Barclays, Aditya Birla Finance, NIIF Fund provide INR 1,000-crore debt to Delhi Airport

Barclays Bank, Aditya Birla Finance and a fund owned by National Investment and Infrastructure Fund (NIIF) have provided an INR 1,000-crore debt facility to Delhi Airport (Delhi International Airport Limited - DIAL), people aware of the transaction said.

The trio invested in five-year bonds of the GMR Group-promoted company wherein a 9.52% coupon would be paid for the first three years and 9.98% for the remaining two years, they said.

Barclays Bank invested INR 500 crore, Aditya Birla Finance invested INR 150 crore, and Aseem Infrastructure Finance, a NIIF fund, invested INR 350 crore, they said. Barclays confirmed the development.

Barclays, Aditya Birla Finance, and NIIF Fund provide INR 1,000-crore debt to Delhi Airport

ICRA Ratings had assigned an A+ rating to the INR 1,000-crore bonds on May 27. According to the information memorandum, DIAL must pay a 25 basis point higher coupon if the credit rating is downgraded below 'A'. However, there is no step up if the rating is lowered by one notch from 'A+' to 'A'.

DIAL had raised INR 3,257 crore in rupee bonds at 10.96% by the end of March 2021 due to a significant decline in the internal accruals caused by the Covid-related disruptions.

Proceeds from the latest debt facility would be used to finance the increase in interest payments during construction, resulting from revised Capex timelines and one-time drawdown estimated at INR 950-1,000 crore of the bond raised in March 2021, ICRA said.

GMR Infrastructure in a statement on Monday, June 27 had said the proceeds of the bonds would be used to part-finance phase 3A expansion programme of the airport.

GMR Infrastructure's latest annual report for FY21 stated that Phase 3A expansion includes expansion of Terminal 1 and Terminal 3, construction of a fourth runway along with enhancement of airfields, and construction of taxiways, which will expand the capacity of Indira Gandhi International (IGI) Airport to 100 million passengers annually.

GMR Infrastructure holds a 51% stake in GMR Airports, which in turn holds a 64% stake in DIAL. Airports Authority India has a 26% stake in the airport while Fraport AG Frankfurt Airport Services Worldwide (Fraport) holds the remaining 10%.

ICRA had stated that DIAL is exposed to high refinancing risk given that it has a large bullet repayment of INR 3,257 crore falling due in 2025-26, INR 3,494 crore due in FY27 INR 1,000 crore in FY28, and INR 3,500 crore in FY30.

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(With Inputs from The Economic Times)

Tata Group-owned international budget airline Air India Express may add four Boeing 737 planes to its fleet of 24 aircraft by this year-end to meet the increased demand for international travel, airline sources privy to the information have said.

Following the removal of various pandemic-related curbs, aviation is picking up and demand has bounced back and dry leasing is an option to enhance capacity in the short-term, they said.

Air India Express currently has 24 Boeing 737 planes in the fleet. It lost one plane in the Kozhikode plane crash in August 2020.

Air India Express plans to add 4 Boeing 737 to keep up with the rising demand

"Demand for international travel has bounced back after the removal of most of the pandemic-related restrictions on travel. Loads (passenger on aircraft) are good and all the routes are doing well. Of course, there are some seasonal variations, which have been factored in," a source told PTI.

“In the short-term, the airline might take four aircraft on dry lease to increase capacity for the interim period,” the source said, adding that the new aircraft will be utilized to enhance frequency on certain routes.

"You can't open new routes with four additional aircraft. These planes will only be used for increasing frequency and consolidation of the existing routes," a source said.

Air India Express currently has 24 Boeing 737 planes in the fleet.

Air India Express currently operates at 11 airports in India and 13 abroad with over 100 daily flights. The induction of four more aircraft will expand the fleet to 28 planes altogether.

Even as a state carrier, Air India Express’ balance sheet remained impressive, in sharp contrast to its bigger full-service sibling Air India.

The carrier’s business model of offering budget flights on high-density point-to-point routes from tier-2 and 3 Indian cities to places like Dubai, Sharjah, and Muscat brought in steady cash every year.

Air India Express posted its highest-ever net profit in the financial year 2019-20 of around USD 52 million. Even before that, it had been in profit for five years. However, its plans for further expansion have met with roadblocks over the years.

Air India Express’ balance sheet remained impressive, in sharp contrast to its bigger full-service sibling Air India.

