Odisha government seeks permission from DRDO to Operationalise the Amarda Road Airstrip

Radhika Bansal

16 Feb 2022

Odisha Government had requested Union Government to allow Amarda Road Airstrip for flight operation under RCS-UDAN Program. Chief Secretary Suresh Chandra Mahapatra has written to Union Secretary Ministry of Defence, Ajay Kumar in this regard, official sources said.

Looking at the huge tourism potential, Odisha Government requested the Ministry of Civil Aviation to include Amarda Road under RCS-UDAN Scheme. On receiving Odisha’s request, the Ministry of Civil Aviation has included Bhubaneswar-Amarda Road as a Special RCS Route under UDAN 4.1.

Gsec Monarch has been selected as the Airline Operator for the said route with 7 Flights/Week using 9 Seater Aircraft.

Odisha government seek permission from DRDO to Operationalise the Amarda Road Airstrip

Mahapatra, who has been instrumental in scaling up Eco-Tourism Sector in a big way in the State, has pointed out that Northern Part of Odisha, which is deprived of any kind of Air-Connectivity and the existence of Amarda Road Airstrip near Rasagobindapur in Mayurbhanj District has a huge significance for the nearby places.

This air connectivity will facilitate tourism connectivity to important places like Similipal National Park, Kuldiha Sanctuary, Chandipur and Talasari Sea Beaches. Such air connectivity will facilitate economic growth through trade, create job opportunities, increase revenue from taxes and foster the community relationship with neighbouring States and Communities, pointed out the Chief Secretary.

Earlier the State Government has requested DRDO for providing a NO Objection Certificate (NOC) to use the Airstrip for Commercial Flight Operation under RCS-UDAN. However, the State Government has not received the same, resulting in the proposed flight operation being left in limbo.

Mahapatra has requested Kumar to look into the matter and issue necessary instruction to DRDO for use of Amarda Road Airstrip in the Mayurbhanj District by the Odisha Government for flight operation under RCS-UDAN in the larger public interest.

Officials hope that DRDO would issue NOC in this regard at the earliest as it will open up tourism, spur economic activities and generate revenue for the State.

Principal Secretary Commerce & Transport Bishnupada Sethi, who has been pursuing this air-connectivity issue with the Ministry of Civil Aviation is in touch with senior officials of the Government of India in this regard, said sources.

Joint Secretary Ministry of Civil Aviation, Usha Padhee, is continuously making efforts to add more and more airstrips under RCS-UDAN, for which Odisha has been benefitted in a big way.

Earlier, Mayurbhanj MP and Union Minister Bishewar Tudu had Defence Minister Rajnath Singh and Civil Aviation Minister Jyotiraditya Scindia to convert the airstrip into a modern airport keeping in view its past glory.

He had said that once an airport comes up at the Amarda Road airstrip it will cater to an estimated 82 lakh people mostly in north Odisha, south Bengal and east Jharkhand.

Historian Anil Dhir said the Amarda Road airstrip was a forward airfield against the Japanese during the conquest of Burma. It served as a landing ground for planes and also as a training space for special bombing missions. Built in the 1940s for INR 3 crore, the airstrip was abandoned after Independence. 

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TruJet grounds all of its aircraft

Radhika Bansal

16 Feb 2022

All aircraft of TruJet has been grounded even as the company is struggling to stay afloat due to financial issues. At least five out of seven aircraft have been taken back by the lessors while two others are in the process of being deregistered.

The airline’s CEO, CFO, and CCO have quit in the past month, and TruJet has not paid salaries to its employees for at least three months now, said sources. 

Multiple sources say that TruJet has been facing an acute cash crunch for at least a year now with no investors insight. “Due to continued non-payment of dues, at least five aircraft were deregistered over the past three months, while the other two are in process,” said a source. 

TruJet grounds all its seven aircraft

It was reported in June 2021 that the company had failed to pay complete salaries to its employees, and was functioning on only one aircraft. “It continued to pay half salaries till October. Since November, the employees have not seen a penny.” 

