Lufthansa set to launch a new airline "City Airlines" by mid-2023

Lufthansa Group is rolling out a new airline in its lineup, City Airlines, which will combine the quality of Lufthansa and the experience of Lufthansa CityLine. All three airlines plan to work in close coordination, with the launch scheduled for mid-2023.

The brand-new website for City Airlines, the newest airline to join the Lufthansa Group, is already operational. The airline will begin operations in mid-2023 and fly to "important European cities and isolated regions," though an official opening date has not yet been announced.

According to Aviator, the regional carrier will use an Airbus fleet - likely A319s and is actively recruiting new employees. The "quality of Lufthansa" and the "experience of Lufthansa CityLine," another division of the Lufthansa Group, will apparently be combined by City Airlines.

Lufthansa set to launch a new airline "City Airlines" by mid-2023

City Airlines will, however, harness the "dynamism of a new young enterprise," according to the carrier's website. The carrier will operate short- to medium-haul routes (both international and domestic)

City Airlines GmbH was founded in Munich, which will act as the carrier’s hub, during the summer of 2022 according to the website.  City Airlines will focus on short and medium-haul routes, expanding the European route network within the Lufthansa Group. 

On the airline’s website, the Lufthansa Group writes: “We expand the European route network in the Lufthansa Group and bring you to your destination in our modern and economical Airbus fleet. Behind the company is a highly professional team in the cockpit and cabin, characterized as much by training by Lufthansa standards as by its great diversity.” 

City Airlines is looking for a “highly professional team of colleagues” with various skills and backgrounds, who can “think outside the box”. 

Lufthansa Group chief Carsten Spohr had signalled, early last year, that the company was intending to obtain a new air operator’s certificate for a “second CityLine”, which would probably have a similar-sized fleet. The company had planned the division to accommodate former Germanwings crews. Spohr had also pointed out that CityLine will not be permitted, under a union agreement, to operate aircraft with more than 75 seats from 2026, and that the new operation will offer an alternative.

Lufthansa had planned to hire former Germanwings pilots under contracts with lower wages compared to those offered by other airlines in the group. But the plan was met with opposition. It is worth noting that Germanwings ceased operations in 2020.

Lufthansa CityLine based in Munich Airport is a wholly owned subsidiary of Lufthansa and maintains hubs at Frankfurt Airport and Munich Airport, from where it operates a dense domestic and European network as a member of Lufthansa Regional.

ALSO READ - Lufthansa orders 22 new long-haul aircraft from Boeing & Airbus for USD 7.5 billion

Cover Image - Felix Gottwald 

Aéroports de Paris and GMR Airports Infrastructure Ltd. agreed to fold their joint-venture company into GMR, giving ADP a liquid stake in a business that owns airfields in India.

ADP and GMR Airports Infrastructure own 49% and 51%, respectively, of the unlisted GMR Airports Ltd., according to a statement Sunday from the French company, which operates Paris’s Charles de Gaulle and Orly.

Combining GMR Airports Infrastructure and GMR Airports will simplify the capital structure of the unlisted company, allowing the combined entity to capture new business more easily, the companies said. The companies said the merger will take place in the first half of 2024. ADP would hold a 45.7% stake in the combined GMR Airports Infrastructure and GMR Airports.

This merged entity – which would be called New GIL – would be 33.7%-owned by GMR, and 32.3%-owned by Groupe ADP, with the rest publicly-held.

But Groupe ADP would have a 45.7% economic interest in New GIL, against GMR’s 27%, and the public’s 27.3% if optionally convertible preference shares are taken into account. This will allow Groupe ADP to retain a “substantial interest” in the performance of the asset, says the company.

“Demand for air travel has picked up substantially, which will speed up airport privatization initiatives of the respective governments across the world,” GMR said in a separate statement.

The merged company, “with an improved balance sheet, will be in a much stronger position to further scale up the airport business by judiciously participating in profitable opportunities mainly in India, South Asia, Southeast Asia and the Middle East.” GMR’s portfolio includes airports in Delhi and Hyderabad.

ADP will invest €331 million ($353 million) in foreign currency convertible bonds issued by GMR Airports Infrastructure, with the proceeds used by the Indian company to clear its balance sheet by repaying corporate debt and also settling a significant part of its liabilities. The investment will lead to a cash expense of the same amount in the coming weeks, ADP said.

The deal is in line with ADP’s strategy of selective international growth, and the French company confirmed its objective for net financial debt to be 3.5 to 4.5 times earnings before interest, tax, depreciation and amortization in 2025. It also confirmed its dividend policy of a 60% payout ratio on earnings for 2023-2025, with a minimum of €3 a share.

