Growing airline fleet in India bucks Covid distress trend

Induction of 44 new aircraft by India’s largest airline IndiGo — the highest delivered to any single airline by French manufacturer Airbus in 2020 across the globe — and a three-fold increase in number of dedicated air freighters to 20 ensured that India’s fleet strength number bucked the trend of aviation industry’s poor performance in a year marked by the Covid-19 pandemic. As per information provided in the Economic Survey for 2021-22, tabled before Parliament on Friday, the total fleet strength of Indian carriers increased to 713 as of November 2020, compared to 669 as of March 2020.

This was in variation with most major indicators such as passenger traffic, cargo tonnage, deployed capacity and airline revenues, which buttressed the fact that 2020 was the worst year for the aviation sector in history.

Induction of 44 new aircraft by India’s largest airline IndiGo — the highest delivered to any single airline by French manufacturer Airbus in 2020 across the globe — and a three-fold increase in number of dedicated air freighters to 20 ensured that India’s fleet strength number bucked the trend of aviation industry’s poor performance in a year marked by the Covid-19 pandemic. As per information provided in the Economic Survey for 2021-22, tabled before Parliament on Friday, the total fleet strength of Indian carriers increased to 713 as of November 2020, compared to 669 as of March 2020.

This was in variation with most major indicators such as passenger traffic, cargo tonnage, deployed capacity and airline revenues, which buttressed the fact that 2020 was the worst year for the aviation sector in history.

31/01/21 Pranav Mukul/Indian Express

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Indian DGCA removes type restrictions on ACMI deals

The Indian Directorate General of Civil Aviation (DGCA) has removed restrictions governing the aircraft types that local carriers can wet-lease in for a period of three months, extendable by another three months, the Times of India has reported.

Thus far, Indian carriers have only been permitted to wet-lease aircraft which already have an Indian type certificate or, alternatively, they had to secure such a type certificate before the beginning of the contract. This put up significant obstacles to any potential deals involving aircraft hitherto not operated in India - such as smaller turboprops and jets as well as seaplanes.

The loosening of regulations may facilitate the operation of many thinner routes under the government's UDAN/RCS subsidisation scheme, where smaller, non-mainstream, aircraft types are often used.

However, the DGCA still restricts the circumstances under which Indian airlines are permitted to wet-lease in capacity.

"Wet, damp or dry lease is only permitted in emergency situations by DGCA. Situations cover unexpected grounding of aircraft of an existing (airline, charter operator), aircraft under unscheduled maintenance or checks or any other unforeseen circumstances. Such leases are not permitted for capacity or route expansion of an air transport (passenger) service except for cargo operations," the new regulation stipulates.

29/01/21 ch-aviation

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Turbulent aviation sector awaits near-term support in Budget 2021

The COVID-19 pandemic hit the Indian aviation sector that was already going through a  turbulent phase. From reduction of high taxes and levies, the aviation industry is hoping for near-term support from the government in the upcoming budget 2021-22.

The aviation industry was anticipated to provide 98 million jobs and generate $5.7 trillion in GDP by 2036, according to a pre-Covid forecast. But, then came the pandemic that put the aviation sector in a state of uncertainty. 

Now, the airlines are trying to regain their feet, as the domestic airlines across the country carried 55.6 million passengers from January to November 2020, nearly 58 per cent lower from what they carried in the same period last year, according to the data compiled by aviation regulator DGCA.

ICRA Ltd, a credit rating agency, in its report in December had anticipated a net loss of Rs 21,000 crore this fiscal year for Indian airlines due to travel restrictions. The industry will require an additional funding of Rs 37,000 crore from FY21 to FY23 to recover from the losses and debt. 

Aviation experts believe that the government has to hand-hold the sector, which is battling to recover from high cost and debt burden. Measures such as lower tax on jet fuel and reduction in multiple operational charges, including parking, airport and landing, are the need of the hour, as per industry experts. Jet fuel, also called aviation turbine fuel (ATF) takes close to 30 per cent-40 per cent of the total cost of an airline. 

ATF prices in India are 45-50 per cent higher compared to the international markets.

The Confederation of Indian Industry (CII), in its pre-budget wishlist sought an increase in the baggage allowance for purchase from duty-free shops in India. The suggestion is to hike from Rs 50,000 to Rs 1 lakh.

Kanika Tekriwal, CEO & Founder of JetSetGo Aviation, a Delhi- based private jet operator and manager, told THE WEEK that the upcoming budget should focus on extending lower rate withholding taxes that was decreased to 25 per cent of the standard rate. The demand is to extend it for another year till the market is fully recovered as this will increase liquidity in the hands of the company. "Another area to focus is on lowering the income tax rate on travel companies as it is very difficult to survive with a 30 per cent corporate tax rate due to the damage the aviation industry has gone through because of the pandemic. Also, the GST on the entire travel industry should be restricted to 5 per cent be it travel by private charter or commercial flights to decrease the costs of people travelling who do not get GST benefits and hence, a boost for the economy," she said.

Experts also feel that GST should be levied on fuel because a major expense for any aviation company is on fuel on which they pay VAT and excise that adds up to 35 per cent.

30/01/21 Pradip R Sagar/The Week

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Boost for pilot training schools as IOC to produce aviation gasoline

 Mumbai: Indian Oil plans to locally produce aviation gasoline, a move that would enhance its availability and bring cost relief to pilot training schools in the country.

Currently there are 32 flying training schools and the government wants more such institutions to come up within the country. While airlines operate jet engine Airbus or Boeing planes which run on aviation turbine fuel, training schools operate small piston engine aircraft which run on aviation gasoline or Avgas.

Avgas rates are more than twice those of aviation turbine fuel and all of it is imported at present.

Indian Oil (IOC) is now looking to produce Avgas domestically given the government’s thrust for pilot training and as a part of its own Atmanirbhar Bharat initiative.

An Indian Oil spokesperson said the company is currently evaluating plan for domestic production of Avgas. Details regarding project cost would be finalised upon completion of the study. The company declined comment on potential cost savings and said these would be known only after evaluation is complete.

According to sources, Avgas is likely to be produced at IOC’s Paradip refinery from next March. A source there could be potential to export the product to other countries in Asia as well as currently most of the Avgas production is in Europe and the US.

At present Avgas consumption in India is around 2500 kilolitres and IOC’s annual turnover from its sale is Rs 30 crore. Apart from flying schools, defence services and few government departments operate aircraft for non commercial use.

29/01/21 Aneesh Phadnis/Business Standard

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DGCA yet to decide on the return of 737 MAX to service, says Boeing India

New Delhi: Boeing today said that the Directorate General of Civil Aviation (DGCA) has to decide on the return Boeing 737 MAX back to service, aircraft manufacturer Boeing said today.

"We are working with the DGCA and (other) global regulators to return Max (737Max) to service," Salil Gupte, president at Boeing India, said on Thursday.

The statement comes after US and European aviation regulators have cleared the aircraft, which have been grounded since March 2019, following two fatal crashes.

On a question on whether planes cleared by these regulators will be allowed to operate to India since India has even banned any operation of these aircraft, Gupte said that the aviation regulator will decide on it.

The DGCA is likely to conduct its own due diligence before allowing the grounded Boeing 737 Max aircraft to return to Indian skies.

"Boeing did pour (its) commitment and brought 737Max simulator in June/July, set it up in Noida. It will be ready to train pilots at the time of DGCA's ungrounding of Max," Gupte said.

28/01/21 Mihir Mishra/Economic Times

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Time to move from generics to specifics in aerospace manufacturing: Civil Aviation Secretary

Mr Pradeep Singh Kharola, Secretary, Ministry of Civil Aviation, Govt of India said the state governments must play an important role in aerospace components manufacturing. State policies on investment, taxation, and labour attract manufacturing units from all over the country.

Speaking at the Aero India 2021- 13th Biennial International Exhibition & Conference on ‘Making India Self Reliant in Aerospace Manufacturing’, organized by FICCI and Ministry of Civil Aviation, Mr Kharola said that it is now time to move from generics to specifics as far as aerospace manufacturing is concerned. Drones are an important part of the aerospace industry. Our young entrepreneurs can capitalise on the various reforms being brought in by the government, he said.

Mr Kharola said that the aerospace industry ranges from R&D and design, manufacturing to MRO. “The MRO (Maintenance, Repair, Overhaul) is a fledgeling industry, and we are working towards making it more vibrant and sustainable and to ensure that India emerges as the MRO hub of the region,” he added.

Elaborating further, Mr Kharola said that with fast-expanding skies, most aircraft need to be sent abroad for maintenance and repair. “This is the lowest hanging fruit that needs to be plucked. We are working on certain reforms- the tax policies have been rationalised. As a result, our MROs are on a level playing field,” he added.

Mr Kharola said that manufacturing that was thought to be an exclusive domain of the public sector, now has private players moving into India into the components manufacturing sector. This is a sector that needs to be strengthened further and this is the sector where the actual growth will come from. It can grow monumentally, he said.

We have a large defence requirement- the defence offset policy wherein a favourable environment has been created for investments to be made in India and this requirement will only increase. “We need to sit together with stakeholders and identify opportunities to get the required synergy to sustain the aerospace sector,” he noted.

Ms Sumita Dawra, Additional Secretary, Department for Promotion of Industry and Internal Trade, Govt of India said that the Indian aviation industry has witnessed robust growth over the years. It plays a key role in connecting Indians across remote corners of the country. “The Indian civil aviation industry has become one of the world’s most lucrative aviation markets. There are huge opportunities in the Indian aviation industry for investments. The world is focused on Indian aviation and business opportunities- from manufacturers, tourism boards to global businesses,” she said.

Further, Ms Dawra said that India will need a roadmap to boost manufacturing of the critical components. “India is open to partnering with the manufacturers of the world under Make in India and be a critical partner of the supply chain of aerospace manufacturing. The DPIIT has also been working on creating a national single window system which is projected to be launched by mid-April 2021, which will be a convergence point for clearances for investors. We have also put together and launched a GIS-enabled land bank which is in the public domain now,” she added.

“We have also undertaken an exercise to rate industrial parks of the country to facilitate investors in making their investment choices,” noted Ms Dawra.

28/01/21 ELE Times.com

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How India's civil aviation sector is shaking off the stress of the pandemic

The Covid-19 crisis has challenged the very survival of the aviation industry globally during the past one year. International Civil Aviation Organization (ICAO) estimates a loss of $370 billion gross passenger operating revenue for the year gone by. As per IATA (International Air Transport Association), a decline of about 60 per cent in world total passengers during 2020 has been observed and the airline industry alone is expected to have lost $118.5 billion.

Surprisingly, no airline in India was grounded and all have shown resilience and survival instinct so far. 

