Air India Express releases COVID rules for travellers arriving from the UAE

Sakshi Jain

29 Dec 2022

Air India Express releases a new set of guidelines for travellers coming into India from the United Arab Emirates (UAE) on Tuesday, December 27.

These suggestions, which were made amid growing concern about a COVID-19 comeback, have been put in place for the safety of both residents and visitors. These occurred when Covid cases in numerous nations, including China, experienced a new upsurge. The Union Ministry of Health and Family Welfare has produced "Guidelines for International Arrivals."

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According to the guidelines, travellers must be fully vaccinated against the virus in accordance with their nation's primary vaccination schedule. In addition, it is important to be aware of social distance and masking standards while travelling. Children under the age of 12 will be exempt from the random testing that takes place upon arrival. These rules, which were provided by a division of Air India, the national carrier of the nation, are intended to protect all of its passengers and to fend off the virus.

Additionally, passengers are urged to self-monitor their health and to get tested and placed in isolation if they exhibit symptoms or are found to have symptoms. Children under the age of 12 will only be checked if they exhibit symptoms. These rules have become effective from December 24, 2022.

In reaction to a significant spike in Covid-19 cases in China over the past 20 days, India has intensified its response. India has not yet imposed any restrictions on international flights.

India has stepped up its response in response to a considerable rise in Covid-19 cases in China during the previous 20 days.

The Center has already reinstated Covid testing procedures for international travellers at all airports. Random coronavirus variant tests are being conducted on samples of people travelling from foreign nations. The Center has also mandated RT-PCR tests for all overseas travellers arriving in India from China, Japan, South Korea, Hong Kong, and Thailand. Any traveller from these nations who exhibits symptoms or tests positive for Covid will be placed in quarantine.

The Center has requested that international travellers complete Air Suvidha paperwork outlining their present state of health. A self-declaration form called Air Suvidha was developed to help with contact tracing during the pandemic. 

International travellers are required to complete Air Suvidha paperwork explaining their current health status, following the request of the Center.

“There are no direct flights from China to India and we are taking all possible precautions that we have learned in the past two years to manage the spread of infection in the country. We are already randomly testing 2 per cent samples for Covid from international passengers on arrival. In the future, we can increase it further and can also make it mandatory for all arriving passengers to get tested.”

–Mansukh Mandaviya, Health Minister, India

Air India Express is the first international low-cost airline in India, which is owned by Air India, and provides service to Southeast Asia and the Middle East.

Also read: Air India Express to fly higher as a major expansion in fleet and network in progress

Air India Express is the first international low-cost airline in India, which is owned by Air India, and provides service to Southeast Asia and the Middle East.

The 34-destination Air India Express network offers numerous weekly trips to Gulf and South East Asian cities like Dubai, Abu Dhabi, Sharjah, Bahrain, Doha, Dammam, Kuwait, Muscat, Salalah, Ras-Al-Khaimah, Riyadh, Al-Ain, Singapore, and Kuala Lumpur.

Also read: Air India to finalise the deal of 50 B737 MAX for Air India Express

Air India Express is the only airline that offers direct flights on numerous international routes. Air India Express is also the first airline to offer international air connections to numerous Tier 2 and Tier 3 towns in India. 

Source: HT

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

Sakshi Jain

29 Dec 2022

9 airports in the nation that use the PPP model are anticipated to increase their overall revenue by 50% this fiscal year to Rs 9,650 crore from Rs 6,450 crore.

A Public-Private Partnership (PPP) brings together the public and private sectors to manage and operate airports that were previously provided by the public sector.

At the beginning of December, the Airports Authority of India (AAI) leased out 8 airports namely, Delhi, Mumbai, Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru for Operations, Management and Development under Public-Private Partnership (PPP). Out of these, seven airports viz. Mumbai, Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru are managed by M/s Adani Enterprises Limited (AEL).

The Public Private Partnership (PPP) airports at Delhi, Hyderabad and Bengaluru are undertaking major expansion projects of around Rs 30,000 crore by 2025

According to the Credit Rating Agency CareEdge Ratings, the expected increase in revenue will be driven by a predicted 70% year-over-year increase in passenger traffic, which is expected to reach 93% of pre-pandemic levels in the current financial year. However, it stated that overall, passenger traffic is anticipated to increase by 1.12 times in the fiscal year beginning in April 2023 compared to the pre-Covid level.

The rating agency also predicts that the government's plan to sell its part in joint venture airports and the privatisation of airports would be further delayed.

