May june 2013 by rajeshnatarajan

www.indianaviationnews.com - India’s only website for Civil and Military Aviation news XXVII

May-June 2013

07-09 November, 2013

EVENT PREVIEW Paris Airshow

SPECIAL FEATURE Naval Aviation 60 Years

INDIA CALLING MRO India 2013, the country’s only civil & defence MRO event you just can’t afford to miss

EDITORIAL www.indianaviationnews.com

Indian MRO business need an Industry Status

Founder Late ALKA SEN Publisher & Advertising Director HIRAK SEN Email-hirak@yahoo.com Editor-in-chief PULAK SEN Email-sen.pulak@gmail.com 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 Layout Artist RAJESH NATARAJAN Circulation & Business Manager SURESH DAPHAL Editorial & Admin. office 603, Palm Beach Apartment J. P. Road, Versova, Andheri (W), Mumbai 400 061 . India. Tel./Fax: (+91 22) 26365604 Email: info@indianaviationnews.com International Advertising Representatives Mike Elmes Aerospace Media Tel.: +44 0125 5871070 Fax: +44 0125 5871071 Email: mike.elmes@aerospacemedia.co.uk David Harrison Aerospace Media Tel: +44 01689 837447 M: +44 (0) 7768 892 869 Email: david@aerospacemedia.co.uk Registered office 603, Palm Beach Apartment J. P. Road, Versova, Andheri (W), Mumbai 400 061 . India. Printed and published by Hirak Sen for the proprietors, Indian Aviation News Service Private Limited.

ndia’s commercial airline fleet today is close to 400 aircraft and in the near future Indian airlines have been permitted to induct another 50 aircraft by the end of this fiscal year. A new airline, AirAsia India will also start operating services in the next few months. Maintenance, Repair and Overhaul (MRO) is a vital segment of the aviation industry, be it civil or military and India is no exception! MRO spending in India recorded at US$ 800 million for 2011 and expected to grow to over US$ 1.5 billion by 2020. This is a well-known statistics that is doing the round in the aviation world. However, there is lack of a Civil Aviation Policy of the Govt of India. Although www.indianaviationnews.com - India’s only website for Civil and Military Aviation news a draft policy is loaded on the Ministry of Civil Aviation’s website inviting comments and suggestions. This document has been up for the last six months for sure. It is a well-known fact that setting up an MRO is highly capital intensive with a long break-even time. Operating a credible MRO is highly dependent on investing in the right EVENT PREVIEW manpower which is regularly trained and optimally utilised SPECIAL FEATURE with a strong focus on quality and turnaround time. It also requires continuous investment in tooling, certification from safety regulators not only our own DGCA, but also EASA and FAA approvals to meet global standards of excellence and acceptance. Most of the Indian MROs have done so. In addition to this, MRO services in India have the advantages of lower labour costs of around US$ 30 to US$ 35 per manhour, compared to US$ 55 to US$ 60 in Southeast Asia and Middle East and even higher in the United States and Europe. In spite of all these investments, necessary certifications and cost arbitrage, MRO work of the airlines are going overseas. With regard to preferred destination for MRO services, 57 per cent of the airlines prefer to go to Europe, while 29 per cent prefer South East Asian markets for their MRO work and 14 per cent to the Middle East. The main reason for airline MRO work going overseas is that while signing of lease agreements, airlines do not impress upon the lessors to inspect the MRO capabilities in country. Added to this misery, Indian MRO faces other hurdles such as high taxes, high hangar rentals, airport operators charge them Gross Turnover Tax, high Custom Duties, etc. Although on some items when imported by Indian MROs there is no Custom Duties, the officers cannot interpret the rule and impose duties. Although the Ministry of Civil Aviation is proactive to the woes of the Indian MRO companies, it can do much more to make their business profitable by educating the Ministry of Finance and Revenue under which the Custom Department operates. If the Indian MRO business has to survive, the Government should accord this important segment of aviation an Industry Status. XXVII

May-June 2013

07-09 November, 2013

Paris Airshow

Naval Aviation 60 Years

INDIA CALLING MRO India 2013, the country’s only civil & defence MRO event you just can’t afford to miss

Cost of annual subscription: India: Rs. 2,000 Overseas: Europe € 300; USA $ 400; UK £ 250; Other Countries - US$ 400 Regd. No. 43862/86

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May-June 2013

CONTENTS

INDIAN NEWS

GLOBAL NEWS

08 COVER STORY

GUEST COLUMN

INTERVIEW

MRO India 2013—the country’s only civil & defence MRO event

EVENTS:

Paris Air Show 2013

PPP in airport development

SPECIAL FEATURE 60 Years of Naval Aviation INDIAN AVIATION

Syed Mohamed Beary, CMD, Bearys Group 01 02

May-June 2013

An EADS initiative to support Indian airlines fleet

Provides spare support services Ü ad hoc exchanges/leases Ü outright sale of spare parts, Ü Power- By-The-Hour support

programmes

Provides support to both Indian and overseas airline clients A really on-site and real-in-time spare support services in India

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INDIAN NEWS Government envisages US$12.1 billion investment in airport sector

overnment has envisaged an investment of US$ 12.1 billion in the airport sector during the 12th Plan period. Civil Aviation Minister, Ajit Singh, while launching the “India Aviation – 2014”, said that rapidly expanding air transport network and opening up of the infrastructure to private sector participation have fuelled the growth of air traffic in India. Rapidly expanding air transport network and opening up of the airport infrastructure to private sector participation have fuelled the growth of the air traffic in India. The Indian airport system is poised to handle 336 million domestic and 85 million international passengers by 2020, making India the third largest aviation market. “In order to stimulate air connectivity, airlines are expected to add around 370 aircraft, worth US$27.5 billion, to their fleet by the year 2017. Moreover, it is estimated that commercial fleet size is expected to reach 1000 from 400 today by 2020, and one thousand General aviation aircraft by 2020 including fleet renewal. Estimated investment requirement for the General aviation aircraft alone is of the order of US$4 billion,” Singh said. Indian government has envisaged investment of US$12.1 billion in the airports sector during the 12th Plan period, of which US$9.3 billion is expected to come from the private sector for construction of new airports, expansion, modernization of existing airports and development of low cost airports to keep the tariff at its minimal at smaller airports,

INDIAN AVIATION

improvement in connecting infrastructure, development of world class Air Navigation Services infrastructure. At the same time, in order to develop world class ground handling, cargo, logistic facilities including high-output distribution centers at major airports, huge investment is also anticipated. To facilitate the growth of MRO Business and to make it competitive, the Government has announced several concessions in the Union Budget for 2013-14 including extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircrafts also and inclusion of foreign airlines for the purpose of duty-free imports of parts, etc as applicable for scheduled air transport services. These concessions have been widely welcomed by the industry. “Another important move that has accelerated the modernization and development process is the privatization of five major airports under PPP mode and the policy of development of Greenfield airports which envisages synergy between the public and private sector,” he said. “Let me conclude by saying that our aviation scenario is fast changing and poised for breaking boundaries and scaling new heights. With everincreasing scope for participation by private sector, we expect significant developments in the years ahead. I invite you all to participate in India Aviation 2014 at Hyderabad and contribute in the enhancement of air connectivity in the region,” he added.

Government appoints experts on Air India Board The Government has appointed five industry experts as part-time directors on the board of Air India to achieve the turn-around and financial restructuring of the airline. Civil Aviation Minister Ajit Singh has taken the initiative to appoint Gurucharan Das; Dr. Prem Vrat; Air Marshal (Retd.) KK Nohwar, PVSM VM; Dr. Ravindra Dholakia and Renuka Ramnath. These persons not only have expertise in their specific fields, but also have served in various reputed organisations at highest levels. Gurucharan Das is a Graduate with Hon. from Harvard University in Philosophy and has worked as CEO of Procter & Gamble India, besides holding high posts in other organisation. Dr. Prem Vrat is M.Tech. and Ph.D. and is presently working as Vice Chancellor and Professor of eminence, ITM University Gurgaon. Air Marshal (Retd.) KK Nohwar, PVSM VM, is a military aviator with more than 40 years of experience in the field of aviation. Dr. Dholakia is Ph.D. in Economics and M.A. with distinction, Gold Medalist in Economics and Eco-Metrics. He is Professor in Economics and Public System of IIM, Ahmedabad. Renuka Ramnath holds a Bachelor Degree of Engineering and MBA with AMP from Harvard Business School.

