Airbus scraps outstanding Qatar Airways A350 order amid paint dispute

Airbus has revoked its entire outstanding order from Qatar Airways for A350 jets, severing all-new jetliner business with the Gulf carrier in a dramatic new twist to a dispute clouding World Cup preparations, two industry sources said. No comment was immediately available from Airbus or Qatar Airways.

The two aviation titans have been waging a rare public battle for months over the scarred condition of more than 20 long-haul jets that the airline says could pose a risk to passengers and which Airbus insists are entirely safe.

ALSO READ - Qatar Airways takes Airbus to London High Court over A350 skin damage

Airbus scraps outstanding Qatar Airways A350 order amid paint dispute

Qatar Airways, which was the first airline to introduce the intercontinental jet to the skies in 2015, is suing Airbus for at least USD 1.4 billion after almost half its A350 fleet was grounded by Qatar's regulator over premature surface damage.

It has refused to take delivery of more A350s until it receives a deeper explanation of damaged or missing patches of anti-lightning mesh left exposed by peeling paint.

Qatar Airways has said that peeling and cracking paint on the wings of some A350s that it already operates has exposed copper mesh underneath designed to protect against lightning strikes. 

Qatar Airways has said that peeling and cracking paint on the wings of some A350s that it already operates has exposed copper mesh underneath designed to protect against lightning strikes. 

Backed by European regulators, Airbus has acknowledged quality problems on the jets but denied any safety risk from gaps in the protective sub-layer, saying there is ample backup.

Until now, the dispute has had a piecemeal effect on the order book for Europe's biggest twin-engined jet as first Airbus, then Qatar Airways terminated some individual jets.

Now, however, Airbus has told the airline it is striking the rest of the A350 deal from its books, the sources said, asking not to be identified as discussions remain confidential.

ALSO READ - Airbus revokes the delivery of another Qatar Airways A350

The youngest affected aircraft is just 3.41 years old, while the oldest grounded plane is 7.81 years old.

In end-June, the European planemaker had outstanding orders from Qatar Airways for 19 of the largest version of the jet, the 350-passenger A350-1000, worth at least USD 7 billion at catalogue prices or closer to USD 3 billion after typical industry discounts.

Airbus' shares were up 0.41% at 1401 GMT, having halved earlier gains.

According to data from ch-aviation.com, 26 Airbus A350 aircraft have now been grounded due to the spat. This includes seven of the larger Airbus A350-1000 and 19 A350-900s. The issue has affected aircraft across a range of ages. The youngest affected aircraft is just 3.41 years old, while the oldest grounded plane is 7.81 years old.

This includes seven of the larger Airbus A350-1000 and 19 A350-900s.

ALSO READ - Qatar Airways accuses Airbus of acting like a “bully” over ‘peeling paint’; files USD 1 billion lawsuit

The sweeping new A350 cancellation comes six months after Airbus also revoked the whole contract for 50 smaller A321neo jets in retaliation for Qatar refusing to take A350 deliveries.

ALSO READ - Airbus responds to Qatar Airways’s A350 dispute by cancelling A321 Order

The spillover to a different model was branded "worrying" by the head of a body representing global airlines, the International Air Transport Association.

The latest move is likely to widen a rift between two of the flagship companies of close allies France and Qatar. Barring an elusive settlement, the dispute is already set for a rare corporate trial in London next June. 

The sweeping new A350 cancellation comes six months after Airbus also revoked the whole contract for 50 smaller A321neo jets in retaliation for Qatar refusing to take A350 deliveries.

It comes as the airline industry grapples with an uneven recovery from the COVID-19 pandemic and as Qatar Airways is preparing to handle the bulk of some 1.2 million visitors expected for the FIFA World Cup in November and December.

Airbus has argued that the airline is using the dispute to bolster its finances and reduce its fleet of costly long-haul jets as its target long-haul market recovers sluggishly.

Qatar Airways, which in June posted its first annual profit since 2017, maintains it needs more capacity for the World Cup, forcing it to lease planes and bring less efficient A380s out of retirement to plug a gap left by grounded A350s.

Qatar Airways maintains it needs more capacity for the World Cup, forcing it to lease planes and bring less efficient A380s out of retirement to plug a gap left by grounded A350s.

The row centres on whether the A350's problems - including what appears to be damage to parts of the wings, tail and hull according to two jets seen by Reuters - stem from a cosmetic issue or, as the airline claims, a design defect.

