Are Aircraft Management Services and Fractional Ownership the Way Forward?

Salil Arora

08 Jun 2023

As per sub-rule (3) of Rule 134 of the Aircraft Rules, 1937, no air transport service, other than a scheduled air transport service or an air transport service to which the provisions of sub rule (1) or (2) of rule 134 apply, shall be operated except with the special permission of the Central Government and subject to such conditions as it may think fit to impose. Further, Rule 134A, stipulates that no air transport service, other than a scheduled air transport service, shall be operated by an Indian air transport undertaking unless it holds a Non-Scheduled Operator’s Permit (NSOP) granted by the Central Government. The power to issue the NSOP is delegated to the Director General of Civil Aviation (DGCA) and to the Joint Director General of Civil Aviation. 

 

Non-Scheduled air transport service means an air transport service, other than a scheduled air transport service,   being operated for carriage of passengers, mail and goods, and includes charter operations.

 

Non-scheduled air transport service in India is divided into non-Scheduled Commercial and non-Commercial Categories. The carriage of passengers by a non-scheduled commercial permit holder may be performed on per seat basis or by way of chartering the whole aircraft on per flight basis, or both. There is no bar on the same aircraft being used for either purpose as per the requirement of customers from time to time. The operator is also free to operate a series of flights on any sector within India by selling individual seats but will not be permitted to publish timetable for such flights. Non-commercial operators are restricted to use aircraft for the individual owners’ requirements. 

 

Requirements for NSOP Applicant

 

The procedure and guidelines for issue of a Non-Scheduled Operator’s Permit are listed in applicable Air Operator Certification Manual (CAP3300 (for aeroplanes)/ CAP 3400 (for helicopters)). The guidelines and requirements under CAP 3400 are similar, if not the same as CAP 3300. 

 

Some of the key eligibility and procedural requirements for an NSOP applicant are as follows:

 

(a) The applicant should be a citizen of India or a company or a body corporate with:

i. Its registered office and principal place of business within India:

ii.         its chairman and at least two-thirds of its directors are citizens of India;

iii.        its substantial ownership and effective control is vested in Indian nationals.

 

Note: Foreign Direct Investment for obtaining a Non-Scheduled Operations Permit with FDI up to 74% and investment by Non-resident Indians (NRI) up to 100% is allowed through automatic route and for Helicopter services/seaplane services, wherein FDI up to 100% is allowed through automatic route subject to satisfaction of conditions of Board of Directors and the substantial ownership and effective control of the management

 

(b) The applicant shall be in possession of at least one aircraft, either by outright purchase or on lease   (without crew), which shall be registered in India and shall have a valid Certificate of Airworthiness in Normal Passenger Category.

 

(c) The Applicant shall have a minimum paid-up capital as given below:

 

Fleet Strength

 Minimum Paid Up Capital (Rs. in Crores)

Upto 2 aeroplanes/helicopters2.00
Between 3 and 5 aeroplanes/helicopters5.00
Between 6 and 10 aeroplanes/ helicopters10.00
Above 10 aeroplanes/helicopters15.00

 

 

(d) The imported aeroplane/helicopter for non-scheduled operations shall not be more than 15 years in age or shall not have completed 75 percent of its design economic life or 45,000 pressurisation cycles whichever is earlier. However, this requirement will not be applicable for Indian registered aircraft maintained in accordance with DGCA requirements.

 

(e) The following manuals in English (2 copies each) must accompany the application:

i.          Operations Manual (individual manuals and items listed below form part of the operations manual) 

ii.         Safety Management Systems Manual 

iii.        Training Manual 

iv.         Security Manual 

v.         Route Manual

vi.        Dangerous Goods Manual 

vii.       Aircraft Flight Manual 

viii.      Master Minimum Equipment List and MEL 

ix.        Maintenance Control Manual 

x.         Maintenance Schedule in respect of each Aircraft 

xi.        Weight and Balance Manual 

xii.       Safety and Emergency Procedures Manual 

xiii.      Flight Safety Manual 

xiv.       Ground Handling Manual 

xv.        Any other Manual produced by the Manufacturer in respect of each Aircraft 

xvi.       Normal and emergency checklist 

xvii.      Passenger briefing card 

xviii.     Runway analysis data 

xix.       EDTO Manual (if required) 

xx.        CAT II/ CAT III Manual (if required)

 

(f) The applicant shall provide details/CVs of the following proposed post-holders:

i.          Accountable Manager

ii.         Director Flight Operations

iii.        Director Engineering & Maintenance

iv.         Director Quality Assurance

v.         Director Safety Management System

vi.        Director Flight Safety

vii.       Director Training

viii.      Director Security

ix.        Director Cabin Safety – if applicable

x.         Director of ground Operations

xi.        Chief pilot of each fleet

 

NOTE: The above requirements are similar to that of scheduled carriers. Some concession has been given to operators having 3 or less aircraft where some limited positions may be combined. However, the Director Flight Safety shall be an independent functionary reporting directly to the Accountable Manager only. 

 

(g) The applicant shall have sufficient number of pilots and cabin crew (if required) under its own employment. In case of foreign pilots, the applicant shall apply for their Security Clearance in the prescribed format. The pilots holding licences issued by other contracting States shall be permitted to fly only after obtaining Foreign Aircrew Temporary Authorisation (FATA) from DGCA.

