To give impetus to air travel, Union Minister for Civil Aviation, Jyotiraditya Scindia has written a letter to 22 States/ UTs urging them to rationalize VAT on ATF across all airports in States within the range of 1% to 4%. He has asked them to take forward common intention to boost air travel and connectivity in State to accelerate its economic development.
The price of ATF is a major component of the operating cost of airlines with that, the tax on ATF contributes significantly to the ATF price. Addressing this issue would enable a force multiplier effect concerning air connectivity in states.
Citing examples of progressive states such as Kerala, Andhra Pradesh, Meghalaya, Nagaland, Sikkim and Telangana, the Minister wrote that they have brought down the VAT to 1% and even below. As a result, they have seen a substantial jump in the number of aircraft movements in their states.
The price of ATF is a major component of the operating cost of airlines with that, the tax on ATF contributes significantly to the ATF price
For example, the Government of Kerala has brought down VAT on ATF from 25% to 1%. Subsequently, the number of aircraft movements at Thiruvananthapuram airport increased from 21,516 flights to 23,566 flights in a span of 6 months ie an increase of 2050 aircraft movements post-reduction of VAT. Similarly, aircraft movements at Hyderabad saw a rise from 76,954 flights to 86,842 flights in a span of 6 months i.e. an increase of 9888 aircraft movements after the reduction of VAT on ATF from 16% to 1%. Many other states, such as Andhra Pradesh, Chattisgarh, Nagaland, Orissa, Punjab and Sikkim have followed suit.
The Minister brought to the attention of the states that air connectivity directly promotes tourism growth, output growth and employment generation, in addition to various indirect benefits to the economy. In fact, the aviation sector has a high output multiplier of 3.25 and an employment multiplier of 6.1.
Presently, there is a huge disparity between States, and even within States, in terms of VAT being levied on ATF. Given the challenges that have arisen due to COVID-19. Hence, the Minister emphasised the need to reduce the existing VAT/Sales Tax on ATF to 1%-4% at all airports with immediate effect. Besides, it is worth noting that the revenue collected by the State on account of VAT on ATF is an insignificant proportion of the overall State finances. In any case, this will be more than offset by the positive impact of the air connectivity to the State through the flow of economic activities.
The 22 states/UTs to which the Minister wrote include Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Rajasthan, Tamil Nadu, Tripura, Uttarakhand, Uttar Pradesh, Jammu & Kashmir, National Capital Territory of Delhi, Ladakh, Andaman Nicobar, and Dadra and Nagar Haveli and Daman & Diu.
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With the government looking to privatise Air India as soon as possible, the airline's management has been asked to ensure staff colonies are vacated, for which the Centre has set a deadline of six months from the sale. The investments made with Air India's provident funds are also set to be liquidated and transferred into the Employees Provident Fund Organisation, for which Maharaja's management has been asked to get approval from a majority of the employees.
If the money falls short of what the employees are supposed to get, the body leading the divestment - a GoM led by Home Minister Amit Shah - has decided that the government will shore up the deficit. As for the actual divestment, the government expects that to be done by the end of the fiscal, with the Tatas seemingly the frontrunners, at this moment.
With the government looking to privatise Air India as soon as possible, the airline's management has been asked to ensure staff colonies are vacated
In addition to these, the aviation ministry has set out other provisions for current and former employees of the airline:
The government will ensure that medical benefits will be available to both retiring and retired employees, with the Central Government Health Scheme being looked at as an option. Employees will be allowed to stay at the accommodation for six months post the sale of Air India or till the property is monetised, whichever comes first.
The Centre has asked the airline for the details of its employees, specifically retired employees and their spouses, as well as the staff who will turn 58 (the age for superannuation) on the date Air India, will be sold. The ministry has also asked for a list of those that turn 55 on the date or have completed twenty years of service in Air India, Air India Engineering Services and AIASL.
After 68 years of government ownership, privatizing Air India was always going to be a challenging task. The carrier has accumulated assets around the country, including offices, plots of land, and hundreds of apartment colonies. With no buyer looking to purchase all of these non-airline assets, the government must find some way to recoup the billions in debt AI owes.
This will come in the form of monetizing the assets owned by Air India. With land in Mumbai being a scarce commodity, the 184 acres in Kalani are worth exponentially more than what AI has been paying as lease rental. However, this would mean displacing 7,000 Air India employees and uprooting a massive colony that features schools, an iconic cricket ground, and much more.
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India's air safety regulator DGCA said on Thursday it had cleared Boeing Co's 737 MAX aircraft to fly with immediate effect, ending its nearly two-and-a-half-years of regulatory grounding in a key travel market for Boeing.
