Airbus A380 makes a comeback as travel demand increases amidst high fuel prices

Two years ago, dozens of Airbus A380 set course for storage sites in rural France from the Gulf as the outbreak of COVID-19 accelerated the demise of the world's largest jets.

Now, the iconic European double-decker is gaining a new lease on life as airlines scramble to cope with rising demand and shortages of newer models, though for how long is unclear.

The return of the four-engine behemoth at carriers such as Singapore Airlines and Qantas Airways - and soon at Japan's ANA Holdings and South Korea's Asiana Airlines - comes despite high fuel prices that make operating new-generation two-engine widebodies far cheaper.

Airbus A380 makes a comeback as travel demand increases amidst high oil prices

"Passengers, they love the plane and we have a lot of business class seats on it so it is a very good aircraft to fly on high-demand routes," Korean Air Lines Chief Executive Walter Cho said on the sidelines of an airline industry gathering in Doha. Korean Air plans to have three of its 10 A380s back in service by the end of the year, up from one today.

Strong demand and delays in deliveries of new Boeing 777X airliners have also forced a rethink at Lufthansa. It will decide soon whether to bring back the A380, but has only 14 pilots with current approval to fly them and will train A350 pilots to double up, Chief Executive Carsten Spohr said.

The A380 was once billed by Airbus as a 21st-century cruiseliner with prospects for 1,000 planes in service. But only 242 were built after many carriers opted for smaller twin jets.

ANA Holding will soon revive the superjumbo jet

Analysts say the fleet will never return to pre-pandemic levels. Yet 106 are back in service, according to data firm Cirium, up from a low of just four when the crisis hit in April 2020. There is little second-hand demand for A380s, so airlines often face a choice of flying or scrapping them.

"Keeping aircraft that have been written down … may be the least bad option," said Ascend by Cirium Global Head of Consultancy Rob Morris.

Even so, Air France permanently retired its A380s during the pandemic, Thai Airways and Malaysia Airlines have put them up for sale despite weak demand from buyers and even current operators have sent some to be scrapped.

Lufthansa will decide soon whether to bring back the A380

The downturn prompted many airlines to write down the value of their biggest jets. Having taken that hit, they can fly the jet without expensive depreciation charges - though the price of fuel devoured by the plane's four engines remains a huge headache.

Qantas took an AUD 1.43 billion (USD 995 million) charge in 2020, mainly on the then-grounded A380, but is now bringing back 10 out of 12.

The A380 has also won a reprieve in part because airlines do not yet have enough demand to resume multiple flights on routes like Dubai-London, Singapore-Mumbai and Sydney-Los Angeles.

ALSO READ - Singapore Airlines resume services from Mumbai with Airbus A380 jumbo

A380 superjumbo jet was first delivered to Singapore Airlines on 15 October 2007 and entered service on 25 October.

One airline boss left unsurprised by the partial comeback is Tim Clark, president of Emirates. It is by far the biggest customer after ordering a total of 123 jets for its Dubai hub. Clark fought in vain to persuade Airbus to re-invest in the A380 before the planemaker decided in 2019 to end output.

Emirates is now retrofitting many of these jets with premium-economy seats, a class that's proving popular with leisure travellers with money to burn as the pandemic fades. The airline put tickets for its premium economy seats on sale from June 1 on routes to London, Paris and Sydney.

"Everybody's been struggling with capacity. I've watched it all; people saying that the trend is over. If you want to do that you will regret it. I recall myself saying about the industry-wide shift to smaller jets. And now what happens is you are having to reactivate A380s."Tim Clark, President, Emirates

Emirates' superjumbo fleet has not been immune from the crisis, however, with dozens parked and currently out of use.

Qatar Airways Chief Executive Akbar Al Baker said the A380, which the airline has pulled out of retirement after a dispute with Airbus over newer A350s, remains uneconomic to fly. Whatever its long-term future, the superjumbo is unlikely to fulfil its original vision as a luxury flagship, instead of carving out a humbler role as a workhorse to cover busy periods.

Qatar Airways Chief Executive Akbar Al Baker said the A380 remains uneconomic to fly.

"If you want to ramp up capacity you need to bring back the big bird," said Subhas Menon, director-general of the Association of Asia Pacific Airlines. "They will need that or otherwise they will not be able to meet the expectations of the consumer."

A380 superjumbo jet was first delivered to Singapore Airlines on 15 October 2007 and entered service on 25 October. Production peaked at 30 per year in 2012 and 2014.

