SpiceJet to send 80 Captains on LWP amid financial instability

The financial crisis at SpiceJet is hurting employees dearly. Spicejet is sending 80 Captains on LWP i.e. Leave without pay for 3 months starting September 21, a senior pilot who doesn’t wish to be named said.

The senior pilot further mentioned that 40 Captains of Boeing 737 and 40 Captains of Bombardier Q400 are sent on LWP.

The airline will call them back gradually as it deploys new aircraft into its fleet. SpiceJet plans to add seven new Boeing 737 Max starting from December.

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

SpiceJet faces several challenges. India’s aviation regulator has capped the number of seats the carrier can sell at 50% for eight weeks after it reported a string of mid-air malfunctions. The regulator has said the airline failed to build “safe, efficient and reliable” air services and in July summoned it to explain the incidents.

SpiceJet to send 80 Captains on LWP amid financial instability

SpiceJet is returning older 737 aircraft which it inducted from Jet Airways while lessors have repossessed around four aircraft. Around 10 of its Q400 aircraft are grounded due to a lack of spares.

ALSO READ - Struggling to-Survive SpiceJet allegedly not depositing PF in employee accounts

The struggling to-survive airlines, which have delayed August salaries, are allegedly defaulting on depositing tax deducted at source (TDS) with authorities and allegedly not depositing PF in employee accounts.

It is yet to give employees Form 16 for fiscal 2021-22 due to which they are facing issues in filing tax returns. It is also reportedly defaulting on some statutory payments too, claim sources.

Indian aviation is getting back on track. The traffic is matching the pre-covid levels and so the airlines have also started to reinstate salaries to pre-covid levels. The coronavirus pandemic had significantly impacted the airline industry, and the operators had resorted to cost-cutting measures, including salary reductions, to manage their financials.

Spicejet pilots are still on a 65% cut on pre-COVID salary.

All the major Indian carriers IndiGo, Air India, Vistara, AirAsia India and the newest airline Akasa Air has given a rise to their pilots in their salaries but Spicejet pilots are still on a 65% cut on pre-COVID salary.

ALSO READ - Air India to reinstate salary of all employees along with layover allowances to pre-covid levels

Air India told its employees on August 26 that it will restore their salaries to pre-Covid-19 levels from September. The airline is also set to restore crew layover allowances and meal arrangements for pilots and cabin crew at the same time.

Battered by the Covid-19 pandemic, Air India and other Indian carriers had cut the salaries of their employees and reduced the layover allowances and meal arrangements of their flight crew to save money.

ALSO READ – Air India begins restoring salaries to pre-pandemic levels gradually

In April, Air India restored salaries to almost 75% of the pre-pandemic level.

In April, Air India restored salaries to almost 75% of the pre-pandemic level. Then, it restored 20% of the flying allowances. At present, salaries are 35% below the levels before the Covid outbreak. Special pay for pilots and wide body allowances will be restored by 25%, after having been slashed by 40%.

ALSO READ – IndiGo reinstates pilots and crew salaries by 8% from August 1

Earlier in August, IndiGo partially reinstated the salaries of its pilots with the stabilisation and growth in its operations. The company announced an 8% increase in salaries of pilots with effect from April. In 2020, it cut the salaries of pilots by 28%.

ALSO READ – IndiGo partially restores pilot salaries by 8% from April 1

While, IndiGo had also vowed to restore another 6.5% from November 1, 2022, if operations continue to run smoothly, pilots and commanders say that the “so-called” cuts taken by the top management of the airline for the year due to the pandemic have been in effect negated by the generous allotment of stock options.

Akasa raised pilot pay by an average of 60% — captains will start at INR 4.5 lakh a month and first officers at INR 1.8 lakh — from October.

ALSO READ - Akasa Air leads in pay hikes for pilots; raises salaries by 60%

Akasa Air, India’s newest airline, is leading on pay hikes for pilots, marking a reversal of the pandemic-era aviation squeeze that saw salary cuts and job losses globally. This is likely to set off salary increases at other carriers to ensure they have enough pilots as air traffic recovers amid fleet expansion and Gulf carriers embarking on a hiring spree.