“CareEdge Ratings has assessed the aggregate financial position of 9 PPP airports which represent 50 per cent of total India's passenger traffic. The aggregate revenues of these airports are estimated to grow by 50 per cent from Rs 6,450 crore during FY22 to Rs 9,650 crore during FY23, mainly led by strong passenger growth of 70 per cent on a year-on-year basis.”

–CareEdge, Credit Rating Agency

It continued by saying that while strong passenger traffic is advantageous for the industry, the timely issue of tariff orders with an anticipated tariff rate increase for some airports is essential.

While high passenger volumes are beneficial for the industry, prompt issuance of tariff orders with projected tariff rate increases for particular airports is crucial.

According to CareEdge, the AAI provided assistance to airport operators during the Covid period by exempting claims on revenue share, which allowed PBILDT (Profit Before Interest, Leasing, Depreciation, and Taxes) margins in FY22 to stay at a healthy 56%.

It said that from the following year, such margins are projected to stabilise at around 45%, principally supported by the increasing scale of operations, but that with the return of revenue sharing with the AAI, PBILDT margins are likely to decline to 37% during FY23.

25 airports have been chosen for monetization via the National Monetization Pipeline (NMP).

As per NMP, 25 AAI airports namely Bhubaneshwar, Varanasi, Amritsar, Trichy, Indore, Raipur, Calicut, Coimbatore, Nagpur, Patna, Madurai, Surat, Ranchi, Jodhpur, Chennai, Vijayawada, Vadodara, Bhopal, Tirupati, Hubli, Imphal, Agartala, Udaipur, Dehradun and Rajahmundry have been earmarked for leasing over the years 2022 to 2025.

Bhubneshwar Airport is among the 25 airports that have been chosen for monetization via the NMP

According to CareEdge, the projected fund inflows from the monetisation of 14 airports and the sale of AAI's share in existing airports are budgeted at Rs13,000 crore through FY23.

CareEdge Ratings feels that these timescales are likely to be further delayed due to the announcement of such aggressive timelines without any corresponding steps for monetisation, necessitating action from the Central Government.

Additionally, it was stated that the expansion of India's GDP and its impact on the rise of air passenger traffic, together with favourable demographics like an increasing working population, bode well for Indian airport operators.

Positive demographic trends, such as an expanding working population, along with the growth of India's GDP and its effect on the increase in air passenger traffic, augur well for Indian airport operators.

The paper claims that by streamlining the regulatory environment and issuing tariff orders on time, these operators will be able to see their money sooner. Additionally, for FY23, leverage indicators are probably going to stay high. However, it noted that from FY24, leverage indicators could improve as air passenger traffic increases above pre-Covid levels and new tariff orders are issued in some PPP airports.

Also read: Centre to privatise 25 airports in next 3 years

CareEdge Ratings anticipates that the air traffic growth rate between FY23 and FY25 will be 2.25 times greater than the GDP growth rate! 

Source: Business Standard

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Dense fog in Delhi: About 100 flights were delayed or diverted

Sakshi Jain

29 Dec 2022

IGI Airport of Delhi on Tuesday morning, December 27, saw at least 100 planes be delayed or diverted due to the presence of intense fog.

A "delay" is defined as a departure or arrival that is more than 15 minutes later than expected. Accordingly, the intense fog in Delhi cause about 100 flights to be delayed. Many travellers have been adversely affected as a result of the flight delays, especially considering how busy the IGI airport has been throughout the holidays.

Also read: Jyotiraditya Scindia convene meeting with aviation stakeholders regarding congestion at major airports

A modern anti-fog landing system, known officially as the CAT-III Instrument Landing System (ILS), is available at the Delhi Airport. The lack of CAT-III-compliant pilots being deployed by the airlines, according to airport officials, is another factor contributing to flight delays and diversions. 

Delhi Airport offers a cutting-edge anti-fog landing system, formally known as the CAT-III Instrument Landing System (ILS) to facilitate landing and take-off

Also read: Air India initiates ‘FogCare’ campaign in an effort to reduce disruption

The first flight diversions this season, according to airport officials, were a SpiceJet flight at roughly 11.45 p.m. and an IndiGo flight at 2.15 a.m., both of which were diverted to Jaipur.

“In both cases, the pilots were not CAT-III B compliant and therefore, were not given permission to land at the airport. During this period, visibility was around 50 metres and the ATC guided both flights to the nearest airport, which is Jaipur.”

–Airport Official

When visibility falls below 800 metres, the airport starts low visibility procedures (LVP), which are designed to make landing for flights easier.

