Tag: aviation

No delay by DGCA in issuing pilot licences: Aviation ministry

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

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The Aviation Ministry on Thursday (September 21) dismissed reports alleging staff shortage at the Directorate General Of Civil Aviation (DGCA), causing delays in issuance of commercial licence to pilots.

The Ministry clarified that the DGCA is meeting indicative timelines and issuing commercial pilot license in 20 to 30 working days despite an increase in the number of applications.

“The indicative timelines published for Issue & Conversion of Commercial Pilot License (CPL) by DGCA is 20 & 30 working days respectively. DGCA has been meeting the indicative timelines despite an increase in number of applications. Average timelines achieved for applications during 2023 for  CPL Issue & Conversion is 22 and 31 working days,” the DGCA said.

The clarification comes amid reports that DGCA is taking two months to issue licences to trained pilots due to staff shortage.

The Ministry stated that the DGCA has 15 posts designated for flight crew and licensing against which 12 officers are currently posted.

“On the issue of staff position at DGCA, it is clarified that the total sanctioned strength of Operations Cadre in DGCA is 228. These 228 posts are spread across various Directorates in DGCA, which perform various regulatory functions such as flight crew licensing and examination, ATCO licensing etc. Of these 228, the sanctioned strength of Technical Manpower in Flight Crew  Licensing Directorate in DGCA HQs is 15, against which 12 officers are currently posted,” the DGCA added.

The Ministry highlighted that pilots’ applications where prompt compliances are ensured by the applicants are approved faster while some applications take more time as the applicants are not able to adhere to compliances laid down by the DGCA.

“As on date 25 applications are in process with DGCA. 7 applications have crossed the threshold of 60 days, of which in five applicants are yet to respond to DGCA observations. In the remaining two cases, approvals are expected to be granted by the end of the month provided all requirements are complied with,” the aviation regulator stated.

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

150 more Go First staff resign in 2 weeks, exodus to continue if salaries delayed: Sources

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

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Even as grounded airline Go First struggles to restart operations, it faces another roadblock as employees, upset at not having received their pay for three months, have started looking for jobs elsewhere.

“Employees are frustrated as salaries have not been paid for May, June and July, despite promises of retention bonuses and a quick restart,” a senior executive working with the airline told Moneycontrol.

He added that after the initial rush for the exit May, there was a tapering off in the attrition rate. “Around 20 people would quit every week, but that was expected. Most employees with five-plus years of experience with the airline were standing with the airline,” the executive said.

But since the beginning of this month, he said, employee dissatisfaction has only grown and there has been an increase in resignations.

“Around 150 employees, including 30 pilots, 50 cabin crew members and 50 ground handling and engineering employees, have put in their papers in the last two weeks,” another executive working with the airline said.

The second executive said that employee sentiment has been badly hit after the Supreme Court on August 7 refused to entertain Go First’s appeal against a Delhi High Court order that allowed lessors to inspect and carry out maintenance work on their 30 leased aircraft twice a month.

Emails sent to Go First remained unanswered at the time of publishing.

A third executive said that if salaries are not paid to employees soon, a rash of resignations is expected. “None of the departments has been paid for three months now, employee sentiments are at an all-time low and a mass exodus is expected,” this executive said.

The airline’s resolution professional had earlier this month sent an email to employees saying that Go First’s cash flows have been impacted due to challenging circumstances.

“We are working tirelessly to resolve these challenges and restore normalcy as early as possible,” Shailendra Ajmera said in the email.

Similarly, Go First Chief Executive Officer Kaushik Khona had said that salaries would be paid by August 10 but employees Moneycontrol spoke to confirmed that salaries have not been paid.

During the employee interaction earlier this month, Khona noted the challenges faced by the airline in getting its funds parked with banks. He pointed out that Go First has been unable to access Rs 5 crore and Rs 35 lakh from the Central Bank of India and IDBI Bank, respectively.

Khona also said the airline was lucky to secure Rs 56 crore in the past few months despite zero operations and this amount was used to pay insurance premiums and salary advances.

