Codeshare agreement signed between IndiGo and American Airlines

American Airlines and IndiGo on Tuesday, September 28 announced that they have entered into a codeshare agreement that allows the former to sell seats on the Indian carrier's flights operating on 29 routes.

"The codeshare, which will require U.S. and Indian governments' approvals, is expected to begin in October, as American launches new service between New York (JFK) and Delhi on October 31 this year and between Seattle (SEA) and Bengaluru on January 4, 2022. Customers travelling in American’s Flagship Business cabin on DEL–JFK or BLR–SEA will have access to IndiGo partner lounges in their originating city where they can relax, unwind and enjoy hot food, beverages, Wi-Fi and more. Customers can learn more about lounge locations and offerings on the IndiGo website."Joint Statement of the American Airlines and IndiGo

"We are delighted to sign this codeshare agreement with one of the world’s largest and most reputed airlines. We are confident that this will be a strong partnership that will create many opportunities for trade and tourism through IndiGo’s seamless nationwide connectivity. We look forward to having American’s customers on our lean clean flying machine, as we extend to them our on-time, affordable, courteous and hassle-free travel experience."Ronojoy Dutta, CEO, IndiGo

"We’re eager to add IndiGo as our trusted partner in India. Whether our customers are traveling for business or pleasure, this new partnership makes it easy to reach all four corners of India.Whether our customers are travelling for business or pleasure, this new partnership makes it easy to reach all four corners of India. Today we're adding 29 new routes to our map as a result of this agreement, providing customers with even more options around the globe."Vasu Raja, Chief Revenue Officer, American Airlines

The one-way codeshare agreement will place American's code on 29 of IndiGo's domestic routes, providing a convenient option for American Airlines customers to travel within India after landing in Bengaluru or Delhi. This means that once the one-way codeshare agreement comes into force, American will be able to sell seats -- on its distribution system -- of IndiGo flights on the 29 selected routes.

In a two-way codeshare agreement, each airline on its distribution system can sell seats of other's flights. Currently, IndiGo has a two-way codeshare agreement with Turkish Airlines and a one-way codeshare partnership with Qatar Airways.

IndiGo is India's largest airline by the number of passengers carried. With its fleet of 275+ aircraft, the airline operates more than 1,100 daily flights, connecting 70 domestic destinations and 24 international destinations.

Previously in November 2005, American Airline was in a codeshare agreement with Air Sahara. Ronojoy Dutta who is the current CEO of IndiGo was then the president of Air Sahara.

Air Sahara was once a rapidly-growing Indian airline, with strong domestic operations and expanding international routes. The airline was almost exclusively a Boeing 737 carrier, starting from the -200 to the -800. Air Sahara was eventually bought out by Jet Airways.

Air Sahara was officially rebranded as JetLite, Jet’s new low-cost arm. JetLite would serve as the competitor to the then-new IndiGo, GoAir, and SpiceJet. In April 2019, JetLite grounded all of its flights and ceased all operations, in tandem with its parent company, Jet Airways.

Earlier this year, Airbus had revealed plans of introducing a single pilot crew on long haul flights. Airbus, in collaboration with Cathay Pacific, introduced "Project Connect" where only a minimum number of cockpit crew members (2 pilots) would be required to fly a long-haul aircraft.

Asia Times

The concept would work on reducing the crew requirement from 3-4 on long haul flights to just 2-3 now. The project focusses on keeping one pilot in the cockpit while on rotation, as opposed to the regular norm of 2.Although this might sound like a new concept on the street, it is surprisingly, quite the opposite.Single pilot crew have always been a mandate on smaller aircraft and military aircrafts.

The road to certification

As is with any new technology, commercial implementation would require extensive testing, appropriate approvals from the regulatory and also specific pilot training to ensure there is no compromise on safety.The effectiveness of any such roll-out though, and the overall economic feasibility would depend on how the pandemic plays out in the coming future.

Airbus had previously disclosed plans to add single-pilot capability to the A350, but the airlines’ participation had not been reported. Work has resumed after the Covid-19 crisis paused the programmeChief Test Pilot Christophe Cail said

Solo piloting- a realistic picture

The Travel Updates

With increased automation, experts have questioned the level of flight safety in critical scenarios.

Safe deployment will require constant monitoring of the solo pilot's alertness and vital signs by on-board systemsEASA

The agency has also asked the developing team to design the concept in such a way that should the flight encounter a problem or the pilot flying be incapacitated, the resting crew be summoned immediately. Furthermore, it stated both crew remain in the cockpit during landing and take-off.

It makes sense to say OK, instead of having two in the cockpit, we can have one in the cockpit, the other one taking a rest, provided we're implementing technical solutions which make sure that if the single one falls asleep or has any problem, there won't be any unsafe conditionsEASA chief Patrick Ky told a German press briefing in January.

How have the pilot community taken to this?

Not everyone has taken well to the concept and pilots groups have raised their concerns. This technology could potentially render scores of pilots redundant.

