sp's aviation october 2008

AviationNews Flies. We Gather Intelligence. Every Month. From India.

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India Aviation 2008, recently held in Hyderabad, showcased a varied collection of wings. With some improvements on the administrative front, the show is set to go a long way towards addressing aspirations of the country’s civil aviation industry. PAGE 24

AN SP GUIDE PUBLICATION

WWW.SPSAVIATION.NET

BIG & SMALL

ISSUE 10 • 2008

BETWEEN PARTNERSHIPS PROMISED AND PARTNERSHIPS ACHIEVED,

THERE IS ONE IMPORTANT WORD: HOW.

In a world that continues to change dramatically, governments increasingly seek to accomplish their most

vital goals by working with advanced technology companies from around the globe. Building and sustaining

partnerships that achieve their objectives is a matter of how. And it is the how that makes all the difference.

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Table of Contents

Issue 10 • 2008 SP’S AVIATION 1

PUBLISHER AND EDITOR-IN-CHIEF Jayant Baranwal

ASSISTANT EDITORArundhati Das

SENIOR VISITING EDITORAir Marshal (Retd) V.K. Bhatia

SENIOR TECHNICAL GROUP EDITORSAir Marshal (Retd) B.K. PandeyLt General (Retd) Naresh Chand

SUB-EDITORBipasha Roy

CONTRIBUTORSIndia Air Marshal (Retd) P.K. Mehra, Air Marshal (Retd) N. Menon, Group Captain (Retd) A.K. Sachdev,Group Captain (Retd) Joseph NoronhaEurope Alan Peaford, Phil Nasskau, Rob CoppingerUSA & Canada Sushant Deb, LeRoy Cook, Lon Nordeen, Anil R. Pustam (West Indies)

CHAIRMAN & MANAGING DIRECTOR Jayant Baranwal

ADMIN & COORDINATIONBharti Sharma

Owned, published and printed by Jayant Baranwal, printed at Rave India and published at A-133, Arjun Nagar (Opposite Defence Colony), New Delhi 110 003, India. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, photocopying, recording, electronic, or otherwise without prior written permission of the Publishers.

ASSOCIATE ART DIRECTORS: Ratan Sonal, S. Devdas

© SP Guide Publications, 2008

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Military FACE TO FACE

9 ‘EUROJET WILL TRANSFER EJ200 TECHNOLOGY TO INDIA’

21 ‘US NAVY-FUNDED UPGRADES FOR SUPER HORNET’

REMINISCENCE

18 CODE WORD HUDIA

INDUSTRY

30 TYPHOON: A STEP FORWARD

30 HONEYWELL ON A HIGH

Civil BUSINESS AVIATION

10 ZIPPING THROUGH TURBULENCE

SHOW REVIEW

14 NBAA: BUSINESS AS ALWAYS

24 INDIA AVIATION 2008: BRILLIANT TAKE-OFF

Viewpoint INDO-US NUCLEAR DEAL

20 REALISTICALLY SPEAKING

Special Feature23 CELEBRATING 76 YEARS

Hall of Fame31 ARCHIE LEAGUE

BRILLIANT TAKE-OFF: Organised jointly by MOCA and FICCI, with Farnborough International for promotion abroad and the US as a partner, India Aviation 2008 attracted aviation companies the world over. One of the major attractions (seen here) was the ‘Green Giant’ Airbus A380.

NEXT ISSUE: Inside Embraer’s entrails...

Cover Photo: An Airbus A380 looms over

a Pushpak—the oldest training aircraft which is indigenous and still

flying—at India Aviation 2008 held in Hyderabad.

Photo Credit: Sanjay Thapar

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BUSINESS AS ALWAYS

ISSUE 10 • 2008

AviationSP’s

News Flies. We Gather Intelligence. Every Month. From India.

AN SP GUIDE PUBLICATIONRegular Departments2 A Word from Editor4 NewsWithViews - C-to-C Deal Settles BBJ Row - Reaching for the Moon

6 InFocus New Lease of Life

7 Forum Quantum of Solace

32 NewsDigest36 LastWord Missing: Sense & Sensibility

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SP's Avn 10 of 08 Cover.indd 1 11/13/08 4:44:54 PM

CORRIGENDUM—The first paragraph of the review of Air Marshal V.K. Verma’s book The Muse with Wings (SP’s Aviation 0908) was erroneously inserted. The error is regretted.

24

A Word from Editor

2 SP’S AVIATION Issue 10 • 2008 www.spsaviation.net

Betrayals, refusals and one stunning betrothal ren-dered this past month the quintessential Bollywood potboiler of the Indian civil aviation industry. Howls of protests greeted Jet Airways’ incredulous move

to dismiss 850 employees all in the span of 24 hours. The accompanying media frenzy—what with newspapers and news channels screaming the hurt and humiliation of the traumatised lot who took to the streets with a vehemence that seemed strangely at odds with their polished bearings—caught the airlines unawares. Ducking for cover, the manage-ment made the ‘conscionable’ decision to take them back.

Dust had barely settled down after the furore, when an-other development left industry pundits gaping with astonish-ment. Competitors and arch rivals, Jet Airways and Kingfisher formed what was touted as an operational alliance. The un-likely betrothal appeared to be the fallout of the government’s refusal to grant a $1 billion (Rs 5,000 crore) bailout on the ground that the taxpayer’s money could not be expended to cleaning up the mess that was largely the making of reckless business strategies adopted by private airlines.

Denied a lifeline, the two airlines, choking on staggering losses, did the next best thing: kiss to keep afloat. Financial expediency incredibly makes room for strange bedfellows. In-Focus, Forum and LastWord delve deep into the swirling un-dercurrents of debate, deliberation and dilemma facing private

airlines that cannot hope to survive without the prerequisite of sound professional management and financial prudence.

Business aviation, on the other hand, appears to be weath-ering the prevailing economic storm and managing to stay afloat simply by charging actual costs instead of cut-rate fares. While confusion about the true potential of business aviation persists, most operators are upbeat about this sunrise sector. The Centre for Asia Pacific Aviation expects that by 2020, as many as 1,500 corporate aircraft would be crisscrossing the Indian skies. Rising costs are unlikely to dampen the party.

Ample evidence of the upbeat business aviation industry was to be found at the 61st National Business Aviation Associa-tion (NBAA) meeting and convention. At the event, Gulfstream announced its latest aircraft, the G250. Not to be left behind, Hawker Beechcraft unwrapped the Hawker 450XP and the King Air 350i. Aside from new aircraft programme announce-ments, NBAA also played host to several ownership changes.

Back home, too, the mood was perceptibly buoyant among manufacturers of business jets participating in India Aviation 2008. Showcasing the attributes and strength of the civil avia-tion sector, the four-day air show was the first international exhibition of its kind in India. In all, there were around 200 exhibitors, large and small, from 18 different countries partici-pating in the show. The list of companies included leading civil aircraft manufacturers of the world. Turn the pages to catch all the action as also in-depth analyses of a range of significant issues defining civil and military operations.

Financial expediency makes room for strange bedfellows. So even as arch rivals Jet Airways and Kingfisher engineered a prickly embrace, the

former made the ‘conscionable’ decision to reinstate the 850

employees it had axed. All in all, a Bollywood potboiler.

IAF CHIEF AIR CHIEF MARSHAL F.H. MAJOR IS PRESENTED A COPY OF SP’S AVIATION SPECIAL ISSUE COMMEMORATING AIR FORCE DAY

Jayant Baranwal

Publisher & Editor-in-Chief

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C-TO-C DEAL SETTLES BBJ ROWMedia reports, especially the ones emanating from across the border in Pakistan, suggest India has yielded to US pressure to allow annual inspection by American technocrats of its Boeing BBJ VIP jets fitted with Special Protection Suits (SPS). The aircraft, with a range of 3,000 to 4,000 nautical miles, can deflect missile attacks and will be used to fly the country’s top dignitaries, including the President, the Prime Minister and senior Cabinet ministers. India has agreed to the jets’ inspection after six months of wrangling. Pentagon had stopped delivery of the aircraft to push for periodical inspection of the aircraft by US Air Force officials. The move apparently aimed to ensure that Indians do not tinker with the technology deployed in the SPS mounted on these aircraft.

VIEWS

Admittedly, there is a degree of truth in the media re-ports but certainly not the whole truth. Around May-June this year, barely a month before the first of the three BBJs were scheduled to arrive in India, the US

placed restrictions on the export of the systems, citing concerns over the safe custody of the SPS systems and the need for an-nual inspections by US officials to oversee security aspects of the SPS had not been jeopardised.

General opinion was that such a move would severely dent Washington’s image of a reliable and dependable sup-plier of high-tech equipment to India. The US precipitated crisis would not only jeopardise the much advertised and massive Medium Multi-Role Combat Air-craft deal worth over $10 billion (Rs 45,000 crore), for which US companies appear to be among the frontrunners, but also put to question the very sanctity of the ‘Strategic Partnership’ both countries are supposed to be so assiduously building upon.

In addition to the $180 mil-lion (Rs 735 crore) forked out for the three BBJs, India had specifically contracted for the aircraft to be fitted with the lat-est SPS, for which, an addition-al sum of $40 million (Rs 180 crore) was paid. As reported in SP’s Aviation issue 5-2008, the SPS in question is the state-of-the-art Northrop Grumman’s Large Aircraft Infrared Coun-termeasures (LAIRCM) system. While Washington insisted that physical inspection of systems was mandated by their laws and was needed to ensure that the technology did not fall into wrong hands, India considered the demand an affront to its sovereignty to allow physical inspections of the equipment af-ter it had entered service with the Indian Air Force (IAF).

Authorities were reportedly dismayed that while the US went all the way to endorse India as a responsible nation on the most vital nuclear front, including non-proliferation, it

was displaying signs of scepticism on a much smaller issue. India could not possibly sign a ‘compulsory’ agreement that would permit periodic physical verification of the systems by US inspectors.

Before the situation could snowball into an impasse, a via-media was resorted to by both sides. Ministry of Defence (MoD) sources in India revealed the matter has now been re-solved through a new end-user verification agreement. Earlier,

the SPS equipment was being procured through the Foreign Military Sale route that would have mandated physical in-spection of the systems due to US defence export laws. To work things around this com-pulsory clause, the systems are now being procured directly by the IAF from the US-based manufacturer, Northrop Grum-man. The novel ‘company-to-company’ agreement would do away with the need for physical verification. The US firm would take the responsibility for ‘cor-rect usage’ of the SPS systems which, in turn, instead of it tak-ing recourse to intrusive inspec-tions, would rely on written as-surances tendered by the IAF.

MoD officials do give cog-nizance to the US being extra sensitive regarding the trans-fer given that the LAIRCM sys-tem is new and has only been offered to the UK, Canada and, now, to India. A similar system is fitted on board the US President’s Air Force One. Therefore, there are genuine concerns on security which could be compromised if infor-

mation on the system is leaked. That all issues had been re-solved to mutual satisfaction was evident with the arrival of the first BBJ on the tarmac of Palam Air Force Base at Delhi and its somewhat muted but formal induction into the IAF’s ‘VIP Communication Squadron’ on August 4. The remaining two aircraft are slated to follow shortly. SP

— Air Marshal (Retd) V.K. Bhatia

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Chastisement by the Comptroller and Auditor General of India for procedural lapses in financial management notwithstanding, ISRO has done the nation proud by successfully launching Chandrayaan–1. However, it is

necessary to evaluate this achievement against the catalogue of milestones and failures of the other players in the exclusive club of space faring nations.

India’s maiden mission to the Moon comes four and a half decades after the launch of the first sounding rocket from Thumba and nearly three de-cades after the first indigenous-ly built Satellite Launch Vehicle successfully placed an experi-mental payload in orbit around the Earth. The Soviet Union, which was the first to launch a mission to the Moon, did so only two years after it placed its first satellite, the Sputnik, in Earth’s orbit in 1957. Even though NASA was lagging behind ini-tially, it sent a fly-by mission to the Moon in 1959, two months after USSR. However, NASA landed a man on the Moon within a decade, a feat that for some reason the USSR never attempted. Initial attempts at Moon missions were plagued by failure. Between 1959 and 1965, the US and USSR togeth-er recorded eight such cases. On January 26, 1962, NASA’s Ranger 3 missed the Moon by 36,793 km. Subsequently, on June 8, 1965, the Soviet Luna 6 mission experienced a similar failure, missing the Moon by as much as 1,60,000 km.

From Asia, Japan success-fully launched an unmanned mission to the Moon in September 2007. But China, India’s main rival in the space race, has been making rapid and im-pressive advancements. The first Chinese astronaut, or more appropriately Taikonaut, went into space in October 2003. The second manned mission with two Taikonauts was launched in October 2005. In October 2007, China sent an unmanned mis-sion to explore the surface of the Moon and again in Septem-

ber 2008, undertook a mission with three Taikonauts involving a space walk while in Earth orbit. With this latest feat, China is in a position to move ahead to establish a space laboratory scheduled for 2011. Next on the Chinese agenda is to under-take a mission to land a Taikonaut on the Moon by 2020.

India’s space programme has been relatively slower. Af-flicted by technology denial regimes and limited budgets, the programme has also faced problems with retention of qualified and experienced manpower. Even though India’s space pro-

gramme has in the past focused more on the improvement of the quality of life rather than pure scientific exploration of space for acquisition of knowledge, the intelligentsia tend to ques-tion the priorities laid out by the government. The fundamental objection is the staggering ex-penditure on space exploration when more than 300 million people languish in utter poverty and the benefits of such invest-ments to the underprivileged are hardly perceptible. Like India, China is also dependant largely on indigenous technol-ogy but is free of such prover-bial millstones. For the Chinese, attainment of objectives is the overriding consideration. Cost is of little consequence and de-cision making has never been an issue as the authority of the state is supreme. ISRO’s plan to put a man on the Moon by 2015, therefore, appears somewhat hypothetical and unrealistic.

As for Chandrayaan-1, so far ISRO has accomplished only marginally more than what it has been doing earlier. The dif-

ficult part would be to transfer the space vehicle from Earth orbit to the 1,000 km lunar orbit, progressively reducing it to 100 km. The real success of the mission can be assessed only after the array of instruments on-board begins to provide the necessary data. Raising a toast at this stage could, therefore, prove to be somewhat premature. SP

— Air Marshal (Retd) B.K. Pandey

REACHING FOR THE MOONOn the successful launch of Chandrayaan-1 on October 22, Prime Minister Dr Manmohan Singh hailed India’s space mission to the Moon as a significant step forward in the country’s space programme, describing it as a “historic milestone”. He congratulated all the scientists associated with this mission for the successful comple-tion of the launch. Indian Space Research Organisation (ISRO) Chairman Dr G. Madhavan Nair said all the launch vehicle systems performed satisfactorily and the spacecraft has been successfully placed in an orbit around the Earth. According to scientists at the Satish Dhawan Space Centre, it was a “normal” liftoff. A statement issued by the space department on October 31 said, “The health of the spacecraft is good and all the operations so far have been implemented as planned.”

VIEWS

InFocus AIRLINES ECONOMICS


The brilliant blue tapestry of clear sky cloaking Hy-derabad on October 15 offered sharp contrast to the mix of gloom and despair at the inauguration of the first India Aviation 2008 Exhibition, organised

to project and promote the country’s civil aviation sector. Next day, the papers carried a rather unusual photograph of the Chairmen of the two biggest private airlines, Jet Air-ways and Kingfisher. Seen riding together in an exhibition ground golf cart, the duo’s grim visage appeared stretched to accommodate pasty smiles evidently for the benefit of the paparazzi. What the camera could not capture, quite literally, was a begging bowl extended towards Civil Avia-tion Minister Praful Patel. The request was for an unprec-edented Rs 5,000 crore ($1 billion) government bail out to pull back private airlines from the brink of collapse.

