Dubai bans Air India Express for 15 days for carrying Covid positive flyer

 Dubai authorities have banned all Air India Express flights for 15 days for carrying a passenger who has been diagnosed with Covid-19.

Following the ban, Air India Express has rescheduled all Dubai bound flights to Sharjah, an airline spokesperson said. The passenger was carried on the Jaipur-Dubai flight on 4 September.

In a letter to the airline, the Dubai Civil Aviation Authority has said that it is the second instance that the airline has flown a Covid-19 positive passenger.

"You are aware of our previous intimation made to you by our letter dated 2nd September 2020 for boarding a passenger with a Covid-19 positive test result, who endangered the other passengers on board and also caused a serious health risk.

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Boarding a passenger with Covid-19 positive test result for the second time is contrary to and is in violation of the laid down procedures and/or protocols relating to air travel to and from airports in the Emirate of Dubai, during the Coronavirus SARS Cov2 pandemic.

Therefore, all operation of Air India Express to Dubai Airports is temporarily suspended, for a duration of 15 days, effective from 18th September until 2nd October," the Dubai Civil Aviation Authority informed the airline.

In August, Air India was banned from operating flights to Hong Kong for two weeks for "carrying too many passengers infected with Covid-19.”

The Hong Kong government had acted after 11 passengers on Air India flight 314 from Delhi on August 14 tested positive for the coronavirus, with officials blaming poor preflight testing for the infection.

Govt weighs dropping debt condition in plan to sell Air India: Report

 India is proposing to drop a condition that the winning bidder for Air India Ltd. will have to take on $3.3 billion of aircraft debt, people with knowledge of the matter said, as the government struggles to sell the loss-making carrier kept afloat by taxpayer-funded bailouts.

Prime Minister Narendra Modi’s administration is being advised to drop the rule on concern it will deter buyers, the people said, asking not to be identified as the proposal isn’t public. A group of bureaucrats has vetted the plan, and under the new proposition, potential buyers will be allowed to bid on the enterprise value and not on the entity value, the people said.

A renewed attempt to sell Air India, which hasn’t made money since 2007, has been hurt by the pandemic, forcing the government to keep extending a deadline to bid. The offer, announced in January, was sweetened to pass on only the debt related to plane purchases to the new owner. The airline had $8.4 billion in total debt at the end of March, 2019 and posted a loss of $1.2 billion that year -- its highest ever.

Despite the losses, the airline has some lucrative assets which include prized slots at London’s choked Heathrow airport, a fleet of more than 100 planes and thousands of trained pilots and crew. The airline will have to shut down if it can’t find a buyer, Aviation Minister Hardeep Singh Puri told the parliament last year. The new proposal sweetens the deal.

A spokesman for the aviation ministry referred queries to the Department of Investment and Public Asset Management, a unit of the Finance Ministry. A finance ministry spokesman wasn’t immediately available for comment.

At least two previous attempts to sell the airline -- once about two decades ago and another in 2018 -- have flopped. In 2001, Singapore Airlines Ltd. dropped its bid for a stake in Air India, citing political opposition as one of the reasons. The Southeast Asian carrier was seeking a 40% stake with India’s Tata Group.

Deadline Extension

Potential buyers this time have requested the government to extend the deadline to submit initial bids due to the coronavirus pandemic, the government said last month. Tata SIA Airlines Ltd, a joint venture between Singapore Airlines and Tata Group which operates under the brand Vistara, is evaluating a possible bid, its chairman Chairman Bhaskar Bhat said earlier this year.

IndiGo, India’s biggest airline that’s operated by InterGlobe Aviation Ltd, showed interest in Air India’s international operations and low-cost carrier Air India Express in a previous offer to sale, but it pulled out saying the no-frills airline is unable to buy and turn around Air India’s operations in their entirety.

Indian officials met with as many as nine companies during roadshows to gauge interest in a stake sale including British Airways’ parent IAG SA, IndiGo, SpiceJet Ltd as well as the Tata Group, Bloomberg News reported earlier this year.

