Airbus likely to get 235 single-aisle jet orders out of 500 from Air India

Radhika Bansal

21 Jan 2023

European planemaker Airbus is set to win an order for 235 single-aisle planes as part of a historic purchase of some 495 jets due to be announced by a resurgent Air India on January 27, industry sources told Reuters.

ALSO READ - Air India close to placing landmark orders for 500 jetliners

The deal, roughly split with rival Boeing, covers a total of 425 single-aisle jets including 235 Airbus A320neo-family planes as well as 190 Boeing 737 MAX airliners. The order is also expected to include up to 70 widebody long-haul aircraft including up to 40 Airbus A350s as well as some 20 Boeing 787s and 10 Boeing 777X, the sources said.

ALSO READ - Air India jumbo aircraft order to include B737 MAX and B787 Dreamliner

Airbus likely to get 235 single-aisle jet orders out of 500 from Air India

Airbus declined to comment. Air India and Boeing did not immediately respond to requests for comment. It was reported last month that Air India was close to placing orders for around 500 jets from both Airbus and Boeing after months of intense talks on the core plane order.

ALSO READ - Air India expected to order close to 500 aircraft: Aircraft lessor

Industry sources said finalising the deal depended on ongoing negotiations with engine makers, but two people familiar with the matter said talks were mostly complete. Such a deal would rank among the biggest by a single airline in volume terms, overshadowing a combined order for 460 Airbus and Boeing jets from American Airlines over a decade ago.

Next Friday's likely announcement comes a year to the day after the Tata Group conglomerate regained control of Air India, launching an ambitious shake-up and renewal of the flag carrier that entrepreneur J.R.D. Tata originally founded in 1932.

Air India is close to placing orders for around 500 jets from both Airbus and Boeing after months of intense talks on the core plane order.

Air India, with its maharajah mascot, was once known for its lavishly decorated planes and stellar service but its reputation declined in the mid-2000s as financial troubles mounted. Tata Group has said it plans to transform the previously state-run carrier into a "world-class airline" in five years. The deal consolidates Airbus' position in India as the leading supplier of narrow-body planes.

ALSO READ - What is the plan of Air India for the next 5 years?

IndiGo, the country's largest carrier, is the biggest customer for Airbus' A320neo family. It is also, however, a breakthrough for Boeing which has been lagging behind Airbus in the fast-growing market, where its customers include start-up Akasa Air and SpiceJet.

ALSO READ - Air India’s contract with Airbus & Boeing delayed over Engine-Cost Debate

(With Inputs from Reuters)

Read next

With IndiGo codeshares, Qantas expands its India destinations

Sakshi Jain

21 Jan 2023

Australian airline Qantas will broaden its codeshare partnership with IndiGo to provide travellers with more connection options between Australia and India.

Direct flights between the two cricket-loving countries have occasionally been hard to come by despite the sizeable Indian diaspora in Australia. However, it now appears that Qantas has recovered its hunger for these flights. The largest airline in India, IndiGo, and Qantas announced on Friday, January 20, that they were increasing their codeshare agreements.

On Friday, January 20, Qantas and IndiGo announced that they were expanding their codeshare arrangements

In August of last year, Qantas travellers flying to Bengaluru and Delhi could seamlessly connect to other well-liked spots, including large cities like Mumbai and Chennai or iconic locations like Pune and Goa. Currently, Qantas offers four return flights a week from Sydney to Bengaluru and four roundtrip flights a week from Melbourne to Delhi.

Also read: Qantas announces direct flights between Sydney-Bengaluru, finalises codeshare with IndiGo

Eight more cities are now accessible to Qantas travellers under the second phase of the deal.

New Indian cities under the expanded codeshare include

Guwahati

Indore

Chandigarh

Mangalore

Jaipur

Nagpur

Thiruvananthapuram

Visakhapatnam

??The destinations that were already in place are:

Ahmedabad

Amritsar

Bengaluru

Delhi

Goa

Mumbai

Kochi

Kolkata

Hyderabad

Lucknow

Patna

Pune

This means that Qantas passengers can connect to 21 Indian cities from Bengaluru and Delhi.

