Financial investment bidders are finally emerging for the beleaguered Air India airline.It has been several years of trying to sell the national carrier, with attempts being blocked for various and sundry reasons.Still on the docket is the airline’s huge losses – as in who will handle them – the new buyer or the government?
Tata Sons, which founded Air India airline in 1932 and then got out of it in 1953, is once again a bidder for the airline, and it has submitted financial bids along with some other key bidders.
SpiceJet Chairman, Ajay Singh, has also made an offer, and some investment funds have also joined Singh in the bidding process to secure the airline. Singh has been a major player in the aviation field for some years now, and his role now in Air India is being watched with great interest.
Security clearance and fixing of a reserve price for the sale are two vital aspects that the government has to resolve. Other factors which have been of concern are the question of how to deal with the massive losses that Air India has accumulated over the years, and how the other assets of the Maharaja line are to be treated, including its real estate and art collection. Ground handling and air catering have also been issues of concern ever since the talk of disinvestment came up.
Over the past few years, several attempts have been made to sell the national carrier, but those attempts were held back for various reasons. One of the major reasons was how to answer the question of who will handle the massive losses – the new buyer or the government?
Staff issues have also been another trouble spot, with questions like who will be retained by the new buyer, and who will be sacked? The unions and associations were at one stage keen to have a say and were even thinking of bidding.
The role, if any, of foreign buyers was also a discussion point, but now it seems the major bidders have come up with financial bids in the form of the participation of Tatas and Ajay Singh.
The new shape of the airline is coming through a route of revival via bankruptcy.The original Jet Airways was based in Mumbai, and the rebirth will see it based in New Delhi.It is looking to commence short-haul international operations of the carrier in the second half of next year with the potential for international flights later on.
The new avatar – or the reincarnation – could materialize as soon as early next year, 2022, although on a modest scale.
The new shape of the airline is coming through on a different route not tried earlier. Jet Airways, once a strong and respected name, will take to the skies through the bankruptcy route of revival.
Initially it will be a domestic carrier only but by late next year, Jet Airways 2.0 may also fly abroad. The new management has not spelled out details of plans for international operations, however, industry sources indicated that the airline could be looking at the Gulf sector for its initial re-run.
While the original Jet Airways was based in Mumbai, the rebirth will see it based in New Delhi. It will continue to have a strong and significant presence in Mumbai as well, its earlier base.
Murari Lal Jalan
The ownership pattern will also be different. Naresh Goet used to be the one to call the shots, but now a consortium led by UAE-based Indian businessman, Murari Lal Jalan, will be in the cockpit seat. Jalan, who leads Jalan Kalrock Consortium (JKC) acquired the grounded Indian airline Jet Airways.
A top executive said the airline is looking to commence short-haul international operations of the carrier in the second half of next year.
Sources say that initially, the new entity will have 50 airplanes in 3 years, with the number anticipated to grow to 100 in 5 years.
Should this plan be implemented, both flyers and businessmen will be quite happy and will be watching the developments of the reborn airline keenly.
The expansion in the air capacity will be a great development, especially since the disinvestment of Air India is still taking more time.
The airline said it has already hired over 150 full-time staff and is looking to onboard another 1,000 employees in the current fiscal year. The hiring will be in a phased manner and will be across categories.
To date, 361 routes have been operationalized under UDAN.The operationalization of this route fulfills the objectives of the Government of India to establish strong aerial connectivity in priority areas of Northeast India.Officials of the Ministry of Civil Aviation (MoCA) and Airport Authority of India (AAI) were present during the launch of the flight operations.
The aerial connectivity between the capital cities of Manipur & Meghalaya has been a long-awaited demand of the people of the region.
Famous for the presence of many well-reputed educational institutions, Shillong is the hub of education for the entire Northeast India. Shillong also acts as the gateway to Meghalaya.
Due to the non-availability of any direct mode of transportation, people were compelled to cover a long 12-hour journey by road to reach Shillong from Imphal or they had to take a flight to Lokpriya Gopinath Bordoloi International Airport, Guwahati, then bus service to reach Shillong. The completion of the entire journey took more than 1 day to reach Shillong from Imphal or vice-versa. Now, natives can easily fly between the two cities by opting for a flight of just 60 mins from Imphal to Shillong and 75 mins from Shillong to Imphal.
