IndiGo to Operate the Inaugural Flight from Noida International Airport

Noida International Airport (NIA) signed a Memorandum of Understanding (MoU) with IndiGo on November 24, designating the domestic budget carrier as the inaugural or launch carrier for the airport.

Under this arrangement, NIA and IndiGo will collaborate to develop and strengthen air connectivity within Uttar Pradesh and beyond. The partnership aims to explore new and innovative ideas to enhance operational efficiency and customer experience, as stated in the airline's release.

The collaboration is expected to provide a broad route network to flyers and create new business opportunities in the region. Christoph Schnellmann, Chief Executive Officer of Noida International Airport, expressed excitement about the partnership, highlighting the potential for bolstering air connectivity and ensuring an exceptional customer experience.

Pieter Elbers, Chief Executive Officer of IndiGo, emphasized that their operations at NIA will offer seamless connectivity across their extensive network, benefiting the people of Uttar Pradesh. He also expressed anticipation for the inauguration of the new airport in 2024 and the ongoing collaboration with NIA management to explore innovative ways to deliver an affordable, on-time, and hassle-free travel experience across the 6E network. "We look forward to the inauguration of the new airport in 2024 and will continue to work with NIA management to explore innovative ways to deliver an affordable, on-time, and hassle-free travel experience across the 6E network," he added.

The first phase of Noida International Airport is set to be operational by the end of 2024, featuring one runway and one terminal with a capacity to handle 12 million passengers annually. Upon completion of the fourth phase, the airport will have the capability to manage 70 million passengers per year.

The greenfield airport is located in the Jewar area of Gautam Buddh Nagar district in western Uttar Pradesh, about 75 km from Delhi. Once operational, it will be the second international and overall third commercial airport in the National Capital Region (NCR). The authorities concerned are also in talks with some more airlines, both Indian and foreign, which will start their operations at the airport later.

Commercial Operations at Noida International Airport

The upcoming airport will begin commercial operations with as many as 65 flights, according to government officials. The first phase of the airport, which last month received its unique IATA code DXN, has an October 2024 commissioning deadline.

Out of 65 flights under consideration, 25 would be of the ‘domestic’ category and connect to significant destinations like Mumbai, Kolkata, and Bengaluru. In addition to this, a total of 37 trips would fall under the "Regional" category; these flights would go to smaller cities where planes fly less frequently. Apart from that, 2 international flights and one cargo jet will also begin operating from Noida airport, according to reports.

For International carriers, airlines operating from Dubai and Singapore are under consideration. “If the attempt to select two foreign airlines does not work out, Indian airlines will be chosen for international travel from Noida Airport,” said an official.

In its initial year, the Noida Airport is expected to be used by about 5 million people, according to the Techno-Economic Feasibility Report (TEFR). “The challenge will be to attract passengers, to develop a complete environment so that people choose Jewar in place of IGI Airport for their travel,” said the official.

It is projected that 5 million passengers will use the Noida International Airport by the end of the first year of operations. The projected annual footfall for the first phase is 12 million passengers. Construction of the proposed second runway will commence once the airport reaches 80% of this capacity.

Spread across 1,334 hectares in Jewar, the site is strategically connected to NCR and Western UP: It is 72 km from IGI Airport, 40 km from Noida, and 130 km from Agra. It is also about 30 km from State Highway 22A (which connects Palwal and Aligarh) and 700 metres from the Yamuna Expressway.

Lenders to Jet Airways told the Jalan-Kalrock Consortium (JKC), the successful bidder for the revival of the grounded carrier, to produce the Air Operator Certificate (AOC) in the next hearing at the National Company Law Appellate Tribunal. The request for the AOC, a prerequisite for flight operations, was made during the hearing in a case at the National Company Law Appellate Tribunal (NCLAT).

JKC is led by UAE-based businessman Murari Lal Jalan and London-based Kalrock Capital. The troubled airline’s AOC, revalidated by the Directorate General of Civil Aviation (DGCA) on May 20 of the previous year, expired on May 19, hinting that the airline is unlikely to commence commercial flights shortly.

India’s aviation regulator renewed the airline’s AOC for over a month till September 3. The lenders have now told the airline to produce the flying permit to prove their intention of a revival. The next date of hearing is December 11. Earlier, the lenders of Jet Airways had questioned the source of payment of JKC, saying it is not compliant with the Resolution Plan.

Additional Solicitor General (ASG) N Venkatraman, representing the lenders led by the State Bank of India (SBI) in NCLAT, said last month the source accounts from which the payments were made were questionable. "Till now they (JKC) were taking us for a ride, now they are taking this court for a ride," Venkatraman had said.

