Evektor aircraft invited to invest in Tamil Nadu

Tamil Nadu has invited Czech Republic-based light aircraft manufacturer, Evektor Aircraft to invest in the state, the State Government said on Wednesday.

Minister for MSME, T M Anbarasan during his visit to the MSV International Engineering Fair in the Czech Republic was explained about the investment opportunities available in their country by senior Government officials.

Later, Anbarasan accompanied by senior officials of the MSME department visited the manufacturing facility of Evektor Aircraft during which the Minister invited them to invest in Tamil Nadu.

Evektor-Aerotechnik is a Czech aircraft manufacturer based in Kunovice, Czech Republic. The company produces a range of light sport aircraft, training, advanced ultralight aircraft and electric aircraft.

Evektor-Aerotechnik is based at Kunovice Airport, a region known for its aircraft industry since 1936. Evektor-Aerotechnik dates back to 1970 when Aerotechnik was established as a producer of small general aviation airplanes. Its first aircraft were gyrocopters and motor gliders, later diversifying into the overhaul and maintenance of a range of Czech general aviation aircraft, including the Zlin aircraft family.

Tamil Nadu has been silently going about identifying its advantages and converting them into opportunities to emerge stronger in the aerospace and defence segments. The aim is for Tamil Nadu to emerge as the manufacturing and service hub for aerospace and defence industries in the country.

Also, Tamil Nadu-based Micro Small and Medium Enterprise (MSME) had clinched a deal with the largest aerospace firm Boeing. Aerospace Engineers Private Limited, located in Salem, won a long-term contract from Boeing to manufacture and supply critical aviation components and parts for the global aerospace company’s products.

ALSO READ - TIDCO and GE team up to establish an aviation engine technology centre in Tamil Nadu

Also, US-based aircraft engine manufacturer GE has partnered with the Tamil Nadu Industrial Development Corporation (TIDCO) to set up a Centre of Excellence in the southern state on emerging aviation engine technologies.

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VietJet recently inaugurated two new routes connecting Hanoi, Ho Chi Minh City with Ahmedabad, the largest city in the state of Gujarat in western India.

Constantly expanding the flight network connecting India with Vietnam, the carrier will operate four weekly return flights every Tuesday, Thursday, Saturday, and Sunday for each route.

The new route launch is part of its expansion plan to cover up to 17 services between Vietnam’s key cities of Ha Noi, Ho Chi Minh City, Da Nang and Phu Quoc with India’s hubs of New Delhi, Mumbai, Ahmedabad, Hyderabad and Bangalore.

The budget carrier is keen on spreading routes in India rapidly.Credit: Asian Aviation.

With a flight time of just over four hours per leg, VietJet is making it easier and affordable for Indians, and now travellers from Ahmedabad, to visit Hanoi, the capital of Vietnam, and Ho Chi Minh City, an economic icon with a vibrant pace of life.

Currently, operating 17 direct routes connecting India and Vietnam, VietJet has emerged as a pioneering airline bridging the distance and travel time between the two.

ALSO READ - Vietnam to end Covid-19 travel restrictions on international flights

Vietnam scrapped all quarantine and other COVID-related travel restrictions earlier this year to boost the country's tourism industry, and India seems pretty high on its list. It wasn't too long ago when Indians had to take connecting flights to reach Vietnam, but currently, there are many non-stop routes available between the two countries, many of those offered by VietJet.

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

VietJet currently operates an all-Airbus fleet for short and long-haul flights.

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

Recently, the airline also announced that it would soon begin flights from the coastal city of Da Nang to five Indian cities – New Delhi, Bengaluru, Hyderabad, Mumbai, and Ahmedabad.

Regional routes are quite important to VietJet. It currently operates an all-Airbus fleet for short and long-haul flights. But that will change in a couple of years with the introduction of Boeing's 737-10 MAX aircraft.

