Rotary: An Essential Cog For RCS

Presented to: Shri P. Ashok Gajapathi Raju November Hon'ble Minister of Civil Aviation Shri Jayant Sinha 2017 MoS Civil Aviation

TITLE Rotary: An Essential Cog for RCS

YEAR 2017

AUTHOR AUCTUS ADVISORS

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Contents 1. Introduction ...... 16 2. Global Outlook - Helicopter Market...... 17 2.1 Global Helicopter Market Overview ...... 17 2.2 Overview of Asia Market ...... 20 2.3 Helicopter Market Global Forecast ...... 21 3. Indian Helicopter Market ...... 23 3.1 Indian Helicopter Market Overview ...... 23 3.2 New Civil Aviation Policy (NCAP) 2016 ...... 23 3.3 Optimism in the Market: Contracts with the Global Helicopter Majors ...... 24 3.4 Major Helicopter Operators ...... 25 4. Regional Connectivity Scheme ...... 29 4.1 Illustrative Example of VGF ...... 29 5. Helicopters in : Key Use-Cases ...... 31 5.1 Remote Area Connectivity ...... 31 5.2 Energy Sector and Offshore Operations ...... 32 5.3 Emergency Medical Services ...... 32 5.4 Heli-Tourism ...... 33 5.5 Law Enforcement ...... 34 5.6 Shuttle Services ...... 34 6. Way Forward ...... 35

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1. INTRODUCTION

The global helicopter market is primarily Corporation of India in 1986 (later renamed to divided into civil and defence helicopter Helicopters Ltd.), provided the segments. Civil helicopters are used by first boost to the civil helicopter industry in government bodies for providing law- India, which now holds and operates the enforcement activities, and emergency largest fleet in the country. While the overall response services. Other than government fleet size had reached close to 300 in 2012, the bodies, civil helicopter market caters to same has seen a decline in the beginning of commercial segments such as Oil & Gas 2013 due to factors purely related to high cost companies, VIP transportation providers, of operations and regulatory bottlenecks, corporate offices, and local tour providers. rather than the market prospects which Among various helicopter types (viz. single- continue to be positive. engine, light-twin, medium and heavy), single- Turbine fuel, customs duty for import of engine helicopters have remained most helicopters/spares and application of fixed popular in the civil helicopter market. wing air traffic rules to helicopters have However, light-twin engine and medium stymied the growth of civil helicopter industry helicopters fleet is also picking up pace. to a large extent. Another major problem is Global five-year demand for helicopters is lack of infrastructure. While the scope of expected to be around 3,900-4,400 over 2017- operations and utilisation for commercial 21. Asia and Latin America will continue to helicopters is vast, the requisite infrastructure have highest fleet replacement and expansion is almost non-existent both in the metros and expectations and remain the world’s third remote areas. largest regional market, following North Despite these bottlenecks, India, due to its America and Europe. Drivers for these terrain and vastness, offers phenomenal expectations are aircraft age and condition, potential for usage of civil helicopters for contractual requirements, expiring warranties public good. However, for this industry to grow and regulations requiring twin engines (off and become viable, there is a need to expand shore operations). This is further supported by the utilization of helicopters in line with the the fact that the helicopter usage for global trends, for a variety of purposes such as corporate, emergency medical services (EMS), EMS, tourism, law enforcement, etc. The utility and training is increasing manifold in Ministry of Civil Aviation (MoCA) strategy for these regions making the helicopter a value the civil aviation sector includes providing add in the current business environment. impetus for growth of helicopter industry. This India’s civil aviation market is today among the is manifested by the announcement of fastest growing in the world, but helicopter use dedicated rules for the helicopter industry, remains very limited. From the time the first including freedom to fly from point to point civil helicopter was flown in India in November without prior ATC clearance in airspace below 1953 and up to 1986 the commercial use of 5000 feet, and increased viability gap funding helicopters in India was limited to small (VGF) for the second round of bidding under aviation companies involved in communication the Regional Connectivity Scheme (RCS). This and crop spraying. The growth of civil report outlines the dynamics of the Indian helicopter fleet in the early years was very helicopter market and potential use cases for modest. The formation of the Helicopter the rotorcraft.

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2. GLOBAL OUTLOOK - HELICOPTER MARKET

2.1 Global Helicopter Market Overview

The first six months of 2017 (H1 2017) saw civil helicopter orders increased to 151 for H1 2017 helicopter shipments increase by 24% to $1.88 from 127 for H1 2016, and 190 deliveries in H1 billion, compared to the same period in 2016. 2017 resulting in 9% increase in revenues over According to a report published by the General H1 2016 (163 units delivered). This report is Aviation Manufacturer’s Association (GAMA), positive news for the helicopter industry, OEMs delivered a total of 465 piston- and where sales of new rotorcraft have been down turbine-powered rotorcraft between January in recent years, and forecasts have consistently and June 2017, an increase of 16.8% over the been flat or down, impacted by a slow global same period the previous year. Airbus half- economic growth environment and volatility in yearly results show a similar trend with net oil and gas-related markets.

Figure 1: Annual Civil Helicopter Deliveries (turbine only) by 4 major OEMs globally.

2013 364 213 131 63

2014 324 178 102 59

2015 279 175 96 29

2016 255 97 113 27

0 100 200 300 400 500 600 700 800

Airbus Bell Leonardo Sikorsky

Source: GAMA, Airbus Note: 1. For 2013-15 we show GAMA reported deliveries. In 2016, we show Airbus reported deliveries. 2. NH90 is included in Airbus military helicopters; a partnership between Airbus (62.5%), Finmeccanica (32%) and Fokker (5.5%).

The global civil helicopter market is highly Helicopter operators have shown interest in consolidated with top five players including purchase of technologically advanced medium Airbus, Leonardo, Bell Helicopter Textron Inc., civil helicopters specifically for application in Sikorsky, and Russian Helicopters, accounting law enforcement, firefighting, and medical for more than 70% of revenue in the global services. Key manufacturers are specifically market. The major players are investing huge focusing on Latin America for expansion of civil capital to develop light and medium civil helicopter fleet, as the operators in the region helicopters with advanced security features show strong purchase intention in the coming and technology. Remaining 30% of the market year for civil helicopters. Similarly, OEMs are is captured by small players including Korea also investing in the Asia-Pacific region for the Aerospace Industries, Ltd., Robinson expansion of the civil helicopter fleet. Helicopter Company, Hindustan Aeronautics