Akasa raised pilot pay by an average of 60% — captains will start at INR 4.5 lakh a month and first officers at INR 1.8 lakh — from October. This is against INR 2.79 lakh and INR 1.11 lakh, respectively, at present.

Akasa’s pay bundle is 8-10% larger than what market chief IndiGo shall be paying its captains from November, by when salaries on the firm shall be absolutely restored, having been lower by practically 28% in the course of the pandemic downturn.

Crisis at SpiceJet

The cash-strapped airline’s troubles have been mounting in the past few months. Meanwhile, SpiceJet employees alleged delay in the disbursal of salaries for the second straight month, with the budget airline saying the payments were being made in a “graded format”.

SpiceJet incurred net losses of INR 316 crore, INR 934 crore, and INR 998 crore in FY19, FY20, and FY21, respectively. 

“The salary disbursal was timely for June. Also, the salaries are yet to match the pre-COVID-19 levels. The salaries being disbursed to captains and first officers are not even 50% of what they used to be before the pandemic outbreak in March 2020,” a staff told news agency PTI.

SpiceJet on August 31 declared losses of INR 1,725 crore for the full year of FY 22. The airline also reported a loss of INR 783.60 crore for April-June of FY 23 as compared with a loss of INR 729 crore in the year-ago period.

SpiceJet incurred net losses of INR 316 crore, INR 934 crore, and INR 998 crore in FY19, FY20, and FY21, respectively. SpiceJet's Chief Financial Officer Sanjeev Taneja also resigned and Ashish Kumar was announced as the new CFO of the company.

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

SpiceJet on August 31 declared losses of INR 1,725 crore for the full year of FY 22.

SpiceJet is looking to raise INR 2,000 crore through various means, including a stake sale, its largest shareholder and chairman, Ajay Singh, said. “We are exploring and ready to look at all options… on the table. We will ensure SpiceJet remains financially vibrant,” said Singh.

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

The airline had earlier this month said it was “in discussions with various investors (including a Middle East carrier and an Indian conglomerate) to secure sustainable financing.”

SpiceJet’s financial health worsened after Covid decimated air travel globally. The airline has suffered three straight years of losses while its market share has plunged to fifth from second largest. In late 2021, the airline had cash and cash equivalents of just INR 72.9 crore compared with total debt of INR 9,750 crore. 

ALSO READ – Cash-strapped SpiceJet plans to take delivery of 7 Boeing 737 Max

The no-frills airline is expecting Boeing to resume delivery of the 737 Max aircraft in October. SpiceJet plans to take delivery of seven planes, which will also bring in income through their sale and leaseback.

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

ALSO READ - SpiceJet set to receive funds through ECGLS, an extension of up to 3 months for AGM’22

SpiceJet has also received an extension of up to three months for conducting its annual general meeting for the financial year that ended March 2022. Now, the Annual General Meeting (AGM) for the last financial year will be held on or before December 31, 2022.

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.

The X-59 QueSST supersonic aircraft from Lockheed Martin will undergo its initial test by the National Aeronautics and Space Administration (NASA) this year.

As cool as it sounds, supersonic travel is possible. Even while the NASA X-59 Quiet SuperSonic Technology, or QueSST, will not carry passengers, the experimental aircraft is moving the organisation closer to realising silent commercial supersonic travel over land.

From the vault

Lockheed Martin created the experimental aircraft known as the X-59 QueSST. In 2021, the aeroplane was handed over to NASA. At a height of 17 km, it should be able to travel at a speed of Mach 1.42 (1,510 km/h).

The X-59's distinctive design is the result of years of study into supersonic flight at NASA's Ames Research Center in California's Silicon Valley, including multiple projects under the Commercial Supersonic Technology project, or CST. These initiatives span a variety of supersonic research-related fields, utilising cutting-edge visualisation tools to analyse shockwaves, as well as specialised wind tunnels, supercomputing resources, and systems engineering know-how.

