United Airlines will begin operating daily flights from Bengaluru to San Francisco

Passengers flying from India to San Francisco will be pleased to hear some good news. United Airlines, based in the United States, said on Thursday, October 14 that it will begin a daily flight between Bengaluru and San Francisco on May 28, 2022.

The airline went on to say that the new route complements its existing flights from New Delhi to Newark, Chicago, and San Francisco, as well as Mumbai to Newark.

The new route (service) is United's first-ever nonstop service between Bengaluru and the United States, according to the airline.

(Image Courtesy - United Cargo)

American will start nonstops between Delhi and New York from October 31, 2021. Delta is yet to resume India flights. While AI has the maximum nonstops between North America and India, United is the biggest US carrier in terms of services to India.

Notably, the services of United Airline from Bengaluru to San Francisco will be operated with Boeing 787-9 Dreamliner aircraft, featuring a total of 257 seats — 48 flat-bed seats in business class, 21 seats in premium-plus class and 188 seats in economy class.

“We are excited to announce the start date for our highly anticipated first-ever service between the two international technology hubs, Bengaluru and San Francisco. Our new flight strengthens our international route network, provides our customers from India with even greater travel choice and the possibility to connect via our San Francisco hub to other destinations across the Americas.”Marcel Fuchs, Managing Director, International Sales, United Airlines

United Airlines said it offers more flights between India and the US than any other US carrier.

The fresh flight announcements from United Airlines comes at a time when the scheduled international passenger services have been suspended in India since March 2020 due to the coronavirus pandemic. However, special international flights have been operating under the Vande Bharat Mission since May 2020 and bilateral “air bubble” arrangements with selected countries, including the US, since July 2020.

Nonstop Flights between USA and India:

Chicago (ORD) to Delhi (DEL) by Air IndiaNew York (JFK) to Delhi (DEL) by Air IndiaSan Francisco (SFO) to Delhi (DEL) by Air IndiaWashington (IAD) to Delhi (DEL) by Air IndiaNewark (EWR) to Mumbai (BOM) by Air IndiaChicago (ORD) to Hyderabad by Air India (new)SFO to Bengaluru (BLR) by Air India (new)Newark (EWR) to Delhi (DEL) by United AirlinesNewark (EWR) to Mumbai (BOM) by United AirlinesSan Francisco (SFO) to Delhi (DEL) by United AirlinesNew York (JFK) to Mumbai (BOM) by Delta AirlinesChicago to Delhi by United Airlines (December 2020)San Francisco to Bengaluru by United Airlines (2021)

(Image Courtesy - WISN)

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 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. It is also a founding member of the Star Alliance.

The DGCA has temporarily banned SpiceJet's licence for the carriage of 'hazardous commodities' due to alleged infractions. SpiceJet will not be allowed to transport dangerous products, including lithium-ion batteries, on either domestic or international flights during the 30-day suspension, according to the sources.

When contacted, a SpiceJet spokesperson did not directly mention the suspension.

The airline said there was a "minor issue" with a package being declared as a "non-dangerous goods" by a shipper, who has been blacklisted.

According to the Directorate General of Civil Aviation's (DGCA) rules, dangerous goods are articles or substances that are capable of posing a risk to health, safety, property or the environment.

"The DGCA has suspended SpiceJet's licence for dangerous goods for 30 days allegedly for violating norms involved in the handling of such cargo," one of the sources said.

As a consequence, the airline has been "barred" from carrying such cargo on its flights across the network, he said.

Director-General of Civil Aviation Arun Kumar was not reachable for comments.

"There was a minor issue with a package being declared as 'non-dangerous goods' by a shipper and the lapses were on the shipper's part. SpiceJet has taken preventive and corrective action as advised by the DGCA," the SpiceJet spokesperson said in a statement.

The last time Pratt & Whitney’s GatorWorks attempted to 3D-print a combustor for the miniature TJ-150 jet engine, the results were less than impressive-to say the least.

Actually, it was terriblesays Dave Stagney, senior director of P&W’s prototyping arm.

The maiden attempt had been a learning experience for the team who is now taking the whole additive process a notch higher- attempting to produce a TJ-150 turbine entirely out of 3D-printed parts.

