Peiter Elbers takes over as the new CEO of IndiGo

Aviation industry veteran Peiter Elbers assumed the charge of Indigo's chief executive officer on September 6, over three months after he was announced as the replacement for outgoing CEO Ronojoy Dutta.

"Petrus Johannes Theodorus Elbers has joined as chief executive officer of the company with effect from today, September 6, 2022," the private Indian carrier said in an exchange filing.

Elbers, who spent three decades at KLM Royal Dutch Airlines, replaces Ronojoy Dutta at the top post. Elbers’ choice as CEO for IndiGo was strategic as a result of his experience in growing worldwide hubs at residence airports.

Peiter Elbers takes over as the new CEO of IndiGo

“Earlier, IndiGo communication summarised it all in just three words: ‘Towards new heights’ and-let me add here: ‘across new frontiers. With that vision in mind, you should feel assured that the coming years will be among the most exciting of your professional lives,” Elbers said.

ALSO READ - IndiGo appoints Pieter Elbers as new CEO after Ronojoy Dutta decides to retire by September

Elbers, the former chief executive of KLM Royal Dutch Airlines, was named as the next CEO by IndiGo on May 18, 2022. He has been at the helm of KLM since 2014. The 52-year-old is also a member of the executive committee of the Air France – KLM Group.

ALSO READ - Air France-KLM and IndiGo officially launch their codeshare agreement

"What IndiGo’s employees and leadership have jointly built, since its start 16 years ago, is, by any standard, truly impressive. I am very honoured and do look forward to building upon this, working together with the entire IndiGo team. I am delighted to become a part of the next stage of IndiGo’s incredible journey, further fulfilling the vision of what the airline can do and will be for its customers and India."Peiter Elbers, CEO, IndiGo

Elbers had started his career in 1992 with KLM and, over the past three decades, held several managerial positions in the company in both the Netherlands and overseas in Japan, Greece and Italy.

With Elbers assuming the charge, the three-year stint of Dutta as IndiGo's CEO has formally concluded. The 71-year-old led the carrier through the turbulent period of COVID-19. In the post-pandemic period, the airline continues to maintain its dominating position in the Indian market.

ALSO READ - IndiGo CEO consents 2-year non-compete post his retirement in September

Ronojoy Dutta, the outgoing CEO of IndiGo, has agreed to an enhanced non-compete for two years as against one year earlier, the company had said on 30 August, against accelerated bonus and amount instead of stock options.

Elbers had started his career in 1992 with KLM and, over the past three decades, held several managerial positions in the company in both the Netherlands and overseas in Japan, Greece and Italy.

The non-compete clause says Dutta shall not engage with any business or allied business that is in any way similar, identical or competitive and will not engage in the Indian aviation sector or provide consultancy services to an entity engaged in Indian aviation.

Dutta was relieved of his duties on 5 September, and not on 30 September as informed by the airline earlier, a company official said. In fact, Dutta agreed to a shorter notice period as per the request of the management.

Elbers got here to India on 4 August and was a part of IndiGo’s 16th-anniversary celebration. Since then, he has been working with Dutta as a part of the hand-holding course.

Elbers got here to India on 4 August and was a part of IndiGo’s 16th-anniversary celebration.

At present, IndiGo commands over half of the domestic market share. With 276 aircraft and over 1,500 daily flights, it is also among the largest airlines in the world. As of March, IndiGo had over 26,000 employees.

The airline currently serves 74 domestic and 26 international destinations. It is flying approximately 1,600 flights a day at present, of which 150 are international. It operates international flights from 16 airports across India.

In July 2022, the airline carried 57.11 lakh passengers, amounting to a 58.8% share of the domestic market, as per the monthly numbers released by the Directorate General of Civil Aviation (DGCA).

ALSO READ - IndiGo reports net loss of INR 1,064 crore in Q1

The airline also narrowed its consolidated net loss to INR 1,064 crore for the quarter ended June 2022 from INR 3,174.2 crore in the year-ago period.

