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

After almost eight years since Tata Group’s AirAsia India (AAIPL) began operations, it has received a nod to carry out its first international flight this month. Tata Group owns an 83.6% stake in the low-cost airline and is expected to acquire the remaining 16.4% from Malaysian AirAsia Berhad.

AirAsia India will be operating a non-scheduled cargo flight on the Kochi-Dubai-Kochi route. The airline operated its first flight back in June 2014 and reached a fleet size of 20 aircraft in December 2018.

As per a report by Times of India, the airline’s first flight was operated in June 2014 and it achieved a fleet size of 20 aircraft in December 2018.

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

Then, the airline met the 0/20 rule — no minimum requirement on the number of years in operation and at least 20 aircraft in fleet — to fly abroad. However, several cases over the airline’s effective control prevented the Centre from giving that clearance. 

Furthermore, AirAsia India had announced recently that its passengers can now pre-book lounge facilities on its website and mobile app. The airline offers these services across 13 airports including at its all four hubs, AirAsia India said in a statement.

AirAsia India had announced that its passengers can now pre-book lounge facilities on its website and mobile app.

The services are available at Bengaluru, Bhubaneswar, Chennai, Kochi, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Kolkata, Mumbai, Pune and Ranchi, it said. Airport lounge services can be purchased at a nominal fee, starting at Rs 800, while making a flight booking or even post-booking, AirAsia India said.

"Extending easy access to airport lounges and offering these facilities to our guests enhances and ensures a more holistic and pleasurable travel experience. As an innovative, digital-first brand, we have taken every opportunity to differentiate our service experience with distinctive offerings."Siddhartha Butalia, Chief Marketing Officer, AirAsia India

The airport lounge services allow passengers avail access to amenities like high-speed Wi-Fi, hot food and beverages, snacks, newspapers and magazines, charging stations for laptops and mobiles, wash and change facilities, business centre facilities and lounge bars, the airline said.

The government on Wednesday, February 9 banned the import of foreign drones with certain exceptions as part of efforts to promote the domestic manufacturing of drones in the country.

The import of drones for R&D, defence and security purposes have been exempted from the ban but such imports will require due clearances.

"Import of drone components, however, shall not require any approvals," the civil aviation ministry said in a release. The Directorate General of Foreign Trade (DGFT) under the commerce and industry ministry has issued a notification banning the import of foreign drones.

India bans import of foreign drones to boost domestic manufacturing

"Import policy for drones in CBU (Completely Built-Up)/CKD (Completely Knocked Down)/SKD (Semi Knocked Down ) form... is prohibited with exceptions provided for R and D, defence and security purposes," DGFT said.

Import of drones by government entities, educational institutions recognised by central or state government, the government recognised R&D entities and drone manufacturers for R&D purposes will be allowed in CBU, SKD or CKD form. This will be subject to import authorisation issued by DGFT in consultation with concerned line ministries.

Import of drones for defence and security purposes will be allowed in CBU, SKD or CKD form subject to import authorisation issued by DGFT in consultation with concerned line ministries.

Import of drones for defence and security purposes will be allowed

The civil aviation ministry said that to promote Made in India drones, the import of foreign drones has been prohibited with effect from February 9, 2022. The ministry came out with liberalised drone rules in August 2021.

After the rules, the ministry issued the drone airspace map and PLI scheme in September 2021, the UTM policy framework in October 2021. Besides, the drone certification scheme and single window DigitalSky Platform were put in place last month. Union Cabinet cleared a production-linked incentive (PLI) scheme to make India a drone hub by 2030.

The PLI scheme provides up to a 20% incentive to manufacturers of drones and drone components. It came close on the heels of the recent liberalisation of rules, which has made owning and operating drones easier.

Union Cabinet cleared a production-linked incentive (PLI) scheme to make India a drone hub by 2030.

The government allocated INR 120 crore for the scheme and it will be spread over three years. This amount is nearly double the combined turnover of all domestic drone manufacturers in FY21, the ministry of civil aviation had said in a press release.

The government, in turn, expects to generate investments of up to or more than INR 5,000 crore from the sector. The target, set for the financial year 2024, also includes the establishment of over 10,000 jobs in the sector in India.

SpiceJet has offered to pay INR 600 crore in cash in a share transfer case with its former promoter Kalanithi Maran and his firm KAL Airways for a full and final settlement of all disputes, the airline said in a statement.

Maran, the owner of Sun Group and former promoter of SpiceJet, had previously moved to Delhi High Court, seeking attachment of SpiceJet promoter Ajay Singh’s shareholding after the airline failed to deposit INR 243 crore in his name.

The case, which goes back to 2017, is related to a dispute arising out of non-issuance of warrants in favour of Maran, after the transfer of ownership to Ajay Singh — the low-cost carrier’s current promoter.

SpiceJet has offered to pay INR 600 crore in cash in a share transfer case with its former promoter

SpiceJet, which made the offer during a Supreme court hearing, said out of the principal amount of INR 578 crore awarded in arbitration, the airline has already paid INR 308 crore in cash and deposited a bank guarantee of INR 270 crore.

