Issuu

Finally: A New Dawn for General Aviation p8

Building A Sustainable Future p 10

Operating on Thin Long Routes p 28

AIRBUZ

December 2017-January 2018

`100.00 (India-based Buyer Only) Volume 10 • issue 6 www.spsairbuz.com

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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ATR 72-6 27.166 00 m (89’ 1.5”) 27.05 m Max paylo (88’ 9”) ad (at typic 7.65 m al in-se Max fuel (25’ 1”) rvice OEW load 61 m 2 (657 ) AIRFIELD sq.ft) 7,500 kg PERFOR / 16,534 70 seats MANCE Take-off lb at 30” pitch 5,000 kg distance / 11,023 Basic (MT lb OW - ISA PW127M - SL) Option (MTOW 2,475 SHP - ISA - SL) TOW for 1,333 m 300 Nm / 4,373 2,750 SHP (Max pax TOW for ft - ISA - SL) 1,367 m 300 Nm / 4,485 - Max pax 2,500 SHP Take-off ft - 3,000 ft 1,175 m speed (V2 ISA / 3,855 2,192 SHP min @ MTO +10 Landing ft 1,410 m W) distance / 4,626 2,132 SHP (FAR25) ft Basic (MLW 116 KCA - SL) S At LW (Max pax 22,800 + reser Reference kg / 50,26 ves - SL) 1,067 m speed at 5 lb / 3,501 23,000 landing En-route ft kg / 50,70 1,008 m perform 5 lb / 3,307 22,350 ance Optimum ft kg / 49,27 113 KIAS climb spee 2 lb 20,800 d Rate kg / 45,85 of climb 5 lb (ISA, SL, 21,000 Max cruis MTOW) kg / 46,29 170 KCA 6 lb Optimum e speed (95% S 13,311 MTOW kg - 29,34 FL) 1,355 ft/m - ISA 6 lb 13,500 in Fuel flow kg / 29,76 at cruis 275 KTA 2 lb e speed Range with 510 km/hS / max pax (70 seats 762 kg/h ) / 1,680 lb/h 825 Nm

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table of contents

round up 2017 / photo feature P12 2017: a good year

P18 commercial aviation / middle east Challenges on the Horizon for Mid East Commercial Aviation P22 show review / dubai airshow 2017 Big 2 Share Spoils, Bell Tolls for the A380

P8 general aviation / seaplane Finally: A New Dawn for General Aviation P10 environment / oem Building A Sustainable Future

P26 show review / dubai airshow 2017 “We expect to sell about 370 aircraft in the Middle East”

John Slattery, President & CEO, — Embraer Commercial aviation

P28 regional aviation / connectivity operating on thin long routes

FINALLY: A NEW DAWN FOR GENERAL AVIATION P8

BUILDING A SUSTAINABLE FUTURE P 10

OPERATING ON THIN LONG ROUTES P 28

AIRBUZ

DECEMBER 2017-JANUARY 2018

`100.00 (INDIA-BASED BUYER ONLY) VOLUME 10 • ISSUE 6 WWW.SPSAIRBUZ.COM

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Global aviation sector continued its good run in 2017. With economic growth across the board worldwide, lower transport costs and improved connectivity, this year proved to be yet another successful year for the airlines and the aviation industry in general.

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major event on the global civil aviation scene in the recent past was the Dubai Airshow 2107 held in the second week of November 2017. A report on this event from Dubai by Bikram Vohra says that the event marked a 175 per cent surge in the value of deals concluded compared to the show in 2015, which saw only $39.8 billion in agreements. The Airshow was dominated by Boeing as Emirates placed orders for 40 Boeing 787-10 Dreamliners valued at $15.1 billion. Boeing secured a total commitment for 302 aircraft including 50 options with a value of about $50.7 billion. However, while Boeing had the lead, Airbus that was lagging behind initially, caught up with an order for 430 single-aisle Airbus A320neo airliners valued at nearly $50 billion. Analysing commercial aviation in the Middle East, Bikram Vohra is of the view that there are challenges for the Middle East airline industry. The carriers of the Middle East nations have made colossal investments in wide-body airliners, but rather unfortunately, profits have dropped by around ten per cent. Some of the carriers are finding it difficult to break even. Solution to their problems may lie in inducting airliners of smaller size such as the latest E2 regional jets from Embraer. Year 2017 was a good year for the global civil aviation sector with continued growth across the board. Included in this issue is a photo feature show casing the highlights of 2017. Having delivered its 1,400th airliner, an E175 regional jet, to Envoy Air, part of the American Airlines Group, the Brazilian aerospace major is riding high in the global market. Talking about the aims and objectives of the company, Mariana Luz, the Global Head of Sustainability and CSR at Embraer, says “Building a sustainable future is one of Embraer’s core values. As a company that has, over its 48 year history, delivered more than 8,000 aircraft, Embraer takes into account the full impact of the development of new product based on each stage of the product’s life cycle”. In an effort to decongest the six major hub airports in the country, the Ministry of Civil Aviation (MoCA) is advocating direct air connectivity between cities so as to bypass the hub airports and help reduce traffic density through hub airports. These routes connecting cities located far apart have been described by the MoCA as “Thin Long Routes” on which the volume of passenger traffic may not be high enough to generate remunerative passenger load factors. The airlines would need to operate aircraft with long range, but seating capacity lower than that of the Airbus A320 and the Boeing 737 family of airliners. A report on operating on “Thin Long Routes” is a part of this issue. In the regime of regional aviation, China Express, the first private regional airline in China became the newest operator of CFM International’s CFM56 engines when it took delivery of the first of 11 CFM56-5B-powered Airbus A320ceo aircraft. With this induction, and the remaining Airbus A320 to be delivered in 2018 and 2019, the airline has embarked on an expansion drive. A report by R. Chandrakanth figures in this issue of SP’s AirBuz. All this and more in this issue of SP’s AirBuz. We wish our readers a “Happy New Year” and look forward to a prosperous 2018. Welcome aboard and wish you happy landings!

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A pp l i e d f o r 2 • SP’S AIRBUZ • Issue 6 • 2017

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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

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( AIRLINE NEWS FIRST ATR 72-600 FOR INDIGO AIRLINES

Low-cost carrier IndiGo has taken delivery of the first of its 50 ATR 72-600 against an order that could run into $1.3 billion at list prices. The airline has plans to use these ATR aircraft to operate to small airports under the Regional Connectivity Scheme, UDAN. The airline now expects to add seven more ATR 72-600 aircraft by March 2018 to meet the growing demand on its existing routes as also further boost its operations under regional aviation and substantially expand its footprint. Last month, IndiGo had said that it plans to further strengthen its regional operations with over 90 new flight connections that include routes to and from Tirupati, Rajahmundry, Hyderabad, Chennai, Bengaluru, Mangaluru, Madurai and Nagpur. ATR Chief Executive Officer, Christian Scherer said, “ IndiGo’s choice highlights the airline’s commitment to offering passengers only the very best at the lowest cost possible. India’s rapidly expanding domestic market represented close to 100 million passengers last year and has been steadily growing by more than 20 percent annually. As the country is expected to become the world’s third largest market by 2020, we are proud of playing a key role in such an expansion of the air connectivity.” Aditya Ghosh, President, IndiGo said,“ We are excited at the opportunity of once again being able to redefine air travel in India by bringing the reliability and efficiency of IndiGo’s operations to towns and regions in our country which so far have been devoid of reliable air service or have been subject to exorbitant air fares”.

Royal Air Maroc selects GEnx engines to power Boeing 787

Royal Air Maroc (RAM) chose the GEnx-1B engine to power its two additional Boeing 787 Dreamliners. This order brings the airline’s GEnx-powered 787 Dreamliner fleet to seven aircraft. The engine order is

valued at more than $100 million (USD) list price. “RAM’s order for additional GEnx-1B engines demonstrates the airline’s confidence and trust in the engine,” said Chaker Chahrour, vice president and general manager of Global Sales and Marketing for GE Aviation. “GE Aviation and RAM have forged a strong relationship, and we are very proud to provide the engine power for the airline’s growth plans.” More than 1,600 GEnx-1B engines have been sold to more than 50 customers. Compared to GE’s CF6 engine, the GEnx engine offers up to 15 percent better fuel efficiency, which translates to 15 percent less CO2. The GEnx’s innovative twin-annular pre-swirl (TAPS) combustor dramatically reduces NOx gases as much as 55 percent below today’s regulatory limits and other regulated gases as much as 90 percent. Based on the ratio of decibels to pounds of thrust, the GEnx is the quietest engine GE produces due to the large, more efficient fan blades that operate at slower tip speed, resulting in about 40 percent lower noise levels. GEnx’s revenue-sharing participants are IHI Corporation of Japan, Volvo Aero of Sweden, MTU of Germany, TechSpace Aero (Safran) of Belgium, Safran Aircraft Engines of France and Samsung Techwin of Korea.

LARGE ORDER FOR BOEING 737 MAX BY FLYDUBAI

Low-cost carrier of the Middle East, flydubai, has placed an order valued at $27 billion at list prices with Boeing for 225 Boeing 737 MAX airliners. This represents the largest order for single-aisle airliners ever placed by an airline from the Middle East. The agreement includes a firm order for 175 Boeing 737 MAX airliners with an option for another 50. The initial order of 175 aircraft will be made up of Boeing 737 MAX 8 and 9 as also 50 Boeing 737 MAX 10. The flydubai order was originally expected to have been split between Boeing and Airbus.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman, flydubai said “We welcome the continuation of our long partnership with Boeing. Their airplanes have provided a foundation for the success of our business model, giving us the operational flexibility and range to build a network of 95 destinations in 44 countries”. Kevin McAllister, President and CEO, Boeing Commercial Airplanes stated, “We are extremely honoured that flydubai has opted to be an all-Boeing operator for many years to come. This record-breaking agreement builds on our strong partnership with flydubai and the other leading carriers of this region. With the proven business model of flydubai and the ambitious growth plans of the airline, we look forward to hundreds of Boeing 737 MAX airliners with flydubai connecting Dubai with the rest of the world.”

