Government publishes structure for drone traffic management in lower airspace

The Civil Aviation Ministry has notified a traffic management framework for drones under which public and private third-party service providers will manage their movement in the airspace under 1,000 feet.

Current air traffic management (ATM) systems have not been designed to handle the traffic from unmanned aircraft, the framework issued on October 24 stated.

(Image Courtesy - Shaping Future)

"Integration of unmanned aircraft in the Indian airspace using conventional means may require unmanned aircraft to be equipped with bulky and expensive hardware, which is neither feasible nor advisable," it noted.

This requires the creation of a separate, modern, primarily software-based, automated UAS (unmanned aircraft system) Traffic Management (UTM) system, it said, adding that such systems may subsequently be integrated into traditional ATM systems.

The integration of UTM and ATM will be important to continuously separate manned and unmanned aircraft from each other in the airspace.

(Image Courtesy - Loup Ventures)

The framework allows third-party service providers to give services such as registration, flight planning, dynamic deconfliction and access to supplementary data like weather, terrain and position of manned aircraft. Also, a set of supplementary service providers will be permitted under the framework to provide services such as insurance and data analytics to support the UTM ecosystem.

DigitalSky platform shall continue to be the interface for government stakeholders to provide approvals and permissions to drone operators wherever required, according to the framework.

All drones (except Nano drones operating in the green zone) shall be required to mandatorily share their real-time location through the network to the Centre either directly or through third-party service providers, it mentioned.

(Image Courtesy - UAS Vision)

It said the third-party service providers will first be deployed in small geographical areas that could be increased gradually. Moreover, these service providers will be permitted to charge drone operators a service fee and a small portion of it might have to be shared with the Airports Authority of India (AAI), which manages the ATM.

The key stakeholders for this include the central government, the Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), Airspace Management Agencies, Air Traffic Control (ATC) Authority, Air Defence Authority, UAS Traffic Management Service Providers (UTMSP), Supplementary Service Providers (SSP), remote pilot, law enforcement and security agencies, and the general public.

"India is ready to witness a scenario where drones will be as prominent as birds in the sky with the adoption of drones picking up at a fast pace. Traditional traffic management services provided by ATCs (air traffic controllers) for manned aircraft cannot be scaled for managing drone traffic which is expected to become at least 100 times higher since the traditional ATM is manual and requires human intervention.This policy framework shall allow third-party service providers to deploy highly automated, algorithm-driven software services for managing drone traffic across the country.The vision to conduct an outcome-based, time-bound UTM experiment as the key next step of the policy framework shall allow India to engage in a public-private partnership for developing safety and separation standards for drones and allow drone operations to scale up quickly in the country."Smit Shah, Director of Industry Body, DroneFederation of India

For the unversed, the Drone Federation of India (DFI) is a non-government, not-for-profit, industry-led body that promotes the drone industry by bringing policy change, creating business opportunities, developing a robust skilling infrastructure, developing standards, and promoting R&D efforts.

Jyotiraditya Scindia, Union Minister for Civil Aviation (Image Courtesy - Twitter - Smit Shah)

The Union government had on September 15 approved a production-linked incentive (PLI) scheme for drones and drone components with an allocation of INR 120 crore spread over three financial years.

The ministry had on August 25 notified the Drone Rules, 2021 that eased the regulation of drone operations in India by reducing the number of forms that need to be filled to operate them from 25 to five and decreasing the types of fees charged from the operator from 72 to four. The framework has been issued under the Drone Rules, 2021, only.

Cover Image - New Atlas

SWiFT UAV is a Technology Demonstrator and is a scaled-down version of Ghatak UCAV (Unmanned Combat Air Vehicle). The main intent of SWiFT UAV is to demonstrate and prove the stealth technology and high-speed landing technology in autonomous modeDRDO

Exactly a year back in 2020, DRDO had announced that it had completed the designing of the landing gear for the project and that manufacturing of the airway components was underway.

If reports are to be believed, the retracting landing gear systems have been now handed over by the Combat Vehicles Research and Development Establishment, a DRDO lab based in Chennai.

So, what is SWiFT?

