SpiceJet likely to de-register 2 more Boeing 737s

Lessors of two more aircraft currently with SpiceJet have approached the Directorate General of Civil Aviation (DGCA) to de-register their planes rented to the airline.

These latest requests come after similar pleas for de-registering four Boeing 737s leased to the low-cost carrier in the last month which were then re-possessed by the lessors. An Ireland-based lessor filed the latest requests on August 25 for two B737s, VT-SPU and VT-SGQ.

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

All these requests have been made under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA) which is a part of the Cape Town Convention and provides for the owner of an aircraft to get an aircraft de-registered from the name of a third party in cases like the default of lease rentals. The regulator has to decide on the lessors’ IDERA request within five days.

SpiceJet will likely lose two more aircraft to another lessor.

About the earlier requests for de-registering four B737s, the airline had essentially said it is phasing out the old fuel-inefficient planes and will add the frugal B737 MAX to its fleet.

ALSO READ - Spicejet looking for a “knight in shining armour” to help with financial distress

SpiceJet promoter Ajay Singh is scouting for funds from external parties, including airlines, through a stake sale to the carrier afloat. The shareholders of SpiceJet, which is a listed company, have approved fundraising of Rs 1,500 to Rs 2,000 crore, and some of the amounts have already been raised, Singh had recently said.

The DGCA has since last month limited the cash-strapped airline’s operations to 50% of its schedule and will allow an increase in flights only if it can prove to have “sufficient, technical support and financial resource to safely and efficiently undertake such enhanced capacity.”

After 4 planes, the Irish firm asks DGCA to de-register 2 more Boeing 737s leased to Spicejet.

SpiceJet has begun searching for investors to fund the airline. The airline needs to raise millions to build a financial foundation that is strong enough to convince the DGCA that SpiceJet is ready to return to operating its full schedule. 

The airline, which currently has 60 operational planes, hopes to add at least seven more by the year-end.

With inputs from TOI.

For budget-conscious Indian tourists, the east has emerged as the most viable option due to sky-high airfares to the west and visa delays for the US, Canada, UK and Schengen nations of Europe.

Nations like UAE, Thailand, Vietnam, Singapore, Malaysia and Maldives have become go-to destinations for budget travellers.

Value-for-money tourists have little option but to go east. Apart from prolonged visa delays, airfares to the west are at unheard-of levels. One-way economy fares on Delhi-Milan and Delhi-Vancouver routes on September 5 are Rs 1.1 lakh and Rs 2.2 lakh, respectively, due to the student rush. Average return fares from India to New York and London are starting at Rs 1.5 lakh.

Common return fares from India to New York and London are beginning at Rs 1.5 lakh. 

A Canadian visa is still taking almost six months to be processed, while the US is allowing travellers to only book visa appointment slots starting next year. UK visas are taking around six weeks, and people have the option of fast-tracking their applications by paying an additional fee.

”Average airfares to Canada, US and UK have increased by a minimum of 70% (August 2022 over January 2020) while short-haul destinations like UAE, Thailand, Singapore and Maldives have seen a much subdued increase, ranging from 16-40%, over the same time period. Airfare is one of the many factors that influences a traveller’s decision. Other factors include expenses at the destination and ease visa availability. We have observed that recovery for key short-haul destinations versus pre-Covid like UAE, Maldives and Saudi Arabia is 15% higher than the recovery of top long-haul destinations (US, UK and Canada). Within short-haul destinations, Maldives, UAE and Saudi Arabia are witnessing strong recovery in the range of 80%-110%." Saujanya Shrivastava, MakeMyTrip COO 

While an all-inclusive 5-6 day trip to Thailand and Vietnam will cost less than Rs 1 lakh, Singapore and Malaysia will cost a little more, say, travel agents.

Visa delays and excessive fares push Indian vacationers to shift focus.

Indian tourists are being assiduously wooed by tourism boards of almost all countries as they look for a post-Covid recovery of fortunes. Now countries that offer easier access are seeing more footfalls from India. 

Airfare is one of the many factors that influence a traveller’s decision. Other factors include expenses at the destination and ease of visa availability.