STRATEGIC DISINVESTMENT OF AIR INDIA

With the plan for strategic disinvestment of Air India gathering momentum, Minister of State for Civil Aviation, Jayant Sinha said that Air India’s domestic and international operations would be sold together and hence bids are being sought accordingly. “What we will be offering through the bidding process is the integrated airline, which means both domestic and international operations together,” the Minister of State said. He went on to explain that IndiGo had sent a formal letter expressing interest in the airline’s international operations while some other players had shown interest in ground handling. However, he said the Ministry has not received any formal letter from the Tata Group. He said the Group of Ministers is in the process of identifying which subsidiaries of Air India should be offered separately. “Even if they are offered separately, if you want to bid for each one of them and reintegrate them, we are providing flexibility,” he said. In June 2017, the Union Cabinet had given “in-principle” approvalfor the strategic disinvestment of debt-ridden Air India and had tasked a Group of Ministers to work out its modalities. SP’S AIRBUZ • Issue 6 • 2017 • 3

NewsBriefs

Events Calendar Singapore Airshow 2018

6–11 February Changi Exhibition Centre, Singapore www.singaporeairshow.com

HAI HELI-EXPO

26 February–1 March Las Vegas Convention Centre, Las Vegas, NV, USA http://heliexpo.rotor.org

Wings India 2018

sector times on 4,500nm routes, most of which will be flown over water. The partnership with JAL includes an investment of $10 million in Boom, which is particularly significant, says Blake Scholl, founder and CEO of the start-up aerospace company formerly known as Boom Technology. “This is the first time in history an airline has put real cash into a supersonic transport aircraft programme and to us it is a commitment and a demonstration that the customer interest is real,” he said.

8–11 March Begumpet Airport, Hyderabad, India www.wings-india.in

( AIRLINE FINANCE

NBAA: International Operators Conference

REDUCTION IN NET PROFITS OF JET AIRWAYS IN Q2

26–29 March Las Vegas, NV, USA www.nbaa.org/events/ioc/2018

SUPERSONIC AIRLINERS FOR JAPAN AIRLINES

Japan Airlines ( JAL) has entered into a strategic partnership with Boom Supersonic, the Mach 2-plus airliner developer and has placed purchase options for up to 20 aircraft. The Japanese flag carrier becomes the second airline after Virgin Atlantic to reveal its support of the Denver-based supersonic airliner project, which is targeting entry into service in the mid-2020s. Together with the ten options announced by Virgin in mid-2017, the JAL commitment represents almost half of the 76 options received by Boom to date. Three additional operators for the remaining 46 aircraft remain unidentified. The Boom concept is targeting supersonic travel at current business-class prices by bringing together a 55-seat design using structures, advanced aerodynamics and propulsion technology that was not available in the 1960s for the development of the Anglo-French Concorde, the world’s first operationally successful supersonic airliner. The deltawinged Boom trijet design is intended to rely on a ten percent higher speed than Concorde to achieve high use and shorter 4 • SP’S AIRBUZ • Issue 6 • 2017

Jet Airways has reported a 91 per cent year-on-year fall in net profit for the quarter ended September 30, 2017, on account of higher expenses and a decline in other incomes. The private carrier’s net profit on a stand-alone basis stood at `49.6 crore, as against `549 crore in the same quarter last year. Its revenue from operations grew a modest three percent to `5,626 crore, but a 58 per cent decline in other incomes led to the sharp fall in profit. In the second quarter of 2016-17, the airline had posted a profit of `190 crore from the sale and lease of aircraft as other income, which fell to zero in Q2 during the financial year 2017-18. Foreign currency fluctuation loss and impairment loss of `56.57 crore on account of loans to its subsidiary JetLite, also contributed to the decline in profitability. The airline’s profit came below Bloomberg estimates, which had pegged it at `99 crore. Jet’s performance is in contrast to its listed peers IndiGo and SpiceJet, which saw fourfold and 79 per cent rise, respectively, in their net profit. Vinay Dube, Chief Executive Officer, Jet Airways, said, “Weak demand in the Gulf continues, while low fares as well as yields in the domestic market have limited the ability to offset the increase in fuel prices. In line with our commitment to offer guests a superior experience, we continue to grow

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our domestic presence while keeping a tight control on costs.”

HIGH PROFITS BY INDIGO

India’s largest domestic carrier, IndiGo Airlines reported results for the second quarter of the fiscal year 2017-2018 that surpassed expectations. IndiGo has always been well positioned to capitalise on market growth. Financial performance was driven by market growth, better yield management and also a strong focus on cost control. Interestingly, the second quarter is traditionally a weak quarter for airlines. Most airlines tend to schedule their maintenance in this quarter to reduce capacity. This was the case for IndiGo as well and the weakness is seen in the comparative analysis with the previous quarter. The higher yields in the second quarter indicate that more people are flying and the aviation growth story of India remains strong. IndiGo confirmed that all its NEO aircraft are now flying and the total fleet as of the end of the quarter consisted of 141 aircraft including 24 NEOs. The more fuelefficient A320neo’s constitute 17 percent of the IndiGo fleet and this is providing the airline a positive effect on fuel burn and its resultant costs. For the quarter, engine manufacturer Pratt & Whitney also provided compensation. While exact details of the compensation are not disclosed, IndiGo confirms that the compensation related to NEO groundings, delivery delays and also loss of profitability due to delayed induction, has been received. Additionally, IndiGo only confirmed that the compensation received was included both in revenue and cost items. Estimates indicate that this compensation was in the range of 150 to 200 crore for the quarter.

( REGIONAL AVIATION AIRPORTS TO BE FUNCTIONAL UNDER UDAN

Speaking on the occasion of the inauguration of the upgraded Hubballi Airport, P. Ashok Gajapathi Raju, Minister for Civil Aviation said that a total of 88 airports in the country would be made functional in the next one and a half years, through two rounds of bidding under the UDAN regional connectivity scheme. So far, only 71 airports in the country were conducting regular flight operations till the UDAN scheme was launched. “During the second bidding under the UDAN scheme, we are looking

More uptime, less downtime. More ﬂights, more revenue. That’s great for business. Utilization deﬁned. www.cfmaeroengines.com CFM International is a 50/50 joint company between GE and Safran Aircraft Engines

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at getting air connectivity from Hubballi to Mumbai, Chennai, Pune, Kannur, Hyderabad, Kochi, Goa, Tirupati, Delhi and other places,” he said. Civil aviation would get a boost if the state governments keep their taxes on fuel and other materials within reasonable limits. Unfortunately, the trend is that the state governments hand over only loss-making airports to the Centre, he said. “Amphibious aircraft (seaplane) service is also being launched in the country. This has great potential as the country has 7,500 km of coastline and a number of reservoirs,” the Minister said. India, at present, stands in the third position in terms of growth in the civil aviation sector, mainly due to the increasing number of domestic passengers. Gajapathi Raju also inaugurated the new terminal and flagged off Air India’s A319 aircraft service (tri-weekly) on the BengaluruHubballi-Mumbai route.

FINANCIAL ISSUES AHEAD FOR UDAN

With more routes set to be operational in the near future under UDAN after the second round of bidding, the Ministry of Civil Aviation (MoCA) is likely to face problems in providing Viability Gap Funding (VGF) to participating airlines. To connect unserved and under-served airports as well as make flying more affordable for the masses, the MoCA launched the Regional Connectivity Scheme (RCS) dubbed as UDAN, and as many as 128 routes connecting 70 airports were awarded in the first round of bidding. In the second round of bidding, a total of 141 proposals have been received from various players. These are being processed and the final allocations the results of which are expected to be announced in the near future. In the year 2018, all the airports in the first round are be operational. As the number or airlines operating flights under the RCS, will increase progressively and hopefully, rapidly, the MoCA is apprehensive that the funds available at its disposal may not be adequate to fulfil the commitment of providing VGF. The MoCA contributes 80 per cent of the VGF liability and the remaining 20 per cent is provided by the state governments concerned. In the case of North Eastern states and Union Territories, the sharing ratio is 90:10. To meet with the obligation of VGF, the MoCA is levying `5,000 per flight on key routes and proceeds from this route are estimated to be around `200 crore annually. So far, the MoCA has collected around Rs 70 crore by way of levy for VGF. 6 • SP’S AIRBUZ • Issue 6 • 2017

( INFRASTRUCTURE NEW INTERNATIONAL AIRPORT IN ODISHA

In view of the rapidly growing air traffic in the country and the limitations in the capacity expansion of the existing Biju Patnaik International Airport, Bhubaneswar, the Airports Authority of India (AAI) has proposed a new Greenfield international airport in Odisha. This is considered essential to handle the anticipated surge in air traffic through the existing airport. The airport was accorded international status in 2013. However, there is practically no scope for expansion of the existing runway which is just 2742 metres long and hence is unable to accommodate wide-body airliners such as the Boeing 747 and the Boeing 777. The airport is capable of operating both by day and night. The AAI has asked the state government to identify suitable land for the development of the new facility. The approximate land requirement for the new project is around 1,500 to 2,000 acres. The preferred location is in the vicinity of the capital city of Bhubaneswar, preferably within 30km. The new airport is proposed to be established under the public-private partnership (PPP) model. This would be the airport for the future, catering to the traffic requirement of the state for the next 15 to 20 years and possibly beyond. To enhance international operations, the state government had already reduced value-added tax (VAT) on aviation turbine fuel to zero for direct international flights from the state. However, despite this concession, the international airport has not proved to be attractive to airlines for international operations. AirAsia is currently the only one operating international flights.

EXPANSION OF CAPACITY AT DELHI AIRPORT The GMR group plans to invest `16,000 crore for the expansion of Delhi Airport that will double the capacity of domestic terminal T1, increase the capacity of international terminal T3, lay a new runway and build a new terminal over the next seven years. Despite being approved by the government,

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the plan was delayed due to resistance from airlines. “Significant growth in the operation of low-cost carriers translated into exponential growth of passenger traffic for the airport,” said I Prabhakara Rao, Chief Executive Officer of Delhi International Airport Limited (DIAL). Terminal T1, that has the capacity to handle 20 million passengers a year, will see its capacity double to 40 million passengers by 2021. After the expansion, a new terminal, T4, will be built to cater for the domestic operations of fullservice carriers. As part of the renovations at T1, IndiGo, SpiceJet and GoAir have been asked to shift operations to Terminal 2. “We have fully refurbished T2, which now has the capacity to handle 12 million passengers a year. We have asked the airlines to shift one-third of their operations to T2. After the renovation we will shift the airlines back to T1,” Rao said. IndiGo, SpiceJet, and GoAir have order books that will see their combined fleet size cross 800 aircraft in the next few years. Simultaneously, the operator will lay a fourth runway parallel to the third. The integrated domestic terminal will also get a new metro station as part of Delhi Metro’s Phase 3 expansion plan. T3 is already connected to the city through the Airport Express Metro. “This will make Delhi Airport the first in the world to have separate metro stations for all its terminals,” Rao said.