However, after the largest customer, Emirates reduced its last order in February 2019, Airbus announced that A380 production would end in 2021. On 16 December 2021, Emirates received its 123rd A380, which was the 251st and last delivered by Airbus. The USD 25 billion investment was not recouped.

On 16 December 2021, Emirates received its 123rd A380, which was the 251st and last delivered by Airbus.

ALSO READ - 14 years after its first flight, Airbus bids final adieu to the A380

The full-length double-deck aircraft has a typical seating for 525 passengers, with a maximum certified capacity of 853 passengers. The quad jet is powered by Engine Alliance GP7200 or Rolls-Royce Trent 900 turbofans providing a range of 8,000 nmi (14,800 km).

As of December 2021, the global A380 fleet had completed more than 800,000 flights over 7.3 million block hours with no fatalities and no hull losses.

(With Inputs from Reuters)

General (Retd.) Dr.V.K. Singh, Minister of State in the Ministry of Civil Aviation in a written reply to Dr Sasmit Patrain in Rajya Sabha yesterday (August 4, 2021) stated the current condition of the Vande Bharat Mission.

The Vande Bharat Mission commenced on 07.05.2020 and has continued ever since. Till 24.07.2021, more than 88,000 inbound flights have been operated and over 71 lakh passengers have returned to India from more than 100 countries. In the same period, more than 87,600 outbound flights have been operated and over 57 lakh passengers have travelled from India to foreign countries.

128 lakh passengers travelled under the Vande Bharat Mission till 24 July 2021.

The flights under the Vande Bharat Mission are operated under strict compliance with the health-related protocols laid down by the Ministry of Health & Family Welfare and the procedures laid down by the Ministry of Civil Aviation. In addition, applicable guidelines/ instructions of the foreign country to/from which the flights are being operated, are also adhered to.

Vande Bharat mission is the massive repatriation operation planned by the Indian government to bring back stranded Indians in different parts of the world in the wake of the coronavirus crisis. Following the incident, another aircraft was deployed and another set of crew was sent for the scheduled flight operation.

More Scheduled Flights

Apart from Vande Bharat Mission, the Indian government has activated Air Bubble pacts with 27 countries to ease the travel between countries.

Initially, Air India and its subsidiary Air India Express played a key role in the operations. But later on, other air carriers were allowed to take part in the programme.

The Indian airlines will be operating flights to countries like Israel, Singapore, Sri Lanka, Thailand, Italy, among others till October 31, 2021. Although, still many countries haven’t signed bilateral pacts due to coronavirus fears. Instead, they have allowed limited and special evacuation flights under Vande Bharat.

Complete list of Vande Bharat Mission flights (Air India)

The Indian aviation sector, including airlines, airports, and related services, has come under great financial stress on account of the COVID-19 pandemic. It has been hard hit by the curtailment and ever changing restrictions on domestic as well as on international flights. There are several ancillary service sub-sectors linked to aviation that have been impacted by the curbs on flying. These include maintenance operations (MRO), ground handling, catering and inflight sales, all of which are huge employers.

General (Retd.) Dr.V.K. Singh, Minister of State in the Ministry of Civil Aviation in a written reply to Shri M.V. Shreyams Kumar in Rajya Sabha yesterday (August 4, 2021) gave the details of major steps taken by the Government to revive the civil aviation sector during this period, inter alia, are as follows -

Provide support to airlines through various policy measures.Provide airport infrastructure through Airports Authority of India and the private operators.Promotion of private investments in existing and new airports through the PPP routeProvide an efficient Air Navigation System.Through Air Bubble Arrangements, efforts have been made to ensure fair and equitable treatment to our carriers in the international sector.Goods and Services Tax (GST) rate reduced to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services.A conducive aircraft leasing and financing environment has been enabled.Route rationalization in the Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption.Coordination with stakeholders to resolve issues.

The Indian aviation sector, including airlines, airports, and related services, has come under great financial stress on account of the COVID-19 pandemic.

The key outcome of these measures has been that despite the pandemic, domestic operations have reached about 60% of a pre-Covid level. Also, the number of freighters has increased from 7 to 28.

The government has also taken several measures for reforms in the civil aviation sector of the country by providing top-class infrastructure and facilities. Promotion of private investments in existing and new airports through the PPP route has taken place.

Oveview

Holding company of Akasa Airline, SNV aviation has obtained initial NOC (No-objection certificate) from the Directorate General of Civil Aviation (DGCA). Akasa is a proposed low-cost carrier to be based in India planning to commence operations in mid-2022.

