SpiceJet in active discussion with a Middle Eastern carrier for a possible stake sale

Low cost carrier SpiceJet is said to be in active discussion with a Middle Eastern carrier for a possible stake sale.

SpiceJet promoter Ajay Singh holds a stake of around 60% in the budget carrier. Sources said a big Middle Eastern airline has expressed interest to pick a 24% stake and a board seat in SpiceJet. A big Indian business conglomerate has also approached Singh for a stake in the airline.

Singh started the airline in 2004-05, tying up with NRI Bhulo Kansagra who had bought erstwhile Modiluft — that flew from 1993 and 1996 — from industrialist SK Modi in 1999-2000.

SpiceJet promoter Ajay Singh holds a stake of around 60% in the budget carrier.

Reacting to the development, a SpiceJet Spokesperson said, "The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures by applicable regulations."

Earlier, on Tuesday, August 2, SpiceJet said that it entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.

ALSO READ - SpiceJet will no longer remain on a ‘cash and carry’ basis at AAI-run airports; clears all dues

With this, SpiceJet will no longer remain on 'cash and carry' at AAI-run airports across the country and will revert to advance payment mechanisms for daily flight operations. SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in recent times.

SpiceJet is in active discussion with a Middle Eastern carrier for a possible stake sale

SpiceJet's domestic network covers the length and breadth of the country with the airline operating to 51 domestic destinations. Pioneer of the regional connectivity scheme, SpiceJet is the country's largest regional player helping connect the remotest parts of the country by air.

The airline's focus on providing direct flight connectivity to regional hubs not only ensures better connectivity but also has a cascading effect on tourism and economic activity in the region.

SpiceJet has added multiple UDAN destinations to the country's aviation map including Pakyong, Jharsuguda, Kandla, Darbhanga, Kanpur, and Ajmer (Kishangarh), among others.

SpiceJet's domestic network covers the length and breadth of the country with the airline operating in 51 domestic destinations

ALSO READ - Lessor wants 3 SpiceJet aircraft deregistered over unpaid dues

The airline has been under the spotlight after a slew of incidents of technical snags on its flights, and one of its Dubai-based lessors asked the regulator to deregister three of SpiceJet's planes.

ALSO READ - SpiceJet under attack by ransomware; morning flights affected

The airline is yet to release its Q4FY22 results, as the numbers are being re-authenticated due to a ransomware attack that impacted its IT systems.

Shares of SpiceJet climbed nearly 7% in Wednesday's (August 3) trade after it was reported that the airline is in talks with a Middle Eastern carrier for a 24% stake sale.

Jump in shares of SpiceJet

Shares of SpiceJet climbed nearly 7% in Wednesday's (August 3) trade after it was reported that the airline is in talks with a Middle Eastern carrier for a 24% stake sale. The scrip rose 6.65% to hit a high of INR 47.35 on BSE.

The SpiceJet stock rallied 5% on Tuesday, August 2, too, after it announced it had agreed with the Airports Authority of India (AAI) and cleared all outstanding principal dues of the airport operator.

Aerospace giant Airbus on August 2 has signed a contract with aviation infrastructure developer GMR Group to provide aircraft maintenance training to young aviation engineers making a trending career choice.

"GMR will provide the fully integrated Aircraft Maintenance Engineer (AME) licensing program at the GMR School of Aviation in Hyderabad," the company said in a statement.

The four-year course will include two years of classroom training and a two-year training in maintenance, repair, and overhaul (MRO) at GMR Aero Technic in Hyderabad followed by Aircraft Type Training.

Airbus and GMR collaborate to provide training in aircraft maintenance in Hyderabad

According to the contract, Airbus will provide the necessary software and courseware in the form of trainee handbooks, examination database, online access to Airbus customised basic training modules and Airbus Competence Training (ACT) for the Academy media package which is the technical training material required for the courses.

In addition, Airbus will also provide training to GMR instructors along with the assessment of the training centre.

“The partnership with GMR represents a significant deepening of MRO capabilities in India that are required to match the tremendous future demand for such services from the domestic aviation industry. Airbus will continue to contribute to the development of India’s wider aerospace ecosystem, including enhancing its manufacturing and services capabilities through its industrial footprint."Rémi Maillard, President and Managing Director, Airbus India & South Asia

GMR Aero Technic is one of India’s leading third-party MRO (Maintenance, Repair & Overhaul) facilities located at GMR Hyderabad International Airport.

