2 SpiceJet aircraft deregistered by the DGCA upon the lessors' request

Directorate General of Civil Aviation (DGCA) on Thursday, March 9 deregistered two Boeing 737s leased to SpiceJet per the terms of Irrevocable De-registration and Export Request Authorizations (IDERA).

A senior official from the regulator confirmed and said, "Under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA) it has happened." According to an investigation, the aircraft's registration was revoked at the request of two lessors with offices in Dublin: Wilmington Trust SP Services and Aircastle (Ireland).

According to a SpiceJet representative, the deregistration of the aircraft "would not impact" the carrier's operations. "This won't impact our ops. One aircraft was grounded for a long period & was to be returned. The other one was returned due to engine issues. Both aircraft are being returned consensually," the representative said.

2 SpiceJet aircraft were deregistered by the DGCA upon the lessors' request

In the event of missed lease rental payments, an aircraft lessor may unilaterally invoke IDERA to deregister and seize the aircraft from the lessee (in this case, SpiceJet). The DGCA now has five working days to deregister the jet by the guidelines.

IDERAs have been used against the carrier previously, thus this is not the first time. Due to claimed payment failures by the airline, two foreign-based lessors, Alterna Aircraft BV and AWAS, a division of aircraft leasing behemoth Dubai Aerospace Enterprise (DAE), applied to India's aviation authority to deregister one SpiceJet aircraft each. Three of these wore registrations VT-SYW, VT-SYX, and VT-SYY and were ex-Jet Airways aircraft acquired by SpiceJet after the former ceased operations in 2019.

The airline then said this was part of a plan to send back old planes as it gets new ones.

The low-cost carrier had 2017 ordered 155 Boeing 737 MAX with an option for 50 more. It had 13 B737 MAX when the type was grounded globally in March 2019. While the aircraft resumed flying in India and most other countries by late 2021, Boeing has not delivered even a single new MAX to SpiceJet in the last four years. The airline takes aircraft on lease to meet its requirement.

ALSO READ - SpiceJet to de-merge cargo arm, convert Carlyle’s debt to 7.5% equity & raise funds via QIP

Last month, the no-frills carrier said it has restructured over USD 100 million outstanding dues to aircraft leasing firm Carlyle Aviation Partners, into equity shares and compulsorily convertible debentures (CCDs). The Board of Directors of SpiceJet Ltd on February 27 approved issuing fresh equity shares of USD 29.5 million (INR 244.28 crore) to Carlyle Aviation Partners at INR 48 per share or the SEBI-determined price, whichever is higher, the company had said.

ALSO READ - SpiceJet Q3 net profit jumps 160%; shares fly high

Following this transaction, Carlyle Aviation Partners would have over 7.5% equity stake in SpiceJet Ltd. Moreover, the transaction would retire over USD 100 million debt of SpiceJet, thereby strengthening its balance sheet for future expansion.

Indian carrier Go First is planning to take US aerospace firm Raytheon Technologies to court, The Economic Report (ET) reported. The firm is the maker of Pratt & Whitney engines. It has come to light that PW-1100G geared turbofan (GTF) engines are facing reliability issues. This has resulted in half of Go First's fleet being grounded.

Citing sources, the report said that while Go First asked for compensation for the malfunctioning engines that resulted in business losses, PW refused to pay the money, which resulted in a violation of the contractual agreement.

Reportedly, Go First had signed a billion-dollar deal to purchase PW engines for its A320neo aircraft in 2019. The deal came with a comprehensive service agreement, which talked about compensation from the manufacturer for any maintenance issues.

Go First plans its next step against Pratt & Whitney amidst aircraft grounding

Go First may be forced to ground 8-12 more aircraft in the next 6-12 months if Pratt & Whitney does not fulfill its contractual obligations and provide the airline with spare engines.

Speaking about the issues with PW's engines, a person with Go First said, "Over the last two years, all the engines had to be removed from the wing before an average of 7,000 hours, which is way lower than the projected life of 12,000 hours. Problems have repeatedly surfaced, which has resulted in the unscheduled removal of engines, leading to severe disruptions in operation and business."

