Page 14 - Airline Industry

Govt set to make an equity infusion of Rs 300 crore in Alliance Air

The government is set to make an equity infusion of Rs 300 crore in regional carrier Alliance Air, which is facing financial headwinds, according to a senior official. Alliance Air, earlier part of Air India, is now owned by AI Assets Holding Ltd (AIAHL), a special-purpose vehicle formed by the central government. The disinvestment-bound Alliance Air operates around 130 flights daily. In recent months, there have been instances of strikes by pilots to protest against non-restoration of salaries to the pre-Covid level and non-payment of allowance, among other issues. The finance ministry has approved an equity infusion of Rs 300 crore into Alliance Air, the senior civil aviation ministry official told PTI. Specific details could not be immediately ascertained. Flights under 'Alliance Air' brand are operated by Airline Allied Services, which changed its name to Alliance Air Aviation Ltd. The company's authorised capital is Rs 2,000 crore and the paid-up capital is Rs 402.25 crore,

Air India imposes 2 year flying ban on individual for unruly behaviour

Air India has imposed a two-year flying ban on an individual who caused physical harm to two female cabin crew members onboard a Delhi-London flight on April 10, a source said on Friday. The Delhi Police had filed a case against the passenger, identified as 25-year-old Jaskirat Singh Padda from Punjab, on a complaint filed by Air India's cabin crew supervisor. The source on Friday said that an internal committee set up by Air India with respect to the incident unanimously decided that the individual does not deserve a lenient view and banned him from flying with the airline for a period of two years. The individual's behaviour was classified as Level 3 category offence, the source added. There was no immediate comment from Air India. Regulations of the Directorate General of Civil Aviation (DGCA) provide for classifying unruly passenger behaviour into three levels and such people can face flying ban for varying periods. Unruly behaviour such as physical gestures, verbal harassmen

Might move to NCLT against Go First if dues worth Rs 900 cr not paid: TAAI

Travel agents' grouping TAAI on Wednesday said it will consider moving the NCLT against Go First in case the airline does not provide a viable solution to clear its dues estimated to be worth around Rs 900 crore. The Travel Agents Association of India (TAAI) has more than 2,500 members. On Wednesday, the National Company Law Tribunal (NCLT) admitted the airline's plea seeking voluntary insolvency resolution proceedings. "We are waiting for announcements from the airline. In case, there is no viable solution with respect to clearing our dues, we will consider moving the NCLT," TAAI President Jyoti Mayal told PTI. The tribunal has suspended Go First's board and has appointed an interim resolution professional to manage the affairs of the airline. In a letter to Civil Aviation Minister Jyotiraditya Scindia on Monday, TAAI said the travel agents need to be protected and laws regarding refunds need to be reconsidered. The travel agents pay advances to low-cost airlines and all tickets

Go First files suit against engine maker, legal scene shifts to US court

After getting what it had prayed for before the National Company Law Tribunal (NCLT), the legal scene now shifts to a US court where Go Airlines (India) Ltd has filed a suit against the aircraft engine maker Pratt & Whitney.

Go First Saga: Lessors seek to deregister 9 more planes of the airline

As Go First awaits the NCLT verdict on its voluntary insolvency resolution plea, lessors have sought deregistration of nine more aircraft of the crisis-hit airline. In one week, various lessors have approached aviation regulator DGCA for deregistration and repossession of a total of 45 planes of Go First. The National Company Law Tribunal (NCLT) is set to pronounce the order on the carrier's petition on Wednesday. Go First stopped flying from May 3 and aviation regulator DGCA on Monday directed the airline to stop sale of tickets till further orders. Lessors have sought deregistration of nine more planes of the airline, according to an update from the Directorate General of Civil Aviation (DGCA). The airline had 55 aircraft in its fleet as on May 2 when it filed the petition and also announced suspension of operations. On Tuesday, the Wadia group-owned carrier said it will respond to the DGCA's show cause notice in due course and is taking all possible measures to reduce ...

Go Airlines gets portion of aircraft hull insurance premium from insurers

With 50 per cent of its fleet grounded due to the problems with Pratt & Whitney engines, the Wadia group's low cost Go Airlines (India) got a portion of its aircraft hull insurance premium from its insurers, said a top official.

