Air India To Scale Up Cargo Operations By Inducting Freighter Aircraft
Radhika Bansal
17 Apr 2023
Air India is looking to scale up its cargo business and is exploring the possibility of inducting freighters, in a bid to gain market share, according to a report published by Business Standard. The Tata Sons-owned airline, which boasts a 118-plane strong fleet, recently ordered 470 aircraft. Unlike IndiGo and SpiceJet, it doesn't possess any freighters — planes that purely fly cargo. It transports freight in the belly space of its Boeing and Airbus passenger aircraft.
“We are exploring the possibility of inducting freighter capacity into the network, both directly and in collaboration with partners,” Air India said in an emailed response to Business Standard, adding that cargo revenue is “expected to be a significant part of the revenue mix” of the airline. It did not share any revenue figures.
Following the announcement of a record-breaking purchase of 470 aircraft earlier this year, the airline's fleet will significantly grow over the following several years. The deal, which includes Airbus and Boeing planes, aspires to restore the carrier to the top-tier global stature it had in earlier decades. Air India could buy up to 80 freighters over the next 20 years to capitalise on the fast increase in e-commerce demand.
Six months have passed since Air India announced its five-year transformation plan, with progress running smoothly for the Tata-owned carrier. Along with its huge order with Airbus and Boeing, the airline has committed USD 400 million to fleet refurbishments and USD 200 million to IT innovations, which includes the development of artificial intelligence (AI) systems.
Air Freight in India
Air freight capacity out of India is growing, both in terms of belly capacity and freighters – with the latter mostly in the form of conversions. Tata’s fleet push has now set the stage for heightened competition and newer growth strategies among carriers.
Industry sources believe network expansions from Air India’s fleet rebuild will also present significant growth potential for the nation’s air freight industry, already boosted by government policy reforms and growing investment in new airport projects. Air India has a dedicated freight wing, known as Air India Cargo, serving some international locations and 56 domestic destinations, according to available data.
Cargo operations have become a significant revenue contributor for cash-strapped Indian airlines in the past two years, amid heavy passenger traffic declines at the height of Covid-induced lockdowns and disruptions.
Air India Enters Second Phase of Vihaan.AI
'Taxi', the first phase of the transformation plan Vihaan.AI, which focussed on "addressing legacy issues of the airline at scale and laying the foundation for future growth," has concluded, the airline said and added that now the second phase 'Take Off', -- that will focus on developing the platforms, processes, and systems needed to build toward excellence -- has commenced. In this phase, Air India is expected to complete the consolidation of its airline business, develop a world-class institute for training and build on the momentum seen in the first phase. Air India CEO and MD Campbell Wilson said the first six months of the transformation journey had made great strides in tackling many issues that had built up over the years, and the airline has come a long way in establishing foundations for growth.
The second phase will also witness the consolidation of AirAsia India and Air India Express; the Low-Cost Carrier (LCC) entity has already merged their core reservations platforms, websites, and customer-facing systems. "Vistara will also be merged with Air India following the grant of regulatory approval. The release said that developing a world-class training academy will also take shape as the future direction and configuration of the airline's line and base maintenance," the release said. Apart from launching premium economy seats for the first time on select long-haul flights, Air India has revamped its menus on international and domestic routes. The airline also rolled out over 29 new policies across employees to improve welfare, designed new remuneration programs for legacy staff, and "onboarded more than 3,800+ employees across crew and other functions to support capability and growth," the release said.
(With Inputs from Business Standard)
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Saudi Airliner Damaged by Gunfire Amid Sudan Tensions
Abhishek Nayar
17 Apr 2023
Saudi Arabian Airlines, the country's official airline, recently experienced damage to one of its planes due to tensions in Sudan. According to reports, the jet was struck by gunfire as it prepared to depart from Khartoum International Airport on April 15, 2023. This event has raised questions about the safety of aviation travel in Sudan as well as the region's greater geopolitical issues.
The Incident: What Happened?
Sudan's army and paramilitaries clashed, and the physicians' union claimed three civilian casualties, including one at Khartoum's airport, City Centre.
The Situation: Sudanese Tensions
The event occurred during Sudan's continuous political and social upheaval, which was aggravated by a recent military coup that deposed the country's democratically elected government. The world community has denounced the October 2021 coup, which has resulted in significant demonstrations and civil turmoil in Sudan.
It was a major component of negotiations to finalize a settlement that would restore the country to civilian control and resolve the crisis created by their 2021 coup, which triggered a worsening economic catastrophe in what was already one of the world's poorest countries.
