Issuu

interview: v.p. agrawal, chairman, aai p 18

april-may 2012 `100.00 (India-based Buyer Only) www.spsairbuz.net

one-to-one: filippo bagnato ceo, atr p 26

honeywell and civil aviation safety p 30

INDIA AVIATION 2012 SPECIAL

AIRBUZ

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

❚ airbus’ newest neo ❚ limiting emissions ❚ regional aviation: untapped potential

SHOW TIME! RNI NUMBER: DELENG/2008/24198

boeing 787 dreamliner will be on display at the india aviation 2012 in hyderabad

An SP Guide Publication

table of contents Cover: The much-awaited Boeing 787 Dreamliner which is expected to be soon inducted into Air India’s fleet will be on display at India Aviation 2012 in Hyderabad.

INTERVIEW: V.P. AGRAWAL, CHAIRMAN, AAI P 18

APRIL-MAY 2012 `100.00 (INDIA-BASED BUYER ONLY) WWW.SPSAIRBUZ.NET

ONE-TO-ONE: FILIPPO BAGNATO CEO, ATR P 26

HONEYWELL AND CIVIL AVIATION SAFETY P 30

INDIA AVIATION 2012 SPECIAL

AIRBUZ

A N E X C L U S I V E M A G A Z I N E O N C I V I L AV I AT I O N F R O M I N D I A

❚ AIRBUS’ NEWEST NEO ❚ LIMITING EMISSIONS ❚ REGIONAL AVIATION: UNTAPPED POTENTIAL

SHOW TIME! RNI NUMBER: DELENG/2008/24198

BOEING 787 DREAMLINER WILL BE ON DISPLAY AT THE INDIA AVIATION 2012 IN HYDERABAD

Photograph: Boeing

AN SP GUIDE PUBLICATION

SP's Airbuz Cover 02-2012.indd 1

10/03/12 12:29 PM

air transport / finance P14 fuelling high

The largest constituent of an airline’s operating costs is incurred on ATF. In India, its impact is even more impairing in as much as the cost of ATF here is more than 50 per cent higher than the global average.

Air Transport / airlines P16 The way out

The Indian space and missile programmes prove that the capability exists and what is needed is proper direction and will.

infrastructure / regional aviation P24 untapped potential

There is an opportunity that lies slumbering in the form of airports or airstrips that can be commissioned in the future. P10 flexing in rough weather P12 newest neo P18 interview: v.p. agrawal, chairman aai P22 centres of attraction P30 smart runway & smart landing P32 limiting emissions P34 quality learning P36 show report: singapore airshow 2012 P39 IBAE report ONE-TO-ONE / ATR CEO P26 Filippo bagnato, ceo, atr

‘India still has strong and untapped potential ahead’

Infrastructure / Air Cargo / interview P28 V.S. Bobba, Bobba Group of cos

Bengaluru-based Bobba Group of Companies, has a professionally competent and dedicated team of qualified and trained personnel to handle air cargo.

departments P2 A word from Editor P4 NEWSBRIEFS P9 First P40 FInally SP’S AIRBUZ • Issue 2 • 2012 • 1

A word from

editor

Publisher And Editor-in-Chief

Jayant Baranwal Editor

Air Marshal (Retd) B.K. Pandey Assistant Group Editor

R. Chandrakanth (Bengaluru) Senior copy-editor & Correspondent

Sucheta Das Mohapatra Contributors

Dr Mani Sishta, B.N. Gokhale, R. Srinivasan, Group Captain A.K. Sachdev, Arun Lohiya, Group Captain Joseph Noronha, Captain Ajit Agtey, S.R. Swarup, Vasuki Prasad, J.T. Nayaham, Mahesh Acharya Air Commodore (Retd) K.B. Menon Europe Alan Peaford, Phil Nasskau Chairman & Managing Director

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hile the global civil aerospace industry is focused on the forthcoming India Aviation 2012, the airline industry in India continues to make headlines for all the wrong reasons. The national carrier Air India that has been on a perpetual downslide since the ill-conceived merger in 2007 with Indian, amidst host of other difficulties, has been plagued by labour dispute. The airline has once again been served notice of strike by its pilots from April 1, 2012, for non-payment of salaries, a problem that has become endemic on account of the deep financial mess the airlines has been in for some time now. But what is most surprising and difficult to explain is the sordid mess the most glamourous Indian carrier Kingfisher Airlines has descended into. And even more perplexing is the fact that its parent global business house, the UB Group, does not appear to be inclined to come to its rescue, at least not so far or overtly. While Kingfisher Airlines appears to be teetering on the verge of collapse, some of the other private carriers seem to be in difficulty too. The largest private carrier in India, Jet Airways, has also defaulted in disbursement of salaries and there are indications of problem with the budget carrier SpiceJet as well. Apart from the flawed business models of Indian carriers, the one factor that inhibits the growth of Indian civil aviation is paucity of infrastructure. While there has been a perceptible change in airport infrastructure since the boom in the industry began seven years ago and major plans are under way as recounted by V.P. Agrawal, Chairman Airports Authority of India, in an interview covered in this issue, there is yet considerable distance to cover before the Indian civil aviation industry in general and the Indian airline industry in particular can exploit the full potential of the demand for air travel that the country holds. In fact in this issue, different authors have analysed the inhibiting influence of inadequate infrastructure both at the national and regional levels as also on the growth of the air cargo segment as stated by V.S. Bobba, Chairman Bobba Group. Of particular interest would be the perspective Filippo Bagnato, Chief Executive Officer, ATR, has offered in his interview with regard to the potential for regional aviation and the demand of regional aircraft in the country. Our correspondent Vasuki Prasad visited CAE Global Academy, better known as National Flying Training Institute. A report on this unique institution titled as ‘Quality Learning’, figures in this issue. Writing from Goa, Joseph Noronha looks at the environmental challenges that the industry is now required to be contended with. While Captain R.S. Makker writing for us for the first time examines the weaknesses of the Indian civil aerospace industry, our Special Correspondent reviews the progress of the Indian regional jet programme that appears to be a distant dream. This issue carries a pictorial coverage of the Singapore Air Show and the third Indian Business Aviation Expo organised by the Exhibitions India Group and MIU Events held at the Grand hotel, New Delhi. All these apart from the regular features in this “India Aviation 2012 Special Issue” of SP’s AirBuz. Do visit us at Stall 3, Hall C at the India Aviation 2012 show in Hyderabad, March 14-18. Wishing you many happy landings!

www.spguidepublications.com Owned, published and printed by Jayant Baranwal, printed at Kala Jyothi Process Pvt Ltd and Published at A-133, Arjun Nagar (Opposite Defence Colony), New Delhi 110 003, India. All rights reserved.

2 • SP’S AIRBUZ • Issue 2 • 2012

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B.K. Pandey Editor

Nouveau Monde DDB Toulouse - ÂŠ pixteur.com

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

NewsBriefs

( INDUSTRY Bombardier at Singapore Air Show

Bombardier Aerospace was present at the Singapore Air Show 2012 with its industryleading aircraft which included Learjet 60XR, Challenger 605 and Global 5000 business jets, as well as the Q-400 NextGen and CRJ1000 NextGen commercial aircraft. Also displayed was its state-of-the-art CSeries aircraft dome with full-scale passenger cabin and flight deck demonstrator. Bombardier predicts that over the next two decades, a total of 975 business jets will be delivered in the Asia-Pacific region which driven by economic growth, is expected to be ahead of the rest of the world. Including China, in the next 20 years, the Asia-Pacific region as per Bombardier, will take delivery of approximately 4,000 aircraft in the 20- to 149-seat category. Almost 300 Bombardier CSeries, CRJ and QSeries commercial aircraft are on order or are currently operating in the Asia-Pacific region.

Large orders for Airbus

Having delivered 37 aircraft in December 2011 which included one A380 superjumbo, European Aerospace major Airbus received orders for 91 airliners in the month of January this year. According to the company, the fresh orders were largely of standard and new-engine versions of its single-aisle A320 family of aircraft and included 33 revamped A320neo and 18 standard engine aircraft for AviancaTaca. The company has plans for delivering 570 aircraft in 2012 as against 534 the previous year in which it had bagged a record number of orders for new commercial jets which stood at 1,419 aircraft valued at $140 billion. This order was much higher than that for Boeing and surpassed its own record in 2007of 1,413 orders. Bulk of the fresh orders was for the fuel-efficient A320neo, the first delivery of which is expected in 2015. Airbus is aiming to roll out 42 aircraft a month in 2012 of the singleaisle A320. Additionally, it is also aiming at a 4 • SP’S AIRBUZ • Issue 2 • 2012

monthly goal of 9.5 wide-body twin-engine A330s and three of its double-decker A380 super jumbo jets.

Production Rate: Boeing 737

Boeing has successfully increased and achieved a production rate of 35 airplanes a month for its narrow body single aisle airplane, the Boeing 737Next-Generation. The first aircraft from the increased production rate schedule was delivered to long time customer Norwegian Air Shuttle via leasing company AWAS Aviation Services. Boeing aims to increase the production rate to 38 aircraft per month by the second quarter of 2013 and to 42 aircraft per month by the middle of 2014.

New Inductions

Estimates by a working group set up by the Planning Commission to formulate the strategy for the civil aviation sector for the Twelfth Five Year Plan period are that over the next five years, Indian carriers and non-scheduled operators together may add around 1,000 fixed and 250 rotary wing aircraft to their existing fleets. Driven by growing demand in passenger and cargo traffic and consequent demand for increased capacity, despite the ongoing financial turmoil, the scheduled carriers are likely to add around 370 aircraft worth about `1,50,000 crore to their fleet and the general aviation segment could induct 300 business jets, 300 small aircraft and 250 helicopters valued at `20,000 crore during this period. Fleet expansion at this scale would require airlines to explore multiple funding options including capital markets, long-term borrowings and leasing.

Lion Air Orders Boeing 737 MAX

Indonesia’s largest private airline, Lion Air, has placed a $22.4 billion order for 201 Boeing 737 MAX and 29 Boeing 737-900ERs NextGeneration aircraft. The 737 MAX is a new engine variant of the Boeing 737NG (Next Generation) developed to counter the challenge from Airbus A320neo. The agreement also includes option for another 150 aircraft

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valued at $14 billion. Lion Air currently operates a fleet of 66 Boeing 737 including 57 Boeing 737-900ER in an all-economy 213seat configuration. As per Boeing company, this deal is the largest commercial airplane order ever in Boeing’s history. The 737 MAX is a new engine variant of the world’s best selling airplane and builds on the strengths of Boeing’s Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Till date, the 737 MAX has orders for more than 1,000 airplanes from 15 customers and the NextGeneration 737 family has won orders for more than 6,600 airplanes. Airlines operating the 737 MAX will see a 10 to 12 per cent fuel burn improvement over today’s most fuel efficient single-aisle airplanes and a seven per cent operating cost per seat advantage over tomorrow’s competition.

Windfall at Singapore Air Show

Orders worth $30 billion for commercial and military aircraft were recorded at the biannual Singapore Air Show in February this year indicating strength in the Asian market. Gulfstream announced a joint venture with Beijing Capital Airlines Company Ltd and Grand China Aviation Technik to operate a business jet service centre at Beijing Airport. Gulfstream will be the first business jets original equipment manufacturer (OEM) to offer maintenance, repair and overhaul services in China, the fastest-growing market for business jets not only in Asia but worldwide. Airbus President and CEO Tom Enders stated: “The Asia-Pacific region is not just important for us in terms of sales; it also offers significant opportunities for industrial partnerships as we seek ways to meet increased demand for our products and to supplement industrial and engineering capacity in Europe.” Rockwell Collins and Honeywell announced a series of equipment orders as well. BOC Aviation has selected Rockwell Collins as baseline, including its WXR-2100 multi-scan threat detection system and GLU-925 multi-mode receiver (MMR) for 30 Airbus A320 aircraft. South Korean low-cost carrier JEJU AIR has selected Honeywell to provide a full suite of avionics for its new fleet of six Boeing 737-800 NG aircraft. China Eastern Airlines opted for a range of Honeywell avionics and other equipment for its fleet, including wheels and brakes for new and existing Boeing 737 NG aeroplanes, as well as an avionics package and 131-9

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NewsBriefs

Events Calendar

auxiliary power units (APU) for 50 new Airbus A320 aircraft.

India Aviation 2012

( Business Aviation

14-18 March Begumpet Airport, Hyderabad, India www.india-aviation.in

Maiden flight of Cessna Citation Ten

Fidae International Air & Space Fair 27 March-1 April Arturo Merino Benitez Airport, Santiago, Chile www.fidae.cl/portal_fidae.aspx

Defexpo India 2012 29 March-1 April Pragati Maidan, New Delhi, India www.defexpoindia.in

Aeroexpo Morocco 4-7 April Menara Marrakech Airport, Marrakech, Morocco www.fr.aeroexpo-morocco.com/accueil_ en.html

Shanghai International Business Aviation Show 11-13 April Shanghai Dachang Airbase, Shanghai, China www.Shanghaiairshow.Com/Sibas

Corporate Aviation Safety Seminar 18-19 April Grand Hyatt Hotel, San Antonio, Texas http://flightsafety.org/aviation-safety- seminars/corporate-aviation-safetyseminar

Aero Friedrichshafen 18-21 April Messe Friedrichshafen, Friedrichshafen, Germany www.Aero-Expo.Com

European Business Aviation Convention & Exhibition (EBACE) 14-16 May Palexpo, Geneva, Switzerland www.Ebace.Aero/2012

21-24 May Minneapolis Convention Center, Minneapolis, USA www.Raa.Org/Annualconvention/HotelInformation/tabid/208/Default.aspx

Bombardier Scaling New Heights The Cessna Citation Ten prototype made its first flight on January 17, 2012, in Wichita, USA. FAA type certification is expected by the middle of next year with first aircraft deliveries during the second half of 2013. The Citation Ten mid-size aircraft introduced in 2010 is designed for greater fuel efficiency and increased comfort for up to nine passengers and two pilots. Powered by two Rolls-Royce AE 3007C2 engines, the Citation Ten at maximum all-up weight has a takeoff run of 5,150 feet, a maximum cruise speed of 527 knots and a certified ceiling of 51,000 feet. It has a maximum range of 3,242 nautical miles, putting city pairings such as New York-London, Boston-San Francisco, London-Dubai and Miami-Seattle within convenient one-hop flights. The Citation Ten is 15 inches longer than the Citation X, providing extra leg room in the forward club seating area. Other systems onboard include Clarity, Cessna’s proprietary cabin management system and the Garmin G5000 integrated flight deck. The high resolution multi-function displays have split screen capability allowing continuous monitoring of engine, flight control, hydraulic and electrical systems. Garmin’s synthetic vision technology (SVT) on the primary flight displays gives the crew a virtual reality view of runways, terrain, traffic and obstructions.

As per a trade group in the US, Bombardier’s business jet deliveries climbed 21 per cent last year, outperforming a global industry in which total shipments declined. As per the General Aviation Manufacturers’ Association, Bombardier’s performance helped fuel an increase of less than one per cent across manufacturers for all light aircraft, including piston engine and turboprop planes. Bombardier tapped growing demand for its Learjet, Challenger 605 and Global 5000 models to deliver 182 business jets in 2011, up from 150 a year earlier. About half of business jet deliveries last year took place in the US, and Europe accounted for about 20 per cent of shipments, compared with 14 per cent for the Asia-Pacific region and about 10 per cent for Latin America. Shipments of large cabin jets, weighing more than 50,000 pounds, were little changed from 200 delivered last year. Deliveries of medium-sized jets weighing 12,500 to 50,000 pounds, rose 15 per cent to 375 units, while light jet shipments dropped about 46 per cent.