Read why and how >>

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Boeing Gets US Approval to Offer F-15EX to India

New Delhi: Boeing has received a licence from the US government to offer its F-15EX fighter jet to the Indian Air Force, a senior executive said on Thursday.

Boeing will compete with Sweden’s Gripen and France’s Rafale among others for the Indian Air Force’s plan to buy 114 multi-role aircraft to replace its Soviet-era fleet.

Ankur Kanaglekar, director, India Fighters Lead, Boeing Defense, Space and Security, told reporters discussions on the F-15EX had taken place earlier between the two governments.

“Now that we have the marketing licence it allows us to talk to the Indian Air Force directly about the capability of the fighter. We have started doing that in a small way,” he said, adding conversations were expected to gather pace during the Aero India show next week.

India and the United States have built close defence ties, with the Indian military buying over $20 billion worth of weapons in the last 15 years.

Lockheed Martin is also pitching its F-21 fighter to the Indian Air Force, offering to build the plane in the country to win the deal estimated to be worth more than $18 billion.

Boeing is bullish on India for both its defence and commercial aviation businesses, even as the COVID-19 pandemic has hit demand for air travel, forcing airlines to first get their finances in order before ordering new planes.

28/01/21 Aditi Shah/Wire

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Can the Budget help India's aviation sector?

It has been a tough year for India’s aviation sector. 

Hit hard by the Covid-19 turbulence, it quickly went into a tailspin early in March 2020, with the sector seeing zero passenger movement for almost two months. Since then, the government has gradually raised the scheduled flight capacity, even as India remains the second-worst-hit Covid-19 country in the world. As of January, the government has allowed 80 percent of the capacity to be used by airlines, after starting out with 33 percent capacity at the end of May 2020 when it lifted restrictions following a lockdown. 

While companies did pivot, and move towards movement of cargo to stay afloat during the period, the year had been largely lacklustre for the sector. This year, Indian airlines are expected to post a net loss of Rs 21,000 crore following travel restrictions amid the Covid-19 crisis, according to ratings agency ICRA, and will also require additional funding of Rs 37,000 crore from FY21 to FY23 to recover from the losses and debt.   

IndiGo, the country’s largest airline by market share, had reported revenues of Rs 2,740.96 crore in the quarter between July and September in comparison to Rs 8,105 crore, a nearly 70 percent fall in revenues. SpiceJet, the country’s second largest airline, meanwhile, reported revenues of Rs 1,054 crore, as against Rs 2,845 crore in the same period. 

“The debt levels will remain high for the industry and are estimated to be range-bound at around Rs 50,000 crore (excluding lease liabilities) in FY21 and FY22, with the industry requiring an additional funding of Rs 35,000-Rs 37,000 crore over FY21 to FY23,” Kinjal Shah, vice president, ICRA Limited, said in a statement.  

With capacities returning to normal, the government is now expected to end caps on fares that were extended until March this year. Alongside, the sector is also expected to see significant shifts, particularly with ownership changes. Jet Airways has found new owners, while the Tata Group is expected to take over AirAsia’s business, and is also a frontrunner for taking over Air India. “The Indian airline market has always had huge potential for airlines due to its size, but profitability has remained elusive,” airline consultancy company CAPA said in a statement in January. “On the domestic front, strong competition and excess capacity growth have hindered financial returns, and on the international side, overseas airlines have been more successful than local airlines in tapping into this market.”  

That apart, CAPA also reckons that the country's airlines could likely see further consolidation, leading to two players dominating the sector, while the acquisition of Mumbai airport and Navi Mumbai airport by Adani Airports could also result in a similar situation.  

For now, the industry could certainly be looking forward to some financial help, a demand that had been put forward as early as May last year, and reduction in levies and taxes in the immediate future to help improve operations. That means, among others, the lowering of taxes on ATF (aviation turbine fuel) and reducing other levies like airport charges, parking and landing and navigation charges. ATF accounts for about 40 percent of the costs. 

28/01/21 Manu Balachandran/Forbes

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Domestic air travel in India to return to pre-Covid level later this year; int'l by late 2023: Boeing

New Delhi: American aerospace major Boeing on Thursday said India and other emerging markets, especially in SE Asia, will drive economic growth globally in the long term and that domestic air travel in India has seen a much speedier recovery during the pandemic world than most other countries. It estimates domestic air travel here to return to pre-Covid (2019) levels later this year while international travel could do so by late 2023, depending on global travel restrictions based on the pandemic situation.

“The overall (air travel) demand will double in India by 2030. While robust economic growth, a rapidly growing middle class population and investment in infra will contribute to India’s airline growth, there are some headwinds too. These include financial health of airlines, a factor globally and here too, fuel price and currency (exchange rate),” Boeing India president Salil Gupte said.

India’s domestic air travel in passenger terms is currently back to 60% of pre-Covid levels. This has been fuelled mainly by pent up demand for visiting friends and relatives. Business travel here is expected to pick up faster than in other parts of the world, the US major feels.

“Passengers are returning to fly again. India has seen its air cargo market on narrow body aircraft explode during the pandemic with the carriage of vaccines and PPEs. Additionally, growth of e-commerce here is also contributing to the growth in air cargo market and this trend will continue,” Gupta said.

Boeing is in talks with the Indian Directorate General of Civil Aviation (DGCA) to get approval for the B737 Max to fly again. It has set up a simulator for training Max pilots at a facility in Noida near Delhi after that nod comes. The US and European regulators have approved the return to service of the Max. In India, financially frail SpiceJet is currently the only airline that has Max in its fleet and on order.

“We are working with each regulator and each customer airline globally (for Max return to service) according to their requirement and their timelines. We are in touch with the DGCA to ensure they have all the information required for this to happen,” he said, while declining to comment if the required corrective work and modifications — hardware and software upgrades — on the 13 B737 Max of SpiceJet in India has begun.

Asked if a foreign airline from a country where Max has been allowed to fly again can operate this aircraft for flights to India, Gupte said: “Airlines that plan to do so will have to discuss with the DGCA. That decision will be taken by the DGCA nad has been discussed with them.” India, senior aviation officials say, is in “no hurry and will take a decision of Max return service after considering all aspects in totality.”

28/01/21 Saurabh Sinha/Times of India

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Delivered most planes to India in 2020: Airbus

New Delhi: India has seen among the fastest revival of domestic air travel globally, with only China ahead of it, after countries started allowing these flights by following Covid protocol. Thanks to this, Airbus says it delivered the highest numbers of aircraft — 57 — to Indian carriers in pandemic 2020, the European aerospace major’s (India & south Asia) president and MD, Rémi Maillard, has told TOI.

“Scheduled domestic flights here were suspended for two months from March 25 to May 25. Domestic air travel now back to 60% of pre-Covid level. No other region, except China, has seen that kind of swift recovery,” he said, while adding that he is “cautiously optimistic” about the industry which is “not yet out of the woods and is still bleeding cash.”

“A number of issues need to be taken care of (in India) like taxation and infrastructure. The pandemic will lead to people preferring to travel direct between India and rest of the world (something which was done largely by transiting via nearby mega hubs in the Gulf and southeast Asia). India has a huge domestic market that can reconfigure the contours of international air travel to and from the country in favour of Indian carriers if the required steps are taken in terms of taxation and infrastructure,” he said.

While Airbus has no plans to have a final assembly line in India — China has one, — the aerospace major says it is firmly committed to the make in India plan. “We are hopeful that India will contribute significantly technologically to the next-gen zero emission hydrogen-powered aircraft Airbus is working on.”

In pandemic 2020, Airbus had delivered 566 aircraft (wide plus narrow bodies) to 87 customers — 34% below its all-time high of 863 in 2019. Its Indian customers got over 10% came of those planes with IndiGo inducting 44 A320/21neos and the remaining 13 going to Vistara, AirAsia India and GoAir. “We are in discussion with some startup airlines in India for aircraft (for aircraft orders),” he said.

America’s Delta and China Southern were delivered 30 and 22 aircraft last year, respectively. While they took a mix of narrow and wide and bodies, Indian carriers took only single aisle A320 and A321neos. Airbus had delivered 566 aircraft (wide plus narrow bodies) last year to 87 customers — 34% below its all-time high of 863 in 2019 — of which 10% came to India.

27/01/21 Saurabh Sinha/Times of India

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Aviation & home ministries to decide on further opening of international passenger flights

New Delhi: The government has asked the aviation ministry to decide on “further opening up of international air travel of passengers” in consultation with the home ministry (MHA). The Covid guidelines issued by MHA on Wednesday that will be effective from February 1 has empowered aviation authorities to jointly take a call on this issue in consultation with it.

Schedule international flights were suspended on March 23, 2020, due to the pandemic. Since then, India has been allowed Vande Bharat Mission flights to many places and has formed air bubbles with over 20 countries.

International air travel is happening on both VBM and air bubble arrangements for allowed categories of travellers. Bubbles are being created with more countries like Russia and talks are on with Singapore. All-cargo international flights are allowed and the DGCA approves flights on a case-to-case basis.

Scheduled domestic flights were suspended for two months on March 25, 2020. They were allowed to resume on May 25, 2020, and at the moment airlines are allowed to deploy 80% of their pre-Covid levels of domestic operations. Air traffic within the skies (in terms of passengers) is back at 60% of pre-Covid level.

27/01/21 Saurabh Sinha/Times of India

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Pandemic offers challenges and opportunities to air ambulance industry

The ongoing COVID-19 pandemic presents both challenges and opportunities to medical consultancies and air ambulance businesses in Cambodia and other parts of Southeast Asia.

The Kingdom is home to many foreign-headquartered firms such as Medical Air Service and Global Air Rescue, in addition to a few home-grown companies that offer medical consultancy and air ambulance services.

In an industry where competition is already very stiff, the pandemic has brought with it unprecedented problems to tackle. Lockdowns and border closures make it hard for air ambulance and related businesses to facilitate the transfer of patients from country to country.

Dr Indravina Tan, executive director of VIP Air Ambulance & Charter Flight (VAAC), agrees that the pandemic has posed a serious challenge to her business.

Established by Tan, Dr Choun Molyka and businesswoman Khek Khemrath in June 2020, VAAC is one of the native medical consultancy and air ambulance businesses in the Kingdom. It currently offers worldwide air ambulance service, worldwide charter flight service, ground ambulance service, visa and COVID-19 support documentation, as well as consultancy-medical travel/tourism.

“The business still survives. We have a number of loyal clients that trust our service. We are also building our local and international connections,” she pointed out.

Since it started operating, VAAC has facilitated the transfer of Cambodian and foreign patients to hospitals in Thailand, Singapore, Hong Kong, Malaysia, India and other countries. British, Taiwanese, Singaporean and Spanish nationals are among its clients.

At the same time, Tan described the current health situation as an opportunity for them to grow.

