The Tribune, Chandigarh, India

	India Aviation 2010 Industry on flight to recovery Vibha Sharma Tribune News Service Hyderabad, March 4 The Indian aviation industry is poised to consolidate on the recovery it has seen in the second half of 2009 and a revival is clearly on the cards this year. The key of developing the market was revenue optimisation by adjusting capacity, improving efficiency and network expansion through global alliances. While in the short run, the industry was likely to continue making losses because of high fuel prices and increased borrowing costs, the long term picture was bright. Domestic and international passengers are expected to increase at annual rates of 20 per cent and 16 per cent, respectively, resulting in an overall increase of over 19 per cent per year. This prognosis was held out here today by Dinesh Keskar, president - Boeing India & chairman, Ficci Civil Aviation Committee, M Madhavan Nair, secretary, Ministry of Civil Aviation, Jerome Bonnafont, French Ambassador to India and Guru Malladi, Partner, Ernst & Young, at the second edition of the International Conference on Civil Aviation at ‘India Aviation 201,’ organised by Ficci and the Union Ministry of Civil Aviation. Keskar pointed out that the recent trends in domestic capacity adjustments by Indian carriers had improved the supply-demand equation. For three months in a row this year, the airlines was making profits. Optimisation of revenue, he say, was the key to achieving profitable goals. This would call for improving network and schedule quality. He emphasised that revenue needs to be leveraged. Furthermore one per cent increase in revenue equalled a 16 per cent reduction in maintenance cost or reduction in fuel price by three per cent. Nair suggested the creation of Aeropolis or airport city, houses five star hotels, restaurants, shopping complexes, conference centres and special high speed train connectivity to the airport to the main city centres. He said, Indian airports don’t have the potential to place India as an important international trade hub in the coming years but also to significantly develop the domestic air freight market. On the occasion, a ‘Ficci-Ernst & Young Knowledge Paper on Civil Aviation in India’ and a ‘SITA-CAPA White Paper on Information Technology in Indian Aviation’ were released. Bonnafont, while giving the European perspective, spoke of the possible gains from privatisation of national carriers and global network alliances.
	AI, GE ink pact Suresh Dharur Tribune News Service Hyderabad, March 4 The national carrier Air India today signed an agreement with GE Aviation for providing maintenance, repair and overhaul (MRO) services for the GEnx-1B engine. Under the GE Branded Services Agreement (GBSA), Air India will be licensed to perform maintenance and overhaul work on the GEnx-1B engine while GE will provide Air India with technical assistance, comprehensive material support and training. The agreement was inked during the ongoing India Aviation 2010, an international aviation conference and exhibition. Together, they will invest $90 million for the MRO facility at Mumbai. Air India would put in $70 million while the remaining amount would be pumped in by the American jet engine manufacturing company over the next seven to eight years. This will be GE’s second such MRO facility in the world. “Air India envisages a state-of-art facility catering to GE90 and GEnx engines, including a new engine test facility,” the chairman and managing director of Air India Arvind Jadhav said while announcing with GE Aviation Country director Nalin Jain. The GEnx-1B engine will power Boeing’s 787 aircraft. Air India has ordered 27 GEnx-1B-powered Boeing 787 aircraft. The facility will not only cater to all wide body planes of Air India, but also carry out third party work for customers across the globe. Jadhav said it would further advance Air India’s plans to become a global MRO service provider. He said if such engineering works were taken up at all places like Mumbai, Delhi, Kolkata and Hyderabad, Air India could earn Rs 3,000 crore to Rs 4,000 crore per year in two to three years. Air India has been overhauling jet engines for more than four decades. It has handled various jet engine models and has acquired expertise in overhauling jet engines at low cost. The present facility at Mumbai not only caters to the entire wide body aircraft of Air India but also carries out third party work for customers across the globe.
	EPF wage ceiling may go up The committee, which has also underlined the need for a separate pension division within the EPFO for benefit of pensioners, lamented nothing concrete has been done in this regard New Delhi, March 4 The Parliamentary Standing Committee on Labour, which has recommended an upward revision of wage ceiling under EPF scheme, today expressed displeasure over the Labour Ministry’s “unwarranted” delay in implementing it. “Such an attitude of apathy and indifference negates the very mandate to safeguard the interest of workers, the deprived and the disabled sections of the society,” it said in its action taken report tabled in the Parliament today. The committee, headed by Hemanand Biswal, had recommended raising wage ceiling under the Employees Provident Fund Organisation to Rs 15,000 from Rs 6,500 keeping present employment scenario in mind. The revision was last carried out in June 1, 2001. It felt the ministry was “either oblivious or pays scant regard to the constitutional mandate directing the state to strive to secure just socioeconomic order and secure a decent standard of living.” It was of the view that considering the “whopping contribution” accumulated with EPFO, the wage ceiling can be enhanced suitably by the Labour Ministry as per its recommendations. Further, the wages can also be revised periodically to safeguard the interest of the intended beneficiaries, it added. The committee, which had also underlined the need for a separate pension division within the EPFO for benefit of pensioners, lamented nothing concrete has been done in this regard even after passage of considerable time. It said its recommendation for setting up a specific grievance redressal cell as a makeshift arrangement till the time of setting up the pension division had not been implemented. It sought a time frame by which the proposed pension division would be functional. — PTI
