In October, domestic air passenger traffic increased by 67%

Domestic air passenger traffic grew by a whopping 67% year-on-year at around 87-88 lakh in October, on the back of festive season demand amid a continuous fall in the number of COVID-19 infection cases, says an ICRA report.

According to credit rating agency ICRA, domestic passenger volume in October 2020 was 52.71 lakh.

The growth in domestic passenger traffic, on a sequential basis, was nearly 24-25% higher compared to 71 lakh, as per ICRA.

(Image Courtesy - DNA India)

Moreover, domestic carriers operated 46% more flights at 72,000 during the month under review over 49,150 departures logged in October 2020, ICRA said, adding, on a sequential basis, the number of departures in October 2021 was higher by around 18%, as COVID-19 infections demonstrated a downward trajectory.

However, higher aviation turbine fuel (ATF) prices continue to pose a near-term challenge with price seeing a sequential increase of 13.9% in November 2021, it stated.

"For October 2021, the average daily departures were at around 2,400, significantly higher than the average daily departures of 1,585 in October 2020, and higher than around 2,100 in September 2021.The average number of passengers per flight during October this year was 122, against an average of 117 passengers per flight in the earlier month.Though the recovery continued in October, demand continues to be subdued from the corporate traveller segment as reflected by passenger traffic being lower by around 28 per cent in October 2021, compared to pre-COVID levels."Suprio Banerjee, Vice President and Sector Head, ICRA

The government allowed the airlines to operate at 100% capacity from October 18, which is a step in the right direction, given the onset of the festive season, ICRA said.

The Civil Aviation Ministry had reduced the permissible capacity deployment to 50% of pre-COVID levels, with effect from June 1, 2021, due to the resurgence of the second wave of the pandemic, which has now been restored to 100% in subsequent phases over the months.

(Image Courtesy - Quora)

According to ICRA, one major concern that continues to worry the aviation sector is the ATF prices, which have seen a sharp increase of 94.4% on a year-on-year (Y-o-Y) basis till November 2021, mainly on account of an increase in crude oil prices.

This, coupled with relatively low capacity utilisation of aircraft fleet, will continue to weigh on the financial performance of Indian carriers in FY2022, ICRA said, noting that the credit profile of most Indian carriers continues to be characterised by a weak liquidity position.

The month of October was the bearer of good news for the Indian civil aviation market as domestic air traffic surged and reached record levels nearing pre-COVID demand sentiment.

The Indian Pilots Guild (IPG), one of Air India's pilot unions, has expressed hope that the airline's outgoing management will ensure that the process of settling employee arrears is carried out properly before it is sold to Tata Sons.

The guild wrote to Air India's CMD late Sunday, November 7, expressing optimism about a new beginning with the airline's new owners, while also urging the current administration not to exploit the employees, as this could lead to mass protests and industrial unrest just as the company changes hands.

The 2006 Wage Agreement, according to the IPG, allocated a monthly Layover Subsistence Allowance (LSA) for captains and co-pilots. Over the years, 25% of these funds have been held back and are now due.

Furthermore, overtime payments arising from this wage agreement are long overdue, according to the statement, which also stated that in 2012, a wrongful and unilateral 25 % pay cut was imposed on all employees.

Late last month, the central government signed a share purchase agreement with Tata Sons for the sale of Air India for INR 18,000 crore.

Tatas outbid a consortium led by SpiceJet promoter Ajay Singh for INR 15,100 crore and the government's reserve price of INR 12,906 crore for the sale of its entire stake in the loss-making airline.

As we are all aware, the government is committed to settling all outstanding dues with employees pre-hand-over. In this regard, certain points must not be missed whilst implementing the said process, the IPG said in the letter.

The guild claimed that LSA was an allowance provided to keep oneself afloat on international layovers where the cost of living is exponentially higher, and that pilots would spend money from their own pockets on international layovers because these sums of money were not properly paid on time.

The reimbursement of these foreign currency expenses, which have been accrued for many years, has been long overdue. LSA members are responsible for the arrears resulting from the 25% cut.

The guild stated in the letter that once the arrears are paid, there should be no tax burden on the pilots. It went on to say, "This is a reimbursement of our already incurred expenses at foreign stations."

Under no circumstances should these arrears be considered a form of income. It is most necessary that the books of accounts reflect the same and a suitable method of disbursement be devised to avoid any query from the Indian regulatory authorities, the letter stated.

Employees' liabilities have long been known to the company, as has the government's commitment to pay these debts. It stated that there is a need for transparency in the matter.

