N Chandrasekaran reshuffles Air India's top management

Air India's Chairman N Chandrasekaran on Friday, April 15 affected a major reshuffle in the top management of the recently-acquired airline, with Nipun Aggarwal appointed as Chief Commercial Officer and Suresh Dutt Tripathi as Chief Human Resources Officer.

Aggarwal, who is also Senior Vice President at Tata Sons, replaces Air India veteran Meenakshi Malik, while Tripathi, who was Vice President of Human Resources at Tata Steel from 2012 to 2021, succeeds Air India's, Amrita Sharan.

The order was issued by Chandrasekaran, who is also the chairman of Tata Sons. Malik and Sharan were on Friday, April 15 appointed as Advisors to the CEO of Air India, according to company communication.

As the Tata Group is yet to appoint the CEO of Air India, Malik and Sharan will currently be advisors to Chandrasekaran, it mentioned. Satya Ramaswamy, who has worked at Tata Consultancy Services before, was on Friday appointed as Chief Digital and Technology Officer at Air India, the order stated.

Rajesh Dogra was appointed as the Head of Customer Experience and Ground Handling at Air India, it mentioned. Air India veteran R S Sandhu will continue to hold the charge of Chief of Operations at Air India, it noted.

Air India's top management was reshuffled by N Chandrasekaran

Another Air India veteran Vinod Hejmadi will continue to hold the charge as Chief Financial Officer, it mentioned. "The new appointees will exercise the powers of functional/departmental heads as per the delegation of authority. We wish them all the very best in their new role," Chandrasekaran stated in the order.

After a competitive bidding process, the government had on October 8, 2021, sold Air India to Talace Private Limited — a subsidiary of the Tata group's holding company — for INR 18,000 crore.

Tata Sons last month named N Chandrasekaran as the chairman of Air India, the airline which was acquired by Tata Group from the central government last year.

ALSO READ - Ilker Ayci declines Tata Sons’ offer to be the new CEO of Air India

Air India also begins restoring salaries to pre-pandemic levels gradually

Air India had earlier announced that former Turkish Airlines boss Ilker Ayci declined to take up the top job, despite being named the airline's CEO. Ayci – who oversaw extensive cost-cutting at Turkish Airlines – was chosen as the debt-ridden carrier's first foreign CEO in mid-February after Tata group bought it back from the government following 69 years in state ownership.

ALSO READ - Air India begins restoring salaries to pre-pandemic levels gradually

Air India is also restoring salaries of employees in a phased manner to pre-pandemic levels as the aviation sector is recovering with the decline of COVID-19 cases in the country, according to the airline’s official document.

Indigo, the country's biggest airline owned by InterGloble Aviation, on April 15 announced the appointment of Shell India's former chief Vikram Singh Mehta and former Air Chief Marshal B.S. Dhanoa (Rtd) as the Independent Non-Executive Directors.

The appointments are subject to receipt of security clearance from the Ministry of Civil Aviation (MoCA) and approval of the members of the company. Both the appointments will be effective from the date of receipt of security clearance from the MoCA, according to a company statement.

Mehta, who is currently Chairman and Distinguished Fellow of CSEP (Centre for Social and Economic Progress), is being appointed in place of Anupam Khanna, whose second term came to an end on March 26.

Vikram Singh Mehta is currently Chairman and Distinguished Fellow of CSEP (Centre for Social and Economic Progress).

“I am delighted and honoured to be invited to join the Board of InterGlobe Aviation Limited. I have for long admired the success of its low-cost, courteous, efficient and on-time offering from the outside. I now look forward to seeing it cross new frontiers, from the inside," said Mehta.

Mehta is an Independent Director on the Boards of several companies including Larsen and Toubro Ltd, Mahindra and Mahindra Ltd, Colgate Palmolive India Ltd, Apollo Tyres Ltd, HT Media Ltd and Jubilant FoodWorks Ltd.

He is also on the Boards of Thomson Reuters Founders Share Company, Overseers of the Fletcher School of Law and Diplomacy, Tufts University, and the Global Advisory Board of Macro Advisory Partners.

Retired Air Chief Marshal (ACM) B.S. Dhanoa

Along with Mehta, Retired Air Chief Marshal (ACM) B.S. Dhanoa's appointment will replace Meleveetil Damodaran, who is stepping down as an Independent Director on attaining 75 years on May 3, 2022. The appointment of Dhanoa will be effective from the date of receipt of security clearance from the MoCA or May 4 2022, whichever is later.