Acronym for Stealth Wing Flying Testbed is a technology demonstrator, developed under what is touted to be India's highly secretive unmanned combat aerial vehicle (UCAV) programme.

Owing to its classified status, much of its tech and specifications remain elusive. The project comes under the direct surveillance of the Prime Minister's Office and the national security advisor.

What do we know so far?

Formerly known as AURA ( autonomous unmanned research aircraft), the project was conceptualized in 2009 and part of the development of ambitious India’s fifth-generation stealth fighter Advanced Medium Combat Aircraft(AMCA).

The ADA (aeronautical development agency), based in Bangalore, has collaborated with the Defence Electronics Application Laboratory and other related entities of the Defence Research and Development Organisation, to work on the project which is still in the making.

Apparently, the taxi trials appear to have been conducted at the Aeronautical Test Range near Challakere in Karnataka's Chitradurga district two months back, although there are no confirmed dates on this.

Intended to develop technologies for the final Ghatak UAV, the first trials of the prototype(SWiFT), were initiated by the DRDO in June 2021. Ghatak is an autonomous stealthy unmanned combat air vehicle (UCAV), being developed primarily as a stealth bomber by the Aeronautical Development Establishment (ADE) of Defence Research and Development Organisation (DRDO) for the Indian Air Force.

GHATAK | TFIPOST

The 1-ton weight class retractable landing gear for SWiFT developed by  Combat Vehicles Research and Development Establishment (CVRDE), is already certified by the Centre for Military Airworthiness and Certification (CEMILAC) and Directorate General of Aeronautical Quality Assurance (DGAQA).

Estimated to be around 13 feet long, with a wingspan of somewhat over 16 feet, SWiFT is thought to weigh approximately 2,300 pounds.

https://www.youtube.com/watch?v=9q9VrwD0bSI

Courtesy: Reach Defense | Youtube

COVER: DefenseXP

The government has geared up to complete the privatisation process for 13 airports by the end of this financial year.

In September it was reported that the board of the Airport Authority of India has approved to privatise 13 airports. This is the first major asset monetisation exercise by the government as part of the National Monetisation Pipeline. The government is aiming for the private investment of INR 3,660 crore in airports by FY24.

“We have sent a list of 13 airports to the aviation ministry that is to be bid out on PPP (public-private partnership). The plan is to complete the bidding of these airports by the end of this fiscal,” state-owned Airports Authority of India (AAI) Chairman Sanjeev Kumar told The Economic Times in an interview.

A Public-Private Partnership (PPP) is a partnership between the public sector and the private sector to deliver a project or service traditionally provided by the public sector. The advantage of a PPP is that the management skills and financial acumen of private businesses could create better value for money for taxpayers when proper cooperative arrangements between the public and private sectors are used.

He added that the model to be followed for bidding would be the per-passenger revenue model. “This model has been used earlier and is successful and the Jewar airport (in Greater Noida) was also bid out on the same model.”

Finance Minister Nirmala Sitharaman had, in her Budget speech, said that the government will privatise airports operated by AAI from Tier II and III cities in 2021-22.

Kumar believes that there will be takers of the project despite COVID-19 “as the impact of the disease is short-term and the airports are on offer for 50 years”.

It was reported in August that the AAI will begin the third stage of airport privatisation from October, if the third wave of COVID-19 turns out to be milder than the second wave and air passenger traffic continues to rise, citing the Ministry of Civil Aviation (MoCA) sources.

The government plans to bundle the Jharsuguda airport with Bhubaneswar in Odisha, Kushinagar and Gaya airports with Varanasi in Uttar Pradesh, Kangra airport with Amritsar in Punjab, Jalgaon airport with Raipur in Chhattisgarh, Jabalpur airport with Indore in Madhya Pradesh, and Salem airport with Trichy in Tamil Nadu, before offering it to prospective bidders.

As part of the National Monetisation Plan (NMP), the government plans to award 25 airports in the next four years, including the above 13. This follows the six awarded to the Adani Group in 2019 at the beginning of the second phase of privatisation after the airports of Delhi, Mumbai, Bengaluru and Hyderabad were handed over to private operators in 2005-06.

