AIR PASSENGERS ASSOCIATION OF INDIA

Fortnightly Newsletter
March 1-15, 2017

Foreword
D Sudhakara Reddy
Founder & National President

Let me flag two important events, which took place in the last fortnight, which have organic linkages
with each other. One is the recent hearing of the Public Accounts Committee, which, according to
some reports, discussed the public private partnership model entered into by the Delhi
International Airport private Limited (DIAL) and Airports Economics Regulatory Authority
AERA). The other was the recent intervention of the apex court in a legal row between DIAL and
AERA. The subject matter of the two separate events was the same: whether flyers have been
given a raw deal while fixing airport charges at DIAL.

Let me start off with the latter. According to the agreement between DIAL and AERA, during the
first control period between April 2009 and 31 March 2014, a set of tariffs have been fixed by
AERA for DIAL to charge from the flyers. In the second control period-between April 2014 to March
31st 2019- the AERA had slashed airport charges by 96%. But DIAL continues to charge the
same, thereby an unwarranted financial burden has been cast on the flyers. AERA had
consequently filed a petition with the AERA Appellate Tribunal (AERAAT)as advised by Supreme
count on the issue. The matter came up to Supreme Court when Air India filed a Special Leave
Petition (SLP) on January 24 2017, in light of a delay in the verdict of AERAs petition, due to
frequent disbandment and reconstitution. The Supreme court has directed the appellate body that
the matter be resolved by April end 2017.

According to the SLP filed by Air India, DIAL has been unjustly enriched by Rs 7,257.15 crore
approximately on account of revenue generated from tariff charges for the period starting from April
1, 2014, till June 30, 2016. It prayed that DIAL is currently recovering Rs 300 crore (approximately)
per month. It further said that if it is permitted to continue doing so, then by the end of the second
control period (March 2019) there would be a total collection of Rs 17,157.15 crore (approximately)
as against target revenue of Rs 7,709.61 crore. This will lead to excess collection of Rs 9,447.54
 crore over and above target revenue. The direction of the apex court to the appellate authority,
hopefully, will settle the matter at the earliest. Significantly, the decision will be binding on the
Green and Brown fieled airports coming up in the country.

Significantly, APAI has been highlighting concerns of the flyers, such as lack of transparency in
fixing the airport charges, irrationality behind charging development fee, using more space than
what it is been licensed to let out to vendors, lack of quality services etc. in various forums.
Hopefully, these issues would merit urgent attention of the authorities.

APAI is all for PPP model in the airport sector. It believes that resources are stressed and the
government alone will not be able to fend for the huge expences entailed. However, for proper roll
out of the scheme, greater accountability and transparency is needed. That is also the need of the
hour, when India is embarking on an ambitious plan to boost the aviation sector.

(D Sudhakara Reddy)

Secretary Generals Desk

Dr Mahesh Y Reddy
Secretary General

In one of the previous columns, I have complimented the ministry of civil aviation for doing away
with stamping of hand baggage tags in select airports in the country. We hoped that it would be a
baby step towards streamlining the procedures and to save precious time of the passengers. The
reporting time stipulated for domestic and international passengers in the airports are unduly long
in India. Passengers, particularly, those taking the early morning flights are disadvantaged by the
stipulation of early reporting.

Now the government has re-introduced the stamping much to the consternation of the frequent
travellers. Some of them do complain that they are destined to spend more time in the airports than
the actual travelling time to the destinations. The reason given for re-introduction of the security
stamping on the tags is to plug the possible grey areas in the system, which can lead to security
lapses. Now, according to paper reports, it is decided to form a committee comprising of
Bureau Civil Aviation Security (BCAS), CISF and operators of the seven airports to discuss the
matter thoroughly and take foolproof measures which do not breach the security standards. At the
same time, there is a grapevine that the step has been put on hold on account of the turf war
between the civil aviation ministry and home ministry suggesting that the latter was not consulted
while taking the decision to disband with the stamping of tags.
 Be that it may, the pertinent point is to make the travel seamless and convenient. Admittedly, the
longer reporting time is an irritant and there should be concrete steps to minimize such time by
taking proactive steps. Deployment of technology is one such step. Can we have customized
technology platforms that can ease the burden of checking - in so also the time required for it? For
instance, there should be more space dedicated to airlines for using as check in counters. Even
while the space is available, airlines will not go for acquiring the space on account of the cost
cutting measures. In such cases, it is important to have a re-look at the rentals being charged from
the airlines for setting up check in counters. There is also an allegation that the airport operators
are parking more vendors in the airports to realize more non aeronautical revenue to boost up the
profitability. One has to see whether such allegations are true or not. That can be ascertained only
by comparing the original agreement entered by the parties and Airport Authority of India and the
deviations that had taken place from the agreement.