Certification of Gulfstream G280 & G650

Business Aviation by Invision Air

Regional Airline Association Annual Convention & Trade Show

6 • SP’S AIRBUZ • Issue 2 • 2012

and aviation safety industries in India. India’s high growth story has created a market segment with increasing disposable incomes and a need to travel more efficiently within India. However, on account of migration of scheduled airlines to the low-cost business model, there has been a decrease in the number of business class seats available leading to shortfall in the high-end market segment which Invision hopes to address. ‘’By presenting a service which costs only between two to four times last minute business class fares, Invision Air provides all the advantages of business aviation—privacy, flexibility, efficiency, luxury, and finally creating time for its users,’’ stated Invision Air in a release.

By end of February 2012, Invision Air launched first entry-level business jet service in India with a fleet of Embraer Phenom 100 and Phenom 300 light business jets from Embraer. Plans are to establish six bases in India with two aircraft in each base. Invision Air is part of the Invision Group, a 17-year-old business house active in the telecom and marine

www.spsairbuz.net

The super mid-sized G280 and ultra-longrange G650 business jets from Gulfstream are nearing the end of their flight test schedules and are approaching service entry. The G280

NewsBriefs

has achieved several flight-test milestones for FAA type certification and has received a provisional type certificate from the Civil Aviation Authority of Israel in December 2011. The aircraft is slated to enter service in the middle of 2012. As of January 25, 2012, the three aircraft in the flight test programme have flown more than 1,835 hours in over 685 flights. The G650 is also slated for FAA and EASA type certification this year. As of January 25, 2012, the four aircraft in the flighttest programme had accumulated more than 2,675 flight hours over 820 flights. The aircraft is expected to enter service by the middle of this year. It received a provisional type certificate from the FAA on November 18, 2011, with the full FAA type certificate expected middle of this year. Over the past several months, the aircraft has been flown by FAA pilots in certification tests.

Gulfstream in general aviation

With sales totalling to $4.9 billion in 2011, an increase by 23 per cent over the previous year, Gulfstream Aerospace out-performed the majority in the industry. Together with its competitor Bombardier, Gulfstream led the business jet manufacturing segment of the industry. As per Caroline Daniels, Chairperson of GAMA for 2012, compared with the previous year, shipments declined in all three segments of the industry, pistons, turboprops and business jets. She stated, “The declines were in single digits indicating that general aviation is reaching the trough in this cycle. However, the large-cabin, long-range business jet category remained sound and midsize business jets saw growth.” Gulfstream continued to grow with deliveries of 107 units, 90 of which were large-cabin, high-end airplanes. In 2010, Gulfstream had delivered 99 airplanes, 75 of them large cabin. Buoyed by a robust order book, the company did especially well in the fourth quarter of 2011 and delivered the first 12 Gulfstream G650 production aircraft to final-phase manufacturing. The company ended the year with orders for aircraft worth $17.9 billion. Demand continued to be strong for large-cabin aircraft, with backlog of 200 G650s and a waiting time of 18 to 24 months for both the G450 and the G550.

( INFRASTRUCTURE More airports needed in India

According to the Planning Commission, growth projections in passenger traffic

suggest a requirement for 30 additional operational airports over the next five years and 180 in the next decade. In the next five years, investments would be required to increase the existing capacity of passenger terminals from 240 million to 370 million. Estimates by AAI and the industry indicate that the development of new airport infrastructure in India in the Twelfth Five Year Plan period (201217), would require investment of `67,500 crore, of which around `50,000 crore is likely to be from the private sector. As per the Planning Commission, support from the state governments to develop airports would be necessary. Besides, states would benefit as the investments would generate trade and tourism opportunities in the respective states. A working group of the plan panel on the civil aviation sector has also suggested that there was “a greater need to adopt a ‘no frills’ airport model without compromising on safety and security”. In a bid to encourage and facilitate airport development, the plan panel has recommended, among other things, exemptions on income tax and service tax for developers.

Mumbai Airport ranked third

appointments Jet Aviation

Jet Aviation has appointed Gary Dolski as the new Vice President and General Manager of the company’s MRO & FBO facility in Singapore, including responsibility for the Hong Kong and Kuala Lumpur facilities.

Gulfstream

Gulfstream Aerospace Corporation has named veteran international sales executive Trevor Esling as Regional Senior Vice President, International Sales, Europe, Middle East and Africa. The company has named Steven Meng as the Regional Sales Manager for Product Support Sales in Southern California. Gulfstream has named Eric Stuck as Senior Manager, New Business Development within the Gulfstream Product Support organisation.

HAL

R.K. Tyagi has assumed charge as Chairman, Hindustan Aeronautics Limited (HAL).

Cessna

Tim White, based in Wichita, has been appointed Senior Vice President, Americas. Kriya Shortt has been promoted as Vice President, Sales for Europe, Middle East and Africa. Bill Harris has been named Vice President Sales for Asia and Asia Pacific.

ITT

ITT Corporation has announced election of Donald J. Stebbins and Orlando D. Ashford to its Board of Directors.

Jet Aviation Chhatrapati Shivaji International Airport (CSIA), Mumbai, has been adjudged among the top three performing airports in 2011 in respect of airport service quality survey by the Airport Council International (ACI). While the Indira Gandhi International Airport at New Delhi has been ranked as the first in India and the second best globally, Mumbai’s CSIA ranks the third best airport globally and has emerged the second best in India in the 25 to 40 million passengers per annum (MPPA) category. The survey was conducted at 180 airports worldwide for the ACI Airport Service Quality Awards, 2011. G.V. Sanjay Reddy, Managing Director, Mumbai International Airport Pvt Ltd (MIAL) said, “It is a reaffirmation of our vision to transform the CSIA into

Jet Aviation has appointed Micha Miketta and Peter Davidse as new MRO Sales Directors in Dusseldorf and Zurich, respectively.

HATSOFF

Major General (Retd) Ajit Hari Gadre has taken over as CEO of Helicopter Academy to Train by Simulation of Flying (HATSOFF) an HAL/CAE joint venture in Bangalore, India.

Hawker Beechcraft

Robert S “Steve” Miller has been appointed as Chief Executive Officer of Hawker Beechcraft, Inc. one of the best airports in the world and reinforces MIAL’s efforts in improving the service quality at CSIA, which has been widely recognised by passengers.” SP’S AIRBUZ • Issue 2 • 2012 • 7

NewsBriefs

Hike in Airport Charges

Flying is set to get costlier in India this year with the Airports Authority of India (AAI) planning to double the landing and parking charges for airlines. This comes close on the heels of the 774 per cent hike the Delhi International Airport Pvt Ltd (DIAL) is seeking and the regulator having approved 334 per cent increase from April 2012. Mumbai airport is also understood to be planning to follow suit. When approved, the enhanced charges would lead to rise in air fares beyond what airlines are already contemplating to cover their massive losses. While airlines remain opposed to any hike in airport charges and asking operators to increase cash flow by lower tariffs to ensure more footfalls, airports are also pointing at massive losses and non-payment of dues from near bankrupt airlines, particularly Air India and Kingfisher that are deeply in the red and unable to pay their past dues. Fearful of the consequences of this step, a number of airlines have announced withdrawal of flights from Delhi and more are threatening to follow suit. Meanwhile, in an attempt to keep the airlines from taking any precipitate action, DIAL is exploring the possibility of only a minimal increase in landing and parking charges.

( ENVIRONMENT Biofuel powered flight

Etihad Airways became the first Gulf carrier to operate a flight powered by sustainable biofuel as it took the delivery of a Boeing 777-300ER aircraft that flew from Seattle to Abu Dhabi. The 14-hour delivery flight of the airline’s newest aircraft was operated using a combination of traditional jet fuel and plant-based jet fuel, which is fully certified for use as commercial jet fuel. “This flight marks a significant milestone in our efforts to support and drive the commercialisation of sustainable aviation fuel in Abu Dhabi, the region, and globally,” James Hogan, Etihad Airways’ President and Chief Executive Officer, said in a statement. “However, the use of a currently available biofuel is just one part of a more comprehensive longterm biofuel strategy to ensure that we are able to use biofuels to decarbonise substantially an entire industry sector in the long term. “Sustainability” is a key aspect of the biofuel production process and that the carrier as a member of the global Sustainable Aviation Fuel Users Group, has committed 8 • SP’S AIRBUZ • Issue 2 • 2012

to a stringent set of sustainability principles when looking at opportunities for biofuel development and use.

( ENGINEERING & TECHNOLOGY Rolls-Royce Trent XWB Test Flight

The Rolls-Royce Trent XWB engine took to the skies for the first time, powering an Airbus A380 test aircraft in Toulouse. The aircraft flew with one of its four Trent 900 engines replaced by a Trent XWB. The Trent XWB is the most efficient civil aircraft engine on offer in the world and will power the new Airbus A350 XWB. It is the fastest-selling Trent engine ever with more than 1,100 already sold. At the 2011 Paris Air Show, Rolls-Royce announced that it will be the exclusive engine supplier for the longer range A350-1000 aircraft. The Trent XWB ran on a ground test bed for the first time in June 2010 and test results have shown it to be the most efficient large civil aerospace engine ever produced. Chris Young, Rolls-Royce, Trent XWB Programme Director, said, “It is a great moment to see the Trent XWB take to the air for the first time. Today’s flight is the product of years of work and demonstrates the progress being made on our journey to deliver this world leading technology.”

Honeywell Avionics for Air China

Air China selected a range of Honeywell avionics equipment for its fleet of new Boeing 777-300ER as revealed by the company at the Singapore Air Show. The systems selected include Honeywell’s IntuVue 3-D weather system, SATCOM with SwiftBroadband, Traffic Alert and Collision Avoidance System with Mode S transponders, Flight Data Recorders and Cockpit Voice Recorders. Air China has also selected Honeywell to provide wheels and steel brakes for its purchase and lease of Boeing 737NGs over the next ten years.

www.spsairbuz.net

“As the country’s flagship carrier, leading the way in fleet operational efficiency and safety is of paramount importance to Air China,” said Briand Greer, President of Honeywell Aerospace Asia Pacific.

( AIRLINE NEWS Passenger and cargo traffic

The International Air Transport Association (IATA) announced global traffic results for January showing a 5.7 per cent rise in passenger demand but an eight per cent decline in air freight compared to the same month in 2011. ‘’The year started with some hopeful news on business confidence. It appears that freight markets have stabilised, albeit at weak levels. And this is having a positive impact on business related travel,” said IATA’s Director General and CEO Tony Tyler. “However, airlines face two big risks: rising oil prices and Europe’s sovereign debt crisis. Both are hanging over the industry’s fortunes like the proverbial ‘Sword of D amocles’,’’ Tyler added. International air travel rose 5.5 per cent in January year over year, while capacity climbed 4.2 per cent, resulting in a load factor of 76.6 per cent, up from 75.7 per cent in January 2011. Asia-Pacific airlines saw their traffic rise by six per cent in January compared to 2011, capacity climbed 6.4 per cent and load factor dipped slightly to 77.5 per cent. European carriers experienced a 5.3 per cent gain in traffic versus January 2011.

autonomy for Air India Charters Ltd

The Directorate General of Civil Aviation (DGCA) has recommended giving financial autonomy to Air India Charters Ltd (AICL), the company which runs Air India Express, the low-cost brand of Air India operating in the international sector. “From a safety perspective, it is imperative that AICL be given financial autonomy,” stated a financial audit report done by the aviation regulator. Air India Express is the international lowcost carrier subsidiary of the government carrier and operates in West Asian and South-East Asian countries with its base in Kochi in central Kerala. The airline operates 204 flights a week and connects 14 international destinations. The airline with an equity base of `30 crore, operates 21 Boeing 737-800 aircraft. Of these, 17 are owned by the company while the rest are on lease. Air India Express has accumulated losses of `1,105 crore and is estimated to incur loss of `430 crore in the current financial year. SP

First

Debut of a New Class Bell Helicopter has introduced the 525 “Relentless” super-medium helicopter

PHOTOGRAPHs: Bell Helicopter

t the 2012 Heli-Expo in Dallas, Texas, Bell Helicopter unveiled the Bell 525 Relentless, the world’s first “super-medium” helicopter. “Today, we celebrate with our customers not only the launch of this new product, but the result of our collective efforts to define a new class of helicopter that raises the bar on innovation in the industry,” said John Garrison, President and CEO, Bell Helicopter. The Bell 525 Relentless defines the new “super-medium” product class, positioned at the upper end of the medium class and designed to offer best-in-class capabilities to our customers. It features superior payload and range, cabin and cargo volumes and crew visibility. “The new Bell 525 Relentless is a culmination of our research and development efforts, which were informed by a representative product development panel of our customers, including PHi,

an industry leader in helicopter operations. Relentlessly listening to our customers and using their feedback to provide them with the right product at the right time has been the winning combination,” he said. The new Bell 525 Relentless will be powered by the reliable performance of world-class GE engines—the GE CT7-2F1. This latest version of the highly successful CT7 family is designed with an emphasis on low fuel consumption, low cost of operation and other technical features to ensure the aircraft meets the requirements of long-range, high payload missions. The CT7-2F1 engine includes a state-of-the-art full authority digital engine control (FADEC) plus advanced materials, primarily in the turbine section. Capable of carrying up to 16 passengers, the Bell 525 Relentless is designed to support customers in various mission configurations including oil and gas, search and rescue, helicopter emergency medical services and VIP/corporate transport. SP SP’S AIRBUZ • Issue 2 • 2012 • 9

SP’s EXCLUSIVE

Flexing in rough weather The NCAD project report suggests that if the government approves the Indian civil airliner programme quickly, the first prototype can be airborne by 2017 with inductions into airlines and other services by 2020 by SP’s Special Correspondent

PHOTOGRAPH: NCAD

s if the size and scope of the project wasn’t daunting enough, it’s already rough weather for India’s indigenous civil aircraft development effort, with a turf war now being waged over how the aircraft will be developed, who will oversee the $2 billion (`10,000 crore) programme, and how it will be marketed. The National Civil Aircraft Development (NCAD) effort, under the auspices of the Council of Scientific and Industrial Research (CSIR)’s National Aerospace Laboratory, is less than a concept at this stage, but requires government investments to begin flowing in for work to begin in earnest. The NCAD project report suggests that if the government approves the programme quickly, the first prototype can be airborne by 2017 with inductions into airlines and other services by 2020. The preliminary project report, which contains programme definition and funding requirements, was submitted to the government mid-2011, but is yet to be approved despite strong signals that the government intends to back the project whole-heartedly. It is understood that the NCAD programme will only begin to make meaningful progress in the Twelfth Five Year Plan (2011-17) period. More importantly for the substance of the programme, two crucial reports that will give shape to the NCAD effort are still awaited and expected shortly: one by former Finance Secretary Vijay Kelkar (who, notably, also authored a famous report for the Ministry of Defence recommending changes in acquisition procedures and enabling a greater participation of private sector in defence production) who will recommend a project and business model for the programme, and the second on the entire gamut of design, construction and technical aspects of the NCAD, by Dr Roddam Narasimha of the University of Hyderabad. The next few months will also be crucial in putting in place the supply chain and matrix of partnerships, particularly from the private sector. Until November 2011, the NCAD governing council was headed by former ISRO Chief G. Madhavan Nair, who relinquished office on schedule. A top officer at the NCAD board denied that the allegations against him had anything to do with the government going slow on approving the NCAD committee report, though another member suggested it may have been precisely the reason why the government was taking its time. Once major project funding begins flowing in, presumably from next year, the programme team is confident of working quickly. Several systems and concepts are ready, including basic 10 • SP’S AIRBUZ • Issue 2 • 2012

