Ch june 16 e magazine by Newsline

AIR CARGO RECEIVES A BOOST WITH SINGLE-WINDOW CLEARANCE

CRUISING HEIGHTS www.cruisingheights.in

JUNE 2016 I `90

The GMR-operated Delhi Airport has much to celebrate about. The first in the country to have created a record with its iconic T3, it has secured the No. 1 position for two consecutive years in the ASQ survey among the airports of its class with the world-class services it provides. It's a Happy Tenth Anniversary!

EDITOR-IN-CHIEF'S NOTE

LEARNING FROM THE NORDIC ATTACK K Srinivasan

n April 15, 2016, Norwegian Air International (NAI) finally received the US Department of Transportation (DoT) approval of its December 2013 application for a US foreign air carrier permit. The three-year long battle saw its application opposed by the big three US carriers, labour unions and many European legacy carriers. It reminded one of the tactics adopted by Jet Airways’ Chairman Naresh Goyal to try and stop all comers from Kingfisher to Sahara to notably IndiGo.

Here are the nitty gritties: Norwegian Air International (NAI), based in Dublin, is a subsidiary of Norwegian Air Shuttle. What they intend to do is use Ireland as a base, embrace the open skies policy of the European Union and mount flights into the US East and West Coast in a low cost model (LCC) with brand new 787s. Critics, powerful ones at that, state that the company is short-circuiting the strict employment laws in Norway by basing out of Ireland. One reason why all their muscle has come to nought so far is because the whole battle is so CRUISING HEIGHTS June 2016

unethical and unjust. For starters, siding with the legacy carriers on either side of the Atlantic were the unions who have a running battle at other times with the management. Here they were on in a common cause. And, what was their argument? That NAI’s business model undermined labour rights! Rightly, DoT concluded that this cannot be used as a gambit to deny a licence to NAI. For the record the Centre for Asia Pacific Aviation said that “three former US secretaries of Transportation (Andrew Card, Norman Mineta and Mary Peters) also backed NAI, saying that opponents are using the opportunity of Norwegian’s application as a means to block competition and deny choice to consumers” in trans-Atlantic air travel. Wonder of wonders, both the Democratic contenders for the US Presidential contest have joined the battle. Hillary Clinton has urged President Obama not to grant NAI a permit to launch flights between Cork and the United States.That comes soon after her opponent Bernie Sanders made the same pitch. More than 30 US Congressmen too, have written to the White House. The problem with legacy carriers both in the US and in Europe is that they have a terrible business plan, awful labour practices, gargantuan costs and leaden feet. They are neither nimble nor mobile in their decision-making. No wonder they don’t want NAI just as they don’t want Emirates or Etihad or Qatar. The only ones who have openly said that they have no problem with NAI licence is Willie Walsh of IAG and Michael O’Leary of Ryanair. And mind you, both Willie and Michael make plenty of money inspite of all the challenges and the complexities that aviation brings forth. Is there any lesson in this for the Deltas of the world ? Or, will they choose to be like Naresh Goyal and wait for an Etihad to bail them out? It’s their choice.

srini@newsline.in

Off the cuff

Wake up call for MEA The More Electric Aircraft (MEA) — meaning airliners that are progressing

contents

in the direction of electric powertrains — business will be around $24 billion as soon as 2020 but a new analysis by IDTechEx, “Manned Electric Aircraft 2016-2031” sees truly hybrid and pure electric aircraft being a $24 billion business in 2031. Half of that will be relatively low priced craft such as leisure and small work aircraft and the high priced half will be a mix of such things as helicopters, military aircraft and feeder aircraft according to IDTechEx projections, with large airliners not quite there. Indeed large pure electric airliners would rely on legislation even when feasible because they would be slow. The new report provides a detailed technology roadmap and sales forecasts for all this with specifications of actual and planned aircraft along the way. The report reveals how, so far, electric aircraft have largely followed electric land and water vehicles. Pure electric small ones appeared first, about 50 years after the first electric boats and

A BIRTHDAY TO REMEMBER

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Ten years is too short a time in the life of an airport but for Delhi International Airport it has been able to surpass all that airports achieve in a lifetime. From a virtually nonentity in the world, the airport has established itself at the top of its class in the world. It has taken gigantic leaps – in infrastructure, in technology and above all, in reputation – in its ten year existence as a private player. What is it that it does so differently from the others?

cars. Hybrid ones are needed for the longer distances and tougher duty cycles and only now are these getting serious investment. The delays are only partly explained by the tougher demands and regulatory requirements of aircraft. In 2016, Siemens and Airbus agreed to pool 200 engineers to work on them, the level of effort Toyota allotted to hybrid cars 20 years earlier, with major commercial success resulting today. Toyota enjoys well over $20 billion dollars of sales of electric cars, buses and forklifts with Honda and BMW successful too – interesting because all three are now in aircraft. Google and Facebook are involved in electric cars and aircraft and Apple is interested. So, it is wake up time.

GLOBAL DIGEST

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Malaysian Airlines established a new holding for its main business and will include four separate business units. AA imploded six buildings from its 1980-era headquarters to make way for new development at its Fort Worth campus. Boeing has inaugurated a partially automated 777X Composite Wing Centre in Everett.

CRUISING HEIGHTS June 2016

NEWS DIGEST

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According to data released by DGCA, domestic carriers flew 79.32 lakh passengers in April this year registering an increase of almost 21 per cent over the 65.59 lakh passengers flown by them during the same period last year. During Q4, IndiGo posted a net profit of `579 crore, while SpiceJet registered a net profit of `73 crore.

contents ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS PROFILES NEWS DIGEST

CHOPPERS

NET EXPRESS

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CRUISING HEIGHTS VOLUME XI n NO 1

According to Honeywell Aerospace, the civilian use of helicopters over the next five years would come down. The decrease is due to an environment of slower global economic growth. A proposal has been cleared in Mumbai to build helipads on rooftops of buildings over 200 metres in height without any planning application or approval.

Editor-in-Chief

K SRINIVASAN Managing Editor

TIRTHANKAR GHOSH

Group Consulting Editor

R KRISHNAN

IATA along with airlines and airline suppliers met at Silicon Valley for a special Plug and Play event that promises to improve and enhance air travel in the next few years. Meanwhile, Malta International Airport and SITA have entered into a strategic partnership.

Consulting Editor

M MURLIDHARAN Senior Proof Reader

RAJESH VAID Correspondent

NAVEED ANJUM, ANJANA RAGHAV, NAYANTARA SRINIVASAN, SUBHASH CHANDRA YADAV Designer

NAGENDER DUBEY Picture Editor

SNIPPETS AIR CARGO

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Photo Editor

H C TIWARI

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Staff Photographer

The Central Board of Excise and Customs (CBEC) has brought in SWIFT (Single Window Interface for Facilitating Trade) to usher in ease of doing business. Meanwhile, IATA released demand growth data for global air freight markets for March 2016 showing a 2 per cent drop in volumes measured in FTKs compared to the same period last year.

HEMANT RAWAT

Director (Admin & Corporate Affairs)

RAJIV SINGH

Director (Marketing)

For the first time in its history, Air India introduced seat selection facility for its passengers. And the airline’s wholly owned subsidiary, Alliance Air, started flights on Bhopal-Jabalpur-Hyderabad and Bhopal-Raipur-Pune sectors. IndiGo has launched its first daily non-stop flight between Kochi and Muscat. AIR CARGO RECEIVES A BOOST WITH SINGLE-WINDOW CLEARANCE

BACK PAGE

PRADEEP CHANDRA

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The war between US’s big three airlines and Gulf’s three airlines escalated when Qatar Airways CEO Akbar Al Baker got Hollywood star Jennifer Lopez to perform in Atlanta’s Fox Theatre, that Delta had been supporting for years. When Delta came to know this, it terminated its more than 20-year sponsorship of the Fox Theatre.

CRUISING HEIGHTS www.cruisingheights.in

COVER PHOTO: A

sweet celebratory touch from Srinivas Bommidala, Chairman Airports, GMR Group for I Prabhakara Rao, CEO, DIAL while P S Nair, CEO, Airport Sector, GMR Group (extreme right), is all smiles COVER DESIGN NAGENDER DUBEY JUNE 2016 I `90

RAKESH GERA

Legal Advisor

VASU SHARMA Subscription

ALKA SHARMA Distribution

PANKAJ KUMAR, BHUSAN KUMAR

Executive Director

RENU MITTAL

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+91-9810030533, 9810159332 Editorial & Marketing office: Newsline Publications Pvt. Ltd., D-11(Basement) Nizamuddin East, New Delhi –110 013, Tel: +91-11-41033381-82 All information in CRUISING HEIGHTS is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/ views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part (s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket-IV, Mayur Vihar Phase–I, Delhi–91 and printed by him at Archna Printers, 18, DSIDC Shed, Okhla Indl Area Ph-1, New Delhi -110020

The total number of pages in this issue: 68

CRUISING HEIGHTS June 2016

PERISCOPE MIND BOGGLING “Who doesn't he (Vijay Mallya) owe money? The government should not do anything to save Mallya and the law should take its course. But how he managed his business is mind-boggling.” ASHOK P GAJAPATHI RAJU, Civil Aviation Minister, on Kingfisher chief Vijay Mallya

NO WAY “I will not support what would be the world’s most expensive runway. I will fight against it and I refuse to pay for it because the cost will be passed on to me and my customers.” WILLIE WALSH, CEO, International Airlines Group, on the Heathrow proposal of a third runway since there was now “desperation by the airport and they are willing to do anything to get it”

LETTERS TO EDITOR I liked the cover story, An unequal fire-fight (May 2016) about Christoph Mueller. It was sad to know that Mueller will depart so soon. His reputation preceded his work at Malaysia Airlines. He tackled the problem in his unique way and had to do what had to be done. No wonder they named him the Terminator. terminator-II Though he said he was leaving due to the end personal reasons, there is widespread speculation that he was forced to quit because of politics in the airline. I wish him best of luck for the future and hope that we will soon come to know the real reason/s behind his resignation. Rekha Sharma, Kota BOMBARDIER FINALLY GETS THE ORDER IT WAS HUNTING FOR

CRUISING HEIGHTS www.cruisingheights.in

WHO AM I? “I like to be called by my first name...But it is next to impossible to get my staff to call me that. They would probably say that they don’t know what makes me tick. But I am determined to help them figure it out as we move forward to building the future of SriLankan.”

MAY 2016 I `90

Brought in to turn around Malaysia Airlines, CEO Christoph Mueller has put in his papers after barely a year in the job. What prompted his hasty exit?

It was heartening to read the interview of Dr Alan Epstein, VP of Technology and Environment, Pratt and Whitney, “The Neo’s engine problems are a minor hiccup” (May 2016). He has a wide knowledge about engines and when he says that everybody is acknowledging the qualities of the Geared Turbo Fan engine, he knows what he is saying. Simply put, the GTF has a bright future. I hope the GTF’s future will be good and whatever the problems with the Neo’s engines will soon be sorted out. Rahul Arora, Mumbai The interview of Jayant Nadkarni, President, BAOA (May 2016), “BAOA’s new study hopes to change government’s perception” shows that there is potential for business aviation in the country but it has not been allowed to grow. After BAOA releases its study, one hopes that the government’s perception about Business Aviation will change and the sector will move forward. The study was obviously prompted because the draft Civil Aviation Policy did not meet the industry’s demands. Nadkarni wants a rejuvenation of business aviation because it is a sheer necessity. It is not only about luxury. After all, the high and mighty – and that also includes people who are close to those who wield power in the country – use business jets to flit about from one place to another. Sanjay Goel, Patna All correspondence may be addressed to Editor, Cruising Heights, D-11 Basement, Nizamuddin East, New Delhi -110013, OR mail to cruisingheights@newsline.in

CAPTAIN SUREN RATWATTE, CEO, SriLankan Airlines, on how he plans to rebuild a profitable airline

VANISHING TRICK “As far as I can remember (the row) started in February 2015... we’ve put more and more 380s in to the US… I don’t think really (the US campaign against the Gulf carriers) has succeeded, has it?” TIM CLARK, President, Emirates, on the anti-Gulf carrier campaign running out of steam as the presidential election looms closer

SUBSIDIES — NOT AGAIN “I insist on that point. If we have a product that’s being offered at below cost and somebody else is paying the bill who is not the manufacturer, then we can have some doubts about the sustainability of this process.” PAULO CESAR SILVA, President and CEO, Embraer Commercial Aviation alleging that rival Bombardier won the CSeries order from Delta Air Lines based on improper government subsidies.

MONEY, MONEY “Our goal is not just to be good. It’s to be the best at what we do, the best airline in Europe. Our goal is profitability. Not breakeven, but profitability. We need to fly where we make money. That’s our goal.” CRAMER BALL , CEO, Alitalia on his goal to improve the oncebeleaguered Alitalia’s average load factor from 76.2 per cent in 2015 to 80 per cent and above.

CRUISING HEIGHTS June 2016

The Green Index The study noted that a carrier’s planes — most likely, the older and less efficient—played a large part in the discrepancies between the ratings, regardless of carrier size. Warwick Business School could only collect data for 20 major airlines of some 200 international airline companies. The polluters (ranked from the highest to the least polluting airline): American Airlines, Delta Air Lines, United Airlines Luftansa Group, Air France/KLM, Emirates, IAG Southwest, Cathay Pacific, Korean Air, Qantas Air Canada, Etihad, SAS, Virgin Australia,TAP, BA easyjet and Finnair

COLD STATS

Twenty of the world’s largest airlines have not significantly reduced their greenhouse gas emissions over the past seven years, according to a new research by the United Kingdom's Warwick Business School. The study, based in the UK, ranked the airlines from least to most polluting from 2007 to 2014, with Finland’s Finnair emerging as the smallest emitter of greenhouse gas, followed by TAP Portugal and Virgin Australia. American Airlines—owing largely to its 2013 merger with US Airways—was the worst, along with Delta and United Airlines. Other carriers like Air Canada, Qantas, Southwest and Cathay Pacific ranked on the cleaner end.

LOOKING GLASS

SIGN OF THE TIMES: Taming domestic carriers to agree to the `2,500 per hour short distance flights

TOUGH CALL “All the way through the tough times we continued to invest – some of the decisions like the new LA lounges and the new seats on the A330s…I don’t think you can stop that investment in the bad times, it has to be consistent and it will pay dividends at the right time.” ALAN JOYCE, CEO, Qantas on how his three-year transformation programme in the airline is on track

CREATING WORLD CLASS “The airline has competitors that are like Olympic class athletes…At this point we are in the strength-building phase where we are improving the processes, systems, and skills so we can compete with those Olympic athletes. It means going to the gym more often and hiring the top coaches in each discipline.” CHARAMPORN JOTIKASTHIRA, President, THAI, about the airline’s restructuring efforts in a highly competitive market

CRUISING HEIGHTS June 2016

NEWS DIGEST/ALLIANCES

And now, a LCC alliance A

sia’s eight low-cost carriers including Tigerair Australia have formed a new alliance recently that aims to give members a significant boost in network spread and enhance their ability to increase revenues. Known as Value Alliance, it is the world’s first pan-regional LCC alliance. Along with Tigerair Australia, the members are Cebu Pacific from the Philippines plus Cebu Pacific subsidiary Cebgo, Korea’s Jeju Air, Thailand’s Nok Air and NokScoot, Singapore-based Scoot, Tigerair Singapore and Japan’s Vanilla Air, owned by All Nippon Airways. Tigerair Australia Chief Executive Rob Sharp said that the alliance would provide greater value, connectivity and choice for travel throughout the Asia Pacific region as the partner airlines bring their extensive networks together. Last year, the member airlines collectively served more than 46 million travellers from 17 hubs across the region. Sharp also said, the new partnership was a win-win for every Value Alliance airline

embers of Singapore Airline's frequent flyer programme — KrisFlyer — would be able to redeem their miles for travel in Premium Economy Class. KrisFlyer members would also be able to use their miles for upgrades from Economy Class to Premium Economy Class, or from Premium Economy Class to Business Class, with effect from June 1, 2016. “Premium Economy Class has been very well received since its launch last year and we are pleased to make it available for KrisFlyer redemption, now that it is serving more cities in our network,” said Singapore Airlines Senior Vice President Marketing Planning, Lee Wen Fen.

Star goes local to grow S

tar Alliance is adopting a new approach in its efforts to encourage local awareness about the benefits of flying with its network of airlines. The alliance has chalked out plans to “speak more directly” to local agents through its website that will play a major role in the communication, according to Star Alliance Australia steering committee chair Tim Clyde-Smith. In addition, the airline alliance has started implementing a new plan to further strengthen its trade distribution channel. “We are now into the second phase of developing closer relationships with selected travel agency groups by giving them highly customised co-branded training websites geared up specifically to Australian travel agents,” Clyde-Smith said. The push comes as Star Alliance’s Australia network has been further strengthened by the return of All Nippon Airways (ANA) to the Sydney-Tokyo route last December. The launch of Singapore Airlines’ first international services to Canberra in September 2016 will also bring in more good news for the alliance.

CRUISING HEIGHTS June 2016

“That means we now have 11 members online operating into Australia so as an alliance we’re the biggest in Australia in terms of online services,” Clyde-Smith said. In total, the alliance now has 23 of its 28 members represented in Australia with 12 offline. When Singapore Airlines’ Canberra service commences, the alliance will fly out of 10 ports nationwide. The launch of Air New Zealand services between Auckland and Buenos Aires in December last year also significantly bolstered the network, according to Clyde-Smith, giving travellers an appealing Southern Hemisphere-focused alternative to the traditional round the world fare.

ETBTRAVELNEWS.COM

KrisFlyer opens doors for redemtions

delivering significant benefits for Tigerair Australia customers. “This is a major milestone for Tigerair Australia, expanding our existing network from 21 routes and 12 destinations to span one third of the world to over 160 destinations throughout the Asia Pacific region. By working together we can enable more people to travel for less to more places than ever before in a single transaction from the convenience of each airline’s website,” Sharp added. Membership to the Value Alliance is by invitation only. In 2015 its member airlines collectively served more than 47 million travellers from 17 hubs.

Now, enjoy artistic 4K videos in worldwide SkyTeam lounges A

irline alliance SkyTeam has added artistic and creative 4K video artworks in its lounges. Selected, produced and installed by Digitalarti in partnership with Brandimage agency, the artworks offers a visual display to enhance the ambience. With more than 600 lounges worldwide, SkyTeam continues to carry out its first business class programme for its travellers. The original broadcast device of 4K videos offers customers the chance to enjoy some of the finest digital art when they visit SkyTeam lounges. SkyTeam’s digital art gallery can be found in the alliance’s lounges in London Heathrow, Is-

tanbul, Sydney and Hong Kong. The new lounge opened recently in Dubai also features an art installation. The artworks include the creations of French artist Grégory Chatonsky’s Our Land — a generative video using the artist’s fingerprint, which has been digitalised and used to create a landscape; Rachel Newman’s Electric Ocean — created as a visualisation of the surrealist quality of the sea, set in motion by design; and Perry Hall’s Drawing System which uses high-resolution photography to capture the abstract patterns created by oil and acrylic paints as they move and transform.

CODESHARE

Air India’s pact with Flybe Air India signed a codeshare pact with European regional airline Flybe which will give passengers of the national carrier a seamless connectivity to United Kingdom and rest of the Europe and vice-versa. Code-sharing allows an airline to book its passengers on its partner carriers and provide seamless connectivity to multiple destinations where it has no presence.

Air Canada, Avianca Brasil to codeshare Air Canada inked a codeshare agreement with Avianca Brazil. Starting from May 9, the agreement includes flights to and from Brasília, Curitiba, Florianópolis, Fortaleza, Porto Alegre, Recife, Rio de Janeiro (Antonio Carlos Jobim-Galeao airport), Salvador and São Paulo (Guarulhos airport). Air Canada customers will be able to board through direct connections, checking in only once and dispatching baggage to the final destination.

DIGITALARTI.COM

Alaska, Japan Airlines ready to ink deal Alaska Airlines and Japan Airlines (JAL) have planned to ink a codeshare agreement and a frequent flier partnership on June 29, pending government approval. From the US West Coast, JAL flies nonstop between Tokyo and Los Angeles, San Francisco, San Diego, Vancouver, B C and between Los Angeles and Osaka. JAL also offers an extensive network within Japan and throughout Asia.

For more information call 1800 102 3000 or visit vsflyinghub.com

GLOBAL DIGEST/AIRLINE

Qatar Airways takes 50th B777

QATAR AIRWAYS

Qatar Airways has said it has received its 50th Boeing 777, taking the total count of aircraft in operation to more than 180 single aisle and widebody aircraft. The Doha-based carrier operates the Boeing 777 to a host of destinations including Houston, Buenos Aires and Los Angeles, which are some of its longest destinations as measured by flight hours. Qatar Airways CEO Akbar Al Baker said: “We place passenger comfort and the flying experience at the forefront of our aircraft programme, and with the introduction of the Boeing 777 into the fleet just under a decade ago, our crew and passengers have come to know how comfortable and spacious the cabins are…We are proud to fly the Boeing 777 and this milestone in our fleet is a mark of the success we have had with Boeing and Qatar Airways’ fleet programme.”

Qatar ups IAG stake Qatar Airways increased its stake in IAG for the second time in less than three weeks seeking to benefit from closer ties with its European partner. The move lifts Qatar Airways’ holding in IAG to 15 per cent from a stake of close to 12 per cent, which the Doha-based airline revealed last month. Qatar can continue to lift its stake in IAG, which also owns Ireland’s Aer Lingus and Spain’s Iberia, until it reaches 49pc. Under European Union rules, nonEuropean carriers are barred from controlling EU airlines, although the European Commission has suggested it might relax those limits. The investment bolsters the airline’s “westbound strategy” by providing access to IAG’s trans-Atlantic network and leading positions at hubs in London and Madrid, said Akbar Al Baker, chief executive officer of Qatar Airways. It also enables the airline to take more advantage of IAG’s acquisition of Irish carrier Aer Lingus. Industry observers say that Qatar Airways and IAG, which is led by boss Willie Walsh, already appear to be forging closer ties. The Gulf carrier is part of the Oneworld Alliance, of which BA is a founding member. Qatar also flies cargo for BA.

Furthermore, last week BA announced it would start flying non-stop to Qatar’s capital Doha, which some aviation experts believe could signal the start of closer co-operation between the two companies. Akbar Al Baker, the chief executive of the Gulf carrier, said: “We have been very happy with our investment in IAG, from a financial, commercial and strategic perspective. “The relationship formed has helped to deliver on our westbound strategy. Furthermore, IAG's proven management and strategic direction have been the basis on which we will continue to forge a long-term relationship.” Qatar Airways first drew closer to IAG after joining its Oneworld alliance in 2013, aided by the backing of the London-based company’s CEO Willie Walsh at a time when other European carriers were openly hostile to the expansion of Gulf rivals.

CRUISING HEIGHTS June 2016

Doug Parker is becoming an ‘at will’ employee American Airlines CEO Doug Parker ended his contract with the world’s biggest carrier, switching his employment status to “at will” to match that of the company’s 100,000 workers. The move was disclosed in a regulatory filing and in a letter from Parker to the carrier’s employees. It means he will not be guaranteed a set level of compensation and benefits, nor will he be protected from a change in control at the company or covered by severance provisions, according to the filing. The change occurred at Parker’s request. “To be crystal clear, just because I don’t have a contract doesn’t mean I intend to leave American soon,” Parker said in the letter. “Rather, it is just another way of demonstrating how much I enjoy what I do, my excitement about our future.” “Nothing about having a contract felt like a shared commitment to working together,” he wrote. The employment agreement provided protection “against a number of things I don’t think I should be protected against,” including being fired or if unhappy shareholders gained control of the airline’s board.

Emirates posts $1.9 billion in profits While Delta was wheezing, the Middle East’s biggest airline, Emirates, said its profits were up by about 56 per cent to $1.9 billion in the last fiscal year largely due to lower oil prices that drove down fuel costs. Emirates President Tim Clark told The Associated Press that the airline’s fuel bill decreased to $5.4 billion over the last year, comprising around 26 per cent of operating costs, compared with 35 per cent the year before. Still, fuel remains the airline’s biggest cost. “The revenue fall has been well-managed, let me say that. It could have been a lot worse,” said Clark, who added that the company was also able to save on its supply costs. The airline, which marked its 30th anniversary last year, has posted profits for 28 consecutive years. Emirates carried nearly 52 million passengers in 2015-2016. That’s helped its hub at Dubai International Airport claim the mantle as the world’s busiest for international passengers, handling some 78 million passengers in 2015. The world’s overall busiest, however, remains Hartsfield-Jackson Atlanta International Airport.