The other way out is automation of airport operations to ensure seamless travel. From the time the
passenger enters the airport till the security check is over, there can be different stages where
technology can be deployed to replace manpower interventions. Of course, such dispensation
should have zero tolerance to security lapses.

Hopefully, the empowered committee set up to look into the desirability of doing away with tag
stamping will come out with its report, after due deliberations and implement the decisions
earnestly. The least one should do is to hurriedly take a decision, which has to be put on hold later
as it happened now. Switch on and switch off policies do not bode well for any organization.

(Dr Mahesh Y Reddy)

Air Passengers News

New Business Class Suite at Qatar Airways

Qatar Airways revealed that the airline was working on a super business class, which would
make first class obsolete. Their new product just now at ITB Berlin, one of the worlds biggest travel
trade shows. Qatar Airways is calling their new business class product the Qsuite, with the slogan
First in Business.

Cost-Cutting at British Airways

 In British Airways , crew members services are enlisted give planes a light clean during the time
between flights instead of paying contracted cleaners. Crew will be paid an additional 10 per flight
segment. Crew cleaning planes between flights is hardly a new idea. When Southwest Airlines
was forced to return one of its four planes in 1972, they invented the 10 minute turn to shorten the
time between flights and maintain their schedule using only three aircraft. Flight attendants and
pilots cleaned planes during those 10 minutes. And of course on every flight, crew come around
picking up trash from passengers prior to landing even if theyre not going back through the plane
once on the ground to look for items left at seats, on the floor, or in seat pockets. Financially
troubled airlines often reduce cleaning and fly dirty planes. One has to see how the experience of
the BA will help in reducing the cost, maintaining cleanliness especially in the lavatories and in
retaining their loyal passengers, who make beeline for cleaner and cosy seats and of course toilets.

Passengers to feel the squeeze as airlines add extra seats to save cash

Elbow wars in the sky are set to get tougher as major international carriers including British Airways
(BA), Emirates, Etihad and Air France are reportedly adding an extra seat in each row of the
economy class cabins of their Boeing 777 aircraft.

Passengers will have to cope with about an inch less of seat width space on a long-haul flight,
which are mostly operated on Boeing 777s, than they would in the current nine-seat layout, with
each seat under the new design being around 17-inches wide.

Delhi-Cochin Air India flight makes emergency landingThe aircraft, with 236 passengers on
board, took off four hours later.

An Air India flight was forced to make an emergency landing soon after taking off from Delhis
Indira Gandhi International Airport recently after two engineers forgot to remove pins from the
landing gear of the flight. Both engineers were taken off duty pending inquiry.The pins on the
landing gear ensure that the wheels of an aircraft do not accidentally retract when it touches the
ground. If the pins are not removed before take-off, the wheels cannot be retracted while the plane
is in flight.

IndiGo pilots blame `unaware' ATC for delay

The next time you are waiting for your plane to start taxiing for departure and the pilot says air
traffic control (ATC) is causing the delay , he or she may well be trying to just deflect the blame
 from the airline's unpreparedness to get airborne in time.

An ATC official (ATCO) stumbled on this practice inside an IndiGo aircraft at Chennai airport last
Friday (March 3) while waiting to take off to Madurai. The flight, 6E 859, was supposed to depart
at11.45am but was delayed to 12.25pm. Let us hear the version of the ATC official and form our
own conclusion:
When I was on board, the pilot -in-command (PIC) made a cool (sic) announcement that the flight
is further delayed (for 20 more minutes) because ATC is not clearing the flight. I rang up my friends
in the (ATC) tower and came to know that the pilot didn't even ask for push back (permission for
the plane to be towed back so that it can then taxi out on its own power), the ATCO says.
He then called the flight attendant and met the pilot in the cockpit where he reportedly found that
the co-pilot was not in his seat. Beware of such announcements when you travel next. It may be
bluff deflect the real reason.

SpiceJet to reserve seats for women flying alone

After Air India, now SpiceJet has also decided to reserve a row of seats for solo women travellers.
The low-cost carrier said that fromWednesday - which happens to be International Women's Day --
it will have the fourth row of its Boeing 737s and Q-400s reserved for women flying alone. In case
of a full flight scenario, males will be assigned window seats; whereas the aisle and middle seats
(B, C and D, E) will be assigned to women on a first-come-first-serve basis. The special seating
arrangement is being catered to offer more ease to the solo female travellers, as moving out of the
middle or the aisle seats is much easier thereby ensuring safety and comfort to them in case of an
emergency and even otherwise. In a first for airlines globally, Air India had from January 18, this
year started reserving one row six seats in economy class for single women travellers on
domestic flights.

New baggage rules at Dubai airport from March 8, 2017

The new rules at Dubai International will not allow over-sized baggage or irregularly shaped ones.
Dubai Airport authorities are enforcing stricter baggage rules that may change the way you pack
your suitcase.
The new rules will come into effect on March 8, 2017.What are they?

