July aug 2013

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EVENT REVIEW Paris Airshow 2013

FACE TO FACE

Sanjay Handu, of TE Connectivity

INS Vikrant reborn in indigenous avtar India to join an elite club of nations after its aircraft carrier comes into full service in 2018

improvement.

Continued. Â

EDITORIAL www.indianaviationnews.com

Exploring in-house capabilities

Founder Late ALKA SEN Publisher & Advertising Director HIRAK SEN Email-hirak@yahoo.com Editor-in-chief PULAK SEN Email-sen.pulak@gmail.com Principal Adviser AIR MARSHAL M. S. D. WOLLEN (Retd.)

Advisers ADMIRAL J. G. NADKARNI (Retd.)

LT. GEN. N. S. NARAHARI (Retd.)

B. K. SINHA (Retd.) Dy. MD, IA B. P. BALIGA, (Retd.) Sr. VP, JET AIRWAYS

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s India launches first phase of its indigenous aircraft carrier—Vikrant—it could be seen as a new beginning for the country’s in-house production capabilities that’s traditionally been relied on imports and foreign technologies. When the Vikrant comes into full service in 2018, India will join an elite club of nations including Britain, France, Russia and the US. Defence Minister AK Antony described the occasion of launch as momentous one. He acknowledged this as the first step in a long journey, but an important one. “It was indeed a proud moment for the country to witness our efforts at achieving self-reliance in the field of warship design and construction, as only a very few advanced countries in the world possess the capability to design and build aircraft carriers. We must continue the process of strengthening indigenous capability towards securing our maritime interests,” he said. The Defence Minister urged the Indian industry to participate wholewww.indianaviationnews.com - India’s only website for Civil and Military Aviation news heartedly in shipbuilding programmes and further consolidate strength in this field.

The success of Vikrant project is a perfect example of public-private partnership and Government’s favourable policies. The construction of the ship is a truly pan Indian effort with active participation of private and public enterprises. The steel has come from SAIL; the main switch board, steering gear and water tight hatches have been manufactured by Larsen and Toubro; the high capacity air EVENT REVIEW conditioning and refrigeration systems have been manufactured by FACE TO FACE Kirloskar; most pumps have been supplied by Best and Crompton, Chennai; Bharat Heavy Engineering Limited (BHEL) is supplying the Integrated Platform Management System (IPMS); the massive gear box is supplied by Elecon in Gujarat; the tens of thousands of INS Vikrant reborn electrical cable is supplied by Nicco industries in Kolkata; Kolkata is in indigenous avtar also where the ship’s anchor chain cable is manufactured.

The Government off late have started to recognise the need to involve private players in defence equipment production. Since May 2001, the defence industry sector is open up to 100 per cent for Indian private sector participation with FDI permissible up to 26 per cent, both subject to licensing. However, wherever FDI beyond 26 per cent is likely to result in access to modern and state-of-the-art technology into the country, decisions can be taken to allow higher FDI on a case-to-case basis with the approval of the Cabinet Committee on Security. Defence Offset Policy incorporated in the Defence Procurement Procedure is also intended to strengthen indigenous defence industrial base. Further, the Defence Production Policy, 2011 also endeavours to build up a robust indigenous defence industrial base by proactively encouraging larger involvement of the Indian private sector.

Ministry of Defence has recently promulgated the Defence Procurement Procedure 2013 (DPP-2013) which came into effect from June 1, 2013. Besides clearly articulating the step by step acquisition process, various clauses to enhance indigenization, expedite acquisition processes, increased transparency, revising defence shipbuilding procedure including a separate format for RFP (Request for Proposal) for shipbuilding cases have been incorporated in the procedure. Some of the key features of DDP-2013 include prioritization of various categories for capital acquisition; clear definition of indigenous content; simplification of `Buy & Make (Indian)` procedure; permitting Indian private industry to receive MToT (Maintenance Transfer of Technology) from Indian vendors in `Buy (Global); reducing the period of AoN (Acceptance of Necessity) from two years to one year; freezing GSQR (General Staff Qualitative Requirement) before finalization of AoN; and separate RFP for ship building cases.

These initiatives are expected to further strengthen the defence manufacturing base in the country. Now it’s time for private sector to prove its mettle.

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Senior Designer RAJESH NATARAJAN Circulation & Business Manager SURESH DAPHAL Editorial & Admin. office 603, Palm Beach Apartment J. P. Road, Versova, Andheri (W), Mumbai 400 061 . India.

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Printed and published by Hirak Sen for the proprietors, Indian Aviation News Service Private Limited.

Paris Airshow 2013

Sanjay Handu, of TE Connectivity

India to join an elite club of nations after its aircraft carrier comes into full service in 2018

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July-Aug 2013

CONTENTS

INDIAN NEWS

04

GLOBAL NEWS

07

COVER STORY

16

EVENTS REVIEW

10

FACE TO FACE

21

EVENT PREVIEW

24

Paris Air Show 2013

SPECIAL REPORT

Air Transport IT Summit 2013 INDIAN AVIATION

INS Vikrant reborn in indigenous avatar

Sanjay Handu, Director, ADM Business Unit, TE Connectivity

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July-Aug 2013

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INDIAN NEWS IAF C 130J-30 lands at Daulat Beg Oldie

High level changes in Indian Air Force On July 1, several high level changes took place in Indian Air Force. New incumbent took charge as Vice Chief of Air Staff, Air Officer Commandingin-Chief, Western Air Command and Air Officer Commanding-in-Chief, Maintenance Command.

Air Marshal Arup Raha

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n a significant capability demonstration move by the IAF, a C 130J-30 Super Hercules aircraft landed at Daulat Beg Oldie (DBO), the highest airstrip in the world at 0654 hrs on Aug 20, 2013 The Commanding Officer Group Captain Tejbir Singh and the crew of the “Veiled Vipers” along with senior officer of Air Headquarters touched down on the DBO airstrip located at 16614 feet (5065 meters) in the Aksai Chin area after taking off from their home base at Hindon.

DBO is an important Army forward area post which links the ancient silk route to china. This base was built during the Indo-China conflict in 1962 and came into prominence when Packet aircraft of the IAF operated from DBO between 1962 and 1965. Once again this strategic base in the Northern Himalayas gained importance when it was resurrected and reactivated by the IAF along with the Indian Army and made

operational when a twin engine AN 32 aircraft from Chandigarh landed there after a gap of 43 years.

Considering the very limited load carrying capability of AN 32 and helicopters, a decision was taken by the IAF to land the C130J-30 aircraft which is capable of lifting upto 20 tonnes of load.

The tactical airlift aircraft of the special operations squadron the “Veiled Vipers” which is capable of undertaking quick deployment of forces in all weather conditions, including airdrops and landings on unprepared or semi prepared surfaces created history by landing at this altitude and hostile terrain conditions. This achievement qualifies for the world record for the highest landing by an aircraft of this class.

Incidentally, this was the same aircraft and crew that operated at Dharasu during “Op Rahat” for the Uttarakhand flood relief.

IAF’s C17s maiden flight to Port Blair Having touched down on Indian soil on 18 Jun 2013, the IAF’s latest acquisition C-17 Globemaster-III made its maiden flight to the Andaman & Nicobar Islands on 30 Jun, 2013. Climbing an altitude of 28,000 feet with an unrefueled range of 2,400 nautical miles, the aircraft landed at Port Blair to induct the rotational Infantry Battalion into the Andaman & Nicobar Islands.

Manufactured by Boeing of the United INDIAN AVIATION

States, the C-17 Globemaster-III is a heavylift transport military aircraft, developed for the United States Air Force (USAF).

India has become the largest customer, of this sophisticated aircraft, after the United States. C-17 Globemaster-III is 174 feet in length, with a wing span of 170 feet. The maximum all up weight is 2,65,350 kg, with an ultra modernized palletized cargo handling capability.

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Air Marshal Arup Raha PVSM AVSM VM ADC, Air Officer Commanding-in-Chief, Western Air Command took charge as the Vice Chief of Air Staff (VCAS) at Air Headquarters on 01 July 2013.

Having done his early schooling from Sainik School Purulia, he graduated from the National Defence Academy (NDA), Pune with the President’s gold medal in 1973. He was commissioned in the Flying Branch in December 1974.

The Air Marshal has flown an array of combat and trainer aircraft during his service career. He has to his credit nearly 3,400 hours of flying mainly on fighter aircraft. He is an experienced Qualified Flying Instructor and has served as Directing Staff at Flying Instructors’ School, Tambaram as well as at the Tactics and Combat Development Establishment of the IAF. He has functioned as an Inspector in the Directorate of Air Staff Inspection in Air Headquarters and as Staff Officer to the Chief of the Air Staff. In 1999, he was deputed as the Military and Air Attache in the Embassy of India, Kiev, Ukraine.

Raha has held many operational assignments such as Commanding Officer of a fighter Squadron, Station Commander, Air Officer Commanding of frontline bases and Advance HQ Western Air Command, Chandimandir.

He has also served as the Deputy Commandant Air Force Academy, Hyderabad and Senior Air Staff Officer at HQ Western Air Command.

Before taking over as AOC-in-C Western Air Command, the Air Marshal was the AOC-in-C of Central Air Command.

He is an alumnus of Defence Services Staff College (DSSC) and the National Defence College, Delhi. He was awarded the Vayu Sena Medal, Ati Vishisht Seva Medal and Param Vishisht Seva Medal in 1995, 2009 and 2013 respectively for distinguished service. He was appointed as Honorary Aide De Camp (Air) to the Honorable President of India wef 01 December 2012.

July-Aug 2013

INDIAN NEWS Air Marshal Soman

Air Marshal SS Soman AVSM VM took over as Air Officer Commanding-in-Chief, Western Air Command, Indian Air Force on July 1. He is a graduate of the National Defence Academy, Pune. He was commissioned in the Flying Branch in Dec 1976 and has more than 3400 hours of flying on fighter aircraft.

