Civil Aviation

New Delhi, 15 February 2023: The Tata Group-owned Air India has announced to order 250 Airbus aircraft to boost its domestic and international operations. The commitment includes 140 A320neo and 70 A321neo single-aisle aircraft as well as 34 A350-1000 and six A350-900 wide-body jets that will mark a new era for the country as the all-new, long-range aircraft celebrates its debut in the Indian market. The order aims to both modernise and expand the airline’s fleet with the objective of creating a larger and premium full-service carrier that will cater to the growing travel demand in the region. Deliveries are set to commence with the first A350-900 arriving by late-2023. “Airbus has been a longstanding partner of Air India, and these new aircraft will play an important part in delivering Vihaan.AI, Air India’s comprehensive transformation and growth strategy,” said Campbell Wilson, CEO and MD, Air India. “A core element of this transformation is the significant expansion of our network, both domestically and internationally, coupled with the elevation of our on-ground and onboard product to world-class standards. This order marks the start of a new chapter for both Airbus and Air India.” “This is a historic moment for Airbus and for Air India. India is on the verge of an international air travel revolution and we are honoured that our partnership with the Tatas and our aircraft solutions will write that new chapter for the country’s air-connectivity,” says Christian Scherer, Airbus Chief Commercial Officer and Head of International. “The A350’s unique capability will unlock the pent-up potential of India’s long-haul market, its technology, long reach and second to none comfort will enable new routes and passenger experience with better economics and enhanced sustainability. Alongside the A350s, the A320 Family fleets will be the efficient, versatile asset to continue democratising and decarbonising air travel in the country – from domestic, regional, up to international levels.” Christian Scherer adds, “We salute Air India for its visionary strategy, picking the two reference aircraft types in each of their categories. We are thrilled and humbled to see these aircraft become the cornerstones of Air India’s renaissance. This fleet will propel the airline globally where it deserves to be – with the best. Over the next decade, India will grow to have the largest population in the world, its economy will expand the fastest among the G20 nations, and a burgeoning middle class will spend more on air travel. As a result, passenger traffic in India will grow fast, including on the long-range markets in the U.S., Europe and Asia-Pacific that the A350 is well positioned to serve.

Delhi,15th February, 2023: SAUDIA, the national flag carrier of Saudi Arabia, has announced the launch of “Your Ticket Your Visa”. The first-of-its-kind service provides guests with even easier access to the Kingdom through a digital integration system that links transit visas with flight tickets. “Your Ticket Your Visa” service is introduced in collaboration with the Ministry of Foreign Affairs, the Ministry of Interior, the Ministry of Hajj and Umrah, the Pilgrims Service Program, and the Saudi Tourism Authority. The new service, which covers all international airports in the Kingdom, will allow guests to stay in the Kingdom for up to 96 hours, during which they can travel around the Kingdom and perform Umrah. The digital integration with the Ministry of Foreign Affairs facilitates the issuing of the transit visa and links it to the flight ticket within three minutes. Captain Ibrahim Koshy, CEO of SAUDIA, said: “The launch of this innovative and seamless Stopover Visa is the first of its kind in the aviation industry and a significant milestone in our digital transformation program. It is a testament to SAUDIA’s commitment to supporting the Kingdom’s strategic goal of reaching 100 million visits by 2030 and we are confident it will positively impact the growing number of transit passengers while enhancing our position as a hub that connects East and West. The new service will also encourage passengers to perform Umrah, visit key destinations and attend events and Saudi seasons.” The launch of the new service comes in line with SAUDIA’s commitment to promote King Abdulaziz International Airport in Jeddah and strengthen its role in the region by configuring SAUDIA’s flights coming from the east and departing to the west, facilitating travel procedures by collaborating with the Jeddah Airports Company, and coordinating with the Saudi Tourism Authority to provide incentive packages for those wishing to benefit from “Your Ticket Your Visa” service. The “Your Ticket Your Visa” service is part of the digital services provided by SAUDIA via its website and smart applications, which are constantly evolving to facilitate and simplify travel procedures and make a shift in the after-sales services.