1. All bags should have a flat surface

2. No irregular shaped bags
3. No oversized bags
4. No round bags
5. All bags should have a flat surface
 Centre stays order to stop stamping baggage at 7 airports
The Centre has temporarily shelved the decision to do away with the stamping of hand baggage at
seven airports over the lack of required security equipment. The practice of stamping hand
baggage at the airports had been stopped from February 23. The decision affects the airports in
Delhi, Mumbai, Kolkata, Bengaluru, Cochin, Hyderabad, and Ahmadabad

Jet Airways Offers Special Fares Starting From Rs. 1,330

Jet Airways has under a promotional scheme put on offer special airfares starting Rs. 1,330 on
domestic economy class flights. Special fares under Jet Airways' "Best Fares Forever" offer are
available only on jetairways.com and its mobile app, the airline said on its website. Jet Airways also
said the fares are "applicable on direct flights only", tickets for which must be bought a minimum of
20 days prior to departure. Limited seats available on a first come, first serve basis. The special
fares scheme from Jet Airways - which competes with the likes of Air India, IndiGo, SpiceJet and
AirAsia in the Indian market - comes on the heels of similar offerings by rival airlines. Discounted
fares from various airlines have spurred strong growth in air travel market in India. The country's
domestic air passenger traffic zoomed 25.13 per cent to 95.79 lakh last month, data from aviation
regulator DGCA (Directorate General of Civil Aviation) showed.

Qatar Airways is the best value airline for legroom in economy, with Delta and Etihad also
making the top five Qatar Airways has been crowned the best value airline for legroom in
2017

A new study reached the finding based on two factors: which airlines offered the most space
between rows on long-haul flights, and how much (if at all) is charged for extra legroom.
Qatar came out on top in terms of overall value for money, closely followed by Air India, Delta Air
Lines, Etihad Airways and Turkish Airlines. Legroom, which is known in the industry as seat pitch
can be defined as the distance between a single point on an aircraft seat and the identical point on
the seat in front.

Slash taxes to support aviation to drive economic growth: IATA

Global airlines body IATA has asked governments across the world to slash taxes and support the
aviation sector through improved infrastructure to drive economic growth, generate employment
and connect people.
 Making a strong plea for reducing the tax burden on airlines, IATA said the Airlines for America
(body of major US carriers) estimates that taxes account for more than a fifth of the cost of the
average domestic ticket.

Spicejet to pay 2 flyers for charging transaction fees

The apex consumer commission has directed Spicejet to pay a little over Rs 50,000 to two persons
for charging transaction fees despite a DGCA circular and a Supreme Court order banning such
levies.

The National Consumer Disputes Redressal Commission (NCDRC) directed the airlines to pay an
amount of Rs 25,125 each to Rajasthan natives Sujata Chaudhary and Sanjay Rahar.

SpiceJet shuns UDAN subsidies

No-frills carrier SpiceJet will fly without subsidies to unserved airports from three of Indias biggest
urban centers, helping achieve the federal goal of boosting regional aviation connectivity in a
country that relies on crowded railroads and rickety roads to link its cities to the hinterland. Among
eleven airlines applying for regional flights under the plan patronized by Prime Minister Narendra
Modi, SpiceJet has offered to operate regional flights out of Mumbai, Kolkata and Delhi without
cash support from the government, according to two governments.

Now the Hungarian fighters Escorts AI flight

The passenger numbering 231 and 18 crew travelling by Air India flight bound from Ahmadabad to
London in a Dreamliner were in for a shock when they were escorted by two Hungarian fighters in
a very recent incident. Coming close on the heels of the incident when German air force escorted a
Flight , which happened as late as February 16, 2017 this avoidable mishap has made authorities
to huddle together and take stock of the situation. The recent scare may have been triggered by
a communication failure as the AI pilots were bewildered to spot the Hungarian fighter jets
escorting their Dreamliner, according to a preliminary probe by the carrier. The pilots switched to a
different frequency to speak to one of the Hungarian pilots, asking him as to why the plane was
being escorted. The AI pilots were told that the fighter jets had to be scrambled as the plane was
"out of touch" for a while. Even after this conversation, the Hungarian jets kept flying with the AI
plane. The AI pilots again spoke to the fighter pilot and told him that the passengers were alarmed
as they could see the jets flanking the plane, a highly placed source said. Only after this did the
fighter jets fly away and AI plane kept flying to London.
 Delhi cuts tax on aviation fuel to boost travel to smaller cities

The Delhi government has reduced the tax on aviation fuel to 1 percent from 25 percent for flights
operating to smaller towns and cities in a move to reduce costs for airlines flying to remote areas
from the Indian capital.

