Air India intends to use ChatGPT's most recent version, GPT4

Radhika Bansal

21 Mar 2023

Air India plans to use GPT4, the latest, enhanced version of the viral chatbot ChatGPT, its chief executive said on Monday, as the airline aims to improve customer experience on its website, reported The Economic Times.

Use of the generative artificial intelligence-based chatbot will not be “gimmicky”, but will actually enhance the airline’s functions, Campbell Wilson said at the CAPA India Aviation Summit. Wilson later told ET that the airline would use GPT4, which was launched by Microsoft-backed OpenAI last week.

A person close to the matter said the plan was to start with using the technology to power the FAQ (frequently asked question) section on the website. “Right now, the FAQ segments are inadequate and not informative. It should be able to answer all questions from baggage allowance to best fares to the most feasible flight timings. We are trying to get to that stage,” the person said. Going forward, the entire graphic user interface may be overhauled to be powered by GPT4.

According to The Economic Times report, chief digital and technology officer Satya Ramaswamy said that the airline was looking to implement generative AI to make sure that it was ahead of the curve. It is looking at using generative AI to summarise the pilot briefings, while also experimenting with other use cases, he said. "We do see the promise of generative AI primarily because as an airline, we are swamped with data and information," Ramaswamy said.

"Before pilots embark on one of their long-range journeys such as going from say Mumbai to San Francisco, which takes about 14-15 hours or so, they are given a briefing document which is about 150 pages long. And this is given a few hours before the flight departs. We are looking at using generative AI to summarise the pilot briefing to extract the most important elements and point it out to the pilots," he explained.

Air India is also working on building the ability for pilots to ask questions, Ramaswamy said. It could be details about the airspace closure en route or what is the alternative airport in the event of an emergency. It is looking at other use cases as well. One of these will be management-focused, wherein if the CEO wants to get the answers to the most pressing questions every day in the morning, he would be able to ask the generative AI system which will answer the questions.

The language model has been a rage in the way it can replicate human capabilities on a wide range of functions - from writing poetry to financial reports and even code. GPT4 has several enhanced capabilities, including “seeing”, describing and enhancing pictures. Already, many companies including American payment processing platform Stripe, financial services company Morgan Stanley and General Motors have said they would use ChatGPT.

Jaspreet Bindra, managing director and founder of Tech Whisperer Ltd UK, which does advisory and consulting work on digital transformation Air India, told ET that there were a lot of powerful AI use cases for aviation across aircraft design, predictive maintenance, supply chain optimisation, route planning and so on and in the generative AI space too there could be a few experiments that aviation companies could dabble in which include pilot training and customer service. However, he flagged concerns about the issues of “hallucination” that come with generative AI.

"Gen AI in aviation is at a very early stage and one should proceed with caution, especially because safety is paramount in aviation, and regulation is very strict," Bindra said. "Generative AI, even GPT4, is not factual, is prone to ‘hallucinating’, and is designed to be plausible rather than accurate. While GPT4 is better than ChatGPT/GPT3.5 on the above, it is nowhere near perfect. Therefore, one needs to be careful." Safety is critical in aviation and regulatory agencies such as the US Federal Aviation Administration must approve any new technology before it can be used in commercial aviation, Bindra said. "GenAI systems should be compatible with existing aviation systems, such as ATC, etc.”

Air India, under its new owners, Tata Sons, has been trying to reinvent itself in every aspect — product, operations and finance. Among other things, the airline has placed an order for 470 planes at a list price of over USD 70 billion. Wilson recently said the airline was in talks with Jaguar Land Rover for ideas on cabin design as it refurbishes its existing fleet and gets delivery of new aircraft. It is also overhauling its loyalty programme, revenue and fleet management functions and HR structure.

(With Inputs from The Economic Times)

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Turkiye will stop servicing Russian Aircraft

Jinen Gada

21 Mar 2023

Turkish airports have been banned from refuelling Boeing aircraft operated by Russian airlines. The ban, introduced by Turkey’s customs and trade ministry and also forbidding the provision of related services to the American-made aircraft.

On March 9, Turkish customs officials abruptly stopped permitting the transit of sanctioned goods bound for Russia through Turkish ports.

