India needs a global aviation hub airport for international flights

Jinen Gada

24 Aug 2022

Civil Aviation Minister Jyotiraditya Scindia said on Tuesday, August 23 that India needed to develop an airport which would be a global hub for international flights.

More wide-body aircraft, anchor airlines at particular airports as well as synergy between domestic and international departures are required to have an international aviation hub in India.

ALSO READ - Scindia wants Indian carriers to buy more widebodied aircraft

An international aviation hub or a hub airport is the name given to an airport that airlines use outside their headquarters to concentrate passenger traffic and flight operations. Hubs are used as a transfer point to get passengers to their final destination.

The country's civil aviation sector is on the recovery path after being hit hard by the coronavirus pandemic.

The more places a hub airport provides access to, the higher the flight frequency at the hub which also leads to a higher footfall of passengers.

For that to happen, many things need to come together. There should be anchor airlines at a particular airport. Their fleet must consist of wide-bodied aircraft to transfer passengers internationally.

Also, there should be synergy between domestic and international departures. So taking one or two airports and creating a model of these, would be the first step. It's a work in progress.

Indian aviation is in the growth stage as it approaches maturity.

Some airports such as Delhi’s Indira Gandhi International Airport had cumbersome transfers between domestic and international terminals which airlines had flagged as a roadblock to developing an airport as a hub.

ALSO READ - Scindia expects air passenger traffic to reach 40 crores by FY24

"We had 140 million domestic travelers and 60 million international travelers pre-Covid in 2020. That is 200 million, which is expected to go to 400 million travelers in the future so there's an opportunity beckoning at our door to make sure that we have an International hub here in India."Jyotiraditya ScindiaScindia wants Indian carriers to buy more widebodied aircraft

Several countries that boast of hub airports, also have anchor airlines that bring a large chunk of traffic to them such as the United Arab Emirates two flag carriers Emirates and Etihad which bring traffic to Dubai and Abu Dhabi respectively, or Turkey’s Turkish Airlines.

India is also projected to have a total of 220 airports including several heliports and aerodromes by 2026. The country's civil aviation sector is on the recovery path after being hit by the coronavirus pandemic.

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Aviation and defence ministries to work parallelly for civil and defence aerospace industries

Jinen Gada

24 Aug 2022

The Ministry of Civil Aviation is engaging with the Ministry of Defense for greater convergence between civil and defence aerospace industries including making available business accrued through defence offsets to civilian maintenance, repair and overhaul or MRO sector.

Convergence between civil and defence aerospace industries is a norm globally and offshoots from one directly affect the other.

In talks with defence ministry for convergence between civil and defence aerospace industries: Scindia.

This could be very beneficial, as under the defence offset obligations, foreign vendors who secure defence contracts from India worth Rs 2,000 crore or more need to plough back a minimum of 30% of the contract value through investments back into the Indian defence industry. Such investments could be through orders, transfer of technology and investments in research and development.

ALSO READ - Safran to establish an MRO facility worth USD 150 million in Hyderabad

In July, French aerospace and defence multinational company Safran inaugurated three new production plants in India and announced the setting up of a new engine MRO facility, which will start operations by 2025, with a total investment of more than USD 200 million.

ALSO READ - Safran to set up a MRO facility for LEAP commercial aircraft engines in India

GST has a big impact on the MRO industry.

The investments included a new facility for Safran HAL Aircraft Engines, a 50/50 joint venture between Safran Aircraft Engines and government-owned defence public sector company Hindustan Aeronautics Ltd in Bengaluru.

ALSO READ - HAL estimates Safran MoU to generate USD 1 billion revenue in next 5 years

The 36 Dassault Rafale fighter aircraft acquired by India recently run on engines developed by Safran.

Industry experts also said that though India is sufficient in civil aircraft airframe MRO business, but is lacking in aircraft component (engine) MRO business.

"More than 65% of the total maintenance expenditure of an airline is focused on engines and developing an engine MRO business requires investment into land, facility equipment, and tooling."Ashmita Sethi, President and Country Head, Pratt & Whitney

With inputs from ET.

