25Years Back
New Civil Aviation Policy
On 24 January the Cabinet announced an integrated policy for domestic air transport services which allows 40 per cent foreign stake in private airlines but kept out foreign airlines from the equity participation. “Any airline owned and substantially controlled by any Indian national will have the right of free entry and free exit in the Indian skies,” the new civil aviation policy provides.
74% Foreign Equity in Civil Aviation Infrastructure
According to the draft policy submitted to the Union Cabinet, foreign companies would be permitted up to 74 per cent stake in any venture dealing with aviation infrastructure which would include airport projects. Mr CM lbrahim, has said that the government does not have sufficient finance to upgrade or build new airports and other related infrastructure. As a result, it has been decided to permit foreign players to take majority stake in such projects. These projects would follow the concept of build, operate and transfer (BOT) according to the civil aviation minister.
FIPB Clears Tata-SIA Venture
The Foreign Investment Promotion Board (FIPB) has cleared the Rs 2,480-crore Tata Industries’ venture with Singapore Airlines to set up a domestic airline in the country. The proposal is to “set up a viable Indian airline with 60 percent Indian participation and 40 percent foreign direct investment as per the prescribed norms.”
Al ‘Red’ Phase Till 98-99
Analysts have stated that Air India is confident of coming “out of the red” in 1998-99 when it hopes to make a profit of Rs 60 crore. The projections are based on macro parameters like the growth in traffic, economy and increased business visits. According to internal airline sources, the imposition of sales tax on aviation turbine fuel (ATF) has been causing “avoidable loss to the airline” when at least seven competing global carriers are not paying sales tax on the ATF lifted by them in India. The Ministry of Civil Aviation has already taken up the matter with the Ministry of Finance.
Jet’s Foreign Equity At Stake
Civil Aviation Minister CM Ibrahim has said that Jet Airways will get 3 months to shed its 40 per cent foreign equity from the date the government announces its decision to bar foreign airlines from investing in the equity of domestic carriers. The Minister’s stand is that no foreign airline can invest in the share capital of a domestic airline.
Jet Airways Inducts Boeing 737-500
Jet Airways has inducted new generation Boeing 737-500 aircraft into its fleet, the airliner powered by CFM 56-3C1 engines with 20,000 lbs thrust. With the addition of this twelfth aircraft into its fleet, Jet Airways has opened three new stations i.e. Indore from 14 December, whilst Pune and Aurangabad will be on-line effective 26 December 1996.
Mi-172s Join Pawan Hans Fleet
On 24 January 1997, Pawan Hans Helicopters inducted two new Mi-172 helicopters for heavy-duty operations. PHL will add another four heavy-duty and two light helicopters to its fleet by the end of 1997. With the new helicopters that cost Rs 10 crore each, the strength of Pawan Hans’ fleet increases to 26 including 20 Dauphins, three Bell and two Robinson helicopters.
Saab 2000 Favoured
An Indian Airlines’ board sub-committee has recommended the Swedish Saab-2000 as the choice of 50-seater aircraft for IA subsidiary Alliance Air’s (AA) feeder operations. According to sources, the subcommittee’s technical evaluation report has already been submitted to the Board. The choice was made from amongst the French ATR-42, the Canadian De Havilland Dash-8 and the Fokker 50. The Swedish plane scored in effective cost of operations over a 10 to 15 year period, the sources said. Alliance Air have been offered a liberal leveraged financing package by all the bidders, similar to that by Boeing and Airbus.
Ex-Luftwaffe Alpha Jets Offered
Germany has offered second-hand Alphajet advanced jet trainers (AJTs) to the Indian Air Force. The offer is reported to have been made during German defence minister Volker Ruhe’s recent visit to India. The IAF had earlier shortlisted the Alphajet along with the BAe Hawk for its requirement of up to 66 AJTs at an estimated cost of Rs 3,000 crore four years ago, but, no decision was taken in regard to the acquisition of these for a number of reasons. The French company Dassault has been offering to transfer the entire Alphajet production line to India and further transferring the right to sell the aircraft to third countries.
IAF Personnel In Russia For Su30 Conversion
In the second week of January, a 50-member team of the Indian Air Force left for Russia for an 80-day “conversion course” on the Sukhoi-30MKI to enable induction of the first batch of eight of these warplanes by March this year. The team which has gone in several batches, includes ground supporting personnel and technicians besides fighter pilots of the IAF and will be under training for more than two-and-a-half months to covert to the new generation Su-30s. On 30 November 1996, India had signed a Rs 6,300 crore contract with Russia, for the purchase of 40 Sukhoi-30s.