Economic Survey 2022 says Air India sale will boost recovery in aviation sector

Recovery of the pandemic-hit Indian aviation sector will benefit from the sale of Air India and the handover of the airline to the Tata Group, the Economic Survey tabled in Parliament on January 31 said.

The annual report card of the economy that comes a day ahead of the Budget said the Air India handover, coupled with a boost to digital infrastructure and structural reforms in telecommunications, would have a positive impact on the pace of recovery of the aviation sector.

"The pace of this recovery and further growth is likely to continue due to consistent efforts of the government to bring in various structural, fiscal and infrastructural reforms in addition to a slew of measures/schemes like the production linked incentive scheme (PLI) to support industries,” the survey said.

The Tata group on January 27 got control of Air India almost three months after winning the bid to take over the debt-laden flag carrier in Rs 18,000 crore equity and debt deal.

The sector is on the path to gradual recovery from the turbulence caused by the COVID-19 pandemic, as seen by the steady rise in monthly air passenger traffic, the survey said.

The accelerated pace of vaccine roll-out and easing of travel restrictions also boosted recovery.

However, the survey warned that new restrictions introduced across the globe due to the spread of the Omicron variant pose a threat to tourism as well as domestic passenger traffic in the near term.

"The trajectory of the tourism sector, especially international tourism, remains uncertain,'' said the Economic Survey. ''The emergence of the Omicron variant and the consequential travel restrictions pose a threat to domestic passenger traffic in the near term.''

31/01/22 Moneycontrol 

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Indigo to start flight services from Kadapa to Vijayawada and Chennai from March 27

The Indigo Airlines services company has entered into an agreement with AP Airports Development Corporation Limited (APDCL) to operate Indigo flights from Kadapa to Vijayawada and Chennai. TruJet, which has operated flights on these routes so far, has given Indigo a chance after it terminated its contract to operate the services. For this, the state government will pay Rs. 20 crore to the company under the Viability Gap Fund (VGF). The state government on Monday issued orders to this effect. Indigo will operate four flights a week between Chennai-Kadapa and Vijayawada-Kadapa from March 27.

31/01/22 Pavan Kumar Bandari/Hans India

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Domestic flight count drops by half due to Covid wave

Coimbatore: The third wave of the pandemic has led to a 50% dip in the number of domestic flights operated from the Coimbatore international airport.

Only 12 domestic flights are operated from the airport now, compared to 23 a month ago. Of the 12, some flights get cancelled due to low patronage. However, international flights to Sharjah and Singapore continue to operate as usual.

Frequency of flights to destinations such as Chennai, Delhi, Hyderabad, Bengaluru and Mumbai has come down. Flights to Tirupati, Pune and Goa have been stopped.

Three flights are operated to Chennai now, compared to six a month ago. Number of flights to New Delhi have come down from four to two, Mumbai from four to three, Bengaluru from three to two and Hyderabad from three to one.

Flight and passenger movement had touched a peak in December 2021 after services were disrupted due to Covid-19 in 2020. “Only business people and those travelling for education are depending on air travel now. Leisure travel has taken a beating as people want to avoid unnecessary travel,” said aviation enthusiast Mukuntha Kumar.

31/01/22 Times of India

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Economic Survey 2022: Indian aviation on path to gradual recovery; international tourism uncertain

The Indian aviation sector is on the path to gradual recovery from the turbulence caused by the COVID-19 pandemic but international tourism is still uncertain, the Economic Survey 2021-22 said.

The Economic Survey, an annual report card of the economy, is prepared by the Economics division of the finance ministry’s Department of Economic Affairs under the guidance of Chief Economic Adviser.

“With the accelerated pace of vaccine roll-out and easing of travel restrictions globally, Indian aviation sector has started to rebound. Despite the travel restrictions, the total passengers carried in October, 2021 reached 99.58 lakhs which was near 68 percent of the pre-COVID level (146.25 lakh),” the Survey said.

However, the survey has cautioned that there is uncertainty in the international travel market.

“At the time of writing, new restrictions were being introduced worldwide due to the spread Omicron variant of the COVID-19. Thus, the trajectory of tourism sector, especially international tourism remains uncertain,” the Survey said.

India had banned commercial scheduled international passenger flights in March 2020 due to the onset of COVID-19 and since then air travel abroad has taken place via air bubble arrangements and Vande Bharat Mission. India currently has air travel arrangements or transport bubbles with 35 nations. Under the Vande Bharat Mission, which is currently in its 15th phase, over 47,000 inbound and outbound flights have been operated as on December 31, 2021, carrying over 63.55 lakh passengers.

The survey also noted the potential of drones as a sector that can become an important propeller for growth due to their reach, versatility, and ease of use. The sector had received an impetus last year with the liberalized Drone Rules 2021 and the PLI (production-linked incentive) scheme.

“The policy reforms will therefore catalyze super-normal growth in the upcoming drone sector,” the survey said.

31/01/22 Anu Sharma/CNBCTV18

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Government Plan To Better Connectivity A Brahmastra: Aviation Minister

New Delhi: The multi-modal connectivity envisaged under "PM Gati Shakti" will be achieved if the Centre and all the 36 states and Union territories work together, Aviation Minister Jyotiraditya Scindia said on Monday.

Prime Minister Narendra Modi launched "PM Gati Shakti - National Master Plan" on August 15 last year to develop multi-modal connectivity through integrated planning and coordinated implementation of infrastructure connectivity projects.

A total of 16 Union ministries, including the railways and the roadways ministries, have been brought under the plan.

"Gati Shakti is not a scheme, but it is an initiative, a foundation. But it will not be an exaggeration if I say that it is a 'brahmastra'," Mr Scindia said at an event.

It is a "brahmastra" (powerful weapon) that will take India to the destination that the country's forefathers dreamt about, he added.

