19 new aircraft stands installed at Delhi Airport T1

Radhika Bansal

16 Dec 2021

Nineteen new aircraft stands have become operational at Terminal 1 of the Indira Gandhi International (IGI) airport after the approval of aviation regulator DGCA, the Delhi International Airport Limited (DIAL) said on Wednesday, December 15.

These new stands would be able to handle Code C aircraft, a statement issued by the GMR group-led DIAL noted. Code C aircraft such as A320 and B737 has a wingspan measuring between 24 metres and 36 metres.

While T-1 had 55 parking stands for aircraft before the expansion work under Phase3A of the master plan, the new smart apron will revamp some of the existing structures to make space for 82 slots, including 22 ‘contact’ stands and eight Multiple Apron Ramp Systems (MARS), which can accommodate much larger aircraft.

The apron or the tarmac area of Terminal 1 is being expanded by the DIAL currently. Under the first phase of the expansion, the aforementioned 19 stands have been constructed, the DIAL said. There will be two more phases of the expansion. Before the commencement of the expansion works, Terminal 1 had 55 aircraft stands, the DIAL said.

With the 19 stands becoming operational, the total number of aircraft stands has now increased to 74 at Terminal 1. The new set of aircraft stands will assist in reducing the traffic congestion at the airport, the DIAL said.

The airport operator estimates that with the new smart apron, there will be an estimated reduction in 70kg of CO2 emissions per flight and once the 22 ‘contact’ stands are made operational, a further reduction of 255kg of CO2 emissions per aircraft during the turnaround process for domestic airlines.

“The completion of the first phase of works for the expansion of T1’s new smart apron is another step towards enhancing the infrastructure and passenger experience at the Delhi airport to make it future-ready. The new smart apron will not only facilitate improved passenger experience by improving operational efficiency and safety on the airside but also contribute towards significantly reducing harmful CO2 emissions, underlining DIAL’s commitment to environment-friendly outcomes and initiatives.”I Prabhakara Rao, Deputy Managing Director, GMR Group

"The apron is being built in three phases. In the first phase, 19 out of 82 Code C stands have been constructed. The 19 new stands have become operational after statutory approval from the Directorate General of Civil Aviation (DGCA)," it added.

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Air India transaction is a 'win-win' scenario - Jyotiraditya Scindia

Radhika Bansal

15 Dec 2021

Emphasising that the Air India transaction is a ”win-win situation” across the board, Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday, December 14 said taxpayers’ money will now be more justifiably used for many more socially productive purposes rather than filling the deep losses of the airline.

He also said the disinvestment will provide an opportunity for the airline to rise like a phoenix again.

In October, Talace Pvt Ltd, part of the Tata group, emerged as the winning bidder for Air India with a bid worth INR 18,000 crore. It will pay INR 2,700 crore cash and take over INR 15,300 crore of the airline’s debt.

"Shareholders agreement was signed in November. Today, we are in the process of closing all the conditions precedent and I am very confident at the turn of the New Year, you will have the transfer of Air India to its new owner…,” he said.

Scindia was speaking at a session on ’Building India into a Global Civil Aviation Powerhouse’ of Partnership Summit 2021, organised by industry body CII in association with the Department for Promotion of Industry and Internal Trade (DPIIT).

From a company perspective, Scindia said, here is the opportunity for Air India to rise like a phoenix again.

"From a customer-centric point of view, you have got a new company that has come in, which already has a full-service airline and a budget airline and taking over Air India plus Air India Express. The four companies together have the capability of presenting themselves as a very unique proposition… A win-win situation across the board.Before that, an equity infusion of INR 36,000 crore by the government and a current debt portfolio of as we speak of about INR 62,000 crore. All in all, you are talking about an INR 2 lakh crore bill for the singular purpose of being able to run an airline.I believe that if you look at it from every stakeholders’ point of view, this has been a win-win transaction… taxpayers’ money, which I think is more justifiably used for many more socially productive purposes rather than filling the deep losses of a state-run airline."Jyotiraditya Scindia, Union Minister for Civil Aviation

Noting that the government has gone through a very clear iterative process for the disinvestment, Scindia said Air India was pretty much driven into the ground due to many unfounded decisions that were taken earlier and added that he does not want to go back to history.

The navratna company is laden with close to INR 52,000 crore debt infusion, another INR 54,000 crore of government guarantees that makes the total liabilities of INR 1,04,000 crore, he pointed out.

The minister also said that a supportive drone policy is in place that is based on trust.

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Centre proposes to build helipad along major highways for medical emergencies

Radhika Bansal

15 Dec 2021

The government is looking to develop helipads along major highways so that accident victims can be evacuated using helicopters from the spot.

As part of efforts to boost the country's helicopter segment, Civil Aviation Minister Jyotiraditya Scindia on Tuesday, December 14 said steps are being taken to have Helicopter Emergency Medical Services (HEMS).