On March 13, 2019, all Boeing 737 Max planes were grounded in India by the Directorate General of Civil Aviation (DGCA) after the crash of an Ethiopian Airlines 737 Max plane on March 10 near Addis Ababa which had left 157 people, including four Indians, dead.
Aircraft manufacturer Boeing has been modifying the 737 Max plane since March 2019 so that various countries’ regulators, including the DGCA, permit its passenger flight operations again.
In its order dated August 26, 2021, the DGCA stated that the operation of Boeing 737 Max planes is permitted “only upon satisfaction of applicable requirements for service return”.
A senior DGCA official confirmed that the ban on 737 Max planes’ commercial flight operations has been lifted.
The Boeing 737 Max planes were grounded globally in March 2019 after two crashes within 5 months.
The DGCA allowed Boeing 737 Max aircraft to fly over Indian airspace in April and also said foreign registered aircraft could be ferried out of the country. However, the aviation watchdog has not lifted the ban on aircraft that’s been grounded in India since March 2019.
In India, SpiceJet and Jet Airways operated Boeing Max aircraft before the ban. SpiceJet has 13 Boeing 737 Max 8 aircraft in its fleet and placed orders for 142 additional aircraft, whose deliveries were halted.
SpiceJet Ltd, India's second-largest airline by market share and the only one in the country to fly the 737 MAX aircraft, said earlier in the day it had signed a settlement with lessor Avolon on leases for the aircraft. SpiceJet has more than 100 737 MAX planes on order.
SpiceJet's B737MAX
"SpiceJet has entered into a settlement with Avolon, a major lessor of Max aircraft, paving the way for the airline's 737 MAX aircraft to start to return to service," the low-cost carrier said in the statement.
Around 175 countries have allowed the 737 MAX to return to service following a safety ban, with 30 airlines already restarting their MAX aircraft services. China is now the only major market where regulators are yet to give the MAX a go-ahead. Boeing earlier this month conducted a test flight of the 737 MAX plane in China.
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Before the Covid pandemic hit and grounded planes worldwide, aviation was said to contribute to about 3% of global CO2 emissions. As trivial as the numbers may look, they, are supposedly more than the entire emission of Germany! Also affecting rise in world temperatures is "radiative forcing"-of which CO2 is the main factor. Aviation contrails, which are basically water vapour trials from airplane wings, are another major factor contributing to the cause.
With advancements in technology and the advent of more efficient engines, CO2 emissions from commercial flights have fallen more than 50% since 1990.
How good is hydrogen over conventional jet fuel?
Hydrogen looks promising as an alternative fuel to the convention fuel used in aviation. Regardless of whether it is used to power a fuel cell for electricity generation or directly combusted for motive power, water is the only by-product produced. Hydrogen packs a lot of energy per unit of mass, making it more relevant in commercial flying.
Hydrogen is one of the most promising technology vectors to allow mobility to continue fulfilling the basic human need for mobility in better harmony with our environmentGrazia Vitaldini, chief technology officer at Airbus.
It came as no surprise then, that in Sept of 2020, Airbus unveiled Project zeroE-wherein it presented 3 concept planes which, at the time, the company proposed would enter service by 2035. Let's take a look at the models below:
1. Turboprop (propeller)Capable of carrying 100 passengers with a maximum range of 1,000 nautical miles (1,850km). The liquid hydrogen storage and distribution system would be located behind the rear pressure bulkhead.
AIRBUS
2.TurbofanCapable of carrying about 200 passengers with a maximum range of 2000 nautical miles(3,704km). Again, The liquid hydrogen storage and distribution system would be located behind the rear pressure bulkhead.
AIRBUS
3.Blended-Wing Body(BWB)Prototype with a generous wide intérior area. This opens up multiple options for hydrogen storage and distribution.Powered by two hybrid hydrogen turbofan engines, liquid hydrogen tanks would be stored beneath the wings.
AIRBUS
Also worth noting is the fact that hydrogen fuel cells generate electrical power which basically complements the gas turbine. What we now have is an highly efficient hybrid-electric propulsion system. The benefits of such a system are innumerable.
Do the benefits really outweigh the cons though?
As attractive as the benefits seems to look, not everyone in the industry is optimistic about the transition towards low/zero carbon flight.
Ariyan International Inc
Experts have propagated that although hydrogen has higher energy by mass than jet fuel, it still is lower by volume meaning it would have to be compressed to extremely low temperatures for sufficient storage. This translates to heavier and much more complex tanks for the storage of compressed hydrogen.