	Shell out more on auto loans ICICI Bank, HDFC Bank to charge between 9.75-11 pc Mumbai, March 4 ICICI Bank and HDFC Bank today raised the lending rates for auto loans, in a clear signal that rates would harden in the coming days. HDFC and ICICI Bank also discontinued with their special home loan schemes, which offer lower interest (teaser) rate for the first few years of the credit period. An HDFC spokesperson when contacted confirmed to PTI that the lender was not continuing with the special offer which was valid only up to February 27. ICICI Bank also said it had hiked auto loan rates by up to 50 basis points. It withdrew the 8.25 per cent special home-loan scheme. The Reserve Bank had expressed displeasure at teaser rates as it discriminates existing borrowers against new ones. "The auto loans rates have been raised by 0.25-0.50 per cent depending on segment and tenor with effect from March 5," an ICICI Bank spokesperson said. With this hike, the lending rates for new auto loans will now be in the 9.75-11 per cent range. HDFC Bank hiked auto loan rate by up to 100 basis points. Industry experts said that the rate hike was largely prompted by signals communicated by the Reserve Bank in its last monetary policy review on January 29. The RBI hiked the cash reserve ratio or the mandatory amount banks have to keep with the RBI by 0.75 per cent to 5.75 per cent, absorbing Rs 36,000 crore from the system. Kotak Mahindra Bank and the group's car-loan financing arm also announced hikes in home and car-loan rates today. — PTI
	Ludhianvis fancy jet Manav Mander Tribune News Service Ludhiana, March 4 After being in the limelight for having the maximum number of Mercedes, Ludhiana will soon be known for the city with jet planes as well. Mustang, an entry level jet costing around $3.6 million, generated 40 queries in one day for jet ownership which is a testimony to the fact that Ludhianvis will soon be riding high in the sky. Planes will add another glitter to their already lavish lifestyle. “As many as 40 industrialists and jewellers showed interest in buying the jet. We are overwhelmed with the response. That is why we had showcased it here only”, Sanjeev Sethi, director, aviation Raymond, said. Seeing potential in the industrial town, Raymond Aviation chose Ludhiana to launch “My Plane Programme” here yesterday which provided city buyers an opportunity to see and evaluate jet ownership. It also provided an attractive proposition for buyers to own jet on a time-share basis. This special programme was held at Ludhiana Airport, Sanhewal. After holding their innovative programmes in metro cities like Delhi and Mumbai, Ludhiana was the next target of the company. “Ludhianvis’ affluence is known in the National Capital Region and their response has proved it once again,” said Sethi. He said this was the first time in India that jet ownership was being brought to the comfortable reach of buyers in other cities. “The Citiation Mustang is an entry level jet and provides an ideal platform for aviation enthusiasts to become jet owners. With this programme, the process of owning a jet in the country will be simplified,” he added.
	Milk, cereals push up food inflation New Delhi, March 4 Driven by higher prices of milk, wheat, rice and vegetables, food inflation rose marginally to 17.87 per cent for the week ended February 20. The food inflation in the previous week was at 17.58 per cent. On the annual basis, the prices of rice increased 10 per cent, wheat 14 per cent, pulses 35 per cent, onions 11 per cent and potatoes 28 per cent. The inflation in fuel, power light and lubricant group was 9.59 per cent, slightly lower compared with 9.89 per cent in the previous week. However, it is expected to surge significantly next week when the impact of the fuel price hike will be reflected in the index. In the Budget tabled last week, the government hiked customs duty on petrol and diesel to 7.5 per cent from 2.5 per cent while excise duty was raised by Re 1 on non-branded (normal) petrol and diesel. This saw the oil companies immediately hike prices. Beginning February 27, petrol prices rose by Rs 2.67 a litre and diesel by Rs 2.58 per litre in Delhi. The Finance Minister yesterday partly blamed the multi-level supply chain system for stoking prices of food articles in the country. — PTI
	NMDC FPO opens on March 10 New Delhi, March 4 NMDC today said its follow-on-public offer (FPO) would open on March 10 and closed on March 12, the price band of which would be decided by an Empowered Group of Ministers on Monday. The country's largest iron ore producer is coming out with its public issue of over 33 crore shares of face value of Re 1 each. The government is slated to divest 8.38 per cent stake in the mining gaint. The company will offer a discount of 5 per cent to retail investors and its employees over the issue price, which will be decided after the completion of FPO, it said in a public announcement. NMDC has reserved 35 per cent of the issue for retail buyers, whereas 50 per cent of shares are reserved for qualified institutional buyers, which include FIIs and mutual funds. The public issue of the state-run utility is based on the book-building process, where investors are offered a price band for buying the shares. NMDC's public issue will help the government to meet its divestment target of Rs 25,000 crore for the financial year 2009-10. UBS Securities India, Citigroup Global Markets India, RBS Equities India, Morgan Stanley India, Edelweiss Capital and Kotak Mahindra Capital Company are book running lead managers to the issue. — PTI
	Shoppers Stop to open 13 stores Tribune News Service Chandigarh, March 4 Shoppers Stop is going in for a major expansion. In the next 36 months, the retail giant is all set to open 13 stores across India. With this, the company will have 41 stores across the country. Talking to TNS here today, Gobind Shrikhande, CEO and president, Shoppers Stop Ltd, said with the retail scene in the country showing an upswing, they were on an expansion spree. The company has earmarked Rs 120 crore for this expansion. “We propose to open at least three stores by the end of the month - at Amritsar, Ahemdabad and Bangalore,” he said, adding that the store at Amritsar will be inaugurated tomorrow.