As 2021 draws to a close, here's a brief lowdown on everything that managed to hit the headlines

The year 2021 has been a tumultuous ride for everyone with its fair share of highs and lows. The aviation industry has been no different and hence, here's a brief timeline of all the major events that grabbed headlines in the aviation industry.

January

Boeing settles with the US Department of Justice to pay over $2.5 billion after being charged with fraud over the Boeing 737 MAX certification.

The Information

2. Sriwijaya Air Flight 182, a Boeing 737-500 crashes off the Jakarta coast killing all on board with the investigation into the incident still pending.

The Jakarta Post

3. Boeing reports its 2020 results- revenue of $58.2 billion, down from $76.6 billion the previous year, and an operating loss of $12.8 billion

February

Aero India 2021 is held at Yelahanka Air Force station in Bangalore

See Latest

2. Airbus reports its 2020 results-revenue of €49.9 billion, down from €70.5 billion the previous year, and an operating loss of €1.1 billion ($1.3 billion)

3. A United Airlines flight 328, a Boeing 777-200, suffers an uncontained engine failure of the right-hand engine over Colorado and the surrounding area. The FAA proposes modifications on all 777s with the same Pratt & Whitney PW4000 engines

Newsmobile

March

Dassault Falcon 6X makes its maiden flight

Aviation Today

April

Avelo Airlines commences operations with three Boeing 737-800 aircraft. while Interjet files for bankruptcy in Mexico.

Start-up airline Avelo | AP news

May

Dassault Aviation launches its $75 million Falcon 10X flagship, scheduled for 2025, to compete with the Bombardier Global 7500 and the Gulfstream G700

Dassault Falcon 10X

2. A Boeing 737- Ryan Air flight 4978 on a routine scheduled flight from Athens International Airport to Vilnius Airport, is diverted to Minsk National Airport on the orders of Belarusian President Alexander Lukashenko under the pretence of a bomb threat. No bombs are found.

3. Rolls-Royce unveils the world's largest engine testbed facility in the world, Testbed 80, in Derby.

Inceptive Mind

June

United Airlines places an order for 15 Boom Overture supersonic transports, which would tentatively enter service in 2029. United is expected be the first airline to fly the supersonic bird.

Euronews

2. A Boeing 737 max 10 makes its first flight from Renton Municipal Airport and landing at King County International Airport (Boeing Field) with a flight duration of 2.8 hours.

July

A converted Boeing 737-200 cargo aircraft operating as Trans Air Flight 810 ditches en route from Honolulu to Maui. Both pilots are rescued by the US Coast Guard.

Underwater remains of Trans Air Flight 810 | Energy Voice

2. An Antonov An-26 aircraft crashes near the settlement of Palana, Russia, killing all 28 people on board and an Antonov An-28 operating Siberian Light Aviation Flight 42crash-lands in a swamp in Tomsk after both engines fail. All 18 people on board survive the accident

August

The first prototype Ilyushin Il-112 transport aircraft crashes near Kubinka Airfield after an engine fire, killing all three crew members.

24newshd

2. Commercial flights to Kabul Airport resume on a limited basis, with a Boeing 767 of Utair, after the fall of Kabul to the Taliban.

3. The last US C-17 flight leaves Kabul Airport just before midnight, ending the US military airlift and the war in Afghanistan

Daily Record

September

A Qatar Airways Boeing B777-300 ER operates the first commercial international flight into Kabul since the US pullout on 30 August

CNN

October

Gulfstream introduces the 4,200 nmi (7,778 km) range G400, to be delivered from 2025, and the 8,000 nmi (14,816 km) range G800, with deliveries from 2023

Business Insider

2. Air India, along with its low-cost carrier Air India Express and 50% of AISATS, a ground handling company, is sold to Tata Sons

3. Alitalia, the flag carrier of Italy, ceases operations after 74 years. Its operations and assets are handed over to new state-owned flag carrier Italia Transporto Aereo

Media India Group

November

Dubai Airshow 2021 is held at Al Maktoum International Airport in Dubai, from 14th to 18th November.

Aviationscoop

2.  Air Lease Corporation becomes the launch customer for the A350F at the Dubai Airshow, with deliveries expected around 2026.

Cargo Facts

3. Airbus A340 makes its first-ever landing on the ice-capped runway in Antarctica

Presswire18

December

The first Airbus Helicopter H160 is delivered to All Nippon helicopter for electronic news gathering, starting in 2022

Damiano GUALDONI

2. 14 years after its first flight, Airbus bids final adieu to the A380.

