In September, domestic air passenger traffic increased by 2-3%

In September, India's domestic air passenger traffic increased by 2-3% to around 69 lakh, up from around 67 lakh in August, according to credit rating agency ICRA in a statement released on Wednesday, October 6.

In September 2021, the local carrier had 54% more capacity than the same month the previous year.

It said that y-o-y, air passenger traffic growth in the month under review was around 74% higher than September 2020.

"For September 2021, average daily departures were at around 2,100, significantly higher than the average daily departures of around 1,321 in September 2020, and higher than around 1,900 in August 2021, though they remained lower than around 2,200 in January 2021.The average number of passengers per flight during September was 113, against an average of 117 passengers per flight in August. Though the recovery continued in September, demand continues to be subdued from the corporate traveller segment as reflected by passenger traffic being lower by around 38% in September compared to pre-Covid levels."Suprio Banerjee, Vice President and Sector Head, ICRA

It said that airlines saw around 61,100 departures in September, compared to 39,628 departures in the same month of 2020, and that the number of departures in the previous month was up by around 6% sequentially, as Covid-19 infections showed a downward trend.

Due to the resurgence of the second wave of the pandemic, the Civil Aviation Ministry reduced the permissible capacity deployment to 50% of pre-Covid levels, effective June 1. With effect from August 12, it increased this capacity to 72.5%, which has now been increased to 85% with effect from September 18 until further orders.

(Image Courtesy - Today Show)

Additionally, effective September 18, the ministry relaxed the fare cap rule wherein the fare caps in each of the bands will be applicable up to the next only 15 days on a rolling basis, implying that the minimum and maximum fare chargeable will continue to be rolled over for the next 15 days cycle compared to 30 days earlier.

However, ICRA continues to maintain a negative outlook on the Indian aviation industry. It conveyed that the financial performance of the Indian airlines is likely to remain weak as material recovery in passenger traffic to pre-Covid-19 levels is unlikely in the near term. This is due to continued restrictions on international travel and subdued demand from the corporate traveller segment.

(Image Courtesy - The Economic Times)

Given the onset of the festive season, ICRA believes that the increase in permitted capacity to 85% levels is a step in the right direction. The reduction in the fare cap rollover period from 30 to 15 days is also a move toward market-driven pricing, as it was before Covid, when pricing was determined by actual demand-supply dynamics and real passenger load factors, according to the statement.

ICRA said that aviation turbine fuel (ATF) prices have seen a sharp increase of 78.6% on a Y-o-Y basis till October 2021, attributed to increasing in crude oil prices, coupled with low capacity utilisation of aircraft fleet will continue to weigh on the financial performance of Indian carriers in FY'2022.

Furthermore, the credit profile of most Indian carriers continues to be characterised by a weak liquidity position, it added.

In July, domestic air passenger traffic jumped 57% to around 49 lakh.

(With Inputs from PTI)

Cover Image - Daily Sabah

After a baby was born on board the Boeing 787 on Tuesday, October 5, Air India's London-Kochi flight AI 150 was rerouted to Frankfurt. After the plane took off from London at 1:21 PM local time, the woman went into labour (6:51 PM IST).

https://twitter.com/airindiain/status/1445802605515468807

The baby was delivered by two doctors and four nurses who were among the passengers, as well as the flight's cabin crew. The plane was flying over the Black Sea on its way to India at the time. The airline decided to divert to the nearest airport, Frankfurt, and turn in that direction because the newborn and mother required medical attention. Around 11 PM IST, the plane touched down in Frankfurt.

An AI spokesperson confirmed a team of two doctors and four nurses helped in the delivery. "All onboard equipment were used, two first-aid kits and one physician's kit. The baby and mother, who was seven months pregnant, are fine. The woman, newborn and one person travelling with her have alighted at Frankfurt.”

(Image Courtesy - Twitter)

The aircraft was carrying over 210 people on board, including 193 economy and 11 business class passengers. ?

“The human face of Air India was evident yet again as a lady passenger flying from Kochi to London went into labour mid-air. Our experienced cabin crew swung into action and identifying doctors on board sought their assistance to deliver the child. We have always put passenger wellbeing over monetary aspects. The moment the baby was born and knowing that our destination was several hours away, we immediately decided to divert to Frankfurt."Spokesperson, Air India

Many AI employees see the birth of a baby just ahead of the announcement of the airline’s future buyer, likely to be founder Tata Group, as a “good sign”. “We are awaiting the rebirth of our airline under the new owner, hopefully, the Tatas. This is the beginning of new beginnings,” said a long-time employee.

Similarly in March 2021, a baby girl was born on an IndiGo flight which was flying from Bangalore to Jaipur. A doctor, who was on the same flight, safely delivered the baby.