ALSO READ - Airbus cancels more A350 orders of Qatar Airways

A Reuters investigation in November revealed that several other airlines had found surface damage since 2016, the second year of A350 operations, prompting Airbus to accelerate studies of an alternative mesh that also saves weight. 

So far, however, none of the A350's other roughly three dozen operators has joined Qatar in voicing concerns over safety due to surface flaws, as they continue to fly the jet.

(With Inputs from Reuters)

The Indian Government has activated bilateral air service agreements with 116 countries to increase and expand connectivity between India and nations around the world and is allowing foreign carriers to serve India and to add more flights to the country’s metropolitan cities.

The government has also said due to a significant imbalance in the number of points of call in favour of foreign carriers at present, it is not granting any non-metro airport as a new point of call to any foreign carrier to operate passenger services. 

Govt signs an agreement with 116 countries, to bring down airfare.

Indian designated carriers are free to mount scheduled operations to and from any international airport, including Kannur International Airport, under the ambit of the bilateral Air Service Agreement (ASA) concluded by India with foreign countries.

"Any designated foreign airline can operate to/from a point in India if it is designated as a point of call in the bilateral Air Services Agreement (ASA) signed between India and the country which has designated the airline."  Minister of State for Civil Aviation Gen VK Singh (retd).

Journey business consultants mentioned the federal government’s transfer will profit passengers and should carry down airfares.

Travel industry experts said the government’s move will benefit passengers and may bring down airfares. 

"It is good to have bilateral air service agreements with countries to increase seat capacity and have an open sky policy for foreign carriers as it will benefit passengers, the travel industry has been urging the government for quite some time that foreign carriers be allowed to operate from cities other than metro airports. Indian-designated carriers are free to mount operations from any city but a foreign carrier is not. Till the time it's not done, there will be a demand-supply gap which can impact prices," Anju Wariah, Director, Group Business Development, STIC Travel Group

The countries with which India has signed bilateral air service agreements include those in Asia, Europe, the Middle East and South America. 

The government on Monday, August 1 informed Rajya Sabha that private players are free to use drones for delivery purposes provided they comply with Drone Rules, 2021.

The Union Minister said that last year in September the Government notified the Production-Linked Incentive (PLI) scheme to promote the growth of drone manufacturing by private companies.

The government says the Drones Rules, 2021 provide the necessary regulatory framework for the commercial use of drones.

The government is already utilising the services of drone players for vaccine delivery, and inspection of oil pipelines and power transmission lines, among other things. Drones offer tremendous benefits to almost all sectors of the economy from agriculture to law enforcement.

Drones have also been deployed by authorities for the survey of mines and land mapping under the Centre’s ambitious Survey of Villages Abadi & Mapping with Improvised Technology in Village Areas (SVAMITVA) scheme.

Minister of State for Skill Development and Entrepreneurship Rajeev Chandrasekhar said that 126 industrial training institutes(ITIs) across 19 states have undertaken five short-term skilling courses on drone manufacturing, repairing and maintenance.

In April, food tech startup Swiggy shortlisted four drone startups – Garuda Aerospace, Skyeair Mobility, ANRA+TechEagle Consortia, and Marut Dronetech – to pilot its grocery delivery project in Bengaluru and Delhi-NCR.

ALSO READ - Uttar Pradesh to have a drone excellence centre

Gujarat is home to the largest number of such ITIs at around 20, followed by Uttar Pradesh with 15 and Assam with 14. Maharashtra is home to 12 such ITIs, while Andhra Pradesh has 11 such ITIs. 

ALSO READ - Swiggy teams up with Garuda Aerospace to begin trial runs using drones to deliver groceries

Startups and other private players have shown a lot of interest in the drone delivery space in recent times. In April, food tech startup Swiggy shortlisted four drone startups – Garuda Aerospace, Skyeair Mobility, ANRA+TechEagle Consortia, and Marut Dronetech – to pilot its grocery delivery project in Bengaluru and Delhi-NCR. 

The Centre has lately unveiled a slew of measures to spur the drone manufacturing sector. 

In January this year, Zypp Electric also announced that it would commence drone delivery of packages in five cities – Bangalore, Hyderabad, Mumbai, Pune, and Delhi-NCR. Piramal Foundation, in collaboration with Redwing Labs, also piloted drones for faster transportation of tuberculosis samples in Odisha’s Kalahandi in April this year. 

States such as Karnataka, Tamil Nadu, Rajasthan, and Punjab also tested long-range drone deliveries on a pilot basis in June last year. Telangana government had also partnered with hyperlocal delivery app Dunzo last year to pilot drone-based deliveries of medicines in the state. 

