AAI collected INR 3,245 crore from private partners of 6 leased out airports

State-owned AAI has received a total amount of INR 3,245 crore till February this year from the private partners of Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram, and Mangaluru airports, according to the government. These airports were awarded for operations, management, and development under Public Private Partnership (PPP) for a lease period of 50 years. The airports were won by the Adani group through a competitive bidding process."Private partners of Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram, and Mangaluru airports have paid approximately INR 896 crore to AAI as Per Passenger Fee (PPF) till February 2023. 

AAI has also received an amount of approximately INR 2,349 crore from the private partners of these six airports in the form of upfront fee towards the capital expenditure incurred by AAI at these airports," Union Minister V K Singh told Rajya Sabha on Monday.AAI collected INR 3,245 crore from private partners of 6 leased out airportsAirports at Ahmedabad, Lucknow, and Mangaluru were leased out in 2020, while the remaining three were leased out in 2021. Tariffs have been revised at Mangaluru and Ahmedabad airports. 

ALSO, READ - Centre plans a 30% hike in charges for small airports

Adani-run Lucknow Airport also seeks steep hikeIn a written reply, the Minister of State for Civil Aviation also said the fees at Lucknow, Thiruvananthapuram, Jaipur, and Guwahati airports have not changed since taking over the airports by the new operator. Singh noted that till March 16 this year, the Airports Authority of India (AAI) has received an annual fee of more than INR 13,000 crore as revenue share from the private partners of Mumbai airport. In a separate written reply, Singh said AAI has received revenues of around INR 5,500 crore from the private partner of Delhi airport and INR 5,174 crore from Mumbai airport during the 2017-18 to 2021-22 period. To a query, the minister said that, as of date, there is no plan to lease Kolkata airport under PPP. According to the minister, the Government of India (GoI) also receives 4% of the gross revenue as concession fees from the operators of Bangalore and Hyderabad airports. "So far, GoI has received an amount of approximately INR 620 crore as concession fee from these airport operators".Meanwhile, Singh said that as per the National Monetisation Pipeline (NMP), 25 AAI airports have been earmarked for leasing over the 2022 to 2025 period, with expected proceeds of INR 10,782 crore. Bhubaneshwar, Varanasi, Amritsar, Trichy, Indore, Raipur, Calicut, Coimbatore, Nagpur, Patna, Madurai, Surat, Ranchi, and Jodhpur are among the airports. Others are Chennai, Vijayawada, Vadodara, Bhopal, Tirupati, Hubli, Imphal, Agartala, Udaipur, Dehradun, and Rajahmundry."The value of proceeds from the monetization of airports is dependent upon many factors including transaction timing, market conditions, investor appetite, transaction terms, etc.," the minister said.

ALSO READ - 9 airports using the PPP model will see a 50% increase in revenue this fiscal year

Govt is aware of the privacy of drone use. The government in Rajya Sabha on Monday informed that it is well aware of the question of privacy regarding the use of drones for research, development and testing purposes. Informing the Upper House in a written reply, Civil Aviation Minister Jyotiraditya Scindia said the use of drones for research, development and testing will not breach privacy.“Such use of drone remains restricted to concerned institutions and locations within the control,” he said, adding that the government has waived the requirements of type certificate, unique identification number, prior permission and remote pilot licence for operating unmanned aircraft systems for such purposes.“This provision adequately covers all offences including breach of privacy covered under the relevant laws including the Information Technology Act, of 2000 which has provisions for punishment for violation of privacy. Further, Indian Penal Code (IPC) also has provisions to penalize privacy-related offenses.

SpiceJet has completed the separation of its cargo and logistics division 'SpiceXpress' from the airline. The low-cost carrier entered into a Business Transfer Agreement with its subsidiary namely SpiceXpress and Logistics Private Limited (SXPL) for the transfer of its cargo business undertaking as a going concern, on a slump sale basis.

The hive-off which will be effective from April 1, 2023, would strengthen SpiceJet's balance sheet, wipe out a substantial portion of the airline's negative net worth and unlock significant value for SpiceJet and its shareholders.

ALSO READ - SpiceJet aggressively push for restructuring its balance sheet; expanding its fleet

According to the airline, the consideration for the slump sale will be discharged by SpiceXpress by the issuance of securities in the combination of equity shares and compulsorily convertible debentures to SpiceJet for an aggregate amount of INR 2,555.77 crore which will also strengthen the balance sheet of SpiceJet.

SpiceXpress reported a net profit of INR 51.4 crore for the April-December period of FY23. SpiceJet's cargo operations contributed to nearly 30% of its revenues in 2021-22 as revenue of INR 19,436.10 million was generated by the cargo business.

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

"The separation of our cargo and logistics arm is a stepping stone in our growth story which shall unfold in the times to come. SpiceXpress will provide greater and differentiated focus to the cargo and logistics business, and will open up the possibility of raising capital to accelerate growth. The decision to hive-off SpiceXpress is in sync with our long-term business plan and will unlock significant valuation of the logistic business. Both SpiceJet and SpiceXpress have great potential and will complement each other well."