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configuration, overall performance characteristics and sub-system requirements. “The development will involve integration of existing technologies as much as it does involve developing new technologies from scratch,” says an NAL scientists associated with the NCAD. If things go according to the plan, the government hopes to see the NCAD competing with regional jets made by leaders Embraer and Bombardier. According to the project report, the Indian civil aircraft will be built around a low acquisition/maintenance/operating cost ethic, but still be a platform with advanced technologies comparable with the best in the world. The 32.3-metre-long jet (with a wingspan of 29 metres) will see a variety of disciplines and technologies developed in-house, including aerodynamics, propulsion, materials, structures, avionics, fly-by-wire, flight control system (FCS) and integrated vehicle health management (IVHM). The aircraft is intended to sport a wide cabin with four abreast arrangement and will be offered in a standard and stretched fuselage variants to accommodate 70 or 90 passengers in different class configurations. The project report also lays emphasis on the aircraft being designed for operations from ill-prepared airfields in all weather conditions with a containable logistics footprint. The top level aircraft requirements envisage 90 passenger (long fuselage) and 70 passenger (short fuselage) variants each with 1,000 kg of cargo. At full capacity, the platform will be designed for a range of 2,500 km, or 3,175 km with maximum fuel and 60 passengers. The aircraft will cruise at 41,000 feet with a cruise speed of 750 kmph at 35,000 feet optimum cruising altitude. The all indigenous avionics will include fly by wire, GPS, a low-cost head up display for both pilots and electronic flight bag. Interestingly, the project report also puts down that the aircraft will have a “new generation power plant”, low drag configuration and a mostly composite airframe with structural health monitoring. While the aircraft is being built primarily as a civil aircraft for airlines and logistics services companies, the NCAD will also fit an armed forces requirement into its vision. The use of the jet as a platform for special mission aircraft in the medium term, or even as an executive transport aircraft for VVIP movement cannot be ruled out. But there is unanimous recognition that there is a long and difficult road ahead, one that could be beset with trouble and challenges. But with the government at least signalling its full support, the NCAD programme is upbeat and raring to go. There is also every hope that the current crop of worries blow over soon. SP

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Aircraft

AERO-ENGINES

Firm Orders: A320neo has become the fastestselling commercial aircraft ever

NEWEST NEO What is the secret of the A320neo’s stunning success long before its scheduled entry into service in October 2015? The new version will have over 95 per cent airframe commonality with current models, enabling it to fit seamlessly into the existing A320 family fleet. by Joseph Noronha

PHOTOGRAPH: Airbus

he Airbus A320 is the world’s most popular narrow-body jet, the “most widely sold” category of commercial passenger planes. At least 8,200 A320 family aircraft have been ordered by 350 customers globally. At the end of August last year, the backlog of orders for the A320 stood at a mind-boggling 3,100. Considering that Airbus currently builds 38 A320 twin-jets per month (scheduled to be ramped up to 42 per month), it should keep the company’s factories in Toulouse (France), Hamburg (Germany) and Tianjin (China) humming for years to come. So why did Airbus feel compelled to announce an efficiency improvement package known as the A320neo (new engine option) now? Two factors are significant. First, airlines worldwide are in dire financial straits and are scrambling to cut costs in the face of increasing aviation fuel prices. Second, with climate change becoming ever more important in policy making, aviation-related envi12 • SP’S AIRBUZ • Issue 2 • 2012

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ronmental regulations are expected to become tougher. A major development occurred on January 1 this year when the European Union Emissions Trading Scheme (EU-ETS) went into effect taxing carbon emissions by all aviation users including non-EU aircraft, at a fixed rate above their allotted emissions credits. The airlines now have a stark choice: reduce emissions or pay up. They are clamouring for manufacturers to come to the rescue. So Airbus formulated the A320neo package with the promise of 15 per cent reduction in fuel burn and emissions practically overnight. A truly irresistible offer! Consequently, within a year of its launch on December 1, 2010, the A320neo became the fastest-selling commercial aircraft programme ever and has already secured a total of 1,450 firm orders and commitments. A Neat Neo Package. What is the secret of the A320neo’s stunning success long before its scheduled entry into service

Aircraft

AERO-ENGINES

(EIS) in October 2015? The new version will have over 95 per cent airframe commonality with current models, enabling it to fit seamlessly into the existing A320 family fleet. This is a key consideration for Airbus operators who have received more than 4,900 A320 aircraft as of November 2011. The aircraft comes with the offer of new fuel-efficient engines plus winglets, which Airbus calls ‘sharklets’. Sharklets, which are around 2.5 metres tall, are claimed to increase payload and range, improve take-off performance, and reduce long-haul fuel burn by about 3.5 per cent. Otherwise, the new aircraft is practically the same as the existing A320s with their multifarious advantages, including very high level of reliability (99.7 per cent). Airbus claims that pilots will be ready to fly the A320neo in a couple of hours by doing a simple conversion course on a laptop. The A320neo comes in two variants offering the latest engine technology—Pratt & Whitney’s PurePower PW1100G geared turbofan or CFM International’s leading edge aviation propulsion (LEAP–1A) turbofan. The PW1100G will be the lead engine during the certification process with EIS planned with Qatar Airways in 2015. Its sophisticated gearing system enables the fan to rotate at relatively low speed while the low pressure compressor and turbine operate at relatively higher speed. This increases overall engine efficiency and reduces fuel burn, emissions and noise. The design that is expected to cost $2 billion (`10,000 crore) to develop has fewer engine stages and approximately 1,500 fewer compressor aerofoils which translate to lower weight and reduced maintenance costs. Some experts hail the PurePower PW1000G Geared TurboFan as a “game changer” because it burns 16 per cent less fuel than current engines. Apart from other plaudits, the Time magazine listed it as one of the “50 Best Inventions of 2011” calling it “the most important development in aviation in 2011.” PurePower engines will be built in Pratt & Whitney’s new Mirabel Aerospace Centre in Montreal starting early this year. CFM International’s LEAP-1A, on the other hand, is a conventional design that employs sophisticated composite materials, next-generation 3D aerodynamics and low-emission combustion techniques in the hot-section (core) of the engine to cut fuel consumption. The A320neo with this engine is slated for EIS in 2016. Both CFM and Pratt & Whitney are keen to dominate the narrow-body jet market because 70 per cent of all new commercial aircraft in the next 30 years are predicted to come from that category. And since narrow-body planes are designed for shorthaul markets and take-off and land, and with greater frequency than larger long-distance ones, they generate more revenue from maintenance and retrofitting services that the aero-engine industry relies on to bolster its bottomline. Both engines have an estimated list price of $12 million (`60 crore), although discounts are the norm to win orders. The engines are also expected to be 30 per cent cheaper to maintain than current models because they have fewer parts. IndiGo Airlines became the first to select the PurePowerPW1100G for its 150 A320neo jets on order. Which engine is better? Both PW1100G and the LEAP-1A claim similar performance improvements over existing engines. However, they have remarkably different architecture. While the LEAP-1A is a conventional turbofan that employs advanced aerodynamics and material to boost performance, the PW1000G is an unconventional geared turbofan (GTF) that incorporates several design innovations. That is why it is so difficult for airlines to choose between the two. A couple of years or so down the line the picture should be clearer. Till then, perhaps, it all boils down to loyalty. Airlines that currently fly A320s fitted with CFM56-5

The PurePower PW1000G Geared TurboFan is hailed as a “game changer” as it burns 16 per cent less fuel than current engines engines may be inclined to stick to CFM International ( for the same reason they remain faithful to Airbus), while those operating A320s featuring IAE V2500 engines may be more inclined to choose Pratt’s untried but potentially match-winning offering. Airbus itself is on a rather strong wicket with two engines on offer. If one fails to live up to expectations, there is always the other. Another Duopoly Decade. Much of the global commercial airline fleet is ageing and will soon be in urgent need of replacement. Besides, high oil prices make it imperative for airlines and leasing companies to operate only fuel-efficient aircraft. That is why Airbus and Boeing agree that airlines worldwide will buy about 27,000 new 150-220-seat short/medium-range twinjets in the next 20 years. From a manufacturer’s perspective, an all-new clean-sheet design is a huge challenge as Boeing’s torrid experience with the Boeing B787 Dreamliner development has shown. Re-engining an aircraft is itself a billion-dollar exercise which is time-consuming, risky and technically complex. Airbus obviously decided that the surest way to reach the sweet spot was to undertake a modest overhaul of the highly successful A320 rather than opting for the more ambitious plan of building an all-new plane. The improvements offered on the A319, A320 and A321 models will deliver fuel savings of 15 per cent and additional flight distance of 950 kilometres or the ability to carry two tonnes more payload for a given range. From an environmentalist’s point of view, the A320neo’s fuel savings translate into some 3,600 tonnes less CO2 per aircraft per year. Additionally, the A320neo will provide a double-digit reduction in NOx emission, reduced engine noise and eight per cent lower operating costs. Advanced technologies needed to design and manufacture next-generation passenger aircraft are unlikely to be available before 2025. Therefore, an entirely new narrow-body plane may be ready only by 2030. So the basic A320 design should have a potential production period of 40-plus years, possibly the longest continuous run in history. The Airbus A320’s closest competitor, the Boeing B737, is also doing rather well. Its order backlog stands at 2,100. Boeing’s recently announced response to the A320neo, the B737 MAX, due for EIS in 2017, will be powered by CFM International’s LEAP-X1 engine. Boeing and CFM are comfortable with each other because the CFM56-7B engine powers the B737NG. Boeing’s B737 MAX will burn four per cent less fuel than the Airbus A320neo. Such claims look good on paper, but the next few years will show which plane is truly more fuel-efficient. In the meantime, Embraer has abandoned development of a narrow-body competitor leaving only the Bombardier CSeries (EIS 2014) and Comac C919 (EIS 2016) twin-jets to challenge the duopoly of the Airbus A320 and Boeing B737. Since the CSeries and C919 are yet to gain traction in the market, it is likely to be business as usual for Airbus and Boeing at least for the remainder of the decade. For now, thanks to the A320neo, Airbus seems to be in the lead. SP SP’S AIRBUZ • Issue 2 • 2012 • 13

Air Transport

Finance

Fuelling High The largest constituent of an airline’s operating costs is incurred on ATF. Although this statement is universally applicable across the globe, in India, its impact is even more impairing in as much as the cost of ATF here is more than 50 per cent higher than the global average. by A.K Sachdev

PHOTOGRAPHs: Wikipedia & SP Guide Pubns

t the end of 2011, the trials and tribulations of Kingfisher Airlines reached its zenith. In an interview with CNN-IBN, Vijay Mallya blamed the state governments for the aviation crisis, saying, “I am a strong advocate for the rationalisation of state sales tax on fuel because I don’t think states should be making windfall profits as international crude oil prices rise.” A fair and balanced appraisal of the situation would undoubtedly throw up many other factors contributing to the current pitiable state of not just Kingfisher but all the Indian carriers. For the last five years, airlines have been projecting their wish-list at every possible opportunity to a largely unreceptive establishment with India’s general aviation sector also joining the chorus of protests. A common thread has been the constant refrain about the high user-end cost of aviation fuel in India. Operating Costs of Airlines. The largest constituent of an airline’s operating costs is incurred on aviation turbine fuel (ATF). Although this statement is universally applicable across the globe, in India, its impact is even more impairing as the cost of ATF here is more than 50 per cent higher than the global average. Consequently, while globally, ATF constitutes 30 per cent of operating costs, in India it is 45 per cent. Until 2001, ATF prices in India were regulated through a government-imposed cross-subsidy, which for socio-economic reasons subsidised kerosene and diesel, resulting in higher price for ATF. In April 2001, the Administered Price Mechanism (APM) was set aside and oil companies were accorded the freedom to price ATF based on the price of crude in the international market and actual input costs. ATF prices in India since 2001 have thus fluctuated wildly; retail jet fuel prices rising over 81 per cent between August 2007 and August 2008. Understandably, airlines increased passenger fares affecting growth in traffic and impinging on passenger satisfaction. The only consistency ATF prices have demonstrated is in the fact that they have continued to be much higher than prices prevailing worldwide. Indirectly, cross subsidies still continue to afflict the price of ATF. Dilemma before the States. Even though the APM has been dismantled, the government de facto controls ATF prices. The related infrastructure, hydrants and bulk storage facilities are largely owned by the three government-owned companies, Indian Oil Corporation, Hindustan Petroleum Corporation Limited and Bharat Petroleum. The ‘common carrier’ principle is largely not applicable to infrastructure facilities although Reliance has been per14 • SP’S AIRBUZ • Issue 2 • 2012

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Fuelling Boeing 777: Underground pipes supplying fuel to an Air Austral aircraft

mitted to supply ATF and is doing so at some stations in a limited manner. In response to the growing demand by airlines, especially in the recent past, the government has permitted import of ATF directly by airlines. However, as only limited private infrastructure exists to handle imported ATF, it may be some time before this concession actually impacts airlines. Government-owned oil companies, which control most of the infrastructure currently, are unlikely to cooperate with end users in distributing directly imported oil. And if they do, it will be at high cost, defeating the very purpose of the exercise. States are also not very happy about this and are contemplating a “state entry tax” on the directly imported fuel to compensate for loss of revenue. The avarice on the part of the states is not understandable as the total sales tax collection in respect of ATF is a small percentage, estimated to be one and a half to two per cent of the total levy. A drop in the sales tax to four per cent, as applicable to ‘declared goods’ would not make a big dent in the finances of the state. In fact, the larger volume of air traffic generated by a lower tax regime would adequately compensate for any loss of revenue. Of course, compliance with the industry-wide demand for listing ATF as a “declared goods” will resolve the issue altogether and pacify the industry. Pricing of ATF. The three government-owned oil companies, which compete with each other, have varying input, establishment, marketing and refining costs. However, the ATF prices charged by all the three are higher than the global average and in effect, are cartelised. All the three import crude oil, refine and

Air Transport

Finance

sell ATF to the end user. The import duty on crude is half than ATF. Oil companies, however, follow the “import parity principle” which adds shipping costs and insurance to the internationally traded price of ATF. However, Indian oil companies do not import ATF but only crude. Shipping costs and insurance, which they don’t actually incur but are added on to the final base price, help them make huge profits. The base price of ATF, the price at the refinery gate without the taxes and margins, is only marginally higher, about 10 per cent than the base price in Malaysia or Singapore. However, to this already unreasonable pricing is added the Central excise duty levied by the government which is to the tune of eight per cent. The icing on the cake is the sales tax levied by individual states, the rate varying from four to 33 per cent. Under

the ongoing tax reforms, sales tax is being replaced in the states by value added tax (VAT). However, as VAT is yet to be universally adopted, the term ‘sales tax’ is used here. The average sales tax in India on ATF at 24 per cent is the second highest in the world, second only to 27 per cent in Bangladesh. These two taxes hike up the final selling price nearly 50 per cent from the base price. Indeed, if taxes and duties are added, the retail price of ATF in Delhi and Mumbai, India’s largest aviation hubs is around 60 per cent more than the base price. In comparison, the final prices in Singapore, Malaysia and Dubai are only five per cent higher than the base price. So, is the high price of ATF going to come down in the future? The only way that could happen is if the prices of kerosene and LPG are also liberated from subsidies. Unrelenting Burden. Since 2006, the Indian Government has appointed three high-level committees to recommend

Government-owned oil companies, which control most of the infrastructure currently, are unlikely to cooperate with end users

