Indian carriers alarmed by Dubai's demand for 50,000 additional India-UAE seats on its aircraft

The UAE has stepped up pressure on the Indian government to increase seats between the two countries by another 50,000 per week, a development that has the potential to deal a lethal blow to airlines in India.

Dubai Civil Aviation Authority director-general Mohammed A Ahli has, in a letter to Union civil aviation minister Jyotiraditya Scindia, asked India to allow Amritsar, Tiruchirapalli, Coimbatore, Kannur, Goa, Bhubaneswar, Guwahati and Pune to become additional points of call for Dubai carriers. If approved, these would be among the most lucrative routes for the UAE carriers.

The Dubai civil aviation authority director-general requested Scindia to "consider calling for a bilateral meeting of our respective Civil Aviation Authorities to explore the possibility of enhancing capacity and services between Dubai and India further".

Not surprisingly, the Indian carriers are vehemently opposing more seats for the Gulf airlines. The UAE's flagship carrier, Emirates, already operates some of the most profitable routes between India and the UAE.

The airline presently operates from nine cities in India namely, Delhi, Mumbai, Ahmedabad, Bengaluru, Chennai, Hyderabad, Kochi, Kolkata, and Thiruvananthapuram.

The UAE has been mounting pressure on the Indian government to allow more flights from there. Earlier, Emirates President Tim Clark had brushed aside opposition from Indian carriers and asked the Indian government to open up more routes.

Emirates already operates some of the most profitable routes between India and the UAE.

In his letter to Scindia, Mohammed Ahli said the governments of India and UAE have taken a series of steps to further promote trade and commerce as well as cooperation in various areas, and "the Dubai-India air transport sector continues to be the cornerstone of all such businesses as well as in bringing together the people and exchange of ideas between our two nations."

Ahli added that in light of the aforementioned, an "agreement between our two States to update the entitlements of the respective designated airlines is of vital importance".

"As your esteemed offices will be aware, the current seat capacity of 65,200 seats was established vide the terms of the MoU between our respective Governments in 2014. In the past seven years not only has there been a very strong growth of passenger and freight between Dubai and India but also both our countries have been at the forefront of major developments in aviation - whether they be new state-of-the-art airports/terminals, new technology aircraft or other aviation-related technological advancements. With more than 1.4 million expatriate Indians in Dubai -- a number that has grown steadily over the past decade years -- as well as the ever-increasing trade and cultural exchanges between our two countries, we feel that the need for enhancing air connectivity between Dubai and India is stronger than ever before."Mohammed A Ahli, Director-General, Civil Aviation Authority, Dubai

The Dubai civil aviation authority director-general requested Scindia to "consider calling for a bilateral meeting of our respective Civil Aviation Authorities to explore the possibility of enhancing capacity and services between Dubai and India further".

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The Dubai official also expressed a "keen interest to serve other secondary cities in India where the Airports Authority of India has recently upgraded to international standards".

He said, "We would specifically like... enhancement of bilateral capacity between Dubai - India and vice versa by an additional 50,000 seats per week in each direction" and add "Amritsar, Tiruchirapalli, Coimbatore, Kannur, Goa, Bhubaneswar, Guwahati and Pune as additional points of call for Dubai carriers".

The Dubai official also expressed a "keen interest to serve other secondary cities in India where the Airports Authority of India has recently upgraded to international standards".

Seats are allocated between countries by giving bilateral rights that allow each other's airlines to operate services with a specific number of seats.

(With Inputs from The New Indian Express)

US aerospace major Boeing on Wednesday, August 24 pitched its F/A-18 Super Hornet as the best platform to address the Indian Navy's requirement for deck-based jets for aircraft carrier INS Vikrant.

Top officials of Boeing said the company anticipates USD 3.6 billion in economic impact to the Indian aerospace and defence industry over the next 10 years if F/A-18 Super Hornet Block III is selected.

ALSO READ - Boeing highlights F/A-18 Super Hornet Block III capabilities to Indian Navy

The Navy has shortlisted F/A-18 Super Hornet and Rafale M aircraft produced by the French aerospace major Dassault Aviation for procurement.

Boeing calls F/A-18 Super Hornet "the best deck-based aircraft" for the Indian Navy

Over four years back, the Indian Navy had initiated the process to acquire 57 multi-role combat aircraft for its aircraft carrier. The Navy is expected to choose between the F-18 and the French Rafale for the procurement of around 26 jets in the next few months. Of these, eight are to be twin-seat variants.

