Category: Aviation

IndiGo only airline in the world to induct one plane every week: CEO Pieter Elbers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IndiGo, India’s largest airline by fleet size and market share is expecting its fleet to double from over 350 planes currently to 600 by 2030.

Speaking about the airline’s capacity expansion, CEO Pieter Elbers claimed that no other airline is the world is inducting one aircraft every week like IndiGo.

“What IndiGo is doing today, inducting a plane every week, is something I’m not aware of any airline in the world actually must be doing that. And having the crew ready, having the training ready, we have our own training center where we train 2,000 people a day and having the spares ready,” Pieter Elbers said adding that IndiGo is in a formidable position to deal with the challenges.

The airline has an outstanding orderbook of around 1,000 narrow-body planes including the 500 aircraft order placed in June 2023.

One of the reasons that has kept IndiGo much ahead of competition is its operational strategy having a single aircraft fleet and single configuration that makes it cost efficient as compared to other airlines.

Widebody planes & longer route flights might need two or three-class configuration offering customers the choice of business and first class as well.

That could change the airline’s long-practiced business strategy.

So, will it still be cost efficient?

IndiGo CEO says narrow-body planes will continue to remain the foundation of its business.

“Today we operate around 350 planes. By 2030, we will be operating in the range of 550 to 600 aircraft. That’s a single aircraft, I don’t think there’s many airlines in the world running an operation of that size as a single aircraft type. So that’s the very core and the very foundation of the network of IndiGo today…clearly A350 is not the same as A321. But it is very much building on that very same family. And clearly our relationship with Airbus today is already deep and well developed. And there’s obviously similarities in a lot of elements there. So I think we will continue to have synergies in areas around the cockpit crew, around methodologies,” Elbers said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jet Airways founder Naresh Goyal seeks bail in money laundering case citing terminal cancer

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lenders to Go First weigh liquidation after court order on planes: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lenders to India’s Go First will meet later this week to discuss options for the bankrupt airline, including liquidation, after a court order allowed lessors of the aircraft to take back their planes, two bankers with Go First’s creditors said on Tuesday.

“There is no value left in the airline after the court order and chances of revival seem very grim,” one of the bankers said.

Go First’s resolution professional did not immediately respond to a Reuters’ email seeking comment.

The airline owes a total of 65.21 billion rupees ($780.88 million) to its creditors, which include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.

The Committee of Creditors (CoC) met on Monday and another meeting is scheduled for Thursday, both sources said.

The two bankers did not wish to be identified because they are not authorised to speak with the media.

Also Read: Delhi HC orders DGCA to deregister all Go First aircraft by next week

Go First has received two bids under the formal bankruptcy process – one from a consortium which includes budget carrier SpiceJet’s managing director Ajay Singh and Busy Bee Airways, and the second from Sharjah-based Sky One, Reuters previously reported.

Sky One’s Chairman Jaideep Mirchandani said on Friday the de-registration of aircraft does not alter its plans for the Indian aviation industry.

“If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors,” said Mirchandani.

Ajay Singh and Busy Bee’s majority shareholder Nishant Pitti did not respond to emails seeking comment.

Lenders may still choose to reject the bids on the table as they are not happy with the sums offered currently by both the applicants, the second banker said.

The bids include the value of a piece of land offered as collateral by the airline’s promoters, the banker said.

Reuters had earlier reported that lenders had sought higher bids.

While liquidation seems to be the most viable option under the present circumstances, it will be put to a vote once the committee formally rejects the two offers or if the applicants back out, both the bankers said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Boeing gets a welcome respite with a $10 billion bond offering

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Boeing Co. raised $10 billion from a bond sale on Monday that attracted about $77 billion of orders and allowed the plane-maker to ease some of its financial strains by refinancing part of its massive debt load.

The outsized demand for the bonds — which Boeing attracted by initially dangling a relatively juicy yield premium to prospective investors — allowed the company to ultimately shrink that premium before it priced.

The deal came just days after the company posted a first-quarter loss and said it burned through $3.9 billion, prompting Moody’s Ratings to cut the aviation giant’s credit grade to the edge of junk. Boeing shares rose as much as 3.6% on Monday.