According to the payment schedule approved by the NCLAT in August, JKC was required to pay INR 100 crore by August 31, another INR 100 crore by September 30, and the rest Rs 150 crore was to be adjusted against the performance bank guarantee. The lenders, however, said INR 13 crore of the INR 200 crore payment towards the dues came from “other sources” in contravention of the resolution plan.

JKC has refuted the allegations levelled against it by the lenders on the source of funding for reviving Jet Airways. "We highly question the lenders' intent to transfer the ownership of the company in favour of JKC after JKC has executed all its obligations under the court-approved resolution plan by paying the full amount of INR 350 crore. This is in light of the latest application filed by the COC (Committee of Creditors) to stay the implementation of the approved resolution plan recently in NCLT," it said.

What is Happening With Jet Airways?

On August 28, NCLAT permitted the consortium to pay INR 200 crore by September 30 and permitted the adjustment of an existing bank guarantee towards INR 150 crore.

Earlier in August, the lenders told NCLAT that they may choose to not pursue the appeal against the transfer of the airline's ownership to Jalan Kalrock Consortium if it pays INR 350 crore towards fulfilling condition precedents. In May 2023,  NCLAT granted the consortium, which emerged as a successful bidder to take over Jet Airways, more time to make payments to the State Bank of India (SBI).

While the National Company Law Tribunal (NCLT) approved the transfer to Jalan Kalrock in January, the decision was challenged in NCLAT, which ruled in favour of the consortium on March 3, 2023. Hence, the Jalan Kalrock Consortium was entitled to exclude the November 16, 2022-March 3, 2023 period, during which the ownership hearing was on, to comply with the payment deadline.

On January 13, NCLT allowed the transfer of the beleaguered airline to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. The lenders approached the NCLAT, opposing the ownership transfer, saying the consortium had not fulfilled its obligations.

Jet Airways was grounded in April 2019 over growing losses and a debt of about INR 8,000 crore. In October 2020, the airline's Committee of Creditors (CoC) approved the revival plan submitted by the Jalan-Kalrock consortium. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium. On 22 June 2021, the NCLT approved the resolution plan for Jet Airways.

Lenders had also expressed apprehensions about the consortium's foreign partner Florian Fritsch after his properties were searched in 2022 as part of a larger fraud and money laundering probe.

In response to a rising number of incidents involving GPS spoofing and jamming affecting Indian airlines and aircraft flying over the Iraq-Iran area, the Directorate General of Civil Aviation (DGCA) in India has taken proactive measures. The aviation regulator has recently released a circular directed at airlines and the Airports Authority of India (AAI) to address the emerging threat posed by fake GPS signals.

Background

The DGCA formed an internal committee on October 4 to investigate the increasing reports of interference with the Global Navigation Satellite System (GNSS) over airspace in the Middle East. This committee has been actively involved in assessing the situation, raising awareness among operators, and engaging with global experts to formulate an effective response to the challenge.

Recommendations and Best Practices

The circular issued by the DGCA is based on the recommendations of the internal committee. It reflects the best practices identified through consultations with international experts and aligns with guidance provided by the International Civil Aviation Organization (ICAO). The aim is to equip airlines, pilots, the AAI, and air traffic controllers with comprehensive mitigation measures and action plans.

Mitigation Measures Outlined in the Circular

• Contingency Procedures: The circular emphasizes the development of contingency procedures in coordination with equipment manufacturers. This includes strategies to detect and counteract GPS spoofing, ensuring that aircraft systems can quickly adapt to any interference.
• Risk Assessment: To address the operational risk associated with GPS interference, the circular suggests conducting safety risk assessments. This involves evaluating the potential impact of spoofing on flight paths and implementing measures to minimize risks to aviation safety.
• Operator and Pilot Awareness: The DGCA highlights the importance of sensitizing operators and pilots to the threat of GPS spoofing. Awareness programs are recommended to ensure that aviation professionals are well-informed and capable of responding effectively to potential incidents.
• Collaboration with Stakeholders: The circular underscores the need for collaboration among stakeholders, including airlines, the AAI, and air traffic controllers. By fostering communication and cooperation, the aviation industry can collectively address the challenges posed by GPS interference.