“In India, in particular, privatisation projects have been announced by the government. To fully exploit those growth opportunities, the merger of GAL and GIL would allow New GIL to form a more agile platform able to capture this profitable development potential.”

The company said that one of the main reasons for the merger was strengthening the strategic relationship with Groupe ADP which will now hold a stake in GMR Airports Infrastructure as a result of the merger. The issue of FCCBs to Groupe ADP is expected to reduce the cost of capital.

“Going forward, an improved balance sheet will facilitate greater access to growth capital at lower cost,” the company said. “Groupe ADP’s subscription to FCCBs is a testimony to the strength of the  relationship between GMR & Groupe ADP.”

Repaying corporate debt and settling the majority of the contingent liabilities related to GMR Power would deleverage its balance sheet.

The merger would add value to shareholders since they would ”move closer to the airport assets and cash flows” removing the holding company-subsidiary structure to which the market usually assigns a discount. The merger is expected to be completed in the next financial year, subject to all other statutory approvals.

ALSO READ - GMR to separate Airports Division into a separate entity

Air India, the national carrier of India, has been facing a major challenge in recent times due to a pilot shortage that has resulted in long delays for its overseas flights. The airline has been forced to cancel several flights, affecting thousands of passengers, and it has been struggling to find a solution to this growing problem.

Air India has been facing increasing complaints from passengers about long delays in flights, especially ultra-long-haul flights like those to US destinations. The root cause of these inadvertent delays is an acute shortage of pilots appears as the most likely reason.

The pilot shortage is not a new issue for Air India. The airline has been grappling with this problem for some time now, and it has been a major impediment to its growth and profitability.

Pilot shortage most likely causing long delays in Air India's overseas flights.

The impact of the pilot shortage has been most acutely felt in Air India's overseas operations, where flights have been delayed or cancelled, leading to frustration and inconvenience for passengers.

Air India's fleet has increased sharply since the Tatas took over. Many of the grounded aircraft have been serviced and put back in the air. Air India signed lease agreements for 36 aircraft to augment its expansion plans, many of these planes are also being added to the fleet.

The airline needs 1,850 pilots to fly 114 aircraft. Air India currently has only about 1,600 pilots, and this shows a clear shortage in the required critical manpower.

While the capacity is being expanded, sources tell pilots and crew strength are not at par with aircraft addition.The airline currently has 114 aircraft of which 68 are narrow-body planes and 46 are wide-body planes including 19 Boeing 777s and 27 Boeing 787s. Each 777 requires 26 pilots and the 787 requires 20 pilots. So 46 wide-body planes need 1,034 pilots.

Adding these numbers tells us that the airline needs 1,850 pilots to fly 114 aircraft. But we learn that Air India currently has only about 1,600 pilots, and this shows a clear shortage in the required critical manpower.

The airline needs 1,850 pilots to fly 114 aircraft.

The pilot shortage at Air India is a reflection of a broader problem facing the aviation industry. The demand for pilots is expected to increase in the coming years as more airlines expand their operations, and the competition for talent is likely to intensify.

In conclusion, the pilot shortage at Air India is a significant challenge that is affecting the airline's operations and causing inconvenience to passengers. While the airline is taking steps to address the problem, a long-term solution will require the concerted efforts of the industry as a whole.

Only by addressing the underlying causes of the pilot shortage can the industry ensure a steady supply of qualified pilots and maintain the high standards of safety and efficiency that passengers expect.

Kuwait's Jazeera Airways is starting a budget airline in Saudi Arabia along with its partners in the kingdom.

In a statement on Tuesday, Jazeera Airways said the low-cost airline, to be based at the King Fahd International Airport in Dammam, is being established in line with Saudi Arabia’s Vision 2030 economic transformation programme, which seeks to expand the tourism and aviation sector.

“Co-ordination is under way with the regulatory authorities in the kingdom to complete procedures to obtain the necessary licences in accordance with the applicable laws.”

Jazeera Airways said.

The announcement comes days after Saudi Crown Prince Mohammed bin Salman announced the creation of new national airline, Riyadh Air, on Sunday.

Jazeera Airways, whose first flight was on October 30, 2005, posted a record annual profit for 2022.

Riyadh Air will be wholly owned by Saudi Arabia's Public Investment Fund (PIF), which has about USD 620 billion in assets under management and backs strategic sectors central to the kingdom's economic diversification plans.

Saudi Arabia's second national airline will connect the capital Riyadh to more than 100 destinations around the world by 2030, leveraging the country's strategic geographic location between Asia, Africa and Europe, the PIF said.

