India's Punjab National Bank on Thursday, September 2 urged a tribunal to quash the rescue plan for defunct debt-laden Jet Airways, alleging irregularities in it, a move that risks delaying any return of the airline grounded two years ago.
A consortium of London-based Kalrock Capital and a UAE-based businessman last year agreed to pump in INR 1,000 crore as working capital and give funds to creditors of Jet, which was hit hard due to piling up debt in 2019.
PNB, the court-appointed official in charge of Jet's revival, Ashish Chhawchharia, and a spokesperson for the consortium investing funds into the collapsed airline did not respond to requests for comment.
PNB is the largest shareholder in Jet Airways with a 26% stake which it secured after the invocation of a pledge in 2019.
The country's second-largest state lender PNB argues that Jet's court-appointed rescue official had initially accepted its claim of nearly INR 10 billion ($137 million) from the airline's backers, but then reduced it by INR 2 billion, according to its tribunal filing seen by Reuters.
At the National Company Law Appellate Tribunal, PNB argued that a reduction of the amount was arbitrary and illegal.
PNB is the largest shareholder in Jet Airways with a 26% stake which it secured after the invocation of a pledge in 2019.
“The consent by the appellant (PNB to the revival plan) amounts to forced consent as in case of dissenting financial creditors the resolution plan entails only minimum payment of liquidation value. This differential treatment of assenting and dissenting financial creditors is discriminatory,” it said.
The airline’s resolution plan, proposed by Jalan-Kalrock Consortium, received a nod from the National Company Law Tribunal on June 22
Further, PNB argued that the resolution plan was discriminatory as it treated it on a par with its promoter Naresh Goyal and Etihad Airways and proposes a payment of a fixed sum of Rs 10,000. All other public shareholders will get one share for every 100 shares held by them in the airline upon restructuring of capital structure.
On Thursday, the tribunal agreed to hear PNB's case, Additional Solicitor General of India, Aman Lekhi, who argued for the bank, told Reuters. The case will be heard on Sept. 21.
“The approval of the resolution plan by the adjudicating authority (NCLT) is infirm both due to contravention of law and material irregularity by the resolution professional. How PNB has been treated is wrong - both substantively and procedurally."Senior Advocate and Additional Solicitor General, Aman Lekhi, who appeared for PNB.
Once India's biggest private carrier, Jet Airways was crippled by losses and a pile of debt as it attempted to compete with low-cost rivals and was forced to ground all flights in April 2019, putting at risk its lessors, suppliers, lenders and thousands of employees.
Overall, the airline plans to hire at least 1,000 employees in the first phase of its revival, sources added. However, the hunt for CEO is still on and the airline has shortlisted candidates from across India and overseas, sources added.
The airline’s resolution plan, proposed by Jalan-Kalrock Consortium, received a nod from the National Company Law Tribunal on June 22 and the airline was asked to engage with the government authorities for the slots at domestic airports.
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As many as 150 ground staff of SpiceJet went on strike at the Delhi airport on Friday morning over issues related to reduced salaries and later returned to work following talks with the airline management, sources said.
When asked about the matter, SpiceJet spokesperson clarified that the carrier's flight operations at the Delhi airport are functioning normally.
"A section of employees working at the Delhi airport and having some issues have met senior officials and the matter is being resolved," the spokesperson added.
As many as 150 ground staff of SpiceJet went on strike at the Delhi airport. (Source - ANI Twitter)
Later during the day, the spokesperson said the issue with a section of SpiceJet employees at the Delhi airport has been resolved and the employees have returned to work.
"SpiceJet's flight operations remain normal," the spokesperson added.
Sources said the employees who went on strike discussed with the management their issues such as reduced salary and its disbursement.
The pandemic has severely affected airlines’ fortunes with those with weak balance sheets like SpiceJet very badly affected. In the past aviation authorities have conducted financial audits of cash-strapped airlines to ensure that their financial weakness is not having an impact on their operational safety. The DGCA in the past was used to check if such airlines are not cutting corners on maintenance and safety expenses.
SpiceJet has been paying reduced salaries to a significant number of employees since 2020 as its finances have been hit due to COVID-19 pandemic-related travel restrictions. Other airlines in India have cut their salaries too since 2020 for the same reason.
