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table of contents

vol 18 ISSUE 3 • March • 2015

Cover IMAGE: Prime Minister Narendra Modi watching the flying display of various aircraft at Aero India 2015 at Yelahanka Air Force Station, Bengaluru.

accelerating the campaign: Aero India 2015 was a perfect launch vehicle for the Prime Minister for his pet theme ‘Make in India’ that reverberated during the five-day extravaganza. The fact that he inaugurated the show, a breakaway from tradition as normally, was testimony to the fact that the government was serious about providing impetus to the ‘Make in India’ campaign.

Cover image by: SP Guide Pubns

industry 7 DPSU

Moving at a Tardy Pace

interview 9 AOC-in-C, Training Command Focus on the Man Behind the Machine

11 Spanish Defence Minister

“Military Programmes can be Adapted as per India’s Needs”

Open letter To Mr Arun Jaitley, 28

Hon’ble Finance Minister of India

L-3 Aviation Products Opens MRO Facility

14 Interview

Krishen Ganase, President, L-3 Aviation Products

show report Aero India 2015 16 Powerful Impetus to Indigenisation 22 In Pictures

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Lead Story

regional aviation 29 Taxation

Taxing Taxes

31 Airline

Air Costa’s usp: Comfort

BIZAVINDIA 33 Conference

OEM 13 L-3 Aviation Products

page 18

Time to Think Small

regular Departments 3 A Word from Editor-in-Chief 6 NewsWithViews IAF to Get 38 Pilatus Basic Trainers 36 Hall of Fame Elinor Smith (1911-2010) 37 NewsDigest 40 LastWord Make in India for Defence – No Easy Task!

Pitchforking ‘Make in India’ The refrain at Aero India 2015 was co-development and that is going to be the road ahead for aerospace and defence industry in India

Applied for NEXT ISSUE Indo-French Cooperation

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table of contents Keeping up with the Path of Partnership...We are the Official Media Partner of India Aviation in 2016.

Publisher And Editor-in-Chief Jayant Baranwal

Taxing Taxes

senior Editor Air Marshal B.K. Pandey (Retd) Assistant Group editor R. Chandrakanth Senior Technical Group Editor Lt General Naresh Chand (Retd) Contributors India Group Captain A.K. Sachdev (Retd) Group Captain Joseph Noronha (Retd) Europe Alan Peaford USA & Canada LeRoy Cook

Chairman & Managing Director Jayant Baranwal

Air Costa’s USP: Comfort

Planning & Business Development Executive Vice President: Rohit Goel ADMIN & COORDINATION Bharti Sharma design Holistic Directions: Jayant Baranwal Creative Director: Anoop Kamath Designers: Vimlesh Kumar Yadav, Sonu Singh Bisht Research Assistant: Graphics Survi Massey DIRECTOR: SALES & MARKETING Neetu Dhulia SALES & MARKETING General Manager Sales: Rajeev Chugh

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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. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, photocopying, recording, electronic, or otherwise without prior written permission of the Publishers.

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A word from editor-in-chief

The ‘Make in India’ theme elevated optimism amongst the participants at the exposition both Indian and foreign, to unprecedented levels

The tenth edition of Aero India 2015 held in February was indeed the largest event of this kind in the history of the Indian aviation industry encompassing both the military and civilian regimes. What made the event truly unique was the presence of Prime Minister Narendra Modi. Even though there were no mega defence deals in the offing in the regime of aerospace industry, the ‘Make in India’ theme elevated optimism amongst the participants at the exposition both Indian and foreign, to unprecedented levels. Preceding Aero India, the Business Aircraft Operators Association (BAOA) held its very first BizAvIndia conference to highlight the challenges and opportunities for the General Aviation industry in India. Hopefully, efforts by the BAOA would in due course, help pull General Aviation out of stagnation that it appears trapped in. The Defence Acquisition Council has approved IAF to procure the second lot of the Pilatus PC-7 Mk II numbering 38. It is a sad commentary on the Indian aerospace industry that it is not able to provide even a basic trainer aircraft in the time frame required, states Air Marshal B.K. Pandey (Retd). L-3 Aviation Products inaugurated a facility in Bengaluru to provide maintenance, repair and overhaul (MRO) services for

their avionics products. Although, as per Krishen Ganase, President of the company, it is a small step, but establishment of such a facility is symbolic of the opportunities that are now available after the launch of the ‘Make in India’ campaign. Welcome aboard and Happy Landings !

Jayant Baranwal Publisher & Editor-in-Chief

@ AERO INDIA 2015

G. Asok Kumar, joint Secretary of Civil Aviation, releases the inaugural copy of bizavindia magazine with Rohit Kapur, President, BAOA, and Jayant Baranwal, publisher and editor-in-chief of bizavindiA.

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jayant baranwal briefing P. Ashok Gajapathi Raju, Union Minister of Civil Aviation, about the newly released BizAvIndia magazine. THE MINISTER IS APPRECIATIVE OF THE QUALITY OF CONTENTS IN SP’S MAGAZINES.

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News

with views NEWS: IAF to Get 38 Pilatus Basic Trainers The Defence Acquisition Council (DAC) chaired by the Minister of Defence Manohar Parrikar which met on February 28, 2015, cleared a followon order for 38 Pilatus PC-7 Mk II basic trainer aircraft for the Indian Air Force (IAF). The DAC decided to go in for the second batch of 38 aircraft under the “Option Clause” in the deal that was originally signed in 2012.

The original contract for 75 aircraft had the Option Clause of buying 50 per cent of the number procured in the first contract within three years on the same terms and conditions. The validity of the Option Clause is up to May 2015 and as such the DAC decided to follow this route for additional basic trainer aircraft.

Photograph: Karthik Kumar / SP Guide Pubns

VIEWS: With the sudden and premature grounding in July 2009 by the IAF of the fleet of HPT-32 piston engine basic trainer aircraft, the organisation was left without a basic trainer. As a result, Stage I training for pilots fell into complete disarray. As the HPT-32 fleet had been in service for just over 20 years, it was half-way through its service life which would normally extend to 40 years. As such, the Indian aerospace major the Hindustan Aeronautics Limited (HAL) that had been providing the IAF with indigenously developed basic trainer aircraft since the 1950s, was not prepared with a ready solution that it could offer at that point in time. The IAF had no option but to carry out Stage I training on the HJT-16 Kiran jet trainer aircraft, not the most desirable solution for a variety of reasons. Also as the Kiran fleet itself was fast approaching the end of its total technical life, it was clear that it could not be used for basic training for long and a suitable platform had to be inducted and that too on fast track to put basic flying training in the IAF back on the rails. After the development of the HPT-32, HAL had taken the initiative to develop a turboprop single-engine trainer dubbed as the Hindustan Turbo Trainer 34 (HTT-34). With an Allison engine rated at 420 shaft horsepower mounted on an HPT-32 airframe, the HTT-34 undertook its maiden flight on June 17, 1984. This new aircraft was far more powerful than the HPT-32 and could have been considered as its replacement in due course. However, for some reason, the IAF did not evince any interest in this project which was shelved, never to be resurrected. At the time of grounding of the HPT-32 fleet in July 2009, the IAF projected to the Ministry of Defence (MoD), a requirement of a total of 181 basic trainer aircraft. In the absence of a readily available solution from HAL and given the urgency of the situation, the MoD had no option but to accord sanction to the IAF to procure 75 basic trainer aircraft from a foreign company. It also ruled that the remaining 106 aircraft with similar attributes would be developed indigenously by HAL. The time frame for the availability of the new aircraft was not defined. Also, the IAF may not have been very happy about the pros-

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pects of operating two different types of basic trainer aircraft as it would lead to duplication of maintenance activities and training of technical manpower. Nevertheless, HAL did embark on the development of the new platform dubbed as the HTT-40. After an elaborate process involving a global tender as well as technical and flight evaluation, in June 2011 the IAF identified the Pilatus PC-7 Mk II as the preferred platform. A contract with Pilatus for 75 aircraft was signed on May 24, 2012, and the first aircraft arrived at the Air Force Academy, Hyderabad, in February 2013. The aircraft with the markings of the IAF was displayed at Aero India 2013. The aircraft was formally inducted in training in June 2013 and by early 2015, delivery of the initial order for 75 is to be completed. Given the rate at which the aircraft has been delivered so far, there should be no doubt about the stated time lines. The IAF is reported to be extremely happy with the performance of the Pilatus PC-7 Mk II fleet. It has proved to be reliable and an excellent platform for basic flying training. The maintenance workload is low and with the high serviceability that the fleet has been recording, more aircraft are available on the flight line thus generating high sortie rate. As the IAF needed to quickly build up the basic trainer fleet to the required level of 181, it suggested that HAL examine the possibility of licence manufacture the remaining 106 Pilatus PC-7 Mk II instead of developing from scratch an indigenous design. For some unknown reason, HAL rejected the proposal outright and continued with the development of the HTT-40. However, with no certainty of the time frame for its availability, the IAF made a pitch for importing another 38 aircraft under the Option Clause of the original contract. This too was stoutly objected to by HAL. Now that the DAC has cleared the proposal for the procurement of the second lot of 38 aircraft from Pilatus, HAL’s quota for the HTT-40 has now reduced from 106 to 68. HAL therefore needs to re-evaluate whether an order for just 68 aircraft would justify the investments required. It may pay better dividends if HAL concentrates its energies on other major ongoing projects. SP —By Air Marshal B.K. Pandey (Retd)

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Industry DPSU

IS HAL DELIVERING? Light Combat Aircraft TEJAS IS YET TO BE FULLY OPERATIONAL

MOVING AT A TARDY PACE In the regime of basic trainer aircraft production, over the years, there has been a perceptible degradation of capability of HAL to meet with the requirements of the IAF

Photograph: Anoop Kamath

Air Marshal B.K. Pandey (Retd)

HAL, a state-owned enterprise with its headquarters in Bengaluru in the state of Karnataka, is the leading manufacturer in the aerospace industry in India. The company was established as a private venture on December 23, 1940, as Hindustan Aircraft Company driven by the initiative of entrepreneurs such as Walchand Hirachand who took over as Chairman and was duly supported by Tulsidas Khilachand and Dharmsey Mularaj Khatau who became the Directors of the new entity. The venture had liberal support from the Maharaja of Mysore, Jayachamarajendra Wadiyar, whose representatives were also inducted on the Board of Managers of the company. The Government of India acquired 33 per cent stake in the company with the investment of `25 lakh, a respectable sum in those days. However, on April 2, 1942, the Government of India announced that the company had been nationalised and post-independence in 1947, the Government formally took charge of its management. Subsequently on October 1, 1964, the company was renamed as the Hindustan Aeronautics Limited, or HAL for short.

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Being a defence public sector undertaking (DPSU), ever since HAL was established, it has been mandated to focus largely on military aviation though the company has built aeroplanes for civil aviation as well. The aviation wings of the Indian armed and paramilitary forces have been captive customers with major orders emanating from the Indian Air Force (IAF). Basic Trainer Aircraft The initial years witnessed a number of successful projects in the regime of trainer aircraft. Beginning in the 1950s, HAL produced the indigenous two-seat Hindustan Trainer-2 (HT-2), a highly successful single-engine basic trainer aircraft. The HT-2 was retired from the IAF after nearly 40 years of service and was replaced by the more powerful and slightly heavier two-seat Hindustan Piston Trainer 32 (HPT-32). However, the HPT-32 project was not as successful as its predecessor the HT-2, as the aircraft proved to be troublesome. The IAF was left with no option but to ground the HPT-32 fleet prematurely after just 18 years of service as HAL

