Shares of HAL surge as LCA Tejas becomes the top contender for Malaysia’s fighter jet order

Radhika Bansal

05 Jul 2022

Shares of Hindustan Aeronautics Ltd (HAL) surged on July 4 after boss R Madhavan announced that HAL-manufactured Tejas light combat aircraft has emerged as the top choice for the Malaysian air force.

HAL shares rose 3.50% to INR 1,805 apiece after the news. Shares have jumped over 45% so far this year as benchmark indices Nifty and Sensex are down over 10%.

Malaysia is looking at replacing its ageing fleet of fighter jets and the two sides are holding negotiations to take forward the procurement process.

Shares of HAL surged as LCA Tejas becomes the top contender for Malaysia’s fighter jet order

ALSO READ - India: Top contender for Malaysia’s fighter jet order

Malaysia has narrowed down on the Indian aircraft notwithstanding stiff competition from China’s JF-17 jet, South Korea’s FA-50 and Russia’s Mig-35 as well as the Yak-130 plane, HAL chairman and managing director Madhavan told PTI in an interview.

As part of the package, India has offered to set up an MRO (Maintenance, Repair and Overhaul) facility in Malaysia for its Russian-origin Su-30 fighter fleet as it is facing difficulties in procuring spares for the aircraft from Russia given Western sanctions against Moscow.

It is learnt that the Chinese JF-17 was cheaper but it could not match the technical parameters of the Tejas Mk-IA variant and the offer of maintenance of the Su-30 fleet as proposed by India.

Chinese JF-17 was cheaper but it could not match the technical parameters of the Tejas Mk-IA variant and the offer of maintenance of the Su-30 fleet as proposed by India.

Tejas, manufactured by HAL, is a single-engine and highly agile multi-role supersonic fighter aircraft capable of operating in high-threat air environments.

The LCA Tejas MK1A has been designed by the Aeronautical Development Agency (ADA) and manufactured by HAL. It is an advanced fly-by-wire (FBW), 4+ generation fighter and comes with a glass cockpit with a satellite-aided inertial navigation system.

The advanced version of the MK1, the MK-1A is a multi-role aircraft, equipped with improved features, such as mid-air refuelling, Beyond Visual Range (BVR) missile capabilities, updated Radar Warning Receiver (RWR), Active Electronically Scanned Array (AESA) Radar and Electronic Warfare (EW).

The advanced version of the MK1, the MK-1A is a multi-role aircraft, equipped with improved features

It can carry a payload of 3,500 kg, including long-range BVR missiles and standoff and precision-guided weapons. It has a service ceiling of 50,000 ft which enables the aircraft to conduct offensive air support and air combat operations. The LCA Tejas is an integral part of the Modi government’s “Make in India” initiative.

In February 2021, the Indian Defence Ministry sealed an INR 48,000 crore deal with HAL for the procurement of 83 Tejas fighter aircraft for the Indian Air Force (IAF).  

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Ethiopian Airlines in talks with Air India to revive the Code Share Agreement

Jinen Gada

05 Jul 2022

Ethiopian Airlines is currently in talks with Air India to revive its codeshare agreement. The two airlines first signed the deal in 2011, but the agreement was suspended shortly before the pandemic due to operational difficulties. Now, with markets opening again after COVID, the African carrier feels the time is right to resume the relationship with Air India.

A codeshare agreement, also known as codeshare, is a business arrangement, in which two or more airlines publish and market the same flight under their airline designator and flight number as part of their published timetable or schedule.

Ethiopian Airlines is in talks with Air India to revive the Code Share Agreement

Typically, a flight is operated by one airline, technically called an "administrating carrier" or "operating carrier" while seats are sold for the flight by all cooperating airlines using their designator and flight number.

Most of the major airlines today have code-sharing partnerships with other airlines, and code sharing is a key feature of the major airline alliances. Typically, code-sharing agreements are also part of the commercial agreements between airlines in the same airline alliances.

Air India isn't the only Indian carrier Ethiopian has its eyes on. The airline wants to lure as many Indian passengers as possible for flight connections from its primary hub at Addis Ababa Bole International Airport (ADD).

Ethiopian is looking to revive its codeshare agreement with Air India after two years. 