Work commences on Six Greenfield airports The Minister of State for Civil Aviation KC Venugopal informed the Parliament that construction at various airports including Aranmula airport project has not stopped. The Government has granted ‘in principle’ approval for setting up of 15 Greenfield airports across the country out of which, physical work at six airports namely, Gulbarga, Hassan, Shimoga in Karnataka, Durgapur in West Bengal, Pakyong in Sikkim and Shirdi in Maharashtra, has already commenced. “Necessary action for project development, including acquisition of land, financing of the airport project etc is taken by the respective airport promoter. The timeline for construction of airport projects depends upon many factors such as land acquisition, availability of mandatory clearances, financial closure, etc by the individual operator,” he said. In regard to setting up of Greenfield airport at Aranmula in Kerala, he added, the airport developer, KGS Aranmula International Airport has informed that the work will commence after obtaining the final clearance from Ministry of Environment & Forest. May-June 2013

INDIAN NEWS Air India to implement Dholakia Committee recommendations The Minister for Civil Aviation Ajit Singh has said that the Government has accepted the recommendations of Prof. Dholakia Committee report on cost cutting in Air India and sent to Air India for immediate implementation. The Committee has made total 47 recommendations. Air India expects a saving of about Rs500 crore in next six months by implementing some of the recommendations of the Committee. Air India has constituted a Committee comprising Nasir Ali, Joint Managing Director, AI; Deepak Brara, Commercial Director, AI and S Venkat, Director Finance to implement the recommendation of Cost Cutting Committee in a time-bound manner. The main recommendation which Air India is going to implement is to evolve a model based on an ideal mix of best practices of LCC model while retaining the core features of full service carrier. The main recommendations are: charging for food; unbundling of services; zero per cent commission and ticket booking through website; shift from full MRO to preventive maintenance and power by the hour concept; strict enforcement of baggage charges; dynamic pricing; and restructuring or withdrawing flights not meeting variable costs. It also has recommended that idle aircraft need to be used on most profitable sectors or surrendered; and underutilized assets like luxury lounges, time slots at busy International airports, land, buildings, floors, hangar space and hotels to be leased out or sold. The airline will also relocate surplus crew as per crew pattern requirements and SOD movement curtailed besides stopping temporary posting of employees. It also recommended stopping excessive and unjustified allowances given to pilots and crew. It also says that extra reimbursements should be merged with allowances within limit of 50 per cent of revised basic as per DPE guidelines; and training should be provided to those with more than three years of service left before retirement. INDIAN AVIATION

Farewell Air Marshal Wollen Air Marshal Malcom Shirley Dundas Wollen PVSM, VSM passed away on May 23, 2013 at the age of 85 in Bangalore. Born in an Anglo-Indian family, he was commissioned into the Indian Air Force on Sep 3, 1949 and rose to the highest rank. Besides being bestowed with Param Vishisht Seva for his heroic task during the 1971 Indo-Pak war, AM Wollen was awarded the Sword of Honour, the Flying Trophy and the President’s Plaque as a young pass out before receiving Vayu Sena Medal 1968. AM Wollen, who served two terms as the Chairman of Hindustan

Air India to get 8 more Boeing 787 by December

Aeronautics Ltd. between 1984 and 1988, undertook the design and development of the Advanced Light Helicopter and Light Combat Aircraft (LCA) during his tenure. Post retirement from HAL, AM Wollen joined Indian Aviation as an adviser and later as its Principal Adviser. He regularly wrote on various aviation topics and would visit global air shows to stay abreast of latest developments in aviation. We salute Air Marshal Wollen. The Indian aviation industry has lost a true aviator.

The Minister for Civil Aviation Ajit Singh has said that out of six Dreamliners, two have already been modified for commercial operations and all six aircraft will be ready for operation by the end of May. While addressing the media persons at a press conference, he said Air India would get another eight Dreamliners by December this year. This will make the total availability of fourteen Boeing 787s with Air India by December, 2013. The Minister said that the first commercial flight will restart from May 15th, 2013, for which all operational regulatory requirements

Delhi-Sydney/Melbourne-Delhi (August, 2013); Delhi-Rome/Milan-Delhi (October, 2013); and Delhi-Moscow-Delhi (early 2014). On the performance of Air India during financial year 2012-13, the Minister said the total revenue has increased by about 9.6 per cent from Rs14,714 crore in 2011-12 to Rs16,130 crore in 2012-13. Air India carried 14.05 million passengers in the year 2012-13 as against 13.40 million passengers in previous financial year, which shows a growth of about 5 per cent. The net loss of Air India for the financial year 2012-13 has come down by about Rs2,261 crore (Net loss in 2011-12 – Rs7,559.74 crore in 2012-13 – Rs5,198.55 crore). The EBITDA has improved by Rs2,256 crore over

have been complied with and all pilots have been subjected to the required checks before release for flight duties. The first international flight is proposed to restart from May 22nd, 2013. Air India proposes to start the following new international routes with these Boeing 787 aircraft: Delhi-Birmingham-Delhi (August, 2013);

previous year and it stands at Rs19.45 crore during the financial year 2012-13 [EBITDA in 2011-12 (-) Rs2,236.95]. Passenger Loan Factor (PLF) has shown a great upward trend. For the whole network operation, the PLF stood 72.7 per cent during 2012-13 compared to 68 per cent during financial year 2011-12.

May-June 2013

INDIAN NEWS Government to promote development of aviation hubs

Air Works enters into a spare parts agreement with Gulfstream

Antony inaugurates new air force station at Thanjavur

The Minister for Civil Aviation Ajit Singh informed that the Government has approved the proposal of Ministry of Civil Aviation to constitute an Inter-Ministerial Committee under the Chairmanship of Secretary, Civil Aviation for suggesting various measures to overcome the bottlenecks in the development of aviation hubs at various airports In India. The six metros with state-of-the-art airports that have been modernized and expanded include Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata. The following bottlenecks have been identified and need rectification.

Air Works India Engineering, one of the leading third party MROs, announced signing an exclusive spare parts consignment agreement with Gulfstream Aerospace Corp. Under the agreement, Air Works will arrange for parts warehousing, custom clearance and delivery to customers while Gulfstream will position frequently needed aircraft replacement parts at Air Works’ warehouse in Bengaluru, India.

The Defence Minister AK Antony recently dedicated to the nation the New Air Force Station at Thanjavur at a brief function held to mark the occasion. Speaking to reporters, Antony said the operationalisation of the Air Force Station, Thanjavur would strengthen the air defence capabilities of the Indian Air Force in general and the Southern Command, in particular. He said various sensitive, strategic, industrial, aerospace and economic assets are coming up in the Southern Peninsula and the Station will play a vital role in providing protection to those assets.

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Gulfstream began stocking parts at Air Works’ warehouse adjacent to Bengaluru International Airport in April. The approximate parts value is expected to reach US$15 million by the end of 2013. “By having inventory in India, we can expedite delivery of parts to domestic and in-transit customers, quite possibly saving hours or even days,” said Derek Zimmerman, Vice President, Product Support Materials, Gulfstream. “This expediency can lower costs for operators and significantly reduce aircraft downtime, particularly during aircraft-on-ground situations,” he added. The inventory at Air Works includes rotable and consumable parts for all in-production Gulfstream business jets along with out-of-production models such as the GV, GIV and G200. “We are delighted with the signing of this agreement with Gulfstream,” said Ravi Menon, Executive Director, Air Works. “We have had a longstanding relationship with Gulfstream as their authorized warranty facility in India, and the positioning of consignment stock at our forward stocking location in Bengaluru translates into a tremendous value addition to Gulfstream aircraft owners and operators,” he added. Gulfstream operators also have access to more than US$56 million in parts and materials inventory positioned at three sites in Asia – Beijing, Hong Kong and Singapore. Working closely with Air Works personnel is Gulfstream’s Aniruddh Srivastava, regional director, Service Parts Distribution for India. The Gulfstream fleet in India has grown from five aircraft in 2001 to more than 20 today. Air Works’ Mumbai facility is an authorized warranty center for Gulfstream. Its technicians are authorized by the country’s Directorate General of Civil Aviation to work on the G550, G500, GV, GIV, GIV-SP, G200 and G100 models. Another support resource for Gulfstream customers in India is field service representative Kannan Kumar, who is based in Chennai.

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Need to coordinate the development of tourism and promotion of brand ‘India’ in a concerted manner. Visa norms need to be liberalized and ‘visa on arrival’ needs to be extended to as many countries as possible. Present instructions issued by Government of India impose conditions on Indian passport holders as well as the foreign nationals with regard to carrying / spending Indian currency. Exchange of their left over Indian currency into foreign currency in the security hold area respectively which acts as an impediment in development of hubs. ATF price and taxation also pose a road block for development of aviation hubs. Service charge on air travel needs to be withdrawn in order to make air travel more attractive to passengers and thus improve prospects for the airline industry. Rules and legislations dealing with trans- shipment cargo also needs to be streamlined to facilitate growth in trans shipment cargo. Encourage MRO business. Issues regarding confluence flights relating to immigration, security check.

In the last decade, India has witnessed a traffic growth rate of about 15 to 18 per cent, which is likely to continue in future also. Development of these airports as aviation hubs would boost the growth of airlines, airports and would increase the flow of tourists to India. After the inter-ministerial group submits its recommendations, the Government expects to implement them within the shortest possible time, after seeking approval at an appropriate level. INDIAN AVIATION

The event was attended among others by the COSC and the Chief of Air Staff Air Chief Marshal NAK Browne and the AOC-in-C Southern Air Command Air Marshal RK Jolly. Antony said the Station will also help protect our island territories and Sea Lines of Communication in the Indian Ocean Region (IOR). He said even though India is a peace-loving nation, it has to protect its national interests from threats such as piracy and terrorism. He said the IOR is increasingly becoming more and more active. In the emerging security scenario, the presence of fighter aircraft in Thanjavur will not only guard India’s interests but also give a feeling of safety to neighbours, he said. Thanjavur airbase is poised to become a premier airbase in Southern Air Command. The status of the airbase as the pride of Southern Air Command befits the city of Thanjavur, which was a jewel in the crown of the Chola and Pandya Kingdoms. By the mid-eighties, a need was felt to build up the country’s air power capabilities in the Southern peninsula to provide air defence protection to the high value national assets as well as the island territories. In addition, there was a growing need felt to protect maritime trade and the large EEZ in the coming years. The Government, therefore, decided to create Southern Air Command at Trivandrum in 1984 and also gave approval for the formation of 47 Wing at Thanjavur. The IAF took over the airfield in March 1990. The air base is now ready to undertake fighter, transport and helicopter operations and detachments of these aircraft will be planned every year. May-June 2013

INDIAN NEWS India receives first naval P-8I LRMRASW Aircraft at INS Rajali Indian Naval Aviation received a major fillip with the arrival of the first of eight Boeing P-8I Long Range Maritime Reconnaissance and Anti Submarine Warfare (LRMRASW) aircraft at Naval Air Station Rajali (Arakkonam) on May 15, 2013. The remaining seven aircraft would be delivered over the next two years.

