SP's AirBuz October-November 2014

ADDRESSING ENVIRONMENTAL CONCERNS p 13

october-novEMBER 2014

`100.00 (India-based Buyer Only) Volume 7  • issue 5 www.spsairbuz.com

...we are acting we are doing

AMBITIOUS AIR COSTA

AIRBUZ p 16

p 27

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

RNI NUMBER: DELENG/2008/24198

C-130 FORAYS INTO civil CARGO

An SP Guide Publication

table of contents

civil aviation / freighter

Lockheed Martin will be rolling out in 2017 the LM-100J, the civil freighter version of the C-130J military workhorse.

Cover: The LM-100J is the civilcertified version of Lockheed Martin’s proven C-130J Super Hercules and is an updated version of the L-100 (or L-382) cargo aircraft. Cover Image: Lockheed Martin

ADDRESSING ENVIRONMENTAL CONCERNS P 13

OCTOBER-NOVEMBER 2014

`100.00 (INDIA-BASED BUYER ONLY) VOLUME 7 • ISSUE 5 WWW.SPSAIRBUZ.COM

...WE ARE ACTING WE ARE DOING

AMBITIOUS AIR COSTA

AIRBUZ P 16

P 27

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

C-130 FORAYS INTO CIVIL CARGO

RNI NUMBER: DELENG/2008/24198

P18  LOCKHEED MARTIN FORAYS INTO COMMERCIAL AVIATION

AN SP GUIDE PUBLICATION

SP's Airbuz Cover 05-2014.indd 1

15/11/14 6:06 PM

Factfile / Embraer  P10  WAY AHEAD OF COMPETITION

Embraer has notched up over 1,000 deliveries of E-Jets since inception and is going strong, dominating the market for regional jets

ENGINES / ENVIRONMENT  P13  ADDRESSING ENVIRONMENTAL CONCERNS

Increased environmental regulations and ever rising fuel costs are making jet engine manufacturers develop products that reduce emissions and noise pollution

Messages on 50 years of SP’s P3 – from Prime Minister’s office P4 – from CHief Minister of Gujarat P16 Technology / CFM WE ARE NOT TALKING WE ARE ACTING WE ARE DOiNG P20 CIVIL aviation / corporate Safran announces R&D collaborations with Indian Institutions P27 regional aviation / air costa AMBITIOUS AIR COSTA P29 show report / NBAA 2014 Runaway Success

Civil / Regional Aviation  P22  REGIONAL AIRCRAFT FOR INDIA

The next round of growth in the Indian airline industry will be triggered by expansion of regional aviation into remote and not easily accessible regions

Regional Aviation / REGULATORY   P24  ROUTE DISPERSAL GUIDELINES

What is really required is a thorough and professional review of the Route Dispersal Guidelines

departments P2 A word from Editor P6 NEWS BRIEFS P32 FInally

SP’S AIRBUZ • ISSUE 5 • 2014 • 1

A word from

editor

Publisher And Editor-in-Chief

Jayant Baranwal Editor

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

R. Chandrakanth (Bengaluru) Contributors

Group Captain A.K. Sachdev (Retd), Group Captain Joseph Noronha (Retd), S.R. Swarup, Vasuki Prasad, Shriniwas Mishra Chairman & Managing Director

Jayant Baranwal Planning & Business Development

Executive Vice President: Rohit Goel admin & coordination

Bharti Sharma Creative Director

Anoop Kamath Graphic DesignerS

Vimlesh Kumar Yadav Sonu Singh Bisht Research Asst/Graphics: Survi Massey SALES & MARKETING

Director Sales & Marketing: Neetu Dhulia General Manager Sales: Rajeev Chugh SP’s websites

Sr Web Developer: Shailendra Prakash Ashish Web Developer: Ugrashen Vishwakarma © SP Guide Publications, 2014 Subscription/ Circulation

Annual Inland: `600 • Foreign: US$180 E-mail: subscribe@spguidepublications.com subscribe@spsairbuz.com LETTER TO EDITOR

editor@spsairbuz.com For Advertising details contact

neetu@spguidepublications.com rajeev.chugh@spguidepublications.com SP GUIDE PUBLICATIONS PVT LTD

A-133 Arjun Nagar (Opposite Defence Colony), New Delhi 110003, India. Tel: +91 (11) 24644693, 24644763, 24620130 Fax: +91 (11) 24647093 E-mail: info@spguidepublications.com BENGALURU, INDIA

204, Jal Vayu Vihar, Kalyan Nagar Bengaluru 560043, India. Tel: +91 (80) 23682204

T

he civil aviation industry in India appears to be in a state of transition. A decade after the low-cost carrier concept was introduced, most of India’s airlines continue to flounder financially, a state that is largely attributable to a business environment that continues to be hostile. However, despite the financial difficulties, three new carriers have been bold enough to enter the fray. Two of these, i.e. Vijayawada-based Air Costa and AirAsia India are already operational and the third, Vistara, a joint venture between Tata Sons and Singapore Airlines, has just missed the target date for launch that was scheduled for October this year. This Delhi-based full service carrier has already acquired two brand new Airbus A320 airliners. However, as per Phee Teik Yeoh, the CEO of Vistara, “The final clearance is taking a little longer time than we anticipated. There have been some new developments with respect to DGCA guidelines and we are working to swiftly comply with these.” Not only is Vistara battling regulatory hurdles, it has also had to face opposition from the association of existing Indian carriers as also from a political personality. Air Costa that was launched as a regional airline is now moving forward to expand and upgrade its status to that of a national carrier. AirAsia India, a joint venture between Tata Sons and a successful Malaysian low-cost carrier, is reportedly doing well and is embarked on further expansion of operations. The three new entrants are expected to raise the quality of air travel to a new level. This issue carries a report by R. Chandrakanth on Air Costa wherein the management of the airline relate their experience so far as well as divulge their plans for the future. The new government is embarked on a major effort to expand regional connectivity through the development of airfield infrastructure. The consequent boost to regional aviation will undoubtedly open up new opportunities for Embraer, the Brazilian aerospace major, that has on offer a range of E2 regional jets ideally suited for this segment of the industry. Even though the civil aviation industry contributes only two per cent of carbon dioxide emissions from fossil fuel use, regulatory paradigms and the escalating price of aviation turbine fuel, are making it an imperative for manufacturers of jet engines to develop products that further reduce emissions and noise pollution. As per Jean-Paul Ebanga, President and CEO, CFM International, the CFM56 defines the industry standard in terms of the lowest emissions level of an engine in the single-aisle market. The Indian airline industry continues to be affected by major issues like Route Dispersal Guidelines. A.K. Sachdev analyses how the existing Route Dispersal Guidelines impinge on profitability of the Indian airline industry. All these apart from the regular features in this issue. Welcome aboard and happy landings!

www.spguidepublications.com Owned, published and printed by Jayant Baranwal, printed at Kala Jyothi Process Pvt Ltd and Published at A-133, Arjun Nagar (Opposite Defence Colony), New Delhi 110003, India. All rights reserved. Member of:

App l i e d f o r 2 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

B.K. Pandey Editor

Factfile Embraer Message from Prime Minister’s Office

Message on 50 Years of SP Guide Publications

Narendra Modi

T

Prime Minister’s Office India

he Hon’ble Prime Minister is happy to learn that SP Guide Publications is celebrating Golden Jubilee of its publication.

In a country like India with limited support from the industry and market, initiating 50 years ago publishing magazines relating to Army, Navy and Aviation sectors without any interruption is a commendable job on the part of SP Guide Publications. By this, SP Guide Publications has established the fact that continuing quality work in any field would result in success. On this occasion, the Prime Minister conveys best wishes to publishers, associates and the readers.

SP’S AIRBUZ • ISSUE 5 • 2014 • 3

Factfile Embraer Message from Chief Minister of Gujarat

Message on 50 Years of SP Guide Publications

Anandiben Patel

I

Chief Minister Gujarat State

t is a matter of pride that “SP Guide Publications” is working since 50 years in the field of aerospace and defence sectors, serving and highlighting the people of the same sector.

I extend my best wishes to the associates and readers of the publications and hope that publication house will keep up the good work and will encourage more and more youth to join our forces and serve our mother country India.

4 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

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

NewsBriefs

(  Airline News Tenure of CMD Air India Extended

As per an order issued by the Department of Personnel and Training, the Appointments Committee of the Cabinet has approved the extension of tenure of Air India’s Chairman and Managing Director, Rohit Nandan “till August 21, 2015, or till the appointment of a regular incumbent, whichever is earlier”. This move should benefit the national carrier. For Nandan, who oversaw the airline’s entry into Star Alliance, the world’s largest grouping of airlines, this is the second extension in three months. Earlier the government wanted another face the helm of affairs prompting the alliance to write to the government requesting Nandan’s continuity at the helm of Air India’s affairs. Nandan was also the target of the airline’s employees’ unions, many of whom are politically affiliated to the Shiv Sena. This lost some steam as the alliance between the ruling BJP and the Sena broke down ahead of the elections of Maharashtra. Air India will do well with stability and continuity in its leadership.

of understanding (MoU) with Airbus SAS, the European aircraft manufacturer, for a firm order for 250 Airbus A320neo (new engine option) narrow body single-aisle jetliners. This MoU will be the largest single order in the history of the European aerospace major Airbus in terms of number of aircraft. Earlier on, IndiGo had placed an order for 100 Airbus A320 classic and another order for 150 A320neo and 30 A320 classic jetliners. The two orders taken together was the largest at that time. Although not confirmed by the airline, it is understood that IndiGo has converted some of its A320neo orders to A321neos.The engine selection is not expected to be made any time soon. IndiGo uses International Aero Engines V2500 on its existing A320 classic fleet and has opted to go for the Pratt & Whitney PurePower PW1100G-JM Geared Turbofan (GTF) engine for the existing order for 150 neo jetliners. Soon after IndiGo placed its 150 A320neo order at the Paris Air Show 2011, Malaysian low-cost carrier AirAsia topped it there and then with an order for 200 Airbus A320neo.

Image Makeover for Air India

Vistara, the Tata-SIA joint venture airline, has received its first Airbus A320 aircraft as the airline inched closer towards to receiving the flying permit. Though there is a delay by a fortnight in taking delivery of the flight, the fullservice airline, in which the Tatas have majority stake, expects to hit the skies in late October this year. The delay has resulted in the a delay of the launch of Vistara by a couple of weeks and now it has to undergo mandatory flight tests and other checks before DGCA grants the airworthiness certificate and the flying licence. The landing of the A320 at the Indira Gandhi International Airport in New Delhi also came on a day when low-cost carrier AirAsia India announced that Mumbai will be its next destination in addition to its six existing destinations. Though they may not be in direct competition as the operating profile of both the airlines are different, a crowded sky would mean that Vistara would have to plan its schedules properly as its main destinations are likely to be metros and the large cities. Said Phee Teik Yeoh, CEO of Vistara, “We are very excited to receive the delivery of our first aircraft.”

Following entry into Star Alliance, the loss-making national carrier Air India (AI) is embarked on an exercise of image makeover. The airline is buying larger wine glasses, refurbishing aircraft interiors and redesigning dress for cabin crew as part of the image makeover. While the management is taking these steps to upgrade the look of the airline following its Star Alliance membership, many insiders feel that some of the additional expenditure could be curtailed. Although some in the airline have expressed reservations about the wisdom of the move, the management has justified the newly adopted measures as part of the effort to improve services as the carrier has joined Star Alliance. AI has gone in for new fittings and boilers for galleys although most of the aircraft in its fleet are still new. Besides, upholstery of seats is being changed despite having been recently refurbished so that the Star Alliance logo can be incorporated. As far as the exteriors of the planes, all 135 narrow- and wide-bodied planes are being repainted with the logos of Star Alliance. Recently, two AI unions sought a probe by the Central Bureau of Investigation into the state-run carrier’s losses and bring those responsible to book.

IndiGo to Buy 250 Airbus A320neo Airliners

Jet Airways Expands International Services

Vistara Receives the First Airbus A320 Aircraft

India’s largest domestic low-cost carrier IndiGo Airlines has signed a memorandum 6 • SP’S AIRBUZ • ISSUE 5 • 2014

G

In its schedule for the coming winter, Jet Airways has plans to expand international

www.spsairbuz.com

services, with new flights to Dubai, Doha and Abu Dhabi. The airline feels increasing foreign operations will boost foreign exchange earnings and offset rupee’s depreciation. New services have been planned to Dubai from Kochi and Mumbai; Doha from Mumbai, Kozhikode and Thiruvanthapuram and Abu Dhabi from Ahmedabad, Lucknow and Goa. The airline has already announced new flights to Ho Chi Minh City in Vietnam via Bangkok from November, as well as additional flights on the Mumbai-Bangkok and Mumbai-Colombo routes. International operations account for 56 per cent of Jet’s overall revenue. The airline plans to increase this to about 60 per cent. It is scaling down domestic services, adding flights on short international routes and exploring new flights to Yangon and Seychelles. It is also considering resuming services to Kuala Lumpur. For 2013-14, Jet Airways reported a record loss of `4,129 crore. It is now working on a three-year business plan to turn profitable by 2017. The plan includes financial restructuring, a new route-and-network plan and enhancing products. The airline’s expansion into the US has been hit by the downgrade of India’s safety rating.

