IndiGo grounds 30 aircraft due to disruptions in the global supply chain

One of India's largest airlines IndiGo said that nearly 30 aircraft have been grounded due to "supply chain disruptions" on Monday, November 7. The airline is evaluating the wet leasing of planes and other options to boost operations. In a 'wet lease' arrangement, the lessor maintains operational control of flights while providing aircraft and crew.

ALSO READ - DGCA allows IndiGo to wet lease Turkish Airlines planes

The carrier, which is the world's seventh largest in terms of daily departures, had 279 aircraft in its fleet. It operates more than 1,600 daily flights and currently flies to 100 destinations, including 26 international ones. 30 planes of IndiGo are grounded due to supply chain problems, reported PTI citing sources.

A wet lease is a leasing arrangement whereby one airline (the lessor) provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline, which pays by hours operated.

IndiGo grounds 30 aircraft due to disruptions in the global supply chain

ALSO READ - DGCA turns down IndiGo request to wet lease Turkish planes

Last month, IndiGo’s request for wet leasing Boeing planes from Turkish Airlines for up to two years was cancelled by the aviation regulator DGCA. The regulator, however, allowed IndiGo to wet lease the planes for up to six months.

When contacted, an IndiGo spokesperson on Monday, November 7 confirmed to PTI that around 30 aircraft are on the ground. The spokesperson said that globally, the aviation industry continues to face significant supply chain disruptions.

"While it is our immediate priority to deploy adequate capacity to serve our customers, we are actively engaged with our OEM partners to work on mitigation measures that should ensure the continuity of our network and operations. As we work on various cost-efficient countermeasures with our OEM partners, the endeavour is to minimise the economic impact of around 30 AOG (Aircraft on Ground), resulting from this global disruption."

Spokesperson, IndiGo

The airline is looking at slowing down redeliveries through lease extensions, exploring the reinduction of aircraft into the fleet, and evaluating the wet lease options within the regulatory guidelines. "We are bullish on the market opportunities and will continue to add flights in existing and new markets," the airline said. The carrier has a domestic market share of more than 57%.

The carrier, which is the world's seventh largest in terms of daily departures, had 279 aircraft in its fleet.

ALSO READ - Around 10-12% of the Indian aircraft fleet grounded due to maintenance or engine-related issues

On November 1, aviation consultancy firm CAPA said that more than 75 planes of Indian carriers are currently grounded due to maintenance and engine-related issues. These planes, which account for around 10-12 % of the Indian fleet, are grounded due to maintenance or engine-related issues. "These will have a significant impact on financials in the second half," CAPA said in its India Mid-Year Outlook 2023.

During an earnings call with analysts on November 4, IndiGo CEO Pieter Elbers said supply chain disruption in aircraft manufacturing and subsequent shortage of spare engines worldwide have impacted the airline's operations due to the grounding of aircraft. "The challenges are forcing us to look at different ways and means to make sure that we can operate," he had said.

ALSO READ - IndiGo reports a loss of INR 1,583.33 crore in Q2 of the fiscal year 2022-23

In the September quarter, IndiGo's parent InterGlobe Aviation reported a widening loss to INR 1,583.34 crore due to higher fuel costs and foreign exchange loss.

IndiGo's parent InterGlobe Aviation reported a widening loss to INR 1,583.34 crore due to higher fuel costs and foreign exchange loss.

ALSO READ - Air India becomes India’s top “on-time” airline

Grounding of aircraft also comes at a time when competition in the skies is expected to heat up as the Tata Group-run Air India has started to realign its airline business and has set an ambitious target to achieve a 30% share in the domestic as well as international (to and from India) market over the next five years.

Go First facing the same issues as IndiGo

IndiGo is planning to extend the lease of in-service planes and induct new aircraft on the wet lease because supply-chain disruption has forced the grounding of 30 Airbus A320 planes.

Go First, which is facing a similar issue, has increased the utilisation of its operational aircraft to cover up the grounding of its Airbus planes. Go First is operating fewer flights than it did last winter and is trying to maintain the schedule it filed by increasing aircraft utilisation.

