Vistara brand to be dropped by Air India following the merger

Following the merger of Air India and Vistara into one-full service carrier, the merged entity will be known as Air India, which is much more recognized outside the country, the airline's chief executive officer Campbell Wilson said on February 27.

He added that the process of integration of Vistara with Air India is underway and is now awaiting approval from the Competition Commission of India (CCI).

While the resultant full-service carrier will be known as Air India, Wilson emphasised that efforts will be made to retain some of the "Vistara heritage in that new manifestation".

"The intention is to have one full-service airline and one low-cost airline in the group. The full-service airline will be an amalgam of Air India and Vistara," Wilson said. Campbell also said there is a desire to carry forward the heritage of both Air India and Vistara, and work is going through on the form.

Vistara brand to be dropped by Air India following the merger

"Vistara has a very strong recognition in the Indian market but if you look outside the Indian market, clearly Air India is much more recognised and has a 90-year history... the future full-service carrier will be called Air India but we would like to retain and celebrate some of the Vistara heritage in that new manifestation," Wilson said.

On November 29 last year, Tata Group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1% stake in Air India. The deal, which will make Air India the country's largest international carrier and second-largest domestic carrier, is expected to be completed by March 2024, subject to regulatory approvals.

ALSO READ - Air India and Vistara begin their integration process

Currently, Tata group owns a 51% stake in Vistara and the rest is with Singapore Airlines. Vistara became the second-largest domestic airline in India in July 2022 and retained the title for six months. In January, Air India overtook Vistara as the second-largest airline with a market share of 9.2%. IndiGo is the largest domestic airline with a 54.6% market share, while Vistara has a share of 8.8%.

ALSO READ - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

Addressing the media virtually, Wilson added that Air India's recent firm order for 470 aircraft from Airbus and Boeing Co will be at a list price of USD 70 billion. Wilson also said that Air India plans to fund the order with a combination of resources, including internal cash flow, shareholder equity and sale-and-leaseback of aircraft.

He said that Air India would fund its aircraft expansion through a combination of various sources and said that at the moment there is no timeline under which the company will have to exercise its option to buy more planes. Air India has the option to purchase another 370 planes from the likes of Airbus and Boeing, as part of its firm order for 470 planes.

On 14 February, Air India announced placing an order for 470 planes, 250 from Airbus and 220 from Boeing. "We have committed to a historic order of new aircraft that will start entering the fleet from the end of this year through the end of the decade, to both transform the fleet and power significant network and capacity expansion," Wilson said.

Wilson added that Air India has "enormous" potential and efforts are being done to make the group a significant international player.

The Air India CEO added that the airline is in the process of establishing a significantly large training for pilots and cabin crew in the country. He added that Air India is hiring around 500 cabin crew, pilots every month to increase their services.

ALSO READ - Air India to hire 900 pilots & 4200 cabin crew in 2023 after new aircraft order

Air India last week said that it will hire over 4,200 cabin crew and 900 pilots over the next three years. Air India in the short term will hire pilots and cabin crew from abroad to meet the demand of increasing flight operations.

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

Wilson also said that Air India is working on refurbishing its wide-body aircraft and has invested USD 400 million for the same. He added that the first refurbished wide-body aircraft of Air India is likely to come into service by June-July 2024.

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

Since taking over the loss-making Air India in January last year, Tata Group has been working on transforming the airline group and has announced that Vistara will be merged with itself, while AIX Connect, earlier known as AirAsia India, is getting integrated with Air India Express.

The Civil Aviation Research centre (CARO), a facility with advanced simulators being established in Hyderabad, will become fully operational by the end of this year and will have , a civil aviation ministry official said.

CARO, which is being established on a 20-acre plot within the Begumpet airport at a cost of INR 402.13 crore, will offer solutions in key areas in the civilian aviation sector in India. “The construction of the CARO building is under progress and in the final phase of construction,” the ministry officer said, seeking anonymity.