Riyadh Air is expected to contribute 75 billion Saudi riyals (USD 20 billion) to the country's non-oil gross domestic product growth and to create more than 200,000 direct and indirect jobs. Saudi Arabia has invested billions of dollars in developing its tourism industry and aims to position itself as a global transport and logistics hub that will attract tourists, diversify its economy and reduce its reliance on oil.

Saudi Arabia's Prince Mohammed last November announced that a new airport will be opened in Riyadh with six parallel runways and designed to accommodate up to 120 million travellers by 2030.

This strategy is backed by USD100 billion in investments from the government and private sector.

In January 2022, Jazeera airways board approved a USD 3.4 billion deal to buy 28 narrow-body aircraft from Airbus after signing a preliminary agreement at the Dubai Airshow in November 2021. The deal included 20 A320 Neos and eight A321 Neos.

Jazeera Airways currently operates a fleet of Airbus A320 aircraft with a two-class cabin, providing both business and economy services. It also runs cargo flights.

The airline operates 19 aircraft serving 59 destinations across the Middle East, Central and South Asia, Africa and Europe.

With inputs from thenationalnews.

In recent years, tensions between the United States and Russia have led to a series of tit-for-tat sanctions and restrictions. One area where this has had a significant impact is in the airline industry, with US airlines now facing a ban from Russian airspace. As a result, some US airlines are now looking to restrict their competitors in response.

The situation began in 2014 when Russia annexed Crimea from Ukraine. The US and other Western countries responded with sanctions against Russia, including restrictions on the country's airline industry. In response, Russia banned certain US airlines from its airspace, including Delta Air Lines, United Airlines, and American Airlines.

Effectively banned from the polar routes that save time and fuel between the United States and an array of destinations on the other side of the world, U.S. carriers say they are being forced into an aeronautical version of Twister to get passengers where they want to go without taking undue risks.

Because of the war in Ukraine, U.S. carriers have to take the long way on flights to and from Asia, giving an advantage to foreign rivals flying the same routes.

The ban has had a significant impact on these airlines' operations. They have had to reroute flights, resulting in longer flight times and increased costs. They have also lost out on potential revenue from passengers who want to travel to Russia or connect through Russian airports.

In response to the ban, some US airlines are now looking to restrict their competitors.

However, critics argue that this is just an attempt by Delta to limit competition and protect its market share. They argue that the US airline industry should be focused on improving its own competitiveness, rather than trying to restrict others.

The situation is complex, and there are valid arguments on both sides. On one hand, US airlines have been unfairly disadvantaged by the Russian airspace ban, and it is understandable that they would want to take action to protect their own interests. On the other hand, restricting competition is not the best way to improve the industry as a whole.

Ultimately, what is needed is a diplomatic solution to the tensions between the US and Russia. Until that happens, the airline industry will continue to suffer. Continued access to the shorter and more fuel-efficient routes that Russian airspace provides is giving carriers like Air India, Emirates and China Eastern Airlines an unfair advantage.

U.S. airlines for years had access to Russian airspace through a series of agreements with Moscow. In exchange for that access, they — and other foreign airlines — paid fees to the Russian government for air traffic control support that amounted to hundreds of millions of dollars per year, according to an airline official and an industry advocate.

But after Russia’s invasion of Ukraine last year prompted government officials in the United States, Britain, Canada and Europe to ban Russian aircraft from flying over their airspace, President Vladimir V. Putin of Russia immediately prohibited the United States and other supporters of Ukraine, including Canada and much of Europe, from flying through his skies.

The London headquartered-Menzies Aviation on March 9 said it has tied-up with IT major Wipro to "transform" its air cargo management services.

The aviation company will use a new product, developed by Wipro, to "improve business efficiencies, employee experience, and customer service through increased automation", a release stated.

Wipro’s cargo handling product was designed using cloud-native technologies, it added, further noting that the product will result in increased transparency and real-time-tracking.

Menzies will be rolling out the Wipro product to five air cargo locations — Bucharest in Romania; Wellington, Christchurch, and Auckland in New Zealand; and Macau in China — by the end of 2023, with further plans to fully implement it across its global network by the end of 2024.

"Following a rigorous tender process for a new warehouse management system, we are excited to announce our partnership with Wipro to drive forward our global technology transformation and ambitious growth strategy," Robert Fordree, Executive Vice President Cargo, Menzies Aviation, said.

"Our teams will be able to utilise an operating system that is more aligned to the look and feel of everyday apps, and our customers will benefit from increased transparency of cargo status, use of automation to speed up processes and improved safety and security procedures,” Fordree added.

According to Omkar Nisal, Managing Director UK & Ireland, Wipro, the collaboration enables them to leverage the company’s extensive technological capabilities, along with Menzies’ vast cargo-handling experience, to "deliver a product that will help revolutionize the air-cargo industry".