Go First is operating fewer flights than it did last winter and is trying to maintain the schedule it filed by increasing aircraft utilisation.

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

IndiGo, the country’s largest airline, operates a fleet of around 280 planes, which include Airbus A320 (CEO/NEO), A321 and ATR-72 aircraft. IndiGo and Go First’s Airbus fleet is powered by Pratt & Whitney and CFM engines.

Go First has 58 Airbus A320 (CEO/NEO) planes in its fleet and is operating 30-32 of them. A source in Go First said the airline was expecting up to 16 engines from Pratt & Whitney this month.

Singapore Airlines, a dominant Asian airline, had a successful second quarter as a result of increased travel demand. Singapore Airlines announced its first-half operational profit had reached a record SGD 1.23 billion (USD 876 million) for the period that ended in September. It was also the highest quarterly profit ever, coming in at SGD 678 million, surpassing the previous record of SGD 674.6 million set in Q3 2007–2008 by nearly 15 years.

The airline has profited from high passenger demand throughout the summer months in the Northern Hemisphere as countries increasingly reduce their COVID-19 border regulations. Although airlines are still expanding, there is still a capacity problem, which has led to higher ticket prices and increased income for the airline.

Singapore Airlines Posts Profits in Two Straight Quarters, first-half profit soars to $876 million

A spokesperson for Singapore Airlines stated that the carrier does not anticipate a decline in demand as the holiday season approaches.

“Demand is expected to be strong as we head into the year-end peak travel season. Forward sales are expected to remain buoyant in the coming months leading up to the Lunar New Year period.” Spokesperson, Singapore Airlines

During the COVID-19 pandemic, to avoid legal action from its creditors, many of its regional rivals had to sell their planes or lay off their employees permanently. As a result, when the borders were reopened, they were unable to react as swiftly as SIA could.

Singapore Airlines stated that "proactive fundraising, talent retention, and resource deployment" put it in a "strong position to capture the pent-up demand"

As a result, this led to a 13-fold increase in the number of passengers transported by full-service carrier SIA and low-cost carrier Scoot together, over the six months leading up to September 30, 2022.

Singapore Airlines stated that "proactive fundraising, talent retention, and resource deployment" put it in a "strong position to capture the pent-up demand", which was one of the reasons for its quick response to the reopening.

In the second quarter of FY 2022–23, the combined passenger capacity of Singapore Airlines' two carriers increased to an average of 68% of pre-pandemic levels.

“With strong support from many stakeholders, Singapore Airlines and Scoot were among the first carriers to launch flights and start sales to points served out of Singapore as the government took decisive action to reopen its borders to international travel, starting with the launch of the country's Vaccinated Travel Lane arrangements in September 2021.”

Singapore Airlines

The revenue increased by SGD 5,226 million (+694.0%) year over year to SGD 5,979 million during the first half. The 11-fold increase in traffic greatly outpaced the 118.7% increase in capacity. The result was that the passenger load factor increased by 66.8 percentage points to 83.0 per cent.

For the first half, the Group reported an operating cash surplus of SGD 2.51 billion, an increase of SGD 2.62 billion from the previous year.

As a result, it was able to redeem the first tranche of SGD 3.496 billion worth of convertible bonds that it had issued to its shareholders to raise money back in June 2020, as well as declare a dividend of 10 cents per share for the first time since the COVID-19 pandemic crippled the aviation industry.

Scoot is the low-cost carrier of the Singapore Airlines Group, currently operating out of Singapore to more than 20 destinations across Asia

The Group's passenger network covered 100 destinations in 36 countries and territories, with SIA serving 74 destinations and Scoot serving 48 destinations. The cargo network comprised 107 destinations.

With East Asian countries expected to gradually ease travel restrictions and in anticipation of the year-end travel demand, Singapore Airlines is planning to increase flights to various destinations in Japan, China and Indonesia in the coming months.

