Vistara announces direct flights between Mumbai and Abu Dhabi

Vistara airlines on Wednesday, August 24 introduced that it’ll start day-by-day continuous flights between Mumbai and Abu Dhabi from October 1. Abu Dhabi will be the 12th overseas destination of Vistara.

ALSO READ - Vistara plans to expand its hub to Mumbai

The airline, a joint venture between Tata Group and Singapore Airlines will operate daily flights between the two cities using its A320neo aircraft.

https://twitter.com/airvistara/status/1562339661649182721

According to a statement, the ticket price will be Rs 17,749 for the economy, Rs 22,949 for the premium economy and Rs 45,949 for the business class. With the commencement of flights on this route, the relations between the two countries will be strengthened.

"We are delighted to expand our presence in the UAE, with a second Emirate, and offer the choice of flying India’s best airline on one of the busiest international routes from India. We are confident that greater connectivity between Mumbai and Abu Dhabi will complement the growing trade and tourism between the two countries. We are certain that customers from India and the UAE will appreciate experiencing our award-winning product and services on the route."Vinod Kannan, Chief Executive Officer, Vistara

ALSO READ - Vistara CEO on B787 aircraft leasing, airfare hike and fare caps at IATA AGM

Vistara has a fleet of 53 airplane, together with 41 Airbus A320, 5 Airbus A321 neo, 5 Boeing 737-800NG and two Boeing 787-9 Dreamliners. Out of these, two B787-9 and one A320 neo aircraft have been purchased and the rest are on lease.

ALSO READ - Vistara leases B787 Dreamliner to increase international flights operations

For Mumbai-Abu Dhabi direct flights, Vistara will use the A320 neo aircraft for the services.

The A320 neo aircraft that Vistara has been adding to its fleet comes with higher range capability (77 tonnes of maximum take-off weight), enabling the airline to fly longer regional international routes without payload restrictions.

Vistara, India’s finest full-service carrier, is on an expansion spree of its International Routes. The airline recently emerged as the second largest domestic airline by market share, and the company is celebrating the achievement. The airline crossed the 1 million domestic passengers mark in July for the first time.

A combat broke out between passengers and airport workers at Ahmedabad’s Sardar Vallabhbhai Patel Worldwide Airport over the delay of a SpiceJet plane for eight hours on Wednesday, August 24.

Later, security personnel and senior airport officials were called and they pacified the situation. All passengers left the airport on a later flight.

Flight from Ahmedabad to Varanasi delayed for 8 hours.

The SpiceJet flight SG0354 which was scheduled to depart at 10.30 am, but was rescheduled after 3 pm due to NOTAM. However, due to a network issue (congestion at the airport), it got delayed further and finally, it took off at around 7 pm for Varanasi.

According to sources in the Directorate General of Civil Aviation, the flight was delayed due to a ‘Network Issue’.

A source at Ahmedabad airport informed that the main runway of the airport was closed for maintenance between 11 am to 3 pm. Regarding it, NOTAM (Notice to Airmen) was issued to pilots.

The main runway at Ahmedabad airport was closed for maintenance between 11 a.m. and 3 p.m.

NOTAM or Notice to Airmen are notices distributed by means of telecommunication containing information concerning the establishment, condition or change in any aeronautical facility, service, procedure or hazard, the timely knowledge of which is essential to personnel concerned with flight operations.

A senior DGCA official stated that they were aware of the situation and that in such cases, passengers must be compensated if they request for it, because the rule requires it.

ALSO READ - Spicejet looking for a “knight in shining armour” to help with financial distress

The Uttarakhand government has urged the Central government for an airport at Chaukhatia near Bharadisen of the state, State Chief Minister Pushkar Singh Dhami informed.

His remarks came during a conversation with ANI after the 23rd Central Zonal Council Meeting chaired by Union Home Minister Amit Shah in Bhopal concluded.

He expressed gratitude to Prime Minister Narendra Modi for increasing the capacity of Dehradun airport. “Apart from the expansion of Pantnagar and Pithoragarh airports in the state, the airport is to be expanded at Gauchar and Chinyalisaud so that Chardham Yatra can be facilitated,” he said.