The tax reduction is only for airlines operating under the federal government's regional connectivity
scheme, introduced last year to make flying more affordable. India is the world's fastest-growing
aviation market but most of the air travel is between big cities. Under the regional connectivity
scheme, the government will subsidise part of the cost for airlines to operate flights to smaller
towns. Jet fuel is one of the biggest costs for airlines, especially for low-cost carriers such as
IndiGo Airlines, owned by InterGlobe Aviation, SpiceJet and GoAir.

Airlines Aim to Trick Your Taste Buds

Finally, beer may start tasting good at 30,000 feet. Airlines, which usually get a bad rap for bad
food and so-so drinks, are starting in earnest to plug the sensory gap.

They are aided by the knowledge that noise, low pressure, dry air, plastic cutlery and cups are also
largely to blame for meals that taste less than appetizing. Studies have shown that those factors
alter the way we taste things at high altitude compared to when were on the ground. Cathay
Pacific, the Hong Kong carrier, introduced on some flights a beer brewed to taste good while the
flier is miles above the earth. It contains honey and dragon eye, a fruit that tastes like lychee.

Air passengers rail against allowing mobile-phone calls on planes

Americas Transportation Department recently sought public comment on whether it should
continue to ban calls from mobiles in the air. More than 8,000 people weighed in before the
deadline in February. And in an era when its hard to achieve public consensus on just about
anything, this issue seems to unite people to an uncommon degree.
Of the last 100 public comments submitted, for example, just one was in favour of calls on planes
and only if airlines agreed to strict regulations and imposed no-call periods during takeoff, landing
and safety demonstrations. The others were emphatic in their disapproval.
There seems to be something exceptional about planes in this regard. Mobile phone access has
been increasing quickly on other modes of transit in America, with little in the way of complaint.
Subways in cities such as Washington, DC for example, are adding mobile phone service. New
York has recently added free Wi-Fi in its underground subway stations, allowing for internet calling
and services like FaceTime and Skype. Intercity trains and buses offer internet collections that
allow for the same, even when cell phone service is weak. (Flyers are not allowed to use such
 services, even when they are logged onto the planes Wi-Fi.) But there is one crucial difference
between a passenger jet and a train. On a train or bus you can always move to another seat if you
are annoyed.

India to get 'no fly list' to deal with unruly flyers soon

Misbehaving on a plane or doing anything that endangers flight safety and fellow passengers could
soon mean getting debarred from taking to the skies again for some time.

Aviation ministry is finalising India's own "no fly list" that will grade unruly acts committed by flyers
and accordingly bar them from flying for a period ranging from a few months to a few years. People
who wish to fly on domestic routes now need to provide identity proof such as Aadhaar number,
PAN card, passport or driving licence number at the time of booking tickets. For international
tickets, passport numbers and visa details have to be furnished.

Indian Aviation Industry to witness max passenger traffic growth amidst profitability
pressure, says ICRA
New Delhi: Credit rating agency ICRA has said that the Indian Aviation Industry is likely to report 22
to 23 percent passenger traffic growth in FY2017 supported by ongoing low airfare regime says
ICRA in its report.

The airlines are maintaining healthy PLFs backed by low airfares. However, since the ATF prices
have been on an uptrend during the year, the impact on profitability of the airlines during Q4
FY2017 is inevitable as average ATF prices during the quarter are 37.9 percent higher YoY, while
the yields continue to remain under pressure.
As per ICRA estimates, the fuel cost per ASKM (CASK) of the domestic aviation industry increased
to Rs. 1.16 in January 2017 from a low of Rs. 0.82 in February 2016, and the same is expected to
increase further in February and March 2017.

Security at airports to be hassle-free but strong

CISF Director General The CISF is working to make security processes at airports simple and
hassle-free as it prepares to build an effective defence framework to thwart possible terror threats,
including lone wolf attacks, at these facilities. Addressing the annual press conference in New Delhi
on the occasion of its 48th Raising Day on March 10, CISF Director General O P Singh said the
force was testing and analysing a plethora of smart gadgets like full body scanners and smart
CCTVs to make air travel more secure, safe and easy. He said the force has been mandated by
the government to take over security duties of all civil airports of the country in the near future. The
Central Industrial Security Force (CISF) presently guards 59 airports, including the most sensitive
ones at Delhi and Mumbai, and at least 39 more are in the offing.

TV anchor alleges threats for complaining about food in Delhi-Mumbai Spicejet flight
Two days after a television anchor and former model filed a police complaint against a flight
attendant and two security officials of a budget airline for alleged mistreatment, he has again
approached the police, claiming to have received threat calls for taking on the airline.

The complainant, Karan Ambardar, approached the police recently saying he and his wife Shilpa
Aggarwal were "forcefully" made to wait on an aerobridge for more than an hour on March 1, after
landing in the city from Delhi, by SpiceJet officials only because he had complained about the
quality of food served to them.

