AirAsia India takes short-term loans of INR 630 crore to reduce its debt burden

AirAsia India, the airline subsidiary of AirAsia Group, has availed of short-term loans worth Rs 630 crore. The company said that it will use the funds to pay off its dues and reduce its debt burden. The airline had been under pressure for several years now with high-interest costs as well as losses and low margins.

AirAsia India has availed of 12-month loans from the private sector to finance its business operations. The airline will use these funds to further strengthen its balance sheet and improve financial performance.

The airline recently completed 10 years since launch, which is considered one of its key milestones when it comes to improving customer experience with improved infrastructure and services.

The airline has availed of 12-month loans from the private sector.

AirAsia India was launched in 2014 as a joint venture between the Tata Group and AirAsia Investment Limited. The Tatas began with a 51% equity share in the company, which was further raised to 83.67% in 2020.

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The airline has been under pressure for several years now with high-interest costs as well as losses and low margins. It is looking to reduce its debt burden by taking short-term loans of Rs 630 crore, which comes at a time when AirAsia India is looking to reduce its debt burden.

Multiple loans were given to the airline, according to the report Standard Chartered Bank gave a loan of USD 24.5 million in short-term loan and USD 3.6 million in overdraft facility last month, while Induslnd Bank gave USD 24.5 million. Tata Capital too gave USD 24.5 million in April last year.

The airline, which is in the process of merging with Air India Express, has never turned a profit since it began operations in 2014.

AirAsia India has been under pressure for several years now, as it faces tough competition from other low-cost carriers and high fuel costs. Its financial performance has deteriorated in recent months, with losses widening.

Currently, Air Asia India has a fleet of 26 active A320s, since it returned 7 A320s to Air Asia Berhad. It had posted an annual loss of USD 193 million, almost double the previous year and a revenue of USD 171 million, because of its shrinking operations.

The airline has been under pressure for several years now with high-interest costs as well as losses and low margins. The proposed merger of the airline with Air India Express is reportedly being worked upon and, if all goes well, could be complete in about a year.

(With Inputs from Business Standard)

Acknowledging that refunds have been an issue for many airlines during the global pandemic and subsequent recovery, Air India on Monday, September 28 shared details of the steps it has taken to improve its capability and performance in this area.

Like all airlines, Air India was severely impacted by Covid-19 and, regrettably, many customers' travel plans were affected. State-owned Air India was among the vast majority of airlines that did not find it easy to process refunds as it was too low on cash till the Tatas took it over earlier this year.

As one of the many steps undertaken to better meet customer expectations and speedily address legacy issues post-privatisation, Air India placed a high priority on clearing the backlog of refunds, said the airline spokesperson. More than 2.5 lakh cases totalling more than INR 150 crore were processed in just the first few months after privatisation.

Air India clears backlog of over 2.5 lakh Covid refunds worth more than INR 150 crore

During the pandemic, one of the biggest banes for air travellers globally was a huge delay in getting a refund for tickets due to the inability to travel and in some cases not getting their money back at all with some carriers — who did not have funds to do so — asking people to travel at any future date using the same.

Significant effort has since been placed on improving processes and systems and employing technology, to turn around new refund cases at a greater pace. As of today, an eligible refund request lodged on the Air India website will typically be processed by the airline within 2-3 days.

"The processing of a record number of pending refund cases is a testimony to the different teams coming together and addressing a key legacy issue in a comprehensive and effective manner. As part of our transformation, we are committed to bringing a standardised structure across our functions which is critical for us to emerge as one of the world-class airline brands globally. We encourage anyone who believes they have a refund outstanding from Air India to provide details via the Old Pending Refund Link on the home page of our website. This link has been specially created to address if there is any residual old pending refund case."Rajesh Dogra, Chief Customer Experience & Ground Services Officer, Air India

Subsequent processing by banks and/or credit card companies, which is beyond the airline's control, can add another two weeks before customers see the refund (less any fees deducted by the tickets' conditions of sale) in their accounts. In the case of bookings made via travel agents, the refund is made to the travel agent who is then responsible for disbursing to the traveller.

One of the first promises made by the Tata Group after taking over Air India was to improve customer experience. And in another example of keeping customer needs at the centre, the airline has decided to extend the validity of flying returns (FR) points, tier status and member status, and associated benefits under Flying Returns, the airline's 'Frequent Flyer' program, until March 31, 2023.

One of the first promises made by the Tata Group after taking over Air India was to improve customer experience.