Air Marshal Soman’s field assignments include commanding officer of a Fighter Squadron, Chief Flying Instructor at the Flying Instructors School, Chief Operations Officer at Air Force Station Srinagar during Op Parakram and Air Officer Commanding Pathankot. He has also served in a number of staff appointments that include Director Operations (Air Defence), Dir Intelligence, Dir Operations (Joint Planning), Principal Director Operations (Space), Principal Director Flight Safety at Air HQ. His senior assignments include Air Defence Commander at HQ WAC and as Senior Air Staff Officer at HQ WAC and HQ SWAC. He is an alumnus of Defence Services Staff College and has graduated from Air War College, USA. He has served as Asst Def Advisor at the High Commission of India, Dhaka.

The Air Marshal was awarded the Vayu Sena Medal and Ati Vishisht Seva Medal in 1999 and 2009 respectively.

Air Marshal P Kanakaraj

Air Marshal P Kanakaraj AVSM VSM assumed the responsibilities of Air Officer Commandingin-Chief, Maintenance Command, Nagpur on July 1, 2013. He was commissioned in the Aeronautical Engineer (Mechanical) Branch of the Indian Air Force on July 25, 1977.

He is a Graduate Engineer (Mechanical) from Regional Engineering College, Trichy with postgraduation in Propulsion from IIT Madras. Prior to his present assignment, he was the Air Officer-in-Charge Maintenance at Air HQs. He has held various field and staff appointments which include the Director General (Aircraft) and Director General (Systems) Air HQs. He has been the Senior Maintenance Staff Officer of Western INDIAN AVIATION

Air Command, Commandant Air Force Technical College, Principal Director at Air HQs, Commanding Officer at Air Armament Inspection Wing (AAIW) Khamaria and Chief Engineering Officer at Air Force Station Jodhpur.

Air Marshal Kanakaraj was conferred the Presidential awards of ‘Ati Vishist Seva Medal’ on January 26 2012 and ‘Vishisht Seva Medal’ on January 26 2009 for his distinguished service of a high order.

FIPB gives conditional nod for Jet-Etihad deal The Foreign Investment Promotion Board (FIPB) recently gave conditional approval for Jet Airways’ sale of a 24 per cent equity stake to Gulf-based carrier Etihad, for around Rs 2,058crore (US $379 million).

The deal by Abu Dhabi’s Etihad Airways to buy a stake in Jet Airways is the first foreign investment by a foreign airline in India’s domestic aviation sector, after the Government opened up the aviation sector to FDI. While the Government allows foreign airlines to own up to 49 per cent in an Indian carrier, the Naresh Goyal-led carrier opted to limit the stake sale at 24 per cent to avoid the 25 per cent trigger beyond which any sale of stake would attract the open offer clause of the takeover regulations.

The Jet-Etihad deal still needs approval from capital market regulator Securities and Exchange Board of India (SEBI) as well as the group of ministers before it can proceed. A final approval for Etihad’s purchase of 24 per cent of Jet is expected to trigger further deals in the Indian aviation sector.

Foreign capital is seen as a boon by both the Government and most of the country’s airlines that are burdened with heavy losses and mounting debt, mainly due to the high cost of fuel.

A stake in an Indian carrier gives foreign airlines access to one of the world’s fastest growing air travel markets with huge untapped potential.

Close on the heels of the Jet-Etihad deal, low-cost East-Asian carrier AirAsia entered into a deal with the Tata group and Arun Bhatia’s Telestra Tradeplace Pvt Ltd for setting up an India-based joint venture, to tap the potential of Indian cities, especially in the smaller emerging cities.

Meanwhile, low-cost carrier SpiceJet is reported to have received enquiries from unidentified potential investors. Almost all other airlines in the country, including GoAir and IndiGo, are potential targets for foreign investment.

FIPB had earlier sought details of the management structure and effective control of Jet Airways post merger before making a decision whether to approve or reject the deal. SEBI had also threatened to invoke the open offer clause after Jet ceded four

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seats on its board to Etihad to save the deal.

Etihad has since agreed to reduce its representation on the board of Jet to two.

Jet’s founder group will appoint four board members and will have the right to nominate the chairman, whereas Etihad will appoint a vice chairman, according to the document.

The deal, once cleared by SEBI and the government as well, will provide Jet Airways with the much-needed cash to pay off its debt while opening up a vast new market for Etihad.

Air India generates cash surplus of Rs 460 crore A series of cost cutting measures and an aggressive marketing strategy have led Air India to generate cash surplus of Rs 460 crore in AprilJune on the back of a consistent growth trend since last July.

The all-round improvement resulted from a strategy that encompassed a review of Air India’s fleet and network, pricing, schedules and revenue management.

With the turnaround plan (TAP) in operation, the national carrier had gradually reduced its running cash loss from Rs 512 crore in October-December 2011 and Rs 432 crore in January-March 2012 to just Rs 37 crore in April-June 2012.

The airline started making a surplus over its variable costs since July-September last year when its surplus was Rs 51 crore. It jumped to Rs 312 crore in October-December, Rs 361 crore in January-March this year and Rs 460 crore during April-June, official data showed.

“For the past 18 months, Air India’s financials have shown a consistent quarter-over-quarter improvement, including a distinct jump in its financial performance in the first quarter of this financial year,” an industry observer said.

Air India’s domestic occupancy has also been on the upswing since September-October last year vis-a-vis its key competitor Jet Airways and other airlines.

Its seat factor, or average seat occupancy per flight, has been hovering between 70-80 per cent since last October and crossing the 80 per cent mark on at least four occasions, the figures showed.

Regarding right-sizing of its fleet, they said the airline has practically completely withdrawn its Boeing 747 and was in the process of replacing its Boeing 777 LR aircraft with the Boeing 787.

Several measures have also been taken towards better pricing and revenue management, including a market-driven and responsive pricing policy, an automated revenue management structure and supporting tools and 30 or 60 days advance purchase fares.

July-Aug 2013

INDIAN NEWS India resolves ICAO safety concerns India has successfully resolved two safety concerns relating to airworthiness and operations. The International Civil Aviation Organization (ICAO) has conveyed that corrective action taken by India have successfully addressed and resolved two significant safety concerns (SSC) relating to airworthiness and operations. Consequent to this decision, the safety concerns have been resolved and India no longer figures amongst the states with SSC on the ICAO website.

ICAO had identified two SSC relating to airworthiness and operations in December 2012.

The concern on airworthiness related to approval of major modifications and repairs carried out on foreign manufactured aircraft and registered in India while the concern on operations related to the procedure for grant of air operator permit to non-scheduled operators and flight documentation system of scheduled airlines.

DGCA prepared a corrective action plan in January, 2013 to address the concerns and submitted the same to ICAO for their acceptance. On acceptance

by ICAO, DGCA initiated action to implement the plan to address both the safety concerns.

In June 2013, on completing substantial work, DGCA requested ICAO to send a validation team to assess the implementation of the action plan for resolving the SSC. A three member ICAO Team visited India in August for the validation of the correction action plan implementation. During the visit, the team examined all documentary evidences at DGCA Headquarters and regional offices at Delhi and Mumbai. As part of the validation process, the team also visited organizations to ascertain the safety oversight capability of DGCA with respect to implementation of the action plan.

Govt gives nod to replace DGCA with CAA The Government has cleared a proposal to replace DGCA with a new aviation regulator with full operational and financial autonomy. The proposal was cleared at a meeting of the Union Cabinet.

The new regulatory body would be called the Civil Aviation Authority (CAA) and would replace the Directorate General of Civil Aviation (DGCA). It will administer and regulate civil aviation safety and manage safety oversight over air transport operators, air service navigation operators and operators of other civil aviation facilities.

INDIAN AVIATION

Noting that DGCA had limited delegation of financial powers and hence was “incapable of making adequate structural changes” to meet the demands of a dynamic civil aviation sector, the sources said this necessitated its replacement with CAA that would have more administrative and financial powers to deal with the fastchanging aviation scenario.

CAA, like DGCA, would also deal with matters relating to financial stress on safety of air operations, as witnessed in connection with the bankrupt Kingfisher Airlines in October last year.

Issues relating to consumer protection and environment regulations in civil aviation sector would also be addressed by CAA, according to the draft legislation.

CAA is being established to meet the standards set by ICAO and in line with aviation regulators in other countries like the Federal Aviation Administration of the US and the UK’s CAA.

Govt approves forming aviation university Union Cabinet has given its approval to the proposal for setting up of a National Aviation University (NAU) in the name of Rajiv Gandhi National Aviation University at Rae Bareli, UP as a Central University.

The Cabinet also approved the proposal to introduce the Rajiv Gandhi National Aviation University Bill, 2013 in the Parliament; to create a post of Vice Chancellor (with pay scales on the pattern of Central Universities) by selection through a Search and Selection Committee headed by Cabinet Secretary for creation of a temporary post in the grade of Joint secretary to Government of India for the position of Project Director which would be filled up on deputation basis.

Based on a Detailed Project Report submitted

by Ministry of Civil Aviation, the Planning Commission granted “In Principle Approval” for setting up of National Aviation University in India.

The ‘Rajiv Gandhi National Aviation University’ will be established as a Central University and as an autonomous body under the administrative control of Ministry of Civil Aviation with an estimated Central Government`s funding of Rs 202 crore in Phase-l (2013-14 to 2018-19) on the land available with Indira Gandhi Rashtriya Udan Academy (IGRUA), a Society set up as an autonomous body under Ministry of Civil Aviation) in Rae Bareli District. About 26.35 acres of land available with IGRUA has been identified for setting up of NAU in its first phase.

The National Aviation University aims to facilitate and promote aviation studies, teaching,

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training and research with focus on emerging areas of studies such as aviation management, aviation regulation and policy, aviation history, aviation science and engineering, aviation law, aviation safety and security, aviation medicine, search and rescue, transportation of dangerous goods, environmental studies and other related fields, and also to achieve excellence in these and connected fields in emerging areas and such areas as may emerge in future. The University will also be a knowledge partner to safety and security regulators by providing required academic inputs to help them execute their enforcement responsibility better.

Air France-KLM appoints Hicham as Director for India Air France-KLM announced the appointment of Hicham Lahkim Bennani as its new Director Commercial, India Subcontinent. Hicham will be responsible for all commercial related activities for passenger Business on the Indian Subcontinent.

