IndiGo co-founder Rakesh Gangwal donates INR 100 crore to IIT Kanpur

Radhika Bansal

05 Apr 2022

Indian Institute of Technology - IIT Kanpur has received a donation of INR 100 crore from Rakesh Gangwal, cofounder of the airline IndiGo, to set up a school of medical sciences and technology.

IIT-Kanpur has also received another INR 200 crore in donations from other alumni for the medical institution, which will have a 450-bed super speciality hospital and several centres of excellence, its director, Abhay Karandikar, told ET.

The medical sciences and technology school will incorporate engineering research in the medical sciences field and requires INR 600 crore as an investment.

IndiGo co-founder Rakesh Gangwal donates INR 100 crore to IIT Kanpur

The complete amount has not been received by the institute yet. “The full INR 100 crore will be received for two years but we have already received a large sum,” Abhay Karandikar said.

“He had already transferred INR 7 crore in December, even without signing an agreement. So, I think within the next two years we will receive the entire amount, and we have already received a substantial amount today.”

"Half of the funds for the school and centres of excellence are already in. This endeavour of IIT-Kanpur is going to bring disruption as engineering research is being used in the medical field," said Karandikar.

https://twitter.com/karandi65/status/1511002610207141890

Already, the IIT is setting up centres of excellence for telemedicine, AI healthcare, infectious diseases, non-invasive imaging, etc. "These centres are running at Kanpur at an early stage," he said. The school is likely to be up and running in the next two to three years.

Earlier, Karandikar had tweeted: "Here is big news from IIT Kanpur. In an extraordinary gesture, our alumnus Mr Rakesh Gangwal has made one of the largest personal donations with a ?100 crore contribution focused on supporting the School of Medical Sciences and Technology at IIT Kanpur."

About Rakesh Ganwgal

Gangwal graduated from IIT Kanpur in 1975. The Indian-American businessman is the co-founder of IndiGo airlines. He was the chairman, president, and CEO of Worldspan from 2003 to 2007. Gangwal also served as the president and CEO of US Group Airways from 1998-2001.

Gangwal graduated from IIT Kanpur in 1975. The Indian-American businessman is the co-founder of IndiGo airlines.

According to his profile on the IIT Kanpur website, his long association with the airline industry began in 1980, when as an Associate of Booz Allen & Hamilton, Inc, he worked closely with United Airlines.

Gangwal did his MBA from Wharton School of the University of Pennsylvania in 1979. Gangwal is a distinguished alumnus of IIT Kanpur. He also instituted the Champa Devi Gangwal chair at the institute in honour of his mother.

About Gangwal School of Medical Sciences and Technology

The Gangwal School of Medical Sciences and Technology will be completed in two phases. Phase I of the project will include setting up a 500-bed Super-Specialty Hospital, Academic Block, Residential Hostel, and Service Block with a total built-up area of approximately 8,10,000 sq ft.

Phase I will also include setting up Centres of Excellence (CoE) for pursuing R&D activities in futuristic medicine. This phase has been tentatively planned to be completed over the next 3-5 years.

Phase II of the project will see the hospital capacity grow to 1000 beds, expansion in clinical departments/centres, research areas, the inclusion of paramedical disciplines, alternative medicine, hospital management, sports medicine, and public health programs. Phase II has been tentatively planned to be completed for 7-10 years.

IIT Kanpur has been raising funds for this project which entails a cost of INR 600 crore.

“The proposed medical school will play an important role in driving IIT Kanpur’s innovations in medical research and technology and catapult India into the global league of institutions that are converging medical sciences and technology to benefit humankind,” Prof Abhay Karandikar, Director of IIT Kanpur said.

Prof Karandikar met Gangwal in Mumbai on Monday, April 4 where the latter announced the donation for his alma mater. IIT Kanpur has been raising funds for this project which entails a cost of INR 600 crore. The multidisciplinary institute, the IIT Kanpur, as planned would have nine advanced research centres.

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Kolkata-bound IndiGo flight stranded after experiencing a technical issue during take-off

Radhika Bansal

04 Apr 2022

A Kolkata-bound IndiGo flight was grounded at the Ranchi airport on Saturday, April 2 after it developed a technical snag while taking off, officials said.

The 72-seater IndiGo ATR flight with 62 passengers on board was to take off around 9 AM, they said.

"The air-conditioner of the plane developed a snag and it stopped working. So, the flight was grounded for repair works," Ranchi airport director Vinod Sharma told PTI. Alternative arrangements were made for the passengers, he said.