Pasay City, PHILIPPINES, 15th February,2023: The Philippines’ national flag carrier, Philippine Airlines, Inc. (PAL), announced that it has signed an agreement with the global aviation software provider Ramco Systems, to deploy Ramco’s state-of-the-art Aviation Suite V5.9. The solution will replace standalone legacy systems thereby integrating, automating, and enhancing business performances across PAL and its affiliate PAL Express. Aligned with PAL’s Accelerated Initiatives for Recoveries and Full Optimization through Innovation and Leadership (AIRFOIL) program, Ramco’s on-cloud, next-gen platform will offer PAL end-to-end optimization of maintenance and engineering business processes that will support regulatory compliance and enable sustainable digital transformation through paperless operations. Capt. Stanley Ng, President & Chief Operating Officer, Philippine Airlines, Inc. (PAL), said, “At PAL, our focus has always been on improving our global network infrastructure and making Philippine Airlines worthy of our customers’ enduring trust and support. This has led us to embark on a transformational journey towards technological upgrades and innovation. The extensive functionalities of Ramco’s next-gen Aviation Software, together with our shared values of excellence and customer-centricity, will offer us a technological edge and will help us serve our customers with a robust digital infrastructure.” P.R. Venketrama Raja, Chairman, Ramco Systems, said, “The addition of Philippines’ national flag carrier to our expanding clientele is a testament to Ramco’s track record as a leading software provider in the airlines segment. Embedded with latest technology, best-in-class functionality and user-friendly features, Ramco Aviation Software has gained the trust of many leading operators in the industry. As PAL’s tech partners, Ramco will support PAL organization’s mission of service and propel its global expansion plans.”

Netherlands, 9th Feb 2023: Gen24Flybiz, an upcoming Flight Training Company based in Mumbai has entered into an agreement with Avion to supply eight Airbus A320 Full Flight Simulators. The new center is scheduled to open in July, with two Avion A320 simulators being shipped to India and certified by the Indian civil aviation authority, DGCA. The remaining six simulators will be delivered in about eighteen months. The agreement followed the announcement of the acquisition of Avion Group and Avion Simulators in the Netherlands by the Gen24 Group of India. The group is promoted by Padmakar Mulay Group of Companies and its flagship company, Gangamai Industries & Constructions Limited (GIACL). Manoj Pandey, CEO of Gen24 Group, explains the acquisition: “Avion’s unique simulator design combined with the team’s expertise offers a great opportunity for Gen24to rapidly expand our footprint in professional flight training and simulator manufacturing. The synergies shared between Gen24 and Avion make it an ideal acquisition and impeccable match.” The companies have agreed to further enhance Avion’s R&D activities by developing a Full Flight Simulator for the Boeing 737MAX aircraft, developing new functions like lesson plans, debrief tool and a 2.1 software update for the Airbus A320 simulator. To support the enhanced R&D program, Avion will expand its team in the coming months. “We are thrilled Avion has become part of a strong industrial group with a clear ambition to be a knowledge leader in the flight training industry. This will enable Avion to develop its portfolio of products and grow market share accordingly”, says Erik Varwijk, outgoing CEO of Avion. The AvionFlight Training Center at London Luton Airport will continue its operations, and further expansion of this center will be investigated.

Kerala, India,6th February 2023: *Successful Thiruvananthapuram route *Flying to eight major Indian cities within its network of 55+ destinations Jazeera Airways,Kuwait’s low cost airline, celebrated five years of operations in India and the success of its Thiruvananthapuram route recently. In the last five years, Jazeera Airways has expanded from one route to Hyderabad starting in 2017, to eight major cities in the India, including Ahmedabad, Bengaluru, Chennai, Delhi, Kochi and Mumbai. The airline offers passengers from these Indian cities, a direct corridor to Kuwait and other countries in the GCC at competitive prices. The Thiruvananthapuram route was launched in October last year, with two flights operated from Kuwait weekly. Romana Parvi, Regional Manager – South Asia for Jazeera Airways explained: “At Jazeera Airways, India factors high on our list of top destinations, both for inbound and outbound travel. We are always keen to serve destinations that provide better connectivity for our passengers at reasonable fares. We currently serve eight major cities in India with two in Kerala. As always, we will continue to scope out opportunities in India to cater to the high demand from both expats and business travellers in Kuwait and the extended region.”