The Implications: What Does This Mean for the Region and the International Community?
The event has prompted worries about the safety of regional aviation travel. Attacks on Khartoum International Airport have occurred in the past, with a 2019 attack on the airport's compound killing five people. Another incident occurred in January 2020 after Iranian troops shot down a Ukrainian passenger jet, killing all 176 people on board.
Conclusion
Furthermore, the recent shooting incident involving a Saudi Arabian Airlines jet in Sudan underscores the region's continued tensions and instability. It serves as a vivid warning of the dangers of violence spreading to other regions, such as transportation infrastructure and critical economic sectors. The event also highlights the need for the international community to address the underlying political and socioeconomic concerns that are feeding regional tensions and find a peaceful settlement to the disagreements that are driving the war.
With Inputs from HindustanTimes
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Russian Airline Seat Capacity to Experience 22% Growth
Abhishek Nayar
17 Apr 2023
According to current predictions, Russian airlines' seat capacity is predicted to increase by 22% throughout 2023. After the COVID-19 epidemic hampered worldwide travel, the country's aviation sector has been steadily recovering, and this predicted increase in capacity will raise the industry's prospects even more.
The Statistics
Cirium data predicts a significant rise in passengers travelling on Russian airlines throughout 2023. Seat capacity is expected to expand by 22% year over year. This forecast is mostly predicated on a rise in foreign routes. These routes across diverse markets include, among others, growing flights to Dubai, Istanbul, Phuket, and Antalya.
Increasing Demand for Air Travel
The COVID-19 pandemic has had a huge influence on the aviation sector, resulting in a dramatic drop in air travel demand in 2020. Yet, as the world recovers from the epidemic, demand for air travel is projected to increase. This recovery is predicted to be much stronger in Russia, with the number of aviation passengers likely to approach pre-pandemic levels by 2023.
Causes for Growth
There are various reasons why the Russian aviation sector is predicted to grow seat capacity by 22% by 2023. The domestic market is one of the key drivers. Because of the epidemic, many Russians choose to travel domestically rather than overseas, which has increased demand for domestic flights. Airlines have responded by expanding domestic flights and boosting capacity on existing routes. This has resulted in a 16% rise in domestic capacity in 2021, which is likely to continue through 2023.
Post-Epidemic
Russia's travel numbers followed the rest of the globe following the pandemic, with a significant decline in travel due to the virus and global lockdowns. The global travel sector began to rebound in 2021 and continued to grow through 2022. Nevertheless, due to the invasion of Ukraine and the start of the Ukraine war, the Russian tourist business decreased once again in 2022. This was because several nations across the world placed travel and airspace restrictions, preventing Russian airlines from travelling to those countries.
Aeroflot made an attempt to recoup from missing flights at the start of the travel restrictions placed on Russian airlines by governments throughout the world. The airline increased domestic flights throughout Russia. Aeroflot also boosted international flights to nations with no travel restrictions. Turkey, Egypt, Thailand, and the United Arab Emirates were among the destinations.
The Effect on Russia's Aviation Industry
The anticipated rise in seat capacity is a positive sign for Russia's aviation sector, which has struggled with decreased demand and greater competition in recent years. Its expansion is likely to provide new employment opportunities in the sector, notably in aircraft manufacture, maintenance, and airline operations. It is also projected to increase income for airports and local economies as more individuals get access to air travel.
Taking the Next Step
Notwithstanding the obstacles caused by sanctions, the Russian aviation sector is likely to expand in the next few years. Its development is likely to be driven by the government's support for the sector as well as high demand for local and international travel. Furthermore, the sector is attempting to create its own technologies in order to lessen its dependency on Western suppliers.
Conclusion
Finally, the Russian aviation sector is predicted to have a 22% growth in seat capacity through 2023, driven by robust local demand and the global aviation industry's recovery. Notwithstanding the effect of sanctions, the industry has shown resilience and is prepared for continued expansion in the coming years. The government's backing for the business, as well as its attempts to create its own technologies, will be critical in maintaining the industry's long-term viability.
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Civil Aviation Ministry Approves Proposed Site At Cheruvally Estate For Sabarimala Airport Project
Radhika Bansal
17 Apr 2023
The Union Ministry of Civil Aviation has approved for the proposed Sabarimala International Greenfield airport in Erumeli, marking a significant step forward in the state government's ambitions to establish an airport for pilgrims to Sabarimala. The state government's report on the techno-economic feasibility assessment was taken into consideration while approving the project. A detailed project report (DPR) for the project would shortly be prepared by the government, according to sources. According to reports, "the government will quickly locate a competent agency to draught the DPR and begin the processes sooner rather than later."