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Industry DPSU was unable to correct the design deficiencies that led to several ful NPO Saturn AL-55I engine from Russia. However, acquisition of disastrous accidents in which a number of precious lives were lost the new engine took some time and its integration with the Sitara proved to be difficult for HAL resulting in the programme being set including those of even experienced flying instructors. In the regime of basic trainer aircraft production, it has been back by a few years. But the problem that has proved insurmountobserved that over the years, there has undoubtedly been a per- able so far has been the unacceptable behaviour of the aircraft in ceptible degradation of capability of HAL to meet with the require- a stall. Consequently, spin trials could not be carried out. It now ments of the IAF. The IAF went through a jarring experience with transpires that the airframe of the Sitara needs to be redesigned the problems it faced with the HPT-32 fleet and its premature as the IAF is not prepared to accept a jet trainer aircraft for basic grounding in July 2009 left the service literally high and dry and training that is afflicted with serious handling problems. Redesign basic flying training in complete disarray. With no certainty of a of the airframe being a complex task, would entail further delay in solution by way of an indigenous basic trainer forthcoming from the programme that is already five years behind schedule. At this HAL, the IAF opted to explore options for acquiring a basic trainer juncture, despite the assurances by HAL, the time frame for the aircraft through outright purchase from foreign sources. In ret- IJT cannot be predicted with any degree of certainty. Once again rospect, this decision of the IAF was the right one as in just over left in the lurch by HAL, the IAF has no alternative but to explore three-and-a-half years after the grounding of the HPT-32 fleet, options abroad for an IJT. The IAF cannot wait indefinitely for the induction of the 75 Pilatus PC-7 Mk II turboprop basic trainer air- HAL to provide a replacement for the Kiran fleet and compromise the interests of not only the service but of national security as well. craft ordered on Pilatus Aircraft Ltd of Switzerland commenced. Of the total requirement of 181 basic trainer aircraft for Without a properly constituted fleet of trainer aircraft, the IAF Stage-I training, the IAF has placed orders for 75 aircraft with will not be able to train pilots in the numbers required to man the Pilatus Aircraft Ltd. The remaining was to be built by HAL either newly approved strength of 42 combat squadrons. through indigenous effort collaboration with any other original equipment manufacturer (OEM) or through licensed production light combat aircraft tejas of the Pilatus PC-7 Mk II. Apparently, HAL rejected the sugges- On January 17, 2015, in a quiet ceremony at HAL where the tion to collaborate with Pilatus Aircraft Ltd to licence produce the media was not invited, the first indigenously-built light comPilaus PC-7 Mk II and opted to embark on the first option, i.e. to bat aircraft (LCA) Tejas Series Production 1(SP-1) was formally develop an indigenous platform dubbed as the Hindustan Turbo handed over to Air Chief Marshal Arup Raha, Chief of the Air Trainer 40 (HTT-40). Although the first option ought to have been Staff, Indian Air Force (IAF) by Manohar Parrikar, the Minispreferred by the IAF as well, the Indian ter of Defence. Although the event is being aerospace major has failed to inspire conflouted by the Indian aerospace industry as fidence as the HTT-40 project continues a major success, the 32-year-long journey to be plagued by uncertainty even though of the LCA is known more for slippages in The LCA Tejas is not HAL has indicated that the aircraft would the programme and of missed deadlines. yet truly ready to be a be available beginning in 2019. However, But a major deficiency at the handing over as the IAF cannot risk the possibility of endceremony as discovered later was the fact part of the operational less wait for HAL to come up with a basic that the LCA Tejas SP-1 was handed over combat fleet of the IAF trainer aircraft, it has initiated a proposal to the IAF without the associated training to procure another 38 Pilatus PC-7 Mk II and technical manuals. This was symbolic in the event of a war aircraft from Switzerland and leave the of the work culture in HAL. remaining 68 platforms for HAL to provide, The LCA programme conceived in the HTT-40 or any other platform of similar 1981 was sanctioned by the government capability. The IAF will be monitoring the progress of the HTT-40 in 1983. In January 2001 the first LCA Technology Demonstraproject carefully and will be prepared with options in case there tor undertook its maiden flight. Sanction for Limited Series Prois further slippage in the project, the possibility of which remains duction (LSP) of 20 aircraft for the IAF was accorded by the real and will continue to haunt the IAF. government only in 2006. But even after a 32-year programme of development, the LCA Tejas has with considerable difficulty managed to obtain only the initial operational clearance (IOC) Intermediate Jet Trainer (IJT) HAL designed, developed and produced the Hindustan Jet Trainer and that too in the second attempt. The LCA Tejas is not yet truly 16 (HJT-16) was inducted into the IAF beginning in the early ready to be a part of the operational combat fleet of the IAF in 1970s for Stage-II training. Dubbed as the Kiran, this fleet has the event of a war. The low level of confidence that the IAF has been the second successful trainer aircraft and the first successful in this platform is evident from the fact that it has ordered only jet trainer from HAL. However, as the Kiran fleet has been with the 40 of this aircraft to raise only two squadrons when it desperIAF for over four decades, its retirement from service is somewhat ately needs to build up the strength of its combat fleet from the overdue. On account of the inability of HAL to provide a new IJT as current level of 25 squadrons to the authorised level of 39.5 replacement, the IAF has no option but to continue extending the squadrons and then on to 42. More importantly, the original life of the Kiran fleet to the detriment of the interests of the service. objective of the LCA programme that was to produce an airHAL initiated a programme in 1997 to replace the Kiran with the craft indigenously to replace the MiG-21 fleet, is unlikely to be HJT-36 IJT by 2010. The HJT-36 project was approved by the gov- achieved despite the investment of `30,000 crore in the project ernment in 1999 and the prototype undertook its maiden flight on since its inception. As per rhetoric emanating from the top echelons of the March 7, 2003, when it was christened as the Sitara by Atal Bihari Vajpayee, the then Prime Minister of India. While the programme Indian aerospace industry, the final operational clearance (FOC) up to this time was hailed as a major success, it unfortunately got for the LCA Tejas Mk I is scheduled for end 2015. Should this derailed thereafter for a variety of reasons such as underpowered deadline be missed as was the case with IOC, it should not come engine, an overweight airframe and serious handling issues. The as a surprise to the IAF. SP underpowered Larzac engine was replaced by the more power(To be continued...)

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Interview

AOC-in-c, training command

Air Marshal Ramesh Rai VM took over as the Air Officer Commanding-in-Chief of Training Command of the Indian Air Force (IAF) on July 1, 2014. It was under his command as the Air Officer Commanding at Air Force Station Bidar that the fleet of Hawk advanced jet trainers were inducted into the Air Force, a landmark event indeed. The AOC-in-C, Training Command speaks with Air Marshal B.K. Pandey (Retd), Senior Editor, SP’s Aviation on his perspectives on human resource development in the IAF and related issues.

Photograph: IAF

Focus on the man behind the machine SP’s Aviation (SP’s): What is your broad vision for training in the IAF and what are the core areas that you wish to focus on? AOC-in-C: The Indian Air Force (IAF) is on the trajectory of modernisation and is rapidly transforming into a strategic aerospace power. The professionalism and competence of the “man behind the machine” is of vital significance for the IAF to exploit its full capability and meet the security challenges. Accordingly, the vision of Training Command is, “To develop young men and women into professional air warriors, teach them our core values of mission integrity and excellence, to make IAF the world’s

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most competent Air Force”. Our mission is, “To train air warriors to deliver air power for the nation”. The core areas in line with our vision and mission statement are: • Ingraining professional knowledge and skills during ab initio training to prepare them for a technology-intensive full spectrum war. • Redraw the syllabus to cater to future inductions and technological advancements. • Raise the quality and standard of instruction by focusing on enhancing the quality of instructors. • Enhance the quality and efficacy of training by state-of-the-art

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Interview AOC-in-c, training command infrastructure, facilities and training aids. • Ingrain in ab initio trainees, our core values of Mission, Integrity and Excellence. • Emphasise on sports and other team activities to promote camaraderie and build on physical fitness. • Improve the overall quality of life of the trainees and all personnel under this Command.

of Switzerland for PC-7 Mk II aircraft. The delivery of these aircraft is on schedule and 55 have been received till date at AFA. The PC-7 Mk II has proven to be a very reliable aircraft with good serviceability and training potential. The IAF has been able to restore its ‘basic flying training capability’ that was affected by the grounding of HPT-32 fleet. The development of indigenous BTA has been considerably delayed and no time frame has yet been drawn for its availability. The IAF needs the remaining 106 BTAs urgently for which all options are being deliberated at the Ministry of Defence (MoD). In the interim, the Defence Acquisition Council has cleared the proposal by the IAF to procure another 38 Pilatus PC-7 MK II aircraft.

SP’s: Air Chief Marshal N.A.K. Browne, the former CAS, has propagated a philosophy “People First, Mission Always”. What is the essence of this philosophy and its import for Training Command of the IAF? AOC-in-C: “People First, Mission Always” underscores the fact that the man/woman behind the machine is the “pivot factor” SP’s: What is the status of the Hawk advanced jet trainer that will eventually decide the outcome of any operational en- fleet whose induction had begun under your Command? deavour. Emphasis on capability-development of the air war- AOC-in-C: The Hawk Mk-132 aircraft was inducted when I was rior stems from our ongoing strategic transformation wherein the Air Officer Commanding (AOC) of Air Force Station Bidar. it is absolutely essential that technology imbibed is ably ex- The induction was smooth and the endeavour was to set up a ploited to derive maximum advantage in any operational situ- viable and effective training system to prepare pilots for direct ation. The statement is a leadership paradigm which exhorts induction into front line operational squadrons by exploiting its entire capability. The training syllabus, leaders in the IAF to avoid the pitfall of method and curriculum has come up exoverly focusing on the technology at the tremely well and has been refined after it cost of building up on our people. The was first set up in 2008-09 when the first import for Training Command accordThe delay in availability course commenced training on this platingly is to focus on benchmark functions form. Sortie profiles have been designed of recruitment, training and developof a suitable trainer to build both flying and system management of officers and men and to make aircraft for the IAF’s ment skills with a view to exploit the capathem competent professionals. The viintermediate stage bilities of any fighter platform. Simulator sion and core areas of Training Comtraining forms an important and integral mand, which I had elaborated upon earflying training is of part of Hawk training and has been emlier, are based on this requirement. We serious concern and we bedded in the syllabus. On completion of have culled out our slogan as “Trainees year-long training on Hawks, fighter pilots First, Training Always”, implying our foare considering various are posted to various operational fighter cus on trainees. options to deal with this squadrons of the IAF. The Hawk has inteeventuality grated extremely well into the IAF’s trainSP’s: You assumed charge as AOC-ining concept and has proved to be an effecC, Training Command at a time when tive training platform. basic flying training was just about recovering from a state of flux during SP’s: There have been reports in the media about the IJT which flying training was in disarray. Can you please update programme running into problems. Can you please update our readers on the flying training pattern being followed us on the status of the IJT programme? now? AOC-in-C: Some stop-gap measures were instituted after ground- AOC-in-C: The IJT project was initiated by HAL in 1999 with ing of the HPT-32 fleet. However, the training pattern has now initial operational clearance to be in 2004. The programme is been streamlined with the induction of PC-7 MK II. We are fol- running more than a decade behind schedule. HAL has sought lowing a three-stage pattern of training. In Stage-I, all trainees consultancy from BAeS to resolve issues of stall and spin. It has fly around 55 hours on the PC-7 MK II aircraft. After completion now emerged that there would probably be a requirement to reof first stage, the trainees are trifurcated into Fighter, Transport design the tail plane and rear fuselage which would imply that and Helicopter streams where they fly Kiran, Dornier or Chetak the aircraft may have to go to the design board again. The required structural changes are expected to increase the weight of aircraft respectively as part of Stage-II training. On successful completion of Stage-II, the trainees are com- aircraft by more than 300 kg. This weight increase on an already missioned into the IAF and they proceed to Stage-III which overweight IJT prototype would adversely affect its performance. involves advanced training on aircraft of their stream, viz, Hawk The delay in availability of a suitable trainer aircraft for the IAF’s for fighter, An-32/ Dornier for transport and Mi-8 for rotary-wing. intermediate stage flying training is of serious concern and we are considering various options to deal with this eventuality. SP’s: What is the induction plan for the Pilatus PC-7 basic SP’s: Having been in service with the IAF for over four trainer fleet beyond the first batch of 75 aircraft? Is there decades the Kiran fleet is ageing and has been somewhat any plan on parallel track to procure an indigenous equivaoverstretched. What are the plans for its replacement espelent from HAL and if so, in what time frame? AOC-in-C: The government had earlier approved procurement of cially as there is no certainty about the time frame for the 181 basic training aircraft (BTA) for the IAF. Of these, 75 aircraft availability of an indigenous IJT? were to be procured through a global tender and 106 were to be developed and manufactured by HAL in a time bound manner. For the global procurement, contract was signed with M/s Pilatus Continued on page 12...

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interview

spanish defence minister

Military programmes can be adapted as per India’s needs

Photographs: Anoop Kamath

On a second visit to India in less than three years time, Pedro Morenes, Spanish Defence Minister, is on a mission to strengthen defence relations between the two countries. In a brief interaction with SP’s Aviation, Morenes has underscored the capabilities of the two countries and how mutual exchange would benefit both. SP’s Aviation (SP’s): What is the key constituent to enrich the defence relations between the two countries? Pedro Morenes (Morenes): We share common objectives, particularly when it comes to dealing with terrorism. The threat of terrorism is real and is affecting the world. We look forward to sharing key issues, creating confidence and trust and sharing intelligence to fight the menace of terrorism. With geopolitical issues affecting the two nations, we should constitute a joint group comprising key officers and train them with this objective. The relations between military personnel last longer and we can leverage that. It will be important to share military knowledge as we have similar threats. India has a vast mountain range and it has built good capabilities and Spain has also similar capabilities. We can jointly work on that.

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India has important programmes in the domain of maritime and arms and Spain can help with its industry and enter into knowledge cooperation, as per requirements of the Indian Government. It can be covered under the government to government umbrella. The Indian Government has a guarantee of the Spanish Government, that’s the general scheme. SP’s: Compared to your last visit, how do you find the business environment under the new government? Morenes: It is a new frontier and I see new enthusiasm. The idea is to do something constructive, development is really important. There is a lot of visible enthusiasm with the new government. The ‘Make in India’ initiative is welcome and we are keen on contributing to this strategic plan. We are familiar with this concept

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interview spanish defence minister as we have had the same view not very long ago. We have a rich culture to share too. Overall India is a lively country.

