IATA Believes India has Right Vision & Well-Timed Strategy for Aviation Sector

India has the right vision and well-timed strategy for the aviation sector, especially with good economic growth and a high population, but it should also be ensured that the positive impact is not curtailed by too many taxes, according to IATA.

Marie Owens Thomsen, the Chief Economist at the International Air Transport Association (IATA), also said that she is not in favour of any kind of duopoly in the airline industry and emphasised the importance of healthy competition as well as participants being resilient. She shared her views on competition in response to a question from PTI on the possibility of a duopoly in the fast-growing Indian airline market. While domestic traffic is on the rise, the airline’s segment is facing headwinds with Go First suspending operations and SpiceJet grappling with various issues, while IndiGo and Air India group are expanding their presence. Akasa Air, which is on a steady path, is less than a year old.

"I am an economist and obviously, I am not going to be in favour of any kind of duopoly. We want to see, in general economics, intense competition because we believe that will get more innovation, services and lower prices. On the other hand, if the field is too crowded and there is too much capacity, then you might end up with too many players that are not financially viable. Healthy competition as well as robust and resilient participants, that is what we want," she said.

In an interview on the sidelines of the IATA World Air Transport Summit in Istanbul earlier this week, Thomsen said the two fundamental drivers for air transportation are GDP and population growth, and on both fronts, India is doing well. While acknowledging that the country's strategy of having more airports and aeroplanes is well-timed, she also has a word of caution. "I love the aviation strategy, more airports, more aeroplanes and all of that seems well-timed and I would also caution India to try to make sure that they don't curtail the results that could come from that by imposing too many taxes and burdensome regulations. "... So far, we know that India has not quite been able to access that Tiger-style growth that we would have hoped for," she pointed out.

Thomsen is the Senior Vice President of Sustainability & Chief Economist at IATA, a grouping of more than 300 airlines that account for over 80% of global air traffic. Various Indian carriers, including Air India, IndiGo and SpiceJet, are members of IATA. About the Indian market, she also said the right vision is there but it is execution that they need to pay attention to. "You can have the right policies and then curtail the positive impact of those policies if not careful".

Earlier this week, Civil Aviation Minister Jyotiraditya Scindia said the country will have more than 200 airports, heliports and water aerodromes in the next five years and domestic carriers will order up to 1,400 additional planes during the same period. In February, aircraft maker Boeing said that India will require around 2,210 new planes in the next two decades and projected a nearly 7 per cent annual domestic air traffic growth through 2041.

To a query on concerns about low airfares and high taxes, Thomsen said it is actually not just an Indian problem. "The world seems inexplicably tempted to always put more taxes on airlines in particular. It is a mystery to me because it is not part of the value chain that is the most profitable. On the contrary, structurally speaking, the airlines are the ones that make the least money in our value chain," she said.

On June 5, IATA projected the global airline industry to record revenues of USD 803 billion and a net profit of USD 9.8 billion this year, and airlines will make an average profit of USD 2.25 per passenger.

Around the time Navi Mumbai International Airport gets operational in December 2024, Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) will also see significant changes. The future of Terminal 1B (T1B) would have been decided by then, with the Adani Group weighing several options. The other changes include an upgrade in facilities at CSMIA. The security hold area is being increased, Adani Airports CEO Arun Bansal was quoted saying in a report by The Times of India.

CSMIA cross runways’ average hourly flight movement capacity is proposed to be increased in the next two years from the current 46 to over 50 by creating a parallel taxiway and increased automation for speedier movement of aircraft between the airstrip and terminal.

“Airlines are now getting planes with higher seating capacity so passenger footfall has increased. Terminal capacity at the security hold area will be increased within the next few months to handle that,” said a senior official. But clearly, Adani’s biggest opportunity to put its stamp on CSMIA — like the peacock-themed T2 built by GVK Group — is at T1.

Senior group officials say several options for this terminal are being examined and a decision will be taken in the next few months. Three years back (before Adani had acquired Mumbai International Airport Ltd or MIAL), the GVK-controlled airport management had proposed reconstructing T1B for INR 1,200 crore in a three-phase plan submitted to the Airports Economic Regulatory Authority (AERA) back then.

