Patel Acts As India Losses Mount

(New Delhi Exclusive)—After word that as an industry the go-go airlines of India will report heavy losses when the numbers are tallied for 2006, India’s Civil Aviation Minister Praful Patel announced a shut down on issuing any new airline licenses.
     “There will be no further roll-out of licenses,” Patel declared last Thursday (9/28)
     “I don’t want a repeat of 1991.
     “There will be no blanket ban, but pending applications will go through very, very high scrutiny,” Patel declared.
     Industry watchers recall a run up period during the late 1980’s when new carriers launched with high hopes and less capitalization that by 1991 saw many tanked, as hopefuls like ModiLuft, Damania and East West ran out of lift and went bankrupt.
     “Earlier, companies used to procure licenses even before signing a lease for aircraft,” Patel said.
     “We will change that.
     “There is no shortage of capacity but there are infrastructure hitches,” Patel said.
     Translate that into 13 airlines operating in India, that for one reason or another are locked in constant price wars.
     While conceding that market forces should prevail, Patel reportedly is attempting to dampen expected industry losses by getting the petroleum and finance ministries to reduce ATF (aviation turbine fuel) taxes, which average from 8% to 24% .
     “ATF accounts for 45% of operational costs, against 20% elsewhere,” Patel said.
     Another plan is to impose a mandatory quarterly review of airline financial and operational statements, similar to the requirement of the FAA in America on U.S. flags.
     As to one estimate that losses industrywide could reach or even exceed Rs 2200 Crore, Patel declared:
     “These figures seem to be exaggerated.” (N. Malhotra)

Best Is Last At India 2006

     Sometimes saving the best for last is a good thing.
     Air Cargo India 2006 set to take off in Mumbai is the first ever International Air Cargo event in the new millennium in India, a market that for air cargo is white hot.
     Scheduled to take place at the World Trade Centre in Mumbai, the busiest metropolis, commercial capital and the Air Cargo hub of India from November 16-18, 2006.
     Air Cargo India 2006 organized by The STAT Trade Times, popularly called Stat Times, promises to ring down the curtain (or raise it up depending on your knowledge of the India market) on a year that has seen interest in adding service to India as a top airline and transportation priority in the world.
     R.K. Patra, Editor In Chief of Stat Times told FlyingTypers:
     “This Conference is an attempt to fulfill the increasing need felt in the air cargo industry both in India and abroad for a common platform to come together and deliberate on the prospects in the booming air cargo industry in this country.
     “It is an opportunity for the delegates to interact with the key players of the industry from all over the world about the immense business possibilities in the emerging Indian Air Cargo market.
     “The Conference will also provide an opportunity to the delegates to listen to the views of the decision makers from all sectors of the air cargo industry on a variety of relevant topics in sessions based on the theme “Air Cargo in an Emerging Market.”
     “An exhibition will benefit the players in the air cargo industry to showcase their products and capabilities.”
More info: www.statimes.com.