Tag: aviation

First airline from Northeast India, JettWings Airways, gets nod for commuter services

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

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Northeast India will soon have better regional connectivity under the UDAN scheme as the civil aviation ministry has provided a no objection certificate (NOC) to JettWings Airways to operate scheduled commuter air transport services. Once JettWings gets the approval for operations, it will be the first ever airline to operate from the northeast region of the country.

The airline in a statement said it initially plans to offer regional connectivity to destinations in the northeast and eastern regions, under the Ude Desh Ka Aam Nagrik (UDAN) scheme.

Sanjay Aditya Singh, the co-founder and CEO of the airline, said the airline would be working closely with the DGCA to complete all the formalities for the operations. “Once we are granted the AOC, we strongly believe and commit to becoming a reliable and sustainable airline with its roots deeply entrenched in northeast India,” he said.

Also Read: Airfares have more than halved on some routes from the past week, claims Indian govt — details here

He added that an airline based out of the northeast, with a sense of doing business in India, was much needed. “JettWings Airways shall strive to achieve the same in the next few months of our preparation as we near take off,” he said.

The chairman of the airlines Sanjive Narain said the airline, under the UDAN scheme, has a unique opportunity to make a significant impact on the northeast region by improving connectivity and creating new economic opportunities.

The airline plans to offer premium economy services as well as a loyalty programme.

“The JettWings Airways fleet will have state-of-the-art aircraft with dual-class configuration — business class and premium economy options. Once approved for flight operations, the airlines will be the first ever company from the northeast region to operate airline operations in the country,” the airline said in a statement.

In the recent past, northeast India has also seen a boost in terms of aviation connectivity. Earlier this year, civil aviation minister Jyotiraditya Scindia had said till 2014, there were only nine operational airports in the northeast. “Today, we have increased that to 16. Two states in the northeast didn’t have a single airport — Arunachal Pradesh and Sikkim. Now, Arunachal has three airports. Assam has four,” he had said.

On another note, the CEO of the airline Singh is also the Chairman of the Jettwings Group of Institutes.

The institute of aviation, tourism management and hospitality is based out of Guwahati, Assam. It also has a school of aviation, a business school, a travel school as well as a fashion, design and architecture institute.

According to its website, more than 15,100 students graduating from its institutes have been placed in 14 countries, so far. Their recruiters in the aviation industry include airlines such as Emirates, Vistara, Etihad, Singapore Airlines, Air Asia, and IndiGo, among others.

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Airfares have more than halved on some routes from the past week, claims Indian govt — details here

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

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The cancellation of Go First flights in early May led to a massive spike in airfares in the past month. However, the Indian government claimed on June 14 that the flight ticket prices on some routes have dropped as much as 56 percent in recent days.

Sources 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 said.

According to the below data shared by government sources, almost all sectors witnessed a decline in airfares.

The sources cited existing rules that state airfares are not regulated by the government and that Indian domestic aviation was totally deregulated. The Directorate General of Civil Aviation (DGCA) is not empowered for economic regulation of civil aviation. The government sources said imposing fare caps will lead to market distortion.

The development comes at a time when airlines have been facing supply chain issues which have led to the grounding of a certain portion of their fleet, which in turn has resulted in a capacity crisis amid rising demand.

“If we compare to pre-COVID-19, we are about 130 aircraft short. We never had such a capacity crisis in the sector that we have been tracking since 2003. So, this is quite serious and the logical outcome of that kind of capacity crisis is that the fares would go up,” Kapil Kaul, CEO of South Asia at CAPA, said earlier this week.

Meanwhile, Congress General Secretary KC Venugopal and Union Aviation Minister Jyotiraditya Scindia have been engaged in a spar on Twitter over the uptick in airfares.

Venugopal tweeted, “This entire flight price fiasco is unravelling the criminal extent to which the @MoCA_GOI neglected passenger welfare and the aviation sector. The more we dive deeper, the greater the mess we see. You have opened Pandora’s box, @JM_Scindia ji.”

This entire flight price fiasco is unraveling the criminal extent to which the @MoCA_GOI neglected passenger welfare and the aviation sector. The more we dive deeper, the greater the mess we see. You have opened a Pandora’s box, @JM_Scindia ji.

1. As per the Ministry’s own… https://t.co/YpwG70PuJG pic.twitter.com/hIUNLve7RC

— K C Venugopal (@kcvenugopalmp) June 13, 2023

Hitting back at Venugopal, Scindia said, “Armchair activist, @kcvenugopalmp Ji displays eloquence only when he raises questions but decides to not answer when questions are asked of him. Your turn to answer, sir. Be accountable and practice what you preach.”

