How Is BLR Airport Redefining Accessibility in Indian Aviation?

Abhishek Nayar

24 Jan 2025

Kempegowda International Airport, Bengaluru (KIAB/BLR Airport) has set a remarkable milestone by becoming the first airport in India to receive Level 1 Accreditation under the Airports Council International (ACI) Accessibility Enhancement Accreditation (AEA) Program. This groundbreaking recognition reflects BLR Airport’s commitment to fostering an inclusive environment that ensures seamless travel for all passengers, including those with reduced mobility and disabilities.

The Significance of ACI’s Accessibility Enhancement Accreditation Program

The AEA Program by ACI is a global initiative aimed at enhancing accessibility and inclusion at airports. It addresses the unique needs of persons with disabilities (PwDs) and older travelers, enabling airports to adopt universal design principles and align with international best practices. The program features three progressive levels of assessment, evaluating airports on strategies, policies, and outcomes that prioritize inclusivity for passengers, visitors, and staff.

BLR Airport’s Level 1 Accreditation highlights its proactive efforts to improve infrastructure, services, and training, setting a benchmark for accessibility in the Indian aviation sector.

Integrating Accessibility Into Core Operations

Accessibility at BLR Airport isn’t just an add-on—it’s embedded into its core operations. A dedicated committee drives initiatives to enhance facilities and services tailored for Persons with Reduced Mobility (PRM) and PwDs. These initiatives include:

  • Infrastructure Enhancements: Continuous improvements to airport facilities ensure stress-free navigation for all passengers, including ramps, elevators, and tactile flooring for the visually impaired.
  • Empathetic Staff Training: Comprehensive training programs equip staff to provide personalized and compassionate assistance to passengers with specific needs.
  • Transportation Options: Inclusive transportation solutions make it easier for PRMs and PwDs to access the airport and navigate their journey.

Notable Accessibility Initiatives at BLR Airport

BLR Airport’s dedication to inclusivity is exemplified by several standout programs and policies:

  • The “B-Included” Program: Focused on creating an equitable and inclusive environment for all passengers and stakeholders.
  • Assistive Device Policy: Designed to sustain diversity and inclusion through the availability of assistive devices for passengers in need.
  • Sunflower Lanyard Scheme: Launched in 2022, this globally recognized initiative supports passengers with hidden disabilities, allowing them to discreetly signal their need for assistance.

These efforts ensure that passengers with accessibility needs experience a smooth and welcoming journey throughout their time at the airport.

Leadership Perspective

Satyaki Raghunath, Chief Operating Officer at Bangalore International Airport Ltd, expressed pride in this achievement, stating, “Receiving ACI’s Accessibility Enhancement Accreditation is a reflection of our steady commitment to making air travel inclusive and seamless for everyone. We have introduced several initiatives over the past few years to improve our accessibility, focusing on universal design principles across our terminals, empowering our staff, and constant collaboration with stakeholders. At BLR Airport, we continue to remain dedicated in advancing our efforts, as we strive to achieve our vision of creating a truly welcoming space for all.”

Setting New Standards in Indian Aviation

BLR Airport’s recognition under the AEA Program marks a new era for accessibility in Indian aviation. By embedding inclusivity into its operations and proactively addressing barriers, the airport is not only meeting the needs of PRMs and PwDs but also setting a precedent for other airports to follow. Its approach ensures that every traveler, regardless of their abilities, feels valued and supported.

As air travel continues to evolve, BLR Airport’s dedication to accessibility serves as an inspiring example of how airports can create environments that truly cater to all passengers. This pioneering effort is a step forward in making Indian aviation more inclusive, equitable, and globally competitive.

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Go First Airways: From Insolvency to Liquidation – A Tumultuous Journey

Abhishek Nayar

22 Jan 2025

The National Company Law Tribunal (NCLT) has officially ordered the liquidation of Go First Airways, marking the end of a challenging chapter for the airline. The decision, prompted by a request from the Committee of Creditors (CoC), underscores the complexities of navigating insolvency proceedings within India’s aviation sector.

