Go First files for IPO at INR 3,600 crore valuation

Low-cost airline GoAir, now rebranded as Go First, filed an addendum to the draft red herring prospectus (DRHP) linked to its INR 3,600-crore initial public offering (IPO) on November 10.

The addendum lists two new objects of issue, apart from making an addition to the risk factors laid down in the DRHP.

“Part-payment of outstanding lease rental of the company’s aircraft leased from certain aircraft lessors,” said one of the two objects. “Part-payment of outstanding amount towards maintenance, repair and overhaul of aircraft,” said the other.

(Image Courtesy - Profit Must)

Regarding outstanding lease rental of GoAir aircraft, the addendum said that an amount of INR 443.97 crore will be used from the net proceeds of the IPO to pay the outstanding amount to aircraft lessors CDB Aviation Lease Finance DAC, Jackson Square Aviation Ireland Limited and ACG Acquisition Ireland III Ltd.

“The company intends to utilise an amount of up to INR 4,439.7 million from the net proceeds towards payment of outstanding lease rental of the company’s aircraft leased,” the addendum noted.

On payment of the outstanding maintenance amount, the addendum said that the company intends to pay INR 96.3 crore to MTU Maintenance Zhuhai Co Ltd from the IPO’s net proceeds.

“The company has entered into an agreement with MTU Maintenance Zhuhai Co Ltd (Vendor) for maintenance, repair and overhaul of the engines, modules and parts of the aircraft owned or operated by the company, which is valid until November 30, 2022,” it said.

“As of November 2, 2021, an aggregate of INR 1,346.7 million is outstanding and payable to the vendor, as communicated by the vendor to the company. The company intends to utilise an amount of up to INR 960.3 million from the net proceeds towards payment of the outstanding dues to the vendor,” the addendum said. The leftover outstanding payable to MTU Maintenance Zhuhai shall be met with by the company from its internal accruals, debt or otherwise, it added.

GoAir has made an addition to the risk related to an outstanding payment under aircraft lease agreements.

“Our objects of the issue include, among other things, (a) replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircraft, with cash deposit to the extent of INR 2,792.6 million to two aircraft lessors; and (b) part payment of outstanding lease rental of our company’s aircraft leased from certain aircraft lessors aggregating to INR 4,439.7 million,” it said.

India is looking to increase the number of international flights operating to and from the country in the upcoming weeks, reported MoneyControl.

With over 100 crore doses administered and 85% of the country's eligible population receiving at least one dose, Indian officials are in talks with domestic and international airlines as well as other countries to increase flight capacity during travel bubbles, according to senior officials.

With countries in Europe, the Middle East, North America, and elsewhere, India has established several air bubble travel agreements. Air bubbles allow international flights between two countries to operate under certain restrictions and stipulations, even if international flights are restricted in one of the two countries.

“There are constant discussions between the high commissions of every country, and, wherever required, we are looking to increase flights under the air bubble agreements,” an official said.

The countries that India is looking to increase international flights to are Dubai, Singapore, France, the UK, the US, Bangladesh, Sri Lanka, Qatar, Saudi Arabia, Germany and Australia, among others.

But while India is looking to increase its international flights between countries that it has an air bubble with, the country is not likely to remove the international flight restrictions in the coming weeks.

“Reopening international commercial flights are still a while away. We can surely consider opening once demand nears pre-COVID levels," officials said.

Before removing all restrictions on international flights, the government will be collecting data of international passengers and corresponding COVID-19 after November 15.

"We have to ensure that our tourist hotspots are safe and we will collect data of foreign tourists arriving to ensure that no case of COVID-19 infection goes unattended," another official said.

Last month, the government announced granting free tourist visas to those travelling by chartered flights by October 15 and those by regular planes from November 15. The e-visa for India is available for citizens of 156 countries.

The Ministry of Finance announced in June 2021 that the first 5 lakh passengers would receive free tourist visas until March 31, 2022.