On June 26, the Committee of Creditors (CoC), which include Central Bank of India , Bank of Baroda, Deutsche Bank, and IDBI Bank approved the request for additional funding worth Rs 400 crore.

Last week, stressed unpaid employees who were left with doubts went to the Andheri East, Mumbai headquarters of Go First to seek some answers but Ajmera was not in office.

The beleaguered low-cost airline has also sought emergency funding of Rs 100 crore from its lenders to keep itself afloat and to meet mandatory liabilities such as insurance. The funding will be used by the airline for critical expenses, Ajmera told the committee of creditors.

Go First on May 24 informed its employees that the April salary would be fully paid to them before the carrier restarts operations. “The CEO has assured that the salary for the month of April will be credited to your account before the commencement of operations. Furthermore, from the coming month, the salary will be paid in the 1st week of every month,” Captain Rajit Ranjan, Go First vice president, flight operations, had said in an email sent to the employees.

Go First had around 7,000 employees at the time it declared voluntary bankruptcy on May 2. The Wadia Group-owned airline halted operations and applied for insolvency resolution citing a financial crunch due to the absence of engines and spares that have grounded half of its fleet.

The airline also sought interim directions to restrain lessors from taking back aircraft and the regulator from taking adverse action against it.

Khona had in May told Moneycontrol that Go First was burning about Rs 200 crore every month since November and could no longer afford it and had to file for insolvency before the National Company Law Tribunal.

The airline hopes to resume operations as soon as possible. Khona said Go First needs at least 20 aircraft to return to service and break even on daily operations.

The airline blamed Pratt & Whitney for supplying faulty engines and failing to replace them in a timely manner, resulting in half of its 54 aircraft fleet being grounded.

In May the airline had moved a plea before a court in Delaware, United States, seeking enforcement of an order issued by the Singapore International Arbitration Commission (SIAC) against American aerospace manufacturer Pratt & Whitney.

Go First, in the emergency petition moved before the Delaware Federal Court on April 28, called for a legal order to force Pratt & Whitney to comply with SIAC’s two arbitral awards, issued on March 30 and April 15.

The SIAC had, on March 30, ordered Pratt & Whitney to provide Go First with at least 10 serviceable engines by April 27, 2023, and the remainder by the year-end.

Go First will be able to return to full-scale operations by September 2023 if Pratt & Whitney provides the airline with the engines, as stipulated in an arbitration order, Khona noted.

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

‘Gold plating’ of airports should be avoided, travel cost should remain in common man’s reach: Parliamentary Panel

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

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The government should ensure that development of infrastructure at airports is cost-effective and the cost of travel remains within the reach of the common man, a Parliamentary Panel has recommended while voting against the concept of “gold plating” of airports.

The panel headed by Rajya Sabha MP Sujeet Kumar has said that the most important stakeholder in the sector is the common passenger whose aspiration and need to undertake air travel will deepen with the passage of time and growth of the economy. The committee has also suggested that user charges should remain affordable and competitive as compared to other airports in the Asia Pacific region.

Also Read: IndiGo is not eyeing a stake in GoFirst, says CEO Pieter Elbers

“India is a developing country and passengers are price conscious. In our national civil aviation policy, affordability and sustainability have been emphasised by the government. The Committee observes that maximum people use the airports just for travel, do the baggage check-in, get their baggage on arrival and leave. Other peripherals cannot be given that much importance as could rather be given to the passenger service,” the panel said in its report tabled in Rajya Sabha.

“It is true that the quality of airport infrastructure is a vital component of the overall transportation network as it contributes directly to the country’s international competitiveness and the flow of foreign funds. The Committee is, however, of the view that whilst the airport terminals need to be comfortable and facilitate a smoother and hassle free journey, they need not be overly opulent and the concept of gold plating of airports by the private operators should be avoided,” it added.

Gold plating refers to incorporating expensive costly features or refinements that tend to push up the cost of a project.

Noting that India is a “resource constrained” country, the panel has recommended that the government must ensure that modernisation of airports, both Airport Authority of India (AAI) run and privately run, must provide the infrastructure efficiently and in a cost effective manner, using the technology so that the cost of operations is brought down.