It will also step-up recruitment of cabin crew and pilots. The airline's total capacity is projected to reach an average of around 76 per cent in the third and fourth quarters of FY 2022-23.

ALSO READ - Singapore Airlines reports profit for the first time since the Covid-19 outbreak

Singapore Airlines is also currently in discussion regarding the merging of Tata-owned Air India and Vistara to create a multi-hub carrier.

Singapore Airlines is also currently in discussion regarding the merging of Tata-owned Air India and Vistara to create a multi-hub carrier.

ALSO READ - Vistara – Air India merger talks with Tata Group confirmed by Singapore Airlines

In a statement to the Singapore Stock Exchange, Singapore Airlines said, "The discussions seek to deepen the existing partnership between Singapore Airlines and Tata and may include a potential integration of Vistara and Air India. The discussions are ongoing, and no definitive terms have been agreed upon between the parties."

The merging of Air India and Vistara would then create the single largest carrier in the country, creating a mammoth competitor to the current low-cost dominant carrier IndiGo. The amalgamation of the carriers would also provide strong competition to the Middle Eastern carrier's presence for connections from the country.

Connections to North America are also an area for growth with the airline. Domestically, Vistara is the second-largest carrier in the country by market share.

Sustainable aviation looks for ways to lessen the negative effects that flying has on both society and the environment. Through innovative new techniques, it seeks to lessen aviation's impact on climate change. This area of expertise focuses on energy-efficient flight operations, cutting-edge propulsion systems, environmentally friendly aircraft technology, and highly effective aircraft designs.

Airbus ZEROe Project | Representative | Airbus

A paradigm shift in the aviation sector was signaled by the International Aviation Climate Ambition Coalition's first meeting at COP26 in Glasgow and the announcement of net zero global emissions targets by the International Air Transport Association (IATA) and the Airport Council International (ACI).

The aviation sector today is in an ironic situation. On the one hand, it connects individuals, locations, economies, and cultures. Additionally, it is essential for transporting supplies around the world, such as vaccines during the most recent global pandemic, and delivering humanitarian help to areas that need it most.

On the other side, aviation contributes significantly to climate change, making up between 2 and 3% of global carbon emissions. If significant adjustments aren't done, this percentage might rise to over 20% by 2050. The entire climate impact of the aviation industry can be up to three times greater than that of carbon emissions alone due to other, non-CO2 related consequences of air travel, such as contrail cirrus created by soot particles.

The World Aviation Festival, which was held this year in Amsterdam, focused heavily on the duty of industry leaders and stakeholders to address these issues. Three new realities were highlighted:

1. The urgent message

In favor of pursuing actual aircraft emissions reductions, EasyJet has chosen to discontinue its carbon offsetting program. The airline focuses on technologies such sustainable aviation fuel, hydrogen power, and carbon capture while testing its processes within the Science-Based Targets project in order to reduce CO2 emissions by 35% per passenger kilometer by 2035 and reach net zero by 2050.

With KLM introducing a portion of sustainable aviation fuel to all flights departing from Amsterdam and Lufthansa forming new agreements to use and promote sustainable fuels, both airlines have jumped on board. In addition, Lufthansa has added AeroSHARK film, a biomimetic technology that lowers drag, conserves fuel, and illustrates the innovation principle in action, to its fleet of Boeing 777F freighters.

Lufthansa Technik

Singapore Airlines has implemented new SITA technology and switched to sustainable aviation fuel in an effort to cut emissions by 15,000 tons yearly.

With the BA Better World pledge, which includes investment and advocacy around the considerate use of resources, the development of sustainable aviation fuel, and waste reduction measures, British Airways is on what it considers its "most important trip yet."

2. Cooperation and transparency are key

Airlines have access to a growing array of technologies for reducing emissions, from sustainable fuels to flight operations software.

It is impossible to exaggerate the value of collaboration given the immense complexity of the aviation value chains. For instance, the adoption of hydrogen-powered aircraft must coexist with major infrastructural modifications that will have an impact on a large portion of the aviation supply chain. Likewise, increasing the use of sustainable aviation fuel calls for international cooperation to create and control standards for raw materials, manufacturing techniques, and calculations of emissions reduction.

