Jet Airways conducts test flight after more than 3 years

Radhika Bansal

06 May 2022

Jet Airways conducted its test flight to and from the Hyderabad airport on Thursday, May 5 in a step towards obtaining the air operator certificate. It was conducting a test flight during which it flew for 1 hour 38 minutes over Hyderabad.

Jet Airways was taking to the skies again after a three-year hiatus. On its 29th birthday, the airline completed a test flight. The aircraft was operated by Jet Airways pilots Manav Gupta, Ankush Sharma, and Vishesh Oberoi and flew under the code 9W-101.

https://twitter.com/jetairways/status/1522249763927695362

Jet Airways, which has not flown since April 17, 2019, is currently in the process of re-launching operations under its new promoters Jalan-Kalrock Consortium.

On Thursday, May 5, the airline’s CEO Sanjiv Kapoor said on Twitter that the test flight’s operation was a very emotional moment “for all the wonderful folks who have been working hard to get Jet back in the skies”. The flight was a test flight, not a proving flight, he clarified.

“The aircraft will position to Delhi this evening. Proving flight to be scheduled in the coming days from Delhi,” he added.

https://twitter.com/jetairways/status/1522159887291420672

A test flight is conducted to prove to the aviation regulator DGCA that the aircraft and its components are operating normally. The test flight was conducted with Boeing 737 aircraft of registration code VT-SXE.

After the test flight, an airline has to conduct proving flights after which the Directorate General of Civil Aviation (DGCA) will grant the air operator certificate (AOC).

Proving flights are similar to commercial flights with DGCA officials and airline officials as passengers and cabin crew members on board. Under DGCA laws, Jet will be required to conduct a minimum of five flights on the route they intend to operate.

Jet Airways conducts test flight after more than 3 years

Early this year, the aircraft was de-commissioned by SpiceJet following which the new management of Jet Airways took the aircraft. Following the test flight, the aircraft flew to Delhi from Hyderabad where it will conduct a proving flight under the inspection of DGCA officials.

Incidentally, 29 years ago, Jet operated its flight on May 5. The airline ceased operations in April 2019 due to mounting debt. Following the insolvency resolution process under the bankruptcy code, a consortium of UAE- based businessman Murari Lal Jalan and the UK-based Kalrock consortium emerged as the owner.

ALSO READ - Jet Airways returning with a hybrid premium and no-frills model, first flight likely by October 2022

Jet Airways was founded by ticketing agent-turned-entrepreneur Naresh Goyal in the early 1990s.

The new owners of Jet Airways are Dubai-based, Indian-origin businessman Murari Lal Jalan and Florian Fritsch, the chairman of London-based financial advisory and alternative asset manager Kalrock Capital Management Ltd. Jet Airways was founded by ticketing agent-turned-entrepreneur Naresh Goyal in the early 1990s.

Jet Airways operated earlier from Delhi with a training and development centre in Mumbai. In February 2016, it was one of India's largest airlines, with a 21.2% passenger market share. It flew over 300 flights daily to 74 destinations around the world.

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Swiggy teams up with Garuda Aerospace to begin trial runs using drones to deliver groceries

Radhika Bansal

06 May 2022

Swiggy has entered into a partnership with Garuda Aerospace to begin trial runs using drones to deliver groceries in Delhi-NCR (National Capital Region) and Bengaluru, Karnataka. The pilot project will assess the viability of using drones in Swiggy's grocery delivery service Instamart.

Swiggy teams up with Garuda Aerospace to begin trial runs using drones to deliver groceries

The drones will be used to replenish inventory between seller-run dark stores and a "common customer point." Swiggy, in a blog post, said that a delivery partner will then pick up orders from the "common point" and deliver them to the customer.