Limited, and MD Helicopters. Reduced Demand from Oil & Gas sector

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The three years since the significant reduction with global OEMs continuously developing in oil prices which began in July 2014 have helicopters with specialized safety features been a challenging time for the oil and gas specifically designed to perform offshore industry and also the helicopter operators activities. However, it soon became clear that which support them. It has proved to be the this was not the case and that more drastic most severe downturn experienced for many action was required by the oil companies to cut years. The period has included the temporary costs. Since that time, there has been a 13% grounding of one of the sector’s leading types decline of the in-service fleet to around 1,720, and the bankruptcy filing of its largest with the major reduction occurring in Q2 2016 operator, CHC Helicopter Services. when the H225 and AS332L2 were temporarily grounded and CHC began fleet cuts during its According to a report by FlightGlobal, new Chapter 11 restructuring. CHC and its joint deliveries for offshore operations have fallen ventures have reduced their offshore fleet dramatically, after a ten-year period from the from some 170 to 100 in service and CHC mid-2000s averaging 120 annually, to just 37 in emerged from Chapter 11 in March 2017. 2016 - with 19 in the first eight months of 2017. However, it is noticeable that the fleet has Before the oil price downturn, 91.1% of oil rigs remained relatively stable since then, with the were utilized whereas the utilization had main change being the addition of 26 new dropped to 77.8% in January 2016. When price super mediums. This stabilisation may indicate was over $100 per barrel in 2014, there were we have reached the bottom of the downturn some 1,950 helicopters serving the oil & gas in fleet terms. industry, principally supporting 8,000 production platforms and around 900 available In terms of region of operation, the North exploration drilling rigs and jackships. The fleet American fleet has always been the largest, at had grown by almost 50%, an additional 600+ 30% of the global total, mainly due to many aircraft in the ten years to the end of 2014 and small helicopter types serving the Gulf of the fleet continued to increase after the oil Mexico. However there has been a reduction price fell, peaking at some 1,980 in service by over 120 helicopters, some 22% of the fleet during Q1 2015. since Q1 2015. Most of the reduction has been in smaller types like the Bell 206, although the There was uncertainty about whether the medium AW139 and S-76 have also reduced. lower oil price was just a ‘blip’ in the market Figure 2: Change in Regional Helicopter Fleet for Offshore Operations from 2015-17.

Middle East 8%

Africa -5%

Latin America -20%

Asia Pacific -11%

Europe -8%

North America -21%

-25% -20% -15% -10% -5% 0% 5% 10%

Source: Flight Global

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The second highest reduction has been in the taken over by the private sector. As defence third largest market, Latin America, by over 70 budgets have tightened, governments across aircraft, with 80% of that accounted for by the world see SAR as less a military priority and Brazil, which has suffered from both economic more a “blue light” operation, like that of the and oil downturns, plus corruption scandals in police, fire service or ambulance. Military the oil industry. The brunt of the cuts has fallen crews on stand-by waiting around for an on the medium S-76 and Bell 412 fleets. emergency call would be better off being transferred to front-line units where they can Asia Pacific was an important growing market put their expensive training to better use, prior to the downturn but has seen its fleet fall while new technology has prompted those in by almost 50, with Malaysia and Australia government to look to the private sector being the most affected. The region has where private operators have repeatedly maintained its 21% share of the fleet and has shown they can bring aircraft into service on increased its S-92 fleet by 16 to partly replace time and with a minimum of fuss compared 40 grounded H225s, only six of which are back with their colleagues in military uniform. in service to date. Ageing fleet has been another major driver Europe’s fleet has fallen relatively modestly, by behind this move as the countries are looking just 21 aircraft – some 8%. Although the North to save on fleet replacement costs. Sea sector was significantly affected by the One of the major examples is from UK, where H225 situation – with 40 grounded, there has Limited won the contract been capacity realignment and increased use in 2013 to deliver Search and Rescue of smaller types like the super mediums. Africa Operations on behalf of the Maritime and has seen a modest 5% reduction, mainly due to Coastguard Agency. The government will pay a grounding of eighteen H225s and AS332L2s. monthly standing charge and a second variable The only region to see a slight increase in the service charge based on flying rates, fuel and fleet is the Middle East – where there is no other ancillary items. The company has exposure to the heavy fleet. The modest ten budgeted for the 22 aircraft to fly a combined aircraft increase is almost all the smaller total of 10,000 flying hours a year. Seven of ten helicopters and includes new deliveries in Iraq. strategically located bases took over the helicopter civilian SAR responsibility from the There are signs in mid-2017 that there is more Royal Air Force and Royal Navy in a phased optimism in the oil and gas industry. The approach throughout 2015 and 2016, while the modest rise in oil prices and a more efficient remaining three became part of the contract in cost structure is leading to some new 2017. investment and a hope that the exploration downturn has stabilised, with the number of In Spain, Avincis-owned Inaer flies a mix of active drilling rigs being up 40% in mid-2017 rotary-wing assets for the Spanish Maritime over the previous year. It is likely that a portion Safety Agency while Airbus Defense and Space of the fleet will gradually return to service in operates the CASA CN-235 fixed-wing patrol the developing markets in Asia, Africa and Latin aircraft. Oil and gas operator CHC provides America. Sikorsky S-76s for the Royal Australian Air Force flying SAR missions from key air bases Privatization of Search and Rescue (SAR) around the country's vast coastline. The same Operations company has also just introduced new modern Helicopter search and rescue has long been Sikorsky S-92s for use on a SAR contract on within the purview of governments and their behalf of the Irish Coast Guard. militaries, but the role is increasingly being

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Helicopter-based search-and-rescue capability increasingly needed to rescue people in the is also becoming a key factor for the oil more challenging extremes of weather and industry too, which has increasingly recognized geography, but the question remains whether that as its platforms move farther offshore, governments can afford to do it themselves. reaction times for land-based SAR assets would 2.2 Overview of Asia Market be too slow. So, several operators have been contracted to provide aircraft based on In comparison to the other regions, the Asia- platforms at sea to provide a quick-reaction Pacific civil helicopter market has not shown capability to emergencies such as ditched much growth. At the end of 2016, the civil crew-change helicopters, men overboard and helicopter fleet (turbine only) numbered medical evacuations. This strategy is already in 3,924, an increase of 4% over 2015. The use in the North Sea where two helicopters, increase is notably smaller than in past years, operated under Project Jigsaw provide 24X7 with only half of the 34 countries experiencing coverage, one from a land base at Sumburgh, y-o-y growth. China remained the region’s the other on BP's Miller platform. Bristow also growth driver – as it has for the past few years provides a single Eurocopter EC225 to support – adding 85 helicopters in 2016, an increase of SAR for Norwegian offshore platforms based in 21% y-o-y. Although this is slightly down from Hammerfest in the very north of the country. 2015, the Chinese government is working to boost the country’s general aviation industry, In the near future, SAR operations are likely to through the easing of airspace and other be provided to sites with a growing oil and gas operational regulations, infrastructure industry, such as the coast of West Africa development and investment in local aircraft where there is little or no government production. provision of such a service. New technology is

Figure 3: Growth in Fleet size of Asia-Pacific Market – Break up by OEM and Size.