ALSO READ - Air India to revamp its fleet by leasing 30 aircraft in the upcoming months

Air India has identified key objectives – network, fleet, customer service, technology, etc. – and has given itself five years to achieve them in a phased manner under a plan called Vihaan.AI, which signifies the dawn of a new era in Sanskrit.

ALSO READ - Air India unveils Vihaan.AI – a comprehensive 5-year transformation plan

During the pandemic, airlines had resorted to an industry practice called 'credit shell', wherein they parked the money from cancelled flight tickets instead of refunding the same to passengers.

Non-stop flights are a new rage, especially on the international circuit. Air India is all set to launch non-stop services between Bengaluru and San Francisco this winter.

Tata Group’s Air India is going to start a twice weekly nonstop between the silicon cities of India and the US this winter schedule, that starts from October-end.

Bengaluru (BLR) will again be directly connected to San Francisco (SFO) from this winter.

The route is in high demand and In fact, some Indian-origin American entrepreneurs raised the issue of a lack of direct connectivity in the sector during Union commerce minister Piyush Goyal’s visit to the West Coast earlier this month.

ALSO READ - SFO – BLR, United Airlines' new daily flight to start by the end of 2022

This would be very beneficial for Air India as United’s proposed BLR-SFO flight keeps getting deferred as western airlines are not overflying Russian airspace — something that India does and makes its highly popular nonstops between India and the west coast viable. For the same reason, American Airlines’ proposed BLR-Seattle nonstop has not been launched yet.

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There has been tremendous demand for a nonstop on this route. Air India is the biggest operator of nonstops between India and the US as it still overflies the Russian airspace. Allowing its flights to take the shortest possible route.

Air India's non-stop flight between Bengaluru and San Francisco will be a huge boost for travellers.

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Air India had recently announced that it will take on lease five Boeing 777-200 long-range (LR) aircraft. These ex-Delta planes will join the Air India fleet between this December and March 2023 to be used to deploy more India-US nonstops. Once that happens, Bengaluru will have a thrice weekly SFO.

With the rise of low-cost carriers in India, air travel has become cheaper and more accessible. Non-stop flights are now becoming a norm for long-haul flights, especially between the US and Asia.

(With Inputs from The Times of India)

A ?208-crore Integrated Cryogenic Engine Manufacturing Facility (ICMF) has been established in Bengaluru by Hindustan Aeronautics Limited (HAL). For the Indian Space Research Organisation (ISRO), it would house the entirety of rocket engine manufacture.

The President of India, Droupadi Murmu will inaugurate HAL’s state-of-the-art Integrated Cryogenic Engine Manufacturing Facility (ICMF) in Bengaluru on September 27, 2022. The facility will cater to the entire Rocket Engine Manufacturing under one roof for ISRO. The facility will boost self-reliance in the manufacturing of Hi-thrust Rocket engines.

https://twitter.com/HALHQBLR/status/1574285116884807680

The facility is set up over an area of 4500 square metres housing over 70 hi-tech equipment and testing facilities for manufacturing Cryogenic (CE20) and Semi-cryogenic (SE2000) Engines of Indian Space Launch Vehicles.

Cryogenic engines are the most widely used engines in launch vehicles. Due to the complex nature of the cryogenic engine, to date, only a few countries — the USA, France, Japan, China and Russia — have mastered the cryogenic technology.

Indian Space Research Organisation (ISRO) is using these engines for its heavy light rockets.

On January five, 2014 India successfully flew GSLV-D5 with a cryogenic engine and became the sixth country in developing cryogenic engines. Cryogenic engines are the most advanced propulsion systems in the aerospace industry. They are used in rockets to leave earth’s atmosphere and achieve a stable acceleration in space.

The Indian Space Research Organisation (ISRO) uses cryogenic engines for its Geostationary Operational Vehicular (GOV). ISRO has also made it mandatory for all private satellite operators to use cryogenic engines from 2020 onwards. There are currently only three manufacturers of cryogenic engines globally - Aerojet, RL10 and LE-5.

HAL sets up a 208-crore rocket engine manufacturing facility.

In 2015, India’s first indigenously designed and developed High Thrust cryogenic rocket engine generating a nominal thrust of 19 tonnes was successfully endurance tested for 800 seconds at ISRO’s Propulsion Complex in Mahendragiri. The engine is being used for powering the Cryogenic stage (C25), the upper stage of ISRO’s GSLV MK-III launch vehicle, which is capable of launching four-tonne class satellites.

The Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle (GSLV MK-II), Geosynchronous Satellite Launch Vehicle (GSLV Mk-III), and stage integration for GSLV Mk-II are all manufactured by HAL Aerospace Division.