“Government should ensure that cost effective services are provided to passengers as well as airline operators and the cost of travel remains within the reach of common man and the vision envisaged in the National Civil Aviation Policy to create an ecosystem to make flying affordable for the masses is realised,” it said.

The panel report on “Petition Praying for Modernisation of Airports by Airports Authority of India” has suggested the government should develop world class standards but at the same time ensure they are cost-effective and user charges remain affordable and competitive as compared to other airports in the Asia Pacific region.

The committee also observed that despite the phenomenal growth in traffic, most Indian carriers are reeling under losses and in this context cost effective operations and sustainability are a must for airlines to operate in the long run.

“Public funds for development of airports are getting scarcer. Since the quantum of funds required for creation of world class civil aviation infrastructure facilities is huge, private sector involvement in the airport sector has got to grow so that the large gap in resources could be bridged and greater efficiency in management of airports in the country could be brought in.

“Taking these facts into consideration, the Committee is of the view that PPP in the airport sector has been a success story in terms of creation of world class airport infrastructure and service quality and given a lot of growth in aviation market,” the panel report said.

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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

Why IndiGo shares are under pressure despite strong June quarter earnings

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

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IndiGo shares slipped over five percent during the day in the August 3 trading session. This, despite a stellar quarterly result in which the airline recorded the highest ever profit and margin.

IndiGo reported its highest-ever quarterly profit of Rs 3,090.6 crore in the June quarter, as tailwinds of strong operational performance and favourable market conditions bolstered the financials of the country’s largest airline.

The carrier’s parent, InterGlobe Aviation, also posted its highest-ever quarterly total income of Rs 17,160.9 crore in the first quarter of the current fiscal and also announced plans to set up a venture capital entity.

Also Read: IndiGo CEO Pieter Elbers confident of strong performance, says P&W engine issue not a concern

Despite the strong result and positive commentary, IndiGo shares were trading 3.7 percent lower at 12:15 pm. Here’s a look at likely factors why the stock is under pressure

1) Sell on news, stock has rallied 38% since March 2023

The stock is witnessing some profit booking in today’s session as it has rallied over 38 percent since the lows in March this year.

2) Risks in the second quarter include higher fuel prices and lower yields

Brokerages have pointed out that in the first quarter IndiGo benefited from strong pricing and fuel-led lower costs and competitors suspending operations. However, Macquarie says in the near term, yields are expected to be soft.

3) Will the Gangwal family sell more stake?

Rakesh Gangwal and family still hold nearly 30 percent stake in the IndiGo parent InterGlobe Aviation. Rakesh had resigned from the company’s board of directors in February last year stating that he would gradually reduce his equity stake over the next five years.

Earlier in June a report suggested that Gangwal family could sell further stake since the five month lock in period is over. As per a CNBC Awaaz report, the Gangwal family may sell 5-8 percent of its stake in Interglobe Aviation via a block deal.

Also Read: IndiGo is not eyeing a stake in GoFirst, says CEO Pieter Elbers

Meanwhile, looking at the bright side, IndiGo saw a seasonally strong quarter with a boost in Indo -Europe travel. In June, the airline also announced the launch of codeshare flights to the United States through Istanbul in partnership with Turkish Airlines. The announcement was part of the airline company’s effort to expand international connectivity.

Also since GoFirst created a supply vacuum as its flight operations were suspended, IndiGo’s market share is likely to trend upwards.

IndiGo has maintained its capacity guidance of above mid-teens for the 2023-24 fiscal, with around 40–50 planes. For the second quarter, IndiGo expects capacity to be up 25 percent on a year-on-year basis, which is slightly higher than expectations.

In its statement after the earnings, the airline also said near term P&W engine issues had limited impact on IndiGo’s capacity plan. It said “single-digit” numbers of planes are expected to be impacted in the first phase of inspection of engines by Pratt & Whitney for certain anomalies.