“The aviation ecosystem is evolving rapidly. India is all set to become the largest aviation market by 2030. The increase in air traffic is leading to fast growth in the commercial aviation fleet in the country. To cater to the emerging demand and support the industry, there is a need for skilled professionals.”Ashok Gopinath, CEO, GMR Aero Technic

Commencing this year, the programme will be open to aspirants who have cleared their Higher Secondary Certificate (Class 12) examination with Physics and Mathematics as their main subjects. According to the Airbus Global Market Forecast 2022, India will require some 45,000 new aircraft technicians over the next 20 years.

The global air transport industry adopted a long-term climate goal of net-zero carbon emissions by 2050 in October of last year, confirming the commitment of the world’s airlines, airports, air traffic management and the makers of aircraft and engines to reduce CO2 emissions in support of the Paris Agreement 1.5ºC goal. This was an update to an earlier industry-wide goal that was set way back in 2009.

Representative | Strategy- PwC

Since then, multiple decarbonisation solutions have been pushed to the fore, some of which include technology innovation in aircraft design, new fuels like hydrogen and SAF, efficiency improvements in airport operations and air traffic management, and market-based measures.

Reportedly, according to the Intergovernmental Panel on Climate Change (IPCC), simply eliminating emissions will not be enough for the world to reach net zero by 2050, removing C02 from the atmosphere would have to be thrown into the list of measures as well, if 2050 climate goals are to be practically met.

Airbus has therefore partnered with 1PointFive to bring carbon removals from direct air capture technology to the aviation industry.

So what is Direct Air Carbon Capture and how does it work?

Direct Air Carbon Capture and Storage (DACCS)

Carbon Engineering, a company based in Canada has pioneered a direct air capture technology at its pilot plant in Squamish, Canada and has now set its sights on large-scale deployment. 1PointFive-Carbon Engineering’s licensed US partner is developing these facilities at a megaton scale in the United States and elsewhere. Once operational, this facility is expected to capture up to one million tonnes of CO2 from the air per year- roughly equivalent to the work or absorption capacity of approximately 40 million trees.

https://www.youtube.com/watch?v=Rf7pTfCxNW4&t=137s

The technology behind it

A large fan draws air into an air contactor, which is modelled on industrial cooling towers. The air passes over thin plastic surfaces with a non-toxic potassium hydroxide solution flowing over them to trap the CO2 molecules as a carbonate salt.

Green Car Congress

A pellet reactor is used to separate the carbonate salt from the solution and the carbon pellets are then heated in a calciner to release the CO2 as a pure gas.

The processed pellets are hydrated in a device called a “slaker” and recycled for use in the original capture solution.

Carbon Engineering

The captured pure CO2 can then either be stored underground or reused for the production of, for example, Power-to-Liquid fuel through a complementary process called AIR TO FUELS. The former, known as carbon storage or sequestration, involves injecting the CO2 into saline formations more than a kilometre below the earth’s surface. As a result, CO2 is permanently and safely stored underground.

Airbus

Airbus has pre-purchased the capture and permanent sequestration of 100,000 tonnes of carbon dioxide (CO2) from the atmosphere each year for four years in an agreement signed with 1PointFive.

We're proud to partner with Airbus on an enormous opportunity to help the aviation industry and other hard-to-abate sectors decarbonize. Direct Air Capture will be a scalable, practical solution that aerospace pioneers like Airbus can integrate into their decarbonization roadmaps to contribute to climate actionsaid 1PointFive CEO Michael Avery

Reportedly, several airlines have shown interest to collaborate with Airbus in this area to promote direct air capture as a necessary means toward achieving net zero emission goals by 2050.

SOURCE: Airbus

COVER: Clean Future

Chennai’s long wait for its second airport is set to end as Parandur near Sriperumbudur has been chosen as the site to construct the greenfield facility.

As per the provisions of the Greenfield Airport Policy (2008), the state government is now required to submit a proposal to the Ministry of Civil Aviation (MoCA) for a grant of ‘site clearance’.

Talks to establish a second airport for the city resumed early this year, and the State government requested the Airports Authority of India (AAI) to execute a feasibility study for the project. Four sites – Pannur, Parandur, Tiruporur and Padalam – were identified, and the AAI team inspected each site and submitted a report.