2016 3924

2015 3761

2014 3589

0 500 1000 1500 2000 2500 3000 3500 4000

Airbus Bell Leonardo MD Sikorsky Others

2016 3924

2015 3761

2014 3589

0 500 1000 1500 2000 2500 3000 3500 4000

Single-Engine Light Twin-Engine Medium Heavy

Source: Rotor.org

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The Asia-Pacific region’s fleet continued to be provide growth potential for the market during largely positioned in four countries – Australia, the forecast years. Countries such as China, Japan, China and New Zealand – with a 61% Brazil and India have a huge market potential, share in the total fleet. Australia represents the as the government is spending huge capital for largest market overall with 805 helicopters and developing their civil and military helicopter is the largest market for Bell. It is followed by fleet. Ageing helicopter fleet, increasing usage Japan, the largest market for Airbus and of helicopters in disaster relief, and Leonardo, and China, the largest market for technological advancements are some of the Sikorsky. In terms of fleet size, the big 3 OEMs major factors driving the growth of the global (Airbus, Bell, and Leonardo) collectively make helicopter market. up nearly 80% of the market, with Airbus A similar study by Airbus Helicopters predicts leading at 43% market share. that market growth will drive a requirement Today, the Asia-Pacific fleet includes a wider for nearly 22,000 new civil and parapublic variety of helicopter mission profiles than ever helicopters globally over the next two decades, before, with 54% of the fleet in multi-mission almost doubling the current global fleet. The use, followed by 12% for corporate and report forecasts a total of 21,822 new commercial rotorcraft worth €125 billion ($147 private, 9% for offshore operations, 7% for SAR billion) will be acquired by 2036. and 5% for EMS. In replacement cost terms, offshore has become the largest segment, with Emerging economies represent the largest 21% of the fleet, followed by SAR at 11%. slice of demand, at 80%, whereas mature regions, notably North America and Europe, A more recent shift in the Asia-Pacific fleet has will take 65% of those rotorcrafts required as been the usage by local operators of aircraft replacements. Light single- and twin-engine dry-leased from dedicated aircraft leasing helicopters will dominate, accounting for companies. By year end 2016, Asia Pacific’s 16,234 combined sales, or 74% of the total. operators were musing more than 170 However, the larger, more expensive medium, helicopters dry leased from third parties, with super-medium and heavy-twin platforms will a replacement cost of approximately US $1.5 represent a combined 51% of the order value, Bn. Australia had the largest number of leased Airbus forecasts. helicopters at 60, operating in a variety of roles The largest market segment in terms of from offshore, EMS and multi-mission. India deliveries and value will be commercial – which follows with 28, used mainly in the offshore includes utility and transport missions – segment and Indonesia is next with 25, with accounting for representative figures of 39% the majority used for multi-mission operations. and 31%. At the other end of the scale, the weakest performer will be the energy sector, 2.3 Helicopter Market Global Forecast representing just 8% of deliveries and 14% by value. At the Heli-Expo hosted by Helicopter Association International at Dallas, US in In addition, Airbus Helicopters predicts that March 2017, Honeywell Aerospace’s annual 2017 will mark a return to growth for civil rotorcraft outlook forecasted 3,900 to 4,400 helicopter sales, with the market having fallen civilian-use helicopters will be delivered from by about 30% over the past five years. This is 2017 to 2021, roughly 400 helicopters lower supported by the fact that the first-half figures than the company’s 2016 five-year forecast. from all the manufacturers have shown growth The increasing compliance for helicopters in in excess of 3%. the emerging economies is expected to

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Regional Round up – Helicopter Purchase Outlook

Figure 4: Regional Split of in-service Helicopter Fleet (turbine only) based on Operator’s Location.

5% 2% 13% 35%

16%

28%

North America Europe Asia Pacific Latin America Africa Middle East

Source: Flight Global’s Fleets Analyzer Database (September 2015)

Note: An additional 1% of the fleet has not been included in the above chart for helicopters based in unknown locations.

The North American region represents 35% of regions, with up to 22% of operator fleets the current world fleet of civil helicopters. slated for turnover with a new helicopter Therefore, its purchase plans are always a replacement or addition. However, purchase significant component of the total forecasted plans are 8% lower compared with 2016 survey demand. Purchase expectations fell by more results. Close to 80% of planned new than 2% in this year's survey, down for a helicopter purchases are intermediate and second year since 2015. More than 75% of medium twin- engine models. planned North American purchases were Europe’s purchase plans decreased by more identified as light single-engine models, while than 3% in this year's survey, down for a just 13% of new purchases were slated as second year in a row. The sample of Russian intermediate or medium twin-engine models. operators responding in the 2017 survey Latin America led all global regions in the rate remains small, which continues to add some of new aircraft purchase plans, but is down uncertainty to the overall European results. year over year and impacted by weak Excluding heavy-twin helicopters, European economic performance in Brazil and purchase intentions currently tend to favour all Venezuela. The 2017 results show lower fleet classes in nearly equal shares this year. replacement and growth expectations Overall buying plans slipped about 1% for Asia compared with 2016 results. Still above the Pacific, despite of the solid results from China, world average, the purchase plans have Australia, South Korea, Japan and Malaysia. declined more than 13% compared with the Operator purchase plans continued to drift prior year. Latin American operators currently slightly lower compared with the past few favour light single-engine models, years in the 2017 results. APAC operators representing almost 60% of their planned tended to focus more on corporate and oil and acquisitions, followed by intermediate and gas end uses for their new purchase plans, and medium twin-engine platforms. consequently, intermediate and medium twin- Middle East and African region have a engine helicopters were the most popular combined share of mere 7% in the global civil models in their new aircraft plans. India held helicopter fleet. However, they have the fairly steady year-over-year based on the second-highest new purchase rate among the limited input received from its operators.

