Singapore Airlines reports profit for the first time since Covid-19 outbreak

Radhika Bansal

28 Feb 2022

Singapore Airlines Group reported a net profit of SGD 85 million (USD 62.8 million) for the third quarter ended December 31, marking the company's first profit since the COVID pandemic began. The airline credits its success to increased cargo revenues and passenger numbers as a result of Singapore's Vaccinated Travel Lane (VTL) programme.

Singapore Airlines Group (SIA) has reported its first profit since December 2019, thanks to increased passenger traffic and a record quarter for cargo operations. The airline earned SGD 85 million (USD 62.8 million) in net profit on total revenues of SGD 2.32 billion (USD 1.71 billion), up from SGD 1.07 billion (USD 791 million) the year before.

Singapore Airlines Group reported a net profit of SGD 85 million (USD 62.8 million)

Singapore Airlines Group said, "The Singapore Airlines (SIA) Group posted a quarterly profit for the first time since the onset of the pandemic, recording a third-quarter net profit of USD 85 million. This came amid a significant step-up in air travel to and through Singapore in the October-December 2021 period, as well as continued robust demand and strong yields in the cargo market."

Operating profit increased to SGD 76 million (USD 56 million), a significant improvement from the same quarter last year's operating losses of SGD 331 million (USD 245 million).

Scoot had 50 passenger aircraft in its operating fleet.

Despite a much-improved quarterly performance, net losses for the first nine months reached SGD 752 million (USD 556 million). This is nevertheless a significant improvement over the previous year's net losses of SGD 2.85 billion (USD 2.11 billion).

The loosening of travel restrictions in Singapore with the implementation of the VTL programme was particularly significant. SIA served about 1.1 million passengers, more than five times the number a year ago and more than doubling Q2 2021. Singapore Airlines handled 966,000 passengers, while Scoot, the airline's budget affiliate, handled the rest.

SIA took delivery of one Airbus A350 and four Boeing 737-8 aircraft

During the quarter, the strong demand for VTL services enabled the reactivation of A380 operations to London and Sydney. SIA took delivery of one Airbus A350 and four Boeing 737-8 aircraft, while Scoot took delivery of two A321neo aircraft.

These aircraft will progressively join the operating fleet starting from January 2022. As of 31 December 2021, SIA’s operating fleet comprised 121 passenger aircraft and seven freighters while Scoot had 50 passenger aircraft in its operating fleet.

SIA's cargo operations raked in record revenues for the quarter

SIA's cargo operations raked in record revenues for the quarter, in addition to an increase in passenger numbers. For the first time, the airline's cargo revenues surpassed SGD 1 billion, growing by 81% from SGD 744 million (USD 550 million) to SGD 1.35 billion (USD 999 million).

By the end of the quarter, Group passenger capacity reached 45% of pre-Covid-19 levels. The Group expects to serve over 70% of its total pre-Covid destinations by the end of its financial year which concludes on March 31, 2022.

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How the Russia-Ukraine encounter could potentially alter the global airspace map

Prashant-prabhakar

27 Feb 2022

To a layman, flying might be as simple as charting the shortest flight route from departure to destination and getting from point A to point B directly. While that might be true to an extent, the reality extends well beyond that. Security and geopolitical factors determine flight paths and tickets way more than the former.

Russia's invasion of Ukraine and subsequent aviation bans from multiple countries now are creating ripple effects, as we can see, with many "no-go' areas in the sky- an effect which can have major implications for long-haul carriers that overfly the airspace of Eastern Europe en route to Asia.

Closed Ukrainian airspace after Russian attack | AVweb

Russia is the only country that controls the air traffic between East Asia and Europe- regions that make up a third of the world's total population. In addition to significant economical activities, these regions also boast some of the most powerful cities in the world.

The overflight of Russian airspace hadn't been possible until recently.

A brief history

During the Cold War Era, foreign airlines were barred from flying over the Soviet Union, thereby making it difficult to traverse between Europe and a major part of Asia.

In 1950, British Airways took off at 10 a.m. on Friday from London bound for Tokyo. The trip included stops in Rome, Beirut, Bahrain, Karachi, Calcutta, Yangon, Bangkok and Manila before arriving in Tokyo. The journey lasted 36 hours flying over 10,000 miles. At the time, it was the fastest way to travel between these two cities.

In the 1960s, Anchorage- a small town in Alaska with barely 40,000 inhabitants became the intermediate point between Europe and Asia. Today, Anchorage has only a few regional routes within the United States, and in the 1970s, Air France, SAS, KLM, Iberia, Lufthansa, Japan Airlines, Korean Air and many others flew daily to this city.

Before 1990 | South China Morning Post

By 1983, operators began to fly directly between Europe and Asia without halting at Anchorage and this was mostly due to the introduction of technologically advanced airplanes with enhanced range.

After the collapse of the USSR in 1991 and with China easing restrictions on its airspace, airlines were then allowed to overfly Russia, adopting more fuel-efficient routes.