Planemaker Boeing plans to build on its existing investments in India in areas such as defence supply chains and manufacturing.

Boeing India President Salil Gupte said F/A-18 Super Hornet Block III would be the best deck-based aircraft for the Indian Navy and that the company plans to further strengthen its 'Make in India' initiatives, building on a successful track record of contributing to the country's indigenous aerospace and defence ecosystem.

The Navy has shortlisted F/A-18 Super Hornet and Rafale M aircraft produced by the French aerospace major Dassault Aviation for procurement.

He said Boeing anticipates USD 3.6 billion in economic impact on the Indian aerospace and defence industry over the next 10 years, with the F/A-18 Super Hornet as India's next carrier-based fighter.

Two US Navy F/A-18E Super Hornets completed multiple demonstrations at a naval facility in Goa recently. Gupte said the economic impact would be over and above Boeing's current offset obligations and plans in the country.

"As a trusted partner of India's aerospace sector for more than 75 years, Boeing has made significant investments in India's aerospace and defense industry and will continue to do so. Our investments span the entire spectrum of local manufacturing, engineering and R&D, and training and skilling to help build a robust 'Aatmanirbhar Bharat' in aerospace and defense.The selection of the F/A-18 Super Hornet for India will help boost investments in India's defense industry."Salil Gupte, President, Boeing India

Gupte said Boeing plans to build on its existing industrial base and strengthen its commitment to 'Aatmanirbhar Bharat' with continued investments in India across five pillars.

These include supply chain development and manufacturing; engineering and technology transfer; long-term support and training; infrastructure investments; and contributions of the 'Hornet team', comprising General Electric, Northrop Grumman and Raytheon.

"The Block III Super Hornet we are offering to the Indian Navy has the most advanced and critical capability. With its open architecture design and continuously evolving capability suite, the Super Hornet will outpace current threats, facilitate rapid capability insertion and has unmatched affordability.Boeing is making investments in advanced technologies and capabilities on our Block III Super Hornet and the F-15EX today so we will be ready for the future. The Indian Navy will benefit from these investments for decades to come.Designed from its inception as a carrier-based fighter for high-loading, high stress operations, the F/A-18E/F Super Hornet Block III will bring advanced, next-generation capabilities that will help the Indian Navy meet emerging and future threats."Steve Parker, Vice President and General Manager, Bombers and Fighters division, Boeing Defence, Space and Security

Parker said Boeing plans to manufacture some components of the F/A-18 Super Hornet Block III and did not rule out setting up an assembly line for the aircraft.

"In addition, along with the contributions to the Indian economy by our Hornet industry partners -- General Electric, Raytheon, Northrop Grumman, the Super Hornet will deliver significant benefits to India's defence sector."Alain Garcia, Vice President, India Business Development, Boeing Defense, Space and Security and Global Services

At present, the Indian Navy operates Russian-origin MiG-29K fighters from its sole aircraft carrier INS Vikramaditya. The Request For Information issued by the Navy for procurement of the deck-based fighter jets sought to know at what level of Transfer of Technology the companies are willing to share with India.

Boeing says it will also leverage investments made in the Boeing India Engineering & Technology Center (BIETC), which has a pool of 3,000-plus engineers and innovators in Bengaluru and Chennai to drive growth and innovation, and advance work in materials, manufacturing technologies and methods, and the “Digital World.”

INS Vikrant is likely to be commissioned on September 2.

Garcia indicated that Boeing was open to sharing some technologies of the F/A-18 Super Hornet with India. INS Vikrant is likely to be commissioned on September 2.

ALSO READ - “Vikrant”- India’s indigenous aircraft carrier to be commissioned on the country’s independence day – Here’s what we know

India is one of the world's largest arms importers, spending USD 12.4 billion between 2018 and 2021, the SIPRI Arms Transfers Database shows.

Prime Minister Narendra Modi's government is looking to domestic firms and eastern European nations for military gear and ammunition and has identified INR 25.15 billion (USD 324 million) worth of defence equipment it wants domestic firms to manufacture in 2022.

Rafale-M does not have a twin-seater trainer while its acquisition would mean commonality with the 36 Rafale jets of the Indian Air Force.

Which one is better for India?

