DGCA aces the safety audit by FAA by achieving about 90% of the total compliances

The Directorate General of Civil Aviation (DGCA) has aced the audit by the US-based Federal Aviation Authority (FAA) by achieving about 90% of the total compliances, sources said. Sources in DGCA say that the FAA Audit went off extremely well.

“In a record of sorts, India did not get any adverse observations. On the contrary, in several cases- about 90%, they got appreciation. FAA noted the regulatory and manual reforms carried out by DGCA and endorsed them. In a few cases, they noted that it was working in progress and was likely to be completed in days ahead,” said a senior DGCA source, who did not want to be identified.

DGCA aces the safety audit by FAA by achieving about 90% of the total compliances

“Overall all positive and no negative words or views were expressed in their assessment. This was the best, India has ever performed in an FAA audit to date,” the source added.

The DGCA official said, “The FAA noted the regulatory and manual reforms carried out by DGCA and endorsed. In a few cases, they noted that it was a work in progress and was likely to be completed in days ahead. Overall, everything was positive and no negative views were expressed in their assessment.

Successful completion of the FAA audit would mean Indian carriers would not face any issues in launching flights to the US. This also ensures that other aviation regulators do not raise any concern over India’s regulatory standing, thus, making it easier for Indian carriers to expand globally.

The FAA noted the regulatory and manual reforms carried out by DGCA and endorsed

ALSO READ - US Aviation watchdog set to audit DGCA again

The FAA team conducted an audit for seven days. This audit follows a five-member team audit by the FAA in October 2021 that had looked into safety guidelines, including the licensing of personnel and airworthiness, during their audit.

This is not the first time FAA had audited India’s DGCA. The US agency had downgraded India to Category II in safety oversight capability in January 2014 over two key concerns: lack of training of officials and the absence of full-time flight operations inspectors on the DGCA's rolls.

A category II status meant Indian airlines will have to go through stringent scrutiny for being able to operate flights to the US.

The US agency had downgraded India to Category II in safety oversight capability in January 2014 over two key concerns

The FAA routinely performs such audits, the last of which was in October 2021 following a delay due to the COVID pandemic. This month’s audit was a follow-up on last year’s when a five-member FAA team checked the safety guidelines, including the licensing of personnel and airworthiness.

The UN aviation body International Civil Aviation Organisation (ICAO) is also expected to conduct an audit of India’s air safety readiness in 2022 and will focus on aerodromes, air navigation services, certification, aircraft airworthiness, and flight operations, airlines, among others.

Aviation regulator Directorate General of Civil Aviation (DGCA) has deregistered Air India’s four Boeing 747 jumbo jets that were not in operation since February 2020, sources said on Wednesday, April 27.

It is not clear what will be done with these four planes now. Planes as old as these 747s consume a huge amount of fuel and require extensive maintenance.

Tata Group took control of Air India on January 27 after successfully winning the bid for the airline on October 8, 2021. The salt-to-software conglomerate is expected to put in fresh order with either Boeing or Airbus for new wide-bodied aircraft for Air India.

DGCA deregisters Air India's 4 Boeing 747 jumbo jets

Till about two years ago, the aforementioned 747s were being used to operate international flights for top dignitaries such as the president, prime minister and vice president.

When they were not in service of dignitaries, the four jumbo jets were being used for international commercial passenger flights.

At around same time, 2 refurbished B777s were inducted as dedicated VVIP aircraft. Having the most sophisticated security and communication systems, these state-of-the-art jets can fly direct to almost anywhere in the world.

Planes as old as these 747s consume a huge amount of fuel and require extensive maintenance.

However, owing to the current air traffic situation due to the pandemic and the skyrocketing prices of the rise in jet fuel prices due to the Russia-Ukraine conflict, it has become tough for the airlines to maintain the planes financially. For carriers, the more viable options are Boeing 777/787 and Airbus A330/350.

Renowned for its onboard hospitality back then, Air India was quick to cash in on the novelty of the 747 by designing unique menus inspired by the four seasons (spring, summer, autumn, and winter) and converting the upper deck into luxurious "Maharaja" lounges famously branded as "Your Palace in the Sky."

The plane was deployed on the most ambitious routes and efficiently served the Indian diaspora for many decades by flying to key destinations in the west, such as the UK, US, and Canada.

With the 747s, Air India under its founder JRD Tata had set new levels of inflight luxury and introduced a new "Palace in the Sky" livery.

