IndiGo wants to offer Wi-Fi in the sky; DoT to meet telecom operators soon

The DoT will create a separate category of such licences

The country’s largest airline, IndiGo, has shown interest in providing in-flight connectivity services to flyers on board, and has reached out to the department of telecommunications (DoT) on the issue.

Besides IndiGo, one of the leading satellite service providers also contacted DoT after the Telecom Commission cleared the proposal for in-flight connectivity services in Indian airspace on May 1.

According to sources, the DoT will meet telecom operators as well as officials from the civil aviation ministry in the next couple of days to chalk out a road map for proliferation of such services. Although no date has been set for the roll-out of in-flight connectivity services, the DoT is hopeful that the services will be available commercially within four months.

The DoT and the civil aviation ministry will work out the modalities, and licences will be awarded to in-flight service providers at an annual fee of Rs 1 initially. The DoTwill create a separate category of such licences. Service providers need to partner telecom operators and register with the DoT.

IndiGo did not respond to a request for comments till the time of going to press.

Since the proposal does not need Cabinet approval, the DoT has already started working on the regulatory framework and the eligibility criteria for in-flight service providers. The DoT was likely to garner more insights from operators and the civil aviation ministry, sources said.

In-flight connectivity is allowed in the European Union, the US and Australia, and over 30 airlines offer the service. According to industry watchers, the price for in-flight connectivity in India could be much lower than in other markets. Globally, charges range from $9.99 for data packs of 150 MB to $15.99 for 500 MB.

Most of the telecom operators Business Standard spoke to said they were waiting for the final guidelines before taking any decision on providing such services.

The government is not likely to intervene in the pricing as in the case of mobile tariffs. According to sources, the demand for allowing in-flight connectivity in India came from satellite telecommunications service providers, which are already offering such services in other regions. With the government giving them the go-ahead, they will form alliances with airlines and mobile operators to launch services in Indian airspace.

Bharti Airtel, the country’s largest mobile operator, has already joined the global Seamless Alliance to provide in-flight connectivity. Alliance members can provide automatic login and authentication to their customers on various devices. Airtel, OneWeb, Airbus, Delta and Sprint are the founding members of the alliance.

Full text: IndiGo says 'whistleblower' himself instigated assault, had to be sacked

IndiGo President Aditya Ghosh said he personally spoke to the customer and apologised to him the same day

IndiGo Airlines on Tuesday issued an apology and fired the staffer who shot the video in which an airline staffer is seen manhandling a passenger at Delhi's Indira Gandhi International Airport.

IndiGo President and Whole Time Director Aditya Ghosh said that the ex-staffer who is claiming to be the 'whistleblower' is the one who instigated the incident and prevented the customer from boarding the bus.

"Even while the investigation was going on we immediately suspended the involved employees," Ghosh said.

Watch : IndiGo staff manhandle passenger at Delhi airport 

In the video, Rajeev Katyal is first seen being stopped from entering a coach, then pulled back by a ground staff. Another airline employee is seen restraining the traveller.They then manhandled him and pinned him to the ground by his throat.The passenger fought back and fell to the ground in the melee. The incident occured on October 15.

Here is the full text of IndiGo President Aditya Ghosh's response to the incident:

Just wanted you to know the reality. I personally called and apologised to the customer three weeks ago. Not now. But on the very same night. Not once have we blamed the customer or justified the conduct of the employee. We immediately suspended them and terminated the errant employee.

The ex-employee who is claiming to the whistleblower is the one who was screaming at the customer and shouting Roklay Roklay Isay preventing the customer from boarding the bus. He was four years senior to the other two employees. And instead of acting maturely, he is the one who instigated the incident. He is the one who prevented the customer from departing in the bus. You can hear his voice in the first parts of the video. He was a cargo employee. He had no business being there. And had no business shouting at the customer. Under the code of conduct violation, this incident was investigated by the designated committee and stern action was taken against the staff. He is the exact opposite of what IndiGo’s customer service aims to be. (more)

Jet Airways joins SpiceJet, Vistara, starts variable pay to save wage bill

Plan covers 100 execs; fixed pay at 80-85%, rest based on staff performance, firm's profitability

Jet Airways is introducing 15-20 per cent variable pay component for its top management as it looks to save on its wage bill.

The Mumbai-headquartered airline has a higher cost structure than other listed domestic airlines and is undertaking cost control exercises to remain nimble. The variable pay scheme will be applicable to around 100 senior executives of Jet Airways and is expected to result in annual savings of Rs 25-30 crore, an airline source.

While the fixed salary component will be 80-85 per cent, the remainder will be linked to employee performance and airline profitability. The senior executives will also not receive salary increment this year.

A Jet Airways spokesperson did not offer immediate comments.

Some of Jet's peers already have a variable pay scheme in place. Vistara and SpiceJet too have variable pay for its senior management. Air India a productivity linked incentive scheme which was a variable pay out in mid-1990s but the same was discontinued in 2012.

