Ministry of Civil Aviation identifies 25 airports for the second phase of privatisation

In a major development in the aviation sector, the Ministry of Civil Aviation has identified as many as 25 airports for the second phase of airport privatisation. The ministry is currently finalising the terms and conditions for the bidding process. The 25 airports identified for privatisation include some big ones like Chennai, Varanasi, and Kolkata.

The aviation ministry is planning to adopt a new formula for the Public-Private Partnership (PPP) model in the second phase. Under this plan, one big airport could be with one smaller airport and then floated for bidding as one single unit, sources told ET NOW. For example, the Varanasi Airport could be clubbed with Kushinagar Airport. Chennai Airport could be clubbed with a nearby smaller airport.

Using this technique, the government is hoping to attract more private players for the bidding process. In addition to this, Centra also hopes that it will be able to receive more than Rs 10,000 crore as an upfront payment. The bidding formula will be the same as it was during phase 1 of airport privatisation i.e. per passenger fees or the revenue.

The process for the second phase of airport privatisation is on and it is likely that the entire project and the Cabinet note will be ready within two months, which will soon be floated for Cabinet approval.

Last year in December, Civil aviation minister Jyotiraditya Scindia said that the government is looking to lease out 11 more airports for 50 years. The minister shed light on the status of the airport privatisation plan.

“Our plan is to lease out the assets for a period and gain cash flow, which will then be reinvested to build out more airports in tier 2 and tier 3 cities. Our plan is to lease out another 11 airports. So, that process is on and shortly you will be hearing about that,” he had said.

In 2019, the government had leased 6 airports - Lucknow, Ahmedabad, Mangalore, Jaipur, Guwahati and Thiruvananthapuram – and industrialist Gautam Adani-led Adani Group won the bid for all six airports.

(With Inputs from ET Now)

Tata Boeing Aerospace Limited (TBAL) on Tuesday, February 14 said it has shipped the first vertical fin structure for the Boeing 737 aircraft from its state-of-the-art facility in Hyderabad.

The vertical fin will be delivered to the Boeing manufacturing facility in Renton, WA, for integration into the final Boeing 737 aircraft, a Tata Advanced Systems Limited (TASL) statement said.

Tata Boeing Aerospace Limited ships the first vertical fin structure for B737

In 2021, TBAL added a new production line to manufacture vertical fin structures for the 737 family of airplanes. The expansion marked a significant milestone for the joint venture. It also created additional employment while enabling skill development.

"Tata Boeing Aerospace Limited is an example of Boeing's commitment towards the co-development of integrated systems in aerospace and defence in India for the world, and a reflection of the country's Aatmanirbhar Bharat capabilities. The speed and quality with which the first vertical fin has been manufactured is a testament to TBAL's skilled workforce, engineering talent, and world-class manufacturing prowess."

Salil Gupte, President, Boeing India

A vertical fin is a vertical stabilising surface mounted on the tail of an aircraft, providing stability and control in yaw, or the movement of the aircraft from side to side, preventing side-slip and maintaining a straight and level flight. The new production line utilizes cutting-edge robotics, automation, and advanced aerospace concepts like full-scale determinant assembly in its manufacturing processes.

“Successful shipment of the first vertical fin structure for the Boeing 737 aircraft is a result of the hard work and seamless collaboration by the teams at TBAL. This positions TBAL and India as an important manufacturing base in overall Boeing operations. We stay committed towards progression of indigenous aerospace manufacturing with a strong focus on quality and timely delivery.”

Sukaran Singh, Managing Director and Chief Executive Officer, Tata Advanced Systems Limited (TASL)

Spread over 14,000 square meters, the joint venture between Boeing and Tata Advanced Systems Limited (TASL) employs over 900 engineers and technicians. It has been producing aero-structures for Boeing’s AH-64 Apache helicopter, including fuselages, secondary structures, and vertical spar boxes for customers worldwide. Earlier this year, TBAL also delivered the first fuselage for the first of the six Indian Army AH-64 Apache attack helicopters on order.

ALSO READ - Boeing receives the 200th CH-47 crown & tail cone from Tata Advanced Systems

IndiGo has restored annual increments for more than 4,500 pilots as a financial turnaround helped the airline make a profit in Q3 FY23 after three-quarters of loss.

An email from the airline’s management last week informed pilots of the restoration from April.

"The component of annual increment for Indian captains (Rs 10,000 per month) and Indian first officers (Rs 5,000 per month) on the Airbus and ATR fleet which was stopped due to Covid will restart from April 1, 2023," the airline’s senior vice president (flight operations) Ashim Mitra said in the staff email.

