Aerospace
Singapore approves the merger of Vistara and Air India and acquires a 25.1% share.
A major milestone for Air India.
Singapore Airlines (SIA) and Tata Sons (Tata) have agreed to merge Air India and Vistara, with SIA also investing INR 20,585 million (S$360 million, US$250 million) in Air India as part of the transaction. This would give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all key market segments1. SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals.
SIA intends to fully fund this investment with its internal cash resources, which stood at S$17.5 billion as of 30 September 20222.
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SIA and Tata have also agreed to participate in additional capital injections, if required, to fund the growth and operations of the enlarged Air India in FY2022/23 and FY2023/24. Based on SIA’s 25.1% stake post-completion, its share of any additional capital injection could be up to INR 50,200 million (S$880 million, US$615 million), payable only after the completion of the merger.
The actual amount will depend on factors including the progress of the enlarged Air India’s business plan, and its access to other funding options. SIA intends to fully fund any additional capital injections with its internal cash resources.
Through this transaction, SIA will reinforce its partnership with Tata and immediately acquire a strategic stake in an entity that is four to five times larger in scale compared to Vistara. The merger would bolster SIA’s presence in India, strengthen its multi-hub strategy, and allow it to continue participating directly in a large and fast-growing aviation market.
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Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “Tata Sons is one of the most established and respected names in India. Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time.
India is the fastest growing global economy, and is projected to become the third largest in the world by 20273. It is also the world’s third largest aviation market. Demand for air travel is surging with passenger traffic expected to more than double over the next 10 years, supported by rising income levels and ongoing investments in its aviation infrastructure. However, India also remains underserved with low international seats per capita, signifying significant growth potential4 .
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Following its acquisition by Tata in January 2022, Air India unveiled a wide-ranging transformation programme to strengthen its foundations and revamp its operations, setting it on the road to recovery and positioning it for growth5.
The combination of Air India and Vistara would bring significant synergies. Air India has valuable slots and air traffic rights at domestic and international airports that are not available to Vistara. With Vistara widely recognised as India’s leading full-service carrier, Air India will benefit from its operational capabilities, customer base, and a strong focus on customer service and product excellence.
Today, Air India (including Air India Express and AirAsia India) and Vistara have a total of 218 widebody and narrowbody aircraft, serving 38 international and 52 domestic destinations. With the integration, Air India will be the only Indian airline group to operate both full-service and low-cost passenger services. It can optimise its route network and resource utilisation, be flexible and agile in capturing demand across market segments, and tap on a larger consumer base to strengthen its loyalty programme.
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This would reinforce its position as India’s largest international carrier and second largest domestic carrier, allow it to offer more options and connectivity for business and leisure customers, and enable it to compete as a leading global airline.
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1Today, SIA and Tata hold a 49% and 51% stake in Vistara respectively. Tata wholly owns Air India, which includes the low-cost carriers Air India Express and AirAsia India.
2In addition to its cash and bank balances of S$17.5 billion, the Group retains access to S$2.2 billion of committed lines of credit, all of which remain undrawn. SIA intends to redeem the 2020 Mandatory Convertible Bonds on 8 December 2022, and cash and bank balances will decline by S$3.86 billion on a pro-forma basis on that date.
Aerospace
Defence Ministry inks Rs 2,890 crore contract for upgrade of 25 Dornier aircraft
The Ministry of Defence signed a contract with Hindustan Aeronautics Limited (HAL) on March 15, 2024 for Mid Life Upgrade (MLU) of 25 Dornier Aircraft along with associated equipment for the Indian Navy at a cost of Rs.2,890 cr.
The MLU for Dornier Aircraft includes an upgrade to incorporate state-of-the-art Avionics Systems and Primary Role sensors. The upgrade would significantly enhance the operational capability of the Dornier aircraft of the Indian Navy to perform Primary Roles of Maritime Surveillance, Coastal Surveillance, Electronic Intelligence, and the development of Maritime Domain Awareness. In addition, this upgrade will also enable Indian Navy Dorniers to carry out Secondary Roles of Search and Rescue, Medical/Casualty Evacuation, and Communication Link.