NASA

The closest thing to actual X-59 flight data is a computer simulation, which can enhance the level in estimates of the aircraft's supersonic performance. Additionally, computational fluid dynamics models are used to visualise the X-59 aircraft concept and assist researchers in figuring out which aspects of the aircraft produce shockwaves that are responsible for the sonic boom sound that can be heard below the aircraft.

Don Durston, an aerospace engineer with a model supersonic aircraft, ready for testing in the 9- by 7-foot Unitary Plan Wind Tunnel at NASA’s Ames Research Center in California's Silicon Valley | NASA/Dominic Hart

QueSST's unique design for reducing the sound shock wave is noteworthy. The sound shock was lowered to 79 dB by NASA scientists. This figure may drop by many points in the future, probably to 75 dB.

Testing the X-59 in a wind tunnel with scaled-down models of the real thing is one approach to ensure that it will function as intended. Engineers can measure the pressure waves produced when supersonic air passes over expertly constructed tiny models to confirm that the plane operates as predicted.

Although we have advanced technology, measuring supersonic airflow over an aeroplane model in a wind tunnel is still a tricky task even in the twenty-first century. Because the airflows in the tunnels are not perfect, even performing the same test with the same model can result in somewhat different results on different days. You will obtain slightly different results if you place the model in a different wind tunnel.

The recent low-speed wind tunnel tests were a success. The results of the tests matched NASA and Lockheed Martin’s earlier computer predictions. There were no surprises that arosesaid Jeff Flamm, NASA's aerodynamics and performance lead on Quesst

Representative | NASA

When an aircraft flies faster than the speed of sound, this is known as supersonic flight. The resulting shockwave can produce a loud sonic boom, startling people on the ground. To solve this issue, the X-59 is designed to produce a thump.

Sonic Boom | Representative | 9GaG

The X-59 is essential to NASA's Quesst programme, which aims to increase the use of supersonic flight and provide data to regulators so they can reform the current national and international aviation regulations that prohibit commercial supersonic flying over land.

Although the plane's design is vital, Quesst also contains other essential mission elements. NASA intends to fly the X-59 over several U.S. localities and poll residents on whether they find the sound tolerable to give authorities information for modifying aviation regulations that forbid commercial supersonic flight over land. The organisation will communicate this information to international and domestic regulators.

ALSO READ - The NASA X-59 QueSST supersonic aircraft inches closer to reality after passing 2 key tests

SOURCE: NASA

COVER: SciTechDaily

Jet Airways, whose potential new house owners, the Jalan-Kalrock consortium, have been attempting to relaunch operations this month, is dealing with extra delays.

The most recent bottleneck stems from unresolved negotiations between its administration and engine makers on extra beneficial phrases in its proposed leasing contracts, folks within the know mentioned.

In the meantime, one other problem dragging down its take-off plan is unresolved talks between the consortium and Jet Airways’ former lenders, who’re searching for settlement of their dues earlier than the airline buys or leases planes.

Jet Airways relaunch delayed due to unresolved negotiations between the administration & engine makers

ALSO READ - The planned relaunch of Jet Airways is further delayed till October

Jet Airways' new Chief Executive Officer, Sanjiv Kapoor, confirmed ongoing talks with engine makers for the “absolute best” phrases.

Jet Airways desires engine makers Pratt & Whitney (P&W) or CFM to bear a bigger share of the prices each time an engine is changed, folks aware of the event mentioned. New engines like P&W’s GTF and CFM’s Leap are changed extra steadily than their predecessors, particularly in environmentally harsh situations akin to in India.

