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interview: ‘profit hunter’ unleashed p7

August-september 2017

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Engine Dominance in Commercial Aviation p 21

AIRBUZ

A n E x c l u s i v e M a g a z i n e o n C i v i l Av i at i o n f r o m I n D I A

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show report: paris air show 2017 p 28

drones and civil aviation An SP Guide Publication

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table of contents

drones / regulations P10 drones and civil aviation

The variety and number of UAVs in the non-military segment, the roles these are being employed in and their capability as well as performance levels, are multiplying rapidly.

exclusive interview / embraer commercial P7 ‘Profit Hunter’ Unleashed

Identifying Asia-Pacific as one of the most promising markets for the E-Jets, in a one-on-one with SP’s AirBuz, Cesar Pereira outlines his vision and plans for the region.

P&W Customer Training Center in Hyderabad

interview / pratt & whitney P18 Pratt & Whitney Transforming Aviation

Palash Roy Chowdhury, Managing Director, Pratt & Whitney India, in conversation with Neetu Dhulia of SP’s AirBuz.

departments P2 A word from Editor P3 NEWS BRIEFS P32 FInally

P12 drones / security airport security – plug the gaps P14 regional aviation / role jets can decongest major hubs

One-on-one interview / honeywell P26 “The importance that we give to the India market is very, very high!”

Neelu Khatri, President Aerospace, Honeywell India, talks to Rohit Goel of SP’s AirBuz about Honeywell’s connected solutions for the Indian market.

P21 e ngines / p&w Engine Dominance in Commercial Aviation P24 technology / connectivity staying connected P28 show report / paris air show 2017 Show Bills $150 Billion Deals

Awards 2017

Special

Contribution to Business Aviation SP’S AIRBUZ • ISSUE 4 • 2017 • 1

A word from

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Publisher And Editor-in-Chief

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ne of the problems that afflicts the Indian airline industry and which is likely get worse with the passage of time is the congestion at the six major airports that serve as hubs. In this issue of SP’s AirBuz, R. Chandrakanth analyses the problem and explains how regional jet airliners can be used mitigate this problem. The other problem pertains to the growing menace of unregulated operations by Drones and its implications for air safety. This issue carries a piece by the undersigned on the subject of proper integration of Drones with manned air traffic in civil airspace. In his article in this issue of SP’s AirBuz on Airport Security, Lt General P.C. Katoch (Retd) delves on the inadequate security arrangements at civil airports in India and how exploitation of this weakness by anti-national elements could have serious implications for national security. A major event on the global aviation scene in the recent past was the 52nd Air Show at Paris held from June 19 to 25 at the Le Bourget airport. The two leading aerospace majors in the global civil aviation industry displayed their latest products and notched up large orders. Boeing launched the 737 MAX 10, the newest member of the 737 MAX family, with more than 361 orders and Airbus announced $39.7 billion worth of new business including firm orders for 144 airliners. Embraer, the aerospace major from Brazil displayed the E195-E2, the ‘Profit Hunter’ which is the newest member of the company’s family of regional jets. A detailed report on the civil aviation component of the Paris Air Show by R. Chandrakanth figures in this issue of SP’s AirBuz. Given the recent policy changes, Pratt & Whitney sees tremendous opportunities the Regional Connectivity Scheme will generate for the civil aviation industry. In an interview conducted by Neetu Dhulia of SP’s AirBuz, Palash Roy Chowdhury, Managing Director, Pratt & Whitney India, made it clear that the company sees India as an important strategic market and supports the ‘Make in India’ campaign of the Modi-led government that translates its vision of making India a global manufacturing hub. A report on the interaction is a part of this issue of SP’s AirBuz. Embraer too is highly optimistic about the market prospects in the Asia-Pacific region. The company estimates that the AsiaPacific region, including China, will see receive 1,710 new airliners by 2036 and in the next two decades, the total in-service fleet will reach 1,790 aircraft. In a one-on-one with SP’s AirBuz, Cesar Pereira, the newly appointed Vice President, Commercial Aviation AsiaPacific,tof Embraer, outlines his vision and plans for the region. Honeywell International broke new ground in India when for the first time, it showcased a Boeing 757 remodelled as a ‘Connected Aircraft’. The high speed connectivity that this technology offers, adds a new dimension in the efficiency and productivity of platforms employed in the civil aviation industry across the board and has the potential to be a game changer. The company sees a huge market for this innovative technology not only in India, but in the global market as well. Neelu Khatri, President Aerospace, Honeywell India, elaborates on this concept in a discussion with Rohit Goel of SP’s AirBuz. All this and more in this issue of SP’s AirBuz. Welcome aboard and wish you happy landings!

Applied for 2 • SP’S AIRBUZ • Issue 4 • 2017

www.spsairbuz.com

B.K. Pandey Editor

quently, what elevated the business jet from a luxury toy to what is increasingly seen as a vital corporate tool? In the US, hundreds of Fortune 500 companies now flaunt their own aircraft, with companies arguing that this vital conveyance saves time and boosts productivity. A recent CNN report quoted

NewsBriefs

( AIRLINE NEWS Interline Agreement between Qatar Airways and Vistara

In August this year, flag carrier Qatar Airways entered into a new interline partnership with the Tata-Singapore Airlines Vistara. The agreement allows passengers of each airline to travel seamlessly under a single ticket on the other’s network via Indian gateways to destinations to which both airlines operate. The baggage allowances of the passengers will be as per the issuing airline’s rules. Qatar Airways operates services from Doha to New Delhi, Kochi, Ahmedabad, Amritsar, Bengaluru, Mumbai, Khozikode, Kolkata, Goa, Hyderabad, Chennai, Nagpur and Thiruvanabthapuram. Vistara does not currently operate to Khozikode, Kolkata, Goa, Hyderabad, Chennai, Nagpur and Thiruvananthapuram. Vistara has interline or through check-in agreements with Air France, KLM, Japan Airlines, All Nippon Airways (ANA), British Airways, Finnair, Aeroflot, Ethiopian Airlines, Austrian Airlines, Kenya Airways, Emirates, and Ethiopian Airlines. It also has codeshare partnerships with its parent Singapore Airlines and Singapore’s regional subsidiary SilkAir.

Air India to Purchase Six Dreamliners

The government is planning on selling stake in Air India, but the airline is going ahead with its fleet expansion plans and is seeking financing worth $740 million for the purchase of six Boeing 787 Dreamliners. The airline has invited offers from banks and financial institutions to arrange bridge financing for the amount. Earlier in March this year, Air India had sought $470 million from banks and financial institutions to purchase four Dreamliners. Of the six now on order, three aircraft have already been delivered, while the rest would be delivered by October 2017. The government has now indicated that they would issue guarantee for all the six aircraft and Air India is looking at refinancing the bridge loan for the three

delivered planes and interim bridge financing for the rest for a period of 15 months. “In addition to the government guarantee, Air India will offer the aircraft as security. The facility should be a direct loan without the requirement for formation of a special purpose vehicle structure, which requires title transfer,” the tender document said. As part of fleet expansion plan, in 2006, Air India had placed orders with Boeing for 68 aircraft. The list included 27 Dreamliners, 15 Boeing 777-300ER, eight Boeing 777-200LR and 18 Boeing 737-800.

Delta, Air France-KLM, Virgin Atlantic Joint Venture

Delta will invest €375 million to acquire ten per cent equity in the Air France-KLM Group. In addition, Delta will be on the latter’s Board of Directors. Air France-KLM will invest 31 per cent in Virgin Atlantic in which Delta already has a 49 per cent stake. Since 2009, Delta has a joint venture with Air France-KLM. Alitalia was added in 2010. In 2012, Delta and Virgin Australia launched a joint venture. Virgin Atlantic was added in 2013 and Delta also took 49 per cent stake in the Richard Branson promoted British carrier. The Atlanta-based carrier has been steadily expanding its global footprint via a series of joint ventures, marketing agreements and investments. Expanding beyond Europe, in 2015, Delta took a 3.5 per cent stake in China Eastern Airline and entered into an enhanced marketing arrangement with the latter who is also a member of the SkyTeam alliance. A similar cooperation agreement and a 49 per cent stake in AeroMexico was done in 2017. The same year Delta also announced a joint venture with Korean Air Lines, another SkyTeam member. Delta also holds a 9.5 per cent equity stake in Brazilian carrier GOL.

Jet Airways-Etihad Strategic Partnership

Etihad Airways has said it is committed to a strategic partnership with Jet Airways that continues to be strong and healthy. The Gulf carrier’s assertion comes amid reports that Jet Airways is in exploratory talks to sell stake to Delta Air Lines. With 24 per cent stake, Etihad is a strategic partner of Jet Airways. An Etihad spokesperson said

both airlines continue to enjoy a strong and healthy relationship. “We remain committed to our strategic partnership which has grown to become the largest carriers of international traffic to and from India with one in five passengers flying with Etihad Airways and Jet Airways. “Together, we operate 257 services each week, each way between Abu Dhabi and 15 cities across India,” the spokesperson said. Stressing that speculation of anything to the contrary is completely misguided and misinformed. The spokesperson said the dynamic partnership with Jet Airways has resulted in increased benefits for travellers. The response was to queries on whether Etihad is looking to sell its stake in Jet Airways. A leading full-service carrier, Jet Airways flies to 65 destinations, including in the Middle East, Europe and North America. Jet Airways, with a fleet of 113 aircraft, has code share pacts with various international airlines, including Delta Air Lines, KLM Royal Dutch Airlines and Air France.

Jet Airways Asks Junior Pilots to Furnish ` One Crore Bonds

Jet Airways has asked junior pilots to furnish surety bonds worth up to ` one crore and serve the airline for at least five to seven years. The development comes at a time when many of its junior pilots have been asked to take ten days off every month, a move that would result in up to 30 per cent pay cut, as part of cost saving measures. Sources at the National Aviators Guild (NAG), the pilots’ union of Jet Airways, said the bond requirement has been communicated to the junior pilots. Jet Airways has more than 200 junior pilots including those undergoing training. The NAG would be taking up the matter with the management soon, sources added. On July 20, 2017, Jet Airways said that certain developments in the market, including that in the Gulf region, as well as its continued efforts to enhance internal efficiencies, have resulted in the review of network as also fleet and crew utilisation. Consequently, as a proactive measure, the company has made interim SP’S AIRBUZ • Issue 4 • 2017 • 3

NewsBriefs

Events Calendar The Elite - New York

8–9 September Essex County Airport, New Jersey, USA www.theeliteevents.com/new-york

Aviation Expo China 2017

19–22 September China National Convention Centre, Beijing, China www.beijingaviation.com

NBAA-BACE

10–12 October Las Vegas Convention Centre, Henderson Executive Airport, Las Vegas, NV, USA www.nbaa.org/events/bace/2017

MRO Europe

3–5 October ExCeL London, London, UK http://mroeurope.aviationweek.com/eu17

Dubai (ICD) but are managed and operated independently. The airlines will also further develop their hub at Dubai international airport. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group and Chairman of Flydubai said “This is an exciting and significant development for Emirates, Flydubai and Dubai aviation. Both airlines have grown independently and successfully over the years and this new partnership will unlock the immense value that the complementary models of both companies can bring to consumers, to each other and to Dubai.”

Air India - Profit before Divestment

( AIRLINE FINANCE

( INDUSTRY NEWS

Financial Performance SpiceJet FY 2017-18

Pratt and Whitney Engines for IndiGo and GoAir

SpiceJet’s results for the first quarter of fiscal year 2017-18 were a mixed bag with some areas of concern. SpiceJet’s revenues grew by 23 per cent against a capacity increase of 18 per cent compared to the same quarter last fiscal year. This was driven by a combination of rising fares and load factors. SpiceJet continued to be very aggressive in sales during the quarter reflected in the high load factors recorded. SpiceJet is no different and increased the average fare per passenger by nine per cent to `3,943. India’s largest domestic carrier, IndiGo, averaged `4,626 per passenger. Load factors were a healthy 93.4 per cent. Total costs as compared to the same period last year grew by 23 per cent, outstripping capacity growth of 18 per cent. This naturally reflects on profitability. SpiceJet was consistently ranked second in on-time performance, a key influencer for the Indian passenger. Interestingly no mention was made of this in the results. Aircraft utilisation was fairly low at approximately nine hours per aircraft averaged between the Bombardier Q400 and Boeing 737 fleets. We estimate the utilisation of the Boeing 737 will be higher at around 10 to 11 hours. Expect the airline to increase utilisation to drive revenues.

Pratt and Whitney has assured the Indian Directorate General of Civil Aviation (DGCA) that the company will provide new engines as replacements by the end of September this year, for ten grounded A-320neo aircraft of IndiGo and GoAir. This was conveyed by Pratt and Whitney when they were called in by the DGCA recently. The DGCA asked the Pratt and Whitney officials to treat India as a priority market from where they are getting good business. The DGCA could understand if one or two aircraft are grounded; but here the number is around ten and it is a serious issue. IndiGo, at present, has eight and GoAir two A-320neos grounded. The DGCA had in April 2017, ordered a detailed inspection of the Airbus A-320neo planes of IndiGo and GoAir that are equipped with Pratt & Whitney engines. The direction came after the DGCA took serious note of incidents where some IndiGo and GoAir aircraft had to make emergency landings due to problems with the engine. In July this year, while talking about Quarter-1 results, Aditya Ghosh President IndiGo had acknowledged the problem with the engines. Rescheduling of services due to the grounding of planes appeared to have had an effect on IndiGo’s

As per Rajiv Bansal who took over as Chairman and Managing Director Air India in August this year, higher revenue, healthy profit, on-time flights and better connect with the fliers are among the top goals for the state-owned airline before it goes for privatisation. “I have a very basic target which is to run the airline profitably,’’ Rajiv Bansal told the media in an interview. The airline can be run efficiently only with the help of my colleagues, he said. Air India made a loss of Rs 3,643 crore on a revenue of Rs 20,613 crore in the financial year 2016-17.

Dubai Airshow

12–16 November DWC, Dubai Airshow Site, Dubai www.dubaiairshow.aero

alignments to its crew work patterns, which will be reviewed in future, in line with network growth.