A research facility is functioning in a limited way at Begumpet airport with employees of the Airports Authority of India, another official said. “The new CARO will also be manned by AAI officers,” he said, declining to be named.

https://twitter.com/HyderabadMojo/status/1514607779394502656?s=20

“It also aims to provide a research platform for private and public stakeholders to cater to the needs of global aviation research through collaboration with government and private organisation, co-develop with international organisations, facilitate industry institution tie-ups, foster a vibrant research and development environment to attract top talent and provide resources for start-ups and innovations to carry out research.”

The official said.

CARO aims to promote in-house and collaborative research to cater AAI’s needs through establishment of a world-class research infrastructure with advanced simulators and laboratory facilities, the ministry official said.

CARO will develop indigenous technologies, promote and disseminate R&D activities, encourage creativity and innovation through human resource measures, and provide decision support using data analytical tools and cost- benefit analysis, he added.

Its foundation stone was laid by Suresh Prabhu, the then civil aviation minister, in July 2018, and was originally scheduled to be operational by May 2022.

With inputs from hindustantimes.

Also read - Civil Aviation Research Centre to be set up at Hyderabad’s Begumpet Airport

General Electric (GE), a multinational conglomerate, has been working closely with Air India, the country's flag carrier, to deliver its first GE-made aircraft in 2023. This significant development marks a milestone for both companies and is expected to strengthen the aviation sector in India.

Air India, part of Tata group, had signed an order for 40 GE engines, plus a multi-year engine services agreement.

Also read - Multiple Aircraft Types, Benefits Air India

"The first of the Air India aircraft with GE engines are expected to be service ready in 2023 itself."

Vikram Rai – Country Head, South Asia and Indonesia of GE Aerospace said on Thursday.

First GE-made Air India aircraft to be service ready in 2023 itself.

Terming Air India's engine order as a "big opportunity" for the jet engines and systems suppliers company, he said it reflects continued confidence in GE Aerospace technology --which has been powering Air India's carriers for more than 40 years.

Also read - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

Earlier this month, Air India, in a historic deal, announced it will buy 250 aircraft from Airbus and has also selected Boeing for the purchase of up to 290 planes as part of its growth strategy.

Air India was looking for a mix of aircraft to boost their domestic and international network through recent orders. Soon after the divestment of the airline, the airline indicated it was going for a historic order

Also read - Air India to hire 900 pilots & 4200 cabin crew in 2023 after new aircraft order

For the first time, India’s indigenously-made light combat aircraft Tejas will be participating in an international multilateral air exercise — Exercise Desert Flag VIll — in the UAE, reflecting India’s increasing efforts at showcasing the jet on the world stage.

An Indian Air Force contingent comprising 110 Air Warriors arrived at the Al Dahfra airbase of the United Arab Emirates to participate in the exercise, in which five LCA Tejas and two C-17 Globemaster III aircraft would take part, the IAF said. The exercise is scheduled from 27 February to 17 March.

“This is the first occasion when the LCA Tejas shall participate in an international flying exercise outside India,” the IAF said in a statement. As per the IAF, Exercise Desert Flag is a multilateral air exercise which will see participation from the air forces of the UAE, France, Kuwait, Australia, the UK, Bahrain, Morocco, Spain, the Republic of Korea, and the US.

https://twitter.com/IAF_MCC/status/1629407551703126017

“The exercise aims to participate in diverse fighter engagements and learn from the best practices of various air forces,” the IAF said.

ALSO READ - HAL’s LCA Tejas deal with Argentina has been put to hold

India has been in talks with several countries to export LCA Tejas, including Argentina and Egypt. India was also hopeful of selling the platform to Malaysia, but the country has signed a deal with Korean Aerospace Industries for the supply of 18 FA-50 light combat aircraft.