With Europe and the US running out of options for adding more sanctions to those already imposed on the Kremlin and sanctions ‘leakage’ a chronic problem, they have switched emphasis to more effectively enforcing the wide-ranging sanctions already applied.

Turkey Stops Servicing Russian-Operated Boeing Aircraft.

Turkey’s move against Russian airline-operated Boeings means that the carriers can still fly to and through Turkey, but they will have to deploy other aircraft such as Airbus jets.

However, US authorities want Turkey to stop receiving both Boeing and Airbus flights from Russian carriers, on the basis that Airbus planes contain many American parts.

Wrecking most flight links between Russia and Turkey would be a big win for the West, given that since Russia became a pariah to the West following its invasion of Ukraine 13 months ago Turkey—which has imposed no sanctions on Russia—has become an important bolthole for Russian investors, while its mega airport in Istanbul offers Russians connections to destinations the world over.

Also, Turkey has become an even bigger holiday attraction for millions of Russians than it already was given the limits the economic and political backlash against Russia has put on travel options.

Turkey has become an even bigger holiday attraction for millions of Russians.

US media reported that at the end of 2022 senior American officials warned that Turkish individuals were at risk of jail, fines, loss of export privileges and other measures if they provided services like refuelling and spare parts to US-made planes flying to and from Russia, and also Belarus, in violation of export controls imposed last year.

By the end of January, Russian and Belarusian airlines, including the Russian flagship carrier Aeroflot, had operated more than 2,100 flights using US-made Boeing jets to Turkey since October 1.

The flights included regular trips from Moscow to Turkish destinations including Istanbul, Izmir and the Mediterranean resort city of Antalya.

With inputs from bne.

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Vietnam Airlines to recommence daily flights between Vietnam and India

Radhika Bansal

20 Mar 2023

Vietnam Airlines will operate daily flights between Vietnam and India again from March 26. Specifically, the SkyTeam alliance member will operate four flights a week on the Hanoi – Delhi route, departing on Mondays, Wednesdays, Fridays and Sundays, as well as three weekly flights on Ho Chi Minh City (HCMC) – Delhi, departing on Tuesdays, Thursdays and Saturdays.

The increase in flights will translate into 30% more capacity between Vietnam and India on Vietnam Airlines, compared to the current flight schedule, says the airline.

To celebrate the flight resumptions, Vietnam Airlines has launched special roundtrip economy class fares starting at VND7 million, or US$295, including taxes and fees when departing from Vietnam. Similarly, passengers flying from India to Vietnam on the new services will see reduced fares from INR23,950, or US$290, including taxes and fees.

Vietnam Airlines to recommence daily flights between Vietnam and India

Vietnam Airlines will compete on Indian routes with low-cost champion Vietjet Air. Re-capitalised Indian flag carrier Air India does not operate any flights to Vietnam at present.

ALSO READ - VietJet inaugurates 2 new routes to India

Vietnam Airlines will roster its Airbus A321 aircraft on both Hanoi-Delhi and HCMC-Delhi. These aircraft feature 16 business class recliner seats across a 2-2 configuration and 168 standard economy class seats in a 3-3 layout.

Flights depart Vietnam between 1800 and 1900 and arrive in the Indian capital around 2200 following flights that last approximately five hours. The returns leave Delhi before midnight and land back in Vietnam between 0600 and 0700 the following morning.

Vietnam Airlines officially launched the direct air route between Vietnam and India in June 2022. In the time ahead, it is set to open a new route to Mumbai, one of the largest economic, cultural, and social centers of the South Asian nation.

Tourism from India to Vietnam has been recovering robustly post-reopening. Last year, Vietnam received 137,000 Indian tourists, 82% of the number it welcomed pre-pandemic. About 200,000 Indians visited Vietnam in 2019. Destinations like Vietnam are fast gaining popularity among Indian families, thanks to better accessibility and connectivity with direct flights, as well as faster e-visa processing.