Even though the APM has been dismantled, the government de facto controls ATF prices how petroleum product prices should be determined. All these committees have reached similar conclusions—that the government should reform fuel price subsidies and use other more effective policies for the welfare of the poor. The first committee was appointed in 2006 at a time when international crude oil prices were climbing and oil companies were losing money. The committee was chaired by C. Rangarajan, former Chairman of the Economic Advisory Council to the Prime Minister, to look at rationalising pricing and taxation of petroleum products. The committee concluded that the government should allow oil companies to set prices based on trade parity, in other words, at international prices and there should be no further interference with the market. The committee also warned that if the government failed to liberalise prices, oil marketing companies would incur huge losses and become non-viable. This is, of course, something that has now taken place. In 2008, as crude oil prices continued to climb and the financial position of oil companies worsened, a second high level committee set up under B.K. Chaturvedi, a former member of the Planning Commission, suggested very strongly that there should be no subsidies on kerosene and liquefied petroleum gas (LPG), and that the poor could be more effectively helped through a smart card or coupon system. In December 2008, there was a window of opportunity when dramatically lower oil prices offered an opportunity for reforms, but the government did not act on these recommendations because of populist political pressure from opposition parties and some allies. In 2009, the third committee headed by Dr K. Parikh, former member of Planning Commission, who in his Integrated Energy Report of 2006, had already recommended the liberalisation of prices of petroleum products and the distribution of subsidised kerosene through a smart card system. This committee also eventually recommended marketbased pricing for petrol and diesel. Most importantly, the Parikh Committee report discredited the reason most commonly given for controlling prices of petroleum products—fear of rise in inflation and price volatility that would adversely affect the poor. In the perception of the committee, as petrol is largely an item of final consumption in India, price increases would not be expected to have much impact on inflation and as it is only consumed by the poor in small amounts and hence liberalisation would not be expected to significantly affect them. A similar conclusion was arrived at in the case of diesel fuel. Indeed, petrol prices were freed in June 2010. While some political leaders of the Congress in the government, especially the Finance and Petroleum Ministers, are currently inclined to implement the Parikh Committee’s recommendations, their allies in the United Progressive Alliance (UPA) Government have not been supportive. According to one informed opinion, the real reason for their reluctance could be that the reform of India’s petroleum subsidies would affect the dealers and wholesalers involved in the distribution of these sensitive products and that their lobby is working overtime to keep rationalisation of petroleum product prices at bay. As a direct consequence of this inability of the Indian Government to scrap petroleum product subsidies, civil aviation is destined to suffer the high cost of ATF in the years to come. SP SP’S AIRBUZ • Issue 2 • 2012 • 15

Air Transport

Airlines

The Way Out The aerospace industry has always been the driver for state-of-the-art technology. India is lagging behind in the sector and indigenisation is the only route that will address this deficiency. The Indian space and missile programmes prove that the capability exists and what is needed is proper direction and will.

by R.S. Makker

PHOTOGRAPH: SP Guide Pubns

espite the fact that there is no dearth of professionally qualified youth having best industrial minds in the world, the civil segment of the Indian aerospace industry has failed to convert potential into performance. This inadequacy is glaring, especially in core areas involving indigenous lead technologies where the scientific community has failed to excel or achieve the requisite performance levels. A critical area where this weakness is manifest is in the design, development and production of indigenous commercial aircraft. Producing a sustainable and successful indigenous aircraft involves high-end technologies and success in this area would propel India into the league of successful industrialised nations. The aerospace industry in India has in the public sector, a military and civil aeroplane design house under the Ministry of Defence Production and a civil aircraft design house under the Council of Scientific Industrial Research (CSIR). The responsibility for vetting of design and for quality control is vested in the Centre for Military Airworthiness and Certification (CEMILAC) for military aircraft and in the Directorate General of Civil Aviation (DGCA) for civil aircraft. The two design houses have some of the best professionals and the wherewithal to design and pro16 • SP’S AIRBUZ • Issue 2 • 2012

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duce aeroplanes. However, despite more than six decades of existence, the Indian aerospace industry is yet to emerge with a successful commercial aeroplane of indigenous design. Brazil, a developing nation like India, began designing commercial aeroplanes in the mid-1960s and today, Embraer has carved a niche for itself in the global commercial regional jet segment. It is believed that representatives of Embraer visited India in the mid1960s to understand how a third world country could set up an aeroplane factory. Given the experience with the indigenous space exploration and missile programmes, it should be quite possible to replicate the successes in the indigenous aerospace industry. It is evident that core competency and the potential exist to excel in high technology areas including integration. However, what needs to be analysed is the factor that ails the indigenous aerospace industry which is unable to deliver the requisite results. Why Indigenisation? The aerospace industry operates at the forefront of technology, industrial production and quality control. Research and development (R&D) in aerospace technology has automatic spin-offs for other technology-driven sectors such as the automobile industry. Successes notched up by the aeronautical design houses will, therefore, provide the much

Air Transport

Airlines

needed impetus in other sectors. Merely setting up of maintenance repair and overhaul (MRO) facility for commercial aircraft driven by cheap labour is not enough. To move ahead, a number of issues need to be addressed not only by the government but also by the leading industrial houses in the country as well. Investment by the government as well as industrial houses in R&D technologically driven sectors is essential for any industrialised nation. Despite the best of human resources available, the Indian aerospace industry has been unable to ‘deliver’. Some of the reasons are as under: l Inclination to opt for complex designs at the outset. l Stringent timelines for completion of designs. l Reluctance to at least licence produce aircraft. l Tendency to widen the scope and adopt an all-inclusivesky-is-the-limit philosophy. l Lack of vision and leadership in the aerospace industry. Complex Designs. Instead of adopting the incremental approach, there is a tendency to select complex or unique designs in the very first attempt or reinvent the wheel. In an effort to virtually reach the moon, the exercise falls well short of the objectives in respect of the desired results, the time frame envisaged or the performance parameters expected. For example, in an effort to produce an aircraft for the flying clubs, instead of a simplistic design, acceptable performance and easy maintainability, the industry opted for an all-composite body and wing. Although the prototype of the aircraft named Hansa was rolled out successfully, by its very nature, aircraft made of composites are difficult to mass produce and certainly not easy to repair. Besides, progress of projects is impeded by the frequent revision of objectives by the user or by other roadblocks. This problem not only ails the civil sector but also the defence sector. The programme to develop a high-performance FADECbased Kaveri aero-engine is behind schedule by over two decades. Patents exist with the CSIR labs for producing large single-piece aircraft components made of composites but the industry does not have the capability to mass produce the developed technology. There is a huge gap between R&D capability and production facilities especially in the private sector. Capability of R&D in developing achievable designs needs to be exploited. Stringent Timelines. In conformity with national trends, there is a tendency to accord unrealistic timelines for projects. The timelines set need to be decided in accordance with the capability of execution of projects and needs to be realistic. There is also a need to have better accountability in respect of targets defined and achievements made. Licensed Production. Over the years, the Hindustan Aeronautics Ltd (HAL) has gained a high degree of confidence and experience in the licensed production of military aircraft. HAL is also producing airframe components such as emergency windows and doors for Airbus aeroplanes. To begin with, this philosophy needs to be replicated in the domain of civil aircraft industry as well. The supporting ancillary industries would gain valuable experience through outsourced work in the production of components thereby progressively upgrading their technological capability to support indigenous designs. In India, there is a huge potential market for regional jets. A joint venture for the licensed manufacture of medium-size regional jets would help in building up indigenous capability through transfer of technology

(ToT). Self-reliance is the best way forward in this sector. Limit the Scope. Driven by rapid obsolescence and galloping technology, the global industrial scene is changing rapidly. If the Indian aerospace industry is to keep pace with the changing environment, it needs a robust R&D capability. There is an imperative need to narrow down and focus on the core competencies rather than unbridled expansion. Failures are not uncommon and are only to be expected. At these junctures, the government should step in to support the aerospace industry and give it the required push. It is only by strengthening core competencies and production technologies that the industry can compete globally. Otherwise, India will remain just a potential customer for the global aerospace industry. The Indian Space Research Programme is a great success story worthy of emulation. Vision and Leadership. The Indian industry has had visionary leaders such as Ratan Tata, N.R. Narayan Murthy, Aziz Premji and Subroto Bagchi, to name a few. Such leaders are badly needed to lead the civil aerospace industry with vision and passion. Being a capital-intensive industry, whole-hearted support from a number of agencies such as the government, industrial houses, quality control agencies and the public is imperative for success. The civil aerospace industry will demand high levels of investment probably equal to the GDP of small countries. But the long term gains which are the spin offs in an

The Indian aerospace industry is yet to emerge with a successful commercial aeroplane of indigenous design overall sense, need to be kept in mind. This mandates good foresight and visionary leadership. From the very beginning, the Indian Space Research Organisation (ISRO) has maintained a clear focus and in the last decade or so, it has become one of the world’s most successful space exploration agencies. Similarly, the missile development programme of the Defence Research and Development Organisation (DRDO), another government-run agency has also been highly successful. Both these institutions have had visionary leadership and the right attitude for goal achievement. The R&D effort in cryogenic motors, composites and other materials used in space vehicles, have symbiotically helped develop several other industries successfully. The civil aerospace industry ought to draw lessons from these two examples and move forward to produce the first indigenous civil aircraft in the near future. The Final Word. The aerospace industry has always been the driver for state-of-the-art technology. India is lagging behind in this sector and indigenisation is the only route that will address this deficiency. Indian design houses need to come up with realistic and achievable designs and the industry must have the will to translate designs into products. Leadership and government support will be crucial to the success of the aerospace industry. The Indian space and missile programmes prove that the capability exists and what is needed is proper direction and will. SP SP’S AIRBUZ • Issue 2 • 2012 • 17

Infrastructure

INTERVIEW

‘Greenfield airports will be executed under PPP and hence there will be no difficulty in land acquisition’

PHOTOGRAPH: Vincent Chan

V.P. Agrawal, Chairman, Airports Authority of India (AAI), has embarked on a mission to bring about perceivable change in Indian airport infrastructure to bring it on par with the best in the world. In an interview with SP’s AirBuz, he shares his dream of creating airport infrastructure in the remotest corner of the country providing nationwide connectivity and ensuring that our countrymen in the far-flung areas benefit from development and contribute to economic growth. SP’s AirBuz (SP’s): You have completed three years in office as Chairman, AAI. Can you highlight the major challenges that you have faced during this period and your accomplishments? V.P. Agrawal (Agrawal): Three long years have gone and one doesn’t realise how time flies, especially since one is extremely preoccupied in executing the tasks on hand. These years have not only been challenging but exciting too. I have been able to successfully negotiate the challenges as I was baptised under the turbulent period of global economic meltdown. We faced the stormy conditions upfront ensuring that it did not affect the ongoing modernisation/development plans. Besides, 2011 can be described as the worst for the Indian civil aviation industry. If one were to extend its generalities to the year that we have just entered, the emerging picture could be even more confusing. It is just that there are too many imponderables which need to be assumed and addressed by authorities at different levels. Or else, it could be a rocky year again notwithstanding all the stakeholders’ optimism to witness a ‘Rocking Year’. The saving grace being that we implicitly followed the axiom “when the going gets tough, the tough get going”; maintaining ‘perseverance’ as the buzz word. This has indeed paid high dividends and the rest is history. Our achievements are not only there to see but in the true sense a testimony of our unflinching dedication and determination to develop world-class airport infrastructure. I would emphasise the circumstances/environment under which airport projects have been executed. All development/modernisation projects 18 • SP’S AIRBUZ • Issue 2 • 2012

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undertaken by AAI are Brownfield and not Greenfield projects. Any major work for modernisation of an airport in operation is always more challenging than a Greenfield airport as no work can be done at the cost of safety, operational efficiency or convenience of the passengers. Greenfield projects also have their own challenges. This I say with experience as AAI has been entrusted with the task of building an airport at Pakyong, Sikkim. Building a Greenfield airport in hilly terrain poses formidable challenges such as levelling hills and filling valleys. Notwithstanding the challenges, we have succeeded. The altered skylines of the airports with newer, user friendly, world-class terminal buildings are visible but the advancements in CNS-ATM infrastructure is not. It was indeed a herculean task to keep pace with the phenomenal growth in Indian civil aviation in the last decade as the density of air traffic increased significantly. The latest technologies were inducted, and procedures redefined to meet the requirements, changed the scenario. The achievements by AAI in CNS/ATM were appreciated at the 22nd Meeting of ICAO Asia-Pacific Air Navigation Planning and Implementation Regional Group held at Bangkok in September 2011, wherein, the general consensus was that all member states ought to take advice of AAI and follow suit. Our dream project i.e. satellite-based navigation system GAGAN, which is in an advanced stage, has provided entry into the elite group comprising USA, UK, Japan and India. AAI’s accomplishments are an ideal catalyst to instil the sense of pride. Permit me to

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share a compliment from an authority, “The magnificent work done by AAI makes you stand out.” SP’s: What is the present position regarding the development of 35 non-metro airports? Agrawal: The present position is encouraging as we have completed most of our projects barring a handful which are in the final stages and would be completed this year. SP’s: What progress has been made in respect of air connectivity in the Northeast Region (NER) in the last three years? Agrawal: In the last three years, there has been a perceivable change in the NER. Due emphasis is being laid on both inter and intra connectivity for which Guwahati is being developed as ‘interregional’ hub. Agartala, Imphal and Dibrugarh are being developed

for all-weather operation: Shillong Airport

A number of not-in-use airports in the region are being operationalised to enhance connectivity in the NER

as ‘intra-regional’ hubs’. More importantly, airports in that region are being upgraded and provided with night landing facilities. Shillong airport will be made capable for all-weather operation by A-321 type of aircraft. Dibrugarh runway is being extended so as to enable the airline to offset the load penalty imposed by runway of inadequate length and reduce operating cost. For better connectivity in NER, AAI is constructing a Greenfield airport at Pakyong, Sikkim, which would cater to ATR-72 type of aircraft. Work is likely to be completed by December 2013. Greenfield airports at Itanagar in Arunachal Pradesh and Chiethu in Nagaland are also on the cards. 20 • SP’S AIRBUZ • Issue 2 • 2012

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A number of not-in-use airports in the region are being operationalised to enhance connectivity in the NER. These airports are Tezu, Daparizo, Along, Zira, Passighat, Kamalpur, Rupsi, etc. Work for development of Tezu airport has already begun and is likely to be completed in December 2013. SP’s: During the US-India Aviation Summit 2011 it was stated that after 35 non-metro airports, another 30 have been identified for development. Can you please name some of these and indicate the time frame for execution of this plan? Agrawal: In addition to the 35 non-metro airports, the development programme is for 23 airports, not 30. The airports identified for modernisation/upgrade are Rajkot, Agatti, Gondia, Hubli, Belgaum, Dimapur, Jammu, Patna, Rajahmundry, Vijayawada, Kullu, Cooch Behar, Silchar, Jaisalmer, Leh, Tuticorin, Tirupati, Cuddapah, Warangal, Bagdogra, Pantnagar and Pondicherry. Work has since commenced and is expected to be completed by the end of next calendar year. SP’s: In the US-India Aviation Summit 2011, it was also stated that 14 Greenfield airports are under development. Land acquisition being a politically sensitive issue, has AAI encountered any difficulty in this regard? What is the current status in this segment? Agrawal: The Greenfield airports which are to be developed are those where the concerned state governments have indicated their interest based on their intent to boost tourism and industrial/economic growth. There can therefore be no impediment political or otherwise in land acquisition/allocation. Moreover, Greenfield airports will be executed under the PPP and hence the perception of any difficulties likely to be encountered in land acquisition is misplaced. SP’s: During the summit it was evident that the American counterparts were impressed by the huge investment opportunities in India. Is there any action being contemplated to reform the existing regulatory mechanisms to make them more investor-friendly and bring them in line with international standards? Agrawal: India being a vast country with multifarious assets such as cheap labour, plethora of world standard technical/business administrative acumen/expertise available, can rise to the occasion and meet the aspirations of a dynamic entrepreneur. The most important advantage that can be exploited is the wide range of airports excluding the metros to pick from and to establish their base. I exclude metros for two reasons. Firstly, at any metro airport, availability of land in the city for setting up a business venture would be a problem. Secondly, the price would be exorbitant. We can offer over 100 airports to choose from, especially in some enterprising states to commence business venture, which will be a win-win proposition for all concerned. As regards reforming the existing mechanism in our area of responsibility, I am afraid we at AAI have no hold on regulatory mechanism for we are only service providers and not a regulatory body. The interested entrepreneurs would perforce have to get themselves familiarised with not only the rules/regulations related to their core business but also business ethics as prevailing in the industry in India. We at AAI would not be found short on providing the services related to our field. SP (To be continued)

connectivity

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INFRASTRUCTURE

AIRLINES

Centres of Attraction

Soaring UDF: AirAsia pulled out of Rajiv Gandhi International Aiport, Hyderabad because of excessive fees

