SpiceJet's appeal in winding-up case rejected by Madras HC

SpiceJet's appeal against the judgment issued by the Single-judge bench in December 2021 stands rejected by the Madras High Court. After failing to pay USD 24 million in dues to a Swiss aircraft maintenance business, Justice R. Subramanian ordered the airline's dissolution.

A division bench comprising judges Sathi Kumar Sukumara Kurup and Paresh Upadhyay, however, extended a stay order on the judgment till January 28, allowing SpiceJet to approach the Supreme Court.

MRO (Maintenance, Repair, and Operations) provider SR Technics is seeking USD 24 million in unpaid fees relating to engine maintenance on the airline’s Boeing 737 fleet. SpiceJet maintains that SR Technics did not have the authorization of the civil aviation authority in India to conduct maintenance.

The Winding-up Appeal Case

The case revolves around the aircraft maintenance agreement between SpiceJet and Switzerland-based SR Technics signed in 2011. In total, SR Technics raised seven invoices in 2013. SpiceJet wanted to defer the payment. At this point, Credit Suisse, Switzerland, came to its rescue.

SpiceJet provided a certificate of acceptance of the invoices raised by SR Technics, signed bills of exchange, endorsed by the airline's banker. Basis these, Credit Suisse paid SR Technics on SpiceJet's behalf. And SR Technics assigned all its present and future rights to receive payments under the agreement to Credit Suisse.

The non-payment of dues worth USD 24 million, claimed by Credit Suisse, prompted it to move to court with a winding-up plea. In response, SpiceJet argued that the alleged debt owed to SR Technics wasn't legally enforceable, and there can't be a winding-up order under the Companies Act, 1956.

According to the petitioner, SpiceJet had reached an agreement with SR Technics for MRO services for 10 years in November 2011. SpiceJet lawyers argued that the MRO firm didn’t have valid authorizations from the Indian civil aviation regulator, the Directorate General of Civil Aviation (DGCA), between 2009 and early 2015. 

Spokesperson of SpiceJet was quoted by Mint, the Madras high court has agreed to extend the application of stay order till January 28, 2022. The company is examining the order and will take appropriate remedial steps as per the legal advice received.

The Ajay Singh-led airline also faces a lawsuit at the Delhi High Court from aircraft lessor Goshawk and its trustee Wilmington Trust SP Services Dublin Ltd. regarding unpaid dues. The Court is set to hear the case again in February.

This development comes when Indian airlines have been reeling from the Covid-19 pandemic, which has eroded air passenger traffic and impacted revenues. Indian airlines are expected to report a combined net loss of INR 25,000-26,000 crore in FY22 and would require additional funding of INR 45,000-47,000 crore between FY22 and FY24 to sustain operations, according to data from credit rating agency ICRA.

Know About the Parties Involved

SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana. It is the second-largest airline in the country by the number of domestic passengers carried, with a market share of 13.6% as of March 2019. The airline operates 630 daily flights to 64 destinations, including 54 Indian and 15 international destinations from its hubs at Delhi and Hyderabad.

Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centres around the world and is one of the nine global "Bulge Bracket" banks providing services in investment banking, private banking, asset management, and shared services.

SR Technics is a world-leading MRO service provider for aircraft, engines, and components along with engineering services and training. Whether you are an airline, aircraft leasing company, OEM, or component trading company, our solutions are tailored to fit your needs.

Flight and cabin crew who exhibit moderate to severe symptoms of Covid-19 will have to undergo special medical examinations and obtain a certificate that they have clinically recovered before they can rejoin work, the country’s civil aviation regulator DGCA said in fresh guidelines.

The special medical exam will be held at one of the Indian Air Force boarding centres after complete clinical recovery, the Directorate General of Civil Aviation (DGCA) said in a circular posted on its website on Monday, January 10.

DGCA releases guidelines for covid positive aircrews. (Image Courtesy - Hindustan Times)

“Such pilots can be considered for unrestricted flying provided their clinical examination and laboratory investigations reveal no finding that can cause a functional deficit,” the circular said. “Once declared ‘fit for flying’ at the IAF Boarding Centre, the aircrew can commence flying only after DGCA Medical Assessment is issued.”