Reeling under the com-bined onslaught of overca-pacities and rocketing crude oil prices, the global finan-cial meltdown proved to be the proverbial last straw that broke the camel’s back. Turn-ing all earlier prophesies on their heads, the growth in the air passenger traffic shifted gears in the reverse. The load factors dropped, creating a ‘Catch-22’ type of situation because in a bid to check in-creasing losses, the airlines resorted to increase in fares, which, coupled with mounting fuel surcharges, forced many a newly initiated air traveller back to the railways and oth-er means of ground transportation. Till recently, the high fares had affected just the smaller towns with first-time fly-ers from outside metros hopping back onto trains. But now the whole country appears to have become diffident about flying. Airports Authority of India’s figures compiled for the month of July for the country’s busiest airports—Mumbai, Delhi, Bengaluru, Hyderabad, Chennai and Kolkata—saw the number of flyers fall by roughly 16 per cent. The Di-rectorate General of Civil Aviation’s figures for September were even more depressing which show that the domestic travel has hit a five-year low of 27.19 lakh (2.719 million). Last year, during the same month, 33.38 lakh (3.38 million) people had taken the domestic flights.

Praful Patel was seen to be in an aggressive mood at the first Indian aviation expo but unfortunately could do little beyond venting his ire. The minister could not acquiesce to

the bailout request from private airlines and neither could he hope to influence the finance and oil ministries at the Centre and their counterparts in the states to cut taxes in order to curb soaring jet fuel prices. With no relief in sight, the private airlines— especially the bigger private carriers, such as Kingfisher and Jet Airways, which were incurring daily losses in excess of Rs 10 crore ($ 2 million) each—were floundering for a solution.

Two dramatic events convulsed the Indian civil avia-tion sector on the very first day of India Aviation 2008. First came the news that Jet Airways had laid off as many as 850 flight attendants in a single day—the largest in the history of Indian aviation. The second, and even more dramatic,

was the surprise revelation of an operational alliance forged between the two most fiercely competitive private airlines, Jet Airways and the Kingfisher, in what appeared to be a fight for survival.

In the former case, whether it was political pressure or Jet owner Naresh Goyal’s con-science pangs which led to the reversal of decision will in all probability never be known publicly. Perhaps Goyal, whose attitude towards firing employ-ees is rumoured to be much like a bull in a china shop, had been advised by his new found

friend and colleague, Kingfisher Chairman Dr Vijay Mallya, on the subtleties of managing layoffs in a more structured and less painful manner.

On the second count, the two competitors’ compul-sions to turn cohorts apparently stemmed from mounting costs in lieu of extra capacities build in line with predict-ed growth demands that went horribly wrong. Hence was engineered the operational alliance to rationalise, among other functions, flight scheduling, code-sharing and ground handling—practically the complete works save for equity sharing. Efforts will also focus on rationalising overseas op-erations in the manner that will see more cooperation and less competition.

Patel, for now, has given a clean chit to the alliance, but some questions persist: Will the new-found alliance lead to monopoly as the combine will command more than 50 per cent of the domestic market? Will it lead to the end of low-cost flying in India, and is it a precursor for an eventual merger? Forum delves into the debate. SP

Competitors-turned-cohorts Kingfisher and

Jet Airways compel public carriers to mull possible betrothals and even mergers to weather

the current crisis

New Lease of Life

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mAIRLINES ECONOMICS


Boom to gloom... to doom? Assuredly not if re-cent overtures to rectify and rejuvenate tot-tering Indian airlines are any indication. Buf-feted by the global hot winds of recession, the Indian aviation sector is unlikely to witness western style financial meltdowns, vouch the

industry’s top brass. “The Indian aviation industry will come out stronger, because we have learnt several lessons in this period. This will also lead to reduction of flab, particularly at the operations end,” Air India Chairman and Managing Director Raghu Menon recently observed. Echoing the opti-mism, Vice President Airbus Industrie Kiran Rao expressed confidence that the Indian market was very resilient and would definitely bounce back. “It has seen the impact of two Gulf wars, SAARC epidemic and 9/11 terror attacks on the twin WTC towers. Everyone thought this will be the end, but it was only a blip. During the current crisis, too, aviation industry will emerge stronger,” he said.

So, how is the civil aviation sector shaping up to take on present and future challenges? In retrospect, the recent Goyal-Mallya (GM) alliance may prove consolidation to be the real mantra for survival in the highly volatile aviation market. For instance, InterGlobe Enterprises-owned IndiGo airline is reported to be in the process of a 50/50 merger with Shivraj Airways Charters Ltd even as SpiceJet in ap-parently in cahoots with US billionaire Wilbur Ross for a

$80 million (Rs 380 crore) investment as a starter. GoAir and Paramount are also said to be exploring an alliance strategy. Interestingly, four major private airlines first com-bined into two—Jet Airways-Air Sahara and Kingfisher-Air Deccan—and subsequently, less than two years later, have merged into one entity (at least operationally). Almost simul-taneously, the two national carriers, Air India and the Indian Airlines, along with their subsidiaries Air India Express and Alliance Air, became one entity under a single brand name, Air India. For the remaining smaller players also consoli-dation may be the only key to survival. In the future, three major forces could define the Indian airlines industry—Air India and the GM-combine competing in all segments of in-ternational and domestic businesses even as a third com-bined force takes them on in the domestic low-cost model.

For now, the sudden hike in oil prices and the global fi-nancial meltdown could not have been more ill-timed, com-ing as they did at a juncture when large-scale investments were being made in the aviation sector, both for develop-ment of airport infrastructure as well as expansion of airline fleets. Impact in terms of human costs became most glaring when Jet Airways retrenched nearly 2,000 of its staff under probation, 850 of them in a single day. Overnight, serious issues of reckless expansion plans, inept management and cut-throat competition came under the spotlight. Air India, being a Public Sector Undertaking and, therefore, a differ-

Just when the Indian aviation sector seemed to be soaring, global financial calamity and surging crude oil prices conspired to clip its wings. Now, even as airlines scramble to find ways to mitigate the crisis, industry

pundits sound a positive note.

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ent kettle of fish, could hope to be dropped a lifeline by the Indian exchequer. But no such largesse was available to the private airlines. Not surprisingly, the Rs 5,000 crore ($1 billion) bailout package was denied to them as the govern-ment reasoned it could not use taxpayers’ money to rescue airlines from consequences of their own reckless business strategies. While Air India preened, private airlines were left to seek their own devices to deal with the crisis. And deal they did with astonishing alacrity. Titans of the private civil aviation sector and arch-rivals in the airline industry Naresh Goyal and Dr Vijay Mallya, heads of Jet Airways and King-fisher, respectively, met to forge an alliance. Unthinkable a few months ago, the operational embrace was necessitated by daily losses in excess of $2 million (Rs 9.5 crore) each airline was being forced to swallow, threatening asphyxia-tion in the long run.

Opinions differ on whether the alliance would benefit fliers as much as it would the airlines. “The alliance rep-resents a new industrial model for aviation in India,” Goyal said. “There would be cost savings and opportunities to in-

crease revenues.” World over, the founder Chairman of Jet Airways further pointed out, airlines had formed alliances to become more efficient, improve revenues and provide seamless travel opportunities. Kingfisher Chairman Mallya is in total agreement: “The two airlines realised that better understanding of supply and demand in this capital and la-bour intensive industry was the key to profit and enhancing shareholder value.” The operational alliance essentially en-tails code-sharing on both domestic and international flights (subject to approvals), joint fuel management to reduce ex-penses, common ground handling, cross selling of flight in-ventories, cross utilisation of crew on similar aircraft types and, reciprocity in each other’s frequent flier programmes. The combined network will deploy 189 aircraft and offer 927 domestic and 82 international flights daily.

Alliances of such nature are dismissed by some industry observers as easier announced than implemented. “Allianc-es are complicated to implement and require a lot of work-ing. The two airlines operate different variety of aircraft so they will not be able to utilise the services of a pilot flying an Airbus aircraft of Kingfisher to operate a Boeing aircraft of Jet Airways and vice versa,” said a senior official of an airline. True, but one must not overlook the fact that both

airlines use a large number of identical ATR 72 aircraft for regional domestic operations and also have commonality in Airbus A330 class of aircraft for international operations. In the remaining cases, the same model could be used as is be-ing done by the National Aviation Company Limited (NACL). In the NACL-combine, Indian largely operates Airbus and Air India, Boeing variants.

Financial expediency can make room for strange bedfel-lows. In this case, too, it may propel them to find workable solutions. The alliance, undoubtedly, would help the two airlines to rationalise costs and give sufficient bargaining power with suppliers. But will it also give them more elbow room to dictate prices, as the two together will hold about 60 per cent of the market share? In other words, will it lead to a monopoly like situation? While some aviation analysts say as much, the Aviation Minister doesn’t agree. Patel feels there are sufficient safeguards in the system and enough operators in the field to prevent a monopolistic environment from developing. Supporting Patel’s statement, Menon as-serts that the national carriers will give healthy competition

to the GM-combine. At the same time, he feels the alliance may actually lead to reduction in competition. “There are a number of routes and number of airlines. All the airlines will be evenly poised in the market,” asserts the Chairman and Managing Director of Air India.

On the face of it, low-cost airlines do not seem to be per-turbed by the alliance. According to IndiGo President, Aditya Ghosh: “The alliance does not have any major impact on us so long as we keep our costs low and fares affordable.” Kishore Gupta of SpiceJet is more cautious: “It’s a bit too early to comment. We have to see how it will impact low-cost airlines and then take a call on if we need to forge such an alliance. In one way, it could lead to curtailment of capac-ity and hike in fares.”

Setting aside the imponderables, pragmatic consolida-tion and efficient management could imbue a new lease of life in the airline industry even as global oil prices settle down to realistic levels. What, however, is needed from the Government of India is uniform aviation fuel tax policy and rationalisation of ATF prices to bring them at par with in-ternational norms—a bailout of sorts for airlines to bounce back stronger than ever. SP

— Air Marshal (Retd) V.K. Bhatia

“IT (THE AVIATION INDUSTRY) HAS SEEN THE IMPACT OF TWO GULF WARS, SAARC EPIDEMIC AND 9/11 TERROR ATTACKS ON THE TWIN WTC TOWERS. EVERYONE THOUGHT THIS WILL BE THE END, BUT IT WAS ONLY A BLIP. DURING THE CURRENT CRISIS, TOO, AVIATION INDUSTRY WILL EMERGE STRONGER.”—KIRAN RAO, VICE PRESIDENT, AIRBUS INDUSTRIE

“THE INDIAN AVIATION INDUSTRY WILL COME OUT STRONGER, BECAUSE WE HAVE LEARNT

SEVERAL LESSONS IN THIS PERIOD. THIS WILL ALSO LEAD TO REDUCTION

OF FLAB, PARTICULARLY AT THE OPERATIONS END.”—RAGHU MENON,

CHAIRMAN & MANAGING DIRECTOR, AIR INDIA

“THE TWO AIRLINES (KINGFISHER-JET AIRWAYS) REALISED THAT BETTER UNDERSTANDING OF SUPPLY AND DEMAND IN THIS CAPITAL AND LABOUR INTENSIVE INDUSTRY WAS THE KEY TO PROFIT AND ENHANCING SHAREHOLDER VALUE.”—DR VIJAY MALLYA, CHAIRMAN, KINGFISHER

“THE (KINGFISHER-JET AIRWAYS) ALLIANCE REPRESENTS A NEW INDUSTRIAL MODEL FOR

AVIATION IN INDIA. THERE WOULD BE COST SAVINGS AND OPPORTUNITIES TO

INCREASE REVENUES.”—NARESH GOYAL,

CHAIRMAN, JET AIRWAYS


MILITARY FACE TO FACE

SP’s: Trace the history of your company since inception.Eurojet: Three companies from the Eurojet consortia were already sharing the RB199 engine development and production for the Tornado aircraft. The consortia were extended by Spain (ITP) when the EJ200 for Typhoon was developed. Eurojet has a contract for over 1,500 engines.

SP’s: At what point did Eu-rojet enter the race to pro-vide the engine for India’s Light Combat Aircraft, Te-jas? Eurojet: Post 2006 Banga-lore Airshow, the first ac-tivities have begun. EJ200 was the benchmark in this class of engines at the Aero India Seminar preceding the Airshow.

SP’s: To what extent would the airframe of the LCA have to be modified to ac-commodate the EJ200?Eurojet: The LCA only needs minor modifications to fit the EJ200 engine. The changes are in the area of negligible.

SP’s: What are the features of the EJ200 that are unique or special as compared to other engines in this class?Eurojet: High thrust-to-weight ratio, simple technology, low lifecycle cost and high operational availability are some of its unique attributes.

SP’s: Will the selection of the engine for the LCA in any way influence the future MMRCA deal?Eurojet: We don’t think so. Even logic tries to suggest that there are interesting synergies coming up, but these pro-grammes sometimes have individual rules.

SP’s: Would Eurojet be prepared for full transfer of tech-nology for manufac-ture in India?Eurojet: Yes, Eurojet is prepared to trans-fer the EJ200 tech-nology to India to the extent agreed on.

SP’s: Has Eurojet con-sidered collaboration with Gas Turbine Re-search Establishment for the development of Kaveri or in its place an altogether new engine?Eurojet: We are open for discussions on this issue.

SP’s: What is the fuel efficiency rating of the EJ200 as this factor has assumed critical importance on account of the unprecedented rise in fuel prices.Eurojet: The specific fuel consumption on this engine is very low compared to its performance. But as is always the case, fuel consumption in combat aircraft is mission dependent. SP

‘Eurojet will transfer EJ200 technology to India’

Talking to SP’s, Eurojet’s team comprising Vice President

Sales Paul Herrmann, Executive PR and Political Affairs Jessica

Schulte and Director Engineering EJ200 LCA Wolfgang Sterr

outlines the EJ200’s bid to power

India’s LCA Tejas

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CIVIL BUSINESS AVIATION

A CHILLY WIND IS BLOW-ING ACROSS THE INDIAN ECONOMY and the aviation industry is just about the worst hit. With all domestic

carriers notching up huge losses there seems to be no pros-pect of the much awaited turnaround any time soon. On the contrary, travellers’ associations regularly complain about the sharp and frequent increase of ticket prices. Yet avia-tion experts believe current airfares are still around 20 per cent below cost. According to the International Air Trans-port Association, ‘perfect storm’ conditions of high prices and falling demand are likely to prevail for a while. Vari-ous overheads such as fuel, salaries, maintenance, ground handling charges and catering costs, are rising. Make no mistake, the current operating cost structure is unsustain-able. The Indian airline industry is in serious trouble and finding a way out is likely to be a daunting task.

BUSINESS AVIATION IN INDIA If some of the scheduled airlines are teetering on the verge of collapse in this adverse economic environment, how is the business aviation segment faring?

In India, strangely enough, there is no clear division be-tween scheduled commercial aviation and general aviation, which includes business and private aviation. It is widely acknowledged that general aviation is a badly neglected sec-tor. Despite the completely different operating paradigms, it does not even have separate rules and regulations. In coun-tries with developed aviation sectors, Fixed Base Operators or Fixed Base of Operations servicing centres are taken for granted. Here they are non-existent. Similarly, general avia-tion terminals and heliports are vital for the sector to grow. Instead, business and private aircraft are forced to compete with scheduled commercial flights. When it comes to main-tenance facilities, business aviation is once again badly off. PH

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By Group Captain (Retd) Joseph Noronha, Goa

Zipping through turbulenceConstrained by red tape and high taxes, business aviation

in India is no cakewalk. However, most operators are optimistic. This, after all, is a sunrise sector.



