Aviation Insider

Articles giving aviation insights

Jet Airways Faces Major Financial Turbulence!

In a bid to revive their financial condition, Jet airways is looking to sell a part of its stake and has approached investment bankers to help them out.

India’s second largest airline, by market share, has been going through a rough patch as they have been left cashed strapped due to high fuel prices, rising competition and lack of expansion in the past 6 months.

The airline is looking to raise immediate cash and the stake sale may include Jet Airways founder, Mr. Naresh Goyal, offloading a part of the promoters share in the company. Mr. Goyal owns a majority stake of 51 percent in the airline while Etihad owns 24 percent stake.

Jet Airways has reported a loss of Rs 636.45 Crores in FY 2017, while its competitors SpiceJet and IndiGo Airlines registered a profit of Rs 566.66 Crores & Rs 242.37 Crores respectively.

The senior management team of the airline informed its employees in several face-to-face meetings that the carrier’s financials are in a bad shape and drastic measures need to be taken to cut costs. They have said the airline will not operate more than 60 days if these measures are not taken.

Apart from selling shares in the airline, Jet’s top management has pitched for a 25 percent cut in their staff’s (Including pilots) salary and a reduction in the number of leaves to reduce employee cost.

The airline held a meeting with their pilots in Delhi and Mumbai on 1st & 2nd of August for negotiating these terms. Jet Airways CEO Mr.Vinay Dube, EVP Flight Operations & Engineering, Mr. Nikhil Vaid and Chief People Officer Mr. Rahul Taneja, addressed the pilots.

This was followed by an open house discussion, for the proposed salary cut, with the representatives of the airline’s pilot union, National Aviation Guild (NAG).Currently, Jet Airways has 2,000 pilots and a workforce of 16,000 people.

Jet Airways is not the only carrier to be affected by intense cut-throat competition and rising fuel costs. Many domestic airlines have reported a drop in profits for the first quarter of this fiscal year.

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Navi Mumbai Airport’s Phase 1 Construction May Overshoot 2019 Deadline!

Maharashtra Government’s much-anticipated project, the Navi Mumbai Airport may not be able to start operations by the end of 2019.

According to Civil Aviation Ministry officials, factors such as rehabilitating hundreds of displaced villagers around the construction area and delay in pre-development work may result in the airport opening in 2020 -2021.

The Navi Mumbai International Airport is being developed under a public-private partnership between Mumbai International Airport Limited (MIAL) & City and Industrial Development Corporation of Maharashtra Ltd (CIDCO).

According to a concession agreement signed by the 2 stakeholders, the construction of the airport is to be completed by 2021. But a large chunk of pre-development work is yet to be finished and authorities say that it is difficult to build a runway and operationalize a terminal building in 16-17 months.

CIDCO is responsible for implementation of this airport project. The project is located in an area spread across 1160 hectares, with a river, a few hills and more than 10 villages in its immediate vicinity.

CIDCO has said that they can complete the 1st phase by end of 2019, however, many villagers are holding up to receive more benefits from the government to vacate their lands, while some are not ready to move at all.

As a result, a large chunk of pre-development work that includes blasting hills, diverting the Ulwe river, filling up water bodies and leveling of land, is yet to be completed. The ongoing monsoon season has also slowed development work.

CIDCO’s joint Managing Director, Mrs. Prajakta Lavangare, who is overseeing the project says that despite the tight deadline, the agency has been meeting time-defined targets and is inching towards its objective.

She also said that most of the villages have vacated, however, they expect the others to move out by the end of September 2018.

The Navi Mumbai airport, a much-delayed project, was first proposed in 1997 as a secondary airport to support the busy Mumbai airport. Estimated to cost ₹ 3,000 crores, the Navi Mumbai airport received the government’s approval only in 2007.

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System Glitch At The Mumbai Airport Delays More Than 50 Flights!

Several flights at the Mumbai airport were delayed after the airport management system developed a glitch on Tuesday.

The computer software, which carries out vital airport functions, crashed for more than an hour causing the flight display and check-in counter screens to go blank.

Here are all the details about the incident –

  • The technical glitch made it difficult to carry out the check-in and baggage handling process from 4:45 p.m. to 6 p.m.
  • Flights which were ready to depart post 5:15 p.m. were majorly affected.
  • Most of the flights got delayed between 6 p.m. and 7:30 p.m.
  • Even though the system was restored by 6:00 p.m, the airport saw a delay of many departure flights post 8 p.m.
  • Almost 50 flights were delayed for more than 30 mins due to the system glitch

The major congestion at the airport was caused at Terminal 2 of the Chattrapati Shivaji International Airport.

