India to update its Sukhoi Su-30MKI fighter fleet with a $4 billion plan

Sakshi Jain

27 Jan 2023

Hindustan Aeronautics Limited (HAL) will ask the Indian Ministry of Defense for $4 billion to update the fleet of Sukhoi Su-30MKI fighter jets.

The upgrade, known as Super Sukhoi, had a 2021 release date. But since Russia's full-scale invasion of Ukraine began, it has been in limbo.

The upgrade to "Super Sukhoi" was planned to be released in 2021

According to various Indian news portals, the Indian government is now anticipated to approve a revised improvement programme. According to earlier reports, the proposal was changed to emphasise greater employment in the domestic aerospace industry.

About 150 fighter jets would upgrade to the "Super Sukhoi" fifth-generation fighter jet as a HAL nodal agency, greatly enhancing the Indian Air Force's fighter capacity.

In order to complete the Sukhoi-30 MK-I's equipment and systems, Hindustan Aeronautics Limited and the Indian Air Force will work jointly. 150 aircraft will then be modernised.

HAL and the IAF will collaborate to complete the Sukhoi-30 MK-I's equipment and systems

As Sukhoi-30 MKIs are joint products of India and Russia, the "Super Sukhoi" programme has received Russian approval. The Sukhoi will be upgraded using several Russian components and parts. There will be a contemporary cockpit on the "Super Sukhoi." Technically speaking, 150 fighter aircraft are now interoperable with fifth-generation fifty planes thanks to the upgrade's significant avionics and sensor component.

The Upgrades for “Super Sukhoi”

The avionics and sensor systems aboard the jets are the main targets of the enhancements. Notably, an Uttam MK3 Active Electronically Scanned Array (AESA) radar produced by HAL will soon replace the slotted planar array radar, which was developed in the 1980s.

A new locally produced Infrared Search and Track (IRST) system will be used in conjunction with the radar, albeit its benefits over the original OLS-30 system have not yet been revealed.

Along with a new Digital Flight Control Computer (DFCC), the cockpit will also be updated with new displays. The capability of the weapons to carry a wider variety of air-to-air missiles, cruise missiles, and sensor pods made in the country is also to be updated.

The Planned Upgrades for Sukhoi Su30-MKI

Other long-range missiles with infrared homing may also be included in the Super Sukhoi's arsenal. Active radar homing medium range 100 km is another option for medium-range missiles. Other 80 km medium-range missiles can be added in addition to this.

The electronics on the Super Sukhoi will be upgraded, and the Super Sukhoi will have more weapon loads. The Super Sukhoi will have the same engine as the FGFA, extending its lifespan.

Testing & Roll Out

The Sukhoi Su-30MKI is a fourth-generation fighter aircraft created as a Sukhoi Su-30 derivative specifically for India. The Sukhoi Su-30 is a development of the Su-27 from the Soviet era.

The Su-30MKI has continued to be the Indian Air Force's most numerous combat aircraft when deliveries ceased in 2018, serving alongside smaller fleets of Mirage 2000, MiG-29, and MiG-21 aircraft.

Even when deliveries of the Su-30MKI ended in 2018, it remained the Indian Air Force's most numerous combat aircraft

The upgrading programme, which is scheduled to begin in 2024 and deliver the first updated aircraft by 2025, is projected to affect 150 out of the 260 Su-30MKIs operated by the Indian Air Force.

In 2024, HAL will start testing a number of the Super Sukhoi program's components. The Super Sukhoi program's prototypes will introduce new systems gradually, with full-scale modernisation beginning in 2027–28.

The Air Force Sukhoi-30 MK-I's software is degrading so quickly that an upgrade is now required to maintain it useful in upcoming air conflicts. By 2025, the Air Force anticipates having the first Super Sukhoi aircraft in service.

Source: The Defence Times

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Air India introduces a Staff Stock Option Scheme

Sakshi Jain

27 Jan 2023

Air India introduces a Staff Stock Option Scheme, granting them about 3% of the company's equity share capital which is about 98 crore shares.