NPR

Airbus Vs Boeing- who reigned supreme in 2021?

For deliveries, Boeing delivered 302 planes between January and November, with 36 customers ranging from Aeroflot to WestJet. Around two-thirds of these constituted the 737 MAX, marking the type's huge comeback after a worldwide grounding of the fleet following the two disasters in 2019.

Airbus, on the other hand, seems to have performed better with 512 deliveries made to 80 customers within the same time.

Here's how Indian aviation fared

With the year starting on a positive note, the graph quickly plummeted with the emergence of the deadly second wave. The trend continued for a while before rising again, thanks to the successful nationwide vaccination policy. While the traffic stood at the  3 lakh passengers per day mark, it was still a far cry when compared to the pre-pandemic numbers.

Mr. Jyotiraditya Scindia took over the helm of affairs at the Ministry of Civil Aviation, succeeding Mr. Hardeep Singh Puri, who was elevated to cabinet rank but was divested of the Civil Aviation portfolio. The following months would see both, capacity and fare caps, introduced by the new ministry.

PIB

With emerging variants of the covid virus and subsequent restrictions imposed on air travel imposed by various countries, international travel seems to be far away, although domestic travel seems to have picked up and is comparable to pre-pandemic levels.

Air Bubbles were set with different countries, expatriation flights were conducted and as of today, India has an air bubble arrangement with 34 countries.

The homecoming of Air India back to its real owners, The Tatas, was perhaps the biggest headline that managed to grip the country. An expression that was made almost two decades back, finally came to fruition, quite ironically at a time when aviation hit rock bottom.

EastMojo

21 months into the pandemic, and without any financial support from the government, airlines still stood tall, although some harsh measurements had to be taken here and there. flyBig started operations, Akasa managed to place an order for 72 B737 MAX aircraft and would be commencing operations soon early next year.

The Wadia family-led Go Air, re-branded itself to GO FIRST, appointing Kaushik Khona as CEO, for the second time.

Travelobiz

SpiceJet, another low-cost carrier that had been distraught with financial woes, managed to carve "SpiceXpress"  as a separate entity, with shareholder approval. The carrier is also on its way to re-activate its 737 MAX fleet.

SpiceExpress

SOURCE(s)

COVER: WNS

Sri Lanka's new government plans to sell its national airline to stem losses, part of efforts to stabilize the nation's finances even as authorities are forced to print money to pay government salaries.

The new administration plans to privatize Sri Lankan Airlines, Prime Minister Ranil Wickremesinghe said in a televised address to the nation Monday. The carrier lost 45 billion rupees (USD 124 million) in the year ending March 2021, he said just days before the nation is set to formally default on foreign debt.

"It should not be that this loss has to be borne by the poorest of the poor who have not set foot in an aircraft," Wickremesinghe said.

Sri Lanka's new government plans to sell its national airline to stem losses

"The next couple of months will be the most difficult ones of our lives," Wickremesinghe said. "We must immediately establish a national assembly or political body with the participation of all political parties to find solutions for the present crisis."

The premier pledged to announce a new "relief" budget to replace President Gotabaya Rajapaksa's "development" budget that helped stoke Asia's fastest inflation rate.

The cabinet will propose that parliament increase the treasury bill issuance limit to 4 trillion rupees from 3 trillion rupees, Wickremesinghe said, forecasting a budget deficit of 13% of gross domestic product for the year ending December 2022.

Earlier this year, the carrier posted four proposals for a wide range of aircraft types, including Airbus A330 and A350 widebodies and regional Airbus A220s.

In 2010, the government in Colombo bought back a stake in Sri Lankan Airlines from Dubai's Emirates. The national carrier, which has a fleet of 25 Airbus SE planes, flies to destinations in Europe, the Middle East as well as South and Southeast Asia, according to FlightRadar24.

During his previous tenure as Prime Minister, Wickremesinghe unsuccessfully tried to sell off the airline. Through his time in opposition, he has consistently fought for its privatization in parliament, recently criticizing the Chairman of the Committee of Public Enterprise (COPE), Professor Charitha Herath, for failing to control the airline’s finances.

Airline bosses have remained resolute that despite two years of financial losses, its latest Q1 posting has seen it return to the green with a profit of USD$1.7 million, its highest since 2006.

During his previous tenure as Prime Minister, Wickremesinghe unsuccessfully tried to sell off the airline.

With a rapidly improving aviation industry, SriLankan has already started preparations for a busy summer season, doubling flights to nearby India and increasing capacity on services across South Asia and Oceania.