Emirates Group profit continues to go up… The Emirates Group comprising Emirates Airline, dnata and other subsidiaries announced its 28 consecutive year of profit and steady business expansion, ending the year with record profits, and in a strong position despite the global and operational challenges during this period, said a press release. In its 2015-16 annual report, the Emirates Group posted an US$ 2.2 billion profit for the financial year ending March 31, 2016; a growth of 50 per cent from last year. The Group’s revenue reached US$ 25.3 billion; a decrease of 3 per cent over last year’s results, and the Group’s cash balance increased strongly to US$ 6.4 billion. Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-16. Against an unfavourable currency situation which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the Group’s performance is testament to the success of our business model and strategies.” In line with the overall profit, the Group declared a dividend of US$ 681 million to the

Emirates will buy more A380s even if new version shelved Dubai’s flagship carrier Emirates would buy more of the existing A380 model even if Airbus decides not to move ahead with the new engines version, Emirates President Tim Clark said. Emirates, the biggest buyer of A380s and the most vocal supporter within the airline industry, has ordered 142 A380s, of which 77 are in operation. A potential upgraded version with more fuel efficient engines, dubbed the A380neo, has been shelved for the time being, as Airbus concentrates on a bigger version of the A350. “If they decide not to bring the

neo into play, we will buy more of the current A380,” Clark said on the sidelines of an Emirates news conference. “As the first batch comes up to retirement we will want to replace those with more 380s…If you replace over time it's a continuum of orders.” Clark said Emirates could increase its A380 fleet to 200 when the airline moves to Dubai’s second airport, although that switch is unlikely before 2023. “Whether that’s enough to persuade Airbus to keep the line going is up to them, they have got to sell more and are trying very hard to do that,” said Clark. CRUISING HEIGHTS June 2016

Investment Corporation of Dubai. Emirates’ total passenger and cargo capacity crossed the 56 billion mark, to 56.4 billion Available Tonne Kilometres (ATKMs) at the end of 2015-16, cementing its position as the world’s largest international airline. The airline increased capacity during the year by 5.5 billion ATKMs. With significant currency devaluations against the US dollar and fare adjustments following the reduction in fuel prices, Emirates revenue dropped 4 per cent to US$ 23.2 billion. The relentless rise of the US dollar against currencies in most of Emirates’ key markets had an US$ 1.6 billion impact on airline revenue, and US$ 1.1 billion impact to the airline’s bottom line. The airline managed increased competitive pressure across all markets to record a profit of US$ 1.9 billion, an increase of 56 per cent over last year’s results, and a healthy profit margin of 8.4 per cent, the strongest margin since 2010-11. Emirates closed the financial year with a healthy and new record of US$ 3.8 billion cash flow from operating activities. Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30 per cent of overall revenues. Europe was the highest revenue contributing region with US$ 6.5 billion, down 5 per cent from 2014-15. East Asia and Australasia followed closely with US$ 6.1 billion, down 9 per cent. The Americas region recorded revenue growth at US$ 3.3 billion, up 9 per cent. Africa and Gulf and Middle East revenue decreased each by 3 per cent to US$ 2.5 billion and US$ 2.3 billion respectively; and West Asia and Indian Ocean revenue decreased by 4 per cent to US$ 2.1 billion. dnata performance: In its 57 years of operation, 2015-16 has been dnata’s most profitable yet, crossing US$ 287 million profit for the first time. Building on its strong results in the previous year, dnata’s revenue grew to US$ 2.9 billion. dnata’s international business now accounts for more than 64 per cent of its revenue. Revenue from dnata’s UAE Airport Operations, including aircraft and cargo handling increased by 13 per cent to reach US$ 777 million. The strong revenue rise accounts for the effect of the 80-day runway closure at Dubai International airport (DXB) which dampened revenue growth in the previous year. dnata’s International Airport Operations division grew revenue substantially by 32 per cent to US$ 571 million, on account of increasing business volumes and newly acquired businesses in the Netherlands and Brazil.

GLOBAL DIGEST/AIRLINE

Hogan is now Aviation Group President and CEO necessitated the need for a dedicated team to manage our shareholding, and the delivery of wide-ranging synergies that are beneficial to all parties.” In the new management set-up, James Hogan, who has served as Etihad Airways President and Chief Executive Officer since September 2006, has been appointed as Etihad Aviation Group President and Chief Executive Officer. Under his leadership, the Etihad Aviation Group functions would be led by James Rigney as Group Chief Financial Officer, Kevin Knight as Group Chief Strategy and Planning Officer, Ray Gammell as Group Chief People and Performance Officer, and Robert Webb as Group Chief Information and Technology Officer. These areas would provide leadership, governance and strategic direction in their expert areas

Alitalia assessing relations with Air France-KLM

CRAMER BALL

Etihad Airways equity partner Alitalia is still considering the future of its long-term partnership with Air FranceKLM, which is slated to end in January 2017. The Air France-KLM/Alitalia tie-up covers passenger services between France, Italy, the Netherlands and beyond—as well as the marketing, sales and distribution of Alitalia’s belly capacity, currently performed by Air

France-KLM. However, in May 2015, Alitalia said it planned to end the agreement because it was imbalanced. “These agreements are no longer beneficial, either commercially or strategically, to the new Alitalia and its ambitious turnaround plan”, it said at the time, although it added that it was willing to negotiate better terms. Air France used to be a key Alitalia shareholder, but now holds less than one per cent of the Italian airline after Etihad Airways took a 49 percent stake in Alitalia. Speaking at a media briefing in Rome on May 18, Alitalia CEO Cramer Ball said: “We are working through the process now with our partner. What is important is that we must control our own destiny and do what is right for Alitalia. I can’t say much more.”

across all companies in the Etihad Aviation Group. Hogan added, “The new management structure will enable us to maximise opportunities for growth, revenue generation and cost control on a much bigger scale so that the Etihad Aviation Group continues to deliver to its fullest potential and for the benefit of its guests, employees and suppliers.”

WORLD ECONOMIC FORUM / BENEDIKT VON LOEBELL

Under the Chairmanship of Mohamed Mubarak Al Mazrouei, the Etihad Aviation Group Board of Directors recently announced the new management structure for the Etihad Aviation Group PJSC. Etihad Aviation Group Chairman, Al Mazrouei said that Etihad Airways had been steadily evolving into the Etihad Aviation Group for a number of years. This has been driven by the formation of new companies, including Etihad Airways Engineering, Etihad Global Cargo Management Company, the Global Loyalty Company, Hala Abu Dhabi and Etihad Airport Services. “The acquisition of minority equity stakes in Alitalia, airberlin, Air Serbia, Air Seychelles, Etihad Regional operated by Darwin Airline, Jet Airways and Virgin Australia, has also

Airlines launch iHateTheWait.com US airlines have been pressing the government to act to reduce the intolerably long security lines at the nation’s airports. Now, they’re even asking passengers for help by sharing their frustration on social media. Lines during peak hours at some airports have topped 90 minutes. The airlines already are warning customers to arrive at the airport two hours in advance and are afraid the situation will only get worse with a record number of travellers expected this summer. Airlines for America, the industry’s trade group, recently launched a website called iHateTheWait.com, encouraging fliers to post photos of the lines on Twitter and Instagram along with the hashtag #iHateTheWait. Presumably this will make Congress more aware of the problem — and let fellow travellers know what they’re in for when they get to the airport. The group’s spokeswoman Jean Medina, said the campaign was “raising awareness of the issue and serving as crowd-sourced (wait time) information.”

CRUISING HEIGHTS June 2016

GLOBAL DIGEST/AIRLINE

e way for the new Mak With the push of a lever and a little help from 380 pounds of explo-

sives, American Airlines imploded six buildings from its 1980s-era headquarters recently to make way for new development at its Fort Worth campus. Hundreds of American Airlines employees gathered on the roof of the parking garage a half-mile away to watch the collection of three-to-five-storey buildings fall. Groundbreaking at the site for a new $350 million headquarters complex is slated to take place this summer, with construction targeted to wrap up in the second half of

2018. The now-demolished buildings were constructed in 1983, four years after American relocated its headquarters from New York City to Fort Worth. The planned new headquarters will be closer to the company’s flight academy, integrated operations centre and training facilities, which are separated from the existing administrative buildings by State Highway 360 and require a short drive to access. In a message to employees, CEO Doug Parker said imploding the old headquarters is a step toward building a bright future for the company. “Sometimes, in order to move forward, you have to blow up the past and that’s what we are doing today,” said Parker, who was in Chicago to discuss solutions for long airport security lines. “There are great memories in the old headquarters, but there is an amazing future ahead in the new one.”

Fashion retailer Cole Haan to AA adds flair refresh of its crew uniforms debuting later this

As part of a total year, American Airlines announced a partnership recently with fashion retailer Cole Haan to design a line of complementary scarves, pocket squares and bags for employees. “The reality is our frontline employees are the most influential and powerful marketing tool we have,” said Fern Fernandez, American’s Vice President of Global Marketing. “We’re really excited to be the first (airline) to complement our employee’s uniforms with a design that’s unique to American.” The line being designed by Cole Haan will include scarves and handbags for women and pocket squares and attache cases for men. The accessories will be free of charge for more than 52,000 employees, including pilots, flight attendants, customer service agents and premium service representatives.

Iberia seeks to join BAFinnair-JAL JV Iberia is seeking to join fellow oneworld members British Airways (BA), Finnair and Japan Airlines (JAL) in their joint venture (JV). BA and JAL started a JV to coordinate Europe-Japan flights in 2012 and Finnair joined the JV in 2014. Under the JV, the airlines jointly coordinate schedules and fares and share revenue on services between

the European Union and Japan. Iberia’s joining the JV is subject to regulatory approval. JAL has applied to the Japanese Ministry of Land, Infrastructure, Transport and Tourism to grant antitrust immunity to the Iberia/JAL coordination. Iberia is set to launch 3X-weeky Madrid-Tokyo Narita flights on October 18, with plans to increase the number of flights in

New Delta CEO could pare overseas services Ed Bastian, Delta Air Lines’ new Chief Executive Officer, is considering cuts to international service as rising fuel costs and weak foreign economies make some routes unprofitable. “When you have oil prices rising, that takes a thin-margin route to a negative route pretty quickly,” Bastian said in an interview on Bloomberg TV. “You start to ask yourself the question, ‘Is that the right decision, and do you need to be doing it now?”’ Jetfuel prices have increased 59 percent since hitting a 12-year low on Jan. 20, according to data compiled by Bloomberg. Delta has said it may cut capacity as it seeks to reverse ED BASTIAN five straight quarters of declining passenger revenue for each seat flown a mile, a crucial yardstick for airlines. Trans-Atlantic sales fell 6 per cent in the first quarter after terrorist attacks and the euro’s decline against the dollar hurt sales in Europe, Delta said in April. Its Pacific revenue dropped 5 per cent. Bastian took over as CEO recently after serving for eight years as the airline’s President under Richard Anderson, who retired at age 61. While Bastian, 58, plans to further Anderson’s efforts to make Delta a more global carrier, rising oil prices may slow global growth in the short term, the new CEO said in the interview soon after taking over.

Philippine Airlines finalises order for the A350 XWB Philippine Airlines (PAL) has finalised a purchase agreement with Airbus covering the firm order of six A350-900s, plus six options. The A350 XWB will become the flagship of PAL’s future long haul fleet

CRUISING HEIGHTS June 2016

and will be configured with a premium three class layout. The airline will operate the aircraft on non-stop flights to the US, as well as on services to new destinations in Europe. “We are pleased to finalise this

the future. Iberia will operate the route with an Airbus A330-200 with an increased maximum takeoff weight of 242 tonnes, allowing for nonstop services to Tokyo. “Half a million Japanese tourists visit Spain every year, and the number of Spaniards travelling to Japan is growing significantly,” Iberia President and CEO Luis Gallego said. “With our nonstop flights and this joint business they will have greater opportunities and more benefits when travelling between Japan and Europe.”

‘From Russia to Love’

Malaysia Airlines establishes new holding company Malaysia Airlines is on track with in its reorganisation by overhauling its corporate structure and creating a holding company for its main businesses. The carrier's majority shareholder, Khazanah, said the holding company is to be called Malaysia Aviation Group (MAG). It will include four separate business units: Air Transportation Services, Ground Handling & Engineering, Aircraft Leasing and Talent Development. The newly-established Malaysia Aviation Group Bhd (MAG), an entity under Khazanah Nasional Bhd, will drive better transparency and focused management across its subsidiaries and improve operational efficiency. MAG is a global aviation group with subsidiaries and equity investments, organised into four distinct business segments: air transportation services, ground services, aircraft leasing and talent development. The air transportation services division, which houses Malaysia Airlines Bhd, Firefly Sdn Bhd, MASwings Sdn Bhd and MAB Kargo Sdn Bhd, will

be the largest contributing business segment. In a statement, Malaysia Airlines also said under the umbrella was the division MAB Kargo, providing standard, express and special cargo, which would apply for its own Airline Operating Certificate and would operate as a separate company as of 2017. The ground services and engineering division comprises AeroDarat Services Sdn Bhd and MAB Engineering, while MAB Leasing and MAB Pesawat are under the aircraft leasing division and MAB Academy is under the talent development division. MAG Chief Executive Officer Christoph Mueller said the new group would align structures and processes more consistently to the needs of its customers and raise overall efficiency.“Going forward, the new structure will support every business unit’s capability to access the capital market with its own value proposition,” he added.The team of board members of Malaysia Airlines, who remain unchanged, will also sit on the board of MAG.

It’s literally “From Russia to Love.” Two Boeing Co. 737 jetliners –flown by the bankrupt Russian Transaero recently flew into the US for a makeover. It was for Southwest Airlines that’s swapping some of its oldest models without spending lavishly. The carrier’s in the middle of acquiring 83 used Boeing 737-700s from around the world, the largest such haul in its more than four-decade history. Southwest and its US competitors — now awash in cash after earning record profits last year — are scouring developing nations for secondhand jetliners, as cheap fuel makes older, less efficient aircraft more economical to operate. United Continental Holdings is importing as many as two dozen used Airbus A319s from China. Delta Air Lines which pioneered the strategy, is studying taking used 737s as its Brazilian alliance partner, Gol shrinks and

restructures operations. The carriers have not cut back on new aircraft orders,

either in a buyer’s market for cutting-edge jets. Because the used planes do not need to be

important order and are now defining the final layout for the aircraft,” said Jaime J. Bautista, President & COO of Philippine Airlines. “With the A350 we will introduce a whole new level of comfort for long haul flights, with more personal space in all classes, a quieter cabin and the very latest on-board amenities. At the same time we will benefit

from the A350’s enhanced efficiency and ability to fly nonstop on even our longest sector from New York to Manila, all year round.” “The order from Philippine Airlines underscores A350 XWB’s position as the aircraft of choice in the larger twin aisle category,” said John Leahy, Airbus Chief Operating Officer, Customers. “The A350

XWB has set new standards, combining extra-long range capability with the lowest operating costs of any aircraft in its class. It will be the perfect aircraft for Philippine Airlines to reinforce its position as one of Asia’s leading premium carriers, especially on its longest intercontinental routes.”

CRUISING HEIGHTS June 2016

flown heavily to recoup capital costs, they can be added selectively to routes so airlines have more schedule flexibility and can improve on-time performance. Older planes have lost their stigma in the US during the last 15 years as four of the largest airlines filed for bankruptcy. To cut costs, they deferred orders and made do with planes they previously would have swapped for newer models. They’ve expanded the practice even as fortunes have reversed this decade, taking advantage of sophisticated maintenance operations to extend service. The trend is adding to a topsy-turvy global aviation market for the leading manufacturers, Boeing and Airbus. They already face slowing sales as airlines navigate currency fluctuations and sub-$50-a-barrel oil, which has reduced the incentive to buy more fuel-efficient aircraft.

GLOBAL DIGEST/AIRLINE

engines. Together, these latest technologies translate into unrivalled levels of operational efficiency, with a 25 per cent reduction in fuel burn and emissions, and significantly lower maintenance costs. For passengers the extra-wide cabin offers more personal space in all classes, including 18-inch wide seats as standard in economy class. With this latest order, Airbus has recorded 803 firm orders for the A350 XWB from 43 customers worldwide, making it one of the most successful widebody aircraft ever. So far 20 A350 XWBs have been delivered to five customers worldwide.

AIRBUS

China Eastern orders 20 A350 XWBs

China Eastern Airlines has signed a purchase agreement with Airbus for 20 A350-900 aircraft, making the airline the latest customer for the aircraft. The carrier operates one of the largest Airbus fleet in the world with nearly 300 Airbus aircraft in service, comprising the A320 Family and A330 Family. The A350 XWB is the world’s latest generation airliner and the newest member of Airbus’ modern, comfortable and efficient wide-body product family. It features the latest aerodynamic design, carbon fiber fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB

AIR FRANCE

Air France-KLM warns of ‘highly uncertain’ travel market

Air France-KLM warned of a turbulent year ahead, with downward pressure on ticket prices and negative currency impacts. The Franco-Dutch airline group reported a €99m operating loss for the first quarter of this year, which was better than analysts’ expectations and a sharp improvement on the €266m loss one year earlier. It became the latest European airline to warn of excess capacity and a “highly uncertain” travel market following the Brussels terrorist attacks in March. Pierre-Francois Riolacci, Chief Financial Officer, said:

“We see a market under pressure, which has gradually become more under pressure, and we are being very, very cautious, particularly regarding the second quarter.” Earlier, Lufthansa trimmed its capacity growth plans because of “significant pricing pressures”. Lufthansa reported a net loss of €8m for the first quarter. International Airlines Group, parent of British Airways, has “moderated” its capacity growth plans for 2016 because of weaker demand following the Brussels attacks.

CRUISING HEIGHTS June 2016

Meanwhile, Jean-Marc Janaillac was recently named as Air FranceKLM’s new Chief Executive, succeeding Alexandre de Juniac, who caused surprise in April by announcing plans to step down to become head of the International Air Transport Association, the main representative body for airlines. According to the Fimancial Times, Janaillac is taking on one of the toughest jobs in global aviation, with Air France-KLM under pressure from fast-expanding Middle East carriers such as Emirates Airline and European budget airlines including easyJet. One of his first tasks will be to start talks with the Air France pilot unions, to try and push through another round of costcutting measures.

GLOBAL DIGEST/OEM

AIRBUS

FAA approves A350 XWB for ‘beyond 180 mins’ ETOPS “Smart glasses” show future of Airbus’ innovative cabins Airbus is providing immersive experiences with the company’s passenger cabins of tomorrow – leveraging “smart glasses” that integrate state-of-the-art 3D data technology for virtual, interactive tours of future aircraft interiors and their advanced functionalities. “Visits” with smart glasses – developed by Airbus virtual reality experts together with the company’s cabin marketing team – already are proving to be a major success with customers during trips to Airbus facilities, as well as with trade show attendees. At the heart of the smart glasses is a high-resolution smartphone, which features a special Airbus app. The smartphone is clipped to a headset and once the app is launched, the virtual reality experience can begin. By focusing on a specific point, the user decides where to go – choosing from different aircraft, first or business class, galley concepts and more. Inside the virtual cabin, visitors can pull out galley units, take a closer look at the lavatory or zoom in on details. Additional apps offer the possibility to compare seat colours, mood lighting designs and other options. Move your head up, down, or to the side and your view moves along the virtual cabin wall accordingly. The demonstrator was first used at the Aircraft Interiors Expo held April 2015 in Hamburg, Germany and generated significant attention – leading to further development. By the following September, when Airbus attended the APEX EXPO cabin event in Portland, Oregon, USA, the glasses already offered a much wider range of information. “We couldn’t take the large physical mock-ups, but we were able to present all Airbus aircraft types complete with a cabin and all innovations,” explained Denise Kühl of Airbus’ aircraft interiors marketing team. “Our stand was more successful than ever at this important cabin event. The glasses were a big hit.” Soon, 15 sets of smart glasses will be in operation worldwide with Airbus’ local customer support and airline marketing teams in Dubai and Washington, DC – to be followed by Beijing, Tokyo and Hong Kong.

The US Federal Aviation Administration (FAA) has approved the Airbus A350900 for ETOPS (Extended-range Twin Engine Aircraft Operations) ‘beyond 180 minutes’ diversion time. This approval means that when the first FAA-affiliated operators start to take delivery of their A350s in 2017 they will be able to serve new direct non-limiting routings, compared with a standard 180 minute ETOPS diversion time. It also means that now the A350 XWB is approved by both EASA and the FAA for beyond 180 minutes ETOPS. This FAA approval, which includes ‘ETOPS 180min’ in the basic specification, also includes provisions for up to ‘ETOPS 300min’ – corresponding to a maximum diversion distance of 2,000 nautical miles (nm) at one-engineinoperative speed under standard atmospheric conditions. Later this year, once the type accumulates additional in-service experience, it will be granted a further provision for ‘ETOPS 370min’ from the FAA, which will extend the maximum diversion distance up to 2,500nm. The ETOPS 300min option will, in particular, facilitate more efficient transoceanic routes across the North and Mid-Pacific – such as from South-East Asia to US, and Australasia to the US.

American Airlines receives its first US-produced Airbus aircraft The first delivery of an A321 aircraft from the Airbus US manufacturing facility to American Airlines took place on May 17, in Mobile, Alabama. On hand for the occasion were executives from Airbus and American Airlines and representatives of the more than 350 employees at the facility. Bob Lekites, Executive Vice PresidentCustomers, Airbus Americas said, “The

relationship between American Airlines and Airbus is a long and successful collaboration to provide the most modern, fuelefficient aircraft for both of our customers. American Airlines already operates the world’s largest fleet of Airbus aircraft and the largest A321 fleet. With this delivery, we are adding a very special aircraft to those already sporting the American livery

CRUISING HEIGHTS June 2016

– an Airbus aircraft built here in the USA. This is the first of many American Airlines airplanes to be delivered from Mobile, and we are proud it will join a growing, thriving fleet.” Demonstrating the adage “The Sun Never Sets on Airbus Manufacturing” – Airbus aircraft are now produced around the clock, 24 hours a day, at facilities in: Mobile, Alabama; Hamburg, Germany.

GLOBAL DIGEST/OEM

US bans e-cigarettes from checked bags The US Transportation Department is to permanently ban passengers and crew members from carrying e-cigarettes in checked baggage or charging the devices onboard aircraft. US Transportation Secretary Anthony Foxx cited a number of recent incidents that show the devices can catch fire during transport. Passengers may continue to carry e-cigarettes for personal use in carry-on baggage or on their person, but may not use them on flights. "Fire hazards in flight are particularly dangerous," Foxx said in a statement. "Banning e-cigarettes from checked bags is a prudent and important safety measure." The rule covers battery-powered portable electronic smoking devices including e-cigarettes, e-cigars and e-pipes, but does not prohibit passengers from transporting other devices containing batteries for personal use such as laptop computers or cell phones.

The rule makes a temporary ban instituted in November last year permanent. In August 2014, an e-cigarette in a passenger's checked bag in the cargo hold of an aircraft caused a fire forcing an evacuation of the plane at Boston's Logan Airport. In January 2015, a checked bag that arrived late and missed its connecting flight was found to be on fire in a baggage area at Los Angeles Airport. The incident was blamed on an overheated e-cigarette inside the bag. The government said the danger has been worsened by the growing trend of users modifying and rebuilding their reusable e-cigarette devices and swapping components, which may include the use of batteries, heating elements, and electronic components. In March, the US Transportation Department separately banned the use of electronic cigarettes on commercial flights.

SkyWest, Trans States continue waiting China to open lower out MRJ delays altitude airspace China moved towards further opening up the country's lower altitude airspace for civilian use, a step that could spur growth in its general aviation industry by making it easier for smaller aircraft to fly. The State Council, the country's cabinet, announced the move recently in a statement posted on the Chinese central government's website. The statement did not give details. The move was announced as a guideline and will become law once the country's aviation regulator completes detailed rules. Opening the airspace will benefit China's tourism, emergency medical services and pilot training sectors, which operate light aircraft and helicopters. Beijing simplified flight approval procedures for private aircraft in November 2013, a move which was seen as the first step for the gradual opening up of its lower altitude airspace which is now controlled by the military. The country will have over 500 airports for small aircraft only, and more than 5,000 private jets, turboprops and helicopters by 2020, the cabinet said.

XINHUA

Despite repeated delays and concern over scope clause restrictions, the two largest customers for Mitsubishi Aircraft Corporation MRJ — Utah-based SkyWest Inc and St Louis-based Trans States Holdings — are sticking with the Japanese company for the order of MRJ90. The two US regional airline operators, however, could be forced to begin making decisions on altering their orders as soon as next year. Both the airlines, together hold 150 (100 for SkyWest and 50 for Trans States) of the 223 firm orders for the MRJ90, which is presently in flight testing. But the MRJ90 is too heavy to be operated under contract for a major US airline because of pilot labour contract scope clauses. SkyWest CEO Chip Childs said that his carrier was more interested in the MRJ90 than the smaller MRJ70. The plane was likely be configured with 76 seats for the US market. “In my view it’s a pretty big if” whether scope clauses would be changed to allow the MRJ90 to be operated by US regional airlines, he said, adding, “our job is to make sure (the weight issue) is on the table” when major airlines negotiate new contracts with pilots’ unions. Trans States’ President Richard Leach said January 2019 “is sort of our target” for taking delivery of the MRJ. But he conceded that Trans States would have to make a decision on switching to the MRJ70 about 18-24 months before the planned first delivery.

CRUISING HEIGHTS June 2016

Turboprop can be an option: ATR

Ashish Saraf wins Maxell award Ashish Saraf, Vice-President, Industry Development, Strategic Partnerships and Offsets at Airbus Group India received the Maharashtra Corporate Excellence (Maxell) award for business leadership. “Aerospace has been my passion since childhood days and throughout my professional career I have tried to contribute to this field and to India in whatever way I could. I am honoured to receive this award as it shows that following one’s dreams is the pathway to success,” said Saraf. At Airbus Group, Saraf drives the group’s existing Make in India initiatives and conceives new ones across all its three divisions in order to increase their industrial footprint in India.

AWARDED: Ashish Saraf, Vice President – Industry Development, Strategic Partnerships and Offsets at Airbus Group India receiving the Maxell award for Excellence in Business Leadership.

fuel efficiency of the newest generation ATR -600s are unrivalled.” Minneapolis-based Mesaba Aviation’s order was the last largest order of US turboprops (50). But de Castelbajac thought that ATR could gain market share despite only having FedEx as an US customer. There are currently 300 turboprops flying in the US with an average age of 21 years, said de PATRICK DE CASTELBAJAC Castelbajac. “More than 400 regional routes have been cancelled since 2006,” he French-Italian aircraft manufacturer said. “And regional jets don’t have ATR started a demonstration tour to the economics to fly shorter turoprop show how its 50- to 78-seat ATR turroutes because they’re uneconomical. boprop family aircraft can be an option We want to restore air connectivity, and for airlines looking for lower operating we feel we have the right aircraft.” “If costs and eco-efficient operations. I’m conservative, there’s a turboprop ATR CEO Patrick de Castelbajac replacement market of 250 if you’re not (see photo) pointed out that more than replacing regional jets,” said de Castel400 regional routes have been canbajac. “But with Regional Jets replacecelled across the United States since ments, that potential jumps to 500. I 2006. “As of today, some 2,000 regioncan’t say that ATR’s market share will al aircraft operate in the U S, mainly be less. It won’t be 90 per cent like regional jets,” he stated. “Over 30 per Asia, but 70 to 75 per cent in North cent of the routes operated by regional America is achievable once people get jets in the US are below 300 miles, a to fly on it and see the economics.” range where the operating costs and

Brazil may relax regulation on foreign control of airlines In the wake of a continued downturn in Brazil’s economy, combined with the worst crisis the aviation industry has witnessed there in years, the Brazilian government could, under the leadership of the current Vice President, Michel Temer (see photo), relax the regulations surrounding controlling stakes in local airlines to allow greater foreign control. Current legislation restricts foreign ownership to a maximum 20 per cent stake in any Brazilian airline. Currently, Brazil is under the leadership of Dilma Rousseff who, in March, issued a decree allowing the limit of foreign ownership to be increased to 49 per cent. However, this was only permissible in instances where the country of origin of the foreign investor allowed reciprocity to Brazilian investors. This severely

CRUISING HEIGHTS June 2016

MICHEL TEMER

restricts the opportunities to invest as many other countries limit foreign ownership in their aviation sector for both strategic and security reasons.

