The Indian government has succeeded in its attempts to attract bidders for debt-laden Air India including one of the country's biggest conglomerate Tata Group. AFP Photo
The Indian government has succeeded in its attempts to attract bidders for debt-laden Air India including one of the country's biggest conglomerate Tata Group. AFP Photo
The Indian government has succeeded in its attempts to attract bidders for debt-laden Air India including one of the country's biggest conglomerate Tata Group. AFP Photo
The Indian government has succeeded in its attempts to attract bidders for debt-laden Air India including one of the country's biggest conglomerate Tata Group. AFP Photo

Can India's aviation sector withstand pandemic-induced turbulence?


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India’s aviation sector is no exception when it comes to navigating pandemic-induced turbulence.

But what sets it apart from others around the world is the rising interest of investors.

Despite the challenges faced by the market – already in a precarious state before Covid-19 owing to fierce competition and high costs – some investors in Asia’s third-largest economy are undeterred.

Air India, the debt-laden national carrier, has received bids in its privatisation process and Jet Airways is poised to return to the skies. Even the launch of a new airline is on the cards.

Jet Airways stopped flying in April 2019 when it ran out of cash. It plans to resume operations in the first quarter of 2022, according to a statement on Monday from the consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan, whose plan for the airline revival was approved by India’s bankruptcy court this year.

An "ultra low-cost carrier” called Akasa Air is also preparing to start operations. To be run by former Jet Airways chief executive Vinay Dube and backed by billionaire Rakesh Jhunjhunwala, the airline is said to be eyeing a launch in the first half of 2022.

“The Indian aviation sector may emerge from Covid with more airlines than it went in with, given the planned resumption of Jet Airways and the launch of Akasa, resulting in eight to nine carriers in total,” says Vivek Keerthy, sector lead at Capa India, an aviation advisory. “Akasa and Jet Airways’ plans reflect strong confidence in India’s long-term fundamentals.”

But Capa “believes that there will be strategic consolidation in the Indian airline sector once the Covid umbrella has lifted”, and there is a possible scenario of mergers or exits, which could result in India’s aviation sector being left with three to four carriers, Mr Keerthy said.

As far as the current situation is concerned, industry experts say the aviation sector is nowhere near a recovery.

“The aviation sector has faced the worst-case scenario during the pandemic,” said Nitin Shahi, executive director at Findoc Financial Services Group. “Even after strict lockdowns coming to an end and some restrictions on travel easing, the sector hasn’t been able to recover.”

The major factor that could help end the downward spiral in the market is the planned privatisation of Air India.

Mr Keerthy said this “could positively and structurally reset the sector”.

The long-awaited privatisation would lead to a more market-based approach, with the government expected to address policy and regulatory distortions that have plagued Indian carriers for decades once it relinquishes its ownership. The move will create a more favourable environment for the industry as a whole, Capa said in research published last month.

On Wednesday, the bidding process for Air India concluded. The line-up of potential investors in the loss-making airline includes Tata Sons, which has confirmed its participation in the bidding process. A group led by Ajay Singh, the chairman of budget airline SpiceJet, has also reportedly made an offer.

The interest this time around is a complete turnaround. The Indian government has failed in its earlier attempts to sell the carrier to private sector investors.

An attempt in 2018 to sell a majority stake in Air India did not attract a single bid. Since then, the privatisation process has been delayed repeatedly, partly by the pandemic. With the airline bleeding taxpayers’ money as the government focuses on an economic revival, selling the airline is critical for the government finances.

“It’s a bold and necessary step taken by the government to privatise this airline,” Mr Shahi said. “A private company is more efficient in technology [and] resources, and the government does not have the required resources to compete with them.”

To generate interest, the Indian government sweetened the deal by offering a 100 per cent stake in the airline and reducing its debt burden, which currently stands at more than $3 billion.

Analysts say relaxations from the government, along with factors including the airline’s coveted international landing slots at destinations such as London’s Heathrow Airport and New York’s JFK, make it an attractive proposition for a group that is willing to invest in long-term prospects of the business.

