Akasa Air picks CFM's LEAP-1B engines for its Boeing 737Max planes

Rakesh Jhunjhunwala-backed Akasa Air on Wednesday, November 17 said that it has signed an agreement with CFM International for its LEAP-1B engines in a deal valued at nearly $4.5 billion at list price to power the 737 MAX airplanes it recently bought.

The low-cost airline had placed an order for 72 Boeing 737 MAX jets on Tuesday, November 16, valued at nearly $9 billion at list prices. Akasa Air’s order includes two variants from the 737 MAX family, including the 737-8 and the high-capacity 737-8-200.

(Image Courtesy - Bangalore Aviation)

“We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmentally friendly company with the youngest and greenest fleet in the Indian skies,” said CEO Vinay Dube.

Jhunjhunwala, known as "India's Warren Buffett", has teamed up with former chief executives of IndiGo, the country's biggest carrier, and Jet Airways to tap into demand for domestic air travel, which is nearing pre-pandemic levels as the country recovers from a devastating outbreak earlier this year.

The agreement also includes spare engines and long-term services, the companies said in a joint statement.

The deal gives Akasa Air a comprehensive maintenance program delivered by CFM, the world's premier engine manufacturer.

(Image Courtesy - Flight Global)

With this purchase and services agreement, Akasa Air will have from day-1 of its operations an innovative and comprehensive maintenance programme delivered by CFM, which is a 50/50 joint venture between GE and Safran Aircraft Engines.

"The airline is pleased to partner with CFM International as it embarks on an exciting journey to launch the greenest, most affordable and most dependable airline in India.The state-of-the-art, high-performance LEAP-1B engine will support our tech-driven culture by enabling real-time engine monitoring and predictive maintenance planning. With this agreement, we now have the foundation to ensure the most competitive and reliable operations in our fast-growing market."Vinay Dube, CEO, Akasa Air

As per CFM, to date, nearly 600 engines are operated by airlines from the Indian subcontinent and over 1,700 LEAP engines are on order.

"It'll be a great honour to help launch this new airline with the industry-leading support and reliability that has become a hallmark of CFM International."Philippe Couteaux, Executive Vice President of Sales and Marketing, CFM International

CFM’s advanced LEAP engine has logged over 12 million engine flight hours in commercial operation. The LEAP-1B engine entered into service on the Boeing 737 MAX in 2017. Over 600 aircraft have been delivered to some 66 operators worldwide and the fleet has logged more than 2.5 million engine flight hours.

"The fleet is providing better fuel consumption and lower CO2 emissions, as well as a significant improvement in noise compared to the best CFM56 engines while maintaining the CFM legendary reliability," a CFM statement said.

Akasa plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India.

The first deliveries are expected to start early next year, in time for the airline to get its Air Operating Permit and start scheduled commercial service, according to a statement from Boeing.

This is a major step forward for the airline and a giant leap for Boeing - which has been trying to find a foothold in the Indian aviation market.

Representative | Military Embedded Systems

Several firms are getting on the bandwagon to launch their autonomous design of flying cars and taxis and LuftCar is no different. Except, the company is closer to launching the aforementioned models before anyone else in the market.

The hydrogen-powered autonomous vehicle designed by the company reportedly has two modules- the flying module and one when it is not flying-meaning it can just as easily race through the roads when it isn't airborne. Best of both worlds you say? You bet it is.

Apparently, it can clock a maximum of 150 miles (240 km) in one go reaching speeds of 220 miles per hour (350 kmph). Also, it can hit an altitude of around 4,000 feet thanks to six propellors attached as a part of its frame.The 5 seaters autonomous craft is priced at $350,000 and clearly, it is intended for the corporate giants and the affluent, looking for a quick ride.

 People will actually buy a small car and plane combined; hence they don‘t need to live in a congested city and travel from far-flung places to cities with easeSanth Sathya, founder and CEO of LuftCar, was quoted as saying by Khaleej Times

Hydrogen has immense potential to be used in local and commercial air transport-areas that electric batteries currently do not have the physical capacity to be a scalable option.

And if 2050 world climate obligations are to be met successfully, implementation of sustainable travel is the way to go.

The company is optimistic about bringing this disruptive technology to the fore as early as 2023.

For the unversed, LuftCar LLC, based in Florida, is founded by Santh Sathya. Alumni of Anna University, he envisions a fully hydrogen-powered vehicle and also emphasized how LuftCar can be used as an air ambulance, disaster relief, shared and personal mobility vehicle.

Currently, the CEO and his team are at the Dubai Airshow, pitching their innovation to potential investors and global customers.

https://twitter.com/LuftCar_US/status/1460326919321239554?ref_src=twsrc%5Etfw

COVER: Sakshi

A Delhi court has directed registration of FIR against two directors of a city-based air charter service company for allegedly failing to provide helicopter service to a man despite receipt of money, noting that the duo had an "intention to cheat".

Additional Sessions Judge Anuj Agrawal passed the order on the revision petition filed by complainant Anis Ahmad against the magistrate's order rejecting his plea seeking registration of FIR against the duo and an employee for not providing the helicopter for his niece's wedding after taking the payment of INR 5 lakh in March 2019.

