Tata Group considering integrating all its airlines under the Air India brand

Tata Group is considering a plan to integrate its four airline brands under Air India, people with knowledge of the matter said, as the sprawling company prepares to rebuild its faltering aviation empire.

India’s largest conglomerate is also considering scrapping the Vistara brand, which is Singapore Airlines Ltd.’s local affiliate in the South Asian nation, the people said, declining to be identified because the discussions are private. Singapore Airlines is evaluating the size of the stake it should take in the combined entity, one of the people said.

ALSO READ - Tata Sons to unify all airlines under the Air India banner

Representatives for the Tata Group, Air India and Vistara didn’t respond to requests for comment. Singapore Airlines said in a statement that “discussions are ongoing between SIA and Tata” and that it had nothing further to add beyond an October 13 exchange filing, which said the talks “seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India.”

ALSO READ - Vistara – Air India merger talks with Tata Group confirmed by Singapore Airlines

Tata Group considering integrating all its airlines under the Air India brand

ALSO READ - Vistara a key booster for Singapore Airlines’ multi-hub strategy

Air India is gearing up for a revamp under its new owner Tata. The full-service carrier is considering ordering as many as 300 narrow-body jets, a transaction that would be one of the largest orders ever in commercial aviation history. Air India Chief Executive Campbell Wilson last month said the airline will triple its fleet of 113 aircraft over five years, with a “significant” increase in both narrow and wide-body aircraft.

ALSO READ - Air India considering raising USD 1 billion to power its expansion plans

Air India is also in discussions to raise at least USD 1 billion in a funding round that could value the carrier at around USD 5 billion, other people familiar with the matter said in late September. The airline is planning to add 25 Airbus and five Boeing aircraft from lessors, starting in December.

ALSO READ - Air India to get working capital loans worth INR 15,000 crores

Air India's narrow-body fleet stands at 70 aircraft. Out of them, 54 are in service and the remaining 16 aircraft will progressively return to service by early 2023. The wide-body fleet stands at 43 aircraft, of which 33 are operational.

ALSO READ - Air India to revamp its fleet by leasing 30 aircraft in the upcoming months

Air India is planning to add 25 Airbus and five Boeing aircraft from lessors, starting in December.

Tata was selected as the winning bidder for Air India in October 2021 after beating rival suitors with a USD 2.4 billion offer. The transaction marked the country’s most high-profile privatization under Prime Minister Narendra Modi, ending decades of attempts to offload the money-losing, debt-laden carrier that survived on years of taxpayer bailouts.

ALSO READ - AirAsia India is now a fully-owned subsidiary of Air India

It also meant Tata had four airline brands -- Air India and other full-service carriers Vistara, along with budget carriers Air India Express and AirAsia India. Air India earlier this month said it is acquiring AirAsia’s local venture and merging it with Air India Express into a single low-cost carrier. That consolidation will likely happen by the end of 2023.

ALSO READ - Air India to integrate AirAsia India with Air India Express by the end of 2023

The integration of all Tata group airlines under the Air India brand will create an entity with nearly 200 aircraft and more than 800 domestic and international departures. This would make it the country’s second-largest airline after IndiGo. Air India is also expected to announce one of the largest aircraft orders in recent times which would lead to an almost threefold increase in its fleet size.

Tata Group could own about 75%, SIA 25% in the Air India-Vistara merger

The Tata Group and Singapore Airlines (SIA) are learnt to have finalised the proposed merger of Air India and Vistara. While Tatas will have about 75% stake in the merged entity, the remaining will be with SIA, say people in the know. In Vistara, Tatas and SIA’s stake is at 51% and 49%, respectively.

Tata Group could own about 75%, SIA 25% in the Air India-Vistara merger

According to a report published in The Times of India, the proposed merger, which is targeted to be completed within a year of getting all required approvals, is likely to be announced shortly.

For this, Vistara may be merged into AI. Also, AirAsia India (AAIPL) and AI Express may be merged. But all the mergers would require clearance from several agencies including the Competition Commission of India (CCI). It might take up to 6 months, the report said.

However, the report further said that the merger may not be completed within one year. In June, the Competition and Consumer Commission of Singapore (CCCS) expressed concern over Tata Group acquiring SIA.