With new owners, Air India Express is hoping for better days ahead. Its Chief of Commercial Tara Naidu recently commented that Air India Express could connect second and third-tier cities in India with several more countries as part of a “huge” expansion plan.

Around 30 countries are being explored by the airline, including Cambodia, China, Indonesia, the Philippines, Turkey, and Vietnam.

ALSO READ - Air India Express plans massive international expansion in the next 5 years

"The airline has not been allowed to grow for a long time. Earlier, its growth was hampered on account of the disinvestment process. The competition is growing every day and we have to keep up with that,” the source said.

Stating that Air India Express is hiring both cockpit crew and the cabin crew, which is an indication itself of induction of more aircraft (in the short-term)

According to another source, the airline had drawn up a business plan in 2018, in which it had envisioned to be a 50-aircraft company by 2025 as air passenger traffic was booming at that time.

"But first the government did not give us the go-ahead at that time saying that the airline was in its disinvestment plans and then the Covid-19 happened,” said the source.

Stating that Air India Express is hiring both cockpit crew and the cabin crew, which is an indication itself of induction of more aircraft (in the short-term), the source said, “a walk-in-interview for cabin crew has been conducted at Calicut on Tuesday, June 28. Also, the airline has already completed one round of walk-in interviews at Delhi, Mumbai, Mangalore and Calicut.”

“And in the coming weeks, Air India Express plans to conduct a similar exercise at Kochi as well as Northeast,” he said.

Jet Airways has asked the aviation regulator DGCA to direct SpiceJet to remove its livery from the budget carrier's aircraft as it misleads the public about the identity of the operator and is also a safety hazard. Each airline has its livery -- a specific paint scheme comprising a logo that is applied on aircraft.

In a letter to the Directorate General of Civil Aviation (DGCA) on June 21, Jet Airways stated, "After the stoppage of our operations in 2019, several aircraft were returned to the lessors and then leased out to some Indian operators such as SpiceJet."

Many of these airplanes continue to fly in full Jet Airways' colours on the fuselage and tail with Jet Airways' name blanked off and overwritten by decals (a vinyl wrap), it added. "Also, the Jet Airways logo on the tail has been painted over, but is still discernible if one looks carefully," it mentioned.

Jet Airways requests DGCA to ask SpiceJet to take down their livery from its aircraft

The letter also noted that some of these aircraft have been involved in accidents or incidents, the photographs of which have been widely circulated in media.

One such example is the runway excursion of a SpiceJet B737 aircraft in Mumbai in 2019 where Jet Airways' colour scheme and part of the logo is prominently visible in the photos still available on the internet, it mentioned.

Jet Airways received its renewed air operator certificate (AOC) from DGCA on May 20 this year and it is planning to start commercial flight operations in September.

ALSO READ - Jet Airways returning with a hybrid premium and no-frills model, first flight likely by October 2022

Many of these airplanes continue to fly in full Jet Airways' colours on the fuselage and tail with Jet Airways' name blanked off and overwritten by decals (a vinyl wrap)

SpiceJet has 90-odd planes in its fleet. Some of the B737 aircraft it has been with Jet Airways before the latter went bankrupt in 2019.

Airline liveries are fundamental statements of branding and corporate identity and all operators endeavour to make theirs as distinctive and readily recognisable as possible, Jet Airways stated in its letter.

Therefore, it is evident that an operator flying its aircraft in another airline's livery has a serious potential to mislead the public about the identity of the operator, something which cannot be taken lightly, it mentioned.

SpiceJet has 90-odd planes in its fleet. Some of the B737 aircraft it has been with Jet Airways before the latter went bankrupt in 2019.

"This is also a safety hazard as it can confuse ground staff and crew operating other aircraft about the identity of the aircraft in question, for example when following ATC (air traffic controller) directions," it stated.

This problem becomes even more egregious when such aircraft are involved in undesirable situations like accidents, incidents, or interception in foreign airspace, it mentioned.

"May we request your office to issue necessary directions to all operators to use only their authorised livery as filed with the DGCA compulsorily, and to remove all vestiges of other airline liveries from their aircraft. As we plan to begin operations in September and expect to have aircraft in our livery delivered to us in July this year, an early action from your good office to ensure all such unauthorised liveries are removed by July would be highly appreciated."Jet Airways

Commenting on the matter, a SpiceJet spokesperson told PTI in a statement, "We have not received any communication from the DGCA. The older planes are being phased out and many have already left the fleet. They are being replaced by the 737MAX."

