Jet Airways send employees on leave without pay; cuts salaries up to 50%

The Jalan-Kalrock consortium (JKC) has sent 10% of the employees of Jet Airways on leave without pay (LWP) and reduced the salaries of another 23 per cent to cut costs as it waits for the airline’s handover under the ongoing process in the National Company Law Tribunal (NCLT).

Sources said a section of mid- and senior-level employees had been asked to work for a “reduced number of hours” at salaries reduced by up to 50 per cent. Employees in lower grades, cabin crew members, and pilots have not been affected, they said.

The airline, which wanted to resume flights by October, has about 250 employees on its rolls.

It went bankrupt in April 2019 under the old ownership. A resolution plan put forward by JKC was approved by the committee of creditors and the NCLT in October 2020 and June 2021, respectively.

However, ownership has not been transferred to JKC to date because the matter of clearing the previous employees’ provident fund and gratuity dues is under litigation.

JKC wants the State Bank of India-led consortium of lenders to pay them and has moved the National Company Law Appellate Tribunal (NCLAT) on this.

Jet Airways Chief Executive Officer Sanjiv Kapoor said on Twitter on Friday “no staff has been let go”.

“However with the ownership transfer timeline slipping due to factors outside our control, some temporary hard decisions had to be taken,” he added.

The team working to revive Jet Airways was not responsible for the airline running out of cash and suspending operations in 2019, he noted.

“They are trying to revive the airline using fresh capital, to give consumers more choices, to create more jobs and bring back old jobs. They deserve our full appreciation,” he mentioned.

In its statement, JKC said it had not breached any terms of the approved resolution plan and it remained committed to restarting Jet Airways.

After the NCLT’s approval in June 2021, all conditions outlined in the resolution plan were satisfied by May 20 this year and the necessary filings in this regard were made before the NCLT on May 21, it mentioned.

According to the resolution plan, the consortium has to infuse Rs 1,375 crore into the airline.

NASA is investigating cutting-edge Electrified Aircraft Propulsion (EAP) technology to drastically lower fuel consumption and pollution levels from single-aisle commercial aircraft carrying about 150 passengers in this new era of electric flight. In order to improve vehicle performance through innovative aerodynamic designs and technology, the Single-Aisle Turboelectric Aircraft with Aft Boundary Layer Propulsion (STARC-ABL) idea was created.

The STARC-ABL

In order to maximize aerodynamic benefits while in flight, STARC-ABL uses an innovative electric aft propulsor powered by two under-wing turbofan engines while maintaining a traditional turbine and airframe design.

NASA

This aircraft idea could potentially lower fuel use by 7–12% while operating with the same range, speed, and airport infrastructure as existing regional jets. It would also highlight the fundamental advantages of partly turboelectric propulsion systems for next-generation aircraft.

Maximizing performance and aerodynamic efficiency

A crucial initial step in decreasing drag, which slows down a vehicle and increases fuel usage, is controlling the airflow around it. Innovative boundary layer ingestion (BLI) technology, which is a characteristic of STARC-ABL, aids in controlling the boundary layer—a region of slower-moving air—near the aircraft's surface.

The NASA Electric Aircraft Testbed (NEAT) facility where STARC-ABL will be tested is depicted in an artist's impression | NASA

A BLI fan mounted on the vehicle's tail, which is integrated with the aircraft's propulsion system, aids in ingesting the layer of slower-moving and frequently more turbulent air. Then, to create thrust, this air is reaccelerated from the boundary layer at the surface of the airplane.

STARC-ABL relies on propulsion-airframe integration, or effectively integrating the propulsion system with the airflow surrounding the airframe, to obtain maximum performance (PAI). The aircraft's turbofan engines are equipped with generators that produce electricity and power the rear motor.

STARC-design, ABL's which features two wing-mounted turbofan engines and a rear motor, is visualized | NASA

Smaller wing-mounted engines can be used thanks to the novel addition of a rear motor that provides additional thrust, helping to reduce drag and fuel consumption while also reducing overall aircraft weight. The turbofan engines can produce megawatts of electricity in addition to thrust, which can be utilized to power the aircraft's electrical systems, including cabin conditioning and onboard instruments.