Conclusion

The DGCA's proactive approach to addressing the growing threat of GPS spoofing demonstrates a commitment to ensuring the safety and security of Indian airspace. By incorporating international best practices and leveraging expert guidance, the circular provides a comprehensive framework for mitigating the risks associated with GNSS interference. As the aviation industry continues to evolve, such measures are crucial to maintaining the integrity of navigation systems and safeguarding the well-being of passengers and crew.

With Inputs from Economic Times

Brussels Airlines, a prominent carrier, is facing a wave of industrial unrest as three trade unions representing cabin crews have called for a strike from December 1 to 3. The unions allege that the airline's management has failed to comply with certain collective work agreements, prompting this move. In addition to the cabin crews, pilots have also issued a strike notice scheduled to begin on December 11, potentially causing disruptions during the crucial end-of-year holiday season.

Cabin Crew Strikes (December 1-3)

The catalyst for the impending cabin crew strikes revolves around perceived non-compliance by Brussels Airlines' management with specific collective work agreements. The three trade unions spearheading the strike, as reported by Le Soir and confirmed by Didier Lebbe, the permanent secretary of the CNE union, are rallying cabin crews to protest against what they deem as management's disregard for established agreements.

The unions are expected to outline their grievances in detail, shedding light on the specific aspects of the collective work agreements that they believe have been violated. The strike, if it materializes, has the potential to disrupt the airline's operations during a crucial period, affecting passengers and the airline's overall performance.

Pilot Strikes (From December 11)

Adding to the airline's challenges, pilots have issued a separate strike notice slated to begin on December 11. This development raises concerns about a prolonged period of industrial action, extending beyond the initial cabin crew strike. The timing of the pilot strike, coinciding with the holiday season, amplifies the potential impact on travelers and the airline's financial stability.

Management Response

In the face of these looming strikes, the management of Brussels Airlines is expected to respond to the allegations made by the unions. A proactive approach to addressing the concerns raised by both cabin crews and pilots will be crucial in mitigating the impact on operations and maintaining the airline's reputation.

Potential Disruptions and Traveler Concerns

With strikes planned during the holiday season, there is a heightened risk of disruptions for passengers. Travelers may face cancellations, delays, and other inconveniences, leading to increased frustration and potential financial losses. The uncertainty surrounding the airline's operations during this period may also impact ticket sales and future bookings.

Conclusion

The industrial unrest at Brussels Airlines, marked by strikes announced by both cabin crews and pilots, poses a significant challenge for the airline as it navigates through the busy end-of-year travel season. The coming days will likely see negotiations between the unions and management, with the hope of finding a resolution to the underlying issues and averting widespread disruptions. As the situation unfolds, both passengers and industry stakeholders will closely monitor developments to assess the potential impact on one of Belgium's major carriers.

With Inputs from Reuters

In a significant rebound, LATAM Airlines has reclaimed its position as the market share leader in flights between Brazil and the U.S., outpacing American Airlines and United Airlines in the quarter ending October, according to data released by the National Civil Aviation Agency (ANAC). This achievement follows LATAM's resumption of non-stop flights to Los Angeles, signaling a promising revival of international air travel.

Current Market Dynamics

In the competitive landscape of Brazil-U.S. flights, LATAM surged ahead by transporting over 260,000 passengers during the specified quarter. The average load factor on these flights reached an impressive 89%, reflecting a robust demand for travel between the two countries. Brazil, designating the U.S. as its primary market for international flights, boasted an 18% share, surpassing other key destinations like Argentina (15%) and Portugal (12%).

LATAM's Comeback Trail

LATAM's return to the top position in market share is a noteworthy feat, especially considering its last leadership stint occurred between November 2019 and January 2020 before the global disruption caused by the COVID-19 pandemic. The airline's sustained recovery is attributed to the resumption of critical routes and its strategic joint venture with Delta Airlines.

Impact of Joint Venture

The partnership between LATAM and Delta Airlines, initiated in October of the previous year, has proven to be a catalyst for both carriers. Aline Mafra, LATAM Brasil’s sales director, attributes the regained leadership to the "sustainable recovery of international operations" and the success of the joint venture with Delta. According to ANAC, LATAM secured an impressive 26% market share for flights between Brazil and the U.S. from August to October, surpassing American Airlines (22%) and United Airlines (20%).

Year-to-Date Trends

While LATAM's resurgence is evident in recent quarterly figures, the year-to-date statistics reveal American Airlines maintaining its lead with a 23.7% market share, slightly above LATAM's 22.4%. The ongoing competition underscores the dynamic nature of the aviation industry as carriers navigate recovery and changing passenger preferences.