The Stock Option Scheme has been rolled out in an effort to motivate employees and boost performance. According to a document, the shares are also being made available to the permanent employees of Air India Express as part of the Employees' Share Benefit (ESB) Scheme 2022. 

A total of 8,000 employees will benefit from the initiative to boost performance and provide incentives.

The plan to increase performance and offer rewards will benefit 8,000 staff in total

“In accordance with the share purchase agreement signed as part of the disinvestment process, Air India has initiated the Employee Share Benefit Scheme for eligible employees who were in service with the airline on the date of privatisation.”

“We will be working with the relevant employees to help them understand the long-term benefits and avail of the same.”

–Spokesperson, Air India, quoted by ET

The former national carrier, which Tata Group purchased last year, will be the second organisation in the salt-to-steel conglomerate to introduce a Stock Option Scheme for staff members after Tata Motors did so in 2018.

Air India’s Stock Option Scheme 

According to the document sent to the staff, the price per share under the scheme for permanent employees will be 27 paise. According to a source cited by PTI, the sum is lower than the book value of 87–90 paise per share at the time of acquisition.

Also read: Tatas to announce ESOP plan for Air India employees

It is important to note that none of the company's employees will ever personally own any of the company's shares; instead, a trust will hold the shares. The scheme's implementation has been entrusted to SBI Caps Trustee Company Ltd.

No employee of the Company will ever personally own any of the Company's Shares; rather, the Shares will be held by a Trust

The company has given the trust permission to provide ESB benefits to qualified employees on up to 3% of the company shares that Talace purchased, or 97,99,56,600, from time to time, in one or more tranches, and for no cash consideration.

Upon payment of the aggregate exercise price along with any applicable taxes and fees, the trust will hold the ESB shares to provide the ESB benefit to the qualified employees. Air India, Air India Express, and the government's 50% stake in Air India SATS Airport Services Pvt Ltd. were all acquired by Talace, a division of Tata Sons.

Every year by July 15th, the Fair Market Value (FMV) will be determined, and employees will be allowed to cash in their shares.

Any qualified employee who retires on or after January 27, 2022, will be regarded as qualified and entitled to benefits in line with and subject to the rules of this plan.

ESOP (Employee Stock Ownership Plan) in other airlines

IndiGo and SpiceJet, two rival airlines to Air India, have ESOP plans in place as well. When IndiGo, a low-cost airline, first began to issue shares to its senior executives, most of them became millionaires when IndiGo went public in 2015 at a price of Rs 765 per share.

Air India's competitors, IndiGo and SpiceJet, also have ESOP schemes in place

Akasa Air, which was financed by the late businessman Rakesh Jhunjhunwala, is also offering stock options to recruit employees.

Source: ET

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Air India to seal half of order for 495 jets with Boeing soon

Radhika Bansal

27 Jan 2023

Air India will on Friday, January 27 seal half of an order worth billions of dollars for some 495 jets with Boeing and engine suppliers General Electric and CFM International, two industry sources said, as its new owner seeks to revive the airline and compete with much larger rivals.

After months of closely-guarded, tough negotiations, Air India is set to place an order for 190 Boeing 737 MAX narrowbody planes as well as some 20 Boeing 787s and 10 Boeing 777X on a day marking one year since Tata Group took control of the former state-run carrier, the sources told Reuters.

ALSO READ – Air India jumbo aircraft order to include B737 MAX and B787 Dreamliner

The second half of the order, which industry sources have told Reuters includes around 235 Airbus single-aisle jets and about 40 Airbus A350 widebody aircraft, is expected to be formally wrapped up over the coming days.

ALSO READ - Airbus likely to get 235 single-aisle jet orders out of 500 from Air India

Air India is likely to seal half of an order for some 495 jets with Boeing today

Senior Boeing, GE and CFM officials are expected in India to mark the deal on Friday, January 27. Manufacturers Boeing and Airbus, as well as CFM's joint venture partners GE and Safran, declined comment. Air India did not respond to a request for comment.

Despite earlier expectations of a single coordinated announcement, it remains unclear when either deal may be publicly disclosed especially with the Aero India air show looming in February when deals like this are usually revealed. It was reported last month Air India was closing in on a deal for about 500 jets.