“The justification submitted by MIAL for the construction of Terminal 1B was as follows: ‘The building was built long back, has become structurally weak… a structural audit report also evidences this. The level of service offered is very low as compared to T2, to bring it at par with T2. The plan is to consolidate the entire security hold area (SHA) area to smoothen operations…’,” AERA had said in its consultation paper for determining aeronautical services tariffs of CSMIA for April 2019-March 2024 (third control period). Incidentally, Delhi Airport had demolished its oldest terminal — T1B — some years ago.

CSMIA’s Expansion plans

In 2020 when this plan was submitted, CSMIA’s T1A was not in operation. “So in effect, Terminal 1C and 1A will be in operation when reconstruction of T1B is being done.… Refurbishing of T1A will also be required as the baggage handling system, inline screening systems need to be upgraded…. Upgraded Terminal I will be a two-level terminal with segregation between departures and arrivals. There will also be a flyover to the departure level,” the AERA paper had said.

CSMIA has two terminals T1 and T2. T1 comprises T1A, B and C buildings which were built over the last 50 years with 1B being constructed in 1965; 1A in 1992 and 1C in 2010. T1B’s structural audit was conducted in August 2017 and its report said, “…In the period of (T1B’s) existence, the structures have developed various defects.” The GVK-operated MIAL had planned to reconstruct T1B in three phases. Now Adani Group’s plans for this terminal will be known in the next few months.

Navi Mumbai to be operational by 2024

The under-construction Navi Mumbai International Airport will become operational by 2024. As a multi-modal airport, it will have the capacity to accommodate 90 million passengers by 2032. The airport will be seamlessly connected to various transportation systems, including the Mumbai Trans Harbour Link, the coastal road, and the metro, Maharashtra deputy chief minister Devendra Fadnavis said, when he and CM Eknath Shinde were on an inspection visit to the site. The project, belonging to the Adani Group, was initiated in 2017.

Located at the center of the Mumbai Metropolitan Region (MMR) at Ulwe in Navi Mumbai, the state-of-the-art airport is being constructed in four phases. The first two phases will be completed by December next year. Induced with the latest technology, the makers have planned to establish the airport as highly energy efficient and environmentally friendly. All the vehicles to be used at the station will be electric, green electricity will be central to the airport’s operations with the use of solar power, generated on-site.

The design of the airport terminal draws inspiration from the country's national flower, the Lotus, and is a visually stunning aesthetic as seen from an aerial view. The project is a joint venture of the Adani Group and the City and Industrial Development Corporation (CIDCO). Spread over 1,160 acres, the entire cost of the project is INR 16,700 crore. The airport will also have the capacity to handle 2.5 million tonnes of cargo by 2032. The need for this project was driven by the expected growth in the sector of air travel, with growing pressure on the existing Chhatrapati Shivaji Maharaj International Airport due to the anticipated future air traffic demand and capacity constraints.

(With Inputs from The Times of India)

The aerospace sector is critical to any country's economic and technical progress. Tata Advanced Systems Limited (TASL) has become a major participant in India's aircraft production, military engineering, and defense technology. TASL has evolved as a prominent participant in the Indian aerospace and defense environment, strongly emphasizing cutting-edge technology, innovation, and cooperation. 

Overview

TASL, founded in 2007, has established itself as a pioneer in this competitive field as a wholly owned subsidiary of Tata Sons, the holding company for the illustrious Tata Group. TASL is a center of excellence for aerospace production, military engineering, and defense technologies. It comprises an extensive spectrum of capabilities, from sophisticated aircraft development and manufacturing to defense system design and integration. TASL's dedication to excellence has earned them a reputation as a provider of high-quality solutions to both domestic and international clients.

Core Competencies and Expertise at TASL

Aerospace and Defense

The defense and aerospace industries are TASL's core emphasis. The firm provides a broad spectrum of services, including aircraft structural design, development, and manufacture; systems integration; avionics; and mission systems. To address the intricate requirements of the defense sector, TASL has developed cutting-edge facilities and competencies. Its knowledge ranges from aircraft manufacturing to maintenance, repair, and overhaul (MRO) services.

Automotive

TASL has diversified its portfolio beyond defense and aerospace to include the automotive industry. The firm provides automotive solutions such as vehicle electrification, powertrain systems, and advanced vehicle safety systems through the application of its engineering and production expertise. TASL collaborates with global OEMs (Original Equipment Manufacturers) to develop cutting-edge technologies that improve vehicle performance, efficiency, and safety.

