SpiceJet settles financial dispute with Credit Suisse AG

Low-cost carrier SpiceJet on Wednesday, May 25 said that it has signed and concluded the settlement and consent terms with Credit Suisse in a pending dispute with the latter.

The settlement and consent terms, executed on May 23, have also been filed before the Supreme Court for final orders, the airline said in a statement.

The airline said it had already provided a bank guarantee of USD 5 million under the direction of the Madras High Court in the matter and there is no adverse financial liability on the company.

SpiceJet settles financial dispute with Credit Suisse AG

The settlement involves payment of a certain amount up front and the balance amount over a mutually agreed timeline, SpiceJet said without giving specific details.

The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances therein with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides an impetus to normalisation, growth and expansion of the airline.

ALSO READ - SpiceJet and De Havilland reach an agreement over Q400 aircraft

On March 31, SpiceJet informed the Supreme Court of having settled the payment dispute with Credit Suisse. The disclosure had come during a court hearing on another case involving the airline.

The settlement involves payment of a certain amount upfront and the balance amount over a mutually agreed timeline

In a statement that was issued shortly thereafter, SpiceJet had said that the "parties have now reached an in-principle commercial settlement of the dispute and the process of documentation is underway."

ALSO READ - SC to SpiceJet – “We wonder if you want to run an airline”, gives three weeks to resolve the dispute

It was this payment dispute with Credit Suisse that led to the Madras High Court ordering the winding-up of SpiceJet. The airline had approached the Supreme Court in appeal and secured a respite from the top court by way of a stay order in January this year.

The court had granted time to the airline to proceed with its negotiations in an attempt to settle the dispute.

SpiceJet is the country’s largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. 

The dispute pertained to the non-payment of dues by SpiceJet to Switzerland-based SR Technics, which undertakes maintenance, repair and overhauling of Air Craft for airlines. SpiceJet had defaulted on payment of dues to the tune of USD 20 million.

Credit Suisse moved against SpiceJet and pressed a winding-up plea against the airline before the Madras High Court which allowed the same. The winding-up order was upheld by a high court bench of higher strength and an appeal against this ultimately came before the Supreme Court.

SpiceJet operates a fleet of Boeing 737s, Q400s & freighters and is the country’s largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. 

Jet Airways has appointed four new senior executives days after aviation regulator DGCA granted a revalidated Air Operator Certificate, allowing the airline to resume commercial flight operations. The AOC was granted to the airline on May 20.

The fresh AOC received by Jet Airways has a one-year validity, according to a copy of the certificate. Jet Airways’ previous AOC under the ownership of Goyal was issued on 13 February 1995 and expired after the airline was grounded in 2019.

4 new senior executives appointed by Jet Airways

The airline on Monday, May 23 said that it has appointed Prabh Sharan Singh as its chief digital officer, H R Jagannath as vice president of engineering, Mark Turner as vice president of inflight product and services and Vishesh Khanna as vice president of sales, distribution and customer engagement.

The airline said Singh will take charge on June 1, Jagannath has taken charge on Monday, May 23, Turner will take charge on June 15 and Khanna will join the airline sometime in July.

Singh's rich experience spanning nearly 20 years includes stints at Etihad Airways, where he worked as a strategy and portfolio lead within the carrier's digital technology and innovation division, and at Kingfisher Airlines, where he worked as general manager - commercial alliances, the airline mentioned.

The fresh AOC received by Jet Airways has a one-year validity

Jagannath has over 40 years of aviation experience and he most recently served as chief executive officer of Air India Engineering Services, it noted.

Turner -- who also has more than 40 years of aviation experience -- led Jet Airways' inflight services team between 2008 and 2011 and has held senior management positions at Gulf Air, Emirates, Qatar Airways and Fiji Airways, it said.

Khanna joins the airline from VFS Global Ltd, where he currently serves as Business Head e-Visa, it mentioned. He has nearly 30 years of experience in the aviation and travel sectors across B2C (business-to-customer) and B2B (business-to-business) sales, having held executive positions at various airlines in the past.

ALSO READ - Vipula Gunatilleka, former CEO of Sri Lankan Airlines, appointed as Jet Airways’ CFO

The airline has also appointed the Heads of other key departments, details of which will be revealed in due course.

Earlier this year, the Jalan Kalrock Consortium appointed Sanjiv Kapoor as CEO, Vipula Gunatilleka as CFO, and Capt. PP Singh as Vice President- Flight Operations and Accountable Manager, Alphonso Dass as Vice President – Airports & Airport Training, Nakul Tuteja as Vice President – Human Resources & Administration, and Ronit Baugh as General Manager & Head of PR and Corporate Communications.

ALSO READ -Sanjiv Kapoor named as the CEO of Jet Airways

The airline has also appointed the Heads of other key departments, details of which will be revealed in due course.