The very first dedicated terminal for business and private aircraft is expected in Delhi, perhaps by 2009-end.

SPELLING OUT THE IMPEDIMENTSThere is considerable confusion about the true potential of business aviation. The recent fracas over ‘evasion’ of cus-toms duty on import of aircraft is a telling example. The Union Budget for 2007-2008 imposed duties amounting to around 25 per cent on all aircraft imports. However, within a couple of months, due to hectic lobbying by the industry, non-scheduled operators were exempted. In June this year, the customs authorities began to probe allegations of com-panies and individuals posing as non-scheduled operators to purchase aircraft for personal use without paying taxes. While a few aircraft were seized and heavy fines imposed, around 200 similar cases may be under investigation. The situation calls for an urgent and reasonable solution. If pos-sible, all taxes on small aircraft should be waived. “Foul!” the socialists will cry, but the lasting benefits to the economy far outweigh the government’s short-term profit through import taxes. Surely, after two decades of economic liberali-sation this is one lesson that should have been learned.

The price of ATF has come down to less than half its peak in July 2008 and may well stay at relatively comfortable lev-els at least for some time. However, high taxes mean that the average price of ATF in India is 60 to 70 per cent more than in Europe. Besides, the plunging rupee has sharply reduced the real benefit of the fuel price drop. The weak rupee also has a significant impact on costs in general since up to a third of the total operating cost could depend on the value of the dollar. For instance, aircraft ownership costs including rentals for leased aircraft and interest on aircraft purchased have risen significantly ever since the dollar began appreci-ating. The cost of spares, maintenance and training abroad

has also shot up correspondingly.

Rising wage bill of staff is also straining business aviation bottom-lines. The highest paid individuals are usually the ones most conscious of their ‘rights’ and the most likely to demand pay hikes when inflation begins to pinch. However, the re-cent attempts by the two leading private airlines, Jet

Airways and Kingfisher to reduce manpower costs have sent shock waves across the in-dustry and a clear signal that the inordinately high salaries may no longer be affordable and that a substantial reduction in salaries would be necessary if airlines were to survive.

While considering the impact of rising costs on business aviation, it is important

to make a clear distinction between charter and fractional ownership operators on the one hand and private or lux-ury aircraft owned by business and corporate houses on the other. It is unlikely that the Tatas or Ambanis would be greatly fazed if the cost of aviation fuel was to double or pi-lots were to demand a substantial fee hike. But they do chafe when the aircraft they are travelling in has to wait in the ‘general’ queue for taxi, take off and landing. After all, time is money. While business aviation infrastructure is slowly being established in the large cities, most airports remain unprepared to deal efficiently with business aircraft. Busi-ness passengers are generally required to proceed through customs, security and immigration along with regular airline passengers. Corporate aircraft are not permitted to operate at the metros during peak hours and have to wait intermi-nably before being permitted to taxi out and take off. Worse still, despite approved flight plans, corporate aircraft may be kept circling over a busy airfield before being permitted to land. Where then, is the preferential treatment that busi-nesses feel entitled to by virtue of paying substantially more than regular passengers?

On the other hand, charter and fractional ownership op-erators are as cost conscious as scheduled airlines. According to Ernst & Young, there are around 32 air charter companies in India. However, most are small operators with just one or two aircraft. Fractional aircraft ownership is still a fairly nov-el concept and will take some time to catch on. Club One Air, a Delhi-based private jet company, is the only Indian player with a fractional ownership model established in the market. Recently, BJets commenced dedicated fractional and block charter services. Charter rates are comparatively higher in India than in the West. There are noticeable signs of demand slowing down as most charter operators have already raised rates a couple of times this year. Enterprises which cannot

The Indian market is potentially bigger than that of China. Already it has twice the number of billionaires and approximately one lakh millionaires.



afford their own aircraft but would like to gain the increased productivity that business aviation has to offer, would natu-rally be the most cost-conscious. They would definitely re-think if the cost of charters and fractional ownership were to rise unconscionably. It might seem that someone who can afford to charter a helicopter is unlikely to stop using it if costs go up by, say, 10 to 15 per cent. But eventually price rise would start hitting demand and the ordinary Indian traveller, notorious for putting up with a bone-jarring auto-rickshaw ride rather than paying more for an air-conditioned cab, is likely to be the first to flee high charter rates.

SCOPE FOR BUSINESS AVIATIONFor business aviation to prosper there needs to be a booming economy and a growing number of rich individuals and companies. These conditions prevail in India and the current economic slowdown is unlikely to change anything. The Indian market is po-tentially bigger than that of China. Already it has twice the number of billionaires and approximately one lakh millionaires. Cur-rently, there are almost 200 business and private aircraft in India and the Directorate General of Civil Aviation reportedly has an-other 300 applications for import of aircraft pending. Cynics would argue that this may be due to the six-month processing time taken by the DGCA for approval.

Still, annual growth is variously estimated to be between 30 and 40 per cent. Manufacturers claim India is fast becom-ing one of the key Asian markets for both business jets and light aircraft. The country’s poor road infrastructure seems to have persuaded several companies and individuals to place orders for business aircraft. Last year, 30 business jets were delivered and another 45 are scheduled for delivery by the end of 2008.

Corporate flying for big Indian businesses is no longer looked upon as a luxury, rather as a legitimate expense to improve productivity. An encouraging characteristic is that the current boom in the sector is not limited to large business houses alone. Dynamic enterprises of all sizes, in all sectors

have come to appreciate the efficiency, flexibility and other benefits that avia-tion provides. In future, business avia-tion in India may be spurred on mainly by the hundreds of such globally-ori-ented new businesses coming up.

VLJS IN BUSINESS AVIATIONSome operators even hope that the af-fluent middle class will tire of the traffic snarls, interminable delays and shoddy service of the scheduled airlines and turn to charters for the convenience and privacy they offer. India’s upper middle class is swelling and even if less than one per cent were to occasionally

A four-seater VLJ would be easier to

fill with passengers and could offer a

Mumbai-Delhi flight for an average per seat cost

which is only slightly higher than single

business class seat on a scheduled airline

Citation Emerging Markets ad for SP’STrim: 40.6 cm x 12.5 cm • Bleed: 41.6 cm x 13.5 cm • Live: 38 cm x 11.5 cmFile: CD-ROM, HR PDF with 1 digital proof

Some Citation business jets are so perfectly suited to doing business in India,

it’s as if they were created specifically for that purpose. Here’s why: Every

Citation is based on what customers tell us they need. Those customers

come from all over the world, but they all have three things in common:

They are poised on the brink of a major breakthrough in the growth of their

business. They are seeing opportunities like never before. And they are

looking for the undeniably best way to seize them. Their answer can be your

answer – the best-selling business jets and propeller aircraft in the world. For

a free, no-obligation analysis of what a Citation business jet can do for your

company call Mike McGreevy at 971.4.295.4822 or visit Citation.Cessna.com.

It’s as if we read the minds ofIndia’s business leaders. In many ways, we did.

C e s s n a A i r c r a f t

S u r e T h i n g ®

gs-EmMark_SPs.indd 1 11/13/07 3:26:24 PM



succumb to the lure of charter it would still add up to an impressive number who would certainly be enthused by the advent of the Very Light Jets (VLJs).

Is the VLJ tailor-made for the Indian market? Some ex-perts think so. This new family of four to six seat planes will soon be available starting at around $2 million (Rs 10 crore). Standard business jets cost perhaps three to four times as much. A four-seater VLJ would be easier to fill with passengers and could offer a Mumbai-Delhi flight for an av-erage per seat cost which is only slightly higher than single business class seat on a scheduled airline.

At present, the metros are getting the largest slice of the business aviation cake, which has added to congestion and hassles. This apart, the very purpose of buying a business avi-ation aircraft to save time has been defeated. It is only when the charter providers trickle down to the Tier 2 and Tier 3 cities that business aviation will really take off. The govern-ment’s ongoing effort to revamp and upgrade 35 non-metro airports is laudable and should provide the much needed im-petus to business aviation. There are ambitious plans for new airports in major cities but these could take years to become operational. In the interim, numerous unused airstrips could be converted into business aviation hubs which would be far less expensive than Greenfield facilities.

IN CONCLUSIONBusiness aviation in India is no cakewalk. Constrained by red tape and high taxes, it is faced by government restric-tions which make it difficult for private operators to obtain

flying and landing permits. Access to airports is difficult, the air space is heavily congested and parking bays in big air-ports like Mumbai and Delhi are not available for love or money. Shortage of technical staff and experienced pilots adds to the problem, and ‘poaching’ is probably rampant just like amongst the scheduled airlines. However, most operators are optimistic. This is, after all, a sunrise sector. Sheer economic necessity will inevitably propel the industry on the high growth path. Everyone, from the government, operators and users, needs to get used to the unique char-acteristics of business aviation—characteristics that keep it viable even through the current turbulent times.

Business aviation appears to be weathering the prevail-ing economic storm and managing to stay afloat simply by charging actual costs instead of cut-rate fares. It boils down to this. Is a business aircraft an expensive toy, a luxury which can easily be dispensed with to cut costs? Or is it an essential means to increase productivity by saving pre-cious travel time, expense being relatively unimportant? For corporate decision makers in India the latter seems to hold good. Although the airline industry in India has fallen on hard times, the same is not true of business aviation. The increasing global ambitions of many Indian companies plus a surge in the numbers of millionaires and billionaires mean that the pool of potential buyers and users of business air-craft is set to swell dramatically. The Centre for Asia Pacific Aviation expects that by 2020, as many as 1,500 corporate aircraft would be crisscrossing the Indian skies. Rising costs are unlikely to dampen the party. SP

Citation Emerging Markets ad for SP’STrim: 40.6 cm x 12.5 cm • Bleed: 41.6 cm x 13.5 cm • Live: 38 cm x 11.5 cmFile: CD-ROM, HR PDF with 1 digital proof

Some Citation business jets are so perfectly suited to doing business in India,

it’s as if they were created specifically for that purpose. Here’s why: Every

Citation is based on what customers tell us they need. Those customers

come from all over the world, but they all have three things in common:

They are poised on the brink of a major breakthrough in the growth of their

business. They are seeing opportunities like never before. And they are

looking for the undeniably best way to seize them. Their answer can be your

answer – the best-selling business jets and propeller aircraft in the world. For

a free, no-obligation analysis of what a Citation business jet can do for your

company call Mike McGreevy at 971.4.295.4822 or visit Citation.Cessna.com.

It’s as if we read the minds ofIndia’s business leaders. In many ways, we did.

C e s s n a A i r c r a f t

S u r e T h i n g ®

gs-EmMark_SPs.indd 1 11/13/07 3:26:24 PM


CIVIL SHOW REVIEW

As if the industry needed proof of that it was facing a period of unremitting growth, Gulfstream announced its lat-est aircraft, an upgraded G200 dubbed the G250. Not to be left behind, Hawk-er Beechcraft unwrapped the Hawker

400XP successor, the Hawker 450XP, as well as an improved version of the venerable King Air 350, the King Air 350i.

GULFSTREAM: G250Based on the $22 million (Rs 105 crore) G200, accord-ing to Gulfstream, the $24 million (Rs 115 crore) G250 will deliver the largest cabin and the longest range at the fastest speed in the super mid-size segment. The first flight of the G250 is expected in the latter half of 2009, says Gulfstream. While certification and entry into service are slated for 2011.

The new super mid-size jet will feature twin Hon-eywell HTF7250G turbofan engines producing 7,445 lb of thrust each, and features a new transonic wing design optimised for high speed cruise and take off performance; Gulfstream claims it will be capable of taking off in 5,000 ft or less with margins. The en-gine is based on the HTF7000 engine that powers the Bombardier Challenger 300, also a super mid-size of-fering. Gulfstream says it will let the market determine whether the new twinjet will replace the G200. PH

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Orlando’s Orange County Convention Center opened

its doors to the 61st National Business Aviation Association meeting and convention from October 6 to 8. While financial

markets and banks may be in disarray, the world’s business aviation economy seem to

be unaffected. PHIL NASSKAU reports on the key highlights of this year’s NBAA.

Business As Always

PHENOMENAL: EMBRAER’S PHENOM 300 CONTINUES TO BE ATTRACTIVE IN THE LIGHT JET CATEGORY, WITH THE BEST COMBINATION OF COMFORT, PERFORMANCE, CABIN SPACE AND BAGGAGE VOLUME

CIVIL SHOW REVIEW


Specifications revel a climb time to 41,000 ft of less than 20 minutes while maximum cruising altitude is 45,000 ft. At 45,000 ft, the cabin altitude—at 7,000 ft—is 1,000 ft lower than that of the G200, while at 41,000 ft, it will be 6,000 ft. Add in a top cruise speed of M.85 and the manufacturer says the aircraft will be capable of flying non-stop with four pas-sengers from New York to Paris or London to Dubai at M.82 against 85 per cent annual winds with NBAA reserves.

As with the G150 and the present G200, Israel Aerospace Industries (IAI) will assemble the aircraft and fly it ‘green’ to Gulfstream’s Dallas, Texas, US facility for completion with a choice of three floor plans seating eight, nine or 10 passen-

gers. IAI will also build the empennage and landing gear, while Spirit Aerosys-tems will build the new Gulfstream-en-gineered wing, a key enabler for the aircraft’s superior payload versus range performance, compared to the G200 and some of its other competitors.

Rockwell Collins will provide the in-tegrated avionics for the PlaneView250 flight deck that has three 15.3 inch dis-plays. These displays are able to show multiple formats for charts, navigation, synoptic and flight planning data. Pilots will access the dis-plays using Gulfstream’s trademark side-console mounted hand controllers. Options include the company’s EVS II enhanced vision system as well as Rockwell Collins’ LCD head-up display and synthetic vision systems. The G250 features a traditional control column with fly-by-wire lim-ited to rudders and spoilers.

As with other new Gulfstream aircraft, the user com-munity provided the seeds for the new design. “Our cus-tomers played a definitive role in designing this business jet by participating in our advance technology customer advisory team,” says Joe Lombardo, Gulfstream’s Presi-dent. “As a result, we are confident they’ll appreciate the G250’s state-of-the-art technology, superior performance and enhanced styling.”

HAWKER BEECHCRAFT: 450XP, KING AIR 350IHawker Beechcraft unravelled details of its new Hawker 450XP.

President Commercial Sales Brad Hatt says: “The 450XP was really driven by our customers who wanted to see the aircraft upgraded in regard to avionics.” As such, the Pro Line 4 is re-placed with Rockwell Collins’ Pro Line 21 and a new pair of Pratt & Whitney PW535Ds replaces the JT15D-5Rs.

The new model is selling at $7.695 million (Rs 37 crore) and should be delivered in mid-2010. And the new engines give more thrust per pound of fuel than the current JT15s. They increase range and allow better performance at high altitudes and hot temperatures. “The big difference in the engine is new technology which gives you better specific fuel consumption, which is about an 8 per cent improvement,” explains Hatt. “That, coupled with the engine being flat-rated to plus 20 deg C, gives it much better performance.” He says that in range there is a notable benefit because the engine can run 12 degrees hotter. “That allows you to oper-ate the engine on a higher temperature from take-off in hot environments, as well as in time to climb, so you can get up to altitude quicker.”