Jet Airways, in its old avatar, was owned by Naresh Goyal and had operated its last flight on April 17, 2019. The Jalan-Kalrock Consortium is currently the promoter of Jet Airways.

ALSO READ - Jet Airways places Airbus in the lead for USD 5.5 billion aircraft order

Airbus is the favourite to win a USD 5.5 billion order from Jet Airways for A320 and A220 aircraft. The airline is in talks with plane manufacturers, and a spokesperson said final negotiations were on with lessors and plane manufacturers for its fleet.

The recent suspension orders issued by the civil aviation regulator to flight instructors of five flying training organisations (FTOs) will in no way slow down the training of cadets or cause problems for Commercial Pilot License (CPL) holders wanting to keep their licenses valid, clarified the director-general, civil aviation on Monday, June 27.

In all the five cases, other instructors have taken on the job responsibilities, earlier handled by the suspended instructors.

ALSO READ - DGCA reviews 30 flying training organisations; suspends certified flight instructors

"The Chief Flight Instructor (CFI) and deputy CFI of Pioneer, Aligarh have been suspended for one year. The FTO continues to be functional as a new CFI has been appointed," said Arun Kumar, director general, civil aviation.

Flying training activities won't slow down due to the suspension of FTOs - DGCA

Similarly the CFI of Madhya Pradesh Flying Club, Indore has been suspended. "They already have 3 more CFI/Dy. CFI," he said. The Dy. CFI and CFI of TSAA, Telangana has been suspended. But the school has one more CFI, he said.

The FTO approval of SVKM, Shirpur has been suspended for 21 days. It's a small FTO with only 3 aircraft.

Chimes aviation academy's FTO has been suspended till its runway in Dhana is re-carpeted, which is routine work which needs to be carried out after years of wear and tear.

ALSO READ - DGCA suspends operations of 2 flying training schools due to serious safety concerns

The Directorate General of Civil Aviation (DGCA) had suspended the FTO approval of Chimes following an inspection which revealed the runway had loose gravel and uneven surface and was unsafe for flying.

Chimes aviation academy's FTO has been suspended till its runway in Dhana is re-carpeted, which is routine work which needs to be carried out after years of wear and tear.

In the case of Shirpur FTO, three of its aircraft were found to have a dysfunctional fuel gauge indicator. Despite that, these planes were being operated.

“The flying operations at this school have been stopped for three weeks. It will be allowed to operate only when things are in order,” said Kumar.

Following a spate of accidents and incidents involving FTOs in India, the director general ordered a special safety audit of all FTOs, which began on March 21.

The audit had found that in some schools, student pilots were not appropriately briefed and trained on emergencies and essential exercises before being released for solo flights or cross-country flights.

Similarly the CFI of Madhya Pradesh Flying Club, Indore has been suspended.

In some FTOs, the instructors, student pilots and aircraft maintenance engineers were found to have skipped the mandatory breath-analyzer test (BA) test, while in others the BA equipment was not in compliance with the requirements, said the official.

Another violation was false logging. In a few cases, the dual flight was found to be logged as a solo flight, in other cases, the taxi time was calculated towards the instrument flying time of the student pilot, the audit found.

Some FTOs were found operating aircraft with faulty fuel gauges, stall warnings etc; others had poor emergency response plans with obsolete contact details.

ALSO READ - DGCA lays down roles and responsibilities to improve flight safety

(With Inputs from The Times of India)

Vietnamese airline Vietjet will connect its coastal city Da Nang with five cities as it looks to boost its presence in the largest country of the subcontinent.

The airline will connect New Delhi, Mumbai, Hyderabad, Ahmedabad, and Bengaluru with the Vietnamese coastal city Da Nang. The new services will start within the third quarter of 2022 with four to seven return flights per week.

Vietjet currently operates four services between Vietnam and India, including New Delhi/Mumbai - Hanoi and New Delhi/Mumbai - Ho Chi Minh City. It has already announced its plans to launch two more routes, connecting New Delhi and Mumbai with the island city of Phu Quoc in September 2022.

Vietjet to connect the coastal city of Da Nang with 5 Indian cities

ALSO READ - Vietjet to resume India-Vietnam flights from April 29 with new routes

The services between Ho Chi Minh City/Hanoi and New Delhi resumed on April 29th and April 30th, respectively, with a frequency of three weekly return flights on each route.