The company sold bonds in six portions, with maturities ranging from three to 40 years, according to a person with knowledge of the matter who was not authorized to speak publicly. The issuance will likely take care of the company’s refinancing needs until the first quarter of 2026, according to CreditSights Inc., a research firm.

The strong investor demand helped the risk premiums on all tranches to shrink when the deal launched, the latest sign that US credit markets remain wide open despite growing fears that persistent inflation will prevent the Federal Reserve from lowering interest rates soon.

Investors have yanked cash from high-grade bond funds for the first time this year and the market is on pace for its worst performance since September on a total return basis.

Boeing Chief Financial Officer Brian West said last week during a conference call that he intends to protect the company’s investment-grade rating and that the company still has access to $10 billion of untapped credit lines.

The risk, and the company’s commitment to keeping high-grade ratings, may be reflected in pricing on the securities. CreditSights estimated the risk premiums on the deal are about 32 basis points below the average spread level of safest junk bonds — or bonds rates BB — on a weighted average basis, according to Matt Woodruff, head of aerospace and defense at the research firm.

The 40-year portion yields 2.25 percentage points more than Treasuries, said the person familiar with the offering. Initial discussions called for around 2.65 percentage points.

“This pricing reflects solid execution for a borrower that just recently got downgraded to one step above junk by Moody’s and with negative outlooks at all three agencies,” Woodruff said in an email.

That said, the warm reception “may say more about strong demand for new issuance than the prospects for Boeing credit,” said Bill Zox, a portfolio manager at Brandywine Global Investment Management.

Boeing included a provision in the bonds known as step-up coupons, in which investors get paid higher yields if the company is downgraded to junk. Money managers see the company’s getting cut to high-yield as a much bigger risk than going bust, which may be why customer orders for bonds were skewed toward securities maturing in 10 years or more, said Andrew Hofer, head of taxable fixed income at Brown Brothers Harriman & Co.

“A lot of people think Boeing can’t go bust due to its industry and defense position,” Hofer said. “Mostly they worry about downgrade risk. So they are buying long yield they believe they won’t have to worry about.”

The money manager didn’t participate in Monday offering because it believes investors aren’t getting paid enough for the risk they are taking, Hofer said.

Boeing plans to use the proceeds from the offering for general corporate purposes. West said last week that the company is monitoring its access to cash and believes it still has “significant market access” if it needs to supplement liquidity.

Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. managed the bond deal. Citi, BofA and Wells Fargo declined to comment while JPMorgan didn’t respond to a request for comment.

A spokesperson for Boeing declined to comment, instead referring to comments from West in the recent earnings call.

Boeing has the tools to defend its investment-grade status and the negative outlooks from the ratings providers give the company at least 12 months of runway to show progress in normalizing operations and moving toward the FAA production limit, Bloomberg Intelligence analyst Matthew Geudtner wrote in a note Monday.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dubai to have ‘world’s largest’ International Airport for $35 billion: All you need to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dubai, known as Venice of the Gulf, will soon have the world’s largest airport, its leader Sheikh Mohammed bin Rashid Al Maktoum has announced. The government has approved the designs for the new passenger terminal at the Al Maktoum International Airport, which will cost nearly $35 billion.

He further announced that when the terminal is fully operational, it will be able to handle up to 260 million passengers each year and will be five times the size of the current Dubai International Airport.

“We approved the designs for the new passenger terminals at Al Maktoum International Airport, and commenced construction of the building for AED 128 billion as part of Dubai Aviation Corporation’s strategy,” the Gulf emirate wrote on X.

Today, we approved the designs for the new passenger terminals at Al Maktoum International Airport, and commencing construction of the building at a cost of AED 128 billion as part of Dubai Aviation Corporation’s strategy.

Al Maktoum International Airport will enjoy the… pic.twitter.com/oG973DGRYX

— HH Sheikh Mohammed (@HHShkMohd) April 28, 2024

The Dubai Prime Minister and Vice President said that Al Maktoum International Airport will enjoy the world’s largest capacity, reaching up to 260 million passengers. “All operations at Dubai International Airport will be transferred to it in the coming years. The airport will accommodate 400 aircraft gates and feature five parallel runways,” he said. “New aviation technologies will be employed for the first time in the aviation sector.”