Each fighter brings certain advantages while having some limitations. For instance, Rafale-M does not have a twin-seater trainer while its acquisition would mean commonality with the 36 Rafale jets of the Indian Air Force. On the other hand, the F/A-18 is a dedicated carrier-based jet with over 800 aircraft having been delivered to date.

"Super Hornet is powered by a General Electric GE-414 engine which is from the same family of engines powering the indigenous Light Combat Aircraft. We have developed an India-specific version of the GE-414 for the LCA-MK2. This could also become the engine for the indigenous fifth generation Advanced Medium Combat Aircraft (AMCA) under development."Satya Prakash, GE Aviation

Vistara airlines on Wednesday, August 24 introduced that it’ll start day-by-day continuous flights between Mumbai and Abu Dhabi from October 1. Abu Dhabi will be the 12th overseas destination of Vistara.

ALSO READ - Vistara plans to expand its hub to Mumbai

The airline, a joint venture between Tata Group and Singapore Airlines will operate daily flights between the two cities using its A320neo aircraft.

https://twitter.com/airvistara/status/1562339661649182721

According to a statement, the ticket price will be Rs 17,749 for the economy, Rs 22,949 for the premium economy and Rs 45,949 for the business class. With the commencement of flights on this route, the relations between the two countries will be strengthened.

"We are delighted to expand our presence in the UAE, with a second Emirate, and offer the choice of flying India’s best airline on one of the busiest international routes from India. We are confident that greater connectivity between Mumbai and Abu Dhabi will complement the growing trade and tourism between the two countries. We are certain that customers from India and the UAE will appreciate experiencing our award-winning product and services on the route."Vinod Kannan, Chief Executive Officer, Vistara

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Vistara has a fleet of 53 airplane, together with 41 Airbus A320, 5 Airbus A321 neo, 5 Boeing 737-800NG and two Boeing 787-9 Dreamliners. Out of these, two B787-9 and one A320 neo aircraft have been purchased and the rest are on lease.

ALSO READ - Vistara leases B787 Dreamliner to increase international flights operations

For Mumbai-Abu Dhabi direct flights, Vistara will use the A320 neo aircraft for the services.

The A320 neo aircraft that Vistara has been adding to its fleet comes with higher range capability (77 tonnes of maximum take-off weight), enabling the airline to fly longer regional international routes without payload restrictions.

Vistara, India’s finest full-service carrier, is on an expansion spree of its International Routes. The airline recently emerged as the second largest domestic airline by market share, and the company is celebrating the achievement. The airline crossed the 1 million domestic passengers mark in July for the first time.

A combat broke out between passengers and airport workers at Ahmedabad’s Sardar Vallabhbhai Patel Worldwide Airport over the delay of a SpiceJet plane for eight hours on Wednesday, August 24.

Later, security personnel and senior airport officials were called and they pacified the situation. All passengers left the airport on a later flight.

Flight from Ahmedabad to Varanasi delayed for 8 hours.

The SpiceJet flight SG0354 which was scheduled to depart at 10.30 am, but was rescheduled after 3 pm due to NOTAM. However, due to a network issue (congestion at the airport), it got delayed further and finally, it took off at around 7 pm for Varanasi.

According to sources in the Directorate General of Civil Aviation, the flight was delayed due to a ‘Network Issue’.

A source at Ahmedabad airport informed that the main runway of the airport was closed for maintenance between 11 am to 3 pm. Regarding it, NOTAM (Notice to Airmen) was issued to pilots.

The main runway at Ahmedabad airport was closed for maintenance between 11 a.m. and 3 p.m.

NOTAM or Notice to Airmen are notices distributed by means of telecommunication containing information concerning the establishment, condition or change in any aeronautical facility, service, procedure or hazard, the timely knowledge of which is essential to personnel concerned with flight operations.

A senior DGCA official stated that they were aware of the situation and that in such cases, passengers must be compensated if they request for it, because the rule requires it.

ALSO READ - Spicejet looking for a “knight in shining armour” to help with financial distress

The Uttarakhand government has urged the Central government for an airport at Chaukhatia near Bharadisen of the state, State Chief Minister Pushkar Singh Dhami informed.

His remarks came during a conversation with ANI after the 23rd Central Zonal Council Meeting chaired by Union Home Minister Amit Shah in Bhopal concluded.

He expressed gratitude to Prime Minister Narendra Modi for increasing the capacity of Dehradun airport. “Apart from the expansion of Pantnagar and Pithoragarh airports in the state, the airport is to be expanded at Gauchar and Chinyalisaud so that Chardham Yatra can be facilitated,” he said.