The airline will be run by former Jet Airways CEO Vinay Dube. Rakesh Jhunjhunwala is considering plans to invest USD35 million to acquire a 40% stake in the proposed start-up LCC. Mr Jhunjhunwala said the proposed LCC aims to acquire 70 aircraft within the next four years and is targeting aircraft equipped to accommodate approximately 180 passengers.

The upcoming airline intends to offer flights across India starting in the summer of 2022 which will strive to be the nation’s most dependable, affordable and greenest airline. Vinay Dube said: “We are extremely happy and grateful to the aviation ministry for their support and the grant of the NOC. We will continue to work with the regulatory authorities on all additional compliances required to successfully launch Akasa Air… we believe having a robust air transportation system is critical for our nation’s progress.”

“It is this belief that has motivated us to create a modern, efficient, quality-conscious airline. Moreover, Akasa Air will serve all Indians regardless of their socio-economic or cultural backgrounds with warmth, inclusiveness and respect. Because at the end of the day, it is these qualities that connect people and cultures and help Indians realise their dreams,” Dube, who has held top positions in Indian carriers like Jet Airways and GoAir, added.

Got NOC, what does it mean ?

An applicant desirous of obtaining an Air Operator Certificate for scheduled passenger air transport services first applies for the No Objection Certificate (NOC). Grant of NOC further implies that the key officials' positions of the Chief Executive Officer (CEO) and/or Chief Financial Officer (CFO) and/or Chief Operating Officer have by default acquired necessary security clearance by the Ministry of Home Affairs (MHA).

The NOC will be valid for three years from the date of issue and shall stand automatically cancelled if Mr Jhunjhunwala's team does not take effective steps to obtain the Scheduled Operator's Permit within this period.

Next step - Initial setup

Before the Akasa's team can acquire any aircraft, they will need to establish the required infrastructure, recruitment and training of manpower, Minimum Equipment List, maintenance schedules and training manual etc. They will have to get the security manual approved by BCAS (Bureau of Civil Aviation Security). The operational and organisational setup should show adequate preparedness to DGCA for conducting scheduled operations on a sustained basis.

Aircraft acquisition

On completion of necessary preparedness, Akasa's management shall apply to the Ministry of Civil Aviation, New Delhi for the issue of permission to import/acquire the aircraft. After such scrutiny as may be considered necessary, the Ministry of Civil Aviation may approve the same.

The permission to import the aircraft will be valid for one year from the date of issue extendable by another 3 months under special circumstances. However, where the aircraft proposed to be imported is a new one with a definite delivery schedule, the validity of the import permit shall be by the delivery schedule.

Multi-engine fixed-wing aircraft with a maximum certified take-off mass of not less than 5,700 kg can only be acquired for the proposed scheduled operations. There are some more restrictions placed by DGCA in terms of aircraft's age, design economic life and pressurisation cycles which will need to comply.

Operational requirements

Akasa's team will have to ensure that all flight operations are conducted within the framework of the Aircraft Act, 1934, the Aircraft Rules, 1937 and all other instructions issued by DGCA from time to time. For safe and regular conduct of flight operations, they must meet the minimum requirements mentioned in the relevant sections of Civil Aviation Requirements (CARs).

Final step - Air operator permit

After the completion of the Pre-Application Phase, the applicant shall submit a Formal application, as per Air Operator Certification Manual to DGCA for the issue of the Air Operator Certificate along with a fee of Rs.20 Lakhs.

If the preparedness status is found satisfactory, an inspection of the facilities of the applicant shall be carried out by a team of officers including a flight operations inspector and an officer from the concerned regional airworthiness office to confirm that the applicant has acquired the capability to undertake planned air transport operations. If considered necessary, the airline may be asked to conduct a proving flight.

After such scrutiny as necessary, DGCA shall issue the operating permit along with the operations specifications for Scheduled Operations stipulating any conditions, if considered necessary. DGCA may grant short term authorisations to commence scheduled operations, if considered necessary, pending compliance with certain requirements.

Taking to the sky

The Air operator Permit (AOP) of Akasa Airlines, if issued will be valid for one year initially. If Akasa can demonstrate a continued capability to conduct the operations authorised under the operating permit, the successive permit issued during renewal will be valid for the next 5 years.

B737 MAX - Anticipated choice of team Akasa

About Akasa

Akasa Air is expected to be based out of Bengaluru and it plans to have a route network close to the city such as Bengaluru-Mumbai, Bengaluru-Chennai, Bengaluru-Hyderabad among others. It will operate on the Ultra Low-Cost Carrier (ULCC) model and plans to have a fleet of 70 narrowbody aircraft in the next 4 years.