More than 250 new flights are now available for Qantas passengers to book, and access to the domestic IndiGo network is now more flexible.

Qantas passengers can connect to 21 Indian cities from Bengaluru and Delhi

According to Qantas Chief Customer Officer Markus Svensson, passengers have shown the new routes to India to be highly popular. The codeshare agreement with IndiGo, Svensson continued, had enhanced the travel experience for Qantas customers between Australia and India, and the new destinations will provide them with even more choices.

“Our codeshare partnership with IndiGo has improved the way our customers travel between Australia and India, and the additional destinations give travellers even more options.”

“The new codeshare flights will allow our customers to enjoy more connections across India from our Delhi and Bengaluru gateways and have their luggage checked straight through to their final destination.”

–Markus Svensson, Chief Customers Officer, Qantas

It can often be difficult to change from an international to a domestic flight, but Qantas and IndiGo appear to have planned for that and made it simple. Customers of Qantas flying on IndiGo can bring the same amount of luggage as they did on their flight from Australia and enjoy complimentary food and beverages while on the flight.

On connecting IndiGo flights operated with a QF code, Qantas Frequent Flyers can accrue and use points. Additionally, IndiGo will take into account any applicable tier-based perks, such as priority check-in and priority baggage, that are provided to Qantas Silver, Gold, Platinum, and Platinum One frequent traveller.

IndiGo will consider any appropriate tier-based benefits offered to Qantas Silver, Gold, Platinum, and Platinum One frequent traveller, including priority baggage and check-in

The extension is a good move towards strengthening travel partnerships and connections between the two nations, according to Sandip Hor, head of the Australia India Travel and Tourism Council (AITTC).

“The additional destinations will give the Indian diaspora and the Australians planning a trip to India a more flexible choice to travel to different parts of the country.”

“Through a codeshare agreement with IndiGo, India’s largest domestic carrier, Qantas is trying to increase its presence in India. So I think with time, more destinations will be added to the existing list.”

–Sandip Hor, Head, AITTC

Tanvi Goel, a travel agent in Brisbane, told SBS Punjabi that the codeshare arrangement between the two airlines would be more practical and cost-effective for Qantas passengers but also believes that the facility comes with a few caveats.

"The codeshare arrangement between the two airlines would be more practical and cost-effective for Qantas passengers"- Tanvi Goel, Travel Agent, Brisbane

“Firstly, IndiGo is a domestic carrier, and it isn’t easy for them to provide the same standard of service as an international carrier like Qantas, so they will have to up their game. Secondly, flyers travelling to destinations with no immigration desks will have to get their immigration done in Delhi or Bengaluru before flying out to their ultimate destinations. Also, they will have to change to the domestic terminal from Delhi to board an IndiGo flight.”

–Tanvi Goel, Travel Agent, Brisbane

Overall, with the codeshare agreements, the expansion will improve the overall flying experience for travellers both in India & Australia.

Source: SBS Punjabi

Read next

Amazon to launch dedicated cargo fleet in India

Sakshi Jain

21 Jan 2023

Amazon is set to launch a cargo fleet in India, as part of a drive to expand and gain more control over logistics in one of its fastest-growing regions.

The company will only employ Amazon's recognisable Prime Air to deliver products, and each aircraft will display the well-known light blue "smile" insignia on the fuselage.

Only Amazon's recognisable Prime Air will be used by the business to deliver goods, and each plane will sport the recognisable light blue "smile" logo on its fuselage

QuikJet, a Bengaluru-based cargo airline that is a joint venture between Cyrus Guzder of supply chain business AFL and Ireland-based ASL Aviation Group, is expected to begin its fleet by the end of this month. According to the people who are familiar with the matter, Amazon wants to have six Boeing 737-800 freighters in its fleet by the end of this year, up from the fleet's first two, which can carry up to 23.9 tonnes of cargo.

Amazon responded press time Friday, January 20, to an email seeking comment. QuikJet couldn’t be reached for comment.