Due to the pandemic, scheduled international passenger flights to and from India have been suspended since March of last year. The government is most likely to extend the suspension of scheduled international flights, which is currently in effect until November 30.

More than 25 countries, including the United States, the United Kingdom, Germany, and Japan, have air bubble agreements with India. Scheduled international flights may be allowed on select routes on a case-by-case basis, according to the regulator.

(With Inputs from MoneyControl)

An Airbus H225 chopper has performed, in what can be termed as the first-ever helicopter flight, performed on 100% sustainable aviation fuel (SAF).

AIRBUS

The notable event heralds the beginning of a flight campaign, that would be a part of a series of tests assessing the impacts of unblended SAF in helicopter systems.

While all Airbus helicopters are certified to fly with up to a 50% blend of SAF mixed with kerosene, it is our Company’s ambition to have its helicopters certified to fly with 100% SAF within the decade. Today’s flight is an important first step towards this goalStefan Thome, Executive Vice President, Engineering and Chief Technical Officer, Airbus Helicopters.

According to reports, The H225 flight operated on SAF which was a derivative of used cooking oil, provided by TotalEnergies. And quite apparently, this unblended SAF produced a net 90% reduction in carbon emissions as compared to regular jet fuel.

Tech and specifications

Seating19 passengersOr 28 in troop seatingRange600 NMExternal Load4750 KgSource: Airbus

SAF is an important pillar of Airbus Helicopters’ decarbonisation strategy because it provides immediate CO2 reduction with no negative impact on the performance of the helicopter. I thank our partners Safran Helicopter Engines and TotalEnergies for their important collaboration in making today’s flight a reality. Further cooperation among all industry stakeholders is essential to overcome the challenges associated with implementing SAF widely and to make real progress in reducing the aviation industry’s CO2 emissionsStefan Thome

Alain Flourens (left) | Stefan Thome (right) | Airbus Helicopters New Executive members | Airbus

Furthermore, the company has also launched a SAF User Group dedicated to the rotary-wing community as a means of further pushing the deployment of biofuels in helicopter operations. Airbus Helicopters has already begun training and testing flights using SAF at its sites in France and Germany.

The H225 made its flight on 9 November at the company’s headquarters in Marignane. The SAF used was deployed to power one of the  Safran Makila 2 engines of the chopper.

Did you know? The H225 is the choice of commercial operators and governmental agencies for its long-range and all-weather search and rescue (SAR) capabilities. As a reference in its field, the H225’s autopilot provides precision, stability, flight envelope protection, and pilot assistance – including dedicated search and rescue (SAR) upper modes.

COVER: Airbus

Major U.S. airlines and Amazon.com's aviation unit are joining an effort to speed the development and use of sustainable aviation fuels (SAF) to decrease emissions in air transport.

The Sustainable Aviation Buyers Alliance (SABA) said Amazon Air, Alaska Airlines, JetBlue, and United Airlines are joining the effort, which includes major corporate airline customers, to help drive greater SAF production, price cuts and technological advancements.

(Image Courtesy - Amazon)

The Environmental Defense Fund and the Rocky Mountain Institute (RMI) launched the Sustainable Aviation Buyers Alliance (SABA) in April with companies including Boeing, Bank of America, JPMorgan Chase, Microsoft, and Netflix to support increased market demand for SAFs.

At the climate talks in Glasgow, RMI managing director Bryan Fisher said aviation emissions would be equivalent to the sixth largest country's total emissions. Fisher said SAF is "almost largely 100%" of the solution through 2030 "and still a very large part" through 2050 but SAF is just 0.1% of jet fuel consumed today.

The U.S. Transportation Secretary Pete Buttigieg will represent the United States as a coalition of countries led by Britain are expected to announce the "International Aviation Climate Ambition Declaration," Reuters reported, citing sources.

(Image Courtesy - Aviation Business News)

Buttigieg on Wednesday, November 10 praised SABA and cited "the importance of partnerships between the public and private sector" in cutting aviation emissions.