The P-8I aircraft, based on the Boeing 737800(NG) airframe, is the Indian Naval variant of the P-8A Poseidon that Boeing has developed for the US Navy. The aircraft is equipped with foreign and 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 Anti Submarine weapons. These LRMRASW aircraft have been procured under the contract signed in 2009. The Indian Navy is in process of procuring an additional four P-8I aircraft under the option clause. The P-8I aircraft would greatly enhance India`s maritime surveillance capability in the Indian Ocean Region. Vice Admiral Bimal Kumar Verma, Chief of Staff (Eastern Naval Command) received the aircraft in a function organized at INS Rajali.

IAF inducts basic trainer aircraft Pilatus PC 7 MKII IAF formally inducted Pilatus PC 7 Mk II trainer aircraft into the service at Dundigal, Hyderabad on May 31, 2013. Three PC-7 MK II aircraft got airborne in a vic formation led by Group Captain RS Nandedkar to put up a brief display for the audience. This marked the first formal flight of the Basic Trainer Aircraft over the skies at the Air Force Academy in Hyderabad. This was followed by handing over of technical documents of the aircraft by Air Commodore Nagesh Kapoor, Chief Instructor (Flying) to Jitendra Singh, Minister of State for Defence. After unveiling the new Basic Trainer aircraft, INDIAN AVIATION

Jitendra Singh said, “The induction of PC-7Mk II as Basic Trainer Aircraft in Indian Air Force is a very important landmark in our nation’s quest to modernise its Armed Forces.

As part of the ongoing transformation, IAF is being equipped with cutting edge technology and state of the art aircraft and systems. However, the need to train our ab-initio pilots on modern trainers is crucial to prepare them for the exacting requirements of combat flying,” he added. With unveiling of Basic Training Aircraft (BTA), India ushers in a new era. “Imparting high quality flying training to our budding pilots will ensure proficient handling of more sophisticated aircraft in their demanding roles,” he said. PC-7 MK-II and its associated training infrastructure comprising of simulators and training modules promises higher safety standards while developing the critical skills in military aviation. The aircraft, with its excellent handling characteristics, user friendly onboard instrumentation and modern navigation systems, is ideally suited for IAF’s training requirements. On behalf of the Government, the minister assured the nation that no effort will be spared to equip IAF with the latest training aids and infrastructure. “Funds will never be an impediment and today’s induction is one such instance to prove this,” he added. Noting the induction of PC7 MK II as IAF’s Basic Trainer Aircraft to be a proud moment, the Air Chief NAK Brown said, “This event is a significant milestone in IAF’s transformation into a modern multi-spectrum strategic force. It is my responsibility to ensure that our pilots and technicians operate the best trainer in the world, the nation can afford.” He further added that the Pilatus will prove to be the ideal platform that will train the ab-initio trainees about the nuances of basic flying and expose them to modern avionics and nav aids. “This trainer will provide a solid foundation and facilitate a seamless transition

from ab-initio stage through intermediate and advanced stages into full-fledged operational flying for all streams,” he added. The PC-7 MK II aircraft would be used for Basic Training of all pilots of the Indian Air Force, in addition to the pilots of the Indian Navy and the Coast Guard. Till now this role was performed by the reliable but ageing workhorse, the HJT-16 Kiran aircraft. Ready to receive the new Basic Trainer that will bring in a much awaited augumentation of IAF’s training capacity, a comprehensive infrastructure upgrade is already underway at the Air Force Academy. A total of 75 aircraft have been contracted from Pilatus, Switzerland. The procurement of PC 7 MkII was approved by the government in May 2012 and the first batch of PC-7 Mk II arrived at the Academy in February this year as a part of accelerated induction plan. The first batch of Flight Cadets would start their training on PC-7 MK II from July onwards.

RK Mathur takes over as the new defence secretary RK Mathur recently took over as the new Defence Secretary. He belongs to the 1977 Batch of the Indian Administrative Service of ManipurTripura Cadre. He did his B.Tech from IIT Kanpur, M. Tech from IIT Delhi and MBA from International Centre for Public Enterprises, Ljubljana. Mathur has a rich and varied experience in the field of public administration and has held many important positions in the Government of Tripura. He has served as Principal Secretary in the Agriculture, Rural Development and Finance Departments of the Government of Tripura. He has also held the position of Chief Secretary of Tripura. During his different stints at the Centre, Mathur has served as Development Commissioner (Handicrafts) & Joint Secretary in the Ministry of Textile and as Additional Secretary and Special Secretary in the Department of Defence, Ministry of Defence. He has held Secretary level postings in the Ministry of Micro, Small and Medium Enterprises and Department of Defence Production, Ministry of Defence. May-June 2013

GLOBAL NEWS Qatar Airways launches second destination in Oman

Eurocopter to supply EC225 helicopters China’s SGGAC

Qatar Airways has commenced services to Salalah, joining Muscat as the airline’s second destination in the Sultanate of Oman. Salalah, south of the Arabian Peninsula, becomes the Doha-based airline’s fifth new route of the year taking the carrier’s global reach to 127 destinations. With the Omani capital Muscat already served 31-times-a-week and the new four-a-week services to Salalah, Qatar Airways now flies a total of 35 services to the Sultanate each week. The latest destination also heralds the first of three new Middle East routes to be launched by the carrier over the next few weeks with two Iraqi cities joining the network. Qatar Airways Chief Executive Officer Akbar Al Baker said the launch of Salalah flights demonstrated the strengthening relationship between the State of Qatar and the Sultanate. “We are extremely delighted to have added the highly popular leisure destination of Salalah to our international network and extend our awardwinning service to the people of Salalah and the Dhofar region,” he said.

hina’s largest helicopter operator in the power and electricity sectors, the State Grid General Aviation Company (SGGAC), has ordered one EC225 and two AS350 B3 rotorcraft to support the country’s electrical grid development and build the Chinese company’s business into other airlift duties. As the wholly-owned subsidiary of State Grid Corporation of China, one of the world’s largest electricity providers, SGGAC is now expanding its helicopter business scope into aerial survey, emergency rescue, passenger and freight transportation, infrastructure construction and scientific experimentation. “The new acquisitions will undoubtedly augment SGGAC’s capabilities in servicing State Grid Corporation’s coverage of the country’s electrical and power lines,” said Norbert Ducrot, Eurocopter Senior Vice President for Asia-Pacific. “Eurocopter is ready to continue our partnership in assisting SGGAC’s implementation of its ambitious expansion strategy throughout China.” The latest agreement expands a multi-year relationship during which Eurocopter has become one of SGGAC’s most important aircraft and services provider. Eurocopter provided an AS350 B3 that assisted in completing the Qinghai-Tibet AC-DC Interconnection Project plateau line, with the rotorcraft setting a 5,350-meter altitude record for helicopter-based power line support operations. SGGAC also has been operating two AS350 B3e units since last year for power line activities. The additional order of this helicopter type underlines SGGAC’s trust in the aircraft’s exceptional highaltitude performance, which is an important criterion for power line activities in China’s landscape. Eurocopter will deliver the newly-ordered AS350 B3e helicopters to SGGAC late this year for deployment in power line survey missions and in transportation duties. The rotorcraft are to incorporate an air conditioning system and will be outfitted with an electrical hoist capable of carrying 200-kg. loads. The EC225 is to be received by SGGAC in 2015 for multi-role missions, including utility and emergency rescue. “With SGGAC growing its helicopter fleet and capabilities, we look forward to expanding on the mutual trust and our win-win partnership with Eurocopter – thereby preparing the future of China’s general aviation together,” stated SGGAC General Manager Zou Ben Guo. Eurocopter holds an important share of the evolving Chinese helicopter market segment, backed by the company’s established in-country support and marketing resources. INDIAN AVIATION

“As one of the most beautiful places in the Gulf, affectionately known as the Perfume Capital of Arabia, Salalah has tremendous appeal for visitors across the Gulf, Europe, the United States and many other countries, steeped in history, culture and natural beauty. Already welcoming thousands of tourists every year, we look forward to playing our part to help further boost leisure and business tourism here and also provide travellers from Salalah with easy connections to more than 120 destinations worldwide via our Doha hub,” he said. Qatar Airways Senior Vice President of GCC, Levant, Iran, Iraq & Indian Sub-Continent, Fathi Al Shehab hosted a gathering of distinguished guests and local media at Salalah Airport ahead of the airline’s first departure flight to Doha. Chief Guest at the event representing the government of Oman was the deputy governor of Dhofar, His Excellency Sheikh Abdullah Bin Saif Al Mahrooqi. May-June 2013

GLOBAL NEWS Sabre and Expedia grow technology partnership Travel technology company, Sabre and Expedia have expanded their global technology partnership into Asia. Expedia’s online business in Singapore and Malaysia are now powered by Sabre’s technology, providing online shoppers with some of the broadest and most competitively-priced travel options in the region, the company said. The expanded agreement sees Expedia tap into a wide range of technology services from Sabre, including its online fare search technology and access to global travel supplier content from both Sabre and Abacus, the global distribution provider (GDS) in Asia, partly owned by Sabre. The unique combination of technology would help Expedia meet its promise to provide the best travel experience to consumers. Greg Schulze, SVP Global Tour & Transport, Expedia, said, “Sabre is a long-standing global

partner who has played an important role in helping us grow our scale around the world. Our partnership in Asia is driven by a mutual desire to provide consumers exactly what they want – access to well-priced travel options, accessible anywhere and everywhere.” Greg Webb, President of Sabre Travel Network said, “We have large teams around the world whose only job is to obsess over our low fare search algorithms. And they work with partners like Expedia to continuously bring all this technology to the marketplace so consumers always get the best search results. Agencies in Asia tend to be early adopters of technology so it’s perfect for Sabre, Abacus and Expedia to work together to bring emerging technologies to willing travellers.” Sabre and Expedia established their partnership in 2005 in North America, and have since expanded into Latin America and now Asia.

together with rapid en-route times and highly cost-efficient operations.” He added that a corporate aircraft ensures access to cities which are underserved or not serviced at all by scheduled direct commercial flights, and opens small airports that are convenient and closer to the final destination. Additionally, such travel allows the company to set its own schedules while reducing airport processing and formalities.