Founded by entrepreneur Naresh Goyal, the airline ran for about 25 years before it shuttered operations in April 2019 amid a massive cash crunch. The carrier is now owned by a consortium of UAE-based businessman Murarilal Jalan and British investor Kalrock Capital.

Jet Airways flew to over 65 destinations in India and across the world with 124 narrow-body and wide-body aircraft.

Launched in 1993, Jet Airways grew to become synonymous with premium air travel for discerning travellers in India. Before it suspended operations in April 2019, Jet Airways flew to over 65 destinations in India and across the world with 124 narrow-body and wide-body aircraft.

Financial distress forced Jet Airways, which flew for more than two decades, to suspend operations on April 17, 2019, and a consortium of lenders, led by State Bank of India filed an insolvency petition in June 2019 to recover outstanding dues worth over INR 8,000 crore.

In October 2020, the airline's Committee of Creditors (CoC) approved the resolution plan submitted by the consortium of the UK's Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan. In June 2021, the resolution plan was approved by the National Company Law Tribunal (NCLT).

A whale-shaped Airbus Beluga plane that raises eyebrows and brings smiles to the faces of people wherever it goes became the talk of the town as it touched down at Kolkata airport on Saturday, May 21 evening.

Carrying two helicopters in its massive cabin that is nearly four times the size of a normal wide-body aircraft, the Beluga took off late on Sunday, May 22 to fly to Pattaya in Thailand. This was the second time the aircraft had visited Kolkata, the last being 23 years ago in 1999.

The Airbus A300 B4-608 ST super transporter or Beluga is a version of the standard A3000-600 wide-body airliner modified to carry aircraft parts and oversized cargo. It landed in Kolkata around 9 PM on Saturday, May 21 and was guided to parking bay No. 16 for a 24-hour crew halt.

Carrying two helicopters in its massive cabin that is nearly four times the size of a normal wide-body aircraft, the plane took off late on Sunday to fly to Pattaya in Thailand.

The Beluga had taken off from the Airbus headquarters in Toulouse, France, on May 18 and stopped at Marseilles, Athens, Cairo, Abu Dhabi and Ahmedabad before reaching Kolkata. The aircraft’s next stop is Pattaya, Thailand.

“Since last night, the plane has become the star attraction at the airport with airline ground staff and airport operational staff taking vantage points to click selfies with the aircraft in the backdrop. You can’t help smiling when looking at the cute whale/dolphin-faced plane. Given its size, you cannot miss it if you are in the operational area,” said an airport official.

The Beluga is nearly six-storey high and its wingspan is almost 45m. Its internal cargo hold is 124ft long, 23ft wide and 23ft high.

https://twitter.com/ahmairport/status/1528019581155291136

The Beluga that created the sensation in Kolkata has been in service since March 1996 and has done 3,109 flights with accumulated 4,816 flying hours. Kolkata airport officials said this was its second halt at Kolkata airport. There are four other such planes in service and a BelugaXL that is bigger.

A Beluga had touched down at Kolkata in 1999 with the giant painting Liberty Leading the People by Eugene Delacroix, which had hung in the Louvre in Paris since 1874. That year, it was flown to Tokyo via Bahrain and Kolkata.

The painting measuring 3 m × 3.6 m was too large to fit into a Boeing B747. It was transported in the vertical position inside a special pressurized container provided with isothermal protection and an anti-vibration device.

https://twitter.com/aaikolairport/status/1528266067532869632

“Is it a whale? Is it a plane? It's the #Beluga! Yes we are mesmerised by this beast, are you?”, the Kolkata airport’s Twitter handles posted its excitement on Sunday, May 22 afternoon. The excitement was reciprocated among fliers as well.

Soumen Mukherjee, a passenger, posted a photograph of the aircraft and tweeted: “Airbus Beluga spotted in Kolkata, probably a refuelling stop, nevertheless a very rare visitor.”

A fine of INR 10 lakh per day will be levied on the developer of the upcoming Noida Airport if there is a delay in the completion of the project, Minister Nand Gopal Gupta 'Nandi' said on Friday, May 20.

The Greenfield airport is coming up in the Jewar area of Gautam Buddh Nagar district in western Uttar Pradesh, some 70 km away from Delhi, and is being developed by Switzerland-based concessionaire Zurich International Airport AG's special purpose vehicle Yamuna International Airport Private Limited (YIAPL).

UP minister warns of a fine of INR 10 lakh per day if the Noida Airport project is delayed

The state industrial development minister issued the directives to senior officials of the Yamuna Expressway Industrial Development Authority (YEIDA) and the Noida International Airport Limited (NIAL), among other government agencies involved in the project, according to an official statement.

“If the international airport is not ready on time, then a penalty will be imposed at the rate of INR 10 lakh per day,” the minister told the officials, according to the statement issued by his office.