Also Read: Indigo CEO files flight plan for a stronger brand; puts organic growth front & centre: Exclusive Interview

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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 is not eyeing a stake in GoFirst, says CEO Pieter Elbers

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

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India’s largest airline IndiGo is not eyeing a stake in NCLT-admitted peer GoFirst, CEO Pieter Elbers told CNBC-TV18’s Shereen Bhan in an exclusive interaction.

Elbers mentioned that the current focus is on developing their own company. “Again, I am not reacting to any rumours (On the GoFirst stake) – but IndiGo is focusing on developing our own company,” Elbers said, adding that the airline has placed orders of nearly 1,000 planes which are yet to be delivered.

“So we are in a strong position to build our company and build our brands and that is really our focus going forward,” IndiGo’s CEO said.

However, Elbers did mention during the company’s quarterly earnings call that it is in touch with airports to temporarily give them GoFirst slots.

The Wadia Group-promoted Go First is currently undergoing insolvency proceedings where the National Company Law Tribunal will resume hearings on August 7. It has suspended services till August 3 due to operational reasons and further updates. The airline is looking to resume limited flights on select routes.

IndiGo has expanded its international operations through codeshare agreements with local airlines. In partnership with Turkish Airlines, it is now flying to 34 European destinations. Elbers also mentioned that the US codeshares are doing well with connections to Istanbul. The airline is now connecting over 110 destinations with over 500 routes.

Later this week, IndiGo will also be commencing flights from Mumbai to Nairobi, marking its foray into the African continent. There are also direct flights from Mumbai to Jakarta, and from Delhi to Tbilisi, Almaty and Tashkent that will begin this week. “And with that, you see that our relative share of available seat kilometers is moving from the low 20s to a 30 percent of our network,” Elbers said.

However, Elbers told CNBC-TV18 that despite the growing share of IndiGo’s international business, the domestic market remains its foundation and backbone. Shivamogga in Karnataka will be the airline’s 79th domestic destiation, Elbers said. IndiGo has added nearly 200 new routes since the pandemic.

“Earlier this year, we connected Delhi to Dharamshala. Now we’re not in fact only connecting Delhi to Dharamshala, but suddenly it connects over Delhi to a lot of different places. So our strategy domestic really will continue to add destinations, and more so adding a number of routes,” he said.

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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

Nelco expects aerospace revenue to surge as domestic airlines embrace inflight WiFi

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

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The aviation industry has been witnessing a revolution in passenger expectations, with inflight WiFi (wireless fidelity) becoming a critical amenity. NELCO is at the forefront of enabling in-flight connectivity solutions, positioning itself to benefit from the forthcoming aerospace revenue surge. As the demand for in-flight WiFi services rises, NELCO’s expertise and investments in this area are likely to position the company as a key player in the aerospace connectivity market.

NELCO, an integral component of the Tata Group with a market value of $106 billion, is a prominent Satellite Communication (SatCom or VSAT) Service Provider in India. The company specializes in delivering extremely dependable data connectivity solutions throughout the country, with a primary focus on serving the enterprise sector.

In an interview with CNBC-TV18, PJ Nath, MD and CEO of NELCO shared insights into the aerospace industry’s potential and company’s expansion plans. He emphasized the pivotal role that WiFi services play in enhancing the passenger experience and how it can be a game-changer for the aerospace industry in India. Furthermore, he revealed NELCO’s commitment to expanding its business through strategic investments to capitalize on emerging opportunities.

With the increasing reliance on digital connectivity in everyday life, travellers now expect seamless internet access even when soaring thousands of feet above the ground. By offering inflight WiFi, domestic airlines can attract and retain more passengers, while also gaining a competitive edge in the market.

He said, “The big jump will be happening when the domestic airlines start using WiFi on the aircraft, which is about a year from now. So, we will see a large jump in the aero service revenue at that time, but overall we are bullish on that and we see a similar growth that we have been seeing so far in the aero and maritime business as well.”

Talking further about business expansion, Nath said that as a leading provider of satellite-based communications and enterprise solutions, NELCO is well-positioned to cater to the evolving needs of the aviation industry. By investing in cutting-edge technology and infrastructure, NELCO aims to enhance its capabilities and offer innovative solutions to airlines seeking to provide superior in-flight connectivity to their passengers.