Emperor Ashoka - the first B747 became a part of the Air India fleet in 1971. With the 747s, Air India under its founder JRD Tata had set new levels of inflight luxury and introduced a new "Palace in the Sky" livery.

Having these 4 jumbo jets part of its fleet, Air India could retain its title as the only commercial Indian airline ever to operate 4-engine, double-decker aircraft.

While fugitive liquor baron Vijay Mallya had ordered the 4-engine Airbus A340s for Kingfisher, they never got inducted into the fleet. The airline closed operations in 2012.

New budget airline Akasa Air plans to set up a training centre for its pilots and crew as it gears up to start flights later this year, its co-founder Vinay Dube said. The 14,000 sq ft centre will come up in Gurgaon, Haryana, Dube said in an interview with The Economic Times.

ALSO READ - Flight operations of Akasa Air pushed to July

Apart from the launch delay by a few weeks, things are moving fast, according to Dube. The airline has hired staff members primarily from other airlines as Akasa needs trained personnel to get off the ground.

Akasa Air intends to set up a training centre for its pilots and crew

The airline, majority-owned by ace investor Rakesh Jhunjhunwala, has already signed up 154 pilots, 115 cabin attendants and 14 engineers to join the airline. Dube, who is also the airline's CEO, said 26 of these pilots are already on the payroll.

ALSO READ - Rakesh Jhunjhunwala’s Akasa Air signs deal for 72 Boeing 737 Max planes

Akasa, co-founded by former IndiGo president Aditya Ghosh, has ordered 72 Boeing 737 Max aircraft and plans to launch its first flight in July. Dube said the airline is yet to be summoned by the regulator, the Directorate General of Civil Aviation, for a proving flight--a precursor to its air operator's licence.

Akasa has ordered 72 Boeing 737 Max aircraft and plans to launch its first flight in July

Akasa, which is registered as SNV Aviation, received its initial regulatory approval, the no-objection certificate, on October 11 and has applied for the air operator's permit (AOP).

Dube said it would be wrong to assume that the decision to get 18 aircraft in the first year was driven by the desire to start international operations at the earliest.

Indian carriers must have at least 20 aircraft to start international flights, a criterion that Akasa Air will fulfil in its second year. Dube said the airline hopes to start international operations in the second quarter of 2023.

A British judge on Tuesday, April 26 denied a bid by Qatar Airways to reinstate a jet contract cancelled by Europe's Airbus in the latest twist to a dramatic feud playing out in UK courts.

The companies have been locked in a safety dispute for months on Europe's A350 long-haul jet. Their unprecedented bust-up widened in January when Airbus revoked a separate deal for 50 smaller A321neos that Qatar says it needs to open new routes.

ALSO READ - Airbus responds to Qatar Airways’s A350 dispute by cancelling A321 Order

UK court denies compensation to Qatar Airways for cancelled A321neos order by Airbus

The judge rejected Qatar's claim that it could not find alternatives, for example by leasing jets or deploying 737 MAX jets that it has provisionally ordered from Boeing.

ALSO READ - Qatar Airways signs a deal for 737 Max and new 777X freighters with Boeing

The decision means the world's largest planemaker is free to market the in-demand A321neos to other airlines or remove them from industrial plans to ease factory congestion, while the two sides focus on their central dispute over the safety of the A350.

Qatar has grounded more than 20 A350s after paint erosion exposed to damage or gaps in a metallic sub-layer designed to absorb lightning, which hits airliners on average once a year.

ALSO READ - Qatar Airways takes Airbus to London High Court over A350 skin damage

The Gulf carrier says this raises questions over the safety of the affected jets and is refusing to take more deliveries pending investigation while seeking USD 1 billion in compensation.

ALSO READ - Qatar airways sue Airbus for USD 618mn over A350 paint issue

Airbus, which acknowledges quality problems but insists the airplanes are safe, has retaliated against Qatar's decision to halt A350 deliveries by pulling the A321neo order.

In a breakdown of industry unity on safety, it has accused the A350's biggest customer of airing invalid safety concerns to avoid taking more jets at a time of weak overall demand.

Qatar has grounded more than 20 A350s after paint erosion exposed to damage or gaps in a metallic sub-layer designed to absorb lightning, which hits airliners on average once a year.

"Airbus is pleased that this issue is now behind it and that we can now focus on the main topic of misrepresentation by Qatar Airways of the safety and airworthiness of the A350,” it said.