IndiGo currently serves 74 domestic and 26 international destinations. It is flying approximately 1,600 flights a day at present, of which 150 are international.

The airline is also facing supply chain constraints, which have resulted in delays in the delivery of aircraft and engines. Yet, the airline plans to deploy 13% higher capacity than pre-Covid time in the 2022-23 financial year.

The airline has considered opting for wide-body aircraft for long-haul international flight operations multiple times in the past. While the wide-body discussions have not been fructified in the past, the airline has created a strong network of medium to short-distance global routes using its narrow-body aircraft.

ALSO READ - IndiGo plans to have a business class on Airbus A321 XLR

The airline, which plans to induct Airbus’ lengthy vary slender physique plane A321 XLR ranging from mid-2024, has plans to function in several European cities like Barcelona, Rome, Moscow, and Milan from its hub airport at Delhi.

Flight operations at Bengaluru's Kempegowda International Airport, which were affected due to the heavy rainfall, have returned to complete normalcy since Monday, a spokesperson said on Tuesday.

Torrential overnight rain on Sunday severely impacted the normal life in the city, with overflowing lakes and stormwater drains inundating several low-lying areas.

"But from yesterday (Monday morning), it is all back to normal at the airport. There has been no disruption, no delays or diversion, whatsoever since Monday."A spokesperson told.

Low visibility and unfavourable weather conditions on Monday morning delayed as many as nine flights at KIA, while around six other flights were diverted to the Chennai airport, as per the Bangalore International Airport Ltd (BIAL).

As many as six flights were diverted to Chennai airport because of low visibility, while another nine services were delayed for less than 20 minutes, as per the Bangalore International Airport Ltd (BIAL).

Flight operations at Kempegowda International Airport return to normal

This all happened within two hours -- between 1 am and 3 am on Monday, the spokesperson said and added that none of the international flights got delayed. The airport reportedly received 109 mm of rainfall between 11.30 am and 4 pm on Sunday.

Bengaluru international airport, which is the largest aerodrome in the southern region, and which is managed and operated by the Canadian NRI Prem Watsa-owned Fairfax, crossed the 250-million passenger mark in its 15th year of establishment in addition to handling two million aircraft movements during the period in June this year.

ALSO READ - Bangalore International Airport surpasses 250 million passenger count

The business has been booming for some time for major private jets manufacturers, to the extent that firms have been unable to keep pace with skyrocketing demand since the onset of the coronavirus pandemic.

Last year, private plane use soared to its highest level on record. Aviation data research firm Wingx recorded 3.3 million business jet take-offs in 2021, the most for a single year and 7% more than the previous high in 2019.

Private jets are, by far, the most inefficient way to travel, and many have pointed out the hypocrisy of turning up to a summit on climate change on something that is contributing to its very cause.

Private jets are responsible for around 4% of all aviation emissions, according to a 2016 study.

Private jet demand has boomed during the pandemic as the wealthy took control of their travel. Yet, the luxury flight could have a limited runway as some buyers spend beyond their means and the sector presents a prime target for climate critics.

"A huge amount of fuel is used during takeoff and landing of a plane, no matter how many people you have on board. So an already polluting mode of transport (commercial aviation) becomes even worse (with private jets)."Dr Debbie Hopkins, an expert in decarbonising transport at University of Oxford.

Private jets are unable to burn 100% sustainable fuels, which are normally made from biofuels. However, manufacturers, such as Boom Supersonic and Rolls Royce, are developing jet engines to burn 100% sustainable fuels.

This criticism around private jets comes as new research shows the luxury lifestyles of the wealthiest 1% could jeopardize targets to limit global warming to 1.5 degrees.

A single private jet can emit two metric tons of carbon dioxide in just one hour.

Per capita, the richest 80 million people in the world will account for 16% of total emissions globally by 2030, up from 13% in 1990.

The carbon emissions of an 11-minute space flight are estimated to be at least 75 tons. Private jets generally produce significantly more emissions per passenger than commercial flights.