After 2000 | South China Morning Post

How is it significant today?

Given that overflying Russian airspace saves airlines tons of money and fuel, Russia has repeatedly used its airspace in recent and distant history in geopolitical terms, to charge airlines flying over it. Although the exact figures remain unknown, airlines pay an exorbitant amount to overfly Russian territory.

It's a fact that Russia is the sole entity deciding who gets to fly over their territory and hence these rights are generally given by one airline in each country- for instance, Lufthansa for Germany, Air France for France, and many others.

Aeroflot- the only Russian registered aircraft flying into the UK | Representative | Wikipedia

It is to be noted here that, low-cost carriers flying long haul are never given the right to overfly Russian territory and this raises questions as to how low-cost airlines would be interested in flying through Russian airspace at all.

Airspace as a means of leverage during political negotiations

Oftentimes, countries use their airspace to the best of their economic advantage, especially during political negotiations to negotiate diplomatic issues. The resulting increased fares are, of course, passed on to the travellers.

Here's a practical example for better perspective:

Airfares in Europe are determined by a combination of- distance, the plane’s weight, and airspace fees.

If you were to fly an A320 from Barcelona to Copenhagen, the overall fare would cost  €1,572 (including airspace fees from 6 countries)

How?

Breakdown:

Distance * Weight factor * Unit Rate

For an A320 weighing 77 metric tons with a weight factor of 1.24 flying from Spain to Denmark, the following charges would be incurred.

Representative | South China Morning Post

How does the current escalating situation add to the woes of global aviation operations?

Currently, the United Kingdom, Poland, Czech Republic, Lithuania, Latvia have begun imposing overflying and landing restrictions to all Russian registered aircraft, with many others beginning to follow suit.

Representative | Reuters

In response, Russia has also barred all fights from the UK entering Russian territory.

Because of Russia's geographic scale, overflights from airlines all over the world pass through Russian airspace each day. From the UK, normally about a dozen flights each day pass through Russia en route to places like Hong Kong and India. From the EU, hundreds of flights each transit through Russia en route to destinations in Asia. And from the US, most cargo traffic between the US and Asia passes through at least a small portion of Russian airspace.Mikael Robertsson, co-founder of aircraft tracking service Flightradar24, tells CNN

Representative | Financial Times

There is a growing consensus that many other countries might join the UK in banning Russian airplanes from flying into their territory. If that's to happen, Russia would then likely retaliate, meaning more detours either north or south. Additionally, it might also ban overflights destined for any sanctioned country.

As tensions and insecurities rise over the escalating political issue on both sides of the border, more overflying bans can be expected, which may well change the entire course of how we fly.

SOURCE(s)

COVER: European Defense Agency

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Pune Airport to lease land from the Defense Ministry to expand its cargo terminal

Radhika Bansal

27 Feb 2022

 The Pune airport expansion project has received a major boost after the Ministry of Defence (MoD) agreed to lease 2.5 acres of defence land parcel and grant working permission to begin work on the cargo terminal at the Lohegaon airport.

In a letter written to Pune Member of Parliament (MP) Girish Bapat, the civil aviation minister Jyotiraditya Scindia has said that the MoD will charge a nominal fee of INR 1 per year and grant working permission to begin work on the cargo terminal at the Lohegaon airport.

“I would like to apprise you that ministry of defence has agreed to charge a nominal lease of INR 1 per annum for the land parcel of 2.5 acres of land on which working permission has been granted; till the land of equal value is transferred to MoD instead of the total land of Air Force required at Pune airport,” Scindia stated in his letter written on February 15.

Earlier in September 2021, Nitin Gadkari, the Union minister for road transport and highways and the chairman of the infrastructure committee of the government of India, had said that the Indian Air Force (IAF) has agreed in principle to handover additional land to Lohegaon airport for its expansion.

In his letter, the civil aviation minister further said, “The two ministries (MoD and civil aviation) are working in close coordination to resolve various pending issues at Pune airport. The letter came days after MoD issued a corrigendum bringing down the lease amount from INR 1.38 crore per annum INR 1.

Pune Airport Is a Major Hub for Covid Shield Vaccine Storage

The additional land will help Pune to augment its cargo facility as the airport has emerged as an important centre as stocks of Covishield vaccine, manufactured by Serum Institute of India (SII), are sent out from here. Larger consignments of the vaccine, however, are transported by road to the Mumbai airport and flown from there. The new space would help increase the volumes transported.

The MoD’s decision to give land at a nominal rate was welcomed by Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) president Sudhir Mehta.

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UP government to purchase extra 7.9 hectares of land for Noida Airport

Radhika Bansal

26 Feb 2022

The Uttar Pradesh government will purchase 7.9 hectares of land from the villagers to construct a boundary wall circling the upcoming Noida International Airport. Jewar district’s sub-divisional magistrate is in charge of buying the land for the purpose by March 31, 2022.

The state government intends to pay twice the amount of circle rate for the land. The land will be 56 scattered plots instead of a whole land.

