DGCA Suspends Official Accused of Taking 'Bribe' from Flying Schools

A whistleblower complaint alleging corrupt activities by a DGCA official, including taking training aircraft and cash as a bribe, reached the civil aviation ministry late last month. A departmental transfer and a preliminary enquiry later, the official was suspended by the government on Wednesday, November 22.

"The President in exercise of the powers conferred by sub-rule (1) of Rule 10 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965, hereby places the said Capt. Anil Gill posted in Directorate of Aerosports under suspension with immediate effect," said DGCA in an official statement.

Gill's suspension comes after a recommendation by a vigilance committee established by the Directorate General of Civil Aviation (DGCA) conducted its preliminary investigation into allegations of corruption. In the wake of the graft allegations, the DGCA has also started carrying out a reshuffle of duties of various officials and transferring them to different centres.

Anil Gill, former Director of the Flying and Training Division (DFT) at the DGCA, is alleged to have misused his authority to obtain three aircraft as bribes from flying schools. During the period of suspension, Gill should be in the national capital, the order said. During the period of suspension, Gill should be in the national capital, the order said.

The complaint, which was submitted to the DGCA on October 25, claimed that Gill had used his position to compel pilots and flying schools—technically known as flying training organisations, or FTOs—to pay kickbacks to businesses associated with him in exchange for his company's promise to turn a blind eye if the pilots' actions were discovered to have broken regulations.

"There is zero tolerance towards malpractices. Any such issue will always be dealt with by the strictest measures by the law," says the Union Civil Aviation Minister Jyotiraditya Scindia.

In some cases, FTOs that could not pay the bribe Gill sought sold their aircraft at “nominal prices” to the companies linked to him -- Bluethroat Aero Global and Sabres Corporate Solutions. These companies would then lease these mostly light aircraft for flight training to other FTOs at rates in the vicinity of INR 90 lakh a year.

As DFT, Gill was authorised to approve FTOs, where training is necessary for someone to become eligible for a commercial pilot licence. The complaints against Gill surfaced after five aircraft of Redbird Aviation, the largest flight school have crash crash-landed in the last six months due to engine failure. Investigations have found that the planes were not maintained properly and the trainers were not complying with critical safety rules of DGCA.

Company records showed that two companies Blue Throat Aviation and Sabres Corporate Solutions Limited which has Gill’s sister-in-law and brother-in-law as directors have leased at least two aircraft to Redbird Aviation. The aircraft VT-EUC, and VT-AAY are Cessna aircraft which are popular among flight training schools.

Last year, when DGCA audited all flying training schools in India after multiple accidents, Gill was in charge of the process. In 2019, the DGCA directed its officers not to audit or investigate companies where there is a conflict of interest.

Suspension of RedBird Flight Training Academy

On November 22, DGCA suspended the authorisation of RedBird Flight Training Academy for carrying out maintenance of its aircraft after finding deficiencies in an audit carried out in the wake of two incidents of crash landing last month. After the two incidents of aircraft crash landing within one week in October, the DGCA suspended the operations of Redbird Flight Training Academy at all its bases.

A special maintenance audit was carried out at the training academy's main base in Baramati, Maharashtra and four sub-bases in Seoni, Madhya Pradesh; Kalburgi and Belgavi in Karnataka; and Lilabari, Assam.

"The findings from the special maintenance audit revealed deficiencies in personnel training, maintenance schedules and records, internal audit practices, tool and store management and fuel storage and handling," DGCA said in a release.

Subsequently, the regulator initiated enforcement action against the training academy and a show cause notice was issued. DGCA has reviewed the corrective actions taken by Red Bird Flight Training Academy Pvt Ltd on the findings of the maintenance audit. The review has indicated that the flying training organisation has failed to continuously adhere to the provisions of Aircraft Rules, 1937 and Civil Aviation Requirements to ensure proper maintenance of the aircraft for ensuring continued safe operations. "Accordingly, recertification of the maintenance organisation and continuous airworthiness management of M/s Red Bird Flight Training Academy Pvt Ltd is being undertaken afresh by DGCA," the statement said.

In a significant turn of events, AirAsia X, the low-cost long-haul carrier, has successfully exited PN17 status, marking a crucial milestone in its financial recovery journey. The move, effective November 22, comes after a recent Bursa Malaysia filing on November 21, highlighting the airline's resurgence from financial distress.