An Army Aviation pilot was killed after a Cheetah helicopter on a routine sortie in the forward area near Tawang in Arunachal Pradesh crashed. An Army helicopter flying in the forward area near Tawang, one of India’s last points on the China border, crashed during a routine sortie on Wednesday, October 5, killing one of its two pilots.

“An army aviation Cheetah helicopter flying in the forward area near Tawang crashed on 05 October (today) at around 10 AM during a routine sortie. Both the pilots were evacuated to the nearest military hospital…,” a statement released by an Army public relations officer at Tezpur in Assam said.

The statement said that while one of the pilots succumbed to injuries later, the second pilot was undergoing treatment. The Army has not revealed the cause of the air crash. “Details are being ascertained,” its statement said.

An Army Aviation pilot was killed after a Cheetah helicopter crashed in Arunachal Pradesh

Sources identified the deceased pilot as Lieutenant Colonel Saurabh Yadav.

"With regret, we inform that one of the pilots, Lt Col Saurabh Yadav, who was critically injured succumbed to the injuries during treatment. The second pilot is under medical treatment. The cause of the crash at this stage is not known. Details are being ascertained," an official statement read.

ALSO READ - IAF Mi-17 chopper crash-lands in Arunachal Pradesh, all crew safe

Arunachal Pradesh has had a history of chopper crashes in recent years, bad weather being the reason behind most of them. Since 2010, over 40 people have lost their lives in six helicopter crashes in the Northeast state. They include former chief minister Dorjee Khandu.

ALSO READ - Army helicopter crash lands in Udhampur, two army pilots killed

The ageing fleet of Cheetah and Chetak helicopters are in urgent need of replacement.

Another Cheetah helicopter of the Indian Army crashed near the Line of Control in Jammu and Kashmir in March. A pilot died in the incident while the co-pilot was severely injured. It was on a mission to evacuate an ailing soldier from a forward post.

The ageing fleet of Cheetah and Chetak helicopters are in urgent need of replacement. France, the Original manufacturer of these helicopters has already retired them from service. Chetak is the upgraded version of Cheetah.

The Army Aviation currently operates around 190 Cheetah, Chetak and Cheetal helicopters, with five of them, the oldest, being over 50 years old. A bulk of the fleet, close to 130 of the 190, are between 30 to 50 years old.

The total technical life of these helicopters will start finishing from 2023 onwards which will only further exacerbate the existing deficiencies.

This fleet is the lifeline in transporting supplies and for evacuations in high-altitude areas including the Siachen glacier. In addition to the Army, the Navy and IAF to operate these helicopters. For instance, the IAF has around 120 Cheetah and Chetak and around 18 of the more recent Cheetahs.

The total technical life of these helicopters will start finishing from 2023 onwards which will only further exacerbate the existing deficiencies.

These helicopters were inducted in the 1960s and 1970s and these form the bulk of the fleet in operation with the Indian military with around 400 of them in service. The Army operates more than 200 of these. The five-seater helicopter is designed for operation over a very wide range of weight, centre of gravity and altitude conditions. It is versatile, multi-role, multipurpose, highly manoeuvrable and rugged in construction.

Lenders to Jet Airways have agreed to waive two preconditions to facilitate the takeover of the airline by the Jalan-Kalrock consortium. In return, the consortium agreed last week to make the first tranche of its payment to lenders to get the stalled deal moving forward.

Lenders led by the State Bank of India (SBI) approved the resolution plan by the consortium in October 2020, according to The Economic Times.

However, the plan's implementation was conditional on the validation of Jet Airways' air operator's permit, approval of the business plan and, most critically, the approval to re-allot all suspended slots including bilateral and air traffic rights to Jet Airways.

ALSO RAED – Jet Airways’ lenders to get rental earnings from Jalan-Kalrock Consortium

Jet Airways to make the first tranche of payment to lenders

Jet Airways' new owners, the Jalan-Kalrock consortium, plan to gradually pay off creditors over the next few years and devised a debt settlement plan in December 2021. Back then, the owners were confident of quick progress and hoped to relaunch the airline early this year.

