Government employees can now book flights on private airlines following Air India disinvestment

The government of India has issued a memorandum regarding the travel provisions of the government employees, which states that they can book their tickets through private airlines.

Earlier, the government staff were allowed to travel only by Air India. They were allowed to travel in other airlines only when Air India flights were not operating on the routes concerned.

“It is clarified that the air travel on government account, both domestic (including LTC) and international travel, can be made by private airlines,” according to the memorandum issued.

Earlier, the government staff were allowed to travel only by Air India.

The Department of Expenditure of the Ministry of Finance, which issued the memorandum, has also stated some government employee regulations connected to the leave travel concession facility.

Under the newly published guideline, a government official can travel to any place in India irrespective of the distance from one’s headquarters, once in four calendar years.

However, the government officials have to continue depending on three authorized agencies for their air ticket bookings as before. These agencies include Indian Railway Catering and Tourism Corporation (IRCTC), Balmer Lawrie and Ashok Travels.

Government employees can now book flights on private airlines following Air India disinvestment

Balmer Lawrie is a company coming under the purview of the petroleum ministry, focused on providing logistics support and a host of other businesses. Ashoka Travels and Tours Ltd is a subsidiary of India Tourism Development Corporation (ITDC).

The third entity, IRCTC, operates a travel portal and provides ticket booking and catering for Indian Railways. The memorandum was circulated among all ministries and departments.

Before Air India’s privatization, the central government ended the monopoly of Air India over flying millions of government employees. Post privatization of Air India to Tata Group’s Talace Private Limited, the central government did not continue the association with Air India in this regard.

Air India, too, had stopped offering credits to government agencies, as there was a massive default due to non-payment of dues.

Air India, too, had stopped offering credits to government agencies, as there was a massive default due to non-payment of dues. In November 2021, a response to an RTI query revealed that the government’s total due to Air India stood at INR 300 crores for both VVIP flights and other travels by the officials.

Considering the bifurcation, INR 34 crore dues were for VVIP travel, and the remaining INR 269 crore was for the tickets of the officials.

The Ministry of Home Affairs (MHA) will "scrupulously" carry out a thorough background check of newly appointed CEO and MD of Air India, Ilker Ayci, a Turkish national, official sources said on Sunday, February 20.

The Tata Group, which acquired Air India from the government, had recently announced Ayci's appointment as the CEO and MD of the loss-making airlines.

MHA to conduct a thorough background check on the newly appointed CEO of Air India

The Home Ministry "scrupulously" carries out a thorough background check of all foreign nationals when they are appointed in the key positions of any Indian company, the sources said. It will be the same process for the newly appointed CEO and MD too, they said.

However, the MHA has not yet received any communication on Ayci from either the Tata group or the Civil Aviation Ministry, the nodal ministry. Once communication is received, the whole process of security clearance will begin, the sources said.

Since Ayci is a Turkish national, the MHA is expected to take help from the external intelligence agency, R&AW, for his background check.

He had served Turkish Airlines as its chairman from 2015 to 2022 and was credited with turning the airline around.

Ayc? was an advisor of Turkish President Recep Tayyip Erdo?an when the latter was mayor of Istanbul, from 1994 to 1998. He had served Turkish Airlines as its chairman from 2015 to 2022 and was credited with turning the airline around.

Ayci has degrees in political science and public administration from Bilkent University. He has also done masters in international relations from Marmara University in Istanbul.

The Tata Group took complete control of Air India from the government, nearly 69 years after it was taken from the conglomerate. The government had last October 8 sold Air India to Talace Private – a subsidiary of the Tata Group's holding company – for INR 18,000 crore following a competitive bidding process.

Air India has won a nod of an appeals court in Quebec to challenge a Canadian court order that allowed foreign investors in Bengaluru-headquartered Devas Multimedia to seize its funds to recover compensation for a failed 2005 satellite deal with Antrix Corporation, a commercial arm of ISRO.

In a February 11 ruling, Judge Christine Baudouin agreed with Air India that the court should take a closer look at the claim brought by three Mauritius investors and the German major Deutsche Telekom to identify the airline as an alternative to the Government of India to facilitate recovery of compensations awarded by international tribunals over the failed satellite deal.

Air India receives approval to appeal a seizure ruling in Canada in the Devas Recovery Suit

"Without expressing any opinion on the merits or the chances of success in the appeal, I am satisfied that the present matter should be submitted to the court," Judge Baudouin wrote in brief order. She set a hearing in the case for May 13.

