Jet Airways' B777-300ERs to be Sold After NCLAT Dismisses Consortium's Appeal

In a significant development in the ongoing saga of Jet Airways' bankruptcy proceedings, the National Company Law Appellate Tribunal (NCLAT) has rejected an appeal by the consortium seeking to acquire the airline. As a result, three Boeing 777-300ERs owned by Jet Airways are set to be sold to special purpose vehicles (SPVs) controlled by the Challenge Group.

Background & NCLT's Previous Decision

Jet Airways, once a prominent player in the Indian aviation industry, collapsed in April 2019, leading to bankruptcy proceedings. The Consortium of Murari Lal Jalan & Florian Fritsch (JKC) emerged as the preferred bidder to acquire the airline. However, the process faced complications, with disagreements arising over the fate of three Boeing 777-300ER aircraft - VT-JEV, VT-JES, and VT-JEM.

The NCLT had earlier ordered Jet Airways' monitoring committee to honor a 2022 agreement for Ace Aviation to purchase the three aircraft. However, the JKC consortium appealed this decision, leading to the recent ruling by the NCLAT on December 22, 2023.

Consortium's Appeal Dismissed & Employee Union's Bid Unsuccessful

The NCLAT dismissed the appeal by the Consortium of Murari Lal Jalan & Florian Fritsch against Ace Aviation VII Ltd. & Ors. The consortium had initially expressed no interest in retaining the B777-300ERs but later shifted its stance. The NCLAT's decision paves the way for the sale of the aircraft to Ace Aviation, controlled by the Challenge Group.

The All India Jet Airways Officers and Staff Association had attempted to thwart the sale, arguing that it would not be in the best interest of Jet Airways to part with the grounded aircraft. However, the NCLAT rejected this bid, emphasizing the need to avoid further deterioration of the aircraft's condition.

Escrow Account for Sale Proceeds

Despite concerns raised by the employees' union regarding pending dues, the NCLAT stated that the sale proceeds would be deposited into an escrow account. The funds will be distributed according to the approved resolution plan, a move aimed at ensuring transparency in the resolution process.

Challenge Group's Perspective

Challenge Group CEO Eshel Heffetz expressed satisfaction with the NCLAT's decision, highlighting the importance of completing the sale promptly. Heffetz emphasized the potential impact on asset value and the commercial viability of the deal if the sale process were prolonged.

Conclusion

The NCLAT's decision to uphold the NCLT's order marks a significant step in the resolution process of Jet Airways' bankruptcy case. The fate of the three Boeing 777-300ERs appears to be sealed, with Ace Aviation poised to acquire them. The resolution's impact on Jet Airways' employees and the airline industry's broader implications remain topics of keen interest as stakeholders navigate the complex bankruptcy proceedings.

With Inputs from ch-aviation

In a significant development for the Indian aviation industry, Air India has proudly taken delivery of its first Airbus A350-900, marked by the arrival of VT-JRA (MSN 554) from Toulouse Blagnac to Delhi. This event signals the initiation of a fleet expansion plan, with 20 A350-900s set to join Air India's ranks.

A Milestone Day: CEO Campbell Wilson's Perspective

Air India's CEO, Campbell Wilson, described the plane's arrival as a "red letter day" for the airline. In his statement, he emphasized that this acquisition symbolizes Air India's commitment to restructuring and achieving new benchmarks in the industry. According to Wilson, it also signifies the resurgence of Indian aviation on the global stage.

Aircraft Origins, Deployment Plans, Routes and Operations

VT-JRA is part of the A350-900s originally manufactured for Aeroflot but left unclaimed due to sanctions. The aircraft is slated to commence revenue service in January, initially operating on domestic routes for crew familiarization before extending its reach to international destinations. Air India plans to welcome an additional four A350-900s by March 31, 2024, expanding its long-haul capabilities.

The specifics of the A350-900's inaugural routes are yet to be disclosed, but Wilson has assured that the information will be made public in the coming weeks. He highlighted the aircraft's "excellent flight economics and state-of-the-art technology," underscoring Air India's dedication to ensuring commercially successful operations.