One of the executives said that SIA had agreed to become part of the merged entity because India is a key market for the carrier. "SIA has reaped benefits from Vistara and realises that the cost of scaling up Vistara will be significantly higher as compared to Air India, which already has a significant size," said the person.

(With Inputs from Bloomberg and The Times of India)

At its Open House event in Palo Alto, California, Archer Aviation, a pioneer in eVTOL aircraft, publicly introduced Midnight, a pilot-plus four-passenger eVTOL aircraft. Midnight is the evolution of Maker, an eVTOL demonstrator aircraft from Archer that has proven the viability of its unique twelve-tilt-six arrangement and other critical enabling technologies.

AVweb

With an anticipated payload of more than 1,000 pounds, Midnight is made with safety, sustainability, and quietness in mind. It can also accommodate four passengers and a pilot. Midnight is designed for two consecutive short rides of up to 20 miles, with a charging break of about 10 minutes.

As part of its UAM network, which it intends to implement in 2025, Archer will deploy Midnight once it has been certified by the FAA in late 2024.

From day one Archer’s strategy has always been about finding the most efficient path to commercializing eVTOL aircraft. We believe our strategy and team's ability to execute on it has allowed us to establish our leadership position in the market, and is why we are confident we will be the first company to certify an eVTOL aircraft in the US with the FAA- said Adam Goldstein, Archer’s Founder and CEO

By fusing high function and high emotion, Archer's distinctive design approach for Midnight aims to create in passengers a desire to experience it, much like the 1950s Golden Age of Aviation. Midnight, in Archer's opinion, will take the lead in this new era of vertical flying.

Balanced Powertrain System capable of over 3,000 flight cycles, and allows for a rapid charge time of around 10 minutes between flights | Archer

Modern aircraft systems are combined with cutting-edge electric propulsion technology by Midnight to create the essential characteristics of the eVTOL aircraft:

Safety : In comparison to a helicopter, the eVTOL is substantially safer because of its high redundancy and simplified propulsion systems. Midnight doesn't have any single critical points of failure, therefore even if one component fails, the aircraft can still fly safely the rest of the way. Midnight's electric motors also require substantially less maintenance and have a reduced risk of failure than gas turbine or piston engines since they have fewer moving components.

Low noise : The noise of Midnight, which is built to cruise at about 2,000 feet, is anticipated to register around 45 A-weighted decibels (dBA), which is nearly 1,000 times lower than that of a helicopter. Further reducing noise levels, the aircraft's tilt propellers spin during forward flight on axes that are parallel to the incoming air flow rather than edge-wise to the flow, as is the case with conventional helicopters.

Sustainable : Midnight has no operational emissions because it is entirely electric. In order to power its aircraft, Archer is dedicated to finding renewable energy wherever possible. The design and engineering teams at Archer put forth a lot of effort to include materials with distinct sustainability stories into this aircraft. For instance, the seats aboard Midnight are made of "flax" fiber, a naturally occurring plant that needs little watering and absorbs a lot of carbon dioxide. Additionally, cloth from recycled materials like plastic bottles is used in Archer's design.

In order to evaluate whether the design is practical for Type Certification and commercialization, Archer concluded Midnight's preliminary design assessment in August, which covered every area of the aircraft's specifications and manufacturing needs.

We continue the push towards commercialization, with the vast majority of our resources focused on completing the development and certification of Midnight, building out our manufacturing and supply chain capabilities and hardening our go-to-market plans- said Mark Mesler, Archer’s CFO

https://www.youtube.com/watch?v=kZD5Ni7Ao2c

Within a year of its initial hover flight, Archer has likewise made quick progress in Maker's flight testing program and is on track to perform a full transition flight in the upcoming weeks. By reaching this goal, Archer will be able to support the flight dynamics of its exclusive twelve-tilt-six configuration, which it uses on Maker and Midnight.

SOURCE: investors.archer.com

COVER: Teslarati

HAL (Hindustan Aeronautics Limited) stock soared to a new 52-week high on Wednesday, November 16, extending its advances for a fourth straight day.

The stock has increased by more than 10% in the past four trading sessions. During intraday trade on November 16, it reached a high of Rs 2,709. The stock's worth this year has more than doubled! This occurred after the company acquired a Letter of Intent (LoI) from the Indian Coast Guard (ICG) for 9 additional Advanced Light Helicopters (ALH) Mk-III.

https://twitter.com/HALHQBLR/status/1592453194957090816

The state-owned aerospace and defense company's stock has risen above the previous record high of Rs. 2,639 set on September 12, 2022. 3.23 million shares were traded on the NSE and BSE together up to 1:31 p.m., more than doubling the counter's previous trading volume.