Maran had sought enforcement of payment of the due amount citing SpiceJet's precarious financial status, citing a winding-up order passed against the airline by the Madras High Court. Maran's counsels expressed fears of being left with a "paper decree" and unpaid dues if SpiceJet folds up due to its huge debt.

Maran's lawyers contended that SpiceJet was aiming at raising to INR 2,500 crore through an IPO to boost its working capital, citing reports that SpiceJet had a consolidated net loss of INR 998 crore for FY21, which had risen from INR 936.57 crore suffered by the airline in 2021.

In 2010, Ajay Singh sold a majority stake in the airline to Maran for about USD 98 million.

The court has advised the other side to consider the proposal of SpiceJet and has listed the matter on February 14. Earlier an arbitration tribunal consisting of three retired judges from the Supreme Court had rejected the damages claim of Kalanithi Maran and KAL Airways against SpiceJet.

The legal dispute dates back to 2015 when Maran claimed that SpiceJet failed to issue warrants despite the transfer of 58.46% stake held by Maran and his KAL Airways to co-founder Ajay Singh for just INR 2.

Shares of SpiceJet rise over 5.6%, the biggest intraday gain in nearly two weeks.

To and fro ownership

In 2010, Singh sold a majority stake in the airline to Maran for about USD 98 million. Immediately after Maran’s takeover, Spicejet reported profits in 2010 and 2011 after a decade of losses. With Maran at the helm, Spicejet aggressively expanded its fleet and started flying more routes, using heavy discounts to lure passengers.

Kalanithi Maran, the owner of Sun Group and former promoter of SpiceJet, had previously moved to Delhi High Court.

Although this strategy had some short-term benefits, Spicejet was bleeding cash. Singh came to the airline’s rescue in 2015 by taking a 58% stake. The airline was hit particularly hard during the pandemic, especially after the imposition of state-wide lockdowns that decimated domestic travel. Spicejet mostly relied on its cargo unit – SpiceXpress – to offset some of the losses.

In its latest quarter, the carrier’s loss widened to USD 75.5 million, compared to the same period a year earlier, with higher fuel costs hurting margins. SpiceXpress, which reported a 5% quarter-on-quarter growth, was the only bright spot.

SpiceJet's financial woes

The legal dispute with its former promoter is not SpiceJet's only problem. The airline is facing action from financial firm Credit Suisse AG.

Credit Suisse AG has alleged that SpiceJet failed to honour its commitment to pay the bills for over USD 24 million raised by it towards maintenance, repairing, and overhauling of the aircraft engines and components.

The airline is facing action from financial firm Credit Suisse AG.

The Swiss financial firm had moved Madras High Court in this matter. The high court, in its verdict, ordered the winding up of the airlines and directed the official liquidator attached to the high court to take over the assets.

SpiceJet, for now, has managed to get a three weeks' stay from the Supreme Court to resolve its financial dispute with Credit Suisse AG.

ALSO READ - SC to SpiceJet – “We wonder if you want to run an airline”, gives three weeks to resolve the dispute

An Alliance Air flight from Mumbai to Bhuj, carrying 70 passengers, flew without engine cover that was later retrieved from the runway at the city airport on Wednesday, February 9 prompting aviation regulator DGCA to start a probe into the incident, according to an official.

The ATR aircraft landed safely at Bhuj in Gujarat. Alliance Air said that it has initiated a probe into the incident.

The incident happened on Wednesday, February 9 morning and was brought to the notice of airport authorities by a Mumbai Air Traffic Controller (ATC). Subsequently, the Directorate General of Civil Aviation (DGCA) started an investigation into the incident.

DGCA begins investigation after Alliance Air's ATR aircraft departs without engine cover

"Mumbai ATC informed the airport that Alliance Air ATR aircraft, operating flight 91-625 (Mumbai-Bhuj) took off without the left engine cowling (cover)," the official said. Later, the airline's engineering team reached the site and retrieved the engine cover from the runway.

During the operation of Alliance Air flight 9I-625 from Mumbai to Bhuj on February 9, the panel of the engine cowl was found on the runway post take off, Alliance Air said in a statement.

"We have taken strict note of the incident and a thorough investigation has been initiated. The findings of the same shall be shared with the regulatory authorities and we shall ensure that all required corrective actions are put in place," the government-owned airline said.

Flying without engine cowling may have an aerodynamic effect leading to marginal deterioration in the aircraft's performance.

It also said that "we are grateful that all passengers and crew onboard the flight safely landed and there was no damage to the aircraft due to this unfortunate incident. Expressing "regret" at the "unfortunate" incident, Alliance Air said, it follows laid down policies/ procedures as per the regulatory authorities.

The airline has strict checks in place both pre and post-flight operations to ensure the complete safety of its passengers and crew, Alliance Air said in the statement.

Flying without engine cowling may have an aerodynamic effect leading to marginal deterioration in the aircraft's performance, the official said. No one has been grounded so far but appropriate action will be taken after DGCA receives the preliminary report.

The Incident was brought to the notice of airport authorities by a Mumbai Air Traffic Controller.