Qatar had no immediate comment, but a person familiar with the carrier said the A321neo row was secondary to its safety concerns over A350 damage, which it blames on a design defect.

A Reuters investigation in November revealed the problem affected other carriers, though apart from Qatar none has taken planes out of service, except for surface repairs. 

While both sides have wagered their reputations on the A350 row, the spillover to the busier A321neo segment where Airbus leads the market had alarmed airlines, with the International Air Transport Association calling the cancellation "worrying".

Airbus won backing for its case that the two contracts are connected by a "cross-default" clause that allows it to pull the plug on one deal when an airline refuses to honour the other.

Some airline executives worry this may set a precedent allowing disputes to ricochet from one contract to another, tightening the grip of plane giants Airbus and Boeing.

"People will look at this and take extra care to resist such cross-default clauses," the head of a large airline fleet said.

The court battle has punctured the secrecy surrounding more than a decade of aircraft negotiations and taken the lid off closely guarded planning methods inside the global jet industry.

Qatar Airways was ordered to pay most of Airbus' costs on the A321neo part of the case.

Multiple industry sources say it is in neither side's interest to spark a full-scale trial, producing a flood of further disclosures and testing relations between Airbus' headquarters nation France and major energy producer Qatar, at a time when Europe urgently seeks new gas supplies.

While some sources see a glimmer of an eventual settlement, the two sides spent part of Tuesday's hearing discussing the logistics of a trial to be held as soon as early 2023, accompanied by searching demands for internal documents.

The dispute's lawyer-packed hearings mark a departure from the industry's usual reliance on closed arbitration, as one of its pivotal relationships unravels in London's High Court. The airline was ordered to pay most of Airbus' costs on the A321neo part of the case.

ALSO READ - Qatar Airways tells UK judge to reinstate Airbus A321 order or award unquantified damages

In what can be termed an effort to enhance the MRO footprint in support of nacelle and flight control repairs for the global 737 MAX fleet, Boeing Global Services has announced a new agreement with Spirit AeroSystems, Inc. and its affiliates to combine aftermarket resources.

Customer Care Contacts

With this agreement, Boeing Global Services is strategically positioned to assist all 737 MAX operators by providing lease and exchange programs to respond quickly to unforeseen events. Our business serves our customer base beyond the sale of aircraft, and now we can expand lease and exchange support for aerostructures with Spirit AeroSystems.Mini Desai, vice president of Commercial Spares and Managed Parts, Boeing Global Services

Mini Desai | Aurora Flight Sciences

The collaboration will reportedly enhance Boeing's support for nacelle and flight control surface removals with a more robust MRO footprint while combining Boeing’s industry-leading asset pool with the hands-on repair experience of Spirit AeroSystems.

Spirit AeroSystems is one of the world's largest manufacturers of aerostructures for commercial airplanes, defence platforms, and business/regional jets. With expertise in aluminium and advanced composite manufacturing solutions, the company's core products include fuselages, integrated wings and wing components, pylons, and nacelles. Additionally, the company has extensive experience with the 737 MAX as the original product manufacturer of the fuselage, thrust reverser, slats, and flaps.

Illustrative | B737 MAX | Arabian Aerospace

Reportedly, this will be the first pooling program Boeing has offered for these specific high value large structural parts.

Spirit is thrilled to be selected by Boeing Global Services as its global partner for 737 MAX aerostructures repair, including Nacelles and Flight Control Services. Over the last three years, we have expanded from a single MRO center in Wichita to five MRO centers on four continents, which will allow us to serve Boeing’s global customers locally. This strategic partnership will allow us to provide customized, high-quality MRO solutions at industry leading turn-around times for our customers’ 737 MAX nacelles and flight controls.Kailash Krishnaswamy, senior vice president of Aftermarket Services for Spirit

Kailash Krishnaswamy | Source

Reportedly, this comes as the company also manages to seal an agreement with Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) regarding repairs in mainland China.

Figures show Spirit’s Aftermarket business revenues have grown substantially from $186 million in 2019 to $239.9 million in 2021, and it is aiming to grow its Aftermarket business to $500 million in revenue by 2025.

SOURCE(s)

COVER: The Business Journals

The Tatas have begun the task of consolidating their airlines' businesses through a proposed merger — of AirAsia India Pvt Ltd (AAIPL) with Air India (AI) — and bringing together all these entities under one roof at a mega office in Gurgaon.