Hatt explains that the range improvement when flying out of Teterboro is 140 miles and can be as much as 500 miles when flying out of Denver. But it isn’t just the avion-ics and improved engines that make the 450XP. Inside the

cabin, new seats blend with newly sculpted walls and ledging, which house Rockwell Collins’ Venue CMS infotainment system. Each passenger can control their own entertainment, and environment, while LED lights surround up to nine seats. “With the King Air 350i we’re redesigning the back end of the airplane,” explains Hatt. The new cabin shuts out four more decibels of noise and offers flex-ible seating plans. The first King Air

350i will be delivered in autumn 2009—in theory a year after the cabin mock-up was unveiled at NBAA.

This twin turboprop now costs $6.52 million (Rs 30 crore), but Hatt says the atmosphere inside will be like that of a jet costing millions more, showing style and quality cou-pled with versatility. “It’s a very modular design with regards

SPREADING THE CHEER: (TOP LEFT) THE FEDERAL AVIATION ADMINISTRATION’S ACTING ADMINISTRATOR, BOBBY STURGELL, CUTS THE RIBBON TO OFFICIALLY DECLARE THE SHOW OPEN; (TOP RIGHT) VETERAN POLITICAL COUPLE MARY MATALIN AND JAMES CARVILLE SPEAK AT THE OPENING GENERAL SESSION

CIVIL SHOW REVIEW


to the cabinetry,” he explains. A variety of arrangements are possible for the seating, too. “You can take all four of the aft club seating out,” he says. This new ‘FlexCabin’ concept lets the cabin be reconfigured between flights, with ottomans replacing those seats or leaving empty space for storage or stretching out. “That basically allows you to have a lounge back there; two of them actually. You’re able to recline and have a foot rest and look at a large 15-inch display that is using Bluetooth technology that just gives phenomenal clar-ity,” describes Hatt.

Infotainment is available to each of the eight cabin seats, with access to the Rockwell Collins Air show service and interconnectivity for devices like iPods. Shutters are also rendered obsolete here, with electric shades dimming the windows at the touch of a button rather than the more complicated electrochromatic shades that are likely to lead the way forward. An 11th person can ride buckled onto the closed seat of what Hatt calls “a fully legal belted potty. In that back galley, for the first time ever in a King Air, you have a full unitisation lavatory, with running water and mirrors and vanity, as well as a storage area”.

Comfort design also extends to noise control. “A lot of it is just in passive designs that we’ve learned over the years—how to package soundproofing material as well as the type of material you use as well as the overall design layout,” says Hatt. “It’s not in any one way we do it, but the overall accom-plishment is a 4dB improvement, which is really significant.”

BOMBARDIER: LEARJET 85Bombardier took the opportunity to unveil its cabin mock-up of the Learjet 85 at NBAA’s static display at Orlando Executive Airport. “The Learjet 85 aircraft’s cabin features more volume and comfort than any existing midsize offer-ing and now our customer can experience it first hand,” said Bombardier Business Aircraft President Steve Ridolfi at the unveiling. “Development of the Learjet 85 aircraft is progressing well as we enter the next phase of this exciting new programme.”

Bombardier’s aim is to provide a larger, more comfort-able cabin than any existing midsize aircraft, the Learjet

85 aircraft’s 665ft3 (18.8m3) cabin is the largest Learjet air-craft cabin ever—offering eight passengers a stand-up environ-ment built to ensure superior productivity. A key element of the aircraft’s cabin is its large windows, measuring approxi-mately 12x16 inches (30.5x40.6 cm), maximising the amount of natural light into the aircraft as well as passenger viewing capa-bility. The standard double club configuration floor plan fea-tures 30 inches (76.2 cm) pitch between the seats, a full service galley, full lavatory and three large storage closets. All cabin seats are fully berthable with the capability to deploy four at any time for optimum comfort. And underneath the seats are specially designed laptop draw-ers. Bombardier says that one of the other reasons for the de-ceptive space is the cabin’s use of only 90 sq ft of veneers as op-

posed to the Learjet 60’s 400 sq ft.

EMBRAER: PHENOM 100/300While Embraer’s Phenom duo made their first appearances at a show outside of Brazil, the Phenom 100 was expected to certify at NBAA, but the company says it is on track for customer deliveries by the end of the year.

AWESOME PRESENCE: CESSNA AS ALWAYS EXHIBITED ITS VAST RANGE OF EXHIBITS,

BOTH INDOOR (SEEN HERE) AND OUTDOOR

“THE 450XP WAS REALLY DRIVEN BY OUR CUSTOMERS WHO WANTED TO SEE THE AIRCRAFT UPGRADED IN REGARD TO AVIONICS. THE BIG DIFFERENCE IN THE ENGINE IS NEW TECHNOLOGY WHICH GIVES BETTER SPECIFIC FUEL CONSUMPTION, WHICH IS ABOUT AN 8 PER CENT IMPROVEMENT.”—BRAD HATT, PRESIDENT, COMMERCIAL SALES, HAWKER BEECHCRAFT

“THE LEARJET 85 AIRCRAFT’S CABIN FEATURES MORE VOLUME AND COMFORT THAN ANY EXISTING MIDSIZE OFFERING AND NOW OUR CUSTOMER CAN EXPERIENCE IT FIRST HAND. DEVELOPMENT OF THE LEARJET 85 AIRCRAFT IS PROGRESSING WELL AS WE ENTER THE NEXT PHASE OF THIS EXCITING NEW PROGRAMME.”—STEVE RIDOLFI, PRESIDENT, BOMBARDIER BUSINESS AIRCRAFT

“OUR CUSTOMERS PLAYED A DEFINITIVE ROLE IN DESIGNING THIS BUSINESS JET BY PARTICIPATING IN OUR ADVANCE TECHNOLOGY CUSTOMER ADVISORY TEAM. AS A RESULT, WE ARE CONFIDENT THEY’LL APPRECIATE THE G250’S STATE-OF-THE-ART TECHNOLOGY, SUPERIOR PERFORMANCE AND ENHANCED STYLING.”—JOE LOMBARDO, PRESIDENT, GULFSTREAM

CIVIL SHOW REVIEW


The Brazilian airframer also announced a price increase of 3 per cent, which becomes effective as of November 1 for the Phenom 300. The new price will be $6.85 million (Rs 33 crore). Luis Carlos Affonso, Embraer’s Executive Vice Presi-dent, Executive Jets says: “Even with this increase over the 2005 introductory price, the Phenom 300 continues to be attractive, as the best combination of comfort, performance, cabin space, and baggage volume in the light jet category.”

BUYING & SELLINGAside from new aircraft programme announcements, NBAA also played host to several ownership changes. Indian in-dustrial giant Tata bought a third of Piaggio Aero Industries and is now a primary shareholder along with the Ferrari and Di Mase families, and Mubadala Development Com-pany. Piaggio Aero expects the increased share capital to enable it to grow the market, expand production rates and offer the P180 Avanti II to new markets.

Tata’s involvement also strengthens growth plans by establishing a strong market presence in India, which is expected to develop 500 airports by 2020. “The future for Piaggio Aero is bright and with the support of world-class investors and strategic partners like Mubadala Development Company and Tata Limited, I’m confident we can realise our full potential,” says Piero Ferrari, Chairman of Piaggio Aero.

While Emirates Investment & Development Company (Emivest), and as of earlier this April the majority sharehold-er of Sino Swearingen Aircraft Corporation (SSAC) manu-facturer of the SJ30 aircraft, unveiled a new company name at the show. SSAC will now be known as Emivest Aerospace Corporation. Emivest acquired an 80 per cent stake in SSAC in June 2008, with Taiwanese investors and Ed Swearingen holding the remaining 20 per cent. “Emivest Aerospace Cor-poration is embarking on a new direction, fuelled by the on-going commercial acceptance of the SJ30, the light jet with the best range and speed in the industry,” said Buti Saeed Al Ghandi, Chairman of both companies at NBAA.

Emivest is a Dubai-based private shareholding equity investment company that actively targets new investment sectors. Accord-ing to Anthony Power, Emivest’s Chief Investment Officer, “We have been looking across the sector itself and have not seen any-thing else where we could kick start Emivest. The projected growth of the business aviation sector is strong throughout the world and Emi-vest is positioned perfectly to capi-talise on height-ened demand in

the light jet sector.” Emivest is also committed to bringing the SJ30 to market. “We look forward to embracing these opportunities that lie ahead by bringing the SJ30 to mar-ket in large scale production,” says Joseph Gullion, Chief Op-erating Officer.

An NBAA convention would not be an NBAA con-vention without the release of Honeywell’s market fore-cast. And that forecast pre-dicts sales of $300 billion (Rs 14,59,775 crore) over the next decade—despite the world’s

current economic meltdown.Honeywell forecasts deliveries of nearly 1,200 business jets

in 2008, a 15 per cent increase in 2007, marking the business aviation economy’s fifth year of growth, while it says 2009 deliveries are again set to break the record. Potentially 2009

could see deliveries of 1,400 jets. “I would portray the demand for business aviation as stable,” says Honeywell Aerospace President Rob Wilson. “Very few customers are going to walk away from the

deposits they had to put down. With this very strong backlog, and even with no order in-take, the industry could live off that for three-plus years,” explains Wilson. The sur-vey indicates that deliveries will pla-teau slightly in the 2010-2011 time-frame, followed by further in-creases through-out the decade as new aircraft are brought into the business aviation marketplace. SP

UNWAVERING OPTIMISM: “I WOULD PORTRAY THE DEMAND FOR BUSINESS AVIATION AS STABLE,” SAID HONEYWELL AEROSPACE PRESIDENT ROB WILSON

VISION ENHANCED: SPEAKING AT THE NBAA, CHAIRMAN AND CEO OF DASSAULT AVIATION CHARLES EDELSTENNE SAID: “THE MOST BENEFICIAL ACTION WE CAN TAKE FOR OUR GLOBAL ENVIRONMENT AND OUR COMPANY’S FUTURE IS TO CONTINUE MAKING AIRCRAFT WHICH USE THE BEST OF TECHNOLOGY FOR KEEPING THEIR EFFICIENCY ADVANTAGE OVER THE COMPETITION.” DASSAULT FALCON LAUNCHED EASY PHASE II OFFERING A HOST OF ENHANCEMENTS TO THE FLIGHT DECK, INCLUDING THE SYNTHETIC VISION SYSTEM THAT DISPLAYS A HIGH-RESOLUTION THREE-DIMENSIONAL DIGITAL IMAGE ON BOTH THE PRIMARY DISPLAY UNITS DURING ALL PHASES OF FLIGHT.

MILITARY REMINISCENCE


In the early hours of November 3 in 1988, a call from Maldives to a Joint Secretary in

the Ministry of External Affairs in India informed of an at-tack by rebels that had forced President Maumoon Abdul Gayoom to go into hiding. Maldives was seeking military help to defeat the coup, would India help? Indeed India would, was the reply. The Joint Secretary rang up army, navy and air HQs to activate necessary forces.

At Agra, 44 Squadron got three IL-76s ready at 1000 hours and 50 Independent Parachute Brigade got 6 Para ready as the vanguard and rest of the brigade as back up by 1200 hours. While firm orders were awaited, 44 Squad-ron aircrew made plans on how to get to Hulule, the island with a runway of just 6,800 ft. Would it be a landing or a para-drop to capture the runway? What factors would im-pact on the para-drop and what were the imponderables for a direct landing? Had the rebels attacked the airport? How strong in numbers were they, what weapons were they using, were they locals or mercenaries? Such thoughts exercised minds in 44 Squadron and Para Brigade. Pilots and navigators studied maps and charts to decide what routes to follow and maintain absolute secrecy. Colonel Joshi, the CO of 6 Para, and Brigadier Bulsara, Commander of the Brigade made plans on how to capture the runway after a para-drop. Intelligence was very scanty, the rebels numbered around 250, were armed with medium machine guns, rocket propelled grenades and some inputs spoke of SAMs. Determined bunch.

At about 1530 hours, officers from air and army HQs came to Agra to finalise plans to launch the rescue opera-tion. The code name was Operation Cactus. It was to be the first intervention without active support from the host

nation (the Indian Peace Keeping Force had been invited into Sri Lanka with operational and administrative sup-port). Discussions in the briefing room of 44 Squadron concluded that a para-drop was too uncertain an option with prevailing winds of 20 km/hour, as the area for drop was an island just about 2 km long and not more than 500 m wide. Dropping paratroopers by day on such a precise target was difficult enough, doing it at night was tactically unsound. It would have to be a direct landing on Hulule, with the paratroopers fanning out to capture the complete island and facilitate build up. The vanguard was K-2878, PH

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The then Commanding Officer of 44 Squadron

that spearheaded Operation Cactus—the IAF’s airborne

assault in the Maldives to rescue President

Gayoom in 1988—gives a poignant account of the

determination and dare that snatched victory within 24 hours

Code word Hudia

By Group Captain (Retd) A.G. Bewoor, Pune

MILITARY REMINISCENCE


an IL-76 captained by Group Captain A.G. Bewoor, then CO of 44 Squadron; the second IL-76, K-2999, would be flown by Wing Commander A.S. Gill. The spearhead would be 400 seasoned paratroopers.

LANDING WITHOUT RUNWAY LIGHTSOn November 3, 1988, Bewoor and Gill executed a forma-tion take-off at 1803 hours. Operation Cactus was on its way. The Air Traffic Control (ATC) was informed that just one aircraft was flying from Agra to Trivandrum, on a rou-tine cargo flight. If clearance had been made to Maldives, customs and immigration would have become inescapable at Palam airport in Delhi. The reader can conjecture who would have been more surprised, Collector Customs or Colonel Joshi. Gill remained in formation one km behind Bewoor, maintaining radio silence. Keeping station in that status for four hours was creditable. Given the short time for planning between Para Brigade and 44 Squadron, Be-woor and Joshi discussed plans on the induction and cap-turing of Hulule Island.

Naturally, the actual situation after landing would de-mand quick changes, which was the hallmark of 44 Squad-ron and Para Brigade. Developments in the Maldives were not filtering out—it appeared the rebels had control of vital installations—but the President was safe. K-2878 and K- 2999 were at 37,000 ft when they passed over Trivandrum. The ATC there was quite perturbed that K-2878 was head-ed somewhere else instead of landing at his base. Group Captain Pannicker of South-ern Air Command explained the reasons to them. All very secret. Most Indians and for-eigners, too, did not believe that Indian armed forces could react rapidly and stealthily in an operation that stretched 3,000 km across the Indian sub-continent.

The code word for land-ing was ‘Hudia’, and the ATC at Hulule would transmit this word on query. Bewoor de-scended to 20,000 ft with Gill in tow and contacted Hu-lule with four words, “This is Friendly One”. “Go ahead,” came the reply. Bewoor queried as planned, “Do you have a message for me?” “ Hudia, Hudia, Hudia”—the correct code and clearance to land. A nagging doubt, however, persisted: was the code word gushed out in relief and joy, or was there a rebel with a pistol at the controllers head, directing him “Speak punk” like Clint Eastwood did so of-ten. The runway lights came on for 10 seconds, the aircraft was aligned and they went off. The controller was afraid of alerting the rebels. This was going to be a nerve wracking approach and landing without runway lights, that too, in the middle of the Indian Ocean right next to the Equator with strong cross winds.

By now, Gill had separated and was orbiting at 3,000 ft. The IL-76’s ground mapping radar was picking a large echo because of the shallow coral, making it impossible

to discern where the RW was. In case of para-drop, most paratroopers would have been severely cut by the sharp coral. Bewoor descended using two amber lights against a pitch black background on a moonless night of Novem-ber 3. At about 150 m, Bewoor asked for lights, they came on, and as the tyres kissed the concrete, the lights were switched off. Most disconcerting for any pilot. Reverse on all four engines, sitting on brakes, K-2878 stopped with three slabs to spare. Bewoor turned around, started open-ing cargo doors and lowering the ramp for swift exit of troops.