We struggle to understand the rationalesaid Otjan de Bruijn, head of the European Cockpit Association representing EU pilots.

Apparently, some feel the programme's cost-cutting approach can have serious consequences, analogous to B737 MAX crisis.Single pilot operations are currently limited to planes with upto 9 passengers. Successful implementation of this concept on large scale commercial planes would require backing from U.N. aviation body ICAO and countries whose airspace they cross.

EASA plans consultations this year and certification work in 2022, while acknowledging "significant risk" to the 2025 launch datea EASA spokesman said

According to sources, Airbus has designed an A350 autopilot upgrade and flight warning system changes that would help a lone pilot manage failures.Apparently, this feature is best suited on mid-size planes which would quickly reduce altitude without pilot input in the event of cabin depressurisation.

Flying solo for hours is a completely different story. Airbus would have had to make sure every situation can be handled autonomously without any pilot input for 15 minutes. And that couldn't be guaranteedsaid a source at Lufthansa

Single-pilot capability would add an A350 sales argument, experts say, and rival Boeing lacks an equivalent model with sufficient automation.

COVID may end up accelerating this evolution because it's putting tremendous economic pressure on aviationFilippo Tomasello, a former EASA official

With advanced automation touted to replace human intelligence, would you ever fly in a plane piloted by a single crew? Let us know your thoughts in the comments below

COVER: Airbus

The Central government is planning to announce the winning bid for Air India by October 15. The financial bid for the debt-ridden national carrier is likely to be opened tomorrow, reported CNBC citing sources.

Financial bids will be evaluated against an undisclosed reserve price and the bid offering the highest price above that benchmark would be accepted. The bid will initially be examined by the transaction advisor before the recommendation is sent to the Cabinet for approval.

According to the report, 85% of the bid price will be for Air India's debt, and 15% will be in cash.

On September 25, Union Minister Jyotiraditya Scindia said the privatisation process of Air India was underway and technical bids were being analysed before the financial bids are opened. He also said the process of privatisation is on and it will reach its culmination.

"We have received technical bids and financial bids which are in sealed envelopes. Currently, the technical bids are being scrutinised. Financial bids will be opened only after scrutiny of technical bids. We will be informing you as we move along the process. As long as the process of scrutinisation is going on, I shall not divulge any details. Till then, you guess is as good as mine."Jyotiraditya Scindia, Union Minister for Civil Aviation

The government will sell a 100% stake in Air India and its low-cost subsidiary Air India Express, and 50% in ground handling company Air India SATS. A subsidiary of Tata Sons, Talace Pvt Ltd, and SpiceJet promoter Ajay Singh have officially bid for Air India.

The national carrier and its subsidiary Air India Express may have together been valued in the range of Rs 15,000-20,000 crore by Tata, according to people familiar with the bidding process. “The valuation is a rough estimate of the assets (aircraft) owned by the beleaguered airline being sold by the government,” said the people cited above.

The board of Tata Sons had given a free hand to its chairman on the bid, mentioning a price range the group would be comfortable paying for the troubled carrier. “The bid is quite within that range mentioned,” an official aware of the matter said.

Meanwhile, Air India posted a net loss of INR 3,836.78 crore in FY16, INR 6,452.89 crore in FY17, INR 5,348.18 crore in FY18, INR 8,556.35 crore in FY19 and INR 7,982.83 crore in FY20 as per provisional figures.

During the Budget speech for FY22, Finance Minister Nirmala Sitharaman had said that all the proposed privatisation processes would be completed by the end of the fiscal, including the much-delayed strategic disinvestment of Air India.

This is the second attempt of the current Central government to divest its stake in the airline.

In the pre-pandemic era, the airline, on a standalone basis, operated over 50 domestic and more than 40 international destinations. Besides, it operated over 120 aircraft before the Covid pandemic.

During that period, the airline had over 9,000 permanent and 4,000 contractual employees.

The Rajiv Gandhi National University of Law, Punjab, will establish the ‘Centre for Studies in Aviation, Space and Defence Laws’, Vice-Chancellor Professor GS Bajpai said.

For this, RGNUL on September 27 signed a Memorandum of Understanding (MoU) with the General Counsels’ Association of India (GCAI), New Delhi, the university said.

The university aims to bridge the gap between law and studies in aviation, space and defence and has advanced a “rare blend of academia and industry for building capacity of students”, it said.

Prof Bajpai said, “The University will establish Centre for Studies in Aviation, Space and Defence Laws to meet the high demand of law professionals with expertise in defence laws. This unique blend is first of its kind in North India.”

Dr Akhil Prasad, Country Counsel India and Company Secretary, Boeing, who attended the event virtually, said, “This collaboration would not only provide certificate courses, training and internship opportunities to students of RGNUL but also augment their identity as distinct lawyers.”