(  Airline Finance Reduction in Price of Aviation Turbine Fuel

While global crude oil price fell 21 per cent since June 2014, price of domestic aviation turbine fuel in India fell by only 0.8 per cent between July and September this year and by another three per cent in effective from October this year. This has come as a matter of some relief to the Indian carriers. As the international price of crude is showing a downward trend, domestic carriers expect ATF prices to go down further, something that will boost their earnings from the quarter ending December 2014. Amber Dubey, partner and India head (aerospace and defence), KPMG, said, “The three per cent reduction in ATF price is welcome, but not a great relief to the beleaguered airline sector. In India, ATF prices are still 45-50 per cent higher than global prices, thanks to excessive customs, excise and state taxes. Unless the price is brought closer to global levels, we will not see aviation reach the common Indian. Low air traffic and cash-strapped airlines are not good news for trade, tourism and the Indian economy at large.” According to an HSBC Global Research report, cost pressures on do-

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

NewsBriefs

Events Calendar Dubai Helishow 2014

4–6 November Grand Stand, Meydan Hotel, Meydan Racecourse, Dubai, UAE www.dubaihelishow.com

MRO Asia 2014

4–6 November SingEx, Singapore http://mroasia.aviationweek.com

AIRSHOW CHINA 2014

11–16 November Zuhai, Guangdong, China www.airshow.com.cn/en

MIDDLE EAST BUSINESS AVIATION 8–10 December Dubai World Central, Dubai, UAE www.meba.aero

mestic airlines were easing, albeit unevenly. The report said only a few states had reduced taxes on jet fuel, adding for airlines to see a meaningful reduction in fuel costs, this had to be done on a more widespread basis.

Air India Incurs Loss on International Flights

Air India lost money on 57 of its 59 international routes in the last fiscal year which ended March 31, 2014. The airline lost a whopping `4,273.35 crore operating these international flights. Over half of the 59 international flights, 32 or 55 per cent, did not even earn their direct out-of-pocket cash operating costs. Tantamount to taking taxpayer bailout money and setting it on fire, the airline failed to generate enough revenue from these flights to cover even its basic cash operating expenses by `575 crore, forget the payback on the massive `40,000-crore debt the airline is sitting on or the other overheads such as management expenses, ground and station staff expenses etc. In a direct contrast to India’s leading private airline Jet Airways, whose international division earns profit which is lost by domestic operations, Air India’s international operations contribute to over 80 per cent of its total annual loses.

(  Infrastructure First Five No-Frills Airports

As per the Minister of Civil Aviation Ashok Gajapathi Raju, the first five no-frills airports

would come up in four states and the work would begin in the next six months. The airports, which have been shortlisted from 50 cities and towns in remote areas and various unconnected regions across the country, would come up at Tezu (Arunachal Pradesh), Kishangarh (Rajasthan), Jharsuguda (Odisha), Hubli and Belgaum (Karnataka). Airports Authority of India (AAI) has developed a no-frills model airport which will provide essential services needed to operationalise the airports without in any way compromising safety and security. This will result in low cost of operation and make it viable for the airlines to run their services. Raju said a draft policy on remote and regional connectivity had also been evolved, which would aim at granting various concessions and incentives to airlines to fly to such areas. “It is proposed to create a framework which enables synergy between scheduled airlines, regional carriers and non-scheduled airlines for better penetration and connectivity,” he said. The minister said a conscious effort was being made to develop routes to un-served and under-served airports and the draft policy was being discussed with all stakeholders, including airlines and airport operators.

(  Business Aviation Dassault Falcon-7X at South African Air Show

Dassault Aviation presented its large cabin, long range Falcon 7X at the Africa Aerospace & Defence Expo, held in Gauteng, South Africa, from September 17 to 21, 2014. Among their many advantages, Falcons can access challenging airports where competitors are unable to operate or can operate only with limited range. For example, all in-production Falcons are approved for operation at London City Airport, one of the world’s most restricted airports. Falcons are also exceptionally sturdy, a strong selling point in Africa, where the average age of business aircraft is higher than elsewhere. These features have enabled Dassault to capture 33 per cent share of the African market and a quarter of the large cabin segment. The newly introduced very large cabin Falcon 5X and ultra long-range Falcon 8X are expected to further boost African demand. The twin-engine 5X will feature the highest and widest cabin in business aviation. The 6,450 nm 8X, an extended version of the 7X featuring an unparalleled selection of cabin configura-

tions will enable customers to fly non-stop from Cape Town to London or Johannesburg to Moscow while benefiting from the outstanding operating economy and flexibility offered by the 7X. New Falcon 5X and 8X also expected to drive future growth in Africa.

Falcon 7X Operations at World’s Highest Airport

The long-range Falcon 7X will soon become the first business jet certified to operate at Daocheng Yading, the world’s highest commercial airport. The certification campaign at Daocheng, situated in China’s Sichuan province at an altitude of 14,470 ft, was initiated at the request of Chinese customers and is intended to meet the demand in Western China for business jets capable of operating at the many small high-altitude airports in the region. The campaign, which began on August 25 and concluded on September 7, enjoyed strong support from the European and Chinese civil aviation authorities EASA and CAAC. In recent years, China has emerged as one of the biggest markets for business aviation aircraft and the Falcon line, led by the 7X, has seized a commanding share in this market. Nearly 30 Falcon 7Xs are currently flying in the country, making China the second largest market for the long-range trijet, after the United States. And with the recently introduced Falcon 5X very large-body twin and ultra long-range Falcon 8X, the Falcon brand is expected to lead the Chinese market for many years to come.

(  Technology Next-Gen In-Flight Connectivity

Honeywell and Thales will work together to integrate Honeywell JetWave hardware with Thales cabin network solutions for Airbus A350XWB and other commercial aircraft. The combined offering will give commercial airline operators and their passengers the same connectivity experience in-flight as SP’S AIRBUZ • ISSUE 5 • 2014 • 7

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

NewsBriefs

they would have at home or work — enabling real-time TV channel viewing, live chatting, video streaming and more. The global high-speed connectivity offering, targeting both passenger aircraft and business jets, will provide data rates to the aircraft of up to 50 Mbps and will be available with Thales cabin network solutions in 2015. In addition, Thales will offer Honeywell’s JetWave hardware for new and existing Airbus aircraft as a selectable option. Honeywell and Thales are building on their collective 20-year history as leaders in the airborne satellite communications market to address the new challenges that have been set by the demanding connectivity market: coverage, consistent high-bandwidth connection and commercially viable pricing. Over this period, Honeywell and Thales have combined to successfully develop, integrate and distribute commercial aviation satellite communications equipment and services to the world’s leading airlines. Honeywell is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers and performance materials.

Honeywell’s Air Traffic Management Technologies

Honeywell Aerospace showcased its innovative air traffic management (ATM) technologies at ATC Global Conference 2014 in September at the China National Convention Center, Beijing. Honeywell showcased the company’s ATM solutions including SmartPath Ground-based Augmentation System, IntuVue 3-D Weather Radar, SmartRunway and SmartLanding. The ATC Global Conference, the world’s leading conference in the air traffic control sector, was held for the first time in Asia-Pacific reflecting the growing importance of the region in the aviation industry as a key transportation hub, both regionally and internationally. Honeywell has long recognised the critical role that the region plays in terms of growth opportunities. The steadily increasing demand for air travel makes air traffic modernisation a critical pri8 • SP’S AIRBUZ • ISSUE 5 • 2014

G

ority for airports and airlines in Asia-Pacific as they cope with the surge of air travellers while ensuring flight and runway safety and minimising air traffic congestion. With over 100 years of experience in the aviation industry, Honeywell is able to apply its expertise to help define and support China’s ATM strategy through partnerships with the Civil Aviation Administration of China and the Chinese aviation industry. Honeywell’s technology and solutions are currently installed in more than 500 airports worldwide and ATM technologies such as SmartPath GBAS have already been installed in more than 15 airports across several regions.

(  Regulatory Affairs

appointments Ministry of Civil Aviation

Dr Mahesh Sharma assumed the charge as Minister of State for Civil Aviation. A Member of Parliament (Lok Sabha) from Gautam Buddha Nagar constituency, Uttar Pradesh, Dr Sharma is also a member of Standing Committee on Health & Family Welfare and Consultative Committee for the Ministry of Urban Development. He is the National Convener of Medical Cell (BJP) and Chairman of the Indian Medical Association (IMA) Standing Committee for Public Relations.

JET AVIATION DGCA Ban on Cat-IIIB Non-Compliant Aircraft

Passengers flying to smaller cities such as Bhuj, Dehradun or Shimla from Delhi’s Indira Gandhi International Airport are unlikely to get any air connectivity this winter as the Directorate General of Civil Aviation (DGCA) will ban operations by low-capacity turboprop CAT–IIIB non-compliant Bombardier Q-400s, ATRs and CRJs out of Delhi airport during the fog season. This measure being taken is in line with DGCA’s objective to make Delhi airport “zero diversionary” by December. A representative of DGCA said: “We will temporarily stop operations of Q-400s, CRJs and ATRs to Delhi airport from mid-December, as these aircraft are not CAT-IIIB-compliant and will only add to the problems during the fog season.” Aircraft fitted with devices matching CAT- IIIB Instrument Landing Systems can operate in low visibility conditions during fog, minimising diversions and delays. The regulator had last winter warned the airlines that they would be stopped from operating in and out of Delhi during the fog season if they did not deploy CAT-III trained crew to operate flights in and out of the national capital in case CAT-III weather predictions were made by the Met department.

Regaining Air Safety Ranking by DGCA

The US Federal Aviation Administration (FAA) has said it will work with the the Directorate General of Civil Aviation (DGCA) here to help India regain the Category-I safety ranking. The FAA has downgraded the country’s ranking from I to II, following an audit, which would check expansion of Indian carriers in the US. “US and Indian aviation of-

www.spsairbuz.com

Jet Aviation Singapore has appointed of Herb Chahal as the company’s new Sales Director for Asia, effective October 1, 2014. The Company has appointed John Riggir as new Vice President and General Manager of Jet Aviation Singapore

GULFSTREAM AEROSPACE

Gulfstream Aerospace Corporation has made the following appointments: •  Grant Kennedy as Sales Director, North American Sales, East Division. •  Matthew Sandidge as Regional Vice President of Sales for Russia and the Commonwealth of Independent States. •  Brian Jones Regional Vice President of Sales for Northern Europe. •  Cindy Halsey as Vice President, Completion Planning and Design. •  Jeff Kreide Vice President, FinalPhase Engineering. •  Jim Tait, Vice President, Sales Operations and Analysis. •  John R “Bob” Ranck as the designated successor to Buddy Sams, Senior Vice President, Government Programmes and Sales. •  Leda Chong, Senior Vice President, Asia Pacific. ficials have developed an important working relationship as our countries work to meet the challenges of ensuring international aviation safety,” said FAA Administrator Michael Huerta in a statement. One of the deficiencies revealed in the FAA audit was the lack of full-time flight operation inspectors in DGCA. Till now, the Union Government was taking on deputation airline pilots as flight operation inspectors (FOIs), raising a possibility of conflict of interest. The government

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

NewsBriefs

approved creation of 75 posts of FOIs. However, filling all the posts could prove an uphill task. Senior pilots of the ranks of examiners are appointed as FOIs and their mandate involves inspection, surveillance and carrying out proficiency checks of other pilots.

Violation of Air Safety Norms

The revelation by the Directorate General of Civil Aviation (DGCA) that 135 pilots of Jet Airways have been flying without its mandatory approvals is shocking. It undermines the safety of passengers who mistakenly believed that all safety norms were in place. Even more shocking is the regulator’s response to the large-scale violation. The pilots were allowed to fly for months after their last pilot proficiency check expired and even now, the regulator has merely issued show-cause notices to most of them, instead of suspending them from flying till they’re approved. A show-cause notice has been served on the airline’s Chief of Operations; the airline has been directed to remove its Chief of Training; but only four pilots have been de-rostered. A decision on de-rostering the remaining errant pilots was delayed for the ostensible reason that such a move could upset the flying schedule of the airline on many routes. This reflects poorly not just on India’s second-largest airline, but also on the DGCA’s supervision. This glaring violation of norms did not come to light as a result of DGCA’s routine checks or supervision. An inexplicably careless lapse by the Jet Airways pilots led to one of its planes without ATC clearance, suddenly losing height of about 5,000 feet early last month while flying over the Turkish airspace.