Industrial and Energy

TASL's expertise encompasses everything from defense and automotive to the industrial and energy sectors. Advanced manufacturing solutions, industrial automation, and renewable energy systems are all accessible through the organization. TASL's engineering expertise and dedication to innovation enable it to deliver customized solutions that cater to the evolving needs of industrial clients. TASL is at the forefront of driving innovation and efficiency in automation technologies and sustainable energy solutions.

Projects and Collaborations of Note

TASL has participated in a number of high-profile projects and partnerships that have demonstrated its technical attributes and subject expertise. The business has collaborated with global aerospace behemoths such as Lockheed Martin, Boeing, and Airbus to produce aircraft components and systems. The partnership of TASL with these prominent firms has not only enhanced its reputation but has also aided the expansion of the Indian aerospace sector.

GE Aerospace

GE Aerospace and Tata Advanced Systems have renewed their manufacturing agreement, which calls for TASL to continue producing and supplying various commercial aviation engine components to GE's global engine production facilities. The multi-year, long-term contract is valued at over $1 billion, demonstrating GE and TASL's increasing cooperation in the aerospace sector. The engine parts will be manufactured in Hyderabad at the Tata Centre of Excellence for Aero Engines. In 2018, the Tata Centre of Excellence for Aero Engines was established in India to manufacture CFM International LEAP engine components. The LEAP engine has logged more than 23 million engine flight hours since entering service in 2016, continuing to improve fuel efficiency and asset utilization for today's newest commercial narrowbody aircraft.

Airbus A320neo

TASL's major project is manufacturing aerostructures for the Airbus A320neo airplane. TASL manufactures a variety of components, including cargo doors and bulk cargo doors, at a fresh manufacturing facility in Hyderabad, employing cutting-edge robotics and automation technology as part of the contract. Each shipset will include two cargo doors along with one bulk cargo door, which is then delivered to Airbus for final assembly. This collaboration has bolstered India's standing as a global aircraft production base. Airbus presently acquires $735 million in components and services from more than 100 Indian suppliers on an annual basis. Today, crucial technologies and systems are designed, manufactured, and maintained in India for every Airbus commercial aircraft and helicopter.

C-295 Military Transport Aircraft

The C295 is an outstanding aircraft used for tactical transport of up to 71 troops or 50 paratroopers and logistic missions to locations inaccessible to heavier aircraft. The aircraft can drop paratroops and cargo as well as provide casualty or medical evacuation. The aircraft is capable of carrying out distinctive missions such as disaster relief and maritime patrol. The C-295 military transport aircraft will be designed and manufactured in India through a partnership between Airbus Defence and Space and TATA Advanced Systems Limited (TASL). The $2.65 billion (Rs 21,935 crore) project would see Airbus deliver the first 16 aircraft in flyaway condition, while the consortium, which includes TASL and Tata Consultancy Services (TCS), will construct another 40 units at the Vadodara facility.

The consortium will manufacture 13,400 parts, 4,600 sub-assemblies, and seven major assemblies of the C-295 transport aircraft, whereas Airbus will provide engines, landing gear, avionics, and an electronic warfare (EW) suite. The TATA consortium will handle the integration of numerous systems and engines, as well as accompanying evaluations, final flight testing, and aircraft delivery. The 16 aircraft are scheduled to arrive between September 2023 and August 2025. The delivery of the Indian-made aircraft would begin in September 2026.

C-130J-30 Super Hercules

TLMAL emerged in 2010 as a joint venture between Tata Advanced Systems Limited (TASL) and Lockheed Martin Aeronautics in conjunction with the Indian Air Force's procurement of its first six C-130J-30 Super Hercules airlifters. The 150th empennage delivery celebration was held at TLMAL's Adibatla facility in Hyderabad, and was attended by Telangana's minister for industries and information technology, K. T. Rama Rao, as well as top officials from the state government and TLMAL. TLMAL empennage assemblies include the aircraft's horizontal and vertical stabilizers and the leading edge and tip assemblies. TLMAL empennages are installed on C-130Js, which are used to assist vital global search and rescue, peacekeeping, combat delivery, maritime patrol, special operations, aerial refueling, medevac, and humanitarian response missions.

