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THeSE AIR INDIA PILOTS AND THEIR FLYING HOURS

Pg 20

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FINALLY, KERALA HAS ITS WAY Upset with the treatment meted out to Keralites, the state gets ready to launch its own airline

JANUARY 2013 I `90

ENGINE-MAKERS BATTLE IT OUT Will CFM's B737Max engine prove to be more popular than the P&W engine on the A320Neo?

well, NO ONE'S

AFRAID OF 2013

The year gone by was a nightmare that the country's civil aviation stakeholders wanted to end. Now that the curtain has come down, the new year brings hope and promise that a select group of India's civil aviation bigwigs are ready to share with Cruising Heights.

editor-in-chief's note

012 hasnâ&#x20AC;&#x2122;t been a pretty year for InK Srinivasan dian Aviation. Hopefully 2013 will be much better. The modernisation programme of the metro airports will be completed when the new terminals at Chennai and Kolkata airports are inaugurated. Hopefully, Kingfisher will get off the ground and Air India will get better and better. And we hope that private enterprise â&#x20AC;&#x201D; be

Cruising Heights January 2013

it airports or airlines will find some just rewards for all their investments and hard work. Most of all, a fervent wish that flights will be cheaper and more people can fly! Seasonâ&#x20AC;&#x2122;s greetings and have a great year!

srini@newsline.in

British Airways has started a new chapter in the field of bio-fuel sustainability when it unveiled the state-ofthe-art sustainable jet fuel facility in London. The facility provides a platform for the airline’s efforts to assure carbon neutral growth from 2020. BA has teamed up with Solena, zero-emission bioenergy company, to produce sustainable jet fuel as part of their GreenSky London partnership, The carrier has invested $500 million in the project and the fuel — to be produced over the next 10 years — will be used in all BA flights operating out of London City Airport. President and CEO of Solena, Robert Do, said: “Our GreenSky London project will provide clean, sustainable fuels at market competitive prices that will help address British Airways’ sustainability goals. The British Airways off-take agreement represents the largest advanced biofuel commitment ever made by an airline and clearly demonstrates the airline’s leadership and vision in achieving its carbon emission reduction targets." Once built, the facility is expected to annually convert approximately 500,000 tonnes of residual waste into 50,000 tonnes of jet fuel, 50,000 tonnes of biodiesel, as well as bionaphtha (a blending component in petrol), and renewable power. Jonathon Counsell, British Airways’ Head of Environment, told Business Green that by 2015 the plant could account for two per cent of British Airways’ fuel and produce the green fuel at a similar price to fossil fuels. “Biofuels are the only low carbon option to fossil fuels in the aviation sector and as a result GreenSky London Initiative is likely to be the first of many similar projects built in the years to come,” he said. “Every new market needs a groundbreaker and it is pleasing to see the UK take a leading role in its development.” BA incidentally is not the only airline to produce bio-fuel. It has joined the league of other airlines keen on biofuels: United, Continental, Alaska, US Navy and KLM.

contents

countering 2013

p30

The agenda for aviation in 2013 is all set to roll. Cruising Heights pieces together the priorities and the wishlists of decision-makers in the Indian aviation industry to find out what 2013 holds for them and for the industry. All are upbeat and ready to take on the challenges that the year will throw up for the sector.

H C Tiwari

Future fuel

H C Tiwari

Off the cuff

cover story

news digest

p20

Air India is again caught in a controversy as the Delhi High Court refused to stay the orders extending the new Flight Duty Time Limitation to Air India pilots. Plus Air India Express woes and more.

Cruising Heights January 2013

Business Aviation

p47

Aircraft maintenance and overhaul is not a top-draw business but the 60-year-old Mumbai-based Air Works Engineering, is leveraging its competence by broadening its activities and demographic reach.

contents

cover story

articles news views edits interviews clippings profiles news digest

cargo

Cruising Heights

p58

Volume VII n No 8

Lufthansa Group recently locked one of the largest IT system deals with Indian company IBS giving a big boost to the Indian IT industry. IBS' new generation iCargo system could well turn out to be the tool that air cargo managers look out for.

Editor-in-Chief

K SRINIVASAN Managing Editor

TIRTHANKAR GHOSH Group Consulting Editor

R KRISHNAN Consulting Editor

Nandu manjeshwar

net express

p51 snippets

A recent IATA-commissioned report has stated that airline ticket sales will be largely dominated by the e-commerce category and India's online travel industry will take a big bite from it. It also emphasised that online travel bookings will be conducted by those who own smartphones and tablet devices.

p68

IndiGo launches its 14th daily non-stop flight on the Mumbai-Delhi-Mumbai route while Air India goes live with Ramco Aviation. In the travel section, Sofitel Luxury plans 150 hotels by 2015.

Senior Sub-Editor-cum-Reporter

punit mishra Chief Visualiser

ajay negi Designers

modassar nehal, Mohit kansal nagender dubey, chanderjeet Design Consultant

artworks Picture Editor

Pradeep chandra Photo Editor

HC Tiwari Staff Photographer

hemant rawat Director (Admin & Corporate Affairs)

Rajiv Singh Director (Marketing)

Rakesh gera Manager (PR) l2.yimg.com

Ashutosh Mishra Sr. Executive (Coordination)

Alka goswami Subscription

Aero engines

p43 BACK PAGE

Call it Neo vs Max or the 'Battle of the engines', where the big question is â&#x20AC;&#x201D; which company's engine will be more fuel-efficient and better in terms of performance â&#x20AC;&#x201D; P&W's A320 Neo's or CFM's B737 Max's .

p74

Four decades later, after a long and remarkable journey, Falcon continues to enrich its legacy. Last autumn, the Falcon 20 became the first civil jet to fly using biofuel. THESE AIR INDIA PILOTS AND THEIR FLYING HOURS

Pg 20

CRUISING HEIGHTS www.cruisingheights.in

FINALLY, KERALA HAS ITS WAY Upset with the treatment meted out to Keralites, the state gets ready to launch its own airline

JANUARY 2013 I `90

ENGINE-MAKERS BATTLE IT OUT Will CFM's B737Max engine prove to be more popular than the P&W engine on the A320Neo?

WELL, NO ONE'S

AFRAID OF 2013

cover design:

artworks

The total number of pages in this issue: 72+4

Cruising Heights January 2013

Ashna Pandit, Charu Sharma (9650433044) Executive Director

renu mittal For advertising and sales enquiries, please contact:

+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 Nutech Photolithographers, B-240, Okhla Industrial Area, Phase- I, New Delhi-110020.

“ periscope

Examining fallacies “We require more staff at DGCA for examining flight safety and other training requirements.” Arun Mishra, Director General of Civil Aviation on the manpower crunch DGCA is facing

A big deal “We are in continuous dialogue with Star Alliance and joining the Alliance is in our interest.” Rohit Nandan, Air India CMD on the future possibility of Air India joining Star Alliance

letters to editor

The cover story United only in name (December 2012) was written in the right perspective. The three Middle Eastern carriers — Qatar, Emirates and Etihad — have indeed restricted the grip of airline alliances to a large extent as the story illustrated. One of the fatal defects of the alliance concept which the paper Aviation at the Crossroads — Safeguarding Competition and Consumer Choice explains is that the emergence of the three mega-alliances presents public policy concerns that merit careful attention. This has sparked off a very dangerous trend on the part of the three airline alliances and needs to be examined. Saira Khan, Surat

Air India on revival path (December 2012) was interesting to read. It was heartening to know that the State-owned carrier Air India which has been plagued by controversy and criticism is on the revival path. Committees and revival plans have become order of the day for this ailing carrier. The airline’s latest revival plan might spell good days for the ailing carrier as the story suggested. Despite the fact that Air India is putting in more capital and bringing in modern aircraft of comfort, as long the archaic and stubborn service mentality of the employees are not totally eradicated, Air India can't survive. Ram Juneja, Amritsar

‘FedEx India operations will continue to grow’ (December 2012) unveiled the future plans of FedEx in India. The freighter operations of FedEx in the country has grown manifold over the years. FedEx has been beefing up its operations and growing leaps and bounds. The express cargo industry in the country offers a lot of promise for FedEx and I am sure the international express major will gain a big foothold because of its high class service. It has made its mark as one of the largest express transportation companies in the world and I am certain it will do well in India. Kishore Dutt, Bhopal

Green talk “Commercial flights on sustainable alternative fuels are now a reality. Airlines are using drop-in biofuels that do not require changes to aircraft design or fuel delivery systems.” Roberto Kobeh González, ICAO Council President on the practical feasibility of biofuels

Exuding confidence “In an uncertain world, the MiddleEast is one of the 'strong pockets' for growth in aviation.” James Hogan, Etihad Airways' President-CEO on the dominance of Middle-Eastern carriers

De-regulatory measures “No, we are not going to regulate airfares. What we are trying to do is make the system for deciding the fares transparent.” Ajit Singh, Civil Aviation Minister on the regulation of airfares

All correspondence may be addressed to Editor, Cruising Heights, D-11 Basement, Nizamuddin (East), New Delhi -13, OR mail to cruisingheights@newsline.in

Cruising Heights January 2013

No holds barred “Aviation sector is somewhat like telecom. It is proliferated by many operators some of them in financial trouble.” Ratan Tata, former Tata Sons' Chairman on why he was unwilling to enter the Indian aviation market

The next time you are at an airport, take a look at the restaurants. Airport restaurants are fast changing the dynamics of culinary innovation all around the world. A popular website for foodies, dailymeal.com, has come out with a list of top 10 airport restaurants in the world. The top airport restaurant on the list was Barcelona's Porta Gaig in El Prat's Terminal 1, which dishes out traditional Spanish delicacies by Michelin-starred Chef Charles Gaig. In third place was Chicago's O'Hare Airport with its Mexican restaurant Tortas Frontera, where diners can enjoy fresh, meat-filled sandwiches. The only non-American restaurant in the top 10 list was Bubbles Seafood and Wine Bar at Amsterdam's Schiphol Airport, where Dutch favourite raw herring with fresh bread and onions is served.

The top 10 airport eateries were: 1. Porta Gaig, El Prat del Llobregat Airport, Spain 2. Salt Lick BBQ, Austin-Bergstrom International Airport, US 3. Tortas Frontera, O'Hare International Airport, US 4. Bubbles Seafood and Wine Bar, Schiphol Airport, Netherlands 5. Obrycki's, Baltimore/Washington International Airport, US 6. Crust, LaGuardia Airport, US 7. Five Guys, Washington Dulles International Airport, US 8. Custom Burgers by Pat LaFrieda, LaGuardia Airport, US 9. Encounter Restaurant and Bar, Los Angeles International Airport, US 10. Legal Sea Foods, Logan Airport, US

cold stats

Airport restaurants in vogue

Looking glass

tanmaya tyagi

Coming in 2013... a first for the Indian aviation sector... the arrival of the Middle East Indian company.

Countering argument illustrations:tanmaya tyagi

“Sir Richard says he intends to carry on flying for many years. Is he going to be the 51 per cent owner of Virgin Atlantic in five years from now? ” Willie Walsh, British Airlines Chief on Richard Branson's statement

Clear idea “Rumours have been spread in the press that I am planning to give up control of Virgin Atlantic and, according to Willie Walsh that our brand will soon disappear." Richard Branson, Virgin boss in a blog on Delta buying a 49 per cent stake in Virgin Atlantic

Cruising Heights January 2013

traffic data

OCt-12

40 50 83.9

77.2

77.4

69.7

75.5

69.2

77.3

70.2

73.8

67.5

78.6

60 70 80

12.0

100 Air India

Jet Airways

JetLite

Spicejet

GoAir

IndiGo

17.0

90 0

Mantra 0%

Jet Airways 18.3%

GoAir 7.4%

Nov-12

74.7

Pax Load Factor (%)

IndiGo 27.3%

SpiceJet 19.5%

 PASSENGER LOAD FACTOR OF SCHEDULED DOMESTIC AIRLINES 10

 MARKET SHARE OF SCHEDULED DOMESTIC AIRLINES

.9% ite 6

riod of the previous year showing a downtrend of 2.94 per cent. The break-up for the month of November 2012 is as follows: Air India - 10.38 lakh, Jet Airways - 9.17 lakh, JetKonnect - 3.45 lakh, IndiGo - 13.69 lakh, SpiceJet - 9.78 lakh, GoAir - 3.73 lakh and Mantra - 0.003 lakh. Low-cost carrier IndiGo continued with its dominance of the domestic market with a marketshare of 27.3 per cent in November. It was followed by Jet Airways and JetKonnect (25.2 per cent), Air India (20.7 per cent), SpiceJet (19.5 per cent)

JetL

s per the passenger traffic data submitted by various domestic airlines, the total domestic passengers carried by the scheduled domestic airlines in the month of November 2012 were 50.20 lakh in comparison to 45.55 lakh domestic passengers carried by the scheduled domestic airlines in the month of October 2012: an increase of 4.65 lakh more passengers in November 2012. The number of passengers carried by the domestic airlines was 534.14 lakh between January-November 2012 as against 550.33 lakh during the corresponding pe-

Mantra

and GoAir (7.4 per cent). The passenger load factor in the month of November 2012 improved mainly due to seasonal traffic. The highest passenger load factor was obtained by IndiGo at 83.9 per cent (it was 77.2 per cent in October), Air India 78.6 (domestic) per cent (October: 74.7 per cent), GoAir’s was 77.4 per cent (69.7 per cent in October), JetKonnect 77.3 per cent (October: 70.2 per cent), SpiceJet’s was 75.5 per cent (October: 69.2 per cent), Jet Airways 73.8 per cent (October:

IndiGo continues

to dominate

 capacity VS DEMAND

0.1

-7.0 -12.0

-5.9 -7.3

Jul

-0.48

0.2 Jun

-1.3 -7.7

Mar

-8.8

-0.5 -0.48

Apr May

-5 -15

5.8 -0.3

Feb

9.5

14.5 10.8

Jan

2.9

12.2 7.9

Nov Dec

3.0 2.0

11.9 6.9

16.8 11.0

Demand (RPK)

Capacity (ASK)

Aug Sep

Oct

Nov

Year over Year

-25

 ON-TIME PERFORMANCE Scheduled Domestic Airlines OTP at Six Metro Airports Air India (Dom) 67.9 GoAir SpiceJet

82.2

Jet Airways+JetKonnect

84.8

IndiGo 0.0

OTP (%)

77.4

93.0 20.0

40.0

60.0

80.0

100.0

 PASSENGER COMPLAINTS OF SCHEDULED DOMESTIC AIRLINES Air India (Dom) • Total number of complaints (Nov 2012) - 712 • Number of passenger related complaints - 1.4 per 10,000 passengers carried

67.5 per cent) and Mantra was 17 per cent (October: 12 per cent). IndiGo led the airlines in the overall on-time performance in November 2012 at six metro airports – Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad – with 93.0 per cent. The other airlines that followed were: Jet Airways and JetKonnect 84.8 per cent, SpiceJet 82.2 per cent, GoAir 77.4 per cent and Air India (Domestic) 67.9 per cent. IndiGo’s on-time performance at Bengaluru was 94.3 per cent. The carrier’s performance at Delhi was 95.4 per cent, Hyderabad (95.6 per cent), Chennai (91.4 per cent), Kolkata (98.5 per cent) and Mumbai (84.6 per cent). Jet Airways and JetKonnect’s on-time performance at Chennai was 98.7 per cent. At other’s airports it was: Kolkata ( 90.4 per cent), Hyderabad (86.6 per cent), Bengaluru (85.5 per cent). The carrier’s performance at Delhi (78.0 per cent), and Mumbai (80.5 per cent). GoAir flies to only five of the six metro airports. The carrier’s on-time performance at Kolkata was the highest at 92.6 per cent. In the other four metros, it was: Delhi (76.4 per cent), Mumbai (74.6 per cent), Bengaluru ( 76.1 per cent) and Chennai (91.7 per cent). Spicejet’s on-time performance at Kolkata was 88.6 per cent. The carrier’s performance at Hyderabad was 77.5 per cent, Delhi (79.3 per cent), Bengaluru (81.5 per cent), Mumbai (73.1 per cent) and Chennai (94.3 per cent). Air India’s on-time performance at Kolkata was 80.6 per cent. The carrier’s landings and take-offs at the other metros were: Hyderabad (76.7 per cent), Bengaluru (67.9 per cent), Delhi (67.5 per cent) and Mumbai (59.3 per cent). The number of passenger complaints recorded by scheduled domestic airlines in November 2012 was 712. The number of passenger-related complaints was 1.4 per 10,000 passengers carried. Air India-Dom (2.0) had one of the highest passenger complaint rates followed by Jet Airways (1.7), SpiceJet (1.3), JetKonnect (1.3), IndiGo (1.1) and GoAir (1.0) According to the data received by the DGCA, the overall cancellation rate of flights in November 2012 was 1.1 per cent. Leading the carriers was Mantra (13.3 per cent), Air India (domestic) 2.0 per cent, SpiceJet (1.3 per cent), GoAir (1.2 per cent), JetKonnect (0.8 per cent), Jet Airways (0.7 per cent), and IndiGo (0.3 per cent). The reasons for the cancellations: miscellaneous (20.9 per cent), technical (40.6 per cent), operational (4.2 per cent), weather (10.8 per cent) and commercial (23.5 per cent). n

Jet Airways Spicejet JetLite IndiGo Go Air 0.0

Mantra

0.0

0.5

1.0 1.5 No. of Complaints/10,000 Pax

Cruising Heights January 2013

2.0

2.5

news digest

Shenzhen Airlines joins Star Alliance “Shenzhen Airlines is China's fifth largest carrier and strengthens the Star Alliance presence in China and across Asia. Our customers now benefit from improved access throughout the economically important Pearl River Delta and across southern China. Shenzhen Airlines at the

same time gains access to a global network with enhanced benefits for its passengers; truly a win-win situation.” That was Mark Schwab, CEO, Star Alliance, welcoming Shenzhen Airlines into the Star family at a ceremony held at Shenzhen Bao'an International Airport.

Star has a new Chairman

More stars for Heathrow

Calin Rovinescu, President and by Fyfe. “We have all benefitted Chief Executive Officer of Air from Rob’s presence as ChairCanada, was elected as the new man of the CEB,” he said. “ Chairman of the Star Alliance Rovinescu said he was lookChief Executive Board (CEB). He ing forward to working with the succeeded Rob Fyfe, CEO, Air board over the next two years to New Zealand, who held the post deepen the alliance and pursue for the last two years. shared priorities. These would In his role as CEB Chairman, include strengthening the global Calin Rovinescu Rovinescu will conduct the two network, focussing on providing annual board meetings and act as the desa seamless travel experience and mainignated spokesperson for the board. While taining the loyalty of customers through taking over, he pointed out the work done superior service and convenience.

‘oneworld is best alliance’ Global Traveler recently named oneworld as the ‘Best Airline Alliance’ in the magazine's GT Tested Reader Survey 2012 Awards. oneworld also retained ‘Global Traveler's Wines on the Wing’ award as the alliance whose airlines serve the best wines in-flight. Global Traveler Publisher and CEO Francis X Gallagher said that it was no surprise to see the alliance continu-

Feng Gang, President of Shenzhen Airlines, informed that the entry had come after 16 months of integration work. “We know that today no single airline alone can tend to the needs of the international traveller. By joining Star Alliance we can now offer our customers global reach, while at the same time placing Shenzhen firmly on the map of worldwide air travel,” he said. With the formal entry of the carrier into Star, Shenzhen Airport became the newest Star Alliance hub. As a Star Alliance member, Shenzhen Airlines will offer its customers access to a global network, along with seamless travel and enhanced frequent flyer benefits. The airline adds some 400 daily flights to 70 destinations to the Star Alliance network. Among these are five new destinations in China: Juzhou (Zhejiang Province), Linyi, Qinhuangdao, Shijiazhuang, and Zhoushan. In addition to improving connectivity from its home base in Shenzhen, international passengers will benefit from a wider choice of transfer flights in China when connection via the international airports in Beijing, Guangzhou and Shanghai-Pudong.

ally ranking at the top when one looked at oneworld's member airlines, most of them award-winning airlines themselves. “Service and quality are synonymous with the alliance and the member airlines,” he said. oneworld has always aimed to be the first choice airline alliance for international business travellers, emphasized oneworld Vice-President Commercial Stephen Usery. Cruising Heights January 2013

Heathrow Airport recently designated Terminal 2 as the new home for the Star Alliance’s member carriers serving one of the world’s most important international airports. “We are delighted by today’s decision, which gives the green light for creating a new travel experience for our customers and allows our members airlines to operate an efficient hub in London,” said Mark Schwab, CEO, Star Alliance. “After many years of intensive planning for a world leading alliance terminal together with Colin Matthew's team at Heathrow, we can now shift into implementation mode.” The latest technology as well as integrated facilities and aligned processes among the member carriers will contribute to significantly improve the traveller’s experience.

news digest

Codeshare Jet joins hands with ANA Round-the-world fare, courtesy WestJet WestJet is now participating in the Global Explorer round-the-world fare offered by all member airlines of the oneworld alliance and selected other carriers. WestJet's network of more than 80 destinations in North America, Central America and the Caribbean is now featured as part of Global Explorer, which is one of the most popular round-the-world fares available globally. WestJet's addition to Global Explorer brings on board almost 25 additional airports in Canada to the map served by

Global Explorer. The round-the-world fare also covers all routes offered by oneworld's existing member airlines – airberlin, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Qantas, Royal Jordanian and Russia's S7 plus some 30 affiliated carriers, including Austria's Niki, OpenSkies, South Africa's Comair, Denmark's SUN-AIR, Iberia Express, Iberia Regional Air Nostrum, LAN Argentina, LAN Ecuador, LAN Peru, and QantasLink.

SkyTeam welcomes Xiamen Airlines

SkyTeam recently welcomed China’s Xiamen Airlines as its 19th member. Xiamen Airlines is also the fourth member from Greater China. The airline strengthens SkyTeam’s footprint in China and its overall number one position in the Greater China region by adding three new hubs –

Xiamen, Fuzhou and Hangzhou – combined with a comprehensive domestic and growing international network. SkyTeam membership offers Xiamen Airlines’ customers greater connectivity onto international routes from China operated by other alliance members. This includes carriers from the region: China Airlines, China Eastern and China Southern, and nine additional SkyTeam airlines: Aeroméxico, Aeroflot, Air France, Alitalia, Delta, Kenya Airways, KLM, Korean Air and Vietnam Airlines. “By joining SkyTeam, Xiamen Airlines opens up the world to its passengers. And today we also strengthen SkyTeam’s footprint in China,” said Michael Wisbrun, SkyTeam’s Managing Director.

Game for 1,000 destinations?

SkyTeam recently reached a total of 1,000 destinations on its global route map. The alliance and its 19 members now offer customers a combined worldwide network

that has grown by 17 per cent over two years. SkyTeam is challenging its 165,000 Facebook fans to put their travel knowledge to the test in a new ‘Destination Challenge’ game to celebrate the occasion. Available via SkyTeam’s Facebook page, the game gives globetrotters 30 seconds to correctly guess a series of three-letter airport codes that are served by SkyTeam. Scores can then be posted on competitors’ walls, inviting their friends to see if they can do better. There is no limit to the number of times the game can be played and airport codes are selected at random each time. Cruising Heights January 2013

Jet Airways stated that it has expanded its code-share arrangement with Japan's All Nippon Airways. The arrangement will enable both Jet and All Nippon passengers to fly between Tokyo and Osaka to various points across India on connecting flights operated by both carriers. In addition to the existing code-share on Japanese carrier's Mumbai-Tokyo direct flights,

Jet Airways will place its marketing code on other All Nippon flights between Hong Kong-Tokyo/Osaka and Bangkok-Tokyo. Commenting on the agreement, Jet Airways’ Chief Executive Nikos Kardassis said, “Our code-share agreement with All Nippon Airways is another distinctive travel solution. Thanks to the expanded codeshare agreement, we will be able to offer our guests wider access, unmatched connectivity and seamless travel to Japan's key markets”.

Air Canada-Turkish unveils codeshare Air Canada and Turkish Airlines recently jointly announced a reciprocal codesharing agreement that will make it easy and convenient for customers to connect between the two Star Alliance partner airlines. Under the codeshare agreement, the two carriers will each place their flight designator code on select flights making it more convenient for travellers with such benefits as a single itinerary, through-checked bags and mutual status recognition. The agreement will include Air Canada’s code on Turkish Airlines' Toronto-Istanbul flight and several destinations beyond Istanbul, not only in Turkey but also in the Middle-East and Africa. Turkish Airlines will also codeshare on Air Canada’s service between Toronto and Istanbul providing connections to domestic Canada and several points from Toronto to US destinations.

news digest

Aircraft sales:$100 bn finance predicted First new jet for Iraq in decades Iraq’s first jetliner from Boeing landed in Baghdad in the middle of December last year ending a 30-year lull in the country’s aviation history. Iraq is attempting to recover after decades of economic instability resulting from war and international sanctions. The twin-aisle 777-200LR Boeing aircraft was delivered within two weeks of the company's chief rival Airbus announcement of the delivery

of a wide-bodied plane to the country. “The arrival of this plane represents a big chance for Iraqi Airways to turn around,’’ said Iraqi Transportation Minister Hadi al-Amiri. The current order has been followed by a demand of 30 of Boeing's smaller 737-800 model and 10 of its new 787s. The Chicago-based aircraft manufacturer has said that the first of the 737s is set to be delivered by the middle of next year.

787 has electrical issues After it was required to replace some of the electrical parts on at least four of its aircrafts, Boeing has launched an investigation into the electrical glitches on its new 787 Dreamliner. The action was necessitated following the emergency landing of a Dreamliner belonging to United Airlines (UA) in December last year. An airliner belonging to Qatar Airways was also

grounded for electrical problems. The UA aircraft delivered in October 2012 has been taken out of service in order to work on the power panel and generator. A fourth aircraft belonging to the series underwent a replacement to the power panel after a test flight at its Everett factory in Washington. The plane was due to be delivered to Qatar Airways.

Boeing has predicted an unprecedented increase in the value of aircraft sales to $104 billion with a rise of around 9.5 per cent projected for 2013. The forecast made by the aircraft manufacturer was based on its belief that buyers of commercial jets would be inclined to draw higher financing from capital markets based on the current estimates. In an annual forecast, Boeing stated that the capital markets will make up for about 14 per cent of the total financing for jets which would a 10 per cent hike from the previous year. Boeing and Airbus are expected to share almost 95 per cent of the total figure. The report also stated that, at present, credit markets are compensating for the diminished lending by exportcredit agencies, which was expected to finance about 23 per cent of the total sales this year. This figure is much lower than the 30 per cent achieved by the agencies last year.

ATR ready for 90-seater project

ATR has received a positive response from clients who have shown a keen interest in the 90-seat turboprop project. At present, it is waiting for the consent of company’s shareholders, EADS and Alenia Aermacchi, to start. “We’ve finished our major part of the work, and now the ball is in the camp of the shareholders,” ATR Chief Executive, Filippo Bagnato said at the inauguration of its training facility in Singapore. He added that the turboprop manufacturer had done work on a feasibility study “in order to be ready as soon as shareholders give the go-ahead”. Lion Air’s President Director Rusdi Kirana, whose regional subsidiary Wings Air will be the largest ATR operator, said that he was “definitely interested” in the larger turboprop as it would be “more economical”.