ALSO READ – Air India close to placing landmark orders for 500 jetliners

The order, once finalised, aims to put Air India in the league of large global airlines and make it an influential customer for planemakers and suppliers at a time when its home market is seeing a strong post-Covid travel surge.

Under its new owners, Air India is looking to restore its reputation at home and overseas as a storied carrier with impeccable service and world-class planes.

Domestic passenger air traffic in India grew 47% in 2022 from a year ago, government data showed. Analysts caution the airline faces intense competition given the connectivity carved out by local and international rivals.

India, which is set to overtake China as the world's most populous country, has a large, under-served air travel market dominated by budget carrier IndiGo. The bulk of India's outbound passenger traffic, however, is carried by Middle Eastern airlines like Emirates and Qatar Airways.

Under its new owners, Air India is looking to restore its reputation at home and overseas as a storied carrier with impeccable service and world-class planes. It has put back in service nearly 20 aircraft that had been grounded for years due to lack of parts and money. The airline has also said it will spend over USD 400 million to refurbish its entire legacy wide-body fleet of 27 Boeing 787-8s and 13 B777 aircraft.

ALSO READ - Air India to refurbish its wide-body aircraft interiors by investing USD 400 million

It was reported last month Air India was closing in on a deal for about 500 jets.

The aim is to corner 30% of the domestic air travel market over the next five years thus narrowing the gap with market leader IndiGo. It also wants to increase by "multiples" its current share of international travel, the airline's new chief executive Campbell Wilson previously said.

Tata's four airlines, including two budget carriers, Air India and Vistara its joint venture with Singapore Airlines, have a combined market share of 24%.

Analysts have said Air India can claw back some passengers from rival Gulf carriers but not before it matches their quality of fleet and service. Nor will the domestic battle with IndiGo happen without tough competition from a carrier that continues to expand.

(With Inputs from Reuters)

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Six Unions appealed DGCA to lift the Pilot's Licence Suspension, in the AI's urination incident

Sakshi Jain

25 Jan 2023

The Captain of Air India's flight from New York to Delhi had his licence suspended, and a joint forum of Six Unions appealed to the DGCA to lift the suspension.

There are Six Unions represented by the forum: the Indian Pilots Guild, the Indian Commercial Pilots Association, the Air Corporation Employees Union, the Air India Employees Union, the All India Cabin Crew Association, and the Airline Pilots Association of India.

The DGCA banned the PIC's license for 3 months, fined Air India INR 30 lakh, and awarded INR 3 lakh to the director of the airline's in-flight services

In relation to the urinating incident that occurred on November 26, 2022, the Directorate General of Civil Aviation this week banned the pilot's licence for three months, fined Air India INR 30 lakh, and awarded INR 3 lakh to the director of the airline's in-flight services.

Also read: DGCA fines Air India INR 30 lakh in urination case, pilot suspended for 3 months

The forum stated in a letter to the regulator that while there is a groundswell of "public pressure" for action, given the seriousness of the complainant's allegations, it is necessary to evaluate the same in light of the Pilot-in-Command's duties and responsibilities, among other things, and to evaluate the facts that were presented to the pilots and crew on the aforementioned flight.

The forum requested that the DGCA "withdraw the harsh punishment and suspension of the PIC," citing a number of factors.

The forum requested that the DGCA "withdraw the harsh punishment and suspension of the PIC"

The letter also arrives on the same day that Air India announced that the internal investigation into the case has come to a conclusion and that it will support the flight's PIC in an appeal against the DGCA's suspension of his licence since the airline views the action as "excessive."

Also read: Air India pilots’ body considering legal action over pilot suspension

The letter claims that the PIC has administrative and judicial authority over the entire crew. In this context, it was said that the PIC had authorised all reports and had given the cabin supervisor the go-ahead to immediately forward all reports to the firm and its senior officials after landing in order to discuss the following course of action.

The PIC and his crew agreed that the passenger in seat 8C Mishra was not unruly and could not be categorised as such, as per the letter, given the real circumstances and the lack of any eyewitnesses.