The company's earnings increased by 44.15 per cent in the September quarter, from Rs 847 crore in the corresponding quarter last year to Rs 1,221 crore. A 90 percent increase in the company's other income was the cause of the profitability growth. But the quarter's revenue had decreased 7 per cent year over year.

Hindustan Aeronautics Ltd. (HAL), an aerospace and defense business owned by the Indian government, is based in Bengaluru, Karnataka, India. The business is run through a network of production sites, as well as research and design hubs throughout India.

HAL produces and manufactures helicopters, avionics and communication equipments indigenously

The business creates, produces, manufactures, and provides helicopters, avionics, and communications equipment for both the military and civil industries. Additionally, it offers support, maintenance, and repair services for airplanes.

The final of the 16 ALH Mk-IIIs was delivered to ICG on Tuesday, November 15, according to a statement from HAL. A contract for the supply of 16 ALHs to ICG by HAL and a value of approximately Rs 5,126 crore was signed in March 2017.

HAL developed, built, and designed the ALH Mk III on its own. According to the company's press statement, it has so far built more than 330 ALHs, a multipurpose helicopter with more than 3.74 lakh flying hours. 

ICG has merely signed a LoI, therefore according to ICICI Securities, HAL should receive this contract for nine additional ALHs within the next six months. HAL would be able to produce 60 helicopters annually, which may include ALH, Light Combat Helicopters (LCH), or Light Utility Helicopters (LUH), once the new Tumkur (Karnataka) plant is slated to be operational in Q3FY23.

ICG has signed a LoI (Letter of Intent), and within the next six months, HAL ought to acquire this contract for nine more ALHs

The brokerage stated in a note that HAL has an order book of Rs 83,858 crore as of September 2022 (3.2x TTM revenues) and an order pipeline of Rs 50,000 crore for the next one to one and a half years, which would include this order and other helicopter orders like 25 ALHs for the Army and six LUHs for the IAF and Army.

HAL reported an income of more than Rs 24,000 crore, a record-breaking amount! The firm also disclosed a 20 rupee dividend per share. In the interim, HAL's stock will become ex-date for an interim dividend of Rs 20 on Friday, November 18. The record date for the payment of the first interim dividend has been set by the firm as Monday, November 21.

India's scores in the ICAO's air safety oversight audit will improve substantially as the international watchdog's just-concluded validation mission was highly successful as per the initial reports, regulator DGCA said on Wednesday, November 16.

ICAO is the International Civil Aviation Organisation. Under its Universal Safety Oversight Audit Programme (USOAP) Continuous Monitoring Approach, an ICAO Coordinated Validation Mission (ICVM) was undertaken from November 9 to 16.

ALSO READ - ICAO will carry out a safety audit of India's aviation sector

The International Civil Aviation Organization is a specialised agency of the United Nations that coordinates the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth.

In a release on Wednesday, November 16 the Directorate General of Civil Aviation (DGCA) said the audit was conducted in the areas of legislation, organisation, personal licensing, operations, airworthiness and aerodromes.

"As per the initial reports, the mission was highly successful. India has done extremely well and our scores will see a substantial improvement putting us in the company of nations with the best safety standards and oversight systems," the release said.

While the formal communication from ICAO will be received in due course of time, it is to be noted that this is India's best performance to date, the regulator said.

India is one of the fastest-growing civil aviation markets globally and the sector is slowly recovering after being hit by the coronavirus pandemic.

USOAP monitors eight audit areas. They are Primary Aviation Legislation and Civil Aviation Regulations, Civil Aviation Organization, Personnel Licensing and Training, Aircraft Operations and Airworthiness of Aircraft. Other areas are Aircraft Accident and Incident Investigation, Air Navigation Services, and Aerodromes and Ground Aids.

In November 2017, ICAO carried out the Universal Safety Oversight Audit Programme for India and another team of the watchdog came in February 2018. The audit result showed that the country's score declined to 57.44% from 65.82% earlier, placing India below Pakistan, Nepal and many other countries.