According to Arun Vir Singh, the Chief Executive Officer of Yamuna Expressway Industrial Development Authority (YEIDA), a portion of the boundary wall is already constructed. The additional purchase is to complete the remaining part.

UP government will purchase 7.9 hectares of land from the villagers to construct a boundary wall circling the upcoming Noida International Airport.

A monitoring committee, comprising officials from the irrigation department, sewage treatment plant, power corporation, district magistrate, a general manager and an officer, are monitoring the day-to-day progress of the work. Barricades are raised around the entry and exit points of the airport.

The government already purchased 1400 hectares of land from the villagers for Noida airport during phase one development. Noida airport will be constructed in four phases and will be the biggest in the country once completed. The airport will have five to six runways spread across 5000 hectares.

Meanwhile, YEIDA has approved the Detailed Project Report (DPR) for the Noida Pod Taxi Project, which is proposed to connect Greater Noida to Jewar airport. The project, estimated at INR 810 crore, was prepared and submitted by Indian Port Rail and Ropeway Corporation Limited.

Noida Pod Taxi will be a driverless pod taxi with 12 stations between Noida International Airport and Film City in Noida Sector 12. The taxi service will charge Rs 8/km for the rides. The pod taxi will run at a frequency of 20 seconds.

Hi-tech pod taxis are popular in western countries, and they are cost-effective and convenient for passengers. As they are battery-operated, carbon emissions are less, making it a green initiative.

One taxi can accommodate up to six passengers, making it a more viable option than transportations like buses, which will run with empty seats when there are fewer passengers. Moreover, the accident rates of pod taxis are said to be zero.

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RSS asks the government to not give clearance to the newly appointed Air India CEO

Radhika Bansal

26 Feb 2022

RSS-affiliate Swadeshi Jagran Manch Friday, February 25 said the government should not give clearance to the appointment of Ilker Ayci as the Chief Executive Officer and Managing Director of Air India "keeping in view national security".

SJM's co-convenor Ashwani Mahajan said the government is "already sensitive" to the issue and has taken up the matter "very seriously".

"We feel that government should not give its permission (to Ayci's appointment) keeping in view national security. I think the government is already sensitive to the issue and has taken up the matter very seriously. I don't think the government will approve it," he told PTI.

SJM's co-convenor Ashwani Mahajan said the government is "already sensitive" to the issue and has taken up the matter "very seriously".

When asked for the reasons why the SJM is opposed to the newly appointed CEO and MD, Mahajan reiterated that it's a matter of national security. "After all, decisions are taken about a person based on his relationships."

On February 14, Tata Sons announced the appointment of Ayci, former chairman of Turkish Airlines, as the Chief Executive Officer and Managing Director of Air India.

Announcing his appointment, it said in a statement that Ayci will assume his new responsibilities on or before April 1. The statement also added that Ayci's appointment to the new position is subject to the requisite regulatory approvals.

Since Ayci is a Turkish national, the MHA is expected to take help from the external intelligence agency, R&AW, for his background check.

The Ministry of Home Ministry (MHA) "scrupulously" carries out a thorough background check of all foreign nationals when they are appointed to the key positions of any Indian company.

ALSO READ - MHA to conduct a thorough background check on the newly appointed CEO of Air India

It will be the same process for the newly appointed CEO and MD of Air India as well, official sources have said. Since Ayci is a Turkish national, the MHA is expected to take help from the external intelligence agency, R&AW, for his background check.

Ayci was an advisor of Turkish President Recep Tayyip Erdogan when the latter was mayor of Istanbul, from 1994 to 1998. He also served Turkish Airlines as its chairman from 2015 to 2022 and was credited with turning the airline around.

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Trainer Cessna aircraft crashes in Telangana, pilot dead

Radhika Bansal

26 Feb 2022

A trainer aircraft crashed in Telangana's Nalgonda on Saturday, February 26. The female trainee pilot, identified as 28-year-old G Mahima from Tamil Nadu, died in the crash. The details of other people on board are yet to be known. 

The aircraft - a Flytech Aviation Cessna 152 - had taken off from Macherla in the Guntur district of Andhra Pradesh. It is believed that it hit an electric pole before crashing to the ground.

The aircraft came crashing down in the fields between Chelakurthi and Thungathurthy village limits. It was flying across the Andhra Pradesh-Telangana border and crashed in an agricultural field in Tungaturthi village of Nalgonda district in Telangana.

The aircraft belonged to a private aviation academy called Flytech Aviation Academy. The victim, G Mahima, was pursuing a commercial pilot course at the institute.

Farmers who were working in their fields at Tungaturthi village of Peddavoora Mandal noticed the aircraft crashing down in the fields and rushed to it. They tried to douse the fire and rescue the pilots on board. Further rescue operation is on.

Eyewitnesses said they saw the aircraft coming from Nagarajuna Sagar's side, crashed and exploded in the fields. "When we rushed to the spot, we saw bodies in them," they said. DGCA's accident investigation team has inspected the crash site and will submit its report on findings soon.

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