If reports emanating from Rajiv Gandhi Bhawan, the headquarters of the Civil Aviation Ministry, are to be believed, the government has agreed to pump in funds into the flailing carrier.
     What must come as a big blow to the Air India top brass is that the government has pointed out that it can provide only around $1-1.5 billion and not the $3 billion it asked for.
     Officials are working hard to restructure the planned expenses now that they know that the carrier will only receive around half of what it had asked for.
     The new plans will be submitted by the third week of June after which the government will take a final decision on the amount of funds to be released.
     Over the last few months, Air India and its parent body, National Aviation Co. of India Ltd (NACIL) has been beset by troubles.
     For example, during Praful Patel’s last five-year tenure as minister, Air India, has seen seven CEOs – the last one being Arvind Jadhav.
     There has been no continuity in the top office.
     This has hurt the airline and its operations.
     Now that Arvind Jadhav has taken over, things seem to be moving.
     A case in point is the entrance of the carrier into Star Alliance.
     An Indian Administrative Service officer, the new CMD is apparently a no-nonsense person.
     He has taken some tough decisions and old timers at Air India seem to like that.
     Whatever the government gives as a bailout package, Minister Patel has to take some hard decisions and not allow the national carrier to drift.
     Among the hard decisions are the 10,000-odd extra employees.
     The state-owned carrier has few motivated staff.
     There is no effective management and almost zero supervision.
     Result: only around 10 percent of Air India’s flights cover costs, with the rest being losses.
Tirthankar Ghosh

EBG Blueprint
For India Aviation

    The current situation of the world economy has not deterred the European Business Group (EBG) from showing its support for the Indian aviation sector. The EBG, formed ten years ago in India, provides a common platform where European Business can come together to discuss matters of mutual interest and have them represented in a broader way. The     EBG has played an active role in the Indo-EU Summit and is invited to present its views at an annual pre-budget meeting with the Indian Finance Ministry.
    The EBG’s position paper received by ACNFT recently pointed out, what it referred to as the “exploding growth in India’s aviation sector with expansion rates of up to 30 percent”.
    The paper goes on to mention that given the relatively low base of Indians traveling by air every year, the large number of carriers and the significant increases in capacity at both airports and the airlines, one should assume that double-digit growth in aviation would be here to stay for at least another decade.
    The paper then goes on to mention that some urgent reforms need to be undertaken by the government.
    Among them are: the need to expedite the increase in airport infrastructure; improve the connectivity of ground transportation to airports by road and rail; implement the ground handling policy within a clear, transparent and firm timeframe and provide equal treatment for all airports in India.
EBG mentions that the cargo terminals of the two Greenfield airports—the Bengaluru International Airport Limited and the Hyderabad International Airport Limited—are being asked to pay cost recovery charges by Customs as these are being treated as “new facilities” putting these (and any other new development) airports at a distinct disadvantage compared to other airports.
    The EBG also states, while European interest in India’s aviation industry remains strong, the failure to address these issues would severely affect the competitiveness of the industry and its attractiveness for foreign investors. Lastly, the paper highlights a few points for consideration by the government to ensure a way forward.
    Above all, EBG urges the government and the civil aviation ministry in particular to bring about an effective Open Sky policy on the ground clearing the way for an end to the plethora of taxes that the aviation sector faces.
    EBG also mentions that global alliances/partnership of airlines should be officially recognized by the Indian government agencies as these create efficiencies and reduce cost for airline companies and their customers.

     Afghanistan-licensed Safi Airways commenced scheduled flights June 15, between Kabul and Frankfurt by deploying a B767-200ER.
     The formerly Air China-owned aircraft is equipped with 18 biz and 196 eco seats. The plane can transport up to 14 tons of air freight depending on passenger loads and the number and weight of their luggage.
     “We calculate with 10 tons each flight in average as soon as the route has been established,” states Klaus Lederer (left) of GSA Aircargonet GmbH.
     On the maiden flight it was 2.7 tons that were lifted into the belly-hold compartments of the plane for carriage to Kabul.Cargo is a one way business into Afghanistan.
     Because of security reasons not a single box or package is allowed to be flown out of the Taliban terrorized central Asian state.
     Only exceptions permitted are personal effects, diplomatic goods and air mail, nothing else, confirms Claus Fischer, (right) Chief Commercial Officer of privately owned Safi.
     “We expect a substantial contribution by the cargo business to our overall turnover on this intercontinental route,” he said in an exclusive interview with ACNFT.
     According to GSA Lederer just about everything is flown into Afghanistan, be it consumer goods, machinery parts, medical instruments, automotive parts or supplies for the armed forces and the many civil foreign servants working in that country.
     “Frankfurt-Kabul is a highly interesting relation but it needs expertise to be successful on this specific trade lane and get access to this complicated market,” Lederer emphasizes.
     The Aircargonet manager knows exactly what he’s talking about because his former client was state carrier Ariana Afghan Airlines.
     Says Lederer:
     “Problem was their unreliability so you never could tell when their flights would arrive in Frankfurt.
     “This annoyed quite a number of our cargo clients.
     “Safi however, announced to be different and offer reliable scheduled services,” Lederer said.
     This view is confirmed by commercial manager Fischer who makes very clear that his airline intends to be a quality carrier that sticks to its announcements. “Service quality is going to be the big difference between us and Ariana, Pamir Airways, as well as Kam Air the other three Afghanistan-based carriers.”
     Main difference between privately owned Safi and their national competitors is the ICAO compliance Safi has achieved making it the first Afghan carrier to meet recognized international safety standards.
     Next step will be the IOSA audit that is supposed to happen this year, Fischer announces.
     “This will be our door opener enabling charter flights for the United Nations and for carrying UN officials as well as diplomats and their goods.
     Members of the United Nations are only officially permitted to fly on board of IOSA audited airlines while pursuing their diplomatic missions,” he indicates.
     These certifications could well turn out to be sort of a unique selling point for Safi.
     The newly introduced Frankfurt route will be served three times a week. In addition Safi offers scheduled flights between a number of Afghan cities and the Emirates (Dubai, Abu Dhabi).
     The operational base of Safi is Dubai but equipment and staff will have to transfer to Kabul after the carrier’s future headquarters is ready for moving in.
     According to Claus Fischer there are plans in the drawer for expanding the three aircraft comprising fleet (two B737-330s, one B767-200ER).
     “It’s undecided yet whether we will opt for Boeing or Airbus variants,” he said. Worth mentioning is that freighters are on the purchasing list as well but rank a decided second behind the rolling over and expansion of the airline’s passenger fleet.
Heiner Siegmund