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“The interested parties could be looking at significant tangible and intangible assets including airport slots and potential to improve efficiencies with better management,” said Richa Agarwal, an analyst at Equitymaster. “Some of the successful low-cost airlines have proved that with better management and cost and operational efficiencies, profits can be made in the sector,” she said.

Air India has a fleet of 128 aircraft. Before the pandemic, it flew to more than 100 domestic and international destinations, according to its website. Like other carriers globally, the airline was forced to temporarily halt flights to many destinations and significantly reduce its capacity.

Among the current line up of bidders, Tata, one of the biggest conglomerates in India, is widely seen as the frontrunner to take ownership of the ailing airline.

It already has a significant presence in India’s aviation sector. It is a joint partner with Singapore Airlines in the Indian carrier Vistara and also with Malaysia’s Air Asia in the low-cost carrier Air Asia India.

If Tata takes over the flag carrier, it will be history turning full circle. Air India was founded by JRD Tata, the group’s former chairman, in the 1930s when it was known as Tata Airlines before nationalisation more than 20 years later.

The near-term challenges may be massive, but analysts say that the longer term potential for airlines is huge in the country of 1.3 billion people, which is set to overtake China as the world’s most populous nation by 2027.

By 2030, India’s international air traffic is projected to increase by 50 million to 60 million passengers a year compared with pre-Covid levels, to reach 115 million to 125 million, according to Capa. It is then expected to double again by 2040, to 240 million.

Within the country, there is also enormous scope for growth, as only a single-digit percentage of the population currently travels by air.

The aviation sector in India is now showing some signs of improvement as restrictions on travelling were eased after the deadly second wave of Covid-19 this year and the government has increased the pace of vaccination.

The Indian aviation sector may emerge from Covid with more airlines than it went in with, given the planned resumption of Jet Airways and the launch of Akasa, resulting in eight to nine carriers in total
Vivek Keerthy,
Practice Lead, CAPA India

Capa forecasts domestic traffic of 80 million to 95 million passengers during the current financial year to the end of March compared with 52.5 million in the past fiscal year. But this level is well below the almost 140 million passengers seen in the financial year from April 2019 to March 2020.

The overall picture is likely to improve as more restrictions are removed and passengers’ confidence in air travel increases, but some of the challenges that predate the pandemic will remain in place for some time, analysts say.

Despite the size and scope of the market, “even pre-pandemic, Indian aviation had been a tough industry to operate in”, Ms Agarwal said. “Both government and private players have struggled for survival [despite growth potential].”

The scope of challenges and the tough operating environment before the pandemic was underscored by Jet Airways’ financial failure over two years ago that followed Kingfisher Airlines’ demise in 2012.

“High fuel prices, heavy taxes, low demand and cut-throat competition are some of the problems, which the sector had already been battling,” said Gaurav Garg, head of research at CapitalVia Global Research. “The pandemic only made the situation worse for the sector”, resulting in steeper losses and mass lay-offs, he said.

“The situation is getting better now ... on the whole as the demand is improving but it's still significantly lower [than pre-pandemic levels],” he said.

The planned revival of Jet Airways, which is expected to start with domestic operations, followed by short-haul international routes towards the end of 2022, and the proposed entry of new carrier, Akasa, means that India would still be a tough market to operate in, analysts said.

“If the number of players increases, only customers will benefit while the [overall situation] will remain difficult,” Ms Agrawal said. “With more players planning to come in, the cut-throat competition might be damaging for incumbents.”

With so many developments happening simultaneously, it is difficult to predict where the Indian aviation industry is heading and 2022 may prove to be “a defining period”, Mr Keerthy said.

“The next few months will be key to determining the long-term outlook,” he said.

SPECS
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Reading List

Practitioners of mindful eating recommend the following books to get you started:

Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung

How to Eat by Thich Nhat Hanh

The Mindful Diet by Dr Ruth Wolever

Mindful Eating by Dr Jan Bays

How to Raise a Mindful Eaterby Maryann Jacobsen

Analysis

Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.

The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement. 

We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment. 

 

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000

Available: Now

FIGHT%20CARD
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Profile

Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

Haemoglobin disorders explained

Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.

Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.

The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.

The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.

A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.