Armchair activist, @kcvenugopalmp Ji displays eloquence only when he raises questions, but decides to not answer when questions are asked of him. Your turn to answer, sir. Be accountable and practice what you preach. Re-posting the questions:

a. Why was NER not a priority for… https://t.co/EPkr5JAF9J

— Jyotiraditya M. Scindia (@JM_Scindia) June 13, 2023

In his swipe at Scindia, Venugopal said that as per the ministry’s own affidavit in the Jet Airways insolvency case, airport slots are neither assets nor rights of the airline, but mere permissions granted on a ‘use it or lose it’ basis.

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India’s aviation market offers all kinds of opportunities, says Star Alliance CEO

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

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India is a critical aviation market for growth with all kinds of opportunities and Air India is on a strong mission to overhaul its business, according to airlines’ grouping Star Alliance’s CEO Theo Panagiotoulias.

Star Alliance, which has been in existence for more than 25 years, is a global grouping of 26 airlines, including Air India, Lufthansa, Singapore Airlines and South African Airlines.

Sounding bullish about the revival of Air India, a long time member of the alliance, Panagiotoulias said the airline is on a “very strong mission” and has embarked on a major overhaul of its business.

“India is a critical growth market and offers all kinds of opportunities,” he told PTI in an interview here this week.

He also emphasised that having Air India in the alliance is a huge piece of the puzzle of the global network.

His comments also come against the backdrop of Air India group taking various measures to strengthen its operations, including placing a historic order for 470 planes in February this year and expanding services.

Besides, India is one of the fastest growing aviation markets in the world and has witnessed a strong recovery in domestic air passenger traffic after being severely impacted by the coronavirus pandemic. Efforts are also going on to develop an international hub in the country.

After the pandemic, Panagiotoulias said there has been a global recovery with varying speeds. “I would say North America and Europe have recovered a lot quicker than the Asia Pacific region”.

On whether premium travel is on the rise after the pandemic, the Star Alliance chief replied in the affirmative.

“Premium travel has increased, especially leisure premium and not corporate premium. We are seeing a lot of people wanting to spend on personal experiences in a premium cabin,” he noted.

On whether the alliance is looking for more members, Panagiotoulias said the 26 members cover the global comprehensively.

Panagiotoulias has more than 25 years of international experience in the airline and aviation industry, and has just joined Star Alliance from Hawaiian Airlines.

Star Alliance was founded by five airlines from the Americas, Europe and Asia in 1997, and currently, it has 26 carriers as members.

The members come together at over 50 global hubs to offer smooth connections across a world-leading global network.

A management company based in Frankfurt and Singapore coordinates the alliance’s projects and activities, including airport co-location, digital infrastructure, frequent flyer integration and joint business lounge projects, as per its website.

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SpiceJet to induct 10 Boeing 737 aircraft starting September

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

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Indian airline SpiceJet on June 9 announced that it will induct 10 Boeing 737 aircraft beginning September 2023. The airline has signed a lease agreement for 10 Boeing 737 aircraft, which includes five 737 Max aircraft.

The budget carrier is also working on restoring and reviving its grounded aircraft that are expected to return to service soon.

Ajay Singh, Chairman and Managing Director of SpiceJet, in an exclusive interaction with CNBC-TV18 in April, had said the airline plans to revive the grounded fleet in the next two-three months.

On the Boeing aircraft development, Singh said, “There has been a significant surge in passenger demand and we are hopeful that this trend of increased demand will continue in the latter part of the year as well.”

“Accordingly, SpiceJet has been planning capacity addition to cater to the growing needs of the Indian aviation market. We will be inducting ten B737 aircraft between September-October 2023. The induction of these planes, which coincides with the peak travel season in India, will help us launch new routes and strengthen our presence on existing ones,” he added.

The announcement comes a day after SpiceJet announced that it has partnered with NYSE-listed FTAI Aviation on a CFM56 revitalisation programme. FTAI Aviation, an aftermarket provider of engine services, will provide SpiceJet with up to twenty engines on lease, inclusive of maintenance services.

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Go First ground staff and cabin crew get April salaries, pilots offered up to Rs 1 lakh retention allowance

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

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In an attempt to retain employees, cash-strapped airline Go First has credited salaries for the month of April to several employees including ground staff and cabin crew, sources told CNBC-TV18 on May 29.

GoFirst has also announced a retention allowance for pilots. While captains have been offered Rs 1 lakh, first officers will be given Rs 50,000, sources said, adding that the airline is also expected to come out with a longevity bonus.

The retention allowance will be applicable for all captains and first officers who are on payroll as on May 31, 2023, sources said.

