AIX Headquarters to Share Space with Air India in Gurugram

In a strategic move aimed at streamlining operations and enhancing efficiency, the merged entity of Air India Express (AIX) has decided to consolidate its headquarters in Gurugram, sharing the same complex as Air India. While the merger and restructuring have been long-anticipated, a recent email notifying employees of the relocation has sparked discontent, especially due to the short notice and perceived lack of support.

The Merger and Headquarters Consolidation

The decision to merge Air India Express and AirAsia India is part of a broader effort to create a more cohesive and unified airline. The consolidation of headquarters in Gurugram aligns with this vision, intending to centralize administrative functions for better synergy.

Swift Employee Relocation Announcement

Last week, employees of both pre-merged airlines were taken aback by an email outlining the relocation plan. According to the communication, managers and above are expected to move by December 2023, with other roles required to shift by March 31, 2024. The abrupt notice has raised concerns and led to a flurry of reactions among the affected workforce.

Employee Reactions and Considerations

The announcement has left employees with mixed feelings, and many are contemplating their future with the company. A significant portion, reportedly 60-70% of the affected workforce, is considering alternative employment opportunities. The 90-day notice period, though legally binding, has proven to be a considerable challenge for those exploring job transitions.

Perceived Lack of Transparency and Employee Entitlement

Criticism has been directed at the management for the perceived lack of transparency and the short notice period. Employees argue that they should have been informed at least six months in advance to facilitate a smoother transition. Some even speculate that the short notice is a strategic move to facilitate job cuts, as a portion of the workforce may find it impractical to relocate.

Concerns over Support and Relocation Policy

A sore point for many employees is the perceived lack of support from the company regarding the relocation. While a relocation policy is in place, offering financial assistance for incurred costs, employees express dissatisfaction with the expectation that these funds will be recovered from their salaries. This has fueled discontent and added to the challenges faced by the workforce.

Phased Relocation Timeline

The relocation plan unfolds in phases, with CXO levels expected to move by December, mid-level management by January-February 2024, and the remaining staff by March 2024. This phased approach aims to mitigate disruptions to the airline's operations during the transition period.

Strategic Hiring Amidst Relocation

Interestingly, insiders reveal that directives have been issued by the human resource head and CEO to start hiring replacements for those unwilling or unable to relocate. This move suggests a commitment to maintaining operational continuity despite the potential workforce shake-up.

Conclusion

As Air India Express and AirAsia India navigate the complexities of merging into a unified entity, the headquarters relocation has become a focal point of employee discontent. The management faces the challenging task of balancing the need for consolidation with employee expectations and concerns. The coming months will undoubtedly be a critical period for the airline as it strives to create a cohesive workforce in its new headquarters in Gurugram.

With Inputs from Deccan Herald

As Thanksgiving approaches in the United States, airports and airlines are gearing up for what is projected to be the busiest travel weekend ever. With an estimated 30 million travelers expected to take to the skies, industry players are bracing themselves for a surge in demand. Despite assurances from airport authorities and airlines, the challenges of recent years, compounded by the ongoing turbulence in the airline industry, are casting a shadow over the anticipated festivities.

Unprecedented Passenger Numbers and Peak Travel Day

Overview

The Thanksgiving weekend is set to witness an unprecedented number of passengers, with an estimated 30 million individuals expected to fly. The zenith of this travel surge is forecasted to occur on November 26, the day following Thanksgiving, where almost three million passengers are set to take to the skies.

Statistics

According to the Transportation Security Administration (TSA), a record-breaking 30 million passengers are expected to be screened from November 17 through November 28, 2023. Additionally, the Federal Aviation Authority (FAA) predicts Thanksgiving flights to peak at 49,606 on November 22, marking an increase from the 2022 figures.

Contributing Factors to the Surge

Lower Prices and Increased Competition

One significant factor driving this surge in travel is the decline in airfare prices. US authorities report an overall 13% drop in airfares from the previous year. This reduction is attributed to the increased services by US airlines and heightened competition on key routes in recent months.

Airline Expectations

Major airlines, including Delta Air Lines and United, are gearing up for the influx. Delta anticipates carrying between 6.2 million and 6.4 million passengers over Thanksgiving, while United expects 5.9 million, reflecting a 13% increase from the previous year.