But opposition from lenders, among other things, has delayed those plans with no official date in sight for the launch. In fact, in July, the group of lenders, led by one of India's leading banks, even threatened the carrier with insolvency if it did not pay them the proceeds from rentals of its aircraft. But the latest reports suggest that things could start moving again.

"Because of the delay in the implementation of the plan, lenders have agreed not to oppose any plea by the consortium in the NCLT seeking a waiver of these conditions," said a person aware of the developments. "However, the completion of the deal still hinges on payments to lenders without which control will not be transferred."

Jet Airways' new owners, the Jalan-Kalrock consortium, plan to gradually pay off creditors over the next few years and devised a debt settlement plan in December 2021.

The 15-month delay after the National Company Law Tribunal (NCLT) had approved the plan has made lenders wary of the consortium's promises. "Finally, it is all about money hitting our accounts. Until that does not happen, this transaction will not go through," said a second person aware of the negotiations.

"Jalan-Kalrock has never denied transferring the money but the fact that it has taken so long raises doubts on their intentions." A person close to the Kalrock-Jalan consortium has agreed to start repaying lenders and the first tranche "will be released soon", without elaborating on either the amount or the time frame.

According to the resolution plan, the consortium offered payments of INR 380 crore in instalments and a 9.5% stake in the airline company to the lenders. The National Company Law Tribunal (NCLT) approved its plan in June 2021.

Jet Airways has missed its internal deadline of September end for the commencement of ticket sales.

Grant Thornton-backed resolution professional Ashish Chhawchha has admitted INR 7,453 crore in claims from financial creditors for which the consortium has offered payments totalling INR 1,010 crore over five years, including INR 380 crore in instalments, money from the future sale of assets and a 9.5% stake in the airline company. But the request by the consortium to waive the preconditions also has raised more doubts.

ALSO READ – Jet Airways relaunch delayed due to unresolved negotiations between the administration & engine makers

"A court order in April, allowing an extension of the effective date of the resolution plan, had cited Jet's lawyer saying all but one of the conditions - the Air Operator Permit - had been met," said a lawyer in the know. "Those included the international traffic rights and securing the domestic slots. What is Jet talking about now?"

This lawyer who has followed the case closely said that the extended effective date of the resolution plan - May 25 - has already lapsed. "Lenders have allowed the deadline to lapse in the hope that they will get their money back. If they don't soon, they will definitely take action," he added.

Jet Airways will start operations with Airbus A320 aircraft.

Jet Airways' lenders have been adamant that the airline can't buy or lease planes until the ownership is transferred; in other words, until their dues are settled. "A timeline for the repayment of dues is critical to the recovery of Jet. Lenders have so far not got anything from the consortium. Frankly, the ball is in their court," said the first person cited above.

ALSO READ – Lenders of Jet Airways threaten bankruptcy over aircraft rental revenues

Until the timeline or effective date of the debt resolution plan is provided, Jet's ownership cannot be transferred to the consortium, lenders said. Meanwhile, the airline has missed its internal deadline of September end for the commencement of ticket sales.

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Jet Airways has already bagged the AOC, and chances are that it will start operations with Airbus A320 aircraft.

(With Inputs from The Economic Times)

The Department of Financial Services (DFS) under the Union Finance Ministry has expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) to enhance the maximum loan amount eligibility for airlines under ECLGS 3.0.

This has been done to give airlines the necessary collateral-free liquidity at reasonable interest rates to tide over their present cash flow problems, according to an official statement on October 5.

The modification will allow cash-starved airlines like SpiceJet, and Go First to get more collateral-free loans under the scheme. On July 28 last year, the Aviation Ministry told Parliament that SpiceJet and Go First had borrowed INR 127.51 crore and INR 25.65 crore, respectively, under the ECLGS.

https://twitter.com/FinMinIndia/status/1577608118787538944

Under the latest modification, 100% of the fund-based or non-fund-based loan outstanding as on the reference dates or INR 1,500 crore, whichever is lower; and of the above, INR 500 crore shall be considered. This would be based on equity contribution by the owners.