State Minister of Aviation and Export Zones Development, D.V.Chanka, defended the airline’s decision, noting that SriLankan did not use government money to sustain its operations and had already downsized its fleet, reducing costs by USD 25 million. Chanka added that the procurement process would take at least a year and a half and would not use government money for the leases.

The shareholders of InterGlobe Aviation, which operates domestic airline IndiGo, on Thursday, December 30 approved a resolution seeking an amendment to the Articles of Association (AoA) of the company, some of which give one founder the first right to purchase the other’s shares in the company if the latter decides to sell.

InterGlobe’s founders Rahul Bhatia and Rakesh Gangwal have been locked in a feud over several articles in the AoA since 2019. An amendment will lift several barriers to any sale of shares by a founder to a third party. The founders own 74.44% of InterGlobe.

Rakesh Gangwal (Left) and Rahul Bhatia (Right) [Image Courtesy - Bloomberg Quint)

Chairman M Damodaran informed shareholders that the extraordinary general meeting (EGM) had been called on receipt of a joint requisition from the promoters. Later, a filing said 99.99% of shareholders voted in favour of the resolution. The resolution also indicates that the two partners have reached an understanding of the matter.

In 2020, InterGlobe’s shareholders had rejected a similar proposal by Gangwal at an EGM. Gangwal and family together own 36.61% of the airline. Based on the airline’s market capitalisation at the end of Thursday, their shares were worth INR 27,899 crore.

IndiGo's chief executive officer Ronojoy Dutta assured shareholders of the airline that the company will emerge stronger after facing nearly two years of uncertainty due to the COVID-19 pandemic.

“Domestic traffic rebounded strongly in November and December. Omicron has caused future bookings to soften, but these are still above the September levels. While international capacity is restricted, bubble flights to international destinations are performing well.During the past two years, the focus has been building the domestic network, returning inefficient planes at a rate of 45 per year and replacing them with efficient Airbus A320neo aircraft, improving levels of customer service, and growing our charter and cargo businesses. Despite the low level of revenue generation over the past two years, we can confidently state that we are emerging from the Covid-19 crisis structurally stronger as an airline."Ronojoy Dutta, CEO, IndiGo

Dutta listed various steps IndiGo took since the pandemic broke out and said the airline was structurally stronger now than it was in March 2020. He said IndiGo was on the recovery path if there was no third wave.

According to the IndiGo CEO, the airline went through turbulent times, incurred significant losses, and took debt to shore up its balance sheet. “Repairing the balance sheet is an urgent task,” he said.

Speaking at the extraordinary-general meeting (EGM) of InterGlobe Aviation, Dutta said that while at the moment, flight bookings have taken a hit given the outbreak of the Omicron variant of COVID-19, the aviation industry in India is still showing strong signs of recovery and any fall in bookings is likely to be temporary.

If the resolution is accepted, it would end the dispute between the owners Bhatia and Gangwal, who collectively hold 74.44% of the paid-up equity share capital and have been at loggerheads for more than two years now.

The resolution is expected to pass smoothly, given that both the promoters have jointly called the meeting. Once passed, it would allow either side to sell or transfer shares to a third party, without giving each other notice.

The shareholders in the EGM were required to vote on the resolution and the result of the EGM voting that took place via video conferencing would be uploaded within two working days.

The legal battle between the promoters began on July 8, 2019, when Gangwal wrote to the Securities and Exchange Board of India (Sebi), the Prime Minister’s Office and the finance ministry, seeking intervention on various corporate governance issues and the Bhatia Group’s control of the airline.

Gangwal had sought amendments to the AoA to remove rights of Bhatia’s IGE Group on the airline, and raised past related-party transactions, non-independence of the current chairman, and refusal to hold an EGM when he had requested, among other issues.

Bhatia later moved the London Court of International Arbitration (LCIA) against Gangwal. The LCIA in September said the AoA be amended and that the clause regarding the RoFR is done away with. It had given them 90 days to implement its directions. Gangwal had then moved the Delhi high court seeking directions for calling an EGM. However, the court did not allow the plea.

The particular clause in AoA says if a shareholder proposes to sell shares outside the stock exchange, he will have to first notify the other shareholder disclosing the number of shares, the proposed price, the identity of the purchaser, the proposed closing date for the transfer apart from any other material terms of the agreement between the seller and the buyer.

After its worst two years since the second world war, 2022 is looking brighter for the global airline industry. For passengers, though, the chance to travel at low cost again may prove short-lived.