With the check-in counter and flight display screens blank during peak hour airport traffic, the queue at different airline counters grew with every passing minute. Airlines handled check-in manually till the error was fixed.

Mumbai International Airport Limited (MIAL) released a statement saying that they regret the inconvenience caused to passengers due to the unexpected management software glitch. Their team resolved this issue in the shortest possible time to resume flight operations at the airport.

The Mumbai airport is the second busiest in the country after Delhi’s Indira Gandhi International Airport. Last month, Mumbai airport was ranked the fifth least punctual in the world in a study by OAG, a global leader in flight information.

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Government’s “Digi Yatra” Initiative To Kickstart In 2 Months!

Government’s much anticipated “Digi Yatra” scheme is all set to be rolled out to make flying hassle-free for travellers in India.

According to Union Minister, Mr. Suresh Prabhu, Civil Aviation Ministry’s “Digi Yatra” facility is expected to be implemented at Indian airports in the coming 2 months.

The initiative, aims at making air travel ‘Paperless’ by using new age technology throughout a passenger’s airport journey. The ministry aims to do this by making ticket booking, airport entry and boarding pass security check-in completely digital.

Under this system, the passenger’s biometrics, such as facial or iris, will be captured once they enter the airprot and the person will be able to go through it and board the flight without showing their tickets or paper documents.

Mr.Prabhu also said that the system will not just be Aadhaar-based. The passenger has the choice to provide any identification and if somebody doesn’t want to reveal their identity, they can go through the normal process. This will ensure that the government does not violate Supreme Court’s privacy guidelines while implementing this system.

The government is also working on a comprehensive and integrated plan for 2035 Indian Aviation, which is expected to be ready in the next few months.

This plan is a vision of what Indian aviation industry will look like by 2035.It involves incorporating new age infrastructure at Indian airports  and manufacturing of airplanes/drones.

Technology under the “Digi Yatra” scheme has been tested on a trial basis and has been a success at major Indian airports such as Hyderabad , Bangalore , Bombay & Delhi.

Here are a few benefits that passengers can enjoy once the “Digi Yatra” system is implemented –

  • Fast airport entry and automated check-ins without having to use paper documents
  • Walk through security scanners swiftly, thanks to advanced biometric security systems
  • Real-time updates on delays, protocols, airline timings, queue lengths etc on the phone itself
  • Navigation through the airport using digital guidance systems, interactive kiosks and Augmented Reality(AR) apps
  • Real-time notifications when the luggage reaches the baggage claim belt
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Floods May Force Authorities To Shutdown Cochin Airport!

After winning UN’s prestigious “Champions Of Earth” award, it seems like there is some bad news for Cochin Airport!

Authorities at the Cochin International Airport Limited (CIAL) may have to close the airport down due to a flooding situation in the region.

CIAL is keeping their fingers crossed as the water levels are rising at the Idukki and Idalamalyar dams due to heavy rainfall.

According to a senior official at CIAL, if the Idamalayar dam and Idukki dam are opened simultaneously, Cochin Airport will not be able to escape flooding once again.

However, he said that if the flow of water from Idukki Damn is regulated, it will not affect or pose any problems for the airport. He added, that a team is monitoring the situation every 2 hours and the necessary equipment has been moved to the first floor of the airport. In case there is an emergency situation, the rest of the equipment is ready to be shifted to a safer place.

In 2013, officials had to shut down Cochin Airport, when the adjoining Chengal Canal overflowed after opening the upper Sholayar dam and four shutters of Idamalyar dam due to heavy rainfall, leading to massive floods.

Ever since this happened, CIAL started construction work to increase the depth of the Chengal Canal to handle the water-flow during rains. They also reinforced the outer boundaries of the canal and the airport, to prevent flooding.

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Delhi Airport To Stop Stamping Of Boarding Passes From August 2018!

There is some good news for passengers flying from Delhi’s Indira Gandhi International Airport!

Starting next month, Delhi International Airport Limited(DIAL) will stop the practice of physically stamping boarding passes for passengers travelling on domestic airlines.