Ajay Singh, Chairman & Managing Director, SpiceJet

According to the Spicejet CMD, the decision to hive off SpiceXpress is in sync with the company's long-term business plan and will unlock significant valuation of the logistic business.

“The hive-off will not only enable SpiceXpress to raise cash independently, but it will also significantly reduce SpiceJet’s negative net worth. Having restructured over USD 100 million, outstanding dues to Carlyle Aviation Partner last month, the hive-off will further strengthen and deleverage our balance sheet," he said.

During the pandemic, SpiceXpress played a critical role in ensuring that vital trade routes between India and other countries remained intact. With India’s transportation system coming to a virtual halt, SpiceXpress freighters and cargo planes took to the skies every single day to ferry record supplies of relief material, medicines and medical equipment to and from wherever were required.

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

In February, Carlyle Aviation Partners agreed to convert its outstanding lease rental in SpiceJet into 5% equity. The Carlyle Group firm had the largest exposure among lessors. After the conversion, Carlyle Aviation Partners' stake will be 7.5%.

ALSO READ – SpiceJet to sell 5% stake of SpiceXpress to Carlyle Aviation Partners

On Monday, shares of the airline closed at INR 31.10, up 2.8% at the National Stock Exchange. At 12.36 PM, shares of SpiceJet traded at INR 30.95 on the National Stock Exchange, up 2.31%, from Friday's close.

"The demerger, aimed at boosting the growth of its cargo business is effective April 1, 2023, and paves the way for SpiceXpress to raise funds independently," the low-cost carrier said in an exchange filing.

Global banking group Standard Chartered on Monday said it has closed an operating lease of five new Boeing 737 MAX 8 aircraft with domestic carrier Akasa Air. While the bank already provides Akasa Air with corporate banking solutions and services, this is the first aviation finance transaction with the airline, Standard Chartered said in a statement. As part of the deal, structured, financed and arranged exclusively by Standard Chartered Aviation Finance, the first four aircraft were delivered to the airline between December 2022 and March this year. The fifth and final aircraft is scheduled for delivery in the second quarter of 2023, Standard Chartered added. Akasa Air signs lease agreement for 5 Boeing 737 MAX with Standard Chartered Being a single-aisle, narrow-body aircraft, the Boeing 737 MAX has greater fuel efficiency, helps reduce CO? emissions, produces less noise and increases passenger capacity. This demonstrates Standard Chartered’s commitment to helping clients transition fleets to newer technology types and the industry to deliver on its net zero transition commitments. “We are proud to further strengthen our relationship with Akasa Air and support its growth with these new additions to its fleet. This sale and leaseback deal shows our commitment to the Indian aviation market and to support our clients’ transition to the most fuel-efficient aircraft.” Kieran Corr, Global Head of Aviation Finance and CEO of Ireland, Standard Chartered Akasa Air, which started operations on August 7 last year, had 19 Boeing 737MAX8 in the fleet as of March 25, according to an aircraft fleet tracking website. “We are delighted to expand our working relationship with Standard Chartered as we continue building one of the fastest growing airlines in the history of global aviation. This agreement is a mark of confidence and further endorses Akasa Air’s robust growth and sustainable expansion plans”. Bhavin Joshi, Co-Founder and SVP Leasing & Procurement, Akasa Air Sale and lease-back is a financial transaction where one sells assets and leases them back on a long-term basis and continues to use those without owning them. Akasa Air in November 2021 signed a deal with US aircraft maker Boeing Co to purchase 72 Boeing 737 Max 8 aircraft powered by CFM fuel-efficient, LEAP-1B engines. The airline is also working on placing a ‘large order’ of aircraft to further expand its fleet as well as secure steady supplies of airplanes shortly. ALSO READ - Akasa Air to place a large order for new narrowbody jets by year-end Completing six months of operation in February, the airline clocked a market share of 3% and a passenger load factor of more than 82%, according to data shared by the Directorate General of Civil Aviation. ALSO READ - Akasa Air to hire 1,000 people; staff strength more than 3,000 March’24 end

The Ministry of Defence signed a contract with a firm for the modernisation of Naval Aircraft Yards (NAYs) at Goa and Kochi at a cost of nearly INR 470 crore, officials said.

The NAYs undertake servicing and repairs of naval aircraft, aero engines, rotables and test equipment at Goa and Kochi, the ministry said in a statement. The ministry signed a contract with Ultra Dimensions Pvt. Ltd. (UDPL), Vishakhapatnam for "modernisation of Naval Aircraft Yards (NAYs) at Goa and Kochi, at a cost of approximately INR 470 crore", it said.

Induction of the latest state-of-the-art aircraft into the Indian Navy inventory requires modernisation of existing maintenance and repair facilities at NAYs to bridge the technological and capability gap to meet the present and future aviation maintenance challenges, officials said.