 

 

Certification Process

 

The certification process involves five distinct phases as stated below: 

 

(a) Pre-application - During this phase, the applicant conducts initial studies, prepares plans, makes inquiries from the DGCA in regard to the opportunities available under the existing air services agreements and seeks advice as to the validity of different proposals. The prospective applicant at this stage is required to submit a statement of intent to the DGCA outlining the proposal and apply to Ministry of Civil Aviation (MoCA) for issuance of NOC (assessment concerning the financial, economic and legal aspects). On the issuance of NOC and the request of proposed operator thereafter, the DGCA arranges for a pre-application meeting. 

 

(b) Formal application - On completion of pre-application phase if the applicant desires to proceed further then the applicant is required to submit the complete application as per the applicable Air Operator Certification Manual to the DGCA together with the fees and relevant documents to support the intended operation and this will constitute initiation of the formal application phase. The DGCA will then make a formal assessment of the completeness of the applicant’s proposal and invite the applicant for a Formal Application meeting where the details relating to the certification process would be formally discussed. Security clearance from MoCA/Ministry of Home Affairs (MHA) is a pre-requisite for issuance as well as continuation of NSOP and the NSOP would be issued only after the receipt of security clearance from MoCA/MHA. Denial/Revocation of security clearance by MoCA/MHA at any stage would result in closure of the process for issuance of NSOP.

 

(c) Document evaluation - During this phase, the DGCA will undertake a detailed scrutiny of the applicant’s manuals and other documents, which accompanied the formal application. The documentation must be complete, accurate and current to satisfy the DGCA’s requirements. Qualifications and experience of the nominees for Designated Post holders will be evaluated and the designated post holders will be interviewed. Approval/Acceptance for the same will be granted. There will be series of discussions between the DGCA and the approved/accepted post holders of the applicant at this stage in regard to establishing the validity/ acceptability of the applicant’s proposals. It should be noted that the documents shall reflect precisely the mode and manner in which the applicant intends conducting the proposed operations and once approved, they shall form a part of the understanding between the DGCA and the operator in regard to future functioning of the operator. 

 

(d) Demonstration and Inspection prior to certification - During this phase, the applicant needs to demonstrate to the DGCA that the applicant is in a position to conduct the proposed operations in accordance with the procedures detailed in the documents/ manuals reviewed during the previous phase utilizing the personnel/ facilities/ equipment identified in the formal application. Aircraft, maintenance facilities and arrangements will be inspected. Training facilities, programmes and training personnel will be evaluated. Company’s organizational structure, channels of communication, delegation of powers, financial strength and sources of funding will be subjected to detailed scrutiny to ensure that the company has sufficient resources, effective arrangement and control to satisfy its obligations. Facilities for flight operations, ground handling, facilities and services for passenger, baggage and cargo handling including dangerous goods and security arrangements would be evaluated. Flight, cabin and technical crew, operations and maintenance staff, flight operations officers, examiners/ flight engineers and load/ trim personnel, as applicable, will also be assessed. If the DGCA is satisfied with the above arrangements, proving flight(s) will be conducted to one or more destinations of intended operations, as determined by the DGCA. This phase may reveal the need for some operational changes, which in turn may require the applicant to make amendments to the documents originally submitted. All elements must be satisfactorily completed before proceeding to the certification phase. During this phase, administrative action to formally approve the, the Aircraft, facilities and procedures specified in the Operations Manual, CAME, Training & Checking organization will also be undertaken. 

 

(e) Certification - When all the previous phases have been satisfactorily completed, the DGCA will issue the Air Operator’s Certificate/Permit and the associated Operations Specifications.

 

Reasons for slow growth of non-scheduled air transport service in India

 

Following are the reasons that can be attributed to the slow growth of non-scheduled air transport in India:

 

(a) Cost Implications – as the certification standards are similar to those required by scheduled operators, each non-scheduled operator has to employ individual manpower, recruit individual post holders and have exclusive infrastructure to meet the certification standards. This has serious cost implications, especially for small operators.

 

(b) Documentation - DGCA approved documentation (which includes twenty manuals) forms a large part of the certification process and every operator has to do this individually which is very time and cost consuming.

 

(c) Individual contracts - Each operator has to have individual contracts with the vendors (for fuel, training spares etc.) which restricts volume based discounts and drives up the costs.

 

(d) Engineering and Maintenance - Airworthiness compliance rules necessitate approved individual documentation, manpower, infrastructure, inventory control and various other requirements for each operator, again driving up the cost of operations.

 

(e) Pressure on Regulatory Authorities - From initial certification to continuing airworthiness, operational and security compliance, regulatory agencies like the DGCA, MHA, MOF etc are busy dealing with operators who have nearly identical regulatory requirements to follow. However, as it is a regulatory requirement, the application of each applicant has to be approved by various agencies which results in ineffective use of valuable government resources.