Dhanoa has served at various ranks with the Indian Air Force (IAF) including Air Officer Commanding-in-Chief of South-Western Air Command before taking over as the Vice Chief of Air Staff (VCAS) in May 2015.

IndiGo appoints two independent non-executive directors

He served as the 25th Chief of the IAF from January 1, 2017, to September 30, 2019, and led the IAF when it executed airstrikes over a terror camp in Balakot in Pakistan in February 2019. Dhanoa is currently an Independent Director on the Board of Hero MotoCorp Ltd from October 2020.

He has been awarded the Param Vishisht Seva Medal in 2016, Ati Vishisht Seva Medal in 2015, Yudh Seva Medal in 1999 and Vayu Sena Medal in 1999.

“Delighted to be on the immensely talented Board of IndiGo, the market leader in civil aviation of our country with an inherent belief in performance and safety, values I cherished the most during my service in the IAF," said Dhanoa.

“All of us at IndiGo are absolutely thrilled to have two such distinguished personalities join our Board. Mehta brings years of experience running major corporations and a wealth of knowledge from working on some of the leading Boards in India. We will gain immensely from Air Chief Marshal Dhanoa’s exemplary leadership and crisis management skills. We look forward to the guidance and counsel of these two very special people."Ronojoy Dutta, CEO, IndiGo

ALSO READ - IndiGo emerged as the world’s sixth-largest carrier by passenger volume for March

Recently, IndiGo has emerged as the world’s sixth-largest carrier by passenger volume for March, according to the UK-based Official Airline Guide (OAG). It carried more than 2.02 million passengers in the month, the most by any Asian carrier, according to statistics collected till March 28.

IndiGo was also named the world’s fastest-growing airline by OAG, with a 41.3% growth in frequency in March. The airline also ranked among the top 10 airlines in the world by seat capacity for March.

ALSO READ - Former aviation secretary named as Principal Adviser to MD of IndiGo

Air India is restoring salaries of employees in a phased manner to pre-pandemic levels as the aviation sector is recovering with the decline of COVID-19 cases in the country, according to the airline’s official document.

The Indian aviation sector was badly hit due to the pandemic-induced travel restrictions during the last two years and therefore, all airlines in India had cut salaries. All Pilots available for flying will continue to be paid a fixed 20 hours of flying allowance or actuals, whichever is higher in a month.

Air India’s document said pilots’ flying allowance, special pay and wide-body allowance were cut by 35%, 40% and 40%, respectively, after the onset of the pandemic.

From April 1 this year, flying allowance, special pay and wide-body allowance of pilots are being restored by 20%, 25% and 25%, respectively, the document stated.

Cabin crew members’ flying allowance and wide-body allowance were cut by 15% and 20%, respectively, during the peak of the pandemic, the document noted. Flying allowance and wide-body allowance of cabin crew members are being restored by 10 and 5%, respectively, from April 1.

The allowances given to officers and other staff members were cut by 50% and 30%, respectively, during the pandemic, it mentioned.

While officers’ allowances are being restored by 25% from April 1, other staff members’ allowances are being restored to the pre-pandemic level from April 1, it noted.

Air India begins restoring salaries to pre-pandemic levels gradually

Gross emoluments given to Indian employees who are based at foreign locations were cut by 10% at a maximum of USD 300 during the pandemic, it said. These gross emoluments are being restored by 5% at a maximum of USD 150.

Similarly, India-based officers’ gross emoluments were cut by USD 300 during the pandemic, and it is being restored by USD 150 from April 1, it mentioned.

All the aforementioned components of salaries of employees will be restored to their pre-pandemic levels on April 1 next year, it said.

ALSO READ - Air India pilots request restoration of full pay and other benefits from N Chandrasekaran

“As the hope of a post-pandemic world seems within reach and the aviation sector takes off once again with some visible changes in our performance, we are happy to inform you that your salary cuts have been reviewed and the restoration of salaries will happen in a phased manner… changes will be implemented from April 1, 2022.For pilots and cabin crew, international and domestic layover allowance remain unchanged and rates applicable in March 2022 will continue. For pilots, cabin crew and other employees - all specific allowances attached to a post or role and other contingent allowances remain unchanged and rates applicable in March 2022 will continue to be applicable.All deductions will be reviewed again in coming few months and changes will be communicated to you… We will also be soon releasing pilot and cabin crew handbook with details on performance guidelines and other policies…As we embark upon this journey to make Air lndia a world-class airline, each of you is key to fulfilling this vision. With customer centricity, performance orientation, and accountability as our bedrock, let us all look ahead, fly higher and make Air India the best and most loved airline."Amrita Sharan, Personnel Director, Air India

This announcement comes days after the Air India pilot association - Indian Commercial Pilots' Association (ICPA)- had written to the new chief, Tata Sons' Chairman N Chandrasekaran, to restore their emoluments. 