Revision of Licensing Norms by DGCA

The Directorate General of Civil Aviation (DGCA) has revised airline licensing norms, restricting foreign carriers from having management control in domestic airlines. The amended rules also allow airlines to carry out maintenance and repairs and training of pilots and engineers at facilities belonging to other airlines. This change will benefit both Tata Singapore Airlines and AirAsia, which could use their bases in Singapore and Malaysia for training and engineering functions. Earlier rules stipulated that the Chairman and two-third of an airline’s board members must necessarily be Indian citizens and that effective control and substantial ownership is vested with Indians. The revised rules state that domestic airlines shall not enter into an agreement with a foreign airline or a foreign investor, which may give the latter the “right to control the

management’’ of the domestic airline. The recent controversy over the issue of Etihad’s control over Jet Airways seems to have prompted the DGCA to revise its rule. The other modifications in the rules include the need for prior security clearance of the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of an airline if the post is held by a foreign national. Another clause says: “All foreign nationals likely to be associated as a result of investment by foreign airlines shall be cleared from a security viewpoint before deployment.”

(  Industry News Republic Airways Holdings Orders Embraer E-175 Jets

Embraer and Republic Airways Holdings, the world’s largest operator of E-Jets, announced a contract for the sale and purchase of 50 firm E-175 jets. The value of order is estimated at $2.1 billion. The aircraft will be operated for United Airlines under the United Express brand. Deliveries are scheduled to begin in the third quarter of 2015 and extend until 2017. This contract is in addition to the order Republic placed in January 2013 for 47 firm and 47 option E-175s, 34 of which have already been delivered. In addition to the new order, Republic maintains 32 options for E-175s. This transaction is tied to the transfer of Q-400 turboprop airplanes currently operated by Republic Airlines to UK carrier Flybe. As part of the agreement Flybe and Embraer have agreed to reduce by 20 the outstanding order for 24 E-175s the airline has on order. Therefore, the net increase to Embraer’s order book will be 30 E-175 jets. Republic Airways was one of the first US carriers to fly Embraer E-Jets, operating its first E-170 in 2004. With this new order, the Republic Airways E-Jet fleet will consist of 72 E-170s and 151 E-175s for a total of 223 E-Jets.

Order of Airliners by Air One

India’s Air One Aviation is seeking $2 billion of jets to take on Singapore Airlines’ venture in the country, stoking competition in a market

where carriers lost almost $10 billion in seven years. Air One, among six companies that in the recent past received initial approval to start airlines in India, is looking at Airbus A320s and Boeing 737. Air One plans to provide full-service flights from mid-2015. At list prices, 20 Boeing 737-900 ERs cost $1.98 billion, though airlines typically get discounts. “You can’t start with one plane and wait for another six months to get the next one,” Alok Sharma, Director Air One said adding “The launch will be decided by availability of aircraft in a contiguous manner.” Air One is undeterred by one of the world’s costliest aviation markets and sees growing demand for air travel and reduced capacity as some airlines in India are struggling. Singapore Airlines, partnering with the Tata Group, plans to fly its full- service Indian venture Vistara this year, while AirAsia India began operating a low-cost carrier in June. Sharma, who ran Sahara Airlines before it was sold to Jet Airways in 2007, said his experience in Indian aviation gives him an edge as he charts a path to profit. Air One currently offers charter services.

Contract Between Rockwell Collins and IGIA

The Indira Gandhi International Airport (IGIA), India’s busiest airport in terms of passenger traffic and the largest airport in South Asia, has signed an agreement to extend use of Rockwell Collins’ ARINC passenger processing technology for six years. Signifying the strength of its relationship with Rockwell Collins, IGIA also recently crowned the company “Best IT Service Provider” for the second year in a row. IGIA will also be working with Rockwell Collins to develop cutting-edge solutions to facilitate passenger processing and reduce congestion, such as deploying mobile and portable check-in devices throughout the airport. The contract renewal includes a migration of technology and updates without disrupting existing operations, ensuring a seamless transition for the airport. In addition, consolidating the IT core rooms for both Terminals 1D and 3 into one led to considerable savings and space that could eventually be used for retail. “We created a customised solution for IGIA that accommodates its rapid growth, while continuing to improve passenger experience, enhance competitive advantage and maximise return on investment,” explained Heament John Kurian, Managing Director, Information Management Services Division, Asia Pacific for Rockwell Collins.  SP SP’S AIRBUZ • ISSUE 5 • 2014 • 9

Factfile

Embraer

Embraer E170

WAY AHEAD OF COMPETITION Embraer has notched up over 1,000 deliveries of E-Jets since inception and is going strong, dominating the market for regional jets

by R. Chandrakanth

PHOTOGRAPHs: Embraer

W

hile there is a see-saw competition between the two big airframers – Airbus and Boeing, as regards regional jets, there is a clear leader and that is Brazil’s Embraer. The aircraft manufacturer has given new meaning to regional aviation by offering aircraft which are not only comfortable and efficient but also giving an airline the ‘right’ aircraft to serve regional markets. The Brazilian company this year passed an important milestone of having delivered 1,000 aircraft since inception, further consolidating its position as market leader. Embraer has had 8.2 per cent year-on-year increase of its E-Jets family and to keep that lead, it has reworked its strategy by reducing the family of four to three. The new-look E2 Jets are going to be game-changers. As the company embarks upon these changes, its Canadian rival Bombardier has fair gains with a hike of nearly 7.5 per cent in the CRJ700/900/1000 fleet, notching up sales of about 650 aircraft. Unlike 10 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

Embraer, Bombardier also offers Dash 8 Q-400 turboprop regional aircraft. The other two major regional jet players – Mitsubishi Regional Jet (MRJ) and Sukhoi Superjet 100 International—are new entrants in the market and are slowly gaining foothold. The other key regional player is a turboprop aircraft manufacturer—ATR—that has a short haul market of its own. The fleet of ATR-72 has registered 14.6 per cent growth to tally 581 aircraft. The fleet of Russian aircraft such as Ilyushin II-76, Tupolev Tu-154 and Yakovlev Yak-40 are witnessing a slow decline as new aircraft are emerging within Russia and elsewhere. Even as these new players, mostly from Asia-Pacific, make their forays, Embraer has established a strong lead. Embraer’s Success Story.  On initiative by the Brazilian Government, the Brazilian aircraft manufacturer came into being on July 29, 1969 as a culmination to the country’s aviation ambition. The General Command for Aviation Technology (CTA – Centro Tecnico Aeroespacial), a unit of the Brazilian Air Force, coordinated all technical and scientific activities related to aerospace. Over the

Factfile

Embraer

Embraer’s Order Book as on September 30, 2014 Aircraft

Firm Orders

Options

Deliveries

Firm Orders

E-Jets E2 Family

210

220

0

210

E-Jets Family

1,326

529

1,060

266

Total

1,536

749

1,060

476

Source: Embraer

years, CTA commissioned several defence projects. In 1965, CTA research wing IPD embarked upon a project known as IPD-6504, a turboprop aircraft, which was later named Bandeirante which flew for the first time in 1968. And in 1969, the government established Embraer to take up commercial production of Bandeirante. Since then, there has been no looking back and its growth metamorphosis has been amazing to say the least. From 500 employees at inception it now has almost 20,000 on its rolls. Embraer’s initial target was to build two Bandeirante aircraft a month and the first of the aircraft were delivered to the Brazilian Air Force in 1973, the year it recorded its first commercial sale to TransBrasil. Buoyed by this success, Embraer explored the export market and by 1990 when Bandeirante ceased production, it had already notched up sales of 500 in about 35 countries. Importantly, this phase put Embraer on the global aviation map. In the 1970s, it developed the Brasilia, a turboprop regional plane with a capacity of 30 to 40 passengers. It was certified in May 1985 and the first aircraft was sold to the US-based Atlantic Southeast Airlines. Brasilia was said to be the fastest and lightest aircraft in the 30to 40-seat capacity category. However, around the same time Embraer ran into financial difficulties, attributed to its government control, lack of business orientation and out of sync with market needs. In the early 1990s, Embraer drastically cut costs and laid-off over 50 per cent of its employees, numbers dropping from nearly 13,000 in 1990 to about 6,100 in 1994. In 1994 fiscal, Embraer posted $250 million in revenue and $330 million in loss. Turnaround.  It was these cascading effects that made the government privatise Embraer in 1994. However, the government retained veto power on sale of shares to foreign investors, employee

relationships and the terms of sale of aircraft to the military. Control over the company was acquired by a syndicate of Brazilian investors, consisting of the Bozano Group and two of Brazil’s largest government-owned pension funds, Previ and Sistel. Each of these investors held 20 per cent of the voting capital of the company. Mauricio Botelho, the former Executive Director of the Bozano Group, became the new President and CEO of Embraer. Though he had no experience in the aviation industry, the Embraer board had confidence in his ability to revive the company. Within two months of taking charge, he unveiled a strategic turnaround plan of concentrating in the first two years to improving productivity and regaining solvency. For this he put in place a strategy of job lay-offs and wage cuts, though it was difficult to push through these reforms with a belligerent union. He however convinced them of his plan and they bought it. Focus on Regional Jets.  Embraer was running behind schedule on many projects and new product development initiatives were in shambles. Consequently, Embraer had few products that showed commercial potential. An exception was the ERJ145 project which had been launched in 1989. The ERJ-145 was a 50-seat regional passenger jet which was being designed to compete against Bombardier’s comparable CRJ-200. Botelho cancelled all other projects and staked Embraer’s future on the ERJ-145, a highly risky move for Embraer as Bombardier clearly dominated the market for regional jets at that time. Besides, Embraer had little experience in manufacturing jet passenger aircraft. The company had considerable experience in designing and manufacturing turboprop aircraft. Although these were cheaper to build, but were not very popular with passengers and airlines as they were noisy and the ride bumpy. Botelho believed that regional jet planes were a better option for the company. Subsequently, the development of the ERJ-145 was carried out in a very systematic manner. Embraer studied the regional jet market carefully to understand the needs and requirements of airlines that used regional jets. Funds to develop the ERJ-145, however, were not easy to come by. Embraer took a $98 million loan from the Brazilian Government to fund the project, with more money being provided by Embraer’s new owners – The Bonazo Group, Previ and Sistel. In addition to this, Embraer also entered into partnerships and

Embraer E190

SP’S AIRBUZ • ISSUE 5 • 2014 • 11

Factfile

Embraer

Embraer E195

technical alliances with companies such as Parker Hannifin Corporation, Allison Engine Company and Honeywell Space and Aviation Control, who collaborated on producing the parts for the plane. First Flight of the ERJ-145. The ERJ-145 flew for the first in August 1995 and Embraer made the first delivery of the aircraft in December 1996 to Express Jet Airlines,the regional division of US-based Continental Airlines. More orders followed soon and the ERJ-145 went on to become a major commercial success during the second half of the 1990s as the market for regional jets expanded. The success of the ERJ-145 prompted the company to focus on making regional jets to take advantage of the expanding market. In the late 1990s, Embraer added new models to the ERJ-145 family, launching the ERJ-135 and the ERJ-140, which were modified versions of the ERJ-145. By the end of the 1990s, a total of 192 aircraft from the ERJ-145 family were delivered to various commercial airlines. The E-Jet Era. The success of the ERJ-145 demonstrated the potential for regional jets and prompted Embraer to consider manufacturing a full range of regional jets to tap more segments of the market. For a better understanding of the regional jet market, Embraer surveyed more than 60 airlines around the world. The survey indicated that the segment for mid-sized regional jets was largely under-served. Bombardier was the leader in the 50-seat jet segment, while Boeing and Airbus competed in the130-seat segment. However, there were no aircraft available in the 70- to 110-seat segment. This also seemed to be the segment with the maximum potential. According to estimates by analysts, more than 60 per cent of all flights in the US had been operating with passenger headcounts in this range. Although some of the smaller Boeing and Airbus aircraft could be and were being used to serve this segment, analysts said that these planes came with the same avionics and engineering as the larger planes and hence were not cost-effective. Embraer therefore opted to concentrate on this segment. It was decided that the new Embraer planes would fill the gap between 50- and 70-seat regional jets and the larger jets. Embraer said that it would introduce four aircraft in what was to be known as the Embraer Jet or more commonly, the ‘E-Jet’ family. The four new planes, the E-170, E-175, E-190 and E-195, were to span the 70/110seat market. The aircraft shared several features, with only minor 12 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

differences. For instance, the wings and engines of the E-170 and E-175 were the same, and they only differed in fuselage length and maximum take-off weight. The same applied to the E-190 and E-195. Reportedly, the four aircraft had 89 per cent commonality. The price tag of this family of aircraft were to start from $20 million apiece. On March 8, 2004, LOT Polish Airlines and US Airways each received an E-170. US Airways was the launch customer of the E-Jet in the United States. LOT was the first airline to operate a commercial E-Jet flight between Warsaw and Vienna on March 17, 2004. “E-Jets revolutionised the market for medium-sized jets by incorporating a more spacious cabin for greater passenger comfort and by making it versatile for operators to optimally manage their fleets,” said Paulo Cesar Silva, President & CEO of Embraer Commercial Aviation. “Over these ten years, we have continuously worked to improve the E-Jet family by perfecting its performance and reducing operating costs. This ensures that our customers have the best product in the up to 130-seat jet category and some of the best operational support services in the industry.” Embraer is the only manufacturer to have developed a family of four modern airplanes specifically for the 70- to 130-seat capacity segment. Since the formal launch of the programme in 1999, Embraer E-Jets have redefined the traditional concept of regional aircraft by operating in other business segments as well. Today, E-Jets are flying with mainline carriers, low-cost and regional airlines and with scheduled tour operators. In September 2013, Embraer delivered its 1,000th E-Jet, an E-175 that was acquired by Republic Airlines. That same year, the worldwide E-Jets fleet surpassed ten million flight hours and carried some 540 million passengers. Besides their proven reliability established by the average mission completion rate of 99.9 per cent, the global E-Jets fleet has logged more than seven million flight cycles. Operators of E-Jets have access to a strategically located worldwide customer support and network of 37 maintenance, repair and overhaul (MRO) centres, 12 of which are company authorised and 25 that are independent. Embraer E-Jets command a 50 per cent share of orders, a 62 per cent share of deliveries in the 70- to 130-seat jet segment and are operating in the fleets of 65 airline companies from 45 countries. In June 2013, Embraer launched E-Jets E2, the second generation of the E-Jets family. The first E2 is scheduled for customer delivery in 2018. Embraer has come a long way indeed in the journey of regional aviation.  SP