Chemically, the density of hydrogen is just about 1/4th that of jet fuel. Basically meaning, aircrafts may have to carry fewer passengers to make space for storage tanks or compromise on overall size.
As of today, liquid hydrogen is estimated to be twice as expensive as conventional jet fuel and will continue to remain so for the next few decades.
Our belief is that it will take a while for all the technology and elements of hydrogen propulsion to be worked out before we can get to… commercial useSean Newsum, director of environmental strategy at Boeing Commercial, recently told to the Financial Times.
So, what are the alternatives?
The Geneva-based, Air Transport Action Group is hopeful of still achieving zero CO2 emissions but only by 2050 or so.According to the group, although hydrogen would be playing a part, it would be still be marginal as compared to the use of Sustainable Aviation Fuel(SAF).
ADS group
If SAF production can be scaled up – and aviation needs 500 million tonnes a year by 2050 – we can make a huge contribution for our planetPaul Stein, chief technology officer at the engine makers Rolls Royce.
SAFs apparently have the obvious advantage over jet fuel in that they are chemically similar, can be filled into existing systems without having to redesign them thereby reducing delays and is comparitively cost-effective.
COVER: Airbus
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Union Minister of Civil Aviation Shri Jyotiraditya M. Scindia, MoS, Civil Aviation along with General Dr V K Singh (Retd.) virtually flagged off the first direct flight operations between Jamnagar (Gujarat), to Bengaluru (Karnataka) & Hyderabad (Telangana) under the RCS-UDAN (Regional Connectivity Scheme — Ude Desh Ka Aam Nagrik) of the Government of India. Shri Jawaharbhai Chavda – Minister of Tourism Gujarat, Shri Bhupendrasinh Chudasama, Minister of Civil Aviation, Gujarat, Smt. Poonamben Hematbhai, Member of Parliament, Jamnagar, alongside Shri R C Faldu, Member of Legislative Assembly (MLA), Shri Raghavjibhai Hansrajbhai Patel, MLA also graced the flag off event virtually.
Joint Secretary, Ministry of Civil Aviation, Smt. Usha Padhee along with the senior officials of the Ministry of Civil Aviation (MoCA) and Airport Authority of India (AAI) were also present at the launch of the flight operations. Operationalizing of this route expands the aerial connectivity of Jamnagar to 03 major cities of India that includes Mumbai (Maharashtra), Bengaluru & Hyderabad.
“I am happy to announce the kick-starting of regional connectivity from Jamnagar under UDAN. From today, M/s Star Air will operate first time direct flights between Jamnagar and Bengaluru including flights between Jamnagar and Hyderabad under UDAN. Jamnagar is the perfect blend of trade, cultural, and religious hubs. Moreover, I am delighted to announce that we are planning to commence 10 more additional flights from Gujarat under UDAN. The UDAN scheme envisioned by our Prime Minister Shri Narendra Modi has been a game-changer for the civil aviation sector of the country.”Shri Jyotiraditya M. Scindia, Union Minister of Civil Aviation
Jamnagar is also called the “Chhoti Kashi” due to the presence of more than 100 temples. Jamnagar is well known for its four marble Jain temples: Vardhman Shah Temple, Raisi Shah Temple, Sheth Temple, and Vasupujya Swami Temple; all built between 1574 and 1622. Furthermore, Jamnagar is also called Gateway city to one of the Chard Dhams – Mokshapuri city – Dwarka.
The city of Jamnagar is also known as the World's Oil City due to the presence of the world's largest Oil Refining and Petrochemicals Complex near the village of Moti Khavdi & the second-largest private refinery in India located in the nearby town of Vadinar. Owing to the presence of more than 5,000 large-scale and 10,000 small-scale workshops manufacturing brass items Jamnagar was formerly termed as 'Brass City' of the country. The region records the largest production of brass items in the country.
Due to the non-availability of any direct mode of air or rail connectivity, people were compelled to spend long travel hours to reach these cities. Availability of direct flight between Jamnagar and Bengaluru will drastically cut down the travel time to 135 minutes from earlier 07 hours taken for air travel using connecting flights via Mumbai. Alternate option of road travel between these two cities also takes over 30 hours while train travel takes around 20 hours.
Likewise, the completion of the entire journey took more than 1 day to reach Hyderabad from Jamnagar by train and road travel or vice-versa. Due to the non-connectivity of direct flights between these two cities, it took more than 06 hours for air travel using connecting flights. Now, natives can easily fly between the two cities by opting for a flight of just 130 mins.