Partnership Agreement between Emirates and Flydubai

Emirates and Flydubai have entered into a partnership which will see the two Dubaibased airlines partner in code sharing and collaboration in their network with coordinated scheduling. The agreement will allow Emirates to make use of Flydubai’s regional network and allow the airline to make use of the expansive global network of Emirates to allow more destinations to passengers of both airlines. The goal of this partnership is to optimise the networks of both airlines to open more city pairings and to feed passengers from the networks of the airlines to each-other. Both Emirates and Flydubai are owned by Investment Corporation of 4 • SP’S AIRBUZ • Issue 4 • 2017

www.spsairbuz.com

NewsBriefs

appointment AIR BP

On July 17, 2017, leading international aviation fuel products and services supplier, Air BP, announced the appointment of Matt Elliott as Chief Commercial Officer.

AIRBUS

Airbus has appointed Luo Gang as CEO of Airbus’ New Innovation Centre to be set up in China at a location to be announced at a later date.

BOEING

The Board of Directors, Boeing, has elected Caroline B Kennedy as a new member. On June 28, 2017, Boeing announced an expansion of the enterprise responsibilities of Greg Smith, currently the company’s Chief Financial Officer and Executive market share with figures showing a fall in July 2017, the lowest for any month this year for the airline.

Vice President of Corporate Development & Strategy.

CLUB ONE AIR

Rajan Mehra has been promoted as the Chief Executive Officer (CEO) of Club One Air with effect from August 17, 2017.

Boeing Forecast for New Airplanes in India

EMBRAER

On August 14, 2017, Embraer announced the appointment of Stephen Friedrich as Chief Commercial Officer for the Company’s Executive Aviation Business Unit, effective immediately.

SR TECHNICS

SR Technics, a world leading MRO service provider, announced the appointments of Jianfeng (Jeff) Hu as Deputy CEO and Yujie (Jessy) Zheng as Deputy CFO.

Enhanced A-380 Super Jumbo

Larger Share of Foreign Traffic for Domestic Carriers

Unlike many countries, international air traffic to and from India continues to be dominated by foreign airlines, primarily from West Asia. But Indian carriers have been increasing their share of the pie steadily. From about 30 per cent in FY14, the share of domestic airlines in India’s international traffic rose to 34 per cent in FY16 and further to 35 per cent in FY17, says a report by rating agency ICRA. This is a result of Indian carriers outperforming their international counterparts in traffic growth. For instance, in FY17, while overall traffic growth to and from India was 8.4 per cent, the domestic carriers grew their international traffic at a faster 11.8 per cent. While this is much slower than the about 22 per cent growth in domestic air traffic in FY17, the foreign traffic opportunity is also getting much attention from Indian carriers. More flights by established players such as Air India and Jet Airways and relatively new entrants IndiGo Airlines and SpiceJet, have aided the trend of growing market share on foreign routes. Jet Airways and Air India have, over the years, built up significant share on the international routes (13.515.5 per cent), while IndiGo and SpiceJet are gradually building up their presence (about 3 per cent share each).

six-year check downtime and systems improvements which the company says will reduce maintenance costs and increase aircraft availability.

Plans for an enhanced A-380 Super Jumbo, the A-380plus, with new large winglets to provide up to four per cent fuel burn savings and a 13 per cent cost reduction per seat versus the current A-380 have been unveiled by Airbus. A development study released by the company also envisages an optimised A-380 maintenance programme and enhanced cabin features. The new winglets are about 4.7m high, with an up let of 3.5m and a down let of 1.2m, and are designed to improve aerodynamics and reduce drag. The cabin layout is based on the “cabin enablers” and allows up to 80 more seats. There are also redesigned stairs, a combined crew-rest compartment, sidewall stowage removal, and a new nine-abreast seat configuration in Premium Economy and 11-abreast in Economy. Airbus says the A-380plus will have an increased maximum takeoff weight of 578 tonnes to provide the flexibility to carry the extra passengers over today’s range of 8,200nm or to fly 300nm further. The aircraft also features longer maintenance check intervals, a reduced

Boeing forecasts a demand for 2,100 new airplanes in India over the next 20 years, valued at $290 billion. The company released the report as part of its annual Current Market Outlook briefings for India. “Commercial aerospace demand in India continues to grow at unprecedented rates,” said Dinesh Keskar, Senior Vice President, Asia Pacific and India Sales, Boeing Commercial Airplanes. “The increasing number of passengers combined with a strong exchange rate, low fuel prices and high load factors bode well for India’s aviation market, especially for the low-cost carriers.”Singleaisle airplanes, like the Boeing 737MAX family, will continue to account for the largest share of new deliveries, with airlines in India needing approximately 1,780 airplanes. “The Boeing 737MAX is the fastest-selling airplane in Boeing history because customers throughout the world, including India, want its combination of performance, flexibility and efficiency,” said Keskar. “Boeing also continues to offer the most complete family of wide-body airplanes, as evidenced by our more than 85 per cent in-service market share in India.” Boeing projects a worldwide demand for 41,030 new airplanes over the next 20 years, with Indian carriers needing more than 5.1 percent of the total global demand. Boeing’s Current Market Outlook is the longest running jet forecast and is regarded as the most comprehensive analysis of the aviation industry.

( REGIONAL AVIATION UDAN: Norms Relaxed for Second Round of Bidding

In the last week of August this year, the government unveiled revised norms under SP’S AIRBUZ • Issue 4 • 2017 • 5

NewsBriefs

the Regional Connectivity Scheme (RCS) to attract more airlines to operate services in J&K, North-Eastern states, Andaman and Nicobar Islands and Lakshadweep. The Ministry of Civil Aviation (MoCA) has also included Himachal Pradesh and Uttarakhand as priority areas. The aim is to increase the services to these states, whose aviation potential at present have not been fully utilised. The MoCA has relaxed the norms of RCS for these states and union territories. Civil Aviation Minister Ashok Gajapathi Raju said the scheme is being liberalised and the focus would be on priority areas. The new norms also allow routes with a stage length less than 150km for operations through fixed-wing aircraft. This, the MoCA believes, would enhance connectivity and ease the formation of networks under the scheme. To encourage helicopter services under UDAN scheme, the viability gap funding (VGF) has been increased and ten per cent of the estimated annual inflow in the Regional Connectivity Fund has been earmarked for operations through choppers. The second round of bidding RCS has been held and the Ministry expects to announce the names of winners on November 30 this year.

( INFRASTRUCTURE Plans for Expansion of New Delhi Airport

Inspired by a massive increase in passenger traffic at Terminal 1 (T1), the GMR Group-led Delhi International Airport Limited (DIAL) consortium, has unveiled an ambitious plan to expand Indira Gandhi International Airport, New Delhi in three phases in the period 2018 to 2026. Delhi airport handled 57.7 million passengers in the financial year 2016-17 against a maximum handling capacity of 70 million. The passenger traffic for FY2017 has already crossed the capacity of the existing terminal of 20 million. The departure terminal, T1-D and arrival terminal, T1-C will be merged in to one futuristic terminal and will be expanded to accommodate 40 million passengers. The original international terminal T2, mothballed after T3 was commissioned, has been renovated and can handle up to 14 million passengers. DIAL has asked the airlines to partially shift operations from T1 to T2 on an interim basis, from October 2017. T1 will be upgraded in parallel with reduced on-going opera6 • SP’S AIRBUZ • Issue 4 • 2017

tions over three years. Once airlines move back to the new T1, the existing T2 will be converted into T4 and integrated with T3. Operations will be streamlined for the passenger and the airline. One of the more significant upgrades will be away from the public eye. At present, flights to/from T1 need to use a circuitous route to runway 29-11 forcing ATC to overload the central runway 28-10. The new runway to be built in 2021, when commissioned, will hopefully overcome the forced displaced threshold on the existing runway 29-11, which limits its usable length.

AAI Owns 55,800 Acres of Land

Minister of State, Ministry of Civil Aviation Jayant Sinha, informed Lok Sabha that the Airports Authority of India (AAI) owns around 55,800 acres of land across the country out of which 798 acres has been encroached. The use of land under AAI is restricted to discharge its functions related to airports; but the National Aviation Policy 2016 envisages to unlock the potential of land by liberalising the end-use restrictions for existing and future airports, he said. The majority of the land area under encroachment is around Mumbai and Juhu airports, which are inhabited by slum dwellers. The land under encroachment here is 358.15 acres. Other major encroachments are 127.37 acres in Bhopal and 119.82 acres in Hyderabad. The Mumbai International Airport Ltd has entered into an agreement with the Government of Maharashtra in order to remove the encroachment from airport land in coordination with AAI. In the case of Bhopal airport, Madhya Pradesh government has agreed to exchange 96 acres of land with AA and provide an alternate site for the remaining land area. “The process of rehabilitation of illegal occupants is a subject matter of concerned state governments and the role of AAI and other private operators is limited to assistance and persuasion. Nonetheless, AAI has undertaken all efforts in an active manner to coordinate with the concerned state governments to remove such encroachments,” Sinha said.

( ROTARY WING India’s First Heli-Taxi Service at KIA

You could soon take a helicopter taxi from Kempegowda International Airport (KIA)

www.spsairbuz.com

and reach Electronics City in 15 minutes. Launched by Minister of State for Civil Aviation Jayant Sinha on August 4 this year, the service is all set to takeoff in three months. KIA is the first airport and Bengaluru is the first city in the country with such a service. Operated by Thumby Aviation Private Ltd, the Heli-Taxi service will initially fly two helicopters, a Bell 412 with two pilots carrying 13 passengers and a Bell 407 with two pilots and five passengers. The fleet will be expanded based on demand. Equating the HeliTaxis to the UDAAN project for regional connectivity, Sinha said the service will ensure quick, seamless transfers to and from the airport at a cost similar to a luxury taxi. Although the fares have not been fixed, the KIA-Electronics City service could be in the range of `3,000 to `4,000, according to Group Captain K.N.G. Nair, Chairman and Managing Director, Thumby Aviation. The infrastructure at Electronics City is ready to land the helicopters. About 60,000 passengers pass through KIA every day. Even if 100 of them take the Heli-Taxis, the service will become viable. The operator, based on an extensive pre-launch study, has initially targeted about 60 to 70 passengers daily.

Crash of Helicopter Carrying Chief Minister Fadnavis

The initial probe conducted by the Aircraft Accident Investigation Bureau (AAIB) into the crash-landing in May this year of the helicopter carrying the Maharashtra Chief Minister Devendra Fadnavis, has prima facie found lapses on the part of the pilot which could have led to the accident. The AAIB which comes under the Ministry of Civil Aviation, has wrapped up its initial probe into the helicopter accident and submitted its report. Chief Minister Devendra Fadnavis had a narrow escape when soon after takeoff, the helicopter got entangled in the wires overhead and crash-landed in Latur district in Maharashtra after the pilot tried to descend due to bad weather. “The pilot failed to assess the load on the helicopter on a day of high temperature. Since high temperature makes it harder for a helicopter to get off the ground, he should not have taken off with almost full load,” the official added. Besides, the Standard Operating Procedure laid down for helicopter operations, was also not followed properly, a source in the AAIB said. SP

Interview

Embraer Commercial

Exclusive

Cesar Pereira is the newly appointed Vice President of Commercial Aviation for Asia-Pacific. Cesar has been working at Embraer for 14 years and prior to his current role, he was the Head of Consulting at Embraer Commercial Aviation, where he worked hand in hand with airlines to shape their planning and strategies.

‘Profit Hunter’ Unleashed Embraer estimates that the Asia-Pacific region, including China, will see 1,710 new deliveries by 2036, and the total in-service fleet reach 1,790 aircraft over the same 20year period. Identifying Asia-Pacific as one of the most promising markets for the E-Jets, in a one-on-one with SP’s AirBuz, Cesar Pereira outlines his vision and plans for the region.

PHOTOGRAPHs: Embraer

SP’s AirBuz (SP’s): How do you feel taking over the responsibility of Asia-Pacific region? Cesar Pereira (Pereira): Asia-Pacific is a fascinating region. I feel extremely excited about the opportunity to learn about the region and its specificities, but also happy to bring new insights from my previous experience of working with several airlines all over the world, from different business models. SP’s: What are your plans towards this region? Pereira: I see untapped opportunities in Asia-Pacific that our 70130+ seat jets can unlock. The rapid growth of air traffic in the region over last decade is very concentrated on primary markets, which are over-competitive and airlines are finding it hard to make profits with their large-capacity aircraft. There are about 158 markets where there are typically four competing airlines with more than 10 daily flights, yet we have

identified over 800 markets that have less than 1-5 daily flights. These routes could benefit from better frequency levels by using 70-130 seat jets. We are advocating to airlines the benefit of moving from ‘red oceans’ to ‘blue oceans’. In India, for instance, there is a big gap between 70-seaters turboprops and 180-seaters narrowbodies. The first mover in the 70-130+ seats segment will have a great advantage by tapping this gap. We see a great potential in India given the opportunities for further regional connectivity and remain actively engaged in this very promising growth market. In the 70-130+ seat market segment, we estimate an industry demand of up to 350 units over 20 years, depending on how the market evolves, which would enable India to enhance its regional connectivity. These jets would be used to grow secondary and tertiary markets and with the option of bypassing the major metro airports to avoid air traffic congestion. SP’S AIRBUZ • Issue 4 • 2017 • 7

Interview

Embraer Commercial

But enhancing connectivity while improving profitability is the key. Not by chance we call the E195-E2 the ‘Profit Hunter’. In addition of having a similar CASK as A320neo and B737 MAX 8, the E195-E2 has 20 per cent lower trip cost. But even more important, it does not erode the yields (unit revenue) as the larger narrowbodies. We cannot forget that airline business follows strictly the supply and demand rule. This means when airlines add more capacity (seats) to the market, the competition increases and the price drops. The outcome is not good for the airlines as they may end up losing money. Last but not least, bigger airplanes are more expensive to buy and to operate. It is proven that the E-Jets provide a higher Return on Aircraft Asset (ROaA), which is what most investors are looking for. The reason is rather simple: E-Jets provide higher profit per seat for lower invested capital. In other words, you can get higher return for each invested seat.

for the E-Jets. Intra-regional RPKs grew at 8.2 per cent CAGR over the past 10 years – a trend that is set to continue, underpinned not only by increasing affordability and broadening air networks, but mainly by a combination of a massive capacity inflow in the system and the need to stimulate traffic and populate the ever-expanding fleets. The Indian market has been topping the month-on-month growth in the last two years, with an RPK growth rate exceeding 20 per cent. The airline industry in the member states of the South Asian Association for Regional Cooperation (SAARC), led by India, is projected to grow by 9.0 per cent CAGR by 2036 — the fastest growing region in terms of RPKs — followed by China with a projected RPK growth rate of 6.4 per cent annually over the next 20 years. This growth will place the two countries, along with Japan and Indonesia, among the ten largest passenger markets in the world by 2036. While it is clear that Asian airlines will experience strong

SP’s: Which markets are the matured markets in Asia-Pacific region? Pereira: Australia and Japan represent the most mature markets in the Asia Pacific region. Generally, a mature market will demonstrate a capacity discipline where capacity is primarily added by increasing flight frequency. It also shows an emphasis on convenience, including sophisticated secondary and tertiary city networks, operating independently from major Tier-I hubs. In a mature market, there is a co-existence of regional, low cost and full service carriers, each serving and benefiting a segment of the population. SP’s: Which markets are the developing markets in this region? Pereira: The majority of markets in the Asia-Pacific region can be classified as developing markets. The first thought of course goes to China, whose growth in all segments has been well documented and reported upon. Embraer holds the market-leading position in terms of 70 to 130 seat aircraft operating in China. However it is equally important to highlight that the Indian aviation market has seen some of the highest year-on-year RPK growth rates in the world. Bearing that in mind, and looking to the broader SAARC region, we anticipate that through 2036, RPKs will grow at a compound annual growth rate of 9 per cent. Additionally, with a large domestic population of its own, the Indonesian aviation market will continue to rapidly develop, which will have a further effect on driving greater demand for point to point connectivity through the broader ASEAN region. SP’s: Which markets are the most promising markets for Embraer Commercial in next 5, 10, 15 years? Pereira: Asia-Pacific for sure is one of the most promising markets

“Enhancing connectivity while improving profitability is the key. Not by chance we call the E195-E2 the ‘Profit Hunter’. In addition of having a similar CASK as A320neo and B737 MAX 8, the E195-E2 has 20 per cent lower trip cost.”