 

 

Aircraft management services and fractional ownership of aircraft

 

(a)  Aircraft Management Services

 

In the most general terms, aircraft management refers to services related to managing and maintaining a business aircraft. Aircraft management as a concept simply means that the owner hands over his aircraft to an organisation, normally called an Aircraft Management Company, to handle all important functions required keeping the aircraft flying while adhering to all rules/regulations of the state. An aircraft management company usually provides the following services to the aircraft owner for a fee:

a.         Aircraft Acquisition

b.         Aircraft Certification and regulatory compliance

c.         Flight schedule management

d.         Ground handling

e.         Aircraft Maintenance and spare procurement

f.          Crew support and management

g.         Charter Management

h.         Training

i.          Finance, Revenue and Accounts

j.          Insurance of aircraft and crew

 

Hence, the aircraft management company provides a single umbrella to the owner for the operation of his aircraft without the need to set up his own manpower and infrastructure incurring heavy costs. The aircraft management fee charged by the companies is much lower than the owner’s costs of having an individual set up. Aircraft management companies are widely prevalent in the US, Europe and other countries worldwide. 

 

FAA allows aircraft management companies to enter into contracts with owners to manage their aircraft for a fee. For non-commercial operations, the rules are framed under FAR 91 and for commercial under FAR 135. FAR 91 is more liberal as far as regulatory compliance is concerned and the operational control largely remains with the owner. FAR 135 for commercial operations is stricter where the Aircraft Management Company is accountable to the FAA for regulatory compliance. The FAA oversight is far more restrictive and detailed under FAR 135. FAA also allows the aircraft to be simultaneously operated under FAR 91 and 135, depending upon the nature of a particular flight, whether commercial or non-commercial. 

 

In India, presently there is no provision for a different owner operator and an owner cannot import an aircraft and hand it over to an aircraft management company directly. He has to import it under either a commercial or non-commercial category, complete the certification process, obtain an AOP and then sell it or lease it to the aircraft management company for them to manage the aircraft. Needless to say, in absence of any guidelines, the aircraft management company also has to have its own Air Operators Permit to be able to induct other aircraft and operate them. This whole process imposes huge costs on the owner, the primary reason why very few business aircraft are being imported into India.

 

(b) Fractional ownership of aircraft 

 

Fractional Ownership of aircraft is an arrangement in which multiple owners share the use and costs of purchasing and operating an aircraft. Several management companies provide fractional ownership programs for aircraft, including NetJets, Flexjet, PlaneSense and AirSprint. Alternatively, owners can join together to purchase their own aircraft, independently of a larger management company.

With fractional aircraft, owners buy a share of an aircraft, rather than an entire aircraft. The price is pro-rated from the market price of a full aircraft. Owners then have guaranteed limited access to that plane or a similar one in the operator's fleet proportional to the size of the share. Fractional owners pay a monthly maintenance fee and an occupied hourly operating fee.

As defined in Title 14 of the Code of Federal Regulations (14 CFR) part 91 subpart K (part 91K) published by FAA, a fractional ownership program must contain all of the following elements: 

  1. Single program manager who provides aviation expertise and management services, 

 

For shared aircraft that are part of a large management company fleet, owners have access to the full fleet of planes and may upgrade or downgrade for specific flights.

 

The depreciation benefit of single asset (aircraft) are spread across multiple companies or owners. This way, all Buyers/Owners can potentially write off their investment (fractional investments) in aircraft within 5 to 6 years, making it attractive for Buyers/Owners. Availing of depreciation by fractional owners is allowed in USA and Europe, which has resulted in growth of huge fleets and thousands of jobs in the industry.

 

Globally, the largest non-scheduled aircraft operators follow the models of aircraft management and fractional ownership services. These two are the most popular and high growth models. Notable examples of such operators are – NetJets- 600+ aircraft, Lux Aviation- 225+ and Tag Aviation- 80+ that are spread across several State registries. 

 

In USA, Regulation of Fractional Aircraft Ownership Programs and On-Demand Operations, 2003 defines fractional ownership programs and their various participants, allocates responsibility and authority for safety of flight operations for purposes of compliance with the regulations, and ensures that fractional ownership program aircraft operations maintain a high level of safety.

 

(c) Need for aircraft management services and fractional ownership in India

 

The Civil Aviation Minister during the Heli India Summit held in October 2022 had announced that civil aviation ministry will issue guidelines on fractional ownership model to promote charter flights as fractional ownership will lower the barrier on the cost of acquisition of helicopters and aeroplanes through pooled capital by multiple owners. The guidelines are yet to be made public and given the need to promote non-scheduled operators which have not grown much compared to the scheduled operations in India, there is an urgent need to lay down clear guidelines and rules for aircraft management companies and fractional ownership in India. 

 

The benefits would be considerable as follows:

 

Lower cost of Aircraft and Operations: Much smaller upfront capital deployment and the owner(s) would not have to have his own expensive manpower and infrastructure to meet the current regulatory requirements. The aircraft management company can have multiple number and type of aircraft with common manpower and infrastructure, lowering operating costs. 

 

Pooling of Resources:  The aircraft management company would have a pool of manpower, including flying crew and Engineers, which it can use across the fleet, increasing efficiency, despatch reliability and safety. The company would have a single, cohesive organisational structure ensuring better safety oversight, coordination, communication and overall regulatory compliance. 

 

Reduction in the Number of Operators:  Aircraft management companies would significantly reduce the number of operators. This would limit the touch points for regulatory inspectors, reducing their work pressure and releasing them for better supervision and safety oversight. 