Mumbai, February 3, 2023: Vietjet has reported consolidated revenue of VND39,342 billion (approx. US$1.68 billion) in 2022, with a consolidated loss of VND2,171 billion (approx. US$93.1 million) mainly due to heavy capital investment in its core business. Vietjet has transferred more than VND3,559 billion (approx. US$152.7 million) of profit to the parent company for asset investment in acquiring one new A321 NEO aircraft from Airbus, two A321 aircraft from lessors and three aircraft engines. Vietjet has transported 20.5 million passengers on 116,000 flights in 2022, of which domestic transport grew by 20% over 2019’s, supporting the airline’s recovery momentum. The number of domestic passengers transported in Q4/2022 increased seven fold YOY and was higher than the pre-pandemic growth rate of 24%. To accommodate its stratety of expanding and growing middle-range international flight network, Vietjet has developed a widebody fleet of 3 A330 aircraft. The airline has opened 20 new routes last year with a focus on the Indian market to connect economic-tourism hubs like New Delhi Mumbai to Hanoi and Ho Chi Minh City. As of December 31, 2022, Vietjet operated 103 flight routes. Eyeing to operate across continents and bring the flying opportunities to millions of people, Vietjet never ceases to develop its international network with new routes to Astana and Almaty (Kazakhstan) and Melbourne and Sydney (Australia). Such efforts also put Vietjet in the leading role to promote the economic-trade-tourism relationships between Vietnam and other countries, helping to bring Vietnam’s image to the world while taking local and international tourists to destinations in the country. The airline has contributed greatly to the State budget and the community. Statistics in 2022 indicated a robust recovery of the aviation industry post-pandemic. In Q4/2022, Vietjet’s parent company reported a net revenue of VND7,352 billion (approx. US$315.5 million), leaping by 175% YOY with a profit of VND902 billion (approx. US$38.7 million). The total revenue for 2022 was VND32,506 billion (approx. US$1.39 billion) while the profit was VND215 billion (approx. US$9.23 million). The airline has paid a total of VND4,349 billion (approx. US$186.79 million) of direct and indirect taxes, fees and charges last year. By the end of 2022, Vietjet’s total asset reached more than VND 67,000 billion (approx. US$2.87 billion), increasing by 30% YOY owing to long-term assets growing by over $200 million. The long-term debt-to-equity and liquidity ratios stayed at 0.7 and 1.3 respectively, which were considered as good indicator in the aviation industry. As of December 31, 2022, the balance of cash and cash equivalents remained at VND1,800 billion (approx. US$77.3 million), well faciliating the liquidity demand for business operations. In 2023, Vietjet continues to set high goal of revenue growth based on the reopening of the Chinese market while further promoting international markets of great potential like India, South Korea, Japan, Australia, etc. It is of the utmost urgency that the Government considers lifting the price cap on flights and allows for fuel surcharge to strengthen the positions and competitive capabilities of domestic airlines as a wave of international airlines is expected to land in Vietnam this year. In June 2022, the “Fly now, Pay later” service by Vietjet and Movi was awarded the “Best New Fintech Product 2022” by the UK’s prestigious magazine The Global Economics Times. Vietjet also won several international awards, including the “World Airline Award” by Skytrax, “Most Valued Airline of the Year in Asia 2022” and “Best Cabin Crew Service in ASIA 2022” by the World Business Outlook in November 2022. Striving to meet the ever-growing demands of the customers while further engaging with them, Vietjet has launched Vietjet SkyJoy loyalty program with conveniences and privileges to accumulate and redeem loyalty points with special offers from big brand partners. Vietjet SkyJoy is expected to elevate Vietjet’s brand value and increase the customer pool. Joining hands with the community to support the disadvantaged during the Lunar New Year 2023, Vietjet has operated free flights for poor workers and orphaned students from all over the country to bring them home for a reunion with the family.

22nd January 2023, New Delhi: Senior IAS officer Vikram Dev Dutt has been appointed as the next chief of aviation regulator Directorate General of Civil Aviation (DGCA). The Appointments Committee of the Cabinet has approved the appointment. He will take over as the head of the aviation regulator on February 28, upon the superannuation of incumbent DGCA chief Arun Kumar. Dutt, an IAS officer of 1993 batch of AGMUT (Arunachal Pradesh, Goa, Mizoram and Union Territory) cadre, is presently serving as the chairman and managing director of Air India Asset Holding Ltd (AIAHL).

27th September 2022, London: The International Air Transport Association (IATA) will be trialing a CO2 emissions calculation tool specifically developed for cargo flights together with Etihad Airways. To effectively manage and report on sustainability progress, the entire value chain – shippers, forwarders, investors and regulators – along with consumers are asking for reliable and trustworthy data calculations. This trial will provide a valuable proof of concept for the cargo component of the IATA CO2 Connect carbon calculator. IATA has been successfully providing IATA CO2 Connect for passenger flights since June this year, with actual fuel burn data of 57 aircraft types representing ~98% of the active global passenger fleet . By using airline specific data on fuel burn and load factors, it is the most accurate in the market. Calculating the carbon impact of cargo shipments has more challenging parameters, not least of which is the unpredictability of routing at time of booking an air cargo shipment that can often include non-air segments. In addition, cargo can be carried on both dedicated freighter aircraft and in the bellies of passenger aircraft. To achieve equal levels of accuracy to the passenger calculator, it is essential to collect actual data on fuel burn, load factors and other key variables in trials. IATA will be working with Etihad Cargo to track the necessary data for cargo shipments during a three-month trial. Etihad will be sharing data from flights and advising on various use cases to achieve the highest levels of accuracy, consistency and transparency. By mid-2023 IATA aims to launch CO2 Connect for Cargo providing the industry with precise and consistent methodologies for both passenger and cargo operations. “With a strong commitment to innovation, Etihad Cargo actively seeks out and facilitates the development, trials and launch of promising solutions for its customers and partners. The airline’s development with IATA demonstrates the ability and willingness to co create solutions to support Etihad Cargo’s journey to achieving net zero carbon emissions by 2050 and demonstrates the carrier’s agility in adopting state-of-the-art technology and digital solutions. IATA’s CO2 Connect carbon calculator will be an effective tool in making the transportation of cargo more sustainable and will benefit not only Etihad Cargo’s customers but also the wider air cargo sector in the future” said Martin Drew, Senior Vice President Global Sales & Cargo at Etihad Aviation Group. “Aviation will achieve net zero carbon emissions by 2050. And our customers—travelers and shippers—need accurate information on the emissions related to their activities to manage their own commitments and reporting obligations. For all these purposes, accurate data is critical. IATA CO2 Connect already provides this for passenger operations. This trial with Etihad will help us in bringing an industry-leading carbon calculator for cargo in the coming months,” said Frederic Leger, IATA’s Senior Vice President for Commercial Products & Services.