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3. INDIAN HELICOPTER MARKET

3.1 Indian Helicopter Market Overview staggering 70% utilization as reported by Pawanhans in March 2017. This is in contrast India has an astonishingly smaller fleet of to the global utilization of only 35% by the helicopters when compared with the world corporates. Among the other uses (12%) for population of civil helicopters. As per the Indian fleet, 10% utilization comes from the available data, out of a total world civil transfer of VIP guests taking the total to 80% helicopter population of 34,000 plus, India for corporates and VIPs combined. While accounts for less than one per cent. In fact, almost one-third of helicopters worldwide are India currently has fewer civil helicopters than being used for law enforcement and Switzerland. In Brazil – a developing country emergency medical services (EMS), this is like ours – the city of Sao Paulo (similar to almost non-existent in India. The government Bombay and ) itself has about 750 has tried to address this gap in the use of helicopters. This is also because of the limited helicopters for EMS and other purposes such use that the helicopters are put to, in India. as tourism, regional connectivity, etc. through A wide majority of the Indian helicopter fleet is the New Civil Aviation Policy launched in 2016. utilized by the corporates, resulting in a Figure 5: Comparison of Utilization% of Global and Indian Civil Helicopters

80% 70% 70%

60%

50%

40% 35%

30% 20% 18% 20% 15% 12% 12% 8% 10% 7% 1% 1% 1% 0% Corporate Oil&Gas EMS Law Multi-Mission Others Enforcement

World India

Source: Pawan Hans (2017) 3.2 New Civil Aviation Policy (NCAP) 2016 helicopters which is very low as compared to other developing nations. To bridge this gap, The NCAP 2016 acknowledges the key role the government has enumerated several played by helicopters in remote area progressive steps for Helicopters and MRO connectivity, intra-city movement, tourism, services. law enforcement, disaster relief, search and rescue as well as emergency medical The new policy talks about having separate evacuation. It laid emphasis on the fact that regulations for helicopters by DGCA after due India currently has less than 300 civilian stakeholder consultation, and creation of a

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separate helicopter office in DGCA. Today, not require any operational clearance, commercial operations are governed by including landing at accident and emergency stringent Civil Aviation Requirements, sites from any agency except Air Defence periodically issued by DGCA. Operators Clearance. No landing charges and Route complain that air traffic control treats Navigation Facility Charges (RNFC) will be helicopters like fixed-wing aircraft which, at levied for HEMS operations. This move has times, lead to unnecessary increase in the already triggered major deals with U.S. flight duration even for the smaller routes. companies. India is set to soon have its first air Under the new policy, helicopters will be free ambulance service through a partnership of to fly from point to point without prior ATC US-based Air Medical Group Holdings and clearance in airspace below 5000 feet and in India’s Aviators Air Rescue. They have ordered areas other than controlled airspace, three Airbus H130s. Global Vectra Helicorp and prohibited and restricted ones, after obtaining Era Group also are developing HEMS for the the Air Defence clearance and intimating the Indian market. necessary information (origin, destination, NCAP 2016 also focuses on development of ETA, ETD, etc.) to the nearest ATC. For this, the MRO business in line with the broader Make in Ministry of Defence and the Ministry of Civil India initiative. The Government is keen on Aviation (MoCA) will set up a web-based developing India as an MRO hub in Asia, and platform. attract business from foreign airlines. As part To promote regional connectivity and address of this, the Government has exempted tool- kits for MRO and parts required to be used in the lack of infrastructure, the government will aircrafts from custom duty. Additionally, to facilitate the development of at least four heli- enable economies of scale, government has hubs initially, across the country. The first increased the restriction of using duty free heliport, built by Pawan Hans for the ministry parts from 1 year to 3 years. Airport royalty at Rohini in northwest Delhi, is already and additional charges will not be levied on operational. Additionally, AAI may earmark MRO service providers for a period of five years land for helicopter operations at AAI airports from the date of approval of the policy. on appropriate commercial terms from where All these initiatives when seen in consonance helicopters can operate without interfering with the instructions of creating a separate with fixed wing traffic. Also, the policy aims to helicopter cell in DGCA is a statement of intent rationalize the airport charges for helicopter on the part of the MoCA to provide necessary operations. stimulus to civil helicopter aviation and is an The national policy also targets the indication of an evolving roadmap for development of helicopter emergency medical promoting helicopter operations. services (HEMS), a sector triggering ambitions 3.3 Optimism in the Market: Contracts with among Western companies. Airbus Helicopters the Global Helicopter Majors said there are 2,000 helicopters worldwide used for emergency medical services (including With the recent policy changes and the 1,100 in North America), but there’s only a government’s improved focus on the aviation handful in India. The MoCA will coordinate industry, the global market is bullish on the with other government agencies, insurance India helicopter story. This is demonstrated by companies, hospitals and operators, including the establishing of joint ventures in India by Pawan Hans, to facilitate operations. DGCA will global helicopter majors like Agusta Westland, bring out regulations stipulating that Sikorsky and Eurocopter, hoping that local helicopters under HEMS operations shall not production will give them an edge as they be used for any other purpose. Such being the compete to win orders from Indian helicopter case, helicopters under HEMS operations will operators.

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In February 2017, Airbus Helicopters has Airbus helicopter production line in France, signed a Memorandum of Understanding with where they will be integrated with the rest of Pawan Hans Limited (PHL) appointing the the airframe assembly. In a similar move, US- Indian helicopter operator as Airbus based Bell Helicopters has entered into a Helicopters’ approved maintenance centre for contract with Tata Advanced Systems Ltd the Dauphin and Ecureuil rotorcraft. The MoU (TASL) to jointly develop commercial and has the provision to enlarge PHL’s scope of government rotary wing markets in India, maintenance services in the future to include including potential production and assembly, other Airbus helicopter types. Currently, training, maintenance, repair and overhaul Pawan Hans is the world’s largest operator of (MRO), research and development (R&D) and the civil Dauphin fleet with 32 helicopters, and technology sharing. an additional 2 Ecureuil rotorcraft takes its Such contracts bear testimony to the fact that total count of Airbus helicopters to 34. the major OEMs foresee India playing a larger Earlier in October 2015, Global Vectra had role in the helicopter market and therefore, inked a pact with European aviation major are looking to make the best use of this Airbus, which entails replacement of defective opportunity. Also, these developments will components of its H130 helicopters within 24 play a crucial role in helping India become a hours with no upfront payment. Global Vectra manufacturing hub, as envisaged by Helicopters Limited (GVHL) was the first government’s ‘Make in India’ campaign. customer globally to select this newly re- 3.4 Major Helicopter Operators designed cost-effective 'parts-by-the-hour' (PBH) contract for light helicopters. According Today, there are approximately 284 civil to Airbus, the programme also provides the registered helicopters in the country, with operator an enhanced availability of fleet, about 76 commercial operators but Indian civil stable maintenance cost, and reduces the need helicopter market is largely dominated by a to keep inventory. handful of players. Pawan Hans has the largest fleet among all the Indian operators and it Interestingly, the global OEMs have also inked contributes more than 15% to the country’s deals to jointly develop the helicopter market total helicopter fleet. The top 3 operators – in India with the local companies. Airbus Pawan Hans, Global Vectra and Himalayan Helicopters awarded a contract to India's Helicharters – account for more than 85% of Mahindra Aerostructures in 2016 to make the total number of flights operated annually airframe parts for its Panther military chopper over the last three years (2014-17). series. The parts will be shipped directly to the Table 1: Fleet Size of Major Indian Helicopter Operators

Pawanhans Global Vectra Himalayan Heli Helicopter Fleet Size 46 29 6 Source: Company Reports

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Figure 6: Market Share of Top 3 Indian Helicopter Operators – in terms of number of flights operated.