Air India has notified the Competition Commission of India (CCI) about its plan to merge AAIPL into it, thereby beginning the legal process of this consolidation. AAIPL started operating in 2014, a year before the second Tata JV Vistara and still does not have the right to fly abroad.

Air India intends to purchase a 100% stake in AirAsia India

Air India Limited, along with its wholly-owned subsidiary, Air India Express Limited (AIXL), is primarily engaged in the business of providing- domestic scheduled air passenger transport services; international scheduled air passenger transport services; air cargo transport services in India, and charter flight services in India.

“The proposed combination relates to the acquisition of the entire equity share capital of AAIPL by Air India, an indirect wholly-owned subsidiary of Tata Sons Private Limited (TSPL). At present, TSPL holds 83.67% of the equity share capital of AAIPL. The proposed combination is notifiable under… the Competition Act, 2002.”Competition Commission of India (CCI)

AAIPL is a joint venture in which Tatas have an 83.67% stake and the remaining 16.33% switch to AirAsia. “The Proposed Combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of how the relevant markets are defined,” it adds.

AAIPL is a joint venture in which Tatas have an 83.67% stake and the remaining 16.33% switch to AirAsia.

As per the notification, Air India has submitted the relevant markets, concerning horizontal overlaps. These are the market for domestic passenger air transport services in India, the market for the provision of domestic air cargo transportation services in India, and the market for the provision of charter flight services in India.

It has also additionally submitted the relevant markets involving vertical overlaps. These are:

The upstream market for ground handling services, and downstream market for passenger air transport services (including charter flight services) at the Bengaluru, Hyderabad, Delhi, Thiruvananthapuram and Mangalore airports; and the upstream market for cargo handling services at Bengaluru airport.The upstream market for cargo handling services, and the downstream markets for air cargo transportation services and charter fight services at Bengaluru airport.The upstream market for in-flight catering services, and the downstream market for passenger air transport services (including charter flight services) in India.

Tata-owned all the 4 airlines coming under one roof

Additionally, the Tata Group has begun to move to have greater synergy between its four airlines by shifting them to one mega office in Delhi’s suburb of Gurgaon. It has identified an office space of up to 70,000 square feet which can be leased “immediately”.

Working with Tata Realty, the group is now finalising its office requirement and plans to start the transition at the earliest.

Considering the existing 4 (airlines) and one JV (AI-SATS) as part of the Tata fold, it has been decided that to optimise resources, increase teamwork and have higher synergies at work, the various entities will move together into a complex in Gurgaon to start with as far as possible in a phased manner.

"New office space on NH8 has already been identified where we have an option to lease up to 700,000 sq ft immediately,” a communication sent to the heads of these five Tata aviation entities says.

“We now need to finalise our exact space requirement and start planning the transition to this new space immediately. We are targeting to move in the next 2-3 months. For this purpose, to develop the strategic plan, the task has been entrusted to Harpreet A De Singh, ED headquarters, along with the Consultants from Ernst and Young,” it adds.

The entities have been asked to give information about their required office space to this team “promptly, to facilitate this strategic transformation and consolidation at the earliest.”

A team from Tata Realty - the group’s real estate firm is working on the project led by its Managing Director and CEO Sanjay Dutt. Consultancy firm EY has also been roped in for the project.

Air India currently has its headquarters at Airlines House situated in Central Delhi where it shifted from the iconic Nariman Point Building in Mumbai in 2013. The airline’s low-cost subsidiary Air India Express is based out of Kochi.

Tata Group-owned AirAsia India is based out of Bengaluru while Vistara, its joint venture with Singapore Airlines is based out of Gurgaon.

AirAsia India is based out of Bengaluru while Vistara is based out of Gurgaon.

This shift will consolidate Gurgaon’s pre-eminence in Indian aviation as it already houses IndiGo and SpiceJet. Mumbai, one the hub of airline headquarters, now houses a few relatively big airlines like GoAir.

The Tata Group had taken over Air India and Air India Express this January-end. It is yet to spell out the consolidation among the four airlines.

The options are - a low cost by merging Air India Express and AirAsia India, Air India and Vistara; one full service and a low cost; Air India (merging all three) and Vistara till the latter’s 49% stakeholder Singapore Airlines agrees to a merger with AI. The group is trying to get a CEO for its airline business to finalise the future course of action.