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Tag: mINISTRY oF cIVIL Aviation

High Court Hammers DGCA’s Reasonability For Airlines Excess Baggage Charges

[New Delhi]Delhi High Court Hammers DGCA’s Reasonability For Airlines Excess Baggage Charges
Delhi High Court today asked aviation regulator DGCA how the figure of Rs 100 per kg for checked-in excess baggage between 15-20 kgs was reasonable as was contended by it.
“You have not said what is the basis for the figure of Rs 100 per kg,” Justice Sanjeev Sachdeva asked.
“How do you call it reasonable? Why not Rs 75 or Rs 150,” the judge asked after Additional Solicitor General (ASG) P S Patwalia, appearing for DGCA and the Ministry of Civil Aviation, said the Rs 100 figure was chosen as it was “reasonable”.
ASG Patwalia, in response to the queries, also said the Director General of Civil Aviation (DGCA), as an expert body, was competent to arrive at the figure and if the airlines were aggrieved by it, they should have approached it.
He also said that only four airlines had approached the court, all members of the Federation of Indian Airlines (FIA), against DGCA’s regulation which came into effect from July 1.
As per the new regulation, airlines have been asked to charge Rs 100 per extra kg till 20 kg as against their current rates, ranging from Rs 220 to Rs 350.
Currently, all domestic carriers allow free checked-in baggage up to 15 kgs.
Only Air India allows free baggage up to 23 kg.
During the arguments, the ASG said the different rates charged for excess checked-in baggage by the airlines was discriminatory and warranted interference by DGCA.
The court, however, observed that discrimination would have to be seen vis-a-vis passengers and not airlines and asked what was the material considered by DGCA to come to the conclusion that there was discriminatory pricing.
The ASG said DGCA relied on complaints received by it from passengers to come to the finding relating to discriminatory pricing.
Patwalia also argued that DGCA had the power under the rules to regulate air tariff and it can regulate unbundled services, like selection of seats, booking meals etc, by way of its April 30, 2013 circular under which the services were unbundled and that circular has not been challenged.

Jayant Sinha Takes New Assignment in Civil Aviation Ministry

[New Delhi] Jayant Sinha Takes New Assignment in Civil Aviation Ministry
Learned Management Expert Jayant Sinha takes charge as Minister of State in Civil Aviation Ministry
Jayant Sinha took charge as Minister of State in the Civil Aviation Ministry today.
Shri Sinha is the BJP MP from Hazaribagh constituency in Jharkhand.
He was elected to the Lok Sabha in May 2014.
He was a Member of Parliament’s Committee on Subordinate Legislation and Standing Committee on Finance from 1st September 2014 to 9th November, 2014.
He took over as Union Minister of State for Finance on 9th November 2014, and remained in the position till yesterday, the 5th July 2016.
By profession Shri Sinha is Venture Capital Management Consultant and Hedge Fund Manager.
He is a global expert on entrepreneurship and technology. He has published articles in leading magazines (Harvard Business Review, Business Today, etc); and newspapers (Financial Times, Economic Times, etc).

Govt Formulating Norms Of Ticket Cancellation’Fee’For Indigo Like AL

[New Delhi]Govt Formulating Norms Of Ticket Cancellation Fee For Airlines
Apart From The Airfare Capping, Civil Aviation Ministry is working on new norms for ticket cancellation+baggage+ denied boarding,
Largest airline by market share IndiGo and government-run Air India hiked its cancellation charges, Directorate General of Civil Aviation had sought an explanation from the carriers over the issue.
A total of 46,833 passengers were affected due to flight cancellations, delays and denied boarding, involving a compensation of Rs 1.33 crore during April.
Civil Aviation Minister Ashok Gajapathi Raju Said that the Government is working on new norms with respect to ticket cancellation fee amid concerns that airlines have been levying high charges on passengers.
“There are a lot of suggestions we are working on,” Minister today said in a response to a query on whether the ministry is formulating norms with regard to ticket cancellation charges and related issues.
He was speaking here on the sidelines of a function, where Airports Authority of India (AAI) National Skill Development Corporation and National Skill Development Fund entered into an agreement for skill development in aviation sector.
.Recently, domestic air passengers’ body APAI wrote to the ministry and the DGCA about issues such as adequate compensation to fliers in the eventuality of their flight getting cancelled or delayed.