IndiGo plans revising the salaries of first officers flying the ATR aircraft. Such officers are paid less than their counterparts on the Airbus fleet. "Details are being worked out and will be shared in due course," Mitra said.

The airline restored pilot salaries to pre-pandemic level from last November. Annual increments are being introduced again, but certain allowances are yet to be restored. Pilots clocking a stipulated number of hours were paid for flying red-eye flights: that allowance has stopped. Certain instructor allowances too have not been revised to pre-pandemic rate, it is learnt.

“We had stopped the increments for pilots during the pandemic but now we have restarted them as the business is picking up. The airline continues to fly 1600-1700 flights daily and is also building up capacity by training its pilots,” said an Indigo official.

IndiGo swung to a record net profit of Rs 1,422 crore in Q3FY23, after three consecutive loss-making quarters. For the same period last year, the airline posted a net profit of Rs 129 crore.

The airline’s best quarterly profit came on the back of 60.7 per cent year-on-year (YoY) growth in revenue from operations, which stood at Rs 14,933 crore, driven by high passenger loads and strong yield.

Delhivery, one of India's leading logistics companies, has recently announced its plans to monetize the intellectual property (IP) developed for its drone delivery services during the fiscal year 2023-24.

The company's CEO, Sahil Barua, made the announcement during an interview with a leading financial news outlet, highlighting the company's continued efforts to innovate and bring cutting-edge technology to the logistics sector.

Delhivery has been working on drone technology for several years now, with successful test runs conducted in various parts of the country. The company has developed its drone technology in-house, creating an IP portfolio that includes multiple patents and trademarks.

The IP is related to various aspects of drone operations, including hardware, software, and operational procedures.

Barua explained that the monetization of the company's IP will be done through licensing agreements with other companies, allowing them to use Delhivery's drone technology in their operations. This will include the use of the company's drones for last-mile deliveries, which is a crucial area for many logistics companies.

The licensing agreements are expected to generate significant revenue for Delhivery, as the company's drone technology is unique and offers many advantages over traditional delivery methods.Barua also stated that the company plans to expand its drone operations in the coming years, with a focus on improving the technology and increasing its operational reach.

Delhivery is currently awaiting approval from the Indian government to expand its drone operations beyond the current testing phase, and the company is optimistic about receiving the necessary clearance soon.

The move to monetize its drone IP is part of Delhivery's broader strategy to leverage technology to improve its operations and gain a competitive edge in the logistics industry. The company has been investing heavily in technology, including artificial intelligence, machine learning, and automation, to streamline its operations and enhance the customer experience.

Overall, Delhivery's plans to monetize its drone IP are a positive development for the company and the logistics industry as a whole. The move will not only generate significant revenue for the company but also drive innovation and progress in the sector.

With the logistics industry poised for rapid growth in the coming years, the use of drone technology is expected to become increasingly widespread, making Delhivery's IP portfolio even more valuable.

The Supreme Court on Monday, February 13 directed SpiceJet to encash bank guarantee and pay INR 270 crore to Kalanithi Maran within two weeks. The bench was hearing SpiceJet's appeal against the high court's November 2, 2020 order, asking the airline to deposit around INR 243 crore as interest in the share transfer dispute with its former promoter, Maran, and Kal Airways.

"With regards to the Supreme Court order in the matter relating to the dispute between SpiceJet and its former promoter Kalanithi Maran and his firm KAL Airways, it is clarified that the overall amount in dispute is INR 578 crore of which INR 308 crore has already been deposited. The remaining amount of INR 270 crore is reserved with the company in cash against which a bank guarantee has been given. This amount of INR 270 crore will be comfortably discharged as per the direction of the Hon’ble Supreme Court."

SpiceJet

The airline also said that the additional amount of INR 75 crore would be paid within 3 months as per the directions of the SC. "We hope this is a step towards achieving a final settlement in this matter," the airline said.

On November 7, 2020, the apex court stayed the Delhi High Court order asking SpiceJet to deposit around INR 243 crore as interest in connection with the share transfer dispute. SpiceJet and its promoter Ajay Singh were asked to deposit around INR 243 crore as interest payable on INR 579 crore, which the high court had, in 2017, asked the airline to deposit under the 2018 arbitration award in the share-transfer dispute.

