SP's Aviation December 2013 by SP Guide Publications Pvt Ltd

`100.00 (India-based buyer only)

An SP Guide Publication

Sharp Content for Sharp Audience www.sps-aviation.com

REgional Aviation

• Problems & PROSPECTS • interview: K.N. Babu, CEO, Air Costa • Embraer Commercial IN ASIA Business Aviation

• interview: Gilles Gautier, FALCON SALES Vice President FOR EMEA, dassault Falcon

vol 16 ISSUE 12 • december • 2013

Show Report

• dubai air show: Stunning the World Military operations

• IAF’s Humanitarian missions • C-130J in Relief Operations

...& much more

civil aviation training

• interglobe-cae facility launched

RNI NUMBER: DELENG/2008/24199

civil aviation: Market outlook 2014

PAGE 16

For missions as varied as the terrain

It’s the most versatile airlifter the world has ever seen. The C-130J Super Hercules is equally comfortable performing combat rescue, humanitarian relief and deep covert missions. In any kind of weather, at any time of day or night, the C-130J is the flexible airframe that’s ready for India’s most vital missions today — and tomorrow.

www.lockheedmartin.com/C130

table of contents

`100.00 (IndIa-baSEd bUyEr only)

vol 16 ISSUE 12 • december • 2013

An SP Guide PublicAtion

Sharp Content for Sharp Audience www.sps-aviation.com

REgional aviation

• Problems & ProsPeCTs • inTerview: K.n. babu, Ceo, air CosTa • embraer CommerCial in asia

vol 16 ISSUE 12 • dEcEmbEr • 2013

show REpoRt

• dubai air show: sTunninG The world

BusinEss aviation

• inTerview: Gilles GauTier, FalCon sales viCe PresidenT For emea, dassaulT FalCon

MilitaRy opERations

• iaF’s humaniTarian missions • C-130J in relieF oPeraTions

...& much more

civil aviation tRaining

• inTerGlobe-Cae FaCiliTy launChed

RNI NUMBER: DELENG/2008/24199

civil aviation: MaRkEt outlook 2014

pagE 16

Cover IMAGE: Air Costa presently has in its fleet two Embraer E170 aircraft, a third on lease and is buying one E190 soon to take its initial route connectivity up from four to eight.

focusing on growth: air costa has leased two E170 jets from ECC and the third is due from GECAS soon. The plan is to have five E170s and E190s by the end of 2013, ten by 2014 and a total of 25 aircraft by 2018.

Image by: Embraer

Helicopter 6 Technology

Rotorcraft Safety

Civil Regional Aviation 7 Problems & Prospects 10 Embraer – Expanding the Empire

military 26 Infrastructure

12 Business Aviation

Factfile: Legacy 450

Interview 14 Gilles Gautier,

Falcon Sales Vice President for EMEA, Dassault Falcon

18 Captain K.N. Babu,

Chief Executive Officer of Air Costa

32 Rahul Bhatia,

Group Managing Director of InterGlobe, and Marc Parent, President and Chief Executive Officer of CAE

19 Market

Civil Aviation 2014: Cautiously Optimistic

34 Training

World-Class Pilot Training in India

www.sps-aviation.com

page 16

Show report 22 Dubai Airshow 2013 Stunning the World

Lead Story

air costa – a kickstart!

From Tactical to Strategic

28 Operations IAF’s Humanitarian Missions

regular Departments 3

A Word from Editor-in-Chief

4 NewsWithViews – MoD to Seek Opinion of Law Ministry

Founded in 1983 by first-generation entrepreneur LP Bhaskar Rao, the privately-held Lingamaneni group, has tasted success in real estate and construction business. It remains to be seen how the group’s fledgling airline is going to navigate through turbulent skies.

on VVIP Helicopter Deal

– Reliance and Dassault Facility to Produce Wings for the Rafale

35 Hall of Fame Marie Marvingt (1875-1963) 36 NewsDigest 40 LastWord

No Hope Sans Privatisation

Applied for NEXT ISSUE Shape of Future

ISSUE 12 • 2013

table of contents 12

Factfile: Legacy 450

Publisher And Editor-in-Chief Jayant Baranwal senior Editor Air Marshal (Retd) B.K. Pandey Assistant Group editor R. Chandrakanth Senior Technical Group Editor Lt General (Retd) Naresh Chand Assistant editor Sucheta Das Mohapatra Contributors India Group Captain (Retd) A.K. Sachdev Group Captain (Retd) Joseph Noronha

Stunning the World

Europe Alan Peaford USA & Canada LeRoy Cook Chairman & Managing Director Jayant Baranwal Planning & Business Development Executive Vice President: Rohit Goel ADMIN & COORDINATION Bharti Sharma

IAF’s Humanitarian Missions

design Holistic Directions: Jayant Baranwal Creative Director: Anoop Kamath Designers: Vimlesh Kumar Yadav, Sonu Singh Bisht Research Assistant: Graphics Survi Massey

DIRECTOR SALES & MARKETING Neetu Dhulia SALES & MARKETING General Manager Sales: Rajeev Chugh SP’s websites Sr Web Developer: Shailendra P. Ashish Web Developer: Ugrashen Vishwakarma © SP Guide Publications, 2013 Subscription/ Circulation Annual Inland: Rs 1200 • Foreign: US$ 320 E-mail: subscribe@spguidepublications.com subscribe@sps-aviation.com LETTER TO EDITOR editor@sps-aviation.com expert@sps-aviation.com FOR Advertising details, contact: neetu@spguidepublications.com rajeev.chugh@spguidepublications.com SP GUIDE PUBLICATIONS PVT LTD A-133 Arjun Nagar, (Opposite Defence Colony) New Delhi 110 003, India. Tel: +91 (11) 24644693, 24644763, 24620130 Fax: +91 (11) 24647093 E-mail: info@spguidepublications.com Representative Office BENGALURU, INDIA 204, Jal Vayu Vihar, Kalyan Nagar Bengaluru 560043, India. Tel: +91 (80) 23682204 MOSCOW, RUSSIA LAGUK Co., Ltd., (Yuri Laskin) Krasnokholmskaya, Nab., 11/15, app. 132, Moscow 115172, Russia. Tel: +7 (495) 911 2762 Fax: +7 (495) 912 1260

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ISSUE 12 • 2013

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A word from editor-in-chief There is undoubtedly good reason for it as going by the mega deals concluded at the Dubai Airshow held this year, there should be no doubt that there is a definite upswing in the civil aviation industry and notwithstanding the occasional setbacks and impediments, the overall outlook for the civil aviation industry is positive.

As the current year is fast approaching its end, spirits in the civil aviation industry are finally beginning to rise. Globally, the industry is anxiously looking forward to a more cheerful and rewarding year ahead. There is undoubtedly good reason for it as going by the mega deals concluded at the Dubai Airshow held from 17 to 19 November this year, there should be no doubt that there is a definite upswing in the civil aviation industry and notwithstanding the occasional setbacks and impediments, the overall outlook for the civil aviation industry is positive. In this issue is a detailed report by R. Chandrakanth of SP Guide Publications on the Dubai Airshow clearly highlighting how the aviation scenario in the world is changing rapidly with the Middle East region heading the race to become a global aviation hotspot. The Middle East is at a clear advantage being in the centre of a region with the world’s fastest-growing aviation infrastructure, lowest fuel costs and the fastest-growing airlines. Chandrakanth also has an in depth analysis of the outlook for the civil aviation industry for the year 2014 and beyond. Most observes and analysts are optimistic about the prospects of the industry not only for the airline industry but also for business aviation as evident from the interview with Gilles Gautier, Vice President International Sales Dassault Falcon Jet Corporation, included in this issue. Writing from Bengaluru, A.K. Sachdev analyses the prospects for Regional Aviation in India and observes that the government has been tardy in taking steps to promote regional aviation. Tragically, there appears to be no visible sense of urgency in the establishment to exploit this segment of civil aviation. In the final analysis, regional aviation in India is yet to take off. However, despite the situation being not entirely favourable for the airline industry and especially for regional aviation in India, a new player, low-cost carrier Air Costa, has emerged on the scene. Launched by a Vijaywada-based LEPL Projects, Air Costa seeks to exploit regional routes where the intensity of competition would be lower. Air Costa is optimistic about the changes in the operating environment and the several steps that the government is taking to promote regional aviation. The low-cost carrier is hopeful that these will eventually facilitate matters for the industry.

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On the military aviation front, there appears to some forward movement with the contract for the 126 medium multirole combat aircraft for the Indian Air Force (IAF). The contract negotiations that have been going on for the past nearly two years seem to be finally moving forward as evident from reports that Dassault Aviation and Reliance Industries Limited have approval from the government to set up a major facility to manufacture the wings for the Rafale. This must be music to the ears of the IAF. Speaking of the IAF, the newly acquired Lockheed Martin C-130J Super Hercules that have been in service in India for just about two years, have already made a mark for themselves in the disasters that have struck both within and outside the country. A report on IAF’s humanitarian missions by Air Marshal Raghu Rajan has been included in this issue. All these and more in this issue apart from the regular features. Welcome aboard and happy landings!

Jayant Baranwal Publisher & Editor-in-Chief

Issue 12 • 2013

News

with views NEWS: MoD to seek opinion of Law Ministry on VVIP helicopter deal The Indian Defence Ministry will seek the opinion of the Law Ministry on the response given by the Anglo-Italian firm AgustaWestland, before taking any decision on the controversial VVIP helicopter deal, which may be scrapped eventually. The company submitted its response to the Defence Ministry’s show-cause notice, a day ahead of the deadline, but an official said the response and Law

Ministry’s opinion would be studied first before any decision is taken on the deal. India had paid a substantial part of the `3,700 crore deals and received three helicopters, two in VIP and one in cargo configuration. The money paid so far, is for six choppers. The deal has been frozen since February 2013, hours after Italian police arrested the top boss of Finmeccanica.

Photograph: AgustaWestland

VIEWS: In 2010, the Ministry of Defence (MoD) awarded a contract worth Euro 560 million (`3,700 crore) to the Anglo-Italian company AgustaWestland, part of the Italian aerospace major Finmeccanica, for the supply of 12 AW101 helicopters. These platforms were required for use by the President and the Prime Minister (PM) of India as also other heads of states visiting India as the guest of the government. The platforms were to be operated by Air Headquarters (Air HQ) Communication Squadron located at Delhi. In response to a proposal initiated in August 1999 by Air HQ to replace the ageing fleet of Mi-8 helicopters with the Communications Squadron; in March 2002, the MoD issued a global request for proposal (RFP) for the supply of eight helicopters. On initial scrutiny itself of the four vendors that responded to the RFP, three did not fulfil the staff qualitative requirements (SQRs) resulting in a single vendor situation that was not acceptable under the procurement procedures. Under guidance of the Principal Secretary to PM, the SQRs were revised, numbers increased to 12 and a fresh RFP was sent to six vendors in September 2006. After elaborate evaluation and field trials Air HQ concluded that amongst the six contenders, only the AgustaWestland AW101 was fully compliant with the SQRs. Against an advance payment of 30 per cent of the contract value, the company delivered the first three machines in December 2012 and was to supply the remaining nine by mid-2013. Pilots and engineers have already undergone training in the UK and a stock of spares for long-term maintenance has also arrived. However, things went haywire following accusations against Orsi, CEO Finmeccanica, by a former employee after he was sacked for “ethical violations”. Orsi was accused of bribing Indian officials to swing the deal in favour of the company while heading AgustaWestland. The Italian Government then initiated investigation and judicial proceedings against Orsi for the alleged misdemeanour, a step that was inspired possibly by internal conflict in the Italian polity rather than concern for propriety in foreign contracts. This move by the Italian Government also appears somewhat strange as it has the potential to decimate this high value contract leading to substantial financial loss, especially when the Italian economy is passing through troubled

ISSUE 12 • 2013

times. A clear cut case of “cutting ones nose to spite the face”. The first report of possible wrongdoing in the AW101 contract appeared in the Indian media in February 2012. However, after the arrest of the Finmeccanica CEO in February 2013, the MoD handed over the case to CBI for investigation and put on hold further payments to AgustaWestland. On October 21, the MoD issued a final show cause notice to AgustaWestland, seeking to cancel the deal for violation of the integrity pact. Reply to the notice by the company has been referred to the Law Ministry for opinion. Meanwhile, the MoD has rejected an appeal by AgustaWestland for arbitration and there is a strong possibility that the contract may be cancelled by the Indian Government. Disposal of the three helicopters and the spares already with the IAF, as also modus operandi for the recovery of advance payment, are issues that remain unclear. Whatever be the truth behind the allegations of misdemeanour and irrespective of who the beneficiaries of the alleged illegal payments are, it is important that the MoD does not lose sight of the objective of the exercise that began 15 years ago, which is to procure helicopters suitable for VVIP use. Contractual paradigms and corrupt practices need to be regarded as two separate entities. The Defence Procurement Procedure needs to be suitably modified to include provisions for dealing with corrupt practices detected in the process of procurement of military hardware, without these or follow up action impinging on the continuation of contract itself. Unfortunately, in the last decade, the practice of cancelling the procurement process related to defence hardware owing to detection of irregularities, appears to have become the rule rather than an exception. In the case under discussion, the helicopters in question are not “military hardware” and cancellation of the AW101 contract will only degrade the facilities required for VVIP travel. But cancellation of major contracts related to defence equipment required urgently by the Indian armed forces, would undoubtedly have disastrous implications for national security. Hopefully, in the case of the AW101 contract, wise counsel would prevail or will turn out to be another case of “cutting one’s nose to spite the face”. SP —By Air Marshal (Retd) B.K. Pandey

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News

with views NEWS: Reliance & Dassault facility to produce wings for the Rafale The French aerospace major Dassault Aviation and India’s Reliance Industries are planning to set up a facility to produce wings of the Rafale combat aircraft selected by the Indian Air Force (IAF) in the tender for 126 Medium Multi-Role Combat Aircraft (MMRCA). The two firms are planning to set up a facility involving an investment of Rs 1000 crore and as per

industry sources, this facility is most likely to come up in Bangalore. Under the plan, Dassault Aviation would help Reliance to establish the factory that will be similar to its production facilities in France where the aircraft is produced. The Defence Ministry and other agencies concerned have given a go ahead to the two companies for creating the unit.

Photograph: Dassault Aviation

VIEWS: As early as in the beginning of 2012, soon after the Rafale offered by Dassault Aviation of France was shortlisted as the preferred platform in the tender for the MMRCA for the IAF, the French original equipment manufacturer (OEM) had indicated that it had selected Reliance Industries as its Indian partner for jointly producing the batch of 108 Rafale combat jets in India for the IAF. In fact, Dassault Aviation did proclaim that it had already signed a memorandum of understanding (MOU) with Reliance Industries Limited, India’s largest private sector company, “for pursuing strategic opportunities of collaboration in the area of complex manufacturing and support in India”. For Reliance Industries, it would be their maiden venture in the regime of manufacturing for the aeronautical industry. Apparently, the French OEM did not have the required level of confidence in the capability of the Indian aerospace major Hindustan Aeronautics Limited (HAL) to handle the production of a fourth generation combat jet. It is understood that this was based partly on an observation by Timothy J Roemer a former US Ambassador in India, in a confidential cable that somehow was leaked to the media. In his report to the American government, the US Ambassador is believed to have concluded his assessment with the words “HAL’s ability to partner effectively with American firms for the licensed production of the MMRCA, was untested and suspect”. The adverse impression created by this leaked report was further aggravated when a team from Dassault visiting the HAL facility in Nasik, was reportedly disappointed by the infrastructure in place there and expressed concern about “the capability of HAL to absorb the required technology”. Dassault Aviation thus indicated their preference for Reliance Industries over HAL to enter into partnership for building the batch of 108 aircraft in India for the IAF. The French aerospace major wrote to the Indian Ministry of Defence that if it was to shoulder overall responsibility for the project, it should be given the freedom to decide on the quantum of work to be shared between HAL and private companies in India. Dassault Aviation on their part was not willing to be held responsible

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for quality and delivery schedule in respect of those platforms licensed manufactured in India by HAL. The Ministry of Defence held the view that as per the RFP, while Dassault Aviation was free to partner with any Indian company in the aerospace sector to meet with its offset obligations that for this particular contract has been pitched at 50 per cent of the contract value, the licensed manufacture of the platform would be the responsibility of HAL that had been stipulated as the lead integrator in the RFP. The Ministry of Defence further stated that HAL in turn had the liberty to outsource work packages to private companies in the Indian aerospace sector. Also, as the terms of the RFP had been accepted by the bidder for participating in the tender, no deviation would be possible at this stage. Stand adopted by Dassault Aviation was thus rejected by the Ministry of Defence. From the reports appearing in the media in the recent past, it appears that the issue of role of HAL in the MMRCA project over which there were protracted negotiations and consequent delay in the finalisation of the contract, appear to have been finally resolved. Dassault Aviation and Reliance Industries limited have now been given the go ahead by the Indian Ministry of Defence to establish a new facility with considerable investment, to manufacture a major component, the main planes or wings for the Rafale MMRCA. This arrangement appears somewhat similar to that between HAL and Bengaluru-based Dynamatic Technologies wherein work packages have been outsourced to the latter that manufactures major airframe components of the Su-30 MKI for the HAL plant at Nasik. In the case of the MMRCA too, HAL will thus continue to be the lead integrator. After an excruciating delay of two years since the selection of the Rafale, the tender is finally moving towards its logical conclusion. The report in the media is bound to elevate the sagging spirits in the IAF that has been eagerly waiting for the finalisation of the contract. SP —By Air Marshal (Retd) B.K. Pandey

ISSUE 12 • 2013

HELICOPTER

TECHNOLOGY

Rotorcraft Safety Honeywell is providing a clear view to make helicopter flying safer than ever before

