AirAsia India fails to get an international permit; halts UDAN international

Tata group-owned AirAsia India's failure to get approval for international flights has hurt UDAN, the Indian government’s regional air connectivity project that also aims to link cities in Northeast India and Odisha to places abroad.

Sources said the civil aviation ministry is waiting for the low-cost airline to come under the full ownership of Tata Sons and become part of Air India, the former state-owned carrier now owned by the private conglomerate, before allowing it to operate international flights.

Tata owns an 84% stake in AirAsia India and it is understood that the group will complete the process of buying the rest of the stake by July’s end.

AirAsia India fails to get an international permit; halts UDAN international

According to the Airport Authority of India’s rules, an operator qualified as a 'designated airline' was eligible to bid for UDAN international routes in March. Under UDAN international, state governments offer 100% subsidies to airlines.

ALSO READ - AirAsia India receives approval for its first international flight in 8 years

AirAsia India won bids to operate flights on eight international routes, including destinations from Bhubaneswar, as it sought the lowest subsidy.

AirAsia India meets the condition of having 20 aircraft to fly internationally, but it has been unable to get approval as the Central Bureau of Investigation (CBI) has filed a case against top executives of AirAsia Berhad, which holds a 14% stake in the airline, for allegedly lobbying the government for overseas flight permits and violating rules that prevent foreign carriers from controlling Indian operators.

The CBI, in 2018, booked AirAsia Berhad CEO Tony Fernandes along with others for allegedly trying to bribe government officials for easing rules for operating international flights.

The CBI, in 2018, booked AirAsia Berhad CEO Tony Fernandes, deputy CEO Bo Lingam, and former Tata Trust managing trustee R Venkataramanan for allegedly trying to bribe government officials for easing rules for operating international flights.

Sources said that AirAsia India, for UDAN international, has sought significantly lower subsidies than SpiceJet and IndiGo, which were the second- and third-lowest bidders. State governments want airlines to seek the lowest subsidy.

The first round of the international UDAN failed to generate much response as state governments were not amenable to bearing the subsidy burden.

AirAsia India, for UDAN international, has sought significantly lower subsidies than SpiceJet and IndiGo, which were the second- and third-lowest bidders.

“When the bidding was completed in March, AirAsia India already had 20 aircraft and was a designated airline of India which made it eligible to bid for the routes. However, the legal arm of the Ministry of Civil Aviation objected that the airline has not been permitted to operate flights on international routes and hence ineligible to operate the flights,” said a person aware of the development.

ALSO READ - Air India gets CCI’s approval to acquire the entire stake in AirAsia India

Tata group is merging AirAsia India into a subsidiary of Air India Express. It has approval from the anti-trust regulator Competition Commission of India (CCI) and waiting for one from the National Company Law Tribunal.

Tata group is merging AirAsia India into a subsidiary of Air India Express.

Simultaneously, after acquiring an 84% stake in AirAsia India in 2020, the group is in the final stages of acquiring the remaining 16% stake.

“Legal approval was sought and it was decided that till the time AirAsia Berhad has any stake in the airline, it will not be permitted to operate international flights as there is an ongoing CBI investigation against the officials of the Malaysian parent."

"After it becomes a subsidiary of Air India group and Tata group owns 100% stake, it will be permitted for international flying,” a government official said.

The first round of the international UDAN failed to generate much response as state governments were not amenable to bearing the subsidy burden.

Assam, Odisha, Tripura, and Manipur participated in the international UDAN and offered to provide subsidies for connecting Guwahati, Bhubaneswar, Agartala, and Imphal to multiple international destinations.

An official of the Odisha government said that the state was eager to start international flights but Air Asia India has not got the central government’s permission after winning the bid to operate flights from Bhubaneswar. “We are awaiting clarity from the Ministry of Civil Aviation,” the official said.

(With Inputs from Business Standard)

Shares of SpiceJet fell as much as 9.3% on Thursday, July 28 a day after the country's aviation regulator ordered the budget carrier to slash its approved fleet to 50% this summer for eight weeks, citing multiple safety snags.

ALSO READ - DGCA orders SpiceJet to operate only 50% of approved flights

The Director General of Civil Aviation (DGCA) also said that the domestic airline will be subjected to "enhanced surveillance". SpiceJet sought to reassure its customers and said there was "absolutely no impact on its flight operations" after the DGCA order.