THIRD RUNWAY FOR KEMPEGOWDA INTERNATIONAL AIRPORT

While Kempegowda International Airport (KIA) at Bengaluru has undertaken the construction of the second runway which is expected to be operational by September 2019, plans are afoot for the third runway. Currently, the airport has a 4,000-metre long runway with CAT-1 Instrument Landing System (ILS). Dubbed the ‘New South Parallel Runway (NSPR),’ the second runway too will be 4,000 metres long, but with an enhanced CAT-III ILS. This will minimise fog-related flight disruptions which has become a somewhat frequent occurrence. Infrastructure major Larsen and Toubro (L&T) has been awarded a `1,358-crore contract by the Bangalore International Airport Limited (BIAL) to build the second runway at KIA. Apart from the construction of a New South Parallel Runway ie the second runway, the contract includes building apron and associated works. Now a third runway dubbed as the New North Parallel Runway (NNPR), 1,500 metres North of the existing runway, is on the agenda of the KIA in anticipation of

NewsBriefs

appointment AIR INDIA

Pradeep Singh Kharola, Managing Director, Bangalore Metropolitan Transport Corporation, has been appointed as the Chairman and Managing Director of Air India.

AIRASIA BERHAD

On December 13, 2017, Board of Directors of AirAsia unanimously approved senior leadership changes as under, in line with the AirAsia Group’s new digitalisation strategy : • Aireen Omar, the current CEO of AirAsia Berhad, will be promoted to Deputy Group CEO – Digital, Transformation, Corporate Services. • Captain Adrian Jenkins, current Group Director, Flight Operations as Chief Operations Officer. • Rozman Omar, current Deputy Group CEO, Strategy and MNA as the Executive Director of AirAsia International Limited.

annual air passenger traffic to growth to 65 million in the future. The state government had been urged to acquire a strip of land required just for the operation of the third runway. This was to be connected via a cross field taxiway system to the main terminal facilities. There are two villages at the proposed location, with large habitation, water bodies and forest land. The proposed area for the third runway falls way outside the airport’s boundary. This may create serious impediments for the project.

NEW TECHNOLOGY FACILITY BY BOEING AT BENGALURU The State High Level Clearance Committee (SHLCC), headed by Chief Minister of Karnataka Siddaramaiah, approved the proposal by Boeing India Private Limited to invest `1,152 crore to set up an engineering and technology facility with electronics, avionics manufacturing and assembly spread over 36 acres at the Aerospace Park in Bengaluru. The total investment including that by the state would be in the region of `3,427 crore which have potential to create 2,595 jobs. Among the other proposals, the Committee approved `740 crore investment proposal of CDC Development India Pvt Ltd for setting up a technology innovation international park, `1,010 crore investment by the Indian Coast Guard which has proposed to set up a training centre at Baikampady industrial area in Mangaluru.

• Riad Asmat as the CEO of AirAsia Berhad, effective January 10, 2018.

BOMBARDIER

Bombardier Inc has appointed Diane Giard to its Board of Directors, effective December 12, 2017.

TURBINE SERVICES & SOLUTIONS GROUP (TS&S)

Mansoor Janahi has been appointed Deputy Chief Executive Officer of TS&S, a specialised solutions, maintenance, repair and overhaul (MRO) provider for aircraft and industrial engines.

UNITED TECHNOLOGIES CORPORATION (UTC) UTC has announced the appointment of Paul Eremenko as Senior Vice President and Chief Technology Officer, effective January 1, 2018.

( TECHNOLOGY AIRBUS E-FAN X ELECTRIC AIRPLANE

Electric cars and buses are making their presence felt around the world, but developing and building a viable all-electric airplane, is entirely another kettle of fish. Nevertheless, that has not stopped Airbus, Rolls-Royce, and Siemens from teaming up to build one. The E-Fan X project involves gradually replacing gas turbines of the British Aerospace 146 with a pair of electric motors capable of generating a megawatt of power each. The British Aerospace 146 is a short-haul airliner primarily used for domestic flights in various countries. Airbus Chief Technology Officer, Paul Eremenko, said in a statement: “The E-Fan X is an important next step in our goal of making electric flight a reality in the foreseeable future. The lessons we learned from a long history of electric flight demonstrators, starting with the

Cri-Cri, including the e-Genius, E-Star, and culminating most recently with the E-Fan 1.2, as well as the fruits of the E-Aircraft Systems House collaboration with Siemens, will pave the way to a hybrid single-aisle commercial aircraft that is safe, efficient, and cost-effective. We see hybrid-electric propulsion as a compelling technology for the future of aviation.” Each of the three companies involved in the project will be responsible for a separate part of it. Airbus is overseeing the overall integration of the new electric power units and batteries into the aircraft, as well as taking responsibility for their integration with the aircraft’s flight controls.

( REGULATORY AFFAIRS DRAFT TO REGULATE DRONES UNVEILED

Amid a growth in drone use in the country, the government has unveiled draft regulations for operating drones for civilian purposes that includes the no-go zones and security registration process. According to the draft Civil Aviation Regulation (CAR), Unmanned Aircraft Systems (UAS), commonly known as drones, are categorised into five based on their weight - from those weighing less than 250 grams to those above 150 kg. The draft regulations say drones weighing over 250 grams would require security clearance and obtain unique identification numbers. Drones above two kg should obtain operators permit as well. Those operating should also have the remote pilot licence. While a decision on approval for drone weighing less than two kg will come within two days, that above two kg would take a maximum of seven days. Drones cannot operate within 50 kilometres from the International Border and Line of Control with Pakistan, Line of Actual Control with China and Actual Ground Position Line (AGPL) in Siachen. One cannot also fly it within five km radius from Vijay Chowk, in Delhi, from where Parliament House, Rashtrapati Bhavan and North and South Blocs are a stone’s throw away and within 500m radius from strategic locations notified by the Ministry of Home Affairs and military installations. Drone launching from mobile platforms such as a moving vehicle, ship or aircraft is not allowed. Prior permission is required to fly drones over eco-sensitive zones around national parks and wildlife sanctuaries. SP SP’S AIRBUZ • Issue 6 • 2017 • 7

General Aviation

SeaPlane

Finally: A New Dawn for General Aviation Rekindling Hope: Prime Minister Narendra Modi Before Boarding the Kodiak 100 Seaplane in Ahmedabad

by B.K. Pandey

PHOTOGRAPH: Twitter

n December 12, 2017, the last day of the second and final phase of campaign related to the assembly elections in the state of Gujarat, Prime Minister Narendra Modi flew in a seaplane, the Kodiak 100, from Sabarmati river in Ahmedabad to Dharoi Dam in Mehsana district. The Kodiak 100, a product from the Quest Aircraft Company of the United States, is a small high-wing transport aircraft that is capable of carrying up to 15 persons and is powered by a single Pratt & Whitney Canada PT6A 34 750 hp engine. Not only did this flight by the Prime Minister aboard a singleengine aircraft raise concerns among the agencies responsible for his security, it also generated a minor political storm, something that appears to have become a matter of routine and an integral part of the political machinations by the opposition. While the flight by the Prime Minister on board a seaplane was projected as a part of the development agenda of the government in power, for the Indian civil aviation industry, it has rekindled hopes of imparting a fresh impetus to the Regional Connectivity Scheme (RCS) or UDAN that has been an area of major focus of the NDA Government. Use of seaplanes can open up a new and vibrant segment for regional aviation and consequently provide it the much needed boost. While there are plans to progressively commission hundreds of new low-cost airports to enhance connectivity across the nation and bring affordable air travel to the masses and thereby boost economic growth, the potential of seaplane services in the country has so far remained unexploited. The nation including the island territories, has 21,000 km of waterways which consist of 7,500 km of coastline and 14,000 km of inland waterways by way of major rivers. Apart from these, there are around 200 lakes across the country. There is therefore immense scope for the rapid expansion of seaplane services to boost RCS without the need for heavy investments that would be required for building and maintaining runways. 8 • SP’S AIRBUZ • Issue 6 • 2017

With the patronage by the central government for the launch of seaplane services, the general aviation segment of the Indian civil aviation industry will finally witness a new dawn!

www.spsairbuz.com

Efforts in the past to exploit this segment of the Indian civil aviation industry have, for one reason or another, not met with success. In January 2011, for the first time in India, seaplane services were launched by Maritime Energy Heli Air Services Pvt Ltd (MEHAIR) in the Andaman and Nicobar Islands to primarily support the tourism industry, but closed down after three years. MEHAIR also planned to launch similar operations in Maharashtra and Goa as well, but never took off. Kerala Seaplane, a commercial seaplane service promoted by Kerala Tourism Infrastructure Limited, was launched on June 2, 2013, at Kollam with the inaugural flight being operated by Kairali Aviation. However, commercial operations could not commence due to opposition from the local fishing community. In 2014, a seaplane service was launched to connect Mumbai to tourist destinations in the Western Ghats, providing an alternative to four or five hour long drives on the Mumbai-Pune expressway. However that service did not find a market as it failed to draw clientele. However, things are now set to change. All initiatives in the past to exploit this segment of the civil aviation industry were undertaken and supported locally without the involvement of the government at the centre. There is now a paradigm shift as is evident from a statement by Nitin Gadkari, Minister for Shipping, who said, “All players are welcome to enter the market once the gates are opened. We will formulate a policy for this in three months. It has been a dream that I have nurtured. Conversion of rivers into waterways and the availability of of lakes and dams that can be converted into airports with minimal expenditure on small floating jetties.” Ashok Gajapathi Raju, Minister for Civil Aviation, termed the move as an extension of UDAN scheme. He said, “If all goes according to what we think we are capable of, in the third round of bidding for UDAN, these aircraft can also come in.” With the patronage by the central government for the launch of seaplane services, the general aviation segment of the Indian civil aviation industry will finally witness a new dawn! SP

Environment

OEM

Building A Sustainable Future Embraer believes that working together with multiple stakeholders and tackling environmental matters with an innovative approach is the only way forward to build a better and sustainable future for the next generations by Mariana Luz