Furthermore, NELCO’s expansion plans are not limited to just the aerospace sector. As a forward-thinking company, it aims to explore various growth avenues and diversify its offerings to stay ahead in the ever-changing business landscape.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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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

Midair Musings | Rising airfares and a policy dilemma — here’s why the situation won’t ease anytime soon

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

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As airfares continue to stay elevated the country is caught in a policy dilemma. Namely, between free market dynamics and adhering to stated policy goals of affordable and inclusive travel.

Add to this the market reality of two large airlines commanding more than 80 percent of the market and the funding of weaker airlines by public money via the Emergency Credit Loan Guarantee Scheme (ECLGS) now in excess of $125 million. Even though all quarters claim that they are doing the best given the circumstances, the situation remains worrisome. 

Airlines indicate it is a mix of input costs, supply chain issues and soaring demand; regulators indicate that airlines have been directed to self-regulate; and passengers maintain they are screaming into a storm.

The situation will not ease anytime soon and the October to December quarter will see even higher fare levels. The ongoing debate: whether to intervene or let free market dynamics take their own course?

Air Travel and the government’s policy vision

The much-publicised National Civil Aviation Policy of 2016 had a stated vision of creating an ecosystem to make flying affordable for the masses. This was put out at a time of “rail – air” parity or the fact that airfares were at levels at or below rail fares. Discounting was the key lever and airlines were selling below cost. But as the money flowed to the sector due to a variety of reasons not all linked to aircraft operations, several areas remain unaddressed.

The pandemic changed most of this and revealed significant weakness across airlines. It became clear that not all airlines would survive. Policy measures were taken including extending the Emergency Credit Loan Guarantee Scheme (ECLGS) to airlines and setting up of price floors and ceilings thereby limiting the ability of airlines to discount heavily. Consequently, the ability of flyers to access extremely low fares was also curtailed. At the end of the pandemic, the country emerged without any airline bankruptcy.

Also read: Airfare in India saw 41% increase; highest in Asia-Pacific and Middle East

But that was perhaps the only saving grace. 2021 was a brutal year for the industry. Jobs were lost, salaries slashed and uncertainty prevailed. The gravity of the situation was laid thread bare when country’s most successful airline reported a quarterly loss in excess of $360 million for the April to Jun timeframe which traditionally was the most profitable quarter.

The silver lining came towards the end of the year in the form of the finalisation of the sale of the national airline Air India and buzz of a new startup airline named Akasa. Both events combined signalled a continued interest and belief in the market. But the developments notwithstanding, the market reality was that several airlines continued to be extremely fragile. Credit stood constrained and cash flows tepid at best.

The year 2022 saw the conclusion of the sale of the national airline Air India. This followed with the buyout of AirAsia India and the announcement of a merger of Vistara with Air India. All this while the strongest airline in the country, Indigo, continued to expand. By the end of 2022, it had more than 50 percent  of the domestic market.

Fast forward to July 2023 and the country now has an airline industry that is a clear duopoly. With 2 airline groups commanding more than 80 percent of the market, both well capitalised and both well managed, pricing power inevitably follows. Demand is soaring and airlines like any other business price at levels that are in line with the market demand. But demand itself is showing interesting characteristics where passengers while have been consistently paying higher fares. Discounting fares in such a situation would lead to sub optimal demand supply dynamics or as economists term it: dead weight loss.

The reality is that the airline industry in India is struggling

With the topic of high airfares, there has been a disproportionate focus on narrative while wishing away the very real challenges of the industry. While it is true that airfares are at 3X to 5X from previous levels, it is also true that structural challenges of the industry remain unaddressed.

Add to that a significant capacity shortfall where flown capacity is 5 to 7 percent below pre-pandemic levels due to supply chain issues, weakened competitors and ongoing consolidation. As of today, ATF taxation continues to not provide for a level playing field; airport charges continue to be high; the lack of secondary airports further limits competition; the lack of in-country and rupee financing adds to costs; and banks are wary of the sector as a whole. This is reflected in the razor thin margins and history of losses. The numbers speak for themselves. Forecasts indicate that the airline industry in India will lose more than $1.7 billion.