The Liquidation Order

On January 22, 2025, an NCLT bench comprising Judicial Member Mahendra Khandelwal and Technical Member Dr. Sanjeev Ranjan declared, “Liquidation is ordered.” This verdict follows months of deliberation and reflects the airline’s inability to revive operations despite efforts under the Corporate Insolvency Resolution Process (CIRP).

A Brief History of the Crisis

Voluntary Insolvency Filing

Go First initiated its journey into insolvency by filing a voluntary plea under Section 10 of the Insolvency and Bankruptcy Code (IBC) on May 2, 2023. The NCLT admitted the plea on May 10, appointing a Resolution Professional (RP) to oversee the airline’s operations and explore possible resolutions. This decision aimed to shield Go First from creditors while offering a pathway to revival.

The Legal Battles Over Aircraft Assets

The airline’s troubles deepened when lessors challenged the moratorium preventing them from repossessing aircraft assets. Despite lease terminations prior to the insolvency filing, the NCLAT upheld the NCLT’s moratorium ruling on May 22, 2023, instructing lessors to seek clarifications.

Ministry of Corporate Affairs Intervention

By October 4, 2023, the Ministry of Corporate Affairs issued a clarification stating that Section 14(1) of the IBC did not apply to transactions involving aircraft and related assets. This paved the way for the Directorate General of Civil Aviation (DGCA) to deregister Go First’s fleet, enabling lessors to reclaim and export their aircraft.

The Path to Liquidation

Asset Deregistration and Operational Hurdles

With the deregistration process completed by early May 2024, Go First was left without a functional fleet. This lack of core operational assets crippled any revival efforts. By September 2024, the CoC acknowledged that the airline’s revival was unviable and decided to pursue liquidation.

Appointment of the Liquidator

The appointment of a liquidator became a focal point in the liquidation process. While concerns were initially raised about the proposed candidate, Shailendra Ajmera, the NCLT approved Dinkar Venkatasubramanian as the official liquidator. Representing the CoC in this matter was advocate Vishnu Sriram, while advocate Diwakar Maheshwari represented the Resolution Professional.

Lessons from Go First’s Fall

The demise of Go First Airways offers valuable insights into the vulnerabilities of the aviation industry, especially in the context of financial distress:

  • Insolvency Challenges: The interplay between insolvency laws and asset recovery, particularly in high-capital sectors like aviation, underscores the need for clear legal frameworks.
  • Operational Dependencies: The loss of critical assets, such as aircraft, can rapidly erode any potential for revival.
  • Stakeholder Coordination: The journey highlights the importance of collaboration among creditors, regulators, and judicial authorities.

Conclusion

Go First’s liquidation marks a significant moment in India’s aviation history, serving as both a cautionary tale and a case study in insolvency resolution. As stakeholders reflect on the airline’s journey, the focus shifts to ensuring that lessons learned pave the way for a more resilient future in the aviation sector.

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Lufthansa Welcomes ITA Airways: A New Era for European Aviation

Abhishek Nayar

21 Jan 2025

After years of meticulous planning and regulatory scrutiny, ITA Airways, Italy's national flag carrier, has officially joined the Lufthansa Group. This landmark acquisition grants Lufthansa a 41% stake in ITA Airways, with the German aviation giant’s sights set on full ownership in the near future. The deal signifies a pivotal moment for European aviation, combining Lufthansa's robust network with ITA's unique market presence to create a more dynamic and competitive global carrier.

The Path to Partnership: Overcoming Hurdles

The acquisition of ITA Airways has been anything but straightforward. Negotiations began in earnest in May 2023 when Lufthansa agreed to purchase a minority stake in ITA. However, the deal required approval from the European Commission, which launched an in-depth investigation into potential competition issues. Despite facing strict regulatory demands and extended discussions, the Commission finally greenlit the deal in November 2024. Lufthansa’s investment of €325 million ($333 million) was completed shortly thereafter, marking the beginning of a new chapter for both airlines.