Commenting on the appointment, Yeshwant Pawar, General Manager, Air France-KLM, South Asia said, “We are pleased to appoint Hicham as the Director Commercial, India Subcontinent. His knowledge about the intricacies of the job gained through his extensive working experience and in depth knowledge of the aviation industry will offer valuable insights for the operation of Air France-KLM.” Prior to taking his role as Director Commercial of India Subcontinent, Hicham was District Manager in Abuja, Nigeria, where he introduced a new daily Air France Flight between Paris and Abuja. He began his career with Air FranceKLM as a Trainee in the pricing department in Paris after which he held several positions in the revenue management department. In 2009, he joined the Air France-KLM Delta Alitalia joint venture group based in Amsterdam, Netherlands as an Inventory Manager for the North Atlantic routes.

Hicham brings with him over seven years of aviation experience. His focus has been on marketing, sales and business development, in federal and multicultural environments. He has knowledge of both the Air France KLM and Delta organizations.

Hicham holds an Engineer’s Degree from the EMI Engineering School, Rabat, Morocco and Master of Business Administration Degree from ESSEC Business School, Paris, France.

July-Aug 2013

GLOBAL NEWS

KLM Cityhopper adds six Embraer 190 jets

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LM Cityhopper, KLM’s regional subsidiary, has concluded a lease agreement with BOC Aviation to add six Embraer 190s to its current fleet of 22 E-Jets. The additional E190s are part of KLM Cityhopper’s strategic plan to replace the oldest aircraft in its Fokker fleet. The first of the six E190s is scheduled to be delivered during the second half of 2013.

Consistent with its current E190s, the new E190s will also be configured with 100 seats in a single-class layout. After delivery of the last aircraft from this new acquisition, KLM Cityhopper will have more E190s in its fleet than any other aircraft type. All of the E190s will be deployed across KLM’s European network from Amsterdam’s Schiphol Airport.

“It is a major endorsement for the E-Jets program to see KLM Cityhopper continuing its fleet modernization with additional E190s,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. “Through its partnership with Air France, the combined group will operate INDIAN AVIATION

more than 50 aircraft, the largest fleet of E-Jets in Europe. The participation of BOC Aviation was key in the success of this transaction and shows the role such an important lessor plays in the E-Jets program.”

“This deal is a perfect example of the investments that KLM is making,” said KLM’s CEO Camiel Eurlings. “Not only do these investments make travel more comfortable, they also contribute to a more sustainable operation and greater efficiency, all of which will help us achieve our ambitious aims to reduce noise and carbon emissions.”

“We are delighted to work with KLM, by helping its subsidiary KLM Cityhopper to support its modernization plan with the E190, a versatile and excellent aircraft,” said Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation.

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 225 owned and managed aircraft operated by 56 airlines worldwide. Its fleet has an average age of less than four years.

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AAR signs inventory support deal with Flybe AAR, a global leader in the supply and repair of component parts for the aviation industry, has signed a multi-year inventory support deal with European regional airline Flybe.

Under the terms of the agreement, AAR will support Flybe’s operational needs for wheels and brakes inventory for its Q400 fleet. To that end, AAR has provided the UK-based airline with a large inventory of parts, under a recent sale/ leaseback agreement, for the airline to have on hand to support day-to-day requirements.

“This is another good example of how AAR has provided a flexible solution aimed at reducing the operational costs and enabling faster turnaround times for our customers,” said Carl Glover, Vice President, Sales, for AAR’s Aviation Supply Chain Group — Europe, Middle East and Africa.

AAR will house an additional pool of highdemand wheels and brakes inventory in its Amsterdam warehouse to support both Flybe and other Q400 operators in the region, providing them with a lower cost support solution.

“Like many of our customers in the EU, Flybe is working to adapt how it supports its fleet through outsourcing,” added Glover. “We are pleased to be part of the vendor community with which they have recently selected to partner.”

John Palmer, Director of Aircraft Maintenance at Flybe, said: “We are delighted to have concluded this transaction with AAR which gives us an excellent competitive financial outcome whilst ensuring our continuity of supply with an industry leading partner.”

Sukhoi Superjet 100 expands to Japan On July 30th, 2013 Yakutia Airlines has operated the first flight from Niigata at Japan Honshu Island to Vladivostok in the Russian Far East by Sukhoi Superjet 100.

Earlier in the day, the aircraft performed a ferry flight from Osaka to Niigata, where, following an old aviation tradition, the aircraft was welcomed with a water bridge courtesy of the Niigata Airport Fire Department.

Yakutia Airlines will also operate flights with the Sukhoi Superjet 100 from Niigata to Khabarovsk - the capital of the Far East Federal District of Russia. A flight from Vladivostok to Niigata will take 1.5 hours while passengers on a flight from Khabarovsk to Niigata may enjoy a comfortable Sukhoi Superjet 100 for two hours.

The turnaround flight Vladivostok-Niigata is scheduled on August 6 and 13.

July-Aug 2013

GLOBAL NEWS “It is exciting that our customer, the largest airline in Russia’s Far East, is successfully establishing new destination routes with Sukhoi Superjet 100 aircraft,” said Andrey Kalinovsky, Sukhoi Civil Aircraft Company (SCAC) President. “The airline recently started operations to China with our aircraft and now it is also offering flights to Japan. We wish success to Yakutia Airlines in continuing development of its route network to Asia. We are always ready to support our partners in implementation of their projects.”

During the Summer Season these flights will be performed on a charter basis. In case of a sufficient payload of the flights demonstrated, the airline will consider regular basis for these destinations.

Added Ivan Prostit, Director General of Yakutia Airlines, “Flights from the Russian Far East to Japan are not only expanding Sukhoi Superjet 100’s flight geography, but are also granting new opportunities for a dialogue between our two countries.”

This past winter, SCAC delivered two Sukhoi Superjet 100 to Yakutia Airlines, which can now operate flights in Yakutia’s extremely cold winter conditions.

In the first half of 2013, the two aircraft have operated more than 300 flights and flown for more than 750 flight hours.

Yakutia Airlines’ Sukhoi Superjet 100 aircraft, are now operating flights in both the Far East of Russia: from Yakutsk to Blagoveshchensk, Vladivostok, Yekaterinburg, Novosibirsk, Irkutsk, Magadan, Khabarovsk, and abroad - to Beijing and Kharbin.

The SSJ100 is a 100 seat regional jet designed, developed and built by Sukhoi Civil Aircraft Company (SCAC), in partnership with Alenia Aermacchi, a Finmeccanica Company.

Russian Helicopters announces certification of Ansat Russian Helicopters announced that the light multirole commercial Ansat with hydromechanical controls produced by Kazan Helicopters has obtained type certification from the Aviation Register of the Interstate Aviation Committee (AR IAC). The certificate was presented at an official ceremony at the MAKS 2013 International Aviation and Space Salon, and was attended by officials from the Russian Industry and Trade Ministry, the IAC, Russian Helicopters and Kazan Helicopters. The certificate confirms that the Ansat meets aviation regulations and can enter commercial operation.

Kazan Helicopters, the Russian Helicopters company that designed and produces the Ansat, began work on certification of the commercial hydro-mechanical version of the helicopter in 2011. Previously Kazan

Helicopters produced a fly-by-wire version of the Ansat; however, no commercial fly-by-wire helicopter had obtained certification anywhere in the world, and there were no established requirements for such a helicopter. To bring the helicopter to market more quickly it was decided to adjust the Ansat programme accordingly by switching to a traditional hydromechanical system. The helicopter retains the same take-off weight and technical parameters with the new controls.

“We decided to bring a helicopter with a traditional control system to the global market so as to avoid being dependent on certification of the fly-by-wire Ansat,” said Kazan Helicopters CEO Vadim Ligai. “Certification of the hydromechanical Ansat is an important achievement for Russian industry as a whole and for the helicopter sector in particular.”

SITA wins award from AFRAA SITA has been awarded Aviation IT Service Provider of the Year by AFRAA, the African Airlines Association. The award recognizes SITA for its broad portfolio of solutions for the air transport industry, its collaboration with customers to pilot emerging technologies, and its investment in research and development in innovative solutions for the industry.

The Aviation IT Service Provider of the Year award was presented to SITA at the gala dinner of the African Airlines Association’s Suppliers INDIAN AVIATION

and Stakeholders Convention (ASASC) by Sosina Iyabo, who is Secretary General of the African Civil Aviation Commission (AFCAC) and ICAO Deputy Director for Eastern and Southern Africa.

Hani El-Assaad, SITA President, Middle East, India and Africa, said: “SITA is uniquely dedicated to providing the very best communications and IT solutions for the air transport industry, so it is hugely gratifying to be recognized in this way by AFRAA. We have been

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working with African airlines and airports for 50 years, always seeking to help them improve both their operations and customer service.”

Dr. Elijah Chingosho, Secretary General of AFRAA, said: “Information technology is defining the cost competitiveness of airlines globally, and African airlines must not be late adopters of this trend. AFRAA’s partnership with SITA continues to bring to African airlines and airports cost-effective, cutting edge technology solutions tailored to our environment and needs.”

AFRAA is the trade association of airlines from the African Union member states. Its primary purpose is to foster commercial and technical co-operation among African airlines while representing their common interests.

China-assembled Legacy 650 completes maiden flight Harbin Embraer Aircraft Industry (HEAI), Embraer’s joint venture with Aviation Industry Corporation of China (AVIC), announced that the first Legacy 650 large executive jet assembled in China successfully completed its maiden flight.

Delivery of the first Legacy 650 is scheduled for the end of 2013.

Embraer’s test pilots flew the aircraft for about two hours and thirty minutes, assessing its handling and performance characteristics. The aircraft’s systems were evaluated, including flight control, communication, and navigation.

“The successful maiden flight of HEAI’s first Legacy 650 marks an important milestone not only in the Embraer-AVIC partnership, but also in the history of the Chinese executive aviation industry, as the jet is also the first large executive jet assembled by a joint venture in China,” said Guan Dongyuan, Senior Vice President of Embraer and President of Embraer China.