PHOTOGRAPH: Embraer

ir connectivity, especially in Asia-Pacific, has grown exponentially over the years and with that, the growing emphasis on sustainability and the environment. Building a sustainable future is one of Embraer’s core values. As a company that has, over its 48-year history, delivered more than 8,000 aircraft, Embraer takes into account the full impact of the development of new product based on each stage of the product’s life cycle. The Integrated Development of Environmentally Sustainable Products (DIPAS) programme embeds design for the environment practices into Embraer aircrafts’ entire lifecycle, to improve environmental performance and minimise environmental harm. Embraer’s long-standing commitment to the environment and sustainability has seen the company listed on the Dow Jones Sustainability Index (DJSI), where the company has been listed for the eighth consecutive year (DJSI World Universe 2017/2018). Based on the analysis of several sustainability metrics, the DJSI lists companies that stand out for their economic, social and environmental performance. Embraer’s overall score was worth the second place in the aerospace and defence segment. Here are some concrete examples of Embraer’s emphasis on sustainability and the environment. The World’s First Ethanol-Fuelled Aircraft. Back in 2004, Embraer became the first manufacturer in the world to produce an aircraft entirely fuelled by ethanol when the crop duster Ipanema, an agricultural aircraft, took to the air in October of that year. Since then, the Company has 10 • SP’S AIRBUZ • Issue 6 • 2017

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continued its efforts in reducing the use of fossil fuels and in recent years has partnered with others to foster the development of biofuels. First Flight Tests with Bio-Kerosene. The first flight tests with bio-kerosene at Embraer were held in August 2011 in cooperation with GE. The companies conducted a series of experimental flights with an E170 jet to evaluate the operational characteristics of the aircraft and engine using a bio-kerosene derived from camelina plants, produced through the HEFA (Esters of Fatty Acids Hydro-processed) process. This was the first renewable kerosene approved for use in commercial aviation. Embraer also partnered with Azul Brazilian Airlines, Amyris, Inc and GE in demonstration flight using an innovative, renewable jet fuel produced from Brazilian sugarcane. Heading to Rio

Back in 2004, Embraer became the first manufacturer in the world to produce an aircraft entirely fuelled by ethanol when the crop duster Ipanema, an agricultural aircraft, took to the air in October of that year.

Environment

OEM

KLM launches new series of biofuel flights from Oslo to Amsterdam

DID YOU KNOW?

Brazil now has almost 100 per cent of its automobiles and trucks running also with bio-fuel – either pure or mixed with gas or diesel oil. With such expertise, it is only natural that the country plays a key role in developing bio-fuels

PHOTOGRAPH: KLM

de Janeiro Santos Dumont Airport, the Embraer E195 jet operated by Azul departed from Campinas Viracopos Airport and flew over Rio as part of the UN Conference for Sustainable Development (Rio+20) on 2012. The ITAKA Project on KLM’s Commercial Flights. In 2016, Embraer participated in the Initiative Towards Sustainable Kerosene for Aviation (ITAKA) project with KLM. This was the first initiative by Embraer in collaboration with an airline to test the use of aviation biofuels on regular flights. 80 biofuel flights from Oslo to Amsterdam operated with KLM’s E190 over a six-week period. During these flights, Embraer took measurements to gauge the efficiency of biofuel in comparison with kerosene. In fact, KLM has been increasing its fleet of E-Jets in line with the airline’s aim to further reduce CO2 emissions. The E175 and

E190s are significantly more fuel-efficient in comparison with the airlines’ ageing Fokker aircraft, thus fulfilling KLM’s aim to be more environmentally friendly. Enhancing the Fuel Efficiency of Our Aircraft – The E-Jets E2 For the E-Jets E2, Embraer invested on state-of-the-art engines, which, combined with new aerodynamically advanced wings, full fly-by-wire flight controls and improvements to other systems, will deliver significant reductions in fuel burn, emissions and external noise. The E2s, Embraer’s second generation of E-Jets, will have up to 24 per cent reductions in fuel consumption and emissions. Prior to that, in 2014, Embraer presented its E175 featuring a range of aerodynamic improvements that reduced fuel burn 6.4 per cent compared to the original version. Brazil has been in the forefront of bio-fuel development and now has almost 100 per cent of its automobiles and trucks running also with bio-fuel – either pure or mixed with gas or diesel oil. With such expertise, it is only natural for Embraer to play a relevant role also on biofuels for aviation. Finally, since 2012, Embraer has been a signatory party of the aerospace industry’s sustainability commitment that establishes two of the industry’s key goals: carbon neutral growth by 2020 and a 50 per cent reduction in net aviation CO2 emissions by 2050, considering 2005 levels. Working together with multiple stakeholders and tackling environmental matters with an innovative approach is the only way forward to build a better and sustainable future for the next generations. SP —The writer is Embraer’s Global Head of Sustainability and CSR SP’S AIRBUZ • Issue 6 • 2017 • 11

Round up 2017

Photo Feature

2017: a good year Global aviation sector continued its good run in 2017. With economic growth across the board worldwide, lower transport costs and improved connectivity, this year proved to be yet another successful year for the airlines and the aviation industry in general. Passenger traffic grew by 7 per cent and cargo by 9 per cent showing growth at a steady pace. While the two giants – Boeing and Airbus continued their battle to pick up substantial orders from across the globe, especially for their latest airplanes on offer, regional aircraft manufacturers like Embraer and COMAC also made significant inroads with airlines preferring to “right size” their fleets. Here is a snap-shot of the major aviation events during 2017.

Jan 2017

Boeing, SpiceJet Announce Deal for up to 205 Airplanes. Booked at the end of 2016, the announcement includes 100 new 737 MAX 8s, SpiceJet’s current order for 42 MAXs, 13 additional 737 MAXs which were previously attributed to an unidentified customer on Boeing’s Orders & Deliveries website, as well as purchase rights for 50 additional airplanes.

PHOTOGRAPHs: Boeing, Lockheed Martin

Lockheed Martin Rolls Out First LM-100J Super Hercules Commercial Freighter. Lockheed Martin officially introduced the world to the latest member of the C-130J Super Hercules family: the LM-100J commercial freighter. Lockheed Martin announced its intent to manufacture and market the LM-100J in February 2014.

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FEB 2017

Round up 2017

Photo Feature

Boeing Debuts 787-10 Dreamliner. The Boeing 787-10 Dreamliner, the third member of the 787 Dreamliner family, made its debut at Boeing South Carolina. The 787-10, built exclusively at Boeing South Carolina, will now be prepared for its first flight in the coming weeks. Boeing will deliver the 787-10 to airlines in 2018. The airplane has won 149 orders from nine customers across the globe.

Minister for Civil Aviation Dedicates First Integrated Heliport to the Nation. After inaugurating the facility at the Rohini Heliport in Delhi, the Minister for Civil Aviation Ashok Gajapathi Raju said that the heliport was an excellent infrastructure and added that the facility will keep the cost under control as MRO facility has been incorporated.

MAR 2017

PHOTOGRAPHs: Boeing, PIB, Airbus

Airbus A319neo takes to the skies. The first Airbus A319neo performed its maiden flight. The smallest member of the A320neo family, powered by CFM International LEAP-1A engines took off from Hamburg and landed in Toulouse after a 5 hour flight. The A319neo is the smallest member of the A320neo Family; it offers its operators superior short field performance in hot and high conditions. It can accommodate up to 160 passengers without compromise on the comfort.

Boeing Celebrates Rollout of First 737 MAX 9. Boeing marked a milestone as the first 737 MAX 9 made its debut in front of thousands of Boeing employees. The 737 MAX 9 is the second member of Boeing’s industry leading 737 MAX family, with a maximum capacity of 220 passengers and a range of 3,515 nm. The 737 MAX 9 is scheduled to enter service in 2018. SP’S AIRBUZ • Issue 6 • 2017 • 13

Round up 2017

Photo Feature

apr 2017

PM launches UDAN – Regional Connectivity Scheme for Civil Aviation. Prime Minister Narendra Modi launched UDAN – the Regional Connectivity Scheme for civil aviation, from Shimla Airport. Mentioning the scheme name – UDAN – Ude Desh Ka Aam Naagrik – he said that the new civil aviation policy marks an opportunity to cater to the aspirations of the people of India. He said Tier-II and Tier-III cities are becoming growth engines, and enhanced aviation connectivity between them will be beneficial.

C919, the first aircraft independently developed by China, commences its maiden flight in Shanghai Pudong International Airport successfully on May 5, 2017. C919 aircraft is the first single-aisle trunk liner developed by China completely in accordance with the airworthiness standards and the prevailing market standards. C919 aircraft is designed to be the most popular 150-seat single-aisle aircraft in the air transport market. The baseline version has a standard range of 4,075 km and an extended range of 5,555 km, with seats for 158 passengers in hybrid configuration and seats for 168 passengers in all economy-class configuration.

Paris Air Show showcases the ‘Profit Hunter’. 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. The Embraer E-195-E2, the newest member of the Brazilian firm’s family of regional jets and 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’.

President Ram Nath Kovind inaugurates the newly-built airport at Shirdi. This was followed by a commercial flight to Mumbai, operated by Alliance Air. The airport, located in Shirdi, has come as a major boon to the pilgrims. The aerodrome is owned and developed by Maharashtra Airport Development Company (MADC). Constructed at an investment of around `350 crore, including `50 crore from the Shri Saibaba Sansthan Trust, the airport, with a 2,500 metre-long runway, is capable of oct handling single narrow-body aircraft, such as Airbus A320 and Boeing 737s. 2017

PHOTOGRAPHs: PIB, COMAC, Twitter, Embraer

JUN 2017

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SP’S AIRBUZ • Issue 6 • 2017 • 15

Round up 2017

nov 2017

Photo Feature

Emirates welcome 100th A380 to its fleet. Emirates celebrate the milestone delivery of its 100th Airbus A380 aircraft at a special ceremony with Airbus. His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Emirates’ Chairman and Chief Executive officiated the ceremony. The Emirates A380 programme creates and supports manufacturing jobs across the global aircraft manufacturing supply chain. Airbus estimates that Emirates’ A380 orders alone support 41,000 direct, indirect and induced jobs in Europe, including some 14,500 in Germany alone. These are high-skilled jobs and impact a high-value supply chain, creating a significant multiplier effect in the countries where Airbus has aircraft production facilities.