CAT-I procedures, which are the most fundamental set of safety measures to direct pilots in landing, are in effect during this time. When visibility is less than 550 metres, only CAT-II compliant aircraft and pilots may land; when visibility is between 175 and 300 metres, CAT-III A pilots may land. The most demanding requirements for a pilot to land a flight are CAT-III B, which allows them to do it even with visibility of only 50 metres.

The most difficult landing conditions for a pilot are CAT-III B, which enables them to do so even with visibility as low as 50 metres.

Flights are still permitted to land at the airport with a visibility of 50 metres, but they are not permitted to take off until the Runway Visual Range (RVR) is 125 metres. An official stated that several arrivals and departures were delayed as a result of this.

ILS Categories

According to a Met official, visibility at the airport was usually in the region of 50 metres between 3.30 am and 7.30 am before progressively increasing to 100 metres by 7.30 am.

“During this four-hour window, visibility at both Palam and Safdarjung was 50 metres, with CAT-III B procedures in place. It increased to 100 metres at 7.30 am and then increased substantially to over 500 metres by 9.30 am.”

–Met Official

The national capital has been experiencing cold-wave conditions and thick fog for the past few days. On Wednesday morning, December 28, the city's minimum temperature was 7.8 degrees Celsius.

Forecasts predict that Delhi will have moderate to strong fog during the next two days, especially on New Year's Eve, with visibility in some parts of the city dropping to 200 metres.

The cold wave situation is anticipated to become better starting on Wednesday, but new cold wave conditions are predicted to return from December 31 to January 1, 2023, according to IMD (Indian Meteorological Department) authorities. Forecasts indicate that Delhi would likely see moderate to intense fog for the following two days as well, especially on New Year’s Eve, with visibility in some areas of the city falling to 200 metres.

Source: HT

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SpiceJet offers a Debt-to-Equity Conversion Plan to Lessors

Sakshi Jain

29 Dec 2022

SpiceJet has proposed to convert lessors into potential investors in a Debt-to-Equity Conversion Plan to settle all payment disputes.

SpiceJet has made the decision to put an end to its disagreement with aircraft lessor Goshawk Aviation. It is also looking for a loan of Rs 200 crore through the Emergency Credit Line Guarantee Scheme (ECLGS) to pay off outstanding debts and bring in new aircraft.

SpiceJet has targeted paying off INR 25 billion (USD 302 million) in overdue aircraft lease payments

After SpiceJet failed to make lease payments, Goshawk Aviation sued the airline in a UK court for $ 16 million. According to SpiceJet, all disagreements would be resolved and all legal actions will be withdrawn from the UK and Delhi courts. Two Boeing 737 MAX planes that had been grounded because of the dispute will now be able to take to the skies thanks to the resolution.

Also read: SpiceJet aims to pay off aircraft lessors’ outstanding debts by converting them into investors

SpiceJet has targeted paying off INR 25 billion (USD 302 million) in overdue aircraft lease payments. If lessors approve, the plan entails a two-step transaction: First, the company will transfer its cargo undertaking to a newly formed subsidiary, SpiceXpress, which will then issue Compulsorily Convertible Debentures (CCDs) to the parent. Then, SpiceJet will give lessors the choice to switch lease payments with the CCDs.

According to Ajay Singh, the company's shareholders recently approved the transfer of its logistical operations to SpiceXpress

According to well-placed unidentified sources cited by the newspaper, this will make them investors in the cargo arm with the potential to take an ownership position in it at a later time.

In the quarter that ended in September 2022, SpiceJet has short- and long-term lease liabilities totalling INR 70 billion (USD 845.6 million), according to the most recent financial information.

Not all of these, though, need money. According to the sources, the goal was to pay off the lessors' immediate debt of INR 25 billion (USD 302 million). Ten or so of them have received the proposal.

Ajay Singh, Chairman and Managing Director of the airline, stated in his letter to shareholders in the airline's annual report for FY2021-22 that the company had “completed a series of settlements with most of the major partners, including manufacturers and lessors.”

According to Singh, the company's shareholders recently approved the transfer of its logistical operations to SpiceXpress. As soon as the cargo and logistics platform is separated from the company, the balance sheet of the business will be greatly strengthened, and its negative net worth would be eliminated.

Also read: SpiceXpress spin-off is now approved by the creditors of SpiceJet

The company's balance sheet will be significantly enhanced once the shipping and logistics platform is cut off, and its negative net worth will be removed.

“We expect to see improvement in operations, and restructuring benefits will be visible starting Q3 FY2023. We are well placed to enter a new phase of accelerated growth to meet resurgent demand from passenger and cargo customers.”