Cover Image - Sieu Viet

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Lufthansa set to launch a new airline "City Airlines" by mid-2023

Radhika Bansal

20 Mar 2023

Lufthansa Group is rolling out a new airline in its lineup, City Airlines, which will combine the quality of Lufthansa and the experience of Lufthansa CityLine. All three airlines plan to work in close coordination, with the launch scheduled for mid-2023.

The brand-new website for City Airlines, the newest airline to join the Lufthansa Group, is already operational. The airline will begin operations in mid-2023 and fly to "important European cities and isolated regions," though an official opening date has not yet been announced.

According to Aviator, the regional carrier will use an Airbus fleet - likely A319s and is actively recruiting new employees. The "quality of Lufthansa" and the "experience of Lufthansa CityLine," another division of the Lufthansa Group, will apparently be combined by City Airlines.

Lufthansa set to launch a new airline "City Airlines" by mid-2023

City Airlines will, however, harness the "dynamism of a new young enterprise," according to the carrier's website. The carrier will operate short- to medium-haul routes (both international and domestic)

City Airlines GmbH was founded in Munich, which will act as the carrier’s hub, during the summer of 2022 according to the website.  City Airlines will focus on short and medium-haul routes, expanding the European route network within the Lufthansa Group. 

On the airline’s website, the Lufthansa Group writes: “We expand the European route network in the Lufthansa Group and bring you to your destination in our modern and economical Airbus fleet. Behind the company is a highly professional team in the cockpit and cabin, characterized as much by training by Lufthansa standards as by its great diversity.” 

City Airlines is looking for a “highly professional team of colleagues” with various skills and backgrounds, who can “think outside the box”. 

Lufthansa Group chief Carsten Spohr had signalled, early last year, that the company was intending to obtain a new air operator’s certificate for a “second CityLine”, which would probably have a similar-sized fleet. The company had planned the division to accommodate former Germanwings crews. Spohr had also pointed out that CityLine will not be permitted, under a union agreement, to operate aircraft with more than 75 seats from 2026, and that the new operation will offer an alternative.

Lufthansa had planned to hire former Germanwings pilots under contracts with lower wages compared to those offered by other airlines in the group. But the plan was met with opposition. It is worth noting that Germanwings ceased operations in 2020.

Lufthansa CityLine based in Munich Airport is a wholly owned subsidiary of Lufthansa and maintains hubs at Frankfurt Airport and Munich Airport, from where it operates a dense domestic and European network as a member of Lufthansa Regional.

ALSO READ - Lufthansa orders 22 new long-haul aircraft from Boeing & Airbus for USD 7.5 billion

Cover Image - Felix Gottwald 

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Aéroports de Paris & GMR Airports to merge with GMR to establish ‘agile’ airport platform

Radhika Bansal

20 Mar 2023

Aéroports de Paris and GMR Airports Infrastructure Ltd. agreed to fold their joint-venture company into GMR, giving ADP a liquid stake in a business that owns airfields in India.

ADP and GMR Airports Infrastructure own 49% and 51%, respectively, of the unlisted GMR Airports Ltd., according to a statement Sunday from the French company, which operates Paris’s Charles de Gaulle and Orly.

Combining GMR Airports Infrastructure and GMR Airports will simplify the capital structure of the unlisted company, allowing the combined entity to capture new business more easily, the companies said. The companies said the merger will take place in the first half of 2024. ADP would hold a 45.7% stake in the combined GMR Airports Infrastructure and GMR Airports.

This merged entity – which would be called New GIL – would be 33.7%-owned by GMR, and 32.3%-owned by Groupe ADP, with the rest publicly-held.

But Groupe ADP would have a 45.7% economic interest in New GIL, against GMR’s 27%, and the public’s 27.3% if optionally convertible preference shares are taken into account. This will allow Groupe ADP to retain a “substantial interest” in the performance of the asset, says the company.

“Demand for air travel has picked up substantially, which will speed up airport privatization initiatives of the respective governments across the world,” GMR said in a separate statement.

The merged company, “with an improved balance sheet, will be in a much stronger position to further scale up the airport business by judiciously participating in profitable opportunities mainly in India, South Asia, Southeast Asia and the Middle East.” GMR’s portfolio includes airports in Delhi and Hyderabad.

