SP's Aviation March 2010 by SP Guide Publications Pvt Ltd

COMPETITORS ARE ALREADY FRUSTRATED BY YOUR VISION.

INFURIATE THEM. Make no mistake, in these economic times, there will be winners and there will be losers. And in the zero-sum game of corporate survival, it goes without saying cavalier excess will no longer be tolerated. But neither will conventional thinking. The victors in this economy will be the ones who can keep a clear head and develop a plan to stare down the beast. To that end, we will be here with a full range of aircraft to maximize efficiency and increase productivity. So keep ďŹ&#x201A;ying in this storm. Eventually, the weak will wither. And the bold will emerge stronger. Your primary mission is to ensure that you are among the latter. RISE.

May we help you develop your plan? Visit www.aviator.cessna.com or call +1.316.517.6367.

Aviation SP’s

TABLE of CONTENTS

AN SP GUIDE PUBLICATION

News Flies. We Gather Intelligence. Every Month. From India.

ISSUE 3 • 2010

10 Some business leaders of the older generation may have acquired their jets partly as status symbol. But the new entrepreneurs consider these more as a productivity tool. (More numbers of Cessna Citation CJ2+ may be seen in Indian skies)

Regional Aviation Lest Green Turn to Brown

SHOW REPORT

17 33

Defexpo India 2010 A Success Saga Singapore Airshow Global Marketplace

INDIA AVIATION SPECIAL

21 26 27

Industry Analysis Looking Forward to 2010 Show Preview A Peek at India Aviation 2010 Hall of Fame First Ladies

MILITARY

29 31

Air Defence The Achilles Heel Defence Procurement Quo Vadis?

PRIVATE JETS SCRIPT A COMEBACK With companies on a roll again, young executives are in a hurry to get around and clinch deals. And what better way to negotiate the country’s woefully congested airports than in business jets?

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Cover Story

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Boeing Evolution Through Innovation

A Word from Editor NewsWithViews - Greenfield Airport at Bijapur - Tejas Gets Pricier

InFocus

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Scripting aComeback ��

Rolls-Royce Rolls-Royce: A World Leader

REGULAR DEPARTMENTS

Agni-III: The Taste of Success

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CIVIL

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Cover Photo: Gulfstream Aerospace’s G-IV, owned by Punj Lloyd, in ﬂight. Photo Credit:Abhishek Singh

Forum The Complete Picture

36 40

NewsDigest LastWord Differently Unabled

NEXT ISSUE: Partnership with Russia: A Review

Issue 3 • 2010

SP’S AVIATION

TABLE of CONTENTS PLUS...

PUBLISHER AND EDITOR-IN-CHIEF Jayant Baranwal ASSISTANT EDITOR Arundhati Das SENIOR VISITING EDITOR Air Marshal (Retd) V.K. Bhatia SENIOR TECHNICAL GROUP EDITORS Air Marshal (Retd) B.K. Pandey Lt General (Retd) Naresh Chand

COPY EDITOR Sucheta Das Mohapatra

Looking Forward to 2010

ASSISTANT PHOTO EDITOR

SP’S WEBSITES Senior Web Developer: Shailendra P. Ashish Web Developer: Ugrashen Vishwakarma © SP Guide Publications, 2010

SUB-EDITOR

LETTER TO EDITOR editor@spsaviation.net expert@spsaviation.net

INDIA Air Marshal (Retd) N. Menon Group Captain (Retd) A.K. Sachdev Group Captain (Retd) Joseph Noronha Regional ‘Green’ Aviation

EUROPE Alan Peaford, Phil Nasskau, Rob Coppinger USA & CANADA Sushant Deb, LeRoy Cook, Lon Nordeen, Anil R. Pustam (West Indies) CHAIRMAN & MANAGING DIRECTOR Jayant Baranwal ADMIN & COORDINATION Bharti Sharma Survi Massey

India Aviation 2010

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Issue 3 • 2010

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DESIGN & LAYOUT Associate Art Director: Ratan Sonal Graphic Designers: Rajkumar Sharma, Vimlesh Kumar Yadav

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TO T EA R TH ? E A P T Y OR A H now P IR ST ’t K eenntt A U n AT IS J • Do ommmm HY OR o && cco P RA ITY • N ppoollll G TO CUR es tthhee O E Y PH S • Jooiinn

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A Word from Editor

The dust has barely settled in the wake of Defexpo India that India Aviation beckons. Dispelling the last vestiges of wintry gloom, the months ahead hold forth hope of better tidings.

t is the season for exhibitions, interactions and business exchanges—the time of the year when the waning winter chill sends forth an irresistible invite to step out from the confines of offices and break the daily routine of humdrum activities to engage in across-the-board networking with national and international industry captains amid exciting, invigorating environs. So even as the capital hums with the last echoes of the sixth edition of the Defexpo India 2010, Hyderabad is gearing up for this year’s chapter of India Aviation that exclusively showcases the civil aviation sector. For SP’s, Defexpo was of particularly significance this year as we took pride in being the official media publisher and went all out in our efforts to capture the action across the four days in the daily, SP’s ShowNews. Buoyed by the resounding success of our endeavours to tap the very nerve centre of the armed forces, we now look to Hyderabad for what promises to be an equally enriching experience. Pertinent to the occasion, a section of this edition is dedicated to India Aviation. Besides a preview of the show, the section draws the spotlight on the year ahead as the beleaguered civil aviation industry makes a valiant attempt to emerge from the loom and doom of the year gone by to script a fresh chapter of hope and optimism. Although things are looking up for the airline industry in India, there is also need for caution as irresponsible planning by the airlines could again lead to a situation of overcapacity with the inevitable fare war. If that happens, the airline industry could be plunged into gloom—yet again. Veering away from the dire warnings, the aviation industry also chronicles some of the most fascinating tales of women’s resilience in pursuing their passion for flying. Hall of Fame raises a toast to these free spirits. Quite in sync with the central theme, the Cover Story on business jets raises the pointed question: will business aviation ever be the same again? Only time will tell. But for now, Peter Harbison, Executive Chairman, Centre for Asia Pacific Aviation has this assurance: “Over the next five years, India will enter the ranks of the top 10 business and general aviation markets in the world.” Perhaps,

but if India is indeed serious about its green goals, every sector of the economy will have to pitch in—including regional airlines. On the military front, the various nuances—impediments and challenges—of defending India’s air space have been laid down in gritty detail even as the country’s Defence Procurement Procedure is discussed threadbare. Currently, the Indian Army has inadequate fire power due to inordinate delay in the procurement; the Indian Navy has grave deficiencies in the strength of its submarine fleet; and operational capability of the Indian Air Force is being adversely affected due to depleting force levels, obsolescence and lack of essential support systems. Time for some drastic corrective measures. Grab your copy and come, join as in Hyderabad!

Jayant Baranwal

Publisher & Editor-in-Chief Issue 3 • 2010

SP’S AVIATION

NewsWithViews

GREENFIELD AIRPORT AT BIJAPUR

Even as the launch of Mysore airport remains in a limbo, the state government has moved to develop a Greenfield airport near the historical city of Bijapur within two years. Designed initially for airplanes like ATR 72 or ATR 42, the airport will boost industrialisation and tourism in north Karnataka, Infrastructure and Tourism Minister Janardhan Reddy said after signing the MoU with Chennai-based MARG, an infrastructure development company. MARG will invest Rs 200 crore in this public-private partnership project and the government will provide 727 acres of land. The term of agreement will be for 30 years to design, develop, operate and manage the airport. In addition to the terminal buildings, runways and control tower, MARG will also build utilities necessary to serve the airport during the operational phase.

VIEWS

ILLUSTRATION: MAMTA

cknowledged to be in the forefront of aviation both in respect of the aerospace industry and civil aviation, in the boom years of the airline industry, that is, around 2006, Karnataka announced plans to develop 10 airports, 13 airstrips and 28 heliports in the state over three years in an effort to enhance air connectivity amongst Tier II and Tier III cities as also all remote areas in all districts. The aim was to stimulate uniform economic development across the state. However, a review four years later indicates partial success. Various limitations notwithstanding, Bangalore International Airport by all standards has been a major success story. The state government, however, had only a minor role to play in the airport project itself. On its part it has faulted on its major responsibility to provide high speed rail or road connectivity as yet. Mangalore airport has been upgraded successfully to an international airport currently providing connectivity primarily to the Middle East. It is understood that there are plans to operate flights to the South East Asian region in the near future. However, the situation with regard to the development of other airports in the state has not been very inspiring. Mysore, expected to be the next booming city of Karnataka with an annual tourist inflow of over three million, has the potential to enhance air passenger traffic substantially through direct international flights. Besides, Mysore boasts of a large number of institutions of higher learning and is fast emerging as an information technology hub. But the city is yet to have an operational international airport as planned. Although the runway and terminal building are in place, some of the supporting infrastructure is yet to be created. Development of new airfields at Shimoga and Gulbarga contracted to Maytas Infra Consortium ran into trouble in the wake of the scam involving the Hyderabad-based parent company, Satyam. 6

SPâ&#x20AC;&#x2122;S AVIATION

Issue 3 â&#x20AC;˘ 2010

Other airports, such as Belgaum, that were brought on to the air map appear to be languishing as the private airlines have discontinued operations due to hopeless load factors. During the launch of Quest Global SEZ recently, Minister of Civil Aviation Praful Patel made a commitment to upgrade the airport and restart operations there by Air India if the private operators do not come forward. Hopefully with the launch of the 300-acre Quest Global SEZ, passenger and cargo traffic should improve. Hubli, another airport in western Karnataka where Kingfisher Airlines operates one flight a day, is also not proving to be commercially viable. The prosperous mining area of Bellary which could offer lucrative opportunities for the airline industry currently has two airports, one government owned with no land available for expansion and the other belonging to Jindal. Efforts to develop new airports at Chaganur and Siriwar near Bellary appear to have got bogged down in land acquisition problems. Considering that the area proposed to be acquired is fertile agricultural land and the rather aggressive pro-farmer vote bank politics in Karnataka, prospects of new airports in this area appears to be somewhat bleak. Besides, there is lack of enthusiasm among private entrepreneurs for publicprivate partnership primarily on account of poor commercial viability of small airports in the prevailing uncertain economic environment. The responsibility for the development of small airports would ultimately lie on the state government that finds itself unable to reconcile between the need to develop airports on the one hand and deprivation of farmers of rich agricultural land, their sole means of livelihood, on the other. Creation of aviation infrastructure is indeed an uphill task fraught with imponderables. SP â&#x20AC;&#x201D; Air Marshal (Retd) B.K. Pandey www.spsaviation.net

NewsWithViews

TEJAS GETS PRICIER

Media reports suggest that ‘Tejas’, India’s effort at building an indigenous lightweight fighter, known as the Light Combat Aircraft (LCA) and in the making since 1983, will get an additional funding of Rs 8,000 crore to complete the development programme. The report also suggests that Tejas will obtain initial operational clearance by the year-end. The government had spent Rs 4,800 crore on the LCA programme till 2009-end. Dubbing it a total failure, experts have questioned the wisdom of continuing with the project. Designed by Bangalore-based Aeronautical Development Agency, the LCA is being touted as the most compact lightweight supersonic, multi-role, combat aircraft in its class in the world.

VIEWS

hat Tejas wants, Tejas gets’—screamed media reports in response to the stated infusion of an additional massive financial dole of Rs 8,000 crore ($1.7 billion) to sustain the 27-year-old indigenous LCA project. In 1983, India had commenced a programme to develop an aircraft to replace its ageing Mikoyan Gurevich MiG-21s as the Indian Air Force’s (IAF) primary multi-role tactical fighter. The design was finalised in 1990 as a small, delta-winged warplane. The first two technology demonstrators (TD-1 and TD2) were completed by 1995, but were kept grounded due to structural concerns. More specifically, due to troubles with the development of the ‘flight control system’ since no nation exports Fly-by-Wire technology. Eventually, US firm Lockheed Martin was brought in as a consultant. However, the commercial union was short-lived, terminating in 1998 as part of Washington’s immediate response to India’s second nuclear test. The other major problem was the indigenous Kaveri engine to power the LCA which continued to flounder in many areas of its development programme. Eventually, the integration of the flight control laws was done indigenously by the National Aeronautics Laboratory and the aircraft mated with the GE 404 engine post lifting of some sanctions by the US. It first took to the air in 2001. Latest reports suggest Tejas is likely to obtain initial operational clearance by the yearend with possible induction into the IAF’s squadron service in 2011. But the rate at which the flight testing plus avionics and weapons integration programmes are progressing, the above time frame appears highly ambitious. In fact, there has been all-round scepticism of the project over its inordinate delay. Defence Minister A.K. Antony has, however, strongly defended the LCA programme as recently as on February 2, stat-

ILLUSTRATION: MAMTA

‘

ing, “Today I can assure you with confidence... I can declare at last LCA is going to be a reality.” Dismissing all criticism about the project taking close to three decades, he said agencies involved in the programme strongly believed in the LCA and that the Centre would back the programme. Admitting that the LCA had to undergo rigorous trials before it became a complete fighting machine, he emphasised that development of a new aircraft was not easy and the gestation period was very long. “Don’t expect miracles. Our expectation is to give a momentum for indigenisation,” he stressed. Admittedly, the entire scenario has developed into a ‘Catch-22’ like situation. The programme has moved ahead to an extent where it is deemed to have reached ‘a point of no return’. However, all concerned agencies must now work on a war-footing and ensure no further time delays and cost overruns. It is also hoped that in the absence of the indigenous Kaveri, the nagging issue of providing the aircraft with an appropriately powered engine would be sorted out soon, with the selection of either GE 414-400 (97.9 kN or 22,000 lb st) or, Eurojet EJ200 (90 kN or 20,250 lb st) to ensure the IAF gets the LCA with adequate thrust to meet its operational requirements. Incidentally, till end-2009, the development costs had already exceeded Rs 4,800 crore. With the new allotment of Rs 8,000 crore and the so far planned induction of only about 200 aircraft into the IAF/Indian Navy, the amortised cost of development itself would come close to Rs 64 crore per aircraft. The predicted unit cost of Rs 100-150 crore would not be sustainable and may touch Rs 200 crore or even go beyond that. However, in the long run, even this should be acceptable to the planners, so long as the services get the desired product with operational capabilities, as envisaged. But, there lies the ‘crunch’. SP —Air Marshal (Retd) V.K. Bhatia Issue 3 • 2010