In a similar instance, a baby boy was born inside IndiGo’s Delhi-Bengaluru flight in October 2020. Luckily, a doctor was on board and assisted with the premature delivery.

With two crucial audits around the corner, the Ministry of Civil Aviation (MoCA) has put forward the proposal that deputy director generals (DGs) and officers of Indian Air Force (IAF) be considered for the post of chief of India’s aviation regulator-DGCA.

Mr. Arun kumar, the reigning head of the Directorate General of Civil Aviation (DGCA) , has been promoted as secretary and is expected to move out soon.

Arun Kumar | The Economic Times

The US Federal Aviation Administration (FAA) will be auditing India's safety mechanism this year followed by the ICAO, who is scheduled to audit by early next year.

During the last audit, ICAO pointed out that the director general’s post doesn’t have fixed recruitment rules and tenure. We are fixing this before the auditsaid a senior government official.

The international assessment by the ICAO and FAA scrutinize the overall adequacy of a country’s laws, administr­ative rules and regulatory sta­ffing. Also worth noting is the fact that these audits are scheduled to take place at a time when the country had recently witnessed a fatal crash when an Air India Express flight overshot the runway at Kozhikode amd plunged into a gorge killing 20 out of the 190 onboard-including the pilot and co-pilot.The final investigation reports revealed systematic faults and non-adherence to SOPs as the main cause.Also, the FAA in 2014,had downgraded India’s aviation safety ranking, finding regulatory oversight to be inadequate.This downgrade can be a huge blow to the Indian operators looking to expand their operations in the overseas.

Hence, there has been several demands from the aviation fraternity to find someone who's an expert in aviation, to head the civil aviation regulator and is independent of MoCA.

Regulators in developed markets are headed by industrial veterans and aviation experts.The FAA is headed by Steve Dickson who has nearly three decades of experience at Delta Air Lines and who retired as senior vice president of flight operations.

Steve Dickson | Geospatial World

The late Kanu Gohain (2006-08), was the last known industry veteran to have headed the DGCA, with 35 years of experience in the industry.

Kanu Gohain | The Hans India

Not everyone is happy with the newly proposed rules though. The past and present officials of MoCA and DGCA are sceptical since the selection committee comprises of three Indian Administrative Service (IAS) officials and the appointment will not be through the Union Public Service Comm­ission (UPSC) selection board.

This is just an eyewash to satisfy the ICAO and FAA officials. The selection committee is headed by a Cabinet secretary and has a secretary and a joint secretary of MoCA as members. The candidate will also not be interviewed by UPSC, which makes it clear that it will be an IAS officer nominated by MoCAsaid a former senior DGCA official.

What do the experts say?

According to expert opinion, those with exposure in civil aviation, inherently has association with an airline, which can be problematic if the person is made the DGCA chief.The head of DGCA is expected to have leadership qualities and ability to coordinate with multiple ministries and foreign governments and only an experienced IAS official can do that.

The current DG has been good. He gives danda (stick) very often but also knows when to offer a carrot. That is an ability the regulator of a growing market like India should haveformer senior DGCA official

COVER: Eurocontrol

Air traffic restrictions between India and Germany are hurting both economies, and the Lufthansa Group is eagerly awaiting the Indian government's approval of more flights between the two countries, according to Carsten Spohr, the company's CEO.

After accusing Lufthansa of being a beneficiary of "inequitable traffic distribution" in September 2020, India's aviation regulator DGCA now allows the airline to operate only 10 weekly flights from India to Germany.

Carsten Spohr, CEO, Lufthansa Group (Image Courtesy - The New York Times)

"The first thing we need is more traffic right now (between India and Germany), to the "open skies" we had before, because I think, right now, we are blocking business between the economies of India and Germany by not allowing enough travellers to go back and forth.So, that is hurting both economies because both economies are dependent on imports and exports."Carsten Spohr, CEO, Lufthansa Group

According to him, the German and Swiss governments are in constant contact with the Indian government about "additional flights."

He stated that there are currently no international flights operating between India and Switzerland, but that he hoped that services between the two countries would resume soon.

The Lufthansa Group, based in Germany, operates several European airline brands, including SWISS, Lufthansa, and Austrian Airlines.

Due to the coronavirus pandemic, scheduled international passenger flights have been suspended in India since March 23, 2020.

(Image Courtesy - Lufthansa Group)

However, special flights have been permitted under "air bubble" arrangements India has formed with approximately 28 countries, including Germany.