ALSO READ - India offers to set up production facilities for LCA Tejas and helicopters in Egypt

Tejas was to debut in an air exercise abroad last year. It was scheduled to take part in the multinational air exercise Cobra Warrior 22 at Waddington in the UK from March 6 to 27, 2022. However, the exercise was cancelled due to the Russia-Ukraine conflict. The LCA has taken part in several air shows abroad, but never participated in a combat exercise in a foreign country.

ALSO READ - IAF to participate in multilateral air exercise in the UK with Tejas jets

LCA Tejas set to debut at international multilateral air exercises in UAE

The aircraft had earlier participated in air shows in Singapore, Malaysia, Bahrain and Dubai. The LCA Mk 2, which got cabinet approval last year, has evinced interest from nearly 16 countries and efforts are on to identify private agencies to speed up the production of the jet.

Manufactured by state-run aerospace behemoth Hindustan Aeronautics Ltd (HAL), the Tejas aircraft is a potent platform for air combat and offensive air support missions while reconnaissance and anti-ship operations are its secondary roles.

Aircraft manufacturing company HAL terms LCA Tejas as a 4.5 generation, all-weather and multi-role fighter aircraft. “The aircraft is designed to be a multi-role aircraft capable of taking up offensive air support, close combat and ground attack roles at ease. It is also designed to undertake Ground Maritime Operations.”

As per the HAL, there are different variants of aircraft under production and development which includes Single seater fighter for the Air Force, Single seater fighter for the Navy, Twin Seater trainer aircraft for the Air Force and Twin Seater trainer version for the Navy.

The IAF has inducted several of the 40 earlier variants of LCA, ordered 83 improved Mk-1A variants in 2021, and is now looking at ordering the newest variant of the aircraft, LCA Mk-2.

ALSO READ - LCA Mark 1A expected to be out by February 2024

In 2021, the defence ministry awarded an INR 48,000-crore contract to Hindustan Aeronautics Limited for 83 LCA Mk-1A jets for the IAF. The first Mk-1A aircraft will be delivered in February 2024, with the rest slated to join the combat fleet by 2029. Last year, the government gave its nod to developing the LCA Mk-2, a platform that will form an important element of future air combat.

An advanced version of the aircraft (LCA Mk-2) is to be rolled out by February 2024, said a HAL official. Last September, the Cabinet Committee on Security sanctioned INR 9,000 crore to develop the 4.5 generation LCA Mk-2, which would be technologically much superior to LCA Mk-1.

UAE’s national carrier Emirates is exploring a codeshare agreement with Tata Group-run Air India as it prepares to expand globally with a record aircraft order, a senior Emirates executive said.

“Talks (with Air India) are at an early stage. They are a bit busy with the merger as well as other stuff. So, just initial-level talks are on, and let’s see how it evolves," Mohammad Sarhan, vice president of India and Nepal Emirates, said in an interview.

Emirates looks to join hands with a strong and premium airline like Air India to operate in the subcontinent, he said. Air India has signed deals for 840 aircraft (470 firm orders, and 370 options) that includes wide-body planes.

ALSO READ - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

“You know, earlier, the United and Emirates were rivals and now they are best of friends. We just signed a codeshare. Air Canada used to be a challenge for us. Now we are best friends. I think sooner or later we will be very close to some Indian carriers. Our aim for the future is to have a strong partner in India.

The best way forward (for Emirates) is (partnership) with a premium carrier. We do have interline with almost all Indian carriers, but it is not as good as codeshare, that will have one ticket, one fare, same baggage allowance, same service, and it is more consistent. We maximize the routes, we sell on that airline, that airline sells on us, we feed into them and they feed into us."

Mohammad Sarhan, Vice President of India and Nepal, Emirates

For outbound and inbound international traffic in India, Emirates is the largest foreign carrier and third largest overall after IndiGo and Air India, with nearly 10% share, according to October-December data from the Directorate General of Civil Aviation.

It is not Emirates’ first attempt at a codeshare in India. The airline had signed a codeshare agreement with SpiceJet in November 2019 but it did not take off for various reasons such as covid and a mismatch between a full-service airline and a low-cost carrier. “Both sides didn’t activate the codeshare. We are a full-service carrier so we will only like to partner with a full-service premium airline, that makes sense and matches us," Sarhan said.