Robot to greet passengers at Coimbatore international airport Coimbatore

Passengers at Coimbatore international airport were pleasantly surprised on recently when they
were greeted by a robot at the security check-in counter. Fondly called NAO, it is an identical twin
of Lakshmi, the country's first banking robot. NAO now speaks and understands English, but will
soon be programmed to interact in 19 Indian and 17 foreign languages.

Powered by Artificial Intelligence and an autonomous licence and an autonomous software, NAO
can also dance, play games, ask questions, sense your touch, sit and walk. Ask it about flight
delays and timings, which boarding gate to go to or recreational facilities at the airport, and he will
help you with the information. Officials at the airport said children and elders were the most happy.
The robot is equipped with facial recognition and can even grasp anything you give it.

SpiceJet announces 7% discount on India-Dubai flights

Mumbai: Low fare carrier SpiceJet Fridayannounced a 7% discount on its flights from India to
Dubai, the latest in a slew of offers in the ongoing lean travel season. Airlines offer discounted
rates during the months of February to April as fewer holidays and festivals lead to a dip in air
travel. SpiceJet's offer is valid for booking between March 1 to 15, for travel until the end of this
month.Last month the airline announced a flat 10% discount on flights to Muscat from India.

"Language of ATC and Pilots: English is the international language of flight. All Air Traffic
Controllers and all commercial pilots who fly on international flights are required to
communicate in English. However this is not plain English. In ATC world, they call
it Phraseology which is a standard format used by ATCOs and Pilots all across the world."
 News on Airports

Hyderabad airport ranks 1st in world in airport service quality: SurveyGMRs Hyderabad
International Airport has secured first position in the world in the prestigious Airports Council
International (ACI)-Airport Service Quality (ASQ) survey in the 5-15 million passengers per annum
(MPPA) category for the year 2016. The survey shows that Hyderabad Airport has steadily
improved its score from 4.4 in 2009 to 4.9 in 2016 (measured on scale of 1 to 5), according to a
GHIAL statement. The immense efforts put in by our partner airlines, concessionaires,
housekeeping and other support staff have played a major role in this achievement, he said

Hyderabad Airport, running in to its 9th year of operations, is designed to cater to 12MPPA. It has
witnessed a growth of more than 20% in the last year with a passenger throughput of close to
15MPPA in calendar year 2016

Delhi's Indira Gandhi International Airport second best in category: Survey The Indira Gandhi
International Airport (IGIA) in Delhi has been ranked world's second best airport, which handle
more than 40 million passengers annually, according to a global survey.

This is a significant improvement from the previous year's rating, where the GMR-group operated
airport was ranked no 1 in a smaller category of 25-40 million passengers per annum (MPPA) and
at no 6 globally. Delhi International Airport Limited's (DIAL's) Airport Service Quality (ASQ) score
increased from 4.96 in 2015 to 4.99 in 2016, helping it attain the second position globally, only after
Incheon in South Korea, according to a press statement.

Airport Council International's ASQ ranking is a globally established benchmarking programme

measuring passengers' satisfaction while they travel through an airport.

Indias first heliport for flying to nearby areas become operational in Delhi
Indias first dedicated heliport built at a cost of Rs 100 crore for flying in and out of Delhi to nearby
areas in choppers became operational in New Delhi on Tuesday.
Civil Aviation Minister Ashok Gajapathi Raju inaugurated the state-of-the-art heliport at Rohini in
north Delhi, saying this is the first such integrated facility in South Asia.

The heliport that is expected to reduce congestion at the IGI Airport in New Delhi would also
 provide air connectivity to nearby pilgrimage centres besides medical emergency evacuation
services.

Air India plans 3 weekly flights to Tel Aviv from May Air India is set to operate direct flights between
Delhi and Tel Aviv as early as May, after Tourism Minister Yariv Levin met with the CEO of the
Indian airline, Ashwani Lohani, to seal the deal. Air India has asked the Israel Airports Authority to
allow it to run three weekly flights between the two countries. India is a popular destination for
Israelis, particularly young people just discharged from army service. But increasing numbers of
Indians have been visiting the Holy Land, too. Out of 158,000 passengers traveling between the
two countries last year, some 45,000 were Indians coming into Tel Aviv.

PAC seeks details of DIAL's revenueA parliamentary panel has sought details of revenue earned
by Delhi airport operator DIAL since the privatisation of the facility as it observed that government
is "losing heavily".

The Public Accounts Committee (PAC) headed by Congress MP K V Thomas has directed the Civil
Aviation Ministry to provide the details of the total earnings of DIAL and revenue earned by the
government in terms of its approved shares.

Delhi International Airport Ltd (DIAL) is a joint venture in which GMR group holds 64 per cent while
Airports Authority of India (AAI) has 26 per cent. The rest 10 per cent shares are with Fraport AG.

