NCLT Approves GMR Infrastructure's Non-Airport Business Merger

GMR Infrastructure on Thursday, December 23 said it has received approval from the National Company Law Tribunal for the restructuring plan involving the demerger of the non-airport business.

GMR Infrastructure had unveiled the rejig plan on August 27, 2020, to simplify the corporate holding structure and to attract sector-specific global investors.

"The Hon'ble National Company Law Tribunal, Mumbai Bench, has sanctioned the composite scheme of arrangement amongst GMR Power Infra Limited (GPIL), GMR Infrastructure Limited (GIL) and GMR Power and Urban Infra Limited (GPUIL) and their respective shareholders under Sections 230 to 232 of the Companies Act, 2013.Separate listing of both the airport and non-airport businesses will also help in simplifying the corporate holding structure. The vertical split demerger will go a long way in facilitating a deeper understanding of the airport business independently as compared to other business verticals within the group."GMR Infrastructure

The sanction was pronounced by the tribunal on December 22, 2021.

On August 27, 2020, the board of GMR Infrastructure together with other group companies -- GPIL and GPUIL -- had decided on a composite scheme of the arrangement including the demerger of the non-airport business of GMR Infrastructure.

Currently, the GMR Group operates the Indira Gandhi International Airport in New Delhi and Hyderabad's Rajiv Gandhi International Airport. It also operates the Cebu airport in the Philippines.

Its energy business has a diversified portfolio of around 4,995 MW generation capacity.

GMR had filed a composite scheme of amalgamation and demerger among GMR Power Infra and GMR Power and Urban Infra with the NCLT in March this year.

Back in the 1960s, a gravel kit was something that was offered by Boeing on its early variants of the 737 series. The kit comprised several modifications that would allow aircraft to safely fly in and out of airports with gravel, dirt or grass strips. Reportedly, the 737s were making over 2000 movements a year from unpaved runways, particularly in 1969.

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Some Boeing 727s were also fitted with specific gravel kits on the nose wheel, while the rest were fitted with devices in the form of smaller deflectors than those used on the 737, used on all wheels, to deflect FOD away to prevent the rear-mounted engines from ingesting FOD from a runway.

Although no longer available now, Canadian North, one of the last operators of the 737-200 with unpaved strip kits are phasing out their last two of the type by 2022.

What is a gravel kit and what are its components?

A 737 gravel-kit | Source

Technically, a gravel kit is a modification on an aircraft to avoid Foreign Object Debris (FOD) damage or ingestion while operating on unpaved surfaces. They generally come as an add-on feature on aircraft to prevent the nose gear from spraying FOD into the engine and onto the underside of the fuselage or wings, and methods of preventing each engine from ingesting FOD from the ground directly in front of it.

Regardless of the surface on which to be operated, certain guidelines are to be followed. As a part of its service to assess the suitability of potential strips, Boeing mandated that The surface had to be smooth with no bumps higher than 3 inches in 100ft; good drainage with no standing water or ruts; and the surface material had to be at least 6 inches thick with no areas of the deep loose gravel. Additionally, if the surface wasn't hard enough,  it could still be used by reducing tyre pressure down to a minimum of 40psi per chart.

The protective equipment included:

The " Nose-gear gravel deflector"- the most prominent and perhaps one which stands out from the rest, is used to keep the gravel off the underbelly and from flying into the engines. This unit is made of corrosion-resistant steel and has a sheet metal leading edge which acts as an aerofoil to give it aerodynamic stability. Smaller deflectors on the oversized main gear to prevent damage to the flaps.Protective metal shields over hydraulic tubing and brake cables on the main gear strut.Protective metal shields over speed brake cables.Glass fibre reinforced underside of the inboard flaps.Metal edge band on elephant ear faring.Abrasion resistant Teflon based paint on wing and fuselage under-surfaces.Strengthened under-fuselage aerials.Retractable anti-collision light.Vortex dissipators fitted to the engine nacelles.Screens in the wheel well to protect components against damage.

Vortex generation | Representative | Picyrl

Why is it phased out now?

With the advent of technology, we have come a long way from unpaved, dirt runways to the highly maintained, paved runways today. According to rates back in the days, maintenance costs of the gravel kit amounted to about $15 per landing. Products manufactured are directly proportional to the demands in the market and if the demands are slump, it just isn't worth producing. Boeing apparently realised it and hence came to the conclusion that it wasn't economical to produce these kits for the upcoming models as most of the airliners today operate on paved runways.

That being said, these kits are still featured on aircraft operating in rough terrain and unpaved surface, for instance, Northern Canada. The 737s operating in and out of this region still make use of these protective gravel kits.

https://www.youtube.com/watch?v=ZJOi-P9FPHY

SimpleFlying | Youtube

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Cover : min.news

Ahead of its summer launch in 2022, Rakesh Jhunjhunwala-backed Akasa Air has started the hiring process for cabin crew, maintenance staff, airport managers and other staff.