Unloaded cargo on an aircraft with ground staffers on strike. (Source - TOI)
SpiceJet’s plan to raise money by monetising its cargo subsidiary may also not find enough takers, as demand for cargo on foreign routes from India may not stay the same once regular international flights begin.
“The demand for cargo in the international sector now is primarily because there are no international flights. That demand will move to the belly of the commercial aircraft of foreign carriers or even Indian carriers when regular international operations begin,” said a source.
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India's Vistara has received the official all-clear from the United States Department of Transportation (DOT) for a foreign air carrier permit on August 25, 2021. Vistara was granted the final approval to conduct flights between the US and India. Vistara can now schedule commercial flights between the two countries, moving people, property and mail. The nod allows Vistara to even fly charter and cargo flights.
Vistara will retain its potential to provide international carrier services between the US and India as long as it complies with regulations proposed by the Transportation Security Administration (TSA), Federal Aviation Administration (FAA), and DOT. This involves complying with DOT regulations for passenger services and refunds, safety and security guidelines, among others. Towards the end of April, Vistara first applied for permission to operate US flights. The tentative approval was granted in June.
On August 25th, Vistara received final approval from the DOT for a foreign air carrier permit.
Presently, the US maintains a travel ban for foreign natives travelling from India with COVID-19 in mind. The exception is for US citizens and their families, students and legal permanent residents. Vistara is unlikely to launch long-haul flying at the moment. Most superfluous travel to India is restrained. Apart from certain exemptions, entering the country if you are a non-citizen is not so easy currently.
Therefore, Vistara should hold off as far as adding US flights is concerned at this time. One option could be to fly into the US with a stop. The airline could initiate operations to stops like Dallas, Miami, Houston, with a stop in Europe or Canada if granted fifth-freedom route access.
With the range on these aircraft, out of the airline’s hubs in Mumbai or Delhi, the aircraft can reach points across the United States. (Picture Credit - Twitter - Vistara)
The carrier wants to use its Boeing 787-9 aircraft to fly to the United States. With the range on these aircraft, out of the airline’s hubs in Mumbai or Delhi, the aircraft can reach points across the United States, including San Francisco, Chicago, New York, Boston, and Washington D.C.
However, there is no dearth of one-stop options between the US and India. Passengers can fly from a city such as Houston to India with a stop in the US, Europe, Canada, or the Middle East. Vistara would face heavy competition and might not reap financial rewards with such routing.
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Noida International Greenfield Airport, also known as Jewar airport, is an international airport in the making, constructed close to the town of Jewar, Gautama Budh Nagar, UP.
This airport is located about 72 kms away from Indira Gandhi International Airport, which serves the bulk of the needs of the NCR region currently.
Prepmate.in
Implemented by the The Yamuna Expressway Industrial Development Authority (YEIDA) and acting on behalf of the Government of Uttar Pradesh, the project will be developed through a Public-Private-Partnership model(PPP). This will be the third international airport in Delhi-NCR after the Indira Gandhi International airport and a regional Airport at Hindon.
The Swiss firm, Zurich International Airport(ZIA) AG grabbed the bid to develop the airport at a massive Rs 29,560 crores.The designing of the airport would bring together renowned architects like Nordic, Grimshaw, Haptic and STUP and a plan to be implemented as a three-phase competition between June-August 2020.
Swiss firm signs agreement with UP government
Reportedly, Chief minister Aadityanath, wasn't exactly elated with the developments,during one of his official reviews of the plan.
There should be a reflection of the Indian Heritage in the architecture of the main terminal of the buildingChief Minister Yogi Adityanath
Apparently, the Chief Minister wanted an attractive design, but, with an Indian touch and this was conveyed to the developers. He made the statement in a gathering which was also attended by Civil Aviation Minister Nand Gopal Gupta "Nandi", additional Chief Secretary to UP CM SP Goyal .Noida International Airport Limited(NIAL) CEO Arun Vir Singh and of course, representatives from ZIA.
If reports are anything to go by, the architecture promises a swanky building with a larger-than-life food-court, about the size of a football ground, located between the arrival and departure zones.
Work has commenced already and phase 1 of the project is underway with two runways planned on it currently.