At least 100 employees, including pilots, cabin crew, ground staff have quit the company. Not only that, the senior management — CFO KG Viswanath, CCO Sudheer Raghavan, CEO Rtd Col LSN Murthy — too have deboarded the company. 

One of the persons named above said: “I don’t see a reason to be a part of the company anymore. There have been lots of words and nothing has fructified in actions. There is no investor yet, and I don’t know if and when one will come. It’s only a matter of time one of the operational creditors drags the company to the NCLT.”

The airline’s CEO, CFO, and CCO have quit in the past month.

ALSO READ - MEIL relinquishes control of TruJet to ex-promoter Vankayalapati Umesh

According to Megha Engineering & Infrastructures Limited (MEIL), it had sold off the company to Vankayalapati Umesh, the previous owner of TruJet, who then took over as the Managing Director of the airline. Messages sent to MEIL’s group director, KV Pradeep, and its communications team remained unanswered.

When contacted, Umesh said the position for the CFO had been filled by A Yoganarasimhan, and added that a CEO, too, will be appointed soon, until which time he will be the acting CEO. The airline will be onboarding an investor soon, added Umesh.

TruJet utilises a fleet of ATR-72 aircraft. 

TruJet (Turbo Megha Airways) which was established in July 2015, is an Indian low-cost carrier based at Hyderabad Rajiv Gandhi International Airport.

The carrier operates a route network primarily focusing on the country's central Andhra and Telangana regions, with destinations including Tirupati, Hyderabad, Aurangabad, Vijayawada and Rajahmundry. TruJet utilises a fleet of ATR-72 aircraft. 

The carrier is backed by Turbo Aviation, diversified Indian aircraft maintenance and ground handling company.

(With inputs from The Hindu Business Line)

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IndiGo to upgrade its A320 aircraft's navigation technology with NAVBLUE

Radhika Bansal

16 Feb 2022

The country’s largest airline IndiGo has chosen NAVBLUE, an Airbus Services company, to upgrade navigation technology in some of its A320 planes and that will help pilots to navigate challenging airspaces with more precision and predictability.

The leading carrier will upgrade a part of its A320 aircraft fleet with RNP AR (Required Navigation Performance with Authorisation Required) capability.

IndiGo to upgrade its A320 aircraft's navigation technology with NAVBLUE

"With Airbus’ RNP AR Upgrade, IndiGo pilots will be able to navigate mountainous areas or other challenging airspaces with precision and predictability,” NAVBLUE said in a release. NAVBLUE is into flight operations and air traffic management solutions.

"We are pleased to partner with NAVBLUE to upgrade our latest A320 aircraft with the most advanced navigation technology. We have full confidence in NAVBLUE’s expertise which will help our pilots navigate safely through challenging terrains like curvy or hilly areas during the takeoff or landing. We believe this will enhance operational safety of the aircraft while also improving efficiency in the long run."Ronojoy Dutta, CEO, IndiGo

The airline is a customer of NAVBLUE since 2006. IndiGo is aiming to enhance the regularity and safety of operations in their flights to Kathmandu, an airport surrounded by mountains with a very challenging operating environment.

RNP AR is the ideal solution, as a Performance-Based Navigation (PBN) system using satellite positioning, which allows navigation accuracy to 0.3NM and below, and turns after the final approach point.

To support its RNP and RNAV operations, IndiGo has chosen NAVBLUE’s RAIM prediction service, N-RAIM.

With RNP AR, IndiGo aircraft will be better equipped to access difficult airports and reduce minima with enhanced safety conditions, improving their operational efficiency, and therefore having a positive impact on the environment.

NAVBLUE’s highly experienced and multidisciplinary team, using cutting-edge techniques, will implement a complete end-to-end solution for IndiGo with RNP AR capability, supporting Ops approval and Flight Operational Safety Assessment (FOSA), also applicable to departures.