Modi Govt to Soon Announce Mechanism To Cap Airfares

[New Delhi]Modi Govt to Soon Announce Policy to Cap Airfares
Airfares usually go up by around 40-50 per cent during the festive seasons and vacations. The airlines had faced severe criticism when the fares had even touched as high as Rs 50,000 for a one way ticket between Bengaluru and Delhi during the Chennai floods in December last year.
The fares had gone up significantly during the recent Jat agitation as well.
Central Government is now finally going to announce a mechanism soon to curb high airfares and unveil a new civil aviation policy to address all major issues affecting the sector.
The policy may be placed before the cabinet within two weeks.
As per Sources ,Prime Minister Narendra Modi is very keen to have an upper cap on the ticket price and government would announce the measures while taking views of the airlines also
Civil Aviation Minister For State Mahesh Sharma told Agency in an interview.
Aviation regulator DGCA had last week said that discussions need to be held with airlines before any decision on fixing upper cap on ticket prices.
On the civil aviation policy, which is hanging fire since for a long time, the Minister said majority of the issues were sorted out.
New Aviation Policy policy may address all the pending issues including the
5/20 norm,
regional connectivity scheme and the
ground handling issues.
Under 5/20 norm, a domestic airline cannot fly overseas unless it has completed five years of operation on local routes and has a fleet of 20 aircraft.

Parliamentarian Swamy Knocks Doors Of HC Against AirAsia Licence

[New Delhi,] Parliamentarian Swamy Knocks Doors Of HC Against Air Asia Licence
BJP leader Subramanian Swamy today moved the Delhi High Court seeking “immediate suspension” of flying licence granted to airline AirAsia India alleging that it had obtained it through “fraud”.
The application, also seeking contempt proceedings against three officials of AirAsia for allegedly filing false counter affidavit in the court, was mentioned before a bench of Chief Justice G Rohini and Justice Jayant Nath, which is hearing Swamy’s plea
Swamy has contended that Company’s one of the officials had made false statement in his counter affidavit filed in court while the other two had acted with the alleged intention of “misleading” the Foreign Investment Promotion Board (FIPB), Ministry of Civil Aviation (MoCA) and DGCA into grant of approvals, permits and permissions.
Malaysia’s largest budget-carrier AirAsia had set up the joint venture with the Tata Group and Telestra Tradeplace to launch the regional airline in India.
In his PIL, Swamy has challenged the clearance granted to the airline on the ground that according to the policy, foreign investment is only permitted for an existing airline but AirAsia India was not an existing carrier.

At Last ,Center Accepts 5/20 Rule ‘Anarchic’ And Decides to Change

[New Delhi] At Last Center Accepts 5/20 Rule ‘Anarchic Now Decides to Change.It May Clear The Way For New Airlines To Fly Abroad .Present rule entails that an airline can fly to international destinations only if it has served within the country for five years and has a 20-aircraft fleet.
Terming the 5/20 rule which allows Indian carriers to fly abroad as “anarchic”, Civil Aviation Minister Ashok Gajapathi Raju today said he was trying to change it so that new airlines can connect with foreign destinations.
Raju said in Lok Sabha the government wants more Indian airlines to fly to foreign destinations but as long as the 5/20 rule is not changed, they cannot fly abroad.
Hitting At Previous Govt Raju Said It is a fact that 5/20 rule came from a particular Cabinet at a particular point of time. To my mind, it is an anarchic type of thing. It prevents the Indian registered airlines to function.
But as long as that rule is there, we have to follow it.”I am trying to change the rule and if I have my way, it will happen,” he said during Question Hour.
Raju’s reply came when Congress member Shashi Tharoor said the Kerala government had tried to set up a state airline called ‘Air Kerala’ to cater to the vast amount of traffic of Keralites going to Gulf countries since private carriers were exploitative, but could not do so due to the 5/20 rule.
“It is our duty to see that people are not exploited. In fact, airfares before 1994 were controlled by the Government.
The Minister said,.Airlines before that had to apply and take government approval. In 1994, the Act was repealed by Parliament,”
BJP member R K Singh too joined Tharoor saying private airlines often exploit passengers taking emergency situation which government must check.
“Whenever there is an emergency situation, the airlines hike the fare and exploit people. This is nothing but exploitation and if the government keeps watching this happening then what is the use of having a government,”
The Minister said government has analysed the entire issue and found that the high side of the fares in the total ticketing is about less than two per cent.
“So, we realise that the prices of tickets have come down in most routes, particularly where the competition is more.
He said capacities and growth in the country have been going up. If the growth is stifled, the problem will not be resolved.
Minister Said “With regard to emergencies like Chennai floods, Srinagar floods or the Jat agitation and all that, we do see these things coming up and we give advisories to the airlines and some of the airlines do respond,”

