Jet Airways' lenders to get rental earnings from Jalan-Kalrock Consortium

Jet Airways, led by the new management, has for the time being averted liquidation proceedings by agreeing to transfer to banks about INR 130 crore received from the lease-rentals of Air Serbia planes, according to a recent report by The Economic Times.

Jet Airways owes a lot of cash to many lenders and stakeholders, including ex-employees and ticket claimants. So, any source of revenue for the airline is being carefully observed, with attempts being made to direct the funds to those demanding their money back.

ALSO READ - Lenders of Jet Airways threaten bankruptcy over aircraft rental revenues

Aircraft rentals to Air Serbia have, so far, yielded about INR 108 crore. The amount is parked with the SBI. The report said the banks conveyed to the winning bidder that they would apply for liquidation if lease rentals were not distributed to the verified lenders.

Jalan-Kalrock ready to pay aircraft rentals to Jet Airways' lenders

However, the Jalan-Kalrock Consortium, which has won the bid to acquire the company under the Insolvency and Bankruptcy Code (IBC), cannot place an order to buy aircraft until it obtains a no-objection certificate from its lenders.

According to the report, the lenders said they would give a NOC only after the consortium commits to a timeline for implementing the debt resolution plan, which involves staggered payment to gain ownership of the airlines.

The consortium has offered payments of INR 380 crore in instalments and a 9.5% stake in the airline company to the lenders. The National Company Law Tribunal (NCLT) had approved its plan in June 2021, but the consortium has not yet paid the lenders, the people said.

Jet Airways owes a lot of cash to many lenders and stakeholders, including ex-employees and ticket claimants.

Executives at the consortium denied facing any restrictions to going ahead with its plans. “This is absolutely incorrect, and the NCLT process does not restrict us,” said a spokesman for the consortium.

“Liabilities and timelines for the payment of liabilities of past lenders are fixed and have no relation to the new business which Jet Airways does, including placing an aircraft order. The intent of the IBC is to revive businesses and not restrict or liquidate them. A successful resolution applicant, that is Jalan-Kalrock Consortium, is free to make operational decisions or acquire new assets for the company’s revival, as per its business plan/needs and requirements."Spokesperson, Jalan-Kalrock Consortium

ALSO READ - Jalan-Kalrock consortium committed to bringing Jet Airways back to life

The consortium includes Murari Lal Jalan, an NRI based in the UAE, who will hold shares of Jet in his personal capacity, and Florian Fritsch, who would hold shares through his investment holding company – Kalrock Capital Partners, Cayman.

Jalan’s business interests are spread over the UAE, Brazil, India, Uzbekistan and the Philippines, according to the resolution plan.

The consortium has offered payments of INR 380 crore in instalments and a 9.5% stake in the airline company to the lenders.

“All the decisions are taken in consultation with a monitoring committee which has representatives from Jet’s lenders too. They have approved the leasing of aircraft to start operations afresh. There is no reason why they won’t say yes to purchase too,” said a person from the Jalan-Kalrock camp.

Lenders’ recovery equates to just 5% of their claims, thus limiting the downside if the company is liquidated.

The resolution professional, Ashish Chhawchha backed by Grant Thornton, has admitted INR 7,453 crore in claims from verified creditors.

Jet Airways was grounded in April 2019 due to its failure to pay for fuel and lease rentals.

Civil aviation regulator Directorate General of Civil Aviation (DGCA) reinstated Jet’s air operators’ certificate in May 20222. Jet Airways was grounded in April 2019 due to its failure to pay for fuel and lease rentals.

ALSO READ - Jet Airways to lease 6-8 aircraft by December; in talks with aircraft manufacturers and lessors

Jet Airways has been in superior spherical talks with airplane makers Airbus and Boeing to buy planes. Executives at each firm stated the talks had gone slower in the previous few weeks after the lenders raised points. In the meantime, the airline plans to start operations in September with leased planes.

ALSO READ - Jet Airways nearing a deal to buy 50 A220 jets from Airbus

(With Inputs from The Economic Times)

The country's largest carrier IndiGo has joined a sustainable initiative spearheaded by the World Economic Forum (WEF). The airline has become a signatory to the Clear Skies for Tomorrow, India Coalition campaign.

