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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 COPYRIGHT No part of this publication may be reproduced in any form by photo, photo print, microfilm or any other means without the written permission of AUCTUS ADVISORS Pvt. Ltd. This report is the publication of AUCTUS ADVISORS Private Limited (“AUCTUS ADVISORS”) and so AUCTUS ADVISORS has editorial control over the content, including opinions, advice, statements, services, offers etc. that is represented in this report. However, AUCTUS ADVISORS will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third-party contents and third-party resources. AUCTUS ADVISORS takes no responsibility for third part content, advertisements or third-party applications that are printed on or through this report, nor does it take any responsibility for the goods or services provided by its advertisers or for any error, omission, deletion, defect, theft or destruction or unauthorized access to, or alteration of, any user communication. Further, AUCTUS ADVISORS does not assume any responsibility or liability for any loss or damage, including personal injury or death, resulting from use of this report or from any content for communications or materials available on this report. The contents are provided for your reference only. The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by AUCTUS ADVISORS, it does not operate, control or endorse any information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any DISCLAIMER manner to AUCTUS ADVISORS. The reader/ buyer hereby disclaims and waives any right and/ or claim, they may have against AUCTUS ADVISORS with respect to third-party products and services. All materials provided in the report is provided on “As is” basis and AUCTUS ADVISORS makes no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, contents, graphics published in the report, AUCTUS ADVISORS makes no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; not that the implementation of such contents will not infringe any third-party patents, copyrights trademarks or other rights. In no event shall AUCTUS ADVISORS or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/ or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/ or use of content and/ or any service available in this report, even if AUCTUS ADVISORS is advised of the possibility of this loss. AUCTUS ADVISORS Pvt. Ltd. PHD Chamber of Commerce & Industry Manish Chheda Yogesh Srivastav Managing Director Director [email protected] +91 9971 998 934 [email protected] CONTACTS Abhilash Singh Director +91 9999 024 157 [email protected] 2 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 India: 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 15 1. INTRODUCTION The global helicopter market is primarily Corporation of India in 1986 (later renamed to divided into civil and defence helicopter Pawan Hans 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
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