The Tamil Nadu govt has shortlisted the site located around 60 km southwest of the existing airport.

ALSO READ - Construction of the second airport in Chennai to begin soon; Centre to hold the majority stake

Pannur and Parandur were then shortlisted. After studying the various prospects in both locations, the State government held a meeting with the Centre recently to choose the site.

Post meeting, Tamil Nadu Industries Minister Thangam Thennarasu said the Civil Aviation Ministry had expressed its willingness to go along with what the State government recommended.

The site at Parandur is located in Kancheepuram district, and according to the report prepared by AAI, it is 60 km southwest of the existing Chennai airport.

It will have two runways, terminal buildings, taxiways, apron, cargo terminal and other required amenities.

The report also states: “The average distance travelled by a passenger to Parandur airport will be 73 km, and the average time taken will be 1 hour and 54 minutes as against the 21 km and 54 minutes taken to travel to the present Chennai airport.”

Tamil Nadu Chief Minister M K Stalin announced that a second airport for the city would come up at Parandur near here at an estimated INR 20,000 crore with an annual capacity of 10 crore passengers. It will have two runways, terminal buildings, taxiways, apron, cargo terminal and other required amenities.

In a statement, CREDAI Chennai while welcoming the decision to set up the airport at Parandur said the second airport for Chennai would give a big push to the aviation sector.

The airport will be located on around 4,971 acres of land.

The new airport location would be placed on the global logistic map and would get a boost with more real estate developments, whether it is residential, commercial, retail or hospitality sectors, CREDAI said.

The site that they have finalised is over 4,791 acres, and of this, 2,605 acres fall under the wetland category, while the remaining 827 acres are dry land, the report stated. This could be an ideal two-runway airport, but if parallel runways were to be built then an additional 200 acres of land would have to be acquired.

The report looked at multiple options of operational efficiency of using the new and the existing airports simultaneously. The report has looked at the obstacles present in and around the site.

With Chennai airport’s air travel to grow annually at 15 to 20%, a greenfield airport will be required in 7-8 years — the same time frame that will be required to build a greenfield airport.

In June, the Union minister said the airport was likely to come up with an investment of INR 40,000 crore and it would be cleared shortly. The recent development of the new airport also comes as the Chennai Airport looks at the other side of the Adyar River for its expansion.

With Chennai airport’s air travel to grow annually at 15 to 20%, a greenfield airport will be required in 7-8 years — the same time frame that will be required to build a greenfield airport.

SpiceJet said on Tuesday, August 2 that it has cleared all the outstanding principal dues to the Airports Authority Of India (AAI). As a result, AAI will release a 50 crore bank guarantee which will provide further liquidity to the company.

The AAI had in 2020 put SpiceJet operations on a "cash and carry" basis possibly due to the carrier's non-payment of airport dues.

SpiceJet will no longer remain on a 'cash and carry' basis at AAI-run airports. The company said that it will revert to an advance payment mechanism for daily flight operations.

SpiceJet will no longer remain on a 'cash and carry' basis at AAI-run airports; clears all dues

ALSO READ - Multiple SpiceJet flights halted by Delhi ATC for non-payment of daily airport user fees to AAI

In the ‘cash and carry’ model, the airline has to make daily payments to the AAI for various charges — navigation, landing, parking, and others — to operate flights.

“In another big boost for the airline, AAI will release SpiceJet’s INR 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline.” SpiceJet

SpiceJet has flown with the highest passenger load factor in the Indian skies for a record seven years. Starting April 2015, the airlines have recorded the highest occupancy among all Indian domestic airlines - a feat unparalleled in global aviation.

The airline also holds the envious distinction of having flown with a Passenger Load Factor (PLF) of more than 90% for a record 58 consecutive months.

SpiceJet has flown with the highest passenger load factor in the Indian skies for a record seven years.

The airline's domestic network covers the length and breadth of the country with it operating to 51 domestic destinations. Pioneer of the regional connectivity scheme, SpiceJet is the country's largest regional player helping connect the remotest parts of the country by air.

The airline's focus on providing direct flight connectivity to regional hubs not only ensures better connectivity but also has a cascading effect on tourism and economic activity in the region. SpiceJet has added multiple UDAN destinations to the country's aviation map.