Crew getting substandard Covid-19 protective gear in flights: Air India

Air India crew members are being provided with substandard, ill-fitting and flimsy personal protective equipment (PPE) on special flights being operated during the lockdown, a union of the airline's pilots complained to Civil Aviation Minister Hardeep Singh Puri on Monday.
With India under a 21-day lockdown till April 14 to curb the spread of coronavirus, all domestic and international commercial passenger flights have been suspended for this period
However, carriers such as Air India have been permitted by the Directorate General of Civil Aviation (DGCA) to fly special flights to transport test kits, medicines, relief material and Indians coming from abroad or foreigners going to their countries.
"Our pilots and cabin crew are being provided substandard, ill-fitting and flimsy PPE that tear/disintegrate easily on rescue flights. Sanitisers are not provided in sufficient quantities and disinfection processes are short of industry best practices," the Executive Pilots Association (EPA) said in a letter to Puri.
"These inadequacies compound the chances of viral exposure and equipment contamination - and may even lead to a community (Stage 3) transmission of COVID-19 infection within crew members, passengers and the public at large, since most reside in large residential societies," it said.
The EPA stated that Air India's medical services department has chosen to "lock its doors and wash its hands off" the flying crew amid the pandemic.
As the carrier's medical services department has decided to work from home and limit its services to just phone calls, the association requested the minister that the department's doctors, ambulances and infrastructure be made available 24x7 to support the flying crew.
"This is the minimum level of support expected from an organisation that sends its employees to a biohazard frontline," it added.
The union also requested Puri to issue directions so that at least one senior executive each from medical services, personnel and finance departments is onboard each special flight to boost the crew's morale and gain a better understanding of field requirements.
Taking senior executives of other departments on rescue flights would also lead to creation of more efficient work processes related to the COVID-19 crisis, "which are non-existent at this time", the EPA noted.
The union said there is no additional insurance policy to cover any risk related to COVID-19 for pilots and cabin crew members who are operating these rescue flights.
According to the union, families of pilots and crew members have been left "extremely anxious and vulnerable" as the insurance companies may invoke the force majeure clause in case there is mass COVID-19 outbreak to not pay any money.
Force majeure is a clause in contracts which frees the parties from liability or obligation on account of extraordinary event or circumstance beyond their control.
The EPA said, "Our flying-related allowances, comprising 70 per cent of our total emoluments, remain unpaid since January 2020... To add insult to injury, we have also recently been informed by our management of a substantial pay cut, while in the midst of the above mentioned COVID-19 rescue operations!"
During the last few weeks, Air India has operated multiple flights to coronavirus-hit cities such as Wuhan in China and Rome in Italy to bring back Indians stranded there.
Between Tuesday and Friday, the national carrier will be operating nine flights to Frankfurt from Delhi and Mumbai to fly back Germans who are stranded in India amid the coronavirus lockdown.
The number of coronavirus cases in India rose to 1,071 and the death toll climbed to 29 in India on Monday, according to the Union Health Ministry.
Air India to conduct eight cargo-only flights on Tuesday

Air India will undertake eight flights on Tuesday to transport cargo across various cities of the country amid the 21-day lockdown imposed due to the coronavirus pandemic, said a senior airline official on Monday.
"As required by the civil aviation ministry, Air India would be conducting three flights using the same A320 aircraft on Mumbai-Delhi route, Delhi-Guwahati route and Guwahati-Mumbai route," the official stated.
The other three flights with cargo would be flying using another A320 aircraft on Delhi-Hyderabad route, Hyderabad-Chennai route and Chennai-Delhi route, the official noted.
As India is under a 21-day lockdown from March 25 to curb the spread of the coronavirus, all domestic and international commercial passenger flights have been suspended for this period.
However, cargo flights, special flights conducted with the approval of the Directorate General of Civil Aviation (DGCA), offshore helicopter operations and medical evacuation flights have been exempted from the flight ban.
The official from Air India stated: "Another A320 aircraft would be used to fly cargo from Chennai to Port Blair. The plane would return the same day to Chennai."
India is reeling under the coronavirus pandemic that has infected 1,171 people and killed 29 people till now in the country, according to the Union health ministry.

If I was not a minister today, would be bidding for Air India: Piyush Goyal

As the government works on divesting debt-laden Air India, Union Minister Piyush Goyal on Thursday said if he was not a minister, he would be bidding for the airline.
Air India has been in the red for long and the government is now in the process of finalising the contours for its disinvestment.

Responding to a query about proposed disinvestment of Air India, BPCL and other companies, Goyal said in the first term, the government had inherited an economy which was in pretty terrible shape.
Steps were taken to put the economy back in shape and if the government had looked at divesting these jewels, it would not have got a great value.
He was talking at a session on 'Strategic Outlook: India' at the WEF 2020 here.
"If I wasn't a minister today, I would be bidding for Air India. It has some of the best bilaterals the world over... a well managed and efficient Air India with lot more good aircraft put in using these bilaterals is nothing short of a gold mine to my mind," Goyal said.
Bilaterals refers to an agreement between two countries that allows each other's airlines to operate services with a specific number of seats.
Goyal holds the portfolios of Railways as well as Commerce and Industry.
"India today is a land where you have equal opportunity, you can work with integrity...," the minister said, adding that he thinks a good job has been done in cleaning up the banks and strengthening them.
The Reserve Bank of India (RBI) and the government have taken various measures to address bad loan woes and other issues at public sector banks.
"I do hope that everybody in the room does not have an impression that public sector banks haven't done a good job. World over and if I may take the example of the world's biggest economy, way back in 2008 and 09, it was not government banks that caused the economic collapse, it was all private banks.
"We in India, enough private banks that have not done us great glory. On the contrary, if you ask me, banks which have been run by the government for 30-40 years, they have done some great service to the nation," Goyal said.

Govt likely to miss disinvestment target, expects Rs 67,000-crore gap

The government may miss its disinvestment target of Rs 1.05 trillion for 2019-2020 by a wide margin, as its plans to sell Bharat Petroleum Corporation (BPCL), Container Corporation of India (Concorp) and Air India are unlikely to conclude by March-end.
"Government has to respond to what the potential bidders ask for. So, sometimes they ask for time to examine the financial statements. Sometimes, they want to do a physical due diligence," said a ministry official who didn't want to be named.