 

Increase in Revenue:  Aircraft management companies and fractional ownership would give a boost to aircraft purchase and import activity. This would serve to increase the tax revenue to the government significantly through much higher percentage of use by pooling and joint ownership of aircraft and from taxation revenues from allied services - airport usage charges, fuel offtake, MRO work etc.

 

 

(d) Changes required for aircraft management services and fractional ownership to be successful in India 

 

A positive policy statement from MoCA is needed to encourage these business models to take root in India. And policy must be followed up downstream by adjusting regulatory frameworks in every government department that impacts functioning, be it MoF, customs, GST, DGCA, etc. Such action will also send a positive signal to foreign investors, lenders, finance/leasing companies, and international aviation services companies to enter India. Some of the regulatory changes that may be required are as follows:

 

I.       DGCA

 

Different owner operator concept to be recognised and issue guidelines in respect of fractional ownership – the concept of different owner and operator concept is required to be recognised and Air Operators Permit should only be required by the operator of the aircraft. Also, the guidelines for qualifying as a fractional ownership program, operational control responsibilities of fractional owners and Aircraft Management companies and regulatory safety standards for operations under fractional ownership programs, including management operations, maintenance, training, crewmember flight and duty requirements, and others should be issued.

Polling of resources - cross utilisation of the crew and resources of one operator by another operator to be allowed.

Paid up capital requirements to be reduced – capital requirements to be reduced to allow larger participation and ownership base.

No restriction on change in shareholding pattern – currently the DGCA requires that any change in the shareholding pattern of the Company of 10% or more than 10% shall not be effected, unless the security clearance is obtained from Ministry of Home Affairs through Ministry of Civil Aviation. This requirement should be deleted in order to allow open sale and purchase of fractional ownership.

 

II.      GST

 

GST on import - The GST of 28% on import of aircraft under non-commercial (private) category should be rationalised and made comparable with aircraft other than for personal use (currently attracting GST of 5%). 

GST on purchase - Purchase of an aircraft within the country, i.e. and Indian registered aircraft being sold to an Indian buyer within the country attracts a GST of 5% if the end use is for commercial operations, however the GST is still 28 % in case the aircraft is purchased for private operations. This again is required to be rationalised and made comparable.

 

III.     Income tax 

 

Depreciation – amendment required in Section 32 of the Income Tax Act, 1961 to allow for shared depreciation of a single asset owned by multiple companies. 

Minimum or no tax on sale of fraction shares – minimum or zero tax should be imposed on sale of fraction shares in the company owning the aircraft.

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Ryanair Cancels 400 Flights Due French ATC Strike

Abhishek Nayar

07 Jun 2023

The skies over France were once again shrouded in uncertainty as French air traffic controllers went on strike, bringing the total number of strike days this year to more than 40. The ongoing industrial action has had a tremendous impact on the aviation sector, with Ryanair, the well-known low-cost carrier, suffering the brunt of the disruptions.

The History of Air Traffic Controller Strikes

French air traffic controller strikes have become a discontented recurring incident in recent years. The controllers' objections, which range from concerns about working conditions to proposed changes to retirement benefits, have driven their concerted action. Similar strikes have happened in the past, causing the airline sector and customers to face a storm of cancelled flights, delays, and disrupted travel plans. The frequency and duration of these strikes highlight the need for a long-term solution that answers controller concerns while minimizing interruptions to the aviation industry.

Flight Cancellations on Ryanair

Due to the ongoing strike by French air traffic controllers, Ryanair had to cancel approximately 400 flights today. This equated to around 12.5% of the airline's operations, demonstrating the magnitude of the disruptions caused by the strike. It should be noted, however, that the bulk of the impacted flights were those that were planned to fly over French airspace but were not bound for or originated from French airports.

Criticism by Ryanair CEO

Unsurprisingly, Ryanair's outspoken CEO, Michael O'Leary, did not mince words in expressing his displeasure with the cancellations. He seized the occasion to lambaste the European Commission for neglecting to address the present labor dispute and reduce its impact on airlines and customers: "People flying across France are having their flights cancelled unnecessarily because the European Commission... will not take action." O'Leary stressed that the majority of the flights affected were overflights, which are flights that pass through French airspace on their way to their ultimate destinations. This underlines the problem of flight interruptions caused by aircraft with no direct connection to France.

Focus on Overflights

Overflights are critical in determining the degree of disruption caused by the strikes. These aircraft, which pass over French airspace without taking off or landing in France, account for a sizable proportion of the impacted flights. In the case of Ryanair cancellations, this was the case for the vast majority. This distinction is critical because it illustrates that the strikes' influence extends beyond flights to and from French airports to the broader European airspace network.

Filing a Petition

Ryanair recently presented a petition signed by over 1.1 million disgruntled customers, requesting that the Commission preserve France's overflights, as it has done in Spain, Italy, and Greece. O'Leary expressed his displeasure with the airline's ongoing disruptions, which have resulted in families missing holidays and other issues. "Today, we are urging the Commission to take action to protect overflights." We support ATCs' freedom to strike, but if they do, cancel all national flights. There's no reason why flights to Orly and Charles de Gaulle should not be cancelled." The petition to the European Commission asks that all overflights be safeguarded and that any delays or cancellations affect aircraft beginning and finishing in France.