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First E190-E2 completes maiden flight ahead of schedule

he E-Jets E2 programme reached another important milestone recently with the completion of the maiden flight of the E190-E2. The flight was originally scheduled to take place during the second half of this year. The aircraft took off from Embraer’s facility in São José dos Campos and flew for three hours and 20 minutes. The flight occurred just three months after the E190-E2 made its public début at a rollout ceremony at the factory in late February. The inaugural flight marks the beginning of the certification campaign for the E190-E2, the first of three new second-generation E-Jet models. The E190-E2 is scheduled to enter commercial service in 2018. “A first flight is always an emotional occasion, no matter how many you witness over the years. In this particular case, we are not only keeping our promises to the market, we are going beyond by being a few months ahead of schedule. I want to thank each and every Embraer employee who is participating in this project,” said Frederico Fleury Curado, Embraer President & CEO. “What a first flight! Today, all of us at Embraer should be proud and thrilled of this remarkable achievement. Watching the first E190-E2 take to the skies means we are paving the way for a bright future in commercial aviation. I’m certain that the market will show even greater interest not only for E190-E2, but also for the other E2s as well,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. Embraer Captain Mozart Louzada commanded the aircraft along with First Officer Gerson de Oliveira Mendes, and Flight Test Engineers Alexandre Figueiredo and Carlos Silveira. The flight evaluated aircraft handling and performance characteristics with the crew analyzing a significant number of flight parameters, including speed, altitude and landing gear retraction. This was made possible by the high level of maturity that the E2 reached during programme development through the extensive use of digital modeling simulations and ground and static tests that employed rigs and an iron bird. “There are always a lot of expectations with a first flight and today’s was no exception. The flight was very smooth. We were able to significantly open the flight envelope by flying at Mach 0.82, climbing to 41,000 feet and retracting the landing gear and

flaps, and engaging the fly-by-wire in normal mode. All of these demonstrate that the E190-E2 project is very mature and robust, and exceed all performance targets,” said Captain Louzada after the flight. The aircraft that flew is the first of four prototypes that will be used in the E190-E2 certification programme. Two additional aircraft will be assigned for the E195-E2 certification process that will lead to entry into

commitments from airlines and leasing companies: 267 are firm orders and 373 are options and purchase rights. The E-Jets family of aircraft is the leader in the up-to-130-seat aircraft category with more than 50 per cent worldwide market share. Embraer E-Jets are currently in service with some 70 customers from 50 countries. E-Jets E2s represent the best of new technology in a proven platform. The application of advanced technologies for engines, wings, and avionics sets the E2s apart by providing airlines with the most efficient airplanes in the category yet maintaining commonality with current-generation E-Jets. Enhancements include new aerodynamically-advanced high-aspect ratio distinctivelyshaped wings, improved systems and avionics, fourth generation full fly-by-wire flight controls, and Pratt & Whitney’s PurePow-

service in 2019. Three more aircraft will be used to certify the E175-E2 which is scheduled to enter service in 2020. The E190-E2 has the same number of seats as the current-generation E190 and can be configured with 97 seats in dual class or 106 seats in a single-class layout. It has 400 nautical miles more range than the current-generation E190 and gives operators the ability to fly the aircraft up to 2,800 nautical miles. Since the E-Jets E2s were launched in June 2013, the programme has logged 640

erTM Geared Turbofan high by-pass ratio engines (PW1700G on the E175-E2, PW1900G on the E190-E2 and E195-E2). These combine to generate double-digit reductions in fuel consumption, emissions, noise, and maintenance costs, as well greater productivity though less scheduled maintenance downtime. E-Jets E2s will achieve similar costs per seat as larger re-engined narrowbody aircraft but with significantly lower costs per trip. Those savings will create new opportunities for lower-risk development of new markets and fleet right-sizing.

CRUISING HEIGHTS June 2016

The Brazilian maker of regional jets Embraer may ask the World Trade Organisation (WTO) to probe whether government subsidies enabled Canada's Bombardier Inc to offer its C-Series aircraft to Delta Air Lines Inc at below the production cost. The move has reportedly prompted by Delta's recent order for 75 Bombardier CS100 aircraft, an order valued at $5.6 billion based on list prices. The Canadian planemaker has a $1 billion commitment for investment from Quebec's government and is negotiating for federal aid as well. "This causes too big of a distortion in the market," said Paulo Cesar de Souza e Silva, Head of Embraer Commercial Aviation. "We are analysing the situation, looking for more information and already in talks with the Brazilian government." Bombardier's second-quarter results would include an onerous contract provision to be recorded as a non-cash charge of $500 million in conjunction with 127 C Series purchase agreements, according to a company filing. The 127 orders include the 75 aircraft that Delta is purchasing, as well as 45 that Air Canada agreed to buy in February. "This shows Bombardier aggressiveness and raises suspicions that Bombardier offered its CS100 for a price below cost," Souza e Silva said. "It's too hard to compete with the government of Canada. Such discounting is a common industry practice (look no further than the smashing deal Boeing gave United for those 25 additional 737-700s), and the selling of products under marginal costs is technically allowable under WTO rules. The two potential issues that arise are first the question of "dumping," which specifically governs situations when foreign competitors sell below cost in another country in order to win market share and harm the domestic industry. Since Bombardier didn't sell any CSeries aircraft in Brazil, there isn't really much relevance for dumping. The second potential issue, however, is if the discounts were artificially enabled by illegal subsidies from a government. Bombardier was on the brink of bankruptcy when it was trying to sell the CSeries at a normal discount, and was in no position to be able to offer the kind of pricing it did to win business from Air Canada and Delta.

Boeing opens 777X composite wing factory Boeing has inaugurated a partially automated 777X Composite Wing Centre it built at its campus in Everett, Washington – the result of $1 billion in investment and 14 months of construction work. Boeing said the building required approximately 4.2 million hours of construction time. The facility “is more than 27 acres under one roof — the equivalent to 25 (American) football fields,” Boeing said in a statement. “It will contain three of the world’s largest autoclaves. Each will be big enough to fit two 737 fuselages inside.” However, it’ll be a while before 777X production begins. Boeing says it has received 320 orders and commitments so far for the wide-body plane, which can accommodate up to 425 passengers in its 777-9 configuration. The first delivery is targeted for 2020. The 777X’s 114-foot-long wings will be built up from carbon composite material, layer by layer, with the aid of automated fiber placement machines from Electroimpact. The composite pieces will be trimmed and cooked to completion in a 120-foot-long oven known as an autoclave where each part is heated to a temperature of 350 degrees Fahrenheit for curing, in a chamber that’s pressurised with nitrogen and heated with natural gas. One of the autoclaves has been installed already, and two more are expected to join the line by around 2020. Much of the work of assembling the cooked parts into complete wings will be done by Electroimpact’s robots. Once the wings are put together, they’ll take a short trip to Boeing’s final assembly building – which has almost four times as much square footage as the wing centre and ranks as the world’s biggest building by volume. Boeing decided to assemble the 777X in Everett in 2014 after winning $8.7 billion in state tax incentives through 2040 and getting labour unions to agree to contract concessions. Those arrangements have become the subject of renewed debate in light of Boeing’s moves to trim its workforce, plus recent reports about the details of the tax deal.

B737 MAX makes first international journey for flight testing The B737 MAX 8 has marked a key achievement after completing high altitude flight testing in La Paz, Bolivia. It’s the first international trip for the 737 MAX flight-test fleet. The airport’s 13,300-foot (4,050-meter) altitude tested the MAX’s capability to take off and land at high altitudes, which can affect overall airplane performance. “The engines and other systems performed well, as expected, under extreme conditions. That’s exactly what we wanted to see,” said Keith Leverkuhn, Vice President and General Manager of the 737 MAX programme, Boeing Commercial Airplanes. Flight testing for the 737 MAX is on schedule with three test airplanes having completed more than 100 flights combined. The fourth and final test airplane will make its first flight in the coming weeks. The programme remains on track for first delivery in the third quarter of 2017.

CRUISING HEIGHTS June 2016

BOEING

Embraer mulls WTO probe into Bombardier aid

GLOBAL DIGEST/OEM

Boeing to deliver record number of Airplanes to Turkish Airlines Boeing is set to deliver a record number of airplanes this year to Turkey's flag carrier, Turkish Airlines. In total, the carrier will take delivery of six 777-300ERs and 20 NextGeneration 737-800s in 2016. "Turkish Airlines is one of the world's ascendant airlines and an established global network carrier. It has achieved this through various significant investments in its fleet which now stands at over 311 and growing," said Ahmet Bolat, Chief Investment

in the late 1960s, when the airline began operating DC-9, DC-10 and Boeing 707 airplanes. Over the years, Turkish carriers have also flown the Boeing 727, 757, MD-80 and the most modern 737 and 777 airplanes. Turkish Technic, a prominent subsidiary of the airline, is a world-class maintenance center for Boeing 737 airplanes, with certifications from regulatory authorities throughout the region and beyond.

COMMONS.WIKIMEDIA.ORG

and Technology Officer, Turkish Airlines. "The delivery of a further 26 Boeing aircraft this year, which form a substantial part of our long-haul and short-haul fleets, are integral to Turkish's continued growth and we look forward to introducing the new planes on our domestic and international network." Turkish Airlines and Boeing share a long history that goes back to 1945, with the arrival of the airline's first DC-3/C-47 airliners. Turkish Airlines entered the jet age

Boeing and China Airlines recently celebrated the delivery of the world's first cobranded 777 during a ceremony in Everett, marking the carrier's 10th 777-300ER (Extended Range). "We are delighted to celebrate 100 years of Boeing by working together with Boeing to accomplish the first co-branded livery 777-300ER," said Steve Chang, Vice President of Corporate Planning, China Airlines. "This is our 10th 777 from Boeing and since our first 777 entered into service in 2014, we have been exceedingly satisfied with its outstanding performance which was further affirmed by our happy passengers." In 2004, China Airlines became the first airline in the world to use Boeing's cobranded livery on its latest 747-400. That airplane was nicknamed the ‘Blue Whale’ by the airline and was the first co-branded twin-aisle airplane in the world. “The Boeing Company is truly honoured to celebrate yet another milestone delivery with China Airlines," said Ray Conner, President and CEO of Boeing Commercial Air-

TWITTER/ CHINA AIRLINES

Boeing, China Airlines celebrate delivery of first co-branded 777

planes. "It is fitting that the first co-branded 777 is delivered to China Airlines, especially as Boeing celebrates its centennial this year. The airplane is the perfect symbol of our enduring 50+ years of partnership.” Headquartered in Taoyuan, China Airlines is the largest carrier in Taiwan with a Group fleet of nearly 90 airplanes. The airline currently serves more than 13 million passengers annually to over 118 destinations across the globe.

CRUISING HEIGHTS June 2016

Boeing outlines strategy to raise profits Boeing Co’s top executives have laid out a five-year strategy to increase revenue and profits and to secure its future for the next 100 years, promising to boost efficiency, return cash to shareholders and expand the after-market services and parts business. But the executives did not provide details sought by analysts about new plane derivatives to counter competitive threats from Airbus and Bombardier. Boeing expects to lift profit margins to a double-digit percentage next year and has an “aspirational target… towards the end of the decade of getting to mid-teen margins,” Boeing Chief Executive Dennis Muilenburg said. The company is re-engineering itself to become more flexible and efficient in designing and building aircraft, using automation, 3-D printing and other measures. Muilenburg said these moves would allow Boeing to create a steady, sustainable business in what has historically been a highly cyclical industry. Boeing aimed to be not only a “global industrial champion but the industry leader in cash generation”, Muilenburg said.

GLOBAL DIGEST/DRONES

Draft guidelines for civil use of drones

Aviation regulator Directorate General of Civil Aviation (DGCA) has come out with draft guidelines for civil use of unmanned flying devices like drones. According to the proposed guidelines, drone users would have to secure a permit and an unique identification number (UIN) for their operations. “This circular lays down guidelines for obtaining UIN and operation of civil unmanned aircraft system (UAS)... DGCA will register all civil unmanned aircraft and issue a UA operator permit (UAOP) on case-to-case basis,” as per the draft guide-

lines.The draft guidelines are in the public domain for their feedback. The aviation regulator has proposed the UIN to be granted to an Indian citizen or a company whose chairperson and two-thirds of its directors are Indian citizens. According to the draft guidelines, operations involving unmanned aircraft (UA) at or above 200 feet AGL (above ground level) in uncontrolled airspace would require permits from the aviation regulator. Also, operation of civil UA in controlled airspace has been restricted under the proposed norms. However, civil UA operations below 200 ft AGL in uncontrolled airspace would not require a UAOP. “Civilian use of UAS includes damage assessment of property and life in areas affected with natural calamities, surveys; critical infrastructure monitoring, among others... UA (unmanned aircraft) operations present problems to the regulator in terms of ensuring safety of other users of airspace and persons on the ground,” said DGCA.

Traffic drones start trial flights To ease congestion in Noida city in the National Capital Region, the Noida traffic department is poised to officially launch drones. The trial for the unmanned aerial device was carried out at a school recently and the officials from the department said they would put it in use as soon as the need arises. The traffic department bought two drones — each costs `8 lakh — that would be used to help traffic policemen to monitor congestion in the event of long traffic jams or law and order disturbances in real time. Six traffic policemen were recently given training to handle the drones at the Police Lines in Greater Noida by trainers from Law Abiding Technology (LAT), a Delhi-based company which designed the drones. “We taught a group of constables and head constables how to fly and control the drone on the manual mode since they are freshers. Their performance was

Haryana has started using drones technology on a pilot basis to assess crop losses. “Drone technology will bring transparency and accuracy in assessment of crop loss. Moreover, it will also put an end to complaints lodged by farmers who accuse revenue officials of not making correct loss assessment,” said Haryana Space Applications Centre (HARSAC) Chief Scientist R S Hooda. He also said that crop loss assessment through drone technology was conducted on a pilot basis in few villages of Hisar and Gurgaon. “We used drones to assess wheat and mustard crop loss because of hailstorm and untimely rains,” Hooda added. “Haryana is the first state which is using drone technology for crop loss assessment. We are expecting more than 90 per cent accuracy in results and if this pilot project comes out successful, we can use it on operational basis in the future,” informed Hooda.

good, so now we will train them at the advanced

level,” said Ashu Yadav, Senior Manager, LAT. The traffic department is planning to get at least

Organ delivery drone in the making Chinese technology company EHang Holdings Limited has joined hands with US company Lung Biotechnology to develop and purchase 1,000 drones to automate organ transplant deliveries. Lung Biotechnology specialises in producing artificial lungs and other organs for transplants. The new partners would develop a modified version of EHang’s 184, the world’s first

Drones to assess crop loss in Haryana

autonomous drone capable of carrying humans, to optimise it for organ delivery. The EHang’s 184 is an autonomous drone that can carry a passenger more than 16 kms through the air at speeds of up to 105 kmph when a destination is entered into a mobile app. The companies have agreed to work together over the next 15 years under a programme called Manufactured Organ Transport Helicopter (MOTH) system.

10 more policemen trained, said Noida SSP Kiran S.

Drones to monitor pollution sources China has deployed three unmanned aerial vehicle at its environment monitoring station in Hebei to identify possible polluting activities and help cut down pollution in the province. Hebei, identified as one of the prime polluting sources for the capital Beijing with 22 million people who bore the brunt of polluted smog round the year. Cao Yaming, an engineer at the monitoring station, said these images would then be verified

CRUISING HEIGHTS June 2016

and the companies concerned punished if they are found to be breaking the law. “Flying at up to 3,500 meters off the ground with a top speed of 140 kilometers per hour, the UAVs can effectively monitor mountainous areas even under poor weather conditions,” Cao said. “They can make up for any shortfalls in human-led ground inspections and satellite remote sensing monitoring,” Cao added.

GLOBAL DIGEST/AIRCRAFT

Jewel in Boeing’s crown: Customised BBJ787-8

“T

his is the largest aircraft ever displayed at an NBAA-sponsored event,” said Boeing Business Jets (BBJ) President David Longridge. The plane that he was talking about was the first B787 Dreamliner with a customised VIP that was on show at the recently concluded European Business Aviation Convention & Exhibition (EBACE) in Geneva. For Boeing, it was a double celebration: it was BBJ’s 20th anniversary and the first outing of its first outfitted BBJ787-8. Longridge went on to point out that the “BBJ787 is an extraordinary airplane. The airplane really enables our customers to travel anywhere in the world in unmatched comfort. The BBJ787s advanced features such as lower cabin altitude, large dimmable windows and smooth ride technology combined with its exceptional performance make it an unbeatable airplane”. To be delivered to an undisclosed customer to enter into service later this year, the BBJ787 customisation was completed by Greenpoint Technologies in collaboration with Pierrejean Design Studio of Paris and aircraft acquisition and management provider Kestrel Aviation. While Greenpoint did the actual customization, Kestrel and Pierrejean created the designs that focused on the five traditionally recognized human senses. Their objective was to lessen the “physical toll that a passenger would experience in an aircraft capable of 17-hour, nonstop point-to-point flights anywhere on earth”. The work on the BBJ787 began way back in Jaunary 2013, according to reports, when the Washington-based Greenpoint Technologies invested a whopping $1 million in research and development that went into the understanding of IFE integration, electrical load along with sidewall attachment and window integration. A lot of work went into the customization. Greenpoint Design Director Annika Svore Wicklund was quoted saying that the collaborators in the project approached the

787 with an innovative mindset. To begin with, Greenpoint had to forget its experience with legacy metal aircraft because the B787 had a carbon fiber fuselage. There were other hurdles too: decompression and floor structure attachment to leather panels and the lack of hardwood banding on the cabinetry. So, Greenpoint went to Boeing for data on the 787 so that the VIP cabin could be installed. The all-electric 787 has an unique software architecture. There are around 26 miles of wiring with more than 17,000 terminals which require connection to the electrical architecture without causing power overloads or interference. Greenpoint Engineering VP Bruce Kay commented that his engineers had to do “extensive research to learn the unique features inherent in making

CRUISING HEIGHTS June 2016

changes to this complex aircraft”. The final product presents a world of high-end luxury. There is a grand entry foyer with high, domed ceilings, leather bulkheads, custom artwork and extensive accent lighting. The main lounge has a multi-use space for dining or relaxing with a number of divans, tables and 55-in. flat-screen monitors. The master suite, for example, comprises the bedroom and the master washroom that according to Greenpoint, was “a sanctuary for rest and rejuvenation”. There is a California king bed, oversized shower and dual sinks for two. The aircraft cabin has 18 lay-flat first class seats and six premium economy seats. Throughout the cabin are dedicated tablets for cabin control of everything from seats and entertainment to flight attendant requests. In addition, there are custom sleeping quarters for cabin crew. An elated Longridge commented that “Boeing Business Jets is thrilled to celebrate our 20th anniversary at EBACE. It all started in 1996 by setting up a formal business jets organisation and selling a customised 737. Now 20 years later we are successfully selling every commercial airplane that Boeing offers.” While the buyer remained unknown, it was reported that the aircraft would be operated Beijing-based Deer Jet and would be available for charters. Since last year’s EBACE, nine BBJs have been ordered, eight have been delivered and 10 have entered service, bringing the brand's numbers to 238 aircraft ordered, 215 delivered and 191 in service.

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No stops in passenger growth

omestic airlines flew 79.32 lakh passengers in April this year registering an increase of almost 21 per cent over the 65.59 lakh passengers flown by them during the same period last year. The data released by Directorate General for Civil Aviation also showed that during January-April 2016, the domestic carriers carried 309.35 lakh passengers as against 251.05 lakhs during the corresponding period of the previous year thereby registering a growth of 23.22 per cent. IndiGo increased its market share to 38.7 per cent in April 2016 from 38.4 per cent in the previous month and maintained its position as the largest carrier by passenger volumes. State-run Air India also improved its market share to 15.1 per cent in April from 14.7 per cent in March, while budget carrier SpiceJet saw its share go up marginally to 12.9 per cent from 12.8 per cent in the preceding month. Jet Airways posted a decline to 15.9 per cent in April from 17.6 per cent in March, while Go Air witnessed a growth to 8.5 per cent from 8.3 per cent in the previous month. Air Costa and Vistara saw a modest improvement to 0.8 per cent and 2.3 per cent, respectively while AirAsia Indiaâ&#x20AC;&#x2122;s share declined to 2.1 per cent

in April. The passenger load factor for April 2016 had on average increased compared to March 2016. Load factors of GoAir and IndiGo registered a growth of 1.5 and 0.7 percentage points (PP), respectively. Air India and Vistara gained 3.2 pp, while Jet Lite gained 1.3 pp. the only airline which registered negative growth was Jet Airways losing 0.6 pp. Air Pegasus which was the biggest loser in the previous month also showed positive growth of 1.5 pp. Load factors at SpiceJet continued to remain the highest for the eleventh consecutive month and remained above the 90 per cent mark for the tenth consecutive month. The overall cancellation rate was 0.44 per cent, a decrease compared to 1.29 per cent in March. Air Pegasus experienced the maximum cancellation at 14.22 per cent in April. The airline also experienced the maximum cancellation in March at 40.34 per cent. On-Time Performance (OTP) of scheduled domestic airlines was computed by the DGCA for the four metro airports: Bengaluru, Delhi, Hyderabad and Mumbai. Airline-wise OTP at four metro airports for the month of April 2016 showed that AirAsia had the best On Time Performance (OTP) and topped the

chart with 89.1 per cent while Air India was the worst offender with 79.3 per cent. Vistaraâ&#x20AC;&#x2122;s On Time Performance, which had the first position in March, slipped to third place in April at 84.9 per cent. During April, a total of 674 complaints were received â&#x20AC;&#x201D; down slightly from the 737 complaints in March. The number of complaints per 10,000 passengers carried for the month was 0.8. Air Pegasus and Air India had received the maximum number of complaints from the last three months, including April, while Vistara retained the last position. The reasons for complaints ranged from poor customer service to technical flight problems and baggage issues. For the first time, the monthly data provided details of the revenue earned and the number of seats sold by scheduled private airlines in the highest fare bucket. For Jet Airways, for instance, the Delhi-Dehradun sector accounted for 3.52 per cent of the revenue earned in the highest fare bucket among the 20 sectors reviewed. However, it sold the maximum number of seats in the highest fare bucket on the Kolkata-Chennai sector (1.08 per cent). Delhi-based IndiGo sold the maximum number of seats in the highest fare bucket (0.17 per cent) on the KolkataChennai sector.

Pax Load Factor (%)

Passenger load factors of domestic airlines (April 2016)

April-16

March-16 75.7 26

CRUISING HEIGHTS June 2016

IndiGo posts `579 crore Q4 profit I

nterglobe Aviation, which controls the country’s biggest airline by market share, IndiGo, posted a flat net profit of `579 crore in the fourth quarter of financial year 2015-16 on year-on-year basis owing to the impact of rupee depreciation and pressure on yields due to growing competition. In the same quarter last year, the airline had recorded a net profit of `577 crore. The airline also reported a net profit of `1,990 crore in financial year 2015-16, up 53 per cent from previous fiscal’s profit of `1,304 crore. Passenger revenue for the quarter under review was up 6.8 per cent at `4,060 crore as the airline carried 24 per cent more passengers on a year-on-year basis and improved its load factor by 2.3 per cent to 85.1 per cent. Fuel cost which comprises 40-50 per cent of the total expenses of the airline —

decreased by 14.7 per cent year-on-year to `1,023.6 crore during the quarter due to the lower crude prices in the international market. On an EBITDAR (Earnings before interest, taxes, depreciation, amortisation, restructuring or rent costs) basis, the company reported a profit of `1,548 crore as against `1,409.3 crore in the same quarter last year; a growth of 9.84 per cent on year-on-year basis. The board of directors have recommended a final dividend of `15 per share. “In the quarter ended March 2016, IndiGo has announced a final dividend of `15 per share. Including the interim dividend issued prior to the IPO, IndiGo has distributed `42 per share for the fiscal 2016 based on the shares outstanding at the year-end,” the airline said. The revenue per available seat kilome-

tre (RASK) for the quarter decreased by 9.5 per cent y-o-y to `3.64 when compared to `4.02. During the quarter the company increased its fleet size to 107 and its average fleet age stood at 4.6 years. During the quarter under review, IndiGo added seven aircraft including three Airbus A320neos and increased capacity by 19 per cent. The airline also planned to add 29 aircraft in financial year 2017 against 24 aircraft planned earlier, though issues regarding the engines of the A320neos remain. “We expect that the issue will be resolved before the end of this financial year,” IndiGo President Aditya Ghosh said. “We have started getting deliveries of A320neos. The A320neo will enable us to structurally reduce our costs as fuel continues to be the single-largest element of our cost structure,” said Ghosh.

Jet’s return to black SpiceJet on a roll

et Airways Group has declared the highest-ever annual profit in its history for the financial year (FY) ended March 31, 2016. That has marked the carrier’s return to profitability a year earlier than the target set in its turnaround plan two years ago. The consistently strong financial performance has enabled Jet Airways to reduce its debt by `1,680 crores during FY16. For the year, its net profit was a record `1,212 crore compared with a loss of `2,097 crore in the previous year, the company said in a statement. For Q4 of FY16, the company reported a net profit of `426 crores, compared to a loss of `1,803 crores for the same period last year. The Q4 result marks the company’s fourth straight quarter of profitability. Commenting about the return to profitability, Naresh Goyal, Chairman, Jet Airways, said: “Jet Airways has been revitalised as a business in the last two years. Our focused efforts have resulted in significant improvement in operational performance leading to record profitability.” The carrier, part-owned by Abu Dhabi’s Etihad Airways, said lower fuel costs and higher aircraft use helped it swing to a profit in the year but warned that growing domestic competition was putting pressure on yields. “We are committed on delivering an enhanced guest experience and leveraging the commercial and operational synergies from our partnership with Etihad Airways,” Goyal added. James Hogan, Vice Chairman, Jet Airways and President and Chief Executive Officer, Etihad Aviation Group, said: “We are very satisfied with the strong operational and financial performance achieved by Jet Airways. The return to profitability is a result of the effective partnership between Jet Airways and Etihad Airways. Between the two airlines, we have been able to provide a compelling option of wider combined network and exceptional guest experience for travellers to and from India.” He went on to add that “Etihad Airways is committed to its partnership with Jet Airways and is focused on driving further synergies, along with other Etihad Airways Partner airlines”.