Previously, civil aviation companies were allowed to borrow up to 50% of their highest fund-based credit outstanding, subject to a maximum of INR 400 crore per borrower, as against 40% of their credit outstanding as part of earlier iterations of the ECLGS scheme.

All other criteria terms and conditions parameters prescribed under the operational guidelines of the ECLGS on August 30 shall be applicable as it is. Earlier in March 2022, the Emergency Credit Line Guarantee Scheme (ECLGS) was extended from March 2022 until March 2023.

The ECLGS was announced in May 2020 in the wake of the outbreak of COVID-19 to help various sectors, especially in the MSME segment, to get credit at a concessional rate of 7%.

The Finance ministry increases credit limit for airlines under ECLGS

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Post announcement, the scheme was modified several times depending on the demand of various industries. Besides, the deadline of the scheme was extended several times to support various sectors of the economy that were hit hard due to the outbreak of the pandemic.

On August 17, the Union Cabinet approved the enhancement in the limit of ECLGS by INR 50,000 crore to INR 5 lakh crore. The additional amount is being earmarked exclusively for enterprises in hospitality and related sectors including the aviation sector. Loans worth around INR 3.67 lakh crore has been sanctioned under ECLGS till August 5, 2022.

Under the ECLGS, banks provide additional loans to existing borrowers without asking for extra collateral to help them cope with the liquidity crunch resulting from COVID curbs. These loans are also fully guaranteed by the government against credit losses.

Most Indian airlines are still facing issues such as high fuel costs and limited domestic passenger operations, and have not yet restored the salaries of their employees to pre-COVID levels.

Under the ECLGS, banks provide additional loans to existing borrowers without asking for extra collateral to help them cope with the liquidity crunch resulting from COVID curbs.

Ravaged by Covid, airlines here had been reeling under record jet fuel prices for the past several months which recently started cooling down. But now the rupee’s free-fall — with a large part of airlines’ expenses being dollar-denominated — is hurting them badly.

ALSO READ – IndiGo reinstates pilots and crew salaries by 8% from August 1

While, IndiGo is expected to restore salaries of its pilots, cabin crew, and ground handling staff to pre-COVID levels by September, SpiceJet's employees have been struggling with delayed payments.

ALSO READ - Air India to reinstate salary of all employees along with layover allowances to pre-covid levels

Despite the entry of airlines like Akasa Air and Jet Airways into the Indian aviation space, salaries and jobs of aviation personnel are not expected to rise for the next few years.'

While not yet acceding to airlines’ demand for excise cut of ATF, the finance ministry had in March 2022 extended ECLGS further.

ALSO READ – Akasa Air leads in pay hikes for pilots; raises salaries by 60%

Several Indian airlines are struggling to survive. SpiceJet has been defaulting on depositing employees’ TDS and paying them PF for several months now.

ALSO READ – Struggling to-Survive SpiceJet allegedly not depositing PF in employee accounts

While not yet acceding to airlines’ demand for excise cut of ATF, the finance ministry had in March 2022 extended ECLGS further.

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ALSO READ - Jet fuel for international flights exempted from excise duty

SpiceJet sighs a breath of relief

Low-cost airline SpiceJet has welcomed the changes made in the Emergency Credit Line Guarantee Scheme (ECLGS) for the civil aviation sector but has asked the government to extend support on jet fuel as well. 

ALSO READ – SpiceJet set to receive funds through ECGLS, an extension of up to 3 months for AGM’22

SpiceJet has welcomed the changes made in the Emergency Credit Line Guarantee Scheme (ECLGS) for the civil aviation sector

In a statement, Ajay Singh, chairman and managing director, of SpiceJet, said on Wednesday, October 5 that the speed and urgency with which the aviation and finance ministries have been taking up issues and problems being faced by airlines after the Covid pandemic and due to the record high oil prices is nothing but remarkable.