Confirming the development, V Thulasidas, special officer for the Sabarimala Airport, said the project has passed a major hurdle by gaining the approval of the Civil Aviation Ministry. “It was a long-drawn process as the Union Ministry had sought several clarifications based on our report. As the sanction was received after the scrutiny of a steering committee under the Civil Aviation Ministry, which consists of representatives from the director general of civil aviation (DGCA), Airport Authority of India (AAI) and other govt departments connected with the airport project, we have passed a major milestone in the technical side of the project. Now we can step into all further procedures.”
Current Situation of the Project
Presently, the social impact assessment (SIA) study for the project in Erumeli South and Manimala villages, under the aegis of the Centre for Management Development (CMD), is in its final stage. SIA is mandatory for land acquisition as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LARRA), 2013. The Environment Impact Assessment (EIA), being done by Louis Berger, the company which prepared the techno-economic feasibility report for the project, is also nearing completion. Earlier, soil tests were conducted for the project.
According to him, the proposed airport will have a 3.5-km-long runway with adequate width to enable the operation of aircraft of all sizes. Upon completing the land acquisition, the detailed project report (DPR) will be formulated, followed by the constitution of a Special Purpose Vehicle (SPV) to execute and operate the project. “Assuming that all the requisite approvals are received, it will take another three to four years to construct the airport,” he added
As per the latest government order (GO), a total of 1,039.876 hectares (2,570 acres) of land in Erumeli South and Manimala villages in Kanjirappally taluk will be acquired for the construction and development of the airport. The proposed area includes 2,263.18 acres of land in Cheruvally Estate, presently under the possession of Ayana Charitable Trust under K P Yohannan’s Believers’ Church, and an additional extent of 307 acres outside the estate.
HC Grants Permission
In yet another fillip to the Sabarimala airport project, the Kerala High Court has granted consent to the Kerala Government to proceed ahead with the Social Impact Assessment survey of the Cheruvally Estate where the proposed greenfield facility is being planned. The court also dismissed a petition moved by the Ayana Charitable Trust, which currently owns the Cheruvally Estate, seeking to cancel a notice issued by the State Government for the survey under the Kerala Survey and Boundaries Act. (The Trust was previously named Gospel For Asia which is behind the Believers Church.)
Earlier, the State Government had issued an order to take over 1039.876 hectares (2,570 acres) of the Cheruvally Estate spread over Erumeli South and Manimala villages in Kanjirappally Taluk. Subsequently, the Revenue Department posted a notice on the estate building as a preliminary step to carry out a survey.
Location of the upcoming airport
The Union Ministry of Civil Aviation has granted site clearance for the Sabarimala Greenfield Airport project in Kerala. The Ministry gave the clearance based on various inspections carried out at Cheruvally Estate in the Kottayam district and nearby areas. The new airport at Cheruvally is expected to boost development in five districts in Central Kerala and the adjacent hill region.
The Aviation Ministry’s site clearance is a major development related to the airport project which certifies that the Cheruvally estate and adjacent land are suitable to construct an airport. The clearance follows satisfactory replies given by the state government to queries raised by the Director General of Civil Aviation (DGCA) and the Airports Authority of India (AAI).
The next step after site clearance is land acquisition for which the Kerala Industrial Development Corporation has initiated preliminary measures. Subsequent steps are the preparation of a detailed project report, setting up a company for airport construction and operations and appointment of a consultancy. Tenders would be invited for construction after land acquisition procedures are completed.
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US January Passenger Traffic Increases 28%
Abhishek Nayar
17 Apr 2023
The US Department of Transportation (USDOT) has revealed passenger traffic figures for January 2023, which show a significant rise in passenger travel when compared to the same month in 2022, with figures from January 2023 approaching the record 70.8 million passenger movements set in January 2020. The figures show a 28 percent annual growth rate, which is a notable indicator of recovery for the aviation sector, which was heavily damaged by the COVID-19 epidemic.
Continued Progress
The most recent statement from the EPA, published earlier this week, verified the quick post-pandemic recovery of air travel in the United States, despite weather-related delays and obstacles through December.