This development comes at a time when the government's fiscal deficit has touched 115 per cent of the Budget estimate for November, and is likely to breach the fiscal deficit target unless there is significant pick-up in revenue collection or government's asset monetisation plans.
The government has been planning to 53.3 per cent stake in BPCL to a strategic buyer, which was valued at Rs 56,480 crore as of latest market prices on the exchanges.
The government's 31 per cent stake in Concorp--earmarked for the strategic sale--was valued at Rs 10,724 crore as per latest market prices. The total proceeds from these sales can bring in 67,204 crore of proceeds to government exchequer, without taking into account the premium that the government can command on these assets from the strategic bidders.
The above estimate also doesn't take into account the possible proceeds the government can extract from its sale of stake in the unlisted Air India, which incurred net losses of Rs 8,556 crore in 2018-2019 (provisionally estimated). So far, the government has managed to only realise Rs 17,364 crore from its divestment plans for 2019-2020, as against its Rs 1.05 trillion target.
In November last year, the government approved strategic stake sales in BPCL and Shipping Corporation of India (SCI), as well as 31 per cent stake sale in Concorp. At latest market prices, SCI's 64 per cent -- that is proposed for strategic sale -- was valued at Rs 1,867 crore.

Without buyer, Air India might be forced to shut down by Jun 2020: official

Struggling Air India might be forced to shut down by June next year unless it finds a buyer as "piecemeal" arrangements cannot be sustained for long, according to a senior airline official.
Amid continuing uncertainty over the fate of the national carrier, the official said there is also need for funds to restart operations of 12 grounded narrow-body planes.

The airline has a debt burden of around Rs 60,000 crore and the government is still working on the modalities for the disinvestment.
Sounding alarm bells, the official said Air India might well go Jet Airways way if a prospective buyer does not come on board by June next year.
With government leaving the debt-ridden airline to fend for itself by refusing to inject funds any more amid its privatisation plans, the airline is "some how" keeping it afloat with peace meal arrangements, which are unlikely to sustain for long, the official said.
As per the government, it has infused funds to the tune of Rs 30,520.21 crore in the flag carrier from financial year 2011-12 till December this year.
Under the turnaround plan approved by the UPA regime in 2012, the airline was to get financial assistance of Rs 30,000 crore over a 10-year period.
"We had sought Rs 2,400 crore sovereign guarantee to mop up funds for meeting operational requirement. But the government has provided guarantee only for Rs 500 crore.
"We are some how managing the operations at present and at best we can sustain this situation till June. If a buyer does not come by that time, we will have to shut shop," said the official on condition of anonymity.
After more than 25 years of flying, full service carrier Jet Airways shuttered operations in April due to cash crunch.
In 2018-19, Air India's net loss is provisionally estimated to be Rs 8,556.35 crore.
Besides, it has a total debt of Rs 60,000 crore, half of which has already taken out of the books and parked in the special purpose vehicle, Air India Asset Holding Ltd.
Air India spokesperson was not available for comments.
The Air India Specific Alternative Mechanism (AISAM) has approved re-initiation of process for the the government's 100 per cent stake sale in Air India along with Air India Express and the carrier's stake in joint venture AISATS.
The government is likely to issue Expression of Interest (EoI) for the stake sale in the fourth quarter of the fiscal.
According to the official, it would take "at least" six months to complete the transaction in the eventuality of an investor coming on board, provided the sale process kick starts early next month.
At the same time, the official did not sound very hopeful of the government getting an investor in such an "economic situation," which has also affected the domestic aviation industry.
Domestic air traffic, which is one of the parameters for gauging the health of the industry, grew only 3.86 per cent in the January-November period of the year as against an impressive 18.60 per cent growth in 2018.
Response to the recent road shows in Singapore and London for Air India disinvestment was reportedly "tepid".
The official said that currently 12 narrow-body Airbus A320 planes are on the ground for want of engine replacement and are unlikely to be back in operations in the immediate future.
"We need at least USD 150 million (about Rs 1,100 crore) to get new engines for these 12 planes. With adequate funds not available even for normal operations, it looks difficult we will get funds for engine replacement and make these planes operational any soon," the official said.
However, the official said that seven of the eight wide-body planes, which were grounded for engine and other engineering related issues, are back in operations. The eighth one is expected to start flying soon.
"We plan to deploy this to cater to to the new Mumbai-Stansted (London region) route, which we are looking to launch from February next year,' he said.
The new route would have three times per week services and bookings would open soon.

Post Centre's guarantee, Air India pays November allowances to 1600 pilots

Cash-strapped Air India on Friday paid flying allowance for November to its around 1,600 pilots, a source said days after a section of them sought immediate payment of the pending amounts.
Flying allowance, which constitutes between 50-80 per cent of a pilots' salary, is generally paid in the first week of a succeeding month.