A statement from IndiGo said it regrets the inconvenience caused to the passengers.

"IndiGo ATR flight 6E-7562 from Ranchi to Kolkata had returned back to parking bay due to a technical snag in aircraft cabin air-conditioning system. The flight was cancelled and the aircraft is under maintenance for the necessary checks," the statement read.

ALSO READ - A passenger hacks the IndiGo website to track down his misplaced luggage

Recently, An IndiGo passenger who lost his luggage shared his “low-key hacker moment” on Twitter and narrated how he managed to find it back all by himself. After Nandan Kumar’s Twitter thread went viral, the airlines responded by saying their IT processes are completely robust and the website was not compromised.

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As Indian airlines tussle over fare hikes, cheap tickets are here to stay

Radhika Bansal

04 Apr 2022

Top Indian airline bosses agreed on many things at the Wings India airshow that happened at Hyderabad's Begumpet airport in March 2022 including taxes should be reduced and airport capacity must be ramped up.

One thing they couldn’t settle upon was whether unfair competition is keeping fares artificially low in what’s already a brutally competitive market.

Sunil Bhaskaran, the chief executive officer of AirAsia India, was upfront. Indian aviation is suffering from “irresponsible competition” that’s kept fares low despite high taxes and fuel prices, he said. Bhaskaran didn’t single out who he was referring to. But the one carrier capable of making the entire market dance to its tune is IndiGo, India’s largest airline.

IndiGo, operated by InterGlobe Aviation Ltd., controls more than 50% of the domestic market.

IndiGo, operated by InterGlobe Aviation Ltd., controls more than 50% of the domestic market. Nine other airlines compete for the rest, giving the fast-growing low-cost carrier commanding power over fares.

Competition is set to heat up even further, with two other airlines preparing to launch services later this year in a market where tickets are often sold below operational costs -- a situation that has led to the demise of several high-profile carriers.

IndiGo, however, is unperturbed by criticism as well as calls from smaller rival SpiceJet Ltd. for airlines to work together to increase fares, even if that results in a slight dip in bookings.

“I’m sorry, but this is not about working together to raise fares,” Ronojoy Dutta, IndiGo’s CEO, said in response to a suggestion that other airlines can increase fares if IndiGo takes the lead. “Look, ultimately IndiGo’s strategy is to provide superior customer service and get a disproportionate part of the revenue,” Dutta said, to laughter and applause.

Cut-throat pricing has already forced many including Jet Airways to fold unceremoniously or go through court-run bankruptcy processes.

IndiGo’s vow to remain “very, very competitive” going forward is bad news for everyone, including the local affiliate of Singapore Airlines Ltd., IPO-bound Go First and formerly state-run Air India Ltd.

Cut-throat pricing has already forced many including Kingfisher Airlines Ltd. and Jet Airways India Ltd. to fold unceremoniously or go through court-run bankruptcy processes.

IndiGo, the world’s biggest customer for Airbus SE’s best-selling A320neo jets, is a rare exception, managing to make money while keeping a tight lid on costs. It’s also inked lucrative long-term maintenance and engineering contracts that were negotiated as part of large aircraft orders.

“It’s got to do with the sheer size they are. IndiGo is a gigantic revenue machine,” said Mark Martin, founder of Dubai-based Martin Consulting LLC, which advises the aviation industry.

IndiGo is the world’s biggest customer for Airbus SE’s best-selling A320neo jets

“Naivety and ignorance can be devastating and wreak havoc in the system” and this isn’t a good time for IndiGo to display bravado, he said. “At some point, IndiGo will have to raise fares or balance their fares to some degree.”

Sydney-based CAPA Centre for Aviation said in 2021 that it has “run out of words to describe the state of Indian airlines,” arguing the industry is “standing on the edge of a cliff.”

Assuming oil at USD 70 a barrel and a rupee-dollar exchange rate of 75, CAPA forecast Indian carriers could lose about USD 8 billion in the two years through March 2022.

Brent oil is now trading at more than USD 100 a barrel and the Indian rupee tumbled to a record low of 76.9812 per dollar in March.

There are some signs of fares rising in recent times, but that’s got more to do with surging oil prices because of the war in Ukraine

There are some signs of fares rising in recent times, but that’s got more to do with surging oil prices because of the war in Ukraine. For April, tickets from New Delhi to Mumbai -- one of the world’s busiest domestic routes -- are selling at levels 42% higher than before the war, according to online travel agency Yatra.com.