TLMAL empennages are also featured in the LM-100J, the Super Hercules' commercial derivative. The C-130J Super Hercules is the proven standard in tactical airlift, offering an unrivaled combination of mobility and performance to complete any mission, anytime, anywhere. It is the current variant of the C-130 Hercules and the preferred airlifter for 26 operators in 22 nations. The Indian Air Force operates a fleet of 12 C-130J-30 air lifters, demonstrating the airlifter's versatility by landing on the world's highest landing strip — Daulat Beg Oldi in northern India — and relying on the C-130 for regional military, peacekeeping, medevac, humanitarian relief, and natural disaster support missions.

General Dynamics F-16 Fighting Falcon

Lockheed Martin has announced that it will manufacture all of the F-16 fighter jet's wings in India. The US defense firm announced a collaboration with Indian firm Tata Advanced Systems to manufacture the wings at a facility in Hyderabad, commencing in late 2020. The production of F-16 wings in India would boost TASL's capabilities to meet global aerospace requirements for fighter aircraft while also supporting 'Make in India.' The planned shift of F-16 wing manufacturing to India is not contingent on the Indian government selecting the F-16 for the Indian Air Force.

Awards and Recognition

The relentless pursuit of excellence at TASL has culminated in numerous awards and recognitions. The business has received recognition for its contributions to the defense, aerospace, and automotive industries. TASL has achieved Industrial Excellence in the Aerospace and Defence industry and has been recognized with awards such as the "Best International Transition" Award, the "American Helicopter Society", and the "Best Joint Venture" Award by India - Aerospace and Defence Awards. To demonstrate TASL's excellence to our customers, their outstanding Quality and Delivery performance has been recognized by customers with awards ranging from the Rolls Royce Trusted to Deliver Excellence award to Lockheed Martin RMS Elite, GE Supplier of the Year, and Boeing Supplier Appreciation Award. TASL was additionally accredited with "Boeing Gold Supplier" status. These awards demonstrate TASL's dedication to providing world-class products, services, and solutions. TASL's recognition strengthens its position as a reliable partner in the sectors it serves.

Prospects for the Future and Growth Opportunities

In the years ahead, TASL will be well-positioned to capitalize on growth prospects in the defense, aerospace, automotive, and industrial sectors. TASL strives to benefit from government initiatives and strategic partnerships as India emphasizes indigenous production and self-reliance in defense. Strong engineering capabilities, manufacturing expertise, and a commitment to innovation will be major drivers of the business's future growth. TASL also intends to broaden its global reach by exploring diverse markets and forming partnerships with international players. TASL is poised to play an instrumental role in influencing the future of the sectors within which it operates by leveraging its fundamental competencies while remaining at the forefront of technological breakthroughs.

Conclusion

Tata Advanced Systems Limited (TASL) has emerged as a key participant in the aerospace and defense industries, providing a diverse range of innovative solutions in a variety of industries. TASL has established itself as a valued partner for global customers through its steadfast commitment to quality, technological excellence, and customer satisfaction. TASL is well-positioned for future development and success, strongly emphasizing innovation, CSR initiatives, and partnerships.

With Inputs from The Hindu Business Line, Airforce Technology, Deccan Chronicle, The Statesman, CNBC, Tata, Tata Advanced Systems

Cyclone Biparjoy disrupted flight operations in Mumbai. Several flights were affected last evening due to bad weather conditions around the city. Heavy rain and gusty winds hit the city as the cyclone Biparjoy intensified into an extremely severe cyclonic storm and advanced ahead towards Gujarat. Several flights were either cancelled, delayed or diverted due to the bad weather conditions. Hundreds of anxious passengers expressed their displeasure about the situation on social media. Some passengers took to Twitter to complain about the inconvenience.

In a statement, Air India said that some of its flights running from Mumbai will be delayed due to bad weather and the temporary closure of the runway. "Inclement weather conditions and the temporary closure of Runway 09/27 at the Mumbai airport, in addition to other consequential factors beyond our control have resulted in delays and cancellation of some of our flights. We regret the inconvenience caused to our guests, as we make all effort to minimise the disruptions” Air India tweeted.