(With Inputs from The Times of India)

Passengers aren’t the only ones paying more to fly this year. A tight supply of aircraft is driving up the price airlines pay to rent planes, just as travel demand returns.

The rent on a new Boeing 737 Max rose more than 20% between April 2020 and this July to USD 316,000 a month, estimates aviation advisory firm IBA Group.

ALSO READ - Boeing considering recycling stored 737 MAX engines for new aircraft

The competing Airbus A320neo climbed to USD 324,000 a month, up more than 14% from April 2020, and the highest price since before the Covid pandemic. The larger version, the A321neo, was going for USD 375,000 per month in July.

Soaring rents hit the aircraft market as travel demand returns amidst a tight supply of aircraft

The world’s largest aircraft leasing firms, like Air Lease, Avolon and AerCap, which acquired GE’s airplane leasing business last year, are reaping the benefits.

More than 51% of the world’s nearly 23,000 single- and double-aisle jetliners are owned or managed by leasing firms, according to aviation consulting firm Cirium. While many airlines do own their aircraft, some carriers choose to rent planes instead or combine the two.

Reasons for leasing vary and include weak credit ratings that drive up borrowing costs, and the desire, or need, to conserve cash, rather than shelling out to buy new planes, which can run more than USD 100 million apiece at list prices.

The larger version, the A321neo, was going for USD 375,000 per month in July.

The higher costs come as airlines are already facing high inflation, resulting in expenses that usually get passed along in fares. Aircraft rents are approaching or in some cases surpassing 2019 prices, and they’re set to go even higher. This year’s surge in oil prices makes newer, fuel-efficient planes more attractive than older ones, and higher interest rates could also drive up lease rates.

“You have the rising interest rates and higher cost of capital,” said Mike Yeomans, director of valuations and consulting at IBA. “That will push lease rates higher through the rest of the year.”

Leasing firm executives told CNBC that many of their customers are extending leases, with new planes hard to find.

The higher costs come as airlines are already facing high inflation, resulting in expenses that usually get passed along in fares.

Steven Udvar-Hazy, executive chairman of Los Angeles-based Air Lease, said that the company’s lease extension rate is nearing a never-before-seen 90% and that it usually runs about 65% to 75%.

“We’re seeing a lot of lease extensions on planes that a year ago we projected that we would have to remarket,” said Udvar-Hazy. That means the company doesn’t have to worry about transition costs and it gives the lessor a steady stream of income.

The trend is the result of a resurgence in airline bookings while Boeing and Airbus – still recovering from a demand and production lull during the earlier days of the pandemic along with supply chain issues – are unable to ramp up production as much as they would like to.

The trend is the result of a resurgence in airline bookings while Boeing and Airbus – still recovering from a demand and production lull during the earlier days of the pandemic along with supply chain issues

Global passenger traffic rose by 76% in June from a year earlier, but is still down about 29% compared with before the pandemic, according to the International Air Transport Association’s latest available data. Hazy said interest rates would have to climb higher and remain elevated to significantly dent travel demand.

For now, airlines are “now looking at a world where they can actually deploy more aircraft,” said Andy Cronin, Dublin-based Avolon’s CEO designate. “We’re definitely seeing a shortage of aircraft and accelerating demand over and above what we would have expected at this stage.”

Cronin said lease rates for Boeing Maxes and Airbus A320neos have risen by 10%-15% so far this year.

Global passenger traffic rose by 76% in June from a year earlier but is still down about 29% compared with before the pandemic

Supply chain problems and labour constraints have challenged manufacturers from increasing production. Part of the issue stems from sanctions on Russia that have crimped titanium supplies since that country invaded Ukraine in February.

Raytheon’s CEO, Greg Hayes, last month acknowledged that some customers would feel the impact of supply shortages. “Now we’re not talking about dozens and dozens of aircraft, but you’re talking five to 10 airplanes ... that are going to be without engines because we don’t have the titanium forgings that we had expected to get this year,”

Hayes said on an earnings call last month, referring to the conglomerate’s Pratt & Whitney engine unit. “We’ll work through it, but it’s not going to be without a little bit of pain to our customers.”