“It creates a challenge for us, while giving us the opportunity to grow. I am not only speaking about clients, but also in the growth of our skills in saving patients, in our working processes and in our connections. It is not easy to transport clients/patients at this time, but this challenge gives us the opportunity to show to our prospective clients what we are able to achieve and  what our competitors cannot,” she stressed.

27/01/21 Jose Rodriguez T. Senase/Khmer Times

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Rafale makes Republic Day debut; here's what you need to know

Apart from Biotech's COVID-19 vaccine tableau and women officers gracing the Republic Day celebrations at Rajpath, Rafale fighter aircraft was another star attraction at this year's Republic Day parade. One Rafale with 2 Jaguar deep penetration strike aircraft and 2 MiG-29 air superiority fighters flew at a height of 300 metres and speed of 780 km/hour.

Here's what you need to know about Rafale jet on its R-day debut >>

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Indian aviation veers toward non-metros in December, 13 cities see traffic better than pre-COVID levels

December has seen air passenger traffic touch a new high in at least 13 cities, with numbers higher than pre-COVID-19 levels.

All the 13 are tier- 2 and 3 cities, underlining the recent trend in Indian aviation, where passenger traffic has picked up better in smaller destinations than in the metros. The list includes Gorakhpur, Prayagraj, Ludhiana, Belgaum and Srinagar.

This is an improvement from November when six cities saw a year-on-year improvement. This is based on data from the Airports Authority of India.

"Domestic airline operations in December 2020 continued the gradual streak of improvement and stood at 57 percent of pre-COVID levels (v/s ~49 percent in November 2020)," analysts Swarnendu Bhushan and Sarfraz Bhimani of Motilal Oswal had said in a recent report.

"We reaffirm that optimism over the vaccine could certainly result in increased flying confidence. Also, the reopening of physical offices would require migrant employees to fly back to their job cities," they added.

Hindon and Pathankot airports witnessed among the highest growth rates, with passenger traffic increasing by 41.6 percent and 28 percent, respectively. Both the cities feature on regional routes. While Hindon is connected by Star Air and Air Heritage, Air India's unit Alliance Air flies from Pathankot.

The reverse migration had helped the domestic aviation get back to its feet when flights resumed in May 2020. The busiest routes were those connecting metros to smaller cities such as Patna, Varanasi and Srinagar. Since then, the trend has sustained, even though the traditionally busy routes such as Delhi-Mumbai and Bengaluru-Mumbai have regained some of the lost ground.

26/01/21 Prince Mathews Thomas/Moneycontrol.com

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Two IAF women pilots break glass ceiling, script history at R-Day parade

New Delhi: Two IAF women officers broke the glass ceiling on Tuesday by becoming the first women pilots to participate in the Republic Day parade — one at Rajpath and the other over Rajpath.

While Flight Lieutenant Bhawana Kanth, 28, became the first woman fighter pilot to take part in the R-Day parade as she was part of an IAF tableau that showcased mock-ups of an light combat aircraft, light combat helicopter and a Sukhoi-30 fighter plane, Flight Lieutenant Swati Rathore got the honour to be the first woman to be part of the flypast over Rajpath as she flew a Mi-17 V5 helicopter in a formation of four choppers.

Currently posted at an airbase in Rajasthan, Ft Lt Bhawana Kanth flies MiG-21 Bison fighter jets, the same aircraft that was used by Wing Commander Abhinandan Varthaman to chase and bring down an F-16 of Pakistan during the India-Pakistan face-off in 2019. Along with Avani Chaturvedi and Mohana Singh, Kanth was inducted into the IAF as the first woman fighter pilot in 2016. On May 22, 2019, Ft Lt Kanth became one of the first three women fighter pilots to qualify for day-time combat missions on a fighter aircraft.

26/01/21 Suendra Singh/Times of India

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Clouds over aviation sector? Domestic air travel still way below pre-COVID level, says data

New Delhi: Domestic aviation traffic is yet to reach pre-Covid levels, after seven months of resumption of domestic flights.

Data of airports disclose that the number of domestic passengers in December was 43 per cent less than the corresponding period in 2019.

Similarly, aircraft movement in December was nearly 30 per cent less than 2019.

Mumbai airport, one of the busiest in the world, saw 12,777 aircraft movements in December — a fall of 37.4 per cent from the previous year — according to data from the Airports Authority of India.

This was 27.8 per cent less in Delhi and 39.4 per cent in Chennai. Domestic flights resumed with restrictions on May 25, 2020, after the lockdown of two months, with nearly 30,000 passengers. Numbers went up gradually along with the lifting of restrictions.

Data from aviation regulator DGCA disclose that occupancy of airlines or the passenger load factor (PLF) of major commercial airlines was 66-78 per cent in December, around the same recorded previous month, but way below the 80-92 per cent in the same period in 2019. IndiGo’s PLF was 71.5, Air India’s 66.9 and GoAir’s 66.3.

Jitender Bhargava, former Executive Director of Air India and author of ‘The Descent of Air India’ said, “Business meetings are not taking place like they did earlier. They are meeting mostly through video conferencing. Family and friends are not travelling because nobody is sure if you would get infected or not. Leisure travel is virtually absent because of the fear of travelling. A lot of people have faced lost jobs. There are many factors.”

To attract passengers, IndiGo offered all-inclusive fares on domestic flights starting at Rs 877.

25/01/21 Kumar Vikram/New Indian Express

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To meet global requirements, IAF transport planes to get satellite tracking system

Chandigarh: With the aviation sector worldwide switching over to a new generation, highly accurate satellite-based aircraft positioning and tracking system, the Indian Air Force is also modifying some of its transport aircraft with the new navigational aid.

The new equipment, called the Automatic Dependent Surveillance-Broadcast (ADS-B), is a satellite-based system that replaces the current ground-based secondary surveillance radar network. Some countries have already made ADS-B capability mandatory in aircraft now being registered in or operating within their airspace.

A senior Air Force officer said initially the IAF’s fleet of 12 C-130 Super Hercules would be upgraded with the additional avionics package. Besides retrofitting the hardware, processors and antennae, the work would also integrating the ADS-B with the aircraft’s existing navigation suite and mission computer.

24/01/21 Vijay Mohan/Tribune

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Boeing commits to deliver commercial planes that fly on 100% sustainable fuels

New Delhi: Boeing is setting an ambitious target to advance commercial aviation's long-term sustainability, committing that its commercial airplanes will be capable and certified to fly with 100% sustainable aviation fuels by 2030. Boeing has previously conducted successful test flights replacing petroleum jet fuel with 100% sustainable fuels to address climate change's urgent challenge.

According to the Air Transport Action Group, the US Department of Energy, and several other scientific studies, sustainable aviation fuels reduce CO2 emissions by up to 80 per cent over the fuel's life cycle with the potential to reach 100 per cent in the future.

Sustainable aviation fuels are mixed directly with conventional jet fuel up to a 50/50 blend - the maximum allowed under current fuel specifications.

To meet aviation's commitment to reducing carbon emissions by 50 per cent from 2005 levels by 2050, airplanes need the capability to fly on 100 per cent sustainable aviation fuels well before 2050, the announcement said.

"Our industry and customers are committed to addressing climate change, and sustainable aviation fuels are the safest and most measurable solution to reduce aviation carbon emissions in the coming decades," said Boeing Commercial Airplanes President and CEO Stan Deal.

Boeing has been a pioneer in making sustainable aviation fuels a reality, partnering globally with airlines, industry, governments, and research institutions to expand limited supplies and reduce fuel costs. Boeing worked with airlines, engine manufacturers, and others to conduct biofuel test flights starting in 2008 and gained approval for sustainable fuels in 2011. In 2018, the Boeing ecoDemonstrator flight-test program made the world’s first commercial airplane flight using 100% sustainable fuels with a 777 Freighter, in collaboration with FedEx Express.

24/01/21 Akarsh Verma/India Today

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Domestic flights explained: Why airlines are flying fewer routes despite govt allowing more capacity

Despite the government allowing 80% of scheduled flight capacity to be operated on domestic flights, Indian airlines are running their operations at a significantly lower capacity. 

Read why >>

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India is working on fifth generation warplanes: Chief of Air Staff

Air Chief Marshal Air Chief Marshal Rakesh Kumar Singh Bhadauria said on Saturday that eight Rafale aircraft had arrived in India and three were expected to arrive by the end of this month. The Air Chief was speaking at a press conference after the conclusion of the Indian and French Air Force ‘Exercise Desert Night-21’ in Jodhpur.

He said the Indian Air Force, in collaboration with the Defense Research Development Organization (DRDO), has launched a fifth-generation fighter aircraft program and plans to include some sixth-generation capabilities in it.

“Our current approach is to incorporate the latest technology and sensors into fifth-generation aircraft,” Vadoria said.

He said, “We started work on the fifth generation aircraft a little late. So the technology and sensors of the time would be integrated with the fifth generation fighter jets.” “It’s been done and the current practice itself is the result of a desert night,” Vadoria said.

23/01/21 Chandan Sen/News Tree

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Civil aviation ministry bats for coronavirus vaccines for aviation staff

Mumbai: Airline and airport staff in India, too, could get vaccinated on priority like their counterparts in Dubai and Singapore.

While the Karnataka government has already included airport employees in the state in the list of frontline workers for Covid-19 vaccination, the civil aviation ministry has also initiated steps in this regard.

"The civil aviation ministry has written to the Ministry of Health and Family Welfare to add in the guidelines and issue directions to the concerned," a senior official said.

Airline and airport staff who are having interface with passengers & handling cargo would be given the priority.

Currently, doctors, nurses, and all hospital staff are being administered the Covid-19 vaccines across India. Over a million doses have already been given in the first week of vaccination.

Railway employees including station masters, engine drivers, ticket checkers, etc too have been selected for vaccination and their list is being compiled for the exercise.

Industry bodies have asked the government to vaccinate aviation staff on priority basis.

23/01/21 Aneesh Phadnis/Business Standard

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What is the nationality of a child born on an airplane?

What is my nationality? I was born in India, so my nationality would be Indian. It is rather an easy question to answer for most of us but most of us are not born 1000 feet above the ground, between borders of different countries or over some water body.

Sounds confusing? Here is an example-- A pregnant lady goes into labor in an aircraft flying from India to the USA and while passing over the Canadian border she delivers a child on the plane.

Read what will be the child’s nationality >>

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India eases rules for getting new type of aircraft

New Delhi: India has simplified the process of getting new types of aircraft as it opens its skies to flying machines not seen here commonly earlier like seaplanes and four-seater planes.

The Directorate General of Civil Aviation (DGCA) has removed the requirement of giving type acceptance of aircraft for short term wet leasing (hiring with operating crew) of aircraft in a bid to improve the ease of doing business in this crippled by Covid sector.