On Tuesday, November 9 the United States said it was setting a goal of achieving net-zero greenhouse gas emissions from the U.S. aviation sector by 2050.

The White House said in September it was targeting 20% lower aviation emissions by 2030. Major U.S. airlines backed a voluntary industry target of 3 billion gallons of SAF use in 2030.

Ben Minicucci, CEO of Alaska Airlines, said the new "Aviators Group" within SABA is "focused on tangible steps, at scale, to accelerate progress."

(Image Courtesy - Robb Report)

SABA also said Facebook parent Meta is joining.

"Making sustainable travel a reality will require extensive investment in low-carbon technologies such as sustainable aviation fuel by our entire industry,” said United Airlines CEO Scott Kirby.

Nearly 2.5% of global emissions are a result of air travel.

(With Inputs from Reuters)

Travel company MakeMyTrip has partnered with IndiGo airline to launch exclusive charter flights between Mumbai and Phuket in Thailand, according to a statement on Wednesday, November 10.

"As the pandemic eases and countries begin welcoming back Indian travellers, MakeMyTrip together with IndiGo is making travelling to the island easy while Phuket continues to remain closed for direct flyers from India," the statement mentioned.

As part of the package, MakeMyTrip will offer end-to-end travel services, including airport transfers, certificate of entry (CoE) assistance, early check-in and check-out at one of the premium properties, travel insurance, and return RT-PCR test assistance, it noted.

"With packages starting at only INR 39,999, travellers will be able to make a booking at a special price of INR 1,000 only," it said.

Detailed city tour, visit to Coral and Racha Islands by speedboat and day trip to Dolphins Bay will be included in the package, it mentioned.

Earlier, the online travel company had signed a partnership with GO FIRST to launch ‘exclusive Air Charter Holiday Services’ to Phuket.

The two companies have come together intending to make travelling to the holiday island easy while Phuket continues to remain closed for direct flyers from India, it said. 

IndiGo is a low-cost carrier based in Gurgaon, India that commenced operations in August 2006. The carrier, which is owned by Rahul Bhatia’s InterGlobe Enterprises, operates an extensive domestic network and international services to South Asia, Southeast Asia, Europe and the Gulf.

AirAsia India said on Wednesday, November 10 it is offering special "premium flex fares" that will give passengers several services such as unlimited rescheduling of flight bookings, discounted cancellation fees and free selection of pre-booked meals.

With this special fare, passengers can now make unlimited changes up to two hours before the scheduled flight departure without any fees, its statement said.

"Guests opting for premium flex fares get a host of complimentary services, including unlimited rescheduling of flight bookings, discounted cancellation fees of only INR 500 for cancellations beyond 72 hours against the standard cancellation fees of INR 3,000 and free standard seats from rows 6-11 and 15-32," it mentioned.

The passengers will also get 50% off on premium seats in row numbers 1-5, 12 and 14, and a free selection from the airline’s menu of pre-booked meals, it added.

Recently, AirAsia India announced that passengers could carry additional 3 kgs or 5 kgs as cabin baggage if he or she pays a fixed charge of INR 600 and INR 1,000, respectively.

To date, passengers were not allowed to carry additional cabin baggage on AirAsia India flights.

AirAsia India, like many other domestic carriers, allows its passengers to carry a cabin bag of up to 7 kg weight for free.

Under the new service ‘Carry On Xtra’, a passenger would be able to carry a cabin bag of 10 kg weight if he or she pays a fee of INR 600.

AirAsia India is the AirAsia Group’s brand for its subcontinent operations. The low-cost carrier commenced domestic services in June 2014 and plans to grow its route network to service all Indian metropolitan centres and a selection of tier-II cities.

AirAsia India is based at Bangalore Kempegowda International Airport, with secondary hubs in Delhi and Kolkata, and operates Airbus A320 equipment.