“We are proud that IndiGo, the largest airline in India and an established NAVBLUE customer since 2006, has renewed their trust in our products by choosing to upgrade its fleet with RNP AR capability, our complete end-to-end solution to support Ops approval, and N-RAIM, NAVBLUE’s prediction service to support these operations. We are sure that our long track record supporting airlines with these solutions will be beneficial for IndiGo".Fabrice Hamel, Chief Executive Officer, NAVBLUE

To support its RNP and RNAV operations, IndiGo has chosen NAVBLUE’s RAIM prediction service, N-RAIM. NAVBLUE is the world’s leading provider of RAIM predictions to the civil aviation community, supplying over 85,000 predictions every day. For challenging airports where RNP AR approaches or departures are in use, along-track predictions use the real mask angle to account for terrain screening.

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SpiceJet's INR 600 crore offer to settle the share dispute rejected by Maran and KAL Airways

Radhika Bansal

15 Feb 2022

The former promoter of Spicejet, Kalanithi Maran has rejected the offer made by the airline for a one-time settlement to end the long-standing share-transfer dispute between the two parties, the Supreme Court was informed on February 14.

The Supreme Court bench headed by Chief Justice of India NV Ramana had asked Maran on February 10 to consider the one-time settlement offer made by SpiceJet during the hearing before the court.

Maran’s lawyer, Senior Counsel Maninder Singh, informed the court today that the offer of lump-sum pay-out of INR 600 crore is not found to be feasible. This, the counsel said, was because the total amount owed to Maran was around INR 920 crore.

SpiceJet's INR 600 crore offer to settle the share dispute rejected by Maran and KAL Airways

The court sought to know the basis on which this valuation was arrived at and has granted time to Maran to file the response on the issue. The Supreme Court will hear the case next on March 2.

Maran, and his firm KAL Airways, was before the Supreme Court urging it to lift the stay imposed on the Delhi High Court order which had directed SpiceJet to deposit INR 243 crore towards interest payable to Maran in the share transfer dispute.

According to the arbitration award, SpiceJet owed INR 579 crore to Maran as a refund which became the principal amount as well as interest on it. The high court’s order for deposit of the interest amount, however, was stayed when SpiceJet challenged it before the top court.

SpiceJet owed INR 579 crore to Maran as a refund which became the principal amount as well as interest on it.

When the plea for vacating the stay order was being heard by the Supreme Court, SpiceJet proposed to make a total payout of INR 600 crore to Maran as a one-time settlement provided that Maran would not file any execution petitions against the airline.

SpiceJet had earlier offered two proposals for settlement of the shareholding dispute with the Marans. The airline had offered to repay INR 600 crore in total for settling the arbitral dispute. Alternatively, SpiceJet had to pay INR 100 crore and argue the dispute expeditiously before the Delhi High Court.

Maran stressed the validity of the interest amount of INR 243 crore and highlighted that it was an “admitted amount” and the media baron held a decree for the refund and interest monies. This decree would be rendered merely a “paper decree” if SpiceJet is wound up by the Madras High Court order passed against it, Maran’s counsel had told the court.

SpiceJet had to pay INR 100 crore and argue the dispute expeditiously before the Delhi High Court.

The Supreme Court, however, proceeded to ask Maran to consider the offer SpiceJet had made.

The dispute dates back to 2015 when Maran and his firm KAL Airways transferred 58.46% of the shares held by them to the present Chairman of SpiceJet, Ajay Singh, for INR 2. Singh, who was the co-founder of the airline, had taken on the airline’s liabilities valuing at INR 1,500 crore.

Through this share transfer agreement, Maran was to be issued warrants and preference shares and had paid INR 679 crore towards the same.

ALSO READ - SC asks Maran and KAL Airways to consider SpiceJet’s settlement offer of INR 600 crore

In 2017, Maran moved the Delhi High Court saying that he was neither issued the preference shares as agreed on nor was the money paid by him refunded. The high court referred the case for arbitration.