Jet Airways has a staff strength of around 15,000 and had a wage bill of Rs 2,316 crore in the first nine months of FY 17. Employee costs rose 26 per cent on a year on year basis for the period. The airline has around 2000 pilots on its rolls whose salaries account for nearly half of the wage bill. Read more

Cabinet clears civil aviation policy; replaces 5/20 rule

Cabinet clears civil aviation policy, replaces 5/20 condition with 0/20 rule

Amid hectic lobbying, the Cabinet on Wednesday gave its approval for partial abolition of the 5/20 rule, which will enable new carriers like Vistara and Air Asia to start international operations sooner.

According to the Civil Aviation Policy, released by the ministry on Wednesday, the government has decided to scrap the minimum five years requirement. However, an airline will have to allocate 20 aircraft or 20% of their total fleet of aircraft, whichever is higher, to the domestic sector if they wish to fly overseas. This effectively means a carrier must have a minimum 20 aircraft in its fleet.

“This is to ensure that any new airlines starting business in India should essentially serve the remote parts of the country,” a ministry official said.

In an interview to Business Standard, Mahesh Sharma, Minister of State for Civil Aviation, had hinted at this proposal. “In place of 5/20, we can make it 3/10 or 3/12. We have also looked at options like 0/10 and 0/20,” he had said.

ALSO READ: We are looking at partial abolition of 5/20 rule: Mahesh Sharma

While proposing to liberalise India’s skies, the government had earlier kept proposed three different options to replace the rule: continuing the present norms, complete abolition from immediate effect and a credit-based system to replace it. At present, an airline requires five years of operations and 20 aircrafts in its fleet to go on international routes. Read more.

Markets remain under pressure; Indigo flies on debut

Markets are still reeling under pressure weighed down by technology, metal and oil & gas shares.

The possibility of a Fed rate hike in December has also dampened the investors’ sentiment. Markets had a knee jerk reaction yesterday to BJP’s loss in Bihar elections thus fearing that the key reforms may again get stalled in the winter session of Parliament, which begins end of November.

At 11 AM, the Sensex was at 25,950, down by 170 points while the Nifty opened at 7,853 levels, down by 63

Shares of Interglobe Aviation, the company that operates IndiGo airlines, made its debut today, listing at Rs 856, up 12 per cent.

The top gainers on the Sensex are Hero Motocorp, Bajaj Auto, M&M, Axis Bank  and Maruti, all up between 0.7-1.5% each

The top losers on the Sensex are GAIl, BHEL, Hindalco, Dr Reddy’s, and ONGC, all down between 1-4% each
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(updated 9:40 am)

Markets, extending their losses from yesterday, opened the session on a lower note tracking weak global cues as investors are wary of a possibility of the US Fed rate hike in December.

At 9:40 AM, the Sensex was at 26,018, down by 102 points while the Nifty opened at 7,877 level, down by 38

Interglobe,The broader markets are displaying a divergent trend with BSE Midcap index was down by 0.3% while BSE Smallcap index is up by 0.2%. The market breadth is positive with 669 advances against 459 declines on the BSE.

Also, market participants would be on an edge today as some of the notable companies are expected to announce their quarterly results today.

On the earnings front, Hindalco, NMDC, J Kumar Infra among others are likely to release their results today

GLOBAL MARKET

Asian shares are trading lower on prospects of an interest rate hike by the Federal Reserve in the month of December on the back of strong US jobs data indicating a strong US economy. Japan’s Nikkei, Hong Kong’s Hang Seng dropped between 0.5-1.2%. Meanwhile, China’s Shanghai Composite is ytrading flat with a positive bias.

SECTORS AND STOCKS

Sectorally, BSE Consumer Durables is up 1% while BSE Metal index is down 1.1%

The top gainers on the Sensex are Axis Bank, Tata Motors, Bajaj Auto, Hero Motocopr and ICICI Bank, all up between 0.6-1% each

The top losers on the Sensex are BHEL, Hindalco, Dr. Reddy’s Gail and ONGC, all down between 1.4-2.6% each.

Tata Motors has extended its gains from yesterday and has advanced nearly 1% on the Sensex on the back of a new proposed cost cutting plan of JLR.

ONGC has slipped again today on the back of a disappointing quarter. The stock is down by 2.7%

Hindalco is expected to announce the quarterly results today. The stock has dipped 2.5%

Extending its losses for the second day, Dr. Reddy’s has dropped another 1.7% on the back of the warning letter issued by the US Food and Drug Administration (USFDA)

Shares of Interglobe Aviation, the company that operates IndiGo airlines, will make their trading debut today on the bourses. Interglobe has fixed the issue price at Rs 765 per share .

JSW Steel’s crude steel production fell 2 per cent to 10.22 lakh tonnes in October this year.  The stock has dropped 0.5%

Nestle India is likely to remain in focus after Maggi returned to shop shelves in 100 cities on Monday, five months after the instant noodles brand was pulled out of the markets over safety concerns. The stock has reacted marginally and is up by 0.4%

Article Source: Business Standard