management of growing air passenger traffic
p 10
emerging trenDs in aero engine technologies
p 18
Duties anD taxes on import/ purchase of Ba
p 25
august-september 2019
`100.00 (india-based buyer only)
Volume 12 • issue 4
AIRBUZ
www.spsairbuz.com A n E x c l u s i v E M A g A z i n E o n c i v i l A v i A t i o n f r o M i n D i A
EMBRAER @ 50
Years of wonDer, innoVation & success
page 14
Embraer Profit Hunter E195-E2 TechLion at PAS 2019
An SP Guide PublicAtion
OUT OF SIGHT. INSIGHT.
In the air and everywhere. Round-the-clock service representatives, a growing global network, full-flight data, and an app that tracks your orders – solutions have never been more clear.
enginewise.com
table of contents
eMBRAeR / 50 YeARs
P14 embraer’s 50 years of
Wonder, InnovatIon and success
management of growing air passenger traffic emerging trenDs in aero engine technologies
Duties anD taxes on import/ purchase of Ba
- p
- 10
- p
- 18
- p
- 25
august-september 2019
`100.00 (india-based buyer only)
Cover:
What started as an aircraft manufacturer to cater to the aviation needs of Brazil 50 years ago, is the third-largest aircraft manufacturer in the world today.
Volume 12
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AIRBUZ
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EMBRAER @ 50
- Years of wonDer, innoVation
- &
- success
page 14
From turboprop to eVTOL, the five decades of Embraer’s journey have been nothing short of a fascinating transformation
Embraer Profit Hunter
- E195-E2
- T
- echLion at PAS 2019
An SP Guide PublicAtion
Cover Photograph: www.siae.fr
MRo / ReGionAL
P7 mro asIa – comPetItIon
Heats uP
Maintaining, repairing and overhauling aircraft is labour intensive and time consuming, two elements that aren’t compatible with the low-cost, low-fare airline philosophy
P18 enGines / technoLoGY
emergIng trends In aero engIne tecHnologIes
AiRpoRts / infRAstRuctuRe
P10 management of groWIng aIr
Passenger traffIc
P22 enviRonMent / GReen
boost fuel effIcIency, slasH emIssIons
e time has come for airport infrastructure in the city side, at the terminal building and on the air side to be upgraded to meet the challenges of the future
dePartments
P2 a Word from edItor P4 neWs brIefs P32 fInally
- poLicY / tAXAtion
- show RepoRt / pAs 2019
P25 dutIes and taxes on ImPort/
PurcHase of busIness aIrcraft
P28 ParIs aIr sHoW stands tall for
PIvotal aerosPace actIvItIes, yet agaIn
Awards 2017
Special
Contribution to business AviAtion
ere is a long overdue requirement to rationalise and simplify the tax regime to promote the growth of the industry
e Paris Air Show has grown to be a hub for major developments in the global aerospace market
SP’S AIRBUZ • ISSUE 4 • 2019 •
1
A word from editor
PublIsher And edItor-In-ChIef
Jayant Baranwal
edItor
Air Marshal B.K. Pandey (Retd)
dePuty MAnAgIng edItor
Neetu Dhulia
grouP exeCutIve edItor
Vishal apar
ContrIbutors
Group Captain A.K. Sachdev (Retd) Group Captain Joseph Noronha (Retd) S.R. Swarup, Vasuki Prasad Shriniwas Mishra
n August thIs yeAr, the Brazilian aerospace major founded in 1969, completed 50 years of its glorious history and celebrated the occasion at the Paris Air Show 2019. The company that started as an aircraft manufacturer to cater to the civil as well as military aviation needs of Brazil, is the third largest aircraft manufacturer in the world today. During the last five decades, Embraer has facilitated and developed
ChAIrMAn & MAnAgIng dIreCtor
Jayant Baranwal
PlAnnIng & busIness develoPMent
Executive Vice President: Rohit Goel
I
grouP dIreCtor - sAles & MArketIng
Neetu Dhulia
solutions to improve human transportation and continues to pursue its lofty objectives. Ayushee Chaudhary has a review of the five decades of existence of Embraer in this issue of the magazine.
A major event on the global civil aviation scene this year was the 53rd edition of the iconic Paris Air Show which was held from June 17 to 23, 2019, at Le Bourget Parc des Expositions in France. This year as well, the major aerospace conglomerates from across the globe gathered for some of the most significant deals and displays from commercial aviation that graced the show. Participating in the event were 2,453 exhibitors from 49 countries showcasing a variety of aircraft. This issue of SP’s AirBuz carries a detailed review of the event by Ayushee Chaudhary.
There is big money in MRO business and with healthy growth driving the aviation fleets of Asian carriers, the demand for MRO in Asia is on the rise. We have the MRO projections in Asia by Byron Bohlman in this issue of the magazine.