100 11.2 80 19.2 17.9 22.3 60 36.7 35.6 40 59.0 20 31.1 30.9

0 2014-15 2015-16 2016-17 Pawan Hans Global Vectra Himalayan helicharters

Source: DGCA Pawan Hans including meeting the requirements of vital offshore support services. It has cumulatively Pawan Hans Ltd. (PHL), a flown more than 1 million hours and has had Enterprise under the Ministry of Civil Aviation, 2.5 million landings on its fleet since its has been playing pivotal role in providing air formation. The company currently has a fleet connectivity across the country by way of size of 46 helicopters and operations from 21 regular passenger services, charter services base stations across the country.

Figure 7: Spectrum of Pawan Hans’ Operations

Source: Pawanhans (2017)

PHL is often engaged for providing services to service for devotees, and services to BSF and various state governments in India, particularly Police for Medical and Logistics in the North-east. It is also involved in running support in event of maoist attack on troops. It Inter-island ferry services in Andaman & jointly owns , India's first amphibious Nicobar Islands, and . It also aircraft service with the Andaman and Nicobar provides Amarnath & Kedarnath Helicopter Islands administration.

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The company has been providing helicopter course in Bachelor of Science (aeronautics) and support for offshore operation of ONGC for Aircraft Maintenance Engineering. The carrying its men and vital supplies round the Bachelor course will be affiliated by the clock to drilling rigs situated in Bombay off- University while the engineering shore platforms. It operates to ONGC’s Rigs certification will be awarded by Pawan Hans (mother platforms and drilling rigs) and and recognized by DGCA. production platforms (wells) within a radius of Global Vectra 130 nm. from the main land at Mumbai. PHL is also providing helicopter services to NTPC, Oil Global Vectra Helicorp Limited (GVHL) is the India Limited, GAIL, GSPC, British Gas, etc. largest private helicopter company in India, with a fleet of 29 rotorcraft ranging from small Pawan Hans owns a state-of-the-art heliport at light helicopters to medium-sized twin engined Rohini which was inaugurated on February 28, helicopters seating 4 to 15 passengers. It is 2017. The heliport, located north west of New known for providing seamless, safe and Delhi, is the first of its kind in the country. The accident free helicopter services for almost heliport is expected to reduce congestion at two decades. The spectrum of operations of the IGI Airport and provide air connectivity to the company encompasses support to India’s nearby pilgrimage centres besides medical Offshore Oil & Gas industry, Onshore emergency evacuation services. The company operations for State governments (VVIP flying), has commenced helicopter rides from the election flying, heli pilgrimage and much Rohini Heliport for the visitors to experience more. The company also pioneered the use of aerial view of the city (Delhi Darshan) by paying helicopter operations in the conduct of Rs.4999/- for 20 minutes. PHL has also specialized aerial geophysical survey and most prepared a roadmap to connect Rohini heliport recently, for providing power industry support to all the major destinations such as Shimla, services. Haridwar, Mathura, Agra, Meerut and industrial hubs such as Manesar, At present, GVHL is operating at 16 locations in Bahadurgarh, among others. the country with Dimapur, being the latest addition in January 2017. The company Pawan Hans has been assigned the task to has close to 100 pilots, mostly from army develop a Helicopter Training Academy cum background with 20 years’ experience. The Heliport at the existing Gliding Center at company has an unmatched safety record with Hadapsar, Pune which is owned by DGCA. over 230,000 hours of accident free flying and Project has been approved by Ministry of Civil safe carriage of over 3,250,000 passengers Aviation and the DGCA has released an amount (low numbers by commercial passenger jet of 10 crores for the purpose. Pawan Hans standards, but exceptional numbers for a signed MoU with DGCA on 17th May, 2010 for helicopter operation). utilizing land and other infrastructural facilities for this purpose at the Gliding Centre, Pune on The company’s offshore division is dedicated behalf of DGCA. to providing air logistics services to the Oil & Gas industry majors, under long term contracts In March 2017, the company has laid out the with an outstanding market share in the Business Plan 2017-2027 to become a 100- offshore helicopter market in India. The helicopter company over the next decade. To company has operations in both East & West facilitate this vision, it has established PHL coasts serving blue chip companies such as Aviation Academy as Skill Development Center Reliance, ONGC, British Gas, State for Pilots, AMEs and Safety Management and Petroleum Corporation, Cairn India and many General Services. It has signed a MoU with others. Mumbai University to offer a dual qualification

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GVHL operates several helicopters dedicated geophysical surveys, power sector and aerial to Religious Tourism, servicing a range of mapping works etc. With a fleet size of 6 significant sites, primarily in Northern India. It rotorcraft, the company has its own approved provides helicopter services all year round to maintenance organization under CAR-145 for Shri Mata Vaishno Devi Yatra, and has seasonal maintenance of helicopters and also carries operations in five other pilgrim sites. The out third party maintenance work. onshore team also provides seismic survey, The company provides helicopter services at powerline inspection and maintenance, and a Shri Mata Vaishno Devi, Shri Amarnathji and range of other services to a wide variety of Shri Kedarnathji shrines. It has pioneered the clientele. Through its “Birdie” division, GVHL use of helicopters in heli-skiing in Himachal offers charter and airport shuttle services Pradesh, partnering with the German ski- throughout the country. provider company ‘Flory Kern’. It takes the Himalayan Heli skiers by helicopters to mountaintops like Hamta, Brighu, Deo Tibba and Rohtang, which Himalayan Heli Services was established in are otherwise almost impossible to reach, and 2002 to fill the void in supply for demand of offer a variety of exposures amidst beautiful Heli skiing, serving pilgrims at Holy Shrine, landscapes. under slung operations, aerial work,

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4. REGIONAL CONNECTIVITY SCHEME

