SP's Aviation

SP’s An SP Guide Publication u y e r only) se d b 100.00 (Ind i a-ba

` Aviation Sharp Content for Sharp Audience

www.sps-aviation.com vol 16 ISSUE 12 • december • 2013

REgional Aviation Show Report • Problems & PROSPECTS • dubai air show: Stunning the World • interview: K.N. Babu, CEO, Air Costa Military operations • Embraer Commercial IN ASIA • IAF’s Humanitarian missions Business Aviation • C-130J in Relief Operations • interview: Gilles Gautier, FALCON SALES Vice President + FOR EMEA, dassault Falcon ...& much more civil aviation training • interglobe-cae facility launched

civil aviation: Market outlook 2014 A Kick

RNI NUMBER: DELENG/2008/24199 StartPAGE 16 For missions as varied as the terrain It’s the most versatile airlifter the world has ever seen. The C-130J Super Hercules is equally comfortable performing combat rescue, humanitarian relief and deep covert missions. In any kind of weather, at any time of day or night, the C-130J is the flexible airframe that’s ready for India’s most vital missions today — and tomorrow.

www.lockheedmartin.com/C130

301-66839_C130_ForMissions_Aviation.indd 1 10/1/13 4:02 PM table of contents

vol 16 ISSUE 12 • december • 2013

An SP Guide PublicAtion r only) E y U SE d b a-ba 100.00 (Ind I

` Sharp Content for Sharp Audience

www.sps-aviation.com vol 16 ISSUE 12 • dEcEmbEr • 2013

REgional aviation show REpoRt • Problems & ProsPeCTs • dubai air show: sTunninG The world • inTerview: K.n. babu, Ceo, air CosTa MilitaRy opERations • embraer CommerCial in asia • iaF’s humaniTarian missions BusinEss aviation • C-130J in relieF oPeraTions • in Terview: Gilles GauTier, FalCon sales viCe PresidenT + For emea, dassaulT FalCon ...& much more civil aviation tRaining • inTerGlobe-Cae FaCiliTy launChed

civil aviation: MaRkEt outlook 2014

RNI NUMBER: DELENG/2008/24199 pagE 16

Cover IMAGE: Air Costa presently has in its fleet two Embraer E170 aircraft, a third on lease and is buying one E190 soon to take its initial route connectivity up focusing on growth: air costa has leased two E170 jets from ECC and the third is due from four to eight. from GECAS soon. The plan is to have five E170s and E190s by the end of 2013, ten by 2014 and a total of 25 aircraft by 2018. Image by: Embraer

Helicopter Show report page 16 6 Technology 22 Dubai Airshow 2013 Rotorcraft Safety Stunning the World Lead Story

Civil military Regional Aviation 26 Infrastructure 7 Problems & Prospects From Tactical to Strategic air costa – 10 Embraer – Expanding the Empire a kickstart! 28 Operations 12 Business Aviation IAF’s Humanitarian Missions Founded in 1983 by first-generation Factfile: Legacy 450 entrepreneur LP Bhaskar Rao, the Interview privately-held Lingamaneni group, 14 Gilles Gautier, regular has tasted success in real estate and Falcon Sales Vice President Departments construction business. It remains to for EMEA, Dassault Falcon 3 A Word from Editor-in-Chief be seen how the group’s fledgling 18 Captain K.N. Babu, airline is going to navigate through Chief Executive Officer of Air Costa 4 NewsWithViews turbulent skies. 32 Rahul Bhatia, –MoD to Seek Opinion of Law Ministry Group Managing Director of on VVIP Helicopter Deal InterGlobe, and Marc Parent, – Reliance and Dassault Facility to President and Chief Executive Produce Wings for the Rafale Officer of CAE 35 Hall of Fame Applied for 19 Market Marie Marvingt (1875-1963) Civil Aviation 2014: Cautiously Optimistic 36 NewsDigest NEXT ISSUE Training 40 LastWord 34 Shape of Future World-Class Pilot Training in India No Hope Sans Privatisation

www.sps-aviation.com ISSUE 12 • 2013 1 table of contents Factfile: 12 Legacy 450 Publisher And Editor-in-Chief DIRECTOR SALES & MARKETING Jayant Baranwal Neetu Dhulia SALES & MARKETING senior Editor General Manager Sales: Rajeev Chugh Air Marshal (Retd) B.K. Pandey SP’s websites Assistant Group editor Sr Web Developer: Shailendra P. Ashish R. Chandrakanth Web Developer: Ugrashen Vishwakarma

Senior Technical Group Editor © SP Guide Publications, 2013 Lt General (Retd) Naresh Chand Subscription/ Circulation Annual Inland: Rs 1200 • Foreign: US$ 320 Assistant editor E-mail: [email protected] Sucheta Das Mohapatra [email protected]

Contributors LETTER TO EDITOR India [email protected] Group Captain (Retd) A.K. Sachdev [email protected] Group Captain (Retd) Joseph Noronha FOR Advertising details, contact: Europe [email protected] [email protected] 22 Stunning the World Alan Peaford USA & Canada SP GUIDE PUBLICATIONS PVT LTD A-133 Arjun Nagar, LeRoy Cook (Opposite Defence Colony) New Delhi 110 003, India. Chairman & Managing Director Jayant Baranwal Tel: +91 (11) 24644693, 24644763, 24620130 Planning & Business Development Fax: +91 (11) 24647093 Executive Vice President: Rohit Goel E-mail: [email protected] Representative Office ADMIN & COORDINATION BENGALURU, INDIA Bharti Sharma 204, Jal Vayu Vihar, Kalyan Nagar Bengaluru 560043, India. design Tel: +91 (80) 23682204 Holistic Directions: Jayant Baranwal Creative Director: Anoop Kamath MOSCOW, RUSSIA LAGUK Co., Ltd., (Yuri Laskin) Designers: Vimlesh Kumar Yadav, Krasnokholmskaya, Nab., Sonu Singh Bisht 11/15, app. 132, Moscow 115172, Russia. Research Assistant: Graphics Tel: +7 (495) 911 2762 IAF’s Humanitarian Survi Massey Fax: +7 (495) 912 1260 28 Missions Owned, published and printed by Jayant Baranwal, printed at Kala Jyothi Process Pvt Ltd and published at A-133, Arjun Nagar (Opposite Defence Colony), New Delhi 110 003, India. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, photocopying, recording, electronic, or otherwise without prior written permission of the Publishers.

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2 ISSUE 12 • 2013 www.sps-aviation.com A word from editor-in-chief There is undoubtedly good reason for it as going by the mega deals concluded at the Dubai Airshow held this year, there should be no doubt that there is a definite upswing in the civil aviation industry and notwithstanding the occasional setbacks and impediments, the overall outlook for the civil aviation industry is positive.

As the current year is fast approaching its end, spirits in On the military aviation front, there appears to some for- the civil aviation industry are finally beginning to rise. Globally, ward movement with the contract for the 126 medium multi- the industry is anxiously looking forward to a more cheerful and role combat aircraft for the Indian Air Force (IAF). The con- rewarding year ahead. There is undoubtedly good reason for it tract negotiations that have been going on for the past nearly as going by the mega deals concluded at the Dubai Airshow held two years seem to be finally moving forward as evident from from 17 to 19 November this year, there should be no doubt reports that Dassault Aviation and Reliance Industries Limited that there is a definite upswing in the civil aviation industry and have approval from the government to set up a major facility to notwithstanding the occasional setbacks and impediments, the manufacture the wings for the Rafale. This must be music to the overall outlook for the civil aviation industry is positive. In this ears of the IAF. Speaking of the IAF, the newly acquired Lock- issue is a detailed report by R. Chandrakanth of SP Guide Publi- heed Martin C-130J Super Hercules that have been in service cations on the Dubai Airshow clearly highlighting how the avia- in India for just about two years, have already made a mark for tion scenario in the world is changing rapidly with the Middle themselves in the disasters that have struck both within and East region heading the race to become a global aviation hotspot. outside the country. A report on IAF’s humanitarian missions by The Middle East is at a clear advantage being in the cen- Air Marshal Raghu Rajan has been included in this issue. tre of a region with the world’s fastest-growing aviation infra- All these and more in this issue apart from the regular fea- structure, lowest fuel costs and the fastest-growing airlines. tures. Welcome aboard and happy landings! ChandrakanthA also has an in depth analysis of the outlook for the civil aviation industry for the year 2014 and beyond. Most observes and analysts are optimistic about the prospects of the industry not only for the airline industry but also for business aviation as evident from the interview with Gilles Gautier, Vice President International Sales Dassault Falcon Jet Corporation, included in this issue. Writing from Bengaluru, A.K. Sachdev analyses the prospects for Regional Aviation in India and observes that the government has been tardy in taking steps to promote regional aviation. Tragically, there appears to be no visible sense of urgency in the establishment to exploit this segment of civil aviation. In the final analysis, regional aviation in India is yet to take off. However, despite the situation being not entirely favourable for the airline industry and especially for regional aviation in India, a new player, low-cost carrier Air Costa, has emerged on the scene. Launched by a Vijaywada-based LEPL Projects, Air Costa seeks to exploit regional routes where the intensity of competition would be lower. Air Costa is optimistic about the changes in the operating environment and the several steps that the government is taking to promote regional aviation. The low-cost Jayant Baranwal carrier is hopeful that these will eventually facilitate matters for Publisher & Editor-in-Chief the industry.

www.sps-aviation.com Issue 12 • 2013 3 News with views NEWS: MoD to seek opinion of Law Ministry on VVIP helicopter deal

The Indian Defence Ministry will seek Ministry’s opinion would be studied first the opinion of the Law Ministry on the before any decision is taken on the deal. response given by the Anglo-Italian firm India had paid a substantial part of the AgustaWestland, before taking any deci- `3,700 crore deals and received three sion on the controversial VVIP helicopter helicopters, two in VIP and one in cargo deal, which may be scrapped eventually. configuration. The money paid so far, The company submitted its response is for six choppers. The deal has been to the Defence Ministry’s show-cause frozen since February 2013, hours after notice, a day ahead of the deadline, but Italian police arrested the top boss an official said the response and Law of Finmeccanica.

VIEWS:

In 2010, the Ministry of Defence (MoD) awarded a contract times. A clear cut case of “cutting ones nose to spite the face”. worth Euro 560 million (`3,700 crore) to the Anglo-Italian com- The first report of possible wrongdoing in the AW101 contract pany AgustaWestland, part of the Italian aerospace major Finmec- appeared in the Indian media in February 2012. However, after the canica, for the supply of 12 AW101 helicopters. These platforms arrest of the Finmeccanica CEO in February 2013, the MoD handed were required for use by the President and the Prime Minister over the case to CBI for investigation and put on hold further pay- (PM) of India as also other heads of states visiting India as the ments to AgustaWestland. On October 21, the MoD issued a final guest of the government. The platforms were to be operated by Air show cause notice to AgustaWestland, seeking to cancel the deal for Headquarters (Air HQ) Communication Squadron located at Delhi. violation of the integrity pact. Reply to the notice by the company In response to a proposal initiated in August 1999 by Air has been referred to the Law Ministry for opinion. Meanwhile, the HQ to replace the ageing fleet of Mi-8 helicopters with the Com- MoD has rejected an appeal by AgustaWestland for arbitration and munications Squadron; in March 2002, the MoD issued a global there is a strong possibility that the contract may be cancelled by request for proposal (RFP) for the supply of eight helicopters. the Indian Government. Disposal of the three helicopters and the On initial scrutiny itself of the four vendors that responded to spares already with the IAF, as also modus operandi for the recov- the RFP, three did not fulfil the staff qualitative requirements ery of advance payment, are issues that remain unclear. (SQRs) resulting in a single vendor situation that was not Whatever be the truth behind the allegations of misdemean- acceptable under the procurement procedures. Under guidance our and irrespective of who the beneficiaries of the alleged illegal of the Principal Secretary to PM, the SQRs were revised, num- payments are, it is important that the MoD does not lose sight of bers increased to 12 and a fresh RFP was sent to six vendors in the objective of the exercise that began 15 years ago, which is to September 2006. After elaborate evaluation and field trials Air procure helicopters suitable for VVIP use. Contractual paradigms HQ concluded that amongst the six contenders, only the Agus- and corrupt practices need to be regarded as two separate enti- taWestland AW101 was fully compliant with the SQRs. ties. The Defence Procurement Procedure needs to be suitably Against an advance payment of 30 per cent of the contract modified to include provisions for dealing with corrupt practices value, the company delivered the first three machines in Decem- detected in the process of procurement of military hardware, ber 2012 and was to supply the remaining nine by mid-2013. without these or follow up action impinging on the continuation Pilots and engineers have already undergone training in the of contract itself. Unfortunately, in the last decade, the practice of UK and a stock of spares for long-term maintenance has also cancelling the procurement process related to defence hardware arrived. However, things went haywire following accusations owing to detection of irregularities, appears to have become the against Orsi, CEO Finmeccanica, by a former employee after he rule rather than an exception. In the case under discussion, the was sacked for “ethical violations”. Orsi was accused of brib- helicopters in question are not “military hardware” and can- ing Indian officials to swing the deal in favour of the company cellation of the AW101 contract will only degrade the facilities while heading AgustaWestland. The Italian Government then required for VVIP travel. But cancellation of major contracts initiated investigation and judicial proceedings against Orsi for related to defence equipment required urgently by the Indian the alleged misdemeanour, a step that was inspired possibly by armed forces, would undoubtedly have disastrous implications

gustaWestland internal conflict in the Italian polity rather than concern for pro- for national security. Hopefully, in the case of the AW101 con- priety in foreign contracts. This move by the Italian Government tract, wise counsel would prevail or will turn out to be another also appears somewhat strange as it has the potential to deci- case of “cutting one’s nose to spite the face”. SP mate this high value contract leading to substantial financial loss,

Photogra p h: A especially when the Italian economy is passing through troubled —By Air Marshal (Retd) B.K. Pandey

4 ISSUE 12 • 2013 www.sps-aviation.com News with views NEWS: Reliance & Dassault facility to produce wings for the Rafale

The French aerospace major Dassault industry sources, this facility is most Aviation and India’s Reliance Indus- likely to come up in Bangalore. Under tries are planning to set up a facility the plan, Dassault Aviation would help to produce wings of the Rafale com- Reliance to establish the factory that bat aircraft selected by the Indian will be similar to its production facili- Air Force (IAF) in the tender for 126 ties in France where the aircraft is Medium Multi-Role Combat Aircraft produced. The Defence Ministry and (MMRCA). The two firms are planning other agencies concerned have given to set up a facility involving an invest- a go ahead to the two companies for ment of Rs 1000 crore and as per creating the unit.