The carrier is looking to create commercial partnerships with Indian low-cost carriers such as IndiGo and SpiceJet. Additionally, Ethiopian Airlines is also assessing the prospects of setting up its aircraft maintenance, repair, and overhaul facility in the country.

Around 90% of Ethiopian passengers travelling from India are transit passengers going further to the airlines' African points, mainly to Kenya, South Africa, Nigeria, and Zambia, among others. Its biggest destinations in India – Mumbai and Delhi – supply a steady flow of business and leisure passengers to the airline, and it wants to double down on that by having multiple codeshare options.

Ethiopian Airlines on July 3commenced its direct passenger flights between Chennai and Addis Ababa. The maiden flight from Addis Ababa arrived in Chennai on Sunday, July 3 morning, and the service will be three times a week to the city.

The airline far has operated their A350, B787, B777 and now their B737 to Chennai. (Image Courtesy - Aerowanderer)

This is the first direct passenger flight connection Chennai will have with an African city. It has been operating dedicated freighters to Chennai. Chennai is the fourth destination after Mumbai, Delhi, and Bengaluru for the airline to start direct flight service.

Since 2011, there has been an agreement between Air India and Ethiopian Airlines. Customers can benefit from increased connectivity possibilities thanks to such an arrangement, which also greatly strengthens business and investment ties.

"Reviving the deal won’t be an issue, and we are now in contact with Air India executives. We have been partners for a very long time, and all that has to be done is to change the technical aspects of the Code Share.We feed them with passengers in Delhi, Bengaluru, Mumbai, and Chennai, and they supply us with connections outside of Addis Ababa on our flights."Lemma Yadecha Gudeta, Chief Commercial Officer, Ethiopian Airlines

India has consistently been a lucrative stop for airlines. With a lot of tailwinds expected to emerge, the aviation industry in India would be one of the top markets in the world.

Ethiopian Airlines is the national airline of Ethiopia, based in Addis Ababa. One of the leading airlines on the African continent, Ethiopian Airlines serves more than 60 international destinations across Africa, Asia, Europe, the Middle East and North America, as well as operating an extensive domestic and international cargo network. Ethiopian Airlines became a member of Star Alliance in December 2011.

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Air India to get enhanced passenger service system from Amadeus

Radhika Bansal

05 Jul 2022

Travel technology company Amadeus will provide a passenger service system to Tatas-owned Air India as the airline works on ways to improve operational efficiency as well as customer experience.

Air India is implementing the full Amadeus Alta PSS (Passenger Service System) suite, including components ranging from revenue management, revenue accounting, retailing, merchandising, website, mobile and frequent flyer programme management, Amadeus said in a statement.

The carrier signed an agreement with Amadeus in this regard on Monday, July 4.

Air India to get enhanced passenger service system from Amadeus

"The platform delivers a modern and efficient reservations solution to customers and travel partners. The advanced system will also equip Air India with technology that will enhance its operational efficiency," the statement said.

"In line with the vision of Tata Group chairman N Chandrasekaran to make Air India a world-class airline, we are adopting several cutting-edge technology solutions to transform the airline's customer experience. Amadeus Alta PSS is the first of many such initiatives to transform Air India."Nipun Aggarwa, Chief Commercial Officer, Air India

According to the release, the initial PSS cutover took place in late May and a mid-term roadmap was agreed upon to support the airline's transformation ahead.

ALSO READ - Air India in talks with fellow Star Alliance members for codeshare agreements

"India is an important market for Amadeus and we have our second largest R&D centre located there. This will enable close innovation with Air India. Our advanced technology solutions will provide the building blocks for Air India to deliver smooth experiences for its passengers."Cyril Tetaz, Executive Vice President, Alta, Amadeus

Previously, the airline worked with SITA, an IT provider for ticketing and reservation, and was in the process of revamping its customer experience and fleet-management solutions.

Further, Tata Consultancy Services, the software arm of the Tata Group, is expected to play a pivotal role in overhauling Air India to bring the airline on par with its private counterparts through tech-led reforms and cost efficiencies.

The Tata Group also prefers Amadeus for its services, with Vistara using Amadeus PSS and renewing its partnership with the firm in 2019.