As mentioned above, the Indian aviation sector encourage helicopter use in Priority RCS areas. is one of the fastest growing market for the In second RCS, helicopter services under the past decade. However, use of helicopters in regional connectivity scheme will be permitted commercial aviation is very limited. To only for Jammu and Kashmir, Himachal promote usage of helicopters and improving Pradesh, Uttarakhand, the north-eastern regional connectivity within India, GoI in its states, Andaman and Nicobar as well as first RCS policy on October 2016 included Lakshwadeep islands. Moreover, the VGF caps helicopters. The scheme has capped helicopter for helicopters has been increased and 10% of fare for seats on RCS routes to provide the estimated annual inflows in the RCF will be affordable options for citizens to fly. The earmarked for helicopter operations. For government will provide Viability Gap Funding helicopters with a passenger seating capacity (VGF) to the helicopters to fly the route for 3 of less than or equal to 13 seats, helicopter years to encourage them to operate these operator shall be required to provide hundred routes viably. However, the first RCS policy was percent (100%) of RCS Flight Capacity as RCS not able to attract any bid from the helicopter Seats. For helicopters with more than 13 seats, operators. 13 passenger seats will be considered as RCS Seats and VGF will be provided accordingly. After the first round, government launched a The methodology for computing flight consultative process with stakeholders to duration for helicopters has also been revised ensure commercial viability of RCS for based on the recommendation of Expert helicopters. Post detailed consultative process, Committee. several changes have been proposed to Table 2: Comparison of Fare Cap and VGF Cap in two rounds of bidding

Flight Fare Cap Fare Cap VGF Cap Revised VGF Duration (Round 1) (Round 2) (Round 1) Cap (in mins) (Round 2) 1-10 2,500 2,480 0 0 11-15 2,500 2,480 700 1470 16-20 2,500 2,480 1,800 3050 21-25 2,500 2,480 2,900 4630 26-30 2,500 2,480 3,900 6200 31-35 2,900 2,880 4,600 7380 36-40 3,350 3,320 5,200 8520 41-45 3,750 3,720 5,900 9700 46-50 4,150 4,120 5,900 9700 51-55 4,600 4,570 5,900 9700 >56 5,000 4,970 5,900 9700 Source: MoCA – RCS policy

4.1 Illustrative Example of VGF

As stated earlier, the government has allocated competitive bidding. The financial support will 10% of RCS fund for helicopters. Government be provided for a period of three years from will provide VGF for RCS route based on the the date of commencement of operations. The

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following illustration highlights VGF per seat occupancy levels. Helicopters under based on three different types of helicopters. consideration are as follows: We have estimated VGF required at different Table 3: Comparison of Helicopter types used in VGF assessment

Helicopter Pax Purchase price seats ($ million) Bell 407 5 2.54 Eurocopter AS 12 8.9 Sikorsky S-92 19 17.7 Source: www.aircraftcompare.com

We have assumed an RCS helicopter flight of objective is to understand the VGF 50 minutes with ~200 Kms of stage length, requirement for a helicopter operator planning yearly occupancy increase of 10% Y-o-Y, and to start operations under RCS scheme, for expected average EBITDA margin of 15%. different occupancy levels/ load factors. As per Additionally, we have assumed a weekly our calculations, the required VGF per RCS seat frequency of 7 departures and 7 arrivals per to support operations on the route ranges week. from ₹8,600 at 10% load factor for Sikorksy S- 92 to INR 1,490 for Eurocopter at 100% load Moreover, while the RCS fare is capped at factor. ₹4,120/- for the route, the Non-RCS seats pricing has been modelled to increase with the This means that the VGF caps defined in RCS overall flight occupancy (maximum fare of 2.0 are sustainable for a wide range of ₹5,234/- charged for 90%+ utilization). The helicopter operations.

Figure 7: VGF required for various helicopter types.

11,000.0

9,000.0 VGF cap: 9,700 7,000.0

5,000.0

3,000.0 VGF VGF per RCS seat

1,000.0

-1,000.0 0% 20% 40% 60% 80% 100% Load factor

S-92 Bell 407 Eurocopter VGF CAP

The revised VGF cap for helicopters has enabled commercially viable operations for helicopters of all size.

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5. HELICOPTERS IN INDIA: KEY USE-CASES

This section explores the rising usage of and Nagaland. Pawan Hans already helicopters in India for different purposes. It connects more than 39 destinations in the then compares the trends in India with global northeast providing over 148 weekly flights. trends and best practices to contrast the Helicopters are an integral part of the newly differences and understand avenues for launched Regional Connectivity Scheme (RCS) improvement. by the Government of India. This scheme aims With less than 300 civilian helicopters, India to promote the usage of helicopters to provide has a surprisingly small fleet when compared air services in the difficult terrains of North to other developing nations like China. With East, Himachal and Uttarakhand region by nearly 1300 civil helicopters, China will likely providing subsidized air service. It also plans to overtake Japan this year as the largest civil develop 4 heli-hubs in India and has earmarked helicopter market in the Asia-Pacific region. a percentage of the Regional Connectivity Fund Currently, most of the civil helicopters in India towards development of helicopter are used by the energy sector, both onshore operations. and offshore, and in passenger services to Many other countries across the world provide regional connectivity, with the subsidize air travel to remote locations using remaining being employed for helicopters. Some of the examples have been communications, corporate use, heli/religious discussed below: tourism, elections and surveys. The use of civil helicopters in medical services and maintaining Norway law and order is at a very nascent stage in India. Værøy Heliport is a heliport located at Tobbisodden on the island and municipality of We have looked at various use cases to further Værøy, Norway. The airport, operated by the evaluate the prospects for the Indian Civil state-owned Avinor, consists of a single Helicopter Market based on the global trends. helipad and handled 9,420 passengers in 2014 based on a public service obligation contract 5.1 Remote Area Connectivity which subsidized the services are provided by The use of helicopters to connect remote and Lufttransport. regional communities is common across the Remote Air Services Subsidy - Australia world due to nature of terrain or geographical or climatic restrictions on the ground The Remote Air Services Subsidy (RASS) connectivity. Smaller size, lower operating Scheme subsidizes a regular weekly air costs and limited infrastructure requirements transport service for the carriage of passengers make helicopters ideal for services to areas and goods to communities in remote and with low catchment population and isolated areas of Australia. A RASS community inaccessible ground transport. ranges from a small family-run cattle station through to an indigenous hinterland In India, the requirement for helicopters in community with a population ranging from 6- regional connectivity is rising. It is driven by the 200 people. To be eligible for RASS, a need for aerial connectivity in the North and community must have a demonstrated need the Northeast, and the Andaman and Nicobar for a weekly service and be sufficiently remote and Lakshadweep archipelago. Many in terms of surface travel to a population commercial operators have begun providing centre or neighbouring community receiving a service to these locations connecting states weekly transport service. such as , , ,