One factor that is emerging as a matter of serious concern for the civil aviation industry the world over is its contribution to the phenomenon of global warming. The mandate of the United Nations Intergovernmental Panel on Climate Change is to reduce emission of CO2 to zero by around 2050 and the global civil aviation industry is of the firm view that this objective can be achieved by enhancing the fuel efficiency of engines that power aircraft. This issue of SP’s AirBuz carries a detailed review and analysis by J. Noronha of the problem confronting the industry today.
dePuty dIreCtor – sAles
Rajeev Chugh
MAnAger – hr & AdMIn
Bharti Sharma
AssIstAnt MAnAger – hr & AdMIn
Pooja Tehlani
dePuty MAnAger – CIrCulAtIon
Rimpy Nischal
grouP reseArCh AssoCIAte
Survi Massey
CreAtIve dIreCtor
Anoop Kamath
grAPhIC desIgners
Vimlesh Kumar Yadav, Sonu S. Bisht
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The growing awareness of the need to reduce emission from aircraft engines has led to global aeronautical industry to focus on innovations in the domain of aero engine technologies to make engines more fuel efficient. There is also a move to progressively replace fossil fuels that are currently in use with biofuels as also to develop alternative method of propulsion such as engines driven by electrical power. An article on the subject entitled Emerging Trends in Aero Engine Technologies by Anil Chopra has been included in this issue of the magazine.
One problem that appears to be afflicting the Indian airline industry is the inadequacy of infrastructure and modern systems to cope with the rapidly growing passenger traffic. With the phenomenal growth in passenger traffic predicted for the future, the problem is only going to get worse. This issue of SP’s AirBuz carries a review of the problem by Zorawar and Isha Jaiswal.
letter to edItor
for AdvertIsIng detAIls ContACt
[email protected] [email protected]
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All this and more in this issue of SP’s AirBuz. Welcome aboard and wish you many happy landings!
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 110003, India.
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MeMber of:
Editor
2
• SP’S AIRBUZ • Issue 4 • 2019
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from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts productivity. A recent CNN report quoted
NewsBriefs
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international. The international focus will continue with longer flights being introduced including to China and Hanoi.
EvEnts CalEndar
china helicoPter exPosition
10–13 October
Vistara to increase Fleet to 41 by the International expansion continues to end oF 2019
be a clear focus area and the airline seems very confident that it will be able to take on legacy carriers – both domestic and foreign.
China Tianjin Port Free Trade Zone, Tianjin, China
Mro euroPe
FlyinG riGhts oF Jet airways
15–17 October
ExCel London, London, UK
https://mroeurope.aviationweek.com/en/ home.html
allocated to air india
Bilateral flying rights with five countries that were allocated to Jet Airways, have now been temporarily given to Air India till the end of the summer schedule of this year, Civil Aviation Minister Hardeep Singh Puri said. As Jet Airways ran out of funds, it shut down its operations on April 17, 2019 which led to a sudden rise in domestic and international airfares. As a result, the government decided to temporarily allocate the domestic slots as well as international flying rights of Jet Airways to other airlines who could start new flights immediately and fill the gap.
nbaa business aViation conVention & exhibition (nbaa-bace)
22–24 October
Las Vegas Convention Centre, Henderson Executive Airport, Las Vegas, NV, USA
http://www.nbaa.org/events/bace/2019
Indian legacy carrier Vistara expects to end 2019 with 41 aircraft, up from 30 at present, as it pursues an international expansion plan, Chief Executive Leslie Thng said on August 7 this year. The carrier, a joint venture between Tata Sons and Singapore Airlines Ltd, completed its first international flight to Singapore on August 7 this year. The full service airline has announced plans to add routes from India to Bangkok and Dubai as it expects to benefit from the collapse of rival Jet Airways Ltd in April this year. Vistara has hired 600 former employees of Jet Airways, including over 100 pilots, Thng told reporters in Singapore.
dubai airshow 2019
17–21 November
DWC, Dubai Airshow Site, Dubai
indian Market For low-cost
(ꢀ iNDUsTrY NeWs
carriers to double
The Indian market for low-cost carriers (LCCs) is expected to double by financial year 2023, riding on rising incomes, tourism and a shift to air travel from rail travel. Interestingly, a study by Goldman Sachs indicates that the high-growth market serviced by the low-cost carriers in India is the third largest globally. “LCCs have been the only successful airline industry model in India over the long term. With faster turnaround and lower unit-cost, LCCs dominate the domestic market and are gaining share in shorthaul international routes. While we expect profitability to remain levered to aviation turbine fuel which constitutes 40 per cent of the operating cost of airlines, slowing global demand should keep oil prices low, while domestic air-traffic growth should remain decoupled from global trends,” the Goldman Sachs study said.
Fleet ModiFications by air France indiGo continues to Position aGGressiVely
Air France has announced that it has signed a Memorandum of Understanding with Airbus for 60 A220-300 aircraft. The deal also includes an additional 30 options and 30 acquisition rights which could potentially see an order of 120 aircraft. The aircraft are planned to be delivered from September 2021 and will replace the airline’s existing A218 and A319 fleet of around 51 aircraft. The airline has stated that the induction of A220-300 aircraft will allow the company to increase its com-
IndiGo ended the quarter with 217 aircraft effectively becoming the largest Indian airline by fleet. The mix was 71 A320neo, one A321neo, 130 A320ceo and 14 ATRs. The A321neo is the most recent addition to the fleet and gives them an instant capacity advantage of 19 per cent while lowers seatmile costs by 10 per cent. The A321s, for now, will be financed via sale and lease-
Mitsubishi to acquire crJ ProGraMMe FroM boMbardier
Mitsubishi Heavy Industries (MHI), the parent company of Mitsubishi Aircraft Corporation has entered into an agreement to acquire Bombardier’s Canadair Regional Jet programme. The agreement will see Mitsubishi pay Bombardier $550 million and assume liabilities of approximately $200 million. Mitsubishi will acquire the Canadian manufacturer’s maintenance, backs which will further strengthen IndiGo’s petitiveness by reducing its cost-per-seat cash position. Current plans call for the A321neo to be deployed mainly on international operations.