The arbitration tribunal, in July 2018, awarded a refund to Maran to the tune of INR 579 crore plus interest but rejected his claim for INR 1,323 crore in damages. When Maran challenged this arbitration award before the high court, the court favoured Maran and directed SpiceJet to deposit INR 243 crore towards the interest amount.

This order of the high court was stayed by the Supreme Court shortly thereafter and came up before the top court now with Maran seeking vacation of the stay.

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Amidst ongoing court cases, SpiceJet posts net profit for Q3 after IndiGo

Radhika Bansal

15 Feb 2022

Domestic airline SpiceJet posted a net profit of INR 42.5 crore for December 31, 2021, which ended the quarter on Tuesday, February 15. In the same quarter in the year-ago period, the firm had reported a loss of INR 66.7 crore.

The low-cost carrier’s revenue for the October to December 2021 period grew 33.8% on a year-on-year (YoY) basis to INR 2,263 crore as against INR 1,692 crore in the same quarter last fiscal.

Ajay Singh, Chairman and Managing Director, SpiceJet

Ajay Singh, Chairman and Managing Director, SpiceJet, said SpiceJet’s profit in Q3 FY2022 was driven by excellent logistics operations, rebound in passenger traffic and various accommodations from aircraft manufacturers and lessors.

“The passenger industry witnessed the much-needed turnaround in the third quarter as COVID-19 cases ebbed in the first half of the quarter, travel picked up significantly and there was finally hope that the worst was behind us. However, that changed by the second half of December as Omicron halted that recovery.SpiceJet’s performance would have been much better but was impacted by the unexpected delay in the return to service of the 737 MAX, rising fuel costs and certain exceptional adjustments. There are renewed signs of recovery in the passenger segment and the logistics segment continues to remain strong."Ajay Singh, Chairman and Managing Director, SpiceJet

The airline’s earnings before interest, taxes, depreciation and amortization (EBITDA) slipped 52.4% to INR 116.4 crore. The EBITDA in the year-ago period was recorded at INR 244.3 crore (YoY). The EBITDA margin in the quarter under review stood at 5.1%, against 14.4% in the same quarter last fiscal. SpiceJet's one-time loss stood at INR 77.4 crore.

The firm said it operated 390 charters to various countries carrying over 64,000 passengers and launched 40 new routes during the quarter to strengthen its domestic network. It had the best passenger load factor amongst all airlines during the quarter at 85.2%.

SpiceJet back in the black after 7 quarters, reports INR 42.5 crore Q3 net profit

The low-cost carrier, which is going through turbulent times, was scheduled to announce the financial results for the quarter ended December 2021 on Monday, February 14. It postponed its scheduled board meet to Tuesday, February 15 saying the company's audit committee meeting for approval of December quarter results was inconclusive due to paucity of time.

SpiceXpress, the Company’s logistics platform, continued on its growth trajectory reporting increased revenue of INR 584 crore for the reported quarter as compared to INR 498 crore in the last quarter, a jump of 17%. 

It said that while there is uncertainty in the revenue operation in the short-term which is expected to normalise in the long-term. While passenger business was suspended due to very low demand during the lockdown period and/or restricted operation period, it earned a profit of INR 21.5 crore from its cargo business.

SpiceJet’s stock rose 7.34% to INR 63.60 on BSE after the Q3 result announcement.

Investors cheered SpiceJet’s Q3 earnings as the stock rose 7.34% to INR 63.60 on the Bombay Stock Exchange at 3 PM on February 15, after the results announcement. At 2.50 PM, SpiceJet was trading at INR 63.30 on BSE, up 7% from its previous close while the benchmark Sensex rose 3% to 58,068 points.