8 • SP’S AIRBUZ • Issue 4 • 2017

www.spsairbuz.com

RPK growth of 5.7 per cent annually by 2036, doubts remain if the airline industry can generate healthy and sustainable financial performance due to over-capacity and intense competition. SP’s: Technologically how would you compare Embraer E2 with A320neo and B737 MAX? Can you also indicate on specific advantages and disadvantages versus the two programmes? Pereira: The E2 is a new design in a proven platform. In the design of the E-Jets E2, Embraer has always taken the opportunity to make major structural, aerodynamic, and systems improvements all drawn from the vast operating experience of the current generation E-Jets programme. The most notable of these include, but not limited to: l An all new wing, with a bespoke design for each member of the E2 family; l 4th generation full fly by wire system, offering improved flying qualities and fuel efficiency;

Interview

Embraer Commercial

An all new interior, designed in partnership with PriestmanGoode, that takes Embraer’s market leading passenger experience to a new level The E-Jets E2 is powered by Pratt & Whitney’s next generation Geared Turbofan engine which will have time to mature further when our aircraft enter into service from 2018 onwards. The combination of these attributes enables the E-Jets E2 to be the most efficient single aisle aircraft family. It is important to note however, that the E-Jets E2 family spans the capacity range from roughly 70-130+ seats, whereas the larger A320neo and B737 MAX aircraft cover the mid-160s to high-180s range. Thus our products do not compete directly with the larger narrowbodies, but instead offer a complementary option to an airline’s fleet, by unlocking the flexibility to grow into new unserved markets. Take for instance the E195-E2: it can offer a capacity up to

“our products do not compete directly with the larger narrowbodies, but instead offer a complementary option to an airline’s fleet, by unlocking the flexibility to grow into new unserved markets.” an approximate 50 per cent share of deliveries, we are optimistic that the E-Jets E2 will reflect a similar appeal. SP’s: Usually the perception is that turboprops operations remain economical. How do you counter this? Pereira: Inevitably, there will be a niche that turboprops offer the only viable solution for operations. This can include very short sectors, or those routes serving very short (less than 1,200 metres) or unpaved runways. However, once sector lengths begin to increase, the slower speed of the turboprop, makes it increasingly uncompetitive against the jet. In fact, we routinely see this cross-over point between turboprop and jet to lie around the 200-250nm threshold. With the low fuel price environment set to continue for the foreseeable future, the strength of the E-Jets or E-Jets E2 platform on sectors in excess of 200nm versus the turboprop will only grow — and this is even before we consider other E-Jets attributes, such as considerably higher cargo capacity, and superior passenger comfort and experience.

Outperforming Rivals: Profit Hunter at the Paris Air show 2017

146 seats, it can approach the seat cost economics of the larger A320neo, but deliver roughly 20 per cent lower cost per trip. SP’s: What is the current and future contribution of AsiaPacific region in terms of sales of your jets as per your own market outlook for next few years? Pereira: As of the end of 1Q2017, the Asia Pacific region, including China, saw 150 E-Jets aircraft in service with 13 operators. This fleet size will continue to increase if we consider our backlog and the recently announced orders at the Paris Air Show from Japan Airlines and Fuji Dream Airlines. Looking to the future, Embraer’s 2017 market outlook estimates that the Asia Pacific region, including China, will see 1,710 new deliveries by 2036, and the total in-service fleet reach 1,790 aircraft over the same 20-year period. Considering that, within its segment since the 2004 entry into service of the current generation E-Jets, Embraer has maintained

SP’s: In India, the hubs such as Delhi, Kolkata, Mumbai, etc remain quite congested causing chaos, wastage of aviation fuel, etc. What kind of solution do you think you can propose? Pereira: One of Embraer’s strategies in India very much involves the concept of “hub bypass”, or essentially serving 2nd and 3rd tier cities by way of direct connectivity, thus alleviating the need to connect through one of the six major metros. This bring me back to the comment I raised earlier about the complementary role of the 70-130+ seat segment with the larger narrow bodies. Given slot constraints and congestion, we recognise that airlines will generally prefer to deploy larger gauge aircraft between the major metros like Mumbai and Delhi but this is where the smaller E-Jets and E-Jets E2 aircraft can offer a complementary solution to connect those cities that could not otherwise be economically served by the larger gauge aircraft. These smaller “right-sized” aircraft offer a new strategic mindset to the airline, as it drives a shift from competing to creating new market space, and seeking out untapped opportunities. SP’s: What kind of leasing assistance Embraer provides to its potential customers? Which all types of leases – can you elaborate a little? Pereira: Both the E-Jets and E-Jets E2 programs have enjoyed considerable interest and support from the leasing and finance community. This has included some very significant direct orders on both the current generation and E2 platforms. At present, there are roughly 30 leasing companies active on the program, representing in excess of 30 per cent of the fleet. SP SP’S AIRBUZ • Issue 4 • 2017 • 9

drones

regulations

DRONES AND CIVIL AVIATION The variety and number of UAVs in the non-military segment, the roles these are being employed in and their capability as well as performance levels, are multiplying rapidly

ILLUSTRATION: Anoop Kamath

by B.K. Pandey

n Sunday, August 20, 2017, flight operations at Indira Gandhi International Airport at Delhi, one of the busiest in the country operating around 70 flights in an hour i.e. more than one flight every minute on an average, had to be suspended temporarily when late in the evening, a Drone was spotted on one of the three runways by a pilot of an AirAsia India aircraft that was coming in to land. On further investigation it was discovered that the Drone spotted by the pilot was being operated by civilian photographers without any authority or clearance, to cover a private function in the vicinity of the airport. Flight by the Drone was clearly unauthorised and it goes without saying that such unregulated operations by Drones, more appropriately known as Unmanned Aerial Vehicles 10 • SP’S AIRBUZ • Issue 4 • 2017

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(UAVs), in the vicinity of airports or in controlled civil air space, are indeed becoming is a serious hazard to safety of manned aircraft operating in a regulated environment not only in India, but in all other parts of the world as well. UAV – Military and Civil. UAVs have been employed for years by the armed forces of several nations across the globe including India, in a variety of roles. The list of countries using military UAVs, as well as the roles in which these are employed, continue to expand and cover hitherto unexplored areas even including aerial combat. Today, the United States Air Force (USAF) trains more UAV operators also called “Remote Pilots” than pilots for manned aircraft every year. In fact, Robert Gates, the former Secretary of Defence when he was in office, had stated

drones

regulations

that the F-35, the latest fifth-generation aircraft from Lockheed Martin, is likely to be the last manned fighter the USAF will buy. Even if the prognosis does not come true, there is little doubt that military UAVs will continue to proliferate all over the world. In the next two decades, the strength of military UAVs in Israel is predicted to exceed the strength of manned aircraft. While the rate of growth of unmanned platforms in India, may not be as high as in the Western nations, the fact is that even with the rate at which this segment is growing at present or is likely to grow in the foreseeable future, will add a new dimension to the problem of air traffic management in civil aviation across the nation. In India, operations by military UAVs are generally undertaken in airspace controlled by the military. In the civil aviation domain, UAVs are operated by agencies both within and outside the government. UAVs employed in non-military applications are generally smaller in size as compared to those used by the military and these have been and are being employed for missions related to search and rescue, disaster management, aerial filming, survey, crop spraying and inspection of power or pipe lines. All these operations are generally undertaken at very low altitudes and as such have not usually been in conflict with regular manned air traffic in controlled civil air space except when carried out in the vicinity of active airports as in the case of the episode at Delhi airport cited above. What is noteworthy is that the variety and number of UAVs in the non-military segment, the roles these are being employed in and their capability as well as performance levels are multiplying rapidly. In view of the immense potential UAVs have to offer in the civil domain, their rapid growth is inevitable. As such, the resultant implications of air operations in the domain of civil aviation will undoubtedly be serious and can no longer be ignored. As per the Directorate General of Civil Aviation (DGCA), the civil aviation regulatory authority in India, it has become necessary to introduce appropriate regulatory mechanisms to ensure the proper integration of operations by UAVs with manned aircraft operating in controlled civil air space. This is necessary and vital for the safety of manned air traffic. Integrating UAVs in Civilian Airspace. The integration of operations by UAVs into controlled civil air space will, without doubt, involve a variety of complex operational, procedural and technological challenges. For UAVs to operate in controlled airspace, these platforms will need to meet the same level of airworthiness requirements as manned aircraft to be certified by the DGCA. Each of the elements and technology that make an aerial platform unmanned such as the “sense-and-avoid” system, will require its own airworthiness certification. This is where the industry and the regulatory authority will need to interact and coordinate their efforts. Just as in the case of a manned aircraft, for a UAV that is in flight, there are three areas in which interface will be necessary. These are firstly between the Remote Pilot controlling the UAV from the

In the wake of the incident at Delhi airport on August 20 this year, the DGCA has revived efforts to regulate the use of UAVs

ground, secondly, between the UAV and the Air Traffic Control Centre (ATC) and thirdly, between the UAV and the other traffic, both manned and unmanned, operating in the same airspace. At present, UAVs are not fully autonomous and as such, reliability of the data link, direct or through satellites, between the unmanned platform in flight and the Remote Pilot who may be sitting on the ground even thousands of miles away, would be of critical importance. The integration of unmanned platforms with manned aircraft traffic in national air space will require review of current policies, procedures, standards, regulations, environmental impact, privacy and legal issues, identification of deficiencies in current UAV technologies and development of new technologies. The new technologies will have to be developed that will make the UAV fully autonomous. There will also be a need for a massive upgrade of ground based Air Traffic Control system and related infrastructure with clear thrust towards total automation. The Indian Scene. While the US and Europe are leading global efforts for the integration of UAVs with manned air traffic in civil airspace, India is unfortunately lagging far behind. The fact is that developments in the regime of UAVs in the civil domain have not been as impressive as in the West and this is attributable to the absence of favourable policies and regulations to encourage indigenous design, development and manufacture of unmanned platforms. This segment of the aviation industry also suffers from the absence of security guidelines as well as lack of suitable mechanism to enforce these even if these were available. This is one reason why there has been unregulated proliferation of UAVs in India resulting in unmanned platforms becoming a serious security hazard. In 2014, the DGCA had issued a public notice prohibiting the launch of a UAV by private individuals or any non-governmental agency. This restriction was imposed on account of security concerns as UAVs whose operations are not properly regulated, could be used by anti-national elements to carry out attacks against vital installations or public places. Unfortunately, such a notification would unwittintgly have been a serious disincentive for entrepreneurs desirous of investing in the Indian aerospace industry in the private sector for research and development of UAVs. Also, as of now, there are no regulations for certification of Remote Pilots and UAVs in India. Two years later, in April 2016, the DGCA issued a fresh circular in which the regulator observed that UAVs are proliferating into the recreational field and are likely to be used in several other domains causing problems for the regulator with regard to safety of other users of airspace as well as persons and infrastructure on the ground. The regulator stated that in view of technological advancements in this field over the years and their increased civil applications, it has become necessary to develop guidance material to regulate this activity. In this circular, the regulator laid down guidelines for obtaining Unique Identification Number (UIN) as well as for operation of UAVs in civil airspace. However, there were no concrete steps towards proper integration of UAVs with manned air traffic. In the wake of the incident at Delhi airport on August 20 this year, the DGCA has revived efforts to regulate the use of UAVs and has announced its intent to come out with a draft regulation for operation of UAVs in the near future. However, proper integration through automation of UAVs as well as the air traffic control system is still far away. Regulatory measures on paper will only impede the growth of UAVs in Indian airspace. SP SP’S AIRBUZ • Issue 4 • 2017 • 11

drones

Security

Illustration: Anoop Kamath

AIRPORT SECURITY – PLUG THE GAPS What magnifies the overall threat matrix is the China-Pakistan collusive anti-India nexus that has no compunctions to exploit terrorism as a tool for terrorising India by P.C. Katoch 12 • SP’S AIRBUZ • Issue 4 • 2017

www.spsairbuz.com

drones

Security

photograph: DJI

n August 20, 2017, flight operations at Delhi airport were suspended for around two hours with closure of the runways when an international airline pilot spotted a drone-like object operating in the area. Later in the evening, another international airline pilot spotted a similar object near Terminal 3, following which flight operations were halted for 40 minutes. As per reports, the police have not yet identified the individuals who were operating these drones. Several flights had to be diverted away from Delhi because of these disruptions. This is perhaps the first such incident in India; but there have been many at Heathrow Airport in London where drone enthusiasts flew their machines close to the airport. The danger here is terrorists using drones to down aircraft and that too by night, as it would be difficult for pilots to spot the drones. Recently, a drone landed undetected on HMS Queen Elizabeth, Britain’s new and largest aircraft carrier. A spokesman for the British Ministry of Defence said: ”We take the security of HMS Queen Elizabeth very seriously. This incident has been reported to Police Scotland and an investigation is under way. Meanwhile, we have stepped up our security measures in light of this incident”. While the drone that landed undetected on HMS Queen Elizabeth was taking photographs, it could have been deployed for sabotage as well. Just last month, a lone Russian drone reportedly carrying a Thermite grenade, blew up billions of dollars worth of ammunition when it struck the Balakliya military base in Eastern Ukraine. We have large built up areas adjacent to airports and along the flight path of aircraft taking off or landing. The aircraft are thus particularly vulnerable when flying low during landing and takeoff. Besides, the capabilities of drones have gone up exponentially. In May 2016, ten DJI Phantom-4 PRO hi-tech drones made in China, equipped with advanced satellite navigation system and capable of flying at 6,000 metres with a half kg payload, were seized from a passenger at Kempegowda International Airport, Bengaluru. The DJI Phantom-4 PRO drone has a “Tap-by-Use“ feature which allows users to tap on an individual in a crowd on his screen and allowing the drone to lock and track the person. Now, Florida-based ‘Duke Robotics’ has unveiled the TIKAD, a custom-built multi-rotor drone that can carry and fire various military weapons, including semi-automatic rifles and grenade launchers. Just prior to Republic Day in 2016, Mohammad Abdullah from Hyderabad managed to enter the Indira Gandhi International Airport (IGIA) at New Delhi on a fake Etihad ticket for UAE and spent ten days in the terminal building unnoticed. The sequence of events was as follows. On January 11, 2016, he checked in with Etihad, who found his ticket to be forged and reported the matter to the Central Industrial Security Force (CISF). However, he was let off. Within an hour, he took another printout of the ticket and reentered the airport through another gate. This time, he remained there for ten days before a housekeeping staffer told CISF that he