ADP will invest €331 million ($353 million) in foreign currency convertible bonds issued by GMR Airports Infrastructure, with the proceeds used by the Indian company to clear its balance sheet by repaying corporate debt and also settling a significant part of its liabilities. The investment will lead to a cash expense of the same amount in the coming weeks, ADP said.

The deal is in line with ADP’s strategy of selective international growth, and the French company confirmed its objective for net financial debt to be 3.5 to 4.5 times earnings before interest, tax, depreciation and amortization in 2025. It also confirmed its dividend policy of a 60% payout ratio on earnings for 2023-2025, with a minimum of €3 a share.

“In India, in particular, privatisation projects have been announced by the government. To fully exploit those growth opportunities, the merger of GAL and GIL would allow New GIL to form a more agile platform able to capture this profitable development potential.”

The company said that one of the main reasons for the merger was strengthening the strategic relationship with Groupe ADP which will now hold a stake in GMR Airports Infrastructure as a result of the merger. The issue of FCCBs to Groupe ADP is expected to reduce the cost of capital.

“Going forward, an improved balance sheet will facilitate greater access to growth capital at lower cost,” the company said. “Groupe ADP’s subscription to FCCBs is a testimony to the strength of the  relationship between GMR & Groupe ADP.”

Repaying corporate debt and settling the majority of the contingent liabilities related to GMR Power would deleverage its balance sheet.

The merger would add value to shareholders since they would ”move closer to the airport assets and cash flows” removing the holding company-subsidiary structure to which the market usually assigns a discount. The merger is expected to be completed in the next financial year, subject to all other statutory approvals.

ALSO READ - GMR to separate Airports Division into a separate entity

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Air India facing a pilot shortage

Jinen Gada

20 Mar 2023

Air India, the national carrier of India, has been facing a major challenge in recent times due to a pilot shortage that has resulted in long delays for its overseas flights. The airline has been forced to cancel several flights, affecting thousands of passengers, and it has been struggling to find a solution to this growing problem.

Air India has been facing increasing complaints from passengers about long delays in flights, especially ultra-long-haul flights like those to US destinations. The root cause of these inadvertent delays is an acute shortage of pilots appears as the most likely reason.

The pilot shortage is not a new issue for Air India. The airline has been grappling with this problem for some time now, and it has been a major impediment to its growth and profitability.

Pilot shortage most likely causing long delays in Air India's overseas flights.

The impact of the pilot shortage has been most acutely felt in Air India's overseas operations, where flights have been delayed or cancelled, leading to frustration and inconvenience for passengers.

Air India's fleet has increased sharply since the Tatas took over. Many of the grounded aircraft have been serviced and put back in the air. Air India signed lease agreements for 36 aircraft to augment its expansion plans, many of these planes are also being added to the fleet.

The airline needs 1,850 pilots to fly 114 aircraft. Air India currently has only about 1,600 pilots, and this shows a clear shortage in the required critical manpower.

While the capacity is being expanded, sources tell pilots and crew strength are not at par with aircraft addition.The airline currently has 114 aircraft of which 68 are narrow-body planes and 46 are wide-body planes including 19 Boeing 777s and 27 Boeing 787s. Each 777 requires 26 pilots and the 787 requires 20 pilots. So 46 wide-body planes need 1,034 pilots.

Adding these numbers tells us that the airline needs 1,850 pilots to fly 114 aircraft. But we learn that Air India currently has only about 1,600 pilots, and this shows a clear shortage in the required critical manpower.

The airline needs 1,850 pilots to fly 114 aircraft.

The pilot shortage at Air India is a reflection of a broader problem facing the aviation industry. The demand for pilots is expected to increase in the coming years as more airlines expand their operations, and the competition for talent is likely to intensify.

In conclusion, the pilot shortage at Air India is a significant challenge that is affecting the airline's operations and causing inconvenience to passengers. While the airline is taking steps to address the problem, a long-term solution will require the concerted efforts of the industry as a whole.

Only by addressing the underlying causes of the pilot shortage can the industry ensure a steady supply of qualified pilots and maintain the high standards of safety and efficiency that passengers expect.

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