Besides, it could have an impact on engine components as well because of the exposure to the airflow, the official said, adding that, however, in this case, the aircraft landed safely at the destination.

The Mumbai Air Traffic Control (ATC) had contacted the pilots of the Alliance Air flight, which flew from Mumbai to Bhuj without its engine cover, whether an object had fallen off the aircraft after its take-off from the airport in Maharashtra capital, an official here said.

As per the preliminary reports, the pilots did not realise that the cowl (cover) of one of the engines had fallen on the runway in Mumbai as they told the ATC that everything was fine, the official said.

"After spotting some object on the runway, the Mumbai ATC contacted the pilots of the Bhuj-bound flight and asked if something had fallen off the aircraft. However, the pilots said everything was alright. Later, the flight landed at Bhuj without any trouble. When it underwent routine supervision before the next flight, the maintenance staff learnt about the missing engine cowl.While 66 passengers arrived in the flight in the morning, 61 passengers were supposed to take the same flight to Mumbai a few hours later. However, upon learning about the missing engine cover, the airline cancelled the return flight and began the maintenance work."Navneet Kumar Gupta, Airport Director, Bhuj Airport

The propeller-powered aircraft was carrying 66 passengers. It flew to Bhuj town from Mumbai without its engine cowl, a removable metal covering for the engine, which fell on the Mumbai airport's runway during take-off, he said.

"Luckily, all the passengers and crew members are safe as the aircraft, which runs on propeller engines, landed without any trouble at the Bhuj airport," said Gupta. After the incident, Alliance Air cancelled its return trip to Mumbai, he added.

The airport director said that as per the primary reports he has received, the pilots were not aware that a section of the engine's cowl had fallen during the take-off.

The Delhi High Court issued a notice to the Directorate General of Civil Aviation (DGCA) on a petition challenging the Civil Aviation Requirement (CAR).

The petition has been moved by the pilot body, the India Pilots' Guild, and others. CAR governs the ''Procedure for examination of the aviation personnel for consumption of Psychoactive Substances.

Justice V Kameswar Rao issued notice to DGCA on the petition which sought a stay on the CAR issued by the respondent. The court has listed the matter for hearing on March 28, 2022. The petition has challenged the CAR issued by DGCA claiming it to be arbitrary and unconstitutional.

Delhi High Court issues notice to DGCA in response to Pilot body's petition

The petition claimed that CAR has been issued by the DGCA in the arbitrary exercise of the power conferred by Rule 133A of the Aircraft Rules 1937 by issuing the impugned CAR without taking into consideration the suggestions and feedback of the petitioner, thus, vitiating the process of effective consultation in violation of the fundamental rights of the petitioners.

The petition claimed that CAR to be effective from January 31, 2022, suffers from major infirmities and is littered with arbitrariness.

"DGCA has failed to scientifically address the issues and shortcomings of the process. The impugned CAR has been issued without application of mind and without paying heed to the global guidelines and standards," the petition read.

It has been further claimed that the impugned CAR, therefore, if implemented, in its current form, will lead to chaos and infringement of the fundamental rights of the petitioners and others covered under the ambit of the CAR.

The Delhi High Court has dismissed petitions by the Executive Pilots Association and All India Aircraft Engineers Association challenging the reduction in allowances of Air India employees.

Justice V Kameswar Rao said that no case for discrimination was made out in the case and "rather there is a justifiable ground in reducing the allowances in the manner they have done for the pilots and engineers".

The judge stated that it was for the central government and Air India to determine what ought to be the appropriate reduction in allowances after taking into account all the relevant considerations and as long as the reduction is not palpably arbitrary, the scope of judicial review is very limited.

In its order passed on February 7, the court took into account the respondent's stand that the aviation industry was the worst-hit industry during the COVID-19 pandemic and that Air India accumulated losses of about INR 50,000 crores while suffering a cash deficit of INR 250 crores a month.

The court said senior advocates appearing in the matter have not disputed the power of the respondents to rationalise the allowances. "If that be so, there can also be no dispute that situation as was existing, required the respondents to take this drastic decision. The situation justified the rationalisation measures," the court stated in its order.

"It is for the respondents themselves to decide by taking into account relevant considerations to determine what ought to be the appropriate reduction in allowances. As long as the reduction is not palpably arbitrary, the scope of judicial review is very limited," it added.

The court observed that reduction in allowance had no impact on the concerned employees' basic pay, HRA, and DA and other categories of employees who faced similar reductions did not approach the court.

The petitioners challenged several orders issued by the aviation ministry in 2020 directing salary cuts of its employees. The Executive Pilots Association had contended that instead of rewarding its member pilots for their courage and role in Vande Bharat Missions, for which they were lauded by the aviation minister, their allowances and flying hours were being reduced.

Vande Bharat Missions were launched to repatriate Indians stranded abroad due to COVID-19 restrictions. The allowances which were reduced are - flying allowances, executive flying allowances, special pay, wide-body allowance, domestic layover allowance, and high-altitude allowance, among others, all of which exclusively affect pilots, the petition had said.