ENGINES

ENVIRONMENT

Rolls-Royce Advance and Ultrafan CTi fan blade flies for the first time

PHOTOGRAPH: Rolls-Royce

ADDRESSING ENVIRONMENTAL CONCERNS Increased environmental regulations and ever rising fuel costs are making jet engine manufacturers develop products that reduce emissions and noise pollution by R. Chandrakanth SP’S AIRBUZ • ISSUE 5 • 2014 • 13

ENGINES

ENVIRONMENT

A

PHOTOGRAPH: pw800.com

lthough the industry contributes only two per cent of the carbon dioxide emissions from fossil fuel use, the aviation industry per se is beset with environmental issues. It is reported that nitrogen oxide (NOX) emissions from burning jet fuel cause acid rain and smog. Also, the emission levels are likely to double by 2020. To counter this, in 2001, the European aviation industry set a target to reduce fuel consumption by 50 per cent per passenger-kilometre by 2020 and NOX emissions from commercial aircraft by 80 per cent during the same year. Hence, the onus lies on every segment of the aviation sector, from the aircraft manufacturer to the engine maker to an operator to a maintenance team to reduce the environmental impact. The engine maker comes into much more play as efficient engines make a substantial difference on not just the performance of the aircraft but also in monetary terms, effecting savings to the operator. Engine manufacturers understand this reality and are constantly working towards improvement in engines. The urgency to have engines, which make a difference environmentally as well as financially, is seen by all. Spurred by environmental regulations and ever rising fuel costs, jet engine manufacturers are developing products that reduce emissions and noise pollution. Two well-known engine manufacturers, Honeywell Aerospace in Phoenix, USA, and Rolls-Royce in Derby, UK, are carrying on enormous research work that is going on to make engines that address the concerns of not only operators but also of those who are championing the cause of the environment. Researchers in Europe and America are focusing on nextgeneration concepts such as open rotor and embedded engines to increase efficiency and reduce noise. For instance, Rolls-Royce at its Derby facility is working on the revolutionary Trent 1000. To maintain its leadership position, the company has made a commitment to invest in research in areas of advanced technologies such as: ● High efficiency compressors and turbines with fifth-generation 3D aerodynamics. ● Advanced lean burn low emission combustors. ● Advanced light-weight, heat resistant materials such as ceramic matrix composites or CMCs which allow the engine to operate at temperatures equivalent to half the temperature of the surface of the sun while maintaining component lives. Rolls-Royce’s Advance.  Earlier this year Rolls-Royce announced not one but two new engine designs. The first called, “Advance” offers some 20 per cent better fuel burn than the first Trent engines and will be ready by the end of this decade. The second, “UltraFan”, a geared design that could provide at least 25 per cent improvement in fuel burn and emissions, is expected to be ready for 2025. Rolls-Royce also deploys, where beneficial, new technologies to its in-service engine programmes. New technologies have helped produce the Trent XWB, said to be the world’s most efficient aero engine. The Trent XWB will be entering service this year on the Airbus A-350 XWB with Qatar Airways. Rolls-Royce has signed up to goals set by the Advisory Council for Aeronautics Research in Europe (ACARE) an organisation with about 40 members including government agencies and private companies. ACARE calls for the 14 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

following achievements by 2020, compared with the baseline year of 2000: 50 per cent reduction in fuel burn and carbon dioxide (CO2) emissions per passenger-kilometre; 80 per cent reduction in NOX and 50 per cent reduction in perceived external noise levels. Of the 50 per cent reduction in fuel burn however, 20 per cent is expected from engines, 20 per cent from airframes and ten per cent from better efficiency in air traffic management such as flying more direct routes. European engine maker MTU, by contrast, has proposed its own Clean Air Engine (CLAIRE) strategy, targeting a cumulative 30 per cent reduction in fuel burn from the power plant alone by 2035. Geared Turbofan Advantages. Similarly, General Electric GEnx and the Pratt & Whitney Geared Turbofan (GTF) have shown significant advances in environment-friendly technologies. GE, like most engine manufacturers, has started using lightweight materials. New in the GEnx is the use of a composite fan case which reduces weight and improves corrosion control. The composite fan case alone trims off 350 pounds, compared with a metal version. Pratt & Whitney aims to drive engine efficiency higher and pollutant emissions and noise levels lower with its Geared Turbofan, a system that differs significantly from the Trent 1000 and the GEnx. Pratt & Whitney Canada is a leader in the green evolution in aerospace with a new-generation of technologies and environmental stewardship across all facets of its business, outperforming the most stringent ICAO standards. Today it is working on some 600 ‘Green’ projects in collaboration with 20 universities across the country. Pratt & Whitney’s Low Emission Technologies.  Today, Pratt & Whitney Canada is a leader in developing low emission technologies. This achievement is the result of a revolutionary Technology for Advance LOw NOx (TALON) combustion technology that reduces emissions while delivering outstanding performance, durability and economy in operations. Pratt & Whitney Canada’s PW307 is the greenest engine in its market and shows an improvement of more than 30 per cent in emissions relative to ICAO standards. Its TALON 2 combustor technology also meets Zurich 5 requirements for no surcharges.

PurePower PW800

ENGINES

ENVIRONMENT

CFM Leap engine

Another great example is Pratt & Whitney Canada’s new PurePower PW800. This engine will show an improvement of up to 50 per cent in NOX emissions relative to ICAO standards, as well as an improvement of 35 per cent in carbon monoxide emissions. In the longer term, new technologies are being developed by Pratt & Whitney Canada to reduce NOX down to the 80 per cent reduction level, benefiting from further combustion and engine performance improvements. “A gear system, inserted between the fan and the low-pressure turbine allows us to run the fan and the low turbine at different speeds to optimise the fan speed independently from the lowpressure turbine speed,” Paul Adams, Senior Vice President (Engineering) has said. The company aims at bypass ratios of up to 16 to 18 and a noise level of 20 dB below the prescribed ICAO standards. Key partners in GTF development include MTU Aero Engines for the low-pressure turbine, Avio for the fan drive gear system, Volvo Aero for the turbine exhaust case and Goodrich for the nacelle. The technologies currently under development that are being hailed as plausible solutions in the medium term include the intercooled engine, the intercooled recuperated engine and the open rotor.

PHOTOGRAPH: CFM

CFM LEAP Cuts Fuel Burn.  GE is collaborating with partners Snecma, Airbus, Boeing, COMAC and Nexcelle to develop CFM LEAP (TM) aircraft engines for the Airbus A320neo, Boeing 737 Max and COMAC C-919 families of aircraft due to enter service in 2016. By utilising an extensive suite of advanced engine technologies, the CFM LEAP (TM) aircraft engines are being designed to provide significant reductions in fuel burn,

Open rotor technologies offer the potential for significant reduction in fuel burn.

noise and NOX emissions compared to the current CFM engine models offered in this aircraft class, the CFM56-TI, at equivalent levels of maintenance cost and reliability. Sustainable and Green Engine ITD.  The Sustainable and Green Engine (SAGE) ITD of Clean Sky demonstrates five engine technologies contributing towards the environmental targets set by ACARE. There are six engine projects contained in the programme, each targeting specific technologies and market sectors, led by a leading member of the European engines industry. Open rotor technologies offer the potential for significant reduction in fuel burn and CO2 emissions relative to turbofan engines of equivalent thrust. Higher propulsive efficiencies are achieved for turbofans by increasing the bypass ratio through increases in fan diameter but there is a diminishing return to this improvement as nacelle diameters and consequently weight and drag increase. Open rotor engines remove this limitation by operating the propeller blades without a surrounding nacelle, thus enabling ultrahigh bypass ratios to be achieved. Further improvements in propulsive efficiency can be gained for open rotor engines by using a second row of propeller blades rotating in opposition to the front row to remove the spin from the column of air to give a more direct thrust. The technical challenges of counter rotating open rotor engines are many, but are principally reduction of the noise created by the propeller blades to counter the loss of attenuation provided by a turbofan nacelle. Rolls-Royce has developed an open rotor propeller design to minimise noise and has demonstrated the effectiveness of these designs through scaled rig testing in the FP7 DREAM programme. The SAGE1 project is planned to acquire technology for the propulsion system, increasing the Technology Readiness Level (TRL) to TRL 5. The various R&D efforts of all the engine manufacturers are going to impact the future of aviation as fuel and environment concerns are going to remain on top of the agenda.  SP SP’S AIRBUZ • ISSUE 5 • 2014 • 15

TECHNOLOGY

cfm

WE ARE NOT TALKING WE ARE ACTING WE ARE DOiNG The CFM56 defines the industry standard in terms of the lowest emissions level of an engine in the single-aisle market by Jean-Paul Ebanga

“Regarding environmental challenges, we are not talking. We are acting. We are doing. Our focus is on the future we will leave to our children,” says Jean-Paul Ebanga, President & CEO, CFM International

G

PHOTOGRAPHs: CFM

“

reener engines” is a subject which has been part of the conversation at CFM International since the inception of the company. From the very beginning designing more environmentally responsible engines was part of the most important objectives of our company. This matter goes far beyond CFM or any other

16 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

manufacturer individually. The environmental challenge is not about market share, it is about what the future we leave our children and what contribution we are able to make towards achieving that goal. In that perspective, our industry has done a phenomenal job. In 50 years, we, as the engine industry, have reduced the fuel burn of our engines and the CO2 emissions by 50 per cent (70 per cent

TECHNOLOGY

cfm

CFM56-5B Engine

engines plus aircraft) and the noise footprint by 75 per cent, without compromising the economics. To have an appreciation for the CFM commitment on environmental matters, let me share few figures. When the CFM56 was introduced early in the 1980s, we were able to improve CO2 emissions by 25 per cent versus the previous generation of engines. Over the next 30 years of production, the CFM56 has been continuously improved and refined. It continues to define today the industry standard in terms of the lowest emissions level of an engine in the single-aisle market. With the CFM56 again, we have been at the forefront with Airbus to demonstrate the viability of the biofuel solution. And the trend continues. In 2008, CFM decided to engage in an unprecedented level of investment in order to develop the next generation of engines, the LEAP, which will bring another amazing step change in terms of environmentally-friendly engines. The LEAP engine will reduce fuel burn and the associated CO2 emission by 15 per cent compared to today’s best CFM56 engine, which is already the best in the industry.

In 50 years, we, as the engine industry, have reduced the fuel burn of our engines and the CO2 emissions by 50 per cent and the noise footprint by 75 per cent, without compromising the economics.