PHOTOGRAPHs: Emirates, ATR, KLM

KLM Cityhopper welcomes newest Embraer 175+. KLM Cityhopper welcomed its latest Embraer 175+ at Amsterdam Airport Schiphol. This is KLC’s 11th E175+, bringing the total Embraer fleet to 41, which includes 30 E190s. KLC’s fleet now consists entirely of Embraer and currently has Europe’s largest Embraer fleet. At the end of 2018, the KLC fleet will include no fewer than 49 aircraft built by the Brazilian manufacturer.

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IndiGo takes delivery of its first ATR 72-600. The largest Indian carrier by market share will use its new fleet of ATR-600s to substantially expand its regional network. The airline and ATR announced earlier this year an agreement for the acquisition of 50 ATR 72-600s. This delivery represents a major step in the airline’s ambitious plan to further develop its fleet with the introduction of fuel-efficient and cost-effective ATR 72-600s.

Round up 2017

Photo Feature

Indigo Partners doubles existing A320neo Family order with commitment for additional 430 aircraft. Airbus, Indigo Partners’ four portfolio airlines have signed a MoU for the purchase by the four airlines of 430 additional A320neo Family aircraft. The aircraft will be allocated among the ultra low-cost airlines Frontier Airlines (United States), JetSMART (Chile), Volaris (Mexico) and Wizz Air (Hungary) upon the completion of final purchase agreements between Airbus and the four airlines. The 430-aircraft commitment, comprised of 273 A320neos and 157 A321neos worth $49.5 billion at list prices, Airbus’ largest single announcement ever.

Textron Aviation Unveils New Large-utility Turboprop, the Cessna SkyCourier. Textron Aviation announced its new twin-engine, high-wing, large-utility turboprop –the Cessna Sky Courier 408. FedEx Express, the world’s largest express transportation company and longtime Textron Aviation customer, has signed on as the launch customer for up to 100 aircraft, with an initial fleet order of 50 cargo aircraft and options for 50 more. Entry into service for the clean-sheet design Cessna SkyCourier is planned for 2020.

PHOTOGRAPHs: Airbus, Textron Aviation, Embraer

First A330-300P2F enters service with DHL. DHL Express has become the first operator to take delivery of the A330-300 Passenger-to-Freighter (P2F) converted aircraft from Elbe Flugzeugwerke (EFW), the joint venture between ST Aerospace and Airbus. DHL Express has firm orders for eight A330-300P2F units in total, with additional options to receive another 10. Embraer delivers 1,400th E-Jet to American Airlines. Embraer celebrates the delivery of its 1,400th E-Jet, an E175. American Airlines took delivery of this milestone aircraft and selected Envoy Air, a wholly owned subsidiary of American Airlines Group Inc., to operate the aircraft. Since American Airlines has been a customer of Embraer for nearly 20 years, subsidiary Envoy is one of the original ERJ operators and currently has over 100 ERJs in its fleet. —Compiled by Rohit Goel SP’S AIRBUZ • Issue 6 • 2017 • 17

Commercial Aviation

Middle East

The no frill service of LCCs has actually been comfortable enough to challenge the top carriers in obtaining passenger loyalty

PHOTOGRAPH: Boeing

Challenges on the Horizon for Mid East Commercial Aviation The Midas touch that once marked the frontline carriers of the Mid East and the Gulf still endures despite everything that has been thrown at them. The standard of service has been so high that others have not kept pace and cannot compete. But there is now a cross road approaching in which certain major decisions will have to be taken especially with regard to fleet mix and a new importance given to intra-regional routes and the sharing of technology and systems to be more cost effective rather than mired in overlap. These steps will keep the flag flying that much higher. by BIKRAM VOHRA, Dubai 18 • SP’S AIRBUZ • Issue 6 • 2017

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Commercial Aviation

Middle East

n embarrassment of riches come with its own problems. For the flag carriers of the Middle East the investment in larger aircraft for long range point to point flights and the desire to market themselves as hubs is now becoming a costly affair. With a drop of nearly 10 per cent in profits and the dubious breakeven point being increasingly elusive in the use of the available seat per kilometre (ASKs) capacity thanks to deploying larger single aisle aircraft on intra-regional routes, the situation is further exacerbated. Right Sizing the Fleets. When the Arab Air Carriers Organisation met in Dubai for their AGM they were apprised of some hard facts. While the fallout of the hot spots in the region were hurting there was a need to go back to the drawing board and re-examine the priorities in air travel if they were to stay viable. It seemed pretty clear that the draining of finances because of larger aircraft on internal under 120 minute routes had to stop. The need to fund smaller aircraft and increase frequency is now an imperative. It is exactly this consideration that has the Brazilian manufacturer Embraer pretty much excited over the potential sales of the E190-92 in this region. The aircraft comes in three sizes ranging from 75 to 150 seats and fits right into a slot where over 60 per cent of flights do not serve the regional market with even a daily service and half the scheduled operations show a carriage of less that 120 passengers. The need to open up intraregional routes and pairings with more flights will be the order of the day if the bruised bottom line is to heal. If this logic is applied then opening up town pairings could call for as many as 350 narrow bodies in the next fifteen years. Between the drop in oil prices, the over reach in investment in wide bodies impacted upon by the blowback from the troublespots and the neutralising effect of clustered airports, these have all caused a slowing down. Already we have seen Emirates slow down

on it’s a 380 fleet and literally place it on hold in favour of the 40 Boeing 787 Dreamliners. According to Airbus the fleet in this region will double to over 3,200 aircraft, over which 500 will replace phased aircraft and over 2,100 will augment the strength of the carriers. Qatar Airways which will be paying a huge price after the Emirate was ostracised by much of the region has still gone ahead with six more Triple sevens and now has a fleet of 200 aircraft but its profit margins are thinning by the day. Etihad has taken a quantum leap, going in for 87 Airbus and 56 Boeing aircraft, most of them twin aisles except for 36 A320neos. But its bill for bailing Alitalia and Air Berlin has hurt. These new planes and their size mix will underpin the strategic positioning of Etihad. According to its President and CEO James Hogan, the road ahead is clear. “We now have seven equity alliance partners reaching across the world and a business strategy that has seen us create the world’s leading airline. We have achieved all of this while reaching sustainable profitability. “These aircraft orders provide the next step in our long-term growth strategy. They are about meeting the needs of the next 10 years, and beyond, as we grow further and faster than ever before. EgyptAir is looking to refurbish its fleet and has elected to go in for smaller aircraft with the 737-800 as first choice. Chairman & CEO of EgyptAir Holding Company Safwat Musallam believes the future is bright in the regional sector and EgyptAir may also be the first to take on Embraer’s E190 and not show much interest in the large end of the size market. Saudia, meanwhile, is doing very well thank you on the domestic front and with the new winds of change and internal travel on the up certainly believes there is much scope for expansion at home. According to Director General Saleh bin Nasser Al Jasser, 15 Boeing B777-300ER, 13 Boeing B787 Dreamliners and 35 Airbus A320 and A321neo are on the anvil. Oman Air has just received its seventh Dreamliner and plans to expand further with investment in widebodies. It had phased out its ATR and Embraer fleets in 2015 and now depends on 737s to deliver on shorthauls.

PHOTOGRAPH: Embraer

EgyptAir may be the first to take on Embraer’s E190

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Commercial Aviation

Middle East

Oman Air has just received its seventh Dreamliner and plans to expand further with investment in widebodies

Sustaining Growth. And while European carriers may be licking their chops and hoping to pull in slack having seen the top carriers from this region create a first rate on board service with airport back up that has made it impossible for them to compete against them the fact is the current brake has not translated into cancellation. It is not likely to even as certain issues do need to be addressed. Boeing struck a more cheerful in its projections when it quoted AhmedJazzar, President Boeing Saudi-Arabia saying that it is ‘excited’ over Saudi Arabia’s “Vision 2030” plan and foresees growth at the expected rate. Also cargo operations seen unaffected across the board and actually indicate an upward trend. There is no reduction in freight tonnage. The presence of low-cost carriers like Air Arabia and flydubai and their meteoric rise has seen growth in the double digits and still rising. The no frill service has actually been comfortable enough to challenge the top carriers in obtaining passenger loyalty. In fact, if anything between the Asean region and the MidEast the global growth will emerge from these sectors and place more pressure on European carriers.

PHOTOGRAPH: Boeing

Challenges Ahead. Perhaps one of the less publicized but defining aspects is the fallout from this intense airport capacity often a few miles from each other. As air traffic management has not kept up with the increase in fleet sizes the result is intense congestion. Adding to this situation is the multiple Flight Information Regions, growing from one to six and causing delays in handing over flights, thereby often working at cross purposes. It becomes

The presence of low-cost carriers like Air Arabia and Flydubai and their meteoric rise has seen growth in the double digits and still rising

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imperative to promote a sense of oneness in the sky and end the overlap of air traffic control. Many experts have indicated a need to follow the European model and allow military airspace to be used for overflights when not being used by air force machines. This would also contribute to lessening costs of operations. The concern about the lopsided approach to routes is also valid. As high as 45 per cent of these routes are intra-regionals yet only 10 per cent of the flights operate on them. While traffic growth is still stable at a little over 8 per cent annually the surplus capacity and the often obvious competition between carriers in the Mid East thwart efforts to create a cohesive functional body that does not erode profit but enhances it. According to a study by Bombardier there is an imbalance between capacity and demand as a result of which while capacity continues to grow demand does not keep pace. This reduces yield even as paradoxically, capacity rises. What it boils down to in terms of future strategy and that means now is the right choice in size on the right route. A mismatch here can send an airline flying into the red. And the risk of flying into loss stokes another controversial area and that is the accusation and counter of protectionism. The Big Three have often been collared for protectionist policies and being funded by government. This confrontation has been ongoing and yet the European carriers themselves by restricting access to their main airports in a desire to give an edge to their airlines. Qatar Airway’s chief, Akbar Al Baker, has gone on record as saying, ‘If our growth is curtailed or our investments in airlines are compromised, the real damage will be to Europe in lost jobs, lost flight connectivity, lost investment in local and national economies and lost consumer choice’. But the EU is hitting back and collectively formulating new rules designed to clip Mid East carrier wings and these steps, decidedly hostile in intent, could hurt. Two years ago the Economist carried this statement: For all the talk of “open skies”, the aviation industry is and always has been riddled with protectionism and patronage, bail-outs and handouts. Is this now the time of reckoning and is there turbulence ahead? SP

Show Review

Dubai Airshow 2017

The 100th A380 delivered by Airbus to Dubai-based Emirates leads a formation of the Al Fursan aerobatic display team as an opening aerial presentation at Dubai Airshow 2017