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In FY2014-15, the RASS Scheme provided some 5.3 Emergency Medical Services 363 communities in remote and isolated areas The Helicopter Emergency Medical Services of Australia with improved access through the (HEMS) concept is in its nascent stage in the subsidy of a regular air transport service. country. After a lot of consideration, DGCA 5.2 Energy Sector and Offshore Operations recently formalized regulations and guidance for the approval/acceptance of air ambulance The helicopter is the workhorse for the off- and helicopter emergency medical services. shore oil and gas exploration and production India first introduced HEMS in the remote and industry. The ever-increasing demand for mountainous regions of the Himalaya with the energy, ever escalating prices of crude oil and support from the state government. Pawan the discovered existence of oil and gas in off- Hans operates under the permit of the shore areas ensure that there is a hectic government to assist in casualty evacuation increase in off-shore oil exploration in recent and disaster management. Additionally, few times. More and more hitherto untouched off- private players have started showing interest shore areas are being explored and developed in the sector given the immense growth through large public and private sector prospects. investments. Helicopters form an essential and critical part of off-shore operations as they On the global scale, the first civilian uses of connect these facilities to the mainland. aircraft as ambulances were probably incidental. Early in aviation history, many Currently, about 40 helicopters are employed remote communities such as Scandinavia in the off-shore sector both on the western and began to rely on civilian "bush" pilots, who fly eastern coasts of India. Flying carried out by small aircraft and transport supplies, mail, and them represents more than three-fourth of the visiting doctors or nurses. Today most total civil helicopter flying in India. As oil developed and developing communities in the exploration moves further offshore, the world have some form of Emergency Medical demand for better and modern helicopters is Services present. There are multiple models for bound to increase. the operations of such services including: Globally, more than 40% of the 34000 government-funded, fee-for-service, donated helicopters are used in offshoring activity. by a business enterprise, or funded by public Since the oil price downturn, drilling and donations. production activities have been falling across Government Operated all regions, resulting in a 7% decrease in total oil & gas expenditure over the forecast period, Governments provide air ambulance services, compared to the preceding five-year period. either directly or via a negotiated contract with Despite this, the current global fixed and a commercial service provider, such as an floating platform population, coupled with aircraft charter company. Such services may existing drilling and production activities from focus on critical care patient transport, support projects sanctioned prior to the oil price ground-based EMS on scenes, or may perform downturn will continue to drive demand for a combination of these roles. In almost all helicopter support services. Consequently, cases, the government provides guidelines to over the 2017-21 period, a 3% CAGR growth in hospitals and EMS systems to control global oil & gas helicopter expenditure is operating costs—and may specify operating expected. procedures in some level of detail to limit potential liability. Ontario's ORNGE program and the Polish Lotnicze Pogotowie Ratunkowe (LPR) are examples of this type of operating system.

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Fee-for-Service To encourage the concept of HEMS, there is a requirement from the government to provide The cost of providing air ambulance services is regulatory and operational clarity as well as considerable and many, including government- flexibility for the private players to operate. run operations, charge for service. Additionally, the possibility of providing Organizations such as service aircraft charter subsidies, in order to reduce the cost of companies, hospitals, and some private-for- operations, can also be explored. profit EMS systems generally charge for service. Within the European Union, almost all 5.4 Heli-Tourism air ambulance service is on a fee-for-service The diverse ecology and culture in India from basis, except for systems that operate by the Himalayan mountains to the islands make private subscription. Rega of Switzerland is an India one of the biggest potential Heli-tourism example of such a service. markets in the world. Over the past few years, Public Donations India has seen an increase in private operators entering tourism space. Today there are more In some cases, air ambulance services may be than 70 commercial operators in the country provided by means of voluntary charitable with majority being regional players offering fundraising, as opposed to government various tourism packages. Helicopter funding, or they may receive limited operators such as Deccan Aviation, Global government subsidy to supplement local Vectra and PHHL are already providing heli- donations. Some countries, such as the U.K., tourism packages in the Northern, Southern use a mix of such systems. In Scotland, the and Eastern parts of the country. Similarly, parliament has voted to fund air ambulance India is a destination of great interest to many service directly, through the Scottish religious tourists. Journeys to Badrinath, Ambulance Service. In England and Wales, Kedarnath, Vaishno Devi and Amarnath which however, the service is funded on a charitable were difficult and time consuming earlier, have basis via many local charities for each region now been made easier through heli-pilgrimage covered, although the service to London services. receives most of its funding through the National Health Service. Tourism is on track to becoming a huge business in India, but heli-tourism is not Health Canada growing proportionally. The major reason Health Canada is found to have a major role in behind this seems to be the shortage of heli- the provision of air service to small remote hubs which results in most helicopter fleet communities. Equal access to health services is having to locate at metro airports. This a primary objective of the Canada Health Act. increases the cost of operation. Other As a result, Health Canada implemented problems include the lack of MRO centres to several programs at the provincial level to meet the growing need for repair and overhaul ensure communities’ access to medical care and shortage of skilled pilots and technical services. Where alternative transportation staff. modes are scarce or not available, these Recently, there has been a rising focus by state programs are fundamentally forms of support governments towards heli-tourism with many to air travel. Medical transportation needs are of them signing MoUs with private operators currently decentralized and managed at to provide joy rides, packages, heli-taxi regional level by organizations such as First services, aerial reconnaissance and disaster Nations and Inuit Communities. management services. Further focus is required from the government in terms of

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policy and infrastructure development for the streamlined approach needs to be industry to grow rapidly implemented in this regard.