Ryanair also requested that binding arbitration be needed prior to strike action, that a 21-day notice of strike action be enforced, and that a 72-hour notice of employee involvement in strikes be necessary. The petition had just over 150,000 signatures in mid-April, but now that it has surpassed one million, the European Commission must formally evaluate it. French ATC strikes impacted almost 500,000 Ryanair customers in three months when the petition was formed. O'Leary was blunt in his criticism of the Commission's present leadership, saying, "The Commission dislikes taking action. This commission, chaired by von der Leyen and Adina V?lean, the transport commissioner, is particularly ineffective. They haven't done anything in three years." Today, Ryanair, in classic Ryanair tradition, launched a satirical film directed at the European Commission.

Conclusion

The French air traffic controllers' strike has once again paralyzed the aviation industry, with Ryanair reporting significant flight disruptions. Ryanair CEO Michael O'Leary's forthright criticism reflects the difficulties felt by airlines when interruptions occur due to strike action. The emphasis on overflights accentuates the strikes' broader impact, which extends beyond flights originating or terminating in France. As customers and travellers experience cancellations and delayed travel plans, efforts to find a solution must be prioritized in order to establish a more stable and dependable aviation system.

With Inputs from Independent

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Emirates Wants Increased Bilateral Flying Rights

Abhishek Nayar

07 Jun 2023

Air travel is critical in today's interconnected world for stimulating economic growth, enabling commerce, and connecting people across continents. Bilateral flying rights, also known as air traffic rights or air transport agreements, play an important role in regulating the number of flights and seat capacity available between nations.

The Importance of Bilateral Flying Rights

Bilateral flying rights provide the basis for international air services, allowing carriers to conduct scheduled flights between two nations. These agreements specify the number of flights, seat capacity, and landing rights provided to each country's carriers. Bilateral agreements that regulate air traffic enable fair competition, boost economic progress, and improve global connectivity.

Seat Capacity of Emirates Airlines in India

Despite India's impressive economic growth, Emirates Airline has not raised its passenger capacity in the nation since 2015. Given the increasing demand for travel between India and Dubai, this is a major worry for the airline. Emirates, as one of the world's top airlines, aspires to address the demands of customers while also supporting the two countries' thriving commercial connections. Emirates can operate 65,000 seats from Dubai to India in each direction every week.

India's Economic Growth

In recent years, India's economy has grown rapidly, making it one of the world's fastest-growing major economies. The country's expanding middle class, booming trade, and increasing tourism have all led to an upsurge in air travel demand. As the Indian economy develops, airlines must adapt and provide enough air transport services to meet the needs of this expanding market.

The Government's Stance on Bilateral Flying Privileges

Despite India's economic success, the government has been wary of granting multinational carriers further bilateral flying privileges. This strategy attempts to safeguard the local aviation sector while also encouraging the expansion of Indian airlines. While this strategy benefits domestic airlines, it may limit the development potential of international carriers such as Emirates, affecting their capacity to satisfy customer demand effectively. Civil Aviation Secretary Rajiv Bansal stated in March that India had no intentions "as of now" to grant extra seats to Middle Eastern carriers. Emirates President Sir Tim Clark stated that the Indian government takes a sectoral strategy. Indian airlines can fly from wherever in India to Dubai, but " we can only go to the designated points of the Indian government allow us to do that." "That is fundamentally ineffective. But that's the way things are. "We've approached the Indian government several times, and their response has always been the same: no," he said.

Challenges Faced by Emirates

Due to restricted bilateral flying privileges in India, Emirates Airline confronts a number of obstacles. The airline's current seat capacity limits limit its potential to expand operations and provide additional flights to Indian passengers. As a result, Emirates may lose market share to competitors who have received larger seat capacities and better agreements.

The Importance of Increasing Bilateral Flying Rights

There is an urgent need for enhanced bilateral flying rights between India and Dubai to solve the issues encountered by Emirates Airline and other international carriers. Both nations can unlock the full potential of their air transport sectors, handle rising passenger demand, and drive economic growth by providing extra seat capacity. This would assist not just airlines but also tourism, commerce, and commercial relationships between India and Dubai.

Benefits of Increased Bilateral Flying Rights

Increased bilateral flying privileges would benefit both countries in a variety of ways. It would improve connectivity, allowing more people to travel for work or pleasure. A better air transport network would boost trade by allowing for faster movement of goods and services. Furthermore, increasing flights would offer more employment opportunities, assist local companies, and contribute to India's and Dubai's overall economic development.

Impact on Tourism and Trade

Tourism and trade are critical components of India's economic ties with Dubai. By increasing bilateral flying rights, more Indian visitors would be able to visit Dubai's numerous attractions, contributing to the expansion of the tourism industry. Simultaneously, Indian enterprises would have improved access to global markets, encouraging exports and imports and improving bilateral economic connections.

Overcoming Regulatory Hurdles

Stakeholders must resolve regulatory hurdles in order to improve bilateral flying rights. Open and productive conversations between the governments of India and Dubai, as well as industry experts and airlines, can help resolve these issues. By encouraging collaboration and understanding, both sides may work towards building a mutually advantageous air transport agreement that fosters airline expansion while also respecting the interests of the domestic aviation industry.