Approximately 12-13 per cent of the country's GDP is spent on logistics currently, Mr Scindia noted.

A family is happy when every member carries out his duties, he said, adding that similarly, under Gati Shakti, 16 departments have been tied together so that each fulfills its responsibilities and uses resources judiciously to achieve its targets.

The National Master Plan will have a multiplier effect on the lives of people, the minister noted.

He said words like "gati" (speed) and "shakti" (strength) have been added to the country's dictionary after a gap of 70 years.

31/01/22 PTI/NDTV

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Aviation sector may gain if Shiradi Ghat NH closes for 6 months

Mangaluru: Even as the proposed closure of the Shiradi Ghat stretch of national highway for six months has upset stakeholders, the aviation sector may be benefited by this development.

According to aviation industry stakeholders, the closure of the ghat section for six months will result in travellers avoiding roads and taking flights to Bengaluru. The National Highways Authority of India (NHAI) has proposed closing the Shiradi Ghat stretch of national highway completely for six months, in order to make a four-lane road from Donigal, on the outskirts of Sakleshpur, to Maranahalli, a distance of 220 km to 230km.

“With this proposed closure, we are expecting that the demand for domestic flights from Mangaluru to Bengaluru will increase, since not many people would want to take a long route to reach the state capital,” said an executive of a low-cost airline.

Currently, 10 flights are being operated per day on the Bengaluru-Mangaluru sector. For the time-being while an airline has cancelled a flight to Bengaluru due to poor passenger load, another carrier operates only night flights. “We have observed that the passenger load to Bengaluru is slowly picking up. There is no advance booking, but tickets are booked two days prior to the journey. Most of the travellers fly on personal visits, such as weddings and other similar engagements. There are few corporate bookings. The airlines are also expecting a surge in bookings, starting with the onset of summer,” said an executive.

According to a KSRTC Volvo bus driver, if the work commences after the closure of the Shiradi Ghat stretch, Airavat (Volvo) and other buses will ply via Mangaluru-Madikeri-Holenarasipura-Bengaluru or Mangaluru-Madikeri-Mysuru-Bengaluru routes. Cars and other smaller vehicles can traverse through Charmadi Ghat.

30/01/22 Kevin Mendonsa/Times of India

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Indian women in aviation

As per an international statistics, of all the registered pilots in India, over 15% are women pilots, that is out of 17,726 registered pilots, 2,764 are women. It is the highest percentage as compared to all other countries, outperforming even the USA and Australia. It is three times the international average of 5%. Out of the 15%, Air India became the leading airline to employ 12% of their pilots from the female sector.

Read how the Indian women extend their ladder of success high up to the sky, along with triumphs in politics, entertainment or even sports >>

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Air travel likely to become better and cheaper

 Domestic aviation is set to witness a price war, where passengers will benefit from competitive pricing in the coming months. While Air India, under the new regime, has already started the trend, two formidable players including Akasa Air and Jet Airways are scheduled to take off in the next few months offering more options.

Air India has already kicked off an enhanced meal service for travellers after becoming a part of the Tata Group. It has also set up an executive helpdesk for better facilities for customers including government stakeholders, senior business executives and others. Sources said more initiatives are in the pipeline for a better flying experience.

Aiming to provide affordable services, Akasa Air is likely to start services by June. Promoted by billionaire investor Rakesh Jhunjhunwala, this airlines has placed an order for 72 Boeing 737 Max aircraft. With solid backing from industry veterans including Vinay Dube (former CEO of Jet Airways) and Aditya Ghosh (former president of Indigo), the airline’s focus is on democratising air travel. Facilities such as food and seat selection will be available at an extra cost.

Jet Airways, an airline that was grounded in April 2019 after running out of cash, aims to start domestic operations afresh at the earliest in 2022 as a full-service carrier. They are likely to become functional within the first quarter. Sources said that the new owner, the Jalan-Kalrock consortium, is working closely with authorities and respective airport coordinators on slot allocation, airport infrastructure and night parking at key airports like New Delhi and Mumbai.

Industry sources claimed that the owners of Jet airways are in talks with aircraft manufacturers Airbus and Boeing for 100 narrow body aircraft for the renewed fleet. The airline is likely to see investment of nearly Rs 1,500 crore in the next six months. While top-level hiring has already been done, Jet aims to be a full-service airline with business class services in most of the flights.

Restrictions at the various airports in the country are set to ease with a gradual decline in Covid-19 cases and it is expected that air-traffic will see a post-pandemic revival in February. An airline official said that there is a lot of pent-up demand for travel, as people have been forced to stay at home. As a result, airlines have suffered huge losses. They can no longer afford to make losses as new players are entering the segment. Over the next few months, these airlines will offer competitive pricing to woo passengers. 

30/01/22 Kumar Vikram/New Indian Express

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Aviation sector may gain if Shiradi Ghat national highway closes for 6 months

Mangaluru: Even as the proposed closure of the Shiradi Ghat stretch of national highway for six months has upset stakeholders, the aviation sector may be benefited by this development.

According to aviation industry stakeholders, the closure of the ghat section for six months will result in travellers avoiding roads and taking flights to Bengaluru. The National Highways Authority of India (NHAI) has proposed closing the Shiradi Ghat stretch of national highway completely for six months, in order to make a four-lane road from Donigal, on the outskirts of Sakleshpur, to Maranahalli, a distance of 220 km to 230km.

“With this proposed closure, we are expecting that the demand for domestic flights from Mangaluru to Bengaluru will increase, since not many people would want to take a long route to reach the state capital,” said an executive of a low-cost airline.