VIEWS:

As early as in the beginning of 2012, soon after the Rafale for quality and delivery schedule in respect of those platforms offered by Dassault Aviation of France was shortlisted as the licensed manufactured in India by HAL. preferred platform in the tender for the MMRCA for the IAF, The Ministry of Defence held the view that as per the RFP, the French original equipment manufacturer (OEM) had indi- while Dassault Aviation was free to partner with any Indian cated that it had selected Reliance Industries as its Indian company in the aerospace sector to meet with its offset obli- partner for jointly producing the batch of 108 Rafale combat gations that for this particular contract has been pitched jets in India for the IAF. In fact, Dassault Aviation did proclaim at 50 per cent of the contract value, the licensed manufac- that it had already signed a memorandum of understanding ture of the platform would be the responsibility of HAL that (MOU) with Reliance Industries Limited, India’s largest pri- had been stipulated as the lead integrator in the RFP. The vate sector company, “for pursuing strategic opportunities Ministry of Defence further stated that HAL in turn had the of collaboration in the area of complex manufacturing and liberty to outsource work packages to private companies support in India”. For Reliance Industries, it would be their in the Indian aerospace sector. Also, as the terms of the maiden venture in the regime of manufacturing for the aero- RFP had been accepted by the bidder for participating in nautical industry. the tender, no deviation would be possible at this stage. Apparently, the French OEM did not have the required Stand adopted by Dassault Aviation was thus rejected by the level of confidence in the capability of the Indian aerospace Ministry of Defence. major Hindustan Aeronautics Limited (HAL) to handle the From the reports appearing in the media in the recent past, production of a fourth generation combat jet. It is understood it appears that the issue of role of HAL in the MMRCA project that this was based partly on an observation by Timothy J over which there were protracted negotiations and consequent Roemer a former US Ambassador in India, in a confidential delay in the finalisation of the contract, appear to have been cable that somehow was leaked to the media. In his report to finally resolved. Dassault Aviation and Reliance Industries lim- the American government, the US Ambassador is believed to ited have now been given the go ahead by the Indian Ministry have concluded his assessment with the words “HAL’s abil- of Defence to establish a new facility with considerable invest- ity to partner effectively with American firms for the licensed ment, to manufacture a major component, the main planes production of the MMRCA, was untested and suspect”. The or wings for the Rafale MMRCA. This arrangement appears adverse impression created by this leaked report was further somewhat similar to that between HAL and Bengaluru-based aggravated when a team from Dassault visiting the HAL facil- Dynamatic Technologies wherein work packages have been ity in Nasik, was reportedly disappointed by the infrastructure outsourced to the latter that manufactures major airframe in place there and expressed concern about “the capability of components of the Su-30 MKI for the HAL plant at Nasik. In HAL to absorb the required technology”. the case of the MMRCA too, HAL will thus continue to be the Dassault Aviation thus indicated their preference for Reli- lead integrator. viation ance Industries over HAL to enter into partnership for building After an excruciating delay of two years since the selection the batch of 108 aircraft in India for the IAF. The French aero- of the Rafale, the tender is finally moving towards its logical

assault A assault space major wrote to the Indian Ministry of Defence that if it conclusion. The report in the media is bound to elevate the sag- was to shoulder overall responsibility for the project, it should ging spirits in the IAF that has been eagerly waiting for the be given the freedom to decide on the quantum of work to be finalisation of the contract. SP shared between HAL and private companies in India. Dassault

Photogra p h: D Aviation on their part was not willing to be held responsible —By Air Marshal (Retd) B.K. Pandey

www.sps-aviation.com ISSUE 12 • 2013 5 HELICOPTER TECHNOLOGY Rotorcraft Safety Honeywell is providing a clear view to make helicopter flying safer than ever before

Year 2012 was a very good year for fixed-wing commercial cations. In development with our advanced technology team, aviation. In fact, the International Air Transport Association SmartView for helicopters uses our enhanced ground proximity (IATA) named it the safest year in recent aviation history. What’s warning system (EGPWS) terrain and obstacle databases that troubling is that this success is yet to translate to helicopters, as have been proven in more than one billion flight hours. Heli- the rate of rotorcraft accidents has remained relatively constant copter pilots can use next-gen technologies such as SmartView during the past decade. to greatly decrease the chances of CFIT that result from low- YRotorcraft safety remains a paramount concern worldwide. visibility conditions. It’s easy to see why. Given the nature and scope of commercial SmartView provides helicopter pilots with real-time views of helicopter operations, spanning search and rescue, medical the aircraft’s location relative to surrounding terrain. It shows a evacuation and law enforcement, helicopters must fly close to 3D virtual view outside the cockpit that is free of visual impedi- the ground and therefore ments such as the weather face an increased chance conditions or the darkness of collision with terrain of night. A primary goal of and man-made obstacles. SmartView is to enhance Add low visibility to the a pilot’s aeronautical mix and the need to equip decision-making abilities, pilots with the best possible which IHST’s research cites safety technology becomes as one of the biggest needs crystal clear. According to to help prevent accidents. the International Helicop- A strategic tool, Smart- ter Safety Team (IHST), View offers visual dis- controlled flight into ter- plays, approach guidance rain (CFIT) makes up 27 cues, terrain shading and per cent of all helicopter other intuitive prompts accidents, with low vis- to aid helicopter pilots in ibility as the root cause of critical decision-making. many such crashes. IHST The system synthesizes data collected during 2000, key flight information and 2001 and 2006 shows that presents it to the pilot in 84 per cent of accidents one comprehensive, easy- were due to a problem to-understand picture with “pilot judgement and on the cockpit’s primary actions” while “safety man- flight display—ultimately agement” is ranked second improving overall safety. It at 43 per cent. directly addresses poten- However, despite the IHST’s 2006 goal of reducing heli- tial errors in pilot judgement and actions, the leading cause of copter accidents by 80 per cent by 2016, actual accident rates helicopter accidents. have been slow to decline. While helicopter flight remains very Moreover, this technology can be combined with other safe, even one accident is one too many. This is particularly true enhanced vision system technologies, such as LIDAR and milli- when considering that many of the crashes occur while bring- meter wave radar, to create a truly integrated “out the window” ing accident survivors or other victims to safety. The helicop- view of not only terrain and major man-made obstacles, but ter industry continues to grow, and Honeywell’s 2013 helicop- even smaller hazards, in any conditions. ter forecast shows that global delivery of new helicopters will Honeywell has showcased the benefits of safety technology increase by up to 5,600 craft by 2017. More rotorcraft in the and advanced avionics such as EGPWS and SVS for fixed-wing air increases the need for technology that reduces the pilot’s aircraft and how those technologies can drastically increase workload and provides maximum awareness of surroundings flight safety. With the continued growth of the helicopter indus- at all times to ensure crew and passenger safety. try, and with helicopter operations occurring in the challenging Now is the time to apply our collective expertise in fixed-wing environments inherent in low-altitude flight, Honeywell is ready safety technology to the unique conditions faced by rotorcraft. to bring the immense safety benefits of these technologies to the On its part, Honeywell is listening to customers and working to rotorcraft industry. SP provide the latest safety technology such as our SmartView syn- —By Mike Madsen,

Photogra p h: H oneywell thetic vision system (SVS) and extending it to rotorcraft appli- President of Defense and Space at Honeywell Aerospace

6 ISSUE 12 • 2013 www.sps-aviation.com Civil Regional Aviation

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

By Group Captain (Retd) A.K. Sachdev

The fact that there is only one regional airline (Air Costa) aviation has had more than a fair share of misfortunes. Not many functional in India, is both a reason to rejoice and a cause for ventured into the patently unprofitable sector; and the trials and commiseration—the former on account of optimism for the tribulations of those who did, discouraged others waiting in the future, and the latter due to regret over collapsed regional wings from venturing into regional aviation. MDLR Airlines sur- attempts in the past decade (since Air Deccan blew the first trum- vived for about two years before caving in, while Air Mantra pet announcing a new epoch in the history of Indian civil avia- lasted only a couple of months. The fact that the set of regulatory tion). The decade gone by has been extraordinarily daunting for and infrastructural circumstances that have stunted the growth Photogra p hs: W ikimedia Tthe Indian civil aviation industry in general. However, regional of regional aviation should have been allowed to endure for more www.sps-aviation.com ISSUE 12 • 2013 7 Civil Regional Aviation than a decade is mystifying; the self-evident state of regional avi- become exorbitant since their exit from the AAI fold and the ation and the equally transparent causal mechanisms are there incremental costs of operation have been passed on to the pas- for the establishment to perceive (and revamp, if it had the will sengers by helpless airlines. Understandably, there has been to). Alas! That has not been done. The major problems afflicting severe criticism from airlines and their global representative regional aviation are discussed below. body, the International Air Transport Association (IATA), primarily on the grounds that it has led to a massive hike in air- Infrastructure port costs and charges. Nonetheless, privatisation is inevitable The foremost causative factor is the slow development of airports as the cost of development of all 500-odd airports (and some at the Tier-II/III level; eleven states (Bihar, Chhattisgarh, Gujarat, new greenfield ones) is mind boggling and certainly not within Jharkhand, Madhya Pradesh, Meghalaya, Odisha, Punjab, Rajast- the government’s reach, despite the monopolistic regime exer- han, Uttar Pradesh and Uttarakhand) are barely noticeable on the cised by the government over airport, parking, navigation and air map of India. A recent study by Deloitte listed 52 Tier-II and landing charges levied on all aircraft operators. As part of the Tier-III cities that have the potential to become busy airports in second phase of privatisation in the near future, airports at the future. In recent months, the Airports Authority of India (AAI) Chennai, Lucknow, Kolkata, Ahmedabad, Guwahati and Jaipur, has been working rather unsteadily towards improving infra- are planned to receive private investments of `4,250 crore for structure at 35 airports at non-metro stations (including some their development. According to the qualification documents identified in the Deloitte list). The economic value of improving issued recently by the Ministry of Civil Aviation, the private airports within their geographical domain is also being realised players awarded the contracts for operations, management gradually by state governments (Andhra Pradesh being the leader and development in the second phase of airport privatisation in this regard). However, a macro level comprehension of the con- programme, would have to make estimated investments in the tribution of aviation to economy is yet to come about. range of `500-1,200 crore for development and upgrade works The Minister of Civil Aviation, Ajit Singh, speaking at the at each of these airports. This move has not gone down very Fourth India-US Aviation Summit in Washington recently, stated well with AAI employees who allege that the government wants that “the Indian Government has taken a number of measures to develop only those airports as are expected to generate min- to make air connectivity to remote and interior areas of the imal revenue while the more lucrative ones are being priva- country in Tier II and Tier III cities of India affordable”. He also tised. Balraj Singh Ahlawat, General Secretary, AAI Employees went on to call for more foreign direct investment from Amer- Union, asked a very relevant question, “The government says ica to contribute to airport infrastructure in India—a segment it plans to develop a network of 100 smaller airports, so why which needs for far more funds than those readily forthcoming should it not ask private companies to develop those instead of from either the government or the private sector. giving only the revenue generating ones to them.” He also feels that AAI revenue has gone down substantially consequent to The Privations of Privatisation the privatisation of Delhi and Mumbai airports. Despite oppo- The Airports Authority of India (AAI) manages 125 airports sition from within AAI and despite protests about extortionate although India has around 500 airports in varying stages of charges by aircraft operators, the government appears to be decay/development. AAI plans to develop another hundred air- focused on privatisation of a substantial number of airports. ports and some humble beginnings have been made in that Specifically, there is a noticeable haste to finalise the privatisa- direction. According to the Minister of Civil Aviation, India has tion plans for the six airports mentioned above; although for envisaged an investment of $12 billion in the airport sector the time being, the internal resistance has forced AAI to post- in the Twelfth Five-Year Plan, of which $9 billion is expected pone the bidding process for about two months. from the private sector. However, for aircraft operators and However, the private route is not a perfect solution to the passengers, privatisation of airports has not been an unadul- infrastructure problem. In Karnataka, the PPP model, espoused terated delight so far. The cost of operation at airports operated robustly by the state government for building infrastructure, privately or on a public private partnership (PPP) model has has failed to deliver results in the aviation infrastructure sec-

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

8 ISSUE 12 • 2013 www.sps-aviation.com Civil Regional Aviation tor. The PPP projects to develop airports in Gulbarga, Shi- fares in economy class. As a result, India is virtually a 100 per moga, Hassan, Bijapur and Bellary are stuck at various stages cent low fares market.” In quantitative terms, all indicators dis- of development due to problems with private parties. On the play a trend towards the low cost share increasing in the future. other hand, three other regional airports—Mysore, Hubli and However, the low-cost soubriquet is not really justified inasmuch Belgaum—were developed and upgraded by AAI and are func- as there are no low-cost terminals to operate from. Costs are tioning. The government is now planning to partner with AAI being cut by other means than the simple expedient of Spartan to develop regional airports in the five cities mentioned above. terminals which impose low usage charges to the airlines operat- This decision is also influenced by AAI’s announcement that it ing from them (with resultant low cost of air travel for passen- plans to develop over 100 regional airports across the country. gers). The ongoing infrastructural investment needs to take into During the discussions on privatisation of more airports, the account this simple factor and plan for low-cost terminals in the Planning Commission had proposed a draft concession agree- Tier II/III airports now being developed. The existence of low-cost ment based on a model linking landing and parking charges terminals would have the cascading effect of attracting more air- at airports to the Wholesale Price Index (WPI). This suggestion lines and passengers due to the lower cost of travel to and from was rejected by the Ministry of Civil Aviation as it would have those airports. Regional aviation would receive a tremendous given those charges an upward bias. The Ministry feels that on boost as a result. This fact is realised by the establishment too. the contrary, there should be a new index introduced to pro- Speaking at a meet organised by the World Travel and Tourism gressively lower those charges as the airports progressively Council (WTTC) in Hyderabad recently, Arun Mishra, Director recover their construction costs. General of Civil Aviation (DGCA), said: “The Indian aviation sector is not only facing turbulence in the skies but also on the ground,” Aviation Fuel Costs and went on to suggest some steps to expand and sustain aviation Very high aviation fuel costs (60 per cent over the global aver- industry in India; significantly, one of the steps he suggested was age) have been a factor afflicting civil aviation in India in general. the establishment of low-cost airports with no parking charges However, as sales tax/value added tax (VAT) is a state subject; across smaller cities. the cost of aviation fuel has a differentiation between states— the spectrum spanning 4-30 per cent. Thus the states charging Future Programmes higher sales tax/VAT on aviation fuel are axing their own inter- The government has been mulling over several initiatives (albeit ests in the long run. Chhattisgarh, at the lowest end of the con- at an agonisingly slow pace) to promote regional aviation. The tinuum, holds out the enticement of low cost of operations and Route Dispersal Guidelines regulating a minimum proportion of AirAsia is seriously considering making Raipur (one of the 35 air- total air seat kilometres flown by an airline to be flown towards ports being modernised by AAI) its hub in India. If a longstanding regional aviation are also under review. Plans for the develop- demand by the airlines industry for placing aviation fuel under ment of around 100 more airports are under way (again at a the “declared goods” category is acceded to, this differentiation laborious pace). In short, there is no apparent sense of urgency might disappear and bring about an overall positive effect of ren- to exploit this segment of civil aviation. If one were to summarise dering regional aviation more attractive across the board. the prospects for regional aviation in India, one could state that it is still warming up but is yet to take off. SP The International Lure Bhubaneswar and Imphal have recently been declared international airports and have joined an ever growing list of non- metro airports with international status. Small airports are increasingly reaching out to international destinations. As an illustration, Pune is now connected to four airports outside India: Dubai, Frankfurt, Sharjah and Bangkok. The charm and significance of being able to fly out from a Tier-II/III (regional) airport directly to destinations abroad will definitely encourage more and more small towns and cities to clamour for developing their own airports. A growth in regional aviation could be expected as a result.

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

www.sps-aviation.com ISSUE 12 • 2013 9 Civil Regional Aviation EMBRAER – EXPANDING THE EMPIRE With growing demand for regional aircraft, Embraer’s firm order backlog totalled $17.8 billion, reflecting an increase of 4.1 per cent from the last reported quarter.

By R. Chandrakanth

From the first delivery of Embraer-Jet (E-Jet) to LOT notably to Asia and, to some extent, southward to Latin Amer- Polish airlines in 2004, Embraer Commercial Jets has had sig- ica. The main drivers that will impact the global air travel nificant global footprint. In October 2013, when India’s new low industry include – strong pace of economic growth in emerg- cost carrier Air Costa started operations with E-Jets, Embraer’s ing markets; economic growth driven by middleweight cities tally of aircraft deliveries globally had surpassed the magic fig- and surge of an urban middle class. Embraer has forecast that ure of 1,000 jets with 61 customers in 43 countries. Indeed, world air transport demand will increase roughly 2.7 times an impressive story from the Brazilian aerospace major. In the by 2031, reaching 13 trillion Revenue Per Kilometre (RPK). By Asia-Pacific region, Embraer commercial jets are making fast 2031, Asia-Pacific and China will be the largest market in the inroads as several operators are seeing the benefits of the Bra- world, accounting for 34 per cent of world’s RPKs. Europe and zilian jets, none of which have the middle seat. North America will follow at 21 per cent RPKs each. China leads with three operators – Tianjin Air- World Demand Flines, China Southern and With such growth poten- Hebei Airlines – making the tial, Embraer has forecast best of the E-Jets. Japan that there would be world (J-Air and Fuji Dream Air) demand for 6,795 new and Australia (Virgin Aus- jets in the 30 to 120 seat tralia and Airnorth) have capacity segment over the two operators each and next 20 years, represent- there is a growing interest ing a total market value of in the region, considering $315 billion. Embraer has been talking The 90 to 120 seat seg- about the ‘right-size’ to ment will be the largest capture untapped markets. market with 3,765 new deliveries in the next 20 Power of 70-120 Seat years, representing 55 per Segment cent of the segment, fol- Embraer has been banking lowed by the 61 to 90 seat upon a few entrepreneurial segment with 2,625 new carriers who have recog- deliveries or 39 per cent nized the power of the 70 and the 30 to 60 seat seg- to 120 seat aircraft capac- Embraer expects to deliver 90 to 95 commercial ment with 405 new deliver- ity segment. These airlines jets globally By the end of this year ies or six per cent. with their fleets of E-Jets Asia-Pacific’s economic have brought affordable, outlook is above average quality air service to secondary markets not just in Brazil but with an annual GDP growth rate of 3.4 per cent forecast for the in other countries where the aircraft flies. Carriers in Africa, next 20 years. Japan and India will be at the forefront, followed China and Central Asia are all discovering the enormous poten- by economies of Australia, Indonesia, Malaysia, the Philippines, tial of the 70-120 seat aircraft to build network connectivity South Korea, Thailand, Taiwan and Vietnam. Growing trade with lower-risk increments of seat capacity. links between countries within the region will not only promote In its market outlook 2012-2031, Embraer has indicated local economic prosperity but also drive the need for improved

P hotograph: Embra e r that the centre of gravity for aviation will move eastward, most air transportation links.