The study, commissioned by Oxfam, says the wealthy would need to cut their emissions by 97% so the world can stay on track to keep global warming below 1.5 degrees, as pledged in the 2015 Paris Agreement.

The first test flight was flown at Goa’s Mopa International Greenfield Airport on Monday under the supervision of the Directorate General of Civil Aviation (DGCA) officials. The officials utilised an IndiGo aircraft for the purpose, which taxied down on the runway.

Mopa International Airport has been developed by GMR Airports Limited subsidiary GMR Goa International Airport Limited (GGIAL).

Recently, Goa Chief Minister Pramod Sawant said that the work of the new Mopa Greenfield International Airport will be completed by October 23 this year.

https://twitter.com/BJP4Goa/status/1566781232566120450

The airport has been developed by GMR Airports Limited subsidiary GMR Goa International Airport Limited (GGIAL). It is based on public private partnership (PPP) model, based on a design, build, finance, operate and transfer (DBFOT) basis. This airport will be a full-service airport catering to both domestic and international passengers besides providing freight services.

"Today a commercial flight of Indigo Airlines A320 aircraft, which came from Mumbai onboard DGCA officials, successfully landed at Mopa Airport new runway." Goa Chief Minister Pramod Sawant said on Twitter.

The airport offers facilities like an integrated passenger terminal building, cargo terminal, emergency services, flight catering, vehicle parking, reserved services and aircraft fuelling infrastructure among others. Experts believe that the airport will bolster demand for second homes in the coastal state.

First test flight lands at Mopa International Airport.

Savills India was quoted as saying by news agency ANI, “One of the reasons for the interest in Goa is that the state has made significant progress in the last couple of years.”

Before Mopa airport became functional, all national and international flights for Goa were handled at the Dabolim airport, which is also a naval base.

Only 70 flights land at the Dabolim airport daily since no flight landing is allowed between 9:00 am to 2:00 pm. After the Mopa airport becomes functional, the number of flights landing in Goa is likely to go up to 150.

ALSO READ - 75% of work on the international greenfield airport at Mopa has now been completed

(With Inputs from Business Today)

European Airlines cancelled half of the flights scheduled for Paris on Friday, September 16 and many others that would have flown over France, as a strike by air traffic controllers imposed the latest round of disruption on European air travel.

More than 400 flights departing from or arriving at Paris Charles de Gaulle and Paris Orly airports had been cancelled, and about 200 had been delayed, by midday on Friday, according to FlightAware, which provides flight tracking data. Hundreds of flights to and from Lyon, Nice, Marseille, Bordeaux and Toulouse had also been cancelled or delayed.

”It is inexplicable that thousands of European citizens/visitors will have their travel plans unfairly disrupted by yet another French ATC (air traffic control) strike,” Ryanair said in a statement. The travel plans of 80,000 passengers had been affected when it had cancelled 420 flights, mainly intended to fly over France, the airline added.

More than 400 flights departing from or arriving at Paris Charles de Gaulle and Paris Orly airports had been cancelled, and about 200 had been delayed, by midday on Friday

Strikes and staff shortages in the past few months have forced airlines to cancel thousands of flights, dashing hopes for a sizzling first summer following widespread COVID-19 lockdowns, with disruption continuing into the autumn.

Air France said on Wednesday, September 14 that due to the then impending strike it would operate only 45% of its short and medium-range flights and 90% of its long-haul flights.

”Everything is very quiet, as the passengers had been warned and did not go to the airports,” a spokesperson of Groupe ADP, operator of the Parisian airports said. The spokesperson added that airlines had tended to cut short and medium services rather than long ones.

Low-cost carrier EasyJet said it had cancelled 76 flights due to the strike.

Aviation authority DGAC asked airlines to halve their Friday flight schedules. Air traffic control union SNCTA in a statement cited inflation and its demand for more staff members as reasons for the walkout.

Low-cost carrier EasyJet said it had cancelled 76 flights due to the strike. British Airways said it had made a small number of changes to its short-haul schedule and is offering rebooking and refund options to customers whose flights have been cancelled.

