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Banks must pay Jet Airways staff’s PF, gratuity: Jalan-Kalrock

Banks must pay Jet Airways staff’s PF, gratuity: Jalan-Kalrock

Banks slowing down Jet airways takeover. Why Indian banks unsupportive to Aviation Industry ?

The successful bidder for Jet Airways, the Jalan-Kalrock consortium, has filed a petition with the National Company Law Appellate Tribunal (NCLAT), saying that the provident fund and gratuity obligations of Jet employees must be covered by the airline’s current financial stability, with the remaining balance coming from the lenders’ share.

Until the date of insolvency graduation in June 2019, the appeal tribunal had ordered the consortium to pay gratuities and provident funds to the airline’s employees on October 21. Around ₹275 crore is the total declared.

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The banks, who already receive an average 95% haircut as part of the decision process, have refused to split the cost of PF and gratuity dues, casting additional doubt on the two-year-old decision deal. The Jalan-Kalrock consortium (JKC) has stated that all claims must be resolved within that amount and that it is not obligated to pay creditors anything more than the total amount of Rs. 475 crores.

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The airline’s cash balance, which is approximately 50 crore, will be used to cover all extra claims that haven’t been taken into account in the authorized resolution plan, with the remaining funds coming from the banks’ stake of the airline, said.

Air India to take legal action and impose fine on unruly passengers, to charge Rs 5 lakh for 1 hour delay(Opens in a new browser tab)

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JKC’s overall obligation to former Jet Airways creditors is set at 475 crores. The resolution plan, which has been accepted by Jet Airways lenders, NCLT, and NCLAT, already clearly lays out the source and method of payments, according to a consortium representative.

In 2020, Jalan-Kalrock was successful in its bid to revive the bankrupt airline through a bank-run insolvency process, but since then, little progress has been made due to disagreements over payment concerns that have arisen between the lenders and the consortium. Employee legal challenges have also slowed down the procedure.

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The consortium offered a price of Rs. 1,375 crores for the carrier, of which Rs. 475 crores would be used to pay stakeholders and Rs. 900 crores would be allocated for working capital and capital expenditure. The consortium must fulfill the plan’s upfront payment requirement of 185 crores within 180 days; that period ends on November 29. Lenders are unlikely to transfer the airline to the consortium without getting their initial payment.

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IndiGo, India’s Leading Airline, Orders 30 Airbus A350-900 Aircraft

IndiGo, India's Leading Airline, Orders 30 Airbus A350-900 Aircraft

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Today, IndiGo, India’s leading low-cost carrier, made headlines by placing its largest-ever order for A350 aircraft. This substantial move follows Air India’s order last year, signaling IndiGo’s strategic expansion into the wide-body aircraft market.

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The Airbus A350, renowned for its advanced technology and spacious design, has become a prime choice among airlines worldwide. IndiGo’s decision to invest in the A350 stems from its growing international route network, where larger capacity and extended range are essential.

Following the announcement, IndiGo’s stock prices surged, reflecting investor confidence in the airline’s ambitious growth plans. The initial order encompasses 30 jets, with options for an additional 70 aircraft in the future. While specific configurations are pending, IndiGo is inclined towards the A350-900 variant, favored by many airlines for its versatility.

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Indian aviation enthusiasts have eagerly welcomed IndiGo’s bold move, anticipating the arrival of the A350-900 aircraft starting in 2027. Furthermore, the airline retains purchase rights for an impressive 70 more A350 family aircraft, signaling its long-term commitment to enhancing its fleet and expanding its global footprint.

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US DOT says Airlines must now pay automatic refunds for cancelled flights

US DOT says Airlines must now pay automatic refunds for cancelled flights

The U.S. Department of Transportation (DOT) has released a final regulation requiring airlines to quickly reimburse passengers with automatic cash refunds when owed, according to a statement made by the Biden-Harris Administration.

Under the new regulation, passengers will find it easier to get refunds when airlines dramatically alter or cancel flights, cause severe delays for checked baggage, or don’t supply the additional services they paid for.

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According to a statement from the Biden-Harris Administration, the U.S. Department of Transportation (DOT) has published a final rule mandating airlines to promptly compensate customers with automatic cash refunds when they are eligible. The new rule would make it simpler for customers to receive refunds from airlines in cases when they drastically change or cancel flights, cause significant delays for checked luggage, or fail to provide the extra services they charged for.