Operation Cactus Phase 1 had been successfully com-pleted at 2148 hours. Gill landed five minutes later, and was horrified to see soldiers crossing the RW during his landing run. Indian paratroopers like to live dangerously.

PRESIDENT RESCUED, REBELS CAPTUREDHulule island was secured by 2245 hours. Boats were pro-cured and the President’s rescue party left for Male at 0005 hours on November 4. While crossing the harbour, they fired rockets and hit a ship—it was the MV Progress Light escaping with rebel leader Lutfi and Maldivian hostages. Progress Light was intercepted by INS Godavari and INS Betwa in a high seas drama that deserves a separate nar-rative. Suffice it to say that preventing Progress Light from reaching Sri Lanka was one of the most critical elements of Operation Cactus. Both Captain Gopalachary of Goda-vari and Commander Hari Gokhale of Betwa did a com-mendable job. Colonel Joshi made his beach-head on the western face of Male and led the rescue party to secure Gayoom. By 0300 hours, they had got Gayoom safely into the National Security Service building.

In a house-to-house search, paratroopers captured some 30 rebels with lots of ammunition and explosives, another 70 rebels came off Progress Light. It was time to tell the world that the Indian armed forces, with the IL-76s of the Indian Air Force in the lead, had successfully defeated the coup in Maldives.

Gayoom spoke with Rajiv Gandhi at about 0430 hours on November 4. Phase II of Operation Cactus had been completed in less than 24 hours from that first phone call. 44 Squadron flew another three sorties that night to bring in the Para Brigade. 6 Para remained in Maldives for one year, and on November 3, 1989, K-2878 returned to Hu-lule for de-induction.

The professionalism demonstrated by the Indian armed forces was noted by all major powers and countries in In-dia’s neighbourhood. India’s ability to decisively intervene on invitation and project its force in support of legitimate governments was endorsed. Good training, initiative and officers leading from the front were abundantly proven in Operation Cactus. Lack of intelligence, delays due to de-liberations, limited time for planning, no RW lights in the middle of Hind Mahasagar—such impediments did not de-ter Joshi, Bewoor, Bulsara, Gill and the officers and men of 44 Squadron and 50 (I) Parachute Brigade.

Operation Cactus remains an objective lesson on how rapid deployment critical operations should be executed. The rules of centralised planning and decentralised execu-tion and learning the operations of war of other services are always paramount. SP

Operation Cactus remains an

objective lesson on how rapid

deployment critical

operations should be executed


Drawing the curtains on some really nail biting moments, the 123 Indo-US nuclear deal is finally done, sealed and delivered. Consequently, India can now hope to be allowed out of the technologi-

cal doghouse it had been consigned to nearly 35 years ago. Doomsday specialists are still trying to convince inflamma-ble segments of the public that somehow India has allowed itself to be trapped into a sinister plot which would hold the country in perpetual bondage to American interests. US House Committee on Foreign Affairs Chairman Rep. Howard Berman’s assertion that US must call off the deal if India tests a nuclear device Together with President George W. Bush’s note to the Congress that Wash-ington is not bound by any permanent guarantees to supply nuclear fuel to India (irrespective of what Delhi does) helped fuel doubts.

A couple of points need reiteration in an attempt to bring clarity to some issues which have created more heat than light in the ongoing quibbling. First, one must not forget that the Hyde Act has the status of domestic law of the US. It is fudge if India continues to assert that having signed the 123 agreement, the Hyde Act has become irrelevant. The US executive has repeatedly assured the Congress that 123 does not and, indeed, cannot bypass provisions of the US domestic law. What 123 does attempt to do is sweeten the deal. Two issues that continued to raise hackles till the end were India’s right to test and assurances of fuel supply to the safeguarded reactors.

On the issue of testing, one can start from former Prime Minister Atal Bihari Vajpayee’s declaration in the UN General Assembly of voluntary moratorium on future testing. Hyde Act now converts this into a legal binding. Agreed that there is much difference between the two but 123 softens the blow by making “room for bilateral consultation and commits the US to consider carefully the circumstances that may lead to termination or cessation of cooperation and

whether the circumstances arose out of serious concern about a changed security environment or as a response to similar actions by other states which could impact national security”. Realistically, what more could India expect. Could the US commit to look the other way if India violated what in America’s perception is the very foundation of the inter-national security regime? Does it mean that India can never test again? Of course, it can. Testing is its sovereign right. But Delhi must be ready to pay the price. And that would be so irrespective of whether the deal was in place or not. So, what’s all the fuss about?

Then there is the carping about Wash-ington’s commitment to helping India build a strategic reserve to ensure uninterrupted fuel supply for safe-guarded reactors. The anxiety is real because it is not easy for India to forget the bitter experience of Tarapur. The Hyde Act interpreted this to mean creating suf-ficient buffer against

market failures—which is certainly not what Delhi was looking for. While 123 attempts to create elbow room, but did India seriously expect the US to help in building capacities to over-ride sanctions mandated by its own laws? Besides, the waiver from the Nuclear Suppliers Group now grants India access to multiple sources of fuel, unless it closes its ranks once again in response to some rash ac-tion by Delhi.

In the final analysis, where does the balance of advantage lie? Excluded from high technology trade, with the country’s nuclear plants running un-der 50 per cent capacity (and some even facing the threat of closure in the not too distant a future), even the worst detractors of the deal would have to admit that there was something in it

which India would have been foolish to refuse. Ponder this: Would India count for more with the deal or without? In Tex-as, a saying goes: “If all you ever do is all you’ve ever done, then all you’ll ever get is all you ever got.” SP

—Air Marshal (Retd) A.K. Trikha, PuneILLU

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Does the 123 deal with the US mean

India can never test again? Of course,

it can. Testing is its sovereign right. But Delhi must be ready

to pay the price. And that would be so irrespective of

whether the deal was in place or not. So, what’s all the fuss

about?

Realistically SpeakingVIEWPOINT NUCLEAR DEAL



SP’s: What is the company profile of Boeing Integrated Defense Systems (IDS)? Dr Vivek Lall: A unit of The Boeing Company, Boeing IDS (www.boeing.com/ids/) is one of the world’s largest space and defence businesses. IDS operates in India as part of Boeing India, which has a New Delhi office staffed with 14 employees. Countrywide, there are approximately 30 Boeing employees.

Boeing IDS has a rich portfolio of products and services to offer India, such as the combat-proven F/A 18 E/F Super Hor-net multi-role combat fighter, the P-8I multi-mission maritime patrol aircraft, the heavy lift CH-47F and MH-47G heavy-lift Chinook helicopters, and the combat-proven attack helicop-ter, the AH-64D Apache Longbow. The IDS portfolio extends to the C-17 Globemaster III strategic lift cargo plane, and C4ISR platforms and Airborne Early Warning & Control Systems. IDS

is also a leading provider of aerospace support systems and network-centric operations that have high relevance to India’s requirements. The US Navy and Boeing have offered the F/A-18E/F Super Hornet to the Indian Air Force for the Medium Multi-Role Combat Aircraft (MMRCA) competition. India has a requirement for 126 fighters. Boeing also has offered the In-dian Navy the P-8I—an unique variant of the US Navy’s P-8A Poseidon—for India’s long-range maritime reconnaissance and anti-submarine warfare competition.

The US Navy and Boeing believe the F/A-18E/F Super Hor-net would be a valuable asset to India. Boeing has delivered more than 340 F/A-18E/F Super Hornets to the US Navy on time or ahead of schedule. The capability and reliability of the Super Hornet are among the reasons the US Navy is consid-ering a new multi-year purchase. Internationally, Australia in

‘US Navy-funded upgrades for

Super Hornet’

Dr Vivek Lall, Boeing IDS

India Country Head, talks to

SP’s Aviation on the company’s strategies and

collaborations to capture the Indian

market

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2007 became the first non-US customer for the Super Hornet, announcing its intent to purchase 24 F/A-18Fs to bolster its air force currently flying F/A-18 Hornets. Boeing is in discussions with Japan to provide the Super Hornet for their F-X require-ment and is responding to an RFP from Switzerland. We con-tinue discussions with numerous other foreign governments and military institutions about their interests in procuring the Super Hornet. The F/A-18 Super Hornet offers India the most advanced see-all, do-all multi-role combat fighter in production today, capable of defending the nation from the Himalayas to the Indian Ocean with unmatched lethality, pilot safety and the promise of more than 30 years of US Navy-funded upgrades.

Boeing has established important relationships with sup-pliers in India and is actively pursuing technical and business partnerships. In February 2008, The Boeing Company and Tata Industries Limited agreed on a plan to form an Indian joint venture company that will initially include more than $500 million (Rs 2,440 crore) of defence-related aerospace component work in India for export to Boeing and its interna-tional customers. In December 2007, Boeing IDS President and CEO Jim Albaugh had signed a memorandum of understand-ing (MoU) with Hindustan Aerospace Limited to bring as much as $1 billion (Rs 4,885 crore) in exportable defence aerospace work to India. In February 2007, at Aero India, Boeing signed an MoU with Larsen & Toubro Limited for joint exploration of business opportunities in India’s defence sector. In November 2006, Boeing and General Electric jointly hosted a suppliers’ conference in Bangalore that was attended by more than 40 Indian companies. Boeing’s Phantom Works has instituted a Strategic University relationship with the Indian Institute of Science to design a “wing of the future”, using advanced ma-terials and manufacturing concepts. Boeing anticipates there will be additional significant partnerships with Indian busi-nesses and institutions going forward.

ABOUT BOEING IDSBoeing IDS is a $32.4 billion (Rs 1,58,280 crore) business head-quartered in St. Louis, MO with 72,000 employees worldwide. IDS is divided into three capabilities-driven businesses:

• Precision Engagement and Mobility Systems: This business includes Airborne ASW/ISR, Global Mobility Systems, Global Strike Systems and Rotorcraft.

• Network and Space Systems: This business includes combat systems; command, control and communications (C3) networks; expendable launch programmes; missile defence systems, network programmes; space and intel-ligence systems; and space exploration.

• Support Systems: This business includes maintenance modification and upgrades; integrated logistics services; and training systems and services.

In addition to its three businesses, IDS has an Advanced Systems unit, which is linked with Boeing’s Phantom Works organisation, whose mission is to develop new technologies.

SP’s: What are the products the company would like to pro-mote in India? Dr Vivek Lall: P-8I: The P-8I is the world’s most advanced anti-submarine and anti-surface warfare plane, offering India the

reach, speed, technology and endurance necessary to protect 7,000 km of coastline, and to extend beyond India’s shores to protect crucial international shipping lanes.F/A-18E/F Super Hornet: The F/A-18E/F Super Hornet offers India the most advanced see-all, do-all combat fighter in pro-duction today, with unmatched lethality, pilot safety and the promise of more than 30 years of US Navy-funded upgrades.CH-47 Chinook: The CH-47 Chinook is a powerful workhorse helicopter as capable of supporting the Indian Army in rugged high altitude outposts as in helping build India’s infrastructure and transport relief supplies to victims of natural disasters. AH-64D Apache: Apache Longbow is the most lethal rotor-craft platform ever to enter production, with the force needed to protect the soldier by taking the fight to the adversary with technical superiority, which translates to technical overmatch when compared to threat systems that Apache Longbow crews might encounter.Harpoon: Harpoon, the world’s most successful anti-ship mis-sile, features autonomous, reliable, all-weather, lethal, over-the-horizon capability. C-17 Globemaster III: The Boeing C-17 Globemaster III is designed to fulfill military and humanitarian airlift needs well into the 21st century.Network Centric Operations: Boeing IDS is developing a num-ber of transformational programmes, systems and systems-of-systems for new network-centric warfare capabilities.

SP’s: Which Indian companies have you tied up or are likely to tie up with for joint venture/collaboration/offset arrange-ments? What are the focus area(s) of these tie-ups/ventures? Dr Vivek Lall: Boeing cannot divulge the names of com-panies we have tied up with because that information is competition sensitive. However, we can tell you the Super Hornet industry team has tied up with 37 strategic Indian companies across a breadth of disciplines in the aerospace domain, including design, engineering, parts manufacturing and aerostructures.

SP’s: What is the company’s policy on Transfer of Technology? Dr Vivek Lall: Transfer of Technology is a requirement request-ed as part of specific programmes in India, like the MMRCA deal. In such cases, Boeing will review the requirements and determine if they can be met. If so, Boeing will develop a com-petitive bid and enter into the competition.

SP’s: What are the future strategies and business plans for es-tablishing your company in India during the next decade?Dr Vivek Lall: Boeing’s plan in India is to develop a long-term partnership to strengthen all aspects of India’s aerospace ca-pabilities—civilian and defence—in the 21st century. Being the world’s largest aerospace company we are uniquely po-sitioned to bring to bear the depth and breadth of human tal-ent, technical expertise and a variety of aerospace and defence resources that will help India strengthen its self-reliance and leadership in the fields of national security, civil aviation, de-fence and space technologies. We will not only provide world class product offerings to help India grow, compete globally and strengthen its national security, but also build a strong in-frastructure base to support, maintain and upgrade these of-ferings. We have developed the flexibility to bring to India a uniquely Indian solution. SP

InFocus AIRLINES ECONOMICS

Celebrating

76Years

SPECIAL FEATURE

1. THE SURYA KIRAN AEROBATICS TEAM PERFORMS A STUNNING AERO-BALLET TO MARK THE INDIAN AIR FORCE’S 76TH ANNIVERSARY ON OCTOBER 8 AT HINDON AIR FORCE STATION NEAR DELHI. 2. IN THE LEAD, A WOMAN OFFICER SALUTES THE DAIS. 3. THE PRITHVI MISSILE STANDS TALL IN THE BACKGROUND AS IAF SOLDIERS MARCH PAST. 4. CAS AIR CHIEF MARSHAL F.H. MAJOR FELICITATES OUTSTANDING UNITS OF THE YEAR. 5. AIR CHIEF MARSHAL MAJOR INSPECTS THE PARADE. 6. A BREATHTAKING DISPLAY BY THE IAF’S SARANG HELICOPTER TEAM.(EVENTS NOT DEPICTED IN CHRONOLOGICAL ORDER.)

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Take-OffE

stablished in the 1930s by the erst-while Nizam, the Hyderabad Inter-national Airport at Begumpet had

the privilege of hosting India Aviation 2008 from October 15 to 18. The airport had receded from limelight since the com-missioning of a new facility at Shamshabad in March. A little known fact is that over seven decades ago, the first air show was held here under the aegis of the then Nizam with the pa-tronage of European aircraft manufacturers.

Showcasing the attributes and strength of the civil avia-tion sector, the four-day air show was the first international exhibition of its kind in India. Albeit on a smaller scale, the event was structured on the lines of Aero India which cen-

tres around military aviation. In all, there were around 200 ex-hibitors, large and small, from 18 different countries participat-ing in the show. The list of com-panies included leading civil air-craft manufacturers of the world. However, the scale of the exercise can only be better appreciated through a comparison with other international air shows. At the

Begumpet airfield, there were only 35 aircraft on display. Two decades ago, the Dubai air show also began on a simi-lar scale but has now more than doubled in terms of the number of exhibitors and participating aircraft. Aero Club PH

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Organised jointly by MOCA and FICCI, with Farnborough International for

promotion abroad and the US as a partner,

India Aviation 2008 attracted aviation

companies the world over

By Air Marshal (Retd) B.K. Pandey, Hyderabad

CIVIL SHOW REVIEW

BYESTERDAY, TODAY, TOMORROW: PUSHPAK, THE OLDEST TRAINING AIRCRAFT, PRECEDES THE A380


of India (ACI) displayed three different aero sports—hot air balloons, sky gliding and parasailing. Talking to SP’s Avia-tion, ACI Director General Wing Commander (Retd) Sanjay Thapar said, “A serviceable Pushpak, the oldest training aircraft which is indigenous and still flying, was flown all the way from Patiala to Hyderabad and back to Patiala for the air show. The aircraft was flown by Captain G.S. Mangat, chief flying instructor of Patiala Aviation Acad-emy. This was the longest flight for a Pushpak after its initial induction.”