We learned a lot from it. We need to create the opportunities for our engineers to learn, and not put ourselves in a situation where the stakes are so high that we have to be so conservative that we can’t take calculated risksStagney

FlightGlobal

For now, Gatorwork's main focus is on low-cost military engines such as the TJ-150, which is used to power small cruise missiles and not the conventional, ultra-reliable turbofan engines used on fighter jets or commercial planes.The company aims to cash in on the US Air Force’s (USAF’s) growing demand for low-cost cruise missiles, powered glide bombs and “attritable” unmanned air vehicles (UAVs). After years of acquiring high-end fighter jets with ginormous prices, like the Lockheed Martin F-35 stealth fighter, the USAF now wants to incline more towards inexpensive platforms.

Gatorworks, having being launched in mid 2018, relies heavily on digital technology such as model-based systems engineering software, and the agile development method-an iterative approach borrowed from the Silicon Valley software programming.

3D printing vs Subtractive manufacturing

Significant 3D printing forecast surges to $35.6 billion | Forbes

3D printing allows for faster manufacturing of components using digital designs. This makes it possible to furnish components with geometries , impossible to create with traditional mills and lathes.

P&W thinks it can consolidate the TJ-150’s number of parts from 400 to about 6

TJ-150 | PBS Aerospace

TJ-150 is a 150lb-thrust (0.667kN) turbine engine that powers the Raytheon Miniature Air-Launched Decoy, a low-cost cruise missile intended to confuse enemy air defence systems.It also powers the MBDA Spear air-to-surface missile, which is to be fielded on the UK Royal Navy’s carrier-based Lockheed Martin F-35B fleet.

3D printing an engine has its own set of advantages. Besides cutting the process costs in half, it also saves a considerable amount of time as opposed to when subcontracting the work to outside entities.

Right now, if we want to do an iteration, we’ve got hard tooling that’s about a 12-month lead time. If we can do additive, we can eliminate that lead time and print new configurations in a couple of weeksStagney

Furthermore, rotating parts are the most difficult because of the high stresses and dynamics those parts experience-he added.

If all goes well, the  3D-printed TJ-150 should be ready to roll by the end of the year.

David Stagney | GovCon wire

If it doesn’t work, well, we’ll do another (s)printStagney

COVER: Softpedia

For an undisclosed sum, Megha Engineering & Infrastructures Ltd (MEIL) has returned ownership of cash-strapped TruJet to its former owner Vankayalapati Umesh. On October 9, Umesh took over as Managing Director, even though the majority of TruJet's board of directors had left.

In an e-mail to the airline's staff, Umesh stated that Ireland-based turboprop aircraft lessor Elix Aviation Capital is interested in becoming an equity partner as well as leasing 10 aircraft, two of which are available immediately.

(Image Courtesy - Airways Magazine)

Turbo Megha Airways Private Limited was incorporated on March 14, 2013, with Vankayalapati Umesh as the promoter. In 2014, he sold a majority stake in the airline to Hyderabad-based Megha Engineering and Infrastructures Limited to fund their operations.

The carrier’s new MD confirmed to Business Line that he is in the process of restructuring the airline.

According to a report by Hindu Business Line, Vankayalapati Umesh said -

“I am at advanced stages of discussion with entities for institutional funding and to raise funds for the airline and I believe to be able to conclude the same in the next three months.While it impacted in a huge cash outflow for the parent company, MEIL realised that this was not part of its core business functions and wanted to handover the airline business to someone capable and keen on its safekeeping and continuous expansion.I am at advanced stages of discussion with entities for institutional funding and to raise funds for the airline and I believe to be able to conclude the same in the next three months.Our existing lessor, Elix Capital, is also keen on leasing 10 aircraft to us with two aircraft immediately. They also want to be equity partners in the airline and will bring in value by way of aircraft induction and their global relationship in the aviation industry.MEIL has put its faith and trust in me to run this airline and has transferred the company to me."Vankayalapati Umesh

A spokesman for MEIL declined to respond. A source close to MEIL's promoters, on the other hand, verified that the airline had been sold to Umesh.

Turbo has been looking for an investor for six months and has been unable to find one. Interups' Laxmi Prasad stated that he would invest in the company. However, he has yet to pay any money to the company. TruJet and US-based firm Interups Inc signed an agreement in April under which Interups committed to buying a 49% ownership in the company for an undisclosed sum. Although the agreement was viewed as a tremendous relief for the cash-strapped airline, Interups has yet to infuse the funds as agreed.

When BusinessLine contacted Prasad to ask if he was asked to leave, he maintained that he was still a part of the company. However, when asked if he had infused the agreed funds, he did not comment.

