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SP's Avn 2 of 08 Cvr a with Corrected SP’s AN SP GUIDE PUBLICATION News Flies. We Gather Intelligence. Every Month. From India. AviationISSUE 2 • 2008 Singapore Airshow That BIG anymore? PAGE 24 Business Aviation & Growth of CORPORATE HOUSES PAGE 16 PLUS MUCH MORE... SPs AVIATION 210x267 M:Layout 1 26/07/2007 14.29 Pagina 1 ONLY YOU KNOW WHERE YOU ARE. DESIGN AND PRODUCTION OF ELECTRONIC DEFENCE SYSTEMS. Table of Contents Regular Departments SP’s AN SP GUIDE PUBLICATION 2 A Word from Editor News Flies. We Gather Intelligence. Every Month. From India. 3 NewsWithViews - Paramount expansion a pipe dream? AviationISSUE 2 • 2008 - Many twists to US spy satellite tale Military - Confusion Galore 10 TOP STORY 6 InFocus THE TRANS-ATLANTIC TANKER WAR - Superficial vs Substantial 13 UPGRADES 7 Forum DEFYING CONSTRAINTS - Little to Cheer - Expertspeak - Budget 15 INDUSTRY FACE TO FACE 32 NewsDigest PRESIDENT OF ELETTRONICA S.P.A. 36 23 TRAINING LastWord - BIAL: Protracted Delivery HAWKS ARRIVE IN INDIA Cover Story 16 16 CIVIL Cover Photo: ���� ������������������������ USINESS VIATION ENSE AVINGS New VLJs, like the Cessna ������������������������������������������������������������������ B A : S & S ���������������������� Business Aviation: Sense & Savings Mustang, are drastically ���������� As global travel becomes increasingly �������� cutting down the cost of ����������������� tedious with all the hassles posed by ������� Diplomacy chartering a private aircraft 22 US OFFICIAL VISIT elaborate security checks and airport ��������� transfers, the business jet has emerged by as much as 30 per cent �������� ����������� HOPE & CAUTION a far more attractive option ���������� ������ ������� Photo credit: Alan Peaford ����������������� Show Report PUBLISHER AND EDITOR-IN-CHIEF DESIGN 24 Singapore Airshow ’08: SPLIT TO SIZE Jayant Baranwal SP Guide Publications Team 28 DEFEXPO ’08: LAVISH SPREAD ASSISTANT EDITOR © SP Guide Publications, 2008 Arundhati Das Hall of Fame ANNUAL SUBSCRIPTION SENIOR VISITING EDITOR Inland: Rs 850 • Foreign: US$ 250 31 HANNA REITSCH Air Marshal (Retd) V.K. Bhatia Advt. details may be acquired from the contact information below: SENIOR TECHNICAL GROUP EDITOR Lt General (Retd) Naresh Chand SP GUIDE PUBLICATIONS P LTD Postal address Post Box No 2525, 10 SUB-EDITOR New Delhi 110 005, India. Bipasha Roy CORPORATE OFFICE A-133 Arjun Nagar, (Opposite Defence Colony), CONTRIBUTORS New Delhi 110 003, India. India Air Marshal (Retd) P.K. Mehra, Tel: +91 (11) 24644693, 24644763, 24620130 Air Marshal (Retd) Raghu Rajan, Fax: +91 (11) 24647093 Air Marshal (Retd) N. Menon, Air Marshal (Retd) REGISTERED OFFICE V. Patney, Group Captain A.K. Sachdev Fax: +91 (11) 23622942 Europe Alan Peaford, Phil Nasskau, Justin Email: [email protected] 22 Wastnage, Rob Coppinger, Andrew Brookes, Paul Beaver, Gunter Endres (UK) REPRESENTATIVE OFFICES BANGALORE, INDIA USA & Canada Sushant Deb, Lon Nordeen, Air Marshal (Retd) B.K. Pandey Anil R. Pustam (West Indies) 534, Jal Vayu Vihar, Kammanhalli Main Road, CHAIRMAN & MANAGING DIRECTOR Bangalore 560043, India. Jayant Baranwal Tel: +91 (80) 23682534 MOSCOW, RUSSIA Owned, published and printed by Jayant Baranwal, LAGUK Co., Ltd., (Yuri Laskin) printed at Rave India and published at A-133, Krasnokholmskaya, Nab., Arjun Nagar (Opposite Defence Colony), New 11/15, app. 132, Moscow 115172, Russia. 23 Delhi 110 003, India. All rights reserved. No part Tel: +7 (495) 911 2762 of this publication may be reproduced, stored in a Fax: +7 (495) 912 1260 retrieval system, or transmitted in any form or by any means, photocopying, recording, electronic, or otherwise without prior written permission of the www.spguidepublications.com Publishers. NEXT ISSUE: Maintenance for Corporate Aviation Issue 2 • 2008 SP’S AVIATION 1 A Word from Editor Defence allocation in the Budget has come as a dampener for Indian armed forces even as the share set aside for civil aviation somewhat reflected the sector’s dynamic growth. That, and high drama over a defence deal in the US makes for an engaging read. rue to our word to bring SP’s Aviation to you every opinion piece where he reiterates that a mere 10 per cent hike month, we feel privileged to present to our read- in the defence budget from the previous year may mean noth- ers the second issue of 2008 close on the heels of ing as, in real terms, the budget may have remained static or Defexpo 2008 held in Delhi’s Pragati Maidan from even declined. February 16 to 19. Away from home, the United States Air Force (USAF) finds TIn the cover story, Alan Peaford presents a world view of itself in the centre of a storm over a $40 billion contract for the growing popularity of business aviation that has in recent the supply of 179 Flight Refuelling Aircraft which it awarded years received an impetus as global travel becomes increas- to a consortium consisting of Northrop Grumman and Euro- ingly tedious with the numerous hassles posed by elaborate pean firm EADS. The country’s home company, Boeing—the security checks