The Airports Authority of India (AAI) is taking legal recourse against a Canadian court order that allows the seizure of millions of dollars collected by the International Air Transport Association (IATA) on behalf of Air India (AI, Mumbai Int’l) and the Indian regulator, reports Indian Express.

This follows after the Superior Court of Quebec passed separate orders on November 24 and December 21 on multiple petitions filed by three Mauritius-based shareholders of India’s Devas Multimedia Private Limited to enforce arbitration awards against the Indian government.

This includes USD6.8 million in air service fees collected by IATA on behalf of the AAI and an as-yet-undisclosed amount in Air India ticket sales collected through IATA’s Billing and Settlement Plan (BSP).

“The AAI has not been served any order by the Quebec Court, Canada, in this matter. However, IATA shared certain documents on the AAI’s request for suspending the transfer of the amount collected on behalf of the AAI. The AAI is taking legal recourse to defend itself,” the regulator said in a statement.

The Devas shareholders involved are Devas (Mauritius) Ltd, Telcom Devas Mauritius Ltd, and Devas Employees Mauritius Pvt. Ltd. Air India removed its inventory from the Global Distribution System (GDS) following the December 21 court order.

The dispute dates back to a deal annulled in 2011 between Devas Multimedia and Antrix Corp, a state-owned Indian Space Research Organisation (ISRO) unit, by which Antrix Corp would have leased satellite transponders to Devas. Antrix Corp has initiated liquidation proceedings against Devas Multimedia pending before the Karnataka High Court in India.

Meanwhile, the Delhi High Court on January 4 dismissed an attempt to have the government’s disinvestment in Air India set aside. The appeal by Bharatiya Janata Party (BJP) leader Subramanian Swamy was based on the allegation that the government’s methodology in the valuation of the national carrier was “arbitrary, illegal, and against the public interest,” reported The Economic Times. Swamy is an economist and statistician who serves as a Member of Parliament in Rajya Sabha, the upper house of the Indian Parliament.

This comes ahead of the Tata Group’s 100% takeover of Air India and Air India Express (IX, Mumbai Int’l) following its successful bid announced in October last year, representing the first privatisation in the country in 20 years. The Tata Group also takes over 50% of ground handler Air India SATS in a joint venture with the government, which retains 50%. The Tata Group has been granted indemnity from USD4.7 billion worth of Air India debt in its shareholder agreement with the government.

According to the share purchase agreement signed on October 25, the government has sold Air India for INR180 billion (USD2.4 billion), of which the Tata Group will pay INR27 billion (USD362.6 million) in cash and INR153 billion (USD2 billion) for Air India’s existing debt.

Lenders to Air India have reportedly offered Tata a loan of INR350 billion (USD4.6 billion) for a weighted average dividend of 4.25% – the rate at which the state is lending for one year, reports Hindi publication Zaroorat. Tata had invited bids from the airline’s existing lenders for a one-year general loan of INR230 billion (USD3 billion). This would include INR180 billion (USD2.4 billion) to repay the carrier’s debt and an additional INR50 billion (USD671 million) for initial operating costs.

Tata will notify each lender of the allotment in the first week of January and draw the sanctioned limit between January 10 and 15, 2022, the report said. The takeover and refinance of Air India’s debt was due to be completed before January 23, the long-stop date for closing the Air India agreement with the government. However, regulatory processes appear to have delayed the deadline, now extended by mutual consent to the end of January, reports the Hindu newspaper Jagran.

By August 31, 2021, Air India had a total debt of INR615.62 billion (USD8.2 billion); 75% of this debt will be transferred to Air India Assets Holding Limited (AIAHL), a special purpose vehicle, before the airline is handed over to the Tata Group.

According to company information, in 2020/21, the combined revenue of Tata companies was USD103 billion.

Source: Ch-Aviation

British Airways and Qatar Airways shared that they intend to extend their joint business partnership. Amid the announcement, the two flag carriers of their respective countries proudly highlighted that they will perform up to six flights a day to Doha from London Heathrow and London Gatwick this winter. 