However subsequently the civil aviation ministry and DGCA took steps following which the score improved to 74%. A better score in the ICAO audit will mean a robust aviation safety ecosystem in India and also helps airlines in their international expansion plans.

In November 2018, an ICAO team visited India and assessed the action taken on issues related to three areas that were audited by the watchdog in November 2015. Those pertained to Aerodromes and Ground Aids, Air Navigation Services (ANS) and Aircraft Accident and Incident Investigation.

During the November 2017 visit, the ICAO team assessed five areas -- Personnel Licensing and Training, Aircraft Operations, Airworthiness of Aircraft, Primary Aviation Legislation and Civil Aviation Regulations, and Civil Aviation Organisation.

Through USOAP, ICAO monitors the fulfilment of the safety oversight obligations by its member states. USOAP CMA is a strategy that uses a risk-based approach for measuring and monitoring the safety oversight capabilities and improving the safety performance of states and global aviation continuously.

ICAO also carries out ICVM to ascertain whether previously identified safety deficiencies have been resolved satisfactorily by assessing the status of corrective action plans or mitigating measures taken by member states to address findings.

Civil aviation in India has recovered swiftly this year, as the threat posed by coronavirus has declined. In October, the daily number of domestic air passengers touched 4 lakh, which is close to the pre-COVID level.

The timing of this audit is also critical, with India witnessing several air incidents and passenger complaints this year. The DGCA has been keeping quite busy all through 2022, performing clean-up drives, issuing warnings, and performing regular and sporadic checks on aircraft of multiple airlines.

In September, it announced a two-month special audit of all Indian airlines to check everything, from the availability of trained, experienced, and authorized staff to the maintenance record-keeping of all aircraft.

The MoCA announced on Wednesday, November 16 that mask use is no longer required for air travel and that there will be no penalties for it.

It is still recommended that passengers wear masks and facial coverings. The Ministry of Health & Family Welfare was consulted during a review of the regulation requiring the use of masks or face covers during air travel.

On November 16, the MoCA declared that wearing a mask when flying is no longer necessary

Until recently, wearing a mask or facial cover while flying was required. The ministry stated in a statement to the scheduled airlines that the most recent decision was made in accordance with the government's policy of a phased approach to COVID-19 management response.

The decision to not make masking mandatory was taken “in line with the government of India’s policy of graded approach of Covid-19 management”

“In-flight announcements henceforth may only mention that in view of the threat posed by Covid-19, all passengers should preferably use mask/face covers. Any specific reference to fine/penal action need not be announced as part of the inflight announcements.”

–An Office Memorandum issued by the Ministry following a review of the Covid guidelines it had issued in May 2022.

https://twitter.com/ANI/status/1592848877698580480?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1592848877698580480%7Ctwgr%5Ea801079c9fac9c7c4fdd81e80e2e190e8ea27c64%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fscroll.in%2Flatest%2F1037603%2Fmasks-no-longer-compulsory-during-air-travel-says-centre

A senior ministry official said the decision is applicable to all airlines. According to a representative of the airline industry, the ministry's decision is effective immediately, and carriers will inform the crew of this.

Many state governments had made masking optional over six months prior as a result of a decline in Covid cases. Early in June, the state of Maharashtra modified its Covid regulations to make masks optional.

However, the DGCA had emphasised that masks were required and had urged airports and airlines to strictly enforce compliance. Additionally, according to the DGCA letter, passengers who refuse to put on their masks should get off the plane before takeoff, and anyone still on board who disobeys would be classified as an "unruly passenger."

With the declining rate of Covid-19 cases, the civil aviation ministry has removed mask requirements for airlines as the COVID-19 situation in Delhi, Mumbai, and other Indian cities improve. Passengers do not need any face masks for air travel now.

According to experts, the virus has become endemic, which means it is here to stay. The number of infections in India, however, has decreased as a result of hybrid immunity. Despite the positive trend in case numbers, the virus will persist.

Consequently, as a precaution, passengers are advised to cover their faces. Long Covid is a problem that affects many people, and experts stress that it would be a mistake to forgo prudence.

As a precaution, passengers are still advised to wear their masks and face covers

Also read: Delhi HC asks DGCA to review mask norms in flights

According to the most recently available official data, the number of COVID-19 cases that were still actively being treated in the nation made up just 0.02% of all infections, and the recovery rate rose to 98.79%. 4,41,28,580 persons have recovered from the illness, and the case fatality rate has been noted at 1.19%.