Today also, there are no measures in place for checking authenticity of the ticket carried by passengers

Chinese made DJI Phantom-4 PRO hi-tech drone

had noticed the man at the terminal for the past few days. CISF then apprehended Mohammad Abdullah and handed him over to Delhi Police on January 20, 2016. In 2015, more than 50 people were caught at IGIA, New Delhi holding fake tickets, while about 20 cases were reported in 2016. In March 2016, a young man managed to sneak into the IGIA terminal with a pistol. In May 2016, six men were arrested from the IGIA terminal for roaming around suspiciously. A week before that, police arrested a foreigner who had sneaked in to see off his girlfriend. Today also, there are no measures in place for checking authenticity of the ticket carried by a passenger. Web check-in tickets have barcodes and so do boarding passes. So why bar codes can not be made mandatory for air tickets issued by airlines and travel agents, which can be checked at the entrance of the terminal? Also, according to the media, IGI airport follows the “SHA Security Plan” under which a person does not have to undergo frisking before entering the terminal building, but is not this taking the easy route? Have we looked around and observed what procedures international airports in other countries follow? There is no way one can enter international airports in countries such as Nairobi or Adis Ababa without being frisked as also screening of baggage and Adis Ababa being major hub on international routes, has equal number of daily passengers as IGIA if not more. Another issue is of baggage screening. Earlier, at Delhi airport, baggage screening was done at the entrance to the ’passenger’ area. But check-in baggage is now screened after being booked at the check-in counter. At Kolkata international airport, the screening machine is at one end of the passenger area and the small placard saying you need to screen the baggage is next to individual check-in counters, which you may notice only after you progress further up in the long queue. The CISF provides security services to 59 airports in the country operated by Airports Authority of India (AAI) and a few private companies So why can not procedures be standardised? If we can not ensure screening of baggage before or at the very entrance to the passenger area of the airport terminals, are we not facilitating terrorist attacks similar to what happened at Brussels airport? What magnifies the overall threat matrix is the China-Pakistan collusive anti-India nexus that has no compunctions to exploit terrorism as a tool for terrorising India. We need to take the threat seriously and plug the gaps in the system to secure our airports for the wellbeing of the travelling public. SP SP’S AIRBUZ • Issue 4 • 2017 • 13

Regional Aviation

Role

JETS Can Decongest MAJOR HUBS With the major hubs heavily congested, the question analysts ask is why operators do not connect regional airports with ‘right’ size aircraft without transiting through the major hubs? by R. Chandrakanth

ILLUSTRATION: Anoop Kamath

DELHI

PUNE

14 • SP’S AIRBUZ • Issue 4 • 2017

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DEhradun

Regional Aviation

Role

ndian aviation continues to soar to greater heights. The Directorate General of Civil Aviation (DGCA) has stated that India’s domestic airlines carried 99.89 million passengers in 2016 as against 81.09 million in 2015, registering a 23.18 per cent growth. By 2020, passenger traffic at Indian airports both domestic and international, is expected to increase to 421 million. India has overtaken Japan (97 million domestic passengers) to take the third spot, but it is still way behind China (436 million) and the US (719 million). However, India will become the third largest market two to three years ahead of what has been projected earlier. While such humongous passenger growth is good, the worrysome part is that infrastructure, particularly airports, will come under severe pressure, unless of course, corrective action is taken and in time. India’s key airports at Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata account for 66.5 per cent of India’s total air traffic and the rest comes from the nearly 100 other operational airports. The six airports listed above are the major hubs and are facing capacity crunch. These six locations require new airports by 2025-26 or even earlier. Meanwhile, the government is developing 50 un-served and underserved airstrips as low-cost airports in Tier-II and -III cities. Each of these airports is estimated to cost between `100 crore to `150 crore. It is not just air traffic congestion at these major hubs, Delhi and Mumbai being the worst affected, there exist problems at the terminal level as well. This is likely to worsen as more planes get inducted into the fleet of the airlines. Presently, India has over 430 aircraft in service and the airlines are expected to add 100 aircraft in the next 18 to 24 months and over 700 airplanes in the next decade, all of which will add to the congestion woes of the hubs. ‘RIGHT-SIZE’ AIRCRAFT FOR POINT-TO-POINT TRAVEL. With the major hubs heavily congested, the question analysts ask is why operators do not connect regional airports with ‘right’ size aircraft without transiting through the major hubs? From the perspective of a passenger travelling from an airport in Tier-II or -III city, presently air travel is cumbersome. He has to be at the airport at least 45 minutes before departure, add to that the flight time to a major hub, before reaching final destination. The layover time is a nuisance. Though air travel reduces the travel time from point-to-point, secondary and tertiary sector passengers tend to spend more time in accessing the airport and

Congestion at the hubs causes l

Much longer travel time

Hub airport resources over-stretched

Delays in landings

Delays in take-offs

Extra burning of aviation fuel

Double take-off and Double landing

Twice the process of Security clearances

Unsolicited wastage of passengers’ time

Passengers’ discomfort

Increased environmental issue, thanks to delayed landings

in layovers. Analysts hope that in ‘UDAN,’ regional connectivity will be such wherein operators will look at routes that will avoid major the hubs. Embraer calls it the concept of ‘hub bypass’. LONG LAYOVERS. One of the examples analysts give is why can’t there be a flight between Madurai, a temple town in South India to Jaipur, the pink city in Rajasthan or vice versa and the frequency of these flights can be determined based on demand. A SpiceJet flight from Jaipur to Madurai takes 7 hours 55 minutes with two layovers, one in Delhi for 1 hour 5 minutes and another in Chennai for 35 minutes. This is really stretched for a passenger who is seriously looking at ‘direct routing’ options, even if it means paying a little extra as he or she would be saving on time and layover issues. Presently, there is no such connection and a passenger from Madurai would have to make a trip via Chennai, Bengaluru or Delhi which is not only additional time in the air, but also additional airfare. The passenger from Madurai or Jaipur or any other such unconnected city by direct flights feels let down, even while the government is making grand plans for regional connectivity. While it is good to connect a hub to a Tier-II or -III city, the effort should be to connect Tier-II to another Tier-II or -III city and help decongest the hubs. REGIONAL JETS FOR PAN-INDIA COVERAGE. This could be done by deploying a regional jet which can fly the required distance without any stopover. The reasoning is that single-aisle aircraft such as the A320 is too big for the journey, leaving many seats unsold, while the turboprops are ideal for short haul. It is quite a situation for airline revenue analysts who have to suggest the right aircraft for such direct long routes and regional jets are best suited to fill that slot. With seating capacity from 70 to 130, these jets are not only capable of flying the pan-India distance but also can have optimal loads. As the next phase of air traffic growth is expected from India’s Tier-II and -III cities, many of these passengers being first-time flyers, the urgency to provide direct connections to important destinations across the country needs no emphasis. These travelers are looking at air travel for long routes, while for short distance travel between five and eight hours by surface transport, they can do it by taking an overnight bus or train or even driving down. Taking a flight for a destination which is five hours by road does not make any sense, as access to the airport itself takes about two hours (including check-in time, security clearance, etc) and travelling from the airport to the destination takes an average of an hour. The flight time is half hour to 45 minutes. All one is doing is saving about an hour, but paying an average fare between `2,500 and `3,000. Whether it is worth it, only the passenger can answer depending upon urgency and the preferred mode of travel. McKinsey report on airport congestion in metros states that airlines tend to deploy bigger aircraft to accommodate more passengers. McKinsey calls it ‘up-gauging’ wherein many airlines start using bigger planes even on short-haul flights. In 2002, nearly half of short-haul seat capacity at Beijing Capital International Airport was carried on wide-body aircraft. Wide-body usage fell significantly through 2010, as demand picked up for travel to secondary Chinese cities. But by 2012, a year after the airport became saturated, a new trend began. Wide-body use rose again as carriers were forced to upgauge in order to handle the increased volume of passenger traffic. SP’S AIRBUZ • Issue 4 • 2017 • 15

Regional Aviation

Role

Indicative information as to how hubs are getting congested as the right capacity is not being used for point-to-point connectivity Bengaluru to Imphal

Bengaluru to Srinagar Jet Airways

1 Stop

Layover in New Delhi

Indigo

1 Stop

Layover in Kolkata

1 Stop

Layover in Kolkata

SpiceJet

1 Stop

Layover in New Delhi/Jammu/Chandigarh

Air India

1 Stop

Layover in New Delhi

Hyderabad to Chandigarh

Vistara

1 Stop

Layover in New Delhi

Indigo

1 Stop

Layover in New Delhi/Mumbai

1 Stop

Layover in New Delhi

GoAir

1 Stop

Layover in New Delhi

Jet Airways

Indigo

1 Stop

Layover in New Delhi/Chandigarh

Air India

1 Stop

Layover in New Delhi

Bengaluru to Varanasi

SpiceJet

1 Stop

Layover in New Delhi

Indigo

Layover in New Delhi/Kolkata/Mumbai

Vistara

1 Stop

Layover in New Delhi

Bengaluru to Lucknow

1 Stop

Air India

1 Stop

Layover in New Delhi/Mumbai

SpiceJet

1 Stop

Layover in New Delhi/Hyderabad

Jet Airways

1 Stop

Layover in New Delhi

Bengaluru to Bagdogra SpiceJet

1 Stop

Layover in Kolkata

Jet Airways

1 Stop

Layover in Kolkata/Mumbai/New Delhi

Air India

1 Stop

Layover in New Delhi

Indigo

1 Stop

Layover in Kolkata

Vistara

2 Stop

Layover in Kolkata/Guwahati

Guwahati to Hyderabad Indigo

1 Stop

Layover in New Delhi/Kolkata/Bangalore

Jet Airways

1 Stop

Layover in New Delhi/Kolkata/Bangalore

Air India

1 Stop

Layover in Kolkata

SpiceJet

1 Stop

Layover in Bangalore

Go Air

1 Stop

Layover in New Delhi

Chennai to Lucknow

Indigo

1 Stop

Layover in New Delhi

Jet Airways

1 Stop

Layover in Mumbai

Air India

1 Stop

Layover in New Delhi

GoAir

1 Stop

Layover in Mumbai

Hyderabad to Amritsar Jet Airways

1 Stop

Layover in New Delhi

Air India

1 Stop

Layover in New Delhi

Vistara

1 Stop

Layover in New Delhi

SpiceJet

1 Stop

Layover in Mumbai/New Delhi

Ahemdabad to Kochi Jet Airways

1 Stop

Layover in Mumbai/New Delhi

Air India

1 Stop

Layover in Mumbai/New Delhi

SpiceJet

1 Stop

Layover in Chennai/Bangalore/Hyderabad

Indigo

1 Stop

Layover in Hyderabad/ Mumbai

Pune to Dehradun Indigo

1 Stop

Layover in New Delhi

JetAirways

1 Stop

Layover in Mumbai

Air India

1 Stop

Layover in New Delhi

Air India

1 Stop

Layover in New Delhi

Jet Airways

1 Stop

Layover in New Delhi

Go Air

1 Stop

Layover in Mumbai

SpiceJet

1 Stop

Layover in New Delhi

Indigo

1 Stop

Layover in Bangalore

Hyderabad to Lucknow

Bengaluru to Dibrugarh

Vistara

1 Stop

Layover in New Delhi

Air India

1 Stop

Layover in Kolkata

Jet Airways

1 Stop

Layover in New Delhi/Mumbai

Indigo

1 Stop

Layover in Kolkata

Air India

1 Stop

Layover in New Delhi

Jet Airways

1 Stop

Layover in Kolkata

GoAir

1 Stop

Layover in New Delhi

Source: Above is an Indicative list out of data collated from respective airlines’ websites

CONNECTION-HEAVY ROUTES GET DROPPED. Evidence suggests that as an airport gets more constrained, airlines drop connection-heavy routes in favour of routes with high point-to-point demand, which are more profitable. Airlines operating out of congested airports tend to increase the frequency of flights on existing routes, rather than offer new destinations. Between 2002 and 2014, many large, unconstrained airports in and around Europe expanded their networks; Charles de Gaulle Airport in Paris added approximately 30 new cities to its list of short-haul destination list during this time, and Istanbul Ataturk Airport added more than 60. Airlines at Heathrow, however, actually reduced the number of short-haul destinations they serve 16 • SP’S AIRBUZ • Issue 4 • 2017

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but increased the frequency of flights to those cities. In short, as airports get busier, they offer more flights to fewer cities; unconstrained airports serve more cities, less frequently. This pattern is similar for longer flights. Seats on direct flights to and from congested airports are at a premium. Demand outstrips supply, which means airlines sometimes increase prices to focus on premium traffic. In 2012, the average price of a direct flight to or from Heathrow was more than three times that of nearby Gatwick. This makes perfect sense when the travel is from a hub to another hub or another destination in demand which can be classified as primary market. This primary market is extremely competitive. Embraer has identified about 158 markets which

Regional Aviation

Role

Embraer E195-E2 has been designed to maximize returns and efficiency on high-density routes

PHOTOGRAPH: Embraer

Smaller “right-sized” aircraft offer a new strategic mindset to the airline, as it drives a shift from competing to creating new market space and seeking out untapped opportunities have about four competing airlines with over ten daily flights and one can understand the kind of margins the airlines will be having, unless of course, it is peak season when airfares skyrocket. Embraer has identified over 800 markets which have less than one to five daily flights which can be easily served by a regional jet. Based on this market study, it has estimated an industry demand of up to 350 units in the 70-130 seat segment. Making similar argument are airframers such as Canada’s Bombardier with CRJ700/900/1000 aircraft, Russia’s Sukhoi offering Superjet International, China’s ARJ21, Ukraine’s Antonov with An-148/158 and Japan’s Mitsubishi Regional Jet. Embraer’s E-Jets making the right pitch. The Embraer E-Jet family is a series of medium range twin-engine regional jet airliners, carrying 70 to 146 passengers commercially.