Carsten Spohr, Lufthansa’s CEO, expressed his enthusiasm, stating:

“We are proud to finally welcome ITA Airways to the Lufthansa Group. Our joint passengers worldwide will benefit from improved offers and optimized connections as early as this upcoming summer flight schedule.”

Strategic Benefits of the Acquisition

Strengthening Lufthansa’s Network

ITA Airways brings invaluable assets to the Lufthansa Group, including its stronghold at Rome Fiumicino Airport, now the group’s southernmost hub. This strategic addition diversifies Lufthansa’s network, granting it greater access to South American and African markets where it previously had limited presence. ITA’s robust connections to North America will also complement Lufthansa’s existing operations.

Milan Linate: A Prominent Role

Lufthansa plans to leverage Milan Linate Airport for short and medium-haul flights. As Europe’s second-largest catchment area economically, Linate holds significant potential to bolster regional connectivity. While its role may not extend to intercontinental routes, its importance in the group’s strategy is evident.

A Collaborative Future: ITA Airways and Lufthansa Group

The integration of ITA Airways into the Lufthansa Group’s ecosystem will be spearheaded by a new Board of Directors, including key executives from Lufthansa:

  • Joerg Eberhart: Chief Executive Officer of ITA Airways and managing member of the Board.
  • Lorenza Maggio: Chief Strategy and Integration Officer, overseeing the transition into the Lufthansa Group.
  • Michael Trestl: ITA Implementation Officer based in Frankfurt.

Eberhart remarked:

“The Company is now stronger and ready to face new challenges in a very competitive market. Thanks to synergies with the Lufthansa Group, we will seize significant growth opportunities.”

The Road Ahead: Ambitions and Challenges

Growth in South America and Africa

With a focus on expanding ITA’s presence in underrepresented markets like South America and Africa, Lufthansa aims to fortify its position as Europe’s leading aviation group. These regions are ripe with potential for new routes and stronger partnerships, enhancing the group’s global reach.

Maintaining Italian Pride

Sandro Pappalardo, ITA Airways’ Chairman, emphasized the airline’s commitment to representing Italy on the global stage. He noted:

“Our goal is to continue representing Italy in the world and to make our passengers prouder than ever to fly with us.”

Conclusion

The inclusion of ITA Airways into the Lufthansa Group marks a significant milestone in European aviation. By combining ITA’s unique market strengths with Lufthansa’s global reach and resources, the partnership promises improved connectivity, increased market competitiveness, and enhanced passenger experiences. As ITA Airways and Lufthansa embark on this collaborative journey, the future of European air travel is set to soar to new heights.

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How Will Spirit Airlines’ $300 Million Credit Facility Shape Its Post-Bankruptcy Future?

Abhishek Nayar

21 Jan 2025

Spirit Airlines has secured a $300 million post-bankruptcy credit facility, a critical step in its efforts to emerge stronger from Chapter 11 bankruptcy proceedings. This funding commitment, supported by certain pre-bankruptcy debtholders, is designed to enhance the airline's liquidity and operational stability as it transitions to a new chapter in its business journey.

The Credit Facility: Key Details

Breakdown of the $300 Million Facility

Spirit Airlines’ new credit facility includes:

  • $275 Million Revolving Credit Loan: Dedicated to bolstering the airline’s working capital.
  • $25 Million Uncommitted Incremental Revolving Credit Facility: Additional liquidity, contingent on specific conditions.

Conditions for Accessing Funds

The credit facility becomes accessible once Spirit Airlines officially exits Chapter 11 bankruptcy and meets other stipulated requirements. According to the United States Securities and Exchange Commission (SEC) filing, the airline plans to use the funds for general corporate purposes, including the operational needs of its subsidiaries.

Interest Rates and Repayment Obligations

The facility bears interest at a variable rate, with options for:

  • Adjusted Term SOFR: Plus 3.25% annually.
  • Alternate Base Rate: Plus 2.25% annually.