Route Expansion and Future Outlook

LATAM's strategic resumption of non-stop flights between Sao Paulo and Los Angeles in August has positioned it as the sole provider of this route between Brazil's largest city and the U.S. West Coast. The airline aims to transport over 110,000 passengers annually on this route. Additionally, LATAM successfully launched Sao Paulo-Boston flights last year, with positive outcomes—74,000 passengers flown and an average load factor of 80%. The carrier continues to operate flights to Miami, Orlando, and New York.

Delta's Role and Future Initiatives

The collaboration between LATAM and Delta has been instrumental in increasing capacity by an impressive 75%. Delta's upcoming relaunch of flights from Rio de Janeiro to New York and Atlanta in December further underscores the optimism surrounding the recovery of U.S.-Brazil air travel. Despite ranking fifth in U.S.-Brazil traffic in 2023, Delta's strategic moves highlight its commitment to expanding its presence in this crucial market.

Conclusion

LATAM Airlines' resurgence as the market share leader in Brazil-U.S. flights reflects not only the airline's strategic decisions but also the broader recovery of international air travel. The joint venture with Delta Airlines has played a pivotal role in this comeback, emphasizing the importance of collaborations in navigating the complexities of the post-pandemic aviation landscape. As the industry continues to evolve, these developments underscore the resilience and adaptability of airlines in responding to shifting market dynamics.

With Inputs from Reuters

In a landmark meeting held on November 24, 2023, representatives from over 100 countries convened in Dubai to address the critical issue of emissions reduction in global aviation. The discussions, led by the International Civil Aviation Organization (ICAO), resulted in an interim goal of achieving a 5% reduction in carbon emissions from aviation by 2030. However, notable concerns were raised by countries such as China, Russia, and others, emphasizing the potential economic impact of this ambitious target.

Agreement on Emissions Reduction Goal

After five days of intense negotiations, the participating nations reached a consensus on the emissions reduction target, settling on a 5% decrease by 2030 through the utilization of cleaner energy sources, particularly sustainable aviation fuel (SAF). This goal, while slightly lower than the initial draft's range of 5-8%, is seen as a positive step towards mitigating the environmental impact of aviation, which currently contributes to approximately 2-3% of global carbon emissions.

United States' Perspective and Financial Implications

During the closing session, the United States expressed optimism about the agreed-upon goal, asserting that it sends a "clear and positive signal" to the financial community. The encouragement for investments in clean energy projects is crucial for achieving the emissions reduction target. The aviation industry estimates that between $1.45 trillion and $3.2 trillion in capital development for sustainable aviation fuel is required to attain the sector's net-zero emissions goal by 2050.

SAF as a Key Player in Emissions Reduction

Sustainable aviation fuel (SAF) emerged as a focal point in the discussions. While it is recognized as a key component in reducing carbon emissions from aviation, SAF currently represents less than 1% of total global jet fuel. The 5% target is expected to catalyze SAF projects worldwide, prompting the finance community and the energy sector to invest in infrastructure to scale up SAF production.

Challenges and Reservations from Some Nations

China, Russia, and other countries expressed reservations, citing potential increases in operating costs for airlines and concerns about discrimination against developing nations. China, committed to carbon neutrality by 2060, argued that the goal could threaten energy and food security. Saudi Arabia and Iraq, major oil producers and OPEC members, objected to both the target and the specified date.

Environmentalists' Concerns and Need for Binding Agreements

Environmentalists criticized the agreement for lacking binding measures, allowing airlines to potentially continue using lower-carbon fossil fuels. Jo Dardenne, aviation director at Transport & Environment, expressed skepticism, highlighting that ICAO lacks the mandate to enforce the 5% target.

Looking Ahead: Financing and Global Cooperation

The aviation industry's ambitious emissions reduction goals hinge on substantial financing. The estimated cost of $1.45 trillion to $3.2 trillion underscores the need for collaboration and financial support, particularly for developing countries. The discussions also shed light on the necessity of making financing more accessible to ensure sustainable aviation fuel production beyond regions like the U.S. and Europe.

Conclusion

The agreement reached in Dubai marks a significant step towards addressing the environmental impact of global aviation. While the 5% emissions reduction target is commendable, the concerns raised by certain nations underscore the delicate balance between environmental responsibility and economic considerations.

The path forward necessitates global cooperation, increased investments, and a commitment to overcoming challenges to ensure a sustainable future for the aviation industry. As the international community prepares for the COP28 climate summit, the outcomes of this aviation meeting may serve as a precursor to broader discussions on combating climate change.

With Inputs from Reuters