Exhibits were placed in three dis-tinct arenas housed in provisional air-conditioned hangars. The limited flying display included an aerial aer-obatic show by the veritable Surya Kiran team of the IAF on the inaugu-ral day. In addition, there was static

display of civil aircraft, media briefings and an international conference at Hotel Taj Krishna on October 16. Commercially Important Persons were hosted in half a dozen chalets even as a photo exhibition covering the 75-year history of civil aviation was organised by the Ministry of Civil Aviation (MOCA) in the terminal building. At the ministry’s invitation, Jeet Aerospace Insti-tute of Pune displayed India’s first indigenously developed mobile Flight Simulator.

As per the MOCA, henceforth, India Aviation is to be held once every two years at Hyderabad. The venue has been declared as permanent since both Begumpet air-port and the city of Hyderabad have the necessary infra-

structure, as also, the latter is rapidly emerging as the new hub for aerospace and technology.

Organised jointly by the MOCA and Federation of Indian Chamber of Commerce and Industry (FICCI) with Farnbor-ough International for promotion abroad and the US as a partner, the air show provided an ideal venue for aviation

companies the world over to showcase their profiles and products as well as exploit opportunities in the aviation sector in India. Despite the recent downturn in

the industry, this sec-tor is generally perceived to have excellent poten-tial in the long term.

The exhibitors included airlines and airliners, business aircraft, machinery and equipment, air-

craft interiors, airline services, air cargo, training and skill develop-ment in aviation related disci-plines, airport infrastructure and airport city side developers. Min-ister of Civil Aviation Praful Patel inaugurated the show in the pres-ence of more than 200 dignitaries, including senior functionaries of the central and state governments, foreign delegations, media and representatives of practically all leading companies of the civil avia-tion industry and PSUs. Andhra Pradesh Chief Minister Y.S.R. Red-dy was the Chief Guest at the event that was also attended by Captain Satish Sharma, the President of the

Aero Club of India and an aviator of repute.Conceived at a time when the Indian aviation industry

was on a high growth trajectory, India Aviation 2008 was

MOVERS & SHAKERS: CAPTAIN SATISH SHARMA (SECOND FROM RIGHT) WITH ROBERT VADRA AT THE INAUGURATION; CIVIL AVIATION MINISTER PRAFUL PATEL ADDRESSES THE GATHERING; AIR INDIA RECEIVES THE AIRBUS FORMALLY

CIVIL SHOW REVIEW

CIVIL SHOW REVIEW


held against the backdrop of a drastically changed scenario, overshadowed by the turmoil and distress in the industry wherein even leading airlines are struggling for survival. The crisis in the industry is serious enough as, on the eve of the air show, the senior management of all the airlines came together to take stock of the grave situation and find solutions for the problems affecting the industry. The basic issues addressed were the high cost of Aviation Turbine Fuel (ATF), high tax rates and fierce competition vis-à-vis signifi-cant reduction in the growth of passenger traffic. Possible solutions included bailout packages from the government, reduction in taxes on ATF, withdrawal of duty on aircraft spares, reduction in landing, navigation and airport service charges.

THE HELICOPTER INDUSTRYWhile outlook for the airline industry appeared somewhat bleak, the rotary wing segment of the industry presented a brighter picture. As per the Chairman & Managing Director of Pawan Hans, R.K.Tyagi, the demand for civil helicopters is rising rapidly in the country. This accentuates the need for the development of infrastructure such as heliports for helicopter operations as also changes in regulatory provi-sions to facilitate greater efficiency in operations. Minister of Civil Aviation, Praful Patel had earlier raised hopes of the rotary wing segment of the industry by his rather optimistic assessment of demand in the next few years and declaration of the year 2008 being the ‘Year of the Helicopter’.

Of the 200-odd helicopters flying in the country, Bell He-licopter of the US has a 50 per cent market share. Having delivered the 17th machine this year, this brings the total number of Bell helicopters in India to 100. Bell Helicopter was present at the show as a part of the Textron pavilion and showcased its latest model, the Bell 429, eminently suit-able for long-range off-shore operations. Bell’s assessment of the annual demand growth of the helicopter market in India is pegged at around 15 per cent. In the order for 40 helicopters over the next three years, there is a clear bias towards corporate aviation. Bell also has plans to establish a school to train helicopter pilots as well as a heliport design and operations centre.

Commanding a dominating presence in the market for military helicopters in India, Eurocopter, a leading manu-facturer of rotary wing aircraft was present in strength showcasing mock-ups of its range of machines—the EC 135 145, and 155 for civilian use. With 64 machines flying in India at present, Eurocopter enjoys a market share of 32 per cent overall, nearly 50 per cent of which is in the oil and gas sector. Eurocopter’s machines are also operating in other segments, such as air charters, religious tourism, corporate aviation and VIP travel. Anticipating considerable potential for business in the market for civil helicopters in India, Eurocopter has set its target sales figure at 500. In its perception, the high growth sectors are internal security, law enforcement, emergency medical services, and oil and gas exploration for which there would be demand for long

SP’S WAS ONE OF THE KEY SPONSORS OF THE EVENT

CIVIL SHOW REVIEW


range machines like the EC 225. In addition, the company is actively exploring opportunities for the establishment of a training facility for helicopter pilots as also for maintenance, repair and overhaul.

Despite stiff competition from western companies, Rus-sian helicopter manufacturers are also gearing up to grab a slice of the Indian pie. Apart from a potential market for 40 machines, there are plans to set up a helicopter MRO

facility jointly with the Vectra Group in Chandigarh. Mean-while, Sikorsky, which did not have a significant pres-ence in the Indian market, has bagged an order of 10 heli-copters, including four VVIP version of the S 76C ++ and six S76 D.

BUSINESS JETSAnother segment wherein the mood was perceptibly buoyant was represented by manufacturers of business jets. With about 180 busi-ness jets flying in the Indian skies already, there appears to be an upsurge in demand. However, this is merely one sixtieth of the num-ber in the US and one seventeenth of that in Europe. Analysts see the present crisis in the industry as merely a passing phase and believe that there is immense potential in this segment in the next two years.

Bjets, Asia’s largest operator of business jets, has placed an order of 50 aircraft, a mix of various models of Cessna and Hawker, with the delivery spread out over the next five years. Cessna, the largest maker of business jets, was present as a part of the Textron pavilion and had the Citation on static display. The Hawker 850XP was also parked alongside.

Canada-based leading manufacturer of business jets Bombardier appeared optimistic about business opportuni-

ties in India in this market segment. The company had all the frontline models, such as the Learjet 60 XR, the Challenger 605 and the Global Express XRS, on static display. Com-peting with the Bombardier were the Gulfstream and the Beechcraft of the business jet family on show.

Reputed to be the fastest turbo-prop business aircraft in the world, the Piaggio Aero P-180 ‘Avanti II’ is expected to be certified by the DGCA in the near future. This air-craft, with a canard and pusher prop configuration, was another at-traction at the show. An agreement was signed between Piaggio and Tata’s Taj Air, a distributor in the region for the aircraft, for the latter to function as the sole MRO for the aircraft in India.

THE AIRLINE INDUSTRYDistinctly bifurcated into two seg-ments—long haul operators and re-gional aviation—major attractions in the former were the Boeing 777-

MIGHTY WINGS: ‘GREEN GIANT’

AIRBUS A380 OVERSHADOWS THE PUSHPAK;

VISITORS CRANE THEIR NECKS TO CATCH A

GLIMPSE OF THE SOARING A380

CIVIL SHOW REVIEW


300 ER and ‘Green Giant’ Airbus A380, which returned to France before the general public had an opportunity to view this graceful bird on the last day.

Normally, air shows are characterised by deals and or-

ders for aircraft even running into hundreds occasionally. Both Air-bus and Boeing peg the require-ment of airliners in India at around 1,000, worth over $100 billion (Rs 4,87,500 crore) over the next two decades. However, despite the highly optimistic assessment of the long term market potential for airliners in India, not a single or-der was booked for aircraft at the Begumpet air show, purportedly due to the absence of international airlines, the big buyers who chose to stay away given the turbulence buffeting the airline industry across the world. On the contrary, King-fisher cancelled orders for three Airbus 340 aircraft. Optimistic forecasts notwithstanding, Airbus has slowed down production of the Airbus 320 family of air-craft. Boeing is of the view that aviation business is cyclical in nature and there will soon be an upswing. Hence it con-templates no changes in the production schedule especially as there has been no cancellation so far. In view of the obvi-ous downturn in the industry, professionals in the industry are of the opinion that there is clearly a need to carry out a fresh assessment of the market. The tendency to wait and watch was also evident.

Focus on the airline industry in India was deflected on account of two events: the announcement by Kingfisher and Jet Airways to join hands to improve revenue and the some-what ugly episode of large scale retrenchment and re-induc-

tion of employees by Jet Airways. However, these events did serve to drive home the point that the threat to survival of the airline industry was indeed real and urgent steps were needed to redeem the situation.

REGIONAL AVIATIONEven with the pall of gloom looming over the airline industry, there is a high degree of confidence about the market potential in India amongst the manu-facturers of regional jets. Their opti-mism stems from the fact that the gov-ernment is moving ahead to upgrade 35 non-metro airports in the rapidly growing tier two cities. Special provi-sions have been made for regional airlines to provide connectivity in the north eastern regions of the country. On static display was the latest and most successful from Bombardier, the 90-seat CRJ 900NextGen. Bombardier is of the view that the future of the re-gional aviation market lies in better technology which can ensure greater fuel efficiency and lower emission lev-els. Bombardier aims to achieve this

through its Q400 Turboprop and the new C-Series regional airliners.

Another regional airliner to appear at the show was the 64-seat Russian IL 114 turboprop aircraft to be marketed in India through Hindavia Aeronauti-cal Services Limited. The Russian com-pany expected to book a few orders

soon enough and estimates the market for this short haul aircraft to be in the region of 500 in the next three years. However, fuel efficiency may be an issue with airliners of purely Russian design.

FIRST AMONG EQUALS: BOTH AIRBUS AND BOEING PEG THE REQUIREMENT OF AIRLINERS IN INDIA AT AROUND 1,000 OVER THE NEXT TWO DECADES (SEEN HERE ARE THEIR STALLS AT THE EVENT)

CIVIL SHOW REVIEW


ADMINISTRATIVE ASPECTS For a debut attempt, the air show could be described as eminently successful. The next such air show, sched-uled for 2010, is to be held in the month of March, when the weather could be warm-er than that in October. The air-conditioning at the display hangars would, therefore, need to be improved. To ease movement of visitors and af-ford better viewing, even the positioning of the hangars on the tarmac needs to be reconfigured. It may be desirable to

have a lot more aerial activ-ity on days when the show is open to the public, who would generally be less in-terested in the contents of the stalls. Other services such as car parks, entry gates, food courts and toi-

let facilities also need better management and ought to be more spacious and user friendly.

Management of the show on days, when it is open to the public, needs to be

given serious thought. This time around, the arrange-ment both on the city side and the air side proved to be inadequate, possibly due to the overwhelming response from the denizens of Hyderabad. SP

ROVING LENS: ANDHRA PRADESH CHIEF MINISTER DR Y.S.R. REDDY (LEFT) WITH ROBERT VADRA; GMR HYDERABAD INTERNATIONAL AIRPORT’S SPACIOUS STALL; SOME UNLIKELY VISITORS


MILITARY INDUSTRY

The Eurofighter Instrumented Pro-duction Aircraft 3 and seven test aircraft participated in the first air-to-air refuelling from the Air-

bus A310 MRTT tanker, kick-starting the test flight series to obtain certification of the single-seater and twin-seater Euro-fighter Typhoon. Certification of Eurofighter for in-flight re-fuelling from the Airbus tanker aircraft is expected by the end of the year.

A total of nine certification flights are planned for this

purpose. For the first test, the aircraft were continuously airborne for up to five hours. Eurofighter Typhoon is fully opera-tional in five countries. With more than 700 orders from six customers (Germany, UK, Spain, Italy, Austria and Saudi Ara-bia), Eurofighter Typhoon is a mature and

stabile combat aircraft programme. Up to now, the whole Eurofighter fleet has accumulated

over 50,000 flight hours and more than 150 aircraft have been delivered to the customers. SP

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Honeywell on a HIGH

Honeywell has received a $65 million (Rs 306 crore) production contract for its Micro Air Vehicle, the T-HawkT. The agreement is for 90 T-HawkT systems, each consisting of

two T-HawkT vehicles and one ground control unit, spares, training for operators and main-tainers, and field support. Hardware deliveries of the 90 systems will begin in the second quar-ter of 2009 and conclude in December 2009.

Each T-HawkT is small enough to carry in a backpack and is equipped with video cameras that relay information back to foot soldiers using a portable handheld terminal. The circular ve-hicle, weighing 17 lbs and measuring 14 inches in diameter, can easily fly down to inspect haz-ardous areas for threats without exposing warf-ighters to enemy fire. Honeywell’s T-HawkT also has the unique ability to take off and land vertically from complex desert and urban ter-rains without using runways or helipads.

“Honeywell’s versatile and highly capable T-HawkT will help our war fighters conduct more effective missions while keeping them out of harm’s way,” said Ed Wheeler, President, Honeywell Defense and Space. “Our T-HawkT delivers more than 40 minutes of flight endurance, more than 40 knots of

airspeed and will operate to altitudes of more than 7,000 ft.”The system has been deployed in Iraq to keep Ameri-

can troops safer by identifying enemy threats from the sky. The deployment is the first time a ducted-fan unmanned aerial vehicle (UAV) has been used during combat missions. “Hon-eywell has unsurpassed experience in devel-oping ducted-fan vertical takeoff and landing unmanned air vehicles,” Wheeler said. “Our highly precise controls allow the T-HawkT to operate at very high altitudes or just inches from the ground, providing unprecedented hover and stare capabilities for enemy detec-tion or other missions in war zones.”

The system requires minimal operator training and includes two airborne vehicles and a portable ground station used to guide the aircraft and receive images from the cameras. The ground station can be used to programme a flight path for the T-HawkT or control it manually. The aircraft also can be optionally equipped with electro-optical cam-eras for daylight operations or infrared cam-eras for night missions. A civilian version of

this technology is being evaluated by the Miami Dade Police Department for law enforcement applications. SP

First air-to-air refuelling from

Airbus A310 MRTT conducted

Typhoon: A step Forward

Wins first production contract for

T-HawkT micro air vehicle

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Hall of Fame


THE HISTORY OF AVIATION is dominated by pilots. But not pilots alone. A veritable army of men and women in a variety of supporting ser-

vices contribute, in no small measure, to the gamut of flying operations. The service that is perhaps the most closely involved with flying is that of the Air Traffic Controller (ATC). Ask any pi-lot who has ever been lost or in dire straits. The calm, reassuring voice of a competent and confident con-troller often makes the difference between a safe recovery and an un-enviable mess. Quick thinking, situ-ational awareness and the ability to nimbly adapt to rapidly changing air situations are the hallmarks of a good controller. Job stress in the profession is reputed to be among the highest of any field; consequent-ly, those prone to heart trouble are advised to stay away.