Conclusion

Increased bilateral flying rights between India and Dubai are critical for satisfying rising air travel demand and promoting economic growth. The proposal for increased seat capacity by Emirates Airline is consistent with the changing dynamics of the Indian market. By extending these benefits, both nations may open up new avenues for commerce, tourism, and commercial engagement. It is critical that parties participate in constructive discourse and strive towards the establishment of a mutually advantageous air transport agreement that allows for increased connectivity and economic growth.

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Boeing Discovers New Issues with 787 Deliveries While Revealing Information on the Increased Weight of 787-8 and 787-10

Abhishek Nayar

07 Jun 2023

Continuous innovation is required in the dynamic world of aviation to fulfil the ever-evolving requirements of airlines and passengers. Boeing, one of the world's premier aircraft manufacturers, has presented an innovative concept to improve the capabilities of its famous 787 Dreamliner series. The concept involves increasing the aircraft's gross weight, allowing for additional capacity and improved performance. In recent news, it was also reported that over 100 Boeing 787 Dreamliners slated for delivery may suffer delays owing to a production fault that was recently discovered. This development has alarmed the aviation industry and consumers, who are eagerly awaiting the arrival of these state-of-the-art aircraft.

The History of Boeing's 787 Dreamliner

The Boeing 787 Dreamliner is a cutting-edge aircraft noted for its superior technology, reduced fuel consumption, and passenger comfort. Because of its long-range capabilities and revolutionary design, the Dreamliner has acquired substantial appeal among airlines worldwide since its launch. It has transformed air travel by improving passenger experiences while lowering airline operational expenses.

Boeing's Proposal for Increased Gross Weight (IGW)

In 2019, Boeing approached prominent airlines, including Qantas and Air New Zealand, with an appealing proposition: the notion of a 787 Dreamliner with increased gross weight (IGW). This idea aims to increase the aircraft's carrying capacity and broaden its capabilities. Boeing intended to add 4.6 metric tons of capacity to the 787-9 type and 6.4 metric tons to the larger 787-10 variant, according to Darren Hulst, vice president of Commercial Marketing. This increase in maximum take-off weight (MTOW) would add 12,000 pounds (5443 kilograms) to the largest 787. Boeing indicated that 787 manufacturing will expand to four per month, with a potential increase to five per month by the end of 2023. The manufacturer has been forced to halt delivery of the aircraft type in recent years due to a variety of concerns. The most recent problem came in February 2023, when a supplier-side analytical mistake involving the front pressure bulkhead on the 787 led the business to postpone deliveries for several weeks. The Federal Aviation Administration (FAA) of the United States (US) has given the planemaker permission to resume 787 deliveries to customers in March 2023.

Advantages of Increasing Capacity

The introduction of the 787 Dreamliner IGW variant provides various benefits to both carriers and passengers. For starters, additional capacity allows airlines to transport additional passengers or cargo on every flight, increasing revenue possibilities. The greater weight-carrying capability provides airlines with fresh chances to extend their route networks and meet rising demand. Furthermore, the upgraded 787s can have longer range capabilities, allowing carriers to explore hitherto unattainable long-haul routes. This enhanced flexibility in flight routing improves connection across areas, promoting economic growth and making travel more convenient for passengers.

Boeing 787 Dreamliners: Delay in Delivery

Newly Discovered Manufacturing Issue

Boeing officially disclosed the existence of a production issue that might delay the delivery of around 100 Boeing 787 Dreamliners. While the specifics of the problem have not been made public, it has caused widespread alarm in the aviation world.

Stabilizer Problem

The discovered issue is inside the aircraft's stabilizer, which is critical to maintaining the airplane's balance and stability during flight. The impacted component in manufacturing is produced by a supplier rather than Boeing. However, the firm stated that the attachment fitting is installed on the horizontal stabilizer of the Dreamliner at a Boeing plant in Salt Lake City, Utah. The horizontal stabilizer, which is critical to the aircraft's aerodynamic balance, is placed at the back of the plane, immediately beneath the tail. Because the stabilizer is a crucial component that assures safe and smooth operations, any issues must be addressed quickly and effectively.

Boeing's Response and Commitment to Repair

Boeing, as a responsible aircraft manufacturer, has taken quick measures to rectify the stabilizer problem. Customers and regulatory authorities have been guaranteed that all impacted aircraft will be thoroughly repaired before delivery. This promise indicates Boeing's commitment to maintaining the industry's highest safety standards.

Regulatory Involvement and Safety Precautions

The Federal Aviation Administration (FAA), as well as other important regulatory authorities, were swiftly alerted to the Boeing 787 Dreamliner production issue. The FAA is critical to maintaining commercial aircraft safety and airworthiness. Before permitting the impacted aircraft to return to service, they will closely monitor Boeing's repair procedure and ensure that all essential steps are followed to remedy the issue.

The Challenges and Uncertainties of the Arrival of Enhanced 787s

Although the notion of an increased gross weight on the 787 Dreamliner looks promising, there are a number of problems and unknowns that must be handled. One of the main worries is that more technical and structural adjustments will be required to support the increased weight. Boeing's engineering team must guarantee that the structural integrity, performance, and safety standards of the aircraft are not jeopardized in any manner. Furthermore, the certification procedure for the modified aircraft may include time-consuming and complex testing and regulatory clearances. These variables add to the uncertainty surrounding the upgraded 787s' exact arrival timeline. While Boeing is dedicated to moving forward with this concept, the industry is anxiously awaiting additional developments.