First A350 flight in 2013? Airbus’s Chief Executive Fabrice Bregier has said that the goal to hold the first flight for the future A350 commercial aircraft in mid 2013 is “not easy, but reachable”. Bregier said the first A350 aircraft was already assembled and the engines, made by Rolls-Royce were being tested though the calendar is ‘tight’. Way back in July, A350 Programme Head Didier Evrard had also mentioned that the first A350-900 would fly before mid-2013. Cruising Heights January 2013

news digest

Mitsubishi to hike RJ production

Mitsubishi Aircraft is mulling increasing its projected production rate of its regional jets to meet its customers’ demands. Hiroki Sakurai, Deputy General Manager of Public Relations for the airframer has said that once the first aircraft is delivered in 2015, Mitsubishi Aircraft will be able to produce five planes a month. He further added, “Five aircraft delivery per month is our initial plan, however, the market demand is far beyond our expectation. For the aircraft production ramp up, we’re still considering how to strengthen the production line to increase our production rate.” The airframer has calculated that it needs to produce 10 aircraft every month in order to cater the demand. The assembly of the MRJ70 and MRJ90 aircraft will take place at Mitsubishi Heavy Industries’ Komaki South plant close to the Nagoya Komaki airport.

E U E T S 16

Africa needs 900 new airliners Van Rex Gallard, Boeing’s Vice President of Sales said that Africa would need 900 new airliners by 2031. “In North Africa they have had some issues because of the Arab Spring and so forth. But it (growth) is coming up, it is going to continue in countries such as Algeria, Egypt, Morocco,” Gallard said in Johannesburg. “There is a solid infrastructure in those countries. They actually have access to financing and they

are technologically prepared to be competitive, with mainly Europe,” he added. Gallard was also optimistic about growth in East Africa. He believed that it was also booming, with major players in the aviation industry from Ethiopia, Kenya and Rwanda. He said, “Ethiopian Airlines is the second country in the world which has taken delivery of the (Boeing) 787, after the Japanese.”

DVB says ‘no’ to Indian planes DVB Bank SE (DVB), one of the biggest financiers for Indian aircraft, has suspended all financing to Indian carriers after the DGCA failed to deregister two airliners following their repossession from Kingfisher Airlines.

An emailed statement issued by the bank stated that after terminating the leases on two Airbus A320s from Kingfisher in 2012, it had repossessed the aircraft. However, according to DVB’s managing director, Bertrand Grabowski, they have still not received the required documentation to authorize reassigning the planes. He said, “Until we have the planes deregistered, we can’t redeploy the airplanes and that means a loss for DVB.” Financing in the Indian market is suspended until further notice, he added. In an earlier email statement Grabowski had said that holding security over an aircraft registered in India “does not provide acceptable protection to owner and mortagees.”

EU postponement brings relief In the face of strong opposition from around the world, the European Union Emissions Trading Scheme (EU ETS), that would require foreign airlines to pay for carbon emissions on flights to and from Europe, was pushed back by a year. However, European Commissioner for Climate Action, Connie Hedegaard provided a different reason for the postponement. “The EU has always been very clear: nobody wants an international framework tackling CO2 emissions from aviation more than we do. Our EU legislation is not standing in the way of this. On the contrary, our regulatory scheme was adopted after having waited many years for ICAO

to progress.’’ She went on to say that “very good news came from the ICAO Council. I've just recommended in a telephone conference with the 27 Member States that the EU ‘stops the clock’ when it comes to enforcement of the inclusion of aviation in the EU ETS to and from non-European countries until after the ICAO General Assembly next autumn”. She did not, however, hesitate to warn that “if this exercise does not deliver — and I hope it does — then needless to say we are back to where we are today with the EU ETS. Automatically.” Connie Hedegaard

Cruising Heights January 2013

No case for Gatwick expansion

EXPERTSPEAK Bisignani spells out end of Heathrow

IAG chief Willie Walsh told British Members of Parliament that airlines would pay for expansion only at one UK airport. The statement was directed towards the demands of Gatwick for a second runway. He added that there was no business rationale for Gatwick airport, for another runway. He said that he was not aware of “consultation with airlines

for the significant capital expenditure and the additional operating charges to pay for that investment, or to see if the airlines actually want a second runway and how they propose to fund it”. He was categorical, however, that “the decision to cancel the third (Heathrow) runway was a mistake and I believe we'll live to regret that decision”.

Former IATA CEO Giovanni Bisignani has declared that London Heathrow Airport has lost its position as Europe’s primary hub airport due to its runway capacity shortage. He had his reasons: 20 years ago, Heathrow connected to more destinations than competitors Frankfurt, Paris Charles de Gaulle and Amsterdam Schiphol. In addition, Heathrow’s connections with the Asia-Pacific were also fewer that the other hubs in Europe.

A320 sharklet certified The European Aviation Safety Agency EASA has provided certification to sharklets for A320 aircraft with CFM engines. Tom Williams, Executive Vice President Programmes, said that the cerfication of the sharklets had opened the possibility of airlines reducing costs and saving in fuel consumption amounting to almost four per cent. He said, “The annual greenhouse gas emission reduction per aircraft equipped with sharklets will be approximately 1,000 tonnes of CO2—that’s equivalent to taking 200 cars off the roads.” AirAsia has taken delivery of the very first Airbus A320 aircraft installed with the sharklet wing tips and became the first operator of the new fuel-saving large wing tip devices. The sharklet wing tips will be fitted on previously ordered, newly-built Airbus A320s for AirAsia.

SHARK OF A SAVER: Aireen Omar, CEO AirAsia Berhad, presenting an appreciation plaque to Kiran Rao (left), Airbus EVP Strategy and Future Programmes, Sales and Marketing, after receiving the world's first Airbus A320 with sharklets

To top it all, the London airport will not be able to get back its top position soon since the construction of a third runway will take at least 10 years. Bisignani was speaking in the Future of Air Transport Conference in London.

ICAO under pressure

US moves to block EU ETS

ICAO’s task of developing a global framework for limiting aviation CO2 emissions will likely be difficult and time consuming. Reaching consensus on a methodology among ICAO’s 191 member states will be challenging in itself. Timing also will be significant; while draft plans could be under informal consideration as early as next spring, the full ICAO assembly does not meet until autumn 2013 and, a final agreement at that point could still take several months (even years) before a final scheme is agreed and implemented worldwide. The longer ICAO members take to come to a consensus, the more the pressure by the EU to enforce the ETS in its present form in autumn 2013.

If the ICAO fails in its efforts, there could be pressure on US President Barack Obama from US-based aviation industry groups to start dispute resolution proceedings against the EU under Article 84 of the Chicago Convention, seeking a verdict that the EU ETS violates the Chicago Convention. On his part, President Obama signed a bill—notwithstanding the fact that the EU had stopped the implementation of the EU ETS—protecting US airlines from paying the emission charges for flying into and out of Europe. The bill provided the American Transportation Secretary the power to shelter US airlines from ETS. Barack Obama

Cruising Heights January 2013

news digest

$136

million flight academy

uthep ing

d Ad

ers

mb nu

3.6

billion fliers in 2016

The International Air Transport Association (IATA) released an industry traffic forecast showing that airlines expect to welcome some 3.6 billion passengers in 2016. That’s about 800 million more than the 2.8 billion passengers carried by airlines in 2011. These figures were revealed in the IATA Airline Industry Forecast 20122016. The industry consensus outlook for system-wide passenger growth sees passenger numbers expanding by an average

There were 65 incidents of near misses in the last three years and some of them occurred

`329

crore debt by KFA

of 5.3 per cent per annum between 2012 and 2016.

incidents of airprox reported

when air traffic was being handled by trainee controllers. “There were a total of 65 airprox reported during the last three years,” Civil Aviation Minister Ajit Singh informed the Lok Sabha recently. The minister stated probes had found that the clashes

Emirates Airline recently unveiled a new $136m flight training academy intended for Dubai – is set for completion in 2014. The Academy, to be located at Dubai World Central Airport, will act as the dedicated training centre for Emirates’ National Cadet Pilot Programme. The $136m investment by Emirates will cover the construction of the facilities, maintenance equipment, training aircraft and simulators to ensure the Academy is state-of-the art, the statement added.

Adel Al Redha, Emirates Executive Vice-president of Engineering and Operations said, “The aviation industry is growing at an exponential rate and the need for professional pilots is crucial. Emirates are committed to meeting that demand through training our own UAE National Cadets at the state-of-theart Emirates Flight Academy.” He added, “With the predicted need for thousands of commercial pilots over the next decade, the launch of the Emirates Flight Academy is another example of Emirates’ leading position and commitment to the future of aviation in the UAE.”

took place due to different reasons including failure of radar and other navigational aids, coordination issues and human error on the part of Air Traffic Control and pilots. “Some airprox occurred when traffic was handled by a trainee controller during his on-thejob training albeit under the supervision of an instructor. The instructor was late in taking over or did not correct the conflicting situation in time,” Singh said. Cruising Heights January 2013

Reports have come into view that country’s tax departments have moved to Supreme Court to recover dues worth `329 crore Vijay Mallya from cashstrapped Kingfisher Airlines. This happened exactly after Kingfisher Airlines got an eviction notice from the Mumbai International Airport Pvt Limited (MIAL) to evacuate the premium space subjugated by the airline at Terminal IA According to a CNBC-TV18 exclusive, both the Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) may jointly file a special leave petition against the airline in the Supreme Court. While the debt-laden Kingfisher Airlines owes the Income Tax department around `269 crore, it owes the Service Tax Department another `60 crore.

500

in the world

jobs on the line

Tony Tyler

The International Air Transport Association (IATA) said in its recent air traffic forecast report that India will become the fourth largest passenger airline market in the world by 2016, behind only the US, China and Brazil. By 2016, the five largest markets for domestic passengers will be the US (710.2 million), China (415 million), Brazil (118.9 million), India (107.2 million) and Japan (93.2 million), it said. “Despite the current economic uncertainty, expected demand for connectivity remains strong. That’s good news for the global economy. Growing air transport links generate jobs and underpin economic growth in all economies,” said Tony Tyler, IATA’s director general and CEO. “But exploiting these will require governments to recognize aviation’s value with policies that do not stifle innovation, tax regimes that do not punish success and investments to enable infrastructure to keep up with growth.”

$500

Air France is in the process of giving voluntary redundancy package to 500-600 cabin crew by 2014. Air France which is having a Transform 2015 restructuring programme, said its excess staff count is proving more substantial and long-term than it originally thought. “Air France confirms that without adequate measures, there would be an excess cabin

800

crew staff count of 500 to 600, all networks and grades combined, beyond 2014,” the airline said in a statement. While Air France CEO Alexandre de Juniac said, “In line with what has been negotiated with the pilots and ground staff and in keeping with the equity principle underpinning the philosophy of the Transform 2015 plan, one of the compensatory measures on signing an agreement could be incentives for voluntary departure.”

airports in Brazil

Brazilian President Dilma Rousseff said that her country would construct about 800 regional airports and open more regional air routes to give a boost to transportation infrastructure. “Some people in Brazil can travel only by air. We want cities of more than 100,000

Dilma Rousseff

inhabitants to have an airport within 60 kilometres,” she said at a recent business seminar in Paris. The President added that Brazil would also invest more in the building of railways and seaports since only aviation would not help in improving connectivity.

million loss, courtesy Sandy

The International Air Transport Association (IATA) recently unveiled that worldwide airline passenger traffic went down in October 2012 as a result of the impact of Hurricane Sandy in North America. The association projected that the outcome cost the airline industry $0.5 billion in lost revenues globally. “Slowing world trade and weak business confidence are affecting demand for air travel,

while Hurricane Sandy delivered a concentrated punch to US domestic and North Atlantic travel. And its impact was felt globally,” said Tony Tyler, IATA’s Director General and CEO. Tyler added, “The human toll and physical destruction of Hurricane Sandy remain foremost in our minds. It also dealt the airline industry a $0.5 billion blow at a time when it can least afford it. At the same time, the disruption of thousands of flights demonstrated just how connected the aviation industry has made the world.”

Cruising Heights January 2013

news digest

AI pilots and the question

of flying time

will be affected,” noted the judge. Soon afterwards, Minister Ajit Singh directed the Air India management to implement the new FDTL. The ICPA with 600 members wrote a letter to the General Manager Operations in charge of Airbus flights stating that they were operating the flights under protest and without prejudice to their rights. The pilots said they were not aware of the norms and regulations of the new scheme. The ICPA’s statement noted: “In these circumstances any inadvertent violation on the part of its pilots of the applicable norms and regulations would be entirely at

the risk and expense of the management.” The ICPA followed that off with a legal notice to the Chairman and Managing Director of Air India, Rohit Nandan, asking him not to “unilaterally alter the FDTL without consulting the unions as the prevailing norms were governed by an agreement between the pilots and the management with the DGCA also extending its nod to it”. In the legal notice, the ICPA had pointed out that FDTL was an integral part of their service conditions. With the settlement in 1993, the FDTL terms applicable to ICPA had been revised regularly — first in 2001 and again in 2006. The agreements

Voicing concerns: A file picture showing Air India pilots demonstrating during the recent strike

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he Delhi High Court has refused to stay the orders issued by the Minister of Civil Aviation Ajit Singh in September 2012 extending the new Flight Duty Time Limitation (FDTL) to Air India pilots (largely domestic), stating that it was the duty of the pilots and cabin crew to enable Air India to pull through its financial crisis. The Delhi High Court action came on November 28, 2012 in response to a petition filed by the Indian Commercial Pilots Association (ICPA), a pilots union belonging to the erstwhile Indian Airlines now Air India (Domestic). Said Justice Suresh Kait, “Since the respondent airlines is going through a serious financial crisis, it becomes the duty of each and every person who is part and parcel of the institution to work as per the established industry practices to enable the respondent airlines to pull through from its present position”. The court said it was not inclined to stay the operation of the impugned order and added that the Director General Civil Aviation (DGCA) and other authorities had the power to increase the FDTL as per the Civil Aviation Requirement (CAR). The order came on the plea of pilots and cabin crew members of Air India alleging that the Civil Aviation Minister and the DGCA had arbitrarily changed the FDTL which were governed by Aircraft Rules along with the memorandum of settlement agreed between them and the airline management in October 2008. As per the revised and now implemented DGCA guidelines, the FDTL and Flight Time Limitation (FTL) which deals with actual hours spent in flying an aircraft was 11 and 9 hours, respectively. However, as per the agreement between the union and the airline management, the FDTL and FTL was fixed at 9.5 hours and 6.5 hours. Justice Kait observed, “I am of the considered opinion that the respondents have the power to increase the hours as per CAR 1997 with the condition that the rest period at base shall be proprate, increased by twice the amount of extended period of flight duty time. If rest was given to the cabin crew then neither the health of the cabin crew nor the safety of the passengers

Cruising Heights January 2013

cdjlawjournal.com

were further continued average utilization by virtue of the docuof pilots in Air India ments of merger in 2007, being limited and the particularly the scheme ministerial direction of amalgamation which would lead to optimal provided that pilots utilisation of pilots would not be subject to and cabin crew. In conditions less favourfact, it would actually able to those existing at reduce the requirethat point of time. The ment of pilots and ICPA noted that grave cabin crew for a given injustice had been done number of aircraft. A to it by way of the prostatement issued by posed action. It said all the Ministry of Civil the settlements were in Aviation then noted the knowledge of both that implementation the company and the of the FDTL guideJustice Suresh Kait DGCA and hence no lines would result in unilateral alteration was sparing a significant permissible. In September 2012, Air India number of pilots and cabin crew for the was asked to immediately implement the additional aircraft that Air India was going guidelines of DGCA and CAR on FDTL to acquire up to 2015. for its pilots and cabin crew members. Ajit Cruising Heights believes there is Singh had got a study done of the actual some kind of grey area. For instance, there situation or utilization of pilots and cabin is no proposal for Air India (Domestic) to crew and what had been ordained by the acquire more narrow body aircraft which is DGCA in terms of FDTL guidelines. The its mainstay. The only other airline which non-implementation of the guideline saw uses narrow body is Air India Express.

hemant rawat

Cruising Heights January 2013

That leaves Air India International which has all wide body aircraft that includes eight Boeing 777-200 LRs, 12 Boeing 777300 ERs and 27 Boeing 787 Dreamliners apart from some Boeing 747-800s. The Air India management has been struggling to dispose off five of its Boeing 777-200 LRs. So far three B 787s have arrived and another four should join soon or might have joined by the time this copy reaches your hand. Air India has also postponed to a future date the acquisition of three more Boeing 777-300 ERs. None of these wide body aircraft have really been a problem for the management in terms of FDTL as it has become for pilots involved in the domestic operations with narrow bodies. The Ministry of Civil Aviation engaged an expert body to analyse the pilot utilization in Air India and found in the case of pilots engaged in domestic operations (including, perhaps, some nearby foreign locations like the Gulf and South East Asia) scored lower on five of the six parameters. It was only on the ‘rest period’ that it was in tune with the DGCA guidelines on FDTL. Incidentally, FDTL deals with six parameters that include maximum daily flight duty period, maximum daily flight time, weekly/monthly/annual limitation of flying hours, rest period, staff on duty travel or position and number of landings. While the DGCA guideline on FDTL stipulates that pilots could fly 1000 hours in a year or 365 days, the ICPA-management agreement FDTL allows a pilot to fly up to 960 hours in 365 days. The Ministry has stated that the ministerial directive was in line with the recommendations made by the Justice Dharmadikari Committee in its report which is under government’s consideration and being implemented. This committee, among other things, had strongly recommended that pilots had to abide by their licensing conditions and also aviation rules in the matter of actual flying hours and the lay-off period, particularly with reference to the mandatory FDTL and FTL regulations. The average utilisation of pilots of Air India was actually lower and the direction to Air India to follow the DGCA/CAR guidelines on FDTL would lead to optimum utilization of pilots and cabin crew members and help reduce the number of pilots and cabin crew required for a given number of aircraft. This means the new system would result in sparing significant number of aircraft, pilots and cabin crew during an yearly cycle of 1000 hours. If we take an extreme case, and go by ICPA’S stipulation of 960 hours vis-ávis 1000 hours by DGCA, it would mean a spare 40 hours for each pilot and if we multiply that by the 600 members of ICPA,

news digest

ABOVE GROUND LEVEL  Departure slots to be auctioned

The Civil Aviation Ministry is planning to auction departure slots at congested airports. The auction will be undertaken on an experimental basis. Departure slots are allocated by the respective airport operators: Airports Authority of India (AAI) in case of airports handled by it and JV operators for airports managed by them in accordance with the guidelines issued by the Ministry of Civil Aviation and in line with IATA World Slot Guidelines (WSG).

pib

seeking solutions: Justice (Retd.) D M Dharmadhikari presenting the report on Air India HR issues to the Minister for Civil Aviation, Ajit Singh, in New Delhi in early 2012

FLYING HIGH: An inside view of T3 terminal at Delhi International Airport

“To ensure the most efficient use of airport infrastructure and in order to maximise benefits to the greatest number of airport users, it is felt essential to have a policy for allocation of constrained or limited airport capacity to airlines and other aircraft operators through a transparent and equitable mechanism so as to ensure viable airport and air transport operations,” said a PIB release.

AAI backs multi-modal hub

A multi-modal hub at the Trivandrum international airport recently got the thumbs-up from AAI. The suggestion if carried out will make the airport the only one in its category to have access to all five modes of transport. “The propensity of the airport to become the only airport in its category, having all S Raheja five modes of

it means an additional 24000 hours a year. If we divide this figure by 365 days, it yields a daily 65 hours which is the time given for Pilots and Cabin Crew. Private carriers like IndiGo and Spicejet utilise aircraft for 11.5 hours to 12.5 hours which is evident from the higher utilisation of their Pilots and Cabin Crew as against the underutilisation of the same in Air India (Domestic). We understand that the Pilots of Spice/ Indigo reportedly are used for 7.5 to 8 hours as against ICPA’s own admission of 6.5 hours. Perhaps the Pilots and Cabin Crew of Air India (Domestic) may wonder at the very simplistic way of our analysis. Even if we agree with them and halve our estimate, it could mean Air India domestic narrow body aircraft could utilised for 12000 hours annually or 32 hours daily which means four of its A320s could do exclusive 8-hour flights each day. All this has been lost or being lost. We also do not know if the ‘under protest’ flight by Pilots to adhere to the new FDTL guideline has also contributed to Air India (Domestic)’s increase in market share over the last two months. At the same time we also admit that Air India has a unique problem of ‘the more it flies, the more it loses because of

its high costs and huge debt’. In a way the resort to court and its subsequent ruling should once and for all settle this vexed issue of FDTL. It may be recalled that in August 2007, the DGCA’s CAR on FDTL and FTL had raised the rest period for pilots between flights. It also meant less flying time for pilots holding managerial position, more rest period for pilots operating at night, pre-scheduled weekly offs and so on. At that time the present member of Civil Aviation Safety Advisory Council and Boeing 737 instructor Capt Mohan Ranganathan cautioned that the new guidelines would mean a need for 20 per cent more pilots if the new CAR had to be implemented. At that time Jet Airways and IndiGo said that they would honour the new guidelines. The then General Secretary of ICPA Captain R S Otaal had said: “If the airlines try to do away with the new FDTL, then it would move the court seeking its implementation.” That CAR was kept in abeyance. The latest study of the ministry has shown that pilots were found operating flights for 6.5 hours on domestic and 7 hours on international sectors against the DGCA guidelines of 9 and 10 hours, respectively. n

It may be recalled that in August 2007, the DGCA’s CAR on FDTL and FTL had raised the rest period for pilots between flights.

Cruising Heights January 2013

ATF woes continue

fter Minister of Civil Aviation Ajit Singh informed Minister for Petroleum and Natural Gas, Veerappa Moily, that the state-owned oil marketing companies were indulging in cartelization on Aviation Turbine Fuel (ATF), the latter responded that he would move a proposal to bring aviation fuel under the Petroleum and Natural Gas Regulatory Board (PNGRB). This means that the Board will be able to monitor pricing of jet fuel and initiate corrective action if it feels there has indeed been cartelization. The Civil Aviation Ministry in support of its contention cited instances where the oil marketing companies had charged from the airlines the same price in Kolkata and Chennai even though there was a price differential between these two cities. Ajit Singh argued for the move to a regime of Mean of Platts Arab Gulf (MoPAG) pricing mechanism for ATF instead of the present practice of import price parity that these companies follow. The Ministry of Civil Aviation was of the view that following MoPAG would actually reduce ATF prices in India and bring it at par with that charged in Singapore, Bangkok and Dubai. Implementing these steps could see airline costs coming down thereby allow them or create

ABOVE GROUND LEVEL 

room for fare cuts. Even as the arguments in favour of adopting an approach to cut ATF prices continued, the much illusive decision to get ATF as declared goods also continued to engage inter-ministerial attention. Accordingly both the Ministry of Civil Aviation and Ministry of Petroleum and Natural Gas have decided to jointly approach the Finance Ministry to convince the North Block mandarins of the need to notify ATF as a declared good. Once that is done, no state government would be able to impose a sales tax of more than 4 per cent on ATF. The business of seeking to get ATF as a declared good has been raging for quite a few years and in the initial days of the aviation boom in 2005-06, a meeting of state Finance Ministers had been convened to impress upon them the need to reduce sales tax on ATF and thereby reduce costs — and in turn offer lower fares for air journeys. This would also help in increased utilization of aircraft, airports and also set in motion the multiplier effects in terms of expanding commerce, business and tourism. At a recent meeting in Kolkata, Ajit Singh said though he had urged states to reduce sales tax on ATF, it was only the Chattisgarh government — incidentally,

transport — rail, road, air, inland waterway and sea — forming a great hub, will generate more traffic and demonstrate the contemporary outlook of a modern airport,” S Raheja, Member-Planning, AAI, said. Thiruvananthapuram Airport Director VN Chandran said that the “necessary backing of the scheme has been conveyed to the state government by the AAI. Now it is time to look forward to the day when the futuristic project will come to life”.

CIAL unveils state-of-the-art terminal

Cochin International Airport Ltd (CIAL) in Nedumbassery is all set to start work on a state-of-the-art new international terminal. Excise Minister of Kerala K Babu unveiled the new terminal’s design, which is based on Kerala temple architecture. According to the airport authorities, the facility, will be able to manage

Old charm: A view of Cochin Airport

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around 10 million international passengers per annum and will cater to the traffic demand up to 2025. V J Kurian, Managing Director of CIAL, said the new terminal would cost `450 crore. “CIAL is fully confident of raising necessary finances on its own to fund the project. The project has already been submitted to the Airports Economic Regulatory Authority and its clearance is expected soon,” he said. Kurian added that the public could put forward their observations and suggestions on the design of the new terminal. “We will give due consideration to those views while finalising the engineering design.”

looking to take action: Minister for Petroleum and Natural Gas, Veerappa Moily, has received complaints about the ATF cartelisation

Cruising Heights January 2013

news digest

ABOVE GROUND LEVEL  The new international terminal will have two levels. The ground level will cater to arriving passengers and the upper level will handle all international departures. The terminal will have 15 parking bays with full aerobridge connectivity. The terminal has been designed to meet the peak hour capacity of 4,000 passengers.

Changi may increase stake

Singapore-based Changi Airports International (CAI) is upbeat to increase its stake in the upcoming airport city project in West Bengal to about 51 per cent. Changi Airport India currently owns 26 per cent stake in the Bengal Aerotropolis Projects Ltd (BAPL), which is carrying out the airport city project at Andal in Bardhaman district. “Changi has expressed their willingness to further increase their stake in the airport project,” West Bengal Finance Amit Mitra Minister Amit Mitra said. “They have indicated that they are increasing their investment from 26 per cent to about 51 per cent. The airport is expected to be operational by the first half of 2013,” he said.

‘Airport security to be beefed-up’

Minister of State for Civil Aviation K C Venugopal said that to beef up the civil aviation security in the country, the Ministry had engaged a team of experts from the International Civil Aviation Organisation (ICAO) to carry out a meticulous study of the existing security system at the airports and propose measures for improvement. The ICAO study report, accepted by the government suggested establishing a dedicated Aviation Security Force (ASF) under the command and control of the Ministry of Civil Aviation which is supposed to

eliciting strong action: The Ministry of Civil Aviation is taking strong note of the cartelisation of ATF

the only state to have responded so far— that has been positive in deciding to bring down the tax rate to 4 per cent. However, this was unlikely to make any major impact as the Raipur airport in Chattisgarh hardly gets any traffic compared to metro and nonmetro airports. Ajit Singh commented that a number of letters had been written to “several Chief Ministers several times to bring down the sales tax to 4 per cent but are all worried about their fiscal problem”. For instance, Delhi charges 20 per cent, Maharashtra 25 per cent and West Bengal 29 per cent. Since there has been a lukewarm response to the sales tax cut proposal, the Centre has now decided to bring the pricing of jet fuel under the oil regulator PNGRB. The importance of this step is that the nodal ministry of oil market companies—the Ministry of Petroleum and Natural Gas—has piloted the move along with the user industry represented by the Ministry of Civil Aviation. Statistics relating to domestic traffic movement has already shown that month after month the number of passengers carried in the first ten months of 2012 had registered a fall compared to the same period of 2011 mainly on account of rising ticket prices which is due to rising ATF prices largely

and to a lesser extent airport charges. In order to counter the cost escalation partly, the Ministry of Civil Aviation has already decided to cut the ADF and UDF in Delhi and Mumbai Airports by 50 per cent. But even this is no full justice as it had been decided to completely suspend the imposition of ADF by early 2013. What is now being done is to extend it by two years but at half the original charges. There is, however, another side to the ATF story. In a disclosure in the Rajya Sabha, the Minister of State for Petroleum and Natural Gas, Pranabaaka Lakshmi, said on December 11, 2012, that Air India owed `4064 crore to the Oil Marketing Companies (OMCs) for its outstanding ATF bill of which `2571.73 crore was overdue. Air India owed `2394 crore to IOC, `1699 crore to BPCL and `1034 crore to HPCL. Jet Airways owed `958.46 crore but of this only `35.46 crore was overdue and the rest was under 90-day credit period that OMCs extended to Jet Airways. Similar facility was also extended to other airlines including Air India. Jet owed `111 crore to BPCL of which `30.84 crore was overdue. Jet has covered its outstanding with IOC with a bank guarantee of `923 crore which the oil company can encash in case of default. Jet Airways

In order to counter the cost escalation partly, the Ministry of Civil Aviation has already decided to cut the ADF and UDF in Delhi and Mumbai Airports by 50 per cent.