Photograph: Honeywell

Year 2012 was a very good year for fixed-wing commercial aviation. In fact, the International Air Transport Association (IATA) named it the safest year in recent aviation history. What’s troubling is that this success is yet to translate to helicopters, as the rate of rotorcraft accidents has remained relatively constant during the past decade. Rotorcraft safety remains a paramount concern worldwide. It’s easy to see why. Given the nature and scope of commercial helicopter operations, spanning search and rescue, medical evacuation and law enforcement, helicopters must fly close to the ground and therefore face an increased chance of collision with terrain and man-made obstacles. Add low visibility to the mix and the need to equip pilots with the best possible safety technology becomes crystal clear. According to the International Helicopter Safety Team (IHST), controlled flight into terrain (CFIT) makes up 27 per cent of all helicopter accidents, with low visibility as the root cause of many such crashes. IHST data collected during 2000, 2001 and 2006 shows that 84 per cent of accidents were due to a problem with “pilot judgement and actions” while “safety management” is ranked second at 43 per cent. However, despite the IHST’s 2006 goal of reducing helicopter accidents by 80 per cent by 2016, actual accident rates have been slow to decline. While helicopter flight remains very safe, even one accident is one too many. This is particularly true when considering that many of the crashes occur while bringing accident survivors or other victims to safety. The helicopter industry continues to grow, and Honeywell’s 2013 helicopter forecast shows that global delivery of new helicopters will increase by up to 5,600 craft by 2017. More rotorcraft in the air increases the need for technology that reduces the pilot’s workload and provides maximum awareness of surroundings at all times to ensure crew and passenger safety. Now is the time to apply our collective expertise in fixed-wing safety technology to the unique conditions faced by rotorcraft. On its part, Honeywell is listening to customers and working to provide the latest safety technology such as our SmartView synthetic vision system (SVS) and extending it to rotorcraft appli-

ISSUE 12 • 2013

cations. In development with our advanced technology team, SmartView for helicopters uses our enhanced ground proximity warning system (EGPWS) terrain and obstacle databases that have been proven in more than one billion flight hours. Helicopter pilots can use next-gen technologies such as SmartView to greatly decrease the chances of CFIT that result from lowvisibility conditions. SmartView provides helicopter pilots with real-time views of the aircraft’s location relative to surrounding terrain. It shows a 3D virtual view outside the cockpit that is free of visual impediments such as the weather conditions or the darkness of night. A primary goal of SmartView is to enhance a pilot’s aeronautical decision-making abilities, which IHST’s research cites as one of the biggest needs to help prevent accidents. A strategic tool, SmartView offers visual displays, approach guidance cues, terrain shading and other intuitive prompts to aid helicopter pilots in critical decision-making. The system synthesizes key flight information and presents it to the pilot in one comprehensive, easyto-understand picture on the cockpit’s primary flight display—ultimately improving overall safety. It directly addresses potential errors in pilot judgement and actions, the leading cause of helicopter accidents. Moreover, this technology can be combined with other enhanced vision system technologies, such as LIDAR and millimeter wave radar, to create a truly integrated “out the window” view of not only terrain and major man-made obstacles, but even smaller hazards, in any conditions. Honeywell has showcased the benefits of safety technology and advanced avionics such as EGPWS and SVS for fixed-wing aircraft and how those technologies can drastically increase flight safety. With the continued growth of the helicopter industry, and with helicopter operations occurring in the challenging environments inherent in low-altitude flight, Honeywell is ready to bring the immense safety benefits of these technologies to the rotorcraft industry. SP —By Mike Madsen, President of Defense and Space at Honeywell Aerospace

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Civil

Regional Aviation

Biju Patnaik Airport, Bhubaneswar, Odisha

Problems & Prospects There is no apparent sense of urgency to exploit this segment of civil aviation. If one were to summarise the prospects for regional aviation in India, one could state that it is still warming up but is yet to take off.

Photographs: Wikimedia

By Group Captain (Retd) A.K. Sachdev

The fact that there is only one regional airline (Air Costa) functional in India, is both a reason to rejoice and a cause for commiseration—the former on account of optimism for the future, and the latter due to regret over collapsed regional attempts in the past decade (since Air Deccan blew the first trumpet announcing a new epoch in the history of Indian civil aviation). The decade gone by has been extraordinarily daunting for the Indian civil aviation industry in general. However, regional

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aviation has had more than a fair share of misfortunes. Not many ventured into the patently unprofitable sector; and the trials and tribulations of those who did, discouraged others waiting in the wings from venturing into regional aviation. MDLR Airlines survived for about two years before caving in, while Air Mantra lasted only a couple of months. The fact that the set of regulatory and infrastructural circumstances that have stunted the growth of regional aviation should have been allowed to endure for more

ISSUE 12 • 2013

Civil Regional Aviation than a decade is mystifying; the self-evident state of regional aviation and the equally transparent causal mechanisms are there for the establishment to perceive (and revamp, if it had the will to). Alas! That has not been done. The major problems afflicting regional aviation are discussed below. Infrastructure The foremost causative factor is the slow development of airports at the Tier-II/III level; eleven states (Bihar, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Meghalaya, Odisha, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand) are barely noticeable on the air map of India. A recent study by Deloitte listed 52 Tier-II and Tier-III cities that have the potential to become busy airports in the future. In recent months, the Airports Authority of India (AAI) has been working rather unsteadily towards improving infrastructure at 35 airports at non-metro stations (including some identified in the Deloitte list). The economic value of improving airports within their geographical domain is also being realised gradually by state governments (Andhra Pradesh being the leader in this regard). However, a macro level comprehension of the contribution of aviation to economy is yet to come about. The Minister of Civil Aviation, Ajit Singh, speaking at the Fourth India-US Aviation Summit in Washington recently, stated that “the Indian Government has taken a number of measures to make air connectivity to remote and interior areas of the country in Tier II and Tier III cities of India affordable”. He also went on to call for more foreign direct investment from America to contribute to airport infrastructure in India—a segment which needs for far more funds than those readily forthcoming from either the government or the private sector. The Privations of Privatisation The Airports Authority of India (AAI) manages 125 airports although India has around 500 airports in varying stages of decay/development. AAI plans to develop another hundred airports and some humble beginnings have been made in that direction. According to the Minister of Civil Aviation, India has envisaged an investment of $12 billion in the airport sector in the Twelfth Five-Year Plan, of which $9 billion is expected from the private sector. However, for aircraft operators and passengers, privatisation of airports has not been an unadulterated delight so far. The cost of operation at airports operated privately or on a public private partnership (PPP) model has

become exorbitant since their exit from the AAI fold and the incremental costs of operation have been passed on to the passengers by helpless airlines. Understandably, there has been severe criticism from airlines and their global representative body, the International Air Transport Association (IATA), primarily on the grounds that it has led to a massive hike in airport costs and charges. Nonetheless, privatisation is inevitable as the cost of development of all 500-odd airports (and some new greenfield ones) is mind boggling and certainly not within the government’s reach, despite the monopolistic regime exercised by the government over airport, parking, navigation and landing charges levied on all aircraft operators. As part of the second phase of privatisation in the near future, airports at Chennai, Lucknow, Kolkata, Ahmedabad, Guwahati and Jaipur, are planned to receive private investments of `4,250 crore for their development. According to the qualification documents issued recently by the Ministry of Civil Aviation, the private players awarded the contracts for operations, management and development in the second phase of airport privatisation programme, would have to make estimated investments in the range of `500-1,200 crore for development and upgrade works at each of these airports. This move has not gone down very well with AAI employees who allege that the government wants to develop only those airports as are expected to generate minimal revenue while the more lucrative ones are being privatised. Balraj Singh Ahlawat, General Secretary, AAI Employees Union, asked a very relevant question, “The government says it plans to develop a network of 100 smaller airports, so why should it not ask private companies to develop those instead of giving only the revenue generating ones to them.” He also feels that AAI revenue has gone down substantially consequent to the privatisation of Delhi and Mumbai airports. Despite opposition from within AAI and despite protests about extortionate charges by aircraft operators, the government appears to be focused on privatisation of a substantial number of airports. Specifically, there is a noticeable haste to finalise the privatisation plans for the six airports mentioned above; although for the time being, the internal resistance has forced AAI to postpone the bidding process for about two months. However, the private route is not a perfect solution to the infrastructure problem. In Karnataka, the PPP model, espoused robustly by the state government for building infrastructure, has failed to deliver results in the aviation infrastructure sec-

BATTLING AGAINST THE ODDS: SPICEJET’S Bombardier Q-400

ISSUE 12 • 2013

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Civil Regional Aviation tor. The PPP projects to develop airports in Gulbarga, Shimoga, Hassan, Bijapur and Bellary are stuck at various stages of development due to problems with private parties. On the other hand, three other regional airports—Mysore, Hubli and Belgaum—were developed and upgraded by AAI and are functioning. The government is now planning to partner with AAI to develop regional airports in the five cities mentioned above. This decision is also influenced by AAI’s announcement that it plans to develop over 100 regional airports across the country. During the discussions on privatisation of more airports, the Planning Commission had proposed a draft concession agreement based on a model linking landing and parking charges at airports to the Wholesale Price Index (WPI). This suggestion was rejected by the Ministry of Civil Aviation as it would have given those charges an upward bias. The Ministry feels that on the contrary, there should be a new index introduced to progressively lower those charges as the airports progressively recover their construction costs. Aviation Fuel Costs Very high aviation fuel costs (60 per cent over the global average) have been a factor afflicting civil aviation in India in general. However, as sales tax/value added tax (VAT) is a state subject; the cost of aviation fuel has a differentiation between states— the spectrum spanning 4-30 per cent. Thus the states charging higher sales tax/VAT on aviation fuel are axing their own interests in the long run. Chhattisgarh, at the lowest end of the continuum, holds out the enticement of low cost of operations and AirAsia is seriously considering making Raipur (one of the 35 airports being modernised by AAI) its hub in India. If a longstanding demand by the airlines industry for placing aviation fuel under the “declared goods” category is acceded to, this differentiation might disappear and bring about an overall positive effect of rendering regional aviation more attractive across the board. The International Lure Bhubaneswar and Imphal have recently been declared international airports and have joined an ever growing list of nonmetro airports with international status. Small airports are increasingly reaching out to international destinations. As an illustration, Pune is now connected to four airports outside India: Dubai, Frankfurt, Sharjah and Bangkok. The charm and significance of being able to fly out from a Tier-II/III (regional) airport directly to destinations abroad will definitely encourage more and more small towns and cities to clamour for developing their own airports. A growth in regional aviation could be expected as a result.

fares in economy class. As a result, India is virtually a 100 per cent low fares market.” In quantitative terms, all indicators display a trend towards the low cost share increasing in the future. However, the low-cost soubriquet is not really justified inasmuch as there are no low-cost terminals to operate from. Costs are being cut by other means than the simple expedient of Spartan terminals which impose low usage charges to the airlines operating from them (with resultant low cost of air travel for passengers). The ongoing infrastructural investment needs to take into account this simple factor and plan for low-cost terminals in the Tier II/III airports now being developed. The existence of low-cost terminals would have the cascading effect of attracting more airlines and passengers due to the lower cost of travel to and from those airports. Regional aviation would receive a tremendous boost as a result. This fact is realised by the establishment too. Speaking at a meet organised by the World Travel and Tourism Council (WTTC) in Hyderabad recently, Arun Mishra, Director General of Civil Aviation (DGCA), said: “The Indian aviation sector is not only facing turbulence in the skies but also on the ground,” and went on to suggest some steps to expand and sustain aviation industry in India; significantly, one of the steps he suggested was the establishment of low-cost airports with no parking charges across smaller cities. Future Programmes The government has been mulling over several initiatives (albeit at an agonisingly slow pace) to promote regional aviation. The Route Dispersal Guidelines regulating a minimum proportion of total air seat kilometres flown by an airline to be flown towards regional aviation are also under review. Plans for the development of around 100 more airports are under way (again at a laborious pace). In short, there is no apparent sense of urgency to exploit this segment of civil aviation. If one were to summarise the prospects for regional aviation in India, one could state that it is still warming up but is yet to take off. SP

The Future is Low Cost As far as airlines are concerned, low cost is the future; the majority of Indian airlines are wholly or partly low cost in their offered services. According to a report by Centre for Asia Pacific Aviation (CAPA), “Domestic aviation has shifted to an almost 100 per cent low fares market. While India’s LCCs have a domestic market share of 63 per cent, passengers flying on full service airlines (Air India and Jet) pay close to LCC

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ISSUE 12 • 2013

Civil

Regional Aviation

EMBRAER – EXPANDING THE EMPIRE With growing demand for regional aircraft, Embraer’s firm order backlog totalled $17.8 billion, reflecting an increase of 4.1 per cent from the last reported quarter. By R. Chandrakanth

F Photograph: Embraer

From the first delivery of Embraer-Jet (E-Jet) to LOT Polish airlines in 2004, Embraer Commercial Jets has had significant global footprint. In October 2013, when India’s new low cost carrier Air Costa started operations with E-Jets, Embraer’s tally of aircraft deliveries globally had surpassed the magic figure of 1,000 jets with 61 customers in 43 countries. Indeed, an impressive story from the Brazilian aerospace major. In the Asia-Pacific region, Embraer commercial jets are making fast inroads as several operators are seeing the benefits of the Brazilian jets, none of which have the middle seat. China leads with three operators – Tianjin Airlines, China Southern and Hebei Airlines – making the best of the E-Jets. Japan (J-Air and Fuji Dream Air) and Australia (Virgin Australia and Airnorth) have two operators each and there is a growing interest in the region, considering Embraer has been talking about the ‘right-size’ to capture untapped markets.

notably to Asia and, to some extent, southward to Latin America. The main drivers that will impact the global air travel industry include – strong pace of economic growth in emerging markets; economic growth driven by middleweight cities and surge of an urban middle class. Embraer has forecast that world air transport demand will increase roughly 2.7 times by 2031, reaching 13 trillion Revenue Per Kilometre (RPK). By 2031, Asia-Pacific and China will be the largest market in the world, accounting for 34 per cent of world’s RPKs. Europe and North America will follow at 21 per cent RPKs each.

World Demand With such growth potential, Embraer has forecast that there would be world demand for 6,795 new jets in the 30 to 120 seat capacity segment over the next 20 years, representing a total market value of $315 billion. The 90 to 120 seat segment will be the largest market with 3,765 new deliveries in the next 20 years, representing 55 per Power of 70-120 Seat cent of the segment, folSegment lowed by the 61 to 90 seat Embraer has been banking segment with 2,625 new upon a few entrepreneurial deliveries or 39 per cent carriers who have recogand the 30 to 60 seat segnized the power of the 70 ment with 405 new deliverto 120 seat aircraft capacEmbraer expects to deliver 90 to 95 commercial ies or six per cent. ity segment. These airlines jets globally By the end of this year Asia-Pacific’s economic with their fleets of E-Jets outlook is above average have brought affordable, quality air service to secondary markets not just in Brazil but with an annual GDP growth rate of 3.4 per cent forecast for the in other countries where the aircraft flies. Carriers in Africa, next 20 years. Japan and India will be at the forefront, followed China and Central Asia are all discovering the enormous poten- by economies of Australia, Indonesia, Malaysia, the Philippines, tial of the 70-120 seat aircraft to build network connectivity South Korea, Thailand, Taiwan and Vietnam. Growing trade links between countries within the region will not only promote with lower-risk increments of seat capacity. In its market outlook 2012-2031, Embraer has indicated local economic prosperity but also drive the need for improved that the centre of gravity for aviation will move eastward, most air transportation links.

