Vistara to absorb 70 AirAsia India trainee pilots grounded for a year

(Inputs from Business Standard)

Nearly 70 trainee pilots in AirAsia India who have been grounded for over a year will get an opportunity to work with Vistara.

While Tata group companies have inter-company transfer policies, such co-operation between the two airlines is unique. It will allow the trainee pilots to resume flying, help Vistara execute its expansion plans and could be a sign of further synergies between the two airlines.

The Covid-19 pandemic disrupted air travel and hampered the growth plans of airlines. It impacted pilot training too. Trainee pilots undergo ground classes, simulator training and supervised flying before being released for regular duty.

Nearly 70 trainee pilots in AirAsia India who have been grounded for over a year will get an opportunity to work with Vistara. (Image Courtesy - Business World)

Airlines have been operating fewer flights compared to pre-Covid times, as capacity has been capped by the government. Fewer flights mean reduced training opportunities for the junior crew.

Some 70-80 pilots were under training in AirAsia India but their training came to a halt because of the Covid-19 pandemic. These trainee pilots are now being offered a chance to join Vistara as AirAsia India has sufficient pilots to meet its requirements.

"This will certainly benefit pilots in their career progression. It is not so much of a cost-saving exercise for the airline," a source said.

Currently, AirAsia India has 27 Airbus A320 aircraft and will be receiving another aircraft next month.

Currently, AirAsia India has 27 Airbus A320 aircraft and will be receiving another aircraft next month. No other addition is planned at the moment. It is operating around 110-120 flights daily which are around 55-60% of its pre-Covid capacity. Currently, the government allows airlines to deploy 72.5% of their capacity.

AirAsia India declined to comment. In an internal email, the operations department wrote to the pilots that selected candidates will have to undergo ground and simulator training to maintain the validity of the licence before their transfer to Vistara. Those who do not wish to take the transfer will be assigned office work within the airline and no assurance can be given regarding the start of training in AirAsia India, the airline told its trainee pilots.

"For us, the momentum gained in the last one year on our international expansion has been rewarding and we have plans in place to continue adding more destinations to our network as soon as we can. While working on our future growth strategy we are leveraging every opportunity available within our ecosystem for the same."A Vistara spokesperson to Business Standard

Emphasising the need to rationalise tax rates on jet fuel, civil aviation minister Jyotiraditya Scindia on Thursday, September 9 said lower rates will bring in more flights and act as an economic multiplier that will be "50 to 100 times more" than what states earn from a low level of revenue from Value Added Tax (VAT).

Emphasising the need to rationalise tax rates on jet fuel, civil aviation minister Jyotiraditya Scindia on September 9 said lower rates will bring in more flights. (Image Courtsey - The Tribune)

Aviation Turbine Fuel (ATF) cost is a significant component of the operational expenses of carriers and the civil aviation ministry has been pitching for lower rates to boost the airline industry that has also been adversely hit by the coronavirus pandemic.

Addressing a press conference, the minister noted that lower the rates, more flights will come in and the economic multiplier will be 50 to 100 times more than what you (states) earn from a low level of revenue from VAT.

"There are two solutions to the issue of VAT on ATF. Go to every state for rationalisation (of VAT) so that there is a level playing field… Today, there are 8 to 9 states that are ranging between 1 to 4%. Other states vary from 4 to 30%. So much so that sometimes there is variation at inter-state also. So, some states have different for certain cities."If you look at all states, the VAT revenue from all states is ranging between INR 3,500 to INR 4,000 crore. It is not a large amount of money, but it is a huge multiplier in terms of economic growth.Second way is through the GST. For that too, it is the states that will decide on that… Ultimately, the responsibility lies with the states. It is important for us to the canvas with the right constituencies, which is states as well as the Ministry of Finance.I do not think that mandating policy on every front should be the domain of the government. You should allow the free market to function."Jyotiraditya M. Scindia, Union Minister of Civil Aviation

Noting that there is a long way to go in increasing air travel and that the market is there, he said rationalisation of VAT is important in this regard.

To a query on ticket refund policy, Scindia made it clear that markets should be allowed to perform that function.