Air India has a fleet of 117 aircraft and apart from domestic routes, has a global footprint across geographies

The Tatas have long-term plans to make Air India financially fit, improve aircraft conditions, bring in a new fleet and make it a technologically advanced airline according to global standards.

Air India has a fleet of 117 aircraft and apart from domestic routes, has a global footprint across geographies including North America, Europe and West Asia. The loss-making airline was acquired by Tatas in January.

Amadeus is a leading travel technology company offering solutions that help airlines, airports, hotels, and railways, among others, to run their operations and improve the travel experience. Headquartered in Madrid, Amadeus has been in the travel industry for more than 30 years and has partnered up with major airlines around the world.

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Singapore's Seletar Airport positioning itself as a hub for flying taxis

Radhika Bansal

05 Jul 2022

Just 20 minutes north-west of Singapore’s Changi Airport -- regularly voted the world’s best -- is Seletar Airport, the city-state’s second, and far well less known, airfield. It’s predominantly where the super-rich land in their private jets. It’s also where the future of aviation could be taking off.

The neighbourhood, more known for its laid-back cafes in restored British-era colonial buildings and sleepy fishing villages, is positioning itself as a hub for flying taxis.

Singapore has already signed two agreements with advanced air mobility startups Skyports Ltd. and Volocopter GmbH that may convert the ageing aerodrome into a vertiport, or an airport where the aerial devices take off and land vertically, Jetsons-style.

Singapore's Seletar Airport positioning itself as a hub for flying taxis

ALSO READ - After years in the making and innumerable test flights, VOLOCITY takes to the skies in its maiden flight

It isn’t some way off a dream, either. Plans for flying taxis to be operational at Seletar are pretty immediate -- as soon as 2024 -- and the airport, or vertiport, could serve as a global model for what the future of mobility may look like.

Recent interest in so-called eVTOLs (electric vertical take-off and landing vehicles) has been immense.

Electric cabs stole the limelight at this year’s Singapore Air Show in February with Malaysian tycoon Tony Fernandes of AirAsia fame placing an order to rent at least 100 of them from Vertical Aerospace Ltd. Carriers including American Airlines Inc. and Virgin Atlantic Airways Ltd. have also ordered scores of eVTOLs.

Plans for flying taxis to be operational at Seletar are pretty immediate -- as soon as 2024 -- and the airport, or vertiport

“Singapore is and continues to strive to be, the world leader in mobility, and this development is another brick in that wall,” said Sunny Xi, a principal at consultancy Oliver Wyman’s transportation and services practice. “This is more than simply solving traffic on roads. Singapore has all the right ingredients to test, learn and scale both the mobility adoption and the business to then export it across the world.”

But flying taxis -- until recently the stuff of science fiction -- have one big and crucial hurdle to clear. Not one has been approved by regulators anywhere to take to the skies with passengers onboard.

Authorities can take years to approve new technology and it’s only recently that flying taxis have taken the giant leap from being a concept to reality. Regulators are now examining the safety of such vehicles before green-lighting them for commercial operations.

Volocopter, which predicts SD 4.2 billion (USD 3 billion) of cumulative economic benefits to Singapore

Companies like Volocopter say it’s just a matter of time, and Asia will play a large role in eVTOL adoption.

Volocopter, which predicts SD 4.2 billion (USD 3 billion) of cumulative economic benefits to Singapore and as many as 1,300 local jobs by 2030 from the industry, is showcasing its aircraft in the city-state later this month to increase public awareness.

“In Asia, you have a high concentration of mega cities that you don’t have in any other region. This new industry is innovative, it’s good for inhabitants, for tourists, and also for cross-border connections to relieve the pain of congestion.”Christian Bauer, Chief Commercial Officer, Volocopter

It also talked up the “political benefits” including reduced car ownership and the ability of Singapore to position itself as a torchbearer for the rest of Asia.

Fares for passengers are expected to start at about 40% of the cost of a helicopter, according to Bauer. That could drop to around the price of a premium taxi within five to six years, he said.

“This makes it interesting for anyone who can afford a taxi to take a Volocopter instead,” Bauer said, adding that the company’s service will be “very silent compared to a helicopter. You will not hear it at all.”