Spanish Defence Minister Pedro Morenes discussing SP’s military yearbook 2014-2015 with Sp guide publications’ publisher and editor-in-chief jayant baranwal

SP’s: Do you foresee any joint developments with India? Morenes: We are running a joint programme with the Navy. The shipyards’ military needs fit well with our capabilities. We can have common development for India and programmes can be adapted as per India’s needs in the field of military, cyber and outer space. Then there are high-technologies with dual use capabilities that can cover many needs in aircraft and radar and communication. We have good examples of cooperation – Navantia with L&T. We have the C295 programme and the platform can be manufactured here. We feel that government to government is the best way of furthering relationship and defence agreements being sensitive, they are better protected with government to government interactions. We believe in India as partners for the present and the future. SP

...Continued from page 10 AOC-in-C: The Kiran fleet has been a reliable workhorse on which a very large number of IAF and other service officers have trained. There is no doubt that the fleet has become old and is presently overstretched. We had to give further extension to Kirans, since the availability of the IJT being built by HAL has been significantly delayed. The IAF is considering all options to deal with the shortage in the Intermediate Stage training capacity. The Kiran aircraft would probably be in service till 2017 by when the IJT, if available, would be considered or else an alternative option would have to be sought. SP’s: What measures are being adopted or contemplated to restructure the training pattern of technical personnel to enable them to cope with the demands of advanced technologies? AOC-in-C: The IAF has recently adopted an integrated pattern of training (IPT) with effect from January 2014. In this pattern, the initial 24 weeks consist of basic phase of training in which a civilian is converted into an air warrior. Thereafter, 64 weeks of training is imparted to make him a technician and to give thorough knowledge and skills of his trade. The technical training curriculum has been re-designed to keep air warriors abreast of latest aviation technologies. Modern aids, aircraft metallurgy, manufacturing techniques, computer-based learning and animation have been introduced to make the training effective and futuristic. Actual hands-on practice is imparted during the advanced phase of training in TETTRA establishments. This part of the training imparts the required knowledge and skills for a particular aircraft/system. The training pattern therefore ensures both theoretical and practical training. SP’s: What are the implications of the plan to construct the second runway at the Kempegowda International

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Airport (KIA) for flying training activities at Air Force Station Yelahanka? AOC-in-C: Presently, only one runway is operational at KIA and work on second parallel runway has not commenced. The second runway would impact transport and helicopter flying training since it is conducted north of Yelahanka. The lateral spacing between aircraft on final approach for Runway 9 at KIA and helicopters at Yelahanka would reduce to approximately 2.5 nautical miles. This may pose a problem for flight safety. This issue has been taken up at the Joint Working Group meeting and with NATS, UK which is the third party consultant appointed for resolving airspace management issues of airfields in Bengaluru. The consultant is expected to submit a report by March 2015 with possible solutions which will give us a way forward. SP’s: Media reports in the past had indicated that there are issues concerning the prestigious Aero India International Airshow, a biennial event that is held at Air Force Station Yelahanka. Are there any uncertainties in this regard in view of the increase in the volume of traffic at the KIA? AOC-in-C: Aero India is held under the aegis of the MoD. The IAF is involved in various activities related to the event including static and air display of aircraft. Due to proximity of KIA and for safety reasons, the air display necessitates closure of KIA airspace which in turn requires rescheduling of civil flights at KIA. The timings for closure of airspace are resolved amicably between the Ministries of Defence and Civil Aviation and so it was for Aero India 2015. The IAF and KIAL work in close coordination to address closure timings and safety parameters. Any uncertainties for future would be addressed at an appropriate level for airshows in the future keeping all aspects of airspace management and concerns of stakeholders in mind. SP

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OEM

L-3 AVIATION PRODUCTS

V. Sadagopan, Managing Director, Helicopter Complex, HAL, lighting the ceremonial lamp in presence of KrisHEN Ganase, President of L-3 Aviation Products, and Apparao V. Mallavarapu, CMD, Centum Electronics Limited (extreme left); (right) KrisHEN Ganase poses for the shutterbugs

L-3 Aviation products Opens MRO Facility "Our philosophy is simple: look after the business we have, before we start looking for new business" — Krishen Ganase, President of L-3 Aviation Products

L Photographs: L-3

L-3 Aviation Products (L-3 AP) inaugurated its new MRO facility in Bengaluru to serve the growing needs of the Indian aviation industry. The facility was inaugurated by the Executive Director of the Hindustan Aeronautics Ltd (HAL) (Helicopter Complex) V. Sadagopan in the presence of Krishen Ganase, President of L-3 Aviation Products, and other dignitaries. Sadagopan acknowledged the work done by L-3 AP and hoped that it would soon manufacture products in India, even while serving the existing customers. The original equipment manufacturer (OEM) has to be in India to serve better the market. He went around the facility and hoped that the association with HAL would further grow. First Step Speaking on the occasion, Krishen Ganase said that this was the first step of the multiple steps the company would be taking in India. The MRO facility would address repair and maintenance needs of products and solutions of L-3 AP which were on 1,500 aircraft in India. To begin with the facility would work on flight data recorders and then move on to other equipment. “Our philosophy is simple: look after the business we have, before we start looking for new business.” The existing customers would be supported locally and the company truly believed in its theme for the ceremony: ‘India’s Partner – Today, Tomorrow and in the Future’ building relationships with existing and new customers. Next Steps Acknowledging that India is a huge market, he said the company was clear in its strategic approach. Our next step will be

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building products over here and the third step possibly will be creating ‘our own joint venture’. Five years from now, this place will not be sufficient at all, he said indicating the potential of the business in India and the region. “Our growing presence in India underscores L-3's pledge to serving the Indian aviation sector. Our new MRO facility places additional personnel in key technical and business roles in Bengaluru, and we are continuing to broaden our reach in other ways to meet the evolving needs of military and commercial aviation customers in the region.” Group Captain Rajeev Dutta (Retd), L-3 AP’s Director of Business Development, based in Bengaluru, said “We are focused on implementing the next steps in localised sustainment solutions for our growing customer base. Our new MRO office provides an ideal setting to directly engage with our local customers and business partners and helps foster relationships in support of India’s dynamic aviation marketplace.” L-3 AP is a leading provider of commercial and military avionics with unsurpassed performance, quality and customer support. L-3 AP manufactures a diverse line of safety and efficiency-enhancing products that sets the standard for nextgeneration requirements, including configurable voice and data recorders, collision avoidance systems, navigation products, display systems and processors. L-3 AP also offers aftermarket solutions, including MRO, total avionics support programmes and performance-based integrated logistics support for military and commercial systems. SP — By R. Chandrakanth from Bengaluru

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INTERVIEW

L-3 Aviation products L-3 Aviation Products, a leading provider of commercial and military avionics, has opened a new MRO facility in Bengaluru to support customers in India and the region. On this occasion, Krishen Ganase, President of L-3 Aviation Products, spoke with Air Marshal B.K. Pandey (Retd), Senior Editor, SP’s Aviation. He said that while the company had been engaged in business in India for quite some time, they were aware that to be genuinely successful in India, they must necessarily become an 'Indian Company'. Although cost advantage of manufacturing in India is reducing, it is not the company’s primary concern as it is looking for quality more than cost benefits. The new facility is a small but significant step in this direction and though the beginning can be described as humble, Krishen Ganase went on to say that five years hence one would not be able to recognise the place.

Photographs: L-3

L-3 Aviation products is onboard as we seek the best strategic alliances to bring value to our state-of-the-art products and services for Indian aviation customers SP’s Aviation (SP’s): With the new facility on repair and overhaul in Bengaluru, can you spell out the key objectives? Which all markets will be addressed by this facility? Krishen Ganase (Ganase): In establishing this new MRO facility in India, we ensure that a truly localised technical sustainment capabilities and expertise is available for our customers in India. We will be expanding our capability here in Bengaluru by seeking DGCA Part 145 Repair Station approval to perform work on civil aircraft avionics for our local customers, to include service and support of our TCAS, TAWS, and ATC Transponder products, as well as flight and data recorders, flying on Airbus and Boeing aircraft, operated by airlines such as Air India, Jet Airways, IndiGo and SpiceJet. We have content on aircraft produced by ATR and Embraer for both civil and military platforms. And we supply to business jets such as Global Express, Challenger, Dassault, Learjet, Cessna, Hawker Beechcraft, and Bell and Agusta helicopters. We are also adding logistics support capability to support on

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military aircraft, including CH-47, Apache AH-64D, C-130J, P-8I Neptune and Pilatus PC-7. SP’s: What’s the road map and the targets you may have set out for the facility? Ganase: This facility starts formal operations from April 1, 2015. We will be addressing our flagship Recorder Products (FDR/CVR) that are installed on ALHs, Pilatus PC-7, etc. This initial capability will be scaled to address the recorder products used in civil aviation in a very short time frame with appropriate regulatory approvals from DGCA. We see this facility expanding to address the complete line of avionics product that are manufactured by L-3 Aviation Products (L-3 AP). SP’s: What kind of presence and the nature of business activities have you had in India till now? Who is your main competitor in India? Ganase: Our products are on approximately 1,500 aircraft both military and civil, flying in India. Compare this with the market

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INTERVIEW L-3 Aviation products

air marshal B.K. pandey (retd) in conversation with President, L-3 Aviation Products

in US where our products are flying in 1,83,000 aircraft. The main competitor in India is Honeywell. SP’s: Can you take us through the overall company profile of L-3 Aviation Products and its range of technologies across the spectrum of civil as well as military? Ganase: L-3 Aviation Products is a leading provider of commercial and military avionics. We manufacture a diverse line of safety- and efficiency-enhancing products that sets the standard for next-generation requirements, including configurable voice and data recorders, collision avoidance systems, navigation products, display systems and processors. And of course, we provide MRO and aftermarket services, including total avionics support programmes and performance-based integrated logistics. SP’s: What are the major ongoing projects of the company, back home, related to next-generation solutions both for civil and military applications? Ganase: We’re a leader in the development of Automatic Dependent Surveillance-Broadcast (ADS-B) technology. We’re heavily involved in the global effort to upgrade aircraft with ADS-B Out transponders ahead of the various approaching mandates. We are also actively involved in the interoperability of UAS and manned aircraft in the airspace that is increasingly becoming dense and complex. SP’s: Do you have any collaboration or interaction with the IT industry or any other field in the Indian aerospace industry in India? Ganase: Avionics is definitely a specialised stream addressed by IT industry and falls under safety critical embedded systems. Given the maturity of Indian IT industry in this domain, we work with a few companies that undertake software modules development and re-engineering. We provide this outsourced process of software development with oversight and the regulatory compliance framework. SP’s: Would you like to share your company’s experience at Aero India held in February 2015 at Yelahanka, Bengaluru?

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Ganase: Aero India 2015 was a successful event for us. Increasingly, the Indian aerospace industry is becoming aware of what needs to be done to build maturity in the sector. India inherently does not have an ecosystem that would readily support aviation industry. We do observe the space sector to be relatively mature because of obvious reasons of not involved with passenger carrying activity and linked safety standards. It is imperative to diversify and build aerospace supporting ecosystem of Tier-I and Tier-II companies and assigning focused objectives at each of these levels. You cannot have one OEM that does all the tier work as well. Technology has come a long way in the West and investing effort in developing this technology from the grassroots is like re-inventing the wheel. It is the need of the hour to look at collaborations and policy actions to foster this growth. SP’s: What is your view of the recent thrust by the government on ‘Make in India’? Do you foresee any impediments to this campaign? Ganase: The intent of the ‘Make in India’ initiative is certainly good for India. L-3 AP is onboard as we seek the best strategic alliances to bring value to our state-of-the-art products and services for Indian aviation customers. This ‘Make in India’ impetus needs to be backed by positive governmental policy framework, we will wait to see how this progresses. SP’s: What is your perception of the future of unmanned aerial systems (UAS) vis-à-vis manned aircraft in the regime of civil aviation? To what extent is your company involved in the development of avionics for UAS? Ganase: UAS technology is destined to become a reality and the key issues would be its interoperability with the civil aviation. The key issue will be when both these manned and unmanned systems operate in same airspace. Airspace is a limited resource; and with ICAO trying to harmonise all for assured safety, there are several conflicts. We are at the leading edge of these developments and besides our current range of avionics, some of them are already optimised for SWaP (size weight & power) we are foraying into development and pilot implementations of NextGen safety and interoperability standards and products. SP

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Show Report Aero India 2015

POWERFUL IMPETUS TO INDIGENISATION “Our security challenges are well known. Our international responsibilities are evident. We do need to increase our defence preparedness. We do have to modernise our defence forces.” Following is the full text of speech by Prime Minister at Aero India 2015.

Photograph: PIB

My ministerial colleagues, distinguished participants and guests, I am delighted to participate in the 10th edition of Aero India. More than 250 Indian companies and more than 300 foreign firms are here. There are defence ministers, senior officials and hundreds of business leaders from around the world. A big welcome to each of you! This is the largest ever Aero India. This reflects a new level of confidence within our country and global interest in India. To many of you, India is a major business opportunity. We have the reputation as the largest importer of defence equipment in the world. That may be music to the ears of some of you here. But, this is one area where we would not like to be No. 1! Our security challenges are well known. Our international responsibilities are evident. We do need to increase our defence preparedness. We do have to modernise our defence forces. We have to equip ourselves for the needs of the future, where technology will play a major role. As a nation of one billion people, we also have huge requirements for managing internal security. We are increasingly integrating technology and systems into it. These opportunities make Aero India an important international event. For me, this is not just a trade fair for defence

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equipment. This is a mega meeting of one of the largest global supply chains, with the most advanced technology and complex equipment and a platform to launch India’s defence manufacturing sector. A nation with a strong defence industry will not only be more secure. It will also reap rich economic benefits. It can boost investment, expand manufacturing, support enterprise, raise the technology level and increase economic growth in the country. In India, the defence industry in the government sector alone employs nearly 2,00,000 workers and thousands of engineers and scientists. They produce an output of nearly $7 billion annually. It also supports a very large pool of small and medium enterprises. Our defence industry in private sector is still small. But, it already employs thousands of people. This is despite the fact that nearly 60 per cent of our defence equipment continues to be imported. And, we are spending tens of billions of dollars on acquisitions from abroad. There are studies that show that even a 20 per cent to 25 per cent reduction in imports could directly create an additional 1,00,000 to 1,20,000 highly skilled jobs in India. If we could raise the percentage of domestic procurement from 40 per cent

