The new terminal of Chennai International Airport to be completed by 2024

Radhika Bansal

10 Dec 2022

Civil Aviation Minister Jyotiraditya Scindia on Thursday, December 8 said work on the new terminal of the Chennai International Airport will be completed by 2024 and subsequently, it will be inaugurated.

Speaking in the Lok Sabha, Scindia also said a new site, Parandur, has been chosen for Chennai's second airport -- a greenfield one -- out of the four sites offered by the Tamil Nadu government.

"We have a very aggressive plan for the Chennai airport. We are spending almost INR 2,895 crore for the Chennai airport expansion plan. The probable time of completion of the work is somewhere in 2024. As soon as that is completed, we will inaugurate it," he said during Question Hour.

The new terminal of Chennai International Airport to be completed by 2024

The Tamil Nadu government has also instructed the Airport Authority of India (AAI) to draft a revised proposal for acquiring land on the other side of the Adyar river for the expansion of Chennai airport.

AAI had earlier asked the state government to acquire 306 acres for the construction of an international terminal and cargo terminal on the other side of the Adyar river.

The AAI and the Tamil Nadu Industrial Development Corporation (TIDCO) undertook a joint survey of six land parcels in and around the Cowl Bazaar region and concluded that the acquisition cost was too expensive.

TIDCO directed AAI to develop a new plan because, in addition to the huge land expenses, the acquisition of the land will result in the displacement of many families.

Chennai International Airport, one of India's largest airports, is now operating on 1,317 acres of land, the smallest in comparison to other major airports.

“We are now looking at acquiring 158 acres of uninhabitable land so that the cost of acquisition is less. Only those land which is uninhabitable will be acquired,” said airport director Sharad Kumar.

Chennai International Airport, one of India's largest airports, is now operating on 1,317 acres of land, the smallest in comparison to other major airports. Every year, the airport serves 22 million passengers.

Following further expansion, the airport will require additional apron bays for aircraft to handle a projected 55 million passengers. The cargo infrastructure would be changed to make room for the additional apron bays.

The airport's second phase of modernisation is set to be completed by December 2024.

ALSO READ - Chennai’s second airport to be at Parandur

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Large-scale air demonstration led by Airbus, including fighters, helicopter, and drones makes its debut in Europe

Prashant-prabhakar

10 Dec 2022

Two fighter jets, a helicopter, five unmanned remote carriers, and Europe's first large-scale multi-domain flying demonstration were conducted by Airbus and successfully completed a mission that may well occur in real conditions.

The project to construct a flying remote carrier (RC) demonstrator for the Future Combat Air System (FCAS) will now proceed to the following stage, which will further pave the way for FCAS in the upcoming years.

In the demonstration, a Learjet 35 from Airbus subsidiary GFD served as a stand-in for a fighter, with the crew controlling five modified Airbus Do-DT25 drones from remote carriers. Two of them were equipped with Electronic Support Measures (ESM) sensors from MBDA to identify the imaginary rogue warlord's ground air missile positions. Electro Optical (EO) cameras aboard the remaining three RCs were used to visually record and confirm the locations of the air defenses.

Airbus

Through a networking data link from Patria, all assets were linked. Additionally, one simulated fighter functioning as a command and control aircraft was displayed on the screens in the visitor tent where the contractor officials from the German and Finnish armed forces followed the demo.

Ground soldiers asked for close air support from a forward Joint Terminal Attack Controller (JTAC) after the air defense was taken down in order to assist them in capturing the fictitious rogue warlord.

An Airbus H145M helicopter arrived right away, assisting the squad in completing their objective. The H145M worked in tandem with one of the EO RCs, keeping a watch on the area and supplying the special forces with reconnaissance information. The helicopter crew commanded the RC directly from the cockpit while the video stream of the Do-DT25 was directly sent to the H145M. The JTAC coordinated the attack by sending a digital emergency notification to the helicopter (9-liner request) and partially taking over one EO RC's command and control to evaluate the situation.

Do DT25 drone | Representative | SOURCE

With the Multi-Domain Flight Demo, or MDFD, we demonstrated for the first time in Europe  how manned-unmanned teaming capabilities and functionalities with up to ten connected  assets work in a real-life inspired scenario and under near operational conditions. This is yet another example of how we  push boundaries and pioneer technologies so that our customers can fulfill their missions:  saving lives and ensuring a better future for us all- said Jean Brice Dumont, Head of Military Air Systems at Airbus

Remote carriers of various shapes and sizes are essential components of FCAS, where they will function with the manned New Generation Fighter and the Eurofighter in a networked combat cloud environment.