On successful completion, the airport will reportedly have six functional runways making it the country's largest airport and one among the world's largest. Currently Chicago's O-Hare and Dallas/Fort Worth grab the top spot with eight and seven runways respectively.
With 3 active runways, Indira Gandhi International Airport is currently the largest in India.Keeping future expansion in mind, there's been a proposal for the addition of 2 more runways taking the tally to eight-subject to land acquisition clearances.
What's new?
With all the required approvals and clearances from the respective regulatories in place, the airport developer has been given the go-ahead to proceed with the project.The master plan now boasts of multi-modal connectivity, integrated cargo hub and facilities for maintenance, repair and overhaul( MRO) of aircrafts.
The master plan reflects the goals and objectives set by providing solutions that are financially prudent, cost-effective and commercially sound-at the heart of it remains passenger convenienceCristoph Schnellmann, CEO, YIAPL
According to the master plan, the proposed 2 terminals will be operating at a capacity of 30 million and 40 million passengers respectively (annually).
The 2 planned runways will see an infusion of Swiss efficiency, simplicity and quality.
The NIA has the potential to become a key cargo hub gateway in North IndiaYIAPL
As far as multi-modal connectivity goes, the master plan has provisions for intricate and seamless road, rail, bus and metro connectivity. The Yamuna Expressway would connect the NIA with NCR and to the city of Agra- which hosts one of the 7 wonders of the world- the iconic Taj Mahal.
Metro rail from Greater Noida to Jewar airport by 2023
The provisions under the plan is touted to ultimately position the state of Uttar Pradesh on the global logistics map.
We are delighted that we have been able to complete the master planning activity within the agreed timelines despite limitations due to COVID-19. We are looking forward to developing a world-class airport for the people of India that truly combines hospitality of India with Swiss efficiencyChristoph Schnellmann
COVER: IndiaTV News
IMAGE(s): Top Indi News, Navbharat Times
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The new integrated terminal building being constructed at Pune airport with an investment of INR 475 crore to handle 2,300 passengers during the peak hours is expected to be completed by March 2022, AAI said on Wednesday, September 1.
A multi-level car park (ground plus three-storeyed +2 basement floors) is also under construction for INR 120 crore as part of the airport revamp plan, the Airports Authority of India (AAI) said in a release.
AAI has undertaken the construction work for the new integrated terminal building at Pune Airport to cater to the continuous surge in passenger traffic and ease congestion at the airport.
The proposed new look of the Pune Airport
More than 40% of the work is completed and the new building, which is spread in over 5 lakh sq ft area, is likely to be completed by March 2022, AAI said.
The swanky new terminal building will be able to process 2,300 passengers (1,700 domestic and 600 international) during peak hours, it said, adding that it will be equipped with five boarding bridges, 34 check-in counters and in-line baggage handling system,Besides, 32,000 sq ft space has been provisioned for food and beverages and retail outlets inside the airport, the release said. The project also includes the construction of a service yard of 3,800 sq metre, a 10-lakh litre capacity underground tank, 1,130-kilolitres per day capacity sewage treatment plant, among others, it said.
With a parking capacity of 1,024 cars, the facility will be connected to the departure area of the existing building with a sky bridge with the provision of escalators and an elevator at the building side for dropping/going up.
A multi-level car park (ground plus 3 stories + 2 basement floors) is under construction for INR 120 crore
The car park facility is likely to be completed by April 2022, AAI added. The new building, which is expected to increase the daily flight movements, including international flights, is coming up on the eastern side of the existing terminal building.
“We are planning to complete construction of all important aspects of the building, which include the integration with the existing building so that flights can start seamlessly,” the airport official said.
Construction of the building started in December 2018 and a multi-level car parking facility (ground, three-storey and two basement floors) was being simultaneously constructed at ‘parking number-1’ of the airport. An official in charge of the parking facility’s construction said getting the workers back had become a problem and air tickets were sent to them to return to Pune.
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The HAL, on Tuesday, announced its biggest ever order in association with GE for the acquisition of 99 F404-GE-IN20 engines which would power the indigenously made LCA Thejas. The contract worth Rs 5,375 crores was officially signed at HAL's corporate office on August 17.