At the same conference, SpiceJet Chairman Ajay Singh, who’s credited with turning around a carrier that almost failed after running out of cash, said higher oil prices present a “tremendous” opportunity for airlines to earn more revenue. But he also said he got messages from customers complaining SpiceJet’s fare hikes were “extortionate.”

The problem is price-sensitive passengers, who are now used to notoriously cheap fares, and that mindset has to change, Singh said.

SpiceJet got messages from customers complaining that its fare hikes were “extortionate.”

“We need to be very cognizant of the fact that the aviation sector has suffered huge losses as it’s a chronically-ill industry, and I don’t know what the hell Vinay Dube is trying to do by booking more airplanes and creating a new airline at this time,” Singh said, referring to the chief executive of upcoming carrier Akasa, which is backed by billionaire Rakesh Jhunjhunwala.

Aviation fuel prices in India have been “perennially” high and are moving higher, which will either compress margins further, limiting cash flow that should be used to repay Covid-incurred debt or forcing price increases, which may crimp travel demand, according to Robert Mann, the New York-based head of aviation consulting firm R.W. Mann & Co.

“That demand loss will also imperil the carriers with the least available liquidity and some will fail,” said Mann. “It will be an interesting decade in Indian aviation.”

(With Inputs from Bloomberg)

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Air India to cut flights to crisis-hit Sri Lanka due to poor demand

Radhika Bansal

04 Apr 2022

Air India on Sunday, April 3 said it would reduce its India-Sri Lanka services from 16 flights per week to 13 flights per week from April 9 due to poor demand.

Sri Lanka is currently experiencing its worst economic crisis in history. With long fuel lines, cooking gas, essentials in short supply and long hours of power cuts, the public has been suffering for weeks.

"Currently, Air India is operating 16 flights a week — daily flights from Delhi and nine flights a week from Chennai,” an Air India spokesperson told PTI.

Air India to cut flights to crisis-hit Sri Lanka due to poor demand

In the new schedule, the airline would be operating a total of 13 flights per week, the spokesperson noted. In the new schedule, while the frequency from Chennai will remain untouched, flights from Delhi will reduce from seven to four per week, the spokesperson said.

"Four flights from Delhi instead of seven effective April 9 due to poor loads," the spokesperson noted. AI 283 in the Delhi-Colombo sector will now operate on Mondays, Wednesdays, Fridays and Sundays from April 8 to May 30. AI 284 on the Colombo-Delhi sector will operate on Mondays, Tuesdays, Thursdays and Saturdays from April 9 to May 31.

Other Indian carriers are going to take a call on calibrating their Sri Lanka flights’ frequency this week as the demand has fallen sharply.

Other Indian carriers including IndiGo are going to take a call on calibrating their Sri Lanka flights’ frequency this week as the demand has fallen sharply.

“We are witnessing lower bookings to Colombo due to the ongoing crisis. We are continuously monitoring the impact and may take appropriate action to adjust the capacity based on the demand and situation in Sri Lanka,” an IndiGo spokesperson had said Saturday.

An official of another leading Indian carrier said: “We are still operating but loads are dropping. A decision on suspension/reduction of flights will be taken early this week.”

In the past few years, the island’s airline — Sri Lankan — has emerged as one of the biggest international airlines in India in terms of the number of flights. A significant number of Indian travellers fly Sri Lankan to transit via Colombo.

A Sri Lankan official said ATF supply at Colombo Airport has not been hit

In fact, the DGCA-approved summer schedule-2022 shows Sri Lankan’s 128 weekly flights to and from India are second only to 170 of Emirates — the international airline with maximum flights here.

A Sri Lankan official said ATF supply at Colombo Airport has not been hit. “All flights are on schedule. Tourists are going,” she said.

The Sri Lankan government on Sunday, April 3 blocked social media platforms such as WhatsApp, Twitter, Facebook and Instagram after declaring a nationwide public emergency and imposing a 36-hour curfew ahead of a planned anti-government rally over the worst economic crisis on the island nation.

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HAL reaches a new high with earnings over INR 24,000 crore in FY22

Radhika Bansal

03 Apr 2022

Hindustan Aeronautics Limited (HAL) recorded the highest ever revenue of over INR 24,000 crore (provisional and unaudited) for the financial year ended on March 31, 2022, registering a 6% growth over the previous fiscal. The corresponding figure for the previous year stood at INR 22,755 crore.

