Jet Airways lenders file appeal to NCLT against Jalan-Kalrock Consortium

Jet Airways lenders filed an appeal before the NCLAT against the Jalan-Kalrock Consortium's resolution plans on Tuesday, January 24.

Lenders of Jet Airways have requested a stay of the National Company Law Tribunal's (NCLT) approval of the sale of Jet Airways to the Jalan-Kalrock Consortium a few days after the NCLT issued its approval. On Monday, January 23, they contacted the NCLAT, saying that the winning bidder had not met certain previous conditions.

A few days after the NCLT approved the sale of Jet Airways to the Jalan-Kalrock Consortium, the lenders of Jet Airways asked for a stay of the NCLT's approval

About 10 days after NCLT's permission, the lenders appealed to the appellate bankruptcy court, asking for a delay on the transfer of the carrier's ownership to JKC, according to two people with knowledge of the development who was quoted by Economic Times.

“The lenders want the plan to be circled back to the Committee of Creditors (CoC) for fresh consideration.”

–Sources

The NCLT approved Jalan-Kalrock’s motion on January 13 to carry out its resolution plan for Jet Airways. Funding for the grounded airline's resuscitation was allowed by NCLT.

“It goes without saying that the plan approved by this tribunal has to be implemented without any modification much less than on the satisfaction of any other undertaking. And thus, the effective date and completion date of the condition precedent under the plan shall have to be read as May 20, 2022.”

–NCLT Order

It's important to note that the Jalan-Kalrock Consortium is currently involved in a separate legal dispute over a Rs 250 billion payment to former Jet Airways employees as the lenders to the grounded carrier have filed the NCLAT at this time.

If a senior banker is to be believed, the resolution plan cannot be put into action unless the DGCA approves parking slots and the acquisition of planes. "If this approval does not come now, we don't see how the company will start operations," the person told ET.

The DGCA's approval of parking spaces and the purchase of planes is required before the resolution plan can be implemented: A Senior Banker

Second, the majority of the lender payments are postponed. The company will pay the upfront sum, but the banker noted that if activities do not begin when we transfer the company to the successful bidder, they could not have the cash flow to pay the deferred amount.

In April 2019, Jet Airways ceased operations as a result of a financial issue. The airline thereafter went through an Insolvency and Bankruptcy Code (IBC) resolution process.

Jet's CoC approved the revival plan that the consortium had filed in October 2020. In June 2021, the NCLT approved the strategy.

In October 2022, the consortium filed a petition with the tribunal asking for confirmation subject to the satisfaction of five requirements: the approval of the Air Operator Certificate, the submission of a business plan, the approval of slot allotment, the clearance of international traffic rights, and the demerger of the ground-handling company.

However, the lenders rejected the application and objected to the transfer of control, claiming that the prerequisite conditions had not been met.

The consortium suggested an overall infusion of Rs 1,375 crore as part of the rehabilitation plan, including Rs 900 crore for Capex and working capital. Additionally, Rs. 475 crores will be used to pay creditors' claims.

JKC proposed an overall infusion of Rs. 1,375 crores, of which Rs. 900 crores would be allocated for Capex and operating capital, as a part of the rehabilitation plan

A sticking point between the two parties has been an appellate tribunal ruling from last October regarding the payment of approximately Rs 200 crore in gratuity and provident funds to the airline's former employees. The Supreme Court is now debating the matter.

Source: ET

According to civil aviation minister Jyotiraditya Scindia, the government is actively pursuing its goal of creating an international aviation hub in India and was already in advanced negotiations with a few Indian carriers and an airport in this respect. The minister was responding to a query from an industry representative at a civil aviation conference organised by the industry body ASSOCHAM.

He said since the exercise could only be accomplished in conjunction with both the airlines and airports, the ministry of civil aviation was doing its bit in turning the ambition into a reality of creating a hub for international and domestic passengers in India by utilising Indian airports and Indian aircraft.