The point is that environmental concern is part of our DNA. We have in the past and we will continue in the future to invest in technology to put more efficient and more eco-friendly products on the market. We can be even a little bit more granular in order to better understand what this means. Let us do simple math. In 2013, 705 million tonnes of CO2 were produced by the all aircraft flying in the world. That translates to roughly 27,200 tonnes of CO2 per aircraft and per year. If an aged aircraft is replaced with a brand-new one, powered by our advanced LEAP engine, we could achieve between 15 and 40 per cent reduction in fuel burn and CO2 emissions, depending on the age of the engines being replaced. If we take a 25 per cent improvement as an average, it means, for each older aircraft replaced, we are going to eliminate around 6,800 tonnes of CO2 per year. That is the bottom line result of contribution of the engine industry. Regarding environmental challenges, we are not talking. We are acting. We are doing. Our focus is on the future we will leave to our children. From a broader industry perspective, we are very pleased by the current momentum around sustainable aviation and are proud to be part of it. We are in full support of the initiative by the Air Transport Action Group (ATAG). The ATAG is a fully respected not-for-profit association that represents all the sectors of the Air Transport industry and which aims to coordinate industry positions related to strategic environmental and infrastructure issues. From that perspective, we are committed to meeting our commitment to help fulfill the 2020 and 2050 objectives for CO2 emissions reductions, as well as to share our expertise in achieving results through global partnership.  SP SP’S AIRBUZ • ISSUE 5 • 2014 • 17

Civil Aviation

Freighter

LM-100J can operate from short, unprepared airfields without ground support equipment

LOCKHEED MARTIN FORAYS INTO COMMERCIAL AVIATION Lockheed Martin will be rolling out in 2017 the LM-100J, the civil freighter version of the C-130J military workhorse

PHOTOGRAPH: Lockheed Martin

by R. Chandrakanth

A

t the Farnborough International Airshow in 2014, US aerospace and defence behemoth, Lockheed Martin Corporation presented for the first time the LM-100J commercial freighter. The Ireland-based ASL Aviation Group picked up ten of these aircraft expressing confidence in the US group’s civilian freighter programme. 18 • SP’S AIRBUZ • Issue 5 • 2014

G

www.spsairbuz.com

The LM-100J is the civil-certified version of Lockheed Martin’s proven C-130J Super Hercules and is an updated version of the L-100 (or L-382) cargo aircraft. In January this year, Lockheed Martin officials submitted a ‘programme notification letter’ to the US Federal Aviation Administration (FAA), for a type design update for the Lockheed Martin Model L-382J airplane, a civil-certified variant of the C-130J Super Hercules to be marketed as the LM100J. Lockheed said it had asked the FAA to certify the LM-100J,

Civil Aviation

Freighter

which will mirror the four-engine C-130J military workhorse, but without military avionics and communications equipment. “The significance of that kick off is that we are expanding the capability of the C-130 enterprise into the commercial arena. That opens up a different market to us,” said Jack Crisler, Vice President of Business Development for Lockheed’s Air Mobility, Special Operations and Maritime Programs. Safair Has Largest L-100 Fleet. Safair, an ASL associated company based in South Africa, currently operates one of the world’s largest L-100 fleet. After the signing ceremony, the Chief Executive of ASL Aviation Group said, “We have long relied on our L-100s to deliver results that no other aircraft can produce. From flying humanitarian relief supplies over rugged African terrain to transporting key cargo within Europe and around the world. No other plane can do what a Hercules can do. Based on the world’s most proven airlifter, the LM-100J enables us to continue to support our global customers and position our company for the future with increased capabilities that only the LM-100J can deliver. We take pride in our legacy L-100 fleet and eagerly look forward to our future as LM-100J operators.” “Today is a monumental day in the history of the Hercules as we have the opportunity to start a new era in operations with ASL Aviation Group,” said Orlando Carvalho, Executive Vice President of Lockheed Martin Aeronautics Company. “As an L-100 operator, ASL Aviation Group knows the flexibility and reliability that only a Hercules can deliver. ASL’s LM-100Js will offer these attributes and more, helping Safair crews transport literally anything, anywhere, at any time in a technologically advanced airlifter that goes farther and faster than its predecessors. We are honoured and excited to share this milestone with ASL.” Multi-Role Platform. The LM-100J, through select design innovations, will perform as a civil multi-purpose air freighter capable of rapid and efficient transport of cargo. The LM-100J is an efficient and ideal airlift solution for delivering bulk and oversize cargo particularly to austere locations worldwide. The LM-100J incorporates technological developments and improvements over the existing L-100s that results from years of C-130J operational experience, including more than one million fleet-wide flight hours. The result of this experience and advancement translates to an aircraft that will deliver reliable service in a multi-role platform for decades to come. “With the LM-100J, we are leveraging the proven technology and capabilities of the C-130J Super Hercules to offer a modern, flexible commercial aircraft that is ready to deliver freight and support critical civilian missions, anywhere, anytime,” said Jack Crisler. As it is based on the operational C-130J, the civil variant LM100J can operate from short, unprepared airfields without ground support equipment. It requires minimal material handling equipment and enables rapid loading and offloading at truck-bed height. Growth provisions built into the LM-100J will enable it to support a variety of future missions including aerial spray, aerial firefighting and delivery, medevac/air ambulance, humanitarian aid and VIP transport. Critical Cargo Asset.  “The LM-100J is a natural expansion of the Super Hercules family. It is a modern answer to the existing, multi-tasked L-100 airlift fleet which, true to Hercules

form, is a workhorse that has been a critical cargo asset for 40 years,” said George Shultz, Vice President and General Manager, C-130 Programs. “Our customers and legacy L-100 operators tell us that the best replacement for an L-100 is an advanced version of the same aircraft. The LM-100J is that aircraft.” Lockheed’s announcement of a modified commercial variant of the C-130J comes during a down time for sales of military aircraft, its primary specialisation. Crisler said the LM-100J will be ready to “deliver freight and support critical civilian missions anywhere, anytime,” an indication that the company could be seeking to boost commercial sales amid large military spending cuts by the United States. The ASL Aviation Group is a well-established global aviation group providing an unrivalled array of aviation services. The group of aviation companies includes Irish airline Air Contractors, French-based airline Europe Airpost and a long-standing association and shareholding in South African airline and L-100 Hercules operator, Safair. There are two UK-based support service companies in the group, ACLAS Global and Air Contractors Engineering and also various leasing entities. The group’s operations are worldwide with the airlines operating a mixed fleet of wide body, short haul and turboprop passenger and cargo aircraft under their own brands and for a number of leading airlines. ASL Aviation Group has a fleet of 80 + aircraft and generated a total operating revenue of $500 million in 2013. ASL is a joint venture between CMB (51 per cent) and 3P Air Freighters (49 per cent). Airlifter in 16 Countries. Lockheed Martin’s LM100J is currently the airlifter of choice with 16 nations. Through select design changes, the LM-100J will perform as a civil multipurpose air freighter capable of rapid and efficient transport of cargo. The company expects to sell about 75 of the planes to mining and energy companies, and other commercial and government customers in coming years. More than 100 L-100s, which were the commercial variant of the first generation C-130, were produced from 1964-92 at the then Lockheed-Georgia Co, Marietta, Georgia, facility. Many of those airlifters are still operated worldwide by commercial and government customers. Prototype by 2017. Lockheed’s Orlando Carvalho, said that the LM-100J was in the mid-sixties million dollar price tag. An order for ten LM-100J would therefore be between $600 million and $700 million. An LM-100J prototype will be built and flight tested, probably at the C-130 factory near Marietta, starting in the first half of 2017. Global Freighter Forecast. Boeing in a forecast on world freighter market said that over the next 20 years, world air cargo traffic will grow 4.7 per cent per year. Annual growth rate in air freight, including express traffic, will average 4.8 per cent measured in RTKs. Airmail traffic will grow much more slowly, averaging 1 per cent annual growth through 2033. Overall, world air cargo traffic will increase from 207.8 billion RTKs in 2013 to 521.8 billion in 2033. With increased air cargo traffic, the world freighter fleet is also expected to grow with deliveries of 840 new factory-built airplanes and 1,330 passenger to freighter conversion airplanes. More than 52 per cent of those deliveries are expected to replace retiring airplanes and the remainder used for growth.  SP SP’S AIRBUZ • Issue 5 • 2014 • 19

CIVIL aviation

corporate

(From left) Alain Coutrot, Deputy Director, Research and Technology, Safran; Professor Mary Mathew of IISc Bengaluru; François Richier, French Ambassador to India; Dr Anil Wali, Managing Director, Foundation for Innovation & Technology Transfer, IIT Delhi; and Stéphane Lauret, CEO, Safran India

Safran announces R&D collaborations with Indian Institutions

PHOTOGRAPHs: Safran

Global aerospace, defence and security leader Safran has entered into R&D collaborations with the Foundation for Innovation & Technology Transfer of the Indian Institute of Technology (IIT Delhi) and the Society for Innovation & Development of the Indian Institute of Science (IISc Bengaluru) to initiate R&D in the field of advanced avionics systems for the development of next-generation aerospace technologies. These two agreements were signed in the presence of the French Ambassador to India François Richier.

I

n the initial stage, the projects are slated to involve the development of advanced, safe and secure multicore architectures and the evolution of advanced machine learning algorithms with low computational requirements. The contribution from these projects is expected to significantly enhance advanced avionics and security applications. Safran is looking to develop long-term R&D collaborations with Indian academic and research institutes. 20 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

On the occasion of this collaboration, Alain Coutrot, Deputy Director, Research and Technology, Safran, said, “Safran has always been proud of its association with India’s aerospace and defence programmes. With these collaborations, we look forward to a long and fruitful association with two of India’s premier institutes.” “These two partnerships are certainly a great step towards the development of future technology options in both aerospace and security domains in India. It also reinforces Safran’s commit-

CIVIL aviation

corporate

In an interview with SP’s AirBuz, Alain Coutrot, Deputy Director, Research and Technology, Safran, and Stéphane Lauret, CEO, Safran India, outlined their objectives and plans for the Indian and Asian markets SP’s AirBuz (SP’s): How different is Safran Electronics from Sagem? Alain Coutrot (Alain): Sagem is one of the companies from the Safran group. There are three divisions – Aerospace division, Defence systems and the third is Safran Electronics. This division delivers all the electronics that are needed by the other divisions of the group. This division makes the landing gear system, engine control units utilized by Snecma and Turbomeca. Customers for this division are the group’s business units. SP’s: What is the objective behind the collaboration? Alain: In a high-technology company like ours, we cannot have all the scientific knowledge from the planet. That is why we need to collaborate with public research institutions. This need had been identified a long time ago. About 40 years ago, we developed a common lab. This is a way of doing R&D with public institutions. SP’s: Which are the other markets that you are looking at other than India? Alain: We wish to develop this model for the entire planet. We want to take this to the countries that are developed in science and technology. We are building these collaborations in

ment towards India’s education sector. The group employs more than 2,600 highly skilled employees in the country with an average annual workforce growth of 30 per cent in the last decade. Over the past years, the group has proudly embarked on a series of intensive engineering and manufacturing collaborations in the country. Our strategy is in line with the vision of the Indian Prime Minister “Come to India, Make in India,” said Stéphane Lauret, CEO, Safran India. Dr Anil Wali, Managing Director, Foundation for Innovation & Technology Transfer (IIT Delhi), said on the occasion, “Consistent with our outreach focus, we are happy to initiate this R&D engagement with Safran, one of the major technology-heavy companies of the world.”

several parts of the world with high ranking scientific institutions and this is what we have begun in India. Clearly the technology that we will work on is not specific to Indian market, it can be very well applied to the global market. SP’s: Is this collaboration also connected to the ‘Make in India’ initiative by the Prime Minister? Stéphane Lauret: Safran’s growth in India is similar to any other multinational’s growth. We have been here for last 60 years. The group employs more than 2,600 personnel in the country with an average annual workforce growth of 30 per cent in the last decade. We have taken the right steps, we have manufactured for India, exported from India and next steps have been engineering, R&D and education manufacturing collaborations in the country. Over the past years, the group has proudly embarked on a series of intensive engineering and manufacturing collaborations in the country. Our strategy is in line with the vision of the Indian Prime Minister.  SP —By SP’s Correspondent For complete video of the interview, visit www.spsairbuz.com

Chief Executive, Professer Jayant Modak, Society for Innovation & Development (IISc Bengaluru), said, “IISc is extremely happy to collaborate with Safran, a leading aerospace company of France. We are indeed pleased that one of our start-ups, Morphing Machines, is also collaborating with Safran R&D.” Welcoming the signature of these two agreements, Ambassador François Richier said, “I am glad to see prominent French companies like Safran so involved in cooperating on cutting-edge technologies in India. In liaison with the French Embassy, Safran is developing collaborations with prestigious Indian institutions like IIT Delhi and IISc Bengaluru, which is most promising for IndoFrench cooperation.”  SP SP’S AIRBUZ • ISSUE 5 • 2014 • 21

Civil

Regional Aviation

The E195-E2 from Embraer

REGIONAL AIRCRAFT FOR INDIA The next round of growth in the Indian airline industry will be triggered by expansion of regional aviation into remote and not easily accessible regions by B.K. Pandey