If the isolation of a crew member was more than 14 days, he or she will be examined by a DGCA-certified class 1 medical examiner, who will have to issue a cure certificate, the regulator said. “The aircrew can commence flying only after DGCA medical assessment is issued.”

Aircrew members who experience mild symptoms can remain in home quarantine for seven days after onset of symptoms and no fever for three days. “There is no need for testing after the home isolation period is over” in such cases, the circular said.

A special medical exam will be held at one of the Indian Air Force boarding centres after complete clinical recovery

Asymptomatic aircrew will undergo home isolation, and on completion of seven isolated days, the aircrew can be declared fit for unrestricted flying by his or her company doctor, provided their clinical parameters are normal.

“The cure certificate issued by the company doctor or concerned specialist will have to be sent to DGCA medical cell for inclusion in the crew’s previous medical record,” the circular stated. DGCA said these guidelines will be effective from 15 January 2022 for three months or unless revoked/ suspended by them.

Click here for the DGCA circular dated 6th January 2022.

An Air Arabia Airbus A320 Aircraft, registration A6-ANV, operating scheduled passenger flight ABY111, departed the gate at Sharjah International Airport (OMSJ), the United Arab Emirates, to Salalah International Airport (OOSA), Sultanate of Oman. The flight had 48 persons on board, consisting of two flight crewmembers, four-cabin crewmembers, and 42 passengers. After obtaining air traffic control clearance for take-off, the aircraft took off from runway 12 instead of runway 30. The incident happened on 18th September 2018 and the investigation report was published on 10th January 2022.

The Co-pilot, under training, was the pilot flying (PF) and occupied the right cockpit seat. The Commander on the flight was a training captain and occupied the left seat. As part of the Co-pilot’s training, the Commander had briefed that a rolling take-off would be conducted. The responsibility for engine start was the Commanders. The Co-pilot taxied the Aircraft whereas the Commander was on the radio communications.

Incident simulated in pictorial format (includes timestamps)

Tower air traffic control gave clearance for an intersection takeoff from taxiway Bravo 14 for runway 30, which required a left turn for the correct runway. Thereafter, the before takeoff checklist ‘below the line' items were completed by the flight crew. Instead of steering the Aircraft left following runway 30 lead-on lines from Bravo 14 intersection, the Copilot steered the Aircraft right for runway 12.

The Co-pilot called out that RWY was not showing on the flight mode annunciation (FMA) after the thrust levers were moved to the FLX/MCT detent. As the Aircraft accelerated through 57 knots, the Commander realized that the Aircraft was on the wrong runway and immediately took over control. His decision to continue the take-off was based on his perception that there was an insufficient available runway for rejecting the take-off. The Commander advanced the thrust levers to the TOGA detent and nine seconds after, changed the Aircraft flap setting from 1+F to flap 2 position. The Aircraft lifted off 20 to 40 meters beyond the end of runway 12. No. 3 main wheel tire received cuts when it struck one approach light during the lift-off.

Sharjah Aerodrome chart (Representative- not to be used for navigation)

The tower controller did not detect that the Aircraft had turned onto runway 12 and only noticed when the Aircraft was about eight seconds before lift-off. The Commander handed over controls to the Co-pilot and the flight continueduneventfully to the planned destination.

Observations made by the regulator

In its findings, the Air Accident Investigation Sector of United Arab Emirates (AAIS) determined that entry to the wrong runway was due to degraded situation awareness of the Aircraft direction by both flight crewmembers due to lack of external peripheral visual watch and runway confirmation. Also, a contributing factor to the Incident was that the air traffic controller did not monitor the Aircraft movement after take-off clearance was given.

Air Traffic Controller - Representative

SOPs changed as per recommendation

Post-Incident, the Operator issued amendments to the standard operating procedure (SOP). The Operator instructed the pilots that they shall exercise extra caution when using an intersection and confirm the correct direction for line-up. For increased situation awareness, the following phraseology was introduced:

PF: “Lining up Left/Right for Runway XX.”PM: “Affirm/Negative” after crosscheck.”