SP’S AVIATION

InFocus

MILITARY

Agni-III: The Taste of

SUCCESS

ILLUSTRATION: MAMTA

UNDAY, FEBRUARY 7, 10.50 AM. LOCATION: Wheeler Island in the Bay of Bengal, off the coast of Orissa. The bright blue sky suddenly came alive amid a massive plume of smoke and deafening blast. India’s Agni-III surface-to-surface, Intermediate Range Ballistic Missile (IRBM) lifted off a fixed platform of Launching Complex-IV with the help of an auto-launcher on its way to reach an assigned surface target, 3,500 km away with pinpoint accuracy (in ballistic missile terms). A jubilant Integrated Test Range Director S.P. Dash announced: “The flight trial has met all its mission objectives as expected.” It was indeed a text-book launch with the missile hitting accurately the designated target. The third consecutive successful test out of the four conducted so far since the first firing in 2006 was significantly different in that in the test firing on February 7, it was for the first time that there was participation by Indian Army personnel. The aim and objectives of the trial also included testing the hybrid Inertial Navigation System/Global Positioning System for accurate guidance of the missile. Developed by the Defence Research and Development Organisation (DRDO) and manufactured by Hyderabad-based Bharat Dynamics Limited, Agni-III has a 3,500 km range, affording India an offensive capability to engage targets deep inside neighbouring countries. India’s declared ‘no-first use’ policy envisages a triad of nuclear counterstrike capability in its quest to acquire the so-called ‘Minimum Credible Nuclear Deterrence’. Capable of being launched from road-mobile transporter erector launcher and rail-mobile carriage launcher, the missile can be dispersed far and wide, continuously changing its position to provide the country the much needed robust ‘secondstrike’ capability. A compact version of the missile, Agni-III SLBM (also known as K-X), is being developed by the DRDO as a submarine-launched version. The Agni-III features two solid fuelled stages with an overall diameter of 2.0 meters which is also compatible with a recently tested Indian sub-surface launch system, clearing it for potential carriage by the under development ‘Arihant’, India’s nuclear-powered submarine. The first stage booster uses advanced carbon composite materials to provide high mass fraction, weighing 32 tonnes. The second stage is made of maraging steel and weighs about 11 tonnes. Both stages are powered by solid propellants. At an all up weight (AUW) 8

SP’S AVIATION

Issue 3 • 2010

of 50+ tonnes, AgniIII sports a wide range of weapons with total payload weight ranging from 600 kg to 1,800 kg, including decoys and other Anti-Ballistic Missile (ABM) countermeasures. Instead of conventional bus architecture, the Re-entry Vehicle is self-contained, with room for about 200 kg of fuel (solid or liquid) after allowing for a long but lightweight thermonuclear weapon of similar capability as the earlier 200 KT ‘boosted fission’ warhead. The earlier ‘fission’ warhead has apparently given way to a much lighter 200-300 KT two-stage thermonuclear design that greatly improves the survivability of the missile against ABM defences as it permits variable trajectories of the re-entry vehicle. During its 800second flight on February 7, the Agni-III reached an altitude of 350 km and its re-entry module sliced into the atmosphere, withstanding searing temperatures of 3,000 degree-plus Celsius. If true, a Circular Error Probability under 40 meters would make the Agni-III one of the most sophisticated and accurate ballistic missiles in its class in the world. This would permit India to deploy a much larger nuclear force using less fissile/fusion material than other nuclear powers, especially in the Asian context. The latest test also validated the nuclear triggering mechanism, clearing the way for Agni-III’s operational induction into the armed forces. However, even if the induction plans go through as smoothly as the latest Agni-III test, it is unlikely that the missile can be considered to be 100 per cent operational before 2012. Therefore, while there are grounds to be justifiably proud of the successful Agni-III test, India is still a long way from creating a credible surface-to-surface ballistic missile nuclear capability to enable it to build the second leg of its nuclear deterrence triad. How far does the country lag behind compared to its two nearest nuclear power adversaries? Turn to Forum for the hard-hitting facts. SP —By Air Marshal (Retd) V.K. Bhatia

The Intermediate Range Ballistic Missile has a 3,500 km range, affording India an offensive capability to engage targets deep inside neighbouring countries

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Forum

MILITARY

The Complete

Picture What exactly is India’s overall nuclear deterrence capability in comparison to its ‘nuclear capable’ neighbours China and Pakistan?

PHOTOGRAPH: WWW.PIB.NIC.IN

AUNCHED IN THE EARLY 1980s, India’s Integrated Guided Missile Development Programme (IGMDP) was an all-encompassing, ambitious project to indigenously develop missiles of different capabilities and for multifarious uses. In keeping with the threat perceptions on the proliferation of missiles in the region, the IGMDP was a well-thought out multi-pronged thrust for India to achieve a very high degree of self-reliance in the vital area of missile technology. But has the Indian endeavour succeeded in all respects? The answer to that would lead to an unequivocal mixed bag of successes and failures. It is a known fact that different versions of the Prithvi have been produced and inducted into the armed forces. Similarly, the Akash missile system has met most of its design objectives and is now poised for induction into the Indian Air Force (IAF). On the other hand, the Trishul development had to be foreclosed for lack of success and the Nag is still struggling hard to achieve some measure of success. As for the Agni series of missile systems, how far has India succeeded in creating this very vital capability, especially in view of its ‘No First-Use’ policy for nuclear weapons? And, where does it stand in comparison with its immediate nuclear armed adversaries who, incidentally, do not follow a similar policy of ‘No First-Use’? In the ballistic missile regime, India can at present boast of just the Prithvi and Agni-I Short Range Missiles (SRBM). Prithvi I and Prithvi II have been inducted into the Indian Army and the IAF, respectively, and are operational. Agni-I, the first of the Agni series ballistic missile with a 600 km to 800 km range, is also reportedly operational, deployed in a Missile Group in the Indian Army. But that is probably where the present capability ends, notwithstanding the periodic political rhetoric. Of late, the security situation in India’s neighbourhood has worsened with security challenges from China, blatant Chinese nuclear and missiles proliferation to Pakistan and mutual proliferation between Pakistan and North Korea. The strategic redline was crossed in 1998 when Pakistan tested the North Korean-supplied ‘No-Dong’ (Ghauri-I)

missile that could threaten the very heartland of India with Pakistani nuclear warheads. This was the ultimate international complicity, allowing nuclear proliferation by proxy into the hands of Pakistan. This and other international security issues forced India to go fully nuclear, resulting in the Pokhran-II nuclear test series and a resolve to its weaponisation by developing the Agni family of ballistic missiles. So what exactly is India’s overall nuclear deterrence capability in comparison to its ‘nuclear capable’ neighbours China and Pakistan? Nuclear weapons capable nations normally build their nuclear deterrence on a triad of airto-surface, surface-to-surface and submarine-launched delivery systems. While the IAF’s Su-30MKI and Mirage 2000 platforms could be considered at par with China’s People’s Liberation Army Air Force’s Su-30MKK and the Pakistan Air Force’s F-16 airborne platforms so far as air-to-surface capability is concerned, it is in the other two legs of the triad where it lags behind China decisively. As for surface-to-surface capability, India is considerably behind even its much smaller neighbour, Pakistan. Evidently, while India may be able to match Pakistan in the SRBM category, it is distinctly at a disadvantage in the 2,000 km capable Medium Range Ballistic Missile category, thanks to wholesale clandestine transfer of not only the technology but the finished products as well by the two obliging countries, China and North Korea. India will undoubtedly have to move on a war-footing to get the necessary capabilities to fill the unenviable voids in its ‘nuclear triad’. The Agni-III is essentially an improved version of the Agni-II in practically all departments of propulsion, guidance and accuracy. Rather than sorting out the Agni-II problems, the Indian defence establishment could perhaps concentrate on putting into production. India could also leapfrog into the Inter-Continental Ballistic Missile realm, bypassing the Agni-IV and moving straight onto developing the Agni-V. The indigenous nuclear-powered submarine, the Arihant, could ultimately provide the submarine-launched third leg of the triad. SP —Air Marshal (Retd) V.K. Bhatia Issue 3 • 2010

SP’S AVIATION

BUSINESS AVIATION

C O V E R

S T O R Y

CIVIL

Private Jets

PHOTOGRAPHS: ABHISHEK / SP GUIDE PUBNS & WWW.CESSNA.COM

Script a Comeback With economic growth expected to return to pre-crisis levels in the coming ﬁscal year, a growing number of ﬂourishing companies and high networth individuals will probably be more willing to loosen their purse strings and sign up for a business jet

SP’S AVIATION

Issue 3 • 2010

By Group Captain (Retd) Joseph Noronha, Goa

www.spsaviation.net

CIVIL BUSINESS AVIATION in. Less than 700 new jets are estimated to be delivered globally this year compared with about 750 to 800 last year and an all-time high of 1,139 in 2008. Besides, the talk is no longer of a two or three-year cyclical downturn followed by renewed growth. There is now a major dampener on expectations over the entire period of the forecast. Blame it on the recent financial meltdown? Yes and no. Last year’s recession did indeed result in the most devastating slump in business and consumer confidence for decades. Politicians, press and public especially in the US, needed a potent symbol of corporate profligacy and decadence to bash. They found it in business jets, which is why the American business aircraft market, by far the world’s most important, went into freefall. As some firms cancelled or delayed orders, others frantically tried to get rid of their jets. But so great were the negative vibes associated with private jets that many went a-begging despite heavy discounts. Business aviation was more intensely affected than any other sector of the aerospace industry or the economy. And business jets fell from grace. WE ARE DIFFERENT

WILL BOUNCE BACK: BJETS PLACED AN ORDER FOR 20 CESSNA CITATION CJ2+ JETS (SEEN HERE) AS PART OF A 50-STRONG BUSINESS AIRCRAFT ORDER. BJETS HAS NOW DEFERRED DELIVERIES AND MAY NOT TAKE THEM AT ALL. HOWEVER, CESSNA IS A MUCH-VALUED BRAND IN THESE PARTS AND IS EXPECTED TO BOUNCE BACK STRONGLY.

ILL BUSINESS AVIATION EVER be the same again? At the end of 2009, Honeywell Aerospace’s annual Business Aviation Outlook forecast a 10-year (2009-2019) tally of 11,000 new business jet deliveries worldwide with a total value of $200 billion (Rs 9,24,535 crore). Not bad, one might say, except that the figures marked a dramatic drop from projections of just a year earlier. In 2008, Honeywell was high on the ‘best ever’ year for business aviation, predicting another record for 2009 and sales of 17,000 new jets worth almost $300 billion (Rs 13,86,805 crore) by the end of 2018. But caution and sobriety seem to have set

In India, however, there wasn’t even muted criticism of corporate jets. Perhaps because their numbers are insignificant— around 170 jets all told. This compares with over 11,000 private jets in the US alone. Another reason could be a tolerant mindset which sees nothing wrong in the well-heeled expending their wealth whether on their offspring’s weddings or on private jets. Or it may just be that in India the period of extreme pessimism, which often triggers paroxysms of envy and criticism of corporate ‘excesses’, passed quickly. Layoffs, job losses and slashed salaries seem to be a thing of the past. Pay hikes this year are expected to be of the order of 9 to 18 per cent. And big bonuses are looking to make a comeback. All of which help make business jets seem less over-the-top. Executive jet sales depend heavily on growth, corporate profits and stock market performance. With all three generally heading North and India’s economic star again in the ascendant, the country seems an attractive market albeit a relatively small one. Embraer believes that Asia’s share of the business jet market is currently between 10 to 12 per cent of the global total. It also anticipates that the number of jets in Asia will grow by nine per cent annually over the next decade to more than double the current number of 600 to 700. It expects India, together with China, to play a major role in this growth. This is borne out by International Air Transport Association (IATA) figures that the Asia-Pacific region is now the world’s biggest passenger market for scheduled traffic. Amidst this growing optimism, can business aviation be far behind? There are two main reasons why business persons are willing to pay more to travel by corporate jets—utility and quality. It is effective for company executives to fly private because of flexibility, time saved and greater reach. A business aircraft can operate from many more airports than airliners can. In the US, for instance, private jets can land at more than 5,000 airports against just 400 touched by commercial flights. This does not yet apply in India. But with the central government committed to a three to four fold increase in the number of airports within a decade, many smaller airports would probably be connected by business aircraft rather than scheduled services. Some far-sighted state governments have realised the value of activating dormant airports and invited private airIssue 3 • 2010

SP’S AVIATION

CIVIL BUSINESS AVIATION

craft to park and operate from there. The returns may be less than from scheduled flights, but the major airlines are also less likely to touch small airports anyway. Then there is the issue of quality. With commercial aviation prone to delays, congestion and irksome security procedures, entrepreneurs would prefer a more satisfying travel experience. If they are entitled to stay in luxury hotels, why grudge them travel in style? REALITY CHECK

Business jet manufacturers and charter companies have long been predicting good times for the Indian market. They mention poor transport infrastructure, an underdeveloped airline network and the low existing business jet base as key factors favouring explosive business aviation growth. Yet the market has not quite lived up to its promises. Ask Asian start-up BJETS. Just two years ago, the company placed orders for 50 jets and announced ambitious plans to become the region’s first fractional ownership enterprise, operating from Singapore and Mumbai. However, till date it has reportedly taken delivery of only four jets, three of which are based in India. It has delayed most of the remaining deliveries and might even cancel some of them. BJETS now seems to have become a run-of-the-mill charter operator. Though a weak market is ostensibly to blame, it is also possible the company overestimated the demand for fractional ownership. Other stories are told of charter providers facing setbacks as well. It is no mean feat to own and operate a business jet in India. Buying and importing a jet can be a long-drawn process involving several disparate agencies, none of them 12