Overview of the Report
The USDOT's January passenger traffic report is based on the Bureau of Transportation Statistics (BTS). The report includes data on the number of passengers who flew locally and internationally during the month of January. Passenger enplanements, deplanements, and connecting passengers are among the types of data collected.
Two measurements of passenger enplanements on US airlines
January, seasonally adjusted:
- System-wide enplanements (78.1 million) are up 4.0% from December 2022 (75.1 million).
- Enplanements were down 3.5% in January compared to the all-time high of 80.9 million in January 2020.
- Domestic enplanements (68.5 million) were 3.7% lower than the all-time high of 71.1 million in January 2020.
- International enplanements (9.58 million) were 2.2% lower than the all-time high of 9.79 million in January 2020.
January, unadjusted:
- System-wide enplanements (67.1 million) were 6.5% lower than in December 2022 (71.7 million).
- January system-wide enplanements were down 5.2% from the all-time high of 70.8 million set in 2020.
- Domestic enplanements (58.1 million) were 5.8% lower than the all-time January high (61.6 million) set in 2020.
- International enplanements (9.03 million) were 1.5% lower than the all-time high in January (9.16 million).
Passenger Traffic: Domestic vs. International
According to the data, domestic passenger traffic climbed by 27.5% when compared to the same time in 2022. In January 2023, 62.8 million people travelled inside the United States. This is a huge rise from the 49.3 million domestic passengers who travelled in January 2022.
Travel Demands
With the termination of the COVID-19 national emergency, which President Joseph Biden signed into law on April 10, travel restrictions to the United States are likely to ease in May, with unvaccinated tourists authorized to enter the country for the first time.
Busiest Airports
In addition, the research identifies the busiest airports in terms of passenger volume in January 2023. Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, Dallas/Fort Worth International Airport, Denver International Airport, and Chicago O'Hare International Airport were the top five airports in terms of passenger traffic.
Personnel Shortage
In response to increased passenger demand, airlines and airports have initiated recruiting sprees to ensure smooth operations during peak seasons and to avoid a repetition of the disruption observed in the summer of 2022. Nevertheless, airport operations in New York and Washington, DC, are projected to be reduced between May 15 and September 15, owing to local shortages of Air Traffic Control (ATC) personnel.
Conclusion
The January passenger traffic data from the USDOT shows a significant rise in passenger travel when compared to the same time in 2022. The increase in passenger travel is a good indication for the aviation sector, which has been battling to recover from the COVID-19 pandemic's impact. Domestic and international passenger traffic climbed by 27.5% and 34.2%, respectively, according to the study. In terms of passenger traffic, the top five busiest airports were Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, Dallas-Fort Worth International Airport, Denver International Airport, and Chicago O'Hare International Airport.
With Inputs from atlas-network
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Air India to Sport New Cabin Crew Uniform, Interiors
Abhishek Nayar
17 Apr 2023
Air India, India's national airline, is poised to showcase new cabin décor and uniforms for its cabin crew, according to CEO Campbell Wilson in an internal message. The airline has been working on this project for some time, and the new appearance is set to debut soon.
The Statement
The CEO stated that the designs were "progressing nicely" and that arrangements for their "reveals" were being finalized. Mr. Wilson has stated that while the renowned Maharajah may continue to be a part of the airline's mascot, it may also feature a "she."
Interior Remodeling: A Fresh Look
Air India intends to completely redesign its interiors, from the seats to the carpets and lighting. The airline has been working with a design team to provide its passengers a modern, sleek, and comfy appearance. The renovated interiors will have a modern feel, with an emphasis on comfort and convenience.
Fresh Uniforms: A Distinctive Look
Air India also intends to introduce new uniforms for its cabin personnel. A team of famous fashion designers designed the new uniforms, which are meant to be fashionable, comfortable, and useful.
The Implications of the Improvements
The airline's move to remodel its décor and uniforms comes at a critical juncture. The Indian government is presently in the process of privatization the airline, and the new appearance of Air India is considered a key step in enticing possible purchasers.
Prior Issues
While most COVID-19 cutbacks were restored for most employees in September, pilots reported they continued to witness certain cuts, such as the minimum pay equivalent of 70 hours being decreased to 20 hours.
Conclusion
Air India's new décor and uniforms are designed to give customers a contemporary and pleasant flying experience. The airline has worked hard to make its cabins seem sleek and modern, with an emphasis on comfort and convenience. The new uniforms will also be fashionable and utilitarian, with a nod to Indian culture.
With Inputs from TheHindu
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