High-Efficiency Megawatt Motor (HEMM) is the generator used by STARC-ABL, which calls for an advanced 2-3 MW power system. The HEMM, a 1.4 MW electric machine, reduces drag and fuel consumption for STARC-AB and offers three times less heat and weight loss than contemporary aircraft motors and generators.

Image of the High-Efficiency Megawatt Motor created by an artist (HEMM) | NASA

During the concept plane's development, STARC-ABL will go through a lot of testing at the NASA Glenn Research Center's Electric Aircraft Testbed (NEAT).

Future airliners will be able to successfully transition away from conventional jet engines and toward a more sustainable future for aviation thanks to the technology revealed by this proposal.

STARC-ABL, which is expected to join the commercial fleet around 2035, will be crucial in showcasing the capabilities of turboelectric systems and parts for more environmentally sustainable air travel.

https://www.youtube.com/watch?v=dOK446jAsAw

SOURCE: grc.nasa.gov

COVER: NASA

FitsAir, a private low-cost carrier of Sri Lanka, will begin offering direct flights on the Colombo-Tiruchirappalli sector, 3 times a week, starting December 8.

The airline will run the services on the sector on Thursdays, Saturdays, and Sundays.

After Sri Lankan Airlines, which has been running its services on the Colombo - Tiruchi - Colombo sector for some time, FitsAir would be the second airline to do so.

https://twitter.com/aaiTRZairport/status/1592756134737498112?ref_src=twsrc%5Etfw

According to information provided by the airline, flights will depart from Bandaranaike International Airport on Thursday, Saturday, and Sunday each week.

FitsAir anticipates expanding its air routes to India and other nations in the future, as well as increasing the number of flights to ten weekly. In its next summer schedule, the low-cost airline will first begin operating flights between Trichy and Colombo, then Trichy and Jaffna.

The summer schedule will begin in March 2023 and in order to draw tourists from the neighbouring nation, Sri Lankan airlines reportedly plan to extend flight services to India.

On October 5th, FitsAir launched its inaugural flight from Colombo's Bandaranaike International Airport to Dubai International Airport using the aircraft A320-200. 

In addition to Colombo, FitsAir will also be based in Jaffna Airport and Ratmalana Airport, where it intends to establish a mini-hub and resume domestic flight operations. FitsAir appears to be on a highly successful roll for a low-cost carrier that only launched a few days ago as it seeks to serve top destinations like Dubai and India.

In particular, FitsAir's entry into the Sri Lankan aviation market comes at a critical time when the nation is grappling with a damaging financial crisis that is leading to a severe lack of foreign currency and fuel, which has forced several airlines to divert to other locations for refuelling or reduce capacity. The flag airline Sri Lankan Airlines is having trouble at the same time the low-cost carrier enters the market.

With FitsAir in the air, Sri Lankan Airlines would face intense competition since, from a business perspective, customers will already be drawn to the inexpensive tickets.

Sri Lankan Airlines was impacted by the Pandemic which prompted it to cut back a number of flights and due to the economical crisis, forced the govt. to sell off a portion of the airline

FitsAir's three times weekly service between Colombo and Tiruchirappalli is not as impressive in terms of routes as Sri Lankan Airlines' seven weekly offerings. Still, as the low-cost carrier begins ramping frequencies, the competition will heat up much more.

FitsAir's debut has received positive feedback so far since the low-cost carrier is viewed as a revolutionary glimmer of light in the approaching gloom of the nation's aviation business. Forecasts have even stated that FitsAir, with its present development, launch popularity, and solid financial position as a privatised carrier, could very well surpass the flag carrier. 

The flag carrier of Sri Lanka hasn't had a good run of things lately; in the past, the pandemic's impacts prompted it to cut back on a number of flights, and the country's present economic situation forced the government to sell off a portion of the airline. This may cause Sri Lankan Airlines to lose favour as FitsAir enters the picture, along with a new low-cost carrier.

FitsAir now has 8 aircraft in its fleet, but with plans to keep adding routes and locations, it is safe to say that the future is looking bright for this fledgling airline!

The Modi government may issue an Expression of Interest (EoI) request for the sale of AIESL (Air India Engineering Services Ltd.) by Jan-Feb 2023. When Air India was given back to Tatas, a number of the airline's subsidiaries were still under the control of Air India Assets Holding Ltd.