Currently, 10 flights are being operated per day on the Bengaluru-Mangaluru sector. For the time-being while an airline has cancelled a flight to Bengaluru due to poor passenger load, another carrier operates only night flights. “We have observed that the passenger load to Bengaluru is slowly picking up. There is no advance booking, but tickets are booked two days prior to the journey. Most of the travellers fly on personal visits, such as weddings and other similar engagements. There are few corporate bookings. The airlines are also expecting a surge in bookings, starting with the onset of summer,” said an executive.

30/01/22 Times of India

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Name airport after JRD Tata, mark Oct 15 as National Aviation Day: Pilot body to PM Modi

New Delhi: As Air India takes to the skies again as a 'Tata enterprise', many are recalling the contributions of the man who heralded civil aviation in the country.

Jehangir Ratanji Dadabhoy Tata or JRD Tata, was India's first licensed pilot and the founder of India's first commercial airline in 1932 -- Tata Airlines, which became Air India in 1946.

Today, the airline JRD Tata had founded is back in his company's fold and there are those who want to pay tribute to the "father of civil aviation" in India.

The Federation of Indian Pilots (FIP), a body of commercial pilots, has written a letter to Prime Minister Narendra Modi asking him to declare the anniversary of JRD Tata's first flight as National Aviation Day and the name of the next major airport in honour of India's first commercial aviator.

President of FIP (Rtd) Capt Surinder Mehta writes, "The Late Bharat Ratna Air Vice Marshal JRD Tata is considered the father of civil aviation in India as it was his first flight in October 15, 1932 which heralded the dawn of airmail services in our country. Sir, it would be only appropriate that October 15 be declared as the National Aviation Day of India."

The letter cites the United States of America, which celebrates August 19 as National Aviation Day every year. August 19 is the birthday of Orville Wright, the first person to accomplish powered flight.

28/01/22 Poulomi Saha/India Today

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Akhilesh Yadav's chopper delayed due to high air traffic at Delhi: Airport official

New Delhi: Reacting to Samajwadi Party (SP) chief Akhilesh Yadav's allegation, the Delhi airport official on Friday said that his helicopter for Muzaffarnagar was delayed due to high air traffic.

"Akhilesh Yadav's chopper was not granted permission by Air Traffic Control (ATC) to fly initially because of high air traffic. After the clearance was given, the chopper had less fuel. After refuelling, the chopper flew to the destined place," said a Delhi airport official.

Responding to the statement of the airport official, the SP chief said, "People told me that BJP leaders had taken off before me. I was told about the air traffic. But why did the BJP leaders who had taken off before me faced no issue? They did not have to wait while I had to wait for over two hours."

He also said: "No matter what the BJP does, the people of Uttar Pradesh will remove the party from power"

Akhilesh had earlier during the day, alleged that his helicopter was stopped at Delhi airport without any reason. Akhilesh Yadav reached Delhi by commercial flight from Lucknow and had to travel by helicopter to attend a joint press conference with Rashtriya Lok Dal (RLD) chief Jayant Choudhary on his way to Muzaffarnagar from Delhi.

The SP chief alleged that his chopper was not allowed to fly from Delhi to Muzaffarnagar as the ruling Bharatiya Janata Party (BJP) was "disappointed". Akhilesh also claimed that a BJP leader was allowed to take off from the same airport while he was stopped.

Taking to Twitter, Yadav said, "My helicopter is still detained in Delhi without assigning any reason and is not being allowed to go to Muzaffarnagar. While a top BJP leader has just flown from here. This is a desperate conspiracy of the losing BJP. People are understanding everything...."

28/01/22 ANI/Times of India

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Election 2022: Charter flight business adversely affected as EC bans rallies

Since the Election Commission has banned physical rallies in five poll-bound states due to a surge in the Covid-19 pandemic, the business of charter flight operators has been affected drastically. 10-15 percent of the 350-400 flight hours per month are election-related travel at this stage, the operators said.

"Election travel has not really picked up. It had started to pick up initially, around mid-December, but then the EC announced the ban on rallies so that completely stopped most of the (election-related) travel," Rajan Mehra, CEO, Club One Air said. Election travel is very limited, added Mehra, former India head of Qatar Airways.

Kanika Tekriwal, CEO and Founder, JetSetGo Aviation, said that as there is a ban on rallies due to Covid-19, the company has seen only 70 percent of inquiries for election-related travel this year as compared to last year. However, no inquiry has been actually converted into actual flights as of yet and their conversion is in process, she added.

"Since the ban on physical rallies has been extended, we don't see many flights happening for elections this time for rallies," Tekriwal noted. JetSetGo Aviation and Club One Air have a fleet of 18 and 10 aircraft, respectively, to operate charter flights.

Announcing the dates for elections in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur on January 8, the poll panel had announced a ban on physical rallies, roadshows bike rallies, and similar campaign events till January 15.

On January 15, the commission extended the ban until January 22. However, it was later extended to January 31. While election-related travel is not picking up for charter companies, the overall scenario for business aviation (charter flight operations) has been very good, Mehra stated.

Right after the first Covid-19 wave, safety has become an issue of paramount importance beyond luxury or anything else, he mentioned.

"There has been a regularity of travel in private jets. So, before Covid-19, if we would on an average see around 150-200 flying hours per month, that has gone up to 350-400 flight hours per month," he stated. "It might pick up once the EC announces (removing the ban on) rallies but right now it is 10-15 percent for most operators," he mentioned.

25/01/22 Zee News

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5G Networks Pose No Threat To Aircrafts Flying In India: Here’s The Reason Why?

Just two days after Air India announced that it is canceling some of its US-bound flights due to 5G concerns, experts in India have put similar fears to rest.

ITU APT Foundation of India said that 5G services rolled out in India will not interfere with civil aircraft altimeters.

The Foundation is recognised by UN body International Telecommunications Union and it works on spectrum related issues.