3. Sustainable Aviation Fuel- next name of the game

Because it may produce immediate emissions reductions, SAF is an essential component of the climate action puzzle. Long-term adoption of alternative solutions, like electrification and hydrogen power, will also be important, but full-scale implementation is still years, if not decades, away.

Representative | ADS Group

An important year for sustainable aviation fuel (SAF), 2022 saw more SAF offtake agreements announced than in the previous two years put together, making it by far the most significant year to date. Over three dozen airlines have signed up for upwards of 80 SAF offtake agreements, totaling a commitment of approximately 3.5 trillion liters of SAF, according to ICAO.

Key producers of SAF

The obvious advantages of SAF are well known, but meeting the increasing demand for SAF will be the main problem. Neste, the top supplier of sustainable aviation fuel, is well cognizant of this. Neste began producing SAF in 2011 and can already produce 100.000 tons of it annually.

Representative | ecac-ceac

There is also a rush of new players entering the renewable fuel industry alongside well-established providers like Neste, and more and more airlines are committing to utilizing SAF.

As an example, the IAG airlines have actively promoted the use of SAF in their respective markets. The first transatlantic flight powered by 35% SAF was carried by British Airways last year.

Regulation and collaboration are crucial

The use of sustainable fuels by airlines is being expedited by the necessity for strict regulation and regulations.

To decarbonize the aviation sector, urgent adoption of technologies like SAF, ambitious cooperation across value chains, and meaningful action right now are all essential. Additionally, global agreement on the best ways to encourage and measure emissions reductions would be required.

2022 United Nations Climate Change Conference

Wikipedia

The 27th United Nations Climate Change Conference is being in Sharm El Sheikh, Egypt, from November 6 through November 18, 2022. It is more widely known as Conference of the Parties of the UNFCCC, or COP27.

SOURCE : NESTE | JOURNEYTOZEROSTORIES.NESTE

COVER: Marshall Skills Academy

The Bangalore International Airport Limited (BIAL) announced that Kempegowda Airport (KIA) is back to pre-COVID-19 passenger levels due to the high traffic volumes observed in the current fiscal year (FY) 2023 up until October 26. 

According to BIAL, compared to October 2019, passenger traffic volumes increased by over 102% for domestic travel and by nearly 85% for international travel. From the beginning of the current fiscal year to the last week of October, the airport welcomed 16.30 million passengers, compared to 6.61 million at the same time the previous year.

ALSO READ - Flight operations at Kempegowda International Airport return to normal

“The aviation market witnessed a robust demand in the last six months, and this has impacted the passenger volumes positively. Air travel had taken a significant hit due to the pandemic, but it is recovering now, and we have observed growth in recent months. We are very optimistic that this upward trend will continue over the next few quarters.”

Satyaki Raghunath, Chief Strategy and Development Officer, BIAL

Traffic resurgence persisted in both the domestic and international sectors.

With the Deepavali weekend on October 21, the start of the holiday and festive season, 94,330 travellers passed through the airport. The Kempegowda International Airport in Bengaluru saw a lot of people in the days before Diwali. Thousands of passengers were seen lining up at 3 am with their bags to board flights. In a video that went viral, the airport did really resemble a crowded shopping mall 

Kempegowda International Airport in Bangalore records a 5-fold rise in global travellers

The frequency of flights to domestic locations has increased, improving connectivity to Tier II and III cities. As a result, from April to September 2022, transfer travel accounted for 14% of all airport traffic, while non-metro traffic climbed to 58% of all airport traffic. 

International airlines like Qantas and Cathay Pacific started flying to and from the airport, and these launches also increased the number of passengers in the international sectors. With more airlines adding extra capacity and resuming service to and from the airport, growth in the international segment is anticipated to expand.

