Mumbai, May 12 (EPC News): Mumbai-Delhi air route emerged as the tenth busiest route in the world, declared a passenger traffic analysis report by Amadeus, a technological solution provider in global travel and tourism industry. As per statistics, seven out of the top ten busiest air routes in the world are in Asian countries. 

Passenger traffic in the air-routes between Mumbai-Delhi, Beijing-Shanghai, Osaka-Tokyo were more than those between cities in US, Canada and Europe. Three out of the top ten busiest routes are in Japan, while the remaining nine involved domestic routes. 

When Jeju-Seoul emerged as the world’s busiest route, Brazil followed with the air-route between Janeiro-Sa Paulo attaining the second position.  

As per the Amadeus analysis, traffic between North America and Europe remains the busiest in inter-regional flow, with over 60 million passengers in 2011, while Asia and Europe followed the league with over 53 million and Latin America and North America with 47 million boarding passengers.  

EPC News Bureau

Lucknow, May 09 (EPC News): The Greenfield international airport project at Jewar has been cancelled by the Uttar Pradesh government. The central government has not given its consent for the said project. The government however, plans to develop an international airport between Agra and Mathura in the near future. 

"The state government has decided to scrap the project as we are not getting clearances for it from the Centre. We are planning to develop an internatinal airport between Agra and Mathura", informed a senior official from the ministry. The process of identifying land will be complete within a month and the land acquisition process will commence soon, added the official.

The Greenfield airport project, which was planned at a distance of less than 100 kms from the Indira Gandhi international airport in New Delhi, failed to attain the Central government clearance, as it neglected the rule of airport construction. As per the rule no airport should be constructed within 150km from an existing airport. Though the Samajwadi Party led state government made repeated requests to commission the project, the central government maintained a firm stand on its rejection. 

EPC News Bureau

New York, May 02 (EPC News): The Atlanta based Delta Air Lines is all set to buy a Pennsylvania oil refinery from ConocoPhillips for $180 million in order to save money on fuel costs. 

Delta said the first ever purchase of a refinery by an airline would allow it to cut $300 million annually from jet fuel costs, which reached $12 billion last year. 

Delta will remain hostage to fluctuating crude oil costs, the facility would enable it to save on the cost of refining a barrel of jet fuel, which is currently more than $2 billion a year for Delta and has been rising in the wake of U.S. refinery shutdowns, said Delta Chief Executive Richard Anderson

According to officials, Delta will effectively outsource all the oil trading requirements for the refinery, an increasingly frequent arrangement for smaller or less-experienced operators.

EPC News Bureau

Mumbai, Apr 24 (EPC News): Work on IRB Sindhudurg Airport is set to commence in mid May as the project has received environmental clearance, according to Rajesh Lonkar, Project Mgr, IRB Sindhudurg Airport Pvt Ltd. 

“IRB Sindhudurg Airport Pvt Ltd will initiate work on its Greenfield airport project by 15th May 2012,” says Lonkar.

The project worth Rs350-400 crore will have a runway length of 3170 meters. Around 671 acres of land has been handed over to IRB for airport project. “The airport infrastructure will not require more than 350 acres. So the balance property land will be available for commercial exploitations and development,” says Lonkar.

The Greenfield airport project awarded to IRB Sindhudurg Airport Pvt Ltd will be developed on a Design, Built, Finance and Operate (DBFO) basis, over a concession period of 95 years. 

“The project is expected to be complete within the next 18 months,” adds Lonkar.  

By Dipika Dalvi

Kannur, Apr 24 (EPC News): The Kerala state government has transferred around 453 acres of land to the Kannur International Airport Ltd (KIAL), according to the Minister for Ports, Excise and Airports, K Babu.

Of the 1,300 acres of land required for the project, we have transferred 453 acres of land for the airport project,” says Babu adding, “Earlier the government has acquired 192.18 acres of land while the decision for the balance land transfer would be undertaken shortly.”