The US aviation regulator, Federal Aviation Administration (FAA) warned that 5G interference could cause problems with different systems aboard Boeing’s 787 Dreamliner, especially at the time of landing.

In particular, 5G’s interference with a plane’s radio altimeter could prevent engine and braking systems from switching to landing mode.

This could prevent an aircraft from stopping on the runway.

An altimeter helps the plane maintain distance above the desired or assigned altitude from the surface while in flight

It is a principal navigation device which also facilitates landings in low visibility conditions.

Many airlines suspended their US operations, such as Emirates, the world’s largest operator of the Boeing 777, and Japanese airlines All Nippon Airways and Japan Airlines.

However in India, where the market is preparing to roll out 5G by the year-end, a similar situation may be averted. 

How India Is Safe

Aircraft around the world use the frequency band 4200-4400 MHz for radio Altimeters.

The 5G system being deployed in the US in frequency band of 3700-3,980 is close to this frequency band.

However in India, lower frequencies of 3.3-3.6 GHz are expected to be used, whereas 5G systems being licensed in the US are within the frequency band 3.7-3.9 GHz.

The difference of more than 500 MHz below the altimeter spectrum works as a safeguard.

The C band frequencies that are being auctioned for 5G in India are completely safe and pose no risk to the Civil Aviation Radar altimeters.

The government will not consider frequencies above 3.7 GHz for public 5G services, which is the frequency band in the USA where this potential interference has been observed.

22/01/22 Shreya Bose/Trak.in

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TRAI Says 5G Safe for Aviation in India

The Telecom Regulatory Authority of India (TRAI) has reassured that 5G is safe for aircraft operations in India. There has been a lot of confusion in people’s minds related to 5G being a safe technology or not. The concerns for the aviation sector came up primarily because of what’s happening in the United States. Air India had even cancelled some of its flights to the United States (U.S.) on Wednesday due to the same.

The U.S. telecom operators had started their C-band 5G services due to which airline operations were getting affected.

TRAI Chairman, P D Vaghela told TOI, that there are no problems for the aviation industry in India when it comes to the 5G rollout.

Vaghela said that there is plenty of safeguard between the spectrum that will be used by the telcos for 5G and the airwaves that aircraft equipment use. The same is not the case in the U.S. and thus the problems have occurred.

The major issue is with the airwaves that the altimeter uses which is in the 4200 MHz – 4400 MHz. In India, the telcos will be given 5G airwaves in the 3300 MHz to 3670 MHz. Thus, there will be a gap of 530 MHz between the frequencies that telcos will use and the airwaves that aircraft will use.

But in the U.S., telcos have been assigned airwaves between 3700 MHz – 3980 MHz. Thus, the gap between the frequencies for both services (aviation and telecom) is much less in the U.S.

An altimeter is a piece of sensitive aircraft equipment that helps the pilots with landing when the visibility on the runway is very less. Thus, it is important that there is no interference with the altimeter as it is a very crucial equipment of the aircraft determining a safe landing. But India has nothing to worry about here because of the spectrum safeguard that is present in between.

22/01/22 Tanay Singh Takur/Telecom Talk

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Domestic passengers can carry one cabin bag: CISF

Passengers flying domestic flights will only be allowed to carry only one bag inside the cabin of the aircraft, as the Central Industrial Security Force (CISF) has ordered airports and airlines to enforce the earlier Bureau of Civil Aviation Security (BCAS) one-bag order.

The CISF has asked the airport operators and airlines to implement the order after it found that passengers flying with more than one cabin baggage are choking the security check-in counters at airports across the country.

“As per BCAS AVSEC Circular Nos. 06/2000 & Lt12000, no passenger should be permitted to carry more than one hand bag other than those items already listed in the circular including lady's bag,” CISF said in an order issued on Wednesday.

“However, it has been seen that passengers on an average carry 02-03 Nos of hand bags to the screening point. This has led to increased clearance time as well as delays, congestion in PESC point and inconvenience to passengers. It is therefore felt that enforcement of the aforesaid Circulars must be ensured by all stakeholders/airlines,” the order further read.

The CISF, which guards all key airports across the country, has asked all airlines to inform passengers by putting this message on boarding passes/tickets.

“All airlines may be directed suitably to inform passengers and to display "one hand bag rule' on their tickets/boarding passes very conspicuously,” read the order.

Airport operators have also been asked to inform passengers through hoardings.

21/01/22 Mihir Mishra/Economic Times

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11.2 mn domestic air passengers in Dec; 6.6% higher than Nov: DGCA

Mumbai: Domestic airlines flew 83.8 million passengers in 2021 registering a growth of 33 per cent over the previous year. In 2020 airlines had transported 63 million passengers.

December saw the fastest growth of air travel since the onset of the pandemic. Carriers flew 11.2 million passengers in December, a growth of 6.6 per cent over November.

Average daily flights and passenger traffic was at 89 per cent and 85 per cent of pre-Covid level in December. Passenger per flight rose from 112 in September to 128 in December, according to domestic brokerage Prabhudas Lilladher.

Domestic air travel was suspended for nearly two months following the nationwide lockdown last March. Air travel resumed on May 24 with introduction of caps on capacity and fares.

While May and June saw a dip in traffic due to the second wave of pandemic, it rebounded since then with decrease in Covid-19 cases and increased vaccination. In October the civil aviation ministry allowed airlines to operate at 100 per cent capacity but airlines are yet to operate at full capacity.

20/01/22 Aneesh Phadnis/Business Standard

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‘Budget has little room for aviation-specific manoeuvres’

Indian aviation business is unlikely to return to pre-Covid level before FY24. Recoveries have been delayed with slowing demand due to the current spurt in Covid infections, says Sumit Singhania, Partner, Deloitte India. In an interview to BusinessLine, Singhania also touches upon the outlook for FY22 and recovery, and the push for local maintenance, repair and operations (MRO) activities, among others.