Conducting such collaborative engagements will require high levels of autonomy with only little direct and indirect human control- explains Airbus project manager Thomas Gottmann

RCs operate under the control of manned fighter aircraft and offer improved pilot protection while expanding the operational envelope and their capacity to intervene in dangerous circumstances.

The German Bundeswehr, the Finnish Defense Forces, and industry partners including the missile manufacturer MBDA Germany, the provider of compact airborne networking data links Patria, the startup company for autonomy and mission technology HAT.tec, and the maker of Robonic's drone launch system were all involved in the MDFD, which was headed by Airbus.

SOURCE: AIRBUS

COVER: AIRBUS

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Several flights at the Chennai airport cancelled or rescheduled due to Cyclone Mandous

Radhika Bansal

10 Dec 2022

Owing to Cyclone Mandous, which is likely to bring heavy rainfall to parts of Chennai, and many areas in Tamil Nadu on Friday, December 9, many flights at the Chennai airport have been cancelled or rescheduled. Chennai Airport has warned passengers that multiple flights can be cancelled on December 9 due to heavy rainfall and a storm in the Bay of Bengal. 

“Kindly take note of the Flight cancellations at Chennai Intl Airport on 09.12.2022 due to adverse weather conditions forecasted. Passengers are requested to check with the concerned airline(s) for further updates," the Chennai airport official handle tweeted.

https://twitter.com/aaichnairport/status/1601129125854744576

A total of 13 flights have been cancelled so far, an ANI report stated. Earlier in the day, India Meteorological Department (IMD) said that Cyclone 'Mandous' has hit the southern Indian states of Tamil Nadu and Puducherry coasts and is likely to cause severe damage. 

The flights which were scheduled to arrive and depart were Tuticorin, Kadapa, Bengaluru, Mysuru, Madurai, Vijayawada, Mangaluru, Calicut, Tiruchirappalli, Hubli, and Kannur.

Several flights at the Chennai airport were cancelled or rescheduled due to Cyclone Mandous

The officials also advised the general masses to check with the concerned airlines given the flights affected due to the extreme weather conditions. Meanwhile, IMD also warned of traffic disruptions to be caused by heavy rainfall and localised flooding.

All three states, Tamil Nadu, Puducherry, and Andhra Pradesh, have been preparing themselves for the storm. The authorities are on alert and necessary precautionary measures are in place, as per the government reports.

The National Disaster Relief Force has been deployed as well. In Chennai, around 169 relief camps have been set up. The city civic body has prepared 805 motor pumps to drain stagnant water from low-lying areas.

The officials also advised the general masses to check with the concerned airlines given the flights affected due to the extreme weather conditions.

Puducherry CM N Rangasamy took stock of the preparations as Cyclone Mandous intensified. The cyclone is scheduled to cross the coast between Puducherry and Sriharikota around midnight today to early hours of December 10.

As per IMD, Cyclone Mandous will cross Mamallapuram, near Chennai, with a wind speed of 65-75 kmph between this midnight and early Saturday, December 10. The 'severe cyclonic storm' is projected to weaken by Saturday, December 10 afternoon.

Extremely heavy to heavy rainfall is predicted in parts of Chengalpattu, Villupuram, Kancheepuram, and Puducherry. The weather office has issued a red alert in 13 districts in the state. The cyclone is feared to cause the uprooting of trees, consequent power cuts, and inundation. 

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Air India likely to order up to 150 Boeing B737 Max jets

Radhika Bansal

10 Dec 2022

Air India is close to signing an order with Boeing Co to acquire up to 150 B737 Max jets, the Economic Times reported on Saturday, December 10 citing sources.

The Tata Group-owned Indian carrier will likely place a firm order for 50 737 Max planes with an option to pick up as many as 150, the ET report said.

Industry sources had said in July that Air India was moving closer to a decision on a mega order worth USD 50 billion at list prices to be split between Airbus and Boeing, which included up to 300 narrowbody and 70 widebody jets.

ALSO READ - Boeing offers 737 MAX aircraft to Air India

Air India likely to order up to 150 Boeing B737 Max jets

Air India favoured the American plane maker for the order as it promised to deliver 50 aircraft by March 2023. The planes were initially meant to be delivered to China Southern, which had placed an order and was supposed to take immediate delivery of 103 aircraft, the report added. The Air India-Boeing deal will likely be finalised in the next few days.

ALSO READ - Boeing looking for new buyers for Chinese rejected B737 MAXs

The report added that Airbus may still get to fulfil orders from Air India as the Tata Group airline is likely to buy more planes amid aggressive expansion plans. Boeing had the edge over Airbus as the American manufacturer promised to deliver 50 B737 Max planes as soon as early next year, while the French company could not promise deliveries of A320 Neo until 2025.

