Drone manufacturers boost offerings after PLI scheme

Radhika Bansal

04 Oct 2021

Drone manufacturers and service providers are expanding their product lines and hiring to meet increased demand, which is expected to accelerate with the government's production-linked incentive (PLI) scheme, which is expected to lower drone prices even further.

Companies such as Aarav Unmanned Systems, ideaForge, Global Alternative EV & Drone, Grene Robotics, Skylark Drones, and Skye Air Mobility said their sales have grown 3-5 times in the last year, and they are all increasing their team sizes.

Several international drone makers are also eyeing the market, said Mughilan Thiru Ramasamy, chief executive of Skylark Drones that provides software for drones. “We anticipate they will set up shop in India soon.”

(Image Courtesy - Tech Story)

Aarav Unmanned Systems, a Bengaluru-based drone manufacturing and end-to-end drone services company, plans to add 500-600 people in the next year.

Most of those hired will be drone pilots, while some additions will also be made to the engineering and fabrication manufacturing teams, its chief executive officer Vipul Singh said.

The company, which supplies drones to Tata Steel and national mapping and surveying agency Survey of India among others, said demand had grown 5x last year.

There is significant demand for surveillance and defence uses as well. Many companies and the government seeking to protect their assets from drone attacks after a drone attack on the Indian Air Force station in Jammu in June.

There is significant demand for surveillance and defence uses as well. (Image Courtesy - The Diplomat)

Informing the media about the key features of the PLI Scheme, Civil Aviation Minister Jyotiraditya Scindia stated that the PLI scheme will provide incentives worth INR 120 crore over the next three years. This sum is 1.5 times the total size of the drone manufacturing industry.

The minister said earlier this month that a three-year investment worth INR 5,000 crore will be made in manufacturing sector drones, resulting in a turnover of INR 900 crore and 10,000 job opportunities.

The government recently issued a notification regarding INR 120 crore production-linked incentive scheme for drone manufacturers. It’s expected that the drone companies are likely to invest around INR 50,00 crore on the back of this scheme.

Airframes, propulsion systems (engine and electric), power systems, batteries and associated components, launch and recovery systems, Inertial Measurement Units, Inertial Navigation Systems, flight control modules, and ground control stations and associated components are all covered by the PLI scheme. Apart from 'Detect and Avoid' systems, emergency recovery systems, trackers, and other components critical for safety and security, the PLI scheme also includes communications systems (radiofrequency, transponders, satellite-based, etc.), cameras, sensors, spraying systems, and related payload, as well as 'Detect and Avoid' systems, emergency recovery systems, trackers, and other components.

(Image Courtesy - Wired)

To encourage MSMEs and start-ups to manufacture drones and parts, the annual sales turnover has been set at INR 2 crore (for drones) and INR 50 lakh (for parts) (for drone components). This will enable a greater number of people to benefit. The annual sales turnover threshold for non-MSME companies has been set at INR 4 crore (for drones) and INR 1 crore (for other products) (for drone components).

According to MoneyControl, a senior analyst from Goldman Sachs observed there is a lot of scope for the American and Indian defence industries for co-production and co-development drones in India.

Cover Image Credit - Live Law

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B-737 MAX aircraft racks up a parking bill of INR 5.5 crore

Radhika Bansal

04 Oct 2021

At Kolkata airport, a SpiceJet Boeing B-737 MAX 8 aircraft racked up a parking fee of INR 5.5 crore.   For the past 30 months, VT-MXA has been stationed at the Kolkata airport.

The SpiceJet aircraft delivered to the airline in Kolkata on November 2, 2018, was only four months old before it was grounded worldwide due to two crashes.

“The SpiceJet B-737 Max 8 aircraft have been stationed at Kolkata airport since March 13, 2019. Now that the regulators have started allowing resumption of operations with the narrow-body aircraft, SpiceJet is planning to operate the grounded aircraft again from October 5. Once the plane rolls out of the bay, the airport will hand over the parking charge bill to the airline."Kolkata Airport Official told The Times of India

SpiceJet had flown the 737 Max for around 6,300 hours before it was grounded in March 2019.

In August, the DGCA lifted the aircraft's ban, allowing it to fly again.

SpiceJet had flown the 737 Max for around 6,300 hours before it was grounded in March 2019. (Image Courtesy - The Print)

The pilots are also undergoing training at the SpiceJet Training Academy in Gurgaon and the Boeing Simulator facility in Noida. The first batch of 20 pilots has already completed their “requalification syllabus”. The airline had over 350 pilots who were trained or qualified on the MAX at the time when the aircraft was grounded.

The airline is spring cleaning the cabin and preparing it for returning to the skies after almost two-and-half years.