Volocopter’s backers include Chinese automaking powerhouse Zhejiang Geely Holding Group Co. as well as German logistics firm DB Schenker

Volocopter’s backers include Chinese automaking powerhouse Zhejiang Geely Holding Group Co. as well as German logistics firm DB Schenker and the venture capital arm of chipmaker Intel Corp. Skyports is supported by Japan’s Kanematsu Corp. and Goodman Group in Australia, as well as Ken Allen, the CEO of DHL eCommerce.

For all the behind-the-scenes work, the burgeoning revolution underway at Seletar isn’t visible yet.

On a recent visit, the airfield was littered with private and small trainer planes, with a few bigger jets in hangars undergoing repairs. Patrons at an aviation-themed bistro overlooking the runway were mostly expats or locals with jobs at nearby plane-maintenance companies.

Inside the terminal, staff were busy guiding a handful of passengers onto a flight to Subang Jaya in Malaysia -- one of the only two commercial services operating from the airport.

Skyports is supported by Japan’s Kanematsu Corp. and Goodman Group in Australia, as well as Ken Allen, the CEO of DHL eCommerce.

With about 82,500 passenger eVTOLs expected to be operational in the Asia Pacific by 2050, the region will account for around half the global market, according to a study by Rolls-Royce Holdings Plc and consultancy Roland Berger released earlier this year.

The flying devices could be used as airport shuttles, for tourist flights or inter-city travel, flying as far as 250 kilometres (155 miles) on a single charge, according to the study. More broadly, eVTOLs’ advancement isn’t limited to just Singapore or Asia.

A unit of Kenya Airways Plc agreed last month to buy as many as 40 flying taxis starting in 2026 from EVE UAM, part of US-headquartered Eve Holding Inc.

eVTOLs’ advancement isn’t limited to just Singapore or Asia.

And England’s Coventry, once known as Britain’s motor city, is gearing up to host what’s being billed as the first-ever fully functional hub for flying taxis this spring.

The site, on a car parking lot at a busy junction across the road from Coventry’s main railway station, is being developed by Urban-Air Port Ltd., a London-based startup that competes with Skyports.

“The good thing is, a couple of years back, we were approaching cities,” said Volocopter’s Bauer. “Now cities are approaching Volocopter because they see the demand, they see this revolutionary change, and they want to be there. Singapore is high on the list.”

Outside of regulatory approval, another hurdle is a range, with eVTOLs’ flying time relatively limited. Potential electrification of popular passenger planes like Airbus SE’s A320s series or Boeing Co.’s 737 family has been largely ruled out due to the immense weight of the batteries that would be required to fly hundreds of miles.

The fact the aerial devices are electric isn’t going to put much of a dent in aviation’s huge carbon footprint, either.

About 80% of the industry’s carbon emissions come from flights longer than 1,500 kilometres, which is why flying taxis won’t be a solution in the near term, the International Air Transport Association’s Director General Willie Walsh said in May. The biggest lobby group for airlines is “conservative” about the impact the technology will have on the industry’s path to net zero, Walsh said.

(With Inputs from Bloomberg)

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Go First grounds over a fifth of its fleet due to delayed deliveries of engines by Pratt & Whitney

Radhika Bansal

05 Jul 2022

Low-fare carrier Go First has grounded more than a fifth of its fleet due to delayed deliveries of aircraft engines by Pratt & Whitney, said three people in the know.

The airline, which is considering an initial public offering, has grounded about a dozen of its 57 planes for weeks as it awaits delivery of the upgraded versions of the PW1100G geared turbofan engines which power the A320neo aircraft.

Go First grounds over a fifth of its fleet due to delayed deliveries of engines by Pratt & Whitney

Go First, previously GoAir had sent the earlier engines to the American manufacturer in January and the upgraded versions were to be delivered in five months, one of the people told The Economic Times.

According to the arrangement, Pratt & Whitney would have sent spare engines in the interim. Those too were delayed. The engine maker has now assured the airline that the new upgraded engines would arrive this week, he added.