Emirates considering a codeshare agreement with Air India

Emirates has been trying to increase flight operations from India since 2014 but has so far only been able to operate 65,000 seats for Dubai under the bilateral agreement between the two countries. Currently, the Indian government wants Indian carriers to expand to Europe and the Americas and to restrict foreign carriers by not allowing them to expand foreign flying rights.

With the growing aspirations of Indian airlines to increase overseas flights, Sarhan is hopeful that the demand for increasing bilaterals in the India-UAE sector will no longer be one-sided.

“The demand is big. The pie is big for everyone. We are probably missing out on some traffic but the Indian carriers are also missing out on this big demand from Dubai...I think the request is going to come from Indian carriers very soon," Sarhan said.

Emirates currently flies to nine major cities in India but sees potential in launching direct flights to Tier-2 and 3 destinations in India as well such as Surat, Lucknow, and Amritsar. The airline currently shares its bilateral flying rights with its sister airline flyDubai.

With a load factor of around 90% since resuming operations in India, the airline continues to see India as one of its top five markets, alongside the UAE, the US, Australia and the UK.

“We don’t see any slowdown in the Indian market. It is strong, it is growing. We are enjoying that and we are riding the same wave. We are also very surprised with the demand, it is very strong the fares are going up and up, we keep increasing the fares and the demand is still going up and we don’t see any slowdown," he said.

ALSO READ - Air India to Emirates and Pan Am: Who placed the biggest historic Aircraft orders?

Feature Image - Billy Wilt 

(With Inputs from Mint)

Air India Express (AIE), the Kochi-headquartered low-cost international arm of Air India, is likely to get 190 Boeing 737 MAX (737-8 and 737-10s) aircraft as part of a deal entered into by Air India with Airbus and Boeing to procure 470 aircraft over the next decade. The AIE had recently grabbed headlines for making frequent emergency landings (precautionary landings) in the State.

The airline has been using Boeing 737 MAX for its operations, while Air India has been using wide-body aircraft for its long-haul operations. The Air India Express has started hiring pilots and cabin crew members for its bases in south India to expand its operations.

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

The airline has entered into a merger agreement with AirAsia India, thereby expanding its fleet size from 24 to 53. The merger of Vistara with Air India is proposed by March 2024, subject to regulatory approvals.

Air India Express likely to get 190 Boeing 737 MAX as part of the mega aircraft deal

“The route dynamics of the airline will change significantly with the induction of the new aircraft. But, it’s too early to speculate on the routes as discussions are still underway. However, as per the preliminary understanding, Boeing 737 MAX will be given to the AIE. The airline, which connects 14 major international destinations, mainly in West Asia and Singapore, with 34 destinations in India, is expected to launch large-scale domestic operations with the induction of the new aircraft,” said a senior officer.

Though there is no lifespan prescribed by the aviation regulator Directorate General of Civil Aviation (DGCA) for a passenger aircraft flying in India, the average age of the aircraft owned by the AIE is 15 years. Since the majority of the recent emergency landings made by the AIE aircraft were due to technical issues, the induction of new aircraft would help the airline immensely, according to industry sources.

The airline has shifted a good number of officials from Kochi to its corporate office in Delhi. Its main operations would soon be from Delhi, said sources.

ALSO READ – From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

Air India recently announced its mega aircraft order with Airbus and Boeing on February 14, which involves 470 airframes and options for a further 370, which could potentially take the carrier to 840 planes – the order includes 210 Airbus A320neo family jets, 40 A350s, 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 777Xs. It has already announced plans to lease 36 aircraft (11 Boeing 777s and 25 Airbus A320s) of which two B777-200 LR have already joined the fleet.

ALSO READ - Aloke Singh to be the chief of Air India’s low-cost airline business from January 1

(With Inputs from The Hindu)