Cruising Heights January 2013

ABOVE GROUND LEVEL 

strict vigil: Security personnel on duty at one of the Indian airports

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had also given a bank guarantee of `160 crore to BPCL. GoAir had all of `99.56 crore outstanding with IOC which was more than covered with a `115 crore bank guarantee. SpiceJet too had an outstanding of `91.03 crore which it had covered with a bank guarantee of `95 crore. The total outstanding of the non-flying Kingfisher Airlines was only `79.74 crore with HPCL of which `14.38 crore was overdue. It had given a bank guarantee of `15.05 crore plus `200 crore corporate guarantee to cover its fuel outstanding. HPCL had been steadily encashing the bank guarantee given to it by Kingfisher Airlines. The Minister stated that in case airlines failed to pay their dues, OMCs took action for recovery of dues in line with the mutually agreed commercial terms between it and the airlines. Often OMCs put airlines on cash-and-carry and recovered the overdue payment by encashing the bank guarantee. They also sought post-dated cheques for outstanding and at times resorting to courts was not unusual. While the airlines and the OMCs were engaged in dialogue on whether to encash the bank guarantee or not, their respective nodal ministries of civil aviation on the one hand and the petroleum and natural gas on other, had joined hands to explore possibilities of reducing ATF prices. This was after the allegation of cartelization by OMCs to artificially mark-up ATF prices. If this kind of allegation had been levelled by airlines and the Ministry of Civil Aviation against the OMCs, the air cargo/courier/freight forwarding industries/companies represented by Express Industry Council of India (EICI) who have big names like FedEx, Gati and Blue Dart as their members have also

levelled similar charges against domestic airlines for working in concert or as a cartel to artificially mark-up freight charges on the cargo carried in the belly cargo space of their aircraft (see story on Page 62). EICI wrote to the Competition Commission of India (CCI) and the Minister of Civil Aviation Ajit Singh requesting them to look into the matter. According to Vijay Kumar, Chief Operating Officer of EICI, all domestic airlines have been increasing the fuel surcharge by the same amount at more less the same time. (This was similar to the charge airlines/MOCA made about OMCs on ATF prices.) “This led us to believe that they (airlines) acted in concert”. EICI has demanded that airlines must stop charging fuel surcharge till such time as pricing is made transparent and market forces were allowed to determine pricing. The Express Industry Council of India said the domestic airlines increased fuel surcharge by about 70 per cent last year while crude oil prices and dollar value did not show such abnormal increase. It said there was no transparent mechanism to charge fuel surcharge and the hikes effected by airlines was arbitrary and ad hoc. It may be recalled that domestic airlines began to levy fuel surcharge on cargo players from 2008 when the first news of global economic meltdown along with abnormal rise in crude prices hit the headlines. The EICI came to its own conclusion after studying the price movement of ATF and the fuel surcharge by domestic airlines over the past four years. It said the hike in surcharge was not in line with the price movement of the ATF. In fact they went to the extent of stating that there was no connection between the two. n Cruising Heights January 2013

be completely integrated with the aviation industry, in line with the practices across the world, Venugopal said. “To pursue the matter further, a subgroup was constituted by the Ministry of Civil Aviation to examine the recommendations of the ICAO study report on the creation of a dedicated specialized ASF.”

BIA crosses the 50-million passenger mark

Bangalore International Airport Limited greeted its 50 millionth passenger since the airport opened in May 2008. Within days of this announcement, it would have handled half a million Aircraft Movements (ATMs) and clocked in a million metric tonnes of cargo as well. This milestone ushered in multiple celebrations at the airport. While the 50 millionth passenger was greeted by the airport’s management with a surprise hamper, they also declared an entire year’s free usage of the F&B offering as a gift to the passenger. The employees of the airport also gathered together for a historical photo session forming the words 50 million. Commenting on the achievement of this milestone, Sanjay Reddy, Managing Director, BIAL said, “This is a special day for us at Bengaluru International Airport. This achievement comes within five years of operations and is a testimony of our ability to meet the rapid demand and growth of the domestic and international air traffic. This is also a sign for us that Bengaluru International Airport is an airport of choice for domestic

news digest

ABOVE GROUND LEVEL 

Express

decision

UPPING THE ANTE: Air travellers at Bengaluru airport

and international travellers. Looking ahead, we will set another milestone in 2013 with the phased opening of the expanded terminal. The new terminal will have the capacity to handle 20 million passengers annually.”

CIAL to use solar power

Cochin International Airport is set to become the first airport in the country to use solar power for running its utility grid system. Vikram Solar would be setting-up a 100 KWP solar power facility at the airport situated at Nedumbassery in Cochin.

t seems the Government of lore in Karnataka and over time India and the Ministry of much of the control had shifted Civil Aviation have finally to Kochi. Besides expat comsuccumbed to the pressure manders most of AIE’s pilots exerted by the Kerala Governcame from the parent Air India ment which had expressed its on deputation which created a serious displeasure at the way huge uncertainty in the schedule Air India Express was treating of the airlines’ operations. The NRIs in general and Non-Ressituation reached such a sorry ident Keralites (NRKs) in parpass that often flights were canRohit Nandan ticular with frequent flight cancelled at the last moment leaving cellations, hefty air fares, etc. the NRKs who formed the bulk In the last issue of CRUISING HEIGHTS, of AIE’s customer base. That is when the we had referred to the intensification of the present Chief Minister of Kerala, Oomen move virtually across the political class in Chandy, had earlier mooted the idea of Air Kerala to set up its own airlines to ferry Kerala in his first term over six years ago. passengers into and out of the state. It had Since nothing changed — or rather worseven applied formally and was mounting ened — with AIE operations, the CM galpressure on the Prime Minister’s Office as vansied support in the state to turn the Air well as the Ministry of Civil Aviation. Kerala idea a reality. For the record it may Though there was no placating of be stated that AIE gets 75 per cent of its Kerala, a move nevertheless had been business from Kerala — both resident and initiated earlier to transfer the operations non-resident Malayalees — and because of headquarters of Air India Express (AIE) this nature of business AIE has now decidto Kochi by the Air India management. ed to make announcements in Malayalam This will take effect from January 2013. as well. Interestingly, there was no opposiAir India Express had been started in tion to the proposal from any other state April-May 2005 with an all Boeing 737clearly suggesting the dominant use of AIE 800 fleet to service its low cost/fare opby NRKs. erations that had few legs which covered Things came to such a pass that much domestic destinations, mainly metros. The of the AIE fleet would remain on ground airline operated the lion’s share of flights either due to technical problems or pilot/ from three airports in Kerala and Mangacommander shortage. After AIE started in

going green: Solar panels stationed at one of the foreign airports

“The panels would generate DC electric power, which unlike the general practise, would not be fed directly into the utility grid,” said Gyanesh Chaudhary, Director, Vikram Solar. “Instead, inverters would convert the direct current output from the solar array into a grid-compliant AC voltage which will feed it into the utility grid system to be used for lighting in the terminal building.”

Cruising Heights January 2013

May 2005 and rose to full performance, it had 25 Boeing 737-800s that included 18 owned Boeing 737-800s and seven planes on lease. Over the years some of the leased aircraft were returned and the strength came down to 21 after providing for the loss of one Boeing 737 in the Mangalore crash in May 2010. The airline, a subsidiary of Air India, continued to make huge losses and the aircraft utilization came down to less than 9 hours. It also gave up its domestic presence as it stopped flying domestic routes which earlier had gained popularity because of the low fare between metros. At the end of the day no one gained: NRKs, nor resident Indians and, of course, Air India. While the decision was taken earlier, tt was at the time of Vayalar Ravi from Kerala as Civil Aviation Minister that a token decision was taken and some staff moved to Kochi to present a semblance of AIE. It was in mid-December 2012, that the Air India Board formally decided that there would be no further delay and Air India Express would be allowed to function independently and will soon be able to function as an independent entity with its own pool of pilots. The idea is to iron out and smooth its operations. The Board decided that Air India’s budget carrier AIE had been struggling with its flight schedule as it used the same pilot pool as Air India to operate its nearly 200 flights a week. According to Air India chief Rohit Nandan who spoke to the media after the board meet, “Air India will be allowed to function as an independent company and in insulation from Air India. We are putting in place a formula that would resolve the pilot issue for Air India Express. Pilots will no more go from Air India as we are getting expat trainer pilots for AIE”. AIE with its fleet of 21 aircraft — all Boeing 737-800s — was recently forced to restructure its network and withdraw some

flights in the winter schedule that became effective on October 28, 2012. According to the Board decision, AIE will recruit 60 pilots of which 30 will be commanders and 30 copilots within a year. Against AIE’s requirement of 252 pilots, it has at present only 186 pilots (both commanders and copilots) with another 60 pilots undergoing training. Nandan stated that Air India and AIE would function as separate entities and the low cost airlines will be on its own. Earlier pilots were being hired from Air India on deputation — that period will now be reduced and AIE will have to be on its own. Of the 21 planes, 17 are available at any given time since four of them are on ground for maintenance. In the next three years it is proposed to add 14 more new aircraft which could be mainly acquired through the leasing route. It may be mentioned here that soon after Air India found it difficult (200910) to induct all the 15 Boeing 777-300 ERs into its fleet, it stopped acquisition of this kind of aircraft when 12 of them joined its ranks. There was then serious discussion and Boeing offered to convert the remaining three Boeing 777-300 ERs options into narrow body Boeing 737-800s. For some reason, this did not happen. Today, however, the Air India Board itself wants AIE to have 14 new aircraft over the next three years in addition to the 21 it has now in its fleet. Going by recent past experience, it seems unlikely that AIE will be allowed to acquire these planes through actual purchase route. We feel it will lease the aircraft considering the financial crisis Air India itself is in and even the new turnaround plan as approved by the central government did not make any reference to it.

ABOVE GROUND LEVEL  Low-cost airports on the anvil

More low-cost airports across the country are on the anvil. Civil Aviation Minister Ajit Singh recently identifying the low-cost business model in domestic aviation as a 'key trend', said that the priority areas of his ministry included providing greater connectivity to smaller and remote parts of the country and development of low-cost airports. He also said that “apart from five major airports already operationalised under the public-private-partnership mode, government has given in principle approval for setting up of 15 new Greenfield airports, including those in Goa, Navi Mumbai and Kannur”. Singh also added that the reduction of value-added tax on aviation turbine fuel and bringing it under the Petroleum National Regulatory Board Act to control its prices as well as developing India as an international aviation hub were on the cards.

Kushinagar airport project on a roll

The finance ministry has approved `70.93 crore for the international airport at Kushinagar. The money has been approved under the ministry's Viability Gap Funding (VGF) scheme. State Tourism Secretary Manoj Kumar Singh had made a presentation on the airport project to the ministry about a month back. “The consent for financial assistance was received by the tourism department a few days ago,” said Bharti Singh, Officer on Special Duty, UP Tourism. “This would give the much needed infrastructure boost to the project.” “These facts not only hint towards the potential (of Kushinagar), they underscore the need for an international airport,” said officials.

Navi Mumbai airport gets push

Navi Mumbai international airport (NMIA) project recently got a major

in.com

Cruising Heights January 2013

news digest

ABOVE GROUND LEVEL 

MIAL gears up for 24x7 joints

In a major development in MIAL, a proposal has been mooted to allow restaurants and bars outside the airport to remain open 24x7. The government’s line of argument is that it will help commuters who miss their last trains or those who work night shifts. The proposal has been sent to all authorities concerned for their approval. “Lots of passengers waiting at

lounging around: Flyers at one of the restaurants in Mumbai airport

the airport are inconvenienced after restaurants shut. So, we have sent a proposal to allow eateries to remain open round the clock,” said a Mumbai Airport Spokesperson. The airport officials said that many passengers who have late nights or early morning flights come early to the airport. They have no choice but to wait outside as they are allowed to go inside the terminal only hours before the flight.

pib

push. The Centre has appointed a high-level panel headed by Chief Secretary Jayant Kumar Banthia to oversee the implementation of the project. The Ministry of Civil Aviation has asked the panel, which will include representatives from the Centre and the state government, the Airports Authority of India, and the CIDCO, to take actions for hastening the project implementation. It will be accountable for devising and assessing the bid document for selection of a concessionaire to build up the airport. The panel will also be responsible for making suggestions to the state cabinet for selection of the concessionaire.

exercising power: The Minister of State for Civil Aviation, K C Venugopal has reviewed the performance of Air India Express

Rohit Nandan made another important comment: “We want AIE to operate in the domestic sector as well. We want them to supplement our services and that will happen only if the strength of the pilots in AIE is increased.” There would be an increase in salary of pilots, captains, trainers besides an improvement in the working conditions. Emoluments of AIE crew would be comparable to the best in the industry. This will ensure continued service of existing commanders stated AIE’s COO A J D’Souza and Captain Pushpinder Singh, the Deputy COO, of the airline. To expedite training of existing trainee co-pilots it has been decided to hire pilot instructors from abroad. These foreign pilot instructors will not only enhance the strength of existing commanders but also ensure that trainee pilots complete their training schedule on time. D’Souza said instructions had also been issued to upgrade senior commanders as instructor pilots and the strength of trainer commanders would be increased from the present 4 to 13. Besides, the Board also decided to augment the existing number of officers at the AIE Corporate Headquarters at Kochi. Accordingly, the

senior level officers from operations, flight safety, commercial, finance and flight coordination would be based at Kochi. A customer service unit and airport service group are being set up and a call centre based in Kerala would be made operational very soon, said Captain Pushpinder Singh. He, however, disclosed that the Integrated Operation Control Centre (IOCC) of Air India and AIE will continue to remain in Delhi which means the asset management would be largely controlled from Delhi. With an Airline Resource Management System (ARMS) software in place, the geographical location of IOCC was not of much significance, Capt Pushpinder Singh remarked. It was sometime in the middle of December 2012 that the newly-appointed Minister of State for Civil Aviation K C Venugopal and a MP from Alappuzha in Kerala reviewed the performance of Air India Express and instructed staff to create an email id ixmailstominister@nic.in to receive passenger feedback and complaints. The Minister assured that his office would take action within seven days of receiving any mail from passengers. n

With an Airline Resource Management System (ARMS) in place, the geographical location of IOCC was not of much significance, Capt Pushpinder Singh remarked.

Cruising Heights January 2013

cover story

Getting a head-start 2013. A new year. New hopes but challenges too. Under pressure from all directions – finances, capacity, environment, to name only a few — the aviation industry around the world, wants to fly free — once again. In India too, the aviation story is being replayed. This time around, however, there are variations — most of them rather unpalatable for the industry — to the theme. While almost all the carriers have been having a hard time financially, two of them are neck-deep in losses. On its part, the government has done its bit by providing the much-demanded life support: foreign direct investment. Though till the time of going to press, there is no sign of monetary help to revive the carriers, there is hope that the situation will turn for the better. Moves are also on by the government to bring down ATF prices and once that is done, the industry could surely look forward to better days. Even so, aviation decision makers across the board, while agreeing that conditions were tough, were determined to counter the challenges head-on. Cruising Heights spoke to a handful of top aviation leaders… Srinivas Bommidala

V P Agrawal

Ajit Singh

Aditya Ghosh

Sanjay Reddy

Arun Mishra

Cruising Heights January 2013

Connectivity is must

Civil Aviation Minister Ajit Singh* has had to weather the recession, AI and the Kingfisher storms. But he is clear about his priorities for 2013 as he has often pointed out. On connectivity

* Based on recent interviews with the media.

Connectivity to Tier-3 and Tier-4 cities rules on compulsory plying are being examined. We are thinking of toughening the route dispersal guidelines, so that domestic carriers mandatorily fly to more Tier-3 and Tier-4 cities. The problem with these cities is not that they are in remote locations but they do not have connectivity. We are looking at creating a new category of such locations in the route dispersal guidelines, so they (the carriers) have to fly a certain percentage (of their flights) here. We could also increase the 10 per cent rule. The government will nudge them to fly to these cities and also have code-sharing agreement with the regional carriers.

On FDI in aviation

The importance of the sector dawned upon the government, especially in the backdrop of the acute financial crisis that the industry suffered in the past one year. It is not only about putting in money in domestic airlines, which are severely cash-starved, but also the possibility of strategic competence, new technology and higher service

standards. This policy change will elevate the mood of the sector.

On air traffic management

The GPS-aided Geo Augmented Navigation (GAGAN), an Indian satellite based augmentation system, will become operational by June 2013 providing a satellitebased navigation and seamless air traffic management. GAGAN was designed to provide additional accuracy, availability and integrity necessary to enable users to replay on GPS for all phases of flight front en route through approach for all qualified airports within GAGAN service volume. For maintaining safety, critical real time CNS-ATM (Communications, Navigation, Surveillance/Air Traffic Management) system at their optimum performance level is vital. Indian airspace will very soon have full radar coverage above 30,000 feet with the completion of installation of nine MonoPulse-Secondary-Surveillance-Radars with the existing radar infrastructure. Air Traffic Flow Management is another ambitious plan to reduce the traffic congestion over Indian air space. Besides maintenance re-

Air Traffic Flow Management is another ambitious plan to reduce the traffic congestion over Indian air space. Ajit Singh Minister of Civil Aviation

Cruising Heights January 2013

sponsibilities and running training facilities, ATSEPs (Air Traffic Safety Electronics Personnel) are also involved in installation of procured Navigational Aids and Instrument Landing Systems and in conducting routine and commissioning flight calibration of installed CNS facilities. These units enable value addition in maintenance aspects besides economic savings.

On Civil Aviation security force

The government is working on constituting a dedicated Civil Aviation Security Force as the Central Industrial Security Force, currently looking after aviation security, was formed for â&#x20AC;&#x2DC;a different purposeâ&#x20AC;&#x2122; to guard all public installations.

On airport modernization

The government is looking at replicating the public-private-partnership model to develop airports in small cities. There is also a need to build low-cost airports at smaller cities. Apart from five major airports already operationalised under joint venture/ PPP mode, the government has given in principle approval for setting up of 15 new Greenfield airports including Goa, Navi Mumbai and Kannur.

On Air India

We have appointed a real estate consultant who will help us in monetising our real estate.

On bilaterals

The ministry is also working to rationalise the bilateral policy under which agreements have been signed with countries based on two criteria â&#x20AC;&#x201D; some deals are based on total number of seats and others on the number of flights. Earlier, most planes were of similar size. But that has changed, with bigger planes coming in. So, once the bilaterals come for re-negotiations and once we utilise seats from our end, we are more inclined to go only for the number of seats. n

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priority: Connect india Arun Mishra, Director General of Civil Aviation, has his work cut out: along with his first task of filling up the DGCA, he will focus on creating regional connectivity.

he big challenge that the DGCA is facing right now is that of manpower. I hope that by 2013, we should be able to fill up most of our vacant positions and along with filling those up, provide proper training to all the newly-inducted technical officers in DGCA. We will also start an ATC licensing system and certification of ATC equipment. That is the new responsibility which we had taken over now and we will be able to fully operationalise it by 2013. Another major challenge will be the certification of the GPS aided geo augmented navigation (GAGAN) project which should be operationalised by the Airports Authority of India (AAI) in July 2013. So before that, we need to work together to prepare a certification programme for the GAGAN. Right now, we are concentrating on the Indian FIR and we will be providing the services for the Indian FIR region. However, we are also in talks with the neighbouring countries to use this facility by setting up stations there and we would be happy to provide these services to our neighbours. Some interest has been shown by a few countries but before we operationalise GAGAN, it will be difficult to convince them to take our services. The idea is to ensure seamless travel. We have a satellite-based augmentation system (SBAS) in Europe and we have one in Japan. Between the two, there is no satellite-based system. We want to bring in a seamless system. We would like to provide this seamless connectivity so that air transport throughout gets the American credible signals to operate. The other area which is our ministryâ&#x20AC;&#x2122;s priority is improve regional connectivity which means development of low-cost airports in Tier-III and Tier-IV cities and towns and popularize the use of smaller aircraft for passenger transport. The main problem in this is that we need to have airlines or operators bring in smaller aircraft. Most carriers operate big aircraft. Their operations to small towns are not viable because they cannot get enough loads. The

cost is very high for them. It then makes sense to have smaller aircraft, like 20 or 40-seater aircraft and improve regional connectivity. In India, the traffic to five cities/five airports covers 70 per cent of all the air traffic in the country. We have 82 airports. Regional connectivity has to be improved because the per capita flying is very low, even lower than Pakistan or Ethiopia. We need to increase this per capita flying and that only you can do by improving regional connectivity. Another top priority for us will be to work on business aviation. To promote business aviation we have to have more interaction with the operators and streamline the regulations to make it more a viable operation. That is a difficult proposition right now because there are so many rules and regulations which are common for scheduled operators and non-scheduled operators. But the requirements of these two operations are totally different. We need to look at the best international practices for business aviation and try to adopt them to benefit these operations.

One major factor that we are aware of is ATF prices: a major cost factor for the civil aviation industry. Arun Mishra Director General of Civil Aviation

Cruising Heights January 2013

Business aviation then will be a priority in 2013. The other area which needs focus is the MRO sector. We will need to look at promoting the MRO sector in India because in view of the tremendous growth in aviation here, our MRO sector is not that strong. Most of our operators use the services of MROs in neighbouring countries like Dubai, Singapore and Sri Lanka. We have the skilled manpower and what we need to create enabling circumstances and situations where such MROs can flourish in India. One major factor that we are aware of is ATF prices: a major cost factor for the civil aviation industry. We are trying to talk to the state governments to reduce taxes on ATF and also with the petroleum ministry to bring it at par with those prescribed by a petroleum regulator so that the pricing of ATF is transparent. These are some of the initiatives we are taking. If these things happen then the cost of operation will go down and we hope the ticket prices will also go down so that will give a boost to the aviation sector. n

On to the next phase

ince I took over the chairmanship of the Airports Authority of India (AAI) in 2009, I have been busy completing the earlier agenda: ensuring development at all airports. I am happy to inform that most of these developments have been completed. Now, there is need to go for the next phase of development: the development of airports in Tier-3 cities. So, that is what I would be taking up. Thatâ&#x20AC;&#x2122;s my agenda. I want to take the developments to the next level. Both Kolkata and Chennai airports are ready for inauguration. We have approached the Prime Ministerâ&#x20AC;&#x2122;s Office and requested the Prime Minister to inaugurate the new Chennai airport. Also, the President will be inaugurating the new terminal at Kolkata airport. So, the year will begin with the inauguration of both the airports. From the architectural point of view, these airports are definitely better (than other airports) and can easily be compared to the private airports in the country. These are marvelous pieces of architecture and can definitely give a run to these private airports.

Photos: H C Tiwari

Satisfied at the completion of world-class terminals at Chennai and Kolkata, V P Agrawal, Chairman, AAI, is ready for the development of airports in Tier-3 cities.