The Indian-built Dornier is set to undergo aircraft upgrades for future operations. Currently utilized solely for defense purposes, it has now secured new operations under the Air India umbrella, expanding its usage to commercial aircraft as well. Being one of the most economical aircraft for any airline, it’s advantageous due to its Indian origin and suitability for short routes and rugged terrains such as mountains or seas. The D228 aircraft has also established itself as a benchmark for operations, requiring less maintenance compared to other aircraft
Mid Life Upgrade (MLU) of 25 Dornier Aircraft is likely to generate an employment of 1.8 Lakh Man- days during its execution span of 6.5 years. The indigenous upgrade entails supply of major systems and equipments from indigenous sources thus significantly contributing towards “Atmanirbharta” in Defence, in consonance with Make-in-India initiative of Government of India.
Aerospace
Boeing’s three New Crises Spark Concerns, Focuses on Resolving Quality Concerns
In a troubling turn of events for aviation giant Boeing, a series of incidents involving its aircraft have raised significant concerns and prompted urgent actions from both the company and airlines.
These new issues have put Boeing back in the news and made regulators and the public pay even more attention to what’s going on.
LATAM Boeing 787 cockpit seat
One of the most alarming incidents involves Boeing’s flagship 787 Dreamliner jets. Following a report linking an accidental cockpit seat movement to a sudden plunge experienced by a LATAM Airlines plane en route to New Zealand, Boeing swiftly responded by recommending airlines to inspect switches on pilots’ seats.
The company’s directive, issued on Friday, underscores the gravity of the situation, with safety considerations taking precedence. Boeing’s recommendation advises airlines to examine the motorized boeing 787 Dreamliner cockpit seats during maintenance routines and provides instructions on disabling seat-moving motors. This precautionary measure comes in the wake of an incident where 50 individuals were injured during a flight drop, believed to be caused by seat movement.
United Airlines Boeing 737
Moreover, another unsettling incident emerged involving a boeing 737 Oregon, United Airlines flight operated by a Boeing 737-800. Upon landing at Medford Airport in Oregon, a fuselage panel was discovered missing from the aircraft. Although the flight proceeded smoothly and landed as scheduled, the absence of the external panel raises significant safety questions.
United Airlines has pledged to conduct a thorough examination of the plane and address any necessary repairs before returning it to service. The incident adds to Boeing’s growing list of challenges, further amplifying concerns about the integrity and maintenance of its aircraft. The narrative surrounding these incidents evokes a sense of unease within the aviation industry and among the traveling public.
The revelation that a seat switch malfunction could potentially lead to a catastrophic event underscores the importance of rigorous safety protocols and oversight. Boeing’s response, coupled with United Airlines’ commitment to addressing the issue promptly, highlights the collaborative efforts necessary to ensure the safety and reliability of commercial air travel.
A statement from United stated that an external Boeing panel had been discovered missing from the aircraft after it had been parked at the gate. The statement also stated that United will be performing a “thorough examination of the plane and completing all the needed repairs before it returns to service.”
In addition to six crew members, United reported that the aircraft was carrying 139 passengers. At 10:20 a.m., according to the airline tracking website Flight Aware, the flight left San Francisco and arrived in Medford early, landing at 11:36 a.m.
John Barnett, aged 62, a Boeing whistleblower who bravely reported on the poor quality conditions at Boeing facilities, tragically passed away, reportedly due to suicide. However, a close family friend disputes this narrative, asserting that Barnett had expressed concerns about his safety and had foreseen his demise. This unsettling development has left Barnett’s family and friends deeply troubled, leading to suspicions regarding the circumstances of his death. These suspicions have prompted a response from Boeing, as questions arise about the company’s responsibility and potential involvement in Barnett’s passing.
Aerospace
Comac is set to fly to five Southeast Asian countries for a C919 and ARJ21 demonstration tour
Following the successful debut of the COMAC aircraft at the Singapore Airshow 2024, the company has secured new branding rights for its products in the Southeast Asian aviation market. According to sources, the airline is directing its aircraft displays to Malaysia.
A static display and demonstration flight featuring the China-manufactured commercial aircraft C919 and ARJ21 were held on Wednesday at the Sultan Abdul Aziz Shah Airport in Malaysia’s Selangor state.