“L

ast quarter has been the best-ever quarter. We have cleared all financial dues and will start on a clean slate,” said SpiceJet Chairman and Managing Director Ajay Singh. The low-cost carrier announced a net profit of `73 crore for the quarter to March; and said that this was despite the airline’s onetime expense of `173 crore towards stabilisation and reliability of its fleet. According to the airline, the net profit is an improvement of 225 per cent over the same quarter last year. SpiceJet reported a net profit of `407 crore for financial year 2016 as against a loss of `687 crore for financial year 2015, a positive growth of `1094 crores. SpiceJet generated operational revenue of `1,475 crore in the current quarter, a growth of 86 per cent over same quarter last year. For financial year 2016, SpiceJet posted an operational revenue of `5,088 crore; a reduction of three per cent over financial year 2015, while its capacity deployed reduced by 11 per cent over the same period. On an EBITDA (Earnings before interest, taxes, depreciation and amortisation) basis, SpiceJet reported a profit of `146 crore against a profit of `80 crore in the same quarter last year; and a profit of `640 crore for financial year 2016 against a loss of `397 crore during financial year 2015. On an EBITDAR (Earnings before interest, taxes, depreciation, amortization, restructuring or rent costs) basis, the Company reported a profit of `393 crore against a profit of `196 crore in the same quarter last year and a profit of `1,446 crore for financial year 2016 against a profit of `467 crore during financial year 2015. This is the fifth consecutive profitable quarter for SpiceJet since the challenges faced in December 2014. The airline has been recording load factors of over 90 per cent consistently over the last 11 months which is the highest in the industry, the release said. The operations have stabilised with on time performance around 90 per cent and cancellations rates being the lowest in the industry.

CRUISING HEIGHTS June 2016

NEWS DIGEST

ABOVE GROUND LEVEL  NEW GREENFIELD AIRPORTS COMING Government has approved the construction of 14 new Greenfield airports in the country. The airports would be built in Karnataka, Kerala,

Goa, Sikkim, Maharashtra, Uttar Pradesh, Madhya Pradesh, Puducherry and Gujarat. The government has also detailed route dispersal guidelines (RDG) for air transport services based on necessity for these services in different regions. In addition, the government has established the Airports Economic Regulatory Authority of India (AERA) to decide on charges with respect to aeronautical services delivered across the country. AAI INVESTS `15,000 CRORE FOR AIRPORT UPGRADATION For development and upgradation of airports, Airports Authority of India (AAI) has outlined a plan to invest `15,000 crore over the next four years. The outlay would include cost for installing solar capacities at several airports dotting the country. The plan was approved in April by the Civil Aviation Ministry, which has also created a four-member team to monitor the targets set in the plan. “The ministry has ordered formation of a committee with representation from the finance ministry to monitor it,” said a senior civil aviation ministry official. Of the `15,000 crore, `13,000 crore would be invested on upgradation, expansion and extension of 39 airports and about `2,000 crore is to be spent over revival and upgradation of airports in smaller cities. The rest is to be spent on installation of solar power capacity at various airports. JAMMU TERMINAL’S EXPANSION TO BE COMPLETED The expansion and modernisation

Alitalia starts a new journey

litalia’s plan to re-engineer the airline is paying off. After facing bankruptcy in late 2013, the airline has delivered the strong progress in 18 months. The new Alitalia (Alitalia-SAI), owned 49 per cent by Abu Dhabi-based Etihad Airways and 51 per cent by the former Italian stakeholders of Alitalia-CAI, began operations on January 1, 2015 following a €1.76 billion recapitalisation that saw the historic debt wiped out and a €560 million investment by Etihad Airways. A comprehensive three-year programme to rebuild the business and revitalise products and services in order to return it to profitability has seen, so far, the launch of new intercontinental, international and domestic routes; the introduction of new aircraft with new interiors; new airline partnerships, improved flight connections at Rome’s Fiumicino airport and a greater focus on customer service and improved products for air travellers in order to boost quality. In a move to revamp the airline further, Alitalia launched a new staff uniform. Created by Italian haute couturier Ettore Bilotta at his atelier in Milan, the new Alitalia collection has taken inspiration from the glamorous golden days of Italian fashion in the 1950s and 1960s and Italy’s rich heritage, culture and national identity. Cramer Ball, Chief Executive Officer of Alitalia, said: “We are introducing a new look which captures the spirit of Alitalia today as it continues on its journey of renewal and growth. In doing so, we also CRUISING HEIGHTS June 2016

celebrate its illustrious 70-year history. Our aim was to create a stylish collection which would represent Italian excellence around the world. This is a country at the forefront of global style and design. The new uniforms complement the renaissance of the Alitalia brand and the rejuvenation of its aircraft fleet and products for its customers.” Alitalia also launched a new global brand campaign with the worldwide premiere of a new television commercial. The television commercial celebrated the Italian airline as it faces the future with renewed vigour and vitality, following a successful restructure in 2014. It also introduced a series of enhancements and upgrades to its inflight product and fleet. Alitalia’s Chairman Luca Cordero di Montezemolo said, “Positive and meaningful change continues at pace in every area of the business. Alitalia has a strong new commercial focus and greater emphasis than ever before on delivering signature Italian hospitality.” He went on to add that the carrier was “creating a bright future by delivering the transformation that we promised. Alitalia today is a modern, leaner and energised business. We are reducing losses and will be profitable by 2017 if we remain totally focused”. Alitalia’s recently released financial results for 2015 showed that losses reduced by €381 million in 2015, in line with targets set in the industrial plan. Alitalia’s market share to and from Italy also grew to more than 30 per cent in 2015, up four per cent in 2014.

ABOVE GROUND LEVEL  of Jammu Airport Terminal building is likely to be completed by the end of this year. Around 70 per cent work of the project has been finished. With the completion of the project, the total area of the Jammu Airport Terminal building would be expanded from 6,500 sq mt to 14,500 sq mt with raised passenger capacity from 360 to 720 passengers per hour besides additional facilities like escalators, shopping complex at arrival as well as departure hall, sources said. PUNE AIRPORT TO EXPAND To expand the capacity of the LohegA factor in Alitalia’s new success has been the strength of its partnerships with Etihad Airways and participation in Etihad Airways Partners alongside Etihad Airways, airberlin, Air Serbia, Air Seychelles, Etihad Regional operated by Darwin Airline, Jet Airways and Niki. Alitalia Vice Chairman and President and CEO of Etihad Aviation Group James Hogan said: “Few airlines have undergone

such radical change as the new Alitalia and it is now reaping the benefits of a robust new strategy built around dynamic and effective partnerships. After some difficult and challenging years, Alitalia has a great story to tell. We promised to create a world-class airline.” Alitalia also said that it would invest a further €400 million in 2016 across its fleet and cabins and in the areas of technology and infrastructure.

WAI encourages potential women aviators

omen in Aviation’s President Radha Bhatia hosted the first conference of the newly-formed India chapter of the US-based non-profit organisation: Women in Aviation. The theme of the panel discussion was, “The Invisible Force”. The core objective of the conference was to evaluate skill requirements and view best practices in skill development of the aviation industry. At the conference, Radha Bhatia, President, Women in Aviation International (WAI) India Chapter said, “We at Women in Aviation International (India Chapter) are very positive about the first conference. With the industry and a few stalwarts’ support we will encourage

young women to consider aviation as a viable career opportunity. By bringing the International chapter to India we will get the best talent and knowledge base to skill and empower the women of today.” Neelam Pratap Rudy, Vice President, Women in Aviation International (WAI) India Chapter said, “A Developing Nation has to employ and skill women for its growth. In India only 17 per cent contributed to GDP according to world’s standard 37 per cent. Aviation and connectivity is the barometer of the economical health of a country and more doors can be opened to women empowerment through skill development to bridge the gender gap in India.” CRUISING HEIGHTS June 2016

aon airport, Union Defence Minister Manohar Parrikar has sanctioned 15.84 acre defence land. Parrikar directed the AAI to start work without waiting for the bureaucratic process of transfer of land. The additional land would be used to park aircraft, which later help increase frequency of flights. The expansion would increase nearly 45 per cent capacity at the airport. “The expansion of Lohegaon airport will happen in two phases. The decision on the second and final phase of expansion will be taken in the next two months. No further expansion is possible because of security reasons,” Parrikar said. SAMBRA AIRPORT TO GET WiFi SOON The Sambra airport in Belagavi (Karnataka) would get wifi facility soon. In this regard, the airport authorities held discussions with Bharat Sanchar Nigam Limited (BSNL) following which a proposal was submitted. BSNL has also responded with a proposal which has been forwarded to the regional office of the Airports Authority of India, Chennai. The WiFi facility, once installed, can be accessed within a 50 metres radius at 10 mbps speed.

COVER STORY

Prabhakara Rao, Chief Executive Officer, Delhi International Airport (P) Limited (DIAL), considers himself a very lucky man. With a hint of a smile on his lips, and a glint in his eyes, Rao said, “We had the latecomer’s advantage…” The Delhi airport was aware of the mistakes that other airports around the world faced and took extra care not to fall for them. And look where it has taken it: the No 1 position among airports of its class in the world twice in a row. No mean achievement for an airport that was amongst the worst airports globally in 2007, said the CEO who was reminiscing about Delhi airport’s journey on the eve of its tenth birthday – May 3, 2016 — post-privatisation. The proud CEO has a story to tell me. He begins with a simple question: “Have you been to the airport recently?” Before I can acknowledge with a nod, he shoots his next question: “How many DIAL people did you see in the time you spent at the airport?” When I say, “None”, Rao gives me a beaming smile. “That’s DIAL for you. We are everywhere yet nowhere. That is how smooth the beginning or the end of your journey should be. We should not have to

intrude to set things right because the airport functions as it should.” That is why the tenth birthday is more than a milestone. While there is the international recognition that DIAL has earned, with its recognition by passengers, as the World No. 1 Airport (25-40 MPPA category) in the ACI ASQ (Airports Council International’s Airport Service Quality) for two consecutive years (2014 and 2015), the important fact that has to be remembered is that an institution has been created that can be compared to the very best in the world. And, it is all handled by Indians like you and me. Delhi Airport is ‘Made in India’: it happened well before being Indian was as fashionable and in vogue as it is today. That singular achievement – of being hailed as the No 1 airport for two years running — brought back memories of 2010 when CRUISING HEIGHTS was allowed a sneak peek days before the formal opening of the by now iconic and celebrated Terminal 3 (T3). At that time, GMR patriarch Grandhi Mallikarjun Rao had pointed out that the Delhi airport project was in the make-orbreak mould. It would catapult them into a different orbit and he was conscious of the weight of expectations. “We have set high

CRUISING HEIGHTS June 2016

H C TIWARI

“Ten for a bird, You must not miss”. So ends the traditional children's nursery rhyme about magpies. Indeed, after millions of fliers, several thousands of flights and awards aplenty, Delhi’s Indira Gandhi International Airport will not miss the next big bird that comes along. In its 10-year journey after privatisation, the airport has scaled heights unimagined making its mark as the No 1 airport in its class in the world – not once but twice in two consecutive years. It’s no mean feat. Tirthankar Ghosh finds out what makes Delhi Airport tick…

FROM OUR FILES: Cruising Heights, July 2010 covered the inauguration of Terminal 3. The cover shows GMR patriarch G M Rao.

benchmarks and I know big things are expected of GMR-DIAL.” To achieve high benchmarks – and be better than the best – GMR and DIAL sent out their brightest to travel the world and come back with a perspective. Their only brief: see, learn and think out of the box to

THE CREATORS OF T3: A file photograph shows I Prabhakara Rao (then CEO-Airport Development, DIAL) in the driverâ&#x20AC;&#x2122;s seat with P S Nair (then CEO-DIAL) beside him. The others in the photo were: K Kannan (Deputy Project Director, L & T), Koh Miaw Ling (Head - Finishes & Interiors), L Ravi (Chief & VP - Project Engineering and Development), M P Naidu (Project Director - L & T), Sujit Kumar Nag (AVP-MEP, Maintenance and Engineering), Roy Sebastian (AVP-Airports System), Anil Dhawan (VP-Construction) and Chai Tech Phua (VP-Airport Planning)

CRUISING HEIGHTS June 2016

COVER STORY COVER STORY tweak it to make it the best. So, there was plenty to learn from Incheon, Suvarnabhumi, Heathrow, Madrid, Frankfurt, Dubai and Hong Kong. Delhi Airport had to be as elegant as Changi, as smooth as Incheon, have the buzz of Suvarnabhumi and the business like professionalism of Frankfurt. With his eyes firmly set on creating a benchmark, Indana Prabhakara Rao, then CEO (Airport Development), DIAL, diligently executed the dream of the patriarch. Chosen because of his fearsome reputation for getting things done on time, Rao completed T3 in a record 37 months (Singapore Changi Airport’s T3 took 76 months while Heathrow’s Terminal 5 was completed in a whopping 60 months). And they were the most difficult 37 months. Yes, unlike Mumbai, Delhi was not as constrained for space but the regular operations of the capital’s airport had to go on along with all the construction activity. There were daily sunrise meetings and sunset meetings of all key personnel to take stock of the progress because that was the only way forward, he said. The forward movement has been maintained to this day. Over the years, however, that movement has seen a lot of tweaking and today, the focus is on pushing a multipronged strategy that has one aim: Providing a seamless passenger experience. A dedicated and consistent customer-focused approach has ushered in an experience that fliers do not easily forget. Rao and his team have transformed the non-aero business at the airport since taking over the operations in 2006, through providing fliers an experience-centric approach, by refreshing the gamut of travel retail offerings. These efforts have resulted in a 3.8 times growth in travel retail revenue to DIAL between

Pax (Mn)

Cargo

ATM’s

Financial Domestic Year

Internation- Total al

‘000 MT

‘000

2005-06

10.47

5.76

16.23

383.1

151.1

2006-07

13.79

6.65

20.44

389.5

185.2

2007-08

16.63

7.34

23.97

432.9

213.6

2008-09

15.07

7.77

22.84

426.3

217.4

2009-10

17.81

8.31

26.12

497.4

229.2

2010-11

20.67

9.28

29.95

600.0

255.6

2011-12

25.13

10.75

35.88

568.4

295.5

2012-13

22.80

11.57

34.37

546.3

280.7

2013-14

24.20

12.68

36.88

605.7

290.8

2014-15

27.45

13.53

40.98

696.5

300.9

2015-16

34.28

14.15

48.43

726.4

344.1

financial years 2007 and 2015. That single-minded approach, incidentally, has brought rich dividends to the world-class airport: Delhi has not only become the gateway to the country in terms of international destinations and passenger traffic and cargo volumes have risen by leaps and bounds. The airport presently handles the highest passenger and cargo volumes in the country – it serves 120 destinations through 50 international and nine domestic passenger airlines. In addition, there are four international and two domestic freighter airlines. The journey has not been an easy one, Rao reminded us (see interview). “It has,” he emphasized, “taken tremendous efforts to get through the last mile and sustain the top position in ASQ.” Indeed the challenges

CRUISING HEIGHTS June 2016

were many. Top of the list was the creation of a “world class” airport within an extremely tight timeline of 37 months. The other hurdles were: • Capacity enhancement with minimum interruption to existing operations at Terminal 1 and Terminal 2 • Making the airport boundaries encroachment free since around a 1,000odd families were living on the airport premises for more than five decades • Relocation of the city sewerage to avoid water-logging in the runway area • Getting the required manpower, material and machinery on site for timely execution of the projects As the airport developer, perhaps DIAL’s biggest challenge was mobilising 30,000 individuals from 15 countries. Arrangements

STEPS TO SUCCESS had to be made to provide housing in a co-located colony, with access to all amenities. The next big challenge was sourcing of material from 2008: Third runway commissioned in 20 countries; setting up fabrication yards at site; direct involvement in September: move enabled Delhi Airprocurement and logistics to mitigate sourcing related risks since sigport to handle A 380s, help ease connificantly large quantities of material was required. Above all, there was gestion and capacity. investment in key equipment; setting up of batching plants, hot mix plants, etc. on site. All this was part of setting up the infrastructure. Post the signing of 2009: New domestic Terminal-T1 D the Concession Agreement, GMR’s team was entrusted with the imcommissioned in April. Terminal takes mediate task of ensuring the smooth and seamless transition of aircare of domestic traffic and has enhanced port operations from the Airports Authority of India (AAI) to DIAL overall passenger service quality. with minimal disruption to the existing processes: that was Phase 1, according to the CEO. After the enhancements in the existing airside, terminal and landside infrastructure, and the commissioning 2010: New integrated terminal T3 commisof T3, IGIA underwent a magical transformation. It became, what sioned in July. This transformed IGI Airport the GMR team refers to as the “Gateway to Modern India” and the into a world-class airport. jewel of the gateway was Terminal 3, the world’s eighth largest terminal building with an integrated common user terminal for both International and Domestic passengers. 2014: With the airport’s focus on green iniPhase 2 involved construction of the infrastructure and that tiatives through the use of renewable energy, included, for example, overseeing the details. Not many know captive Solar Power Plant (2.14 MW) starts that the carpet used in Terminal 3 was woven by Indians —emphasising the fact that the work done by our own craftspersons functioning from January. The capacity of the was as good as the best in the world — at Brintons, a familyplant has since been enhanced to 7.84 MW. owned carpet-manufacturing business that was founded in 1783. Headquartered in Britain, the company believes in 2015: Air Cargo Logistics Centre — the first of the concept of thinking global and acting locally, hence the designing and weaving in Pune. The brief to Brinton’s its kind in the country – opened in May. was simple: T3’s carpet, said DIAL (Delhi International Airport Limited), should create a strong first impression Recognised as the World No 1 Airport (25-40 by illustrating Delhi’s rich historical past as well as its MPPA) in the ACI ASQ survey for two consecutive modern and vibrant standing in today’s world. The base of the design — and one that occupies years (2014 & 2015) — a testimony to the improvea large expanse of the airport’s arrival area — came ments in passenger service quality. from Google maps’ satellite view of Delhi’s Connaught Place (CP). Designed by Robert Tor Russell, CP is Delhi’s main commercial centre and adequately reflects what Lord Hardinge, the then Viceroy termed as “western architecture with an oriental motif”. The central circle of CP with • Delhi airport is the only airport in the country to roads radiating out of it formed what Rob

QUIZ TIME

Continued on page 36

have three runways, including South Asia’s longest runway • The airport has the largest automated multi-level car parking that can accommodate 4,300 cars • It is the only airport in the country to have high-speed metro connectivity: the Airport Metro Express • Only airport in the country to have a transit hotel located within a passenger terminal building • It has India’s largest Retail and Hospitality area spread across 30,000 sq mt • It is the only Indian airport to have a dedicated Airport Radio channel • Delhi airport has tallest ATC Tower (to be inaugurated shortly) • First airport to have a solar power plant, rainwater harvesting pits, sewage and water treatment plants • An international airport with the first Aerocity in the country

CRUISING HEIGHTS June 2016

COVER STORY

“We have a lot of pride and satisfaction with what we have done”

A man of few words, I Prabhakara Rao, Chief Executive Officer, Delhi Indira Gandhi International Airport, traced the challenges his team faced in the ten-year journey to becoming the top airport in its class in the world, to Cruising Heights

What’s the experience been like since you have been associated right from the conception? Actually GMR was the pioneer to create something like the Delhi International Airport in India! It has been a great experience...I remember in 2006 when we took over the airport. All of us know how it was: totally congested... And the wait time was always 45 minutes; there were lot of delays, and all that... We have come a long way; it is 10 years to 2016. Today, if you look back, there is a lot of pride and also satisfaction. I divide the 10 years in to three phases. Phase one was running the existing constrained airport: between 2000 to 2010. And while doing this, Phase two

cannot enter the other area without having a valid card. So, we tried to make the people understand: it was no longer putting a lock or opening with a key. The whole concept is different. And cameras, CCTVs...we have 3200 CCTV cameras inside the airport. If you imagine this technology is way together then. And we have a completely Inline Baggage System. The Baggage System we built handles 12,800 bags per hour. You can imagine the capacity we have built in that... it is a completely online system and highly sophisticated. In the Baggage System alone, we have 250 cameras. Suppose somebody introduces a bag or if somebody removes a bag, I will come to know about it. Such is the high level of sophistication.

is doing good’. That means there is total coordination among the stakeholders. You know, when we took over this airport in 2006, in the ASQ survey, we scored 2.9 out of 5 and we were the 101 airport (in the rankings). Today, we have scored 4.97 and we are the number one airport in our category. You can imagine the transformation – right from infrastructure development to transforming the people — that has taken place. We made everyone understand our service standards. It was a big task. You can say in 10 years, we actually trained every one. Now, the boat is steady. Now, we are planning to stabilize and sustain. It is a very big job. And, of course, in the process, we want to thank everybody. Everyone sup-

In all these 10 years, have you ever felt you should have done something differently?

In 2006, our assumptions were something different. At that time we thought that the LCC growth would be only 25 per cent; it has gone up to 55 per cent. If we had known that we would have done better. But you always have the latecomer’s advantage! You don’t do the mistakes that others have done. They scared me about baggage handling. London Heathrow had a problem. Hong Kong had issues. And Singapore did an extensive six-month trial before opening for public. But from day one, I did not find any issue. Our average is seven times better than the world’s average best. We are almost 99.9999 per cent successful! came in with the construction of new infrastructure. As you know, it was the 5.5 mn sq ft building that we had to complete in 37 months. Both happened simultaneously. Once that happened, what we had to think about was how to bring in the service levels. That was Phase three. If you look at 2006 and 2010, the whole technology has changed. Suddenly, it opened up a big, big... I remember that in Terminal 2, we had just nine aerobridges and the entire IGI (Indira Gandhi International) – so called best airport in the country. At that time, the Delhi airport was a big airport in India. When we opened in 2010, it had more than 48 aerobridges and if you take it as a multiple of 2, there are 70+ aerobridges available with 48 gates, which was a huge shift. At that time, there were no automatic gates. There are now 2000odd automatic gates. That means, you

The bags are somewhere in the check-in hall and the inspection happens (when they go up) on the third floor. The baggage then goes down to the -2 level below to be taken to the aircraft. You can see all three levels and there is perfect technological coordination. So, from 2010 to 2014 we took to educate. If you look at the airport, can you see how my team is working? Today, less than 2000 of my people are at the airport whereas the airport has more than 30,000 people working in it. All you see are those people, not DIAL persons. You see security people, you see airline people, you see ground handlers, you see construction people, you see immigration officers, but you don’t see a DIAL employee anywhere. You can feel their presence. Suppose, the toilet is not clean, you feel it. If it is clean, DIAL is doing a good job. If the air-conditioning is good, you are happy and (you say) DIAL

CRUISING HEIGHTS June 2016

ported us: the government agency, the airlines, the security people, the immigration department, everybody. What you see today is the culmination of all their efforts. Today, you are seeing the best airport in the world. But it took long (to become the best). We trained everyone: from the support staff to the immigration officers and even the security people — because we wanted to make sure about their soft skills and how we can deliver that. For us, the customer is God, passengers are God. Atithi devo bhawa: That is our principle. You are seeing the result of all our efforts today. And also in the last few years, we have brought in a lot of new technologies. That is very important. Our on-time performance — which is very important for any airport — was about around 42 per cent in 2006. Today, we are 82 per cent on an average. It is very important: if departure is 82 per cent that means arrival also has to be

the same. If the arrival is around 70 per cent that means as the airport operator, though you (an airplane) come late, I have to be able to manage your turnaround faster. It is airport OTP. It depends on another airport. Suppose, there is a delay in Mumbai or Ahmedabad, all that (effect) will come to me. But still, how do we manage that 82 per cent on time? Why it happens is because we have introduced Collaborative Decision Making. In fact, this is in very few European airports and some American airports. In Asia, we can say we are the first airport in South-east Asia to introduce this. We have not taken some programme and fitted it to our system. We developed this completely inhouse. What happens in Collaborative Decision Making is that all the stakeholders can see together. There is transparency. I know exactly what time the aircraft is going to land and from there, what time it is going to chocks-in, and what time I have to support chocks-out. So, (we know) what time he has to call the ATC. Pilot knows exactly what time he has to (perform) chocks out. He does not need to call the ATC and tell him what time he will be doing chocks-out. That is not required. Not only that. The entire staff knows; the airline staff knows, the ground handler knows, the airport operator knows, everybody knows what is happening. Now, with a complete automatic system, even the pilot can see what time he is going. The landing depends on runway and when that happens we also calculate how much time it actually takes to the chocksin. So, if you land at 10:40, by 10:55 you should complete chocks-in. So, these things have helped a lot. Now, we are planning for the future. Arrivals will also be introduced. Once the new ATC tower is activated fully, we want to bring arrival into the picture. That means the moment an aircraft takes off from Mumbai, we will know exactly what is happening. The second thing are the CUSS (Common Users Self Service) machines. Today, whatever equipment we develop within our airport, it is purely done by us at one-fourth of the cost. The CUSS machines available in the airport have been developed by us... the complete technology. Today, whatever IndiGo, SpiceJet or Jet is using, all are developed by us. With this technology development, we not only followed our Prime Minister’s Make-in-India, we Made-in-India by developing the technology in-house. A new thing that is coming up is: Doc Exchange. Once you get the air ticket in the e-mail,

you show the barcode and you will be able to go through. We are trialling this with IndiGo.

IndiGo will be the first to use it? Yes, we are planning for that. Also, you have seen Self Baggage Drop system. We are trying to develop a technology in such a way that it becomes cheaper and also useful for us. The trials are already on and we are happy. Once it is successful, we will introduce it in T3. Apart from that, we also did lot of improvements in... first time we put flap gates in T1, T2. The gates will open only at the time of boarding. What used to happen is that people used to hang around the boarding gate. Now, the gate will open when the boarding is announced. People will not be anxious and waiting. That will make the people comfortable. So, we are trying to introduce lot of technologies...

hub requires Fifth and Seventh Freedom rights. Then, people can come here, for example, from Singapore and fly to London. We can work as a hub. We need that as well as liberalisation of routes. Of the 48.4 million passengers that we crossed last year, almost 9.6 million passengers transferred at the airport. You can imagine. There is huge potential. Our nonaero income will increase.