Business Standard
This is the largest-ever deal and the purchase order placed by HAL for LCAsaid R Madhavan, CMD, HAL
The highest thrust variant of the F404 family, the F404-GE-IN20 incorporates GE’s latest hot section materials and technologies as well as FADEC for reliable power and operational characteristics.
F404-GE-IN20
Ordering the engines marks a major milestone in the execution of 83 LCA contracts with IAF. The co-operation will further be enhanced with the manufacturing of GE F414 engines in India for the upcoming LCA MkII programmeread a statement by the HAL
Let's take a brief look at what exactly the LCA Thejas program is all about.
The LCA program(Thejas)
The Financial Express
The LCA was christened as "THEJAS" by the then prime minister, Mr. Atal Bihary Vajpayee(2003).The LCA Thejas program was initiated in the early 80s when the IAF realized the need to retire the ageing MIG-21 fighters and upgrade the arsenal with more state-of-the-art technology.
This time around, focus would be more on indigenously produced parts and softwares. This led to the formation of the Aeronautical Development Agency (ADA), with HAL being the primary contractor.
The LCA design and development would be spearheaded by ADA and HAL's Aircraft Research and Design. Center(ARDC) - The design was conceptualised in 1990 while the development was planned in 2 phases:
Phase 1: Would see the design, development and testing of two technology demonstrator aircraft (TD-1&2).
Phase 2: Three more prototypes were built comprising of Naval and Trainer variants.
8 Limited Series Production (LSP) aircraft were developed between April 2007 and March 2013, as precursors to series production (SP) aircraft.
Technical Specifications
The smallest and lightest supersonic aircraft of its class, it boasts of fly-by-wire (FBW) control system, multi-mode radar (MMR) and an afterburning turbofan engine (ATE).
Equipped with digital avionics, it has a composite material structure.It is a fourth generation aircraft with "relaxed state ability" (RSS). This technology renders the aircraft inherently unstable thereby greatly enhancing inflight manoeuvrability.
The TD-1 prototype took to the skies for the first time on Jan 04,2001 followed by a successful supersonic flight on 01 August 2003. The FBW system was developed by the National Aeronautical Lab(NAL) and this bird proudly boasts of components which are majorly built indigenously ( about 70%).The HAL and DRDO's Electronics and Radar Development Establishment (LRDE) were initially in the race to indigenously manufacture the MMR when technological adversities forced them to make use of an available radar from a foreign OEM.
The Israeli ELTA EL/M-2032 multi-mode fire control radar (FCR) was tested in April 2010 and is being used in the first batch of 40 TEJAS Mark I.
The fully indigenous Uttam AESA Radar will mount 63 aircraft of the second contract for 83 aircraft. This radar is capable of multi-target tracking (upto 100 targets) at a maximum range of 150 km for a target with 2m2 radar cross-section (RCS) and prioritised target engagement.The GTX-35VS ATE (Kaveri), was an indigenously developed propulsion system, by DRDO’s Gas Turbine Research Establishment (GTRE), in the late 1980s.
GTX-35VS ATE (Kaveri)
In 2004, GE was awarded a contract for 17 upgraded F404-GE-IN20 ATE to power eight IAF and two Naval prototypes while in 2008, 24 F404-IN20 upgraded ATE were ordered for the first TEJAS Mark I squadron of the IAF.
The Indian Navy(IN) and the LCA Thejas program
Naval Thejas MK-2
The Indian Navy (IN) opted out of the LCA Program in December 2016, citing concerns over excessive weight. Following this, a fresh Request for Information (RFI) for 57 Multi- Role Carrier Borne Fighters (MRCBF) was made later on.
MULTI ROLE CARRIER BORNE FIGHTERS
A conceptual design for a Twin Engine Deck Based Fighter (TEDBF) was unveiled at Aero-India 2021 by ADA/DRDO. It is expected to make it's maiden flight by 2026 with induction expected possibly by the beginning of the next decade.
Twin Engine Deck Based Fighter
Final design of India's 5th Gen Advanced Medium Combat Aircraft(AMCA) at Aero India 2021
COVER: The Indian Express
Images: Indian Defence News, Reddit, Swarajya
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