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Issue 3 • 2010

PREMIUM PLAYERS: particularly well-known for DASSAULT FALCON 2000 their warmth or charm. CusIN INDIAN COLOURS (LEFT), toms duty of around 26 per EMBRAER’S LEGACY 600 cent is payable on jets importIN FLIGHT - LIKELY TO BE OWNED BY A FEW TOP ed for private use. This is a BUSINESS HOUSES definite disincentive. Companies that have been granted a Non-Scheduled Operator’s Permit (NSOP) are exempt. But therein lies the rub. What if a jet imported under the NSOP clause is ‘occasionally’ used for private purposes? The Customs Department takes a dim view of such liberties and has even seized several such aircraft, most recently one at Vadodara in end January. Therefore, last year the Centre for Asia Pacific Aviation (CAPA) announced the launch of CAPA Aircraft Advisory—India’s first professional end-toend aircraft acquisition service, designed to de-mystify the process of selecting and acquiring an aircraft for private or general use. Most operators of private aircraft are not from the aviation industry and are unfamiliar with the intricate procedures for the acquisition or disposal of an aircraft as it lies outside their core expertise. A frequent complaint is that business aircraft get stepmotherly treatment. It is hard for private jets to find parking space at the major airports especially the metros where the owners are usually located. There are no small airports or FBOs—convenient and cheap to operate from—that deal exclusively with business aircraft. Private aircraft at the metros and other major airports have to contend with the same con-

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CIVIL BUSINESS AVIATION

gestion and delays that the commercial airlines experience, thus nullifying the very advantages owning a jet is supposed to confer on its proud owner. MRO facilities are few and far between, meaning that jets regularly have to be flown overseas for servicing. Experts say growth is being held back by a chicken-and-egg situation. Business aviation needs MROs to flourish, but adequate MRO facilities are unlikely to be created till the number of jets in the country reaches critical mass. Some business aviation infrastructure is in the process of being set up albeit at a rather slow pace. BULLISH ABOUT BUSINESS

Still, the world’s major business jet manufacturers are bullish on the Indian market. Embraer, for instance, already has over 30 firm orders for its latest offerings—the Phenom 100 and Phenom 300. First deliveries of the Phenom 100 Very Light Jet are expected in the third quarter. Due to the potential for even more orders, Embraer last year took the Phenom 100 on an all-India tour (“Phenomenal Indeed”, SP’s Aviation, December 2009). The new Phenom 300 light jet was certified in December and should be seen in the Indian skies later this year. Hawker 4000, one of the most advanced and luxurious super-midsize business jets, debuted in India last year. Dassault Falcon is also expecting a surge of orders after receiving type certification for the Falcon 7X from the Director General Civil Aviation. The first Falcon 7X was delivered in January. Falcon 2000 and 900 models are already certificated and around 16 large-cabin Falcons are in service in the country. A dozen additional aircraft are reportedly on order for Indian customers.

In 2008, Asian start-up BJETS placed an order for 20 Cessna Citation CJ2+ jets as part of a 50-strong business aircraft order. BJETS has now deferred delivery of most of the jets and may not take them at all. However, Cessna is a much-valued brand in these parts and is expected to bounce back strongly. Last year, Peter Harbison, Executive Chairman, CAPA stated, “Today, India has the fourth highest number of firm orders for business jets and jetliners in the world. And over the next five years, India will enter the ranks of the top ten business and general aviation markets in the world.” A glowing prediction, but will it be borne out? Indeed, increasing numbers of Indians want to fly private, but it is still a small and lacklustre market, to say the least, for the last couple of years. Could demand surge again? According to Honeywell, “The relatively mild impact of the global recession on major Asian economies such as China and India is helping support a more optimistic level of interest in business jets. Improved access and ease of use may also be a contributing factor.” Some business leaders of the older generation may have acquired their jets partly as status symbols. But the new entrepreneurs see them more as a productivity tool. With companies on a roll again, young executives are in a hurry to get around and clinch deals. And what better way to negotiate the country’s woefully congested airports than in business jets? With economic growth expected to return to pre-crisis levels in the coming fiscal year, a growing number of flourishing companies and high net-worth individuals will probably be more willing than ever to loosen their purse strings and sign up for a business jet. SP Issue 3 • 2010

SP’S AVIATION

green CIVIL

REGIONAL AVIATION

Lest

Turn to Brown

Regional airlines that enter the ﬁeld from now on should know that pressures to reduce emissions are likely to intensify as the years pass.A prime consideration, therefore, should be to buy fuel-efficient aircraft.

PHOTOGRAPH: EMBRAER

ollowing last year’s ungroups like Plane Stupid (which uses By Group Captain (Retd) remarkable summit at shock tactics to force people to fly Joseph Noronha, Goa Copenhagen, hopes of a less, especially over short distances) legally binding climate he could symbolise the thin edge of change treaty emerging the wedge of public opinion that at Cancun, Mexico in Deshort-haul and regional flights need cember are fast fading. The climate to be severely constrained. Where denial lobby is baying for blood, pickdoes that leave regional airlines? ing hole after hole in the 2007 Report of the UN Intergovernmental Panel on Climate Change. The so-called fabrications KEEP IT GREEN amount to a minuscule portion of thousands of pages of text The Indian government introduced a new regional aviation and none of them call into question the fundamental premise policy in August 2007. It was hoped that airline start-ups of human-induced climate change. Yet, a sense of gathering would be eager to link small cities and towns in the country’s gloom has gripped the greens. vast hinterland, complementing the long-distance operations Climate change science is indeed contentious. Powerful of the national carriers (“Time to Make Hay”, SP’s Aviation, vested interests—most notably the oil marketing companies— February 2010). But the initial flurry of activity quickly peare keen to continue with business as usual. But the basic as- tered out, perhaps due to the economic turmoil of the last year sertion that growing greenhouse gases are the root cause of or two. However, another key reason could be that potential global warming is sound. And the planet is likely to pay a heavy regional airlines feel, with some justification, that they have price unless emissions are curbed drastically, and quickly. little hope of competing against the established carriers. The Aviation currently makes a relatively small contribution government’s route dispersal guidelines mean that national to global warming. However, it is among the fastest grow- airlines must deploy a specified percentage of their capacity ing sources of emissions. Each year, the industry improves on certain less-frequented routes. As a result, air connectivity fuel efficiency by 1.5 to 2 per cent. And each year, aviation has reached many underdeveloped regions. But it has also grows by 4 to 5 per cent, overwhelming these gains. That meant excess capacity on such sectors. A gradual withdrawal is why green activists have commercial aviation squarely of the route dispersal regime would enable regional airlines in their crosshairs. Last year, a British MP called for a total to operate smaller aircraft more efficiently in the space vaban on all domestic flights within the UK. Together with cated by the national carriers. 14

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CIVIL REGIONAL AVIATION There are stray signs that regional aviation could begin to pick up in the coming months. In the north, MDLR Airlines is reportedly considering resuming operations with its 70-seat Avro 146-RJ70 aircraft, suspended since October. In the south, Star Aviation, which has reportedly taken delivery of two out of seven Embraer E170 regional jets on order, is on the lookout for a buyer able to launch operations by its June deadline. And Jagson Airlines’ much-anticipated commencement as a regional carrier, also in the North, may soon take place. A few other start-ups lurk in the wings, awaiting an opportune moment to make their grand entry. The recent upsurge in the number of air passengers in the country should provide them some welcome encouragement. India has made a non-binding commitment to reduce its 2005 carbon intensity 20 to 25 per cent by 2020. Indian commercial aviation logged 20 per cent average annual growth between 2003-04 and 2008-09. During this period, the yearly consumption of fuel also grew from 2.5 million tonnes to 4.5 million tonnes, representing a near-doubling of CO2 emissions. Since the country has one of the least penetrated aviation markets of the major economies, and among the highest rates of economic growth, it is a no-brainer that aviation related emissions will increase exponentially in years to come. If the country is indeed serious about its green goals, every sector of the economy will have to pitch in. That includes regional airlines. The slow progress of regional aviation thus far could, therefore, provide an opportunity to re-jig the policy and take ecological concerns on board. Regional airlines that enter the field from now on should know that pressures to reduce emissions are likely to intensify as the years pass. Planes don’t come cheap and hasty decisions made today could continue to haunt the airlines for 25 to 30 years—the period they need to keep aircraft in service to get returns on their investment. A prime consideration, therefore, should be to buy fuel-efficient aircraft. ENVIRONMENTALLY SENSIBLE, ECONOMICALLY SOUND

New regional airlines will be chief users of hundreds of airstrips around the country likely to be reclaimed or constructed. They will take aviation services to many areas comparatively free of pollution thus far. They need to keep it that way. The carbon footprint of any trip depends on the aircraft model, the distance flown, how many seats are empty, how much luggage passengers carry etc. Low Cost Carriers’ ceaseless quest for cost savings makes them far more carbon-efficient than other airlines. Growth also needs to be gradual and capacities kept strictly under control so that passenger load factors remain consistently high. EasyJet, for instance, uses only the newest and most fuel-efficient aircraft, puts in extra rows of seats, and flies at high load factors, making its emissions per passenger around 28 per cent less than regular carriers over the same distance. Airlines basically have three ways to limit emissions—using fuel-efficient aircraft, reducing weight and improving operations to burn less fuel. Turboprops have a striking efficiency advantage over jets and are eminently suitable for regional flights. India’s regional airline policy also encourages small planes. Aircraft with a seating capacity of less than 80 passengers, like the Alenia ATR 72, Embraer E-170, Bombardier CRJ-700, and Avro 146-RJ70 are exempt from landing and airport parking charges, and billed at reduced rates for 16

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Issue 3 • 2010

route navigation and terminal navigation facilities. Those with a take-off mass not exceeding 40,000 kg also pay just four per cent sales tax on aviation fuel across the country. Since fuel constitutes 40 per cent or more of an airline’s operating cost, this is a major gain. It also pays to constantly refine operating techniques. Once again, regional airlines have an advantage. Flying over lessfrequented routes and away from congested airports they can more easily adopt best practices like continuous climb departures, optimal altitudes for reduced fuel burn, and continuous descent approaches at destination. IT PAYS TO CONTROL CARBON

In the face of dwindling government resolve and lack of public support for “harsh” measures, plans to tackle climate change appear to be turning somewhat brown at the edges. Still the whole global warming debate is likely to return to centre stage some day. And with air transport expected to remain a growth market for decades to some, it is bound to feel the heat. Flying will be carbon-intensive for the foreseeable future. Air traffic is likely to double or even triple by 2020 worldwide, yet there are no standards governing the CO2 emissions of aircraft (like those for cars, for example). But they will come. Neither has the airline industry any legally binding targets to reduce CO2 emissions. However, pressure is mounting, most notably in Europe, to subject the industry to significant restraint. Besides, basic economics (increasing profit by reducing fuel consumption) should push the industry to explore more fuel-efficient ways of operating. Apart from the cost of fossil fuel (and the long-term trend is 2 undeniably upward) concern over security of supplies should spur a determined search for alternative fuels. It is practically certain that oil will run out some day, so the search for lowcarbon alternative fuels should also be pursued with determination. Switching to lowemission aircraft would prove costly for existing airlines. Not so for new regional airlines. They can select the most fuelefficient aircraft, use airspace more efficiently, and follow an ecologically sound strategy, even as they take the benefits of aviation to the remote corners of the country. Young regional airlines have a chance to be in the forefront of another green revolution, blazing a trail for the old-timers to follow. SP

Air traffic is likely to double or even triple by 2020 worldwide, yet there are no standards governing the CO emissions of aircraft (like those for cars, for example). But they will come.

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SHOW REPORT

DEFEXPO INDIA 2010

Success SAGA

Defexpo India 2010 saw the largest congregation ever of products and companies from across the world.The exhibition ground set the stage for en-number of pacts and agreements between global industry giants.