10 ISSUE 12 • 2013 www.sps-aviation.com Civil Regional Aviation

LCCs to Boost Air Connectivity Low Cost Carriers in Asia-Pacific will continue to be one of the The players in the primary engines of market liberalisation and growth in the region. Such growth will be largely pursued in trunk markets with three segments increased competition. As markets become more liberalised and trunk markets mature, airlines will require 61 to 120 seat aircraft 30-60 seat 61-90 seat 91-120 seat to optimally serve these markets. The Asia Pacific market consists capacity capacity capacity mostly of secondary markets with low and medium demand den- ERJ-135, 140, 145 Embraer 170, 175 Embraer 190, 195 sities (20 to 300 passengers Per Day Each Way – PDEW). Over half CRJ–100, 200, 440 CRJ 701, 705, 900 A318 of the flights below 3,500 km in Asia Pacific take off with fewer 328Jet Antonov An-148 B737-600 than 120 passengers onboard, whereas 67 per cent of the single- aisle aircraft flying today have over 120 seats. The majority of Yak-40 Tu-134 CRJ 1000 secondary markets have medium-haul distance profiles that are BAe-146-100, -200 Superjet 100 better suited for up to 120 seat jets than turboprops. Avro RJ70 and B717, 727-100, Embraer states that 35 per cent of secondary markets in RJ85 737-100, 200, 500 Asia Pacific are not served non-stop, and more than half of all markets served do not allow for same day (return) travel. Since Fokker F28, F70 Fokker F100 bilateral restrictions limit service improvement to secondary DC-9, 10, 20 BAe 146-300 markets and higher density trunk markets are still growing ARJ-21 Avro RJ100 at attractive rates, airlines in Asia Pacific are not optimised MRJ 90 DC 9-30, 40, to serve low and medium-density routes. Secondary markets MD 87 will experience faster growth rates than trunk markets. There- fore, some of these secondary markets will grow to be dense Yak-42, BAC 111 enough to sustain optimised service by narrow body equip- CS100 ment. Nevertheless, at forecasted growth rates, the majority of Asia Pacific markets will still be in the medium-density range (between 50 and 300 PDEW). MARKET SHARE Embraer forecasts a need for 505 new aircraft in the Asia Pacific region during the next 20 years, 64 per cent of these Last Update: september 30, 2013 units to support growth and 36 per cent to replace older generation aircraft. The 30 to 120-seat jet fleet will increase from Manufacturer Net % 0%...... Airbus Orders 185 units in 2011 to 505 by 2031. 0%...... Antonov Airbus 0 0% 12%...... Bombardier China Connecting Hinterland Antonov 2 0% China is a key market and the aerospace majors are positioning Bombardier 56 12% 39% ...... Comac/AVIC themselves to capture this market. Presently, the Chinese gov- Comac/AVIC 185 39% ernment is hoping to stimulate traffic to less developed regions Embraer 203 43% 43% ...... Embraer in the central and western regions thus opening up the aviation Mitsubishi 15 3% sector further. Jets with fewer than 120 seats account for only Sukhoi 15 3% 3%...... Mitsubishi nine per cent of the Chinese single-aisle fleet, which is insuffi- 476 3%...... Sukhoi cient for regional operations. In comparison, in the US the per- centage is about 30. Deliveries Opportunities abound as three quarters of Chinese domes- Boeing 6 2% 2%...... Boeing Bombardier 63 24% tic market consists mostly of low and medium density demand 24%...... Bombardier between 20 and 300 PDEW which are best served by aircraft Embraer 193 72.5% lower than 120 seats. Embraer forecasts a need for 1,005 new Sukhoi 4 1.5% aircraft in China during the next 20 years. Considering these 266 72.5%...... Embraer trends, Embraer is positioning itself well globally to address Jet production in seat segment: 30-60; the growing demand. It is quite a competition for aerospace 61-90; 91-120, Region: Asia Pacific+China 1.5%...... Sukhoi majors in each of the seat segments – 30 to 60 seat capacity; 61 to 90 and 91 to 120. The Embraer family of jets has been strategically placed in the 30 to 120 seat segments and the marketing has been security at 21 per cent and other business at two per cent. The aggressive. The accumulated net orders for Embraer as of Sep- total 2013 Investment is expected to be $580 million, of which tember 2013 for Asia-Pacific plus China region were 203 and research will represent $100 million, product development the accumulated net deliveries were 193. In terms of deliver- $300 million and CAPEX $180 million. With growing demand ies the nearest competitor was Bombardier with a figure of 63 for regional aircraft, Embraer’s firm order backlog totalled while the accumulated net orders were 185 of the nearest com- $17.8 billion, reflecting an increase of 4.1 per cent from the last petitor – Comac. By the end of this year, Embraer expects to reported quarter. This marked a four-year high in the compa- deliver 90 to 95 commercial jets globally for which the company ny’s backlog history. In terms of aircraft breakdown, Embraer’s has been aggressive in its marketing. The company expects to order backlog comprises 140 E-175; 100 E-175-E2; 78 E-190; achieve total net revenues between $5.9 billion and $6.4 billion 25 E-195-E2; 22 E-195 and 6 E-170 jets. with commercial aviation contribution being as high as 52 per Not for nothing, is Embraer the world’s third largest com- cent, followed by executive aviation at 25 per cent; defence and mercial aircraft manufacturer after Boeing and Airbus. SP

www.sps-aviation.com ISSUE 12 • 2013 11 Civil Business Aviation

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

Designed to establish a new class in the executive jet category offering high end technology with extraordinary performance at low operating cost, the Legacy 450 is designed to carry up to nine passengers over 2,300 nautical miles FACTFILE: legacy 450 By Air Marshal (Retd) B.K. Pandey P hotographs: E mbraer

12 ISSUE 12 • 2013 www.sps-aviation.com Civil Business Aviation

The Embraer Legacy 450 business jet began as a con- cept dubbed as the mid-light jet (MLJ) first made public at the LEGACY 450 AT A GLANCE National Business Aviation Association (NBAA) Convention in 2007. On this occasion, Frederico Fleury Curado, the Chief Exec- Passengers 9 utive Officer (CEO) of Embraer, described the new business jet Crew 2 to be not an ordinary run-of-the-mill product but a true “game changer”. Later, the Legacy 450 was formally acknowledged at Range 2,300 nm (4,260 km) the European Business Aviation Conference and Exhibition held Maximum cruising speed Mach 0.82 in May 2008 where Embraer unveiled a mock-up of its new midsize business jet the Legacy 500. Cabin length 24 ft The slightly smaller Legacy 450 is meant to fill the gap Cabin height 6 ft between the very light Phenom 100 and the Phenom 300 mod- Cabin width 6 ft 10 in Tels, both of which are already flying in significant numbers across the world. On October 23, 2013, at the National Business Aviation Association (NBAA) Convention & Exhibition, while unveiling the interior of the new Legacy 450, Jay Beever, the Vice President of Marketing and Interior Design, at Embraer, commitment to deliver distinctive business aircraft, both the said that the Legacy 450 was the result of the relentless pur- Legacy 450 and the Legacy 500 will offer an above premium suit of ergonomics, craftsmanship, economics and attention to travel experience to our customers.” detail. The interior was a culmination of many years of hard The cockpit of the Legacy 450 offers state-of-the-art Rock- work, innovation and craftsmanship. well Collins Pro Line Fusion avionics. The four large active- matrix LCDs in the panel connect the pilots with synthetic Superior Performance enhanced vision with an optional head-up display, electronic Designed to establish a new class in the executive jet category charts, maps, graphical weather depiction from an intuitive offering high end technology with extraordinary performance at multi-scan weather radar system that sees up to 300 nauti- low operating cost, the Legacy 450 is designed to carry up to nine cal miles out and an airport surface-management system that passengers over 2,300 nautical miles (4,300 km). The range of minimises the chances of making a wrong turn or colliding with the Legacy 450 has been increased to 2,500 nautical miles with another vehicle on the ground, even when visibility is limited. four passengers, 200 nautical miles farther than its initial speci- The system minimises pilot workload while incorporating data fication. The aircraft is powered by two Honeywell HTF7500E from just about every known safety system. The MultiScan series engines, each delivering 6,540 pounds of thrust with weather radar has the predictive capability to guide pilots not which the aircraft can climb up to 43,000 feet after takeoff in just around bad weather but over it. Fusion can grow to accom- just 22 minutes. It is capable of operating from short runways modate developing technology add-ons such as voice recogni- thus giving access to more airports around the world. It has a tion, surface guidance and automatic dependent surveillance- full stand up flat floor cabin and a fuselage cross section that broadcast (ADS-B), the future of air traffic control. provides unprecedented cabin space for aircraft in this category. Passengers on the Legacy 450 will be treated to Honeywell’s high-definition ovation select cabin management system which State-of-the-art Technology allows for control of entertainment, communications, lights, tem- The aircraft has full fly-by-wire flight controls (FBW) wherein perature, window shades and more via drink-rail-mounted units, the traditional control yokes have been replaced by side sticks wireless handheld remotes or a galley touch screen. The system connected to an FBW flight-control system. The clean-sheet can interface with high-speed satellite communications and a vari- design of the Legacy 450 made it possible for integration of ety of consumer electronics, including iPods, MP3 players, Apple the first FBW control system ever in a mid-light jet that offers TV and gaming systems. Moreover, it is built on an Ethernet back- advantages for the crew by way of reduced stress and provides bone and offers extensive diagnostic and troubleshooting capabil- for smoother flight for passengers. This system eliminates the ity. Ovation’s media interface also hosts the optional JetMap3HD mechanical linkages between the flight controls and the flight- moving map applications and provides news, weather and sports control surfaces i.e. ailerons, rudder, updates. Ovation uses high-end Rosen elevator and spoilers. Control inputs HD monitors and Alto audio compo- by the pilot are combined with sen- nents. The aircraft pressurisation sys- sor inputs and computerised flight- Passengers on the Legacy 450 tem keeps cabin altitude at a comfort- control laws for crisper and faster able 6,000 feet at the 450’s maximum responses that do not deviate from will be treated to Honeywell’s cruising altitude of 45,000 feet. the aircraft’s performance envelope. high-definition ovation select Project Status Designed for Efficiency cabin management system The Legacy 450 cabin and cockpit and Comfort which allows for control of was displayed for the first time at the At the press conference at the NBAA entertainment, communications, NBAA Convention in Orlando, end Convention & Exhibition 2013, October 2012. Originally scheduled Ernest Edwards, President, Embraer lights, temperature, window for entry into service by the end of Executive Jets declared: “The Legacy shades and more via drink- 2013, the Legacy 450 is still under 450 will be the best-in-class mid-light development. It is to undertake its executive jet. We never stop listen- rail-mounted units, wireless maiden flight soon and is expected to ing to our customers’ input. Thanks handheld remotes or a galley be certified by late 2014 with service to their invaluable feedback and our touch screen entry thereafter. SP

www.sps-aviation.com ISSUE 12 • 2013 13 business aviation Interview

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

SP’s Aviation (SP’s): What are the unique features of Falcon 2000S? Gilles Gautier (GC): The Falcon 2000S offers handling and airport performance, lower operating costs and a sticker price equivalent to a smaller, super mid-sized jet but with the large cabin comfort of a Falcon 2000.

SP’s: How would you compare the 2000S with the 7X? GG: The 3,350 nm Falcon 2000S is our new entry level Falcon, based on the proven Falcon 2000 twin-jet platform, launched in the mid 1990s. More than 500 Falcon 2000 jets have been delivered to date, making it the most popular aircraft in its class. The long range 5,950 nm 7X is a tri-jet and Dassault’s top-of-the- line aircraft. It features a brand new wing and a digital flight control system – the first ever installed on a purpose-built Business Jet. Some 200 7Xs have been delivered since its certification in 2007.

SP’s: Can you tell us what kind of price tag the 2000S comes with? GG: The list price is $26 million for a fully equipped aircraft featuring interiors by BMW Designworks USA.

SP’s: Who is the lucky Indian customer that will operate the new aircraft ? GG: Our policy is to refrain from disclosing the names of our operators.

SP’s: How is the Falcon 2000S fairing in other markets? Which is the most promising market at this point of time? GG: Ten Falcon 2000Ss have been delivered since its certification last March. The airplane is selling well all around the globe.

SP’s: As one of the key OEMs, does the issue of pilot training concern you? Can you suggest remedies? GG: Pilot training and safety have been at the centre of the Falcon design since the first Falcon flew 50 years ago. The EASy cockpit that equips all our new model aircraft was conceived to optimise pilot performance by simplifying flight management tasks, improving crew coordination and providing unsurpassed situational awareness. And through partner companies, we offer state-of-the-art training that ensures pilots are fully equipped to fly our aircraft at all times.

SP’s: Can you indicate the maximum speed, attitude and non-stop range of the Falcon 2000S? GG: At Mach 0.80, the Falcon 2000S can fly 3,350 nm non-stop with six passengers and can climb direct to 41,000 feet in 19 minutes. Typical city pairs include Mumbai-Singapore and Delhi-Beijing. The aircraft is

hs: Dassault Falcon Photogra p hs: Dassault equipped with winglets and full inboard slats that permit it to land and

14 ISSUE 12 • 2013 www.sps-aviation.com business aviation InterView

Specifications Maximum number of passengers 8-10 Maximum range 3,350 nm takeoff at steep angles and low speed even at high altitude and under high temperature conditions. It needs just 2,315 feet of runway to land Maximum operating speed VMO 370/350 kias – better than any super midsize jet and even comparable to some turbo- Maximum operating Mach MMO M .862 / M .85 prop aircraft. Maximum operating altitude 47,000 ft SP’s: What is so special about EASy II avionics? External dimensions GC: The EASy II suite provides a number of new standard options, Length 66.33 ft including a Synthetic Vision System, XM weather, dual Jeppesen charts, Runway Awareness and Advisory System and ADS-B out features and Height 23.17 ft WAAS and EGNOS LPV approach capability. EASy II also offers improved Wing span 70.17 ft display symbology and important flight management system enhancements. Internal dimensions Cabin length SP’s: What kind of sales and delivery figures do you foresee for the (excluding cockpit and baggage) 26.17 ft Falcon 2000S in India over the next 10 to 15 years? GG: Owing to the poor global economy, fluctuation of the Indian Rupee Maximum headroom 74.00 in and inflation, Falcon sales in the Indian region have not met our expec- Maximum width 92.00 in tations in recent years. However, the future of both, the Indian market Cabin volume and Business Aviation in general look very promising. We believe that (excluding cockpit and baggage) 1,024.00 cu ft sales will pick up in the years ahead, reinforcing our leadership position in the country. We have made large investments in our customer service Weights infrastructure so that we will be ready for this anticipated growth in aircraft sales. Maximum takeoff weight 41,000 lb Maximum zero fuel weight 29,700 lb SP’s: How about after sales support and maintenance solutions – are Maximum fuel 14,600 lb you also expanding your network on this front? Maximum landing weight 39,300 lb GG: Dassault has established a comprehensive customer service network in India, including two authorised service centres in Mumbai; service Engines centres in Delhi and Hyderabad; spares depots in Mumbai and Chennai and a liaison office in Delhi that provides dedicated support for both Manufacturer P&W Canada Falcon and Mirage 2000 fighter aircraft. There is also a technical office Nbr/Type 2 x PW308C in Mumbai. Further afield, Dassault has customer service centres in Sin- SL-ISA Thrust 7,000 lb gapore, Shanghai and Dubai and a global network of nearly 50 facilities around the globe. SP

www.sps-aviation.com ISSUE 12 • 2013 15 Civil regional aviation AIR COSTA - a kickstart!

