Tata Sons working on a merger between AirAsia India and Air India Express

Tata Sons Ltd—the holding company for India’s largest conglomerate—has reportedly started work on the merger of budget carrier AirAsia India with Air India’s low-cost airline Air India Express in a bid to attain synergies and reduce operational costs.

Worth mentioning here is that this first move to consolidate its control and form a single company in such a short duration as Tatas took control of AirAsia India by increasing its stake to 84% from 51%. Tata is yet to conclude negotiations with Singapore Airlines (SIA) on combining the schedules of Vistara and Air India, people with knowledge of the matter told The Economic Times. Tata has a 51% stake in Vistara and SIA holds the rest.

The financial daily quoted one of the persons as saying, “This is the most logical move at this stage and with Tata owning a majority in Air Asia, the integration is easier. With many experts on deck, this integration will help the group swiftly set up the single airline structure it has been planning for a while.” 

More importantly, the Mumbai-based cars-to-coffee conglomerate had roped in integration experts to create a single aviation company, given the complexities involved in combining multiple organisational structures.

In October this year, Tata Sons regained control of Air India—the airline it founded nearly 90 years back—as the Centre accepted its winning bid of INR 18,000 crore to acquire 100% of the ailing national carrier. Air India Express is a wholly-owned subsidiary of Air India.

(Image Courtesy - Business Insider India)

Of late, Tata Sons held several rounds of talks with the top management of AirAsia India and Air India to discuss the integration of staff, and aircraft quality and safety checks, among other issues. Also, external integration experts were part of these meetings. 

“There is a sense of urgency to quickly get operations seamlessly off the ground and ensure no disruptions at customer-facing points,” the daily cited one of them as saying.

In April 2005, Air India Express was launched as a low-cost carrier to provide convenient connectivity to short/medium-haul international routes in the Gulf and southeast Asia at affordable fares, according to the company website.

According to the publication, Tata Sons has asked global head hunters to create the top management structure for its aviation entity as it is poised to establish one aviation holding company to bring the entire airline business under one umbrella. Malaysian budget airline AirAsia Group Bhd, the minority stakeholder in AirAsia India, will cease Indian operations by the end of this fiscal year and the brand won't be part of the venture.

Tata plans to first integrate Vistara's network with Air India and will at a later date look at a closer union. Air India has a fleet of 121 planes and a staff count of more than 12,000.

Cover Image - NewsBytes

Singapore is in talks with the Ministry of Civil Aviation and the Ministry of External Affairs to restart scheduled commercial services with two daily flights each from Chennai, Delhi and Mumbai.

As of now, only repatriation is taking place through Air India, under the Vande Bharat mission.

Singapore has announced that from November 29 it will open up its Vaccinated Travel Lanes (VTL) for India and once the programme is in place there will be no need for quarantine for vaccinated passengers. There is huge pent up demand for travellers from both sides.

Technically, repatriation flights cannot be included under Singapore's VTL arrangement and only scheduled commercial flights are included in this programme.

Singapore is keen that Singapore airlines should restart partial operations to India. Sources say that talks for resumption of commercial flights between Singapore and India are moving in the right direction and there can be a decision soon.

External Affairs Minister S Jaishankar is currently in Singapore and holding talks with top leadership, resumption of connectivity also came up during his talks.

Yesterday, Jaishankar met the Singapore transport minister and discussed enhancing travel arrangements between the two countries. "Began my Singapore visit by meeting S. Iswaran, Minister of Transport. Discussed enhancing travel arrangements between the two countries," Jaishankar tweeted.

https://twitter.com/DrSJaishankar/status/1460875429321981952

India is not the only country with whom Singapore has established the VTLs. The country would allow non-quarantine travel from  Saudi Arabia, Indonesia, Qatar and the United Arab Emirates (UAE) from December 6. Since its initial COVID outbreak, Singapore has been battling a resurgence of the infection, stemming from foreign travellers a majority of whom are workers.  As of now, the country has reported a total of 237,203 cases and 586 deaths in Singapore.

(With Inputs from ANI)

Tripura Cabinet has decided to reduce the share of Value-Added Tax (VAT) levied on Aviation Turbine Fuel from 16% to 1% expecting better air traffic at Maharaja Bir Bikram Airport Agartala soon after it gets the international airport status.

"It is expected that the international airport status will be accorded to the airport as construction works are almost complete," Information and Cultural Affairs Minister Sushanta Chowdhury told reporters on Tuesday, November 16.

Addressing a press conference, the minister said, "with this deduction of the state's share of VAT on ATF, Tripura government will bear an annual loss of INR 1.67 crore."

Earlier, the government's earnings from the tax stood at INR 1.78 crore per annum, he added.

Presenting a detailed comparison with neighbouring states he said, "presently, West Bengal is charging 25 per cent VAT, Assam is charging 23.65%." "We are expecting the number of flights landing in MBB airport will increase after this step," he said.