Despite the fact that Air India changed ownership, four of its subsidiaries, including AI Engineering Services Ltd (AIESL), AI Airport Services Ltd (AIASL), Alliance Air Aviation Ltd (AAAL), and Hotel Corporation of India Ltd (HCL), as well as non-core assets like artwork and artifacts, were not included in the transaction.

ALSO READ – EoI for the sale of Air India’s ground-handling division in the coming fiscal year

The privatization of AIESL and AIASL has begun, following the Indian government's long-standing desire to sell these assets as well. An EoI request, as a result, might be issued by the Government for the sale of AIESL by Jan-Feb 2023.

ALSO READ - Centre begins work on privatisation of Alliance Air & other Air India subsidiaries

On January 27, almost 69 years after it was taken from the conglomerate, the Indian government transferred ownership of Air India to the Tata Group.

According to people aware of the development, the Department of Investment and Public Asset Management (DIPAM) held roadshows for AI Airport Services (AIASL) and AI Engineering Services (AIESL) in September to gauge interest from potential bidders. The consulting company EY will be the transaction advisor for the sale process. 

ALSO READ – Celebi Aviation interested in bidding for Air India’s ground handling unit

According to industry sources, prominent participants attended the road shows. Several significant international firms, like Swiss ground handling company Swissport and Turkish firm Celebi Aviation Holding, participated in the ground handling unit alongside Indian firms like the Bird group and Tata Sons. Tata Sons and the Adani group also took part in the roadshow for AI Engineering Services.

According to government officials, these roadshows are being organized to get feedback from the business so that the EoIs can be written to generate more reactions. Additionally, two organizations have been chosen to physically inspect and tag the assets of the two corporations that are spread across Indian airports.

The roadshow for AI Engineering Services included participation from Tata Sons and the Adani Group, as well

In the meantime, business leaders believe that the Centre should quickly put both businesses up for sale because they benefit from having Air India as their main client.

A three-year lock-in period applies to the share purchase deal that was made between Tata Sons and the government during Air India's disinvestment, during which time the airline must continue to operate its operations with the ground handling and engineering unit.

An executive of an aircraft maintenance company stated that AIESL has expertise in a variety of fields, including base maintenance, line maintenance, and component overhaul services. It said, “AIESL is a great asset with a trained workforce and certification from major global original equipment manufacturers. We expect global companies to bid for the same.”

Airline Allied Services, or Alliance Air, is one of the four subsidiaries of Air India (AI)

Four of Air India's former subsidiaries, AI Air Airport Services, AI Engineering Services, Airline Allied Services or Alliance Air, and Hotel Corporation of India, along with non-core assets and other non-operational assets, were transferred to a special purpose vehicle called AI Assets Holdings as part of the disinvestment process.

Around January or February of the next year, the Central Government may issue an Expression of Interest (EoI) for the sale of AIESL. However, according to the sources, it might take longer to complete plans to sell the ground handling division of Air India Airport Services Ltd. (AIASL).

(With inputs from CNBC-TV18)

The top brass of Pratt & Whitney (P&W), the US-headquartered aircraft engine manufacturer, flew down to India last month to address customer concerns, scout new business and review investments in the country.

Pratt & Whitney recently paid a visit to India due to the inconvenience and negative publicity that several Airbus A320neos of IndiGo and Go First caused over the past few months. The engine manufacturer was in the nation to address the delays in the supply of engines and to look into other business possibilities.

According to information that has come to light, P&W president Shane Eddy and president of its commercial engine division Rick Deurloo spoke with representatives of the two budget carriers and assured them that they are working hard to find a solution.

Pratt & Whitney recently paid a visit to India due to the inconvenience and negative publicity that several Airbus A320neos of IndiGo and Go First caused over the past few months.

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

By the end of 2022, they predicted, things would be in better shape. They also emphasised that the aviation industry as a whole experiences supply-chain issues, not just them. In fact, due to disruptions in the world's supply, even Akasa Air had to reorganise some of its aircraft and modify its product offering by lowering the number of seats and changing the upholstery.

ALSO READ - Akasa Air modifies aircraft interiors amid facing global supply chain disruptions

In addition to speaking with airlines affected by the engine supply problems, Pratt & Whitney representatives travelled to India last month to look for additional business opportunities. The manufacturer of the engines provides engines to several Indian airlines, including IndiGo and Go First for their A320s and Alliance Air and SpiceJet for their turboprops.