(Image Courtesy - MouthShut.com)

Elix Aviation Capital is backed by California-based asset management firm Oaktree Capital Group, and currently owns and manages a portfolio of 65 turboprop aircraft.

Trujet, according to the MD, has been operating for 4.5 years, expanding gradually until the pandemic hit and like all businesses globally and locally, the carrier was affected by the lockdown and the severity of Covid-19.

According to a source, TruJet will need INR 300 crore immediately to stay afloat.

Founded in 2013 and beginning operations in July 2015, TruJet (Turbo Megha Airways) is an Indian low-cost carrier based at Hyderabad Rajiv Gandhi International Airport. The carrier operates a route network primarily focusing on the country's central Andhra and Telangana regions, with destinations including Tirupati, Hyderabad, Aurangabad, Vijayawada and Rajahmundry. TruJet utilises a fleet of ATR-72 aircraft. The carrier is backed by Turbo Aviation, diversified Indian aircraft maintenance and ground handling company.

(Image Courtesy - Indica News)

However, like many airlines, TruJet also buckled under COVID-related losses to the point where it had to ground most of its fleet earlier this year and risk losing its flying license. As of now, out of the carrier’s seven ATR 72, only one is in active service.

Most of the funding was slotted for the airline’s expansion, with Interups Chairman Laxmi Prasad announcing a potential order of more than 100 Embraer E190s and Airbus A220s.

(With inputs from the Hindu Business Line)

Cover Image - India TV News

With festivities around the corner, and in what has come as a breather for most, the government has allowed all airlines to operate at 100% capacity from October 18. All restrictions imposed on airline operations during the covid-induced lock down have been removed. The "fare caps" however, still remain in place.Let's say for instance, a given airline has a schedule of 1000 flights per month pre-covid, and if the capacity was capped at 85%, that would mean the airline can now operate only 850 flights in a month. What that essentially means is that capacity fares have no relation to fare caps.

Recent developments

1.Highest passenger traffic in a year

In what can be termed as a first ever since the lockdown was first initiated in February of 2020, passenger traffic hit the "3 Lakh" mark when a whopping 3.14 lakh passengers flew domestic routes. The first week of October saw about 1.7 million passengers travelling which was a 10% surge from the previous month.Delhi and Mumbai- India's two largest airports have reopened terminals to further streamline the heavy flow of increased traffic.

The New Indian Express

The aviation industry is expected to witness a strong year-on-year growth of 45-50 per cent in domestic air passenger traffic and 80-85 per cent in international air passenger traffic during 2021-22ICRA

2. Elevated Load Factors

Business Standard

It is an indicator of the percentage of the available seating capacity that is filled with passengers. Ideally , a high load factor is preferred as it shows that an airline has sold most of its available seats.

the average load factor of six major airlines in August stood at 70.2% up from an average of 54% in JulyDGCA

3.Ban on international flights to be partially lifted

Getty Images

In a bid to boost the tourism sector, the government is rolling out free visas to the first 500,000 tourists and this would be applicable until March of next year.Furthermore, from October 15, India will issue tourist visas to those flying in by chartered flights, and tourist visas from November 15 to foreigners flying in by commercial flights.

4.Amended fare cap

With the current regulations in place, airlines can now set fares for travel beyond 15 days instead of 30.The move will supposedly allow airlines to roll out special discounted fares and promotional offers for the festive season, allowing in more cash flow.

5.Emergence of ultra-low-cost players

SaltSnap

"Akasa", which has very recently received the NOC from the Ministry of Civil Aviation, is scheduled to commence operations by summer of next year. With industry veterans such as former Jet Airways CEO Vinay Dube and ex-IndiGo president Aditya Ghosh onboard, Akasa is all set to go toe to toe with market leader IndiGo, and other low-cost carriers SpiceJet and Go First.

Ex Indigo CEO- Aditya Gosh | Reuters

With over 50% of the country's population being vaccinated, and the vaccination drive only gaining further momentum, the "load factor" is only expected to increase further.

With so many airlines stacking up one against the other, travellers now have a wide array of options to choose from. How the players balance between offering premium services and at the same time maintain operational standards, remains to be seen.Domestic travellers however, don't mind as long as it gets them from Point A to Point B.

As danger of a third wave still looms around, would it be safe to assume Indian Aviation is finally making a comeback?Drop in your thoughts below

COVER: Deccan Herald

BOC Aviation is a top-tier global aircraft operating and leasing company. Robert J Martin, Managing Director and Chief Executive Officer, has been personally involved with India since 1993.