The new private airliner has also started the hiring process for senior security, security executive positions, Cabin Crews, Senior Cabin Crews in-flight managers, duty managers and customer service executives.

Earlier on December 22, the low-cost airline unveiled its brand identity with a ‘Rising A’ logo and tagline, It’s Your Sky. Its tagline "It’s Your Sky" is the brand’s promise to embrace everyone and to create an inclusive environment for all Indians regardless of their socio-economic or cultural backgrounds, Akasa Air said in a statement.

The airline also showcased its new brand colours - Sunrise Orange and Passionate Purple.

"With India’s youngest and greenest fleet, the Akasa Air brand is built upon a clear promise to deliver a warm, reliable, and affordable travel experience," the airline said in a press release.

"We wanted our logo to be simple, easy-to-recall and connect with our brand ethos. The Rising A seamlessly connects aviation & ascension and exudes warmth, dependability, freedom, and motion. We believe that the sky embraces everyone and is no longer the limit," Belson Coutinho, CoFounder and Chief Marketing & Experience Officer, Akasa Air

The carrier plans to offer commercial flights starting in the summer of 2022 to support the growing demand across Indian aviation.

Akasa should start operations in the financial year 2022-23 and Jet Airways 2.0 is likely to start in the second quarter of the year (July-September), reckons Kapil Kaul, chief executive, India subcontinent, Centre for Asia Pacific Aviation.

“Translating our purpose to serve every traveller with an innovative yet simple alternative required a modern and confident symbol. The Akasa Air brand identity encapsulates the collective spirit of flying and the individual pursuit of dreams for each of us.It is our promise to all, regardless of backgrounds or beliefs, that it’s your sky, your dreams, your passions, and your personal journey, and Akasa Air is honoured to be a part of it."Vinay Dube, Founder, MD and CEO, Akasa Air

Akasa claims it will be 'the most dependable airline in India, offering warm & efficient customer service, reliable operations, and affordable fares.'

According to reports, Akasa, which has ordered 72 MAX aircraft, will require at least 288 cabin crew members although the number is likely to be more because the airline will also need to provide backup in case one crew member is indisposed. To be sure, the airline will not require so many at one go because the aircraft will be delivered in phases; Akasa is yet to announce how many aircraft it plans to start operations with and how many it plans to induct annually.

Akasa Air is looking to get its air operator's permit (AOP) and take to the Indian skies by as early as April. The airline, founded by Jet Airways' former chief executive Vinay Dube, has also placed an order for 72 Boeing 737 Max planes. It subsequently ordered CFM engines to power the aircraft.

Among other details, Akasa Air unveiled its leadership team with Vinay Dube being the airline's founder, managing director and chief executive officer. Belson Coutinho will be the airline's chief marketing and experience officer, Ankur Goel will serve as its chief financial officer and Praveen B Iyer will fill the role of a chief commercial officer. Aditya Ghosh, IndiGo Airline's former president, is Akasa's co-founder.

The outlook for Indian Oil’s (IOC) aviation business is positive with growth in flights, the upcoming launch of new airlines in 2022 and recovery of jet fuel dues from Air India.

“Airline operators have cleared all dues pending with IOC and are now within agreed terms,” the country’s largest fuel retailer said in a statement. “Air India has also paid around 80% of its pending dues to oil marketing companies. IOC has received INR 2,281 crore from Air India. The balance settlement is under process for which modalities have been initiated because of the handing over process of Air India.”

Air India has been making daily payments for its fuel uplift but its past dues had been pending for years. In 2019, oil marketing companies had briefly snapped supplies to the airline at six airports. They had restored fuel supply after the airline agreed to pay INR 100 crore every month to clear the backlog.

Air India cleared 80% of its fuel dues earlier this month upon receiving fund infusion from the government, it is learnt.

IOC said current aviation turbine fuel (ATF) volume has reached 80% of the pre-Covid time. “With increasing air traffic, an increasing fleet in India, the opening of new airports and anticipated entry of upcoming operator Akasa and the revival of Jet Airways, the outlook for aviation business seems to be positive and optimistic,” it said.

According to IOC, recovery of ATF volumes between April to November was 57% of pre-Covid level and is expected to reach pre-Covid levels once international airlines resume normal operations.

Scheduled international passenger flights have been suspended till January 31 because of the global spread of the Omicron variant of Covid-19. While the civil aviation ministry had given its nod to resume scheduled flights from December 15, the decision was put on hold following a review by Prime Minister Narendra Modi.

Scheduled international flights have been suspended since March 23, 2020, when the lockdown was imposed to rein in the spread of the contagion. While initially only repatriation flights were permitted, India began signing air transport bubble agreements from July 2020 with various countries to resume international flights.

On Sunday, December 26, 611 international flights were operated to and from India, which is around 50% of the approved flights in the winter schedule of 2019.

Karnataka government has cut VAT on ATF to 18% and the revised rate will come into effect from January 1.

Earlier, Tripura Cabinet has decided to reduce the share of Value-Added Tax (VAT) levied on Aviation Turbine Fuel from 16% to 1% expecting better air traffic at Maharaja Bir Bikram Airport Agartala soon after it gets the international airport status.