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Show Report Aero India 2015 to 70 per cent in the next five years, we would double the output in our defence industry. Imagine the impact in terms of jobs created directly and in the related manufacturing and services sector! Think of the spin-off benefits on other sectors in terms of advanced materials and technologies! That is why we are focusing on developing India’s defence industry with a sense of mission. This is why it is at the heart of our ‘Make in India’ programme. We are reforming our defence procurement policies and procedures. There would be a clear preference for equipment manufactured in India. Our procurement procedures will ensure simplicity, accountability and speedy decision making. We have raised the permitted level of foreign direct investment to 49 per cent. This can go higher, if the project brings state-of-the-art technology. We have permitted investments up to 24 per cent by foreign institutional investments. And, there is no longer a need to have a single Indian investor with at least a 51 per cent stake. Industrial licensing requirements have been eliminated for a number of items. Where it is needed, the process has been simplified. We are expanding the role of private sector, even for major platforms. Our goal is to provide a level playing field for all. We speak in terms of national capacity, not public sector or private sector. Offsets system is a crucial instrument to develop and upgrade our defence industry. We have introduced significant reforms in our offsets policy. I am acutely aware that it still needs a lot of improvements. We will pursue them in consultation with domestic industry and our foreign partners. I want our offsets policy not as a means to export low-end products, but to acquire state-of-the-art technology and skills in core areas of priority. Government’s support for research and development is essential for defence sector. And, it should also be accompanied by a degree of assurance on purchase. We are introducing a scheme to provide up to 80 per cent of funding from the government for development of a prototype in India. And, we are also launching a Technology Development Fund. For too long, our research and development has been confined to government laboratories. We must involve our scientists, soldiers, academia, industry and independent experts more closely in research and development. Last month at the Army Day reception, I had asked to meet our officers and soldiers, who had made the best innovations in our defence equipment. I was impressed with what I saw. Finally, we have made our export policies clearer, simpler and predictable. But, we will also abide by the highest standards of export controls and international responsibility. We will expand our exports, but we will ensure that our equipment and technology do not fall into the wrong hands. India’s record in this area has been impeccable and it will remain so. I am pleased with the positive impact of our policies. Indian private corporations have responded with enthusiasm. There is new excitement in our small and medium scale sector. Many of the biggest global firms are forming strategic partnerships in India. Some of them have already begun using India as part of their global supply chains or engineering services. In September 2014 Dynamatic Technologies and its collaborator Boeing inaugurated a plant in India to manufacture critical parts for a Boeing helicopter that is sold globally. I understand that it was a day after ‘Make in India’ was launched. I am pleased to learn that the first set of parts is ready for shipment today. But, we still need to do more. We have to further reform our acquisition and approval processes. We must indicate a clear road map of our future needs. This must take into

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account not only new technology trends, but also the nature of future challenges. We must pay attention to developing supply chains, with emphasis on innovation. We must bridge the gap between prototype development and quality of production. We must develop a financing system suited to the special needs of this industry. It is a market where buyers are mainly governments, the capital investments are large and the risks are high. We must ensure that our tax system does not discriminate against domestic manufacture in comparison to imports. More broadly, our defence industry will succeed more if we can transform the manufacturing sector in India. We need great infrastructure, sound business climate, clear investment policies, ease of doing business, stable and predictable tax regime and easy access to inputs. We need a national industry that produces advanced materials, the most sophisticated electronics and the best engineering products. Over the last eight months, we have worked hard to create that environment for you. Above all, we need a vast pool of highly skilled and qualified human resources for the defence industry. Our aerospace industry alone would need about 2,00,000 people in another ten years. We will set up special universities and skill development centres to cater to our defence industry, just as we have done in atomic energy and space. I have especially invited the State Governments to come here with package of facilities to attract investments in defence manufacturing. Distinguished guests, This is a new era for the defence industry in India. It will be no longer enough to buy equipment and simply assemble them here. We have been doing this in the past, without absorbing any technology or developing our own capabilities. In some areas, we are where we were three decades ago. Frankly, our public sector needs to do much better than they are doing now. We have to exploit their huge assets and a vast potential. At the same time, we have to make them accountable. We want to develop an industry that is dynamic. It should constantly stay at the cutting-edge of the global industry. I am confident that India will emerge as a major global centre for defence industry. We have the basic building blocks for it in India; and, a large nation requirement. We will build an industry that will have room for everyone – public sector, private sector and foreign firms. From sellers, foreign firms must turn into strategic partners. We need their technology, skills, systems integration and manufacturing strength. The nature of industry is such that imports will always be there. In turn, they can use India as part of their global supply chain. Defence budgets around the world are becoming tighter. India’s frugal but sophisticated manufacturing and engineering services sectors can help reduce costs. India can also be a base for export to third countries, especially because of India’s growing defence partnerships in Asia and beyond. A strong Indian defence industry will not only make India more secure. It will also make India more prosperous. Aero India can be a catalyst in realising our goals. That is why I am here today. So, as we look at these wonderful aircraft and enjoy the amazing fly-pasts, I also hope we can get some business done. And, sow the seeds of successful new ventures and partnerships – to give our people new opportunities, to make our nations safer, and the world more stable and peaceful. Thank you. SP

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SHOW REPORT AERO INDIA 2015

PITCHFORKING ‘MAKE IN INDIA’

vigilant eye: Prime Minister Narendra Modi watching the flying display of lch at the Aero India 2015 AirShow in Bengaluru

Photograph: PIB

The refrain at Aero India 2015 was co-development and that is going to be the road ahead for aerospace and defence industry in India

By R. Chandrakanth

Aero India is touted as Asia’s premier airshow though it may not be the event where billion dollar deals are announced. That is for Le Bourget, Farnborough, Dubai and even Singapore to outperform each other. Basically, these mega deals are centred around commercial airlines. But Aero India, which just completed its tenth edition from February 18 to 22 at Air Force Station, Yelahanka near Bengaluru, is primarily an exposition related to military aviation with a bit of civilian flavour and hence announcements of major ISSUE 3 • 2015

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SHOW REPORT AERO INDIA 2015 deals for civilian airplanes are rare. However, the tenth edition caught the attention of the world for more than one reason. India’s image as a major defence importer had to be shed. Prime Minister Narendra Modi used the platform to announce to the world that India will shed the image of being the leading defence importer and become a co-partner, co-developer and co-producer of military hardware—launch pad for ‘Make in India’ campaign.

Photograph: PIB

Thus Aero India 2015 was a perfect launch vehicle for the Prime Minister for his pet theme ‘Make in India’ that reverberated during the five-day extravaganza. Prime Minister Modi had set the tenor for the show and afterwards. The fact that he inaugurated the show, a breakaway from tradition as normally, this has been the privilege of the Indian Minister of Defence, was testimony to the fact that the government was serious about providing impetus to the ‘Make in India’ campaign. Aero India had 328 foreign firms vying with each other to align with the government’s ‘Make in India’ campaign as they eye the burgeoning multibillion-dollar Indian defence market. In addition, there were 295 Indian companies showcasing their products and solutions they had to offer. Seven of the 11 foreign military aircraft on display were American — two F-15C Eagles, two F-16C Fighting Falcons, one Boeing KC-135 tanker, one C-17 Globemaster III and a P-8A Poseidon maritime surveillance aircraft. The US with 64 companies had the biggest presence at the event, in which 33 other countries took part. France was the second biggest participant with 58 companies, followed by the UK with 48, Russia with 41, Israel with 25 and Germany with 17, the organisers said. Finmeccanica came back though in a pretty modest size, as one of the exhibitors. India’s light combat aircraft (LCA) Tejas roared in the skies along with other combat aircraft such as the Rafale from Dassault Aviation of France and the F-15 from Boeing of the US. It was indeed a proud moment, the delay in the LCA project notwithstanding.

Boundless Enthusiasm But the enthusiasm of the many Indian companies was boundless and they were already singing Prime Minister Modi’s ‘Make in India’ tune apart from making appropriate sales pitch with foreign original equipment manufacturers (OEMs). Fruits of such partnerships ought to be visible in the near future. The strong and expansive presence of not just the Tatas and the Mahindras, but also of innovative companies such as Alpha Design Technologies, Zen Technologies, Dynamatic Technologies and a host of others, bode well for the growing aerospace and defence industry in the private sector in India. While the defence public sector undertakings — the Hindustan Aeronautics Limited (HAL), the Bharat Electronics Limited (BEL), the Defence Research and Development Organisation (DRDO) — were in demand with several OEMs wanting to have a tie-up as the route now is going to be clearly co-production. Prime Minister Modi promised a conducive environment for manufacturers, including a discrimination-free tax system, and asked foreign firms not to be just “sellers” but “strategic partners”. Inaugurating the show he said, while the country needs to increase its defence preparedness and modernise its forces due to security challenges that were well known, it should aim to manufacture 70 per cent of military hardware domestically in the next five years and remove the tag of being number one importer of defence equipment. Stressing that developing domestic defence industry “is at the heart of the ‘Make in India’ programme”, he said, “we will build an industry that will have room for everyone – public sector, private sector and foreign firms”. “From sellers, foreign firms must turn into strategic partners. We need their technology, skills, systems integration and manufacturing strength.”

delivered: Prime Minister Narendra Modi with IAF’s Embraer EMB-145I AEW&C aircraft team

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SHOW REPORT AERO INDIA 2015 Global Supply Chain Hub The Prime Minister said that the foreign players can use India as part of their global supply chain and India’s frugal but sophisticated manufacturing and engineering services sectors can help reduce costs. Also India can be a base for export to third countries, especially because of its growing defence partnerships in Asia and beyond. He said the government was reforming defence procurement policies and procedures. “There would be a clear preference for equipment manufactured in India. Our procurement procedures will ensure simplicity, accountability and speedy decision making.” Prime Minister Modi pointed out that in India, the defence industry in the government sector alone employs nearly 2,00,000 workers and thousands of engineers and scientists. Their output is nearly $7 billion annually and also supports a very large pool of small and medium enterprises. Noting that India imports up to 60 per cent of the requirement of military hardware, he said there are studies that show that even a 20 to 25 per cent reduction in imports could directly create an additional 1,00,000 to 1,20,000 highly skilled jobs in India. “If we could raise the percentage of domestic procurement from 40 to 70 per cent in the next five years, we would double the output in our defence industry,” he said. A strong defence industry can boost investment, expand manufacturing, support enterprise, raise the technology level and increase economic growth in the country. The customary press conference by the Minister of Defence, Manohar Parrikar revolved around the fate of Dassault Aviation’s Rafale aircraft which was selected as the medium multirole combat aircraft (MMRCA) for the Indian Air Force. He dismissed all speculation saying that the contracts negotiating committee was going through its work and he would not answer one way or the other on the fate of the MMRCA tender. Similarly, the Chief of the Air Staff, Air Chief Marshal Arup Raha also parried questions related to MMRCA. The Rafale, however, had its share of flying display.

Photographs: Anoop Kamath, Sp Guide Pubns

Tata Group Dominates The Tata group displayed its end-to-end design to manufacturing capabilities including a range of solutions in the defence and aerospace sector in areas such as design, engineering, pro-

gramme management, manufacturing and product life-cycle management, among others. The combined order book of Tata companies operating in the sector is over `10,000 crore and in 2013-14 alone these companies have invested over `320 crore in their respective businesses. Their expected revenue from the sector for FY15 is over `2,500 crore. This year, nine Tata companies, namely Tata Advanced Systems Limited, Tata Power Strategic Engineering Division (Tata Power SED), Tata Motors, Tata Advanced Materials, Tata Steel (Specialty Steel business in Europe), Tata Technologies, TAL Manufacturing Solutions, Titan Company (Precision Engineering Division) and Tata Consultancy Services, exhibited. Tata Advanced Systems Ltd has a tie-up with US helicopter maker Sikorsky Aircraft Corporation which is committed to making the aircraft locally in India, as part of the large deals it is bidding for. Sikorsky will manufacture helicopters in India together with its existing partner, the Tata Group, or through new tie-ups. It now manufactures helicopters in Connecticut. It has a tie-up with Tata Advanced Systems Ltd to make S-92 helicopter cabins at a facility in Hyderabad for the global market. Airbus ‘Recruitment’ Drive Catches Attention The Airbus Group presented a wide range of products with cutting-edge technologies including commercial platforms, military aircraft/helicopters and radars. But the company was more excited about the ‘recruitment’ drive it organised at the show. In a unique initiative that could provide immense opportunities for talented engineers in India, the Airbus Group conducted a recruitment fair during the last two days. Airbus was looking for engineers with post-graduation or more for open positions in areas of avionics, structural analysis and repair. Yves Guillaume, President, India, Airbus Group, said that strong footprint it had developed in India over the years will come to play while supporting the government’s ‘Make in India’ campaign. “We have been used to partnerships in India as is shown by our long-standing collaborations with several Indian public and private companies as well as R&D organisations and academic institutions. We are enthusiastic about the ‘Make in India’ campaign and are ready to leverage our existing local partnerships and invest in new ones to make the most of it.”