An MOU was signed with ISRO in 2013 for the establishment of a facility to produce cryogenic engine modules at HAL's Aerospace Division. It was later updated in 2016 to allow for the establishment of the ICMF with an investment of  ?208 crores.

The facility will be inaugurated by the President of India, Droupadi Murmu.

The President’s visit, which is scheduled from September 26 to 28, 2022, will also see the President inaugurating the Mysuru Dasara Festival at Chamundi Hills, Mysuru. On 26th September, President Murmu will attend the felicitation function ‘Poura Sanmana’ organized by the Hubli-Dharwad Municipal Corporation at Hubli.

The inaugural ceremony of the new campus of the Indian Institute of Information Technology (IIT) Dharwad will also take place. The President will return to New Delhi on September 28, 2022.

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Air India, as part of its transformation journey - Vihaan.AI, is bolstering its network and is working towards expansion/upgradation of its fleet. The airline recently announced enhanced connectivity on its International Network with the introduction of 20 new flights to Doha From Chennai, Hyderabad and Mumbai. Now, the airline has opened up bookings on a new International route to Hong Kong.

ALSO READ - Air India unveils Vihaan – a comprehensive 5-year transformation plan

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Starting November 1, Air India will be operating a weekly 1x Direct flight service between Mumbai and Hong Kong. Air India is resuming service on this route (Mumbai - Hong Kong) after a very long time.

Air India to operate direct flights between Mumbai and Hong Kong

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Flight AI 316 will depart Mumbai at 08:00 and arrive in Hong Kong at 16:00. Flight AI 311 will depart Hong Kong at 17:15 and arrive in Mumbai at 21:15. The flight will fly every Tuesday.

Air India will fly its Boeing 787-8 Dreamliner on this route with a travel duration of around 330-390 minutes. Tickets for the route are already available for booking by the guests.

ALSO READ - Air India signs deal to replace 34 old engines

Air India has also signed a definitive sale and lease back agreement with Willis Lease Finance Corporation for 34 CFM56-5B engines installed on its Airbus A320 family fleet. The engines will be covered under Willis Lease’s ConstantThrust program and are the first ConstantThrust sale and leaseback agreement for aircraft engines by any Indian carrier.

Under this transaction, Willis Lease will purchase from Air India 34 engines powering 13 Airbus A321 aircraft and 4 Airbus A320 aircraft. 

Air India to start new flights to Qatar and Dubai as part of its winter schedule.

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Air India is seeking to take advantage of an expected increase in passenger traffic due to the FIFA World Cup tournament that will take place in November-December in Doha. The airline is also looking to add six weekly flights between India and Qatar, between Delhi, Mumbai, and Doha, depending on available slots.

As part of plans to increase its presence on international routes, Air India is to start new flights to Qatar and Dubai as part of its winter schedule. The airline plans to add four weekly flights from Kolkata, Mumbai and Delhi to Dubai.

ALSO READ - Cathay Pacific launches direct flight between Bengaluru – Hong kong

Recently, Cathay Pacific announced direct flights between Bengaluru and Hong Kong with two weekly non-stop flights starting October 11. Passengers travelling from the IT hub of India to Hong Kong will get benefitted from the launch of this new non-stop route.

Air Works - the nation’s largest independent MRO and aviation services and solutions major were adjudged the winner of the coveted Marketing Award at this year’s MRO Asia-Pacific Awards 2022, registering Indian MRO presence at this acclaimed, annual regional event, organized by Aviation Week, which is one of the world’s foremost authentic voices in the aviation & aerospace universe.

This is Air Works Group’s second consecutive Marketing win at the regional Awards, having also won the Marketing Campaign of the Year Award, 2020 against stiff regional competition from leading MROs and aviation engineering companies such as SIA Engineering Company and ST Engineering, among others.

The awards were announced at a glittering ceremony in Singapore, on the eve of Aviation Week’s MRO Asia-Pacific industry event. With this win, Air Works joined the league of select aviation players who have won such honours multiple consecutive times.

Air Works wins the Marketing Campaign Award at MRO Aisa-Pacific Awards 2022

The award and more significantly, its recognition, represents yet another milestone for the Indian enterprise that has successfully navigated numerous aviation cycles in its more than seven decades of operations, to emerge as the predominant player in the Indian aviation engineering and maintenance domain.