Milan-bound IndiGo passengers protested at Amritsar airport and raised slogans against the company after the airline abruptly cancelled the flight due to denial of arrival permission from the country concerned at the eleventh hour.

"The Amritsar-Milan Indigo flight via Istanbul has been cancelled due to some permission issues with the concerned country's aviation authority. Passengers staged a protest at the IndiGo booking counter," an Amritsar airport official told ANI.

Milan-bound IndiGo passengers protested at Amritsar airport and raised slogans against the company after the airline abruptly cancelled the flight.

The flight was booked under Vande Bharat Mission flight and 215 passengers checked in at the terminal building for travelling.

The airline has confirmed the flight cancellation and the passengers were told by the airline that their full money would be refunded.

"IndiGo is committed to refund their entire money," an official said.

(Inputs from CNBC-TV 18)

The total debt of national carrier Air India has risen to around INR 43,000 crores, officials aware of the matter told CNBC-TV18.

As per the preliminary information memorandum, the total debt of Air India stood at INR 58,282.9 crore as of March 2019. However, the Cabinet had given post-facto approval in February 2019 for the creation of SPV namely Air India Assets Holding Ltd (AIAHL). They had decided to transfer the debt of Air India Ltd amounting to INR 29,464 crores to the SPV.

As of now, the total debt is around INR 43,000. This is after the transfer of INR 29, 464 crores to the SPV, a person aware of the matter said, adding that more than 90% of the total debt is government-guaranteed.

In Feb 2021, the civil aviation ministry had informed Rajya Sabha of the total debt of national carrier Air India as per provisional figures of 2019-20 (Apr-Mar) INR 38,366.39 crore after transfer of debt amounting to INR 22,064 crore to the SPV.

The total debt of national carrier Air India has risen to around INR 43,000 crores.

The divestment of the debt-laden national carrier is currently underway and the deadline for submission of financial bids ends on September 15.

In January 2020, the government had invited bids for strategic disinvestment of 100% stake of the Government of India in the airline. It also includes along 100% stake in Air India Express Ltd and a 50% stake in Air India SATS. Due to the COVID-19 pandemic, the last date for submission of preliminary bids was extended from time to time.

While multiple bids were received by the transaction advisor in the preliminary round, the outcome of the second round is expected to be known by next week.

“Air India has movable as well as immovable assets. With the disinvestment of Air India Limited, the movable assets are proposed to be transferred to the new owner of Air India. Immovable assets are being monetised by Air India to offset the debt of Air India Limited.The total Net Fixed Assets of Air India Ltd. as of 31.03.2020 (provisional) are INR 45,863.27 crore. These include land and buildings, aircraft fleet and engines, other fixed assets, Right of Use assets and assets and intangible assets. The enterprise value set for bidding has not been determined so far."Civil Aviation Ministry in Lok Sabha

The airline posted a net loss of INR 3836.78 crore in FY16, INR 6,452.89 crore in FY17, INR 5,348.18 crore in FY18, INR 8,556.35 crore in FY19 and INR 7,982.83 crore in FY20 as per provisional figures.

While there was no equity infusion by the union government into Air India during FY 2020-21, government Guarantee support of INR 964 crore has been provided to Air India which has helped it to raise new working capital loans from Indian banks. Further, Government has also extended the existing Guarantee of INR 6693 crore for working capital requirements and $819 million for refinancing of aircraft bridge loans. National Small Saving Fund (NSSF) loan of INR 4500 crore has also been provided to Air India in FY 2020-21.

Under the turnaround plan approved for Air India, the airline has received a total equity infusion of INR 30,520.21 crore from FY 2011-12 till Dec 2019, the civil aviation ministry had informed Lok Sabha in 2019.

Out of this, during FY 2019-20, FY 2018-19 and FY 2017-18, the equity infusion provided by the government to Air India Ltd was INR 0.01 crore, INR 3975 crore and INR 1800 crore respectively.

September 11, 2001 - The day etched in history as one of the worst terror attacks in aviation, sending ripples across the globe. The Islamic Extremist group, Al-Qaeda, took the responsibility for the four coordinated terror attacks in the US. The highly-trained terrorists hijacked 4 commercial aircraft and flew two of them into the "Twin Towers" of the World Trade Center in New York.