In addition, the Aircraft Operator made changes to the trainee pilot’s intersection take-offs with lessons learnt from the Incident.

Representative image - Credits: Yerbol

About Air Arabia

The Middle East's first low-cost carrier, Air Arabia was established in 2003 by the Ruler of Sharjah and the Supreme Council of the United Arab Emirates and is now a publicly-listed company based in Sharjah with secondary hubs at Ras Al Khaimah International Airport, UAE as well as Casablanca and Cairo. Air Arabia’s network includes services within the Middle East, the Indian Subcontinent and Europe. Air Arabia has established JV subsidiary airlines in Egypt and Morocco with local investors in each country. This is part of the airline's strategy to create the first pan-Arab airline.

Click here to self investigate further using the official Sharjah Aerodrome Chart as per AIP

OTP, or On-Time Performance, is a widely used metric for measuring punctuality in a variety of modes of public transportation, not just aviation. It gives you a standardised way to compare how well one service provider adheres to its published schedule versus another.

In aviation, an on-time departure or arrival is defined as one that occurs within 15 minutes of the scheduled departure or arrival time. The schedule is the foundation of the airline's customer proposition.

Top 10 Global airlines of 2021 on the On-time performance parameter

External disruptions such as bad weather, traffic, incidents, and industrial action will inevitably cause delays for operators, but in general, OTP can be influenced by airline and airport performance.

As a result, it is widely used as a powerful key performance indicator for airlines and airports, as well as a potential service differentiator for brand marketing to air travellers.

Let's have a look at the Top 10 Airlines around the globe for January 2021 - December 2021 based on their On-Time Performance.

1. LATAM Airlines Group

The largest airline in Latin America, LATAM Airlines Group is the most punctual airline in 2021 in the world, according to OAG. It moved up a position from second in 2019 (pre-pandemic) to first position in 2021 (post-pandemic) in On-Time Performance.

LATAM Airlines Group was formed through the merger of LAN Airlines and TAM Airlines which was officially completed in June 2012. The merged airline group operates an extensive network of passenger and cargo services internationally and throughout Latin America. A phased roll-out of the LATAM identity commenced in 2016, with the launch of LATAM divisions - LATAM Cargo and LATAM Airlines.

LATAM Airlines A320 (Image Courtesy - AIB Family Flights)

LAN and TAM continue to operate under their existing brands and maintain their current headquarters in Santiago, Chile and Sao Paulo, Brazil respectively. As of January 15, 2022, LATAM Airlines Group has a fleet size of 298 aircraft.

2. Japan Airlines

The second position in 2021 was held by Japan's flag carrier, Japan Airlines. It dropped a position in 2021 (post-pandemic). It was the number 1 airline in On-Time Performance in 2019 (pre-pandemic).

Based in Tokyo, Japan Airlines (JAL) is one of Japan's two major flag carriers with hubs at Tokyo’s Narita International Airport, Tokyo International Airport, Nagoya’s Chubu Centrair International Airport and Osaka’s Kansai International Airport.

Japan Airlines B787 Dreamliner (Image Courtesy - Airline Geeks)

Operating a large fleet of narrow and wide-body aircraft, JAL has an extensive domestic network with regional and international services to Europe, Canada, the United States, and Australia. JAL is a member of the OneWorld alliance.

JAL group operations include scheduled and non-scheduled international and domestic passenger and cargo services to 220 destinations in 35 countries worldwide, including codeshares. As of January 15, 2022, the group has a fleet of 157 aircraft.

3. Delta Air Lines

United States' major airline, Delta stood third in the list. There was no change in Delta's position in 2021 (post-pandemic) as compared to 2019 (pre-pandemic) in On-Time Performace.

Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along with its subsidiaries and regional affiliates, including Delta Connection, operates over 5,400 flights daily and serves 325 destinations in 52 countries on six continents. 

