 |
 |
 |
| |
||
 |
||
|
Vol. 11 No. 9 #INTHEAIREVERYWHERE Tuesday January 29, 2013  |
 |
 
|
|
ew
year,
new
colors
on
the
airplanes,
and
(although
he
was
officially
appointed
last
year)
new
President
of
American
Airlines
Cargo
Kenji
Hashimoto,
as
he
now
commences
his
first
full
year
in
2013.
|
hen
the government
of India
permitted
foreign
airlines
to take
up to
a 49 percent
stake
in domestic
carriers
on September
14 last
year,
there
was an
instantaneous
cheer
from a
section
of the
aviation
community.
The cheer
came from
a majority
of the
carriers
because—apart
from low-cost
IndiGo—all
were neck
deep in
losses.
Leading
the cheering
team was
the Vijay
Mallya-led
Kingfisher. |
It
has been
almost
two months
since
that decision
by the
government,
but no
foreign
carrier
has made
the first
move to
throw
what would
be described
as a potential
lifeline.
This despite
the fact
that aviation
analysts
in the
country
termed
the government
move as
a right
one for
the industry.
Amber
Dubey,
Partner
and Head
of Aviation
Practice,
KPMG,
India
was of
the opinion
that the
49 percent
stake
to foreign
airlines
would
“create
access
to capital,
global
connectivity,
technology,
and best
practices.”
He went
on to
say that
the move
would
lead to
the birth
of new
airlines
in India
and “perhaps,
change
in ownership
structure
of certain
Indian
carriers.”
The
first
stirrings
of hope
came from
Etihad.
Reports
pointed
out that
Naresh
Goyal’s
Jet Airways
and Etihad
had signed
a code-sharing
agreement
in 2008
that could
send the
Gulf airline
to invest
in India.
In fact,
James
Hogan,
Etihad’s
CEO, had
asked
the Indian
government
for more
flights
on the
India-Abu
Dhabi
routes.
But when
the green
signal
came,
Etihad
virtually
backed
out.
“It
is our
policy
not to
comment
on such
speculation.
If or
when we
do make
further
investments
of this
sort,
we will
announce
them in
line with
regulatory
and commercial
requirements,”
said a
statement
from the
carrier.
The
other
Gulf-based
carrier
that could
have taken
a stake
in Indian
carriers,
Emirates,
was more
forthcoming.
“We
always
welcome
any reform
which
liberalizes
markets,
including
FDI rules.
India
is one
of world's
most important
aviation
markets,”
an Emirates
spokesperson
told a
news agency.
Over
the last
few weeks,
there
has been
talk of
Air Arabia
taking
a stake
in a domestic
carrier.
The Sharjah-based
low-cost
carrier,
however,
has been
guarded
in its
reaction.
In an
interview
to a publication,
Air Arabia
board
member
and group
Chief
Executive
Adel Abdullah
Ali pointed
out that
the carrier
was not
in a rush
to buy
or invest
“in
a market
of which
we are
not an
expert.
“Operating
from UAE
to India
and back
is one
thing,
and picking
up stake
here is
another,
as we
don't
have the
required
expertise,”
he said.
“One
needs
to look
at the
policy
framework
in detail
and understand
what exactly
it offers.”
The
disinterest
in the
country’s
aviation
sector
from foreign
airlines
has led
to questions
about
the Government
tweaking
the foreign
direct
investment
norms.
For the
moment,
however,
the country’s
Finance
Minister
P. Chidambaram
(right)
has gone
on record
to say
that there
was nothing
to “tweak.”
However,
once the
potential
investors
showed
interest,
the decision
could
be amended.
Just by
raising
the limit
from 49
percent
to 51
percent
would
not mean
“somebody
is going
to come.
There
may be
a willing
buyer;
there
has to
be a willing
seller
also.
The Indian
company
must be
willing
to yield
control.
And (there
is) no
evidence
of that,”
said the
Finance
Minister.