JSC UTair selects AJW Aviation for power-by-the-hour support AJW Aviation has been selected by Russian airline JSC UTair Aviation to provide powerby-the-hour support for its fleet of thirty-seven Boeing 737-500 and Boeing 737-400 aircraft. The PBH contract, supported by ATA Chapter, also includes a large home base stock purchase, which will bring the combined fleet that AJW has under PBH or pooling contract to over 400 aircraft globally. AJW will support the airline from its network of strategic hubs across Europe and the rest of the world, which comprise service ready Boeing and Airbus component inventories valued at almost US$500m.

JSC UTair Aviation, based at Roschino International Airport in Tyumen Oblast, in Siberia, is a first-class competitive airline, with passenger and cargo operations on domestic and international routes serviced by a range of modern rotary and fixed wing aircraft. The company also has extensive charter flights and helicopters in support of the oil and gas industry across Western Siberia. “AJW is delighted to have signed this new PBH agreement with JSC UTair Aviation,” said, Christopher Whiteside, President of AJW Aviation. “We have worked extensively with our customer base accross Eastern Europe, Central Asia and the CIS regions to understand their operational needs and our support hubs are strategically located to minimise AOG situations. Our experienced and dedicated teams accross the region are backed up by native speakers in our UK global headquarters. The airline‘s significant fleet can be assured of our award-winning service 24/7,” he added.

Abalone becomes the first corporate operator of TBM 850 The Abalone Group has acquired a TBM 850 Elite Model 2013 – DAHER-SOCATA’s latest very fast turboprop aircraft – which will be operated for long-distance trips with company executives and managers. The sale’s announcement was made at the European Business Aviation Convention & Exhibition (EBACE). “We have been working INDIAN AVIATION

on this project for the past year in conjunction with our business development plan, with the full understanding that while regular trips are needed, they are time-consuming and create stress and fatigue,” said Sacha Moutel, Project Manager at the Abalone Group. “The TBM 850 Elite will help us increase our productivity, bringing the best in private aircraft travel

“We are proud that a dynamic company such as the Abalone Group has selected our TBM 850 Elite for its corporate transportation needs,” said Nicolas Chabbert, the Senior Vice President of DAHER-SOCATA’s Airplane Division. “This aircraft will provide projection capability to Abalone executives throughout Europe, contributing to the company’s growth.”

Embraer and SkyWest sign a contract for 40 firm E-Jets Embraer and SkyWest announced a firm order for 40 Embraer 175 aircraft. SkyWest will operate the aircraft under a Capacity Purchase Agreement (CPA) with United Airlines. Another 60 firm orders are reconfirmable aircraft, which are subject to SkyWest being awarded CPA agreement contracts with major US airline partners. In addition to that, the agreement includes options for another 100 E175s, taking the total order potential up to 200 aircraft. The firm orders for the first 40 aircraft will be included in Embraer’s 2013 second quarter backlog. This sale is in addition to the contract signed by Embraer with United Airlines for 30 firm and 40 options for E175 jets. If all 100 firm orders are exercised, the order has an estimated value of US4.1 billion at current list prices, representing one of the most significant orders in each company’s histories. SkyWest plans to configure the E175s in a dual-class 76seat layout, with the delivery of the first aircraft scheduled for the second quarter of 2014. May-June 2013

GLOBAL NEWS “This is truly a milestone order for Embraer. As our largest Brasilia and ERJ operator, SkyWest has now selected the enhanced E-Jet for their fleet, validating their confidence in Embraer and recognizing the tremendous capabilities of the E175 as the best aircraft in its class,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation. “I’m confident the technologically advanced E175 will become the company’s flagship, bringing greater efficiency to their operations and a higher standard of comfort to their customers,” he added. SkyWest, based in the US State of Utah, is the largest regional airline group in the world and is the parent company of SkyWest Airlines and ExpressJet Airlines. Both airlines have long histories with Embraer and were early customers for the Embraer EMB 120 Brasilia turboprop aircraft. Over 40 EMB 120 Brasilias continue to fly in the SkyWest Airlines network, primarily in the western United States. ExpressJet Airlines operates 249 aircraft of the ERJ 145 family and is the largest ERJ operator in the world. Jerry Atkin, Chairman and CEO of SkyWest, said, “We have enjoyed our partnership with Embraer since the 1980s, and now it is extremely rewarding to be placing this significant order for E175s. We are confident the E-Jet will serve our partners and passengers well, with greater cabin comfort and with the best economics in its class.”

Exclases Russia signs contract for five AW139 helicopters HeliVert, a Russian Helicopters and AgustaWestland joint venture, and Exclases Russia announced the signing of a contract between the JV and Exclases Russia for the supply of five AW139 helicopters which will be assembled at the HeliVert plant in Tomilino near Moscow. This contract, which includes a mix of five VIP and utility-configured helicopters, follows the first contract signed between HeliVert and Exclases Russia for Russian-built AW139 helicopters which includes an AW139 that is scheduled to be delivered in June. This purchase further expands the presence of the AW139 model in Russia where over 20 have been ordered so far and almost 50 across the CIS countries. This medium multi-role helicopter is superior to all other twin-engine helicopters in its class in terms of speed, flight characteristics and passenger cabin size. Combining a streamlined fuselage, latest avionic equipment, spacious cabin and low acoustic signature, the AW139 sets a new standard in the market, the company said. The AW139 has a maximum cruise speed of 306 km/h, maximum range in excess of 927 km, maximum flight time of five hours and INDIAN AVIATION

our part, we will bring our experience of working with end-users and 50 years of research-based expertise into the applications of civil aviation.”

CAAS launches new initiatives at Changi airport

outstanding performance. It is the only helicopter in its weight class that can be equipped with a Full Ice Protection System (FIPS), which makes it possible to fly into known icing conditions. The AW139 is powered by two Pratt & Whitney Canada PT6C-67C turboshaft engines, equipped with full-authority digital engine controls (FADEC) and each rated at 1,679 SHP for take-off. The maximum take-off weight is 6400 kg with an option of 6800 kg. The helicopter is configured for one or two pilots and can carry up to 15 passengers or 6-8 passengers in VIP/ corporate transport configuration.

Russian Helicopters signs agreement with PANH Helicopters Russian Helicopters has signed a partnership memorandum with PANH Helicopters, a Russian helicopter operator. Inked at the HeliRussia 2013 trade show in Moscow, the agreement covers cooperation on stress-testing of new and modified Russian-built helicopters under production conditions, research into customers’ requirements regarding the external appearance and technical and economic capabilities of commercial helicopters and how they are used in Russia and other countries. The companies also plan to carry out a joint assessment of the technical specifications and competiveness of current and future civilian helicopters, and to determine priorities for upgrading Russian civilian helicopters to meet market requirements. Other projects under the agreement include the creation, production and deployment of training simulators for new Russian-built helicopters. “This agreement with PANH is an important step in Russian Helicopters’ efforts to work with helicopter operators at the development stage as well as when helicopters are already operational,” Russian Helicopters CEO Dmitry Petrov said. “By doing this we can meet our customers’ individual requirements better and therefore create more competitive helicopters with a personal focus on each client,” he added. PANH Helicopters CEO Andrei Kozlovsky said: “Our company greatly values Russian Helicopters’ customer-oriented approach. For

With the continued strong growth of air traffic and planned investments in new infrastructure at Changi Airport, key airport processes will need to be transformed to raise labour productivity and operational efficiency at the airport. CAAS has therefore launched two new initiatives – Passenger Self-Service Adoption Programme and Aviation Problem-Based Challenge – under the S$100 million Aviation Development Fund 1 (ADF). In collaboration with the Changi Airport Group (CAG) and the airport community, CAAS aims to encourage airlines to participate in providing self-service check-in and bag-drop services for passengers departing from Changi Airport. The airport community stands to benefit from the automation of these processes through improved labour productivity and the reallocation of manpower to deal with more complex service requests. Through the self-service services, passengers can perform the check-in function online, via mobile applications or at mobile kiosks at the airport, as well as print boarding passes and baggage tags at the kiosks, without the need for assistance by passenger service agents at check-in counters. CAG has announced that it will cover the cost of installing the mobile kiosks at Changi Airport. CAAS has allocated a budget of S$2 million from June 1, 2013 to 31 March 2015 to incentivise airlines to move to self-service check-in and bag-drop under the PSAP. The funding will go towards defraying some of the costs that airlines will incur in implementing the self-service, such as the development of software and related consultancy services, purchase or lease of related equipment, and development of online and mobile check-in applications. Mr Ho Yuen Sang, Managing Director, Tiger Airways, said, “The PSAP is a step forward in making pre-flight procedures more convenient and seamless for passengers departing Changi Airport. PSAP will help Tiger Airways increase our operational efficiencies, and enable us to channel our resources towards other ground operations to better serve our customers.” CAAS has also launched the APC to challenge the industry and relevant stakeholders to develop innovative solutions for the longterm development and sustainability of the industry. The APC will be a competition-based programme that will tap on the collective knowledge and expertise of the industry and academia to find means and ways to address identified problem statements. May-June 2013