Edited excerpts >>

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Mahesh to Mega to NTR: Stars with own jets

Here are 5 tollywood celebrities that possess a private aircraft and use it to save time while flying. After all, time is money.

Allu Arjun 

The pushpa actor possesses a lavish home that looks like something out of a science fiction film, as well as a bespoke vanity vehicle worth over Rs 7 lakh, so it's only natural that he also owns a private plane to fly with his family or for work.

He was seen utilizing his private plane for race gurram advertising as well as a family wedding in Udaipur.

Ram Charan 

The telugu megastar has his own aviation company, TruJet, and not only does he own a jet or a few, but his airline company also assists in-ground management for other larger planes. 

He primarily utilizes the plane for trips with his wife.

Nagarjuna 

The Akkineni family's celebrity owns their plane, which is frequently used for private family excursions.

Mahesh Babu 

Another celebrity owns a private charter plane and uses it to fly with his family and wife Namrata Shirodkar. 

During their travels, the pair has frequently shared photos from inside their private jet.

Chiranjeevi 

This magnanimous personality, like his superstar son ram Charan, is the proud owner of his own private plane, which he utilises for work and family vacations.

NTR Jr.

The rrr singer is said to be the proud owner of a Rs 80 crore plane, which is currently parked at Hyderabad's shamshabad airport. 

He is well-known for only using the machine when it is absolutely necessary.

20/01/22 India Herald

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Ladakh admin sets up facility for online tickets for Kargil air service

In a first, the Ladakh administration has set up online booking of tickets for air services run by the Indian Air Force in the Union territory, officials said on Wednesday. The administration flagged off the operation of subsidised helicopter service from Ladakh. The service will cater to passengers from far-flung areas of Ladakh on approved routes from Leh-Lingshed, Dibling, Drass, Padum, Kargil, Nubra, Nerak, Jammu, Srinagar, they said.

"This year, for the first time, tickets of AN-32 Kargil courier service have been made available online," a senior official told PTI.

This facility has been introduced for the convenience of the passengers so that they can book their tickets, from the comfort of their homes, keeping in view the Covid situation, he said.

The passengers can log on to the website http://heliservice.ladakh.gov.in/airforce-plane-booking

The first flight has been planned on Thursday for the sector Kargil-Jammu-Kargil, subject to fair weather, officials said.

Initially, on a trial basis, booking is available for January 20, and subsequently the other flights will also be available, they said.

19/01/22 PTI/Economic Times

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Indian civil aviation ‘chronically ill’, need ‘immediate relief on ATF pricing & taxes’: IndiGo CEO

New Delhi: Alarm bells are ringing in the airline industry with the pandemic crippling traveller numbers and no real relief in sight from the government on price of jet fuel — which in India is among the costliest globally for domestic flights — and indirect taxes.

The CEO of India’s biggest airline, IndiGo’s Ronojoy Dutta on Wednesday minced no words in calling India’s airline industry “chronically ill” and has sought immediate life-saving relief.

He has termed it an “unreasonable proposition to expect that the industry should earn a 21% margin just to pay taxes to the government.”

According to rating agency Crisil, Indian carriers this fiscal could end up with a record high collective loss of Rs 20,000 crore.

“Civil aviation provides efficient infrastructure, critical for economic growth and employment in our country. Yet civil aviation pays 21% of its revenues to the government in indirect taxes with very little input credit. It is an unreasonable proposition to expect that the industry should earn a 21% margin just to pay taxes to the government. This unreasonable proposition is resulting in an industry that is chronically ill and is unable to live up to its true potential of boosting commerce and employment,” Dutta says.

“We would request the finance ministry to take some immediate action to address this long festering problem. Central excise taxes on fuel should be reduced from 11% to 5%, ATF should be brought under the GST, custom duties on repair parts should be eliminated. A rationalisation of taxes will result in explosive growth for aviation, which will have multiplier effects throughout the economy, stimulating commerce and employment and integrating the different regions of our diverse country closer together,” he added.

19/01/22 Saurabh Sinha/Times of India

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IAAI Launches E-Signature Campaign For Reinstatement Of Travel Agency Commission

Covid-19 has wholly disrupted the Travel and Tourism Industry at national and international levels for close to two years. Though transformed by technology and wellness tips, the spread of the Omicron variant forced travel restrictions, and the Industry has lost domestic and international tourists and local visitors. The Omicron waves sidelined the slow recovery that makes our future unpredictable.

Travel business is an economic activity related to continuous and regular buying and selling of travel-related services for satisfying human wants. Travel agents are the primary distribution channels for tourism, interconnected with tour operators, tourist guides, homestays, tourist boats and taxi operators, including the hospitality sector.

The impacts of the pandemic and economic fallout severely hit the travel agents. Past eleven years, the air travel sector has been outstretched with zero (nil) commission and lately with the pandemic. As an unorganized sector, most travel agents and tour operators are out of the MSME ambit, neither benefited from banks nor got any bailouts from the government. The Industry lost sustainability, and many have vacated offices, are jobless, find it hard to pay EMI on home or bank loans, have no savings and swinging for livelihood. No means to support families and gradually become an endangered business profession.

Air ticketing is the primary source of income to travel agents, who consistently contribute over 60-75% of the overall business to the airlines. Agents commission dropped from 9 -7, then 7- 5, later 5- 3, and finally 'NIL (Zero) Commission.

19/01/22 T3

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DGCA extends ban on international flights till Feb 28

International flight operations, to and from India, will continue to remain suspended till February 28, the Directorate General of Civil Aviation (DGCA) said in a notification on Wednesday.

Scheduled international passenger flights to and from India remain suspended since March 2020 amid the Covid-19 pandemic.