Meanwhile, Tatas have also begun reversing Air India employees’ steep pandemic-time pay cuts. Other airlines like IndiGo and Vistara have also partially rolled back pay cuts following widespread discontentment among employees.

ALSO READ - IndiGo partially restores pilot salaries by 8% from April 1

These airlines have promised to further review pay cuts in the coming months depending on business recovery and whether there are any more disruptions to traffic for any reason.

The Adani Group-managed Sardar Vallabhbhai Patel International Airport (SVPIA) at Ahmedabad on Thursday, April 14 announced completing recarpeting--a work to resurface roads with fresh asphalt--the 3.5-kilometre-long runway in 75 days.

The group said that an asphalt equivalent to a 200 km stretch of road was used for re-carpeting along with concrete sufficient to build a 40-storied structure. It said the work was an all-time best for a brownfield runway in India.

https://twitter.com/ahmairport/status/1514871669822611464

The busiest airport in Gujarat with over 200 flights every day before the coronavirus pandemic, SVPIA kept the runway open daily for 160 flights on an average during the remaining 15 hours of the day during the 75 days of re-carpeting work

ALSO READ - Ahmedabad Airport to remain close for 9 hours every day until May 31

The challenge of re-carpeting the runway without impacting the operations of scheduled flights was tackled by Adani Airport Holdings Ltd (AAHL) by using only 9 hours of notice to airmen (NOTAM) daily, the group stated.

The actual duration of 75 days for recarpeting stands against an earlier planned timeline of 200 working days starting November 10, 2021, which was later reduced to a target of 90 days by Adani Group by increasing resources.

"Subsequently, SVPIA’s project team completed the work in just 75 days. The project entailed the support of one million safe manhours and 600 individuals featuring staff and workmen along with over 200 sophisticated pieces of equipment," the group stated.

The runway recarpeting project was estimated to be completed in two phases, spanning three calendar years, as per industry standards even as AAHL completed the work in 75 days.

In addition to other upgrading works completed at SVPIA, the airport now has a complete airfield lighting system in the runway and connecting taxiways that is equivalent to lighting an entire district of 12 to 14 villages.

With the resumption of regular international flights, a new phenomenon has emerged. If Indians do not have a transit/regular Schengen visa, they will be denied boarding at the origin in India on European Union (EU) carriers such as Lufthansa, Air France, and KLM, who are supposed to travel to the UK via these airlines' hubs in Frankfurt/Munich, Paris, and Amsterdam, respectively.

According to top airline officials, this is because, following Brexit, the EU has decided to "punish" the UK by requiring non-EU citizens to obtain a transit Schengen visa in order to fly to the UK on transit flights operated by its carriers. Switzerland, despite not being a member of the EU, is exempt from this rule for its airline Swiss.

Indian travellers must have a Schengen visa to fly to the UK on EU carriers post Brexit

On one-stop flights from India to the United Kingdom, passengers can pass through the Gulf and Switzerland without needing a transit visa. Nonstop flights from Air India, Vistara, British Airways, and Virgin Atlantic are the other option.

The change took place on January 1, 2021, in the midst of the pandemic. India had a bubble system for international connectivity at the time, with strict rules about which nationalities could travel on which flights and how many one-stops they could make.

The bubble system was designed primarily for point-to-point travel between India and other countries, with some conditional connections permitted.

Switzerland, despite not being a member of the EU, is exempt from this rule for its airline Swiss.

So at that time, travel between India and the UK happened mainly on direct flights or via places like the Gulf whose airlines did not strictly follow the no-transit rule for Indian travellers.

Now as regular flights resumed, many travellers — those without transit Schengen visas and booked on Lufthansa, Air France-KLM to fly from India to the UK — are being caught off guard when denied boarding at the origin airport in India.

“Passengers should be aware of the travel requirements, so refund depends on the conditions of the ticket bought,” said an EU airline official. Afraid of losing business, some EU carriers are learnt to have requested foreign governments to raise this issue with the Union.