EVENT PREVIEW

Paris Air Show

Ready to fly high

espite the current uncertain global economic climate, companies from around the world have put their hands up to register massively for the next Paris Air Show at Le Bourget. Most of the large companies will be present, taking their place among the showâ&#x20AC;&#x2122;s 2,100 exhibitors. INDIAN AVIATION

After the successful show in 2011 which welcomed record-breaking numbers of exhibitors, the upcoming International Paris Air Show on June 17-23, 2013 will mark the showâ&#x20AC;&#x2122;s 50th edition and promises to be full of new innovations. 11

May-June 2013

EVENT PREVIEW He informed that some €50 million have been invested in infrastructure at the Le Bourget Exhibition Centre and €4 million in renovating the 350 business chalets. “A certain number of improvements have also been made, including a mobile application with some world-first features (indoor & outdoor geo-location, flight schedules in real time, etc.) and an FM radio station informing people about traffic conditions around the show,” he added. The Paris Air Show brings together some 2,110 exhibitors, 351,000 trade and general public visitors, 290 international delegations and 3,200 journalists. It remains the largest aerospace industry event in the world and is the preferred show for exhibitors thanks to the quality of its participants. The previous Paris Air Show in 2011 saw some 2,113 exhibitors from 45 countries, some 151,000 visitors on the trade days and some 204,000 public visitors. In addition, the 2011 show boasted some 150 aircraft in the static and flying display, hosting some 3,200 journalists from every corner of the globe and saw 1,400 aircraft sold – with some £102.5 billion worth of deals announced at the show. In 2013, the organisers GIFAS hope to go one better. This year, it has two objectives – giving

Key figures (2011 show): ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶

2,113 international exhibitors 151,000 trade visitors 204,000 general public visitors 130,000m² of exhibition area sold 192,000m² of exhibition space for aircraft Over 150 aircraft performing flying displays and exhibited 290 official delegations from some 100 countries ▶▶ 3,200 journalists from all over the world

more business and services to exhibitors and improving the air show experience for visitors. Some 130 aircraft in static and flying are set to appear, and there is a record-breaking number of exhibitors coming – some 2,160 companies from 44 countries – with almost all the top 100 aerospace companies represented. For trade exhibitors, the organisers promise a new focus on SMEs and the supply chain – along with a B2B meetings programme – building on the success of this activity in 2011. The show will also open longer, new opening hours (from 6.30 am exhibitors/8.30am visitors) allowing more time to see everything this giant trade exhibition has to offer.

Commercial aviation Airbus would have loved to take the wind away from Boeing’s resurgent 787 Dreamliner by launching A350XWB, which is preparing to take make its fight this year. But the show organisers and Airbus itself have ruled it out from appearing at the show, either on static or during the flying display. However, the potential sight of the A380 in a British Airways livery is sure to please UK show-goers. BA is due to take delivery of its first Rolls-Royce Trent 900-powered aircraft in July, a month after the Paris show. Another brand-new civil airliner to just miss the party will be Bombardier’s new CSeries airliner, which the Canadian air-framer is set to fly for the first time at the end of June. But Boeing will be arriving at the show in much better shape than recent years, now that it’s restarting deliveries of 787s after grounding, and is about to start assembly of a larger variant called the 787-9. Boeing could also could launch the 787-10, the largest version of the model, or the 777-9, the upgraded model of its largest twin-engine, at the Paris show.

The show’s more than 2,000 spaces were already sold out in January, and organizers said all of the major players in defence will be taking booths, except for US-based Northrop Grumman. Northrop also skipped last year’s Farnborough International Airshow, citing cost concerns. “The show’s organisation has followed an approach focusing on quality and innovation. This approach has been in place for several years in order to ensure that exhibitors, visitors and the press experience an effective and enjoyable show,” said Emeric D’Arcimoles – Chairman & CEO of the show. INDIAN AVIATION

May-June 2013

EVENT PREVIEW

The threat from the A350 is extremely important for Boeing, because the two smaller A350s will compete directly against the 787s, while the largest (so far) A350-1000 already is competing, at least in terms of sales, against Boeing’s current 777. The show might see Qatar Airways announcing an order of up to 15 Airbus A330 aircraft, as a result of delays to the delivery of its Boeing 787 Dreamliners. The Doha-based carrier is looking at ordering 10 to 15 A330s, the airline’s chief executive Akbar Al Baker told at the sidelines of an event in Dubai. Separately, Emirates CEO Tim Clark also reportedly said at the same event that his carrier plans to buy a “chunk” of new 777X aircraft, the stretched, re-winged and re-engined variant Boeing plans to field by the end of the decade. Whereas, Indian carrier Jet Airways, which recently sold its 24 per cent stake to Etihad Airways, seems all set for a massive fleet expansion. Jet has reportedly confirmed an order for 50 Boeing 737 MAX aircraft together with 8‐10 Boeing 777‐300ERs and that the order would be announced at the Paris Air Show. The airline is expected place a further order for INDIAN AVIATION

Key information: ▶▶ ▶▶ ▶▶ ▶▶

Trade-only days: June 17 to 20, 2013 “Student” day: June 21, 2013 General public: June 21 to 23, 2013 Times: 8.30am - 6pm

over 50 A320 neos which will be deployed for Jet’s LCC operations JetKonnect. Jet is therefore expected to announce a total order for over 100 aircraft in Paris. But it is not just Airbus and Boeing to watch out for at Paris as other new entrants vie to break into this cosy airliner duopoly. Bombardier’s and its CSeries has already been mentioned but appearing at Paris will be Sukhoi’s Superjet. Expect to hear more about Russia’s larger singleaisle airliner, the Irkut MC-21 as it too counts down to a first flight in 2015-16. The air show, too, will also give the opportunity

for Brazil’s Embraer to give more details about its planned re-engining of its best-selling EJet family. Regional airliner maker ATR, may reveal more about future plans for a larger turboprop it has been mulling. Japan’s Mitsubishi meanwhile, will be keen to update the world on progress with its airliner, the MRJ, set to fly at the end of this year. Additionally, we might hear an update from China’s COMAC about its civil single-aisle airliner project - the C919. Two previous airshows (Farnborough 2012 and Paris 2011) have seen western airlines in the form of IAG and Ryanair flirt heavily with COMAC. Finally, although two years ago at the 2011 Paris Air Show, aviation biofuels were high-profile, the rapid exploitation of energy reserves by the US, along with lower oil demand from a slowing China, has stabilised fuel prices for airlines, although they still remain high. At the exhibition, there will be a chance to check out the latest progress in sustainable aviation with a dedicated alternative aviation fuels area. May-June 2013

EVENT PREVIEW Military aviation On the military side of the fence, visitors to the 50th Paris Air Show will be treated to daily flight demonstrations of the Sukhoi Su 35 presented by United Aircraft Corporation. Irkut Corporation’s Yak 130, military training aircraft, will also be presented in flight. The organizers are delighted to see so many Russian aircraft at Le Bourget this year, adding to the variety of flying displays of interest to both trade visitors and the general public. The F-35 watchers will be disappointed that the super-stealth fighter will miss another major airshow – despite now arriving in service in greater numbers. A transatlantic flight (with spare aircraft, tanker support etc) would obviously be a major undertaking for the Pentagon in such budget-conscious times but with some Lockheed Martin F-35 partners wavering or thinking about reduced numbers, a public appearance at this major international air show would have demonstrated the type’s growing maturity and quietened some critics. However, combat aircraft fans will be pleased to note a strong presence from Russian aerospace this year. Sukhoi will be bringing its Su-35, the latest 4/5 Gen evolution of its Flanker, now entering service with the Russian Air Force. Kamov’s twin-seat, co-axial attack helicopter, the Ka-52 is also set to appear. Finally show-goers will be able to compare and contrast Antonov’s An-70 airlifter with the Airbus A400M airlifter, which enters service with the French Air Force this year. This Paris air show expects UCAV (Unmanned Combat Aerial Vehicles), too, to be on the agenda. Dassault has already flown the panEuropean nEUROn stealth combat UAS in December 2012. Across the Channel, meanwhile, a similar effort from BAE Systems in the form of the Taranis is expected to fly sometime later this year in Australia.

General Aviation Meanwhile in business aviation the organisers have stressed that this year ‘business aviation is back’ -with only Cessna missing from the line-up of the big general aviation and business manufacturers. Dassault Aviation will be in a special mood for celebration, with its 50th anniversary. A restored Mystere 20 bizjet (S/n 1) is set to appear at the show to mark the occasion of 50 years of Falcon business jets. Showgoers, too, will also be able to learn more about the new bizjet from Switzerland’s Pilatus, the PC-24, which was unveiled at the EBACE Show in Geneva on 21 May. INDIAN AVIATION

Careers Finally another theme to watch for this year at Paris is a continued emphasis on inspiring the next generation of pilots, engineers and technicians. Looking at the giant European enterprises of EADS, BAE Systems, Finmeccanica and others this may seem impossible, but the long development cycles of today’s aerospace programmes means it is vital now to attract the young people who will design, build, fly and maintain the aircraft of tomorrow. To that end the Air Show will feature a brand new exhibit in the static area – a life-size ‘Careers plane’. This representation of an aircraft will be split into parts and allow young people to see

how the different parts of the aerospace industry combine to make a complete product. The organisers believe this will be a prime focus for those attending the show who want to find out more about joining the industry. There is no doubt that Paris, like Farnborough, continues to be a major fixture in the aerospace calendar. Le Bourget still continues to provide a valuable, vital and ‘must attend’ showcase for the global aerospace industry. It may have changed in character, but where else can you find the top aviation and aerospace decision makers and VVIPs in the same city, in the same place at the same time? This is important, particularly when the industry has become so global and geographically spread out. May-June 2013

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31.05.13 15:15

COVER STORY MRO India 2013

Time to regroup

MRO India 2011

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

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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. 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 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 May-June 2013

COVER STORY

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

MRO India 2012

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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 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 May-June 2013

COVER STORY What the participants have to say:

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

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“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.”