"I am working with the Ministry of Road Transport to try and see whether we can develop helipads along the major highways, especially Mumbai, Delhi and so forth so that if there is an accident, we can evacuate people with helicopters.Helicopter is a neglected area and it’s shocking to me… We have put three helicopter corridors too… We intend to develop many more across the country. Also working with road ministry to develop helipads on highways too. Multi prong approach to developing the helicopter sector… and we are talking to everyone."Jyotiraditya Scindia, Union Minister for Civil Aviation

In India, there are around 250 helicopters, and 181 of them are operated by non-scheduled operators, while there is less than one helipad per district, Mr Scindia said while speaking at a summit organised by industry body CII.

Recently, the ministry came out with a new helicopter policy, which has made the processes simple. Besides, helicopter corridors are being developed and three such corridors - Mumbai to Pune, Begumpet to Shamsabad, and Ahmedabad to Gandhinagar - are in place.

Under the regional air connectivity scheme, there are plans to develop 36 heliports, and 6 of them are functional.

Emphasising that the underpinnings are in place to launch the helicopter industry in India, Mr Scindia said that from a fiscal standpoint in terms of customs duty and imports of helicopters, he has sensitised the finance minister and "we are working on resolving those issues as well".

Mr Scindia also said that eight states and Union Territories reducing Value Added Tax (VAT) on aviation turbine fuel (ATF) from prohibitive rates of 28-30% to 1-2% is a "huge achievement" for the aviation sector in terms of making it more economically viable.

ATF or jet fuel costs account for a major chunk of an airline's operational expenses. 

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Resumption of international flights will be contingent on Omicron's performance

Radhika Bansal

15 Dec 2021

The normalisation of international flight services will depend on the Omicron scenario and authorities concerned will watch the situation as it unfolds, Union Civil Aviation Minister Jyotiraditya Scindia said on Tuesday, December 14.

On November 26, aviation regulator DGCA decided to restart scheduled commercial international flights to and from India from December 15. However, the decision was put on hold in less than a week in the wake of the emergence of Omicron, the new COVID variant. Last week, the watchdog said the flights will remain suspended till January 31.

Scheduled commercial international passenger flights remain suspended since March 23, 2020, due to the coronavirus pandemic. Currently, the flights are being operated under bilateral air bubble arrangements with various countries in a restricted manner.

Speaking at a summit organised by industry body CII on Tuesday, December 14 Scindia said normalisation of international flights would depend on the Omicron situation.

"Keeping in mind the health, we cannot dissociate ourselves from COVID. We are working closely with the health ministry. When we tide over Omicron, we can look at going back to normalcy even vis-a-vis international travel but I cannot give you the date today.It is not incumbent on me, there is a host of other factors, other ministries that I have to coordinate with and watch the situation as it unfolds over the next couple of weeks.Today, we are running 3.7 to 3.9 lakh passengers per day and on a seat load factor basis of 75-81%, which is a very healthy seat load factor. Keeping that in mind, I was looking at opening up international travel but as you all are aware, just on the anvil of that the world got hit by Omicron.It depends on various countries' risk appetite and you cannot disagree with what each individual country determines its risk appetite is... that decision is best left to individual countries rather than for us to impose a worldwide sort of rules..."Jyotiraditya Scindia, Union Minister for Civil Aviation

Talking about the domestic air traffic, Scindia said today it is ranging between 3.7 to 3.9 lakh passengers per day. Pre-COVID, the highest was close to 4.2 lakh passengers per day.

The domestic capacity was increased in a "very gradual and monitored process" and on October 18, the government allowed 100% capacity for domestic airlines.

Replying to a query, the minister said every country has different rules about international travel right now and understandably so.

Even though the international passenger services have been suspended since March 23, 2020, but special international flights have been operating under the Vande Bharat Mission since May 2020 and under bilateral “air bubble” arrangements with selected countries since July 2020.

Till now, India has formed air bubble pacts with around 32 countries including the US, the UK, the UAE, Kenya, Bhutan and France. Under an air bubble pact between two countries, special international flights can be operated by their airlines between their territories.

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IndiGo and Kotak Mahindra Bank team up to launch Ka-ching credit card

Radhika Bansal

15 Dec 2021

IndiGo airlines, in partnership with Kotak Mahindra Bank, on Tuesday, December 15 launched a co-branded credit card that allows customers to gain points that can be used to purchase tickets on its flights.

The credit card was launched by IndiGo chief commercial officer William Boulter and Kotak Mahindra Bank president for consumer assets Ambuj Chandna at the Delhi airport.

The Kotak IndiGo 'Ka-ching' credit card comes in two variants -- 6E Rewards and 6E Rewards XL, the airline said in a statement. After the launch, Boulter said Kotak Mahindra Bank's customers will be delighted as travellers with this Ka-ching credit card.