The airline has been carrying out preventive maintenance of the aircraft that weathered multiple cyclones including Fani, Bulbul, Amphan and Yaas during its stay in Kolkata. With the aircraft now set to take off again, the cabin is undergoing a spring cleaning and being aired to drive away any hint of mustiness.

(Image Courtesy - Aviation Voice)

Because of two deadly crashes reported in a five-month period, an order dated March 13, 2019 banned all B737 Max operations in India.

The newest member of Boeing's 737 narrow-body family, the 737 Max, crashed in the Java Sea shortly after takeoff from Jakarta, Indonesia, in October 2018. Then, in March 2019, another plane of the same model crashed in Ethiopia. Both plane crashes claimed the lives of 346 people. The crashes were investigated and found to have errors in the plane's piloting system, lapses in Boeing's safety procedures, and cover-ups by company officials.

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Tata VS Indigo- Clash of the titans

Prashant-prabhakar

04 Oct 2021

If all goes well and the stars are aligned right, we can all expect an imminent takeover of Air India by the Tata Group. If reports are to be believed, post acquisition of Air India, the Tata Group plan of a merger between Vistara, Air Asia India and Air India express. The merger would drastically alter the entire roadmap of Indian aviation.

Although Indigo remains the strongest player in the industry, the possible-acquisition of Air India comes at a time when Indigo is at its weakest. The no-frills carrier has registered record losses during the fiscal 2021 and most of its aircrafts have been grounded due to the pandemic. Fleet size, can be a huge advantage in normal scenarios but at times like these, it can prove to be quite the opposite as well.

FL360aero

With a combined loss standing at ?10,000 crore for the past 6 quarters, it has the most aircrafts grounded as compared to other carriers in the country. Additionally, it has a lot of spare first officers. This, has led to quite a contention amongst its pilots and crew.

The SG and G8 pilots are much better; they are being paid peanuts but still working hard to revive their carriersA senior management at the airline.

Inside reports suggest that they are getting paid to just 35-40% of what they were previously taking home and running a constant commentary over WhatsApp where they compare themselves with what the senior management earns.Apparently, the management continues to enjoy perks and benefits while the rest are on leave without pay.Management, on the other hand, counter by saying pilots are free to do their personal work on days when they aren't flying while the management have to show up to work at all times. Who, then, has a better balance between work and life, is what they ask.

Business Today

The Tata could well topple the current reigning player, if IndiGo fails to get its act together soon. This is not to say the Tatas' are playing on an entirely clean slate.

To begin with, the Tata Group have not managed to set a stellar example with their two existing airlines—Vistara and Air Asia. Reports show more shortcomings and failures in the way TATA has managed both the airlines so far. From their choice of CEO and overall strategy, Tata seems to have played their cards in a not-so-efficient manner. Almost all the CEOs brought in from either Singapore (for Vistara) or from Malaysia (for AirAsia India) have proved less than adequate—if not disasters—for the carriers concerned. Obviously, the demographics of Indian Aviation is not for the ones under-versed with the nuances of the country's aviation sector.

Apparently, there's a dearth of managerial talent in the country  and this is reflected in Indigo's choice in the past years- years—right from Bruce Ashby to set up the right systems and even Rono Datta and others to steer through.Long story short, even with the face value that it brings along with it, the Tata group wouldn't find it any easier to navigate through a new entity that is liable to emerge post acquisition of Air India.

Should Indigo, known for its aggressive industrial tactics, be cautious just as yet? Perhaps not, but it is always better to not let the guards down and get caught off-guard later on.

Will Air India be able to stand tall against all odds, 62 years later after it was founded initially? Let us know your thoughts in the comments below.

COVER: AeroTime Hub

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Is it possible to reconvert a converted freighter aircraft ?

Prashant-prabhakar

03 Oct 2021

The global pandemic not only suppressed air travel but also clamped down heavily on all the aircrafts that once adorned the skies. Not surprisingly, the number of unused passenger aircrafts boomed at an uprecedented rate. Sadly, airlines around the world were forced to push their aircrafts into storage indefinitely .Owing to the pandemic, there's been a parallel increase in demand for emergency supplies around the world.Consequently, it lead to the rise of passenger to freighter (P2F) conversions and the cargo market has seen a surge ever since.

According to various reports, including the ones by IATA, full travel recovery is still far away meaning airlines that converted their aircrafts into freighters have little to worry about.Converting passenger aircrafts into freighters is an age old practice. Airlines like UPS have their entire fleet consisting of converted freighters. With the onslaught of the pandemic, this trend only went uphill and conducting P2F conversions became a necessity and a growing stream of revenue for MRO companies.In response, multiple centres of conversion centres were established.

Full travel recovery is still far away, meaning that companies that got rid of their older passenger jets are probably not going to regret itIATA

Why convert aircrafts in the first place ?