The IPG demanded a detailed statement with a working calculation of pending dues for each of its members in the letter.

While the management has acknowledged in writing that the money that has been withheld for several years should be returned to the employees, the guild claims that it would be a mockery not to properly compensate the employees with an appropriate rate of interest on the funds withheld.

It has been over 9 years since the first deduction and it would be highly unjust if the company were to have enjoyed interest-free finance at the expense of the employees, the letter said.

Stating that the points raised in the letter should not be taken as the guild’s demands but rather as a reminder of the company’s obligation to justly settle the already promised dues, the letter said at this critical juncture where the international skies have opened up and the domestic demand is steadily rising due to the festive season, the pilots are once again being stretched beyond capacity to cover additional flights.

We trust that you will ensure that the process of settling arrears is righteously carried out to not leave the employees feeling cheated. We are truly optimistic about making a fresh start with our new owners.

We trust that you will ensure that the process of settling arrears is righteously carried out to not leave the employees feeling cheated. We are truly optimistic about making a fresh start with our new owners. We urge you not to exploit us employees whilst settling our arrears as that would probably lead to mass protest and industrial unrest just as the company changes hands, the IPG said.

Prime Minister Narendra Modi will perform the groundbreaking ceremony for the Noida International Airport near Delhi on November 25, the local MLA said on Monday, November 8.

BJP leader and Jewar MLA Dhirendra Singh said Uttar Pradesh Chief Minister Yogi Adityanath will also attend the 'Bhoomi Puja' at the greenfield project site at Jewar in district Gautam Buddh Nagar.

PM Narendra Modi with CM of UP Yogi Adityanath (Image Courtesy - India Today)

The Noida International Airport is being developed in public-private partnership (PPP) mode and is touted to be the biggest airport in India upon completion. It will be developed in four phases, with the entire project estimated to cost around INR 30,000 crore, according to officials.

The airport is being developed by Yamuna International Airport Private Limited (YIAPL), a 100% subsidiary of Zurich International Airport AG, the Swiss concessionaire of the project.

"Speculation was rife for several months about the Bhoomi puja for the Noida International Airport. Prime Minister Modi's visit to Jewar was expected for a long time but finally, it has been decided for November 25 when the Bhoomi puja will happen," the Jewar MLA said in a statement.

On Monday, November 8, District Magistrate Suhas L Yathiraj, Police Commissioner Alok Singh, Joint Commissioner Love Kumar, YIAPL CEO Christoph Schnellmann, Yamuna Expressway Authority CEO Arun Vir Singh, airport project in charge Shailendra Bhatia, among others, held a meeting to discuss arrangements for the programme in.

Two locations have been shortlisted for the ceremony, which is close to Ranhera and Rohi villages in Jewar, the MLA said, adding that the final decision on the venue would be taken in a day or two.

He said the airport project was among the priorities of the Adityanath government since it came to power in Uttar Pradesh in 2017 and credited the chief minister with expediting work on it.

(Image Courtesy - Construction Week Online India)

Earlier, Jewar and the nearby region was counted among less developed areas but is now growing leaps and bounds, with the airport and a film city in the offing, he added.

Singh also expressed gratitude to the villagers who agreed to the acquisition of their land by the government for the mega greenfield project.

Recently, Christoph Schnellmann, CEO, Yamuna International Airport Private Limited (YIAPL) said if COVID-19 pandemic recovery continues, the first phase of Noida International Airport (NIA), near Delhi, would be completed by September 2024 with one runway and capacity to handle 12 million passengers annually.

Global transportation company UPS said on Monday, November 8 that it has directly connected Europe and India for the first time by starting a Cologne-Delhi-Cologne cargo flight that will operate five times a week. Cologne in Germany is the UPS's largest international hub, the company said in a statement.

UPS Boeing 747 (Image Courtesy - FLUG REVUE)

A UPS 747 flight is now connecting India directly to Europe and connecting UPS customers to North and Latin American markets five days per week. That doubles the company's previous capacity to and from India for small and medium-sized business customers looking to grow their revenue base. UPS's first direct flight from India will connect Delhi to its largest international hub at Cologne, Germany.

Customers have been diversifying their supply chains as they respond to pandemic disruptions. And cargo space in the belly of passenger aircraft - normally reliable and cost-effective - has been significantly reduced. Now, buoyed by market demand and with an eye on business continuity, Indian entrepreneurs are looking for reliable alternatives to import and export products.