“The maiden flight is of special significance to HEAI, as it demonstrates to the market that HEAI is fully capable and ready to offer customers highquality executive jets assembled here in China,” said Yuri Capi, President of HEAI. The Legacy 650 entered service in late 2010.

With a range of 3,900 nautical miles (7,223 kilometers), it provides such nonstop flights as Beijing to Dubai and Hong Kong to Adelaide (Australia), while carrying four passengers under NBAA IFR conditions.

Since February 2012, when the first Legacy 650 was delivered to the Chinese market, the company has booked firm orders for 21 Legacy 650s and five options. To provide tailor-made and efficient customer support, Embraer is continuing to build its customer service network with several service centers authorized for executive jets customer services in the Greater China region.

July-Aug 2013

GLOBAL NEWS Emirates announces new services to Taipei Emirates has announced the launch of non-stop passenger services to Taipei, its 16th destination in the Far East. The service will commence from 10th February 2014, initially with six non-stop flights per week to Taipei’s Taoyuan International Airport.

The route will be operated by a three class Boeing 777-300ER equipped with eight luxurious private suites in First Class, 42 lie-flat seats in Business Class, and generous space for 304 passengers in Economy Class, along with gourmet cuisine in all classes served by Emirates’ multinational cabin crew.

Taipei, home to nearly seven million people, is an economic and cultural centre with renowned sights, attractions and a myriad of shopping options. The destination is famous for producing and exporting electronics, textiles, plastics and rubber, optical and photographic instruments and chemicals.

“Emirates SkyCargo has operated a dedicated freighter service to Taipei since 2003. Given its status as a global trading hub and the demand, it is a natural progression for Emirates to launch passenger services to Taipei,” said Barry Brown, Emirates’ Divisional Senior Vice President Commercial Operations East.

“Emirates’ home, Dubai is another worldclass trading centre and this launch is a strong example of not only linking two great commercial destinations, but also promoting international travel and trade. Through Dubai, Emirates offers its international passengers a one-stop connection from Taipei to 70 countries in the Middle East, Africa and Europe.

“We are confident that this new route will open up new trade opportunities across the Emirates network as well as support business and tourism travel to Taipei,” added Brown.

Emirates now operates services to 134 destinations in 76 countries from Dubai. Earlier this year Emirates launched services to Warsaw and Algiers, followed by Haneda, Japan in June.

Klein said, “I am honored by the trust being placed in me by the board, and I am excited by the opportunity that the global team at Sabre now faces as we write this company’s next chapter. Together with the entire senior leadership team, we are committed to carrying forward and accelerating our plans to evolve Sabre to meet the changing technology needs of our customers and the global travel industry.”

ATS and AJW Group form strategic alliance AJW Group and Aviation Technical Services (ATS) have signed a Memorandum of Understanding (MOU) to enable a comprehensive offering of integrated solutions for the global aviation market.

Together, AJW and ATS will provide operators with a much broader scope of capabilities through their combined strengths that address an increasing demand for comprehensive services and supply chain value propositions. Airlines looking to reduce non value added overhead costs while optimizing investments in inventory will benefit from this alliance.

Airbridgecargo appoints new VP, Japan & Korea Nagakazu Sagara has joined AirBridgeCargo Airlines as Vice President, Japan and Korea. This appointment is part of the Group’s succession programme in Japan and Korea. Katsuhiko Sagami, former Vice President/Area Director Japan & Korea, will continue to work as mentor and coach for the region until the year-end. VolgaDnepr Group and namely AirBridgeCargo highly appreciated and thanked Sagami for his invaluable contribution to the development and strengthening of the company’s business in this region.

Nagakazu Sagara has a 40-year career in the cargo industry. He joined Japan Airlines

following his graduation from Kagoshima University. At JAL he built a successful career, progressing from a cargo traffic manager to senior vice president, export. In 2010, Sagara joined TAS Express, a Toyota affiliate, as executive strategist, and later, following the purchase of the company by Mitsui-Soko Express (MSE) in 2012, became deputy general manager of the latter.

In welcoming Sagara, ABC said his knowledge in the air cargo field will greatly contribute to AirBridgeCargo Airlines’ further development in the region.

Sabre announces leadership transition Sabre Holdings announced that company President Tom Klein is succeeding Sam Gilliland as the company’s CEO. Klein will serve as CEO and President, while Gilliland will continue to serve on the board of directors.

Commenting on this transition, Gilliland said: “It has been a privilege to lead Sabre’s outstanding team of more than 10,000 technology and business professionals over the past 10 years as CEO. Together, we have diversified our business and made crucial investments to stay at the leading edge of technology for the travel industry. Tom Klein has been my partner in that endeavor and INDIAN AVIATION

I can think of no one better suited to take our company forward. He will benefit, as I have, from a talented and capable team that will help drive the company to even greater successes in the years to come.”

Klein has been with Sabre for over two decades serving in a broad variety of leadership roles in Latin America, North America, and globally. He assumed the role of president of the company in 2010.

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Through the deal, ATS will gain valuable access to AJW’s extensive Boeing and Airbus component inventories, as well as an expanded scope of component repair capabilities provided by AJW Technique. AJW will offer customers expanded PBH solutions benefiting from the range of services offered by ATS Components and repair services.

ATS President and CEO Matt Yerbic said, “This partnership will see two of the largest and most experienced companies in the industry working together to deliver innovative solutions for our joint customers.”

“We already serve a global customer base of more than 800 airlines with over 400 aircraft under contract,” said Christopher Whiteside, President, AJW Group. “The close partnership with ATS will help us to reach US airlines with a compelling and fresh approach, thereby furthering our joint ambitions to become the partner of choice for airlines seeking competitive advantage. This perfectly complements what we can offer and ensures that together we can truly drive down direct maintenance costs (DMCs) for operators.”

Over the course of the next few weeks, AJW and ATS will define the joint market solutions with a view to launching formally in September at MRO Europe, London: 25-26, September 2013 (Booth 1418).

July-Aug 2013

EVENT REVIEW

Paris Air Show concluded with fat orders The Paris Air Show concluded on a high note after global aviation industry players harvested a slew of contracts worth US$150 billion

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ierce competition among world leading aircraft makers was felt from the very beginning of the week-long show at Le Bourget airport. The world’s two giant aircraft manufacturers, Airbus and Boeing, continued their games to vie for the spotlight and woo customers.

Results showed that European aerospace heavyweight Airbus slightly outperformed INDIAN AVIATION

Boeing, the US aviation giant, in sales ahead of the closure of the first four days of the show dedicated to potential customers.

“This fiftieth International Paris Air Show was a great success with a record number of exhibitors, confirmed orders for more than US$150 billion and the Airbus A350 XWB fly-past with the President of the French Republic attending, just

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a few days after its maiden flight,” said Emeric d’Arcimoles, Chairman of the Show.

Airbus claimed to have pocketed orders worth US$ 68.7 billion. It received commitments for 466 aircraft, 241 of which were in firm purchase orders. By comparison, Boeing announced orders worth US$ 66 billion with orders and commitments for 442 aircraft. It was two and a July-Aug 2013

EVENT REVIEW PARIS AIR SHOW HIGHLIGHTS Exhibitors: • 2 215 exhibitors (4.8% up on 2011) from 44 countries • 52 000 m² of stands • 340 chalets amounting to 37 000 m² of covered surface • 43 000 m² of outdoor exhibition surface including 25 000 m²of built constructions • 30 national pavilions

Visitors: • Trade: 139 273 visitors (8% down on 2011) • General public: 176 299 visitors (13.5% down on 2011)

Official delegations/ visits: • President of the French Republic (Friday) + Prime Minister (inauguration) + 11 French ministers • 285 delegations attended including 151 official Ministry of Defence delegations, 70 institutional delegations, 47 Ministry of Transport delegations and 17 other official delegations (industry, aerospace...), totalling 1 835 VIPs • 102 countries represented • Accredited journalists: 3,100 • Aircraft presented: 150

half times the total orders the two companies collected at last year’s show, in Britain. At last year’s global aerospace bazaar, held in Farnborough, England, Airbus and Boeing together had $ 54 billion in new jet orders and commitments. Most of those deals were for the Airbus A320neo, a version of the popular A320 single-aisle aircraft with more fuel-efficient INDIAN AVIATION

engines, and Boeing’s competing single-aisle aircraft, the 737 Max, which also uses the next generation of engines.

The battle between Boeing and Airbus in the lucrative market for long-haul aircraft has dominated this year’s event as these models offer aircraft makers the biggest profit margin.

Airbus used its new fuel-efficient A350s to

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compete with Boeing 787s and 777s.

All of the new aircraft models are made of lighter composite materials which help reduce fuel consumption and pollution.

The A350 XWB which successfully completed its second test flight during the show brought the company US$ 21.4 billion’s worth of orders and commitments from four customers.

Meanwhile, Boeing launched its latest model, the 787-10 Dreamliner this year with orders and commitments for 102 aircraft from five customers from Europe, Asia and North America at a cost of US$ 34.3 billion.

Boeing considers its new orders a pick-up for its July-Aug 2013

EVENT REVIEW PARIS AIR SHOW ORDER BOOK • Ryanair converted previous commitments into a huge order for 175 Boeing 737-800s, adding to the 303 -800s that Ryanair flies. As well, they might be placing an order for the 737 MAX by year-end.

• Boeing announced that the 737 MAX’s Entry into Service (EIS) will be the 3rd quarter of 2017, about 6 months earlier than previously expected. Among other details released about the 737 MAX, the flight deck will have 4 large “landscape” displays, and the nose will be 8 inches higher to accommodate the larger fan diameter of its advanced LEAP-1B engines.

• Leasing and finance company, CIT Aerospace, ordered 30 737 MAX 8s.

• Czech charter operator, Travel Services Airlines, ordered 3 737 MAX 8s.

They’re already a 737 operator, with 28 aircraft.

• Oman Air picked up 5 737-900ERs, adding to their current fleet of 17 737 NGs. • Adding to the growing A350 order book, Air France-KLM ordered 25 A350900s along with options to double the order.

• Singapore Airlines finalized their order for 30 A350-900s, and can choose between the -900 and -1000 for an additional 20 options.