Swiggy has selected four firms for the trials and will launch the pilot in two stages. Garuda Aerospace will handle Bengaluru while Skyeair Mobility will take Delhi-NCR in the first phase. ANRA, TechEagle Consortia, and Marut Drontech will come in the second.

https://twitter.com/garuda_india/status/1520275261518151680

Garuda Aerospace, in a statement, said that the development came in response to the request of the Swiggy Proposal (RFP) that had floated a few weeks ago. "The food delivery platform says that they receive 345 registration in total, and select four."

Founder CEO of Garuda Aerospace Agnishwar Jayaprakash called this partnership a "dawn of a new era in drone deliveries" and added that with cities getting more crowded, startups like Swiggy have understood how Advanced Garuda Aerospace drones can play a role in urban mobility and logistics via air to cut down-time of deliveries.

The pilot project will assess the viability of using drones in Swiggy's grocery delivery service Instamart.

Currently, as per the company's statement, valued at USD 250 million, Garuda Aerospace is India's most valuable drone startup with plans to manufacture 1,00,000 indigenous made-in-India drones by 2024.

The company further said that it also provides a wide array of drone tech services that aim to increase efficiency and reduce costs.

Garuda Aerospace Manufacturing Facilities in Gurgaon and Chennai were recently inaugurated by Prime Minister Narendra Modi during the launch of the Garuda Aerospace Kisan Drone Yathra, a Monumental spectacle that saw 100 drones taking off simultaneously in 100 villages across the country.

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India and Canada to operate more flights by expanding bilateral air service agreement

Radhika Bansal

05 May 2022

India and Canada on Wednesday, May 4 discussed the expansion of a bilateral air service agreement that will allow more flights between the two countries.

Union Aviation Minister Jyotiraditya Scindia, who is on a nine-day visit to the US and Canada, met Canadian Transport Minister Omar Alghabra.

"I personally thanked my counterpart for India’s help in repatriating Canadians stuck in India at the beginning of the pandemic,” Alghabra stated on Twitter after the meeting. Alghabra said he had a productive meeting with Scindia regarding issues of mutual importance to Canada and India.

https://twitter.com/OmarAlghabra/status/1521613161882963969

Canada has a huge number of people of Indian descent in its total population.

"We spoke about expanding the Air Transport Agreement allowing for more flights between the two countries. Further cooperation at International Civil Aviation Organisation (ICAO) on Annex 13 and other issues,” he mentioned.

He said he is looking forward to more conversations to open up travel between the two countries including flights to Amritsar.

India and Canada to operate more flights by expanding bilateral air service agreement

For the airlines of a particular country to operate international flights to another country, the two sides have to negotiate and sign a bilateral air services agreement, which decides how many flights (or seats) per week can be allowed to fly from one country to the other.

Once such an agreement is signed, each country is free to allocate the bilateral rights to its respective airlines. Even after such flying rights are allocated to an airline, it must have slots at both airports to start flight operations.

A slot is a date and time at which an airline’s aircraft are permitted to depart or arrive at an airport. The slots are allocated by a committee that consists of civil aviation ministry and regulatory officials, airport operators and airlines, among others.

At present Air India and Air Canada operate 29 non-stop flights per week between Canada and Delhi.

At present Air India and Air Canada operate 29 non-stop flights per week between Canada and Delhi. There are demands to start direct flights between Amritsar and Canada while Mumbai airport is looking to re-establish a connection with Canada.

However, the launch of new routes would also depend upon the geopolitical environment. In fact, Air Canada is suspending its thrice-weekly Vancouver-Delhi service from June because of restrictions on the use of Russian airspace.

Scindia is on an official visit to the US and Canada has met business leaders

Apart from the plan to increase air connectivity, the two ministers also discussed furthering technical cooperation in civil aviation. Scindia who is on an official visit to the US and Canada has met business leaders, visited manufacturing plants and also articulated India’s efforts on lowering carbon footprint in aviation.

ALSO READ - All Indian airports to be carbon neutral in near future – Jyotiraditya Scindia

“India is working towards making its airports carbon neutral shortly to emerge as a responsible player in the international civil aviation industry,” Scindia said.