The forum added that it had learned that the dispute had been resolved peacefully and independently by both sides.

“As per the CAR (Civil Aviation Requirements), the company's senior officers had 12 hours to study all reports and report the matter ahead to the DGCA, and many more days to discuss the issue to file the FIR if they felt it was required.”

–Forum

The forum claims that the DGCA's news release also refers to the accused's "alleged violation," which by itself suggests that there is some uncertainty (legal or otherwise) as to whether the individual committed the act in question or not, or whether it has not yet been determined and confirmed. Police have detained Shankar Mishra, the alleged offender.

Police have detained Shankar Mishra, the alleged offender

The PIC, the cabin supervisor, and the crew on board AI-102 could not have branded Mishra as an unruly passenger, the forum wrote in the letter, even though it did not condone the alleged act due to a lack of evidence and eyewitnesses, numerous conflicting accounts heard on board, and Mishra's polite and cooperative demeanour. It further stated that they had no need to constrain (Mishra) because he lacked any such characteristics.

"We respectfully advise that the implications of this order on the pilots, cabin crew and staff of all airlines nationwide are vast and will threaten the very fabric of civil aviation. This order must be crafted as a precedent-making opportunity."

“Unfortunately, based on this order, crew and staff in uniform are henceforth expected to rigorously engage in warning, restraining and handing over likely innocent passengers merely based on 'allegations of any nature' or divert aircraft for the same purposes, rather than risk suspension.”

–Forum

Source: ET

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Air India alters its in-flight alcohol policy amid recent events

Sakshi Jain

25 Jan 2023

Air India altered its in-flight alcohol service policy in response to recent incidents of unruly passenger behaviour.

Air India has instructed the cabin crew to tactfully serve further alcohol if needed. The amended policy states that passengers should not be allowed to consume alcohol unless it is provided by the cabin staff and that the crew should be alert to passengers who may be consuming their own alcohol.

The DGCA has recently imposed penalties on the Tata group-owned airline due to the unruly behaviour of passengers on two overseas flights and reporting errors. It was not possible to determine the precise changes in the updated policy right away.

Air India has instructed the cabin crew to tactfully serve further alcohol if needed

“Service of alcoholic beverages must be carried out in a reasonable and safe manner. This includes tactfully refusing to (further) serve a guest alcohol.”

–As Per Policy

An Air India spokesperson said in a statement that the airline had evaluated its current in-flight alcohol serving policy, taking into account best practices from other airlines as well as recommendations from the National Restaurant Association (NRA) of the United States. 

“These were largely in line with Air India's existing practice, though some adjustments have been made for better clarity, and NRA's Traffic Light system included to help crew recognise and manage possible cases of intoxication.”

“The new policy has now been promulgated to crew and included in training curricula. Air India remains committed to the safety and well-being of our passengers and cabin crew, including but not limited to the responsible service of alcohol.”

–Spokesperson, Air India

The new policy has now been promulgated to the crew and included in training curricula: AI Spokesperson

For the way it handled the disruptive passenger who urinated on an elderly woman on a New York-Delhi aircraft, Air India was fined Rs 30 lakh (about $37,000). Due to his failure to perform his duties, the Pilot-In-Command was also placed on a three-month suspension. The Director-in-Flight services of AI have been penalised with a fine of Rs 3 lakh.

Also read: DGCA fines Air India INR 30 lakh in urination case, pilot suspended for 3 months

Air India said the matter should have been classified and reported as unruly behaviour by a passenger, but the flight crew and ground staff did not report it as such.

As the airline views the move as "excessive," it has stated that it will support the flight's pilot-in-command in his appeal against the DGCA's suspension of his licence.

Also read: Air India pilots’ body considering legal action over pilot suspension

Air India has stated that it will support the flight's Captain in his appeal against the DGCA's suspension of his licence

“Air India wishes to acknowledge the good faith efforts made by the crew to handle the situation effectively in real-time when not all facts were available," it said in a statement, adding that it deemed "the licence suspension of the commander excessive and will be assisting him with an appeal.