How far is Delhi from becoming a hub? If you look at 2006, our traffic was only 0.5 per cent or 1 per cent. Today, we are almost 20 per cent. How could it happen? Generally, to make a hub, you need two things. One is connectivity, second is infrastructure facility to transfer smoothly. For a transit airport, what you want is a good facility to transit. Second you need — because of the time you are spending in the airport — you need a good environment, you need something to buy so there has to be shopping and eating facilities, you want to sleep, you want to play... What we did was we put a hotel. We put up the first transit hotel in an airport. We have 48 rooms in the international section and 52 rooms in domestic. We also put eight sleeping pods. We also put food courts and shops. From the passenger’s point of view, it is comfortable. The passenger is confident that his baggage is directly transferred backto-back. The baggage is not an issue for him because of our sophisticated baggage handling system. So, the passenger feels comfortable when he passes through Delhi airport. Second is connectivity. The passenger can ask: why should I come through Delhi? But, if you look at the last three-four years, we are working on connectivity. You have seen today long-haul flights are coming. There are flights to San Francisco... London has six flights now. There are Sydney flights. So, for any hub you need good connectivity. And the important thing is, you need a strong carrier. Today, Air India is the only carrier and to some extent Jet, are the only two carriers doing long-haul. In addition, a

CRUISING HEIGHTS June 2016

COVER STORY COVER STORY Continued from page 33

CATEGORY World Rank (ACI-Asq)

2006

2016

101

Airport Capacity (Million passengers per annum)

Annual Passenger Footfall (Millions)

16.2

48.4

Average Aircraft Movement/Day

414

943

Average Passengers/Day

44,500

1,32,600

Highest Aircraft Movement/eek HourP

Transit Passenger (million passengers per annum)

0.6

8.95

Cargo'000 MT per annum

383

726

On Time Departure

42%

82%

Number of Destinations

124

Number of Airlines

ENVIRONMENT Carbon Footprint (kg per pax)

2010

2016

4.76

2.32

Water Consumption (liters per pax)

Renewable Energy - Solar Power (MW)

7.82

Economic Impact (as per Social Impact Study of Delhi Airport by the National Council of Ap- 2010 plied Economic Research study)

2020

Contribution to Delhi State GDP

13.50%

22.20%

Contribution to India's GDP

0.45%

0.70%

Contribution to Employment (% of total Delhi's Employment)

15,78,000(25.9%) 0%

Beard, Co-designer at Brintons’ Pune unit described as a bird’s eye view of the city centre. The designers researched a variety of cultural influences and colours that were synonymous with India and used them to form a general design theme that could be applied — after suitable modifications — across all of the spaces. That was the kind of detailing that went for the Terminal. However, it is in Phase 3 that the airport attained its reputation as one that means business. After T3 was commissioned, Rao’s teams in the various departments

have been pursuing Operational Excellence. That has enhanced the operational efficiency of the airport and ushered in the development of the cargo business. With two cargo operators and top-of-the-line cargo facilities, the past decade has seen volumes doubling. An integral part of Phase 3 has seen innovation and technology contributing to make the airport a passenger-friendly airport. As I Prabhakara Rao pointed out, most of the innovation models are home-grown ones. GMR teams did many things on their own without any help from foreign sources.

CRUISING HEIGHTS June 2016

“It was our ‘Made in India’ effort,” said Rao, and came at a time when there wasn’t any stress on indigenous manufacturing. The Self Service Initiatives, for example, were all engineered in-house. This includes the Common User Self-Service (CUSS) kiosks for faster passenger movement through Check-in process, Self-Bag Drop and Document Exchanges. These are undergoing trial with IndiGo and will start soon. Rao is especially proud of the baggage handling system in the airport. Lost or mishandled baggage are a major issue at airports

•

and from the very beginning, it had been decided that a foolproof system had to be created that would make fliers – both departing and arriving – happy. Before T3 was commissioned, DIAL had engaged Munich Airport International (MUC), the experts in Operational Readiness and Airport Transfer (ORAT) to oversee the baggage handling. Anyone who visited the T3 those days only saw the ORAT in full swing with queues upon queues of bags ready for scanning and dispatch. Dry runs were carried out for over three months! Today, the airport handles 12,800 bags per hour within sight of 250 cameras keeping close watch. A smart airport in the making, Delhi banks on innovation. In fact, innovation ensures a sustained focus on core airport operations that in turn contributes to maintaining the benchmark of being the Best Airport in the world on passenger services. The adoption of Innovative Technologies has defined the manner in which service delivery is carried out at the airport. This philosophy was built around the core concept of providing seamless world-class passenger conveniences. And there is no pause; continuous investment in technology initiatives is helping make the airport more friendly and efficient. Among these are: • Airport Operations and Control

Centre (AOCC): A state-of-the-art facility to perform the Airport Operations from a remote and secluded facility, with a huge 4m x 7m Video Wall to collaborate common tasks amongst operators; Airport — Collaborative Decision Making (A-CDM): It involves all relevant stakeholders including the airport operator, airlines, ground handlers and ATC collaborating and sharing data to increase the overall airport efficiency. The concept focuses on improving air traffic flow and capacity management at airports by reducing delays, improving predictability of events and optimising the utilisation of resources; and, Flap Gates: Introduced to regulate the passenger movement to Boarding Gate

Area in Terminal 1D. Keeping in line with technological developments, the airport has also launched mobile applications for passengers (flyDEL) and cargo partners (DIAL Cargo). flyDEL provides real time airport and flight information to the users, including information on airport facilities and offers. DIAL’s Cargo App enables users to transact complete business functionalities including tracking Consignments, paying Terminal Charges, issuing Delivery and Carting Orders and many such items in a paperless manner. All this has contributed to boosting air traffic. In fact, in the past 10 years, the airport has recorded significant growth in passenger and cargo throughput. From 16.23 mn (Domestic: 10.47 mn and International: 5.76 mn) in 2005-6, the figure has leaped to 48.43 mn (Domestic: 34.28 mn and International: 14.15 mn) in 2015-16. It is the same with cargo. Over the years, the number of destinations – both domestic and international – have increased: from 98 in 2006 to 120 today. Some of the domestic routes introduced over the past 10 years include Cochin, Dehradun, Gwalior, Aurangabad, Kullu, Durgapur, Trivandrum, Vijayawada and Vishakhapatnam. As for overseas connectivity, the important international routes

CRUISING HEIGHTS June 2016

that have been added from Delhi include Birmingham, Moscow, Newark, Rome, New York, Melbourne, Milan, San Francisco and Sydney among others. The airport has also had a social impact. A study done by the National Council of Applied Economic Research (NCAER) has found that Delhi Airport’s operation contributes to more than 15,78,000 jobs, with 0.34 per cent contribution to national employment and 25.90 per cent to Delhi's total employment. In addition, employment benefits, especially from tourism and investments have taken place and this has been shared with other regions and states. A great airport has to move on with the times and adapt itself to the growing number of fliers, the increasing volumes of cargo and still go on providing the best in class services. I P Rao pointed out that while the Delhi Airport is well positioned to cater to the growth expected in the aviation sector, it is preparing itself. In 2015, DIAL took a fresh look at the Master Plan it had drawn up in 2006 for the development of the airport. This was primarily done because of, what GMR described as the changes in profile – fliers, aircraft types, etc – and distribution of demand. Rao and his team had only envisaged a 20 per cent growth for lowcost carriers. Today, that growth has been hovering at 70 per cent. Even the aircraft have changed. Who would have imagined that A380s would start operations in Delhi in 2006? Today, the airport handles quite a few flights of the jumbo carrier. As per the changed market conditions, the revised Master Plan has proposed major infrastructure and capacity enhancement projects. These include the development and commissioning of the fourth runway along with other airside infrastructure developments; the expansion of Terminal 1; the development and commissioning of Terminal 4; and the enhancement of road access from T1 to T3/T4 to meet the growing demand of passenger traffic and cargo movements. Ten years and millions of fliers later, one generally tends to slow down. But not I Prabhakara Rao. The childlike enthusiasm that he had in 2006 continues to this day. His working hours – and that is virtually 24/7 – are spent in bringing everyone together to deliver their best. As GMR patriarch G M Rao had told Cruising Heights way back in 2010: “We had a vision and everyone helped implement it.”

ENGINES

R-R gets the TEN ready

he first Rolls-Royce flight-compliant Trent 1000 TEN engine has been delivered to Boeing in Seattle. The TEN (Thrust, Efficiency and New Technology) incorporates a version of the advanced compressor developed by Rolls for the Trent XWB-84 used on the Airbus A350 as well as other technologies perfected on the engine-maker’s Advance 3 demonstrator. The engine is designed to improve fuel burn by 2 per cent – a critical factor in the long-term battle with rival General Electric whose GEnx1B, is the alternate engine for the 787. Since the start of the TEN, which was launched in 2012, Rolls have clinched 60 per cent of the campaigns in the last six years. But there is a huge agenda to fulfill with having to get the development for the -8 and the -9 ready before it debuts on the 787-10. However, Rolls knows it has its

Rolls-Royce despatches first set of engines

s part of its largest ever orders, Rolls-Royce has dispatched the first shipset of four engines for Emirates. The Trent 900 engines left the Rolls-Royce site at Derby, UK, where they were assembled, for Airbus in Toulouse, France, where they would be fitted to an A380 aircraft. Rolls-Royce is providing Trent 900 engines and TotalCare service for 50 Emirates A380s, the first of which would enter service later this year. Eric Schulz, Rolls-Royce, President, Civil Aerospace, said: “This is an important milestone in delivering the largest order in our history for a highly-respected customer. We look forward to celebrate Emirates’ first Rolls-Royce powered A380 flight and ensuring the entire fleet has a smooth entry into service.” The order from Emirates was announced last year and confirmed the Trent 900 as the engine of choice on the four-engine A380. It has now secured more than 50 per cent market share on the aircraft, in addition to being selected by the majority of A380 customers. Emirates recently confirmed that it would operate an additional two A380s that would be powered by the same engine with TotalCare service support. The launch of the Trent 900 received UK Government support and components for the Trent 900 are manufactured by Rolls-Royce facilities across the UK including Sunderland, Bristol, Ansty, Barnoldswick and Inchinnan, Scotland. The Trent 900 is assembled in both Derby and Singapore. CRUISING HEIGHTS June 2016

work cut out. Not only must it prove the enhanced performance of the TEN, but it must also complete development in time for the engine to be offered first on the -8 and -9 versions in the run-up to the debut of the 787-10. Rolls originally hoped to certify the TEN before the end of 2015 and still enter service in late 2016. But the stator issues have pushed back US FAA approval to around the third quarter of this year. Though facing a compressed test schedule, Rolls is confident, based on recent progress, that the revised timing still enables the engine to enter service in 2017, derisking its debut on the 787-10 the following year. Working software is pivotal because the TEN incorporates a new electronic engine control and processor to control the functionality of novel systems in the engine. The software and its related systems are performing well in Tucson, Arizona where the TEN is being tested on the flying test bed. The engine flew for the first time on the companyâ&#x20AC;&#x2122;s modified 747-200 in Arizona on March 22; since then, the engine has amassed more than 100 flight hours over 24 flights. The compliance engine that was recently shipped to Seattle will be used to verify the accuracy of measurements for tooling and ground-handling equipment. It will then be transported to Tucson for installation on the flying testbed. Boeing pilots will operate the production-standard engine. Production engines will be delivered for the 787-8 first, followed by the -9. As Boeing continues to increase the 787-production rate, Rolls-Royce has to migrate from the present Trent 1000 Package C version to the TEN. At the moment, R-R is delivering over 100 of these engines will shift completely to the TEN in 2017.

Meanwhile, the company is preparing to deliver the first of two Trent XWB-97 engines that will power the A350-1000 on its maiden flight later this year to manufacturer Airbus. A higher thrust derivative of the XWB-84 that powers the smaller A350900 has been successfully running for over 24 months since the launch of the aircraft. Since entering service in January 2015, 21 aircraft have joined the operational fleet with five operators. Some 50 engines support the fleet and around 140 are now entering build or have been delivered. With 803 firm aircraft sales, 181 of which are for the A350-1000, the XWB is the largest single Trent programme. Rolls-Royce is also preparing to deliver a second XWB-97 flight-test engine. That will be going onto the A380 in Toulouse for the hot weather campaign. This will be similar to the evolution of the XWB-84 that three flying testbed engines progressively introduced better standards as the engine was enhanced. A similar approach is beCRUISING HEIGHTS June 2016

ing taken with the XWB-97, which has behaved flawlessly in flight tests. Rolls has accumulated 139 hours on the first flight XWB-97 over 38 sorties on the A380. The company is now past the halfway mark in the certification campaign. Tests simulate conditions far more extreme than would ever have been experienced in commercial service in order to validate the reliability and durability of the hardware. Other high-risk tests completed include medium-bird ingestion, fan blade off, and icing. All are now being prepared for presentation to the European Aviation Safety Agency. The engine-maker has also revealed new details of the Enhanced Performance (EP) upgraded version of the XWB-84 for which Singapore Airlines is the launch customer. First announced at this yearâ&#x20AC;&#x2122;s Singapore Airshow the package is expected to yield a one per cent improvement in fuel burn, and enter testing in the first half of 2018.

ENGINES

Preparing the GE9X for testing G

E and Boeing engineers are working overtime to prepare the flightbed testing of the world’s largest engine — the GE9X engine for the 777X on GE’s 747-400 flying testbed in 2017. In fact, they have to make sure that an aircraft not designed for such a large engine is able to safely carry it on its wing and go through a full flight test programme. Ironically, the bigger engine has lesser thrust: 105,000 lb. thrust, or around 10,000 lb. less than the GE90-115B, so far the world’s largest engine. But the higher bypass ratios means the GE9X is physically much larger. With a bypass ratio of 10:1 and fan diameter of 134 in., the overall size of the GE9X nacelle is 178 in. The Boeing team is working in tandem with the GE team to prepare for flight tests in 2017. In fact the preparatory work is believed to have commenced some years back. The engine will fit well under the -400 although the bottom of the nacelle will be only around 1.5 ft. above the ground. The internal wing structure was strengthened with the GE9X in mind when the 747-400 was modified for the test role. According to Aviation Week: “To help the flight crew precisely control the engine

as well as place the aircraft in exactly the right condition for each test, the -400 flight deck is also modified with special displays and switches. A flip-down display for each pilot shows engine test parameters, live exterior camera images and other key data, and when not in use it stows away beneath the glareshield. The screens can also be controlled by hand-held tablets used by the test crew. The display shows imagery from a suite of surveillance video cameras.” One “can pull up video to see when being pushed and make sure no one is in harm’s way, or look at the engine itself either from over the wing or from an ‘R2D2’ unit under the belly”. One “can steer it and zoom in … to look at something on the engine”.

Automating for the rush I

t’s a $10-billion project and Pratt & Whitney is threefourths of the way there. The power plant giant is investing in state-of-the-art automated manufacturing technology to be on top of the simultaneous ramp-ups across its commercial and military engine lines. But that is not all. Take a look at the numbers: • 80 per cent of the parts for each new PW 1000G GTF-family engine comes from an external supplier who will end up spending around $3-4 billion to align with the P&W workflow. And this is just one engine. • For the ongoing ramp-up of the F 135 or for the F-35 Joint Strike Fighter, Pratt is investing in manufacturing initiatives such as “intelligent” or automated production cells, isothermal forging and additive manufacturing to produce parts for the new engines. • The company is also close to completing acceptance testing of a linear friction-welding machine in the CSMC. The machine, one of the largest of its type in the world, more than doubles Pratt’s capacity to do friction welding, and will be used initially to attach first-stage low pressure blades onto the hub of the F135. The device will later be used for components of the GTF family.

As preparations for flight testing get underway, ground runs of the initial engine have already begun. Fired up into life for the first time three days ahead of schedule on March 25 at the company’s Peebles, Ohio, facility, the engine has powered up to its full 105,000-lb. rated thrust level and is believed to be “running beautifully”. With lessons of past programmes in mind, such as the troublesome original GE90 development effort, GE is trying something new by running the first GE9X much earlier in the program than normal for a new centerline engine. The first engine is “near the final standard” and it paves the way for a stable configuration heading into certification. GE is also working to make sure that the engine works in the toughest and harshest of environments. Future work includes deliberate ingestion of dust as part of endurance and demonstration tests of the parts made from ceramic matrix composites (CMC). A dust rig in front of the engine will help simulate desert operations and barrels of different types of dust have been collected from all parts of the world. The flight-test engine, one of eight GE9X units planned for the certification programme, also will be ground tested prior to flight to validate the control logic. Engine certification is planned for the fourth quarter of 2018.

Aequs gets A320neo parts contract

rench aircraft giant Airbus has awarded a contract to Karnataka-based aerospace component maker Aequs Aerospace, to supply over 100,000 titanium machined parts for the A320neo (new engine option) programme. Under the contract, the titanium machined parts would be delivered to the Airbus plant in Toulouse (France), where they would be assembled onto the pylon structure, and used to mount engines on the aircraft wing. This supply contract positions Aequs for substantial growth as a significant Tier-1 supplier to Airbus. “This award (of contract) represents a significant step for us as a supplier to Airbus. We have a long-standing relationship with Airbus and have produced detail machined parts for its single aisle, long-range,

CRUISING HEIGHTS June 2016

and large aircraft since 2009, including wing leading edge subassemblies for its A380,” Aequs Chairman and Chief Executive Officer Aravind Melligeri said in a release. As part of the order, Aequs would perform the work at its state-of-the-art 100,000 sq ft (approxinately 9,300 sq mt) aerospace machining facility at the Special Economic Zone in Belagavi. Inaugurated last year by Defence Minister Manohar Parrikar, Belagavi is the largest facility of its kind in India and has been purpose-built to manufacture aerospace machined components for Airbus. “This contract for specialised titanium components underpins our commitment to expand our aerospace supplier partnerships in consonance with Make in India,

Honeywell develops voice technology for maintenance H oneywell Aerospace, the largest manufacturer of aircraft engines and avionics, has developed a voice application to support maintenance operations. It allows engineers and technicians to remain mobile while giving instructions and collecting data. The Vocollect Voice Maintenance and Inspection (M and I) Solution supports engine product line repair and overhaul process by allowing mobile workers a mobile way to give instructions and collect data for induction engines. The technology cuts down on the outdated back and forth data entry and look up time on a laptop, handheld device or paper forms and lets maintenance personnel speak commands and verbally input data findings directly into the system via a headset with a microphone. By using voice recognition, they are able to continue their work uninterrupted, greatly increasing the efficiency of operations. Honeywell’s Vocollect Voice Maintenance & Inspection Solution can also support component MRO, line maintenance and heavy maintenance for the aviation industry. Watch the video to understand how the maintainer uses Voice Inspection Solution to easily repair the engine. Lufthansa Technik’s auxiliary power unit (APU) maintenance division began

adopting the system last year, after Honeywell developed an aero maintenance version of the software already in use in warehouses and stores across the United States. Rather than being directed to pick and pack from a logistics system, Lufthansa technicians were directed by voice through a checklist of steps for maintenance and inspection, from receipt of the APU to dispatch after maintenance. “To ensure we met the necessary standards of accuracy, the previous procedure

generally required two technicians who shared the process of checking, diagnosis and inputting data into our system,” explained Ole Gosau, Head of Lufthansa Technik APU Services. “A key advantage of Vocollect voice technology has been that it has freed our technicians from the time-consuming and burdensome task of writing and maintaining the required documentation. Previously we were looking at that taking up around 50 per cent of their working day.”

AFI KLM JV with Safran A

which is at the heart of our strategy. We are proud to have Aequs as one of Airbus’ key Indian Tier-1 suppliers,” said Srinivasan Dwarakanath, President of Airbus Division in India. Budget carrier Indigo, which has placed an order with Airbus for 430 A320neo, is presently the only operator of this aircraft, which the Airbus claims

is 15-20 per cent more fuel efficient than the existing version of A320. Besides, national airline Air India has also signed an agreement with Kuwait-based ALAFCO for leasing of 14 A320neo aircraft while Tata-SIA joint venture airline Vistara also planned to induct such planes in its fleet going forward.

CRUISING HEIGHTS June 2016

ir France Industries KLM Engineering & Maintenance (AFI KLM E&M) recently confirmed the formation of a new joint venture (JV) with Safran’s aircraft engines business for aircraft compressor blade repair services. According to MRO Network, Air France KLM EVP of Engineering and Maintenance Franck Terner said that the JV's creation was part of a strategy to insource compressor blade repairs back into the new France-based repair shop. Up to now, the MRO had outsourced the work to subcontractors in Singapore. As part of a €20m ($22.6m) investment, the 15,000 sq mt facility would be located in La Porte du Hainaut, around 40km southeast of Lille and will focus on airfoils for established engine types including CFM56 engine variants, the GE90 and the GP7200. It is expected to reach full production capacity by 2020. Operations are scheduled to begin in Q4 2017. “It’ll be a very big flow of parts benefitting to the engines repaired in our existing shops,” he said.

ENGINES

FAA nod for PW1 400G-JM for MC-21

he Federal Aviation Administration certified Pratt & Whitney’s PurePower PW1400G-JM geared-turbofan engine to power the Irkut MC-21 jet, meaning three variants of the PurePower GTF have been cleared by the civil aviation regulatory agency. The Pratt & Whitney geared turbofan engine design involves a gear system separating the engine fan from the low-pressure compressor and turbine, so that each module operates at optimal speed, reducing fuel consumption, emissions, and engine noise. “This milestone is another huge step forward for the PurePower engine programme, which brings unmatched operational benefits including doubledigit reductions in noise, emissions and fuel burn, making for greener skies,” said Greg Gernhardt, President, Commercial Engines Programmes, Pratt & Whitney. “The technology behind the GTF engine is a game-changing force in the aviation industry for all the right reasons and we are excited that the PW1400G-JM engine is moving one step closer to powering Irkut’s MC-21 aircraft and providing the renowned benefits for which this engine is so highly regarded.” “We would like to congratulate Pratt & Whitney on the certification approval of its PurePower engine,” said Oleg Demchenko, President, Irkut Corporation. “The engine increases the competitiveness of our aircraft since it offers tangible cost savings to our airline customers due to the enhanced fuel burn efficiency while simultaneously benefitting the environment.”

CFM LEAP-1B achieves joint EASA/FAA certification

S Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) have awarded type certificates to CFM International’s LEAP-1B engine, paving the way for entry into commercial service in 2017. The LEAP1B engine is the exclusive powerplant for the Boeing 737 MAX. CFM is unique in that it is the only engine manufacturer to gain dual original certification from both agencies, rather one lead agency issuing a type certification and the second agency validating that certification. This reflects CFM’s 50/50 design and production structure between parent companies GE and Safran, which has been so successful for more than 40 years. “This is another great milestone for the LEAP programme and the hard-working team behind it,” said Allen Paxson, Executive Vice President for CFM. “Everyone, from the project and engineering teams to manufacturing and our suppliers, has done an incredible job of keeping this programme on schedule and building an engine that is delivering everything that we have promised.” “The LEAP-1B engine flew for the first time on the Boeing 737 MAX on January 29,” CFM International said in a statement. “Since then, two more aircraft have been added to the test programme in March and,

Vietjet’s bounty for engine makers V ietJet’s recent order for 100 Boeing 737 MAX 200 aircraft has overshadowed the two large purchase agreements the airline signed for engines to power the aircraft on order. The first among the two engine deals was the order for 215 CFM International LEAP-1Bs to the B737 MAX 200s, which will be delivered from 2019 to 2023. The LEAP-1B order included 200 installed engines on the aircraft as well as 15 spare engines. CFM valued the engine order at $3 billion at list price. That

means, according to industry sources, CFM’s 2016 list price for the LEAP-1B is just under $14 million per engine. Incidentally, the 737s are only available with CFM International engines (the CFM56-3 in the case of the 737-300/400/500 and the CFM56-7B in the case of the 737600/700/800/900). Vietjet had been using A320s and A321s. All the A320 family planes – incidentally, the carrier has ordered two

CRUISING HEIGHTS June 2016

to date, these three airplanes have logged a combined total of more than 100 test flights, including completing high altitude flight testing in La Paz, Bolivia, recently.” “We couldn’t be happier with the way this engine is performing,” said Francois Bastin, Executive Vice President of CFM International. “Boeing is racking up an impressive number of flight hours with the test aircraft and initial indications are that engine performance is meeting expectations.” The LEAP-1B engine features some of the industry’s most advanced technologies, including 3-D woven carbon fiber composite fan blades and fan case; a unique debris rejection system; fourth generation three dimensional aerodynamic designs; the Twin-Annular, Pre-Swirl (TAPS) combustor featuring additively manufactured fuel nozzles; ceramics matrix composite shrouds in the high-pressure turbine; and titanium aluminide (Ti-Al) blades in the low-pressure turbine. The engine will provide operators with double-digit improvements in fuel consumption and CO2 emissions compared to today’s best CFM engine, along with dramatic reductions in engine noise and exhaust gaseous emissions. All this technology brings with it CFM’s legendary reliability and low maintenance costs. A320s and 19 A321s — are powered by CFM56-5B engines. So, with the order of 100 Boeing 737 MAXs, the carrier will have at least 150 CFM-powered aircraft in service. However, Vietjet has decided to move away from CFM and recently signed an order for Pratt & Whitney PW1100G-JM Geared Turbofan (GTF) engines to power all 63 A320neofamily aircraft it has ordered to date. In announcing the deal Pratt & Whitney did not mention how many spare engines Vietjet had decided to order.