“Beginning or restarting an airline is a fancy enterprise and we need to ensure we take the time to get the very best phrases and contracts for each plane and engines, together with upkeep contracts, in addition to to obtain plane configured the best way we wish them, to fulfill our strategic necessities and to safe our future. If that takes slightly extra time to get proper, that’s high-quality. Because the saying goes, ‘act in haste, repent at leisure’.The airline’s administration is near finalising its preliminary fleet plan to restart operations within the coming weeks. We’re working to open on the market as quickly as attainable, and to begin operations within the weeks that observe. Once more, it is a marathon, not a dash. We are going to begin operations in a deliberate and phased method and can share particulars of our fleet, buyer worth proposition and enterprise mannequin once we open on the market.”Sanjiv Kapoor, CEO, Jet Airways

“Negotiations have been on for weeks,” mentioned a government at an engine maker. “Jet does need its pound of flesh.” The contractual phrases within the leasing contract, sources mentioned, may also affect these within the final buy contract for engines. Jet has but to announce any plane or engine buy.

"Engine contracts are usually onerous. The airline can find yourself spending extra on engines than airframes,” an individual conscious of the matter mentioned.

Jet Airways desires engine makers Pratt & Whitney (P&W) or CFM to bear a bigger share of the prices each time an engine is changed

The airline is, nevertheless, near finalising a leasing contract for Airbus A320 planes, certainly, one of which was earlier leased by Siberia Airways, the individual added. In the meantime, the consortium of lenders that dragged Jet Airways to the chapter court docket mentioned the brand new house owners want its approval to lease or buy planes.

Jet Airways went out of business in 2019. The case earlier than the Nationwide Firm Regulation Tribunal (NCLT) went on for 2 years earlier than a debt decision plan by the Jalan-Kalrock consortium was authorised.

The SBI-led lenders’ consortium mentioned it could present no-objection certificates solely after the brand new house owners decide on a timeline for implementing the debt decision plan, which entails a staggering payout.

The airline is near finalising a leasing contract for Airbus A320 planes, certainly, one of which was earlier leased by Siberia Airways

Till the timeline or efficient date of the decision plan is offered, Jet Airways' possession can’t be transferred to the Jalan-Kalrock consortium. This successfully means the consortium can not turn into the house owners nor determine to purchase or lease planes without the lenders’ go-ahead.

Jalan-Kalrock and Jet Airways’ new administration beforehand denied this. They mentioned the NCLT proceedings and debt decision plan haven’t any bearing on Jet’s new enterprise and growth plans.

The consortium consists of Murari Lal Jalan, an NRI based mostly within the UAE who will maintain shares of Jet in his private capability, and Florian Fritsch, who would maintain shares via his funding holding firm, Kalrock Capital Companions Ltd, Cayman.

Jet Airways, led by the brand new administration, averted liquidation proceedings by agreeing to switch to banks about INR 130 crore obtained from the lease-rentals of these planes.

ALSO READ - Lenders of Jet Airways threaten bankruptcy over aircraft rental revenues

Jalan’s enterprise pursuits are unfolded throughout the UAE, Brazil, India, Uzbekistan and the Philippines, in response to the decision plan. On July 22, it was reported that the lenders had threatened to liquidate the airline if the successful bidder didn’t conform to distribute leases obtained from a few planes leased out by Jet Airways.

ALSO READ - Jet Airways’ lenders to get rental earnings from Jalan-Kalrock Consortium

On August 30, it was reported that Jet Airways, led by the brand new administration, averted liquidation proceedings by agreeing to switch to banks about INR 130 crore obtained from the lease-rentals of these planes.

(With Inputs from The Economic Times)

In-flight Wi-Fi has been a much-requested service from flight passengers to remain connected to the internet, even at high altitudes.

Elon Musk’s SpaceX has started making a few deals with airline companies to offer Starlink’s satellite-based internet service to flyers. The company recently secured deals with Hawaiian Airlines and charter airline JSX to bring Starlink Wi-Fi services on their flights.

While there are in-flight Wi-Fi services for passengers in some airlines, considering they pay a few extra bucks, the internet speeds are nowhere near those of a good home Wi-Fi setup.

And well, SpaceX’s Starlink aims to change that soon enough.