SpiceJet, which controls 10.3% of the local market, was overtaken by Go Airlines India Ltd. in December 2021 as India’s second-largest airline. SpiceJet’s race to reclaim the No. 2 spot will also face stiff competition from Air India Ltd., which is headed for a revamp after Tata Sons formally took over the indebted carrier in January.

In November 2021, SpiceJet announced that it has entered into a settlement agreement with Boeing wherein Boeing has agreed to provide certain accommodations and settle the outstanding claims related to the grounding of 737 MAX aircraft and its service return.

ALSO READ - SpiceJet and Boeing reach a settlement agreement on the 737 MAX aircraft deal

The settlement not only brought back into operations the grounded 737 MAX aircraft but also paved the way for the induction of more efficient and younger MAX aircraft into SpiceJet’s fleet, the firm said. The settlement also ensures the resumption of new aircraft deliveries from the order of 155 MAX aircraft.

The airline is now aiming for a stronger comeback in 2022 by utilising and expanding its 737 MAX fleet for better yield and flying experience, launching new customer-centric services, optimising daily operations based on IT and expanding network both domestically and internationally.

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Rolls-Royce estimates to have an electric aircraft ready by 2025

Radhika Bansal

15 Feb 2022

Rolls-Royce Holdings, the engine maker known for powering Airbus and Boeing workhorse jets, expects a fully-electric small aircraft in three to five years, a top executive said.

The first commercial application of P-Volt, a battery-electric system developed by Rolls-Royce, will have about 600-kilowatt hours of power, which will enable flying six to eight people as far as 80 nautical miles, Rob Watson, president of the company’s electrical division, said in an interview in Singapore on Monday, February 14.

Rolls-Royce Holdings, the engine maker known for powering Airbus and Boeing workhorse jets, expects a fully-electric small aircraft.

That range will keep improving with better battery technology, and may eventually be able to fly as much as 400 km in the 2030s, London-based Watson, who’s attending the biennial Singapore Airshow this week, said.

“We are confident in the technology. Now we need to scale it so it can have a meaningful economic influence," said Watson, who was promoted to an executive role this year. “I think that’s where you see urban air mobility and regional air mobility, aircraft with 8-18 seats, becoming a real possibility in the next three to five years." 

Earlier ‘Spirit of Innovation’ from Rolls-Royce becomes the world’s fastest all-electric aircraft

A slew of companies around the world, from startups to established aerospace giants, as well as some automobile manufacturers, are at different stages of developing aircraft that are powered by an alternative source of power, as pressure builds on the industry to cut back on emissions.

ALSO READ - ‘Spirit of Innovation’ from Rolls-Royce becomes world’s fastest all-electric aircraft

The options being worked on include sustainable aviation fuel, SAF, hydrogen, fully electric, and hybrid-electric. Rolls-Royce’s electric propulsion system can be used for both electric vertical takeoff and landing, or so-called eVTOLs or commuter aircraft.

One of its customers, Vertical Aerospace Group Ltd., has already grabbed orders from American Airlines Group Inc., Virgin Atlantic Airways Ltd. and aircraft lessor Avolon Holdings Ltd., and says its VA-X4, a zero-emission four-passenger aircraft, can fly as fast as 200 miles per hour over a range of more than 100 miles. 

“If you want to fly hundreds of people and thousands of miles, which is the single-aisle market, a battery is never going to do that because you’ll just be limited by the energy density of a battery and the weight of the battery. If you want to get to net-zero on those platforms, you will achieve that principally through SAF and then through hydrogen.We need to make supply selection decisions in the next year, year and a half. We’re making decisions about our strategic suppliers this year."Rob Watson, President (Electrical Division), Rolls Royce

However, Watson doesn’t expect narrowbody aircraft, the most popular models for Airbus and Boeing, to turn fully electric. 

Rolls-Royce is currently in talks with suppliers for battery cells as it approaches the crucial stage of certification, Watson said. While Rolls-Royce will design and assemble the packs, it won’t manufacture battery cells, he said.

(With Inputs from Bloomberg)

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