Though the challenges might seem great, there is tremendous opportunity to make India an international travel-and-transit hub, provided government and industry work in unison to make the country’s airports true centres of excellence—attractive to domestic and international airlines and passengers alike by Joseph Noronha

PHOTOGRAPH: SP Guide Pubns

he commercial airline industry in India is a study in contrasts. According to the International Air Transport Association (IATA), growth in the domestic aviation market is the strongest in the world, which has tripled in the past five years. Over the last decade, domestic air traffic quadrupled from 13 million to 52 million yearly, while international traffic more than tripled to 38 million travellers. This decade is also predicted to be as exciting with domestic travellers surging to 160-180 million and international numbers exceeding 80 million. If the forecast is sound, it would be enough to propel India into third spot on the global aviation stage. And yet, despite these impressive figures, the industry is in a colossal mess. Indian carriers stand to lose an estimated $2.5 billion (`12,500 crore) in the financial year ending March 31, 2012. This amounts to around a third of worldwide losses, even though the country’s airlines carry just two per cent of the global traffic. Every airline, with the possible exception of IndiGo, is running at a loss. Their debts are crippling. Kingfisher Airlines is just managing to keep its head above water. As for Air India, government 22 • SP’S AIRBUZ • Issue 2 • 2012

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largesse at the cost of the long-suffering taxpayer continues to preserve it on its profligate path, but for how long? Big Growth. The problems afflicting the airline industry seem grave but the heartening aspect is that all indicators are favourable for continued growth. A burgeoning middle class with higher discretionary incomes is eager to exchange the rigours of rail and road travel for the luxury of flying. Much of the current passenger traffic originates in the metros and larger cities. However, as the benefits of an expanding economy touches more distant regions, there is growing demand for aviation services from smaller cities, and aviation penetration is steadily rising. Business travel is also increasing. Since India is located at the geographical crossroads, it attracts a great deal of international traffic as well. India has bilateral air services agreements with 108 countries and 87 foreign airlines already operate to various destinations in India. Five Indian carriers fly to 40 countries. Air India has been flying overseas for decades, and is still the largest Indian carrier in the international market with 38 per cent seat share. Private carriers got into the act only from 2004 and are steadily improving their

INFRASTRUCTURE

AIRLINES

market share. However, they mainly frequent tried-and-tested routes rather than venturing to explore the potential of new destinations. Their international expansion is also stymied by the government’s skewed allocation of traffic rights designed to protect Air India. Since Air India itself has limited capability to operate new routes, the only winners, it appears, are the foreign airlines. The Hub of the Matter. Indian businesses are increasingly plugging in to the global economy and thriving on rapid travel between domestic economic centres and their overseas trading partners. But international traffic needs to be attracted by the availability of good transit hubs. And hubs do not just happen, they must be carefully crafted. A good aviation hub should be capable of all-weather operations. It should have ample parking bays and should facilitate smooth and speedy processing of aircraft, passengers and baggage. Without unnecessary expensive infrastructure it should have good functional efficiency. The airport management should have a strong entrepreneurial outlook and the ability to generate revenue and keep the hub viable without making passengers feel the pinch. Airports have a range of non-aeronautical revenue options to set their cash registers ringing. What better way to make travellers happy than by attractive shopping facilities and well-appointed food courts? For passengers who wish to sally forth into the city before catching a connecting flight, there should be good airport transit services—road, rail or metro. At present, only the country’s largest airports meet the definition of an aviation hub. However, they are vastly inadequate to meet anticipated domestic and international traffic. Other airports too need to be brought up to the mark so as to persuade transit traffic to avoid the congested metros. The government’s role in making the country an aviation hub cannot be overstated. Only the government commands the massive resources needed to improve airport infrastructure and air traffic management capability. It would be churlish to deny the sterling effort put in by the government and the Airports Authority of India (AAI) to improve facilities in the metro and 35 important non-metro airports. But why do the authorities always seem to be playing catch-up with past demand, rather than taking a long-term view? Off-and-on hopes are raised of 500 airports by 2020, but the political will to make things happen in the face of local opposition appears lacking. It is also the government that fixes many input prices through taxes and fees. An important characteristic of the airport business is that an increase in the demand for flights from a particular airport increases the demand for related goods and services and rental property at that airport, thus putting it on the path to economic viability. The airport makes money from the services it provides to transit passengers and to the airlines that bring them. The city where the airport is located benefits because the increased transit traffic justifies more direct flights to a range of destinations. Increasing flight traffic, not charges, is the only sustainable way to improve airport utilisation and revenues. Yet the authorities seem to prefer soaking the airlines via high airport charges and taxes. An

Increasing flight traffic, not charges, is the only sustainable way to improve airport utilisation and revenues

India has the potential to become an international MRO hub due to its growing aircraft fleet, strategic location and ample availability of talent international airline doing preliminary planning for a route, say between Europe and Australia, may survey a range of options such as Dubai, Mumbai, Chennai, Colombo and Singapore as a transit halt. It will probably choose the airport with the best facilities and the lowest charges. Currently, just 7.5 per cent of the passengers using Delhi are in transit, although the airport hopes to increase this to over 25 per cent within five years. In contrast, perhaps half the passengers at airports in Singapore and Dubai are in transit, contributing 30 per cent to the total airport sales. Recently, the AAI, which operates 125 airports (86 operational), filed a tariff proposal with the Airport Economic Regulatory Authority (AERA), for an increase in airport charges ranging from 100 to 400 per cent. Like the proposed hike of airport charges through a user development fee (UDF) at Delhi, such moves are counterproductive. India could well find itself priced out of consideration as an international transit hub. Already, leading airlines like Deutsche Lufthansa, KLM Royal Dutch Airlines, British Airways and Air France-KLM, are threatening to reduce or cease services out of Delhi airport citing high tariffs. Last year, AirAsia pulled out of Hyderabad airport because of excessive fees. The other bugbear is the high cost of aviation turbine fuel (ATF), a clear and present disincentive to airlines. ATF now accounts for perhaps 45 per cent of an Indian carrier’s operating expenses—far more than the 25 per cent global average. Naturally, because the average sales tax in India is the second highest in the world at 24 per cent. While international carriers are not subject to state-level taxes, even they pay nearly 16 per cent more than the global average. Such steep differentials promote the wasteful lifting of ATF from cheaper but more distant sources. Experts feel that it is high time the government decided to tax ATF at the basic rate of four per cent by treating it as ‘declared goods’. Opportunity Knocks. Aviation directly benefits many sectors of the economy by creating jobs and generating revenue. It also triggers significant infrastructure and investment opportunities, not just for fleet growth, but towards airport construction, ATM technology enhancement and maintenance, repair and overhaul (MRO) development. Travel facilitation can work wonders in boosting tourism demand. Issuing visa-on-arrival to visitors usually yields immediate results in terms of increased tourism and enhanced air traffic. Permitting FDI by foreign airlines and allowing more Indian carriers to fly overseas by utilising the full quota of bilateral agreements could also be a catalyst in making the country an international hub. Friendly and helpful customs and security staff are the icing on the cake. Further, India has the potential to become an international MRO hub due to its growing aircraft fleet, strategic location and ample availability of talent. Though the challenges might seem great, there is tremendous opportunity to make India an international travel-andtransit hub, provided government and industry work in unison to make the country’s airports true centres of excellence—attractive to domestic and international airlines and passengers alike. SP SP’S AIRBUZ • Issue 2 • 2012 • 23

INFRASTRUCTURE

REGIONAL AVIATION

UNTAPPED POTENTIAL Reports indicate that a majority of flights operate either between state capitals or to metros. Quite evident from these statistics is the opportunity that lies slumbering in the form of airports or airstrips that can be commissioned in the future. by A.K Sachdev

he last five years have been turbulent for Indian civil aviation. Airline and aircraft operators have had wobbly trajectories, although statistically speaking the domestic aviation market has grown in a wholesome manner, displaying an 85 per cent upward leap since end 2006. However, this impressive growth has not translated into profits for the major stakeholders in civil aviation. The Centre for Asia Pacific Aviation estimates that the total losses incurred by all the Indian carriers combined for the financial year 2011-12, will be `12,500 crore. In the domestic market, every time a passenger boards an aircraft, India’s airlines lose around `1,200-1,500 owing to high cost of aviation fuel, steep tax rates, inadequate infrastructure and highly competitive domestic market characterised by aggressive and at times, predatory pricing. The result has been an unfavourable yield-cost ratio leading to losses. A major role has been played by the stunted development of regional aviation whose potential represents lucrative options for investment.

PHOTOGRAPHs: IATA & Bombardier

Inadequate Connectivity. End December 2011, D.S Rawat, Secretary-General, Associated Chambers of Commerce and Industry of India (ASSOCHAM), formulated an eight-point strategy for the Indian aviation sector. The document included upgradation of airport infrastructure and the development of an infrastructure fund to construct airports in Tier-II/Tier-III cities. According to a commentary in Mid Day, a recent report prepared by the Ministry of Civil Aviation has made some startling revelations about the regional aviation pattern in India. The report indicates that a mere 14 per cent of scheduled flights which operate in the country cater to a massive 55 per cent of the total population and that the states of Haryana, Sikkim, Puducherry, Dadra and Nagar Haveli have almost zero connectivity. Also, 11 states including Uttar Pradesh, Uttarakhand, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan, Meghalaya and Odisha are catered to by only 14 per cent of total 12,000 weekly domestic flights. The report also reveals that a majority of flights operate either between state capitals or to metros. Quite evident from these statistics is the opportunity that lies slumbering in the form of airports or airstrips that can be commissioned in the future. Modernising Airports. Till 2006, India’s airports were dreary, shabby and archaic lacking in proper passenger facilities. Fortunately, the government realised that as long as the Airports Authority of India (AAI) had the responsibility to develop and maintain airports, their standard would remain mediocre. Even today, only a small fraction of AAI’s operations are profitable with many airports incurring heavy losses because of high operating 24 • SP’S AIRBUZ • Issue 2 • 2012

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costs. The government embarked on a multi-billion dollar airport modernisation programme based on the public-private partnership (PPP) model to upgrade and develop the country’s two main airports—Mumbai and Delhi—as well as construct Greenfield airports at Bangalore and Hyderabad. Kochi, the first private airport in India, was developed privately. The government has plans for a further investment of `42,500 crore for the development of other airports. Nearly half has been committed for upgrading metro airports at Kolkata, Chennai and Trivandrum. The rest will be invested in other non-metro airports and in the modernisation of existing facilities. The remaining 121 airports and 329 airstrips are still run by the AAI but most are in dire need of investment in infrastructure. ASSOCHAM has been calling for creating an environment for attracting investments for infrastructure development. It projects that airports will require an investment of `67,500 crore during the 12th Five Year Plan (2012-17), of which `50,000 crore will be the share of the private sector. In a step towards that direction, the state-run IDBI Bank is launching the country’s first Infrastructure Debt Fund (IDF) to raise `25,000 crore for building

India is missing out on the potential of aviation as a result of a policy framework that does not support aviation’s competitiveness. - Tony Tyler, Director General & CEO, IATA

INFRASTRUCTURE

REGIONAL AVIATION

airports. Such debt funds can be floated through non-banking finance companies (NBFC) or as trusts. IDBI Bank has sought the Reserve Bank of India’s approval for an NBFC, which will have a capital base of `1,000 crore. The bank will hold 30 per cent stake in the NBFC and the rest will be held by some state-run banks and the Life Insurance Corporation (LIC) of India. The new entity under the relaxed norms can provide long-term debt of over `25,000 crore in the infrastructure sector. As IDF-NBFC, it can invest in PPP projects. Meanwhile, the AAI has drawn up an ambitious plan for expansion and improvement of airports. Some of the current projects are the major airports of Assam including the Lokapriya Gopinath Bordoloi International Airport at Guwahati. As per reports, the Assam Chief Minister Tarun Gogoi has met the AAI Chairman V.P. Agrawal and discussed the development of airports in the state. The AAI chief is known to have updated him about the recent developments and steps by the AAI for the construction of a new integrated terminal building and taxi track at the airport in Guwahati and the expansion of the Rowriah Airport in Jorhat as it has tremendous scope for growth. In addition, expansion of the Lilabari Airportat North Lakhimpur and revival of the Rupshi Airport at Dhubri are also under consideration. Night landing facilities are also being planned for airports at Guwahati, Mohanbari and Dibrugarh. Elsewhere, the holy city of Deogarh in Jharkhand will soon figure on the country’s air map as the AAI has decided to set up an airport there and a memorandum of understanding (MoU) has recently been signed between the AAI and the Jharkhand Government. Several other projects are also under active consideration. Non-Aeronautical Revenue. Associated with the development of airports is the significant upside potential in nonaeronautical revenue. In the year 2006, the last year in which all metro airports were operated by the AAI, non-aeronautical activities generated just 15.1 per cent of total revenue, compared with around 50 per cent or more being achieved by commercially driven airports in other parts of the world. The results since then indicate that optimism about the revenue growth potential was wellplaced. In the last five years, total non-aeronautical revenue generated across all airports in the country has grown by more than 340 per cent from `490 crore to `2,160 crore. Admittedly, 91 per cent of this growth has been driven by the four PPP metro airports at Delhi, Mumbai, Bengaluru and Hyderabad. However, the difference in the commercial approach of the AAI and the four PPP airports is starkly visible from an analysis of the non-aeronautical share of total revenue. All of the PPP airports have increased their nonaeronautical revenues to at least 35 per cent of the total revenue. In the case of Delhi and Hyderabad airports, it is more than 45 per cent. However, in the case of AAI airports, it has risen by less than a couple of percentage points over the last five years to reach just 17 per cent. Thus, there exists huge but unrealised potential for nonaeronautical revenue growth at the AAI airports. Regional Airlines. On December 31, 2011, six prospective regional carriers were given no objection certificates (NOC) by the government, while several others continue to wait in the wings. According to an estimate by Embraer, driven by a growing appetite among Indian carriers to serve regional routes, there is a market for 250 regional jets with a capacity of up to 120 seats. SpiceJet has ordered 15 Bombardier Q400s, but the majority of regional aircraft flying or on order in India are the ATRs. As fuel in India is more expensive than the world average, operating costs

of regional carriers are high. Besides, many of the airports in the smaller cities have relatively short runways unsuitable for jet aircraft such as the Boeing 737/Airbus 320. According to one estimate, around 250 low-to-medium density routes remain unused, as they are not profitable to run with narrow-body jets. Beyond the major Indian cities, more than a hundred routes have a frequency of less than one flight per day. Gujarat has, in recent times, become an attractive state for regional airlines. Due to a technical hitch, Deccan Charters Limited was not permitted to start an airline there in July last year, but two other operators are planning to start soon. These are Luan Airways which plans to set up shop in Surat, and Ventura Airlines, which will be based in Ahmedabad. The other regional airlines waiting to begin operations are Karina Airlines International Limited, Air Pegasus, Religare and Deccan Charters Limited. While Air Pegasus is to ply between Cochin, Bengaluru, Hyderabad, Chennai, Kozhikode, Madurai, Coimbatore and other Tier-II and Tier-III cities in the south, Karina Airlines has applied for routes like Delhi-Dehradun-Gauchar-Pantnagar and Jaipur-Jodhpur-Udaipur. Religare is looking at routes like Delhi-Chandigarh-Amritsar and Ludhiana while Deccan Charters is contemplating operations on routes in Ahmedabad-Surat-Kandla-Porbandar areas. Regional services as a concept have not taken off in the past. At least 18 operators have applied for regional services since 2007 and seven were given the NOC. But somehow, none of them survive in the market owing to a combination of bureaucratic and economic reasons. However, the regional market has a substantial upside which still needs to be exploited and thus represents lucrative investment potential. Need for Competition. India is different from most other countries and even small towns have huge populations. Tony Tyler, Director General and CEO of International Air Transport Association (IATA) feels that India is one market that is missing out on the potential of aviation as a result of a policy framework that does not support aviation’s competitiveness. IATA has asked governments of countries like India, which have huge unrealised potential in aviation, to use the sector as a strategic asset and devise policies that spur competition. It remains to be seen whether such policy changes come about in the future. If they do, the investment potential in regional aviation will be substantial, especially as the metros are already saturated. SP SP’S AIRBUZ • Issue 2 • 2012 • 25

