FOCUS WILL THE A220 BE THE RIGHT STEP IN THE RIGHT DIRECTION BY AIRBUS AND BOMBARDIER?

CruisingAugust 2018 `90 Volume XIII Issue 3 Heightswww.cruisingheights.in

FARNBOROUGH AIRSHOW 2018 REVIEW

SPICE MASTER Having tasted success with ethnic flavours – SpiceJet has expanded and touched a number of new domestic stops – Ajay Singh is getting ready to serve international destinations and even contemplating to set up a dedicated freighter unit. The clear advantage The clear advantage From the fastest ramp-up in commercial aviation history to achieving 1.5 million engine flight hours in less than two years. From the fastest ramp-up in commercial aviation history to Clearly, the LEAP engine is delivering. achieving 1.5 million engine flight hours in less than two years. Clearly, the LEAP engine is delivering. www.cfmaeroengines.com

CFM International is a 50/50 joint company between GE and Safran Aircraft Engines www.cfmaeroengines.com

CFM International is a 50/50 joint company between GE and Safran Aircraft Engines

C40094.035_CFM_TranspEngine_CruisingHeights_Aug18_273x205_v1.indd 1 20/07/2018 12:13 Cruising Heights AUGUST 2018 CONTENTS www.cruisingheights.in FEATURES 36 36 COVER STORY From a massive order of Boeing 737 Max, being the first operator of the 90-seater Q400s to being the launch customer of Boeing freighters in , SpiceJet is all set to nearly double its fleet in the coming years. Plus, an interview with the man at the helm, Ajay Singh, Chairman, SpiceJet.

28 SHOWCASE As the curtain fell on the 2018 Farnborough Airshow, exhibitors and attendees took stock of what was the most important aviation 28 7450 expo of the year. From ’s much-anticipated 737 Max 8 orders, to bursting order books of Airbus and Boeing, the E2 and A220 being showstoppers, the show had everything for everyone.

50 UPDATE Increasing the efficiency on ground, Saab’s Remote Tower concept 56 holds a lot of possibilities in India, considering the fact that India is upgrading its infrastructure in all domains for UDAN.

56 BUSINESS AVIATION Aircraft operators want airports to be open for business longer than usual and be better equipped in terms of refuelling facilities and parking bays. But, are we ready to meet this added need, considering the fact that the airports are already operating beyond capacity?

August 2018 3 Cruising Heights XXXXXXXXXXXXX CruisingHeights VOLUME XIII n NO 3 Letters to editor Editor-in-Chief K SRINIVASAN Managing Editor TIRTHANKAR GHOSH Letters to editor Consulting Editor S VASANTHAKRISHNAN The cover story,‘MAX8: Will it bring joy was a treat for all aviation geeks. We Assistant Editor to Jet?’ (Cruising Heights, July 2018), are definitely living in a time where was a well formulated one. Marking its connecting the last man in the last mile NIDHI SHARMA debut in the country with , the is becoming a reality day by day. With Senior Proof Reader aircraft holds a much larger importance airlines buying planes for their long haul RAJESH VAID for the once-reputed airline of the plans, flying over every possible ocean country — in its 26th year of operation and land to enhance connectivity seems Correspondents – that has seen its graph sinking over the to be reality. Merely goes to show that JAGRITI MONGA past few years. The story deliberated on the aviation sector is thriving. Packaged SHWETA MENON the fact that this delivery not just marked all together, this infographic was a visual NITISHA DUBEY a major milestone in the airline’s fleet treat. Kudos to the research work. Senior Designers renewal plan but was also a stepping * Ragini Verma, Surat NAGENDER DUBEY stone on its way towards profitable future MOHIT KANSAL quarters. Much is on stake for the airline as the competition gets tougher. With the Are we ready for the future? Your take Designer induction of this new generation modern on IATA-AGM of 2018 with ‘Ready for VIKAS CHANDRA aircraft, Jet Airways hopes to claim the the future’ (Cruising Heights, July leadership position it once held. 2018) gave an optimistic view. A lot was Picture Editor heard and said at the AGM. With Mr PRADEEP CHANDRA * Samyukta Sarin, Hyderabad Big Mouth Al Baker around, it was quite Photo Editor obvious! Also, the Editor’s note on the H C TIWARI The world knows about the record sexist comment of the Qatar Airways breaking stories and various anecdotes boss was quite a treat. However, the Staff Photographer about ’s Chattrapati Shivaji Spotlight section brilliantly summed up HEMANT RAWAT International Airport. The recently- the highlights of the AGM which saw the celebrated 1003 flights is a record that this leaders of the airlines gathered together Director single runway airport has made. However, to discuss the future of the sector for the RAJIV SINGH what is definitely a shocker for everyone readers. Aviation is indeed the future of Director (Marketing) is that there seems to be no way out for travel. RAKESH GERA this choked airport. That fact was well dealt in your Focus, ‘Choked, yet fighting * Punnet Verma, Bengaluru Subscription fit (Cruising Heights, July 2018) story. ALKA SHARMA The fact that this airport had been making Much to my delight, your Cargo section and breaking its own records seems ironic story ‘Rooting for a cause’ (Cruising Distribution when the figures released by Airports Heights, July 2018) was a great piece. PANKAJ KUMAR, BHUSAN KUMAR Authority of India (AAI) showed that it Catering to the huge Bengali diaspora Legal Advisor had been registering single digit growth and gastronomes around the major VASU SHARMA unlike all the other biggies in the business. cities, ‘Justmyroots.com’ seems to be Being the second busiest in the country, the reality of future, giving a tough time Executive Director this definitely left us scratching our heads to Swiggy, Zomato and all other online RENU MITTAL as to what could be the reason and how food delivery sites. It’s not merely a sales For advertising and sales enquiries, please contact: was it possible that even after this slow and service, but also delivery and that is +91-9810030533, 9810159332 pace, the airport managed to record such where air cargo comes in. Certainly, the Editorial & Marketing office: Newsline Publications Pvt. Ltd., a number? Well for that we definitely have cargo business has gone one level up and D-11(Basement) Nizamuddin East, to give credit to the operator. modern ventures of this sort holds much New –110 013, Tel: +91-11-41033381-82 of our attention. All information in CRUISING HEIGHTS is derived from * Brijesh Sharma, Mumbai sources we consider reliable. It is passed on to our * Sagrika Sengupta, readers without any responsibility on our part. Opinions/ views expressed by third parties in abstract or in interviews Cruising Heights’ Panorama (July are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part 2018) ‘Flying longer, flying faster’, (s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise All correspondence may be addressed to deal with all advertisements without explanation. All Editor, Cruising Heights, D-11 Basement, Nizamuddin East, New Delhi -110013, advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by OR mail to [email protected] any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket-IV, The total number of pages Mayur Vihar Phase–I, Delhi–91 and printed by him at Archna in this issue: 76 Printers, D-127, Okhla Indl Area Ph-1, New Delhi -110020

4 August 2018 www.cruisingheights.in

Cruising Heights FIRST DRAFT K SRINIVASAN, Editor-in-Chief IS IT ONLY A MATTER OF NUMBERS?

n March this year, Jet Airways, aircraft from a measly 340 to 14,628 – SpiceJet and Vistara wrote to a whopping 40 times more snags than the government outlining their originally reported. IndiGo said the concerns at the manner in which fantastic increase in numbers were data was being presented. They because the regulator had directed were in particular referring to that they be stricter in reporting theirI reservations over the details glitches. The 24,791 defects in 2017 of the “technical snags” that had had originally reflected 340 snags by been reported in airlines in the year IndiGo (with a fleet of 151 aircraft) 2017. Considering that the data was by the end of 2017, it reported. It was presented in Parliament, one would much lower than what was reported have thought it was sacred. by GoAir (32 aircraft), Vistara (17 Nothing of that sort. In fact, aircraft) and AirAsia (14 aircraft) with the airlines in their missive said fleet sizes at the end of 2017. that the data was actually creating Earlier last year MIAL (Mumbai “false illusion” on the state of safety International Airport Ltd) had of airlines. “Reporting of snags and suspended two of its executives after defects is mandatory in India and internal enquiries found that there INDIGO REVISED accurate reporting of such snags is had been hanky-panky in measuring THE NUMBER OF in interest of passenger and aviation On-time Performances (OTP) of safety. We request you to get this airlines. At that point in time, it was SNAGS IN ITS matter investigated by DGCA IndiGo that had questioned the OTP. AIRCRAFT FROM (Directorate General of Civil Aviation) IndiGo's had raised questions A MEASLY 340 so that accurate information may be about the OTP and said outright that TO 14,628 - A made available to the travelling public. it was open to tampering. The inquiry WHOPPING 40 It seems apparent that the number had found incorrect entries, DGCA TIMES MORE of technical snags being reported by ordered its own enquiry and the SNAGS THAN various airlines is inaccurate. This suspensions followed. SpiceJet at that discrepancy and misreporting of time had opposed the enquiry and ORIGINALLY data is leading to false illusion of the IndiGo had said, why oppose if the REPORTED. relative safety of some airlines over data was genuine. INDIGO SAID others,” SpiceJet’s Chairman Ajay More recently, the US Federal THE FANTASTIC Singh; Jet Airways’ CEO Vinay Dube Aviation Authority (FAA) decided to INCREASE IN and Vistaras CEO Leslie Thng said in have another audit of the DGCA – NUMBERS WERE their joint letter to Minister of State the third since 2013 and a record of BECAUSE THE for Civil Aviation, Jayant Sinha on sorts. As the Times of India rightly March 28. Earlier on March 13, Sinha, pointed out: “The regulatory oversight REGULATOR HAD in a written reply in the Rajya Sabha of Indian aviation — whose job is to DIRECTED THAT had said that airlines reported more ensure people fly here safely — seems THEY BE STRICTER than 24,700 technical snags last year. to be constantly under the scanner IN REPORTING Cut to July this year, IndiGo of leading international agencies. GLITCHES. revised the number of snags in its The United States’ Federal Aviation

6 August 2018 www.cruisingheights.in XXXXXXXX Cruising Heights

Administration (FAA) is going to audit the Directorate General of Civil Aviation (DGCA) for the third time since 2013. The latest FAA audit comes after the Indian regulator underwent an audit by the International Civil Aviation Organisation (ICAO) last November. The fear of international agencies mainly stems from a feeling India has in last decade not taken steps to strengthen its regulatory aviation secretary said ‘unnatural’, but TIME TO TAKE AN INITIATIVE: The Minister of framework even as air traffic has even as every segment of the country’s State for Civil Aviation, Jayant Sinha along with the exploded in the country and the lack tottering civil aviation infrastructure Secretary, Ministry of Civil Aviation, R N Choubey of technical experts heading this was upgraded, the DGCA has been briefing the Press on the Regional Connectivity Scheme. Similar to the move for connectivity, a agency.” an area of neglect. While it continues move has to be taken to separate the ATC from the Perhaps, most people have to totter from one crisis to another, it Airports Authority of India. forgotten that post the first of these is now going to be saddled with the three audits in 2013, the FAA had very additional chore of monitoring the Air publicly announced a downgrading Traffic Controllers. of India’s safety ranking, primarily Since the middle of the last decade, because we had failed to strengthen the government has been talking about our aviation safety oversight a Civil Aviation Authority (CAA) that mechanism. This came after multiple will address all issues in a professional such warnings between 2004-2010. manner. The CAA is long overdue and At that time the government took Mr Rajiv Nayan Choubey, Secretary, multiple steps to beef up the DGCA, Civil Aviation will do the sector a including appointing badly-needed world of good if he can initiate the staff. In April 2015, FAA restored the process for its formation. ranking. The events mentioned above also Clearly all that has come to nought reflect badly on IndiGo that it has had if one looks at the observations in the to revise the number of glitches on present case. its aircraft not by 40 per cent but by a If one connects the dots of the multiple of 40 to the original number. ICAO and FAA audit, the IndiGo Surely, a world class airline that has re-evaluation of its snags and the over a 1000 flights a day will have correction of the OTP, there is only glitches and shouldn’t be coy about one conclusion that one can draw: acknowledging them. Why should it the DGCA is in slumber. Any good require peer pressure to do so? regulatory authority will have a IndiGo can do much better. And FOCUS WILL THE A220 BE THE RIGHT STEP IN THE RIGHT DIRECTION BY AIRBUS AND BOMBARDIER? mechanism of review and assessment the DGCA can, of course, do much, CruisingAugust 2018 `90 Volume XIII Issue 3 Heightswww.cruisingheights.in that is not dependent on complaints much better. FARNBOROUGH AIRSHOW 2018 from peers and end-users. It will have a REVIEW system of regeneration and evaluation that is institutional. Unfortunately, that isn’t the case with the DGCA. It is SPICE simply acting as a post office that has MASTER become a processing centre of data Having tasted success with ethnic flavours – SpiceJet has expanded and touched a number of new domestic stops – Ajay Singh is getting ready to serve international destinations and transmitted to them. even contemplating to set up a dedicated freighter unit. There is no doubt that the year on [email protected] year growth in Indian aviation has been COVER PHOTO unprecedented and as one former civil COURTESY : SPICEJET

www.cruisingheights.in August 2018 7 Cruising Heights SOCIAL INDEX

Social media is incredibly facile, often delectable, sometimes uncomfortable and at times, distressing. We hope to get some slices from a platform that now engulfs everyone's life. And if Instagram you want to know what we are thinking, please follow us MIKA, WHAT A GOLGAPPA ! INDEX @cruisingheights YOUTUBE

‘STAR-STUDDED’ PRE-FLIGHT SAFETY VIDEO

It’s back! The second The Golgappa award of the month has to go to Mika instalment of British Airways Singh. Now having a good ‘star-studded’ pre-flight safety voice or numbers under video. After the success of last your belt isn’t enough, you need some class. Our year’s safety video, Chabuddy Golgappa of the month G returns along with iconic simply has none. His idea of celebrities such as Sir Michael style was to book an entire Emirates business class Caine, Olivia Colman and Joanna Lumley. They are auditioning and cabin and put out a video they are funny. See it and have a laugh ! of his great achievement. Yuk…k. What a Golgappa.

FACEBOOK Twitter

GIFT OF KINDNESS A BOLD ACT BLACK AND HIV POSITIVE?

“Mango cannot allow you to work with us‚ you are black When Elin Ersson, a Swedish student, and HIV positive. That is just learned that an Afghan man was being too much for us.” The scan- deported from Sweden on a flight from dalous text message was Gothenburg to Istanbul, she decided sent by one of Mango air- to act. Buying a ticket for the flight, she line’s employees to another refused to sit down or deplane until the staff. The whole episode has Poverty has its own challenges and a deportee was removed from the flight. become a whodunit? school teacher chose to tell one of her co-passengers the travails of a life with THE GOOD SAMARTIAN little cash. How was she to know that Clara you are a darling! At 15, this spunky young girl travelling her story would have a life changing with her mother from Boston to LA on Air Alaska chipped in impact? It was as if the dam had burst. to help a blind and deaf passenger after a PA announcement One, then another, then another, left asking for help with sign language on a cross-country flight. Clara, who began to learn sign language only about a year ago, right and centre, moved by her story, took Cook's hand and unlocked – letter by letter – to understand left her money to make her day and his wishes: for water, arrival time information and much more. make life better for her students. Thank you Clara, well you are a peach of a girl!

8 August 2018 www.cruisingheights.in FACTS & FIGURES Cruising Heights QUOTE MARTIAL ) 48,000 “…With all due respect to our engine partners, I think they saved money in the Airbus forecasts the wrong places in critical phases. Investment in testing has not been sufficient.” world’s passenger fleet will more than double to 1) TOM ENDERS, CEO, Airbus, speaking out about the problems Airbus’ planes have been facing 48,000 aircraft in 20 years with engines. with traffic growing at a —————— resilient 4.4 per cent per year, according to the “Competition will always be there and we will have to embrace the competition. This (the Global Market Forecast India market) is not a saturated market but one whose demand will only increase.” 2018-2037. ——————— 2) LESLIE THNG, CEO, Vistara, on the airline’s growth plans and the competition it faces.

—————— 42,730 Boeing in its Commercial Market Outlook lifted its “The power of countries comes from the power of their companies. Turkish Airlines long-term forecast for offers unique value to Turkey as the power of the airline strengthens the power of commercial airplanes as our country day by day.” Moreover, Turkish Airlines directly serves Turkey’s open rising passenger traffic door policies.” and upcoming airplane retirements drive the need 3) M ILKER AYCI, Chairman of the Board and the Executive Committee, Turkish Airlines on what for 42,730 new jets over it means for his country to have a strong national airline. the next 20 years. —————— ———————

“We’re a business first and foremost. But delivering for our customers is ultimately 10,550 how we deliver for our shareholders. I think all airlines are acutely aware that their There will be a demand for 10,550 new aircraft with job is connecting people.” up to 150 seats worldwide, 4) ALAN JOYCE, CEO, Qantas Group on any airline’s primary function. over the next 20 years, ac- cording to forecasts from —————— Embraer. The in-service fleet is set to increase to “It’s discouraging when you sit around a table and you look and you realise there 16,000 aircraft, up from aren’t more women in the room or people of colour, without quite understanding the 9,000 aircraft currently. why, because you look around and there’s nothing in that room that a woman ——————— couldn’t do as well as a man.” 3,020 5) JOANNA GERAGHTY, President and COO, JetBlue on gender parity in aviation management. ATR, in its new Market Forecast (2018-2037), estimates a market for 3,020 turboprop aircraft in the next 20 years. The 1 2 3 4 5 expected demand for turboprops over the next two decades confirms their healthy position in the up- to-90-seat regional market. ——————— `294+mn More than `294.1 mn was spent on using the Indian Air Force's transport aircraft — the C-17 and the C-130J Super Hercules — to ferry newly-issued `2,000 and `500 currency notes post-demonetisation.

www.cruisingheights.in August 2018 9 Cruising Heights COLD STATS Port Blair is most punctual Indian airport! Indira Gandhi International Airport Netaji Subhas Chandra Rank: 451 Bose International Airport Annual OTP: 70.7 Rank: 270 No. of Operation: 445,777 Annual OTP: 79.3 Star Rating: 2 No. of Operation: 148,608 Star Rating: 3 Delhi

Kolkata

Rajiv Gandhi International Airport Rank: 246 Annual OTP: 79.9 No. of Operation: 154,968 Star Rating: 3

Chennai Mumbai International Airport Hyderabad Rank: 255 Annual OTP: 79.8 No. of Operation: 157,326 Star Rating: 3 Bengaluru Chatrapati Shivaji International Airport Rank: 509 Port Blair Annual OTP: 60.0 No. of Operation: 320,115 Star Rating: 1 Veer Savarkar International Airport Rank: 65 Annual OTP: 84.6 Kempegowda No. of Operation: 10,596 International Airport Star Rating: 4 Rank: 262 Annual OTP: 79.6 No. of Operation: 204,513 Star Rating: 3 10 August 2018 www.cruisingheights.in COLD STATS Cruising Heights

Airline toppers and followers orld-class airport but poor punctuality record! WChhatrapati Shivaji International Airport in Mumbai, the second busiest in the country, fared miserably in flight punctuality 01 as it was ranked the fifth least punctual airport in the world with 60 per cent On Time Performance (OTP), just ahead Jakarta Soekarno- Hatta Airport in Indonesia (58.5 per cent) and Islamabad airport (56.9 02 per cent). This is as per the findings of a report of 513 airports and 65 airlines across the world by OAG, a British aviation intelligence firm. Delhi’s Indira Gandhi International airport, the 16th busiest in the world, fared slightly better, securing the 451st position in the list with 70.7 per cent OTP. Bengaluru, Chennai, and Hyderabad airports ranked 262, 255 and 246, respectively. Top position holders in the list were Nagoya Komaki Airport in Japan with 94.5 per cent annual OTP 14 and Hilo International Airport of Hawaii with 91.4 per cent OTP. With aims of connecting the last man to the last mile, Indian aviation has been in the run to 45 become the third largest aviation market in world by 2020. Still, none of the major Indian airports figured among the top 200 in OTP. The small Port Blair airport in the Andaman and Nicobar Islands got the worldwide rank of 65, thanks to its punctuality rate of 84.6 per cent, the study said. In the airlines’ category, got a low 131st position among the 137 airline worldwide 54 with only 58.4 per cent of its over 1.7 lakh flights on time. Adding another feather to the much talked “always on time performance” of 6E, IndiGo was ranked 14 with 82 per cent of its 3.6 lakh flights being on time during the period. SpiceJet ranked 131 45 and Jet Airways ranked 54 out of the 65 airlines. The airlines’ list was topped by Copa airlines of Panama with OTP of 88.2 per cent, followed by Qantas Airways of Australia with 85.7 per cent. The OAG study had a reference period of about one year between June 2017 to May 2018 and focussed on delays arising out of arrivals.

www.cruisingheights.in August 2018 11 Cruising Heights PANORAMA MONSOON MAYHEM

Mumbai cannot live without rain – or let us say the rains cannot live without flooding Mumbai. Reeling under the impact of heavy monsoon rains, Maximum Metro Mumbai has been going through its worst days. Every year, the city remains paralysed as roads, airport and rail tracks get submerged. This year too, heavy rains hit flight operations out of Mumbai’s Chhatrapati Shivaji International airport. A close look at the monsoon mayhem in Mumbai:

July 8, 2018: 216 departing flights 387 and 171 arriving flights delayed

July 9, 2018: 300 flights were delayed 300 by an average of 30 minutes

July 10, 2018: 89 flights arrived late by around 25 minutes; 318 407 departures suffered an av- erage delay of 53 minutes

July 11, 2018: 368 368 flights delayed

AIDING AIRLINES

Considering that the rain is unlikely to go away any time soon, airlines cautioned their passengers travelling to arrive well in time at the airport and even provided compensations to those who missed flights. Jet Airways, IndiGo and Vistara had provided relief by giving waivers on cancellation of flights and ac- commodation to the ones who had missed their flight.

12 August 2018 www.cruisingheights.in aircraft groundand vehicles movements. infrastructure, SAGA provides real-time situational awareness over deploymentthe of anand surface airport area terminal surveillance sisting authorities an to tackle impending emergency. Together with monitor real ground time movement and arriving air traffic, thus as- softwarethe — only the one country into have done can so—which Surface installed Awareness airport the Guidance at (SAGA) Airport havehardairport struggling to expectations. been the meet Recently, extend that many installations done to maintain efficiency the the at The force of nature has pushedthe operation to of such airport an NATURE VSTECHNOLOGY

It was a lucky escape for flight (IX213 Vijayawada-Mumbai) when it overshot the runway of the airport amidst heavy rain on July 10, 2018. The aircraft stopped 10 feet beyond the runway end on the paved stop way with maximum brakes, due to the slippery conditions caused by the inclement weather. www.cruisingheights.in

BUSINESS STANDARD on rain. the leading to huge delays, diversions, go-arounds and cancellations. Blame it all Flights were landing on and offfrom taking andsecondary shorterrunway, a The mishap led to a temporary suspension all of operations the at airport. runway conditions caused due to heavy rains,” SpiceJet said statement. inthe overshot runway the and off skidded intothe unpaved surface due to wet using safety slides-- and to taken “During hall. arrival the landing aircraft the Runway 27and got stuck mud. inthe 183passengers All were deplaned safely-- SpiceJet aircraftfrom (SG703 Varanasi Delhi) to overshot Mumbai airport 2017 SAGA! celled oncelled July 31as well due to water of logging runways. the opened on July 28morning. In numerous fact, flights were indefinitely can- submerged Instrument Landing System equipment. Thesubsequently airports hours of because runways, heavythe flooding on extremelypoorvisibility and was for first the everthattime Mumbai was for closed airport morethan 30 more than 20,000vehicles and over houses damaged 1lakh or under water. It landslides, outbreak more of diseases, than 24,000animal carcasses, and left rain on Mumbai’s suburbs, bringing city the to its It knees. brought inits wake, Mumbai came to astandstill. Acloudburst had released at least 944mmof July 26,2005,now is, incontext always for used day the city the when of THE DAYMUMBAISTOPPED PANORAMA Cruising August 2018 Heights 13 MUMBAI LIVE

HIVEMINER.COM Cruising Heights DIGEST NEWSDIGEST DGCA Passengers carried by domestic airlines during Jan-Jun 2018 were June: More fliers 21.95 684.83 lakhs as against 561.55 lakhs per cent during the corresponding period of previous year thereby registering a but low load factors Jan-June growth of 21.95 per cent Even though it was the end of the tourist 2018

season, growth continued for the month. 2018

The passenger load factor for the month, Passenger however, saw a declining trend. 684.83 Growth 561.55 he skies were busy in June as figures put out by Growth: Directorate General of Civil Aviation (DGCA) 2017 YoY point out that the number of passengers carried YoY = +21.95 % 2017 MoM Tby domestic airlines during January-June 2018 MoM = +18.36 % was 684.83 lakhs as against 561.55 lakhs during the 95.68 113.25 corresponding period of previous year: a growth of Pax Carried (in Lakhs) 21.95 per cent. 2018 The passenger load factor (PLF) in the month, however, showed a declining trend primarily due to the end of tourist season. At 93.3 per cent, SpiceJet recorded 100 June 94.8 93.3 91.0 89.2 89.7 88.6 the highest passenger load factor in domestic flights, 88.3 May 85.7 84.8

90 82.7 80.4 79.0 81.3 80.9 80.2 78.8 79.6 followed by Go Air at 88.6 per cent; IndiGo at 88.3 per 79.5 75.1 cent; Vistara at 84.8 per cent; Air India at 80.9 per cent; 80 74.0 Jet Lite 79.6 per cent; Jet Airways 79.5 per cent; Trujet 79 70 per cent; Zoon Air 78.8 per cent; Air Asia 74 per cent; 44.7 per cent and 33.5 per cent. 60

The overall cancellation rate of scheduled domestic 50 48.7 airlines for the month was 0.97 per cent with Air Deccan 44.7 33.5 being the worst offender with 41.41 per cent cancellation 40 32.1 rate. Others were Air Odisha with 32.14 per cent; Zoom 30 Air with 15.56 per cent and Air India with 2.72 per cent 20 among others. The major reasons for cancellation were miscellaneous issues with 35; weather-related with 28.1 10 per cent; technical 28 per cent; commercial 5.8 per cent Passenger Load Factor (in percentage) and operational 3 per cent. Air India Jet JetLite Spicejet Go Air IndiGo Air Vistara Trujet Air For June 2018, a total of 677 passenger-related Airways Asia Air Deccan Odisha complaints were received by scheduled domestic airlines. Air Odisha received the maximum complaints customers who flew with IndiGo in June 2018 and voted us as with 42.7 per cent. Of the total complaints, 29.2 per the ‘Best Low-Cost Airline in Central Asia & India’ at the Skytrax cent were flight-related problems; 27.5 per cent due to World Airline Awards 2018 for the 9th consecutive year. Reflecting baggage issues and 24.7 per cent were customer service- on the 12 years of our remarkable journey, one thing that remains related. constant has been our simple promise of being on-time, offering In on-time performance (OTP) of scheduled low fares and providing a courteous and hassle-free service,” said domestic flights in four metros, viz. Bengaluru, Delhi, William Boulter, Chief Commercial Officer, IndiGo. Hyderabad and Mumbai, IndiGo managed to top However, ICRA is of the opinion that domestic air passenger again with 84.1 per cent, as the data stated, followed traffic slowed down from Q4 FY2017 onwards, after reporting by SpiceJet with 81.2 per cent; Jet Airways and Jet Lite a robust Y-o-Y growth above 20 per cent for eight quarters. The with 78.8 per cent; Vistara with 78.2 per cent; GoAir primary reasons for moderation in growth were slowdown in with 76.5 per cent and Air India (Domestic) with 68.5 capacity addition by key players due to technical glitches faced by per cent. “The fact that our on time performance has some of the airlines, efforts at improving yields by the airlines as improved from 80.0 per cent in May to 84.1 per cent well as high base effect. Additionally, some of the smaller players in June, 2018 is due to the service orientation of our had been wiped out during the period, moderating the growth teams and our customers’ unrelenting support. We are marginally. The saving grace, however, was the robust PLFs also delighted to maintain one of the lowest passenger registered on the back of adequate demand which supported the complaint ratios in the month of June. We thank our performance.