“Bagging the ‘Marketing Campaign of the Year Award’ for two consecutive years reflects the strength of our brand’s value, manifested in our business and delivery capabilities. Such global recognitions not only heighten the confidence of our customers and partners but also illustrate that Indian MRO firms are increasingly coming of age, and ready to compete and deliver on global standards, thereby laying the foundation for the eventual success of the entire Indian MRO ecosystem at a regional level”.D Anand Bhaskar, Managing Director & CEO, Air Works

Regional recognitions such as this Marketing Campaign of the Year Award don’t just vindicate Air Worksposition as one of the leading MRO players in the Asia-Pacific [APAC] region but also emphasises the increasing role and focus on Marketing and Brand building that is now beginning to be seen in the Indian aviation & MRO space, hitherto not witnessed in recent years.

The growing focus on marketing in the aviation aftermarket, primarily B2B, also indicates the heightened activity in a fast-evolving market with intensifying competition, rising capabilities, improving quality benchmarks and a structured and organized way of working – all indicators of a market that’s coming of age and en route to becoming an MRO Hub.

“It’s a milestone moment for us in Air Works and I would like to offer our sincere thanks to the aviationindustry’s illustrious jury for adjudging Air Works as the winner of the regional marketing honour once again this year. The award ratifies our ongoing transformation and our investment in our Brand Refresh campaign, which is about revitalizing Air Works not only by adding some bold and vibrant colors to our palette reflecting our ambitions for the regional aviation & aerospace market along its innumerable opportunities, but subsequently bringing those instances to life, via business articulations using a comprehensive communications the campaign, that evokes an honest pride in being an Air Works citizen. India is already the third largest civil aviation market in the world and wins of such repute have the potential to galvanize the entire Indian MRO sector to realize its true potential on the global stage”.Gaurav Sahni, AVP and Head, Brand & Communications, Air Works

Air Works has continued to add milestones in its organizational and business transformation journey. Earlier this year, the Group was honoured with dual awards including the “Best MRO Service Provider” by the Ministry of Civil Aviation, India. Air Works also received the “Best MRO Achievement Award 2021” at ASSOCHAM's 13th Annual Conference cum Civil Aviation and Cargo Awards in March this year.

ALSO READ - Air Works receives EASA Part 145 approval for twin-hangar MRO facility at Cochin Airport

Air Works’ brand-new, twin hangar, narrow body maintenance facility at Kochi, Kerala recently received EASA certification. The company has also been reinventing itself by bringing digitization to the forefront - not just in operations but also in analytics-based decision making, using its innovative and award-winning solution mSights – Maintenance Insights.

Air Works also uses its proprietary ERP Platform – Titan – that is conducive to MRO operations and has been recognized for deploying smart & innovative technologies such as AI & RFID for business transformation and efficiencies.

Air Works’ brand-new, twin hangar, narrow body maintenance facility at Kochi, Kerala recently received EASA certification

The Group is not only India’s largest provider of Line Maintenance services to global airlines, but also is certified to maintain more than 50 types of aircraft, making it also the most diversified MRO in the country with a pan-India presence in 27 locations with more than 1300 employees.

It also provides commercial aircraft asset management services and aircraft finishing services apart from MRO-related offerings. Its customers include both civil (fixed wing + rotary wing) and military customers apart from global OEMs, commercial airlines, business aviation companies, and leading global Lessors.

Established in 1951, Air Works Group is India’s most extensive and highly diversified independent MRO with the largest pan-India network presence across 27 cities.

With this win, Air Works joined the league of select aviation players who have won such honours multiple consecutive times.

It is the MRO partner to global aviation OEMs, aircraft owners/operators (including fixed-wing & rotary-wing), lessors, airlines, and the Indian Defense Services, offering a host of services including MRO and heavy checks, line maintenance, cabin interior solutions, exterior finishing and painting, avionics upgrades, integrations and retrofits, end-of-lease/ redelivery checks, maintenance training (CAR 147), and asset management services to domestic and international clients.

Specialized services such as avionics, component repairs, and asset management services are offered via Group companies – SA Air Works and Acumen Aviation. Air Works undertakes base maintenance for ATR 42/72, A320, and B737 family of aircraft as well as medium and large business jets at its EASA and DGCA-certified facilities including Mumbai, Delhi, Hosur, and Kochi, supported by duly certified, in-house shops.

The Company also undertakes modification and assembly of rotary-wing aircraft and is an Authorized Service Centre (ASC) for Bell and Leonardo helicopters. Air Works enjoys an impeccable reputation in the industry for proven capabilities, outstanding workmanship, quality, and an exceptional safety orientation.