“Wet leasing of foreign aircraft under any exigency is permitted for a limited period of three months, which is extendable for another three months. Type acceptance of an aircraft type was mandatory for import and registration of aircraft in India, (including) for short term leasing of foreign aircraft by Indian operators. This requirement has been removed,” a senior DGCA official said.

Under the subsidised regional connectivity scheme, India is opening up new routes that will require small aircraft, seaplanes and choppers. The change, brought about by amending the civil aviation requirement for “criteria for leasing of aircraft by Indian operators,” is aimed at simplifying leasing of those types of planes not seen here earlier or commonly.

The amendment does not change the maximum age requirement of 18 and 25 years for aircraft being brought in for passenger transportation and cargo operations, respectively.

“Wet, damp or dry lease is only permitted in emergency situations by DGCA. Situations cover unexpected grounding of aircraft of an existing (airline, charter operator), aircraft under unscheduled maintenance or checks or any other unforeseen circumstances. Such leases are not permitted for capacity or route expansion of an air transport (passenger) service except for cargo operations,” the amended rule says.

However, the DGCA can give exemption from the maximum age condition for bringing in aircraft. Fo instance, SpiceJet wet-leased an almost 50-year-old 15-seater DHC-6 Twin Otter seaplane from Maldivian Aero, the country’s national airline, last October for operating between Ahmedabad’s Sabarmati riverfront and Sardar Vallabhbhai Patel’s Stature of Unity in Kevadia.

Following PM Modi’s direction, Airports Authority of India is developing water ports. The Centre had last year approved subsidised flights from six water airports that include Guwahati riverfront, Nagarjuna Sagar, Shatrunjay Dam and Umrangso reservoir under the third round of ude desh ka aam nagrik (Udan) scheme.

21/01/21 Saurabh Sinha/Times of India

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Beyond the data: The changing nature of India’s air travel demand

With the vaccine distribution underway in India, air travel demand in India has been trending upwards. Notwithstanding travel bubble arrangements, the international skies continue to be closed and the rise in demand has mostly been in the domestic market. The Indian government regularly publishes the latest aviation figures and these reflect more passengers taking to the skies. The government imposed restrictions on flight capacity have been gradually eased. Airlines have been adding flights and frequencies.

Domestic air passenger numbers doubled in the period from June 2020 to August 2020 and then doubled again three months later. 

Read more >>

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Vaccine to Vacation: Inoculation drive to pump up airline sector

New Delhi: India's aviation sector is set to become a major beneficiary of the massive anti-Covid vaccination programme which has re-ignited the confidence of the travellers.

Market insiders have cited that the commencement of the inoculation drive has raised travellers' optimism, which will not only boost air travel, but also the entire hospitality value chain.

Consequently, industry players like ixigo have seen a surge in demand and search queries.

"We are already seeing a renewed sense of optimism among the travellers in the wake of the vaccine roll-out. Demand and search queries for travel are slowly increasing, while domestic travel is on the road to a strong recovery," said Rajnish Kumar, Co-founder and CTO, ixigo.

"On the international front, we are still at 40 per cent of pre-Covid range in terms of bookings due to the current country restrictions. A widespread and effective distribution of the vaccine will be critical to get the international travel numbers back to normal," he added.

India launched the biggest vaccination drive in the world on January 16. The programme is backed up by the country's comparative advantage of having the largest vaccine manufacturing capacity in the world and a rich experience of mass inoculation drives against polio and measles.

"The pick up in leisure as well as business travel is dependent on the improvement in consumer sentiments, which in turn is dependent on the wide availability of a vaccine," said Kinjal Shah, Vice President, ICRA.

India's airline industry was heavily battered by the pandemic's onslaught. It is now gearing up to deploy 100 per cent of the pre-Covid capacity.

22/01/21 Rohit Vaid/IANS/Daijiworld

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Airlines Offering Steep Discounts to Augment Cash Reserves, Bring Back More Capacity

Fare wars induced deep discounting has reappeared in India's aviation sector, as airlines seek to augment cash reserves, consolidate market share and bring back more capacity. The first shot in this war of extremely low prices was fired recently with most airlines commencing their sales offers. The development comes around a year since Covid-19 lockdown devastated the sector.

Industry insiders, however, now believe that the roll-out of anti-Covid-19 vaccination programme will give a boost to air travel.

Besides, some of the travel period offered under these schemes are beyond the current expiry of the fare cap imposed by the Centre.

IndiGo's Chief Strategy and Revenue Officer Sanjay Kumar said: "Low fares always helps stimulate the demand for the travel period far out and works as a part of airline strategy."

"These sales stimulate traffic among extremely price sensitive customers and helps airlines meet overall objectives."

The latest passenger traffic data from the sector regulator DGCA indicate that the growth in passenger volumes is not yet adequate enough for a revival in the airline sector.

22/01/20 News18

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Total outstanding dues of major domestic airlines to AAI rise to Rs 137.16 crore

The total outstanding dues of major domestic airlines to the Airports Authority of India (AAI) as of January 1 stand at Rs 137.16 crore, CNBC-TV18 has learnt. AAI charges airlines for using air navigation services, landing, parking among other facilities.

The highest pending dues are of SpiceJet and GoAir at Rs 33.74 crore and Rs 33.13 crore, respectively, sources said. While SpiceJet is making daily payment of Rs 60 lakh to settle the outstanding amount, GoAir made the latest payment to settle dues on November 25 of Rs 90 lakh.

GoAir and SpiceJet have been on cash and carry mode since August 11 and August 1, respectively.

It is important to note that GoAir had submitted a two-step plan to settle dues whereby it was to start making regular payments since October 2020 but it seems like that has been delayed a bit, sources said.

In fact, both GoAir and Alliance Air have not been making any payments to AAI to settle the pending dues. For Alliance Air, the regional arm of Air India, the total dues stand at Rs 12.22 crore, of which Rs 10.14 crore are dues up to June 2020 and Rs 2.08 crore are for the period with effect from July 2020.

AirAsia India is believed to have settled its dues up to June 2020 and its current dues to AAI stand at Rs 4.09 crore.

National carrier Air India is making payment of Rs 25 lakh daily to AAI on working days and its total dues stand at Rs 50.38 crore, of which Rs 4.32 crore are for period before July and Rs 46.06 crore are for the period with effect from July 1.

Its subsidiary Air India Express has cleared past dues up to June 2020 but its dues of the period starting July 2020 stand at Rs 3.59 crore.

India’s largest airline IndiGo and full-service carrier Vistara are the only two airlines which have cleared their dues up to June 2020 and current dues as well.

21/01/21 Anu Sharma/CNBC TV18

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Ex-Desert Knight 21: Rafale to roar over Jodhpur skies during Indo-French air exercise

Jodhpur: The Indian Air Force has deployed its Rafale, Sukhoi and Mirage 2000 combat jets besides other key assets in a five-day mega air exercise with French air and space force that begins near Jodhpur on Wednesday. The Indian Air Force (IAF) said its deployment at the 'Ex-Desert Knight 21' will also include IL-78 flight refuelling aircraft as well as airborne warning and control system (AWACS).

"The French side will participate with Rafale, Airbus A-330 Multi-Role Tanker Transport (MRTT), A-400M Tactical Transport aircraft," it said, adding around 175 French personnel will be part of the exercise.

The IAF deployment in the exercise will include Mirage 2000, Su-30 MKI, Rafale, IL-78 flight refuelling aircraft and the AWACS.

The drill is taking place at a time the IAF has been keeping all its frontline bases across the country in a high state of operational readiness in view of the Sino-India border row in eastern Ladakh.

"The exercise is unique as it includes fielding of Rafale aircraft by both sides and is indicative of the growing interaction between the two premier air forces," the IAF said in a statement.

"As the two detachments commence their air exchange from January 20 onwards, they will put into practice operational experience gained across terrains and spectrums and endeavour to exchange ideas and best practices to enhance interoperability" it said.

20/01/21 PTI/India TV

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Business travel has structurally changed: IndiGo CEO

United Airlines, Air Canada, US Airways, and Air Sahara were Ronojoy Dutta’s stamping grounds, before taking over as chief executive officer of InterGlobe Aviation, which owns IndiGo, in January 2019. Since then, it hasn’t been clear blue skies for the 68-year-old: the airline’s promoters fought and Covid-19 stalled air travel. But Dutta now sees tailwinds emerging. Edited excerpts >>

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Government extends bid deadline for Pawan Hans by a month to February 18

New Delhi: The government has extended the preliminary bid submission deadline for buying Pawan Hans by a month till February 18. The Department of Investment and Public Asset Management (DIPAM) had in December invited bids for strategic sale, along with transfer of management control, of helicopter service provider Pawan Hans. The date for bid submission was January 19.

The deadline has now been extended to February 18 in view of the "prevailing Covid-19 situation and consequent logistical challenges faced by Interested Bidders," DIPAM said in a notice.

The government owns 51 per cent stake in Pawan Hans, while Oil and Natural Gas Corp (ONGC) holds the remaining 49 per cent. ONGC has decided to offer its entire shareholding in the company for sale along with the government stake.

Pawan Hans was incorporated in October 1985 as a public sector undertaking to primarily provide helicopter services for the exploration activities of ONGC and to India's northeast.

As on July 31, 2020, Pawan Hans' total manpower was 686, with 363 regular and 323 contractual employees.

For 2019-20, the company reported a net loss of Rs 28 crore, lower than Rs 69 crore in 2018-19.

As on March 31, 2020, its authorised capital stood at Rs 560 crore and paid-up share capital at Rs 557 crore.

In 2018, the government had invited bids to sell 51 per cent stake in Pawan Hans. However, it was withdrawn after ONGC decided to sell its 49 per cent stake in the company along with the government's.

18/01/21 PTI/Economic Times

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IAF looks to lease mid-air refuellers amid critical shortage, seeks offers from Airbus, Boeing

New Delhi: The Indian Air Force (IAF) has sought financial quotes from American aviation giant Boeing and the European aerospace major Airbus for leasing of at least two tankers to overcome India’s critical shortage of mid-air refuelling capability.

While the IAF has sought leasing quotes for two mid-air refuellers from Airbus, it has requested quotes for only one from Boeing, sources in the defence and security establishment told ThePrint.

This has led to speculation that India might end up leasing three tankers and will go in for a large order of six refuellers based on the experience of using them.

The IAF is in talks with both companies, the sources said, and a decision in this regard could come soon.

In consideration are the A330 multi-role tanker transport (MRTT) aircraft, a derivative of the twin-engine A330 passenger aircraft of Airbus, and the KC-46 tanker, a derivative of the Boeing 767 passenger jet, the sources added.

It was earlier believed that the IAF had made up its mind for the Airbus tanker, and Boeing wasn’t among the options.