The space is populated by new emerging players such as ideaForge, Garuda Aerospace,  IoTechWorld, and Skylark Drones, among others.

The Centre has lately unveiled a slew of measures to spur the drone manufacturing sector. From liberalised drone rules to banning drone imports, the Centre aims to leverage ‘Drone Shakti’ to push emerging startups from the sector. 

According to a report, the Indian drone industry generated revenue to the tune of USD19.93 Mn in 2022. This number is expected to grow annually at a compounded annual growth rate (CAGR) of 10.12% between 2022 and 2027.

Mehair has been awarded a contract by Gujarat to relaunch seaplane services between Ahmedabad and Ekta Nagar (previously known as Kevadia), close to the Statue of Unity tourism attraction, using a nine-seater Cessna (single turboprop) 208B Grand Caravan amphibian.

The service was previously operated by SpiceJet subsidiary SpiceShuttle, which suspended the route on April 10, 2021, on the back of financial difficulties due to the COVID-19 pandemic.

ALSO READ - Seaplane service to resume after a year of suspension as bids open

Mehair to relaunch seaplane services in Gujarat

Now the Gujarat State Aviation Infrastructure Company Limited (GUJSAIL) has awarded the tender to Mehair, which is in the final stages of importing a pre-owned Cessna Grand Caravan 208 amphibian from the United States.

The aircraft is expected to arrive by mid-August to begin proving flights, according to GUJSAIL Director for Civil Aviation and Chief Executive Officer Ajay Chauhan.

"The letter of operations has been handed out to Mehair, and they were given 120 days to procure the aircraft from the US. They are currently in the last phase of the procedure for procurement of a pre-owned Cessna Grand Caravan. Since new amphibious aircraft are not manufactured in big numbers, we have approved the procurement of a pre-owned aircraft. We are expecting it to arrive in Gujarat by mid-August, following which, the formalities for the registration, technical acceptance, and flying tests by the DGCA will begin."Ajay Chauhan, Director for Civil Aviation and Chief Executive Officer, Gujarat State Aviation Infrastructure Company Limited (GUJSAIL)

India's longest-standing seaplane operator, Mehair will operate the aircraft under the Gujarat government's Viability Gap Funding (VGF) scheme instead of the RCS-UDAN scheme of the Ministry of Civil Aviation, which launched the service through SpiceJet in 2020.

ALSO READ - Udan 4.2 scheme receives more than 100 bids

Officials confirmed that Mehair will operate two daily flights between the Sabarmati Riverfront and Dyke Three of Sardar Sarovar Dam, located near the Statue of Unity.

The service was previously operated by SpiceJet subsidiary SpiceShuttle, which suspended the route on April 10, 2021, on the back of financial difficulties due to the COVID-19 pandemic.

Gujarat Aviation Secretary Hareet Shukla blamed the failure of the SpiceJet service on the pandemic, which had resulted in the closure of the tourism industry. "Things are different now. This time we are working out better viability for the project to sustain itself. We have not set a deadline, but it will happen soon," he said.

The SpiceShuttle service had been short-lived – from October 31, 2020, to April 10, 2021 - and had remained suspended for 47 days due to maintenance requirements.

The operator's single DHC-6-300 amphibian, wet-leased from Maldivian, had to be sent for mandatory maintenance in the Maldives due to a lack of wet and dry dock facilities in Ahmedabad. The ill-fated project cost the Gujarat state INR77 million rupees (USD1 million).

Mehair is in the final stages of importing a pre-owned Cessna Grand Caravan 208 amphibian from the United States.

As reported, tenders for the three-year contract were reissued in January 2022. Three carriers were reported to have expressed interest, Mehair, Ventura AirConnect, and an unnamed private firm from Gujarat.

Maritime Energy Heli Air Services Pvt. Ltd. (MEHAIR) has pioneered the launch of seaplane services in India since January 2011.

With the introduction of small aircraft which can operate from runways and water bodies within the course of the same flight, the company has ushered in a new and exciting mode of connectivity for the tourism industry in the country.

Low cost carrier SpiceJet is said to be in active discussion with a Middle Eastern carrier for a possible stake sale.

SpiceJet promoter Ajay Singh holds a stake of around 60% in the budget carrier. Sources said a big Middle Eastern airline has expressed interest to pick a 24% stake and a board seat in SpiceJet. A big Indian business conglomerate has also approached Singh for a stake in the airline.

