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India Changes Airline Bankruptcy Rules, in wake of jet leasing dispute

India Changes Airline Bankruptcy Rules, in wake of jet leasing dispute

According to a government notification made public on Tuesday, India has changed its insolvency rules to make leased aircraft released from an exclusion period that begins to apply when an airline declares bankruptcy.

This could help to resolve differences between the country’s bankruptcy laws and international leasing regulations. According to the notification, some provisions of the Indian Bankruptcy Code will not be applicable to transactions involving helicopters, aircraft, and their engines and frames.

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The notification comes at a time when Go Air’s lessors are involved in a legal dispute to reclaim their aircraft after the airline declared bankruptcy. Ramesh Vaidyanathan stated, “With this, India can hope to somewhat repair the reputation it has acquired as a risky country to lease aircraft and engines to.”

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According to a source in the aircraft leasing business and an adviser to a global lessor, the Go First planes’ freeze would have an impact on new negotiations and force domestic airlines to pay larger deposits for leased planes or higher monthly rents.

Indian airline Go First declares bankruptcy and places the blame on this company.(Opens in a new browser tab)

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The nation’s aviation secretary informed India in June that efforts were being made to address discrepancies between international aircraft leasing regulations and its domestic bankruptcy laws.

According to those engaged in the issue, during court procedures where the foreign lessors are attempting to reclaim their planes, it is likely that the implications of Wednesday’s announcement on the Go First case will be analyzed.

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IndiGo to introduce business class Service on its busiest routes 

IndiGo to introduce business class Service on its busiest routes 

After nearly 18 years of dominating India’s aviation landscape with its single-class economy configuration, IndiGo, the country’s largest airline, is set to make a significant leap by introducing business class service on its busiest routes.

The decision comes as IndiGo aims to offer passengers more choices and enhanced comfort amid the backdrop of a burgeoning economy. Set to be unveiled around August, coinciding with the carrier’s 18th anniversary, IndiGo’s “tailor-made business product” promises to redefine the flying experience for its customers.

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This move follows closely on the heels of IndiGo’s recent announcement of acquiring 30 wide-body aircraft, indicating the airline’s strategic expansion and commitment to catering to diverse passenger preferences.

IndiGo’s foray into business class service represents a significant milestone, especially considering its longstanding reputation as a low-cost carrier focused primarily on economy class offerings. With a fleet exceeding 360 planes and operating approximately 2,000 daily flights, the airline’s entry into the business class segment is poised to reshape the Indian aviation industry.

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Currently, Air India and Vistara are the sole providers of business-class seats on domestic routes in India. However, by December 2024, IndiGo will join this exclusive league, introducing its bespoke business class experience tailored to meet the evolving needs of discerning travelers.

Initially, IndiGo’s business class operations will be rolled out on the busiest domestic routes, ensuring passengers enjoy added comfort and luxury during their journeys. Further details regarding the official launch date, specific routes, and promotional offers will be disclosed by August 2024, heightening anticipation among passengers eagerly awaiting this premium service.

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Air India Gives Salary Increments to Staff; Bonus for Pilots

Air India Gives Salary Increments to Staff; Bonus for Pilots

Air India announced on Thursday that it will implement annual salary increments for its staff and introduce an annual target performance bonus for pilots, according to sources. This marks the first appraisal process since the Tata Group took over the airline a little over two years ago.

Chief Human Resources Officer Ravindra Kumar GP revealed that salary increments will take effect from April 1, 2024. Additionally, performance bonus payouts for the fiscal year 2023-24 will be based on both company and individual performance, sources reported.

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Pilots will see an increase in their fixed pay ranging from ₹5,000 to ₹15,000 per month. They will also be eligible for an annual target performance bonus between ₹42,000 and ₹1.8 lakh, contingent on performance metrics.

Cabin crew members will also benefit from an annual performance bonus of approximately ₹25,000. Alongside this, they will receive a standard salary increase for the financial year 2025, effective from April.

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Air India, which employs around 18,000 people, aims to foster growth and transformation, as stated by Kumar. The airline achieved significant milestones in the last financial year, laying a strong foundation for its future. As part of its Vihaan.AI initiative, the airline introduced a contemporary annual performance appraisal process known as “Rise AI” and transitioned to a simplified, market-competitive, and productivity-oriented compensation structure for employees.

However, it was noted that junior first officers will not receive a hike in their monthly fixed pay. Nevertheless, they will be eligible for an annual target performance bonus, with junior first officers receiving ₹42,000 and first officers and commanders receiving ₹60,000 per annum, provided they meet performance expectations.

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Qantas Expands IndiGo Codeshares from Singapore

Qantas Expands IndiGo Codeshares from Singapore

Qantas has broadened its codeshare partnership with IndiGo, India’s largest domestic airline, enhancing travel options between Australia and India. This expansion allows customers to seamlessly connect from Qantas flights in Singapore to IndiGo’s services to both Delhi and Mumbai.

Previously, the codeshare arrangement enabled passengers on Qantas flights arriving in Bengaluru and Delhi to connect onto IndiGo domestic services to 21 destinations across India. Now, travelers can enjoy a more streamlined journey by transferring through Singapore.

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Additionally, the new arrangement allows customers to incorporate overnight stopovers in Singapore into their travel plans before continuing to Delhi or Mumbai. This provides greater flexibility and convenience for those wishing to explore the city or rest before their onward journey.

Qantas passengers traveling on IndiGo flights benefit from the same checked baggage allowance as their flight from Australia and receive complimentary food and beverages. Furthermore, Qantas Frequent Flyers can earn and redeem points on connecting IndiGo flights (with a QF code) between Singapore and India.

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This partnership expansion comes alongside Qantas’s recent announcement of increased flights to both India and Singapore. Specifically, flights between Sydney and Bengaluru will become daily during the peak holiday season, complemented by additional flights from Sydney and Brisbane to Singapore.

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