ISSUE 12 • 2013

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Civil Regional Aviation LCCs to Boost Air Connectivity Low Cost Carriers in Asia-Pacific will continue to be one of the primary engines of market liberalisation and growth in the region. Such growth will be largely pursued in trunk markets with increased competition. As markets become more liberalised and trunk markets mature, airlines will require 61 to 120 seat aircraft to optimally serve these markets. The Asia Pacific market consists mostly of secondary markets with low and medium demand densities (20 to 300 passengers Per Day Each Way – PDEW). Over half of the flights below 3,500 km in Asia Pacific take off with fewer than 120 passengers onboard, whereas 67 per cent of the singleaisle aircraft flying today have over 120 seats. The majority of secondary markets have medium-haul distance profiles that are better suited for up to 120 seat jets than turboprops. Embraer states that 35 per cent of secondary markets in Asia Pacific are not served non-stop, and more than half of all markets served do not allow for same day (return) travel. Since bilateral restrictions limit service improvement to secondary markets and higher density trunk markets are still growing at attractive rates, airlines in Asia Pacific are not optimised to serve low and medium-density routes. Secondary markets will experience faster growth rates than trunk markets. Therefore, some of these secondary markets will grow to be dense enough to sustain optimised service by narrow body equipment. Nevertheless, at forecasted growth rates, the majority of Asia Pacific markets will still be in the medium-density range (between 50 and 300 PDEW). Embraer forecasts a need for 505 new aircraft in the Asia Pacific region during the next 20 years, 64 per cent of these units to support growth and 36 per cent to replace older generation aircraft. The 30 to 120-seat jet fleet will increase from 185 units in 2011 to 505 by 2031. China Connecting Hinterland China is a key market and the aerospace majors are positioning themselves to capture this market. Presently, the Chinese government is hoping to stimulate traffic to less developed regions in the central and western regions thus opening up the aviation sector further. Jets with fewer than 120 seats account for only nine per cent of the Chinese single-aisle fleet, which is insufficient for regional operations. In comparison, in the US the percentage is about 30. Opportunities abound as three quarters of Chinese domestic market consists mostly of low and medium density demand between 20 and 300 PDEW which are best served by aircraft lower than 120 seats. Embraer forecasts a need for 1,005 new aircraft in China during the next 20 years. Considering these trends, Embraer is positioning itself well globally to address the growing demand. It is quite a competition for aerospace majors in each of the seat segments – 30 to 60 seat capacity; 61 to 90 and 91 to 120. The Embraer family of jets has been strategically placed in the 30 to 120 seat segments and the marketing has been aggressive. The accumulated net orders for Embraer as of September 2013 for Asia-Pacific plus China region were 203 and the accumulated net deliveries were 193. In terms of deliveries the nearest competitor was Bombardier with a figure of 63 while the accumulated net orders were 185 of the nearest competitor – Comac. By the end of this year, Embraer expects to deliver 90 to 95 commercial jets globally for which the company has been aggressive in its marketing. The company expects to achieve total net revenues between $5.9 billion and $6.4 billion with commercial aviation contribution being as high as 52 per cent, followed by executive aviation at 25 per cent; defence and

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The players in the three segments 30-60 seat capacity

61-90 seat capacity

91-120 seat capacity

ERJ-135, 140, 145

Embraer 170, 175

Embraer 190, 195

CRJ–100, 200, 440

CRJ 701, 705, 900

A318

328Jet

Antonov An-148

B737-600

Yak-40

Tu-134

CRJ 1000

BAe-146-100, -200

Superjet 100

Avro RJ70 and RJ85

B717, 727-100, 737-100, 200, 500

Fokker F28, F70

Fokker F100

DC-9, 10, 20

BAe 146-300

ARJ-21

Avro RJ100

MRJ 90

DC 9-30, 40, MD 87 Yak-42, BAC 111 CS100

MARKET SHARE Last Update: september 30, 2013 Manufacturer Airbus Antonov Bombardier Comac/AVIC Embraer Mitsubishi Sukhoi

Boeing Bombardier Embraer Sukhoi

Net Orders 0 2 56 185 203 15 15 476 Deliveries 6 63 193 4 266

% 0% 0% 12% 39% 43% 3% 3%

0%...................... Airbus 0%....................Antonov 12%.......Bombardier 39% ............ Comac/AVIC 43% .................. Embraer 3%.............Mitsubishi 3%................. Sukhoi

2% 24% 72.5% 1.5%

Jet production in seat segment: 30-60; 61-90; 91-120, Region: Asia Pacific+China

2%................. Boeing 24%....... Bombardier 72.5%..................Embraer 1.5%.............. Sukhoi

security at 21 per cent and other business at two per cent. The total 2013 Investment is expected to be $580 million, of which research will represent $100 million, product development $300 million and CAPEX $180 million. With growing demand for regional aircraft, Embraer’s firm order backlog totalled $17.8 billion, reflecting an increase of 4.1 per cent from the last reported quarter. This marked a four-year high in the company’s backlog history. In terms of aircraft breakdown, Embraer’s order backlog comprises 140 E-175; 100 E-175-E2; 78 E-190; 25 E-195-E2; 22 E-195 and 6 E-170 jets. Not for nothing, is Embraer the world’s third largest commercial aircraft manufacturer after Boeing and Airbus. SP

ISSUE 12 • 2013

Civil

Business Aviation

comfort and luxury: Legacy 450 will offer an above premium travel experience to customers

Designed to establish a new class in the executive jet category offering high end technology with extraordinary performance at low operating cost, the Legacy 450 is designed to carry up to nine passengers over 2,300 nautical miles

Photographs: Embraer

FACTFILE: legacy 450 By Air Marshal (Retd) B.K. Pandey

ISSUE 12 • 2013

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Civil Business Aviation The Embraer Legacy 450 business jet began as a concept dubbed as the mid-light jet (MLJ) first made public at the National Business Aviation Association (NBAA) Convention in 2007. On this occasion, Frederico Fleury Curado, the Chief Executive Officer (CEO) of Embraer, described the new business jet to be not an ordinary run-of-the-mill product but a true “game changer”. Later, the Legacy 450 was formally acknowledged at the European Business Aviation Conference and Exhibition held in May 2008 where Embraer unveiled a mock-up of its new midsize business jet the Legacy 500. The slightly smaller Legacy 450 is meant to fill the gap between the very light Phenom 100 and the Phenom 300 models, both of which are already flying in significant numbers across the world. On October 23, 2013, at the National Business Aviation Association (NBAA) Convention & Exhibition, while unveiling the interior of the new Legacy 450, Jay Beever, the Vice President of Marketing and Interior Design, at Embraer, said that the Legacy 450 was the result of the relentless pursuit of ergonomics, craftsmanship, economics and attention to detail. The interior was a culmination of many years of hard work, innovation and craftsmanship.

LEGACY 450 AT A GLANCE Passengers

Crew

Range

2,300 nm (4,260 km)

Maximum cruising speed

Mach 0.82

Cabin length

24 ft

Cabin height

6 ft

Cabin width

6 ft 10 in

commitment to deliver distinctive business aircraft, both the Legacy 450 and the Legacy 500 will offer an above premium travel experience to our customers.” The cockpit of the Legacy 450 offers state-of-the-art Rockwell Collins Pro Line Fusion avionics. The four large activematrix LCDs in the panel connect the pilots with synthetic enhanced vision with an optional head-up display, electronic Superior Performance Designed to establish a new class in the executive jet category charts, maps, graphical weather depiction from an intuitive offering high end technology with extraordinary performance at multi-scan weather radar system that sees up to 300 nautilow operating cost, the Legacy 450 is designed to carry up to nine cal miles out and an airport surface-management system that passengers over 2,300 nautical miles (4,300 km). The range of minimises the chances of making a wrong turn or colliding with the Legacy 450 has been increased to 2,500 nautical miles with another vehicle on the ground, even when visibility is limited. four passengers, 200 nautical miles farther than its initial speci- The system minimises pilot workload while incorporating data fication. The aircraft is powered by two Honeywell HTF7500E from just about every known safety system. The MultiScan series engines, each delivering 6,540 pounds of thrust with weather radar has the predictive capability to guide pilots not which the aircraft can climb up to 43,000 feet after takeoff in just around bad weather but over it. Fusion can grow to accomjust 22 minutes. It is capable of operating from short runways modate developing technology add-ons such as voice recognithus giving access to more airports around the world. It has a tion, surface guidance and automatic dependent surveillancefull stand up flat floor cabin and a fuselage cross section that broadcast (ADS-B), the future of air traffic control. Passengers on the Legacy 450 will be treated to Honeywell’s provides unprecedented cabin space for aircraft in this category. high-definition ovation select cabin management system which allows for control of entertainment, communications, lights, temState-of-the-art Technology The aircraft has full fly-by-wire flight controls (FBW) wherein perature, window shades and more via drink-rail-mounted units, the traditional control yokes have been replaced by side sticks wireless handheld remotes or a galley touch screen. The system connected to an FBW flight-control system. The clean-sheet can interface with high-speed satellite communications and a varidesign of the Legacy 450 made it possible for integration of ety of consumer electronics, including iPods, MP3 players, Apple the first FBW control system ever in a mid-light jet that offers TV and gaming systems. Moreover, it is built on an Ethernet backadvantages for the crew by way of reduced stress and provides bone and offers extensive diagnostic and troubleshooting capabilfor smoother flight for passengers. This system eliminates the ity. Ovation’s media interface also hosts the optional JetMap3HD mechanical linkages between the flight controls and the flight- moving map applications and provides news, weather and sports updates. Ovation uses high-end Rosen control surfaces i.e. ailerons, rudder, HD monitors and Alto audio compoelevator and spoilers. Control inputs nents. The aircraft pressurisation sysby the pilot are combined with sentem keeps cabin altitude at a comfortsor inputs and computerised flightPassengers on the Legacy 450 able 6,000 feet at the 450’s maximum control laws for crisper and faster will be treated to Honeywell’s cruising altitude of 45,000 feet. responses that do not deviate from the aircraft’s performance envelope. high-definition ovation select Project Status cabin management system Designed for Efficiency The Legacy 450 cabin and cockpit was displayed for the first time at the and Comfort which allows for control of NBAA Convention in Orlando, end At the press conference at the NBAA entertainment, communications, October 2012. Originally scheduled Convention & Exhibition 2013, lights, temperature, window for entry into service by the end of Ernest Edwards, President, Embraer 2013, the Legacy 450 is still under Executive Jets declared: “The Legacy shades and more via drinkdevelopment. It is to undertake its 450 will be the best-in-class mid-light rail-mounted units, wireless maiden flight soon and is expected to executive jet. We never stop listenbe certified by late 2014 with service ing to our customers’ input. Thanks handheld remotes or a galley entry thereafter. SP to their invaluable feedback and our touch screen www.sps-aviation.com

ISSUE 12 • 2013

business aviation

Interview

On the occasion of first delivery of Falcon 2000S, Gilles Gautier, Falcon Sales Vice President for EMEA told SP’s Aviation that the Falcon 2000S offers handling and airport performance, lower operating costs and a sticker price equivalent to a smaller, super mid-sized jet but with the large cabin comfort of a Falcon 2000.

FALCON 2000S debuts in india SP’s Aviation (SP’s): What are the unique features of Falcon 2000S? Gilles Gautier (GC): The Falcon 2000S offers handling and airport performance, lower operating costs and a sticker price equivalent to a smaller, super mid-sized jet but with the large cabin comfort of a Falcon 2000. SP’s: How would you compare the 2000S with the 7X? GG: The 3,350 nm Falcon 2000S is our new entry level Falcon, based on the proven Falcon 2000 twin-jet platform, launched in the mid 1990s. More than 500 Falcon 2000 jets have been delivered to date, making it the most popular aircraft in its class. The long range 5,950 nm 7X is a tri-jet and Dassault’s top-of-theline aircraft. It features a brand new wing and a digital flight control system – the first ever installed on a purpose-built Business Jet. Some 200 7Xs have been delivered since its certification in 2007. SP’s: Can you tell us what kind of price tag the 2000S comes with? GG: The list price is $26 million for a fully equipped aircraft featuring interiors by BMW Designworks USA. SP’s: Who is the lucky Indian customer that will operate the new aircraft ? GG: Our policy is to refrain from disclosing the names of our operators. SP’s: How is the Falcon 2000S fairing in other markets? Which is the most promising market at this point of time? GG: Ten Falcon 2000Ss have been delivered since its certification last March. The airplane is selling well all around the globe.

Photographs: Dassault Falcon

SP’s: As one of the key OEMs, does the issue of pilot training concern you? Can you suggest remedies? GG: Pilot training and safety have been at the centre of the Falcon design since the first Falcon flew 50 years ago. The EASy cockpit that equips all our new model aircraft was conceived to optimise pilot performance by simplifying flight management tasks, improving crew coordination and providing unsurpassed situational awareness. And through partner companies, we offer state-of-the-art training that ensures pilots are fully equipped to fly our aircraft at all times. SP’s: Can you indicate the maximum speed, attitude and non-stop range of the Falcon 2000S? GG: At Mach 0.80, the Falcon 2000S can fly 3,350 nm non-stop with six passengers and can climb direct to 41,000 feet in 19 minutes. Typical city pairs include Mumbai-Singapore and Delhi-Beijing. The aircraft is equipped with winglets and full inboard slats that permit it to land and

ISSUE 12 • 2013

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business aviation InterView

Specifications Maximum number of passengers

8-10

Maximum range

3,350 nm

Maximum operating speed VMO

370/350 kias

Maximum operating Mach MMO

M .862 / M .85

Maximum operating altitude

47,000 ft

External dimensions Length

66.33 ft

Height

23.17 ft

Wing span

70.17 ft

Internal dimensions Cabin length (excluding cockpit and baggage)

26.17 ft

Maximum headroom

74.00 in

Maximum width

92.00 in

Cabin volume (excluding cockpit and baggage)

1,024.00 cu ft

Weights Maximum takeoff weight

41,000 lb

Maximum zero fuel weight

29,700 lb

Maximum fuel

14,600 lb

Maximum landing weight

39,300 lb

Engines Manufacturer

P&W Canada

Nbr/Type

2 x PW308C

SL-ISA Thrust

7,000 lb

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takeoff at steep angles and low speed even at high altitude and under high temperature conditions. It needs just 2,315 feet of runway to land – better than any super midsize jet and even comparable to some turboprop aircraft. SP’s: What is so special about EASy II avionics? GC: The EASy II suite provides a number of new standard options, including a Synthetic Vision System, XM weather, dual Jeppesen charts, Runway Awareness and Advisory System and ADS-B out features and WAAS and EGNOS LPV approach capability. EASy II also offers improved display symbology and important flight management system enhancements. SP’s: What kind of sales and delivery figures do you foresee for the Falcon 2000S in India over the next 10 to 15 years? GG: Owing to the poor global economy, fluctuation of the Indian Rupee and inflation, Falcon sales in the Indian region have not met our expectations in recent years. However, the future of both, the Indian market and Business Aviation in general look very promising. We believe that sales will pick up in the years ahead, reinforcing our leadership position in the country. We have made large investments in our customer service infrastructure so that we will be ready for this anticipated growth in aircraft sales. SP’s: How about after sales support and maintenance solutions – are you also expanding your network on this front? GG: Dassault has established a comprehensive customer service network in India, including two authorised service centres in Mumbai; service centres in Delhi and Hyderabad; spares depots in Mumbai and Chennai and a liaison office in Delhi that provides dedicated support for both Falcon and Mirage 2000 fighter aircraft. There is also a technical office in Mumbai. Further afield, Dassault has customer service centres in Singapore, Shanghai and Dubai and a global network of nearly 50 facilities around the globe. SP

ISSUE 12 • 2013

Civil

regional aviation

AIR COSTA a kickstart!

Photographs: Embraer

By R. Chandrakanth

At a time when the airline industry in India is not in a happy state, a business group from Andhra Pradesh unknown in the airline industry has dared to enter the fray. On October 14 this year, Vijayawada-based Lingamaneni Estates Private Limited (LEPL Group), which is into real estate and other businesses, launched Air Costa, with its first flight between Hyderabad and Vijayawada. This move is set to boost regional aviation, which on the Indian aviation scene, for some reason or the other, has been floundering. The airline, which initially planned to commence operations with a fleet of Bombardier Q-400 aircraft, subsequently plumped for the Brazilian Embraer E170 jets that dominate the global regional aviation scene. Air Costa presently has in its fleet two Embraer E170 aircraft, a third on lease and is buying one E190 soon to take its initial route connectivity up from four to eight. It may be mentioned here that Embraer has bounced back in India after the closure of Paramount Airways that operated E-Jets. With plans to tap the hinterland market by connecting Tier II and Tier III cities in India, Air Costa has announced an ambitious investment plan of $150 million by 2015. The group first received a no objection certificate from the Ministry of Civil Aviation in February 2012, and in June 2013, at the Paris Air Show, Le Bourget, it announced its intention to go in for Embraer jets. Having received its Air Operators’ Permit (AOP) from the Directorate General of Civil Aviation (DGCA) in September 2013, Air Costa commenced operations in October with

ISSUE 12 • 2013

plans to set up a Maintenance, Repair and Overhaul (MRO) facility at Gannavaram Airport near Vijayawada by 2015. Presently, its maintenance centre is at the Chennai International Airport. The airline has leased two E170 jets from ECC and the third is due from GECAS soon. The plan is to have five E170s and E190s by the end of 2013, ten by 2014 and a total of 25 aircraft by 2018. Presently, Air Costa has operations from Ahmedabad, Bengaluru, Chennai, Hyderabad, Jaipur and Vijayawada. Chennai is planned to be the operations hub of the airline. In the near future, there are plans to connect Visakhapatnam, Goa, Madurai, Thiruvananthapuram and Mysore. “We are adopting an operational strategy wherein we would be focussing mostly on under-served and lesser competitive routes,” Air Costa Chairman Lingamaneni Ramesh stated ahead of the launch. Air Costa will have unconventional city-pairs connecting Tier-II and Tier-III cities, looking at routes not served by established carriers. It plans on having pan-India operations by 2015, with 14 routes and connect 25 destinations in three years from then. Air Costa will follow a flexi-fare system with the lowest fare being `3,000. The aircraft is configured to seat 67 passengers in economy and economy plus class. Currently, the low-cost airline has about 300 employees including foreign pilots and engineers. According to Deepak David, financial adviser to LEPL, air travel is expected to grow steadily in India with a compound annual growth rate of 20 per

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Civil regional aviation

resently, P Air Costa connects: Chennai-Ahmedabad Chennai-Hyderabad Chennai-Jaipur Chennai-Jaipur (Via Hyderabad) Ahmedabad-Chennai Bangalore-Jaipur Bangalore-Vijayawada Hyderabad-Chennai Hyderabad-Jaipur Jaipur-Bangalore Jaipur-Chennai Jaipur-Chennai (Via Hyderabad) Jaipur-Hyderabad Jaipur-Vijayawada Vijayawada-Bangalore Vijayawada-Jaipur

Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily

cent. This is expected to see the air traffic cross 70 million by 2014. Rapid urbanisation has led to the burst in traffic between metros and non-metros, he said, adding there was scarcity for regional and charter operations in South India. “There is a huge market potential in such point-to-point and feeder routes, which offer 59 per cent of potential revenue per kilo metres (RPKMs).