Shares of SpiceJet fell 9.3% after DGCA halves capacity; hits 52-week low

DGCA said any increase in the number of flights will be subject to “the airline demonstrating to the satisfaction of DGCA that it has sufficient technical support and financial resources to safely and efficiently undertake such enhanced capacity.”

On March 11, the DGCA approved 4,192 weekly domestic flights of SpiceJet for this year's summer schedule, which ends on October 29. The recent order means the budget carrier will be able to operate not more than 2,096 weekly flights for the next eight weeks.

Earlier this month, the watchdog had issued a warning notice to SpiceJet after a review of incidents, which included a side windshield outer pane that cracked mid-flight and a malfunctioning indicator light.

DGCA approved 4,192 weekly domestic flights of SpiceJet for this year's summer schedule, which ends on October 29.

"SpiceJet is taking measures for arresting the trend of incidents. However, the airline needs to sustain these efforts for safe and reliable air transport service," the DGCA said in its order.

ALSO READ - DGCA finds no major safety violations during 53 spot checks on 48 SpiceJet aircraft

The move comes within days after the aviation ministry told the parliament that the DGCA did not find "any major significant finding or safety violation" in SpiceJet.

Following the update, the scrip hit its 52-week low of INR 34.60 on BSE. At 10:05 AM, it hovered around INR 35.65, 7.05% below its previous close of INR 38.30.

The stock has given a negative 3-year return of 73.94% as compared to a 56.64% rise seen in the Nifty Smallcap 100. SpiceJet is a budget airline with a market cap of INR 2,142.40 crore.

SpiceJet is a budget airline with a market cap of INR 2,142.40 crore.

SpiceJet shares, which touched on Thursday, July 28 their lowest levels since March 2020, are down about 44% so far this year.

"Domestic air travel demand tends to be very weak in September quarter, and thus, fares tend to drop on a quarter-on-quarter basis. This year, with SpiceJet's capacity curtailed, the industry should be able to support better pricing," Morgan Stanley analysts said in a note.

The shares of InterGlobe Aviation, the operator of India's biggest airline IndiGo, rose as much as 2.9%. Indian airlines, which are on the cusp of recovery after being choked by travel closures during the peak Covid-19 pandemic, have also been affected by higher aviation turbine fuel costs.

India is at the cusp of explosive growth in air travel both domestically and internationally within Asia and other international destinations. Market watchers will note all airlines in India gradually shifting their focus and placing orders for long-range/wide-body aircraft.

Initiatives by the Government of India - UDAN - Regional Connectivity Scheme are designed to make air travel convenient, accessible and cost-effective for people. These new schemes are acting as an impetus for airlines and several large orders with manufacturers have been placed and will continue to be placed.

Civil Aviation Minister Jyotiraditya Scindia said in Parliament on July 28 that there is no shortage of pilots in India at the moment.

As the skies get more crowded and business travel rises in lockstep with the resumption of normal office routines across India, flying schools and crew training academies are getting a fresh lease of life, too.

As things now stand, the sector is staring at a huge shortage of trained, type-rated pilots and ramp engineers.

"There is a huge demand for trained commercial pilots in India right now amid a pick-up in air travel, Regional airlines such as FlyBig, new airlines such as Akasa, addition of new routes by airlines, and post-pandemic pent-up demand will lead to the need for more pilots."Captain Mihir Bhagvati, president, Bombay Flying Club.

Various estimates showed that about 400-600 commercial pilots graduate every year from various flying training schools in India, whereas the country would require 1,500-2,000 pilots per year to meet the rising demand for air travel. That will mean the industry will need about 10,000 pilots over the next five years in a 'business-as-usual' situation.

Demand for more flight schools soars.

"The number of pilots receiving their Commercial Pilot Licences (CPL) in India is increasing every year, the DGCA issued 862 CPLs in 2021, an all-time high.Jyotiraditya Scindia.

Speaking about licenses issued to commercial pilots by the training academy after 2010, the minister said a total of 7,970 licenses have been issued since, including 699 CPLs issued this year till June 30.

ALSO READ - India needs 1,000 commercial pilots every year

The automation system that helps Mumbai air traffic control handle a large volume of flights land, take off and overfly safely and efficiently has been prone to an unhealthy number of glitches and failures in the recent past.