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

By R. Chandrakanth

At a time when the airline industry in India is not in a happy plans to set up a Maintenance, Repair and Overhaul (MRO) facil- state, a business group from Andhra Pradesh unknown in the air- ity at Gannavaram Airport near Vijayawada by 2015. Presently, line industry has dared to enter the fray. On October 14 this year, its maintenance centre is at the Chennai International Airport. Vijayawada-based Lingamaneni Estates Private Limited (LEPL The airline has leased two E170 jets from ECC and the third Group), which is into real estate and other businesses, launched is due from GECAS soon. The plan is to have five E170s and Air Costa, with its first flight between Hyderabad and Vijayawada. E190s by the end of 2013, ten by 2014 and a total of 25 aircraft This move is set to boost regional aviation, which on the Indian by 2018. Presently, Air Costa has operations from Ahmedabad, aviation scene, for some reason or the other, has been flounder- Bengaluru, Chennai, Hyderabad, Jaipur and Vijayawada. Chen- ing. The airline, which initially planned to commence operations nai is planned to be the operations hub of the airline. In the with a fleet of Bombardier Q-400 aircraft, subsequently plumped near future, there are plans to connect Visakhapatnam, Goa, for the Brazilian Embraer E170 jets that dominate the global Madurai, Thiruvananthapuram and Mysore. regional aviation scene. Air Costa presently has in its fleet two “We are adopting an operational strategy wherein we would Embraer E170 aircraft, a third on lease and is buying one E190 be focussing mostly on under-served and lesser competitive soon to take its initial route connectivity up from four to eight. It routes,” Air Costa Chairman Lingamaneni Ramesh stated ahead may be mentioned here that Embraer has bounced back in India of the launch. Air Costa will have unconventional city-pairs con- after the closure of Paramount Airways that operated E-Jets. necting Tier-II and Tier-III cities, looking at routes not served by With plans to tap the hinterland market by connecting Tier established carriers. It plans on having pan-India operations II and Tier III cities in India, Air Costa has announced an ambi- by 2015, with 14 routes and connect 25 destinations in three tious investment plan of $150 million by 2015. The group first years from then. Air Costa will follow a flexi-fare system with received a no objection certificate from the Ministry of Civil the lowest fare being `3,000. The aircraft is configured to seat AviationA in February 2012, and in June 2013, at the Paris 67 passengers in economy and economy plus class. Air Show, Le Bourget, it announced its intention to go in for Currently, the low-cost airline has about 300 employees Embraer jets. Having received its Air Operators’ Permit (AOP) including foreign pilots and engineers. According to Deepak from the Directorate General of Civil Aviation (DGCA) in Sep- David, financial adviser to LEPL, air travel is expected to grow

Photogra p hs: Embra e r tember 2013, Air Costa commenced operations in October with steadily in India with a compound annual growth rate of 20 per

16 ISSUE 12 • 2013 www.sps-aviation.com Civil regional aviation

These are the non-trunk routes that Air Costa will tap into.” Presently, John Slattery, Chief Commercial Officer (CCO), Embraer Com- mercial Aviation said, “We are delighted that Air Costa has chosen Air Costa connects: the E-Jets for their operations. The aircraft are sure to promote greater regional connectivity in India.Embraer has always main- Chennai-Ahmedabad Daily tained that the regional aviation market in India has tremen- Chennai-Hyderabad Daily dous potential. Our E-Jets are the right sized aircraft for service Chennai-Jaipur Daily between secondary and tertiary markets which are underserved and are, in fact, growing faster than metro markets.” Chennai-Jaipur (Via Hyderabad) Daily “Air Costa has chosen E-Jets for their efficiency and reli- Ahmedabad-Chennai Daily ability. Our plan is to link underserved markets in India with Bangalore-Jaipur Daily more direct flights,” said Captain Babu, CEO – Air Costa. “The Bangalore-Vijayawada Daily E170 and E190 jets are ideal in size and range. We can add frequencies and routes without adding too much capacity, thus Hyderabad-Chennai Daily serving places with seasonal demand, as well as key secondary Hyderabad-Jaipur Daily and tertiary business centres.” Jaipur-Bangalore Daily “Regional services have a lot of potential in India especially as Jaipur-Chennai Daily the economy of South Indian cities is booming. We are committed to further growth in the Indian market with additions to our fleet Jaipur-Chennai (Via Hyderabad) Daily and launching new routes over the medium term,” said Ramesh Jaipur-Hyderabad Daily Lingamaneni, “We are very pleased with the support that Embraer Jaipur-Vijayawada Daily has provided to date for the launch of our Air Costa and we look forward to a long successful and mutually rewarding relationship.” Vijayawada-Bangalore Daily Founded in 1983 by first-generation entrepreneur LP Bhas- Vijayawada-Jaipur Daily kar Rao, the privately-held Lingamaneni group, has tasted success in real estate and construction business. The group has completed many real estate projects in Vijayawada and is cur- cent. This is expected to see the air traffic cross 70 million by rently building a satellite township project in an area of 32 mil- 2014. Rapid urbanisation has led to the burst in traffic between lion square feet with an investment of close to a billion dollars, metros and non-metros, he said, adding there was scarcity for according to media reports. The group’s website says it also has a regional and charter operations in South India. “There is a huge presence in other sectors such as renewable energy, health care, market potential in such point-to-point and feeder routes, which education and hospitality. It remains to be seen how the group’s offer 59 per cent of potential revenue per kilo metres (RPKMs). fledgling airline is going to navigate through turbulent skies. SP

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

www.sps-aviation.com ISSUE 12 • 2013 17 CiviL Interview EMBRAER - THE GAME CHANGER IN INDIA

At a time when commercial airlines in India are struggling, we see a couple of new ones getting into the airline business with different revenue models. Will it work? Only time will tell. However, from an unknown quarter in aviation, Vijayawada, we see the birth of yet another low cost carrier – Air Costa. The Chief Executive Officer of Air Costa, Captain K.N. Babu in an interview with R. Chandrakanth, spells out the plans of the airline, without divulging details of the investments made by the promoters, LEPL Projects (formerly Lingamaneni Estates (P) Ltd.).

SP’s Aviation (SPs): Presently, the airline figuration economics work for a low cost business in India is one of the sectors airline? If yes, how? where investor confidence is low. Despite Babu: We plan to operate on the regional that, you have ventured to start Air Costa, routes that are not suitable for the bigger what gives you hope? jets. These routes are presently being catered Captain K.N. Babu (Babu): The following are to by smaller turboprop aircraft which are the market drivers that we considered along not comfortable and take longer to travel. with our strength (LEPLs) to enter into aviation: Our jets will be a huge game changer on • Air travel is expected to grow steadily; air these thin routes. traffic set to cross 70 million by 2014 • Rapid urbanisation in Tier II and III cities SP’s: Air Costa has announced connections • Favourable government policy for invest- to and from Vijayawada, Jaipur, Bangalore, ment by foreign carriers up to 49 per cent “The aviation market Hyderabad, Chennai and Ahmedabad? Are • Development of Tier-II and -III cities air- is poised to grow all connections operational and what has port infrastructure steadily and we been the response? • Government initiative to reduce fuel costs would like to tap Babu: Yes, we are operational and we are • Government approval for ancillary rev- into this growth.” seeing good loads on all these routes. We are enue – potential for a sizeable revenue in —Capt. K.N. Babu, planning to expand through additional fre- the next two years CEO, Air Costa quency and also adding newer routes. • Exemption of sales tax on direct import of aviation turbine fuel (ATF) SP’s: You have announced that you will go • Landing waivers for aircraft such as E170 for a pan-India licence. Will this be biting that have fewer than 80-seat capacity off more than you can chew? Babu: Our strategy to operate pan India would give us better SP’s: One of the major hindrances for growth of regional flexibility in route planning and also profits through route ratio- aviation in India is lack of airport infrastructure and high nalisation. The aviation market is poised to grow steadily and costs at certain airports. How do you see yourself in such a we would like to tap into this growth. scenario? Babu: The Government has recently taken many steps to SP’s: Can you outline the aircraft delivery schedule? Also develop aviation infrastructure in the country. There is a big can you indicate what kind of fuel efficiency these E-Jets move to privatise many major of the airports being operated have promised? by the Airports Authority of India (AAI). The Government has Babu: Our aircraft are fuel efficient for the sectors that we plan also announced plans to develop many Tier II and III airports to operate. We plan to expand to 25 aircraft in the next five to and since we plan to operate in this sector, we hope to benefit six years’ time. by this move. SP’s: What is your target for market share and where do SP’s: Air Costa is betting big on Embraer’s E-Jets, is it all you expect it to come from? about ‘right-sizing’ of seat configuration? Will the seat-con- Babu: We plan to target the growing Tier II and III cities. SP

18 ISSUE 12 • 2013 www.sps-aviation.com Civil Market

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

CIVIL AVIATION 2014: CAUTIOUSLY OPTIMISTIC

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

By R. Chandrakanth

Will 2014 bring cheer to the civil aviation industry? It is tor General of IATA, Tony Tyler had stated that IATA was revis- an emphatic “Yes” based on the mega deals worth $200 bil- ing the industry outlook to a profit expectation of $11.7 billion, lion concluded in the opening days of the Dubai Airshow signal- downgrade by $1 billion announced earlier in the year. “That is ling that the sector was once again taking off. Surely, there is because the industry situation is not improving as quickly as we an upswing in the civil aviation industry and notwithstanding had expected. But, I should stress that it is an improvement on the some bad patches, the overall outlook is positive. The Interna- 2012 profit of $7.4 billion. We expect a further strengthening by tional Air Transport Association (IATA), the Airports Council the year end that will set the industry up for $16.4 billion profit International (ACI) and the International Civil Aviation Organ- in 2014. This would make 2014 the second strongest year this isation (ICAO) have understandably all been cautiously optimis- century after the record breaking $19.2 billion profit in 2010.” tic as the industry is emerging from a major recession. Then all Similarly, ICAO has indicated that global air passenger traf- of a sudden we see shifting of gears, a la Dubai, with nearly 500 fic is expected to grow by 5.9 and 6.3 per cent in 2014 and airplanes, predominantly Boeing and Airbus, ordered by differ- 2015 respectively. In 2012, it grew by 4.9 per cent reaching 5.4 ent carriers to be delivered in the next few years. If this is not trillion passenger kilometres performed (PKPs). This year, it is an indication of resurgence, nothing else is. expected to be a point lower at 4.8 per cent.

Good Times Ahead Forecasts Indicate Growth IATA’s assessment made before the Dubai Airshow had an Despite the regional turmoil and a pessimistic short-term eco-

P hotograph: A ir B us Wundercurrent of caution. The Chief Executive Officer and Direc- nomic outlook, airlines in the Middle East should continue to reg-

www.sps-aviation.com ISSUE 12 • 2013 19 Civil market

improvements in the US economy as well as a stabilisation in Air Traffic Medium-Term the Eurozone. Although load factors are high (around 80 per cent), we have seen little improvement in yields.” Forecasts till 2015 TyIer continued, “In 2014, we expect the pace of growth to pick-up to around 5.8 per cent. We do not, however, see any International and Domestic Traffic Passenger- good news for passenger yields. In fact we expect a fall of about kilometres performed (PKPs) 0.5 per cent next year. The cargo business is a completely different story. The mar- Annual Growth Rates (%) ket is flat – with demand growth of just 0.9 per cent this year. As the supply side of the equation is driven to a large extent 6.3 6.6 5.9 by developments in the passenger business, we expect cargo yields to fall by 4.9 per cent this year. For 2014, we do see an 4.9 uptick, largely resting on the indications of improving business 4.8 8 confidence. The expectation is for demand growth of 3.7 per 8.7 cent. But yields are expected to deteriorate by a further 2.1 per 11.1 8.6 cent. To add some context to the cargo situation, cargo revenues 7.6 3.8 peaked in 2011 at $67 billion. This year we expect revenues of 3.3 1.3 only $59 billion. And that will increase to $60 billion in 2014. So 2.4 6.8 basically revenues are back at 2007 levels.” 2.3 6.4 6.4 7.1 5.5 Fuel Costs Tyler also stated, “If we look at the cost side of the business, the biggest item is fuel. We expect it to be 31 per cent of costs 11.2 10.8 this year and 30 per cent in 2014. Jet fuel should fall slightly to 9.2 13.7 10.2 $122.9 in 2014. A decline is good news, but the price is still high. The average price for jet fuel in 2004 was $49.70 per barrel.”

5.7 6 0.9 5.2 North America, Europe Bouncing Back 4.2 9.5 IATA expects North American carriers to deliver a combined 6.2 profit of $4.9 billion this year - increasing to $6.3 billion in 4.4 5.5 3.9 2014. Consolidation and international joint ventures are driv- 2011 2012* 2013 2014 2015 ing efficiency gains. Consumers are benefitting from expanded networks as well as significant investments in product improve- history Forecasts ment. The stabilisation in the Eurozone and strength in long- Region of State’s AOC Holders haul markets should see profits rise to $1.7 billion this year and Europe Middle East North America World further to $3.1 billion in 2014. It is moving in the right direc- Africa Asia/Pacific Latin America/Caribbean tion, but that is far from being healthy, said Tyler.

* Preliminary figures (ICAO) Asia-Pacific It is the only region where IATA expects profits to decline in 2013 compared to 2012. In 2012 Asia-Pacific carriers made ister the fastest traffic growth with a 10.2 per cent increase over $4.0 billion. That will decline to $3.1 billion this year and par- 2012. This forecast is based on the strong performance of its larg- tially recover to $3.6 billion in 2014. IATA notices a strengthen- est air carriers in gaining market share on international routes. ing of the Japanese industry as a result of re-structuring and The airlines of Latin America/Caribbean, Asia/Pacific and domestic market strength in China. Asia-Pacific carriers are the Africa are expected to register 7.6, 5.5 and 5.2 per cent growth in biggest players in air cargo. Consequently, they are suffering the 2013, respectively. Passenger traffic in Europe and North Amer- most from the stagnation in cargo markets. And the weakness ica should increase by 4.4 and 2.3 per cent in 2013, respectively, in India is also a drag on the region’s prospects. leading to a slightly higher share of traffic for European carriers than for North American operators. The Asia/Pacific Region will Growth in Middle East remain the largest market. Current expectations of a 4.0 (2014) The Middle East – particularly the Gulf – is on an improvement and 4.5 (2015) per cent annual GDP at PPP growth rate for the trend. IATA expects a $1.6 billion collective profit in 2013 to world economy over 2014–2015 should translate into global air increase to $2.1 billion in 2014. Demand, driven by long-haul traffic growth of 5.9 and 6.3 per cent respectively. connections through the region’s hubs, continues to expand at a double digit pace. Passenger and Cargo Traffic In Latin America, the $600 million 2013 profit is expected to Optimism is on the passenger side of the business rather than grow to $1.1 billion next year. Long-haul markets to North America in cargo. Tyler stated that, “ Passenger business is showing are doing well. Connections to both Asia and Africa show promise. robust growth in demand – about five per cent. This is slightly But growth has been affected adversely by economic weakness in below the 5.3 per cent growth in 2012. In fact it is slightly dis- Brazil. Africa is facing stiff competition in long-haul markets and appointing that we are not maintaining that in 2013. Emerging is unable to efficiently develop intra-Africa markets. The region’s market growth in India, Brazil and to an extent China, has been carriers are hovering around break-even with a $100 million loss slower than anticipated. This has been somewhat balanced by in 2013 expected to improve to a $100 million profit in 2014.

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Profits Anticipated The outlook reflects an approximate three to four per Tyler said “I must remind everyone that even with the over- cent increase in projected delivery value over the 2012 fore- all improvement expected in 2014, the buffer between profit cast. Despite slightly lower unit deliveries, the expected value and loss is very small. If we divide a $16.4 billion profit among comes from price increase and change in expected business 3.3 billion travellers, you will see that airlines will make about jet delivery mix, which reflects preference for larger business $5 per passenger. New taxes and more onerous regulation can jet models. quickly erode that. So things are improving, but we are not yet “2014 industry deliveries are anticipated to be up modestly, at sustainable levels of profitability.” reflecting recovery in supply-side constraints and some gains “Overall, the story is largely positive. Profitability contin- linked to the projected pace of global economic recovery,” said ues on an improving trajectory. But we have run into a few Rob Wilson, President, Honeywell Business and General Aviation. speed bumps. Cargo growth has not materialised. Emerg- Honeywell found that the operators plan to make new jet ing markets have slowed. And the oil price spike has had purchases equivalent to about 28 per cent of their fleets over a dampening effect. We do see a more optimistic end to the the next five years either as a replacement or additions. This year. 2014 is shaping up to see profit more than double com- level of interest has been largely stable for the past four survey pared to 2012,” he added. cycles and compares favourably with results of 25 per cent or Airlines are expected to see a significant boost in 2014 with less that was the norm until 2006. Of those new business jet profits of $16.4 billion in revenues totalling $743 billion. Ris- purchases, 19 per cent are intended to occur by 2014, with ing business and consumer confidence levels should indicate larger shares of more than 22 per cent each year scheduled for an uptick in the global business cycle (2.7 per cent GDP growth 2015 and 2016. is expected) which has a direct impact on airline profitability. Higher purchase expectations continue to focus on larger cabin aircraft classes ranging from super-midsize through the Profitability in All Regions ultra-long range and business liner, implying these types of IATA expects slightly more robust passenger growth (5.8 per aircraft will command the bulk of the value billed from now cent) and a significant improvement in cargo growth to 3.7 per until 2023. cent. Yields, however, for both passenger and cargo markets are Avinode Business Intelligence forecasts a positive year for expected to continue to fall by 0.5 per cent and 2.1 per cent the business aviation markets in Europe and the US in 2014. respectively. The company projects a 0.7 per cent increase in business jet All regions will see improved profitability, but divergence in flights in the US next year, with positive numbers across most of performance will remain. the regions. In Europe, despite several years of negative growth, • 2014 is expected to be particularly strong for North Ameri- Avinode predicts that the market will remain flat in 2014 with can carriers ($6.3 billion net profit, the industry’s strongest) a marginal 0.1 per cent growth. In conclusion, both commercial as the economy improves. Capacity discipline is expected to and business aviation have bounced back and expect much bet- see yields improve, bucking the global trend. ter performance in 2014. Emerging markets of India, China, • European carriers are also expected to see a near doubling Brazil and a few African and Latin American countries, will be of profits to $3.1 billion (although even this will only gener- the key drivers of growth. The industry has shown resilience ate an EBIT margin of 1.9 per cent with only African carri- and optimism, hence the positive outlook. SP ers being lower). • Asia-Pacific is expected to see a modest improvement in profitability to $3.6 billion, largely on the back of improved cargo performance, the growing Chinese domestic market and the benefits of restructuring in Japan. • Middle East carriers are expected to post a $2.1 billion profit (their highest ever). • Carriers in Latin America are expected to see profits rise to $1.1 billion. • African airlines are also expected to return a combined profit of $100 million. Even with the significant improvements expected for 2014, an industry profit of $16.4 billion implies a return on invested capital of just 5.2 per cent. That remains significantly below the industry’s weighted average cost of capital which is hovering between seven and eight per cent.