Earlier this month, a US federal court for the southern district of New York stayed proceedings to identify Air India as an alter ego of India and to find its assets in the US to facilitate recovery of compensation awarded by international tribunals.

ALSO READ - On Devas investors’ plea, Canadian court orders seizure of Air India and AAI dues to IATA

The shareholders - CC/Devas (Mauritius) Ltd, Devas Employees Mauritius Pvt Ltd and Telecom Devas Mauritius Ltd - have been targeting government assets abroad to recover a total of USD 1.3 billion compensation they won in three different arbitrations initiated over the nixed deal to deliver communications services throughout India.

US federal court for the southern district of New York stayed proceedings to identify Air India as an alter ego of India

They have got an attachment order from a French court for the Indian government's properties in upmarket Paris.

On January 8, 2022, they got a ruling from a Superior Court in the Quebec region of Canada to seize 50 per cent of Air India's funds being held by the International Air Transport Authority, a Montreal-based trade association for the world's airlines that facilitates payment of air navigation charges billed to airlines and countries.

ALSO READ - Air India attempts to settle USD 1.2 billion lawsuits in the US, referencing a new owner

The same judgment was also cited in the New York court by the Mauritius investors to seek seizures of the carrier's assets in the US to recover compensation over the failed 2005 deal.

Air India has sought dismissal of the demand by Devas' foreign investors saying it is no longer a state-owned firm after its takeover by the Tata group on January 27, 2022.

"According to Air India Ltd... the matter raises a new issue of law, namely: whether the assets of a state-owned company with a distinct legal identity and no involvement in the original claim between the Plaintiffs (Devas shareholders) and the Republic of India, can be validly seized ex parte before judgment in hands of another third party (IATA), to pay the debt of the State itself," Judge Baudouin wrote in the order.

Separately, Deutsche Telekom filed a petition in the US District of Columbia court in April 2021 against the Government of India, seeking confirmation of compensation of over USD 135 million (including interest) awarded by a Permanent Court of Arbitration in Geneva in 2020 over the annulment of a Devas-Antrix satellite deal in 2011.

This was separate from the three Mauritius investors' efforts in January 2021 to get confirmation of a USD 111 million compensation award made by the United Nations Commission on International Trade Law.

The Mauritius investors held a 37% stake in Devas and Deutsche Telekom held a 20% stake (in 2011) when the Indian government decided to annul the Devas-Antrix deal.

Another plea was moved before the US court for the southern district of New York to identify Air India as an alter ego of the Government of India and identify its assets to recover the compensations.

Air India has sought dismissal of the demand by Devas' foreign investors saying it is no longer a state-owned firm after its takeover by the Tata group on January 27, 2022.

Devas' investors have also separately filed pleas in the US court for the western district of Washington to identify assets of the Antrix Corp in the US to recover compensation of USD 1.2 billion awarded to Devas Multimedia as a whole by the International Chamber of Commerce over the cancellation of the failed satellite deal.

The government had in February 2011 annulled a deal to lease two communication satellites for 12 years for INR 167 crore to Devas Multimedia citing alleged irregularities in allocation of spectrum and the requirement of the S-band spectrum for security purposes of the country.

A UK judge ordered planemaker Airbus to delay any practical impact of a decision to revoke a USD 6 billion jet order from Qatar Airways for several weeks, as two of aviation's most powerful players wage an escalating court battle.

The move effectively prevents the planemaker from allocating valuable early delivery slots for the in-demand A321neo plane to other airlines, pending an early April hearing at which Qatar Airways plans to seek an injunction reinstating the contract.

The two sides have been clashing for months about surface flaws on A350s, some of which have been grounded by Qatar over safety concerns as its airline sues Airbus for USD 600 million. Airbus acknowledges quality problems but accuses the airline of mislabelling them as a safety issue to secure compensation.

The two sides have been clashing for months about surface flaws on A350s

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

The row widened in January when Airbus revoked a deal with Qatar for 50 A321neos, saying its refusal to take disputed A350s had triggered a clause linking the two plane deals. In a Friday, February 18 hearing, Qatar Airways condemned the decision.

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

"They took the risk and knew it would be absolutely incendiary. We have paid USD 330 million for this (A321neo) contract so far and they knew it was a hand grenade being thrown into our bunker," Qatar Airways lawyer Philip Shepherd said.