“SpiceJet has engaged with investment bankers to raise up to USD200 million in order to achieve our future plans. Additionally, the enhancement of the Emergency Credit Line Guarantee Scheme (ECLGS) limit to INR15 billion (USD185 million) by the government will go a long way in providing much-needed stability to the sector. The infusion of additional funds will help SpiceJet normalise its obligations, unground its fleet and induct new planes into our fleet. This will go a long way in rejuvenating the airline as the induction of new planes and operation of a younger fleet will increase operational efficiency and support cash-positive operations.”

–Ajay Singh, Chairman and Managing Director, SpiceJet

SpiceJet has spent a large amount of 2022 fighting off insolvency actions brought by furious creditors

SpiceJet has spent a significant portion of 2022 defending against insolvency proceedings from outraged creditors.

Talks are being held with lessors to resolve outstanding debts. The airline then intends to introduce seven Boeing 737 MAXs. It hopes that inductions will start in October or November. The new aircraft will be used for expansion and replacements. Additionally, it will save on fuel and generate cash from the sale and leaseback of aircraft.

Source: ET

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India's East-West Airlines Director imprisoned for the '90s fraud

Sakshi Jain

28 Dec 2022

Faisal A Wahid, the Director of the now-defunct East-West Airlines (India), was given a 12-month prison term this week for a shady fuel trade in the 1990s.

East-West Airlines started its operations in the early 1990s when the Indian government introduced its "Open Skies Policy" and a number of commercial air charter companies emerged.

The Airline began with three Boeing 737-200s. Madhavrao Scindia, then-minister of Civil Aviation, ordered Indian Airlines to bring in more aircraft in 1992 to offset the effects of a debilitating pilot strike. East West later bought another four, bringing its total to 7 Boeing 737s.

East-West Airlines started its operations in the early 1990s with 3 Boeing 737-200s

On 13 November 1995, Thakiyudeen Wahid, the company’s Managing Director was shot and killed by thugs. The airline owed three Boeings to PLM Equipment, an American business, for $3.3 million. PLM Equipment went to court after first appealing to the DGCA to deregister the aircraft. East West was given a deadline by the Delhi High Court to pay up or return the plane. After that, the three aircraft were grounded. East West Airlines finally ended all operations on August 8, 1996.  

According to the then Special Public Prosecutor, Indian Oil Corporation Limited (IOCL) was providing Aviation Turbine Fuel (ATF) for East West Airlines-owned and -operated aircraft. Officials from East West Airlines were instructed to submit Demand Drafts (DDs) to IOCL for the fuel in accordance with the payment method they had mutually agreed upon.

According to the allegations, East West sent IOCL 29 copies of DDs between March 21, 1996, and May 21, 1996. The fuel was provided to them on the basis of those DDs. Original DDs were allegedly not sent to IOCL. The investigation revealed that DDs were created from several banks and that faxes were despatched but then cancelled. An FIR was filed in 1999.

East West sent IOCL 29 copies of DDs between March 21, 1996, and May 21, 1996 that was created from several banks and that faxes were despatched but then cancelled

In a case that originally came before the courts in 2001, investigators charged 8 East-West Airlines employees and Jayanand Shetty, the then Assistant Branch Manager of Vijaya Bank, with fraud and conspiracy in response to a complaint from the IOCL to the CBI's economic crimes division. Four defendants, including the airline's Deputy Managing Director, Shiabuddin A Wahid, have passed away since that time.

The CBI Court convicted Faisal A Wahid and Jayanand Shetty guilty of cheating the IOCL of INR 17.3 million (USD 209,432) through forged notes of demand, 26 years after the closure of the airline.

DD copies were forwarded by fax to the oil business, which then supplied the fuel, as part of the scam. Following the correct procedure, East-West cancelled the order and never gave the oil firm the initial demand draught. The court found that this took place five times with the help of Jayanand Shetty, a bank official who helped by not deducting the fuel expense from the airline's accounts.

The CBI Court convicted Faisal A Wahid and Jayanand Shetty guilty of cheating the IOCL of INR 17.3 million (USD 209,432) through forged notes of demand, 26 years after the closure of the airline.

Faisal was only a minor player in the fraud, according to Judge SU Wadgaonkar, while the primary defendant, Shihabuddin Wahid, passed away during the twenty-one-year legal battle.

Faisal was given a prison sentence as well as a fine of INR 650,000 (USD 7,869). In addition, Wadgaonkar penalised the airline INR 50,000 (USD 605). The judge granted both men bail while the case was pending an appeal to India's High Court. The bank official had been fined and given a year in prison.