ALSO READ - The government wants to create an aviation hub in India

“We are in talks with two to three airlines and an airport for the creation of an international hub in India. And for the creation of that hub, you got to take the volatility out of the arrival and departure plans and smoothen out that curve so that you can provide the incoming flights time to allow international departures.

Today, on domestic routes we are pretty much well settled. But on international routes, it is mostly Sixth Freedom [Right]. You have hubs located outside India. They use India as a transit point and then a long-haul flight takes you to your ultimate destination. It is important for our airlines to also start going from point to point."

Jyotiraditya Scindia, Union Minister of Civil Aviation

The Sixth Freedom of the Air allows a carrier the right to transport international traffic moving between two other states via its home state. For instance, Emirates is allowed to ferry passengers from India between India and the UAE to the US via its base in Dubai.

The government is actively working towards making India a global aviation hub - Scindia

ALSO READ - India to have 400 million air travellers and a fleet size of 1200 aircraft in the coming future

Referring to the significant growth being witnessed in the world’s third-largest domestic aviation market, the minister said India should be able to touch 400 million airline passengers in the next eight years, while it was just one airport short of doubling its airport capacity to 148 airports from just 74 in FY13-14. He added that given the fleet acquisition plans of Indian carriers, the total number of civilian aircraft in the country would reach anywhere from 1,500-2,000 over the next seven years from the present 700.

“That means you have reached capacity. You have reached a potential wherein you need to start sowing the seeds today of creating a hub within India,” the minister urged. It was with this objective that MoCA was actively persuading Indian carriers to launch point-to-point flights on international routes.

ALSO READ - Scindia working on a policy for regional airlines and helicopter operations to improve last-mile connectivity

The minister also praised Air India, Vistara, SpiceJet and other Indian carriers for ordering more wide-bodied aircraft as that would enable them to undertake flights above eight hours. He said that to help Indian carriers meet their short-term requirements, MoCA had allowed them to wet lease aircraft for an extended period of up to one year from the previous six months.

The minister also praised Air India, Vistara, SpiceJet and other Indian carriers for ordering more wide-bodied aircraft as that would enable them to undertake flights above eight hours.

ALSO READ - Government wants airlines to induct wide-body aircraft to reduce travel time

Under a wet lease agreement, the aircraft owner supplies the aircraft and one crew member and also takes care of maintenance, insurance and attendant legal responsibilities of operation.  

India's aviation ministry is keen to replicate the model of global aviation hubs such as Dubai and Singapore and is in talks with airports and airlines to take the plan further. The minister said that once the international hub was in place, it would be important not only to connect it with other international airports but also with Tier-II and Tier-III airports within the country for enhanced connectivity.

ALSO READ - India needs a global aviation hub airport for international flights

If the minister’s plan comes to fruition, the country would not only offer an alternative to rival international aviation hubs such as Dubai and Singapore in Asia-Pacific but also make international fares from India more competitive.

(With Inputs from Business Today)

Eaton and Crouzet have been chosen by Airbus to supply the CityAirbus NextGen EPDS and human-machine interface, respectively. The providers' extensive knowledge in flight deck controls and electrical power management will guarantee that the two subsystems are seamlessly incorporated into the prototype's architecture. The two components will also have a significant impact on the vehicle's capabilities because they are essential to the aircraft's performance, dependability, and safety.

Eaton and Crouzet bring a unique mix of aviation expertise to our journey with CityAirbus NextGen. From full electrification to advanced ways of piloting, they are key partners in our mission to develop the features that will make our eVTOL a true game-changer for air mobility- Stefan Hedtstück, Head of UAM procurement at Airbus, said

As the company in charge of designing the electrical power distribution system for CityAirbus NextGen, Eaton has organized its teams to find the best way to transfer electricity from the eight electrical power units in CityAirbus NextGen to the batteries that Airbus built. By making up for any loss in battery performance while the eVTOL is in flight, the power distribution system makes sure it is flying safely. Eaton is designing, analyzing, and manufacturing the power distribution unit that will be fully integrated within the electrical propulsion system of the Airbus prototype by drawing on the company's significant experience in electrification for the aviation industry.