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INTERNATIONAL CONFERENCE CUM AWARDS

CIVIL AVIATION & TOURISM National Civil Aviation Policy 2016 Thursday, 16th June, 2016 New Delhi

Shri Rajiv Nayan Choubey, IAS

Shri Ashok Gajapathi Raju Pusapati

Dr. Mahesh Sharma

Shri Sunil Kanoria

Secretary, Ministry of Civil Aviation, Government of India

Hon’ble Union Minister of Civil Aviation, Government of India

Hon’ble Minister of State, Ministry of Civil Aviation, Ministry of Tourism (I/C), Government of India

President ASSOCHAM

Hon’ble Union Minister for Civil Aviation, Shri Ashok Gajapathi Raju Pusapati, Shri K Narayana Rao, Chairman, ASSOCHAM National Council on Civil Aviation along with the ASSOCHAM National Awardees 2015 (27th August, 2015)

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BIZJETS ON A SONG Small and medium jets segment will drive the demand

FALCON 2000LXS RECORD Falcon 2000LXS 1st bizjet to fly an Instrument Approach Procedure

SIX GET NOD Six get approval for launching non-scheduled air services

A look at the business of general aviation

Affordable business jet flights with EMIs For jet-setting Indians looking beyond the business class but not quite ready to own their own aircraft, Jetsmart is chartering a new path in the skies. The Bengaluru-based private air travel venture will give them the convenience and pleasure of private jet travel at a fraction of the cost, and also the facility to pay in EMIs, reports Nidhi Sharma Though this idea or model is not common to the Indian business aviation market, what makes it unique is the ease for the end user who can harness state-of-the-art technology. The platform enables individuals to use their credit cards to book charters or individual seats on a wide range of business aircraft types. More, JetSmart allows passengers to charter flights or even a single seat on a business jet and pay in EMIs. The venture will give them the pleasure of private jet travel at a fraction of the cost. Further, Jetsmart says what is going to be completely new for the business aviation market is that the company will soon provide a mobile platform through an app for customers to book a private charter, a facility not offered presently in India. Jetsmart has begun services with domestic flights. A single seat on one of its charter

etsmart, the Bengaluru-based, private air travel venture wants to move in where others have yet to tread. Erfan Haque, CEO of Jetsmart.in, explained his business strategy: “Many airports in India — especially Mumbai — have space constraints because of which business jets cannot remain parked there. As a result, people flying in business jets to Mumbai have to send the planes either back to their origin in India or to Pune for parking so that it can come later in the day to pick them up. These are called empty leg flights. Almost 30 per cent of all flights by business jets in India are empty leg. We will offer these empty leg flights for charter on our portal. We will be offering both the complete jet and individual seats on it. Those empty flights or empty seats will be put to better use by Jetsmart: either sold as one flight or on a per seat basis — both made available at lesser costs.

Those who want to enjoy the pleasure of private jet travel at a fraction of the cost when compared to owning a personal jet, can simply log on to the online portal Jetsmart.in to book charter flights. With our initiative, we aim to enhance people’s access by air to the underserved towns and cities,” Haque said. For a steady supply of inventory, Haque pointed out that “India has 124 non-schedule operators with 246 flying machines with them: 142 planes and 104 helicopters. We are tying up with them to allow us to charter their planes when not in use. This way, they can also either reduce their costs or make some money,” Haque said. The company saw an opportunity in the spare capacity available with the 100- plus government approved private air charter operators who hardly ever optimise the hours they can productively utilise their aircraft. CRUISING HEIGHTS June 2016

flights can cost upwards of `60,000. To provide this service, the company has tied up with 20-odd non-schedule operators so far that will offer connectivity to over 1,200 cities within the country, including flights between Vellore and Mumbai, Kozhikode and Chennai and Surat and Jaipur. “We see India’s aviation potential standing at the crossroads, much as the telecom/ mobile industry did in the late 1990s and the television media industry, a decade before that. India is on the cusp of becoming

an aviation super power and we intend to be there on the stage when it happens,” the CEO further said. The initiative made sound business sense; hence an investment of $1 million from Travel Capitalist Ventures and No Borders Investments. Said Abrar Ahmad, Partner, Travel Capitalist Ventures, “Travel Capitalist Ventures and No Borders Investments is proud to invest in Jetsmart India in their mission to be the easiest way to book the entire private charter experience within India. Jetsmart is already a leader in an untapped lucrative market with a seasoned management team, leading technology platform and a strong, unique value proposition which our capital, strategic advice and guidance will rapidly accelerate. The Jetsmart offering allows corporates to service the needs of their key executives, provide discreet offerings to celebrities and High Net Worth (HNW) individuals to airports closer than legacy offerings while saving valuable time and money.” Ahmad went on to explain that he had been “looking at the jet charter space (in India) for some time now. The idea is to get as many private aircraft into the system as possible. Celebrities, politicians and other users not only require the aircraft but also a level of service we strive to provide”. Although Jetsmart was unwilling to reveal which private aircraft owners were signing up, it may be mentioned that Reliance, Tatas, Punj Lloyd, DLF, GMR and Jindals are among those that have their own CRUISING HEIGHTS June 2016

planes. A senior Jetsmart official provided an interesting dimension to the initiative: “We will market our product aggressively around Karvachauth as people can take their wife for a flight and land at the origin after performing the festivities and having a meal onboard the business jet. We want to change the feeling that business jets are beyond reach. A Delhi-Mumbai business class seat can cost up to `40,000 and the business class feel of them is only for the time you fly. Spend only `20,000 more and fly the business jet by booking a seat that will help you skip all queues at the airport.” As for future growth and expansion of the service in the country, Haque explained that the market remained largely underexplored. In a country with more than 450 airports, fewer than 30 per cent were operational. Only 16 per cent of Indian airports were served by scheduled airlines and an astonishing 70 per cent of all air traffic in the country was concentrated in the top 7 metro airports. “We see ourselves coming together with our other market players such as JetSetGo, tying in the spare capacity with the increasingly strong demand for regular and remote area connectivity from business houses, sports entities, celebrities and the political class, engineered a revolutionary approach in bringing this unique supply and demand together. We see other service providers as our partners, not competitors, and the soundness of our vision is getting support from all fronts.”

BUSINESS AVIATION

Falcon 2000LXS creates history D

assault’s Falcon 2000LXS has become the first business jet to fly an Instrument Approach Procedure (IAP) with a published LPV minima of 200 feet, using Europe’s EGNOS LPV200 service. The flight, at Paris’ Charles de Gaulle Airport, was performed as part of initial European LPV200 trials, which also involved Airbus 350 and ATR-700 commercial aircraft. LPV (Localizer Performance with Vertical Guidance) permits aircraft guided approaches operationally equivalent to ILS Cat 1 without the need for ground-based navigation aid infrastructure. The service relies on the availability of GPS and Space Based Augmentation System (SBAS) capabilities like EGNOS (European Geostationary Navigation Overlay Service) and the US’s Wide Area Augmentation System (WAAS). France was the first European country to publish approach procedures permitting EGNOS LPV200 service with a 200 feet minima, the same level of performance as permitted by WAAS and ILS Cat 1. The EGNOS LPV service was intro-

duced in 2011 but only to a decision height not lower than 250 ft. Dassault’s Falcon 900LX was at that time the first aircraft to fly an EGNOS LPV250 approach (performed in Pau, France early the same year). LPV approaches make it possible to land at facilities not equipped with expensive instrument landing systems, which includes many small regional and local airports. Lowering the decision height from 250 feet to 200 feet provides a substantial operational benefit in poor weather and low visibility conditions. “The accuracy and stability of LPV guidance is really amazing, much better than with ILS,” said Jean-Louis Dumas, test pilot at Dassault, who was at the controls alongside operational pilot Olivier Perriaud during the EGNOS LPV200 trials. “Lowering the minima to 200 feet will be a great boon for European business aviation operations.” All in-production Falcon Jets are equipped with Dassault’s second generation EASy II avionics suite, which is designed to support LPV200 and other new navigation features.

Global general aviation deliveries dip in Q1 B

usiness jet deliveries have not displayed a very positive outlook according to new data from the US-based General Aviation Manufacturers Association (GAMA). The number of worldwide deliveries of general aviation products fell 3.7 per cent to 422 in the first quarter, compared to the same period in 2015. All industry segments declined, with turboprops down 6.8 per cent, business jets down 4.7 per cent and piston aircraft down one per cent. The total value of deliveries was down 9.5 per cent to $4 billion year over year. More than a quarter of all combined deliveries came from Wichita-based Textron Aviation, which delivered 110 aircraft in the first quarter. That was down from 122 in the first quarter of 2015, due primarily to a decrease in deliveries of its single-engine Cessna Model 172 Skyhawk. Textron Aviation was an outlier, however, on the higher-margin end of the market where its business jet total increased from 33 to 34 and deliveries of its Beechcraft King Air turboprops increased from 25 to 26. Meanwhile, Bombardier Aerospace recently announced that weak Learjet and fewer largecabin deliveries caused business jet shipments to skid 31 per cent in the first quarter of 2016.

CRUISING HEIGHTS June 2016

‘Bizav is safer than commercial carriers’

specific discussion on aviation’s most unsettling accident cause: pilot murder-suicide, was carried by Thomas Anthony, director of USC’s aviation safety and security programme, at the recently-held Flight Safety Foundation/ NBAA Business Aviation Safety Seminar in Austin, Texas. He made a presentation on “Human Factors in Extremis: The Rogue Pilot Phenomenon.” “The anonymity in today’s large carriers where you don’t fly with the same people” puts airlines at more risk for rogue pilots than business aviation, where “we fly with the same people, which allows us to keep an eye on people in our organisation,” Anthony said. Should Malaysia Airlines MH370 join the identified cases of last year’s German Wings Flight 9525 and 2013’s Air Mozambique’s LAM470, “Then you would have three (pilot murder-suicide) primary causes of fatal commercial accidents in three successive years,” said Anthony. “I think that’s significant… Murder-suicide is premeditated; it’s not out of the blue.”

Global bizjet market on a song N

orth America is expected to lead the market for new jets followed by Europe and Africa over the next decade, according to a study by Research and Markets. The study also shows that the small and medium jets segment will drive the demand for new business jets and that the business jets sector was facing turbulence due to economic difficulties

First nod for six

ignalling the rising demand for private charters in the country, six companies have received preliminary approval for launching non-scheduled air services in the first four months of 2016. This is an improvement from 2015, when in the entire year, only ten entities received the No-Objection Certificate (NOC) from the civil aviation ministry. Latest data from the Civil Aviation Ministry shows that six companies received initial NOCs till early April this year in the ‘Non Scheduled Air Transport Services’ category. The firms are: LMCS Infra Holdings, U Y Aviation, River Engineering, Chipsan Aviation, AVV Skyshuttle and TAAL Enterprises. Of them, LMCS, U Y Aviation and River Engineering got the approval in February in Europe, China and Brazil. Further, in the next decade, the business aviation industry in India will grow three times and emerge as the third largest aviation market by 2020. And in China, although the corruption crackdown and the new government’s policies have slowed the economic pace, outlook was still bright. The greater China area was expected to take delivery of 2,420 business jets in the study period. The global business jet market demand which was nearly halved during the financial crisis has now improved and large players were launching new models in the wake of increasing demand from Middle East, Asia and North America. According to the study, the global business jets market was worth $20.9 billion in 2013 and was projected to grow at a CAGR of 6.86 per cent to $33.8 billion by the end of 2020. It was forecast that the global demand for new business jets would reach 9,100 by 2025.

while Chipsan and AVV Skyshuttle received the nod in March. TAAL Enterprises received the NOC in April. From January 2014 to April this year, as many as 34 entities have been given NOCs under the ‘Non Scheduled Air Transport Services’ segment. During this period, four companies -- including Tata SIA Airlines -- got the initial nod for starting ‘Scheduled Air Transport Passenger Services’ while four others received the approval in the ‘Scheduled Air Transport Regional Services’ category, as per the data. According to the data, a total of 43 NOCs were issued in January 2014-April 2016 period across the three segments. However, just six entities have got the AOPs.

April brought back bizjet flights in Europe A

pril business aviation departures in Europe grew 0.1 per cent year-over-year with the European business aircraft market reporting a gain of just 0.1 per cent in that month. According to data released recently by independent Business Aviation specialCRUISING HEIGHTS June 2016

ists with expertise in business intelligence, WingX Advance, 63,602 departures were recorded in the region. The overall improvement stemmed from 2 per cent growth in business jet activity; business turboprop and piston activity dragged down the results, declining between 2 and 3 per cent. Year-todate, flying in the region trailed 2015 by 1.6 per cent. Western Europe recorded a growth of 1.6 per cent in April, with flight activity up in all markets except Switzerland. Germany and Spain were the strongest markets, WingX said. Several smaller markets also saw some growth in April, with flights from Norway up 8 per cent; Czech Republic, 10 per cent; and Belgium, 15 per cent. Flights from southern and eastern Europe fell 2 per cent, deteriorating on the 12-month trends. Arrivals from Russia into Europe fell by 11 per cent. This, however, was an improvement considering recent trends. Transatlantic flights were up 5 per cent, while Middle East connections climbed 2 per cent. Paris Le Bourget and Geneva, two of Europe’s busiest business aviation airports, saw slight year-over-year declines in April. The next busiest airports—London Luton, Farnborough and Nice—all recorded modest gains in activity. Of the 25 busiest European business airports tracked by WingX, Munich logged the largest growth, with activity soaring 25.4 per cent.

FOCUS ON ‘COPTERS P50

P51

BELL EXPANSION

SHOWCASE

Bell Helicopter’s Prague location opened a new paint facility and delivery centre

Airbus Helicopters exhibited its H135 at the recently held HeliRussia 2016

Brakes on ’copter deliveries

Honeywell Aerospace forecasts demand for 4,300 to 4,800 helicopters for civilian use over the next five years, roughly 400 aircraft lower than last year’s five-year forecast. The decrease is due to an environment of slower global economic growth and increased volatility in the oil and gas market

n the face of a slower global economic growth environment and increased volatility in oil and gas-related markets, the helicopter industry is reacting with a cautious outlook for near-term new purchases. This was claimed by Honeywell Aerospace in its recent 18th annual Turbine-Powered Civil Helicopter Purchase Outlook. Honeywell forecasts 4,300 to 4,800 civilian-use helicopters will be delivered from 2016 to 2020, roughly 400 helicopters lower than the 2015 five-year forecast. “The current global economic situation

is causing fleet managers to evaluate new helicopter purchases closely, and that's why we're seeing a more cautious five-year demand projection compared with previous years,” said Carey Smith, President, Defense and Space at Honeywell Aerospace. “Even in a slower growth environment, Honeywell is well-positioned to help operators keep current fleets lasting longer with aftermarket upgrades and repairs.” The survey showed that new purchaseplan rates were stable, but operators cited fewer total new model purchases over the five-year period, leading to a more cautious CRUISING HEIGHTS June 2016

near-term outlook. When considering a new purchase, operators’ results mirrored those from last year, with make and model choices for their new aircraft most strongly influenced by range, cabin size, performance, technology upgrades and brand experience. Also, helicopter fleet utilisation generally declined compared with last year. Although usage rates are expected to improve over the next 12 months, but at a reduced rate, as the gap between operators planning increases and those planning decreases has narrowed in every region. Demand continues to ebb and flow

with stronger results recorded for India and Brazil in the 2016 survey. In India and Brazil, new helicopter purchase-plan rates exceed the world average by a wide margin. Planned Chinese purchase rates slipped, reflecting near-term slower economic growth prospects. Notably, no Chinese-built models received specific purchase interest mentions in the survey; however, civil deliveries are occurring and are reflected in the Honeywell outlook. Latin America led all global regions in the rate of new aircraft purchase plans despite an economic slowdown in Brazil. In terms of projected regional demand for new helicopters, Latin America is now contributing the second highest demand among the regions tracked, trailing only North America. Latin American respondents currently favor light single-engine models for just under half their planned acquisitions, followed by light twin-engine models at about 35 percent and a balance of intermediate and medium twin-engine platforms for the remaining purchases. The Middle East and Africa region has the second-highest new purchase rate among the regions, with up to 30 per cent of respondent fleets slated for turnover with a new helicopter replacement or addition. More than 60 per cent of planned new helicopter purchases are intermediate and medium twin-engine models. Heavy multiengine models are underrepresented due to the absence of input from the large oil and gas operators in the region. North America purchase expectations fell 2 percentage points in this year's survey but still provide a strong base of demand for light single-engine and intermediate or medium twin-engine platforms. More than 60 percent of planned North America purchases were identified as light singleengine models, while just under a quarter of new purchases were slated as intermediate or medium twin-engine models. North American purchase plans are a significant component of the overall 2016 survey demand and help support global industry demand projections by virtue of the large fleet active in the region. For Europe, purchase plans decreased slightly with continued weakness in reported Russian buying plans. The sample of Russian operators responding in 2016 remains small, which continues to add some uncertainty to the overall European results. European purchase intentions currently tend to favor light twin-engine and light single-engine models in nearly equal shares this year. Experts claim that purchases must also be weighed against the prevailing economic conditions.

Forward step for Mumbai’s rooftop helipads M

umbai’s city planners, in an unexpected development, have proposed to allow helipads on rooftops of tall buildings. The revised Development Control regulations seek to allow a helipad on rooftops of buildings over 200 metres in height without any planning application or approval. The proposal also allows the helipad to project out by 1.2 metres from the building line. The Brihanmumbai Municipal Corporation recently cleared the proposal for constructing such structures atop tall buildings. The civic body that governs the city of Mumbai has said that all other permits and approvals will still be required, including those from the Director General of Civil Aviation, the Union Defence Ministry, the state government, fire regulations as well as sign-off from a registered structural engineer. The latter will have to issue a certificate confirming the helipad will not affect the structural integrity of the tower. A number of corporate honchos, including the Ambanis and Ruias of Essar, have already constructed rooftop helipads atop their multi-storeyed buildings. However, these facilities have not been allowed to function by various government authorities. Some hospitals in Mumbai are also pitching for permission to build rooftop helipads for operating air ambulance facilities. It may be mentioned that according to officials, the Union Ministry for Environment and Forests had on previous occasions refused proposals for rooftop helipads citing noise pollution.

AgustaWestland is now Leonardo Helicopters A gustaWestland parent Finmeccanica has officially been rebranded as Leonardo following a vote by shareholders. This development comes after AgustaWestland was temporarily rebranded as Finmeccanica Helicopters for many months as an interim identity. The helicopter division will now be known as Leonardo Helicopters, but its aircraft will retain the AW model designations. The name acknowledges the man widely credited with devising the first concept for the helicopter, 15th and 16th Century Italian artist and inventor Leonardo da Vinci. AgustaWestland has been using the name Leonardo for its online customer portal for some time. Towards 2015-end, Finmeccanica CEO Mauro Moretti hinted at a new name for the company that would be “recognisable, simple (and) very ItalCRUISING HEIGHTS June 2016

ian.” Moretti said Finmeccanica was looking for something to “reflect the history of our evolution in space and security,” while announcing the name change. He added that the company’s slogan would also change to “genius at your service”.

FOCUS ON ‘COPTERS

Bell woos APAC with 412EPI

ell Helicopter will showcase the capabilities of the Bell 412EPI through a series of customer demonstration flights in Asia Pacific spanning over five months. The company has said that it last demonstrated the Bell 412’s capability in 2013 in the region and since then had attracted a number of customers including the Philippine Department of National Defense and the Government of Uttar Pradesh in India. There are currently more than 150 Bell 412 variants operating throughout Asia Pacific across a range of mission segments including VIP, energy, and general utility – proving the operational versatility of the aircraft. “Customers around the globe rely on the Bell 412 to consistently perform in the toughest of environments, but also provide smooth and efficient travel across the region,” said Sameer A Rehman, Managing Director of Asia Pacific, Bell Helicopters. “We are delighted to showcase the versatility of this aircraft to our Asia Pacific customers. The new Bell 412EPI offers more powerful engine performance with a state-of-the-art integrated glass avionics suite that improves situational awareness and reduces pilot workload. We are eager for our customers to experience the power of this aircraft first hand.”

The Bell 412EPI improves the Bell 412 platform with the Bell BasiX Pro fully integrated glass flight deck, providing critical flight information at-a-glance for

greater situational awareness and safety. The Bell BasiX Pro system is specifically designed to meet the requirements of twinengine helicopters and is optimised for IFR, Category A and JAR OPS3 compliant operations. The avionics suite also includes high resolution digital maps, electronic charts and approach plates, ADS-B transponder and optional HTAWS and XM satellite links. The Bell 412EPI features the BLR Strake and FastFin system, which modifies the tailboom to optimize airflow and improve handling, safety and lift. The Bell 412EPI also incorporates the power of Pratt & Whitney's PT6T-9 Twin Pac engines, providing 15 per cent more horsepower than the standard Bell 412.

Bell goes for expansion in Europe

ell Helicopter’s Prague location officially opened a new paint facility and delivery centre –providing full aircraft completion and delivery capabilities to its European customers. “Bell Helicopter’s continued investment in the region reinforces our commitment to our European customers to provide an in-region facility that offers the industry-leading service and support we are known for worldwide,” said Glenn Isbell, Executive Vice President, Customer Support and Services for Bell Helicopter. “We are continually assessing our service capabilities to find innovative solutions to best meet our customers’ mission requirements.” The Bell Helicopter facility in Prague provides full maintenance, repair and overhaul capabilities. It is the company’s

official regional customisation, delivery and aftermarket service center in Europe – complemented by Bell Helicopter’s extensive support and service network located throughout the region. “We are excited that we have added full paint and delivery capabilities, with the installation of two brand new paint booths and a new delivery center onsite,” said Joachim Goldenberg, General Manager for Bell Helicopter in Prague. “Our customers demand excellence and we are working hard to exceed their expectations.” Bell Helicopter also announced just last year that it will be partnering with its sister company, TRU Simulation, for the first Bell Helicopter regional training centre in Valencia, Spain. The facility is anticipated to open in late 2016. CRUISING HEIGHTS June 2016

Third AW609 starts flight tests

he third AW609 civil tiltrotor, AC3, recently completed its first restrained ground run at the Leonardo-Finmeccanica facilities in Cascina Costa, Italy, with all engines and systems operating. The aircraft will join the US Federal Aviation Administration’s flight-test programme at the company's Philadelphia plant this summer. Testing plans for AC3 include icing trials scheduled for this coming winter. The ground run of the third prototype followed the resumption of test activities with the first prototype, AC1, on April 15. The flight-test programme had been

30000+ hours and still chopping around

irbus Helicopters recently delivered a H125 to Réseau de transport d'électricité (RTE) at a ceremony, at its headquarters in Marignane, France, where the company also celebrated a major milestone of one of RTE’s pilots who recently clocked in more than 30,000 flight hours, the majority of which was on Airbus Helicopters Ecureuil aircraft. On February 4, Bruno Decelle flew an AS350 B3 on a trip from Saint-Etienne, France to Albertville near the ItalianSwiss border. He achieved a staggering milestone when he flew over the Les Bauges mountain range at the foot of the French Alps, surpassing more than 30,000 helicopter flight hours. Decelle is one of the first pilots to have achieved this milestone in Europe. He spent the vast majority of his flight hours in low-to-the-ground flying — less than some 30 meters from the ground — and in close proximity to high voltage power lines. Decelle was awarded the French Aeronautical Medal and received the ‘Helicopter Award’ from Airbus Helicopters for the 20,000 flight hours flown on an AS350 — the most of any pilot to date.

on hold following the fatal crash of AC2 on October 30 in Italy, outside Santhia in Vercelli province. That accident killed company test pilots Pietro Venanzi and Herb Moran. While the cause of the crash is still officially undisclosed, Leonardo officials indicated in February that they were confident of its cause and that it would have minimal effect on the flight-test and aircraft-certification programme. At that time they said they planned to finish the test programme with three aircraft. The fourth prototype, AC4, is undergoing assembly in Philadelphia and destined to enter the test fleet next year. The OEM expects to earn certification of the AW609 in 2018 and will start deliveries immediately thereafter.

Showcase for charity calendar

ondon’s Air Ambulance has launched a photography competition calling on the public to submit photos of their helicopters and rapid response car fleet to fill their 2017 Charity Calendar. Money raised from the sale of the calendar will help them to deliver their advanced trauma team to critically injured people in London, and continue saving lives in the capital. The organisation treats on an average five people a day. Their fleet of helicopters, used during daylight hours, and rapid response cars, used at night or in adverse weather conditions, are photographed by thousands of people across London each year, often in some high profile locations such as Buckingham Palace, the British Museum, Trafalgar Square and Horse Guards Parade. Mark Davies, Director of Development at London’s Air Ambulance, said: “We receive so many fantastic photos from members of the public who kindly donate them for the charity’s use. This competition is now a great opportunity for people to showcase their work more widely, while at the same time raising money.”

Airbus Helicopters showcases H135 at HeliRussia 2016

irbus Helicopters participated in the recently-held international helicopter industry exhibition HeliRussia 2016 in Moscow. The company presented its vision of the development of the Russian Emergency Medical Services (EMS) market during the Air Ambulance and Medical Evacuation Conference during the exhibition. “Airbus Helicopters, as a leader with over 50 per cent of the market share in the EMS segment, is ready to contribute to the development of the emerging market of emergency medical services in Russia,” said Emeric Lhomme, CEO of Airbus Helicopters Vostok. “HeliRussia is a unique opportunity to present our specific solutions to the key market players and how they meet the demands of the Russian market” he added. In February 2016 Airbus Helicopters and Ural Works of Civil Aviation (UWCA) signed an agreement on the licensed assembly of H135 helicopters at the Russian manufacturer’s facility in Yekaterinburg. The H135 family is a global benchmark for EMS and medical evacuation with over 500 aircraft flying on this segment. “The H135 fully corresponds to the needs of the rising EMS market in Russia. Airbus Helicopters is ready not only to invest in the development of this segment through the assembly partnership with UWCA, but also to share

CRUISING HEIGHTS June 2016

the experience and technological knowhow with our Russian colleagues and partners” said Lhomme. Visitors at the Airbus Helicopters booth were also able to see a mock-up of the H160, the most recent development at Airbus Helicopters. This helicopter, incorporating 68 dedicated patents, combines form and function in a striking design. The H160 is tailored for a wide range of applications, including emergency medical services, oil and gas operations, public service, and private and business aviation. Airbus Helicopters recently delivered a H125 to Réseau de transport d'électricité (RTE) at a ceremony, at its headquarters in Marignane, France, where the company also celebrated a major milestone of one of RTE’s pilots who recently clocked in more than 30,000 flight hours, the majority of which was on Airbus Helicopters Ecureuil aircraft. On February 4, Bruno Decelle flew an AS350 B3 on a trip from Saint-Etienne, France to Albertville near the Italian-Swiss border. He achieved a milestone when he flew over the Les Bauges mountain range at the foot of the French Alps, surpassing more than 30,000 helicopter flight hours. Decelle is one of the first pilots to have achieved this milestone in Europe. He spent the vast majority of his flight hours in lowto-the-ground flying — less than some 30 meters from the ground — and in close proximity to high voltage power lines.