Uttarakhand CM wants an airport in Chaukhatia & fixed-wing air connectivity in Pithoragarh

Uttarakhand has 5 airports apart from Jolly Grant Airport in Dehradun. Gauchar Airport, Bharkot Airport (not operational for commercial flights), Naini Saini Airport (Pithoragarh airport), and Pantnagar Airport.

Jolly Grant airport in Dehradun is the primary airport in Uttarakhand where the majority of domestic flights from the country arrive. Pant Nagar airport is located in the Kumaon region of Uttarakhand. Other smaller airfields in Uttarakhand are situated in Gauchar, Bharkot as well as Naini Saini airport in the Pithoragarh district.

Dehradun Airport's commercial operations began on 30 March 2008, after a runway extension to accommodate larger aircraft. A new terminal building was inaugurated in February 2009. The current passenger terminal was inaugurated in October 2021. 

Dehradun Airport's commercial operations began on 30 March 2008, after a runway extension to accommodate larger aircraft

Located 20 km from Rishikesh, and 35 km from Haridwar, the airport Dehradun Airport is the 30th busiest airport in India, with over 1 million annual passengers. It is also known as the Air Gateway of Garhwal and plays an important role in the tourism of Uttarakhand.

Fixed-wing air connectivity in Pithoragarh

Uttarakhand Chief Minister Pushkar Singh Dhami emphasised the need for fixed-wing aircraft connectivity with the state's Pithoragarh town during a meeting with Union Civil Aviation Minister Jyotiraditya Scindia in the national capital.

He discussed in detail the issue of air connectivity in the state. Currently, the process of selection of airlines for three air routes - Pithoragarh-Pantnagar, Pithoragarh-Hindon and Pithoragarh-Dehradun is in progress under the Regional Connectivity Scheme.

https://twitter.com/pushkardhami/status/1562093092387586049

According to an official statement from CM Dhami's office, Scindia has directed the officers of his ministry that by September 30 work order should be issued to the airlines in this regard at the level of the Civil Aviation Ministry so that further action can be taken to establish the connectivity of Pithoragarh.

The Chief Minister said that the state government has proposed that considering the strategic importance of Naini Saini Airport, it should be upgraded from 2B to 3C and handed over to the Airport Authority of India (AAI) for independent management.

Naini Saini Airport should be upgraded from 2B to 3C and handed over to the Airport Authority of India (AAI) for independent management.

It was decided on this subject that the AAI and the government of Uttarakhand will prepare the service conditions of the MoU without delay so that an early decision can be taken in this regard. CM Dhami requested to direct Pawan Hans for a smooth operation of the heli-service to Pithoragarh under the Regional Connectivity Scheme and to connect Almora with the heli-service.

On this, Scindia directed the officers of the Ministry that action should be taken regarding regular service from the Ministry of Civil Aviation about providing air service of Pawan Hans every day from Friday, August 26.

Dhami also said, "to improve the air connectivity of Kumaon, a green field airport is proposed at Pantnagar." He requested to conduct an OLS survey of the new alignment proposed by the State Government for the expansion of Pantnagar Airport.

Dhami also said, "to improve the air connectivity of Kumaon, a green field airport is proposed at Pantnagar."

In this regard, the Union Minister said, "By November 30, instructions have been given to the Ministry of Civil Aviation for the OLS survey related to the project, along with instructions to prepare the DPRs of two small airports Gauchar and Chinyalisaud."

Along with Dehradun, the Chief Minister expected the Union minister to make Pantnagar airport an international airport.

On this occasion, Chairman of Airport Authority of India Sanjeev Kumar, Additional Secretary Civil Aviation of the Government of India Usha Padi, Secretary to Chief Minister Shailesh Bagoli, and Secretary Civil Aviation Dilip Jawalkar were also present.

Financially troubled Indian carrier SpiceJet Ltd. is open to investment from external parties, including other airlines, as it seeks to raise INR 2000 crore (USD 250 million), Chairman Ajay Singh told reporters in New Delhi on Tuesday, August 23.

Mr Singh declined to say what other carriers SpiceJet may be in discussions with but indicated an equity stake sale may be one option.

