Aero India 2011 - Latest & Best

Aero India continues to offer an excellent opportunity for the global aerospace majors to showcase their capabilities in the civil aviation industry

The fact that the eighth edition of the Aero India International Air Show held from February 9 to 13, 2011 at Air Force Station, Yelahanka on the northern outskirts of Bengaluru, was dominated by military aviation, should not come as a surprise. Firstly, the event is hosted by the Defence Exhibition Organisation, a department under the Indian Ministry of Defence (MoD) from where it draws inspiration, ethos and its military character. The MoD was assisted by the Confederation of Indian Industry (CII). However, the role of the CII being restricted to administrative, financial and some of the management aspects of the Air Show, it is not in a position to influence its basic format, character and the process of selection of the participants. The MoD could well manage the Air Show on its own as has done in the past at Yelahanka and even at Pragati Maidan in the case of Defexpo 2010.

Ever since the Ministry of Civil Aviation, averse to playing second fiddle to MoD, opted to host a separate biennial air show at Hyderabad dedicated to civil aviation entitled “India Aviation”, the civil aviation presence at Aero India has been diminishing. The civil aviation industry in India had passed into government control when in 1953, the private airlines were nationalised to form two state-owned airlines—Air India International for linking the metros to major destinations abroad and Indian Airlines Corporation to cover the domestic sector. Being run as departments of the Central Government, the two airlines lacked the vitality and the competitive spirit of a privately-owned industry. Also, apart from the government-owned airline industry, there was very little by way of general aviation in the country to show. Thus military aviation dominated not only the skies but the psyche of the nation for over four decades since Independence. Military aviation also helped the indigenous aerospace industry to integrate globally, more so today with India emerging as perhaps the largest buyer in the world of defence equipment.

In the wake of the process of economic reforms and deregulation that India witnessed in the early 1990s, the civil aviation industry received the badly needed fillip and appeared to be turning a new leaf. However, the initial wave of enthusiasm petered out before the end of the decade only to be followed by the next wave in August 2003 with Captain Gopinath’s bold and imaginative venture that gave the civil aviation industry not only a lease of life but a new identity by way of the low-cost model. Barring a period of gloom in 2008-09, the industry since then has been on a recovery mode and justifiably deserves a separate forum to project its assets, attributes and capabilities.

Even though, the civil aviation industry has its exclusive show—the India Aviation at Hyderabad every two years, Aero India continues to offer an excellent opportunity for the global aerospace majors to showcase their capabilities in the civil aviation industry. And so Aero India 2011 witnessed a sizeable participation by the civil aviation element of the global aerospace industry with 54 per cent aircraft on display from this sector. Demand for civil aircraft in India is growing and estimates are that India will need around 1,150 civilian aircraft worth $138 billion ( Rs. 6,41,000 crore) over the next 20 years. Manufacturers of civil aircraft around the world cannot afford to ignore the formidable presence of the fastest growing market in the world. Even the smaller players in the civil segment of the industry such as Russian Sukhoi, Brazilian Embraer and Ukranian Antonov were some of the passenger aircraft manufacturers there to showcase the latest from their stables.

Market for Airliners

The Indian budget carrier IndiGo created a sensation amongst airplane manufacturers with its $15.6 billion ( Rs. 70,200 crore) order for 180 Airbus A320 aircraft. Similarly, Boeing has also a sizeable order from the other Indian carrier SpiceJet. However, as expected, Boeing dominated the civil aviation scene with a high profile presence inspired by the lucrative market potential. As per their estimates, driven by the burgeoning middle class, passenger traffic in India is expected to grow by 15 per cent annually for the next five years at least with more tier-II and tier-III airports joining the network across this vast nation. Currently, the Boeing Company has orders for 107 commercial jets from India out of which 37 would be 787 Dreamliner passenger jets. Air India has placed orders for 27 Dreamliners valued at $4.5 billion ( Rs. 20,250 crore), the first of which is to be delivered by the end of this year. The remaining 10 have been ordered by Jet Airways. Apart from the market potential for airliners, Boeing is keen on expanding its supply base in India. Currently, of the 10,000 suppliers all over the world, only 17 are located in this country. Boeing is a direct beneficiary of the growing strategic partnership between India and the US.

Not to be left far behind, Russian aircraft maker United Aircraft Corporation is in talks with Indian firms for joint production of the passenger and cargo versions of the Antonov An-148 regional airliner, which was on display. Having focused on military aviation so far, the Russian aerospace industry is now turning its attention to the civil segment in India. With the Hindustan Aeronautics Limited being preoccupied with military commitments related to military aviation, it does not have the capacity to undertake civilian projects and hence there is clear opportunity for the private industry in India. Buoyed by the success of their Superjet-100 and MC-1 programmes, the Russian aerospace industry is optimistic about their plans for collaboration in India for the An-148.