India on the other hand committed in the COP-26 meeting in 2021 to achieve net-zero emissions by 2070 and is of the view that de-carbonisation efforts should be equitable for all countries.

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Hyderabad International Airport to be operated by the GMR group for the next 30 years

Radhika Bansal

05 May 2022

The term of the GMR Hyderabad International Airport (GHIAL) concession pact for the Rajiv Gandhi International Airport (RGIA) has been extended for another 30 years, the company informed the exchanges. Hyderabad airport is the fourth biggest airport in the country.

The airport, a step-down subsidiary of GMR Infrastructure (GIL), received a letter of confirmation from the Ministry of Civil Aviation (MoCA), it said in a filing on May 4. The extension is from March 23, 2038, up to March 22, 2068, for terms of the agreement dated December 20, 2004.

The airport was commissioned in a record 31 months and inaugurated in March 2008 with an initial capacity of 12 million passengers per annum (MPPA), which jumped to 21 MPPA before the Covid-19 pandemic in 2019. The present expansion will raise the capacity to 34 MPPA.

Hyderabad International Airport to be operated by the GMR group for the next 30 years

It is India’s first Greenfield airport under the public-private partnership (PPP) model and is currently the only Indian airport with an end-to-end digital passenger processing system, the company said.

Hyderabad Airport is now at the forefront of leveraging technology to deliver a seamless and enhanced experience to travellers. It is the first airport in India to introduce a unique e-boarding solution.

In terms of cargo, the airport can handle 150,000 tonnes of cargo per annum. The master plan envisages flexibility to increase ultimate capacity to more than 100 MPPA in phases.

Hyderabad International Airport is India’s first Greenfield airport under the public-private partnership (PPP) model

RGIAL is a “gateway” to the south and central India, the company said, adding that it has “established the city prominently on the global aviation map” and “continues to contribute to the prosperity, growth and all-round economic development of the region”.

GMR Group says it is the largest private airport operator in Asia and the second largest in the world with a passenger handling capacity of over 18.9 crores annually. It operates airports in Delhi, Hyderabad and Cebu in the Philippines.

It recently bagged the development and operation rights of Kualanamu International Airport in Medan, Indonesia. The Group is currently developing three greenfield airport projects — Goa and Bhogapuram airports in India and Crete airport in Greece.

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DGCA to begin conducting night inspections of the cabins of older planes

Radhika Bansal

05 May 2022

The Directorate General of Civil Aviation (DGCA) will be dispatching teams to check each aircraft thoroughly with common complaints being broken hand rests, meal tables, window panes and torn seats.

Carriers in India with weak finances and/or an ageing fleet will now have their aircraft cabins and the aircraft thoroughly checked when parked at night across major airports in India, reports say.

Aircraft with issues that could potentially affect the safety of the traveller will be grounded and allowed to fly again only after the problems are addressed, a senior regulatory official told TOI.

DGCA to begin conducting night inspections of the cabins of older planes

Following tweets of shabby interiors, DGCA recently grounded a SpiceJet Boeing 737 in Bengaluru and an Air India Airbus A320 in Kolkata.

ALSO READ – SpiceJet grounds its B737 aircraft after passenger complains about the cabin’s poor condition

Last month, authorities ordered a SpiceJet Boeing 737 airplane to be grounded following a passenger’s tweet, which contained not-so-impressive pictures of the plane. The images showed scruffy cabin interiors and questionable conditions of some panels that appeared broken or missing.

ALSO READ - DGCA asks Air India to repair its aircraft’s shabby interiors

A few days later, another passenger on an Air India flight took pictures of the Airbus A320’s shabby interiors, including a broken armrest, and posted them on social media. The DGCA asked the airline to check and rectify the problem as soon as possible.

DGCA recently grounded a SpiceJet Boeing 737 in Bengaluru and an Air India Airbus A320 in Kolkata.

“Now we will do this regularly at night time when the planes are parked. If anything that could affect safety is detected, the planes will be grounded till the airline rectifies the deficiencies,” said a senior official.