When asked about his opinion about Vistara's probable merger with Air India, Spohr replied: "That is something that we are looking for with large interest. Obviously, Vistara is partly owned by Singapore Airlines, which is a strong partner of Lufthansa. Air India is a part of Star Alliance, so here are two friends (Air India and Vistara) getting together."

The Indian government had invited Expression of Interests (EoIs) for Air India on January 27, 2020.

According to sources, the Tata group -- which runs Vistara and AirAsia India -- is currently the top contender to win Air India.

Spohr said he plans to come to India early next year to talk to the Indian carriers to see which additional business can be jointly generated on the "important market" between India and Europe.

(Image Courtesy - Travel Radar)

When asked if this visit would be about any new type of codeshare agreement, he replied: "It will be about expanding our partnership. We already have a codeshare agreement with Air India. We could be doing more of that."

However, he again mentioned the need of having more air traffic between India and Germany.

"At Lufthansa, we can not wait for the Indian government to reopen (scheduled air traffic) and I promise you that my best aircraft would be visiting your home country. So, that is something that we are waiting for eagerly," he stated.

In a two-way codeshare agreement, each airline can sell seats on the other's flights through its distribution system.

On September 29, 2020, Lufthansa announced that all flights from India to Germany will be cancelled between September 30 and October 20, 2020.

A few hours later, the DGCA issued a statement claiming that there are restrictions in place for Indian nationals wishing to travel to Germany, putting Indian carriers at a significant disadvantage and resulting in "inequitable traffic distribution" in favour of Lufthansa.

(Image Courtesy - ORFonline.org)

As against Indian carriers operating three-four flights a week, Lufthansa operated 20 flights a week, it added.

"Despite this disparity, we offered to clear 7 flights a week for Lufthansa which was not accepted by them. Negotiations continue," the DGCA mentioned.

Ultimately, in October 2020, it was decided between India and Germany that Lufthansa will operate 10 weekly flights from India to Germany.

Germany had lifted all restrictions on the entry of travellers from India from September 19. While they require to be fully vaccinated with a WHO-approved jab for quarantine exemption and have a valid visa among other travel requirements, there is no restriction in terms of the purpose of visit.

Then Civil Aviation Minister Hardeep Singh Puri had said on Twitter on October 21, 2020: "Flights between India & Germany recommence under air bubble arrangement. Lufthansa will operate from Delhi (4 days), Mumbai (3 days) & Bengaluru (3 days). @airindiain will operate 5 weekly flights from Delhi & 2 every week from Bengaluru to Frankfurt."

(Image Courtesy - Flight Global)

Lufthansa also said it has agreed to lease four new Airbus A350-900 long-haul passenger jets, taking on newer planes left without homes as airlines restructure their balance sheets amid the coronavirus crisis. These four new planes will take its A350 fleet to 21 aircraft.

Airplanes are currently available at low lease rates as carriers review their portfolios, industry sources say.

Headquartered in Frankfurt, Lufthansa is one of the largest airlines in Europe. The carrier operates an extensive network of regional services within Germany and Europe as well as the Asia Pacific, Middle East, North America, Latin America and Africa via primary hubs at Frankfurt and Munich airports. Lufthansa utilises a large fleet of narrow and wide-body aircraft, as well as regional jet aircraft. A publicly listed company, Lufthansa is a founding member of Star Alliance.

(With inputs from PTI)

SpiceJet officials confirmed that the salary was paid on the last day of September, as was customary before COVID. It has also been revealed that the company has reverted to paying salaries in one lump sum rather than in two instalments. Each month on the 15th, the second instalment was due.

SpiceJet, by the way, has reduced employee salaries by 10% to 25% since April 2020. In November 2020, the partial salary cut was reversed by 50%. Employees in the lowest pay grades, on the other hand, were unaffected by the cuts, and their salaries were paid in full.

(Image Courtesy - The Flying Engineer)

SpiceJet had no choice but to announce temporary salary cuts in order to avoid layoffs. The airline company intended to return to the pre-COVID salary structure as soon as possible, but the second wave of COVID-19 caused the move to be postponed.

SpiceJet announced that it had implemented a new "interim fixed salary system" for captains and first officers, which had been paid on an hourly basis due to the pandemic.

According to the airline, pilot salaries will “significantly increase” under the new pay structure, and those who fly more than the required minimum hours will be paid overtime.

SpiceJet is also all set to resume Boeing-B-737 Max aircraft from the first week of October after a two-and-a-half-year long ban.

It has to be noted that recently, India's aviation regulator, Director General of Civil Aviation (DGCA), has permitted to restart of the B-737 Max aircraft in Indian skies. The airline company has sent 20 pilots for simulator compulsory training before resuming operations of Max aeroplanes.