Additionally, Spirit Airlines will be required to repay portions of the facility under certain conditions, such as asset sales or changes in control, to maintain compliance with collateral coverage ratios and concentration limits.

Collateral and Liquidity Requirements

Core and Eligible Collateral

To secure the facility, Spirit Airlines pledged a variety of assets, including:

Core Collateral:

  • Slots at New York’s LaGuardia Airport (LGA).
  • At least 14 aircraft engines.
  • Eligible spare parts.

Eligible Collateral:

  • Aircraft (A319, A320ceo/A321ceo, A320neo/A321neo).
  • Slots and takeoff rights at LGA and Ronald Reagan Washington National Airport (DCA).
  • Cash reserves, flight simulators, and ground support equipment.

Eligible aircraft must be appraised within 90 days, while liquidity-related conditions stipulate that the airline must maintain at least $500 million in liquidity at the end of each business day, excluding undrawn amounts from the credit facility.

Pre-Closing Conditions

Before closing the agreement, Spirit Airlines must ensure liquidity of at least $400 million, excluding undrawn amounts from the facility.

Spirit Airlines’ Bankruptcy Journey

Filing for Chapter 11

Spirit Airlines entered voluntary Chapter 11 bankruptcy on November 18, 2024. At the time, the airline reported:

  • A net loss of $308.2 million in its quarterly SEC filing.
  • Cash reserves totaling $593.6 million, including restricted cash.

Asset Sales to Boost Liquidity

Prior to its bankruptcy filing, Spirit Airlines sold 23 Airbus A320ceo and A321ceo aircraft to GA Telesis for $519 million. Of this, $225 million was allocated to the airline’s liquidity reserves.

Transition to an Up-Market Airline

As part of its restructuring, Spirit Airlines aims to reimagine its business model, focusing on premium in-flight experiences to cater to a more discerning clientele.

What’s Next for Spirit Airlines?

Post-Bankruptcy Goals

The $300 million credit facility represents a cornerstone in Spirit Airlines’ plans to:

  • Strengthen its financial footing.
  • Ensure operational continuity.
  • Transition to a higher-tier airline catering to premium passengers.

Challenges Ahead

While the credit facility provides immediate liquidity, Spirit Airlines must navigate:

  • Stringent repayment conditions tied to asset sales and liquidity thresholds.
  • A competitive market landscape as it seeks to reposition itself.

Conclusion

Spirit Airlines’ $300 million post-bankruptcy credit facility signals a significant step toward financial recovery and strategic transformation. With a focus on enhancing liquidity and evolving its business model, the airline’s future hinges on its ability to meet stringent conditions and adapt to changing market demands. Time will tell whether Spirit Airlines can soar to new heights in its post-bankruptcy era.

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Mumbai Airport Soars High: Passenger Traffic Reaches New Milestone in 2024

Abhishek Nayar

20 Jan 2025

Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) has once again solidified its position as a leading global travel hub, achieving remarkable milestones in passenger and air traffic movements in 2024. Managed by Mumbai International Airport Ltd. (MIAL), the airport recorded significant year-on-year growth, underscoring its vital role in India's aviation sector.

Record-Breaking Passenger Traffic

In 2024, Mumbai Airport handled an impressive 5.48 crore passengers, marking a 6.3% increase compared to the 5.16 crore passengers recorded in 2023. This growth highlights the increasing demand for air travel, both domestically and internationally, as travelers flock to Mumbai for business, tourism, and other purposes.

The airport’s busiest single day fell on December 21, which saw nearly 170,000 passengers passing through its terminals. This included 116,982 domestic travelers and 52,800 international passengers, setting a new benchmark for daily passenger movement.

December: A Month of Records

December emerged as the busiest month of the year for CSMIA, with passenger arrivals and departures reaching 50.5 lakh, representing a 3.4% increase compared to the same period in the previous year. The month also saw the airport achieve a milestone of over 8,000 international air traffic movements (ATMs), cementing its status as a preferred gateway for global travel.