Amazon is beginning its specialised air cargo business for the first time outside of the US and Europe in India, enabling it to establish its own overnight delivery network in this country as well.

The Seattle-based business introduced Prime Air in the US in 2016 and runs out of airports near its storage facilities. There are 91 aircraft in the fleet worldwide, including tiny Boeing 737s, medium 767s, and ATRs. These are all rented from and run by third-party companies. The ASL group oversees Amazon's air cargo activities across Europe.

Amazon One flys over Seafair 2016

QuikJet was launched by IL&FS, Tata Capital, and IDFC in 2007. However, due to the high price of oil, QuikJet had to halt operations in 2013. It was revived via a collaboration between Guzder and ASL last year.

“Having Amazon as a dedicated customer will make the QuikJet model successful this time as it will completely eliminate its dependence on freight forwarders and have certainty on revenue.”

–A person aware of the matter said

According to a report by brokerage firm Bernstein, Amazon has a sizable base of "Prime" users in India, one of its key international markets. For Prime users, Amazon offers same-day or next-day deliveries.

According to those briefed on the strategy, the company believes that logistical growth is essential as it works to speed up delivery and make the process more efficient.

QuikJet was launched by IL&FS, Tata Capital, and IDFC in 2007

“While Amazon has been using the belly space of airlines like IndiGo, and SpiceJet, it felt that it needed more control over its air cargo network because the number of Prime customers has been growing significantly in India. A dedicated cargo airline gives the company control to move its objects from its warehouse to nearby smaller cities overnight.”

–The person cited above said

He continued by saying that India would serve as a centre for other Southeast Asian nations.

According to a report from ET, the local shipping division of the US e-commerce behemoth, Amazon Transportation, which houses the logistics division, intends to expand its logistics infrastructure operations in India to accommodate purchases from other online retailers besides Amazon.

With the dedicated freighter fleet rising from just five aircraft before Covid to 28 aircraft at this time, Indian airlines are increasing their cargo capacity. In addition to Bluedart, IndiGo, SpiceJet, Air India Express, and others are seeking to add more cargo-carrying aircraft.

Source: ET

Read next

DGCA fines Air India INR 30 lakh in urination case, pilot suspended for 3 months

Radhika Bansal

20 Jan 2023

The Directorate General of Civil Aviation (DGCA) on Friday, January 20 imposed a fine of INR 30 lakhs on Tata-owned Air India for violation of rules. The regulator has also suspended the license of the Pilot-In-Command of the flight for 3 months for failing to discharge his duties as per Rule 141 of the Aircraft Rules, 1937, and applicable DGCA Civil Aviation Requirements & INR 3 lakhs fine on Air India's Director-in-flight services. The staff involved in the matter was earlier taken off the roster.

Air India has submitted its reply to the DGCA in the case where passenger Shankar Mishra urinated on a woman co-passenger onboard a New York-Delhi flight in November last year.

On January 6, DGCA issued Show Cause notices to the Accountable Manager of Air India, the Director of in-flight Services of Air India, and all the pilots and cabin crew members of that flight as to why enforcement action should not be taken against them for dereliction of their regulatory obligations.

DGCA fines Air India INR 30 lakh in urination case, pilot suspended for 3 months

For fact-finding, DGCA sought the details of the incident from Air India and based on the reply of the airline, prima facie it emerges that provisions related to the handling of an unruly passenger on board have not been complied with. The conduct of the concerned airline appears to be unprofessional and has led to a systemic failure.

Prima facie it lacks appreciation of regulatory obligations as described in applicable Aircraft Rules 1937, Civil Aviation Requirements on 'Handling of Unruly Passengers', Cabin Safety Circular, Air India Operations Manual, Air India Safety and Emergency Procedure Manual and Air India Quick Reference Handbook and is devoid of empathy.

On Thursday, January 19, Air India banned Shankar Mishra from flying for four months in connection with the case. Other airlines are also expected to ban him from flying once the DGCA comes out with its decision on the matter.