“We are building a new project for future generations, ensuring continuous and stable development for our children and their children in turn. Dubai will be the world’s airport, its port, its urban hub, and its new global centre,” he added.

Features of Al Maktoum International Airport:

– The airport will be able to handle up to 260 million passengers a year.

– The airport will feature 400 terminal gates and five parallel runways.

– The cost of the new terminal will be nearly 128 billion AED ($34.85 billion).

– The airport will host the world’s leading companies in the logistics and air transport sectors.

– The size of the new project will be five times the size of the current Dubai International Airport and in coming years, all operations of the current airport will be transferred to it.

– The total area announced for the new multi-billion-dollar project is 70 square kilometres, with an annual cargo capacity of 12 million tonnes.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emergency slide falls off Delta Air Lines plane, forcing pilots to return to JFK in New York

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport. Delta said that after takeoff the pilots got an alert about the emergency slide on the plane’s right side and heard an unusual sound coming from that area of the Boeing 767 jet, which is listed as having been manufactured in 1990.

The Federal Aviation Administration said the crew reported a vibration. Pilots declared an emergency so the flight could be be routed quickly back to the airport, and the plane landed and taxied to a gate under its own power, according to the airline. There were 176 passengers, two pilots and five flight attendants on board the flight, which was scheduled to fly to Los Angeles. Delta said it put passengers on another plane to California.

Delta said the plane was removed from service for evaluation and it was cooperating with investigators and supporting efforts to find the slide. “As nothing is more important than the safety of our customers and people, Delta flight crews enacted their extensive training and followed procedures to return to JFK,” the airline said in a statement.

Also Read: Boeing credit outlook gets gloomier as Fitch also turns negative

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Boeing credit outlook gets gloomier as Fitch also turns negative

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fitch Ratings became the third major credit grader to turn pessimistic on Boeing Co. as the planemaker’s crisis brings scrutiny to its balance sheet.

The ratings company lowered the outlook on its BBB- rating to negative from stable, according to a statement on Friday. S&P Global Ratings did the same a day earlier, which followed Moody’s Ratings downgrading the aerospace giant to a step above junk Wednesday after it released first-quarter results.

Boeing said it burned through $3.9 billion of cash in the first quarter as it slowed 737 Max production in the wake of a near-disaster involving one of the planes in January. The company predicted another “sizable” use of cash this quarter.

Fitch said its negative outlook reflects “heightened execution risks” at Boeing the next year or two as it normalizes production, navigates seasonal cash-flow swings and repays debt, among other issues. The new outlook also incorporates Fitch’s view that Boeing could issue new debt to guard against early 2025 cash-flow risks.

Boeing Chief Financial Officer Brian West said during a Wednesday conference call that he intends to protect the company’s investment-grade rating, and that the company still has access to $10 billion in untapped credit lines. He added Boeing is monitoring its access to cash and believes it still has “significant market access” if it needs to supplement liquidity.

While downgrading Boeing to the brink of junk, Moody’s also put its outlook at negative, which it defines as meaning a company faces the chance of a ratings downgrade in the medium term. That’s commonly seen by market participants as 18 to 24 months.

Fitch said it could stabilize its outlook if Boeing delivers more than 100 of its already-built 737 Max from inventory and half of its inventoried 787 Dreamliners by early next year while boosting 737 production toward 38 jets per month.g

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo shares hit all-time high after placing order for 30 wide-body aircraft from Airbus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of InterGlobe Aviation Ltd., the parent of the country’s largest airline IndiGo, gained up to 4% on Friday to hit a record high of ₹3,958.80. This was after IndiGo placed its first-ever order for wide-body aircraft as the company intensifies its efforts to take a bigger slice of the international travel business from dominant Gulf airlines.

The low-cost carrier placed an order for 30 A350-900 aircraft and expects the deliveries to begin in 2027. It also has purchase rights for an additional 70 Airbus A350 family planes, according to a Reuters report.

While Airbus no longer publishes prices, its latest deal with IndiGo’s would be worth more than $9 billion, the report said quoting the last catalogue rates published in 2018. The report also added that airplanes in such bulk deals are sold for less than half of the official price.