The Brazilian aerospace conglomerate Embraer has created something called ‘FleetSmart’, a comprehensive range of fleet optimization solutions based around three key principles – design smart, experience smart and business smart. The E-Jets 170; 175; 190 and 195 have been around the world, giving operators an opportunity to capitalize on routes that neither turboprops or wide-bodies can viably handle. The E-Jets are designed for short to medium range flights, thus being the answer to regional aviation. The E-Jets E2 are the latest offering from Embraer and the largest aircraft in the E-Jet E2 family, the E195-E2 has been designed to maximize returns and efficiency on high-density routes, where the A320s and Boeings cannot fly with full capacities. The E195-E2 is optimized to cover more than 99.9 per cent of routes within the single-aisle segment, thus tapping routes which are not hitherto directly connected. The E2 seating configuration comes in categories — three classes 120 seats — 12 seats @36”, 28@34” and 80@31” pitch; Single class 132 seats @31 pitch and 146 seats@28” pitch. The runway legends have been the ERJ 130; 140; 145 and 145XR. The airliner is making the right noises for regional aviation, while directly and indirectly solving the issue of congestion of airports. CHINA’S ARJ21 FOCUSING ON SECONDARY CITIES. China is aggressively looking at connecting its secondary cities with regional jet and its ARJ21 is rightly positioned for that. The ARJ21 is the first short-medium range turbofan regional aircraft developed by the Chinese. It has a layout of 78 to 90 seats and a range of 2,225 to 3,700 km. The aircraft has already notched up orders of over 400 from 19 different customers, signifying the need to fill the gap between short-haul to narrow-body aircraft and also of the need to connect secondary cities. Similarly, Russia’s SSJ100, a 100-seater airliner is being widely used by Aeroflot to connect the hinterland. While it has a fairly good base in Russia, it has not made any significant inroads internationally, except in Mexico, Armenia and Ireland. BOMBARDIER’S SUCCESSFUL REGIONAL JET PROGRAMME. Making a strong case for regional jets is Bombardier’s CSeries aircraft, the only single-aisle plane specifically designed to serve the 100-150 seat market. This drives the aircraft’s phenomenal economic proposition and performance, opening up new opportunities in this segment. And for mediumhaul applications, the CRJ Series family of aircraft is the benchmark for regional jet efficiency in the 60 to 100-seat segment, offering up to ten per cent advantage in operating cost, reduced environmental impact and enhanced cabin interiors. With over 1,900 CRJ Series aircraft ordered worldwide, Bombardier’s CRJ Series family of regional jets is recognised as the most successful regional aircraft programme in the world. Then there is the Antonov An-148 which has a maximum range of 2,100-4,400 km and is able to carry 68-85 passengers depending upon the configuration. The Antonov An-158 is a stretched fuselage version of the aircraft, accommodating up to 99 passengers. Meanwhile, Mitsubishi Heavy Industries (MHI) has announced that the first delivery of the Mitsubishi Regional Jet (MRJ) will take place between mid-2018 to mid-2020, a programme delayed, but it is on as there is a market for the medium-range aircraft. These smaller “right-sized” aircraft offer a new strategic mindset to the airline, as it drives a shift from competing to creating new market space and seeking untapped opportunities. Besides opportunities, it helps in decongestion of hubs across the world. SP SP’S AIRBUZ • Issue 4 • 2017 • 17

Interview

Pratt & Whitney

Pratt & Whitney is committed to continued customer support to meet the new demands of the 21st century. The PurePower GTF engines are a leader in sustainable aviation. These engines are cleaners, greener and quieter. Pratt & Whitney is transforming aviation with the most technologically advanced engines on the commercial engines, military engines, small jet and turboprop engines. The company opened its Global Customer Training Centre in Hyderabad, India, in September 2015. This is the third centre of its kind in the world. Palash Roy Chowdhury, Managing Director, Pratt & Whitney India, in conversation with Neetu Dhulia of SP’s AirBuz.

PHOTOGRAPH: Pratt & Whitney

Pratt & Whitney Transforming Aviation Neetu Dhulia (SP’s): What is Pratt & Whitney’s contribution to the emerging aviation market in the country? Palash Roy Chowdhury (Chowdhury): Pratt & Whitney is part of United Technologies Corporation, one of the world’s largest suppliers of aerospace products, with an established presence in India. Offering engine solutions for over seven decades now, Pratt & Whitney has played a significant role in India’s aviation growth story. The company’s product suite includes large commercial engines, military engines, small jet and turboprop engines and other general, regional and civilian powered flight engines. Best known for its advanced technology and unique manufacturing techniques, Pratt & Whitney is committed to continued customer support to meet the new demands of the 21st century. The company is proudly leading the industry by creating environmentally friendly processes, innovative services and more efficient engines. There are well over 100 aircraft in India powered by V2500 engines made by Pratt & Whitney and International Aero Engines AG, a consortium in which Pratt & Whitney is a majority shareholder. The company is now delivering the PurePower® Geared Turbofan™ engines for Airbus aircraft ordered by airlines in India. There are also ten C-17 military transport aircraft in India that are powered by Pratt & Whitney’s F117 engines. Today Pratt & Whitney Canada powers close to 400 aircraft in general aviation, business aviation, regional aircraft and helicopters in India. This includes small turboprop in PT6 class and PW127 and PW150 on Regional aircraft, PW300, PW500, PW600 turbofans on corporate jets and turboshaft engines such as PT6B, PT6t and PW200. Pratt & Whitney Canada also powers the latest Turboprop trainers (Pilatus) inducted by the Indian Air Force. 18 • SP’S AIRBUZ • Issue 4 • 2017

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Pratt & Whitney is transforming aviation with the most technologically advanced engines on the commercial engines, military engines, small jet and turboprop engines, and other general, regional and civilian powered flight engines. With 26 development and production engine programmes, today is one of the most exciting chapters in Pratt & Whitney’s history. SP’s: How do you foresee India’s Aviation market in view of the UDAN scheme? Chowdhury: India is an important strategic market for Pratt & Whitney and we see a tremendous opportunity in the Indian government’s regional connectivity scheme, UDAN which will accelerate air travel penetration through regional connectivity and will make air travel affordable for many in India. UDAN scheme is a game-changer, as it will stimulate regional connectivity through a market-based mechanism thereby creating huge demands for air travel. This will also act as a multiplier effect in unlocking India’s tourism potential, increasing trade and creating job opportunities across verticals. As we move forward, we are slated to have hundreds of Geared Turbofan engines powering aircraft in India. This will be one of the largest install bases for our GTF engine on aircraft. In the regional connectivity space, aircraft such as the ATR or Q400 are powered by P&W Canada engines. As a long-cycle business, Pratt & Whitney has and will continue to make substantial investments in shaping the future of India’s civil aviation sector. We understand and are committed to serving the growing demands of our customers with a futuristic approach of improving the jet engine technology, which will power the industry for decades to come.

Interview

Pratt & Whitney

PHOTOGRAPH: purepowerengines.com

The India-Task Force aims to promote bilateral dialogue by being the voice of the industry, partnering with governments to organise trade missions and advocating for regulatory changes on behalf of its members. The Task Force will engage with various stakeholders to promote international best practices and address potential hurdles that surface as American and Indian companies deepen engagement in India’s burgeoning civil aviation market.

SP’s: How does Pratt & Whitney contribute in reducing the carbon footprint? Chowdhury: Pratt & Whitney is developing and powering nextgeneration propulsion systems and technologies that provide an immediate path to fuel efficiency, lower emissions and noise reduction.The need to reduce fuel consumption is one of the key requirements of the aviation sector. We have come out with a combination of improved engine technology, aerodynamic improvements and weight-saving technology in our engines which are effective in reducing the carbon footprint.The PurePower GTF engines are a leader in sustainable aviation. These engines are cleaners, greener and quieter. Cleaner. The Pure Power PW1000G engine family cuts fuel consumption by 16 percent versus today’s best engines from regional jets to mainline single-aisle aircraft. Fuel efficiency with the new-generation of engines will save airlines about 15 billion gallons of fuel, lowering fuel costs by $40 billion from now to 2025. We are working on Gen2 turbofan technology which is targeting additional fuel burn savings for the 2020s and beyond. Greener. The reduction in emissions among the new-generation engines will allow airlines to avoid 160 million tonnes of CO2 emissions through 2025 and cut carbon emissions by more than 3,600 metric tonnes every year; equivalent to taking three million cars off the road. Quieter. The PurePower PW1000G engine family reduces the noise footprint by 75 percent. That effectively means that in a surrounding airport community, such as LaGuardia Airport in the New York City area, about 500,000 fewer airport neighbours will be impacted with the noise from takeoff and landing. The GTF is already validated for five different advanced biofuels, and we are co-leading the process of approving even more. GTF engines address the whole picture, fuel, emissions, noise and maintenance. SP’s: Could you elaborate on your Make in India initiatives? Chowdhury: India is one of the most important strategic markets.

Pratt & Whitney recognises the country’s world-class engineering and technical proficiencies as well as market opportunities it offers. As a company that is deeply embedded in India as an investor, we firmly support the ‘Make in India’ campaign that translates the government’s vision of making India a global manufacturing hub. We intend to contribute to the sustainable economic growth and generate employment opportunities by building a strong ecosystem for nurturing innovation and jet engine production in the country. Pratt & Whitney sources engineering and design services from a number of Indian companies for some of its most advanced aerospace products. We have over 1,000 engineers in India working on global projects. We have established a chair and a centre of excellence at the renowned Indian Institute of Science focusing on high-end research in the area of turbo machinery. SP’s: Tell us about the Pratt & Whitney’s Customer Training Centre India. Chowdhury: Pratt & Whitney opened its Global Customer Training Centre in Hyderabad, India in September 2015. This is the third centre of its kind in the world after US and China and has been established to support our customers in the region. The centre will also help address the shortage of a skilled work force in India’s aviation industry. This world-class facility received certification from DGCA in April 2017, which means that the training centre is now fully approved to offer DGCA-approved training sessions on V2500-A5 engines. It is expected to soon offer courses on PW1100G-JM and other models from the PurePower® Geared Turbofan™ family of engines. We have already provided over 2000 student days training and are working with a number of universities and state governments to establish a robust aviation skill development platform in the country. SP’s: How do you plan to handle the glitches in the engines of the A-320neo airliners? Chowdhury: We are effectively addressing the early-service items with the help of our partners and customers. The engines are perSP’S AIRBUZ • Issue 4 • 2017 • 19

Interview

Pratt & Whitney

forming as promised in terms of fuel efficiency, emissions and reduction of noise footprint. The GTF engines continue to produce 16 percent fuel efficiency, 50 percent carbon emission reduction and 75 percent noise reduction, making it the engine of choice for the future. SP’s: Can you tell us about Pratt & Whitney’s aftermarket service EngineWise™? Chowdhury: Pratt & Whitney offers a unique combination of technology and innovation that can help improve engine maintenance planning for customers. Pratt & Whitney is unifying its aftermarket service portfolio through EngineWise™, the branded suite of aftermarket services, and will introduce new offerings to support customers’ evolving needs. It illustrates our commitment to provide smart maintenance solutions to help our customers respond faster to their operational needs to run their businesses efficiently. A key element of EngineWise is our use of data to predict maintenance needs and possibly prevent off-wing events, in partnership with our customers. Our philosophy is shared intelligence; the smarter we are together, the better service we can provide our customer. It offers a number of advantages, including: l State-of-the art data analytics and real-time intelligence to help predict and prevent operational disruptions before they occur. l Significant investments in new technology and resources to increase responsiveness and flexibility. l A growing portfolio of service offerings to provide smarter, more straightforward solutions. l Improved customer communications to drive more transparency and connectivity with our customers. Major offerings under the Pratt & Whitney EngineWise Service brand include: l Fleet Management Programmes – A customised, comprehensive dollar-per-flight-hour agreement to optimise cost of ownership over the life cycle of an engine. l Engine Overhaul Services – For operators who prefer the assurance of a fixed price or time and material engine maintenance solution. l Material Solutions – New and serviceable parts and part repair services provided by the engine OEM designed to extend part life and improve residual value. l New service offerings will continue to be added over time, based on customer needs. SP’s: Can you briefly talk about your new brand platform – ‘Go Beyond’ and what it focuses on? Chowdhury: We recently launched ‘Go Beyond’ - our new brand platform which represents both the company’s long-standing commitment to accelerating the technology of modern flight and the ‘never stop solving’ mindset of our employees. Over the course of Pratt & Whitney’s 90-plus year history, one element of culture has always stood out and that is dedication to pushing limits and ‘going beyond’ to find the next great innovative step forward. Every day we touch upon lives of people who depend on Pratt & Whitney engines in service today and it is a singular honour for everyone at Pratt & Whitney. This new platform is based on three solid imperatives: l Empowering our employees. l Optimising our operations.Engaging customers to transform their experience. With this new promising platform, We ‘go beyond’ for our partners, customers, and most of all, for each other, because we understand what we do results in people connecting with each other, 20 • SP’S AIRBUZ • Issue 4 • 2017