(With Inputs from CNBC)

A pilot of a prominent airline has been removed from flight duty after he failed a drug test, a senior DGCA official said on Friday, August 26.

He is the fourth pilot to fail the drug test since the procedure for examination of aviation personnel for consumption of psychoactive substances came into effect on January 31. The test is done for the flight crew and ATCs on a random basis.

ALSO READ - Two pilots of leading Indian airlines fail dope tests

So far, four pilots and one Air Traffic Controller (ATC) have tested positive for psychoactive substances.

ALSO READ - ATC at Delhi Airport removed from duty by DGCA as he tests positive for psychoactive drug

The drugs to be tested for include amphetamine and amphetamine-type stimulants; opiates and metabolites; cannabis (marijuana) as THC; cocaine; barbiturates and benzodiazepine.

According to the official, a pilot of a prominent airline was subjected to a drug test in the national capital. He was found positive in the confirmatory test report received on August 23 and has been removed from flight duty. However, details about the airline or pilot were not disclosed.

The drugs to be tested for include amphetamine and amphetamine-type stimulants; opiates and metabolites; cannabis (marijuana) as THC; cocaine; barbiturates and benzodiazepine.

As per the Civil Aviation Requirement (CAR), in case the result of the confirmatory drug test is positive for the first time, then the person concerned will be referred to a de-addiction centre by the organisation concerned for de-addiction and rehabilitation.

ALSO READ - DGCA orders pre-flight alcohol tests for 50% of pilots and cabin crew daily

The urine samples are collected at the collection site, at the designated secure facility established by the airline and the test is carried out post-flight or anytime during the duty period.

The urine samples are collected at the collection site, at the designated secure facility established by the airline and the test is carried out post-flight or anytime during the duty period.

Breath analyser (BA) tests to ensure aviation personnel are sober when they report for work have been conducted for several years. The DGCA had for the first time made dope tests mandatory for pilots, cabin crew and air traffic controllers earlier this year. At least 10% of the personnel in an organisation have to undergo dope tests annually.

If the same person tests positive for the second time, then his or her licence will be suspended for three years. And if the violation happens for the third time, then the personnel's licence will be cancelled.

The DGCA had for the first time made dope tests mandatory for pilots, cabin crew and air traffic controllers earlier this year.

In the introduction to the CAR, the Directorate General of Civil Aviation (DGCA) mentioned that the worldwide spread of the use of psychoactive substances, their general availability and the ever-increasing number of addicted users is a serious concern to aviation safety.

"Their use causes behavioural, cognitive and physiological changes. This manifests in dependence, major health-related issues and negative effect on performance," it had said.

Citing a study conducted by the Ministry of Social Justice and Empowerment and a subsequent report published in February 2019, DGCA had said after alcohol, cannabis and opioids are the most commonly used psychoactive substances in India

H2FLY, a Stuttgart-based company that develops hydrogen fuel cell technologies for aircraft, announced it has achieved another step towards commercial aviation with zero emissions.

The hydrogen-electric aviation company H2FLY had announced that its cutting-edge HY4 aircraft, which is currently operated using pressurised gaseous hydrogen, will be modified to receive a new liquid hydrogen tank, which will double the HY4 aircraft's range capability, as key players in the global aviation and aerospace industries gathered for the Farnborough International Airshow (18-22 July).

The aircraft will start a rigorous programme of ground testing early in 2023 after the integration of the new tank and fuel cells, and it is anticipated that this will be the first commercial aeroplane in the world to fly utilising liquid hydrogen.

Yahoo Life UK

The team will handle liquid hydrogen on board for the first time after attaining this milestone, which will also improve the range. The development of the world's first entirely hydrogen-electric powertrain, integrating fuel cells and liquid hydrogen, is a key step towards H2FLY's objective of attaining real zero-emissions medium and long-haul flying.