In 2020 international passenger demand was less than 25% that of 2019, according to the International Air Transport Association. 2021 data isn't yet available, but the hiccups of the Delta and Omicron variants make the association's forecasts of 50% of 2019 levels look optimistic.

With international and domestic routes reopening, airlines are offering a range of special deals on airfares. These deals are partly to entice back uncertain travellers and partly to compensate passengers for costs required to travel internationally, such as fees for COVID tests.

They are likely to have a brief lifespan, as the industry comes to grips with post-pandemic realities minus the government support that enabled so many, contrary to predictions, to survive.

Now comes a reckoning, as surviving airlines seek to return to viability, repair their debt-laden balance sheets and future-proof their operations, with no guarantee they'll get the same government support when the next crisis hits.

What this may mean is abandoning the business model of wafer-thin profit margins that delivered ever-cheaper airfares from the 1970s until the beginning of 2020.

Up until the 1970s, the airline industry was highly regulated. Domestically, this was often done by governments to protect state-owned airlines.

Internationally, airfares were kept high by price cooperation through the International Air Transport Association (IATA), often described as a cartel. There were two ticket pricing levels - first-class and economy.

Until 1970 the biggest commercial jet aircraft was a Boeing 707, which could accommodate 180 passengers at a squeeze. Airfares had to be high to cover the high cost of operations (especially jet fuel). Most airlines accepted the IATA fare levels. Discounting was rare.

Then in 1970 came the Boeing 747 jumbo jet, which more than doubled flights' passenger capacity, from 180 to 440.

In the 1980s and 1990s, travel agents began to set themselves up as "bucket shops" specialising in offering discounted airfares to fill empty seats on less popular airlines.

This was how Flight Centre started. It opened its first shopfront in Sydney in 1982, followed by stores in Melbourne and Brisbane. (It now has more than 650 shops in Australia and more than 550 in 10 other countries.)

Lower costs and plummeting airfares made the IATA's fares increasingly irrelevant. With the global rise of low-cost carriers, many of which were not IATA members, IATA finally abandoned the so-called "YY" fare-setting in 2017.

Government regulation was also unwinding. Australia's two-airline policy ended in October 1990. Deregulation permitted more competitors, and airfares were driven by the market rather than set by regulatory bodies.

By 2019, a return fare between Sydney and London on a reputable airline could be bought for about 2019 for less than A$300.

This price falls depended on airlines embracing a business model based on lower profits per customer but flying a lot more customers, cutting fixed overheads by using larger-capacity aircraft.

This business model contributed to the number of global tourists increasing from about 166 million in 1970 to 1.5 billion in 2019. But it also meant airlines needed planes full of passengers to make a profit.

By 2019 the average pre-COVID profit margin per passenger on a long-haul international return flight was about US$10. It's difficult to see how running on razor-thin margins can continue to be the industry model.

In 2022 it is likely we will see a consolidation within the industry, with the airlines that survive looking to diversify into other businesses, such as catering or insurance.

Low-cost carriers may still be viable, but only by convincing customers to pay for "ancillaries" beyond the airline seat, such as in-flight snacks, extra luggage capacity or booking a hire car.

Although most airlines are committed to limiting price increases, there is no escaping the fact they have two years of massive losses to makeup and the continuing extra cost of COVID-related regulations to absorb.

Higher margins with lower passenger volumes look the more probable model.

(With Inputs from PTI)

Come January 5 and 5G broadband service begins in 46 cities in the US. Just before Christmas, the FAA released a Safety Alert For Operators (SAFO) which includes recommended action in the form of Notice To Air Missions (NOTAMs)- restrictions that could possibly curtail airline and general aviation operations in areas where 5G signals broadcasting is set to begin.

Apparently, the regulator is concerned that 5G signals could interfere with the radar altimeters that airliners, bizjets and general aviation aircraft rely on for low altitude flight and hence issued a Special Airworthiness Information Bulletin (SAIB) on the “Risk of Potential Adverse Effects on Radio Altimeters” of 5G deployment.

Fast Company

Now, the US military has joined the bandwagon asserting that the auctioned bandwidth is overly close to the frequencies used for air navigation. Several conspiracy theories have also been doing the rounds pointing to the possibility that the Federal Communications Commission (FCC) could “sell” areas of bandwidth to the highest bidder. If that were to be true, it could lead to “catastrophic failures” and “multiple fatalities”, according to a new report in Defense News

In response, the country's largest network carriers- Verizon and AT&T, agreed to temporarily pause the rollout of 5G service to help FAA buy more time to address the ongoing concerns, which reportedly, expires next week.