At a meeting at Delhi International Airport, the PAC members observed that government is "losing
heavily" in the joint venture firm DIAL and asked the Ministry officials to submit its revenue details,
a source privy to information said.

Phase I of parallel taxiway ready

The Airports Authority of India on Monday commissioned the Phase I of the parallel taxiway (or
track) at the Mangalore international airport here. The Phase I track is 1,200 m in length. Air India,
AI 680, Mangaluru-Mumbai flight, was the first to use the track. The fire engines of the airport gave
a water cannon salute to the aircraft before it entered the taxiway.

With the opening of the new taxiway, the runway occupancy time and waiting time for aircraft at the
apron (parking area) will be reduced considerably.

Government Okays Rs. 4,500 Crore Project To Revive 50 Airports, Airstrips

The Cabinet on approved a proposal to revive 50 unserved and under-served airports as well as
airstrips at an estimated cost of Rs. 4,500 crore.
With the plan, the government is looking to enhance air connectivity to small cities and towns while
 the revival of such airports and airstrips would be "demand driven".

The proposal was approved by the Cabinet Committee on Economic Affairs, chaired by Prime
Minister Narendra Modi.

Government Okays Rs. 4,500 Crore Project To Revive 50 Airports, Airstrips The Cabinet on
approved a proposal to revive 50 unserved and under-served airports as well as airstrips at an
estimated cost of Rs. 4,500 crore.

With the plan, the government is looking to enhance air connectivity to small cities and towns while
the revival of such airports and airstrips would be "demand driven".

The proposal was approved by the Cabinet Committee on Economic Affairs, chaired by Prime
Minister Narendra Modi.

"Incidents of Turbulence Are Rising: Its official, there is no place on or above the earth you
can escape the negative effects of climate change. Increases in carbon dioxide in the
atmosphere have been causing incidents of turbulence to rise. They will continue to rise
until we humans are able to make climate-friendly life choices."

Airline News

Boeing Feels Heat From Airbus to Debut Its Longer 737 Aircraft

Boeing Co. is nearing a decision to build a longer 737 Max targeted for trips from Boston to Los
Angeles and fill a gap in its product portfolio that Airbus Group SE is exploiting as it racks up
order after order for its A321 neo.

Boeing is in intense discussions with airlines and lessors for the Max 10X and has extended
business offers to some potential buyers as it builds a case for the narrow-body jet, Randy
Tinseth. The decision on when to launch the plane is expected this year.

Timing and price are two of the critical elements that Boeing must consider in its high-stakes chess
match with Airbus for dominance of the single-aisle market. The 737 and A320 family aircraft, long
favored by budget carriers, are the largest source of profit for the aerospace titans. Billions of
dollars of investment are at stake, and the payoff can be thwarted by factors ranging from cheap oil
to supplier stumbles.

DGCA probes P&W engine issues on Airbus A320 NEOs

India's aviation regulator said it is investigating issues that have arisen with the Pratt and Whitney
engines in Airbus Group's A-320 NEO narrow-body jets brought into service over the past year by
two local carriers.. The Directorate General of Civil Aviation said at least two incidents involving
A320 NEO planes fitted with the engines flown by IndiGo - owned by InterGlobe Aviation - and
privately-held GoAir - were under investigation. Airbus began rolling out the A320 NEOs in January
2016 and it has so far delivered about 70 to customers worldwide. Pratt & Whitney, which is part of
United Technologies Corp, said in an e-mail the engine maker was supporting GoAir and IndiGo in
assessing the situation and minimizing any disruption.

CEA Arvind Subramanian Wonders Whether Air India Should 'Exist At All
'Air India's performance has improved with competition posed by private players, Chief Economic
Advisor Arvind Subramanian said recently , but wondered whether the state-owned airline should
exist at all. The national carrier, staying afloat on a Rs 30,000-crore bailout package from the
central government, is working on ways to improve its financial position. In the last fiscal ended
March 2016, the airline had posted an operational profit of Rs 105 crore.

"Air India with IndiGo and Jet Airways is very different from Air India without. Whether Air India
should exist at all even with Jet Airways and IndiGo is another question which we don't want to go
into now," Subramanian said.

The point is competition has actually improved Air India's performance, he added. Subramanian
was delivering the keynote address at the national conference on economics of competition law
here. Despite a debt of Rs 46,570 crore, including Rs 15,900 crore on account of aircraft
acquisition, Air India managed to report an operating profit in 2015-16.

In the Union Budget 2017-18, the airline has been allocated Rs 1,800 crore as part of the Rs
30,231 crore financial bailout package.