These are the non-trunk routes that Air Costa will tap into.” John Slattery, Chief Commercial Officer (CCO), Embraer Commercial Aviation said, “We are delighted that Air Costa has chosen the E-Jets for their operations. The aircraft are sure to promote greater regional connectivity in India.Embraer has always maintained that the regional aviation market in India has tremendous potential. Our E-Jets are the right sized aircraft for service between secondary and tertiary markets which are underserved and are, in fact, growing faster than metro markets.” “Air Costa has chosen E-Jets for their efficiency and reliability. Our plan is to link underserved markets in India with more direct flights,” said Captain Babu, CEO – Air Costa. “The E170 and E190 jets are ideal in size and range. We can add frequencies and routes without adding too much capacity, thus serving places with seasonal demand, as well as key secondary and tertiary business centres.” “Regional services have a lot of potential in India especially as the economy of South Indian cities is booming. We are committed to further growth in the Indian market with additions to our fleet and launching new routes over the medium term,” said Ramesh Lingamaneni, “We are very pleased with the support that Embraer has provided to date for the launch of our Air Costa and we look forward to a long successful and mutually rewarding relationship.” Founded in 1983 by first-generation entrepreneur LP Bhaskar Rao, the privately-held Lingamaneni group, has tasted success in real estate and construction business. The group has completed many real estate projects in Vijayawada and is currently building a satellite township project in an area of 32 million square feet with an investment of close to a billion dollars, according to media reports. The group’s website says it also has a presence in other sectors such as renewable energy, health care, education and hospitality. It remains to be seen how the group’s fledgling airline is going to navigate through turbulent skies. SP

flying high: Air Costa presently has in its fleet two Embraer E170 aircraft, a third on lease and is buying one E190

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ISSUE 12 • 2013

CiviL

Interview

EMBRAER THE GAME CHANGER IN INDIA At a time when commercial airlines in India are struggling, we see a couple of new ones getting into the airline business with different revenue models. Will it work? Only time will tell. However, from an unknown quarter in aviation, Vijayawada, we see the birth of yet another low cost carrier – Air Costa. The Chief Executive Officer of Air Costa, Captain K.N. Babu in an interview with R. Chandrakanth, spells out the plans of the airline, without divulging details of the investments made by the promoters, LEPL Projects (formerly Lingamaneni Estates (P) Ltd.). SP’s Aviation (SPs): Presently, the airline business in India is one of the sectors where investor confidence is low. Despite that, you have ventured to start Air Costa, what gives you hope? Captain K.N. Babu (Babu): The following are the market drivers that we considered along with our strength (LEPLs) to enter into aviation: • Air travel is expected to grow steadily; air traffic set to cross 70 million by 2014 • Rapid urbanisation in Tier II and III cities • Favourable government policy for investment by foreign carriers up to 49 per cent • Development of Tier-II and -III cities airport infrastructure • Government initiative to reduce fuel costs • Government approval for ancillary revenue – potential for a sizeable revenue in the next two years • Exemption of sales tax on direct import of aviation turbine fuel (ATF) • Landing waivers for aircraft such as E170 that have fewer than 80-seat capacity

figuration economics work for a low cost airline? If yes, how? Babu: We plan to operate on the regional routes that are not suitable for the bigger jets. These routes are presently being catered to by smaller turboprop aircraft which are not comfortable and take longer to travel. Our jets will be a huge game changer on these thin routes.

“The aviation market is poised to grow steadily and we would like to tap into this growth.” —Capt. K.N. Babu, CEO, Air Costa

SP’s: One of the major hindrances for growth of regional aviation in India is lack of airport infrastructure and high costs at certain airports. How do you see yourself in such a scenario? Babu: The Government has recently taken many steps to develop aviation infrastructure in the country. There is a big move to privatise many major of the airports being operated by the Airports Authority of India (AAI). The Government has also announced plans to develop many Tier II and III airports and since we plan to operate in this sector, we hope to benefit by this move. SP’s: Air Costa is betting big on Embraer’s E-Jets, is it all about ‘right-sizing’ of seat configuration? Will the seat-con-

ISSUE 12 • 2013

SP’s: Air Costa has announced connections to and from Vijayawada, Jaipur, Bangalore, Hyderabad, Chennai and Ahmedabad? Are all connections operational and what has been the response? Babu: Yes, we are operational and we are seeing good loads on all these routes. We are planning to expand through additional frequency and also adding newer routes.

SP’s: You have announced that you will go for a pan-India licence. Will this be biting off more than you can chew? Babu: Our strategy to operate pan India would give us better flexibility in route planning and also profits through route rationalisation. The aviation market is poised to grow steadily and we would like to tap into this growth. SP’s: Can you outline the aircraft delivery schedule? Also can you indicate what kind of fuel efficiency these E-Jets have promised? Babu: Our aircraft are fuel efficient for the sectors that we plan to operate. We plan to expand to 25 aircraft in the next five to six years’ time. SP’s: What is your target for market share and where do you expect it to come from? Babu: We plan to target the growing Tier II and III cities. SP

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Civil

Market Tall order: Dubai-based Emirates airline has placed an additional order for 50 A380 aircraft

CIVIL AVIATION 2014: CAUTIOUSLY OPTIMISTIC

Photograph: AirBus

Both commercial and business aviation have bounced back and expect much better performance in 2014.

By R. Chandrakanth

Will 2014 bring cheer to the civil aviation industry? It is an emphatic “Yes” based on the mega deals worth $200 billion concluded in the opening days of the Dubai Airshow signalling that the sector was once again taking off. Surely, there is an upswing in the civil aviation industry and notwithstanding some bad patches, the overall outlook is positive. The International Air Transport Association (IATA), the Airports Council International (ACI) and the International Civil Aviation Organisation (ICAO) have understandably all been cautiously optimistic as the industry is emerging from a major recession. Then all of a sudden we see shifting of gears, a la Dubai, with nearly 500 airplanes, predominantly Boeing and Airbus, ordered by different carriers to be delivered in the next few years. If this is not an indication of resurgence, nothing else is.

tor General of IATA, Tony Tyler had stated that IATA was revising the industry outlook to a profit expectation of $11.7 billion, downgrade by $1 billion announced earlier in the year. “That is because the industry situation is not improving as quickly as we had expected. But, I should stress that it is an improvement on the 2012 profit of $7.4 billion. We expect a further strengthening by the year end that will set the industry up for $16.4 billion profit in 2014. This would make 2014 the second strongest year this century after the record breaking $19.2 billion profit in 2010.” Similarly, ICAO has indicated that global air passenger traffic is expected to grow by 5.9 and 6.3 per cent in 2014 and 2015 respectively. In 2012, it grew by 4.9 per cent reaching 5.4 trillion passenger kilometres performed (PKPs). This year, it is expected to be a point lower at 4.8 per cent.

Good Times Ahead IATA’s assessment made before the Dubai Airshow had an undercurrent of caution. The Chief Executive Officer and Direc-

Forecasts Indicate Growth Despite the regional turmoil and a pessimistic short-term economic outlook, airlines in the Middle East should continue to reg-

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ISSUE 12 • 2013

Civil market

Air Traffic Medium-Term Forecasts till 2015 International and Domestic Traffic Passengerkilometres performed (PKPs) Annual Growth Rates (%) 5.9

6.6

6.3

4.9 4.8 11.1

8.7

8.6 7.6

3.3

1.3

2.4

2.3

6.4

7.1

6.4

3.8 6.8

5.5

9.2

0.9

5.2

4.2

9.5

2011

11.2

10.8

5.7

10.2

13.7

3.9

4.4

5.5

6.2

2012*

2013

2014 Forecasts

2015

history

Region of State’s AOC Holders Europe Africa

Middle East Asia/Pacific

North America World Latin America/Caribbean * Preliminary figures (ICAO)

ister the fastest traffic growth with a 10.2 per cent increase over 2012. This forecast is based on the strong performance of its largest air carriers in gaining market share on international routes. The airlines of Latin America/Caribbean, Asia/Pacific and Africa are expected to register 7.6, 5.5 and 5.2 per cent growth in 2013, respectively. Passenger traffic in Europe and North America should increase by 4.4 and 2.3 per cent in 2013, respectively, leading to a slightly higher share of traffic for European carriers than for North American operators. The Asia/Pacific Region will remain the largest market. Current expectations of a 4.0 (2014) and 4.5 (2015) per cent annual GDP at PPP growth rate for the world economy over 2014–2015 should translate into global air traffic growth of 5.9 and 6.3 per cent respectively. Passenger and Cargo Traffic Optimism is on the passenger side of the business rather than in cargo. Tyler stated that, “ Passenger business is showing robust growth in demand – about five per cent. This is slightly below the 5.3 per cent growth in 2012. In fact it is slightly disappointing that we are not maintaining that in 2013. Emerging market growth in India, Brazil and to an extent China, has been slower than anticipated. This has been somewhat balanced by

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improvements in the US economy as well as a stabilisation in the Eurozone. Although load factors are high (around 80 per cent), we have seen little improvement in yields.” TyIer continued, “In 2014, we expect the pace of growth to pick-up to around 5.8 per cent. We do not, however, see any good news for passenger yields. In fact we expect a fall of about 0.5 per cent next year. The cargo business is a completely different story. The market is flat – with demand growth of just 0.9 per cent this year. As the supply side of the equation is driven to a large extent by developments in the passenger business, we expect cargo yields to fall by 4.9 per cent this year. For 2014, we do see an uptick, largely resting on the indications of improving business confidence. The expectation is for demand growth of 3.7 per cent. But yields are expected to deteriorate by a further 2.1 per cent. To add some context to the cargo situation, cargo revenues peaked in 2011 at $67 billion. This year we expect revenues of only $59 billion. And that will increase to $60 billion in 2014. So basically revenues are back at 2007 levels.” Fuel Costs Tyler also stated, “If we look at the cost side of the business, the biggest item is fuel. We expect it to be 31 per cent of costs this year and 30 per cent in 2014. Jet fuel should fall slightly to $122.9 in 2014. A decline is good news, but the price is still high. The average price for jet fuel in 2004 was $49.70 per barrel.” North America, Europe Bouncing Back IATA expects North American carriers to deliver a combined profit of $4.9 billion this year - increasing to $6.3 billion in 2014. Consolidation and international joint ventures are driving efficiency gains. Consumers are benefitting from expanded networks as well as significant investments in product improvement. The stabilisation in the Eurozone and strength in longhaul markets should see profits rise to $1.7 billion this year and further to $3.1 billion in 2014. It is moving in the right direction, but that is far from being healthy, said Tyler. Asia-Pacific It is the only region where IATA expects profits to decline in 2013 compared to 2012. In 2012 Asia-Pacific carriers made $4.0 billion. That will decline to $3.1 billion this year and partially recover to $3.6 billion in 2014. IATA notices a strengthening of the Japanese industry as a result of re-structuring and domestic market strength in China. Asia-Pacific carriers are the biggest players in air cargo. Consequently, they are suffering the most from the stagnation in cargo markets. And the weakness in India is also a drag on the region’s prospects. Growth in Middle East The Middle East – particularly the Gulf – is on an improvement trend. IATA expects a $1.6 billion collective profit in 2013 to increase to $2.1 billion in 2014. Demand, driven by long-haul connections through the region’s hubs, continues to expand at a double digit pace. In Latin America, the $600 million 2013 profit is expected to grow to $1.1 billion next year. Long-haul markets to North America are doing well. Connections to both Asia and Africa show promise. But growth has been affected adversely by economic weakness in Brazil. Africa is facing stiff competition in long-haul markets and is unable to efficiently develop intra-Africa markets. The region’s carriers are hovering around break-even with a $100 million loss in 2013 expected to improve to a $100 million profit in 2014.

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Civil market Profits Anticipated Tyler said “I must remind everyone that even with the overall improvement expected in 2014, the buffer between profit and loss is very small. If we divide a $16.4 billion profit among 3.3 billion travellers, you will see that airlines will make about $5 per passenger. New taxes and more onerous regulation can quickly erode that. So things are improving, but we are not yet at sustainable levels of profitability.” “Overall, the story is largely positive. Profitability continues on an improving trajectory. But we have run into a few speed bumps. Cargo growth has not materialised. Emerging markets have slowed. And the oil price spike has had a dampening effect. We do see a more optimistic end to the year. 2014 is shaping up to see profit more than double compared to 2012,” he added. Airlines are expected to see a significant boost in 2014 with profits of $16.4 billion in revenues totalling $743 billion. Rising business and consumer confidence levels should indicate an uptick in the global business cycle (2.7 per cent GDP growth is expected) which has a direct impact on airline profitability. Profitability in All Regions IATA expects slightly more robust passenger growth (5.8 per cent) and a significant improvement in cargo growth to 3.7 per cent. Yields, however, for both passenger and cargo markets are expected to continue to fall by 0.5 per cent and 2.1 per cent respectively. All regions will see improved profitability, but divergence in performance will remain. • 2014 is expected to be particularly strong for North American carriers ($6.3 billion net profit, the industry’s strongest) as the economy improves. Capacity discipline is expected to see yields improve, bucking the global trend. • European carriers are also expected to see a near doubling of profits to $3.1 billion (although even this will only generate an EBIT margin of 1.9 per cent with only African carriers being lower). • Asia-Pacific is expected to see a modest improvement in profitability to $3.6 billion, largely on the back of improved cargo performance, the growing Chinese domestic market and the benefits of restructuring in Japan. • Middle East carriers are expected to post a $2.1 billion profit (their highest ever). • Carriers in Latin America are expected to see profits rise to $1.1 billion. • African airlines are also expected to return a combined profit of $100 million. Even with the significant improvements expected for 2014, an industry profit of $16.4 billion implies a return on invested capital of just 5.2 per cent. That remains significantly below the industry’s weighted average cost of capital which is hovering between seven and eight per cent.

The outlook reflects an approximate three to four per cent increase in projected delivery value over the 2012 forecast. Despite slightly lower unit deliveries, the expected value comes from price increase and change in expected business jet delivery mix, which reflects preference for larger business jet models. “2014 industry deliveries are anticipated to be up modestly, reflecting recovery in supply-side constraints and some gains linked to the projected pace of global economic recovery,” said Rob Wilson, President, Honeywell Business and General Aviation. Honeywell found that the operators plan to make new jet purchases equivalent to about 28 per cent of their fleets over the next five years either as a replacement or additions. This level of interest has been largely stable for the past four survey cycles and compares favourably with results of 25 per cent or less that was the norm until 2006. Of those new business jet purchases, 19 per cent are intended to occur by 2014, with larger shares of more than 22 per cent each year scheduled for 2015 and 2016. Higher purchase expectations continue to focus on larger cabin aircraft classes ranging from super-midsize through the ultra-long range and business liner, implying these types of aircraft will command the bulk of the value billed from now until 2023. Avinode Business Intelligence forecasts a positive year for the business aviation markets in Europe and the US in 2014. The company projects a 0.7 per cent increase in business jet flights in the US next year, with positive numbers across most of the regions. In Europe, despite several years of negative growth, Avinode predicts that the market will remain flat in 2014 with a marginal 0.1 per cent growth. In conclusion, both commercial and business aviation have bounced back and expect much better performance in 2014. Emerging markets of India, China, Brazil and a few African and Latin American countries, will be the key drivers of growth. The industry has shown resilience and optimism, hence the positive outlook. SP

Modest Jump for Business Aviation In its 22nd Annual Business Aviation Outlook, Honeywell forecasts 9,250 new business jet deliveries worth over $250 billion in the period 2013 to 2022.

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ISSUE 12 • 2013

Show report Dubai AirShow 2013

stunning the world Photographs: dubaiairshow.aero, Airbus, Boeing

Mega deal: the opening of the dubai airshow; (right) Boeing Chairman, President and CEO Jim McNerney (third from left) presenting a 777X model to Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates Airline, during the launch of the 777X at the Dubai Airshow.

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Show Report Dubai AirShow 2013

At the Show, Emirates alone ordered $99 billion worth of aircraft, the Boeing 777X and the Airbus A-380 Superjumbo. Besides, its sister airline “FlyDubai” weighed in with a $11.4 billion order for 111 Boeing 737s and 737-800s.