Afraid of losing business, some EU carriers are learnt to have requested foreign governments to raise this issue with the Union.

After the resumption of scheduled international flights by India, foreign airlines can again offer one-stops between India and the rest of the world. This one-stop business has substantially gone up in the India-US-India sector after Russia’s war on Ukraine.

ALSO READ - United Airlines halts 2 Indian routes as it ends using the Russian airspace

Due to longer routes and expensive jet fuel, US carrier United has reduced India non-stops by half; Delta has not resumed India flights it had suspended in March 2020 and American Airlinea has only one daily (Delhi-New York).

ALSO READ - Tata negotiating aircraft order for Air India with Airbus and Boeing

Till its fleet is augmented, Air India says it can’t add more non-stops to the US. As a result, the Gulf and European are getting a lot of business for this route.

Brexit was the withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 GMT on 31 January 2020.

Brexit was the withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 GMT on 31 January 2020. The UK is the only sovereign country to have left the EU. It had been a member state of the union and its predecessor the European Communities (EC) since 1 January 1973.

Following Brexit, EU law and the Court of Justice of the European Union no longer have primacy over British laws, except in select areas in relation to Northern Ireland. The European Union (Withdrawal) Act 2018 retains relevant EU law as domestic law, which the UK can now amend or repeal.

Aviation minister Jyotiraditya Scindia said on Thursday, April 14 that while he is in constant touch with the 12 state governments that still levy VAT in the range of 10-30%, he has requested the finance ministry to rationalise excise on jet fuel.

Prices of aviation turbine fuel (ATF), or jet fuel, have risen "inexorably" in recent times and are putting a "tremendous amount of pressure" on Indian carriers.

The high base price of ATF - it kept rising even as politically sensitive petrol and diesel was untouched during the recent state election times - coupled with even higher rates of VAT and excise duty has made jet fuel for domestic flights in India among the most expensive globally.

Jyotiraditya Scindia requests the finance ministry to rationalise excise on jet fuel

"Till a few months back, 11 states charged VAT ranging 1-4% on ATF, while 25 did so in the range of 10-30%. Our efforts have now led to a reversal of the situation where today 24 states charge 1-4% and 12 charges 10-30%. We are working on the remaining states also," Scindia said.

ALSO READ - Jyotiraditya Scindia pitches for rationalisation of tax rates on jet fuel

However, states with the biggest metro hubs like Delhi and Mumbai are yet to lower their taxes. If those states are not agreeing, then why does the Centre not reduce excise on ATF, a demand constantly raised by struggling-to-survive airlines?

"We have met with the finance minister. It is under her active consideration (reduction of excise)," he said. Seven bimonthly hikes so far this calendar year have led to ATF prices increasing by almost 50% to all-time highs.

In Delhi, Mumbai, Chennai and Kolkata, for instance, ATF cost INR 1.1-1.2 lakh per kilolitre (1,000 litres)

In Delhi, Mumbai, Chennai and Kolkata, for instance, ATF cost INR 1.1-1.2 lakh per kilolitre (1,000 litres) for domestic flights as of Thursday, April 14.

On the other hand, domestic fare bands, decided by the aviation ministry, have not been revised upwards for many months, despite the relentless hike in jet fuel prices.

Asked if the domestic fare bands are being done away with and why they have not kept pace with ATF, the minister said, "The fare bands have a low and upper-end of fares. The range is still large enough to (factor in enhanced operating cost due to ATF)."

ill the six metros reduce ATF price, not much will change for airlines in terms of survivability

While no Indian airline (except IndiGo) had a healthy balance sheet in the past few years, the pandemic's crippling blow has left them all struggling to survive. Russia's war on Ukraine - leading to fuel price hikes and weakening of the rupee vis-a-vis the dollar - has added to woes.

"Airlines are not a cost-plus industry. We have hardly passed on half of the enhanced increase in operating cost to passengers. Due to increased fares, recovery in domestic traffic has taken a hit. Till the six metros reduce ATF price, not much will change for airlines in terms of survivability," said an airline official.

"The rupee weakening against the dollar by every INR 1 means an enhanced expense of INR 75-80 crore for a mid-sized airline and INR 150-200 crore for a large airline in India. About 65-70% of our costs are dollar-denominated like aircraft lease/maintenance, foreign stations and GDS," said another airline official.