Neha Jain: http://indianairlinesnews.blogspot.com/27

1. Indian Airlines is history as 'IC' code formally merges with 'AI'
In the centenary year of the country's civil aviation, Air India is formally emerging as the single entity for domestic and overseas operations with the 'IC' code of the erstwhile Indian Airlines being cast to history from midnight Saturday. "Henceforth, all national and international flights, numbe

ring nearly 100, will fly under the 'AI' code, thereby making the 'IC' code history," the National Aviation Company of India, the holding arm, of the brand, said.
"This was much awaited. It is a historic moment. Tonight's migration into AI code strengthens our resolve to emerge as the country's singular national carrier," said an elated chairman and managing director Arvind Jadhav.

"I am happy to share that 'we are one'," he said, while appreciating the work of Air Indians who contributed to the successful migration to the new state-of-the-art passenger service system.

The move comes against the backdrop of 100 years of civil aviation in India. On Feb 18, 1911, Henry Piquet flew his Humber bi-plane from Allahabad to Naini, six miles (eight km) away, in Uttar Pradesh, carrying first official airmail, marking the beginning of air transport in India.

In December 1912, the Indian State Air Services in collaboration with UK based Imperial Airways introduced the London -Karachi - Delhi flight, the first international flight to and from India.

The integration also became inevitable after the decision taken in 2007 to merge Indian Airlines with Air India, along with their low-cost subsidiaries like Air India Express and Alliance Air, with the corporate entity formally called the National Aviation Company of India.

Jadhav said the migration to a single code 'AI' will bring in a lot of benefits to the passengers and they would be able to enjoy seamless travel all over the world.

"More so because this migration would also facilitate Air India's entry into Star Alliance - thus giving Air India passengers access to 1,160 airports and 181 destinations," he said.

All Air India flights departing after 00.01 hour Feb 27 will be with the new mapped AI flight number, said the company spokesperson, adding that the migration to the new system began in the early hours Saturday and was completed by the afternoon.

During the migration period, Air India had made special arrangements for emergencies with regard to new bookings, changes, frequent flyer redemption, refunds and ticketing.

According to analysts, the move will help the cash-strapped national carrier which suffered losses to the tune of Rs.5,551 crore in 2009-10, in addition to a hit of Rs.7,189 crore in the previous year, to reduce some of its administrative costs.

"The airlines would benefit by reduced administrative costs which were arising out of billing, ticketing and other services," Amber Dubey, director, aerospace and defence, KPMG, told IANS.

He said that a fast entry into the Star Alliance would also help the airline and benefit its passengers.

"This step would ensure a faster entry of the carrier into the Star Alliance, this was one of the prerequisites to joining the alliance. AI's passengers will benefit out of
this move," Dubey said.

The Air India spokesperson said all efforts are being made to keep every stakeholder in the loop.

The chairman and managing director not only wrote a detailed message on the migration process to all employees, but also ensured that customers, travel agents, global distribution system providers, airline partners and airport partners were kept informed.

Meanwhile, a dedicated number of personnel have been put on the job to send SMS messages and e-mails to passengers to keep them informed about the change.

The management has also increased the number of executives at airports to assist passengers, put up standees about change in flight codes and distributed tens of thousands of colourful leaflets at all airports to keep the passengers updated.

2. Air India to start daily direct flight to Melbourne from Delhi

NEW DELHI: After a delay of about 6 months, Air India will be launching its direct flights to Melbourne from here.

"The Civil Aviation Ministry has approved our request and granted Air India the traffic rights to operate seven services per week on Delhi-Melbourne sector," an Air India spokesperson said.

Melbourne would be the 34th international city on the list of Air India destinations.

The national carrier was to start Delhi-Melbourne daily direct flight from the winter schedule starting October last.

It has been a long-standing demand of the Indians, including many students studying and settled in Australia, the spokesperson said.

Air India is planning to add more international destinations to its operations and in Australia, it is eyeing Melbourne.

3. Budget 2011: Provision for equity infusion into AI likely
NEW DELHI: Provision for the much-needed equity infusion into ailing Air India and a proposal to liberalise fund-raising capability of the Airports Authority of India may figure in the 2011-12 budget to be presented in Parliament on Monday.

The two proposals, if accepted, would act as a big relief to both the public sector units which have been facing financial and liquidity crunch, sources said.

Air India is facing serious difficulties in meeting several of its liabilities.

It is confronted with an adverse cash-flow situation primarily because of high fuel prices, rise in costs on account of interest payments on aircraft purchases, depreciation costs and wage bill, besides high costs of leasing planes and maintenance.

Keeping this precarious situation in mind and the Civil Aviation Ministry's proposal for further infusion of funds, the government may provide another tranche of Rs 1,200 crore in the budget tomorrow, the sources said.

If granted, this would be the third tranche of equity infusion, with the government already having given Rs 2,000 crore to the airline in two tranches in 2010 and in January this year.

Air India has incurred losses to the tune of Rs 1,791.38 crore in the first quarter of 2010-11, apart from the losses of Rs 5552.44 crore, Rs 5,548.26 crore and Rs 2,226.16 crore respectively in 2009-10, 2008-09 and 2007-08.

Regarding the state-run airports body, which is modernising several metro and non-metro airports across the country, the sources said the AAI has for long been pressing the government to raise funds by issuing infrastructure bonds, a proposal that was rejected by the Finance Ministry over a year ago.

The borrowing norms might be liberalised in the upcoming budget to give the AAI enough flexibility to raise resources from the market, the sources said.

One of the prime reasons for AAI's cash crunch is the continuing default by several airlines on payments for all services at airports, including landing, parking and navigation charges.

If the 2011-12 budget proposes to liberalise borrowing norms, it would help AAI to implement plans to borrow Rs 900 crore this year and Rs 800 crore next year to fund the upgradation of almost a dozen out of a total 35 non-metro airports.

4. Centre asks Ker govt to reduce sales tax on aviation fuel
Kochi, Feb 27 (PTI) Civil Aviation Minister Vayalar Ravi today appealed to the Kerala government to reduce sales tax on aviation fuel, which was the highest in the country.
"The Kerala government should reduce sales tax on aviation fuel," he said after inaugurating the corporate headquarters of Air India Express, the low cost subsidiary of Air India, which was shifted from Mumbai to Kochi.
He also requested the Cochin International Airport Ltd management to reduce their parking and handling fee.
"The shifting of AIE headquarters should not be seen as an opportunity to charge more, but opportunity to help people of the state. Otherwise it would be difficult to operate the service," the minster said.
The decision to shift the AIE headquarters was a major step to help improve the performance of Air India. The entire operation of AIE would be guided and operated from here.
Of the 25 lakh travellers in AIE, 14.5 lakh are from Kerala, he said, adding that efforts would be made to introduce a flight to Dammam when the summer schedules are announced in March-April. AIE operates mainly to various Gulf destinations besides Singapore and Dhaka.
The AIE''s hangar will become operational by April first week where both domestic and foreign airlines can be repaired, he said.
To provide accommodation facilities for the staff who would shift to Kochi from Mumbai, talks would be held with Housing Board authorities to purchase flats, Ravi said.
Air India Charters Ltd Chairman Arvind Jadhav said AI and AIE would be separate entities and the Air India Express would be given all freedom to choose its network.
AIE currently has 21 aircraft and four will be added soon. Of the 21 aircraft, three each are based in Kochi and Thiruvananthapuram, and four at Kozhikode.
AIE today operated 189 flights on its network. AIE will commence operations to Dammam by next month. Similarly flights from Kochi and Thiruvananthapuram to Dammam are also on the anvil by May this year.

NEHA JAIN

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