"The airline has paid us our flying allowance for the month of November. As per norms, they should have been paid in the first week of this month," a pilot told PTI.
Details about the amount paid as allowances could not be immediately ascertained.
Air India has around 1,600 pilots and all of them have received the payment, he said.
Last week, the government provided a Rs 500-crore guarantee to the national carrier to help it secure fresh funds for operational requirements.
This was against a request for Rs 2,400 crore sovereign guarantee for raising funds.
According to the government, it has infused funds to the tune of Rs 30,520.21 crore in the flag carrier from financial year 2011-12 till Dec 5.
The Indian Commercial Pilots Association (ICPA), a grouping of the carrier's pilots who operate narrow-body planes, had demanded clearing of their legitimate dues without any delay.
"We have never received our salaries and flying allowance on time, in the recent past 2-3 years. Flying allowance constitute 70 per cent of pilots pay package and we are facing severe financial constraints due to delay in (payment of) flying allowance," the grouping said in a letter, dated December 23, addressed to Minister of State for Civil Aviation Hardeep Singh Puri.
The source said flying allowance of the senior-most pilots account for 80 per cent of their salaries while at the mid-level this allowance is 70 per cent.
For the junior-most pilots, the ratio of the salary and flying allowance is 50:50.
As the government works out the modalities for the sale of the national carrier, ICPA had also warned that they are in no position to work amid uncertainty over the airline's future.
Recently, Puri said that Air India would have to shut business if it is not privatised.
Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore and its debt stands over Rs 58,000 crore.
The Air India Specific Alternative Mechanism (AISAM) has approved re-initiation of process for the the government's 100 per cent stake sale in Air India along with Air India Express and the carrier's stake in joint venture AISATS.

Air India stops issuing tickets on credit to govt bodies owing over Rs 1 mn

Debt-laden Air India has stopped issuing tickets on credit to officials of various government agencies such as the CBI and the Enforcement Directorate, which owe it more than Rs 1 million each, a senior official of the national carrier said on Thursday.
While disinvestment-bound Air India's net loss in 2018-19 was around Rs 8,556 crore, its current total debt is over Rs 60,000 crore.

"Various agencies, including the Central Bureau of Investigation, Enforcement Directorate, Information Bureau, Central Labour Institute, Border Security Force and the Indian Audit Board, have been told that tickets would not be issued to their officials on credit. Each of these agencies owe more than Rs 1 million to the national carrier," the senior official said.
In total, these government agencies owe around Rs 268 crore to the national carrier, he said, adding that "around Rs 50 crore has been recovered from these agencies by the airline".
"Officials of (aforesaid) government agencies can purchase tickets like any other ordinary customer. They would not be issued any tickets from here on credit," the official added.
On December 5, Civil Aviation Minister Hardeep Singh Puri had told Parliament that the preparation of Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EoI) for Air India disinvestment was in the process.

AI pilots' union urges govt to allow members to quit without serving notice

Flagging concerns over unpaid dues, an Air India pilots' union has urged the government to allow their members to quit the debt-laden carrier without serving notice period.
As the government works out the modalities for the sale of the national carrier, the Indian Commercial Pilots' Association (ICPA) has also warned that they are in no position to work amid uncertainty over the airline's future.

The grouping represent nearly 800 Air India pilots who fly narrow body planes.
They have written a strongly-worded letter to Minister of State for Civil Aviation Hardeep Singh Puri regarding their dues.
"...your statement that if Air India is not privatised by 31st March 2020 then Air India will be shut down, is a matter of concern," the letter said.
Citing the uncertainty over the airline's future, the grouping asked the minister to ensure that they "are not treated like bonded labour and allow us to quit Air India without serving the notice period and clear all our dues immediately".
The notice period is six months.
Air India has a debt burden of more than Rs 58,000 crore.
The ICPA has also asked for clearing their legitimate dues without any further delay.
In a warning, the grouping said, "our patience is running thin and we are in no position to continue working with uncertainty looming large at Air India".
"We do not want to face the same fate as other employees of 21 private carriers that have shut down and further add to the rising unemployment in India," the letter, dated December 23, said.
As per the letter, they are yet to receive the flying allowance for October.
"We have been living with uncertainty for the past 2 -3years, and as a result, many employees have defaulted on their loan and other payments. This has greatly affected our livelihood and our families," it added.

Air India seeks Rs 2,400 cr guarantee from govt to raise fresh funds

Facing acute financial crunch, Air India has sought Rs 2,400 crore guarantee from the government to raise fresh funds to mainly meet its operational requirements, according to airline officials.
One of the officials said there is a delay in payment of salaries for the month of November and is expected to be paid on Thursday.