India's biggest airline IndiGo also announced some changes in its scheduled flights. "The agony of flight delays is equally troublesome for us. It is only under extremely uncontrollable situations we're compelled to make such changes in the schedule. We look forward to your kind understanding," Indigo tweeted responding to a passenger.

IMD's Prediction on the Cyclone

IMD has predicted that cyclone Biparjoy is likely to intensify into an extremely severe cyclonic storm and is expected to hit Gujarat and Pakistan on June 14 with a windspeed of 135 kmph. "Cyclone Alert for Saurashtra & Kutch Coast: Orange Message. ESCS BIPARJOY at 0530IST of today over Aeast central & adjoining NE Arabian Sea near lat 19.2N & long 67.7E, about 380km SSW of Devbhumi Dwarka. To cross near Jakhau Port, Gujarat by noon of June 15," the Indian Meteorological Department tweeted early Monday morning.

The IMD has further predicted that there will be light to moderate rainfall in most places with heavy to very heavy rainfall at isolated places very likely over Kutch, Devbhumi Dwarka, Porbandar, Jamnagar, Rajkot, Junagarh and Morbi districts of Saurashtra and Kutch on Wednesday. The weather office has also issued a 'thunderstorm' alert for some districts in coastal Maharashtra.

The Pakistan government has also advised authorities in Sindh and Balochistan to remain alert. Rain accompanied by thunder is expected on the coasts of Sindh and Makran from the night of June 13, said Pakistan Meteorological Department (PMD).

India is a critical aviation market for growth with all kinds of opportunities and Air India is on a strong mission to overhaul its business, according to airlines' grouping Star Alliance's CEO Theo Panagiotoulias. Star Alliance, which has been in existence for more than 25 years, is a global grouping of 26 airlines, including Air India, Lufthansa, Singapore Airlines and South African Airlines.

Sounding bullish about the revival of Air India, a long-time member of the alliance, Panagiotoulias said the airline is on a "very strong mission" and has embarked on a major overhaul of its business. "India is a critical growth market and offers all kinds of opportunities," he told PTI in an interview here this week.

He also emphasised that having Air India in the alliance is a huge piece of the puzzle of the global network. His comments also come against the backdrop of the Air India group taking various measures to strengthen its operations, including placing a historic order for 470 planes in February this year and expanding services. Besides, India is one of the fastest-growing aviation markets in the world and has witnessed a strong recovery in domestic air passenger traffic after being severely impacted by the coronavirus pandemic.

Efforts are also going on to develop an international hub in the country. After the pandemic, Panagiotoulias said there has been a global recovery with varying speeds. "I would say North America and Europe have recovered a lot quicker than the Asia Pacific region". The Star Alliance chief replied in the affirmative on whether premium travel is on the rise after the pandemic. "Premium travel has increased, especially leisure premium and not corporate premium. We are seeing a lot of people wanting to spend on personal experiences in a premium cabin," he noted. 

Panagiotoulias said the 26 members cover the globe comprehensively on whether the alliance is looking for more members. Star Alliance says that its members include many of the world's most significant airlines and smaller regional airlines. It highlights that these combinations offer easy connections to almost any destination across the globe.

Newly appointed CEO

Panagiotoulias has more than 25 years of international experience in the airline and aviation industry and has just joined Star Alliance from Hawaiian Airlines. Australian-born Panagiotoulias joins Star Alliance from Hawaiian Airlines, where he has been senior vice president for global sales and alliances since 2014. This move comes after current CEO, Charlotta Wieland, who had been serving as interim CEO of the 26-member alliance, returns to her regular role as vice president of Alliances and Industry Affairs at SAS Scandinavian Airlines.

About Star Alliance

Star Alliance was founded by five airlines from the Americas, Europe and Asia in 1997, and currently, it has 26 carriers as members. The members come together at over 50 global hubs to offer smooth connections across a world-leading global network. As per its website, a management company based in Frankfurt and Singapore coordinates the alliance’s projects and activities, including airport co-location, digital infrastructure, frequent flyer integration and joint business lounge projects.

An alliance is an agreement between several airlines to pool resources. This move, in turn, gives them a greater ability to compete against other airlines. The first benefit this brings is codeshare flights. While codeshare agreements do exist outside of alliances, the highest density will be found within alliance members.