Industry Challenges and On-Time Performance Woes

2023 On-Time Performance

Despite the surge in demand, 2023 is shaping up to be a challenging year for the US airline industry. On-time performance has hit record lows, with nearly a quarter of all flights departing late – more than five minutes after the scheduled departure time.

Contributing Factors

Various challenges, including staff shortages, adverse weather incidents, mass cancellations, near misses at airports, and the discovery of counterfeit engine parts in commercial aircraft, have plagued the industry. These issues have contributed to delays and disruptions, raising concerns about the industry's ability to manage the Thanksgiving travel rush effectively.

Independence Day Debacle

The aviation industry's struggles were highlighted during the recent Independence Day period, where thousands of cancellations occurred across the US. Pilot and air traffic controller shortages led to delays and cancellations, with United Airlines facing significant criticism for disruptions at its Denver hub.

Conclusion and Outlook

Anticipated Strain

As Thanksgiving approaches, the US airline industry is poised for an extraordinary test, grappling with the challenges of record-breaking travel amid a turbulent operational environment.

Industry Resilience

While airlines and airport authorities’ express confidence in their preparedness, the holiday season will undoubtedly serve as a litmus test for the industry's resilience and ability to adapt to unforeseen challenges.

Continues Monitoring

With the surge in Thanksgiving travel, industry observers will closely monitor how well the US aviation sector manages the increased demand and addresses ongoing operational hurdles. As the holiday season unfolds, stakeholders will assess the industry's capacity to provide a smooth and efficient travel experience for millions of passengers.

In a bid to enhance travel connections between Russia and North Korea, the Russian Federal Air Transport Agency has invited Russian airlines, including the flag carrier Aeroflot and its subsidiary Aurora, to explore the possibility of launching flights to the North Korean capital, Pyongyang. This move comes as part of Russia's efforts to expand its international connections and overcome the challenges posed by sanctions.

Current Flight Scenario

As of now, the only existing air service between Russia and North Korea is a twice-weekly flight from Pyongyang to Vladivostok, operated by the North Korean flag-carrier Air Koryo. These flights, which resumed in August 2023 following pandemic-related disruptions, are primarily utilized by North Korean construction workers traveling between the two countries.

Challenges and Practical Limitations

Despite the invitation to fly directly to Pyongyang, Russian airlines such as Aeroflot and Aurora may face practical limitations due to fleet constraints. The lack of narrowbody aircraft with sufficient range to cover the over 3,400 nautical miles between Pyongyang and major Russian cities like Moscow and St Petersburg poses a significant challenge. Additionally, the demand for direct flights may not be high enough to justify the deployment of widebody aircraft.

Likely Route via Vladivostok

Given these challenges, Russian carriers may opt to funnel passengers through Vladivostok, a city already well-served by Air Koryo's flights. From Vladivostok, Pyongyang can be easily reached using more suitable narrowbody aircraft like the Airbus A320 or Boeing 737.

Historical Connections

Looking back at historical data, Aeroflot had flights to Pyongyang from both Moscow and Khabarovsk in the 1980s. During the same period, Air Koryo operated non-stop flights to Moscow, with one route continuing to Berlin and the other to Sofia. These historical connections highlight the potential for re-establishing air links between the two countries.

Air Koryo's Role

Currently, Air Koryo is the sole carrier operating at Pyongyang International Airport, running domestic flights to Kalma and international services to Vladivostok and Beijing. The airline faces challenges, including an aging fleet with an average age exceeding 33 years. The recent invitation to Russian airlines could potentially bring about positive changes for Air Koryo, fostering competition and collaboration.

Geopolitical Implications

A closer relationship between Russia and North Korea in the aviation sector may raise eyebrows in the West. However, for Russia, seeking to expand international connections is a strategic move, especially after facing isolation in the aftermath of the conflict in Ukraine.

Impact of Sanctions

The aviation sector in Russia has been significantly affected by international sanctions, leading to difficulties in obtaining spare parts and maintenance services for Airbus and Boeing aircraft. In response, Russian carriers, including Aeroflot, have placed substantial orders for domestically-produced aircraft, reducing dependency on foreign manufacturers.

