ASSOCHAM asks for bailout of Kingfisher Airlines

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) yesterday suggested a bailout for the grounded Kingfisher Airlines following the government's decision to rescue the ailing national carrier Air India, saying there is no difference in the financial woes of both the airlines. The suggestion comes within days of reports that LIC and the Employee Provident Fund Organisation (EPFO) snapped up the entire Rs 7,400-crore bond issue of the debt-ridden Air India, as per a PTI report.

“If Air India deserves to be given a bailout package, there is no reason why Kingfisher should be treated differently by banks and government organisations," D S Rawat, General Secretary, ASSOCHAM said in a statement.

Rawat's statement also comes days ahead of the November 30, 2012 deadline set by the bankers to the Kingfisher promoters to pump in fresh capital to the tune of USD one billion and table a comprehensive revival plan.

Sitting on a debt pile of over Rs 15,000 crore, including Rs 7,000 crore bank loans and payments due to various vendors and tax authorities, Kingfisher has not been operating since October 1 this year following a strike by its pilots and engineers over the non-payment of salaries.

Following the shutdown, the Directorate General of Civil Aviation had suspended its flying licence on October 19, 2012. “The circumstances under which both Air India and Kingfisher went down under are almost similar, largely emerging from demand slowdown, high cost of aviation fuel and other rising overhead costs," Rawat said.

However, some industry experts attribute the mounting losses and huge debt of the Vijay Mallya-owned Kingfisher to a flawed business model. As far as Air India is concerned, some parliamentary panels have attributed it's financial woes to factors such as giving away its profitable routes to private carriers and a flawed aircraft acquisition policy for the carrier.

Of the Rs 7,400 crore issues, LIC has agreed to subscribe to Rs 3,000-crore worth of non-convertible bonds while the rest Rs 4,400 crore worth bonds will be subscribed to by the EPFO. On its part, the government has announced Rs 30,000 crore bailout plan to revive Air India in April this year.

Air India offers stopover packages at Delhi airport

State-owned Air India is wooing passengers with several attractive offers, including a trip to Taj Mahal from its T3 terminal at New Delhi airport. The airline is offering stopover packages at competitive prices, including a visit to the Taj Mahal. Besides drawing more passengers, the latest effort also aims at promoting its T3 hub in the capital, which is being used by about 3,000 Air India's transit passengers daily. “The stopover package will enable passengers transfer-connecting on Air India flights over Delhi to experience the city, with a range of accommodation on offer to fit all budgets,” Air India said in a statement. Air India has established Delhi as its hub and it has designed its flight schedule in a manner that facilitates easy transfer connections at the T3, particularly from domestic to international flights and vice versa. The packages offer the facility of web-based hotel booking, airport/hotel transfers and sightseeing options in and around Delhi, Air India said. A range of hotels, from budget to five-star category, located in and around the airport having made available under various packages, including the hotel located inside T3 itself, it added. Besides, the stopover packages also offer 'day rates', which allows 'wash-and-change' facilities to the passenger at select hotels. In addition, it also offers overnight stay rates inclusive of airport pick-up, breakfast and taxes with option to upgrade room, extended stay, day-use rates for 'wash-and-change' facility (four/six hrs as per hotel rules), departure transfers, sightseeing as well as a day trip to the Taj Mahal, the airline said.

Ecotourism: Spreading its roots in India

Ecotourism in India is fast gaining prominence and more attention. All stakeholders of tourism industry are looking to cash in on the opportunities in this niche segment. The Centre and states are also gradually realising the immense potential of ecotourism, as India has all the ingredients required to be a world class eco-tourist destination write Arti Saggi and Lakshmi Vishwanathan

The thought process of today’s tourist has changed as he is aware of the hazards of harming the ecological balance. The ‘Green Laws’ of conservation has made people aware across the globe of how man and environment can live symbiotically for time to come and how ecotourism is the only way to maximise the economic, environmental and social benefits of tourism. Everyone is a stakeholder in the process and we clearly need to avoid our past shortcomings and negative impact that they have had.

In India ecotourism is gaining momentum. The government at the centre is already addressing this issue and is also promoting this concept in the country. Though the concept is new to the Indian travel trade it is catching on fast. In fact, Pacific Asia Travel Association (PATA) India Chapter’s Environment and Ecotourism Committee is currently working on procuring an approval from the Ministry of Tourism (MoT), to mention the organisations which have won national and international awards for good environmental practices or ecotourism on their website, along with links. The primary objective of this move is to encourage eco-friendly practices in the industry. Currently, there are many certified hotels and travel companies in India that practice eco-friendly measures. If this approval comes through, these organisations have a chance of being promoted as recognised eco-friendly promoters on the MoT website, thereby garnering not just Indian, but international exposure.

Commenting on the move, Mandip Singh Soin, Chairman, PATA India Chapter, Environment and Ecotourism committee said, “We have worked closely with MoT, on popularising ecotourism in the country and the Ministry has always supported the cause. If approved, this initiative will help the organisations garner higher visibility, thereby resulting in better business.”