The shareholders of SpiceJet, which is a listed company, have approved fundraising of INR 1,500 to INR 2,000 crore, and some of the amounts have already been raised, Mr Singh said.

Spicejet looking for a "knight in shining armour" to help with financial distress

ALSO READ - SpiceJet in active discussion with a Middle Eastern carrier for a possible stake sale

The airline had earlier this month said it was “in discussions with various investors (including a Middle East carrier and an Indian conglomerate) to secure sustainable financing.”

SpiceJet's financial health worsened after Covid decimated air travel globally. The airline has suffered three straight years of losses while its market share has plunged to fifth from second largest.

In late 2021, the airline had cash and cash equivalents of just INR 72.9 crore compared with total debt of INR 9,750 crore. 

ALSO READ - Amidst ongoing court cases, SpiceJet posts net profit for Q3

The shareholders of SpiceJet, which is a listed company, have approved fundraising of INR 1,500 to INR 2,000 crore, and some of the amounts have already been raised.

In the October-December quarter of FY22, the airline had reported a net profit of INR 23.28 crore, as against a loss of INR 57 crore in the corresponding quarter of the previous fiscal. The revenue climbed to INR 2,259 crore, marking a jump of 34% as against INR 1,686 crore clocked in the preceding quarter.

ALSO READ - DGCA orders SpiceJet to operate only 50% of approved flights

In addition to a deteriorating balance sheet, SpiceJet is under scrutiny from authorities for reporting several mid-air malfunctions. The incidents have prompted India's aviation regulator to restrict the number of seats SpiceJet can sell at 50% for eight weeks.

The budget carrier is also tapping a government program that extends emergency credit lines to businesses hit by the pandemic, Singh said.

In 2015, Ajay Singh said the airline had been approached by foreign carriers seeking to purchase a stake.

ALSO READ - Cash-strapped SpiceJet plans to take delivery of 7 Boeing 737 Max

The no-frills airline currently has 60 operational aircraft and is also expecting Boeing to resume delivery of the 737 Max aircraft in October. The company will also raise capital via the sale and leaseback of at least seven additional Boeing Co. 737 Max aircraft this year, he said. 

"SpiceJet is doing its utmost to work through the stress we have faced," Mr Singh said. "We will do everything in our power to make sure SpiceJet remains a strong player."

It's not the first time SpiceJet has flagged third-party interest. In 2019, Mr Singh said SpiceJet had received several proposals to buy into the company but was only willing to evaluate those that were strategic. And in 2015, Ajay Singh said the airline had been approached by foreign carriers seeking to purchase a stake.

In late 2021, the airline had cash and cash equivalents of just INR 72.9 crore compared with total debt of INR 9,750 crore. 

Meanwhile, SpiceJet has also been trying to monetise its freighter business, SpiceXpress. People aware of the development said that while shareholders had approved the plan, the airline was yet to receive clearance from creditors to separate the business.

Recently, three Indian banks internally categorised loans to SpiceJet as being at "high risk" though the airline has not defaulted.

IDFC First Bank, Yes Bank and Indian Bank are concerned about SpiceJet's cash flows and have held talks with the carrier seeking assurances as it has been behind on payments to some aircraft lessors. 

SpiceJet has also applied for INR 280 crore loans under the Emergency Credit Line Guarantee Scheme.

Singh holds around 60% of the airline, of which 44.24% is pledged with lenders. Based on its Tuesday, August 23 closing share price of INR 46.25 on the BSE, SpiceJet's market cap was INR 2,783 crore.

SpiceJet has also applied for INR 280 crore loans under the Emergency Credit Line Guarantee Scheme.

The SpiceJet board is scheduled to meet on August 31 to consider and approve the financial results for the fourth quarter of FY22 and the first quarter of this fiscal, according to a regulatory filing.

"This is to inform you that meeting of the board of directors of the company will be held on Wednesday, the 31st day of August, 2022, inter-alia, to consider and approve: The audited standalone and consolidated financial results of the Company for the fourth quarter and financial year ended March 31, 2022; and the unaudited standalone and consolidated financial results for the first quarter ended June 30, 2022.The trading window for dealing in securities of the company shall remain closed for the designated persons till September 2, 2022, in view of the declaration of quarterly results."SpiceJet to Stock Exchanges

ALSO READ - SpiceJet under attack by ransomware; morning flights affected

SpiceJet has drawn questions over the inordinate delay in the release of Q4 FY22 results. The company had, on May 27, said a ransomware attack on IT systems has affected its audit process, and due to this, the results have been delayed.