Starlink to Offer Improved In-Flight Wi-Fi Service Soon.

SpaceX wants to show the world its Starlink satellite system can deliver Netflix and YouTube at 30,000 feet. So it recently held a demo for the media aboard a jet operated by its first airline customer, regional carrier JSX.

Starlink, a part of Musk’s Area Exploration Applied sciences Corp., delivers broadband from a constellation of low-flying small satellites.

According to the company’s most recent filings, Starlink has deployed over 3,000 satellites and now has over 400,000 members. However, Musk’s invention has a drawback in that tiny satellites have less capacity and may find it difficult to support the demands of large airplanes in congested skies.

Now watch Netflix at 30,000 ft as Elon Musk enters the in-flight wi-fi market with small satellites

The company has been struggling to expand its satellite-based internet services. However, if the Elon Musk-backed company can successfully deliver in-flight Wi-Fi before its competitors, it could have an upper hand over other companies and capitalize on the potential billion-dollar market.

Starlink says it can serve aircraft of all sizes and cites an agreement with the parent of Hawaiian Airlines to serve large Airbus and Boeing planes. As for the subsidy rejection, the company said it was unfairly rejected by officials who judged the current data speeds rather than the faster service envisioned when the celestial network is built out.

Airlines in coming years may upgrade over 1,000 aircraft in regional fleets from slow legacy internet systems, and Starlink is “a leading contender” to win such contracts, DiPalma said.

JSX selects Starlink for in-flight WiFi.

ALSO READ - Intelsat & Nelco collaborate to provide inflight connectivity in Indian skies

Intelsat says it remains the largest provider of in-flight service, with about 2,000 aircraft linked by its satellites and about 1,000 aircraft connected by air-to-ground systems that communicate with earthbound gear. Viasat says its in-flight system serves about 1,930 aircraft, with agreements to outfit another 1,210 planes.

About 10,000 commercial aircraft already have in-flight wireless, a number projected to exceed 36,000 by 2031, according to NSR, a satellite and space industry researcher owned by Analysys Mason. Annual revenue in the market is expected to reach more than $7.3 billion by 2031, from $1.9 billion in 2021, NSR said in an email.

India’s state-of-the-art Airline Akasa Air could fill 53% of its seats in August 2022. The airline started flying on 7th August with flights between Mumbai and Ahmedabad. The airline currently has four Boeing 737 Max aircraft with 189 seats.

In August 2022, the Domestic Air Traffic grew slightly by 3% to one crore passengers in contradiction to 97 lakh domestic passengers who boarded planes in July 2022.

ALSO READ - Akasa Air operates its maiden flight from Chennai

In the last week, it added Chennai as the fifth destination to its network besides Ahmedabad, Mumbai, Bengaluru, and Kochi. Sooner, it will also add Delhi to its network from next October. IndiGo, India’s largest airline, holds the largest number of passengers having a market share of 58%.

Akasa Air had a 53% occupancy rate in its first month of operations

ALSO READ - Akasa Air set to launch flights from the national capital

The DGCA data showed that Akasa Air carried 24,000 passengers on its flights in August, which gave it a 0.2 per cent market share. IndiGo is the market leader as it flew 5.83 million passengers domestically, recording a market share of 57.7 per cent.

ALSO READ - Akasa Air leads in pay hikes for pilots; raises salaries by 60%

As of August 2022, the Tata Group airlines, including Air India, Vistara, and AirAsia India, hold a 24% market share. Airlines flew with an average seat occupancy of 75 % despite August being a monsoon-heavy month impacting travel.

SpiceJet and Vistara hold the highest occupancy of around 84% of seats. Experts assume that Akasa’s load factor will increase as the airline gets surplus time to build forward load with more bookings.

The airline currently has four Boeing 737 Max aircraft with a configuration of 189 seats.

The occupancy of seats will also improve as the airline flies more on metro routes. Kapil Kaul, the CEO of South Asia of Aviation Consultancy Firm (CAPA), explained that the load factor for the industry would soon improve as the removal of cap impact on airfare will be visible.