On Tuesday, October 5, budget carrier AirAsia India announced that it had become the first Airbus operator in the world to launch Taxibot services with passengers on board. The move will aid AirAsia India in achieving sustainability and improving flight operations efficiency, according to the company.

In 2019, the GMR-run Delhi Airport became the first aviation facility in the world to introduce Taxibot operations.

Taxibot is a semi-robotic towbarless aircraft movement equipment for towing an aircraft from the terminal gate to the take-off point (taxi-out phase) and return it to the gate after landing (taxi-in phase) without utilising the aircraft engines. (Image Courtesy -TheNewsGuru)

Taxibot is a semi-robotic towbarless aircraft movement system that uses the aircraft engines to tow an aircraft from the terminal gate to the take-off point (taxi-out phase) and back to the gate after landing (taxi-in phase).

Taxibot uses a hybrid-electric engine to reduce aircraft fuel consumption, emissions, and noise levels at airports, as well as the risk of foreign object and jet blast damage.

Taxibot tractor was developed by the Lahav Division of Israel Aerospace Industries. The TaxiBot eliminates the use of airplane engines during taxi-in and until immediately before take-off during taxi-out, significantly reducing aircraft fuel usage and the risk of foreign object damage. The TaxiBot is controlled by the pilot from the cockpit using the regular pilot controls and has an 800-hp hybrid-electric engine.

The TaxiBot completed certification tests in July 2014, was approved for airport towing in November 2014. and had the first commercial flight dispatch-towed, Lufthansa LH140 from Frankfurt to Nuremberg, on November 25, 2014.

In a statement, AirAsia India said that the deployment of Taxibot is the latest in a series of digital and sustainability initiatives that enable the company to use innovative technology solutions to monitor, predict, and deliver operational efficiency.

Air India using Taxibot on A320 aircraft. (Image Courtesy - Mumbai Mirror)

AirAsia India announced that it has teamed up with KSU Aviation, the Taxibot's exclusive operator in India, to complete the task. According to AirAsia India, the aircraft engineering modifications required routing more than 50 new wires inside the aircraft, the installation of relays in the avionics bay and a control panel in the cockpit, as well as a series of operational tests before certification.

"We're delighted to announce the initiation of TaxiBot operations towards enhancing sustainable aviation operations and leveraging technology to drive differentiation and operational efficiency. It is a proud moment for AirAsia India to be the first Airbus operator in the world to start TaxiBot services with passengers onboard with a modified Airbus fleet. We look forward to continuing to explore and undertake new and inspiring possibilities in aviation and lead the way forward." Sunil Bhaskaran, MD and CEO, AirAsia India.

Taxibot is proclaimed as the green revolution in aeroplane taxiing, helping enhance fuel efficiency and predictive maintenance and services.

"We are very happy to have AirAsia as our partner in our endeavour to significantly reduce carbon emission at Delhi Airport. Delhi Airport is one of the leading airports globally in adopting environmental sustainability solutions. Adoption of TaxiBot has been a significant initiative by DIAL to reduce carbon emissions, as part of its objective of becoming a 'net-zero carbon emission airport' by 2030."Videh Kumar Jaipuriar, CEO, DIAL

According to KSU, the present fleet of Taxibot deployed at Indian airports has completed around 1,500 Taxiboting operations and an additional 40 Taxibot are slated to be operational at the country's various airports, a major force multiplier towards reducing ground carbon emission in the world's leading aviation market.

KSU is delighted to partner with Air Asia India for leveraging the world's only certified alternate taxiing technology and innovation being made available to Airbus-operated Indian Carrier, AirAsia India, the release quoted a KSU spokesperson as saying.

"Air Asia India is setting a new industry's first benchmark towards successful implementation of reducing ground carbon emission with the introduction of the TaxiBot Program as part of its regular fleet operations, leading to the implementation of a feasible solution for reducing aviation industry's carbon footprint."Spokesperson, KSU Aviation

Delhi airport has emerged as a trendsetter in alternate taxing solutions by using Taxibots as part of its regular operations. Since then, the airport has witnessed 1,500 movements of sustainable taxiing of aircraft in September, which has helped in reducing both carbon emission as well as jet fuel, AirAsia India said.

Air India on October 15, 2019, became the first airline in the world to use a Taxibot on an A320 aircraft with passengers on board.

(Image Courtesy - AirAsia)

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.

On 29-Dec-2020, AirAsia Group and TATA Group signed an agreement for TATA Group to purchase 490 million AirAsia India shares from AirAsia Group for USD37.7 million. This will increase TATA Group's stake in AirAsia India by 32.67% to 83.67% and reduce AirAsia Group's stake in the LCC from 49% to 16.33%.