We designed a high voltage, intelligent solution for the eVTOL’s electrical power distribution system in line with CityAirbus NextGen’s architecture- explains Tyler Ford, General Manager Engine Solutions and Electrification, at Eaton

This also holds true for Crouzet, who will install the piloting control unit in the flight deck of CityAirbus NextGen. The electromechanical and electronic components company, utilizing its extensive experience in flight deck controls, has created a brand-new human-machine interface concept that satisfies the most exacting standards for size, weight, and safety: the pilot will control the trajectory of the vehicle rather than the attitude of the aircraft. The sophisticated flight control system is then in charge of managing the actual control action on the propellers. Pilot workload is decreased as a result of the new piloting interface's radical simplification of flying.

Airbus and Crouzet jointly designed a cutting-edge human-machine interface that allows pilots to fly CityAirbus NextGen and to control peripheral functions such as the radio and the autopilot- explains Philippe Defrance, Marketing segment leader at Crouzet

As a result, the cockpit concept chosen for CityAirbus NextGen's cockpit is greatly enhanced by the human-machine interaction.

Electrified flight is a major milestone for this industry and a key-element of Eaton’s Aerospace strategy for the next decades. As an expert in power systems, selective coordination and power distribution, Eaton has a key role to play- emphasised Krishna Jonnalagadda, SVP and General Manager of Eaton’s Fluid and Electrical Distribution Division

https://www.youtube.com/watch?v=WFR3iUnMs-4&t=56s

Representative

In order to create a cutting-edge, creative eVTOL system that is safe, usable, and secure, Eaton has promoted the development of electrical flight via years of partnership with Airbus and by investing in base technologies including materials, processes, and controls.

SOURCE: Airbus

COVER: Airbus

Amazon announced the debut of Amazon Air, a specialised Air Cargo Service in India as it seeks to expand and speed up delivery in one of its key markets.

An Amazon Executive said on Monday, January 23, Amazon Air is attempting to increase and speed up delivery throughout one of its key markets as e-commerce sales there are rapidly increasing.

Also read: Amazon to launch dedicated cargo fleet in India

The e-retailer will ship items between Hyderabad, Bengaluru, Delhi, and Mumbai utilising two Boeing 737-800 aircraft operated by Quikjet Cargo Airlines. According to Sarah Rhoads, Vice President of Amazon Global Air, Amazon Air will allow the company to provide quick delivery to clients in India.

Amazon Air will ship items between Hyderabad, Bengaluru, Delhi, and Mumbai using two Boeing 737-800 aircraft operated by Quikjet Cargo Airlines

Amazon will have more control over costs and flight schedules as a result of the decision to deploy a dedicated cargo service, which will also speed up the delivery of a larger range of goods, according to Rhoads.

“When we use a dedicated network ... we have more transparency with the cost, we control the negotiations and we drive the schedule to make sure we are making the most efficient use of the assets.”

"We want to deliver the majority of shipments in two days or less and Amazon Air enables that."

–Sarah Rhoads, Vice President, Amazon Global Air

After the United States and Europe, India is the third country where the company has introduced Amazon Air. The Seattle-based company, which launched the service in the United States in 2016, has a network of more than 110 planes that travel to more than 70 locations around the world.

India is the third country where the company has introduced Amazon Air, following the United States and Europe

Amazon now uses one plane operated by Quikjet. This Bengaluru-based freight carrier is a division of Europe's ASL Aviation, and starting on Tuesday, it will use a second plane to deliver packages to cities including Mumbai, Delhi, Bengaluru, and Hyderabad. According to Rhoads, ASL manages a number of aircraft for Amazon throughout Europe.