DIAL has said that, this process will start with GoAir passengers flying out of Terminal 2 (T2) and will eventually be extended to other airlines flying from the remaining 2 terminals (T1 & T3).

Head Of Central Industrial Security Force(CISF), Mr. M.A. Ganapathy, had last week asked the operators of Delhi, Mumbai and Bangalore airport to do away with the practice of stamping “Security Checked” on a passenger’s boarding pass at the earliest.

While Delhi Airport has given a timeframe as to when they will start this process, It is expected that Mumbai & Bangalore airport will announce their plans to implement this practice in the near future.

The process of doing away with stamping of airplane tickets is similar to the one adopted to phase out stamping of hand baggage tags. To make these a success and keep security under check , airports will have to use HD CCTV cameras and other high tech security equipment to fix accountability, in case something goes wrong.

Mumbai airport has improved its security in this aspect and has installed E-Gates near the Pre Embarkation Security Check (PESC) area. They have also installed HD cameras at Terminal 2, to capture a clear picture of passengers as well as the security personnel frisking them.

Stopping the practice of stamping boarding passes will be the next step in allowing domestic passengers a complete paperless travel experience. They will just have to show their boarding passes on their personal electronic devices like mobiles, scan the airplane ticket barcode & board the airplane.

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Cochin International Airport Awarded UN’s Highest Environmental Honour!

Cochin International Airport Limited (CIAL) will soon be awarded the 2018 ‘Champion Of Earth’ award, which is the highest environmental honour given by the United Nations(UN).

The award is being given to honour the successful implementation of the solar energy project at the airport.

A special team led by Mr Erik Solheim, Executive Director of the United Nations Environment Programme (UNEP),had visited the Cochin Airport to study about its solar initiatives. They held a discussion with the chief minister of Kerala, Mr. Pinarayi Vijayan, who is also the chairman of CIAL.

Managing director of CIAL, Mr. V J Kurian, has said that Cochin International Airport has set an ambitious example by becoming the world’s first fully solar-powered airport and he hopes that others will follow their example.

He also said that CIAL has shown the world that big infrastructure projects like airport can be operated using alternative sources of energy.

United Nations established the “Champions Of Earth” award in 2005 to recognise outstanding environmental leaders from public/private and the civil society.

CIAL has been chosen in the “Action & Inspiration” Category, which recognises individuals or organizations that have taken bold environmental action, and in doing so, inspired others to follow in their footsteps.

By September 2018, CIAL will increase the airport’s solar plant capacity, from 30 Milliwatt power to 40 Milliwatt power, which will produce 60 million units of power every year. This will help the airport cut energy costs by Rs 40 Crore per annum and reduce carbon emissions by more than 9 lakh metric tons over the next 25 years.

The prestigious award will be presented at a gala ceremony which will be held near the UN General Assembly, in New York, on 26th September 2018.

Cochin Airport, which was the first Indian airport to be developed under a public-private partnership, had handled 10 million passengers last year. It also witnessed a 22% increase in the domestic passenger volume and 4% increase in international passenger arrivals in the Financial Year 2017-2018.

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Service Standards At Major Indian Airports To Be Closely Monitored!

The Airports Economic Regulatory Authority Of India(AERA) has announced that they will soon start monitoring the quality of passenger service at major Indian airports.

The authority will check if big Indian airports are meeting the service standards they have promised, in terms of time taken for various processes like check-in, security check and immigration.

AERA is responsible for fixing tariffs for Indian Airports which handle more than 15 million air travellers in a year. They are responsible for deciding the taxes, such as User development Fee, that a passenger has to pay.

They have said that AERA will start linking passenger service quality at an airport to determine the tariffs. They will start penalizing airports with sluggish services and reward those where passengers can breeze through the airport.

This decision has been taken to stop the congestion at airports during peak travel hours. Their concern is that airports have started to resemble overcrowded railway stations, where serpentine-like queues are a common site at check-in desks, security checks and immigration counters.

This has mainly happened because private airport operators and Airports Authority of India (AAI) have failed to meet the infrastructural demands after air travel exploded over the last few years.

According to AERA’s Chairman, Mr. S. Machendranathan, they will be appointing consultants to measure the quality of services provided at big airports. If the service standards are not met, AERA will start penalising them.

Hopefully, with this, airports will now make an extra effort to make sure that an air passengers journey through the airport is hassle-free.

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