UNLEASHING future development : (Above) newly constructed check-in counters at Kolkata airport; (top) planes lined-up at tarmac in Chennai airport

There is need to go for the next phase of development: the development of airports in Tier-3 cities. V P Agrawal Chairman, Airports Authority of India

Cruising Heights January 2013

The Chandigarh airport will be coming up on a new site and for that work is going on. Hopefully, we will be able to complete it by mid-2014. That will be an international airport. My first priority is to ensure that when we deliver these infrastructural facilities, we should be able to put it to use fully. And, these should be user-friendly. My idea is to ensure that we commercialize this infrastructure because once the infrastructure is in place, more uses can be derived from it. More flights, for example, can be accepted. So, I want to take that advantage. It will be fully utilized so that the return on investment can be gained. Apart from this, I am also seeing the possibility of developing certain airports through the PPP route. This has been discussed with the Planning Commission and we have started work in that direction. And then there would be cityside development also taking place at certain airports. From the air traffic point, we have been rated by the US Federal Aviation Administration. My dream is to exceed that in 2013. Air traffic with GPS-aided geo-augmented navigation (GAGAN) must have bigger footprint. GAGAN already has a bigger footprint and can be shared by neighbouring countries and that is what I am doing gradually. As for Air Traffic Flow Management (ATFM), I am also integrating the neighbouring Flight Information Regions (FIRs) into that. So, my idea is, of course, targeting the neighbouring countries and then we can develop their infrastructure. And India is rated very well by these countries. Financially, we are fine but we would like the amounts pending with Air India and Kingfisher to be settled. There is a ray of hope since the government will be giving funds to Air India and hopefully it will be settling all its dues. Once that happens, probably AAI would become a loan-free company and then we will be able to borrow much more. I also have plans for the corporatization of AAI and we will be moving ahead in that direction. n

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Focus on core principles Aditya Ghosh, President, IndiGo, points out that the challenges in 2013 will be to monitor key costs and offer affordable fares regularly.

ndiGo entered the Indian market six years ago in 2006 as a low cost carrier, with one definite aim: to constantly re-define the standards in the airline business. Our vision has been to demonstrate repeatedly that low cost does not mean low quality and that we have a product that people should come to accept and see that this is the airline that will provide consistently low fares. It is a simple, hassle-free experience and, of course, our on-time performance has been excellent. And the customer should get whatever is the service definition — from booking tickets to collecting bags at the end of the journey. If we hang on to these three simple principles, people would like it. Besides flying to all key metros including Delhi, Mumbai, Chennai, Hyderabad, Bangalore, Chennai – 6E also flies to nonmetros like: Imphal, Patna, Guwahati, Imphal, Indore, Jaipur, Nagpur and Pune. Establishing a network beyond the metros allows IndiGo to provide enhanced connectivity and create job opportunities. Operating 373 daily flights, with 61 brand new A320s, connecting 33 destinations, is the testimony to 6E’s month-on-month growth in the Indian skies. Hence, our dot-to-dot route network reflects our detailed planning/market-wise understanding, which further helps the carrier to tap India’s untapped potential. Sticking to the LCC model, since 2006, has enabled IndiGo fly over 50 million passengers till date — which makes the carrier, the country’s largest and the fastest growing airline. Besides focusing on 6E’s three core principles — on-time performance, providing consistently low fares, and a courteous and hassle-free travel experience — the airline will continue to tap the huge passenger traffic the Indian market has to offer in the years to come. To meet the growing travel demand, IndiGo’s fleet expansion remains intact. By 2015, we would complete the delivery order of the 100 aircraft order placed in 2005. Thereafter, more airplanes are

expected to be delivered between 2016 and 2025 (as part of 180-aircraft deal with Airbus). Ordering more A320s was the natural choice to meet India’s growing flying needs. As air travel becomes more prevalent, IndiGo will continue to expand its network to meet the requirements of both business and leisure travellers wherever they demand it — both in India and abroad. For five years in a row, we have been named as one of the Top 50 companies to work for in India and the best in the transportation industry. We have a phenomenal learning and development team at our learning academy called ‘ifly’. The dedicated leadership related coaching vertical at ‘ifly’ along with the personnel at human relations, are the people who work the magic. Our focus on creating the world beating bench-mark(s) in the aviation fraternity — from the on-board flying experience to maintaining the reliable product (with the best Technical Dispatch Reliability statistic at 99.91 per cent), single aircraft fleet including the order of eco-friendly A320neo aircraft, and employee development through robust training programmes

IndiGo entered the Indian market in 2006 as a low cost carrier, with one definite aim: to constantly redefine standards. Aditya Ghosh President, IndiGo

Cruising Heights January 2013

— are some of the factors that have given IndiGo an edge over the others. The key growth driver for Indian aviation has been and will be in future — the need for high quality, low fare travel. The economy and aviation industry both have a symbiotic relationship. So, if India has to grow by 8-10 per cent, then the aviation market has to grow at double that rate. It would also mean reaching out to people who have not had the opportunity to fly so far — and that is a huge section of the population in India. We have one of the youngest populations in the world that is highly productive, so the combination of these factors complemented IndiGo’s entry and growth in the market. The key challenges are to keep the cost low and continue to offer lower and affordable fares. Airport charges and other related operating costs are an ongoing concern. To make matters worse, the Indian Rupee has depreciated by almost 25 per cent against the US Dollar during the last few quarters. So, one key focus area will be to monitor our cost carefully and offer affordable fares regularly. n

Readying for growth

Satisfied that Delhi and Hyderabad airports are among the top, Srinivas Bommidala, Chairman-Airports, GMR Group, is certain that 2013 will be a year of promise.

rom its first foray into airport development with India's first Greenfield airport at Hyderabad to restructuring and operating the Delhi International Airport, GMR Airports has come a long way. Hyderabad and Delhi Airports together account for nearly 30 per cent of India's airline passenger traffic. With the addition of Istanbul Sabiha Gokcen International Airport, Turkey, GMR Airports has evolved into a turnkey solutions provider in this segment globally, becoming the fourth largest private airport operator in the world. Over the past few years, our efforts have been aimed at delivering a delightful experience to the passengers and I can say with confidence that we have achieved our objective: both airports have been continuously ranked among the top five across the world, in their respective traffic categories. Both airports are now going through a phase where the capital expenditure has been incurred and hence our focus has shifted from asset creation to asset management and value enhancement. Delhi airport today has emerged as a model example of water

management in the state of Delhi using only 1/6th of its allocated water capacity. Both airports have achieved level 2 carbonaccreditation and will soon emerge as carbon neutral airports in the near future. Apart from striving for operational excellence, we are continually striving to enhance our offerings in the area of duty free, food and beverage, retail, services etc. Outlook for 2013  Decrease in traffic, specifically on domestic sectors has been a major concern for all airports. Reduction in airline capacity with the closure of Kingfisher’s operations coupled with the increase in airline tickets have been the major reasons. We expect that the domestic sector will continue to see sluggish growth during the first half of 2013. However, our outlook for the long run remains bullish.  Of late, Air India, which has its hub in New Delhi, has recaptured some of the market share it had lost in the recent past. This is an encouraging sign for the industry as it will bring a certain level of competitiveness into the industry. The infusion of funds

Hyderabad and Delhi Airports together account for nearly 30 per cent of India's airline passenger traffic. Srinivas Bommidala Chairman-Airports GMR Group

Cruising Heights January 2013

by the government into AI during 2013 will further inject positive energy life into the national carrier.  The industry is beginning to feel the pinch of lack of adequate skilled manpower. Till date, both private airlines and operators have looked towards Air India and AAI for skilled manpower. However, given the steady growth of the industry as well as the need to continually enhance operating performance, there is a need for the private players to invest greater amounts to groom and develop resources. This initiative will see a significant push in 2013. Hyderabad Airport has already made a start and has a fully functional aviation academy.  With IndiGo and Spicejet starting international operations, we are confident that there will be a significant shift of international traffic from foreign carriers to Indian carriers. The Ministry of Civil Aviation has already started taking necessary steps to increase utilisation of bilateral rights. This shift of international traffic to Indian carriers will boost the development of hub airports.  Landside connectivity for airports has not been given its due importance as previously the usage of airports has been limited to the more affluent sections of society. However as air travel increases (both in terms of users and frequency of usage), enhancing connectivity to airports needs to be given due focus. This is as much true for airports that are within city limits as those for airports outside the city limits like Hyderabad, Bangalore. It is heartening to note that more and more state governments have initiated positive steps in this regard.  During 2012, the Aviation Ministry and the Regulator have taken some very significant steps such as finalisation of tariff order for DIAL as also circulating the draft Civil Aviation Policy. However, significant room for improvement exists. We hope that the Ministry and the Regulator will take into account various representations made by private players and evolve a regulatory and policy regime which ensures private investments continue to flourish. n

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2013: transform CSIA G V Sanjay Reddy, MD, Mumbai International Airport, believes the year will be one where the dream of creating a world class gateway will be realised.

 One of India’s busiest international airport  One of the most constrained airports in the world  A vision to become one of the best airports in the world that delights customers and becomes the pride of Mumbai  Creating a new gateway to India

ll of the above hold good for Mumbai’s Chhatrapati Shivaji International Airport (CSIA). This clearly continues to be one of the most complex infrastructure projects being undertaken in India. A project, whose journey began more than six years ago when GVK Mumbai International Airport Pvt Ltd (MIAL) took over operations at CSIA. It is a project that is not just about airport development, but is closely linked to Mumbai’s urban renewal. It is truly a one-of-its-kind unique infrastructure project in the world and unlike any of the other international airports anywhere in the world. Over the last few years, a number of travellers, both leisure and business have passed through GVK CSIA and also witnessed some of the changes taking place. However, there are a number of real challenges that we have faced and will continue to encounter in 2013 as well. It is well documented that GVK CSIA is located in a unique position, right in the heart of Mumbai city. Not only is it highly constrained but also landlocked at the same time, with close to 2000 acres of land, of which 300 acres is occupied by slums. Unlike other airports in India, where space is definitely not a constraint, this effectively means that this land is not available for airport expansion. GVK CSIA is also currently one of the busiest airports in India. Consider the consistent growth in passenger traffic in the last few years. For example, the year 201112 recorded a total of around 31 million passengers and 0.65 million tonne of cargo. This effectively means going forward in

2013, the infrastructure at CSIA will have to necessarily keep pace to support this explosive growth. This would also lead to and will require more managing more Air Traffic Movements (ATMs), more parking bays, more ticketing counters, more passengers passing through the airport thereby leading to more facilities. Therefore as we prepare to welcome 2013, given the above challenges, we hope to achieve a number of significant milestones as we inch closer towards the transformation of CSIA. We have to keep in mind the fact that for most international travellers, it is the first point of entry into India. While the significant changes carried out by GVK in the last six years, have been duly acknowledged and appreciated by passengers, going forward in 2013 the expectations are definitely sky-high despite all the conceivable hurdles. great experience: Flyers at check-in counters in Mumbai airport

While GVK CSIA is fully operational at the moment and running to its full capacity, efforts are on to build a brand new integrated passenger terminal T2 at Sahar. It will be a state-of-the-art world-class terminal that will hold the capacity to handle 40 million passengers per annum and eventually become the pride of Mumbai. Once complete, T2 with an area of over 4.4 sqf will cater to both domestic and international passengers. Slated to be an iconic terminal, this will be the perfect expression of Mumbai’s achievements, its ambition and its imagination thereby creating an inspiring experience and a welcoming gateway to Mumbai and India. Moreover, with its meticulous planning and state-ofthe-art technology, the terminal will offer passengers a seamless journey that will be punctuated by a series of wonderful experiences. Its overall design will give passengers a distinct ‘Sense of Place’ and a clear awareness that they are in Mumbai. n

In 2013 we will continue to focus on technological innovation which is essential for us to be a truly remarkable airport.

G V Sanjay Reddy, MD, Mumbai Sanjay Reddy Managing Director MIAL & BIAL

Cruising Heights January 2013

create southern gateway Bengaluru International Airport MD G V Sanjay Reddy's dream of creating the southern gateway of India will be a step closer to fulfilment.

n Bengaluru, as 2013 dawns, we are on the cusp of significant developments in our journey as an operational airport. The New Year holds a lot of promise: in some aspects, it will be a milestone marking one more notch in our endeavours from 2011. The past two years have witnessed fundamental changes in the way we conduct business and welcome travellers to Bengaluru. 2013 will see these efforts take a tangible shape in the form of the expanded Terminal 1. Designed to enhance operational performance and cater to the increase in passenger traffic anticipated by 2015, the expanded T1 will open in phases starting early next year. It’s also a sign for us that Bengaluru International Airport is an airport of choice for domestic and international travellers, and that we are closer to our long-term goals. GVK Bengaluru International Airport’s vision is clear, to become the gateway to

the South of India, enabling the economic prosperity of this region by facilitating the region’s connectivity to the world. Our aim will be to continually work in sync with the current and proposed developments in and around the airport. We have very ambitious plans for the airport: a modern transport hub that serves as a catalyst for future social and economic development. We aim to continue developing and modernizing the airport infrastructure to avoid capacity constraints, improve air space efficiency and minimize costs. In 2013 the airport will embark on the plan for Terminal II and the second runway. A comprehensive review of the master plan is already underway. By the time the master plan vision becomes a reality, Bengaluru International Airport will have the capacity to handle close to 50 million passengers. Additionally, we have also charted a comprehensive roadmap for sectors includglobal vision: Bengaluru airport attracts flyers from all across the globe

International Airport, believes the year will be

Cruising Heights January 2013

ing passenger services, cargo operations, other aviation related activities and new exciting commercial spaces. In this effort, we have initiated the implementation of the local Airport Collaborative Decision Making (A-CDM) programme to help us increase airport efficiency. This is also a prerequisite to the proposed ‘Indian Central Flow Management Unit’ of the Airports Authority of India (AAI). We have embarked on the journey to get the A-CDM certification this year. The certification process of A-CDM was started in April, 2012. The usual length of the certification process is 12 months. By early 2013 we should achieve the local A-CDM. In the next year, we will continuously work with the state to ensure prominence for this region on the global map. We have worked closely with the Karnataka Tourism to promote the region and its rich culture and heritage. Kaapi Trail, the concept that was conceptualized in 2011 as part of our overall brand objective of positioning Bengaluru as the Gateway to South of India will be taken a step forward with the concept coming alive by making it a single click bookable experience. We believe that efforts such as these will go a long way in establishing Bengaluru as a gateway to the South of India and bring economic prosperity to this region. In 2013 we will continue to focus on technological innovation which is essential for us to be a truly remarkable airport and provide world-class travel experience for our passengers. We will also continue to work in sphere of sustainability. We are India’s greenest airport and our strategy for the next year contains an action plan to improve our sustainability performance. I am confident that our investment, coupled with the ambitious airport development plans will deliver a lasting economic legacy for the city. More quality jobs, enhanced facilities for local residents and visitors, the business community better connected through a growing international network of routes and an airport driving the economy forward. n

aero engines FIRST OF THE FIRSTS: PurePower PW1100G-JM will be the first engine to enter service on the Airbus A320neo

Pratt & Whitney

Neo vs Max

Battle of the engines Whose engine will be more fuel-efficient and better in performance: P&W’s A320Neo’s or CFM’s B737Max’s?

n November 28, 2012, Pratt & Whitney’s first Airbus A320Neo engine revved for the first time. The engine crackled to life on the first attempt. The event happened on engine PW1100G Neo at the company’s West Palm Beach test stand. In the few weeks since then, the engine has been put through the paces — described as ‘break in’ on the shop floor. As part of this process the engine goes from idle to full thrust where its integrity is checked both for hardware and performance. Once that is green-lighted the engine is ready for a series of tests. Does the engine meet the critical fuel burn targets? Seems tough to say so soon

but reports suggest that the performance so far in terms of temperature and speed is bang on target. This is the third in the series of geared turbofan (GTF) engines from the P&W stable. The earlier ones include the PW1500G for Bombardier’s CSeries and the PW1200G for the Mitsubishi Regional Jet (MRJ).In both those engines there were minor tweaks and adjustments after the initial break in. Basically, the first engine usually helps define if the architecture is working well, the heating and cooling of the engine and to simply clear whether the design can stand the test of time. According to reports both the second

Cruising Heights January 2013

and third engines are under assembly and the testing on them are likely to begin towards February this year. The second engine will be flown mid-2013 on Pratt’s Boeing 747SP flying test bed. It is expected that the Neo engine will be ready for certification by August 2014, well ahead of the scheduled first flight of an Airbus A320 Neo that is planned for the last quarter of 2014. A total of eight engines will be part of the test programme. They have been divided into two segments. The first four will undergo tests related to

performance and operational qualities and systems while the second set of four engines will be used for evaluations required for FAA and EASA (European Aviation Safety Agency) certification the Neo is expected to enter service in October 2015 with IndiGo as its launch customer. Believe it or not Irkut’s MC 21 will sport the same engine that is being designed for the Neo (PW 1100G). This aircraft is due to enter service in 2017, but there are some differentiators between the Neo and the MC21 engine in its external packaging. The aircraft is due to enter service in 2017. Pratt is also finalising development on the nacelle. That is expected to be tested in early 2014 and is under development with Shorts in Ireland. Safran’s Aircelle is providing the nacelle for the CFM Leap-1A — the competing engine on the Neo as well as for the Leap-1C-powered C919 in development by Comac of China. The Pratt engine is the only one from what one can describe as the traditional engine manufacturers that power the world’s major commercial jetliners. The Russian Aviadvigatel PD-14A turbofan will be the alternate engine on the MC-21. The design work on the MC-21 is likely to be frozen by the year-end and the first flight is expected in 2016. Meanwhile, here’s the update on the Max. It’s got ceramics and metal, carbon and resin and its all these that will make the new CFM (a 50-50 joint venture of GE Aviation and France’s Snecma) developed Leap engine for the 737 Max, 15 per cent more fuel-efficient. Reports suggest that the progress on the engine’s development is on schedule with the power plant scheduled to go into testing by the middle of 2014.

CFM

GUNNING FOR MORE: Boeing 747 Max is powered by CFM’s LEAP-X engine

Certification by the US Federal Aviation Administration is expected in early 2016. Boeing has repeatedly stated that it expects a minimum of 15 per cent fuel efficiency on its new 737 MAX. Some insiders claim it is closer to 19 per cent — the sort of claim that led to rival Airbus putting out a widely-publicized ad with the caption: ‘Why is our competitor stretching the truth?’ In real terms it’s the engine guys who can give the correct picture. And there’s CFM that makes engines for both the present 737NG as well as the 320 and is making the ‘Leap’ engine for both the MAX and the Neo According to the Seattle Times: “In a briefing in Seattle, LEAP program managers Gareth Richards and Francois Bastin outlined their technology. They also offered a calmer take on how the two airplanes may stack up than Airbus did in recent tradepress ads showing the 737 MAX with a Pinocchio nose. Bastin said the LEAP’s new elements have been developed and tested over years. ‘It’s an evolutionary approach to introduce revolutionary technology’.”

Cruising Heights January 2013

Here’s what they said:  The improvement across both aircraft are likely to be same  The Boeing aircraft is lighter than the Airbus, therefore the MAX version of the LEAP is much smaller than the Neo version — 69 inches vs 78 inches in diameter.  Both the MAX and the Neo engines will each be 15 per cent more fuel-efficient than current models. That’s a CFM contractual guarantee.  The total weight savings from using composites in the fan system alone is 500 pounds.  Snecma’s debris rejection system ensures that sand or other runway debris that is sucked in by the fan is centrifuged out to the edges and bypasses the engine core.  GE’s expertise is in the hot, high-pressure core of the engine, where the air is squeezed until its volume is reduced by a factor of 22 — twice the compression ratio in today’s 737 engine. As with the P&W engine, a literal twin of the Leap engine under development for the MAX will be used on COMAC’s C919

Numbers game A320neo

Engine

Boeing 737 Max

AirAsia

LEAP-X1A

Silk Air

Engine

Pegasus Airlines

Aeromexico

LEAP-1B

Interjet

ALAFCO

LEAP-1B

ICBC Financial Leasing Co

United Airlines

LEAP-1B

Avolon

Air Lease Corporation (ALC)

LEAP-1B

Middle East Airlines Air Liban

Virgin Australia

LEAP-1B

Lion Air

LEAP-1B

Norwegian

LEAP-1B

PW1100G-JM

ALAFCO

PW1100G-JM

Southwest

Spirit Airlines

American Airlines

AviancaTaca

Alaska

Volaris

Avolon

LEAP-1B

GECAS

LEAP-1B

Transaero Airlines Qatar Airways

PW1100G-JM

GOL

Aviation Capital Group (ACG)

LEAP-1A

Icelandair

Republic Airways Holdings

LEAP-X1A

JetBlue

PW1100G-JM

TAM Qantas

LEAP-1A

CIT Aerospace

PW1100G-JM/ LEAP-X1A

Garuda Indonesia

LEAP-1A

Cebu Pacific

PW1100G-JM

Lufthansa

PW1100G-JM

American Airlines CAS GoAir

PW1100G-JM

LAN IndiGo

PW1100G-JM

AviancaTaca SAS

Leap-X1A

GE Capital Aviation Services

LEAP-X1A

ILFC

PW1100G-JM/ LEAP-X1A

Virgin America

LEAP-X1A

TransAsia Airways

PW1100G-JM

single-aisle aircraft. Considering that both the Max and Neo are not cleansheet developments, their success in real terms will depend — to a huge extent — on the efficiency of their engines. CFM is using cutting edge material to make sure the new engine

Source: Reports weighs the same as the one on the present 737 despite the fact that the engines are larger in diameter. And in order to achieve this, literally every part of the engine has been changed. There are 18 composite fan blades at the front of each engine replacCruising Heights January 2013

boeing

Norwegian Air Lease Corporation (ALC)

productivity redefined: Boeing’s newest family of airplane — Boeing 737 MAX being given the final touches in the asembly line in Renton, Washington, US

ing the 24 to 26 titanium fan blades in the current engines. CFM froze the fan size on its LEAP engine, also in development, in September 2012. Fan size is a bit of a crucial issue for the low-to-the-ground 737, because in the current version there’s minimal ground clearance even with an out-of-round air intake that’s slightly flat on the bottom. The LEAP engine on the 737 MAX will sport a 69-inch fan, while the LEAP engine fan on the rival Airbus A320Neo will be 78 inches. Boeing and Airbus have been sparring over which will prove to be more fuel-efficient, according to this Seattle Times article. Fuel efficiency is affected by a combination of factors, including propulsion, weight and drag. Composites are far lighter than metals and can handle much higher loads of heat without air cooling. That would mean more stream for greater thrust. Another first is ceramic ball bearings. In another first, the engines will be full of monitoring equipment which means far more data will flow to ground engineers giving them an opportunity to rectify issues as soon as they arise or in most cases catching problems before they arise! The production of Aircelle (Safran) engine nacelles for Airbus A320neo is moving ahead full steam jetliners has become a reality with the manufacture of initial fullscale thrust reverser components using concurrent engineering, rapid prototyping and

AVSPOT game changer for Turbos Pratt & Whitney has been awarded a contract for research and development of an advanced variable-speed power turbine (AVSPOT) for the US Army’s rotorcraft. P&W will develop a turbine technology that will efficiently address the range and lift requirements of the army’s existing and future rotorcraft. The AVSPOT programme — a JV of the US Army’s Aviation Applied Technology Directorate (AATD) and NASA — is focussed to produce an advanced turbine technology that will enhance the performance, efficiency and affordability of rotorcraft engines. Turbines developed under the programme are expected to enable the future medium and large rotorcraft to hover at up to 10,000ft and cruise at up to 25,000ft altitude, with high-operating efficiency. AVSPOT will also help the rotorcraft to operate with reduced fuel consumption, lean manufacturing techniques. Aircelle’s first-build components include the thrust reverser’s forward frame and structural beams, its inner fixed structure and aft extension, along with the aft core cowl. They represent a major percentage of the thrust reverser’s structural framework — which becomes an important portion of the overall engine nacelle. The elements were produced with composite and metallic materials, applying the same manufacturing process that Aircelle will employ in its series production of the A320neo nacelles — including automated composite lay-up. They subsequently were assembled at the company’s Le Havre, France facility, enabling a one-to-one assessment of their integration, along with a confirmation of the ergonomic aspects for production line build-up. Aircelle has responsibility for the complete nacelle on A320neo aircraft powered by CFM International’s LEAP powerplants, including integration on the engine. The A320neo nacelles benefit from Aircelle’s proven technology developed for its growing product portfolio — such as the nacelles used on Airbus’ A380. For the A320neo program, Aircelle has developed a comprehensive technology roadmap that incorporates innovations in systems, composite materials and acoustic treatment; while also using leading-edge production techniques and processes. The A320neo is Airbus’ new engine option version of its best-selling A320 aircraft family, which offers additional fuel savings and performance improvements for operations of the single-aisle jetliners. n

cost, weight and durability, as opposed to the existing power turbines. The concept of enabling greater power and rotor speed for takeoff and climb, as well as slower optimised rotor speed at cruise pose significant challenges. The project is a work in progress, but AVSPOT technology is expected to be evaluated by the army in a laboratory environment in 2016. “Pratt & Whitney looks forward to participating in the AVSPOT programme, and we’re confident we will be able to meet the mission profile requirements needed for future rotorcraft engines,” said Annette Jussaume, General Manager, Small Military Engines. “We have the technology know-how that will allow us to develop an efficient high-power turbine that can operate over a wide range of engine speeds.”

China readies to better the best Aviation Industry Corp of China (AVIC) has set aside 10 billion yuan ($1.6 billion) for the first phase of the three-part plan, which will fund the research and development of engines until 2015. AVIC will invest the funds in research and development of an “advanced” engine in the first phase of the programme through 2015, the China Daily newspaper said. A long-term plan spanning until 2030 to develop advanced aviation engines is on the anvil. Total spending on engine development by all the country’s companies could top 100 billion yuan, the official Xinhua news agency said. AVIC already produces engines for smaller planes such as trainers and executive jets, as well as for military aircraft, the reports said. “The United States has been striving to make sure it leads by at least 20 years in the aviation engine industry. For us, the company has made a comprehensive plan through 2030, including the technological Cruising Heights January 2013

targets we shall have achieved by that year and the amount of money we will possibly invest,” said Zhang Jian, Deputy General Manager of AVIC Engine Holdings. “Now most of the engines used by the People’s Liberation Army air force are manufactured in China,” he said, adding that in order to catch up with the latest and most advanced aviation engines, the AVIC has a plan that can be broken down into three phases. “During the first phase, which will conclude by the end of 2015 if everything goes well, we will strive to ensure our air force’s aircraft be equipped with proper engines and to lift our development capability to that of the developed countries’ level in the 1980s. The second phase will witness us substantially narrowing the technological gap between developed countries and us. And by the end of the last phase, our engines will be as advanced as theirs.”

aero engines

GE Aviation tie up FADEC sets up another JV with Accenture

GE Aviation and Accenture has formed a joint venture called Taleris. The new JV will provide airlines and cargo carriers with information and data to help improve efficiency. Flight delays cost airlines $40 billion every year worldwide and 10 per cent of delays are related to unexpected aircraft maintenance issues, according to GE. Under the joint venture, GE Aviation’s Intelligent Operations service will use algorithms to monitor data collected from aircraft equipment and Accenture will monitor that information for the customers and provide suggestions on route information and preventative maintenance to improve performance.

FADEC International — a BAE Systems The partnership leverages FADEC Internaand Sagem Joint Venture (JV) — has estabtional’s experience of supplying FADEC lished yet another JV with GE to develop, systems to GE since 1984. produce and support the full-authority “The creation of the FADEC Alliance digital electronic control (FADEC) for joint venture continues FADEC Internaaircraft engines. FADEC — in real terms tional’s business relationship with GE onto is at the heart of the engine’s performance the next generation of aircraft,” said Dennis and consists of an engine control unit (a Slattery, President of FADEC Alliance and digital computer) that controls Director of Engine Controls every parameter of an for BAE Systems. engine’s perfor“The FADEC, mance includutilizing engine fuel ing fourth flow. generation, FADEC proven engine International controls, will is a 50-50 joint be a technoventure between logical disa subsidiary of BAE criminator for CFM Systems Controls and International’s LEAP Sagem (Safran group), PERFORMANCE DELIVERED: FADEC controls all engine.” aspects of aircraft engine performance that focuses the two While The LEAP companies’ capabilities to design, produce, engine is designed to power the next genand support FADEC for commercial aircraft eration, narrow body commercial aircraft, engines. GE’s Passport engine, designed for ultraAs the sole provider, FADEC Alliance long-range business jets, has been selected will be responsible for the design, manufac- for the Bombardier Global 7000 and Global ture and aftermarket support of the system. 8000 business aircraft.

50 years of PT6 power The incredibly popular Pratt & Whitney PT6 turbine aircraft engine celebrates its 50th anniversary this year. With more than 50,000 engines delivered and 380 million hours flown, the PT6 has a track record like few others. King Airs, Caravans, and a host of others (130 different aircraft, including helicopters) have been fitted with variations of this time-tested turbine, and Pratt & Whitney Canada has launched a year-long celebration of the PT6 golden anniversary. At Pratt & Whitney Canada’s PT6 Nation website, one can join a community of more than 32,000 PT6 operators, pilots,

and fans. The site is a lively place where you can find information about the PT6 engine and its applications, technical support, success stories, blogs, events, photos and more. The site has a few staggering statistics. Among them: “Every second of every minute of every day, a Pratt & Whitney Canada-powered aircraft takes off or lands somewhere in the world.” Company officials noted that seven new versions of the PT6A have been certified in the past five years, including the PT6A-140 — the first in a series of 1,075shaft-horsepower models designed to deliver improved takeoff, climb, and cruise performance in ‘hot and high’ environments. Modern versions of the PT6 family are significantly improved over the origCruising Heights January 2013

7000 strong Pratt & Whitney’s Singapore engine centre recently celebrated the milestone delivery of its 7000th overhauled engine. The centre has delivered 3,730 PW4000 series of engines (that power Airbus A300, A310 and A330 aircraft family as well as Boeing 747, 767, 777 and MD11 aircraft), 174 CFM56 engines (that power Airbus A340 aircraft), 47 GE90 engines (that power Boeing 777 aircraft) and 3,049 JT9D series of engines (that power Boeing 747-100 aircraft). Growing from its beginnings to support Singapore Airlines’ (SIA) 747 fleet, the centre today maintains a diverse portfolio of customers from around the world – with approximately 50 per cent from the Americas, 40 per cent from Asia Pacific and the remaining from Africa, Europe and Middle East. Speaking about the delivery of 7,000 engines, William Kircher, Pratt & Whitney’s Singapore Overhaul and Repair Vice President pointed out that the Singapore engine centre had “accomplished this feat, demonstrating it has developed world-class service excellence’’.

