SpiceJet’s Ajay Singh dilutes his stake by over 10% to raise Rs 3,000 crore despite financial difficulties
Ajay Singh, the founder of SpiceJet, will reduce his stake in the struggling airline by over 10% to raise around Rs 3,000 crore. Despite the dilution, Singh will remain the largest shareholder, with his stake expected to fall to 30-35%. The airline plans to issue new shares to investors to bolster its capital base. SpiceJet, which has been battling financial challenges and operational problems, hopes the capital infusion will help stabilise its operations and attract investors amid strong demand for air travel in India.
Air India Express introduces six new daily direct flights, expanding connectivity across India
Air India Express has expanded its network with six new daily direct flights. The new routes include Guwahati-Jaipur and expanded services on the Chennai-Thiruvananthapuram route. The airline now offers extensive connectivity to new domestic and international destinations, strengthening its operational reach from major hubs such as Chennai, Kolkata and Guwahati.
AirAsia launches new route from Port Blair to Kuala Lumpur with special fares starting from Rs 4,999
AirAsia will operate flights from Port Blair to Kuala Lumpur thrice weekly from November 16, 2024. Special fares can be booked from August 13 to 25, 2024. AirAsia also plans to introduce a “cinematic in-flight experience” to promote destinations across its network. The route will be the airline’s 17th international flight from India.
SpiceJet averts shutdown crisis at Mumbai airport, operations to resume after financial issue resolved
SpiceJet was able to avoid disruptions to its flights from Mumbai International Airport by resolving a financial issue at the last moment. The airport had issued a warning about possible disruptions and then withdrawn it. Persistent financial difficulties, including delayed salary payments and overdue payments, have led to flight delays and other operational challenges for the airline.
Mumbai Airport withdraws passenger warning about possible disruption to SpiceJet operations
Mumbai Airport has withdrawn its passenger alert regarding SpiceJet operations from August 13, 2024. SpiceJet and MIAL have worked together to resolve a minor financial matter and the airport is working to minimize inconvenience to passengers. Mumbai Airport requested passengers to contact SpiceJet’s help desk or call center for flight status updates.
SpiceJet’s engine lessors reject promoter Ajay Singh’s offer to put up personal shares as security for the airline’s liability
Team France and Sunbird France had filed a case in the HC in December, alleging that the airline had failed to pay their overdue debts for over two years. They wanted the court to bar SpiceJet from using their three engines after the lease agreement ended, besides handing them over and paying them compensation.
Traveller complains that Bengaluru Airport uses the same racks for shoes and other items
A social media video showing the same trays being used for shoes and personal items at Bengaluru’s Kempegowda International Airport drew criticism on Monday. Anand Nichani, managing director of Magniflex India, highlighted the hygiene issue and demanded special trays for shoes. The airport responded by claiming that it provides shoe trays, but Nichani noted that they were not available.
Kenyan aviation union announces strike from August 19 over Adani deal
Due to an investment proposal by Adani Airport Holdings at Jomo Kenyatta International Airport, employees of Kenya Airways and the Kenya Airports Authority are planning a strike starting August 19.
SpiceJet postpones June salaries due to pressing financial issues
SpiceJet has deferred June salaries for certain employees, citing financial obligations. The airline was seeking bridge funding to stabilise its operations. Provident fund contributions remained unpaid and job cuts were announced. Despite the fundraising, financial difficulties persisted. SpiceJet planned to raise more capital and was operating at reduced capacity amid liquidity crunch and litigation.
Brazilian aerospace company Embraer is negotiating a takeover with the government, but is seeking market access for its jets
Brazilian aerospace company Embraer is currently negotiating with the Indian government and major corporations to establish a production facility in India. CEO Arjan Meijer stressed that progress depends on ensuring market access for Embraer, which competes with Airbus and Boeing in the regional aircraft segment.
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Air India and Vistara receive DGCA approval to integrate maintenance
Tata group airlines Air India and Vistara have received DGCA approval to merge their aircraft maintenance activities. This strategic move aims to enhance Air India’s technical capabilities and rationalise resources. It marks a step forward in merging the two airlines into a single entity, which will ultimately improve maintenance and operational reliability.
India wants to boost helicopter production, says aviation minister
Indian Aviation Minister Kinjarapu Rammohan Naidu introduced the Bhartiya Vayuyan Vidheyak Bill, 2024 to strengthen India’s aviation sector. The bill is designed to boost helicopter production and add seaplanes to air travel options. The minister highlighted India’s untapped potential in the helicopter industry and addressed concerns about language limitations in the text of the bill.
Aviation Minister promises to get rising airfares under control and assures balanced approach
The government wants to make air travel affordable and accessible, said Aviation Minister Kinjarapu Rammohan Naidu. Introducing the Bhartiya Vayuyan Vidheyak Bill 2024, he stressed the need for a balance between passengers and airlines. Plans for an online grievance mechanism were unveiled, along with a reaffirmation of commitment to the Regional Connectivity Scheme.
Air India and Vistara receive DGCA approval to integrate aircraft line maintenance
The two airlines, part of the Tata Group, have received Civil Aviation Requirement (CAR) 145 approval from the Directorate General of Civil Aviation (DGCA) to integrate their aircraft line maintenance activities. Vistara is a joint venture between Tatas and Singapore Airlines.
Air India suspends all flights to Tel Aviv due to tensions in the Middle East
In an official statement, Air India assured passengers with confirmed bookings to and from Tel Aviv that they would receive a full refund. The airline also stated that it is closely monitoring the situation and will provide updates as and when required.
Government introduces new reforms to strengthen MRO sector, says Civil Aviation Minister Rammohan Naidu
A key reform is the new GST rate of 5% on all aircraft components and engines, which will come into effect from July 15, 2024. This replaces the previous range of GST rates – 5%, 12%, 18% and 28% – which had led to operational challenges and problems in GST accumulation. “This historic decision simplifies the taxation process and is expected to help the MRO industry reach a valuation of $4 billion by 2031,” Naidu said.
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