Wikimedia Commons

American Airlines Flight 11 crashed into floors 93 to 99 of the North Tower (1 WTC) while an United Airlines Flight 175 struck floors 77 to 85 of the South Tower (2 WTC) just minutes later. First responders immediately sprung into action to rescue those still trapped.

American Airlines flight 77 dove straight for the "symbol of the American military power"- The Pentagon and crashed.

United Airlines flight 93 crashed in a field near Shanksville in Somerset County of Pennsylvania and was suspected of having headed towards the Capitol Building.

An immediate aftermath after the tragedy, in addition to the massive loss of life and property, was the closure of US airspace.

The two-day US airspace closure led the operating revenue of airlines globally to drop to $307.5 billion in 2001 and $306 billion in 2002 from $328.5 billion in 2000IATA

The revenue continued to fall throughout the 5 year period until 2005 when it slowly began to catch up.

How it impacted aviation in India

The events that unfolded on that unfortunate Tuesday morning 20 years ago, had ripple effects on aviation throughout.

In August 2001, at a time before the merger of Air India and Indian Airlines, an official trip was made to Llyod's London, by representatives from both the entities to discuss and extend the insurance cover of Indian Airlines’ entire fleet.

Indian Airlines

Air India

The new insurance cover (for IA) was to come into effect from October 2001. Globally, no airline can fly its fleet unless it has an insurance cover. The team had to travel to London to meet with Lloyd’s as they are the underwriters for renewing the entire global fleet of civilian aircraft owned by various airlines. The insurance cover was obtained and there was relief all around that Indian Airlines would be able to continue flying its planes.V Subramanian, the then joint secretary and financial advisor in the Ministry of Civil Aviation

Unfortunately, fate had other plans. When the Indian team reached back, the fateful news of the hijack break-out and that could only mean one thing. The US and the insurers rolled back on the agreement and canceled all insurance contracts.

All aviation insurers issued a seven-day notice of cancellation of the air transport industry’s third-party war risk insuranceIATA said in a statement on September 17,2001

When we heard about the September 17 notification, we went into crisis mode, held innumerable discussions, and decided to get back to the insurers. It was also decided that the Indian side should be represented at a higher level and be capable of deciding on the spot instead of going through the process of seeking further approvals.-V Subramanian

Not willing to give up, Mr. Sunil Arora, the then chairman and managing director of Indian Airlines, Mr. Beri, the chairman and managing director of New India Insurance, and Mr. Subramanian approached the Llyod's team in London again, only to successfully reinstate the insurance terms once again.

Reportedly, the deal came through after two visits to London but this time, at increased premium rates due to the aftermath of the Twin Tower incident. Although this was true, a small price to pay to keep Indian Airlines flying.

This occurred at a time when Indian Airlines was the only major domestic operator in the country. Air India did operate domestic flights although they were essentially an extension of the flights originating from aboard.

COVER: AP

The forecourt of the Delhi airport was waterlogged for a "short period" on Saturday, September 11 morning due to sudden heavy rains, its operator DIAL said. Sources said five flights were diverted from the airport this morning due to the bad weather conditions.

Four domestic flights -- two of SpiceJet and one each of IndiGo and Go First -- were diverted to Jaipur. One international flight -- Emirates flight from Dubai to Delhi -- was diverted to Ahmedabad, the sources mentioned.

https://twitter.com/DelhiAirport/status/1436583124524175363

Waterlogging has been reported from several parts of the national capital including Moti Bagh and RK Puram in south Delhi after rains lashed the city Saturday morning. The Delhi International Airport Limited (DIAL) said on Twitter that "due to sudden heavy rain, for a short period, there was waterlogging at the forecourt".

https://twitter.com/SanjayJha/status/1436590714297589763

Credit - Sanjay Jha

"Our team was immediately aligned to look into it and the issue has been resolved," it added. An official of the meteorological department said the national capital received 97 mm rainfall since Friday morning.

The recent update from the Delhi Airport is that the water is being drained the operations are back to normal.

https://twitter.com/DelhiAirport/status/1436597881683668996