18/01/21 Snehesh Alex Philip/Print

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DGCA issues fresh guidelines on cross-country training flights

Chandigarh: To address operational constraints and enhance the safety aspects, the Directorate General of Civil Aviation (DGCA) has issued fresh guidelines on the conduct of cross-country flights by training institutes for the issue of private or commercial pilot license.

The civil regulator has directed flying training organisations to incorporate the new guidelines in their training syllabus within three months and get the revised operating procedures approved from it.

Under the Indian Aircraft Rules, it is mandatory for trainee pilots to undertake cross-country flights by day and night and pass the required tests. The minimum number of hours of cross-country flying and distance prescribed for obtaining a private pilot’s license, commercial pilot’s license or an airline transport pilot’s license are different.

Flight planning, route assessment, in-flight procedures, communication, navigation, emergencies and contingencies and identification of a landing site by the training organisations and the role of flying instructors have been dealt with in the guidelines received by the flying training organisations this month.

18/01/21 Vijay Mohan/Tribune

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Over 60% airline passengers complained of ticket refund issues in December: DGCA

As more Indians are warming up to air travel amid the pandemic, the country witnessed a 15 percent increase in domestic airline passengers in December 2020. As many as 7.33 million people travelled by air last month against 6.35 million in November.

However, several Indians are yet to get a refund of the air tickets they booked during the coronavirus lockdown, the Directorate of General of Civil Aviation (DGCA) has informed.

The DGCA has said that 61.4 percent air passengers complained of ticket refund issues in December alone, according to a report by Hindustan Times. Most of these refund related complaints involved India’s national carrier Air India, followed by SpiceJet and TruJet.

The startling number of complaints surrounding refund related issues were raised last month despite a direction from the Supreme Court to all airlines to process the flight fare refund to all passengers who had booked tickets during the lockdown.

Speaking about the delay in the refund process, Jay Bhatia, Vice-President, Travel Agents Association of India (TAAI), said: “Air India is refunding the amount through travel agents, but the progress is very slow. At present, immediate refunds are getting processed on our global distribution system (GDS) only below the value of our weekly sales. As for SpiceJet, refunds for groups and series of agents are being processed and will be settled by the end of this month. GoAir has also assured that it would process the refund for all flight tickets booked during lockdown by January-end.”

18/01/21 Moneycontrol

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After Tejas, India set to procure more MiG-29 and Sukhoi fighter jets

The government is set to procure 21 MiG-29 and 12 Sukhoi-30MKI fighter aircraft from Russia, days after the Cabinet Committee on Security (CCS) approved the purchase of 83 Light Combat Aircraft Tejas from Hindustan Aeronautics Limited (HAL). The Centre will also purchase the upgrades of the aircraft's existing fleets.

The Request for Proposal (RFP) will soon be issued to Russian state-run defence export arm Rosoboronexport, sources told the Times of India.

The MiG-29s are expected to be acquired at "relatively lower prices" and will add to 59 such jets already with the Indian Air Force (IAF). The 12 Sukhoi-30MKIs, on the other hand, will add to the existing fleet of 272 such fighter aircraft already contracted from Russia for around $15 billion, with the majority of them licensed to be produced by HAL. The IAF has so far inducted 268 of 272 Sukhoi jets, with around nine of them lost to accidents and crashes over the years.

Along with the 83 new Tejas, to be inducted in the January 2024-December 2028 timeline, the additional MiG-29s and Sukhois will curb the decline in the number of IAF fighter planes and will add more firepower to the draining strength of the air force.

The defence ministry had in July last year granted initial approval for the acquisition of the 21 MiG-29s, and further upgrade of the 59 existing aircraft to "ensure commonality across the fleet," costing Rs 7,418 crore.

18/01/21 Business Today

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After disastrous 2020, is aviation industry finally getting its wings in 2021?

The International Air Transport Association (IATA) released its financial outlook for the global air transport industry, showing that airlines were expected to lose $84.3 billion in 2020 for a net profit margin of -20.1%. Revenues would fall 50% to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.

“Financially, 2020 will go down as the worst year in the history of aviation. On an average, every day of this year will add $230 million to industry losses. In total, that’s a loss of $84.3 billion. It means that—based on an estimate of 2.2 billion passengers in 2020—airlines would lose $37.54 per passenger. That’s why government financial relief was and remains crucial as airlines burn through cash,” said Alexandre de Juniac, IATA’s director general and CEO.

There is no doubt that the year 2020 will go down in history books as the air transport industry’s most turbulent year till date, with massive fluxes in passenger volumes globally due to the pandemic. Government-imposed travel bans and nationwide lockdowns during the first half of the year were not enough to prompt travellers to return to the skies when things eased. After showing some positive signs over the northern hemisphere in the summer months, global passenger traffic at the end of November 2020 slumped back to 48% year-on-year (YoY) from 2019, according to data shared by SITA, the IT provider for air transport industry, delivering solutions for airlines, airports, aircraft and government data. Regaining passenger confidence has become a critical factor for airlines to weather the ongoing economic storm.

David Lavorel, CEO of SITA, at airports and borders, predicts a smarter, safer and more sustainable travel industry fit for the people and planet. He says, “Despite the bleak travel outlook for the 2020 holiday season in western countries, there are reasons to be hopeful for 2021. Fringe and emerging technologies that were sidelined during the previous decade of industry growth are now being examined with fervent scrutiny to evaluate their efficacy in solving crucial Covid-19 challenges.” For example, Health ETAs (Electronic Travel Authority), where electronic verification of a passenger’s health status is required upon entry to a country, look set to be commonplace by 2022. Their usage will become standardised as new vaccines are made available in 2021.

17/01/21 Vaishali Dar/Financial Express

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Now, fly to Statue of Unity

Juhu airport-based charter company, Bativala M Bhagvati Flying Charters LLP, has tied up with Sanskruti Vacations for helicopter services from Juhu airport to the Statue of Unity in Kevadia, Gujarat.

Earlier, SpiceJet had started a seaplane service to the fast emerging destination.

Captain Mihir Bhagvati, a partner of Bativala M Bhagvati Flying Charters LLP, said, “The inaugural flight will take off later this month, and we have received more than 50 inquiries. Those wanting to visit can board the helicopter by 9 am and reach Kevadia by 10.30 am. The helipad there can accommodate nearly four helicopters.”

He said according to the arrangements, after having snacks and breakfast, the visitors can proceed to the statue.

After lunch, they can have some free time to spend. A car would pick them at Kevadia and drop them at airport, he said. The return journey would start only at 3.30 pm and the chopper would back at Juhu by 5 pm.

17/01/21 Yogesh Naik/Mumbai Mirror

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Jet fuel price up by three per cent

New Delhi: Jet fuel or ATF price on Saturday was hiked by 3 per cent - the fourth increase in two months on firming international oil prices, while petrol and diesel rates remained unchanged after hitting new highs.

Aviation turbine fuel (ATF) price was raised by Rs 1,512.38 per kilolitre, or 2.96 per cent, to Rs 52,491.16 per kl in the national capital, according to a price notification of state-owned fuel retailers. This is the fourth increase in price since December 1, 2020.

Rates had gone up by 7.6 per cent (Rs 3,288.38 per kl) on December 1, by 6.3 per cent (Rs 2,941.5 per kl) on December 16 and by Rs 1,817.62 (3.69 per cent) on January 1. ATF prices are revised on 1st and 16th of every month based on the average price of benchmark international rate and foreign exchange rate in the preceding fortnight.

In Mumbai, ATF price on Saturday went up to Rs 50,596.02 per kl from Rs 49,083.65 per kl. Prices vary from state to state depending on the incidence of local taxes.

The increase in the price of ATF, which makes for close to 40 per cent of the running cost of an airline, will put additional burden on airlines that have been struggling to return to normal business after COVID-19 lockdown had halted their operations.

16/01/21 PTI/New Indian Express

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Tejas, a tale of India’s nascent aerospace system with a happy ending

In a boost to India’s fledgling domestic aerospace ecosystem, the Cabinet Committee on Security cleared the Rs 48,000-crore deal for 83 Light Combat Aircraft Tejas, which included 73 Mark 1A versions, on 13 January. The first big order to the state-run Hindustan Aeronautics Limited (HAL) for Tejas, which will become the backbone of the Indian Air Force (IAF) in the coming years, is a landmark in the aircraft’s journey of over three and a half decades.

Read more on the journey >>

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Airlines wooing flyers back with deep discounts & kids fly free offers

New Delhi: Airlines are now going all out to woo flyers back. While almost all Indian carriers have started deep discount advance booking schemes, UAE’s Etihad has come out with a fly children for free with parents offer.

“Adults who book their next flight to Abu Dhabi or Dubai with Etihad can take their children for free. With every adult ticket booked before January 28, 2021, for travel until September 30, 2021, up to two children will travel free. So two adults can bring four children, free… The sale ends on January 28, 2021 at etihad.com. Offer valid for children up to 11 years old,” Etihad said in a statement.

Etihad all-inclusive return fare from Delhi and Mumbai to Abu Dhabi/Dubai are Rs 16,477 and Rs 13,155 respectively, the airline said.

Almost all Indian carriers have started sale to attract flyers. For instance, IndiGo has a five-day sale till Sunday (Jan 17) with all-inclusive fares on domestic flights starting at Rs 877. The sale is valid on travel from April 1 to September 30, 2021.

IndiGo chief strategy and revenue officer Sanjay Kumar said: “We are hopeful to see customers booking the seats on offer, with fares starting at Rs 877. Customer confidence in air travel has strengthened over the last few months, as it is the safest mode of transport. The advent of the vaccination has further improved the sentiment, with people looking at travelling within the country this year. This sale will help them plan domestic travel in advance and at affordable fares.”

15/01/21 Saurabh Sinha/Times of India

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IAF chief RKS Bhadauria says made in India Tejas aircraft 'far better' than China-Pak JF-17 fighters

New Delhi: A day after India approved a deal worth Rs 48,000 crore to procure 83 indigenously-developed Light Combat Aircraft (LCA) Tejas, Indian Air Force (IAF) chief RKS Bhadauria asserted that the made in India aircraft is far better and advanced than the Chinese-Pakistani JF-17 fighter jets.

In a major decision aimed at boosting the domestic aerospace industry, India on Wednesday approved a much-awaited deal worth Rs 48,000 crore to procure 83 indigenously-developed Light Combat Aircraft (LCA) Tejas for the Indian Air Force.

The procurement of 73 LCA Tejas Mk-1A fighter aircrafts and 10 LCA Tejas Mk-1 Trainer aircrafts at the cost of Rs. 45,696 crore along with Design and Development of Infrastructure sanctions worth Rs.1,202 crore has been approved by the Cabinet under the PM Modi.

The decision to procure the fleet was taken at a meeting of the Cabinet Committee on Security (CCS) chaired by PM Modi.