Gupta was on a two-day visit to Noida and Greater Noida where he reviewed the workings of the local authorities as well as the YEIDA, which manages the development of the region along the 165-km-long Yamuna Expressway in western Uttar Pradesh.

The airport is billed to be India's largest airport upon full completion. It will be spread over an area of 5,000 hectares.

During the meeting with YEIDA and NIAL officials on Friday, May 20 the minister was informed that all no-objection certificates (NOCs) have been received for the airport, which will have the Sarus Crane bird as its symbol.

ALSO READ - Jewar Airport has the potential to make Noida what Delhi Airport made Gurgaon

Gupta, who was earlier the minister of state's civil aviation, was also informed that the airport would be built in four phases and that a sum of INR 4,200 crore is being spent during the first phase of the project as against an earlier estimated cost of around INR 5,600 crore.

ALSO READ - Metro routes proposed between Noida Airport and Delhi’s IGI Airport by DMRC

PM Modi laid the foundation of the airport in November 2021

He was informed that in future, a metro train will also be run on the YEIDA's metro corridor, according to the statement.

According to officials involved in the project, the first phase of the Noida International Airport is scheduled to be completed by September 2024 with one runway and a capacity of handling 1.20 crore passengers annually by then.

The airport is billed to be India's largest airport upon full completion. It will be spread over an area of 5,000 hectares. The first phase will be spread over 1,300 hectares, according to officials.

SpiceJet will induct more Boeing 737 Max aircraft over the next few months and it hopes to start broadband internet service on its planes soon, its Chairman and Managing Director (CMD) Ajay Singh said on Monday, May 23.

The airline has a fleet of 91 aircraft, out of which 13 are Max planes and 46 are older versions of Boeing 737 aircraft, according to its website.

"The Boeing 737 Max the flagship of our fleet has successfully returned to service and earned rave reviews from passengers. Over the next few months we will induct many more Max aircraft in our fleet with the goal to replace all our older aircraft with the Max.SpiceJet has been specially recognised for the stellar role you have all played in serving your country through the Covid crisis. We transported more than 1,00,000 oxygen concentrators to India when they were the most required. We were the first and the largest transporters of Covid vaccines in the country."Ajay Singh, Chairman and Managing Director (CMD), SpiceJet

In his email to employees on the 17th anniversary of the airline, Singh said the carrier continues to fly with the highest loads month after month and expects to soar even higher in the coming months.

SpiceXpress, the airline’s successful cargo company, will add a substantial number of freighter aircraft further strengthening and consolidating its leadership position in the industry, he mentioned.

Hope to start broadband internet service on SpiceJet aircraft soon: CMD Ajay Singh

"We will continue to add new products and new routes to our network this year. SpiceClub, our wonderful loyalty program launched our co-branded credit card recently and we hope to start a broadband internet service onboard our aircraft soon," he said.

SpiceJet’s route network will also expand to include unique and exciting new destinations in India and around the world, its CMD noted.

Yamuna International Airport Private Limited (YIAPL) has raised an INR 3,725 crore loan from the State Bank of India for funding the upcoming Noida International Airport.

This financial closure, which will enable the start of construction work, is one of the largest financings for an Indian Greenfield airport. The loan is to be repaid over a period of 20 years with one-year moratorium post completion of the project.

Picture credit: Zee News

Noida Airport project is being funded on a debt-equity ratio of 65:35. Zurich Airport International AG (ZAIA), a fully owned subsidiary of Flughafen Zurich AG, is the main shareholder of YIAPL and is injecting INR 2,005 crores as equity into developing the airport.

“We are delighted to have signed the financing agreements with SBI and NIA Ltd (NIAL) to develop Noida International Airport. This marks the financial close for the project, and we now eagerly look forward to the development of the airport in close collaboration with our partners, including NIAL and SBI.” YIAPL CEO Christoph Schnellmann

NIAL said it plans to make air travel more affordable for airlines and passengers by building the infrastructure sustainably and cost-effectively using renewable energy. Noida is envisaged to be India’s first net-zero emission airport. It will be a fully digital airport, enabling contactless travel.

“This will enable the team to focus on construction work for the airport development. We are eagerly waiting to build India’s leading airport that will boast of quality, efficiency, technology, and sustainability. We are excited and set to move ahead with a vision to co-create world-class aviation infrastructure”. NIAL CEO Arun Vir Singh

The Noida International Airport will be the National Capital Region’s third, after the Indira Gandhi International Airport (IGIA) and Ghaziabad’s Hindon. The new airport will be 100 km from the GMR Group-operated Delhi airport, the capital’s only international airport so far.

PROPOSED LOOK OF THE NOIDA INTERNATIONAL AIRPORT

The second phase of The Noida International Airport (previously Jewar airport) is due to be completed by FY31 and will increase its capacity to 30 million passengers per year, while the third and fourth phases are due to be finished by FY36 and FY40, respectively, further enhancing its capacity to 50 million and 70 million passengers, respectively.