The Impact on Airlines and Passengers

The impact on airlines and customers will be considerable if the upgraded 787 Dreamliners become a reality. Airlines will be able to optimize their operations by taking advantage of the improved capacity and range capabilities of the aircraft. This can result in increased profitability and client happiness. Passengers, on the other hand, will benefit from additional seating capacity, which may result in lower ticket rates owing to economies of scale. Furthermore, the IGW variant's enhanced range may permit direct flights on longer itineraries, removing the need for layovers and shortening passenger travel time.

Conclusion

Boeing's proposal for increasing the 787 Dreamliner's gross weight is a good step in the aviation sector. The ability to increase the aircraft's capacity and range opens up new opportunities for airlines and customers alike. However, the difficulties and uncertainties connected with putting this notion into action should not be disregarded. While the aviation industry waits for future adaptations, the launch of improved 787s might change air travel by enabling more efficient, cost-effective, and enjoyable journeys.

The recently discovered production issue with the Boeing 787 Dreamliner stabilizer caused concerns and led to delays in the delivery of approximately 100 aircraft. Boeing has responded immediately to the issue, emphasizing its commitment to safety and customer satisfaction. The engagement of regulatory organisations, such as the FAA, guarantees that the appropriate steps are taken to remedy the problem and assure the airworthiness of the impacted planes. While the situation is definitely difficult, Boeing's attempts to resolve the issue and properly communicate with its consumers will contribute to a happy outcome.

With Inputs from AeroTime, Reuters

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Emirates to Acquire up to 150 Widebody Aircraft

Abhishek Nayar

07 Jun 2023

In a recent address at the IATA AGM, Tim Clark, the President of Emirates, discussed the airline's strategic plans for the future. One of the key highlights of his speech was his intention to bolster Emirates' order book with a substantial number of widebody aircraft.

Emirates' Expansion Plans

Emirates has long been known for its ambitious growth strategy and its commitment to maintaining a young and modern fleet. By adding more widebody aircraft to its order book, the airline aims to further enhance its global connectivity, expand its route network, and cater to the increasing demand for air travel.

The Importance of Widebody Aircraft

Widebody aircraft play a crucial role in the long-haul operations of airlines, providing superior passenger comfort and increased cargo capacity. These aircraft are designed to transport a significant number of passengers across long distances efficiently. With their spacious cabins, widebody aircraft enable airlines like Emirates to offer exceptional in-flight experiences, ensuring passenger satisfaction. Moreover, widebody aircraft are capable of carrying substantial amounts of cargo, making them indispensable for the transportation of goods and fostering international trade. The ability to carry both passengers and cargo simultaneously gives airlines a competitive advantage, allowing them to maximize revenue opportunities.

Potential Order

Speaking at the International Air Transport Association (IATA) Annual General Meeting (AGM), the President of Emirates, Tim Clark, confirmed the airline's intentions to strengthen its order book by acquiring additional widebody aircraft. This move reflects Emirates' ambitious expansion plans and recognition of the value of widebody aircraft in its operations. With the possibility of ordering up to 150 widebody aircraft, Emirates is exploring options from both Airbus and Boeing, signaling potential growth opportunities for the airline. The order might be announced as soon as this month, potentially in reference to the Paris Air Show beginning June 19, 2023, or the Dubai Airshow slated for November 20, 2023.

Clark did not disclose any specifics regarding the purchase, such as the aircraft type or whether it would go with Boeing or Airbus, but did say that the airline is considering the Airbus A350, the Boeing 777X, and the 787. Emirates ordered 50 Airbus A350-900 aircraft and 30 Boeing 787-9s during the Dubai Airshow in 2019. However, the airline exercised its “substitution rights by converting 30 777 aircraft into 30 787-9s,” the announcement by Boeing read at the time. The latest orders and delivery statistics from Airbus and Boeing show that Emirates had the following aircraft on order: 50 Airbus A350-900s, 30 Boeing?787-9s, 115?777X, and five 777Fs. Emirates' most recent order was for five 777F freighters in November 2022 from Dubai International Airport (DXB).

Emirates' Current Fleet

Emirates currently operates one of the largest fleets of widebody aircraft in the world, comprising Airbus A380s and Boeing 777s. The A380, known for its iconic double-decker design, offers unparalleled passenger capacity and comfort. The Boeing 777, on the other hand, is known for its versatility, fuel efficiency, and range. By consistently updating its fleet and embracing the latest technological advancements, Emirates ensures its passengers have access to state-of-the-art aircraft, innovative amenities, and cutting-edge inflight entertainment systems. According to ch-aviation.com statistics, Emirates currently operates 119 Airbus A380, 10 Boeing 777-200LR, and 124 Boeing 777-300ER in the passenger sector, with 11 Boeing 777F and a single wet-leased Boeing 747-400F from Kalitta Air dedicated to cargo services.