According to K.S. Shibukumar, Dy. Project Engineer, Kannur International Airport Ltd, the detailed project report on the Kannur airport project would be submitted by May 2012. “Consultants Cochin International Airport Ltd will present its detailed project report by May 2012.” 

Moreover, the Centre for Earth Science Studies (CESS) will also submit its environment impact assessment (EIA) report shortly. Once the environmental clearance is received from CESS, work on the land already in possession would begin, says Shibukumar.

He further adds, “Construction work on the runway with length of 3400 meters would start in 2012 while the airport would commence operations by 2015.”

The airport is expected to have an annual traffic of more than 1 million international passengers and above 0.3 million domestic passengers. 

Once completed, Kannur airport would be the fourth international airport in the State after Thiruvananthapuram, Kochi and Kozhikode.

By Dipika Dalvi

New Delhi, Apr 23 (EPC News): The Directorate General of Foreign Trade (DGFT) under the Commerce Ministry, Government of India has permitted three India carriers - Kingfisher Airlines, SpiceJet and IndiGo - to directly import jet fuel from foreign sources. 

Together, these carriers would import almost 13 lakh kilo litres (kl) of aviation turbine fuel costing Rs5,780 crore for the present. 

According to senior Commerce Ministry official, IndiGo has been permitted to  import 7.15 lakh kl ATF worth Rs3,200 crore, while cash-strapped Kingfisher has received approval to buy 5 lakh kl fuel worth Rs2,233 crore. SpiceJet, on the other hand, would import only 50,000 kl jet fuel worth Rs235 crore. 

Air India, which has also applied for such an approval, is yet to receive permission to import ATF. 

With the import of fuel directly from overseas market, the airlines operating cost will be reduced substantially as fuel costs currently, account for about 40% of an airline's total operating costs. 

The three carriers currently are in talks with leading oil marketing companies and are hopeful of beginning fuel imports shortly. 

EPC News Bureau

Mumbai, Apr 20 (EPC News): Government anticipates Reserve Bank of India (RBI) to issue a circular within seven days for enabling the Indian civil aviation sector to borrow up to $1 billion in external loans for a period of one year. The move facilitating access to foreign funds is seen as a relief to the Indian aviation sector facing commercial challenges. 

While announcing the budget 2012-13 Finance Minister, Pranab Mukherjee had proposed permit to external commercial borrowing (ECB) for the airline industry’s working capital requirement for a period of one year subject to a ceiling of $1 billion.  

The prevailing lethargic market conditions and high cost of aviation turbine fuel prevails as the sector’s most pressing issues, resulting heavy losses in the third quarter for airline majors like Jet, Kingfisher and SpiceJet. 

A statement released by the finance ministry informed, ECB for the sector would have a maximum limit of $1 billion with a ceiling of $300 million for individual airlines, which will be available partially or fully as per the company’s utilization of the limit in a year. However, approval of proposals made by individual airlines will be decided by considering the company’s cash flow and repayment capacity. 

EPC News Bureau

New Delhi, Apr, 18 (EPC News): Dubai-based Emirates airline has expressed interest in investing in an Indian carrier as the Indian government is in the move to allow FDI in aviation. Prime Minister, Manmohan Singh is likely to consult senior ministers to build consensus for the FDI.

"The airline is open to looking at anything that helps its business and is at the right price," said Chairman and CEO of Emirates airline Shaikh Ahmad bin Saeed Al Maktoum.

“Nothing is happening for the moment,” he said. When asked about investment in Kingfisher Airlines, Emirates stated, "Talking about the business, there are many other companies like that around the world which we could look at, but don't expect us to buy everything."

Emirates is engaged in the process of gaining additional flying rights in India.

Meanwhile, a cabinet note is being forwarded by the Commerce and Industry Ministry for foreign carriers to acquire stakes in Indian airlines. 

EPC News Bureau