14 August 2018 www.cruisingheights.in DIGEST Cruising Heights And the award goes to…

IndiGo scored one more win. It is the Best Low-Cost in Central Asia/India, chosen by Skytrax for World Airline Awards 2018. The others in the list: Singapore Airlines: World’s Best; AirAsia: World’s Best Low-Cost and Best Low-Cost in Asia; Norwegian Air Shuttle or simply Norwegian: World's best Long Haul Low-Cost. Singapore Airlines has been named the World’s Number 1 airline, sending 2017, 2015, 2012, 2011 winner Qatar Airways to Number 2. Singapore welcomed its climb back to the top spot after a gap of 10 years (it last received the accolade in 2008) at the Skytrax award. Not just Airline of the Year, the 2018 Skytrax World Airline Awards saw Singapore Airlines winning the World’s Best First Class, Best Airline in Asia and Best First Class Airline Seat. Winning it again— for the ninth consecutive year-- IndiGo, India’s largest low-cost airline, was named as the ‘Best Low Cost Airline in Central Asia & India’ at the Skytrax awards. The airline has remained focused all these years on its philosophy of offering fares that are low, flights that are on time, and a courteous, hassle-free travel experience. Others in the list were: SpiceJet at Number 2 and Go Air at Number 3. Award categories included best Low-Cost airline, best cabin crew, best onboard catering and best First Class airlines and were broken down by region and class. The awards were – as usual – dominated by Asian and Middle Eastern carriers, with European and US-based airlines lagging behind. Some of the winners are:

Best Airline Staff in Central World’s Best Airline: Singapore Airlines World’s Best Low-Cost Airline: AirAsia Asia/India: Vistara

Best Low-Cost Airlines in Central Asia/India: IndiGo World’s Best Business Class: Qatar Airways World’s Best Economy Class: Thai Airways

Best Inflight Entertainment: World’s Best : Bangkok Airways Best Airline in Central Asia/India: Air Astana Emirates

www.cruisingheights.in August 2018 15 Cruising Heights DIGEST

PILOT SHORTAGE 635,000 and counting Boeing said the commercial airline industry would require 635,000 new pilots over the next 20 years in response to a doubling of the fleet and record demand for air travel. next two decades. It is the first time that the The figure was included in Boeing’s2018- Boeing report has offered a view on these 2037 Boeing Pilot and Technician Outlook two sectors. In total, Boeing is projecting MONEY-SPINNERS published at EAA AirVenture Oshkosh. demand for 790,000 pilots between now and It is down slightly from the forecast 2037, which it said “represents double the NY-London, Mel-Sydney of 637,000 new commercial airline pilots current workforce and the most significant most lucrative contained in the 2017-2036 outlook. Boeing demand in the outlook’s nine-year history”. New York-London, Melbourne-Sydney and noted in its Business Environment Update The Boeing Commercial Market Outlook London-Dubai have topped the list of the report for 2018 that there were currently (CMO) for 2018-2037 revised upwards world’s most lucrative routes in terms of airline 295,000 active commercial pilots around the forecast for new commercial aircraft the world. More broadly, the 2018-2037 deliveries over the next two decades by 4.1 revenue. An analysis by air travel intelligence Pilot and Technician Outlook also forecast per cent to 42,730 aircraft. company OAG shows that British Airways’ (BA) the need for 96,000 business aviation pilots The commercial aviation fleet was John F Kennedy-London Heathrow route is and 59,000 civil helicopter pilots over the expected to grow to 48,540 aircraft by 2037. the world’s only billion-dollar route raking in $1.04 billion for the UK carrier between April FLIGHT BAN FLIGHT PERMITS 2017 and March 2018. That accounted for about six per cent of AI opposes 9W flights to LHR Thumbs down to BA’s total revenue and equated to $24,639 more bilaterals Jet Airways’ plans to start additional flights to an hour. Qantas came in second with its London have hit air pockets as Air India has with China Melbourne-Sydney operation. The airline conveyed to the government that its seat entitlement India turned down the request earned $854.7 million on the route, according to Heathrow airport cannot be allocated to the of Chinese government to to the analysis, or $24,237 an hour. Not far private carrier even though they remain unused for allow its carriers to add more behind was Emirates with $819.4 mn for the now. flights on the busy India- The national carrier had written letter to the China route. However, major London Heathrow-Dubai. This produced the civil aviation ministry advising it to push aside the domestic carriers IndiGo, Jet highest hourly revenue of any airline in the top Jet Airways’ proposal. The carrier has contended Airways, SpiceJet and GoAir, 10 at $25,308. Emirates was followed by that it is in the process of restructuring its flights to along with the national carrier Singapore Airlines with a revenue of $709.7 Heathrow airport and would soon be using all the Air India, strongly opposed mn on the London Heathrow-Singapore route. traffic rights given to it. Reportedly, Jet Airways had the move during a meeting struck a deal with its partner, KLM Royal Dutch with India’s Aviation Ministry Airlines, for slots at Heathrow airport and sought officials. the Indian government’s permission to launch new Carriers from each side NAME GAME flights. are allowed to operate 42 Taiwan 'disappointed' at Air India operates 21 flights from Mumbai and flights a week, according to name change Delhi to London. While it has regulatory approval the present quota system. for another seven flights to the British city, it has not The Chinese have used up Taiwan said that it was “deeply been flying them since 2016. Jet Airways is eyeing about 93 per cent of the disappointed” with Air India’s decision these flying rights arguing they remain unused for quota compared with Indian to comply with a Chinese demand quite some time. carriers’ 12 per cent. to change the name of Taiwan on its website, and said that it had lodged a formal note with Delhi over the move. TIE-UP India’s foreign ministry, however, justified its advice to Air India to Etihad, Gulf Air looking at cooperation change the name of Taiwan as being Two of the Gulf’s resurgent carriers operational review to narrow losses consistent with international norms have said they are looking at the in 2018 and bring the carrier back to and Indian policy. Since June 4, Air possibility of cooperation with other profitability and sustainable growth. India has started listing Taiwan as airlines including joining alliances in In a new strategy unveiled recently, 'Taipei, Taoyuan International Airport, an attempt to stem losses and reinvent Douglas said Etihad would now focus TPE, Chinese Taipei' on its website. their business models. on point to point flights that keep Etihad Aviation Group CEO Tony its focus on Abu Dhabi. Etihad has Douglas, who took over in January, sustained losses of nearly $3.5 billion said the airline plans to forge new owing to a strategy involving buying codeshare partnerships with airlines stakes in European carriers Alitalia and around the world as it continues an Airberlin that have since both filed for

16 August 2018 www.cruisingheights.in DIGEST Cruising Heights

INTERNATIONAL OPS CONCLUSION Vistara readies Asia MH370 mystery market launch culminates in new report Vistara plans to start international services It may be mentioned that Jet Airways The 1100-page report released by the in the second half of this year with a fleet had begun flying on foreign routes almost a official safety investigation team reiter- of 22 aircraft and the first overseas flight decade-and-a-half back. Industry watchers ated Malaysia’s assertion that the plane will be to South East Asia, according to its have said that the move by Vistara is set was deliberately diverted and flown for leadership. The airline said that it plans to to offer consumers more flying choices at over seven hours after severing com- operate flights to popular foreign tourist competitive ticket prices. Further, Vistara munications. Kok Soo Chon, Head of destinations of Bangkok, Phuket, Colombo could tap into the global expertise of one of the ICAO Annex 13 search team, told and Male. its founders, Singapore Airlines, as it gears mediapersons that investigators — from eight countries including Australia — Delhi will continue to be Vistara’s up to start international flights. “Vistara “have finally reached a consensus” about primary hub. However, the airline said may collaborate on areas such as revenue the final moments of MH370. that as it continued to expand network, sharing, frequent flyer programmes, lounge Chon said the team had concluded it would not rule out the possibility of facilities and codesharing of flights,” David that MH370 deviated from its path having secondary hubs for domestic and Lim, Singapore Airlines’ General Manager for and that the plane’s change in direction international operations. India, recently told mediapersons. over the Indian Ocean was made under manual control. “We can confirm the turn-back,” Dr Chon said. “We have car- SAFETY STAMPED NEW FLIGHTS ried out simulator sessions to determine how the aircraft turned back and we can Indonesian airlines no Philippine Airlines confirm that the turn-back was made, not under autopilot, but was made more in EU blacklist relooks India ops under manual control. The European Union has removed The archipelago of the Philippine all Indonesian airlines from its safety will soon be a direct flight away from blacklist. The EU directive provided all the airlines in Indonesia the Indian cities. The two countries have opportunity to apply to fly routes to now allowed 28 weekly flights between Europe. However, this is not of much their major cities and unlimited consequence as the only Indonesian frequencies between their smaller airline with the financial clout and cities. This is the first enhancement aircraft to fly long haul had already TOP OF THE LIST been removed from the blacklist of flying rights in more than a decade, progressively over the past few years. raising the earlier bilateral that allowed India top priority Garuda Indonesia is the only one only seven flights a week. market for KLM currently flying to the EU. While the number of Indian It was in October 2017 that KLM re- All airlines were banned back in tourists visiting the Philippines has 2007 after a spate of accidents and introduced flights to Mumbai after a since then Garuda and its budget arm been rising in recent times, there gap of over 16 years. Now, the airline Citilink, and others including AirAsia is no direct flight between the two has decided to give the Indian market Indonesia and Lion Air were gradually countries. Philippine Airlines is a high priority in global operations as removed from the blacklist. The planning to start direct flights from it has been registering 90 per cent oc- cupancy on its flights out of Mumbai decision followed an assessment visit by Delhi and Mumbai to Manila this year. EU officials earlier this year. and Delhi. Noting that India was “traditionally a market which has relatively high load insolvency. factors”, Pieter Elbers, President and Bahraini carrier Gulf Air’s CEO, KLM, had said on the sidelines Krešimir Kučko told reporters on of the recent annual meet of the In- the sidelines of ACI Europe & World ternational Air Transport Association general assembly, that the airline’s (IATA) in Sydney that, “our average new forward plans would involve load factor (from India market) is 90 more partnerships. per cent. So, in our network, (the place Appointed in November last year, of) India is placed high”. Kučko is vying to bring Gulf Air back “India has a very specific position to profitability after years of losses at with Star Alliance carriers Aegean because it has a very effective com- the carrier and a crisis of leadership Airlines and Turkish Airlines last bination of business traffic and the that saw the abrupt resignation of year and will likely look to grow those large Indian community in the world, its CEO last year. The airline signed partnerships with other carriers as it especially in the US, in Canada and we a number of codeshare partnerships increases its scope of operations. have perfect connections to that,” he added.

www.cruisingheights.in August 2018 17 Cruising Heights DIGEST

UPGRADE FLYING RETURNS Qatar's Qsuite arrives Ek, flydubai share in India loyalty programme Qatar Airways’ Qsuite, considered one of the best business class seats in the industry, is now available on flights to and from Mumbai and Bengaluru. “The Qsuite features the industry’s first-ever double bed available in business class, as well as private cabins for up to four people with privacy panels that stow away, allowing passengers in adjoining seats to create their own private room, a first of its kind in the industry,” said a release by the airline. Emirates and its low-cost Flights on the Mumbai and Bengaluru routes will be served by Boeing B777 aircraft, with one sister airline, flydubai, now aircraft flying daily to Mumbai and Bengaluru International Airport. share a customer loyalty Qsuite is currently available on select Qatar Airways’ Boeing 777-300ER, Airbus A350-900 and programme, the next stage A350-1000 aircraft. The expansion to Mumbai and Bengaluru follows the introduction of the product to in their expanded codeshare various destinations around the globe, including London, Paris, New York, Chicago, Houston, Shanghai announced in July last year. and Canberra. Emirates Skywards is the loyalty programme for both DISSOLVED airlines, while flydubai’s existing “Open” loyalty Alitalia out of Delta joint venture scheme has ceased to exist. “Open” members will Alitalia had been a part of the immunised ongoing restructuring for the move. be enrolled into Emirates Air France, KLM and Delta pact since 2010. In the filing with the US Department Skywards membership and But now, the Italian flag carrier is out of the of Transportation, applicants said that continue being rewarded expanded joint venture between Delta Air “Although the parties hope to implement when travelling with either Lines and its partners. The Italian carrier was metal-neutral cooperation with Alitalia in Emirates or flydubai, the not included in an amended joint venture the future, Alitalia is currently undergoing airlines said recently. application filed by Air France-KLM, Delta restructuring through the Italian bankruptcy Members will also be able and Virgin Atlantic with US authorities process, and its future ownership structure is to earn both Skywards towards July end, with the airlines citing its uncertain,” the applicants said. Miles and Tier Miles every The announcement, however, made no time they fly with Emirates, change to Alitalia’s position in the Skyteam “enhancing collection and alliance. spending opportunities”, Meanwhile, EasyJet’s chief executive flydubai said. As part confirmed the low-cost carrier’s continued of the arrangement, the interest in at least parts of Alitalia, after Italy’s two carriers are creating Transport Minister said the Italian airline will a shared network of remain under majority state control but needs codeshare routes to 240 a partner. destinations by 2022.

SPACE CONSTRAINTS BREXIT The loos are getting 'tighter' in US airlines Irish PM mocked over ‘ban’ comment A decision, which from the sense of economics, seems to be here to stay for a long time. US airlines are putting smaller lavatories The Brexit saga continued as Ireland’s PM Leo Varadkar was called on their planes. The vigorous demand for air travel in a backdrop an ‘airhead’, and Downing Street dismissed his threat to 'ban' British of rising labour costs and surge in fuel prices, has led many aircraft from Irish airspace in the event airlines to absorb as many passengers as they can into aircraft. of a no-deal Brexit. British PM Theresa Airlines, however, claim that the new restrooms are just May’s spokeswoman took on the Irish a few inches smaller than what fliers are used too. American PM with aggressive remarks. “It’s wrong Airlines is using a smaller lavatory supplied by Airbus on new to claim that Ireland could simply stop A321neos and remodelled older A321s to squeeze in more seats. the UK from flying over its land as a The airline is putting in diminutive restrooms made by Rockwell result of Brexit,” the spokeswoman Collins in over 300 Boeing 737 aircraft. said. “The reason we say that is because Gary Weissel, Managing Director of Tronos Aviation overflight rights are Ireland’s PM Leo Varadkar not guaranteed by Consulting had estimated that American could generate about the EU, rather by multilateral treaty which both ourselves and Ireland $4,00,000 a year for each seat it adds to a plane. The airline had have signed up to.” told investors sometime back that adding seats to its Boeing 737- 800 and Airbus A321 jets would bring in $500 million a year.

18 August 2018 www.cruisingheights.in DIGEST Cruising Heights

SAFETY 24 pilots suspended Twenty-four pilots involved in various cases of accidents and technical snags were either suspended or off-rostered during the last three years. Jayant Sinha, Minister of State for Civil Aviation, told the Upper House of Parliament that 58 aircraft maintenance engineers were also found “blameworthy for snag” due to maintenance error and were either suspended or issued warning. GROWTH With regard to technical snags and defects, he said the DGCA has laid down regulations and procedures wherein operators are required to monitor snags and take Truly Indian corrective actions on the “adverse trend”. “Based on the review of investigation report A lot of regional carriers in the during the last three years, 24 pilots were suspended/off-roastered and were released country have not managed to subsequently after undergoing corrective training,” Sinha said. However, according to official data, the number of near miss incidents in the Indian survive in the Indian environment. airspace declined to 28 last year. The count of near miss incidents touched 32 in 2016 So, the news that no-frills carrier before coming down to 28 last year. While 33 such incidents happened in 2014, the number TruJet, part of Hyderabad-based dropped to 25 in 2015. These figures are based on incidents reported to the DGCA. Turbo Megha Airways, is planning to induct seven more aircraft to MISHANDLE its existing fleet of five, comes as a stimulus for smaller airlines. No bags on carousel, Operationally profitable, TruJet is blame it on airlines now eyeing a pan-India expansion Complaints and concerns of domestic air by the end this fiscal. The regional passengers about luggage mishandling carrier, which has carried about show no signs of decline, with aviation 7.2 million passengers in the last regulator DGCA stating that 27.5 per cent of all complaints received in June were related three years, is also planning to to baggage. There was a rise of over 10 add 20 more destinations as part per cent in baggage-related complaints as of the Udan Phase 2 connectivity compared to the corresponding period last Presenting an airline category report scheme. “We plan to add 20 more year (16.6 per cent). In 2016, the figure was in July, the Ministry of Civil Aviation had destinations in the north and 19.7 per cent. revealed that between November, 2016 and eastern regions. Having established The complaints shot up from 21 per cent June 26, 2018, the airlines had received 763 our presence in the south, we are in April to 23.9 per cent in May and to 27.5 grievances related to baggage — the fourth per cent in June, the DGCA said, adding that highest after complaints about flight delays, looking at a pan-India foray by in June, the domestic airlines flew 17.57 ticket fares and check-in and boarding. the end of this fiscal,” CEO Vishok lakh more passengers at over 1.13 crore, It may be mentioned that according to Mansingh said. The airline now compared to 95.68 lakh in June last year, the recently released draft air passenger connects 14 major destinations in registering a growth of 18.36 per cent. citizen charter, airlines will have to pay south and west India between Tier- Some of the key reasons for mishandled `3,000 per kg to passengers for loss of 2 and Tier-3 cities. baggage were failure to load the bags onto baggage, `1,000 per kg for delay and Rs The airliner has been awarded the aircraft, tagging errors and technical 1,000 per kg for damage. The rule applies to issues. A system failure in the baggage both domestic and international flyers. 20 new routes under the Udan handling system at the IGI airport here had In its study for June, the DGCA said the scheme. With a fleet of five ATR-72 led to thousands of bags getting misplaced total number of complaints received was aircraft, the company will have over in March. Some of the misplaced bags 677. Of this, the highest (237 complaints) 12 ATR-72 aircraft by the end of the belonged to ministers as well. number were received against Air India. financial year.

DEADLINE quite clear that India was facing a severe crisis of pilots, especially commanders Extended permission and this would continue for a while. There are 290 expat pilots out of the for foreign pilots total 7,000 pilots with domestic airlines. The government has extended the Speculation is also there that the 2020- permission for foreign pilots to work end would not be the fixed deadline in Indian carriers by two years and has since the increasing number of flights shifted the deadline to phase them out would demand an adequate number of from this year-end to December 31, pilots. Experts claim that the numbers 2020. Industry watchers claimed that are just a conservative estimate and even more with the expansion of Indian this decision was taken as it became the requirement for pilots will increase carriers.

www.cruisingheights.in August 2018 19 Cruising Heights DIGEST

AUDIT WOES “FAA observations about DGCA will be addressed” According to America, India’s large and growing middle class is increasingly connected to international commerce, and bilateral trade has increased to over $126 billion, with the potential for significant growth in the aviation. However, the growth in air routes between India and US may be affected after the Federal Aviation Administration (FAA), which carried out a five-day audit of India’s Directorate General of Civil Aviation (DGCA), pointed out certain shortcomings related to regulatory and guidance material essential for ensuring air safety which will now INDEPENDENT REGULATOR have to be set right soon. DGCA said in an official statement that DGCA to regulate ATCs “time-bound action will be taken” on the observations made by the FAA. It further said With India’s score falling in the latest UN that the FAA, under its International Aviation aviation watchdog ICAO’s air safety oversight Safety Assessment (IASA) programme, audit, the government would soon empower conducted the audit between July 16 and July the DGCA to regulate air traffic controllers. 20 in areas covering aircraft operations, airworthiness and The International Civil Aviation Organisation licensing of pilots and technical staff. (ICAO) had carried out the Universal Safety DGCA did not elaborate on the observations or the concerns flagged by Oversight Audit Programme for India in the US regulator, but said the FAA team would come for a final consultation November 2017 and another team of the within 65 days wherein the DGCA shall present the action taken on the watchdog came in February this year. The observations. The FAA conducts the audits to determine whether the civil audit result showed that the country’s score aviation authority has the appropriate practices and manpower in place to declined to 57.44 per cent from 65.82 per cent oversee the safety of airlines that fly in and out of US airports. earlier, placing India below Pakistan, Nepal Failure to meet the FAA norms would mean that more flights by India's and many other nations. commercial airlines would not be permitted to the US. Besides, existing flights According to the government, the that land at US airports would be subjected to more stringent checks which decline was mainly due to ratings of air could result in delaying the turnaround time of aircraft. traffic controllers being given by the Airports Authority of India (AAI). However, Jayant Sinha, Minister of State for Civil Aviation, REGULATIONS R N Choubey, Secretary, Civil Aviation and Drones likely to fly in India from October senior DGCA officials emphasised that there Drones for civilian purposes were no safety concerns for the country's civil are likely to start flying in aviation space. Choubey said that it had been India from October onwards, decided that the DGCA would be carrying out regulatory and safety oversight of air as the Civil Aviation Ministry traffic controllers. The ICAO told the ministry expects to soon put in place that there was a need for an independent the regulatory framework for regulatory oversight by the DGCA on the AAI unmanned aerial vehicles. The with respect to air traffic controllers. use of drones by civilians is currently restricted by aviation NEW MODEL regulator DGCA. Bill seeks to amend ‘major Civil Aviation Secretary R N Choubey said the ministry is working on putting in place a system wherein registration and flying permission for civilian drones are airports’ definition done online. The government introduced a bill in the Lok At present, aircraft rules do not cover use of drones as well as their sale and Sabha (Lower House of Parliament) to amend purchase. In October 2014, the Directorate General of Civil Aviation (DGCA) had the Airports Economic Regulatory Authority restricted use of drones and unmanned aircraft system by civilians. In November (AERA) of India Act to allow a new model of 2017, the ministry came out with draft norms for operating drones for civilian bidding for airport concessions working on a purposes. pre-determined tariff or a lowest-tariff model. According to the draft regulations, drones would require unique identification The AERA had observed that, by following a numbers while nano drones — those weighing below 250 grams — would be cost-plus formula so far, airport operators were exempt from seeking one-time approval. Various restrictions have been proposed trying to increase tariff on various grounds. This to ensure that the drones are used only for valid purposes. There would be ‘no meant extra burden on flyers. drone zones’ that includes 50 kilometres from the international border. In 2016, the Supreme Court had spiked the airport development fee that was being levied by A 13-member task force, headed by Minister of State for Civil Aviation Jayant private airport developers in Delhi and Mumbai Sinha, is in the process of preparing a road map for the implementation of on both domestic and international fliers. unmanned aerial vehicle technology.

20 August 2018 www.cruisingheights.in DIGEST Cruising Heights

DUTY HOURS Longer hours for pilots and flight attendants? Pilots and flight attendants may now have to work longer hours after the DGCA amended its rules to allow airlines to extend duty timings of the crew during a medical emergency, a natural calamity, technical malfunction and unfavourable weather conditions. The DGCA has laid down flight duty time limitation (FDTL) and rest timings for pilots and flight attendants, which have to be followed mandatorily by all airlines to prevent fatigue-related safety issues. While the rules allowed airlines exemptions under exceptional circumstances, they did not define what those situations would be. The DGCA has now spelt out the circumstances during which airlines will be allowed to extend shift timings of their crew to “avoid inconvenience to passengers.”

GST WOES ASSET MOBILISATION Wrong to impose GST No objection over Air on international India’s building sale There is no opposition in selling off Air India’s air tickets: IATA iconic Nariman Point building by the employees IATA has strongly of Air India, according to the Ministry of Civil opposed levying of GST on Aviation (MoCA). This comes in a backdrop where international air tickets, the employees of Air India and its union have dubbing the taxation as opposed the government’s plan of disinvesting its “wrong” as it contravenes stake from Air India. many global agreements Air India’s 23-storey building at Nariman to which India is a party. Point in south Mumbai, which was the airline’s “It is wrong to apply GST headquarters, is a prime property that is predicted to international tickets. It to fetch high valuations. The property also fetched contravenes international — for the national carrier — close to `300 crore agreements to which India is a party,” Alexandre de Juniac, Director in the form of lease rent between 2012 and 2018. General and CEO, IATA, said. In a written reply in the Lok Sabha, MoCA Under the GST regime, tax at the rate of 5 per cent and 12 per cent said, “Employees have not yet submitted any is levied on economy and business class air tickets, respectively. written opposition to the sale of Air India building. According to de Juniac, GST was not the only issue when it comes to Monetisation of various assets has been initiated taxation in the aviation sector. “We are engaging with the government as per the Turn Around Plan (TAP) where the to resolve the tax-on-tax treatment of passenger fees and charges, as target was `5,000 crore on monetisation over a well as on invoicing and compliance matters,” he said. period of 10 years from FY 2013 onward.”

AIR FARES No upper ceiling on air fares However, the government has asked the airlines to maintain transparency and non- Minister of State for Civil Aviation Jayant discrimination. The Minister said national Sinha informed the Rajya Sabha that there carrier Air India was also selling aisle and was no upper ceiling on air fares as they had window seats at higher rates. been deregulated and premiums were being “This is a commercial practice. It is charged even by Air India for preferred done across the globe. If we have to run seats of aisle and window since this was a properly, then we have to practice this. The commercial practice. He said an airline and a middle seat is given at lower rate,” Sinha passenger enter a commercial contract when said. If someone wants comfort, it is up to the latter booked an airline ticket. the passenger to take an aisle, window or a Responding to members’ queries, Sinha business class seat after paying the premium. said, “The fares have been deregulated. The minister claimed that the “airfares in Flight services are provided based on the India are the lowest in the world and more terms of conditions entered in a commercial affordable if you buy tickets three months contract between a passenger and airline.” prior”.

www.cruisingheights.in August 2018 21 Cruising Heights DIGEST

AIRCRAFT ORDERS UNMANNED FLIGHTS India ahead of China Airbus plans unmanned Recent orders from India, according to jet manufacturers Airbus and Boeing, put the solar plane country ahead of China in the narrowbody Airbus has unveiled plans to aircraft order book. India, which has the manufacture a solar plane which third-largest aircraft order book (including will fly unmanned high above the widebody and narrowbody aircraft) after sky. The new Zephyr S plane will the US and China, now has more narrowbody orders than China, aviation consultants CAPA be built in the UK and provide India said in a report. surveillance and monitoring services “The India number still includes the (now defunct) order because officially it to complement traditional satellites, is still on Embraer’s books,” CAPA India said in a report that compared the fleet of Indian but at a lower level. airlines with that of others around the world. The plane will be able to fly CAPA expects another 120 aircraft orders in the next few weeks, including 60 for weeks at a time above weather narrowbody and 60 widebody planes, including options. India could place orders for conditions and conventional air another 50-60 widebody, as well as a large narrowbody order in the next one or two years, traffic, directly harnessing the sun’s it said. rays to remain aloft. To date, the Zephyr programme has been in a stage of development FLEET and prototypes have clocked up over 1,000 hours of flying time. Its Pax aircraft fleet to double by 2027 maiden industrial flight took place The passenger aircraft fleet in the Widebody jets accounted for 11 per this week from the US state of country is set to nearly double to 1,100 cent of the existing fleet and the rest Arizona and a landing date has yet planes by 2027, from around 600 at 14 per cent were regional jets. “Avolon to be confirmed. present, according to a report by global forecasts that India's current passenger Commercial scale production aircraft leasing firm, Avolon. It also said fleet will double to almost 1,100 aircraft of the new solar planes will take that 75 per cent of the jets in the existing by 2027 with the total value of aircraft place at a facility in Farnborough in fleet were currently narrowbody or to be delivered over the next 10 years, at the south of England. The site can single-aisle planes. current list prices, projected to be $60 reportedly make 30 of the planes at billion,” it said. a time. Notably, over 60 per cent of the in-service and committed fleet comprise future technology types, it said, adding, after taking into account the existing orders, there was a shortfall of 300 aircraft, with a current value of $20 billion, for India’s airline fleet development over the next 10 years. This included requirements for 125 narrowbody jets, 125 widebody jets and 50 large regional aircraft, it added.