Major airports in neighbouring countries also felt the impact, with Spanish airport operator AENA saying it had been forced to cancel 65 flights.

Disruption was also expected on Monday, September 19 as London's Heathrow airport said some flights would be cancelled or delayed to keep airspace silent during events to mark the funeral of Queen Elizabeth II.

In late July, Lufthansa Airlines cancelled virtually all its flights in and out of Frankfurt and Munich over 48 hours after around 3,000 employees staged a strike for better wages.

In Europe, strikes over the summer have disrupted travel plans, just as the end of restrictions related to the coronavirus pandemic has led to a surge in demand for air travel.

ALSO READ - Lufthansa and the pilots’ union reach a deal in wage dispute; strike averted

In late July, Lufthansa Airlines cancelled virtually all its flights in and out of Frankfurt and Munich over 48 hours after around 3,000 employees staged a strike for better wages. The strike left more than 130,000 travellers without flights.

Companies have also had to contend with labour shortages, after having laid off baggage handlers and ground crews when air travel was grounded because of the pandemic. Job vacancies among airport staff have led to long lines at airports and have caused flight cancellations, delays and frustration.

(With Inputs from Reuters, and The New York Times)

Alarmed by the weak financial state of Indian airlines, the civil aviation ministry is pushing to enhance the credit limit to them under the government’s Emergency Credit Line Guarantee Scheme (ECLGS), According to a report published by The Economic Times.

Civil aviation secretary Rajiv Bansal last week wrote to the finance ministry, asking that under the scheme, airlines be allowed to avail of additional debt of up to 100% of their outstanding credit, subject to a cap of INR 1,500 crore.

“Last three years have been very challenging for the civil aviation sector. Just when the aviation sector was returning to normalcy, the airlines have been hit by an unprecedented rise in jet fuel prices. Jet fuel is a major component of airline operating costs. Further, the devaluation of INR from USD 70 to USD 80 has aggravated the situation."Rajiv Bansal, Civil Aviation Secretary

Reasoning why an enhanced credit line is important for airlines, Bansal said an unprecedented rise in jet fuel price and devaluation of the rupee against the dollar had increased their operating cost.

The ECLGS scheme, announced in 2020, has been designed to provide collateral-free, government-guaranteed loans to mitigate the financial distress caused by Covid on businesses.

Just like other contact-intensive sectors, companies in the aviation sector could refer the highest credit outstanding on any of the three reference dates of February 29, 2020, March 31, 2021, or January 31, 2022, to avail of funding under the scheme.

Civil aviation ministry pushing to enhance airlines’ credit limit under ECLGS

The aviation industry is facing severe funding roadblocks even as skies are opening up and the impact of Covid-19 is on the wane. Loans for Indian airlines have dried up as banks have become cautious to lend to the sector.

The programme has raised loans for eight companies in the industry, including SpiceJet and Go First. SpiceJet has received a guarantee of INR 127.52 crore, while Go First received INR 25.65 crore from the programme.

While market leader IndiGo has been able to tap banks to raise loans due to its strong cash position, it has become difficult for smaller airlines like SpiceJet and Go First to get loans from banks due to their stressed balance sheets.

ALSO READ - SpiceJet set to receive funds through ECGLS, an extension of up to 3 months for AGM’22

SpiceJet is likely to receive around INR 225 crore next week as a part of the ECLGS

SpiceJet is likely to receive around INR 225 crore next week as a part of the Emergency Credit Line Guarantee Scheme (ECLGS). The funds will be used to clear statutory dues and lessor payments. SpiceJet had applied for INR 280 crore loans under the ECLGS.

Launched by the central government as a special scheme in wake of Covid-19 in 2020, the programme intended to provide guarantee coverage to banks and NBFCs to enable them to extend emergency credit to various industries to meet their working capital requirements.

Under ECLGS, an aviation sector company can get a loan of up to 50% of its total credit outstanding across all lending institutions. However, the amount borrowed by the company can not be more than INR 400 crore.

(With Inputs from The Economic Times)