On December 20, 2022, Faisal Wahid, the Airline's Director of Operations and Marketing, appeared before a criminal court in Mumbai and was given 12 months imprisonment. 

Source: TOI

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Odisha to provide direct flight services to Singapore, Bangkok, Dubai

Sakshi Jain

28 Dec 2022

A plan to run direct flight services to Singapore, Bangkok and Dubai was accepted by the Odisha Cabinet on Tuesday, December 27.

Naveen Patnaik, the Chief Minister, presided over the meeting of the cabinet. According to Chief Secretary SC Mohapatra, IndiGo expressed interest in operating flight services from Biju Patnaik International Airport, Bhubaneswar to Dubai, Singapore, and Bangkok as proposed by the state government.

Direct Flights from Odisha's Biju Patnaik Airport to Dubai, Singapore and Bangkok soon

"Planes having 186 seats will be operated and the expenditure will be borne by the state government. The revenue generated from ticket sales will be retained by the state government.”

–SC Mohapatra, Chief Secretary, Odisha

According to the most recent travel reservations, internal travel appears to have recovered after COVID-19, but this has not yet been the case for foreign visitors to Odisha. Stakeholders blame the dearth of nonstop international flights to Bhubaneswar for this.

According to a report from the Ministry of Tourism, the state has only witnessed a sparse number of foreign visitors so far this year, and there were just 2,269 of them in contrast to 37.4 lakh domestic arrivals. Interestingly, despite many lockdowns throughout the year, the number of international tourists visiting Odisha in 2020 was 10,206, a higher number than in 2019. The state had received 46.2 lakh domestic tourists that year.

After COVID-19, domestic travel appears to have rebounded, but this has not yet been the case for international tourists in Odisha.

Prior to Covid, the state welcomed 1.15 lakh foreign visitors, and the domestic tourism market saw 1 crore visitors in 2019. The majority of foreign visitors to Odisha during this time—those who choose organised tours—came from Malaysia and Western Europe.

“Of the total bookings for organised tours between October this year and March-end next year, foreign arrivals in Odisha are only 10 per cent. Blame it on the lack of direct international flights. Prior to Covid, we at least had direct flights to Kuala Lumpur and Malaysia.”

–Gagan Sarangi, Chairman, Indian Association of Tour Operators (IATO)

The travel and hospitality sectors were banking on the possibility of direct flights from Bhubaneswar to Dubai, Singapore, and Bangkok (these nations have historically been significant aviation hubs). The above-mentioned three nations were the first in line when the state government issued a Request For Quote (RFQ) two months prior to selecting airlines for a direct route between Bhubaneswar and overseas locations.

Only one airline, Indigo, has expressed interest in running three flights per week, including weekends, and direct flights from Bhubaneswar to the three nations. The proposal from Indigo has been submitted to the state government for review, according to representatives of the transport department.

Indigo has expressed interest in operating three weekly flights from Bhubaneswar to the three countries

“For any international flight service, there is a need for continuity. We are hoping that if one airline begins its direct flights from Bhubaneswar to different countries and is provided all the facilities to continue the service, other airlines will follow.”

–Usha Padhee, Principal secretary of Skill Development and Technical Education, Odisha

Foreign travel operators from Vietnam, Malaysia, Thailand, and other South Asian nations expressed interest in partnering with the state to promote tourism at the Odisha Travel Bazaar earlier this year, provided there is direct aircraft connectivity.

Also read: Malkangiri airport in southern Odisha is scheduled to open in 2024

International tourism can be resurrected, according to JK Mohanty, Chairman of the Hotel & Restaurant Association of Odisha (HRAO) and IATO (eastern area), if there are direct flights between Bhubaneswar and Bodh Gaya and Thailand, Dubai, Vietnam, Singapore, Malaysia, and Nepal.

“Because, a lot of international tourists come to Bodh Gaya through Kolkata, Delhi or Mumbai for Buddhist tourism. HRAO also suggests that international flights to Delhi, Mumbai, Kolkata or Chennai can be diverted to Bhubaneswar for lessening the congestion.”

–JK Mohanty, Chairman of the Hotel & Restaurant Association of Odisha and IATO (eastern area)

For Buddhist tourism, a large number of foreign visitors go via Kolkata, Delhi, or Mumbai to Bodh Gaya.

For the time being, Odisha has added three foreign locations to its list. It will expect to improve connectivity to other foreign locations as more tourists arrive.

(With inputs from The New Indian Express)

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