Big 2 Share Spoils, Bell Tolls for the A380

PHOTOGRAPH: Airbus

For Airbus, the Dubai Air Show 2017 was an occasion to celebrate as it packaged a gift for sales chief John Leahy days before his retirement by Bikram Vohra, Dubai

rmed with their cheque books, Aviation’s faithful came to Dubai Air Show 2017 for the 15th aero exhibition and recorded deals worth $113.8 billion.According to data compiled by financial consultants Mubasher, the event which is held once every two years in Dubai, had logged an all-time record high of $206.1 billion in its 13th edition held in 2013, whereas the second record high at $155.5 billion was achieved in 2007. The event 22 • SP’S AIRBUZ • Issue 6 • 2017

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in 2017 marked a 175 per cent surge in the value of deals signed compared to the previous edition held in 2015, which saw only $39.8 billion in agreements. The first two days belonged to Boeing and it looked all but over for Airbus. Even their chalet was relatively silent and gloomy as the American manufacturer reeled in the orders. Emirates, as host carrier, set the pace by ticking the box for 40 Boeing 787-10 Dreamliners and this investment worth $15.1 billion, will replace the fleet of Boeing 777 as Emirates increases its frequency on

Show Review

Dubai Airshow 2017

Boeing 787-10 Dreamliner on static display

PHOTOGRAPH: Dubai Airshow

the under ten-hour routes. Any misgivings over the ability of the Dreamliner to perform at peak levels in the heat of the desert, were set aside and the Airbus A350 which still has residual affection and a better range and cost-per-passenger aggregate, fell by the wayside. As Airbus saw no more than the shadow of a smile on the opening day, there came the double whammy with flydubai, now a registered adjunct of Emirates, picking up a $27 billion deal to purchase 225 Boeing 737 MAX aircraft, with options to buy an additional 50. Airbus could by then, have packed its bags and skulked off, but wait, there was a major trick left in the bag and souring the bubbly at Boeing was on the cards. Hours later, even as media and the aviation industry was empathising over the mauling Airbus was getting, came the mega announcement. It was the biggest

Boeing said it secured total commitments for 302 aircraft including 50 options with a value of about $50.7 billion at list prices

deal in history and Indigo US was making it. Airbus gently and yet with a dash of soigné announced the securing of an order valued at nearly $50 billion for 430 planes from its single-aisle Airbus A320neo line. Suddenly the dimmed lights at Airbus went bright and life was good again. While the agreement added to the lure of Dubai as a leading venue for the bi-annual gathering and gave it a full chapter in modern aviation history, it also allowed Airbus to pump up a bottom line hurt badly by the loss of love for the Airbus A380. Actually it really is not a loss of love as much as it is a pragmatism reflected by Airbus having to guarantee Emirates ten-year production of the behemoth if there was any chance of getting Emirates to buy more aircraft. For the moment, despite the excitement, it was an in-house celebration for Airbus as it packaged a gift for sales chief John Leahy days before he flies into retirement. The pair of giants had shared the spoils again. One calls them a pair advisedly because they work it out so they end up with equal shares of the market. Of course what all this means is that the show is a success. The main stars have their lines right and everyone who is anyone, is engaged in an orgy of backslapping one another on a job well done. Many factors will kick in before the planes materialise in the skies with the livery of those who have gone in for them. As of now, the hard facts are that the bells you hear could well be the SP’S AIRBUZ • Issue 6 • 2017 • 23

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Dubai Airshow 2017

PHOTOGRAPHs: Dubai Airshow

Bombardier Global 6000 on display

death knell for the A380 production line. Airbus has to be sorely wounded by the loss of the A350 option to Emirates when they could have had a solid deal in the bag that would have cold compressed the A380 bruising. But without it, the scuttling of the double decker flagship is twice as hurtful. The $2 billion needed to extend the wings by 15 feet, improve the range, reduce the per passenger cost effectiveness by 13 per cent and make the aircraft viable to its best customer, is blowing in the wind because without other customers the sums do not add up. a And there is no one knocking on the door. The general belief now is that with Emirates hedging its bets and being frontal and transparent in its demands, Airbus will return to Toulouse in an ambivalent frame of mind, ready to make the cruel cut and mothball its A380 production line. The comfort from Indigo’s largesse is still in the MOU stage and not signed and sealed so there can be many changes to what Bill Franke at IndiGo Partners finally picks up for his carriers: Frontier Airlines, Volaris, Wizz Air Holdings and JetSmart, the last now operating out of Chile. It is a toss up how many of the 273 Airbus A320neo jets and 157 of the A321neo variant will finally be picked up and much will depend on the oil prices, peace in the region, liquidity in the carriers in the Middle East and how the projected need for 10,000 new aircraft across the size spectrum pans out with the flying public. It has to be remembered that Qatar is already hurting by virtue of political isolation, Etihad has had two rough hits through its investments in Air Berlin and Alitalia and there will also be competition from airlines exercising the fifth freedom to fly between two foreign countries on a flight originating or ending in one’s own country. Add to that the unofficial but widely practiced sixth freedom of flying from one foreign country to another while stopping in one’s own country for non-technical reasons and regional 24 • SP’S AIRBUZ • Issue 6 • 2017

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carriers are not going to find it easy. With India, China and the ASEAN belt expected to be the new emerging markets, the attention of the industry will engage in a tectonic shift. In other deals, Bombardier signed a letter of intent with EgyptAir for the purchase 24 CS300 jets from Bombardier and Watanya Airways took the first step towards a possible 25 Airbus A320neo aircraft to Golden Falcon Aviation, its exclusive aircraft supplier. In a breakdown given by Mubasher, the delas per day make for impressive reading. On the first day of the Dubai Air Show, deals signed amounted to $19.34 billion, while on the second day, companies signed agreements worth $3.8 billion. The third day saw deals worth $7.1 billion being concluded, while the fourth marked the highest value of agreements signed for $77 billion. The fifth and final day of the Dubai Air Show saw a $1.23 billion in signed agreements. Airbus and Boeing came away with orders of 695 planes worth $92 billion of which Indigo helped the French manufacturer pull in 510 aircraft of which 502 were from the Airbus A320neo family and the rest were for the company’s multi-role C295 transports and ‘H generation’ H160 rotorcraft with a price tag of $58.3 billion, according to Airbus.

Airbus and Boeing came away with orders of 695 planes worth $92 billion of which Indigo helped them to pull in 510 aircraft of which 502 were from the Airbus A320neo family

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Dubai Airshow 2017

Bell 429 twin-engine helicopter on display

Boeing, however, said it secured total commitments for 302 aircraft including 50 options with a value of about $50.7 billion at list prices. It also signed agreements with Azerbaijan Airlines, Alafco and Ethiopian Air. Meanwhile Air Arabia signed for the lease of six Airbus A321neo to augment its fleet. And as the 160 aircraft on static display took off for home, there was good reason for Dubai to feel satisfied. Now time will tell if the figures will be infused with life.

ating avionics systems, assessing its performance in crosswind operations and measuring its external noise. Once it gets its certification it will be another contender in the global market. In the interim, work on the A400M transport aircraft is moving along nicely although the need to certify the modified gearbox following discovery of a crack in one of them, will take a little longer and is unlikely to be resolved before early 2018.

US OPEN TO F-35 SALE TO UAE. An exciting dimension during the Air Show was centred on the tangible interest shown by the UAE in opening talks over the F-35 Lightning II and the readiness of the US to sit at the table. This fifth-generation fighter will be a game-changer and could well turn the rest of the pack into obsolete mode. Even though this is just a start, the other jab in the arm for the Emirates came from the call for an upgrade in the Mirage fleet. The 42 planes that have been in service since 2003 will undergo a refit although details of the project have not been disclosed. There was also considerable interest over Malaysia’s intent for a maritime patrol aircraft (MPA) when it announced that this surveillance fleet was its number one priority. This light combat aircraft would have exceptional air-to-ground capabilities and, as of now, the Korean KA-50 looks the winner even though a sweet deal could have other manufacturers offering to replace the recently grounded MiG-29 fleet. Also of interest at the Air Show was Boeing initiative in pitching the KC-46 tanker to this region and the company is confident it will gain a foothold in this segment although issues in flight tests have delayed the schedule for the latest version. Boeing is of the opinion that just the refueling in flight needs of the Saudi forces is a viable market in itself. Meanwhile, the KC-390 from Embraer arrived in Jacksonville for a comprehensive testing programme which includes evalu-

OPPORTUNITIES FOR SALES IN THE FUTURE. Bombardier Commercial Aircraft confirmed that it signed a letter of intent (LOI) for up to 24 CS300 aircraft with EgyptAir Holding Company of Cairo. This includes 12 CS300 aircraft with purchase rights for an additional 12 aircraft at a cost of $1.1 billion for the first deal. As it showcased this series in Dubai, another manufacturer Hondajet took to the skies and established a good relationship with potential customers for its fast selling small bizjet. The most delivered jet in its category for 2017, the aircraft was positively received by sheikhs and corporate executives in the Middle East. With the concentration largely on the Boeing–Airbus divide of the spoils, the other players namely Bombardier and Embraer, recorded no sales; but used the occasion to engage in some ground work for the near future. For Embraer, it was an opportunity to talk to several as yet undisclosed Middle East carriers for small aircraft to ply short haul regional routes. With the Embraer E2 family of aircraft on the cusp of certification, it was no surprise that the Chief Executive Commercial Aircraft John Slattery looked pretty chuffed with the current round of negotiations. Meanwhile, Gulf Air signed a $1.9 billion LEAP-1A engine and services agreement with CFM. The UAE Armed Forces went in for five CN295 military transport aircraft with related services from Spain’s Airbus Defence and Space company for $250 million. SP SP’S AIRBUZ • Issue 6 • 2017 • 25

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Dubai Airshow 2017

John Slattery

“We expect to sell about 370 aircraft in the Middle East”

Jayant Baranwal, Editor-in-Chief, SP’s AirBuz had a Quick 4 with John Slattery, President & CEO, Embraer Commercial Aviation during Dubai Air Show

PHOTOGRAPHs: Embraer

• “We expect to sell about 370 aircraft in the Middle East” • “We have 80 per cent market share in China’s 130 seat segment in-service jet fleets” • “Working rigorously towards the environmental issues and the greener skies,is in our DNA” Jayant Baranwal (JB): What number of ERJs are operating at this point in the Middle East and what number of E195-E2 you forecast to operate in Middle East in the next 10 years? John Slattery (Slattery): There are 25 aircraft in the region. In terms of the opportunities, the discussions we are having and the forecast we have done to sell is 370 aircraft. We have got a family from E175-E2 through to the E195-E2 at the moment. I am not breaking that down. A lot of my discussions with airlines in the last day or so have been around either the E190-E2 or the E195-E2. Both aircraft have got the same engine so it could even be working together with these aircraft. I think all the aircraft are getting an appetite. 26 • SP’S AIRBUZ • Issue 6 • 2017

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JB: The very first customer we believe will be Azul for E195-E2. What number of aircraft they are likely to acquire? Slattery: Yes, that’s correct. They have already announced a firm order for 30 aircraft. What their larger plan is, I will direct that question to John Rodgerson, the CEO of Azul. Azul at one point was operating over 80 E-Jets with the acquisition of TRIP Linhas Aéreas of Brazil so they have everything from E175 to E190 and of course E195. They have now pivoted around the E195, and are one of the largest operators of E195 in the world. They will be our launch operator of E195-E2 in the first half of 2019. JB: China Express, a regional airline, seem to be going for A320 aircraft. How do you perceive this development?