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economies benefiting from greater access to markets and trade, and ensuring militaries around the world are mission ready. P&W has always been a leader in innovation and we take a purposeful approach to our digital strategy to continue our industry leadership. Our story goes beyond just data points, to the creation of practical, pragmatic solutions that drive employee’s wellbeing and customer satisfaction. We are intent on delivering this value through prudent investments, building and expanding our digital solutions to get there. SP’s: You have been appointed as the Chairman of USIBC India-Task Force on Civil Aviation. What are the objectives of this task force? Chowdhury: I am honoured to be entrusted with the responsibility of leading this initiative at a time when the Indian aviation industry is poised to scale new heights. With the Task Force, we intend to support growth of US corporations in India by aligning with the priority areas of the Indian government and further nurture the spirit of entrepreneurship and job creation to successfully contribute to the global economy in the coming years.The India-Task Force aims to promote bilateral dialogue by being the voice of the industry, partnering with governments to organise trade missions and advocating for regulatory changes on behalf of its members. The Task Force will engage with various stakeholders to promote international best practices and address potential hurdles that surface as American and Indian companies deepen engagement in India’s burgeoning civil aviation market. SP’s: What all is being done in the regime of bio-fuels? Can you share the status on its implementation? Chowdhury: Pratt & Whitney has world-leading expertise in the development, testing, validation and combustion engineering of sustainable alternative jet fuels (SAJF). Millions of gallons of SAJFs have been contracted by commercial airlines with various fuel suppliers worldwide and Pratt & Whitney engines seamlessly fly with it every day. Our company continues to examine ways to expand our involvement with and usage of SAJFs within our own operations. More robust facts are as under: l Five sustainable alternative jet fuels (SAJFs) are approved for use in commercial jet aircraft today. l Seven more are in the testing and approval cycle. l All are blends of a pure bio-fuel or synthetic fuel with conventional petroleum-based Jet-A. l P&W has world-leading expertise in SAJF compositions, testing, validation, and combustion engineering l P&W has a key technical leadership position within the ASTM subcommittee responsible for SAJF approval. l All engine OEMs participate in the approval process and all have to concur on approval. l Once approved, SAJF may be used in any manufacturer’s engines. l Approved SAJFs are functionally indistinguishable from conventional Jet-A fuel. l Millions of gallons of SAJFs have been contracted by commercial airlines with various fuel suppliers worldwide and P&W engines seamlessly fly with it every day. l The principle advocacy group for SAJF is the Commercial Aviation Alternative Fuels Initiative (CAAFI). l P&W is very active within CAAFI, with leadership positions including co-lead of CAAFI’s R&D technical committee. l P&W is continuously examining ways to expand our involvement with and usage of SAJFs within our own operations. SP

Engines

P&W

Pratt & Whitney’s PurePower Geared Turbofan PW1900G engine will power the Embraer E190-E2 aircraft

Engine Dominance in Commercial Aviation

photograph: www.purepowerengines.com

With over 13,000 large commercial engines installed today, Pratt & Whitney provides dependable power to hundreds of airlines and operators every day

by R. Chandrakanth

onnecticut-based United Technologies Corporation (UTC) has all the reasons to celebrate the success of one of its companies – Pratt & Whitney which has established itself as one of the dominant players in engine development in commercial aviation. Of all the UTC companies, Pratt & Whitney has registered encouraging profits for the quarter ended June 30, 2017 compared to the same period previous year, while others are lagging behind a bit. Bringing to the market disruptive technologies, Pratt & Whitney is expected to take a leading role in commercial aviation. With over 13,000 large commercial engines installed today,

Pratt & Whitney provides dependable power to hundreds of airlines and operators every day. Its fleet of commercial engines has logged more than one billion hours of flight, powering the narrow- and wide-body aircraft that fly both passengers and cargo around the world. Not sitting on laurels, the company is continuously innovating in power-plant design, pioneering effort. The company’s patented technology has changed the boundaries of time and shortened the distance between people and places. In the realm of commercial aviation, its engine offerings include the best-selling PurePower PW1000G; V2500; GP7200; PW4000-94; PW4000-100; PW4000-112; PW6000; JTD8 and JTD9. SP’S AIRBUZ • Issue 4 • 2017 • 21

Engines

P&W

PurePower PW1000G ENGINE. Pratt & Whitney’s PurePower PW1000G Engine Family is not just a concept or a promise for the future—it is reality. With 20 years of research and development, component rig testing on all major modules, extensive ground and flight testing underway, two engines in the family certified and the PW1100G-JM carrying passengers on a daily basis, the PurePower PW1000G engine with Geared Turbofan technology delivers game-changing reductions in — Fuel burn; environmental emissions; engine noise; and operating costs. In the PurePower PW1000G engine family, a state of the art gear system separates the engine fan from the low pressure compressor and turbine, allowing each of the modules to operate at their optimum speeds. This enables the fan to rotate slower and while the low pressure compressor and turbine operate at a high speed, increasing engine efficiency and delivering significantly lower fuel consumption, emissions and noise. This increased efficiency also translates to fewer engine stages and parts for lower weight and reduced maintenance costs. The PurePower PW1000G engine’s fan-drive gear system is just one component of this next-generation engine. The PurePower PW1000G engine also incorporates advances in aerodynamics,

Pratt & Whitney’s array of engines have benefitted airlines substantially and this makes the UTC company a leader who understands the needs of the commercial aviation business which is highly volatile, affected by fuel prices and other factors.

lightweight materials and other major technology improvements in the high-pressure spool, low-pressure turbine, combustor, controls, engine health monitoring and more. Advanced Technologies. Pratt & Whitney has been actively testing all key components of the PurePower PW1000G engine family, with 16 technology rigs running around the world. The PW1100G-JM engine for Airbus A320neo family of aircraft and the PW1500G engine for the Bombardier CSeries are certified. The PW1400G-JM engine for the Irkut MC-21 aircraft, the PW1200G engine for the Mitsubishi Regional Jet and the PW1900G for the Embraer E190-E2 are all in testing. The PW1100G-JM began powering revenue flights in January 2016. V2500 ENGINE. The V2500 engine is designed and manufactured by International Aero Engines, a global partnership of aerospace leaders including Pratt & Whitney, Japanese Aero Engine Corporation and MTU Aero Engines. International Aero Engines brings advantages in technical excellence and manufacturing expertise, with a reputation of producing the engine of choice for the Airbus A320 family. 22 • SP’S AIRBUZ • Issue 4 • 2017

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V2500 engines offer the most advanced technologies in the 22,000- to 33,000-pound thrust range with lowest overall emissions in its class. GP7200 ENGINE. The GP7200 is derived from two of the most successful wide body engine programmes in aviation history. The Engine Alliance, a 50/50 joint venture between General Electric Aviation and Pratt & Whitney, was established in 1996 to develop, manufacture, sell and support a family of advanced technology engines for new high-capacity, long-range aircraft. The result is the GP7200, a twin spool axial flow turbofan that delivers 70,000 pounds of thrust for the Airbus A380. The GP7200 is derived from the PW4000 and GE90 families. The engine benefits from each programmes’ latest proven technologies and incorporates lessons learned from more than 25 million flight hours of safe operation on both engines. The GP7200 entered service in 2008 with the world’s largest A380 fleet, Emirates. The first GP7200-powered A380 was delivered to Air France in 2009. Since entering service, the GP7200 has achieved a 99.9 per cent departure reliability rating without experiencing a single in-flight shutdown. PW4000-94 ENGINE. The PW4000 94-inch fan engine is the first model in the PW4000 family of high-thrust engines. It covers a range of 52,000 to 62,000 pounds of thrust and has five major aircraft applications. Approved for 180-minute Extended-range Twin-engine Operations (ETOPS), the engine provides airlines with excellent operational flexibility and high reliability. Advanced, service-proven technologies, such as single-crystal superalloy materials and its Full-Authority Digital Electronic Control (FADEC), contribute to superior fuel economy and reliability. The engine’s benefits are further enhanced by excellent performance retention, long on-wing times and low maintenance costs. The PW4000’s noise and emissions parameters are lower than levels required for all current and anticipated emissions and noise regulations. For a further reduction in emissions, Pratt & Whitney’s TALON (Technology for Advanced Low NOx) combustor technology is now available for the PW4000. Since entering revenue service in 1987, Pratt & Whitney has delivered more than 2,500 PW400094” engines that have collectively logged more than 120 million dependable flight hours on commercial aircraft around the world. PW4000-100 ENGINE. Pratt & Whitney has taken its successful PW4000 100-inch engine for the Airbus A330 to new heights with the introduction of the PW4170 Advantage70 programme. The Advantage70 is offered as a new engine and as an upgrade kit for existing engines. It delivers superior engine performance, including a two per cent thrust increase, over one per cent reduction in fuel consumption, increased durability, and reduced maintenance costs. Developed specifically for the Airbus A330 twinjet and introduced in 1994, the PW4000 100-inch fan engine has thrust capability from 64,500 to 70,000 pounds at take-off. The engine was the first in aviation history to qualify for ETOPS prior to entering service. It is now approved for 180-minute ETOPS. Pratt & Whitney supplies A330 customers the entire propulsion system – engine, nacelle, thrust reverser and accessories. This, along with superb service reliability, excellent performance retention and low cost of ownership, make the PW4000 100-inch engine an outstanding value. PW4000-112 ENGINE. The PW4000 112-inch engine, an ultra-high-thrust model covering the 74,000 to 90,000 pound-

Engines

P&W

PHOTOGRAPH: pw.utc.com

Airbus A380 aircraft, which is seen at the last year’s Farnborough Airshow, is powered by has four GP7200 engines from Engine Alliance (EA), a joint venture between GE Aviation and Pratt & Whitney

thrust class, is the reliability, experience and ETOPS leader for the 777 aircraft, providing the best customer value. The engine’s advanced, service-proven technologies including single-crystal super alloy materials, powdered metal disks, and FADEC, provide excellent operational performance and durability. These features contribute to the engine’s excellent environmental performance, which meets with margin all current noise and emissions regulations. The PW4000 112-inch engine retains the outstanding accessibility and component modularity of other PW4000 family members to reduce maintenance time and cost. For transportability, the engine can be shipped in a 747F aircraft as a complete engine.

JT8D ENGINE. Pratt & Whitney introduced the JT8D to commercial aviation in 1964 with the inaugural flight of Boeing’s 727100 aircraft. The JT8D engine has proven itself to be a highly durable and reliable engine, having completed more than 673 million dependable flying hours since entering service. Once deemed the workhorse of the industry, more than 14,750 JT8D engines have flown. Today, there are 2,400 engines still in use. Pratt & Whitney has developed a new low-emissions combustion system, or E-Kit, that is FAR 25-certified to ensure the JT8D200 engine stays current with environmental regulations. The E-Kit reduces JT8D-200 engine NOx emissions by 25 per cent and exceeds all ICAO standards for new production engines.

PW6000 ENGINE. The PW6000 engine covers the 18,000- to 24,000-pound thrust class and is targeted for 100-passenger aircraft. The PW6000 is currently offered on the Airbus A318, which is part of the successful A320 aircraft family. The PW6000 builds on proven technology from other Pratt & Whitney advanced engine programmes to deliver the lowest cost of ownership for 100-passenger aircraft operators. Pratt & Whitney has incorporated technological advances in the PW6000 that enable a reduction in parts count for lower acquisition cost as well as a reduced maintenance cost. The PW6000 meets all current and anticipated noise and environmental regulations. For airlines contemplating the future acquisition of new 100-passenger aircraft, the PW6000 is an excellent choice as it was specifically designed for high-cycle operation in the demanding short-haul aircraft market. The PW6000 meets the challenges of low cost, clean, quiet, reliable, and durable power for airline customers.

JT9D ENGINE. Pratt & Whitney’s JT9D engine opened a new era in commercial aviation: the high-bypass-ratio engine to power wide-bodied aircraft. Since entering service on the Boeing 747 aircraft in 1970, the JT9D engine has proven itself to be the workhorse for early 747, 767, A300, A310 and DC-10 aircraft models with more than 3,200 cumulative engines delivered. The JT9D engine family consists of three distinct series. The JT9D-7 engine covers the 46,300- to 50,000-pound-thrust range, and the JT9D-7Q series has a 53,000 pound thrust rating. Later models, the -7R4 series, cover the 48,000- to 56,000-poundthrust range. For JT9D-7R4 twinjet installations, the engines are approved for 180-minute ETOPS. Pratt & Whitney’s array of engines have benefitted airlines substantially and this makes the UTC company a leader who understands the needs of the commercial aviation business which is highly volatile, affected by fuel prices and other factors. SP SP’S AIRBUZ • Issue 4 • 2017 • 23

technology

connectivity

Staying Connected Honeywell is betting big on an estimated $7 billion market opportunity globally in ‘Connected Aircraft’ business offering services that cost much less than in-flight entertainment today. On board the avionics maker’s Boeing 757 test aircraft, we experience blazing fast Internet that could be a game changer in the airline market. by Rohit Goel onboard the Honeywell Connected Aircraft

PHOTOGRAPH: Honeywell

oneywell International, brought in a ‘connected aircraft’, a Boeing 757, for the first time to India to showcase their connected aircraft technologies and services which can help airlines to reduce fuel consumption, maintenance cost and provide high-seed Wi-Fi on board. Pilots will be able to avoid clear air turbulence thanks to realtime weather information, while passengers can download movies at least as quickly as they can at home, all thanks to Honeywell’s Connected Aircraft concept. Estimating the market for connected aircraft to be $7 billion globally and that there would be rapid adoption of such technologies, Honeywell forecasts that by 2025, an estimated 25,000 planes will be equipped with Wi-Fi with consumer demand making airlines invest in such technologies. A ‘connected’ aircraft can reduce fuel cost and emission by 5 per cent, can receive, transmit, analyse and share data enabling more informed decision-making, help reduce operational costs and offer an improved flying experience. Honeywell estimates that flight delays worldwide cost airlines about $25 billion and a grounded commercial jet, while being worked on, can cost up to 24 • SP’S AIRBUZ • Issue 4 • 2017