PHOTOGRAPH: Embraer

S

oon after coming into power, hopes of the crisis ridden civil aviation industry in India went soaring when the Narendra Modi Government turned its attention to this perhaps most neglected sector in the country. The focus of the new government to begin with was on airport development and air connectivity, two areas that are critical in the years to come for the growth and well-being of the Indian civil aviation industry in general and the Indian airline industry in particular. In fact, the government was embarked on drafting a new civil aviation policy that would be comprehensive and would incorporate far-reaching changes crafted to have beneficial impact on regional aviation within the country. In fact in September this year, the government even initiated a dialogue with all the stakeholders on the new comprehensive civil aviation policy. However, in the second week of October, the spirits of the Indian airline industry were dampened somewhat when they received the news that V. Somasundaram, Secretary, Ministry of Civil Aviation (MoCA), had approved the deferment of the policy on regional and remote area air connectivity until further orders. Hopefully, the deferment is going to be short-lived. The State of the Indian Airline Industry.  Hav22 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

ing lost $10.6 billion in the last seven years and currently languishing under the crushing burden of a combined debt of $15.83 billion, the plight of the Indian airline industry is disconcerting indeed. This segment of the industry has suffered the triple onslaught of high airport charges, exorbitant tax on aviation turbine fuel (ATF) and a slowdown in the rate of growth in domestic passenger traffic. The MoCA expects domestic carriers to enhance the number of flights to the smaller cities normally referred to as Tier-II, Tier-III and Tier-IV cities. These routes are generally regarded unprofitable. India is emerging as an important economic entity in the world and if assessment by PricewaterhouseCoopers (PwC), an accountancy firm of global repute based in London, is to be relied upon, the nation is moving decisively to overtake the United Kingdom to become the third largest economy in the world after the United States and China. It is a well established fact that the civil aviation industry is a major contributor to economic growth of a nation. Unfortunately growth in the Indian civil aviation industry has been lagging behind the resurgence in the Indian economy. One of the indices of the extent to which the Indian civil aviation industry is lagging behind the growth in the national economy is the degree of penetration amongst the population in respect of air travel. In India, only around three per cent of the population

civil

Regional Aviation

of 1.3 billion avail of the facility of air travel. While the majority are unable to travel by air on account of the prohibitively high cost, there is a large segment of the population that can afford air travel but is unable to do so because of lack of access to this facility. The nature of the problem can be best appreciated through a comparison between the present state of airport infrastructure as well as the size of commercial fleets available in the US against that in India. With a population that is under 25 per cent of that of India, the US has around 15,000 functional airports as against 132 in India. As for comparison of the number of commercial aircraft in operation, the total number of airliners in India is just under 400 as against around17,000 in the US. These figures clearly reflect the enormous scope there is for growth in the airline industry of India, a nation aspiring to catch up with the US economically as well as reach greater heights of glory in the regime of civil aviation. Prospects of Growth. As per assessment by KPMG and the Federation of Indian Chambers of Commerce and Industry (FICCI), by 2020, India has the potential to become the third largest aviation market in the world and could even emerge as the largest by 2030. However, for these aspirations to be translated into reality, the government would have to seriously evaluate the true potential of this sector and institute measures for its exploitation. The government would have to initiate measures simultaneously in the different areas of the Indian aviation industry. But the most important area would be that of airport infrastructure development in the TierII, Tier-III and Tier-IV cities. Currently bulk of the passenger traffic flows between the metros or between the metros and other large non-metro cities. In all, there are just about 36 airports out of the 132 that handle most of the passenger traffic in the country and these routes are nearly saturated. The annual passenger traffic handled by the 36 busiest airports in the country are as under From the chart alongside it appears that bulk of the passenger traffic in India is handled by 15 airports. It should be obvious therefore that to maintain a respectable growth trajectory in the Indian airline industry, aerial connectivity needs to be expanded and provided to those towns and cities where such a facility does not currently exist. Just as an example, amongst the seven North Eastern states, two of the state capitals do not have aerial connectivity at all. Also as rail and road connectivity to and amongst the North Eastern states is also extremely poor, the entire North East region has a huge requirement for air connectivity for its effective economic integration with the rest of the nation. The poor state of road, rail and aerial connectivity has served to impede the economic development of the region which is resource rich and is endowed with tremendous economic potential. The next round of growth in the Indian airline industry will be triggered by expansion of regional aviation into remote and not easily accessible regions. These areas would add huge volumes of passenger traffic hitherto unexploited owing to lack of air connectivity. However, this would require reactivation of the 300 odd unused airstrips spread in all parts of the country and provide them with terminals with basic facilities as well as No of Airports

Volume of Traffic Handled

5

10 million to 37 million

10

2 million to 9 million

11

1 million to under 2 million

20

Under 1 million

building of a large number of new low-cost, nofrill Greenfield airports that can operate not only small turboprop aircraft; but also medium size, single aisle regional jets. It goes without saying that this will spur the market in India for regional airliners. What will be important is that the airliner selected to fuel the growth of regional aviation, is of the right size. Enter the E2 Jets from Embraer. Regional connectivity on the Indian commercial aviation scene has been dominated from the very beginning by twin-engine turboprop aircraft such as the ATR-42 and the ATR-72, both French products of renown. These aircraft have a passenger capacity ranging between 50 and 70 and compared to jet airliners such as the Boeing 737 and the Airbus A320 class of single-aisle airliners, are far more economical to operate on short routes. These aircraft are also capable of operating from runways of around 1,300 metres in length, much shorter than the 1,800 metres long runway required by the Boeing 737 or the 1,500 metres long runway required for the Airbus A320 single-aisle jet airliner. Later the ATRs were to face severe competition from the twin-engine Q-400 from Bombardier of Canada, a more powerful turboprop airliner nearly in the same class as the ATRs. The Bombardier Q-400 can carry between 68 and 78 passengers. Between the turboprop and the Boeing 737 or Airbus A320 class single-aisle jet airliners, there is now available the E-2 family of single-aisle passenger jets from Embraer of Brazil. Designated as the E-175 E2 and the E-195 E2, this family of E-Jets have a capacity of 80 passengers on the E-175 going up to 110 on the E-195 could provide the answer to cost effective regional connectivity in the new scheme of things the MoCA is working on. At their maximum takeoff weight, the Embraer E-2 regional jets can provide connectivity between airports located up to 900 nautical miles apart. Such distances are too large to be served economically by turboprops. The E-2 jets can also comfortably operate from runways that are suitable for the regional turboprops such as the ATRs and the Q-400. As for the economics of operations, the E-195-E2 jets are reported to be around 20 per cent less expensive in terms of seat mile costs as compared to the Boeing 737 or the Airbus A320. As per Mark Dunnachie, Commercial Aviation Vice President for the Asia-Pacific region, “Even the cost of operating an E-175-E2 will be cheaper per seat mile as compared to turbo-propeller aircraft.” Embraer E-Jets have been immensely successful in their own home turf in Brazil where with a fleet of E-Jets, Azul Airlines has established efficient regional connectivity amongst the smaller or secondary cities competing successfully against the Boeing 737 and Airbus A320s that have not proved to be profitable. In India, the newly launched Vijayawada-based regional airline Air Costa serves a network of secondary markets with smaller capacity 100seat Embraer E-Jets and avoids direct competition with those airlines operating the Boeing 737 or the Airbus A320 on heavily subscribed routes. As per Ramesh Lingamaneni, Executive Director of the LEPL Group and Chairman of Air Costa, “Regional air services have enormous potential in India especially those connecting Tier-I, Tier-II and Tier-III cities. Our initial experience with our fleet of Embraer E-Jets has been very positive.” Air Costa has a firm order for 50 Embraer E2 aircraft with an option for another 50 planes. The order, both firm and option, is equally divided between Embraer’s E-190-E2 and E-195-E2 jets. For a healthy and rapid growth of regional aviation in India, getting the right aircraft will be a critical factor.  SP SP’S AIRBUZ • ISSUE 5 • 2014 • 23

Regional Aviation

REGULATORY

ROUTE DISPERSAL GUIDELINES

TATA-SIA’s venture ‘Vistara’

What is really required is a thorough and professional review of the Route Dispersal Guidelines, supported by a healthy debate amongst the stakeholders leading to a mutually acceptable policy framework for regional and remote area air connectivity by A.K. Sachdev

PHOTOGRAPH: Tata SIA Airlines

E

ver since Indian civil aviation witnessed the second wave of liberalisation unveiled in 2003, air connectivity to regional and remote areas has straggled in contrast to inter-metro networking. New players embarked on new paradigms and the playing field itself was dissimilar to the one which ushered in the first liberalisation groundswell that imploded so meekly in the 1990s. However, one hangover of the first wave survives till today albeit somewhat transformed from its original avatar, in the form of Route Dispersal Guidelines (RDG) that were stipulated to promote air connectivity for smaller cities, especially in remote areas which suffered from poor road and rail connectivity. Stakeholders and aviation experts have occasionally questioned their relevance but their pleas to jettison the RDG have not been complied with so far. The RDG Framework. First introduced in 1994, the RDG classified routes into three categories. Category-I had the traditionally surplus generating routes; Category-II included lossmaking routes and Category-III comprised the remaining routes. 24 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

The profitable Category-I inter-metro routes subsidised losses on Category-II routes that served destinations in regions of difficult terrain, the North Eastern region, Jammu and Kashmir, Andaman and Nicobar and Lakshadweep. The RDG mandated that on Category-II routes, every operator deploy at least ten per cent of capacity deployed on Category-I routes. Capacity deployed is reckoned in Available Seat Kilometres (ASK). Of the capacity thus required to be deployed on CategoryII routes, at least ten per cent needed to be deployed exclusively within the North Eastern region, Jammu and Kashmir, Andaman

The new policy being considered appears to be a step in the right direction to make regional aviation more attractive to operators.

Regional Aviation

REGULATORY

Indian Airliners

PHOTOGRAPH: SP Guide Pubns

and Nicobar and Lakshadweep Islands. The guidelines also mandated a sub-category within Category-II, referred to as CategoryIIA region which included Jammu and Kashmir, Andaman and Nicobar and Lakshadweep. It was obligatory for scheduled carriers to deploy on Category-IIA routes, at least ten per cent of the capacity deployed on Category-II routes. Also, every operator needed to deploy on Category-III routes at least 50 per cent of the capacity deployed on Category-I routes. However, for obvious reasons, the metro airports dominate passenger traffic figures with more than 90 per cent of the total. Through a normal process of growth, at least ten airports originally placed under Category-III now meet the requirements to be re-categorised as Category-I. Were that to be done, the quantum of ASK deployed on the regional and remote airports would increase significantly. However, this increase in regional connectivity would impinge on revenues of airlines, already reeling under heavy losses. New Proposed Policy. The 1994 policy has been tweaked minimally since then but the airline industry and the Ministry of Civil Aviation (MoCA) have realised the need to make significant changes to the RDG. In March 2014, the MoCA issued a new “Policy on Regional and Remote Area Air Connectivity”. Regional Air Connectivity, as per the new policy, is the provision of air transport services to under-served and un-served cities with potential while Remote Air Connectivity relates to the provision of air transport services to areas not adequately connected through surface transportation including parts of the country with difficult terrain and areas of strategic importance.

The new policy provides for incentives to operate to airports identified for enhanced air connectivity. Incentives include exemption from landing and parking charges, RNFC charges, PSF, fuel throughput charges and own ground handling. A list of airports identified for this purpose includes 29 regional airports

Proposed Trunk Routes 1.

Mumbai – Bengaluru

16.

Kolkata – Delhi

2.

Mumbai – Kolkata

17.

Kolkata – Bengaluru

3.

Mumbai – Hyderabad

18.

Kolkata – Chennai

4.

Mumbai – Chennai

19.

Delhi – Bengaluru

5.

Mumbai – Delhi

20.

Delhi – Hyderabad

6.

Mumbai – Thiruvananthapuram

21.

Delhi – Chennai

7.

Mumbai – Goa

22.

Delhi – Lucknow

8.

Mumbai – Cochin

23.

Delhi – Pune

9.

Mumbai – Chandigarh

24.

Delhi – Ahmedabad

10.

Mumbai – Ahmedabad

25.

Delhi – Goa

11.

Mumbai – Jaipur

26.

Delhi – Patna

12.

Mumbai – Lucknow

27.

Delhi – Amritsar

13.

Mumbai – Mangalore

28.

Delhi – Varanasi

14.

Chennai – Hyderabad

29.

Bengaluru – Pune

15.

Chennai – Pune

30.