INAUGURATION: DEFENCE MINISTER A.K. ANTONY LIGHTING THE CANDLE

PHOTOGRAPHS: RATAN SONAL, ABHISHEK / SP GUIDE PUBNS

HE SIXTH EDITION OF THE PACTS AND DEALS By Sucheta Das Mohapatra DEFEXPO INDIA 2010 witOver the years, Defexpo India has nessed the best of defence prodgrown as an important event in the ucts and the largest conglomeraglobal defence and aerospace exhibition of companies from across the world. tion calendar, showcasing all aspects The defence exhibition held from February 15 to February 18 in of defence technologies available worldwide. But the Defexpo New Delhi had more than 200 new exhibitors and an increase 2010 had much more on display. Besides the products, the in participation by about 45 per cent compared to the Defexpo exhibition ground set the stage for en-number of pacts and 2008. Besides a host of the land and naval system exhibits, the agreements between global industry giants. expo also attracted major players from the aviation industry. A shareholders agreement was signed between Finmeccanica Company AgustaWestland and Tata Sons for production of MAJOR ANNOUNCEMENTS AW-119 helicopter at the JV Company to be based in Hyderabad. Inaugurating the show, Defence Minister A.K. Antony de- Helicopter manufacturer Sikorsky also declared its tie-up with clared that India will very soon publish the ‘Technology Tatas for manufacture of up to 36 airframes for its showpiece Perspective and Capability Roadmap’. The road map high- VVIP helicopter - the S-92. The airframes will also be manufaclighting the military requirements of India’s defence force tured in Hyderabad. With these tie-ups, India shall emerge as an for the next 15 years shall be displayed on the Ministry of outsourcing hub for major helicopter manufacturers. Defence website. It will make the Defence Procurement proSAAB and Samtel signed a MoU to jointly develop, mancess transparent and speedy. ufacture and market RIGS Head-Up Displays (RIGS HUD) in The Defence Minister further added that India’s defence India. IT giant Wipro announced that an agreement has been expenditure will increase in proportion to the GDP growth of signed with CAE Inc to jointly address the growing simulationthe country. “India’s defence expenditure is about 2.5 per cent based training, operations, maintenance and training support of its GDP. The Indian economy is expected to grow at 8 per services opportunities for India’s defence market. Likewise, cent to 10 per cent for the next two decades. Expenditure on CAE and Hindustan Aeronautics Limited announced that the defence in absolute terms is bound to increase in equal pro- JV Helicopter Academy to Train by Simulation of Flying will portion,” said Antony. open by mid 2010. The academy will be the first Level D heliSpeaking on the defence offsets policy, the Union Min- copter simulator training facility in India. ister informed that changes are being made to render the offsets policy more feasible. “Offset banking is now part of PRODUCTS SHOWCASED the defence offsets policy and the licensing conditions have The Defexpo 2010 showcased a range of macro and micro also been rationalised. Necessary administrative structures simulators from Eurofighter, Anjani, Defence Research and have been put in place in the Ministry of defence to facilitate Development Organisation, Boeing etc. The Netra by (DRDO), offset banking,” he said. which can be applied in anti-terrorist operations, counter-inIssue 3 • 2010

SP’S AVIATION

SHOW REPORT DEFEXPO 2010 surgency in forested areas, hostage situations, border infiltration monitoring, local law enforcement operations, search and rescue operations, disaster management and aerial photography and Micro UAS ADG-200 by Anjani designed to perform tasks such as aerial documentation, coordination, exploration, surveying, communication, inspection and observation were a few among the micro simulators. F-18 Super Hornet flight simulator, Eurofighter simulator and DRDO’s Tejas and the BrahMos on Su-30- MKI drew visitors’ attention. Boeing Defense, Space and Security displayed the combat proven F/A-18IN Super Hornet multirole strike fighter, the P-81 multi-mission maritime patrol aircraft, and the models of CH-47F heavy-lift Chinook helicopter and the combat-proven AH-64D Apache Longbow attack helicopter. The company held an engrossing session on the C-17 Globemaster, which has already been delivered to five countries and will soon land in India too. Lockheed Martin drew visitors’ attention to C-130J Super Hercules, a combination of the latest in aerospace technology with a proven, rugged airframe design, resulting in an aircraft that gives the Indian air Force more capability with greater operational efficiency. The first C-130Js will be delivered by 2011. The other products by the Company included Apache Systems and MH-60R Multirole Weapon System. On display also was Rafael’s Fish Hawk’s new streamlined design for potential ASW platforms, the Iron Dome system to be delivered to the IAF’s Air Defence division, Spike NLOS- the multi-purpose, multi-platform electro optic missile system which can be installed on air, land and naval platforms, and also the Spike ER- multipurpose missile system for combat vehicles, helicopters and naval vessels. PUBLIC FIGURES AT THE SHOW

Visitors at the Defexpo including renowned figures and even students from different technical colleges of Delhi got an opportunity to have a flight in the simulators. Union Minister of State for Communication and IT Sachin Pilot and IAF Chief Air Chief Marshal P.V. Naik had an exclusive flight in the Eurofighter Typhoon simulator. The SP’s stall at Hall no- 14 also became a major crowd puller during the show. Defence Minister A.K. Antony, Minister of States Dr. M.M. Pallam Raju, Member of Parliament and industrialist Naveen Jindal and many other dignitaries visited the stall during the Defexpo. DEFEXPO INDIA 2012

A biennial event, the seventh edition of the Defexpo will be held from February 9 to February 12, 2012, as stated by the Ministry of Defence. SP — With inputs from Vishal Thapar and Ruchika Chawla 18

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Issue 3 • 2010

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SP’S STAND: A CROWD PULLER

SP’S EDITOR-IN-CHIEF JAYANT BARANWAL WITH DEFENCE MINISTER A.K. ANTONY VISITING SP’S

MINISTER OF STATE FOR DEFENCE M.M. PALLAM RAJU BROWSES THROUGH SP’S PUBLICATIONS

NAVEEN JINDAL, MP AND INDUSTRIALIST IN CONVERSATION AT THE STAND

Issue 3 • 2010

SP’S AVIATION

SHOW REPORT DEFEXPO 2010

SPECIAL APPEARANCES AND SPECIAL ACTIONS: UNION MINISTER OF STATE FOR COMMUNICATIONS AND IT SACHIN PILOT IN EUROFIGHTER SIMULATOR (FACING PAGE TOP); INDIAN MICRO UAV IN ACTION (FACING PAGE BOTTOM); (ABOVE) AIR CHIEF MARSHAL P. V. NAIK - IAF CHIEF - EXAMINES EUROFIGHTER’S SIMULATOR; (BELOW) AGUSTAWESTLAND CEO GIUSEPPE ORSI STRIKES A DEAL WITH RATAN TATA FOR A JV TO MANUFACTURE AW119 HELICOPTERS

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Issue 3 • 2010

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India Aviation Special INDUSTRY ANALYSIS

the airlines and other aviation companies that folded up, some that did not start at all, and the collateral delays in enterprises that would have been the infrastructure required to support aviation. So far as airlines are concerned, according to IATA, there was a 3.5 per cent decline in passenger traffic and a 10 per cent drop in freight carriage by airlines during the year 2009. It may be pertinent to note that IATA estimates a net loss of $11 billion (Rs 50,835 crore) for 2009. This figure is much higher than the average for the last decade which is about $4.91 billion (Rs 22,690 crore). Much as we would like to grant 2009 a decent burial here and cast an interrogative look at the portents that indicate what 2010 holds out for the airline industry in India, the trends that manifested themselves during the latter half of 2009 need to be studied so as to crystal gaze into 2010. According to the figures released by the Airports Authority of India (AAI), domestic air travel market showed a 20 per cent growth in the second half of 2009 over 2008. However, as the second half of 2008 itself had witnessed a sharp fall in demand, this 20 per cent growth actually represents a rebound only to the 2007 levels. It is estimated that the Indian aviation industry lost around Rs 10,000 crore during 2009. However, the last quarter of 2009 brought forth some good cheer in the form of buoyant results from some airlines. Jet Airways and SpiceJet both declared handsome profits for that quarter. GoAir’s balance sheet for the quarter is also said to have crossed the border between red and black. However, in the absence of published results, this iteration cannot be confirmed. Considering that all three airlines had heavy losses during the corresponding quarter the previous year, these profit lines coming as they did at the end of a terrible year, are definitely cause for cheer. But do these figures truly presage a linear progression to prosperity for the airline industry? As for the dynamics of domestic market shares, Kingfisher lost its first position in the domestic market to Jet Airways. Between the two, they continue to control around half of the Indian market. Kingfisher’s losses increased during Q3 from Rs 413 crore in the corresponding period the previous year to Rs 420 crore. Kingfisher plans to raise Rs 400 crore from the market while loss-making Air India is likely to get Rs 1,200 crore in the forthcoming Budget. In 2009, GoAir saw its share of the domestic market double from 2.5 per cent in January to over five per 22

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Issue 3 • 2010

cent in December. IndiGo and SpiceJet also gained a little in the market share as MDLR ceased operations in the beginning of October. GOING INTERNATIONAL

SpiceJet has applied to the Directorate General of Civil Aviation for permission to fly abroad from June 2010, initially only to South East Asian and South Asian countries. “We do not plan to fly to longer destinations. We plan to go slow on our international plans,” CEO, SpiceJet, Sanjay Agarwal is quoted to have stated. The current regulatory requirement is a fleet of 20 aircraft and five years of domestic operations. SpiceJet will be the country’s first Low Cost Carrier (LCC) to fly abroad. Air India Express, the LCC component of Air India already operates international flights, but is not an independent airline in this context. GoAir, another LCC, will complete five years of domestic operations in November 2010, but has no plans to fly abroad as it has only eight aircraft on its strength as of now. The airline plans to add only two aircraft to its fleet by November 2010. It is highly unlikely that, during 2010, the regulatory framework will become liberal and allow airlines with fleet size less than 20 to fly abroad. Should that come about, GoAir could consider going international. Paramount Airways also completes five years in August 2010 but with only five aircraft, it is way below the minimum of 20. Apart from the fact that compared with domestic operations, international routes are financially more lucrative for airlines, there are other advantages in flying abroad. International routes have longer stage lengths, more liberal Flight Duty Time/Flight Time Limitations and provide for higher daily utilisation rate of the aircraft. Typically, an aircraft being used for domestic sectors would be utilised for 12 to 13 hours a day. This figure could go up by 15 per cent in international operations. This factor is all the more important as the current regulatory frameFUTURE BRIGHT: work in India is SPICEJET, very generous to KINGFISHER, AIR foreign airlines INDIA (NACIL) flying into and out LOOK FORWARD TO A MORE of India—at the PROMISING cost of Indian airFUTURE lines. This threat www.spsaviation.net

IndiaAviation Special INDUSTRY ANALYSIS will remain around during the year. Air Asia, after four years of struggle, has managed to break into the high potential Vietnam aviation market. This is the carrier’s fourth ASEAN venture after Malaysia, Thailand and Indonesia and sets it on course to tackle its next ASEAN ambition, a venture in the Philippines. Market watchers feel that India would be their next target. A possible alliance between Air Asia and Jetstar, which could happen in 2010, would be bad news for Indian airlines with foreign ambitions. AIRLINE RECRUITMENT

While 2008 and 2009 saw Indian airlines indulge in some ruthless retrenchment and salary cuts, 2010 promises to be a year of resurgence in manpower recruitment. Last year, at the nadir of the airline industry’s mercurial history, there were strikes, public and media outcries, and mass protests by cockpit and cabin crew in retaliation to airlines’ layoff initiatives. All that appears set to change with some airlines, especially the LCCs, embarking on expansion. Moreover, airlines that had trimmed capacity last year are now set to expand. This has helped revitalise the job market. At least two airlines have advertised for and begun hiring captains, first officers, cabin crew and engineers. At the peak of the lay-off period, the Indian industry had lost some local talent to foreign carriers. Indian airlines are now trying to woo them back. Managing Director of Paramount Airways M. Thiagarajan has declared that his company plans to hire aggressively to fill

vacancies that had arisen due to high attrition. According to Kapil Kaul, CEO for the Indian Subcontinent and Middle East at the Centre for Asia Pacific Aviation, hiring has been initiated by LCCs like SpiceJet, IndiGo and GoAir as they have plans to add new aircraft and expand their services this year. In its latest quarterly business confidence survey of airline Chief Financial Officers (CFO), IATA states that though job cuts were still happening in the fourth quarter of 2009, for the first time since April 2008, a majority of CFOs now expect to increase or hold employment steady in the year ahead. Kaul believes that mass hiring of the kind Indian airlines had seen in their best days, would happen around the third quarter of 2010. AIR CARGO

Internationally, air cargo yields are reported to be on the increase, riding on recovering demand and higher freight load factors. Asian airlines, with greater exposure to air cargo markets and benefiting from relatively stronger regional economic recovery, report better than average performance with just over half of the carriers from the region reporting air cargo yield increases. According to the IATA, “Freight load factors have risen to pre-recession levels and, if maintained, should provide the market conditions for some improvement in yields during the year ahead.” Against this backdrop, 2010 promises to be munificent for Indian cargo carriers. While Quik Jet is yet to take off, Aryan Cargo Express is about to commence operations. Blue Dart, in its own quiet and efficient style, marches on profitably. In a bid to boost revenues, two of

IndiaAviation Special INDUSTRY ANALYSIS the country’s leading airlines ¬Air India and Jet Airways plan to increase cargo operations on international routes. Air India is banking on increasing the belly cargo capacity of its passenger aircraft, while Jet plans to further boost the business by deploying part of the capacity of its around half-a-dozen leased aircraft which will be returned over the next two years for the air cargo business. Air India will be hiving off its air cargo business into an autonomous unit by April 1. Jet Airways, which does not have dedicated freighter aircraft, is working on optimising the belly space of its passenger aircraft. Air India Cargo contributes around 8 per cent to the total revenues of National Aviation Company of India Limited, while Jet Airways is looking at deriving around 9.5 per cent of its consolidated revenue from air cargo operations, domestic and international in two years time. Thus, 2010 promises to be a great year for air cargo operations for Indian airlines. MAINTENANCE, REPAIR & OVERHAUL

2009 was a hard year for aviation MROs and suppliers of parts and components—essentially related to the Original Equipment Manufacturers and airlines experiencing fund flow problems. Almost every airline cut back significantly on the quantum of operations, in some cases grounding/storing or leasing out aircraft. In addition, there was a general hold back on discretionary spending, inventories of consumables/spares, and renegotiation of agreements with MROs and parts suppliers. Inevitably, the older aircraft were grounded and this affected MRO business that much more harshly as older aircraft require comparatively more maintenance activity than the new. However, 2010 promises to be a year of good hope for MROs in general as airlines now look to rebuild their capacity and refit/upgrade aircraft interiors as they adapt to some of the structural changes that have taken place over the past two years. As global economy recovers, so should the passenger loads, hence triggering the business that would come the MRO way from airlines. In an interesting aside, during the Singapore air show in early February, majority of the $10 billion (Rs 46,215 crore) deals were not one of aircraft orders, but of MRO, engine and avionics contracts. Currently, India has very little domestic third party MRO capability, with 24

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Issue 3 • 2010

aircraft either maintained in-house or sent out of the region to places like Malaysia and the Middle East. During 2009, Air Works became the first Indian company to receive European Aviation Safety Agency (EASA) certification, covering airframe and component maintenance for 737NGs and Classics and the ATR family. It already held India’s Directorate General Civil Aviation authority, but EASA certification makes it possible to attract aircraft that are on lease to Indian airlines, as lessors typically require carriers to have such aircraft maintained at US Federal Aviation Administration or EASA certified stations. In January, Air Works received Airbus certification for the A320 up to A check and is working toward C check authority. Air Works is developing a maintenance centre at Hosur, near Bangalore. The first hangar at Hosur is operational and can handle one 737/ A320 and a turboprop. It has carried out C checks on a pair of Kingfisher ATR72s and a 737 for SpiceJet. The second facility will be a paint hangar, with construction set to start in 2010. An MRO hub is expected to come up at Ropar, 45 km from Chandigarh, for the civil aviation sector. The MRO will be developed over a 50-acre area at a cost of Rs 30 crore. Work is expected to start during 2010 as the Mohali airport is expected to be operational by June 2010. The board of Jet Airways (India) Limited has approved an investment of up to 26 per cent in MAS GMR Aerospace Engineering Company Private Limited, which is a 50:50 joint venture between Malaysian Aerospace Engineering SDN BHD, Malaysia, and GMR Hyderabad International Airport Limited, set up to undertake MRO activities. HINT OF A SILVER LINING