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Tata Sons likely to merge the losses of AirAsia India with Air India before the possible merger

Radhika Bansal

24 Aug 2022

Tata Sons will likely have to make a provision of INR 2,600 crore as accumulated losses for AirAsia India, which it proposes to absorb into Air India and merge with no-frills unit Air India Express, said people with knowledge of the matter.

An auditor's report has cast doubt on AirAsia India as a "going concern," stating that its net worth has been fully eroded and its liabilities exceed current assets.

AirAsia India was launched in 2014 as a joint venture between the Tata Group and AirAsia Investment Limited. The Tatas began with a 51% equity share in the company, which was further raised to 83.67% in 2020.

Tata Sons likely to merge the losses of AirAsia India with Air India before the possible merger

ALSO READ - Air India gets CCI’s approval to acquire the entire stake in AirAsia India

Tata-owned Air India proposes to acquire 100% of AirAsia India and has sought the Competition Commission of India's approval. Tata Sons owns 83.67% of the no-frills carrier and the remaining 16.33% is held by AirAsia Investment Ltd, part of Malaysia's AirAsia Group. Concept of 'Going Concern' AirAsia India, which was already reeling under losses, was badly hit by the pandemic, officials said.

Tata Sons did not comment. Officials close to the development said that no decision has been taken on whether the write-off will be included in the balance sheet of Tata Sons or Air India.

"In mergers between two group companies - AirAsia India with Air India Express - if one of the group companies' liabilities exceeds its assets, the group has to make provisions for impairment in the value of investments if it's permanent, as per applicable accounting standards. In the case of the AirAsia India merger, additional impairment provisions, if any, will be restricted to the extent of the impairment provisions not already accounted for in the latest reported standalone financial statements of Tata Sons." Uday Ved, Partner at Global Tax Practice Group - KNAV

Air India is a full-service airline operating in the domestic and international markets. Air India Express focuses on short-haul international operations, especially to the Middle East from south India and elsewhere. Tata Group has started work on the merger of AirAsia India with Air India Express, said top executives close to the development.

"The 'going concern' concept is a key assumption under generally accepted accounting principles and it describes a business that is expected to operate for the foreseeable future. A company needs to have a concrete plan to improve business outlook and mitigate the going concern assumption when it is in an adverse situation."Paras Savla, Partner at Boutique Audit and Consulting Firm - KPB & Associates

AirAsia India has had a rough couple of years due to the pandemic, with its loss increasing by 42% on a year-on-year basis to almost USD 275 million. Its revenue grew by nearly 39% to USD 238 million, but a 67% hike in aviation turbine fuel and a weakening Indian rupee against the US dollar impacted the overall numbers.

ALSO READ - AirAsia India records elevated losses in FY22

AirAsia India has had a rough couple of years due to the pandemic, with its loss increasing by 42% on a year-on-year basis to almost USD 275 million.

Last year, AirAsia India posted an annual loss of USD 193 million, almost double the previous year, and a revenue of USD 171 million. It has been shrinking its operations and returned seven Airbus A320 planes to AirAsia Berhad and currently has a fleet of 26 A320s.

Autos-to-steel conglomerate Tata bought state-run carrier Air India in a USD 2.4 billion equity and debt deal earlier this year, regaining ownership of what used to be India's flagship carrier after nearly 70 years.

The deal included three entities - full-service carrier Air India, its low-cost arm Air India Express, and AI SATS, which provides ground-handling and cargo services.

(With Inputs from The Economic Times)

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Qatar Airways becomes the global airline partner of the Ironman triathlon series

Radhika Bansal

23 Aug 2022

Qatar Airways and Ironman have entered a long-term global partnership, making Qatar Airways the airline partner of the Global Ironman series and Ironman 70.3 series through the 2025 season. 