Aircrafts are converted for a variety of reasons some of which are for the restoration of vintage airliners.

Aircrafts tend to become a sought-after antique, generally when they approach the end of their airframe cycle. Chances are high that the last surviving examples of a particular aircraft model will be in a freighter configuration. Aviation geeks prefer seeing such models restored to their past glory and in which case, process of restoration usually involves deconversion. 

The Flying Lockheed L-1649 Starliner, a variant of the classic Constellation from the 1950s. The aircraft no. N7316C, which is, as of late 2021, being restored by Lufthansa (LHAB) (LHA), was turned into a freighter in late 1960s. It was eventually abandoned in the 1980s and picked up for restoration and deconversion a few decades later

The last two Douglas DC-4s, operated by South African Airways (SAA), experienced a similar fate. Although never converted per se, they were predominantly used as freighters by various airlines and the military. In the 1990s, SAA purchased the two planes and began work on their restoration. Not only was a 1940s vintage SAA livery added, but the interior was restored to its original configuration as well

These are classic examples of conversion due to specific circumstances. Reconverting a new plane is a different ball game altogether and is quite a daunting task as well.

UPS's back and forth attempts to conduct passenger flights in the mid 90s is one of the many interesting examples. The airline converted six of its 727-100QFs into makeshift versions of the 727-100QC, so that the aircraft could be employed as airliners on weekends when demand for cargo services was low. Lavatories and other amenities were permanent, but the seats could be loaded on pallets through the cargo door, completely transforming the fuselage. The aircraft operated in this manner for half-a-decade, before eventually being retired in the early 2000s.

Most of the P2F conversions that take place are irreversible, although there are some rare exceptions.The US charter airline USA Jet Airlines which operated a McDonnell Douglas DC-9 (N195US) is a perfect example of a passenger converted into a freighter and into a passenger back again. The aircraft is almost 50 years old and is still operational.

Flickr

There is also an example of an Austrian Airlines B767 being converted into a freighter and then later being retrofitted to carry passengers again.At the beginning of the pandemic, airlines around the world met cargo needs via passenger aircrafts, by removing seats to allow more space for freight. "Re-converting" back to the initial configuration is easier in this case and many airlines reverted  as soon as passenger travel bounced back.

Summarizing, it is possible to reconvert an aircraft that was once configured to be a freighter, although such occurences are very rare.

COVER: Aviation International News

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Indigo- a force to reckon with

Prashant-prabhakar

03 Oct 2021

Indigo started the year with a bang with the announcement of flights to seven new stations. This was, indeed, a surprise unveiling, considering the carrier's monopoly in Kurnool and duopoly in Bareilly. At the remaining 5 other stations, its been competing with Spicejet in one way or the other.

Spicejet, which had a monopoly in Dharbhanga earlier, Indigo managed to grab that position too. Additionally, it also entered the likes of Air India and SpiceJet at Rajkot and Durgapur.Furthermore, It also managed to grab a spot in Leh , the only station where it didn't have a base, along with AirAsia India.

The New Indian Express

Since then, Indigo has proved to be just about everywhere Spicejet seemed to be, with the carrier re-launching flights to Jabalpur and Gwalior- 2 halts were Spicejet had a strong presence. Come 10th of October, Indigo would be launching its 10th new station in Kanpur which again, is currently monopolized by Spicejet.Not only Spicejet but FlybBig also faced the brunt when it started it's operations from Indore. Known for its aggressive tactics, Indigo managed to outdo Flybig too, with FlyBig now moving its sole aircraft to Guwahati, operating all but one route under the RCS-UDAN scheme.Careful analysis of the trends show just how methodically Indigo has been playing its cards to eliminate most, if not all, of its  rivals. Spicejet vacating Agartala, Coimbatore and recently, Rajkot, are standing testimony to this.

As per the approved Summer Schedule for 2021 released by regulator DGCA, SpiceJet has a monopoly or duopoly (with Air India) at Adampur, Dharamshala, Jharsuguda, Kandla, Kishangarh and Pakyong, all of which are  under RCS-UDAN routes. Apparently, Jabalpur and Bhavnagar are the only two airports where Spicejet could survive against its arch rival.Now that Indigo has an ATR base in Delhi, place like Dharamsala could well be on Indigo's cards as ATRs are more preferred for regional air connectivity. With most of the top destinations lost to its arch nemesis, what was Spicejet possibly left with? Apparently, only Agartala and Coimbatore are just two of them.

As is seen, Spicejet doesn't appear to be a capacity carrier at any of the top 20 airports in the country.

IndiGo ATR 72-600 | Airlinesfleet.com

What could possibly be pushing the airline behind?

One probable reason is the difference in the fleet size.