4 Member Committee To Probe Jet Airway’s Gear Collapse

[New Delhi,Mumbai]4 Member Committee To Probe Jet Airway’s Gear Collapse
A four-member committee under the Aircraft Accident Investigation Bureau (AAIB) would probe the landing gear collapse of a Jet Airways Boeing 737 plane at the Mumbai airport last month.
As many as 127 passengers on board Jet Airways B737-900 aircraft from Delhi had a narrow escape when its main landing gear collapsed while taxiing after it landed at the Chhtrapati Shivaji International Airport in Mumbai on March 3.
As per Notification,The committee,headed by AAIB’s director of Aircraft Engineering Department Amit Gupta, has been asked to submit its report within the six months,

SpiceJet,Following Indigo,Hikes Ticket Cancellation Charges

[New Delhi] SpiceJet,Following Indigo,Hikes Ticket Cancellation Charges
Another Budget Carrier Spice Jet also Hikes Ticket Cancellation Charges
Budget carrier SpiceJet has also increased its ticket cancellation charges by over Rs 350,
IndiGo Has already announced a flat charge of Rs 2,250 even as the DGCA deadline for airlines to submit their response on the issue ended today.
The revised charges for cancelling a domestic ticket now stands at Rs 2,250 while for an international air ticket, it is fixed at Rs 2,500, SpiceJet said in a communication to travel agents.
The new cancellation charges are effective from April 7,
Significantly, the move comes amid the civil aviation regulator–Directorate General of Civil Aviation (DGCA)–seeking an explanation on the reasons for a flat cancellation fee and a body of air passengers Air Passengers Association of India (APAI) threatening to approach fair trade regulator, CCI for an investigation into the alleged cartelisation.
The Gurgaon-based airline had earlier been charging a fee of Rs 1,899 for cancelling a domestic ticket and Rs 2,349 for an international air ticket.
Most of the domestic carriers, including IndiGo, had increased the cancellation charges by a significant amount in February.
DGCA had written to the airlines, including the regional ones, asking them to explain the reason for increasing ticket cancellation fee, which in some cases now is almost equivalent to the air fares charged for a short-haul journey.
IndiGo had done away with the slab system in cancellation fee and announced a flat charge of Rs 2,250.
The aviation regulator had asked the airlines to file their response by today.

State Run Air India To Spread Wings In Africa+Scandinavia

[New Delhi]State Run Air India To Spread Wings In Africa+Scandinavia
Air India aims to provide point-to-point connectivity to African and Scandinavian regions, where it currently does not operate, besides enhancing services on existing routes,
As per Air India Chairman and Managing Director Ashwanai Lohani , In the immediate future, the government-run airline will launch services to Washington, DC from the national capital, , adding, the national carrier is also looking at taking its services to African and Scandinavian countries.
Air India plans to expand further in the US, where it already operates in four places — New York, Chicago, San Francisco, and Newark, Lohani said.
In the last four months alone, Air India has added two international destinations –San Francisco and Vienna in its network.
It is all set to launch five-times-a-week services to the Austrian city Vienna from here from tomorrow. In Europe, the airline currently flies to seven cities including London, Paris, Milan and Franfurt.
The airline currently operates to 35 international destinations across the US, Europe, Australia, Far East and South East Asia and the Gulf.

Vistara Airline to Vistar -Daily Chandigarh-Delhi Flights

[New Delhi] Vistara Airline to Vistar -Daily Chandigarh-Delhi Flights
Tata-SIA joint venture Vistara today said it will commence flight services to Chandigarh from next month as part of its summer schedule.
Vistara will operate daily direct return flights to Chandigarh from Delhi and Hyderabad, starting May 2,
With the addition of Chandigarh flight, Vistara’s network will cover 16 destinations across India, City Of Rock garden is the carrier’s sixth destination in North India after Jammu, Srinagar, Delhi, Lucknow and Varanasi.
The new service will also offer convenient connections via Delhi between Chandigarh and Bengaluru, Pune, Mumbai, Bhubaneswar and Ahmedabad,
The Delhi-based airline has already announced the launch of its services to Srinagar, Jammu, and Kochi from this month.
With addition of these services, the total number of weekly flights offered by the airline will increase to over 400,
Vistara had recently inaugurated its signature lounge at T3 at Delhi International Airport.