Air Chief RKS Bhadauria on Thursday said the 83 indigenous fighter jets to be inducted into the force would also be equipped with homegrown weapons such as the Astra beyond visual range air to air missiles and other standoff weapons, news agency ANI reported.

"Indian aircraft Tejas is far better and advanced than the Chinese and Pakistan joint venture JF-17 fighter," Bhadauria said when asked to compare the Indian fighter with the JF-17.

On whether the Tejas would be able to carry out Balakot-type airstrikes, the Air Chief said, "In terms of strike capability, it will have the capability of a standoff weapon which will be even beyond the capability we used that time."

Air Chief Bhadauria said that the deal -- the largest indigenous defence procurement deal -- is a huge step for IAF capability building, adding that the current strength of the two squadron plan of LCA will now increase to six.

"Order of 83 aircraft is huge. When this kind of order takes shape in the next 8-9 years, the entire ecosystem will get set up. For military aviation, it will be a big step. It will make a big base for fighter aircraft production, maintenance and support," ANI quoted the IAF chief as saying.

"It is a huge step for IAF capability building. It is also a big boost to our indigenous industry. It is also a big recognition of our designers. It is a huge step for Indian Air Force and for the country," he added.

14/01/21 India Today

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Discounts on domestic flights make a comeback as airfare cap ends in March

Mumbai: With the government cap on domestic airfares ending on March 31, airlines ticket sales are back with discounts on summer flights.

On Thursday, return airfares on routes like Mumbai-Cochin for travel in April-May were available for Rs 4,500, while a Mumbai-Delhi return was priced at Rs 5,000. Return tickets on low supply-high demand flights like non-stops from Mumbai to Dehradun began at Rs 9,000. Among the cheapest return fares were those on Mumbai-Goa flights priced at Rs 3,750 on IndiGo.

“With major airlines like IndiGo, SpiceJet and Vistara running heavy sales, this is a good time for travellers to avail the best prices for their upcoming trips,” said Aloke Bajpai, CEO of ixigo. “Vaccine rollout and cheap fares will lead to a substantial rise in demand to travel by summer this year, making this the ideal time to plan trips in advance.”

Last week, Vistara had lau-nched a sale, with the cheapest fare on offer priced at Rs 1,300. On Wednesday, IndiGo began a five-day special domestic sale which will end on January 17. “It will offer all-inclusive fares on domestic flights starting at Rs 877. The sale is valid on trav-el from April 1 to September 30. Change or cancellation fee of Rs 500 will be applicable on bookings made during the sale,” said an IndiGo spokesperson.

15/01/21 Times of India

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Domestic air travellers drop by over half in 2020 over 2019

New Delhi: Covid has pushed back India’s domestic aviation by almost seven years. The pandemic 2020 saw 6.3 crore domestic air passengers, a sharp 56.3% less than 14.4 crore in 2019, according to DGCA data. Such numbers were last seen in 2013 and 2014 with 6.1 crore and 6.7 crore domestic flyers, respectively.

Scheduled domestic flights were suspended from March 25 to May 25, 2020, as part of the lockdown. So the 6.3 crore people flew within the country in the remaining 10 months with over half (3.3 crore) doing so in January-March and just over 3 crore in May-December period (April saw no scheduled domestic flights).

The impact on international air travel will be more severe and longer-lasting as regular flights remain suspended since last March and special arrangement operations to and from some countries are happening under air bubbles and Vande Bharat Mission. Rating agency ICRA expects FY2021 international passenger traffic for Indian carriers to witness a YoY decline of 88-89%.

Scheduled domestic passenger graph followed a U-shaped trajectory last year. Travel restrictions began kicking in March onwards. The January-March quarter saw 3.3 crore domestic passengers. April saw no scheduled domestic flights and the same were allowed to resume partially from May 25. As a result, the April-June period saw 22.6 lakh passengers.

Airlines and airports had put in place Covid protocols and slowly people regained the confidence to take to the skies again, travelling mainly for personal reasons like visiting family and friends or returning home or to city of work. As a result, July-September 88.8 lakh domestic flyers and this number touched almost 1.9 crore in the festive and holiday months of October-December.

IndiGo was the market leader with over half of the domestic market share at 51.7% in calendar year 2020 followed by SpiceJet at 14.9%, Air India at 10.8%, and GoAir at 8.6%. The combined market share of the two Tata JVs — AirAsia India (7%) and Vistara (6.3%) — was 13.3%.

15/01/21 Saurabh Sinha/Times of India

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India to buy 83 Tejas light combat aircraft for Rs 45,696 Crore

New Delhi: The Cabinet Committee on Security (CCS), led by Prime Minister Narendra Modi, on Wednesday approved the purchase of 73 Tejas LCA (Light Combat Aircraft) fighter jets and 10 trainer aircraft for a cost of around ₹ 45 crore.

The Tejas Mk-1A LCA is an indigenously designed and manufactured fourth-generation fighter with critical operational capabilities that include an Active Electronically-Scanned Array (AESA) radar, an Electronic Warfare (EW) suite, and is capable of air-to-air refueling (AAR)

"The LCA Tejas is going to be the backbone of the IAF fighter fleet in (the) years to come. LCA-Tejas incorporates a large number of new technologies, many of which were never attempted in India," Defence Minister Rajnath Singh tweeted, adding that the deal was a "game-changer for self-reliance in the Indian defence manufacturing (sector)"

Mr Singh said the deal would also "considerably expand the current LCA ecosystem and help in creating new job opportunities", as well as changing the Indian aerospace manufacturing sector. 

"The LCA-Tejas programme would act as a catalyst for transforming the Indian aerospace manufacturing ecosystem into a vibrant Atmanirbhar-self-sustaining ecosystem," he wrote.

13/01/21 Kerala Kaumudi

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Air Traffic Hits a Milestone as More People Choose to Travel

More than 2.59 lakh passengers departed from Indian airports on January 9, while a minimum of 2.56 lakh passengers landed across the country on the same day.

According to information provided by the Ministry of Civil Aviation (MoCA), as many as 5.16 lakh passengers flew across India, not in the first week of January, but on a single day (January 9).

Last year, air traffic had decreased dramatically due to lockdown restrictions in every state and only began to pick up later in the year. However, this New Year narrates a different story for the aviation and travel industry in the country. It appears many individuals are travelling, leading to a higher number of passengers taking flights.

Around 4,306 flight movements took place last week on Saturday to accommodate over 5.16 lakh passengers, marking a milestone for aviation operations in India after the COVID-19 outbreak.

A total of 2,151 flight departures and 2,155 arrivals were registered across the country on the day. 

Meanwhile, a survey conducted by flight operator Vistara indicated that more travellers are switching to air travel as a mode of transport, as it is considered safe.

13/01/21 Outlook

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Govt May Offer Tax Sops To Aviation Sector In Budget 2021-22

The Centre has hinted rationalization of various taxes for the aviation sector in the forthcoming Union Budget 2021-22.

"We are working on a long-term plan to help the sector by rationalizing various taxes. We are looking forward to make the ecosystem smarter and more efficient to make the aviation sector sustainable," said Usha Padhee, Joint Secretary, Ministry of Civil aviation, Govt. of India while addressing a webinar “Connecting the Dots-Recovery of aviation, tourism and hospitality” organized by Women in Aviation International – India Chapter.

"The policy rejig will also help the sector in the long run, if it is hit by a similar crisis in the future," she added.

Highlighting the success of Udan scheme, she informed that the Ministry of Civil Aviation has managed to take steps towards recovery of the industry. “We are systematically opening the air space for operations and the air bubbles have helped aviation sector to get 60 % capacity of domestic sector back,” Padhee revealed.

She also added that great solutions are borne out of crisis while delving into the fact how the industry has fast adapted to technology and transformed digitally. "The crisis has led to digital transformation for the aviation sector. Now we have 100 % web check-ins and various technology driven solutions have been adopted to offer touchless experience to passengers," she quipped.

Speaking during the webinar, Radha Bhatia, President, Women in Aviation International India Chapter said “Women in Aviation International India Chapter is proud to put together the finest minds in the aviation industry to address pressing issues facing us. We hope the government would take cognizance of our problems and jointly work with the industry to find the proposed solutions.”

12/01/21 T3

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Domestic air traffic down 45% to 71 lakh in December: ICRA

India's domestic traffic declined around 45 per cent to about 71 lakh passengers in December last year over December 2019 even as passenger traffic was up 12 per cent sequentially over November 2020, ratings agency Icra said in a release.

The capacity deployment in December 2020 at around 67 per cent (vis-a-vis December 2019) is a significant increase over the 52 per cent capacity deployed in October 2020 and 59 per cent in November, Icra said in a release.

The Indian aviation industry has witnessed a continued recovery in domestic passenger traffic in December 2020, with a sequential growth (over November 2020) of around 12 per cent to about 71 lakh passengers, the ratings agency said.

The number of flights departing has also gradually increased from 416 from the resumption of domestic operations on May 25, 2020 to 2,230 on Day 219 (December 28, 2020), Kinjal Shah, Vice President, Icra said.

For December 2020, the average daily departures were nearly 2,048, significantly lower than the average daily departures of 3,062 in December 2019, though better than some 1,806 in November last year, she added.

"The average number of passengers per flight during December last year was 112, against an average of 137 passengers per flight in December 2019. Thus, it is expected that the domestic aviation industry operated at a passenger load factor (PLF) of around 72 per cent in December 2020, against 87.9 per cent in December 2019, that too on a low capacity," Shah said.

11/01/21 Free Press Journal

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Civil Aviation: Challenges Galore

The prognosis for the Indian civil aviation industry is pretty dire. Aviation consultancy firm CAPA predicts that consolidation is inevitable in the aviation sector, and that India could very well witness a "2-3 airline system" in the short to medium term horizon.

If the prediction turns out to be true, it may well mean higher airfares, more crowd at the airports, less choice, lesser connectivity options as those two or three players would want to operate on the profitable routes. Or it may well turn out to be just the opposite - with each player doing well in its network of destinations and a clear distinction between classes of air travel.

Credit rating agency ICRA said in a December 2020 report that the Indian airlines will post net losses of about Rs 21,000 crore during the fiscal year (FY) 2021 due to travel restrictions and impact on passenger traffic as a result of the coronavirus pandemic. However, the agency later stated that the net loss for FY22 may fall to Rs 14,600 crore on account of a 57 per cent increase in overall revenue due to increased air travel.  

On a global scale, 2020 was perhaps the worst year for the civil aviation sector. According to one analysis, as of 8 October 2020, 43 commercial airlines had gone bankrupt with several more expected to follow. In late October 2020, ACI Europe stated that 193 (mostly regional) of the 740 airports in Europe were also threatened with bankruptcy.