The report further added that Boeing wasn’t able to complete the Chinese order as the country’s air safety and aviation regulator hasn’t re-certified the plane after grounding it in 2019 following two crashes.

The planes were initially meant to be delivered to China Southern, which had placed an order and was supposed to take immediate delivery of 103 aircraft

The reported order would be a win for Boeing, which said it was looking to boost its capacity in India to keep pace with rising demand in the world's fastest-growing primary aviation market.

ALSO READ - Rakesh Jhunjhunwala’s Akasa Air signs deal for 72 Boeing 737 Max planes

Boeing's last mega order in India came in 2021 when low-cost airline Akasa Air struck a deal to buy 72 737 MAX jets, valued at nearly USD 9 billion at list prices.

Indian skies are dominated by low-cost carriers including IndiGo, SpiceJet and AirAsia India, with the majority operating Airbus narrowbody planes. SpiceJet, Boeing's biggest customer in India, has 155 MAX planes on order.

Boeing declined to comment, saying it would "defer to Air India" for a response. Air India did not respond to a request for comment.

Under new management helmed by CEO Cambell Wilson, Air India has unveiled major expansion plans, which involve winning a 30% market share both on domestic and international routes in the next five years.

Air India has unveiled major expansion plans, which involve winning a 30% market share both on domestic and international routes in the next five years.

ALSO READ - Air India to undergo a brand makeover, hires London-based consultancy firm

The airline recently roped in British brand and design consultancy firm Futurebrands to rework the Tata Group airline’s branding strategy. The airline may also be considering a new mascot as the 76-year-old ‘Maharajah’ is regarded by some within the company as ‘outdated’, according to reports.

ALSO READ - Air India to refurbish its wide-body aircraft interiors by investing USD 400 million

The airline also hired former MakeMyTrip executive Sunil Suresh as its chief marketing officer, and Colin Neubronner, who conceptualised the branding of Singapore Airlines and Jet Airways, to its new brand-building team.

The rebranding exercise makes sense as Tatas looks to merge its four airlines into two companies. Tata Sons plan to merge Vistara with Air India to create a full-service airline by 2024, and is in the middle of merging AirAsia India and Air India Express to create a low-cost airline.

(With Inputs from The Economic Times)

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Business Aviation in India: Unable to Cross the Chasm

Radhika Bansal

18 Dec 2022

The number of Business Jets in India grew 500% between 2006-2012. With more than 100 aeroplanes delivered to India within a short period, most Business aircraft manufacturers were bullish on the Indian market and opened offices in India at that time. Most reports predicted growth between 10-12% for the next 20 years.

20% of the Private Aviation in Asia Pacific includes destinations in India, which is more than China, Japan and Hong Kong put together. The Global Pvt Air Charter Business valued at $28B is expected to grow at about 5% CAGR with the maximum growth coming from the APAC region estimated at over 7%. The APAC market is likely to cross $7B by 2023. 

By that assessment, India should have more than 330 business aeroplanes in India. Contrary to the expectations today there are less than 190 Business jets in India with an average Aeroplane age of more than 15 years. 

As an estimate, nearly 18% of existing on-demand charter requests remain unfulfilled and another 15% are a compromise in terms ofclass of aircraft or service.

This essentially implies that either the demand was hugely overestimated while making the projections or Business Aviation has not been able to organise itself into a growth-oriented and competitive industry as part of the global ecosystem. 

Demand

The growth of UHNWI (Ultra high-net-worth individuals) in India is growing steadily above 12%. As a region, Asia is looking at a 33% increase in UHNWI between 2021-2026. As an estimate, nearly 18% of existing on-demand charter requests remain unfulfilled and another 15% are a compromise in terms ofclass of aircraft or service.

Amongst Asians, Indians in particular are spending more on experiences than ever before but private air travel has not been able to find a place in their lifestyle bucket list yet. Putting a number to the untapped domestic market would only be hypothetical but a comparison of markets with equivalent income as compared to the USA and Europe suggests that India has an untapped demand of around 15000-20000 people who can afford private aviation at least partially.

The Number of Business Jets in India grew 500% between 2006-2012.

At a very conservative figure of 25 hours per year of flying and only 50% penetration in the potential market, this is nearly 2,25,000 hours of flying in a year. This is purely the business aviation market excluding Medical Evacuation. But this market is different from the traditional private air travel market in India. For this segment, it's not only about status but about real convenience of time, experience and price.