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

www.sps-aviation.com ISSUE 12 • 2013 21 Show report Dubai AirShow 2013

stunning the world

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

22 ISSUE 12 • 2013 www.sps-aviation.com Show Report Dubai AirShow 2013

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

By R. Chandrakanth, dubai

The world aviation scenario is fast changing and the tional A-380 order cements Emirates, already the largest opera- Middle East region is racing towards becoming an aviation tor of this aircraft type, as the principal customer for the A-380 hotspot. The credit goes to the Arabs who are using not just the worldwide. These latest orders bring Emirates’ total firm order petro-dollar to great effect, but also their vision, their foresight book to 385 aircraft (excluding options), comprising 214 Boeing and their astute investment sense. And the tallest of the Arab is 777s, 101 Airbus A-380s and 70 A-350s for $166 billion. the ruler of Dubai (also the Vice President and the Prime Min- “Air transport is a key enabler of world trade and we see that ister of UAE), Sheikh Mohammed bin Rashid Al Maktoum. Led demand for aviation services will continue to grow globally. What by Emirates airline and the Dubai World Central International we are announcing today is a continuation of our commitment Airport, both soaring to great heights, the region is being trans- and vision to connect the world through our efficient hub in the formed as major international aviation hub. Not just Dubai, but Middle East. Emirates’ aircraft orders today, with deliveries of also Abu Dhabi which is home to Etihad Airways; Doha which the 777X scheduled to start in 2020, will take us to 2025 and prides Qatar Airways; and other capitals such as Muscat, Bah- beyond, replacing aircraft due for retirement and providing the rain, Jeddah are up there, making waves. foundation for future growth,” said Sheikh Ahmed bin Saeed Al- There are many obvious advantages for Middle Eastern car- Maktoum, Chairman and CEO, Emirates Airline and Group. riers, the foremost being fuel (35 per cent of airline’s operating costs) which is cheaper than the rest of the world. Airlines that Flagship of Emirates Fleet Ahave operating hubs in the Middle East benefit substantially. Emirates currently operates the world’s largest fleet of A-380 Another advantage is employee costs (16 per cent of airline’s with 39 in service. Its order for 50 additional A-380s brings the operating costs) and most of the employees are expatriates. So total A-380 order to 101 aircraft, worth $45 billion. A combina- there is a race not just among the airlines of the Middle East but tion of two and three-class cabin configuration, the first 25 of also others who want to capitalise on these advantages. these latest A-380 aircraft orders are scheduled to be delivered before the first quarter of 2018. “The A-380 continues to be the Tsunami of Orders flagship of our fleet and after five years in operation, it remains It was a tsunami of orders from the Middle Eastern carriers that highly popular with our passengers,” said Tim Clark, President hogged the limelight signalling the return of good times. Emir- Emirates Airline. “This latest order will help us meet both fleet ates made a record-breaking announcement of a 200-aircraft expansion and replacement needs.” deal (150 Boeing 777X and 50 Airbus A-380) for $99 billion. Emirates said it is the, “largest ever aircraft order in civil Etihad Mantra - Organic & Inorganic Expansion aviation and also its largest order announced at any event Unlike Emirates, the Abu Dhabi-based Etihad Airways has to date.” The agreement was signed at the Dubai Airshow by taken on the route of organic and inorganic expansion. Etihad Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and CEO, ordered 56 new Boeing wide-body aircraft, with options and Emirates Airline and Group, with Jim McNerney, Chairman, purchase rights for a further 26. The deal included 25 next-gen- President and CEO, Boeing and Fabrice Brégier, President and eration Boeing 777X, 17 of which are 777-9X and eight 777-8X CEO, Airbus.Following closely were Etihad and Qatar Airways aircraft. It also ordered a further 30 Boeing 787-10 Dreamliners with the former ordering 199 aircraft (mix of Boeing and Air- and one Boeing 777-200 freighter making it the biggest cus- bus) and 294 engines, for $67 billion. Qatar Airways ordered tomer for the American jet. 50 Boeing aircraft worth $19 billion. It truly was an Arab rising Etihad also placed orders with Airbus for 50 A-350 XWB of the aviation kind and the Dubai Airshow is right at the top, and 36 A-320neo family aircraft, in addition to one A-330-200F nudging aside Farnborough and Le Bourget. freighter plus options for a further 30 freighters to support global expansion of operations. Emirates All the Way The President and CEO of Etihad, James Hogan said, “We Striding globally, Emirates is becoming a popular choice of trav- have announced 199 aircraft, 294 engines, positioning Etihad ellers worldwide, thanks to its connectivity, reasonable fares Ariways for the next decade of growth.” The total value of the and incomparable passenger experience. To meet the growing deals is over $67 billion. Deliveries would start in 2018. Engines demand, the airline is acquiring aircraft left, right and centre. ordered include 127 GE Aviation, 115 Rolls-Royce and 52 CFM. At the Show, Emirates ordered $99 billion worth of aircraft, Etihad’s aggressive buying falls into its 2020 plan to have over the Boeing 777X and the Airbus A-380 Superjumbo. Its sister 160 aircraft and nine fleet types that include ten Airbus A-380s airline “FlyDubai” weighed in with a $11.4 billion order for 111 and 41 Boeing 787 Dreamliners. The carrier aims to fly 25 million Boeing 737s and 737-800s. passengers annually to 120 destinations. In the history of US commercial aviation, Emirates placed Etihad’s strategy has been clear and aggressive, aiming to the single largest order for Boeing 777X by value and the addi- grow fast and wide for which it is in the process of acquiring

www.sps-aviation.com ISSUE 12 • 2013 23 Show Report Dubai AirShow 2013

key player: The world’s largest A380 customer, Emirates, expanded airlines and aircraft. It has equity stake in its total orders for Airbus’ 21st earned the trust of our partners and Air Seychelles, Air Berlin, Virgin Austra- century flagship jetliner with a customers here through meaningful col- lia, Air Serbia and Ireland’s Aer Lingus. It 50-aircraft booking signed at the laboration, contribution to the commu- Dubai Airshow; (right) The Airbus is about to close a deal for a 24 per cent Military A-400M airlifter was a nity and by providing the right products stake in India’s Jet Airways. first-time visitor at the Airshow. and services at the right time. We remain committed to further expanding our pres- Expansion of Qatar Airways ence and strengthening partnerships with With Emirates and Etihad on an expan- governments, enterprise and customers sion spree, Qatar Airways is not far behind. The Doha-based to support the development and growth of regional aerospace airline formally announced an order of 50 Boeing 777-9X, the infrastructure and capabilities.” first acquision of this variant. Currently, its fleet has various aircraft types including 51 Boeing 777s – extended range, long Airbus range and freighters, 37 of these are currently in service with Airbus’ commitment to cooperating with developing aerospace the remaining pending delivery. markets around the world was highlighted as the Middle East Qatar Airways CEO Akbar Al Baker said, “For Qatar Air- industry is playing a growing role in the company’s jetliners. This ways, the Boeing 777 is our flagship aircraft and the backbone includes partnerships with two UAE-based companies - Strata, of the fleet. Operational on many of the routes Qatar Airways a Mubadala company and Tawazun Precision Industries (TPI), a flies to, it is well admired by our crew and passengers alike.I It Tawazun subsidiary. Strata is supplying components for Airbus’ is simply a fantastic aeroplane.” A-330 wide-body aircraft and its 21st century flagship A-380 jet- Boeing Chairman, President and CEO Jim McNerney said, liner, while TPI is supplying parts for the A-320 and A-330. The “Boeing is proud to have Qatar Airways amongst the launch Airbus Military A-400M airlifter was a first-time visitor here. customers for the new 777X programme. Qatar Airways has enjoyed remarkable worldwide growth in recent years and we Iraqi Airways Picks Bombardier look forward to continuing to support the airline on its path to Iraqi Airways signed a purchase agreement with Canadian further success in the future.” manufacturer Bombardier which won orders and commit- Qatar Airways also placed a firm order for five new Airbus ments for 27 of its Q-400 turboprops and CSeries mainliner A-330-200 Freighter aircraft. These new aircraft will comple- jets. Among the biggest announcements was a purchase agreement the airline’s rapidly growing network, which includes more ment from Iraqi Airways to acquire five CS300s, with options than 40 routes that have dedicated freighter services. Included for another 11 valued at $1.26 billion. in the order are eight additional A-330-200F options which Low-cost Thai carrier Nok Air ordered two Q-400s and would make today’s deal worth over $2.8 billion for 13 aircraft. options for six totalling $258 million. “The extra capacity seat- ing option will give the Q-400 NextGen aircraft an advantage of Defence and Aerospace up to seven per cent fuel burn per seat and an overall operating With the Middle Eastern countries showing tremendous appe- seat cost advantage of up to 17 per cent compared to its closest tite for aerospace and defence, Boeing is zeroing in on this mar- turboprop competitor,” said Torbjorn Karlsson, Vice President - ket showcasing a range of products and services including a Sales, Bombardier’s Asia-Pacific division. United Arab Emirates (UAE) Armed Forces AH-64D Apache, an Middle Eastern aircraft leasing company Palma Holding AH-6i light attack/reconnaissance helicopter, a Qatar Airways also signed an agreement to purchase four Q-400s along with and Royal Brunei Airlines’ 787 Dreamliner and a ‘FlyDubai’ four options, a $282 million order. Abu Dhabi-based transport 737-800 featuring the Boeing Sky Interior and business class operator Abu Dhabi Aviation and Ivory Coast national carrier configuration. The Boeing P-8A Poseidon maritime patrol air- Air Côte d’Ivoire also signed agreements for two Q-400s each. craft made its international Airshow debut. “Our presence in the Middle East goes back decades,” said ATR Debut in Saudi Arabia

P hotographs: A irbus Jeffrey Johnson, President - Boeing Middle East, “We have ATR, the world’s leading regional turboprop aircraft manufac-

24 ISSUE 12 • 2013 www.sps-aviation.com Show Report Dubai AirShow 2013 turer, displayed its new generation ATR-72-600 in the livery of manufacturers understand the needs of the region. Unlike the Indonesia’s flag carrier Garuda. ATR had its first breakthrough open announcements of airlines, the militaries in the Middle in Saudi Arabia with Alpha Star Aviation Services becoming the East remain more insular. However, there is no denying the fact first operator of ATR-72-600s. ATR and GECAS also signed an that the Middle Easterners are among the top defence spenders. agreement for the acquisition of ten ATR-72-600s for a total The Saudi Arabia has the fourth largest defence budget in the value of $241 million. The agreement includes an order for five world, behind the US, China, and Russia. Valued at $52.9 billion carriers and an option for another five. The Saudi orders will be in 2013, Saudi Arabia’s defence expenditure is placed seventh delivered in 2014 while delivery to GECAS will begin in 2015. among the top military spenders and is expected to increase at a CAGR of 7.92 per cent to reach $77.3 billion by 2018. GE, RollsRoyce Sign Deals Other nations in the region are equipping themselves with GE Aviation and joint ventures landed a record level of busi- the latest of defence equipment considering the geo-politics of ness orders totalling $40 billion, another trade record. Emirates the region. UK Prime Minister David Cameron was present at airlines reached an $11 billion commitment to buy 150 Boeing the show, presumably pitching for Eurofighter Typhoon. UK is 777X aircraft, containing 300 GE9X engines. The 777X twin- competing with France for a potential 60-plane fighter jet deal engine aircraft and the GE9X engines are under development with the UAE that is currently engaged in a procurement com- by Boeing and GE Aviation respectively and are expected to petition to replace its 43 ageing Dassault Mirage 2000s. enter service by the end of this decade. Also included in the $40 billion orders for GE is $13 billion order for CFM International. Northrop Grumman Engine maker RollsRoyce Holdings PLC bagged a $5-billion Northrop Grumman Corporation highlighted a range of its order from Etihad Airways to provide engines and long-term global defence and security solutions, including airborne early support for 50 Airbus A350 XWB aircraft and a $300 million warning and control systems, aerial surveillance and fire con- order to provide engines and support to the five Airbus A-330s trol radars. “Northrop Grumman is proud of its long trusted of Qatar Airways. partnership with the UAE built over many years on a variety of programmes and capabilities,” said Douglas Raaberg, CEO MEBAA – Its Humanitarian Face Northrop Grumman, UAE.. The airborne The Middle East Business Aviation Asso- early warning capabilities of its E-2D ciation (MEBAA) signed a deal with the Advanced Hawkeye caught the attention United Nations World Food Programme of visitors. to donate $20 with every MENA private GE Aviation and joint flight. Ali Ahmed Al Naqbi, MEBAA’s ventures landed a record Lockheed Martin founding Chairman, said, “Our new ‘Fly Lockheed Martin was present at the air- and Feed’ programme is a commitment level of business orders show, hoping that it would hear from from MEBAA to support this most wor- totalling $40 billion. UAE with regard to the proposed sale of thy cause. The idea might have come out an additional 25 F-16E/F Block 60 Des- of this region, but it will become global, ert Falcon combat aircraft. US Defense through our association with the Interna- Secretary Chuck Hagel had stated ear- tional Business Aviation Council.” lier that the additional F-16 Block 60 “Many people perceive our industry as a tool for High Net- aircraft would be provided as part of a five-billion arms pack- worth Individuals. But this is not quite true. It is a tool for pro- age.. The UAE Air Force and Air Defence currently operate 55 ductivity and profitability. Our intention is to support the WFP, single-seat F-16E and 24 twin-seat F-16F platforms. a great cause. With this, we want to change the perception of Business Aviation,” he said. AgustaWestland Al Naqbi suggested the regional industry would be worth $1 Italian company AgustaWestland bagged orders from Dubai billion by 2018 and have 1,375 registered business aircraft by Police for five AW-169s and from the Dubai Air Wing for a single 2020, up from around 500 today. At the Dubai Airshow, about VIP-configured AW-189. AgustaWestland displayed mock-ups of one-third of the aircraft on display were Business Jets. The AW-169 and AW-189 helicopters. biggies such as Boeing and Airbus had their Business Jets too, while other players such as Beechcraft, Bell Helicopter, Bom- Dubai World Central Largest Airport bardier, Cessna, Dassault, Embraer, Gulfstream, Jetcraft, Nex- The Airshow was held for the first time at the city’s new $32 tant made their presence felt. million Al Maktoum International Airport which is expected to become the world’s largest airport on its completion in 2027. Embraer This year the show attracted over 1,000 exhibitors and over Embraer Executive Jets announced purchase agreement with 60,000 trade visitors, an increase of seven per cent from 2009. Arab Wings for Lineage 1000. The aircraft will join the super Sharief Fahmy, CEO, F&E Aerospace, the organisers of mid-size Legacy 600 and large Legacy 650 already with Arab the show said on the opening day, “Well it may have been yet Wings operating out of Jordan.. Delivery is scheduled for early another opening, but it certainly is not just another show. This 2014. “We are honoured by the confidence Arab Wings has has been an extraordinary opening morning for an event that shown in Embraer by selecting the Lineage 1000 to expand has gone beyond expectations.” its business aircraft fleet in the ultra-large category,” said Colin “If there was anyone left in the aerospace industry who had Steven, Vice President EMEA, Embraer Executive Jets. not recognised the undeniable importance of this region, this morning removed all doubt. We are in the centre of a region Military Aviation with the world’s fastest-growing aviation infrastructure, fastest- Though commercial aviation dominated the show, military growing airlines and a region where security commitments are aviation had its moments in the sun as the defence equipment in focus.” SP

www.sps-aviation.com ISSUE 12 • 2013 25 Military Infrastructure From Tactical to Strategic An important component of capability-based transformation is development of modern supporting infrastructure. A sound and secure infrastructure will enable the IAF to undertake its tasks in the most effective manner and thus, in the true sense, become a force multiplier in the days to come.