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Dubai Airshow 2017

Slattery: I won’t talk about specific airline, I don’t think that’s fair to talk about airline campaigns that are going on. But I would say in China, we have had active commercial relations for over 15 years. We have a significant presence in Beijing and in terms of market share under 130 seats of in-service jet fleets, we have over 80 per cent market share. It’s a market we are very much committed to. We have a number of flag carriers and marquee type customers there already and certainly, as we project forward, both Mark and I showed you the global view over the next 20 years and China features heavily in that. JB: Any of the environment and Green Sky initiatives on the part of Embraer?

Slattery: Multiple, certainly when you think about the E2, the reduction in fuel and the reduction in noise emissions, feed deeply into that. In addition to that, Embraer has been working on an ecoDemonstrator using our partnership with the Boeing Company, so Embraer is very much committed to become as environmentally friendly as possible. When you get to see our mock-ups of E2, our colleagues will tell you about the specific environmental action we have taken on the material that you will see on the inside of the mock up. So, it’s in our DNA. We are completely aligned with global demands and E2 can be a perfect complement to Airlines’ requirements in that perspective. SP SP’S AIRBUZ • Issue 6 • 2017 • 27

Regional Aviation

connectivity

Potentially a Great Contributor: E195-E2 can be a suitable aircraft to serve thin long routes in India helping in the reduction of chaos at the hub airports

Operating on Thin Long Routes For a healthy growth of the Indian airline industry as well for enhanced convenience to passengers, there is no option but to provide direct point-to-point aerial connectivity by B.K. Pandey

PHOTOGRAPH: Embraer

here is no doubt that air travel provides the level of convenience that other modes of transportation do not. A journey on board an aircraft, whether an airliner or a business jet, helps save time especially when travelling over long distances even within the country. Sometimes, air travel could be the only means to reach remote areas or those locations that are not connected by other means of surface transport such as road or rail networks. In India, the facility to travel by air for the general public has undergone a sea change from the time the Indian airline industry which had been totally under the control of the Government of India since it was nationalised on August 1, 1953, was thrown open to the private sector in the early 1990s. The Indian airline industry received a further impetus with the emergence on the scene of low-cost carriers (LCC), a concept introduced by Captain G.R. Gopinath in 2003. And more recently, the NDA Government has launched a campaign to bring the facility of air travel to the masses at affordable costs through major changes in the National Civil Aviation Policy (NCAP) the latest version of it was unveiled in June 2016. The newly introduced pol28 • SP’S AIRBUZ • Issue 6 • 2017

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icy changes have been designed to exploit the immense potential of growth that lies in the regional aviation segment of the industry. In pursuit of this objective, the Ministry of Civil Aviation (MoCA) has also crafted the Regional Connectivity Scheme (RCS) as part of the NCAP, which entails the building and bringing into the operating network in a phased manner, a large number (reported to be around 200) of no-frills airports in the hinterland including remote and inaccessible areas of the country, to provide aerial connectivity to Tier-II, Tier-III and Tier-IV cities that currently do not figure in the existing aerial connectivity network. The Indian airline industry has come a long way since its inception and especially over the last two and a half decades. However, despite the impressive growth, some frustrating gaps in the air transportation system do continue to linger thereby adversely affecting both its efficiency and productivity. Amongst the stakeholders, the worst sufferers of the adverse consequences of this malaise are those that travel by air and not the airlines themselves. There is no doubt that these gaps need to be plugged to make the air transportation system more efficient, dynamic as well as to reduce the level of inconvenience for the travelling public.

Regional Aviation

connectivity

Key Highlight

The MoCA may consider appropriate legislation that would mandate Indian carriers to take on at least a part if not all, of the operations in this segment for the overall benefit of the Indian airline industry and the travelling public.

THIN LONG ROUTES. In a conversation in the recent past with Jayant Baranwal, Editor-in-Chief, SP’s Aviation, Rajiv Nayan Choubey IAS, Secretary in the Ministry of Civil Aviation, while commenting on the Indian airline industry, spoke of “thin long routes” and the reluctance of Indian regional carriers to operate on these. In his perception, if Indian carriers begin to operate on thin long routes, it would help airlines to avoid transiting through heavily congested major hub airports making it more convenient for the travelling public. In the process, it would also help in reducing the crippling congestion at the six major hub airports that currently handle around 65 per cent of the civil air traffic in the country. As Indian carriers further expand their fleets with the passage of time and increase the number of flights, movement of aircraft through the six major hub airports will continue to increase thus further aggravating the problem of congestion at the major hub airports that have already reached or even crossed the saturation point. This has already become a serious issue for all stakeholders and the air passenger being the worst affected. The expression “thin long routes”, not commonly used in civil aviation parlance, are those routes that are not “heavily travelled” on. In effect, it implies that the number of passengers travelling on these thin long routes is not large enough to generate passenger load factors of the level required to financially justify deployment of large capacity airliners such as the Airbus A320 or the Boeing 737 family of aircraft on these routes. Also, in the Indian context, distance-wise, these routes are so long that that these are clearly beyond the range of lower capacity aircraft such as the ATR family or the Bombardier Q400, both types of aircraft powered by turboprop engines with maximum ranges between 1,500 to 1,700 km. These aircraft are currently deployed for enhancement of regional connectivity. As neither the large capacity Airbus A320 nor the Boeing 737 family of aircraft, both at the higher end of the spectrum and the turboprop airliners at the lower end, operating with Indian carriers, are suitable to operate on thin long routes that would require the airliners to fly distances of 2,000 to 2,500 km. As the thin long routes do not provide adequate passenger load factors, this segment of the operating network remains practically unsubscribed. Passengers desirous of travelling on these segments have no option but to transit through one of the major hub airports. Consequently, apart from the problems associated with congestion, they have to bear the burden of higher air fares, time penalty and avoidable harassment of changing aircraft at the major hub airport they are required to transit through. In the final analysis, it is the public travelling by air that has to suffer the consequences of this yawning gap and the anomalies in the operational paradigm of Indian carriers.

PERSPECTIVE OF INDIAN CARRIERS. It is a well known fact that one of the primary aims of airlines is to be profitable which indeed is a prerequisite for their very survival. To achieve this objective, the regular airlines operate large jet powered aircraft such as the Airbus A320 or the Boeing 737 family of twin-jet airliners with a capacity of seating around 200 passengers, over longer routes that that invariably provide connectivity between the major hub airports as also to other points or destinations. These sectors provide respectable and remunerative passenger load factors. The regional airlines on the other hand, operate fleets of smaller aircraft such as the ATR or Bombardier Q400 turboprop platforms. These are of much lower seating capacity of around 70 to 75 passengers and with much lower range that are between 1,500 and 1,700 km and aim to connect smaller airports with the nearest major hub airport. This has led to the development of the hub-and-spoke concept and in effect, the regional carriers thus serve only as feeder airlines for the regular carriers. Under the existing pattern, regional carriers have not been providing connectivity amongst regional airports primarily because operations on the regional routes are not remunerative owing to low passenger traffic and load factors that do not justify the heavy investments required. THE WAY FORWARD. For a healthy growth of the Indian airline industry as well for enhanced convenience to passengers, there is no option but to enhance direct point-to-point aerial connectivity. This will help eliminate unnecessary transit stops for passengers at the major hub airports translating into lower air fares, mitigate the level of congestion and reduce total fuel burn thus benefitting the environment as well through lower emissions. There is therefore the need for Indian carriers to look at options beyond the hub-and-spoke model and consider operating direct point-to-point and especially on thin long routes. It goes without saying that to break out of the huband-spoke model and focus on thin long routes, the airlines would have to induct aircraft with range higher than what the ATR family and Bombardier Q400 are capable of. For better passenger load factors, it would also be desirable to select a platform with seating capacity lower than the 180 to 200 seats that the Boeing 737 and Airbus A320 offer. In other words, for operations to be financially viable on thin long routes, the airlines will need an aircraft that has range and seating capacity that lies between the two categories of platforms currently being operated for regional and regular operations. Fortunately, two new platforms that could well meet with these requirements are on the horizon. These are the regional airliners from Embraer of Brazil especially their latest product, the E195-E2 as also the Mitsubishi MRJ from Japan. While the need for airlines to operate on thin long routes is an inescapable necessity, in view of the heavy investment required to induct a fleet of a new class of aircraft, the leading Indian carriers would understandably be reluctant to take on this task regarding it as an additional financial burden. The Ministry of Civil Aviation (MoCA) would have to consider expanding the scope of RCS to include operations on thin long routes and provide adequate financial incentives to offset losses suffered by the Indian carriers who opt to operate on these routes. Alternatively, the MoCA may consider appropriate legislation that would mandate Indian carriers to take on at least a part if not all, of the operations in this segment for the overall benefit of the Indian airline industry and the travelling public. SP SP’S AIRBUZ • Issue 6 • 2017 • 29

Regional Aviation

Airlines

Bombardier CRJ900 aircraft in China Express Airlines’ livery

Regional Airline that is Making Waves The regional airline has opened over 80 routes, thus aiding social and economic development of the undeveloped regions, besides helping in tourism activity