The development comes after the aviation watchdog Directorate General of Civil Aviation (DGCA) on May 25 asked the airline to submit a comprehensive plan for the revival of its operations, including details about the availability of operational planes and pilots, within 30 days.

Also Read: Go First extends flight cancellations till May 30

The no-frills carrier, which is undergoing a voluntary insolvency resolution process, stopped flying on May 3 and lessors are looking to take back aircraft leased to the carrier.

The relaunch of the airline, however, looks tricky with still no clarity on if supplier Pratt & Whitney will deliver the engines.

Supply of engines is extremely crucial to getting Go First back in the skies. Over 50 percent of the airline’s fleet was already grounded when it filed for bankruptcy & the airline blamed the non-availability of engines for its downfall.

According to a Reuters report last week, Pratt and Whitney was refusing to provide engines to the airline, putting the relaunch plan into jeopardy. As per the report, Pratt and Whitney during the hearing in the Delaware court said there are no engines available to be sent to the low-budget airline.

Meanwhile, several aircraft lessors of Go First pitched before the Delhi High Court on May 26 for the deregistration of their planes by aviation regulator DGCA so they could take them back from the crisis-hit airline.

The lessors submitted before the high court that the denial of deregistration by the Directorate General of Civil Aviation (DGCA) is “illegitimate”.

Also Read: Go First gets 30 days to submit comprehensive restructuring plan for revival

Also Read: Go First asks employees to prepare for takeoff, relaunch plan still in the works

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Go First verdict highlights: Lessors cannot take possession of planes, rules bankruptcy appellate tribunal

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

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Go First Verdict highlights: India’s bankruptcy appellate tribunal pronounced its verdict on May 22 on a plea by aircraft lessors’ seeking setting aside of the moratorium granted to cash-strapped airline Go First by the bankruptcy court.  In a big relief for the cash-strapped airline, NCLAT upheld NCLT order granting a moratorium to the airline. It has refused to allow lessors to take back possession of aircraft. Catch Go First case LIVE updates here

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

Go First likely to resume flights on Delhi-Mumbai, Bengaluru, other metro routes by May-end or June 15

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

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Cash-strapped airline Go First could resume domestic flights on routes like Delhi-Mumbai, Delhi-Bengaluru and Delhi-Chennai by May end or June 15, sources told CNBC-TV18 on May 18.

Go First is considering resuming domestic flights with a small fleet of less than 10 aircraft, they said, adding that the airline is likely to resume operations on high volume routes.

However, resuming international operations is not a focus area till June end, they said.

The development comes a day after the crisis-hit airline, on its website, informed that it was extending the suspension of flight operations till May 26 due to operational reasons.

Go First, which is undergoing insolvency resolution proceedings, stopped flying on May 3. The aviation regulator Directorate General of Civil Aviation (DGCA) had also directed the airline to stop bookings till further orders.

“A full refund will be issued to the original mode of payment shortly… as you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly,” it added.

Also Read: Go First lessors’ seek bankruptcy appellate tribunal’s order to set aside moratorium, verdict likely on May 22

India’s bankruptcy court the National Company Law Tribunal (NCLT) admitted the airline’s voluntary plea insolvency resolution proceedings on May 10. Abhilash Lal has been appointed as the Interim Resolution Professional (IRP) to manage the affairs of the carrier.

Meanwhile, some lessors have also moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT’s decision.

The airline has also launched a claim management portal ‘gofirstclaims.in/claims’ for the Corporate Insolvency Resolution Process (CIRP) of Go First.

Meanwhile, Federation of Indian Pilots (FIP) has urged the government to relax the mandatory six-month notice period for airline pilots, quitting the company for better prospects.

In a letter to Civil Aviation Minister Jyotiraditya Scindia earlier this week, the airlines’ pilot body said that the rule is a stumbling block for pilots in securing jobs in other airlines, particularly in situations like the one grounded carrier Go First.

Also Read | ‘If they think Go First plea is malicious…’: IRP’s advice to lessors

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Akasa Air set to cross 20-aircraft fleet milestone, has international flights on its radar

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

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India is the world’s third-largest civil aviation market, contributing more than 5 percent to India’s GDP, and it is growing fast. Its market size is expected to grow by 2.5 times the current level by FY30, growing at a compounded annual rate of more than 14 percent.

As per the latest data available with the International Air Transport Association, or IATA, as of March this year, India was the third largest domestic air passenger market. The USA was at the top spot with close to 20 percent revenue passenger kilometres share and 83 percent passenger load factor or PLF.