Delta B767 (Image Courtesy - Wikimedia Commons)

Delta is a founding member of the SkyTeam airline alliance. Delta Air Lines also holds a minority stake in Hanjin KAL, the holding company of Korean Air (5.13%).

It is ranked second among the world's largest airlines by the number of scheduled passengers carried, revenue passenger kilometres flown, and fleet size. It is ranked 69th on the Fortune 500. As of January 15, 2022, Delta has a fleet size of 843 aircraft.

4. IndiGo

InterGlobe Aviation owned IndiGo stood at the fourth position in On-Time Performance in the world in 2021. It moved two positions upwards in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

IndiGo is an Indian low-cost airline headquartered in Gurgaon, Haryana, India. It is the largest airline in India by passengers carried and fleet size, with a 53.5% domestic market share as of October 2021. 

It is also the largest individual Asian low-cost carrier in terms of jet fleet size and passengers carried, and the sixth-largest carrier in Asia with over 6.4 crores (64 million) passengers carried in the financial year 2018–19. It has its primary hub at IGI Airport, Delhi.

IndiGo A320Neo

The airline was founded as a private company by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal in 2006. It took delivery of its first aircraft in July 2006 and commenced operations a month later.

The airline became the largest Indian carrier by passenger market share in 2012. The company went public in November 2015. As of January 15, 2022, IndiGo has a fleet size of 253 aircraft.

5. Azul Airlines

Brazilian Carrier, Azul Airlines stood at the fifth position in On-Time Performance in 2021. It moved two positions upwards in the punctuality position in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

Azul Linhas Aéreas Brasileiras (Azul) was established by former JetBlue Airways CEO, David Neeleman in March 2008, with the Brazilian low-cost carrier commencing operations nine months later in December 2008. Azul offers one of the largest domestic networks of any airline in South America, providing over 800 services to more than 100 destinations across Brazil.

Azul Linhas Aéreas Brasileiras A320Neo

The carrier is based at Campinas Viracopos Airport with a secondary hub at Belo Horizonte Tancredo Neves International Airport. Azul is privately-owned and in May 2012 announced that it would merge with the fellow domestic airline, TRIP. The merger was finalised in May 2014, with the combined carrier holding a 15% share of the domestic travel market. Azul is the launch carrier for the Embraer 195-E2.

According to the Brazilian Civil Aviation Authority (ANAC), between January and December, 2019 Azul had 23.5% of the domestic and 5.0% of the international market shares in terms of revenue passenger kilometres (RPK), making it the third-largest domestic and second largest international airline in Brazil. As of January 15, 2022, Azul has a fleet size of 158 aircraft.

6. Easyjet

British low-cost airline, EasyJet stood at the sixth position in On-Time Performance in 2021. There was a downfall of two ranks in the punctuality position of the airline in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

Easyjet A320 (Image Courtesy - Airways Magazine)

easyJet is one the largest low-cost carriers in Europe, operating on over 600 routes via its primary hub at London Gatwick Airport. Utilising an extensive fleet of more than 200 A320 aircraft, the carrier operates an extensive network throughout Europe as well as northern Africa and Israel.

As of January 15, 2022, Easyjet's fleet consists of 159 aircraft.

7. American Airlines

In the seventh position, we have American Airlines. Major US carrier, American Airlines stood at the seventh position in On-Time Performance in 2021. It moved three positions upwards in the punctuality position in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

American Airlines is a wholly-owned airline subsidiary of American Airlines Group Incorporated. With hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, Washington DC and Tokyo, American Airlines operate an extensive network including domestic and regional services within North America and international services to Europe, Asia Pacific, Central America and South America.

American Airline B787 Dreamliner (Image Courtesy - Wikimedia Commons)

Following the merger of AMR Corporation and US Airways Group in 2013, US Airways integrated with American Airlines under a single Air Operators Certificate (AOC).  The airline handles more than 200 million passengers annually with an average of more than 500,000 passengers daily. As of 2019, the company employs nearly 130,000 people.