PHOTOGRAPH: Bombardier

by R. Chandrakanth

hina Express, also known as Huaxia Airlines, is China’s first private regional airline and it is already a decade old. Indeed, China has taken the lead over India in starting a regional airline and has continued to look at ways of expanding airline network across the vast geographical expanse. With improved multi-modal transportation network, China has been significantly moving people and goods across the country, thus accelerating development. China Express is based in Guizhou, a province in the People’s Republic of China located in the southwestern part. Its capital city is Guiyang. Though Guizhou is economically undeveloped it is rich in natural resources. China Express operates services from its hub at Chongqing Jiangbei International Airport, as well as 30 • SP’S AIRBUZ • Issue 6 • 2017

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secondary hubs at Guiyang Airport, Dalian Airport, Hohhot Airport and Xi’an Airport. The carrier is using a fleet of Bombardier CRJ900 series aircraft and Airbus A320. The airline came into existence in May 2006 and is owned by Cathay Fortune (40 per cent), High Zerio (25 per cent), Tampines International (24 per cent) and others 11 per cent. Bombardier’s NextGen aircraft. In 2013, Bombardier Aerospace announced that China Express had placed a firm order for three CRJ900 NextGen airlines, as well as entered into conditional purchase agreements for five CRJ900 NextGen aircraft with options on an additional eight CRJ900 NextGen aircraft. At that time it had a fleet of five CRJ200 aircraft and six

Regional Aviation

Airlines

CRJ900 aircraft. In 2012, it made history by being the first to operate the CRJ900 aircraft in the country. According to Planespotters, the airline has 33 aircraft besides two on order and the average fleet age is 2.7 years. The regional airline has opened over 80 routes, thus aiding social and economic development of the undeveloped regions, besides helping in tourism activity. It is following the strategic approach of small to big through opening up of regional routes. From its maiden flight in Liping, Guizhou, in September 2006, China Airlines has come a long way. The very next year, it entered into a partnership with a state-owned airline and the ‘One Pass’ cross-linking model between China and Hong Kong’s first airlines had lot of synergies. Its first Bombardier aircraft was the CRJ200 which it bought in June 2008. It created a record in the same with aircraft flight reliability of 99.78 per cent. It was in December 2009, the airline made annual profit for the first time and that with a minimum fleet size. In 2010, it bought over Eastern Airlines and in the following year, it opened direct flights to form a network covering the southwest, east, north and south China. The next year it had direct flights connecting the southwest region to the east, north and south China. Expanding network. It was in 2012 July that China Airlines launched the first domestic CRJ900 regional aircraft which flew to Chongqing Jiangbei International Airport, thus opening a new chapter in regional aviation. It kept expanding its network and by 2014 it had over 100 sorties a day. In the same year, it entered into a code sharing agreement with China International Airlines, Shandong Airlines. For Bombardier, 2014 was a landmark year as both the Chinese and Canadian Prime Ministers witnessed the signing ceremony wherein China Airlines ordered 24 Bombardier aircraft. China Airlines retired CRJ200 aircraft on April 30, 2015. The last flight was Shanghai Pudong to Chongqing route as G52006. The next year the Civil Aviation Authority of China formally approved the adjustment of the scope of air transport business in China to include Hong Kong, Macao and Taiwan, to tap into both international passenger and cargo markets. Focus on passenger comfort. With the coming of the CRJ900NG regional aircraft, China Airlines was offering additional leg space (by one inch), enhanced cockpit comfort, new cabin interiors, including a larger overhead luggage compartment, and larger windows. The idea was to give passengers a good flight experience and the airline has stated that with growing popularity it was expecting to increase its fleet size to 66 by the year 2020. Based on the list price for the CRJ900 NextGen aircraft, the firm order of China Airlines was approximately $134 million US. The value of the entire contract (five CRJ900 NextGen and

The outstanding economics of Bombardier’s CRJ NextGen aircraft will allow airlines to profitably enter smaller tiertwo and tier-three markets, providing efficient service

options for additional eight CRJ900 NextGen was USD733 million. “By 2016, we anticipate that the total number of China Express’ routes will reach approximately 90, three times as many as the number of existing routes, and will cover 60 per cent of China’s regional cities,” said Wu Longjiang, President, China Express. “We are confident that our fleet of Bombardier aircraft will be a very efficient and reliable asset in achieving these objectives.” “With China’s growing economy, improved support infrastructure and expanding middle-class, regional air travel will be more accessible to Chinese citizens in more regions,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “As demonstrated by China Express, the outstanding economics of Bombardier’s CRJ NextGen aircraft will allow airlines to profitably enter smaller tiertwo and tier-three markets, providing efficient service to a growing demand from business and leisure travelers. We are delighted that China Express has once again put its trust in Bombardier.” Banking on Bombardier. In 2015, Bombardier Commercial Aircraft announced today that China Express Airlines (China Express) has placed a firm order for 10 CRJ900 regional jets, raising its total orders for this model of aircraft to 38. With this transaction, China Express has exercised eight previously acquired options for CRJ900 aircraft. To date, 20 of the CRJ900 aircraft ordered by China Express have been delivered. Based on the list price of the CRJ900 aircraft, the order announced today is valued at approximately $462.6 million US. “China Express is committed to providing air services to people in Tier 3 and Tier 4 cities in China. Our mission is to improve the connectivity by air for those communities,” said Wu Longjiang, President, China Express Airlines. “The CRJ900 is the right aircraft for our cooperation with major airlines on code sharing and connecting flights, as well as cooperation with cities. It offers excellent economics and reliability and is well liked by our passengers. We continue to expand our fleet with these fine aircraft to serve both current and future demand and destinations.” “We are very pleased with China Express Airlines’ continuing confidence in the CRJ900 jetliner and its role in expanding regional airline services in China,” said Andy Solem, Vice President, Sales, China and North Asia, Bombardier Commercial Aircraft. “Our 2015-2034 Commercial Aircraft Market Forecast expects delivery of some 900 60- to 100-seat airliners to China during the forecast period and the CRJ900 regional jet is proving to be a perfect fit in that market segment.” Orders Airbus A320ceo with CFM56 engines. China Express in October 2017 became the newest operator of CFM International’s CFM56 engines when it took delivery of the first of 11 CFM56-5B-powered Airbus A320ceo aircraft; the remaining aircraft are scheduled to be delivered in 2018 and 2019. The airline is operating the aircraft to destinations as Liuzhou, Haikou, Xiangyang, Bijie, and Xiamen. It also operates to two international destinations Bangkok and Phnom Penh. “We’re excited to welcome China Express to the CFM family of operators,” said Gaël Méheust, president and CEO of CFM International. “We worked closely with them to ensure that they had a very smooth entry into service with our engines, and our team in China will do its best to support this new fleet.” The airline thus is an expansion mode, using regional jets and the A320 aircraft, the first of which was delivered in October. China Express has been one of the fast-growing regional airlines in China with excellent safety record. SP SP’S AIRBUZ • Issue 6 • 2017 • 31

Finally

Better Days Ahead for Civil Aviation While the MoCA has taken a number of steps to introduce reforms in the Indian civil aviation industry, it has also recognised the need to shed incurable liabilities

ILLUSTRATION: Anoop Kamath

n India, travel by air has traditionally been regarded as a privilege for only the affluent sections of the society. As such, since independence, the Indian civil aviation industry had not been getting the attention of and support from the government essential for its healthy and speedy growth. The first and perhaps the only major reform the Indian airline industry went through before the Modi-led government came to power was in the early 1990s when the government opened the doors for the entry of the private sector into the Indian airline industry. In the initial years after decontrol, several newly established private carriers had to shut down as they were not able to cope with the hostile business environment. However, in the recent years, the government has initiated far reaching reforms in this sector. The first major step was the release in mid-2016 of the National Civil Aviation Policy (NCAP) that, among other things, did away with the intensely controversial 5/20 Rule that had a crippling effect on the newly established private airlines desirous of operating international flights. The 5/20 Rule required newly established carriers to have the minimum specified number of aircraft on their inventory as also complete a minimum number of years of operation in the domestic sector before they could be permitted to undertake flights in the international segment. The NCAP also provided fresh avenues for growth of the Indian airline industry through a major thrust on regional aviation. This is being achieved through the Regional Connectivity Scheme (RCS). Airlines participating in the scheme have assured financial support from the government to offset losses incurred if any, something that had been unheard of in the past. End April this year, Prime Minister Narendra Modi personally launched the RCS when he flagged off a flight from Shimla to Delhi. The most significant aspect of this policy is that it aims to facilitate air travel for the masses at affordable cost. More recently, the business aviation segment of the Indian civil aviation industry got a shot in the arm when the Ministry of Civil Aviation (MoCA) did away with the mandatory requirement of obtaining prior clearance by way of a “YA Number” from the Directorate General of Civil Aviation (DGCA), the Indian regulatory 32 • SP’S AIRBUZ • Issue 6 • 2017

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authority, for a business aircraft planning to fly to a destination outside the country. Prior clearance by the DGCA was a complex and time consuming process and hence this modification in the regulations has come as a massive relief to business houses as well as individuals owing business jets. They can now undertake urgent business related flights on short notice. Under the new dispensation, they will only be required to file their flight plan with the Air Traffic Control a few hours before the flight. Hopefully, the MoCA will not only introduce further reforms, but will also make it easier for foreign registered aircraft to fly to India or over fly Indian territory. The most recent event that has rekindled hope in the general aviation segment of the Indian civil aviation industry has been the flight aboard a seaplane by Prime Minister Modi from Sabarmati river to Dharoi dam in Mehsana district at the end of his election campaign in Gujarat. There is immense potential for seaplane services in India given the 7,500 km of coastline, the island territories of Andaman and Nicobar as also Lakshadweep, inland waterways as well as the large number of lakes and dams in the country. Efforts in the past by state governments as also by private agencies to establish seaplane services have not succeeded. Hopefully, the gesture by Prime Minister Modi to undertake a flight by a seaplane when he had other modes of travel available to him, will spur investment in this segment of general aviation especially as it comes at a time when the government is embarked on journey of reforms. While the MoCA has taken a number of steps to introduce reforms in the Indian civil aviation industry, it has also recognised the need to shed incurable liabilities. One such step is disinvestment of the national carrier Air India that has amassed a loss of over `50,000 crore and has become a serious liability for the exchequer and the tax payer in the country. The MoCA along with a Group of Ministers is working overtime to finalise the contours of the strategic disinvestment of the national carrier. Finally, one can be reasonably confident that the Indian civil aviation industry can look forward to better days ahead! 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)