Fleet Expansion through Merger: Air India and Vistara Integration

Air India's fleet augmentation will receive a significant boost upon finalizing its merger with Vistara, a full-service carrier based in India. Both airlines share the same parent entity, Tata Sons. Once completed, this merger will see Vistara's fleet of 70 aircraft integrated into Air India, further solidifying its position in the aviation market.

Wilson anticipates the merger to conclude in 2024, ushering in a new era of collaboration and synergy between the two entities. This strategic move not only enhances Air India's operational capabilities but also reflects the consolidation of resources within the Tata Sons aviation portfolio.

Conclusion

As Air India welcomes its first A350-900 and progresses towards a merger with Vistara, the airline is poised for a transformative period. The symbolism of this acquisition goes beyond the addition of a new aircraft; it represents a strategic shift, emphasizing resilience, restructuring, and a commitment to excellence in the ever-evolving aviation landscape. With the promise of additional A350-900s and the impending merger, Air India is set to make a significant impact on the global aviation stage in the years to come.

With Inputs from ch-aviation

IndiGo on December 26 announced daily flights between Mumbai, the state capital of Maharashtra, and the pilgrimage town of Ayodhya in Uttar Pradesh starting January 15.

The flight schedule includes two daily flights with flight numbers 6E 5378 and 6E 5379. The first flight departs from Mumbai and arrives in Ayodhya, while the second flight departs from Ayodhya and arrives in Mumbai. Both flights operate daily and are effective from January 15, 2024. The departure time for the first flight is 12:30 and it arrives at its destination at 14:45. The second flight departs at 15:15 and arrives in Mumbai at 17:40.

The announcement comes days after IndiGo said it would be operating direct flights from Delhi to Ayodhya from January 6, and from Ahmedabad to Ayodhya from January 11.

Vinay Malhotra, Head of Global Sales, IndiGo, expressed his enthusiasm, stating, "We are pleased to announce direct connectivity between Ayodhya and Mumbai, complementing our existing routes from Delhi and Ahmedabad. These additions will significantly boost travel, tourism, and trade in the region, contributing to economic growth and providing tourists with direct access to Ayodhya through the extensive 6E network across India and overseas. As India's leading carrier, we remain committed to delivering affordable, on-time, courteous, and hassle-free travel experiences to our customers."

Upon its inauguration, the Ayodhya Airport will become the 86th domestic destination and 118th overall destination, in the airline’s network. The inaugural flight from Delhi will arrive in Ayodhya on December 30, 2023. Subsequently, the commercial operations for a direct flight will commence between Delhi and Ayodhya from January 06, 2024, followed by tri-weekly flights between Ahmedabad and Ayodhya from January 11, 2024. 

The Upcoming Ayodhya Airport

The number of visitors to Ayodhya is expected to rise meteorically following the opening of the Ram temple in the town next month. The temple's construction began in August 2020, almost nine months after a Supreme Court delivered its verdict on the decades old Babri Masjid-Ram Janmabhoomi conflict.

The consecration ceremony at the Ram temple is scheduled for January 22, and various leading personalities from all walks of life have been invited. Before the temple's inauguration, Prime Minister Narendra Modi will be inaugurating the Maryada Purshottam Shri Ram International Airport in Ayodhya on December 30.

The INR 350 crore Ayodhya Airport, built by government-owned Airports Authority of India (AAI) has a runway equipped to handle single-aisle Airbus 320 and Boeing 737 type of aircraft. It received an aerodrome license from the Directorate General of Civil Aviation on December 14. Prime Minister Narendra Modi is expected to inaugurate the airport on December 30.

Development work has been carried out at the airport, including an extension of the existing runway from 1500m X 30m to 2200m x 45m for the operation of Code-C type of aircraft. Among the other additions is a 6250 sq m interim terminal building, which can handle 300 passengers during peak hours, with eight check-in counters, and three conveyor belts. Then there is an air traffic control tower, a fire station, car parking, a new apron for parking three Code 'C' type of aircraft and allied city-side and airside infrastructure, said AAI.

Air India Express Also Inaugurates Flights to Ayodhya

Air India Express, the low-cost subsidiary of Air India, is set to inaugurate services from Ayodhya International Airport, marking its 45th destination and the third operational sector in Uttar Pradesh. The airline plans to commence operations on December 30, offering direct flights to Delhi and convenient one-stop itineraries to various domestic and international destinations. The inaugural flight, IX 2789, is scheduled to depart from Delhi at 11:00 hrs and land in Ayodhya at 12:20 hrs on December 30, 2023. The return flight, IX 1769, will depart from Ayodhya at 12:50 hrs and arrive in Delhi at 14:10 hrs.