Background and Financial Struggles

One month ago, Bursa Malaysia declined to lift AirAsia X's PN17 status, a classification reserved for entities in financial distress. This decision came in the wake of a disclaimer of opinion by auditors Ernst and Young in the carrier's financial statements, prompting the need for a regularization plan to avert delisting. AirAsia X, however, appealed this decision, leading to a comprehensive review by the stock exchange.

Persuasive Financial Performance

The turning point for AirAsia X was its announcement of an after-tax profit attributable to the equity holders in its latest quarterly results. The airline reported a net profit of MYR5.6 million (USD1.2 million) in the third quarter against revenues of MYR648.4 million (USD138.4 million). This robust financial performance played a pivotal role in persuading Bursa Malaysia to lift its PN17 status.

AirAsia X's chairman, Mahmood Fawzy, expressed satisfaction with the decision, emphasizing the substantial efforts made by the company. "AirAsia X was a PN17 company for more than two years, and colossal efforts were made; we completed a debt restructuring exercise amid a global lockdown," he stated. Fawzy also expressed optimism about the future, anticipating new opportunities for the airline.

Financial Resilience and Growth Plans

With five consecutive quarterly profits, AirAsia X is showcasing financial resilience. As of September 30, the carrier's cash balance stood at MYR119.6 million (USD25.5 million), reflecting a 2% improvement from the second quarter. Shareholders' equity also witnessed a positive trend, increasing by 6% to MYR102.5 million (USD21.9 million) during the same period.

Looking ahead, AirAsia X is set to expand its operational fleet, with plans to increase the number of A330-300s to 17 by the end of the year. The airline currently operates to 20 airports from its Kuala Lumpur hub, providing over 110 weekly flights.

Conclusion

AirAsia X's successful exit from PN17 status marks a triumph over financial challenges and underscores the airline's commitment to financial recovery. The positive quarterly results and strategic efforts made by the company have paved the way for a new chapter, bringing optimism and new opportunities for AirAsia X in the aviation industry.

With Inputs from ch-aviation

On November 22, 2023, Boeing announced a significant development in its aviation endeavors as the U.S. aviation regulator, the Federal Aviation Administration (FAA), granted type inspection authorization for the certification flight testing of the Boeing 737 MAX 10. This marks a crucial step for Boeing as it strives to compete with its European rival Airbus in the narrowbody market.

Certification Flight Testing Approval

Boeing's shares experienced a 1.1% increase in midday trade following the FAA's confirmation of type inspection authorization for the 737 MAX 10. This milestone is integral to the certification process, signifying the commencement of flight-testing involving FAA pilots. The authorization is granted after a thorough examination of technical data, allowing the aircraft to move closer to certification for normal operations.

Boeing's Perspective

In a letter addressed to employees, Boeing executives Mike Fleming, Ed Clark, and Wayne Tygert expressed the significance of this achievement. They highlighted that the 737 MAX 10, the largest variant in the 737 MAX family, is poised to enter passenger service worldwide once certified. Boeing's development programs' senior vice president, Mike Fleming, emphasized the milestone's importance in the competitive narrowbody market.

Market Dynamics

The 737 MAX 10 is positioned as Boeing's response to Airbus's A321neo, which has historically dominated the top end of the single-aisle market. The battle between Boeing's MAX 10 and Airbus's A321neo has been closely watched, with both aviation giants vying for supremacy in this lucrative market segment.

Schedule Adherence

Boeing executives reassured stakeholders in October that the schedule for the 737 MAX 10 remains on track. The plan includes certification and the first delivery of the aircraft in 2024. However, they emphasized that safety considerations would dictate the certification timeline, underscoring the commitment to ensuring the aircraft's safety before entering commercial service.

MAX 7 Certification Status

While the focus is on the MAX 10, Boeing's MAX 7, the smallest variant in the 737 MAX family, is awaiting FAA certification, expected by the end of 2023. The delivery timeline for the MAX 7 has been extended to 2024, as announced by Boeing in July.

Testing and Performance Metrics

Boeing provided insights into the testing progress of the MAX 10, revealing that the aircraft has completed over 400 flights and accumulated nearly 1,000 flight hours during the test program. These testing metrics are crucial indicators of the aircraft's performance and reliability under various conditions.