Bengaluru – Hyderabad

SP’S AIRBUZ • ISSUE 5 • 2014 • 25

Regional Aviation

REGULATORY

under the Airports Authority of India (AAI), six regional airports operated by state governments/other agencies, eight civil enclaves and remote/strategic area airports in the North East states except Guwahati and Bagdogra, all the airports in Jammu and Kashmir except Jammu and all airports in Lakshadweep and Andaman and Nicobar Islands. All scheduled airlines would be required to operate at least six per cent of their total domestic operating capacity to airports in remote/strategic areas listed above. It would also be mandatory for airlines to operate at least one per cent of their total operating capacity on sectors/routes within the remote/strategic areas. In August, the government circulated a new “Draft for Discussion on Revised Policy on Regional and Remote Area Air Connectivity” to all stakeholders seeking their comments by September 4. The new draft was largely on the lines of the policy unveiled in March, but mandated that airlines meet the set objectives in a graduated manner, 70 per cent beginning with the summer schedule of 2015, 80 per cent by the 2015 winter schedule, 90 per cent by 2016 summer schedule and 100 per cent by the 2016 winter schedule. Under the new policy, airlines operating under the Regional Scheduled Operating Permit would have the option to convert to National Scheduled Airlines or Scheduled Commuter Airlines. A period of three years would be allowed for conversion into National Scheduled Airline. The policy also permitted operators under Non-Scheduled Operator Permit to convert to Scheduled Commuter Airline or Air Charter Operators. It also defined Trunk Routes (between large cities), Regional Routes and listed 30 Trunk Routes (see box). A total of 48 Incentive Destinations were also listed where Scheduled Operators would get financial incentives. Soon thereafter, Tata-SIA Vistara, that is to launch operations shortly, appealed to the government to delay activation of the policy by a year as it would affect the viability of new carriers. Vistara wrote to the MoCA, “We would like to submit that this proposal will only accelerate the immediate demise of new start-ups before they are given the opportunity and time to bolster their performance, financially and operationally. Being a Tata company, we understand the responsibilities we must undertake to address the needs of the nation to the fullest extent possible. The proposed guidelines on regional connectivity may be made applicable only when an airline has been given international flying rights, in order to allow sufficient bandwidth for such diversified operations and also for a new airline to establish itself firmly.” After a meeting between the Minister of Civil Aviation and top managers of all airlines, the plan was formally put on hold on October 6. Interestingly, while Vistara opposed the new policy, AirAsia India, the low-cost joint venture in which Tata Sons is involved, was among those that supported the new regional connectivity policy. It is expected that a new policy will be implemented in December this year. RDG and Regional Airlines. RDGs are applicable only to national airlines and not to regional carriers. A Scheduled Regional Air Transport Service (Regional Airline) is defined by DGCA as an airline which operates primarily in a designated region and which, on grounds of operational and commercial exigencies, is allowed to operate from its designated region to airports in other regions, except the metro airports of other regions. Regional airlines are not permitted to operate on Category-I routes except in the Southern region which has three metros wherein a regional airline is allowed to operate between 26 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

the metros namely Bengaluru, Chennai and Hyderabad. Thus, as can be seen, RDG applies only to national airlines and not to regional ones. By an extension of that logic, regional airlines are not permitted to trade-off their ASK on Category II, IIA and III routes with national carriers. They are thus constrained to fly routes within their region. Moreover, they are denied the benefit that could have accrued from a reciprocal arrangement with a national airline which did not have an aircraft suitable for short trips typical of regional aviation. This policy has effectively kept regional aviation stifled. Several applicants have, in the past, obtained no objection certificates, the first step towards launching a regional airline but only two actually started operations. MDLR Airlines was launched in 2007 in the Northern region but, after operating at a subsistence level for two years, terminated its operations. Religare’s Air Mantra has been the only other regional airline to actually start flying but it suspended operations after a few weeks of insipid experience flying regional. Air Costa is the only regional airline currently operational. Thus, despite RDGs and the underlying rationale, regional aviation in the form of regional airlines has been negligible. So a basic question stares us in the face: if not RDGs, then what is required to nurture regional and remote connectivity? Are the constraints of RDGs, often described by airlines as unreasonable and unfair burdens, to be removed altogether? Will market forces drive such connectivity on their own steam? Or will air connectivity to TierII and Tier-III cities remain a distant dream? Role of State Governments.  The new policy amplifies the role of state governments, calling them important stakeholders in enhancing air connectivity within their area. State governments would be asked, as per the policy, to provide for security and fire fighting services, infrastructure for proper access to airports, waiver of duty on electricity charges, waiver of municipal charges for five years, underwriting of seats and reduced VAT/ sales tax on aviation fuel. That brings us to another important aspect: the role of state governments in bolstering infrastructure to support air connectivity. Were they to take concrete steps to ensure that airports are operationalised and incentives provided to airlines for operating from those airports, the natural consequence would be a boost to regional and remote air connectivity, the underlying motivation behind RDGs. Conclusion.  The intent behind RDGs was laudable but did not achieve the desired objective. This was because the RDGs served as a “stick” to new and existing airlines, regulating them to fly a minimum proportion of their metro-to-metro ASK on regional connectivity without any tangible returns. Perhaps a “carrot” in the form of financial relief through lower aviation fuel sales tax/VAT, airport and navigation charges at smaller airports may have proved more useful. The new policy being considered appears to be a step in the right direction to make regional aviation more attractive to operators. Meanwhile, airlines’ fixation towards the metros has led to an overstretch at a handful of airports and their finite support systems have reached their limits of distension, pushing fresh ASKs inexorably towards Tier-II and Tier-III airports. This trend of expanding regionally is yet a fledgling one; what is really required is a thorough and professional review of the RDGs, supported by a healthy debate amongst the stakeholders leading to a mutually acceptable policy framework for regional and remote area air connectivity.  SP

Regional Aviation

Air Costa

Air Costa Chairman L. Ramesh addressing the press

AMBITIOUS AIR COSTA Ramesh Lingamaneni says that the airline industry is fraught with challenges and Air Costa is ready to overcome these

PHOTOGRAPHs: Air Costa

T

by R. Chandrakanth reporting from vijayawada

he only exclusive regional airline in India, Air Costa, is planning to become a scheduled airline soon with pan-India connectivity and it has applied to the Directorate General of Civil Aviation (DGCA) for the change in their status. Delving into details of their plans, the Chairman of Air Costa, Ramesh Lingamaneni told SP’s AirBuz that the process may take about three months. In the meantime, in the period February-March 2015, Air Costa will take on lease another two Embraer aircraft followed by another two in July-August, taking the total aircraft with the airline to eight. Air Costa completed one year of existence as of October 15 this year and the company is celebrating its first anniversary with ambitious plans in the pipeline. Ramesh Lingamaneni said that the airline would also go international as and when the 5/20 rule ( five years operation and 20 aircraft) that applies to start-up airlines is relaxed either on its own or with an international partner, both options being open at the moment. However, he was categorical that for domestic operations, it would firmly stick with Embraer aircraft and for international operations it would look at suitable aircraft. He mentioned that some international players had evinced interest

in the airline, but “Air Costa is in no hurry. We have planned our moves carefully. We want to go slow and steady.” The airline, he said, is expected to achieve total break-even by March 2015, thanks to the good passenger load factors Air Costa is recording. The average passenger load factor is at 71 per cent. In May this year it flew over 50,000 passengers and the average utilisation of the aircraft was about nine and a half hours. The two Emraer E-190 aircraft with seating capacity of 112, are clocking a utilisation rate of 14.5 hours while the two E-170 aircraft for short haul are flying 7.5 hours a day. Ramesh Lingamaneni said that the airline industry was fraught with challenges and Air Costa was ready to overcome these, whether it was capital infusion or regulatory provisions. Of the promoters stake of $100 million, about $65 million has been used, giving the airline sufficient buffer before it thinks of external borrowings. He is hopeful that the present government at the Centre would carry out the necessary reforms in the aviation sector and that the Minister for Civil Aviation Ashok Gajapathi Raju has a positive approach to this issue and there has been some forward movement. Talking about pan-India connectivity, the CEO of Air Costa said that the airline would “play to its core strength” that of conSP’S AIRBUZ • ISSUE 5 • 2014 • 27

Regional Aviation

Air Costa

necting Tier-II and III cities to the major metros. “We are here to connect underserved and virgin destinations and we see potential.” The phase I of the airline operations (2013-14) was to focus on the Southern region and phase II (2015-17) is to connect pan-India. Phase III (2018-22) will factor in international operations.

this month with another aircraft arriving every quarter through 2018 when the first E-190-E2 arrives. The E2s are fourth-generation with full fly-by-wire (FBW) that enhances handling qualities and maximises fuel-efficiency. The E2 will take advantage of the FBW expertise developed by Embraer for the E-Jets, Legacy 500 and the KC-390. E2 Demerger.  The Chief Financial three-axis closed loop system improves Officer, Vivek Choudhary told SP’s Airaircraft stability during turbulence and Buz that Air Costa which is part of the provides complete envelope protection in LEPL Group, the holding company which all phases of flight. The closed loop conis involved in real estate, infrastrucfiguration allows the E2 empennages to ture, power, etc, would be going in for be smaller thus reducing in-flight drag and demerger soon. The new entity will be weight of the aircraft. E2’s advanced intecalled LEPL Airlines Pvt Ltd and in so grated avionics system provides excepdoing, the company will be able to attract tional situational awareness enhanced by private equity investments to fund its large landscape displays and reduced pilot the airline would future expansion plans. The delivery of workload. Innovative technologies such “play to its core the 50 Embraer E-Jets which the airline as synthetic vision and advanced flight ordered at the Singapore Air Show in management, support more fuel-efficient strength” that of 2014, is expected to commence in 2018. direct approaches to airports. Cockpit connecting Tier-II Asked about how the airline shifted commonality with current-generation and III cities to the choice of aircraft from Bombardier to E-Jets allows for a smooth transition by Embraer, Vivek Choudhary said: “We pilots to the new E2 platform. major metros. keenly watched SpiceJet and found that The E2s sport high-aspect ratio wings there were certain challenges including with swept wing-tips that, combined —Ramesh maintenance support and as we were going with redesigned pylons and other aeroLingamaneni, only regional, Embraer was the right fit. As dynamic improvements, coupled with Chairman of regards ATR, you know it is not available enhanced fourth-generation full FBW, in the open market.” On its aircraft acquiachieve double digit lower fuel consumpAir Costa sitions, Vivek Choudhary clarified that the tion compared to current-generation 50 E-Jets on order, would be on the basis of E-Jets. The wing and engine combination ‘sale and lease back’ options and all acquisifor the E-175-E2 and a common larger tions before 2018 would be on lease. wing and engine for the E-190-E2/E-195-E2 are optimised to Ramesh Lingamaneni said that two acres of land had been deliver maximum performance. acquired in Vijayawada for locating the proposed maintenance, repair and overhaul (MRO) facility to handle up to C-checks. Interior Design for a New Generation.  A look Ramesh Lingamaneni was full of praise for the present State inside an E2 jet reveals thoughtful, well-conceived design that has Government for its initiatives towards facilitating business activ- the power to please from all perspectives. A totally new environity in the aviation sector. It had reduced sales tax on aviation ment far exceeds the norm and thoughtfully addresses the varied turbine fuel (ATF) to one per cent from 16 per cent and this is a needs of passengers, crew, airlines and leasing companies alike. good incentive. The State of Tamil Nadu currently has the highest As within a fashionable hotel or restaurant, a prevailing sense rate of sales tax on ATF which stands at 29 per cent. With regard of quality begins with the welcoming atmosphere at the boarding to regulatory issues, Captain Babu, pilot in Air Costa, mentioned point and continues with such elements as style and tone of lightthat the government has been having regular meetings of CEOs of ing, contemporary materials, quality fabrics, and glass partitions. airlines where issues are taken up. Within these surroundings passengers enjoy their own physical Air Costa as of date connects nine cities—Vijayawada, Chen- and emotional “space within a space”, their “personal territory.” nai, Visakhapatnam, Bengaluru, Hyderabad, Jaipur, Tirupati, This “bubble” with control is achieved through the coming Coimbatore and Ahmedabad—operating a total of 38 daily flights together of small things that deliver a larger benefit, elements on a daily basis. such as clarity of seat signage, individual PSUs, seat back screens and additional leg room in economy class. Happy with E-Jets. Air Costa’s E-190-E2s will be conThe passenger-preferred 2x2 configuration gives a perception figured with six business class and 92 economy class seats. The of wider aisles while simplifying movement through the cabin. The larger E-195-E2 will have 12 business class and 106 economy position of bin doors when open, coupled with dramatic ceiling class seats. The airline is confident about the future of regional illumination, creates a sense of height and space above the aisle. aviation in India given its impressive performance since it was Premium seating further conveys a feeling of openness. Overlaunched four months ago. The carrier is filling an average of 74 all, the E2 interior generates a smoothing-out effect on the pasper cent of the seats on every flight on the two E-170s it is cur- senger journey experience, reducing the traditional stress points rently flying to six cities. Two E-190s are scheduled for delivery of boarding, in flight activity and disembarking.  SP 28 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

SHOW REPORT

NBAA 2014

A view of the static display at NBAA 2014

Runaway Success NBAA 2014 featured about 1,100 exhibitors. Over 26,000 people attended the show, including representatives from 49 US states and 95 countries around the world.

PHOTOGRAPH: NBAA

O

by R. Chandrakanth

rlando in Florida is better known by its sobriquet ‘The Theme Park Capital of the World’ and attracts tourists from all over the world. It is also one of the busiest American cities for conferences and conventions. And this year the National Business Aviation Association (NBAA) held the 2014 Business Aviation Convention and Exhibition in this ‘City Beautiful’ and the business aviation industry got extremely busy. “This year’s show was an enormous success, filled with announcements and product introductions,” said NBAA President and CEO Ed Bolen. “The exhibit floor and aircraft displays had lots of activity and excitement. The education sessions were informative and well attended. The event once again showcased the industry’s size, diversity and significance. Perhaps most important, the show provided many reminders that ours is an industry characterised by passion and professionalism.” NBAA 2014 which took place from October 21 to 23, featured about 1,100 exhibitors. Additionally, over 100 aircraft were displayed in several locations at a sold-out static display at Orlando Executive Airport, at an indoor display inside the convention cen-

tre and at various exhibitor booths on the show floor. More than 26,000 people attended the show, which included representatives from 49 US states and 95 countries around the world. Also at the session, International Jet Aviation Services received NBAA’s 2014 Al Ueltschi Award for Humanitarian Leadership for its work, through Make-A-Wish America, to use business aviation to help kids’ dreams take flight. A new advocacy initiative announced by Bolen during the convention’s Media Kickoff Breakfast, was unveiled, called “Business Leaders on Business Aviation.” The initiative highlights testimonials from dozens of CEOs on the value of business aviation to their companies and builds on similar testimonials from ten CEOs, introduced at NBAA 2013, called the “Top Ten.” This year’s CEOs were featured prominently at NBAA 2014 signage displayed throughout the event’s exhibit halls, meeting areas and static aircraft displays, as well as in advertisements appearing in the “Show Daily” publications. A charitable benefit event, co-hosted by NBAA and Corporate Angel Network raised nearly $4,00,000 in support of CAN’s mission to provide life-saving flights to take cancer patients to treatment centres aboard business aircraft. NBAA 2015 in NovemSP’S AIRBUZ • ISSUE 5 • 2014 • 29

SHOW REPORT

NBAA 2014

ber.  “Clearly, in a host of ways, NBAA’s 2014 convention is one for the record books,” Bolen said. “We are thrilled by the enthusiasm that marked each of the show’s three days, and we are already making plans for next year’s convention in Las Vegas, Naveda, from November 17 to 19, 2015.”