Air Traffic Movements Surge

CSMIA handled 3,46,617 air traffic movements in 2024, reflecting a 3.2% growth from the previous year. Notably, the airport achieved its highest-ever single-day ATM records on February 3 and February 10, with 962 movements on both days. This achievement highlights the airport’s operational efficiency and its capability to manage increasing air traffic volumes.

A Thriving Global Hub

The consistent rise in passenger traffic and air traffic movements reaffirms Mumbai Airport’s position as a crucial node in international and domestic travel. The airport’s ability to handle such high volumes of travelers and flights showcases its robust infrastructure and commitment to delivering seamless travel experiences.

Looking Ahead

As one of the busiest airports in India, CSMIA continues to set benchmarks in the aviation industry. With its focus on enhancing passenger amenities, optimizing operations, and expanding connectivity, the airport is well-poised to sustain its growth trajectory in the coming years.

The consistent upward trend in passenger numbers and air traffic movements at Mumbai Airport is a testament to the resilience and dynamism of India’s aviation sector. Travelers and industry stakeholders alike can look forward to even greater milestones as CSMIA continues to soar to new heights.

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Is SpiceJet Facing Turbulence Over Legal Payments?

Abhishek Nayar

20 Jan 2025

In a significant legal development, the Delhi High Court has directed budget airline SpiceJet to pay $2.67 million to aircraft lessor Team France 01 SAS within a week. The order comes as part of a larger outstanding default of $6 million owed by the airline to its lessor.

Court's Directives and SpiceJet's Undertaking

Presiding over the case, Justice Anish Dayal instructed SpiceJet to deposit an additional $335,999 with the court registrar within three weeks. This payment is apart from the immediate $2.67 million settlement. Present in the courtroom, SpiceJet’s chairman and managing director Ajay Singh, along with chief financial officer Joyakesh Podder, provided an undertaking to meet these financial obligations.

The directive follows a summons issued by the court in December 2024, requiring SpiceJet’s top executives to appear in person. The court’s instructions were in response to an application filed by Team France 01 SAS seeking enforcement of a consent order issued on May 29, 2024. This consent order had mandated SpiceJet to pay $6,03,870.82 to the lessor.

Legal Background: A History of Defaults

The legal tussle began in December 2023 when Team France 01 SAS and Sunbird France 02 SAS initiated action against SpiceJet, citing unpaid dues exceeding $20 million. While the airline’s current liabilities stand at approximately $6 million, its inability to fulfill prior obligations has escalated the situation.

In May 2024, the court introduced an interim arrangement requiring SpiceJet to pay $4.8 million in outstanding dues, alongside weekly payments for the use of three aircraft engines. However, SpiceJet defaulted on these payments. Consequently, the court directed the airline to ground the engines and return them to the lessor for inspection.

Despite the court’s order to ground the engines by August 16, 2024, and return them within 15 days, the airline delayed compliance. The engines were eventually returned in November 2024, yet the monetary default persisted.

SpiceJet’s Financial Challenges

SpiceJet’s request to settle dues by issuing listed shares highlights its ongoing cash crunch. The airline has been grappling with multiple disputes involving aircraft lessors and creditors. While attempting to resolve these issues, SpiceJet has relied on internal cash flows to meet statutory obligations since October 2024.

One notable achievement was the clearance of employee provident fund dues totaling Rs.160.07 crore. This move indicates the airline’s effort to rebuild trust and maintain operational stability amidst financial challenges.

What’s Next for SpiceJet?

The Delhi High Court’s latest directive underscores the urgency for SpiceJet to address its financial commitments promptly. Failure to comply with court orders could exacerbate the airline’s legal and operational difficulties. As the airline navigates these turbulent times, stakeholders and passengers alike will be watching closely to see how it regains its financial footing.

SpiceJet’s ability to resolve these issues will determine not only its immediate future but also its long-term viability in the competitive aviation industry.

With Inputs from The Mint

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