NUMBERS CHINESE FORAY Airbus predicts demand Intensive flight for 37,390 aircraft Airbus predicted a global demand of 37,390 new test phase for passenger and freighter planes valued at $5.8 trillion China's C919 over the next 20-years. According to Airbus’ new Global Market Forecast (GMF) 2018-2037, the China’s C919 large passenger plane world's passenger fleet is expected to more than project has entered into a new major double to 48,000 aircraft in 20 years with traffic growing at a resilient 4.4 per cent per year. phase with intensive flight tests in The GMF said that growth drivers include private consumption increasing 2.4 times in multiple sites around the country, emerging economies, higher disposable incomes and a near doubling of the middle classes according to its developer, the state- owned Commercial Aircraft Corporation globally. of China (COMAC). It will mainly The report added that out of the 37,390 new aircraft required, 26,540 are for growth and undertake the ground tests of the 10,850 will replace older generation less fuel efficient aircraft.

22 August 2018 www.cruisingheights.in DIGEST Cruising Heights

FORECAST Boeing lifts industry forecast to $6.3 trillion Boeing raised its rolling 20-year industry cent increase in the forecast for single- forecast for passenger and cargo aisle aircraft, such as the Boeing 737 aircraft by three per cent, but shaved and Airbus A320 families, underpinned its projections for wide-body as well as by a prediction for average global traffic regional jets, as its battle with Airbus growth of 4.7 percent, unchanged from intensifies in smaller planes. The aircraft last year. manufacturer said it expected 42,700 The aircraft manufacturer now sees industry deliveries over the next two 31,360 deliveries in the medium-haul, decades, up from its estimate of 41,030 a single-aisle category, which is the year ago. cash cow of the world's two largest That would be worth $6.3 trillion at planemakers and popular with low-cost Analysts expect Boeing and Airbus to use list prices versus last-year's $6.1 trillion airlines, Boeing said. The Seattle-based their scale to heap pressure on suppliers prediction. manufacturer shaved its forecast for the to lower costs, which could trigger Dominating that tally is a five per regional jet fleet to 2,320 deliveries. consolidation.

PARTNERSHIP CUSTOMER RATED Boeing-Embraer’s strategic R-R falls in aerospace partnership Boeing seems to be strongly headed for satisfaction survey a New Midmarket Aircraft (the NMA or, Aircraft engine maker Rolls-Royce unofficially, the 797) programme. At least has not fared well in a new customer that is what the Boeing-Embraer tie up could satisfaction survey by the Aviation throw up, according to market analysts. Week Network and AeroDynamic The new plane could be dubbed the BE808, Advisory. R-R, in fact, is below and will be the answer to the CS100, now Bombardier. On a 0-10 scale, the engine rebranded the A220-100, after Airbus’s with Boeing’s commercial development, maker got a 6.6. The top scorer was majority stake in Bombardier’s C Series production, marketing and lifecycle Boeing with 7.8, followed by CFM programme. services operations. Under the terms of the International’s 7.2 and GE Aviation and Boeing and Embraer signed a agreement, Boeing will hold an 80 per cent United Technologies Corp.’s Pratt & Memorandum of Understanding (MoU) ownership stake in the joint venture and Whitney (7.0 each). Bombardier got a to establish a strategic partnership that Embraer will own the remaining 20 per cent low of 6.9. positions both companies to accelerate stake. But the Brazilian government, which The report in Aviation Week goes growth in global aerospace markets. The holds veto power over strategic moves at on to point out that R-R did the worst non-binding agreement proposes the Embraer, needs to approve the deal. in the net promoter scores (NPS). The formation of a joint venture comprising the The combined partnership would then scores are supposed to “illustrate how commercial aircraft and services business have coverage from 75 to 220 seats with two satisfied or loyal a customer is to a of Embraer that would strategically align family members. product or service”. NPS run from -100 to 100, with any percentage above zero essentially being positive; simply put that means more people would aircraft’s propulsion, fuel, and power airports to undergo rigorous testing recommend a company’s product supply systems, as well as environmental in complex weather conditions and or service than not. Where 50 is control. a series of high-risk flight tests, said considered “good” and 60-70 is “world The C919, China’s first self-developed COMAC. To date, COMAC has received class”, Rolls was at -24 per cent. trunk jetliner, had conducted a successful 815 orders for the C919 from 28 The survey results did not come maiden flight on May 5, 2017, at Shanghai customers worldwide. Pudong International Airport. as a surprise. The Trent 1000 engine The company said six C919 planes will has been having major problems and undertake various comprehensive tests as a result, a number of Boeing 787s on stalling, power, control and stability, had to be grounded, causing carriers to flight control, aircraft deicing, as well as change schedules. While a redesign of extreme temperature tolerance. Another the blades of the intermediate-pressure two planes will undertake static and (IP) compressor rotor has begun, fatigue ground tests. repairing all the engines in service The C919 planes will fly to various could take years.

www.cruisingheights.in August 2018 23 Cruising Heights DIGEST

IGIA DIARY Boosting flight numbers per hour The Airports Authority of India (AAI) has been working on a plan to augment the air traffic handling capacity of the Indira Gandhi International Airport (IGIA) by 30 per cent in the next three years. Presently, IGIA handles up to 73 movements per hour (departures and arrivals), which is likely to be increased to 95 movements per hour by 2021. The focus will be on three areas: ground infrastructure, airspace use and air traffic flow management procedures. Improved ground infrastruc- ture will comprise building rapid exit taxiways so that landing aircraft can vacate the runway more quickly. Additionally, the airport’s operator, Delhi International Airport Limited (DIAL), has planned to build dual taxi-lanes for uninterrupted taxi flow to and from the aircraft gates as well as add a fourth runway by 2021. DIAL to curb airport noise DIAL has set up a noise complaint cell for hospitals and resi- dences around the airport to control aircraft noise. “Delhi In- ternational Airport Limited has established a noise complaint cell. In case of any grievances and suggestions on high level of noise, kindly contact Delhi International Airport Limited," informed the notice. The decision has been taken after locals alleged that the noise created by aircraft at the Delhi airport was affecting the health of the residents of nearby areas.

PUNE DIARY Aerobridges? Not so soon! Three aerobridges at Pune airport stated to start operations in July 2018 – making a hassle-free walk to and from aircraft to the terminal building for fliers -- might take long as Ministry of Civil Aviation has said that the procurement of the bridges had not started. At present, the airport has two aerobridges for general passengers. OPERATIONS Baby care rooms 24x7 at your service! Ushering in relief to mothers who travel with toddlers, Pune airport has set up a Soon after getting the international baby care room in the check-in area of the airport. The kiosk has all the facilities airport recognition, Surat airport one needs, including a small tray-like bed where the child can has been given permission to be made to lie down to facilitate a change of nappy and/or operate 24x7. AAI has given the clothes. The space also has a screen that displays details about airport permission to operate round scheduled flights. Bins have been provided to dispose used the clock. Also, the operator is in the nappies. Also, soon two additional kiosks will be made available process to recruit staff and set up in the arrival area as well. The kiosk can accommodate two immigration and customs counters infants and their mothers. at the terminal.

UPDATE Navi Mumbai on track INFRASTRUCTURE cut without forest clearance,” Mumbai Mirror quoted Abhijit Prabhudesai, GVK Power and Infrastructure Limited Tree tales for Mopa General Secretary of Federation of has achieved financial closure for To meet the deadline of Septem- its first phase work for Navi Mumbai ber 2019, the Goa government has International Airport. Yes Bank will proposed the felling of nearly 55,000 be the lead bank and mandate lead trees to construct the state’s second arranger for Phase I and Phase II of the international airport: Mopa airport. airport project. Completion of financial The state moved an application before the National Green Tribunal closure on July 7, 2018 was considered (NGT) seeking an urgent hearing to as the appointed date in terms of the permit the felling. However, activists concession agreement signed with have claimed that the numbers were CIDCO. The first phase of Navi Mumbai wrong and that the actual number airport will now cost `135.6 billion, was close to 90,000. “During land which is about 50 per cent higher than acquisition in 2007, the district ad- the earlier estimate of around `90 ministration had counted over 90,000 trees. These are small forests being billion made by the planning authority.

24 August 2018 www.cruisingheights.in DIGEST Cruising Heights

KIA DIARY GMR gets ‘gold’ With a little help of 3D technology

GMR Group International Airport Limited (BIAL), operator of Kempegowda has received International Airport, has identified Autodesk BIM 360 (Building Information the Gold Modelling) as the design and planning platform for the construction of T2 of prize in PR the airport. This platform will ensure that the entire team is able to access achievement information – from design, fabrication, and construction to operations of the year and maintenance – to make informed decisions from a common point of category at the US-based 7th Annual understanding. The Bengaluru Airport is the first infrastructure project PR World Awards for its PR campaign in the country that will be designed, built and operated across the project for the “reopening of Terminal 2 of lifecycle using an intelligent 3D design construction technology. the Delhi Airport”. GMR was the only The tender for the construction of T2 has been rolled out to select Indian infrastructure major to get the construction groups, inviting bids for the project that must be submitted by recognition. “Reopening of Terminal 2 August 30, 2018. The mega T2 project will be built in phases with Phase 1, of Delhi Airport was a highly chal- covering 255,000 square meters, expected to be operational by March 31, lenging communication as it required 2021. The first phase of this terminal will cater to 25 million passengers per integration of several stakeholders annum (MPPA), while the second phase of T2 – still in planning stage - will including Airlines, security agencies, be built for an additional 20 MPPA. Once operational, the combined capacity ministry, regulator and flyers among of both terminals will be 70 MPPA. others,” the Group said in the state- ment. Engagement centre for pax Enhancing passenger experience, KIA has planned to come up with an engagement centre to support the needs of travelling and non-travelling FACILITY CRUNCH customers on a 24x7 Parking space woes basis. The facility will be the airport’s Parking woes at Chennai airport has nerve centre for all gone to such a level that shortage of customer-facing aircraft parking bays at the airport has enquiries, integrating forced airlines to take up space at the this within the Airport cargo terminal, to park and let pas- Control Centre facility, sengers get on board domestic flights where the day-to-day for the early morning flights. The ripple decisions related to effects were felt on cargo operations, as airport operations are with scheduled flights on the termi- made. “The strong nal, freighters have to be parked away growth in commercial from the cargo terminal, slowing down flights, enabling more loading and unloading process. Sources customers to travel said that three parking bays in the cargo in and out of Bengaluru, has meant airport operations are now 24x7. It, terminal are being used for handling therefore, makes sense that BIAL supports customer needs through the domestic flights. day,” an airport spokesperson informed Bangalore Mirror.

FACILITY Rainbow Warriors (FRW), an environ- after the state government, in 2016, ment NGO opposing the airport as narrowed the definition of a ‘tree’ CAT-III @ Chandigarh saying. The official number reduced under state laws, he added. Putting a stop to cancellations during The tree tale is a long one. Act- ing on reports from villagers that winter owing to fog or poor visibility, trees were being cut without any Chandigarh airport will soon have permission, the NGT first stayed Instrument Landing System CAT-III. the felling in November 2017. On Advanced navigation aide CAT-III February 6, 2018, the forest depart- instrument has been finalised for ment permitted felling of 21,700 trees, but this was stayed in March installation at the airport. Two major by the Bombay High Court on the obstacle regarding installation of ground that the trees had not been CATIII were shifting of a wall and the individually numbered. On the cost involved in it. Both have been court’s directions, again the airport resolved as the Punjab government was asked to number the trees properly before cutting them. Clear- has agreed to provide requisite. Also, ly it’s a numbers game at Mopa. AAI has agreed to bear the cost of shifting and reconstruction of the wall.

www.cruisingheights.in August 2018 25 Cruising Heights DIGEST

GREENFIELD AIRPORT REGULATIONS aircraft. The rules released were: Noise free airports! • Busy airports — a civil airport The Union Environment Ministry with more than 50,000 aircraft has issued a notification setting noise movements per year (take-off or a standards for all airports landing) – should not exceed across the country. “The noise levels beyond 75 dB(A) noise limits specified shall Leq (decibels) during the day replace and supersede time (6am to 10pm) and 65 the ambient air quality dBA during the night (10pm in respect of noise limits to 6am). All other airports — Welcome, Nellore airport of existing zones: silence, an airport having more than Putting an end to a long wait, the residential, and commercial 15,000 but less than 50,000 ceremony for the much-awaited areas,” the notification read. movements annually — Nellore airport in Andhra Pradesh The limits, however, exclude defence should not exceed levels beyond is likely to take place soon. The state government has already signed the concession agreement FACILITY with the developer – SCL-Turbo which has formed a consortium, Charging facilities for electric vehicles Nellore International Airport Private Mumbai International Airport Limited (MIAL) has initiated the process of install- Limited – for the construction of the ing electric charging stations in the parking areas at both the terminals of the Greenfield airport at Dagadarthi, in airport. Other than for the general public where travellers can charge their electric Nellore district. The developer has vehicles, the charging stations will also be installed air-side to cater to vehicles planned to complete the project by of ground handling agencies and airlines. MIAL is in the process of appointing 2020. Also, Nellore International an operator for the facility. It has floated an expression of interest (EOI) invit- Airport Private Limited has planned ing companies to be the concessionaire to build and run the charging stations. a cargo hub that will benefit local The EOI reads, "Install, operate, maintain and manage the charging stations for industries as well as those from electric vehicles at multilevel car parks at Terminal 1 and Terminal 2 of Chhatra- nearby cities like Chennai. pati Shivaji International Airport (CSIA), Mumbai, for use of general public and people working at airport and parking their electric vehicles."

Telangana pushes to BIDS PAX EXPERIENCE develop airports Poor show: privatisation saga! The state government has asked No to tagging at the Ministry of Civil Aviation to AAI has deferred the privatisation plans of Jaipur five more prepare a feasibility study on five and airport, due to the poor show more airports in Telengana to put up by bidders. There is only one bidder for the Joining the list of air- enhance regional air connectivity project by far. “We have suggested more changes to ports where the practice in the state. The state government the privatisation proposal for these airports to make of hand baggage stamp- has decided to develop six airstrips them attractive to the bidders,” AAI Chairman Guru ing and tagging is the to improve air connectivity initially. Prasad Mohapatra told Mint. The government had gone news are airports Air connectivity will be expanded first come up with the plan to partial- of Khajuraho (Madhya later to every district. The state has ly privatise Jaipur and Ahmedabad Pradesh), Raipur (Chhat- airstrips in Adilabad, Peddapalli airports in 2014. However, the tisgarh), Jorhat (Assam), and Warangal. While the Mamnoor efforts hit a rough patch after Dimapur (Nagaland) and airport on the outskirts of Warangal AAI’s tender for privatising Shillong (Meghalaya). is near the Textiles Park, Addakul terminal operations at these With this, a total of 42 in Mahbubnagar has been proposed airports during 2017-18 failed airports in the country for an airport while the approval for to attract bidders because of the out of the total 60 under Jakranpally in Nizamabad district is stringent terms and conditions of the CISF security cover awaited. the contract. are now tag-free. OPERATIONS Night landing at Srinagar Soon, aircraft can land at Srinagar airport at night as it is preparing to have night handling facilities in coming months. The AAI has procured the night-landing equipment and presently installation work has been under progress. Also, Direc- torate General of Civil Aviation (DGCA) has granted necessary permission for operating night flights, and the state government had already released `3.86 crore for meeting the expenses of raising ancillary infrastructural facilities for night hours at the airport for the convenience of travellers and the staff.

26 August 2018 www.cruisingheights.in DIGEST Cruising Heights

UTILISATION 65 dBA during the day and 60 dBA during the night. Proposed airports however, are excluded so far. [DB (A) Leq denotes the time weighted average of the level of sound in decibels on scale ‘A’ which is relatable to human hearing.] • The rules imply that new airports may be set up in any Tirupati Airport zone — even next to hospitals, schools, courts or other noise- International, but of no use! sensitive areas — and that Over three years have passed since the airport in Tirupati was accorded health-based noise laws will not 'international' status but the reality is that it has not logged one be applicable. international flight so far. Chief Minister N Chandrababu Naidu had announced in June direct flight services to Singapore from Vijayawada airport would be launched by July 7, however the deadline has now been OPERATION missed and no such service has started. Even after offering Viability Gap Funding for the first six months, AP Airports Development Corporation Bringing back the wide Limited’s plan to launch a charter service to Singapore from Vijayawada from July 1 failed to attract any operators. "No airline operator has so bodies far evinced interest in operating international flights from Tirupati. In Lifting the three year-old ban on operation the case of Vijayawada, though, negotiations are currently underway to of widebodied aircraft from Calicut begin international services but it may take some more time for things International Airport in Kerala, MPs from to materialise," Economics Times quoted a senior official of the AAI as the state will soon meet the Union Civil saying. Aviation Minister and DGCA authorities. “The airport has fulfilled all the technical stipulations for operation of wide- bodied aircraft and the matter is now before the EXPANSION concerned authority,” TOI quoted MP P K Kunhalikutty, who is also the Chairman of Unexpected rush in Iceland the Advisory Committee, as saying. DGCA had suspended operation of widebodied Keflavik International Airport of Iceland has been working on a roughly $1 billion expansion to accommodate (Code-E) aircraft from the airport since the rush of travellers and airlines. May 1, 2015 citing safety concerns. The In 2015, ISAVIA airport operator DGCA had pointed out that the airport with projected that the airport would its runway length of 2,850m was designed handle 8.8 million travellers a year for operation of only narrowbodied by 2025. It now expects more than (Code-D) aircraft. 10 million passengers this year and more than 17 million annual travellers in 2030. The airport PLANNING is already hitting close to max With a little help capacity at certain times of the day. from India! DEVELOPMENT Sri Lanka will go ahead with the UAE invests in airport development deal with India to handover the nation's loss-making Mattala UAE General Civil Aviation Authority, the largest airline market and Rajapaksa International Airport in aviation hub in the Middle East and North Africa has planned to invest Hambantota. Sri Lanka has asked the $23.16 billion in airport development and AAI to submit its business plan for expansion that will see its airports develop operating the country's loss-making combined capacity to handle more than airport. The $210 million facility has 300 million passengers per year. UAE’s been dubbed the ‘world's emptiest investments include $8 billion in developing airport’ due to a lack of flights. The Al Maktoum International Airport, $7.6 airport was officially opened in billion for the expansion of Phase IV of Dubai International Airport, $6.8 March 2013. The only international billion re-development and expansion of Abu Dhabi International Airport flight operating from there was – many of which are supported by banks and financial institutions. In halted in May due to recurrent losses addition, Sharjah International Airport is also undergoing an expansion of and flight safety issues. its terminal.

www.cruisingheights.in August 2018 27 Cruising Heights SHOWCASE A SCORCHER OF A SHOW

ne aspect that remains constant at major 2018 (FIA 2018) as ‘massive’, announcing that it airshows worldwide is the rivalry between had won new business for 431 single-aisle and Airbus and Boeing with both airframers widebody jetliners at the expo. But apart from Air- vying hard to announce a larger number of bus unveiling the A220 (the erstwhile Bombardier Oaircraft orders and deals at the show. This C Series), it was Boeing that came out ahead with year the same scorching pace was matched by orders and commitments for 673 aircraft. The an unusually warm English summer, which had company notched up total commercial airplane company execs hot under the collar, but for all orders and commitments worth $98.4 billion (at the right reasons. list prices) and commercial and defence services Airbus declared the Farnborough Airshow orders and agreements valued at $2.1 billion.

28 August 2018 www.cruisingheights.in SHOWCASE Cruising Heights

The 2018 edition of the Farnborough Airshow once again delivered in terms of record deals for jetliners. It once again underlined the fact that the commercial aircraft industry remains in good health, writes C SANTHOSH.

However, when one looks beyond the hoopla, craft. When a firm order is finally placed, the it is clear that firm orders were much lesser and orders or options could be smaller or for another the majority of the announcements for aircraft variant or even another type and in some cases, buys fell in the realm of Letter of Intent (LoI) the order itself never coming through. and Memorandum of Understanding (MoU). Of the 431 commercial aircraft that Airbus While LOIs/MoUs do in the majority of the said it had won as new business at FIA 2018, cases translate into firm orders, it is not always firm orders made up 93 aircraft, while the the case – as they are merely an understanding remaining 338 were MoUs. The 431 comprise between the airline and the airframer that there 60 A220-300s and 304 A320 family aircraft in

is an intent to acquire a certain number of air- the single-aisle segment, 42 A330neo and 25 INTERNATIONAL FARNBOROUGH

www.cruisingheights.in August 2018 29 Cruising Heights SHOWCASE

FARNBOROUGH INTERNATIONAL

SPLENDID SHOW: A350 XWB jetliners in the twin-aisle category. market as a strong one and see a 3.1 trillion mar- (left- right) SpiceJet has ket place over the next 10 years. 43,000 aircraft entered into an agreement The highlights for Airbus were the emergence with Dowty Propellers to of its A220 single-aisle jetliner and its new needed over next 20 years.” extend a propeller system relationship with Canada’s Bombardier, that “We are winning in the marketplace with a support contract for its provides it the perfect solution for customers growing backlog and expect to see top and bot- Q400s for a period of seven looking to bridge the gap between regional tom line growth. Boeing is investing in innova- years; flying pass at the transport aircraft (RTA) such as the ATR 72/ tion for the future and are investing in a number show; Richard Branson, Bombardier Q400 and A319/320. “Building of disruptive technologies. We are seeing the Virgin boss waving the on the previous commercial efforts of Bom- aerospace market heading towards a sustained crowd on his arrival at the bardier, we’re bringing the major resources growth market, rather than what has histori- show and in line with its of Airbus today – especially with our exper- cally been a cyclical market. We are growing our long haul plans, Vistara has signed an order for six tise in the single-aisle market,” Airbus’ Chief services business which is non-cyclical,” Muilen- 787-9 Dreamliners with Commercial Officer Eric Schulz told jour- burg added. options for four more. nalists. “Customers are reassured by the big Airbus organisation; they know the support come of age is there for training and maintenance, as two Continuing with the trend of Indian carriers examples,” Schulz went on to emphasise. The announcing sizeable jetliner and RTA deals A350 has now also received certification from at airshows, Jet Airways ordered 75 more 737 China’s aviation authorities and this will cer- MAX 8 aircraft for which it will pay $8.8 billion tainly be a boost for the programme. Not sur- (at current list prices), though airlines typically prisingly, the A380 continues to remain dead secure substantial discounts on their orders. in the water, though Airbus officials remain This order was previously posted as unidentified positive of some sales this year. on Boeing's Orders and Deliveries website. Boeing marked a successful FIA 2018 with "Our latest order for 75 additional Boeing a continued resurgence in demand for freight- 737 MAX aircraft reflects our long standing ers – the 777F securing 48 orders and five for association with Boeing and reposes our faith the 747-8F. Orders for the 737 MAX and 787 in the aircraft they manufacture," said Naresh were also strong. Of the 673 orders and com- Goyal, Chairman of Jet Airways. "The MAX will mitments announced by Boeing, the 737 MAX allow us to offer guests a superior and well dif- bagged 564, while the 787 saw 52 orders coming ferentiated experience using a modern, reliable its way. Outlining Boeing’s future vision, Dennis and fuel efficient fleet. The order also emphasiz- A Muilenburg, Chairman, President and CEO, es Jet Airways' commitment to the growth and The Boeing Company, said, “One Boeing is an potential of the Indian aviation market." integrated approach that spans all our functions Mumbai based Jet Airways now has a total of and businesses and we have an integrated team 225 MAX airplanes on order (including options), handling it and delivering great value to our following two separate orders for 75 jets that customers. We continue to see the aerospace were placed in 2015 and another one earlier this

30 August 2018 www.cruisingheights.in SHOWCASE Cruising Heights

FARNBOROUGH INTERNATIONAL year. The airline took delivery of its Boeing 737 aircraft in a move that marks a dramatic expan- Max 8 (on lease from GECAS) in June, making sion for the full-service carrier. The new aircraft it the first airline to operate the new type in the ordered will be delivered between 2019 and country. The new aircraft will enable Jet Airways 2023 and all aircraft will be powered by CFM to stay ahead of the growth in domestic air traf- LEAP 1-A engines. The airline is due to take fic in India, which has grown by approximately delivery of another A320neo in September and 20 per cent each year since 2014. A total of 119 currently has a fleet of 13 Airbus A320ceos and aircraft – comprising Boeing 737 MAXs, 777- 8 A320neos. Vistara’s A320neos are configured 300 ERs, Airbus A330-200/300s, Next Genera- in a three-class layout – with 8 Business Class, tion Boeing 737s and ATR 72-500/600s – make 24 Premium Economy and 126 Economy Class up the current Jet Airways fleet. seats – for a total of 158. AIRBUS WON NEW Marking a major expansion for Vistara, the SpiceJet entered into an agreement with BUSINESS FOR airline joint venture between Singapore Airlines Dowty Propellers at FIA 2018, to extend a pro- 431SINGLE-AISLE and Tata Group, it confirmed an order for six peller system support contract for its growing AND WIDEBODY 787-9 Dreamliners with options for four more fleet of Bombardier Q400s for a period of seven JETLINERS AT THE at FIA 2018. When the aircraft are delivered, years. Dowty Propellers operates a purpose-built EXPO. ON THE OTHER Vistara will be the first Indian carrier to operate propeller repair shop created in a joint initiative the 787-9 and will use it to launch its long-haul with SpiceJet since 2016 and this facility has the SIDE, IT WAS BOEING operations. The order is valued at $2.8 billion capability to repair propeller systems on-site, THAT CAME OUT (at list prices). The 787-9 is powered by General significantly reduced turn-around time (TAT) AHEAD WITH ORDERS Electric GEnx-1B engines. Vistara inducted and enhanced repair work efficiency. “Having AND COMMITMENTS its 21st aircraft, a A320neo in June, making the support of Dowty Propellers is key to ensur- FOR 673 AIRCRAFT. it eligible to launch international operations. ing the availability of our Q400s in meeting the THE COMPANY In the week prior to the start of FIA 2018, demand for air travel created by India’s eco- NOTCHED UP TOTAL Vistara had announced that it would place firm nomic and business growth,” said Arun Kashy- orders with Airbus for 13 A320neo/A321neo ap, Executive Vice President of Engineering & COMMERCIAL aircraft (options for seven more) and six 787-9 Maintenance at SpiceJet. “We look forward to AIRPLANE ORDERS Dreamliners. taking this new step in our relationship with AND COMMITMENTS “India’s position as the world’s fastest grow- Dowty Propellers.” WORTH $98.4 ing domestic aviation market and its impressive The capacity of the Hyderabad propeller BILLION (AT LIST growth in air passenger traffic that has more repair shop is now being increased to cater for PRICES) AND than doubled over the last decade, makes us SpiceJet’s growing Q400 aircraft fleet. Dowty COMMERCIAL AND confident of our aggressive plans for domestic Propellers will augment its stock of parts and expansion and international foray,” said Vistara components at the facility accordingly. “This DEFENCE SERVICES CEO, Leslie Thng. Vistara will lease another latest contract marks a new step in our ongoing ORDERS AND 37 new A320neo-family aircraft from leasing relationship with SpiceJet and an endorsement AGREEMENTS VALUED companies, adding a total of 50 A320neo-family of our innovative approaches to provide local AT $2.1 BILLION.

www.cruisingheights.in August 2018 31 Cruising Heights SHOWCASE

Boeing readies itself for the future Boeing officials at the Farnborough Airshow provided an insight into some of the current challenges and detailed the future plans for the company.

Are growing trade barriers a concern for complimentary aspects go beyond the product Boeing? line and go into Research & Development Our key focus is to ensure that there is a free (R&D), services, work on the KC-390 and flow of trade and we want to ensure free trade Embraer’s commercial aircraft products are around the world. Aerospace thrives on free a complimentary fit with our product line. We and open trade, while we are concerned about have been collaborating with each other for ongoing talks of trade tariffs and restrictions, 30 years. Looking at where the two companies we haven’t seen any action yet that will have are strategically, and looking at where an effect on the material side of the business. we are from a development and product However, this is a pretty important topic for perspective, this was the perfect time to form us and we continue to stay engaged with a partnership. We are pretty excited about this Govt’s around the world. Aerospace promotes partnership which will allow us to serve our economic growth and prosperity around the customers much more comprehensively. world and we are trying to get this message across. Aerospace results in a 80 billion dollar What is the progress on Boeing’s New trade surplus. There is a clear economic Midsize Airplane (NMA)? benefit associated with the aerospace We refer to this aircraft as our ‘Middle of industry and the USA. Market’ airplane and do not use the 797 terminology. Boeing has not made a launch What is Boeing’s strategic partnership with decision on this airplane as yet, and we are Embraer? continuing to do our business case. Good Boeing’s partnership with Embraer has been progress is being made and we are having in work for some months and we have a very product discussions with dozens of customers BIG CATCH: good ongoing relationship with Embraer. and are advancing our business case. Our The brand-new Boeing It is a unique opportunity to bring together plan is to make a launch decision on this 747-8 freighter powered two companies that have a phenomenal airplane by 2019. We are still targeting a 2025 by a quartet of GEnx aerospace heritage. The strategic partnership ‘Entry into Service’ date and we are doing the engines was showcased at that we recently announced has had work work necessary to continue to protect that Farnborough on its maiden going on it for more than a year. The date for our customers which we know is voyage from Boeing's factory in Everett, Washington. The GEnx normally power the Dreamliner, but GE Aviation optimized a version of the support to customers across the globe,” said Oli- pellers’ R408 all-composite six bladed propeller engine, the GEnx-2B, for the ver Towers, the President of Dowty Propellers. system which features an advanced swept design new freighter. The Bombardier Q400 is fitted with Dowty Pro- and optimized airfoil sections. SpiceJet currently operates 22 Q400s and will add 25 more aircraft in future. ATR reaches milestone ATR completed the delivery of the 1,000th ATR to IndiGo, marking a major milestone in the RTA programme. The newest ATR version, the ATR 72-600 was launched in 2009 and entered into service with Royal Air Maroc in 2011. “The ATR 72 has proven to be an outstanding suc- cess for over three decades. We are sincerely proud of delivering this 1,000th aircraft, as it underlines the many advantages it provides to airlines when it comes to ensuring essen- tial connectivity and exploring new business opportunities. We look forward to consolidat- ing and extending the attractiveness and success of the ATR 72 for many more years,” said ATR’s

FARNBOROUGH INTERNATIONAL FARNBOROUGH Chief Executive Officer Christian Scherer. ATR

32 August 2018 www.cruisingheights.in SHOWCASE Cruising Heights

important to them. and hypersonic aircraft – the exact timelines We have a large number of City Pairs are a little hard to predict. The technology is where you cannot fly more single-aisle doable but we still have to close the business aircraft. So the opportunity to broad-gauge case for this technology. We are investing in that space makes a lot of sense. There in things like ramjet, scramjet technology are also a large number of City Pairs around etc. We have taken a stake in a company the world, where current generation jetliners called ‘Reaction Limited’ which is working on cannot operate economically – they are engine technology in the hypersonic arena. too heavy to handle the 5000nm and below segment. With the 60 plus customers that we have worked with – there is a real opportunity to serve them. Our team is working hard on it but we will not be rushed into a decision and will finish our business case. We do think that this future airplane will be more about future production systems, than it is about pushing the technology of the airplane itself. Life cycle management is also a key part of the values for the new aircraft. It is a different way of looking at that future airplane and looking at it from a total system perspective. This is one of the areas that we have been investing in vertical technologies that will build the capacity inside of our airplanes. We are definitely looking at this future airplane through this life cycle lens. We are highly integrated now in terms of We envision a future world that has not only FUTURISTIC: Boeing’s product invention. Sustainment and life cycle super-efficient sub-sonic aircraft but also supersonic aircraft. The management are key parts of the Boeing NMA includes high speed aircraft connecting city concept was shown at the that we have benchmarked. That includes the pairs all around the world in a matter of a airshow fundamentals of how this airplane operates couple of hours. When you are talking of a over the long-term. Mach 5 airplane, obviously there is a lot of technology work to do. We want to look at this What is Boeing doing in the hypersonic not only from a Technology standpoint but also arena? from a Business standpoint. We are looking at We do see a future that includes supersonic partners and are making investments here.

has delivered more than 448 ATR 72-600s till and on quality”, declared Tom Anderson; SVP JET AIRWAYS NOW date. ATR forecasts a requirement for over 3000 Programmes and Customer Services of ATR. HAS A TOTAL OF 225 turboprops by 2037, as compared to a regional “We want to provide an optimal service to every MAX AIRPLANES ON jet, an ATR 72 can burn up to 45 per cent less single ATR aircraft flying all over the world. ORDER (INCLUDING fuel. ATR aircraft are also used by airline opera- Today, we have Global Maintenance Agreements OPTIONS), tors to open on average 100 routes every year, with some 40 operators, and we celebrated the FOLLOWING TWO reaching over 150 in 2017, which allows them signing of two additional global maintenance SEPARATE ORDERS to then operate the aircraft on new sectors that contracts with Brazil’s Azul and with Sweden’s are more profitable. BRA. We will further develop our support to FOR 75 JETS THAT ATR also announced new additions to its aircraft already in service, this is why we are WERE PLACED IN portfolio of customer services at FIA 2018. now also proposing to install in retrofit some of 2015 AND ANOTHER ATR Customer Support & Services activities the newest innovations that we are introducing ONE EARLIER THIS generate nearly 20 per cent of the revenue into the market, such as our new Neo Classic YEAR. THE AIRLINE of the aircraft manufacturers overall annual and Neo Prestige seats or our brand new TOOK DELIVERY OF turnover. With Customer Support & Services Cabinstream in-flight entertainment system.” ITS BOEING 737 MAX generating approximately $350 million annually, Amongst the new services announced at FIA 8 (ON LEASE FROM ATR is seeking to increase this turnover by 2018 are; e-Spares portal, which makes it easier GECAS) IN JUNE, approximately 10 per cent each year. “Providing and quicker for airline operators and MROs a wide range of customer support services is to order parts through automated processes; MAKING IT THE FIRST part of the DNA of ATR. With a fleet of over Extension of A-check intervals from 500 to 700 AIRLINE TO OPERATE 1,100 aircraft in service, we have to make sure hours by end 2018, as the shift of A-checks from THE NEW TYPE IN to match our operators’ expectations on time three months to four and a half will not only THE COUNTRY.

www.cruisingheights.in August 2018 33 Cruising Heights SHOWCASE

PIECE OF ART: On show was E190-E2, a rival to the Airbus A220-300 in the battle within the small jetliner market FARNBOROUGH INTERNATIONAL

reduce maintenance costs but also allow an ATR regional jets are to be retired in North America operator to offer up to 700 additional seats per between 2022-2027. Designed entirely as a new aircraft every year and finally ATR is upgrading plane and developed from scratch, “ there was its Customer Care frontline service, which no pre-existing platforms to conform to and no functions from customer support offices in existing component catalogue to incorporate, Toulouse, Miami, Bangalore and Singapore and “company officials say. The MRJ is powered will now be able to provide service and solutions by Pratt & Whitney PurePower GTF engines to requests beyond AOGs, with accurate and and thanks to its advanced aerodynamics and quick responses to critical and routine events, in wing design it delivers the lowest fuel burn in less than 24 and 72 hours, respectively. its class. The smaller MRJ70 is the only all- new regional aircraft that can operate within Regaining lost ground scope restrictions in the U.S. The MRJ90 and THE HIGHLIGHTS FOR A sought after visitor to FIA 2018 was the MRJ70 also feature an extremely high degree AIRBUS WERE THE Mitsubishi Regional Jet (MRJ) produced by of commonality. MHI’s Mitsubishi Aircraft Corporation. The EMERGENCE OF ITS Battle for engine dominance A220 SINGLE-AISLE new generation clean-sheet design aircraft has been struggling over the last few years and is CFM International announced orders and JETLINER AND ITS now slated for first customer delivery in mid- commitments for more than 850 LEAP and NEW RELATIONSHIP 2020. This year's Farnborough International CFM56 engines at FIA 2018 and said that WITH CANADA'S Airshow was a monumental moment for it had received orders for more than 2,200 BOMBARDIER, THAT the MRJ programme as it was the aircraft’s engines, since the beginning of the year. In PROVIDES IT THE maiden flight demonstration at an airshow. addition to long-term services agreements PERFECT SOLUTION The MRJ performed a short, steep take-off, a inked at the show, CFM International said FOR CUSTOMERS stall approach and a series of banks and turns that this business had a total value of $15.7 that culminated in a low-speed pass before billion US (at list prices). “We just delivered the LOOKING TO its final, smooth landing. The other MRJ 1,000 LEAP engine, the fleet has logged more BRIDGE THE GAP prototype aircraft are undergoing flight testing than 1.5 million flight hours, and we have the BETWEEN REGIONAL in the USA. With Bombardier and Embraer, highest daily utilization in this thrust class,” TRANSPORT all but having handed over their regional said Gaël Méheust, President and CEO of CFM AIRCRAFT (RTA) transport aircraft ambitions to Airbus and International. “That means our customers have SUCH AS THE ATR Boeing respectively, according to MRJ Chief the flexibility to operate their assets when they 72/BOMBARDIER Development Officer Alexander Bellamy, the want, where they want, as often as they want. MRJ brings much needed choice in the RTA Our customers and their operations are always Q400 AND market. The MRJ is targeting the market at the forefront of everything we do, and we A319/320. need that will be generated as more than 900 could not be more honored by the confidence

34 August 2018 www.cruisingheights.in SHOWCASE Cruising Heights

they continue to show in our products and to the regulatory standard and to lower the services." noise footprint by 75 per cent; however teeth- CFM will have delivered more than 2100 ing troubles associated with the GTF have seen LEAP engines by end 2018 (1,100+ LEAP engines it lose ground to CFM International’s LEAP and 1,050 CFM 56 engines). With a production engine family. Delivery of PW1100G engines ramp-up for LEAP engines currently underway, which power the A320neo family were halted CFM will be producing 2,000+ LEAP engines earlier this year. The combined GTF-powered per year by 2020. As of July 23, 61 airlines were fleet of A320neo family, A220 and E190-E2 air- operating aircraft powered by LEAP engines, craft now stands at approximately 200 aircraft which have been logging in more than 200,000 with almost 1 million flight hours having been flight hours per month. In comparison to the accumulated. CFM56 engines which took four years to achieve As a greater number of GTF engines WELCOME ALL!: Theressa one million engine flight hours, the LEAP took enter service, Pratt & Whitney is expanding May, Prime Minister of UK only 22 months. the GTF Engine MRO Network which will giving the introductory note Pratt & Whitney which has been plagued grow to eight Engine Centers by 2020. "The to the gathered attendees at by trouble on its new GTF engines, announced goal of the network is to provide the highest the show at FIA 2018, that the new GTF engine orders and commitments (including options and spares) had exceeded 2,000 units over the past 12 months (July 2017-July 2018) from 22 cus- tomers. “The GTF’s strong order book over the past year is a reflection of the tremendous value the engine provides to operators,” said Chris Calio, president of commercial engines at Pratt & Whitney. “This engine architecture is allowing customers to realize fuel burn and environmental benefits that are unmatched in the industry. We are very excited about the future of the GTF engine.” The engine maker however, remains on the backfoot as it contin- ues to roll out improvements to alleviate engine related issues with the GTF. Since entering into service in early 2016, the GTF engine for the A320neo family aircraft has demonstrated its promised ability to reduce fuel burn by 16 per cent, to reduce NOx emissions by 50 per cent GTF MRO facilities include:

Pratt & Whitney PW1100G-JM, FARNBOROUGH INTERNATIONAL Columbus Engine Center, PW1500G, PW1900G Columbus, Georgia quality maintenance support for GTF engine customers, and we are excited to see the MTU Maintenance PW1100G-JM network continue to grow and include other Hannover, Germany world-class MRO facilities,” said Eva Azoulay, IHI, Mizuho, Japan PW1100G-JM Vice President, Engine Services, Pratt & Whitney, who added “We are focused on LHT, Hamburg, Germany PW1100G-JM ensuring that the GTF engine operates at the highest level of performance and reliability LHT, Alzey, Germany PW1500G throughout the life of the engine.” FIA 2018 was an indicator that despite the Pratt & Whitney Eagle PW1100G-JM* various challenges faced by the global aero- Services Asia, Singapore space sector, the industry as a whole remains in good health, with record commercial air- Delta TechOps, Atlanta, PW1100G-JM*, craft orders and an increasing number of new Georgia PW1500G* generation airplanes entering service, which EME Aero (Engine PW1100G-JM*, are even more fuel-efficient and environmen- Maintenance Europe), PW1500G*, tally-friendly than ever before. It remains to be seen, if Indian carriers will continue to make Jasionka, Poland PW1900G* large orders as has been the norm for the last NOTE: Upcoming facilities are marked by * few years now. For that, we will have to wait till the Paris Airshow 2019! CH

www.cruisingheights.in August 2018 35 Cruising Heights COVER STORY India spiced up

SPICEJET

f someone had said in December 2014 that that he was hugely networked in the BJP with the SpiceJet would survive and blossom, it would business-friendly government that did not want post continuous profits for multiple quarters an aviation disaster on its hands (so soon after on end, it would have a load factor of over Kingfisher) and so soon after taking office. The 90 per cent for three-years plus, it would very opposite of ‘Acche Din’. orderI over 200 aircraft and it would be the best Tottering as a crisis-ridden airline with losses performing stock in the Indian aviation sector, the of over `1000 crore in 2013-14, with no cash gent would’ve needed to have his head examined. to pay staff and debts, SpiceJet was in a deep, So bad were the salts at SpiceJet that winter, that deep hole. And adding salt to the wounds in anyone tasting it would have easily got a bout of December 2014, the airline was grounded after high blood pressure! It was tottering on the brink oil companies refused to refuel its aircraft due of bankruptcy, briefly grounded, lessors baying to non-payments. The share price tanked and for their planes and the Maran brothers who the all-round assessment was that SpiceJet was owned the airline in deep, deep trouble. And a doomed. new business-friendly BJP government in Delhi That’s the scenario when Avatar-2 began for wondering, what next? Ajay Singh. Singh, who was one of the promoters Cut to circa 2018, more specifically this month of the airline in 2005 before selling his stake to (August) when the first 737-800 Max in SpiceJet Kalanithi Maran in 2010, came back acquiring colours will take off. It has been a remarkable 42 the entire 58.46 per cent shareholding in SpiceJet months of continuous turnaround. Of course, it from Maran-owned Kal Airways Private Ltd in helped that Ajay Singh in his Avatar-2 at SpiceJet February 2015 for `2. The Modi government was helped by the fact that he was a founder of the keen to prevent a bloodbath in the sector gave airline (before he sold his stake to the Marans), the green signal literally like greased lightning.

36 August 2018 www.cruisingheights.in COVER STORY Cruising Heights

Ajay Singh has had a dream run with SpiceJet. The low-cost carrier has become a showpiece for the world: on its way to higher skies with improved performance on all fronts. K SRINIVASAN pieces the SpiceJet saga.

As Bloomberg then reported, “It was a first. Never before in India Inc.’s M&A history has a listed company been sold for less than `5, the deal closed in 15 days and the acquirer exempted from the mandatory open offer to public shareholders.” Of course, fortune favours the brave. And there is no denying that Ajay Singh has been hugely fortunate. Soon after he took over SpiceJet, the price of fuel dropped as if it had encountered a giant air pocket. Second, Boeing not wanting to lose a key player in the Indian battleground went out of its way to support the airline. Between now and 2019, SpiceJet will be getting close to almost a MAX a month—both as replacement and inductions. “They tightened their belt, reduced costs, did a great job in on-time performance, filled up their planes, and brought discipline back to the airline,” recalled Dinesh Keskar, Senior Vice President, Asia Pacific and India sales, Boeing Commercial Airplanes in an interview to the media much STANDING STRONG: The cabin crew of SpiceJet later after SpiceJet had placed another bumper order for aircraft with them: “It ensures that

www.cruisingheights.in August 2018 37 Cruising Heights COVER STORY

our market share and legacy continues in India. difficult days three-and-a-half years back. In one We assisted them to ensure that some of their of his interviews after taking over, Singh told aircraft stayed in their fleet and we helped them Cruising Heights in March 2015: “Airline a little financially as well (December 2014).” shutdowns are very visible things and they are It is something that Singh has gratefully globally visible. So, it’s like a plane crash. When acknowledged in his interactions many a time. a plane crash happens, the whole world gets They advised him, refunded aircraft advances till to know and just like that when an airline goes the airline got back into shape, acted as moral down, the whole world knows.” guarantors to lessors and signed new aircraft And since then it has been a virtual fairy-tale, deals. All of this went a long way to assure the at least so far. Almost on every parameter, the industry and the travelling public on the SpiceJet airline has been a top performer. It is arguably story. Coupled with the tanking of fuel prices it one of the best performing aviation stocks was like handing Ajay Singh a virtual bouquet of globally moving in a rocket like trajectory from roses as a welcome gift. `14 to over `140 (it is trading around 100 these SpiceJet has come a long way since those days). It reported 13 straight quarters of profits, “We need to create our own strengths” On the eve of inducting the B737 MAX, Ajay Singh, Chairman and Managing Director of SpiceJet, in this conversation with Cruising HeigHts talks about his plans with the new planes, the UDAN operations and why he feels the UDAN version of foreign flights are needed.

You are staring at a phenomenal growth – You need to plan, you need to make sure that doubling your fleet in 18 months.. all the resources that you need are in place We have doubled our fleet since the day I took in terms of parking at airports, in terms of over (from the Marans). People said to me that personnel that you need to hire – the pilots, when you double your fleet you’re going to face the cabin crew – all that has to be done well in huge challenges, operating performance will advance. You can’t start doing it as the planes drop, your yields will drop, your loads will come. So, we have put that plan in place, we are drop, etc. We have proven that none of that executing it as per that plan. The other thing actually has happened. Loads went up as we is that from our perspective we need to make grew our fleet, yields went up and in operating sure that the quality of our offering improves terms as well we have now clocked the best on- and consistently keeps improving, because if time performance for a long time, cancellations you remember in our last interview as we were have dropped. By any metric we have actually just starting (just as Singh had taken over from done better by growing our fleet. I feel that Marans) people had actually sworn never to fly in the next 18 months as we double our fleet SpiceJet as we had cancelled so many flights. from here, parameters will only improve, cost metrics will improve, the fuel cost will come 2000 flights cancelled, planes being taken away down because these are more fuel-efficient by lessors… planes coming in now, engineering costs will Planes being taken back, flights being drop and there is no paucity of demand in this cancelled…people had sworn (never to fly country; so, I don’t think that there is going to with us again)…we screwed up big time. Now, be any issue. of course, they’ve come back to fly in large numbers (and) we only need to make sure that Any dos and don’ts you have put in place to make the customer satisfaction that we provided sure there are no glitches? doesn’t drop and in fact improves. So, you will

38 August 2018 www.cruisingheights.in COVER STORY Cruising Heights

and it has had a dream run as far as load factors The first thing Singh did was wet lease aircraft go with over 90 per cent loads for a straight two- (although they were expensive and impacted on and-a-half years. time, there was no option since no one wanted And in May 2015, the company declared its to give aircrafts to them on dry lease) to make first profit—in eight quarters—of `22.51 crore. the best of falling fuel prices. With more flights, A major help in moving into the black was the passengers started returning to the airline the income of over `61.35 crore that SpiceJet and considering the huge tranches of tickets had earned from the insurance claim on a Q400 at been sold in multiple sales, honouring them was Bengaluru. “It is part of life. Sometimes, we pay virtually like restoring faith in SpiceJet. to insurers and sometimes, we get from them,” Behind the scenes, the Cornell-educated Ajay told the Hindu Businessline then. Singh sorted out contracts, got the lessors back Perhaps, the most important building on track, systematically cleared dues, worked block that set SpiceJet on the road to recovery on the ancillary revenue, recrafted the network was getting back its fleet strength. It had gone by dropping routes he saw as meaningless and down to 31 planes from a peak of around 58. unprofitable and completely transformed the

see that the new aircraft product offering is (soon) as far as the options are concerned. It much superior to the existing product and we could be narrowbody, it could be widebody. try and do our best. So, our focus is not really just on yields or profitability but our focus is You always said that you want to go also largely on our consumers to make sure to America, you want to go to Eu- that they are happy. rope. You’re on record for this. So, how’re you going to do it You have the 155 firm 737 Maxs on order plus 50 – with the 50 options? options plus the 50 Q400s. Tell us how you hope Look, the 50 options are for to use this huge fleet? keeping that option open As far as 155 planes are concerned you know and we are studying it. It’s we don’t look at routes as domestic and a question of the numbers international: we look at routes that will make working out. We will profit and these can be domestic, these can be not do something just international – we don’t care. We would just for the heck of it we will keep looking at profitable routes and adding do it when the numbers aircraft and there are enough and more of make sense to us and so them. we continue to work (on it). There are whole bunches of Surat is a good example? Surat is an example. We’ve done Porbandar and Kandla. People said what the hell are you doing with flights here… Pondicherry, you know…to our mind its shocking that there was no flight (there). We’ve started flights to Kandla, to Kanpur – can you imagine the industrial heartland of UP with not a single flight? So, there are plenty of places to go to in this country. Are you going to look at the MAX-9 and MAX-10? That’s not a work in progress. It will happen. The Dash 9 will happen for sure. Boeing is still working the specs of the Dash 10. And the 50 options? The first of the 155 start from August and then they speed up from October. Right now we have enough (on our plate). We are looking at some interesting options and we’ll decide H C TIWARI

www.cruisingheights.in August 2018 39 Cruising Heights COVER STORY

utilisation of aircraft. Today, it is a clean slate, and as Ajay Singh said you are likely to use it for there are no dues (barring the sale leaseback close to ten years. But that’s the model they have of aircrafts), no creditors, no government chosen. overhangs and no banks baying for their blood. For the year ending March 2018, profits have Many believe that too much reliance on the grown by 32 per cent, revenue by 26 per cent, sale-leaseback model could be inimical to the passenger yields (Revenue per Seat Kilometer) long term health of the airline. Till recently that up 9 per cent and a record domestic load factor of was the model in vogue, at least for the sub- 94.7 per cent for Financial Year 2018. They have continent. It is quite simply booking an aircraft had the industry’s highest load factor for three in advance with a small payment and selling it years in a row; over 90 per cent load factor for 35 at delivery to a lessor and then leasing it back successive months. It was the 13th Consecutive and making some money on the sale. The idea is Profitable Quarter and they reported highest- to keep a pretty light book and the opportunity ever annual profit in its history in FY 17-18. to keep planes young. It is no more a good idea On March 31, 2018, SpiceJet’s negative net when brand new aircraft are entering the market worth stood at just `42.97 crore. In other words,

costs which I feel are still high you know and transactions what you do is that you do the so we are looking at it. But first we need to get deal upfront, and when you do a deal of a this induction in place. scale of this the sort that we were doing you get discounts and therefore you save costs and The Q400s? you increase reliability for your fleet. So, that As far as the Q400s are concerned, yes, I had is what we’ve tried to do. Unfortunately, in the told you last time we met that I would not past, previous owners didn’t have… have ordered those aircrafts. I was keen on a single aircraft proposition, which is what we You have consistently said that you want to be had started with at SpiceJet, and so I inherited asset-light. Can you elaborate? what was then a large problem with 5 or 6 Right now, there is a huge demand for these aircrafts that were on the ground requiring airplanes and, therefore, it makes sense when much maintenance and it was a fleet which finance was available at a reasonable cost in was losing a lot of money. doing a sale and lease back as it puts no pres- We had to make the best of a bad situation sure at all. People kept asking me, ‘Are you at that time but what we did was we cleaned up gonna raise money, are you gonna raise debt, the fleet, made sure it was in good operating are you gonna raise equity? How’re you gonna condition and in the end, in fact, Bombardier pay for the aircraft?’ I always told them that gave us this award for flying the Q400s the you do not need to raise any money at all and largest number of hours, in a month on a that’s how it has worked out. We have already global basis. We were flying 11 -12 hours. The financed aircrafts now for the first two years number 2 guy was at 8-8.5 hours. So, we were which is ’18 and ’19 and we’ve started fi- well ahead. nancing the 2020 aircraft and its going very The fleet started to make money, so we smoothly. felt why not and with UDAN coming up we PEOPLE SAID TO thought that it was well worth (having in the The bad legacy when you took over with the ME THAT WHEN fleet). We were the first scheduled airline that lessors, it’s all history now? YOU DOUBLE YOUR got into UDAN and people made a lot of fun It’s all history, every single lessor has been FLEET YOU’RE of us. paid back in full. In fact, every single creditor has been paid back in full. I had given a plan GOING TO FACE As for the CGM engines on the MAX, you have HUGE CHALLENGES, to the creditors and I am just grateful that a very unique by-the-hour contract with them. everybody trusted me and I have paid them OPERATING We just wanted to make sure the engines are before the time I had committed to them. I PERFORMANCE looked after for the next 10 years and we don’t have not asked for a single rupee of haircut. As WILL DROP, YOUR have to bother about them so we went for a by- far as the lessors are concerned, all the lessors YIELDS WILL DROP, the-hour arrangement with the CFM and it’s have been paid. All of them have come back YOUR LOADS WILL right way of doing it. and given back planes – the planes they took and in addition… DROP, ETC. WE Are there issues that came up with the legacy HAVE PROVEN THAT fleet that prompted you to go for this? So, the confidence level is back where it was? NONE OF THAT Of course, the legacy fleet is proven to Confidence level is much stronger than where ACTUALLY HAS be obviously very expensive to maintain it was and we got a huge number of offers when HAPPENED. over a period of time because in all these we wanted to do the SLB (sale lease back). It’s

40 August 2018 www.cruisingheights.in COVER STORY Cruising Heights

its total liabilities were more than the total Although net profit rose 9.5 per cent year-on- assets although the figure is minor. Moreover, year to `46 crore, there was a huge slash in the it is believed Singh has pledged 40 per cent of bottomline, thanks to the over 30 per cent spike his shareholding with lenders to secure loans. in ATF (Aviation Turbine Fuel). It is something Revenue increased 25 per cent to `2,029.4 crore that every airline will have to reckon with and as compared with the same quarter last year. something that came home even more sharply This was helped by an 8 per cent increase in when IndiGo announced that its net profit in passenger yields – the revenue per available seat the April-June 2018 period had been in a tailspin kilometer – and record domestic load factor of with a 97 per cent from the same quarter last 95.4 per cent in the quarter. In a way it helped year and their margins were slashed by more muffle the woes of a rising fuel bill. than half. As the fuel prices have started to climb, Therefore, the unending quest to expand the company had its first blip in May when it its revenue from other streams. Its ancillary missed estimates on profits. That was, thanks to revenues has ramped up from 6 per cent to 17 a rise in fuel costs in the quarter ended March. per cent in the last 24 months. And this includes

the same lessors right and everybody who’s not You went to court against the VGF. Now you’re our lessor has also come and made an offer. So, also asking for VGF in some cases? confidence level is very high we can pick and FIA (Federation of Indian Airlines) acts as choose. We’ve tried to stay loyal to partners: a body which is the collective body of the those who stood by us and who should benefit airlines. The dominant opinion in the FIA at from standing by us at a difficult time. that time was – this is before the first phase actually kicked off, pre UDAN – look, as it is You made this really interesting statement of an the cost of the Indian industry is the highest in overseas UDAN being sort of subsidised. Very the world and, therefore, if the government’s unique concept, very workable with Guwahati as objective was to connect small towns, then a hub. What was the trigger point for you to think they should fund through budgetary grants. of this? Sarkar kare. Passengers ko aur kyun burden For years we’ve exported our hubs to the kar rahe ho - toh yeh unka thought process Gulf states; what we’ve done is, instead of tha (Let the government do. Why burden the India and the airports in India acting as the passenger? That was the government’s thought global hubs, we have allowed carriers in the process) which is why FIA had gone to court. Gulf and Far East to take our traffic, hub from Then we had a dialogue with the government their airports and then distribute it from their and we agreed that we will withdraw that hubs. They’ve developed their hubs, they’ve court case and the scheme went forward. In made money, they’ve built airlines of value. So, that phase of UDAN, we actually did not claim it’s time we started to change that. India has anything. Now, we have participated. We a huge market and we need to create our own were the only scheduled airline to participate strengths and, therefore, Indian carriers will and because of us others (came in). We were have to start taking passengers directly from a catalyst and, in fact, initially everybody India to the destinations that they want to go thought that we were doing something pretty to. So, to make that happen – now, in some crazy and but we did show that it can actually WE WERE A CATALYST cases you know it’s not that remunerative and be profitable, our load factor consistently has AND, IN FACT, could be loss-making for a while – and simi- been 90-plus on those routes and all the routes INITIALLY EVERYBODY lar to this objective of going to small towns in have made money. THOUGHT THAT India, why can’t we replicate the same scheme Which is remarkable… WE WERE DOING for international travel. And I’m just delighted SOMETHING PRETTY to see what’s happening ever since I made that You know it was not that it took two months or statement. Some state governments have come three months to do. So, it was profitable on day CRAZY AND BUT forward and said, fine we will participate. one. We went to town saying this again and WE DID SHOW THAT again that look this experiment has succeeded. IT CAN ACTUALLY Do you see this happening in the next 12 months? I feel that it was because of our foray that the BE PROFITABLE, Oh, certainly. There is a viability gap funding other airlines came in which was good because OUR LOAD FACTOR so that viability gap funding can be filed in this is not about just us – a lot of people told CONSISTENTLY HAS 2 or 3 ways. One is by reduction of taxation. me you should have just kept your bid quiet BEEN 90-PLUS ON You know by reduction of parking and landing for the second round of routes – but that’s not charges and so on and by direct subsidy. So, in in national interest. We want other people to THOSE ROUTES AND UDAN, for example, there is a direct subsidy come and participate. We want as many places ALL THE ROUTES HAVE which has been funded through. to be connected as possible. MADE MONEY.

www.cruisingheights.in August 2018 41 Cruising Heights COVER STORY

At present, under UDAN I and UDAN II, SpiceJet is operating 15 daily flights. SpiceJet has been operating all the flights allotted in UDAN I. And, under UDAN II, it has been awarded 20 new sectors: of which operations has already started. Some of the exclusive routes awarded to SpiceJet include Delhi-Darbhanga, Mumbai-Darbhanga, Delhi-Pakyong, Chennai-Tanjore, Delhi-Kishan- garh among others. One thing worth mentioning Adampur is, under UDAN I they did not sought any Viability Gap Funding (VGF), however, in UDAN II on some routes (5 per cent of total allotted) they are seek- ing VGF.

