A SUPPLEMENT TO REGIONAL CONNECTIVITY SCHEME: UDAN LAUNCHED p3 SP’S AVIATION 11/2016 Volume 2 • issue 4 WWW.SPS-AVIATION.COM/BIZAVINDIASUPPLEMENT Pilatus PC-24 made its first public display of the twinjet at the NBAA 2016 PAGE 18 Will Trump Presidency Impact Business Aviation? VIKING TWIN OTTER SERIES 400 : UNMATCHED COMFORT AND VERSATILITY & PERFORMANCE FLEXIBILITY: LINEAGE 1000E P 12 P 15 CABIN ALTITUDE: 3,255 FT* • PASSENGERS: UP TO 19 • PANORAMIC WINDOWS: 14 OPTIMIZED COMFORT Space where you need it. Comfort throughout. The uniquely shaped cabin of the all-new Gulfstream G500™ is optimized to provide plentiful elbow, shoulder and headroom. The bright and quiet interior is filled with 100 percent fresh air pressurized to a cabin altitude lower than any other business jet. And with the new Gulfstream cabin design process that offers abundant cabin configurations, you can create your own masterpiece. For more information, visit gulfstreamg500.com. +91 98 182 95755 | ROHIT KAPUR [email protected] | Gulfstream Authorized Sales Representative TOLL FREE 1800 103 2003 +65 6572 7777 | JASON AKOVENKO [email protected] | Regional Vice President *At the typical initial cruise altitude of 41,000 ft CONTENTS Volume 2 • issue 4 On the cover: According to Ed Bolen NBAA President and CEO. this year’s NBAA-BACE was a resounding success. He said, “The activity level was high, and the enthusiasm was strong. Equally important, the show provided a reminder of the industry’s size and significance in the US and around the world.” Cover photograph by Pilatus Aircraft REGIONAL CONNECTIVITY REGIONAL CONNECTIVITY CONNECTIVITY 12 Versatility & Performance SCHEME 21 Business Aviation Pinning 3 UDAN launched FACt file Hopes on RCS 15 Unmatched Comfort and NEWS ENVIRONMENT Flexibility 23 news at a glance 7 Castles in the Air: Do We Have the Right Cultural BAOa eVENTS Environment to Bring in 17 BAOA’s Upcoming Events REGULAR an Aviation Boom? DEPARTMENTS SHOw reporT ECONOMY 2 from the editor’s desk 18 Will Trump Presidency 11 “No Plane, No Gain” Impact Business Aviation? A case for greater support for business aviation in India? www.sps-aviation.com/bizavindiasupplement BizAvIndia • ISSUE 4 • 2016 1 FROM THE EDITOR-IN-CHIEF Publisher And EDITOR-in-Chief Jayant Baranwal ASSISTAnt GrouP editOR R. Chandrakanth ADVISORy BOARD Jayant Nadkarni, President, BAOA Group Captain R.K. Bali (Retd), Managing Director, BAOA CHAIRMAN & MANagING DIRECTOR Jayant Baranwal PLANNING & BUSINEss DEVELOPMENT Executive Vice President: Rohit Goel ADMINSTRATION & COORDINATION Bharti Sharma ASSt – Admin, HR & INFRA Pooja Tehlani DESIGN Dear Readers, Creative Director: Anoop Kamath At the recent Aero Expo Conference in New Delhi, the business aviation community was in good Designers: Vimlesh Kumar Yadav, numbers as they are going to be an integral part of the government’s initiative of ‘enabling air con- Sonu Singh Bisht nectivity’. It is understandable that the community is waiting to see how the Regional Connectivity Research Assistant: Graphics Survi Massey Scheme (RCS) is going to play out in the coming months. While one can expect teething problems, industry experts believe that these can be navigated through, thanks to a proactive ministry. How- SALES & MARKETING ever, many of them have been expressing concerns on how the government entities are going to Director: Neetu Dhulia facilitate the ambitious plans of the government. Organisations such as the Directorate General of General Manager Sales: Rajeev Chugh Civil Aviation (DGCA) are still caught up in a time warp and needs to be shaken up. SP’s websiteS There are issues to do with Viability Gap Funding (VGF), issues to do with foreign regis- Sr Web Developer: Shailendra P. Ashish tered aircraft, issues to do with leasing, issues to do with training, etc, and all these need to be Web Developer: Ugrashen Vishwakarma addressed. The good thing is that there are conversations happening out in the open and the © SP Guide Publications, 2016 government is listening. The government has aptly chosen ‘UDAN’ (flight) as its emblem for RCS and the acronym for ‘UDAN’ is Ude Desh ka Aam Naagrik (the common man will fly) and ADVERTISING that cannot happen just with commercial airlines, but with regional players, general aviation [email protected] and business aviation segments. It is going to be a coordinated movement. [email protected] Another ingredient in this growth enabler, according to Colonel Sanjay Julka (Retd) SP GUIDE PUBLICATIONS PVT LTD is the need for a cultural shift amongst all stakeholders of the aviation industry, besides of A-133 Arjun Nagar, course how the nation perceives ‘air travel’. In recent years, that perception has changed and (Opposite Defence Colony) the ‘common man’ is taking to the air than previously ever. Similar shift is expected in the New Delhi 110003, India. way business aviation is perceived. Various