ALSO READ - DGCA to end the airfare caps on domestic flights

From 31st August, the Government has removed the cap on airfares, and airlines have become free to charge, according to the current market rate. The Competition has reduced airfares on some routes by dropping around 20% to 25% as airlines have started selling discounted seats for specific flights, even for close-in travel.

ALSO READ - Removal of airfare caps ignites a price war among the airlines to attract fliers

Cover Image - Aerowanderer

At a time when India and China are locked in a protracted border dispute, the Indian Air Force has for the first time assigned two women combat pilots to its frontline Chinook helicopter units that are crucially supporting the army's deployments close to the Line of Actual Control (LAC), including transporting light howitzers, in the northern and eastern sectors, officials familiar with the development said on Friday.

Before being transferred to CH-47F Chinook units headquartered in Chandigarh and Mohanbari in Assam, respectively, Squadron Leaders Parul Bhardwaj and Swati Rathore were flying the Russian-made Mi-17V5 helicopters, according to one of the officers quoted above who requested anonymity.

According to a second official, piloting a Chinook is completely different from piloting a Mi-17 or any other helicopter in the IAF arsenal.

IAF Mi-17 | Representative | Hindustan Times

It’s the only tandem rotor aircraft that the air force operates and can carry out a variety of roles. The chopper has a completely unique feel, its controls are different, and flying it provides excellent exposure to helicopter pilots, men or women, operating on the front linehe said

Both Bhardwaj and Rathore had completed accomplishments on the Mi-17V5 transport helicopters they had previously flown, according to a third officer, before beginning their new postings with the "Featherweights" Chinook unit in Chandigarh and the "Mighty Talons" in Mohanbari.

Bhardwaj led the first all-female Mi-17V5 flight in 2019, while Rathore, flying a Mi-17V5 in a four-helicopter formation, made history as the first woman helicopter pilot to participate in the 2021 Republic Day flypast over Rajpath (now Kartavya Path).

As part of a broad infrastructure drive to improve military capabilities in the sensitive sector, helipads with the ability to fly Chinooks are being built in remote areas of Arunachal Pradesh for faster deployment of personnel and weapons.

M777 ultra-light howitzer | India Today

The M777 ultra-light howitzer, which was bought from the US to fight the Chinese military build-up, has emerged as the centrepiece of the army's weapon deployment along the LAC, the officials said. The gun's tactical mobility gives the army numerous possibilities for a firepower boost in isolated places.

One of the most crucial missions being carried out by the two Chinook units is transporting the M777 ultra-light howitzers as an under-slung load to forwarding sites close to LAC, according to army officers with knowledge of the situation.

Representative | News18

In November 2016, India paid US $750 million for 145 howitzers. 25 howitzers from the M777 maker BAE Systems were shipped fully assembled, and the remaining guns were manufactured locally in cooperation with Mahindra Defense as part of the Modi administration's Make in India project.

Bhardwaj and Rathore have been assigned to Chinook units at a time when more doors have opened for women in the armed forces: the army has allowed them to fly helicopters, the navy is allowing them to serve on warships with their male counterparts, and they will soon begin inducting them into the personnel below officer rank (PBOR) cadre. They are also now qualified for permanent commission in all three services. Additionally, this year saw the first-ever enrollment of female candidates at the National Defense Academy. When the IAF chose to induct women into the fighter stream in 2015, it marked one of the turning points for women in the military.

When the Chinook was required to fly from Chandigarh to Jorhat as part of an operational training job, it broke the record for the longest non-stop chopper sortie in India in April. In seven and a half hours, it covered 1,910 kilometres.

The newest helicopter in the fleet of the air force is the multi-mission Chinook, which was purchased from the US and costs about 650 crores each. 15 Chinook heavy-lift helicopters were introduced into India's fleet in 2019–20.

SOURCE(s)

COVER: India Today