Perhaps,
it would
be worthwhile
to take
a look
at why
everyone
seems
to be
hesitant
to take
a stake
in the
Indian
aviation
sector—never
mind the
India
growth
story
in passenger
and domestic
cargo.
The foremost
reason
is that
Indian
carriers
are losing
money.
In the
last financial
year (2011-12),
for example,
Jet Airways,
India’s
largest
carrier
by market
value,
reported
a whopping
loss of
$226 million
while
Kingfisher’s
losses
were at
$425 million.
Of the
low-cost
carriers,
Spicejet
had a
loss of
$111 million.
Add
to that,
the fact
that the
Indian
aviation
environment
is not
conducive
to growth.
Infrastructure
is still
not up
to the
mark and
aviation
fuel is
expensive:
ATF in
India
constitutes
around
45-50
percent
of the
total
operating
cost of
an airline
(the global
norm is
20-25
percent).
It is
indeed
a difficult
task for
Indian
carriers
to earn
profits
even after
paying
such high
prices.
Tirthankar
Ghosh
 Go
trucking April
10-13 at Red
Rock Casino
in Las Vegas
as Transportation
Intermediaries
Association
(TIA)
conducts
its 35th Annual
Trade Show
& Convention.
Hailed as
“the
world’s
largest gathering
of brokerage
based 3Pls,”
“with
90% decision
makers in
attendance
not vendors,”
the event
draws about
800 and is
filled with
education
sessions,
receptions,
awards , networking
and slot machines.
http://www.tianet.org/
.
. .JAL Cargo international tonnage at 21,308 during December, 2012, up 2.5% with mail down 12.% to 3,417. Domestic cargo .tonnage reported at 38,545 dipped 6.2% and domestic mail 2,827 was down 6.7% . . . Panama Canal Expansion Program biggest build since its original construction is 50% complete toward 2015 finish includes dredging, new valves to regulate water flow between the chambers and new lock complexes in the Pacific and Atlantic sides . . . In USA railroad cargo traffic excluding coal, were up 3.3 percent in December with cars and parts, up 13.9%. Association of American Railroads predicts a freight renaissance as stakeholders invest in new locomotives, rail cars, railroad ties and infrastructure with CSX Corporation as example saying last week that it plans to invest approximately $2.3 billion in its business in 2013 . . . Vietnam Airlines Corp. makes IPO offering this year . . . India Government rescue plan for Kingfisher Airlines needs at least Rs 10 billion to restart its grounded operations, and demonstrated ability to sustain itself for at least 6 months . . . Elsewhere report ocean cargo traffic at major Indian ports are expected to grow by 4% in 2013-14, says the Centre for Monitoring Indian Economy (CMIE)….. Fourth year in a row AirBridgeCargo (ABC) named best at Frankfurt Airport as (FRA) honors its top cargo carriers. From FRA ABC operates 12 freighter services a week to its hub in Moscow . . . A self-propelled Bauer BG28 drill used for mining was part of a 100 ton shipment delivered by Volga-Dnepr Airlines to Magadan in Russia earlier this month.The AN-124-100 freighter flight from Moscow was operated on behalf of Stroymechanoservice (you read a mouth full) LLC . . . In From The Cold: Dr. Eduardo Kerbel, Director of Postharvest Handling and Technology at Dole Fresh Fruit International: "Too often each group in the cool chain deals with their own challenges and hurdles and loses perspective on how the way they handle the product affects the outcome. This becomes a vicious circle on who is at blame; the point of it is ... everybody loses.”. . . Cool in January as thoughts drift to Miami and the 12th Air Cargo Americas November 6-8, 2013 at MIA Convention Center. If you are interested in attending, showcasing your company, or as an exhibitor or sponsor contact Charlotte Gallogly (info@worldtrade.org) or call (305) 871-7910 . . . |
Get
On Board
Air
Cargo News
FlyingTypers |
|
Dear
Geoffrey,
Dear
Geoffrey,If
You Missed
Any Of The
Previous
3 Issues
Of FlyingTypers
|
|||||
|
|||||
FT011813 |
FT012513 |
||||
|---|---|---|---|---|---|