Conclusion

The potential launch of flights between Russia and North Korea signifies a step towards strengthening international connections for both nations. While challenges exist, historical precedents and the changing geopolitical landscape suggest that increased collaboration in the aviation sector could be on the horizon, benefiting travelers and fostering economic ties between Russia and North Korea.

With Inputs from ch-aviation, Airline Timetable Images, Routes Online, Kommersant

A long-running investigation by Indian financial crime agencies into alleged tax evasion by Middle Eastern airlines has recently focused on Qatar Airways and resulted in a request for documents from the airline and searches of the Indian offices of several Middle Eastern carriers.

The Directorate General of GST Intelligence (DGGI), the Indian law enforcement agency responsible for tax evasion, led the office searches in October, which included searches of Qatar Airways' premises. Saying the focus on the Qatari airline was still in its "very initial stage," a DGGI spokesperson has also told Indian media outlets that the agency had uncovered incidents of tax evasion totalling INR 57 billion (USD 685.1 million) involving over 6,000 fake instances of input tax credit claims between April 2020 and September.

It is unclear whether the figures relate specifically to Qatar Airways or also include the other carriers under investigation.

However, the investigation has gained some prominence in India because of increasingly close trade and investment ties between the two countries, including a reliance on Qatar for liquified natural gas supplies to India. Also underscoring the geopolitical aspect of this is the recent sentencing to death of eight former Indian Navy personnel in Qatar after they were detained and sentenced on unspecified charges in August 2022. The DGGI faces the challenge of investigating while the Qatari government holds several powerful bargaining chips.

What is the Issue?

The searches were in connection with alleged tax evasion by airlines in the import of services from their head offices to Indian branches. The GST regulations state that a foreign airline’s head office and its Indian branch are treated as separate entities.

A statement issued by the finance ministry on October 18 stated that DGGI has detected GST evasion of INR 57,000 crore from April 2020 to September 2023 involving over 6,000 fake instances of input tax credit claims leading to the arrest of 500 people.

The development comes weeks after a Qatari court sentenced to death eight former Indian Navy personnel, who were detained on undeclared charges in August 2022.

Qatar Airways flies to 13 destinations in India, offering a total of 120 roundtrips each week and 24,500 seats in either direction. Other airlines flying into India from the Middle East region include Emirates, Etihad Airways, Air Arabia, Saudia, Air Arabia Abu Dhabi, Kuwait Airways, flynas, Jazeera Airways, flydubai, Iraqi Airways, and Fly Baghdad.

(With Inputs from Hindustan Times & ch-aviation)

Flight operations at Bir Tikendrajit International (BTI) Airport in Manipur’s Imphal were closed for three hours and 20 minutes on Sunday, November 19 following an unidentified flying object (UFO) hovering above the airport.

A senior Airport Authority of India (AAI) official said that the flight operations at the Airport in Imphal were suspended for three hours and 20 minutes from 2.30 PM on Sunday, November 19 afternoon and the flight operations were resumed in the evening as usual after a “thorough checkup about the UFO”. The white-coloured object was visible from the terrace of the ATC tower, and individuals on the ground, including airline and CISF personnel, saw it as well.

The official said that two flights from Delhi and Guwahati have been diverted and three departing Agartala, Guwahati and Kolkata bound flights have been delayed and the flight operations restarted after getting clearance from the competent authority. Nearly 500 passengers of those three flights were stranded for over three hours. One flight to Imphal from New Delhi was diverted to Kolkata and another from Guwahati got delayed for over three hours.

All airport operations were kept on hold till further notice and a NOTAM (Notice to Airmen) of airspace closure was flashed. A NOTAM contains information about the condition or change in any aeronautical facility, service, procedure or hazard, the timely knowledge of which is essential to personnel concerned with flight operations.

The UFO was reportedly sighted by the Central Industrial Security Force personnel and a pilot of a private airliner before his flight was about to depart around 2.20 PM. The operations resumed in the evening after security clearance was given. Airport officials were unable to state what the flying object seen above the airport was. An inquiry is stated to be underway.