The PATA India Chapter’s environment and ecotourism committee’s long term plans also include facilitating certification of ecotourism operators, lodges, hotels and organisations. Commenting from MoT’s point of view, Sanjay Kothari, Additional Director General, Ministry of Tourism, maintained, “The Ministry has always been actively promoting ecotourism in the country. As far as mentioning the names and links of reputed eco-friendly organisations on the website are concerned, we are yet to take a call on that front.” The India Chapter is hopeful that on grant of this recognition, more travel and hospitality partners would adopt eco-friendly measures

In addition, the centre earlier this year has decided to revise the existing ‘National Ecotourism Policy’. According to a highly placed source in MoT, “We will be soon formulating a new National Ecotourism Policy. Currently, the Ministry of Environment and Forests is working out the new guidelines. Once approved within their Ministry, the new guidelines will be incorporated in the current policy along with a review of the existing guidelines.”

The need to review the National Ecotourism Policy was spelt out by Ambika Soni, Union Minister for Tourism and Culture at a conference where she remarked that the existing National Ecotourism Policy needs to be revived in the light of the ongoing international debate on climate change.

“Often I come across complaints that our bio-diversity is being eroded further on account of adventure, wildlife and ecotourism. There is a genuine concern that adventure tourists are not only polluting the place, but have little regard for conserving the existing natural resources. Last year, when I took up the matter of reviving licenses of adventure tour operators with the Uttarakhand Government, these were the main issues that were highlighted by the Ministry of Environment of Uttarakhand,” said Soni.

Ministry of Environment and Forests is coming up with new forest based eco-tourism guidelines for revising the existing National Ecotourism policy. Currently, the recommendations made by the Tiger Task Force and other divisions within the Ministry of Environment and Forests are awaiting approval from the Ministry. Once approved, they will be sent to the Ministry of Tourism (MoT).

Rajesh Gopal, Inspector General of Forests and Member Secretary of National Tiger Conservation Authority, Ministry of Environment and Forests, said, “We are working on the guidelines to redefine the National Ecotourism Policy. There will be forest based ecotourism guidelines and recommendations on ecotourism in rural areas, which will help the local and ethnic belts to derive benefits from tourism. Currently, we have just put forth the recommendations. Once approved by the Ministry of Environment and Forests, the guidelines will be presented to the MoT. But, currently, everything is at an initial stage.” He further added, “By making new guidelines, unexplored areas can be brought under the tourism map of the country. If ecotourism practices are followed in restricted areas, then their potential can be harnessed for boosting tourism.”

Various states in the country, including the emerging ones in the toruism arena have made ecotourism as one of their main focus areas. There have been several initiatives ranging from creation of destinations cricuits, policies and Joint Ventures to promote and market this niche segment.

 

India will require 200 airports for general aviation by 2020: AAI

Looking at the burgeoning demand for air travel in India, V P Agarwal, Chairman, Airports Authority of India (AAI), said, “India would require 200 airports by 2020 for general aviation purpose.” He was speaking on the sidelines of the recently concluded CAPA (Centre for Asia Pacific Aviation) India Aviation Summit 2012. Elaborating on the subject, he said, “The growth in general aviation would benefit the aviation industry in Tier-II and Tier-III cities as a significant part of general aviation travel is focused on infrequently connected airports. By 2020, the Indian general aviation fleet is expected to reach 2000 from 680 today; growing at a Compound Annual Growth Rate (CAGR) of 13 per cent. The direct and indirect economic contribution of general aviation could be close to USD four billion per annum by 2020.”

Further he revealed that modernisation of 60 non-metro airports has been decided by AAI, out of which development of 35 airports have been undertaken. The modernisation work for 27 airports has been completed, whereas, work for airports like Khajuraho, Ranchi, Bhubaneshwar and Jaisalmer is expected to be completed by end of this year. Besides this, Raipur airport in Chhattisgarh is expected to be inaugurated by Pranab Mukherjee, President of India on November 7, 2012. Furthermore, planning is underway to start work for Goa, Vadodra, Imphal and Port Blair airports.

He stated that AAI has undertaken development of a greenfield airport at Pakyong in Sikkim with a target date of completion by June, 2013. Besides this, greenfield airports planned at Kohima in Nagaland and Itanagar in Arunachal Pradesh are also in process.

“India is one of the fastest growing economies globally with an average GDP growth of over 8.9 per cent in last five years. Aviation is an important part of national infrastructure and is one of the prime movers for economic growth and employment generation. Air transport has grown at twice the rate of GDP. For past several years the growth has been impressive with international passengers growing at CAGR of over 14 per cent and domestic at almost 22 per cent,” he added.

At present India has 454 operational and non-operational airports / airstrips, wherein, AAI operates 125 airports, which includes 14 international airports, 80 domestic airports, 12 custom airports and 19 other civil enclaves.

Dr K Chiranjeevi sworn in as Tourism Minister

Dr K Chiranjeevi was yesterday sworn in as the Minister of State with Independent Charge (I/C) for Tourism, Government of India. He replaces Subodh Kant Sahai, who recently tendered his resignation as Minister for Tourism, Government of India. Dr Chiranjeevi said that he will “shoulder the responsibility” to the best of his ability to justify the confidence reposed on him by the Prime Minister and the ruling party. The Minister was speaking to the media soon after the swearing-in ceremony at the Rashtrapathi Bhavan here.

Addressing a crowded press conference in Andhra Pradesh Bhavan in Delhi, Chiranjeevi said that India is a country of “incredible heritage” and “rich culture” and has the potential to attract far more foreign tourists. A cine-star-turned politician, Dr K Chiranjeevi is a member of the Rajya Sabha from Andhra Pradesh since April, 2012.