Air Cargo News/ FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.      Here are updates from Twitter so far this week. To be added to this 24/7/365 service at no-charge contact: acntwitter@aircargonews.com June 17: LEJ and SVO service resumes tomorrow (June 18) after five year lull as Blue Wings launches A320 twice a week. Aeroflot opens SVO/DRS July 3 with A319s. June 17: Boeing has not announced a single airplane order at Paris Air Show. Report company is "defiant" as criticism over B787 delays mount. June 17: Asia Airfreight Terminal Hong Kong said tonnage numbers dropped 31% for first five months of 09-impacted in part by new Fedex hub in Baiyun, less than. June 17: At Paris Air Show Qatar Airways CEO Akbar Al Baker said QR could "walk away" from its 60 B787 contract if delivery delays continue. June 17: HOT Summer of Jade Cargo debut on new routes including Johannesburg Bangkok, Vienna and Tribilisi with three of the carrier’s B747-400ERFs.June 16: Swiss adds 2X daily A319s (ZRH-OSL 6/19) lifts Scandinavian commerce & “our trademark dedicated air cargo solution focus,” says Urs Stulz, Swiss Mgr. June 16: China Eastern (CEA) adds Kunming-Katmandu via B737 July 17. Service operates Tues/Fri/Sun. CEA via KMG-REP, HKT, KIX,SIN VTE, PNH & CCU. June 16: TNT Post Germany buys into Georg von Holtzbrinck, boosts letter delivery from 26 to 40% of all German households. June 16: NCA to save fuel adds 7.8 kg pallet nets from AmSafe. Airline also experiments with Nordisk Aviation lightweight pallets. June 16: At LeBourget, Airbus predicts drop of 25% in factory output over next two years without mass layoffs (for now). June 16: At Paris Air Show, Qatar Airways orders 24 A320 family Airbus aircraft worth $1.9 billion for delivery starting November 2009. June 15: The National Aviation Company (Air India) has slowed payment of June salary to its 31,000 employees 15 days due to severe liquidity crunch. June 14: Cargo dips more than 20% worldwide in 2009 so Boeing re-calibrates its crystal ball, says air cargo will be plus 5.4% to 2028. June 14: Another Dubious Award as Hartsfield Atlanta named Best Cargo Airport at Munich Air Cargo Europe. FlyingTypers 6/15. June 14: Agility Logistics (Kuwait) with $6.8 bn annual rev-$121 mill profit first quarter & 550 offices in 120 countries added 90,000 sq ft. at ORD June 14: Lufthansa Cargo's sales at 50% via 12 Partners. Agility won 2009 DLH Planet Award for satisfied customers, growth, market share & loyalty.

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Contact! Talk To Geoffrey Re: FlyingTypers 06.15.09   Hi Geoffrey,     Loved your editorial on awards.     We simply refused to play the game – when invited and our customers did wonder why we are not too bothered?     It is a complete scam- clearly tied to advertising spend.     To us any award that can be bought is not worth having. Name Withheld Dear Geoffrey,     InAvia Aviation Consultants is a company based in Germany serving both airports and airlines in commercial matters     We are also heavily involved in the air cargo business.     I love your comment in today's FT about the Air Cargo Europe award going to ATL and the Reality Checks!     You don't know how much I agree with you! With Best Regards, Thomas Stuenkel Managing Partner INAVIA Aviation Consultants GmbH St. Toeniser Str. 42 D-47918 Toenisvorst Germany www.inavia.aero Dear Name Withheld,     We have nothing against air cargo awards.     Flying Typers just thinks most big event awards are less than rewarding for among other things , the reason you mentioned.     Some people don't like that we take issue with air cargo awards.     But our we figure that our job is to survey the scene and tell it like it is.     We are hopeful that IATA Cargo or somebody will create better more transparent air cargo industry awards.     Meantime we will continue looking out for you—the industry stakeholder. Geoffrey