and airport transfers. Looking at Asia, the au- traditional supplier of air tankers not only to the USAF but also thor comments that India, with its greater number of million- to other air forces of allied/friendly countries—has not taken aires than anywhere else in Asia and record number of aspir- kindly to the snub. Far from it. Bewildered and angry, it has de- ing graduates and entrepreneurs, is a potentially huge market cided to file a formal protest asking the Government Account- for business aircraft. In reflection of this statement, just the ability Office (GAO) to review the USAF’s decision. In a short other day, a brand new hangar was commissioned at the do- time, the raging debate has acquired political and patriotic mestic side of the IGI airport at Delhi to service Hawkers. overtones. Even as Air Marshal (Retd) B.K. Pandey discusses Even as the civil aviation sector booms, Finance Minister P. threadbare the intriguing twists and turns in the so-called Chidambaram’s 2008-09 Budget, presented in Parliament on tanker war, the voices of reason are strident in their demand February 29, gave little cause for cheer to the Indian armed to be heard above the din raised by opponents of the deal. forces with industry pundits and senior servicemen insisting Finally, after almost a quarter of a century after the Indian that the allocation would fall short of realising the aspiration Air Force’s initial bid for an advanced jet trainer (AJT), the for rapid modernisation of the forces. A rather disturbing de- Hawks were formally inducted into the force at a small but velopment is the defence budget’s slide to less than 2 per cent glittering ceremony on February 23 at the air base at Bidar, of the GDP—for the first time since 1962. Analyses carried in heralding a new era in the history of flying training. the In Focus and Forum columns are further strengthened by Enjoy! former Chief of the Indian Navy Admiral (Retd) Arun Prakash’s DEFENCE MINISTER A.K. ANTONY RECEIVES A COPY Jayant Baranwal OF SP’S MILITARY YEARBOOK 2007-2008 Publisher & Editor-in-Chief 2 SP’S AVIATION Issue 2 • 2008 PARAMOUNT EXPANSION A PIPE DREAM? Views Chennai-based regional carrier Paramount Airways plans to start international operations by 2011. Managing Director M. Thiagarajan declared: “As soon as we finish five years of operations in 2010, we plan to start international operations.” Paramount Airways initially hopes to explore direct flight operations to select destinations on the lucrative European and US sectors. As part of its preparation to fly international, Paramount is currently holding final negotiations with US aerospace major Boeing and Toulouse-based aircraft manufacturer Airbus for acquiring at least 10 wide-bodied planes. An official said the airline is actively considering Boeing’s B 777 family of planes or Airbus A 330 as its final choice. The deal is likely to materialise and an announcement may be made during the ongoing Singapore Air Show 2008. NewsWith VIEWS aunched on October 19, 2005, Chennai-based Para- intentions to foray into the international arena with direct mount Airways is a low-cost airline in the private flights to the US and Europe, adds a perplexing dimension sector. Owned by Madurai-based textile giant, the to its strategic plan and is in jarring contrast to both its Paramount Group, the airline is unique on a number character and track record. For international flights to the Lof counts. Unlike other low cost or full service airlines in In- US and Europe, the airline would have to acquire a fleet of dia, its aircraft are configured to a combination of only first wide body jets either from Boeing or Airbus, necessitating and business class sections catering to a narrow segment of sizeable investments in human resources and infrastructure the society. The airline offers good value for money at highly associated with the induction of a new type of aircraft. Also, competitive prices. Also, Paramount whether the airline has the finan- Airways is the only airline in India cial resilience to muster the enor- to operate the Brazilian Embraer mous resources required over and family of aircraft. above the investment committed Over the last two-and-a-half for the expansion of the Embraer years of existence, Paramount Air- fleet, is not quite clear. It is also not ways has managed to build up its yet clear whether the airline has fleet to just five aircraft. In this plans to replicate its unique cabin period, the airline has essentially configuration adopted for the do- been validating its exclusive but mestic sector. In all probability, the somewhat doubtful business model. airline may opt for a more conven- Adopting an extremely conservative tional approach in this regard. approach, the airline has resorted Paramount Airways will com- to scaling down operations cutting plete five years of operation in out non-profitable sectors confining October 2010 by which time the operations to southern India to fo- airline intends to supplement its cus on profitability.
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