Category Archives: Aviation

An estimated USD 4.5 to 5 billion of funding will be required to overcome this crisis, mostly for airlines. Excluding IndiGo, the cash position of the industry as on 31-Mar-2020 was just USD 200 million (IndiGo had USD 1.36bn). The current low oil prices and excess liquidity, both globally and in India, would ordinarily have been positive for the sector. But the industry will not be able to fully benefit or raise funds due to structural issues.

Adani Airport, a subsidiary of Adani Enterprises, is set to become India’s biggest private airport operator after acquiring the entire 50.5% stake of GVK Airport. This takes its total to 74% controlling stake in Mumbai International Airport Limited (MIAL) as well as the proposed Navi Mumbai International Airport Limited. The remaining 26% is held by AAI.

In September alone, Lufthansa will offer 160 flights between India and Germany, more than five per day and more than four times as many as in August. The airline will operate between Frankfurt and Munich and the key Indian cities of Delhi, Mumbai, and Bengaluru. Ten weekly flights are scheduled for Delhi-Frankfurt, Delhi-Munich, Mumbai-Frankfurt and Bengaluru-Frankfurt. Lufthansa Group has also launched a free-of-charge re-booking policy for its customers regardless of the terms and conditions of their purchased tickets.

Usha Padhee, Joint Secretary, Ministry of Civil Aviation, has been given the additional charge of Director General of the Bureau of Civil Aviation Security (BCAS). In a Tweet announcing the appointment, Padhee revealed that she is the first woman to have been appointed to the post. Padhee succeeds IPS officer Rakesh Asthana, who has been appointed as the Director General of Border Security Force (BSF).

According to a survey by Bengaluru airport, the intent to fly among respondents improved from a mere 13% in phase 1 to 33% in phase 5 owing to continuous enhancements in safety and hygiene measures at the airport. The survey was conducted over five phases from April 2020 to July 2020, to understand passenger sentiments around air travel. Contactless processing has also led to increase in passenger confidence in air travel.

Virgin Atlantic has introduced free COVID-19 insurance cover on all new and existing bookings. The policy, which applies to all flights booked with Virgin Atlantic, is designed to complement existing travel insurance and provide additional peace of mind for upcoming trips. In the event that they or anyone else on their booking becomes ill with COVID-19 while travelling, Virgin Atlantic COVID-19 Cover ensures related costs are covered, no matter how long the trip is or even if they’re visiting another destination on the same overseas trip. The insurance policy is fulfilled by Allianz Assistance and covers emergency medical and associated expenses while abroad totalling £500,000 per customer – the highest value of policy offered by any airline to date, with no excess payment required. The policy also covers expenses incurred up to £3,000 if a customer is denied boarding, at either departure or in destination, or has to quarantine due to positive or suspected COVID-19 during a trip. Customers booked to travel from 24 August, 2020 up to and including 31 March, 2021 will automatically receive the cover. It also applies on flights operated by partner airline or a JV carrier such as Delta Air Lines or Air France-KLM. Juha Jarvinen, Chief Commercial Officer at Virgin Atlantic says, “Following our return to the skies to much-loved destinations like Barbados, we’re planning more services including London Heathrow to Delhi, Mumbai, Lagos and Tel Aviv.” The cover starts from the point of booking and ends when the customer returns home or to a hospital or nursing home in their home country. One-way trips are also included, with the insurance cover valid until the end of the journey, which is defined as 12 hours after the arrival of the customer’s final flight.

The Directorate General of Civil Aviation (DGCA) has initiated a safety audit of all the airports affected by the monsoons and of airlines in a phased manner, starting with Air India and SpiceJet, in the wake of the recent crash in Kozhikode. The aviation body said in a statement, “DGCA has started the safety audit of airlines and 12 airports affected by the monsoon, as of now. Audit of airlines to be done in a phased manner, beginning with Air India and Spice Jet.”

CAPA India in its webinar on ‘Financing Indian Aviation in the Post COVID-19 era’ projected that Indian carriers will require additional funding of INR 200-250 Billion in FYY2021 to bridge the gap between revenue and expenditure. According to CAPA India, the aviation industry in the country needs massive recapitalisation and urgently. Delays will further diminish the already compromised chances of survival. Industry and government collaboration is essential for survival and revival. Industry cannot navigate the crisis alone.

According to a research and analysis conducted by CAPA India recently, all funding options need to be on the table and fully explored by the Indian airlines to identify the most appropriate and viable for implementation. It includes the element of Original Equipment Manufacturing compensation. The industry’s financial challenges will become increasingly apparent from September-October. Promoters, bankers, private equity and the government are all unwilling to provide support given demand risk and uncertainty.

The Union Civil Aviation ministry has decided to increase the aviation security fee (ASF) for embarking domestic and international passengers with effect from September 1. The aviation security fee has been hiked by Rs 10 to Rs 160 from Rs 150 for domestic passengers and to $5.20 from $4.85 for international passengers. The fee has been increased in view of rise in cost of security at airports and enhanced security deployment requirements.