Members of GCAI, Lubinisha Saha, General Counsel, Airbus; Manjaree Chowdhary, General Counsel, Maruti Suzuki India Ltd.; Amar Kumar Sundaram, Legal Head, Royal Bank of Scotland; Sanjeev Gemawat, Executive Director and Legal and Group Company Secretary, Dalmia Bharat Group; CV Raghu, Group General Counsel, Samvardhana Motherson Group and Prof Naresh K Vats, Registrar, RGNUL along with faculty members attended the e-ceremony.

Full-service carrier Vistara has partnered with IndusInd Bank to launch co-branded credit card Club Vistara IndusInd Bank Explorer.

The credit card will offer various benefits such as a complimentary business class ticket, membership of the airline's frequent flyer programme and lounge access.

Other benefits include rescheduling fee waiver on direct booking of Vistara flights, luxury gift vouchers, complimentary movie tickets and dining vouchers, complimentary personal air accident cover, zero currency mark-up on international spends as well as a waiver on fuel surcharge at any petrol pump, among others, Vistara said in a release on Monday, September 27.

"We are happy to partner with IndusInd Bank to offer our customers a solution (a co-branded credit card). We are hopeful that our customers will see great value in the Club Vistara IndusInd Bank Explorer Credit Card and enjoy its benefits as they travel around the globe with us."Vinod Kannan, Chief Commercial Officer, Vistara

The all-new card provides the cardholders with a complimentary 'Gold' class membership to Club Vistara (CV), under which they can earn points on every flight and can even redeem their earned CV points to avail flights.

Moreover, the card also enables cashless travel for customers to destinations around the globe, while also earning CV points on their spending, the airline said.

"We are delighted to collaborate with Vistara, to launch the 'Club Vistara IndusInd Bank Explorer' credit card that aims to revitalise the way India travels. As the world is gradually opening up, Indians and especially millennials will look to travel for both business and leisure." Soumitra Sen, Head of Consumer Bank, IndusInd Bank

The key benefits of the co-branded card include complimentary access to over 600 airport lounges across the globe, up to five complimentary business class tickets on achieving spend milestones every year as well as rescheduling fee waivers on direct booking of Vistara flights, according to the airline.

The financial benefits include a complete waiver on fuel surcharge at any petrol pump across India and also a lifetime waiver on late payment charges, cash withdrawal charges as well as over-limit fees.

Also, the cardholders will be entitled to luxury gift vouchers worth INR 25,000 or Oberoi hotel and resort gift vouchers and two complimentary movie tickets of INR 700 each per month besides complimentary dining vouchers worth INR 3000 twice a year.

Complimentary personal air accident insurance cover of up to INR 2.5 crore and insurance against loss or delayed baggage, loss of passport, ticket as well as missed connection are the other benefits a cardholder can avail.

Tata Sons—the holding company of the $113-billion Tata group, one of the frontrunners to acquire Air India, could be looking at the possibility of bringing all its airline ventures under a single entity.

The conglomerate has proposed to initially bring AirAsia India, the low-cost airline, under Air India if it emerges as the successful bidder for the national carrier, reported The Economic Times after speaking with top executives.

It may also look to bring full-service carrier Vistara under the combined entity if Singapore Airlines (SIA), which holds a 49% share in the company, at a later stage.

Malaysia’s flagship budget airline AirAsia Group Bhd, which owns about 16% stake in AirAsia India, has decided to exit India by March 2022, offloading its remaining stake for $18 million. Tata Sons owns close to 84% of AirAsia India. Late last year, it bought an additional 32.67% in the budget carrier, from 51%. According to the agreement, Tata has a call option on the remaining 16.33% of AirAsia India.

As per the report, Tata Group has reached out to SIA about its plan to include their joint venture Vistara as a part of the combined airline entity to make operations more efficient.

No official comment on the matter has come from AirAsia India, Vistara and Tata Sons did not comment on the matter.

However, Tata Group is reportedly exploring plans to hire integration specialists to create a single airline entity as there would be complications involved in combining the organisational structures.

One of the people cited in the ET report said the group is clear that the strategy is to have a single airline entity if it successfully acquires Air India. Bringing the airline business under one umbrella could reduce operational costs as multiple cost structures would be eliminated.

Data from the Directorate General of Civil Aviation (DGCA) suggests that AirAsia India, Vistara and Air India together have a 26% share of the domestic aviation market. It is still lower than market leader IndiGo that has a market share of 57%.

On September 15, Tata Group and Spicejet promoter Ajay Singh submitted final bids for Air India. The government is expected to select the winner of the bid soon.

Following the selection, two high-level committees will decide the reserve price for the national carrier within this period. This will be one of the final steps in the Air India divestment process, following which the government will plan to complete the transaction by December.

The reserve price of the airline will be decided by an inter-ministerial group (IMG) head by the secretary of the Department of Investment and Public Asset Management (DIPAM), based on inputs from government-appointed valuers.

Tata Sons have roped in Bain and Company and Seabury Group to carry out due diligence on divestment-bound Air India and its subsidiary Air India Express.

The group has bid for the national carrier through a new subsidiary, Talace Ltd. It's not clear yet if Talace will be the single holding entity of the group's airline businesses.