The formal exercise has begun with low-cost SpiceJet. The budget carrier’s promoter Ajay Singh met top DGCA officials including DGCA Arun Kumar and his deputy & head of safety Maneesh Chopra.

“(Exhaustive checks) are in progress. We have covered about half the fleet (of SpiceJet's 70 aircraft). Deficiencies are being identified and addressed. Will not let an aircraft with any safety issue fly without it being properly attended. We expect things to improve shortly."Arun Kumar, DGCA Chief

After SpiceJet’s 70 aircraft are checked on a priority basis, the DGCA teams will turn their focus on other Airlines. First to come under the scanner are airlines with weak finances and/or old aircraft.

In the past, DGCA used to conduct financial audits when a particular airline/s used to be under severe financial stress. Kingfisher, for instance, underwent this exercise in 2010.

DGCA used to conduct financial audits when a particular airline/s used to be under severe financial stress.

None of the Indian carriers had strong balance sheets before 2019-end, with the sole exception of IndiGo which had healthy cash reserves. Covid’s devastating effect on air travel further weakened all airlines, including taking IndiGo — the only sustainably profitable airline till the start of 2020 — into deep losses.

“Today every airline has weak finances. Only a few airlines are part of cash-rich groups (like the Tatas now having several airlines in its fold). Conducting a financial audit will reveal what is already known. The better option under these special pandemic circumstances is to bring all aircraft under the scanner, each one of each airline by prioritising checks of those belonging to airlines that are financially weak airlines and/or have ageing aircraft,” a person in the know told TOI.

(With Inputs from The Times of India)

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Mumbai Airport raises USD 750 million in debt funding from Apollo Global

Radhika Bansal

05 May 2022

Mumbai International Airport Ltd (MIAL) has raised USD 750 million via dollar-denominated bonds from credit funds managed by private equity firm Apollo, Adani Enterprises announced in a filing with indices on April 4.

MIAL owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, the second largest airport in India. MIAL is a step-down subsidiary of Adani Airport Holdings, a company incubated by Adani Enterprises.

Mumbai Airport raises USD 750 million in debt funding from Apollo Global

The funds are primarily meant for refinancing the airport's short-term debt. The money has been raised in the form of senior secured private placement notes, usually used by institutional investors to lend to companies just like banks.

"Apollo's credit business was able to provide a scaled, long-term capital solution for MIAL, with the majority of proceeds from the 7.25-years, USD 750 million notes," MIAL said in a statement. The company will use the funds to refinance shorter maturity loans and for new capital expenditure.

MIAL is a step-down subsidiary of Adani Airport Holdings, a company incubated by Adani Enterprises.

"This issuance by MIAL marks the first step in its capital management plan. Adani Airport Holdings will continue to diversify sources of financing through access to different pools of capital," Adani Enterprises said in the filing.

“We are pleased to work with the Adani’s to provide a comprehensive, long-term capital solution for MIAL, a mission-critical infrastructure asset in India.Amid significant market volatility, our ability to commit to the entire transaction and take a long-term view reflects some of the key strengths of Apollo’s global credit platform and perpetual capital base.”Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt

Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisors to MIAL for the issuance, while Linklaters and Talvar Thakore and Associates acted as legal advisors to Apollo.

“We are set to transform the Mumbai airport from a functional transit point into a vibrant, full-fledged business, hospitality and leisure ecosystem for Mumbaikars and the region.”Prakash Tulsiani, CEO, Mumbai International Airport Ltd (MIAL)

In July 2021, Adani Group took over the operations of MIAL from GVK. In the same month, MIAL’s board approved proposals to issue and allot redeemable non-convertible debentures worth around INR 4,000 crore to banks and financial institutions — including Barclays Bank, Deutsche Bank, JP Morgan and Standard Chartered Bank.

The debentures carry a coupon rate of 10.75-12% and have a tenor of 12-25 months and are secured by a pledge from Adani Group’s 74% stake in MIAL and a charge on various assets.

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