(left) Surface-to-air Missile akash; (Right) IAI Harop UCAV on static display

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SHOW REPORT AERO INDIA 2015 Boeing Aligned with ‘Make in India’ Concept US aerospace and defence major Boeing showcased a broad range of its aerospace products, demonstrating its ‘alignment’ with Modi Government’s ‘Make in India’ campaign. Models highlighting Boeing’s defence capabilities included the C-17 Globemaster III strategic airlifter, P-81 maritime reconnaissance and anti-submarine warfare aircraft, AH-64D Apache attack helicopter, CH-47F Chinook heavy-lift helicopter, V-22 Osprey tilt-rotor aircraft, and ScanEagle unmanned airborne systems and weapons. It also featured models of commercial airplanes such as the Boeing 787 Dreamliner, 777X-9 and 737 MAX. Pratyush Kumar, President of Boeing India, told reporters that the company is committed to strengthen strategic partnerships with customers, the government, and industry aimed to support India’s economic expansion. BAE Systems Bags Contract BAE Systems secured a five-year contract worth GBP 18.5 million to provide the Hindustan Aeronautics Limited a comprehensive package comprising Ground Support Equipment, Spares, Support and Training for the Hawk Mk132 advanced jet trainer. Embraer had a Phenom 300 on static display. India is home to aircraft from all three of Embraer’s business units namely Embraer Commercial Aviation, Embraer Executive Jets and Embraer Defense & Security. “India is the country in the AsiaPacific that has the widest portfolio of Embraer Executive Jets – from the Phenom 100E to the Lineage 1000 – with 20 jets in operation,” said Claudio Camelier, Vice President of Sales & Marketing, Asia-Pacific and Middle East for Embraer Executive Jets. “These business jets are used by a number of corporations, private charter services, individuals, and government entities to increase travel efficiency. Its widespread appeal reflects the strength of our aircraft’s reliability, exceptional performance and comprehensive customer support.” Showcasing their products and solutions were several major weapons, technology/engine companies such as Honeywell Aerospace; Rolls-Royce; Elbit; Rafael; IAI; GE Aviation; Lockheed Martin; MBDA; Nexter; Russian Helicopters; Safran and many more. And the refrain of all of them at the show

was co-development and co-production that is going to be the road ahead for India. Narrow Escape On the second day of Aero India, two Flying Bulls aircraft scraped each other in the skies, creating a scare for a short while. The two aircraft which were part of the Flying Bulls aerobatic team were damaged and luckily there was no casualty. The two Zlin 50LX aircraft collided with each other at about 1500 hours. The single-seater, single-engine aircraft of the Czech Republic’s Flying Bull team were breaking-away from their formation, when the lead plane registered OK-XRA/0071 flown by 66-year-old Radka Machova tipped over the aircraft of the left-wing man of the team Jiri Saller OK-XRC/0073, triggering a minor turbulence. The two pilots quickly recovered from the unwanted developments, altered their flight path and later safely landed on the runway and parked their aircraft. However, the right-side wing of the Jiri Saller had suffered extensive damage. Breitling Wing walkers Show Stoppers They ruled the skies and the crowds below watched in awe. They danced in the skies and the crowds below went ecstatic. Stealing the limelight at Aero India 2015 were the Breitling Wing-walkers. The beautiful Wingwalkers were atop the biplanes with a safety harness, performing all kinds of acrobatics, mesmerising the nearly two lakh spectators which descended on Air Force Station, Yelahanka for the Aero India Airshow. The Breitling Wingwalkers are UK-based AeroSuperBatics who have been specialists in display flying for over 30 years and operate one of the best known and loved civilian air display acts in Europe. The wing-walking team has performed at over 2,500 different events successfully representing several large brand names in the form of very high profile sponsorship deals. The team of wing-walkers comprised Danielle Hughes (eighth season), Stella Guilding (sixth season), Freya Paterson (third season), Nikita Salmon (second season) and Lydia Beadle and Emily Guilding (both first season). SP

(left) anil ambani at the airshow; (Right) Flying Bull aircraft with the damaged wing

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ISSUE 3 • 2015

SHOW REPORT in pictures

sky painted: Catwalk or Skycats of the Scandinavian Aerobatic Team perform aerial stunts atop a Boeing Stearman biplane which leaves a trail of tricolour smoke

Photographs: Karthik Kumar / Sp guide pubns

breathtaking: (inset) various enthralling views of British aerobatics team Breitling Wingwalkers performing aerobatics over Yelahanka

ISSUE 3 • 2015

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SHOW REPORT in pictures

Wonders in Sky www.sps-aviation.com

ISSUE 3 • 2015

SHOW REPORT in pictures

dancing in the air: (background) Scandinavian Skycats perform aerial stunts atop a Boeing Stearman biplane; (inset) Skycats Aerobatic Team members perform breathtaking aerial stunts.

BACK FROM 2013 edition: (LEFT ABOVE) Red Bull aerobatic team in a formation QUITE IMPRESSIVE: (LEFT) Yakovlevs Airshow Aerobatic Team display their skills

ISSUE 3 • 2015

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SHOW REPORT in pictures

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ISSUE 3 • 2015

SHOW REPORT in pictures scintillating: dassault aviation’s rafale multi-role fighter’s flying display (LEFT TOP TO BOTTOM) BIRD OF MAMMOTH SIZE: US Air Force’s C-17 Globemaster III in the landing mode EYE IN SKY: Embraer EMB-145I fitted with the country’s first indigenous AEW&C on the runway CAN FLY! light combat aircraft tejas in flight BIG, MEDIUM & SMALL: US Air Force’s C-17 Globemaster III prepares to land; Embraer EMB-145I AWAITS ITS TURN; Indian Army’s Dhruv making ITS PRESENCE felt SWIRL OF WIND: hal’s light combat helicopter showcasing its capabilities SURPRISE VISIT: (Inset bottom right) usAF’s F-16 IN flight wonderful camaraderie: (inset, opposite page) British aerobatics team Breitling Wingwalkers WATCH rafale fighter takING-off FROM the tarmac

ISSUE 3 • 2015

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SHOW REPORT in pictures

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ISSUE 3 • 2015

open letter

to the finance minister

An Open Letter to

Mr Arun Jaitley, Hon’ble Finance Minister of India Rohit Kapur President, Business Aircraft Operators Association Dear Sir, One more year for the hype of the Union Budget and the one more year of disappointment for the Aviation industry! So what’s new? With due respect, I would like to state that the Aviation industry in general and the General & Business Aviation (GA/BA) industry in particular, stands disappointed with the Union Budget of 2015, with no direct or indirect mention for the sector. It is interesting to note that GA/BA sector in India started growing rapidly at the beginning of the new century, with the growth rate peaking at 26 per cent by the year 2007, encouraging investment even in remote areas. However, a number of reasons have halted this growth in the past few years, bringing it in the negative zone in the past couple of years. It is disappointing to see that the present, and most previous governments, have not realised the potential of air connectivity as an economic enabler to bring about progress in the remote areas of the country. While a full day is devoted to the Railway Budget and a huge amount of time spent on building the highways, Sir, it is disappointing that a forward looking and growth oriented Finance Minister such as you did not think it was worth your while to even mention the aviation sector in the entire budget speech. This can only come from a mindset which sees aviation in general, and GA/BA in particular, as an elitist industry, and not something which adds to the development of the country. May I point out that the present Prime Minister would not have been able to address 400 rallies in three months during the General Elections of 2014 and yet spend every night in Ahmedabad if it was not for the availability for GA/BA aircraft and helicopters! The demands of the industry are well known and projected to all concerned. It is time that the Government of the day starts addressing it, or else our dream of becoming the third largest aviation industry in the world by 2020 will remain just that...a dream! Sir, at the risk of repeating myself, once again, this is what we need: • Rollback of CVD on import on private aircraft. CVD is imposed to protect the domestic industry. However, there is no worthwhile aerospace manufacturing in India in the field of civil aviation, hence its rationale is not understood. It has proven to be counterproductive

ISSUE 3 • 2015

•

• •

•

and is the most important reason for the growth coming to a grinding halt. Not surprisingly, it has not added substantially to the revenues of the Government too, as facts can prove. This needs to go. Tax holiday on MROs to import spares and carry out MRO activities. 90 per cent of our MRO business is done outside India due to high taxations, resulting in outflow of foreign exchange. Our aircraft are being serviced in Sri Lanka and Bangladesh! Do we need to say more... Rationalise taxes on the ATF. This discussion has been going on for the past 15 years, yet nothing has happened. To encourage remote and regional connectivity, involve the State Governments and create infrastructure. Provide sops to investors in terms of waiving off landing/ parking charges, RNFC, allow self-handling and assure business by underwriting seats. The money spent by the State Governments will be more than made up by opening up the remote areas to industry, business and tourists. It will generate employment for the unemployed in the state and bring in new opportunities. Create an Essential Air Service Fund, as is done in most countries such as USA, Brazil, Australia, etc. As per estimates from experts, a one-time allocation of `1,000 crore to begin with, will open up remote connectivity in the country. This is less than what the present Aam Aadmi Party (AAP) Government has given in terms of subsidies to Delhi citizens for subsidised electricity and free water... Allocate funds to develop aviation infrastructure. We need low-cost airports, heliports to increase connectivity, aviation skill development institutions and special GA airports. Unless we cater and allocate for them, this will never happen. Lastly, and most important, allocate funds to reconstitute the DGCA and BCAS as independent bodies to be run by technocrats and professionals, rather than an extension of bureaucrat’s domain. The Civil Aviation Authority (CAA) is an idea which is past its time and needs to be implemented. This is a specialised industry and needs to be managed as such. Domain knowledge is essential, failing which the present state will continue. Yours sincerely.

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REGIONAL AVIATION

TAXATION

TAXING TAXES Airline operators suggest that an airport should depend on non-aeronautical revenues to shore up its balance sheet and not tax them, as a losing airline would translate to a losing airport

Illustration: Anoop kamath

By R. Chandrakanth

Airports are a critical part of transport infrastructure. They are engines of growth. For a holistic growth of commercial airliners, regional airliners, general aviation aircraft and airports themselves, there has to be a judicious mix of modern and no-frills airports. Otherwise, it would be a skewed approach, not benefiting the sector per se. For quite some time now, there has been a clamour by airlines to approach the industry pragmatically, taking into consideration the exigencies of the various business models. What is good for a scheduled operator may not be alright for a scheduled regional operator or for a non-scheduled operator. While it certainly is a matter of pride that we have worldclass airports in Delhi, Mumbai, Bengaluru and Hyderabad,

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they nevertheless have come in for criticism due to the high cost of operations for airlines. Low-cost carriers, regional carriers and general aviation operators have to pay tariffs which they can ill afford. At the same time, airports do need to survive. It is certainly a toss-up on what should take precedence. Airline operators suggest that an airport should depend on non-aeronautical revenues to shore up its balance sheet and not tax them. Reduce High Airport Fees Efforts are on for quite some time to impress upon the authorities that India’s civil aviation policy should aim to reduce high airport fees, such as add-ons made up of land rent, throughput,

ISSUE 3 • 2015

REGIONAL AVIATION TAXATION

Air Costa Statement showing Various Charges levied by Airport Operators Airport wise (`) Station

Airport Operator

Aircraft Type

RNFC Charges per flight

TNLC Charges per flight

LANDING per flight

PSF per pax

UDF per pax

Parking Per Hr

Service Tax rate

AMD

AAI

E-190

Based on sector

–

8,316

207

–

12.36%

AMD

AAI

E-170

Based on sector

–

207

–

12.36%

BLR

BIAL

E-190

Based on sector

–

15,000

130

342

12.36%

BLR

AAI

E-190

Based on sector

6,546

–

12.36%

BLR

BIAL

E-170

Based on sector

–

130

342

12.36%

BLR

AAI

E-170

Based on sector

6,546

–

12.36%

CJB

AAI

E-190

Based on sector

–

207

–

12.36%

CJB

AAI

E-170

Based on sector

–

207

–

12.36%

HYD

HIAL

E-190

Based on sector

–

8,316

178

–

12.36%

HYD

AAI

E-190

Based on sector

6,546

–

12.36%

HYD

HIAL

E-170

Based on sector

–

178

–

12.36%

HYD

AAI

E-170

Based on sector

6,546

–

12.36%

JAI

AAI

E-190

Based on sector

–

8,316

207

–

12.36%

JAI

AAI

E-170

Based on sector

–

207

–

12.36%

MAA

AAI

E-190

Based on sector

4,910

15,000

207

–

403

12.36%

MAA

AAI

E-170

Based on sector

4,910

–

207

–

12.36%

TIR

AAI

E-190

Based on sector

–

207

–

12.36%

TIR

AAI

E-170

Based on sector

–

207

–

12.36%

VGA

AAI

E-190

Based on sector

–

207

–

12.36%

VGA

AAI

E-170

Based on sector

–

207

–

12.36%

VTZ

AAI

E-190

Based on sector

1,115

–

207

150

12.36%

VTZ

INS DEGA

E-190

Based on sector

–

8,316

–

12.36%

VTZ

AAI

E-170

Based on sector

1,115

–

207

150

12.36%

VTZ

INS DEGA

E-170

Based on sector

–

6,237

–

12.36%

Source: Air Costa

taxes and infrastructure fees and into-plane fees charged by the service provider for fuelling and de-fuelling aircraft. In a reply to the Ministry of Civil Aviation, a consulting firm pointed out that when compared to other regional international hubs, India‘s add-on fees, which are added to the cost of ATF, make up a much more significant percentage of the international benchmark ATF price. India‘s high add-on fees are one of the major contributors to the high price of ATF, which negatively affects the ability of India‘s airlines to grow individually, raises the cost of air carrier services to consumers and reduces the pace of overall growth of the sector. Furthermore, the consulting company said that high addon fees also deter foreign airlines from re-fuelling in India, thus limiting the ability of India‘s airports to compete as international hubs. Therefore, reducing the add-on fees will help India‘s civil aviation sector grow. Reducing add-on fees to reflect fee levels in other regional hubs such as Kuala Lumpur, Hong Kong, Singapore Bangkok and Seoul will also help India compete for international airline business with the above mentioned regional hubs.

ISSUE 3 • 2015

Presently, the government has started laying emphasis, rightly so, on regional and remote area aerial connectivity. For that to happen, the government has to incentivise the airport operator, the regional airlines and the general aviation segment. To improve regional connectivity and to develop regional hubs, a committee was formed under the Chairmanship of a Joint Secretary in the Ministry of Civil Aviation for drafting policy on creation of Airport Hub. Under this policy, regional airlines will be encouraged by providing suitable regulatory and fiscal incentives. Airports Modernisation In the recent past, we have seen rapid modernisation of airports which is welcome. With almost $10 billion of investment in airports over the last five years, airport charges are expected to increase in the coming months, particularly at the major metros. Delhi and Mumbai airports, which together account for 40 per cent of traffic in India, will completely pass on $5 billion of expenditure to passengers. An additional nine airports are

Continued on page 32...