Factors Influencing Emirates' Order Book

Several reasons contribute to Emirates' intention to increase its order book with more widebody aircraft. Firstly, the predicted post-pandemic rebound in the tourism sector is likely to result in a boom in demand for air travel. Emirates hopes to be well-positioned to cater to this rising demand by extending its fleet capacity. Additionally, Emirates acknowledges the need to replace older aircraft with more fuel-efficient models to reduce its environmental footprint. The airline can improve its operational efficiency and contribute to sustainability efforts by purchasing newer widebody aircraft.

Implications for the Airline Industry

Emirates' decision to increase its order book has far-reaching implications for the airline industry as a whole. It demonstrates the airline's confidence in the recovery of the travel industry and its commitment to remaining at the forefront of global aviation. Furthermore, a potential order for widebody aircraft would benefit both Airbus and Boeing, giving the aircraft manufacturing sector a much-needed boost. Moreover, Emirates' expansion plans will create opportunities for various stakeholders, including suppliers, airports, and the tourism industry. The improved connectivity resulting from the extension of Emirates' route network will help economic growth, commerce, and tourism in numerous destinations worldwide.

In conclusion, Emirates' announcement to expand its order book with more widebody aircraft demonstrates the airline's commitment to expansion and its appreciation of the need to invest in contemporary fleet assets. Emirates strives to deliver an exceptional travel experience to its customers while contributing to the global aviation industry's recovery and sustainable future by growing its capacity while maintaining a young and efficient fleet.

With Inputs from AeroTime

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IATA DG Predicts a Net Profit of USD 9.8 billion This Year Reported by The Airline Industry

Radhika Bansal

06 Jun 2023

The airline industry is expected to record a net profit of USD 9.8 billion this year as passenger traffic is rising and local economies are reviving, IATA said on Monday, June 5.

Willie Walsh, Director General of the International Air Transport Association (IATA), said that despite economic uncertainties, people are flying to reconnect, explore and do business. "Latest data shows that passenger traffic is at over 90% of 2019 level". Speaking at the IATA Annual General Meeting here, he said airports are busier, hotel occupancy is rising, local economies are reviving and the airline industry has moved into profitability.

The airline industry is expected to rake in revenues of USD 803 billion and a net profit of USD 9.8 billion this year. Airlines will make an average of USD 2.25 per passenger, he said. While the aviation industry is recovering after the pandemic, there are still challenges like cost pressure and supply-chain issues. He also made a strong pitch for having global standards for a Sustainable Aviation Fuel (SAF) book and claim system to help reduce carbon emissions.

While addressing the Annual General Meeting of the International Air Transport Association (IATA) here, Walsh also flagged concerns about supply chain issues that are raising costs and limiting airlines’ ability to deploy aircraft. He also pointed out that decarbonising aviation is a serious issue and governments must not be allowed to use it to shore up exchequer finances.

He noted that airports are busier, hotel occupancy is rising, local economies are reviving and the airline industry has moved into profitability. The airline industry is expected to rake in revenues of USD 803 billion and a net profit of USD 9.8 billion this year. Airlines will make an average of USD 2.25 per passenger, he said.

IATA is a grouping of more than 300 airlines, including various Indian carriers. While the aviation industry is recovering after the pandemic, there are still challenges like cost pressure and supply chain issues. Walsh said Original Equipment Manufacturers (OEMs) have been far too slow in dealing with supply chain blockages that are both raising costs and limiting our ability to deploy aircraft.

Emphasis on More SAF Production

"Airlines are beyond frustrated. A solution must be found," he added. Stressing the need for ways to reduce carbon emissions, Walsh said SAF will be the biggest contributor to net zero success. While noting that there is a need to increase the number of pathways for SAF production and diversify feedstocks while maintaining their sustainability credentials, Walsh said unfortunately, politicians have not made good on their COP 26 promise to stop financing fossil fuels.

"The US approach to SAF is the most advanced with a system of tax credits to drive up production levels. This will be more effective than purchase mandates being considered as far and wide as Singapore, India and Europe. When there is not enough supply, a purchase mandate will drive prices up, stall innovation and limit competition long before supply increases. And if an early policy decision is needed, it is to establish global standards for a SAF book and claim system that can fairly allocate SAF credits with no double counting," he said.

Just as the location makes no difference on the impact of CO2 emissions, Walsh said it has no impact on where SAF is uplifted and used either. "A global approach to book and claim for SAF credits will help facilitate economies of scale in SAF production. And it will avoid the long-distance shipping (or even importation) of SAF, which would only degrade its climate credentials," he pointed out.

According to him, getting the basics of energy transition done is important — production incentives, more diversified production pathways and a book and claim system.

Last month, India said the International Civil Aviation Organization (ICAO) should continue to be guided by "common but differentiated responsibilities" in the efforts to achieve net zero carbon emissions for the aviation sector. India is one of the fastest-growing and third-largest civil aviation markets in the world. "Today's SAF production is less than 0.1% of what we need for net zero. But the trend is positive... every drop of SAF ever produced has been purchased and used. The problem is insufficient production capacity to meet demand," he said.

In 2022, SAF production tripled to 300 million litres and airlines used every single drop costing almost USD 350 million. "With the right supportive policies, reaching 30 billion litres by 2030 is challenging but achievable. That would be about 6% of the 450 billion litres of annual production capacity we need in 2050," he noted.

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