Jet Airways may be coming back in a new reincarnation, with funding and staffing from new resources.Akasa Air may take off before the end of this year thanks in large part to billionaire investor, Rakesh Jhunjhunwala.Vistara, Air Asia India, and Air India will also hopefully see some growth for their airlines.
At a time when COVID-19 was – and still is – wreaking havoc with aviation, tourism, and just life in general, comes news that could sound like music to the ears, especially for would-be travelers.
After so much of what has been happening with airlines is all about the losing of millions in dollars and crores and euros – you name the currency – and facing closures, not to mention the disinvestment in the once prized Air India, there are at least 2 airlines are coming on the India scene and in the skies in the not-too-distant future.
There is serious talk of the collapsed Jet Airways coming back in a new reincarnation, with funding and staffing from new resources. As plans seem to be shaping up fast, there are still many nuts and bolts that remain to be tightened before travelers can fly on a full-service airline again.
The India international travel ban has been extended for over another month until June 30, 2021.
Since the international travel ban, limited flights have been allowed into India under various schemes.The Vande Bharat Mission brought home stranded Indians from foreign destinations after the coronavirus struck shutting off borders.Air travel bubble agreements have been signed with 27 countries around the globe.
Initially, the international travel ban was implemented in India on March 23, 2020, when COVID-19 emerged around the globe.
Since then, limited flights have been allowed into the country under various schemes including Vande Bharat Mission flights and air travel bubble agreements. The Vande Bharat Mission was started to bring back stranded Indians from foreign destinations after suspension of regular international flights. The Indian Government launched the Mission, considered to be the world’s largest expatriation exercise.
The Directorate General of Civil Aviation (DGCA), the regulatory body of civil aviation in the country, issued a statement today, Friday, May 28, 2021, that cargo flights and those with special permission will be allowed to operate but regular scheduled commercial services will continue to be suspended through the end of next month in June.
Even as there may be general gloom on the aviation and tourism front, rays of hope are coming now and again, which are very welcome for India and Japan travel.
Vistara airline will launch flights between Delhi and Tokyo starting June 16 of this year. The once-a-week service will operate from Haneda airport in Tokyo flying to New Delhi.The possible glitch, however, is that the number of new COVID-19 coronavirus cases in India continues to break records.
One such development is that Vistara airline, the joint venture of Taj Group and Singapore Airlines (Tata SIA Airlines Limited), is set to start air services from June 16 between Delhi and Tokyo.
Vistara is an Indian full-service airline based in Gurgaon with its hub at Indira Gandhi International Airport. The carrier, a joint venture between Tata Sons and Singapore Airlines, commenced operations on January 9, 2015 with its inaugural flight between Delhi and Mumbai. Its name was taken from the Sanskrit word vistara meaning “limitless expanse.”
The once-a-week service will operate from Haneda airport in Tokyo flying to New Delhi directly under the travel bubble agreement that India has with Japan.
India and Japan have always had a healthy business and strong tourist traffic, and the new service will be welcomed even as normal services may take time to take off.
Former senior official for Air India passes due to COVID-19.S. P. Dutt was instrumental in organizing “Know India” seminars in many parts of the world to promote tourism along with the Department of Tourism and other tourism and travel stakeholders.He will be remembered most for was his wit, humor, and simplicity.
As an Air India senior official, Satya Prakash Dutt knew everything about aviation and also about technology and science, which were his other interests. S.P. Dutt had completed his MS from New York University in Applied Science and was also a Senior Member of the American Institute of Aeronautics and Astronautics (AIAA). His passion for tourism and his pride in Air India was well-known.
But perhaps beyond Air India, what he will be remembered most for was his wit, humor, and simplicity. Always ready with an infectious smile, he had something good to say about everyone, and he was very proud of his two daughters, Barkha and Bahar, who have carved a place for themselves in the media and environmental and ecology sectors.
As the COVID-19 coronavirus appears to winding down with vaccines being administered around the globe, attempts to reignite tourism may actually put a damper on drawing visitors.
– eTurboNews | Trends | Travel News Online
Air India has been in the news recently regarding being sold by the government. Air India, headquartered in New Delhi, India, is the flag carrier airline of the country. It is owned by Air India Limited, a government-owned enterprise, and operates a fleet of Airbus and Boeing aircraft serving 102 domestic and international destinations.
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