The Indian aviation sector has come a long way in the last 75 years and with its vast growth opportunities, sky will truly be the limit for the sector in India’s Amrutkaal. By Ajay Sawhney On August 15, 2022, India will complete 75 years of its independence and enter into an Amrutkaal – a 25-year long period leading up to the 100th anniversary of Indian independence. From being completely controlled by the Government of India (GoI) for nearly 40 years after independence to being liberalised in the 1990s to the subsequent introduction of public private partnership (PPP) model for the development of airports, the Indian aviation sector has undergone several structural reforms in the last 75 years.With the introduction of low cost carriers and the regional connectivity scheme of the GoI, the Indian aviation sector, which was once accessible only to a limited few, has been democratised in the last few decades and is now available to the majority of masses. The increasing demand for air travel has also translated into the number of airports growing at an extraordinary pace and this momentum is expected to get further accelerated as the GoI plans to increase the number of operational airports from 131 in 2022 to 200 by 2025. The ascending growth of the Indian aviation sector has led to India boasting one of the largest aircraft order books in the world with pending deliveries of over 1,000 aircrafts. The high purchasing cost of an aircraft makes leasing an efficient tool for the airline operators to manage their operational costs;however, owing to the lack of a home-grown aircraft leasing industry, the Indian airline operators have had to depend entirely on foreign lessors to acquire aircrafts. In a bid to create an Atmanirbhar aircraft leasing industry, the GoI, in October 2020, permitted entities operating in the IFSC to undertake aircraft leasing and financing activities. This was followed by the issuance of a Framework for Aircraft Operating Lease by the IFSCA and the announcement of several tax exemptions for aircraft leasing and financing entities in the Union Budget 2021-22. These initiatives are indicative of the GoI’s continued commitment to support the aviation sector and its resolve to make India a global hub for aircraft leasing and financing activities. With passenger traffic expected to surpass pre-pandemic levels by the end of this year, the recovery of the Indian aviation sector is a testament to its remarkable resilience and robustness. The ‘new normal’ ushered by the pandemic impelled the airport operators to revamp their modus operandi and give serious consideration to technologies that had earlier been overlooked to re-build the trust of the passengers. This translated into automation being integrated in operations via biometrics and facial recognition technology to create a touchless airport experience. The Ministry of Civil Aviation (MoCA) also introduced ‘DigiYatra’ for digital processing of passengers at the airports and eGCA (an e-governance platform) to automate the functioning of Directorate General of Civil Aviation. This digital flight of India’s aviation sector is expected to get further accelerated with the integration of 5G technology in the aviation ecosystem which will not only enhance the passenger experience but also augment the efficiency of airport operations. To realise India’s commitments under the Paris Climate Agreement, the GoI should now consider giving a policy push for the uptake of sustainable aviation fuel (SAF) in aircraft operations. The SAF industry is expected to become a multi-billion dollar industry by 2028 and, with the abundant availability of SAF feedstock, India is well placed to dominate the SAF supply chain. The Indian aviation sector has achieved several key milestones in the last 75 years and has grown exponentially to become the third largest domestic passenger market in the world. The efficiency displayed by the Ministry of Civil Aviation (MoCA) in the strategic transfer of Air India to a private player has set a benchmark, and the privatisation of airports at Delhi, Mumbai, Hyderabad and Bengaluru have set an example for the most successful PPP models for airports across the globe. The policy initiatives introduced in recent years, such as Nabh Nirman (the airport capacity augmentation scheme) and PM Gati Shakti (the multi-modal infrastructure connectivity scheme) have set the foundation for making Amrutkaal a defining period for the Indian aviation sector. With the combination of carefully crafted policies by the GoI and the synergies created through PPP, the Indian aviation sector will be a key driver of the Indian economy and a frontrunner to become a global hub for all aviation activities. (This piece was authored by Ajay Sawhney, Partner, and Mayank Udhwani, Associate, Cyril Amarchand Mangaldas.)