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

By Air Marshal (Retd) Raghu Rajan

The Indian Air Force (IAF) is currently embarked on trans- ability of aircraft parked in the open, a lesson put to good effect formation into a capability-based force from an adversary-centric by the IAF in the Indo-Pak conflict of 1971. The IAF understood one with focus shifting from the tactical to the strategic. As the that infrastructure that preserves precious aircraft assets on the primary agency to be called upon to respond to crisis situations ground, in effect serves as a force multiplier. While the IAF has in the region or in other areas of interest, in the years ahead, adopted comprehensive measures to enhance infrastructure in the IAF would have a critical role to play. Its peacetime missions several areas of activity, there will always remain more to be would include disaster management, deployment of peacekeep- done. Areas of infrastructure development that the IAF needs ing forces and possibly preventive military intervention to main- to focus on are intelligence, surveillance and reconnaissance tain peace and stability. Such contingencies require the capability (ISR), space, logistics and transportation, airfields, networked of speedy power projection over long distances through adequate information grid, public works and defence industry. strategic airlift and long-range strike capability. An important component of capability-based transformation ISR and Space is development of modern supporting infrastructure. During the Infrastructure development in this regime would include from T1967 Arab-Israeli conflict, most of the 450 Arab aircraft lost space-based, aircraft-based and UAV-based systems to human

Photogra p h: PIB were destroyed on the ground. This brought home the vulner- intelligence (HUMINT), exchange of information amongst the

26 ISSUE 12 • 2013 www.sps-aviation.com Military Infrastructure services and civil agencies, both external and internal, and exchange of voice, data and video between all commanders so finally a communication network that transfers data, video as that planning, execution and interaction can take place in real- well as voice to the user as close to real-time as possible. The time prior to and during the battle. The planning of an integrated other area is for all stakeholders, including civil agencies, to air campaign or even a localised air effort can be made speedier synergise their efforts with the services so that the final picture and safer by software programmes. The execution and results is as complete as possible. A fine example of this synergy is the can be monitored in real-time as was the case during the opera- US plan to deal with Osama bin Laden. tions by Mirage fighters’ attack over Kargil. This channel of communication will also permit exchange of information relating to Logistics and Transportation logistics, personnel, medical and finance. It is understood that Logistics requires the IAF to record the consumption of a vari- there is a plan to have a defence communication network that ety of items and forecast of its requirements. It also needs to will allow the three services and the Ministry of Defence to inter- arrange the transportation of aircraft, weapon systems, spares, act with each other during contingencies. It is hoped that effec- rations, petrol, oil and lubricants, clothing and even armament tive interface will be built amongst the communication protocols stores to the user. The project Integrated Material Management of the three services for speedier and secure communication. On Line System (IMMOLS), the software for which was developed by the Tata Consultancy Services (TCS), has enabled Air Public Works HQ to take quick action to place orders, reduce inventories and Public works is as important as operations as it is the foundation respond faster to the requirement of users. What was needed on which a sound and secure operational task can progress. At was a networking of all logistics functions so that the current present, public works is the responsibility of the Military Engi- consumption of over 5,00,000 items of spares is known in real neer Service (MES). The two areas that need attention are exper- time. The IMMOLS solution has not only obviated the concerns tise in public works which does not exist within the IAF and of the IAF on stock outs, delays, dependencies on individuals hence the reliance on the MES for specialist advice. Base com- and inaccurate communications, but has also brought in a host manders need to be given financial powers to disburse funds for of beneﬁts like effective materials management, assets visibility works services based on progress of projects. An alternative is to for better utilisation of available resources, reduction in inven- make a project into a turnkey one, something which has found tory levels and higher rates of serviceability of weapons systems favour with the government as in the case of the MAFI being and equipment. executed by Tata Power SED as well as other companies. Transportation of equipment and spares is most cost effec- Owing to the possibility of exposure to enemy action, defence tive when it is carried out by road. However, transportation by works are required to be more hardened than their civil equiv- air is preferred in inhospitable terrain or when the requirement alents. A good example is the location of North American Air is urgent. There needs to be synergised effort by all the three Defence (NORAD), HQ, USA, which is located deep inside Chey- services to use air effort. This can be best done when their rep- enne Mountains in the US. It is reported that Iran and China resentatives sit together, draw out plans in advance for use of have also located their operations centres deep underground. air resources. Those responsible for logistic functions need to There are lessons in this for the IAF. ensure that this is done. Defence Industrial Base Airfield Infrastructure This not only includes defence public sector undertakings Early last decade, a plan to upgrade the airfield infrastruc- (DPSUs), but also the Defence Research and Development ture was approved by the government and was launched the Organisation (DRDO). The DPSUs, specifically the Hindustan Modernisation of Airfield Infrastructure (MAFI) Project which Aeronautics Ltd (HAL), besides achieving good overhaul and includes extension/resurfacing of runways and installation of repair capabilities, like the Chinese, needs to also reach high modern navigational aids. On March 16, 2011, the Ministry of standards in designing aircraft. Competition needs to be intro- Defence signed a `1,094-crore contract with Tata Power’s Stra- duced by pitting with the private sector and their manage- tegic Electronics Division (Tata Power SED) for modernising 30 ment freed from the shackles of the government. This situation IAF airbases across the country. Tata Power SED has 42 months applies to other DPSUs too. to execute this strategically vital contract. Upgradation of air- The DRDO needs to be accountable and project manage- field infrastructure will enable military aircraft to operate by ment be entrusted to a senior serving officer placed directly day and by night in all types of weather with high degree of under Air HQ. The Naval model that Air HQ needs to emulate is safety. This would apply to airfields in the mountainous regions one where the Directorate of Warship Design, functions under of the North and Northeast, as well as the island territories. Naval HQ. The IAF also needs to depute more officers of the These airfields will also be available for operations by civil air- technical branch to DRDO and to defence PSUs, so that there is craft. Upgradation of airfield infrastructure will undoubtedly a better understanding of each other. These measures will, with enhance operational capability of the IAF manifold. time, enable India to progress on indigenous development of aviation with greater vigour and commitment. Networked Information Grid Information superiority assumes great importance in today’s Upgrade to world-class standard digitised battlefield. In network-centric warfare, the coverage What needs to be done is to bring the IAF infrastructure up to extends from Air HQ to all commands and their bases. The com- world-class standard. Infrastructure has a long gestation period, munication bandwidth should be adequate to cater to data, video needs advance and integrated planning not only within the IAF as well as voice transfer. While space communications is over- but amongst the three services and other civil agencies to ensure arching, it is also susceptible to jamming or even destruction that the end result is cost-effective, with least duplication. by adversaries. Hence there is a need to build in redundancies, A sound and secure infrastructure will enable the IAF to by means of wireless and even underground optical fibre cable undertake its tasks in the most effective manner and thus, in which will provide greater security. This network will permit the true sense, become a force multiplier in the days to come. SP

www.sps-aviation.com ISSUE 12 • 2013 27 Military operations

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

By Air Marshal (Retd) Raghu Rajan Photogra p h: I A F

28 ISSUE 12 • 2013 www.sps-aviation.com Military operations

IMD helped reduce casualties significantly. Large sections of the affected population were moved out of harm’s way on time because of timely and accurate warning by the IMD. Heavy rainfall in the catchment areas in Nepal, often tend to flood the states of UP, Bihar and West Bengal. Adequate liaison between the governments of Nepal and India will enable these states to receive advance warning of release of excess waters from the dams upstream by the Government of Nepal during periods of heavy rainfall. Lack of coordination in this regard resulted in heavy flooding of North Bihar in 2004.

Reconnaissance In the event of a natural calamity, as a first step, immediate reconnaissance both from the air and on the ground will help ensure proper allocation and deployment of resources. Survey by the IAF and the Indian Army needs to be carried out in coordination with the civil administration. The Garud para commandos of the IAF and their equiva- lents in the Army and the Navy should be part of the initial reconnaissance teams. These teams can be air-dropped at different locations to determine the type of help required by the affected people. They can also identify helipads and even assess locations for the creation of new helipads. The aerial survey will also help designate routeing by helicopters and fixed-wing aircraft from their operating bases into and out of disaster affected areas. Unfortunately, in the Uttarakhand episode, even while the IAF helicopters arrived at Dehradun on June 17, 2013, no aerial reconnaissance was undertaken. An aerial survey early would have enabled the Uttarakhand government to allocate resources to areas needing urgent aid and ground units could have reached trouble spots earlier than they did. Updated maps of the area with obstacles such as high tension cables, microwave towers, buildings, etc clearly marked, must be made available to the aircrew and ground rescue teams. This task must be executed in coordination with the Air Force Commander responsible for the conduct of air operations. This requirement is particularly critical in the narrow valleys in the Himalayas. In action: Indian Air Force mi-17 in relief and rescue mission Command, Control and Communication during operation rahat Command and control of all aerial activity must rest with the IAF, being the more experienced and possessing the largest resources. In Uttarakhand, besides the 45 plus helicopters of the From the earthquake in Gujarat in 2001 to floods in IAF, there were around 15 from the Army and 30 from civil agen- Assam in 2012 and floods in Leh in 2010 to the Tsunami that cies. Though the Air Commander would be guided by the require- affected the south-eastern coast of the country in 2004, the 21st ments set by the civil administration, he is the final authority to century has witnessed natural disasters affecting all corners of assess the viability of the sortie, for he is aware of the weather the country. While the Indian Air Force (IAF) has always been and limitations of aircraft/aircrew while operating in the area. in the forefront in providing aid to the civil administration and One of the immediate requirements is to establish commu- provide succour to the affected populace, yet there remain nication network in the disaster-affected areas. In the case of areas that the IAF along with the civil administration needs to floods in the plains, roads and bridges will often be washed away focus on to better exploit its capabilities to mitigate the damage and flat-bottom boats are ideally suited for rescue. In mountain- and destruction caused by natural calamities. ous areas; evacuation of the injured, the elderly, women and children by helicopter, would be the preferred option. Restoring Advance Warning communications will become a priority in hilly areas, as it was FDuring the floods in Uttarakhand, Shashidhar Reddy, Vice Chair- in Uttarakhand. Along with communications, the need for reli- man of the National Disaster Response Force stated that the able power supply would be vital for effective and speedy com- India Meteorological Department (IMD) needed to develop more munication. Apart from batteries, generator sets would need precise observational and forecasting capability. Weather fore- to be heli-lifted to the required sites also to facilitate refuelling cast worded as “fair to partly cloudy with chances of thunder operations. Helicopters consume enormous quantities of fuel showers” are rather vague and cover the entire range of weather as these platforms would need refuelling at forward helipads. phenomena. The forecast needs to be more specific to be useful. Innovative fuel transfer by the Super Hercules at Dharasu, a However, there has been some improvement since then as dur- very short landing strip in Uttarakhand, resulted in transfer ing the cyclonic storm, Phailin, across the Odisha and Andhra of some 8,000 liters of fuel to a bowser, thus allowing quick Pradesh coasts in October this year, accurate warnings by the resumption of helicopter sorties there.

www.sps-aviation.com ISSUE 12 • 2013 29 Military operations

Disaster relief ops: IAF Helicopter on Relief and Rescue Aerial Operations mission in the flood affected supervisor must be conscious of, for the Assam Region; (right) Relief packets During disaster relief operations, air- being dropped from a plane in the sake of air safety. crew from diverse units of the IAF, Army, aftermath of super cyclone Phailin, There are equally numerous unsung Navy and civilian agencies would consti- in Balasore, Odisha. heroes behind the scene such as the tute the task force. The Air Commander medical staff, technical ground crew would need to be tactful to ensure willing who are the first to prepare the aircraft cooperation by all. Apart from the need and the last to secure them for the night, for good mutual understanding, there is the need to maintain the air traffic control personnel and the loaders. Success of flying discipline, stipulated timings for the sorties and to ensure disaster relief operations hinges on their effort as well. that aircraft are not overloaded. Finally, there is the need to report changes in the sortie parameters or observations during Media Management the missions to help the Air Commander and the civil adminis- The media is one of the important factors in disaster relief oper- tration to execute tasks more efficiently. ations that impacts public perception. The IAF’s sterling perfor- Better use of a mix of helicopters would make the accom- mances are often not known in real-time to the nation and it plishment of the task more effective. Large helicopters such as needs to be corrected. Timing is essential with the media or else the Mi-17 with larger rotors compared with the smaller Chetak/ it is not of much use as news. The normal practice is a media Cheetahs require helipads of larger size to operate on. The briefing at a senior level with no opportunity for those actually Mi-26 helicopter, the largest and heaviest rotary-wing platform involved with the exercise to interact with journalists. with the IAF, requires even a larger helipad. As landing may not The IAF needs to formally train officers in media man- always be feasible, dropping of food packets by Mi-17 on heli- agement. The service needs to understand the need to avoid pads in the affected areas is often a better option. In addition, this being insular. No attempt should be made to conceal any can be followed by spot-dropping of food by smaller helicopters adverse event as there is no organisation without a flaw. like the Chetak/Cheetah to reach the stranded groups of people Disaster relief operations too are unlikely to be flawless and directly. Heli-dropped Para Commandos can be of immense help hence the service should be prepared to provide a measured for evacuation of the injured/infirm/elderly as they can, if neces- response to important occurrences. Any report critical of the sary, assist in winching them up to the helicopter. service needs to be countered in an objective fashion. The During disaster relief operations, the responsibility on the media, when tackled with openness and confidence, in due supervisors is indeed heavy. Helicopter pilots are often required course, will learn to convey the right picture of the service to fly into uncharted areas and land on unprepared helipads. with a sense of pride. They are undoubtedly enthusiastic as missions to save lives are the most soul satisfying that a pilot can ever undertake! All the Need for Better Leadership more reason for supervisors and aircrew to be careful, weigh Disaster relief operations can be tackled more effectively with the risks carefully and only then go ahead to undertake tasks. advance planning and preparations. Reconnaissance of routes, At that time, there may not be any precedence to follow and creation of helipads, accurate weather forecast, positioning of it all depends on the pilot’s skill, understanding of the terrain, fuel and efficient communications, are critical to the success of the machine and the weather, all testing his professionalism these operations. Control and coordination of diverse forces, all and temperament to the utmost. The Air Commander trusts all geared to give their best, demands leadership of a high quality. aircrew to do their best. During the Uttarakhand operations, on Finally, interaction with the media must be an intrinsic part of one such day, the IAF flew 330 sorties evacuating 4,500 people, the disaster relief operations. The IAF has rendered yeoman ser- reported to be one of the largest such operation in the world vice to the nation and disaster relief operations have been one of ever undertaken. Disaster relief operations are indeed one of the most challenging and satisfying. The men and women of the the most demanding and yet satisfying that a pilot would ever IAF will always cherish memories of disaster relief operations SP Photogra p hs: P iB fly in his career. Fatigue is therefore another factor that the undertaken by the service.

30 ISSUE 12 • 2013 www.sps-aviation.com Military operations iaf’s C-130J SUPER HERCULES in relief operations

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

Photogra p h: PI B In mid-June 2013, the Northern state of Uttarakhand was dev- —By Air Marshal (Retd) B.K. Pandey

www.sps-aviation.com ISSUE 12 • 2013 31 Civil Interview

ready for action: forging partnership: Marc Parent, President and A view of the simulators. the jv expects to Chief Executive Officer of CAE and Rahul Bhatia, have a total of six simulators in near future Group Managing Director of InterGlobe We see very strong potential across the whole region

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

32 ISSUE 12 • 2013 www.sps-aviation.com Civil Interview

high quality individuals who can fly safely. We are kind of exploring the setting up of training facility for aircraft maintenance engineers as well.

SP’s: Have you spoken to the military of the kind of training you offer? Marc: We have 300 employees here and the head over here goes looking for both civil and military business. We are in discussions with the military with the consideration that there are going to be fresh acquisitions.