While there was some discussions towards opening-up in end-2021, the restrictions on operations were subsequently extended till January 2022, amid concerns over the Omricon variant of the coronavirus.

“The authority has decided to extend the suspension of Scheduled International commercial passenger services to/from India till 2359 hrs

IST of 28th February 2022,” the DGCA said in the notification.

These restrictions shall, however, not apply on international all-cargo operations and flights operating under the air bubble arrangement,

according to the aviation regulator.

India has air-bubble pacts with 28 countries that include the USA, the UK, the UAE, Kenya, Bhutan and France, among others. These

pacts allow special international flight operations by airlines between the countries / region with some restrictions.

19/01/22 Business Line

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Unreasonable 21 pc indirect taxes resulting in chronically ill civil aviation industry: IndiGo CEO

 The civil aviation industry has to pay 21 per cent of its revenues as indirect taxes and this "unreasonable proposition" is resulting in a chronically ill sector, IndiGo NSE -0.35 % CEO Ronojoy Dutta said on Wednesday. Dutta requested the Ministry of Finance to reduce central excise taxes on fuel from 11 to 5 per cent and eliminate custom duties on aircraft repair parts.

Civil aviation provides efficient infrastructure, critical for economic growth and employment in our country, he said in a statement.

"Yet civil aviation pays 21 per cent of its revenues to the government in indirect taxes with very little input credit," Dutta said.

It is an unreasonable proposition to expect that the industry should earn a 21 per cent margin just to pay taxes to the government, India's largest airline's CEO noted.

"This unreasonable proposition is resulting in an industry that is chronically ill and is unable to live up to its true potential of boosting commerce and employment," he said.

On January 17, rating agency Crisil said in a report that Indian carriers are likely to incur a massive loss of approximately Rs 20,000 crore in 2021-22 due to third wave of the COVID-19 pandemic and rising fuel prices.

Dutta requested the Ministry of Finance to take immediate action to address the long festering problem.

"Central excise taxes on fuel should be reduced from 11 per cent to 5 per cent, ATF (aviation turbine fuel) should be brought under the GST, custom duties on repair parts should be eliminated," said Dutta, who is also the Whole Time Director of the airline.

19/01/22 PTI/Economic Times

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Aviation Leader Dave Sharma Passes Away at 86

Dave was born in Burma in 1935, where he was one of 6 children and his family escaped from Burma during World War II, relocating to Northern India. Having lost his father at a young age, he became the patriarch of his family and took responsibility for the care of his siblings. In 1958, Vyas immigrated to England where he began his storied career in the airline industry with British Airways. In 1962, he came to New York City, where he worked full time for TWA. There, the airline took note of his work ethic and provided him a scholarship to Baruch College where he earned his MBA. In 1969, he married Suda Bala of Nairobi, Kenya in a traditional Hindu arrangement. They made a home in Forest Hills, Queens for two years before moving to Massapequa, Long Island to start their family. 

Vyas was a luminary in the aviation transportation industry. A fixture at JFK Airport for over forty years, he ran the North American Cargo Operations for Sabena Airlines (now Brussels Airlines) before elevating to Director of North American Passenger Service and Operations at both Sabena and Swiss Air. You couldn’t walk with him through any terminal at the airport without being interrupted every few minutes by someone who wanted to say hello to him or thank him for the assistance he had provided. He was recognized as a creative problem solver & astute businessman, but most importantly a kindhearted professional, who was always willing to help those in need, in particular showing great empathy towards passengers in distress. He is also remembered by his former colleagues for his professionalism, unimpeachable integrity, and his well-tailored suits. 

Vyas’ efforts in developing Sabena’s relationships in Africa earned him praise and recognition from the highest levels of government in Liberia and Rwanda, where he was a critical team member in the humanitarian relief effort during the 1994 Rwandan Genocide. Back home, he fostered community and charity in the JFK community, through his leadership roles on the JFK Chamber of Commerce, Kennedy Airport Airlines Management Council (KAAMCO), and the JFK Rotary club.

In addition to his wife of 52 years, Vyas Dev is survived by his daughter Ritu and his sons Rick and Rohin (both of whom served as U.S. Army officers).

18/01/22 Metropolitan Airport News 

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Aviation Minister Jyotiraditya Scindia holds meeting with Commerce Ministry on kickstarting multi-modal logistics hub

Aviation Minister Jyotiraditya Scindia on Tuesday held a meeting with officials of his ministry and the Commerce Ministry on kickstarting multi-modal logistics hubs in India. On Tuesday, he said on Twitter that alongside necessary infrastructure, it was equally important to make our cargo movement processes seamless and customer-friendly.

He said he chaired a meeting with officials from the Ministry of Civil Aviation and the Department of Commerce on the way forward for kickstarting multi-modal logistics hubs in India.

"Suggested institutionalising a Project Management Group with stakeholders spanning ministries and concerned industries to identify and address the prevailing challenges," Scindia said.

The government had on December 30, 2020, approved a multi-modal logistics and transport hub (MMTH) at Greater Noida in Uttar Pradesh with a view to making India a strong player in the global value chain.

18/01/22 PTI/Economic Times

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A Look At The Indian-Registered Jets With 50,000+ Flight Hours

As one of the fastest developing aviation markets, India has a relatively young fleet of aircraft. But of the hundreds of active commercial airplanes in the country, it’s not uncommon to find some that have crossed the 40,000-hour mark. And 20 of them have clocked more than 50,000 hours, according to ch-aviation.

See the details of those aircraft >>

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Flight-testing of naval fighter jets to be held at Goa facility

New Delhi: To meet Indian Navy's acquisition plans for carrier deck-based fighters, naval fighter jets will carry out flight-testing at the shore-based test facility (SBTF) at Naval Air Station INS Hansa in Goa.