Cargo Hub, Cologne Bonn Airport, Germany (Image Courtesy - Cologne Bonn Cargo)

What UPS brings to the table:

A smart global logistics network connecting buyers and sellers with speed, precision and ease, regardless of the distance that separates them.A mission to make doing business across international borders just as easy as doing business across town.More capacity with the Boeing 747 (payload of 307,000 pounds), which translates to lower cost for customers and lower emissions with fewer flights needed.

"When business demand is increasing and volumes globally are being challenged, what you need is a smart logistics network that can respond to what customers are asking for, in an altered business environment. The agility to connect major economies to India via a direct flight for exports and imports is an example of UPS's better, not bigger strategy and will provide reliability and expanded capacity to UPS's customers."Rachid Fergati, Managing Director Middle East, Central Asia, and the Indian Subcontinent, UPS

The direct flight between India and Europe will keep supply chains moving, provide better connectivity, and increase predictability for UPS customers.

UPS (NYSE: UPS) is one of the world's largest companies, with a 2020 revenue of $84.6 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories.

"India is an integral part of our international growth strategy. It's why we opened a dedicated express terminal at the Delhi airport last year.The past months have been an inflexion point for international supply chains. But we were ready. We've been in business for more than a century, far longer than any of our competitors. If there's one thing we know how to do, it's how to turn challenges into opportunities."Deepak Shrivastava, Country Manager, UPS Express India

UPS is a major global freight carrier headquartered at UPS Worldport in Louisville, Kentucky, USA. The company is part of Georgia, USA-based United Parcel Service, Inc. UPS integrates small packages and heavy freight in its daily network of more than 500 aircraft and over 2,200 daily movements that reach more than 700 destinations in over 220 countries and territories worldwide.

UPS' extensive air system includes international air hubs in Cologne, Germany; Shanghai, China; Miami, USA, an intra-Asia hub in China; and UPS Worldport in Louisville, Kentucky.

SpiceJet on Monday, November 8 launched a new scheme under which passengers will be able to pay for tickets in three, six or 12 instalments.

"As part of the launch offer, customers will be able to enjoy three months EMI option at no additional cost (no interest)," the airline said in a press release.

The airline has introduced a 'Pay Later' or 'Cardless EMI' scheme that allows greater flexibility, affordability and convenience for passengers, who can now book an airline ticket online and pay in three, six, nine or 12 instalments.

The payments product called 'Walnut 369' is powered by Capital Float and will be available on the payment page of the SpiceJet website.

To avail the EMI scheme, passengers need to provide basic details like PAN number, Aadhar number or VID and verify it with a one-time password, it mentioned.

Customers will have to make payment of the first EMI by providing their UPI ID and subsequent EMIs would be deducted from the same UPI ID, it noted.

Passengers do not have to provide any credit card or debit card details to avail the EMI scheme, it said.

"Our latest initiative aims to add more convenience and allow passengers to pay in easy instalments as per their budget.Moreover, in case a customer wishes to end the loan before the chosen EMI period, they can do the same and no foreclosure charge will be levied."Shilpa Bhatia, Chief Commercial Officer, SpiceJet

At present, the airline operates a fleet of Boeing 737s, Q-400s and freighters. It is the largest regional player operating 63 daily flights under the UDAN regional connectivity scheme.

Full-service carrier Vistara has commenced non-stop flight services to Paris from Delhi under the air bubble agreement between India and Europe.

The airline operated its inaugural direct flight to Charles de Gaulle Airport, Paris from Delhi’s Indira Gandhi International Airport on Sunday, November 7, a company release said on Monday, November 8.

Vistara's Boeing 787-9 Dreamliner

Under the pact, Vistara will fly twice a week between the two cities – on Wednesday and Sunday — with Boeing 787-9 (Dreamliner) aircraft, it said.

Paris is the seventh overseas airport for the Tata Sons-Singapore Airlines joint venture, where it currently operates its flight's services under the air bubble agreement.

"We are delighted to expand our global footprint as we bring India’s finest airline to Paris.Paris is one of the most popular destinations in Europe and Charles de Gaulle is an important airport for any airline intending to serve the region.Given the strong economic and cultural ties there is a high demand for direct connectivity between India and France, and therefore Paris fits our network very well."Leslie Thng, Chief Executive Officer, Vistara

London, Frankfurt, Dubai, Doha, Sharjah, and Male are the other international destinations besides the newly-launched Paris.

Bookings for the flights are open on all channels, including on the airline’s website, mobile app, and through travel agents, Vistara said.

https://twitter.com/airvistara/status/1457408771961987075

Vistara has a fleet of 50 aircraft comprising Airbus A320, Airbus A321neo, Boeing 737-800NG, and Boeing 787-9 planes.