Apart from Jhunjhunwala, other investors include Airbnb and Par Capital Management – which has interests in US ULCC Sun Country Airlines. Other big names touted to board Akasa are Aditya Ghosh (Ex-Indigo President/Director), Vinay Dube (Ex-Jet Airways CEO), Praveen Iyer (Ex-Jet Airways VP), Industry veteran Neelu Khatri and many more.

Also read: Airbus in talks with Akasa for aircraft procurement deal

In a bid to chart recovery for international travel, IndiGo will become the first airline in India to launch ‘IATA Travel Pass’ on a trial basis. The ‘IATA Travel Pass’ is a mobile app that helps travellers to store and manage their verified certifications for Covid-19 tests or vaccines. Accordingly, the initiative is expected to help passengers easily and securely manage their travel in line with any government requirements for Covid-19 testing or vaccine information.

indigo

The pilot project will begin in the country from August 20 onwards. The passengers will be able to share the test and vaccination certificates with authorities as well as airlines to facilitate travel, the airline said in a statement on Tuesday. 

According to IATA's website, travellers will not be able to use it unless their airline is part of a trial. If your airline is participating in one of these trials, they can provide you with instructions on how to use IATA Travel Pass.iata

Ronojoy Dutta, Chief Executive Officer, IndiGo said, “This initiative is a significant step to prepare for a new normal, especially with regards to international travel. Today, most countries have implemented protocols for travellers across the globe and this ‘IATA Travel Pass’ will simplify and digitise the requisite passenger information for respective countries.” “We are certain that our collaboration with IATA on this innovation will prove to be a stepping-stone towards international air travel recovery, while providing a hassle-free experience to our customers,” he added.

indigo

Benefits of Travel Pass

The pass will enable IndiGo passengers to create a ‘digital passport’ to verify their pre-travel test or vaccination status to meet the SOPs of the destination.Furthermore, the passengers will be able to share the test and vaccination certificates with the authorities as well as the airlines to facilitate travel.The app will also enable passengers to manage and save all their travel documentation digitally and seamlessly throughout the travel experience.The platform will enable authorised labs and test centres to securely send test results or vaccination certificates to passengers.The global registry, operated by IATA, will manage, and allow the secure flow of necessary information amongst all stakeholders and to provide a seamless passenger experience.

How does the document work ?

The IATA Travel Pass has four open and interoperable modules which together create the end-to-end solution. IATA Travel Pass incorporates;

Global registry of health requirements – enables passengers to find accurate information on travel, testing and eventually vaccine requirements for their journey.Global registry of testing/vaccination centres – enables passengers to find testing centres and labs at their departure location which meet the standards for testing and vaccination requirements of their destination.Lab App – enables authorized labs and test centres to securely share test and vaccination certificates with passengers.Contactless Travel App – enables passengers to (1) create a ‘digital passport’, (2) receive test and vaccination certificates and verify that they are sufficient for their itinerary, and (3) share testing or vaccination certificates with airlines and authorities to facilitate travel. This app can also be used by travellers to manage travel documentation digitally and seamlessly throughout their journey, improving the travel experience.

PICTURE CREDIT - IATA.ORG

Something for everyone

For governments - The IATA Travel Pass will make it easier to duly verify the authenticity of the required tests and the identity of those presenting the test certificates. The Travel Pass is based on IATA’s views that a uniform testing regime would make for more effective safety and health protocol than that of quarantine requirements.

For airlines - The Travel Pass will enable them to accurately provide information to their passengers regarding test requirements and to verify that a passenger meets the requirements for travel.

For Covid test laboratories - The Travel Pass will provide the means to issue and securely deliver digital test or vaccination certificates to passengers that will be recognized by governments.

For travellers - The Travel Pass will enable them to procure accurate information on travel, testing (and eventually vaccine) requirements for their journey along with several other advantages:

Enables passengers to find testing centres and labs at their departure location which meet the standards for testing/vaccination requirements of their destinationEnables passengers to create a ‘digital passport’, verify their test/vaccination meets the regulations & shares test or vaccination certificates with authorities to facilitate travel.Can be used by travellers to manage travel documentation digitally and seamlessly throughout the travel experience.

The Travel Pass will enable them to procure accurate travel information.

The app was first used in the third week of March by an international passenger travelling from Singapore to London’s Heathrow Airport on Singapore Airlines, signifying “there is light at the end of the very long tunnel”.

As of late, numerous airlines like Singapore Airline, British Airways, Emirates, Etihad, Qatar Airways among others and a growing number of governments worldwide are trialling the IATA Travel Pass.