The global helicopter tours market is largely Police being a state subject, state governments competitive market and consists of numerous would play a major role in setting up of ALEs. It global and local vendors. The main challenges should be first implemented in the densely in the market growth are intense competition, populated metro cities with high crimes rates, fast technology advancements, changing such as Mumbai, Delhi, , etc. and government policies, and environmental then gradually expanded to other areas. regulations. The market is expected to reach The benefits of using helicopters in law $550 Mn. by 2021. enforcement can be inferred from its use by 5.5 Law Enforcement most developed and developing countries. A study by College of Criminal Justice University Present day law enforcement is varied and of South Carolina on the cost benefit analysis intricate and needs more than routine policing of incorporating helicopters in policing to deter unlawful activity. ‘Aerial Law suggests communities dense in population Enforcement’ (ALE) is a force multiplier and show effective use of the helicopter for patrol plays a dominant role in augmenting the purposes; whereas, areas that are spread out strength of the law agencies. The helicopter may need a unit only in case of emergency due to its inherent characteristics and ability to response. perform a wide range of missions is ideally suited for this role. New York and Los Angeles 5.6 Shuttle Services were the first police departments to create With a number of international airports aviation units. It was used to serve rescue tasks located far away from the centre in cities like with minimal involvement in patrolling. Bangalore, Hyderabad, Chennai and Shimla, From modest beginnings, aviation in general Heli-shuttle requirements are bound to see a and specifically helicopters have grown to play rapid increase. a vital role in American police departments. One of the recent examples is of the Bengaluru Departments serving populations of one International Airport which will soon offer a million or more have a 75% or more likelihood helicopter shuttle service – HeliTaxi - using that they will have at least one helicopter at helicopters between the city and airport at the their disposal. Seventy-one percent of those cost of a luxury cab fare. The airport is about serving populations of 500,000 or more have 40 km from the city centre and 60-70 km away access to a helicopter. Japan too has a large from the Electronic City in south. A 5-7 seat number of civil helicopters as part of law- luxury cab fare is ₹3,000 to ₹4,000 between enforcement, coastal security and Para public the airport and the city's far end. The airport usage. It recently ordered another 6 has tied up with Thumby Aviation Ltd. to ferry helicopters to increase its fleet. passengers between the airport and the city in In the past few years, India has started use of the choppers on demand. Union Minister of civil registered helicopters in anti-naxal State for Civil Aviation Jayant Sinha, who operations in the red corridor. Currently, the announced the launch of the seamless service helicopters that are being employed belong to said, "While the Udan scheme focuses on companies holding non-scheduled operations regional connectivity, the HeliTaxi service will permit like the Pawan Hans and Global Vectra. ensure quick transfers to and from airport. However, these are ad-hoc measures and a Efficient last-mile connectivity is key to ensuring India as a true global aviation hub."

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6. WAY FORWARD

With the world market surveys showing a GDP from the current 2 percent level, there is robust growth in India in the coming five years a lot of potential in development of helicopter and tremendous commercial prospects emergency medical services. existing, the country offers phenomenal Helicopters can play a vital role in providing potential for usage of civil helicopters for connectivity to the otherwise inaccessible public good. With the increased interest to areas due to the nature of terrain. The improve regional connectivity, tourism, and northern states of Uttarakhand, Himachal emergency medical evacuation, as well as the Pradesh, India-controlled Kashmir, and the additional focus of MoCA and DGCA on the entire northeast region hold scope for a huge helicopter industry and newly laid out policies, demand. With the government’s emphasis on there is a substantial opportunity for the increasing connectivity in the ‘priority areas’ — helicopter operators to deploy more fleet and Jammu and Kashmir, Uttarakhand, Himachal generate revenues. Pradesh, the North-East, and Andaman, Until recently, Indian helicopter market had a Nicobar and Lakshadweep Islands – and the huge dependence on the oil and gas sector. initiative to increase the viability gap funding However, with drop in demand from this (VGF) for helicopter operators under the sector due to low oil prices, it is of huge Regional Connectivity Scheme (RCS) in the importance that the helicopter operators look second round of the bidding, there are brighter at other avenues for expanding their prospects for the helicopter operators. The operations. government can explore the setting up of hub and spoke model to improve connectivity in Use of helicopters for emergency relief the north-eastern states and other hilly areas. services and to provide faster medical help to In this model, high-capacity planes can be accident victims is an untapped area and holds deployed for transfer between large cities large potential for service providers. The (such as state capitals), low-capacity planes increasing urbanization of major Indian cities can service the smaller cities while the marked by rapid and unplanned growth, along helicopter services can be used for the last mile with high traffic density, makes the need for connectivity. Such initiative can go a long way Helicopter Emergency Medical Services in improving regional connectivity of the (HEMS) even more urgent. To encourage Northeast region, leading to a surge in the participation of private operators in HEMS, the economic activities and overall development government needs to lay a level-playing field of the region. by giving clear rules and regulations for operations, and by defining an appropriate The country has great potential for helicopter revenue structure. Availability of adequate tourism but requires just the right impetus infrastructure is also of paramount from the state governments to show growth importance. Helipads need to be built at the and performance oriented results. Various hospitals, and National Highway Authority of cities like Delhi, Mumbai and Hyderabad are India can look at creating helipads along already providing aerial city tours via national highways to ensure immediate helicopter and getting a good response. The evacuation of accident casualties by helicopter operators have seen a growing helicopters. With India’s first air ambulance demand for helicopter services at popular service set to be launched soon and the pilgrim sites and for heli-skiing at other hilly National Health Policy 2016 increasing the areas. With the government public health expenditure by 2.5 percent of the planning to launch helicopter tours for ‘Heli-

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Ganga-Aarti’ at Varanasi and ‘Triveni Darshan’ However, to turn them into reality, it is at Allahabad, and the Maharashtra imperative for the government to pitch in and government exploring the operational build infrastructure as well as capabilities for feasibility of heli-tours to tourist attractions the growth of the civil helicopter industry. such as Matheran, Elephanta and Ajanta caves, Under NCAP 2016, the government has a huge traction is now being seen in this sector. approved construction of four heliports, with the first one at Delhi already operational. The government needs to take-up There is a wider need to build more such development of heliports for public use in the heliports across the country which would in country. It should identify suitable sites for turn provide necessary impetus to the creation of heliports in major population helicopter operations in the field of EMS, centers where there is scope for commercial regional connectivity and tourism. With usage of helicopters. Bangalore International increased number of helicopter services, it will Airport has recently announced be extremely important that a separate commencement of helicopter shuttle services corridor is created in Air Traffic Management ‘Helitaxi’ to the various parts of the city. Cities to oversee the helicopter traffic. Additionally, like Delhi, Mumbai and Hyderabad with dense the growth of helicopter fleet will lead to vehicular traffic should also look at launching greater demand for skilled pilots and technical similar shuttle services. staff. This can be addressed by setting up of Law enforcement has seen great benefits of new training academies and providing training using civil helicopters across the world. US has of top-notch quality. MRO Centers and skilled seen reduction in crimes with deployment of support staff will also be needed to improve helicopters. The metropolitan areas like Delhi, serviceability of the helicopters and reduce Mumbai, Bangalore should make a beginning their downtime. and pioneer the use of helicopters for With NCAP 2016, the government is moving in surveillance, evacuation, emergency and other the right direction, but it needs to provide law and order requirements. India would additional impetus to boost the helicopter require around close to 500 helicopters to market and improve market penetration so manage efficient law enforcement and relief that usage of helicopters can be expanded operations, according to R.K. Tyagi, beyond sectors other than oil & gas and chairperson of Hindustan Aeronautics Ltd. corporates. This will not only help improve the (HAL). economy but also support the other Certainly, there is a plethora of opportunities government initiatives such as ‘Make in India’ at disposal of helicopter operators in India. and ‘Skill India’.

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