“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.”

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

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

“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.”

Ravi S Menon, Executive Director, Air Works

May-June 2013

COVER STORY Indian aviation—an abundance of opportunities There are a number of studies to suggest that India is likely to become the third largest aviation market by 2010, handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. It contributes 1.5 per cent of GDP, supports 9.95 million jobs and is an important driver for economic growth. India will soon become a global aviation hub with its present success and expected robust growth. The importance that the Government accords to the MRO sector of India is amply evident from the Union Budget Speech 2013-14 of the Union Finance Minister, P Chidambaran: “The aircraft maintenance, repair and overhaul (MRO) industry is at a nascent stage. Encouraging the MRO sector will generate employment besides other 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 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. INDIAN AVIATION

benefits. Hence, I propose to provide certain concessions to the MRO industry.” Similar views have been expressed by the aviation regulators of the country. To quote KN Srivastava, IAS, Secretary, Ministry of Civil Aviation, “India has the potential to be a global /regional MRO destination due to continued economic growth, liberalization of aerospace policies, globalization of MRO services, it localtional advantage and the available talent. According to some estimates, India’s MRO segment is expected to grow multifold.” Arun Mishra, IAS, Director General of Civil Aviation of Civil Aviation who inaugurated MRO India 2012, said, “Growth of MRO in India is now a necessity than an option. The airlines in India spend about 13-15 per cent of their revenues towards maintenance, the second highest cost item for airlines after fuel.” 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 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.

Air Officer Commanding-in-Chief, Maintenance Command of Indian Air Force, Air Marshal J Chandra, PVSM AVSM VSM ADC, who was the guest of honour at MRO India 2012 said, “Certain steps like 100 per cent participation of the private sector in defence production, change in offset policy, etc initiated by the Government of India are expected to provide better opportunities to our civil MRO industry to join hands with defence sector. Within IAF, we have shifted our focus from low technology high volume sourcing from Indian indigenous industrial players. We are expecting our MRO industry to partner us for reclamation, refurbishment and re-equipping of our aviation assets. We also look forward to the industry providing us the alternative production processes.” 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 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. May-June 2013

2011

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May-June 2013

2012

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May-June 2013

SPECIAL FEATURE

Indian Navy marks 60 years of Naval Aviation Indian Navy celebrated the diamond jubilee of its aviation wing on May 11 with the commissioning of its first MiG-29K combat jet squadron in Goa.

ndian Naval Aviation completed 60 years on May 11, 2013. The first MiG-29K squadron, INAS 303 â&#x20AC;&#x2122;Black Panthersâ&#x20AC;&#x2122; was formally commissioned into the Indian Navy on that day by Defence Minister AK Antony. Commissioning the INDIAN AVIATION

first MiG-29K squadron of the Indian Navy at INS Hansa in Goa on May 11, Antony said he was confident that the Squadron will make a

significant contribution in enhancing peace and stability in our area of operations. It would also provide effective safeguards for unhindered economic development of the nation and other friendly nations in the Indian Ocean Region (IOR), he May-June 2013

SPECIAL FEATURE said. The Squadron will very soon operate from INS Vikramaditya. Antony also emphasised the importance of India maintaining an edge over its adversaries in defence preparedness which is better served through acquisition of new technology and better training of the personnel, given the fact that the security scenario in the region is changing at a rapid pace. The MiG-29K is a true swing role aircraft which carries enough punch to undertake air dominance and power projection missions simultaneously, bestowing the commander at sea, great flexibility. It takes Indian naval aviation from a defensive stature to one of dominance. The MiG-29K aircraft is a state of the art, all weather, carrier based, air dominance fighter specially built for the Indian Navy. The aircraft has a maximum speed over twice the speed of sound (about 2000 kmph), can pull up to 8 times the force of gravity, can climb to an altitude of over 65,000 feet. Armed with an arsenal of some of the most sophisticated weapons in the world, it is fully equipped to dominate by engaging targets in air, at sea or on land. Latest avionics, with data link capabilities coupled with its range of armament will enable true power projection. With its air-to-air refueling capability, its ranges are also extended to perform true power projection and air space dominance roles. It may be recalled that the MiG-29K supersonic air dominance fighters were inducted by Antony on Feb 19, 2010. Sixteen of these potent aircraft were inducted to form the main combat power of the, soon to be inducted aircraft carrier, Vikramaditya. Since its induction, the aircraft have flown over 2,500 hours and have successfully concluded armament trials of the entire range of arsenal comprising air to surface missiles, air to air missiles, bombs, rockets and guns. After proving in trials, the aircraft have also participated in important theatre level exercises with the Indian Navy and the Indian Air Force. Having successfully completed all tasks and trials assigned and established its combat potential, the MiG-29K squadron has now been commissioned into front line service to form the sword arm of the Indian Navy. In the tradition of naming its fighter squadrons in the 300 series, the MiG- 29K squadron, is christened INAS 303 and is being popularly referred to as the â&#x20AC;&#x2DC;Black Panthers.â&#x20AC;&#x2122; The Defence Minister also inaugurated a state of the art full mission simulator. Equivalent to a Cat D flight simulator, this enables pilot training across the full range of aircraft capabilities including carrier take off and carrier landings, combat missions and even air to air refuelling. This simulator will serve as a force multplier for the aircrew. After flying a 25- minute sortie, INDIAN AVIATION

May-June 2013

SPECIAL FEATURE

INS Vikramaditya

“ I am confident that the Squadron will make a significant contribution in enhancing peace and stability in our area of operations. It would also provide effective safeguards for unhindered economic development of the nation and other friendly nations in the Indian Ocean Region (IOR).” - Defence Minister AK Antony Antony was impressed with the immersive realism of the simulator. The Indian Navy (IN) has embarked on an ambitious plan to have three aircraft carriers— INS Vikramaditya, IAC-1 and IAC-2. While IAC-1 is being built in Cochin Shipyard with a planned launch in August 2013 and possible delivery by 2018, the IAC-2 design has not yet been frozen on account of its preferred configuration – CATOBAR or the low risk STOBAR like the Vikramaditya and IAC-1. There is talk that US help may be sought for catapults for the IAC-2. The Light Combat Aircraft Navy (Tejas) prototype has started flying, but a definite INDIAN AVIATION

schedule and configuration for the aircraft is still pending. Even as the underpowered and overweight Mk 1 variant is being refined ahead of further flight tests, the Navy is waiting for the definitive Mk 2 variant which won’t be ready until 2017-2018. The existing Sea Harriers with the LUSH upgrade are expected to serve till 2017 with INAS 300 ‘White Tigers‘ and INAS 552 ‘Braves‘, by which time the MiG-29Ks should be fully integrated with the fleet. Still, the Navy, while confronting budgetary pulls and pressures, indifference and apathy at the decision making levels is right to look ahead at its carrier acquisitions with a

mixture of hope and apprehension. The fleet air arm is operating well over 200 aircraft today. It is expected to double its fleet size as per the 14th plan. This will make it larger than many regional air forces. Numbering some 10,300 personnel including 1,300 officers, the fleet air arm will require exponential and balanced growth in its human resources and support organizations. As new inductions and upgrades increase, there is a dearth of naval test pilots and flight test engineers. Aircrew examiners, qualified flying instructors and observers will be required in greater numbers. Senior officers have realized that a permanent cadre of officers is an imperative in the air arm. This is because of the shortage of available candidates as the Navy is growing overall. Plus, the skills demanded of pilots and observers are very perishable and a long term plan will benefit the Navy. Naval Headquarters is evaluating cadre management, career planning and progression policies. Some new decisions are awaited soon. The Navy may also soon have a Flag Officer (Naval Air Maintenance) or an ACNS (Air Maintenance) along the lines of the Indian Air Force’s Air Officer Commanding in Chief May-June 2013