On November 15, Delhi reported 14 additional cases. Kolkata recorded only nine new cases whereas Mumbai reported 27 on the same day.

Hindustan Aeronautics Limited (HAL) handed over the last of the 16 Advanced Light Helicopters ALH MK-III, Maritime role to the Indian Coast Guard on Tuesday, November 15. The chopper was handed over to DG, Coast Guard, V.S. Pathania, in the presence of senior officials from the Indian Coast Guard and HAL.

"We are proud to be associated with HAL and happy to issue a Letter of Intent (LoI) for nine more helicopters. Despite Covid-19, HAL delivered all the helicopters in the shortest time with seamless production activities and this allows us to strengthen India's maritime security."

V.S. Pathania, DG, Coast Guard

ALSO READ - ICG Chief undertakes the first flight in a home-grown LUH

HAL also received a Letter of Intent (LoI) from the maritime organisation for nine more ALH Mk-III helicopters.

The Indian Coast Guard has acquired ALH Mk-III helicopters for diversified roles, which include maritime surveillance, search and rescue, medical evacuation, logistics support to ships and interdiction.  These choppers have been deployed at Porbandar, Bhubaneshwar, Kochi and Chennai.

https://twitter.com/IndiaCoastGuard/status/1592563290458140672

S. Anbuvelan, CEO (Of helicopter Complex), HAL, pointed out the significant challenges in the execution of the contract that included integration of new systems sourced from foreign OEMs, conducting flight trials for certifications and overcoming disruptions in the supply chain due to lockdowns.

"A unique feature of the contract has been the performance-based logistics (PBL) - the one-stop solution for the maintenance of these helicopters by HAL.

This will serve as a benchmark for all our future contracts and boost our resolve to work with private partners to speed up the work in the interest of all our customers and strengthen Make-in-India activities in the defence eco-system."

C.B. Ananthakrishnan, CMD, Hindustan Aeronautics Limited (HAL)

The Coast Guard will also be setting up a committee comprising all stakeholders, including Hindustan Aeronautics Limited (HAL), that will define the qualitative requirements of a maritime single-engine helicopter for replacing its Chetak fleet, it said in a statement. It is evaluating the capabilities of the indigenous Light Utility Helicopter (LUH) in meeting the maritime challenges and serving as a Chetak replacement.

https://twitter.com/HALHQBLR/status/1592453194957090816

The Indian Coast Guard signed a contract for INR 5126 crore with HAL for the supply of 16 ALH Mk III in March 2017. ALH Mk-III is indigenously designed, developed and produced by HAL. So far, the company has produced more than 330 ALHs, a versatile helicopter that has logged more than 3.74 lakh flying hours.

ALSO READ - Indian Coast Guard commissions Made in India ALH Dhruv Mark III Helicopters

An ALH Mk-III chopper comes equipped with surveillance radar, an electro-optic pod, medical intensive care unit, a high-intensity searchlight, an infrared suppressor, a heavy machine gun, glass cockpit and is powered by two shakti helicopter engines. The helicopter is indigenously designed, developed and produced by HAL.

The Indian Coast Guard signed a contract for INR 5126 crore with HAL for the supply of 16 ALH Mk III in March 2017. (Image Courtesy – Shrey Chopra)

HAL has an order book of INR 83,858 crore as of September 2022 (3.2x TTM revenues) with an order pipeline of INR 50,000 crore for the next 1-1.5 years, which would include this order and other helicopter orders like 25 ALHs for the Army and six LUH each for the IAF & Army, the brokerage said in a note.

HAL stocks rally 7%

Shares of Hindustan Aeronautics jumped 7% to hit an all-time high of INR 2,697.70 on the BSE in Wednesday, November 17’s intra-day trade amid heavy volumes after the company received a letter of intent (LoI) for nine more advanced light helicopters (ALH) Mk-III from the Indian Coast Guard (ICG).

The stock of the state-owned aerospace & defence company has surpassed its previous high of INR 2,639 touched on September 12, 2022. The trading volumes on the counter jumped four-fold with a combined 3.23 million shares changing hands on the NSE and BSE, till 01:31 pm.