This is a very good sign for the Indian aviation industry as IndiGo starts IATA Travel pass, this will open several new doors for the international passengers during these trying times when travelling is full of challenges due to the COVID-19 pandemic.

Global airline executives, including Emirates president Tim Clark and Lufthansa’s CEO Carsten Spohr, believe that Air India, under the Tata group, has a great opportunity to capture a larger share of the international aviation market.

They were speaking to the media on the sidelines of the 78th annual general meeting of the International Air Transport Association (IATA) in Doha.

"Airline operations in India are difficult. However, only the Tata Group could make a legacy airline work. Air India should be as big as United Airlines, because of its domestic market as well as the non-resident Indians (NRIs) abroad and the amount of economic activity that goes in and out of India. It is a goldmine.For decades, Air India has continued to be a small player on the international scene. So, it is not easy to operate in the Indian market even though the population is pretty upwardly mobile and getting more mobile over time. So, you need a safe pair of hands with business acumen to be able to activate this (Air India). If Tatas can’t make it work, nobody over there (in India) will be able to make it work."Tim Clark, President, Emirates

Currently, Air India’s fleet size is one-fifth of United Airlines. While Air India currently has approximately 128 planes in its fleet, Chicago-based United Airlines has 860-odd aircraft.

India has a huge demand unlike a lot of other countries, he said. When asked how Air India’s rise will affect Emirates, he confidently noted, “As far as Emirates is concerned, well, bring it on, quite honestly. I mean, there is plenty for everybody.”

“As far as Emirates is concerned, well, bring it on, quite honestly. I mean, there is plenty for everybody.” - Tim Clark, Emirates President

India's international passenger market is dominated by international airlines like Emirates, one of two flag carriers of the United Arab Emirates.

Emirates - which operates 170 flights connecting Dubai with Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kochi, Kolkata, Ahmedabad and Thiruvananthapuram - carries a significant number of Indian passengers from India to Europe and the US with one stop in Dubai.

Meanwhile, Lufthansa’s Spohr said the takeover of Air India by the Tata Group will benefit Indian passengers. The Lufthansa Group appreciates the Indian government’s idea to make Air India a strong player to regain the Indian international passenger market share, he added.

“There is an opportunity for Indian carriers to take a larger share of the Indian market than what has happened in the past. Let’s be honest, most of the growth in the (Indian international passenger) market was taken by the Gulf carriers.So, I appreciate the idea of the Indian government to create a stronger player and we hope that our partner Air India will take advantage of those conditions."Carsten Spohr, CEO, Lufthansa

When asked about what kind of partnership Lufthansa Group is looking for in India, he replied, “Our partner is Air India, also here in Star Alliance. And we are watching very closely what is happening with Vistara, what is happening with other carriers, but at this point, there is no news."

Star Alliance is a global grouping of 27 airlines, which includes United Airlines, Lufthansa Group, Air Canada, etc.

ALSO READ - Air India in talks with fellow Star Alliance members for codeshare agreements

Currently, Lufthansa Group operates 42 flights per week connecting India with Germany and Switzerland.

Germany-based Lufthansa group operates various European airline brands including SWISS, Lufthansa and Austrian Airlines. Spohr said the Lufthansa Group is very happy that India has lifted its restrictions on the travel bubble.

Currently, Lufthansa Group operates 42 flights per week connecting India with Germany and Switzerland. Before the pandemic, the Lufthansa group used to operate 56 per week on the routes.

“If correct strategies are used Air India can become a very powerful player in the Indian market. Air India can definitely be strengthened. If there’s one group that can do it, it’s the Tatas."Philip Goh, Regional Vice President for Asia Pacific, IATA

India’s international passenger market is dominated by international airlines, mainly carriers based out of the Gulf region such as Emirates and Qatar Airways.

The Tatas won Air India in October 2021, finding it a pale shadow of its former self, burdened under massive debt and losses. The airline’s accumulated losses at the end of March stood at INR 83,916 crore.

The Tatas won Air India in October 2021, finding it a pale shadow of its former self, burdened under massive debt and losses.

Tata Sons’ and Air India chairman N Chandrasekaran has said the new owners will step on the gas in their initiatives to revive the airline, working on various aspects from better customer service to new planes to higher degrees of digitalisation at the back end.

But the aviation-to-automobile conglomerate has to grapple with a host of challenges including an inflated workforce, a chunk of which will likely be let go after a year; old planes that need refurbishing and old archaic maintenance contracts that need to be restructured.

ALSO READ - Air India eyes Multiple Hubs, International Expansion

ALSO READ - Air India prepares to add more than 200 aircraft; the most significant order in a long time