CRUISING HEIGHTS

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Silicon Valley moves

into air travel

INSIDE

53 INNOVATION Delta introduces new paper RFID luggage tags

NEW TECHNOLOGY Gatwick Airport launched the world’s largest bag drop facility

HELPING HAND Leo, provides a helping hand to passengers at Geneva Airport

The International Air Transport Association (IATA) along with airlines and airline suppliers met at Silicon Valley for a special Plug and Play event that promises to improve and enhance air travel in the next few years. A report.

n what could turn out to be a major step for the aviation industry, the International Air Transport Association (IATA) recently met representatives of airlines and airline suppliers in Silicon Valley with a specific reason: understand the fresh perspectives and the inspiration to improve air travel. Part of IATA’s Simplifying the Business (StB) initiatives that include global passenger experience improvements, the others in the picture were Plug and Play and, of course, Silicon Valley innovators. Stephan Copart, Head of Strategy and StB, FDS (Financial and Distribution Services) Transformation, “We wanted to be exposed to the startups and big corporations as well that have a big space in innovation and also understand from the venture capitalists where the trends are coming from.” Copart went on to say that IATA “contacted Plug and

STEPAN COPART

Head of Strategy and StB, FDS at IATA

“A team in IATA today dedicated to finding ways to streamline that and build frameworks around bringing the trust framework around identity verification, and bringing the digital identity with the physical identity and eventually streamlining the process on the ground” CRUISING HEIGHTS June 2016

Play – which was just starting their travel and hospitality practice, so there was a common interest to build an event there – and they agreed to organize this innovation tour for IATA.” Copart also mentioned that there was “a team in IATA today dedicated to finding ways to streamline that and build frameworks around bringing the trust framework around identity verification, and bringing the digital identity with the physical identity and eventually streamlining the process on the ground.” Plug and Play selected a number of startups for IATA to meet with which matched the objectives of StB that IATA had shared, and organized tours and meetings with Google, IBM Labs, and others. IATA was focused on technology trends which might address baggage handling and tracking, and streamlining identity management on the ground, including at immigration and security. Another area was the payment space. Copart said that IATA wanted the Plug and Play event to inform its B2C focus “how we can remove as much friction as possible for passengers to pay for their products or ancillaries”. The group also looked at Open APIs to accelerate the time to market of the Association’s industry standards. At the end of it all, Copart said, “It was really an eye opener, and really inspiring on what we could do and what we could

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learn from the space and our future initiatives”. For IATA this is about looking beyond incremental changes to what improvements technologies could make possible over the next three to 10 years. “This year we said we’d like to start from a blank piece of paper again and see what could be the next game changer,” said Copart. “(We’re) trying to identify key things that could be driving our thinking process. The principle being, should we start an airline today — should we start this industry today — would we do it as we have it now? Probably not. Or, probably not in certain areas. Let’s not have a look at legacy, we want to have a look at the things (which could) transform the various areas.” IATA was determined to have the Plug and Play event encourage industry collaboration and stakeholder buy-in on the idea of working beyond “legacy”. To ensure this, the group attending the event included Airlines for America, various industry technology companies, and representatives from airlines and airports around the world; around 30 people in all. “By facilitating collaboration between IATA and our startups, we hope to not only be able to move the needle in the industry, but truly set measurable milestones that could positively impact the future of the travel industry,” said Amir Amidi, Managing Partner of Plug and Play Travel. The Plug and Play event is part of an ongoing programme of passenger experience improvements and digital innovation IATA is spearheading through StB, and a dedicated Think Tank, which includes hosting dedicated Hackathons and the annual World Passenger Symposium. “The World Passenger Symposium, is really driving the agenda of IATA — the agenda of the industry. It’s changing the debate but also accelerating the awareness and driving the change on those initiatives,” Copart said. Plug and Play is a global innovation platform that connects startups to corporations and invests in more than a 100 companies every year. It nurtures innovation in a wide range of industries and is building strong partnerships in the travel sector, especially with airlines. Plugand-Play believes that airlines have improved their bottom lines by entrusting outside providers with maintenance, manufacturing of certain

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Net Express

Speedread AMIR AMIDI

Delta set to roll out RFID baggage tags

“By facilitating collaboration between IATA and our startups, we hope to not only be able to move the needle in the industry, but truly set measurable milestones that could positively impact the future of the travel industry,”

Managing Partner of Plug and Play Travel

aircraft components, catering, aircraft cleaning, ground service, and dozens of other steps involved in making daily flights run smoothly. That habit of outsourcing is the secret sauce giving airlines an appetite for the California startup rush. What’s outsourced to Silicon Valley today is billed as futureproofing or disruption, but in principle it is the same as outsourced recruiting or outsourced inventory management. That’s what startup connector Plug-and-Play has banked on. Airlines like Emirates, JetBlue, Lufthansa, Turkish Airlines and Carlson Wagonlit Travel, to name a few, have become Plug-and-Play corporate partners, hoping to tap-in to new technologies — or at least appear to — without spinning their in-house wheels. According to Bo Sakowski, Business Development Manager for Plug-andPlay Travel & Hospitality, “Airlines are massive operations and there’s a cost with that and the margins are small. So, any situation for them that we can put them in front of companies who will eventually cut their costs (is interesting to them).” He also pointed out that all airlines seem to have an underlying problem that they’re all trying to solve: operational efficiencies; everything that potentially links back to the passenger experience, where that’s baggage, booking tickets, providing customers travel experience enhancements...What we are trying to do is enhancing the passenger experience,” he said. “As a traveller, I feel we can do that.”

CRUISING HEIGHTS June 2016

elta Airlines is all set to roll out RFID luggage tags. The new programme will replace the barcode stickers with the paper RFID tags. RFID readers will be placed at various points along a bag’s journey and these will read the tag’s radio signal to ensure that each piece of luggage is headed in the right direction. Delta will equip approximately 344 airports with RFID readers. Delta clams to have a 95 per cent accuracy rate in routine bags and hopes to reach the near perfect 99.9 per cent.

Hong Kong Airlines introduces self bag drop service

onk Kong Airlines is all set to enhance the travel convenience of its passengers by launching Self-Bag Drop (SBD) service for its passengers departing from Hong Kong International Airport (HKIA). Six SBD machines will be installed at Hong Kong Airlines counters at HKIA. Ground staff of the airline will assist passengers with the new service. For the first two weeks, each passenger who uses the service will be presented with a gift as a token of gratitude for their support to the airline’s initiative. During the trial run, the SBD service will only apply to passengers with one checked baggage. Passengers with multiple bags will be able to avail the service after the official launch. The service will not be available to oversized and overweight checked baggage.

Cont

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BRITISH AIRWAYS

World’s largest bag drop at Gatwick Airport

BA set to launch inflight internet B ritish Airways is all set to launch highspeed inflight internet connectivity to its long distance flights from early 2017 and for this Gogo’s 2KU satellite based technology has been chosen. The service will debut on one of BA's refreshed Boeing 747-400 jumbo jets in early 2017, the airline said. Over a hundred BA flights will be fitted with the upgraded technology. The same technology will be available on Aer Lingus and Iberia flights. BA currently offers Wi-Fi but it is limited to flights between London and New York and it uses different technology and a different provider. The new technology will enable customers to stream videos from suppliers such as Netflix and Amazon. They will be able to use mul-

tiple devices at the same time and connection speeds, as well as bandwidth, will be similar to what they have at home. Willie Walsh, CEO of British Airways parent IAG, said the reason BA did not get the inflight internet technology earlier was because it was waiting for the right technology to match the passenger’s expectations. However the pricing for the service is yet to be announced. It might offer a flat pricing like Emirates and Etihad or adopt a two-tiered (two-speed) pricing model. British Airways began trials of inflight Internet in February 2014 on a single Boeing 747, with pricing at £10 for a single session lasting up to one hour or £17.50 to remain connected for up to 24 hours.

ITQ encourages innovation in its team

atwick Airport opened the world’s largest self-service bag drop area as part of the transformation of its North Terminal. easyJet, Gatwick’s biggest airline, will move its operations to the north terminal. A total of 48 fully automated self-service bag drop machines have been installed in the 5,000 sqm bag drop area. It will help to ensure more than 90 per cent of its passengers flying from Gatwick wait less than five minutes at bag drop. easyJet’s UK Director, Sophie Dekkers said, “The whole concept is about getting rid of queues and having big, open spaces. This is now our blueprint, our flagship.” She also revealed that the carrier internally referred to the new self-service bag drop area as the “airport of the future”. The £36 million project is a part of the airports ongoing £2.5 billion investment programme.

Hi-tech help for airport Ops Controllers

nterGlobe Technology Quotient (ITQ), a strategic business unit of InterGlobe Enterprises, organised an Annual Sales Conference recently to celebrate the success and achievements of the team. Various interesting sessions were held to blend in the motivation and learning with enjoyment at leisure. Based on the Leapfrog theme, the entire team was encouraged to take the leap from being hard workers to owners of their core functional areas, initiators of processes and thereby become innovators in their respective fields. Anil Parashar, CEO-ITQ, said, “Passion is the most important element in one's professional journey. We cannot be successful enough if we lack passion in whatever we do.

And the passion does not have an expiry date, it stays with you from the day it is ignited.” Sandeep Dwivedi, CCO-ITQ said, “This year we need to step back a bit and analyse how to do things in a better way, how to offer solutions rather than offering products per se. Customer orientation, data analysis and interpretation should play a key role in our service delivery and we can only do it if, we work together and create awareness across regions.”

CRUISING HEIGHTS June 2016

new Eye Tracking Feature has been developed for NetLine/Ops ++ operations control solution by Lufthansa Systems and it is powered by eye tracking technology leader SensoMotoric Instruments (SMI). The new and innovative feature will support the operations controllers, improving the quality of their decisions and help airlines save time and money. The operations control centre monitors flight operations and manages any changes so as to minimise passenger inconvenience. Operations controllers may have to keep an eye on six monitors at a time which show current flights and information about potential disruptions. This is a huge challenge and intelligent software solutions such as NetLine/ Ops ++ provide substantial support. The system generally only displays flights that have

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Leo lends a hand for luggage P

assengers arriving at Geneva Airport have been receiving help with their bag drop from Leo, an innovative baggage robot developed by air transport IT provider SITA, which is being trialed outside the airport’s Terminal 1. Leo is a fully autonomous, self-propelling baggage robot that has the capacity to check in, print bag tags and transport up to two suitcases with a maximum weight of 32kg. It also has an obstacle avoidance capability and can navigate in a high-traffic environment such as an airport. The robot provides a glimpse into the future of baggage handling being explored by SITA Lab and is the first step to automating the baggage process from the moment passengers drop their bags to when they collect them. Using robotics and artificial intelligence, bags will be collected, checked in, transported and loaded onto the correct flight without ever having to enter the terminal building or be directly handled by anyone other than the passengers themselves. Named after the Italian Renaissance inventor and engineer Leonardo da Vinci who built what is now recognized as the world’s first robot – Leo comes to the assistance of passengers as they approach the terminal building. Touching Leo’s Scan&Fly bag drop interface opens the baggage compartment doors to allow passengers to place their bags inside. After the passengers have scanned their boarding passes, the tags are printed and can be attached to the bag. With the bags

loaded and tagged, the compartment door closes and Leo displays the boarding gate and departure time. Leo then takes the bags directly to the baggage handling area where they are sorted and connected to the correct flight. The doors of the robot can only be reopened by the operator unloading the baggage in the airport. The use of robots like Leo means that in future fewer bags and trolleys will enter the airport terminal, reducing congestion and making airport navigation easier. Dave Bakker, President Europe at SITA said: “Through the innovative work of the SITA Lab we are able to tackle some of the key challenges that face airports today. Leo demonstrates that robotics hold the key to more effective, secure and smarter baggage handling and is major step towards further automating bag handling in airports. Leo also provides some insight into the potential use of robots across the passenger journey in future.” Massimo Gentile, Head of IT at Genève Aéroport, said: “In a busy airport such as Geneva Airport, the use of a robot such as Leo limits the number of bags in the airport terminal, helping us accommodate a growing number of passengers without compromising the airport experience inside the terminal. Leo also proves the case for increased use of robotics to make passengers’ journey a little more comfortable, whether it is checking in baggage, providing directions or helping them through the security process.”

LUFTHANSA SYSTEMS

Airbus boost to start-ups A

encountered organisational problems and require a decision to be made. It also sends alerts to make the user aware of the problem. This is where the eye tracking technology comes in. It analyzes the eye movements of operations controllers to determine whether they have noticed important messages or require an additional alert, such as a sound. A total of 69 airlines around the world are using the operations control system by Lufthansa Syatems, 31 of which have started using the new-gen solution.

irbus BizLab in Toulouse will be hosting its second round of start-ups. In the past year, Airbus BizLab hosted 15 start-ups and 27 Airbus internal projects on its six month acceleration programme. It has now invited inventive start ups to apply for its second call for projects applicable to the aeronautical sector. Once selected, these start-ups will be provided a wide range of support in the acceleration programme. The selected project candidates will have access to a large number of Airbus coaches, experts and mentors in various domains (technology, legal, finance, marketing, etc.); free office space, a dedicated mentor; learn and act sessions; access to prototyping and test facilities, and a demo day with Airbus decision makers, partners, subsidiaries, customers, and venture capital. The projects will include the development of a product, a service or an application related to augmented reality, as well as robotics, internet of things, passenger experience, digital

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factory and financial technology. Airbus BizLab has extended its international presences to three locations – Toulouse (France), Hamburg (Germany) and Bengaluru (India). Bruno Gutierres, Head of Airbus BizLab said, “The BizLab has been attracting innovative start-ups from all over the world. We are extremely proud that four of these start-ups, accelerated in the BizLabs of Toulouse and Hamburg, have just succeeded in obtaining substantial funding from global investors.”

AIR CARGO

Another tough year for air cargo

he International Air Transport Association (IATA) released demand growth data for global air freight markets for March 2016 showing a 2.0 per cent drop in volumes measured in freight tonne kilometers (FTKs) compared to the same period last year. In contrast, freight capacity (measured in available freight tonne kilometers or AFTKs) rose by 6.9 per cent, putting increased pressure on already struggling yields. The weak results reflect subdued growth in world trade, exaggerated by the comparison to a particularly strong start to 2015 when air freight volumes were boosted by the effects of the US West Coast seaports strike. The most significant fall in demand was reported by carriers in AsiaPacific and North America. Combined they account for around 60 per cent of global freight traffic and reported declines of 5.2 per cent, and 1.8 per cent, respectively. “It is shaping up to be another tough year for air cargo. February 2016 world trade volumes were only 0.4 per cent higher than at the end of 2014. And the expectations of purchasing managers gives little optimism for an early uptick. The combination of fierce competition, capacity increases and stagnant demand makes this a very difficult environment in which to generate profits,” said Tony Tyler, IATA’s Director General and CEO. African airlines witnessed a 3.1 per cent drop in demand in March 2016 compared to the same period last year. A more modest decline of 1.6 per cent was seen in year-on-year Q1 performance. Notably, on the back of long-haul expansion, the AFTKs for African airlines surged by 22.6 per cent year-on-year over the first quarter

of 2016. This is more decrease by 5.9 per cent in than double the pace March 2016 versus March February 2016 of any other region in 2015. Volumes are now world trade volumes recent months. almost 15 per cent lower were only 0.4 per cent Asia-Pacific that their seasonallycarriers saw a 5.2 adjusted peak in latehigher than at the end of per cent drop in The hardest hit 2014. And the expectations 2014. demand in March routes are those within of purchasing managers 2016 compared to South America, reflectthe same month last ing the region’s chalgives little optimism for year. The decline is lenging economic environan early uptick exaggerated by the efment, particularly in Brazil. fects of last year’s US seaMiddle Eastern carriers port disruption which fueled reported a 2.4 per cent increase in strong demand for the region’s carriers. demand over March last year—the slowest Nonetheless, demand is weak with export since July 2009. This reflects both a slowvolumes from emerging Asian economies down in network expansion by the region’s having contracted in annual terms for 11 of main carriers over the past six months and the past 12 months. weak trading conditions. European airlines saw demand for air North American airlines saw demand cargo grow by a modest 1.3 per cent in fall by 1.8 per cent in March 2016 versus March 2016, compared to the same period March 2015, partially due to the rollover in 2015, while capacity increased by 7.9 effect of the US port strike in 2015 which per cent. Weak cargo demand is a continugave air freight in the region a boost. Addiing story for European carriers for whom tionally, the region’s carriers are negatively cargo volumes stand at just 1 per cent impacted by the drop in global trade while above early 2008 levels. the strong US dollar is keeping exports unLatin American carriers saw demand der pressure. CRUISING HEIGHTS June 2016

Collaboration is key for UK air cargo growth

COLLABORATION: (L-R) Julie Maddocks, Head of Media Relations, FTA, Mark Olney, GM Cargo, Europe, Middle East, India & Africa, Air Canada Cargo; Nick Platts, Head of Cargo, Heathrow Airport Limited, Alex Veitch, Head of Global Policy, FTA, Larry Coyne, CEO, Coyne Airways Ltd, and Neil Robinson, Director of Sustainability, The Manchester Airports Group

he air cargo community in the UK would be far better at influencing government aviation policy if it collaborated more closely, according to Nick Platts, Head of Cargo, Heathrow. “I think that a community speaking with one voice would be an enormous benefit to the UK,” he told the audience at the Future of UK Airports seminar at Multimodal 2016. “Unfortunately I can’t see it happening as no one talks to each other.” He cited Schiphol as an example of a community that had worked together to transform itself into an ‘international benchmark’ airport. “It has got faults and problems, sure, but it is by far the best airport in Europe at influencing government policy.”

Alex Veitch, Head of Global Policy, Britain’s Freight Transport Association (FTA), explained that the FTA has set up a dedicated Air Freight Working Group and was keen to see more action from industry and government to facilitate exports through the growth of airfreight. “We want to make the call to action more compelling.” Larry Coyne, CEO of Coyne Airways Ltd, said his company no longer operated out of the UK as it was easier to operate out of Amsterdam. He rejected a suggestion that all cargo airports would be advantageous to operators like Coyne. “We are keen to see a balance of freighters and bellyhold cargo at an airport as that is how you get efficiency.” For Neil Robinson of The ManchesCRUISING HEIGHTS June 2016

ter Airports Group, which includes Manchester, East Midlands, Stansted and Bournemouth, it was important to look at short, medium and long term needs or the UK would lose out altogether. “Mainland European airports are absorbing UK volumes, impacting on connectivity and reducing overall GVA performance.” He echoed Platts’ call for close collaboration. “We need all stakeholders to speak with one voice on policies such as the environment and noise control.” Air Canada Cargo’s Mark Olney said the airline was investing in terminal facilities to improve efficiency and expansion would be welcomed at Heathrow, but “the most important thing is to get a decision, one way or another.”

AIR CARGO

SWIFT-ly does it

In its effort to usher in ease of doing business, the Central Board of Excise and Customs (CBEC) has brought in SWIFT (Single Window Interface for Facilitating Trade). The move has revolutionised the manner in which the air cargo business was being done. A report

“I

have never seen such a change in my 40 years in the air cargo industry.” That was Tushar Jani, Chairman, Delhi Cargo Service Center. A veteran in the cargo business, Jani is well known as an innovative entrepreneur – he was one of the founders and former Chairman of Blue Dart Courier Services and Blue Dart Aviation – and was speaking about the Single Window System introduced recently at international airports around the country. A significant part in the ‘Ease of doing business’ project initiated by the government of India, the Central Board of Excise and Customs (CBEC), of which Customs is an integral department, has launched SWIFT (Single Window Interface for Facilitating Trade). SWIFT went live on April 1, 2016 and, according to users, has hastened clearances for consignments while facilitated business. Incidentally, ACNFT was informed that a Single Window System would come into effect in the US by 2018. There are a few countries where such a system is in use and among them are Singapore, South Korea, Japan, Australia, Thailand and Malaysia. The CBEC had taken up the task of implementing the ‘Indian Customs Single

Window Project’ to facilitate trade. The project envisaged that importers and exporters – for the moment, however, SWIFT is meant for importers and a similar platform will be built for exporters – would electronically lodge their Customs clearance documents at a single point only with the Customs. The required permission, if any, from Partner Government Agencies (PGAs) such as Animal Quarantine, Plant Quarantine, Drug Controller, Food Safety and Standards Authority of India, Textile Committee, etc. would be obtained online without the importer/ exporter having to separately approach these agencies. This would be possible through a common, seamlessly integrated IT systems utilised by all regulatory agencies, logistics service providers and the importers/exporters. The Single Window would thus provide the importers/exporters a single point interface for clearance of import and export goods thereby reducing dwell time and cost of doing business. With that aim in view, the Board had

CRUISING HEIGHTS June 2016

issued circulars to introduce a system of online clearance between Customs and the various departments. With the introduction of the facility, clearance from these regulatory agencies started online, and the physical ‘No Objection Certificates’ (NOCs) were no longer required – it has replaced nine separate forms required by six different government agencies and Customs – for clearance of goods. This online clearance under the Single Window Project has been rolled out at main ports and airports in Delhi, Mumbai, Kolkata and Chennai so far. It will be gradually extended across the country. SWIFT will benefit more than 97 per cent of the country’s imports. Hitherto, importers needed to get approvals from multiple government agencies for their consignments. According to officers from the Board, the single window connects the Customs department with 50-odd offices of six government agencies. As Najib Shah, Chairman, CBEC, informed, “An importer can electronically file a common integrated declaration with the

Customs department from the comfort of his office.” SWIFT was introduced after a concerted training and familiarisation effort by Satya Prasad Sahu, Commissioner Customs (Single Window), the leader of the Single Window project team that addressed stakeholders at different forums. To familiarize the trade about the Integrated Declaration form – developed by the CBEC, the form seeks to capture all the information required for import clearance by the concerned government agencies into the electronic format of the Bill of Entry – detailed presentations and interactive sessions were also held at all major Custom locations across the country. “This is a major initiative of the Department and is expected to significantly simplify and expedite the clearance process,” said Sahu. “The single window implementation is primarily for promoting the ease of doing business and it happens in small steps.” He went on to add that “Standard Operating Procedures (SOP) and timelines are really important for the Custom Clearance Facilitation Committee (CCFC).” The purpose of the CCSC, he explained, would not be to discuss individual cases but to drive ports and airports into a cycle of continuous input where issues are taken up, leading to continuous improvement in performance. “All stakeholders are requested to use CCFC to achieve efficiency in work,” said Sahu, who has served with the World Customs Organisation as Deputy Director and Senior Technical Officer in the area of Facilitation and Compliance. In fact, he is a lead resource on WCO instruments like the compendium on “How to Build a Single Window Environment”. TIACA chief Sanjiv Edward who is also head of Cargo Business at Delhi International Airport mentioned that the Single Window Clearance system was very important and the industry was committed to this initiative. The concept, he told ACNFT, was not new. Amsterdam, for example, had been working on such a move and has progressed but “they are still far away from what would be a single window concept”. As a community, emphasized Edward, “we must come together and make this work. The Single Window will showcase India as a country, which has made this concept a reality,” he said.

Air India to pay up $12.5 mn U

S-based law firm Robins Kaplan LLP announced that Air India and Air New Zealand – the last two defendants remaining among nearly three dozen air carriers sued in 2006 over a global conspiracy to artificially inflate the price of air cargo services – have agreed to settlements of $12.5 million (more than 10 per cent of its sales to and from the United States during the class period) and $35 million, respectively, bringing the decade-long litigation to a conclusion. The plaintiffs’ cumulative recoveries in Air Cargo Shipping Services Litigation surpass $1.2 billion. “After more than a decade of relentless effort, we are pleased to add these final settlements to our existing recoveries and achieve justice for those impacted by the defendants' alleged anticompetitive practices,” said Hollis Salzman, co-lead counsel for the plaintiff class and co-chair of the Antitrust and Trade Regulation practice group at Robins Kaplan. “The court correctly described this case as ‘irrefutably complex,’ and we were honoured to pursue it on behalf of the victims of collusion among air cargo shipping providers.” In criminal antitrust probes running parallel to the civil case, 21 different air cargo providers pleaded guilty and have agreed to criminal fines of more than $1.8 billion. Many of the world’s largest airlines were named in the civil class action lawsuit, which was scheduled for trial in September of 2016 in a New York federal court. Milestone events that occurred during the litigation include: • February 2006: Complaint filed against approximately three dozen air carrier defendants. • February 2014: Partial settlements surpass $750 million. • October 2014: Magistrate recommends the certification of a plaintiff class of direct purchasers. • April 2015: Total recoveries top $1 billion. • July 2015: Court certifies a class of direct purchaser plaintiffs and appoints Robins Kaplan co-lead counsel. CRUISING HEIGHTS June 2016

•

August 2015: Court denies defendants’ motion for summary judgment, grants plaintiffs’ motions, and sets trial for 2016. • January - February 2016: Settlements with Polar Air, Air China Ltd, and others leave Air India and Air New Zealand as only remaining defendants. Settlements with Air China and Air China Cargo and Polar Air Cargo, Polar Air Cargo Worldwide, and Atlas Air Worldwide reaching $150 million have been granted preliminary approval by the court. Polar Air Cargo, which along with Polar Air Cargo Worldwide and Atlas Air Worldwide Holdings has agreed on a $100 million settlement. Korean Air has paid out the most at $115 million, followed by Polar Air Cargo, while other high settlements have included EVA Airways at $99 million, Singapore Airlines at $92 million, China Airlines at $90 million, British Airways at $89 million, Lufthansa at $85 million, and Air FranceKLM-Martinair for $87 million. The lawsuit began in February 2006, following raids by government investigators worldwide. Criminal prosecutions by the US government resulted in over $1.8 billion in fines, but no restitution for victims. Instead, compensation for the customers overcharged by the price-fixing conspiracy came from the settlements achieved in this civil litigation. As the case progressed, and the plaintiffs expended more resources and gained more knowledge of the workings of the conspiracy, the settlements paid by the airlines as expressed in terms of a percentage of their relevant sales increased. The earliest settlements represented in the range of 2 per cent of sales and the final settlement accounted for more than 10 per cent of sales. The Air India and Air New Zealand settlements are subject to final approval by the court. The civil litigation titled ‘Air Cargo Shipping Services Antitrust Litigation, MDL No. 1775’, is pending before Judge Cogan and Magistrate Judge Viktor V Pohorelsky in the United States District Court for the Eastern District of New York.