ALSO READ - How Bad is IndiGo’s and GoFirst’s A320 Engine Problem?

IndiGo is the only other Indian airline that operates GTF engines, and it also had to ground 35 of its aircraft, but Indigo is getting compensation for the same. IndiGo CFO Gaurav Negi said, "We are working with engine makers to get some relief. Some of the compensation has already come in this quarter. We continue to keep working with them to get adequately compensated."

The months of April and June are usually busy for airlines. Industry sources said that Go First will have to operate at 40% capacity this year due to engine issues, the ET report added. This may result in a substantial revenue loss.

ALSO READ - Go First grounds over a fifth of its fleet due to delayed deliveries of engines by Pratt & Whitney

Other experts from the industry have said that Go First's engine issues have to do with the carrier's financial limitations. Go First deferred maintenance work during Covid which may have been a cause for the problems in the engines, the report said.

Industry experts also blamed India's humid and dusty environment for the faster degradation of the combustion chamber of jet engines.

Last month, Raytheon Technologies said that the availability of complex metal components used to produce aerospace turbofans will likely remain constrained through most of 2023.

More than 50 aircraft of Go First and IndiGo had been grounded due to a lack of engines and spare parts in November. P&W provides engines to about 200 Airbus A320neo aircraft flown by Go First and IndiGo. Its engines also power turboprop aircraft such as the ATR-72 and Bombardier Q-400 flown by Alliance Air, IndiGo, and SpiceJet.

Both airlines had to ground their aircraft due to delays in engine deliveries on account of significant supply chain disruptions, according to reports in November. IndiGo has gone down the leasing route to meet demand, while Go First is struggling to meet capacity and maintain its schedule.

ALSO READ - Pratt & Whitney top executives visit India to address engine supply chain issues

In November, senior P&W executives including president Shane Eddy and Rick Deurloo, president of the company’s commercial engines division, met top officials of Go First and IndiGo to discuss ways to resolve engine supply issues in India. The executives said P&W is working aggressively to address the supply chain disruption and would be in much better shape by the end of 2022.

(With Inputs from The Economic Times and MoneyControl)

Expressing concern over the rising number of instances involving unruly behaviours by passengers, Air India CEO Campbell Wilson has called for concerted industry efforts to contain the problem.

Recently, Wilson informed that incidents surrounding unruly behaviour by inebriated passengers are quite frequent, adding that the airline has now got strict and is reporting all such cases of unruly behaviours.

Wilson had said that the airline has learnt lessons and it could have reacted better to the issues surrounding the 'peeing' incident which occurred in November last year.

The Air India CEO said that the airline has realised the importance of reporting all such incidents. Stating that Air India is now investing more in technology, the CEO had told the media that there are many instances where the airline's crew is at the receiving end when a drunk passenger misbehaves.

Air India CEO urges coordinated action to reduce disruptive passenger behaviour

The airline has since set up new processes to monitor as well as deal with the problem of unruly passenger behaviour. It recently selected the UK-based Ideagen’s enterprise cloud software application, Coruson, to further enhance end-to-end safety management, including real-time intelligence, reporting and status of inflight incidents. 

The safety data software application, which will be online with effect from May 1, will ensure automated processes relay critical information to key personnel and authorities without delay, leading to timely action. The airline is separately engaged in procuring iPads for pilots and crew members and when introduced, Coruson will be available on these devices as well.

Talking to Business Today, Wilson said that in the last six weeks alone, Air India had witnessed four incidents where people have either assaulted or threatened to physically assault its crew, and the airline is taking a zero-tolerance line on that.

He said that a rise in such cases globally had led even the industry body, International Air Transport Association (IATA), to take a serious view of the situation and call for industry-wide action to stem it.

ALSO READ - Air India passenger incident: What? How? When?