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REGIONAL AVIATION

AIRLINE

elegant and comfortable: Interior of EMBRAER 170

redefining air travel: Air Costa E-170

Photographs: Embraer

Air Costa’s USP: Comfort Air Costa’s unique selling proposition is it offers comfortable seating in economy class, unlike any other airline By R. Chandrakanth

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ISSUE 3 • 2015

REGIONAL AVIATION AIRLINE

In October 2014, Vijayawada-based regional airline Air Costa celebrated the first anniversary of the launch of its operations and it flew the invited journalists from across India on its Embraer E-Jets 170 and 190. It was an opportunity for journalists to experience flying on their aircraft. Air Costa made use of this occasion to showcase to the media that this carrier is different from other players. And how is Air Costa different? The unique selling proposition (USP) of the airline is that it offers comfortable seating in economy class unlike any other airline. The Air Costa Embraer E-170 in which I had the privilege to travel, has 67 seats, 60 in Economy and seven in Economy Plus. The seat pitch is 36” in Economy Plus and 31” in Economy with ample leg room. The overhead storage bin capacity is 36.3 kg (80 lb). The best part of the interiors of the airliner was that it had plush leather seats, both elegant and comfortable. The contemporary Embraer E-170 and E-190 are highly efficient with spacious seats and best in-class leg room. The best part is that there is no ‘middle seat’ and one can enjoy the luxury of a wider aisle with larger windows, giving a good view of the world around the aircraft while cruising at 30,000 feet. Air Costa’s Embraer E-190s are all-economy, four abreast single-aisle cabin with 112 seats extended over 28 rows with a 29/30-inch seat pitch. Each of the seats is as wide as 18.25 inches, armrest to armrest, which is reportedly a good 1.25 inches wider and more comfortable that the seats on any of the other low-cost carrier such as SpiceJet that operate the Boeing 737, IndiGo, GoAir and AirAsia India that fly the Airbus A320. The seat comfort is going to be a clincher as passengers start experiencing Air Costa on the nine destinations it is presently flying to. It is a sure bet on the regional network and possibly on short-haul international flights in due course. They are the

‘right aircraft’ not just for the airline operator, but also for the passenger who will enjoy higher levels of comfort with just a little addition of space. Air Costa is redefining air travel in the domestic skies by its cabin room and seating comfort. Air Costa states that it is committed to its customers offering what they state each letter of Costa stands for : C – Convenient schedule; O – On-time performance; S – Service par excellence; T – True value for money; and A – Absolute seating comfort. In October 2014, Air Costa announced that it would soon alter its status from a regional airline to a national operator, but continue to use Embraer E-Jets. The airline is working out modalities for pan-India connectivity and it plans to have hubs in different regions for easy operation. The airline also has started carrying cargo to and from these destinations – Ahmedabad, Bengaluru, Coimbatore, Hyderabad, Jaipur, Tirupati, Vijayawada and Visakhapatnam, thus adding to its revenue stream. The airline announced operational profits in December 2014. The good news is that on the success of Air Costa, we have another start-up airline, FlyEasy from Bengaluru, which reportedly is going for Embraer E-Jets. On regional routes, we are soon going to have more Embraers flying. Remember, Air Costa has placed a huge order for 50 E-Jets E2 and another 50 optional with deliveries scheduled to begin in 2018. The civil aviation market in India is opening up and Air Costa is targeting Tier-II and Tier-III cities. To service this market, the airline has ordered 25 E-190 E2 and 25 E-195 E2 jets, with a capacity of between 98 and 118 seats. In 2015, Air Costa plans to add four E-190 aircraft to connect Bhubaneswar, Lucknow, Varanasi, Chandigarh, Indore and Pune, besides exploring the possibility of connecting Delhi. Happy flying ! SP

...Continued from page 30 expected to see increases in charges. The proposed passenger fees will result in an increase in fares of a quantum that is likely to impact demand and traffic volumes. Landing Charges Landing charges in Delhi would remain constant at over `59,000 for a large aircraft coming from abroad and over `30,000 for a similar plane from a domestic destination. These charges at Mumbai airport were `60,000 and about `29,000 for large airplanes operating on international and domestic routes respectively. The aeronautical tariff, approved by the Airports Economic Regulatory Authority (AERA) for these two major metro airports would continue till the final determination of the tariffs for five years from 2014 till 2019, whichever is earlier. The tariff structure of aeronautical services other than ANS, at major airports is airport-specific. Tariffs for aeronautical services also referred to as Airport Services, pertaining to first control period financial year 2011-12 to 2015-16, have been approved by AERA in respect of Chennai, Kolkata and Guwahati airports. In respect of the other major airports, the existing tariff is being continued. The following figure gives an example of airport taxes levied at Chennai, an airport controlled by the Airports Authority of India (AAI). Air Costa has clarified that the airport taxes and charges such s RNFC, TNLC, landing, parking are in proportion to MTOW and seat count of the aircraft and that these charges are fair. Air Costa is the only one regional airline operator in the private sector and if we need more operators to come into the

ISSUE 3 • 2015

Chennai International Airport Landing, Parking and Housing charges (w.e.f. 1.4.2014) Landing Charges per single landing Weight of Aircraft

Rate per Landing – International flight

Rate per Landing – (other than International flight)

Upto 100 MT Above 100 MT

`613.60 per MT `61,360/- + `824.50 per MT in excess of 100 MT Parking Charges Rate per MT per Hour

`312.50 per MT `31,250/- + `419.90 per MT in excess of 100 MT Housing Charges Rate per MT per Hour

Housing and Parking Charges Weight of Aircraft Upto 100 MT Above 100 MT

`8.40 per MT `16.70 per MT `840/- + `11.10 per MT `1,670/- + `22.20 per MT per per hour in excess of 100 MT hour in excess of 100 MT

Source: AAI

regional airline business, they need to be incentivised and airport taxes are one. Air Costa has been operating to nine destinations and the landing charges at Bengaluru and Chennai are at `15,000, almost double of what it is in Hyderabad. Regional airliners would benefit if taxes were ‘reasonable’ and reiterate that a losing airline translates into a losing airport. SP

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BIZAVINDIA

CONFERENCE

Kurt Edwards, Director General of IBAC, G. Asok Kumar, joint Secretary of Civil Aviation, Peter Bunce, President and CEO of GAMA, and Rohit Kapur, President, BAOA

Time to Think Small

Photographs: Baoa

The government had formed a sub-committee in the Ministry of Civil Aviation to look into the concerns of the general aviation segment and a course correction is expected

By R. Chandrakanth

On the eve of Aero India 2015, Business Aircraft Operators Association (BAOA) held its first “BizAvIndia Conference” to highlight the challenges and opportunities for the General Aviation industry in India. The thinking platform included industry experts, government officials and aviation aficionados and the general consensus has been that the industry has to act cohesively and collectively to get the government to look at the huge benefits of General Aviation to the national economy itself. Inaugurating the BizAvIndia Conference in Bengaluru, the Joint Secretary of Civil Aviation, G. Asok Kumar, said there was a realisation in the ministry that the General and Business Aviation segment of the aviation sector had been neglected and now the Government of India is changing its focus and started thinking small, i.e. shifting focus to small aircraft.

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Asok Kumar said the Government had formed a sub-committee in the Ministry of Civil Aviation to look into the concerns of the General Aviation segment and the committee had put forth a number of points to the Union Finance Minister. Arun Jaitley on how aviation can be an engine of growth. A course correction is taking place, he assured the industry. FAA Downgrade to be Revoked Soon The Joint Secretary listed out the initiatives that the government was taking, starting with getting the US Federal Aviation Authority (FAA) downgrade revoked. The Ministry is working on enhancing safety measures, though India had one of the best safety standards and the FAA downgrade should be revoked soon.

ISSUE 3 • 2015

BIZAVINDIA CONFERENCE Scheduled Commuter Airlines In the next few months, the government will be introducing a unique concept of Scheduled Commuter Airlines not only to enhance regional and remote area connectivity, but also to encourage the General Aviation sector to grow. The Ministry is working on revising the Route Dispersal Guidelines (RDG) and this should be finalised soon. The plan is to have code share between scheduled operators (airlines) with non-scheduled operators (General and Business Aviation operators). Cluster Approach Asok Kumar said that as ground handling charges at airports were high and the small operators were finding it difficult, there was a plan to have a group of non-scheduled operators (NSOPs) to have common maintenance facility. This would bring down costs. International Perspective The President and CEO of GAMA, Peter Bunce, in his keynote address said the potential of the General and Business Aviation sector ‘is truly phenomenal’, but India need to set conditions right for its growth through proper policies, infrastructure creation, etc. The challenges were many including the perception that Business Aviation did not add value to the economy. This lack of understanding that it can add substantial value has to be driven home and it is happening. The impediments for the sector are: no coherent regulatory approach; punitive taxes and charges; lack of General Aviation infrastructure; economic disincentives; poor airport access, etc. As regards maintenance, repair and overhaul (MRO) facilities, he said, India’s MRO market potential is $700 million and that presently 90 to 95 per cent of MRO work goes outside India. With regard to taxation, the government he hoped would realise that the tax revenues from the sector were minimal and that it would be better to encourage the industry with better tax structure. The import tax and CVD on aircraft in India were among the highest in the world. Looking ahead, Bunce mentioned that regulation should be proportionate and it should align with global practices; focus on aviation safety and also align with national economic and fiscal regimes. ISBAO benefits The Director General of IBAC, Kurt Edwards talked about the benefits of implementing International Standards for Business Aviation Operations (ISBAO). There are 750 operators around the world and India had only one operator who was audited under ISBAO – that is SRC Aviation. The certificate was presented to SRC Aviation at the conference. Edwards said safety management systems would prevail all over the world sooner than later. New Government, New Pace In his welcome address, the President of Business Aviation Operators Association Rohit Kapur, said that the association has been growing steadily since it began in 2011. It now has 77 members and was filling a void in the industry. Kapur said that with the new government coming in, there has been a new pace to development. “It is a positive change. We are confident soon enough, things will start changing.” Remote and Regional Air Connectivity Group Captain R.K. Bali (Retd), Secretary of BAOA, in his presentation said that RDGs were issued two decades ago and only

ISSUE 3 • 2015

Rohit Kapur, Bharat Malkani, Pulak Sen and Air marshal b.k. Pandey (retd)

last month new proposals had been put forward. There has been resistance from airlines for various reasons, but the BAOA has welcomed them and given further suggestions. Captain Vinay Garg of Universal Aviation Services (UAS) said infrastructure needed to be created if General Aviation had to grow. It was time the government allowed private jet operators to use airports such as HAL in Bengaluru, Begumpet in Hyderabad, open FBO at Delhi, use space at Safdurjung airport and make best use of the 450 unused or abandoned airports. Aircraft Management operators In a session on opportunities, Jayant Nadkarni, co-founder of Invision Air, said the concept of aircraft management would be the next thing in India. Presently, of the 120 non-scheduled operators, 110 are owners and operators themselves and many of them were unaware of aircraft management nuances. The benefits of aircraft management concept, he said, were many including readymade industry connectivity, flight department, SMS, better planning, faster off the block and more efficient operations, economies of scale (lower insurance, maintenance), access to additional aircraft and additional crew as well as de-risking and protecting owners. MRO Opening Up In his opening remarks, Air Marshal B.K. Pandey (Retd), Senior Editor SP’s Aviation and Editor, SP’s AirBuz said that there was scope for synergy between military and civil MRO industry. This was immediately feasible where there was commonality of aircraft between civi and military aviation. The Embraer platform operated in the IAF and by airlines was a good example. The IAF is seriously considering some maintenance activities to the civilian MRO industry and has in fact floated a tender for overhaul of MiG-29 combat aircraft and An-32 military transport aircraft. Pulak Sen, Founder Secretary General of MRO Association of India, said India’s current MRO market size is estimated to be around $700-800 million. India’s scheduled airlines fleet currently at around 399 is expected to grow about 1,200 aircraft by 2023. The Indian scheduled airlines will spend approximately $1.6 billion every year for MRO services in the next ten years. Around 40 per cent of MRO spend by airlines goes for engines. More than 500 Airbus A320neos have been ordered

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BIZAVINDIA CONFERENCE

(From Left) Ujjwal, Amber Dubey, Luis Pinto, Roger Whipp, Bhupesh Joshi, Air Cmde A.M. Ganapathy, Rohit Kapur and Group Captain R.K. Bali (Retd)

by Indian operators i.e. more than 1,000 engines of a particular type will be flying in India. There is a business case for the suitable engine MRO to be started in India, Safety Management Systems (SMS) Air Commodore A.M. Ganapathy (Retd) of CBAS said Indian GA is three years behind ICAO mandated date for SMS implementation by November 2012. DGCA has informed NSOP holders

to implement SMS by December 2014. However, a prescriptive method is no solution and a collaborative approach to SMS implementation is sought in keeping with Para 2.4.4 of ICAO Doc 9734.The implementation of ISBAO needs serious consideration. Luis Pinto of NetJets explained the features of fractional ownership and this included multiple aircraft type availability, zero down time, 100 per cent guaranteed availability 365 days and 24 x 7, aircraft ready on just ten hours notice in Europe and the US, unrivalled recovery options and back-up aircraft for business critical flights. Captain S.K.S. Panwar, Senior Vice President & Chief Pilot at Global Vectra Helicorp Ltd, in his presentation on helicopters said the total fleet strength was 262 and mostly used for heli-charters (over 70 per cent). There were opportunities in emergency medical services (HEMS), power sector, heli-sports, surveillance, etc. and there was need to import medium/heavy helicopters to go up to 300 nautical miles and beyond into the sea. Captain Uday Gelli, President (Western region), Rotary Wing Society of India, said that as many as 32 helicopters are being used for its logistic air support in this geographical area alone. Today, ONGC is the largest public sector company in India involved in the production of crude oil, gas and value-added products like LPG, NGL and C2-C3 with an annual turnover of `83,400 crore in the FY 2013-14. Since most of the oil and gas produced indigenously comes from ONGC’s offshore fields, it is also the largest user of helicopters in India. SP

BizAvIndia Awards Conferred to Recognise Excellence in Business & General Aviation

nstituting a benchmark for Business & General Aviation (BA & GA) excellence in India, the Business Aircraft Operators Association (BAOA) declared winners of maiden BizAvIndia Awards, in presence of an august gathering from global aviation fraternity at the sidelines of Aero India 2015. The winners were adjudicated by an eminent panel comprising of Kanu Gohain, Ex Director General, DGCA; Inderjit Sial, President & MD, Textron India; Kapil Kaul, CEO, CAPA India; and Amber Dubey, Head Aerospace & Defence, KPMG. BizAvIndia Hall of Fame was conferred to Naveen Jindal, Chairman of JSPL for his relentless contributions and towards the growth of Indian BA & GA sector. Nominations for ‘Operator of the Year’ were invited across Non-Scheduled and Private Operators in the country through an online application. This award was jointly presented to Air Charter Services & Himalayan Heli Services after a thorough analysis based on stringent criteria for safety, operations, fleet and crew adequacy. ‘Award for Innovation’ was bestowed upon Mahindra Aerospace for opening up a new avenue and employment opportunities for industry by manufacturing utility aircraft and aero structures that meet the varied needs of the global markets, from its facility in India. Expressing his thoughts on the occasion, Rohit Kapur, President, BAOA, said: “BizAvIndia Awards have been instituted as the most revered distinction for Business & General Aviation organisations and contributions towards the sector in India. We hope the awards will set a gold standard for recognising merit within the industry.” “These awards are a welcome initiative by BAOA to recognise and promote General Aviation in India,” said Inderjit Sial, President & MD, Textron India.