The airline watchdog reported two mishaps on the trip between Paris and New Delhi in a statement. On Tuesday, January 24, the DGCA fined Air India 10 lakh for failing to report these two instances of passenger misbehaviour on an AI-142 aircraft from Paris to New Delhi on December 6 of last year.

Also read: Air India passenger incident: What? How? When?

In one incident, a passenger was observed smoking in the restroom while intoxicated and failing to follow the crew's directions.

Another passenger allegedly relieved himself on a vacant seat and blanket of a fellow female passenger when she went to the lavatory. 

The DGCA claimed it gave the Accountable Manager of Air India a show-cause notice asking them to explain why they should not be subject to enforcement action for failing to uphold regulatory requirements.

Source: Business Standard

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Jet Airways lenders file appeal to NCLT against Jalan-Kalrock Consortium

Sakshi Jain

25 Jan 2023

Jet Airways lenders filed an appeal before the NCLAT against the Jalan-Kalrock Consortium's resolution plans on Tuesday, January 24.

Lenders of Jet Airways have requested a stay of the National Company Law Tribunal's (NCLT) approval of the sale of Jet Airways to the Jalan-Kalrock Consortium a few days after the NCLT issued its approval. On Monday, January 23, they contacted the NCLAT, saying that the winning bidder had not met certain previous conditions.

A few days after the NCLT approved the sale of Jet Airways to the Jalan-Kalrock Consortium, the lenders of Jet Airways asked for a stay of the NCLT's approval

About 10 days after NCLT's permission, the lenders appealed to the appellate bankruptcy court, asking for a delay on the transfer of the carrier's ownership to JKC, according to two people with knowledge of the development who was quoted by Economic Times.

“The lenders want the plan to be circled back to the Committee of Creditors (CoC) for fresh consideration.”

–Sources

The NCLT approved Jalan-Kalrock’s motion on January 13 to carry out its resolution plan for Jet Airways. Funding for the grounded airline's resuscitation was allowed by NCLT.

“It goes without saying that the plan approved by this tribunal has to be implemented without any modification much less than on the satisfaction of any other undertaking. And thus, the effective date and completion date of the condition precedent under the plan shall have to be read as May 20, 2022.”

–NCLT Order

It's important to note that the Jalan-Kalrock Consortium is currently involved in a separate legal dispute over a Rs 250 billion payment to former Jet Airways employees as the lenders to the grounded carrier have filed the NCLAT at this time.

If a senior banker is to be believed, the resolution plan cannot be put into action unless the DGCA approves parking slots and the acquisition of planes. "If this approval does not come now, we don't see how the company will start operations," the person told ET.

The DGCA's approval of parking spaces and the purchase of planes is required before the resolution plan can be implemented: A Senior Banker

Second, the majority of the lender payments are postponed. The company will pay the upfront sum, but the banker noted that if activities do not begin when we transfer the company to the successful bidder, they could not have the cash flow to pay the deferred amount.

In April 2019, Jet Airways ceased operations as a result of a financial issue. The airline thereafter went through an Insolvency and Bankruptcy Code (IBC) resolution process.

Jet's CoC approved the revival plan that the consortium had filed in October 2020. In June 2021, the NCLT approved the strategy.

In October 2022, the consortium filed a petition with the tribunal asking for confirmation subject to the satisfaction of five requirements: the approval of the Air Operator Certificate, the submission of a business plan, the approval of slot allotment, the clearance of international traffic rights, and the demerger of the ground-handling company.

However, the lenders rejected the application and objected to the transfer of control, claiming that the prerequisite conditions had not been met.

The consortium suggested an overall infusion of Rs 1,375 crore as part of the rehabilitation plan, including Rs 900 crore for Capex and working capital. Additionally, Rs. 475 crores will be used to pay creditors' claims.

JKC proposed an overall infusion of Rs. 1,375 crores, of which Rs. 900 crores would be allocated for Capex and operating capital, as a part of the rehabilitation plan

A sticking point between the two parties has been an appellate tribunal ruling from last October regarding the payment of approximately Rs 200 crore in gratuity and provident funds to the airline's former employees. The Supreme Court is now debating the matter.

Source: ET

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