PHOTOGRAPHs: Embraer, Gulfstream, NBAA

Business Aviation Opportunities with Unmanned Aircraft Systems.  “Make no doubt about it: unmanned aircraft systems (UAS) are coming and they will offer amazing opportunities for flight departments to expand their responsibilities and become more relevant to their companies,” said Brad Hayden, President and CEO of Robotic Skies at the convention. As covered in a previous education session, commercial use of UAS is currently prohibited in US airspace. As they always have been, model airplanes flown by hobbyists are allowed, but the industry is waiting for the Federal Aviation Administration (FAA) regulations to permit employment of UAS for business. That business could be anything, from filmmaking to crop dusting, public safety to rural medical services, but panelists said commercial uses for UAS often fall into “the three Ds”, jobs that human beings would find dull, dangerous or dirty. As their cost comes down, UAS will also be able to undertake tasks more cheaply. “The commercial opportunities are not here today,” said Paul McDuffee, Vice President of Government Relations and Strategy for Insitu, a maker of UAS, “but they are beginning to emerge.” With the FAA close to issuing a proposed rule for commercial use of small UAS, McDuffee estimated the UAS market would open up in about three to five years. When it does, there will be many opportunities for flight departments and business aviation professionals. Some of those opportunities include outsourcing aircraft and avionics certification, UAS operator training and maintenance for unmanned aircraft. Just as UAS will create new opportunities in the business aviation industry, it will also make it safer. Career Opportunities in Business Aviation.  Careers in aviation can range from pilot or air traffic controller, to aviation attorney or UAS engineer, a room full of high school and college students learned at NBAA’s convention. “The one central thing is, do what you love to do,” said Steve Brown, Chief Operating Officer of NBAA. “You will probably work about 44 years or about 12,000 days. People in this industry don’t count the days, they have passion for what they do.” Amelia Rose Earhart, a pilot, former traffic and weather reporter and now head of the Fly With Amelia Foundation, encouraged the students to think big and ask questions of people in the industry. “Don’t be nervous and don’t be shy,” she said. “You have so many opportunities in all facets of aviation.” Air traffic control is another career track with many opportunities, the students were told by Trish Gilbert, Executive Vice President of the National Air Traffic Controllers Association. Although the job can be very stressful and has a rigorous training component, the rewards can be gr eat. “Being an air traffic controller is very challenging and gratifying,” said Gilbert, noting that the FAA plans to hire 1,000 controllers per year for the next ten years. Demystifying Cabin Connectivity Technology.  A cabin technology education session provided an overview of the state of cabin connectivity and offered hope that the capabilities of onboard systems will grow as providers develop more powerful solutions to business passengers’ desires for greater speed and access. 30 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

(Top to Bottom): Embraer Lagacy 450, Gulfstream G500 and G600 Cabin, Dassault Falcon 5X on display at the NBAA 2014

SHOW REPORT

NBAA 2014

Bethany Davis of Gulfstream Aerospace outlined the connectivity systems typically installed in long-range business jets. The three satellite systems are Honeywell Inmarsat Swift Broadband (L band), Honeywell Inmarsat Jetconnex (Ka band) and ViaSat Yonder (Ku band). The fourth system, Gogo Biz, is an air-toground system. Christopher Kissinger of Boeing Company noted that his company conducts half-day flight attendant training sessions twice a year in which written and functional tests are administered. Davis added that when Gulfstream delivers new airplanes, a cabin specialist demonstrates the connectivity and cabin management systems to customers. Meanwhile, cabin connectivity providers are working on multiple ways to enhance the cabin connectivity experience, including obtaining more satellite capacity to boost coverage and data rates. Embraer’s Portfolio on Display.  Embraer Executive Jets exhibited its full aircraft portfolio at NBAA 2014. This was the first time that the company showcased all seven aircraft on static display, including a prototype of the Legacy 450 mid-light jet, which is expected to be certified in mid-2015. “We are thrilled to bring the Legacy 450 to NBAA alongside the Legacy 500, which was delivered to the first customer last week,” said Marco Túlio Pellegrini, President and CEO, Embraer Executive Jets. “These are revolutionary aircraft, delivering true innovation in their classes.”

PHOTOGRAPH: Beechcraft

Gulfstream Full-Size Cabin Mock-Up of G-600.  Gulfstream showcased a full-size cabin and cockpit mock-up of the G-600. The G-600 and the slightly smaller G-500 were announced October 14. A G-500 is due for its first flight early 2015. Gulfstream projects it will receive type certification from the FAA and EASA in 2017 and begin deliveries in 2018. The G-600 flighttest programme is expected to begin approximately 12 to 18 months after the G-500s and entry-into-service is projected to be in 2019. Flexjet placed a firm order for six G-500s, plus 10 G-450s and six G-650s with options for 28 additional aircraft. Qatar Executive signed a memorandum of understanding covering a 20-aircraft mix of G-500 and G-650. The G-500 can fly 5,000 nm at Mach 0.85 or 3,800 nm at Mach 0.90. The G-600 is capable of travelling 6,200 nm at Mach 0.85 or 4,800 nm at Mach 0.90. Gulfstream said that the new Savannah production line to be used for the G-500 and G-600 models, will represent a “significant” advance over the G-650 production line. The G-650 line already uses 80 per cent fewer fasteners and 50 per cent fewer parts than the G-450/550. Dassault Launches New Customer Support Programme.  Dassault Falcon Jet launched a new Aircraft on Ground (AOG) response programme at NBAA. The customersupport programme will use two company-owned Falcon 900 as rapid-response aircraft, one based at Teterboro (NJ) Airport and the other at Paris Le Bourget. The Falcons will be used to transport Dassault Go Teams of technicians, parts and tools and if necessary, carry customers to their destinations while their aircraft is being serviced. Customers would be billed direct operating costs for these flights, which will be operated for the company by an independent operator under Part 135. In addition to the rapid response aircraft, Dassault is embarking on various other service-related improvements, including a new 77,000 sq ft MRO facility in Bordeaux, France; increasing the number of parts for “right-sizing” price reductions; significantly

increasing its spare parts inventories and hiring more service personnel. Dassault currently has a 98.5 per cent parts-availability rate. That is the percentage of the time a customer receives parts on the day they are needed and that in most cases parts pack and ship within 30 minutes to one hour of placement of the order. Beechcraft Bags Orders from Guardian Flight.  Beechcraft Corporation, a subsidiary of Textron Aviation Inc, a Textron Inc company, announced that Guardian Flight has secured six orders for the Hawker 400XPR upgrade package. First deliveries are planned for the first half of 2015. “As the largest air medevac provider in Alaska, this order demonstrates Guardian Flight’s confidence in the added range performance and operating value provided through the Hawker 400XPR upgrade,” said Brad Thress, Senior Vice President, Customer Service at Textron Aviation.

Hawker 400XPR

Guardian Flight’s upgraded Hawker XPR aircraft will feature Genuine Hawker Winglets and the increased power of the Williams International FJ44-4A-32 engines. Combined, these modifications are projected to realise a 33 per cent increase in range along with improvements in runway and hot and high performance. Beechcraft offers the exclusive factory-approved, engineered and supported upgrade package that significantly improves performance, operating cost and resale value of the Beechjet 400A/ Hawker 400XP. In addition to engines and winglets, the XPR can include upgrades to the aircraft’s exterior, cabin and avionics. Also during NBAA, Beechcraft announced winglet testing is complete and FAA certification. The Williams International FJ444A-32 engines will enable the Hawker 400XPR to climb directly to FL450 in only 19 minutes at max takeoff weight. Based on preliminary performance data, the 400XPR will fly 1,970 nautical miles with four passengers departing a 5,000-foot elevation airport at 30°Celsius. Certification of the new engines is pending. Cessna Aircraft presented its new Citation Latitude, one of four Latitudes currently flying in the company’s flight-test programme. The programme has now logged over 600 flight hours.   SP SP’S AIRBUZ • ISSUE 5 • 2014 • 31

Finally

A BRIGHT FUTURE There is now hope that with a dynamic and visionary government at the Centre, the Indian civil aviation industry will finally emerge from stagnation

PHOTOGRAPH: Airbus

T

he government of India embarked on liberalisation of the Indian economy beginning in the early 1990s, a step that was expected to benefit the Indian civil aviation industry too by way of reforms in a number of critical areas essentially through the involvement of the private sector. This hitherto had been taboo in a command economy founded on socialist principles. However, for one reason or another, the civil aviation industry since then has been literally struggling for survival. The initial resurgence in the airline industry in the wake of the bold move by the government in the 1990s that led to the emergence of airlines in the private sector, soon petered out. A number of start-up full service carriers downed shutters after a few years as they were unable to sustain operations in the hostile business environment prevailing in the country, the so-called economic liberalisation notwithstanding. Only two of the newly launched full service carriers, i.e. Jet Airways and Air Sahara that had the support of financially powerful business houses, managed to sustain operations despite accumulating humongous losses. Air Sahara too perished a few years later. The second resurgence in the airline industry began in 2003 with the entry of Air Deccan promoted by Captain G.R. Gopinath who ushered in the low-cost carrier concept that was characterised by no-frills service and fares affordable by the less affluent segments of society. Air Deccan was soon followed by the rise a number of other low-cost carriers, of which IndiGo Airlines, SpiceJet and GoAir continue to operate today. Some new entrants of the time such as Kingfisher Airlines that devoured Air Deccan and Paramount Airways could not survive in all likelihood, on account of their flawed business models. As of now, the surviving private carriers from those born during the second resurgence, continue to operate; but burdened with heavy cumulative losses, are in distress. Perhaps the only exception is IndiGo Airlines. The third resurgence in the Indian airline industry now underway has generated new hope for the industry especially with the entry of new carriers such as AirAsia India and Vistara, both as joint ventures between the house of the Tatas and Singapore Airlines, entrepreneurs of impeccable credentials and formidable reputation. This has been possible only due to the refreshing change in policy in the recent past wherein foreign carriers are now permitted to pick up stake in Indian carriers, something that was not permitted so far despite the reforms. The financially ailing Indian carriers are now seeking to join 32 • SP’S AIRBUZ • ISSUE 5 • 2014

G

www.spsairbuz.com

hands with foreign carriers, one such being the Jet-Etihad deal. Other carriers such as SpiceJet are seeking similar lifeline. Another startup, the Vijayawada-based regional airline Air Costa, has successfully completed 12 months of operation and fired with optimism about its future prospects in the industry, is drawing up plans for massive expansion and upgrade to the status of national carrier. As for the business and general aviation segment of the Indian civil aviation industry, it has undoubtedly been the most neglected. However, there are some encouraging steps in the offing. One of the proposals put forth by the Business Aircraft Owners’ Association (BAOA) for consideration by the Ministry of Civil Aviation (MoCA) is to enhance the involvement of non-scheduled aircraft operators in the effort to expand regional connectivity to un-served and underserved destinations. The BAOA has specifically asked the MoCA also to include helicopters in the fleet of commuter airlines as rotary- wing aircraft would be able to provide connectivity to areas that are remote and are not accessible particularly in Jammu and Kashmir, the North East region, Andaman and Nicobar Islands as well as Lakshadweep. Fixed-wing aircraft are unable to cover these regions adequately due to non-availability of runways, a limitation that does not affect helicopters that do not require elaborate infrastructure to operate from. The government is also planning to permit non-scheduled operators to publish schedules and operate flights as a scheduled commuter airline, provided they operate amongst the smaller cities and towns 87 of which have been identified by the MoCA. This step will not only boost regional aviation significantly enhancing passenger traffic to ultimately benefit the regular carriers, but would also help the commuter airlines to grow rapidly. The Directorate General of Civil Aviation (DGCA) is also in the process of drafting a comprehensive policy for the Business and General Aviation which may substantially reduce the time required for issue of licence to a prospective non-scheduled operator. Meanwhile, the government is moving forward decisively to replace the DGCA with an autonomous and empowered Civil Aviation Authority. There is now hope that with a dynamic and visionary government at the Centre, the Indian civil aviation industry will finally emerge from stagnation.  SP — B.K. Pandey