Tag Archives: AOC

Lenders seek proof of AOC in Jet Airways’ next hearing

In a recent development, lenders to Jet Airways have requested the Jalan-Kalrock Consortium (JKC), the consortium leading the revival efforts for the grounded carrier, to present the crucial Air Operator Certificate (AOC) in the upcoming hearing at the National Company Law Appellate Tribunal (NCLAT). The AOC, a prerequisite for resuming flight operations, is a pivotal document in the airline’s journey towards revival.

Jet Airways, which hasn’t operated since April 17, 2019, saw its AOC revalidated by the Directorate General of Civil Aviation (DGCA) on May 20 of the previous year. However, concerns have been raised as the revalidated certificate expired on May 19, indicating challenges in the immediate resumption of commercial flights.

The DGCA extended the AOC for a month until September 3, but lenders are now urging Jet Airways to produce the flying permit to demonstrate a genuine intent for revival. The next hearing, scheduled for December 11, is expected to shed light on the airline’s progress.

Amidst these developments, the lenders have also raised questions about the financial source of payments made by JKC. Allegations have been made that the consortium’s compliance with the Resolution Plan is questionable, with concerns raised about the legitimacy of funds used for payments.

Despite JKC refuting these allegations, the lenders, led by the State Bank of India (SBI), have expressed apprehensions about the transparency of the consortium’s financial dealings. The resolution plan, approved by the NCLAT in August, outlined a payment schedule that has come under scrutiny.

As Jet Airways navigates these challenges in its revival journey, the aviation industry and stakeholders are closely watching the proceedings, eagerly anticipating the resolution of issues that stand in the way of the iconic airline’s comeback.

39 new airlines took to skies in 2022: IATA

Nearly 39 new commercial airline operators took to the skies globally in 2022. This includes Akasa Airlines (passenger) and Pradaan Air Express (cargo) in India. Airline “births” are back to pre-pandemic levels after a downturn to 29 in 2020 was followed by a steep recovery to 58 in 2021, says a report by International Air Transport Association, a trade association of global airlines.

Amid the intense competition and other challenges facing the airline industry, the pandemic also created opportunities for start-up airlines, in part thanks to the buoyant second-hand aircraft market (making aircraft leasing more affordable).

Over the past three years, the number of airline deaths — cessation of an airline’s Air Operator Certificate (AOC) — and dormancies (airlines operating fewer than 10 flights per month) fell. While 15 airlines ceased operations in 2022, the number of airline births exceeded “deaths” in 2021 and 2022.

The number of airline deaths fell to 53 in 2020 from 59 in 2019, but this was accompanied by a sharp increase in dormancies — 156 — that year. Without government support the number of airline deaths during the pandemic would have been substantially higher, the report says.

At a regional level, Europe accounted for about half of all airline births in 2022, boasting 20 new airlines alongside seven “deaths”. Asia-Pacific also showed net growth, with nine airline births and one ceasing operations, despite taking a greater hit from travel restrictions and Covid disruptions compared to other regions in 2022. Interestingly, in North America alone airline deaths exceeded births in 2022.

Overall, the rising number of new and resurrected airlines, coupled with fewer deaths, shows the industry remains attractive to entrepreneurs and investors alike, supporting the continued recovery expected in 2023, IATA said. (Source The Hindu Business Line)

Akasa Air gets flying permit, will take to skies from month end

With Rakesh Jhunjhunwala-promoted Akasa Air receiving the air operator certificate (AOC) from the Directorate General of Civil Aviation (DGCA) on July 07, the country will see its eighth domestic airline taking wings by the end of the month.

The grant of AOC marks the satisfactory completion of all regulatory compliance requirements for the airline’s operational readiness, Akasa Air said in a statement. The process concluded with the airline having successfully conducted a number of proving flights under the supervision of the DGCA, the company said.

“We are extremely thankful to the ministry of civil aviation and the DGCA for their constructive guidance, active support and the highest levels of efficiency throughout the AOC process. We now look forward to opening our flights for sale, leading to the start of commercial operations by late July,” said Vinay Dube, founder and CEO, Akasa Air.

“We also want to take this moment to thank and acknowledge the collective contributions of our employees and partners whose commitment, perseverance, optimism, meticulous planning and exemplary teamwork have helped achieve this milestone,” Dube added. Akasa Air took the delivery of its maiden Boeing 737 Max aircraft on June 21. The airline will initially start commercial operations with two aircraft and plans to have 18 aircraft by the end of FY23, following which, it will add 12-14 aircraft every year, making up a total of 72 aircraft over five years.

The airline had ordered 72 aircraft of the 737 Max family, including 737-8 and 737-8-200 variants, from Boeing last year in November. The 737 MAX family aircraft is claimed to deliver better efficiency in terms of reducing fuel use and carbon emissions. (Source FE)