Star Air will be operating thrice-weekly flights on the route and will deploy its 50-seater Embraer ERJ-145 aircraft.
Star Air was awarded the above routes during the UDAN 3 bidding process. The airlines are being provided Viability Gap Funding (VGF) under the UDAN scheme to keep the fares affordable & accessible for the common people. The airline will be operating thrice-weekly flights on the route and will deploy its 50-seater Embraer ERJ-145 aircraft. The route marks the commencement of the 32nd UDAN route by the airline.
To date, 369 routes and 60 airports (including 5 heliports and 2 water aerodromes) have been operationalized under the UDAN scheme.
The flight schedule is mentioned below:
FLIGHT NO.SECTORDEPARTUREARRIVALFREQUENCYAIRCRAFT OG131 Bengaluru - Jamnagar 06:35 08:50Tuesday, Thursday & Saturday ERJ145 OG149 Jamnagar - Hyderabad 09:15 11:30Tuesday, Thursday & Saturday ERJ145 OG150 Hyderabad - Jamnagar 15:15 17:20Tuesday, Thursday & Saturday ERJ145 OG132 Jamnagar - Bengaluru 17:45 20:00Tuesday, Thursday & Saturday ERJ145
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Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), as the name suggests, is a scheme aimed at offsetting carbon emissions for international flights. This is implemented as a part of the effort to mitigate aviation impact on global climatic change.
The United Nations Framework Convention on Climate Change (UNFCCC) doesn't recognize emissions from international flights as they are beyond the scope of nationally-determined climatic change. Hence these emissions are now accounted for by the International Civil Aviation Organisation (ICAO).
Adoption of the policy
In October 2016, the 191 member nations of the ICAO came together and took the historic decision of forming what is known as "CORSIA". This would require operators to purchase carbon offsets to cover their emissions above 2020 levels, starting from 2021.CORSIA will regulate 25% of aviation's international emissions although the scheme doesn't propagate a definitive target like containing global warming which was the main objective at the 2015 Paris Climate Agreement.
Following the implementation of CORSIA, it is expected that it will help reducing 2.5 billion tonnes of CO2 emissions between 2021 and 2035.However, it is to be noted that this scheme only applies to international flights as domestic emissions fall under the surveillance not the UNFCCC-covered by the Paris Agreement.
How does CORSIA work?
The implementation of CORSIA has been developed keeping the concerns of developing and developed nations in mind. All participating nations would take part in three phases:
1. 2021-2023 and 2024-2026 : These are two initial, voluntary phases2. From 2027- This would be a mandatory phase for all nations participating.
ICCT
During the initial phase, emissions from international flights operating to and from volunteering States will be tracked while non-participating countries would be exempt.The mandatory phase, starting from 2027 will have emissions tracked from all international flights, regardless of their participation in the initial phases.
That said, states with a very small share of international traffic or less geographical area (the official definitions are covered by the UN), developing landlocked countries maybe exempt from this scheme. However, should they wish to participate, they most well can.
Aviation : Benefits Beyond Borders
The key players
All participating airline operators will be evaluated based on the level of CO2 they emit. This includes all aircrafts from large passenger airlines, cargo airlines, business aviation to private aviation.All airlines, as of Jan 2019,will have to submit annual reports of CO2 emissions exceeding 10000 tonnes, to their national authority. Governments will then work with the ICAO, after the reports are evaluated by a third party, to inform airlines of the offset credits they require.
Participation so far
ICAO
About 75+ countries representing over 85% of international aviation are a part of CORSIA (as of Jan 2018), although India and Russia are yet to join the scheme. Also worth-noting is the fact that India has 4 of the 5 carbon-neutral airports in the entire Asia-Pacific region and the world's first fully solar operated airport.
Going ahead
CORSIA is just a part of Aviation's strategy in doing its part to help alleviate global climatic change. It is actively pursuing its goals through a four-pillar strategy focussing more on sustainable fuels, carbon-intensive technology, more efficient operations, and better infrastructure. If all goes as planned, it might well achieve its plan of reducing 50% of CO2 emissions by 2050.
With the onslaught of the Covid-19 pandemic, the drop in air traffic rendered the scheme a little weaker. Worldwide fleet groundings meant the baseline would cost too much as airlines now would be forced to buy more offsets.
Consequently. the ICAO in June, excluded 2020 from the baseline until at least 2023, stating it would be inappropriate to further burden the economic woes of already struggling airlines. What that means is airliners are most unlikely to buy any offsets for the next 5-6 years, regardless of the economic recovery (or otherwise).
IATA
COVER: Bulletin Of The Atomic Scientists
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