A travel boom is on the horizon and Gautam Adani wants to be prepared

Billionaire Gautam Adani’s Adani Group is buying a stake in online travel aggregator Cleartrip Pvt Ltd. as domestic travel rebounds in India after pandemic-led movement curbs were eased.

Adani Enterprises Ltd., the group’s flagship, has agreed to acquire a “significant minority stake” in Cleartrip for an undisclosed sum, Adani said in an exchange filing. It expects the transaction to close in November.

Buying into Cleartrip, part of the Walmart Inc.-owned Flipkart Group could boost the port-to-power conglomerate’s plans to roll out a super-app as well its airport management business.

(Image Courtesy - Financial Times)

The rapidly diversifying Adani Group has emerged as the country’s largest airport operator and said the number of passengers is nearing pre-pandemic highs.

The investment will also enhance the partnership between the Adani Group and the Flipkart Group, it added.

Flipkart Online Services Pvt. signed a pact with the Adani conglomerate in April to build one of the largest retail warehouses in India.

“The Cleartrip platform will become an essential part of the broader SuperApp journey we have embarked upon. We have a strongly developing relationship with Flipkart that spans multiple dimensions including data centres, fulfilment centres and now air travel.” Gautam Adani, Chairman, Adani Group

Adani Logistics Ltd. is building a 534,000-square-feet fulfilment centre -- roughly the size of 11 football fields -- in Mumbai and will lease it to Flipkart, as the latter braces to gain market share in India’s e-commerce market.

The recent deal will also help Adani fight rival conglomerates that are building all-in-one e-commerce apps.

India’s Tata Group is getting a huge digital makeover as it is building such a super-app for its swathe of consumer products and services.

Rival Reliance Industries Ltd., controlled by Mukesh Ambani, said in July it will buy a controlling stake in the local search engine, Just Dial Ltd., which offers local information and buying options for everything from catering to dance classes and electronics repair shops.

(Image Courtesy - Reuters)

Adani, who built his empire around the businesses of coal mining, electricity and ports before venturing into data centres and airports management, has seen his net worth soar 121% to $74.5 billion in 2021, according to Bloomberg’s Billionaires Index.

There just seems to be no stopping the Adani juggernaut. Not even a pandemic. Early this year, despite the Covid-19 pandemic wreaking havoc on the Indian economy, the Ahmedabad-based group splurged nearly INR 15,000 crore to mop up three ports across India’s coastline to strengthen its role as India’s largest private port operator, accounting for over 25% of the cargo movements in the country.

The group also sold a 20% stake in its barely six-year-old renewable energy company, Adani Green Energy, for $2.5 billion to Paris-based Total Energies. Last year, Adani Green had won the world's largest solar energy tender worth $6 billion.

Then, on July 13, less than a year after it forayed into India’s lucrative airport sector, the 32-year-old Adani Group managed a rather rare feat, something that even pioneers in India’s airport sector had not managed so far: The group became India’s largest airport infrastructure company, with one in every four passengers in India passing through an airport they run. The group’s airports also account for one-third of all the air cargo in the country.

(With Inputs from Bloomberg)

Cover Image - GQ India

Change is the only constant and this couldn't be more synonymous with the aviation industry. With the constant advent of technology, aviation is an ever-evolving field and therefore newer advancements never fail to surprise us.

Virtual reality or augmented reality and aviation are two entities that always seem to go hand in hand. Although simulators seem to be the only place where VR has been integrated successfully so far, all that's about to change.

Xtal Headset | vrgineers.com

The iconic "Xtal headset" designed by VRgineers, is a perfect example of a promising concept aimed at digitization of pilot training and increasing the effectiveness and safety of training.

What sets it apart

Xtal works on optical correction software and has a unique patent-protected non-Frensal VR lens design. Its one-of-a-kind asymmetric optic technology combined with advanced proprietary software produces an ultra-high-resolution image with a 180-degree field of view. (The widest available in the market currently)

vrgineers.com

Additionally, it has built-in eye-tracking software for data analytics & integrated hand tracking for cockpit interactions.Furthermore, it is also expected to deliver a sense of situational awareness(SA) like never before.

And quite apparently, it can replicate sophisticated helmet-mounted displays whilst also supporting a distributed aperture system using its panoramic cameras.

The XTAL has been a key part in the development of a Eurofighter Typhoon prototype high fidelity VR Simulator enabling clear symbology and wide FoV visuals which are crucial for Pilot combat training.CHARLES JACKSON?EUROFIGHTER TYPHOON PILOT TRAINING AR/VR LEAD

The Xtal is designed in such a way that it can be easily adopted on any platform, thereby facilitating multi-crew coordination where non-flight crew can now use the same headsets and train with the flight crew.Not surprisingly, the company has chosen AH-64 Apache and UH-60 Blackhawk as platforms for future implementation of the concept design.