The modernisation includes repair facilities with state-of-the-art automated machinery and composite repair bays. This project will generate employment of more than 1.8 lakh man-days over three years, it said.

"The modernisation will augment the operational readiness of naval aviation platforms and reduce dependence on external agencies and foreign original equipment manufacturers (OEMs) for repairs. This project will be a proud flag bearer of 'Aatmanirbhar Bharat'," the statement said.

In addition, the Ministry of Defence has inked a contract with Mecon Ltd, Ranchi, as a project monitoring consultant for INR 24 crore, it said.

https://twitter.com/MECONLimited/status/1642784790154977280

Meanwhile, Hindustan Aeronautics Limited (HAL) tweeted: "HAL registers highest-ever revenue from operations of around INR 26,500 Crores (provisional and unaudited) for FY 2022-23 as against INR 24,620 for the previous FY. The Company has recorded revenue growth of 8% during the year as compared to last year. @DefProdnIndia @gopalsutar".

Defence Minister Rajnath Singh shared HAL's tweet and wrote: "Glad to see HAL on a higher growth trajectory. Compliments to @HALHQBLR Team".

The Bhubaneswar airport will get its maiden international flight with IndiGo starting a direct service to Dubai from May 15, officials said. Chief Minister Naveen Patnaik launched ticket sales for the flight on the occasion of Utkal Dibasa on Saturday.

IndiGo will operate the service thrice a week -- Monday, Wednesday and Friday. The inaugural ticket price is INR 10,000 per sector, an official said.

https://twitter.com/IndiGo6E/status/1642047664136044544

"Connectivity is the key to development and it has been a focus area of our government. Direct connectivity with Dubai which is one of the biggest aviation hubs will open up a direct gateway to the world," Patnaik said. The flight service will have a huge multiplier effect on investment in Odisha in sectors like IT, manufacturing and tourism, he said.

IndiGo to start the first international flight from Bhubaneswar to Dubai on May 15

IndiGo's Head of Global Sales Vinay Malhotra said the airline has been at the forefront of enhancing international connectivity at affordable fares.

Patnaik handed the first eight tickets to 'Mission Shakti' women, sportspersons, tribal leaders, 'Skilled in Odisha' students and artists. Soon, flights to Singapore and Bangkok will also commence, an official said.

"The new direct flights between Bhubaneswar-Dubai will reduce the need for travellers to connect to international destinations through metro cities only. This will not only enable faster connectivity, and enhanced accessibility but also encourage trade and tourism in the state."

Vinay Malhotra, Head Global Sales, IndiGo

Thanking Civil Aviation Jyotiraditya Scindia for facilitating the services, Patnaik said a large delegation from the state will travel on the first flight to Dubai.

According to the airline, direct connectivity to aviation hubs like Dubai, Singapore, and Bangkok will help channelise the huge potential for economic growth through enhanced accessibility. IndiGo said it recently won the bid to operate direct flights to these three gateways.

ALSO READ - IndiGo intends to have 350 aircraft in its fleet; to fly 100 million passengers by the FY24 end

Air India, the national flag carrier of India, has had a tumultuous history marked by financial struggles and operational inefficiencies. However, under the new ownership of Tata Sons, the airline has undergone a significant transformation, with the implementation of modern technologies such as ChatGPT leading the way.

One of the key changes made by Tata was to replace the manual pricing system with an automated one. Previously, Air India relied on a team of pricing analysts to manually set fares based on a range of factors such as competition, demand, and seasonality.

However, this approach was time-consuming and often led to errors or inconsistencies in pricing.

From manual pricing to ChatGPT: How Air India is transforming under Tata.

The new automated pricing system uses advanced algorithms and data analytics to optimize fares and adjust them in real-time based on demand and supply. This has not only improved the accuracy and efficiency of pricing but has also allowed Air India to respond quickly to changes in the market and offer competitive fares to customers.

Another significant change introduced by Tata has been the integration of ChatGPT into Air India's customer service operations. ChatGPT is a machine learning-based conversational agent that can understand and respond to natural language queries in a human-like manner.

This has enabled Air India to provide personalized and efficient customer service around the clock, without the need for human agents.

ChatGPT can handle a wide range of customer queries, from flight schedules and booking changes to baggage allowances and airport directions. By using natural language processing and machine learning, ChatGPT can quickly analyze customer queries and provide accurate and relevant responses in real-time. This has reduced wait times and improved the overall customer experience.

These efforts have led to significant improvements in the airline's financial performance.

In addition to these technological advancements, Tata has also focused on improving Air India's operational efficiency through better fleet management, route optimization, and cost control measures.

The transformation of Air India under Tata's ownership has been a remarkable success story, with the airline now recognized as a modern and efficient carrier. The implementation of technologies such as automated pricing and ChatGPT has played a crucial role in this transformation, allowing Air India to improve its operations, offer better customer service, and compete more effectively in the global market.