ONE-TO-ONE

ATR CEO

‘India still has strong and untapped potential ahead’

PHOTOGRAPHs: ATR

There are 60 aircraft flying across India and the company estimates that there is room for more than 200 additional ATRs in the coming years. In an interview with SP’s AirBuz, Filippo Bagnato, Chief Executive Officer, ATR, stated that ATR product performs safely in Indian environment and can be the perfect aircraft. SP’s AirBuz (SP’s): Regional aircraft from ATR have been extremely popular in India since their introduction into the Indian market in 1999. What in your view are the reasons for the resounding success? Filippo Bagnato (Bagnato): The development of the Indian economy in the few last years is strongly associated with the development of transportation, and new air services are bringing substantial increase of connectivity into regions that traditionally had low transportation infrastructures. In the context of economic growth and development of air networks across the country, ATRs perfectly match the Indian carriers’ requirements. ATRs have the lowest fuel, maintenance and operating costs among all regional aircraft. When compared to other turboprop aircraft on an average route of 240 nm, an ATR can help Indian carriers save about $1.2 million (`6 crore) . This means that ATRs bring airlines the possibility of proposing optimised rates to an increasing number of passengers and continue developing regional networks. Also, ATRs have contributed in bringing regional air connectivity to small airfields with low levels of infrastructure or to tough runways. These outstanding operational performances are combined with high levels of passenger comfort inside the cabin, which has contributed to further increase in popularity of the ATRs across India. We have set up customer support facilities in India (with one office in Bangalore and several representatives on the major Indian metros), so Indian carriers can rely on ATR’s knowledge and close presence on their day-to-day operations SP’s: What is the perception of ATR about the potential of the regional aviation market in India over the next 25 years? 26 • SP’S AIRBUZ • Issue 2 • 2012

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Bagnato: India, as one of the most dynamics markets in the world, has strongly contributed to the expansion of ATR in the recent years and has still strong and untapped potential ahead. We have today 60 aircraft flying across the country and we estimate that there is room for more than 200 additional ATRs in the coming years. SP’s: What steps has ATR taken or is contemplating to take in order to retain its dominant position in the Indian mar-

ONE-TO-ONE

ATR CEO

ket consequent to the induction of a competitor, the Bombardier Q400? Bagnato: The ATR largely remains the most popular regional aircraft in India, and is highly appreciated by passengers. There are 60 ATRs versus 15 Q-400s in the country. Also, we have five operators across the country, while Bombardier has one. We have been the first aircraft manufacturer to have in the country, since 2006, a fully dedicated customer support centre to help the airlines operations. To retain our position in the market and even increase it, we are constantly improving our products and our services in terms of latest technology and cost-effective solutions. Our new ATR -600 series aircraft—certified and being delivered since last year—is today the most updated and technologically advanced aircraft, both from a passenger and pilot point of views. Their new standard PW127M engines bring increased performances in hot and high environments, and the aircraft continues to feature the lowest operating costs of the market. Because of these reasons, we are convinced that we are optimally positioned to keep ATR as the preferred option for Indian regional operations. SP’s: Does ATR plan to foray into the pure jet regional aviation market and if not, why not? Bagnato: Jet aircraft is not in our category and worldwide regional aircraft sales in the last few years show that regional jets tend to concentrate on the above 90-seat market as it becomes more and more difficult to operate them profitably under this seat category. We estimate a demand for more than 3,000 turboprops in the next two decades. There is a huge market for the type of aircraft for which we have developed a more than 30-year manufacturing experience. SP’s: What are the plans of ATR for regional aviation aircraft beyond the ATR-600 series? Bagnato: There is a worldwide trend showing airlines going towards larger capacity aircraft to cope with traffic increases and to reduce seat costs. We see this trend also in the regional turboprop market and we estimate that among the expected demand for 3,000 turboprops, one-third will be on the 90-seat category. We are working closely with engine manufacturers and other suppliers to evaluate the development of a larger-capacity aircraft Profile Filippo Bagnato began his career in Aeritalia (Alenia since 1990) after achieving his aeronautical and aerospace degrees in 1973. He was assigned head of Aeritalia’s Space Facility in Turin, in 1981. In 1987, he was appointed Director for Programs of the Military Aircraft Division of Aeritalia before he headed the Military Aircraft Division of Alenia, until 1994. He became head of Alenia’s Aeronautics Division in 1996 and in September 2002 was appointed CEO of Eurofighter GMBH in Munich. In June 2004, he was named CEO of ATR, until May 2007, when he became Chairman of the Board of Directors of ATR. On October 1, 2007, he was appointed Executive Vice President of the Technical, Industrial and Commercial Development Central Department of Finmeccanica, and in June 2010, he was reappointed as CEO of ATR. SP

which would feature lower cost per seat and further increased performances and comfort. SP’s: What measures have ATR adopted or is contemplating to address the ever increasing environmental concerns? Bagnato: I will give you a clear figure. If you operate a fleet of ten ATRs instead of an equivalent-sized fleet of regional jets on an Indian typical sector of 240 Nm, fuel burnt differences will make you save more than 50,000 tonnes of CO2 each year, which the equivalent of removing 10,000 cars off the road per year. If you compare with an equivalent fleet of Q-400s, you reach savings of 25,000 tonnes of CO2. Besides this, we have been the first regional aircraft manufacturer to be certified ISO14001, regarding environmental friendliness, on the whole lifecycle of the aircraft, from design to dismantling. SP’s: What is the economics of operating ATR aircraft for domestic air cargo segment of the airline industry in India? Bagnato: ATR’s success extends through several cargo operations worldwide by major companies such as DHL, FEDEX and UPS, and in India, with Deccan 360 and Quikjet, underlining the strong residual value of the ATR aircraft for cargo operations. As for passenger operations, ATRs bring substantial savings in operating and maintenance costs. And, at the same time, ATR’s fuselage structure enables that no specific loader is required to upload or download the aircraft, making it more attractive and viable for smaller airports with low levels of service and infrastructures. SP’s: What is the state of maintenance, repair and overhaul (MRO) facilities in India for ATR aircraft operating in India as well as in the region? Bagnato: Since its introduction in the country, ATR has acted as a partner of the airlines. We helped a majority of them develop their own maintenance capabilities; as a result you have today in this region very experienced aircraft engineers. With ATR fleet size that doubled in the past five years and with the launch of low-cost carriers, there has also been a need to develop MRO capabilities outside the airlines. For this reason we have supported the initiative of Indian private companies that have today state-of-the-art components repair facilities and airframe MROs, approved by the Indian DGCA as well as by the European EASA. This allow airlines to greatly reduce their costs by outsourcing and performing their airframe and components maintenance locally while few years ago some aircraft had to fly abroad for major maintenance. SP’s: In your experience what are the specific conditions of this region that ATR aircraft is facing? Bagnato: This is among the biggest and most populated region of the world with specific weather conditions. The challenges that our aircraft faces every day is mainly a hot and humid environment, monsoon season, low airport infrastructures, high utilisation and frequent rotations. Some of the aircraft in this region are flying for almost 10 hours a day; we have totally accumulated more than 6,00,000 flights and our product is able to keep a technical dispatch reliability of more than 99.5 per cent (that means you have a probability of less than one technical delay for every 200 departures). Based on 12 years of practical experience in the Indian region, we do believe that our product performs safely and very well in this environment and can be the perfect aircraft to help the development of the aviation section for our existing and future new airlines. SP SP’S AIRBUZ • Issue 2 • 2012 • 27

Infrastructure

Air Cargo / INTERVIEW

‘There is an urgent need to develop more air freight stations and cargo villages’

PHOTOGRAPHs: Bobba Group

Technocrat V.S. Bobba is the Chairman of the Bengaluru-based Bobba Group of Companies, associated with activities in the field of aviation. With its offices in Bengaluru, Chennai, Kolkata and Hyderabad, the company has a professionally competent and dedicated team of qualified and trained personnel to handle import and export of air cargo. In an interview with B.K. Pandey, Editor, SP’s AirBuz, Bobba shared his perceptions about the air cargo industry. SP’s AirBuz (SP’s): Can you SP’s: How has the air cargo briefly outline the profile of sector fared and what has your company and its hisbeen the rate of growth in tory since inception? this segment since the boom V.S. Bobba (Bobba): The in the civil aviation industry first company established in began in 2004? 1993 under the Bobba Group Bobba: The sector has fared with offices in Chennai, Kolwell growing at an average of kata and Bengaluru; was approximately 10 per cent year Bobba Aviation Services Pvt. on year except during the peLtd. It was the General Sales riod of global economic downAgent for Lufthansa German turn of 2008–09, wherein the Airlines’ Cargo Division, for sector was down marginally by Southern and Eastern India. one per cent. In the wake of ecoThe office in Hyderabad was nomic recovery, in 2010-11, the opened in May 1996 to cater sector grew by 12 per cent anto the growing pharmacy innually. Thereafter, with current dustry. The group commands re-evaluation and export uncerexcellent reputation with its tainties, the period 2011-12 witprincipals and the trade. Bobnessed only a marginal growth ba Group and Menzies Aviaof three to four per cent. tion PLC entered into a joint venture in cargo operations SP’s: What are the major probThere is urgent need to at Bangalore International lems and impediments that develop more air freight Airport for construction and the air cargo segment of the operation of a cargo wareIndian civil aviation industry stations and cargo house. UK-based Menzies faces both in the domestic villages across India Aviation PLC is a global comand international sectors? pany with over 500 clients Bobba: The air freight industry in cargo, ground and ramp has largely been neglected vis-àhandling at over 100 stations vis the focus on the new terminals in five continents. The new and airport facilities on the pascompany, under the name Menzies Aviation Bobba (Bangalore) senger front. The most significant hurdle to growth and efficiency, Pvt. Ltd, has shareholding of 51 per cent by Bobba Group and however, remains our perennially inadequate and inefficient airport 49 per cent by Menzies Aviation. The two companies entered infrastructure as also the absence of any coordinated initiative to efinto the second joint venture in Ramp and Passenger Handling fect the required changes, improvements, streamlining, rationalisaat GMR Hyderabad International Airport. This company under tion and productivity enhancements so critically required. the name Menzies Bobba Ground Handling Services Pvt. Ltd has 49 per cent shareholding by Bobba Group and 51 per cent SP’s: What specific policy changes and reforms would you suggest to facilitate the growth of the air cargo sector in India? by Menzies Aviation. 28 • SP’S AIRBUZ • Issue 2 • 2012

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Infrastructure

Air Cargo / INTERVIEW

Bobba: Inadequate Infrastructure, slow adoption of technology and unskilled manpower need to be the main focus in line with the country’s economic growth. Systems should be process driven and not individualistic. Working group with representation from the air freight industry has been set up by the Ministry of Civil Aviation to look into the various aspects of the industry. There is an urgent need to develop more air freight stations and cargo villages across India. SP’s: Efforts by different entrepreneurs to set up air cargo operations in India have not met with noteworthy success. What, in your view, were the reasons why one existing air cargo carrier closed down and others who had obtained NOCs have not taken off as yet? Bobba: While I would not like to comment on the reasons for closure or failure to take off by various operators, what is more important is market study, the correct size of the fleet and the right type of aircraft. Short-term plans cannot be successful; this industry needs long-term plans and can survive provided we are ready to face the type of turbulence that the industry has faced in the last three years. Secondly, adequate infrastructure and accessibility needs to be made available for entrepreneurs to succeed. There should be no stringent conditions or restrictions imposed by the government on the number of aircraft or routes. Primarily, cargo airlines need full-fledged handling infrastructure/facilities on exports and imports from a transit-through destination rather than depending on third party handling which is a major cost factor for a new entrant in today’s environment of excess capacity and fierce competition at every major airport in India and abroad. SP’s: What is your perception of the long-term prospects in this segment of the Indian civil aviation industry? Bobba: The sector is growing and will continue to do so. India has established its dominance in telecom, manufacturing and services, hospitality, garments, healthcare and other sectors. The industry has seen a sea change in various products and with the

Adequate infrastructure and accessibility needs to be made available for entrepreneurs to succeed connectivity and faster transits into various parts of the globe with belly and freighter capacity, the cargo industry will grow at a better pace. SP

TREASURE

HOUSE

visit: www.spsmilitaryyearbook.com

SP’S AIRBUZ • Issue 2 • 2012 • 29

Airport

Safety

Smart runway & smart landing For reducing the risk of runway incursions and excursions

by B.K. Pandey

PHOTOGRAPH: Bombardier

ircraft and flight crew operate in complex airport environments every day. They fly in all types of adverse weather and often in limited visibility conditions. They complete the demanding tasks of safe landing and take-off over and over again. All of these tasks demand vigilance and high situational awareness. However, the risk for runway incursions and excursions in this environment is constantly increasing. While the spectre of airline crashes dominates public perception of the risks of air travel on-the-ground, safety is a greater hazard for civil aviation. The cause of runway incursions and excursions is straightforward: heavier traffic, more congestion at airports, often mixed with poor visibility, poor flight crew execution and confusion. Although runway incursions and excursions occur more frequently at the world’s busiest airports, they can happen any30 • SP’S AIRBUZ • Issue 2 • 2012

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where. Runway incursions and excursions happen most often due to a loss of situational awareness, which can also be exacerbated by worker fatigue, unfamiliar and complex airports or even a lack of clear signage on taxiways, among other reasons. Runway safety has long been a concern for aviation safety, but recently the issue has taken centre stage globally with governments, regulators, manufacturers and airlines. In the US, Congress last year, asked industry leaders and government officials to step up efforts in the area of runway safety. In response to the growing concern over runway incursions and excursions, the Federal Aviation Administration (FAA) has formulated short- and long-term plans to address runway safety. This has also been an ongoing issue on the US National Transportation Safety Board’s (NTSB) “most wanted list” since its inception in 1990. Runway safety has also climbed the priority list in Europe and Asia, with a number of international aviation organisations coming together to form the Flight Safety Foundation’s