In addition, Qatar Airways will be the title partner of the 2022 editions of Ironman 70.3 Sunshine Coast, Ironman Maryland, Ironman 70.3 Washington and Ironman 70.3 Western Sydney triathlons and will connect athletes, officials, and fans via Brisbane Airport, Washington Dulles International Airport, Seattle-Tacoma International Airport, and Sydney Airport, respectively.

https://twitter.com/qatarairways/status/1561662433688682496

Qatar Tourism will also be promoted to athletes and spectators across the global Ironman series as part of the partnership.

As part of the partnership, athletes travelling to Ironman or Ironman 70.3 events using Qatar Airways will have access to a range of benefits, such as promotional fares for themselves and family members, and for those travelling to or via Qatar, additional special offers to Doha attractions are also included.

“Our partnership with The Ironman Group is a natural fit for our brand, where human endeavour proves that anything is possible. We admire the relentless effort and dedication of the athletes, attributes we strive to reflect in the way we serve our customers. Ironman races are hosted in different cities across the world, making our global network the perfect medium through which to connect endurance sports enthusiasts, athletes, supporters, and officials.”Akbar al-Baker, Qatar Airways Group Chief Executive and Qatar Tourism Chairman

Furthermore, athletes who have completed an Ironman or an Ironman 70.3 event within the last 12 months will also be eligible for other unique benefits. 

“Providing our athletes with an unmatched race experience is at the core of what we do, so we’re thrilled to partner with an airline that reflects our customer centric approach and is committed to the highest standards in everything they do. Our Ironman events have long brought together different communities and cultures through their love of endurance sport, so how better to continue doing this than with the world’s fastest growing airline. This is the beginning of an exciting partnership for both of us, our athletes, and future athletes and supporters who we hope to welcome at an event in the near future.”Andrew Messick, President and Chief Executive Officer for The Ironman Group

The partnership was marked at the 3-2-1 Qatar Olympic and Sports Museum in Doha, Qatar. Along with leadership from both organisations, Lulwa al-Marri – the first Qatari female athlete to complete a full-distance Ironman race, was in attendance. For several years, many Qatari athletes have participated in and completed different Ironman triathlons across the world.

Ironman triathlons are a series of full-distance races composed of a 2.4-mile swim, a 112-mile bicycle ride, and a 26.2-mile run, in that order.

Since its debut in 1978, Ironman events have become globally known for being the world’s most challenging single-day sporting competitions. Ironman triathlons are a series of full-distance races composed of a 2.4-mile swim, a 112-mile bicycle ride, and a 26.2-mile run, in that order.

Similar to the Ironman triathlons, the Ironman 70.3 triathlons maintain the structure and format of the original triathlon series but with half of each distance, featuring a 1.2-mile swim, 56-mile bike, and 13.1-mile run.

Qatar Airways currently flies to more than 150 destinations worldwide.

Qatar Airways currently flies to more than 150 destinations worldwide. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).

The airline’s hub, Hamad International Airport (HIA), was also recently recognised as the ‘Best Airport in the World 2021’, ranking at number one in the Skytrax World Airport Awards 2021.

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India close to procuring the $3 Billion "Predator" Drones Deal With US | Here's what we know

Prashant-prabhakar

23 Aug 2022

In a military negotiation which was earlier put on hold, India is now said to be in advanced stages of the same discussion over the procurement of 30 MQ-9B Predator armed drones at a cost of over USD 3 billion to crank up its overall surveillance apparatus along the Line of Actual Control (LAC) with China and in the Indian Ocean.

Verifiable sources from the defence establishment have said that talks between New Delhi and Washington are underway for the government-to-government procurement of the drones manufactured by US defence major General Atomics, and rubbished reports stating they were off the table.

We understand that the MQ-9B acquisition programme is at an advanced stage of discussion between the US and Indian governments. Any questions on those discussions should be addressed specifically to the respective governments. From a company perspective, General Atomics is ready to support India and values our long-time relationshipDr Vivek Lall, the Chief Executive for the General Atomics Global Corporation

Dr. Vivek Lall | The Economic Times

The General Atomics MQ-9 Predator

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Developed by General Atomics Aeronautical Systems (GA-ASI) primarily for the United States Air Force (USAF), the General Atomics MQ-9 Reaper (also called the Predator B) is an unmanned aerial vehicle (UAV) capable of remotely controlled or autonomous flight operations.