"IndiGo's commitment to the deployment of sustainable initiatives will help in achieving a significant scale for SAF (Sustainable Aviation Fuel) to gain a critical mass and bring in cost-efficiency for widespread adoption in India," it said in a release.

On February 18 this year, IndiGo operated its brand new A320 neo plane from Toulouse, France to New Delhi with a 10% blend of SAF.

IndiGo joins sustainable initiative spearheaded by the World Economic Forum

While SAF is yet to be approved for commercial flights, various test flights, powered by such fuel, have been operated. SAF will reduce carbon emissions.

Over a period from 2016 to 2023, the airline is aiming at a 16% reduction in carbon emissions, he said while speaking at an event at the airport to mark the arrival of the aircraft.

Clean Skies for Tomorrow, launched in January 2019, provides a crucial mechanism for top executives and public leaders, across and beyond the aviation value chain, to align on a transition to sustainable aviation fuels as part of a meaningful and proactive pathway for the industry to achieve carbon-neutral flying. The global coalition now has more than 80 members.

SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint.

The goal is to have commercially viable SAF production (both bio and synthetic) at scale for industry-wide adoption by 2030 to support aviation's overall net-zero pathway by 2050.

SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint.

Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle GHG emissions dramatically compared to conventional jet fuel. Some emerging SAF pathways even have a net-negative GHG footprint.

IndiGo currently has a fleet of 275 aircraft

Many SAFs contain fewer aromatic components, which enables them to burn cleaner in aircraft engines. This means lower local emissions of harmful compounds around airports during take-off and landing. Aromatic components are also precursors to contrails, which can exacerbate the impacts of climate change.

In July, IndiGo had a domestic market share of 58.8%. IndiGo currently has a fleet of 275 aircraft and all of them are narrow-body planes such as A320neos and A321neos with just economy class seats.

ALSO READ - The Indigo fleet in 2021, 2022 and beyond: Outstanding order explained

IndiGo had placed an order for 300 A320neo family planes, which include A320neo, A321neo and A321XLR, with Airbus in October 2019.

Three significant stakeholders in the aviation, hydrogen, and airport industries — Airbus, Air Liquide, and VINCI Airports — are collaborating to promote the use of hydrogen at airports and develop the European airport network to support future hydrogen aircraft.

The first installations will be located at Lyon-Saint Exupéry Airport (France) as early as 2023. This collaboration demonstrates the three organisations' united desire to pool their skills to help the decarbonization of air transport.

The partners have decided to use Lyon-Saint Exupéry Airport as the pilot airport. This airport serves as the centre of excellence for innovation at VINCI Airports. This project's implementation is divided into many stages:

The installation of a hydrogen gas distribution station at the airport of Lyon-Saint Exupéry will begin in 2023. This station will refuel the heavy cargo vehicles that travel around the airport as well as the ground vehicles owned by the airport (such as buses, trucks, handling equipment, etc.). The airport's capabilities and dynamics as a "hydrogen hub" within its service region must be tested during this initial phaseInfrastructures for liquid hydrogen will be installed between 2023 and 2030, enabling the provision of hydrogen into the aircraft's fuel tanksBeyond 2030: development of the hydrogen infrastructure from liquid hydrogen generation to widespread distribution at the airport

By 2030, the three partners will investigate the viability of putting the necessary hydrogen production, storage, and supply infrastructure in place at VINCI Airports' network of European airports for usage both on the ground and aboard aeroplanes.

Airbus ZEROe | Representative | WTM Global Hub

This collaboration represents a significant step toward the development of hydrogen throughout the airport ecosystem and demonstrates the parties' common commitment to decarbonizing air transport.

Airbus's expertise in commercial aviation, Air Liquide's mastery of the entire hydrogen value chain (production, liquefaction, storage, and distribution), and VINCI Airports' global reach as the top private airport operator with 45 airports across 12 countries are all relied upon to help build the desired network.

Air Liquide

Wikipedia

Air Liquide S.A. is a French multinational company which supplies industrial gases and services to various industries including medical, chemical and electronic manufacturers. Air Liquide's headquarters are in Paris, and it also has major sites in Japan, Houston, Newark, Delaware, Frankfurt, Shanghai and Dubai. The company's research and development (R&D) targets the creation of industrial gases, and also gases that are used in products such as healthcare items, electronic chips, foods, and chemicals.