Focus on ‘Copters P44

P46

RUSSIA's PRIDE

A BIG DEAl

Russian Helicopters delivers another batch of the advanced Mi-17B-5s choppers to India

Bell Helicopter joins hands with India's Dynamatic Technologies

Russia, India to produce choppers mil

strategic union: The Mi-82, one of the helicopters produced by the Mil Moscow Plant, an important part of Russian Helicopters which is set to collaborate with Elcom Systems Private Limited to establish a cutting-edge facility

he Mil Moscow Helicopter Plant — the world-famous designer and developer of helicopters including the Mi-8, Mi-24 and Mi-26 models — is 65 years old. Named after distinguished engineer Mikhail Mil, the plant was born in 1947. M L Mil Today, the Mil Plant is one of Russian Helicopters’ most important intellectual assets, and is a key component of the helicopter innovation cluster that is being established at the company’s National Helicopter Manufacturing Centre in the town of Tomilino, Moscow Region. The centre is the focal point of the bureau’s scientific, design and engineering resources and will also be home to the Kamov Design Bureau.

The Mil plant has produced some unique and legendary brands. Among them is the Mi-8/17 series, the world’s most popular helicopter, with more than 12,000 produced in a period of 50 years. There is also the Mi-35M, the only military transport helicopter in its class; the Mi-26(T), the world’s heaviest-lift transport helicopter with a 20-tonne lift capacity; and the new Mi-28NE Night Hunter, which boasts unique manoeuvrability and can fly military missions around the clock in all-weather conditions. The priority areas for the Mil Plant include the planned Mi-38, the Mi-171A2 and advanced high-speed helicopters. The Russian Advanced Commercial HelicopCruising Heights January 2013

ter (RACHEL), the medium advanced high-speed helicopter project presented to the global commercial market at the Farnborough International Airshow, is a breakthrough innovation that could have a profound influence on the future of helicopter manufacturing globally. During the recent visit of Russian President Vladimir Putin to Delhi, Russian Helicopters (a subsidiary of Oboronprom, part of Russian Technologies State Corporation) and Elcom Systems Private Limited (part of the Indian Sun Group) signed an agreement to set up a modern industrial facility for the manufacturing of Russian Helicopter models: the Ka- and Mi- brands. The joint venture will have the capacity to produce key helicopter units and carry out final assembly of the machines as well

Focus on ‘Copters as engage in ground and flight testing. It is expected that the enterprise will start with production of components for the multirole Ka-226T helicopter. The agreement will also serve as an industrial base for hi-tech Russian rotorcraft products in India. “India is a traditional partner of Russian Helicopters in terms of helicopter deliveries. The creation of a joint Russian-Indian enterprise marks a new stage and also a

logical continuation of our joint efforts in light of the growing demand for Russian helicopter models,” said Dmitry Petrov, CEO of Russian Helicopters. According to Petrov, the joint venture will help drive the development of India's aerospace industry and provide for effective application of advanced Russian technologies. It will also make it possible to organise the training of Indian engineers and promote the develop-

ment of highly qualified personnel across the entire production chain. Additionally, the enterprise will be eligible to implement offset-projects under various procurement tenders in India where Russian rotorcraft are involved. The holding company and Elcom Systems also reached an agreement on plans to create a joint helicopter academy in India for the training of flight and technical personnel. n

Chinook beats Mi-26

jkaiser's' photostream

India has taken the Boeing Chinooks instead of the Russian Mi-26 helicopters in a tender on the delivery of 15 heavy-lift helicopters to the Indian Air Force (IAF). Both the Russian upgraded Mi-26T2 Halo and the Boeing Chinook CH-47F had qualified in the technical trials and their financial bids, covering the initial acquisition cost as well as the lifecycle costs. What is believed to have tilted the scales in favour of the Chinook were the cost effectiveness and after-sales services. “In the proposal initiated by Indian Air Force for procurement of 15 Heavy Lift Helicopters, Boeing with Chinook Helicopter has emerged as the L1 Vendor,” the Defence Ministry said in a statement. “The Field Evaluation Trials for these helicopters conducted by the Indian Air Force have found them to be compliant with all the stated Air Staff Qualitative Requirements (ASQRs),” the statement said. The cost of the future contract will be determined following contract negotiations with Boeing, which are currently underway, the Defence Ministry statement added. However, Russia’s state arms exporter Rosoboronexport recently insisted that the outcome of the tender had not yet been determined.

Kazan’s Mi-17B-5s come to India

BOEING

Russian Helicopters has delivered another consignment of Mi-17B-5 helicopters to India as part of a contract signed by Rosoboronexport and India's Ministry of Defence (MoD) in 2008. The helicopters were built by Kazan Helicopter Plant, a Russian Helicopters company. The final delivery under the contract is scheduled for 2013. The Mi-8/17 series of helicopters is one of the symbols of Russia's aviation industry. The latest models combine advanced technologies with years of operational experience accumulated by their predecessors. These advanced helicopters, the best in their class, are equipped with the latest navigational and on-board systems, and maintain high levels of reliability, simplicity and ease of operation that generations of operators have come to expect. They can fly a wide range of missions in conditions ranging from tropical and maritime climates to high altitude and desert environments. The Mi-17B-5 has been built to the requirements of the Indian Ministry of Defence and is one of the most advanced helicopters on the

Cruising Heights January 2013

global marketplace. The choppers are equipped with new VK-2500 engines that have an electronic control system and deliver enhanced power performance. This is particularly important in hot climates and at high altitudes. Additionally, if one engine fails, the reserve power provided by the second engine ensures safe operation through to landing. The onboard systems allow the helicopter to operate day and night in all-weather conditions. A new navigation system has been developed for this version of the Mi-17B-5 that shows all of the piloting and navigation information on four multifunctional display screens, thereby significantly reducing the crew's workload. The medium multirole Mi-17 is the export version of the Mi-8. Their versatility and high performance have made these helicopters one of the most popular Russian-built helicopters around the world. More than 12000 Mi-8/17s are in operation in more than 110 countries. The advanced versions of the Mi-8/17 are built at the Kazan Helicopter Plant and the UlanUde Aviation Plant.

Focus on ‘Copters

All pic: augustawestland

Russia’s dominance in transporting VVIPs like the President and the Prime Minister is in its final stages. The government ordered a dozen Italian-made helicopters in 2010 for VVIPs and the first of them will be flying in even as this issue reaches our readers. Two others will arrive sometime in the year. The Italian-made helicopters will replace the old Russian Mi-8s and Mi-17s that are

with the Indian Air Force’s Communication Squadron, that is responsible for flying the President, PM and other VVIPs. Made by the Italian company Finmenicca, the ` 4,000-crore deal for the 12 AW-101 AgustaWestland helicopters has seen many ups and downs. The deal was under a cloud because allegations of bribery had been aimed at the company that prompted the Indian government to institute an internal inquiry. It was only after the Indian Embassy in Rome was unable to substantiate any wrongdoing in the helicopter deal, that the Defence Minister gave his nod. According to the Defence Ministry, the decision to order the VVIP choppers had been taken quite a few years ago and between 2002 and 2004, the then NDA government had changed specifications and requirements. Among the specifications was a demand from the Air Force that said that the choppers would be able to fly at about 18,000 feet. It was only then that the government realised that there was only one manufacturer that made helicopters that could fly at 18,000 ft. Soon enough, those who were responsible for the order also realized that VVIPs would rarely fly at such heights – and if at all they did, they would use bigger planes. It was then decided – after consultations in which the then Principal Sec-

Now, new choppers for President, Prime Minister

a class apart: The plush and luxurious interiors of the AW101 and the advanced cockpit

retary to the Prime Minister and National Security Advisor Brajesh Mishra was also present – that the order would be for helicopters that could fly at heights of 13,500 ft. Finmeccanica was given the order for the helicopters but before it could deliver one helicopter, allegations of bribery against the company came up. While the Italian government has been looking into the allegations, on his part Defence Minister A K Antony found no evidence about the allegations of bribery. He could have cancelled the deal but he went ahead. Cruising Heights January 2013

Of the 12 choppers, eight will be for VVIPs. The remaining four will be used for non-VIPs. The VVIP ones may not be as technologically advanced as US President Barack Obama’s ‘Marine One’ but they have the bells and whistles that go with VVIP aircraft: missile-approach warners, chaff and flare dispensers and infrared electronic counter-measures. Perhaps, one of the main reasons why the AW-101s were chosen came from the Special Protection Group incharge of the Prime Minister’s security. These choppers have a “a high tail boom”. Simply put, vehicles carrying the Prime Minster can stop at the rear exit staircase with little or no security threat from anyone nearby. And to top it all, the AW-101s will accommodate only 10 passengers in the VVIP configuration instead of the usual 40. Among the other contenders for the VVIP Specials were the Sikorskys S-92 Superhawks.

Focus on ‘Copters More time for 197 chopper deal

Bell tie-up with Dynamatic bell

Ajvol wikipedia

The Defence Ministry has asked the two vendors in the race for the procurement of 197 light helicopters to extend the validity of their commercial offer because the tender process was delayed. According to defence ministry sources, one of the firms, European Eurocopter told the Ministry that ‘in the absence of any visibility regarding the finalisation of the case, we are unable to grant a further extension to our commercial offer'. The other company in the over 48-month-old tender is Russian Kamov, which is offering its

Ka-226 Sergei choppers. The 197 light helicopters are being procured by the Army and the IAF to replace the vintage Cheetah/Chetak fleet of choppers, which are critical for providing supplies to troops deployed in Siachen Glacier and other high altitude areas. In a letter written to Director General (Acquisition), S B Agnihotri, Eurocopter has said it 'shares concern regarding the delay of the on-going procurement case considering the importance of this programme for the Indian armed forces. The field evaluation trials had been concluded at the end of 2010 but there is no indication concerning the start of the commercial negotiations which has become a serious worry for them, the European company told the ministry. Eurocopter has sought a "clarification from the Defence Ministry regarding the expected time frame of this procurement programme, the sources said.

Bell Helicopter recently signed a Memorandum of Understanding (MoU) with Bengaluru-based Dynamatic Technologies in which Dynamatic will act as a sub-contractor for its Bell 407 Air Frame Cabin Assembly, Air Frame Component and details. The estimated business volume of the work proposed is approximately $243 million over a tenyear period starting in 2013. Pointing out that Bell Helicopter was continuing its investment in India, Rishi Malhotra, Bell Helicopter’s General Manager in India also said that the Dynamatic tieup was an “important step forward in expanding our customer service, engineering and manufacturing capabilities in India”. The MoU, which is an important milestone in India’s rise as an industrial partner to the global aerospace industry, will build upon Dynamatic’s existing relationships with Airbus, Boeing, Spirit AeroSystems (Europe) and Hindustan Aeronautics and further strengthen its leadership position in the Indian aerospace industry.

white house

gen next: 'Marine One', the US Presidential helicopter

A new chopper for Obama, too Quite some time ago, the US Pentagon started a programme managed by the Navy and Marine Corps to replace the existing helicopters used to transport the President. Currently a mix of Sikorsky, part of United Technologies (UTX), made VH-3 and VH-60 aircraft are used. Some of them are over 40 years old. It was felt that a new system was needed that was more efficient, capable and equipped with modern communication equipment. This was the VH-71

programme. The VH-71 planned to use an aircraft from AgustaWestland modified by prime contractor Lockheed Martin (LMT). The programme was to proceed in two stages with a few aircraft bought early to test and integrate modifications. This proceeded with several aircraft purchased and modified. The problems arose as the requirements for the second effort changed considerably over time leading to schedule and Cruising Heights January 2013

cost growth. By 2009 the programme was several billion dollars over budget and was cancelled by the Obama Administration as part of the defence reforms. A draft RFP was released recently for the new programme. It planned to save money and manage schedule by requiring the use of an existing, in-production aircraft which will be modified. It requested that the bidders plan to minimize changes to expensive parts of the aircraft such as the power train, transmission, structure and rotor system. The VH-71 suffered as the requirements meant new major systems had to be developed and integrated to meet power, range and hovering capability requirements. The RFP is for 23 aircraft at a cost of just under a billion dollars with the first ones entering service in 2020. Currently, teams from Sikorsky and Lockheed and AgustaWestland and Northrop Grumman (NOC) are interested. Boeing (BA) may propose after doing analysis as to whether their large CH-47 or V-22 tilt rotor aircraft may meet the requirements.

business aviation

Working up a business Aircraft maintenance is not a high-profile business but the 60-year-old Mumbai-based Air Works Engineering, a leading provider of aircraft services, is extending its capabilities by broadening its activities and geographic spread.

fter a two-year recession, when business aviation is progressing towards growth in the country, the 60-year-old Mumbai-based Air Works Engineering, a leading provider of aircraft services with presence in 20 cities, is making endeavours to expand its business in India and abroad. The company’s Managing Director, Vivek Gour, under whose watch Air Works completed transition to a professionally-run company, informed: “We are now looking at doing heavier checks in India — one of the first in the country — as we will get certification, one-by-one, for the Bombardier series, Bell Helicopters and Hawker Pacific. The ‘deep level of heavy maintenance’ will encourage customers to get 8-10 and 16-year checks in India rather than at facilities abroad.” The top-line has grown from about `20 crore in FY07, when it was a familyrun outfit, to `271 crore in FY12. Gour is hoping to be able to end this financial year with `300 crore. His vision is to grow to a `1,000 crore company over the next four years. Air Works will now service Challenger 604/605 and Global Express/XRS business jets at Bombardier Aerospace’s 9,042-sq-ft line-maintenance facility at Delhi. It also operates a facility in Mumbai. “The two Air Works facilities are an important part of our overall network in India, anchored by our Mumbai regional support office. We continue to place a heavy focus on growing our local roots in key markets, and are pleased to collaborate with local partners,” said Eric Martel, Bombardier Aerospace President, Customer Services and specialised and amphibious aircraft. The road to success is never smooth sailing. Acquiring business from domestic airlines was the biggest challenge. Indian MRO outfits face the problem of exorbitant taxation — otherwise a recipe for Cruising Heights January 2013

business aviation

Empire Aviation gets first bizjet in India

mpire Aviation, a new division of Air Works India Engineering, has taken its first business jet under management in India. The aircraft, a 2012 Bombardier Challenger 300, will be based at HAL Airport in Bangalore, where Empire has opened its first office in India. This was the first of two business jets to be delivered to Empire Aviation in 2012 and the division expects to have a total of five aircraft under its management in India by mid-2013.

Paras Dhamecha, Executive Director of Empire Aviation commented: “We are delighted that our office in India is managing its first business jet in India and we are very confident that this new professional management service option will continue to attract new owners and aircraft to the fleet. The Bombardier Challenger 300 is a high performance super midsize corporate jet, offering transcontinental range, sophisticated technology and high levels of comfort, as well as rugged reliability, cost effective maintenance and strong residual values. So, it is a very good asset for an aircraft owner.”

disaster. “The 12 per cent service tax, 19 per cent import duty on spares and 36 per cent airport cess (in the western region) are designed to kill the industry,” said Gour. Airlines prefer to send their planes to Sri Lanka and Singapore rather than use Indian MROs. Interestingly, Air Works’ hangar in Manchester costs $57.5 per sq m per year, compared to the exhorbitant rents of $343 to $405 per sq m charged at major airports in India. “We are presently in discussions with Jet Aviation to view opportunities to synergize our business in India,” said Nick White, Vice President of General Aviation at Air Works. “When they send their jets to India, maybe we could support each other,” he added. Air Works is also looking to set up a

“Interiors is a unique business and there is almost no one in Asia who does it. India is rich in craftsman, rich in talent and in Dileep Chhabria (auto designer) we found a partner who is rich in artistic capabilities. So that’s when we said we must tie-up and build-up within India – labour-intensive work, create jobs in our country for craftsmen by building interiors business in this country.” Vivek Gour

MD, Air Works

hangar “that we could use as a base for customers in Chennai and Bangalore, in the south. Customers are becoming less willing to move aircraft long distances. For example, if there is no hangar in Delhi, the customer (based there) is unwilling to come to Mumbai,” said White. The company is looking at tax-free Dubai for its future expansion. Last year, in June, Air Works paid $30 million for a majority stake in Dubai-based Empire Aviation Services, which specialises in aircraft management, sales, charter and finance. This move will help Air Works increase its footprint in the Middle East. Said Empire Aviation Group (EAG) Co-Founder and Executive Director Paras Dhamecha, the move would “help facilitate our entry into India and allow us to exploit more fully the Indian market opportunity by replicating the full portfolio of aviation services for India that we have successfully developed for the Middle East.” It plans to build its first narrow bodysized hangar of around 3,000 sq m, for which land has been identified at Jebel Ali Airport. The facility, expected to be set up in three years, will service Indian clients initially. “We are looking at business jets, Cruising Heights January 2013

not commercial clients, as Emirates and Etihad already hold a big market (commercial domain) in the region,” said Gour. “We will invest with our own equity and will have the Empire advantage (with the government)…Here (in Dubai), heavy maintenance will be our first preference,” he added. Dubai will also afford the company easy access to spare parts known to be associated with major clearance issues in India. Also, the facility in Dubai will enable the company to offer across-theboard services “with holistic rates under one roof, occasionally some credit and flexibility”. But the positive aspect is that labour is cheap in India. Clients also save on ferry costs. If hangar rents were to come down in India, then it would be possible to do maintenance in India with a significant margin, as well as to attract international customers, said Gour. The company is working upon a new interior refurbishment business facility planned in Mumbai. Encompassing 7,000 sq ft, it will initially handle carpet cutting and edge binding, seat repair and overhaul, plastic repairs, seat cover manufacture in fabric and leather, leather seat cover reclamation, laminate replacement on sidewalls, ceiling panels, metalwork plating, wood veneer repair and relacquering and galley insert repairs. Speaking to Cruising Heights in April 2012, Gour had said that “Interiors is a unique business which is primarily done out of North America and Europe. There is almost no one in Asia who does it — with some very minor exceptions — and then you have groups in Europe and Australia who do it. So, anybody in India who owns a business jet flies all the way to Europe to get his interiors done. India is rich in craftsman, rich in talent and in Dileep Chhabria (auto designer) we found a partner who is rich in artistic capabilities. So that’s when we said we must tie-up and build-up within India — labour-intensive work, create jobs in India for craftsmen by building interiors business in this country.” Air Works’ international business also is increasing, Gour informed. The company recently commissioned a paint hangar under its Air Livery brand at the Bratislava airport in Slovakia. Gour also siad that another “really large” project related to an OEM outside India, “bigger than we have undertaken,” was on the cards. A major spurt could be coming come from the defence sector. The Indian Air Force is building its fleet of transport aircraft and tankers and Air Works is hoping to pitch for their maintenance with Punj Lloyd’s defence arm. 

Tribunal stays MIAL’s parking charge hike The recent stay by the Airports Economic Regulatory Authority (AERA) Appellate Tribunal on the Mumbai airport operator’s decision to increase aircraft parking charges for business aircraft came as a breather for business aircraft owners. This, incidentally, happens to be the first-ever application before the Appellate Tribunal invoking its original jurisdiction. The Business Aircrafts Operators Association (BAOA) had said in its application before the tribunal that the parking charges formed part of aeronautical services and an increase in tariff for aeronautical services fell within the jurisdiction of

the AERA. Though Mumbai International Airport Limited (MIAL) had approached AERA with the hike proposal, it did not wait for the regulator’s final word and decided to unilaterally increase and impose parking charges, 50 times higher than the usual hourly parking charges on general aviation aircraft in Mumbai. The MIAL counsel sought time to seek instructions in the matter. After hearing the parties, the tribunal directed MIAL to bring back the pre-hike parking rates that were approved by the Airports Authority of India (AAI) for general aviation aircraft for Mumbai Airport.

Airbus exhibits the ACJ318

Bombardier exhibits class-defining jets Bombardier Aerospace showcased three of its business jets — the Challenger 605, Challenger 850 and Global 5000 jets — at the recently-held Middle East Business Aviation (MEBA) show at Dubai’s Al Maktoum airport.

Airbus exhibited two corporate jets at the MEBA show, providing visitors an opportunity to witness the widest and tallest cabin of any business jet. They comprise an Airbus ACJ318 operated on VVIP charter flights by Al Jaber Aviation (AJA), and the ACJ319 of a private Middle East customer. Whereas other ACJ narrow-body bizliners have been outfitted with individually tailored interiors, the ACJ318 was offered in a number of interior options from the start, optimised for various duties, based on customer input and experience from the other family members. A number of developments from the larger family members have been incorporated into the ACJ318. While some are standard features, others are optional.

With this, the Bombardier Vision Flight Deck added another show to its world tour since it entered service in March 2012. Aboard the Global 6000 demonstrator it has accumulated over 550 flight hours, completed more than 235 legs and flown over 600 passengers a distance in excess of 400,000 km (248,548 miles). Some highlights include stops in Melbourne, Australia; Mumbai, India; Saint Maarten, Netherlands Antilles; Luxembourg; Split, Croatia and Anchorage, Alaska, USA. “The Middle East remains a solid market for business aviation, and this year's show saw us highlight our entire family of jets,” said Khader Mattar, Regional Vice President, Middle East, Africa and India.

First made-in-USA Phenom 300’s maiden flight

Unique app for bizjets

Inside the ACJ318

Embraer Executive Jets’ first made-in-theUSA Phenom 300 recently made its first flight on a day that also marked the anniversary of the maiden flight of the first Phenom 100 to be produced in the US. Delivery of the light Phenom 300 is scheduled to go to the Embraer Executive Jets’ Melbourne-based flight department which will use it as a flight demonstrator aircraft. “This is a major milestone for our facility,” said Phil Krull, Managing Director of Embraer’s US-based production facility.

“The reduction in production time to half of what it took for the first Phenom 100 means the processes we put in place for production have now matured. We are now on schedule to produce eight per month in the coming months as and when we require full production capacity.” In November 2012, it broke ground, inaugurating the construction of its newest venture in its aeronautical campus, the $26 million, 67,000-square-foot Embraer Engineering and Technology Center USA, expected to be completed in mid-2014.

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In what can be called an ‘industry first’ in the niche design field of business jets interiors, The Jet Business recently unveiled its application, an interactive tool, that allows customers to view a variety of interior fabrics and furnishings using a 3D replica of a business jet cabin. The London-based business jet showroom’s current version of the app features a Gulfstream 550, but other aircraft will be added, including Airbus, Boeing, Bombardier and Dassault types, informed founder Steve Varsano. The app, which uses proprietary software, is being offered to customers as a free service to help them narrow their choices when deciding on an aircraft to buy. “We want to make the process of buying a plane as easy as possible,” Varsano added.

business aviation

Charles Edelstenne, Dassault Aviation’s head has retired. Although no replaceCharles Edelstenne ment has been announced yet, but the succession is one of the most widely-followed personnel moves in France. Names in the frame include Dassault executives Eric Trappier, who has been instrumental in negotiating the sale of Rafale fighters to India, and Bernard Charles, who heads the enormously successful Dassault Systèmes business and whose 3D software has been instrumental in the design of Boeing aircraft, including the 777 and 787.

A fly-by-wire control system has been successfully tested by Diamond Aircraft for its twin-engine DA42, a light aircraft. The Austrian company which has created the system, considers this the first fly-by-wire system for an aircraft in the general aviation category. The four-axis fly-by-wire system was flown on the twin-engine aircraft as part of a European Union funded research project called small aircraft future avionics architecture (SAFAR), Diamond said. Diamond informed that the fly-by-wire system protects the flight envelope so the pilot cannot make unintentional flight manoeuvres that could lead to structural or aerodynamical overstressing of the aircraft. A digital computer interprets inputs by the pilot, and signals the control surfaces with the optimal movement.

200th Legacy600/650 aircraft delivered

Dubai’s plans for a new business aviation hub at the under-construction Dubai World Central or Maktoum International will get soaring high when Stuttgart-based DC Aviation opens the airport's first private jet hangar and fixed-base operation in April.

Graphic of the Dubai World Central

The 8,000m2 (86,100ft2) facility, which will offer aircraft handling, management, charter and maintenance, is a joint venture with Dubai-based trading and property conglomerate Al Futtaim. Work began in October 2012 on the site at the airport's Aviation City development.

Get set for the ‘Flying Palace’ instablogsimages.co

Embraer’s Legacy 600/650 programme delivered the 200th aircraft of the Legacy family, a Legacy 650 large executive jet, to China’s Minsheng Financial Leasing Co., Ltd. (MSFL), in a recent ceremony at its headquarters in Sao Paulo, Brazil. The aircraft, one of the 13 Legacy 650s ordered by MSFL in October 2011, will be used by an anonymous Chinese customer. As one of the largest financial institutions providing executive jets leasing services in China, MSFL ordered three Lineage 1000 ultra-large Lineage 1000 executive jets as well. “The Legacy 600/650 family has been well recognised by customers worldwide since the first Legacy 600 delivered in early 2002,” said Ernest Edwards, President, Embraer Executive Jets. “The delivery of the 200th aircraft of the Legacy family within a decade reflects the success of the Legacy programme. In addition, we are proud that Minsheng Financial Leasing, one of our most important customers, is part of this historic success by taking delivery of this aircraft.” The large Legacy 650 can accommodate up to 14 passengers in three distinctive and spacious cabin zones.

DC Aviation is DWC’s first tenant

Fly-by-wire tested on DA42 by Diamond Aircraft

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New head for Dassault in 2013

high class: Prince Alwaleed is upgrading his present plane to a customised super jumbo A380

Airbus Middle East President Habib Fekih has informed that Saudi billionaire Prince Alwaleed bin Talal will be taking

delivery of the world’s first customised A380 superjumbo. The customised jumbo — dubbed “The Flying Palace” — is estimated to be worth $485 million. “The A380 is planned for 2013,” confirmed Fekih. Prince Alwaleed’s super luxury A380 jumbo is believed to include four-poster beds, a Turkish bath, storage space for a Rolls-Royce, a boardroom, a concert hall, five suites with king-size beds, a prayer room featuring computer generated prayer mats which face Makkah and a lift between floors on all three levels.

Embraer delays Legacy 500 delivery to 2014 Even as Embraer cleared the first flight milestone for the first midsize business jet Legacy 500 to incorporate fly-bywire controls, the airframer postponed the delivery of the aircraft to 2014. Embraer informed that the 1 hour 45min flight evaluated handling and performance, including landing gear retraction. The company was forced to take an extra year of

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development to overcome problems with the fly-by-wire control system. Embraer and BAE Systems assumed control of the integration effort after subcontractor Parker Aerospace stumbled. This signifies a corresponding delay for the slightly smaller Legacy 450, scheduled to enter service one year after the Legacy 500.

Net Express

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“Three-star hotels drive online bookings in India”

Passengers are the king: Passengers aboard an aircraft. In times of consumerism, travellers want more than traditional searches and airline have to provide that.

IATA: New commerce channel by 2017

will be announced in early 2013. According to a recent study commissioned by IATA, The Future of Airline Distribution — A Look Ahead to 2017, and written by Henry H. Harteveldt, co-founder of Atmosphere Research Group, “Worldwide eCommerce sales will reach US$1.4 trillion in 2013, with double-digit CAGR expected and Travel is the largest eCommerce category, led by airline ticket sales.” Identifying and analysing such trends becomes especially indispensable in a technology aggressive country like India, Continued on Page 52

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n times when “consumer is the king”, airlines need to be prepared for information-demanding customers, who are certainly not going to be satisfied with traditional guarantees of lowest fare or time-consuming searches. To deal with this, airlines have to become agile distributors of content and information, a scenario that has led to extensive worldwide debate about distribution. Progressing in that direction, The International Air Transport Association (IATA) recently launched the New Distribution Capability (NDC). The pilot airlines for the scheme

INSIDE

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Airlines wanted commerce platforms that could support extensive fare and product transparency, dynamic pricing, rich basic and ancillary product merchandising and retailing, and the ability to reliably and securely process the massive volume of shopping sessions. A report.