Star Alliance's 26 member airlines operate a fleet of ~5,033 aircraft, serving more than 1,290 airports in 195 countries on more than 19,000 daily departures. The alliance has a two-tier rewards program, Silver and Gold, with incentives including priority boarding and upgrades. Like other airline alliances, Star Alliance airlines share airport terminals (known as co-locations), and many member planes are painted in the alliance's livery.

WestJet is a well-known Canadian airline headquartered in Calgary, Alberta. It has built a reputation for providing travellers across the country and beyond with economical and dependable air travel services. WestJet established Swoop as an ultra-low-cost subsidiary as part of its business model to provide even more cost-effective options to travellers.

Swoop Background

Swoop, which was launched by WestJet on September 27, 2017 and began operations in June 2018, was designed to appeal to budget-conscious customers searching for affordable air travel without compromising safety or service quality. Swoop, as an ultra-low-cost carrier, employed an array of cost-cutting techniques, such as no-frills flights, charging for additional services, and operating a simplified fleet of aircraft.

The Pilots' Collective Agreement

Collective agreements are essential in the aviation industry since they determine the terms and conditions of employment for pilots and other personnel. Swoop's pilots' collective agreement was recently ratified, marking a crucial step forward in the integration process. The collective agreement reached between WestJet and the Air Line Pilots Association (ALPA) provides a 24% compensation increase for pilots over four years. According to the union, 87% voted in favour of the agreement, "which goes a long way towards recognizing the value and expertise the pilots bring to their airline and will help solve many of WestJet's pilot attraction and retention issues." The agreement outlines the terms under which Swoop pilots will transition into WestJet's mainline operations. It ensures a seamless and equitable transfer for pilots by taking into consideration variables like seniority, benefits, and career advancement opportunities within WestJet.

Mainline Operations Integration at WestJet

The decision to close Swoop and integrate it into WestJet's mainline operations is expected to benefit both airlines significantly. WestJet intends to simplify its offerings, minimize redundant expenses, and increase overall operational efficiency by consolidating resources and operations. This integration will provide travellers with a more coherent and uniform brand experience. The merger process includes a timetable with a projected completion date of October 2023. Careful preparation and execution will be carried out during this time to guarantee a smooth transition for employees and customers. "The WestJet Group is pleased to have reached an industry-leading agreement in negotiation with ALPA that recognizes the value and instrumental contributions of our current and future pilots," stated WestJet Group CEO Alexis von Hoensbroech.

"This agreement strengthens our ability to provide certainty and career opportunities across our organization for years to come while ensuring the WestJet Group's competitive sustainability." Hoensbroech stated that the 16 current Swoop aircraft that provide 'affordable' low-cost fares across Canada would leave a void in Canadian airspace; however, he plans to continue to offer great low-cost fares and ensure that each of its 180 fleet provides affordable travel options for passengers. Von Hoensbroech continued, saying: "This integration will enhance our ability to serve a broader spectrum of guests. Rather than simply 16 aircraft serving the ultra-low-cost market, each aircraft in our 180-strong fleet will offer ultra-affordable travel options through a premium in-flight experience."

Implications of the Closure

Swoop's closure has far-reaching implications for a variety of stakeholders, including personnel and customers. The merger process will have an impact on Swoop personnel, but WestJet is dedicated to minimizing any negative consequences. The company will prioritize supporting and assisting affected personnel, including exploring options within the greater WestJet organization. WestJet will make special efforts to accommodate clients who have booked flights with Swoop. Alternative options, such as rebooking on WestJet flights, will be provided to enable a smooth transition with minimal inconvenience. WestJet is currently evaluating its intentions for Swoop's routes and operations. Some routes may be integrated into WestJet's current network, while others may be adjusted or discontinued based on market demand and operational considerations.

Conclusion

WestJet's plan to liquidate and integrate its ultra-low-cost subsidiary, Swoop, signals a significant strategic shift for the corporation. WestJet seeks to improve efficiency while offering a more uniform travel experience for its consumers by merging resources and simplifying processes. While this decision may have immediate consequences for personnel and customers, WestJet is dedicated to minimizing disruptions while supporting those affected throughout the integration process.

With Inputs from WestJet, AeroTime, CBC