The previous government used to charge an 18% tax on the ATF. In November 2018, the Bharatiya Janata Party (BJP)-led government reduced the state's share of tax by 2% and fixed it at 16%. Now, further reduction is done given the present situation, he added.

Madhya Pradesh too reduces the VAT

In a bid to enhance air connectivity, the Madhya Pradesh government has decided to reduce the Value Added Tax (VAT) on aviation turbine fuel (ATF) to 4% at Bhopal and Indore airports, a move it hopes will bring down airfares, an official said on Wednesday, November 17.

Currently, VAT on ATF was 25% at Bhopal and Indore airports, and with the decision to slash it taken by the state cabinet on Tuesday, it will come down to 4%, the official from the public relations department said.

"Like Gwalior, Jabalpur and Khajuraho airports where VAT on ATF is 4%, the state government has decided to rationalise it at Bhopal and Indore airports too by reducing it from 25% to 4%, the official said.

This decision will give a boost to the tourism and hospitality sector in the state, apart from enhancing air connectivity, he said.

The move will prompt the aviation companies to reduce airfares, introduce more flights from the state and provide relief to air passengers, the official said.

There are different slabs of VAT applicable in MP ranging from 4% to 25%.

ATF Prices in other regions

As per Indian Oil Corporation Limited, ATF Prices in Metros (Rupees/Kl) for Domestic Airlines on November 16 are -

MetrosPricesDelhiINR 80,835.04 per klKolkataINR 84,930.51 per klMumbaiINR 79,233.08 per klChennaiINR 83,171.15 per kl

ATF Prices in Metros (Dollars/Kl) for Domestic Airlines on International Run on November 16 are -

MetrosPricesDelhiUSD 817.37 per klKolkataUSD 856.56 per klMumbaiUSD 811.12 per klChennaiUSD 811.54 per kl

In August, to give impetus to air travel, Union Minister for Civil Aviation, Jyotiraditya Scindia has written a letter to 22 States/ UTs urging them to rationalize VAT on ATF across all airports in States within the range of 1% to 4%. He has asked them to take forward common intention to boost air travel and connectivity in State to accelerate its economic development.

High rates of taxes on expensive ATF hurt airline companies, as fuel is a major component of their cost of operations. Extreme competitive pressures to keep fares low prevent airlines from fully passing on the higher costs to passengers and freight. As a result, India’s domestic airlines were making losses much before the pandemic upset their operations.

After which several states have lowered the VAT on GST. Some of them are given below.

Jammu & Kashmir - 26% to 1%Haryana - 20% to 1%Uttarakhand - 20% to 2%Andaman & Nicobar - 26% to 1%Madhya Pradesh (Bhopal & Indore Airport) - 25% to 4%

The VAT on ATF is as high as 30% in Gujarat, 25% in Mumbai, 29% in Tamil Nadu and Bihar, 28% in Karnataka and over 20% in more than a dozen other states. 

Delhi and Maharashtra account for the highest consumption of ATF. Delhi’s consumption was estimated at 2,065 thousand million tonnes (TMT), which was equivalent to 25% of the total ATF consumption in 2018-19. Maharashtra’s share was about 20% of the total ATF consumption of 8,300 TMT that year. Foreign airlines accounted for about 22% of the consumption at the all India level.

Rakesh Jhunjhunwala-backed Akasa Air on Wednesday, November 17 said that it has signed an agreement with CFM International for its LEAP-1B engines in a deal valued at nearly $4.5 billion at list price to power the 737 MAX airplanes it recently bought.

The low-cost airline had placed an order for 72 Boeing 737 MAX jets on Tuesday, November 16, valued at nearly $9 billion at list prices. Akasa Air’s order includes two variants from the 737 MAX family, including the 737-8 and the high-capacity 737-8-200.

(Image Courtesy - Bangalore Aviation)

“We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmentally friendly company with the youngest and greenest fleet in the Indian skies,” said CEO Vinay Dube.

Jhunjhunwala, known as "India's Warren Buffett", has teamed up with former chief executives of IndiGo, the country's biggest carrier, and Jet Airways to tap into demand for domestic air travel, which is nearing pre-pandemic levels as the country recovers from a devastating outbreak earlier this year.

The agreement also includes spare engines and long-term services, the companies said in a joint statement.

The deal gives Akasa Air a comprehensive maintenance program delivered by CFM, the world's premier engine manufacturer.

(Image Courtesy - Flight Global)

With this purchase and services agreement, Akasa Air will have from day-1 of its operations an innovative and comprehensive maintenance programme delivered by CFM, which is a 50/50 joint venture between GE and Safran Aircraft Engines.