Air India banned Shankar Mishra from flying for four months in connection with the case.

This means he would be banned from all the airlines under the Air India group — Air India, Air India Express, AIX Connect as well as Vistara. It had earlier barred him from flying for 30 days due to the internal committee enquiry.

His lawyer also made some bizarre arguments in the matter, claiming that Kathak dancers have bladder issues. “The complainant woman's seat was blocked. It wasn’t possible for him (Mishra) to go there. The woman has a problem with incontinence. She urinated on herself. She is a Kathak dancer, 80% of Kathak dancers have this issue,” the lawyer was quoted as saying last week. This also sparked angry reactions from different quarters.

Air India also registered another similar incident on the Paris-Delhi flight last month.

ALSO READ - Air India passenger incident: What? How? When?

Read next

IndiGo uses Sensors to cut Life Vest inspection time by 90%

Sakshi Jain

20 Jan 2023

IndiGo will deploy a Sensor Tech for quicker and more accurate scanning of life vests on its aircraft to improve efficiency and speed up aircraft turnaround.

What are Life Vests?

How attentively, if at all, did you truly pay attention to the cabin attendant security demonstrations on your most recent flights? If you are reading this, you most likely belong to the segment of the travelling public that is an expert at fastening the safety belt.

Even while you may be aware that there is a life jacket underneath your seat, if for no other reason than the constant reminder on the back of the seat in front of you, you might not have given them much thought or thought about how important they are. 

An Airline flight attendant demonstrating a life vest before takeoff

The purpose of a life jacket is to keep you afloat in the water. To reduce the chance of drowning, they will automatically turn your face up, keeping your mouth and nostrils above the water. This is especially crucial if you are unconscious when you fall into the water in the case of mishaps. 

Life Vests Inspections

Life Vests often make up a very little portion of an air traveller's journey. In fact, they are so tiny that they may be tucked away in an armrest or beneath a seat. Although small, yet powerful! 

All passenger aircraft in commercial service must be equipped with life vests as a mandated piece of safety equipment. Periodic inspections of these vests are necessary to make sure there are enough of them on board and that they are in usable condition. It would typically take 90 to 120 minutes to manually inspect every vest, depending on the type of aircraft. According to a statement from IndiGo, this time has been reduced to 3–4 minutes per aircraft thanks to the use of sensor technology.

The time required for each aircraft's life vest inspection has been slashed to 3–4 minutes, according to a statement from IndiGo

IndiGo’s Sensor Technology for Inspections

Sensor technology is an automated data gathering technique that reads the tag on the life vests, allowing for the identification, tracking, and localisation of the tagged life vests. This system will enable IndiGo to keep track of the availability and expiration date of life vests in real-time.

This will save a massive amount of time for India's largest fleet of 300 aircraft and more than 53,000 life vests. The significant time savings may lead to higher fleet utilisation and shorter passenger wait times.

"Developed completely in-house, this sensor-based inspection process for life vests enables us to prepare aircraft faster for the next flight."- Neetan Chopra

“Developed completely in-house, this sensor-based inspection process for life vests enables us to prepare aircraft faster for the next flight. We will continue to push into new digital and innovative frontiers and introduce more such solutions to enhance operational efficiency and provide on-time, hassle-free, and affordable travel experience to our customers.”

–Neetan Chopra, Chief Digital and Information Officer, IndiGo

Adopting New Technologies

This isn't the first time IndiGo has used technology for better productivity. In partnership with India's aviation regulator, the DGCA, it became the first carrier in the nation to develop a "Digital e-logbook" for pilots in December.

In December, IndiGo became the first airline in the country to create a "Digital e-logbook" for pilots

The automated procedure ensures data and format consistency, resulting in operations that are safer and more effective. The removal of multilayer data validation allows for data accuracy and prompt submission for the issuance, renewal, and endorsement of licences. It also provides pilots with real-time access to flying hour data.