By R. Chandrakanth, dubai

The world aviation scenario is fast changing and the Middle East region is racing towards becoming an aviation hotspot. The credit goes to the Arabs who are using not just the petro-dollar to great effect, but also their vision, their foresight and their astute investment sense. And the tallest of the Arab is the ruler of Dubai (also the Vice President and the Prime Minister of UAE), Sheikh Mohammed bin Rashid Al Maktoum. Led by Emirates airline and the Dubai World Central International Airport, both soaring to great heights, the region is being transformed as major international aviation hub. Not just Dubai, but also Abu Dhabi which is home to Etihad Airways; Doha which prides Qatar Airways; and other capitals such as Muscat, Bahrain, Jeddah are up there, making waves. There are many obvious advantages for Middle Eastern carriers, the foremost being fuel (35 per cent of airline’s operating costs) which is cheaper than the rest of the world. Airlines that have operating hubs in the Middle East benefit substantially. Another advantage is employee costs (16 per cent of airline’s operating costs) and most of the employees are expatriates. So there is a race not just among the airlines of the Middle East but also others who want to capitalise on these advantages. Tsunami of Orders It was a tsunami of orders from the Middle Eastern carriers that hogged the limelight signalling the return of good times. Emirates made a record-breaking announcement of a 200-aircraft deal (150 Boeing 777X and 50 Airbus A-380) for $99 billion. Emirates said it is the, “largest ever aircraft order in civil aviation and also its largest order announced at any event to date.” The agreement was signed at the Dubai Airshow by Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and CEO, Emirates Airline and Group, with Jim McNerney, Chairman, President and CEO, Boeing and Fabrice Brégier, President and CEO, Airbus.Following closely were Etihad and Qatar Airways with the former ordering 199 aircraft (mix of Boeing and Airbus) and 294 engines, for $67 billion. Qatar Airways ordered 50 Boeing aircraft worth $19 billion. It truly was an Arab rising of the aviation kind and the Dubai Airshow is right at the top, nudging aside Farnborough and Le Bourget. Emirates All the Way Striding globally, Emirates is becoming a popular choice of travellers worldwide, thanks to its connectivity, reasonable fares and incomparable passenger experience. To meet the growing demand, the airline is acquiring aircraft left, right and centre. At the Show, Emirates ordered $99 billion worth of aircraft, the Boeing 777X and the Airbus A-380 Superjumbo. Its sister airline “FlyDubai” weighed in with a $11.4 billion order for 111 Boeing 737s and 737-800s. In the history of US commercial aviation, Emirates placed the single largest order for Boeing 777X by value and the addi-

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tional A-380 order cements Emirates, already the largest operator of this aircraft type, as the principal customer for the A-380 worldwide. These latest orders bring Emirates’ total firm order book to 385 aircraft (excluding options), comprising 214 Boeing 777s, 101 Airbus A-380s and 70 A-350s for $166 billion. “Air transport is a key enabler of world trade and we see that demand for aviation services will continue to grow globally. What we are announcing today is a continuation of our commitment and vision to connect the world through our efficient hub in the Middle East. Emirates’ aircraft orders today, with deliveries of the 777X scheduled to start in 2020, will take us to 2025 and beyond, replacing aircraft due for retirement and providing the foundation for future growth,” said Sheikh Ahmed bin Saeed AlMaktoum, Chairman and CEO, Emirates Airline and Group. Flagship of Emirates Fleet Emirates currently operates the world’s largest fleet of A-380 with 39 in service. Its order for 50 additional A-380s brings the total A-380 order to 101 aircraft, worth $45 billion. A combination of two and three-class cabin configuration, the first 25 of these latest A-380 aircraft orders are scheduled to be delivered before the first quarter of 2018. “The A-380 continues to be the flagship of our fleet and after five years in operation, it remains highly popular with our passengers,” said Tim Clark, President Emirates Airline. “This latest order will help us meet both fleet expansion and replacement needs.” Etihad Mantra - Organic & Inorganic Expansion Unlike Emirates, the Abu Dhabi-based Etihad Airways has taken on the route of organic and inorganic expansion. Etihad ordered 56 new Boeing wide-body aircraft, with options and purchase rights for a further 26. The deal included 25 next-generation Boeing 777X, 17 of which are 777-9X and eight 777-8X aircraft. It also ordered a further 30 Boeing 787-10 Dreamliners and one Boeing 777-200 freighter making it the biggest customer for the American jet. Etihad also placed orders with Airbus for 50 A-350 XWB and 36 A-320neo family aircraft, in addition to one A-330-200F freighter plus options for a further 30 freighters to support global expansion of operations. The President and CEO of Etihad, James Hogan said, “We have announced 199 aircraft, 294 engines, positioning Etihad Ariways for the next decade of growth.” The total value of the deals is over $67 billion. Deliveries would start in 2018. Engines ordered include 127 GE Aviation, 115 Rolls-Royce and 52 CFM. Etihad’s aggressive buying falls into its 2020 plan to have over 160 aircraft and nine fleet types that include ten Airbus A-380s and 41 Boeing 787 Dreamliners. The carrier aims to fly 25 million passengers annually to 120 destinations. Etihad’s strategy has been clear and aggressive, aiming to grow fast and wide for which it is in the process of acquiring

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Show Report Dubai AirShow 2013

airlines and aircraft. It has equity stake in Air Seychelles, Air Berlin, Virgin Australia, Air Serbia and Ireland’s Aer Lingus. It is about to close a deal for a 24 per cent stake in India’s Jet Airways.

key player: The world’s largest A380 customer, Emirates, expanded its total orders for Airbus’ 21st century flagship jetliner with a 50-aircraft booking signed at the Dubai Airshow; (right) The Airbus Military A-400M airlifter was a first-time visitor at the Airshow.

Photographs: Airbus

Expansion of Qatar Airways With Emirates and Etihad on an expansion spree, Qatar Airways is not far behind. The Doha-based airline formally announced an order of 50 Boeing 777-9X, the first acquision of this variant. Currently, its fleet has various aircraft types including 51 Boeing 777s – extended range, long range and freighters, 37 of these are currently in service with the remaining pending delivery. Qatar Airways CEO Akbar Al Baker said, “For Qatar Airways, the Boeing 777 is our flagship aircraft and the backbone of the fleet. Operational on many of the routes Qatar Airways flies to, it is well admired by our crew and passengers alike.I It is simply a fantastic aeroplane.” Boeing Chairman, President and CEO Jim McNerney said, “Boeing is proud to have Qatar Airways amongst the launch customers for the new 777X programme. Qatar Airways has enjoyed remarkable worldwide growth in recent years and we look forward to continuing to support the airline on its path to further success in the future.” Qatar Airways also placed a firm order for five new Airbus A-330-200 Freighter aircraft. These new aircraft will complement the airline’s rapidly growing network, which includes more than 40 routes that have dedicated freighter services. Included in the order are eight additional A-330-200F options which would make today’s deal worth over $2.8 billion for 13 aircraft. Defence and Aerospace With the Middle Eastern countries showing tremendous appetite for aerospace and defence, Boeing is zeroing in on this market showcasing a range of products and services including a United Arab Emirates (UAE) Armed Forces AH-64D Apache, an AH-6i light attack/reconnaissance helicopter, a Qatar Airways and Royal Brunei Airlines’ 787 Dreamliner and a ‘FlyDubai’ 737-800 featuring the Boeing Sky Interior and business class configuration. The Boeing P-8A Poseidon maritime patrol aircraft made its international Airshow debut. “Our presence in the Middle East goes back decades,” said Jeffrey Johnson, President - Boeing Middle East, “We have

ISSUE 12 • 2013

earned the trust of our partners and customers here through meaningful collaboration, contribution to the community and by providing the right products and services at the right time. We remain committed to further expanding our presence and strengthening partnerships with governments, enterprise and customers to support the development and growth of regional aerospace infrastructure and capabilities.” Airbus Airbus’ commitment to cooperating with developing aerospace markets around the world was highlighted as the Middle East industry is playing a growing role in the company’s jetliners. This includes partnerships with two UAE-based companies - Strata, a Mubadala company and Tawazun Precision Industries (TPI), a Tawazun subsidiary. Strata is supplying components for Airbus’ A-330 wide-body aircraft and its 21st century flagship A-380 jetliner, while TPI is supplying parts for the A-320 and A-330. The Airbus Military A-400M airlifter was a first-time visitor here. Iraqi Airways Picks Bombardier Iraqi Airways signed a purchase agreement with Canadian manufacturer Bombardier which won orders and commitments for 27 of its Q-400 turboprops and CSeries mainliner jets. Among the biggest announcements was a purchase agreement from Iraqi Airways to acquire five CS300s, with options for another 11 valued at $1.26 billion. Low-cost Thai carrier Nok Air ordered two Q-400s and options for six totalling $258 million. “The extra capacity seating option will give the Q-400 NextGen aircraft an advantage of up to seven per cent fuel burn per seat and an overall operating seat cost advantage of up to 17 per cent compared to its closest turboprop competitor,” said Torbjorn Karlsson, Vice President Sales, Bombardier’s Asia-Pacific division. Middle Eastern aircraft leasing company Palma Holding also signed an agreement to purchase four Q-400s along with four options, a $282 million order. Abu Dhabi-based transport operator Abu Dhabi Aviation and Ivory Coast national carrier Air Côte d’Ivoire also signed agreements for two Q-400s each. ATR Debut in Saudi Arabia ATR, the world’s leading regional turboprop aircraft manufac-

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Show Report Dubai AirShow 2013 turer, displayed its new generation ATR-72-600 in the livery of Indonesia’s flag carrier Garuda. ATR had its first breakthrough in Saudi Arabia with Alpha Star Aviation Services becoming the first operator of ATR-72-600s. ATR and GECAS also signed an agreement for the acquisition of ten ATR-72-600s for a total value of $241 million. The agreement includes an order for five carriers and an option for another five. The Saudi orders will be delivered in 2014 while delivery to GECAS will begin in 2015. GE, RollsRoyce Sign Deals GE Aviation and joint ventures landed a record level of business orders totalling $40 billion, another trade record. Emirates airlines reached an $11 billion commitment to buy 150 Boeing 777X aircraft, containing 300 GE9X engines. The 777X twinengine aircraft and the GE9X engines are under development by Boeing and GE Aviation respectively and are expected to enter service by the end of this decade. Also included in the $40 billion orders for GE is $13 billion order for CFM International. Engine maker RollsRoyce Holdings PLC bagged a $5-billion order from Etihad Airways to provide engines and long-term support for 50 Airbus A350 XWB aircraft and a $300 million order to provide engines and support to the five Airbus A-330s of Qatar Airways. MEBAA – Its Humanitarian Face The Middle East Business Aviation Association (MEBAA) signed a deal with the United Nations World Food Programme to donate $20 with every MENA private flight. Ali Ahmed Al Naqbi, MEBAA’s founding Chairman, said, “Our new ‘Fly and Feed’ programme is a commitment from MEBAA to support this most worthy cause. The idea might have come out of this region, but it will become global, through our association with the International Business Aviation Council.” “Many people perceive our industry as a tool for High Networth Individuals. But this is not quite true. It is a tool for productivity and profitability. Our intention is to support the WFP, a great cause. With this, we want to change the perception of Business Aviation,” he said. Al Naqbi suggested the regional industry would be worth $1 billion by 2018 and have 1,375 registered business aircraft by 2020, up from around 500 today. At the Dubai Airshow, about one-third of the aircraft on display were Business Jets. The biggies such as Boeing and Airbus had their Business Jets too, while other players such as Beechcraft, Bell Helicopter, Bombardier, Cessna, Dassault, Embraer, Gulfstream, Jetcraft, Nextant made their presence felt.

manufacturers understand the needs of the region. Unlike the open announcements of airlines, the militaries in the Middle East remain more insular. However, there is no denying the fact that the Middle Easterners are among the top defence spenders. The Saudi Arabia has the fourth largest defence budget in the world, behind the US, China, and Russia. Valued at $52.9 billion in 2013, Saudi Arabia’s defence expenditure is placed seventh among the top military spenders and is expected to increase at a CAGR of 7.92 per cent to reach $77.3 billion by 2018. Other nations in the region are equipping themselves with the latest of defence equipment considering the geo-politics of the region. UK Prime Minister David Cameron was present at the show, presumably pitching for Eurofighter Typhoon. UK is competing with France for a potential 60-plane fighter jet deal with the UAE that is currently engaged in a procurement competition to replace its 43 ageing Dassault Mirage 2000s. Northrop Grumman Northrop Grumman Corporation highlighted a range of its global defence and security solutions, including airborne early warning and control systems, aerial surveillance and fire control radars. “Northrop Grumman is proud of its long trusted partnership with the UAE built over many years on a variety of programmes and capabilities,” said Douglas Raaberg, CEO Northrop Grumman, UAE.. The airborne early warning capabilities of its E-2D Advanced Hawkeye caught the attention of visitors.

GE Aviation and joint ventures landed a record level of business orders totalling $40 billion.

Embraer Embraer Executive Jets announced purchase agreement with Arab Wings for Lineage 1000. The aircraft will join the super mid-size Legacy 600 and large Legacy 650 already with Arab Wings operating out of Jordan.. Delivery is scheduled for early 2014. “We are honoured by the confidence Arab Wings has shown in Embraer by selecting the Lineage 1000 to expand its business aircraft fleet in the ultra-large category,” said Colin Steven, Vice President EMEA, Embraer Executive Jets. Military Aviation Though commercial aviation dominated the show, military aviation had its moments in the sun as the defence equipment

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Lockheed Martin Lockheed Martin was present at the airshow, hoping that it would hear from UAE with regard to the proposed sale of an additional 25 F-16E/F Block 60 Desert Falcon combat aircraft. US Defense Secretary Chuck Hagel had stated earlier that the additional F-16 Block 60 aircraft would be provided as part of a five-billion arms package.. The UAE Air Force and Air Defence currently operate 55 single-seat F-16E and 24 twin-seat F-16F platforms. AgustaWestland Italian company AgustaWestland bagged orders from Dubai Police for five AW-169s and from the Dubai Air Wing for a single VIP-configured AW-189. AgustaWestland displayed mock-ups of AW-169 and AW-189 helicopters. Dubai World Central Largest Airport The Airshow was held for the first time at the city’s new $32 million Al Maktoum International Airport which is expected to become the world’s largest airport on its completion in 2027. This year the show attracted over 1,000 exhibitors and over 60,000 trade visitors, an increase of seven per cent from 2009. Sharief Fahmy, CEO, F&E Aerospace, the organisers of the show said on the opening day, “Well it may have been yet another opening, but it certainly is not just another show. This has been an extraordinary opening morning for an event that has gone beyond expectations.” “If there was anyone left in the aerospace industry who had not recognised the undeniable importance of this region, this morning removed all doubt. We are in the centre of a region with the world’s fastest-growing aviation infrastructure, fastestgrowing airlines and a region where security commitments are in focus.” SP

ISSUE 12 • 2013

Military

Infrastructure

From Tactical to Strategic An important component of capability-based transformation is development of modern supporting infrastructure. A sound and secure infrastructure will enable the IAF to undertake its tasks in the most effective manner and thus, in the true sense, become a force multiplier in the days to come.

Heavy Lift Capability of The IAF: An IL-76 being offloaded at Leh airfield

Photograph: PIB

By Air Marshal (Retd) Raghu Rajan

The Indian Air Force (IAF) is currently embarked on transformation into a capability-based force from an adversary-centric one with focus shifting from the tactical to the strategic. As the primary agency to be called upon to respond to crisis situations in the region or in other areas of interest, in the years ahead, the IAF would have a critical role to play. Its peacetime missions would include disaster management, deployment of peacekeeping forces and possibly preventive military intervention to maintain peace and stability. Such contingencies require the capability of speedy power projection over long distances through adequate strategic airlift and long-range strike capability. An important component of capability-based transformation is development of modern supporting infrastructure. During the 1967 Arab-Israeli conflict, most of the 450 Arab aircraft lost were destroyed on the ground. This brought home the vulner-

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ability of aircraft parked in the open, a lesson put to good effect by the IAF in the Indo-Pak conflict of 1971. The IAF understood that infrastructure that preserves precious aircraft assets on the ground, in effect serves as a force multiplier. While the IAF has adopted comprehensive measures to enhance infrastructure in several areas of activity, there will always remain more to be done. Areas of infrastructure development that the IAF needs to focus on are intelligence, surveillance and reconnaissance (ISR), space, logistics and transportation, airfields, networked information grid, public works and defence industry. ISR and Space Infrastructure development in this regime would include from space-based, aircraft-based and UAV-based systems to human intelligence (HUMINT), exchange of information amongst the

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Military Infrastructure services and civil agencies, both external and internal, and finally a communication network that transfers data, video as well as voice to the user as close to real-time as possible. The other area is for all stakeholders, including civil agencies, to synergise their efforts with the services so that the final picture is as complete as possible. A fine example of this synergy is the US plan to deal with Osama bin Laden. Logistics and Transportation Logistics requires the IAF to record the consumption of a variety of items and forecast of its requirements. It also needs to arrange the transportation of aircraft, weapon systems, spares, rations, petrol, oil and lubricants, clothing and even armament stores to the user. The project Integrated Material Management On Line System (IMMOLS), the software for which was developed by the Tata Consultancy Services (TCS), has enabled Air HQ to take quick action to place orders, reduce inventories and respond faster to the requirement of users. What was needed was a networking of all logistics functions so that the current consumption of over 5,00,000 items of spares is known in real time. The IMMOLS solution has not only obviated the concerns of the IAF on stock outs, delays, dependencies on individuals and inaccurate communications, but has also brought in a host of beneﬁts like effective materials management, assets visibility for better utilisation of available resources, reduction in inventory levels and higher rates of serviceability of weapons systems and equipment. Transportation of equipment and spares is most cost effective when it is carried out by road. However, transportation by air is preferred in inhospitable terrain or when the requirement is urgent. There needs to be synergised effort by all the three services to use air effort. This can be best done when their representatives sit together, draw out plans in advance for use of air resources. Those responsible for logistic functions need to ensure that this is done. Airfield Infrastructure Early last decade, a plan to upgrade the airfield infrastructure was approved by the government and was launched the Modernisation of Airfield Infrastructure (MAFI) Project which includes extension/resurfacing of runways and installation of modern navigational aids. On March 16, 2011, the Ministry of Defence signed a `1,094-crore contract with Tata Power’s Strategic Electronics Division (Tata Power SED) for modernising 30 IAF airbases across the country. Tata Power SED has 42 months to execute this strategically vital contract. Upgradation of airfield infrastructure will enable military aircraft to operate by day and by night in all types of weather with high degree of safety. This would apply to airfields in the mountainous regions of the North and Northeast, as well as the island territories. These airfields will also be available for operations by civil aircraft. Upgradation of airfield infrastructure will undoubtedly enhance operational capability of the IAF manifold. Networked Information Grid Information superiority assumes great importance in today’s digitised battlefield. In network-centric warfare, the coverage extends from Air HQ to all commands and their bases. The communication bandwidth should be adequate to cater to data, video as well as voice transfer. While space communications is overarching, it is also susceptible to jamming or even destruction by adversaries. Hence there is a need to build in redundancies, by means of wireless and even underground optical fibre cable which will provide greater security. This network will permit