In June alone, the automation system faced more than 70 subsystem problems, stated a letter by the Air Traffic Controllers Guild to its employer, the government-owned Airports Authority of India (AAI), on Wednesday, July 27. AAI provides air traffic services over the Indian airspace.

Among the issues plaguing the Mumbai air traffic control are sudden blackout or freezing of controllers' display screens, systems rebooting repeatedly, server failure, and computerised workstations with keyboards and mouses that don't function properly, among others.

Mumbai Airport's air traffic controllers face numerous glitches due to outdated equipment

The hardware for the current automation system is over 16 years old; while the lifespan of the system is estimated to be 10 years, said the letter. The system was procured keeping in mind the air traffic scenario that existed over two decades ago.

The traffic has increased manifold thereafter and the airspace structure has changed. All the changes are done through software, though, and are being implemented on the same hardware components-comprising workstations, servers, and recorders, among others, that is-which were already working at peak capacity way back in 2010.

The system was procured keeping in mind the air traffic scenario that existed over two decades ago.

"To put it in perspective, we have upgraded our laptops/system from 128 MB RAM to 5-8 GB RAM in the past 20 years. Had we been using the old system, we would not be able to even open a web browser or run a simple program," stated the letter, explaining the issue at hand.

Among the other major failures recorded in the recent past, the controllers' workstation that handles arrival, departure and overflying flights failed about 30-odd times in March and the workstation that handles flights over oceanic airspace failed about 10 times from March 20 and April 05, it said.

In June alone, the automation system faced more than 70 subsystem problems, stated a letter by the Air Traffic Controllers Guild to AAI

Then, between March and April, there were about 25 failures of sub-systems, including the 'flight data processing system'. Remedial action taken included changing the RAM, replacing hardware machines with local spare parts and restarting the sub-system to sustain operations by all means.

The guild letter proposed immediate and long-term solutions. AAI should request Raytheon, the manufacturer, to provide hardware support for the existing system, it said.

For the long term, a tender for a new automation system has already been floated for airports, including Mumbai. But procurement, installation, commissioning, training etc will take at least 4 years, it said.

India's ATC sector is already facing a shortage of air traffic controllers, with the current workforce already falling short by 22% of the sanctioned number

ALSO READ - Shortage of Air Traffic Controllers widens

India’s ATC sector is already facing a shortage of air traffic controllers, with the current workforce already falling short by 22% of the sanctioned number. While airports are sprouting rapidly in the country, new recruitment has not been able to keep pace with the development.

Mumbai airport alone has seen more than 132% increase in passenger traffic in the last six months. Aircraft movement will only increase from now on, which means that fully upgraded ATC equipment is a top priority.

(With Inputs from The Times of India)

Airbus Helicopters has commenced construction of a test centre for CityAirbus NextGen- with a ground-breaking ceremony that saw numerous politicians, business leaders and company representatives in attendance.

Occupying a surface area of 1,000 m2, the new structure will be used for testing systems for electric takeoff and landing vehicles (eVTOLs) and is scheduled to be completed in the first quarter of 2023.

We are investing in the future of electric flight because we believe this technology holds key potential for zero-emission flights. Urban Air Mobility will change the way we travel in cities and beyond and it will be a new pillar of business for Airbus. Donauwörth plays an important role in the development and construction of CityAirbus NextGensaid Wolfgang Schoder, Managing Director of Airbus Helicopters in Germany

The hangar integrates high-voltage equipment and lithium batteries and is designed to undergo testing with the highest safety precautions. Reportedly, all tests needed before CityAirbus NextGen’s maiden flight can be carried out there.

Wolfgang Schoder, Managing Director of Airbus Helicopters in Germany | Airbus

CityAirbus NextGen

Conceived as an idea for an efficient air transport service between strategic locations in urban and suburban environments, the CityAirbus NextGen is an all-electric, four-seat vertical take-off and landing (eVTOL) prototype.

Based on a lift and cruise concept, it boasts an 80-km operational range and a cruise speed of 120 km/h – making it perfectly suited to zero-emission flight operations for a variety of applications in cities and communities.

Airbus

Its unique configuration incorporates innovative design elements that make for a robust and seamless architecture:

 A fixed-wing A V-shaped tail Eight electric-powered propellers as part of its uniquely designed distributed propulsion system

Airbus

Airbus has partnered with Thales and Diehl to develop CityAirbus NextGen's flight control computers and with MagicAll for its electric motor.