SpiceJet has been making losses for the last four years. It incurred net losses of INR 316 crore, INR 934 crore and INR 998 crore in 2018-19, 2019-20 and 2020-21, respectively.

SpiceJet has added multiple UDAN destinations to the country's aviation map.

In the April-December period of 2021, the airline posted a net loss of INR 1,248 crore. The airline is yet to declare results for the January-March period of 2022.

ALSO READ - DGCA orders SpiceJet to operate only 50% of approved flights

Earlier, in light of multiple technical malfunctioning incidents reported between April 1 and July 5, DGCA had on July 27 acted on its show-cause notice to SpiceJet and cut the airline's operations to 50% of its current departures that were approved under the summer schedule.

DGCA had on July 27 acted on its show-cause notice to SpiceJet and cut the airline's operations to 50% of its current departures that were approved under the summer schedule.

The aviation regulator had issued a show-cause notice to the airline saying it had failed to "establish safe, efficient and reliable air services".

SpiceJet is an IATA?IOSA certified airline that operates a fleet of Boeing 737s, Q?400s & freighters. It is the country's largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme.

The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on?time, efficient and seamless cargo connectivity across India and on international routes.

Kozhikode Airport in South India has been recommended to extend the runway. But for many residents of the surrounding area, this means severe restrictions on any construction activity around the airport. Although the runway has not yet been expanded, some local residents have spoken out against the project.

To build anything within the specific limits of the airport, residents have to first get a no-objection certificate (NOC) from the Airports Authority of India (AAI), which has been quite challenging to get lately.

It was on August 7, 2020, that the Dubai-Kozhikode Air India Express flight carrying 190 people onboard overshot the Kozhikode tabletop runway and then plunged 35 feet into a gorge.

The Air India Express plane, skidded off the tabletop runway while landing, in Kozhikode.

The crash killed 21 people including the two pilots and left 84 people injured. The tragedy brought back into the spotlight the issue of the long-pending runway expansion.

Kozhikode is one of three tabletop runways in India and is considered especially tricky for landings. This is because, unlike runways which are on the plains, a tabletop runway is constructed by chopping off a hill or is located on a plateau or a raised platform.

Aviation experts have noted that on tabletop runways, aircraft landings require both precision and skill as it creates an optical illusion for the pilot - making it seem that the runway extends into the distance, presenting a real risk of overshooting.  

AAI recommends runway extension for Kozhikode airport.

ALSO READ - The final report out on the Kozhikode air crash hints at human error and non-compliance to SOPs

The Air Accidents Investigation Bureau (AAIB) found pilot error to be the likely cause of the crash, along with system problems at AI Express. However, the incident raised the question of an extra layer of security around the airport’s runway to prevent such incidents in the future.

In May, a special government committee observed that the end of the 90-metre runway end safety area (RESA) in Kozhikode should be covered with sand or soil 15 cm deep to stop aircraft from flying beyond the limits. While the expansion of the runway at Kozhikode appears to be a necessary step to ensure aviation safety, the authorities may face more protests.

ALSO READ - AAI recommends runway extension for Kozhikode airport

The people of Palakkaparambu in ward 30 of Kondotty Municipality are up in arms against the Airport Authority of India’s (AAI) move to expand the Calicut airport runway further. They say they have surrendered their land for the airport and its expansion several times, and any further acquisition of land will render them homeless.

"We have surrendered our land 11 times for the airport and its multi-phased expansion. As many as 30 hillocks in the area were levelled for this tabletop airport. We sacrificed our land and many facilities that we had for the airport, which we considered as ours. Now we are being pushed against the wall in the name of further expansion, and there is no way that we will surrender our last piece of land.The airport, in which the people used to take pride, had become an irritant for the people who surrendered land for it. We need the permission of the AAI for any construction now."K.P. Firos, Municipal Councillor from Palakkaparambu

A ten-day protest against the move for a fresh round of land acquisition for Runway End Safety Area (RESA) expansion on the eastern side of the airport concluded on Tuesday with a human chain. The Palakkaparambu Agitation Council is spearheading the protest against the land acquisition.

During the rains, dozens of women and children joined the human chain held as part of the protest. They took a pledge not to give any more land to the airport.