Boeing is all set to establish a $100 million (Rs 460 crore) MRO in partnership with Air India at Nagpur. Construction is to commence in 2010 and would be completed end 2011. The plan is to build two aircraft hangars, which would be used to maintain Boeing 777s and BoeGOOD TIMES ing 787s. Dinesh AHEAD: INDIGO, Keskar, President, JET AIRWAYS, GO Boeing India, is on AIR, TOO, EXPECT A SMOOTH RIDE record as having AHEAD expressed satiswww.spsaviation.net

IndiaAviation Special INDUSTRY ANALYSIS faction at the signs of recovery in the Indian aviation sector and has confirmed that Boeing plans to deliver nine aircraft to Indian carriers Air India, JetLite and SpiceJet in 2010. He has also stated that there is a backlog of 85 aircraft to be delivered to Indian carriers over the next five years. Although there have been no new orders placed with Boeing over the last 18 months, the fact that there have been no cancellations of orders during the bad year gone by, augurs well for 2010. Although things are looking up for the airline industry in India, there is also need for caution as irresponsible planning by the airlines could lead to a situation of overcapacity again with the inevitable fare war. If that happens, the MRO TO airline indusSTRENGTHEN: AS PER MARKET try could be INDICATIONS, plunged into INDIA IS LIKELY TO gloom—yet HAVE A STRONG MRO BASE again. SP

Issue 3 • 2010

SP’S AVIATION

India Aviation Special SHOW PREVIEW

PEEK

A at India Aviation 2010

CIVIL FRATERNITY @ ’08: A380 DOMINATES THE SCENE; GMR SPEAKS ON ITS UPCOMING CONTRIBUTIONS AT AIRPORTS; BIG AND SMALL WORK TOGETHER

Experts on the civil aviation industry from across the globe will take part in the conference to be held in Hyderabad from March 3 to 7

PHOTOGRAPHS: SP GUIDE PUBNS

OLLOWING THE SUCCESSFUL LAUNCH By Ruchika Chawla of India Aviation 2008, this year’s biannual event aims to scale new heights for India’s civil aviation industry. Being held in Hyderabad, India Aviation 2010 will once again bring together aviation companies from around the world to showcase their products to fulfill the rising number in India’s air transportation. Highlighting the event will be the Second International Conference on Civil Aviation, jointly organised by the Ministry of Civil Aviation and Federation of Indian Chambers of Commerce and Industry. Experts on the civil aviation industry from across the globe will take part in the conference which will provide a forum for all sectors to debate, discuss and network on ways to do business in India. The conference is aimed at providing an outlook for airport businesses worldwide, as well as an insight on addressing the current global economic challenges the civil aviation industry is facing. India Aviation provides an ideal venue for the civil aviation industry to hold conferences, exhibitions, display products and share knowledge on ways India and its metropolitan airports can compete with its global counterparts. A highlight of India Aviation 2010 will be the CEO’s Forum—an exclusive platform for chief executives of leading companies of the aviation sector to engage in an interactive session with the Minister for Civil Aviation, Praful Patel. India Aviation will be on from March 3 to 7, 10 am to 6 pm with public days on the concluding two days. The Minister for Civil Aviation will inaugurate the event that will be attended by senior ministry officers. Later, a dinner hosted by Patel will provide an opportunity for participating aviation sector members to meet and network. SP 26

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A highlight of India Aviation 2010 will be the CEO’s Forum— an exclusive platform for chief executives of leading companies to engage in an interactive session with the Minister for Civil Aviation, Praful Patel

www.spsaviation.net

India Aviation Special

Hall of Fame

SOPHIE BLANCHARD

AIDA DE ACOSTA

JACKIE COCHRAN

RAYMONDE DE LAROCHE

LILY LITVAK

HE FIRST WOMAN TO leave the surface of the Earth did so on June 4, 1784. Elizabeth Thible of France was so thrilled floating a mile above the ground in a hot-air balloon that she reportedly burst into song. Later, the Chief of Police of Paris remarked women could not possibly stand the strain of ascending in balloons and that, for their own sake, they should be protected from the temptation to fly. Jeanne Labrosse did not heed this worthy counsel and in 1798 she became the first woman to fly solo in a balloon. A year later she also made the first parachute jump by a woman. In 1809, Sophie Blanchard crashed to her death while flying a balloon—the first female fatality due to aviation. This mishap made a critic declare, “A woman in a balloon is either out of her element or too high in it.” Aida de Acosta was the first woman to pilot a powered airship. In 1903, in Paris, she needed just three flight lessons in a dirigible before ven-

BESSICA MEDLAR RAICHE

HANNA REITSCH

AMELIA MARY EARHART

VALENTINA TERESHKOVA

FIRST LADIES Elizabeth Thible of France was the first woman to leave the surface of the Earth; Jeanne Labrosse the first to fly solo in a balloon;Aida de Acosta the first to pilot a powered airship; Raymonde de Laroche of France the world’s first licensed female pilot—they and several more of their gender form the elite club of women fliers who shattered the glass ceiling in aviation

turing to take it up by herself. Her parents were appalled. Certain that no man would marry a woman who had

LOUISE THADEN

SALLY K RIDE

done such an unbecoming thing they managed to hush it up. The truth only came out three decades later. In 1908, Thérèse Peltier became the first woman passenger in an aeroplane. Then she learned to fly and reportedly made at least one solo flight in Turin, Italy. In March 1910, Raymonde de Laroche of France obtained a licence from the Fédération Aéronautique Internationale (FAI) and became the world’s first licensed female pilot. Some feel that women like to do things differently and Blanche Stuart Scott (the US) proved them right. In September 1910, Blanche was practising solo taxiing in a biplane, prior to taking flying lessons. A limiter fitted on the throttle apparently moved and she opened the throttle more than required, inadvertently getting airborne. The bystanders may have been forgiven for expecting an almighty crash. However, she climbed to an altitude of 40 feet before making a gentle landing. Since her ascent was “accidental” it is not officially regarded as the first flight Issue 3 • 2010

SP’S AVIATION

India Aviation Special

Hall of Fame by an American woman. That honour goes to Bessica Raiche who accomplished the feat a month later. It wasn’t until August 1911 that Harriet Quimby became America’s first licensed female pilot. A decade later, Bessie Coleman overcame barriers of race as well as gender. Refused entry into American flying schools, she eventually earned her pilot’s licence in France, becoming the first African-American (male or female) in the world to do so. Returning to the US, she opened her own flight school in 1921. Unfortunately, she died in a crash five years later. The early decades of the 20th century exacted a terrible toll on aviation’s pioneers. The machines fondly called aeroplanes were hardly that—such ramshackle and fragile contraptions were they. The scene was also one of complete anarchy. For several years there was little or no regulation—it was not considered necessary. Women took to aviation enthusiastically though they faced great difficulty in being accepted for flight training or joining flying professions. The widely shared sentiment was that women had no place in the sky. Doubts were raised about their ability to control a plane—considering their weaker physique and the thinner air in the upper atmosphere. But the handiest argument was that women were prone to panic and were temperamentally unfit to fly. Meeting with determined resistance and stumbling blocks everywhere, deliberately excluded from piloting passengers, women decided to do their own thing. Many got involved in record-breaking and long-distance flying or dangerous stunts to attract attention and earn money. Daring women pilots flew as high and as fast as the men, often breaking records set by men and defeating them in races. Who can forget Amelia Earhart, founder president of The Ninety-Nines and arguably the most famous female pilot in history? Her solo flight across the Atlantic in 1932 marked a dramatic turning point. At last people began to accept that women could, indeed, fly. But progress was still patchy. In 1934, Helen Richey, a racing pilot, was hired by America’s Central Airlines as the first woman pilot on a scheduled airline. However, the pilots’ union refused to accept her, forcing the airline to place irksome restrictions upon her. 28

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After 10 months she resigned from the job, saying she was not going to be a fair-weather pilot. Even when women were grudgingly permitted to compete in races, they were not allowed to race against men under equal conditions. For instance, they were restricted to engines of “appropriate horsepower” (read, less powerful). They were also obliged to take a male medic on the flight. Since women were not allowed to participate in America’s Cleveland Air Races, they launched their own race, the National Women’s Air Derby. The first Derby in 1929 attracted threats of sabotage and headlines like “Race Should be Stopped!” In 1936, Louise Thaden and Blanche Noyes won the Bendix Trophy Race outright—the first victory of women in a race wherein both sexes could compete. In India, too, the early decades of aviation were almost totally male dominated. Only a few intrepid women ventured to take to the air. Urmila K. Parekh was the first Indian woman to obtain a pilot’s licence in 1930. Prem Mathur was the first to obtain a commercial pilot’s licence in 1947. Durba Banerjee joined Indian Airlines in 1966, the first of many women pilots to join various airlines. At the beginning of 1943, women comprised 31.3 per cent of the aviation workforce in America. More than 1,000 American women flew warplanes, but it was not until decades later that the country realized that these women had been spearheading a revolution. Chuck Yeager, the first person to break the sound barrier, said: “They flew warweary aircraft to repair depots; they instructed male pilots and flew military aircraft on navigational training flights. They performed routine testing of military aircraft; flew administrative missions; towed targets for live gunnery practice, and, in total, flew every type of mission except combat.” By the end of the war, they had ferried nearly 13,000 aircraft. But the 38 women who died received no military honours since they had been hired as civilians. Their bodies were taken home at the expense of friends and relatives. In the Soviet Union, however, three regiments of women went into combat, mostly flying antiquated bombers to attack German positions by night. Collectively known as the Nachthexen (night witches) they flew more than 24,000

sorties and won 23 Hero of the Soviet Union medals. Only the most talented were assigned day fighter duties, among them Lily Litvak—the most famous female fighter pilot of all time. Known as the “White Rose of Stalingrad” she was the Soviet Union’s top female ace and had twelve Luftwaffe kills to her credit. In Germany, Hanna Reitsch and a few other women served as test pilots before and during World War II. Hanna was the world’s first woman to pilot a helicopter. Clearly, by the time the War was over, women had proved that they were first-class pilots capable of flying any aircraft in the world. And yet, soon afterwards, most air forces dispensed with them, especially in combat roles. It was only in the last two decades of the 20th century that some countries gradually began permitting women to join combat units. In other noteworthy firsts, Jackie Cochran became the first woman to pilot an aircraft supersonically in 1953. She also broke every speed, altitude and distance record for women. Atmospheric researcher Jeannette Piccard held the women’s altitude record for her balloon ascent to 17,550 m in October 1934, until Valentina Tereshkova of the Soviet Union entered outer space in June 1963. Valentina was the first woman to achieve that feat. It was only in 1983 that the first spaceflight of an American woman astronaut, Sally K Ride, occurred. In 1999, Eileen Collins became the first woman to command a US space shuttle mission. Finally, at the turn of the millennium, women had accomplished virtually every aviation achievement. Through much of aviation history, flight was considered an unladylike pursuit and “flying women” were suspected of being brash and unfeminine. Well-meaning men felt it their duty to protect women and one way of doing so was by preventing them from doing dangerous things. Some simply did not want women sharing the limelight with them. Others felt that, were a woman to die in a crash, aviation would be set back several years because of public outcry. Nevertheless, women went ahead and flew simply because they loved to fly. They flew enthusiastically, they flew persistently, they flew with determination. And still do. SP —Group Captain (Retd) Joseph Noronha, Goa www.spsaviation.net

MILITARY

AIR DEFENCE

The Achilles

Heel

Although it is repeatedly stressed at all levels that India is prepared for any eventual conﬂict with its irksome neighbours, honest evaluation of the country’s air defence capability in the mountains could throw up some chilling facts