The technical hearing gave glimpses of what looks set to be a highly charged court battle in aviation, with a hearing on Qatar's request for an injunction set for the week of April 4, and a court date on the main A350 dispute set for April 26.

UK court orders Airbus to halt the cancellation of Qatar Airways' A321neo

Pending the first of those hearings, a UK judge rejected an Airbus request for more time to prepare and ordered the company not to do anything in the meantime that may scupper its ability to fulfil the A321neo deal if Qatar wins that part of the case.

Its lawyer Rosalind Phelps said the cancelled planes had been removed from its industrial plans and warned of damage to its supply chain if its hands were tied too severely.

The first plane is due for delivery in February 2023, with planes due to be delivered at a rate of six a year. Planemakers usually order parts up to a year ahead.

Airbus Chief Executive Guillaume Faury said on Thursday, February 17 it had been forced to cancel the A321neo order to "exercise our rights". On Friday, February 18 he reiterated on BFM TV that Airbus was ready for an amicable solution, adding "it takes time". Sources close to both sides say there are no signs so far of any truce.

Airbus says that they had been forced to cancel the A321neo order to "exercise our rights".

ALSO READ - Airbus cancels more A350 orders of Qatar Airways

Airbus is meanwhile preparing counter-claims in the A350 case. It has cancelled two out of 23 A350s still on order for Qatar but has agreed not to look for alternative buyers for now.

In January 2021, a Qatar Airways A350-900, registered as A7-ALL, was ferried to Ireland to be repainted in a special livery to celebrate the 2022 FIFA World Cup, which will be held in Qatar in October 2022. However, irregularities were found on the aircraft surface after it was stripped of its original paint.

In August 2021, the Qatar Civil Aviation Authority (QCAA) grounded 13 of Qatar Airways Airbus A350 aircraft over similar issues. Currently, the number of parked jets stands at 24, Planespotters.net data shows.

Qatar Airways released video footage showing defects in questions and claiming they weren't superficial

While Airbus largely refrains from commenting on the dispute in public, the manufacturer has previously accused its customer of misrepresenting the problem as a safety issue. Some versions in the media indicate that the airline might have sought the A350 groundings due to its interest to keep the planes idle given the COVID-19 impact on passenger demand. However, the latter claim is not confirmed.

In January 2022, Qatar Airways released video footage showing the defects in questions and claiming they were not superficial. “[...] one of the defects causes the aircraft’s lightning protection system to be exposed and damaged, another defect leaves the underlying composite structure exposed to moisture and ultraviolet light, and other defects include cracking in the composite and damage around a high percentage of rivets on the aircraft fuselage,” the airline wrote in a statement accompanying the video.

Singapore will from February 22 relax entry and testing requirements for vaccinated travel lane (VTL) passengers but those departing from India will still have to furnish a negative PCR or professionally administered ART test within two days of flight departure.

According to Singapore Airlines (SIA), fully vaccinated passengers travelling to Singapore from February 22 on VTL flights from Chennai, Delhi and Mumbai will have their travel history requirement reduced from 14 to 7 days.

To be eligible for VTL flights, travellers must not have any travel history (including transit) outside of VTL countries/regions, or outside of countries/regions listed as Category I (Macao, Mainland China, and Taiwan) by Singapore’s ministry of health in the past seven days, SIA said.

According to Singapore Airlines fully vaccinated passengers travelling to Singapore from February 22.

“If the traveller has been in Singapore within those last seven days, his/her stay in Singapore can be counted towards fulfilling this seven-day travel history requirement,” the statement said.

The second change will be that the long-term pass holders will no longer have to apply for a vaccinated travel pass (VTP) to travel to Singapore on a VTL flight. However, a VTP is still required for short-term visitors and work permit holders. The on-arrival testing requirements in Singapore will also be relaxed.

“From February 22, VTL travellers need not take an on-arrival Polymerase Chain Reaction (PCR) test at Changi Airport. Instead, they will be required to take a supervised self-swab Antigen Rapid Test (ART) at any test centre located across Singapore within 24 hours of arrival,” it said.

The on-arrival testing requirements in Singapore will also be relaxed.

A testing notice with a web link to book tests would be issued to travellers upon their entry into Singapore. If the above ART is negative, no further ART/PCR tests are required throughout one’s stay in Singapore.

The changes to Singapore’s VTL entry and testing requirements follow the government’s announcement last month exempting VTL travellers from all testing requirements if they had recently recovered from Covid-19 (within 7 to 90 days of their last infection before departure to Singapore) and can provide appropriate documentary proof of their recovery.