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Winners of BizAvIndia Awards 2015 (L-R) air Marshal J.S. Gujral (retd) of Mahindra Aerospace, Harsh Vardhan of Himalayan Heli Services, Semoun Jolly of Air Charter Services & Col. Sanjay Jhulka of India Fly Safe (on behalf of Naveen Jindal)

The BizAvIndia Awards 2015 were presented in partnership with Textron, a multi-industry company known around the world for its powerful brands such as Bell Helicopter, Cessna, Beechcraft & Hawker. BizAvIndia Awards are a part of BAOA’s flagship initiative ‘BizAvIndia’, to bring Indian BA & GA industry into focus and build cohesion between stakeholders, regulators and the government.

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ISSUE 3 • 2015

hall of fame

Elinor Smith, a pioneering American aviator, was the youngest licensed pilot in the world. Her career was studded with numerous records and feats of great daring. She was also the first female test pilot of two aircraft companies. An amazing 80 years elapsed between her first flight lesson and her final flight. And she lived to be almost a hundred. Born Elinor Regina Patricia Smith in New York City on August 17, 1911, her first plane ride was at the tender age of six and her flying lessons commenced when she was barely 10. Her first instructor found that her feet could not reach the rudder pedals despite extra cushions behind her back but he solved the problem by attaching blocks to the pedals. After her father purchased a Waco 9 biplane and hired a dedicated flight instructor she made rapid progress. Her enthusiasm for aviation knew no bounds. She was willing to forego her other interests to practise flying early in the morning, before leaving for school. However, on her father’s orders, she was not permitted to take-off or land, so as not to risk her safety. Strangely enough, it was her mother who lifted the ban when the opportunity arose (her father happened to be out of town). And it needed only ten days of intensive instruction for Elinor to go solo. She was just 16 at the time. Following a personal appeal to Orville Wright she was awarded the coveted Fédération Aéronautique Internationale (FAI) flying licence. Within weeks she set an official light aircraft altitude record of 11,889 feet flying her Waco 9. One of Elinor’s most spectacular and dangerous feats happened in October 1928 after a certain barnstormer insinuated that she was too scared to fly under a bridge. She decided to prove him wrong by clearing not one but four of New York City’s bridges – the Queensboro, Williamsburg, Manhattan and Brooklyn bridges. And she completed the mission without incident. Fortunately for her, those early days of aviation were relatively easy-going, with only minimal regulation. Whereas a pilot trying the same stunt today would probably have been summarily stripped of his/her licence, Elinor was grounded for just 10 days. But she became an instant celebrity. According to the Cradle of Aviation Museum, Elinor Smith is the only person ever to have flown under these four bridges.

It was a time when aviation record setting was in its heyday and Elinor was soon in the thick of action. First up was the women’s solo endurance record. In January 1929, she took off at dusk in an open cockpit Bruner Winkle biplane. Her plan was to fly through the night and remain airborne as long as possible in broad daylight before landing. It was a freezing night with the temperature about −18° Celsius. Finally the effect of cold on her body and the aircraft was too severe to bear, so she decided to attempt a night landing – something she had

ELINOR SMITH (1911-2010) A poll of licensed pilots held in October 1930 selected her as the “Best Woman Pilot in America”, over other notable contenders for the title

never tried before. Somehow she managed to put the plane down without too much trouble and her airborne time of 13½ hours was enough to qualify as a new women’s solo endurance record. In April she increased her endurance mark to 26½ hours, this time in a six-passenger Bellanca CH monoplane, an aircraft of heavier horsepower and weight than had ever been flown by a woman. Later that year, she also set a women’s world speed record of 190.8 miles (307 km) per hour in a Curtiss military aircraft. Also in 1929, Elinor and Bobbi Trout (co-

ISSUE 3 • 2015

pilot) set the first official women’s record for endurance with mid-air refuelling. They remained airborne 42½ hours in a Sunbeam biplane In June 1929, the Irving Parachute Company engaged Elinor for a 6,000mile (9,656-km) tour of the United States. Flying a Bellanca Pacemaker she became the world’s first female executive pilot. She was also the pilot for an unprecedented seven-man parachute drop at the air races in Cleveland, Ohio. In 1930, she became the first woman test pilot for Fairchild Aviation and Bellanca Aircraft Corporation (later AviaBellanca). In May 1930, before she turned 19, Elinor Smith acquired a transport licence awarded by the U.S. Government’s Department of Commerce, becoming the youngest pilot ever to do so. A poll of licensed pilots held in October 1930 selected her as the “Best Woman Pilot in America”, over other notable contenders for the title, including Amelia Earhart. She had a close brush with death in March 1931, while attempting to set another world altitude record. Her altitude of 32,576 feet was indeed a new women’s record, but just short of the men’s mark. While still above 30,000 feet she lost consciousness. The plane’s engine also quit and it started gliding back to earth with Elinor still out cold. Fortunately, she came to her senses, managed to coax the engine to restart and finally succeeded in landing safely. Elinor’s marriage in 1933 and the births of her four children kept her grounded for over 20 years. But after her husband died in 1956, she resumed flying. In April 2001, at the ripe old age of 89, she flew an experimental C33 Raytheon Agate, Beech Bonanza. She once wrote: “I had been brought up to think that anyone could do anything he or she put his or her mind to, so I was shocked to learn that the world had stereotypes it didn’t want tampered with. In an age when girls were supposed to be seen and not heard, look beautiful, and occasionally faint, I didn’t seem to fit in anywhere.” Never one to shy away from a challenge (recall her acceptance of the barnstormer’s dare when she was not yet 18), she fought such attitudes head-on. Elinor Smith died on March 19, 2010. SP — Joseph Noronha

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News Digest Military Asia-Pacific Chinese AWACS Aircraft for Pakistan

The Pakistan Air Force (PAF) has introduced the Chinese-made ‘Karakoram Eagle’ airborne early warning aircraft. The official commissioning ceremony was held at the Masroor Airbase of PAF near Karachi, in the presence of Pakistani Prime Minister Nawaz Sharif. The aircraft will be operated by No. 4 Squadron based there. The aircraft, a variant developed to Pakistani requirements and designated ZDK-03, is equipped with a Chinese AESA radar mounted on the Shaanxi Y-8F600 four turboprop engine transport aircraft. Pakistani websites say the radar has a greater range than that of the PAF’s other AEW&C aircraft, the Saab 2000 Erieye. The ZDK-03 is also reportedly equipped with a sophisticated ESM system that can intercept and analyse signals from airborne and surface emitters.

New Fighter Jet for PLAAF

China’s air force will soon commission the J-10B fighter jet, the most advanced military aircraft the country has ever developed on its own as per information released by military observers. Experts said their gray paint scheme indicates that they will soon be delivered to the PLA Air Force. Du Wenlong, a senior researcher at the PLA Academy of Military Science, said the J-10 family will be developed into a multi-task platform that can perform air-to-ground strikes and also can be used in sea-based operations. The J-10B is an improved variant of the J-10A, which is manufactured by the Chengdu Aircraft Industry Group, a subsidiary of the state-owned giant Aviation Industry Corp of China.

Saudi Arabia Replaces India as Largest Defence Market for US

IHS released its annual Global Defence Trade Report, which examines trends in the global defence market across 65 countries and is based upon 40,000 defence programme deliveries from IHS Aerospace, Defence & Security’s Markets Forecast database. In 2014, global defence trade increased for the sixth straight year to $64.4 billion, up from $56.8 billion. Highlights from the IHS Global Defence Trade Report are: • Saudi Arabia topped India to become the largest defence market for US. • The US supplied one-third of all exports and was the main beneficiary of growth.

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• S audi Arabia and UAE imported more than all of Western Europe. • China is now the third largest importer of defence equipment, up from fifth. • South Korea is the rising star of AsiaPacific exports. • Despite a record 2014, Russian defence exports are set to drop. • Saudi Arabia, Indonesia, Sweden and Nigeria are the UK’s top trading partners.

Americas

AgustaWestland

Boeing, Royal Australian Air Force (RAAF) test Extended Range Weapon

The Boeing Joint Direct Attack Munition Extended Range (JDAM ER) demonstrated significant range increase while maintaining its expected accuracy during flight test conducted by Boeing and the RAAF. The test centred on a new wing kit that, when used in conjunction with the weapon’s guidance kit, increases the bomb’s range from approximately 24 km to over 72 km, as shown during tests above the Woomera Test Range in Australia.

Lockheed Martin’s Legion Pod Takes Flight

Lockheed Martin has introduced Legion Pod, a multi-function sensor system that supports collaborative targeting operations between multiple aircraft in radar-denied environments. Combining Lockheed Martin’s IRST21 infrared sensor with advanced networking and data processing technology, Legion Pod provides high-fidelity detection and tracking of airborne targets. Designed for flexibility, Legion Pod also accommodates additional sensors within its current structure to address diverse mission requirements across a variety of platforms.

US Export Policy for Military Unmanned Aerial Systems (UAS)

QuickRoundUp

The US has established a new policy designed specifically for military and commercial UAS of US origin. This new policy, governing the international sale, transfer and subsequent use of USorigin military UAS, supplements and builds upon the US Conventional Arms Transfer Policy and is consistent with the requirements of the Arms Export Control Act and the Foreign Assistance Act which govern all US military transfers. The new export policy is part of a broader US UAS policy review which includes plans to work with other countries to shape international standards for the sale, transfer and subsequent

The UAE has ordered nine AgustaWestland 139 helicopters, worth approximately $200 million and is the first aircraft contract to be announced at IDEX defence show in Abu Dhabi. Out of this six helicopters would be used for search and rescue missions and remaining for VIP flights.

Airbus

Air Lease Corporation, the Los Angeles-based aircraft leasing company, has firmed up its order for 55 Airbus aircraft, comprising 25 A330-900neo and 30 A321LR - the very latest members of Airbus’ modern, fuel-efficient aircraft family. ARKIA Israeli Airlines has signed a memorandum of understanding with Airbus for up to four A330-900neo aircraft. The commitment makes ARKIA the first Airbus wide-body customer in Israel and the first customer for the type in the region.

Airbus Helicopters

A further addition to the Royal Thai Army’s rotorcraft fleet has been the six light-utility EC145 T2 helicopters from Airbus, which is the latest and most powerful model in Airbus Helicopters’ proven EC145 light twin-engine helicopter family.

Bell Helicopter

Bell Helicopter has announced that SECO International, Japan, has issued a letter of intent to order 10 Bell 505 Jet Ranger X helicopters. Bell 505 is a five-seat, single-engine, turbine helicopter leveraging Bell Helicopter’s proven technology and is backed by nearly half a century of experience. Bell Helicopter, a Textron Inc company, has announced that the Bell 505 Jet Ranger X’s second flight test vehicle has successfully achieved its first flight. The first Bell 505s flight test vehicle completed its maiden flight in November 2014 and the programme has progressed, with additional flight tests and numerous practice auto-rotations.

Boeing

On the last day of the International Defence Exhibition and Conference, UAE Armed Forces announced the purchase two military transport C-17 aircraft from Boeing Company to boost its transport fleet. The value of the deal is about $618 million. Boeing has stated that Air Tahiti Nui has announced a commitment to purchase two 787-9 Dreamliners. The order, valued at $514 million at current list prices, will be posted on Boeing’s Orders and Deliveries website when finalised. UK’s Ministry of Defence has signed a $649 million five-year contract with Boeing for the in-service support of the Chinook helicopter, saving the taxpayer over $231 million.

ISSUE 3 • 2015

News Digest QuickRoundUp

Boeing and Transavia Company, the latter a wholly owned subsidiary of the Air France KLM Group, have announced an order for 17 Next-Generation 737-800s, including options for three additional airplanes. The order, valued at $1.6 billion at current list prices, was previously booked and attributed to an unidentified customer on the Boeing Orders and Deliveries website. Boeing and Korean Air have finalised an order for five 777 Freighters. The order, valued at more than $1.5 billion at current list prices, will add further efficiency and reliability to Korean Air’s all-Boeing freighter fleet.

Bombardier

Bombardier Commercial Aircraft has announced that Société Luxembourgeoise de Navigation Aérienne SA (Luxair), the national airline of the Grand Duchy of Luxembourg, has signed a firm purchase agreement for three Q400 NextGen aircraft and options on an additional two Q400 NextGen aircraft. Based on the list price the firm order is valued at approximately $100.3 million and could increase to $169.5 million should Luxair exercise all its options. Bombardier’s CS300 airliner finally made its maiden flight on February 27, during which it flew for practically five hours and reached an altitude of 12,500 m and a speed of 470 kmph. The technologically advanced CSeries aircraft will provide operators with an all-new family of single-aisle mainline jets specifically designed for the 100to 149-seat market segment.