“I thank the Hon’ble Finance Minister Nirmala Sitharaman and Hon’ble Civil Aviation Minister Jyotiraditya M Scindia for this latest decision of enhancing the ECLGS limit for the troubled airline sector. This will provide a tremendous boost for airlines. I request the government once again for its support for including aviation turbine fuel under GST, which would be a game changer for the entire sector."Ajay Singh, Chairman and Managing Director, SpiceJet

ALSO READ – Spicejet looking for a “knight in shining armour” to help with financial distress

The airline expects an additional INR 1000 crore as part of the modified Emergency Credit Line Guarantee Scheme (ECLGS). The airline needs funds to sustain the heavy cost burden and pay pending dues. The airline has also been in discussions with bankers to raise USD 200 million.

ALSO READ - SpiceJet to increase salaries of senior pilots by 20%

The world's first self-flying, all-electric, four-passenger eVTOL air taxi has been unveiled by Wisk Aero, a leading Advanced Air Mobility (AAM) firm and pioneer in autonomous, electric flight. Generation 6 is Wisk's go-to-market aircraft and the first autonomous eVTOL to be a candidate for type approval by the FAA.

In 2010, we set out to find a way to skip traffic and get to our destination faster. That inspiration evolved into a mission to deliver safe, everyday flight for everyone. Over the past 12 years, we’ve pursued that mission through the development of five different generations of full-scale aircraft. Our 6th Generation aircraft is the culmination of years of hard work from our industry-leading team, learnings from our previous generations of aircraft, commitment from our investors, and the evolution and advancement of technology. said Gary Gysin, CEO of Wisk

Gary Gysin | The Business Journals

Wisk is fortunate to have the support of The Boeing Company and Kitty Hawk Corporation, two titans of the aviation industry. Additionally, Wisk gains a competitive edge from Boeing's 100+ years of experience in aircraft development, mass production, and certification through its strategic alliance with Boeing. Boeing's engineering resources for eVTOL and autonomy also aid in the advancement of Wisk.

Tech and specs

Representative | Interesting Engineering

Cruising speed120 knotsRange90 miles with reserves (~144 kilometres with reserves)Altitude2,500 – 4,000 ft above groundSeats4Dimensions< 50-foot wingspanPowerElectricOperationAutonomous with human oversightwisk.aero

The design and configuration of Wisk's 6th Generation aircraft include:

Boom configuration and proprietary 12-propeller design with improved propulsion systems. Range, enhanced aircraft control and performance, and effective energy management are emphasized by tilting propulsion units forward of the wing and fixed lift units aft of the wing.To maximize safety, stability, and the passenger experience while lowering both in-cabin noise and the aircraft's total noise footprint, the aircraft's wings have been elevated, the booms have been extended, and the size and number of its propeller blades have risen.One of the most adaptable air taxis on the market, it has a larger passenger compartment with 4 seats and enough space for luggage and carry-on goods.

Accessibility and Affordability

With a target price of $3 per passenger, per mile, Wisk's 6th Generation aircraft is created to provide a service for everyone.

Wisk has made accessibility a crucial component of its design approach in addition to the price. The accessibility elements included in Generation 6 range from an entrance and exit made for people with different levels of mobility to user interfaces that easily accommodate those who suffer from hearing, vision, and other disabilities. Wisk is one of the few market participants who has made serving such a diverse range of passengers a top priority.

Generation 6 improves the passenger experience by integrating an interior design modelled after an automobile. Passengers will be able to choose between taking in the scenery, being productive, or just relaxing because of the excellent visibility, the roomy layout, the comfy seats, and the productivity tools like wifi and charging.

ALSO READ - Wisk Aero continues to expand its global footprint – launches a new engineering hub in Montreal

SOURCE(s)

COVER: The Times