The Flight Feat Kudos All Women Crew

An all-women crew! Air India 173 to San Francisco took off from the Indira Gandhi International
Airport in Delhi on February 27, covering a distance of around 15,300km in15-and-a-half hours
over the Pacific route. The return journey on flight AI 174, via the Atlantic, touched down in Delhi on
 March 3, adding a feather to our aviation cap. What is great about it? Not just the commanders,
first officers and cabin crew, the entire flight was operated by the women staff of eight departments
including cockpit crew, cabin crew, check-in staff, doctor, customer care staff, ATC and the entire
ground handling from operator to technician, engineer and flight dispatcher and trimmer. Even the
line operation safety audit was done by Harpreet A De Singh, executive director, flight safety, Air
India. This is the first time that this audit was done by a female officer for an around-the-world
trip. Once the flight landed in San Francisco, the crew were felicitated at the airport.

Tibet's second largest airport terminal opened close to India

China today operationalised the second-largest airport terminal in Tibet, close to the Indian border,
which will be able to handle 750,000 passengers and 3,000 tonnes of cargo annually by 2020. The
new terminal, the sixth to be opened in Tibet, is part of Nyingchi Mainling Airport, which is located
close to Arunachal Pradesh. India too has initiated border infrastructure development in the recent
years. The airport covers an area of 10,300 square meters and will be able to handle 750,000
passengers and 3,000 tonnes of cargo annually by 2020, state-run Xinhua news agency reported
today.

Air India aims to raise $470 million to fund Dreamliner planes

National carrier Air India has floated a tender to raise a bridge loan of $470 million (Rs 3,149 crore)
for financing the remaining four of its ordered Boeing 787 Dreamliner planes.
The last date of bidding for banks is March 21.The state-run carrier had in 2005-06 placed an order
for 27 Boeing 787 Dreamliner planes as part of the mammoth 111 plane order placed with the
american plane maker and its European rival airbus. The deal was valued at $15 billion.

Jet Airways features in top 200 influential brands

Airline major Jet Airways has become the only Indian brand to feature in the list of top 200 most
influential brands in the world by a leading digital platform Richtopia.
According to the airline, it has been ranked at 109 in the list. The top 200 list comprises of
influential global brands that are effective, in addition to having soft-power and being pro-active,
particularly in the digital sphere.

Richtopias list is an automatic algorithm based on social media influence, Klout scores and other
parameters. It takes into account various metrics from Twitter, Facebook, Wikipedia, Youtube,
LinkedIn and Instagram. Jet Airways has an active presence on social media. It has the largest
social media following amongst all Indian airlines with over 2.9 million followers.

"Operators must identify and mitigate the risks of using EFB technology. Procedures need
to be in place to minimise the risks posed by total or partial failure of the EFB, loss of data,
 or corrupt/erroneous inputs or outputs. Another electronic tablet device is an acceptable
backup"

Air India sold 5 Boeing planes at 'significantly' low cost.

Air India sold its five Boeing planes to Etihad Airways at a "significantly" lower cost than the
"indicative" market price of the aircraft, CAG said in a report tabled in Parliament today. The
government-owned Air India sold these five Boeing 777-200 LR planes to the Gulf carrier Etihad for
USD 336.5 million (USD 67.3 million per plane) in 2013 against USD 86-92 million per aircraft
obtained from two parties --M/s AVITAS and ASCENT, the Comptroller and Auditor General (CAG)
observed in its report 'Turnaround Plan and Financial Restructuring plan of Air India Ltd' (AIL). In
its latest report on the airline, the CAG also observed that AIL incurred a book loss of Rs 671.07
crore on the sale of these planes and payment of Rs 324.67 crore towards interest on loans availed
for procurement of these aircraft. The aircraft were delivered to Etihad Airways during the period
from January 2014 to April 2014. According to the CAG, after opening the financial bid, Air India
obtained another valuation of the aircraft from Aviation Specialist Group (ASG) who estimated the
then market value at USD 93 million to 96 million and the realisable value to be between USD 65
million to USD 72 million per aircraft.

AI needs more funds to stay alive

The CAG's performance audit report of the Indian airlines tabled in Parliament recently said the
government may have to reassess the fund requirement for the airline.The auditor says AI
understated its losses. Though AI reported a positive ebitdaof Rs 166 crore (April-December 2014)
from a negative Rs 191 crore (April-December 2013), both the statutory auditor and the CAG had
expressed qualified opinion on AI's accounts for all the three years (2012-13 to 2014-15), pointing
out significant understatement of losses in (its) financial statements. The understatement of losses
were Rs 1,456 crore (2012-13), Rs 2,967 crore (2013-14) and Rs 1,993 crore (2014-15).
Considering (these) the ebitda of AI would be negative (up to March 2015,) CAG maintains. In
2012, UPA-II had approved equity infusion of Rs 42,182 crore in AI over a 20-year period under
a financial restructuring plan.