The government is in the process of finalising the contours for divestment of debt-laden Air India.
The officials said the airline has asked for Rs 2,400 crore sovereign guarantee in order to raise money to mainly meet its operational requirements.
They said the amount of Rs 2,400 crore is part of the Rs 7,600 crore guarantee that was to be provided to the airline in the current fiscal.
An Air India spokesperson did not offer any comment on the issue.
On November 27, Minister of State for Civil Aviation Hardeep Singh Puri told the Rajya Sabha that interests of Air India employees would be protected and there would be no job loss till its privatisation.
"Your airlines would have to be closed down, unless not privatised," he had said.
Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore.
The Air India Specific Alternative Mechanism (AISAM) has approved re-initiation of process for the the government's 100 per cent stake sale in Air India along with Air India Express and the carrier's stake in joint venture AISATS.
The national carrier received an equity infusion of Rs 30,520.21 crore from financial year 2011-12 till date, Puri told the Lok Sabha on December 5.
The major components of the financial package for 2018-19 included a cash support of Rs 3,975 crore to Air India, inclusive of Rs 1,630 crore already infused in the airline in 2018-19.
Another component was for providing a "government guarantee of Rs 7,600 crore, inclusive of Rs 3,000 crore already provided to Air India in 2018-19, to raise new debt for payment of stretched liabilities", he had said.
In April 2012, the then central government had approved a Turnaround Plan (TAP)/ Financial Restructuring Plan (FRP) for reviving Air India, which has been in the red since merger of Indian Airlines in 2007-08.

Fuel cost, forex rate variation led to Rs 4,685 cr loss for Air India: Govt

Increase in fuel costs and impact of foreign exchange rate variation were two major reasons for Air India's operating loss of Rs 4,685 crore in 2018-19, Civil Aviation Minister Hardeep Singh Puri said on Thursday.
"Aviation Turbine Fuel (ATF) costs increased from Rs 7,363 crore in 2017-18 to Rs 10,034 crore in 2018-19 i.e. an increase of almost 28.9 per cent in fuel rates over the previous year," Puri said in a written reply to a question in Lok Sabha.

"The impact of exchange rate variation led to an increase in expenses from Rs 31 crore in 2017-18 to Rs 772 crore in 2018-19," he added.

Not possible to keep Air India functioning without privatising it: Puri

"If Air India is not privatised then from where the money would come for it to function?" said Civil Aviation Minister Hardeep Singh Puri on Wednesday.
"If it (Air India) is not privatised then from where the money would come to for it to function? Earlier we used to go to finance ministry to make up the operating loss. We are not getting any money from the finance ministry, we have to go to banks," Puri told ANI when asked about Air India disinvestment.

"The condition of Air India today is that it is a first-class asset. If we sell it now then bidders would come. If we take ideological positions that we don't want to sell it then it would be difficult to run it in the future," he said.
When asked people employed by Air India, Puri said: "We are committed to them to get a fair deal. 11,000 and 4,000 on contract include trained engineers. Those who would acquire the airline would also require these trained people."
Earlier in August this year, the Civil Aviation Minister had said that the government is determined to privatise Air India and people are interested in buying it.
ALSO READ: Air India privatisation: Govt to offer lucrative deal, says minister Puri
The Parliament on August 3 passed the Airports Economic Regulatory Authority of India (Amendment) Bill, 2019, that increases the threshold of annual passenger traffic for major airports to over 35 lakh with Civil Aviation stating that the government was committed to privatisation of Air India as its debt has become totally unsustainable.
The Bill, which seeks to amend the Airports Economic Regulatory Authority of India Act, 2008, had earlier been passed by Rajya Sabha.

Air India privatisation: Bumps on the runway that are slowing sale take-off

The government has decided to ease terms of sale for Air India but it is still facing tough choice on almost half a dozen issues that could be crucial for the airline's successful disinvestment.
Among the key issues holding Expression of Interest (EoI), first stage of bidding, is whether FDI norms have to be relaxed to allow foreign airlines to take full control of the airline and extending national carrier status after change in ownership.

While raising FDI limit in domestic airlines beyond 49 per cent for foreign carriers would enthuse carriers like Qatar Airways and Singapore Airlines to participate in the bidding, national carrier status would give right of first refusal to the new owner in seat allocation on international routes.
The other issues include transfer of additional debt to the special purpose vehicle (SPV) and use of brand name Air India in future.
As much as Rs 10,000 crore of additional debt, over and above Rs 29,464 crore decided earlier, is proposed to be moved to Air India Assets Holdings Ltd (AIAHL), the special purpose vehicle of Air India for transferring part of its debt and assets.
"Even after transfer of Rs 29,464 crore of debt to SPV, the same amount of debt would still be there. It has to be decided by the group of secretaries and then the ministerial panel as to how much more debt has to be taken out to ensure sale process happens," an official said.
"The amount of debt will be related to the assets that would be on the airline books," he added.
A core group of secretaries met on Thursday to consider pending issues and resolve them so that the bidding process for Air India could begin by November-end. This will be the second attempt of the Modi government to sell Air India. In the first attempt last year, it had failed to attract a single buyer forcing it to abandon the sale process.
Among many issues, private investors were concerned about government retaining 24 per cent stake in the airline. The government has hence decided this time to almost completely exit Air India.
"The government has to also see this time how many employees would the new buyer be comfortable in taking. There are some other issues too and based on how early they are resolved the EoI would be invited," the official said.