Speaking to CNBC-TV18, Vinay Dube, CEO, Akasa Air, emphasised the importance of a competitive cost structure as one of the fundamental pillars of Akasa’s success.

Despite concerns about supply constraints, Dube expressed confidence in Akasa’s ability to maintain a healthy equilibrium between demand and supply. He attributed this optimism to the government’s significant investments in airport infrastructure. The expansion of airports from 70 to 140, with plans to reach 200, including key locations with existing constraints, bodes well for the growth and development of Akasa.

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In terms of fleet expansion, Dube revealed that Akasa is set to welcome its next aircraft within the next 60 days, pushing the total fleet count beyond the 20-aircraft milestone. This achievement will position the airline to commence international flights by the end of the year. The pace of growth remains impressive, with plans to have 72 aircraft delivered by the end of the first calendar quarter of 2027.

Furthermore, Dube mentioned that a larger aircraft order is in the pipeline this year.

The aviation industry was one of the hardest hit by the pandemic, but overall, air travel demand is nearing pre-COVID levels. India is forecast to see domestic air passenger traffic rise to 160 million this fiscal and more than double to 350 million by FY30. The international traffic in India is similarly expected to more than double by FY30

The market is very much dominated by Indigo Airlines, which has a share of almost 57 percent of the entire air passenger market in India. Air India Group, including Vistara, etc, is the second largest player with more than 25 percent share, and then you have the rest. Go First had a share of less than 7 percent in domestic traffic, and it has now halted ops and filed for bankruptcy. And that could mean some market consolidation, other airlines benefitting in terms of demand and even better pricing in the short term.

Watch accompanying video for more

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

Go First crisis Highlights | ‘If they think Go First plea is malicious…’: IRP’s advice to lessors

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

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Go First crisis highlights: Go First’s lessor SMBC Capital is being heard by India’s bankruptcy appellate tribunal on May 12. The aircraft lessor has told the National Company Law Appellate Tribunal (NCLAT) that the Indian aviation sector is being seen as a risky jurisdiction in light of the fate of Kingfisher and Jet Airways, as it opposed cash-strapped Go First’s insolvency resolution proceedings. SMBC has sought directions to restrain the IRP from taking over the aircraft. Track Go First crisis live updates here

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

Go First CEO Kaushik Khona hails historic NCLT verdict, says ‘lessors can’t take back aircraft’

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

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In a big relief for crisis-hit airline Go First, Indian bankruptcy court on May 10 admitted the airline’s voluntary plea to initiate the insolvency resolution process against the airline. The National Company’s Law Tribunal (NCLT) has also put the company under protection of moratorium and directed the suspended board of directors to assist the IRP to run the company during insolvency proceedings.

Go First CEO Kaushik Khona hailed the landmark judgment and said it was also historic in the sense that it serves the purpose of Insolvency and Bankruptcy Code (IBC) which is to preserve a viable business before it becomes unviable.

“That’s the basic purpose of the Section 10 (under IBC) where we wanted that airline to preserve its assets. It should preserve all its viable opportunities to survive. And one of the major issues, which we have is to get the Pratt and Whitney engines and that is what the arbitral award means. That means we have to pursue – the IRP is directed to pursue that also,” he exclusively told CNBC-TV18.

Go First’s Khona added that the moratorium order of NCLT will prevent lessors from taking back aircraft as the tribunal has directed for IRP to follow on Pratt and Whitney arbitration proceedings as well.

When asked what happens to the request for deregistration pending before the Directorate General of Civil Aviation (DGCA), Khona said the lessors in light of the moratorium will no longer be able to proceed, and hence, there is protection granted to the airline, including to that of the existing fleet of 27 aircraft.

Besides, NCLT also ordered to keep the company as a going concern and ensure that no employee are retrenched.

The NCLT order implies that the tribunal is ensuring that the airline continues as a ‘going concern’ and as a part of that, there is an anticipation that the IRP will look to bring the 27 plane fleet into action, which will necessarily require a suspension of the current cap there is as far as registration and booking is concerned.

Also Read: Civil Aviation Ministry cautions against air ticket price caps amid airlines’ losses

On May 4, the NCLT reserved its order after hearing the Wadia group-owned carrier and its aircraft lessors who have opposed the petition seeking interim protection.

Go First, which has been flying for more than 17 years, stopped flights from May 3 amid financial crunch caused by grounding of more than half of its fleet due to non-availability of Pratt & Whitney engines.

With liabilities worth Rs 11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.

Go First has already suspended the sale of tickets till May 15.

Track Go First verdict LIVE updates here

Also Read: Go First-SpiceJet crisis: Cheap air travel a distant dream? 

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