While Ethiopian, Malindo Air, and Air Asia have restored regular passenger service, Emirates, Air France, KLM, Japan Airlines, and Kuwait Airways have increased their operations. One of the main reasons Emirates deployed an A380 to the airport was cited as the increased demand.

ALSO READ – Bengaluru Airport Named Best Regional Airport in India and South Asia 

The world’s largest passenger aircraft Airbus A380 touches down at Bangalore Airport

The arrival of Emirates flight EK562's Airbus A380 was witnessed by a large crowd of enthusiastic aviation fans at Bengaluru's Kempegowda International Airport (BLR) at 15:27 local time on October 14. Emirates ran a single Airbus A380 flight to BLR, before starting the service formally on October 30. 

In FY23, 118,852 ATMs were recovered during Air Traffic Movements (ATM) at the airport. Domestic ATMs stood at 1,05,354, while International ATMs stood at 13,498.

According to BIAL, the airport has made a name for itself as the principal South Indian transfer gateway. The main domestic routes in FY 2023 up to this point have been Delhi, Mumbai, Kolkata, Cochin, and Pune, accounting for 44% of all traffic, while the top international routes have been Dubai, Doha, Singapore, Frankfurt, and Male, making up 54% of all international traffic.

ALSO READ – Bangalore International Airport surpasses 250 million passenger count

A Tanzanian commercial flight operated by Precision Air crash-landed in bad weather in Lake Victoria on Sunday, November 6, killing 19 people.

The airport has been closed until further notice. The plane was flying from Dar es Salaam to Bukoba via Mwanza.

The country’s Prime Minister, Kassim Majaliwa, said officials believe all bodies have been recovered from the airplane. “We’re starting to pull out the luggage and personal items from the aircraft. A team of doctors and security agencies have started the process of identifying the dead and notifying the families,” Majaliwa said.

The airline confirmed the death toll and amended the number of survivors down to 24 in an updated statement on Sunday evening. Earlier, the carrier as well as local officials had said that 26 of the 43 people on board had been rescued.

“Precision Air extends its deepest sympathies to the families and friends of the passenger and crew involved in this tragic incident. The company will strive to provide them with information and whatever assistance they will require in their difficult time,” the airline said. “The names of passengers and crew on board the aircraft will not be released until all next-of-kin have been notified,” it added.

Precision Air identified the aircraft as an ATR42-500. The Franco-Italian manufacturer ATR did not immediately respond to a request for comment.

First introduced almost 40 years ago, the ATR42 is the smaller of two series of short-haul turboprops made by ATR, a joint venture of Airbus and Leonardo. The last fatal accident was in 2017, according to aviation-safety.net, a safety database.

The flight PW494, including 39 passengers and four crew members, had taken off from Tanzania’s commercial capital of Dar es Salaam and was headed to the town of Bukoba before it plunged into Lake Victoria as it was preparing to land.

Video circulating on social media taken by onlookers on the shores of Lake Victoria showed the aircraft submerged in the water with emergency responders coordinating rescue efforts from nearby boats.

Precision Air CEO Patrick Mwanri appeared visibly distressed while speaking to reporters in Dar es Salaam. Mwanri’s voice broke and he had to pause to wipe away tears as he said the plane had departed around 6 AM local and had been expected in the northwestern lakeside town of Bukoba at 8.30 AM.

“But at 8.53 a.m. our Operations Control Center got a report that that aircraft had not arrived,” he said in a televised statement.

The accident is believed to have happened on the final approach to the airport whose runway begins right next to Lake Victoria, Africa’s largest freshwater lake. Local officials suggested bad weather may have played a part in the accident, saying the area had been under heavy rainfall and strong winds at the time.

The regional airline has opened a Crisis Management Center and established information areas in Bukoba and Dar es Salaam to communicate with the families of the passengers.

Social media video showed the plane almost fully submerged with only the green and yellow livery on the aircraft's tail visible above the waterline.

Following news of the crash, Tanzania’s President took to social media to call for calm while rescuers worked at the site of a downed plane.