• United Airlines converted 25 previous orders for the A350-900 to the A3501000, and added 10 more for a total of 35 A350-1000s to update their fleet.

• SriLankan Airlines signed a Memorandum of Understanding (MOW) for 6 A330-300s and 4 A350-900s.

• Spirit Airlines ordered 20 A321s, and converted 10 previous A320 orders to the A321.

• Leasing company, Hong Kong Aviation Capital, signed an MOU with Airbus for 40 A320neo and 20 A321neo aircraft • African-based carrier, Syphax Airlines, signed an MOU to acquire 3 A320neos • Horizon Air converted 3 previously-booked options for Bombardier’s DHC-8402 (Q400) to firm orders.

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787 Dreamliner which was grounded for several months this year due to battery problems. “Our ongoing investment in the 787 family is wellfounded,” said Boeing Commercial Airplanes President and CEO Ray Conner.

Analysts said the booming orders for long-haul aircraft came as the global economy shows signs of recovery, while the demand by some airlines are growing as they look to renew their fleets.

But analysts also cautioned that coming years are unlikely to see a similar boom in jet purchases.

One reason is that a frenetic buying spree over the past three years has left Airbus and Boeing with burgeoning order books — and everlonger waiting times for airlines to receive their new planes. Most of the airlines and leasing companies that ordered new Airbus A350 or Boeing 787 jets at the Paris Air Show this week said they did not expect to begin receiving them for four to five years.

At this year’s show, small aviation competitors also performed well.

ATR, a European joint venture, won orders of 55 aircraft in a deal worth US$ 2.1 billion.

Brazil’s Embraer, which makes smaller-capacity commercial aircraft, successfully launched its new generation of regional jets at the show, gaining an order of 215 new aircraft and commitments of 165. Canadian Bombardier also announced dozens of orders in two separate deals worth US$ 1.3 billion.

This all-new, large-scale exhibition– Careers Plane–covering 3000m2 of outdoor space– provides an opportunity to discover 50 trades and meet the people who design, produce and sell aircraft. This forum took place during the three public days, from 21 to 23 June 2013.

The aerospace sector’s leading employment, careers and training fair, the Air & Space Forum is the place for the general public to meet companies, educational and training establishments and trade associations to find out about the careers and courses available in the aerospace industry, air transport and the defence sector.

It helps to promote the trades and professions that are recruiting, as well as initial scientific, technological and vocational training courses, to a wide audience.

Emeric d’Arcimoles pointed out that “the Careers Plane exhibition, together with the GIFAS Air & Space Forum, enabled 70, 000 mainly young visitors to meet the industry’s employees – engineers, technicians and operators – who presented 50 aerospace trades practiced in France. This recruitment and employment initiative showcases the sector’s occupations in the best possible light.”

The 51st International Paris Air Show will back at Le Bourget from 15 to 21 June, 2015.

July-Aug 2013

SPECIAL REPORT

Speakers at Industry insight sessions

A collaborative effort As technology and innovation continue to make air transport more dynamic than ever, it’s the smart collaboration that will empower all players in the aviation industry’s complex ecosystem. The recently-concluded Air Transport IT Summit 2013 was the testimony to the fact that collaboration will determine the future of the air transport industry.

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he Potential of Collaboration was the theme of the 2013 Air Transport IT Summit organised by the aviation IT giant, SITA at Brussels, June 18-20. The annual affair, clubbed with an exhibition, attracted over 350 participants, including speakers, delegates, exhibitors and the media.

The global aviation industry looks forward to this annual event, which is in its 14th year, where experts present industry insight sessions. Over the years, this summit has grown in stature, attracting hundreds of airline industry professionals from almost every corner of the globe.

This year, the Industry Insight Sessions brought together presentations from airline CEOs, CIOs and IT experts bringing their predictions into meeting the needs of the next generation of airline passengers, the mobile explosion, and tracking the challenges of business intelligence and big data.

Every year, SITA jointly with its partner Airline Business publishes a survey on IT trends. Over INDIAN AVIATION

the next three years, all airlines plan to invest in IT systems which will allow them to get to know their passengers better and deliver tailored services directly to them, according to the 15th annual SITA-Airline Business IT Trends Survey.

This year, 100 per cent of airlines surveyed plan to invest in business intelligence (BI) solutions, which allow them to know more about their customers and have better information for decision making in their operations. This is a huge jump from last year, when one in five airlines had no plans at all. By 2016, 97 per cent also plan investments in mobile passenger services and personalization. Together these will help boost sales via direct channels, from 54 per cent up to 67 per cent, and change how airlines deliver services to passengers.

At the launch of the 2013 Airline IT Trends Survey Results, Francesco Violante, SITA CEO, said, “All airlines are investing in business intelligence to improve their operations and boost revenues. We see a strong desire

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to increase revenues using techniques borrowed from the retail industry, including personalization. Nearly three quarters of airlines rate business intelligence for sales and marketing as a high priority. The airlines’ investment plans show the future of the industry is smarter, more mobile and more personal.”

The need for investment in business intelligence is evident. Only 9 per cent of airlines currently rate data quality as meeting all their requirements, while just 7 per cent have achieved the necessary integration.

“Sharing and integrating data is fundamental to successful business intelligence solutions.

To make it work, all parties across our industry need to collaborate. By sharing data and working together, we can maximize return on investment and deliver a better passenger experience, as well as improved financial performance,” the SITA CEO added.

Over the last three years, offering mobile services to passengers has topped airlines’ investment July-Aug 2013

SPECIAL REPORT

Sita Horizon Demo

Networking at exhibition venue

By 2016, nine out of ten airlines plan to sell tickets via mobile phones. They expect to be rewarded with a leap in mobile sales to more than US$ 70 billion by 2016, or 10 per cent of total sales, up from just below 3 per cent currently list. It retains the number one place with 97 per cent of airlines now investing, or planning to invest, in this area in the coming three years. By 2016, nine out of ten airlines plan to sell tickets via mobile phones. They expect to be rewarded with a leap in mobile sales to more than US$ 70 billion by 2016, or 10 per cent of total sales, up from just below 3 per cent currently. By using this and other channels, airlines aim to reduce their dependence on indirect sales and open up the opportunity to maximize ancillary sales. Mobile phones, kiosks and social media will represent nearly 14 per cent of ticket sales by 2016, while indirect sales through GDSs will reduce from 46 per cent to just 33 per cent of sales in the same time period. The airlines move to use mobile and social media channels will benefit India in a big way as it has the largest mobile user base in the world and the channels like Facebook is very popular with the Indian net savvy population. To take advantage of these phenomena the Indian carriers have to extensively use these channels for their revenue generation.

Violante said, “Mobile’s dominant role is clear.

Airlines continue to focus on services available via the airline website, such as flight search INDIAN AVIATION

and check-in. But in an effort to differentiate passenger services a new battleground of mobile functionality is emerging. The result will be a much deeper integration of personalized mobile services at every step of the journey for passengers on the move.”

Check-in apps, for example, are already available from 61 per cent of airlines and flight search from 65 per cent. The focus for these airlines will now shift over the next three years to add new services, such as missing bag reporting (60 per cent of airlines), re-booking (63 per cent), and customer feedback (57 per cent).

Currently, 53 per cent of airlines provide mobile boarding passes through their own airline application and this is set to rise to over 80 per cent in 2016. Third-party travel wallets, such as the Apple Passbook, Samsung Wallet and Google Now, are also starting to feature. Today, only 21 per cent of airlines provide boarding passes through other apps, but it will reach 62 per cent in three years, giving passengers more choice.

The main challenges airlines face when trying to implement mobile services are the pace of technology change, too many platforms and system integration. To keep up with all

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the changes, airlines may increasingly use APIs such as SITA’s Boarding Pass from developer.aero.

This year’s survey revealed that ancillary revenue is of growing importance. Direct sales channels, such as the airline website, currently drive these revenues. Despite the fact that indirect channels account for nearly half of ticket sales, airlines earn on average nine times more ancillary revenue through direct channels. This looks set to continue, with 89 per cent of ancillary revenues expected through direct channels by 2016, an increase from 87 per cent today.

As well as boosting ancillary opportunities, direct sales save distribution costs. Over the next three years, nearly half of the airlines (49 per cent) plan major programs to upgrade their core passenger management systems as the shift to more direct sales across multiple channels continues.

The Airline IT Trends Survey is an independent poll of senior IT personnel working within the top 200 passenger carriers. Airlines representing half of the global passenger traffic responded to this year’s survey: 14 per cent of respondents are classified as low cost carriers, and 26 per cent are airlines carrying over 20 million passengers.

SITA unveils next-gen passenger services system SITA unveiled its next generation passenger services system (PSS), Horizon, at the summit.

SITA is the only major supplier to design and build an end-to-end passenger system on a third generation platform.

As the technology landscape is changing with July-Aug 2013

SPECIAL REPORT

Francesco Violante & James Hogan

One of many Indian vendors of SITA

increasing use of mobiles and new devices, airlines need the flexibility to be able to deploy their services through any channel – both current and future – in a simple way. More than 150 airlines and ground handlers across the world currently use SITA’s PSS. They, and others, will have access to the capability to meet and adapt to changing market needs with SITA’s new, agile Horizon platform.

In 2010, fewer than 40 per cent of airline sales were made through direct channels. By 2016, airlines expect that to rise to 67 per cent. The PSS lies at the heart of the airline: it is the engine that drives the business.

“Horizon is a completely new PSS that was designed from the ground up, with the latest technology and an agile service-oriented architecture. After many years of investment, development and consultation with our airline and ground handler customers, we now have a PSS that is an integrated application infrastructure that works in our new era of multiple channels and demand for instant tailored requests,” said Violante.

Horizon is designed specifically to manage this new technology landscape. This third-generation PSS is built on an agile platform using the latest technologies, unlike first and second generation systems that still depend on legacy core systems.

Over the decade, SITA will deliver infrastructure and end-user computing solutions powered by the Air Transport Industry (ATI) Cloud, which will ensure up-to-date services are continually available as Etihad expands its global presence.