In early April 2020, more than 12,000 commercial aircraft or nearly half the global fleet had been grounded. Also, more than two dozen airlines across the world went out of business and had to shut shop, partly because of the pandemic and partly because of operational and financial issues that had already plagued the aviation sector before the pandemic forced grounding of airlines.

The global airline industry is expected to see a net loss of $118.5 billion in 2020, with a recovery of $80 billion estimated in 2021, according to data released by the International Air Transport Association (IATA). Despite the expected fall back, IATA says the industry is likely to experience a net loss of $38.7 billion next year, higher than that reported in 2008.

"The world-wide spread of novel coronavirus has severely impacted the airline industry, and the re-rise in cases in some parts of the world indicate a slower recovery going forward," IATA in a statement said. As per the report, the global revenue passenger kilometres (RPKs) have been estimated to have declined by 66 per cent - largest ever since World War II.

In October 2020, Cathay Dragon merged with Cathay Pacific after it ceased operations. In November 2020, Korean Air (with over 170 aircraft) parent Hanjin announced a $1.62 billion takeover bid for rival Asiana Airlines (82 aircraft) from Kumho Industrial thereby becoming one of the ten largest airlines in the world.

Credit rating agency ICRA said in a December 2020 report that the Indian airlines will post net losses of about Rs 21,000 crore during the fiscal year (FY) 2021 due to travel restrictions and impact on passenger traffic as a result of the coronavirus pandemic. However, the agency later stated that the net loss for FY22 may fall to Rs 14,600 crore on account of a 57 per cent increase in overall revenue due to increased air travel.  

On a global scale, 2020 was perhaps the worst year for the civil aviation sector. According to one analysis, as of 8 October 2020, 43 commercial airlines had gone bankrupt with several more expected to follow. In late October 2020, ACI Europe stated that 193 (mostly regional) of the 740 airports in Europe were also threatened with bankruptcy.

In early April 2020, more than 12,000 commercial aircraft or nearly half the global fleet had been grounded. Also, more than two dozen airlines across the world went out of business and had to shut shop, partly because of the pandemic and partly because of operational and financial issues that had already plagued the aviation sector before the pandemic forced grounding of airlines.

The global airline industry is expected to see a net loss of $118.5 billion in 2020, with a recovery of $80 billion estimated in 2021, according to data released by the International Air Transport Association (IATA). Despite the expected fall back, IATA says the industry is likely to experience a net loss of $38.7 billion next year, higher than that reported in 2008.

"The world-wide spread of novel coronavirus has severely impacted the airline industry, and the re-rise in cases in some parts of the world indicate a slower recovery going forward," IATA in a statement said. As per the report, the global revenue passenger kilometres (RPKs) have been estimated to have declined by 66 per cent - largest ever since World War II.

In October 2020, Cathay Dragon merged with Cathay Pacific after it ceased operations. In November 2020, Korean Air (with over 170 aircraft) parent Hanjin announced a $1.62 billion takeover bid for rival Asiana Airlines (82 aircraft) from Kumho Industrial thereby becoming one of the ten largest airlines in the world.

11/01/21 Ashish Sinha/Business World

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IRCTC announces air tour package from Delhi to Kerala

In a bid to boost the tourism sector in the country, Indian Railway Catering and Tourism Corporation (IRCTC) has launched a special air tour package from Delhi to Kerala in February. Dubbed as ‘Discover Kerala with IRCTC’, the package is a deluxe class offering.

The five-day package tour includes places such as Tea Museum and Plantation, Mettupetty Dam, Echo Point, Dutch Palace, apart from a boat ride from Marine drive.

The tour will begin with a flight from New Delhi to Kochi on February 20 and return to the national capital on February 25.

The cost per person for single occupancy is Rs 37,550, for double occupancy Rs 27,800 and for triple occupancy, it is Rs 26,260.

For those who have children, the cost per child with bed (5-11 years) is Rs 23,200, child without bed (5-11 years) is Rs 20,680, and child without bed (2-4 years) is Rs 12,360.

The package provides confirmed flight tickets on Vistara (Delhi–Cochin–Delhi), meals at the hotel – five breakfast, one lunch, and five dinners. Apart from this, all transfers and sightseeing by AC vehicle on sharing basis, accommodation in well-appointed rooms (one night at Cochin, two nights at Munnar, one night at Thekkady).

It also includes one night houseboat accommodation at Kumarakom.

The travellers will be provided one bottled mineral water per day for five days of the tour. They will also provide travel Insurance for guests below 60 years.

11/01/21 Indian Express

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Structural reforms to continue in aviation

The Indian aviation industry’s capacity and passenger growth have been significantly impacted since the COVID-19 pandemic. The industry’s financial woes have been only accentuated by the pandemic. The deteriorating financial health of the industry has raised expectations of tax sops to help reduce their high cost and debt burden, especially lowering taxes on aviation turbine fuel (ATF), which comprises 30-40 percent of the total cost of an airline, and the prices of which are 45-50 percent higher in India, compared to international prices. The industry also requires aid in terms of reduction in other levies, which include among others, airport charges, parking and landing and navigation charges. Furthermore, since the airlines have to currently follow a fare band as per the directives of the Ministry of Civil Aviation (MoCA), which is constraining their ability to charge higher fares, they want relaxations in terms of the fares they can charge.

The government is expected to reiterate its focus on improving regional connectivity through its Regional Connectivity Scheme (RCS) or UDAN (Ude Desh ka Aam Nagrik) and making flying affordable to the masses by providing a favourable eco-system. With continued thrust of the government on infrastructure creation and development, the Budget is likely to focus on upgradation of airports in Tier 2 cities through the public-private-partnership (PPP) route. Furthermore, reiteration of the focus on setting up new airports and expansion of existing airport capacities at some key airports to help address the current airport infrastructure constraints faced by the airlines, and to improve connectivity with the underserved / unserved airports and thus boost tourism, would help.

There could also be some focus on the maintenance repair overhaul (MRO) sector. In line with the government’s increasing thrust on Atmanirbhar or Make in India scheme, the Budget could focus on incentivising the MRO sector to retain the MRO activities in the country.

The Budget is also expected to prioritise the privatisation of Air India Limited, which has been facing roadblocks over the last several months.

09/01/21 Kinjal Shah/Moneycontrol.com

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Airlines given some leeway on local fares

New Delhi: The aviation ministry on Friday issued an order saying domestic airfares will remain capped till March 31, 2021, a further extension of over a month from the earlier deadline of February 24. Airlines, however, will now be required to sell only 20% of seats at fares below the midpoint of the minimum and maximum fares.

They were required to sell 40% of seats on a flight below the midpoint when scheduled flights were allowed to resume on May 25, 2020, with capped fares.

This means, fewer seats will now be available for lower price bands as airlines can now sell more domestic flight tickets for higher fares.

Airlines had been pointing out that jet fuel prices have shot up significantly since the rules were set last May and that fare range should either be raised to factor in the increased operating cost or be done away with.

On June 1, 2020, a kilolitre (1,000 litres) of jet fuel cost Rs 26,860 and Rs 26,456 in Delhi (at T3) and Mumbai, respectively. On January 1, 2021, the prices had shot up to Rs 39,324 and Rs 37,813 (taxes extra) in Delhi and Mumbai, respectively. Jet fuel accounts for almost 40% of an airline’s total operating cost.

The aviation ministry had last May classified domestic flights into seven categories based on flying time — starting with flights below 40 minutes having a range of Rs 2,000-Rs 6,000 and going up to those with flying time of 3-3.5 hours with a range of Rs 6,500-Rs 18,600.

09/01/21 Times of India

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India’s domestic passenger air traffic was lower by 49.6% in Nov: IATA

New Delhi: The global airlines body, International Air Transport Association (IATA), in its latest report has said that the domestic passenger traffic growth in India was 49.6 per cent lower in November last year as compared to the corresponding month in 2019.

“In India, domestic Revenue Passenger Kilometres (RPKs) contracted by 49.6 per cent year-on-year in November vs. 55.6 per cent fall in October. A further improvement is expected in the near-term as more schools and businesses reopen,” IATA said in the report.

The IATA, which represents around 290 airlines comprising 82 per cent of global air traffic, measures passenger growth in RPKs terms, which is calculated by multiplying the number of passengers to the distance travelled by them.

08/01/21 Tribune

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Cap on domestic airfare extended till 31 March, but with rules tweaked

India has extended the cap on domestic airfares till March 31.

However, government has made a little tweak to the rules. Airlines will need to sell 20 per cent seats below midpoint of the fare band on each flight instead of 40 per cent as mandated earlier.

Many airlines have opposed the system of government regulating air fare, saying that it impacts their flexibility of offering ticket prices in order to increase passenger occupancy when already air travel is under pressure.

In the wake of coronavirus outbreak, the aviation ministry implemented a cap on domestic airfare till 24 November. India started operating domestic flights after a gap of two months in the last week of May. The domestic flights in India have a cap on fares with both an upper and lower limit.

08/01/21 Arindam Majumder/Business Standard

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Domestic aviation sector likely to return to normal in 2-3 months, says Civil Aviation Secretary

Domestic aviation sector expected to return to normal in 2-3 months New Delhi [India], January 8 (ANI): In the next two to three months, the domestic civil aviation sector is expected to return to normal, said Civil Aviation Secretary Pradeep Singh Kharola here on Thursday.

"The sector remained resilient during the ongoing COVID-19 pandemic, but I don't think that the bad period is over. It will take the next two to three months for the country's domestic civil aviation sector to return to its normal. Big countries like India which have huge domestic market are where future of the aviation lies," he said.

Kharola was speaking at a webinar organised by industry body FICCI.

In December, Fitch Ratings expected average revenue passenger kilometres for India's airlines to remain 40 per cent below 2019 levels in 2021 despite recovering from being 65 per cent lower in 2020.

Domestic passenger traffic remains weak since flights resumed in late May after a two-month restriction with September data showing a 66 per cent year-on-year drop (58 per cent decline for 9M 20).

The government restricted airline capacity at 70 per cent of the March level and imposed fare bands until late February 2021.

08/01/21 ANI/Free Press Journal

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Now, airlines need to sell 20% seats below midpoint of domestic fare range

New Delhi: Domestic airfares will now remain capped till March 31, 2021, a further extension of over a month from the earlier deadline of February 24. However, airlines will now be required to sell at least 20% seats at fares below the mid point of the minimum and maximum fares.

Domestic fares were capped when these scheduled flights were allowed to resume on May 25, 2020. Airlines were required to sell 40% of seats on a flight below the mid point of fare range.

On Friday, the aviation ministry issued an order extending the caps till March 31 but relaxing the requirement to sell tickets at below mid point significantly. Airlines have been pointing out that jet fuel prices have shot up significantly since the rules were set last May and that fare range should either be raised to factor in the increased operating cost or be done away with.