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$10,000 an hour. A connected aircraft can help avoid all that, the company said. The amount of data generated by a flight is breathtaking. “A single twin-engine aircraft can generate up to 844TB of data from 12h of flight, which is approximately 27,000 32GB iPhone 7s,” Honeywell says. An Airbus A380 is fitted with as many as 25,000 sensors. Leveraging new technology and much more reliable high-speed Wi-Fi connections, the Connected Aircraft connects an airplane’s components and equipment, enabling each to immediately send, receive and analyze data thereby improving fleet management, flight safety, passenger experience, maintenance, flight operations, aircraft turnaround time and costs. The GoDirect Flight Preview application gives pilots a highly accurate, three-dimensional preview of the runway and surrounding terrain before they take off to enable preparation for difficult or unusual approaches. This technology gives pilots confidence to land at new airports and optimize route selection for faster, safer and more efficient flights. Adjusting to the right flightpath using GoDirect Fuel Efficiency software reduces the amount of fuel pilots use as it collects, monitors and analyses data to help operators optimise fuel efficiency and select the most fuel-effi-

technology

connectivity

Connected aircraft

cient flightpaths. With GoDirect Connected Maintenance, airlines can be more efficient and predictive in the way they maintain their fleets. They proactively troubleshoot mechanical issues to avoid aircraft downtime. On board the connected aircraft, GoDirect Weather gives pilots real-time weather data on the flightpath, allowing them to plan the safest, most efficient routes possible. A new connected radar function will provide crowd sourced weather information from other aircraft in the sky and share that information through an app, giving an accurate view of the weather around the world. Also, the aircraft can provide 10 to 100 times faster Wi-Fi speeds while ensuring a secure communication link to and from the aircraft. Passengers will get on-board internet at speeds that will be as good, if not better than at home with speeds in excess of 30mbps. The system, called JetWave has seamless global broadband access to the Inmarsat GX satellites. You can download your movies from your seat and no longer have to do it before you board. With more than 1,000 deliveries to date, Honeywell is advancing in-flight Wi-Fi around the globe. Leading global airlines have adopted the technology, namely, Lufthansa Group, Singapore Airlines, Qatar Airways, Vietnam Airlines, Air Caraibes, Air New Zealand, Sri Lankan Airlines, Ethiopian Airlines, Norwegian Air Shuttle and Air Astana. The connected aircraft using big data, analytics and secure communications technology can now better anticipate opportunities ensuring smooth experience for passengers while aircraft technicians can get to know what parts of the aircraft need repair before the flight arrives, helping in faster turnaround times. The BENEFITS OF CONNECTED Aircraft. Fleet Management l Reduces fuel costs and emissions by up to 5 per cent

l l

Reduces operational disruptions by up to 35 per cent Cut down Inoperative Equipment by up to 86 per cent

Passenger Experience Provides 10-100X faster Wi-Fi speeds l Offers high speed connection with fewer drops l Facilitates smoother and safer flights l

Flight Operations Cuts the cost of network disruption l Saves up to 5% in flight time with ATC priority l Improves arrival times and dispatch speed l

Ground Operations Reduces “grounded” time l Avoids costly hazards l Cuts troubleshooting time by up to 25 per cent Access to high-speed connectivity has the potential to bring about a revolution in aircraft operations unlocking critical data like weather information, engine usage, maintenance reporting and more that can be better shared and analyzed to help operators improve efficiency and reduce costs. Enhanced passenger experience on the plane would be an added benefit. Reiterating Honeywell’s commitment to India, Neelu Khatri, President, Aerospace, Honeywell India said “As one of the world technology leaders in reliable, global and high-speed connectivity solutions, Honeywell supports the local authority’s vision for India’s airlines to offer in-flight Wi-Fi on all flights. Honeywell is dedicated to government initiatives such as ‘Make in India’ and ‘Regional Connectivity Scheme’, and our focus on developing strategic relationships and investments in high-growth regions supports India’s growing aerospace and defence industries”. SP l

SP’S AIRBUZ • Issue 4 • 2017 • 25

Interview

Honeywell

One-on-one

“The importance that we give to the India market is very, very high!” Connectivity is all about efficiency and productivity and it can be used by major airlines, the smaller airlines, the business and corporate aviation, even defence aircraft. Honeywell International, brought in a ‘connected aircraft’, a Boeing 757, for the first time to India to showcase their connected aircraft technologies and services. In an interview, Neelu Khatri, President Aerospace, Honeywell India, talks to Rohit Goel of SP’s AirBuz about Honeywell’s connected solutions for the Indian market.

PHOTOGRAPHs: Honeywell

Honeywell’s Boeing 757 Connected Aircraft

SP’s AirBuz (SP’s): Talking about on-board connectivity, has there been any kind of research that Honeywell has conducted to identify the demand? Neelu Khatri (Khatri): This is a great market for us. Only when we see a great need in the market, do we start taking up the R&D activities. Overall, we are looking at $7 billion in ‘connected’ theme, a portion of which is Wi-Fi connectivity. 26 • SP’S AIRBUZ • Issue 4 • 2017

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SP’s: What kind of time, money and effort has gone into the development of this solution? Khatri: It has been on for many years. The solution came out of Honeywell in the last 4-5 years but the development phase is much longer in the aerospace world. SP’s: And, what is the current status?

Interview

Honeywell

On-board the ‘Connected’ aircraft, the range of connected solutions from Honeywell is showcased

Khatri: Globally, Lufthansa airline is using it. Singapore Airline is another that is using it. We are in talks with many airlines including LCCs across the world. We have conducted this two-day demo flight in Mumbai and Delhi. We flew with the clients and there is immense interest coming up both from Government, private airlines, full-service, defence, etc. We had a lot of attendees both from the Ministry of Defence and the Ministry of Civil Aviation. SP’s: What about permissions and clearances from various regulatory bodies? Do you already have them in place? Khatri: As far as the policy is concerned, the ministries are dealing with the regulatory body that is working on it. As and when we are called in, we give our inputs. As far as the certification, on the products are concerned, we have it. Some things we don’t have, that would come up as and when the regulatory go ahead is given in India. The important part is that we are ready and are extremely excited to be coming up in India. This is the first time our connected aircraft actually came to India. For Honeywell, India is a high-growth region. So we wait for the nod from the Government. As and when it comes, we will be ready.

PHOTOGRAPH: Rohit Goel / SP Guide Pubns

SP’s: Are you offering this only to commercial airlines or business and corporate aviation as well? Khatri: Connectivity is all about better maintenance, saving costs, better Wi-Fi connectivity onboard and it can be used by major airlines, the smaller airlines, the business and corporate aviation, even defence aircraft. It is all about efficiency and productivity. SP’s: What will it take for a commercial airline to convert its aircraft into Wi-Fi e nabled? Khatri: The existing aircraft will have to go in for a retrofit. For the newer aircraft on order and most of the airlines in India have gone in for huge orders, it means to add as and when they receive it, it gets fitted in. Cost will depend upon the solution that the airline wants. There are various kinds of solutions that are available and the cost depends upon it. SP’s: Will it involve a reduction in number of passenger seats?

Khatri: No, the solution will not take any seats away. It is a solution that gets fitted on the roof of the aircraft and gets connected with the aircraft. All the passengers need to do is to bring their own device, go to the settings and get it connected. SP’s: Will this not lead to noise pollution in a confined space? What do you think about it? Khatri: No. The solutions, before it comes up in the market, before we launch it, there are every scenarios that are tested on these solutions. There are years of R&D that happens. We are very comfortable that there is no impact on the quality and effectiveness of the solution irrespective of the number of passengers onboard the aircraft. SP’s: Should there be any regulation or protocol governing the use of in-flight connectivity by the passengers? Khatri: I think it is more about discipline. If you travel in the US and Europe, there is Wi-Fi connectivity available on aircraft, even on local trains. There is some kind of a disciplinary guidance that most of these providers give to the passengers. If we are able to do that, I don’t see any problem. It is more about discipline which I am sure that the airlines will also give out those guidelines. SP’s: What kind of a price point would a passenger be willing to pay for Wi-Fi onboard? Khatri: That is up to the airlines to do the research and talk about. It is really not for us to say. We are there with the technology, with different types of solutions that we can offer to the needs that the airlines come up with – what kind of range, what kind of bandwidth, how many people, that is up to us. Pricing is definitely decided by the airlines. SP’s: So what are your expectations from the Indian market? Khatri: For us, it is a big potential. We call India as our highgrowth region. All eyes, both from domestic leadership to global leadership are on India. We know that these are exciting times in terms of fleet expansion, fleet acquisitions, more number of tails flying, the regional connectivity scheme emerging out in India. The importance that we give from Honeywell to the India market which is our high-growth region is very, very high! SP SP’S AIRBUZ • Issue 4 • 2017 • 27

show Report

Paris Air Show 2017 Star of the Show: Embraer displayed its E195-E2 as a hunter, the Profit Hunter at the show. The display which was quite a unique depiction of the aircraft ability, received spectacular attention from the show visitors.

photograph: Embraer

Show Bills $150 Billion Deals Continuing on this winning note, the organisers announced that the 53rd International Paris-Le Bourget Air Show, the world’s biggest aerospace fair, will be held from June 17-23, 2019 by R. Chandrakanth 28 • SP’S AIRBUZ • Issue 4 • 2017

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Show Report

Paris Air Show 2017

hough the number of visitors to the iconic air show of the world at Le Bourget Air Show, better known as Paris Air Show, saw an eight per cent drop, what grabbed headlines were the astounding deals that were struck, totaling over $150 billion. There were 897 orders and purchasing commitments for a catalogue value of $115 billion for a total of 934 commercial aircraft setting a new record for orders. The Chairman and CEO of Paris Air Show, Emeric d’Arcimoles, declared “This 52nd Paris — Le Bourget Air Show was a remarkable success with a record number of exhibitors and $150 billion worth of orders announced, despite the slight drop in the number of visitors. The impressive demonstration flights of Dassault Aviation’s Falcon 8X, the presentations of the A380 by the French aerobatic demonstration team, the Patrouille de France, the Airbus A3501000 and A400M and other aircraft delighted the French President as well as the public from the first to the last day of the show.” While the organisers stated that it was a success for innovation, they also gave out encouraging numbers: Exhibitors - 2381 exhibitors (three per cent more than in 2015) from 48 countries (the same as in 2015); trade visitors-1,42,000 (six per cent fewer than in 2015); general public-1,80,000 visitors (ten per cent fewer than in 2015). The slight drop in the number of trade visitors can be ascribed to a number of exhibitors’ budget restrictions. The drop in general public attendance may be explained partly by the heightened security measures and the heat wave, the statement said. There were 27 national pavilions and 140 aircraft on display, both static and aerial.These included the Airbus A321neo, Airbus A350-1000, Boeing B787-10, Boeing B737 MAX 9, Mitsubishi MRJ90, at Le Bourget for the first time. Dassault Aviation’s Falcon 8X, the Airbus A380 and A400M, the Airbus Tiger and NH90 Caiman helicopters were popular with the public. There were 290 official delegations from 98 countries and seven international organisations, including 160 official defence delegations from 86 countries and four organisations (NATO, the UN, OCCAR and the EU).

will sharpen the company’s focus and accelerate its capabilities expansion. Boeing Global Services announced multi-year services agreements valued at $6 billion during the Show. The announcements included: Commercial Services: UPS ordered three 767 Boeing Converted Freighters; Monarch selected Boeing’s Global Fleet Care ( formerly GoldCare) and flight training services for its entire 737 MAX fleet and Norwegian selected Boeing to provide all its flight training requirements across its Boeing fleet. Government Services: Rolls-Royce reached a parts and sales distribution agreement with Aviall for support of its global fleet of AE defence engines; the Indian Navy chose Boeing to support its fleet of P-8I maritime patrol aircraft and the US Defence Logistics Agency signed a contract with Boeing to support its F-15 fleet. Airplane Development Vice President Michael Delaney laid out the deliberate, disciplined and driven approach Boeing Commercial Airplanes is following with execution on the MAX, 78710 and 777X development programmes and the study of how to optimally address the middle of the market in the next decade. Looking further into the future Product Development Vice President Mike Sinnett explored the possibilities for advancing autonomous technology to help enhance safety, decision-making and traffic management in the face of continued projected growth in air transportation. Boeing also announced the launch of Boeing AnalytX, which has brought together more than 800 analytics experts from across the company focused on transforming data into actionable insights and customer solutions. Five customer agreements were announced to provide solutions powered by Boeing AnalytX. The Boeing 737 MAX 9 starred in the daily flying display while the 787-10 Dreamliner, P-8A, V-22, AH-64 Apache and CH-47 Chinook were featured in the static display.

Airbus Notches Up Nearly $40 Billion Business. Providing strong evidence that the commercial aircraft market remains healthy, Airbus announced $39.7 billion worth of new business during the 2017 Paris Air Show. The company won commitments for a total of 326 aircraft, including firm orders for Big Boys Make Noise. Delegations apart, Paris Air Show 144 worth $18.5 billion and MoUs for 182 aircraft worth $21.2 billion. is a battleground for many airframers. For the aviation compa- A320 Family aircraft sales and commitments were robust, with businies, Paris continues to be a good hunting ground, particularly for ness accounting for a total of 306 aircraft worth $33.8 billion. This the big two players – Airbus and Boeing – who rattle their sabres total comprises 132 firm orders worth $14.7 billion, and MoUs for 174 here, besides Embraer, Bombardier and other emerging players aircraft worth 19.1 billion. In the Wide-body segment, Airbus won from China, Japan, knocking on their doors. business for 20 aircraft worth $5.9 billion, comprising 12 firm orders worth $3.6 billion and MoUs for eight aircraft worth 2.3 billion. Boeing Takes Commanding Lead over Rival. John Leahy, Chief Operating Officer Customers, Airbus ComBoeing strengthened its market position with important announce- mercial Aircraft said: “Our commercial success this week at Paris ments and multi-billion dollar orders and commitments for com- extends our already diversified order backlog to a new industry mercial airplanes and commercial and defence services at the Show. record of over 6,800 aircraft, with 326 orders worth $40 billion.” The company launched the 737 MAX 10, the newest member of the Further to the new orders, the show also saw a repeat order from 737 MAX family, with more than 361 orders and commitments from DHL Express for four more A330-300 Passenger-to-Freighter con16 customers worldwide. This wide market acceptance endorsed the versions, in partnership with EFW and ST Aerospace. 737 MAX 10 as the industry’s most efficient and profitable single-aisle Airbus not only marked a solid sales tally but also extended its airplane. Commercial customers announced incremental orders and value offering at both ends of its commercial product portfolio. In commitments during the week for a total of 571 Boeing airplanes, val- the Single-Aisle family, Airbus decided to offer the Airspace Cabin ued at $74.6 billion at list prices. brand which, on the A320, includes the biggest overhead bin in its Boeing revealed its 2017 Current Market Outlook, raising its class. For the A380, Airbus has increased revenue-earning poten20-year outlook to more than 41,000 new airplanes, valued at $6.1 tial with even better fuel efficiency, thanks to enhanced large trillion. Boeing also forecasts significant growth in the Aerospace winglets, greater cabin capacity and a new higher take-off weight Services Market, projecting $2.6 trillion demand in commercial capability to increase its payload-range. and government services for the next ten years. Boeing confirmed In addition, Airbus week launched a new open aviation data its new Global Services business remains on track to be up and platform called Skywise to support the digital transformation of running next month. Standing up a global services business the industry and add value for our customers’ operations. Skywise SP’S AIRBUZ • Issue 4 • 2017 • 29

Show Report

Paris Air Show 2017

combines Airbus’ aerospace expertise with advanced data analytics solution provided by Palantir Technologies.

photographs: Airbus, ATR

Embraer’s ‘Profit Hunter’ Gets Attention. Among the debutants here was the Embraer E195-E2, the newest member of the Brazilian firm’s family of regional jets. John Slattery, President & CEO of Embraer Commercial Aviation, said that it’s the biggest plane Embraer has ever built and he expects airlines will recognise its value. “It is very cheap to operate, it is very light and we believe airlines will be able to generate extra revenue and that’s why we’ve called it the profit hunter.” Embraer’s E195-E2 made its first international appearance in Paris decked out in a Golden Eagle livery to drive home the point that it is a ‘profit hunter’. “We’ve extended it by three rows and we’ve improved the range by 600 nautical miles to 2,600.” Slattery was confident that the new offering would steadily add to its 70-strong existing customer base. “We are going to introduce new customers to the Embraer E-jet family. There will be low-cost carriers as well as traditional flag carriers, so we are broadening our operational franchise.” “We have a broad franchise footprint in continental Europe and North America which account for most of our business. We expect to see sales of about 6,500 units over the next 20 years,” said Slattery. The E2 family of aircraft are powered by Pratt & Whitney’s PW1900G and use cockpit technology from Honeywell Aerospace. The E195-E2 which can be configured to 144 seats, is expected to enter service in 2019. At the Show, Japan’s Fuji Dream Airlines ordered up to six E175s which is included in Embraer’s 2017 second quarter backlog. Besides, FDA has also extended the agreement for Embraer’s Flight Hour Programme (Pool) for up to eight years. Similarly, Japan Airlines made an order for an addition E190 following one year of E190 operations in Japan. AIR currently operates seven E190s and 17 E170s – 24 E-Jets in total, with an additional eight E-Jets on backlog. KLM Cityhopper ordered two additional E190s which will join the existing 30 E190s and nine E175s flying with KLM Cityhopper. Deliveries for the newly ordered aircraft are scheduled for 2018. When KLM Cityhopper’s move to an all Embraer fleet is complete, the airline will have 49 E-Jets, the largest E-Jet fleet in Europe consisting of 32 E190s and 17 E175s. The national carrier of Belarus, Belavia acquired two additional E-Jets: one E175 and one E195. The aircraft will join the four Embraer jets already operated by Belavia — two E195s and two E175s. The acquisition is an essential part of Belavia’s fleet renewal initiative, a core priority in the airline’s business strategy. Embraer also announced firm orders and commitments for the E2 family from two undisclosed customers. These consist of ten E195-E2’s, with an additional ten purchase rights for the E190-E2. Also, according to the latest Market Outlook, Embraer projects a steady market demand for 6,400 new jets in the 70-130+ seat capacity category (2,280 units in the 70-90 seat segment and 4,120 units in the 90-130+ seat segment), worth $300 billion, by 2036. The 70-130+ seat jet world fleet-in-service

Airbus not only marked a solid sales tally but also extended its value offering at both ends of its commercial product portfolio

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(Top) Double-deck, wide-body, four-engine jet Airbus A380 and a321 on display at the show; (Above) Earlier this year, ATR signed a deal for 50 ATR 72-600 with the indian carrier IndiGo

will increase from 2,700 aircraft in 2016 to 6,710 by 2036, the fastest growing segment among all aircraft seat capacities. Market growth will drive 63 per cent of total demand and the remaining 37 per cent will be delivered to replace ageing aircraft Demonstrating the company’s unique position within the commercial, defence and executive aircraft markets, three Embraer aircraft were at the Show. This was Embraer’s largest presence at a major air show bringing together a static display that showcased the new E195-E2, the largest member of the second generation of Embraer’s family of commercial jets, the multimission transport and aerial refueling aircraft KC-390 and the state-of-the-art mid-light business jet Legacy 450, a remarkable union of technology and design aircraft that flies faster and farther than any other jets in its class. The acclaimed runway legend ERJ 145 was also on static display. ATR Begins 2017 on a Good Note. ATR has received commitments for the purchase of 89 aircraft and options for 20 additional ones since the beginning of the year. These commercial results have enabled the regional turboprop manufacturer to achieve, in less than six months, a book-to-bill ratio in excess of one.

Show Report

Paris Air Show 2017

our aircraft provide the best solution at the lower risks. Regional communities in China, India, Iran or Senegal are about to experience what the brand new ATR -600s can bring not only in terms of passenger comfort, but also in terms of business development” Pratt & Whitney Gets Extended Range Eligibility. Pratt & Whitney announced the grant of 180-minute Extended Range Operations (ETOPS) eligibility for its PurePower PW w-JM engine by the European Aviation Safety Agency. “This is a significant milestone for both the Pratt & Whitney team and the PurePower engine family. This 180 minute ETOPs classification is the maximum required in its class,” said Chris Calio, President, Pratt & Whitney Commercial Engines. The US Federal Aviation Administration had approved ETOPs for the engine in December 2016. ETOPS certification sets the maximum allowed amount of single-engine flying time that an aircraft can be from the nearest suitable airport. The PW1100G-JM engine powers the A320neo.

PHOTOGRAPHs: parisairshow.tv, ASDS Media

(Top) Boeing 737 MAX 9 on the display; (Above) Mitsubishi Regional Jet (MRJ) FTA -3 was on static display at Le Bourget Airport, Paris

At the Paris Air Show, ATR announced new deals that will enable both ATR 42-600s and ATR 72-600s to develop new markets in China and Africa in particular. It announced two additional orders: one ATR 72-600 from Sweden’s BRA, which brings the airlines’ ATR 72-600 fleet to ten aircraft and one ATR 72-600 from Air Tahiti, a long-standing partner that has been operating ATRs for three decades. In total, five new deals were announced. Earlier this year, ATR signed a deal for 50 ATR 72-600s with the Indian carrier IndiGo, along with orders for 20 ATR 72-600s and 20 options with Iran’s national flag carrier, Iran Air. Since January, five customers have purchased ATRs for the first time, thus further strengthening ATR’s leading position and attractiveness among carriers operating in the regional sector. The 89 orders booked since the beginning of the year are valued at over $2.3 billion. As of today, ATR has a backlog of over 250 aircraft, corresponding to production for about three years. Christian Scherer, Chief Executive Officer of ATR, declared: “The level of sales we have booked in less than six months reflects a positive evolution in the market and that the ATR aircraft are the optimal choice to open new routes at the lowest operating costs for airlines. No matter where there is potential for regional connectivity,

Bombardier Signs Up SpiceJet. Bombardier Commercial Aircraft has signed a letter of intent (LOI) with Indian low-cost carrier SpiceJet for up to 50 Q400 turboprop airliners. The LOI includes 25 Q400 turboprops and purchase rights on an additional 25 aircraft. Based on the Q400 turboprop list prices, the order could be valued at $ 1.7 billion. “When finalised, the repeat order will increase the Q400 aircraft fleet in the fastgrowing market in the Asia-Pacific region and will launch the high-density 86-passenger model of the Q400 aircraft in India,” said Fred Cromer, President, Bombardier Commercial Aircraft. “This is also compelling evidence that the demand for turboprop aircraft is healthy in short-to medium-haul markets that can’t economically support jets that are more expensive to operate.” “SpiceJet operates India’s largest regional fleet and is the only organised operator in this space,” said Ajay Singh, Chairman and Managing Director, SpiceJet. “The acquisition will help us further increase connectivity to smaller towns and cities and help realise Prime Minister Narendra Modi’s vision of ensuring that every Indian can fly.” “The Q400 is the largest turboprop aircraft available on the market and the 86-seat configuration will support SpiceJet develop its domestic operations from Tier-2 and Tier-3 cities across India,” said François Cognard, Vice President, Sales, SouthAsia and Australasia. Since 2010, SpiceJet has taken delivery of 15 Q400 aircraft. The airline currently operates 20 Q400 aircraft in a 78-seat configuration to domestic and international destination. MRJ Debut. Mitsubishi Heavy Industries (MHI) and Mitsubishi Aircraft Corporation brought the third Flight Test Aircraft (FTA-3) of the Mitsubishi Regional Jet (MRJ) to Le Bourget Airport and the new generation regional transport was on static display. This was the first trip to Europe for the MRJ. The aircraft conducted the ferry flight to Paris from Moses Lake via Winnipeg and Goose Bay, Canada and Keflavik, Iceland. FTA-3 is in the livery of launch customer All Nippon Airways Co, Ltd (ANA). “I can’t think of a finer stage on which to present this highly anticipated next-generation aircraft. The European debut of the aircraft is another sign of the progress of this programme,” said Shunichi Miyanaga, President and CEO, Mitsubishi Heavy Industries. Yes, Paris is a fine stage for aviation companies. Despite the fewer footfalls, the organisers were exuberant as the deals made all the difference. Continuing on this winning note, they announced that the 53rd International Paris — Le Bourget Air Show, the world’s biggest aerospace fair, will be held from June 17-23, 2019. SP SP’S AIRBUZ • Issue 4 • 2017 • 31

Finally

The Malaise Within In its report in which the CAG has held the Ministry of Civil Aviation responsible for the financial loss, the government auditor has finally managed to bell the cat!

ILLUSTRATION: Anoop Kamath

report in the Indian media in the recent past indicated that the Comptroller and Auditor General of India (CAG), has pulled up the Ministry of Civil Aviation for failure on its part to adopt appropriate measures to recover dues of `9.19 crore from Kingfisher Airlines when it was still operating. The figure of `9.19 is indeed paltry when viewed in the context of the sum the former Chairman of Kingfisher Airlines owes to the consortium of Indian banks which is $1.4 billion or in the region of `9,000 crore. This is nearly a thousand times the amount the defunct Kingfisher Airlines set up by the now fugitive business tycoon Vijay Mallya owes to Indian banks and the government. And with the passage of time, the dues will only grow on account of interest that will continue to accumulate on the original amount owed to the two agencies. In fact the sum owed to the Ministry of Civil Aviation (MoCA) has grown to `17.44 crore as of end March 2016. Vijay Mallya, son of Vittal Mallya took over as Chairman of United Breweries Group in 1983 after the demise of his father. Since then, the Group has grown into a multinational conglomerate of over 60 companies. In 2005, when there was a boom in the Indian civil aviation industry, Vijay Mallya launched the glamorous Kingfisher Airlines, named after the major alcoholic drink produced by the company. Unfortunately, owing fundamentally to flawed financial management and somewhat unwarranted extravagance, this new business venture collapsed and the Airline had to be closed down in September 2012 leaving a huge financial liability on the company and on Vijay Mallya personally. As a result of this mess, Vijay Mallya has landed up on the wrong side of the law. He has been accused of being a “wilful defaulter” under the Indian legal system and is facing charges of money laundering and misappropriation. Despite being armed with a huge legal machinery, the government appears to be at a loss as to what would be an effective road map for recovering the humongous sums owed by Vijay Mallya to the banks in India. In the case of sum owed by Kingfisher Airlines to MoCA, even if the amount involved 32 • SP’S AIRBUZ • Issue 4 • 2017

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is relatively much less, there has been complete laxity in control and management of the system of collecting dues from private operators. This case in point pertains to three agencies that were involved in this exercise namely Kingfisher Airlines who was the operator of air services, the Bangalore International Airport Limited (BIAL), the company responsible for running the International Airport at Devanhalli, Bengaluru, now renamed as Kempegowda International Airport (KIA) and MoCA representing the government. It was the responsibility of Kingfisher Airlines to collect Passenger Service Fee (PSF) as part of the ticket sold to the passenger. Thereafter, it was the responsibility of BIAL to collect the PSF periodically from the Kingfisher Airlines and deposit it with the concerned department of MoCA. Owing to the total financial mess, Kingfisher Airlines had landed in, it had discontinued transferring PSF to BIAL. The latter in turn failed to take any steps to ensure that Kingfisher Airlines fulfilled its obligation. The net result was that the financial liability on Kingfisher Airlines continued to mount and BIAL failed to take appropriate measures to recover dues from the airline, possibly on account of the high profile of its owner. As a result, the MoCA was the loser. Instead of taking steps to recover the dues from Kingfisher Airlines, in March 2014, BIAL approached the MoCA with a proposal to write off the dues recoverable from the airline. MoCA was obviously in no position to accede to this request as it would be an undue favour to the defaulter and condoning of failure of BIAL to fulfil their financial responsibility. What is even more strange is the fact that MoCA was fully aware of the fact that Kingfisher Airlines was in default of timely remittance of PSF, but did not direct the airport operating agency to collect or remit the dues or initiate any other action in the matter. In its latest report on the subject in which the CAG has held MoCA responsible for the financial loss, the government auditor has finally managed to bell the cat! SP — B.K. Pandey

“In a country like India with limited support from the industry and market, initiating 50 years ago (in 1964) publishing magazines relating to Army, Navy and Aviation sectors without any interruption is a commendable job on the part of SP Guide “ Publications. By this, SP Guide Publications has established the fact that continuing quality work in any field would result in success.” Narendra Modi, Hon’ble Prime Minister of India (*message received in 2014)