Etihad is also adopting new innovative services including SITA CrewTablet, which its cabin crew will use to access passenger and operational data via tablets. This end-to-end mobility solution designed specifically for the airline industry will enhance in-flight services and customer interaction for Etihad’s more than 10 million passengers.

James Hogan, Chief Executive Officer of Etihad, said, “We continue to work together on evolving and new technology which not only will reduce our costs and increase our productivity, but also will contribute to improvements in the service we continue to offer to our guests.

Violante said, “Our aim is to reduce the complexity of IT by providing flexible, global solutions so Etihad can focus on customer excellence and growing its business. Together we will explore new solutions that will meet Etihad’s unique demands in the years ahead.”

Ten year partnership pact with Etihad

SITA also entered into a seven-year deal with Miami International Airport to implement technology to transform the experience for the airport’s nearly 40 million passengers. This is part of the airport’s US$ 6.4 billion capital improvement program and includes implementation of SITA’s sophisticated self-service technologies and virtualization.

SITA and Etihad Airways entered into a tenyear strategic partnership which will provide the airline with the latest global infrastructure solutions, while reducing the cost and complexity of IT. INDIAN AVIATION

Signs deal with Miami and São Paulo airports

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As part of the deal, Miami International will be the first airport in North America to have the passenger processing platform, SITA AirportConnect Open, deployed in a virtual environment, across the entire airport. The implementation will also meet the industry’s latest common-use passenger processing system (CUPPS) standards.

Virtualization allows the airport to run the latest technologies and incorporate upgrades to its system efficiently and cost-effectively, while allowing airlines to seamlessly operate at any desk, gate or work station throughout the airport.

Besides Miami airport, in Latin America’s GRUSão Paulo International Airport has also chosen SITA to transform its operations and optimize the flow of aircraft as it gets ready for the influx of international visitors for the 2014 FIFA World Cup Brazil and the Rio 2016 Olympic Games.

SITA’s next generation airport management system (AMS) will simplify the airport’s operations to deliver a world-class passenger experience.

For passengers a very visible change will be 1,000 new electronic display screens throughout the airport displaying the latest flight information. They will also give passengers up-to-date information on boarding locations, baggage belts and other important information via seamless, automated audio and visual messaging.

The new technology from SITA will give Brazil’s largest airport proactive control over all operations, benefitting its millions of passengers by improving their journey through the airport.

It will also enable the airport and its stakeholders - including airlines, customs, immigration and ground handlers - to collaborate around the same real-time information and make fullyinformed decisions on resources and other issues.

SITA’s revolutionary airport management system, which GRU Airport will use, includes two key innovations: AirportCentral and Airport Orchestrator. Bringing together information from across the airport and from multiple systems, they present data in an intelligent and intuitive way on “action boards”. The AirportCentral Airport Operational Database will act as a central point for proactively controlling operations and facilitating financial controls.

AirportResource Manager will empower planning and help coordinate real-time management of both staff and equipment, including departure gates, baggage carousels and check-in desks.

The airport will launch the new system in terminals 1, 2 and 4 by the end of 2013: it will go live in the new terminal 3 once construction is completed in 2014.

July-Aug 2013

INS Vikrant reborn in indigenous avtar

When the country’s first indigenous aircraft carrier comes into full service in 2018, India will join an elite club of nations including Britain, France, Russia and the USA

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July-Aug 2013

COVER STORY

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July-Aug 2013

COVER STORY

“The launching of the IAC marks just the first step in a long journey, but at the same time, an important one. It is indeed a proud moment for the country to witness our efforts at achieving self-reliance in the field of warship design and construction, as only a very few advanced countries in the world possess the capability to design and build aircraft carriers.”

–Defence Minister AK Antony

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midst chanting of hymns from the Atharva Veda, Vikrant, India’s first aircraft carrier, decommissioned in 1997, was reborn on August 12 as Elizabeth Antony, wife of the Defence Minister AK Antony, christened India’s first Indigenous Aircraft Carrier (IAC) as ‘Vikrant’ meaning “courageous” or “victorious” in Sanskrit.

In a colourful ceremony filled with traditional pomp and fervour at the Cochin Shipyard Limited in Kochi, Mrs Antony launched ‘Vikrant’ in the presence of AK Antony, the Defence Minister; GK Vasan, the Minister of Shipping; Admiral DK Joshi, the Chief of Naval Staff; Commodore (Retd) K Subramaniam, Chairman and Managing Director, CSL, and other officials of the Ministry of Defence and Ministry of Shipping. In addition, a multitude of Naval officers, yard workers and a few members of the Steel Authority of India Limited (SAIL), the manufacturers of the indigenous warship grade steel, were also present.

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At the launch, marking the end of Phase- I of the project, the imposing ramp of the 37,500 tonne Short Take off but Assisted Recovery (STOBAR) Carrier boasted the indigenous design and build capabilities of the country. The ship has attained its designed length of about 260 m and is almost at its maximum breadth of 60 m. The main landing strip is ready. Over 80 per cent of the structure, containing about 2300 compartments has been fabricated, over 75 per cent has been erected, all the major machinery, such as the two LM2500 Gas Turbines developing a total power of 80 MW, the diesel alternators capable of producing about 24 MW and the main gear box have been fitted. Soon after Vikrant floated perfectly upright, she was launched out into the Ernakulam Channel in a pontoon assisted precision manoeuvre. Vikrant was moved out of the building dock to be positioned in the refitting dock where the next Phase of outfitting will be completed.

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Describing the occasion as a ‘momentous’ one, Antony said, “The launching of the IAC marks just the first step in a long journey, but at the same time, an important one.” He said it was indeed a proud moment for the country to witness our efforts at achieving self-reliance in the field of warship design and construction, as only a very few advanced countries in the world possess the capability to design and build aircraft carriers.

Antony said, “We must continue the process of strengthening indigenous capability towards securing our maritime interests. Our Navy must continue to maintain high operational readiness at all times to ward off any likely misadventure against our national interests,” he added.

The Defence Minister urged the Indian industry to participate whole-heartedly in our shipbuilding programmes and further consolidate our strength in this field.

Speaking on the occasion, the Shipping Minister GK Vasan said by launching this great warship which is one of the most important ships for the Indian Navy, Indian shipbuilding has demonstrated its technical capability and expertise.

The design and construction of the Indigenous Aircraft Carrier was sanctioned by the government in January 2003. The keel of the ship was laid on 28 Feb 2009 by AK Antony. Vikrant marks a special feather in indigenous defence capabilities—this being the first ever aircraft carrier to be designed by the Directorate of Naval Design of the Indian Navy, the first warship to be built by Cochin Shipyard Limited and the first warship to be built entirely using indigenously produced steel.

The construction of the ship is a truly pan Indian effort with active participation of private and public enterprises. The steel has come from SAIL’s plants in Raurkela in Orissa, Bokaro in Jharkand and Bhilai in Chattisgarh; the Main Switch Board, steering gear and water tight hatches have been manufactured by Larsen and Toubro in its plants in Mumbai and Talegaon; the high capacity air conditioning and refrigeration systems have been manufactured in Kirloskar’s plants in Pune; most pumps have been supplied

by Best and Crompton, Chennai; Bharat Heavy Engineering Limited (BHEL) is supplying the Integrated Platform Management System (IPMS); the massive gear box is supplied by Elecon in Gujarat; the tens of thousands of electrical cable is supplied by Nicco industries in Kolkata; Kolkata is also where the ship’s anchor chain cable is manufactured.

Vikrant will be capable of operating an aircraft mix of the Russian MiG-29K and LCA (Navy) fighters being developed indigenously by HAL. Its helicopter component will include the Kamov 31 and the indigenously developed July-Aug 2013

COVER STORY ALH helicopters. The ship’s ability to sense and control a large air space around it will be enabled by modern C/D band Early Air Warning Radar, V/UHF Tactical Air Navigational and Direction Finding systems, jamming capabilities over the expected Electro Magnetic (EM) environment and Carrier Control Approach Radars to aid air operations. Long Range Surface to Air Missile (LR SAM) systems with Multi-Function Radar (MFR) and Close-In Weapon System (CIWS) will form the protective suite of the ship.

All weapon systems onboard the carrier will be integrated through an indigenous Combat Management System (CMS), being manufactured

by Tata Power systems. The ship’s integration with Navy’s Network Centric Operations will provide force multiplication.

Design of this prestigious ship has been undertaken by the Directorate of Naval Design (DND) of the Indian Navy. Created in 1956 as the Corps of Naval Constructors, to realise the dream of being a builder’s Navy through indigenisation, DND has successfully designed over 17 different classes of warships, to which around 90 ships have already been built within the country. The Delhi class destroyers, with a displacement of about 7000 tonnes, were the biggest warships designed by DND so far.

Designing of the Vikrant, at almost 40,000 tonnes speaks of the maturing of the capabilities of DND and represents a feather in the cap of the designers particularly as it is the first aircraft carrier of its size in the world with some unique features such as Gas Turbine Propulsion.

The seamless hull and smooth lines of the ship stand as testimony to the high production standards of Cochin Shipyard Limited (CSL).

CSL, a mini Ratna PSU, has earned a reputation for quality construction and timely delivery. Till now, CSL had the distinction of building the largest ship in India i.e., 93,500 tonne Aframax tankers. However, this complex integrated construction project enabled by a Rs200 crore infrastructure augmentation plan involving large cranes, workshops and heavy duty machinery has seen the shipyard maturing into a competent warship builder.

Vikrant will now enter the second phase of construction which will see the outfitting of the ship, fitment of various weapons and sensors, integration of the gigantic propulsion system and integration of the aircraft complex (with the assistance of M/s NDB of Russia). The ship will then undergo extensive trials before she is handed over to the Indian Navy by around 2016-17.

The earstwhile INS Vikrant was acquired from Great Britain and commissioned on March 4, 1961. In its 36 years of glorious service, India’s first aircraft carrier was at the centre of INDIAN AVIATION

INS VIVRANT • INS Vikrant with a capacity to carry 36 fighter aircraft.

• The ship, which has a length of 260 m and breadth of 60m,

has been designed by Directorate of Naval Design and is being built at Cochin Shipyard Limited.

• About 90 per cent of

INS Vikrant’s hull has been built indigenously with DRDO and SAIL supplying high quality steel.