 The MQ-9 and other UAVs are referred to as Remotely Piloted Vehicles/Aircraft (RPV/RPA) by the USAF to indicate their human ground controllers and are the first hunter-killer UAV designed for long-endurance, high-altitude surveillance.

The MQ-9 is a larger, heavier, and more capable aircraft than the earlier General Atomics MQ-1 Predator and can be controlled by the same ground systems used to control MQ-1s.

MQ-1 Predator | defensenews

The Reaper is designed to carry 15 times more ordnance payload and cruise at about three times the speed of the MQ-1. The aircraft is monitored and controlled by aircrew in the Ground Control Station (GCS), including weapons employment.

The Predator and Reaper were designed for military operations and not intended to operate among crowded airline traffic. The aircraft typically lack systems capable of complying with FAA See-And-Avoid regulations.

Specifications (MQ-9A)

Length6 ft 1 inWingspan65 ft 7 inHeight12 ft 6 in Max takeoff weight10,494 lb Cruise speed194 mphRange1,200 mi Endurance14 hours fully loadedOperational altitude25,000 ftWikipedia

Our Indian customer has been impressed by the MQ-9's over-the-horizon ISR- intelligence, surveillance and reconnaissance, support for surface units and Indian warships, as well as the exceptional endurance and operational availability of the platformLall said

According to General Motors, the MQ-9Bs are designed to not only meet the standards of NATO but also to comply with civil airspace requirements in the US and around the world.

Reportedly. the procurement proposal has been moved by the Indian Navy and all three services are likely to get 10 drones each.

SOURCE(s)

COVER: General Atomics Aeronautical Systems

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Go First IPO set to expire soon

Radhika Bansal

23 Aug 2022

Go First is likely to see its long-planned initial public offering (IPO) delayed once again, as a document it released to lure potential new investors is set to expire in the coming days and a launch date for the IPO has yet to be announced.

ALSO READ - Go First files for IPO at INR 3,600 crore valuation

The IPO had intended to raise INR 36 billion (3600 crores) to reduce debt, repay lessors, and boost operations in India and internationally. It was reported in May that parent Wadia Group was aiming for the airline to go public in early July.

Go First IPO is set to expire soon

ALSO READ - Go First plans to launch the IPO by July after months of deliberation; mulls inducting more aircraft

This was after the Securities and Exchange Board of India (SEBI) last summer gave Go Airlines Private Limited the green light for its debut on the Mumbai Stock Exchange. The carrier has been planning a listing since at least 2015 when it was known as GoAir.

A draft red herring prospectus (DRHP) that Go First released to introduce itself to investors will now expire on August 26.

A public issue or rights issue needs to be opened within 12 months of the date of issuance of observations

The company has not announced a date for the launch of the IPO as of August 22, the business news publication Mint reported, and it will need to refile its IPO papers with the SEBI if it fails to do so.

A public issue or rights issue needs to be opened within 12 months of the date of issuance of observations, according to SEBI regulations. This period was extended by six months during the pandemic, but no longer.

Go First is one of 27 companies in India that have filed their prospectuses with the board but whose applications will also expire by the end of 2022 unless they kickstart the process.

Go First has also grounded more than a fifth of its fleet due to delayed deliveries of aircraft engines by Pratt & Whitney

“We are witnessing a considerable gap in the pace at which DRHPs are being filed versus the rate at which IPOs are being launched. Some DRHPs filed by the companies will expire soon, so they will need to look to refile them,” said an investment banker.

ALSO READ - Go First grounds over a fifth of its fleet due to delayed deliveries of engines by Pratt & Whitney

Go First has also grounded more than a fifth of its fleet due to delayed deliveries of aircraft engines by Pratt & Whitney. The airline has grounded about a dozen of its 57 planes for weeks as it awaits delivery of the upgraded versions of the PW1100G geared turbofan engines which power the A320neo aircraft.

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