The announcement to commence five new routes was recently made at the Da Nang Investment Forum 2022, Vietjet said. The event also marks Vietjet's announcement to incorporate Da Nang's tourism symbol on its fleet to promote the city globally.

"Vietjet believes that the new routes announced today will continue to contribute to opening more opportunities, promoting economic, trade and business investment between Da Nang and other Vietnamese cities and regional destinations.Da Nang is Vietnam's one of the most attractive destinations for international tourists. Vietjet has transported nearly 22 million passengers from and to Da Nang so far and currently operates eight domestic and five international routes from and to the coastal city."Nguyen Thanh Son, President, VietJet

With many positive activities and connections with Da Nang along Vietnam's 'Central heritage road', Vietjet has constantly opened more routes, offering more flight options with diversified flight schedules and a happy experience for passengers on its new and modern fleet, the airline said.

VietJet expects decent load factors this summer season and announced the resumption of several other routes earlier this year. The carrier has reopened services and increased frequency on several international routes such as Singapore, Indonesia, Thailand, Malaysia, Japan, South Korea, and Taiwan.

VietJet expects decent load factors this summer season and announced the resumption of several other routes earlier this year.

The budget airline also plans to use the new Airbus A330 and A321XLR aircraft to develop new long-haul routes targeting Europe and Australia. Its goal is "to connect Vietnam to the world and bring the world to Vietnam."

VietJet Air is a low-cost carrier based in Hanoi Noi Bai Airport, Vietnam. The carrier began operating in December 2011 after several delayed attempts, initially with 3 A320 aircraft to Ho Chi Minh City and Da Nang. The carrier operates services across Asia.

Air India unions have moved the Bombay High Court to challenge the proposed eviction of employees from staff colonies in Mumbai.

The unions argue that the airline’s letter asking employees to vacate office accommodation by July 26 amounts to a change in service conditions. This, they said, is a violation of the Industrial Disputes Act.

It requires companies to issue a notice to union members before enacting changes in-service conditions. Currently, around 1,600 families are residing in AI staff quarters at Kalina in Mumbai.

Air India unions submit arguments opposing the planned eviction of employees in Bombay HC

Aggrieved by the management action, Aviation Industry Employees Guild (AIEG), Air Corporation Employees Union (ACEU) and All India Service Engineers Association (AISEA) have filed separate writ petitions for quashing the airline’s October and May letters to staff.

“The allotment of accommodation is provided till retirement/cessation of service, according to the Air India allotment rules. There is no provision for any unilateral and arbitrary termination as is sought to be in the present case,” AIEG said in its petition.

Also, the service engineers have pointed out that the airline could not have issued a letter seeking vacation of flats pending the conclusion of conciliation proceedings. The conciliation eventually failed.

The allotment of accommodation is provided till retirement/cessation of service, according to the Air India allotment rules.

Last September, the civil aviation ministry issued certain directions to Air India on the issue of staff retaining office accommodation. In turn, the airline asked employees to give an undertaking that they would vacate their homes within six months of disinvestment.

The employees issued a strike notice against it and the matter was referred to the labour commissioner's office for conciliation.

“How can the employees be evicted overnight during the monsoon just because of the privatisation of the airline? That is our plea,” said AIEG counsel Ashok Shetty.

In October 2021, the airline issued notices to 1200 Air India employees to give an undertaking that they would vacate their staff quarters in the Kalina area of Mumbai within six months of disinvestment.

ALSO READ - Air India employees plan to go to the Bombay HC to protest eviction from staff quarters

Employees took the call at a protest meeting on April 17 which was attended by Shiv Sena MP Gajanan Kirtikar and NCP leader Vidya Chavan.

In October 2021, the airline issued notices to 1200 Air India employees to give an undertaking that they would vacate their staff quarters in the Kalina area of Mumbai within six months of disinvestment.

ALSO READ – Air India employees asked to vacate quarters

Air India's land and other properties were transferred to a Special Purpose Vehicle- Air India Asset Holdings Limited (AIAHL)

In May, India's central government had asked Air India to remind its employees residing in Delhi's Vasant Vihar and Mumbai's Kalina areas to vacate the premises by July 26.

The decision had been taken even before Air India's sale to the Tatas when the government decided that Air India's land and colonies in these areas would have to be vacated within six months after the privatization process is complete.

Air India's land and other properties were transferred to a Special Purpose Vehicle- Air India Asset Holdings Limited (AIAHL) during the privatization discussion and were never a part of the deal with the Tatas.

(With Inputs from Business Standard)