Singh started the airline in 2004-05, tying up with NRI Bhulo Kansagra who had bought erstwhile Modiluft — that flew from 1993 and 1996 — from industrialist SK Modi in 1999-2000.

SpiceJet promoter Ajay Singh holds a stake of around 60% in the budget carrier.

Reacting to the development, a SpiceJet Spokesperson said, "The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures by applicable regulations."

Earlier, on Tuesday, August 2, SpiceJet said that it entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.

ALSO READ - SpiceJet will no longer remain on a ‘cash and carry’ basis at AAI-run airports; clears all dues

With this, SpiceJet will no longer remain on 'cash and carry' at AAI-run airports across the country and will revert to advance payment mechanisms for daily flight operations. SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in recent times.

SpiceJet is in active discussion with a Middle Eastern carrier for a possible stake sale

SpiceJet's domestic network covers the length and breadth of the country with the airline operating to 51 domestic destinations. Pioneer of the regional connectivity scheme, SpiceJet is the country's largest regional player helping connect the remotest parts of the country by air.

The airline's focus on providing direct flight connectivity to regional hubs not only ensures better connectivity but also has a cascading effect on tourism and economic activity in the region.

SpiceJet has added multiple UDAN destinations to the country's aviation map including Pakyong, Jharsuguda, Kandla, Darbhanga, Kanpur, and Ajmer (Kishangarh), among others.

SpiceJet's domestic network covers the length and breadth of the country with the airline operating in 51 domestic destinations

ALSO READ - Lessor wants 3 SpiceJet aircraft deregistered over unpaid dues

The airline has been under the spotlight after a slew of incidents of technical snags on its flights, and one of its Dubai-based lessors asked the regulator to deregister three of SpiceJet's planes.

ALSO READ - SpiceJet under attack by ransomware; morning flights affected

The airline is yet to release its Q4FY22 results, as the numbers are being re-authenticated due to a ransomware attack that impacted its IT systems.

Shares of SpiceJet climbed nearly 7% in Wednesday's (August 3) trade after it was reported that the airline is in talks with a Middle Eastern carrier for a 24% stake sale.

Jump in shares of SpiceJet

Shares of SpiceJet climbed nearly 7% in Wednesday's (August 3) trade after it was reported that the airline is in talks with a Middle Eastern carrier for a 24% stake sale. The scrip rose 6.65% to hit a high of INR 47.35 on BSE.

The SpiceJet stock rallied 5% on Tuesday, August 2, too, after it announced it had agreed with the Airports Authority of India (AAI) and cleared all outstanding principal dues of the airport operator.

Aerospace giant Airbus on August 2 has signed a contract with aviation infrastructure developer GMR Group to provide aircraft maintenance training to young aviation engineers making a trending career choice.

"GMR will provide the fully integrated Aircraft Maintenance Engineer (AME) licensing program at the GMR School of Aviation in Hyderabad," the company said in a statement.

The four-year course will include two years of classroom training and a two-year training in maintenance, repair, and overhaul (MRO) at GMR Aero Technic in Hyderabad followed by Aircraft Type Training.

Airbus and GMR collaborate to provide training in aircraft maintenance in Hyderabad

According to the contract, Airbus will provide the necessary software and courseware in the form of trainee handbooks, examination database, online access to Airbus customised basic training modules and Airbus Competence Training (ACT) for the Academy media package which is the technical training material required for the courses.

In addition, Airbus will also provide training to GMR instructors along with the assessment of the training centre.

“The partnership with GMR represents a significant deepening of MRO capabilities in India that are required to match the tremendous future demand for such services from the domestic aviation industry. Airbus will continue to contribute to the development of India’s wider aerospace ecosystem, including enhancing its manufacturing and services capabilities through its industrial footprint."Rémi Maillard, President and Managing Director, Airbus India & South Asia

GMR Aero Technic is one of India’s leading third-party MRO (Maintenance, Repair & Overhaul) facilities located at GMR Hyderabad International Airport.

“The aviation ecosystem is evolving rapidly. India is all set to become the largest aviation market by 2030. The increase in air traffic is leading to fast growth in the commercial aviation fleet in the country. To cater to the emerging demand and support the industry, there is a need for skilled professionals.”Ashok Gopinath, CEO, GMR Aero Technic

Commencing this year, the programme will be open to aspirants who have cleared their Higher Secondary Certificate (Class 12) examination with Physics and Mathematics as their main subjects. According to the Airbus Global Market Forecast 2022, India will require some 45,000 new aircraft technicians over the next 20 years.