Conclusion

The FAA's approval for the certification flight testing of Boeing's 737 MAX 10 marks a significant milestone for the aerospace giant. As the company strives to compete with Airbus in the narrowbody market, the successful certification of the MAX 10 is anticipated to enhance Boeing's position in the aviation industry. With safety as the top priority, Boeing is on track to deliver the MAX 10 to operators globally, continuing the fierce competition for dominance in the single-aisle aircraft market.

With Inputs from Reuters

In a pivotal moment for the beleaguered Indian airline Go First, lenders are set to vote on a proposal for liquidation following the expiration of a bid deadline with no prospective suitors. The decision comes after the Committee of Creditors convened to determine the future course of action for the airline, which filed for bankruptcy protection in May. The absence of interested buyers has spurred a growing inclination among lenders to opt for liquidation over restarting the insolvency process.

Bid Deadline Lapses with No Takers

The fate of Go First hangs in the balance as lenders grapple with the stark reality of no suitors expressing interest in the airline. The recent expiration of the bid deadline marked a critical juncture for the company, prompting the initiation of discussions among the Committee of Creditors.

Proposal for Liquidation Takes Center Stage

Sources reveal that a proposal to liquidate the insolvent airline has been put forth, signaling a potential end to the protracted struggle for Go First. Individual lenders are now tasked with taking the proposal to their respective boards, with final votes expected to be submitted within the next 10-15 days.

Financial Strain and Creditor Exposure

Go First, burdened by financial woes, owes a staggering 65.21 billion rupees ($785.6 million) to its creditors. Notable among them are the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank. The financial strain, coupled with the absence of viable bids, has propelled the consideration of liquidation as a pragmatic alternative.

Jindal Power's Decision Adds to Woes

In a further blow to Go First's prospects, Jindal Power, the sole company whose expression of interest was accepted by creditors, has opted not to follow through with a bid. This setback underscores the challenging environment the airline faces in securing a lifeline.

Legal Tussles and Collateral Concerns

Complicating matters for Go First is a legal dispute with lessors, exacerbated by a moratorium imposed by Indian courts preventing the repossession of planes. While a recent amendment to India's insolvency rules potentially allows lessors to reclaim their aircraft, the retroactive application of this change remains a point of contention in the ongoing legal battle.

The Case for Liquidation

Lenders, confronted with the reality of diminishing options and legal complexities, are increasingly leaning towards liquidation as the most viable recourse. The absence of suitors, coupled with the potential cost savings associated with avoiding protracted legal battles, has strengthened the argument for opting for liquidation.

Conclusion

As Go First's lenders navigate the challenging landscape of insolvency, the looming vote on the proposal for liquidation marks a critical juncture for the airline. The financial strain, lack of interested suitors, and legal entanglements have collectively pushed the Committee of Creditors towards considering the most pragmatic option in the face of adversity. The coming days will reveal whether the troubled airline will find a lifeline or succumb to the inexorable path of liquidation.

With Inputs from Reuters

In a recent announcement on November 23, 2023, IndiGo, India's leading budget carrier with a dominating domestic market share of over 62 percent, revealed its ongoing evaluation of options for potential premium class offerings. The airline, known for its cost-effective services and operational efficiency, is gearing up for a significant expansion, backed by a robust fleet of more than 330 aircraft, with an additional 970 planes on order.

Continuous Evaluation of Options

IndiGo, in response to the circulating reports, emphasized its commitment to evaluating various possibilities for enhancing passenger experience. The airline's official statement on the matter asserted, "We are always in the process of evaluating options available. As a policy, we do not comment on speculations and will share any information if and when we have anything to share."

Expansive Fleet and Operations

The backdrop against which this statement was made reveals IndiGo's strategic vision for growth. The airline has been expanding its operations aggressively, solidifying its position as a key player in the aviation industry. With a current fleet exceeding 330 aircraft and an impressive order book of 970 planes, IndiGo is poised to further strengthen its market presence.

A321 XLR: A Game-Changer

Central to IndiGo's expansion plans is the eagerly anticipated A321 XLR, an extended-range variant of the Airbus A321neo. The airline is expecting the delivery of these advanced aircraft in late 2024 or early 2025. According to IndiGo CEO Pieter Elbers, the A321 XLR will play a pivotal role in expanding the airline's reach, enabling it to connect with new destinations in Europe and Asia.