Oil cos say Air India not paying Rs 100 cr a month, threaten to snap supply

State-owned oil companies on Tuesday accused Air India of not honouring its commitment to pay Rs 100 crore every month to clear overdue ATF outstanding of over Rs 5,000 crore and will be forced to snap supplies at major airports from Friday if no solution is offered.
"Air India had back in June and again in September agreed to pay the three oil marketing companies Rs 100 crore every month to clear past ATF dues. But unfortunately it hasn't met its commitment," said Sandeep Kumar Gupta, Director (Finance), Indian Oil Corp (IOC).
IOC and two other oil marketing companies, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), have served a notice on Air India that they will be forced to stop jet fuel (ATF) supplies if payments are not made, he said.
The monthly payment was besides the airline being put on cash-and-carry where it was given fuel only against cash payment.
"We have said we will stop supplies at major airports. Let's see what is the outcome of negotiations before the October 18 deadline," Gupta said.
Air India owes IOC about Rs 2,700 crore in unpaid fuel bills. This includes Rs 450 crore of interest. It's outstanding towards the three oil firms is about Rs 5,000 crore including interest.
Gupta said the oil companies haven't indicated the airports where supplies will be stopped but they will be major airports, unlike the six small airports where fuel supplies to Air India aircraft were stopped in August.
Supplies were resumed last month after Air India committed to paying Rs 100 crore every month to oil firms to clear past dues, he said adding Air India buys about Rs 13-14 crore worth of fuel every day from IOC.
IOC controls about 50 per cent of the market share.
August 22, IOC, BPCL and HPCL had stopped fuel supplies to Air India at six airports of Kochi, Mohali, Pune, Patna, Ranchi and Vizag over payment defaults.
However, after the intervention of the Ministry of Civil Aviation, they resumed fuel supply on September 7.
On October 5, the oil companies had told Air India that if it did not make the monthly lump sum payment, they will stop fuel supply from October 11 at "six major domestic airports". Subsequently, Air India wrote to them requesting not to stop the fuel supply.
The OMCs wrote back on Thursday itself, stating that "while we are in receipt of your letter dated 10th October 2019, requesting OMCs against stoppage of fuel supply, it has been observed that no timelines have been mentioned with respect to the lump sum payment".
"However, taking into consideration your request, we are deferring our decision to suspend supplies to October 18, 2019," they said.
The OMCs requested the national carrier to adhere to its commitment to making lump sum payment towards "overdue outstanding, failing which we will be reviewing our decision and stop supplies as per above notice".
In Thursday's letter, they mentioned that the "commitment towards daily payment has been mostly adhered to by Air India... the outstanding has not come down considerably in the absence of the committed monthly lump sum payment".
The Centre is planning to initiate the process of divestment of its stake in Air India, which has a debt of over Rs 60,000 crore, from November this year. In 2018-19, the national carrier posted a net loss of around Rs 8,400 crore.

OMCs warn Air India of stopping supply at 2 more airports over unpaid bills

Flight services of flag carrier Air India, including those for Haj pilgrimage, might be hit partially following the IOC-led oil marketing companies (OMCs) threatening to suspend fuel supplies at two more airports -- Hyderabad and Raipur-- over non-payment of dues.
The state-owned oil marketing firms have already stopped supplying fuel to Air India flights at Pune, Vizag, Cochin, Patna, Ranchi and Mohali since August 22.

The three OMCs -- Indian Oil Corporation, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd -- together have around Rs 4,300 crore in dues from Air India.
Though Air India is on cash-and-carry mode since April this year and making a payment of Rs 18 crore per day towards daily jet fuel bill, the OMCs have sought clearance of all dues at the earliest.
"The OMCs have asked Air India to make a lump sum payment towards outstanding amount including interest at the earliest, saying if the carrier fails to do so, they will extend the suspension of fuel supplies to Hyderabad and Raipur airports as well from September 6," a source privy to the development told PTI.
He said that Air India does not have international operations from the six airports where the OMCs have not been supplying jet fuel to its flights since August 22.
"However, if it is stopped in Hyderabad as well, there will be severe impact on some of our overseas flights as well as Haj operations in addition to domestic operations," he said.
"Air India's total fuel bill dues were Rs 4,600 crore as of March 31, 2019 which came down to Rs 4,300 crore by July 31," the source said.
"Also, since April 1 this year, Air India is making a payment of Rs 18 crore per day for daily fuel intake," the source added.
An Air India spokesperson refused to comment.
The source said so far the national carrier was managing operations from the six airports by rescheduling flights, but if supplies are cut at two more airports, especially Hyderabad, it would have a big impact on its overall operations.
On Wednesday, Indian Oil had defended cutting jet fuel supplies to Air India.
"We ourselves are borrowing around Rs 75,000 crore annually, that means we are a net borrower and not a cash- surplus company. To support credit to Air India, we need to borrow from markets," IOC chairman Sanjiv Singh had said.
He said IOC provides 90 days credit to Air India but the dues have been mounting and this must be 240 days now.
"So the total dues to us, including interest, is more than Rs 2,900 crore. Although we don't take any formal bank guarantee from a public sector entity which we do from private airlines, now we are a little worried and cannot continuously support the airline," Singh had stated.