“The exact configuration of the aircraft will be decided at a later stage, and the deliveries are expected to start from 2027,” IndiGo said in an exchange filing. The airline also said that it has Purchase Rights for an additional 70 Airbus A350 Family aircraft, at its discretion, for possible future needs under certain conditions.

“Fleet of 30 Airbus A350-900 aircraft will allow IndiGo to embark on its next phase of becoming one of the leading global aviation players. This reaffirms IndiGo’s belief in, and commitment to, the growth of India, and in our strategic partnership with Airbus,” said Pieter Elbers, the chief executive officer of IndiGo.

IndiGo, which has a 60% share in the country’s domestic aviation market, is planning to double its total capacity by the end of the decade and expand its network in global markets.

The stock was trading 3.41% higher at ₹3,942.45 apiece on the NSE. IndiGo shares have risen 32% so far this year and are up 95% in a year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo orders 30 wide-body aircraft from Airbus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exclusive | No data privacy concerns around DigiYatra: CEO 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The DigiYatra Foundation has been facing a lot of questions from air travellers and experts on the privacy of the users data. The DigiYatra Foundation which runs the facial recognition tech across 14 airports in the country, recently also dropped it’s vendor, Dataevolve, after various reports pointed out an alleged data breach in which certain data of passengers was compromised. CNBC-TV18 exclusively spoke to Suresh Khadakbhavi, the CEO of DigiYatra foundation.

Q: There have been concerns around the Digi Yatra Foundation not having full control of the data since it’s inception, this has been flagged by many experts since the beginning. Who has the control over the data?

A: The fundamental construct of DigiYatra is privacy by design, the whole concept is based on this. We use a self sovereign identity which enables passengers to take charge of their data. Neither DigiYatra Foundation or service support partners have access to the data. The data is stored in a secure wallet in the users phone. There is no central storage of data. There is no chance of data leakage or threat.

Q: Dataevolve which is under investigation by the Andhra Pradesh police was handling the digital infra of the app, although the foundation has parted its ways with the company, but why did the DYF consider Dataevolve which was a single man-led company?

A: Dataevolve was selected through startup challenge by the Niti Aayog under Atal Innovation Mission. Under this initiative we wanted to build this ecosystem with the help of an Indian startup.

Q: A user on social media platform X pointed out that Dataevolve was sending data to the AWS server, whereas the foundation has always had this stance that no one has control over the data, what would you like to comment on this?

A: The whole fundamental connect of DigiYatra is privacy by design and self sovereign identity. This means there is no central storage of data by the DYF. There is no way that a leakage could have happened.

Q: As Dataevolve has been completely removed from DigiYatra, so are there no data privacy concerns now?

A: There have been no data leakage concerns and there’ll never be any concerns in the future. Even the foundation has no access to data. Whenever a passenger deletes the app, the entire data is deleted right from there. The data remains in the app and the passenger has full control over it.

Q: Why did DYF decide to come out with a new app instead of updating the old app?

A: We planned to come with a new app due to architectural changes. Architectural changes being made in sync with growth plans from 14 airports to 28 airports. New architecture comes with new features that will be revealed with time. New features to include passport based enrollment etc. New features required us to rearchitect the new app.

Q: While usage of DigiYatra is voluntary, however many users on social media have complained that they’re being forced to sign up for the app.

A: Don’t think anyone is being forced to download DigiYatra, you can always say no.

Q: What are the preparations for rolling out to other airports? How would you ensure complete safety of personal passenger data?

A: 14 airports currently live with DigiYatra. Recently we also completed Goa Manohar Airport & Chennai Airport. 13 airports will be added by the end of this month, everything is on track airport testing under progress.

Q: What is the Scope of the DYF, what are the other projects that you’re working on right now?

A: DigiYatra foundation is working on passport based enrollment, but nothing in the near future. This will enable international passengers to enroll under DigiYatra

Q: How many employees does the foundation have and what’s the revenue model?

A: DigiYatra Foundation is funded by the airports. This is an industry led initiative which enhances passenger experience at airport. DigiYatra optimises utilisation of the airport. DigitYatra trying to enhance efficiency of the airport.

Q: Do you accept that there have been data breaches in the past, how much data has been compromised?

A: We don’t store any kind of data, there is no possibility of data leak.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow