SP's Airbuz Magazine

Inaugural Issue SP’s

An Exclusive Magazine on Civil A viation from India

Deceptively BRIGHT? Analysing the true picture of Indian aviation

• PILOTS TRAINING • BUDGET ANALYSIS & MUCH MORE...

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SP.AVI_267x420_Comfort.indd 1 20/2/08 16:57:24 Table of Contents

�� Cover Photo: �� A shot of the side wing captured �� onboard a Jet Airways flight. India’s aviation sector is a Cover Story �� canvas of conflicting scenarios, �� Operations of remarkable achievements �� Indian Civil Aviation 2008 clashing with stifling realities. ��

�� Photo: Ratan Sonal �� 9 SP's Airbuz_Cover.indd 1 4/26/08 1:49:09 PM

AN SP GUIDE PUBLICATION SP’s

An Exclusive Magazine on Civil A viation from India

Infrastructure 13 Finance Budget 2008 Hopes Dashed

16 MAINTENANCE MRO in India Environment Initative 19 Boeing and Airbus Join Forces to improve Aviation’s Environmental Performance

PUBLISHER AND EDITOR-IN-CHIEF ASSOCIATE ART DIRECTOR: Ratan Sonal ViewPoint Jayant Baranwal LAYOUT DESIGNS: Raj Kumar Sharma 20 AOPA EDITOR PHOTO EDITING: Ratan Sonal Emerging role in General Aviation Air Marshal (Retd) B.K. Pandey © SP Guide Publications, 2008 Operations ASSISTANT EDITOR BUSINESS AVIATION ROLE Arundhati Das ANNUAL SUBSCRIPTION 22 Inland: Rs 600 • Foreign: US$180 Business Aviation & Corporate SPECIAL CORRESPONDENT & COPY EDITOR Sanjay Kumar Advt. details may be acquired from the contact CHARTERED SERVICES information below: 25 SUB-EDITOR Charter your way into the future Bipasha Roy SP GUIDE PUBLICATIONS PVT LTD Postal address Post Box No 2525, Technology New Delhi 110 005, India. CONTRIBUTORS TRAINING Group Captain A.K. Sachdev, 27 Group Captain Arvind Oak, CORPORATE OFFICE Flight Simulators R. Srinivasan, A-133 Arjun Nagar, (Opposite Defence Colony), Group Captain Joseph Noronha, New Delhi 110 003, India. Fact File Dr Ram Pattisapu, Tel: +91 (11) 24644693, 24644763, 24620130 AIR INDIA Europe Alan Peaford, Phil Nasskau Fax: +91 (11) 24647093 30 USA & Canada Anil R. Pustam (West Indies) REGISTERED OFFICE CHAIRMAN & MANAGING DIRECTOR Fax: +91 (11) 23622942 Regular Departments Jayant Baranwal Email: [email protected] Owned, published and printed by Jayant Baranwal, Preface REPRESENTATIVE OFFICE 3 printed at Rave India and published at A-133, Arjun Nagar (Opposite Defence Colony), New Delhi BANGALORE, INDIA 534, Jal Vayu Vihar, Kammanhalli Main Road, Letter from Editor 110 003, India. All rights reserved. No part of this 4 publication may be reproduced, stored in a retrieval Bangalore 560043, India. Tel: +91 (80) 23682534 system, or transmitted in any form or by any means, NewsBrief photocopying, recording, electronic, or otherwise 5 without prior written permission of the Publishers. www.spguidepublications.com

Next Issue : Emerging Trends in Aeroengines

2 • SP’S • Inaugural Issue • 2008 Preface

acophony surrounding the bustling sluggish administrative machinery, shrinking workforce, Indian civil aviation sector inexplica- dwindling resources, piling losses—the list runs on, but bly lacks a voice. The buzz lacks an ex- what shines through the rubble of chaos is the streak of clusive bus. An industry witnessing an resolute determination to weave a success story. India is unprecedented growth—and, in turn, determined to fly. rendering an emphatic momentum to Carried on the wings of this nation’s dreams to touch the economy and trade structure of the sky and beyond, SP’s presents the ideal platform to the country—is unaccountably deficient in that it has no showcase and broadcast the twists and turns that will Cunique vehicle to convey the concerns, ambitions, achieve- shape the civil aviation industry and ultimately determine ments and anticipations of its key drivers and architects. the tenor of its success story. As with all other reputed It is being spoken about, yes. But is it being heard? publications from our stable, SP’s AirBuz will every alter- It is precisely this vacuum that SP’s AirBuz seeks to fill. nate month bring to you a swath of holistic, incisive and Motivated by the unflagging enthusiasm of our readers in-depth news, views and interviews from the industry. and their persistent clamour for more news from a sector Donning the Pilot-in-Command’s hat is Air Marshal that has redefined travel for the Indian middleclass even (Retd) B.K. Pandey as Editor of the magazine. as it spins fantastic bonanzas for the business traveller, Welcome aboard! SP’s has stepped in to launch the first Indian journal of its kind dedicated solely to civil aviation. What enthused us further were the contrasting and sharply conflicting scenarios afflicting the industry. It’s a fascinating grid. On one hand, is the contagious excitement and overwhelming applause for the unparalleled boom in the number of operators crisscrossing Indian skies, the remarkable increase in air traffic achieved at a breathtakingly short span of time and the increasing number of foreign players eager to grab a piece of the pie. That’s the rosy picture. Toss the coin, and the flip side makes one wonder at the audacity of the ambitious trend in steadfastly clinging to its objectives and tenaciously Jayant Baranwal pursuing its goals in defiance of the daunting challeng- Publisher & Editor-in-Chief es. Failing infrastructure, unwieldy government policies,

Inaugural Issue • 2008 • SP’S • 3

A Word from Editor

LYING IS A HEADY EXPERIENCE VLJ as opposed to regular airlines. Dr Ram Pattisapu, a and aviation a flourishing business surgeon turned aviator NRI from the US and President of in India. Reporting on the aviation Aircraft Owners` and Pilots` Association (AOPA), India, industry, on the other hand, calls for highlights the potential for growth of General Aviation serious introspection. Both, however, in the country. This is an area wherein archaic rules and are not without some element of thrill bureaucratic mindsets have proved to be major impedi- and thunder. Capturing the current ments. environment of rapid transition powered by high ex- What better time than now to launch a journal on Fpectations and booming economy, the team at Guide India’s buzzing, booming aviation sector. Come, hop on Publication brings you SP’s Airbuz—a unique effort to and let’s fly! showcase the phenomenal growth of the civil aviation industry. However, behind all the glamour there is an industry that is constantly battling daunting challenges and struggling to cope with explosive demand for air travel despite severe constraints. Debuts are invariably characterised by a distinct flavour. We, at SP’s, appreciate this and have worked to bring you an all-encompassing scenario incorporat- ing news, views, reviews and in-depth analyses of the developments and distinctions that have made headlines in the aviation sector. In this inaugural issue, the cover story provides a comprehensive picture of the state of civil aviation in the country. While A.K. Sachdev delves into the Budget 2008 searching in vain for the minut- est trace of relief or solace for the civil aviation industry under pressure of rising input costs, Arvind Oak highlights the opportunities for the industry in the regime of flight simulators dominated by a handful of foreign players. R. Srinivasan looks at the MRO scene in India Air Marshal (Retd) B.K. Pandey and Joseph Noronha illustrates why it might be prudent Editor and affordable to patronise air charters, especially the

4 • SP’S • Inaugural Issue • 2008 Earlier, Buffet had admitted it was one of his few indulgences. Subse- quently, what elevated the business jet from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts pro- ductivity.News A recentBrief CNN report quoted

: OPERATIONS and Landing Reduction tool kit Global Conference on Indian Airports: The Emerging Opportunities says: “The importance of being Hunt for new DGCA go-around-prepared and being FICCI, in association with the Ministry of Civil Aviation, has organised Identifying a suitable candidate go-around-minded must be em- a two-day global conference on the emerging opportunities in Indian for the post of Director-Gen- phasised, because a go-around airports from April 29 to 30. The conference will open with the inaugu- eral of Civil Aviation (DGCA) is is not a frequent occurrence ral address by Civil Aviation Minister Praful Patel and will further run proving to be an uphill task for in six sessions covering the major aspects of Indian airports by many the Government. The present Birds & animals pose hazard eminent speakers: Session 1: Indian Airports: the Emerging Opportunity DGCA Kanu Gohain was to at Indian airports Session 2: Public-Private Partnership & Investment Models for Airports have retired on June 31, 2007. Passengers and crew of a JetLite Session 3: Exploring Aerotropolis: The Airport City Vision His tenure has been extended flight bound for Coimbatore from Session 4: Technologies for Airport Management twice for six months each due to Bangalore had a miraculous es- Session 5: Freight & Logistics Services the non-availability of suitable cape after one of its engines was Session 6: Maximising Non-Aeronautical Revenues replacement. According to the hit by a bird on take off. The pilot advertisement, the candidate abandoned take off and the air- must have had “twelve years of craft was later towed into a park- Dragonair & Cathay Pacific up its licences after its merger experience in aviation/flying/ ing bay for investigations. Flight Dragonair plans to commence with Air Deccan is completed in aircraft engineering/airworthi- schedules at the airport were service to Bangalore on May order to use the budget carrier’s ness, out of which, a minimum disrupted for more than an hour 1 with daily flights operated entitlement to launch overseas of five years of experience following the incident. On March by A330-300 aircraft offering flights under the Kingfisher should be in administration and 27, the nose wheel of a Kingfisher Business and Economy classes. brand. The merged entity would finance disciplines at the senior ATR 72 collapsed when it hit a Further, Cathay Pacific will make require IATA membership, management level”. The last stray dog on the runway during its first foray into Southern India besides clearing a host of other date of receipt of application take off. In yet another incident in June 1, when the airline plans formalities. A recent meeting was March 25. highlighting the dangerous con- to operate four flights a week at the civil aviation ministry re- ditions prevailing on runways in from Chennai to Hong Kong. In vealed that several new obstacles Traffic congestion hazards the country, a 48-seater Air India addition to this, the airline has have come up in the way of Jet Airways flight, which was regional flight hit a nilgai while also introduced daily flights from Kingfisher Airlines’ plan to fly on on its final approach to land at landing at the Chakeri airport Mumbai and Delhi beginning foreign routes using Air Deccan’s Mumbai airport on 4 April, was in Kanpur on Thursday. The 47 February ’08. entitlement. It is not as simple asked to abort landing and do passengers on board and four as it looked initially, government a go-around after a Spice Jet crew members however escaped Tiger Airways sources said. The civil aviation aircraft standing on the runway unhurt. The Delhi-Kanpur-Al- Singaporean LCC Tiger Airways ministry has said the merger started rolling for take-off. lahabad flight, CD 7801, had will launch its third service to of Kingfisher with Air Deccan While go-arounds have now just landed at Kanpur when the India with a new Bangalore route should be completed before the become a regular occurrence in incident occurred. from June 01, 2008 with a four merged entity gets in-principle the congested Mumbai airport, day weekly flight. Tiger is the approval for flying overseas. The this one was a serious matter Air Arabia only Singapore based low fare launch of overseas flights by the as there were two aircraft, both Air Arabia, the first and largest airline to operate between India UB Group airline therefore is climbing in the same direction, low-cost carrier in the Middle and Singapore. likely to be delayed. albeit from different altitudes. East and North Africa, has began Hours before this incident, on non-stop service between Gulf Air Modernisation of Amritsar the same day, a Go Air aircraft Sharjah, the carrier’s main hub, Gulf Air has been granted addi- & Udaipur airports landed on a closed runway. On and Kozhikode in Kerala. Flights tional capacity to India follow- The Airports Authority of India Saturday afternoon there was will initially operate three times ing a bilateral agreement. The has initiated upgrade of Amritsar another go-around at the Mum- a week, increasing to six times agreement between Bahrain’s and Udaipur airports through a bai airport, this time involving weekly by end-May. The inaugural Civil Aviation Affairs and their public private partnership which a Kingfisher Airlines and an flight took off from Sharjah Indian counterparts gives Gulf will include commercial opera- Air India flight. This incident International Airport on February Air operating rights to Hyderabad tion, maintenance of terminal involving the Jet and SpiceJet 27. “The launch of this regular on a daily basis. It also grants the building and development of city flights had the aviation frater- service to Kozhikode underscores airline additional rights for daily side facilities, including cargo. As nity divided as far as the threat Air Arabia’s commitment to the services to Kochi and Kolkata. per AAI, the following companies perception was concerned. The burgeoning Indian market and have been short-listed: ministry of civil aviation has the state of Kerala,” said Adel Virgin Atlantic For Amritsar: been saying that such instances Ali, Board Member and CEO Virgin Atlantic chief, Richard • Reliance Energy Limited are “simple safety procedures of Air Arabia. The other two Branson, is lobbying for permis- • Fraport AG Frankfurt Airport carried out the world over”. destinations Air Arabia serves in sion to operate on Indian domes- Services Worldwide. Commanders, on the other Kerala are Kochi and Thiruvana- tic routes. • TADL-Changi Airports-Tata hand, sounded alarm bells, for nthapuram. In addition to Kerala, Power. Friday’s incident. The Flight Air Arabia flies to seven other Kingfisher/Air Deccan • Lanco Infratech Ltd & Genting Safety Foundation’s Approach destinations in India. Kingfisher airline has to give (Singapore) Pvt Ltd.

Inaugural Issue • 2008 • SP’S • 5 Earlier, Buffet had admitted it was one of his few indulgences. Subse- quently, what elevated the business jet from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts pro- ductivity.News A recentBrief CNN report quoted

• L&T IDPL-Unique Consortium. and from India. That situation honing our emergency response participate in an event highlight- For Udaipur: has improved drastically now system,” Chopra said. ing Cathay Pacific’s new Hong • Reliance Energy Limited and the flights being added by Kong-India flight plans. • TADL-Changi Airports-Tata Cathay Pacific and Indian car- First Boeing 777 Freighter Power. riers will help to realise the full enters final assembly Boeing, Biman Airlines sign • L&T IDPL-Unique Consortium. potential of trade and tourism Final assembly work began on deal for B777s, B787s • Maytas Infra Ltd-NCCIHL-VIE between Hong Kong and India.’’ the first 777 Freighter at the Biman Bangladesh Airlines Indieu & Beteiligungen Gmbh. The number of flights to Delhi Boeing company this week. have placed orders for four • GMR Infrastructure Ltd has already increased from four The new cargo airplane will B777-300ER and four B787-8 The Request for Proposal bid a week to 14 a week, while six roll out later this month and Dreamliner aircraft. The order documents will be issued by May. more flights have been added is scheduled to be flight tested for new Boeing aircrafts repre- to Mumbai making a total of 10 this summer. The 777 Freighter sents a major step forward in Deccan Aviation to set up per week. will fly farther and provide the airline’s reorganisation and Deccan Cargo In addition, a new four- more capacity than any other growth plans. The airline also Captain G.R. Gopinath of Air times-weekly service from the twin-engine cargo airplane. has purchase rights for four Deccan, India’s first budget city of Chennai will launch on Boeing will deliver the first 777 B777s and four B787s. Biman carrier, has announced his June 3, while Cathay Pacific’s sis- Freighter to its launch customer currently connects Bangladesh intention to launch a new cargo ter airline Dragonair will launch Air France in the fourth quarter with 18 countries around the airline and logistics firm, Dec- a new daily service to Bangalore of 2008. The 777 Freighter is world, and has agreements in can Cargo, which will start op- in late May. While the main based on the 777-200LR World- place that will allow it to serve a erations by the end of the year focus has been on passenger liner passenger airplane and is total of 42 countries as it imple- with nine leased A-310 aircraft. flights, Cathay Pacific has also built using the same production ments its growth plan. Gopinath said he would own a clear to expanding freighter line as all other models of the 100 per cent of Deccan Cargo, services to and from India. 777. Eleven customers around Non-stop Lufthansa business and that he would invest $200 the world have ordered 78 Boe- jet service to Pune million (Rs 800 crore) in the new DGCA sets up National ing 777 Freighters. Lufthansa is fast expanding its venture. Currently vice-chair- Aviation Safety Team services to key Indian cities for man of Deccan Aviation, which The DGCA has formed a “na- Hong Kong Transport business and leisure travellers has been acquired by Kingfisher tional aviation safety team” that Secretary in India alike. From July 1 2008, Germa- Airlines, Gopinath said he would will deal with issues related to Eva Cheng, Hong Kong’s secretary ny’s largest airline will launch run the cargo airline indepen- safety in flying. This team will for transport & housing, left for a new route from Frankfurt dent of the existing carrier. consist of a number of sub-com- New Delhi on a two-day visit dur- to Pune in western India. In mittees with members from ing which she will also hold talks all comfort passengers will be Air Dravida to begin airlines and airports, along with with Indian minister for civil avia- able to reach Pune non-stop, operations other stakeholders to address tion, Praful Patel. The two minis- six times a week in an Airbus Air Dravida, a regional airline of issues such as operations and ters will discuss development of A319 which has been refitted south India has been granted runway incursions. Addition- India-Hong Kong air services.Last as a Business Jet. Lufthansa NOC to commence operations ally, the DGCA will implement December, India liberalised avia- will operate services to Pune as in July. Promoted by Premier a “safety management system” tion agreements with Hong Kong all-Business Class flights. The Tours and Travels, the airline that will be mandatory for SAR, allowing frequency of air Airbus A319 has been refitted as will invest Rs 110 crore for an all airlines from next January. services between the two Asiatic a Business Jet and is operated initial fleet of three all-economy “Under this system, there will be destinations to more than double. by PrivatAir, a VIP and business 50-seat jet aircraft, increasing accountability by fixing respon- The agreement was perceived as aviation specialist. to five by end 2008. The airline sibility for each thing,” Gohain a major breakthrough. will launch Chennai-Madurai said at a meet on aviation safety Hong Kong-based Cathay ICAO’s report shows service initially and is prepared in Mumbai. Pacific has enhanced services to decrease in air accidents to lease additional aircraft if The DGCA has also an- Delhi and Mumbai and is due to ICAO’s analysis of prelimi- there is demand. nounced that the Indian launch a new service to Chennai nary information provided airspace will soon be managed in June this year. India’s largest by Member States regarding Cathay Pacific plans to through a performance-based private carrier, Jet Airways, began aviation safety and security in expand services safety management system, services this month on the Mum- 2007 shows a slight decrease Cathay Pacific Airways plans to which will allow more planes to bai-Hong Kong route.Other Hong in the number of fatal aircraft expand services by June 2008 to fly at lesser distances and en- Kong and Indian carriers are also accidents and in the overall and from India adding 20 flights able airports to accommodate due to start, or increase, services accident rate for scheduled a week.This follows a new air higher volume of traffic. between the two destinations. operations. In 2007, there were services agreement between According to joint director According to available figures, last 11 accidents with 587 passen- Hong Kong SAR and Indian general, DGCA, AK Chopra, In- year, a total of 346,870 passengers ger fatalities on scheduled air governments in December 2007. dia had a three-tier safety audit traveled between Hong Kong and services worldwide for aircraft ‘’Hong Kong is a superb hub but system, including checks by air- India, which was up 5 per cent with a maximum take-off mass there is no doubt that it was un- lines, third parties as well as the from 2006.During her visit, Ms of more than 2250 kg, usually der-served in terms of flights to regulator. “We are constantly Cheng and Indian officials will seven passengers or more. The

6 • SP’S • Inaugural Issue • 2008 Earlier, Buffet had admitted it was one of his few indulgences. Subse- quently, what elevated the business jet from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts pro- ductivity.News A recentBrief CNN report quoted

kilometres performed. the ARJ21-700 regional jet in fuel burn, environmental emis- Event Calendar For non-scheduled opera- September or October of this sions, engine noise and operat- tions, there were 14 accidents year, and with the efforts from ing costs. The programme will REGIONAL AIRLINE with 86 passenger fatalities every party, we will try our best begin later in the year. ASSOCIATION for aircraft with a maximum to avoid development issues Pratt & Whitney’s Geared CONVENTION take-off mass of more than 2250 to delay entry into service,” Turbofan demonstrator engine May 2008 kg in 2007, compared with 17 President Luo Ronghuai said. recently began Phase II ground May 5-8, Indiana Convention accidents and 91 passenger The first 90-seat -700 is expected testing at the company’s Center and fatalities in 2006. to be delivered to Shandong Air- advanced test facility in West RCA Dome, Indianapolis. lines in September 2009. ACAC Palm Beach, Fla. Phase II of Info: (202) 367-1170; : TECHNOLOGY has received 181 orders for the the ground test program will www.raa.org. ARJ21-700. In addition, GECAS focus on engine performance EUROPEAN BUSINESS Bio fuel for commercial became the first Western cus- and acoustic characteristics AVIATION CONVENTION aviation tomer to commit to the aircraft, with a flight-capable nacelle & EXHIBITION There were a couple of strange signing an MOU for five aircraft system prior to mid-year flight May 20-22 things about the Virgin Atlantic plus 20 options last week. testing. The Geared Turbo- Palexpo Convention Center, Boeing 747 that taxied out at Separately ACAC and fan demonstrator engine has Geneva. Heathrow and took off. The China National Aero-Technology logged approximately 150 hours Info: (202) 783-9000; +32-2- plane was the first commercial Import & Export Corporation since ground testing began in 766-0076; www.ebace.aero. jet ever to fly on biofuel, a fuel signed an agreement for a stra- November 2007. produced from plant matter in- tegic cooperation on the ARJ21 In 2007, Pratt & Whitney’s 2008 REGIONAL AIR stead of petroleum or other fos- programme for international Geared Turbofan engine was se- CARGO CARRIERS sil fuels. “This is the first stage market development and after- lected as the exclusive power for ASSOCIATION SPRING CONFERENCE on a journey towards renewable sales service. the new Mitsubishi Regional Jet May 20-22 fuel,” Virgin founder Richard and the proposed Bombardier C Marriott Westfields, Branson told reporters in the Airbus tests Oceanic Series. The Mitsubishi Re- Chantilly, Va. hangar shortly before takeoff. ADS-B system gional Jet program was officially Info: www.raccaonline.org. Virgin’s eco-plane ran only Airbus has completed in-flight launched on March 28, 2008, one engine on the experimental demonstration with its A340 with an order from All Nippon HELI-PACIFIC 2008 CON- fuel; the other three burned and an SAS A330 during which Airways. The C Series program FERENCE & EXHIBITION standard jet fuel. And the bio- the former performed several is expected to launch later this May 27-29 fuel-powered engine was using altitude changes in relation to year. Both aircraft are sched- Royal Pines Resort, Gold a blend of conventional jet fuel the latter in oceanic airspace uled to enter service in 2013. Coast, Australia and biofuel: 80/20 in favor of the using a new ADS-B system that The Geared Turbofan engine Info: +44 1628 606 979; www. regular stuff. In total, then, just includes an Aviation Com- is expected to set new standards shephard.co.uk/HELI-PA- 5% of the 49,000-lb (22,000 kg) munication & Surveillance in environmental performance CIFIC fuel load consisted of the nov- Systems Traffic Computer. and operating value for the ILA BERLIN elty: a special mix of coconut Airbus said the A340 pilot was next generation of commercial May 27 - June 1 oil and oil from the Brazilian able to receive on his navigation aircraft. In a Geared Turbofan Berlin-Shoenefeld Airport, babassu plant, prepared by display all flight identification engine, a state-of-the-art gear Berlin. Seattle-based Imperium Renew- and positioning information system allows the engine’s fan to Info: www.ila-berlin.com. ables over the last 18 months relating to surrounding aircraft. operate at a different speed than ANNUAL PILATUS and tested by General Electric The procedure, called Cristal the low-pressure compressor OWNERS & PILOTS Aviation in Ohio. ITB, “will enable aircraft to more and turbine, resulting in greater (POPA) CONVENTION easily perform altitude changes fuel efficiency and a slower fan May 29–31 Maiden flight of ARJ during cruise which can signifi- speed for reduced noise. The Palm Coast, Fla. 21 postponed cantly improve flight efficiency, Geared Turbofan engine builds Info: 520-299-7485; AVICI Commercial Aircraft Co. reducing fuel burn and emis- on more than 20 years www.pilatusowners.com will postpone the first flight of sions,” Airbus said. It currently is of technology development the ARJ21 at least six months to certifying the ACSS system. with improvements in every this September/October owing major module. accident rate for scheduled air to the fact that “supplier[s] of key Airbus, Pratt & Whitney to Pratt & Whitney has over services, measured in passenger systems were not able to provide flight test Geared Turbofan 17,000 aircraft engines installed fatalities per 100 million passen- necessary test conditions on Airbus and Pratt & Whitney with hundreds of airlines ger-kilometres, decreased from time.” The aircraft was scheduled will partner on flight testing around the world. Additionally, approximately 0.019 in 2006 to to take to the skies in March. the Geared Turbofan engine Pratt & Whitney is a leading about 0.014 in 2007. This decline ACAC promised it is making ef- using an Airbus-owned A340 participant in two joint venture is due to a 21.8% reduction in forts to ensure that the delivery flying test bed to gain first-hand companies that manufacture passenger fatalities coupled of key systems is on schedule. experience on the performance commercial aircraft engines: In- with an increase of around 6.6% “While we are disappointed of the engine which targets ternational Aero Engines, which in total scheduled passenger with this delay, we expect to fly double-digit improvements in makes the V2500 for the Airbus

Inaugural Issue • 2008 • SP’S • 7 Earlier, Buffet had admitted it was one of his few indulgences. Subse- quently, what elevated the business jet from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts pro- ductivity.News A recentBrief CNN report quoted A320 family of aircraft, and the Boeing, near the upcoming Appointments Engine Alliance, whose GP7200 international terminal of the engine is FAR 33 certified for the Thiruvananthapuram interna- Deccan Aviation names Vijay Mallya Chairman new Airbus A380. tional airport. Budget airline Deccan Aviation’s board has named Vijay Mallya Pratt & Whitney is a world as Chairman, replacing N.S. Narahari who will continue as director. Deccan Aviation’s founder G.R. Gopinath will be the Vice leader in the design, manufac- Private players to supply Chairman, the company said in a notice to NSE. ture and service of aircraft en- aviation fuel gines, space propulsion systems The aviation fuel industry, a Aerosonic announces New Chief Executive and industrial gas turbines. public sector oligopoly, is set Officer and Director to undergo a sea-change with Aerosonic Corporation, a leading supplier of precision flight Garmin launches G1000 new entrants getting into the products for commercial, business and military aircraft, an- light avionics fray. Reliance Industries (RIL) nounced the appointment of Douglas Hillman as President and Garmin unveiled the G950 has commenced operations at Chief Executive Officer. avionics suite at the Sun ’n’ 13 non-metro airports while Executive shuffle at Bombardier Aerospace Fun Fly-In in Lakeland, Fla., two other players, Essar Oil Bombardier has announced substantial changes to its aerospace on 8 April. The glass avionics and Mangalore Refinery, will be- group leadership team, most notably naming auto industry suite, dubbed “G1000 light” by come operative in the next few veteran Guy Hachey Bombardier Aerospace’s new president and a spokeswoman, is designed months. With policy changes COO, effective May 12. Bombardier also appointed Gary Scott for aircraft manufacturers who by the ministry of civil aviation, president of Bombardier Commercial Aircraft, a new business unit want a standardized avionics the market is now opening up. integrating regional aircraft and new commercial aircraft program business units; Steve Ridolfi president of Bombardier Business Air- configuration and will com- The biggest attraction is craft; and James Hoblyn president of Bombardier Aircraft Services. plete certification of their that aviation fuel is one of the airframe’s avionics panel on few petroleum products that is Hawker Beechcraft Corporation appoints Charles their own. Quartz Mountain out of pricing control. Air traffic Mayer as Vice President of Marketing Aerospace is the first manufac- too is growing at all-time highs, Hawker Beechcraft Corporation (HBC), has announced the turer to select the G950, for its leading to a huge growth in appointment of Charles D. Mayer as vice president, marketing. four-place piston single. “The aircraft movements. Consump- Mayer is responsible for developing and implementing strategies and branding initiatives for all marketing activities supporting G950 is a step between the tion of aviation fuel was about Hawker Beechcraft products and services worldwide. G900X and G1000,” said Garmin 4 million tonne in FY07 — just vice president of marketing around 3.3 per cent of India’s Gulfstream names Jim Gallagher Program Director Gary Kelley. total petroleum consumption. of new Gulfstream G650 Since the G950 isn’t However, it is likely to grow at Gulfstream Aerospace has appointed Jim Gallagher to lead the customizable and doesn’t around 15 per cent per annum Gulfstream G650 Entry-Into-Service (EIS) program. Gallagher include the GFC 700 autopilot, over the next few years. will develop and implement a plan for bringing the all-new business jet to market in 2012. he said, “OEMs will also have the benefit of a streamlined InterGlobe General Boeing names Paul Kinscherff to lead business in Gulf States certification process.” Like the Aviation Pvt Ltd The Boeing Company has named Paul Kinscherff the G1000, the G950 integrates InterGlobe General Aviation president of Boeing Middle East. He will be based in Dubai, all primary flight, navigation, Pvt Ltd (IGGA) plans to have a United Arab Emirates. • communication, terrain, traf- fixed based operations for pri- fic, surveillance, weather and vate jet aircraft in either Chen- engine sensor data on two or nai or Bangalore in 2009, the scheduled airlines. amid growing congressional three Garmin high-definition Chief Executive Officer, Mr Nigel The Chairman and Chief and other scrutiny of airline LCDs. However, the Garmin Harwood, said on 26 February Executive Officer, Hawker maintenance and inspection synthetic vision system, which while inaugurating the first Beechcraft Corporation, Mr practices and questions about was certified earlier this week Hawker Beechcraft authorised Jim Schuster, felt that if the Federal Aviation Administration by the FAA for the G1000, isn’t service centre. Government provided the right oversight. currently available for the G950, “At the moment, we are in tax breaks for corporates, and Four of United’s rivals have though the company might add talks with the GMR group, the infrastructure was developed in recent weeks taken aircraft this capability in the future. promoters of Delhi airport, further, then the sale of private out of service and canceled to have such a facility in the jets would boom. flights for lapsed maintenance : ENGINEERING/ Capital. “This will be followed inspections. MAINTENANCE by another in Mumbai”. Grounding of airlines United said in a statement Globally, an FBO is a stand- in the US that it discovered during a JV Air India & Boeing alone facility where private jets United Airlines, a unit of UAL regular review of maintenance Chief Minister V.S. Achuthana- park allowing passengers the Corp has grounded its entire records that tests on a fire ndan on 1 March set in motion flexibility of completing immi- fleet of Boeing Co 777 jetliners suppression system in the the civil work for Air India’s gration and security formalities and canceled flights to reexam- cargo hold had not been Aircraft Engineering Mainte- quickly rather than using the ine a fire suppression system. thorough enough. United said it nance Base, a Rs 70-crore joint area being used by passengers United’s announcement voluntarily disclosed the prob- venture between Air India and arriving by flights operated by on its 52 long-haul 777s comes lem to the FAA. SP

8 • SP’S • Inaugural Issue • 2008 OPERATIONS / ANALYSIS Indian Civil Aviation 2008 Cover Story PHOTOGRAPHS: AIRLINERS.NET

The explosive growth in demand for air travel in the wake of a resurgent economy has provided powerful impetus to all segments of the Indian aviation industry. This in turn has made it absolutely essential to rapidly expand infrastructure to support growth of the industry as also to ensure safe and efficient handling of air traffic.

By Air Marshal (Retd) B.K. Pandey

THE AIRLINE INDUSTRY Airlines, which with the benefit of government protection, had an indifferent business model with negligible concern for profit- NSPIRED BY THE EASING OF controls and economic ability. Without immunity against losses, many of the new airlines liberalization launched by the Narasimha Rao govern- in the private sector failed to survive. Only Jet Airways and Air ment, private airlines made their debut in the early nine- Sahara continued, both accumulating sizeable losses over the ties. Patterned on the Full Service Airline model, the years. Finally last year, Jet Airways acquired Air Sahara which is only one available in India at that point in time, the new now operating as its subsidiary under the name JetLite. entrants found themselves plunging headlong into com- The real turning point for the airline industry came with the Ipetition with the well entrenched national carrier Indian introduction of a low cost model in August 2003 by Captain G.R. Inaugural Issue • 2008 • SP’S • 9 OPERATIONS / ANALYSIS

by end-2013 the fleet will nearly double from its present strength. In the last two years, passenger growth rate was between 30 and 35 per cent. How- ever, this rate may not be sustainable and growth of passenger traffic is expected to stabilise at around 22 per cent per annum during the next two years. Private carriers who meet the eligibil- ity criteria of a minimum fleet strength of 20 aircraft and five years of operating experience have begun spreading wings abroad, hoping to grab a share of the international market. However, the DEMANDS ATTENTION: Boom in the sector does demand careful attention and high input costs in In- initiatives in terms of infrastrucutre, synergy dia may well blunt their in concerned agencies, etc. competitive edge. Boeing estimates that India will need 856 airliners in the next 15 to 20 years. NACIL (Air Gopinath, a prematurely India) already has on or- retired officer of the Indian ‡ “In the long term, there are der 68 aircraft from Boeing Army. Even without any and 43 aircraft from Airbus. prior experience of aviation plans to have 600 operational Kingfisher airlines will be related business, he first set the first Indian carrier to re- up Deccan Aviation, an air civil airports in the country for ceive the Airbus 380. charter company at Jakkur in scheduled flights.” So far, the thrust of Bengaluru. Later, he became domestic operators has the pioneer of the low cost primarily been directed concept in India which very at passenger traffic. Apart rapidly caught the imagina- from Blue Dart, essentially tion of both the travelling public and the potential entrepreneur. a courier company, there is virtually no airline dedicated to the The civil aviation sector witnessed rapid growth in the Tenth movement of cargo by air within the country. However, a number Plan period (2002 - 2007). From a mere four major scheduled air- of players are preparing to foray into this field. Given the low cost, lines in the beginning of 2003, there were as many as 11 in operation extensive and convenient system of road transportation available, by mid 2007. It is also noteworthy that since the early nineties till to develop a successful domestic air cargo model, where none is date as many as 10 airlines have failed to survive and discontinued available, may be a daunting task. No wonder that the forecast by operations. Some of these later resurfaced as Low Cost Carriers the Ministry of Civil Aviation pegs the growth of domestic air cargo under a new identity. The last to down shutters in 2007 was Delhi- to be a modest 4.5 per cent over the next decade. based Low Cost Carrier, Indus Airways. As a number of private airlines collapsed, the government raised entry barriers to allow only BUSINESS AVIATION the serious players to enter the market. Also, with the merger of Air Despite many impediments, the strength of the fleet of Business India with Indian and Kingfisher with Air Deccan, there are only Aviation aircraft which includes Corporate Aviation, Air Charters, seven major entities operational at present. Four smaller airlines Fractional Ownership Companies and private ownership by High have been granted license to operate as Regional Airlines. Net-worth Individuals, has grown from around 50 in 2003 to over By the end of 2007, the airlines all together had 335 aircraft, 200 by the end of 2007. Amongst the 65 companies registered with more than threefold increase since August 2003. In addition, there Non-Scheduled Operator’s Permit (NSOP), there is a distinct focus is government sanction to import another 72 aircraft taking the on acquiring modern Business Jet aircraft as opposed to piston or fleet strength to over 400 by the end of 2008. This rate of induction turboprop aircraft. Business Jets are more comfortable, fly at higher is likely to slow down somewhat and it is anticipated that in the speed but are significantly more expensive. In 2006-07, the induc- period 2009-2013, airliners may be inducted at the rate of 50 per tion of Business Jets in India was twice that in the previous year. year or four to five per month. Even by this conservative estimate, As import tariffs to the extent of 26 per cent were imposed only on

10 • SP’S • Inaugural Issue • 2008 OPERATIONS / ANALYSIS privately owned aircraft, several orders have either been cancelled eral Aviation aircraft. There is a move by the global aerospace or deferred, somewhat retarding growth in this segment. majors Boeing and Airbus to establish MRO facilities to support their growing fleets. Hopefully, encouraged by the 100 per cent INFRASTRUCTURE FDI permitted for MRO, in due course, such facilities would be The explosive growth in demand for air travel in the wake of a re- available for General Aviation aircraft as well. India is strategically surgent economy has provided powerful impetus to all segments placed to be a regional MRO hub. of the Indian aviation industry. This in turn has made it absolutely essential to rapidly expand infrastructure to support growth of the AIRPORT ECONOMIC REGULATORY AUTHORITY industry as also to ensure safe and efficient handling of air traffic. With the variegated collage taking shape on the aviation industry The civil aviation industry, propelled essentially by the private scene in India, there are apprehensions of confusion, contradictions, sector, experienced wild and unprecedented growth rate with the conflicts and imbalances seriously impinging on future growth. Pri- average of around 25 per cent per annum. Infrastructure, which vatisation could inflate the cost of airport services and ultimately the has been the responsibility of the government, could register an cost of air travel. Also, inadequacy in professionalism in the manage- annual growth rate of merely 4 to 6 per cent. To obviate the pos- ment of airports by private parties and profit motive could lead to sibility of uncontrollable chaos overwhelming the civil aviation compromise in air safety. The existing supervisory and regulatory industry on account of the widening chasm between the demand apparatus would have to be remodelled to cope with the complex and availability of infrastructure, it became necessary to speed up dynamics of the new situation in which there would be many more infrastructure growth. The government widely adopted the Pub- players apart from the state and central governments. It would be lic Private Partnership model to harness the enormous resources necessary to ensure a level playing field to promote private invest- and expertise of the private sector for the development of Green- ment in airports and foster healthy competition. It is in this context field airports at Hyderabad and Bengaluru, upgrade of Delhi and that the imperative need for an independent and adequately em- Mumbai airports as also of 35 non-metro airports. Plans have powered Airport Economic Regulatory Authority (AERA) has been been approved by the gov- felt. A universally accepted ernment for the extension of concept, the AERA would the secondary runway and coordinate and regulate expansion of capacity of the ‡ “There is a move by the global development and growth of international and domestic airport infrastructure and terminals at the Chennai air- aerospace majors Boeing and air traffic management, and port to handle an additional Airbus to establish MRO facilities thus have a critical role in 13 million passengers annu- the regime of air safety. ally. These are expected to be to support their growing fleets.” completed by 2010. Upgrade THE PRESSURE OF of the Kolkata airport has COMPETITION remained bogged down in With increasing compe- political quagmire related to the dispute with the Left over the tition in the Indian skies, the profitability of the domestic airline concept of privatization. The private sector will also be involved industry is under tremendous pressure. All operators are in the red in the management of airports in partnership with the AAI. The with cumulative losses of around Rs 2,500 crore at the end of the DGCA will continue to be responsible for oversight of aviation last financial year. This is likely to go up to Rs 2,800 crore by March safety, technical aspects and regulatory affairs. There is also talk 2008. The union budget for 2008-09 has left the industry to its own of privately owned Merchant Airports with 100 per cent FDI. devices with no relief whatsoever. The primary reason is the price As lack of infrastructure could be the single most debilitating of ATF which accounts for 40 per cent of the operating costs. In impediment the growth of the civil aviation industry, it is only in comparison with international standards, the price of ATF in India the fitness of things that there be a complete reorientation of pri- is very high primarily on account of central taxes. Some states levy orities with enhanced focus on infrastructure growth. Currently, of additional tax thereby aggravating the problem. Continuously ris- the total 451 airfields available in the country, there are less than ing price of crude in the international market, which has been hov- 110 with civil aviation and 60 with the Armed and Para-Military ering around $117 (Rs 4,693) per barrel, is unlikely to help matters. Forces, some of which are available for civilian use. With passage Ironically, all components of the civil aviation industry other than of time, the IAF is opening up more airfields for scheduled flights. the airlines are prospering financially. In the long term, there are plans to have 600 operational civil Efforts by airlines to overcome adverse economics by increase airports in the country for scheduled flights. These are to be de- in sheer volume are unlikely to provide lasting solutions. There is a veloped in phases through the PPP route and in partnership with real possibility that some of the smaller players may close down or state governments. These would involve staggering levels of in- merge with those with better financial disposition and staying pow- vestment. Progressive states such as Karnataka, Andhra Pradesh er. For the government-owned airline, survival will be contingent and Maharashtra would have several airports, each with empha- on performance. Privatization is therefore high on the agenda. sis on Tier II cities. Other states are likely to add one or two airfields to the existing facilities. The North East region will see a REGIONAL AIRLINES major thrust with a total of 26 airports, both old and new. The The year 2007 saw the introduction of the Regional Airline concept. pace of airport development is expected to be accelerated in the Some of the airlines that have Regional Airline status are MDLR, Para- Eleventh Plan period (2007-2012). mount, Zav Air, Jagsons, Star Aviation and Premier. Their Operations The other area, where the aviation industry is clearly defi- are restricted to within a ‘Region’ providing connectivity between the cient, is in respect of MRO facilities for private airlines and Gen- main regional airport, such as a metro, with smaller airports. Inter-

Inaugural Issue • 2008 • SP’S • 11 OPERATIONS / ANALYSIS regional or metro to metro routes are not permitted. However, as this applicants. However, shortage continues in the category of Com- pattern does not provide a viable business model, it is understood manders. But this is merely a passing phase as First Officers with that the policy is under review. Regional Airlines are likely to be given experience and appropriate training, will progressively fill slots greater flexibility in selection of routes to reduce losses. presently occupied by expatriates as Commanders. In a couple of years there should be a semblance of balance in the system. HUMAN RESOURCE CRUNCH A matter of serious concern is that of quality of human re- A logical fallout of the explosive growth in the civil aviation indus- source. It does not require much wisdom to visualize that in the try is the acute shortage of specialized manpower especially pi- mad rush to produce trained pilots, quality is likely to be a casualty. lots. Estimates are that the industry would need around 1000 pi- The selection process, having now acquired a degree of stringency lots to join the work force every year for new inductions as also to reveals that many of the newly trained pilots display pathetic lack replace those quitting the industry. Majority of the 40 odd govern- of knowledge, skill and aptitude. This is a reflection of the ques- ment flying clubs have been non-functional and the output from tionable standards of training in some of the flying schools both in the government-owned IGRUA at Rai Bareilly has been extremely India and abroad. Presently, the rejection rate stands at 80 per cent. low. Labile policies of the IAF, which was the traditional source of Recruitment of weak or ill trained pilots has serious ramifications pilots, especially commanders, has accentuated the uncertainty. on air safety. There is a serious shortage of Air Traffic Controllers, So huge is the demand that flying training schools across the a situation that impinges on air safety and unfortunately has no world have stepped in quickly to exploit the opportunity. Up to 2006, short term solution. The situation with regard to other disciplines freshers out of flying training schools abroad were readily employed though not ideal, is less difficult or worrisome. more on the basis of availability than capability. Extension of retire- ment age for pilots and permission to recruit expatriates helped THE FUTURE alleviate the situation a little. Today, altogether there are over 800 Despite the euphoria and optimism that has characterized the expatriates employed by the airlines. In the meantime, many of growth of the civil aviation industry in the last five years, entrepre- the defunct flying clubs have been revived and 26 new schools have neurs are acutely conscious of the challenges . The Indian economy been sanctioned in the private sector. A few of these are already is showing distinct signs of a slow down which in turn is bound to functional. The government is also in the process of setting up a impact the civil aviation industry. There is therefore, an imperative major flying training facility at Gondia, which together with IGRUA, need for further liberalization, removal of controls and growth ori- will have the capacity to train 200 pilots per year to begin with. ented policies to enable the industry to consolidate the gains of the Since mid 2007, the situation appears to be undergoing a vast Tenth and Eleventh Plan periods, which will undoubtedly go down change. Now for the vacancy of a First Officer, there are a dozen in history as the ‘Golden Era of Civil Aviation in India’. SP

DOMESTIC & INTERNATIONAL AIR TRAFFIC IN INDIA Apr ’07 May ’07 Jun ’07 Jul ’07 Aug ’07 Sep ’07 Oct ’07 Nov ’07 Dec ’07 Jan ’08 Feb ’08 Aircraft Movement (in ’000) International 19.21 19.40 18.77 19.72 19.93 19.60 20.60 21.72 22.78 23.07 20.97 Domestic 82.15 86.09 83.01 85.97 87.04 85.02 89.92 88.63 92.86 93.55 88.73 Total 101.36 105.49 101.78 105.69 106.97 104.62 110.52 110.35 115.64 116.62 109.70 Passengers (in million) International 2.28 2.33 2.30 2.36 2.43 2.22 2.29 2.62 2.85 2.92 2.54 Domestic 7.08 7.61 7.18 6.89 6.94 6.54 7.10 7.61 7.92 7.70 7.11 Total 9.36 9.94 9.48 9.25 9.37 8.76 9.39 10.23 10.77 10.62 9.65 Freight (in ’000 tonnes) International 93.95 95.09 92.77 96.12 94.82 95.83 95.03 90.94 98.82 89.25 95.98 Domestic 43.36 45.00 43.92 46.25 47.60 48.15 50.05 48.57 49.38 47.87 46.99 Total 137.31 140.09 136.69 142.37 142.42 143.98 145.08 139.51 148.2 137.12 142.97 Aircraft Movement Passenger Traffic Freight Traffic 2007-08 vs 2006-07 2007-08 vs 2006-07 2007-08 vs 2006-07 100 8 120

) 7

80 100

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io 6 ll

nt (in ‘000 (in nt 60 5 80 me

ve 4

40 tons ‘000 (in t 60

gers (in mi (in gers

gh ft

3 ei

ssen

ra Fr

20 Pa 40

rc 2 Ai

0 1 20 Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Month Month Month

International 2006-07 Domestic 2006-07 International 2006-07 Domestic 2006-07 International 2006-07 Domestic 2006-07 International 2007-08 Domestic 2007-08 International 2007-08 Domestic 2007-08 International 2007-08 Domestic 2007-08 Source: Airport Authority of India

12 • SP’S • Inaugural Issue • 2008 INFRASTRUCTURE / FINANCE PHOTOGRAPHS: AIRLINERS.NET Budget 2008 Hopes Dashed

The railways had a cash surplus of Rs 25,000 crore in the last fiscal year; combined losses of the airlines are expected to touch Rs 2,400 crore this fiscal year. Certainly, there was a case for the aviation industry’s concerns to be addressed sympathetically.

By Group Captain A.K. Sachdev Bangalore

HE LAST YEAR OR SO has seen tremendous sentence in the 187 long-winded paragraphs of the budget speech growth in the nation’s aviation industry. News- about aviation. It did not concern the air traveller but the import paper headlines roared out loud aviation tidbits of helicopter simulators (more of that later). All the aviation in- with regular frequency. In contrast, the media dustry expectations from the budget remained largely unfulfilled coverage on the aviation aspects of Budget by the Finance Minister’s proposals in his speech. 2008 was a lifeless squeal. Indeed, there was not The Economic Survey had iterated that “Profitability of Tmuch to write home about. There was only one the domestic airline industry is under tremendous pressure as Inaugural Issue • 2008 • SP’S • 13 INFRASTRUCTURE / FINANCE

SUSTAINABILITY A KEY TO SUCCESS: Airline operators need some breather from the ongoing level of pressure they are facing currently. They ﬁnally need to make proﬁts to ensure their survival

almost all airline operators in the country are reported to be mands, of the industry has been a rationalisation of taxes re- making losses.” While the Railways, posing a rejuvenated chal- lated to Aviation Turbine Fuel (ATF) so as to bring the fuel cost lenge to the airlines, had a cash surplus of Rs 25,000 crore at the to international levels and to relieve the airlines and the trav- end of the last fiscal year, the combined losses of the airlines are ellers of an oppressive tax burden on their fuel consumption, expected to tot up to Rs which has kept the fuel 2,400 crore this fiscal year. expenditure at around 40- Certainly, there was a case 45 per cent of the total ex- for the aviation industry’s ‡ “Profitability of the domestic penditure of airlines. At the concerns to be addressed moment, there is a tax lev- sympathetically. Nonethe- airline industry is under ied on ATF sales to airlines less, the Finance Minister, tremendous pressure as almost at anywhere between 4 to in his cautious approach 30 per cent depending on was balancing political all airline operators in the which state the fuel is up- pressures with economic loaded in. A small fraction ones. As a result, while the country are reported to be of this differential can be rail budget had good news making losses.” countered by ‘tankering’ - a for the rail traveller, the process which involves up- budget has no cause for the loading of fuel in excess of air traveller to cheer about. the quantity required. This There is little solace in the is done for the next leg of fact that the President alluded to an unprecedented boom in the journey in case the cost of fuel in the state where the up- the civil aviation sector and the speedy increase in passenger loading is taking place is cheaper than the fuel cost at the des- and cargo traffic. Let us examine what the budget proposals tination. However, the excess fuel an aircraft can carry is lim- spell out for the aviation industry. ited to its fuel tank capacity and its maximum take-off weight. One of the basic expectations, and indeed clamouring de- Moreover, there is a collateral damage - some of that fuel would

14 • SP’S • Inaugural Issue • 2008 INFRASTRUCTURE / FINANCE have to be burnt to fly the extra load of fuel onboard. ing need by the Finance Minister would have assuaged qualms The industry has been clamouring for a ‘declared goods’ about the current aviation infrastructure, which is already status for ATF and a uniform reduced rate of 4 per cent sales groaning under overload. tax across all states. The Finance Minister proposed no such At the same time the service tax base has been broadened tax cut. Indeed, the airlines were hit by a double fuel-related to include six new services. One of these is wet lease arrange- whammy. Firstly, the much dreamed about tax cut did not ment by airlines et al. Such an arrangement is outside the scope figure in the budget speech and secondly, a day later, oil PSUs of VAT because it does not involve the essential ingredient of raised the ATF prices by over 5 per cent. As a result, the cost transfer of right of possession. The imports of leased aircraft of ATF in Mumbai - the industry’s backyard, has gone up to and equipment will continue to be outside the purview of VAT Rs 48,655 a kilolitre. The burden, inevitably, will permeate but the reverse charge implications of service tax on imports down to the air travel- of services on such wet ler although airlines will leases could be significant. have a lot of introspection Dry lease arrangements are to do before they hike the ‡ Airlines can draw some comfort already within the ambit of fuel surcharge, which is VAT as there is a transfer already Rs 1,650, after the from the fact that availability of right of possession and latest ATF price hike. The at short notice will remain in effective control and will reason is simple. When remain outside the purview the ATF prices fell - once favour of air travel—at least of service tax. It may be in January and again in mentioned that wet lease February - airlines did not in the near future. is resorted to very rarely pass on the benefit to the in the aviation sector. The air traveller. budget proposal relates to One can not but help wet lease arrangements not drawing a comparison between the costs of air and rail travel. only for aviation but for shipping and oil rigs. While the simple logic of time saving being in favour of air trav- Para 139 of the budget speech reads thus, “To facilitate train- el can not be countered, the proposed slashing of rail fares by ing of helicopter pilots, I propose to remove the duty on heli- 2 to 7 per cent by the Railways Minister will bring AC II Class copter simulators”. This was hailed by the media as cause for Rajdhani fares lower than the average air fare on some sectors. cheer for the rotary wing community. As a sceptic, I would like Airlines can draw some comfort from the fact that availability to see a connection between the fact that the only foreseeable at short notice will remain in favour of air travel - at least in the import of a helicopter simulator in this FY is that by HATSOFF near future. Also the travel time differential in medium and - the CAE-HAL joint venture coming up in Bangalore. Para 139 long distance journeys would remain an attractive feature of may thus be seen as a triumph for the HAL lobby and not as an air travel. It may be worth noting that, given the financial con- act of kindness to the helicopter community. This is especially dition of the airlines, the cut in rail fares can not bring forth a so as simulator training is not, unlike in the case of fixed wing matching decrease in air fares just to counter the reduction in flying, a mandatory requirement for licensing by the DGCA. rail fares. NACIL, the Air India-Indian combine, was planned to raise Another fare related expectation of the airlines was a re- Rs 9,572 crore from internal sources and external borrowings. moval of service tax on first and business class travel. This wish These funds included the purchase of Boeing 787 Dreamlin- also did not find favour in the Finance Minister’s budget pro- ers. This amount has now been slashed to Rs 5,786 crore by posals. the Finance Ministry, a 40 per cent cut in the budget plan out- The print and electronic media as well as the stock and mu- lay for the public sector airlines. One piece of good news ap- tual fund market are reverberating with the buzzword ‘infra- pears to be the exemption of duty from the Cold Chain facilities structure’. The Airports Authority of India (AAI) has proposed above two tonne refrigeration capacity and utilising 50 KW and an outlay of Rs 12,434 crore during the ongoing Eleventh Plan above of power. The term “Cold Chain” describes the network period ending FY 2011-2012, for the development of airport for procurement, warehousing, transportation and retailing of infrastructure around the country. The objective is to provide food products under controlled temperatures. On board cater- world class infrastructure facilities and promote safe, reliable ing uses cold chain facilities and this step may come as a small air services. The section of the Finance Minister’s speech on mercy to the industry. infrastructure did not feature the word ‘aviation’ - a cause for Finally, there is an overall aspect that needs to be addressed. some misgiving in the aviation industry. Many observers feel The direct taxation proposals of the budget would benefit one that proposed infrastructure expenditure by the government crore individual tax payers. The general push of the budget is has not been given adequate attention. towards giving consumption an upward thrust through the Anomalously, the investment plan for AAI has increased simple expedient of leaving more money in the hands of the from Rs 1,961 crore in the last FY to Rs 3,377 crore in the next common man. The 2 to 4 per cent cut in excise duties and the one - an increase of 72 per cent while on infrastructure, the re- 5 to 10 per cent increase in disposable incomes for individuals duction in basic customs duty on project imports has been re- with taxable incomes of Rs 5 lakh and below will both contrib- duced from 7.5 to 5 per cent. This would be a positive boost to ute to boost consumption. The aviation industry could fondly imports for projects related to airport development. AAI plans hope that some of the incremental spending capacity would to improve infrastructure are laudable and necessitated by the go towards increased air travel and provide cause for cheer to growth of aviation in the country. More attention to this cry- the industry. SP

Inaugural Issue • 2008 • SP’S • 15 INFRASTRUCTURE / MAINTENANCE

MRO in India

The number of civilian aircraft has gone up dramatically in the last five years. The year 2003 was a benchmark for Indian civil aviation. Where there were only four major scheduled Spreading Awareness: Bombardier’s Challenger is frequently seen on the ramps operators at the of airports in the Middle East and fdlf dk fdfdlfdklfdfdkldkfdfdklfdﬂdfdﬂfdlfdlfdf beginning of 2003, deoeoe eeeoeore two each in the public

and private sectors, the number went up to 11 by mid-2007. PHOTOGRAPH: DASSAULT

By R. Srinivasan Coimbatore

HERE IS AN INCREASING NEED for Mainte- two each in the public and private sectors, the number went up to nance, Repair and Overhaul (MRO) facilities in 11 by mid 2007. Of these, Indus Airways closed down a few months India. The number of civilian aircraft has gone after launch. With a number of Mergers and Acquisitions (M&A) up dramatically in the last five years. The year witnessed in 2007, the ten scheduled airlines are now operating 2003 was a benchmark for Indian Civil Aviation. as seven entities. However, there is no reduction in the total fleet Where there were only four major scheduled op- strength as a result of the M&A. On the contrary, airlines continue Terators in the country at the beginning of 2003, to induct aircraft at the rate of five to six per month. 16 • SP’S • Inaugural Issue • 2008 INFRASTRUCTURE / MAINTENANCE

By early 2003, the four scheduled airlines operated just over Engineering and Maintenance Department in 1994. However, un- 100 commercial aircraft on domestic and international routes. like the national carriers, Jet Airways did not have its own dedi- Today, there are over 325 commercial airliners criss-crossing the cated hangar. Hangar space was therefore leased from HAL at Indian skies – three times the number just five years ago. Besides, Bengaluru for major maintenance work. Jet Airways also estab- the airlines have government sanction to import another 72 air- lished `night bases` for maintenance of its aircraft in Mumbai, craft within the next 12 months. This rate of induction, driven pri- Delhi, Chennai and Kolkata. In the initial years, the focus was marily by the growth in demand, is likely to be sustained, trebling more on stabilizing operations and less on the establishment of the fleet from its current level of holdings by the end of the next elaborate MRO facilities. This belief was rooted probably in the decade. A bulk of the aircraft inducted is from one of two major fact that the aircraft were relatively `young`. aircraft manufacturers – Boeing or Airbus. Others include ATRs The Deccan and Kingfisher combine has an arrangement from Europe, Embraers from Brazil and CRJs from Canada. with GAMCO, Abu Dhabi for MRO facilities. Last year, two air- Driven by the economic boom of the 21st century, Business craft from Deccan underwent major servicing at Abu Dhabi. In Aviation has also thrived. From a mere 50 aircraft at the turn of the long term, Kingfisher plans to establish MRO facility in India, the century in the non-scheduled operators’ category, the fleet either at Bengaluru or Delhi. strength now stands at over 200 with several more on order. This Many of the recently established airlines are classified as Low is despite impediments such as paucity of parking space at met- Cost Carriers (LCC). One of the major differences between the ros where demand is high and crushing burden of import duty Full Service Airlines (FSA) and the LCC is that the business model on privately owned aircraft imposed by the budget for financial of the latter is structured on the basis of its aircraft flying more year 2007-08. hours per day to obtain better utilization rate and thereby offset Apart from the scheduled and non-scheduled operators, some of the costs. While aircraft of the FSA fly about nine hours in there are around 40 flying-training establishments in the country. a 24-hour cycle on domestic routes, those of the LCC fly up to 13 Majority of these have been non-functional. However, there is a hours. With more passengers coming into the air-travel domain, determined effort on the part of the government to revive these as it is, all airlines are flying their aircraft to the maximum extent institutions as also to establish around 20 new schools to cope possible every day – which means increase in trip cycles. This im- with the rising demand for pilots over the next two decades. Alto- plies higher demand for daily maintenance to ensure availability gether, the flying training schools will have a fleet of around 300 of the aircraft the following day. Also, frequency of the periodical trainer aircraft. And finally the helicopter fleet is also growing and maintenance schedule is increased considerably. is expected to reach 500 by 2015. About one-fourth of the maintenance activity on any aircraft All aircraft operations and more so those that lie in the com- is Line Maintenance which includes daily servicing and lay-over mercial segment are mainte- servicing. This is accom- nance–intensive. Unfortunate- plished by the AME-quali- ly, expansion of MRO facilities fied line engineers on the within the country has not ‡ As of now, aircraft belonging payroll of the airlines. The kept pace with the explosive rest is special maintenance growth in the civil aviation sec- to the smaller private airlines or including periodic mainte- tor. Therefore, will investing in nance like Check A and B or an MRO facility in India be a to Business Aviation companies Major Maintenance C and profitable venture and a smart that cannot find MRO facility in D, repair or replacement move? Let us see. of parts or modifications. Approximately 70 per cent India, have to fly out either to These are undertaken when- of the jet commercial aircraft the Middle East or to Singapore ever the life of a component were held on the inventory of expires or the component is the national carriers, Air In- for major checks and overhauls. damaged necessitating pre- dia and Indian. These two air- mature replacement, and lines had engineering bases in when a planned inspection Mumbai, Delhi, Kolkata and is required to be carried out. Hyderabad to cater to MRO requirements in respect of their air- The engines of the aircraft take about one-third of the time for craft. In fact, one of the first jet engine overhaul workshops was maintenance activity - at times they may have to be replaced. established by Air India in Mumbai in 1963. The management of This work is usually undertaken by a recognized MRO organiza- these airlines had realized at that time, the importance of a good tion – unless the airlines have an in-house facility to undertake engineering department for proper maintenance of aircraft. Apart this activity themselves. from these two public sector airlines, the Hindustan Aeronautics The advantage of outsourcing to an MRO is beneficial to the Limited (HAL) under the Ministry of Defence was responsible for mid-size fleet which generally has about 40 single type aircraft. the maintenance of the aircraft in the armed and para-military The MRO Company has qualified personnel including structural forces. Being a government-owned establishment, HAL also as- engineers to undertake the entire spectrum of tasks. The MRO sisted the public sector airlines with their know-how in structural pool-site stocks reserves of spares, which includes engines for modifications and avionics. Today, Air India, the sole public sector replacement. It can provide timely services and components for airline has skilled and trained manpower to cater to the demands heavy maintenance at competitive prices. This is in consonance of their growing fleet – a good harvest after they sowed the seeds with the LCC philosophy of saving costs wherever possible. The for a sound engineering backup several years ago. MRO organization success is measured by the number of custom- Jet Airways began its operations in 1993 and established its ers it is patronized by.

Inaugural Issue • 2008 • SP’S • 17 INFRASTRUCTURE / MAINTENANCE

maintenance bays and hangars in their master plan and MRO companies can acquire space to build their own facility. Boe- ing has announced its intention to set up an MRO facility jointly with Air India, probably in Nagpur. Airbus is also mulling over an MRO investment in India. Af- ter all, the MRO is an extension of the Original Equip- ment Manufactur- er (OEM). Apart from the major aircraft manufacturing companies, independent MRO companies abroad have also evinced interest in the potential market in India especially for the growing fleet of Business INDUSTRY BENCHMARKS: Aviation aircraft, Standards maintained by companies helicopters and such as Lufthansa Technik, Singapore trainer aircraft. Technologies Aerospace can be taken At present there as role models by Indian players are just a handful of companies such as Indamer and Air Work India at Mum- Only the older established bai and Taneja Aerospace and airlines – Air India and Jet Air- ‡ Today, there are over Varman Aviation at Bengaluru ways have authorized main- who maintain smaller aircraft. tenance facilities for periodic 325 commercial airliners As of now, aircraft belonging checks and repairs. They have to the smaller private airlines or their own hangar space with criss-crossing the Indian to Business Aviation companies all the added facilities at major skies – three times the that cannot find MRO facility airports like Mumbai and Delhi. in India, have to fly out either These two airlines have quali- number just five years ago. to the Middle East or to Singa- fied technical manpower for pore for major checks and over- maintenance tasks. Occasional- hauls. This entails considerable ly in the absence of a particular financial burden apart from the expertise, either suitable manpower is temporarily hired from pressure on time and effort. Then there is also the question of abroad or the work outsourced to a recognized MRO. maintaining quality standards. The growing trainer and heli- The new airline entrants would, in all likelihood, have to re- copter fleets will further generate demand for growth of MRO sort to outsourcing to an established MRO. This is due to the large facilities in the years to come. upfront capital investments needed to own such facility as well as In the present MRO scenario, the existing facilities are clear- hangar space requirements at major airports especially the met- ly inadequate and the pace of development of such facilities is ros. Real estate at these airports is usually not available. The new tardy. As for business potential in this segment of the aviation Greenfield airports at Hyderabad and Bengaluru have included industry, the sky is the limit! SP

18 • SP’S • Inaugural Issue • 2008 ENVIRONMENT / INITIATIVES

Boeing and Airbus Join Forces to Improve Aviation’s Environmental Performance

“Airbus and Boeing are great competitors, and this has been a critical element that has sharpened our focus and efforts “I am convinced technology and innovation toward making aviation more efficient,” hold the key to reducing aviation’s environ- Scott Carson, Boeing Commercial mental impact and increasing eco-efficiency,” Airplanes president & CEO Tom Enders, Airbus president & CEO

OEING AND AIRBUS HAVE SIGNED an agree- • IN THE LAST 40 YEARS, THE AVIATION INDUSTRY has ment to work together to ensure global interop- made significant improvements in aircraft efficiency with reduc- erability in air traffic management as part of an tions of 70 percent in CO2, 90 percent in noise and 90 percent less effort to help reduce the impact of aviation on unburned hydrocarbons. The Advisory Council for Aeronautics Re- the environment. The companies will seek the search in Europe (ACARE) targets reductions of 50 percent in CO2 acceleration of improvements to the world’s air and 80 percent in NOx by 2020. A modernized air traffic management transportation management system in order to system will be a key contributor to reaching this goal. increase efficiency and eliminate traffic congestion. BScott Carson, Boeing Commercial Airplanes president and • IMPROVEMENTS TO THE GLOBAL AIR TRANSPORTA- CEO, and Tom Enders, Airbus president and CEO, signed the TION SYSTEM that provide more efficient routing, better arrival agreement between the two industry leaders at the sidelines of management and speed control will reduce inefficient delays and the third Aviation and Environmental Summit in Geneva. time in the air, which will save fuel and reduce emissions. Such air “Airbus and Boeing are great competitors, and this has been traffic management improvements represent the greatest short-term a critical element that has sharpened our focus and efforts to- opportunities to reduce CO2 emissions. n ward making aviation more efficient,” Carson said. “While our ap- proaches often differ, we are working towards the same goal – to reduce aviation’s environmental impact.” the aviation sector and governments choose the most direct “I am convinced technology and innovation hold the key to path to a modernized air traffic management system is part of reducing aviation’s environmental impact and increasing eco-ef- a three-pronged approach to help improve the environmental ficiency,” Enders said. “And competition is a great motivator for performance of aviation. The other two prongs are competition, this. Where Boeing and Airbus share a common position on the which is critical for environmental and technological advances environment and safety, it is in all our interests that we cooperate that result in new aircraft programs such as the Airbus A380 and to achieve our common goals more quickly.” Boeing 787, and support for industry alignment on environmental The initiative by Airbus and Boeing to work together to help positions where appropriate. SP

Inaugural Issue • 2008 • SP’S • 19 Viewpoint

Emerging Role of General Aviation

Many countries in the world have recognized the tremendous economic impact General Aviation can create through minimal investment in infrastructure. Hence the saying, “A mile of roadway gets you a mile further… A mile of runway gets you everywhere.” PHOTOGRAPH: WIKIPEDIA

By Dr Ram Pattisapu, Bangalore President, Aircraft Owners and Pilots Association - India Chapter

ENERAL AVIATION OR GA IS defined by the not personal, business or recreational flying. International Civil Aviation Organisation (ICAO) Looking at the rapid economic growth in India in recent years, as, “All civil aviation operations other than sched- it has become readily apparent that such growth cannot be sus- uled air services tained without adequate infrastruc- and non-sched- ture. Most of this infrastructure is uled air trans- viewed in purely “structural” terms port operations such as roads, airports, buildings for remuneration or hire.” ‡ “A healthy GA and power stations. Many countries GIndia has had a long history in the world have recognized the tre- of aviation. Although limited in infrastructure mendous economic impact General scope, when compared to military holds the key to Aviation can create through minimal aviation, there is sufficient infra- investment in infrastructure. Hence structure for civil air operations. economic success in a the saying, “A mile of roadway gets Unfortunately, aviation in India is developing country.” you a mile further…A mile of runway often associated with airlines and gets you everywhere.”

20 • SP’S • Inaugural Issue • 2008 With over 75 per cent of our people living in rural settings freedom while improving safety and security through the fram- and much economic development occurring in the non-ur- ing of sensible laws. ban areas, the existing infrastructure of poor roadways and rail India enjoys the benefits of being the largest democracy routes cannot continue to support economic growth. GA is the in the world. However we are yet to enjoy the freedom to fly ideal solution to connect the urban centers with rural opera- across this magnificent land. Let us join forces and help build tions. Runways, even as short as one km, which allow landing this nation’s General Aviation forces, which are as important of corporate aircraft, may be built to increase the efficiency of to our economy as the air forces are to its political future. business operations. While the annual membership fees of AOPA-India is Rs Rural air ambulance services can ferry critically ill patients to 2500 ($63), the organisation supports national as well as in- larger cities. Politicians can meet with their constituents. Photo ternational activities and offers members excellent benefits reconnaissance, police work, aerial surveys and advertising, ag- including a widely-read AOPA-Pilot or AOPA-Flight Training ricultural crop spraying and speedy transportation of goods to magazine, complete web access for members with a massive shops from the fields–these are some of the critical operations library of information on virtually every aspect of aviation. The where GA pilots can help India in its quest to move forward in benefits of being able to network with other Indian or interna- the world. tional pilots through this fellowship are priceless. Majority of the growth in Indian aviation has been limited There is great excitement in the air! The freedom to fly our to airlines. Such growth has resulted in acute shortage of pilots, country’s magnificent skies is finally here and we must pre- aeronautical engineers and aircraft technicians in India. Howev- serve this privilege for all present and future generations. er, there has been little emphasis After many false starts, it on General Aviation, the source is apparent that Indian skies of all pilot training in the world. have opened up but as many A healthy GA infrastructure is wise aviators will realize, the key to economic success in ‡ “If there was ever a time along with this opportunity a developing country. arise equal potential for prob- AOPA-India is one of 64 to utilise GA to build up lems. With all of the talent, members of the International businesses or help them experience and knowledge in Council of Aircraft Owners the field combined with the and Pilots Associations. With grow, this is it.” passion for flight, we have the only a few thousand pilots and duty and the right to mould a few hundred aircraft, India is the character of aviation ac- lagging far behind even such tivities in India. small countries as Kenya or The masses have to be ed- New Zealand. In the past, such numbers may have been ad- ucated that aviation does not always mean airliners. Smaller, equate as India was considered a “third-world” country, and more nimble and efficient aircraft can contribute more than its bureaucracy kept its aviation systems in complete check. In major airlines in promoting economic development in rural comparison, the USA has over 500,000 pilots with over 250,000 India. The prejudice against small aircraft must be eliminated aircraft and 19,000 airports. With such massive numbers, the and the overzealous bureaucracy, that has suppressed Gen- country enjoys billions of dollars of economic benefit from GA eral Aviation for so many years, must be re-oriented. We must activities each year. show our combined capacity to utilise GA, in heretofore un- Now with the economic boom, industries and businesses heard of ways - not only in flight training but also in business need rapid and timely initiatives. Given the size of its popula- aviation, medical services, surveys, aerial advertising, agricul- tion and landmass, India simply cannot continue with its old tural spraying and tourism. If there was ever a time to utilise ways. New directions in GA must be developed to allow Indian GA to build up businesses or help them grow, this is it. If you citizens and businessmen to move about quickly using aircraft can find a solution that uses GA, please promote it, educate for personal and business purposes. Air regulations are being your superiors about it, and talk about it with your friends, eased to promote flight training. With an organized approach family, neighbours and colleagues. Display your passion for fly- the government may be able to bring about the much required ing openly and publicly. change. Most importantly, please join AOPA-India and ask your Most air regulations in India have been formulated five or friends to join in too. Learn all you can about flying on the six decades ago by career bureaucrats with no experience in dedicated website, read the complimentary AOPA Pilot or aviation. These regulations have been extremely difficult to the Flight Training magazine, enjoy the benefits such as pro- change, as very few people with aviation knowledge are in- motional offers and discounts and join the fellowship of over volved in the regulatory framework of the government. We, as 600,000 General Aviation pilots worldwide. pilots and aviation-savvy community,must help educate the We have amassed tremendous political power with major rule makers and enable them to understand the obstructive governments to preserve the freedom to fly. We have educated nature of rules and eliminate the barriers to GA. The economic pilots and public on the benefits of General Aviation around future of our country depends on this. the world and we can bring that influence to help us define The combined voice of 600,000 pilots and aircraft owners and defend sound aviation policies in India. We must take the have made an impact worldwide. These concerned and active lead and be actively involved in making the skies safe, fun and individuals as well as organizations can point out the many free for all Indians. age-old rules and how regulations can be modified to allow Wishing you blue skies and happy landings! SP

Inaugural Issue • 2008 • SP’S • 21 OPERATIONS / BUSINESS AVIATION Business Aviation & CORPORATES

Understandably, Business Aviation has evolved under the influence of two driving forces - the need for speedy executive travel to save expensive time as well as the need to maintain a status symbol. PHOTOGRAPH: BOMBARDIER

By Group Captain A.K. Sachdev Bangalore

USINESS AVIATION IN THE US evolved as a In India, Business Aviation was understandably slower in result of post World War II economic boom and coming. This was not unusual for a nation struggling to over- the need for speedy response to business needs. throw the strangulating yoke of colonialism. That is not to say However, the piston and turboprop engine air- that businessmen were not enthusiastic about or did not under- craft that served the needs of Business Aviation stand the importance of aviation. Indeed, the redoubtable father were essentially for military purposes but later of the Indian aviation industry - JRD Tata had shown characteris- modified for business travel. It was nearly half a tic foresight and vision in linking business and aviation by becom- century ago that the first business jet, the Lockheed JetStar, made ing the first Indian to hold a private flying license and establish- Bits maiden flight, thus heralding a new era in Business Aviation. ing Tata Airlines, which through several stages of metamorphosis,

22 • SP’S • Inaugural Issue • 2008 OPERATIONS / BUSINESS AVIATION

STIFF COMPETITION: The business aviation scenario will witness intense competition. Companies such as Dassault Falcon, Cessna, Hawker, Gulfstream, Embraer, Bombardier are coming up with PHOTOGRAPH: HAWKER various programmes

has completed more than seven decades in Indian aviation and is so on already own aircraft including jets such as Falcon, Hawker, now known as Air India. Cessna, Bombardier, Beech King and Gulfstream. The Oberoi Understandably, Business Aviation has evolved under the in- group has a presence in the aviation scene not just as the owner fluence of two driving forces - the need for speedy executive travel of private aircraft but also in the business of airline catering - an to save expensive time as well as the need to maintain a status important aviation related commercial activity. Even the Low symbol. Cost or Low Fare Carriers need onboard catering for the crew, Although accurate statistics about the actual use of Business retailing to customers and bottled water - a must for every airline, Aviation assets by top management of their respective owners for whether gratis or at a price. genuine business reasons would be hard to come by, a rough es- There are a large number of air charter companies that pro- timate is that less than half the vide quick but expensive flying effort available is used for business travel. TajAir, a Tata conveying important person- venture, has aircraft available ages to crucial meetings thus ‡ The affluence of business for hire. Interestingly, the Tata saving valuable time. The rest is group has maintained a low spent on travel by family, friends houses that permitted profile on the aviation scene and important private or com- after their frustrating experi- pany guests, Increasingly, spare indulgence in private ence with airfield projects effort is being retailed to willing aircraft, when analogously in India. Perhaps Tata group’s customers who do not represent petulance is understandable business competition. While the extended further, encourages but their withdrawal from use of an aircraft for actual busi- entrepreneurship in the form the scene is a loss to aviation ness purposes represents the Indian aviation industry. commercial sense of exploiting of commercial airlines. The Business Aviation its flexibility, convenience and scene is all set to go abuzz speed, the other equally impor- with the Very Light Jet (VLJ) tant reason is that private air- class of aircraft, with a capac- craft, exclusive and expensive as they are, constitute perfect ob- ity of six including crew and a rather attractive time to run be- jects of desire and ideal to flaunt. tween airports. The VLJ also represents a lowered price for unit One estimate has it that there are at least 10,000 entities in In- cost of aircraft. A Cessna Mustang is only $1.5 million (Rs 6 crore). dia who can afford at least one business aircraft. A large number No wonder the waiting list for orders is overdrawn till 2012 and of Indian corporate houses including Reliance Industries, Video- a place in the queue can be bought for $300,000 (Rs 1.2 crore)! In con, UB Group, Raymond, GMR, Bharat Hotels, Tata, Oberoi and spite of its limitations in terms of onboard navigation and other

Inaugural Issue • 2008 • SP’S • 23 OPERATIONS / BUSINESS AVIATION

facilities, the VLJ is still keeping the interest going and the tills ning the popular Kingfisher Airlines. All planes from his earlier ticking. The coming years will show how many actually get in- venture have found a place in his corporate fleet. His non-sched- ducted into the fleet and contribute to the Indian Business Avia- uled or private fleet of aircraft comprises an Airbus 320, a Boe- tion scene. ing 727, a Gulfstream and an HS125. Mallya is not the only one. Even without the VLJ entering the fray in a big way, there There are about 150 planes that belong to companies under the are corporate sector players entering the air charter business by non-scheduled category, according to Kapil Kaul, CEO - Centre chasing opportunities in the ongoing commercial aviation boom. for Asia Pacific Aviation (India). Some of them are Raymond, Mesco, Sahara and Jindal Steel and Then there is the cargo carrier aspect where aviation provides Power, which have applied for charter service license from the the means for horizontal expansion of business. AFL, a well-es- DGCA. Similarly, the Mumbai-based CitiGroup with interests in tablished Mumbai-based cargo and courier company, has decided banking, transportation and real estate has outlined plans to op- to venture into the aviation business with the launch of its cargo erate a charter service called City Airlines. The company has already purchased two aircraft - a six-seat Beechcraft 90B and an eight-seat jet engine Cessna Bra- vo. It plans to own a fleet of 15 aircraft in three years as an extension of its City Limousine services, which have a good track record in India. The aviation aspect was just an extension of the analogy of good business. The company’s charter service is expected to target High-Net- Worth Individuals , corporate execu- tives, Bollywood personalities and expatriates who SHAPE OF BUSINESS AVIATION

PHOTOGRAPH: CESSNA prefer privacy TO COME: In India, the inﬂow of a varied while travelling. range of jets will also include VLJs in the City Airlines has coming times earmarked Rs 200 crore to expand this business. carrier - Quikjet Airlines, which is waiting to commence op- Fractional ownership erations from Bangalore. solutions also present another option. An example is Forum 1, a To summarise, Business Aviation and commercial aviation true blood fractional ownership grouping formed by Hero Honda, appear to be intertwined in a manner that does not appear to Airtel, Jubilant Enpro, DSCN (Sriram Group), Max Pharma, Dabur permit one to exist without the other. Any business house which and GMMCO (Birla Group). has had the wherewithal to start an airline, would like to do so The increasing affluence of the business houses coupled with and there are many. Indeed, with the exception of government- greater entrepreneunial drive is not only encouraging business owned airlines, all others have been brought to the fore by a busi- aviation to grow but also to sprout bigger commercial ambitions. ness house. On the other hand, the business houses that have had This rationale is manifest in the setting up of new airlines in the private business aircraft at their disposal but have not ventured present phase of liberalisation in India. The setting up of King- into the larger playing field of commercial aviation have been fisher by Vijay Mallya and GoAir by the Wadia group are but two constrained by other factors. The umbilical relationship that ex- manifestations, there being several other such endeavours seek- ists between commercial aviation and corporate houses is extant ing to capitalise on the aviation boom. Vijay Mallya started UB Air and likely to continue. The extent of this mutually interdependent in 1990 but when regulations demanded that UB operate as an relationship would be decided by the manner in which the Indian air-taxi service, he backed out. Today, he is back in business run- aviation scene evolves in the next few years. SP

24 • SP’S • Inaugural Issue • 2008 OPERATIONS / BUSINESS AVIATION OPERATIONS / BUSINESS AVIATION

Charter your way into the

PHOTOGRAPHS: CESSNA future!

Judging by the transformation in communication systems as well as aviation technology in the last decade or so, with the economy on a high growth trajectory and the number of millionaires steadily increasing, it is only a question of time before Air Charter Services come into their own.

By Group Captain Joseph Noronha Goa

SHOK’S EIGHTY YEAR-OLD MOTHER- And so it comes about that the family, having risen at a fairly IN-LAW, WHO lives in Mumbai, has one wish decent time, proceed to the airport. The Eclipse is all set for them before she dies. She wants to visit Tirupati. and minutes later they are airborne. At Tirupati, the old lady en- However, she is of uncertain health. The strain dures the darshan formalities with good grace and they are able of driving to distant Santa Cruz airport through to complete their pilgrimage a couple of hours earlier than an- rush hour traffic and waiting in interminable ticipated. A quick call to the pilot ensures that the plane is ready queues, besides the change of flight at Hyder- for the return journey by the time they reach the airport. By early abad, could well push her over the edge. On the recommendation evening they are safely back home. Aof a friend, Ashok and his wife decide to consult an air charter This, in essence, sums up what charter flights are all about. Air operator. The friendly executive at the other end has just the thing charter services are distinct from the scheduled commercial airline - a four seater Eclipse 500 Very Light Jet (VLJ) to fly the old lady industry. They offer custom-planned transportation of passengers in comfort. The trip is planned so as to permit return the same and goods. They follow a flexible schedule and therefore, are free of evening. The couple decide to make it a family trip with their fif- most of the hassles that the regular airlines are subject to. teen-year-old daughter as the fourth passenger. They flinch a bit Some of the advantages of air charter services over scheduled at the price quoted but ultimately decide it is worth forking out a flights can be stated as under: little extra to fulfil a loved one’s last request. • Choice of Airports and Schedules. One can say adieu to the

Inaugural Issue • 2008 • SP’S • 25 OPERATIONS / BUSINESS AVIATION

tyranny of unearthly reporting times and three separate ter service later said, “It was interesting to watch the plane taxi hops to travel 1500 km. A charter flight can take you from across the ramp. There were more dogs looking out the windows the origin to the destination of choice at a convenient time than people!” on a chosen date. No more worries over flight delays and With so many diverse operators in the business, information missed connections. A charter can provide the assurance of about availability of air charter services is the key factor. Sabre delivering you or your load as promised. Business Aviator and Worldspan are two contemporary informa- • No More Queues. A major advantage is the liberation from tion systems that bring private and corporate aircraft into a com- check-in queues, crowded terminals and endless wait for bined booking arrangement to help make the air charter utilisa- everything. The ease and convenience inherent in air char- tion process swift and smooth. ter services are unmatched. Similarly, Air Charter Guide - -which claims to be the Ameri- • Company of Choice. A common experience on a scheduled can air charter industry’s leading online information source and airline is travelling with 200 perfect strangers and not ex- Air Charter Team, provide air charter information services that changing a word with anyone. A charter flight usually en- enable prospective clients to compare offers from hundreds of sures you are with people you know - on a company trip, charter operators with regular scheduled flights. In an emergency, your own colleagues or on a holiday, with family and friends. such charter broker services prove to be invaluable in enabling An in-flight business meeting can be planned or the finish- clients to secure the precise aviation resources needed for the ing touches can be added to an important presentation that specific requirement. needs to be made soon after arrival at destination. In India, air charter services are still at a nascent stage. • Cost Effectiveness. It is a common misconception that air Therefore, like so many other elements in this ‘Johnnie-come- charters are prohibitively expensive. On the contrary, it lately’ economy, there is only one way to proceed in the foresee- is often possible to charter a plane with just the requisite able future - forward. Judging by the transformation in com- number of seats. Consequently the cost per passenger could munication systems as well as aviation technology in the last work out to not much more than the regular business class decade or so, with the economy on a high growth trajectory fare. The time and money saved through all the formalities and the number of millionaires steadily increasing, it is only a - booking, ground transit and waiting period - are not in- question of time before Air Charter Services come into their considerable. There may be further savings on the cost of own. According to the Directorate General of Civil Aviation, accommodation through the elimination of transit halts. there are about 200 Business Aircraft and 25 jets in operation • Comfort. Another misconception is that charter flights now. There are more than 120 registered helicopters and the have Spartan facilities. This is probably born out of TV im- number of private aircraft is expected to increase exponentially ages of hordes of cut-rate tourists being deposited at budget to over 500 by 2012. destinations. However, most charter operators offer person- Club One Air - India’s first fractional aircraft ownership com- alized service and greater comfort than scheduled airlines. pany and perhaps its largest air charter service operator - recently • Security and Privacy. No more lost baggage. No more intru- acquired ten Eclipse 500 VLJs for its soon to be launched dedicat- sive security checks. After being subjected to minimal for- ed air charter service. This service will not be directed at the rich malities, just step on to the plane and go! but will cater to the needs of business travellers and the general It is no wonder then, that there are perhaps 8000 charter air- public who can afford it. The Eclipse 500’s low acquisition and craft managed by around 2500 companies currently operating in operating costs make it suitable for a wide clientele. It requires a the USA. Their combined annual revenue is approximately $8 bil- short field length (1000 m) and minimal support facilities which lion (Rs 31,944 crore). Many of these services are so popular that should enable operation from most Indian airfields, if they are they regularly carry more passengers than small regional airlines. suitably developed. This is a big advantage, considering that there While scheduled flights are restricted to about 700 commercial are only about 450 airstrips in the country at present and not too airports, charter flights can choose from over 5000 general avia- many more are likely to be built due to paucity of land. tion airports. This gives us an idea of the comparative ease of ac- Air Charters India, a part of the STIC Travel Group and In- cess to American charter services. Passenger travel accounts for ternational Air Charters are two examples of air charter service approximately two thirds of the revenue and freight one sixth. A providers. They act as bridges between the actual operators and wide variety of tasks - crop spraying, advertising, survey, photog- potential clients. For air charter services in India to really take raphy - are routine. There are unique tasks as well such as deliv- off a reduction in costs is essential. With increased business ering emergency fire fighters, providing oil well capping teams, as well as competition likely to materialise in the near future, extricating key personnel from a tricky political situation or even costs should decline considerably. The downside of an other- a hostage swap. wise bright outlook is the relatively unregulated nature of the A dog breeder in Oregon, USA contacted Superior Air Char- air charter market. ter with one unusual request. He needed to transport seven large Though air charter services do come under the Director Gen- Shiloh Shepherds to Las Vegas in a hurry. A long journey by road eral of Civil Aviation (DGCA), they are governed by a different, would have been tough on the refined animals. There were no somewhat less stringent part of the Civil Aviation Requirement convenient scheduled flights. Besides the airlines might have in- as compared to scheduled flights. Scheduled services are consisted on sedating the dogs, which the breeder was dead against. stantly in the limelight and the slightest slip is reported, even Could Superior help? It certainly could! magnified. Air charter services may succumb to the temptation A Learjet 25 was earmarked. The seats in the main cabin were to cut maintenance costs or hire less-than-suitable crew. The covered with protective cloth and the dogs were comfortably regulatory authorities would do well to be vigilant especially in housed. Within 90 minutes the animals were safely delivered at the phase of rapid expansion that is likely to ensue with the rap- Las Vegas, none the worse for the journey. An official of the char- idly expanding economy. SP

26 • SP’S • Inaugural Issue • 2008 TECHNOLOGY / TRAINING Flight Simulators Future bright or lost opportunity? PHOTOGRAPH: FLY IT PHOTOGRAPH: FLY

Remarkable developments in computing and display technology have combined to make the simulator almost “more real than real” and it is now unthinkable to have a modern aircraft without a simulator to train its crew. The Flight Simulator has now become a vital and indispensable component of aviation training.

By Group Captain Arvind Oak Chennai

HE WRIGHT BROTHERS WOULD BE Simulator has now become a vital and indispensable compo- hugely surprised at the shape their creation nent of aviation training. has metamorphosed into in just a century. Modern commercial aircraft are expensive to operate and And even more to see that much of the chal- too unaffordable to be exclusively used for pilot training. At lenging part of training required to fly a com- the same time, increasingly complex aircraft systems as well plex commercial aircraft today is carried out as the operating environment demand higher levels of train- T on the ground and not in the air. The Flight ing and proficiency. Also, there is enhanced focus on safety and Inaugural Issue • 2008 • SP’S • 27 TECHNOLOGY / TRAINING efficiency which are sought to be achieved through stringent modern aircraft without a simulator to train its crew. legislative measures. There is an important factor in making the characteristics of The Flight Simulator helps meet all these requirements ef- the real aircraft and the simulator converge. Modern technol- fectively and at a substantially lower cost. Today there are au- ogy has not only made simulation very realistic, it also changed thoritative guidelines on the quantum of mandatory simulator the aircraft and simulator flight characteristics to increasingly training, type of simulators required and the range of exercises resemble each other. With fly-by-wire controls and glass cock- trainee pilots must undergo. pits, the real aircraft and the simulator both respond in the A new milestone was crossed sometime in the last decade same way because they are driven by the same control laws. with the concept of “Zero Flight Time Training”. A licensed and For this reason, simulation is more realistic as well as less ex- experienced commercial pilot, on completion of the prescribed pensive today. This makes for a remarkable synergy between quantum of simulator training, can step into the cockpit of a the cost-driven necessity for minimizing training hours on air- passenger aircraft as a crew member carrying passengers for craft and the regulatory need for training that is both reliable his very first flight on the type! This was unthinkable twenty and capable of demonstrated effectiveness. This is what makes years ago and even now pilots of the “old school” are worried the MPL, Zero Flight Time Training and other developments about this. Further jolts to this mindset are in the offing. In not only logical but inevitable. After all, a Space Shuttle Com- case the new Multi-crew Pilot’s License (MPL) concept is im- mander lands his spacecraft at the end of a mission with zero plemented, a young and inexperienced co-pilot would have flight time training! Of course, without fare paying passengers! flown a drastically reduced syllabus on any aircraft, not just on Simulation is the zero-risk part of aviation. A simulator the Commercial Transport type., That such a situation is being crash bruises only the ego. Simulator components are not as discussed at all is a tribute to the distance covered by aviation expensive as those of the corresponding aircraft. Sometimes related Simulation Technology in the last few years. even of better technology, simulator components do not have to fulfill airworthiness norms mandatory for aircraft compo- DEVELOPMENT OF nents. For its vast array of elec- SIMULATORS tronic capabilities, the Airbus Initially, flight simulators 320 uses processors which are were crude devices which ‡ A current example of a relatively older, but extremely can be best described as robust and reliable. An Airbus “mock ups”. The first formal simulator manufactured in simulator on the other hand, “trainer” type of simulator India exists in Pune. A private uses relatively more advanced was the Link Trainer, which processors. was widely used to train foundation owns and operates a Indian strength in software military pilots during the fixed base simulator which can and fabrication could turn out Second World War. The Link to be an immense driver for Trainer made significant provide generic glass-cockpit small scale entrepreneurs to contribution in reducing ac- foray into this high technology cident rate and proved to be simulation for the twin-jet regime. Some types of simula- an effective flying training medium category aircraft. tors are already being manu- tool. But simulators don’t factured in India. The quality crash and there was a vast of simulation is excellent and difference between the real fields such as driving training, aircraft environment and the simulator. This created the mind- weapon firing and ship operation have benefited immensely at set that “it’s only a simulator”. a fraction of the cost of acquisition from foreign sources. Increasing complexity and cost of operation of commercial aircraft have steadily driven the growth of simulation technolo- TECHNOLOGICAL COMPETENCE vs gy. Over the years, there emerged a profusion of “devices” which BUSINESS OPPORTUNITY have now been formalised into two categories - Fixed Base Sim- Typically, a simulator customer wants a product demonstra- ulators Levels 1 to 7 and Motion Based Simulators Levels A to tion on `No Cost`, No Commitment` basis. A small vendor can D. There are also “Part Task Trainers”, which focus on isolated hardly afford to design and build a high end simulator on the systems of complex aircraft. Progressing from Level 1 through off-chance that he might be able to sell only a couple of pieces if to 7, Fixed Base Simulators bring the trainee to the stage of Full selected. The volumes available in the domestic market are just Flight Simulators, which have the complex and expensive addi- not large enough to justify investment. Low volume is also the tion of Motion. It is important to note that the visual medium reason why established vendors would only deliver a “finished” is such a powerful aspect of human orientation that it provides product from a standard line being sold all over the world, while a remarkably high degree of realism in training even without local industry would produce a new, precisely tailored design. being supplemented by motion. From Level A to D, increasingly The constant and enormous refinement in hardware, soft- sophisticated motion platforms combined with aural and tac- ware and decreasing costs are familiar to everyone who uses a tile cues, transform the simulator into the “real thing” to such cell-phone. Due to this, simulators made in India could often an extent, that it is actually more pertinent to training than the use the latest high-end technology, not being based on legacy “real” aircraft! Remarkable developments in computing and hardware and software. They could be made available at lower display technology have combined to make the simulator al- cost than the foreign product while actually addressing the us- most “more real than real” and it is now unthinkable to have a er’s requirement more precisely.

28 • SP’S • Inaugural Issue • 2008 TECHNOLOGY / TRAINING

How can the growth of the flight-simulation industry be provided by the Government. Specifically, such an effort could achieved? This can only be done by the Government investing be tailor-made for addressing the upcoming requirement of in R&D to reap the technology harvest in future. Unfortunately, MPL discussed later. Indian PSUs have demonstrated ineptness in entrepreneurship We lack clear legislative criteria for Flight Simulators. of this kind. Private industry needs opportunity as well as sup- DGCA recognizes only Full Flight Simulators which means port to produce results. the fledgling simulation industry is left to compete in the big To exploit the potential for the simulator market in India, league of multi-million dollar motion simulators; a hugely ex- we need a radical change of mindset. Without strong govern- pensive area in which there is no local volume at this point in ment support through legislation, favourable tax regime and time. This effectively excludes Indian entrepreneurs as there is encouragement, our fledgling simulator industry would find it no way they can measure up to the experience and the financial extremely difficult to compete with established global players. requirements. The real benefit lies not just in marketing and operating simu- A stipulation like “ten years manufacturer experience, lators, but in their development and manufacture. proven financial capability” means that even a competent en- Driving factor for the original development of simulators trepreneur with all the relevant skills and technology can at was the requirement perceived by airlines, not by the regulator. best operate as a middle man or carry out maintenance for the The major airlines first fielded development for their in-house Original Equipment Manufacturers rather than acquire design training needs without being driven by a regulatory require- expertise. The simulation field offers huge synergies in scien- ment. They carried the development risks and cost, defined tific software, high-tech manufacturing and aviation related the need, pursued legislation, demonstrated effectiveness and activity. What is required is encouragement through favour- liaised with all agencies to push the concept to fruition. Only able tax or duty regime and governmental support to attract later was legislation enacted to make simulation a mandatory investment. part of training. Being customer-driven, the process was ex- We also need clear legislation recognizing time in simula- tremely practical. This situ- tors other than Full Flight (full ation is only possible with motion) Simulators as manda- the system of synergistic tory training. Currently, there public-private partnership ‡ The potential benefits of is a huge drain of foreign ex- which exists in the US. change with airlines inevitably The situation in India is encouraging the simulator sending pilots abroad for simu- very different. Simply put, industry are immense. lator training or buying expen- the airlines have a strong sive Full Flight Simulators from voice within the US FAA. Through legislation and major international players. Unfortunately, in India, it proactive Government MPL is set to make simula- is barely a squeak if indeed tor training an important com- it is heard at all. In such a support the Indian industry ponent of basic flying training. scenario, we as a nation are This move represents the grow- likely to end up buying ex- could turn this opportunity ing awareness from within the pensive simulation facilities into a major spin-off industry. aviation industry that the need from the major players due of the hour is for training spe- to our unwillingness and in- cific to Multi-Crew airliners ability to promote our own not necessarily involving the developers or products and not because of lack of technologi- large amounts of “solo” flying required in the traditional basic cal capability. “single-seater” approach to flying. This school of thought puts emphasis on systems management, crew coordination, conflict A REALITY CHECK resolution and many other such non-traditional aspects. Not Does any such capability exist in India? A live and current ex- surprisingly, it leans heavily towards simulator training, and, ample of a simulator manufactured in India to suit its require- surprisingly, there is a growing awareness that motion is not ments exists in Pune. An entirely private foundation owns and as essential as fidelity of systems software and performance. In operates a fixed base simulator which can provide generic this context, an ICAO report on MPL, based on the experience glass-cockpit simulation of the full mission profile for the twin- of several flying schools who undertook to be part of the Beta jet medium category aircraft. The simulator including visuals, testing phase for the original study on MPL, is expected within control laws, systems and cockpit panels has been designed and the year,. manufactured in Bengaluru. The entire equipment is mounted The potential benefits of encouraging the simulator indus- inside a standard commercial truck, which increases its mobil- try are immense. We could conceivably leapfrog the “motion- ity as well. intensive” stage of simulator development. We could concen- The whole project has been conceived and executed by trate on developing high-fidelity, advanced technology devices an individual without commercial objectives and is operating needed for the future, rather than competing at solving yester- flawlessly. In stark contrast, a simulator acquired at enormous day’s problems. Through legislation and proactive Government cost from abroad and installed at a Government-owned flying support the Indian industry could turn this opportunity into a training facility, is usually non-functional. major spin-off industry from the fastest growing aviation sec- Initiatives like this could address any requirement provided tor in the world and gain a technological foothold in the global the latter is clearly articulated and a degree of facilitation is aviation industry. SP

Inaugural Issue • 2008 • SP’S • 29 Fact File AIR INDIA PHOTOGRAPH: BOEING

A lowdown on Air India, its evolution, growth and future plans

IR INDIA IS THE NATIONAL flag carrier of India business Air India started its low-cost subsidiary named Air India Ex- with a worldwide network of passenger and cargo press in May 2004. AIX has been operating exclusively on Gulf routes, services. The airline had its beginning as Tata Air- but has now expanded to Singapore as non-Gulf Route. lines, which was started in 1932 by J. R. D. Tata. Fol- In March 2004, Air India started non-stop flights from Ahmed- lowing the end of World War II, regular commercial abad’s Sardar Vallabhbhai Patel International Airport to London, service was restored in India and Tata Airlines be- Heathrow, using Boeing 777 aircraft leased from United Airlines. came a public limited company on July 29, 1946 un- Additional Delhi-Frankfurt-Los Angeles, Delhi-Amritsar-Birming- der the name Air India. After the Independence of India, 49 per cent ham-Toronto, and Delhi-Dhaka-Kolkata-London services were also Aof the airline was acquired by the Government of India in 1948, with added. an option to purchase an additional two per cent. In return, the airline Today, Air India also flies to East and Southeast Asia, South Asia was granted status to operate international services from India as the and the Middle East, East Africa, Western Europe and the United designated flag carrier under the name Air India International. On Kingdom. The airline also flies to four destinations in the United June 8 1948, a Lockheed Constellation L-749A named Malabar Prin- States, and serves one in Canada. It will be starting nonstop flights cess and registered VT-CQP took off from Bombay bound for London from Bangalore to San Francisco in August 2008. It will also connect via Cairo and Geneva. This marked the airline’s first long-haul inter- Washington DC and one city in Texas via Munich. national flight, soon followed by service in 1950 to Nairobi via Aden. POST MERGER SCENARIO AIR INDIA OVER THE YEARS On July 15, 2007, Air India and Indian (formerly Indian Airlines) On August 1 1953, the Government of India exercised its option to merged into one airline, with the name remaining as Air India. A new purchase a majority stake in the carrier and Air India International entity, called the National Aviation Company of India Ltd. (NACIL) Limited was born as one of the fruits of the Air Corporations Act that has been formed to manage Air India, which now has a fleet of over nationalised the air transportation industry. At the same time all do- 200 aircraft. Following these new developments, the new airlines ap- mestic services were transferred to Indian Airlines. In 1954, the airline plied for membership to the Star Alliance. Air India (the whole merged took delivery of its first L-1049 Super Constellations and inaugurated company along with Indian) has now been accepted as a part of the services to Singapore, Bangkok, Hong Kong and Tokyo. Air India Inter- Star Alliance. The formal announcement to this effect was made at national entered the jet age in 1960 when its first Boeing 707, named the Star Alliance meeting on December 13, 2007. Nandadevi and registered VT-DJJ, was delivered. Jet services to New NACIL is now seeking to expand its network and hopes to be- York via London were inaugurated that same year in May 1960. On come the biggest South Asian airline and one of Asia’s biggest. Air June 8, 1962 the airline’s name was officially truncated to Air India. On India will replace seven of its Boeing 747-400 by 2010 and is evalu- June 11, 1962 Air India became the world’s first all-jet airline. ating the Boeing 747-8 aircraft as their replacement. Air India is in In 1970, Air India moved its offices to downtown Bombay. The talks with Airbus for eight A380 Super jumbos. If Air India orders now, next year, the airline took delivery of its first Boeing 747-200 named these aircraft can be delivered by 2012. Meanwhile, Air India is refur- Emperor Ashoka and registered VT-EBD. In 1986, Air India took deliv- bishing the interiors of its six Boeing 747-400. This refurbishment in- ery of the Airbus A310. The airline is the largest operator of this type in cludes in-flight entertainment systems in all classes. Air India also has passenger service. In 1988, Air India also took delivery of two Boeing plans to purchase the Airbus A350-1000 and the Airbus A340-600 for 747-300s in mixed passenger-cargo configuration. In 1993, Air India ultra long haul routes and long haul routes respectively. Additionally, took delivery of the flagship of its fleet when the first Boeing 747-400 Air India will be wet leasing two Airbus A330 and Airbus A340-500 named Konark and registered VT-ESM made history by operating the from Kingfisher Airlines. first non-stop flight between New York and Delhi. In 1994 the airline Additionally, Air India plans Boeing 777-300ER aircraft to replace was registered as Air India Ltd. In 1996, the airline inaugurated service their Boeing 747-300 aircraft and Boeing 767-300 leased aircraft. The to its second US gateway at Chicago’s O’Hare International Airport. Boeing 777-300ER will operate on routes to Europe and the United In 1999, the airline opened its dedicated Terminal 2-C at the newly States. Also, the airline is planning to use Boeing 787-8 aircraft to re- renamed Chatrapati Shivaji International Airport in Mumbai. place their ageing Airbus A310-300 on routes to the Middle East and The 21st century has seen Air India introduce new services to Southeast and East Asia. Shanghai in China, as well as two new US gateways at Newark Liberty The first Boeing 777-200LR aircraft was delivered by Boeing to Air International Airport (EWR) and Los Angeles (LAX). To expand its India on July 26 2007. The 777-200LR will operate on non-stop routes

30 • SP’S • Inaugural Issue • 2008 Fact File to North America. These new aircraft will also allow Air India to open AT A GLANCE up new routes to Australia, Canada, Europe, East Asia, Africa and the United States (Air India plans to add flights to additional cities in the ir India has placed an order on Boeing Airplanes Company for United States, which include San Francisco and Washington D.C. Air the acquisition of 68 new aircraft - 50 for Air India and 18 for India has also ordered 18 Boeing 737-800 for its low cost subsidiary AAir India’s low budget subsidiary airline - Air India Express. The Air India Express of which eight have been delivered. 50 aircraft ordered for Air India include eight B777-200LR medium On July 28, 2007, Civil Aviation Minister Praful Patel proposed a capacity ultra long-range aircraft; 15 B777-300ER medium capacity further fleet expansion of 68 aircraft. Air India is working with both long-range aircraft; and 27 B787 medium capacity long-range aircraft. Airbus and Boeing, and since this order will be only for extra wide- For Air India Express, 181-seater 18 B737-800W aircraft have been body aircraft, it may include the A380, Boeing 747-8, additional Boe- ordered. The phased induction of these aircraft which commencing November 2006 will be completed by 2012. Air India, India’s interna- ing 777, Boeing 787 or the Airbus A350-1000 and Airbus A340-600. tional flag carrier, operates approximately 170 flights a week. Its low- Air India had ordered eight Boeing 777-200LR aircraft out of which cost subsidiary, Air India Express, operates 116 services a week to 10 five have already been delivered and the remaining three aircraft will destinations in the Gulf and South East Asia. Air India carries more be delivered in mid 2009. Other aircraft that form part of the 68 air- than 5 million passengers a year. n craft order are 15 B777-300ER, 27 B787 Dreamliners and 18 B737- 800. Apart from the Boeing aircraft, the merged Air India also has 43 Airbus aircraft on order—20 A321, 19 A319 and 4 A320—12 of which have already been inducted. international destinations within a distance of around four hours Introduction of several new flights on the international and do- from different cities in India. Currently Air India Express flies to 10 mestic routes, increase in capacity offered and enhancement in fre- international destinations– Dubai, Sharjah, Abu Dhabi, Al Ain, Mus- quency of several flights are the salient features of Air India Summer cat, Salalah, Singapore, Bahrain, Doha, and Colombo from nine In- Schedule that came into effect from March 30, 2008. On the interna- dian cities – Kozhikode, Kochi, Thiruvananthpuram, Mumbai, Delhi, tional network, Air India will now operate a non-stop A310 flight be- Amritsar, Chennai, Mangalore and Tiruchirapally. SP tween Delhi and Shanghai. The flight, introduced in 2003, was earlier operated on the Delhi-Bangkok-Shanghai sector. The airline is also Compiled by Sanjay Kumar introducing a direct service between Banga- lore and Dubai three times a week. Passen- gers will also have the advantage of increased AIR INDIA FLEET frequency on other international sectors. The Type Total Passengers Routes Notes Mumbai-Singapore-Mumbai A330 flight, the (First/Business/ Delhi-Muscat-Delhi flight and the Bangalore- Economy) Male-Bangalore flight will now be daily flights. Airbus A310-300 16 201 Short and Medium Six being converted to The frequency of flights on the Delhi-Kabul- (0/20/181) haul routes cargo Delhi sector has been increased from four to Airbus A319 11 125 Domestic routes only, six flights a week. (9 on order) (0/0/125) ex-Indian On the domestic network, Air India will become the only airline to offer an early Airbus A320 48 146 Short and Medium morning direct connection from Thiruvana- (0/20/126) haul routes, ex-Indian nthapuram/Kochi to Delhi and a return eve- Airbus A321 5 175 Short and Medium ning flight, with a daily A320 service on the (15 on order) (0/06/169) haul routes sector. Besides this, a daily Mumbai-Lucknow- Varanasi flight, a daily Mumbai-Kochi-Trivan- Airbus A330-200 2 Medium haul routes drum flight and a daily Bangalore-Kochi flight Boeing 747-300 2 283 Medium and Long To be converted for Air are some of the other new introductions. The Combi (16/40/227) haul routes India Cargo Delhi-Raipur sector will now have a daily fre- Boeing 747-400 10 431 Long haul routes quency as against three flights earlier. (12/34/385) AIR INDIA’S PASSENGER FLEET Boeing 757-200 1 217 Delhi-Kuwait City The average age of the Air India fleet was 13.3 (0/0/217) years (as of November 2007). The airline has Boeing 767-300 2 290 Medium haul routes ordered 27(7 options) Boeing 787-8 to be de- Boeing 777-200/ 4(200ER) 5(200LR) 200 and 200 Medium/Long/Ultra livered in 2008-2009. ER/LR (3 on order (LR)) ER:292 (12/49/231) Long Haul routes 200LR: 238 (8/35/195) AIR INDIA EXPRESS Boeing 777-300ER 6 (9 on order) 342 (4/35/303) Long haul routes First of the order Air India Express is a low cost subsidiary of delivered on the national flag carrier, Air India. The car- October 10, 2007 rier with plans to operate on low yield routes Boeing 787-8 0 (27 on order) Long haul routes To be delivered in 2008- to the Gulf and Southeast Asia has replaced 2009. May be delayed. Air India on a number of routes and is understood to have been achieving strong load fac- Total 112 +(63 on order)=175 tors. Air-India Express offers flights to major

Inaugural Issue • 2008 • SP’S • 31 Finally... Echoes of isENOUGH enough By Air Marshal (Retd) B.K. Pandey

HE UGLY SPAT AT CALICUT airport on April 7 safety implications. It is unlikely that such feudalistic behaviour and between Rajya Sabha MP Abdul Wahab and Cap- uncivilized conduct can be witnessed in any other democracy. tain Rajat Rana, a pilot of Air India, was cause of This is not to say all VIPs are obnoxious. Many are fastidious much embarrassment to the VIP and amusement about punctuality and shun vulgar display of status. Similarly all for the media. On insistence by the Pilot-in-Com- airline commanders are not lily white. Not long ago, the Minister mand, Wahab and family were unceremoniously of Civil Aviation Praful Patel himself was made to wait at Heath- offloaded when he intruded into the cockpit and row to board a flight by Air India crew who were callous enough reportedly intimidated and insulted Captain Rana. Wahab also not to show up on time. As the Air India flight was delayed, the Tallegedly threatened to move a privilege motion before the Parlia- minister boarded a Jet Airways flight to return home. Some air ment “to put the pilot in his place”. Shocking as it was, the episode travelers have described Air India as “a carrier notorious for ruth- needs to be viewed in the wider context of VIP misdemeanours less lawlessness and customer harassment”. Stories of passengers that have acquired the status of routine public nuisance. being stranded or left high and dry abound. In a survey carried out by a leading TV news channel, 67 per cent Undoubtedly, there are serious inadequacies on both sides; of pilots interviewed said they have had to delay the departure of but the situation is ripe for change. Fierce competition is driving scheduled flights due to late arrival of a VIP; 64 per cent of them did airlines to lure clientele through focus on passenger care, pleas- not take up the issue for fear of reprisal and possible loss of job. De- ing in-flight comforts, attractive fares and on-time performance. layed departure on account of interference by VIPs is an experience Conduct of both the ground staff and the aircrew have received any frequent flier, especially on state-owned airline, would corrobo- special attention, notably by the airlines in the private sector. rate. This malaise pervades other areas of public life, including rail However, the conduct of Indian VIPs has a long way to go before and road travel. VIPs, occasionally self proclaimed, have been known change is likely to be perceptible. In the recent past, a group of to have forced quivering railway officials to reposition even Rajdhani Indian VIPs of the government travelling by Singapore Airlines to express at a platform of choice as it was below their dignity to move to Australia were offloaded at Singapore under instructions of the the platform where the train arrived as per schedule. There have been Captain of the aircraft for collective unruly behaviour in flight. numerous incidents of marauding low rung VIPs and their relatives Taking umbrage to the April 7 incident, the Indian Commer- depriving defenceless cial Pilots’ Asso- citizens of their bona ciation (ICPA) has fide reservation and Captain Rajat Rana’s response to a VIP’s callous demanded an un- even physically evict- conditional apol- ing them along with disregard for public decorum perhaps indicates ogy from the VIP. their baggage from the But this demand train itself. It is a com- that the old order is no longer acceptable is unreasonable mon practice to stop all as humility is not movement of traffic for a virtue with most a VIP cavalcade with flashing lights and ear spitting howl of sirens to Indian VIPs. Contrast this with the exemplary response by Jimmy pass with scant regard for public convenience or wellbeing. Carter who rendered an apology to a young man whose motor While security concerns may partially justify this practice in re- cycle collided with the President’s vehicle when his cavalcade was spect of heads of states for the sake of security, it is intolerable when driving through a red light at a road junction, a practice universally the rights of law abiding citizens are violated so arrogantly and ruth- not uncommon for speedy movement of high dignitaries. lessly by our own political leaders who in the first place were elect- In the episode in question, the intolerant response by Captain Ra- ed to form a ‘government of the people, by the people and for the jat Rana to the callous disregard for public decorum by a VIP is per- people’, usually referred to as a democratic. Instead of projecting the haps an indication that the old order is no longer acceptable and that image of humble public servants, unscrupulous VIPs take the nation there is motivation for change. In the final analysis, the incident, ugly as for granted and display utter disregard for rules, regulations, decency it was, would in all probability trigger the process of change. The tide and decorum. While such conduct on the ground impinges the rights may finally begin to turn provided of course Captain Rana is not ‘put in of the common man, tantrums by VIPs aboard an aircraft has serious his place’ by Air India or the political establishment. SP

32 • SP’S • Inaugural Issue • 2008 OUR PHILOSOPHY: BE PREPARED TO CHANGE EVERYTHING, TO MAKE SURE NOTHING CHANGES.

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