A combined total of more than 50 aircraft from both airlines have been grounded because of a shortage of engines and spare parts.

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

In the past few weeks, several reports have highlighted the difficulties Go First and IndiGo have encountered as a result of grounded aircraft. To meet demand while Go First struggles to meet capacity and stay on schedule, IndiGo has turned to lease, which has prompted India's regulator, the DGCA, to look into the situation. A combined total of more than 50 aircraft from both airlines have been grounded because of a shortage of engines and spare parts.

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

According to Business Standard, Rajiv Bansal, the secretary for civil aviation, also met with P&W executives to discuss the issue and come up with potential solutions. The report claims that things will soon get better because Go First is expected to receive up to 16 engines this month alone, which should help to alleviate some of its current operational issues.

General Electric's joint venture with French engine maker Safran for CFM engines has improved its overall market share.

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.

One of the few engine manufacturers that are saturating the aviation market is Pratt & Whitney. General Electric and Rolls-Royce are the other two. Airlines frequently have to decide which engines to use when planemakers decide to offer a variety of options for their aircraft.

In India, where it defeated P&W to win the contracts to supply engines to hundreds of IndiGo aircraft, General Electric's joint venture with French engine maker Safran for CFM engines has improved its overall market share.

(With Inputs from Business Standard)

The super-wealthy in India now seems to be more at ease with their public persona and aren't afraid of splurging their wealth on private jets.

In order to travel as far as the US and Europe, several Indian businessmen are purchasing long-range business aircraft. Since the pandemic's spread, private aircraft companies have seen tremendous growth.

According to a Knight Frank survey, the number of billionaires in India increased at the fastest rate yet in 2021, by 19%, and their wealth increased by 21.4% to $384 billion. As corporate income increases, there is a tendency towards larger jets, and after COVID-19, consumers want exclusive ways of transportation.

According to data from the Airports Authority of India, private jet activity increased by 37% year over year from April through January of the previous fiscal year.

Long-range business aircraft are being bought by several super-rich Indians

The creator of AJM Jet Management, Atiesh Mishra, claims that the main driver behind India's super-rich purchasing these private planes, which provide more comfortable travel, is the globalisation of Indian business.

Mukesh Ambani owns at least three private aircraft, including a Boeing Business Jet for US$73 million, while Lakshmi Mittal spends millions of dollars annually on his Gulfstream.

Sun TV, owned by media mogul Kalanithi Maran, the Adani Group, and Cyrus and Adar Poonawallas, owners of Serum Institute of India, are a few companies that have lately purchased larger jets.

Out of the three, Sun TV has invested $75 million in the Bombardier Global 7500, which has a 7,700-nautical-mile range. The Poonawallas (Cyrus and Adar) purchased the same aircraft last year, while the Adani Group purchased a Bombardier Global 6500 this year with a range of 6,600 nautical miles and priced at $56 million.

The globalisation of Indian business is the key reason why Indian business owners are buying long-range private jets

“People who have a business, travel to the UK or Europe and need a minimum range of 9-10 hours of non-stop flying and that is why we have invested and got these aircraft.”

–Adar Poonawalla told ET

The Jindal Group and Hero Group are two additional companies that own long-range business aircraft.

Other businesses that have invested in long-range aircraft include the Jindal Group, controlled by Navin Jindal, which bought a Gulfstream G650ER with a range of 7,000 nautical miles, and Hero Group, which bought a Falcon 8X with the same range.

“Globalisation of Indian business is the key reason why Indian business owners are buying long-range private jets. The other reason is that these new generation long-range jets offer better cabin comfort like a private bedroom, low cabin altitude, fresh air recycled, and high-speed internet connectivity.”

–Atiesh Mishra, founding father of enterprise aviation options firm AJM Jet Management

According to Mishra, several Indian businessmen own long-range business jets that are parked in the UAE and are registered in the Cayman Islands, the US, and San Marino. The reason behind this is having a non-Indian registry gives them flexibility in operations, and the ability to fly at shorter notice as most countries do not require permits for aircraft under these registrations.

“Ultra-long-range jets are now fast becoming the preferred business aircraft for the ultrarich.”

–Rajesh Bali, managing director of the Business Aircraft Operators Association (BAOA).

ALSO READ - High demand for private jets throws carbon emission goals talks out of the window

(With inputs from The Economic Times)