With Xtal mixed reality, pilots can now operate in the flight deck and see their hands at the same time | aero-space.eu

The next-gen concept has managed to grab the attention of the USAF, which has currently selected the headset as a part of its evaluation for future implementation in training on its F-35 - fifth-generation fighter craft.

It is an honor to participate and contribute on the most advanced fighter jet platform in the worldMarek Pol?ák, CEO and co-founder of the company.

He further stated that the company is already a Tier 2 supplier to Lockheed Martin with plans of moving up to Tier 1 soon.

Touted to be costlier than high-level gaming software, Xtal is still estimated to be a priceless tool in all engineering disciplines, particularly aviation.

COVER: vrgineers.com

IndiGo on Monday, November 1 started six new flights connecting Kanpur with Mumbai, Bengaluru, and Hyderabad, a statement said. The airline said these flights will operate on all days except Sundays. Aviation Minister Jyotiraditya Scindia virtually flagged off the flights on Monday.

Kanpur is the 71st domestic city to be connected by IndiGo flights, the statement noted.

https://twitter.com/MoCA_GoI/status/1455114190906015746

The Ministry of Civil Aviation (MoCA) said the aerial connectivity on Kanpur-Bengaluru routes will provide direct connectivity and facilitate the seamless movement of passengers. With these new flights between Kanpur to Bangalore, Hyderabad & Mumbai, the tourists & travellers will get multiple options for air connectivity.

Scindia said his new route will not only enhance connectivity to/from Kanpur but will also promote trade, commerce and tourism between these cities. He said that Kanpur is not only an important industrial hub of the country but also has historic and spiritual importance.

"These new routes will connect Kanpur, a major financial and industrial centre in the north, to the rest of the country through key hubs in western and southern India while augmenting trade and commerce within these regions."Sanjay Kumar, Chief Strategy and Revenue Officer, IndiGo

With the connectivity of Kanpur with three major cities, the aircraft movement from the destination will jump from 20 to 41 per week, giving impetus to the industrial and business activities and also generating employment, a ministry statement added.

As far as the infrastructure for aviation is concerned, the new terminal for the Kanpur city will be ready soon, within the stipulated time, at the cost of INR 106 crore.

Recently, Indigo started six domestic flights connecting Indore to Allahabad, Jodhpur, and Surat. The flights, virtually flagged off by Civil Aviation Minister Jyotiraditya Scindia, will operate daily, according to a statement.

As India's aviation industry recovers, the country is seeing an influx of companies that provide in-flight connectivity, with IndJets India becoming the latest to receive permission from the Department of Telecommunications.

“IndJets India Pvt Limited (IndJets) is a strategic partner of Bharat Sanchar Nigam Limited (BSNL) and Inmarsat - global mobile satellite provider - has received approval certificate for in-flight Connectivity (IFMC) from the Ministry of Communications, Department of Telecommunications,” the company said in a statement.

(Image Courtesy - Entrackr)

Indjet joins companies like Vodafone, Airtel, Jio and Nelco that have already received approvals to offer internet services on-board. Vistara offers this facility on its Boeing 787 Dreamliners. Tatas are widely expected to offer this on Air India post acquisition.

Among the Indian carriers, full-service carriers like Vistara and Air India (now owned by Tatas) would like to offer in-flight connectivity to their flying passengers.

Low-cost carriers could also look at providing such service, as this could bring a new head under ancillary revenues.

“The availability of Global Xpress (GX) Aviation services (provides faster internet on flights) in India promises to be a game-changer as it brings new connectivity opportunities to Indian carriers that were never available before. Inmarsat's recently released in-flight portal OneFi will enable these seamless & value-added services. Not only passengers will be delighted by seamless connectivity, but also the airlines which will be able to realise new ancillary revenue opportunities and achieve operational excellence."Anoop Sehan, CEO, IndJets

GX Aviation services, operating in the Ka-band, is the first and only high-speed broadband network designed for customers to seamlessly span the world. The service delivers the high bandwidth, reliability and security that commercial and government-grade mobility customer’s demand, the statement by the company read.

Real-time, seamless internet access would allow airlines to refine their onboard services as passengers enjoy their email and browsing, the company said.

"A faster internet availability on-board also provides airlines the option of bringing in efficiencies in-flight operation, thus, saving a lot of fuel, which constitutes a large part of airline’s operational cost,” said an airline executive with a foreign airline.