Supply

With the present fleet in India and its utilisation rate, the best that can be produced is less than 50% of the potential market demand. What is actually on offer is even less. The present average fleet age of business jets offered for Private Charters in India is above 15 years.

Compare this with an average age of under 6 years for globally established players such as NetJets and Vista jet and others in Europe. This is also one of the reasons for poor utilisation rate in that the maintenance requirements and downtime rise exponentially with age above 12-13 years.

Particularly, in the light and mid-jet segment obsolescence management is another challenge. While in the bigger jets depreciation is high, in the smaller ones it is the obsolescence that has to be managed. A high fleet age suggests that business has not been lucrative enough for the businesses to invest in newer aeroplanes and operators have been too occupied managing the plane and cash flow rather than managing the lifecycle cost of the machine. This is also partly due to an inadequate understanding of Life Cycle management.

The demand-supply gap is nearly 30% in the existing market and over 100% in the potential market with supply being way short of what it should be. The current ownership pattern in India is also not conducive for operators to make commitments in advance. This further kills steady supply. Since long-term order books are not certain, operators tend to focus on cash flow rather than any long-term strategy. Ultimately, the whole system revolves around uncertain supply thereby not allowing a growth-oriented business plan. 

Distribution

While the supply has its challenges, the distribution of the service has remained one of the most unregulated and inaccessible aspects of private air travel in India. While the operators are heavily regulated, the air charter brokers have no requirements at all. In India to be a train ticket booking agent requires more regulatory approvals than an air charter broker.

Globally air charter brokers fulfil an important role in the distribution chain which involves legal, contractual and experience fulfilment. There are commercial rating agencies that make sure that the industry runs as per laid down standards. In India, the distribution chain of private air travel is completely inaccessible to the potential market.

Globally air charter brokers fulfil an important role in the distribution chain which involves legal, contractual and experience fulfilment.

In the country that boasts as the largest supplier of IT services globally, private air travel bookings are done on Whatsapp in over 140 Whatsapp groups. Multiple levels of the brokerage with little transparency coupled with supply gaps drive the prices exponentially. With this kind of distribution ecosystem, it is not possible to tap the potential private air travel market which is price sensitive and demands a high quality of service and transparency. Unless this changes nothing else can work.

What can be done?

Step 1 - “Make it Accessible and Affordable”

Every problem requires some short-term and some long-term measures. Even in the existing market, there is a supply deficit of over 20%. Fulfilling this deficit should be the first step in the short term. The average flying per aeroplane of Global heavyweights is over 1000 hrs. Flying over 1000 hours covers the depreciation partially and allows timely addition and replacement of the machine to keep the business growing.

In India, the average flying is under 600 hrs in the Jet Category. An increase of 20-25% over the existing flying hours can partially fulfil the existing demand-supply gap. This is achievable by small measures such as a more organised and transparent distribution mechanism and collaboration betweenoperators with the same fleet. A tech-enabled distribution can easily increase aeroplane utilisation.

An increase of 20-25% over the existing flying hours can partially fulfil the existing demand-supply gap.

Due to the aeroplane ownership structure in India, owner requirements would always limit the utilisation rate of most planes but a 20-25% increase is always achievable with the same serviceability levels but with collaboration between operators of the same type and tech enablement of distribution. An organised distribution which allows the sale of Empty Legs or minimises/avoids two-way pricing not only makes the service more accessible but also affordable in the on-demand market.

Step 2 - “Increase Capacity and Market Penetration”

In the long term, drastically improving the average age and addition of aeroplanes would allow penetration into the untapped market. In this context, a fractional ownership model that offers a very low fraction with assured flying would increase the market size substantially. The residual hours can then be sold as jet cards or on demand. The fractional ownership model is heavily dependent on scale and sale of residual hours via Jet Cards or in the on-demand market.

Although prior attempts for fractional ownership in different forms have been made, they didn’t get much success and the planes acquired then are still in service after 15 years. A small size of the minimum fraction with a small commitment period would allow a larger portion of the market to adopt private travel due to low-risk exposure. The low fraction would allow a substantial supply to be released to the on-demand market thereby facilitating long-term sales. 

Essentially, the future of Business Aviation Growth in India is critically dependent on a single factor - 'The ability of the Industry to Organise itself’. 

For a Fleet of 5-6 Light jets per aircraft flying 1000 hrs a year the effective travel price for a Regular Fractional Owner with 200 hrs of commitment every year can be as low as just 4 times the Business Class travel (with at least 30% seat occupancy - not on seat sharing) which at present is more than 16 times. That is almost a 75% reduction in price point.