In the statement, the airline said that as a part of welcome benefits, customers of the credit card will enjoy a complimentary air ticket worth up to INR 3,000. The co-branded credit card will enable customers to accrue accelerated '6E Rewards' (points) on all spending that can be redeemed against the purchase of airline tickets anytime with no blackout dates, it mentioned.

Further, customers will have access to other special benefits on IndiGo, including discounted convenience fee, priority check-in, choice of seat and a complimentary meal, besides earning additional rewards on dining, shopping, transport, medical bill, utilities, fuel and other major categories, it noted.

“Unsecured credit is the centre of the plate business for us and the good thing today is the unsecured part of our balance sheet is relatively lighter, which gives us a huge headroom to grow as we try to build a balanced book for ourselves. So, it is fair to say, right now, we are extremely bullish on the unsecured credit space and the credit card segment. We are doing a number of things to strengthen our market position in both these businesses.With travel taking off in a big way, we have partnered with IndiGo to help our customers go places with Ka-ching...The Kotak-IndiGo Credit Card is a valuable addition to our growing portfolio of cards and will be the preferred card in our customers' wallets.When the pandemic began, we were dealing with a lot of unknowns, hence we were conservative on the unsecured credit segment as we wanted to see this whole covid thing play out. We are happy with the way the country has bounced back reasonably quick and fast."Ambuj Chandna, President, Consumer Assets, Kotak Mahindra Bank

There are 400 million people in India who are credit active yet there are 66 million credit cards currently. So, there is huge headroom to grow as far as the credit card space segment is concerned.

"As the economy is looking up, travel for business and leisure has come back. It is returning to its levels seen before the pandemic. Domestic travel is roughly at 98% of what it was pre-pandemic and the airline is now expanding the number of destinations it is serving across India.We intend to continue the partnership with HDFC Bank. Mastercard is on hold at the moment but we are talking with other network partners and we are very confident that we can continue to grow the number of cards offered by both our banking partners.This is a perfect partnership as KMBL’s huge base of customers will be able to avail benefits including IndiGo flight tickets and other services with 6E rewards accumulated on flight bookings, dining, entertainment and other spends. We strive to offer the best service to our customers every single day, as their satisfaction is at the heart of what we do. We have immense conviction in our partner as both brands believe in consistently enhancing engagement to deliver an outstanding customer experience.”Willy Boulter, Chief Commercial Officer, IndiGo

IndiGo started the 6E reward programme two years ago and already has the largest credit card issuer, HDFC Bank, as its partner.

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Boeing receives 109 gross orders for 737 MAX in 2021

Radhika Bansal

15 Dec 2021

Boeing Co said on Tuesday, December 14 that it handed over 34 airplanes to carriers in November, while adding 109 jets to its 737 MAX order tally.

The American airplane manufacturer’s gross orders jumped from 10 in October to 109 in November, helped by the Dubai Air Show by Akasa Air placing an order for 72 B737 Max planes.

The delivery tally - closely scrutinized by investors as deliveries generate much-needed cash during the coronavirus crisis - compares with 27 planes in October and seven in the year-ago (2020) period when Boeing was in the throes of the 737 MAX safety crisis.

Again in November, Boeing failed to deliver its advanced carbon-composite 787 Dreamliner, which remains mired in inspections and retrofits likely to keep the jets sidelined until April 2022.

The delay in the airplane’s delivery has taken a toll on some carriers’ schedules. American Airlines has had to cut international flights in the summer of 2022, citing 787 delays. As many as 13 Dreamliners were slated to be in American’s fleet by this winter, and the carrier has scaled back its long-haul summer schedule.

India’s Vistara has also had to delay the launch of its US flights multiple times over the past few months as it has only received two of the 787s from a total of six aircraft it had ordered.

Of the 34 aircraft delivered last month, 28 were 737 MAXplanes - 10 of which were for European low-cost carrier Ryanair. Boeing also turned over one P-8 maritime patrol aircraft to Norway.

During the pandemic, many airlines have been forced to idle unused passenger jets, driving up demand for cargo space on dedicated freighters at a time when e-commerce has been a lifeline for many.

This year through November, Boeing has delivered 302 aircraft, more than twice the 118 aircraft it delivered in the first 11 months of 2020.

Boeing had 91 orders for aircraft in November, after cancellations and instances where a buyer converted an order for one type of aircraft to another. It had 109 gross orders, all of which were for its 737 MAX jetliner, which returned to service in late 2020 after a near two-year safety ban.

That includes an order for 72 MAX jets from India’s Akasa Air, a deal valued at nearly $9 billion at list prices that could help the U.S. planemaker regain lost ground in one of the world’s most promising markets.

It also included an order for 30 737 MAX jets for Miami-based 777 Partners, which owns Canadian low-cost carrier Flair Airlines, and a previously undisclosed order for seven 737 MAXs for Southwest Airlines.

At the same time, buyers cancelled orders for 18 737 MAX jets. Gross orders for the year increased from 720 to 829, or from 373 to 457 after cancellations, conversions and stricter accounting standards were applied, Boeing said.

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