In the instance of the 'peeing' incident onboard AI-102 operating between New York and Delhi on November 26, 2022, the concerned cabin crew and one pilot have been issued show-cause notices and were de-rostered pending investigation.

ALSO READ - DGCA rejects Air India pilot’s appeal to revoke suspension in urination case

In 2022, 4,242 such incidents were reported by member airlines, which was significantly lesser than the 5,672 incidents reported in 2021, according to data shared by IATA. However, there has been a sharp spike in these occurrences since the onset of the Covid-19 pandemic in 2020, when only 2,688 incidents were reported globally. This increase was initially driven largely by non-compliance with face mask requirements.

While addressing a virtual conference last week, the Air India CEO said that the airline has enormous potential and efforts are on to make the group a significant international player.

ALSO READ - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

Wilson said that Tata group-owned Air India's order for a record 470 aircraft from Airbus and Boeing will be worth nearly USD 70 billion. The CEO also said that the process of integration of Vistara with Air India is underway and is now awaiting approval from the regulatory bodies.

(With Inputs from Business Today)

The International Air Transport Association (IATA) released its 2022 Safety Report for commercial aviation, showing the lowest fatal accident rate compared to 2021 and to the five-year average (2018-2022).

The IATA, which represents some 300 airlines comprising 83% of global air traffic, released its 2022 Safety Report for global aviation.

In 2022, there were five fatal accidents involving loss of life to passengers and crew. This came down from seven in 2021 and an improvement on the five-year average (2018-2022) which was also seven. The fatal accident rate improved to 0.16 per million sectors for 2022, from 0.27 per million sectors in 2021, and also was ahead of the five-year fatal accident rate of 0.20, it said.

The accident rate was 1.21 per million sectors, a reduction compared to the rate of 1.26 accidents for 2018-2022, but an increase compared to 1.13 accidents per million sectors in 2021. The fatality risk declined to 0.11 from 0.23 in 2021 and 0.13 for 2018-2022. IATA member airlines experienced one fatal accident in 2022, with 19 fatalities.

The industry's 2022 fatality risk of 0.11 means that on average, a person would need to take a flight every day for 25,214 years to experience a 100% fatal accident. This is an improvement over the five-year fatality rate (average of 22,116 years).

"Accidents are rare in aviation. There were five fatal accidents among 32.2 million flights in 2022. That tells us that flying is among the safest activities in which a person can engage. But even though the risk of flying is exceptionally low, it is not risk-free. Careful analysis of the trends that are emerging even at these very high levels of safety is what will make flying even safer. This year's report, for example, tells us that we need to make some special efforts on turboprop operations in Africa and Latin America. Safety is aviation's highest priority, and our goal is to have every flight take off and land safely regardless of region or aircraft type."

Willie Walsh, Director General, International Air Transport Association (IATA)

The accident count pertains to commercial aviation operations, specifically scheduled/charter passenger or cargo service. Executive jet operations, training, maintenance/ test flights are all excluded.

Little over 32 million flights were operated in 2022, which is a 25% rise compared to 2021 but still 31% lower compared to 2019. The report said that five accidents in 2022 resulted in fatalities, compared to seven in 2021.

Despite the reduction in the number of fatal accidents, the number of fatalities rose from 121 in 2021 to 158 in 2022. The majority of fatalities in 2022 occurred in a single aircraft accident in China that claimed the lives of 132 persons. The airline involved was not an IATA member but is on the IATA Operational Safety Audit (IOSA) registry. The next largest loss of life occurred in an accident to an IATA member in Tanzania that resulted in 19 fatalities.

IATA said that the majority of fatalities occurred in a single aircraft accident in China Eastern flight 5735, which crashed in March 2022 that killed 132 persons and the next largest loss of life occurred in the Precision Air Accident in Tanzania which resulted in 19 fatalities.

ALSO READ - Global flight accident rate dropped for the first time in 15 years

Emirates, one of the world's leading airlines, has recently stated that the Indian aviation market is large enough to accommodate all players profitably. This comes as good news for airlines operating in India, which has been facing a tough time due to the pandemic.