SP’s: As CAE President how would you compare the talents of military and commercial pilots? Who is more capable? Marc: The mission of civil and military aviatiors is very different but safety remains common. Training is to ensure that the pilot is ready to fly any aircraft – military bomber, fighter or helicopter effectively and safely. The same applies to commercial pilots. In India, the DGCA is working towards world-class stan- team spirit: (L-R) Rahul Bhatia, Marc Parent, Arun Mishra (DGCA) and Srinivasan Dwarakanath, dards of flying and safety in aviation. ceo, airbus india SP’s: Will the joint venture offer SP’s Aviation (SP’s): What are your plans for expansion, training to General Aviation air- if any at this time? Do you see any impact on operations craft in addition to large aircraft? of IndiGo in view of the Tata-Air Asia and Tata-Singapore Marc: The centre will offer training facility for Business Jets too. airline ventures coming up in India? However, the Board would look at it as and when there is a case Rahul Bhatia (Rahul): We have our work cut out for ourselves in for Business Jets simulation training. IndiGo. The focus of our immediate plans for growth is to build on the airline. I would prefer not to talk about Tata-SIA, I don’t know SP’s: How do you compare training infrastructure in India the airline. At a certain level we are in competition. India is an with that in China? enormously underserved market and deserves many players to Marc: The good thing about this is that in terms of international come... There is room for everyone to survive and prosper. We very standardisation and safety, there is very little difference. Just as much welcome them to be part of this growing aviation market. India is growing in leaps and bounds, China is growing too... and both will not want to have any black mark when it comes SP’s: What is unique about this training centre compared to to airline operations, training or flight safety. You will find very other facilities that exist in india? similar kind of training infrastructure. However, I must say this Marc Parent (Marc): Certainly it is modern. The simulators are is a very modern facility here. the most advanced simulators we have ...5000 series of Airbus A-320. The architecture is the latest generation that takes into SP’s: The very quality of pilot training is critical. How do account lessons we have learned all around the world. It is the you perceive that? most modern among the 42 training centres we have. Rahul: We work with regulators throughout the world. The training standards are getting standardised around the world to an SP’s: Any bias towards Airbus-centric training? increasing level of safety. We are working towards elevating safety Marc: Airbus is certainly increasingly using the training centre standards in India too and the DGCA is very active in this area. for its customers. It is an Airbus authorised training centre that At CAE, all we do is simulation and training. We spend ten per offers training to its customers in India. It is not Airbus cen- cent in R&D to ensure that we have the best training tools in the tric....we have simulators of other major aircraft that represent industry and are cost-effective. We have been selected by differ- the diversity of the fleets in India. ent OEMs to do simulators and they include Bombardier C-Series, ATR-72-600, ARJ-21 and COMAC. Our simulators are not just SP’s: India is still in the nascent stage in terms of key infra- meant for training pilots but are also used for certifying aircraft. structure including the pool of quality pilots. What solutions do you plan to provide the operators/owners in India with? SP’s: What is your vision behind this partnership? Rahul: The fact that we are putting up a world-class training Rahul: To work with the best in the business. SP centre with the potential of growing in scale to six possibly eight times is reflective of our effort to embrace the opportunity we For the complete interview and video, log on to: see in the long run. We want to have cadet training to bring http://www.sps-aviation.com

www.sps-aviation.com ISSUE 12 • 2013 33 Civil Training WORLD-CLASS PILOT TRAINING IN INDIA Christened as CAE Simulation Training Private Limited (CSTPL), this centre is a 50:50 Joint Venture between InterGlobe Enterprises and CAE.

InterGlobe Enterprises and CAE recently inaugurated the GDP is 1.5 per cent and it provides 17 million jobs. There are their ultra-modern pilot training facility in Greater Noida, National challenges to its growth but these challenges are not insurmount- Capital Region (NCR). Christened as CAE Simulation Training Pri- able. It requires all stakeholders to work together to get the right vate Limited (CSTPL), this centre which is a 50:50 Joint Venture kind of policies so as to have a sustainable growth story of India. between InterGlobe Enterprises and CAE, will be India’s larg- Amidst challenges, there is a need to collaborate to grow.” est pilot training facility. An investment of over $ 25 million has already been made in setting up the facility and equipment. CAE CAE – A Dominant Player and InterGlobe have also announced a long-term pilot training Marc Parent, President and Chief Executive Officer, CAE said, services agreement with GoAir, a low-fare domestic carrier. Start- “This is a world class state-of-the-art training centre. I can tell ing in December 2013, GoAir’s A-320 pilots will train at the facility. you that some years ago when I came here, I could see cows Speaking at the opening ceremony of the centre, Rahul Bhatia, grazing in the field... look at where we are today... it is a miracle. Managing Director, InterGlobe Enterprises said, “CAE are global I am very proud of the modern structure we have put up in asso- Ileaders in civil aviation technology and we are proud to be associ- ciation with InterGlobe.” ated with them. This training centre is a landmark in India’s avia- “It is such an understatement to state that India is a dynamic tion training facility. It is the largest such facility in India and is country; it is one of the fastest growing civil aviation markets. also a preferred Airbus training centre that can used by all the air- The Indian commercial airline fleet has doubled in the last lines not just in India but also those in neighbouring countries to decade. There are 500 aircraft on order and this translates to a train their pilots. Also, individual pilots can obtain flying licenses requirement of 3,000 pilots over the next five years... this is just over here. Over time we will encourage military pilots and also a fraction of the potential India has.” explore starting courses for aircraft maintenance. We have two Parent continues, “CAE has infrastructure capabilities to sup- full flight simulators which can give real time scenario.” port traffic growth here. Today 75 per cent of civil simulators in this country are built by CAE. In 2008, the first civil aviation train- Future Plans ing centre was established in Bangalore and this produced 1,500 Bhatia states, “By 2017, there are plans to introduce another four pilots last year. We also operate a training centre with Hindustan simulators. The Centre will be preferred for A-320 simulation to Aeronautics Limited (HAL) and in partnership with the Govern- train fresh pilots as also for those who want to renew their pilot ment of India, run ab initio training in Gondia and Rae Bareli. The licenses and will be continuously upgraded. Once the six simula- six simulator centre will provide training to airline pilots with facil- tors are operational, about 5,000 pilots will be trained in a year. ities such wet and dry training, besides jet indoctrination training.” Presently, the centre has the capability to train 1,000 pilots annually. As there is a shortage of techni- DGCA Support cians, the needs of the industry have Arun Mishra, Director General of to be addressed as soon as possible.” Civil Aviation (DGCA) praised the endeavour stating that it would add Untapped Market a lot to the safety of civil aviation in “Despite the turbulence, India’s India. He complimented InterGlobe aviation market has grown expo- and IndiGo for changing the pace of nentially. By 2019, India will be the aviation in India. “IndiGo has pushed third largest aviation market behind up the aviation market with low fares the US and China. By then, 420 mil- and on time performance. While we lion passengers will be flying and in have huge potential but what wor- the short term, it is estimated India ries me is that while we are getting will need 3,000 pilots. It is a large good airports, we are lacking in the untapped market. India is a coun- development of manpower, the next try of 1.2 billion which represents generation of aviation professionals.” one aircraft for every three million Regarding standalone training people. In China and Russia, the centres, he said there were certain aircraft penetration is three to four niggling issues, but added that the times more and we are not talking DGCA was in the process of formu- about mature markets such as US or Rahul Bhatia, Managing Director, lating rules and regulations to evolve Europe. This means India will need InterGlobe Enterprises, and Marc Parent, the best international practices. SP several thousand aircraft. Presently, President and Chief Executive Officer, CAE, inside the simulator

P hotog r aph: I nte glo b e the aviation sector’s contribution to —By R. Chandrakanth

34 ISSUE 12 • 2013 www.sps-aviation.com hall of fame

The sight of an air ambulance When World War I broke, women Marie Marvingt’s brief foray into extracting critically ill patients from were not accepted in the French Army. combat did not blind her to aviation’s conflict zones and disaster areas for life- But Marie disguised herself as a man potential for peace. “If we have given saving treatment is common in our day. and served on the frontlines. However, wings to the world, we have the obliga- It was not always so. What is perhaps after about three weeks her ruse was tion to ensure that they are the wings of one of the most important advances in discovered and she was sent home. the dove of peace,” she once said. Being military medicine of the 20th century In 1915, she flew a few missions over a skilled pilot, a qualified surgical began due to the visionary efforts of German-held territory as a volunteer nurse and having witnessed the plight Marie Marvingt. She was an outstand- pilot, including the aerial bombing of of the war wounded first-hand, she ing pilot and balloonist, a world-famous a German airbase in Metz. She thus merely had to put the three elements athlete, a perceptive inventor and a car- probably became the first woman in together to hit upon the idea of an air ing nurse. She was only the third ambulance service. It became her woman in the world to be awarded crowning achievement. She for- a pilot’s licence and set some of the mulated courses for the nurses of first aviation records for women. the air and in 1935 became the She briefly fought in the First world’s first certified flight nurse. World War both as a soldier and a This and similar schemes caught pilot. She has rightly been called the imagination of the young Tone of the most interesting women women of France and by the of the last century. start of World War II there was a Marie Félicie Elisabeth Mar- sea change in the quality of care vingt was born on February 20, provided to injured soldiers. She 1875, in Aurillac, Cantal, in France. also established a convalescent She gained global fame by winning centre for wounded aviators and numerous prizes in swimming, invented a new type of surgical cycling, gymnastics, fencing, shoot- suture. Later she worked for the ing, ski jumping, speed skating establishment of air ambulance and other sporting activities. She services throughout the world. won a rifle shooting competition Marie Marvingt died on against an entire army division. In December 14, 1963. Of all the 1908, she tried to enter the Tour de women who received official France, the world’s most gruelling awards in the history of France, cycle race, but was not accepted. her tally of 34 medals and deco- The organisers may have felt justi- Marie Marvingt rations stands out because they fied in excluding a female because (1875-1963) were conferred in the most varied only 36 of the 114 males who par- fields. She even wrote fiction and ticipated that year could complete prize-winning poetry. Although the race. But Marie was not one Being a skilled pilot, a qualified she was named “La fiancée du to accept defeat and cycled over surgical nurse and having danger” (the fiancée of danger), a the entire course alone. She was witnessed the plight of the name she espoused for her auto- the first woman to climb most of biography published in 1948, she the peaks in the French and Swiss war wounded first-hand, she was essentially a safe flyer, justly Alps. In March 1910, the French merely had to put the three proud of her record of never Académie des Sports awarded her elements together to hit upon having been involved in a major a Gold Medal “for all sports”, the crash for her first 900 flights. It only multi-disciplinary medal they the idea of an air ambulance was a feat unequalled at the time. ever awarded. service. It became her crowning She had the joy of flying in her, Her aviation feats were no less achievement. She formulated saying: “This new sport is com- impressive. In September 1909, courses for the nurses of the air parable to no other. It is, in my she made her first solo flight in a opinion, one of the most intoxi- balloon. On October 26, 1909, she and in 1935 became the world’s cating forms of sport, and will, I became the first woman to pilot a first certified flight nurse. am sure, become one of the most balloon across the English Chan- popular. Many of us will perish nel from Europe to England. The before then, but that prospect will following year, she gained her bal- not dismay the braver spirits. In loon pilot’s certificate. But fixed- devoting themselves to the new wing aviation was taking the world cause, those who have the true by storm and Marie did not wish to be the world to fly combat missions and aviator’s soul will find in their struggle left behind. She took flying lessons from was awarded the Croix de Guerre with the atmosphere, a rich compensa- Hubert Latham in an Antoinette mono- (Military Cross) for her feat. Between tion for the risks they face. It is so deli- plane, becoming one of the first women the two World Wars, she worked as cious to fly like a bird!” SP to solo in it. The Aero Club of France a journalist, war correspondent and awarded her a pilot’s licence in Novem- medical officer with French Forces in — Group Captain (Retd) ber 1910. North Africa. Joseph Noronha, Goa

www.sps-aviation.com ISSUE 12 • 2013 35 News Digest

MILITARY oldest airbase of the IAF as it completed 75 glorious years on November 21, 2013. QuickRoundUp ASIA-PACIFIC The Platinum Jubilee Celebrations on the occasion were attended by a host of of- President’s Standards Awarded to ficers who have been associated with the IAF’s 220 and 32 Squadrons station including the Marshal of the Air Force Arjan Singh, who had once com- AgustaWestland manded the station. The Air Chief’s as- Turkey remains fully committed to a co-production sociation with Ambala airbase dates back program with Italian-British AgustaWestland for scores of to the times when as a Flight Lieutenant T-129 attack helicopters, despite “minor” technical snags , he was a part of the initial ‘Core’ team that have delayed acceptance tests for an initial batch of that flew in Jaguars to India to raise the nine choppers. very first Jaguar Squadron at Ambala. AgustaWestland has announced that the Dubai Police Established on April 01, 1938 with a few will operate five AW-169 light intermediate helicopters to officers and a defined role of training in perform a range of missions including law enforcement, Army/Air Cooperation, Air Force Station emergency medical services and VIP transport. Ambala has been closely associated with At an impressive Ceremonial Parade at the growth of the IAF. Airbus Air Force Station Halwara on November Air Algérie has signed a Memorandum of Understanding for 20, 2013, the President of India, Pranab Gangotri to Gangasagar three A-330-200 passenger aircraft as part of the carrier’s Mukherjee presented Standards to two continued growth plans during the Dubai Air Show 2013. of the IAF’s frontline fighter squad- Air Algérie has already ordered a total of five Airbus A-330, rons - 220 Squadron and 32 Squadron. which have all been delivered to date. The Governor of Punjab, Shivraj Patil, Chief Minister of Punjab, Prakash Singh ANTONOV Badal, Chairman Chiefs of Staff Commit- AN−158 regional jet has completed tests on high− level tee (COSC) and Chief of the Air Staff, Air runways of Latin America. The ground and flight tests Chief Marshal NAK Browne, AOC-in-C, confirming possibility of operation of the AN−158 family Western Air Command, Air Marshal SS in conditions of high mountains with basing on runways Soman were also present besides a host situated on 4000 metres above sea level were performed of other serving and civilian dignitaries. within the limits of this program in full volume. There was a spectacular fly-past primar- Air Marshal HB Rajaram flagged in the ily consisting of the aircraft flown by ‘IAF Aqua Scullers” on the successful ATK the units being awarded the President’s completion of their white water rafting ATK, a leader in weaponized, special-mission aircraft, has Standards. The President’s Standard is expedition on the Ganges from Gangotri announced that it has completed the first flight test for the the highest and most prestigious honour (at an altitude of 3,049 m) to Ganga Kingdom of Jordan’s two CASA-235 light gunship aircraft. bestowed upon any unit of the Armed Sagar in West Bengal. River Ganges is ATK was awarded a contract by Jordan to modify two of the Forces in recognition of its invaluable known to be one of the most challenging country’s CASA-235 transport aircraft into highly-capable contribution to national security both rivers in the world for White Water raft- and cost-effective special mission aircraft. during war and peace. 220 Squadron ing. The Himalayan portion of the river has a rich history spanning over five from Gangotri (at 3,049 m) to Haridwar Austria decades flying fighter aircraft ranging (at 295 m) is considered one of the most The Defense Security Cooperation Agency has notified Con- from the Vampire to the currently held treacherous white water stretches in gress of a possible Foreign Military Sale to Austria for three state-of-the-art SU-30 MKIs. Similarly 32 the world, with forceful Grade IV & V UH-60M Black Hawk Helicopters in Total Package Approach Squadron has a glorious history having rapids. This and other challenges were and associated equipment, parts, training and logistical operated fighter aircraft from the Mystere overcome by the “IAF Aqua Scullers” in a support for an estimated cost of $137 million. IV to the currently held Bison. record time of 16 days. This expedition is the first and the most unique of its kind Boeing Air Chief Visits Ambala Airbase as it ever undertaken by the Indian Armed The first of Boeing RC-135V/W Rivet Joint signals intel- Completes 75 Glorious Years Forces. During the expedition, the rafting ligence aircraft has been delivered to UKs MOD ahead team “IAF Aqua Scullers” lead by Wg Cdr of its entry into service with the RAF in 2014.The aircraft Paramvir Singh broke many records like will form part of project Airseeker, which will provide the longest rafting expedition ever in India UK with a world class capability able to provide real-time covering over 3000 Km, shortest duration on-scene intelligence, surveillance and analysis for forces ever taken to raft down the entire length in the air and on the ground. of Ganga and many more.