Airbus C295 aircraft for India successfully completes its flight in Spain

The first Airbus C295 aircraft for India has successfully completed its maiden flight in Spanish city of Seville, in a significant milestone towards its delivery by the second half of this year. In September 2021, India sealed a nearly Rs 21,000 crore deal with Airbus Defence and Space to procure 56 C-295 transport aircraft to replace the ageing Avro-748 planes of the IAF. Airbus said on Monday that the tactical aircraft took off from Seville on May 5 at 11:45 am local time and landed at 14:45 pm after three hours of flight. Under the agreement, Airbus will deliver the first 16 aircraft in "fly-away" condition from its final assembly line in Seville by 2025 and the subsequent 40 aircraft will be manufactured and assembled by Tata Advanced Systems (TASL) in India as part of an industrial partnership between the two companies. "This first flight represents a significant accomplishment for the first Make in India aerospace programme. With the Indian Air Force set to become the largest

US govt working on new regulations for airline cancellations, delays

The Biden administration is working on new regulations that would require airlines to compensate passengers and cover their meals and hotel rooms if they are stranded for reasons within the airline's control. The White House said President Joe Biden and Transportation Secretary Pete Buttigieg would announce the start of the rulemaking process Monday. The rulemaking pledge continues a push by the Democratic administration to require airlines to improve customer service, and it comes just weeks before the start of the peak summer travel season. The aim of the rules would be, for the first time, to require airlines to pay compensation beyond a ticket refund and to cover expenses that consumers incur, including rebooking on another flight, if the airline causes a cancellation or significant delay. When an airline causes a flight cancellation or delay, passengers should not foot the bill, Buttigieg said in a statement. Currently, when an airline cancels a flight for any reason, consume

Go Airlines asks firms's tribunal to urgently pass order on bankruptcy plea

Go Airlines asked country's company law tribunal to urgently pass an order on its insolvency plea, citing lessors' efforts to take back planes, per the court hearing

TAFI asks Go First to process refunds using money deposited in credit shell

Amid uncertainty over tickets booked by passengers with crisis-hit Go First, a travel agents' body on Friday urged the carrier to make the refunds from the agents' funds deposited in a credit shell with the airline. The Travel Agents Federation of India (TAFI) has also urged Go First that the ticket refund amount be directly credited to the agents' bank accounts as many passengers are seeking refunds. TAFI, which has more than 1,400 members, in a letter to Go First CEO Kaushik Khona said that thousands of tickets need to be cancelled due to the suspension of flights. Go First has cancelled all flights till May 9 and has suspended sale of tickets till May 15. On GoFirst's website, bookings are available from May 23 but there was no official word on whether the suspension of ticket sales has been extended beyond May 15. "Hundreds of travel agents across the country have placed substantial deposits with your airline in a credit shell to be used for immediate and future bookings and w

Go First locks horns with lessors in a bid to begin bankruptcy hearings

NEW DELHI (Reuters) - Indian airline Go First's effort to start insolvency proceedings has become ensnared in a tussle with aircraft lessors after they asked the aviation regulator to deregister some of its planes as a step towards taking them back.

Lessors seek deregistration of 23 Go First planes to secure their assets

Go First has 54 Airbus aircraft in its fleet and 26 of them were in operation until Tuesday when the airline filed its insolvency application

No-frills carrier Go First extends booking hold-up; NCLT plea today

Lenders' meeting on the crisis remains inconclusive, to resume today

Go First travellers create chaos at Patna airport over flights reschedule

Passengers of Go First created a ruckus at the Patna airport on Wednesday after the Wadia group-owned airline suspended all its flight for three days from May 3 to May 5

Go First insolvency: Spot airfares rise on the airline's top routes

Go First's third busiest route was Delhi-Leh route where the airline was scheduled to operate 66 flights per week this month

Indian Oil to recoup $61 million of fuel sales bill from Go First

NEW DELHI (Reuters) - Indian Oil Corp will recoup $61.14 million of jet fuel sales to cash-strapped Go First by cashing in bank guarantees and is optimistic it will recover a further $6.11 million for unsecured sales made in the past few months, sources said.

Lessors taking steps to secure aircraft they leased to Go First

On Tuesday, the airline filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC) in the National Company Law Tribunal (NCLT)

Engine trouble grounds third of Airbus A220 fleet in Zurich, says Lufthansa

The idling of the narrow-body aircraft is on top of three other "brand new" aircraft with Pratt engines that are also down

One domestic airline on average went belly up every year in three decades

One scheduled airline on an average has gone out of business every year since private airlines took to the skies nearly three decades ago, with Wadia group-owned Go First being the latest carrier battling financial turbulence for survival. The first private airline to go belly up was East West Travels & Trade Link Ltd, which shuttered operations after almost two years in November 1996. The same year, ModiLuft Ltd also went out of business. Since 1994, the year when private airlines took off in the country, at least 27 scheduled carriers have either been shuttered or have been acquired or merged with other carriers, according to official data. While the country's domestic aviation sector is on an upswing with strong traffic recovery post-pandemic, Go First is grappling with severe financial crunch due to non-availability of Pratt & Whitney engines that has resulted in grounding of more than half of its fleet. Three scheduled airlines -- Zexus Air Services Pvt Ltd, which ...

Go First owner Wadia Group has no plans to sell its stake in airlines: CEO

BENGALURU (Reuters) -Go Airlines (India) Ltd owner Wadia Group is completely committed to the airline and had no plans to exit it, the airline's chief executive told Reuters in an interview on Wednesday.