The event showcased the brand-new C919 and ARJ21 aircraft, both quietly competing in the narrow-body segment market and slightly challenging the Boeing 737 and A320 family aircraft. The ARJ is tailored for regional airports with shorter routes.
C919 and ARJ21’s five-country tour.
This event concluded the C919 and ARJ21’s five-country Southeast Asian demonstration flight tour, which included visits to Vietnam, Laos, Cambodia, and Indonesia.
COMAC is actively seeking an international market alongside China. Currently, the company has amassed over 1100 aircraft orders for the COMAC C919 aircraft.
Throughout the demonstration flights and static displays, the aircraft manufacturer Commercial Aircraft Corporation of China, Ltd. (COMAC) conducted a series of product promotion activities targeting potential customers.
Furthermore, the company aims to expand its airline network in these countries by obtaining regular licenses from their respective national aerospace authorities.
The purpose of the tour was to evaluate the aircraft’s adaptability to various airports and routes in the five countries, assess the ground service equipment’s suitability, test special flight procedures’ feasibility, and highlight the economic viability of these routes. COMAC stated that demonstration flights would lay the groundwork for future market development in Southeast Asia.
ARJ21 can carry 97 seats and C919- 192 seats.
The ARJ21 regional aircraft is designed to accommodate 78-97 passengers with a flight range of 2,225-3,700 kilometers. Meanwhile, the C919 jetliner offers a layout for 158-192 seats and a range of 4,075-5,555 kilometers, as per the company’s specifications.
The C919 completed its maiden commercial flight on May 28, 2023. Since then, China Eastern Airlines, its inaugural customer, has received five C919 aircraft, operating round-trip flights on Shanghai-Beijing and Shanghai-Chengdu routes. COMAC reports that it has safely transported over 140,000 passengers to date.
Aerospace
First-Ever Crash Of Tejas Fighter Jet In Rajasthan’s Jaisalmer, Pilot Safe
Following the crash of the Tejas fighter jet, several questions have surfaced regarding its safety during operations. The aircraft had recently undergone an upgrade to its next version, the Mark 2 version of Tejas, and was anticipated to receive higher orders from the Indian Air Force (IAF). Additionally, India had cleared budget approval for the development of the Advanced Medium Combat Aircraft (AMCA) Project, projected to be India’s first fifth-generation fighter jet aircraft. However, in the aftermath of this crash, the IAF has initiated an investigation to determine the cause of the accident.
A Tejas aircraft belonging to the Indian Air Force encountered a mishap during a training sortie in Jaisalmer, Rajasthan, crashing within the vicinity of a student hostel compound. The incident, occurring around 2 pm, witnessed the safe ejection of the pilot, with no reported injuries on the ground.
This marks the first crash involving the indigenous jet since its maiden test flight over two decades ago in 2001. Notably, the Tejas, a lightweight combat aircraft, was integrated into the Indian Air Force fleet in 2016.
The plane descended onto the grounds near the Lakshmi Chand Sanwal Colony, adjacent to the student hostel in Jaisalmer. Promptly, the Air Force has initiated an inquiry to ascertain the circumstances surrounding the incident.
“The Indian Air Force confirms the occurrence of an accident involving one Tejas aircraft during an operational training sortie in Jaisalmer today. The pilot has been successfully ejected. A thorough investigation, under a Court of Inquiry, has been set in motion to determine the root cause,” stated an official statement by the Indian Air Force.
The first squadron within the Indian Air Force to adopt the Tejas was the esteemed No. 45 Squadron, also known as the ‘Flying Daggers’, in 2016. Subsequently, the No. 18 Squadron joined the ranks in 2020, further bolstering the operational deployment of the Tejas.
Presently, the Indian Air Force has integrated 40 Tejas MK-1 aircraft into its fleet, with an additional 83 Tejas MK-1A fighters awaiting deployment as part of a procurement agreement valued at over ₹ 46,000 crore. Furthermore, in a recent development, the Defence Acquisition Council has given preliminary approval for the acquisition of 97 additional Tejas planes for the force, signaling a continued commitment to indigenous defense capabilities.