Delhi Jaisalmer Jaipur

Kanpur Kandla

Porbandar

Mumbai IN SERVICE: 58 Hyderabad • Boeing 737-700: 3 Average • Boeing 737-800: 29 total number • Boeing 737-900ER: 4 of flights: 412 daily flights Hubli • Bombardier Dash 8 Q400 (78 passengers): 22

Connects 55 Chennai destinations (48 ON ORDER: 295 domestic and 7 • Boeing freighter: 20 (plan to international) acquire by 2022) Puducherry • Boeing 737-8 MAX and wide body aircrafts: 225 (Max 8: 20 each, as for 2018,19,20 ) • Bombardier Dash 8 Q400 Under UDAN, NG: 50 (Launch customer of it operates 15 90-passenger model) routes. (see map)

42 August 2018 www.cruisingheights.in COVER STORY Cruising Heights

SpiceJet readies for cargo foray ow that SpiceJet has everything going for The recent Express Industry Report it – high passenger numbers, new flights 2018 also said that e-commerce players had Nand new planes coming in – it only needed “unlocked” many opportunities by providing to get into the cargo business. And, the carrier newer avenues for value addition. The e-retail has decided, according to reports, to open an industry led by Amazon and Flipkart had alternative revenue stream and start freighter brought about disruption in the domestic services. cargo sector with an expected contribution of In fact, according to reports, IndiGo did about `5,000 crore this fiscal, of which the air quite well with its belly cargo movement – it cargo segment would garner around `1,000 earned `8,761 mn from cargo operations in crore, the report said. FY 16-17 – while Jet Airways handled over The freighter services, incidentally, would 227 mn tons of freight in fiscal year 2016-2017. be a bold and brave start for SpiceJet. There When it does – it is supposed to start the have been attempts by quite a few to start services with possibly modified Boeing 737s cargo services: There was low-cost pioneer by 2022 when it receives the planes – it will Capt G R Gopinath’s Deccan 360 that began be the first carrier to have an independent operations in November 2009 with three freighter business. The only dedicated Airbus A310 cargo planes and five ATR cargo freighter services are done by Blue Dart with aircraft. However, the company had to wind its six planes and Quikjet has one. The carrier up operations because the Airbuses faced plans to have a fleet of 20 freighters. maintenance issues and were often grounded. Though industry pundits believe that Reliance head Mukesh Ambani had SpiceJet will have problems filling up the spoken of starting a freighter service that freighters, it must be mentioned that would service the Reliance retail units spread domestic air cargo has been on upward out all over the country. These freighters growth for quite some time. With the boost in would bring in produce – basically vegetables, e-commerce, SpiceJet’s leap into the freighter fruits and other perishables – from Tier-2 business will be welcome and comes at an and Tier-3 cities and fly them to the metros. opportune moment. The air cargo business, Conceptually, it was a great plan but is yet to a recent ICRA report mentioned, will see see the light of day. volumes growing by 60 per cent over the Even Jet Airways had in 2015 announced next five years. Harsh Jagnani, ICRA sector its plans to set up a cargo airline. In fact, the head for corporate ratings was quoted saying carrier also obtained the necessary approvals that growing e-commerce, improving air from the authorities to lease freighters connectivity across small airports in the from its partner Etihad but the plans were country and growth in GDP were expected to discontinued due to the fuel price hike and result in growth in air cargo traffic. other issues.

Spicestyle and value-added services on the fuel price hits an unsteady patch, new aircraft ground and on air. start arriving each month and SpiceJet doubles Also, after having slammed the government its fleet to 120 by the end of next year. It brings for asking the airlines to underwrite the forth the need for a remarkable dose of planning, ambitious Ude Desk ka Aam Nagarik (UDAN) dexterity and the hope that the cyclical slump saga, SpiceJet that went to court with the rest of that afflicts aviation will not come in this phase. the industry barring Air India, did an about turn So, far barring the fuel bumps, almost every and chose to apply for multiple routes in UDAN- parameter has been favourable. And there is a II. Ajay Singh also reversed course on the Q400s sense of deja vu and confidence at the Gurgaon that he thought was a strain on the airline and headquarters. Most importantly, Lady Luck has ordered 50 of them. Like IndiGo he has realised stayed by Ajay Singh’s side as evidenced in the that the next phase of growth will come from the almost effortless manner in which the arbitration hinterland. went in his favour in the battle with the Marans. The airline has launched operations to five That’s a big load off his back. After all, if it had destinations under UDAN and is setting a tearing gone against him, the liabilities would have been pace to connect the other dots. In the process, huge both in terms of cash and shareholding. the airline has achieved remarkable efficiency of Let’s hope the fuel price holds and the operations for both the Bombardier (at 12 hours passengers keep flocking. In real terms that’s each day) and the Boeing 737 (at 14 hours). ultimately the make or break for any good Perhaps, the real test will now come as the airline! CH

www.cruisingheights.in August 2018 43 Cruising Heights FOCUS FEATURE

nQ&A “Ability of Q400 to carry more passengers is a big advantage” Speaking to Cruising HeigHts on the sidelines of the Farnborough Airshow, Francois Cognard, Vice President, Sales, Asia-Pacific, Bombardier Commercial Aircraft pointed out that the Q400 was the best suited for India’s aviation needs.

l What are Bombardier plans for the Indian some point to convert the options with the airline market related to the Q400 regional transport into firm orders. We expect to complete delivery aircraft? of the 25 aircraft order to SpiceJet by around 2020. We are doing quite a lot in India and have a strong presence in the market. SpiceJet is our lead custom- l Do you view any potential for the CRJ family er and purchased 25 Q400 aircraft last year with in India? options for 25 more. SpiceJet is also the launch cus- Yes, this is because there are a lot of start-up air- tomer for the 90-seat Q400 variant. All the aircraft lines in India and while there is a requirement selected will be configured with 90 seats, which is for new aircraft, used CRJs would certainly prove the maximum we can have on the Q400. This pro- useful, especially in the 50-seat category. There is vides a highly competitive economic advantage to already an airline flying the CRJ in India and there the airline as the increased number of seats reduces is a lot of interest. In the Indian sub-continent the cost per seat by about 15 per cent and generates and India itself are places where we see the most greater revenue. This configuration with 90 seats is interest for used CRJs. There are plenty of very just not possible with our competitor ATR. We are good used aircraft available and it is a very good scheduled to deliver the first 90-seater to SpiceJet in aircraft that can address a range of requirements. September and we want to keep them happy with In addition, we have really enhanced our support the customer support as well. We will also look at services in the region. We now have a large office

44 August 2018 www.cruisingheights.in FOCUS FEATURE Cruising Heights

in New Delhi where we offer excellent support for be operated profitably on shorter regional routes. these aircraft in India. CRJ aircraft are also flying in The passenger growth in India at 20 per cent year- Nepal with several operators. Last but not least, in on-year is phenomenal, so low cost airlines need the CRJ1000, we have an ideal 100-seat regional jet bigger regional transport aircraft. The airplane has that could be used to serve thinner routes in a more an extremely good take-off capability and it is much profitable manner than larger single aisle aircraft. faster than the competitor. So, this allows airlines to fly their Q400 aircraft for one additional sector over l What is the update on cabin upgrades for the the course of the day, which is again a major com- CRJ and Q400 family? petitive advantage against our competition. The We unveiled the new CRJ ‘ATMOSPHÈRE’ cabin at aircraft is very flexible and Q400 aircraft also have the Farnborough Air Show and we feel it is a fantas- an on-board APU (which our competitor does not tic offering. It is much more than just a cabin refresh have) which results in the on-ground air condition- as it brings real value to the customers with larger ing of the Q400 being superior to the competitor. overhead bins and cheaper maintenance costs. It is Finally, we can have boarding from the front and a more modern cabin with bigger windows and full back, enabling airlines that have Business Class to LED lighting, with available mood lighting effects let passengers board from the front. that can create specific branding environments and a pleasing, passenger-friendly experience. l What is the MRO capability set-up for the The new ATMOSPHÈRE cabin on the CRJ Q400 in India? Please elaborate on MRO con- will allow our airline customers to have a seamless tracts with SpiceJet? transition for their passengers from new generation SpiceJet has its own MRO teams for their aircraft single-aisle aircraft to our airplane. With this cabin and we offer them all the maintenance support we can also go up to 76 seats, which is a big plus for they require. We are leaving the MRO support to our airline customers. We are also investigating as the requirements of the operator and can support to how we can provide some of these features on them as needed. SpiceJet has the highest utilisation the Q400. rate for the Q400 anywhere in the world. l Is there provision for installation of IFE (in- l What is the status of a Q400 in terms of offer- seat or wireless) on the Q400? ing either a new wing, fuselage stretch, improved In-seat or wireless In-Flight Entertainment (IFE) more powerful turboprop engines as also incor- systems are already available on the Q400 and are porating other technologies from the CSeries used by our customer ANA of Japan’s regional arm, programme? Wings. They do have Wi-Fi onboard and we are We are looking at a lot of things and at the moment, looking at upgrading this system. This is a customer what is very important to us is that there is no plan requirement that we can meet, one to stretch the airplane. We are very happy with that is becoming increasing- what we have in terms of the aircraft configuration ly important, especially at the moment, in terms of seating, the capability for tech-savvy Asian to accommodate 90 seats fits the market need carriers. perfectly. We are always looking to enhance our products for our airline partners’ benefit. l What are the However, a new engine is not something unique advantag- that we are looking at immediately, although es of operating it is something possible in the future but not the Q400 for any in the short term. other potential operators of the l How will Bombardier assist potential THERE IS NO PLAN aircraft in India? Indian airline partners with sourcing TO STRETCH THE Beyond the operat- trained aircrew as there is an industry-wide Q400. WE ARE ing cost, the ability shortage in this regard at the moment? VERY HAPPY to carry more passen- We are really trying to facilitate this, and we WITH WHAT WE gers is a big advantage of have simulator facilities in India. There will be HAVE IN TERMS the Q400. There is also a new Q400 simulator that will be operational in the fact that single- India in October and it is essential to grow this OF THE AIRCRAFT aisle airplanes are capability as it will save on an airline having to CONFIGURATION AT getting bigger send their pilots abroad for training and THE MOMENT, IN and cannot hence increase productivity. CH TERMS OF SEATING, THE CAPABILITY TO ACCOMMODATE 90 SEATS FITS THE MARKET NEED PERFECTLY.”

www.cruisingheights.in August 2018 45 Cruising Heights FOCUS New star on the horizon When Airbus completed its acquisition of Bombardier’s CSeries aircraft programme and became a majority stake holder with 50.01 per cent, it was seen as a step in the right direction by operators. And rightly so because Airbus wants to target the 100-150 seat market with the new addition in its family, reports C SANTHOSH.

irbus has completed its acquisition of A220-100 and A220-300. Airbus will now be Bombardier’s CSeries aircraft programme able to cover the market segment between 100 and the type has been renamed A220 by the and 150 seats, with the A220-100 and A220-300, European aircraft manufacturer. The newly without having to invest billions of dollars in the Arenamed A220 family will target the 100 to development of an all new aircraft. “The A220 is 150 seat market, complementing Airbus’ best- now a full member of our family and we are all selling A320neo family. Unveiled in new Airbus ready to unleash the full potential of this aircraft livery in July, the A220 also made its maiden for the benefit of our customers, shareholders, appearance at the Farnborough Airshow, where passengers and employees,” said Guillaume it attracted strong interest. The new A220 family Faury, Airbus President Commercial Aircraft, benefits from the clean-sheet design which makes following the unveil of the A220. The A220-300 it lighter and able to carry more passengers over is powered by Pratt & Whitney GTF engines and longer distances as compared to 737 Max and along with its advanced aerodynamics, extensive A320 NEO family. The direct competition for the use of Carbon Fiber Reinforced Thermoplastic A220 in terms of market segment are the B737- (CFRP) materials, and fly-by-wire controls, 7MAX (typically 126-149 seats) and the A319 will deliver 20 per cent lower fuel burn per seat NEO (typically 124-156 seats). compared with previous generation single-aisle Formerly Bombardier’s CSeries (CS100 and jetliners. CS300), the new A220 family comprises the While Bombardier struggled to garner orders

46 August 2018 www.cruisingheights.in FOCUS Cruising Heights

for the CSeries for years, despite the aircraft being widely recognized as the most advanced and efficient in its class. The now renamed A220 family will benefit from Airbus’ global reach, scale, procurement organisation and expertise in selling, marketing the state-of-the-art jet aircraft family in the 100-150 seat market. “The A220 already is generating great interest among potential customers. Our new colleagues have built something quite extraordinary. I don’t think it will be long before we hear news from the market. “I can assure you that work is well underway to make the A220 a commercial success, the market leader for aircraft between 100 and 150 seats,” says Eric Schultz, the Airbus Chief Commercial Officer. Schultz adds. “We trust that this segment could total as many as 7,000 aircraft over the next 20 years – that’s an exciting prospect.” Airbus SAS, a wholly-owned subsidiary of Airbus SE, Bombardier Inc. and Investissement Québec closed the CSeries transaction on July 1, following which Airbus became a majority stake holder (50.01 per cent) in the CSeries Aircraft Limited Partnership (CSALP), while Bombardier 300s. JetBlue also has A320neos and A321neos and Investissement Québec, own approximately on order. “We are evolving our fleet for the future 34 per cent and 16 per cent respectively. of JetBlue, and the A220-300’s impressive range Airbus had announced that it would acquire a and economics offer us flexibility and support majority stake in the CSeries Aircraft Limited our key financial and operating priorities,” said Partnership (CSALP) in October 2017. CSeries Robin Hayes, the airline’s Chief Executive Officer. airplanes are currently built in Canada, though “JetBlue’s selection of the A220 aircraft as a a growing market for the airplane could support complement to its growing A320 Family fleet is a second Final Assembly Line in Alabama, a tremendous endorsement – both of the A220 serving U.S. customers. With CSeries’ head itself and of the way these two aircraft can work office, engineering and R&D activities remaining together to provide airline network flexibility and in Québec, Montréal will emerge as Airbus’ a great passenger experience,” said Eric Schulz, largest research and development centre outside Chief Commercial Officer for Airbus. Airbus Europe. Bombardier invested USD 500 million also inked a MoU from a new U.S. airline start- in a new composite wing manufacturing process up at Farnborough for 60 A220-300s. Deliveries at its facility in Belfast. Expensive robots have are to start in 2021. David Neeleman, founder been installed for manufacturing the airplane of JetBlue, investor in TAP in Portugal and Bombardier’s plant in Mirabel. The cockpit and controlling shareholder in Azul airlines in Brazil THE WORK IS fuselage are produced in a brand new pressure is the majority investor in the new venture. “The WELL UNDERWAY and temperature controlled white room. CSeries A220 will enable us to serve thinner routes in aircraft deliveries continue to increase on the comfort without compromising cost, especially TO MAKE A220 back of production ramp-up and after 17 being on longer-range missions. With deliveries A COMMERCIAL delivered aircraft in 2017, double that number is starting in 2021, we will have ample time to SUCCESS: THE slated for delivery to airline customers in 2018. assemble a world-class management team and MARKET LEADER Airbus has got off to a running start with the another winning business model,” he said. FOR AIRCRAFT newly-rebranded Airbus A220 and US airline Prior to the CSeries programme being taken BETWEEN 100 AND JetBlue is the first customer for the aircraft with a over by Airbus, Bombardier Commercial Aircraft 150 SEATS. WE Memorandum of Understanding announced late in May, (MoU) for 60 A220- that AirBaltic had TRUST THAT THIS ordered 30 CS300 SEGMENT COULD (now A220-300) TOTAL AS MANY AS aircraft with options 7,000 AIRCRAFT and purchase rights for 30 OVER THE NEXT 20 more. If the entire order for 60 YEARS." aircraft goes through, then the order — ERIC SCHULTZ value (at list prices) would be worth $5.9 bn. Aircraft deliveries from the new Chief Commercial order are slated to start from Q4 2019 Officer, Airbus

www.cruisingheights.in August 2018 47 Cruising Heights FOCUS

information is projected on the glare shield during important flight moments. The CSeries was the first aircraft to use the same symbology for the HUD as well as the MFD. These features will help increase the Situational Awareness (SA) in critical phases of flight also reduce the amount of training required. The Flight Management Systems (FMS) tabulates tasks in a natural order, making it easier than ever to navigate through it. The FBW system has only 2 modes: Normal and Direct, this means, there are less memory items to remember. The electronic checklist on the A220 is organised by priority items with the cursor conveniently positioned for the next task and the PC-like interface makes navigating through the pages simple and direct. The A220-100 and A220-300 also have over 99 percent parts commonality between them, as well as the same pilot type rating, which is another important attribute. The A220-100 will typically have a 116 seat DECKED UP: Inside an and the carrier had earlier placed orders for 20 configuration but can accommodate a maximum advanced cockpit of A220, aircraft. airBaltic is the largest European CSeries of 135 passengers. The A220-100 offers a range of having dual mode Fly-By- customer with 50 aircraft on firm order and the 3,100 nm range and exhibits a take-off field length Wire (FBW), auto-throttles and Head Up Display (HUD) second largest customer worldwide. “As an early as short as 1,220 metres, which makes it ideal for adopter of the CSeries, we took a forward-looking hot-and-high and city-centre airport operations. decision on advanced technology to support The A220 is the first commercial jetliner to use an our turnaround plan leading to sustainable electric braking system, which not only increases profitability, and today we are benefiting from efficiency and reduces wear but also provides a the most fuel-efficient small single-aisle aircraft. softer landing for passengers. With demonstrated fuel savings of more than When Bombardier started the CSeries 22 per cent, the CS300 aircraft plays a vital role programme, it proceeded with a risky clean- in maintaining our operating cost at a low level. sheet design to bring about a significant advance In 2017, we experienced outstanding growth in single-aisle jetliner aircraft. The aircraft that and showed the world the unique capabilities emerged brought with it a number of path- and comfort of this innovative aircraft. We breaking technologies. The clean-sheet design successfully executed our fleet modernisation of the A220 also means that it is up to 5,440 strategy, and are excited to further grow our fleet kg lighter than its competitors and the twin up to 80 CS300 aircraft while phasing out our Pratt & Whitney PurePower PW1500G geared other aircraft types in the next three years,” said turbofan engines with a bypass ratio of 12:1, Martin Gauss, Chief Executive Officer, airBaltic. deliver 20 per cent lower fuel burn per seat The airline currently has a fleet of eight A220- than previous generation aircraft, half the noise 300s. Speaking to Cruising Heights at the footprint, and decreased emissions. Bombardier 2017 Dubai Airshow, Gauss said that airBaltic officials speaking to Cruising Heights at the was utilising its CS300s (now A220s) 17 hours Dubai Airshow, said that the CSeries had been A220 IS NOW A each day and that the airline was working them designed to deliver significant improvements in FULL MEMBER OF very hard. the cash operating cost versus other single-aisle OUR FAMILY AND The A220 also features an advanced cockpit jetliners to the tune of a 10-12 per cent cash WE ARE ALL READY layout with dual mode Fly-By-Wire (FBW), operating cost advantage. The use of composites TO UNLEASH THE auto-throttles and Head Up Display (HUD). The and advanced aluminium alloys on the wing, FULL POTENTIAL cockpit has already demonstrated its ability to empennage and nacelle, provide significant reduce pilot workload and increase situational maintainability advantages and cost efficiencies OF THIS AIRCRAFT awareness. The FBW is controlled with a side as well. Performance is also enhanced due to the FOR THE BENEFIT OF stick in the cockpit (similar to Airbus jetliners) as use of a carbon fiber wing design. OUR CUSTOMERS, compared to Boeing aircraft which use a control The A220-300 will typically seat 141 SHAREHOLDERS, stick that takes up more space and weight. The passengers but can accommodate up to 160. From PASSENGERS AND FBW is designed with both soft and hard stops in the passenger perspective, the chief impression of EMPLOYEES." the controls , so if the pilot wants to go beyond the the now renamed A220s cabin is that it delivers hard stops, he/she can do so and is an important the feel of a widebody jetliner in a single-aisle — GUILLAUME FAURY attribute. The auto throttle levers also move. aircraft. The highlights of the cabin are not only the President, Airbus All the information for the pilot is displayed on wider seats and a wider aisle to allow for efficient Commercial Aircraft five big Multi-Function Displays (MFDs). Key boarding/deplaning but also overhead bins which

48 August 2018 www.cruisingheights.in FOCUS Cruising Heights

are easily accessible and have the largest stowage capacity in their class, extra-large windows, which are as big as those on the B777 and 50 per cent larger than those on the A320, are positioned high on the cabin sidewall providing an optimal viewing angle and an abundance of natural light and adjustable LED lighting to customize cabin experience. The spacious seats also contribute to the overall feeling of spaciousness and wellbeing. The biggest difference of the A220 as compared to the A320 and 737 is that its aisle is wider and the middle seat is wider. Also there is only one middle seat. airBaltic’s A220s are configured with 148 seats. Seating configurations on the original CS300 ranged from dual class seating 108 passengers at 38’’ seat pitch in Business Class and 32’’ in Economy, to single class super high density seating 160 passengers at 28’’ seat pitch. Several entertainment and connectivity options such as in-seat audio/video on-demand; cabin successful business jet and regional commuter will WELCOMING THE NEW Wi-Fi connectivity for on-board entertainment be ruing the decision to take the costly gamble of ONE IN THE FAMILY: Employees welcome the distribution; web-browsing via the latest developing the first clean sheet single-aisle jetliner A220-300 to Airbus’ delivery generation satellite and ground-based network; in decades. Over the last 10 years, the CSeries centre adjacent to Toulouse, and on-board mobile telephony will be available. programme diverted Bombardier’s attention Blagnac Airport in France, While Indian carriers have gone in for large from its other profitable aircraft programmes where the A220 Family orders for the A320neo family, they could now and the mounting troubles ultimately caused the identity was revealed for the be more amenable to considering the A220 as it Canadian airframer to admit defeat and find a newest addition to Airbus’ falls under the Airbus umbrella. Aviation experts suitor in Airbus. Bombardier has spent in excess single-aisle jetliner portfolio feel that the CSeries could perfectly suit Tier-3 of $5 bn dollars on the CSeries programme. cities in India, where larger aircraft such as the Despite Bombardier’s obvious technical A320 and 737 serve many destinations. However, excellence and experience in selling aircraft all it doesn’t make sense to operate these aircraft on over the world and Bombardier officials insisting routes where there are less passengers. Engine that the 110-125 seat CS100 and 135-160 seat commonality with Pratt & Whitney PurePower CS 300 were aiming for a slice of the mart in the engine operators and the hot-and-high gap between the largest regional jets which can performance of the aircraft could liberate a niche accommodate a maximum of 80 passengers and for the A220. The efficiency of the aircraft could the smallest variant of the A320 and 737, which also prove attractive; launch operator airBaltic seat approximately 125 passengers. Airbus has said, that as compared to its 737-300 Classics, now enters into the market segment below the A220-300 (earlier named CS300) delivers a 21 the A319 for the first time. This marks a major per cent improvement in fuel efficiency. The high threat to regional aircraft manufacturers such as parts commonality and the fact that the A220- Embraer and new entrants like the Mitsubishi AS AN EARLY 100 and A220-300 share the same pilot type Regional Jet, who will now need to fight it out ADOPTER OF THE rating, could also be a plus as airlines in India are with the European aviation giant for orders. already facing pilot shortages. The smaller A220 is Not wanting to lose out to its chief rival Airbus, CSERIES, WE ideal for services from airports which have short Boeing announced in July that Brazilian aircraft TOOK A FORWARD- runways and require steep landing approaches manufacturer, Embraer would join it to form LOOKING DECISION and is the only commercial aircraft specifically a strategic partnership, where the commercial ON ADVANCED designed for operations at challenging airports. aircraft and services business of Embraer would TECHNOLOGY TO SWISS operates the A220-100 from London City strategically align with Boeing's commercial SUPPORT OUR airport and completed two years of operations development, production, marketing and TURNAROUND PLAN with the aircraft in June. There remains only one lifecycle services operations. Boeing will have an Asian customer for the A220, that is Korean Air, 80 per cent ownership stake in the joint venture, AND TODAY WE ARE which has 10 aircraft on order. India will be a vital while Embraer will retain 20 per cent stake under BENEFITING FROM market for the new aircraft as it is predominantly the terms of the agreement. This transaction is THE MOST FUEL- a market for single-aisle aircraft. It remains to expected to conclude by the end of the 2019. In EFFICIENT SMALL be seen if any Indian carrier will switch some spite of its teething troubles with earlier parent SINGLE-AISLE of its A320 orders to the A220. However, the Bombardier as the CSeries; the A220 has all the AIRCRAFT." possibility of the A220 entering service with an attributes of a successful airplane. Airbus has — MARTIN GAUSS Indian airline post 2020 is quite high. the requisite engineering might, market muscle In hindsight, many of those at Bombardier’s and customer base to turn the A220 into a sales Chief Executive Officer aerospace business which comprises a highly success and a real headache for Boeing. CH airBaltic

www.cruisingheights.in August 2018 49 Cruising Heights UPDATE ‘Saab sees a huge potential for its remote ATCs in India’ As the country invests substantially in upgrading its infrastructure in all domains – with the focus on smaller, regional airports – Saab’s remote tower concept is being widely discussed by both the Airports Authority of India (AAI) and the Directorate-General of Civil Aviation (DGCA). Saab believes its technology will provide the perfect solution that can help AAI operationalise airports in far-flung areas. JOHAN LANDIN, Vice President, Marketing & Sales, Saab Digital Air Traffic Solutions and VARUN VIJAY SINGH, Marketing Director, Air Defence and ATM from India Office talked to Cruising HeigHts. Excerpts from the conversation:

How many airports are connected to your solution? existing air traffic control tower) Saab and the Swedish Air Navigation Service • IAA, Ireland (Cork and Shannon Airports Provider (ANSP) LFV, began development controlled from Dublin) of the Remote Tower concept in 2006. Since Several customers have Saab Remote Tower then, they have gained an unparalleled level of systems on order and are preparing to launch experience in delivering market-leading remote operations. These include: tower technology and operational projects. The • Swedavia, Sweden (Umeå, Kiruna, Malmö Saab Remote Tower solution has been in regular and Östersund to be controlled from daily use at Örnsköldsvik airport since April 21, Stockholm Arlanda Airport) 2015 -- the first such system in the world. • Scandinavian Mountains Airport Sälen, To date, Saab has successfully supplied Sweden (to be controlled from the RTC in Remote Tower solutions to the following Sundsvall) WE ARE TALKING customers: • NATS, UK (London City Airport to be • LFV, Sweden (Örnsköldsvik, Sundsvall, controlled from Swanwick) TO THE AAI. IT IS Linköping Airports controlled from RTC • Cranfield University Airport, UK (To be UP TO THEM TO Sundsvall) controlled locally) DECIDE. WE ARE • Airservices, Australia (Alice Springs Airport The Saab solution has also been used in the SUPPORTING THEM controlled from Adelaide) Single European Sky ATM Research (SESAR) WITH EVERYTHING • Avinor, Norway (Röst and Väröya Airport and development programme and has been the WE CAN INCLUDING controlled from Bodö) foundation for numerous tests and validations OUR INVALUABLE • LVNL, The Netherlands, Schiphol Airport programmes in Sweden, Ireland, the Netherlands (Remote Runway operation), Groningen and Norway with excellent results. EXPERIENCE.” Airport. • Leesburg Executive Airport, VA, USA (Local Which airports in Sweden are you already serving? – VARUN VIJAY SINGH operation augmenting an airport without an Sundsvall Airport and Örnsköldsvik Airport.