"The airline is pleased to partner with CFM International as it embarks on an exciting journey to launch the greenest, most affordable and most dependable airline in India.The state-of-the-art, high-performance LEAP-1B engine will support our tech-driven culture by enabling real-time engine monitoring and predictive maintenance planning. With this agreement, we now have the foundation to ensure the most competitive and reliable operations in our fast-growing market."Vinay Dube, CEO, Akasa Air

As per CFM, to date, nearly 600 engines are operated by airlines from the Indian subcontinent and over 1,700 LEAP engines are on order.

"It'll be a great honour to help launch this new airline with the industry-leading support and reliability that has become a hallmark of CFM International."Philippe Couteaux, Executive Vice President of Sales and Marketing, CFM International

CFM’s advanced LEAP engine has logged over 12 million engine flight hours in commercial operation. The LEAP-1B engine entered into service on the Boeing 737 MAX in 2017. Over 600 aircraft have been delivered to some 66 operators worldwide and the fleet has logged more than 2.5 million engine flight hours.

"The fleet is providing better fuel consumption and lower CO2 emissions, as well as a significant improvement in noise compared to the best CFM56 engines while maintaining the CFM legendary reliability," a CFM statement said.

Akasa plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India.

The first deliveries are expected to start early next year, in time for the airline to get its Air Operating Permit and start scheduled commercial service, according to a statement from Boeing.

This is a major step forward for the airline and a giant leap for Boeing - which has been trying to find a foothold in the Indian aviation market.

Representative | Military Embedded Systems

Several firms are getting on the bandwagon to launch their autonomous design of flying cars and taxis and LuftCar is no different. Except, the company is closer to launching the aforementioned models before anyone else in the market.

The hydrogen-powered autonomous vehicle designed by the company reportedly has two modules- the flying module and one when it is not flying-meaning it can just as easily race through the roads when it isn't airborne. Best of both worlds you say? You bet it is.

Apparently, it can clock a maximum of 150 miles (240 km) in one go reaching speeds of 220 miles per hour (350 kmph). Also, it can hit an altitude of around 4,000 feet thanks to six propellors attached as a part of its frame.The 5 seaters autonomous craft is priced at $350,000 and clearly, it is intended for the corporate giants and the affluent, looking for a quick ride.

 People will actually buy a small car and plane combined; hence they don‘t need to live in a congested city and travel from far-flung places to cities with easeSanth Sathya, founder and CEO of LuftCar, was quoted as saying by Khaleej Times

Hydrogen has immense potential to be used in local and commercial air transport-areas that electric batteries currently do not have the physical capacity to be a scalable option.

And if 2050 world climate obligations are to be met successfully, implementation of sustainable travel is the way to go.

The company is optimistic about bringing this disruptive technology to the fore as early as 2023.

For the unversed, LuftCar LLC, based in Florida, is founded by Santh Sathya. Alumni of Anna University, he envisions a fully hydrogen-powered vehicle and also emphasized how LuftCar can be used as an air ambulance, disaster relief, shared and personal mobility vehicle.

Currently, the CEO and his team are at the Dubai Airshow, pitching their innovation to potential investors and global customers.

https://twitter.com/LuftCar_US/status/1460326919321239554?ref_src=twsrc%5Etfw

COVER: Sakshi

A Delhi court has directed registration of FIR against two directors of a city-based air charter service company for allegedly failing to provide helicopter service to a man despite receipt of money, noting that the duo had an "intention to cheat".

Additional Sessions Judge Anuj Agrawal passed the order on the revision petition filed by complainant Anis Ahmad against the magistrate's order rejecting his plea seeking registration of FIR against the duo and an employee for not providing the helicopter for his niece's wedding after taking the payment of INR 5 lakh in March 2019.

The complainant alleged that the director did not return the paid amount after cancelling the service and stopped taking his calls, following which he came to know that they have closed the office.

He further said that one of the accused also threatened him. He filed two complaints at Jamia Nagar Police Station and with the Deputy Commissioner of Police (DCP) in September and October 2019 but no action was taken.

Police later told the court that the dispute was civil and there was no inducement or cheating.

Allowing the revision petition, the Additional Sessions Judge said, “It appears that respondent No.1 and 2 being Directors were having an intention to cheat the revisionist (Ahmad) since the beginning as they did not come up with an explanation as to why no services were provided to revisionist despite receipt of the amount.”

Further, there is nothing on record to suggest that they had requisite permission from the Competent Authority to provide the helicopter services to the complainant at the relevant time as promised, the judge noted.

“Investigation by police would be required for recovery of the cheated amount, for ascertaining if the respondent had requisite permission to provide the services as promised by them and for effective investigation,” he stated.

The judge added, “Present revision petition stands allowed. The impugned order stands set aside.

The magistrate is accordingly requested to direct the concerned SHO to register an FIR under appropriate provisions of law against respondents No.1 and 2 being Directors.”

The court, however, said that no criminal liability can be attributed to the employee of the charter service company as he was cheated by the directors and not paid salary from the last six months. The judge directed the police to probe this as well.