• The indigenous component of the vessel was 90 per cent in the float category, 60 per cent in the move category and approximately 30 per cent in the flight category.

Except about half the quantity of bulb bars imported from Russia, the entire steel used for the vessel was India-made.

• By 2016, its propulsion would be set to trials and basin trials would begin in 2017. Weapon trials would be conducted by the Navy after its handing over in 2018.

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“Vikrant will be capable of operating an aircraft mix of the Russian MiG29K and LCA (Navy) fighters being developed indigenously by HAL. Its helicopter component will include the Kamov 31 and the indigenously developed ALH helicopters.” action in the 1971 operations for liberation of Bangladesh. Having seen many years of service as a CATOBAR (Catapult Assisted Take Off but Arrested Recovery) carrier working an angled deck and operating Sea Hawks, Alizes and Seakings, INS Vikrant was transformed into a STOVL carrier to operate Sea Harrier jump jets.

INS Vikrant was decommissioned on 31 Jan 1997, after 36 years of glorious service under the Indian ensign.

With the launch of IAC, ‘Vikrant’ the Indian Navy is well on its way to demonstrate its comfort with the practiced art of trapped landings and angled deck operations.

July-Aug 2013

COVER STORY

Navy’s Boeing P8I touches down Andaman and Nicobar islands The Boeing P8I, a Long Range Maritime Reconnaissance Anti-submarine Warfare (LRMR/ASW) aircraft of the Indian Navy, made its maiden landing at the INS Utkrosh airfield on Tuesday, 06 Aug 13.

Piloted by the Squadron Commander (designate), Commander HS Jhajj, the aircraft under call sign ‘IN 321’ was welcomed to the islands by the Commander-in-Chief, Andaman

& Nicobar Command and Air Marshal PK Roy, AVSM, VM, VSM, ADC at an event that was attended by senior officers of the Unified Command. The aircraft that landed is the same that arrived in India in May this year. It is the first of the eight aircraft that are being procured under a contract signed in 2009 and is based on the Boeing 737-800 platform. The aircraft is based at INS Rajali, Arakkonam.

The P8I is the Indian Naval variant of the P8A ‘Poseidon’ aircraft that Boeing has developed for the US Navy and India is the first international

customer of this aircraft. The aircraft is equipped with both foreign as well as indigenous sensors for maritime reconnaissance, anti-submarine operations and electronic intelligence missions.

The aircraft is fully integrated with state of the art sensors and highly potent anti-surface and antisubmarine weapons.

The induction of these aircraft into the Indian Navy has provided a quantum leap to India’s maritime surveillance capability in the Indian Ocean Region and enhanced the Navy’s strategic reach.

Rear Admiral Srinivas Kanugo takes over as first ACNS (AM) MiG 29K and Boeing P 8I and the planned induction of a large number of helicopters. Naval aviation is also seeing attendant needs for growth in infrastructure with addition of new air stations like INS Parundu in Ramnathapuram, INS Baaz in Campbell Bay and multiple air enclaves across the country.

Commissioned on 01 Aug 81, Rear Admiral Srinivas Kanugo is an air electrical engineer who has held numerous challenging appointments in ships and air establishments during his near 32 years of commissioned service in the Navy. An alumnus of JNTU College of Engineering, in Anantapur (AP), Admiral Kanugo did his Masters degree from Institute of Armament Technology, Pune. He has held numerous prestigious appointments such as Director, Naval Institute of Aeronautical Technology, Kochi; Chief Controller, Naval Aeronautical Quality Assurance Service; Commodore Superintendent, Naval Aircraft Yard (Kochi), Chief Staff Officer (Technical), Headquarters Naval Aviation and Principal Director, Directorate of Naval Air Materiel at IHQ MoD (Navy).

The officer was awarded Vishist Sewa Medal (VSM) in 2013 for his outstanding contribution to the Indian Navy.

Rear Admiral Srinivas Kanugo assumed office as the first Flag Officer in the newly created post of Assistant Chief of Naval Staff (Air Materiel) [ACNS (AM)] at the Integrated Headquarters MoD (Navy), on 17 July 2013.

The post has been created as the single point of responsibility for all matters related to aviation technical management of the burgeoning air arm of the Indian Navy. The ACNS (AM) will be responsible for planning and co-ordination of new induction air equipment and systems, repair and overhaul of all existing aircraft, aero engines and associated equipment and systems as well as provisioning of air stores.

The air arm of the Indian Navy operates over 200 aircraft with over 20 different types including fighters, fixed wing Maritime Reconnaisance aircraft, helicopters and Unmanned Aerial Vehicles. The air arm, which recently marked its diamond jubilee is on the anvil of transformation in capability and size with the induction of potent platforms such as the

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July-Aug 2013

FACE TO FACE

Connecting the world Mr. Sanjay Handu Director, ADM Business Unit, TE Connectivity

Q. TE Connectivity, erstwhile Tyco Electronics has been in India for the last two decades. Why and when did it establish its footprint in India and what is its set up today?

TE Connectivity has been playing key role in connecting power, data and signal in everything from automotive and aerospace to broadband communications, consumer, energy and industrial applications. We speak to Sanjay Handu, Director ADM TE Connectivity, to understand the technology leader’s strategy and valuable contribution to Indian aerospace industry. Here are the excerpts: INDIAN AVIATION

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Worldwide, TE Connectivity is synonym for reliable connectivity solutions, which enable optimum performance of devices and equipment for all industry domains. Globally a US$ 13 Billion global connectivity leader with over 500,000 products, 20,000 patents issued or pending and 20 global design centres, In India, TE Connectivity has been active for the last two decades with 7 manufacturing facilities, 11 sales & marketing offices employing over 4000 people at multiple locations. As a company that stands for Innovation, TE reinvests approximately 5% of sales per year into research, development and engineering of new technologies. For the second consecutive year, TE was recognized as a Top 100 Global Innovator by Thomson Reuters.

After China, India holds very high potential for growth in the world and is a prospective market for the business of connectors and interconnection solutions. We are no. 1 in market position in virtually all industries that we are present in. For example, we are rated no.1 in structured Cabling in India by market share. Today we have broadest range of connectivity solution with over 500,000 July-Aug 2013

FACE TO FACE board-level relays for the demanding Space environment. For applications involving high speed and high density connectors, we offer a multitude of options for connectors with .050 and .025 inch center-to-center spacing. We are also developing a new modular approach to connectors and our options will include signal, power, RF, fiber and high speed in one small form factor connector.

Aerospace

live products in our portfolio. With favorable Government policies on electronic manufacturing and the vision to transform India into a global hub for electronic system design and manufacturing, TE will contribute even more by producing local products locally in India for local consumption.

In India we locally design and manufacture close to 30% of our products. We already have a large manufacturing footprint providing world class service to our customers. As the demand for electronics grows in this country which is projected to increase from US $45 billion in 2009 to US $400 billion by 2020 (According to Elcoma report by ELCINA) the content of TE products in any electronic device will increase significantly.

teams work relentlessly at identifying and developing the right vendor partners who can align with TE’s values and technical requirements.

These efforts have resulted in close to half of TE needs now being sourced in India.

Q Has the company developed Indian Tier 2 and Tier 3 vendors? Please also mention about the Indian Supply Chain Management for your factories in India

Defense

TE aims to become part of global supply chain of major defence equipment producers by leveraging cost arbitrage in component design and manufacturing in India. Over the past decade TE has focused on developing local vendors to meet its needs of material and components. This is a much required element of the supply chain design that allows quick response times to customer needs.

TE supplier development

Q. Although TE Connectivity products portfolio encompasses diverse industry segments, kindly elaborate about the Aerospace, Defence and Marine applications.

TE Connectivity provides a Comprehensive end to end range of connectivity solutions for harsh environment for Aerospace, Defense requirements.

Our play in the defense sector is across a wide range of solutions. If we look at Missile Defense, TE supplies a wide range of products from connectors and back shells to harnesses and components for missiles and launchers. We also offer high performance, small form factor

With respect to space applications, the products need to withstand extreme conditions and demand the best in lightweight composition, innovative design and reliability. Our Aerospace solutions are segregated into commercial and military aerospace with products built to last and designed to meet rigid military requirements while increasing reliability and overall system performance. High performance military and commercial RF offerings range from small form factor to larger discrete connectors with speeds up to 40 GHz. In this segment, the demands of the fixed, rotary wing and UAV markets depend on products that are reliable, maintainable, cost effective and technologically advanced and that is why, TE is an integral part of this growing industry.

Marine Military marine combat vessels, submarines and other ships operate under rigorous demands. TE components meet those demands, helping marine crafts operate safely, reliably, and efficiently. Military marine markets serve Aircraft Carriers, Amphibious Ships, Auxiliary and Support Ships, Submarines, and Surface Combatant Vehicles. Some of the products we have specialized are Cable Ties and Sealing Products, Dipping Sonar Cables, High Performance Relays and Contactors, High Speed Copper Cables, Maintenance and marine specific Repair Kits. We also supply Marine Wire and Cable (esp. control, instrumentation (including Engineering Proposal Design (EPD)), Rugged Optics, Signal and Power Connectors, Subsea Cabling solutions, Terminals, Splices and Tubing etc.

TE provides connectivity for drones to function at high and medium altitudes through its connectors, wire, fiber and harnessing components. We also work with India’s Defense establishments through

“We have already invested Rs 600 crore in India and recently announced an additional investment of Rs 300 crores in India to set up an integrated manufacturing plant in Bangalore and expand some existing facilities over the next 2-3 years.”

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July-Aug 2013

FACE TO FACE strategic Partnerships; harvesting the technology for local players. TE content is also there in for bringing Innovation in products in meeting end-to-end challenge of Size, Weight and Power (SWaP).

TE’s KILOVAC high-voltage relay is being used in the Curiosity Rover to help carry out the mission to look for evidence of past or present habitable environments on Mars. TE’s relays have a lightweight, compact design that makes it ideal for the Rover and suitable for extreme temperatures and other severe environmental factors. Also TE works with the entire airline supply chain to create weight saving interconnection technologies for making lighter aircraft. TE’s connector designs produce a weight saving of 20% to 30% which creates a more efficient aircraft and reduces fuel consumption and emissions. We are at the forefront of technology for unmanned vehicle systems in both military and non-military applications (eco, wildlife as well as for police use).