It is the world's largest airline when measured by fleet size, scheduled passengers carried, and revenue passenger mile. American, together with its regional partners, operates an extensive international and domestic network with almost 6,800 flights per day to nearly 350 destinations in more than 50 countries. As of January 15, 2022, American Airlines' fleet consists of 901 aircraft.

8. Aeroflot Russian Airlines

Russia's largest national carrier, Aeroflot Airlines stood at the eighth position in On-Time Performance in 2021. There was a downfall of three ranks in the punctuality position of the airline in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

Established in 1923, Public Joint Stock Company Aeroflot - Russian Airlines (Aeroflot PJSC) is part of the Aeroflot Group, a state-owned enterprise of the Russian Government. The carrier operates domestic and international passenger services, mainly from its hub at Moscow Sheremetyevo International Airport. 

Aeroflot B777 (Image Courtesy - Wikimedia Commons)

Aeroflot became a member of SkyTeam in April 2006, making it the first carrier in the former Soviet Union to do so. As of March 2020, the Russian Government owns 51% of Aeroflot through the Federal Agency for State Property Management, with the rest of the shares being free-floating.

The carrier was the first Russian airline company to join IATA, in 1989. The airline flies to 146 destinations in 52 countries, excluding codeshared services. As of January 15, 2022, Aeroflot's fleet size consists of 184 aircraft.

9. United Airlines

One of the world's largest airlines, United stood at the ninth position in On-Time Performance in 2021. It was a single rank down in the punctuality position in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

United Airlines is one of the world’s largest airlines, following the merger with Continental Airlines in 2010. The carrier operates an extensive domestic and regional network of services from its main domestic hubs at Chicago O’Hare, Denver, Houston George Bush, Los Angeles, Newark Liberty, San Francisco, Washington Dulles and Guam airports.

United Airlines B777 (Image Courtesy - Wikimedia Commons)

United Airlines utilises a large fleet of narrow and wide-body Airbus and Boeing aircraft and operates international services to Central America, South America, Asia, Australia, Europe and Africa. Measured by fleet size and the number of routes, it is the third-largest airline in the world. As of January 15, 2022, United's fleet size consists of 857 aircraft.

10. Alaska Airlines

Major American airline, Alaska Airlines stood at the tenth position in On-Time Performance in 2021. It was a single rank down in the punctuality position in 2021 (post-pandemic) as compared to 2019 (pre-pandemic).

Alaska Airlines is a listed US airline founded in 1932 by holding company Alaska Air Group, Inc. The carrier operates scheduled freight and air services to North and Central American destinations. Alaska Airlines' operations are based largely on the West Coast of America, with transcontinental and international service operating from its hubs at Anchorage, Seattle, Portland, and Los Angeles airports.

Alaska Airline A320 (Image Courtesy - Wikimedia Commons)

It is the fifth-largest airline in the United States when measured by fleet size, scheduled passengers carried, and the number of destinations served. The airline operates out of five hubs, with its primary hub being at Seattle–Tacoma International Airport. As of January 15, 2022, the fleet size of Alaska Airlines consists of 317 aircraft.

Top 10 Airlines On-Time Performance Data - OAG

Fleet Size Data - Planespotters.net

Air India aircraft maintenance technicians, employees who are on a fixed-term contract with the national carrier, have threatened to go on strike on January 17 over long-pending issues such as employment contract renewal, salary revision and like.

Among the jobs handled by aircraft maintenance technicians are aircraft fueling and readying for departure, marshalling, maintenance jobs etc.

"Most of us earn a minimum wage of INR 25,000 and despite that, the airline included our salaries too for cuts imposed under economic measures. Since May 2020, a sum out of INR 1100 is being deducted from our salary. We have demanded a reimbursement," said a technician, requesting anonymity.

Air India aircraft maintenance technicians, employees who are on a fixed-term contract with the national carrier, have threatened to go on strike.

He added that about 1,700 of them across India will opt for a "tool down" agitation a week from now.