T DOESN’T REQUIRE MUCH binoculars and HF R/T sets. In some By Air Marshal (Retd) A.K. Trikha, PERSPICACITY to appreciate areas a sprinkling of Indra I and II Pune that be it peace or war, defence radars are deployed for early warnof national air space is a coning purposes. Behind the chain of tinuous 24X7, 365-days-a-year task. mobile observers, in times of tenAir defence as they say, must never sion ad hoc Control and Reporting sleep. Equally, it takes years of strenuous effort to plan, organ- Centres (CRCs) are rigged up to cover the most likely routes of ise and train to put in place an effective air defence system. It ingress. P-18 surveillance radars detached from Pechora SAM is a silent assurance of security which may not capture head- III units and a handful of more modern ST-68s constitute the lines in normal times, but consequences of neglect or failure surveillance resources of these CRCs. can be catastrophic. When required these transportable radars are moved to While the crucial importance of maintaining a credible pre-determined forward locations sometimes hundreds of kiair defence system at all times is not contested, often prior- lometres away. Communications between them with ‘Radio ity accorded to this vital aspect of national security in terms relays’ and mobile tropo-scatter equipment is patchy at best. of allocation of resources, urgency manifested in addressing The entire procedure involved in intercepting a low level inglaring shortcomings and even revamping of organisational truder where timely sequence of actions measured in seconds structures for better and smoother functioning has left much divide success from failure, remains manual. Long standing to be desired. In all its component parts—surveillance of air plans to introduce automation in the ‘control and reporting’ space (particularly at low level), communications, integration did not get off the ground for a variety of reasons. Operating and networking of sensors, point and area defence weapons— under severe environmental conditions, it is to the credit of the story is similar. field personnel (fighter controllers and maintenance crew) that The world has been witnessing the acceleration in growth of they have evolved effective operational procedures. However, Chinese air power for several years now. The area of contention their commendable ingenuity and diligence can neither hide where a conflict could occur between the two neighbouring na- the utter obsolescence of the entire arrangement nor its inadtions is largely mountainous which presents challenging prob- equacy against any meaningful air threat. lems to air defence. Although it is repeatedly stressed at all levels that India is prepared for any eventuality, honest evaluation FRESH LOOK AT INDUCTIONS of the country’s air defence capability in the mountains could Recent induction of aerostat radars has undoubtedly enhanced throw up some chilling facts. The terrain along most of India’s low level surveillance capability by an order of magnitude—but western borders with Pakistan is relatively more benign for de- besides the gross inadequacy of numbers, their survivability ployment of air defence resources. Appraisal of capability in the during a shooting war cannot be taken for granted. Therefore, western sector should give an idea of the overall state of play. Air although extremely useful, they cannot be a substitute for sespace at medium levels is monitored by long range THD 1955 cure surface based sensors. and medium power TRS 2215 radars. While both have done Induction of the first Air Borne Warning and Control Syscommendable duty over the last several decades, numbers have tem (AWACS) is another leap forward in capability. However, remained inadequate to cover the entire country’s airspace. any notion that it is the panacea of the Indian Air Force’s (IAF) low level surveillance problems is entirely misplaced. OUTDATED & OUTMODED This precious resource cannot and must not be employed for By contemporary standards, these are also legacy systems general area surveillance or to fill in gaps left by inadequate which would sooner rather than later merit honourable re- sensors on the ground. tirement. However, it is at low level that a large proportion Another case of drift over the years relates to the utof the threats are likely to emerge and that is where India’s ter obsolescence of the standard point defence SAM system Achilles Heel has remained for the last several decades. In employed to defend all forward airfields of the IAF, that is, the current arrangement, early warning of intruders at low Pechora SAM IIIs. Belonging to the analogue technology era, level is provided by Mobile Observers Flights equipped with cumbersome to deploy and requiring intensive maintenance, Issue 3 • 2010

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OEM

ROLLS-ROYCE

Rolls-Royce: A World Leader

PHOTOGRAPH: ROLLS-ROYCE

olls-Royce is a world-leading provider of DH-89 aircraft operated by Tata Airlines power systems and services on land, at sea - the forerunner to Air India. and in the air, with an established strong A long-standing aerospace partposition in all its global markets. It has a broad nership with Hindustan Aeronautics customer base comprising more than 600 airLimited (HAL) in Bangalore is now in lines, 4,000 corporate and utility aircraft and heits 54th year. HAL is already a strategic licopter operators, 160 armed forces, more than supplier to Rolls-Royce as a component 2,000 marine customers, including 70 navies, manufacturer for the Rolls-Royce Trent and energy customers in nearly 120 countries, aero engine - the world’s most successwith an installed base of 54,000 gas turbines. ful turbofan engine. An engineering In India Rolls-Royce has a long and proud hiscentre with more than 500 engineers in THE TRENT 900 POWERS THE AIRBUS tory of partnership. Presently, key military aircraft Bangalore manages and develops the A380 AIRLINER powered by Rolls-Royce engines include the Jaggrowing volume of engineering servicuar and the Hawk Advanced Jet Trainer, while the es work the Group carries out in India. association with the Indian Air Force is more than 75 years old. RollsRolls-Royce priorities in India are to grow its presence locally Royce presence in India’s civil aerospace sector goes back to 1932 with focused partnerships and activities that are aligned with India’s when the company supplied Gipsy engines to power Dragon Rapide own developmental needs and customers’ future requirements. •

MILITARY AIR DEFENCE the system was always difficult to manage. However, a vast pool of highly skilled technicians kept it coasting along until about a decade ago when lack of essential spares and failure to find suitable substitutes seriously diminished its reliability. Consequently, the aging weapon system has been surviving on life support for the last several years. It is a telling comment that a small country like Poland which was operating the same equipment developed a comprehensive upgrade package centred on a digital transmitter/receiver block to replace the original magnetron based hardware. The new TX/RX coupled with other improvements has increased the target detection range by 44 per cent, while that for target tracking is improved by 21 per cent. The system also has far better ECCM capabilities. The size of a Polish SAM battalion has been reduced from 19 vehicles down to eight. The battalion is able to relocate to a new firing position in 20 to 25 minutes as against three hours or more required earlier. The upgrades (a standard practice with most weapon systems) have given the system a new lease of life. Polish Air Force received the first two upgraded units in 1999 and accepted the last one in 2004. Compare that with the DRDO. With its 50 laboratories employing some 5,000 scientists and an ‘Integrated Guided Missile Development Programme’ in motion since 1983, it couldn’t muster talent or attention to do what the Poles have done. That should raise the question as to why India remains bogged down and fails to see the writing on the wall. PROCESS OF EVOLUTION

Public memory is proverbially short but Purulia fiasco of 1995, when an An- 26 flew across the country to drop tonnes of lethal arms and ammunition should be a reminder of all that can go wrong even in peace time, if the system is not awake. In the 15 years that have elapsed since the incident, there is no doubt that much has changed for the better. Procedures have been tightened and process to upgrade the entire air defence apparatus has been set in motion in earnest. 19 new low level 30

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light weight radars have been contracted for and the first of them should be in operational service by 2011. The DRDO has successfully developed ‘Rohini’ 3-D multifunction medium range air surveillance radar and the first of these are already doing duty along the LAC. Government has given the go-ahead for the procurement of 18 SpyDer low-level quick-reaction missile systems from Israel which will help fill a crucial gap in point defence capabilities. DRDO has also entered into an agreement with Israel to jointly develop an advanced new-generation SAM system, capable of detecting and engaging targets at ranges of the order of 120-km or so. Increasing number of Su-30MKI air superiority fighters taking to the skies will strengthen ‘area defence’ capabilities significantly. The air force will also soon have an integrated air command and control system in place and even launch of its own satellite next year is on the cards. There are a host of other activities that are going on simultaneously to give air defence greater muscle. But that is not the point of this critique. The real issue is that in the tense environment, new threats are emerging all the time. Short Range Ballistic Missiles, cruise missiles, long range air-to-surface missiles with extremely potent warheads dot the landscape. The 26/11 Mumbai attacks is also a constant reminder of the enemy’s determination to find new ways to hurt the country grievously. Therefore, preparations towards warding off emerging threats have to remain an ongoing process. India needs to be alert and respond with alacrity if the country’s defences are to carry credibility. Wholesale change within a brief space of time is neither feasible nor desirable. Process of evolution inevitably involves plugging together modern state of the art and legacy systems. Recent actions to upgrade and enhance the country’s air defence tools to match existing and emerging threats appear earnest. One can only hope that the trend marks a permanent change of mindset in facing up to crucial issues of national security and not just a temporary burst to satisfy long felt needs. SP www.spsaviation.net

Q MILITARY

PROCUREMENT

Vadis?

Operational capability of the IAF is being adversely affected due to depleting force levels, obsolescence and lack of essential support systems

PHOTOGRAPH: ABHISHEK / SP GUIDE PUBNS

N A SEMINAR HELD REcoastal security. Operational capaBy Air Commodore (Retd) CENTLY IN DELHI, when bility of the IAF is being adversely S. Murugan, Bangalore Air Marshal P.K. Barbora, affected due to depleting force Vice Chief of Air Staff (VCAS), levels, obsolescence and lack of Indian Air Force (IAF) exessential support systems. It is no pressed grave concern on surprise that many knowledgeable deteriorating force levels vis-à-vis commentators on defence matters growing hostility in the region and tardy decision making seriously ask “Quo Vadis? Where are we heading?” at the level of the government in respect of procurement of weapon systems, he perhaps let the cat amongst the pigeons. RHETORIC VS REALITY Instead of highlighting steps taken by government to address While addressing the last Combined Commanders’ Conferproblems of national security, some ill informed commenta- ence, Prime Minister Dr Manmohan Singh is reported to have tors criticised Barbora for voicing his opinion in public while said, “The armed forces must be fully equipped to deal with in uniform. As the occupant of the number two slot in the IAF all threat scenarios, trained to fight anywhere, anytime and hierarchy, the VCAS is in a position to appreciate the current under any condition. Their ability to deal with non-traditional situation and the serious problems faced by the organisation threats must receive greater attention.” Despite such categoriin its drive towards modernisation. cal and authoritative statement by the top functionary of the Unfortunately, we find more sound bytes in the media government, we find that the reality on the ground is vastly about scams in defence deals rather than success stories different and, in the recent past, the record of re-equipping the related to induction of major weapon systems, especially, armed forces dismal. when force levels are dipping to alarming levels. Currently, During the last seven years, contracts concluded relate to the Indian Army has inadequate fire power due to inordi- government-to-government deals with no contract on procurenate delay in the procurement of the required mix of artil- ment of a major weapon system executed through the open lery guns to meet specific threats. The Indian Navy has tender system. There appears to be a state of paralysis prevailgrave deficiencies in the strength of its submarine fleet. ing at decision making levels of the government, perhaps on Recent breaches of security have revealed short falls in account of apprehensions created by allegations of irregulariIssue 3 • 2010

SP’S AVIATION

MILITARY PROCUREMENT ties and overt media interest in scams that have usually followed large defence deals. Much of it however is speculative in nature. Vendors are hassled by the cumbersome, convoluted and intimidating procedures evolved out of mistrust and poor understanding of the procurement processes. Some vendors have even been blacklisted in the past, creating a general scare. Prolonged inaction at the decision-making level could in due course undermine the operational capability and readiness state of the armed forces and consequently national security. Some changes in Defence Procurement Procedure (DPP) 2008 have been incorporated based on the results of investigations into and lessons learnt from the many controversies over procurement in the past. However, policy changes effected piece-meal serve as mere patch work. What is needed is a revision of policy in a holistic manner with complete understanding of processes involved in the development, production, procurement and induction of weapon systems that employ multiple and complex technologies . DROPPED DEADLINES

DPP 2008 stipulates time frame for various activities. Despite such a stipulation, it is ironical that no major weapon system has been contracted and inducted within the prescribed time limit. Obviously, there have been difficulties in complying with the laid down time frames. Time limits will be realistic in operations that are routine, deterministic and sequential, but do not work where there are uncertainties, lack of complete information and associated risks in taking decisions in complex situations. High value defence procurements have all these impediments. It is not surprising that decisions are either delayed inordinately or are not taken at all. Complex and elaborate administrative procedures also contribute to delay. Complex decisions involve procedures that are often cyclic and sometimes iterative to facilitate information exchange and there is often the need to obtain clarifications. Obviously, faceto-face meetings and discussions facilitate speedy, transparent information exchange and help mitigate associated risks due to uncertainties. Minutes are prepared immediately for record and accepted by all participants. For this methodology to be successful, the participants should not only be knowledgeable but also have requisite authority to take important decisions wherever required. PERFORMANCE & COST

To make a choice among competing weapon systems, there are three important factors to be considered by decision makers: performance of weapon system in various operational scenarios, the final life cycle costs of the system and the time frame within which the weapon system can be inducted. There are many possible trade-offs among these parameters. One can trade off between some aspects of performance and cost. In some of the ‘Make’ decisions involved in the development and manufacture projects, there may be trade-off between cost and time frame. Such trade-off studies should help decision makers at the highest level to make their choices in a highly transparent manner. The current crisis in procurement can be attributed to fear psychosis prevalent among the decision makers at different levels involved in this process. It has been reported that at present there are at least 38 cases pertaining to the defence acquisition process pending in courts. Adverse media pub32

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licity, unsubstantiated allegations, concocted and politically motivated stories with no means or opportunities for prompt denial by the concerned agencies contribute to such fear psychosis. The only remedy for such ills is full transparency of information. Except for some operational scenarios and studies involving potential enemies, all other aspects of acquisition process can be transparent. ENFORCING TRANSPARENCY

The Ministry of Defence (MoD) has blacklisted five firms already for alleged role in corrupt practices in defence acquisition deals. Blacklisting cannot solve the problem. For example, can firms like Boeing or Airbus be blacklisted by India without compromising national interests? The nation has a Defence Minister who is known for his clean image and zero tolerance for corrupt practices. The Defence Minister has asked for full transparency of information and actions in all defence deals. It is the turn of the Service Headquarters, Defence Ministry and the vendors to operationalise this concept. At every stage of acquisition, the Defence Ministry and Service Headquarters in consultation with the vendors should identify the information that should be made public to avoid situations that may lead to scams. Phases in the acquisition process like preparation of SQR, formulation of evaluation model, results of field trials and the final phase of comparison involving performance, costs and alternatives would require a high level of transparency. Penalty points can be imposed during evaluation if some vendors seek to hide such information and attempt to operate under web of secrecy or use external pressure. During meetings, all parties involved in the process should be encouraged to express their opinions freely and openly. WHERE THERE IS A WILL

Some commentators have expressed concern as the defence budget has dipped to around 2 per cent of the GDP. But in reality, the concern should be directed more towards delay in procurement of weapon systems required by the armed forces and efficient utilisation of the allocated funds. During the year 2006, on capital account, Defence Ministry surrendered Rs 3,000 crore on a capital allocation of Rs 37,000 crore. Similarly, Rs 3,750 crore remained unspent on a capital allocation of Rs 41,900 crore in 2007. In 2008, the MoD returned Rs 7,000 crore on a capital allocation of Rs 48,007 crore. From the statistics above, it appears that higher the allocation, more the funds surrendered as unspent. The obvious answer is that delays inherent in the procurement process should be eliminated. Further, one also should remember that a faulty budgeting process can also result in incorrect allocation of funds. Budgeting process is an allied function of planning and programming. In a continuation article, it is proposed to examine the process of budgeting for defence along with some problems faced in ‘Make’ decisions and inordinate delays involved with associated cost overruns. There is a need to broaden the indigenous defence industrial base to enhance competition. Measures needed to assign a major role to private sector in defence procurement and ensure a level playing field would also be dealt with as also the offset policy and problems connected with Foreign Direct Investment in defence industries and collaborations. SP www.spsaviation.net

SHOW REPORT SINGAPORE AIRSHOW Japan’s entry into the regional jet transport market is on target for a 2012 first flight and service entry two years later, stated a programme update delivered at the show. Preliminary design of the MRJ (Mitsubishi Regional Jet) has been completed with the benefit of feedback from potential customers; the external shape fixed; and sizing of major structural elements undertaken. Singapore based Stratech Systems announced launch of a JV with Aeronautics Ltd to market the Israeli firms’ unmanned systems in the Asia Pacific market and develop new surveillance technologies to be sold globally. The JV will both market and manufacture aeronautics products for the Asian market. Lufttransport AS and RUAG Aviation signed a sale and purchase agreement for one Do 228 New Generation aircraft. The aircraft will be used for passenger and cargo transport between Longyearbyen and gravel airfields at Svea and Ny Alesuand on the island of Svalbard Norway. Lufttransport AS will thus be the launch customer for the Do 228 New Generation in Europe. Do 228 New Generation is a multipurpose turboprop aircraft. Besides having the capacity to transport upto 19 passengers, the aircraft can be configured for various special mission roles like maritime surveillance, border and fishery patrol, oil pollution control and environmental research. The Commercial Aircraft Corporation of China (COMAC) and CFM International announced that the advanced new LEAP-X1C engine has been selected as the sole western power plant to launch the new C 919 single-aisle aircraft scheduled to enter commercial service in 2016.