VINCI Airports

As a global integrator, VINCI Airports develops, finances, builds and provides everyday operation of more than 50 airports in Europe, Asia and the Americas. It offers airport design, project management, traffic development, passenger services, and aeronautical activities.

SOURCE(s)

COVER: Aviation Week

Two Air France pilots were suspended after coming to blows in the cockpit of an Airbus A320 jetliner during a flight between Geneva and Paris, the latest safety issue to plague the airline.

The mid-air dispute occurred in June, according to a spokeswoman for the carrier who confirmed a report by La Tribune newspaper. The incident was resolved quickly, and the flight proceeded normally, the pilots are awaiting a decision by management on their "totally inappropriate behaviour."

The carrier responded with a pledge to carry out a safety audit and beef up post-flight analyses.

Air France pilots were suspended after a mid-flight fight in the A320 cockpit

The revelation of the physical altercation comes on the heels of a report published by France's civil aviation safety investigation authority, the Bureau d'Enquetes et d'Analyses, concluding that a series of lapses at the French arm of Air France-KLM pointed to "changes and even violations" of procedures leading to a narrowing of safety margins.

The Skyteam Alliance carrier confirmed the dispute and exchange of inappropriate gestures without further revealing the altercation's specifics. The source of the disagreement was not readily apparent and may be either a personal reason or a professional cause, such as the co-pilot's refusal to follow instructions.

In the June incident, a dispute between the pilot and co-pilot turned physical shortly after takeoff as the plane gained altitude, with the men taking each other by the collars after one possibly hit or slapped the other, according to the newspaper report.

The carrier responded with a pledge to carry out a safety audit and beef up post-flight analyses.

Cabin personnel heard a noise in the cockpit, intervened and one member spent the rest of the flight on the flight deck. The BEA said it wasn't notified of the incident because there were no consequences for the flight.

The report centred on a December 2020 flight from Brazzaville, in the Republic of Congo, to Paris, when the crew rerouted the plane to Chad and landed after discovering a fuel leak, but didn’t cut the engine or land as soon as possible, per leak safety procedures, which could have resulted in the engine catching fire.

The report cited three similar cases between 2017 and 2022, noting that pilots seem to be acting based on what they think is the best versus established safety protocols.

The BEA in April also opened an investigation into the cause of another Air France inflight incident it called "serious."

The crew skirted safety procedures and increased risks of a fire -- midair or on landing -- by not shutting down the leaking engine or opting to touch down at the closest airport, the report concluded. The aircraft landed safely.

The BEA in April also opened an investigation into the cause of another Air France inflight incident it called "serious."

ALSO READ - French investigators release an update on the Air France B777 approach incident

Pilots of a Boeing 777 airliner aborted a landing at Paris-Charles de Gaulle airport after telling air traffic controllers the plane was unresponsive at the approach when a pilot was heard saying it was "going nuts." The flight from New York landed safely on its second attempt.

The Union Ministry of Civil Aviation (MoCA) has planned to develop a helicopter emergency medical service (EMS) to provide speedy treatment to needy citizens.

The Ministry believes that helicopters in an EMS role can provide a crucial service that can deliver emergency care quickly within the 'golden hour'.

In EMS parlance, the golden hour is the period where access to definitive care within an hour of the occurrence of life-threatening trauma can make all the difference between life and death.

"Helicopters in EMS role can greatly expand the capability by expeditiously enlarging the medical outreach. It is later envisioned to incorporate a larger network to augment the land-based ambulances to increase the accessibility of trauma care services to a wider population base across the country.MoCA proposes to seek an Expression of Interest (EoI) from air operators who can offer one single-engine or twin-engine helicopter in an air ambulance role with EMS capability for six months based out of a helipad at AIIMS Rishikesh."Union Ministry of Civil Aviation (MoCA)

While issuing an expression of interest, the Ministry said that it intends to undertake a pilot project implementation of utilizing helicopters in the EMS role to explore the viability, benefits and risks, if any, to define the approach that can be adopted before larger resources are committed.

Interested air operators have been asked to submit their responses to this EoI by September 15, 2022. A certified air operator with at least one helicopter registered in its air operator permit can apply for the same.