The latest report by online travel site Goibibo.com that covers insights on hotel bookings on the internet in India, stated that three-star hotels were driving 50 per cent of the online bookings in the country within the tariff slab of `1,500-`3,500. The affordable average price point and online availability were the key reasons for travellers opting for this category of hotels. The report also shared insights on average price points of various star-rated hotels; break down of leisure versus business hotels booked online; customer segments and top destinations for business hotel bookings. While leisure hotels were found to comprise 56.41 per cent bookings, business hotels fell slightly back at 43.59 per cent. Bengaluru has been found to be the busiest business travel destination due to more online visibility of hotels from the city, followed by Mumbai and Hyderabad.

Etihad Wi-fly The carrier recently launched its new inflight net and mobile connectivity service

Auto Bag drop More than 10 m bags dropped using the Auto Bag Drop in Australia

Self Service World's busiest airport at Atlanta sets new records in self-service

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Continued from Page 51 where, according to reports, the online travel industry commands a 77 per cent share of the total e-Commerce market. The current estimated value of India’s online travel industry, in terms of annual revenue, is `37,890 crore. In terms of potential of the Indian market, this is just the tip of the iceberg. Competition is also responsible for turning travel portals into a better option than traditional travel agents or even direct booking. According to the IATA report: “The typical travel shopper visits 22 websites in “multiple shopping sessions” before booking a trip but “travellers relying solely on third party websites would not receive all the information needed to make a fully informed purchase decision.” Also “control is as important in booking flights as in buying a cup of coffee.”Add to that the fact that presently in India, online travel companies have been eyeing a slice of the customised holiday segment—typically a feature of traditional travel firms that directly interacts with tourists. This will lead to the race in the domestic market. The IATA report also pointed out that “passengers are more likely than the general population to own smartphones and tablet devices, with substantial growth expected due to these devices’ growing capabilities. Passengers show strong interest in using mobile devices to plan and book flights, illustrating their comfort with these devices”.

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“Distribution is no longer an adequate way to think about how airlines must sell their products” because ... “when airline executives instead are increasingly focussed on results —The Future of Airline Distribution —A Look Ahead to 2017

What's the cost? Per cent who agree with the statement “Staying within my budget is more important than going to my first-choice destination” China

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Brazil

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43%

40%

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33% 29%

Source: Atmosphere’s US Online Travell Benchmark Survey, Q3 2011; UK Online Traveller Survey, Q2 2012; France Online Traveller Survey, Q2 2012; Germany Online Traveller Survey, Q2 2012; China Online Traveller Survey, Q2 2012; Brazil Online Traveller Survey, Q2 2012

Cruising Heights January 2013

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“By 2017,” the study expected, “50 per cent of online direct bookings will be made on mobile devices — with even more ancillary purchases made through mobile, given the devices’ portability and ease of use”. This would be obvious in the light of the fact that in the digital world, where people spend more time online than on television, and have been empowering themselves through their extensive adoption of various consumer technology devices. This highlighted another fact mentioned in the report: “As the world’s airlines evaluate their distribution strategies, it’s essential to understand the mindset of your future base of customers, especially passengers between the ages of 22 and 35, or Generation Y (Gen Y).” Passengers in this age group have more disposable income. This is especially true in India. The study said that “airlines have morphed into retailers — true merchants of the skies. As merchants, airlines need systems that can help them not just distribute their flights, but merchandise their products and value across the channels that make sense — online and offline, direct and indirect — at sensible costs”. It went on to point out that “airlines don’t want distribution channels that present all airlines as equally substitutable commodities. Airlines want, and expect, their distribution partners to offer passengers helpful contextual information to make well-informed purchase decisions, reducing the number of reservations made based primarily or exclusively on price”. The IATA study also noted that “airlines want commerce platforms that can support extensive fare and product transparency, dynamic pricing, rich basic and ancillary product merchandising and retailing, and the ability to reliably and securely process the massive volume of shopping sessions. Importantly, airlines are also eager to see new providers enter the airline distribution/commerce space”. According to the study, “distribution is no longer an adequate way to think about how airlines must sell their products” because it implied process — “when airline executives instead are increasingly focussed on results. That’s why, by 2017, what airlines currently call ‘distribution’ will be replaced by a focus on channel-based, value-creating commerce.” This new commerce channel will come to be known as “Value Creation Hubs” (VCH), that will represent an evolutionary ‘pivot’ from the current GDS approach. VCHs will use the new-generation airline commerce technology infrastructure used to power airline CRS/PSS host systems, eCommerce solutions, and more, thus reducing the need for lengthy, costly disruption in a conversion.” n

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On the air with ‘Etihad Wi-Fly’

An agreement was recently signed in Manama between Bahrain’s national carrier Gulf Air and SITA, that will allow the carrier to use SITA’s network services to optimise its operations across 48 destinations where it operates. The agreement includes the provision of all private network, internet, voice, messaging and reporting services for Gulf Air. SITA will provide a variety of connectivity methods to the airline’s offices at airports in more than 20 countries across four continents. These will range from private MPLS-based connections to public internet connections and will include connectivity to Gulf Air’s air transport industry partners, a unique feature of SITA’s network which is embedded throughout its service net architecture. Through this optimisation the airline expects cost savings of up to 22 per cent in IP-related services at airports worldwide.

Etihad Airways recently launched its new ‘Etihad Wi-Fly’ in-flight internet and mobile connectivity service, powered by the Panasonic Avionics Global Communications Suite. The airline’s first aircraft equipped with Panasonic’s communications technology, an Airbus A330-200, recently took flight for Brussels, offering high-speed broadband internet connectivity as well as data and mobile phone services. The World in the sky: Passengers today A330-200 will be used for long-haul increasingly feel the need to use the internet even in the skies destinations across Etihad Airways’ network, such as Brussels, Dublin, Manchester, Munich, Frankfurt and Milan. James Hogan, Etihad Airways President and Chief Executive Officer, said that ‘Etihad Wi-Fly’ was a result of the 10-year, $1 billion agreement signed with Panasonic Avionics in November 2011. By the end of Q1 2013, “we will have 10 ‘Etihad Wi-Fly’-equipped aircraft, and I am pleased to announce that by the end of 2014, every single Etihad Airways aircraft will be equipped for in-flight connectivity”.

Amadeus, Virgin Australia sign full content agreement

etihadairways.com

More than 10 million bags have been successfully injected using the Auto Bag Drops at the six airports across Australia where ICM had delivered a successful roll-out of 80 Auto Bag Drop (ABD) systems for Qantas Airlines. The first of these units have been in operation since July 2010. The Auto Bag Drop unit automatically checks baggage weight and size allowances, prints a heavy bag tag if necessary, checks for non-conveyable and multiple bags, and securely inducts the bag into the baggage handling system. “This is a significant milestone. We are very pleased with the Auto Bag Drops ICM implemented in all of our major city airports. Providing a smarter, faster bag drop process has proven to be a big hit with our passengers.” said Gabriella D’Alessandro, IT Manager at Qantas.

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10 million Auto Bag Drops

A multi-year full content agreement has been signed by global travel industry technology partner Amadeus with Australian airline, Virgin Australia. Under this agreement — that will support the airline’s evolution into a full service offering and grow its corporate and International business — Amadeus subscribers worldwide will be guaranteed access to the carrier’s full range of fares, inventory and schedules. Also, Virgin Australia’s domestic and long haul schedules, fares, last seat availability and associated inventory will be available through the Amadeus system under the same conditions as that offered through the airline’s website and other distribution channels. The pact will also ensure Virgin Australia’s fares and schedules are available via many points of sale to better serve travellers. stay connected: A technology to use their tablets, computers and smart phones to access in-flight television and connect to the internet

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SITA-Gulf Air partner for operations

self help: The auto bag drop system at Brisbane airport

ICM’s Richard Dinkelmann, Managing Director of ICM Airport Technics Australia said: “We are very pleased with the success that Qantas has achieved operating the Auto Bag Drops. This is a great achievement and demonstrates the high level of satisfaction that customers have with the Auto Bag Drops”.

WestJet to test system for internet on mobiles Canadian Airlines WestJet CEO Gregg Saretsky informed that the carrier planned to test a new entertainment system that would allow passengers to use their tablets, computers and smart phones to access in-flight television and connect to the internet. A prototype was expected to fly some time in the first half of 2013. The new Cruising Heights January 2013

system could eventually lead the Calgarybased airline to do away with seat-back systems and shed about 1,200 pounds (544 kilograms) from each aircraft. The new permanent entertainment system would allow passengers to hook up their own devices to a network with about 1,000 movies, internet connectivity and a few live channels for sports and business.

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90 per cent São Paulo International Airport passengers want self-boarding

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A recently-published survey of passengers welcomed self-services passengers at airports around the that would ease their journey. world has found that nearly 90 per Interestingly, passengers at São cent of passengers using São Paulo Paulo have a higher level of interGuarulhos International Airport est in new baggage services than the would like to use self-boarding. global averages from the six leading This interest, along with a high airports surveyed. Some 88 per cent demand for new self-service bagliked to receive real-time baggage gage services, was among the key information on their mobile phones; findings of the annual SITA/ATW 79 per cent printed their own bag Passenger Self-Service Survey tags in contrast to a global average undertaken at the airport, which of 68 per cent; and 69 per cent used handles around 30 million passen- Self-boarding is the way: A scene at the busy São Paulo Guarself-service bag drops. In the unforulhos International Airport gers each year. tunate case of their bag being mishanThe desire for self-boarding had sengers and 86 per cent were interested in dled, a remarkable 92 per cent would risen by 66 per cent since the 2011 survey. using self-service kiosks to transfer flights, have liked to file a report at a kiosk and 83 Transferring to another flight was the a jump from 65 per cent last year. The per cent would be interested to do so using main cause of stress among São Paulo pasresults of this year’s survey indicated that their mobile phone.

Self-service scales new peak in Atlanta

Singapore Airlines low cost subsidiary Scoot has become the first airline in the world to adopt the agile and flexible data link management service powered by the Air Transport Industry (ATI) Cloud from IT provider SITA. The service manages the exchange of messages between the ground and cockpit, connecting airline users and applications to the aircraft. It is already in use at Scoot and will continue to be rolled out across the airline’s expanding fleet. Campbell Wilson, CEO, Scoot, said: “SITA’s cloud-based data link offering is ideal for Scoot. We are growing fast and need our data link services to be agile and

scoot and the cloud: Low cost carrier Scoot's plane taking off mysuburbannews.com.au

With a record 39 per cent of passengers using web check-in for flights, the world’s busiest airport, Hartsfield-Jackson Atlanta, has set new records in terms of self-service usage by passengers., add in self-service kiosk and mobile phone check-ins, and a grand total of 85 per cent of passengers avoided airport counters and used selfservice check-in signify a jump of more than 10 per cent since last year. According to the latest SITA/Air Transport World Passenger Self-Service Survey of leading international airports, web and kiosk check-in were still growing among users of the airport, but there were signs that they were reaching a plateau. Nevertheless, it remained a small part of the check-in mix for Atlanta passengers.

Scoot adopts cloud-based data link service

able to scale quickly while ensuring safety and efficiency throughout our operations.’’ “Selecting” SITA’s ATI Cloud service requires minimal resources from our side, minimising the staff and overheads that come with licencing, maintenance and support, he added.’’

Bluetooth-based queue measurement at Houston airports Yatra.com wins award A bluetooth-based, real-time queue measurement system has been installed at George Bush Intercontinental and William P. Hobby airports by the Houston Airport System. This system, launched across nine security checkpoints, uses bluetooth signals from mobile devices to measure real-time waiting times. This information is then updated every 15 minutes and displayed on the airport enhancing with technology: A bluetooth-based, real-time authority’s website. queue measurement system at a Houston airport “We are using technology to enhance the customer experience. We’ve equipped all eight checkpoints at our five terminals at Bush Intercontinental and our single checkpoint at Hobby with this online tool,” said Lisa Kent, Chief Information Officer, Houston Airport System.

Cruising Heights January 2013

Yatra.com has been adjudged the “Best Online Travel Brand” for the year 2012, the third time in a row by the CNBC Awaaz Travel Award. The travel portal received the coveted award for its contribution to the travel industry at a recently-held ceremony in Jammu and Kashmir. Dhruv Shringi, Co-founder and CEO, Yatra.com, said, “This award is clearly a testimony of the strong belief reposed in us by our customers. With the continued support of our customers, we thrive to be the most preferred travel partner, providing all travel solutions under one roof and thus creating happy travellers at every juncture.”

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Cruising heights www.cruisingheights.in | January 2013

IBS' GIANT LEAP FOR INDIA

A showcase of Indian IT expertise, the IBS-Lufthansa Cargo partnership could be the solution that air cargo carriers are looking for in these difficult times

GACAG ups the ante for e-cargo

ATF firms guilty of cartelization?

RGIA pushes for hub status

Roadmap for paperless air cargo created for industry's adoption of e-Cargo

Domestic airlines are levying fuel surcharge on cargo, alleges express industry

Hyderabad airport could turn into the much-awaited logistics hub of the country

Last in/first out

India to see 6 per cent freight growth

he International Air Transport Association (IATA) recently released the IATA Airline Industry Forecast 2012-2016. The prediction is that international freight volumes will grow at 3 per cent per annum to total 34.5 million tonnes in 2016. That is 4.8 million more tonnes of air cargo than the 29.6 million tonnes carried in 2011. Some of the highlights of the forecast: International freight volumes are expected to grow at a five-year CAGR of 3.0 per cent, which is the result of an upward growth trend over forecast period — starting at 1.4 per cent growth in 2012 and reaching 3.7 per cent in 2016. The five fastest growing international freight markets over the 2011-2016 period

will be Sir Lanka (8.7 per cent CAGR), Vietnam (7.4 per cent), Brazil (6.3 per cent), India (6.0 per cent) and Egypt (5.9 per cent). Five of the 10 fastest growing countries are in the Middle East North Africa (MENA) region, reflecting MENA’s growing importance in international air freight. By 2016, the largest international freight markets will be the United States (7.7 million tonnes), Germany (4.2 million tonnes), China (3.5 million tonnes), Hong Kong (3.2 million tonnes), Japan (2.9 million tonnes), the United Arab Emirates (2.5 million tonnes), the Republic of Korea (1.9 million tonnes), the United Kingdom (1.8 million tonnes), India (1.6 million tonnes) and the Netherlands (1.6 million tonnes).

“If I could change one thing, it would be for governments and airport authorities to appreciate the value of the industry, and reverse their detrimental policies that have impacted our competitiveness. These actions would help strengthen profitability as well as help attract the talent the industry desperately needs…Our partners should understand that IATA is there to cooperate and collaborate and certainly to serve our industry.”

Freight carriage within the Asia-Pacific region will account for around 30 per cent of the expected total increase in freight tonnage over the period. Commenting about the forecast, Tony Tyler, IATA’s Director General and CEO said: “Despite the current economic uncertainty, expected demand for connectivity remains strong. That’s good news for the global economy. Growing air transport links generate jobs and underpin economic growth in all economies. But exploiting these will require governments to recognise aviation’s value with policies that do not stifle innovation, tax regimes that do not punish success and investments to enable infrastructure to keep up with growth.”

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Des Vertannes

Global Head of Cargo, IATA, on his wishlist for 2013

Cruising Heights January 2013

TRENDS UPS recently revealed details of its work to reduce the fire risk posed by lithium batteries and other hazardous materials in aircraft. The company recently tested a prototype ULD design at the Federal Aviation Administration Technical Center in Atlantic City. The ULD contained a fire in which temperatures reached 1,200 degrees Fahrenheit for four hours. The ULD was loaded with 20 working laptops, 50 cell phones with batteries, 300 bulk-shipped lithium-ion batteries and an additional 190 packages containing a variety of items typically shipped through UPS. These containers have an aramid fiber-reinforced plastic skin, similar to the material used in bulletproof vests and other military applications, fitted over an aluminum frame. A fire-suppression aerosol system using potassium powder, originally developed for the Russian space programme, was installed onboard and prevented damage to 95 per cent of the packages. The laptops and cell phones still functioned after the test. UPS is currently testing 50 of the prototype containers for durability in live operations, with 50 more test containers entering operational testing before the end of the year. Assuming the ULDs perform as expected, the company will take a decision in 2013 about broader implementation. According to those associated with the project, the containers have other benefits, too. The fiber-reinforced panels are 40 per cent lighter than the polycarbonate panels that UPS uses on its ULDs, and are 60 per cent lighter than some aluminium components.

cargo

GACAG ups the ante for e-cargo

A ‘roadmap for paperless air cargo’ has been created by the Global Air Cargo Advisory Group (GACAG) to accelerate the industry’s adoption of e-Cargo in 2013.

aim to create an environment, by the end of 2015, where the core transportation documents are paperless on at least 80 per cent of the world’s trade lanes, and where the traditional cargo pouch accompanying the shipments would be removed for a large set of shipments. As part of this, a key goal will be to achieve 100 per cent e-AWB by the same timeframe. The move has been strongly welcomed by Des Vertannes, Head of Cargo for IATA, which began the e-cargo initiative. IATA is one of the four founding members of GACAG along with the International Federation of Freight Forwarders Associations (FIATA), the Global Shippers’ Forum (GSF), and The International

“This new roadmap will form the basis to manage the e-freight initiative moving forward and fully integrates the work done previously in the context of the e-freight project.” IN THE PIPELINE: A presentation in progress presenting GACAG e-freight roadmap at IATA E-cargo Conference.

he Group previously announced its intention to collaborate towards the vision of an end-to-end paperless transportation process for air cargo and the new GACAG e-freight Roadmap outlines the approach, scope, and overall plan the GACAG members intend to promote to bring that vision to reality. For the first time, the roadmap outlines a shared end-to-end industry approach, with clear leadership roles, around three core components, or pillars: ÊÊ Pillar I: Engaging regulators and governments worldwide to create an ‘e-freight route network’ with fully electronic customs procedures and where regulations support paperless shipments. ÊÊ Pillar II: Working collaboratively within the cargo supply chain to digi-

tize the core industry transport documents, starting with the air waybill. ÊÊ Pillar III: Developing a plan to digitise the commercial and special cargo documents typically accompanying air freight today, in or outside of the ‘Cargo pouch’ . Michael Steen, Chairman of GACAG, said, “This new roadmap will form the basis to manage the e-freight initiative moving forward and fully integrates the work done previously in the context of the e-freight project. It also identifies a number of areas where further work needs to be done in collaboration between the different associations that are members of GACAG and that represent the entire air cargo supply chain. This work includes standards, business process and other areas.” Using the roadmap, GACAG members Cruising Heights January 2013

Michael Steen

Chairman, GACAG Air Cargo Association (TIACA). He said, “This is a strong signal of the commitment of GACAG members to collaborate for an even safer, more secure, efficient and sustainable air cargo industry. The GACAG members hope that they will be joined in this vision by all forces in the global supply chain and look forward to working together with all concerned parties in this regard.” Bill Gottlieb, a past President of FIATA and former chair of the GACAG E-commerce Task Force, added, “The industry is now comprehensively united in our objectives and timelines for e-freight and e-AWB. This sends a huge message to all industry participants and I am comfortable that this will lead to significant acceleration in adoption of e-Cargo in 2013. This is a perfect example of how we can be stronger through dialogue and collaboration.” n

cargo

A giant leap for India, courtesy IBS The recent partnership deal between IBS and Lufthansa Cargo has come as a big boost to the Indian IT industry. The IBS benchmark for air cargo solutions will be one that could become a popular product. A report.

hen a visibly-elated V K Mathews, Executive Chairman of the Trivandrum-based IBS Group, declared, “To be chosen by an iconic airline like Lufthansa is a significant step in our endeavour to make iCargo the No.1 air cargo management solution in the world”, he was only emphasizing the fact that the IBS product could well turn out to be the solution that cargo carriers the world over need to look at in these difficult times. iCargo is IBS’ top cargo product that Lufthansa Cargo has opted for after trying out more than 400 IT solutions majors. As Roland Schütz, CIO of Lufthansa Cargo AG, put it in a conversation with Cruising Heights, IBS was chosen because it was a “clear differentiator” which was reflected in “the state-of-the-art architecture/technology as well as the skilled employees”. Further, iCargo remains “unique in offering consistent process support with its single platform ranging from sales processes to handling as well as ULD management and up to revenue

“Our strategy is the same for everyone (who comes to us). It is to help our customers and their business growth build solutions to actually help them transform themselves.” V K Mathews

Executive Chairman, IBS Group

BIG DEAL: Lufthansa Cargo has entered into contract with IBS Group for the implementation of iCargo solution.

Cruising Heights January 2013

accounting”. This mix of strengths, as Lufthansa outlined, “clearly convinced us” and the “decision is perceived as a major milestone towards materializing and enabling our joint visions.” Mathews the visionary, however, is looking at the future. “Aviation-wise,” he said, “I think the big challenge even now is that most of the airlines and most of the (IT) systems (they use) are still legacy.” Indeed, even Lufthansa uses the legacy Unisysbased MOSAIK application that is at least 30-odd years old. However, said Mathews, a significant transformation has been taking place He went to give the example of one of the past projects IBS had completed successfully: “When we did the project for Qantas, it took four years to replace 36 systems by one system of IBS. And it was a single logistics transformation successfully done in 30 years for Qantas.” As for the partnership with Lufthansa Cargo, “it is a very, very large implementation. The project cost is `700 crores or Euros 100 million and it will be completed in two-three years.”

IBS’ vision is simple: it wants to redefine business. “Our strategy is the same for everyone (who comes to us),” said Mathews. “It is to help our customers and their business growth… build solutions to actually help them transform themselves. He pointed out that the future freight strategy of Lufthansa was based on three distinct pillars. “One, Lufthansa’s future depends on how good aeroplanes they can source so that they have fuel efficiency, operation efficiency, reliability and capacity. The second one is going to depend on how big a hub Frankfurt will become and third, their future business is going to depend on how smart their IT platform is going to be.” Sankalp Saxena, President and Head of Aviation Operations Services, was certain that moves like Lufthansa’s to enhance IT services, would be able to rescue the aviation industry from recession by bringing about efficiency, faster processes, etc. “There certainly are IT efficiencies which can help drive returns directly to the bottomlines of carriers. These augment, for example, the savings carriers are looking at leveraging as they replace old aircraft with more fuel-efficient ones. The adoption of e-Freight, which in itself can deliver both cost efficiencies and enhanced customer delight, is one such IT initiative. On the cost front, redundancies in the paper chain are significant, cumbersome and error prone.” The collective impact, he said, of these parameters introduce inefficiency and a lack of transparency. On the customer delight front, electronic document chains will not only help enhance forward visibility to customers but will also enable carriers to provide predictive notifications on shipments vis-a-vis the agreed to Service level agreements (SLAs) for shipments. The iCargo product, built in collaboration with five leading carriers, is an integrated new-generation solution suite of seven modules designed to handle the cargo management requirements of full freighter carriers, passenger and cargo combination carriers, ground handling agents and airports. It is a comprehensive solution covering Cargo Sales and Reservations, Terminal Operations, Mail Management and Accounting, Cargo Revenue Accounting, Cargo Revenue Management and ULD Management. iCargo is fully compliant with IATA initiatives such as Cargo 2000 and e-Freight and has been adopted by over 20 global customers like All Nippon Airways, Jet Blue Cargo, Nippon Cargo Airlines, Qantas and South African Airways, Saxena informed. For Lufthansa, replacing a legacy system and relying on IBS, an Indian IT company’s product, is a giant stride for the country’s IT industry. V K Mathews clarified that while for the services sector, sourcing more deals

TECH-SAVVY MOVE: Lufthansa Cargo's hub at Frankfurt International Airport.

“The adoption of e-Freight, which in itself can deliver both cost efficiencies and enhanced customer delight, is one such IT initiative. On the cost front, redundancies in the paper chain are significant, cumbersome and error prone.” Sankalp Saxena

President and Head of Aviation Operations Services, IBS Group

Cruising Heights January 2013

was the strategy to growth, in this case, “the conceivers and the designers are an Indian company. That is the difference”. News like this would not have created waves if the company was from the US, “because they have done it. (But it is big news) For an Indian company, (since) we have not done it”, said Mathews. The partnership was akin to saying that the country with a high level of expertise had to turn to an Indian company for its special needs — and that too after looking at a huge number of options including building the system themselves. From an IBS perspective, the IT business for the aviation sector in the coming years, could only see a growth. Said Saxena, “We are bullish on the IT spend in the aviation sector over the next several years.” Aware about the business, Saxena said his sentiment was based on several parameters. He explained that the first of these parameters was the replacement cycle of legacy systems. “These systems have outlived their useful life and the cost burden of maintaining them is putting carriers at a distinct disadvantage as legacy systems do not the flexibility and agility to respond to new industry/market drivers.” The second comprised new standards and initiatives. E-Frieght is one such example where carriers could drive cost inefficiencies out of their supply chain. “The failure to adopt such new initiatives would cost a penalty not only from an operational perspective but also from a customer differentiation/experience perspective,” said Saxena. The third point that Saxena made was on global competitiveness that required further optimization of capacity utilization. “As carriers expand their global routes/ reach, additional capacities are being added which are resulting in competitive pricing pressures in certain geographies. Ensuring that idle capacity is minimised essential in ensuring route profitability and new generation solutions which provide significant business analytics and price optimisation algorithms are an essential ingredient for success,” he said. One important take-away from the IBS move is the acknowledgement of India’s expertise in the industry. “A significance of this (Lufthansa partnership) association is that it demonstrates or it is actually the beginning of a new era for the Indian IT industry where Western companies seriously look at India for products. I do not think any product from India has been sourced by a developed world company during the last 10 years of this magnitude,” said Mathew, “which would transform a company like Lufthansa’s freight business, which is one of the biggest in the world. It is the largest in Europe.”n

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Is there need for dedicated freighters? D J Ghosh

In the present scenario, the business model being leveraged by dedicated cargo airlines world over is being questioned for its viability and sustainability, comments D J Ghosh.