Air India Express has also released the schedule for daily non-stop flights between Ayodhya and Delhi, which will be effective from January 16. The schedule includes two flights: Flight No. IX 1590 from Delhi to Ayodhya and Flight No. IX 1592 from Ayodhya to Delhi. IX 1590 departs from Delhi at 10:00 and arrives in Ayodhya at 11:20. The flight frequency is daily. On the other hand, IX 1592 departs from Ayodhya at 11:50 and arrives in Delhi at 12:55. This flight also operates daily.

The Thiruvananthapuram International Airport here will be going 'silent' from January 1, 2024. In a 'silent airport', passengers will be provided a noise-free and peaceful travel experience, an airport statement said on Wednesday, December 27. This move aligns it with silent airports such as Mumbai, Ahmedabad and Lucknow.

"The Silent Airport initiative is to ensure that passengers can enjoy a relaxed auditory experience while they utilise their wait time enjoying their favourite activities without disturbance," a TRV (Kerala) International Airport Limited (TIAL) spokesperson said.

As part of the initiative, the airport will ensure that no vital information for passengers is missed and that TIAL will display flight information in all Flight Information Display Screens across Terminal-1 and Terminal-2, it said.

Only announcements related to changes in boarding gate and the Inline Baggage Screening System will be made at the airport, it added. Emergency and security-related announcements will continue on the public announcement systems per the requirements.

A campaign to sensitise passengers about the Silent Airport initiative of TIAL will also be undertaken on social media handles such as Twitter, Instagram and Facebook, the statement added.

Thiruvananthapuram Airport Getting a Makeover

The phenomenal increase in passenger traffic and the state government’s silence on acquiring land required for terminal expansion have prompted the Thiruvananthapuram International Airport Limited (TIAL) to launch a grandiose development project within the existing facility.

The old domestic terminal (T1) on Shankhumukham’s side will be demolished to create a new world-class domestic terminal. Furthermore, the international terminal (T2) will be expanded with the addition of 50,000 square feet, sources close to TIAL said.

The airport authorities have also submitted a proposal to the Bureau of Civil Aviation Security (BCAS) to provide a special zone for domestic passengers. The approval is expected within a month.

The T1 demolition will begin next year after the work on the additional 50,000 square feet of space at T2 (Chackai side) is completed. This will allow the domestic terminal to be operated temporarily from T2. The master plan for airport expansion was amended to include this proposal, and the revised plan was submitted to the Director General of Civil Aviation (DGCA) and the Airports Economic Regulatory Authority (AERA) for approval.

The plan is expected to be cleared before March 31, 2024. Once it is approved, work on expanding the terminal will begin. Demolition of the domestic terminal will start only after completely shifting domestic operations to T2. 

Nepal Airlines has once again initiated efforts to sell two MA-60s and three Y12s, manufactured in China, by issuing a tender notice for their auction on December 21, 2023. The move comes after several unsuccessful attempts to lease or sell the aircraft, with previous challenges including pressure from the Chinese Embassy and recommendations to sell them for scrap value.

Background

The Nepalese government procured these aircraft on behalf of Nepal Airlines in the early part of the last decade. However, by 2020, the national carrier decided to retire the MA-60s and Y12s due to their perceived unreliability, high operational costs, and unsuitability for local flying conditions. The decision to part ways with these aircraft was driven by financial losses amounting to NPR 2 billion (USD 15 million) incurred by the airline through flying and storing the non-operational planes.

Auction Details

The tender documentation specifies that the five aircraft are being offered on an "as-is-where-is" basis, with no mention of their airworthiness. The two MA-60s, identified as 9N-AKQ and 9N-AKR, and the three Y12s - 9N-AKS, 9N-AKT, and 9N-AKV - are all equipped with intact engines. On-site inspections are available upon prior arrangement.

Aircraft Details

MA-60s

• 9N-AKQ (MSN 1007): Built in December 2013, 3,316 cycles.
• 9N-AKR (MSN 1008): Built in November 2016, 3,415 cycles.