The first cargo service was launched from Hyderabad on Monday, January 23. The service from GMR Aero Technic was introduced by Telangana IT and Industries Minister KT Rama Rao at the Rajiv Gandhi International Airport. He described it as a historic event for the state and the Indian e-commerce sector.

https://twitter.com/MinisterKTR/status/1617419115001700354

He claimed that additional vendors from Telangana and the rest of the nation would be added to Amazon's platform.

"We have been working towards strengthening the state's air cargo infrastructure, and we welcome the launch of Amazon Air which will further assist in making Hyderabad a cargo hub for the country and will create additional employment opportunities in the state.”

–KT Rama Rao, IT and Industries Minister, Telangana

He added that Air Cargo traffic from the city witnessed a 35% growth in volume in 2021.

KTR assured the state of its full support and stated that Hyderabad and Amazon's love affair had only just begun. He emphasised that Hyderabad is currently home to Amazon's largest campus in the entire world, its largest fulfilment centre in Asia, and its AS data centre, which has already announced an investment of 36,000 crores by 2030.

Hyderabad is currently home to Amazon's largest campus in the entire world & its largest fulfilment centre in Asia

According to KTR, Hyderabad was named the "Most Cost-Effective Aerospace City in the World" by the Financial Times global rankings, and Telangana earned the “Best State Award for Aerospace” from the Ministry of Civil Aviation three times in a row.

According to Akhil Saxena, VP (Of Customer Fulfilment), two planes with a capacity of 20,000 shipments, each would be operated in India. Additionally, the launch would benefit more than 11 million merchants in India, fostering the expansion of related industries including transportation and aviation.

Source: TOI

Tata group-owned AIX Connect, earlier known as AirAsia India, has allegedly violated aviation norms concerning pilot proficiency checks and instrument rating tests and is likely to face enforcement action from regulator DGCA, according to sources.

The sources told PTI that the alleged violations were detected by the Directorate General of Civil Aviation (DGCA) after it inspected the airline's main base recently. The sources said that the airline is alleged to have violated the norms about Pilot Proficiency Checks and Instrument Rating tests (PPC/IR) and could face a financial penalty of up to INR 1 crore.

AIX Connect violates aviation norms concerning pilot proficiency checks

"At the beginning when the airline (AirAsia India) started operations, there was a laid down set of proforma, which would be circulated to each pilot by the chief pilot (training standards). So there was no chance of missing any of these mandatory exercises," one of the sources said.

When contacted, an AIX Connect spokesperson acknowledged receiving the findings from DGCA and said the airline had taken corrective steps.

"We acknowledge that we received a finding from DGCA as part of our main base inspection in December'22 and have taken immediate corrective action through additional simulator sessions for our pilots in coordination with DGCA. Our training standards remain uncompromised with no deviation in safety margins, and we remain dedicated to ensuring the highest level of safety and quality in all facets of our operations."

Spokesperson, AirAsia India

However, when the practice of circulating proforma was discontinued abruptly, people started missing out there PPC and IR tests. DGCA detected this. According to the source, such violations can attract a financial penalty of up to INR 1 crore. There is also a provision wherein the DGCA can ask the airline to remove its chief pilot (training standards).

As per the Civil Aviation Requirement (CAR) Series F Part VIII, an air operator has to ensure that "each pilot undergoes seat-specific PPC and IR to demonstrate competence in carrying out normal, abnormal and emergency procedures on each type or variant of a type of aeroplane". A PPC can be carried out either on an aircraft or on a simulator twice a year.

In the beginning, when the airline (AirAsia India) started operations, there was a laid down set of proforma, which would be circulated to each pilot by the chief pilot (training standards).

However, according to the norms, for aircraft with less than five qualified simulators globally, the operator may seek DGCA approval to carry out PPC once in two years in the simulator while the intervening six-monthly PPC is carried out in the aircraft.

While the PPC should be undertaken after every six months, the IR checks should be taken after every 12 months, as per the CAR.