The Economic Times

SpiceJet operated an average of 158 flights per day in July, while IndiGo operated 874 flights per dayData reports by DGCA

Indigo, over the years, has managed to graduate from being a point to point LCC to a network carrier now. Also, other non-LCC type features, such as corporate bookings and deals has led Indigo grab the spot that it holds today.

COVER: Amar Ujala

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Air India Pilot Union requests resumption of flight pay

Radhika Bansal

02 Oct 2021

The Indian Pilots' Guild (IPG), the Air India Boeing pilots' union, wrote to Rajiv Bansal, the new aviation secretary and their former chairman and managing director (CMD), on Friday, October 1, requesting that their pay cuts be restored, citing a significant reduction in Covid-19 cases.

The news comes as the government nears completion of the divestiture of its entire stake in national carrier Air India, it's subsidiary Air India Express, and a 50% stake in ground handling firm Air India SATS Airport Services Pvt. Ltd. (AISATS).

(Image Courtesy - India Today)

They also requested that the authorities reinstate the ‘full boards facility' (three-time meal allowance for pilots on domestic and international layovers), which the company had previously announced would be discontinued via email.

Keeping in mind the improvement in the Covid-19 pandemic situation, competent authorities decided to discontinue full board with effect from midnight on September 30, 2021, within India and 11 other countries, including the United States and Canada, according to an email sent to pilots on Thursday night.

“With the advent of the pandemic, our layover sustenance allowance was drastically cut to approximately one-third of its original sum resulting in a 60–70% cut. Furthermore, our flying allowance was cut by 40%, only in theory, in practice, this cut surmounted to 70-80% due to the significant reduction in the number of flying hours allotted to each pilot,” read the letter.

(Image Courtesy - NDTV)

The pilots reiterated that they operated the Vande Bharat flights and emergency evacuation missions despite their ‘harsh’ pay cuts.

The pilots' union also criticized the airline's management for its decision to retract the “full board" facility, which is providing all three meals to the pilots while on domestic or international layovers. 

IPG urged Bansal to reverse the full-board cut and also reinstate their wage structure. IPG pleaded with the management to reverse the pay cut ahead of the completion of the divestment process. 

“In the interest of the travelling public, we have ensured that to date not a single flight has been disrupted. A large number of our colleagues contracted Covid-19 abroad as a result of operating these flights. Many serious cases led to hospitalization and long term medical grounding but most tragically, a few of our colleagues even lost their lives to the disease. Yet the airline continues to operate with negligible concern for employee welfare.It is imperative to remind you once again that the above two cuts have affected us severely wherein our total emoluments have been reduced by over 60% as compared to the rest of the workforce who have had the luxury of working from home through the pandemic and yet enjoyed the benevolence of a gentle pay cut to the tune of 10%.Eighteen months along, we once again highlight that the pay cut has been disproportionately implemented upon pilots. It is shameful that despite our continuous support and with the steady recovery of the aviation industry our pay scales continue to be held back and basic facilities continue to be withdrawn. Our members have endured extreme hardship due to the unfair pay cut and as the economy and the aviation industry continue to recover it is becoming more and more difficult to sustain one's self leading to a state of desperation.Upon the eve of privatization, it would be righteous to stop the injustice and acknowledge the unending support of our members to the airline, to the MOCA and the Indian passenger. We strongly urge you to reverse this pay cut and immediately reinstate our rightful wage structure."The Indian Pilots' Guild (IPG)

Employees asked to vacate quarters

Air India has also requested that its employees vacate their quarters within six months of the airline's disinvestment. In a letter to Air India's Chairman, the Ministry of Civil Aviation stated that during a meeting earlier this month, it was decided that Air India employees can stay in their residential colonies after divestment for six months or until the property is monetised, whichever comes first. The term "disinvestment period" refers to the time period following the transaction's closing date.

(Image Courtesy - India Today)

It further added that all retired employees still residing in the colonies who have already availed of the permitted period of retention might be served an eviction notice to vacate. If anyone has been permitted retention of accommodation beyond four months, the permission will be withdrawn and they will be advised to vacate immediately.

Beyond the disinvestment, employees in possession of AI residences will not be paid house rent allowance (HRA), lease rental allowance or housing allowance.

Challange Ahead

The new owner will have to deal with a variety of issues. To begin, the new owner will have to deal with Air India's massive workforce — for example, the airline employs approximately 1,500 trained pilots and 2,000 aircraft engineers to maintain the fleet. An old Air India employee said that transitioning from the work culture of a government-owned public sector enterprise to meeting the expectations and work standards of a private sector owner will be difficult.

Air India, which is being divested by the government, comprises Air India, which primarily operates on international routes, Indian Airlines (rebranded Air India after the merger in 2007) and Air India Express, which was created in 2005 and primarily connects Kerala to the Gulf region.

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