"XLR will help us expand our range... when XLRs come in, that can bring us further into Europe to places like Athens... it can bring further into Asia to places like Seoul...," stated Pieter Elbers during a recent interaction on November 6.

Premium Class and Loyalty Program Speculations

The recent buzz around IndiGo's potential introduction of a premium class on its A321 XLR flights and the launch of a loyalty program has stirred considerable interest in the aviation community. While the airline refrains from confirming these speculations, industry observers speculate that such moves could be part of IndiGo's strategy to cater to a broader range of passengers and enhance customer loyalty.

Conclusion

IndiGo's proactive approach to continuously evaluate options and its strategic expansion plans underscore the airline's commitment to staying at the forefront of the competitive aviation landscape. As the industry eagerly awaits the arrival of the A321 XLR fleet and potential enhancements to passenger services, IndiGo's journey reflects a dynamic and forward-thinking approach, setting the stage for exciting developments in the world of aviation.

Scores of cabin crew members of Air India Express have expressed concerns about the decision on room sharing during layovers, claiming that such a move poses various difficulties in getting uninterrupted rest before flight duty. At the same time, the airline has said that room sharing is consistent with the market practice followed by many other carriers.

Besides, cabin crew members have expressed concerns about the curtailment of service contracts of some members as well as about the assessment process at the airline, according to sources.

Earlier, at profit-making Air India Express, which is in the process of merging loss-making AIX Connect (formerly AirAsia India) with itself, a cabin crew was given a room at a five-star or a four-star hotel at outstations. Now, one room is shared by two cabin crew members.

Currently, Air India Express and AIX Connect together have more than 5,500 employees and around 1,800 cabin crew members.

The sources said that scores of cabin crew members have written to the airline management regarding room-sharing practices and other issues. According to an e-mail sent by a cabin crew member to senior officials of Air India Express, there are various difficulties in getting uninterrupted rest before operating a flight due to a room-sharing decision.

The e-mail has also claimed that the contracts of many cabin crew members have been curtailed to one year from five years and that curtailment is creating an unpleasant work atmosphere.

In response to a detailed set of questions, including about the steps being taken by Air India Express to address the concerns, an airline spokesperson cited the ongoing integration of AIX Connect and aligning of the practices across the two carriers.

What Airline Has to Say About the Allegations?

"As a part of the ongoing integration between AIX Connect ( formerly AirAsia India) and Air India Express, the policies and practices across the two entities are being aligned. This includes crew members sharing rooms on layovers. This is consistent with the market practice followed by many other airlines in India and the region," the spokesperson told PTI.

Both airlines are owned by the Tata Group. Further, the spokesperson said the airline has a dedicated and open internal communication platform and a culture that encourages and solicits opinions to better inform all decisions.

"Understandably, some crew members have expressed a differing view about the standardisation of this consolidated policy. We remain committed to listening to and engaging with all stakeholders on such matters in the course of our large-scale transformation and growth, which ultimately affords all our employees with much greater prospects and benefits, all things considered," the spokesperson said.

The spokesperson also said the airline is actively incorporating industry best practices to ensure that employee benefits are in line with market standards. The company has harmonised the structure, salaries, and benefits for cabin crew members at a group level, while also providing opportunities for them to increase their earnings through performance enhancements and customer satisfaction, the spokesperson added.

Concerning the decision on room sharing, some cabin crew members have also cited the recent incident in Udupi where a female cabin crew member of Air India Express and her three family members were killed by a male cabin crew member. The incident happened on November 12.

In the detailed questions, PTI mentioned the incident and also the claim that the accused had shared a room with another cabin crew member and at that time also, the accused had created a nuisance. There was no specific response from the airline.

On the incident, Air India Express, last week, said, “This incident deeply saddens us and we are extending our full support to the bereaved relatives of the dead. We will provide our due cooperation in the investigation. In light of this incident, we have derostered the accused with immediate effect".

International budget carrier Air India Express and domestic low-cost airline AIX Connect are owned by the Tata Group, which is in the process of consolidating its airline business. Under the consolidation plan, Air India Express is merging AIX Connect with itself while full-service carrier Vistara will be merged with Air India.

Earlier this month, Air India Express Employees Union (AIXEU) in a letter to civil aviation minister Jyotiraditya Scindia mentioned various grievances about the airline's cabin crew members.

(With Inputs from PTI)