AIR CARGO

Dream landing in Hyderabad

Adani Logistics chooses Kale’s TOS for its CFS

MR Hyderabad International Airport added a page in world aviation history — reiterating its infrastructure prowess – when it welcomed the world’s largest cargo aircraft, the AN-225 Myria Antonov of the Airlines of Ukraine on its Code F compliant runway. The flying behemoth holds almost 240 world records under its belt, powered by six super-charged turbo-fan engines, operated by a six-man crew, lifting a mammoth 640 Metric Tonnes of MTOW (Maximum Take Off Weight). It hurtled down in the wee hours of the night on May 12 at Rajiv Gandhi International Airport, Hyderabad, parking at the airport’s Code-F (Airbus A380 Compatible) cargo apron. Hyderabad Airport was chosen over other Indian airports for the halt of AN 225 Myria (Dream in Ukrainian), for the airport’s technical expertise based on several factors such as runway length, ground manoeuvring area, technical facilities, air traffic density and proximity to the trans-continental air route. The aircraft arrived from Turkmenbashi in Central Asia and after 24 hours halt at Hyderabad proceeded to Jakarta Indonesia and thereafter to its final destination: Perth in Australia. There are only a few airports in world which can accept this kind of aircraft because of the length and width of the AN 225. Its wingspan is wider than even the world’s

largest passenger transport carrier, the Airbus A380 double decker aircraft. Talking about this proud moment, S G K Kishore, CEO, GHIAL said, “We feel privileged to host the world’s biggest, longest, heaviest aircraft at Hyderabad Airport. The landing of AN 225 Myria is testimony to our robust infrastructure, technical expertise and operational efficiency. That of all airports in India, Hyderabad Airport was chosen as the technical stopover for the aircraft of this size and volume reiterates our competence as a world class airport operator and a logistic hub.” Speaking further, Kishore said, “Hyderabad Airport is the only Greenfield airport in South India to have a functional standby runway for 24x7 flight operations. This helps in operating air services even during the maintenance of the main runway. Our infrastructure strength is also exhibited in the fact that we handled nine A380 aircraft movements which chose our airport for unscheduled landings and other services requirements. That’s the kind of reliability we offer to our esteemed airlines.” To bring this aircraft to make its maiden landing in India, leading Indian aviation player Air Shagoon (Network), led by its Managing Director Rishabh Birla, had been in touch with a number of Indian airports.

started to focus on e-commerce and Qantas and Austra- isthebeing express freight market. The network will consist of six freighter aircraft featurlia Post to operate ing StarTrack livery, with continued priority access to cargo space in the Qantas Group's freighter fleet passenger fleet.

antas and Australia Post will operate a dedicated domestic freighter network to be used exclusively by Australia Post and StarTrack (Australia's freight and logistics provider) customers, which

To be launched in July this year, the network is part of the five year contract, with a value in excess of $374 million signed last year for the transport of Australia Post's domestic mail, parcels and Express Post until

CRUISING HEIGHTS June 2016

dani Logistics Limited has selected Kale Logistics solutions as its preferred partner to develop a terminal operating system (TOS). This would encompass ALL’s entire range of operations including Inland Container Depot (ICD) a Container Freight Station (CFS), container train operations, coil and auto logistics and other allied processes. Speaking on the occasion, Anil Radhakrishnan, CEO, Adani Logistics said, “We selected Kale’s TOS for its extensive functionalities suite for a global organisation. We were looking for a partner who had long term vision, had done similar sized projects and knew application of IT to realise transformational effect on Business. Kale displayed the best understanding of our requirements and has one of the widest portfolios of proven Logistics IT solutions. We believe that their automation solution will bring in a lot of efficiency, cost reductions and control.” Adani Logistics is running container trains operations pan India with ICD and CFS facilities at Patli, Kishangadh, Mundra and Hazira. And ALL has planned to grow in line with the parent Adani Ports and Special Economic Zone.

mid-2020. Ahmed Fahour, Managing Director and Group CEO Australia Post, said the dedicated Qantas freighters would further strengthen the extensive delivery and logistics network that underpins both Australia Post and StarTrack. “This strategic alliance creates a greater opportunity for us to be first to deliver for our customers, combining our unrivalled delivery network and existing freight network with a dedicated and flexible

dnata handles 1 million tonnes+ at DWC

ne of the world’s largest air service providers, dnata has handled more than one million tonnes of air freight at Dubai World Central (DWC), since its first full year of operation in 2011. In just five years, dnata has reported 90 per cent increase in freight volume, recording 170,260 tonnes in 2015, up from 89,729 tonnes in 2011. The original growth forecast was 20 per cent. In the Indian market, a total of 1,076 tonnes of cargo was imported in financial year 2015-16 and a total of 964 tonnes of cargo was exported in financial year 2015-16 to DWC. Bernd Struck, dnata’s Senior Vice President, UAE Cargo said, “This is a hugely significant milestone for all of us at Dubai World Central. The growth we have experienced over the last five years is thanks to not only dnata, but the combined hard work and commitment of Dubai Airports and all of the stakeholders involved in creating a world-class logistics platform with unparalleled connectivity, speed and efficiency.” Expected to be the largest airport in the world once completed, dnata handled unique and unusual cargo at Dubai World Central.

air network,” Fahour added. From July 2016, the network will service nine destinations across the East and West coast of Australia using one Boeing 737-400, two 737-300s and three BAE146-300. Including the additional 737-400, Qantas Freight will have a total of 14 aircraft.

Further and

faster D

HL has successfully completed the trial run of its third generation Parcelcopter. The trial was conducted from January to March this year in the Bavarian community of Reit im Winkl where the drone made more than 100 successful deliveries carrying parcels to and from set locations. Customers were invited to test out the specially designed Packstations, dubbed the Parcelcopter Skyport. Parcels were placed in the Skyport to initiate automatic shipment. It would then be loaded on the drone that would then take-off and fly to another port eight kilometers away. The drone would arrive at the Alm station in just 8 minutes compared to the 30 minutes taken by car. The entire system worked automatically, without human intervention. The drone’s cargo was typically either sports goods or urgently needed medicines.

DHL launched its first drone delivery service in 2013, with the development of its first Parcelcopter. The first Parcelcopter was launched in December 2013 and used to cross the river in Bonn and covered a distance of one km. The second generation Parcelcopter, launched in 2014, was tested on the North Sea island of Juist. This was the first and only time in Europe that a flight by an unmanned aircraft was operated outside of the pilot's field of vision in a real-life mission. It was completely automated and covered a distance of about 12 km. The third generation has taken it to the next level by delivering the parcel at an altitude of roughly 1200 metres above sea level. It has two tilt-rotors that allow vertical take-off and landing like a helicopter and then convert to zip forward like an airplane flying at about 70 km/hour.

Lufthansa, Cathay launch air cargo network

o create a cargo network between Hong Kong and Europe, Lufthansa cargo and Cathay Pacific cargo have joined hands. Initially, shipments would fly from Hong Kong to Europe, with eastbound services to follow later in the year. The joint venture would increase the airlines’ network, boost time efficiency and contribute towards overall service improvements, said the carriers. “Our joint network will cover more than 140 (L-R) Mark Sutch (GM Cargo Marketing & Sales Cathay Pacific), Simon Large direct flights a week between (Director Cargo, Cathay Pacific), Peter Gerber (CEO and Chairman of the Hong Kong and 13 European destinations,” said Simon Large, Executive Board of Lufthansa Cargo) and Bernhard Kindel bacher (Senior Vice President Strategy, Subsidiaries & Business Development Lufthansa Cargo) Cathay’s Director of Cargo. The entire joint network have to be transported by freighter due to their would be accessed by customers via either carsize or properties,” said Peter Gerber, Lufthansa rier’s booking systems, while joint handling at the Cargo’s CEO. “By us joining forces, customers hubs in Hong Kong and Frankfurt will mean just gain access to unique flexibility, with more flights one point for export drop-off and import delivery. to choose from and a combination of feeder and Pairing with Cathay Pacific Cargo will direct services. In this way, their cargo can reach provide “more options for shipments which its destination hours earlier.” CRUISING HEIGHTS June 2016

AVIATION UPDATE

Air India introduces seat selection facility N

ational carrier Air India has, for the first time in its history, introduced a seat selection facility for its passengers. Under the scheme, any passenger can book a seat on payment of a fee. “Effective May 1, 2016, the preferred seat select scheme is available on every single route operated by Air India. These seats which can be availed by a passenger in exchange of payment provide comfort of extra leg space and that of deplaning much faster upon arrival,” the airline said in an email to travel agents. Flyers can book preferred seats from Air India’s call centre and the facility of advance seat selections will be available till three hours before departure of each flight, the email added. New routes added: Air India’s wholly owned subsidiary, Alliance Air, started flights on Bhopal-Jabalpur-Hyderabad and Bhopal-Raipur-

Pune sectors. Effective May 23, these services have fulfilled a long standing demand of the students’ community, IT, Industrial and defence sectors. Alliance Air operates a 72-seater ATR aircraft on these routes thus giving connectivity to smaller destinations within the country under the Government’s Connect India programme of connecting all cities in India. “Cities like Indore and Jabalpur have grown over the years and needs air connectivity. These flights will also provide traffic to Air India for its international and other network from these cities,” according to a senior Air India executive. The executive said Air India’s Chairman Ashwani Lohani has written to the different state governments requesting for a meeting to discuss the possibility of having Alliance Air flights in their states. “The air connectivity would depend on the potential of that particular market,” the executive added.

Vistara to launch Delhi-Kolkata and Delhi-Kochi service

istara, the joint venture between Tata Sons and Singapore Airlines, is going to start two direct daily flights from Delhi to Kolkata and one daily non-stop flight to Delhi- Kochi from June 10 and June 20 respectively, expanding its base in India. Commenting on the new flights, Phee Teik Yeoh, CEO, Vistara said, “The City of Joy, Kolkata, encapsulates the essence of modern India as a key commercial and educational centre that attracts a large number of business visitors and tourists from India and around the world. With the addition of Kolkata in Vistara’s network and introduction of direct flights between Delhi and Kochi, shortly after the launch of Jammu, Srinagar, Kochi and Chandigarh, Vistara’s footprint in India continues to grow at a rapid pace further enhancing the base of airline’s loyal customers.” With the addition of these flights, Vistara will be operating a schedule of 455 flights per week, a 44 per cent increase from 317 flights a week it operated at the start of the year. Sanjiv Kapoor, Chief Strategy and Commercial Officer, Vistara, added, “As a native of Kolkata, it gives me special pride to see this great, passionate, colorful, and multicultural city added to our rapidly growing network. We are confident that travellers on our new flights will welcome the opportunity to enjoy the quintessential Vistara experience that includes exceptional service from cabin crew trained by Singapore Airlines.” Tenth plane inducted: Vistara also inducted the tenth plane into its fleet from the European aircraft manufacturer Airbus’ Toulouse (France) facility. The service started from May 12 will use the new Airbus A320 aircraft used for scaling up frequencies to Goa and Bengaluru. Now, Vistara offers three flights a day on the Delhi-BengaluruDelhi sector and two daily flights on Delhi-Goa route. Vistara had inducted nine aircraft (Airbus A320s) since September 2014 as part of its plans to have a fleet of 20 aircraft by 2018.

CRUISING HEIGHTS June 2016

GoAir to start evening flight on Delhi-Srinagar route

umbai-based carrier GoAir will launch a daily evening flight service to Srinagar from New Delhi, as part of its network expansion plan. Scheduled to start from June 15, this flight will make GoAir the only carrier to have evening services to and from Srinagar. “Effective June 15, the GoAir flight G8 229 will take off from Delhi at 16:50 hours and arrive in Srinagar at 18:10 hours while the return flight G8 228 will take off from Srinagar at 18:40 hours and arrive Delhi at 20:05 hours,” the airline said in a release. According to the airline, there was a long-standing demand from local authorities, leisure travellers and various trade organisations for operating flights post 6 pm in the valley. “Srinagar has been a focus city for GoAir since long and it has always served the valley with first arrival and last departure flights for the last three summer seasons. With this new flight, GoAir will now serve Srinagar to Delhi 6 times non-stop,” GoAir’s Chief Executive Officer Wolfgang Prock-Schauer said. The new evening flights will help local traders and officials transiting between Srinagar and Delhi, the airlines said, adding leisure travellers can now spend more time in the valley before heading back home.

Air Pegasus starts flight to Kochi

Ventura AirConnect awarded intra-state flight operations

engaluru-based regional airline Air Pegasus has started single daily return flights between Bengaluru and Kochi from May 18. Kochi was the second city in Kerala to be connected with Bengaluru after Thiruvananthapuram. In its second year of operation, this is the seventh city that Air Pegasus has connected in South India. A second flight would be operational soon. Air Pegasus currently operates flights to Hubli, Thiruvananthapuram, Madurai, Mangaluru and Chennai. The airline has started flights to Goa from May and plans to connect Tuticorin, Vijayawada, Rajahmundry and Puducherry.

IndiGo to expand domestic services

ow-cost carrier IndiGo is expanding its domestic network with its first daily non- stop flight between Hyderabad and Coimbatore; and Hyderabad and Nagpur from June 22, 2016. The airline will also introduce its second flight connecting Hyderabad to Kochi. Effective May 16, 2016, the carrier has started an additional flight connecting Delhi to Ranchi. Commenting on the new flight schedule, Aditya Ghosh, President IndiGo said, “It gives me immense pleasure in announcing these new flight frequencies to our passengers. Having flown over 129 million passengers across the globe, we at IndiGo are determined to provide the best travel experience to all our customers. It is our constant endeavour to provide more flexibility of choice to our customers as IndiGo continues to offer them on-time, hassle free and an always affordable flying experience.” New CFO appointed: Indigo has named Rohit Philip as its Chief Financial Officer. Philip, who previously worked as corporate Vice-President and treasurer of Xerox Corporation, replaced Pankaj Madan who is leaving the airline to pursue other interests. He will assume charge from July 18. “I am delighted about joining the IndiGo team at this very exciting stage of the airline’s journey,” said Rohit Philip in a statement.

CRUISING HEIGHTS June 2016

urat-based airline Ventura AirConnect has decided to start intra-state flight services connecting Ahmedabad with major cities of the Gujarat. The decision came as the airline has won the state government’s tender to launch intra-state air connectivity. “We have got intimation from the Ministry of Civil Aviation and DGCA to restore our permission and we will be back to sky in the next few days. We have won the tender to provide intra-state connectivity in Gujarat,” said Kartikey Garasia, CEO, Ventura AirConnect. The airline — Ventura AirConnect — is owned by Diamond Aeronautics Pvt Limited, formed by a group of diamond merchants from Surat. The company is expected to provide services for three years with government subsidy of Rs 22,900 per flying hour for monthly 200 hours. “Post the award of the tender, now Ahmedabad will be connected to Bhuj or Kandla, Surat, Keshod, Porbandar and Rajkot. The city of Surat will be connected to Rajkot, Bhavnagar and Jamnagar. These are initial routes and we plan to add more in future. The flight timings will be published once appropriate permission for parking slots at particular airports are received,” Garasia said.

SIA India-bound flights move to T3 at Changi

ingapore Airlines has shifted all its India-bound flights to Terminal 3 from Terminal 2 at Changi Airport. “From May 17, all Singapore Airlines flights to India and South Africa will depart from Terminal 3,” according to the airlines website. In India, Singapore Airlines (SIA) operates to New Delhi, Mumbai, Bengaluru Kolkata, Chennai and Ahmedabad. Flights operated by SilkAir remained at Terminal 2, along with all Singapore Airlines flights from Singapore to Dhaka, Colombo, Male and Dubai, the airline’s website added.

AVIATION UPDATE

Scoot to Amritsar, Chennai S

ingapore-based low-cost carrier Scoot has started services to Amritsar and Chennai from Singapore, effective May 24. Scoot’s service to Amritsar operates thrice weekly and would increase frequency with an additional flight from July, restarting the Singapore-Amritsar route for the SIA Group. The airline also operates a daily direct service to Chennai from Singapore with a 335-seater Boeing 787-800 aircraft. Scoot took over the Singapore-Chennai daily service from Tigerair, expanding capacity to Chennai for the SIA Group with its new and spacious Boeing 787 Dreamliner as the world’s first all-787 operator Chief Commercial Officer for Scoot and Tigerair, Leslie Thng said, “India is one of the fastest growing aviation markets in the world and Scoot is excited to present exceptional value, an empowering selection of customisation options including inflight connectivity and in-seat power, as well as service with Scootitude to guests flying into and out of India.” “Guests from India can now fly to amazing destinations in our AsiaPacific network through the Singapore hub, as well as onward with Singapore Airlines, SilkAir and Tigerair in the SIA Group portfolio,” he added. Scoot would also start Singapore-Jaipur services four times weekly from October. Indiver Rastogi, President and Country Head - Corporate Travel, Thomas Cook (India) Ltd commented: “The launch of Scoot Airlines in India is a significant step in opening up the Indian skies and accelerating overall growth for the aviation and travel and tourism industry. Middle

India offers powerful potential as an outbound growth driver and the entry of low cost carrier Scoot, seems intent to harness this yet underleveraged opportunity via their hub-spoke source city or markets, example Chennai and Amritsar (targeting the bigger pie of South India and Punjab); also serving to focus on the two vibrant inbound tourist hubs in tandem with PM Modi’s sustained focus on India Tourism.”

AirAsia Berhad to suspend Kaula Lumpur-Goa route

alaysian low-cost carrier AirAsia Berhad announced that it was suspending its thrice weekly flights between Kaula Lumpur and Goa from June 7. The decision to suspend the flight has been taken as part of its route rationalisation initiative, the airline said in a statement. Spencer Lee, Head of Commercial for AirAsia Berhad said, “We take very careful considerations for every new route that we introduce. However this suspension is due to our route rationalisation exercise. Despite this route adjustment, we remain committed to the Indian market and look forward to return to Goa in the future.” Guests who are affected by the suspension of this flight will be offered options to alleviate any inconvenience that might occur, the airline’s statement said adding that they will be notified directly via their registered member e-mail account, as well as via an SMS notification. They have the option of either flying on the earlier date or getting refund on their tickets, the statement added. AirAsia launches ATSC in Maldives: Malaysian low-cost carrier AirAsia has launched its first AirAsia Travel and Service Centre (ATSC) in Maldives, which is operated by All H Maldives Private Limited. Aireen Omar, CEO of AirAsia Berhad said, “We are pleased to further strengthen our presence in the Maldives with the launch of AirAsia Travel and Service Centre. With its central location in Male, it is an added convenience for guests who are not able to book their AirAsia flights online.”

IndiGo to connect Kochi-Muscat

The AirAsia Travel and Service Centre is a one-stop centre offering services such as flight bookings to all AirAsia and AirAsia X’s extensive route network, as well as hotel and tour activities.

RwandAir to start direct flights to Mumbai

lag-carrier of Rwanda, RwandAir announced that it would begin flights to Mumbai in September. The airline would fly direct between Kigali and Mumbai, with a stopover in Dar-es-Salaam, Tanzania. RwandAir would serve the route with four weekly flights. John Mirenge, Chief Executive Officer, RwandAir said, "This is a big milestone for the airline as we continue to expand and open Rwanda to the world. As we introduce widebody aircraft into our fleet, Mumbai was seCRUISING HEIGHTS June 2016

ow-cost carrier IndiGo is enhancing its customer experience in the international market with the launch of its first daily non-stop flight between Kochi and Muscat, effective June 21, 2016. Aditya Ghosh, President, IndiGo said, “It gives me great pleasure in announcing this new service on our international network, connecting Muscat to Kochi. We are confident that this new service will prove immensely popular with our customers. With the increased flow of tourists and business traffic, we are pleased to provide direct and daily connections to meet the requirements of our customers. It is our constant endeavour to provide more flexibility of choice for our customers as IndiGo continues to offer them on-time, hassle-free and always affordable flying experience.”

lected to be our first long haul destination and will definitely connect the people of Rwanda and India together. We are extremely happy and very enthusiastic about the exchanges between the two countries."

Jet Airways to add more frequency to Dammam

o boost its operations to the Saudi Arabian port city of Dammam, Jet Airways has announced that it would launch additional daily services from Mumbai and Delhi. From July 1, the airline would increase the new service, one each from Delhi and Mumbai. Gaurang Shetty, Whole Time Director, Jet Airways said, “We have seen a significant increase in traffic from Mumbai and Delhi to Dammam. As the preferred airline on the highly competitive Indo-Gulf route, we constantly offer our guests unparalleled levels of service with unmatched quality. Through the introduction of these additional flights we can now offer our guests greater convenience, more choice and increased flexibility in their travel to and from Dammam.” A330-200 on Mumbai-Singapore route: Jet Airways has also decided to upgrade its daily flight between Mumbai and Singapore by deploying A330-200 aircraft, effective June 1, which would result in a 50 per cent increase in capacity compared to the Boeing 737 currently operating on the route. The A330-200

Air India Express starts Delhi-Dubai flights

ir India Express has started direct services from New Delhi to the United Arab Emirates (UAE) from May 15. “The inaugural flight to Dubai, IX 141, took off with 166 passengers from New Delhi at 9.05 am. The daily flight to Abu Dhabi also started,” Air India Express said in a release. Kochi-headquartered Air India Express operates the two direct flights to Dubai and Abu Dhabi daily. New Boeing 737-800 aircraft with capacity to carry 189 passengers are being deployed.The entry of Air India's international budget arm into Delhi is likely to intensify competition in the lucrative Gulf routes from the national capital since other Indian carriers have recently increased their frequencies. Ahmedabad-Newark route to be restored: Air India would restore the Ahmedabad-London Heathrow-Newark route with Boeing 787-8 Dreamliner aircraft, according to Airline Route. Effective from August 15, the restored route would be operated thrice a week. It was last operated in 2009.

offers two-cabin seating configuration of 18 seats in Premiere and 236 in Economy. Jet Airways Whole Time Director Gaurang Shetty said, “We are happy to deploy Jet Airways’ spacious and modern wide body aircraft cater-

ing to additional capacity on the highly popular Mumbai — Singapore — Mumbai route. This sector has seen a growth in traffic by over 34 per cent in last two years, particularly among business travellers.”

Cathay Pacific opens new Vancouver lounge

athay Pacific has launched a new lounge at Vancouver International Airport. Situated in the international terminal between departure gates D66 and D67, the facility adopts the same design template by Studioilse (London-based design firm) found in the Cathay Pacific lounges at Hong Kong, Manila, Bangkok, Taipei and Tokyo Haneda airports. Measuring 510 square metre, the Vancouver lounge has seating for 108 people. And for busy business travellers, the lounge has three individual workstations with iMacs and printers in The Bureau. Complimentary wifi is available throughout the lounge. Nick Hays, Cathay Pacific’s Vice President Canada said, “We aim to offer the very best traveller experience when flying Cathay Pacific and we believe this spectacular new lounge is a reflection of how important this market is to the airline.”

Cathay Pacific reviews new Business Class Lounge: Cathay Pacific hosted a preview of its new Business Class Lounge at The Pier at Hong Kong International Airport (HKIA), following a complete refurbishment. Located at Gate 65 in the North West concourse of the Hong Kong International Airport, The Pier’s new Business Class Lounge covers an area of 3,306 square metres, with seating for up to a whopping 550 people. Designed by London-based Studiolise, The Pier Business Class Lounge is accessible to First and Business Class passengers, Silver and above Marco Polo Club members, members of all tiers who earned lounge passes or their friends and family members, and Emerald and Sapphire oneworld members who are departing or transiting in Hong Kong. CRUISING HEIGHTS June 2016

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AL-BAKER'S KNOCKOUT PUNCH

t is a war of sorts reminding one of the kind that international professional boxers wage before an actual bout. Only this time around, it is between two airlines and their CEOs. Weapons of war: a Hollywood actress and an iconic theatre. The war goes way back to February 2015 when the US Big — American, Delta and United — went to town claiming that the ‘Big Three’ from the Gulf — Emirates, Etihad and Qatar — were being improperly subsidised. The US carriers called themselves the Partnership for Open and Fair Skies. In the wordy duels that followed the then-Delta CEO Richard Anderson said that it was ironic of the Gulf carriers to suggest that bankruptcy protections were similar to government subsidies since the Gulf region was the source of the September 11, 2001 attacks that hurt the US airline industry. Though he apologized later, the wound he had inflicted prompted the feisty Qatar Airways CEO Akbar Al Baker to hit back – and he did in his own style. It was a revenge: premeditated and strategized. In Delta’s Chief Legal Officer Peter Carter’s words: “When the CEO of Qatar first told the world that they would be flying to Atlanta, what he told the world was that he was going to start a flight from Doha to Atlanta… to rub salt in the wounds of Delta.” Al Baker poured more salt in Delta’s wounds when he got Hollywood star Jennifer Lopez to perform in Atlanta’s Fox Theatre, that Delta had been supporting for years. The private concert, held to celebrate Qatar’s June 1 Atlanta launch seared Delta and a smarting Carter had to admit that “we were very surprised and disappointed when we learned that the Fox Theatre — an organisation that we’ve supported for years, an organisation that has called us its official airline — we were shocked and surprised when we learned that they were hosting the coming out party for Qatar”.

Carter also mentioned that Fox was “a real friend” and Delta expected it to “have contacted us and had a conversation with us, and so we thought it was time for us to re-evaluate that relationship…We were disappointed that we didn’t get a phone call, because I think a phone call would have probably prevented the whole thing.” Incidentally, Delta came to know of the JLo event when it saw an invitation for the event. But the hit back by Delta was swift: it terminated its more than 20-year sponsorship of the Fox Theatre

that expires on May 31, 2017. This despite the statement from Fox pointing out that private events are “distinctly independent of any corporate sponsorship programme”. Hosting a private function for Qatar Airways “was in no way a violation of our contractual agreement with Delta”, Fox stated and mentioned “as we are not in tune with the industry politics of our sponsors, we are disheartened to learn that Delta has chosen to penalize the Fox Theatre for our decision to rent the venue to another airline”. The war is now out in the open. Keep your eyes open for more battles…

CRUISING HEIGHTS June 2016

RNI NO. DELENG/2006/16897, POSTAL REG NO. DL(E) 01/5294/2015-17, PUBLICATION DATE: 1ST OF EVERY MONTH, POSTING DATE: 8-9TH EVERY MONTH