Thereafter, the BCAS regional director in Imphal, the DGCA director of air safety in Kolkata and the Joint Action Centre committee comprising Manipur officials gave the go-ahead at 5.45 PM. The Imphal ATC resumed charge of the airspace and aircraft operations restarted at 5.50 PM. The NOTAM was subsequently cancelled.

Unprecedented ethnic violence erupted in Manipur on May 3, following a tribal solidarity rally that turned violent in the Churachandpur district, leading to retaliatory violence between Chin-Kuki-Zo and the Meitei communities across the state. Manipur police have stated that as many as 175 people were killed, and 1,108 others injured while 32 are missing in the ongoing ethnic strife which started on May 3.

The Indian Air Force and the Directorate General of Civil Aviation have begun a joint investigation to learn more about the incident. According to the official, the Indian Air Force Eastern Command in Shillong was informed of the development. Manipur is bordered by Nagaland, Mizoram and Assam, besides sharing an international border with Myanmar to its east.

The Shree Jagannath International Airport in Puri has received a significant boost as the Ministry of Environment, Forest, and Climate Change (MoEFCC) approved the diversion of forest land to facilitate the ambitious project.

According to sources, the MoEFCC has given clearance for 27.85 hectares of deemed forest land, equivalent to approximately 68.81 acres, for the construction of the international airport. 

The airport is slated to be developed on an expansive area of around 1,164.75 acres, encompassing 68.81 acres of forest land, 221.89 acres of private land, and the remaining portion as state government land in Sipasarubali and Sandhapur, located under Brahmagiri tehsil. The private land required for the project comprises 153.78 acres in Sipasarubali and 68.11 acres in Sandhapur.

To proceed with the land acquisition for the airport, the Puri district administration has issued a preliminary notification under section 11 (1) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Individuals are invited to submit objections, if any, by January 3.

“Forest clearance has been obtained for the airport project following the district-level committee reports. While the government land has already been demarcated and a boundary wall constructed around it, the process has begun for the acquisition of private land with the notification. The land losers will be paid compensation after benchmark valuation,” a revenue official of Puri was quoted as saying by The New Indian Express. Notably, no rehabilitation and resettlement is required as the land parcels are free of human habitation.

Work on the airport can start early next year, if every other process, including completion of necessary formalities with all regulatory bodies and government agencies which are a pre-requisite for the in-principle approval, is completed on time, the sources added.

Progress of the Airport

On January 1, 2021, Chief Minister Naveen Patnaik requested Prime Minister Narendra Modi to establish an international airport at Puri which will help promote Jagannath culture as land constraints stalled the expansion of Bhubaneswar airport, which was getting busier by the day due to the high footfall of tourists and pilgrims to Puri, which is about 65 km from the Odisha capital.

The CM sought his intervention to expedite the process during a visit to Delhi in May. Later that month, Naveen, during the flagging off of the Puri-Howrah Vande Bharat Express train by the PM virtually, invited him to inaugurate the airport once it is ready with his support within three to four years.

Sources said the state government has written to the Central government for site clearance after which construction work is expected to be taken up. Notably, the airport is expected to ease travel of the Jagannath devotees across the globe to Puri through direct air connectivity.

In September, the Ministry of Civil Aviation (MoCA) granted site clearance approval for the project. The clearance was obtained exactly a year after the government submitted all requisites to the ministry seeking clearance to set up the airport by the Greenfield Airports (GFA) Policy, 2008.

Sources said the state government is in the process of appointing a consultant for the preparation of a detailed project report (DPR) for grant of ‘in-principle’ approval. The state will have to submit its application along with the DPR for in-principle approval of the steering committee on greenfield airports. As per initial estimates, the airport will be built at a cost of around INR 5,631 crore.

The international airport at Puri was necessitated as it is being developed into a world-class heritage city and Biju Patnaik International Airport (BPIA) at Bhubaneswar has reached its design capacity limit. BPIA handled 3.62 million passengers in 2022-23 to become the 17th busiest (11th among non-metro cities) airport. It is busier than Nagpur, Visakhapatnam, Indore, Udaipur, Thiruvananthapuram and Varanasi. Meanwhile, the Ministry of Defence (MoD) has handed over 160.35 acres of land at Rasgovindpur to the state government for further development and infrastructure augmentation of the World War II era airstrip there.

(With Inputs from The New Indian Express)