Also read: IndiGo introduces digitised e-logbook for pilots

Additionally, Vistara disclosed last year that it would replace the traditional paper-based aircraft technical log, cabin log, travel log, damage log, and fuelling log with electronic logbook software from Ultramain Systems.

Also read: Vistara implements Digital Rostering Solution for enhanced crew experience

Last year, AIX Connect (formerly AirAsia India) had a fantastic year in terms of on-time performance. Additionally, RedSmart Plus, a data analytics-driven tool created by Tata Consultancy Service (TCS), was one of the driving drivers behind the airline's excellent OTP.

One of the main forces behind AirAsia's successful OTP was RedSmart Plus, a data analytics-driven solution developed by Tata Consultancy Service (TCS)

The tool assists management in precisely tracking how much time is spent on various duties like loading and unloading, cleaning aircraft, refuelling, and catering. Ground staff input the data into the app, and its analytics feature generates reports on expected on-time performance for the day, increasing the airline's operational effectiveness.

Source: TOI

Read next

AAI to monetize land parcels near airport terminals

Radhika Bansal

20 Jan 2023

The Airports Authority of India (AAI) is working on a draft to amend the AAI Act, 1994, which will allow the state-run airport operator to monetize land parcels near airport terminals across the country, two officials aware of the matter said. According to the existing provisions of the AAI Act, the authority can use the land only to discharge functions related to airports.

“The amendment to AAI Act, 1994 is currently in a draft stage. Legal opinion has also been sought from the ministry of law and justice. Simultaneously, the authority has identified land parcels, where AAI can commence the process once final approvals are in place," one of the two officials said, requesting anonymity.

AAI has 55,000-60,000 acres of land across more than 150 locations, including airports and airstrips. “Out of the 150 airports, there are over 50 airports where land records are clear, and suggest that redevelopment will be possible without any roadblock. They should be the first in line once the Cabinet clears the proposal," the second official said, also seeking anonymity.

AAI to monetize land parcels near airport terminals

AAI’s plan to unlock additional revenue from a tangible asset like the land was suggested in the National Civil Aviation Policy, 2016. “There are restrictions on the use of land allocated for commercial use of airports. Ministry of civil aviation will explore ways to unlock the potential of the same by liberalising the end-use restrictions for existing (excluding public-private partnership) and future greenfield and brownfield airports of AAI, and future greenfield and brownfield airport projects under PPP," the policy stated.

In 2017, AAI identified land for city-side development near airports at Lucknow, Raipur, Tirupati, Bhubaneswar, Varanasi, Kolkata, Amritsar and Jaipur in a phased manner. It had also started construction of multi-level car parking with commercial facilities at Chennai, Ahmedabad, Pune, Calicut, Jaipur and Amritsar, besides planning to build hotels at Amritsar, Bhubaneswar and Kolkata airports.

So far, revenue generated from non-aeronautical sources at major airports of AAI makes up about 23% of its total airport services revenue. AAI recorded total revenue of INR 6,841 crore in FY22, up from INR 4,867 crore in the previous year. Revenue stood at INR 12,837 crore during the non-covid year of FY20.

So far, revenue generated from non-aeronautical sources at major airports of AAI makes up about 23% of its total airport services revenue.

The organization has been incurring losses since the onset of the pandemic due to a sharp drop in air traffic. AAI is expected to have incurred a loss of ?800-900 crore in FY22.

Under the airport development programme, announced by the Centre in 2021, AAI has taken up the development of new and existing airports with a projected capital expenditure of INR 25,000 crores over five years, including the construction of new terminals, expansion and modification of existing terminals, expansion and strengthening of existing runways, aprons, airport navigation services infrastructure, control towers and technical blocks.

So far, the government has accorded in-principle approval for setting up 21 greenfield airports in India. Out of this, eight airports—Sindhudurg and Shirdi in Maharashtra, Durgapur (West Bengal), Pakyong (Sikkim), Orvakal (Andhra Pradesh), Kannur (Kerala), Kalaburagi (Karnataka) and Kushinagar (Uttar Pradesh)—have been operationalized.

(With Inputs from Mint)

Comment