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exchange of voice, data and video between all commanders so that planning, execution and interaction can take place in realtime prior to and during the battle. The planning of an integrated air campaign or even a localised air effort can be made speedier and safer by software programmes. The execution and results can be monitored in real-time as was the case during the operations by Mirage fighters’ attack over Kargil. This channel of communication will also permit exchange of information relating to logistics, personnel, medical and finance. It is understood that there is a plan to have a defence communication network that will allow the three services and the Ministry of Defence to interact with each other during contingencies. It is hoped that effective interface will be built amongst the communication protocols of the three services for speedier and secure communication. Public Works Public works is as important as operations as it is the foundation on which a sound and secure operational task can progress. At present, public works is the responsibility of the Military Engineer Service (MES). The two areas that need attention are expertise in public works which does not exist within the IAF and hence the reliance on the MES for specialist advice. Base commanders need to be given financial powers to disburse funds for works services based on progress of projects. An alternative is to make a project into a turnkey one, something which has found favour with the government as in the case of the MAFI being executed by Tata Power SED as well as other companies. Owing to the possibility of exposure to enemy action, defence works are required to be more hardened than their civil equivalents. A good example is the location of North American Air Defence (NORAD), HQ, USA, which is located deep inside Cheyenne Mountains in the US. It is reported that Iran and China have also located their operations centres deep underground. There are lessons in this for the IAF. Defence Industrial Base This not only includes defence public sector undertakings (DPSUs), but also the Defence Research and Development Organisation (DRDO). The DPSUs, specifically the Hindustan Aeronautics Ltd (HAL), besides achieving good overhaul and repair capabilities, like the Chinese, needs to also reach high standards in designing aircraft. Competition needs to be introduced by pitting with the private sector and their management freed from the shackles of the government. This situation applies to other DPSUs too. The DRDO needs to be accountable and project management be entrusted to a senior serving officer placed directly under Air HQ. The Naval model that Air HQ needs to emulate is one where the Directorate of Warship Design, functions under Naval HQ. The IAF also needs to depute more officers of the technical branch to DRDO and to defence PSUs, so that there is a better understanding of each other. These measures will, with time, enable India to progress on indigenous development of aviation with greater vigour and commitment. Upgrade to world-class standard What needs to be done is to bring the IAF infrastructure up to world-class standard. Infrastructure has a long gestation period, needs advance and integrated planning not only within the IAF but amongst the three services and other civil agencies to ensure that the end result is cost-effective, with least duplication. A sound and secure infrastructure will enable the IAF to undertake its tasks in the most effective manner and thus, in the true sense, become a force multiplier in the days to come. SP

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Military

operations

IAF’s humanitarian missions The IAF has rendered yeoman service to the nation and disaster relief operations have been one of the most challenging and satisfying. But disaster relief operations can be tackled even more effectively with advance planning and preparations. Reconnaissance of routes, creation of helipads, accurate weather forecast, positioning of fuel and efficient communications, are critical to the success of these operations. Photograph: IAF

By Air Marshal (Retd) Raghu Rajan

ISSUE 12 • 2013

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Military operations IMD helped reduce casualties significantly. Large sections of the affected population were moved out of harm’s way on time because of timely and accurate warning by the IMD. Heavy rainfall in the catchment areas in Nepal, often tend to flood the states of UP, Bihar and West Bengal. Adequate liaison between the governments of Nepal and India will enable these states to receive advance warning of release of excess waters from the dams upstream by the Government of Nepal during periods of heavy rainfall. Lack of coordination in this regard resulted in heavy flooding of North Bihar in 2004. Reconnaissance In the event of a natural calamity, as a first step, immediate reconnaissance both from the air and on the ground will help ensure proper allocation and deployment of resources. Survey by the IAF and the Indian Army needs to be carried out in coordination with the civil administration. The Garud para commandos of the IAF and their equivalents in the Army and the Navy should be part of the initial reconnaissance teams. These teams can be air-dropped at different locations to determine the type of help required by the affected people. They can also identify helipads and even assess locations for the creation of new helipads. The aerial survey will also help designate routeing by helicopters and fixed-wing aircraft from their operating bases into and out of disaster affected areas. Unfortunately, in the Uttarakhand episode, even while the IAF helicopters arrived at Dehradun on June 17, 2013, no aerial reconnaissance was undertaken. An aerial survey early would have enabled the Uttarakhand government to allocate resources to areas needing urgent aid and ground units could have reached trouble spots earlier than they did. Updated maps of the area with obstacles such as high tension cables, microwave towers, buildings, etc clearly marked, must be made available to the aircrew and ground rescue teams. This task must be executed in coordination with the Air Force Commander responsible for the conduct of air operations. This requirement is particularly critical in the narrow valleys in the Himalayas. In action: Indian Air Force mi-17 in relief and rescue mission during operation rahat

From the earthquake in Gujarat in 2001 to floods in Assam in 2012 and floods in Leh in 2010 to the Tsunami that affected the south-eastern coast of the country in 2004, the 21st century has witnessed natural disasters affecting all corners of the country. While the Indian Air Force (IAF) has always been in the forefront in providing aid to the civil administration and provide succour to the affected populace, yet there remain areas that the IAF along with the civil administration needs to focus on to better exploit its capabilities to mitigate the damage and destruction caused by natural calamities. Advance Warning During the floods in Uttarakhand, Shashidhar Reddy, Vice Chairman of the National Disaster Response Force stated that the India Meteorological Department (IMD) needed to develop more precise observational and forecasting capability. Weather forecast worded as “fair to partly cloudy with chances of thunder showers” are rather vague and cover the entire range of weather phenomena. The forecast needs to be more specific to be useful. However, there has been some improvement since then as during the cyclonic storm, Phailin, across the Odisha and Andhra Pradesh coasts in October this year, accurate warnings by the

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Command, Control and Communication Command and control of all aerial activity must rest with the IAF, being the more experienced and possessing the largest resources. In Uttarakhand, besides the 45 plus helicopters of the IAF, there were around 15 from the Army and 30 from civil agencies. Though the Air Commander would be guided by the requirements set by the civil administration, he is the final authority to assess the viability of the sortie, for he is aware of the weather and limitations of aircraft/aircrew while operating in the area. One of the immediate requirements is to establish communication network in the disaster-affected areas. In the case of floods in the plains, roads and bridges will often be washed away and flat-bottom boats are ideally suited for rescue. In mountainous areas; evacuation of the injured, the elderly, women and children by helicopter, would be the preferred option. Restoring communications will become a priority in hilly areas, as it was in Uttarakhand. Along with communications, the need for reliable power supply would be vital for effective and speedy communication. Apart from batteries, generator sets would need to be heli-lifted to the required sites also to facilitate refuelling operations. Helicopters consume enormous quantities of fuel as these platforms would need refuelling at forward helipads. Innovative fuel transfer by the Super Hercules at Dharasu, a very short landing strip in Uttarakhand, resulted in transfer of some 8,000 liters of fuel to a bowser, thus allowing quick resumption of helicopter sorties there.

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Military operations

Photographs: PiB

Disaster relief ops: IAF Helicopter on Relief and Rescue mission in the flood affected Assam Region; (right) Relief packets being dropped from a plane in the aftermath of super cyclone Phailin, in Balasore, Odisha.

Aerial Operations During disaster relief operations, aircrew from diverse units of the IAF, Army, Navy and civilian agencies would constitute the task force. The Air Commander would need to be tactful to ensure willing cooperation by all. Apart from the need for good mutual understanding, there is the need to maintain flying discipline, stipulated timings for the sorties and to ensure that aircraft are not overloaded. Finally, there is the need to report changes in the sortie parameters or observations during the missions to help the Air Commander and the civil administration to execute tasks more efficiently. Better use of a mix of helicopters would make the accomplishment of the task more effective. Large helicopters such as the Mi-17 with larger rotors compared with the smaller Chetak/ Cheetahs require helipads of larger size to operate on. The Mi-26 helicopter, the largest and heaviest rotary-wing platform with the IAF, requires even a larger helipad. As landing may not always be feasible, dropping of food packets by Mi-17 on helipads in the affected areas is often a better option. In addition, this can be followed by spot-dropping of food by smaller helicopters like the Chetak/Cheetah to reach the stranded groups of people directly. Heli-dropped Para Commandos can be of immense help for evacuation of the injured/infirm/elderly as they can, if necessary, assist in winching them up to the helicopter. During disaster relief operations, the responsibility on the supervisors is indeed heavy. Helicopter pilots are often required to fly into uncharted areas and land on unprepared helipads. They are undoubtedly enthusiastic as missions to save lives are the most soul satisfying that a pilot can ever undertake! All the more reason for supervisors and aircrew to be careful, weigh the risks carefully and only then go ahead to undertake tasks. At that time, there may not be any precedence to follow and it all depends on the pilot’s skill, understanding of the terrain, the machine and the weather, all testing his professionalism and temperament to the utmost. The Air Commander trusts all aircrew to do their best. During the Uttarakhand operations, on one such day, the IAF flew 330 sorties evacuating 4,500 people, reported to be one of the largest such operation in the world ever undertaken. Disaster relief operations are indeed one of the most demanding and yet satisfying that a pilot would ever fly in his career. Fatigue is therefore another factor that the

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supervisor must be conscious of, for the sake of air safety. There are equally numerous unsung heroes behind the scene such as the medical staff, technical ground crew who are the first to prepare the aircraft and the last to secure them for the night, the air traffic control personnel and the loaders. Success of disaster relief operations hinges on their effort as well.

Media Management The media is one of the important factors in disaster relief operations that impacts public perception. The IAF’s sterling performances are often not known in real-time to the nation and it needs to be corrected. Timing is essential with the media or else it is not of much use as news. The normal practice is a media briefing at a senior level with no opportunity for those actually involved with the exercise to interact with journalists. The IAF needs to formally train officers in media management. The service needs to understand the need to avoid being insular. No attempt should be made to conceal any adverse event as there is no organisation without a flaw. Disaster relief operations too are unlikely to be flawless and hence the service should be prepared to provide a measured response to important occurrences. Any report critical of the service needs to be countered in an objective fashion. The media, when tackled with openness and confidence, in due course, will learn to convey the right picture of the service with a sense of pride. Need for Better Leadership Disaster relief operations can be tackled more effectively with advance planning and preparations. Reconnaissance of routes, creation of helipads, accurate weather forecast, positioning of fuel and efficient communications, are critical to the success of these operations. Control and coordination of diverse forces, all geared to give their best, demands leadership of a high quality. Finally, interaction with the media must be an intrinsic part of the disaster relief operations. The IAF has rendered yeoman service to the nation and disaster relief operations have been one of the most challenging and satisfying. The men and women of the IAF will always cherish memories of disaster relief operations undertaken by the service. SP

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Military

operations

iaf’s C-130J SUPER HERCULES in relief operations

Photograph: PIB

The C-130J Super Hercules is a four-engine turboprop tac- astated by unprecedented rain that caused massive landslides tical transport aircraft from Lockheed Martin. Apart from the and destruction of communication links. Villages were cut-off basic role as a troop carrier, it is capable of undertaking special and thousands of pilgrims were stranded. The IAF committed operations, in-flight refuelling and disaster relief operations. The three of its C-130Js Super Hercules aircraft in support of the aircraft is equipped with specialised equipment including For- disaster relief operations dubbed as “Operation Rahat”. These ward Looking Infra Red, Heads-Up-Display, night vision equip- aircraft delivered thousands of tonnes of relief material/supplies, ment and modern navigational aids. These enable the aircraft to provided 30,000 litres of fuel for helicopters operating in forward perform precision low-level flying, aerial delivery of troops and areas and airlifted sick and injured personnel in large numbers. cargo as also landing on semi-prepared or unprepared surfaces The C130-J landed at Dharasu, a landing strip near Uttarkashi in blackout conditions. The aircraft is also equipped with self- only 4,500 feet long. The operation demonstrated the flexibility protection devices to operate in hostile environment. and versatility of the Super Hercules aircraft in crisis situations. In February 2011, the Indian Air Force (IAF) Cyclone Phailin received its first of the six In the second week of Octoaircraft ordered in 2008 ber 2013, a Cyclone Phailin with the remaining five hit the coast of Odisha. The arriving by the end of the IAF pressed into service the year. The then CAS Air C-130 J Super Hercules to Chief Marshal P.V. Naik, support relief operations. described the C-130J as “the most potent and verTyphoon Haiyan satile aircraft joining the In mid-November 2013, IAF as it moved towards Philippines was hit by maintaining aerospace the largest storm to make dominance”. landfall in recorded history, The C-130 is not new to the Supertyphoon Haithe IAF. In November 1962 yan causing widespread in the wake of the Sinodestruction of homes, liveIndian conflict, C-130s of lihood and infrastructure. the USAF operated for a An IAF C-130J Super Herversatile aircraft: Indian Air force deployed C-130J few months alongside the cules delivered 15 tons of AirCraft for relief & rescue operation in Uttarakhand transport fleet of the IAF to relief supplies in Tacloban provide logistic support to City consisting of hygiene the forces deployed to confront the Chinese. Five decades later, chemicals, drinking water, tents, blankets, tarpaulins, water purithe C-130 is back in India in its new avatar, the C-130J Super fication equipment, ready-made meals and powder milk. Hercules, to equip No 77 Squadron of the IAF. With six more aircraft likely to join the IAF soon, the fleet will provide a cutting Exercise CASEVAC EAST 2013 edge to its special operations and airlift capability in more ways Conducted on November 29, 2013, the exercise was part of a than one. massive casualty evacuation (CASEVAC) drill mounted by the Since its induction in 2011, the Super Hercules with the IAF IAF for demonstration and benefit of various stakeholders have rendered yeomen service especially in disaster management. including army, para-military forces and disaster management response managers of Darjeeling, Jalpaiguri and Sikkim. An IAF Super Hercules aircraft was modified into an air ambuSikkim Earthquake On September 18, 2011, Sikkim, bordering Nepal, was struck lance configuration with ‘patient transfer unit’ and life saving by a devastating earthquake of a magnitude of 6.9 Mw. The IAF equipment with services of ‘critical care air transport team’ responded swiftly deploying two of its newly acquired C-130J for speedily airlifting 50 mock patients on stretchers from a Super Hercules aircraft to airlift within hours, the National Disas- simulated disaster zone in Jorhat, in upper Assam to Bagdogra ter Relief Force personnel as also relief material/ supplies from in North Bengal. The exercise showcased the IAF and Army’s Delhi to Bagdogra, an IAF airfield located close to Sikkim. The air- operational preparedness, cohesion and professional capabilicraft continued to support the disaster relief operations thereafter. ties besides synergising inter-dependencies among the various stakeholders in disaster situations. SP Uttarakhand Disaster In mid-June 2013, the Northern state of Uttarakhand was dev—By Air Marshal (Retd) B.K. Pandey

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ISSUE 12 • 2013

Civil

Interview

ready for action: A view of the simulators. the jv expects to have a total of six simulators in near future

forging partnership: Marc Parent, President and Chief Executive Officer of CAE and Rahul Bhatia, Group Managing Director of InterGlobe

We see very strong potential across the whole region

PhotographS: interglobe, anoop kamath

Industry projects that the largest growth in pilot demands would be in the AsiaPacific region with a requirement for 192,300 new pilots over the next 20 years. With demand surging in emerging markets, there certainly is an urgent need to put in place training institutions in India. Visualising the opportunity in this sector, InterGlobe Enterprises and CAE have joined hands in a 50:50 venture and set up one of the most modern training centres in the world in Greater Noida. At the press conference, post the opening ceremony, the Editor-in-Chief of SP’s Aviation, Jayant Baranwal raised several issues with regard to training and the airline industry with Group Managing Director of InterGlobe, Rahul Bhatia and the President and Chief Executive Officer of CAE, Marc Parent. Rahul Bhatia explained how the ‘religion’ in IndiGo would continue to keep airfares low. He also indicated that they were not shy of competition and were keen on expanding. By the end of 2014, IndiGo would be operating 85 aircraft and was of the view that it deserved more airplanes. 32

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Civil Interview high quality individuals who can fly safely. We are kind of exploring the setting up of training facility for aircraft maintenance engineers as well. SP’s: Have you spoken to the military of the kind of training you offer? Marc: We have 300 employees here and the head over here goes looking for both civil and military business. We are in discussions with the military with the consideration that there are going to be fresh acquisitions.

team spirit: (L-R) Rahul Bhatia, Marc Parent, Arun Mishra (DGCA) and Srinivasan Dwarakanath, ceo, airbus india

SP’s Aviation (SP’s): What are your plans for expansion, if any at this time? Do you see any impact on operations of IndiGo in view of the Tata-Air Asia and Tata-Singapore airline ventures coming up in India? Rahul Bhatia (Rahul): We have our work cut out for ourselves in IndiGo. The focus of our immediate plans for growth is to build on the airline. I would prefer not to talk about Tata-SIA, I don’t know the airline. At a certain level we are in competition. India is an enormously underserved market and deserves many players to come... There is room for everyone to survive and prosper. We very much welcome them to be part of this growing aviation market. SP’s: What is unique about this training centre compared to other facilities that exist in india? Marc Parent (Marc): Certainly it is modern. The simulators are the most advanced simulators we have ...5000 series of Airbus A-320. The architecture is the latest generation that takes into account lessons we have learned all around the world. It is the most modern among the 42 training centres we have. SP’s: Any bias towards Airbus-centric training? Marc: Airbus is certainly increasingly using the training centre for its customers. It is an Airbus authorised training centre that offers training to its customers in India. It is not Airbus centric....we have simulators of other major aircraft that represent the diversity of the fleets in India. SP’s: India is still in the nascent stage in terms of key infrastructure including the pool of quality pilots. What solutions do you plan to provide the operators/owners in India with? Rahul: The fact that we are putting up a world-class training centre with the potential of growing in scale to six possibly eight times is reflective of our effort to embrace the opportunity we see in the long run. We want to have cadet training to bring

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SP’s: As CAE President how would you compare the talents of military and commercial pilots? Who is more capable? Marc: The mission of civil and military aviatiors is very different but safety remains common. Training is to ensure that the pilot is ready to fly any aircraft – military bomber, fighter or helicopter effectively and safely. The same applies to commercial pilots. In India, the DGCA is working towards world-class standards of flying and safety in aviation. SP’s: Will the joint venture offer training to General Aviation aircraft in addition to large aircraft? Marc: The centre will offer training facility for Business Jets too. However, the Board would look at it as and when there is a case for Business Jets simulation training. SP’s: How do you compare training infrastructure in India with that in China? Marc: The good thing about this is that in terms of international standardisation and safety, there is very little difference. Just as India is growing in leaps and bounds, China is growing too... and both will not want to have any black mark when it comes to airline operations, training or flight safety. You will find very similar kind of training infrastructure. However, I must say this is a very modern facility here. SP’s: The very quality of pilot training is critical. How do you perceive that? Rahul: We work with regulators throughout the world. The training standards are getting standardised around the world to an increasing level of safety. We are working towards elevating safety standards in India too and the DGCA is very active in this area. At CAE, all we do is simulation and training. We spend ten per cent in R&D to ensure that we have the best training tools in the industry and are cost-effective. We have been selected by different OEMs to do simulators and they include Bombardier C-Series, ATR-72-600, ARJ-21 and COMAC. Our simulators are not just meant for training pilots but are also used for certifying aircraft. SP’s: What is your vision behind this partnership? Rahul: To work with the best in the business. SP For the complete interview and video, log on to: http://www.sps-aviation.com

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Civil

Training

WORLD-CLASS PILOT TRAINING IN INDIA Christened as CAE Simulation Training Private Limited (CSTPL), this centre is a 50:50 Joint Venture between InterGlobe Enterprises and CAE.