Under the latest rule from the USDOT, passengers are guaranteed refunds in several scenarios:

  1. Canceled or Significantly Changed Flights: Passengers are entitled to refunds if their flight is canceled or significantly altered, including changes in departure or arrival times exceeding 3 hours domestically or 6 hours internationally, departures or arrivals from different airports, increased connections, downgrades in service class, or changes less accommodating to passengers with disabilities.
  2. Delayed Baggage Return: Passengers filing mishandled baggage reports can claim a refund for checked bag fees if their luggage is not returned within specific timeframes after flight arrival.
  3. Unprovided Extra Services: If airlines fail to deliver paid extra services like Wi-Fi, seat selection, or inflight entertainment, passengers can request refunds for those fees.

The final rule streamlines the refund process, ensuring it is:

  • Automatic: Refunds are issued automatically without requiring passengers to request them.
  • Prompt: Airlines must refund credit card purchases within seven business days and other payment methods within 20 calendar days.
  • In Original Form of Payment: Refunds are provided in the original payment method used for purchase.
  • Full Amount: Passengers receive full refunds minus the value of any portion of transportation already used, including government and airline fees.

Suggest banning family seating junk fees and ensuring that parents can travel with their kids at no additional cost. No airline promised to ensure fee-free family seating prior to efforts from President Biden and Secretary Buttigieg last year. Family seating is now guaranteed free of charge on four airlines, and the Department is working on a plan to eliminate family seating junk fees.

Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations. 

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The Nine Freedoms of the Air – Jetline Marvel

The Nine Freedoms of the Air - Jetline Marvel

Most of us travel from one city to another city via road we need to get permission to that specific city if it is in another country like a visa or Road access permission to use its property for revenue purposes to carry passengers and Cargo. Similarly, In the airline Industry, it is also important that the Company have permission to fly and access that country whether it’s for stoppage flying above them, or Operating the passengers within that country This is called Freedom of the Air.

Some countries together they agree with certain conditions to access their Aerospace for to access for the airline to travel above their nation. If the bilateral is done for Their own countries’ airlines or other countries’ airlines. In this chapter, we understand how this thing is carried out. What all the condition has to look into that.  

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The Freedoms of the Air are international commercial aviation agreements (traffic rights) that grant a country’s airline(s) the privilege to enter and land in another country’s airspace. They were formulated in 1944 at an international gathering held in Chicago (known as the Chicago Convention) to establish uniformity in world air commerce. There are generally considered to be nine freedoms of the air.

Most nations of the world exchange first and second freedoms through the International Air Services Transit Agreement. The other freedoms,chase freedom airline miles when available, are usually established between countries in bilateral or multilateral air services agreements. The third and fourth freedoms are always granted together. The eighth and ninth freedoms (cabotage) have been exchanged only in limited instances

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First Freedom:

The basic permission granted to an airline from one country (A) to fly through the airspace of another country (B)

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The Nine Freedoms of the Air - Jetline Marvel

Second Freedom:

The permission for a commercial airplane from country (A) to land and refuel (often called a technical stop) in another country (B).

The Nine Freedoms of the Air - Jetline Marvel

Third Freedom :

The privilege for an airline to transport paying (Revenue) passengers from its home country (A) to another country (B).

The Nine Freedoms of the Air - Jetline Marvel

Fourth Freedom

The rights for an airline to transport paying (Revenue )passengers from another country (B) to the airline’s home country (A).

The Nine Freedoms of the Air - Jetline Marvel

Fifth Freedom

Fifth Freedom (also known as beyond rights): The rights for an airline to transport passengers from its home country (A) to a destination (B), then pick up and carry passengers to other international destinations (C).

The Nine Freedoms of the Air - Jetline Marvel

Sixth Freedom:

Sixth Freedom (Combination of Third & Fourth Freedoms) The right for an airline to carry passengers or cargo between two foreign countries (B and C), provided the aircraft touches down in the airline’s home country (A).

The Nine Freedoms of the Air - Jetline Marvel

Seventh Freedom:

The authorization for an airline to operate flights that start in a foreign country (B), skip its home country (A), and transport passengers to another international destination (C).

The Nine Freedoms of the Air - Jetline Marvel

Eighth Freedom Air

The rights for an airline to transport passengers from one location within a country’s territory (B) to another point within the same country on a flight originating in the airline’s home country (A). This right is commonly referred to as cabotage and is notably scarce outside of Europe.

The Nine Freedoms of the Air - Jetline Marvel

Ninth Freedom Air

The entitlement for an airline from a specific country (A) to begin a flight in a foreign country (B) and transport passengers from one location to another within that foreign country. This concept, also referred to as stand-alone cabotage, distinguishes itself from the traditional aviation definition of cabotage by not directly involving the airline’s home country.

The Nine Freedoms of the Air - Jetline Marvel
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