50 August 2018 www.cruisingheights.in UPDATE Cruising Heights

Linköping Airport will start operations later this delivered this year. year. Scandinavian Mountains Airport in Sälen should be operational in 2019. This airport will Of the two you are already operating, what is the kind become the first airport in the world that has of traffic in a day? never built a conventional air traffic control General aviation with some scheduled traffic tower and has gone directly to remote service and some scheduled domestic traffic with some provision. This will be operated from the centre international as well. at Sundsvall. Where you place your equipment will depend on the Of these four, two of them are already operational traffic. What have you placed in these two airports in and two of them are about to start. How long will that terms of technology? take? I don’t see it that way, for example we have Linköping Airport will become operational this been showcasing here what we have done at year and Scandinavian Mountains Airport in London City Airport and Schiphol International 2019. Amsterdam airport. The number of movements is not an issue for us. How about the UK one? We have already delivered to Cranfield University Does the number of movements decide on the kind of Airport and the process of obtaining operational equipment you put up at the airport? approval has been ongoing. London City will be No.

www.cruisingheights.in August 2018 51 Cruising Heights UPDATE

Are you also talking to others in the international in the market because we are the only ones who market where there is more traffic? have actually done it. Yes. When the project started initially it was aimed primarily at smaller regional airports but One of the common concerns – and a very basic what we are seeing now is that it’s being applied one at that – is the issue of electricity. There is no to the big international airports and major hubs. power backup in your system. So, when there is a All the big hubs are looking into this technology power outage, how reliable will your system be? now, predominantly as a contingency solution. What happens if we have a power outage? We use So, for example, Singapore is looking into it; procedures to mitigate risks exactly like we do in Hong Kong is looking into it, so is London’s a conventional tower if we have a power outage. Heathrow. Everyone is interested in this Because a power outage can actually occur in a technology as a contingency or backup solution. conventional tower as well. And how they deal with that is another operational procedure. We What’s the kind of interaction that you have had in have the exact same thing in a remote tower. India for this? Which regional airports will you try And that was our philosophy from the start. We to place your equipment in? want to build something that was so similar to a We are talking to the AAI. It is up to them to conventional air traffic control tower is possible decide the specific airports that could benefit – meaning that our system, our solution does fit from such technology. We are supporting them in to existing rules and regulations and that’s an with everything we can including our invaluable important point to make. We don’t have to make experience. We see a huge potential in India any changes to the existing rules and regulations. as the country is investing substantially in upgrading its infrastructure in all domains. Can we assume that there will be a technical team from your end that will be able to manage last min- Take for example Gulbarga. It is one of the airports ute hassles or any equipment malfunctioning? that is about to be constructed. I think there are two No, the system is designed so that it is very, very of them, some kilometres range that can be man- easy to do the first line of maintenance. That’s aged simultaneously from one place… done by local people only. So, everybody thinks Currently in Sweden, Saab has taken the next that we are taking all the people away from the step by utilising one controller to monitor airport. The airport will become deserted .That’s more than one airport at the same time. What not the case. We are only taking the air traffic you see on the screens is multiple operations controller out of the tower. The fire brigade will or simultaneous operations being done by Air still be there, the check-in people, the security Traffic Control Officer (ATCOs). We utilise one guards, everyone will be there except the air controller in the tower here for three airports. traffic controller. That’s the person we are taking The plan for LFV, the Swedish service provider, out and put in a centre. has been to start with two airports and eventually move on to multiple airports. Simultaneously When you have a technical team on ground to man- controlled airports would be those that have low age the backup what’s the type of training schedule required to be ready for such a new technology? SAAB AND LFV traffic density. Controllers sitting at one centre will then be able to control all such airports. Not much. What we have done is we have HAVE TOGETHER relocated the controller away from the local FORMED What are the main concerns of the AAI about the tower. All the other equipment will still be there. SAAB DIGITAL remote ATCs? The maintenance people and those responsible AIR TRAFFIC I don’t think they are specific to India… for the other equipment such as the navigation SOLUTIONS THAT systems, Instrument Landing System (ILS), No, I am talking about technology that doesn’t have airport lighting – they are all still present. There WILL LEVERAGE any human interference and because this is still a THE TECHNOLOGY, are relatively little new equipments, such as the remote thing for you? cameras, and the same people can, of course, EXPERIENCE I think that’s our strength. We can answer many maintain them as well. It’s well within their AND CAPACITY of the questions because we have responded to capabilities. WITHIN SAAB, these questions once already. THE OPERATIONAL You are independent to choose your own vendors… EXPERIENCE What kind of questions did they ask? We are interfacing with the existing system on WITHIN LFV AS Well many of the questions were: What if… this the airport. So, they will control the system WELL AS THE or that happens? All these types of questions we in the exact same fashion – the controllers, as have responded to when the Swedish regulator they are doing it in the conventional tower. The EXPERIENCE TO was asking us these questions when we stated only thing that we have done is we changed the GET IT CERTIFIED this journey. And given that we stated this project windows in the tower and has replaced software- INTO OPERATION.” in 2006, we have significant experience from based windows with that. By doing that we can working the project and we do have answers to move the controller to another room at either – JOHAN LANDIN these questions and I think that makes us unique the local airport or some distance away from

52 August 2018 www.cruisingheights.in UPDATE Cruising Heights

the airport. Also, with this, we have provided a (EOI) and a request for flexibility and service provision, meaning that budgetary quotation we can utilise the controller in different ways. for controlling Surat Perhaps, the controller will serve one airport in from Ahmedabad. the morning, another airport in the afternoon. Ahmedabad will have Think of ambulance flights, for example, we a contingency tower can open up an airport in a much more flexible and Surat will be fashion than we could have done before because controlled from there we can provide air traffic control service on as well so there be demand. two towers essentially and we have done a How much time will it take to install one facility? site survey on both of The first one will, of course, take some more them. time than the other ones. When is the implemen- What type of timeframe do you have? tation going to happen? I don’t think that’s for me to answer. But I As soon as we win know we can deploy our system very quickly. this programme we Then, of course, you have the implementation, are ready to come integration and the certification that follows. in and deliver our product. We have Have you talked with the DGCA about this because regular interactions it’s a new technology? with the DCGA and We are briefing all the relevant stakeholders in the AAI officials here India right now. in India. The AAI and the DGCA have also How much time did the second one take? visited our operational Significantly less time (than the first). Our core Remote Tower in Sweden. In a first, the AAI and strength has been that we have a process where DGCA officials landed and took-off from an we have learnt from being the pioneer of this airport controlled by a remote tower. solution. This experience will serve our customer in reducing risks and time to implementation. How long will the certification process take? Saab comes with a lot of experience in helping Another concern is that in India we may have to the government certify this service. We would wait for a long time to accept the technology and be supporting the AAI and the DGCA to certify then we want its speedy implementation. this solution as fast as possible. LFV has invested 32,000 man-hours in just preparing the documentation for the first phase. Has DGCA also asked you in terms of supply? AS SOON AS WE WIN I think we reduced the time taken by 50 per cent Yes. We have given them a white paper so they THIS PROGRAMME for second one and further 50 per cent for the know what this concept is. They have also seen WE ARE READY third one, this is really the unique selling point the product in live operation in Sweden as well of our solution. Saab and LFV have together as a demonstration in India. TO COME IN AND formed Saab Digital Air Traffic Solutions that DELIVER OUR will leverage the technology, experience and The weather conditions in India are different from PRODUCT. WE capacity within Saab, the operational experience Sweden. Is your equipment capable of withstand- HAVE REGULAR within LFV as well as the experience to get it ing high and low temperatures? INTERACTIONS WITH certified into operation. Hence, in our Remote We have been very fortunate from the start THE DCGA AND Tower Solution, technology is only a small part that we were able to get a pilot project THE AAI OFFICIALS of our solution while the rest is operational in Australia, in Alice Springs. We were implementation and help with certification. controlling Alice Springs from Adelaide and HERE IN INDIA. THE With Saab’s extensive experience, we believe testing our equipment there. There are dust AAI AND THE DGCA that we will meet all expectations set by the AAI. storms in Alice Springs exacerbated with very HAVE ALSO VISITED high temperatures, very similar to parts of OUR OPERATIONAL Anything else you want to add? India. We were also in the north of Norway REMOTE TOWER IN Saab has been interacting with AAI for the on the coast where we had salt sprays from the SWEDEN. IN A FIRST, past three years regarding our Remote Tower Atlantic Ocean trying to ‘destroy’ the system THE AAI AND DGCA technology. With the current government’s – you know what I mean - including extreme Regional Connectivity Scheme UDAN (Ude Desh winds. To add to all this we also have the OFFICIALS LANDED Ka Aam Nagrik), we believe we would be able to wind chill climate in Sweden. As you can see, AND TOOK-OFF help AAI operationalise airport at far-flung areas. we have a range of different types of climate FROM AN AIRPORT We are participating in the pilot project with conditions to test the system before it comes to CONTROLLED BY A AAI. We have received an Expression of Interest India. CH REMOTE TOWER.”

www.cruisingheights.in August 2018 53 Cruising Heights ENGINES

OPPORTUNITIES GALORE FOR INDIA As the global MRO industry transitions towards new technology, India’s MRO market could find new opportunities – if only the right environment is created, writes C SANTHOSH.

he recently-concluded Farnborough International Air- by-the-hour” (PBH) contracts, which could be undertaken show 2018 (FIA 2018) showcased once again the enor- by MRO firms in India. Indian MRO companies could also mous opportunity that awaits India in the MRO market. greatly benefit from the increasing drive towards outsourcing Successive governments have failed to enable growth maintenance-related activities. The Airbus forecast also con- Tin the MRO sector, which has allowed other countries cluded that the growing requirement for composite repairs to establish them as MRO centres due to active government capability – jetliners such as the B787 and A350 feature com- support and business-friendly policies. Airbus’ new Global posite fuselages and the A220 features a composite wing – will Services Forecast released at FIA, identified a worldwide mar- drive the trend for further outsourcing. Engine PBH contracts ket for commercial aircraft services from 2018 to 2037 valued in particular, will also be a significant growth area as it allows at $4.6 trillion. The forecast mentioned that “aircraft-focused airlines to secure and predict their maintenance costs. Air- lifecycle services represent the largest segment of growth and lines are now also showing a greater inclination towards out- include maintenance, spares pool access, tooling, technical sourcing inventory management of stocks and spares to take training and system upgrades – which are needed to keep the advantage of pooling, thereby saving on having to invest in the airlines aircraft flying”, which would represent a cumulative procurement and storage of their own stocks of equipment. market value of $2.2 trillion by 2037. Keeping this in mind the decision to tax the Indian MRO These services are provided throughout the lifecycle from industry at 18 per cent must be considered a retrograde step as design to dismantling and the large aircraft orders from Indi- it has made MRO work costlier than already established com- an carriers could provide a real fillip towards delivery of “paid- petitors in other countries, forcing business away from India.

54 August 2018 www.cruisingheights.in ENGINES Cruising Heights

The long-term impact of this high level of taxation will also be enormous as it is not only driving much-needed investment away from the expert country but also preventing the creation of new MRO facili- back in ties that will provide highly-skilled and well-paying jobs. Rolls-Royce’s India’s successful Information Technology (IT) and soft- Aircraft Availabil- ware industry do not appear, as yet, to have made a mark ity Centre who would with regards to ‘digitisation’ of the aerospace and MRO then direct its work industry. This is an area that the Government must remotely. focus on as it presents a massive opportunity. Digi- • FLARE: This talisation will bring together many solutions, creat- is a pair of ‘snake’ robots ing additional value for airlines, lessors and MRO which are flexible enough to companies, by allowing real-time decision-making, travel through an engine, like an or by optimising flight and maintenance operations endoscope, before collaborating to through analytics. carrying out patch repairs to damaged ther- The size of the MRO market has also attracted the atten- mal barrier coatings. tion of the major aerospace companies now. At FIA 2018, Boeing’s services side of the business, secured commercial New MRO solutions and government customers such as Antonov, Atlas Air, Black- At FIA 2018, a new effort to accelerate the digital transforma- shape, Cargolux, Emirates, EVA Airways, GECAS, Hawaiian tion of aviation was announced by GE Aviation and Micro- Airlines, International Water Services, Malindo Air, Okay Air- soft, which is aimed at delivering more robust solutions for lines, Primera Air, Royal Netherlands Air Force, United States the industry. GE Aviation has now partnered with Teradata Air Force, WestJet and Xiamen Airlines. Boeing recently cel- to bring to market, a single, comprehensive framework that ebrated the first anniversary of the launch of Boeing Global combines high-performance analytics in the cloud (provided Services and its second-quarter revenue results reported on by Teradata) with edge-connectivity services from GE Avia- recently showed that it was a very profitable business as well. tion for the world’s biggest airlines. While second-quarter revenue for Global Services increased MTU Maintenance highlighted its MTUPlus ERcoateco to $4.1 billion, the operating margin was 14.7 per cent. and drum repair procedure at FIA 2018, both of which have been developed in-house. MTUPlus ERcoateco is a high- The future is robotic temperature-resistant erosion protection coating produced Rolls-Royce demonstrated a wide range of potential future using nano technology. This coating is used for high-pressure technologies at the Farnborough Airshow, from ‘snake’ robots compressor blades and vanes and is designed to improve spe- that work their way through the engine like an endoscope, cific fuel consumption while also reducing CO2 emissions. In to miniature, collaborative ‘swarm’ robots that crawl through addition to this benefit, the parent metal is protected from the insides of an engine. excessive damage, thereby also extending the life of blades and Rolls-Royce showcased developments that would revo- vanes. In drum repair, MTU has designed new damper wires lutionise future engine MRO with robotic technologies that with improved ends and when installed, these wires prevent could speed up inspection processes. R-R displayed these fretting damage at the middle stages of the high-pressure technologies at FIA 2018, which were at varying levels of compressor. maturity and developed through industry/academia partner- Pratt & Whitney announced at FIA 2018, that it had ships joined an industry team developing and testing additively • SWARM: These are a set of collaborative, miniature manufactured turbomachinery components. This industry robots that can be used to perform a visual inspection consortium, which includes Norsk Titanium, the Notre Dame of areas that are hard to reach by crawling through the Turbomachinery Laboratory (NDTL) and TURBOCAM engine. Each miniature robot would be around 10mm in International is also developing the first additively manufac- diameter and can be deposited in the centre of an engine tured rotating part for Pratt & Whitney development pro- via a ‘snake’ robot. grammes. “We are excited to collaborate on these manufac- • INSPECT: These pencil-sized robots form a network of turing and testing efforts and applications for future engine ‘periscopes’ and are permanently embedded within the development,” said Dave Carter, Senior Vice President, Engi- engine. They use their periscope cameras to spot and neering, at Pratt & Whitney. “Pratt & Whitney is a 3D print- report any maintenance requirements within the engine ing leader and has been steadily increasing the use of addi- itself. The visual data created will be used alongside mil- tive manufacturing techniques for the past 30 years. Working lions of data points generated by the Engine Health Moni- with Norsk, the Notre Dame Turbomachinery Laboratory toring systems on today’s engines. and TURBOCAM will accelerate already successful efforts • Remote boreblending robots: A robotic boreblending to incorporate additively manufactured parts into our pro- machine that can be remotely controlled by specialist duction engines.” The applicability of Norsk Titanium’s Rapid engineers has been developed by teams from Rolls-Royce Plasma Deposition (RPD) material to turbomachinery appli- and the University of Nottingham. Complicated mainte- cations is now being explored by the joint team and as part of nance tasks, such as repairing damaged compressor blades this effort, the Notre Dame Turbomachinery Laboratory will using lasers to grind parts, could be completed by non- test an additively manufactured, integrally bladed rotor (IBR) expert ‘local’ teams who would simply install the tool in produced to meet the applicable quality specifications used in the engine and then hand control of it over to a dedicated Pratt & Whitney's current turbomachinery products. CH

www.cruisingheights.in August 2018 55 Cruising Heights BUSINESS AVIATION BUSINESS AVIATION GA wishlist: Pit stops and more Business jet operators clearly want smaller airports to stay open longer and be better equipped in terms of refuelling facilities and parking bays. But are we ready?

PRESIDENT OF INDIA/TWITTER

hirdi. The airport is barely a year old – it Fortunately, Shirdi continues to attract started only in October 2017 – but within Saibaba's wealthy devotees in hordes — despite these few months it has topped the popu- a major problem. The airport does not have larity lists of HNW (High Net Worth) refuelling facilities. So, a private jet flying to Sindividuals and celebrities who fly in and Shirdi has to go to Hyderabad for fuel, leading out of the pilgrimage town. Records from the to an increase in operational costs. “We cannot Maharashtra Airport Development Corpora- refuel our aircraft in Shirdi and have to fly back tion (MADC) point out that the number of to the nearest airport to refuel and fly back chartered planes landing at Shirdi had increased to Shirdi for the return flight,” said Kanika since March. According to official data, of the Tekriwal, Founder of JetSetGo, an online total 126 chartered planes that flew in and out marketplace for private jets and helicopters. of Shirdi in the last seven months, 46 per cent This despite the fact that refuelling at airports were used in March and April 2018 alone. like Mumbai and Hyderabad takes more than

56 August 2018 www.cruisingheights.in BUSINESS AVIATION Cruising Heights

THIS HAPPENS ONLY IN INDIA India saw a unique situation. On one hand, the government claimed that it was Business jet ATC facility focussed on connectivity to the last mile, with industry watchers seeing business aviation as a vital tool to touch the last man. On the other, for the first operators face at many time in three financial years, corporate India and High Net Worth (HNW) some major airports only for individuals in the country cut down on the use of personal jets and chartered issues at airports scheduled flights aircraft in Q1 of the 2018. Data released by the Airports Authority of India (AAI) shows that unscheduled and chartered aircraft movements — general aviation in industry parlance — in FY18 declined 6.3 per cent over FY17 (growth in this 28 per cent 14 per cent category is measured by way of aircraft movements with one movement Airports Lack of equalling either a landing or a take-off). which have adequate Industry watchers claim that providing more parking bays and other facilities at the airports would encourage corporates to go for business aircraft as the limited hours of parking facility use of business jets would help in increasing productivity and profitability in operation business. In contrast, commercial aviation has been booming and domestic passenger 18 per cent 8 per cent numbers saw a growth of 21.95 per cent in June 2018 over the same period in Do not have 2017 (see Digest). In such a situation, business jet movements witnessed two Lack of consecutive years of positive growth: it expanded at 11.7 per cent in FY16 and airport-specific refuelling at 5.2 per cent in FY17. requirement facilities the stipulated time. “One of the strongest point thinking about flying to smaller airports. But is that India has an excellent infrastructure in there too, they face a major problem. “If we park place, however, not enough is being done to our planes in Jaipur and book a customer flying utilise it. Jaisalmer airport, for example, has a out of Delhi, we have to charge that passenger `200 crore terminal, which cannot be utilised,” for the flight from Jaipur and that adds to the Tekriwal said. cost of flying, which is not desirable,” Tekriwal A JetSetGo study of 36 airports, including said. Delhi and Mumbai, shows that the smaller ones Cuddapah, Mysore, Rajahmundry, Gaya, are constrained by various factors: they work Raipur, Bagdogra and Salem are among those shorter hours, don’t have enough parking space airports that need to be informed a day in and lack refuelling facilities. While 28 per cent advance about flight plans. Simply put, that have limited hours of operation, 14 per cent do means getting to such locations at short notice not have adequate parking and 8 per cent can- becomes impossible. not refuel planes. Business jet operators, however, have said Apart from that, 18 per cent don’t have that the government should allow them to land airport-specific requirements, such as clear- at such airports even if air traffic control is not ance for foreign nationals at defence airports, available. Airports in Shirdi and Srinagar do not proper ground-handling operators and needing allow night parking and getting a bay at airports 24-hour notice. such as Goa is also difficult. “AAI (Airports “There are various problems with smaller Authority of India) should make arrangements airports across the country,” said Tekriwal. Tir- to provide ATC services to these airports on upati, Varanasi and Vijaywada are among those required basis. Alternatively, smaller aircraft THERE ARE VARIOUS that are not able to extend operational hours. At should be allowed to operate out of these air- PROBLEMS some airports, the ATC facility is only available ports as per the same procedures used for oper- WITH SMALLER for scheduled carriers. An extension of opera- ating out of unmanned airports,” said Rohit AIRPORTS ACROSS tional hours on request would make it easier for Kapur, President, Business Aircraft Operators THE COUNTRY. business jet fliers to land and take off at a time Association (BAOA) and Managing Director, SMALLER ONES ARE of their convenience, according to operators. Arrow Aircraft Sales & Charters. “This will take CONSTRAINED BY “While airports like Jabalpur do not have care of a large part of our problem…Obviously, parking bays, the airport in Aurangabad is open all safety procedures will be followed,” added VARIOUS FACTORS: only for four hours due to lack of air traffic con- Kapur. THEY WORK trollers to manage them. There are many such Industry watchers, experts and stakeholders SHORTER HOURS, examples. The government should also look at — all are clear today that India’s aspirations and DON’T HAVE building capacity and infrastructure at smaller potential for sitting on the high table of global ENOUGH PARKING airports to ensure that there is enough space to economies necessitate a robust civil and busi- SPACE AND LACK park,” said Tekriwal. ness aviation sector and for this purpose, busi- REFUELLING Infrastructure – rather the lack of it – has ness jet operators clearly see smaller airports not deterred general aviation operators from as instrumental. The proposal was discussed FACILITIES.

www.cruisingheights.in August 2018 57 Cruising Heights BUSINESS AVIATION

being handled at Hyderabad Airport and as such does not pose any challenge to the airport.” Similarly, Bangalore International Airport Limited (BIAL) informed that “BIAL has handled approximately 90-100 movements of business jets each month, during the last few years. Over the last six months, the number has increased to an average of 120 movements per month”. The operation of business jets was primarily based on the need of travelling public and in most cases, according to the BIAL spokesperson, “the people who use business jets have connections to/ from other domestic and international flights, vari- ous assignments in business districts of the city, medical requirements, etc. Hence we believe that the BLR Airport would be in the best posi- tion to manage business jet operations”. Speaking on the issue, RGIA further explained that “Hyderabad airport has been han- dling capacity which is more than sufficient to meet the requirements of business jet traffic at the moment. Moreover, the capacity expansion has already started as per the approved Master in a meeting convened by aviation secretary RN Plan to cater to the future demand for the air- Choubey last month and BAOA was asked to port. Bigger airports such as Hyderabad offer prepare a list of alternative airports. While many significant benefits in terms of scale and range see the move to be in line with global trends — of service offerings which are often hard to rep- big airports like Heathrow in London and JFK in licate at smaller airports. Airport authorities as New York do not allow business jets to land and well as service providers will have to invest to park – experts echoed the point that the govern- replicate a lot of infrastructure which is already ment should look at increasing capacity at small- available at the larger airport which would add to er airports by ensuring that there are enough the cost of operations as well.” parking bays at these airports. Operations of private jets at the Kempegow- “We have been asked to identify alternate da International Airport, Bengaluru is viewed by airports for general aviation flights in the coun- BIAL as a vital element of Bengaluru’s aviation try,” R K Bali, Managing Director, BAOA, told eco-system contributing to the economic devel- mediapersons some time ago. “Not all cities have opment of the city and the state. BIAL added, alternate airports available but some of them “The growth of private jets is in sync with the have alternate airports, which we are going to growth experienced in the Indian aviation indus- suggest should be made available within 25 to 30 try and the economic potential of Bengaluru city. km, immediately and/or in the medium or long BIAL has accounted for this growth in its future term,” he said. plans and has already initiated the development While alternative airports for Mumbai and of capacity-enhancing solutions (primarily air- Delhi may not be immediately available, people side infrastructure and technology adoption) to flying business jets to Bengaluru and Hyder- cater to the requirements of high growth.” OPERATIONS OF abad could soon be landing at the older airports “BIAL has a well-orchestrated capacity PRIVATE JETS in those cities. The aviation ministry is toying development plan which includes development AT BENGALURU with the idea of opening the Begumpet airport of the second terminal and runway, along with AND HYDERABAD in Hyderabad and the HAL airport in Bengalu- airside infrastructure which is currently being AIRPORTS ARE ru for business jet operations. If the move goes implemented and will cater to the needs of the through, it would be beneficial for business trav- business jet operator community,” it explained VIEWED BY ellers as they are located within the heart of the further. THEM AS A VITAL city. Airport operators, however, have a differ- Reports state that the government feels that ELEMENT OF ent story. Speaking to Cruising Heights, Rajiv many of the problems faced by general avia- THEIR AVIATION Gandhi International Airport spokesperson said, tion operators would be addressed when the ECO-SYSTEM, “At present, over a hundred general aviation GPS-aided GEO Augmented Navigation CONTRIBUTING movements take place every month, and there (GAGAN) comes into force from January next TO THE has been a steady growth in the movements year year. It will help provide navigation systems to on year. There are no challenges being faced in assist aircraft in accurate landing over Indian ECONOMIC handling business jets at Hyderabad Airport. As airspace, even at unmanned airports. CH DEVELOPMENT OF a matter of fact, business jet traffic constitutes THE CITIES. less than 1 per cent of the total aircraft traffic — Nidhi Sharma