Govt plans to hold roadshows, meet prospective buyers for Air India sale

India is considering inviting expressions of interest to sell Air India Ltd. by the end of next month as the government aims to complete the transaction this year, people with knowledge of the matter said.
The government will conduct roadshows as well as be open to meet prospective buyers even before the expressions of interest are sought, the people said, declining to be identified as the discussions are private. The process will likely allow the bidders to look at the accounts of the airline except for some portions that are confidential and also see the share purchase agreement, they said without providing details.

The potential bidders will have the option to make suggestions for changes in the sale terms during the process of expressing their interest in the deal, the people said. The government is looking to sell all its stake in the carrier, they said. D S Malik, a spokesman of the ministry of finance, did not immediately answer two calls made to his mobile phone. Dhananjay Kumar, a spokesman of Air India, declined to comment.
The plan is being prepared after the government’s attempt to partially exit the carrier failed to attract any bidder last year. Finance Minister Nirmala Sitharaman in her budget presentation for the current financial year said the government will revive plans to sell Air India and the divestment would be part of the government’s efforts to raise Rs 1.05 trillion ($15.3 billion) selling stakes in state-run companies.
Air India, which is surviving on a Rs 300-billion taxpayer-funded bailout, has failed to maintain its market dominance as a slew of carriers including InterGlobe Aviation Ltd. and SpiceJet Ltd. started to offer ultra-cheap, on-time flights more than a decade ago. The state-run airline has total debts of $8.4 billion and posted losses of more than Rs 76 billion last year, according to provisional estimates.

Air India spreads its wings, plans flights for Bali, Nairobi and Toronto

Air India plans to launch services from Delhi to Bali, Nairobi and Toronto in the winter schedule as it looks to consolidate its position as the largest carrier on overseas routes from India.
Currently, there is no non-stop service from Delhi to Nairobi and Bali while Air Canada flies daily to Toronto. New services are being proposed as Air India expects the return of its seventeen grounded planes in service by October end.

Thrice weekly Delhi-Toronto flight will be launched on September 27, civil aviation minister Hardeep Singh Puri tweeted on Friday. Launch dates for Bali and Nairobi have not been fixed. The airline is also planning Mumbai-Hong Kong flights.
The network expansion will help national carrier grow its market share and capitalise on capacity vaccum created by the collapse of Jet Airways. Improved fleet utilisation, wider network and better yields should help Air India and its chairman Ashwani Lohani is confident Air India will improve it's performance in FY 20.
"On average our load factors are 82-83 per cent. Connecting traffic too is growing. Operationally we are doing well and this would get reflected in our financial performance in FY 20," Lohani said.
Fuel price volatility and continued closure of Pakistan airspace are the main risks and the airline is losing Rs six crore daily as airspace closure has increased flying time of its US and Europe bound flights.
Seventeen planes including its Airbus A320, Boeing 777s and 787s have been grounded for several months because of want of spares and engines. Air India's engineering department has prepared a schedule to get the planes back into operations making network expansion possible in winter.
In FY 18, Air India has a market share of 10.4 per cent on India's international traffic. Jet Airways which shut operations in April had a share of around 14 per cent in same year. Despite flight cancellations, Jet had a capacity share of over 12 per cent on all international routes from India in January and commanded over half seat share on Mumbai -London and Mumbai -Kuwait routes.
In its recent report aviation consultancy CAPA said, "Air India will continue to face strong competition on domestic routes, but now that it has emerged as the largest carrier on overseas routes - where capacity is constrained - international operations could prove to be lucrative."

Air India deal likely to be sweetened further, PIM expected by July 7

Moving at jet speed, the two-stage bid process for selling of entire 100 per cent equity stake in national carrier Air India could kickstart as early as July 7.
The government has decided to come out with the preliminary information memorandum (PIM) inviting expression of interest (EoI) by the first week of July.

"Besides offering 100 per cent stake to private investors, more loans of the airline would be transferred to the special purpose vehicle (SPV) in order to further sweeten the deal," said a senior official.
The government had decided to transfer debt amounting Rs 29,464 crore along with other non-core assets to the newly-created SPV to attract bidder interest for the carrier.
"The transaction advisor (EY) has proposed to raise the transferable debt amount," the official quoted above said.
Multiple sources said that selling of Air India is the unfinished agenda of the previous government and now that they have made a comeback, the deal would be concluded this time.
The government had last year initiated the process to sell majority 74 per cent stake in the national carrier but the plan proved a damp squib with no private investor turning up for the offer.
In view of rising fuel price and weak investment environment, the government had put the process on hold maintaining that it would be taken up after Lok Sabha elections 2019.
But with the return of Narendra Modi government almost imminent, the Prime Minister's Office (PMO) had nudged the nodal Civil Aviation Ministry to complete necessary works for Air India's disinvestment.
Following this, Civil Aviation Secretary Pradeep Singh Kharola directed Air India Chairman Ashwani Lohani to finalize the financials of Air India and its subsidiaries by end of June 2019.
"Also, the accounts for FY 2018-19 would form the basis of bidding. Therefore, it is necessary that they are prepared with utmost caution so as to reflect the correct financial status," Kharola had written in the letter.