SPECIAL FEATURE

(Maintenance Command).This is a much needed recognition of the enormous and extraordinary contributions that the officers and men of these branches have made to the service. The Navy now has 14 female officers as Observers/Airborne Tacticians across its fixed wing aircraft. They are posted to the Dornier228, IL-38SD and Tu-142 fleets. Like their male counterparts, the female officers fly 10 plus hour long missions while posted to the ‘big birds’ of the Indian Navy. They are being made trained for cross-functional postings and there is one female officer undergoing the Boeing P-8I conversion as well. The policy for them will be continued postings in their specialization as they cannot be sent for sea time. This is a wonderful Tiara in Naval Aviation’s Diamond Jubilee. Other induction concerns have been the delay in the Multi Role Helicopter procurement. Also, the Navy wants MALE, HALE UAVs, Amphibious aircraft, MRMR and LRMR aircraft to add to its fleet. To enhance fleet air defences, the LR-SAM is also a must have on the Fleet Commander’s wishlist considering the proliferation of aircraft among the nations of the region. The Tupolevs may get a further life extension as they bring unique capabilities to the arsenal and the Navy will like to retain that capability. So, contrary to some reports, the type will serve for at least another five years, if not longer. The Navy is striving to standardize its ASW mission and sensor suites and sonobuoys across the fleet of MPA. It is also operationalizing a high speed tactical datalink for better situational awareness across different units. The Navy has commissioned INS Baaz, the easternmost Naval Air Station recently. This year INDIAN AVIATION

is an unprecedented year for the Indian Navy’s Air Arm. First, the MiG-29K Squadron has been commissioned as INAS 303, the Black Panthers. Another MiG-29K Squadron is expected to commission the next year. The Boeing P-8 I, of which the Indian Navy is the first and so far only, non-US operator has commenced its induction into the Indian Navy since May 15, 2013. The first aircraft reached INS Rajali and will be part of INAS 312. INAS 312 will thus operate two different types of aircraft whose predecessors were adversaries in the Cold War. The Hawk Advanced Jet Trainer will start its induction in the second half of this year. Pilots/ Instructors are converting with the Indian Air Force at Bidar. It is expected that INAS 551 ‘Phantoms’ will move to INS Dega at Vizag and reform on this aircraft. Facilities for the Hawk at Dega have already been completed. Naval pilots are thrilled with the aircraft’s handling and capabilities

and the aircraft is coming at a right time to help pilots transition to the MiGs, existing Sea Harriers and later the Tejas. The Navy may also sign a contract with Indira Gandhi Rashtriya Udaan Academy (IGRUA) for ab-initio training of its pilot trainees. This will speed up the basic flying of the trainees as the Air Force offers limited slots to the Navy because of its own expansion. Finally, ten years after it was inducted, the Dhruv Advanced Light Helicopter (ALH) will commission as a squadron later this year. The 321 ALH Flight (formerly the ALH IFTU) is expected to be commissioned as INAS 322 and it will be a fitting compliment to the multiple roles and activities that this marvelous rotorcraft has carried out. It’s forte is SAR, SHBO, Utility roles and it was a treat to watch the two ship close formation of the ALH detachment at the INAS 303 commissioning ceremony flyby. With all this, Indian Naval Aviation is only going one way - forward and upward. May-June 2013

GUEST COLUMN

Is PPP right model for airport development?

By Tulsi Kesharwani

n the late nineties, taking into account the global liberalization that led to increasing role of private sector, Government of India had decided to privatise major airports in the country. The process took long time because the Airports Authority of India Act 1994 had to be amended. The amended Act authorizes AAI to transfer the operations and management of its existing airports by way of long-term lease to private players. In May 1986, the Delhi International Airport was leased and handed to a joint venture company, known as Delhi International Airport Limited (DIAL) for management and development in which GMR has a major share. Similarly, Mumbai International Airport was leased and handed over to Mumbai International Airport Limited (MIAL) with GVK as a major shareholder. New greenfield international airports were developed with major private sector participation at Bengaluru and Hyderabad in which majority share holdings are now with GVK and GMR respectively. In all these airports public sector has 26 per cent equity participation: in DIAL and MIAL, AAI has 26 per cent share while in Bengaluru and Hyderabad airports AAI has a share of 13 per cent and another 13 per cent is held by the respective State INDIAN AVIATION

While privatisation of airports has proved to be a boon for development of world-class airports in India, it happened at a heavy cost to the airlines and passengers and also not without pitfalls, says Tulsi Kesharwani

May-June 2013

GUEST COLUMN

Government Public Sector Undertakings. Thus, the privatisation model adopted in these airports is Public Private Participation or PPP. The lease/ concession period is 30 years with provision for extension for another 30 years. The PPP model is based on revenue sharing without any guarantee about traffic or revenue. Some other smaller airports have also been privatized; some other major greenfield airports in Goa, Navi Mumbai and Kannur are being developed with major private sector participation. A period of nearly seven years has elapsed when privatisation process took effect. During this period several developments have taken place and divergent views have been expressed about the success of PPP model and its operation in India. This is a relatively short period but not too short to evaluate whether PPP in airports has been successful. It may be added that the International Civil Aviation Organization (ICAO), the world civil aviation regulatory body, has discussed various privatization models in its publication Privatization in the Provision of Airports and Air Navigation Services (Cir 284 AT/120) including the PPP model applied in India, but has not indicated its preference for any particular model. In its view the choice of the model for privatisation of airports should be on the basis of local conditions. In this article a critical evaluation is presented about operation of PPP in airports in India with special reference to Delhi International Airport. The lease for Delhi International Airport was awarded through open bids system. The decision making process on the bids was complex with several committees, groups and consultants at high levels providing inputs, as the decision making criteria were not very precise. The decision of the Government was challenged in the Supreme Court but it was upheld by the Court.. With privatisation, GMR was able to build a world-class Terminal 3 and an additional runway within a period of about three years before the prestigious Commonwealth Games in October 2010. The quality of Terminal 3 has been appreciated internationally and Delhi International INDIAN AVIATION

Airport has been adjudged second best in the world in its category of traffic. The new greenfield airports at Bengaluru and Hyderabad are also of international standard. Significant improvements have been effected at Mumbai Airport. It is doubtful if AAI could have built such a terminal in Delhi in such a short time, not because it has no expertise but because it is bound by several time taking Government procedures. The provision of necessary funds could have been a major hurdle for AAI considering the requirements of large capital funds for expansion and modernization of Mumbai International Airport, the new international airports at Hyderabad and Bengaluru and several other airports. It may be mentioned that the AAI has recently completed modernisation and expansion of Kolkata and Chennai airports, which are also of international standard and modernised and expanded several other airports. So far the new facilities have been reasonably well maintained. A positive impact of privatisation of Mumbai and Delhi airports has been the generation of significant amount of revenue for AAI from the concession fee paid by DIAL and MIAL. Apart from an initial nonrefundable fee of Rs150 crore from each airport the AAI gets a share of

May-June 2013

GUEST COLUMN

as much as 46 per cent of gross revenue from Delhi Airport and 38.7 per cent from Mumbai Airport each year. As per the AAI’s Annual Report, the revenue from leasing of the airports during 2011-12 was Rs1,237 crore, which constituted nearly one-third of AAI’s total revenue from all its airport operation. This source of revenue may have touched nearly Rs2,000 crores in 2012-13. This is without spending anything on maintenance and operation of these two airports. The AAI’s revenue from these airports will increase continuously due to increase in traffic and periodic revision of charges. Bengaluru and Hyderabad airports will make further addition to revenues of AAI when they start sharing four per cent of their revenue after ten years up to which time there is moratorium on payment under the concession agreement. The amounts received from Mumbai and Delhi

INDIAN AVIATION

airports has been of considerable help to AAI in developing other airports without depending on budgetary support from the Government, which may not have been easy to obtain. The privatisation process has significantly changed the image of the airports in the country. The positive impact on the revenue generation for AAI has been at a very heavy cost to the airlines and passengers. The international airline community led by IATA has been very critical of the recent increase of 346 per cent in aeronautical charges by DIAL effective 15.05.2012. Such a large increase has been unprecedented. Further, DIAL was allowed to levy DF, which was initially not a part of the lease terms but was permitted under the AERA Act. The levy of DF has been questioned in several quarters. The increase in airport charges was on the top of heavy taxation of the aviation industry in India. Although the increases in charges were approved by the Airports Economic Regulatory Authority (AERA), it had limited options in the matter as it had to take into account its own mandate and the costs incurred by DIAL. The most important factor in determining tariff in its mandate and the lease agreements signed by DIAL with the Government and AAI is cost of development and maintenance and operation. As there was no provision for any cap on the aeronautical charges in the lease agreements signed by DIAL with the Government, unlike several countries in which privatization took place, DIAL quoted a very high percentage of its revenues as concession fee. It also built an ambitious and costly new international Terminal 3, which directly or indirectly, had the approval of the Government without fully realizing its impact on charges. The high increase in aeronautical charges has made some adverse impact on airline operations in India. If there had been some reasonable cap on aeronautical charges in the agreements, most probably the bidders would have been cautious and not quoted a very high percentage share of revenue. Further, DIAL would have possibly built a less ambitious Terminal 3. A controversial issue has been about development of second airport in the region (Delhi and Mumbai) and closure of existing airports (Bengaluru and

May-June 2013

GUEST COLUMN

Hyderabad). In 1997 the Ministry of Civil Aviation formulated Policy on Airport Infrastructure which inter alia recommended that “No Greenfield airport will normally be allowed within an aerial distance of 150 km of an existing airport. Where it is allowed as a second airport in the same city or close vicinity, the parameters for distribution of traffic between the two airports will be clearly spelt out.” While there is no direct reference to this policy or commitment about development of second airport in the agreements between the Government of India and DIAL and MIAL, the agreement provides that “the “Right of First Refusal (ROFR) with regard to a second airport within a 150 km radius of the airport will be given to the JVC by following a competitive bidding process, in which the JVC can also participate if it wishes to exercise its ROFR as set forth below. In the event, the JVC is not the successful bidder but its bid is within the range of ± 10 per cent of the most competitive bid received, the JVC will have the ROFR by matching the first ranked bid in terms of the selection criteria for the second airport.” In the absence of clear provision about the development of second airport in the agreements for Delhi and Mumbai airports, its timing and sharing of traffic between the existing and new airport uncertainty has been created. It is necessary that in the bid documents, restrictions on development of other airports in the region needs to be clearly spelt out, especially because the agreements cover a total period of 60 years. Further, while some restrictions on development of second airport may be considered desirable for ensuring financial viability of privatised airports, restrictions without any time limit or without reference to saturation level or capacity utilisation is not appropriate. This aspect needs a clear enunciation in bid documents to ensure timely development of additional second airport, if and when needed. In the case of Bengaluru and Hyderabad airports, the concession agreements provide that after opening of the new airport the existing airports will be closed to commercial civil aviation operations. The decision to close the existing airports after opening the new greenfield airports has been questioned in responsible quarters as the existing infrastructure built at high cost remains unutilised. It could have been operated at least for limited commercial traffic by using the infrastructure already available. About the second airport in Bengaluru and Hyderabad the agreement is relatively clearer. The concession agreement provides no new or existing INDIAN AVIATION