ALSO READ - DGCA fines Air India INR 30 lakh in urination case, pilot suspended for 3 months

Earlier this month, DGCA imposed a financial penalty of INR 30 lakh on Air India for non-reporting of the incident on its New York-New Delhi flight last November in which a drunk male passenger had allegedly urinated on a female passenger mid-air.

The air re-connectivity initiative at Bathinda is uncertain since Flybig Aviation Management has not yet developed a flying schedule.

The Airport Authority of India (AAI) granted permission to a newcomer to the Indian Aviation industry to operate a 19-seater aircraft on the Bathinda-Hindon in Ghaziabad route as part of the last-mile connectivity facility in September 2022.

AAI has granted permission to FlyBig to operate its aircraft on the Bathinda-Hindon route

The service would fall under UDAN (Ude Desh ka Aam Naagrik), a National Airport connectivity programme by the Central Government.

Official sources within the AAI confirmed that Flybig has been given the go-ahead to run an air taxi service on short-haul flights or ones that last up to three hours, and it is up to them to decide when they will begin operating the service to Bathinda.

According to Ajay Sahai Jasra, Head of Corporate Relations for FlyBig, the company will add two Twin Otter aircraft to its fleet by the end of January. These aircraft would mostly be used on routes in Uttar Pradesh.

FlyBig will add 2 Twin Otter aircraft to its fleet by the end of January

“It would be speculative to share a timeline of operations on the Hindon-Bathinda route. However, Flybig is committed towards operations on all routes awarded under UDAN.”

–Ajay Sahai Jasra, Head of Corporate Relations, FlyBig

In December 2016, the Region Connectivity Scheme (RCS) allowed Alliance Air (AA), a wholly-owned subsidiary of Air India, to operate a 72-seater aircraft on the routes Delhi-Bathinda and Bathinda-Jammu.

“With fully functional institutes like the All-India Institute of Medical Sciences (AIIMS) and the Central University of Punjab, Bathinda district had a lot of scope for growth in air connectivity, especially from Delhi or National Capital Region (NCR). We are looking forward to seeing when Flybig makes it functional as the market has potential.”

–An Official in Central Aviation Dept.

Alliance Air, Bathinda's lone air service provider, decided not to continue running its business after the agreement expired. Flights to Jammu were halted on October 27, 2019, while the airline stopped service on the Delhi route on November 28, 2020.

After RCS Agreement expired, Alliance Air, Bathinda's lone air service provider, decided not to continue running its business

The Bathinda-Jammu flight was operating five days a week, excluding Tuesday and Thursday, before the flight service was suspended. On AA flights, the average occupancy percentage on the Delhi and Jammu routes stayed between 70 and 80 per cent.

Regional airline FlyBig is headquartered in Indore, Madhya Pradesh, India. The airline's primary goal since starting operations in December 2020 has been to link tier-2 cities in India. Under the UDAN programme, Flybig offers connectivity to places that were previously inaccessible by air.

It only had one ATR-72-500 when it first started flying. The trip started on December 21, 2020, and the airline wet-leased a Dash 8 Q400 from SpiceJet to complete its obligations. Its maiden flight left from Indore and travelled to Ahmedabad, taking an hour and a half in total.

Currently, FlyBig operates in Kolkata, Guwahati, Tezu, Dibrugarh, Agartala, Pasighat, Patna, and Rupsi. Flybig flies to destinations that are worth a peaceful domestic journey. The airline successfully finished its first year of operations at Tezu Airport in August 2022. 

Currently, FlyBig operates in Kolkata, Guwahati, Tezu, Dibrugarh, Agartala, Pasighat, Patna, & Rupsi

FlyBig has a fleet size of 3 ??aircraft comprising ATR 72-500 & ATR 72-600 aircraft. The orders for 10 DHC-6-400 Twin Otters have been placed. 

The airline is concentrating on growing its network of routes, which will greatly increase the economic potential and tourism in the local areas.

Source: HT