Prepare FY19 financials as PMO wants quick disinvestment: Govt to AI

The civil aviation ministry has told Air India that it should prepare 2018-19 financials for itself and its subsidiaries by end of June as the Prime Minister's Office (PMO) has decided to speed up the disinvestment process of three of its wings, according to an official document.
After a botched attempt to sell Air India in May last year, a panel led by Finance Minister Arun Jaitley had decided in June to scrap the stake-sale plan for the time being. It was then decided to infuse more funds into the carrier and cut down debt by raising resources by selling land assets and other subsidiaries.

Air India has a total debt burden of around Rs 55,000 crore.
On April 1 this year, a meeting was held in the PMO under the chairmanship of Nripendra Misra, the principal secretary to the prime minister, to discuss matter regarding strategic disinvestment of Air India and its subsidiaries.
"A meeting was held on April 1 under the chairmanship of the Principal Secretary to PM in which it was, inter-alia, decided to speed up the process of disinvestment of AIATSL, AIESL and AASL," civil aviation secretary Pradeep Singh Kharola told Air India's Chairman and Managing Director (CMD) Ashwani Lohani in a letter dated May 6.
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Air India Air Transport Services Limited (AIATSL), Air India Engineering Services Limited (AIESL) and Airline Allied Services Limited (AASL) are subsidiaries of the national carrier.
Kharola said that in order to proceed with disinvestment process of Air India and its subsidiaries, audited financials for 2018-19 will be required.
"I would, therefore, request you to kindly get financials of Air India and its subsidiaries for the financial year 2018-19 finalised by end of June," Kharola said.
Aviation secretary also said that since the accounts for 2018-19 would form the "basis of bidding", it is necessary that they are prepared with "utmost caution so as to reflect the correct financial status".
He added that contingent liabilities must be thoroughly verified. Moreover, he added that "account receivables" and "account payables" must be verified and confirmed from the other parties.
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"A physical verification of the inventories need to be done so as to ensure that the value of inventories shown on the balance sheet matches with the assets physically," Kharola told Lohani.
The secretary also told Air India CMD that a list of all pending litigations have to be drawn up.
As a precursor to sale of Air India, the Cabinet on February 28 had approved setting up of a special purpose vehicle (SPV) -- Air India Assets Holding Limited-- to transfer Rs 29,464 crore worth loans of the national carrier and its four subsidiaries.
The four subsidiaries which have been transferred to the SPV are AIATSL, AASL, AIESL and Hotel Corporation of India (HCI).

Air India promotes pilot who failed alcohol tests, steps back within hours

Within hours of the announcement, Air India on Tuesday put on hold the appointment of senior official Arvind Kathpalia, whose flying licence was suspended in November last year, as regional director of northern region.
The flying licence of Kathpalia, who had served as director operations, was suspended after he failed pre-flight alcohol tests.

"Capt. Arvind Kathpalia will take over the charge of the post of Regional Director (Northern Region) with effect from May 1, 2019", consequent to the retirement of incumbent Pankaj Kumar, Air India said in an order.
In a flip-flop, the airline issued another order saying that the appointment has been kept in abeyance till further orders.
Sources in the civil aviation ministry said Air India decided to keep the appointment order in abeyance following directions from Civil Aviation Minister Suresh Prabhu.
Soon after the issuance of the appointment order, which drew flak from pilots' body ICPA, an Air India spokesperson issued a statement saying that the appointment of Kathpalia as director of northern region was "according to law".
The position of regional director is equivalent to executive director, a post he held earlier, the spokesperson had said.
The Indian Commercial Pilots Association (ICPA), which represents pilots flying Air India's narrow body aircraft, "strongly" condemned the appointment.
"Top officials are bending backwards to elevate a tainted official. He's been made in-charge of NR (Northern Region) where he will be able to intimidate people who had given statements in police enquiry. Disciplinary action against commanders come under Regional Director-NR. It's ethically wrong," it said in a statement.
A person who has broken the law and has charge sheet pending against him cannot take disciplinary action against other employees, the statement added.
On November 11 last year, Kathpalia tested positive for alcohol in two breath analyser (BA) tests before he was to fly Air India's New Delhi-London flight.
The next day, aviation regulator DGCA suspended his flying licence for three years, and on November 13, the ministry issued an order removing him from the position of director of operations.
A week later, he was posted as an executive director by Air India.
In February 2017, when Kathpalia was working at the position of executive director of operations, his flying licence was suspended for three months on charges of skipping a pre-flight alcohol test.
After being removed from the post of executive director of operations, in March 2018, he was appointed as director of operations.
Rule 24 of the Aircraft Rules prohibits crew members from partaking any alcoholic drink 12 hours prior to the commencement of a flight, and it is mandatory for him/her to undergo an alcohol test both before and after operating a flight.