Uttarakhand CM wants an airport in Chaukhatia & fixed-wing air connectivity in Pithoragarh

Uttarakhand has 5 airports apart from Jolly Grant Airport in Dehradun. Gauchar Airport, Bharkot Airport (not operational for commercial flights), Naini Saini Airport (Pithoragarh airport), and Pantnagar Airport.

Jolly Grant airport in Dehradun is the primary airport in Uttarakhand where the majority of domestic flights from the country arrive. Pant Nagar airport is located in the Kumaon region of Uttarakhand. Other smaller airfields in Uttarakhand are situated in Gauchar, Bharkot as well as Naini Saini airport in the Pithoragarh district.

Dehradun Airport's commercial operations began on 30 March 2008, after a runway extension to accommodate larger aircraft. A new terminal building was inaugurated in February 2009. The current passenger terminal was inaugurated in October 2021. 

Dehradun Airport's commercial operations began on 30 March 2008, after a runway extension to accommodate larger aircraft

Located 20 km from Rishikesh, and 35 km from Haridwar, the airport Dehradun Airport is the 30th busiest airport in India, with over 1 million annual passengers. It is also known as the Air Gateway of Garhwal and plays an important role in the tourism of Uttarakhand.

Fixed-wing air connectivity in Pithoragarh

Uttarakhand Chief Minister Pushkar Singh Dhami emphasised the need for fixed-wing aircraft connectivity with the state's Pithoragarh town during a meeting with Union Civil Aviation Minister Jyotiraditya Scindia in the national capital.

He discussed in detail the issue of air connectivity in the state. Currently, the process of selection of airlines for three air routes - Pithoragarh-Pantnagar, Pithoragarh-Hindon and Pithoragarh-Dehradun is in progress under the Regional Connectivity Scheme.

https://twitter.com/pushkardhami/status/1562093092387586049

According to an official statement from CM Dhami's office, Scindia has directed the officers of his ministry that by September 30 work order should be issued to the airlines in this regard at the level of the Civil Aviation Ministry so that further action can be taken to establish the connectivity of Pithoragarh.

The Chief Minister said that the state government has proposed that considering the strategic importance of Naini Saini Airport, it should be upgraded from 2B to 3C and handed over to the Airport Authority of India (AAI) for independent management.

Naini Saini Airport should be upgraded from 2B to 3C and handed over to the Airport Authority of India (AAI) for independent management.

It was decided on this subject that the AAI and the government of Uttarakhand will prepare the service conditions of the MoU without delay so that an early decision can be taken in this regard. CM Dhami requested to direct Pawan Hans for a smooth operation of the heli-service to Pithoragarh under the Regional Connectivity Scheme and to connect Almora with the heli-service.

On this, Scindia directed the officers of the Ministry that action should be taken regarding regular service from the Ministry of Civil Aviation about providing air service of Pawan Hans every day from Friday, August 26.

Dhami also said, "to improve the air connectivity of Kumaon, a green field airport is proposed at Pantnagar." He requested to conduct an OLS survey of the new alignment proposed by the State Government for the expansion of Pantnagar Airport.

Dhami also said, "to improve the air connectivity of Kumaon, a green field airport is proposed at Pantnagar."

In this regard, the Union Minister said, "By November 30, instructions have been given to the Ministry of Civil Aviation for the OLS survey related to the project, along with instructions to prepare the DPRs of two small airports Gauchar and Chinyalisaud."

Along with Dehradun, the Chief Minister expected the Union minister to make Pantnagar airport an international airport.

On this occasion, Chairman of Airport Authority of India Sanjeev Kumar, Additional Secretary Civil Aviation of the Government of India Usha Padi, Secretary to Chief Minister Shailesh Bagoli, and Secretary Civil Aviation Dilip Jawalkar were also present.

Financially troubled Indian carrier SpiceJet Ltd. is open to investment from external parties, including other airlines, as it seeks to raise INR 2000 crore (USD 250 million), Chairman Ajay Singh told reporters in New Delhi on Tuesday, August 23.

Mr Singh declined to say what other carriers SpiceJet may be in discussions with but indicated an equity stake sale may be one option.

The shareholders of SpiceJet, which is a listed company, have approved fundraising of INR 1,500 to INR 2,000 crore, and some of the amounts have already been raised, Mr Singh said.