The complainant alleged that the director did not return the paid amount after cancelling the service and stopped taking his calls, following which he came to know that they have closed the office.

He further said that one of the accused also threatened him. He filed two complaints at Jamia Nagar Police Station and with the Deputy Commissioner of Police (DCP) in September and October 2019 but no action was taken.

Police later told the court that the dispute was civil and there was no inducement or cheating.

Allowing the revision petition, the Additional Sessions Judge said, “It appears that respondent No.1 and 2 being Directors were having an intention to cheat the revisionist (Ahmad) since the beginning as they did not come up with an explanation as to why no services were provided to revisionist despite receipt of the amount.”

Further, there is nothing on record to suggest that they had requisite permission from the Competent Authority to provide the helicopter services to the complainant at the relevant time as promised, the judge noted.

“Investigation by police would be required for recovery of the cheated amount, for ascertaining if the respondent had requisite permission to provide the services as promised by them and for effective investigation,” he stated.

The judge added, “Present revision petition stands allowed. The impugned order stands set aside.

The magistrate is accordingly requested to direct the concerned SHO to register an FIR under appropriate provisions of law against respondents No.1 and 2 being Directors.”

The court, however, said that no criminal liability can be attributed to the employee of the charter service company as he was cheated by the directors and not paid salary from the last six months. The judge directed the police to probe this as well.

Domestic airline SpiceJet has entered into a settlement agreement with aircraft manufacturer Boeing, the company informed the exchanges on November 17.

In a filing with the BSE, SpiceJet said it has entered a settlement agreement with Boeing wherein “Boeing has agreed to provide certain accommodations and settle outstanding claims related to the grounding of 737 MAX aircraft and its service return”.

The release further said that the agreement “paves the way for induction of efficient and younger MAX aircraft” into SpiceJet’s fleet, and “ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft”.

The newest statement comes after SpiceJet on September 13 said it entered into a settlement with CDB Aviation, a major lessor of Boeing 737 Max aircraft. Before this, the airline on August 26 also informed that it has agreed to a settlement with Avolon, another major lessor of this aircraft.

In a statement, the budget carrier said that it expects to start operations of MAX aircraft around the end of September 2021, subject to regulatory approvals. Currently, in India, only SpiceJet airline has Boeing 737 Max aircraft in its fleet.

SpiceJet is Boeing's biggest customer in the South Asian nation for the MAX planes.

India's aviation regulator, the Directorate General of Civil Aviation (DGCA) on August 26 lifted the ban on Boeing 737 Max planes' commercial flight operations after almost two-and-half years.

On March 13, 2019, all Boeing 737 Max planes were grounded by the DGCA in India after the crash of an Ethiopian Airlines 737 Max plane on March 10 near Addis Ababa which killed 157 people, including four Indians.

Later, in an order dated August 26, 2021, the DGCA said that since the orders issued by the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) in October and November last year, it "has been closely monitoring the global trend concerning un-grounding" of 737 Max planes.

A total of 34 airlines across the world have operated 1.22 lakh flights using 345 Max aircraft, since the plane was ungrounded late last year, without "untoward reporting", India's aviation regulator said.

Therefore, the DGCA stated that the operation of Boeing 737 Max planes in India is permitted "only upon satisfaction of applicable requirements for service return".

SpiceJet on November 12 reported a loss of INR 561.7 crore for the quarter ended September 2021 (Q2FY22). The company had posted a loss of INR 112.5 crore in the year-ago period. In the previous quarter (June 2021), the loss stood at INR 729 crore.

Revenue from operations came in at INR 1,301.7 crore, up 28% against INR 1,016.1 crore in the corresponding quarter of the previous fiscal. Total revenue from operations came in at INR 1342.5 crore, up 27.2% against INR 1,055 crore logged in the September 2020 quarter.

Meanwhile, Rakesh Jhunjhunwala-backed new airline Akasa Air has ordered 72 '737 Max' aircraft from US-based aerospace company Boeing to launch service in India, a statement said on Tuesday, November 16.

"Akasa Air's order includes two variants from the 737 Max family, including the 737-8 and the high-capacity 737-8-200," the joint statement by Akasa Air and Boeing mentioned.

IndiGo, one of Asia's largest budget airlines, is considering charging passengers for checked luggage as it prepares for a price war in India's cutthroat air travel market, which is showing signs of recovery after the worst of Covid.

Even after India's Directorate General of Civil Aviation ruled that carriers can start offering zero baggage and no check-in baggage fares, IndiGo, operated by InterGlobe Aviation Ltd., did not implement the so-called unbundling of fares in February, just before a deadly second wave of the pandemic hit the South Asian nation.

Regulatory caps on fares and capacity related to Covid prevented IndiGo from deciding at the time, Chief Executive Officer Ronojoy Dutta said in an interview on Tuesday, November 16.

(Image Courtesy - Business Traveller)

“We have been talking to the government about that," Dutta said. “We’re waiting for everything to settle down before we lock something."