Aviation Ministry to develop a helicopter emergency medical service at AIIMS Rishikesh

As per the document, the project would be located at AIIMS Rishikesh for six months which may be extended on a mutual consent basis.

The air operations would be governed by DGCA regulations and the requirements of CAR Section 8 Series S Part VII - Operation of Aeromedical Transportation (AMT) will be complied with for air ambulance operations.

The service will have one single-engine helicopter with the capacity to carry a single patient on a stretcher, one medical personnel inside the cabin and one pilot with carry-on medical equipment as required, and should be able to fly to a distance of 300 km without refuelling.

In EMS parlance, the golden hour is the period where access to definitive care within an hour of the occurrence of life-threatening trauma can make all the difference between life and death.

Since the area of operations includes mountainous terrain, the air operator should be able to provide a trained crew for the operations.

The helicopter will be based at the AIIMS Rishikesh helipad for the duration of the project and the air operator should make provision for necessary logistics.

It would be on daily stand-by service from sunrise until sunset with 20 minutes response time. The minimum assured hours of helicopter utilisation would be 45 hours per month.

Akasa Air informed on August 28 that it has suffered a data breach resulting in unauthorised individuals gaining access to user information. The airline, which started operations on August 7, has apologised to its customers and has “self-reported the incident” to CERT-In, according to a communication.

Apart from notifying the CERT-In, Akasa Air also sent emails on Saturday and Sunday to its passengers who had registered with the airline and shared their personal details.

Earlier, login and sign-up services were stopped by Air Akasa during the breach period, but they have resumed again to be available to new users.

Akasa Air operated its inaugural flight on August 7 from Mumbai to Ahmedabad.

The airline's communication on its website wrote: “A temporary technical configuration error related to our login and sign-up service was reported to us on Thursday, August 25, 2022.”

“Due to this configuration error, some Akasa Air registered user information limited to names, gender, email addresses, and phone numbers may have been viewed by unauthorised individuals. We can confirm that aside from the above details, no travel-related information, travel records, or payment information was compromised.”

“At Akasa Air, system security and protection of customer information is paramount, and our focus is to always provide a secure and reliable customer experience. While extensive protocols are in place to prevent incidents of such nature, we have undertaken additional measures to ensure that the security of all our systems is even further enhanced.We will continue to maintain our robust security protocols, engaging wherever applicable, with partners, researchers, and security experts from whom we can benefit to strengthen our systems."Anand Srinivasan, Co-Founder and Chief Information Officer, Akasa Air

After the incident, the following steps were taken by Akasa Air to mitigate risks for current and future scenarios:

To begin with, on being made aware of the data breach, the airline immediately stopped the unauthorised access by completely shutting down the associated functional elements of their system. Only after adding additional controls to address this situation, the login and sign-up services were resumed.

Akasa Air informed on August 28 that it has suffered a data breach resulting in unauthorised individuals gaining access to user information.

Akasa Air, which operated its inaugural flight on August 7 from Mumbai to Ahmedabad, said it immediately stopped the unauthorised access by completely shutting down the associated functional elements of its system.

“We self-reported the incident to CERT-In (which is the Government authorised nodal agency tasked to deal with incidents of this nature). We have also notified the affected users of the above, have informed such users that this matter has been reported to CERT-In (which is the Government authorised nodal agency tasked to deal with incidents of this nature), and have advised users to be conscious of possible phishing attempts.We would like to clarify that basis our records there was no intentional hacking attempt, but that a research expert reported the situation through a journalist for which we are grateful. As a part of our commitment to being always transparent, we proactively shared this information with our customers who could have been potentially impacted."Akasa Air

This is not the first time when an airline has faced a data breach. Indian carriers like IndiGo, Air India and SpiceJet have also seen their database being hacked in the last few years. 

ALSO READ – SpiceJet under attack by ransomware; morning flights affected

In May, SpiceJet was hit by a ransomware attack that significantly impacted its operations, leading to several flight cancellations and many more delays.

Air India suffered a major cybersecurity attack in 2021, affecting around 4.5 million passengers. On that occasion, critical information stored since 2011, such as credit card and passport details, was accessed by hackers.

Cover Image - Ishaan Wadhwa