On Monday, January 10, a letter listing their demands was sent to the CEO of Air India Engineering Services Ltd (AIESL), the airline's engineering subsidiary.

The said technicians comprise about 50 % of AIESL staffers, said an Air India source. "Many of us have completed five years with Air India and our contracts will come up for renewal. The airline management has been silent on our long pending queries," the technician added.

There seems to be more trouble for Tata Group as employees of Air India's most consistently profitable subsidiary Air India Express have given the notice to go on an indefinite strike from January 15, pressing their demands related to contract re-negotiation and changes to COVID related pay revisions.

ALSO READ - Air India Express Cabin Crew threaten to go on strike indefinitely

Over 500 cabin crew under the Air India Express Employees Union (AIXEU) are likely to go on strike as they allege that the management has shown discrimination while issuing contracts.

The demands listed by the union are: 

1. Renew the contract term of the cabin crew employees on par with the contracts issued to other departmental staff for 5 years. 2. Comply with the order of the Court of State Commissioners for Persons with Disabilities and immediately take steps to allow Mr Basil to join the Company. 3. Ensure that steps are taken to address the concerns of the female staff in the company. 4. Ensure that there are no inordinate delays in processing career progression as well as in the matter of contract renewals. 5. Take actions to stop that the dictatorial and arbitrary practices of the Management Pilot 6. Ensure that this and transparent procedure is practised in matters of recruitment. 

The AIXEU represents about 500 cabin crew personnel, and any strike would significantly impact aircraft operations.

The Tatas have been keeping a close eye on protesting employees of the Air India group and would want the airline to fix these issues before the official handover. Furthermore, with reports of a possible merger of AI Express with AirAsia India, the Tata Group would want to resolve any pending issues with employees for a relatively smooth transition.

India’s first flying taxi startup ‘The ePlane Company’, which plans to launch electric planes for intra-city travel, announced on January 10 that it has raised $5 million in pre-series. Funding led by hard-tech venture capitalists Speciale Invest and clean mobility fund Micelio. The new funds will be used to make investments in product development, to increase engineering bandwidth, initiate local certification, and hire more employees, as said by the company officials

https://twitter.com/ePlaneCompany/status/1480555187332812800

Vishesh Rajaram, Managing Partner, Special Invest, said “The eplane Company is one of the unique companies with the vision to create technology that will make India self-sufficient. We at Speciale Invest are fortunate to be associated with them. It aligns with our vision of backing disruptive companies solving global problems via tech innovations very well. With this round, they are well on their way to making regional aerial transportation a reality. All the very best to them.”

First lab-scaled E200 aircraft model

The consortium of investors who participated in this round of funding for the Chennai-based startup included Naval Ravikant, 3one4 Capital, UTEC (University of Tokyo Edge Capital), Anicut Capital, Infoedge, Prashant Pitti (co-founder of Easemytrip), Thought Ventures, Java Capital, and Firstcheque.vc.

The ePlane Company expects to get the first cargo plane ready by next year, Chakravarthy told Yourstory, adding that the cargo carrier is likely to be rolled out by February 2023, while the passenger flying taxi may come by December 2024. Preliminary discussions on the commercialization of the product are on.

Members of the startup

About "The ePlane Company"

The e-plane start-up, which was co-founded by Aerospace Engineering professor Satya Chakravarthy and his student, IIT Madras graduate Pranjal Mehta, in 2017, had raised $1 million in March 2020. The company, which aspires to build a compact flying taxi called the e200, has already test flown a lab-scale prototype. It has already flown a lab-scale prototype of the electric flying taxi, e200, which they claim can cut down travel time for door-to-door commute in cities greatly at just 1.5 times the fare of regular taxis.

Air Taxi or Flying Taxi (Picture Credit: ePlane archive)

Air Taxi or Flying Taxi

In 2001 air taxi operations were promoted in the United States by a NASA and aerospace industry study on the potential Small Aircraft Transportation System (SATS) and the rise of light-jet aircraft manufacturing. Since 2016, air taxis have reemerged as part of the burgeoning field of personal air vehicles, such as passenger drones.