With the industry in the throes of one of its deepest down cycles — with multiple cargo-airline failures worldwide and even industry stalwarts like Cargolux questioning their business model 60

lot has changed on the world stage in the last few months. Suddenly, it looks as though the ‘gray beards’ of this industry are switching positions to make it appear that, all along, they have argued that the business case for dedicated cargo airlines never existed in the first place. With the industry in the throes of one of its deepest down cycles — with multiple cargo-airline failures worldwide and even industry stalwarts like Cargolux questioning their business model — the business case for freighters appears to be in serious trouble. The ranks of people saying, “I told you that dedicated freighters would never work,” are growing by the day. Dr Karl Ulrich Garnadt, CEO and Chairman of Lufthansa Cargo, was quoted in Flying Typers as saying, “The iron rule is that airlines can operate profitably only when utilisation is high — and where that is not possible, we cut back on capacity.” It hasn’t helped the business case for freighters when industry captains like Neel Shah, formerly of Delta Airline Cargo and an avid freighter cutter, have publicly stated that “yields cannot support these aircraft. The only people who should be flying them are FedEx and UPS.” In this case, it appears that the air cargo industry is drifting rudderless and leaderless into a future of quiet desperation, without ever having made a serious effort to study its true potential. If nothing is done, we may soon become irrelevant, if not extinct. The captains of this industry will deny a lot of what is afflicting us today, shrugging it off as a consequence of a distressed world economy. They will blame the stagnating and indebted economies of Europe, the high unemployment rate in the USA, and a slowdown in the Chinese and Indian economic engines. The truth of the matter is that the anxieties of the air cargo business can be attributed less to the world’s problems and more to the fact that the industry has been in a state of denial. The air-cargo industry has had a serious problem Cruising Heights January 2013

and has never really made a determined effort to define its value proposition. Air cargo, a $70-billion-plus industry today, has never really taken the time to re-invent itself as a stand-alone business. A classic example of this is Lufthansa’s problems with the night ban at Frankfurt airport. While we all know that Frankfurt is Lufthansa’s biggest cargo hub, if it does not act soon, it could also become Lufthansa’s biggest headache. In spite of the fact that the advocates of the night ban are getting more entrenched in their positions, supported by a court decision, Lufthansa continues to be in denial. Lufthansa thinks that a marketing campaign outlining the benefits that air cargo brings will help placate the night-ban advocates and overturn this ban. Lufthansa’s Frankfurt problem may soon become a problem at every major hub in every major world metropolis. Instead of denying the problem or fighting it, the large freighter operators need to gradually wean their businesses away from hub airports and toward smaller rural airports, which are immune to noise restrictions. This would rapidly re-invent and establish a strong business case for dedicated cargo airports and provide a sound platform for a new all-cargo model. Joseph Czyzyk’s earlier comments that the world is headed toward commodity pricing reflects the inertia in this industry when it comes to researching and studying individual products and creating value propositions and service parameters around each of them. To state it bluntly, commodity pricing reflects the thinking of individuals or companies who are lazy and have spent very little time or effort studying the unique items that they transport. Instead of investing in attending industry seminars and symposia to learn about the unique characteristics of each product they transport, they quickly lump together very different items as ‘generalcargo.’ The sad truth is that yields and profits come not from generalisation, but through specialisation. Consequently, this industry needs more specialists and fewer generalists.

Nobody has ever dared say this in a public forum, but the biggest problem with the air cargo business is that it has evolved without a grand master plan. As air cargo volumes surged through the seventies, eighties, and nineties, airlines added widebody capacity at a rate that would shock even the most inexperienced investor. Legacy carriers have survived these errors due to their passenger balance sheets. Independent cargo airlines without this luxury have folded ignominiously. The only way that the independent air cargo airline business should have ever been launched is by defining a value proposition for every type of cargo, thus creating a revenue model, and never proceeding even one step forward unless all profit parameters were met. No airline should have ever been allowed to purchase an aircraft without having firm long-term commitments from customers such as forwarders and shippers. Everyone, and I mean everyone, needs to have skin in the game. And airlines need to have a clear plan on how they intend to finance and operate the aircraft over the lease term. Indeed, if we could do it all over again, the best way to start an independent cargo airline would be by starting small, very small, with the smallest-size freighters. With the lower financial risk that this would entail, operators could gradually develop a profitable customer base, customise it, and then gradually scale it.They could develop purpose-driven freighters for special products or customers, customising each freighter to suit the needs of the customer. The only way they should allow themselves to grow bigger and into larger freighter types would be based on a pro-forma or template of guaranteed profitable operations. Very few new cargo airlines will have the financial strength to withstand the cyclical nature of the air cargo business without serious long-term financial backing or the support of a proverbial “rich uncle.” At the end of the day, a new cargo airline is a new business, and like a new business, it must prove itself, develop a business case, and establish a value proposition. To do this takes time and money — lots of money. Furthermore, the business case needs to be unique and worthy of a higher rate to compete with the commodity-style pricing of belly carriers. In a way, the integrators like FedEx and UPS should become role models. New cargo airline entrants should start small and concentrate on the highest-revenue freight, gradually building their business case around it before moving to larger-gauge aircraft. Whether we like it or not, 80 per cent of the world’s freight is still controlled by the world’s 20 large forwarders who control pricing. Most of this freight will move on a commoditised basis and will flow to the lowest-cost providers. The business model for a new or existing operator in this space is very simple. Partner with multiple major carriers or forwarders by entering into

long-term contracts of 10-to-12-year duration, nothing less. Ensure that your contracts match your aircraft-lease terms. If they pay rock-bottom prices, make sure they give you a long-term contract with a guaranteed margin over cost. Do not place an asset unless you have this contract in place. Own or control the asset. Get paid a fixed fee per operation. Keep a simple fleet type. Achieve high utilisation of your aircraft and human resources. Maintain low overhead. Don’t take revenue risk, and don’t take fuel risk. Most people in the industry refer to this as ACMI. We call it common sense and the only way to stay out of bankruptcy court and make a decent margin. For the foreseeable future, passenger bellies with their below-cost pricing will continue to undercut freighter operators and make their lives miserable. The substantial belly lift that the wide-body A340, B777, and the B787 passenger aircraft provide on a scheduled basis will continue to make the business case for dedicated freighters more difficult. However, as history has shown, no matter how unprofitable they are, freighters have always been a mainstay of the business and will continue to grow their share from the current 50/50 split. As the PowerPoint presentations from the Seabury group have shown, some major trade lanes, including North to South America and Asia to Europe, are still dominated by freighters. As long as Boeing and Airbus build passenger aircraft with large bellies, freighter operators will have to scratch their heads to find ways to make money. But there is still plenty of hope. So don’t rush out to write off the dedicated-freighter business yet. Even though air cargo growth rates have tempered to 3.6 per cent over the last decade from the headier growth rates of the previous three decades, the business of air cargo is still growing. Boeing and Airbus forecasts may have been overly optimistic and may have driven the industry to over order freighter capacity, but there is still much optimism to be mined in this business. As the business grows, we predict that the air cargo industry will fragment and become a more niche and specialised business. As smaller product groups grow larger, they will demand their own space and service parameters, as well as their own routes. The passenger business model with the large bellies and regular schedules may still not be able to fully cater to the age of the new air cargo specialist. This is the opportunity that the new air cargo entrepreneur has been waiting for. For the visionaries of the air cargo universe, with well-researched and bespoke cargo offerings, the games have just begun. n (The columnist is President, American Friendship Cargo. Web address: www.aircargopedia.com) Cruising Heights January 2013

Very few new cargo airlines will have the financial strength to withstand the cyclical nature of the air cargo business without serious long-term financial backing 61

cargo

Express industry alleges cartelization Domestic airlines have been arbitrarily levying fuel surcharge on cargo which has been objected to by the Express Industry Council of India. same time. This has led us to believe that this action has been taken in concert,” said Vijay Kumar, Chief Operating Officer, Express Industry Council of India. He added, “Though designed to mitigate the fuel price volatility, FSC has been used as a pricing tool to harm the interests of express companies, freight forwarders and ultimately the end user. Internationally, fuel surcharges are benchmarked to an index. This ensures that airlines will not charge more when the fuel price goes up and at the same time fuel surcharge is reduced when prices go down.” Initially all airlines had levied a charge of Rs 5 per kg as FSC on May 15, 2008 without justifying the rationale behind the move. The FSC has been revised by around 15 per cent by the airlines in November 2012, while the industry witnessed a fall in fuel prices from what was prevailing in September 2012 when the FSC was last revised. In May 2008, when FSC was first introduced the fuel price was Rs 69227 and FSC charged by the airlines was Rs 5 per kg. During the recent hike, again acting in concert, on November 19, the fuel price was Rs 68397 and the FSC charged was Rs 15 per kg. n

in the dock: Fuel being pumped in an aircraft.

in fuel surcharge, which has not been commensurate to the highly volatile Air Turbine Fuel (ATF) prices. With effect from November 19, 2012, domestic airlines have further increased the FSC on cargo by Rs 2 per kg in spite of a marked drop in ATF prices. “What has been surprising is that all airlines have chosen to increase the FSC by the same amount more or less at the

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he Express Industry Council of India (EICI), the apex industry body of express companies, has alleged that domestic airlines have formed a price cartel that is exploiting the levy of fuel surcharge (FSC) on cargo by not applying a rational pricing mechanism for the same. According to EICI findings, in the last four years there has been a substantial hike

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01 Oct 12

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67047.0

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16 Nov 11

62310.3

Cruising Heights January 2013

RGIA pushes for hub status With its sophisticated infrastructure, the GMR-led international airport at Hyderabad could turn into the much-awaited logistics hub of the country and foreign cargo carriers would be able to save on whopping fuel expenses if it uses the airport as a hub. A report

he air cargo business in India continues to go in favour of the international carriers that have built hubs in Hong Kong or Dubai or Singapore. The lack of a hub within the country has, therefore, stymied the growth of the air cargo sector and today there is a large number of stakeholders who feel that there is an urgent need for the development of a logistic hub for air cargo. Not too long ago, the international airports had little to boast about in terms of infrastructure. However, that was yesterday. Now, the country can justifiably speak with pride about at least four airports — the ones in Delhi, Mumbai, Chennai, Bangalore and Hyderabad — that can be compared to any around the developed world. Of these, the airport at Hyderabad has acquired a special status for its sophisticated infrastructure for cargo. To top it all, the airport has the geographical advantage of being somewhat centrally located: more than 20 major Indian and south Asian cities are less than two hours flying time away while Singapore, Kuala Lumpur and Bangkok, and Dubai and other hubs in the Gulf are four hours away. It is no wonder that the airport is being touted as the cargo hub of the country. D P Hemanth, COO (Hub Development, Cargo, Free Trade Zone) of GMR Hyderabad International Airport Limited (GHIAL), which operates the Hyderabad airport, is of the opinion that exports and imports could be cheaper if a cargo hub is used. He has calculated a saving $150,000 on each international freighter coming through any of the international airports in the country. He cited the instance of a B747 or an A380 flying in with a cargo load from Frankfurt to India. It drops its first load at Delhi, flies on for two hours to Bangalore to drop another load and then jets on to Mumbai before flying back to Frankfurt. If a widebodied freighter uses at least $25,000 worth of ATF for an hour’s flying time, it would mean an expense of $150,000. “This,” he said “is what is happening now” because there is no hub. If the wide-bodies could fly in to a central point in the country, and

GEARING UP TO BE THE BEST: Inside view of cargo terminal at Hyderabad airport

the goods could be sent out from there by road, rail and domestic freighter services, the amount saved on the big aircraft going from one airport to another would be quite a lot. The COO, however, was categorical that this saving could be achieved if the infrastructure could be improved. Among the improvements are 24x7 custom clearance and the reduction in the import dwell time that was between five to six days in India against the half an hour in Dubai or Singapore. The potential was high, because around 10 per cent of the country's exports were carried by air but in terms of value, it amounted to 40 per cent or a whopping $6 billion (`320 billion) since air was the preferred mode of transport for high value and perishable goods. Hyderabad’s Rajiv Gandhi International Airport has enough reasons for the hype. The recession has not touched the airport: in fact, while airports around the world showed no growth, the Hyderabad airport has grown by 10 per cent. The airport has scaled up its terminal capacity. It recently opened a new cargo apron in a bid to accommodate larger aircraft nearer to its pharma zone and boost its position as the country’s Cruising Heights January 2013

pharmaceutical hub. The new apron space, can accommodate wide-bodied and heavier freighters, such as B747-8F and B747-400F aircraft and the A380. What is, however, lacking is a domestic carrier to service the big birds landing at Hyderabad. Talks are on with a number of interested operators and when that is through, the Rajiv Gandhi airport could well serve as the country’s air cargo hub. Recently, the airport was honoured with the “Best Cargo Airport and Best Cargo Terminal of the Year” award during the recent 39th annual convention of ACAAI (Air Cargo Agents Association of India) held in Istanbul. Speaking on the occasion, Vikram Jaisinghani, CEO of GMR Hyderabad International Airport Ltd (GHIAL) said, “it is an honour and a prestigious moment for RGIA to be nominated and recognised by our customers and stakeholders across the spectrum like EXIM bodies, freight forwarders, handling agents, three PL players and logistics players. The award truly recognises the sincere efforts and the progressive initiatives taken by RGIA, which further motivates us to achieve many more milestones.” n

cargo jottings Tiruchi airport to get cold storage facility

The Air Cargo Complex at Tiruchi Airport will soon have a fivetonne capacity cold storage facility for storing perishables. The cold storage is being established with the assistance of Agricultural and Processed Food Products Export Development Authority (APEDA). The facility would come up as soon as essential sanctions were issued by the Airports Authority of India (AAI). The air cargo complex will get the Electronic Data Interchange (EDI) facility for quick dispensation and clearance of export/import procedure. “Efforts were underway in association with the Customs Department to get the facility, also by March end,” Airport Director S Dharmaraj said. “Given the facilities available and 43 international flights a week, there was big scope for increasing cargo exports and imports through the airport, which caters to about 14 districts around Tiruchi.” S Subramanian, Manager, Cargo, Tiruchi Airport, said, “Bonded trucking service was introduced, which gives possibility for export and import of cargo through other major airports in the country. The air cargo complex had trained manpower to handle hazardous cargo too. The complex had achieved quick turnaround time of both export and import cargo and there was no procedural delays.”

Lohegaon: A cargo hub in the making

Airports Authority of India (AAI) has been instructed to put forward a proposal for possession of land to develop a cargo hub and other infrastructure facilities near the Lohegaon airport in Pune. District Collector, Pune, Vikas Deshmukh said that “a survey was conducted recently and around eight acres (3.5 hectare) land near the airport was identified for the purpose. The AAI's plan to start a cargo hub and other facilities has been facing shortage of space. Now, we have identified the land. As per the land acquisition law, the AAI has to submit a proposal for land acquisition to the district administration.”

Boeing drives humanitarian efforts

Boeing partnered with Emirates and SpaandanB to transport relief supplies on board the airlines’ newly-delivered 777-300ER (Extended Range) to those in need in Bangladesh. The relief shipment comprised 10,455 kilos of winter clothing especially for those living in the western part of Bangladesh which experiences severe winters. The shipment also included educational supplies for children. Boeing and Emirates joined hands with non-profit organization SpaandanB whose mission is to bring about socio-economic change among the less-privileged people in Bangladesh by addressing their education needs and health services. “Boeing, through its Global

Awards Best cargo airport: Hyderabad

Recently, Rajiv Gandhi International Airport has been honoured with the “Best Cargo Airport and Best Cargo Terminal of the Year” Award. The Air Cargo Agents Association of India (ACAAI) during its 39th Annual Convention held at Istanbul on November 22-25, 2012, announced this award. Vikram Jaisinghani, CEO, GMR Hyderabad International Airport Ltd (GHIAL) said, “It is an honour and a prestigious moment for RGIA to be nominated and recognised by our customers and stakeholders across the spectrum like EXIM bodies, freight forwarders, handling agents, 3 PL players and logistics players. The award truly recognises the sincere efforts and the progressive initiatives taken by RGIA, which further motivates us to achieve many

ALTRUISM PERSONIFIED: Emirates relief flight heading for Bangladesh.

Corporate Citizenship (GCC) organisation, supports relief efforts around the world in partnership with non-governmental agencies like SpaandanB. Through these collaborative efforts, and with our airline partners, we bring relief and hope to people in need,” said Liz Warman, Global Corporate Citizenship Northwest Director. Said Ram Menen, Divisional Senior Vice-President, Emirates SkyCargo, “Emirates is committed to support humanitarian efforts and providing cargo space for the relief shipment for those in need in Bangladesh onboard our delivery flight is something we were happy to endorse.”

UPS employees clock 26,000 hours

Since its founding in 1907, UPS has established a strong legacy of support to the communities it serves. The company’s commitment is especially evident during its annual Global Volunteer Month, which took place during the month of October. This year, which marks the 10th anniversary of Global Volunteer Month, UPS enlisted nearly 400,000 employees globally to pledge 195,000 volunteer hours during the month. In Asia, about 5,700 employees, with their families and friends volunteered over 26,000 hours of service. Through The UPS Foundation, over $1.7 million in grants and charitable giving were also distributed to about 50 non-profit organizations within the AsiaPacific region in 2012. Many of these grant beneficiaries have been organisations with whom UPS employees volunteer. “UPS has always embraced the philosophy of giving back to the community through volunteerism, and has been making incre-

more milestones towards our vision of transforming RGIA into a ‘Logistics Hub of India’.” World’s best cargo carrier: The Global Traveler magazine has hailed the airline as the world’s best cargo carrier. The prize was presented to the company at a gala awards ceremony in Los Angeles. Dr Andreas Otto, Lufthansa Cargo Board Member Product and Sales, emphasized, “It is a great honour to be chosen as Number One among the world’s cargo carriers and, simultaneously, an incentive for the entire team to continue convincing customers with the highest quality and performance.” The Global Traveler awards were conferred in 2012 for the ninth year in a row after a survey of the magazine’s readers. The readers, largely decision-makers from diverse industries, cast their votes in a total of 71 categories, among them airlines and hotels.

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mental investments in resources to ensure we are contributing to Asia’s development and growth at the pace it demands,” said Pete Elroy, Vice President, Human Resources, UPS Asia-Pacific Region. “From the 2,400 employees that volunteered 10 years ago in the inaugural volunteer month, we are very pleased to share that nearly 5,700 Asia-Pacific employees, along with their families and friends have contributed their hours in making their communities more environmentally sustainable this year. We look forward to delivering more in the years to come.”

CAG increases support for air cargo

Changi Airport Group (CAG) announced that it was increasing its support for the air cargo sector in the face of continuing headwinds for the air freight business. For the first six months of 2013, rebates for landing fees at Changi Airport have been raised to 50 per cent for all scheduled freighter flights. In March 2012, CAG announced a S$15-million cargo support package for FY2012/13 consisting of a 20 per cent landing fee rebate for freighter flights, partnership funding support for new cargo development initiatives, as well as up to 20 per cent rental rebates for cargo tenants leasing CAG cargo facilities at the Changi Airfreight Centre 2. Said Lee Seow Hiang, CAG’s Chief Executive Officer, “Our cargo industry partners have expressed continued concern about the outlook for the sector given the ongoing uncertainty about the health of the world’s major economies. Hence, CAG has decided to provide this additional support to moderate operating costs for cargo airlines at Changi Airport. This is our commitment to building strong partnerships, in good times as well as bad.” Noor Azizah Aziz, Cargolux Airlines International’s Country Manager, Singapore, said, “This additional rebate is definitely a welcomed move in these challenging times. It also shows that CAG is keeping in close touch with the realities of the industry.”

Dholakia calls for better practices in cargo

Uday K Dholakia, Brand Ambassador for Birmingham Airport was the keynote speaker at the annual Air Cargo Agents Association of India (ACAAI) held in Istanbul, Turkey. Dholakia called for the enhancement of e-freight and highlighted the growing strength at regional airports like Birmingham to offer cargo agents belly-hold and pure freighter opportunities. “In an e-commerce environment,” said Dholakia “e-freight, intelligent regulation and supplier chain partnerships have to be underU K Dholakia pinned by all the nodal partners accepting accountability. The just time value proposition has to add real value to cargo users and give quick, efficient and accountable access to supplier chain clusters like food and drink and automotive components in the Midlands and India”. Dholakia talked about the commitment of the UK government to better regulation and the concept of a primary authority, where a single regulatory authority took responsibility to give users a unified and consistent regulatory frame work. Dholakia, as Chairman of Indo British Trade Council had led a conference based dialogue with all the UK regulators and the Indian High Commission in London to develop a better regulation frame work around food and spice imports. “Better regulation and accountability offers the cargo industry a better environment to enhance bilateral trade via regional connectivity offered by Emirates, Turkish Airlines to regional airports like Birmingham,” said Dholakia.

FedEx sees ‘Busiest Day of the Year’

FedEx Express recently witnessed the busiest day in the history of the company. Between the last week of November and Christmas, FedEx delivered more than 280 million shipments to move through its worldwide shipping networks. This was a 13 per cent increase for the Christmas season over last year when 247 million shipments were processed. In Europe, Middle East, Indian Subcontinent and Africa (EMEA), the busiest day for FedEx Express shipments going out from the region was on December 18, which represented an increase of 6 per cent over last year. “Our FedEx Express EMEA network is once again ready to support the high volume of deliveries expected this year,” said Gerald P Leary, President of FedEx Express in Europe, Middle East, Indian Subcontinent and Africa (EMEA). “This is possible thanks to the commitment of our team members across the region and globally to provide exceptional customer service, especially during our busiest season.” Delivering the human touch: FedEx Express recently launched a new multimarket marketing and advertising campaign that pays tribute to the hundreds of thousands of team members worldwide who are responsible for powering the infrastructure, processes and technologies that drive the FedEx worldwide network. “The most successful businesses are those which are built on strong relationships; and relationships by their very nature are built on people. That is why we have launched the ‘Solutions Powered by People’ campaign. Our 300,000 dedicated team members across the globe work tirelessly to connect business leaders to the people, places and opportunities that will help them succeed,” said Nathalie Amiel-Ferrault, Vice President, Customer Experience-Europe, Middle East, Indian subcontinent and Africa, FedEx. With print and online advertising appearing pan-regionally and in local markets around the world from November 2012, the campaign will be supported by a series of bespoke pages on the recently-redesigned fedex.com website. Business leaders can find supplementary content and information about innovative transportation solutions as they seek to expand their businesses beyond their own borders. Whether it’s a critical vaccine that will save lives or an important business contract that needs to reach its end destination the next day, FedEx has a range of solutions to help businesses of all sizes.

Cruising Heights January 2013

globetrotting n  Felony off-board

n  Impersonating woman

In a bizarre incident, an off-duty flight attendant helped her boyfriend to allegedly steal an iPhone from another passenger. The JetBlue flight attendant and her boyfriend were waiting to go through security on their way when the boyfriend sneaked an iPhone left in a bin. According to police, the device's owner had put the phone in the bin while he passed through the metal detector. A few minutes later the owner, who had been standing in front of attendant’s boyfriend, realised his iPhone was missing and told the Transportation Security Adminstration agent who called the Port Authority cops. Reviewing security footage, authori-

A man holding a wrong boarding pass ended up passing through airport security and even onto a plane. Charles Bailey, a frequent flyer checked in his bags and picked up his boarding pass before heading to security. “When I handed it to the woman,” said Bailey, “she handed it back. Then I proceeded to the last security checkpoint.” The security person checked it and initialled it. “He gave the driver's licence and boarding pass back to me,” stated Bailey. “I went to that line and I went through security to get to the gate as per normal.” About to board his plane at the

ties saw the attendant’s boyfriend stealing the iPhone. The young man was taken off to be identified by the phone's owner while the attendant went into the restroom. Later, the boyfriend confessed but he was charged with petty theft and criminal possession of stolen property.

n  Art confiscation

n  Jam session at airport

A man from Southern California was arrested at Oakland International Airport, after security officers found him wearing an unusual watch. Geoffrey McGann was taken into custody after he tried to pass through airport security with an ornate watch that had switches, wires and fuses. D Nelson, spokesman for the Alameda County Sheriff's Department, US, said, “A bomb squad arrived within five minutes and determined there were no explosive materials in the watch. The checkpoint was closed while officers secured the area. McGann was taken to Santa Rita Jail in Dublin where he was charged with possessing materials to make an explosive device.” “Transportation Security Administration Officers said that he's an artist and the watch is art. While no actual explosives were found, McGann was carrying potentially dangerous materials and appeared to have made alterations to his boots, which were unusually large and stuffed with layers of insoles,” added Nelson.

Believe it or not, Gloucestershire Airport at Staverton in England found a unique way to ward off birds from its runways. It happened when one day when speakers that normally played bird distress noises, failed to work. The staff in search of an alternative turned the tape player on to play Tina Turner and discovered that the diva's powerful voice was just as effective. Head of Operations, Gloucestershire Airport, Darren Lewington told the Gloucestershire Echo, “Normally we use the speakers on the top of the vehicle we use to drive around the airport to play bird distress calls. But when our bird distress noises weren't working properly, they turned the tape player on, and that day it was Tina Turner who scared the birds away.” Lewington added, “Nominally, we adopt a 'zero tolerance' policy. Some bird activity is, of course, unavoidable and we're sensitive where we can be, such as not cutting the grass until the skylarks have finished nesting. Our operations and fire crew staff carry out routine bird patrols throughout the day and when requested by air traffic control, which maintains constant vigilance across the airfield. Our staff is appropriately trained in bird control measures and uses a variety of techniques to disperse birds from the airfield. These include the use of distress calls, pyrotechnics and lures. The physical presence of a vehicle or personnel on the runway is generally an adequate deterrent.”

Cruising Heights January 2013

n  A flight to remember

gate, he noticed something was wrong. A woman's name was on his boarding pass. “When I realised it I was startled,” said Bailey.

n 

Air Canada was slapped a $206,000 lawsuit by a woman who claimed she suffered second-degree burns from a spilled cup of hot water. Rema Halabi was seated on a flight from Calgary to San Francisco when the flight attendants began to serve refreshments. Halabi alleged one of the attendants turned up with a cup of scalding hot

Serial seductress ?

Stacey Simpson conned three of her boyfriends into believing them that she was flying around the world as an air hostess while minting money from them. The story goes like this: Stacey Simpson told her unsuspecting partners that she worked for Emirates

water to make tea on the tray before her. A passenger seated in front of Halabi then inclined his seatback and shook the tray, spilling the cup of hot water on Halabi’s thighs and down to her knees. She said she suffered serious and permanent injuries, including second-degree burns, blistering and scarring, and lack of sensation.

Airline. But when the 25-year-old claimed she was overseas, she was actually at one of her other lovers’ homes. All three boyfriends lived within a couple of miles of each other in Huddersfield, West Yorkshire, yet Simpson ensured they never met. The charlatan obtained £6,000 in benefits by insisting she was living alone at a love nest that she actually shared with boyfriend number two. Kirklees Magistrates’ Chairwoman Margaret Atkinson implicating Simpson said, “These were multiple offences of fraud over a period of time and premeditated.” Later she was sent to prison for ten weeks by Kirklees Magistrates in West Yorkshire after pleading guilty to 12 fraud charges at a hearing.

n  Not for the fat n  Touch-me-not flight attendant

A grandmother of two was restrained in an easyJet flight just because she had a minor altercation with a flight attendant. Janet Kirby was told that her hand luggage would not fit in the overhead lockers while she was flying back to her home with her sister, Carol. She was told her bag would have to be put in the hold but when she noted other passengers embarking with even larger bags she tried to catch the female flight attendant's attention. She touched the attendant's arm to speak to her but she was accused of assault and told she could not fly. “I tried to get (the flight attendant's) attention by touching her arm and she said, 'Do not touch me. You are not flying',” Kirby said. “I couldn't believe it. To be accused of assaulting somebody just for touching them is absolutely ludicrous. They said I was banned from using easyJet ever again.” A statement from easyJet said that the “customer was declined travel following a confrontation with a staff member. The decision was supported by police who witnessed the incident”.

If you thought boarding a flight is easy, think again. An obese woman was turned away by three airlines as she tried to return to the US from Europe and died overseas, prompting legal action from her family. Vilma Soltesz and her husband travelled to Hungary in September 2012 to spend a month in their homeland. They flew from New York to Budapest on KLM without any problems, with Soltesz purchasing two seats for herself because of her size. But when the couple tried to return to New York in October, the problems began. “They were sent from airline to airline, they were sent driving around, they were just treated completely inhumanely,” Holly Ostrov Ronai, the family's attorney told NBC News. “(The airlines) had a duty to get her home to her doctors.” Ronai added, “Soltesz and her husband came on board their scheduled KLM flight to New York with the help of a Skylift elevator, but the captain told them to disembark because of an issue with the seatback and because the airline didn't have a seatbelt extender.”