When an Indian Business Model can execute this - India would have arrived on the scene. Achieving this is not easy. Flying more than 1000 hrs per plane per year requires an organised business and an organised ecosystem that is transparent and competitive. Essentially, the future of Business Aviation Growth in India is critically dependent on a single factor - 'The ability of the Industry to Organise itself’. 

About Insta Charter

Insta Charter is a tech platform created by Captain Abhishek Sinha for air charter operators and brokers to find relevant air charter businesses. Operators post the availability of their planes and air charter brokers post their trip requirements. Upon finding a relevant match on the platform engine they can have direct conversations with one another to finalize the deal.

'Captain’ as he is called popularly, Captain Abhishek Sinha is a commercial pilot in charter operations. He has had a deep association with technology since his Experimental Test Pilot days in the Air Force. He has flown over 22 different types of aircraft and has the coding abilities to turn that knowledge into reliable software with minimal assistance.

Captain Abhishek Sinha

Captain Sinha saw the adverse implications of the unorganized and inefficient business aviation industry and thus he created a platform that can make air charter deals easier. On the platform air charter operators can enhance the utilization of their aircraft's flying hours. On the other hand, air charter brokers can find the best air charter deals for their end clients at a great price.

A revolution is long-awaited to give a quick spin to the air charter industry in India and making it a growth-oriented business is the need of the hour.

Insta Charter conducted a Round Table Event on November 24 2022 in New Delhi to discuss the Global Trends of Business Aviation in the Post-pandemic Era.

Captain Sinha with the speakers of the event

Insta Charter is an app-based Business Aviation Marketplace that helps to connect Operators and Brokers at the global level in the Business Charter, Medical Evacuation and Air Cargo Industry directly and in real-time. 

The first-of-its-kind B2B application from India is based on a proprietary search & match engine that connects the seller & buyer based on relevance. It also assists both sides in arriving at a deal price based on their behaviour. 

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IndiGo to operate 168 weekly flights from New Goa International Airport

Radhika Bansal

09 Dec 2022

No-frills carrier IndiGo said on Thursday, December 8 that it would operate 168 weekly flights to eight domestic destinations from the New Goa International Airport.

Prime Minister Narendra Modi will inaugurate the second international airport in the state on December 11. The airport will commence commercial operations on January 5 next year.

ALSO READ - Mopa International airport to be inaugurated by the PM in December

The present airport at Dabolim in South Goa will remain active, and IndiGo will continue its existing operations there. Located about 35 km from Goa's capital Panjim, the newly built is situated in Mopa village in North Goa, at a well-connected location for travellers to commute. Tourists can reach the airport by taxi services, railway and bus services.

https://twitter.com/IndiGo6E/status/1600868792514613253

Twelve daily and a total of 168 weekly, new flights to and from the New Goa International Airport at Mopa in North Goa from January 5 will be IndiGo's largest ever-new station launch and will immediately connect the new facility to eight cities across India.

The budget carrier will operate 168 weekly flights and will connect major cities like Mumbai, Pune, Delhi, Bengaluru, Ahmedabad, Hyderabad, Chennai and Jaipur. Besides improving direct connectivity to the state, the launch of the new flight services is also aimed at catering to the increasing demand.

IndiGo to operate 168 weekly flights from New Goa International Airport

This will be IndiGo’s largest-ever new station launch and will immediately connect New Goa International Airport to 8 cities across India. These new flights are being introduced to cater to the increasing demand and will improve direct connectivity to North Goa.

Residents of Goa will also be able to utilise these new services to fly directly to many large cities across India and further connect to over 100 destinations on the carrier's network.

"We are very excited to announce our largest ever new station launch with new direct connections from the New Goa International Airport in Mopa, North Goa. It’s momentous for us at IndiGo to have such a massive opening, and it speaks of our ambition and ability to provide connectivity to our customers and the nation in the best possible way."

Pieter Elbers, Chief Executive Officer, IndiGo

The foundation stone for Goa’s latest airport was laid in 2016, and it has been constructed for INR 30 billion. India’s aviation regulator, the DGCA, conducted the first test flight in September when an IndiGo A320 landed from Mumbai.

ALSO READ - First test flight conducted at Goa’s new Mopa International Airport

The airport was conceived in the 1990s but took all these years to become a reality. At present, the Dabolim airport handles all domestic and international flights to and from Goa and is operated by the Airports Authority of India as a civil enclave in an Indian Navy naval airbase.

ALSO READ - NIIF and GMR Airports collaborate to invest INR 631 billion in 3 greenfield airports

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