Plenty on offer

Both airlines have formed strong connections over the years, especially since Qatar Airways joined oneworld in October 2013, an alliance British Airways is a founding member of. The carriers promote attractive fares, smoother connections, integrated booking platforms, joint customer support, and an extensive network as benefits of the agreements between each other.

Now, British Airways and Qatar Airways propose to expand the partnership and give their passengers greater access between Europe and the Middle East, Asia-Pacific, and Africa. Those flying to destinations such as Nairobi, Colombo, Singapore, Sydney are set to benefit from the move. Moreover, passengers flying to and from popular European cities, including Amsterdam, Madrid, and Dublin, are expected to notice advantages.

Executive agreements

Qatar Airways Group CEO Akbar Al Baker shared the following about the partnership in a company statement: 

“Expanding our Joint Business with our strategic airline partner, British Airways, is an important milestone in our ambition of providing customers access to the most extensive route network and unrivalled product.” 

Meanwhile, BA chairman and CEO Sean Doyle added:

“The launch of our first flight from Gatwick to Doha was an important milestone in our existing joint business with Qatar Airways. The proposed expansion of the joint business will be great news for customers, offering them access to more destinations across the world with seamless connections. We know customers are always looking for more options to connect onto popular holiday hotspots such as the Maldives and Seychelles, and this expansion will allow them to do just that.”

A colorful relationship

Altogether, this announcement comes on the back of British Airways returning its daily operation to Doha. The first service since the relaunch was Flight BA2033’s December 9th takeoff, which saw a British Airways Boeing 777-200ER depart for the capital of Qatar from Gatwick.

Despite the close relationship between the two carriers, their leaders haven’t always had kind words for each other’s services. For instance, in April this year, Al Baker likened BA to a low-cost carrier and dubbed it “a two out of ten airline” amid his disappointment of the operator in recent times. Nonetheless, Al Baker expressed his optimism for the British outfit under the leadership of Doyle, sharing that he hopes that the company can get its glitter back.

At the beginning of last year, the two airlines applied to the Australian Competition and Consumer Commission (ACCC) to coordinate nine major routes between the UK and down under via Doha. This move hoped to open up new promising opportunities for British Airways before the global health crisis took its toll on Australian operations. Amid the extension of the joint business partnership, we could see plenty more promising avenues such as this in the next chapter of global aviation.

Source: Simple Flying

Kenya Airways (KQ) has started direct flights from South Sudan capital Juba to Khartoum in Sudan as it eyes Africa expansion.

The national carrier said the new flight will originate from the Jomo Kenyatta International Airport (JKIA) in Nairobi flying to Khartoum via Juba and back to Nairobi every Wednesday and Sunday.

The airline will also launch another flight from Nairobi to Juba via Khartoum and back to Nairobi on Fridays.

KQ did not indicate how much it will charge passengers on the route, which is also served by carriers such as Somalia-based Jubba Airways.

“Kenya Airways is steadfast on creating free flows of trade and tourism across Africa and in other key markets because we believe our wide network and reliable services will aid in opening up opportunities across the region,” KQ chief executive Allan Kilavuka said in a statement on Friday.

Flights via Juba, on Wednesdays and Sundays, depart Nairobi at 7.40 am to arrive in the South Sudanese capital at 9.25 am, and leave at 10.05 am to get to Khartoum at 11.25 am. The return trip starts at 12.05 pm in Khartoum for Nairobi, arriving at JKIA at 16.10 pm.

The Friday flight via Khartoum leaves Nairobi at 7.40 am to arrive in the Sudan capital at 10.35 am. The flight departs to Juba at 11.15 am, arriving at 13.20 pm. It returns to Nairobi at 2 pm to arrive at 3.45 pm.

“The new service between Juba and Khartoum is timely and gives us an opportunity to serve a range of travellers and grow our customer base in both Sudan and South Sudan,” said Julius Thairu, KQ acting chief commercial officer.

Source: Business Daily