Y12s

• 9N-AKS (MSN 026): Manufactured in June 2014, 2,333 cycles.
• 9N-AKT (MSN 027): Built in March 2015, 1,424 cycles.
• 9N-AKV (MSN 029): Built in September 2015, 1,386 cycles.

Auction Process

Bidders are required to submit their bids by February 4, 2024, at 1300 local time, accompanied by a bank guarantee for 10% of the bid amount, valid for 90 days. The successful bidder will be issued a Letter of Intent (LOI) pending approval from the Nepal Airlines Corporation board. The bidder must accept the LOI within 15 days, sign a contract within 60 days, and deposit the full amount within 30 days of signing the contract. Removal of the aircraft from Kathmandu's Tribhuvan International Airport must be completed within 180 days.

Conclusion

Nepal Airlines' decision to auction the Chinese-manufactured aircraft reflects its commitment to addressing financial challenges and optimizing its fleet. The upcoming auction will determine the fate of these MA-60s and Y12s, with potential buyers considering factors such as maintenance history, airworthiness, and overall operational viability before making a bid. The outcome will shape the next chapter for these aircraft and influence the future direction of Nepal Airlines' fleet management strategy.

With Inputs from ch-aviation

In a recent Securities and Exchange Commission (SEC) filing on December 18, 2023, Hawaiian Airlines disclosed its openness to buyout offers, emphasizing its commitment to shareholder interests. This move comes as Alaska Airlines' planned takeover bid of $1.9 billion faces uncertainties, awaiting shareholder and regulatory approvals.

Hawaiian Airlines' Stance

The SEC filing revealed that Hawaiian Airlines' board, under specific constraints, would consider alternative buyout offers if the proposed acquisition by Alaska Airlines fails to materialize. Despite this openness, the filing stressed that the current focus remains on the agreement reached with Alaska Airlines, viewed as the optimal path forward for the company.

Employee Concerns Addressed

The majority of the questions in the filing pertained to labor-related issues and the potential impact on Hawaiian Airlines employees if the Alaska takeover bid proceeds. According to the scripted answers, employees can expect business as usual until the transaction closes, a timeline estimated to be within 12-18 months from the board's initial approval.

Employee Transition and Benefits

During this interim period, the filing assured employees that pay and benefits would remain unchanged. While specifics about the integration of benefits plans were not detailed, expectations were set for the combined entity to offer competitive pay and benefits, along with enhanced career advancement and geographic mobility opportunities for the workforce.

Operational Transition

The filing confirmed that until regulatory approval is obtained, both Hawaiian and Alaska Airlines will continue to operate as standalone entities. Post-approval, Hawaiian Airlines is poised to become a wholly owned subsidiary of Alaska Airlines, with Honolulu serving as a regional headquarters for the combined entity. The integration will lead to a single air operator's certificate, marking the point where Hawaiian employees transition into Alaska Airlines employees.

Maintaining Union-Represented Jobs

Addressing concerns about job security, the filing emphasized Alaska Airlines' commitment to preserving and expanding union-represented jobs in Hawaii. Specific assurances were given for maintaining pilot, flight attendant, and maintenance bases in Honolulu, as well as airport operations and cargo services throughout the state.

Fleet Planning and Potential Changes

While fleet composition decisions have not been finalized, the filing acknowledged the possibility of changes to the fleet. Speculation surrounds the replacement of Hawaiian's B717-200s with B737 MAX types ordered by Alaska Airlines. The filing highlighted that decisions would be made based on maximizing operational efficiency and customer experience, with pilot allocations governed by joint collective bargaining agreement terms.

Vendor and Contractor Agreements

The filing acknowledged that Hawaiian Airlines would continue working with ground handling contractors and other vendors until the takeover transaction closes. However, uncertainties persist regarding the continuity of these agreements once Alaska Airlines assumes control.

Conclusion

As Hawaiian Airlines navigates through the complexities of the proposed acquisition by Alaska Airlines, the SEC filing provides valuable insights into the company's openness to alternative buyout offers and its commitment to addressing employee concerns. The evolving landscape of the aviation industry will undoubtedly influence the final outcome, shaping the future of Hawaiian Airlines and its role within the broader Alaska Airlines network.

With Inputs from ch-aviation