Bombardier China’s J-10 Modernisation Bombardier Aerospace today announced that Iraqi Airways, On November 6, 2013, Zhang Jigao, the national carrier of Iraq, has signed a firm purchase Deputy Chief Designer of the J-10 fighter agreement to acquire five CS300 mainline jetliners. The said that the overall performance of the agreement, which also includes options on 11 CS300 The Chairman Chiefs of Staff Commit- J-10 will be comprehensively improved aircraft, follows a letter of intent to purchase the aircraft tee and Chief of the Air Staff Air Chief in areas such as aerodynamic layout, that was announced by Bombardier on November 19 Marshal NAK Browne visited Ambala, the mission system and the approach to

36 ISSUE 12 • 2013 www.sps-aviation.com News Digest maintenance. Over the last five five years, has excellent sea-air combat capability several images of the test J-10B have and is equipped with a variety of air-to- appeared online, attracting widespread air, air-to-ground and air-to-sea attack QuickRoundUp attention from netizens, military enthusi- weapons. Its comprehensive combat asts and even foreign media. US military capability has reached an internationally expert Richard Fisher recently pointed advanced level which reflects the extraor- out that the J-10B is a so-called “four and dinary technical achievements of China’s a half” generation fighter equipped with aviation industry. during the Dubai Airshow. Based on the list price for the modern airborne technology and an ad- CS300 aircraft, the firm order is valued at approximately vanced radar system, which is about to be IAF’s First Supersonic Jet to be $387 million and could increase to $1.26 billion if the delivered to the PLA Air Force. He pointed Aviation Folklore additional option of 11 aircraft is taken. out that single combat is rare in modern The deafening roar of the Mikoyan- Bombardier Aerospace has announced that Iraqi warfare and that the majority of cases Gurevich Mig-21 FL afterburner, an Airways has signed a letter of intent (LOI) to acquire five now involve system combat and network iconic delta-wing fighter aircraft that CS300 mainline jetliners. The LOI includes options on 11 operations, as the combat capabilities of a heralded the ‘supersonic era’ in the IAF CS300 aircraft. Based on CS300 airliner list price, a firm fighter depend on many factors. will no longer be heard as on Decem- order would be valued at approximately $387 million. ber 11, 2013, it flew into the annals of Assistance to Philippines in the military aviation history. Four Mig-21 FL Brazilian Air Force Aftermath of Typhoon Haiyan aircraft flown by pilots from the Opera- The Brazilian Air Force has taken delivery of the seventh tional Conversion Unit , last abode of the P-3AM Orion patrol aircraft which was handed over on venerable jets, flew a ‘box formation’ as Tuesday Nov ember 5 in Seville, Spain. Chief of the Air Staff, Air Chief Marshal NAK Browne took the salute at the CFM ceremonial parade to bid them adieu. In FlyDubai has announced that it has signed an agreement the first ever supersonic air combat that with CFM International to purchase up to 200 LEAP-1B ensued over the sub-continent in 1971, engines to power Boeing 737 MAX aircraft. The airline has an Indian Mig-21 FL claimed a PAF also ordered 22 CFM56-7BE engines to power up to an F-104 Starfighter with its internal twin- additional 11 Boeing Next-Generation 737-800 aircraft. barreled guns alone. By end of the hos- Deutsche Lufthansa has selected CFM International’s tilities the IAF Mig-21s had claimed four CFM56-5B engine to power 30 firm Airbus A-320ceo In a display of solidarity with the inhabit- Pakistani F-104s, two F-6s, one F-86 (current engine option) aircraft. The agreement is valued at ants of hurricane-ravaged Philippines, Sabre and a Lockheed C-130 Hercules. more than $610 million at list price. The contract for the Government of India mounted a speedy The attack with pin-point accuracy aircraft were announced in June, this year. joint services response coordinated by on the Governor’s House at Dhaka by IAF HQ Integrated Defence Staff to provide pilots flying the Mig-21s, proved to be a China assistance to the beleaguered nation. The turning point in the war forcing the adver- A video showing a taxiing run of one of China’s home-made relief package comprising medicines, sary to negotiate an eventual surrender. “Sharp Sword” prototype attack UAV has recently been made hygiene chemicals, tentage, blankets, available online, quickly attracting the attention of large tarpaulins and ready-to-eat meals were AMERICAS numbers of netizens. Interviewed by a media reporter, mili- provided ex Armed Forces stock and air- tary expert Meng Xiangqing said that the news of a “Sharp lifted by an Indian Air Force C-130 Super Guardian Angel Air-Droppable Rescue Sword” maiden flight still needs to be confirmed officially. Hercules aircraft to Tacloban which was Vehicles (GAARV) the epicentre of the devastating natural The 88th Test and Evaluations Squadron EADS calamity. Similar aid was provided to received the first set of GAARV in the The European Aeronautic Defense and Space Company has Philippines by India in 2006 as well. US Air Force’s inventory. The GAARV is proposed that South Korea purchase a combination of 40 a multi-purpose utility vehicle intended Eurofighter Typhoons and 20 F-35s for its next-generation J-15 Ship Borne Aircraft’s to help combat search and rescue teams fighter procurement project. The rationale given was that a Performance Modifications retrieve individuals that have been split procurement will offer a better blend of capabilities On November 6, 2013, Wang Yongqing, isolated and can expand the ability to for peninsular security conditions and also ensure an Chief Designer of J-15 revealed that quickly reach further into the battle space earlier fixed delivery timetable, starting from 2017. special design features have been ap- to provide a more mobile rescue capabil- plied to the J-15 in accordance with its ity. “The GAARV may provide capability Eurocopter deployment on aircraft carriers in order enhancements for maneuverability, force Brazil’s Helibras completed the first flight of an EC-725 to achieve the special requirements of protection and technical rescue capabili- helicopter completely produced by the company in Brazil. ship borne aircraft. J-15 ship borne air- ties within the ground domain,” said a The flight took place two months earlier than the deadline craft series No 555 was a very important US Air Force officer. scheduled by the EC725 project. aircraft although it had attracted limited media attention. The J-15 is China’s first EUROPE Eurofighter generation ship borne fighter developed The new AESA radar for the Eurofighter Typhoon is entering from the J-11. Particular attention has Operational Trials on the A400M the system integration phase. During a four-national been paid to the special requirements The A400M Atlas, the French air force’s program review at Cassidian’s Ulm site the test and inte- of ship borne aircraft in addition to the new transport aircraft, has carried gration results of the “Captor-E” Antenna subsystem were guarantee of its combat capabilities. As out operational trials for loading and successfully presented to the representatives of the four China’s first ship borne fighter, the J-15 unloading equipment at Orange air base. Eurofighter core nations UK, Italy, Spain and Germany.

www.sps-aviation.com ISSUE 12 • 2013 37 News Digest

This has enabled the airfield to check compatibility of several types of military Show Calendar QuickRoundUp equipment, including LAV light armored 10-12 December vehicle-type (long chassis version with Gulf Defense & Aerospace 2013 a mass of four tons) belonging to the 1st Kuwait International Fair, Kuwait Foreign Cavalry Regiment, also stationed www.gulfdefense.com in Orange. The tests also validated the The 400th Eurofighter Typhoon has been delivered to full accessibility of the runway at Orange, 22-24 January, 2014 the Programme’s worldwide customer base. The German both in terms of space constraints, resis- International Military Air Force took delivery of the 400th aircraft on December tance to the aircraft’s weight, as well as Helicopter 2014 Hotel Russell, London, UK 4, 2013 during special ceremony at Cassidian’s Military Air access to taxiways. The French air force www.militaryhelicopterevent.com Systems Center in Manching, Southern Germany. was the first to receive the A400M Atlas in the summer of 2013. The A400M is a 14-15 January, 2014 HAL tactical military transport aircraft with a Army Aviation Symposium and The indigenously-developed India’s Light Combat Aircraft capability to support strategic missions. Exposition Tejas has undertaken 2,400 sorties to meet the require- Crystal Gateway Marriott Hotel, ments of the IAF, which is set to induct the aircraft on CIVIL AVIATION Arlington, VA, USA December 20. www.ausameetings.org/aviation ASIA-PACIFIC Kuwait 16-18 January, 2014 BAHRAIN INTERNATIONAL AIRSHOW The Defense Security Cooperation Agency has notified Con- Major Gains for UAE Companies Sakhir Air Base, Bahrain gress of a possible Foreign Military Sale to the Government during the Dubai Airshow www.bahraininternationalairshow.com of Kuwait for F/A-18 C/D follow-on contractor engineering During the airshow at Dubai held from technical services and associated equipment, parts, and 17 to 21 November 2013, major gains for 30 January, 2014 logistical support for an estimated cost of $150 million. companies were4 as under : BUSINESS AVIATION REGIONAL • UAE ‘s Mubadala secured total of over FORUM Northrop Grumman AED 43 billion ($ 11.8 billion) of Signature Flight Support, Boca Raton Northrop Grumman Corporation has been selected by the deals for the UAE’s aerospace and Airport, Boca Raton, FL., USA Royal Thai Air Force to supply additional AN/TPS-78 air defense sector. www.nbaa.org/events/forums/20140130 defense and surveillance radar systems. Under the terms • Aero structures and engine parts 24-27 February 2014 of the contract, Northrop Grumman will begin supplying manufacturing work packages secured Heli Expo 2014 equipment to the Royal Thai Air Force in 2015 and also and composite materials production Anaheim Convention Center, provide training, spares and logistics support. strategy driven forward through wide- Anaheim, CA, USA ranging agreements worth AED 22 www.rotor.com/Events/HELIEXPO2014. RAF billion ($ 6 billion) with global OEMs. aspx The RAF has begun training on the Puma Mk2 helicopter • AMMROC extends support for the UAE following a £260 million upgrade programme which Armed Forces with AED 21.14 billion includes a new engine which give them 35% more power ($ 5.8 billion) five-year Performance “From offering our customers state- and improved fuel efficiency to allow them to fly faster and Based Logistics agreement. of-the-art infrastructure to having a twice as far as the Puma Mk1. They also have state of the • Agreements will accelerate the highly committed, capable and capa- art digitised glass cockpits and upgraded LCD instruments. development of the Nibras Al Ain cious workforce, to establishing optimal Aerospace Park. and efficient processes, to safeguarding Republic of Korea precious intellectual property, our vision The Defense Security Cooperation Agency has notified INDUSTRY is to offer foreign customers a similar Congress of a possible Foreign Military Sale to the Republic experience to home ground and one of Korea for Phase 1 upgrades of 134 KF-16C/D Block ASIA-PACIFIC which is seamless and fully integrated,” 52 aircraft and associated equipment, parts, training and added Gupta. logistical support for an estimated cost of $200 million. Order from Boeing for Rossell Rossell’s aerospace division con- India Limited centrates on three key competencies of Rolls-Royce Rossell India has received an order from interest to foreign original equipment Rolls-Royce has won a $300 million order from Qatar Boeing for wire harness manufacturing manufacturers (OEMs)—automated test Airways for Trent 700 engines, with long-term TotalCare for the company’s F/A-18 Super Hornet equipment (ATEs), wire harness engi- support, to power five Airbus A-330 freighter aircraft. The fighter jet. “We are proud of the confi- neering and loom fabrication and avionic order for five Airbus A-330 Freighters and eight options was dence shown in our company strategy product support services. The company announced by the airline at the Dubai Air Show. by a customer like Boeing,” said Rishab has also signed memorandum of un- Gupta, Executive Vice President of Rossell derstandings (MoUs) with many other Russia India Limited. “Right from the time we foreign OEMs in the aerospace domain The Proton launch vehicle has successfully placed a started our first interactions with Boeing, and continues to see increased traction in satellite into orbit from the Baikonur Cosmodrome in we were unwavering on the company its competency areas. Kazakhstan for the Russian Ministry of Defense. The satel- strategy – and that was to offer a strong lite was passed over to the Aerospace Defense Forces for value proposition for long-term partner- Global Helicopter Market Forecast subsequent control. This was the 8th launch of the Proton ships, built on proactive investments, The global helicopter market is all set vehicle this year and the 391st overall since its first flight global standard infrastructure, a process- for rapid growth as transitioning econo- in 1965. The Proton Breeze M vehicle is manufactured driven culture and a high calibre staff.” mies from Central Asia, the Middle East,

38 ISSUE 12 • 2013 www.sps-aviation.com News Digest

appointments QuickRoundUp Bombardier Aerospace tries, has approved Colonel (Retired) Bombardier Aerospace announced Shaul Shahar’s nomination as Cor- the appointment of Raymond Jones as porate Vice President and General Senior Vice President, Sales, Market- Manager of IAI’s Military Aircraft by Khrunichev State Research and Space Production ing and Asset Management, Bombar- Group. Center of Moscow. dier Commercial Aircraft with effect from December 03, 2013. General Dynamics/Gulf- Selex ES stream Aerospace Corpo- On December 3, 2013, the Selex ES Falco Tactical Safran ration Unmanned Aerial System (UAS) started its operation of In October this year, Safran named Effective January 01, 2014, the supporting the United Nation peacekeeping operations in Jean-Michel Hillion as Corporate Se- the Democratic Republic of Congo . As announced earlier Board of Directors of General Dy- nior Vice President, Boeing Programs. in year, Selex ES was award a 3 year contract for the Falco Effective November 01, 2013, namics has elected Jason W. Aiken UAS to provide information gathering and surveillance Didier Nicoud has been named to be Senior Vice President and Chief capability to the UN operations along the Rwandan and Engineering Vice President for Financial Officer of Gulfstream Aero- Ugandan borders. Aircelle (Safran). space Corp, a wholly owned subsidiary of General Dynamics. Sikorsky Sikorsky Aircraft Corp has been awarded a $77,524,748 Northrop Grumman In November this year, Gulfstream modification to a firm-fixed-price contract to exercise an In November 2013, Northrop Grum- Aerospace Corp named Lor Izzard option for the procurement of seven Army UH-60M Black man Corporation announced the ap- Director, Sales Support and Technical Hawk helicopters in accordance with contract clause H-23, pointment of Catherine Gridley Sector Marketing, Gulfstream. “Option for Increased Quantity of Helicopters.” During Vice President of Business Develop- Earlier on in October 2013,Gulf- Fiscal 2013 funds to the amount of $77,524,748 have ment for its Technical Services sector. stream Aerospace Corp expanded the been obligated. Northrop Grumman Corporation role of commercial sales representa- Sikorsky Aircraft Corporation has announced that CHC also appointed Andrea Yeiser Vice Helicopter has signed a multi-year contract to purchase tive Prestige Jet to handle Gulfstream President of Engineering, Manufactur- nine S-92 helicopters, with options to acquire up to 15 aircraft transactions in France as well ing and Logistics for the company’s more, for use in transporting offshore oil workers and for Rolling Meadows, Ill.-based Land and as Italy and Switzerland. possible search and rescue operations. Self Protection Systems Division. Boeing Switzerland Israel Aerospace Boeing has named Ted Colbert Chief The Defense Security Cooperation Agency has notified Industries Information Officer and Vice President Congress of a possible Foreign Military Sale to the Govern- ment of Switzerland for F/A-18 Hornet follow-on support On December 02, 2013, the Board of of the company’s Information Tech- and associated equipment, parts, training and logistical Directors, Israel Aerospace Indus- nology organization. support for an estimated cost of $200 million. UK UKs Ministry of Defence is investing £35 million (about $56.2 million) to sustain the RAF’s stockpile of Brimstone Latin America and Asia-Pacific continue SPACE air to surface missiles. A contract with British defence firm increasing their fleet size and extending MBDA will guarantee the supply of the weapons for the their industrial strength. Salient features ASIA-PACIFIC next 5 years. of the analysis by Frost & Sullivan, “Glob- Britain said that it had abandoned plans to engage al Helicopters Market Assessment,” are: Arianespace to Launch GSAT 15 and a private contractor to run a multi-billion dollar defence • The market earned revenues of GSAT 16 Satellites for India procurement programme plagued by spending overshoots, $31.32 billion in 2012 and estimates The Indian Space Research Organisation delays and technical problems. Britain’s Conservative-led this to reach $44.27 billion in 2022. (ISRO) has chosen Arianespace to launch government had earlier this year trumpeted a reform of the • More than 11,170 military platforms its GSAT 15 and GSAT 16 telecommu- way it buys equipment for its armed forces to help rein in are expected to enter into service, nications satellites from the Ariane 5 public spending. peaking in 2018. launch vehicles at the Guiana Space • While the next generation of rotorcraft Center, Europe’s Spaceport in Kourou, US Air Force is still in development, Western mili- French Guiana. The GSAT 15 and GSAT Boeing and Saab AB have signed a Joint Development tary and civil end users are opting to 16 satellites, designed, assembled and Agreement (JDA) to jointly develop and build a new finance life-extension programmes. integrated by ISRO, will each weigh advanced, cost-efficient T-X Family of Systems training “Upgrades and retrofits could be the around 3,150 kg at launch. They will solution for the upcoming competition to replace the US way forward for the global helicopters provide C and Ku-band telecommunica- Air Force’s aging T-38 aircrew training system. The JDA, with market in the next 10 years,” said Frost & tions services including VSAT transmis- Boeing as the prime contractor and Saab AB as primary Sullivan Aerospace and Defense Research sions, TV broadcasting and emergency partner, covers areas including design, development, Analyst Alix Leboulanger. communications. • production, support, sales and marketing.

www.sps-aviation.com ISSUE 12 • 2013 39 Last word No hope sans Privatisation

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

40 ISSUE 12 • 2013 www.sps-aviation.com

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