InterGlobe Enterprises and CAE recently inaugurated their ultra-modern pilot training facility in Greater Noida, National Capital Region (NCR). Christened as CAE Simulation Training Private Limited (CSTPL), this centre which is a 50:50 Joint Venture between InterGlobe Enterprises and CAE, will be India’s largest pilot training facility. An investment of over $ 25 million has already been made in setting up the facility and equipment. CAE and InterGlobe have also announced a long-term pilot training services agreement with GoAir, a low-fare domestic carrier. Starting in December 2013, GoAir’s A-320 pilots will train at the facility. Speaking at the opening ceremony of the centre, Rahul Bhatia, Managing Director, InterGlobe Enterprises said, “CAE are global leaders in civil aviation technology and we are proud to be associated with them. This training centre is a landmark in India’s aviation training facility. It is the largest such facility in India and is also a preferred Airbus training centre that can used by all the airlines not just in India but also those in neighbouring countries to train their pilots. Also, individual pilots can obtain flying licenses over here. Over time we will encourage military pilots and also explore starting courses for aircraft maintenance. We have two full flight simulators which can give real time scenario.”

Photograph: Interglobe

Future Plans Bhatia states, “By 2017, there are plans to introduce another four simulators. The Centre will be preferred for A-320 simulation to train fresh pilots as also for those who want to renew their pilot licenses and will be continuously upgraded. Once the six simulators are operational, about 5,000 pilots will be trained in a year. Presently, the centre has the capability to train 1,000 pilots annually. As there is a shortage of technicians, the needs of the industry have to be addressed as soon as possible.” Untapped Market “Despite the turbulence, India’s aviation market has grown exponentially. By 2019, India will be the third largest aviation market behind the US and China. By then, 420 million passengers will be flying and in the short term, it is estimated India will need 3,000 pilots. It is a large untapped market. India is a country of 1.2 billion which represents one aircraft for every three million people. In China and Russia, the aircraft penetration is three to four times more and we are not talking about mature markets such as US or Europe. This means India will need several thousand aircraft. Presently, the aviation sector’s contribution to

the GDP is 1.5 per cent and it provides 17 million jobs. There are challenges to its growth but these challenges are not insurmountable. It requires all stakeholders to work together to get the right kind of policies so as to have a sustainable growth story of India. Amidst challenges, there is a need to collaborate to grow.” CAE – A Dominant Player Marc Parent, President and Chief Executive Officer, CAE said, “This is a world class state-of-the-art training centre. I can tell you that some years ago when I came here, I could see cows grazing in the field... look at where we are today... it is a miracle. I am very proud of the modern structure we have put up in association with InterGlobe.” “It is such an understatement to state that India is a dynamic country; it is one of the fastest growing civil aviation markets. The Indian commercial airline fleet has doubled in the last decade. There are 500 aircraft on order and this translates to a requirement of 3,000 pilots over the next five years... this is just a fraction of the potential India has.” Parent continues, “CAE has infrastructure capabilities to support traffic growth here. Today 75 per cent of civil simulators in this country are built by CAE. In 2008, the first civil aviation training centre was established in Bangalore and this produced 1,500 pilots last year. We also operate a training centre with Hindustan Aeronautics Limited (HAL) and in partnership with the Government of India, run ab initio training in Gondia and Rae Bareli. The six simulator centre will provide training to airline pilots with facilities such wet and dry training, besides jet indoctrination training.”

Rahul Bhatia, Managing Director, InterGlobe Enterprises, and Marc Parent, President and Chief Executive Officer, CAE, inside the simulator

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DGCA Support Arun Mishra, Director General of Civil Aviation (DGCA) praised the endeavour stating that it would add a lot to the safety of civil aviation in India. He complimented InterGlobe and IndiGo for changing the pace of aviation in India. “IndiGo has pushed up the aviation market with low fares and on time performance. While we have huge potential but what worries me is that while we are getting good airports, we are lacking in the development of manpower, the next generation of aviation professionals.” Regarding standalone training centres, he said there were certain niggling issues, but added that the DGCA was in the process of formulating rules and regulations to evolve the best international practices. SP

—By R. Chandrakanth

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hall of fame The sight of an air ambulance extracting critically ill patients from conflict zones and disaster areas for lifesaving treatment is common in our day. It was not always so. What is perhaps one of the most important advances in military medicine of the 20th century began due to the visionary efforts of Marie Marvingt. She was an outstanding pilot and balloonist, a world-famous athlete, a perceptive inventor and a caring nurse. She was only the third woman in the world to be awarded a pilot’s licence and set some of the first aviation records for women. She briefly fought in the First World War both as a soldier and a pilot. She has rightly been called one of the most interesting women of the last century. Marie Félicie Elisabeth Marvingt was born on February 20, 1875, in Aurillac, Cantal, in France. She gained global fame by winning numerous prizes in swimming, cycling, gymnastics, fencing, shooting, ski jumping, speed skating and other sporting activities. She won a rifle shooting competition against an entire army division. In 1908, she tried to enter the Tour de France, the world’s most gruelling cycle race, but was not accepted. The organisers may have felt justified in excluding a female because only 36 of the 114 males who participated that year could complete the race. But Marie was not one to accept defeat and cycled over the entire course alone. She was the first woman to climb most of the peaks in the French and Swiss Alps. In March 1910, the French Académie des Sports awarded her a Gold Medal “for all sports”, the only multi-disciplinary medal they ever awarded. Her aviation feats were no less impressive. In September 1909, she made her first solo flight in a balloon. On October 26, 1909, she became the first woman to pilot a balloon across the English Channel from Europe to England. The following year, she gained her balloon pilot’s certificate. But fixedwing aviation was taking the world by storm and Marie did not wish to be left behind. She took flying lessons from Hubert Latham in an Antoinette monoplane, becoming one of the first women to solo in it. The Aero Club of France awarded her a pilot’s licence in November 1910.

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When World War I broke, women were not accepted in the French Army. But Marie disguised herself as a man and served on the frontlines. However, after about three weeks her ruse was discovered and she was sent home. In 1915, she flew a few missions over German-held territory as a volunteer pilot, including the aerial bombing of a German airbase in Metz. She thus probably became the first woman in

Marie Marvingt (1875-1963) Being a skilled pilot, a qualified surgical nurse and having witnessed the plight of the war wounded first-hand, she merely had to put the three elements together to hit upon the idea of an air ambulance service. It became her crowning achievement. She formulated courses for the nurses of the air and in 1935 became the world’s first certified flight nurse.

the world to fly combat missions and was awarded the Croix de Guerre (Military Cross) for her feat. Between the two World Wars, she worked as a journalist, war correspondent and medical officer with French Forces in North Africa.

Marie Marvingt’s brief foray into combat did not blind her to aviation’s potential for peace. “If we have given wings to the world, we have the obligation to ensure that they are the wings of the dove of peace,” she once said. Being a skilled pilot, a qualified surgical nurse and having witnessed the plight of the war wounded first-hand, she merely had to put the three elements together to hit upon the idea of an air ambulance service. It became her crowning achievement. She formulated courses for the nurses of the air and in 1935 became the world’s first certified flight nurse. This and similar schemes caught the imagination of the young women of France and by the start of World War II there was a sea change in the quality of care provided to injured soldiers. She also established a convalescent centre for wounded aviators and invented a new type of surgical suture. Later she worked for the establishment of air ambulance services throughout the world. Marie Marvingt died on December 14, 1963. Of all the women who received official awards in the history of France, her tally of 34 medals and decorations stands out because they were conferred in the most varied fields. She even wrote fiction and prize-winning poetry. Although she was named “La fiancée du danger” (the fiancée of danger), a name she espoused for her autobiography published in 1948, she was essentially a safe flyer, justly proud of her record of never having been involved in a major crash for her first 900 flights. It was a feat unequalled at the time. She had the joy of flying in her, saying: “This new sport is comparable to no other. It is, in my opinion, one of the most intoxicating forms of sport, and will, I am sure, become one of the most popular. Many of us will perish before then, but that prospect will not dismay the braver spirits. In devoting themselves to the new cause, those who have the true aviator’s soul will find in their struggle with the atmosphere, a rich compensation for the risks they face. It is so delicious to fly like a bird!” SP

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— Group Captain (Retd) Joseph Noronha, Goa

News Digest MILITARY QuickRoundUp

ASIA-PACIFIC President’s Standards Awarded to IAF’s 220 and 32 Squadrons

AgustaWestland

Turkey remains fully committed to a co-production program with Italian-British AgustaWestland for scores of T-129 attack helicopters, despite “minor” technical snags that have delayed acceptance tests for an initial batch of nine choppers. AgustaWestland has announced that the Dubai Police will operate five AW-169 light intermediate helicopters to perform a range of missions including law enforcement, emergency medical services and VIP transport.

Airbus

Air Algérie has signed a Memorandum of Understanding for three A-330-200 passenger aircraft as part of the carrier’s continued growth plans during the Dubai Air Show 2013. Air Algérie has already ordered a total of five Airbus A-330, which have all been delivered to date.

ANTONOV

AN−158 regional jet has completed tests on high− level runways of Latin America. The ground and flight tests confirming possibility of operation of the AN−158 family in conditions of high mountains with basing on runways situated on 4000 metres above sea level were performed within the limits of this program in full volume.

ATK

ATK, a leader in weaponized, special-mission aircraft, has announced that it has completed the first flight test for the Kingdom of Jordan’s two CASA-235 light gunship aircraft. ATK was awarded a contract by Jordan to modify two of the country’s CASA-235 transport aircraft into highly-capable and cost-effective special mission aircraft.

Austria

The Defense Security Cooperation Agency has notified Congress of a possible Foreign Military Sale to Austria for three UH-60M Black Hawk Helicopters in Total Package Approach and associated equipment, parts, training and logistical support for an estimated cost of $137 million.

Boeing

The first of Boeing RC-135V/W Rivet Joint signals intelligence aircraft has been delivered to UKs MOD ahead of its entry into service with the RAF in 2014.The aircraft will form part of project Airseeker, which will provide the UK with a world class capability able to provide real-time on-scene intelligence, surveillance and analysis for forces in the air and on the ground.

At an impressive Ceremonial Parade at Air Force Station Halwara on November 20, 2013, the President of India, Pranab Mukherjee presented Standards to two of the IAF’s frontline fighter squadrons - 220 Squadron and 32 Squadron. The Governor of Punjab, Shivraj Patil, Chief Minister of Punjab, Prakash Singh Badal, Chairman Chiefs of Staff Committee (COSC) and Chief of the Air Staff, Air Chief Marshal NAK Browne, AOC-in-C, Western Air Command, Air Marshal SS Soman were also present besides a host of other serving and civilian dignitaries. There was a spectacular fly-past primarily consisting of the aircraft flown by the units being awarded the President’s Standards. The President’s Standard is the highest and most prestigious honour bestowed upon any unit of the Armed Forces in recognition of its invaluable contribution to national security both during war and peace. 220 Squadron has a rich history spanning over five decades flying fighter aircraft ranging from the Vampire to the currently held state-of-the-art SU-30 MKIs. Similarly 32 Squadron has a glorious history having operated fighter aircraft from the Mystere IV to the currently held Bison.

Air Chief Visits Ambala Airbase as it Completes 75 Glorious Years

Bombardier

Gangotri to Gangasagar

Air Marshal HB Rajaram flagged in the ‘IAF Aqua Scullers” on the successful completion of their white water rafting expedition on the Ganges from Gangotri (at an altitude of 3,049 m) to Ganga Sagar in West Bengal. River Ganges is known to be one of the most challenging rivers in the world for White Water rafting. The Himalayan portion of the river from Gangotri (at 3,049 m) to Haridwar (at 295 m) is considered one of the most treacherous white water stretches in the world, with forceful Grade IV & V rapids. This and other challenges were overcome by the “IAF Aqua Scullers” in a record time of 16 days. This expedition is the first and the most unique of its kind ever undertaken by the Indian Armed Forces. During the expedition, the rafting team “IAF Aqua Scullers” lead by Wg Cdr Paramvir Singh broke many records like longest rafting expedition ever in India covering over 3000 Km, shortest duration ever taken to raft down the entire length of Ganga and many more.

China’s J-10 Modernisation

Bombardier Aerospace today announced that Iraqi Airways, the national carrier of Iraq, has signed a firm purchase agreement to acquire five CS300 mainline jetliners. The agreement, which also includes options on 11 CS300 aircraft, follows a letter of intent to purchase the aircraft that was announced by Bombardier on November 19

oldest airbase of the IAF as it completed 75 glorious years on November 21, 2013. The Platinum Jubilee Celebrations on the occasion were attended by a host of officers who have been associated with the station including the Marshal of the Air Force Arjan Singh, who had once commanded the station. The Air Chief’s association with Ambala airbase dates back to the times when as a Flight Lieutenant , he was a part of the initial ‘Core’ team that flew in Jaguars to India to raise the very first Jaguar Squadron at Ambala. Established on April 01, 1938 with a few officers and a defined role of training in Army/Air Cooperation, Air Force Station Ambala has been closely associated with the growth of the IAF.

The Chairman Chiefs of Staff Committee and Chief of the Air Staff Air Chief Marshal NAK Browne visited Ambala, the

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On November 6, 2013, Zhang Jigao, Deputy Chief Designer of the J-10 fighter said that the overall performance of the J-10 will be comprehensively improved in areas such as aerodynamic layout, mission system and the approach to

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News Digest maintenance. Over the last five five years, several images of the test J-10B have appeared online, attracting widespread attention from netizens, military enthusiasts and even foreign media. US military expert Richard Fisher recently pointed out that the J-10B is a so-called “four and a half” generation fighter equipped with modern airborne technology and an advanced radar system, which is about to be delivered to the PLA Air Force. He pointed out that single combat is rare in modern warfare and that the majority of cases now involve system combat and network operations, as the combat capabilities of a fighter depend on many factors.

Assistance to Philippines in the Aftermath of Typhoon Haiyan

In a display of solidarity with the inhabitants of hurricane-ravaged Philippines, Government of India mounted a speedy joint services response coordinated by HQ Integrated Defence Staff to provide assistance to the beleaguered nation. The relief package comprising medicines, hygiene chemicals, tentage, blankets, tarpaulins and ready-to-eat meals were provided ex Armed Forces stock and airlifted by an Indian Air Force C-130 Super Hercules aircraft to Tacloban which was the epicentre of the devastating natural calamity. Similar aid was provided to Philippines by India in 2006 as well.

J-15 Ship Borne Aircraft’s Performance Modifications

On November 6, 2013, Wang Yongqing, Chief Designer of J-15 revealed that special design features have been applied to the J-15 in accordance with its deployment on aircraft carriers in order to achieve the special requirements of ship borne aircraft. J-15 ship borne aircraft series No 555 was a very important aircraft although it had attracted limited media attention. The J-15 is China’s first generation ship borne fighter developed from the J-11. Particular attention has been paid to the special requirements of ship borne aircraft in addition to the guarantee of its combat capabilities. As China’s first ship borne fighter, the J-15

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has excellent sea-air combat capability and is equipped with a variety of air-toair, air-to-ground and air-to-sea attack weapons. Its comprehensive combat capability has reached an internationally advanced level which reflects the extraordinary technical achievements of China’s aviation industry.

IAF’s First Supersonic Jet to be Aviation Folklore

The deafening roar of the MikoyanGurevich Mig-21 FL afterburner, an iconic delta-wing fighter aircraft that heralded the ‘supersonic era’ in the IAF will no longer be heard as on December 11, 2013, it flew into the annals of military aviation history. Four Mig-21 FL aircraft flown by pilots from the Operational Conversion Unit , last abode of the venerable jets, flew a ‘box formation’ as Chief of the Air Staff, Air Chief Marshal NAK Browne took the salute at the ceremonial parade to bid them adieu. In the first ever supersonic air combat that ensued over the sub-continent in 1971, an Indian Mig-21 FL claimed a PAF F-104 Starfighter with its internal twinbarreled guns alone. By end of the hostilities the IAF Mig-21s had claimed four Pakistani F-104s, two F-6s, one F-86 Sabre and a Lockheed C-130 Hercules. The attack with pin-point accuracy on the Governor’s House at Dhaka by IAF pilots flying the Mig-21s, proved to be a turning point in the war forcing the adversary to negotiate an eventual surrender.