The Madhya Pradesh government has also decided to reduce the Value Added Tax (VAT) on aviation turbine fuel (ATF) to 4% at Bhopal and Indore airports, a move it hopes will bring down airfares.

(With Inputs from Business Standard)

BOC Aviation Limited has delivered the last of eight Airbus A320NEO aircraft to InterGlobe Aviation Ltd (IndiGo) under a purchase-and-leaseback agreement signed earlier this year.

The aircraft is powered by CFM Leap engines, according to a statement.

"The delivery of these eight aircraft reflects the strong cooperation that we have established with IndiGo, India's largest passenger airline.We look forward to building on our relationships with major airline partners such as IndiGo, as we continue to support our airline customers in financing their aircraft deliveries."Steven Townend, Deputy Managing Director and Chief Financial Officer, Singapore-based BOC Aviation

The A320neo (new engine option) is one of many upgrades introduced by Airbus to help maintain its A320 product line's position as the world's most advanced and fuel-efficient single-aisle aircraft family. The baseline A320neo jetliner has a choice of two new-generation engines (the PurePower PW1100G-JM from Pratt and Whitney and the LEAP-1A from CFM International) and features large, fuel-saving wingtip devices known as Sharklets.  

BOC Aviation Limited is an aviation leasing unit headquartered in Singapore, with regional offices in London, UK, Dublin, Ireland, Tianjin, China and New York, USA. The company was wholly owned by the Bank of China.

The BOC Aviation portfolio is one of the youngest in the leasing business with an average owned aircraft age of under four years. The fleet is primarily based on the popular Airbus A320 family and Boeing Next-Generation 737 series as well as the Embraer 190/195 family. It also includes select widebody types, such as the Airbus A330 and Boeing 777.

Besides direct orders with manufacturers, BOC Aviation also grows its fleet via purchase and leasebacks with airlines. They offer a wide range of lease management and aircraft finance services, both directly and through its indirect parent company Bank of China.

BOC Aviation is a leading global aircraft operating leasing company with a fleet of 553 aircraft owned, managed and on order. Its owned and managed fleet was leased to 87 airlines worldwide in 39 countries and regions as of December 31, 2020.

Tata Group's takeover of loss-making national carrier Air India is most likely delayed by a month till January as the completion of procedures is taking longer than expected, an official said on Monday, December 27.

In October, the government accepted the highest bid made by a Tata Sons company for 100% equity shares of Air India and Air India Express along with its 50% stake in ground-handling company AISATS -- the first privatisation in 20 years.

At that time, the government had stated that it wanted to complete the transactions, which included Tatas paying INR 2,700 crore in cash, by December end. As per the conditions in SPA, all formalities of handover would have to be completed within 8 weeks, but this date can be mutually extended by the buyer and seller and is being done in this case.

However, some regulatory approvals are yet to come in for the handover, and certain formalities are yet to be completed, the official, who wished not to be named, told PTI. "The process would be completed by January," he said without giving a specific date.

On October 25, the government had signed the share purchase agreement with Tata Sons for the sale of national carrier Air India for INR 18,000 crore. Tata's would pay INR 2,700 crore cash and takeover INR 15,300 crore of the airline's debt. The cash component would come once the handover process is completed, another official explained.

Tatas beat the INR 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of INR 12,906 crore set by the government for the sale of its 100% stake in the loss-making carrier.

As of August 31, Air India had a total debt of INR 61,562 crore. 75% of this debt or INR 46,262 crore will be transferred to a special purpose vehicle AIAHL before handing over the loss-making airline to Tata Group.

A meeting will be held to review the progress of Air India’s disinvestment after which clarity may come about handing over Air India to Tata and the long stop date. The meeting will be attended by officials from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Civil Aviation (MoCA). After clarity on the long stop date, the financial statements will be prepared in agreement with Tata on that date.

The handover of Air India to Tata Sons also requires approvals from global competition regulators before closing the transaction, the daily mentioned citing the official. On December 20, India’s competition regulator, the Competition Commission of India approved the deal.

Tatas will not get to retain non-core assets, such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi. Of the 141 Air India aircraft that Tatas will get, 42 are leased planes, while the remaining 99 are owned.

While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tatas' stable - it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.

Tata's acquisition of Air India will give it access to a fleet of 117 wide-body and narrow-body aircraft, and Air India Express Ltd another 24 narrow-body aircraft besides control of 4,400 domestic and 1,800 international landing, and parking slots at domestic airports.

Air India started suffering losses every year since its merger with Indian Airlines in 2007-08. A Turnaround Plan (TAP) and a Financial Restructuring Plan (FRP) were approved for Air India by the previous UPA regime in 2012.

However, the TAP did not work out, and Air India continued to reel under losses, with the government giving INR 20 crore per day to keep the airline afloat. Over the last decade, more than INR 1.10 lakh crore was infused by way of cash support and loan guarantees in the loss-making airline to keep it afloat.