"Despite the challenges of the second wave of Covid-19 during the first quarter of the year and the consequent production loss, the Company could meet the targeted revenue growth with improved performance during the balance period of the year."R Madhavan, CMD, Hindustan Aeronautics Limited (HAL)

The second wave of Covid-19 had compelled the company to declare a phased lockdown at various divisions during April and May 2021, the Bengaluru-headquartered company noted in a statement. The employees had put in additional hours in June and July 2021 to compensate for the loss of man-hours due to the lockdown, it said.

Further, based on the improved financial performance and cash flow position, the credit rating agencies CARE Ratings and ICRA Limited have upgraded the company's credit rating from AA+ Stable to AAA/Stable during the financial year, it was stated.

HAL reaches a new high with earnings over INR 24,000 crore in FY22

HAL said it achieved record revenue with the production of 44 new helicopters/aircraft, 84 new engines, overhauled 203 aircraft/helicopters and 478 engines.

An Intent of Cooperation (IOC) was signed between Hindustan Aeronautics Limited (HAL) and Pawan Hans Limited (PHL) for the purchase or long term lease for 20 helicopters, 10 each civil variants of ALH Dhruv and Light Utility Helicopters at the Wings India-2022 held at Hyderabad's Begumpet Airport.

ALSO READ - IOC signed between HAL and Pawan Hans for 20 helicopters

HAL bagged a contract for the production of 15 Light Combat Helicopters (LCH)

This would also bring synergy between HAL and PHL in the helicopter ecosystem and strengthen the helicopter business in India’s civil aviation market.

Recently, HAL bagged a contract for the production of 15 Light Combat Helicopters (LCH) - 10 for IAF and 5 for the Indian Army - for INR 3,887 crore along with Infrastructure sanctions worth INR 377 crore.

Considering the improved financial performance during the financial year, HAL paid an interim dividend of INR 40 per share representing 400% of the face value of INR 10 per share during 2021-22, the statement added.

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Delhi airport posted a fabulous recovery in March to become the third busiest airport in the world

Radhika Bansal

02 Apr 2022

With Covid cases on the decline and rising demand for air travel, Delhi airport posted a fabulous recovery in March to become the third most busiest airport in the world, according to recent data released by UK-based global travel data provider company, OAG.

Two years ago, in March, Delhi airport held the number 20 rank. Airlines operating at the Delhi airport flew a total of 3.5 million seats in March, a jump of 18% compared with February.

The busiest airport in the world was Atlanta Hartsfield-Jackson with a scheduled airline capacity of 4.5 million, followed by Dubai international with a capacity of 3.7 million seats.

Delhi airport posted a fabulous recovery in March to become the third busiest airport in the world

Among the trio, the Delhi airport was the surprise winner as both Atlanta and Dubai have held high rankings before. Pre-pandemic, in March 2019, for instance, Atlanta was the busiest airport in the world, while Dubai was at number 3.

In the past two years, the restrictions imposed on travel by governments the world over have disrupted the global rankings.

In the coming months, when more and more countries relax their travel restrictions, the conventional order would be restored and Delhi will lose its high rank.

“Only six of the ‘Top 10 Busiest International Airports’ this month were there in March 2019 (pre-pandemic). Doha, Madrid, New York and Dublin now replace Hong Kong, Singapore, Incheon and Bangkok in March 2022, pushing them out of their Top 10 positions of March 2019. In March 2022, Delhi moved up 6 places into third place, now ahead of Guangzhou."OAG

In December 2021, Delhi was ranked the fifth busiest airport in the world, pushed up by a steady rise in domestic travel, especially during the festive months around year-end.

Between November 6, 2021, and January 3, over 3 lakh domestic passengers boarded flights every single day, according to data shared by the ministry of civil aviation.

ALSO READ - Delhi’s IGI airport busier than Dubai International in November – OAG

In November, Delhi Airport is busier than Dubai International Airport (DXB) in terms of combined domestic and international seat capacity deployed by airlines.

In November, Delhi Airport is busier than Dubai International Airport (DXB) in terms of combined domestic and international seat capacity deployed by airlines.

At 30.87 lakh, Indira Gandhi International Airport (IGIA) is the seventh busiest airport globally in November, slightly ahead of DXB at 30.72 lakh, according to UK-based air consultancy firm OAG. In pre-pandemic November 2019, DXB was at number 3 and IGIA at number 10 on this criteria.

But as the Covid third wave took hold in January, passenger traffic dropped, leading to Delhi airport dropping in the rankings.

In the first week of January, it fell to less than two lakh passengers per day, which took the country’s passenger volumes back to those handled in July 2021, post the Covid second wave. In March though, the airport appears to have recovered.

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