airport shall be permitted by Government of India to be developed as, or improved or upgraded into, an international or domestic airport within an aerial distance of 150 km of the new airport before the twentyfifth anniversary of the airport opening date. The period of 25 years is sufficiently long. Provision could also have been made that if the airport gets saturated before 25 years new airport would be built or an existing airport developed earlier. There are a number of controversial issues regarding Delhi Airport including collection Rs.1472 crore as refundable security deposit without any interest to be repaid after a term of 57 years, much beyond the initial term of lease of 30 years. Collection of such deposits resulted in reduced rental to DIAL and consequently lesser revenue to AAI. It will be appreciated that any agreement covering a period of 60 years can not foresee all possible eventualities. Airports privatisation has faced lesser problems as compared to privatisation in other sectors, especially roads. In conclusion, while privatisation of airports has proved to be a boon for development of world-class airports in India, it was at a heavy cost to the airlines and passengers and also not without pitfalls. The authorities must learn from past experience and ensure (a) providing precise criteria for selection of best bid, (b) reasonable CAP on aeronautical charges, (c) precise definition of revenues, (d) reasonable but clear restriction on development of other airports in the region which could be related with time and capacity both and (e) transparency in award of concession contracts through competitive bidding process. The writer has worked as consultant to International Civil Aviation Organisation in over 30 countries and is presently Director (Aviation), Asian Institute of Transport Development, New Delhi.

May-June 2013

INTERVIEW

Building sustainable future Syed Mohamed Beary Chairman & Managing Director Bearys Group’s

What was the idea behind constructing a building which is akin to Research Triangle Park (RTP) of North Carolina, USA? Are there any similarities between two? While Bearys Global Research Traingle (BGRT) in Bangalore will stand on its merits in any neighborhood context and contest, there is a special significance to the presence of BGRT in its present location and an added reason to recognize its contribution in the field of development. Bangalore is an emerging R&D destination and has a tremendous potential to develop into the R&D hub of India, indeed into a prime R&D destination of Asia too. While Whitefield has already put the city on the IT map of the world, we believe it does not exhaust the possibilities of leveraging the remarkable strengths of our city as knowledge port. The city is already home to over 50 Fortune 500 MNCs and the number is growing. We identified this business opportunity and conceptualized BGRT as a world class R&D facility to meet the highest industry standards. The idea was to make this an RTP of the East. Similar to the RTP of North Carolina, BGRT epitomises an enabling work environment where occupants can interact and work collaboratively yet find places for solitude and creative reflection that inspires research. With large open green spaces there are secluded areas for INDIAN AVIATION

Envisioned akin to the world renowned Research Triangle Park of North Carolina, USA, Bangalore’s Bearys Global Research Traingle (BGRT) is a true example of sustainable architecture, that is slated to become India’s global R&D hub. Bearys Group’s CMD Syed Mohamed Beary speaks to Indian Aviation about the company’s mission to deliver excellence consistently. Here are the excerpts.

May-June 2013

INTERVIEW Unique features of the BGRT building (i) Design & Construction Enhancement: • Longer axis of the building along East West considering Sun Path to minimize solar heat gain. • The building consists of three inter-connected towers having diamond shapes in Plan thus no façade is perpendicular to East, South or West which reduces solar heat gain. • Balconies from 2nd floor to 10th floor flare outwards thus providing shade for the lower floors. Planters have been provided with creepers for additional shading. • South East and South West faces of the building are opaque with all services provided there in, thus creating a double wall with air space to minimize heat gain. • Northern façade is glazed with DGUs (6:20:6) with high performance glass to maximize day lighting and minimize heat gain. Aluminium sections having thermal break. • External Sun shade louvers on North West face of Tower ‘C” have been specially designed to reduce glare and heat gain. • To obviate “Heat Island” effect on ground vegetation has been provided and the open space exceeds the statutory requirements by 121 per cent. Heat Island effect of terrace has been obviated by landscaping, over deck insulation and high albedo painting. (ii) Equipments & Systems Enhancement: • High performance water cooled centrifugal chillers (COP=6.416) • VFD far cooling towers and secondary water pumping. • Heat Recovery wheels • Free air cooling and night purging. • Optimized lighting with LED, T5 and T8 light fittings with sensors. Stand alone solar lighting. • CO2 monitoring concentrated thought. It provides everything needed for enhanced productivity – an environment that is technologically facilitated and intellectually stimulating. Just like the RTP caters to the ongoing research facility, around the BGRT campus there are hundreds of acres of land. With a strong partnership of industry and government committed to convert these into a properly planned R&D district, we can realize the vision of making Bangalore synonymous with world R&D. In this process BGRT is the pioneer and has already made the landmark statement of intent on behalf of the city and the location.

It costs more to build a green building. How did you manage to strike a balance between sustainability and affordability? While the myth is that green buildings costs more and take more time to build, in reality it is not so. By virtue of LEED certification, it is imperative that the complete design parameters, specs, building materials are finalized well before starting construction which is generally not the case. This helps the entire process of construction INDIAN AVIATION

• 30 per cent more fresh air than ASHRAE standard. • Zero discharge building. - Rain Water Harvesting, ground water recharging - STP using MBR technology - Ultra low flow fittings • BMS for efficient operation & maintenance. Displays to help save energy • Solar water heating • CO monitoring & Jet fan system in basements

Other initiatives taken to reduce impact on nature: ●● Reduced heating / impact on local micro climate a) 121 per cent more green landscape/waterscape than statutory requirement. b) Solar reflecting paint on terrace floor. c) No light pollution. d) Mandatory waste segregation at source. Composting at site. Recycling other waste. e) No ozone depleting substances used. ●● Reducing transportation, saving fossil fuel and reducing GHG emissions a) 69 per cent local materials with 80 per cent locally extracted materials used. b) Charging points for electric vehicles. ●● Saving natural resources a) 16 per cent recycled materials used. b) 96 per cent construction waste reused or sold to scrap dealers.

without losing any time or reworks and in effect there was no time overrun and cost overrun. Even though initial capital investment is slightly more, if one considers the life cycle costs, it truly makes great business sense to go for green development.

But, are the occupants willing to pay extra for green space? BGRT’s vision and the tangible and intangible benefits it offers has been widely acknowledged and today it commands well over 40 per cent more revenue realization than any other Grade A non LEED buildings in the vicinity.

What are the advantages it offers to occupiers?

The occupiers get a lot of tangible and intangible benefits. There are huge quantifiable savings such as 84 per cent floor efficiency, 54 per cent energy efficiency, 41.5 per cent reduction in water usage besides 40 per cent saving in operation costs. Also, this is a zero discharge building.

The project promotes ‘Walk to Work’ concept which is new in India. What was the thought process behind this concept? May-June 2013

INTERVIEW

Developers typically follow the success formula which has already been set in motion in that area. This leads to oversupply which more often causes market crash. In BGRT we have clearly broken away from the stereotype. While all around are large residential developments, we have consciously opted for a commercial development which would complement the surroundings and contribute tangibly in respect of environment and neighbourhood. The project promotes ‘Walk to Work’/’Cycle to Work’ culture which is at the root of sustainability. This would help conserve fossil fuels, reduce GHG emissions and improve the neighbourhood air quality in addition to mitigating the bane of traffic congestion.

What is the current status of the building? The building is ready for fit-outs.

Who are your major occupants at the moment?

reduction, savings in operation costs, besides offering several intangible advantages like negating sick building syndrome, enhancing productivity, etc. Furthermore, BGRT is well connected with multiple accessibility through important arterial thoroughfares i.e. Ashram Road, Old Madras Road – an eight lane Express Highway, the Proposed Peripheral Ring Road and is en-route to the Bangalore International Airport.

Do you sell offices in the building or give it on rent or lease?

What is the level of awareness and willingness among Indians for occupying green buildings?

The major occupants are world renowned Schneider Electric which has leased over 5 lakh sq ft to establish their Global Technology Centre - One Campus . A major cosmetic giant L’Oreal has also located its advanced labs. Further, we are in advance negotiations with a biotechnology, aerospace engineering, automobile and pharmaceutical companies.

Both sale and lease options are available.

Does it offer any extra advantage for aviation related companies? Sustainable building by itself offers a great deal of advantages by virtue of energy savings, water

India has come a long way but still has miles to go. The fact that IGBC which started with just 20,000 sq t in 2001 has successfully reached 1.39 billion sq. ft of green footprint endorses that fact. However, for a vast country like India to take things to the next level, it is important that the Government makes green building mandatory in stages at least in metros to begin with and offer some incentives to builders to promote the same. Finally, it is the end-users decision on moving to green building that matters the most.

As a Developer do you build only green buildings? From inception all our projects are synonymous with ‘Sustainable Green Development’. We believe in creating spaces that respect nature and contribute to the neighbourhood. We are perhaps the only developer to have to our credit three Platinum LEED certified buildings. Today, Bearys Group is in the forefront of sustainable development both with regards to its own projects as well as in advancing the green building movement under the aegis of Indian Green Building Council (IGBC). INDIAN AVIATION

May-June 2013

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MRO ASSOCIATION OF INDIA Ministry of Civil Aviation Goverment of India

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