END OF ROAD: RAAF F-111 AARDVARK PERFORMS “DUMP AND BURN” FOR THE LAST TIME

and state-of-the-art Collins Pro Line 21 avionics. Selex Galileo focused its attention on a number of key capability areas relevant to Southeast Asia. In the EW rotary wing arena, SELEX Galileo promoted the combat proven Helicopter Integrated Defensive Aids Suite (HIDAS), which delivers world class protection. In the maritime awareness domain, there were solutions ranging from its EO turrets integrating the leading ERICA Plus camera and radar, to the complete mission system Airborne tactical and Observation System (ATOS). The Company’s other displays included Active Electronically Scanned Array (AESA) comprising a family of surveillance radars for large platforms and light weights and compact solutions for UAS and helicopters such as PicoSAR. Northrop Grumman Corporation displayed a wide range of its global security capabilities and programmes including airborne early warning and control (AEW&C) systems, unmanned aerial vehicles (UAVs), fire control radars and infrared countermeasures. E-2D Advanced Hawkeye and the multi-role electronically scanned array (MESA) radar. The E2D Advanced Hawkeye programme has modernised the E-2 weapon system by providing new and more powerful radar PRODUCT EXHIBITS and other avionics systems to create an advanced AEW&C Global players across the globe showcased a range of their capability. The MESA surveillance radar is an advanced airproducts. Hawker Pacific showcased Hawker 4000 and new borne surveillance sensor and provides peninsular protecHawker 7550. The Hawker 4000 offers a top speed of 482 tion enabling sophisticated air-to-air and maritime coverage knots, a range of 3,200nm, a six foot standup cabin and one and integrated friend-or-foe identification. Northrop Grumof the most advanced avionics suites in any business jet. Like- man’s other displays included unmanned aircraft capability wise, the new Hawker 750 is a high performance, ultra-com- including the Broad Area Maritime Surveillance Unmanned fortable light-midsize business jet, offering the Aircraft System based on a maritime derivabest range and payload performance in its tive of the combat-proven RQ-4 Global Hawk class. The aircraft features a large cabin with unmanned aircraft with sensors, and the MQSTRENGTH REINSTATED: internal and external baggage compartments 8B Fire Scout vertical take-off and landing BOEING 737-800 NG OF GARUDA AIRLINES unmanned aerial vehicle. Bombardier Commercial Aircraft’s showcased its Q400 NextGen turboprop. The airliner is the most recent development in the evolution of the Q400 aircraft, and the advanced successor to the Dash 8/Q-Series family of aircraft. Revised in the same spirit as Bombardier’s CRJ NextGen aircraft family, the Q400 NextGen aircraft features an enhanced cabin environment with the introduction of LED lighting, new ceiling panels, dished window sidewalls and larger overhead luggage bins. These features combined with the Active Noise and Vibration Suppression (ANVS) system provides excellent cabin experience for passengers. 34

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SHOW REPORT SINGAPORE AIRSHOW DUO DISPLAY: F-16C AND APACHE OF RSAF DISPLAYING SPECIAL SYNERGY

Garuda Indonesia showcased Boeing next-generation 737-800 at Singapore Airshow. The Company highlighted its new livery and interior decor, using a Boeing Next-Generation 737-800 with blended winglets as the platform. Boeing has already delivered five 737-800s to Garuda Indonesia, which has 20 more on order. Yet another attraction of the show was the A330-200F dotted with small colourful patches that could lead to the wider application of decals in creating airline liveries, advertisements and other messages on aircraft. These patches use material from two new potential decal suppliers, and they are being evaluated for their resistance to normal wear and erosion during flight operations. While Israel’ Aerospace Industries’ Bedek group showed off its new concept for a multi-mission tanker transport based on used 767-200s, Singapore’s ST Engineering brought along with it almost every military product they have on offer. CONFERENCES & DISCUSSIONS

The Singapore Airshow featured a series of high level conferences dedicated to leading players in the global aviation industry. The Singapore Airshow Aviation Leadership Summit (SAALS) on ‘Battling the Crisis, Shaping the Future’, and The Asia Pacific Security Conference (APSEC) on the ‘The Evolution of Military

Power in the 21st Century’, were a few among the many conferences wherein representatives from civil aviation sectors, government, defence and aviation industry leaders and academicians participated. VISITORS’ DELIGHT

With the last two days of the event open to the public, the Singapore Airshow was not all business. People thronged to see the SAF aircraft like the Chinook, F-16 and the Apache, American planes like the C-130 cargo plane and KC-135 tanker (the flying petrol station), P-750 XSTOL propeller plane made in New Zealand. Visitors also queued up to have a view of the private jets from inside, TOUGH MACHINES: although many did that to avoid APACHE LONGBOW the scorching sun. OF RSAF FOR ALL OF YOU WHO MISSED THE SHOW

The next Airshow at Singapore is scheduled to be held from February 14 to 19, 2012, and will give you opportunities to explore and learn more about the cutting-edge technologies available worldwide. SP

For more photographs and video, visit

www.spsaviation.net Issue 3 • 2010

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MILITARY Asia-Pacific Defence expenditure to increase Defence Minister A.K. Antony while inaugurating the sixth edition of the biennial Defexpo 2010 in New Delhi said that, “India’s defence expenditure will increase in proportion with its economic growth rate, which is expected to be around eight to 10 per cent for the next two decades. India’s defence expenditure is 2.5 per cent of its GDP and the economy is expected to grow at eight to 10 per cent for the next two decades. The expenditure on defence in absolute terms is also bound to increase in equal proportion. India is thus expected to spend around $50 billion (Rs 2,31,425 crore) in next 20 years for acquiring weapons for its armed forces.” Antony further said that the increasing expenditure on defence will help the Indian industry to play a more “meaningful role” in the defence sector in the country. Emphasising the need for achieving high level of indigenisation in defence needs, Antony said, “Our quest for self-reliance will need cooperation between the public and private sector defence industry. We want public and private sector to work as close partners.” Indian Navy inducts MiG-29K carrier borne aircraft The Indian Navy’s new fighter aircraft, the MiG-29K was inducted on February 19 at a formal ceremony at INS Hansa, Vasco da Gama, Goa. The Defence Minister, A.K. Anthony, was the chief guest for the ceremony. The might of Naval Aviation was on displayboth in the air and on ground. In addition to the MiG-29K, the air display included a grand fly-past comprising of Sea Harrier, Ilyushin-38 (Sea Dragon), Chetak, Kiran and Dornier. The Sagar Pawan Aerobatic team also displayed its prowess in various breathtaking formation aerobatic manoeuvres. While talking about the capability of the aircraft the Commanding Officer of the air station at Goa where the aircraft were inducted said that despite the 36

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similarity in the nomenclature and appearance between the IAF’s MiG-29 and the Indian Navy’s MiG-29K, they are quite different from each other. The new MiG-29K belongs to the 4+ generation and is capable of fulfilling multiple roles. The new aircraft is more than 30 per cent heavier than the MiG29 B (IAF). The MIG-29K will be equipped with anti-aircraft Beyond Visual Range Missiles, guided Anti-Ship Missiles, ‘smart’ guided-bombs and rockets. IAI’s UAS to be employed in Afghanistan

ary. The tests will provide data to validate predictions of aircraft performance prior to flight testing at Naval Air Station Patuxent River, Md., later this year. During the monthlong series of tests, 18 different weapons configurations were loaded onto the test aircraft. For each test condition, external shakers induced vibration of the aircraft’s wings, stabilizer and stores to verify the stores’ effect on the P-8A’s fuselage. The aircraft’s response was measured with more than 100 accelerometers and other external devices. The Boeing P8 team completed a successful ground vibration test of the full aircraft, minus the weapons, in May 2009.

Europe Russia’s Fifth Generation fighter makes second flight The Canadian, French, German and Australian air forces and the Spanish army have all chosen to employ Israel Aerospace Industries’ (IAI) Unmanned Aerial Systems (UAS) to support their troops fighting in Afghanistan. The Canadian and the French air forces have both utilised IAI’s Heron UAS, while the Spanish army uses IAI’s Searcher III UAS. In addition, the Heron UAS will be operational with the German and Australian air forces in the coming months. The troops in Afghanistan rely heavily on these UASs, as they provide crucial intelligence, surveillance, and reconnaissance (ISR) information in real-time to commanders and directly to front line soldiers.

Americas Boeing completes P-8A Ground Vibration Tests

Boeing successfully completed stores (weapons) ground vibration testing on P-8A Poseidon test aircraft T1 during Febru-

Issue 3 • 2010

Within a short span of about two weeks, Russia’s Fifth Generation fighter aircraft developed by Sukhoi Corporation under its highly classified PAK- FA project, made its second successful flight in the country’s Far East. The flight carried out from the KNAAPO plant in Komsomolsk-on-Amur lasted 57-minutes, 10 minutes longer than its maiden flight on January 29 and the fighter was painted in the combat colours of the Russian Air Force, according to Interfax. This time also it was piloted by test-pilot Sergei Bogdan, who expressed satisfaction at the performance of the aircraft to be inducted by the Russian Air Force in 2015. Indian Air Force, which would acquire 50 single-seat fighters of the Russian version, would induct another 200 twoseater fighters beginning from 2016, according to reports. Under the 2007 intergovernmental agreement, Hindustan Aeronautics Ltd has been identified as the nodal agency in the project and a commercial deal on setting a Joint Venture

QuickRoundUp AGUSTAWESTLAND • AgustaWestland, a Finmeccanica company, has announced that Bristow Group Inc. has placed an order for four AW139 medium-twin helicopters to be used to perform offshore transport missions. The purchase adds to the previous one for three aircraft already delivered and further strengthens Bristow’s AW139 fleet and the relationship with AgustaWestland, reinforcing the continued expansion of the AW139 in the oil and gas industry. BOEING • The Boeing Company has delivered an E-4B National Airborne Operations Center aircraft to the US Air Force after 11 months of maintenance at Boeing’s Wichita facility. The aircraft returns to service in support of the centre’s mission - providing senior government and military decision makers with connected and protected air travel. The E-4B is a modified Boeing 747-200 that serves the US president, secretary of defense, and chairman of the Joint Chiefs of Staff. The Air Force fleet of four E-4Bs is stationed at Offutt Air Force Base, Neb. ELBIT SYSTEMS • Elbit Systems Ltd. has announced that it has been awarded a follow-on contract from the Israeli Ministry of Defense for the continuation of the GROB G-120-AI (Snunit) trainer aircraft operation programme, in service at the Israeli Air Force Flight Academy in Hatzerim. Under the new contract, Elbit Systems will operate the trainers for an additional period of ten years, starting in 2012, following the completion of the current programme. EUROCOPTER • American Eurocopter has announced that US Customs and Border Protection has entered into the first option year on the Light Enforcement Helicopter (LEH) contract and placed an order for six AS350B3s. This is the second order on the LEH contract that was awarded to American Eurocopter by the Department of Homeland Security in July 2008. The LEH contract with the Department of Homeland Security is a multi-year contract and Continued on page 38 www.spsaviation.net

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APPOINTMENTS BOEING The Boeing Board of directors has elected former US Trade representative Susan Schwab as its newest member. She will serve on the audit and finance committees. NORTHROP GRUMMAN Northrop Grumman Corporation has announced the appointment of David Reith as vice president of finance and controller for the company’s Electronic Systems sector, effective immediately. In his new position, Reith will provide controller oversight for the sector and will be responsible for all sector financial functions, including estimating and pricing, rates and budgets, government liaison, financial accounting and reporting, Sarbanes-Oxley compliance, programme planning and financial control,etc. BAE SYSTEMS The Board of BAE Systems plc has appointed Nick Rose as a non-executive director of the Company. Nick Rose is the Chief Financial Officer and a director of Diageo plc, the world’s leading premium drinks business. He was appointed to this position in 1999 and, in addition to his finance responsibilities is responsible for supply, procurement, strategy and IT on a global basis. GULFSTREAM Gulfstream Aerospace Corp., a wholly owned subsidiary of General Dynamics, has named Dan Nale vice president of Advanced Aircraft Programmes, a new department. His duties as vice president of Mid-Cabin Programmes have been assigned to Stan Dixon, director, Mid-Cabin Programmes. Before joining Gulfstream, . LOCKHEED MARTIN Lockheed Martin Space Systems Company has named Mathew Mat J. Joyce vice president and programme manager for Ground-Based Midcourse Defense (GMD). 38

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is expected to be finalised during Prime Minister Vladimir Putin’s visit in mid-March.