AMERICAS Guardian Angel Air-Droppable Rescue Vehicles (GAARV)

QuickRoundUp

during the Dubai Airshow. Based on the list price for the CS300 aircraft, the firm order is valued at approximately $387 million and could increase to $1.26 billion if the additional option of 11 aircraft is taken. Bombardier Aerospace has announced that Iraqi Airways has signed a letter of intent (LOI) to acquire five CS300 mainline jetliners. The LOI includes options on 11 CS300 aircraft. Based on CS300 airliner list price, a firm order would be valued at approximately $387 million.

Brazilian Air Force

The Brazilian Air Force has taken delivery of the seventh P-3AM Orion patrol aircraft which was handed over on Tuesday Nov ember 5 in Seville, Spain.

CFM

FlyDubai has announced that it has signed an agreement with CFM International to purchase up to 200 LEAP-1B engines to power Boeing 737 MAX aircraft. The airline has also ordered 22 CFM56-7BE engines to power up to an additional 11 Boeing Next-Generation 737-800 aircraft. Deutsche Lufthansa has selected CFM International’s CFM56-5B engine to power 30 firm Airbus A-320ceo (current engine option) aircraft. The agreement is valued at more than $610 million at list price. The contract for the aircraft were announced in June, this year.

China

A video showing a taxiing run of one of China’s home-made “Sharp Sword” prototype attack UAV has recently been made available online, quickly attracting the attention of large numbers of netizens. Interviewed by a media reporter, military expert Meng Xiangqing said that the news of a “Sharp Sword” maiden flight still needs to be confirmed officially.

The 88th Test and Evaluations Squadron received the first set of GAARV in the US Air Force’s inventory. The GAARV is a multi-purpose utility vehicle intended to help combat search and rescue teams retrieve individuals that have been isolated and can expand the ability to quickly reach further into the battle space to provide a more mobile rescue capability. “The GAARV may provide capability enhancements for maneuverability, force protection and technical rescue capabilities within the ground domain,” said a US Air Force officer.

EADS

EUROPE

Eurofighter

Operational Trials on the A400M

The A400M Atlas, the French air force’s new transport aircraft, has carried out operational trials for loading and unloading equipment at Orange air base.

The European Aeronautic Defense and Space Company has proposed that South Korea purchase a combination of 40 Eurofighter Typhoons and 20 F-35s for its next-generation fighter procurement project. The rationale given was that a split procurement will offer a better blend of capabilities for peninsular security conditions and also ensure an earlier fixed delivery timetable, starting from 2017.

Eurocopter

Brazil’s Helibras completed the first flight of an EC-725 helicopter completely produced by the company in Brazil. The flight took place two months earlier than the deadline scheduled by the EC725 project. The new AESA radar for the Eurofighter Typhoon is entering the system integration phase. During a four-national program review at Cassidian’s Ulm site the test and integration results of the “Captor-E” Antenna subsystem were successfully presented to the representatives of the four Eurofighter core nations UK, Italy, Spain and Germany.

ISSUE 12 • 2013

News Digest QuickRoundUp

The 400th Eurofighter Typhoon has been delivered to the Programme’s worldwide customer base. The German Air Force took delivery of the 400th aircraft on December 4, 2013 during special ceremony at Cassidian’s Military Air Systems Center in Manching, Southern Germany.

HAL

The indigenously-developed India’s Light Combat Aircraft Tejas has undertaken 2,400 sorties to meet the requirements of the IAF, which is set to induct the aircraft on December 20.

Kuwait

The Defense Security Cooperation Agency has notified Congress of a possible Foreign Military Sale to the Government of Kuwait for F/A-18 C/D follow-on contractor engineering technical services and associated equipment, parts, and logistical support for an estimated cost of $150 million.

Northrop Grumman

Northrop Grumman Corporation has been selected by the Royal Thai Air Force to supply additional AN/TPS-78 air defense and surveillance radar systems. Under the terms of the contract, Northrop Grumman will begin supplying equipment to the Royal Thai Air Force in 2015 and also provide training, spares and logistics support.

RAF

The RAF has begun training on the Puma Mk2 helicopter following a £260 million upgrade programme which includes a new engine which give them 35% more power and improved fuel efficiency to allow them to fly faster and twice as far as the Puma Mk1. They also have state of the art digitised glass cockpits and upgraded LCD instruments.

Republic of Korea

The Defense Security Cooperation Agency has notified Congress of a possible Foreign Military Sale to the Republic of Korea for Phase 1 upgrades of 134 KF-16C/D Block 52 aircraft and associated equipment, parts, training and logistical support for an estimated cost of $200 million.

Rolls-Royce

Rolls-Royce has won a $300 million order from Qatar Airways for Trent 700 engines, with long-term TotalCare support, to power five Airbus A-330 freighter aircraft. The order for five Airbus A-330 Freighters and eight options was announced by the airline at the Dubai Air Show.

Russia

The Proton launch vehicle has successfully placed a satellite into orbit from the Baikonur Cosmodrome in Kazakhstan for the Russian Ministry of Defense. The satellite was passed over to the Aerospace Defense Forces for subsequent control. This was the 8th launch of the Proton vehicle this year and the 391st overall since its first flight in 1965. The Proton Breeze M vehicle is manufactured

This has enabled the airfield to check compatibility of several types of military equipment, including LAV light armored vehicle-type (long chassis version with a mass of four tons) belonging to the 1st Foreign Cavalry Regiment, also stationed in Orange. The tests also validated the full accessibility of the runway at Orange, both in terms of space constraints, resistance to the aircraft’s weight, as well as access to taxiways. The French air force was the first to receive the A400M Atlas in the summer of 2013. The A400M is a tactical military transport aircraft with a capability to support strategic missions.

CIVIL AVIATION ASIA-PACIFIC Major Gains for UAE Companies during the Dubai Airshow

During the airshow at Dubai held from 17 to 21 November 2013, major gains for companies were4 as under : • UAE ‘s Mubadala secured total of over AED 43 billion ($ 11.8 billion) of deals for the UAE’s aerospace and defense sector. • Aero structures and engine parts manufacturing work packages secured and composite materials production strategy driven forward through wideranging agreements worth AED 22 billion ($ 6 billion) with global OEMs. • AMMROC extends support for the UAE Armed Forces with AED 21.14 billion ($ 5.8 billion) five-year Performance Based Logistics agreement. • Agreements will accelerate the development of the Nibras Al Ain Aerospace Park.

INDUSTRY ASIA-PACIFIC Order from Boeing for Rossell India Limited

Rossell India has received an order from Boeing for wire harness manufacturing for the company’s F/A-18 Super Hornet fighter jet. “We are proud of the confidence shown in our company strategy by a customer like Boeing,” said Rishab Gupta, Executive Vice President of Rossell India Limited. “Right from the time we started our first interactions with Boeing, we were unwavering on the company strategy – and that was to offer a strong value proposition for long-term partnerships, built on proactive investments, global standard infrastructure, a processdriven culture and a high calibre staff.”

ISSUE 12 • 2013

Show Calendar 10-12 December Gulf Defense & Aerospace 2013 Kuwait International Fair, Kuwait www.gulfdefense.com 22-24 January, 2014 International Military Helicopter 2014 Hotel Russell, London, UK www.militaryhelicopterevent.com 14-15 January, 2014 Army Aviation Symposium and Exposition Crystal Gateway Marriott Hotel, Arlington, VA, USA www.ausameetings.org/aviation 16-18 January, 2014 BAHRAIN INTERNATIONAL AIRSHOW Sakhir Air Base, Bahrain www.bahraininternationalairshow.com 30 January, 2014 BUSINESS AVIATION REGIONAL FORUM Signature Flight Support, Boca Raton Airport, Boca Raton, FL., USA www.nbaa.org/events/forums/20140130 24-27 February 2014 Heli Expo 2014 Anaheim Convention Center, Anaheim, CA, USA www.rotor.com/Events/HELIEXPO2014. aspx “From offering our customers stateof-the-art infrastructure to having a highly committed, capable and capacious workforce, to establishing optimal and efficient processes, to safeguarding precious intellectual property, our vision is to offer foreign customers a similar experience to home ground and one which is seamless and fully integrated,” added Gupta. Rossell’s aerospace division concentrates on three key competencies of interest to foreign original equipment manufacturers (OEMs)—automated test equipment (ATEs), wire harness engineering and loom fabrication and avionic product support services. The company has also signed memorandum of understandings (MoUs) with many other foreign OEMs in the aerospace domain and continues to see increased traction in its competency areas.

Global Helicopter Market Forecast

The global helicopter market is all set for rapid growth as transitioning economies from Central Asia, the Middle East,

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News Digest appointments

Bombardier Aerospace

Bombardier Aerospace announced the appointment of Raymond Jones as Senior Vice President, Sales, Marketing and Asset Management, Bombardier Commercial Aircraft with effect from December 03, 2013.

Safran

In October this year, Safran named Jean-Michel Hillion as Corporate Senior Vice President, Boeing Programs. Effective November 01, 2013, Didier Nicoud has been named Engineering Vice President for Aircelle (Safran).

Northrop Grumman

In November 2013, Northrop Grumman Corporation announced the appointment of Catherine Gridley Sector Vice President of Business Development for its Technical Services sector. Northrop Grumman Corporation also appointed Andrea Yeiser Vice President of Engineering, Manufacturing and Logistics for the company’s Rolling Meadows, Ill.-based Land and Self Protection Systems Division.

Israel Aerospace Industries

On December 02, 2013, the Board of Directors, Israel Aerospace Indus-

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tries, has approved Colonel (Retired) Shaul Shahar’s nomination as Corporate Vice President and General Manager of IAI’s Military Aircraft Group.

by Khrunichev State Research and Space Production Center of Moscow.

General Dynamics/Gulfstream Aerospace Corporation

Selex ES

On December 3, 2013, the Selex ES Falco Tactical Unmanned Aerial System (UAS) started its operation of supporting the United Nation peacekeeping operations in the Democratic Republic of Congo . As announced earlier in year, Selex ES was award a 3 year contract for the Falco UAS to provide information gathering and surveillance capability to the UN operations along the Rwandan and Ugandan borders.

Effective January 01, 2014, the Board of Directors of General Dynamics has elected Jason W. Aiken to be Senior Vice President and Chief Financial Officer of Gulfstream Aerospace Corp, a wholly owned subsidiary of General Dynamics. In November this year, Gulfstream Aerospace Corp named Lor Izzard Director, Sales Support and Technical Marketing, Gulfstream. Earlier on in October 2013,Gulfstream Aerospace Corp expanded the role of commercial sales representative Prestige Jet to handle Gulfstream aircraft transactions in France as well as Italy and Switzerland.

Sikorsky

Sikorsky Aircraft Corp has been awarded a $77,524,748 modification to a firm-fixed-price contract to exercise an option for the procurement of seven Army UH-60M Black Hawk helicopters in accordance with contract clause H-23, “Option for Increased Quantity of Helicopters.” During Fiscal 2013 funds to the amount of $77,524,748 have been obligated. Sikorsky Aircraft Corporation has announced that CHC Helicopter has signed a multi-year contract to purchase nine S-92 helicopters, with options to acquire up to 15 more, for use in transporting offshore oil workers and for possible search and rescue operations.

Switzerland

Boeing

The Defense Security Cooperation Agency has notified Congress of a possible Foreign Military Sale to the Government of Switzerland for F/A-18 Hornet follow-on support and associated equipment, parts, training and logistical support for an estimated cost of $200 million.

Boeing has named Ted Colbert Chief Information Officer and Vice President of the company’s Information Technology organization.

UK Latin America and Asia-Pacific continue increasing their fleet size and extending their industrial strength. Salient features of the analysis by Frost & Sullivan, “Global Helicopters Market Assessment,” are: • The market earned revenues of $31.32 billion in 2012 and estimates this to reach $44.27 billion in 2022. • More than 11,170 military platforms are expected to enter into service, peaking in 2018. • While the next generation of rotorcraft is still in development, Western military and civil end users are opting to finance life-extension programmes. “Upgrades and retrofits could be the way forward for the global helicopters market in the next 10 years,” said Frost & Sullivan Aerospace and Defense Research Analyst Alix Leboulanger.

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SPACE ASIA-PACIFIC Arianespace to Launch GSAT 15 and GSAT 16 Satellites for India

The Indian Space Research Organisation (ISRO) has chosen Arianespace to launch its GSAT 15 and GSAT 16 telecommunications satellites from the Ariane 5 launch vehicles at the Guiana Space Center, Europe’s Spaceport in Kourou, French Guiana. The GSAT 15 and GSAT 16 satellites, designed, assembled and integrated by ISRO, will each weigh around 3,150 kg at launch. They will provide C and Ku-band telecommunications services including VSAT transmissions, TV broadcasting and emergency communications. •

UKs Ministry of Defence is investing £35 million (about $56.2 million) to sustain the RAF’s stockpile of Brimstone air to surface missiles. A contract with British defence firm MBDA will guarantee the supply of the weapons for the next 5 years. Britain said that it had abandoned plans to engage a private contractor to run a multi-billion dollar defence procurement programme plagued by spending overshoots, delays and technical problems. Britain’s Conservative-led government had earlier this year trumpeted a reform of the way it buys equipment for its armed forces to help rein in public spending.

US Air Force

Boeing and Saab AB have signed a Joint Development Agreement (JDA) to jointly develop and build a new advanced, cost-efficient T-X Family of Systems training solution for the upcoming competition to replace the US Air Force’s aging T-38 aircrew training system. The JDA, with Boeing as the prime contractor and Saab AB as primary partner, covers areas including design, development, production, support, sales and marketing.

ISSUE 12 • 2013

Last word

illustration: anoop kamath

No hope sans Privatisation Advocates of privatisation of the national carrier hold the view Speaking at the India Economic Conclave organised by Economic Times recently, Ajit Singh, the Minister of Civil Avia- that the examples listed above are mere exceptions and the adage tion made public his view that the government ought not to be goes, exceptions do not prove the rule. The need to find a solution in the services industry, especially in one that involves operat- to the financial woes of the carrier, however, is becoming increasing an airline. “As this industry is capital intensive and fiercely ingly urgent. What is apparent at this point in time is that so long competitive, it requires bold and speedy decision-making, attri- as the airline is run by the government, the possibility of the airbutes that the Indian Government is bereft of,” said the Minis- line being turned around is not within the realms of possibility. The airline is currently burdened with accumulated debt of ter. However, with this statement by the Minister of Civil Aviation, debate on the need to privatise the national carrier has over `45,000 crore on account of bulk purchase of a large number of airliners a few years ago, a decision that is being seen not acquired fresh momentum. Beginning as a private airline for international operations, Air only as financially unsound but also somewhat bizarre. The airIndia International was set up by the House of Tatas soon after line continues to incur operating losses to the tune of `11 crore independence. It was nationalised in 1953 and the national car- a day and needs constant financial support by the government rier of today is an amalgamation in 2007 of the international and which comes by way of infusion of tax payer’s money. During domestic segments of the government-owned airline industry. the last four years, the government has sunk `16,300 crore to Before nationalisation, as one of the finest airlines in the world, Air sustain the carrier and has sanctioned another `30,000 crore India was the pride of the nation. However, nationalisation took its of doles during the next seven years. Another `20,000 crore is toll as afflicted by the malaise of the public sector, the rot set in and needed for sovereign guarantees for short-term loans availed decline of the carrier began. By the beginning of the last decade, by the airline. Given the uncertain and questionable state of symptoms of financial distress were beginning to be manifest. the national economy, it is not clear how and as to whether the Before the merger in 2007, the combined loss of both the domestic government will be able to find the resources to sustain the lifeand international carriers was `770 crore, rising nearly tenfold to line of the ailing carrier. In any case, the government cannot be `7,200 crore by March 2009. This was followed by restructuring expected to continue to fund the carrier indefinitely. plans which are yet to produce any tangible results. Meanwhile, the carrier continues to be afflicted with the While there is clearly usual ills common to the pubstrong support for privatisation lic sector such as a bloated including from international workforce, low productivity level heavyweights like Ratan primarily on account of inefTata and Montek Singh Ahluficient and poor work culture, walia, there is another segment labour dispute, strikes, archaic of opinion that does not believe management practices, tardy that privatising Air India will decision-making, bureaunecessarily solve the serious cratic incompetence, blatant problems that currently plague exploitation by all and sundry, the airline. After all, airlines in political interference, all these the private sector established aggravated by an indifferent and run by reputed and compolitical leadership. petent entities have failed to With two foreign airlines survive in the hostile domain of repute, AirAsia and Sinof the airline industry in India. gapore Airlines expected to The list includes Kingfisher emerge on the scene through Airlines, Air Sahara, Eastjoint ventures with an equally West, Modiluft and Damania reputed Indian partner, the Airways. SpiceJet and GoAir House of Tatas, competition are also reported to be reeling for Air India will only increase, under heavy losses. PanAm, a making a turnaround even leading carrier in the US went more difficult. bankrupt two decades ago. On Given the evolving scenario With two foreign airlines of repute, AirAsia and the other hand, some governin the Indian airline industry, Singapore Airlines expected to emerge on the ment-owned airlines such as it should be abundantly clear Singapore Airlines have been that there is no hope for Air scene through joint ventures with an equally eminently successful. Success India without privatisation. SP reputed Indian partner—the House of Tatas— of an airline is therefore not competition for Air India will only increase contingent on the pattern of —By Air Marshal (Retd) ownership alone. B.K. Pandey making a turnaround even more difficult

ISSUE 12 • 2013

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