Singapore Airlines operates 52 flights to Singapore from eight cities in India, which includes daily, quarantine-free VTL services from Chennai, Delhi, and Mumbai.

Singapore to relax Covid-19 restrictions for vaccinated travellers.

It operates non-VTL services from Ahmedabad, Bengaluru, Hyderabad, Kolkata, and Kochi, and customers travelling on these flights will need to adhere to the entry rules. Scoot, SIA’s low-cost subsidiary, operates non-VTL services from Amritsar, Hyderabad, and Tiruchirappalli.

The reopening announcement is timely for the carrier as in its January operating statistics report, SIA observed a slight decline in passenger demand in January 2022 compared to a month ago.

It attributed this to the suspension of new ticket sales for VTL flights between December 22 to January 20 because of the emergence of Omicron. Since then, ticket sales have resumed and the VTL quota has been increased.

SIA's passenger network covered 13 Indian cities including Mumbai, Delhi, Hyderabad, Bengaluru and Kolkata at the end of January 2022.

Despite this, the SIA Group (including low-cost carrier Scoot) reported a 126% increase in capacity (measured in available seat-kilometres) compared with a year ago and a 2.8% month-on-month growth, reaching 46% of pre-COVID capacity.

However, passenger traffic (revenue passenger kilometres) fell 11.7% compared to the previous month, and its passenger load factor for January 2022 declined 6.5% points to 40%. There was however a 28.7% point year-on-year increase.

As of the end of January 2022, SIA's passenger network covered 86 destinations counting Singapore and about 13 Indian cities including Mumbai, Delhi, Hyderabad, Bengaluru and Kolkata.

Agartala will be connected with Dhaka and Chittagong cities of Bangladesh through flights, Tripura Chief Minister Biplab Kumar Deb said on Saturday, February 19.

Services along the Agartala-Dhaka and Agartala-Chittagong international routes are expected to begin within the next six months, and the Ministry of Civil Aviation (MoCA) will soon float tenders inviting expression of interest from private airlines wishing to operate along the routes, a senior official said.

"Finally, MBB Airport in Agartala is now set to have an international flight service with Dhaka & Chittagong. My heartfelt thanks to Hon'ble PM Shri @narendramodi Ji & Civil Aviation Minister Shri @JM_Scindia Ji for this initiative to fulfil the dream of the people of Tripura," Deb tweeted.

Biplab Kumar Deb, Chief Minister, Tripura

"The proposed international flight service with Bangladesh will surely boost Tripura tourism & take the state to a new height in terms of air connectivity. It will also benefit the people of Bangladesh in various ways and strengthen relations between two countries," he said in another Twitter post.

The MoCA has included the proposed international routes under the UDAN scheme, Sanjoy Mishra, Officer on Special Duty (OSD) to the chief minister said.

"The MoCA will now float tenders inviting expression of interest from private airlines who wish to run their services along the two international routes," he said.

The MoCA has included the proposed international routes under the UDAN scheme.

The international flight services from Maharaja Bir Bikram (MBB) Airport are expected to begin within the next six months as the MoCA has already identified the two routes, he said.

MBB Airport Director Rajiv Kapoor said that the chief minister has taken up with Union Civil Aviation Minister Jyotiraditya Scindia the commencement of international flights from the airport at the earliest.

"Right now, I cannot say when the international flight services will kick-start from the airport but we are ready for it. "The new terminal building, which was virtually inaugurated by Prime Minister Narendra Modi on January 4, has all facilities, from customs to immigration and separate zones for arrival and departure, for handling international passengers," he said. 

The new terminal building of Maharaja Bir Bikram Airport in Agartala was inaugrated in Jaunuary 4.

The Maharaja Bir Bikram (MBB) Airport in Agartala became ready to operate international flights after Prime Minister Narendra Modi inaugurated the new integrated terminal building on January 4.

According to the officials of the Airport Authority of India, the MBB airport, located 20 km north of Agartala, is the second busiest airport in the northeast after the Guwahati airport in terms of handling of aircraft and passengers. The Guwahati and Manipur airports were earlier declared international airports.

Built at a cost of INR 500 crore and with a built-up area of 30,000 sq mt, the new integrated terminal building at the MBB airport has been designed to handle 1,500 passengers, including 200 international passengers, during peak hours and it is equipped with all modern amenities.