He said on the sidelines of the 77th annual general meeting of the International Air Transport Association (IATA) in Boston that BOC Aviation is currently doing its research on setting up an office in GIFT City.

Robert J. Martin, Managing Director and Chief Executive Officer, BOC Aviation (Image Courtesy - Aviation International News)

Gujarat International Finance Tec-City (GIFT City) is an Under-construction business district near Ahmedabad in Gujarat, India. It is India’s first operational smart city and international financial services centre, which the Government of Gujarat promoted as a greenfield project, The city is located on the banks of the Sabarmati River and is around 12 km (7.5 mi) from Sardar Vallabhbhai Patel International Airport. The city is designed in such a way that residents can walk to work, and includes commercial and residential complexes.

“We will do the research and it is a matter of how long it takes under the government regulations,” he said.

BOC Aviation’s core business model is focused on purchasing new, fuel-efficient, in-demand aircraft at competitive prices, directly from aircraft manufacturers, and placing them on long-term operating leases, globally, and selling them to maintain a young fleet.

In India, BOC Aviation’s largest customer is Vistara. It has also done business with IndiGo and has a smaller exposure to SpiceJet and GoAir (now GoFirst). 

In an interview with Moneycontrol.com, Robert J. Martin said that the Cape Town Convention Protocols has helped in the process of registration of aircraft for India. He said, "We were involved in Cape Town Conventions very early on. Remember, now, with the setting up of the GIFT City in Gujarat, we are in favour of this."

So far, Indian airlines have been leasing planes from lessors in Ireland, Dubai and China, among others. Earlier in February 2021, to attract foreign aircraft lessors to set up shop in India, finance minister Nirmala Sitharaman, in her budget speech, had said that aircraft leasing companies operating at the GIFT City will be eligible for tax exemptions and other benefits.

When asked about looking to set up something at GIFT City, he responded that they may look up and are doing their research which probably goes on till next year. It is just the beginning.

When asked about leasing of aircraft in India and the leasing cost he said that they buy an aircraft into an entity in India and lease it to airlines in India. They need to check about the leasing costs. "We need to understand all the state and provincial tax laws," Mr Martin said.

Replying to the comparison of Indian Tax laws in GIFT City with those in Ireland where most of the aircraft are leased from, he said "the taxes are favourable but the key question is what will be the cost to fund the entity in GIFT City. Generally, when we lease an aircraft, we borrow our funding in US dollars in the international market. The question is: can we do the same in a vehicle in GIFT City? That is the kind of research we need to do."

GIFT City, Gujrat (Image Courtesy - DNA India)

Talking about the Indian market, he remarked "There is huge potential. The key question is how you can fund the vehicle in India, which is going to own the aircraft in India. When we do financing, for example, in Singapore, we raise our money in the international bond market. There are some difficulties with that in India. At the moment, the market is not liquid enough. That is something which we are looking at before we decide to come to India."

Replying about the controversies with some of the airlines with which they have leased aircraft and have had to take them to court, he said "In the leasing business, when you get to a point where you are not paid, what you would do is that you will take your aircraft back and lease them to another customer. Actually, we have been to court only once in India. That was a long time ago, in the early days of SpiceJet. In the end, we came to a settlement. The only other time people have generally been to court is when they have had difficulty in getting their aircraft out after they have terminated their leases. But it is a better situation today than 10 years ago."

When asked about why the lease deeds are all signed abroad when Indian airlines decide to acquire an aircraft they are not signed in India. He replied that leasing is normally based on either English law or New York law. So, it is perfectly normal for the leasing business to sign deals abroad.

(Image Courtesy - Reuters)

BOC Aviation Limited is an aviation leasing unit headquartered in Singapore, with regional offices in London, UK, Dublin, Ireland, Tianjin, China and New York, USA. The company was wholly owned by the Bank of China.

The BOC Aviation portfolio is one of the youngest in the leasing business with an average owned aircraft age of under four years. The fleet is primarily based on the popular Airbus A320 family and Boeing Next-Generation 737 series as well as the Embraer 190/195 family. It also includes select widebody types, such as the Airbus A330 and Boeing 777. Besides direct orders with manufacturers, BOC Aviation also grows its fleet via purchase and leasebacks with airlines. They offer a wide range of lease management and aircraft finance services, both directly and through its indirect parent company Bank of China. 

(With Inputs from the interview taken by Mr Ashwini Phadnis for moneycontrol.com)