CFM

In 2014, as CFM International celebrated its 40th anniversary, the company experienced the highest levels of new engine orders and production in its history. CFM logged orders for a total of 4,244 engines, including 1,527 CFM56 engines (commercial, military and spares) and 2,717 LEAP engines valued at more than $50 billion at list price as compared to $31 billion at list price in 2013.

Honeywell Aerospace

In its 17th annual Turbine-Powered Civil Helicopter Purchasing Outlook, Honeywell Aerospace expects that 4,750-5,250 civilian-use helicopters will be delivered during 2015-19. Demand in BRIC countries (Brazil, Russia, India and China) continues to ebb and flow with stronger results recorded for India in the 2015 survey, while planned Brazilian and Chinese purchase rates slipped moderately but new helicopter purchase-plan rates still exceed the world average.

Korean Air

South Korea’s top air carrier Korean Air has signed a memorandum of understanding with Europe’s Airbus to jointly bid for Seoul’s indigenous fighter development project. Code-named KF-X, the $8.3-billion project calls for South Korea to develop fighter jets of the F-16 class to replace its ageing fleet of F-4s and F-5s. Some 120 jets are to be introduced into service starting around 2025.

use of military UAS. Some aspects are asunder: • Enhanced controls on the export of US origin military UAS. • The new export policy puts in place stringent conditions on the sale or transfer of military UAS. • The new policy also maintains the US’ long-standing commitments under the Missile Technology Control Regime (MTCR), which subjects transfers of military and commercial systems that cross the threshold of MTCR Category I (UAS that are capable of a range of at least 300 km and are capable of carrying a payload of at least 500 kg). • US will require recipients of US origin military UAS to agree to certain principles guiding proper use like use of these systems in accordance with international law. Armed and other advanced UAS are to be used in operations involving the use of force only when there is a lawful basis for use of force under international law, such as national self-defence.

Show Calendar

Europe

19–21 May EBACE 2015 PalExpo, Geneva, Switzerland www.ebace.aero

Germany’s Revised Helicopter Deal

The first major arms deal concluded by German’s Defence Minister Ursula von der Leyen is more expensive than expected, as the acquisition of 168 combat and transport helicopters will cost a total sum of $9.86 billion. That’s about $9.4 million more than the Ministry of Defence’s previous plan, concluded in 2013 by Leyen’s predecessor. According to the draft agreement, manufacturer Airbus Helicopters will receive $9.86 billion in payment for a total of 168 Tiger, NH90 and MH90 Sea Lion helicopters. The deal now agreed with Airbus calls for the following changes to the original contract: • 68 instead of 80 Tiger combat helicopters for $4 billion. • 82 instead of 122 NH90 transport helicopters for $4.27 billion. • The Navy will also receive 18 MH90 (new designation) Sea Lions with special equipment for $1.56 billion.

Industry Asia-Pacific Indo-Russian Aviation Limited (IRAL) Turns 20

IRAL is strategic joint venture company between Indian companies Hindustan Aeronautics Limited (HAL), ICICI Bank Ltd and Russian companies JSC-RAC-

ISSUE 3 • 2015

14-16 April Aircraft Interiors Expo Hamburg Messe, Germany www.aircraftinteriorsexpo.com 14–16 April ABACE 2015 Shanghai Hawker Pacific Business Aviation Service Centre, Shanghai, China www.abace.aero/2015 21–26 April SUN ’n FUN International Fly-In & Expo Lakeland Linder Regional Airport, Lakeland, Florida, USA www.sun-n-fun.org 13–14 May MilSatCom Asia-Pacific Grand Copthorne Waterfront Hotel, Singapore www.smi-online.co.uk/defence/asia/ conference/milsatcom-asia

29–31 May AeroExpo UK 2015 and Heli UK Expo 2015 Sywell Aerodrome, UK www.aeroexpo.co.uk www.heliukexpo.com MiG, GRPZ Ryazan and Aviazapchast PLC. It was set up in 1994 for providing a comprehensive range of products and services for the repair, overhaul and modernisation of fighter aircraft, transport aircraft and helicopters of Russian (former Soviet Union) origin. IRAL has been mandated with the task of getting the transfer of technology of ‘36 critical items’ identified to be causing frequent concerns to Indian Air Force’s frontline fighter Sukhoi Su-30MKI and manufacture them in Nasik in India.

IndiGo Continues to Expand Domestic Network

IndiGo, India’s largest and fastest growing airline, is enhancing its customer experience in the domestic market with the launch of eight new flights connecting Bengaluru to Delhi, Jaipur and Visakhapatnam and also Delhi–Hyderabad route. Effective February 23, 2015, IndiGo launched its 10th daily non-stop

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News Digest appointments

MITSUBISHI AIRCRAFT CORPORATION

Mitsubishi Aircraft Corporation has announced the following appointments effective from April 1, 2015: • Hiromichi Morimoto as President (R). • Yukinori Horiguchi as Senior Executive Vice President (R), Head of Sales & Marketing Division. • Nobuo Kishi as Senior Executive Vice President. • Masao Yamagami as Executive Vice President, Chairman, Mitsubishi Aircraft Corporation America, Inc. • Hitoshi Iwasa as Senior Vice President, Head of Corporate Administration Division. • Naoki Futatsudera as Senior Vice President, Head of Engineering Division. • Kanji Ito as Senior Vice President, Deputy Head of Sales and Marketing Division.

MBDA

With effect from April 1, 2015, MBDA has appointed Dave Armstrong MBE to the role of MBDA UK Managing Director and Executive Group Director Technical. MBDA has also named Jérôme Dufour as Director of Communications with effect from March 5, 2015.

FLIR SYSTEMS

FLIR Systems has announced the appointment of Shane Harrison as Senior Vice President, Corporate Development and Strategy, effective immediately.

flight between Bengaluru and Delhi and second daily non-stop flight connecting Bengaluru to Jaipur. Additionally, the new schedule will also see the introduction of the airline’s first daily non-stop flight between Bengaluru and Visakhapatnam. The airline will also operate its eighth daily non-stop flight between Delhi and Hyderabad. Speaking on the addition of the new schedule, Aditya Ghosh, President of IndiGo, said, “Having flown over 88 million passengers, IndiGo has achieved immense support and encouragement

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SAFRAN

With effect from February 23, 2015, Bernard Delpit has been appointed Chief Financial Officer, Safran.

QuickRoundUp

COMLUX AMERICA

Comlux America, the Completion and Services centre of the Comlux Group based in Indianapolis, has appointed Scott Meyer as the new CEO of the company.

Northrop Grumman

Northrop Grumman Systems Corp, California, has been awarded a $63,700,156 advance acquisition contract for the procurement of long-lead components, material, parts and associated efforts required to maintain the MQ-4C Triton Unmanned Aircraft System planned production schedule. Northrop Grumman Systems Corp, Aerospace Systems Florida, has been awarded a $14,83,35,501 modification to a previously awarded fixed-price-incentive (firm target) E-2D Advanced Hawkeye multi-year contract for the procurement of one E-2D Full Rate Production Advanced Hawkeye aircraft. Work is expected to be completed in July 2018.

NORTHROP GRUMMAN CORPORATION

On February 19, 2015, Northrop Grumman Corporation announced the election of James S. Turley, former Chairman and Chief Executive Officer of Ernst & Young, to its Board of Directors. Northrop Grumman has also appointed Steve Hogan as Vice President, Global Sustainment and John Parker as Vice President and General Manager, Integrated Logistics and Modernization (ILM) division for the company’s Technical Services sector, effective March 7, 2015.

Piaggio Aerospace

The Italian Air Force will be the launch customer of the P.1HH HammerHead unmanned aerial system (UAS), a state-of-the-art multi-purpose system, designed and developed by Piaggio Aerospace. Piaggio Aerospace will deliver three UAS systems – six air vehicles and three ground control stations – complete with intelligence, surveillance and reconnaissance configuration, to the Italian Air Force in early 2016.

LOCKHEED MARTIN CORPORATION

Lockheed Martin names Rod Makoske Senior Vice President, Corporate Engineering, Technology and Operations. The company has also appointed Keoki Jackson as Vice President and Chief Technology Officer.

Rostec

The head of Rostec stated that Russian arms exporting firm Rosoboronexport, owned by state conglomerate Rostec, has sold more than $13 billion worth of military products during 2014.

GULFSTREAM AEROSPACE

Sikorsky

Gulfstream Aerospace Corp has appointed Nicolas Robinson as Director of Product Support Sales for Asia-Pacific.

Sikorsky Aircraft Corp, Connecticut, has been awarded a maximum $16,34,30,987 firm-fixed-price contract for numerous aircraft platform spare supply parts. This contract was a sole-source acquisition and is a five-year base contract.

from across the network, and continues to show steady growth in the market.

A delegation of defence ministry officials in the US signed a contract, finalising the purchase of 14 Joint Strike Fighter F-35A fighters, the second such order signed by Israel to date. The deal approved last November by the Ministerial Committee, is valued at $2.82 billion.

Europe Norway and Australia to Cooperate on JSM development

The Norwegian Ministry of Defence and the Australian Department of Defence have agreed to cooperate on the development of the Joint Strike Missile (JSM). The agreement seeks to support the introduction of an advanced maritime strike weapon on the F-35 in the early 2020s time frame. •

UTC

United Technologies Corp (Pratt & Whitney), Connecticut, has been awarded a $407 million indefinite-delivery/ indefinite-quantity contract for engine component improvement programme. Work is expected to be complete by December 31, 2021, and involves foreign military sales.

ISSUE 3 • 2015

Last word

Illustration: Anoop Kamath

Make in India for Defence – No Easy Task! The ‘Make in India’ campaign launched by the NDA Govern- require huge investments in infrastructure as well as in training ment in the recent past and driven personally by Prime Minister and retention of specialised manpower. Besides, the facility must Narendra Modi has undoubtedly elevated the level of optimism deliver impeccable quality assurance failing which the product will across all segments of the industry both in the public and private not be acceptable rendering the heavy investment futile. Also, as sector. While in the years gone by, India raced ahead of China in the military hardware in the inventory of the Indian armed forces the regime of information technology, she lagged far behind in being limited in size, the volume of business for the Indian entrethe manufacturing sector. The Chinese manufacturers have pene- preneur will consequently be low. This factor will militate seritrated markets all over the world including in the US and Canada. ously against the principle of economy of scale, a prerequisite for In India even the miniature statues of Hindu gods and goddesses investment in any new venture. As the nation procures over 60 that flood the street markets during the festival season, are made per cent of military hardware from abroad, Indian entrepreneurs in China. Even the caps and carry bags distributed by some of the will undertake manufacture of products for the original equipment global aerospace firms as souvenirs to visitors at Aero India Inter- manufacturers (OEM) in all probability, for only the Indian market. national Airshow held at Yelahanka near Bengaluru in February For the Indian entrepreneurs to access the global market, they will need explicit support of the OEM which neither the government 2015, were made in China! What can be more ironic! The ‘Make in India’ campaign definitely has the potential to nor the Indian entrepreneur can ensure on their own. Unless this open up opportunities for Indian entrepreneurs to foray into the precondition is made an integral part of the contract with foreign domain of manufacturing not only for the domestic market but for vendors, prospects of Indian entrepreneurs exploiting the global the export market as well. Indian entrepreneurs will now have the market will remain clouded in uncertainty. Another factor that is bound to impede the ‘Make in India’ opportunity to not only compete with but even overtake China in the field of manufacturing. Coincidentally, this opportunity pres- campaign is the cap on foreign direct investment (FDI) that is set ents itself to the entrepreneurs in the manufacturing sector at a at 49 per cent. Unless the limit of FDI is raised to beyond 49 per cent, investors from abroad are unlikely to be enthused as the time when the Chinese economy is reported to be slowing down. The ‘Make in India’ campaign drew enthusiastic response from existing limit will not give them the privilege to exercise control on not only the Indian industry but from overseas investors eyeing their investments especially in high technology areas. But perhaps the most formidable impediment to the opportunities for manufacturing in success of the ‘Make in India’ campaign India in the aerospace and defence secis the crippling interference by the regtor. While there is reason for the Indian ulatory hurdles that impede decisionindustry to rejoice at this unique oppormaking at the level of both the political tunity that has come their way, the road leadership and the bureaucracy. The ahead for the Indian aerospace and last tenure of the UPA Government is defence industry in the private secreplete with examples of mindless vactor in the ‘Make in India’ journey, may illation in decision-making that resulted not offer a smooth and trouble free in near total paralysis in the system. ride. While the Indian manufacturer Unless the government of the day of consumer or common user goods carries out a comprehensive review can exploit the demand of the civilian the whole system of defence procuredomestic market generated by a popument, the nuances of manufacturing lation of 1.2 billion and would not necfor the defence sector and restructures essarily have to depend on the demand regulatory provisions to make it sigfrom overseas, the situation with regard nificantly easier for the foreign comto the defence and aerospace industry is panies in the aerospace and defence somewhat different. By its very nature, sector to carry out business in India, the defence and aerospace industry in modernisation of the Indian armed India is restrictive in many ways. The The ‘Make in India’ campaign drew forces through indigenisation may demand for products that would be enthusiastic response from not only continue to remain a distant dream, placed on the Indian aerospace and the lucrative potential of the ‘Make in the Indian industry but from overseas defence industry to begin with will be India’ campaign notwithstanding. SP inherently limited by the size of inveninvestors eyeing opportunities tory of the Indian armed forces. for manufacturing in India in the Establishment of a facility in India —By Air Marshal aerospace and defence sector to produce military hardware will B.K. Pandey (Retd)

ISSUE 3 • 2015

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Prepare for departures from the norm. With our E-Jets E2 program well under way, it is time for a look inside, where well-conceived design for a new generation allows passengers to enjoy their own personal territory. This “space within a space” is achieved through clear delineation, advanced ergonomic engineering, and meticulous attention to detail throughout the sumptuous cabin. All to ensure each seat – and every crew station – is a great destination in itself. Leaving normal expectations far behind.