Airbus just revealed a wild concept car that can be airlifted by a drone
Airbus is proposing a new solution for avoiding rush hour:
The aircraft manufacturer revealed its vision for a car that can be airlifted by a drone. Called the
Pop.Up system, the car-drone combo is making its debut at the Geneva Motor Show, which
opened to the public March 9. Airbus designed the system with Italdesign, a design and
engineering company. The key component of the Pop.Up system is a capsule that is 2.5 meters (8
feet) long and 1.4 meters (4.6 feet) high that can house passengers. That capsule can attach to a
battery-powered chassis to become a two-seater electric car. Airbus says that without the capsule,
the chassis can drive 100 kilometers (62 miles) on a single charge .

Qatar Airways plans first fully foreign-owned airline in India

India may soon get its first fully-foreign owned airline after the Modi government allowed 100% FDI
in the sector last June. Qatar Airways is planning h to start an airline in India with the investment
arm of Qatar government. Qatar Airways has for many years been eyeing a stake in IndiGo but the
Indian budget carrier has not done so. While foreign carriers will still be required to have up to 49%
stake in airlines here, they can now get a foreign partner like a sovereign wealth fund or an
institutional investor and not look for an Indian partner to put in the remaining 51%.
However, India is yet to review the issue of "substantial ownership and effective control (SOEC)" in
the fully-foreign owned airlines it had allowed last June. Currently, flying licences are given to an
airline in India only if its chairperson and two-third of the directors are Indians and if the SOEC is
with Indian nationals.

At present, only three Indian carriers have investment by foreign airlines. Abu Dhabi's Etihad has
a 24% stake in Jet Airways+ . Tata Group holds 51% stake+ in Vistara and AirAsia India each,
with Singapore Airlines and AirAsia Berhad having the remaining 49% in them respectively.

Honeywell ties up with India's Bird ExecuJet

American engineering and aerospace company Honeywell has tied up with India's Bird ExecuJet
Airport Services to provide support services to business aviation customers in the country. The
channel partner agreement with Bird ExecuJet provides customers in the region with access to a
number of Honeywell services, including avionics, connectivity,maintenance and upgrades, said a
statement. Bird ExecuJet Airport Services is a joint venture between Bird Group and ExecuJet
Aviation Group that provides a one-stop shop for fixed-base operator and maintenance, repair
and over.

GoAir preparing for IPO 'at the right time': CEO

As investors turn positive on the aviation sector, Budget airline GoAir is preparing for an initial
public offering (IPO), . The airline said that it has has not put the idea on backburner. Rather, it is
waiting for the right time. The industry is also getting more investor interest now after Warren
Buffetts positive comment on the sector. Buffets Berkshire Hathaway recently invested USD 9.3
billion in top four US airlines. This coincided with a rally in listed Indian aviation stocks IndiGo ,
SpiceJet and Jet Airways. In August last year, Wadia-group backed GoAir said that an IPO is
likely to take place by FY17-18 end. It had also said that once Airbus A320neo planes join its fleet,
the company will prepare for an IPO. The aircraft have now started joining GoAirs fleet. Lower fuel
cost in the last two years has boosted profits for airlines companies. In 2015-16, GoAir reported
profit of Rs 166 crore while IndiGo, during the same period, reported profit of Rs 1,990 crore.
 AirAsia'
AirAsia India is trying hard to expand its fleet size to 20 in order to become eligible for international
flying.According to AirAsia flying international for AirAsia could be possible by mid-2018.Malaysia,
Thailand are popular tourist destinations that AirAsia wants to cover in its international ambit,
keeping in mind the operational limitations of their fleet of A320 aircraft.

Air Costa Suspends All Flights Till March 15

Cash-strapped regional airline Air Costa has suspended its operations till March 15 for operational
reasons. The three-year-old feeder airline was operating daily service to eight cities, including six in
the southern region - Bengaluru, Chennai, Hyderabad, Tirupathi, Vijayawada and Vizag and two in
the western region - Ahmedabad and Jaipur.

News in Brief

Passenger tied to chair by cabin crew after being told to put out cigarette. The
man had to be tied up on a plane after he kicked off when cabin crew told him to stop smoking.
Mohammed Rashid, 57, was restrained in front of his family on a flight from Dubai to Manchester,
on August 31.

Air India(AI, Mumbai Int'l) has selected global consulting firm McKinsey and Co. to help the
airline to develop its business plan, reports The Economic Times of India. As the successful
consultancy, McKinsey will advise Air India on cash-flow, route networks, marketing strategies and
updating its loyalty program.

On the day of setting its foot in Madurai with two new flight services, IndiGo, a low-cost
airliner, on Wednesday announced introduction of its third flight from Madurai to Hyderabad
on March 26. Its inaugural flight that landed in Madurai from Delhi after a stopover at Chennai was
given a water cannon salute by the Airport fire-tenders. Besides, a New Delhi-Madurai-New Delhi
(with touchdown in Chennai on both directions), the airliner has also simultaneously launched a
Chennai-Madurai-Chennai daily service on Wednesday.