During the tests beginning next week, these naval fighter jets would mandatorily operate from aircraft carriers.

Manufacturers of naval fighter aircraft like Rafale, F-18 and others making their efforts to meet the Indian Navy's requirement of fighter jets for operations from onboard the two carriers.

"Suitable fighters capable of operations onboard the carrier would first need to be assessed. Trials with the SBTF at Goa is part of the same process," said a source.

Amid this trials, Indian Navy continues to give due impetus to 'Make In India' and encourage indigenisation, for which the twin-engine deck-based fighter is being developed by the DRDO.

Indian Navy had enabled the LCA Navy version's trials at the SBTF followed by the successful trials onboard its aircraft carrier Vikramaditya.

LCA Navy is a prototype, the TEDBF is expected to be ready for trials by 2026, followed by production by 2031, which would then lead of the standard induction.

02/01/22 IANS/Daijiworld

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Aviation turbine fuel price hiked by 2.75 per cent

New Delhi: Halting a declining trend of last month, jet fuel or ATF price has been hiked by 2.75 per cent on firming international oil prices, while cooking gas LPG rate has seen the first decline since October.

Aviation turbine fuel (ATF) price has been hiked by Rs 2,039.63 per kilolitre, or 2.75 per cent, to Rs 76,062.04 per kl in the national capital, according to a price notification of state-owned fuel retailers.

The increase in rates comes on the back of two rounds of price cuts seen in December that reflected a drop in international oil prices during the second half of November and mid-December.

Thereafter, international rates have firmed up, leading to the hike in ATF price.

ATF price had peaked to Rs 80,835.04 per kl in mid-November before it was cut on December 1 and 15 by a total of Rs 6,812.25 per kl or 8.4 per cent.

Jet fuel prices are revised on the first and 16th of every month based on average price of international benchmark in the preceding fortnight.

02/01/22 Tribune

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Ex flight steward turned entrepreneur forays into Chartered plane business

Amit B Wadhwani, Mumbai based entrepreneur who owns prop-tech business SAI & mediatech venture Buffering has leased private chartered aircrafts to cater to growing demand in the segment.

"Most of my clients in bollywood, politics, corporates and sports are already using our data, technology, media assets. They leverage our connects to amplify their reach. While conducting businesses with them I noticed them spending huge sum of monies in private planes. Like real estate, media, I plan to disrupt pricing in luxury chartered travel too with plans starting just 99,000/ ", said Wadhwani.

 According to Buffering co-founder Darshani Khatri, most people who bought aircrafts in the rather bullish phase between 2000 to 2012 are sitting on inventory with no takers for the same as they lack reach, connects and the ability to sell hours. “We deal with almost all VIPs in the country and aim to have at least 50 landings per day from Feb 2022, considering our ability to sell at heavy discounts”, he said.

“Our asset light model will enable unlock value in aircrafts sitting unutilized in ground zero. Technology will help us initiate real time bookings and display inventory spread over our app on Android and iOS. Data amplification will help us reach out to potential customers who are actually waiting for a phone call offering chartered services at affordable prices without actually compromising anything”, added Khatri.

 "Post pandemic, the minimal touch points has been an area of attractiveness for the class who can afford chartered services. After Jet airways and Kingfisher went down, Indian skies lack privacy, Uber luxury, privilege of landing and taking off as and when wanted. With elections in 5 states in 2022, OTT boom boosting production related travel, risk of travelling in a group is all indicating huge demand for Chartered services in India," shared Krishiv KL Tekchandani, co-founder Buffering.

02/01/22  exchange4media

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Competition to soar in 2022 as new players enter aviation sector

New Delhi: Competition is expected to soar in India's aviation sector during 2022, as new players enter the industry along with deeper penetration of air transport in the hinterland.

Accordingly, a new airline as well as more privately operated airports are expected to increase competition in the sector that has faced the brunt of the ongoing pandemic. Besides, expanding regional and intra-regional presence will continue to widen the scope of the industry.

Moreover, passengers will gain from increased competition, Centre from divesting airport assets and the workforce from more professional opportunities in the aviation sector.

In terms of airlines, in 2021, Jet Airways and Air India found new owners. "The cherry on the cake was the launch of Akasa Air underpinning the future prospects of this sector in India," said Jagannarayan Padmanabhan, Director and Practice Leader, Transport & Logistics, CRISIL Infrastructure Advisory.

"Competition will continue to be strong across the airlines, it's important that the sector learns from the previous misadventures of undercutting prices to gain or maintain volumes."

In the medium term, the sector's growth is expected to come from the tier 2 and tier 3 cities, for which it is necessary to augment capacity as well as open up new regional airports.

"While Covid-19 has led to uncertainties in the airport sector, the established regulatory framework, as well as the growth potential in the Indian market over a long term, would continue to attract private developers," said Vishal Kotecha, Director, India Ratings and Research.

Notably, there have not been any bids in the airport space over the past two years. However, 2019 saw a significant number of bids in the airport sector with the Adani Group winning six airports, GMR and Zurich airports being awarded one airport each."There was a significant interest seen from both domestic as well as international players in these bids," said Kotecha.

01/02/22 IANS/Deccan Herald

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Air India reports loss of Rs 5,422.6 crore in April-September

Air India, which will soon be taken over by the Tata Group, reported a net loss of Rs 5,422.6 crore during the first of half of financial year 2021-22 as against a loss of Rs 3,779.26 crore in the year-ago period.

The airline's total revenue grew to Rs 5,524.23 crore during April-September 2021 from Rs 4,578.49 crore during the year-ago period, as per an exchange filing.

Total expenses stood at Rs 10,946.83 crore during the period under review as compared with Rs 8,357.75 crore during April-September 2020.