The NMP is a new scheme to establish structured contractual partnerships between the government and private players and thereby generate sustainable infrastructural funding by monetising core brownfield infrastructural assets, that is, assets where operational infrastructure has already been built.

The scheme will enable infrastructure creation through mutually beneficial collaboration between the public and private sectors, each of whom excels in their respective areas of competence and deliver on the government’s socio-economic growth promises. The NMP does not include monetisation proposals through disinvestment or programs linked to non-core assets.

(Image Courtesy - CAPA)

The NMP has laid down the conceptual approaches and potential models for asset monetisation, including the Public Private Partnership (PPP) model.

The government intends to liberalise the industry by privatising profitable airports. The AAI's mandate will be expanded to include developing new ones in areas where the private sector may be hesitant to venture due to profit-sharing from privatised airports.

Covid harmed AAI's earnings. In FY21, it reported a record loss of INR 1,962 crore and had to borrow INR 1,500 crore from the State Bank of India to meet working capital needs, including salaries. AAI will not need to borrow for working capital needs this year, as the situation has returned to normal and passenger traffic has increased.

The government signed the share purchase agreement with Tata Sons, for divestment of the government's stake and management control in the national carrier, marking the first privatisation in nearly two decades.

“Share purchase agreement signed today by the government with the Tata Sons for strategic disinvestment of Air India,” department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey said in a Twitter post on Monday, October 25.

Air India Director- Finance, Vinod Hejmadi, Civil Aviation Ministry Joint Secretary Satyendra Mishra and Supraprakash Mukhopadhyay from the Tata Group signed the share purchase agreement (SPA).

https://twitter.com/secydipam/status/1452592954795720707?s=24

Before the actual handover of the airline takes place by the end of December, Tata Sons will need to obtain various regulatory clearances, including from the Competition Commission of India (CCI).

The SPA comes after Tata Sons received a letter of intent earlier this month after being named the winning bidder for the airline's strategic disinvestment.

With the signing, Air India's INR 18,000 crore sale transaction moves one step closer to being handed over to the Tata Group, the airline's original owners.

The SPA will be followed by regulatory approvals before the formal handover process begins.

Tata Sons will get full control of Air India, its low-cost carrier Air India Express and a 50% stake in ground handling company Air India SATS Airport Services Pvt. Ltd (AISATS). The group will also take over 141 Air India aircraft, of which 42 are leased and the remaining are owned.

Therefore, it would also take over the capitalised lease liability on account of operating leases of INR 9,185 crore. The group will pay up INR 2,700 crore in cash to the government while taking on INR 15,300 crore of the carrier’s debt.

The remaining debt of INR 46,262 crore will be taken over by Air India Asset Holding Ltd (AIAHL), a special purpose vehicle set up by the government to hold half of the airline’s loans, four of its units and non-core assets.

The government is aiming for a quick handover of the airline since it was paying more than INR 20 crore per day to run the airline.

The deal also includes the sale of Air India Express and ground handling arm AISATS. Tatas beat the INR 15,100 crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of INR 12,906 crore set by the government for the sale of its 100% stake in the loss-making carrier.

While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tatas' stable -- it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.

In the fiscal year 2020-21, Tata Sia Airlines Limited, which operates the airline Vistara, reported a net loss of INR 1,612 crore. In comparison to the previous fiscal year, this represents an 11% decrease. The airline reported revenue of INR 2,731 crore, down 44% from the previous financial year.

The airline's net worth increased to INR 1,566 crore from INR 842 crore the previous year, according to data accessed by business intelligence platform Tofler.

Vistara’s other income rose to INR 487.37 crore from INR 112.61 crore previously. Total expenses declined to INR 4,342.43 crore from INR 6,664.45 crore. The company had INR 935.23 crore of cash and cash equivalent as of March 31.

The full-service carrier’s expenses for the fiscal were reported as INR 4,342 crore.