H2FLY

An aircraft that uses liquid hydrogen has the potential to transform the way we travel between cities, regions and countries, delivering true zero-emissions flight on medium and long-haul flights. Liquid hydrogen has huge advantages over the alternative pressurised hydrogen gas, not least because it becomes possible to carry a far greater quantity on board an aircraft. The result is that significantly longer ranges are possible. At H2Fly we’ve always been focused on delivering and demonstrating new technology, rather than just talking about it. As we head into this exciting new phase for the company we’re looking forward to continuing that tradition and proving this important new technologyCommenting on the advantages of hydrogen-electric propulsion, Prof. Dr. Josef Kallo, co-founder and CEO of H2FLY said

Dr. Josef Kallo | Source

H2FLY has been investigating, experimenting, and perfecting for more than ten years, leading to the creation of the HY4, a four-seat aircraft with hydrogen-electric propulsion that made its debut in 2016. Over the previous two years, there have been several significant turning points, including:

In 2020, H2FLY received permission to operate the most recent HY4 model, which has a fully redundant powertrain architecture. The business successfully illustrated the use of hydrogen-electric propulsion systems in aviation during the course of more than 90 takeoffs.In order to fly a CS25 class aircraft fueled by H2FLY's hydrogen fuel cell technology, the business and aircraft manufacturer Deutsche Aircraft forged strategic cooperation in 2021. The 2025 target date for the climate-neutral regional aircraft calls for a 2,000 km range and 40 passenger seatsThe business performed the first cross-country flight using hydrogen power between two commercial airports earlier this year, travelling 77 miles from Stuttgart, Germany, to Friedrichshafen.Additionally this year, the business established what is thought to be a hydrogen aircraft global altitude record, flying at 7,230 feet, solidifying its status as a pioneer in this new category.

https://www.youtube.com/watch?v=ZtQvDUN2ukE&t=12s

H2FLY

The first certified, entirely hydrogen electric aircraft powertrain is what H2FLY GmbH, which was created by five engineers from the German Aerospace Center in Stuttgart and the University of Ulm, is aiming to bring to market. H2FLY will usher in an age of zero-emission, sustainable air transport by advancing hydrogen fuel cell technology. The business creates and tests hydrogen-electric propulsion systems for aircraft, and it is a world leader in doing so. The HY4, the first passenger hydrogen-electric aircraft in the world, had its maiden flight in 2016, proving the viability and potential of this technology for aviation in the future.

.With the assistance of German and European partnerships, H2FLY is now working to expedite the development and commercialization of its technology. It has a strong network of partners in business and science. 40 passengers are anticipated to be able to travel up to 2,000 kilometres in just a few years on the the hydrogen-electric aircraft (1,240 miles).

SOURCE(s)

COVER: electrive.com

Airports Authority of India (AAI) and Luftfartsverket (LFV), a Swedish air navigation service provider, have signed a memorandum of understanding (MoU) for building and operationalising the next generation of sustainable aviation technology by exploring smart aviation solutions.

Established in 1985, the Airports Authority of India is a statutory body functioning under the Ministry of Civil Aviation, Government of India. It is mainly responsible for creating, maintaining, upgrading, and managing civil aviation infrastructure in India.

https://twitter.com/AAI_Official/status/1562799962601455621

This pact will pave the way for the bilateral exchange of aviation expertise and technology between the two countries. It will also promote close and friendly relations between the two agencies and expand technical cooperation in airports.

This agreement will bring together two air navigation service providers, India and Sweden, with demonstrated capabilities in building and operationalizing the next generation of sustainable aviation technology, to explore smart aviation solutions.

AAI is mainly responsible for creating, maintaining, upgrading, and managing civil aviation infrastructure in India.

According to the MoU, AAI and LFV, both Government agencies of India & Sweden shall jointly collaborate on Air Traffic Management, Air Traffic Control, Remote Airport Management & Traffic Control, Airspace Design, Planning & Infrastructure, Digitalized Airport & Aviation and other fields.

The MoU was signed by M. Suresh, Member (Air Navigation Services), AAI and Magnus Corell, Deputy Director General, LFV Sweden.

“The mutual exchange in civil aviation between AAI and LFV Sweden will go a long way in building and operationalizing the next generation of smart and sustainable aviation technology.” Sanjeev Kumar, Chairman, Airports Authority of India (AAI)

State-owned Airports Authority of India and LFV Air Navigation Services of Sweden will collaborate on various areas, including air traffic control, airspace design and planning, and sustainable airports and aviation.

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