ATCs are, perhaps, taken for granted nowadays. But it was not al-ways so. Following the Wright broth-ers’ successful conquest of the air in 1903, the first two or three decades of aviation were a free for all period when pilots knew little or no regu-lation. Aircraft took off and landed on any convenient open field that had a suitably firm surface and was sufficiently free of obstructions. An ‘into-the-wind’ path was preferred. Traffic control was unnecessary. Collisions with other aircraft were avoided by the simple expedient of keeping a good lookout. As traffic grew, however, and more aircraft began to use designated airports rather than farms or fields, the con-flicts became rather frequent and aircraft descending in an attempt to land were often in danger of collid-ing with each other. An agency was sorely needed to maintain order. So in 1926 the US Congress passed the Air Commerce Act which made the Secretary of Commerce responsible for framing air traffic rules, certifying pilots and aircraft, establishing air-ways, and operating aids to navigation. Enter the Air Traffic Controller.

Archie William League is generally recognised as the first controller per-haps anywhere in the world. Born on August 19, 1907, he began his aviation career as a pilot. This probably gave him the lifelong ability to visualise

air situations from a pilot’s perspec-tive. He was a man of many parts—a licensed pilot, who barnstormed with his own ‘flying circus’, as well as a licenced engine and airframe techni-cian. He became an airport flagman at St Louis, Missouri at the tender age of 13. Flagmen provided aircraft separa-tion and direction control. They stood on the field waving red, green or white cloths that indicated to pilots if they

were approaching a suitable field with the correct course. Green flag indicated a clear field for landing, red flag spelt danger, warning the pilot not to land, and the white flag indicated to the pi-lot to orbit present position in the air until the next communication. Similar uncomplicated methods are used as backups to this day.

At age 22, Archie was officially

hired as an ATC. His first “control tower” was a garden wheelbarrow on which he mounted a beach umbrella to shelter from the sun. In it he carried a beach chair, his lunch, water, a note pad and a pair of signal flags to direct the aircraft. In winter, when the open field tended to get chilly, a padded fly-ing suit helped keep him snug. Within a few years, the signal flags were re-placed by light “guns” which focused

their beams on individual air-craft and communicated with colours and flashes. When a radio tower was installed in the early 1930s, Archie became the airport’s first radio controller. Radio controllers could provide basic weather and airfield in-formation and some assistance to the pilots to help them land.

Archie League joined the US Federal Service in 1937 at the Bureau of Air Commerce (a fore-runner of the present Federal Aviation Administration). As an ATC, he rose rapidly through the hierarchy. World War II in-tervened and he again turned to flying, attaining the rank of Colonel. Post war, it was back to control as Assistant Regional Administrator of the US Cen-tral Region in 1956—his first top management position. The crowning glory of his career in aviation began in May 1965, in Washington, as Director of Air Traffic Services. He now be-came head of the staff respon-sible for the safe and efficient operation of the nation’s entire air traffic control system.

Archie League passed away on October 1, 1986 at the age of 79. In his 36-year career he was never far from the flying environment he loved so well. If the US federal air traffic control system is today recognised as one of the most reliable in the

world, surely League can claim much of the credit. When the US National Air Traffic Controllers Association institut-ed an annual award in 2005 to honour distinguished controllers, they fittingly named it the Archie League Medal of Safety Award. SP

— Group Captain (Retd) Joseph Noronha,

Goa

Archie League(1907 – 1986)

At age 22, Archie was officially hired as an ATC.

His first “control tower” was a garden wheelbarrow on

which he mounted a beach umbrella to shelter from the sun. In it he carried a beach

chair, his lunch, water, a note pad and a pair of signal flags. In winter, a

padded flying suit helped keep him snug.

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MILITARYAsia-Pacific

Air launched BrahMos induction not before 2012The air launched version of the BrahMos will be inducted into the Indian Air Force (IAF) only by 2012, according to the Chief Executive Officer and Managing Director of Brahmos Airspace, Dr A. Sivathanu Pillai. A unique supersonic cruise missile, the BrahMos has already been inducted into service by the Indian Navy and Indian Army. The BrahMos, a jointly developed Indo-Russian cruise missile, has already been tested in a land attack version for the army and in land-to-sea, sea-to-land and sea-to-sea versions for the navy. It awaits testing as a submarine launched version for lack of a suitable testing platform with the Indian Navy.

IAF integrates military & civilian radarsA multi-radar data fusion soft-ware will present a bird’s eye view of all aerial operations at the Southern Air Command headquarters. An integrated command and control system commissioned on October 8, has enabled the real time networking of all military and civil radars in south India. This system will integrate IAF, Indian Navy and civil-ian radars in the southern peninsula using multi-radar data fusion software providing the IAF qualitatively enhanced surveillance capabilities over the huge region between the Bay of Bengal and the Arabian Sea, the Indian Ocean and large parts of Sri Lanka. “This system will help in carrying out real time networking of civil and military radars and will act as a force multiplier for the IAF in the southern peninsula,” said Air Marshal S. Radhakrishnan, the Air Officer Commanding-in-Chief of the Southern Air Command at the commissioning ceremony on IAF’s 76th anniversary. This would also increase op-erational preparedness of the Southern Air Command and aid in the optimum utilisation of air defence resources.

Flawed training by IAF causing pilot shortage: CAGThe IAF is facing an acute shortage of efficient pilots, a report of the Comptroller and Auditor General (CAG) has revealed. “The number of pilots trained in various streams during 2001-2006 was much lower than planned targets, indicating that either the training tar-gets did not take into account constraints or IAF failed to ensure adequate intake of pi-lot trainees through an effec-tive recruitment strategy,” the report reveals. The startling revelations have come after IAF chief Air Chief Marshal F.H. Major admitted in August that the air force is short of 400 pilots and it would take five years to plug the gap.

India plans to unify special forcesIndia’s army, navy and air force Special Forces (SF) are to be unified in one rapid-action force under a new joint operations doctrine that emphasises the SF’s role as ‘potent force multipliers’ in future conflicts. The classi-fied document, prepared by the Integrated Defence Staff (IDS), reportedly stresses the ‘jointness’ of India’s SF units in collective operations be-hind enemy lines. “All future wars or conflicts will demand the SF play an increasingly dominant role at all levels of war, be it strategic, operation-al or tactical,” the Ministry of Defence said in a statement. The IDS has reportedly rec-ommended unification of all three SF units into a rapid ac-tion force trained and armed by Israel and networked through C4I systems.

Italy’s Finmeccanica eyeing Indian market

Italian arms major Finmec-canica is hoping to expand its market in India through the sale of two medium range

aircraft for the Border Secu-rity Force (BSF) and also by supplying small helicopters to various states and paramili-tary forces for use in medical emergencies. Country Head Paolo Girasole said, “We are bidding for BSF requirement of two medium transport aircraft and have pitched our C-27J Spartan. The project which is managed by the Indian Air Force (IAF) is very important for us and if we get this order it will open more avenues for us in the growing Indian market.”

Considering that the government has declared the year 2008 as the year of helicopters in India, the company is in talks with both the state agencies as well as hospitals for selling AW 109 and AW 139 helicopters later this year and early next year In addition, AgustaWestland’s (a subsidiary of Finmecca-nica) NH-90 is a front-runner to supply 16 Anti-Submarine Warfare (ASW) choppers for the navy, 324 light utility choppers for the air force and army, and 13 ATR turbo-prop maritime patrol aircraft to the navy and coast guard

Operational clearance for LCA in 2010, says AntonyExpressing confidence that in-digenously-built Light Combat Aircraft (LCA) would be ready for “final operational clear-ance” by 2010, Defence Minis-ter A.K. Antony said, “Our goal of maximum indigenisation of our defence forces contin-ues.” Antony was speaking at Bangalore’s Hindustan Aero-nautics Limited (HAL) airbase after reviewing an air display of indigenously-built aircraft, along with Chief of Air Staff Air Chief Marshal F.H. Major. On show were NAL-built Saras, HAL-built Integrated Jet Trainer, Advanced Light Helicopter Dhruv and Hawk MK-132 (produced under licence). “LCA will be a reality and I am sure by 2011 we will make the first delivery,” Antony said. Improvements on the engine would be a continuous process, he said, adding that the air force and Defence Research and Devel-opment Organisation would work on a suitable engine for future induction.

AIRBUS

• Croatia Airlines, the flag carrier of the Republic of Croatia, has signed a firm contract with Airbus for the purchase of four A319s to add to its existing eight A320 Family aircraft fleet. Croatia Airlines’ A319s will feature the all-new cabin which provides more passenger comfort and will accommodate 132 passengers in a two-class configuration.

ALENIA AERONAUTICA

• Alenia Aeronautica, a Finmeccanica company, and AEROSTAR S.A. have signed in Bucharest a Memorandum of Agreement (MoA) to establish a long term manufacturing business coopera-tion on various aerospace industrial and engineering activities. Alenia and AEROSTAR will collaborate for the Eurofighter Typhoon programme, if the aircraft will be chosen by the Romanian Air Force, but the MoA also opens the doors to Aerostar for Finmeccanica aerospace activities and other activities.

ALSALAM AIRCRAFT CO.

• Boeing’s partner Alsalam Aircraft Co. was recently awarded a three-year $29 million (Rs 135 crore) contract to pro-vide programmed depot maintenance for the Royal Saudi Air Force C-130 fleet. Under this contract, Alsalam will perform repairs, inspections, mainte-nance, modifications and repainting work for 50 C-130 transport aircraft at its facilities in Riyadh, Saudi Arabia.

ARIANESPACE

• Arianespace has announced that global satellite services provider, SES, has committed to three new primary launch services using Ariane, under the Multi Launch Agreement (MLA) signed in June 2007. The commitment covers three new satellites for the SES group, including Astra 3B for SES ASTRA, plus two other satellites which have yet to be identified. Ranging from 4,400 to 5,800 kg, the three satellites are slated for launch between 2009 and 2012 using Ariane 5 rockets.

MINISTRY OF AUSTRALIA

• The Australian Minister for Defence and the Federal Member for Blair have announced that the $117.1 million (Rs 553 crore) facilities project to support the introduction of the new

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Presidential Colours for Air Force Technical CollegeWhen President Pratibha Patil presents the Colours to the Air Force Technical College (AFTC) at Jalahalli in November, the institution will become the third IAF unit in Bangalore to be bestowed the honour. AFTC has been chosen for the prestigious Colours this year, while the Standard will be handed over to 59 Squadron. The Insti-tute of Aerospace Medicine and the Aircraft Systems and Testing Establishment, both based in Bangalore, are the other units under the Training Command that have received the Colours. AFTC, which is the cradle for engi-neering officers of the IAF, has also conducted courses for the army, navy, HAL and Indian Airlines engineers, and those from friendly for-eign countries.

Procurement of defence equipment Defence Minister A.K. Antony in a written reply to Parlia-ment regarding procurement of defence equipment, said, “Procurement of defence equipment is made by the government from various indigenous as well as foreign sources to meet the require-ments of the armed forces. The import option is exer-cised when it is necessary to procure the items within a definite timeframe on opera-tional grounds to bridge the capability gaps and normally when such equipment can-

not be sourced indigenously within a specified timeframe.” He further revealed the ex-penditure incurred on import of defence equipment in the last three years as follows:2005-06: Rs 12,101.49 crore2006-07: Rs 10,022.00 crore 2007-08: Rs 15,026.68 crore

India seeks CBU-105 Sensor Fused Weapons

The Government of India has requested a possible sale of 510 CBU-105 SFW; 19 CBU-105 Integration test assets (12 live tails, 7 inert tails); five CBU-97 Integration test assets; containers; aircraft modification and integra-tion; spare and repair parts; support and test equipment; software support; personnel training and training equip-ment; technical data and publications; US Government and contractor engineering and logistics support services; and other related elements of logistics support. The estimated cost is $375 million (Rs 1,768 crore). The Defense Security Cooperation Agency has accordingly notified the Congress of a possible For-eign Military Sale to India.

The prime contractor will be Textron Systems Corpo-ration of Wilmington, MA. Textron’s SFW bomb scatters

40 projectiles, to cover 30 acres. The “skeet” projec-tiles, which look like tuna cans, will search for targets and fire the equivalent of a tank shell. If no targets are found, three safety modes ensure that the area is safe for troops to move through within several minutes, which means it’s also safe for civil-ians years later.

Europe

Ground & in-flight trials of Rafale for Swiss Air Force

The evaluation trials of the second candidate for the par-tial replacement of the Tiger fleet began as scheduled at Emmen. Night flights were also planned as part of the in-flight evaluation programme. To fully evaluate all systems, it was necessary to carry out flights in full darkness. After take-off, the aircraft flew at altitudes of between 3,000 meters and 8,000 meters. These flights also allowed the evaluation of the aircraft’s operational effectiveness and technical performance of on-board systems. F-18

(Left to right) “The IAF is firmly on the road to leapfrog a generation ahead,” IAF Chief F.H. Major said in his inaugural speech at the Air Force Commanders’ Conference held in Delhi on October 30; Defence Minister A.K. Antony and Prime Minister Manmohan Singh were received by the three service chiefs at the start of the Combined Commanders’ Conference on November 1; during a two-day visit to India starting November 4, Poland’s Defence Minister Bogdan Klich met his Indian counterpart for talks on mutually advantageous arms deals.

MEETINGS, GREETINGS & GATHERINGS

F/A-18F Super Hornet has received Parliamentary approval. The Australian Super Hornet Facilities Project will deliver the facilities and infrastructure to support No 82 Wing’s operations at RAAF Base Amberley for at least 10 years from 2010. Super Hornet will replace the F-111.

BHARAT DYNAMICS LIMITED

• Chairman and Managing Director of Bharat Dynamics Limited (BDL) Major General (Retd) Ravi Khetarpal presented a dividend cheque of Rs 23 crore for 2007-08 to Defence Minister A.K. Antony. The company achieved a turnover of Rs 454 crore during the year. A Mini-Ratna Category-I company, BDL is among the few in the world with capabilities to produce state-of-the-art guided weapon systems.

BOEING

• The Boeing Company has an-nounced that it will manufacture and deliver control system hardware and modification kits to improve security at more than 450 Minuteman III facilities as part of the US Air Force Intercontinental Ballistic Missile Security Modernisation Programme. Boeing will perform the production work under a $10 million (Rs 47 crore) subcontract to Northrop Grumman Mission Systems.

EMBRAER

• The EMBRAER 170/190 family of E-Jets in operation worldwide recently surpassed the mark of 2 million flight hours. The fleet of aircraft and the cus-tomer base continue to grow rapidly, and now over 450 jets are flying for 50 airlines in more than 30 countries.

EUROCOPTER

• Eurocopter and PT. Dirgantara Indonesia have signed a cooperation agreement which aims to set up a local assembly line to manufacture airframes for Super Puma MKII he-licopters. This contract is worth $42 million (Rs 197 crore) over a period of at least 10 years, with operations of serial production starting in 2011.

EUROFIGHTER

• A Eurofighter Typhoon fighter aircraft in the full two-tone grey livery of the Royal Saudi Air Force (RSAF) has flown for the first time

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Hornet was used as the target aircraft and the PC-21 was used to evaluate night forma-tion flight. Similar flight tests will take place for the third candidate, the Eurofighter. Final selection of the winning contender, based on these of-fers and on the results of the evaluations, is scheduled for July 2009.

Americas

USAF creates Global Strike Command for nuclear armsThe US Air Force has an-nounced plans to put all US nuclear-armed bombers and land-based missiles under a new command, in an effort to prevent further security lapses like the ones that re-sulted in the dismissal of top air force leaders earlier this year. The command is called Global Strike Command led by a three star general. The new Secretary of the Air Force, Michael Donley, says he wants to improve the focus on nuclear weapons following two incidents that led to the firing of his predecessor in June. In the first incident, US nuclear weapons were acci-dentally flown across the US. The other incident involved accidental shipment to Tai-wan of non-nuclear compo-nents for nuclear bombs. Offi-cials blamed the lapses on an erosion of concern in the air force for its nuclear responsi-bilities, something Secretary Donley wants Global Strike Command to change.