Q. Kindly tell us about TE Connectivity’s contribution to the Indian commercial aviation, space and defence industry.

As India is moving to transform itself from a regional power to global power the aerospace and defence sector is increasingly occupying more and more space in country’s long-term strategic planning. A US $10 billion worth 126 medium multi-role combat aircraft (MMRCA) deal is just a case in point. Estimates how that India air force will have more than 1000 fighter jets and around

2015 time frame. So opportunities are immense for component players like TE. However these engagements have a long lead time which spans through many years. Also, TE products have to be specked in at the design stage for it to become indispensable for at least many years.

Q. What is the revenue share from India on the overall revenue of the company? Also tell us what percentage of this revenue does Aerospace, Defence and Maritime contribute?

“Our aerospace solutions are segregated into commercial and military aerospace with products built to last and designed to meet rigid military requirements while increasing reliability and overall system performance.”

60 squadrons by 2030 ( According to a recent CII-KPMG report). India will be spending more than 80 billion on capital acquisition in 2010-

and applications.

In India, we are a INR 1400 crore company, consisting of all Business units/segments.. Globally, as in India, the AD&M unit/segment contributes a smaller but extremely significant contribution to the organizations revenues. These revenues are typically generated from high technology / mission critical products

Q. What importance does India hold for your company and what kind of investment do you envisage for the Indian Aerospace, Defence and Maritime by TE Connectivity in the future We have already invested Rs 600 crore in India and recently announced an additional investment of Rs 300 crore in India to set up an integrated manufacturing plant in Bangalore and expand some existing facilities over the next 2-3 years.

At the new plant in Bangalore, TE will design and manufacture next-generation connectivity solutions for multiple industry verticals, including automotive, aerospace, defense, marine, enterprise networks, telecom, data communications, industrial, energy, consumer devices, appliances, circuit protection and relays. The new plant, which will measure 280,000 square feet, will create new jobs in the areas of assembly, packaging, molding, stamping, tooling machine components, copper wire, optical fibre and cable processes..

This new plant will further add to the existing technical and manufacturing foundation that TE has built in India over the past 20 years.

It will help drive up localized manufacturing and sourcing; a move that aligns well with the country’s need to indigenize manufacturing. It will also help drive down delivery times to customers and thereby reduce project lead times. This is the next step in TE’s belief and commitment to the Indian market space.

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July-Aug 2013

EVENT PREVIEW

MRO India 2013

Time to regroup B

uilding on the success of last two editions—MRO India 2011 and MRO 2012—the 3rd international networking conference & exhibition on maintenance, repair and overhaul (Civil & Military), MRO India 2013, is preparing to break its own records as number of bookings already exceeding last figures.

The MRO India has emerged as the only national-level dedicated event for civil and defence MRO industry. “The industry was lacking a common platform to raise its issues.

The show is very important to bring about realization amongst the Indian bureaucracy about the requirement of a robust MRO industry in India. It does an impeccable job of bringing together the MRO companies to discuss issues and raise it on a common platform,” said Bharat Malkani, Chairman, Max Aerospace & Aviation Pvt. Ltd, who has been attending MRO India from its first year.

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This year the annual show is scheduled to be held from November 7 to 9, 2013 at the Bombay Exhibition Centre, Mumbai, India. The event is being jointly organized by India’s leading aviation publication, Indian Aviation and The STAT Media Group which focus on the emerging MRO activities in India.

Gulperi Kurdoglu, CEO, SSSI (Spares Support Solutions India), who attended the show last year said, MRO India show, last year, has brought the entire aviation industry in India together for the first time to discuss our existing common problems with one voice. There were incredibly informative and productive sessions that everybody attending has felt that nobody is alone with those existing problems and we should approach each and every of these problems together as one voice.”

The sector was lacking a common platform to explore the hitherto untapped possibilities to

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achieve this goal. Hence, the birth of MRO India.

The third edition of the event is a step toward for achieving that goal in much better way. In fact, the event plays a duel role for the industry. It not only offers a unique setup to do hardcore one-toone business through meetings and exhibitions but also gives a podium to raise, discuss and debate upon some of the critical issues during the conferences.

Air Works India Engineering, one of the leading domestic MRO players, who has been attending the show for last two years, also acknowledges that there was a need of a common platform where all the key players could come and voice their concerns that would help the industry grow and be recognised as a sector that has immense potential.

“MRO India Show was a right platform as it brought the stakeholders, industry players, supporters and regulators etc under one roof and July-Aug 2013

EVENT PREVIEW

The much-awaited annual MRO show for civil and defence aviation that takes place during November 7 to 9, 2013, promises to be bigger and better this year

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debate on various issues related to the sector,” said a spokesperson from Air Works.

Though it is a good platform, RN Johri, CEO, Aman Aviation & Aerospace Solutions opined that all the issues raised at this platform cannot be addressed without having formal and informal meetings with the ministry/DGCA/Customs/ AAI to make them what we want to hear. “We will have to be more strategic in choosing the panel and the level of personnel on the panel.

Also, we have to be more careful in our planning the timing of the critical discussions. Last show, almost in all the sessions, when the core issues were discussed there were no senior decision making members of the DGCA/Ministry/ Customs/AAI etc,” he said.

The aviation industry of India is all geared up to explore the possibilities of growing MRO business in India, which is currently worth US$ 500 million and estimated to grow over US$ 1.5 billion by 2020. Despite the abundance of opportunities, Indian MRO sector is faced with a number of regulatory bottlenecks that is pulling down the industry.

“Essentially, lopsided fiscal policies of the Indian Government are the biggest hurdles for the sector. As you know the any MRO activities performed in India still attracts a VAT of 12.5 per cent on the sale price of the spares purchased by the Indian companies and Service Tax of 12.36 per cent of the labour charges. In addition, there are Octroi and Airport Royalties. The net effect is that the MRO industry is costlier than imports on account of local taxes by almost 30 per cent.

Imports of services are allowed totally duty free and do not attract Airport Royalties either,” said Malkani, adding that this effectively making the Indian MRO industry to bleed.

“Although the Government of India has allowed FDI through automatic route in MRO upto 100 per cent, there have been just one or two small investments in this sector since the last 20 years.

The reason is simple—it is much more profitable to source MRO work from foreign shores than from India. Until and unless the fiscal issues are not sorted out, there is no scope for growth in the MRO industry and we shall continue to export jobs and hard earned foreign exchange,” he added.

Johri said that Indian MRO companies are struggling for the volume of work. “All the available work which can be done within the country is moving out to other bigger MROs; and Indian MRO industry is left high and dry,” he said, adding that the regulations from customs and direct taxes need to be streamlined.

Kurdoglu agrees that Indian MRO industry needs prompt revision to the existing regulations to be able to be given equal chances against foreign competition. “Foreign MROs are treated July-Aug 2013

EVENT PREVIEW What the participants have to say:

Ravi S Menon, Executive Director, Air Works

“It was a great experience as MRO India Show served to be the right platform for the MRO players to discuss, debate, exhibit and showcase the world class products and services to the Indian aviation industry. We expect to have increased participation from operators, MRO players and regulatory authorities to enable us to exchange ideas and draft a meaningful set of recommended initiatives to be considered by the ministry for the growth of the MRO industry in India.”

“We need to strengthen this platform for achieving our aims and goals in future. I expect that this time the MRO India show must include many other members of the MRO community from all parts of country to be the moderator or panellist for various talks and discussions.”

RN Johri, CEO, Aman Aviation & Aerospace Solutions Pvt. Ltd

“I had an excellent experience at the MRO India Show last year.

The show is very important to bring about realization amongst the Indian bureaucracy about the requirement of a robust MRO industry in India. It does an impeccable job of bringing together the MRO companies to discuss issues and raise it on a common platform.”

“We strongly believe in MRO India Association’s and MRO India Show’s contribution to the development of our industry.

The progress on all the issues dealt has been significant in a very short time period.

We would like to continue discussing how we can further develop our industry in India.”

Gulperi Kurdoglu, CEO, SSSI (Spares Support Solutions India)

Bharat Malkani, Chairman, Max Aerospace & Aviation Pvt. Ltd

more favorably against Indian MROs in regards with current taxation and customs regulations.

Many airlines in India prefer to pay less taxes by sending their components / aircraft to foreign MROs,” she said, adding that aviation industry is going through hard times in the world, in general, and Indian MROs are putting great efforts to develop in such a difficult environment.

“It certainly deserves fair and equal treatment against foreign competition,” she added.

MRO India 2013 would provide an ideal platform for the players from the industry to discuss, debate, exhibit and showcase their world class products and services to the Indian aviation industry. The stake holders of the industry from INDIAN AVIATION

all over the world, including policy makers, regulators, manufacturers, users – civil and military, legal experts, consultants, IT experts, training organizations, MRO domain experts and senior Government officials would be taking part in the event.

MRO India 2013 has the active support from the Ministry of Civil Aviation, Govt. Of India, Maintenance Command of Indian Air Force, Industry Associations like MRO Association of India, Society of Indian Aerospace Technologies and Industries (SIATI) and the Aeronautical Society of India’s Mumbai Branch.

Besides the exhibition of various products and services that are currently available, the event

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would include Business Round Table sessions where the leaders of the industry would debate on the various issues related to the industry as a whole. The concurrent day-long sessions are dedicated to debate on the various needs for the MRO industry, both civil and defence, including the aspects related to its training. In addition, networking evening functions would also be organized including a “Gala Award Night” where, in accordance with the nominations by the readers of the Indian Aviation, the players as well as luminaries from the industry would be conferred with honours in recognition of their outstanding, dedicated and invaluable services to the industry.

July-Aug 2013

Organised By

Endorsed & Supported By

In Association With

MRO ASSOCIATION OF INDIA Ministry of Civil Aviation Goverment of India

Mumbai

Media Partners

2011

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July-Aug 2013

2012

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July-Aug 2013

DNA. It Matters.