“I have received with sadness the information of the crash of the Precision Air flight at Lake Victoria, in the Kagera region,” President Samia Suluhu Hassan wrote on Twitter Sunday. “I send my condolences to all those affected by this incident. Let’s continue to be calm as the rescue operation continues and we pray to God to help us.”

Precision Air is a Tanzanian airline based out of Dar es Salaam. Precision Air, which is partly owned by Kenya Airways, was founded in 1993 and operates domestic and regional flights as well as private charters to popular tourist destinations such as the Serengeti National Park and the Zanzibar archipelago.

The Chandigarh International Airport will be renamed Shaheed Bhagat Singh International Airport, according to a notice from the Ministry of Civil Aviation (MoCA). PM Modi announced the renaming on September 25 and said it would be done in commemoration of the freedom fighter.

On September 28, they honoured the freedom fighter's 115th birthday. The Chandigarh airport's renaming to honour Bhagat Singh was announced on the same day.

In a statement dated November 2:

“It is notified that the Chandigarh International Airport in Chandigarh is named as 'Shaheed Bhagat Singh International Airport, Chandigarh' with immediate effect.”

-MoCA (Ministry of Civil Aviation)

ALSO READ - Chandigarh airport officially named after Shaheed Bhagat Singh

The Punjab and Haryana governments both own 24.5 per cent of the Chandigarh Airport and the rest is owned by the Airports Authority of India. Different names have been suggested by the two state governments.

Haryana wants it to be known as “Shaheed Bhagat Singh International Airport, Chandigarh”, whereas Punjab wants to call it “Shaheed-e-Azam Sardar Bhagat Singh International Airport, Mohali”.

The Chandigarh International Airport will be renamed Shaheed Bhagat Singh International Airport

Haryana CM Khattar and Deputy CM Dushyant Chautala both expressed gratitude to Prime Minister Narendra Modi on September 25, the day he announced the renaming of the Chandigarh airport in his Mann Ki Baat programme.

Following a decade of efforts by various governments, the dispute between Punjab and Haryana over their claims to the airport has finally been resolved with the official naming of the Chandigarh international airport after freedom fighter Bhagat Singh on Wednesday, September 28, the anniversary of his birth.

Airport renaming and naming follow a complex process, and the Union Cabinet has given its final approval.

Typically, airports are identified by the name of the city in which they are found. The convenience of travellers in general, and particularly foreign visitors who are unfamiliar with the local history of the area, was taken into consideration when this decision was made in 2016.

The idea of naming airport terminals after notable people and naming airports after the cities they are located in had gained traction.

The principles and regulations were altered, and names were changed by personalities. In some cases, the state government in question will propose a name, and the relevant state legislative assembly will then approve it by a resolution. For final clearance, the same is then forwarded to the Union Cabinet.

The creation of 21 new greenfield airports across the nation has received "in principle" clearance from the aviation ministry.

India anticipates building up to 80 airports in the next 5 years to accommodate the rising passenger demand, keeping up with the country's consistent growth trend in civil aviation. According to the civil aviation ministry, the nation's airports need to be developed, and the current infrastructure needs to be upgraded to meet the needs of the nation. The new airports in the pipeline are part of that vision.

ALSO READ - Centre has approved the construction of 21 new greenfield airports

The creation of 21 new greenfield airports across the nation has received "in principle" clearance from the aviation ministry. Mopa in Goa, Navi Mumbai, Shirdi, and Sindhudurg in Maharashtra, Kalaburagi, Vijayapura, Hassan, and Shivamogga in Karnataka, Dabra in Madhya Pradesh, Kushinagar and Noida (Jewar), in Uttar Pradesh, and Dholera and Hirasar (Rajkot), in Gujarat, are a few of these.

ALSO READ - Government plans to build 220 airports by 2025 with 80 new ones

The government intends to establish a total of 220 airports by 2030 due to the strong growth potential of the nation's civil aviation sector. Under the regional RCS-UDAN project, many of these airports, helipads, and water aerodromes are slated for development in FY 2022–2023.