Grounding a sizeable number of planes has hit Go First’s operations at a time when air travel demand is picking up. Demand, globally, is also now bouncing back and airlines that had shrunk operations and workforce during the pandemic are now finding it difficult to cope.

Grounding a sizeable number of planes has hit Go First’s operations at a time when air travel demand is picking up.

Airlines in the West have been cancelling thousands of flights for the last couple of months due to staff shortages, throwing global air travel schedules awry. Airports such as Heathrow have been in chaos, unable to accept flight landings, and losing passenger luggage by the thousands.

Manufacturers across the world have faced supply chain issues due to port and factory closures. A global report in March said Pratt & Whitney admitted it would have to delay the supply of 70 engines to plane maker Airbus.

India’s biggest airline by market share shifted to a different engine supplier, CFM International, while Go First stuck to PW.

US plane maker Boeing has delayed the delivery of several planes including its 787 Dreamliners. The Pratt & Whitney engine initially had considerable glitches which led to aircraft shutdowns at former customer IndiGo in 2019.

ALSO READ - Go First files for IPO at INR 3,600 crore valuation

India’s biggest airline by market share shifted to a different engine supplier, CFM International, while Go First stuck to PW. Wadia group-owned Go First is planning a maiden share issue later this year, aiming to raise INR 3,600 crore.

ALSO READ - Go First plans to launch the IPO after months of deliberation; mulls inducting more aircraft

(With Inputs from The Economic Times)

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Safran to set up a MRO facility for LEAP commercial aircraft engines in India

Radhika Bansal

04 Jul 2022

French aircraft engine major Safran is all set to announce a maintenance repair and overhaul (MRO) facility for leading-edge aviation propulsion (LEAP) commercial aircraft engines in India as part of its offset commitments.

The MRO facility said to be based either in Hyderabad or Bengaluru, will be announced on July 5 when Safran CEO Olivier Andres meets Indian Civil Aviation Minister Jyotiraditya Scindia.

The MRO state-of-the-art facility will be set up through a 100% Indian subsidiary route that will not only service some 330 engines used by Indian commercial carriers but also Safran-GE joint venture engines from other countries in South Asia, West Asia, and Africa.

Safran to set up an MRO facility for LEAP commercial aircraft engines in India

For the facility, SAFRAN is bringing in USD 150 million foreign direct investment with plans of moving into MRO of military engines used in Indian Air Force Rafale and Mirage 2000 fighters in the future to push the “Atmanirbhar Bharat” initiative.

The French company is the supplier of M88 engines for IAF’s recently acquired 26 Rafale multi-role fighters and is also the number one helicopter engine supplier to India.

Safran to co-develop with DRDO’s GTRE

Apart from the MRO facility, the French company has also submitted a proposal to the Indian government to co-develop with DRDO’s Gas Turbine Research Establishment (GTRE) a new state-of-the-art 110-kilo newton thrust engine for India’s futuristic advanced medium combat aircraft twin-engine AMCA fighter project. 

Safran to co-develop with DRDO’s GTRE

The cost per engine for 400 engines will work out to 10-12 million euros, which is what we pay for engines today, said a defence expert. That will be for 400 engines, which is what we would need for twin-engine AMCAs if we have 6-7 squadrons. Will probably need more, the expert added.

The Safran offer is not subject to International Traffic in Arms Regulations (ITAR), a US regulatory regime to restrict and control the export of defence and military-related technologies to safeguard US national security and further US foreign policy objectives.

This means that the proposed Safran-GTRE joint venture will be exporting military engines to third countries without being subjected to restrictive regimes.

Tejas program with the LCA is now powered by GE-404 engines.

The French company believes that the new 110 KN engine could be certified by 2035, provided the co-development process gets a green signal this year. The full cost of co-development of the 110 KN engine will be around five to six billion euros.

While the DRDO is also looking at the GE-414 engine to power the AMCA project as an alternative, the Safran offer contains a performance guarantee and transfers all required technology for design, development, production and support besides creating a robust industrial aero-engine ecosystem in India.

The GTRE has been trying to develop the Kaveri aero-engine since 1996 and was originally developed to power Tejas LCA fighters. However, the engine was delinked from the Tejas program with the LCA now powered by GE-404 engines.

(With Inputs from The Hindustan Times)

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