Airbus Vahana | Representative | Airbus

With the ground-breaking ceremony for the Urban Air Mobility Test Centre at the Donauwörth site, Airbus Helicopters is laying an important foundation for the further progress of electrically powered aircraft. As the federal government, we welcome the efforts made by industry to develop new propulsion systems and aircraft that will enable climate-neutral aviation in the futuresaid Aerospace Coordinator Anna Christmann

Anna Christmann | Spacewatch Global

Airbus is also working closely with industrial and institutional partners to lead the development of urban air mobility ecosystems, as recently announced with ITA Airways in Italy, or through the launch of the Air Mobility Initiative in Germany.

SOURCE(s)

COVER: Airbus

The Hindustan Aeronautics Ltd (HAL) on Wednesday, July 27 signed a USD 100-million contract with the US-based Honeywell for 88 engines to power the indigenous HTT-40 basic trainer aircraft, even as the state-owned plane manufacturer eyes a contract from the Indian Air Force for such aircraft.

The contract was exchanged by Eric Walters, Senior Director OE Sales, Honeywell Defense & Space, and B Krishna Kumar, Executive Director (E & IMGT) in the presence of R Madhavan, Chairman & Managing Director, HAL.

“HAL has successfully developed the basic trainer aircraft (HTT-40) to address the training requirements of IAF. There is a potential requirement of 70 aircraft. The contract with IAF for the same is in an advanced stage of approval."R Madhavan, Chairman, Hindustan Aeronautics Ltd

The TPE331-12B engine is a single shaft turboprop engine with an integral inlet and gearbox, two-stage centrifugal compressor, power turbine, gearbox, three-stage axial turbine and turbine exhaust diffuser.

Besides, it displays reliable power and outstanding operational characteristics. The HTT-40 prototypes are powered by TPE331-12B engines and have been serving well since 2014.

“We are proud of our four-decade-long partnership with HAL and happy to extend our relationship with this new order.The TPE331-12 family of engines has proven itself in operations all over the world, and we have committed to support and deliver engines as well as kits within the stipulated schedule to meet the requirements of the IAF. Honeywell is committed to support export of HTT-40 aircraft in coming years along with other engine programmes which are currently on radar. This contract would pave the way for future collaboration between HAL and Honeywell."Eric Walters, Senior Director, Sales, Honeywell Defense & Space

The central government has imposed a phased ban on the import of 310 different types of weapons and systems to boost self-reliance in the defence manufacturing sector, and basic trainers feature on that list.

Rookie pilots in the IAF go through a three-stage training process involving the Pilatus PC-7 MkII basic trainers, Surya Kiran trainers and finally the British-origin Hawk advanced jet trainers before they can fly fighter jets.

HAL signs contract with Honeywell for 88 engines for HTT-40 basic trainer aircraft

In August 2020, the defence ministry gave a go-ahead for the purchase of indigenous basic trainer aircraft for IAF to provide a push to the government’s Atmanirbhar Bharat’ (self-reliant India) vision.

The defence acquisition council (DAC) accorded its acceptance of necessity (AoN) to buy 106 HTT-40 aircraft from HAL. Under India’s defence procurement rules, an AoN by the council is the first step toward buying military hardware. The IAF plans to order the basic trainers in two batches – 70 and 36.

The IAF, which currently imparts basic training to army and navy pilots in addition to its own, calculates that it needs 181 basic trainer aircraft.

After building and inducting 72 HTT-40s in IAF training schools, there will still be a requirement for 34 more basic trainers. (Image - Ajai Shukla)

It has already bought 75 Pilatus PC-7 Mark-II trainers. After building and inducting 72 HTT-40s in IAF training schools, there will still be a requirement for 34 more basic trainers. If the HTT-40 performs well, that order will also go to HAL.

The HTT-40 aircraft has undergone a string of elaborate tests at HAL to demonstrate that it is safe for rookie pilots and meets the IAF’s exacting standards for trainer planes.

HAL and Honeywell are exploring other areas such as 1MW Turbo Generators, manufacturing, Repair & Overhaul of TPE 331-10GP / 12JR engines for variants of Dornier.

Cover Image - Ajai Shukla