"BSNL recently announced receiving the necessary licenses to deliver Inmarsat’s world-leadingGlobal Xpress (GX) mobile broadband services in India. We are now very pleased that our Aviation partner IndJets has been granted IFMC license by DOT. Our regional partnership with IndJets will be vital to address the ever-growing demand for reliable, consistent inflight connectivity service in India, and using GX IndJets will speed up the digitalisation and related monetisation opportunity for airlines."David Coiley, Regional VP (Asia Pacific), Inmarsat

Cover Image - Reader's Digest

On Monday, November 1, oil marketing companies (OMCs) increased the price of aviation turbine fuel (ATF) by about 13.8% over the previous month, and by 95.8% over the previous year, as global crude oil prices firmed up on improved demand.

In India, jet fuel accounts for 30-40% of the cost of operating an airline, and an increase in prices will eat into profit margins for airlines that have reported massive losses in recent quarters due to the covid-19 pandemic.

According to data from Indian Oil Corp. Ltd, ATF prices in New Delhi are currently at INR 82,638.79 per kl (kiloliter), up from INR 72,582.16 per kl a month ago (IOCL). Prices are INR 81,050.70 per kl in Mumbai, INR 85,032.62 in Chennai, and INR 86,734.26 in Kolkata.

Every two weeks, jet fuel prices are updated. Brent crude prices have increased by more than 100% in the last year.

ATF prices were lower until February 2021 than the previous year, but they have been rising since then, according to rating agency ICRA. On a year-over-year (y-o-y) basis, ATF prices increased by 3.0%, 59.8%, 103.4 %, 86.3 %, 59.7%, and 55.3 % in March, April, May, June, July, and August, respectively.

In September, prices rose 54.6% year-on-year, attributed to the low base of September 2020 when rates had declined 32.2%, a result of the pandemic.

“With daily traffic at about 250,000 levels, crude at (over) $75 per barrel, no major supply cuts by any airline and a long road to recovery for the international segment, profits remain distant. However, higher-flying capacity and seasonally strong Q3 (October-December 2021 period) should help limit losses."ICICI Securities in a recent report

With the rising ATF prices, brokerages expect Indian airlines to remain largely loss-making this quarter.

Since the resumption of domestic flight services in May 2020, the government has removed a capacity cap imposed on airlines. Domestic routes can now be operated at full capacity, especially at a time when ticket bookings are at an all-time high.

(Image Courtesy - The Hindu)

A senior airline official said rising jet fuel prices will add pressure to the bottom line as carriers operate more flights. "Airlines will have no option but to pass it down to the customers," the official said, requesting anonymity.

Others, on the other hand, claimed that due to competition, it would be difficult for airlines to pass on increases in operating costs to passengers, and predicted airline losses.

The sharp increase in the price of air turbine fuel (ATF) is expected to have an impact on the aviation and travel industry's recovery, as it will cause fares to rise, but not to the point where airlines will be unable to recover the cost of their operations.

(With Inputs from Mint)

The Pune airport, which had been closed to civilian traffic for the past 14 days, has reopened for business on October 30.

Officials claim that "In a world record time of 14 days, the Military Engineering Services (MES) resurfaced a segment of the runway at the Pune Airport. Previously, comparable work would take 28-35 days. Today, flight operations were resumed."

https://twitter.com/aaipunairport/status/1454085751126126592

Previously, from October 16 to October 29, the Pune airport was closed for fourteen days to undergo runway resurfacing work.

The Indian Air Force (IAF), which oversees runway operations, stated that runway resurfacing had become necessary due to the rapidly deteriorating condition of the runway and associated working surfaces at the Air Force Station in Pune.

To cause the least amount of disruption to civil aviation, the runway was partially closed for 12 hours each night from October 26, 2020, to October 25, 2021, for the works.

https://twitter.com/aaipunairport/status/1454333100696113152

As per the IAF, a 14-day complete closure was planned from April 26 till May 9, 2021, to undertake the resurfacing of the central bitumen portion of the runway.

However, due to the emergent requirement of transport of COVID-19 vaccines, The Ministry of Defence had been directed to defer the complete closure of the runway.

"The exact dates of closure from October 16 to October 29 2021 could be promulgated only after the requisite approvals were obtained from the Ministry of Health and Family Welfare and The Ministry of Defence. As per the present plan, flight operations would resume from October 30 2021, before the Diwali festival. The airport's closure was scheduled for the third and fourth weeks of October."Statement by Pune Airport

The operations have resumed from 8 AM to 8 PM. The airport will continue to remain shut for night operation till November 30. Right now, only domestic flights are operational from the Pune airport.

Indian Air Force (IAF), which manages the runway operations, had said earlier this month that due to the rapidly deteriorating condition of the runway and associated operating surfaces at the Air Force Station, Pune, the runway resurfacing had become urgent. It had closed the airport from October 16.