industry bodies have been working to remove the Tel: +91 (11) 24644693, 24644763, 24620130 perception that business aviation is a luxury and foremost of the bodies, the National Busi- Fax: +91 (11) 24647093 ness Aviation Association (NBAA) of the US has been aggressive in its campaign ‘No Plane, No E-mail: [email protected] Gain’. At this year’s Business Aviation Conference in Orlando, which was a resounding success, experts were quick to point out the economic benefits of business aviation, moving workforce Owned, published and printed by Jayant to locations which have poor accessibility. According to the NBAA, business aviation contrib- Baranwal, printed at Kala Jyothi Process Pvt Ltd utes more than $150 billion to the US economy each year, has a positive effect on the balance and published at A-133, Arjun Nagar (Opposite Defence Colony), New Delhi 110 003, India. All of trade and supports 1.2 million manufacturing and service jobs. Endorsing this is Claudio rights reserved. No part of this publication may Camelier, Vice President of Embraer Executive Jets, who states that it took many years for be reproduced, stored in a retrieval system, the United States business aviation industry to get to where they are and we see the potential or transmitted in any form or by any means, of business aviation in India. While supporting and applauding the efforts of the BAOA, he photocopying, recording, electronic, or otherwise expects business aviation to flourish in the not so distant future. without prior written permission of the Publishers. Happy reading! J. Baranwal Editor-in-Chief 2 BizAvIndia • ISSUE 4 • 2016 www.sps-aviation.com/bizavindiasupplement RELENTLESS JOURNEY OF REGIONAL CONNECTIVITY SCHEME EXCELLENCE SINCE 1964 UDAN Launched The primary objective of RCS is to facilitate/stimulate regional air connectivity by making it affordable By R. Chandrakanth he Indian civil aviation landscape is in the process of target the first flights under UDAN to take off by January 2017.” The major transformation and the Ministry of Civil Aviation crux of the scheme is to make flying accessible and affordable to the took another giant leap towards that – by launching the vast majority of people living in the hinterland. UDAN (flight) is also Regional Connectivity Scheme under the name of ‘UDAN’ an acronym in Hindi Ude Desh ka Aam Naagrik (the common man of A C O which means flight. UDAN seeks to get more people to fly the country will fly). M H: P Tfrom smaller towns and cities, from unserved and underserved areas Echoing this view, the Minister of State, Jayant Sinha said the to the metros, connecting India like never before. Launching UDAN, scheme is “to get those wearing hawai chappals on to an aircraft. We PHOTOGRA the Minister of Civil Aviation, P. Ashok Gajapathi Raju, said: “We will have tried to make costs of flying lower to serve underserved and www.sps-aviation.com/bizavindiasupplement BizAvIndia • ISSUE 4 • 2016 3 REGIONAL CONNECTIVITY SCHEME other routes.” ‘Udan’ is said to be the first of to fund the scheme,” according to Choubey. The its kind globally wherein it would jump-start new levy on airlines is yet to be announced, he the regional aviation segment in India. “We added. VGF will be provided for RCS flights for are very hopeful of a positive response from a period of three years from the date of com- the industry but our thinking is that with mencement of operations of such RCS flights the scheme, we will in fact be jump-starting (tenure of VGF support). regional aviation,” Sinha said while exuding It may be recalled that earlier this year the confidence that the scheme would be “quite Ministry of Civil Aviation had released NCAP attractive” for consumers, carriers, small and 2016. One of the objectives of NCAP 2016 is to regional airlines, lessors and other players in “enhance regional connectivity through fiscal the ecosystem. The government would create support and infrastructure development.” a new category of scheduled commuter opera- As per an ICAO study “Economic benefits tors to enable people to enter and get started in We will target the first of civil aviation: ripples of prosperity”, the out- the regional space, he added. flights under ‘Udan’ to take put and employment multipliers of aviation off by January 2017. The Civil Aviation Minister tweeted are 3.25 and 6.10 respectively. This implies — P. Ashok Gajapathi Raju, “Growth rates in civil aviation encouraging; that every 100 rupees spent on air transport Minister of Civil Aviation intend to keep the momentum.” RCS is one of contributes to 325 rupees worth of benefits, the key elements of the National Civil Aviation and every 100 direct jobs in air transport Policy (NCAP) 2016, which envisions domes- result in 610 jobs in the economy as a whole. tic ticketing of 30 crores by 2022 and 50 crores In fact, the study attributes over 4.5 per cent by 2027.