This builds on losses in excess of $2 billion in 2022. Return on capital for the industry is negative. Balance sheets are brittle. Financials are fragile. Only one airline has remained profitable and it now sits on a monopoly market share.

Private investors have historically shunned the sector so this time is no different. But even bank credit to the industry stands constrained. On an industry level the balance sheets don’t give much confidence and in most cases lenders are lending due to parent company strength as opposed to the strength of the business. The credit quality spreads are to a point where there are only the strong airlines and the weak airlines; there is no middle.

Input costs for the industry remain high. This is reflected in the financial position of airlines. All airlines with the exception of Indigo continue to bleed. And in significant amounts. And the losses in no small part are driven by high fixed costs that are not covered by adequate revenue. Ironically, the current situation allows airlines to do that and thus focus on reasonable returns on capital which can then fund growth. But this is not in alignment with policy goals.

The policy dilemma facing the government

As the government continues to focus on achieving a 5 trillion dollar economy, this will necessarily include aviation. This is because of the multiplier effects the industry produces in terms of economic growth, jobs and skilling. But for that airlines that sit at the apex of the aviation ecosystem must thrive. And failing structural changes, high airfares are the way to cover costs.

The policy challenge facing the government is that of inclusiveness and affordability. Affordable for the masses means affordable for all income levels or at the very least for majority of income levels. Current airfares don’t cater to this policy goal. And there is also the market reality that in India, air travel has changed over the last two decades.

It is now not limited to the high end businessman but also the thousands of traders driving the MSME sector, the student going to meet his parents, the son visiting the village, the doctor volunteering time in remote areas, the thousands of migrant workers visiting home and the new generation exploring new places. Air travel is no longer a luxury – at least that is the policy goal.

One of the arguments put forward is that growth will take care of the challenges. And indeed, as the economy grows and as the middle class grows, air travel will become increasingly more affordable. But even in a base case scenario, that will take time. Alternatively, several quarters are pushing for policy intervention where airfares are regulated to be at levels that provide for more inclusive access. An action that is easier said than done and where implementation and monitoring remains a challenge even in the best of times.

Some argue that as India races towards the goal of a 5 trillion dollar economy, the regulatory landscape has to be more conducive to industry. Profits cannot be looked at with disdain. Which essentially means fewer regulations. Thus the slogans like minimum government maximum governance or that the business of government is not to be in business in the first place. Put in an aviation and airfares context this again poses a dilemma. Of whether to intervene or to let market forces determine prices. Two different approaches. Two different rationale. No easy answers.

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

Jet fuel gets costlier as OMCs increase ATF prices after four months of cut — Check new rates here

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

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Oil marketing companies (OMCs) increased aviation turbine fuel (ATF) prices by an average of Rs 1476/KL on July 1. This comes after four consecutive months of rate cuts.

From today, jet fuel in Delhi will cost Rs 90,779.88/KL, up from Rs 89,303.09/ KL last month. ATF price in Kolkata has seen a sharp uptick reaching Rs Rs 99,793.45/KL from Rs 95,963.95/KL earlier. In Mumbai and Chennai, jet has been priced at Rs 84,854.74/KL and Rs 94,530.51/KL, respectively.

The hike in jet fuel prices comes at a time when air fares have been skyrocketing. Whether or not the move will lead to a further increase in air ticket prices remains to be seen.

However, earlier on June 14, the Indian government had claimed that flight ticket prices on some routes have dropped as much as 56 percent in recent days.

Sources had told CNBC-TV18 that the decline in airfares came against the backdrop of the recent interventions and meetings held by the government. They said the government was monitoring and holding daily meetings on the issue.