Airport

Safety

Runway Safety Initiative (RSI) to address the challenge of runway safety. This is an international effort with participants representing Airbus, Airports Council International (ACI), Association of Asia Pacific Airlines (AAPA), Association of European Airlines (AEA), Boeing Commercial Airplanes, Civil Air Navigation Services Organisation (CANSO), Direction Générale de l’Aviation Civile (DGAC) of France, Embraer, EUROCONTROL, European Aviation Safety Agency (EASA), European Regions Airline Association (ERA), International Air Transport Association (IATA), International Civil Aviation Organisation (ICAO), International Federation of Air Line Pilots’ Associations (IFALPA), National Aerospace Laboratory NLR–The Netherlands, FAA and the NTSB. NextGen Enhanced Situational Awareness and Runway Safety. Runway incursions and excursions are a major safety concern that costs the aviation industry $1 billion (`5,000 crore) annually for injuries, inspections and repairs. That is why, Honeywell has developed a new line of SmartRunway and SmartLanding products designed to increase safety during approach, landing, taxi and take-off, by breaking the chain of events leading to a runway incursion or excursion. Building on Honeywell’s extensive experience in the area of runway safety, SmartRunway and SmartLanding offer an expanded number of available alerts and added visual messaging to support both “heads-up” and “quiet cockpit” operations. Both products complement Honeywell’s other safety products, such as electronic flight bags and integrated primary flight displays, but provide the extra comfort of global runway situational awareness. SmartRunway and SmartLanding are available now for airlines and business aviation aircraft currently equipped with Honeywell’s MK V or MK VII enhanced ground proximity warning system (EGPWS). SmartRunway. Honeywell’s new SmartRunway addresses one of the National Transportation Safety Board’s (NTSB) top 10 global safety concerns—runway incursions. One runway incursion happens daily worldwide, at a cost of about $100 million (`500 crore) a year for passenger injuries and aircraft repairs and inspections. SmartRunway, the next generation upgrade of Honeywell’s RAAS, improves situational awareness by providing timely advisories and graphical alerts to the flight crew and advises them of their position during taxi, take-off, final approach, landing and rollout. SmartRunway includes the previous routine and non-routine advisories offered with Honeywell’s RAAS technology with two new advisories and a new graphical alerting feature. Positioned for future growth, SmartRunway will also utilise automated dependent surveillance-broadcast when available. Various configurations of SmartRunway are available to best suit individual operating environments, including volume control and inhibit switches. Honeywell’s SmartRunway also complements EFB solutions, through heads-up aural advisories, and supports quiet cockpits with graphical alerts on the enhanced ground proximity warning system (EGPWS) display. Honeywell’s SmartRunway consists of the same RAAS advisories that are already installed on more than 2,000 business aviation and commercial transport aircraft and capitalises on Honeywell’s worldwide terrain and runway database, which has been proven over 600 million flight hours. SmartLanding. Runway excursions represent 96 per cent of total runway related accidents and 80 per cent of the runway

SP’s AirBuz (SP’s): What is a runway incursion? Honeywell: A runway incursion is any instance on a runway involving an aircraft, vehicle, person or object that creates a collision hazard or results in the loss of a minimum safe distance between aircraft and other objects on the runway surface. SP’s: What is a runway excursion? Honeywell: A runway excursion takes place when an aircraft exits from the runway at the side or the end of the runway. It may result from technical issues, but could also result if an aircraft is landing or taking off on a runway shorter than required. SP’s: Why do Runway Incursions and excursions occur? Honeywell: Runway incursions and excursions have a variety of causes and are often the result of a combination of factors. When there is limited visibility, poor lighting, bad weather, inadequate paint lines, confusing signs or a combination of these, there is a greater risk of an accident. SP

related fatal accidents. They cost the US airlines and business aviation operators approximately $900 million annually over the last 10 years for inspections, repairs and passenger injuries. As a key safety concern for the airline industry, unstable approaches can result in hard landings or excursion incidents or accidents for commercial aircraft. With about 29 global runway excursions each year, errant aircraft approaches are primarily caused by lack of situational awareness. From a pioneer in flight safety, Honeywell’s new SmartLanding provides a cost-effective, near-term solution to address this globally important issue by reducing incident risk and preserving pilot and passenger confidence. Honeywell’s SmartLanding helps reduce the risk of a runway excursion by providing timely alerts to crew members when the aircraft is approaching the runway too high, too fast, or is not configured properly, common components of an unstable approach. The new SmartLanding software package complements Standard Operating Procedures and Flight Operational Quality Assurance programmes to improve safety by encouraging compliance with the following general stabilised approach criteria: l Aircraft should be stable at 1,000 feet above the field l Aircraft MUST be stable at 500 feet above the field l Aircraft is properly configured to land l Aircraft is on the correct vertical path l Aircraft is at the correct speed (available on some platforms) The SmartLanding feature includes callouts for long landing if the aircraft extends beyond a predetermined touchdown zone, together with callouts of runway distance remaining during landing and rollout. Also included is a check for inadvertent barometric altimeter correction errors which have been a contributing factor for incidents and accidents during approach and landing in the past. Honeywell’s SmartRunway and SmartLanding are available today as a simple, low-cost software upgrade to Honeywell’s MK V or MK VII EGPWS, the world renowned safety solution for reducing controlled flight into terrain incidents. Both SmartLanding and SmartRunway require only a minimal amount of aircraft downtime and pilot training. SP SP’S AIRBUZ • Issue 2 • 2012 • 31

Air Transport

Environment

Limiting Emissions Both Airbus and Boeing have decided to re-engine the A320 and B737 respectively

Is carbon-neutral aviation growth achievable? It looks good as a goal to aspire for, but is hard to attain as long as aviation rapidly expands its global footprint.

by Joseph Noronha

PHOTOGRAPH: Boeing

anuary 1, 2012, witnessed perhaps the most significant step taken till date in efforts to limit global aviation emissions. On that day, the European Union (EU) capped aviation greenhouse gas (GHG) emissions in Europe and kick-started an Emissions Trading Scheme (ETS) that applies to all airlines flying to any European destination, irrespective of their country of origin. There have been howls of protest from governments and airlines around the world but for now at least the EU is sticking to its guns. The EU’s go-it-alone measure is intended to spur the adoption of greener technologies and biofuels by the aviation industry. Flying adversely affects the environment mainly because aero engines emit noxious gases that contribute to global warming which in turn is believed to lead to climate change. Turbofan and turboprop engines have steadily become more fuel-efficient yet rapidly growing air travel worldwide contributes to an increase in total emissions attributable to aviation. In the EU alone, GHG emissions from aviation increased by 87 per cent between 1990 and 2006. Boeing estimates at least 90,000 commercial planes fly daily across the globe spewing a variety of toxic gases, water va32 • SP’S AIRBUZ • Issue 2 • 2012

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pour and particulate matter, carbon dioxide (CO2) and nitrogen oxide (NOx) being gases of particular concern. The very high operating temperatures of jet engines create small quantities of NOx that have 300 times more powerful GHG effects than CO2. However, engine designers have largely succeeded in limiting NOx emissions. Hence their focus is on reducing CO2 or carbon emissions. Airliners today are 70 per cent more fuel-efficient than the Boeing B707 and Douglas DC-8 of the 1960s and total aviationrelated CO2 emissions constitute just three per cent of the global GHG emissions. However, as travellers from emerging economies take to the skies in increasing numbers, aviation is today the fastest-growing source of atmospheric pollution. The amount of CO2 emissions from aviation is expected to grow around three to four per cent annually, much faster than the one to two per cent yearly efficiency gains expected by the industry. Consequently, according to the Inter-governmental Panel on Climate Change (IPCC) aviation-related GHG emissions could rise to between five per cent and 15 per cent of the global total by 2050. International Efforts. A global system of aviation emissions control would doubtless be much better than a patch-

Air Transport

Environment

work of competing systems. Back in 1997, the International Civil Aviation Organisation (ICAO), whose membership includes practically every country on earth, was asked to come up with concrete proposals to reduce GHG emissions from air travel. Almost 15 years later, there is little to show for its efforts. However, ICAO now plans to introduce global CO2 standards for new aircraft types by 2013. The standard is likely to emulate its highly successful “Stage” noise yardsticks. ICAO’s stated goal is to cap civil aircraft emissions at 2020 levels and ensure that further aviation growth remains carbon-neutral. It also aims to achieve a two per cent annual increase in fuel efficiency between 2020 and 2050. Carbon-neutral growth, which implies keeping the industry’s net CO2 emissions stable even as demand increases, is a vision shared by the International Air Transport Association (IATA) that represents some 240 airlines comprising 84 per cent of global air traffic. This will be achieved by investing in measures by the industry to cut emissions or by financing projects to cut an equivalent amount of emissions in other industries. However, it depends upon the ICAO setting CO2 emission standards for new aircraft types, governments and fuel companies delivering sustainable aviation biofuels as also governments and air navigation service providers improving air traffic management (ATM) through comprehensive measures such as the Single European Sky and the US NextGen. According to IATA, the key factor in carbon-neutral growth is fleet renewal. The next-generation of aircraft such as the Boeing B787 Dreamliner, Airbus A350 and Bombardier CSeries, are claimed to be 15 to 20 per cent more fuel-efficient than the current generation aircraft. This efficiency is primarily achieved through advanced engine technology, lighter airframe and supporting structures made of composite materials. It is also helped by better aerodynamic design, winglets, a “one-piece” fuselage and more advanced computer systems for optimising routes and payload. Airlines will need to spend around $1.5 trillion (`75,00,000 crore) on new aircraft by 2020, which will result in a 21 per cent reduction in CO2 emissions compared to a situation without fleet renewal. The existing fleet can also become more fuel-efficient by engine retrofits and modification of airframe through the latest technologies. Airlines and airports can also lower emissions through improved operating procedures and weight reduction measures. Some of the more effective methods suggested to cut emissions are reduced auxiliary power unit (APU) usage, single-engine operation on the ground and adopting continuous descent approach (CDA) profile. Full implementation of more efficient ATM and airport infrastructure could provide an additional four per cent emissions reduction globally by 2020, while benefits could be as high as 10 per cent in some regions. However, the ultimate factor in attaining carbon-neutral aviation growth is the introduction of sustainable and commercially-viable alternative fuels. Recent tests on biofuels have indicated that a reduction of 80 per cent of CO2 emissions on a full carbon life-cycle basis is possible. Many biofuels can be mixed with fossil jet fuel and used as drop-in fuels in current engines. As of June 2011, international aviation fuel standards allow commercial airlines to blend conventional jet

Boeing estimates that at least 90,000 commercial planes fly daily across the globe spewing a variety of toxic gases

Improved operating procedures and weight reduction measures can help lower emissions fuel with up to 50 per cent biofuel. Since there are just 1,700 major aviation fuel stations around the world, introducing alternative fuels should be a relatively smooth process. IATA has set a target of 10 per cent alternative fuels by 2017. The biggest challenge, however, is to find enough biomass to assure sufficient production for the aviation sector. A wide portfolio of second or third generation biofuel feedstock such as jatropha, algae and halophytes which do not compete with food crops for fresh water or land will be required. Projects to use municipal solid waste as feedstock to produce aviation fuel may also be beneficial. Improving the supply chain so as to reduce cost is essential to enable biofuel use to become more widespread. But at least for this decade and possibly beyond, high fuel costs as well as competing demands from other sectors of the economy make it unlikely that alternative fuels will deliver the promised aviation-related CO2 reduction. Lastly, according to IATA, in order to close the gap, 90 million tonnes of CO2 will need to be offset by 2025 to cap emissions at 2020 levels and achieve carbon-neutral growth. A Leaner Greener Future. Scientists are increasingly discovering that global warming is happening faster than the most pessimistic forecasts. Consequently, warnings about the consequences of procrastination to mitigate climate change are growing dire by the day. The International Energy Agency (IEA) believes that a global climate deal must be ready by 2017 for any hope that global temperature increase can be kept under control. World leaders have agreed to start work on a new global agreement to be signed in 2015 that would stipulate legally binding emissions cuts beginning 2020. International aviation emissions have been exempt from all treaties and not accounted for in the emissions of any nation so far, but the industry is acutely conscious that this happy state of affairs is unlikely to last much longer. Is carbon-neutral aviation growth achievable? It looks good as a goal to aspire for but is likely to be hard to attain so long as aviation rapidly expands its global footprint. Both Airbus and Boeing have decided to re-engine the A320 and B737 respectively, which means that for the next 20 years or more, fuel-efficiency of narrow-body airliners that constitute 70 per cent of the global air transport fleet, is practically set and there is not much room to introduce better technology. However, according to a National Aeronautics and Space Administration (NASA) study released in January, unconventional configurations could provide dramatic reductions in fuel burn, noise and emissions in the longer term. The study proposes advanced composites to reduce weight, new techniques to improve laminar airflow, ultrahigh bypass engines for more energy efficiency, new combustors to cut harmful emissions and new ways of integrating engines into the airframe to lower noise levels. Provided adequate investments are forthcoming, a suite of such technologies could deliver a new airliner by 2025 which is 40 to 50 per cent more energy efficient and generates 30 to 40 dB lower noise levels than current models, thereby showing the way to a carbon-neutral and carbon-cutting future. SP SP’S AIRBUZ • Issue 2 • 2012 • 33

Training

Profile

Quality Learning Of the two major civil flying training institutes in the country, NFTI has risen to the top in an incredibly short span of three years. It is now the preferred institute not only for aspiring pilots but for private airlines as well.

by Vasuki Prasad

I PHOTOGRAPHs: CAE Global Academy

n 2005, the boom in the airline industry led to the proliferation of flight training schools all over the country. Some of these institutions lacked the basic infrastructure, aircraft and qualified staff, and others bypassed norms due to poor regulatory oversight, leading to a large variation in training quality and standards. Consequently, there was alarming dilution in the overall professional competence and proficiency levels of freshly trained commercial pilots. With demand outstripping supply in the wake of rapid expansion, airlines were not in a position to exercise discretion while hiring pilots and they employed whoever came along provided he or she could produce a Commercial Pilot Licence (CPL). With the discovery of several pilots having obtained civil flying licence by unfair means, it emerged that the licensing system in the Directorate General of Civil Aviation (DGCA) had also been successfully subverted. Undoubtedly, there was and continues to be the need for quality training institutes that can deliver to the standards demanded by the Indian civil aviation industry, especially the airlines. It was with this vision that CAE Global Academy, better known as the National Flying Training Institute (NFTI) was founded at Gondia in Maharashtra. Origins of the school. NFTI, which is a joint venture of CAE and Airports Authority of India with CAE holding 51 per cent, received its no objection certificate (NOC) in December 2008. Flying training commenced in February 2009 and the first CPL was issued on June 30, 2010. NFTI is one of the 11 flight schools under the CAE Global Academy, the largest global ab initio flight school network. The other institute under this organisation is the Indira Gandhi Rashtriya Uran Akademi (IGRUA). The parent company CAE, founded in 1947 and headquartered in Canada, is the world leader in civil aviation training, simulation and services. 34 • SP’S AIRBUZ • Issue 2 • 2012

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According to Suzanne Roy, CAE Global Academy leader, India’s population is huge with a significant need for well-qualified pilots to meet fleet growth in the region. The challenge before the flight schools is to be well positioned to support this growth. NFTI Today. In just three years since its establishment, NFTI has witnessed phenomenal growth. For training, it has nine aircraft including one multi-engine Diamond DA42 ‘Twinstar’ and eight single-engine Diamond DA40 ‘Diamond Star’. The chief flying instructor (CFI) is assisted by six flight instructors and four assistant flight instructors. The maintenance staff is headed by the chief engineer, who is supported by four aircraft maintenance engineers, six technicians, ten apprentices and six helpers. The maintenance staff has strong focus on sound maintenance practices under the watchful eyes of the airworthiness manager ensuring high levels of serviceability of the fleet and air safety. The Ground School located in the administrative building, is manned by the Chief Ground Instructor and four Ground Instructors with instructor-student ratio at a comfortable 1:30 conforming to the DGCA norms. The Ground School has excellent infrastructure including a well-equipped library. Flying training is carried out at Gondia’s Birsi Airport which has a 7,500-foot runway and a variety of radio-navigational aids including Doppler VOR, an NDB and an ILS. Offices of Flight Operations and the Maintenance Wing are located in a single hangar, on opposite sides. The administrative building also houses fixed-base DGCA approved flight simulators, one of the DA40 and the other of the DA42. With a 180-degree horizontal field of view and an instructor station that can simulate virtually any environment, the simulators serve as excellent training aid to practise flying procedures and instrument flying. The campus has decent residential accommodation for trainees and staff as also recreational and medical facilities.

