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India Infrastructure update Aviation & Airports

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Apr

30

India Infrastructure update Aviation & Airports

Ministry of Civil Avaition (MoCA) has proposed to scrap the levy of Airport Development Fee (ADF) at Delhi and Mumbai Airports from January 1, 2013. Civil Aviation Minister Mr. Ajit Singh has said that Delhi and Mumbai airports need not levy ADF if they can raise more money on their own and if this move is cleared by the Airports Economic Regulatory Authority (AERA), the regulator. Thought IATA has welcomed this move, the airport developers and AERA say that if the money does not come in through ADF route, it will come in through any other route.  MoCA has decided that it will not sign any more Air Services Agreements (ASA) with other countries until Indian carriers exhaust their quota under the existing agreements. India has bilateral  ASAs with about 109 countries and utilizes only 22.7% of its bilateral entitlement. It is expected that the Indian carriers will enhance their entitlement to about 40% post commencement of international operations by Indigo, Spicejet and Jet Airways.  As a relief to the prevailing problems clouding over the aviation sector, the Directorate General of Foreign Trade has sanctioned five domestic airlines to import aviation turbine fuel (ATF) – Kingfisher Airlines, SpiceJet, IndiGo, Go Airlines and Air India. Further, ECB upto $1 billion has been permitted for the airlines to meet their working capital requirements.  MGAE, a 50:50 joint venture between GMR Hyderabad International Airport Limited and Malaysian Aerospace Engineering Sdn. Bhd, a subsidiary of Malaysian Airlines Systems Berhad, is likely to have 3 more domestic and international airlines for offering aircraft maintenance repair and overhaul (MRO) services at the Rajiv Gandhi International Airport, Hyderabad. The MRO complex can perform base maintenance ‘C’ and ‘D’ checks for A320s, ATRs 42s, ATR 72s and the new generation Boeing 737s. It was set up with an investment of Rs.350 crore.  Kerala government plans to launch its own airline on PPP model to cater to passengers travelling between the state and the Gulf Cooperation Council countries.  Odisha government proposes to develop five new Greenfield airports at – Rayagada, Paradip, Dhamra, Angul and Kalinganagar, to boost intra-state and interstate civil aviation facilities.

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