On June 1, 2020, a kilolitre (1,000 litres) of jet fuel cost Rs 26,860 and 26,456 in Delhi (at T3) and Mumbai, respectively. On January 1, 2021, the prices had shot up to Rs 39,324 and Rs 37,813 (taxes extra) in Delhi and Mumbai, respectively — up by almost 50%. Jet fuel accounts for almost 40% of an airline’s total operating cost.

08/01/21 Saurabh Sinha/Times of India

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Chartered flight or booking all tickets on a plane, what will cost you more in India?

New Delhi: ICYMI, a man from Jakarta, on January 5, took social distancing to a whole new level by booking an entire flight for himself and his wife. Richard Muljadi, a socialite based in Jakarta, Indonesia, booked the entire flight to prevent exposure to Covid-19, and ensure a safe journey to Bali for himself and his wife.

The news went viral after Muljadi took to Instagram to announce the news to his social media followers. The man, who is famous for living an extravagant lifestyle, had shared a picture of an empty flight, with he and his wife being the only passengers.

Muljadi, who had travelled from Jakarta to Bali on a Batik Air flight, did not reveal the money he paid to book a private flight. However, he did mention that he booked as many seats as possible, instead of chartering the flight, as the first option was cheaper than the latter.

This is not the first time that we have heard of something extravagant like this happen. Individuals with enough resources and money, scared of travelling on a flight with other passengers during the Covid-19 outbreak, have chartered flights earlier. And it happened closer home in India.

A high-net-worth family chartered an Airbus A320 to fly just four people - daughter, two grandchildren and a nanny - from Bhopal to Delhi. In May, during the initial months of the pandemic, a Madhya Pradesh liquor baron, Jagdeesh Arora, who owns Som Distilleries, had chartered a 180-seater aircraft for a more than 1-hour Delhi-Bhopal-Delhi flight to ensure the family reached Delhi safely.

The aircraft was hired in Delhi; it took off from the national capital at 9.30 am and reached Bhopal at around 10.30 am. It took off from Bhopal for Delhi at around 11.30 am with four people on board.

If Richard Muljadi is to be believed, chartering a flight, instead of the cost-friendly solution he claims he opted for, would have cost a whopping amount of money. So, we decided to figure out the costs, and according to industry insiders, a chartered flight would cost a lot more than booking all the seats on a flight.

The Batik Air flight that Muljadi took is a Boeing 737, and for the Jakarta to Bali route, per seat would cost anywhere around Rs 3,000. A Boeing 737 on an average has over 170 seats (maximum 189 seats). So, if Muljadi booked almost every seat on the flight to ensure he and his wife fly alone, he would have had to spend more than Rs 5 lakh for the trip.

However, if one plans to charter a flight, it would cost them approximately Rs 5 lakh per hour, to do so - in India.

To charter an Airbus A320, the same aircraft that the Indian family chartered for their trip to Delhi, one would have to spend approximately Rs 5 lakh per hour, inclusive of all charges such as ground handling, parking, waiting charges. So, if one takes a two-hour flight from Delhi to places such as Mumbai or Kolkata, a round-trip would approximately come up to Rs 20 lakh in a chartered flight.

08/01/21 Krishna Priya Pallavi/India Today

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More Indian airlines could face bankruptcy in March when suspension of law is lifted: Report

Mumbai: One or more Indian carriers may head to the National Company Law Tribunal once the suspension of the bankruptcy law is lifted at the end of March, said the Centre for Asia Pacific Aviation (CAPA), an aviation consultancy firm. On Monday, the firm released a list of trends to watch out for in 2021.

To help businesses hit by the pandemic, the government had suspended the Insolvency and Bankruptcy Code last year, and later extended the suspension to March 31, 2021. Without significant recapitalisation, atleast one Indian carrier, if not more, will head towards bankruptcy.

The other big trend would be “consolidation” . “Consolidation is inevitable and will be strategic in nature. It could result in a 2-3 airline system in the near term,’’ said the CAPA 2021 trends report, adding that Air India’s privatisation is likely to be successful by the end of 2021. The Indian airline sector will be completely private then. Tata Sons will increase its shareholding in AirAsia India from its recent 84% to 100%, it predicted.

“The structure of competition may change in the near to medium term, possibly resulting in a two-horse race in both the airline and airport sectors. Following the privatisation of Air India, the airline sector is likely to be dominated by two major players, with a combined domestic market share of around 75-80%. The acquisition of Mumbai and Navi Mumbai airports by Adani Airports may result in a two-horse race emerging in the private airport sector. These developments will necessitate a strengthening of competition and consumer protection regulations,’’ said CAPA.

Domestic traffic in FY2022 is expected to reach 70-80% of FY2020 levels. But this does not factor in the possibility of industry consolidation and supply-side risks. Discretionary domestic travel segments, which accounted for an estimated 55% of the market pre-Covid, are are unlikely to return until the pandemic is under greater control or deployment of a vaccine is widespread, it said. International traffic is only expected to recover to 35-40% of FY2020 levels. FY2022 is expected to be another year of large losses for the industry, especially airlines. The cap on airfares imposed by the government in May last year might continue to the first half of 2021, CAPA said.

07/01/21 Times of India

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Key issues to watch in Indian aviation in 2021: Report

Aviation consultancy firm Centre for Asia Pacific Aviation India (CAPA India) has released a report on ‘Key issues to watch in Indian Aviation in 2021’. The report covers the impact on the industry as well as predicts top trends, among others.

Due to the Covid-19 outbreak, CAPA India said that the air travel demand remains “uncertain”, especially when it comes to international air traffic this year. Long haul traffic, in particular, is likely to take some time for the revival.

The report indicates that the Indian aviation sector is moving towards consolidation, and it could result in a two-three airline system in the near to medium term.

CAPA India has predicted that “after almost 30 years of deregulation a largely market-driven sector will finally emerge from 2021, with long term strategic implications for consumers, competition and industry structure.

The government’s commitment to the privatisation of Air India and airports has been appreciated by CAPA India.

06/01/21 Business Traveller

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India to ink 2 landmark military aircraft deals in next few months

New Delhi: India is gearing up for two major long-pending military aircraft deals, together worth over Rs 50,000 crore, in the new year. The contracts for 83 indigenous Tejas fighters and 56 medium-transport aircraft through a Tata-Airbus joint venture are set to be inked within the next few months.

The over Rs 37,000 crore order for 83 Tejas Mark-1A jets from defence PSU Hindustan Aeronautics Ltd will be the biggest-ever deal in the indigenous military aviation sector. These 83 fighters, the deliveries of which will begin three years after the contract is inked, will have 43 “improvements” over the 40 Tejas Mark-1 already ordered by the IAF.

The Tata-Airbus project to build 56 twin-turboprop C-295 aircraft, which will replace the old Avro-748 aircraft of IAF, in turn, will be the first time an Indian private sector company will enter the defence aerospace arena.

While Airbus will supply the first 16 aircraft in two years after the contract is inked, the rest 40 will thereafter be built in India within eight years, in the project which was initially valued at Rs 11,929 crore.

Both the projects have been sent to the Cabinet Committee on Security (CCS) for the final approval. “The Tejas contract will be the first to be approved by the CCS. It is likely to be inked in early-February. The C-295 project, with the participation of Tata as the Indian production agency will follow subsequently,” said an official on Tuesday.

The overall cost of acquiring the 83 single-engine Tejas fighters and their support package has been cut down from the earlier around Rs 56,500 crore being demanded by HAL after protracted negotiations, as was reported by TOI last year.

The IAF’s two Tejas squadrons, the “Flying Daggers” and “Flying Bullets” at Sulur, have till now inducted only around 20of the original 40 Tejas Mark-1 fighters, which were all slated for delivery by December 2016 under two contracts worth Rs 8,802 crore inked earlier.

The 83 Tejas Mark-1A fighters will have 43 “improvements” to improve maintainability, AESA (active electronically scanned array) radar to replace existing mechanically-steered radar, air-to-air refuelling, long-range BVR (beyond visual range) missiles and advanced electronic warfare to jam enemy radars and missiles.

06/01/21 Rajat Pandit/Times of India

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Is it safe to eat on the plane amid Covid-19 pandemic?

The recent ban by the Thailand government on serving, or consuming, food and beverage on flights has reignited the debate on whether governments around the world, including in India, should do the same.

It is a tricky issue. While airlines are pushing for travel to normalise as fast as possible to recover from the huge dent made by COVID-19, governments need to take a call on the safety of passengers amid a new strain of the virus re-igniting concerns.

The concerns are not without reason.

India suspended flights from the UK in December. And despite measures to ensure passengers had tested negative for the virus before boarding  - for flights before the suspension came into effect - about 20 people tested positive for the new virus strain, on arrival in India. That some of these positive travellers managed to slip through and reached their hometown before being detained again, underlined the risk involved.

"While modern aircraft cabin air circulation and HEPA filtration systems are safe  - they will not re-circulate viruses - these cannot protect against someone directly breathing or ingesting infected air from someone having a glass of wine in the next seat. The risk arises when masks are off, as happens during meal service," says Sanjiv Kapoor, the former COO of SpiceJet and former CSCO at Vistara, who has been advocating Indian authorities to take a similar action like the counterparts in Thailand.

04/01/21 Prince Mathews Thomas/Moneycontrol.com

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Top risks for India’s airlines in 2021

To say that airlines in 2020 witnessed turmoil would be an understatement. In what is aviation’s most turbulent year, airlines have collectively lost $120 billion and counting. The losses are expected to worsen. From the beginning of the year till date, around fifty airlines have shut shop. Many others have continued only by virtue of being propped up by government bailouts which aggregate to $173 billion. And with the continuing coronavirus pandemic, the industry continues to fly in the eye of a storm. Even with the vaccine on the horizon, risks abound. Precautions must be ttaken. 

Read why the flight ahead is going to be extremely turbulent >>

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IAF Continues Operations To Douse Fire In Nagaland's Dzouku Valley

Kohima: Indian Air Force (IAF) helicopters continued operations to douse the fire in Dzouku Valley near Kohima here on Monday.

"Continuation of Operations #DzoukuValley. IAF helicopters resumed Bambi Bucket operations today towards dousing the fire in Dzouku Valley near Kohima. Four Mi-17 helicopters have been deployed at Dimapur & Rangapahar for the task," IAF wrote on Twitter.

Sixty personnel of National Disaster Response Force (NDRF) were deployed on Saturday at the wildfire site at Dzukou valley which lies on the Manipur-Nagaland border, according to Manipur Chief Minister N Biren Singh.

Union Home Minister Amit Shah on Friday had assured of assistance to Singh in containing the wildfire.

Director-General of NDRF Satya Pradhan updated that teamwork of all the agencies along with support from the Centre and the state government helped in fighting the wildfire.

04/01/21 Business World

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