Civil Aviation Minister Jyotiraditya Scindia said on Tuesday, August 23 that India needed to develop an airport which would be a global hub for international flights.

More wide-body aircraft, anchor airlines at particular airports as well as synergy between domestic and international departures are required to have an international aviation hub in India.

ALSO READ - Scindia wants Indian carriers to buy more widebodied aircraft

An international aviation hub or a hub airport is the name given to an airport that airlines use outside their headquarters to concentrate passenger traffic and flight operations. Hubs are used as a transfer point to get passengers to their final destination.

The country's civil aviation sector is on the recovery path after being hit hard by the coronavirus pandemic.

The more places a hub airport provides access to, the higher the flight frequency at the hub which also leads to a higher footfall of passengers.

For that to happen, many things need to come together. There should be anchor airlines at a particular airport. Their fleet must consist of wide-bodied aircraft to transfer passengers internationally.

Also, there should be synergy between domestic and international departures. So taking one or two airports and creating a model of these, would be the first step. It's a work in progress.

Indian aviation is in the growth stage as it approaches maturity.

Some airports such as Delhi’s Indira Gandhi International Airport had cumbersome transfers between domestic and international terminals which airlines had flagged as a roadblock to developing an airport as a hub.

ALSO READ - Scindia expects air passenger traffic to reach 40 crores by FY24

"We had 140 million domestic travelers and 60 million international travelers pre-Covid in 2020. That is 200 million, which is expected to go to 400 million travelers in the future so there's an opportunity beckoning at our door to make sure that we have an International hub here in India."Jyotiraditya ScindiaScindia wants Indian carriers to buy more widebodied aircraft

Several countries that boast of hub airports, also have anchor airlines that bring a large chunk of traffic to them such as the United Arab Emirates two flag carriers Emirates and Etihad which bring traffic to Dubai and Abu Dhabi respectively, or Turkey’s Turkish Airlines.

India is also projected to have a total of 220 airports including several heliports and aerodromes by 2026. The country's civil aviation sector is on the recovery path after being hit by the coronavirus pandemic.

The Ministry of Civil Aviation is engaging with the Ministry of Defense for greater convergence between civil and defence aerospace industries including making available business accrued through defence offsets to civilian maintenance, repair and overhaul or MRO sector.

Convergence between civil and defence aerospace industries is a norm globally and offshoots from one directly affect the other.

In talks with defence ministry for convergence between civil and defence aerospace industries: Scindia.

This could be very beneficial, as under the defence offset obligations, foreign vendors who secure defence contracts from India worth Rs 2,000 crore or more need to plough back a minimum of 30% of the contract value through investments back into the Indian defence industry. Such investments could be through orders, transfer of technology and investments in research and development.

ALSO READ - Safran to establish an MRO facility worth USD 150 million in Hyderabad

In July, French aerospace and defence multinational company Safran inaugurated three new production plants in India and announced the setting up of a new engine MRO facility, which will start operations by 2025, with a total investment of more than USD 200 million.

ALSO READ - Safran to set up a MRO facility for LEAP commercial aircraft engines in India

GST has a big impact on the MRO industry.

The investments included a new facility for Safran HAL Aircraft Engines, a 50/50 joint venture between Safran Aircraft Engines and government-owned defence public sector company Hindustan Aeronautics Ltd in Bengaluru.

ALSO READ - HAL estimates Safran MoU to generate USD 1 billion revenue in next 5 years

The 36 Dassault Rafale fighter aircraft acquired by India recently run on engines developed by Safran.

Industry experts also said that though India is sufficient in civil aircraft airframe MRO business, but is lacking in aircraft component (engine) MRO business.

"More than 65% of the total maintenance expenditure of an airline is focused on engines and developing an engine MRO business requires investment into land, facility equipment, and tooling."Ashmita Sethi, President and Country Head, Pratt & Whitney

With inputs from ET.