The airline held its annual general meeting on December 30, 2021 under the chairmanship of its CMD Rajiv Bansal. Its board of directors  approved the unaudited financial results for the half year ended September 30, 2021.

Air India had reported a net loss of Rs 7,017.42 crore during financial year 2020-21.

In October, the government had announced that the Tata Group had emerged as the highest bidder for divestment of its 100 per cent equity stake in Air India and Air India Express along with its 50 per cent stake in ground-handling company AISATS. Talace Private Limited -- a wholly-owned subsidiary of Tata Sons -- had won the bid to acquire the airline, which had a total debt of Rs 61,562 crore as of August 31. 

01/01/22 BusinessToday.in

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Aviation university registrar reinstated

Lucknow: Almost after two years of termination, the Union ministry of civil aviation on Friday reinstated the first registrar of Rajiv Gandhi National Aviation University, Amethi, Jitendra Singh. Hewas sacked on January 8, 2020.

The reinstatement order issued by under-secretary, civil aviation ministry, Ambuj Sharma said Singh is reinstated with immediate effect as per the orders of the court. A division bench of the Allahabad High Court had termed the termination of probation of Singh as illegal and had remitted the matter to the university asking them to proceed as per law and pass a fresh order.

Singh’s termination order in 2020 stated three grounds — obstructing an officer appointed by the government from discharging his duties, fabricating a complaint of sexual harassment by involving two girl students of the university, and wilful insubordination and indiscipline by exhibiting defiance to official orders.

02/01/22 Isha Jain/Times of India

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Passengers' Gain: Competition to soar as new players enter aviation sector

New Delhi: Competition is expected to soar in India's aviation sector during 2022, as new players enter the industry along with deeper penetration of air transport in hinterland.

Accordingly, a new airline as well as more privately operated airports are expected to increase competition in the sector which has faced the brunt of the ongoing pandemic.

Besides, expanding regional and intra-regional presence will continue to widen the scope of the industry.

Moreover, passengers will gain from increased competition, Centre from divesting airport assets and the workforce from more professional opportunities in the aviation sector.

In terms of airlines, in 2021, Jet Airways and Air India found new owners.

"The cherry on the cake was the launch of Akasa Air underpinning the future prospects of this sector in India," said Jagannarayan Padmanabhan, Director and Practice Leader, Transport & Logistics, CRISIL Infrastructure Advisory.

"Competition will continue to be strong across the airlines, it's important that the sector learns from the previous misadventures of undercutting prices to gain or maintain volumes."

In the medium term, the sector's growth is expected to come from the tier 2 and tier 3 cities for which it is necessary to augment capacity as well as open up new regional airports.

"While Covid-19 has led to uncertainties in the airport sector, the established regulatory framework as well as the growth potential in the Indian market over a long term would continue to attract private developers," said Vishal Kotecha, Director, India Ratings and Research.

Notably, there have not been any bids in the airport space over the last two years, however, 2019 saw a significant number of bids in the airport sector with Adani Group winning six airports, GMR and Zurich airports being awarded with one airport each.

"There was a significant interest seen from both domestic as well as international players in these bids," said Kotecha.

Under the National Monetisation Pipeline, the Centre plans to divest brownfield assets such as airports, thereby increasing competition in this sector.

At least 25 additional airports have been identified for monetisation in the next three years.

Furthermore, there has been increased focus on increasing regional connectivity.

In terms of the RCS-UDAN scheme, 948 valid routes have been awarded.

Out of which, 395 routes connecting 63 unserved and underserved airports including six heliports and two water aerodromes have been operationalised.

As per data, under UDAN 4.1, 168 routes were awarded during the year.

01/01/22 IANS/Business Standard

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New Year high: Chopper joyrides from today

Gandhinagar/Ahmedabad: The helicopter joyride service over Ahmedabad will begin on Saturday, January 1. State civil aviation minister Purnesh Modi will flag off the service from the Sabarmati riverfront, an official release said on Friday. People will be shown the major landmarks of Ahmedabad city from the air.

This New Year gift mimics Amdavadis’ soaring spirits. Curfew or no curfew, Amdavadis are flying high on the hope of ringing in the New Year with feast and festivities. While some have chosen to spend time at home with their loved ones, others have already flown or driven out, having planned well in advance.

Airfares have skyrocketed as have the tariffs of hotels at holiday destinations such as Udaipur, Mount Abu, Daman, Diu, Silvassa, and Goa. That clearly suggests people are travelling despite concerns over Omicron and the restrictions imposed by several state authorities.

An Ahmedabad-based HR consultant, Debashree Das, is already holidaying with her husband and friends — both human and furry — on the mountains. “The idea is to take a break from the everyday rigmarole and spend quality time in the lap of nature,” she said. “We drove to Shimla, Manali, Chitkul, Kinnaur Vally, and Jibhi.”

Gayatri Hurra, an Ahmedabad-based entrepreneur, said: “I will devour pastries and good food with friends in the afternoon through the evening.” Hurra added: “Then I will get home to spend time with the family.”

Home gatherings have boosted business, particularly for patisseries and bakeries. Esha Kakkar, the owner of an Ahmedabad gourmet patisserie, said: “The business is good this time and people truly seem to be in a celebration mode.”

As for the chopper service, the official release said the same aircraft will be used as an air ambulance. People will also be able to rent the helicopters to visit prominent pilgrimage sites in the state.

01/01/22 Times of India

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Private jet journeys took off during the pandemic months

Private jet journeys came as an answer to those who needed to travel despite Covid-restrictions over the last 21 months. There are no absolute numbers of growth patterns and flights taken across the last two years of the pandemic, yet. But an initial survey by Knight Frank (which publishes an annual global wealth index) offers a picture of both intent to fly private and action. 

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