Representative | Aviation Today

Although the FCC says the buffer of bandwidth is large enough not to cause any potential interference, the FAA has said that it will disallow the use of many instrument approaches and any aircraft systems that rely on radar altimeter data including autoland, head-up displays and enhanced vision systems “where 5G interference is possible.”

 BDL AD AP RDO ALTIMETER UNREL. AUTOLAND, HUD TO TOUCHDOWN, ENHANCED FLT VISION SYSTEMS TO TOUCHDOWN NOT AUTHORIZED EXC FOR ACFT USING APPROVED ALTERNATIVE METHODS OF COMPLIANCE DUE TO 5G C-BAND INTERFERENCE PLUS SEE AIRWORTHINESS DIRECTIVE 2021-23-12Example Aerodrome NOTAM for airports

Below is a Sample of a NOTAM covering instrument approaches:

IAP NOTAM against impacted approaches (SA CAT I / II, CAT II, III, or RNP AR): BDL IAP BRADLEY INTL, WINDSOR LOCKS, CT. ILS RWY 06 (SA CAT I AND SA CAT II), AMDT 13A… ILS RWY 06 (CAT II AND CAT III), AMDT 38A… RNAV (RNP) Z RWY 06, AMDT 1… RNAV (RNP) Z RWY 24, AMDT 1… PROCEDURE NOT AUTHORIZED EXC FOR ACFT USING APPROVED ALTERNATIVE METHODS OF COMPLIANCE DUE TO 5G C- BAND INTERFERENCE PLUS SEE AIRWORTHINESS DIRECTIVE 2021-23-12

Reportedly, additional NOTAMSs would be issued for private airfields with GPS approaches and helicopter operations requiring radar altimeters for hover autopilot modes, search and rescue autopilot modes and heliport instrument approaches.

Having said that, it is to be noted that neither the FAA nor the FCC has data from real-world airborne testing of radar altimeter-5G interference.

SOURCE(s)

COVER: Aviation Today

AirAsia India said on Wednesday, December 29 it has paid all its dues to the Airports Authority of India (AAI) and the airline was making all payments as per credit terms on due dates from September 2021.

It was reported earlier that AirAsia India's dues to the AAI increased from INR 1.47 crore in January 2020 to INR 3.58 crore in October 2021, as per AAI's internal documents.

''We have paid all our dues as per the contract with AAI. We are making all payments as per credit terms on due dates from September and there are no dues as on date.'Operational costs always increase in proportion to the number of flights operated and guests flown. In this period, from September to today, we have paid out INR 59 crore within the due dates as per the policy of the Airports Authority."Spokesperson, AirAsia India

An airline has to pay for air navigation, landing and parking among others to the AAI, which is under the Ministry of Civil Aviation, to use facilities at its airports, numbering more than 100.

India's six major domestic carriers -- IndiGo, SpiceJet, GoAir, AirAsia India, Air India and Vistara -- owed the AAI INR 2,306.59 crore as of January 1, 2020, the AAI documents stated. These dues swelled by 14.29% to INR 2,636.34 crore by October 31, 2021, the documents mentioned.

Many airports operated by the AAI have seen losses of around INR 7600 crore in the last three financial years. The number of airports in losses increased from 102 in 2018-19 to 113 in 2020-21.

The report cites statistics revealed by the Ministry of Civil Aviation (MoCA) and says that officials blame the shutting of airports during the lockdown and low traffic in recent times as the reason for these losses.

The top three airports with the highest losses in the last fiscal year are Mumbai airport – in which the AAI has a 26% stake – at INR 331.64 crore, Delhi airport – where AAI also has a 26% stake – at INR 317.41 crore, and Chennai at INR 278.63 crore.

AirAsia India is the AirAsia Group's brand for its subcontinent operations. The low-cost carrier commenced domestic services in June 2014 and plans to grow its route network to service all Indian metropolitan centres and a selection of tier-II cities.

AirAsia India is based at Bangalore Kempegowda International Airport, with secondary hubs in Delhi and Kolkata, and operates Airbus A320 equipment.

In December 2020, AirAsia Group and TATA Group signed an agreement for TATA Group to purchase 490 million AirAsia India shares from AirAsia Group for USD37.7 million. This will increase TATA Group's stake in AirAsia India by 32.67% to 83.67% and reduce AirAsia Group's stake in the LCC from 49% to 16.33%. TATA Group also plans to increase its stake in AirAsia India from 83.67% to 100% by the end of March 2022.