Training

Profile

Quality and Transparent Training. The present capacity at NFTI is for 120 cadets and the duration of the CPL course is 17 months though many cadets complete it in 12 months. In the newly implemented system, cadets initially undergo six weeks of ground training followed by alternate days of flying and ground training thus progressing simultaneously on both fronts. The tests on ground subjects are based on DGCA examination patterns and provide cadets with sufficient practice to clear the written papers in the very first attempt. Dedicated cadets have secured all India ranks between first and fourth in CPL theory examinations. Statistically, around 70 per cent of the trainees at NFTI clear papers in the first attempt. Flying training consists of 185 hours of flying on the singleengine DA40 and 15 hours on the DA42, a multi-engine aircraft. In addition, 30 hours of training is conducted on the DA40 simulator and 20 hours on the DA42 simulator. With its airframe made out of composites, the Diamond aircraft offers a favourable power to weight ratio. Compared to the other basic training aircraft of the same class, the DA40 has a higher speed, better rate of climb and higher cruising altitude providing for greater safety margins. Diamond aircraft have an exemplary safety record which makes them eminently suitable for flying training. The DA40 and the DA42 feature a common engine and Garmin G1000 glass cockpit avionics suite, facilitating both ease of handling and maintenance. The glass cockpit facilitates smooth transition for cadets when they move onto advanced aircraft such as the Airbus A320 or Boeing 737 NG. The average aircraft availability for flying is 93.7 per cent. With two months of monsoons, a six-day working week and interruption due to other reasons such as inordinately high temperatures or fog, annually around 230 days are available for flying. Flying training is usually conducted between 6 a.m. and 6 p.m. and as required for night flying beyond these hours. Cadets slotted to fly for the day attend morning mass briefings followed by a pre-flight briefing by the concerned flight instructor. Post-flight debriefing is meticulously conducted with analysis of errors and suggested corrective measures. Certain weaknesses are ironed out on the simulator. According to Captain J. Sandhu, Flight Instructor and Head, Flight Safety at NFTI, most students get to fly solo at 15 hours after proper grounding in basic flying skills. Other than the CFI, who is a retired officer from the Indian Air Force, all other instructors are from a civilian background. Entry requirements are a minimum of 300 hours of flight instruction and a demonstrated high standard of briefing. Among the instructors currently with NFTI, two underwent flying training in the US, one in Canada and the rest in India. Cadets get to land at the airports of Jabalpur, Raipur and Nagpur. The high traffic density at Raipur and Nagpur provides the needed exposure to a busy radar controlled airspace dominated by faster and heavier aircraft. A very high degree of discipline defines the atmosphere at NFTI, both in the air and on the ground. This is evident from the fact that in the 13,000 hours of flying in the last three years, there have been only two minor incidents, both without significant damage to man or machine. To monitor and track a student’s training, NFTI employs an Education and Training Administration system, a web-based training management system from TALON designed for the management of flight training, curriculum, records, resources, flight scheduling and operations. The system can be accessed by the regulatory body or any agency authorised to do so.

Award of Wings. In order to provide airlines with nothing but world class pilots, NFTI ensures that only the deserving enter the flying institute. The CAE Aircrew Selection System (CASS) is a process that thoroughly profiles the applicant. The first two stages gauge the applicant’s personality and value systems. The third stage is a one-to-one interview where the individual is better understood. The fourth stage tests the applicant’s cognitive and psychomotor skills, multi-tasking ability, alertness, situational awareness and memory capacity. In the end, an applicant is selected based on his score in the CASS test. In June 2011, CAE signed a five-year contract designated as IndiGo Cadet Pilot Programme to train pilots for the Airline. Recruitment for this programme begins with the CASS test after which applicants are put through a group discussion followed by an interview by a panel of selectors from IndiGo. A position in the Airline is guaranteed, provided the cadet completes CPL and type rating within a stipulated time frame of 19 months and achieves a minimum stipulated performance standard. The trainee receives a monthly stipend of `15,000 during the CPL course and `25,000 during type rating. The total course fee is `45 lakh of which `30 lakh is payable in five instalments spread across the course duration, while the balance of `15 lakh needs to be paid only at the time of A320 type rating. The trainee’s performance is constantly monitored by IndiGo. Trainees from the regular CPL course can, upon completion of training, appear for the selection test with IndiGo. On selection, they are sent for self-sponsored A320 type rating at any CAE centre across the world. Qatar Airways is another airline which selects NFTI candidates through the pilot provisioning programme, provided the cadet has cleared all DGCA ATPL papers. With these pilot provisioning programmes, students at NFTI stand the highest chance in the country of securing a flying career with airlines of repute such as IndiGo and Qatar Airways. Growth. By April 2012, the fleet is planned to grow to two DA42 and 12 DA40, and by the end of financial year 2013-14, to three DA42 and 27 DA40 in order to meet the target flying task of 43,000 hours for a batch of 200 cadets. This would amount to 66 per cent rise from the current capacity, entailing corresponding increase in the number of flight instructors, training infrastructure and domestic accommodation. Choosing NFTI. Shib Bannerjee, a married 28-year old, is a Masters in Literature and a MBA. After having worked with HSBC and Standard Chartered, he had made enough money to realise his childhood dream of flying. To Shib, who has family responsibilities, choosing the right flying institute meant everything. Some older men, one as old as 34, who share similar stories, look to NFTI when it comes to investing in their future. Of the two major civil flying training institutes in the country, NFTI has risen to the top in an incredibly short span of three years. It is now the preferred institute not only for aspiring pilots but for private airlines as well. Independent of bureaucratic control, strong focus on quality of training, flexibility in adapting training to meet airline needs and the highest placement record today, sets NFTI apart providing deserving aspirants a means by which they may realise their dreams of flying for an airline. And for well-run airlines such as IndiGo with good safety culture, NFTI is the best solution to realise expansion plans and ensure air safety through investment in quality training. SP SP’S AIRBUZ • Issue 2 • 2012 • 35

show report

singapore airshow 2012 1

Networking Podium Over four trade days, Singapore Airshow 2012 played host to about 900 exhibitors from 50 countries and 266 delegations from 80 countries by SP’s Correspondent

PHOTOGRAPHs: Experia Events, Airbus, CFM, & Pratt&Whitney

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sia’s largest and one of the three most important aerospace and defence exhibitions in the world, Singapore Airshow 2012 had a record number of trade and public visitors. The six-day event from February 14-19, 2012 witnessed about 1,45,000 visitors and the largest ever number of top level delegations. Over four trade days, Singapore Airshow 2012 played host to about 900 exhibitors from 50 countries and 266 delegations from 80 countries who flew to Singapore in order to network, establish partnerships and forge new deals. The aerial displays included show-stopping performances from the Republic of Singapore Air Force (RSAF), the Royal Malaysian Air Force “Smokey Bandits”, the United States Air Force and the Royal Australian Air Force “Roulettes”. Australian pilot Tony Blair of Blair Aerosports also made his debut appearance in the first stunt aerobatic performance in the history of air shows in Singapore. Singapore Airlines also hosted guided tours on one of their last three remaining Boeing 747-400s, which was at the Singapore Airshow to commemorate the retirement of its B747 fleet. The event had a record value of deals announced worth more than $31 billion (`1,55,000 crore) and the major announcements include contracts for Boeing, Airbus, Pratt & Whitney, CFM and ATR. SP

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singapore airshow 2012 5

1, 2, 3. Official opening ceremony and celebrations of the Singapore Airshow 2012 4. Celebrating 100 years of aviation in Singapore 5. Jackie Chan’s $30-million Embraer Legacy 650 lands in Singapore for the Singapore Airshow 2012 6. Singapore Airlines displayed one of last remaining 747-400 aircraft at the airshow 7. Ahamad Alzabin and Jean-Paul Ebanga celebrate Alafco Leap-1A order 8. First-ever appearance of smallest member of Airbus’ corporate jet family – ACJ318 9. Interior of ACJ318

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show report

singapore airshow 2012 1

1. Pratt & Whitney signs a five-year MoU with Singapore Polytechnic at the Singapore Airshow 2012 2. Green Pavillion 3. Static display of aircraft 4. Terma and Honeywell pavilion 5. ST Engineering and CFM pavilions

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IBAE

Report

Enhancing Relationships While offering an array of opportunities to owners, suppliers and operators for promotion of their products and services in the rapidly growing Indian market, the Aviation Expo focused on the removal of bottlenecks to ensure continued growth.

PHOTOGRAPH: IBAE

he third Indian Business Aviation Expo (IBAE), organised by the Exhibitions India Group and MIU Events, was held at the Grand hotel, New Delhi, on February 21-22, 2012. The expo provided a right platform enhancing both domestic and international business relationships and partnerships. Leading industry experts addressed the sessions proposing pragmatic solutions to the key issues related to the sector. The expo witnessed 40 per cent increase in the number of delegates with international participation from 10 countries and presence of 25 national and international speakers. Facts catering to additional business jet fleet and general aviation industry valuation were shared by the industry analysts during the inaugural session. While offering an array of opportunities to owners, suppliers and operators for promotion of their products and services in the rapidly growing Indian market, the expo focused on the removal of bottlenecks to ensure continued growth. Unveiling the white paper titled ”General Aviation–Unfolding Horizons”, Naveen Jindal, Member of Parliament and Chairman and Managing Director, Jindal Steel and Power, felicitated PricewaterhouseCoopers (PwC) for providing a comprehensive report comprising useful and intriguing insights into the industry. “The role of general aviation and business aviation in national building” was highlighted by Jindal. Rohit Kapur, President, Business Aircraft Operators Association (BAOA), and Dhiraj Mathur, Executive Director, PwC Private Ltd, emphasised the tangible issues pertaining to infrastructure. They highlighted the growth of infrastructure in Indian aviation industry and especially in the helicopter sector; need for alternative dedicated general aviation airports in metropolis, airstrips and heliports, and fixed base operators (FBOs) and maintenance repair overhaul (MRO) across the nation. Subjects like “intangible challenges of regulatory framework, connectivity and communication” were analysed and the need for effective and transparent monitoring mechanisms was underlined.

The speakers said that active participation of the industry and the government can ensure India’s place as the third largest market for aviation in next five years. Kapil Kaul, CEO, South Asia, Centre for Asia Pacific Aviation, expressed the need for an increased transparent engagement between all key stakeholders within the sector. While sharing his concerns about demand and development of business aviation in India, he also mentioned the key enablers like training, physical framework, financial institutions, safety and security which require urgent attention. The robust data with both present and projected figures was highlighted, thereby, shedding light on the upswing the sector is expected to experience in the coming years. Todd Hattaway, Regional Sales Director, India, Hawker Beechcraft, introduced MRO basics to the audience and said that the aviation industry is tough but exciting. Phil Jordan, CEO Business Air International, and Aadesh Batra, Managing Director, Hunt and Palmer, were part of the panel discussion on the “role of brokers”. ‘Trustworthy’ and ‘exclusivity’ were termed as key and vital ingredients of a broker along with well-tailored solutions which clients look for while engaging in dealings. The compelling need for integrity between broker and operator was highlighted. Rahul Garg, Executive Director of PwC, made a few recommendations on “careful contracting” and “tightly ring fencing outright sales”. R.M. Bhargava, CEO, Desfab Engineers & Builders, brought forward ground infrastructure conditions. Further, he cited incidents of failure due to inefficient ground equipment, thereby recommending proper designing of hangars for efficient operations and coordination between the personnel manning the hangars. The panelists and participants were unanimous about the urgent need of government participation in the business aviation sector, which will place the Indian aerospace industry in the global arena. SP —By SP’s CORRESPONDENT

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Finally

A Sigh of Relief The whole system of flying training and licensing had been corrupted through a powerful nexus. However, the government has finally demonstrated its will to take positive action to rid the system of the long-standing infirmity.

ven while the airline industry in India is flying through a somewhat prolonged turbulence, its regulatory body, the Directorate General of Civil Aviation (DGCA), has also been in the throes of a crisis of matching, if not greater, intensity. In the first week of March 2012, it came to light that three senior functionaries in the organisation including a Joint Director General, the occupant of the slot immediately below the Director General, have been placed under suspension. Apparently, the somewhat drastic action has been precipitated on the basis of a report on the investigations conducted by the Central Vigilance Commission (CVC), which holds some officials of the DGCA responsible for misdemeanour in the execution of duties assigned to them. Specifically, the report alleges that “undue privileges granted to 28 flying schools caused a loss of `190 crore to the national exchequer”. But the consequences of the malaise in the regulatory body are far more serious than just financial loss to the exchequer of a sum that in the prevailing environment, polluted by monumental scams, can be regarded as paltry. In March last year, the aviation industry in India was rocked by an earth-shattering revelation of the ease with which the regulatory body had been subverted through money power and other corrupt practices that led to unknown number of boys and girls obtaining a Commercial Pilot Licence (CPL) or even an Airline Transport Pilot Licence (ATPL) by fraudulent means. More worrisome for the nation was that pilots with fake licences were already flying with the Indian carriers thereby endangering innocent lives. Till date, the DGCA has issued over 10,000 CPLs and around 4,000 ATPLs. Comprehensive and foolproof scrutiny of all the licences would, by any standards, be a herculean task. As the DGCA initiated this painful exercise of scrutiny of all the CPLs and ATPLs issued till date, the Ministry of Civil Aviation (MoCA) rushed in to allay widespread apprehension amongst the travelling public stating that reports on issue of fake flying licences were highly exaggerated. The MoCA went on to state that in scrutiny of licences, only 13 cases of irregularity in respect of six ATPLs and seven CPLs had, till date, been detected, and that there was really no real cause for any panic. In a simultaneous move, a Director-level officer from DGCA was relieved of his duties for having unduly favoured a close relative to obtain a flying licence 40 • SP’S AIRBUZ • Issue 2 • 2012

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without the requisite qualifications. However, given the depths to which the credibility of the DGCA had sunk, there was bound to be a serious trust deficit and the figure of just 13 cases of fake licence touted by the MoCA was highly suspected and could well be the proverbial tip of the iceberg. On their part, the airline managements were neither taking the assurances from the MoCA at face value nor were they prepared to take chances. They moved quickly to conduct internal scrutiny to establish the bonafides of their own employees and restore faith amongst air passengers. The other area of concern was the 40 odd flying schools, many of them having come up in the wake of the boom in the airline industry beginning 2004. Badly understaffed in respect of flying and ground instructors as well as supervisory staff, poorly equipped with aircraft, infrastructure and training aids, many of the flying schools were actively involved in the fake licence racket. Gross over-logging of flying hours, impersonation in the cockpit, logging flying hours without even entering the cockpit, flying with instructor and logging as solo flight and fudging records of “blind landings” were a few of the malpractices that had been perpetuated at several of the flying schools. The supervisory staff certified fudged records without any qualms, all with the sole aim of securing a flying licence by any means, fair or foul. There was not even an iota of concern for the horrendous impact on air safety. But the malaise was not confined to schools in India alone but existed in the institutions abroad, both in the East and the West that were training commercial pilots for India in large numbers. Tragically, over a period of time, the whole system of flying training and licensing had been corrupted through a powerful nexus that had developed between the flying schools and moles in the regulatory body. But the recent action by the government of sacking the number two man in the DGCA reflects the extent to which the system had been penetrated by the obnoxious and debilitating affliction. Both the aviation industry and the travelling public can now heave a sigh of relief as the government has finally demonstrated its will to take positive action to rid the system of the debilitating infirmity. SP —B.K. Pandey

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