ALSO READ - SpiceJet’s INR 600 crore offer to settle the share dispute rejected by Maran and KAL Airways

The high court had granted six weeks to SpiceJet to make the payment and the deadline for the same, according to a September 2 order, expired on October 14, 2020. After this, Maran and his firm moved the high court for the attachment of the entire shareholding of Singh in Spicejet and taking over the management for the non-payment of INR 243 crore. The top court had taken note of Spicejet's appeal and passed the interim order, staying the high court order.

SC directs SpiceJet to encash bank guarantee, pay INR 270 crore to Kalanithi Maran

Maran and Kal Airways had moved the high court over the share-transfer dispute with SpiceJet, demanding that 18 crore warrants redeemable as equity shares be transferred to them. On July 29, 2016, the high court asked both parties to settle the dispute under arbitration.

The matter pertained to a dispute arising out of the non-issuance of warrants in favour of Mr Maran after the transfer of ownership to Mr Singh, the controlling shareholder of SpiceJet.

The dispute started after Mr Singh took back control of SpiceJet in February 2015 amid the airline facing a financial crisis. Mr Maran and Kal Airways had transferred their entire 35.04 crore equity shares in SpiceJet, amounting to a 58.46% stake in the airline, to its co-founder Mr Singh in February 2015 for just INR 2.

Boeing on Monday, February 13 announced the launch of its Global Support Centre (GSC) in India and will also set up a new logistics centre in the country as the aircraft maker seeks to expand its presence in India. This centre will be based in Gurugram.

The company has launched its first GSC in India that will provide customised operational efficiency and safety improvement projects for its airline customers, civil aviation regulatory bodies and other industry stakeholders. Besides, it will set up a new logistics centre which will cater to customers. Investment details were not disclosed.

The GSC will conduct technical workshops and projects to support aircraft reliability, enhance airplane performance, and encourage the adoption of Airplane Health Management (AHM) systems.

Boeing launches Global Support Centre and new Logistics Centre in India

For operational improvements, Boeing said the centre will work with operators and regulators on structures and airworthiness; the Maintenance Error Decision Aid (MEDA), a human-factors tool; Air Traffic Management (ATM); aerospace optimisation; and low visibility operation through Head-Up Display (HUD) and Enhanced Flight Vision System (EFVS).

Among other activities, the centre will conduct flight operations symposiums, and engineering seminars, and continue the development of new technology studies impacting airports and operators alike.

ALSO READ - India becomes Boeing’s largest site outside the US in manufacturing and labour

"India is well-positioned to localise maintenance services capabilities and provide cost-effective solutions given its large technical labour force, including uniquely qualified and highly trained technicians and industry capabilities," Boeing said.

ALSO READ - Government encourages Airbus and Boeing to set up final assembly lines in India

More than 150 Boeing airplanes, including the next-generation 737, 737 MAX, 757, 777, and 787 Dreamliner, are operated by leading Indian commercial airlines.

"A key element of efficient customer support is rapid response and distribution of replacement parts. India is well-positioned to localize maintenance services capabilities and provide cost-effective solutions given its large technical labor force, including uniquely qualified and highly trained technicians and industry capabilities. With over eight decades of presence in India, Boeing has built a strong network support for its customers in the region through various initiatives and partnerships while contributing to the growth and development of Indian aerospace and defence sector."

Ashwani Bhargava, Senior Director, India Supply Chain, Boeing India

Through its India Repair Development and Sustainment (BIRDS) hub programme, Boeing is already supporting local customers by creating an ecosystem of comprehensive support packages and indigenous Maintenance, Repair, and Overhaul (MRO) capabilities with its partners.

This initiative is a testament to Boeing's commitment to 'Make in India' and 'Aatmanirbhar Bharat'. Currently, India operates a fleet of Boeing aircraft, including 11 C-17s, 22 AH-64 Apaches (with an additional 6 on order), 15 CH-47 Chinooks, 12 P-8Is, 3 VVIP aircraft, and 2 head-of-state aircraft.

“With India continuing to see an unprecedented surge in civil aviation traffic, Boeing is committed to innovating and bringing value to modernize the Indian aviation ecosystem. We are proud to launch the Global Support Center - India, which will provide a platform to enable knowledge transfer for enhancing safety and increasing operational efficiency for our airline partners in the country."

Salil Gupte, President, Boeing India

In the initial phase of the operations, the India logistics centre would focus on supporting airline customers. In the second phase, it would cater to the larger network of Boeing's customers in the region, the statement added.

Boeing has strengthened its supply chain with more than 300 local companies in India and a joint venture to manufacture fuselages for Apache helicopters and vertical fin structures for the 737 family of airplanes. The company's annual sourcing from the country is around USD 1 billion.