IndiGo joins Go Airlines India Ltd., which is also looking to unbundle baggage charges from air tickets to position itself as an ultra-low-cost carrier. IndiGo’s move to make ticket prices even cheaper will intensify competition among carriers known for driving fares so low they barely, and often don’t, cover costs.

The crushing price wars have put many airlines out of business in what was one of the world’s fastest-growing aviation markets before the pandemic. 

IndiGo is “unlikely" to raise funds through a share sale to institutional investors as previously planned, with air travel in India recovering from the worst of Covid infections, Dutta said. India in October allowed airlines to operate at 100% pre-pandemic capacity domestically, but international flights remain suspended until at least November 30.

“Frankly, I don’t think we need it now because of no third wave, and revenue is coming back," Dutta said.

IndiGo, the world’s biggest customer for Airbus SE’s best-selling A320neo jets has no intention to fly routes such as London that require wide-body aircraft, Dutta said.

While the carrier mulled over wide-body operations for a long time, it has decided it won’t compete with Vistara -- a joint venture between Singapore Airlines Ltd. and the Tata Group which as a full-service carrier has a stronger foothold in the long-haul market along with Air India Ltd., Dutta said.

Even so, IndiGo will expand its international routes faster than domestic to capture the surge in traffic flowing in and out of India in the seven-hour range where there are not enough non-stop flights, including to cities including Moscow, Cairo, Tel Aviv, Nairobi, Bali, Beijing and Manila, Dutta said. International routes will account for 40% of the carrier’s capacity in five years, up from the current 25%, he said.

India’s low-cost carrier market will become crowded with billionaire investor Rakesh Jhunjhunwala’s new airline Akasa, Dutta said. State-run Air India which is being sold to the Tata Group along with Vistara have a “little space to themselves, which is good, and they’re separated from us" as they are going to operate as full-service carriers, he said.

(With Inputs from BloombergQuint)

Rakesh Jhunjhunwala-backed new airline Akasa Air has ordered 72 '737 Max' aircraft from US-based aerospace company Boeing to launch service in India, a statement said on Tuesday, November 16.

The order has been valued at nearly $9 billion at list prices. The order includes two variants from the 737 MAX family, the 737-8 and the high-capacity 737-8-200.

Mr Jhunjhunwala, known as "India's Warren Buffett", has teamed up with former chief executives of IndiGo, the country's biggest carrier, and Jet Airways to tap into demand for domestic air travel, which is nearing pre-pandemic levels as the country recovers from a devastating outbreak earlier this year.

(Image Courtesy - Airways Magazine)

The airline’s co-founder Aditya Ghosh, Chief Executive Officer Vinay Dube, Chief Commercial Officer Praveen Iyer were present at the signing of the order deal at the Dubai Air Show.

“Providing the lowest seat-mile costs for a single-aisle airplane as well as high dispatch reliability and an enhanced passenger experience, the 737 MAX will ensure Akasa Air has a competitive edge in its dynamic home market,” Boeing said in a statement.

“We are honoured that Akasa Air, an innovative airline focused on customer experience and environmental sustainability, has placed its trust in the 737 families to drive affordable passenger service in one of the world’s fastest-growing aviation regions.The 737 MAX, with its optimized performance, flexibility and capability, is the perfect airplane to establish Akasa Air in the Indian market and ensure it effectively grows its network."Stan Deal, President and CEO, Boeing Commercial Airplanes

The 737 MAX family promises a reduction in fuel use and carbon emissions by at least 14% compared to airplanes it replaces.

“We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmentally friendly company with the youngest and greenest fleet in the Indian skies.India is one of the fastest-growing aviation markets in the world with unparalleled potential. We are already witnessing a strong recovery in air travel, and we see decades of growth ahead of us. Akasa Air's core purpose is to help power India's growth engine and democratize air travel by creating an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds."Vinay Dube, Cheif Executive Officer, Akasa Air

Low-cost carrier SpiceJet also operates MAX aircraft with 13 such aircraft in its fleet and a total order-book of 205 such planes including 50 options.

The MAX aircraft was banned worldwide in March 2019 after two fatal accidents involving the aircraft type. After two-and-a-half years of grounding, the aircraft has now been permitted to resume operations with a DGCA nod received in August 2021.

Last month, SNV Aviation, which owns Akasa Air, said it expected to start flying next year after getting initial clearance from the civil aviation ministry to launch the country's latest ultra-low-cost carrier.

The Ministry of Civil Aviation had last month given a no-objection certificate (NOC) for the operation of Akasa Air in India.

India needs more than 2,200 new airplanes in South Asia valued at nearly $320 billion over the next 20 years, according to Boeing’s 2021 Commercial Market Outlook forecast.

Boeing dominates India's wide-body market of 51 planes but fare wars and high costs have led to casualties among full-service carriers, including Kingfisher Airlines in 2012 and Jet Airways in 2019, making low-cost carriers and Airbus even more dominant.

Boeing's share of India's 570 narrow-body planes fell to 18% from 35% after Jet's collapse in 2018, data from consultancy CAPA India shows. Currently, SpiceJet is the only customer for the MAX planes in the country.

Cover Image - Boeing