Lockheed Martin’s JASSM-ER successful in latest testA Lockheed Martin JASSM-ER has successfully com-pleted a recent integration flight test at White Sands Missile Range, NM. The mis-sile achieved safe separation from the B-1B launch air-craft, successfully navigated through a preplanned course, striking its intended target. The flight test objectives were to validate new hardware and software in the missile, including new wing molds and the JAGR-S in the ER configuration. The JAGR-S is an advanced global posi-tioning system receiver that incorporates anti-jamming capability.

CIVIL AVIATIONAsia-Pacific

BA bid to takeover India’s Go Air grounded by ownership laws

British Airways (BA) planned an audacious, multi-million pound takeover of one of India’s leading airlines, but the scheme was derailed by problems with industry-ownership laws. The target was Go Air, a rapidly growing domestic carrier based in Mumbai. BA wanted to take a controlling or significant minority share, with senior industry sources saying it was ready to pay up to $600 million (£371.2 million; Rs 2,826 crore) for the stake.

Such cross-border deals are normally out of the ques-tion in commercial avia-tion, which has tough rules preventing foreign nationals owning or taking control of airlines. It is understood BA may negotiate a marketing alliance with Go Air instead, with the Indian airline us-ing BA flight codes on its domestic network. With BA preferring to stay silent on the subject, the report is yet to be corroborated.

Embraer projects China regional aircraft demand at 883 units over 20 yearsChina will need an additional 883 regional aircraft over the next 20 years, the South China Morning Post reported, citing Embraer Vice President Guan Dongyuan. “China has an undeveloped market for regional and corporate jets given that they account for just a fraction of the total number of aircraft in the country,” Guan said.

Embraer said that since setting up its first office in Beijing eight years ago it had secured 130 firm orders from Chinese airlines, for a

at BAE Systems’ Warton Aerodrome in Lancashire, North West England. This milestone marks the start of an initial test flight programme for RSAF Eurofighter Typhoon aircraft being as-sembled at Warton. RSAF is acquiring 72 Eurofighter Typhoon aircraft.

EUROPEAN COMMISSION

• The European Commission has au-thorised, under the EC Treaty rules on state aid (Article 88(2)), €35 million (Rs 213 crore) of public funding that Spain intends to give to Industria de Turbo Propulsores for the develop-ment of the low-pressure turbine for the Trent 1000 engine. The latter is being developed by Rolls-Royce for the Boeing B787.

EUROPEAN DEFENCE AGENCY

• France, Sweden and UK have signed a technical arrangement covering studies for the develop-ment of a lightweight and compact radar intended for unmanned aerial vehicles. The contract, now being negotiated, will be awarded by the European Defence Agency, acting on behalf of the three governments, to Thales, as leader of an industry consortium that includes Selex and Saab. The contract is valued at €21 million (Rs 127 crore) over four years.

GRIPEN

• The Norwegian Defence and Security Industries Association, trade union Landsorganisasjonen and Norwegian Society of Engineers, with a total of one million members, have recom-mended in their report to the authori-ties to acquire 48 new JAS 39 Gripen jets instead of US F-35 Lightning II made by Lockheed Martin Corp. Gripen is manufactured by Swedish defence and aerospace group Saab AB.

HARRIS CORPORATION

• Harris Corporation, an international communications and information tech-nology company, has been awarded a $60 million (Rs 282 crore) contract by the US Air Force to continue work under the first-year option for the Network and Space Operations and Maintenance (NSOM) programme. The NSOM programme contains a six-month base contract and six one-year options that bring the potential overall value to $405 million (Rs 1,910 crore) over six-and-a-half-years.

QuickRoundUp APPOINTMENTSBOMBARDIER COMMERCIAL AIRCRAFT APPOINTS NEW DIRECTOR OF SALES FOR INDIABombardier Commercial Air-craft has appointed Sunder Venkat Director, Sales–India, effective September 1. In keeping with Bombardier’s continued focus on India and the Indian commercial aviation market, Venkat’s base has been established in Bangalore to easily access Bombardier’s current and future customers in the entire subcontinent.

HAWKER BEECHCRAFT CORPORATION SELECTS SIDNEY E. ANDERSON AS CHIEF FINANCIAL OFFICERHawker Beechcraft Corpora-tion announced that Sidney E. Anderson will join the company as its new Chief Financial Officer following a brief transition period and appointment by the Board of Directors at its next meeting on November 6-7. Anderson will be responsible for the management and direction of the company’s finance and accounting organisation that includes financial analysis, accounting, information tech-nology, controls, budgeting, planning and forecasting.

LON L. RAINS IS DIRECTOR OF COMMUNICATIONS FOR NORTHROP GRUMMAN’S SPACE TECHNOLOGY UNITNorthrop Grumman Corpora-tion has named Lon L. Rains Director of Communications for the company’s space tech-nology sector, where he will guide efforts to increase the visibility of the company’s ca-pabilities in civil and military space, missile defence and high-energy lasers.

BELL HELICOPTER NAMES ERIC CARDINALI PRESIDENT OF CANADIAN OPERATIONSBell Helicopter, a Textron Inc. company, announced that Eric Cardinali has been named President of Bell He-licopter Canada. He replaces Jacques St-Laurent who is moving to a new position as President of Bell Helicopter’s European operations.

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regional market share of over 50 per cent.

INDUSTRYAmericas

Pratt & Whitney awarded $1.4 billion contract for F117 engine supportThe Boeing Company has awarded Pratt & Whitney a contract with a value of up to $1.4 billion (Rs 6,600 crore)

to support the C-17 air-craft fleet. The F117 engine maintenance agreement includes a one year contract and the option to extend for two additional years through 2011. The contract covers fleet management support, configuration control, thrust reversers and EcoPower en-gine wash services for the en-tire F117 fleet of 800 engines. Pratt & Whitney’s EcoPower service uses a closed-loop system with pure, atomized water to wash aircraft en-gines, thus avoiding potential contaminant runoff.

SPACEAsia-Pacific

India’s manned mission to space not before 2012, to moon by 2020Indian Space Research Organisation (ISRO) Chair-man G. Madhavan Nair has said India’s manned mission would take at least another three years. India hopes to send an astronaut into space by 2012 and a manned mis-sion to the moon by 2020. The Indian government has approved the launch of Chan-drayaan-2, which is expected to take off between 2010 and 2012, and will include a rover that will land on the moon.

Nair revealed that ISRO has indeed planned the logical, complex and ultimate

manned mission next in the pipeline. “Looking at the global scenario and also our own priorities, we believe that undertaking a manned mission is very important and for that we are now conducting a basic study as to what technologies need to be developed, what facilities need to be established and how the reliability of launch system has to be improved and so on.”

The moon mission will pave the way for India to claim a bigger chunk of the global space business. “We have launched almost 16 satellites for other countries. It will show the reliability and confidence of PSLV system. I am sure more and more opportunities will come in the near future,” Nair said.

Americas

New missile warning satellite completes rigorous environmental testingLockheed Martin has suc-cessfully completed acoustic testing of the first geosyn-chronous orbit (GEO-1) spacecraft in the Space Based Infrared System (SBIRS) pro-gramme. During the test, the fully integrated spacecraft was subjected to the maxi-mum sound and vibration levels expected during launch into orbit.

Acoustic and pyro-shock testing are among several critical environmental test phases that validate the overall satellite design, quality of workmanship and survivability during space ve-hicle launching and on-orbit operations. Thermal vacuum testing of the completed GEO-1 space vehicle, which will validate its performance at temperature extremes greater than those expected during on-orbit operations, is on track for March 2009 in preparation for delivery to the air force for a planned launch in fiscal year 2010.

Lockheed Martin Space Systems Company and Northrop Grumman Elec-tronic Systems, the payload integrator, are developing SBIRS for the US Air Force Space and Missile Systems Centre. •

LOCKHEED MARTIN

• Lockheed Martin has established a new Centre for Cyber Security Innovation. The centre of excellence represents an evolution for the com-pany and its cyber security capabilities as it organises to centrally manage its enterprise practice for technology innovation, best practices, and talent management.

NORTHROP GRUMMAN CORPORATION

• During 2008, Northrop Grumman Corporation has received US Air Force contracts valued at $72 million (Rs 340 crore) to update the B-52’s system capabilities through the inser-tion of cutting-edge EW technologies developed for the F-35 aircraft into the B-52’s electronic warfare self-protec-tion system. Northrop Grumman is also under contracts to insert the same components into AN/ALQ-131 and AN/ALQ-135 systems.

PRATT & WHITNEY

• Pratt & Whitney celebrated the opening of Belgium Engine Centre, a military maintenance, repair and overhaul (MRO) facility, in Liege, Belgium. Pratt & Whitney acquired this centre (formerly Techspace Aero) in July 2008. It offers complete MRO services for the F100-PW-100, -200, -220, and -220E engines, as well as key components of the -229 engine.

PRATT & WHITNEY CANADA

• Pratt & Whitney Canada (P&WC) will invest over Canadian $360 million (Rs 1,700 crore) in research and development in the Montreal area over the next three years following the Quebec government’s decision to pro-vide the company with reimbursable support for R&D. P&WC is a United Technologies Corp. company and the investment will be aimed at further improving engine technology.

RAFAEL ADVANCED DEFENSE SYSTEMS

• Rafael Advanced Defense Systems Ltd, along with Bluebird Aero Systems Ltd, announced that the SkyLite B mini-UAV reached the flight ceiling of 36,000 ft during demonstrations of operational flight capabilities for a tactical reconnaissance team operat-ing in mountainous areas.

QuickRoundUp SHOW CALENDAR11 November – 13 NovemberDUBAI HELISHOWDubai Airport Expo, UAEURL: www.dubaihelishow.com

11 November – 13 NovemberASIA PACIFIC DEFENCE AND SECURITYAdelaide, AustraliaURL: www.apdsexhibition.com

11 November – 14 NovemberBUSINESS AVIATION WORLD 2008Frankfurt, GermanyURL: www.businessaviation-world.aero

16 November – 18 NovemberMIDDLE EAST BUSINESS AVIATIONDubai, UAEURL: www.meba.aero

17 November – 18 NovemberUNMANNED AERIAL VEHICLES 2008London, UKEmail: [email protected] URL: www.smi-online.co.uk

1 December – 2 DecemberMILITARY AIRLIFT & RAPID REACTION OPERATIONS 2008Seville, SpainEmail: [email protected] URL: www.military-airlift.com

1 December – 3 DecemberINDIAN BUSINESS AVIATION EXPO Mumbai, IndiaURL: www.miuevents.com

6 December – 8 DecemberDEFENCE AND NATIONAL SECURITY LEADERSHIP SUMMIT 2008New Delhi, IndiaEmail: [email protected]

8 December – 10 DecemberNEXT GENERATION MATERIALS FOR DEFENSEArlington, VA, USAEmail: [email protected] URL: www.idga.org/us/ngmd

10 December – 11 DecemberAIRBORNE EARLY WARNING AND BATTLE MANAGEMENTCologne, GermanyEmail: [email protected]

LASTWord


October has been a bone-rattling month for the air-line industry with events occurring in bewildering succession. Jet Airways suddenly issued marching orders to 850 of the 1,900 employees on its list for

retrenchment only to abruptly execute a volte-face ostensi-bly brought about by any or all of the following conjectures: a genuine change of heart on the part of the man-agement, persuasion by the government or under threat from a new breed of political mafia. Whatever the reasons for the reinstatement, it failed to as-suage the trauma of employees across the industry.

Fuelling discontent, Kingfisher announced down-ward revision of salaries across the board which, in the case of some, was as high as 90 per cent. Then the government revealed that Jet Airways and Kingfisher owed oil companies a whopping Rs 2,900 crore for fuel uplifted, which the airlines were not in a position to pay. Further evidence of distress came to the fore with Jet Airways and Kingfisher joining hands to coordinate rationalisation of routes and elimination of over capacity. Competitors, after all, do not collaborate unless in deep trouble. Oth-er smaller airlines could well be facing an equally precarious predicament as airlines in India are re-ported to have accumulated losses to the tune of Rs 10,000 crore and many of them could be teetering on the verge of extinction.

Messy financial records apart, these grim epi-sodes lay bare the incoherent decision-making at corporate level on issues of critical importance to the industry, raising serious doubts about the qual-ity of professional management. Established under the public sector to not merely cater to the affluent but also serve the social diktat of providing country-wide connectivity even if routes were unprofitable, the airline industry in India has essentially been an elitist business. Earlier, airlines were run not as business enter-prises but as departments of the government under bureau-cratic control weighed down by afflictions of the public sec-tor, such as inefficiency, overstaffing, low productivity and scant focus on profitability. In the wake of economic liberali-sation in the early 1990s, the first experiment at privatisa-tion ended in disaster attributable to flawed concepts and poor management. All, barring Jet Airways and Air Sahara, closed down. A decade of operations later and reeling under Rs 1,000 crore in losses, Air Sahara was up for sale.

The second round of privatisation, beginning with Air Deccan in August 2003, ushered in a variety of business models. Kingfisher Airlines presented glamour and global brand while Paramount Airways presented quiet sophistica-

tion through all-business class con-figuration, a challenging proposition in the Indian environment. The low cost carriers operating at the humble end of the spectrum aimed at extend-ing the reach of aviation to the com-mon man. Air Deccan embarked on aggressive expansion and sought to establish a pan-India footprint. Other low cost carriers followed. However, lofty pronouncements notwithstand-

ing, they were unable to achieve economy of scale as both the fleet size and footprint failed to grow. The common strategy was to lure passengers through ridiculously low fares that were clearly unsustainable and ultimately detrimental to the financial health of airlines. The impact of high input costs obviously did not factor in their strategic plans, assuming

there were any. Set on a path of mindless splurge throw-ing all caution to the winds, responsibility for financial imprudence of this kind and such unprofessional approach must once again rest with the management.

Lack of homegrown pro-fessional cadre meant the state-owned airlines produced managers largely from non-aviation background, who were more bureaucratic than professional. Private airlines understandably resorted to in-duction of foreign experts into senior management positions. Hardly top rung, these execu-tives nevertheless were paid recklessly high remuneration by the newly established air-lines in a frenzy to get ahead and on the premise that em-ployees would more readily accept leadership of experts from abroad. Tragically, this is a legacy of the colonial past. As is evident, the top manage-

ment has not exercised judicious control, handicapped per-haps by an inadequate understanding of the nuances of op-erating in the Indian environment as well as sagging levels of commitment. Flawed business models and incorrect pri-orities coupled with scant respect for fiscal discipline crip-pled the competitive environment. To make matters worse, foreign expertise acquired at great cost failed to alleviate the situation and arrest the sustained financial downslide even when the writing on the wall was clear at the outset.

Without financial support from the government, which has rushed to the aid of Air India in times of distress, air-lines in the private sector cannot hope to survive without the prerequisite of sound professional management and finan-cial prudence. SP

— Air Marshal (Retd) B.K. PandeyILLU

STR

ATIO

N:

MAM

TA

Private airlines cannot hope to survive without the prerequisite of sound professional management and financial prudence

MissingSense&Sensibility

See us at Aero India 2009, Bangalore, Hall C, Booth 14www.spsaviation.net/aeroindia.asp

SMALL “ ITEMS”.

GREAT PERFORMANCES.

D E S I G N A N D P R O D U C T I O N O F E L E C T R O N I C D E F E N C E S Y S T E M S .

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