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snippets

domestic Airlines

More Delhi-Mumbai IndiGo flights

Consolidating its position as the fastest growing airline, lowcost carrier IndiGo recently launched its 14th daily non-stop flight on the Mumbai-Delhi-Mumbai route. It has started operations of its sixth daily non-stop flight on the Mumbai-Bangalore route and the second daily non-stop flight on Mumbai-Kochi-Mumbai sector. Elaborating on the new flights, Aditya Ghosh, President, IndiGo said, “We are looking at providing affordable fares on these new routes. 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.” Pre-cab booking services by IndiGo: In an initiative to make travelling hassle free for its customers, IndiGo has tied up with Carzonrent to offer pre-cab booking services to them, who will now have the option to book cab pick-up/drop, intercity car rental service as well as long duration local usage service at very reasonable rates.In addition, the customers will also have an option to choose from a wide array of vehicles for their travel.The online search engine will allow them to make prior reservation and make payments through credit cards or cash on service. Said Aditya Ghosh, President, IndiGo, “This partnership (with Carzonrent) is yet another step towards living our promise and providing true value to our customers.” Rajiv Vij, MD and CEO, Carzonrent (I) Ltd said, “With this collaboration, IndiGo fliers will be able to use our services in all the cities IndiGo operates in. This is an important part of our strategy to capitalise on the rapid growth of the travelling industry. ”

Jetprivilege offers unique benefits Providing its customers with unique benefits, Jet Airways’ JetPrivilege, India’s largest frequent flyer programme, recently launched a partnership in the car rentals category with EasyCabs, a radio cab company with a fleet of 6500 cars in four major cities, and Jetfleet, a pan India car rental company. While Easy cabs has a fleet of radio cabs in Delhi, Mumbai, Hyderabad and Bengaluru, Jetfleet has strategic association with Jetair, India's premier 37-year aviation services group that includes Jet Airways. As a result of the partnership, JetPrivilege members can earn 40 JPMiles per car rental for all bookings made through EasyCabs call centre, and those who prefer to book Jetfleet vehicles can earn10 JPMiles on every `100 spent, exclusive of taxes. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, “Jet Airways is synonymous with the finest things in life, from our service to our products and we only serve the best to our guests. This partnership further provides considerable synergies for both parties in the corporate and leisure markets and should contribute significantly in reinforcing our existing network in the domestic market. This partnership would allow guests to get to their destination hassle-free at airports. ” ATR 72-600 for regional connectivity: In an initiative to provide enhanced connectivity with Tier II and III cities and towns across the length and breadth of the country, Jet Airways recently announced the planned induction of five new state-of-the-art ATR 72-600 series aircraft into their fleet. The ATR 72-600 series, that comes equipped with the latest avionics technology, commenced flights from December 2012 till March 2013. Ideally suited for operations in the regional transportation market, the aircraft will seat 68 passengers in an all economy layout. These aircraft come powered by a new Pratt & Whitney PW127M multi-rated engine, which aids the aircrafts take off from short runways with increased payload. Guests will also be able to travel in complete comfort given that the new aircraft benefits from

the widest cabin in the turboprop market, providing maximum space for passengers and also offering more baggage room. The ceiling and cabin side panels have been reshaped and designed to offer passengers more space and light creating a harmonious and balanced environment. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, “Importantly, the ATR 600 series bring some new operational capabilities to the airline by being the most economical aircraft to fly. The aircraft’s redesigned cabin will allow us to afford our guests complete comfort and its outstanding performance at take-off on short runways with increased payloads.” Jet Airways has a total of 107 commanders and 114 first officers for the ATR fleet out of which presently, 55 pilots are undergoing training on this new aircraft. Inducts new Airbus A330-300: Marking the expansion of Jet Airways’ Airbus fleet, the airlines recently announced the planned induction of four new state-of-the-art Airbus A330-300 series aircraft into its fleet. The first two of these brand new Airbus A330300 aircraft will replace the airlines two leased Airbus A300-200 aircraft. The other two aircraft will progressively be deployed for the airlines international routes. The first of the new series of Airbus A330-300 aircraft recently commenced commercial flight operations as 9W 228/227 on the

Cruising Heights January 2013

Mumbai-Brussels-Mumbai sectors. With 259 economy seats, Jet Airways’ new Airbus 330-300 offers substantially more leg room in the Economy section and the all new Première (business class) seats have contemporary ‘Contour Vantage 2’ seat control features. “With unmatched performance, unrivalled economics and reliability, the A330 is the ideal aircraft for medium to long haul routes,” said Dr Kiran Rao, Airbus EVP Strategy, Sales and Marketing. “The A330 allows airlines to offer the latest in state of the art cabin products and this is amply demonstrated by Jet Airways in their new Première class (business cabin).”

Women work for safety on road To accelerate the mission of road safety in India, a country where around one lakh lives are lost annually in road accidents, resulting in huge economic losses, the Automobile Association

Ramco goes live with Air India

Ramco Systems, the Global Aviation Maintenance and Engineering (M&E) and Maintenance, Repair and Overhaul (MRO) software provider on cloud, tablets and iPad, announced that Ramco Aviation had gone live with its implementation in Air India. With this, Ramco Aviation Suite will help Air India to maintain its 125-plus fleet of Boeing and Airbus, including the latest Boeing 787s. Speaking on the go-live, Vipin Kumar Sharma, SBU Head, Air India, said, “We are happy to announce the successful golive of Ramco Aviation Suite at Air India. We evaluated multiple global MRO vendors and chose Ramco as it met all our elaborate functional requirements. After implementing Ramco’s Aviation Software, we hope to increase productivity through optimum use of engineering resources. As the entire fleet is maintained on the system, we would be able to effectively track history of the aircraft and components for faster resolution of defects/snags.” Commenting on this milestone, Virender Aggarwal, CEO, Ramco Systems, said, “We have been investing in building the latest functionality into the product by enhancing the user experience and delivering it on cloud, mobile and iPad. ”

road to journey: Susan Pikrallidas, Secretary General, Federation Internationale de l' Automobile (FIA), France and Alliance Internationale de Tourism (AIT) Geneva inaugurating launch of AAUI's initiative, where they appointed women ambassadors for safety on roads

of India (AAUI) recently launched an initiative under its President, TK Malhotra, in New Delhi by appointing honorary women road safety ambassadors. The event was inaugurated by Susan Pikrallidas, visiting Secretary General, Federation Internationale de l’Automobile (FIA), France and Alliance Internationale de Tourism (AIT) Geneva, who congratulated the AAUI for giving women drivers an important role to play in promoting UN Decade of Action for Road Safety. More than 100 women participants and distinguished speakers, comprising Maxwell Pereira, former joint police commissioner in New Delhi, Dr P P Kotwal from AIIMS, Dr Rishi Mohan from Madan Mohan Eye clinic, and UN representative for India and Bhutan, Kiran Mehra-Kerpelman, were present on the occasion.

DIAL achieves CSS(O) certification Delhi International Airinitiative. Strong corporate goverport (P) Limited (DIAL) recently nance is critical for companies that became the second Indian orcompete globally, and CSS(O) cerganisation after Symphony Sertification allows companies such vices, and the first Public Private as DIAL to demonstrate that their Partnership globally to be Certisoftware asset management is best fied in Standards-based SAM for and class. CSS(O) is the first and Organisation or CSS(O) by BSA, only enterprise-level certification the Software Alliance, the forethat affirms that an organization most organisation dedicated to is compliant with its software promoting a safe and legal digital licence agreements and, perhaps world. even more importantly, that its Speaking on the occasion, SAM processes are aligned to the Jodie Kelley, General Coun- towards excellence: Anupam Nagar, Director, KPMG, Davesh Shukla, ISO SAM standard.” sel and Senior Vice-President of Vice President and CIO, Information Technology, Delhi International Airport Davesh Shukla, CIO and Anti-Piracy, BSA, said, “We are Limited (DIAL), Jodie Kelley, General Counsel and Sr. Vice President of Vice President, IT, Delhi InternaAnti-Piracy, BSA, Shree Parthasarathy, Senior Director - Enterprise Risk extremely pleased to add another Services – Deloitte Touche Tohmatsu India Private Limited tional Airport (P) Limited (DIAL) success story to our Certification emphasisedthat“DIAL’s engagein Standards-based SAM programme in India. Delhi International ment with BSA, The Software alliance has been a great experience Airport (P) Limited is the first private and public collaboration firm for us. While we always had the processes in place, BSA’s CSS(O) to receive CSS(O) certification, highlighting the significance of the enables us to mature our processes.” Cruising Heights January 2013

snippets

international airlines

Spicejet connects Kochi-Dubai

Kenya, Luxor, Amman, Damascus, Istanbul and Athens from its primary hub in Sharjah.

Messi is Turkish Airline's brand rep

Solidifying Turkish Airlines’ partnership with global sports figures to promote the brand, International soccer superstar Leo Messi was named the Global Brand Ambassador for the airlines at a recent ceremony at the Camp Nou Stadium in Barcelona, Spain, after signing the agreement in September 2012. The FC Barcelona

Budget airline SpiceJet recently launched its second international flight from Kochi connecting Dubai. The company is offering daily direct flight from Kochi to Dubai and the inaugural ticket fares are as low as ` 4,999 (one way fare inclusive of all taxes). Currently, the airline operates direct daily flights to Dubai from Delhi and Mumbai. The airline has also launched a flight to Dubai from Ahmedabad, Spicejet CEO Neil Mills informed. “SpiceJet has been working on new destinations in the domestic market and international routes, as it has set its sights on expanding coverage in phases on a regular basis. The airline has already announced it will launch Delhi-Riyadh and Delhi- Guangzhou flights from coming month,” he said.

Air Arabia’s experiential trip

An experiential visit to the exquisite lands of Jordan was recently organised by low-cost carrier Air Arabia for some of their key business partners in India. The FAM trip covered Amman, Petra, Jerash, Dead Sea, Wadi Rum and Mount Nebo.

The right experience: The team of Air Arabia's key business partners on an experiential trip to Jordan

The FAM trip was organised by Air Arabia with hotel courtesy from Grand Hyatt and Land arrangements done by Al Thurraya, a leading inbound tour operator of Jordan. It was offered to ten leisure agents from leading companies like Thomas cook, Kesari and Krisia Holidays etc, so as to give them a complete Air Arabia experience. The airline which enjoys a presence in the MICE, VFR, and Leisure segments, is looking to further strengthen its presence in the leisure segment. Air Arabia connects 13 destinations in India to the UAE and has easy access to great holiday destinations like Kiev, Alexandria,

ADDING STAR POWER: Argentine Soccer Star Leo Messi during a press conference on the occasion of endorsing Turkish Airlines

forward joins the ranks of Los Angeles Lakers star Kobe Bryant and professional tennis player Caroline Wozniacki who have been brand ambassadors since 2011 and 2010 respectively. “I believe that by joining with a global network company such as Turkish Airlines, we will set to sign many more successful projects. As an Argentinian, I am happy Turkish Airlines is having another destination Buenos Aires from Istanbul, said Messi.”

Virgin Atlantic's domestic plans

Virgin Atlantic recently outlined plans to launch a domestic flying programme within the UK from the spring of 2013. The airline will be adding 24 domestic flights a day within the UK to its existing long-haul network that will strengthen connectivity for its Indian passengers from Delhi, Mumbai, Pune and Punjab. The move will also create more than 150 new jobs in the UK. Sir Richard Branson’s airline has confirmed that it will take up nine of the twelve daily pairs of Heathrow slots which British Airways has to give up to ensure that consumers again have an alternative on key routes previously competed by bmi. From April 2013, the airline will operate six round-trip flights a day between Heathrow and Edinburgh, with three daily roundtrip flights between Heathrow and Aberdeen. The airline has also utilised three of its own Heathrow slot-pairs to complement the new Scottish routes with three daily round-trip services between Heathrow and Manchester from March 31, 2013. Virgin Atlantic Chief Executive, Steve Ridgway commented, “Throughout our history, Virgin Atlantic has successfully fought British Airways all over the world and has offered passengers a compelling alternative through our renowned product and service. We will look to replicate that in our short-haul flying and challenge

Cruising Heights January 2013

the current BA monopoly on these routes which is causing serious consumer harm. Virgin Atlantic will offer millions of passengers in Scotland and Manchester connections around the world through our and our partners’ long-haul network, with the additional benefit of providing direct services to and from London Heathrow.” The new schedule will suit Indian passengers as they can now continue to travel within the UK on their preferred airline within less than two hours of arriving at London Heathrow whilst benefitting from an equally convenient return journey.

IndiGo: Kolkata-Bangkok non-stop

Reinforcing its commitment to the international market, IndiGo has launched its new daily and non-stop flights connecting Kolkata with Bangkok. The airline is offering introductory return fare of ` 9009 on all new flights. Speaking on the occasion, Aditya Ghosh, President, IndiGo said, "Bangkok and Kolkata hold a lot of promise for us at Indi-

Etihad is world’s leading airline

Taking the World’s Leading Airline title for the fourth year in a row at the recently-held World Travel Awards at the Oberoi Gurgaon in New Delhi, the United Arab Emirates national airline, Etihad Airways, brought home top honours. Etihad Airways also received recognition for its Diamond First Class product, named the World’s Leading First Class.

setting standards: Graham Cooke, World Travel Awards President and Founder, and Peter Baumgartner, Etihad Airways Chief Commercial Officer, hold the award for World’s Leading Airline.

James Hogan, Etihad Airways President and Chief Executive Officer, said, “We have received this award for four consecutive years and every year we have sought to raise our standards even higher. Our Diamond First Class, for example, brings consistent accolades as we continue to develop the product. In December 2011, we introduced our First Class Chefs and a new menu design with unparalleled levels of choice. This year, we built on that programme by entering into a partnership with Abu Dhabi Organic Farms, bringing fresh organic produce, eggs and honey to our menus.” “By the end of 2014, every single Etihad Airways aircraft will be equipped for inflight connectivity,” he added.

MA recognises travel agents

Malaysia Airlines recently organised the South-Asia and Middle-East Awards Night in the duty-free island of Langkawi, Malaysia, to recognise and appreciate the contribution of top producing agents from India, Bangladesh, Sri Lanka, Nepal, Maldives and Saudi Arabia. A senior delegation of the airline headed by Ahmad Jauhari Yahya, its Group CEO and MD, Duncun Bureau, Senior Vice President, Sales and Distribution, and Azahar Hamid (Regional Sales Vice-President, South-Asia and Middle-East) were present at the event, which was also attended by a senior delegation from Langkawi Development Authority (LADA) and Tourism Malaysia.

Go and indeed is a key market for us. Expanding operations on this route is in line with our growth strategy outlined for both the regions. There are strong trade and tourism ties between eastern region of India and Thailand and travellers have requirements of low fares by an Indian airline. We are absolutely delighted to announce new daily and non-stop flights between Kolkata and Bangkok. With rising business and tourism stemming from the region, IndiGo is determined to provide the best travel experience to all those who wish to fly to Bangkok from eastern part of the country. Our affordable fares on these new routes will further grow the market and benefit travellers." Ahmad Jauhari Yahya thanked the entire travel trade fraternity present at the event and said, “We extend our appreciation and gratitude to all of you as top performers who have successfully positioned Malaysia Airlines among the most preferred airlines in the South-Asia region. Through your support, our South-Asia and Middle-East markets saw approximately 22 per cent growth in revenue in 2011 and to-date in 2012 a 10 per cent growth despite currency appreciation in the regions.”

2013 ACI Conference at Doha

The 2013 ACI (Airports Council International) Airport Exchange Conference will take place in the Qatari capital Doha between November 18 and 20 at the new Qatar National Convention Centre. It is considered to be the most important airport transport event in the industry’s calendar with an expected turnout of over 2,000 delegates from Europe, Asia Pacific and around the world. The ACI Airport Exchange enables aviation business experts to share knowledge and experience in one of the most dynamic industries. The 2013 ACI conference will include an innovation and architectural showcase presenting the future of airport design, unique social programmes, workshops and exhibitions from leading solution providers.The 2012 annual ACI Airport Exchange conference, the sixth edition, had taken place at Schiphol Airport in Amsterdam. During the conference, Schiphol Airport had presented the Doha International Airport with a traditional Dutch plate to signify the handover of the 2013 ACI Airport Exchange to Qatar.

Cruising Heights January 2013

snippets

TRAVEL & TOURISM

The Khyber opens its doors

Located at an elevation of 8,825 feet in the Pir Panjal range of the Himalayas, The Khyber, Himalayan Resorts and Spa, Gulmarg’s first luxury resort, recently opened its doors ahead of the ski season. Spread over seven acres in a pristine pine valley, this 85 key resort, is clad in timber and stone. “The Khyber will be the firt resort in Gulmarg to offer comforts and facilities that a discerning international traveller seeks. We have attended to every detail to make this resort truly unique”, said Umar Tramboo, MD, Pinnacle Resorts Pvt Ltd, promoters of the Khyber. “Guests at the resort wil experience luxury on a par with international standards and personalised service that hasn’t been seen in Gulmarg,” he added. All eighty rooms, four luxury cottages and the Presidential Cottage offer panoramic views of the Affarwat Peaks or of evergreen valleys. The interiors are designed with traditional materials and showcase fine Kashmiri crafts. The resort offers Premier Rooms (386 square feet), Luxury Balcony Rooms and for families and guests needing extra space, the re-

Sofitel plans 150 hotels by 2015 Paving the way to strengthening its position in the world market, Sofitel Luxury Hotels aspires to be present in all of the world's

Expanding horizons: Officials from Sofitel unveliling the plans

major cities, with a target of 150 hotels by 2015. The opening of four new hotels in key regional markets over the last year, including the Sofitel Mumbai BKC, Sofitel Auckland Viaduct, Sofitel Bangkok Sukhumvit and the first Sofitel in Asia — Sofitel, Bangkok — were initiatives to enhancing its presence in Asia Pacific. Over the past five years, the group streamlined the number of Sofitel branded properties across the world; going from 204 in 2006 to over 120 in 2012.

Continued progress for Dnata, HRG

After the formal start of operations by introducing their travel products and services to corporate customers and the opening of two offices — one in Delhi (Noida) and the second in Mumbai last year —combined air services provider Dnata and its partner, international corporate services company Hogg Robinson Group (HRG), have grown to a team of over 165 members and widened their reach to cover eight cities. The company is now providing a range of innovative business

future plans: (L-R) Anil Verma and Alex Koshy presenting the Khyber plans for the future

sort offers Luxury Cottages — one bedroom (648 sq.ft.) and two bedrooms (1296 sq.ft.). The Presidential Cottage (4227 sq.ft.) is a grand suite comprising a large master bedroom, two additional bedrooms, a private heated plunge pool with a Jacuzzi, a living room, dining room, a full kitchen and a spacious private garden. solutions to more than 75 global and national corporate clients. Management and staff from Dnata’s travel business also attended the recently-held World Travel Awards event at The Oberoi Hotel in Delhi, where the business has been nominated for an award. “The reception we have received in the market since launching last year has been phenomenal,” said Ashish Kishore, Dnata’s Country Head in India. “Companies are proving to be very receptive to exploring new ways to use technology to control costs in all spheres of their operations without impacting their service standards. With over 50 years of experience in the travel industry we know there is scope in the market for Dnata to grow the business still further and we look forward to working with our partners HRG to achieve this.”

Finest Teas at Delhi Duty Free

“Tea Tasting” has been introduced at the Delhi Duty Free, India’s largest duty free retail space at T3, IGI Airport, in association with India’s gourmet tea brand San-cha Tea. The duty free shops at the airport are currently serving the famous Masala Chai (Black Tea blended with fresh spices from the Malabar Coast of India) and the Darjeeling Earl Grey Tea (a unique blend of floral Darjeeling black tea and citrusy bergamot) round the clock to the travellers. The vast collections of San-cha tea include teas from regions such as Darjeeling, Assam, Nilgiri and Kangra. The shops are also serving the President’s Tea of Darjeeling. Taken usually as state gifts by Prime Ministers and other dignitaries of India, this tea is carefully selected by the master Tea Tasters and packaged in a hand embroidered Zardozi Velvet Bag. “Indian tea is regarded as the best and adored by many around the world. Having started tea tasting at the departure shops, we are delighted with the response it has garnered from the travellers. We have decided to carry on the activity for a few more months. This activity has not just led to an increased interest in the beverage, but has also created higher demand for the same at the duty free shops” said Delhi Duty Free.

Cruising Heights January 2013

Portugal to tap Bollywood

In an initiative to promote Portugal as an up-market leisure destination, a high ranking Portuguese tourism delegation led by Cecilia Meireles, Secretary of State for Tourism, visited India. Secretary Meireles was accompanied by Jorge Roza de Oliveira, Ambassador of Portugal to India; Frederico Costa, President of Turismo de Portugal, senior government officials and the heads of some of Portugal’s finest hoteliers and local tour operators. Turismo de Portugal (the state tourism promotion authority) also conducted its historic maiden B2B networking workshop titled ‘Portugal Experience Workshop 2012’ in New Delhi and Mumbai, where the delegation interacted with an impressive 500 to 600 pre-selected Indian trade professionals that comprise major travel and tour operators, wedding planners, golf and cruise promotional organisations in addition to MICE operators. Commenting on the maiden visit to India, Secretary Meireles said, “We have always felt close to India, especially on account of our historic connection with the State of Goa. Our maiden marketing initiative will hopefully position Portugal as leisure, historic and cultural destination amongst the Indian travellers. Films are a wonderful medium for showcasing a destination and all that it has to offer a first time visitor. Bollywood which is hugely popular not only in India but also loved by millions across the world. Thus the Indian film industry is a key target market for us as it provides an ideal and effective platform to promote Portugal to Indians thereby increasing tourist footfalls into Portugal.” The delegation met with the Indian film fraternity comprising of prominent line producers and location coordinators associated with big production houses such as Disney UTV, Pop Corn Entertainment Pvt. Ltd. (Sunil Shetty’s production company), BSK Network and Entertainment Pvt. Ltd., (Boney and Sridevi Kapoor’s film production company) amongst others.

Via.com, Tiger Airways partnership

Via.com, South East Asia’s leading travel network recently entered into an exclusive strategic alliance with Tiger Airways Singapore, one of Asia’s leading low cost carriers. With this collaboration, Via.com becomes the strategic travel

agent distributor of Tiger Airways’ tickets in India, Indonesia and the Philippines. This partnership perfectly aligns with Tiger Airways and Via.com’s strategic initiatives to expand their existing customer base while also expanding into new geographic markets. This partnership will enable both companies to better serve the burgeoning Indian business and leisure travel market. Via.com being India’s largest travel network has a strong offline distribution grid with more than 20,000 stores across 2400 cities. Customers will now be able to book flights on Tiger Airways through all these stores. Via.com will offer a complete range of services — from booking of Tiger Airways flight tickets, purchase ancillary products to hotel bookings — providing a vast array of holiday options for the Indian consumer.

Go shopping in Dubai

To celebrate the 17th year of its association with the Dubai Shopping Festival (DSF) that — kicks off from 3rd January 2013, and will run till 3rd February 2013 — Emirates Holidays, the touroperating arm of Emirates airline, is offering attractive return packages to Indian travellers starting at `26,057 per person on twin sharing from Delhi. The variety of packages offered by Emirates Holidays include three nights’ accommodation with buffet breakfast, return Economy Class airfare on Emirates airline; meet-and-assist upon arrival; and return airport transfers by private car. Customers are being provided a choice of accommodation in a variety of selected properties to suit all budgets. The offer does not include visa fees, fuel surcharge and airport departure taxes. Nadeem Ulde, Business Development Manager — India, Emirates Holidays said, “We are pleased to announce our 17th year of association with the Dubai Shopping Festival, one of the largest shopping festivals across the globe. DSF attracts tourists from around the world in very large numbers every year. India being one of the key markets for Dubai, we have got very encouraging response for the festival over the years and we look forward to continuing it this year.”

appointments Peri joins Banyan in Kerala

Srikant Peri was recently appointed as the Hotel Manager for Banyan Tree Hotels and Resorts upcoming property in Kerala. The resort happens to be the first hotel project in India for Banyan Tree Hotels and Resorts. Peri, who had joined the company in July 2012 as part of the resort’s pre-opening team, will be responsible for overseeing operations and profitability for Banyan Tree Group’s first resort in India.

Pratyush to lead Boeing

P J Banyan

Boeing recently named Pratyush ‘Prat’ Kumar as President of Boeing India. He joins Boeing with significant business leadership experience and insight into the Indian market, having served in senior executive positions at GE Transportation since 2003. Kumar

succeeds Dinesh Keskar, who last year returned to Boeing Commercial Airplanes in a senior Sales leadership role. As the company’s senior in-country leader, Kumar is responsible for leading the development and implementation of the Boeing India strategy. He will coordinate business activities, align priorities, expand the Boeing presence and P Kumar develop, maintain and enhance local relationships and in-country partnerships with India’s business and government stakeholders. Boeing also appointed Ashmita Sethi as Communications Director for India. She will lead the company’s media relations, acting as Principal Spokesperson. Her extensive strategic communications experience and expertise in the Indian aerospace and defence sector includes 11 years at Rolls-Royce.

Cruising Heights January 2013

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Falcon flies – even at 40! W

ay back on December 1, 1972, executives from Pan American Airways and Dassault Avia tion took “a giant step for business aviation in the US” when they established Dassault Falcon Jet Corp as a joint venture. The move came after the decade-long cooperative efforts by the team to introduce the Falcon 20 business jet to the market. Those were the years of growth for business jets in the US and it was essential to enter the market. When the wholly-owned subsidiary of the French Dassault Aviation joined hands with Pan American, it provided the aircraft manufacturer to put its footprint in the growing US market. Among its competitors were the Lockheed JetStar, that had been in production for a few years, Learjet (that had just moved its facilities to the US from Austria), and Cessna and Gulfstream which were also moving ahead with the introduction of their first business jets. Four decades later, after a long and remarkable journey, Dassault Falcon Jet Corp continues to move ahead with full force to set another milestone that comes up in

MAKING OF A LEGEND: (Above) A yesteryear advertisement depicting Panam and Dassault partnership; (bottom) interior of Dassault Falcon aircraft.

May: the 50th anniversary of the first flight of the Falcon 20. Though the aircraft is no longer in production, the first Falcon jet has not stopped making history: last autumn, the Falcon 20 became the first civil jet to fly using biofuel. An entity with a rich history in aviation, the family of Falcon jets currently in production includes the tri-jets: the Falcon 900LX, and the 7X as well as the twin-engine 2000LXS, 2000LX and Falcon 2000S. “The history of Dassault Falcon Jet is quite remarkable. Some of the most recognised names in aviation have their history intertwined with ours,” said John RosanCruising Heights January 2013

vallon, President-CEO of Dassault Falcon Jet Corp and Executive Vice President of Dassault Aviation. “Charles Lindbergh and Juan Trippe launched Pan American Business Jets with the Falcon 20. Fred Smith launched FedEx with a fleet of Falcons. The United States Coast Guard ushered in the age of jet powered search-and-rescue airplanes with the Falcon.” Started with just a handful of employees, today Dassault Falcon Jet Corp employs a total workforce of over 12,000 and is responsible for selling and servicing all Falcons in the Americas, the Pacific Rim and China. The company’s headquarters are located at New Jersey’s Teterboro Airport, which houses customer service, marketing, sales, executive and back office functions. “The success of the company is built upon the hard work, dedication and ingenuity of Dassault employees worldwide, many of whom have been with the company their entire career,” Rosanvallon added. n