"The business has been severely impacted during the year on account of Covid-19. The company witnessed softer revenues due to the lockdown imposed during the first six months of the financial year 2020-2021, and domestic and international flights for significant routes of the company were suspended.During the second half of FY2020-21, with the unlocking of restrictions, the company resumed its domestic operations, which gradually improved across networks, and there were signs of demand recovery, especially for leisure travel.Whilst there has been a second wave of the Covid-19 pandemic in the last month of the financial year 2020-2021, there has also been increased vaccination drive by the Government and the company continues to closely monitor the situation."Vistara

The company, like all other airlines, has faced severe headwinds due to the Covid-19 pandemic.

To tide over the pandemic, Vistara raised funds from its parent company and external credit borrowings (ECB) during the past one and a half years.

In August, Vistara received fresh equity of INR 750 crore from its parent companies, Tata Sons and Singapore International Airlines.

(Picture credit - Pipisombat)

In May, Tata SIA Airlines Limited had raised $110 million through ECB.

An additional INR 465 crore was invested by Tata Sons and Singapore Airlines. The airline has received around INR 4,500 crore from the two joint venture promoters so far.

All of Vistara's 30 domestic stations, including seasonal stations, have been gradually brought online, with Dehradun becoming the 31st in November 2020.

Under the Travel Bubble Arrangements, limited international services resumed in August 2020. Long-haul services on the Boeing 787-9 aircraft began in August 2020 on the Delhi-London route, followed by London-Mumbai in January 2021, and Delhi-Frankfurt in February 2021.

Before the lockdown was imposed last year, the airline operated about 200 daily domestic departures and 10 daily international departures.

Tata Sons recently bought Air India for over INR 18,000 crore.

Operating a full-service airline in India is unquestionably a test of endurance. Vistara's advantage has always been international flights and a slice of domestic premium passengers, despite low fares, intense competition, and razor-thin margins. Losses are unsurprising given the pandemic's impact on both of these segments.

Vistara, on the other hand, is preparing to bounce back in the future. After starting services to London, Frankfurt, and Tokyo during the pandemic, the airline has already received approval to fly to the United States. For the time being, the carrier is gradually expanding its operations, with a large expansion planned once borders reopen and traffic picks up.

Vistara is an Indian full-service carrier based at Delhi Indira Gandhi International Airport. The airline provides domestic services to major metropolitan centres and tourism destinations. The carrier is a JV (Joint-Venture) between Tata Sons Private Limited and Singapore Airlines Limited.

Vistara’s updated paid-up share capital was Rs 8,120 crore as of May 7, 2021, of which 51% was held by Tata Sons and 49% by Singapore Airlines, the report stated.

SpiceJet will launch 28 new domestic flights across the country from October 31 onwards, the airline said Monday, October 25.

It will launch multiple new non-stop flights connecting the tourist hotspots of Jaipur, Jaisalmer, Jodhpur and Udaipur in Rajasthan with key metros and cities as part of its new winter schedule, SpiceJet said in a statement.

SpiceJet will also connect Bagdogra with Ahmedabad, Kolkata with Srinagar and add two new flights on the Bengaluru-Pune sector, it said.

The airline has recently announced the addition of Kushinagar to its domestic network starting 26th November 2021. The airline will add Kushinagar in Uttar Pradesh as its newest UDAN destination and connect it with the National Capital. The airline will be connecting Kushinagar with two more key metros – Mumbai and Kolkata – starting 18th December 2021.

“With the onset of festive season and leisure travel demand picking up significantly, we have ensured seamless connectivity for our passengers from across the country to Rajasthan, one of the most preferred tourist destinations in the country during winters. As demand improves, SpiceJet is committed to introducing more new flights that will help in reviving travel and tourism.”Shilpa Bhatia, Chief Commercial Officer, SpiceJet

The airline will be deploying its Boeing 737 and Q400 aircraft on these routes.

The government had on October 12 allowed airlines to operate domestic flights without any capacity restriction from October 18.

(Image Courtesy - The Print)

When the government resumed the scheduled domestic flights on May 25 last year after a two-month break, the ministry allowed the carriers to operate not more than 33% of their pre-Covid services.

This cap was gradually increased to up to 85% till September this year.