The Indian aviation market has been growing steadily over the past few years, with the number of domestic and international passengers increasing significantly. Despite the pandemic, the market is expected to rebound quickly, as air travel is expected to pick up once the situation improves.

Emirates, which operates over 70 weekly flights to 11 destinations in India, has been bullish on the Indian aviation market for several years now. The airline sees India as a key market, and has been expanding its operations in the country.

According to Emirates, the Indian aviation market has the potential to grow even further, and there is room for more players to enter the market.

A senior Emirates executive said the expansion of Air India might push airports to improve their services, which will be a positive development for all other airlines, Indian customers as well as the aviation and travel industries as a whole.

"Air India flying to new international routes might also have a positive (effect) on Emirates. When a new route is operated by an airline, then that could result in increased traffic demand and the particular airline might not be able to cater to the demand. As a result, the potential customers will look at other carriers and that can have a positive impact."

Mohammed Sarhan, Vice President - India & Nepal of Emirates.

According to a report by the International Air Transport Association (IATA), India is expected to become the third largest aviation market in the world by 2025, after the US and China.

Emirates optimism about the Indian aviation market is backed by data, as several reports have suggested that the market is set to grow significantly in the coming years.

The report also stated that India is expected to add around 400 million new passengers by 2030, which is more than any other country in the world. This presents a huge opportunity for airlines operating in India, as they can tap into this growing demand and expand their operations.

The Indian aviation market presents a huge opportunity for airlines, and Emirates' optimism is a testament to this. As the market continues to grow, it is likely that more airlines will enter the market, and competition will intensify. However, as long as airlines are able to provide high-quality services at competitive prices, they should be able to succeed in the Indian aviation market.

Air India’s management has proposed a single simplified salary structure and a common master seniority list for 3,100 pilots across Tata airlines, as the group begins the process of the integration of four carriers.

These were among the proposals put forth at separate town hall meetings with pilots of Air India and Vistara on Thursday. The meetings were addressed by Air India CEO Campbell Wilson, Vistara CEO Vinod Kannan, and senior pilots and HR heads of the two airlines. They were joined by an executive from consulting firm BCG, which is advising the Tata group airlines on integration.

As a part of the integration, Vistara would be merged into Air India to create a single full-service airline. AIX Connect (AirAsia India) would get merged with Air India Express and serve as no-frill airline in the domestic and international markets.

Currently, the Tata group airlines have a combined fleet of 218 aircraft. Another 470 aircraft are on order and would be delivered over the next 7-10 years.

As a part of the integration, Vistara would be merged into Air India to create a single full-service airline.

At Thursday's meetings, pilots were informed that there would be a single-simplified salary structure based on scope of operations. Rapid fleet and network growth would also create significant opportunities across bases.

A single master seniority list would be used for career progression. Pilots were also told that lateral hiring would be minimised and internal promotions would be encouraged. A career path would be created for command opportunities on wide-body aircraft for all the pilots.

The management said the induction of planes and setting up of an in-house training centre would also create opportunities for instructor roles. The training centre is planned to have over 20 full-flight simulators, 150 classrooms, and mock-up training infrastructure with AR/VR facilities.

At present, Air India has the largest pilot strength of 1,500 among group airlines. Vistara has 800 pilots while AIX Connect and Air India Express have around 400 pilots each. Last week, Air India said it would hire 900 pilots in 2023 to support the expansion plan.

At present, Air India has the largest pilot strength of 1,500 among group airlines.

Pilots are yet to get full clarity on the management’s proposals. “What exactly will be the criteria for fixing a single seniority list in all four airlines,” a pilot remarked.

Air India was unable to create a single seniority list of pilots after merging with Indian Airlines in 2007 as pilots from both sides bickered on the issue.

“The management has also said unified policies for staff travel and other benefits will be shared by March-end. These are matters of service regulations and should be discussed with unions before implementation," another senior captain remarked.

With inputs from business standard.