“Rise in airfares has been mostly seen on select routes that were earlier being serviced by Go First. A meeting with the airlines was held on June 5, 2023, where airlines were strictly advised to self-regulate fares on certain select routes that have seen considerable surge pricing of late. A mechanism for ensuring reasonable pricing within the high RBDs (Reservation Booking Designator) will be devised by airlines,” government sources had then 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

Go First former CEO Kaushik Kona, IRP Shailendra Ajmera at DGCA office, likely to submit revival plan

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

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Crisis-hit airline Go First’s former CEO Kaushik Kona and the interim resolution professional (IRP) Shailendra Ajmera reached the aviation regulator’s office on June 28. They are likely to submit the revival plan to the Directorate General of Civil Aviation (DGCA).

Earlier this week, three people familiar with the matter had told CNBC-TV18 that Go First’s lenders have given an in-principle nod for approximately Rs 425 crore interim financing to the cash-strapped airline. The interim financing is intended to support the day-to-day operations of the airline and facilitate its revival, they said.

Banking executives, meanwhile, said the final approval from the banks is contingent upon the DGCA granting permission to Go First to restart its operations.

“We will seek individual board approval for financing only once there is an assurance from DGCA about restarting Go First operations. As of now, this is only in-principle approval which IRP (insolvency resolution professional) had sought,” said one of the bankers to the airline. This move underscores the cautious approach taken by the lenders, ensuring that the airline has the necessary regulatory clearance before disbursing funds.

The developments come as Go First, formerly known as GoAir, has been grappling with financial difficulties, which led to its admission into the Insolvency and Bankruptcy Code (IBC) on May 10. The airline has outstanding debts amounting to Rs 6,521 crore, owed to various banks including Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank.

The cash-strapped airline filed for bankruptcy, blaming ‘faulty’ Pratt & Whitney engines which led to the grounding of half its fleet, and revenue hit.

As part of the ongoing financial restructuring efforts, Go First has cancelled all its flights until June 30, as of now. This temporary halt in operations is aimed at minimising costs and conserving resources while the airline works towards resolving its financial woes.

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

Modi US visit | Jyotiraditya Scindia says PM’s tour will be historic but silent on GE deal

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

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Civil aviation minister Jyotiraditya Scindia said Prime Minister Narendra Modi’s US visit will be a historic one. However, he refused to comment on the GE deal. “I can’t say anything on GE before it is signed,” he told CNBC-TV18.

Last month, news agency Reuters reported, quoting sources, that the US government is looking at signing a deal that will permit General Electric Co (GE) to produce jet engines that will power the military aircraft in India.  A deal regarding the same is expected to be announced during PM Modi’s first State visit to the US., the sources said.

Scindia also told CNBC-TV18 that airfares have now fallen between 18 to 60 percent in the last 12 days after the government’s intervention. Earlier this month, Scindia held a meeting with representatives of airlines on Monday to discuss rising airfares. Scindia’s meeting with airline representatives comes in the backdrop of airfares witnessing an abnormal surge, following the grounding of GoFirst. In fact, some of the key routes that GoFirst operated on were seeing a very sharp surge. India also witnessed the highest spike in international airfares in the Asia-Pacific, as per a study conducted by the Airports Council International (ACI).

Scindia said India is pioneering on many fronts. He said IndiGo signing a massive order of 500 aircraft with Airbus talks about the potentional of civil aviation in India. “It talks about unprecedented growth that the sector has experienced in the last nine years,” he said, adding that this ‘landmark’ transaction

This landmark transaction is close to the heels of Air India’s record order for 470 aircraft from Airbus and Boeing. “India has set another landmark with this largest ever recorded order by a carrier with any aircraft manufacturer around the world. This order will act as economic and employment multiplyer,” he said.

The minister said IndiGo’s latest order is larger than the fleet that India had in 2014. “A lot of new players like Akasa and many regional airlines have also come up in the horizon,” he said, adding that he was looking forward to the increase in India’s aviation infrastructure.

He said the metro airports capacity throughout is set to increase. “We’re thinking about creating an international civil aviation hub in India, Delhi will be the first hub,” he said.

On the supply chain issues that the engine and aircraft manufacturers are facing, he said he was confident they will get sorted out soon.

“It is time now for the aviation ecosystem to have a firm footprint in India,” he said. The minister said he was looking positively at international MRO companies setting up shop in India. “Tremendous transfer of technology will happen in India,” he added.

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