UAE currency: the story behind the money in your pockets
The biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

Three ways to get a gratitude glow

By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.

  • During your morning skincare routine, name five things you are thankful for about yourself.
  • As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
  • In the evening, take some deep breaths, notice how your skin feels, and listen for what your skin is grateful for.
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206-cylinder%203-litre%2C%20with%20petrol%20and%20diesel%20variants%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20automatic%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20286hp%20(petrol)%2C%20249hp%20(diesel)%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E450Nm%20(petrol)%2C%20550Nm%20(diesel)%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EStarting%20at%20%2469%2C800%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
About Karol Nawrocki

• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.

• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.

• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.

• Met Donald Trump at the White House and received his backing.

Your Guide to the Home
  • Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
  • Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
  • Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
     

Director: Paul Weitz
Stars: Kevin Hart
3/5 stars

States of Passion by Nihad Sirees,
Pushkin Press

THE SPECS

Engine: Four-cylinder 2.5-litre

Transmission: Seven-speed auto

Power: 165hp

Torque: 241Nm

Price: Dh99,900 to Dh134,000

On sale: now

 

 

The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

While you're here
Results
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COMPANY%20PROFILE%3A
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Sukuk explained

Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.

War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

How to donate

Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206.4-litre%20V8%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E470bhp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E637Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh375%2C900%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20now%3C%2Fp%3E%0A
Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

SPECS

Mini John Cooper Works Clubman and Mini John Cooper Works Countryman

Engine: two-litre 4-cylinder turbo

Transmission: nine-speed automatic

Power: 306hp

Torque: 450Nm

Price: JCW Clubman, Dh220,500; JCW Countryman, Dh225,500

UAE currency: the story behind the money in your pockets
SHADOWS%20AND%20LIGHT%3A%20THE%20EXTRAORDINARY%20LIFE%20OF%20JAMES%20MCBEY
%3Cp%3EAuthor%3A%20Alasdair%20Soussi%3C%2Fp%3E%0A%3Cp%3EPages%3A%20300%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Scotland%20Street%20Press%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20December%201%3C%2Fp%3E%0A
Kalra's feat
  • Becomes fifth batsman to score century in U19 final
  • Becomes second Indian to score century in U19 final after Unmukt Chand in 2012
  • Scored 122 in youth Test on tour of England
  • Bought by Delhi Daredevils for base price of two million Indian rupees (Dh115,000) in 2018 IPL auction
Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Big%20Ape%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20LucasArts%3Cbr%3E%3Cstrong%3EConsoles%3A%3C%2Fstrong%3E%20PC%2C%20PlayStation%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Turning%20waste%20into%20fuel
%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A
Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

WOMAN AND CHILD

Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

MATCH INFO

Uefa Champions League, last 16, first leg

Ajax v Real Madrid, midnight (Thursday), BeIN Sports

DIVINE%20INTERVENTOIN
%3Cp%3EStarring%3A%20Elia%20Suleiman%2C%20Manal%20Khader%2C%20Amer%20Daher%3C%2Fp%3E%0A%3Cp%3EDirector%3A%20Elia%20Suleiman%3C%2Fp%3E%0A%3Cp%3ERating%3A%204.5%2F5%3C%2Fp%3E%0A
The specs

Engine: 3-litre twin-turbo V6

Power: 400hp

Torque: 475Nm

Transmission: 9-speed automatic

Price: From Dh215,900

On sale: Now

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
The%20trailblazers
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UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

THE SPECS

Engine: 2.0-litre 4-cylinder turbo

Power: 275hp at 6,600rpm

Torque: 353Nm from 1,450-4,700rpm

Transmission: 8-speed dual-clutch auto

Top speed: 250kph

Fuel consumption: 6.8L/100km

On sale: Now

Price: Dh146,999

The biog:

From: Wimbledon, London, UK

Education: Medical doctor

Hobbies: Travelling, meeting new people and cultures 

Favourite animals: All of them 

The specs

Common to all models unless otherwise stated

Engine: 4-cylinder 2-litre T-GDi

0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)

Power: 276hp

Torque: 392Nm

Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD

Price: TBC

Kanye%20West
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Updated: September 19, 2021, 8:18 AM`