58 August 2018 www.cruisingheights.in FOCUS FEATURE Cruising Heights

nQ&A “We are looking to produce the Falcon 2000 business jet from the facility” After the successes of the Falcon 7X and 8X, there seems to be no looking back for Dassault Aviation. The new Falcon jet programme holds a lot of promises for the company, says Vadim Feldzer, Head of Global Communications, Dassault Falcon. l Is the business aviation market showing expecting more. signs of recovery? Better infrastructure has become a need for Overall the market has been improving but growth of business aviation. Overall things are remains fragile. However, we have witnessed a positive and we have good news from SE Asia, gradual improvement in the market for business even sold a few aircraft in Malaysia over the last jets. The most tangible sign to us, that things few years… we have also started selling aircraft in have been improving is in the pre-owned mar- Indonesia and have had successes in Thailand as ket. Last year in July, we had an inventory of 30 well. The Chinese market is also recovering and aircraft, today we are literally left with no more has become much more matured than it was. pre-owned aircraft on sale. This, indeed, has been a very encouraging sign for us, as it shows l How is the new Falcon 6X programme pro- that the market is recovering. It is almost impos- gressing? sible to find a recent model Falcon aircrafts, such The Falcon 6X has been progressing very well as the 7X or a recent 2000 EX or 900 LX airplane and we made the tough decision to stop the 5X in the pre-owned market. It has become difficult programme, as announced by our CEO, Eric to find a pre-owned aircraft and prices have been Trappier. We are very positive and confident on the higher side, so we have started meeting about this programme and are working closely customers who are not finding pre-owned air- with our engine partner Pratt & Whitney and are craft and are in discussion with them on happy with the progress of the engine, which buying a new jet. is now on the bench. We have no doubt I saw a positive sign in the that we will remain on schedule with American business jet market the Falcon 6X. The detailed design since last year, which has phase has been underway and first been much more active flight has been scheduled for 2021. this year. Along with this, The entry into service with a fully Falcon 2000 and 900 LX mature airplane has been planned has been succeeding in for 2022. The Falcon 6X will dis- the last couple of months. play excellent performance and Northern Europe mar- range and have a very comfort- kets such as Scandinavia, able cabin. Netherlands, Belgium and Germany, which has one of the strongest business jet markets in THE FALCON 7X Europe has also done well. In India, HAD BEEN SO Dassault has been enjoying the high- SUCCESSFUL IN est market share at the top of the ASIA, THAT WE business jet segment. Though the market has been quiet HAVE NO DOUBT in the last couple of THAT THE 8X WILL years, we have FOLLOW IN ITS sold some PATH. ALREADY WE pre-owned HAVE MET SOME Falcon SUCCESS AND HAVE 2000s and DELIVERED THE 8X are pleased with that, EVERYWHERE IN but are THE WORLD.”

www.cruisingheights.in August 2018 59 Cruising Heights FOCUS FEATURE

Dassault Falcon 7X

Upon its arrival in the market, it will be the most ation to our customers. This CVS was introduced advanced aircraft. on the 8X and will also be available on the 2000 and 9000 series. Almost all 8X customers have l What is the status of development of the opted for Falcon Eye. Falcon Eye CVS substan- next Falcon jet? tially enhances situational awareness and flight Our CEO Eric Trappier announced last year the comfort for the passengers. Making a major dif- launch of a new programme development and ference, this system also adds to the operational this decision was made. We have a lot of people capability of aircraft fitted with this feature. The involved on this product as we speak. We are not feedback from pilots who have operated Falcon ready to make any announcements as of now and Eye has also been excellent. Falcon Eye has a mil- would prefer that matters remain confidential itary heritage as it takes into account an experi- till we are ready to enter the market. So, a firm ence from military fighter jets. announcement will take a few more months. This will be an ambitious programme and help l How has the Falcon Sphere II solution been us stay at the top of the market. received? Falcon Sphere is a new service that Dassault Avi- l Please elaborate on the market response for ation is investing very heavily in the last couple the Falcon 7X/8X? of years. We have always been a customer ori- The Falcon 7X had been so successful in Asia, ented company and now when you can look at that we have no doubt that the 8X will follow in the number of product options and services that its path. Already we have met some success and we are offering our customers on our airplanes, have delivered the 8X everywhere in the world. we are taking into account all the requirements The Falcon 8X had been and would be successful of our customers. Falcon Sphere is the perfect because of its long-range and real appetite for a response to meet the requirements of our cus- three engine business jet because of its efficiency tomers and has been packaged to offer a perfect CEO and flexibility. Also, Falcon 8X can land at chal- solution. It is tailor made to meet our customer ERIC TRAPPIER lenging airports such as London City airport. requirements. We have also added new options such as Falcon ANNOUNCED l LAST YEAR THE Eye Combined Vision System which is unique to What is the progress of the Dassault Reli- Dassault. Along with this, we are offering new ance Aerospace Limited manufacturing facil- LAUNCH OF A connectivity solution called Falcon Connect, ity in Mihan, Nagpur? NEW PROGRAMME offering high speed connectivity from Honey- We will start with this facility in Nagpur by the DEVELOPMENT. well: making it much more affordable and cost- end of the year. In the future, significant sub- THIS WILL BE efficient solution. assemblies and structural parts for Falcon jets AN AMBITIOUS will be produced here. Ultimately, we are look- PROGRAMME AND l What has been the response for Falcon Eye ing to produce and manufacture the Falcon 2000 HELP US STAY AT Combined Vision System? business jet from this facility. We are also making The response to Falcon Eye Combined Vision major investments into this facility part of our THE TOP OF THE System (CVS) has been really good. This is a approach to source supplies from cost competi- MARKET.” unique and advanced offering from Dassault Avi- tive locations for our aircraft. CH

60 August 2018 www.cruisingheights.in AIR CARGO Cruising Heights AIRCARGO n Will slower growth be... n Thar she flies n Boeing freighters for Qatar...

Nashik is ready and willing Barely 165 km away from Mumbai, Nashik Airport is keen to leverage its cargo facilities to woo freighters and it has been successful so far, writes TIRTHANKAR GHOSH. In course of time, the airport aims to take away 25 per cent of Mumbai Airport’s cargo business.

www.cruisingheights.in August 2018 61 Cruising Heights AIR CARGO

ashik airport, primarily meant for cargo, has started seeing growth over the past year. Hitting the headlines for its export of goats and sheep to the UAE, the airport is Ngetting ready to double its growth in 2018. The export of goats and sheep to Sharjah started in 2016. Till the time of filing this story, 12,356 goats and sheep had been dispatched – the ani- mals are usually sent during the monsoon season (June to August) – from Nashik in eight flights. A logistics veteran, Sudhakar Sen, CEO, MAKING A NAME: (Above and right) Livestock exports from HALCON (a joint venture between Hindustan Nashik Airport; and, pallets with goats and sheep for Sharjah Aeronautics Ltd and Container Corporation of being loaded on an IL-76 cargo aircraft India, that manages the airport) said, “Yes, the number of flights are rising and the stats depict (HAL – the government-owned military aircraft the confidence of the trade.” In 2016-17, the air- manufacturing company), for development, test- port handled nine freighters a month while in ing and maintenance of Indian Air Force aircraft, 2017-18, the number went up to 38. This year the airport has a large cargo facility as well as a between April 1, 2018 and July 18, 2018, Nashik passenger terminal. saw 22 freighters and also handled 129 scheduled When passenger services started at the end of passenger flights. last year, belly cargo started. Today, for example, While the airport has handled a wide variety the Jet Airways flight which started from June 15 of cargo – including an AN-124 – it is ready to on the Delhi-Nashik-Delhi sector has been car- send out pharma products to Kabul in Afghani- rying export cargo for London and Dubai. “With stan. Airport sources indicated that there would this the trade and industry of Nashik is getting be two such cargo flights a month. Around 100 direct access to the international market,” said tonnes of pharma products will be sent out on Sen. Along with Jet, other carriers – IndiGo each flight. As Sen pointed out, “HALCON has and SpiceJet – have started operations. “The been handling export pharma cargo at the air Regional Connectivity Scheme will act as a cata- cargo complex for last five years. These pharma lyst for economic growth of the Nashik region. consignments are trans- As we say, the economy of ported to the gateway air- a nation flows in the wings port (Mumbai) through and wheels of the transpor- bonded trucking.” He FREIGHT FORWARDERS tation,” said Sen. emphasised that HAL- POINTED OUT THAT NASHIK HAL decided in 2005-6 CON was “actively working to start commercial opera- to facilitate the direct air WOULD BE IDEAL FOR PHARMA tions from the airport and uplift of the pharma cargo EXPORTS SINCE THERE ARE offered the government- from Nashik Airport”. QUITE A FEW PHARMA UNITS run Container Corporation Freight forwarders of India Ltd. (CONCOR) pointed out that Nashik IN THE CITY AS WELL AS – its core business being would be ideal for pharma NEIGHBOURING AURANGABAD that of a carrier, a terminal exports since there are operator, and a warehouse quite a few pharma units operator – 11 acres of land in the city as well as neigh- for cargo operations. As HALCON HAS BEEN bouring Aurangabad, around 185 km away by Sudhakar Sen put it: “HALCON is a success- HANDLING EXPORT road. These pharma units could avoid an already ful marriage between HAL and CONCOR two PHARMA CARGO congested Mumbai airport — around 165 km by of India’s well known PSUs. CONCOR fulfils AT THE AIR CARGO road — and send their goods out from Nashik its role providing cargo handling and Customs COMPLEX FOR Airport. In fact, the airport wants to get 20-25 operations and HAL provides air traffic control LAST FIVE YEARS. per cent of the 40,000 tonnes a month cargo han- and navigation services.” dled by Mumbai airport. The airport’s cargo division has seen a 44 per THESE PHARMA The airport is slowly emerging from the shad- cent rise in between April 2017 and March 2018 CONSIGNMENTS ows and becoming popular with cargo carriers exports (5,500 tonnes in comparison to 3,800 in ARE TRANSPORTED and operators. As CEO Sen pointed out, “The the previous year). Of that, 2,000 tonnes com- TO THE GATEWAY response is immense and in addition to non- prised perishables vegetables and fruits along AIRPORT (MUMBAI) scheduled freighters recently, we handled 8 B747 with goats and sheep. THROUGH BONDED freighter technical landings in June 2018.” The air cargo complex at the airport was inau- TRUCKING” It was way back in September 2011 that the gurated in March 2008. With a major investment HALCON-operated Nashik Airport (well known of `70 crore from HALCON, the cargo complex — SUDHAKAR SEN as Ozar Airport) started its commercial servic- has put in warehouses, an integrated packing CEO, HALCON es). Owned by Hindustan Aeronautics Limited centre for perishables, cold storage, facilities for

62 August 2018 www.cruisingheights.in AIR CARGO Cruising Heights

“With low cost airlines ruling the skies, low cost THE AIRPORT airports is an idea whose time has come and WOULD ALSO LIKE Nashik Airport aims to lead the way,” he said. TO LEVERAGE Even as the government regional connectiv- NASHIK’S ity initiative gets going, Nashik airport hopes to bring down logistics costs Sen said that the aim AGRICULTURAL was to reduce cost by bringing the airport facility PRODUCE. THE virtually at the customer's doorstep. “We believe AIRPORT CAN BE AN that regional airports like ours can reduce trans- EMERGING CARGO portation time and costs for the industry.” As a HUB BECAUSE OF low-cost cargo airport it complements opera- ITS PROXIMITY comprehensive ground handling services, CCTV tions at other airports by providing feeder servic- TO MAJOR CARGO surveillance, screening, bar-coding, labelling and es. Sen believes that the airport would enable the Customs clearance. large number of manufacturers in and around GENERATING Nashik Airport officials firmly believe that Nashik to connect to major markets by air. Space CENTRES. the airport will become the forwarders’ choice. has been created to enable forwarders and air- Sen pointed out that when plans to start com- lines to set up offices within the airport. mercial operations were chalked out, there were The airport would also like to leverage issues regarding connectivity and the runway. All Nashik’s agricultural produce. The airport can be that was a dozen years ago. Today, with all the an emerging cargo hub because of its proximity clearances from the Directorate General of Civil to major cargo generating centres. It serves the Aviation, the airport handled a B747-400 ERF major agricultural belt of Maharashtra and the some time ago and is now all set to handle all state’s third largest industrial belt with six agri wide-bodied aircraft. zones and a Special Economic Zone. The city is Comparing Nashik to other cargo airports also known as the wine capital of India. While (there are none in India yet), Sen said there was the wine produced – both red and white – from provision for all the special handling facilities the 29-odd wineries is for domestic consump- for heavy cargo, engineering goods, pharma and tion, a lot of it is exported to countries around perishable goods at substantially lower costs. the world. CH

www.fiata2018.org 26-29 SEPTEMBER 2018 NEW DELHI, INDIA

1200+ 150+ 50+ 24

DELEGATES COUNTRIES MINISTERIAL SESSIONS WITH DELEGATES INDUSTRY LEADERS

To register please visit www.fiata2018.org/delegate/ For any additional queries please reach us at fi[email protected]

In Association with Hosted by Official Freight Forwarder Professional Conference Social Media Partner RAME Business Management Company Session Sponsor

Gala Dinner Sponsor Delegate Kit Sponsor Lanyard sponsor Lunch Sponsor Inaugural Business Session Sponsor

Federation of Freight Forwarders’ Associations in India 311 - 313, 3rd Floor, Mahinder Chambers, Opp. Dukes Factory, W.T. Patil Marg, Chembur, Mumbai 400 071 Tel: +91-22-6710 7495 / 67107496 Fax: +91-22-67107500, Email: [email protected] Cruising Heights AIR CARGO

Will slower growth be the norm now? IATA data for air cargo in May showed that the growth trend had come down and cited three reasons for that.

he International Air Transport Associa- IATA’s mid-year industry outlook, 2018 freight tion (IATA) released data for global air growth was revised downwards to 4.0 per cent freight markets showing that demand, (from the previously forecasted 4.5 per cent in measured in freight tonne kilometers December 2017) T(FTKs), rose 4.2 per cent in May 2018, There are three indications that growth will compared to the same period the year before. continue at a slower pace: This was slightly down from the 5.2 per cent 9 The e-stockingr cycle which required (revised from 4.1 per cent) growth in annual quick delivery to meet customer needs is demand recorded in April 2018. over Freight capacity, measured in available 9 The new export orders component of the freight tonne kilometers (AFTKs), grew by 6.2 global manufacturing Purchasing Manag- per cent year-on-year in May 2018. This was ers’ Index (PMI) is at a 21- month low the fourth month in a row that capacity growth 9 Global trade appears to be softening as outstripped demand growth. trade tensions increase After a weak start to 2018, demand for “We expect air cargo demand to grow by global air freight has now resumed a modest a modest 4.0 per cent in 2018. That’s an uptick trend upwards. However, the rapid growth from a very weak start to the year. But head- seen in 2017 is now over, with demand grow- winds are strengthening with growing friction ing at a significantly slower pace in 2018. In among governments on trade. We still expect

64 August 2018 www.cruisingheights.in AIR CARGO Cruising Heights

Air Cargo-GDP growth myth busted

YOY Changes GDP growth Q1 Air Cargo Volumes Air Cargo Volumes Country/Region Outgoing YtD Incoming YtD USA 2.8% 7.2% 4.0% China 6.8% -0.8% 4.8% Japan 1.1% 17.2% 3.1% Great Britain 1.2% 1.9% 2.8% Canada 2.3% 13.3% 3.7% Euro Area 2.5% 1.9% 6.4% Hong Kong 4.7% 2.3% 2.0% India 7.7% 1.3% 8.8% Brazil 1.2% 13.7% 13.9% Russia 1.3% -5.2% 18.4% South Africa 0.8% 5.7% 7.2% Chile 4.2% 29.0% 3.8% Colombia 2.8% 5.8% 7.6% *YoY=Year on Year YtD=Year to Date demand to grow, but those expectations are away from consumption. Will the whole world dampened with each new tariff introduced. suffer? To what extent will some regions feel Experience tells us that trade wars, in the long the heat of the trade war (mongering) more run, only produce losers," said Alexandre de than others? Impossible to tell, so let us stick to Juniac, IATA's Director General and CEO. what we know and see how a number of large WorldACD pointed out that the worldwide economies performed lately. air cargo yield went down to a level of USD WorldACD also took a look at the GDP- 1.88 in May 2018, 3 per cent below April 2018, developments as reported by The Economist, but still 14 per cent higher than in May 2017. for a number of countries, relative to air cargo Measured in Euros, the yield increased by 1 growth. Until 2009, the conventional wisdom per cent month-over-month (MoM), whilst the was that air cargo roughly grew at twice the year-over-year (YoY) increase was 7 per cent. rate of GDP-growth. Since the crisis this ratio The development in air cargo in May 2018 first dropped from 2:1 to 1:1 and then climbed confirms a downward growth trend noticed again. since the start of this year. But growth it is The table shows that it is no longer possible nonetheless, although less than in 2017. Year- to use a general ratio between GDP-growth over-year, air cargo volume increased by 2.6 and air cargo growth. Neither is it possible to per cent worldwide, yield measured in EUR by assume that growth in any geographical area 7.1 per cent and measured in USD by 14.4 per will 'automatically' benefit the carriers based in cent. For January through May, the growth was that area. Actually, the contrary appeared to be 4.3 per cent. the case when reviewing growth over the past The origins Chile (+58 per cent), Japan (+18 two years! WE EXPECT AIR per cent), Canada (+17 per cent), and the USA The African carrier group, WorldACD CARGO DEMAND (+5.8 per cent) easily outperformed many oth- mentioned, was the only one improving its TO GROW BY er countries. But the growth from the Ameri- market share in all regions. So did carriers A MODEST 4.0 cas came at a price: YoY USD-yield improve- from Asia Pacific, except in their home area. PER CENT IN ments in the Americas were well below 10 per Carriers from the Americas increased their 2018…BUT cent, much lower than elsewhere in the world. market share in three regions, but lost share The origins India, Russia and Western Europe in both North and South America. The group HEADWINDS ARE all showed negative YoY growth in May. As in of Middle Eastern carriers lost share in three STRENGTHENING previous months, long haul traffic increased regions, including their home area, and gained WITH GROWING more than short haul (3.0 per cent growth in in Europe and Latin America. Lastly, the group FRICTION AMONG Direct Ton Kilometers, DTKs, vs. 2.6 per cent of European carriers gained share everywhere, GOVERNMENTS ON in weight), whilst specific cargo categories except in their home market, Europe. In oth- TRADE." again outpaced general cargo (5.5 per cent vs er words, the growth in traffic from all areas — ALEXANDRE DE JUNIAC 1.5 per cent growth). except Africa, benefited the group of 'non- Yet, the fear of growing protectionism is home carriers' more than the group of 'home Director General and real, and that fear may well play a role in a shift carriers', said WorldACD. CH CEO, IATA

www.cruisingheights.in August 2018 65 Cruising Heights AIR CARGO THAR SHE FLIES! The five Beluga XL aircraft that Airbus is building will provide an additional 30 per cent transport capacity for the European airframer: needed to secure the seamless flow of components and sections for the new variants of the A350, the A320neo family and the A330-300s.

he name says it all. That is the favour, the smiley livery won. nents and equipment. The first of five Airbus’ BelugaXL that rolled The decision to build the BelugaXL BelugaXLs will fly in summer 2018 and Tout of the paintshop unveiling was taken in November 2014 to ad- enter into service in 2019. a special livery making it look like a dress the transport and ramp-up ca- The next-generation oversize cargo EUROPE LATAM Beluga Whale. The livery was one of six pacity requirements for Airbus beyond airlifter with Beluga whale-inspired MIDDLE EAST choices submitted to Airbus employees 2019. The new oversize air transporters eyes and an enthusiastic grin, has a UNITED STATES through a poll where 20,000 people are based on the A330-200 Freighter, bulging upper forward fuselage and www.aertecsolutions.com participated. With 40 per cent votes in with a large re-use of existing compo- enormous cargo area. To be operated EUROPE Airbus BELUGA LATAM MIDDLE EAST Around 60 flights Transporting components for the Airbus fleet UNITED STATES are made www.aertecsolutions.com each week across 11 different locations The Airbus Beluga's main task is to transport aircraft sections and components throughout production locations and assembly lines at Toulouse (France),

Hamburg (Germany) and Seville (Spain).Around 60 flights Transporting components for the Airbus fleet are made each week across The five units which are 1 11 different It first entered into service currently in service play 352 cm locations A350 XWB in January 1996. a key role in maintaining 2 A320

The Airbus Beluga's main task is to transport aircraft sections and components production and assembly 630 cm 630 The cockpit is located lines at maximum capacity. 3 511 cm

throughout production locations and assembly lines at Toulousebelow the(France), main cargo hold's 315 cm 315 Hamburg (Germany) and Seville (Spain). flooring. It has capacity for The Beluga's cargo 435 cm compartment measures 4 Central section 183 M€ two crew members and is Central section FUSELAGE BELUGA equipped with additional 7.4 m in diameter and The Airbus Beluga costs approximately €183 million, though it does 1 EUROPE FUSELAGE Wide 395 cm seats for auxiliary personnel. 37.7 m in length. 5 Wide 596 cm not appear in the company's sales catalogue. 352 cm LATAM cm 550 A350 XWB Height 609 cm MIDDLE EAST The main cargo hold is It can transportA320 up to 2 3 UNITED STATES located at a height of 47 tonnes or 1500 m 630 cm 630 Ground level 511 cm 3 www.aertecsolutions.com5.5 m above the ground. to a distance of 1 665 km BELUGA XL An integrated loading (900 nautical miles). Its range BELUGA 315 cm 315 A330-200 435 cm ramp measuring 12 m in can be increased to up to A300-600ST A CURIOUS FACT 4 Central section 183 M€ 3 length and 5 m in width Central section 4 600 km (2 500 nautical BELUGA XL 3 + 1 165 m Its development forms part of the Airbus 2 615 m * powered by the aircraft's miles)BELUGA withFUSELAGE lower payloads. The Airbus Beluga costs approximately1 450 €183 m3 million, though it does programme, which is aimed at optimising FUSELAGE Wide 395 cm A330-200 5 internal generator has Wide 596 cm Volume capacitynot appear in the company's sales catalogue. + 6 tn 550 cm 550 A300-600ST 53 tn the company's logistics infrastructure by increasing been developed to improve Height 609 cm The Beluga's cockpit is 3* + 1 165 m3 47 tn 3 the work done by its transport fleet to access to the cargo hold. pressurized during 2 flight 615 but m Maximum payload + 6.9 m 1 450 m 63.1 m Ground level not the cargo hold, which + 6 tn 56.2 m year by 2017. The name "Beluga" comes cannot beBELUGA accessed XLafter 53 tn Volume capacity BELUGA 47 tn Length + 15.5 m (900 nautical miles). Its range from the fact that it looks like take-off. It is equipped with 60.3 m A330-200 + 6.9 m 44.8 m an Artic whale that carries A300-600ST a heater in the cargo hold 63.1 m A CURIOUS FACT Maximum payload 3 Wingspam + 1.7 m the same name. to56.2 keep the m parts it carries3 + 1 165 m Its development forms part of the Airbus Fly 10,00018.9 m 2 615 m * + 15.5 m miles) with lower payloads. 3 17.2 m It will be 6,9 metres longer Length 1 450 m within the right temperature 60.3 m programme, which is aimed at optimising 2 44.8 m Height 2 + 102.8 m that the current aircraft and Volume capacity range. + 6 tn 2 361.6 m 53 tn +the 1.7 company's m logistics infrastructure258.8 m by increasing 1 metre wider. It will be able 47 tn 18.9 m Wingspam Wing area the work done by its transport fleet to 10,000 hours/ + 72 000 kg to carry 6 additional tonnes pressurized during flight but Maximum payload Live17.2 animals m cannot be + 6.9 m 2 227 000 kg 63.1 m + 102.8 m2 155 000 kg of cargo (to reach up to 53 not the cargo hold, which 56.2 m transported in 2it under year by 2017. cannot be accessed after Height 361.6 m Max. take-off weight + 47 000 kg tonnes). Length 258.8normal conditions. m + 15.5 m 187 000 kg EUROPE take-off. It is equipped with 60.3 m + 72 000 kg 140 000 kg 44.8 m LATAM a heater in the cargo hold Wing area Max. landing weight + 44 500 kg It will be able to transport Wingspam 155 000 kg 227 000+ kg 1.7 m 178 000 kg MIDDLE EAST to keep the parts it carries 18.9 m + 47 000 kg 133 500 kg two complete wings of 17.2 m It will be 6,9 metres longer UNITED STATES the new A350 (the current within the right temperature Max. take-off weight 2 Max. weight without fuel + 7.1 m

Height 140 000 kg 1872 000+ kg 102.8 m 8.8 m XL BELUGA 361.6 m + 44that 500 the current kg aircraft and version can only carry one 2 7.1 m www.aertecsolutions.com 258.8 m 1 metre wider. It will be able wing). Max. landing weight giant a of evolution The Fuselage diameter – Wing area 133 500 kg 178 000+ kg 72 000 kg to carry 6 additional tonnes Rolls Royce Trent 700** Live animals cannot be 227 000 kg + 7.1 m GE Cf6-80C2A8** 155 000 kg 8.8 m of cargo (to reach up to 53 The first aircraft's assembly 183 M€ Max. weight without fuel Power plant + 2 409 km Max. take-off weight 7.1 m + 47 000 kg ** tonnes).– 4 074 km will begin in December 2017 187 000 kg 1 665 km The Airbus Beluga costs approximately €183 million, though it does 140 000 kg ** and it will enter into service Fuselage diameter Rolls Royce Trent 700Maximum payload range – Airbus BELUGAnot appear in the company's sales catalogue. Max. landing weight GE Cf6-80C2A8 + 44 500 kg It will be able to transport S/D in 2019. It will coexist with 178 000 kg + 2 409 km 492 nudos 133 500 kg two complete wings of the Beluga SL until 2025. Power plant Cruising speedAround 60 flights – Max. weight without fuel 1 665 km 4 074 km+ 7.1 m the –new A350 (the current S/D

8.8 m XL BELUGA are made Transporting components for the Airbus7.1 fleetm The BELUGA S/D version can only carry one Maximum payload range Necessaryeachwing). take-off week runway across length 1 386 m –