Spicejet looking for a "knight in shining armour" to help with financial distress

ALSO READ - SpiceJet in active discussion with a Middle Eastern carrier for a possible stake sale

The airline had earlier this month said it was “in discussions with various investors (including a Middle East carrier and an Indian conglomerate) to secure sustainable financing.”

SpiceJet's financial health worsened after Covid decimated air travel globally. The airline has suffered three straight years of losses while its market share has plunged to fifth from second largest.

In late 2021, the airline had cash and cash equivalents of just INR 72.9 crore compared with total debt of INR 9,750 crore. 

ALSO READ - Amidst ongoing court cases, SpiceJet posts net profit for Q3

The shareholders of SpiceJet, which is a listed company, have approved fundraising of INR 1,500 to INR 2,000 crore, and some of the amounts have already been raised.

In the October-December quarter of FY22, the airline had reported a net profit of INR 23.28 crore, as against a loss of INR 57 crore in the corresponding quarter of the previous fiscal. The revenue climbed to INR 2,259 crore, marking a jump of 34% as against INR 1,686 crore clocked in the preceding quarter.

ALSO READ - DGCA orders SpiceJet to operate only 50% of approved flights

In addition to a deteriorating balance sheet, SpiceJet is under scrutiny from authorities for reporting several mid-air malfunctions. The incidents have prompted India's aviation regulator to restrict the number of seats SpiceJet can sell at 50% for eight weeks.

The budget carrier is also tapping a government program that extends emergency credit lines to businesses hit by the pandemic, Singh said.

In 2015, Ajay Singh said the airline had been approached by foreign carriers seeking to purchase a stake.

ALSO READ - Cash-strapped SpiceJet plans to take delivery of 7 Boeing 737 Max

The no-frills airline currently has 60 operational aircraft and is also expecting Boeing to resume delivery of the 737 Max aircraft in October. The company will also raise capital via the sale and leaseback of at least seven additional Boeing Co. 737 Max aircraft this year, he said. 

"SpiceJet is doing its utmost to work through the stress we have faced," Mr Singh said. "We will do everything in our power to make sure SpiceJet remains a strong player."

It's not the first time SpiceJet has flagged third-party interest. In 2019, Mr Singh said SpiceJet had received several proposals to buy into the company but was only willing to evaluate those that were strategic. And in 2015, Ajay Singh said the airline had been approached by foreign carriers seeking to purchase a stake.

In late 2021, the airline had cash and cash equivalents of just INR 72.9 crore compared with total debt of INR 9,750 crore. 

Meanwhile, SpiceJet has also been trying to monetise its freighter business, SpiceXpress. People aware of the development said that while shareholders had approved the plan, the airline was yet to receive clearance from creditors to separate the business.

Recently, three Indian banks internally categorised loans to SpiceJet as being at "high risk" though the airline has not defaulted.

IDFC First Bank, Yes Bank and Indian Bank are concerned about SpiceJet's cash flows and have held talks with the carrier seeking assurances as it has been behind on payments to some aircraft lessors. 

SpiceJet has also applied for INR 280 crore loans under the Emergency Credit Line Guarantee Scheme.

Singh holds around 60% of the airline, of which 44.24% is pledged with lenders. Based on its Tuesday, August 23 closing share price of INR 46.25 on the BSE, SpiceJet's market cap was INR 2,783 crore.

SpiceJet has also applied for INR 280 crore loans under the Emergency Credit Line Guarantee Scheme.

The SpiceJet board is scheduled to meet on August 31 to consider and approve the financial results for the fourth quarter of FY22 and the first quarter of this fiscal, according to a regulatory filing.

"This is to inform you that meeting of the board of directors of the company will be held on Wednesday, the 31st day of August, 2022, inter-alia, to consider and approve: The audited standalone and consolidated financial results of the Company for the fourth quarter and financial year ended March 31, 2022; and the unaudited standalone and consolidated financial results for the first quarter ended June 30, 2022.The trading window for dealing in securities of the company shall remain closed for the designated persons till September 2, 2022, in view of the declaration of quarterly results."SpiceJet to Stock Exchanges

ALSO READ - SpiceJet under attack by ransomware; morning flights affected

SpiceJet has drawn questions over the inordinate delay in the release of Q4 FY22 results. The company had, on May 27, said a ransomware attack on IT systems has affected its audit process, and due to this, the results have been delayed.