On the network, IndiGo now has dedicated 20 per cent of its capacity towards by more than ten percent compared to the aircraft it will replace. The airline also has 63 A320/A321 aircraft in its fleet which is likely be replaced with A320/321neo aircraft in the future.
4
• SP’S AIRBUZ • Issue 4 • 2019
from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts productivity. A recent CNN report quoted
NewsBriefs
aviation services valued at $9.1 trillion, leading to a total commercial market opportunity of $16 trillion through 2038.
appointmEnts
- atr
- GulFstreaM
Of the new airplane deliveries, forecasters say 44 percent will go toward replacing ageing aircraft while the rest will accommodate traffic growth. Together, the new jets will support an industry where passenger traffic will grow at an average 4.6 per cent and cargo traffic at an average 4.2 per cent. Factoring in the new airplanes and the jets that would remain in service, the global commercial fleet is expected to reach 50,660 airplanes by 2038. This is the first time the projected fleet has crested the 50,000 mark.
David Brigante, 59, has been nominated SVP Programmes and Customer Services of ATR, starting August 01, 2019. He will be reporting to the CEO, Stefano Bortoli.
Gulfstream Aerospace Corporation has made the following appointments:
•ꢀ ꢀChrisꢀEdwardsꢀasꢀRegionalꢀViceꢀPresi-
dent of Sales for Northern Europe, covering the United Kingdom, Ireland, the Netherlands and Scandinavia.
boMbardier
On August 19, 2019, Bombardier announced the appointment of Jeff Cole as Sales Director, Northeast United States to drive sales of Bombardier’s class-leading portfolio of business jets.
•ꢀ ꢀAlessandroꢀScarpelliniꢀasꢀRegionalꢀViceꢀ
President of Sales for Southern Europe, including Switzerland.
airPorts authority oF india dassault aViation
Regulator Airports Authority of India has appointed board member Anuj Aggarwal as its Chairman for three months, replacing Guruprasad Mohapatra who has joined the Ministry of Commerce as Secretary, Department for Promotion of Industry and Internal Trade.
Dassault Aviation has appointed Anne Devilliers as the Director, International Sales for Great Britain, Ireland, the Balkans and Greece. She will report to Gilles Gautier, Vice President, Falcon Sales at Dassault Aviation. Dassault Aviation has also appointed Carlos Brana as the Executive Vice President, Civil Aircraft. He succeeds Olivier Villa, who retired on July 1, 2019.
(ꢀ reGiONAL AViATiON
ProGress oF the udan scheMe
Eight additional routes under the regional connectivity scheme Ude Desh ka Aam Nagrik (UDAN) have become functional on July 19 and 20, 2019, taking the total number of operational routes to 194, the Ministry of Civil Aviation said in a statement. “With the addition of eight more routes, the total UDAN routes that are operational as on date have gone up to 194,” it added. The Ministry had launched the UDAN scheme on October 21, 2016 to stimulate regional air connectivity and make air travel affordable to the masses. The routes that have become operational in the recent past include
directorate General oF ciVil aViation (dGca)
The Appointments Committee of the Cabinet has approved the appointment of Arun Kumar, Additional Secretary and Financial Advisor, Ministry of Civil Aviation as Director General in the Directorate General of Civil Aviation (DGCA) in the rank of Additional Secretary.
dassault Falcon Jet
The Board of Directors of Dassault Falcon Jet has appointed Thierry Betbeze as the CEO of the wholly owned Dassault Aviation subsidiary, which is responsible for Falcon business aircraft marketing, sales and support in the Americas.
support, refurbishment, marketing, and sales activities for the CRJ Series aircraft remain the underlying drivers to support the Mysore-Hyderabad-Mysore, Goa-Mysoreprojected market demand. The up-to-150- Goa, Cochin-Mysore-Cochin and Kolkatawhich includes the related services and sup- seat segment will form an ever more integral Shillong-Kolkata. A total of 705 routes have port network located in Montréal, Québec, Toronto, Ontario and its service centres part of the global air transport eco system.
“Despite great results that have been been awarded under the UDAN scheme till now by the Ministry of Civil Aviation. located in Bridgeport, West Virginia, Tucson shown by the industry since 2015, when the and Arizona as well as the type certificates of the CRJ aircraft. Mitsubishi will also take over Bombardier’s interest in the Regional
EBIT Margin touched the unprecedented level of 8.6 percent, we have seen those margins falling, systematically: 8.5 per cent