The evolution of a giant a of evolution The 492 nudos is based S/D Fuselage diameter – 11– different Rolls Royce Trent 700**on the Airbus GE Cf6-80C2A8** S/D locations Cruising speed A300-600R NecessaryThe landing first runwayaircraft's length assembly 1 350 m Power plant 1 386 m + 2 409 km – 4 074 km will begin in December 2017 The BELUGA XL Download & Share it! The Airbus Beluga'sIts development main forms parttask of theis Airbusto transport Fly 10,000 aircraft sections1 665 kmand components S/D Necessary take-off runway length * Estimated volumeand /it ** will 2x Turbofanenter into service is based on www.aertecsolutions.com/infographics programme, which is aimed at optimisingMaximum payload range 1 350 m – throughout production locations and assembly lines at Toulouse (France),S/D in 2019. It will coexist with the Airbus 492 nudos A330-200 the company's logistics infrastructureNecessary by increasing landing runway length the Beluga SL until 2025. Cruising speed – Hamburg (Germany)the work done and by its transportSeville fleet (Spain). to 10,000 hours/ S/D The BELUGA year by 2017. – is based Necessary take-off runway length 1 386 m S/D Source: Airbus. The contents of this document are intellectual property of AERTEC Solutions. Any copy or diffusion is allowed as long as the entire document is used, with the AERTEC Solutions logo being included at all times. on theThe Airbus five units which are 1 A300-600Rcurrently in service play 352 cm Necessary landing runway length 1 350 m A350 XWB a key role in maintaining 2 A320 Download & Share it! production and assembly * Estimated volume / ** 2x Turbofan www.aertecsolutions.com/infographics It will be 6,9 metres longer cm 630 lines at maximum capacity. 511 cm that the current aircraft and 3

1 metre wider. It will be able cm 315 The Beluga's cargo 435 cm to carry 6 additional tonnes compartment measures 4 Central section 183 M€ of cargo (to reach up to 53 Central section Source: Airbus. The contents of this document are intellectual property of AERTEC Solutions. Any copy or7.4 diffusion m in isdiameter allowed as longand as the entire document is used, with the AERTEC Solutions logo being included at all times. FUSELAGE tonnes). FUSELAGE The Airbus Beluga costs approximately €183 million, though it does 37.7 m in length. Wide 395 cm 5 Wide 596 cm not appear in the company's sales catalogue. 550 cm 550 Height 609 cm It will be able to transport It can transport up to two complete wings of 3 47 tonnes or 1500 m the new A350 (the current Ground level to a distance of 1 665 km version can only carry one BELUGA XL (900 nautical miles). Its range BELUGA wing). A330-200 can be increased to up to A300-600ST A CURIOUS FACT 3 4 600 km (2 500 nautical 3 + 1 165 m Its development forms part of the Airbus Fly 10,000 The first aircraft's assembly 2 615 m * 66 August 2018 3 www.cruisingheights.in will begin in Decembermiles) 2017 with lower payloads.The BELUGA XL 1 450 m programme, which is aimed at optimising is based on Volume capacity + 6 tn and it will enter into service 53 tn the company's logistics infrastructure by increasing in 2019. It will coexist Thewith Beluga's cockpit is the Airbus 47 tn A330-200 the work done by its transport fleet to 10,000 hours/ the Beluga SL until 2025.pressurized during flight but Maximum payload + 6.9 m 63.1 m not the cargo hold, which 56.2 m year by 2017.

cannot be accessed after The evolution of a giant a of evolution The AIR CARGO Cruising Heights by the Airbus Transport International tions required prior to the aircraft’s (ATI) subsidiary, the fleet of five Be- maiden flight. This included the heavy lugaXLs will take over transporting ground test phase, which focused on complete sections of Airbus aircraft introducing loads into the highly modi- among the company’s production sites fied airframe, followed by an eight-day around Europe and to final assembly ground vibration campaign. lines in France, Germany and Spain. By the time this issue of CRUISING "The need for the new Beluga comes with The paint shop rollout was another HEIGHTS goes to press, the BelugaXL the increase in production rates and to get major milestone as the first will have taken its maiden flight extra capacity...The perception you have BelugaXL concluded a that will kick off a 10-month (when the cargo door opens) is comprehensive ground flight test certification of a huge volume like a cathedral." testing phase – in- campaign leading to cluding a total of 72 planned service entry Stephane Gosselin specific evalua- in 2019. Head, Airbus Transport International

With a diameter of 7.1 meters, the Beluga can carry the wings of an A340 airliner or a fuselage section for Airbus' widebody aircraft, the A350.

www.cruisingheights.in August 2018 67 Cruising Heights AIR CARGO

Ericsson’s Magnusson to join TIACA Boeing freighters for Qatar Airways, DHL Supply process development spe- cialist Lars Mag- nusson will join The International Air Cargo Asso- ciation (TIACA) Shippers Advisory Lars Magnusson Committee as the new Ericsson Industry and Society representative. The committee is made up of rep- resentatives from different industries to encourage all sectors of the air cargo supply chain to engage in dis- cussion and embrace new processes, CAPACITY ENHANCEMENT: (L-R) Kevin McAllister, CEO, Boeing Commercial Airplanes; Ihssane Mounir, VP technology, and greater transparency. Sales & Marketing, The Boeing Company; Dan Abraham, VP Sales Europe, Boeing Commercial Airplanes: Ken Allen, CEO DHL Express; Charlie Dobbie, COO DHL Express; and, Mike Parra, CEO DHL Express Ameri- Magnusson is responsible for cas after the signing of the freighter order. Business Architecture, Delivery at Ericsson AB in Stockholm, Sweden Boeing and Qatar Airways finalised an set to grow its Boeing Freighter fleet to and has more than 25 years’ inter- order for five 777 Freighters at the 2018 more than 20 jets. national experience in supply chain Farnborough International Airshow. “We are proud that Qatar Air- management, specialising in digitisa- The deal, valued at $1.7 billion at cur- ways recognizes the value of the 777 tion. rent list prices, was announced as a Freighter and continues to invest in “Digitisation is sweeping across commitment in April. this aircraft to serve its expanding the supply chain, as all sectors seek The announcement was attended freight operations,” said Boeing Com- to update their systems and imple- by the State of Qatar's Minister of mercial Airplanes President & CEO ment digital processes, so we are Finance and Qatar Airways Chairman, Kevin McAllister. “We continue to see pleased to welcome Lars and his Ali Shareef Al Emadi. a resurgence in the air cargo market expertise,” said Sebastiaan Scholte, "I am delighted to be further and we are confident that Boeing's Chairman TIACA. “Technological enhancing our cargo fleet and adding industry-leading freighter family is developments are an important con- five Boeing 777 Freighter aircraft," said well positioned to meet our customers' sideration for TIACA as the logistics Qatar Airways Group Chief Execu- requirements.” and transport industry continues tive, Akbar Al Baker. "In the past 15 Boeing and DHL announced that to evolve, and the impact on the air years, Qatar Airways Cargo has grown the leading international express car- freight supply chain will be a main steadily and globally, becoming the rier had placed an order and commit- topic at the Air Cargo Forum in third largest in the world. We could not ment for 14 Boeing 777 Freighters, and Toronto in October.” have achieved this success without our purchase rights for seven additional Magnusson is currently part of resilient relationship with Boeing.” freighters. the American Production and Inven- Qatar Airways, one of the world's The $4.7 billion order agreement, tory Control Society (APICS) Digiti- top cargo carriers, operates a fleet of 13 at current list prices, was unveiled at sation Task Force and was the former 777 Freighters and two 747-8 Freight- the opening of the 2018 Farnborough President of the APICS Supply Chain ers. With this latest order, the airline is International Airshow. A portion of the Council (SCC) Board. India-Australia exim trade on a high The India market is now more acces- For air cargo, the flights will open and Steven Ciobo, Minister for Trade, sible to Australian carriers, courtesy a doors that have remained closed till Tourism and Investment. In addi- new liberalised air services agreement. now. “These air services arrangements tion, the move will provide Australian The new Australia-India air services provide a foundation for airlines to businesses the opportunity to access a agreement will provide Australian increase direct flights between Austra- rapidly growing market. airlines to operate unlimited ser- lia and India, in line with the growing India is Australia’s fifth-largest vices between Australia and six major scale and profile of the Indian market trading partner and Trade between metropolitan airports in India and for over the long term,” said the joint media the two nations is worth $27.4 billion Indian airlines to operate unlimited release sent out by Michael McCor- (Australian Dollars). With more flights, services between India and six airports mack, Deputy Prime Minister and Min- the opportunity for increased air cargo in Australia. ister for Infrastructure and Transport would push up volumes. While the larg-

68 August 2018 www.cruisingheights.in AIR CARGO Cruising Heights

FFFAI urges for more clarity on services sector order was previously unidentified on Boeing's Orders & Deliveries website. As the country inches towards a firm service is viewed differently by offi- When the full order is finalized, it will and transparent indirect tax mecha- cials at different locations, resulting also appear on the website. nism with the introduction of GST a in unnecessary review applications,” “We are delighted to announce the year ago, it is necessary to contem- said S Ramakrishna, Vice Chairman, acquisition of 14 new 777 Freight- plate the effects and issues FFFAI. ers as we renew part of our long- still remaining in the system, He also pointed out that haul fleet with this best-in-class fuel for the larger interest of the the concept of GSTR-I, 2 and efficient freighter type that will make industry as well as the com- 3 should have been continued a significant step towards DHL’s zero mon people, as envisaged by so that auto reconciliation emissions target by 2050,” said Charlie the government. The Federa- through the system could Dobbie, Executive President of Global tion of Freight Forwarders’ have happened. Ramakrishna Network Operations & Aviation. Associations in India (FFFAI) urged for doing away with DHL was the first express opera- commended the government human intervention, which tor in 2009 to introduce the 777 to for its firmness to imple- S Ramakrishna was, in fact, the intention and perform long-haul time critical ment the much-delayed tax vision of the present govern- services. The aircraft type has proven reform i.e. GST in July 1, 2017. It has ment. “Issues pertaining to taxes to be the most reliable large freighter positively impacted the manufactur- on goods are more or less resolved connecting the major markets across ing, exim trade and logistics industry. and are being settled in the regular the globe, bolstering service quality The introduction of Eway Bill has GST Council meetings. Our sincere for DHL's express customers. The new further enhanced request to the order will double the size of DHL's the transport Council is to global 777 fleet, allowing more mar- sector’s efficiency FFFAI DOES FIND THAT SOME OF redefine the kets and customers to benefit from and the removal of ERSTWHILE CHECK ‘NAKAS’ ARE export services the uniquely capable aircraft. check posts have NOT VERY HAPPY WITH THE so that there Global air freight demand grew definitely improved is no scope by nearly ten percent last year with transit times and MEASURE AND TRY TO CREATE of ambiguity demand growth outpacing capacity consequently HURDLES WITH RANDOM and hassles to growth by a factor of three. Expand- rationalised costs. STOPPAGES OF TRUCKS, service provid- ing cross-border e-commerce sales for However, FFFAI ers,” the FFFAI instance will grow to $4.48 trillion by does find that some SPECIALLY OF CONSOLIDATED Vice Chairman 2021, which means a growth of 19.2 of erstwhile check MOVEMENTS. appealed. per cent per year. DHL's investment in ‘nakas’ are not very It is also the 777 Freighters is a direct answer happy with the pertinent to to the growing demand for global measure and try to create hurdles mention that the technology support express capacity. with random stoppages of trucks, from GSTN, which is the backbone The 777 Freighter is capable of specially of consolidated movements. to successfully implement and carry flying 4,900 nautical miles (9,070 kilo- There were some areas of con- out the tax revolution in India, has to meters) with a payload of 112 tonnes cern that required to be addressed. be well-structured and streamlined. (102 metric tonnes or 102,000 kg). “After completion of one year of “As the Finance Secretary of India The airplane's long range translates GST we can say that it has matured Hasmukh Adhia assured in his recent into significant savings as fewer stops to a great extent in terms of filing of statement, we are looking forward mean lower landing fees, less conges- Returns. However, for the services to the next GST Council meeting for tion, lower cargo handling costs and sector, export services have not been some pragmatic decision on the ser- shorter delivery times. defined adequately. For example, vice sector, GSTN and other issues,” refund application for similar export Ramakrishna added. Cruising Heights AIR CARGO

DHL Express is No 5 DHL Express has been ranked fifth amongst India's Best Companies to Work For 2018 by the Great Place to Work Institute. The company has jumped up in its ranking this year from 10th place in 2017. Commenting on being listed in the top Team FIATA publicizes FWC-2018 at Busan 10 workplaces in India, R S Subramanian, Country Manager at DHL Express India Pvt. FIATA leaders along with the opportunities for logistics indus- Limited said, “It is a moment of pride for FIATA World Congress 2018 try, industry-friendly policies and us to be ranked No. 5 amongst ‘India’s Best (FWC-2018) organising team tourism are concerned. Also pres- Companies to Work For’, which reinforces attended the recent FIATA RAP ent on this occasion were Babar our commitment towards our employees. (Region Asia Pacific) Conference Badat, President, FIATA; Stanley Our guiding principle of Respect and Result held at Busan in South Korea. As a Lim, past President and Chairman, drives us to do the right things, the right part of their series of promotional Congress Committee FIATA; Elena way. More so, our FOCUS strategy which campaign across the world, team Primitzhofer, Congress Coordina- lays emphasis on motivated people, has FIATA and FFFAI, which is host- tor, FIATA and other dignitaries. led us to provide best-in-class customer ing FWC-2018 from September More than 1500 delegates from experience, resulting in DHL delivering long 26-29, at Delhi, interacted with the across the world and India will be term business success.” In a rapidly changing conference delegates to highlight participating in FWC 2018 that environment, DHL Express continues to stay the significance and chief features offers huge opportunities for B2B ahead of the curve by remaining focused on of the mega show this year. interactions. Delegates comprising being an Employer of Choice for its people, In his presentation made at Customs clearing agents, freight Provider of Choice for its customers and the FIATA RAP Conference, Amit forwarders, logistics companies, Investment of Choice for its shareholders. Kamat, Honorary Secretary, FFFAI infrastructure companies, tech- and Congress Coordinator, FWC- nology service providers, airlines, FedEx is one of India’s 2018 elaborated on the theme “The shipping lines, airports, ports, Future Starts Here” and impor- terminal operators, exporters and Best Places to Work tance of the international logistics importers, representatives from FedEx Express has been recognised as one conference taking place in India different ministries, government of the top companies to work in India by for the first time. With factual agencies, academic and training Great Place to Work Institute. The study is details, he emphasised the grow- institutions, experts and research India’s largest annual assessment of work- ing Brand India story as far as its organisations, etc will attend the place excellence, and is based on confidential economy, trade and commerce, conference. employee feedback and an audit of manage- ment processes. "I’m proud to announce that FedEx Etihad Cargo launches ‘Flightvalet’ Express has once again secured a place Ahead of the seasonal surge in booking experience. among the top companies in India. Being demand for luxury vehicle ship- Commenting on the launch, recognised as one of India’s best workplaces ments to popular holiday destina- Abdulla Mohamed Shadid, is a testament to our work culture and tions, Etihad Cargo, the cargo and Etihad Airways Managing Direc- policies,” said Philip Cheng, VP, Ground logistics arm of Etihad Airways, tor Cargo and Logistics, said: Operations for FedEx Express in India. celebrated the launch of ‘FlightVa- “We are delighted to introduce “We believe that our people are our biggest let’, its newly designed product that this new tailored product to the asset, and providing them with a positive, aims to ease the process of moving marketplace. Demand from our rewarding work environment that nurtures motor vehicles across the globe. customers has grown significantly their personal and professional growth is an Etihad Cargo transports hun- in recent years, and in an effort to essential part of the culture and values of our dreds of high-value vehicles annu- improve our service offering, we company. I dedicate this award to all team ally on its passenger and freighter have introduced vehicle handling members at FedEx Express who make this aircraft, and this new product will capability at key new stations in achievement possible,” added Cheng. further simplify the customers’ 2018.”

70 August 2018 www.cruisingheights.in AIR CARGO Cruising Heights

Kinship Agency exports Dornier-228 to Seychelles

Kinship Agency, leading Custom full cooperation to be the part of this Emirates recognised Clearing agent in Kanpur, exported assignment. for pharma handling a Dornier -228 Light Utility Aircraft It may be recalled that HAL was to Seychelles. The formal handover licensed by France to manufacture Emirates SkyCargo, the freight divi- ceremony of the aircraft to the Presi- some 125 Dornier-228 Light Utility sion of Emirates, has received the dent of Seychelles, Danny Faure, had Aircraft with French technology. All 2018 Carrier Award for Reliability and been done by Prime Minister Naren- the aircraft are ready to export now Excellence (CARE) by DHL Global dra Modi at Palam Air Base in New and all export formalities are being Forwarding for the transportation of Delhi, on June 26. The fabrication of done by Kinship Agency, as per its temperature sensitive pharmaceuti- the aircraft was done by Hindustan agreement with the Government of cals. The award was received by Henrik Aeronautics Limited (HAL). India. Ambak, Emirates Senior Vice Presi- Commenting on the success- This aircraft is well-equipped for dent, Cargo Operations Worldwide at ful operation, Ravi Dayal, Manag- transportation (both defence and the 18th Global Life Sciences & Health- ing Director, Kinship Agency said, civil), rescue operation, special mis- care Conference organised by DHL at “Kinship Agency under the Late S S sion, border patrolling, etc. With the Baveno, Italy. Dayal was entrusted to carry out a trilateral agreement between India, The DHL CARE award recognises similar operation in 2013 which was France and Seychelles already in air cargo carriers who offer exceptional carried out successfully. The Gov- place, the aircraft will allow India to service, quality, ground handling and ernment of India yet again trusted control and safeguard its sea route for innovative technologies and processes on our company to carry out export overseas trade. It will also safeguard for pharmaceutical shipments. This is with equal expertise.” He also added India’s strategic interest in the key the second time in a row that Emir- that the Kanpur Commissionerate Indian Ocean country amidst China’s ates SkyCargo has won the DHL CARE and Customs department extended growing interest in the region. Award and the achievement reinforces Emirates SkyCargo’s position as one of the global leaders in the air cargo industry for the transport of pharma- ceuticals. Over the last three years, Emirates SkyCargo has invested in the develop- ment of cutting edge infrastructure and a sophisticated suite of solutions for the secure transportation of tempera- ture sensitive pharmaceuticals across its network of 160 destinations in six continents. Emirates SkyCargo oper- ates the world’s largest GDP certified multi-airport hub in Dubai with over 8,600 square metres of combined han- dling space dedicated for pharmaceuti- cal products at its two cargo terminals Emirates SkyCentral DXB and Emirates SkyCentral DWC.

With the holiday season cars around iconic racetracks such approaching, FlightValet is avail- as Abu Dhabi’s Yas Marina Circuit, able to those who wish to transport home to the Formula 1 Etihad Air- their luxury vehicles immediately. ways Abu Dhabi Grand Prix since Customers choosing the service will 2009. benefit from Etihad Cargo’s proven In addition to individual cus- track record in handling some of tomers, FlightValet will also offer the world’s most valuable cars. car dealers and manufacturers the FlightValet is offered through a opportunity to move vehicles glob- dedicated team that will oversee the ally with more ease, with particular swift, safe and secure delivery of the readiness to cater to the Italian vehicle to its final destination. supercars market at Milan Malpen- Throughout the year, it will sa airport on Etihad Airways pas- also cater to racing enthusiasts senger aircraft, as well as chartered worldwide wishing to take their and scheduled freighter aircraft.

www.cruisingheights.in August 2018 71 Cruising Heights SNIPPETS

l UNITED COMING... l 6E CONNECTS... SNIPPETS l SIA DEBUTS...

SIA debuts 787-10 in India l Singapore Airlines has announced the introduction of its Boeing 787-10 services to India. The inaugural service will depart from Delhi to Singapore from October 28, 2018. The daily scheduled flight will be served by this new aircraft while the daily scheduled evening flight will continue to operate on the Airbus A380. SIA was the world’s first airline to take delivery of Boeing’s newest Dreamliner variant in March 2018 and will also be the first to fly it to India. Connects LA: SIA has planned non-stop thrice a week flights to Los Angeles, with US west coast comes closer with AI the first of its flights set to take off this l Air India has shaved off almost an hour from the 16+hour Delhi-San Fran- November using its A350-900ULR. cisco flying time by charting a new path over North Russia while taking the Pacific route to the Golden Gate. AI’s is the only direct flight between India and US west coast, also one of the longest nonstop on earth, which currently flies More flights from nine times a week. The airline launched the Delhi-San Francisco-Delhi flight in Guwahati November 2015 when it used to fly over the Atlantic while flying to San Francis- co and return over the Atlantic to Delhi — making it a round-the-world flight. l Bhutan’s Drukair Corporation SpiceJet connects Kanpur Limited has l SpiceJet has started daily direct flights between planned to Kanpur and Delhi on July 3, 2018. With the start flight commencement of operations to Kanpur, SpiceJet between now operates on all sectors allotted to the airline Paro and under the first phase of UDAN. It has also begun Singapore operations to airports like Hubli that it bagged in via Guwahati from October 2018. the second phase of UDAN. “SpiceJet has been the Earlier Drukair had started flight most enthusiastic supporter of UDAN since the between Paro-Guwahati and Bangkok. very beginning. July also marks a landmark year of SpiceJet operating flights under Assam government provided `100 UDAN. With the addition of Kanpur, SpiceJet will operate 15 daily flights under crore for expansion of air connectivity UDAN and we see a huge potential in all these routes,” Ajay Singh, Chairman and in the state under UDAN to connect Managing Director, SpiceJet said. ASEAN countries from Guwahati. Connects Guwahati: SpiceJet has planned to start Patna-Guwahati daily flights Along with this, India’s engagement from August 31, 2018. Also, it may increase its frequency in future depending on with neighbours has increased the requirements. In a relief to passengers travelling to Guwahati who had to change manifold, with increased focus on Act flights at Kolkata for Guwahati—consuming a lot of time and doubling the fare in East policy. comparison to a direct flight—this new connectivity holds a lot of importance. Ganganagar gets flight l Supreme Airline has started twice a day flight to Ganganagar in Rajasthan from Sanganer Airport, Jaipur, effective July 10, 2018. “The government has been making all efforts to ensure smooth intra-state connectivity and has been quite successful in its initiative to connect several cities of the state with Jaipur by air. With Jodhpur, Bikaner, Udaipur, Jaisalmer and now Sri Ganganagar being connected by air with Jaipur, a few more cities of Rajasthan will be air-connected with the state capital,” Chief Minister Vasundhara Raje Scindia said after flagging off the first flight.

72 August 2018 www.cruisingheights.in SNIPPETS Cruising Heights

Jet’s second service to Dhaka 6E connects Gorakhpur l Jet Airways has started an additional flight between Delhi l 6E has announced daily non-stop and Dhaka with effect from June 25, 2018. The planned flights from Gorakhpur to New Delhi expansion - including a four-days-a-week operation has been in line with the airline's ‘Think India, Think Jet Air- from September 2018. Earlier, IndiGo ways’ policy. This new service makes Jet Airways the only had announced that they will start airline operating the most number of flights between the daily non-stop flights from Bengaluru, two countries. Delhi, Hyderabad, Jaipur and Mumbai Sunday flights from Chandigarh: With resumption of to Surat from August 16, 2018 with ` Sunday flights from Chandigarh airport from July 1, 2018 fares starting from 1,999. Further, to which was closed since three months due to runway repair, Jet Airways has provide more enhanced connectivity launched Pune-Chandigarh-Pune flights from July 8, 2018. Along with this, across India, it has planned to operate IndiGo has already started flights to Kolkata and Bengaluru from the airport on three new routes, including Jaipur- Sundays. Varanasi, Jaipur- Guwahati and Mumbai-Bagdogra. Starts Dhaka-Kolkata flights: IndiGo Cathay’s ten years in has announced to start daily Dhaka- Bengaluru Kolkata flight from August 1, 2018. “We are pleased to announce Dhaka l Cathay Dragon celebrated 10 years as our ninth international destination of passenger flight operations between effective August 2018,” says William Bengaluru and Hong Kong on July 2, Boulter, Chief Strategy Officer, 2018. The flights, launched in 2008, IndiGo. marked the first time for Cathay Dragon to operate flights from India. In celebration of the 10th anniversary, the airline’s check-in counters wore a festive look and passengers travelling from Medical care with Etihad Bengaluru were given commemorative l Ensuring continuity of care and gifts. Also, to celebrate the moment, the in-flight safety, Etihad Airways has airline launched a special offer – 10 per launched two specialised services for cent discount on fares from Bengaluru air travellers with pre-existing medical to destinations such as San Francisco, conditions. The one-stop-shop services Welcome back Air Deccan Los Angeles, Vancouver, Toronto, will be carried out by members of the l A month after Seoul, Narita, Taipei and Hong Kong, Etihad medical team, all of whom are suspending flight operations applicable on tickets booked on the qualified in aviation and transport medicine. The first service allows guests, on the routes airline’s website for travel until the end connected of the year. who require medical clearance prior to travel, the opportunity to request an under UDAN, Etihad aviation doctor to visit them and Air Deccan has conduct an evaluation in consultation resumed its all with their attending physician and provide nine operations 'fit to fly' status to the flier. The second in Maharashtra service is the introduction of an in-flight from July 15, 2018. The airline serves nurse who can accompany guests during nine routes, which connect underserved their trip and provide medical support. airports (which do not see more than Gastronome delight: Etihad Airways has one flight operating in a day) of Jalgaon, introduced additional food and beverage Nashik and Kolhapur from Mumbai and items to its recently launched menu of Pune. Operations on these routes were 'Buy on Board' products to provide more suspended for almost a month since choice for guests in Economy Class and June, since the airline claimed it was further enhance their travel experience. facing a financial crisis. United coming to Mumbai l United Airline has announced to start daily service from Mumbai to New York from October 28, 2018 with its Boeing 777-300ER. In a statement, airline informed that the new aircraft "featuring the United Polaris business class seat" will replace the Boeing 777-200ER once daily service starts. "I am confident our customers in India will appreciate the elevated inflight experience offered by our all-new United Polaris business class seats onboard this aircraft," Harvinder Singh, Country Manager India, United Airlines said in a statement.

www.cruisingheights.in August 2018 73 Cruising Heights BACK PAGE A TRIBUTE TO A SUPERSTAR

hen Amitabh Bachchan turned 75 sometime ago, Cruising Heights’ Pic- ture Editor Pradeep Chandra decided to celebrate it in his own special way. Chandra, a renowned photojournalist, author and occasional painter, who has been photo- graphing the superstar for the last 40 years teamed with eminent film archivist, historian and author S M M Ausaja to curate ‘Frames 75’, an exposition that uses rare photographs, paint- ings, sketches, posters, block print art, vinyl LP covers, lobby cards and hand-bills in 75 frames. The two have been working on the Frames 75 concept for the last eight months. They spoked to the superstar about the images and the concept and when he read- ily agreed to inaugurate the show, did they start assem- bling the exhibition. Recounting their associ- ation with Bachchan, Chan- dra said: “We both have been fans of Amitabh Bachchan. I started my career almost at the same time as Amitabh Bachchan did. When he was shooting for Reshma aur Shera in Rajasthan, I was shoot- ing for Do Raaste and Mera Gaon Mera Desh in Rajasthan.” Chandra and Ausaja have been friends for a long time. Commenting on their similarity with Bachchan, he was quoted saying that all three of them could trace their roots to “Ganga Kinare”. While the photographer was born in Varanasi, Ausaja is from Kanpur and Bachchan from Allahabad, the city of Ganga-Jamuna and Saraswati. Chandra’s photos have appeared in various magazines and publications. He has also writ- ten a book, AB The Legend: A Photographer’s Tribute. Before doing the book, he organised an exhibition on Amitabh Bachchan to coincide with the star’s 61st birthday. That had 61 art- works, photographs, furniture, sculptures, etc. It was inaugurated and praised by the star and received critical acclaim. CH

74 August 2018 www.cruisingheights.in

RNI NO. DELENG/2006/16897