CIVIL AVIATION Asia-Pacific Punjab to set up aviation MRO hub Punjab has become the first state in the country to setup Aviation Maintenance; Repair and Overhaul (MRO) hub at Rupnagar. Besides, a new Green field International Airport (Aerotropolis) near Ludhiana would come up in an area covering 3,000 acres and would be the first green-field international airport in north India to be set up in the private sector. The Aerotropolis would be built in the Private Sector by Bengal Aerotropolis and has Changi International Airport of Singapore as partner. The Aerotopolis, a modern age concept of a township-oriented airport, along the SingaporeFrankfurt model, would be developed with a total fiscal lay out of Rs 17,500 crore ($4 billion).

Europe Studying integration of UAVs into civil airspace

to assist in a variety of civil and para-civil applications. These include maritime patrol, border surveillance, agricultural monitoring, weather/atmospheric data collection, and high-altitude geological and infrastructure mapping.

INDUSTRY Asia-Pacific Boeing teams with HAL for P-8I Weapons Boeing announced on February 11 that it has formally signed a contract with Hindustan Aeronautics Limited (HAL) for the India-based manufacturer to provide weapons bay doors for eight P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft that will be delivered to the Indian navy. Under the terms, HAL will deliver the first set of doors to Boeing in Seattle by the end of the year. “Although HAL provides other equipment for P-8I through its avionics division in Hyderabad, this is the first P-8I offset package that Boeing has directly executed with India’s largest aerospace company,” said Vivek Lall, vice president and India country head, Boeing Defense, Space & Security. “We welcome HAL’s technical expertise and capabilities as well as the opportunity to increase our partnership on P-8I,” he said. HAL supplies fuselage parts for US fighter jet

The European Defence Agency (EDA) has selected an Astrium and EADS Defence & Security (DS) consortium to lead a sixmonth study to demonstrate that by using satellite communications it is feasible to integrate UAVs into civil airspace. DS has more than 30 years of expertise in UAVs, and Astrium, Europe’s largest space company, will determine how and what satellite-based services are needed to operate the UAVs safely in civil airspace. Today, UAVs are only operating in segregated airspace for military operations. Integrating UAVs safely into civil airspace would enable them to be used

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QuickRoundUp may result in orders for a total of 50 AS350B3s. This helicopter is well suited for surveillance missions and security patrol. EUROFIGHTER • Two German Eurofighter Typhoons have arrived in Bangalore to take part in the Indian MMRCA flight trials. EADS Defence and Security’s press release states that experienced test pilots of the Indian Air Force will test the Eurofighter Typhoon’s flight performance under specifically Indian conditions. The trials began on February 22 and will move on to Europe in April. LOCKHEED MARTIN • Lockheed Martin has successfully completed the paveway II Plus Laser Guided Bomb (LGB) F/A-18 qualification flight test programme. The paveway II Plus LGB uses an enhanced laser guidance package, significantly improving the precision of current paveway II LGBs. RAYTHEON • Raytheon Company’s AGM-65E2/L, the newest variant of the laser-guided Maverick missile, is on track to enter developmental and operational testing. The laser-guided Maverick missile is a direct-attack, air-to-ground precision munition used extensively by the US Air Force, Navy and Marine Corps in ongoing combat operations. The AGM-65E2 is the US Navy and US Marine Corps’ variant of the laserguided Maverick; the AGM-65L is the US Air Force variant. RUSSIAN HELICOPTERS

According to a news report, the public sector Hindustan Aeronautics Limited (HAL) has begun supplying fuselage parts for the formidable Boeing F/A18E/F Super Hornet fighter jet in what is seen as global recognition for the Indian aeronautical industry. HAL has already sent five sets of the Super Hornet’s gun bay doors (GBDs) to Boeing and 13 more

• Russian Helicopters showcased a lineup of rotorcraft built for the North American market and Latin America at Heli-Expo 2010, during February. Russian Helicopters is the holding company of the Russian Rotorcraft Industry. Russian rotorcraft are currently operated in 100 countries worldwide, including the USA and Canada. Light helicopters feature the Mi-34C1, Ka-226T, and Ansat. The Mi-17, Ka-32A11BC, and Mi-38 are in the medium segment, while the Mi-26T is a heavy helicopter. The Mi34C1, capable of the most complex aerobatics, is the helicopter of choice for amateur pilots and professional sports pilots. www.spsaviation.net

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SHOW CALENDAR 3 March – 7 March INDIA AVIATION 2010 Hyderabad, India www.india-aviation.in 10 March – 12 March MEXICAN BUSINESS AVIATION EXPO/HELIMEX Querétaro, Mexico www.mbaeexpo.com 11 March NBAA REGIONAL FORUM TWC Aviation, Van Nuys Airport, Van Nuys, CA www.nbaa.org 15 March – 17 March EUROPEAN AVIATION SAFETY SEMINAR Hotel Tivoli Lisboa, Lisbon, Portugal. www.flightsafety.org 16 March – 18 March AVIATION INDUSTRY EXPO Las Vegas Convention Center, Las Vegas, NV www.aviationindustryexpo.com 22 March – 23 March AIR SURVEILLANCE AND RECONNAISSANCE 2010 Waldorf Hilton, London, United Kingdom www.asarcevent.com 24 March – 25 March AVIONICS EUROPE Passenger Terminal Amsterdam (City Centre), Amsterdam, The Netherlands. www.avionics-event.com 28 March – 29 March AIR POWER MIDDLE EAST Crowne Plaza Hotel, Muscat, Oman. www.meairpower.com 29 March – 1 April MILITARY AIR ASSETS EXHIBITION & CONFERENCE Prime F Osborn Convention Center, Jacksonville, Florida, USA. www.maasec.com 7 April – 10 April AIRCRAFT ELECTRONICS ASSOCIATION CONVENTION AND TRADE SHOW Gaylord Palms Hotel and Convention Center, Orlando, Fla. www.aea.net

are under manufacture as part of an initial contract. The report quotes HAL chairman and managing director Ashok Nayak as saying that the company, which had plans to invest Rs 280 billion ($6 billion) to modernise its factories in the coming years, was looking for bigger business in the worldwide military and civil aviation market as leading aircraft manufacturers increase their share of the Indian market due to the country’s requirement of modern, fuel-efficient military and civil aircraft.Vivek Lall, vice president and country head for Boeing Defense, Space and Security (Boeing DSS) in New Delhi, told India Strategic that the current order to HAL was not tied to India buying the F-18 Super Hornet, but was part of a Boeing’s initiative to source $1billion (Rs 460 crores) worth of parts and services from HAL. Saab and Samtel on New Generation Head-Up Display Samtel Display Systems (SDS), India’s leading private sector aerospace company, has signed a Memorandum of Understanding (MoU) with Saab to jointly develop, manufacture and market RIGS Head-Up Displays (RIGS HUD) in India. The announcement was made by Micael Johansson, Senior Vice President and Head of Saab’s business area Electronic Defence Systems, and Puneet Kaura, Executive Director, SDS at the sixth Defexpo 2010, New Delhi. SDS is already in advanced stages of developing HUDs for fighter aircraft. Subsequent to this MoU, SDS will now also be involved in the development of RIGS HUD together with Saab.

SPACE Asia-Pacific First manned space mission for India by 2016 ISRO will send the first Indian manned space mission by 2016. After the huge bustle on the Chandrayaan, now India announces the first manned space mission by 2016. A senior official of the Indian Space Research Organisation (ISRO) in Bengaluru said that two as-

tronauts would take part. “We are preparing for the manned space flight,” informed ISRO Chairman K. Radhakrishnan. “We will design and develop the space module for the manned mission in the next four years,” he said. When India’s first manned space mission would be on the large by 2016, it will have Indian Air Force (IAF) personnel on board. Under the $2.5 billion (Rs 1150 crore) plan for ISRO manned space mission, India’s space agency has proposed to put two people into space orbit at 274 km above the earth for seven days. “We may have an IL-76 (Russian-built Illyushin76 transport aircraft) modified to familiarise our crew with zero gravity situation. The mission will be unique as the spacecraft will also have an ejection capsule which would help the crew eject safely in time of emergency,” the official added. Delhi has given its approval for the ISRO manned space mission and ISRO is getting ready to give it a boost by starting with setting up a full circled training facility in Bengaluru to train the astronauts.

Europe Successful launch for Tranquility Node and Cupola On February 8, US space shuttle Endeavour lifted off NASA’s Kennedy Space Center in Cape Canaveral, Florida, on the STS-130 mission with the Node 3 and Cupola on board – a module and a workstation both fully built in Thales Alenia Space’s plant in Turin. Node 3, dubbed ‘Tranquility’ by NASA, is the second connecting node module built by Thales Alenia Space and commissioned by the European Space Agency (ESA) as part of its Columbus Launch barter agreement with NASA. Its twin, Node 2 “Harmony”, also built in Turin, has been docked to the ISS since October 2007. This can-shaped module, about the size of a double-decker bus, will provide berthing locations for future modules or vehicles while expanding the habitable volume of the ISS by 75 cubic meters. It also features standardized interfaces to accommodate research racks and living quarters. •

QuickRoundUp SAGEM • French defense procurement agency DGA has awarded Sagem (Safran group) a contract for AASM (Armement Air-Sol Modulaire) modular air-to-ground weapons to be deployed by the French air force. The contract covers a long-term order for 3,400 AASMs, including an initial firm order for 680 units, development and integration of a latest-generation GPS module and qualification, and production engineering for the inertial/GPS/ laser terminal guidance version. Developed and produced by Sagem, the AASM weapon comprises a guidance kit and range augmentation kit integrated on a standard 250 kg bomb. SELEX GALILEO • SELEX Galileo has announced that Saab has selected the Infrtared Search & Track (IRST) system SKYWARD-G to equip Saab’s Gripen Next Generation (NG) fighter. SIKORSKY • Sikorsky Aerospace Services has announced at the Heli-Expo that the US State Department has entered into an IDIQ (indefinite delivery-indefinite quantity) agreement to purchase up to 110 modernised S-61 aircraft for passenger and cargo transport missions in support of its worldwide operations. Delivery of the first four modernised S-61 aircraft will support missions for the US Embassy in Afghanistan. ST ENGINEERING • ST Engineering has announced that its aerospace arm, ST Aerospace, has been awarded two maintenance contracts for six years by the Republic of Singapore Air Force. Work for both contracts will commence immediately. TEXTRON DEFENSE SYSTEMS • Textron Defense Systems, an operating unit of Textron Systems, a Textron Inc. company, has announced that its Directed Energy Weapons business line has successfully tested its Joint High-Power Solid State Laser (J-HPSSL) laboratory demonstration device at average power levels in excess of 100 kilowatts.

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nprecedented boom in the Indian aviation industry triggered in the latter half 2003 was spearheaded by Air Deccan and reinforced by the other newly established airlines in the private sector. However, in the wake of the boom, crippling deficiencies in the aviation infrastructure available in the country became evident. It was also abundantly clear that the government controlled aviation infrastructure sector, with growth rate hovering around a paltry five per cent per annum, would continue to lag far behind the galloping average annual rate of growth in civil air traffic that ranged between 25 and 30 per cent. The initial mismatch and the ever-widening chasm between requirement of infrastructure and its availability not only affected the airline industry, it also had a debilitating impact on business aviation, effectively stunting its growth. By either default or design, this segment of civil aviation, already groaning under the crushing burden of high import tariffs, complex procedures and regulatory provisions was relegated to the lowest priority. Perhaps of greater concern, however, was that the paucity of infrastructure could seriously undermine the optimism in even the high flying Indian airline industry. Seized of the problem, the Ministry of Civil Aviation (MoCA) announced a grandiose scheme to more than treble the number of civil airports in the country in a decade, taking the number to 400. The stated aim of the government was to have an airport available “within 50 km radius from any point in the country”. The plan included the development of a number of Greenfield airports, modernisation of the international airports in the four metros—Delhi, Mumbai, Kolkata and Chennai—and upgrade of existing airfields in Tier II and III cities across the country, especially in the Northeast. The plan also spoke of privately operated merchant airports, separate terminals for low cost carriers and business jets, heliports to unshackle operations by civil helicopters and massive upgrade of the antiquated Air Traffic Management system. Ambitious and requiring staggering investment, the plan envisioned speedy execution and called for participation by entrepreneurs in projects under Public Private Partnership (PPP) arrangement.

However, the sudden and steep rise in the price of Aviation Turbine Fuel in 2008, followed by global economic turmoil, delivered a devastating blow to the airline industry. Month after month airlines registered negative growth in air traffic and plummeting load factors resulting in financial distress that threatened their survival. Mergers and acquisitions followed with the total number of carriers in the country dwindling from 11 to seven. In the emerging situation, interest of the private entrepreneurs in airport development projects appeared to wane. To some extent, policies of the government in respect of PPP projects not particularly friendly to private investors also served as disincentive. The focus of the government shifted from development of aviation infrastructure to survival of the industry. Today, the dream of 400 operational airports continues to remain distant. Apart from Cochin International Airport, which is privately owned, only two Greenfields, at Hyderabad and Bangalore, have been commissioned so far and capacity of the latter is already saturated. Progressing at an agonisingly slow pace, work on the international airports at the four metros is far from complete. Most second tier airports earmarked for upgrade are yet to find takers in the private sector, leaving the Airport Authority of India saddled with the responsibility. Beginning October 2009, the scenario in the Indian aviation industry appears to be changing with domestic passenger traffic reflecting healthy and sustained growth. As compared to January 2009, in January 2010, Indian airlines registered a growth of 22.7 per cent in passenger traffic. Supported by a resurgent economy, it appears that for the airline industry, the worst is over. However, despite the urgency, given the tardy pace at which the aviation infrastructure has been growing over the last six years, there seems to be little cause for cheer for the aviation sector. Track record of efforts by the government so far indicates that inadequacy of aviation infrastructure may continue to be a major stumbling block for the Indian aviation industry in the foreseeable future. SP — Air Marshal (Retd) B.K. Pandey

ILLUSTRATION: MAMTA

Despite the urgency, given the tardy pace of infrastructure development over the last six years there seems to be little cause for cheer for the aviation sector

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Issue 3 • 2010

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