Aero India 2013 - Huge Potential

Issue: 2 / 2013By R. Chandrakanth

The ninth edition of Aero India 2013, held from February 6 to 10, at Air Force Station, Yelahanka in Bengaluru, attracted several companies including biggies such as Boeing Commercial, Embraer and Bombardier

The first ever international air show was held in 1909 at Le Bourget airfield in Paris while the Farnborough air show has its origins in the annual Royal air Force air show at Hendon from 1920 to 1937. These two air shows with both civilian and military segments, are iconic events. Compared to these, Aero India, the biennial event in Bengaluru, India, which was held for the first time in 1996, is a toddler and India Aviation, Hyderabad, is a newborn, having been initiated as recently as in 2008. Despite their late entry, both the events are fast gaining international importance. Aero India is organised by the Ministry of Defence while India Aviation is by the Ministry of Civil Aviation.

Aero India, which is predominantly a military aviation event, has a civil aviation component that has been increasing with every show. The ninth edition of Aero India 2013, held from February 6 to 10, at Air Force Station, Yelahanka in Bengaluru, attracted several companies including biggies such as Boeing Commercial, Embraer and Bombardier. Making use of the platform, the Civil Aviation Minister Ajit Singh talked about the synergies that could be built into the aerospace sector, considering the enormous potential there is and the opportunities ahead.

“India,” he said, “is among the top three civil aviation markets in the world in the next couple of years as passenger growth, air cargo and airport infrastructure was growing at break-neck speed. Having initiated several policy measures, the government is creating an ecosystem which is expected to start yielding results soon and the airline industry hopefully will witness a quick revival. General aviation business is slated to emerge as a key driver of regional connectivity and economic development.”

The Civil Aviation Minister said that India envisaged an investment of $12.1 billion ( Rs. 66,550 crore) during the Twelfth Five Year Plan Period of which $9.3 billion ( Rs. 51,150 crore) is expected to come from the private sector. Currently, India is the ninth largest aviation market in the world handling 120 million domestic and 40 million international passengers annually.

Boeing’s Strong Presence

Aircraft major Boeing is gung-ho about the civil aviation prospects in India and Dinesh Keskar, Senior Vice-President of Asia Pacific and India Sales for Boeing Commercial Airplanes, said that while traffic is dropping due to reduced capacity, yields are improving and fuel prices are stabilising in the market. “These are all positive signs for the airlines in India. There is now a balance between supply and demand, helping airlines get reasonable yields to make a profit.” Over the next 20 years, the Boeing Market Outlook projects that the airlines in India will need 1,450 new airplanes worth $175 billion ( Rs. 9,62,500 crore).

Embraer Leads With Family of Jets

Embraer promoted its full portfolio of Commercial Aviation, Executive Aviation and Defence and Security products. The portfolio included the leading family of commercial jets up to 120 seats in the global market (E170, E175, E190 and E195), the most modern and complete product line of business jets, from the entry-level Phenom 100 to the ultra-large Lineage 1000, and a broad range of integrated solutions for defence and security that combine a high technological level and operational efficiency at competitive acquisition and operating costs. Three of the Embraer Executive Jets aircraft were on static display—the entry-level Phenom 100, the long-range Legacy 650 and the ultra-large Lineage 1000.

Embraer has a strong presence in the Indian market and counts the national government, private organisations and individuals as customers and operators. The country is home to more than a third of Embraer’s Executive Jets in the region with at least one type each of the Phenom, Legacy and Lineage jets in service today. Embraer Executive Jets is the only business jet manufacturer to produce a full range of aircraft solutions and its aircraft have received over a dozen international design and innovation awards from top luxury and aviation publications for setting a new standard for business aircraft.

 

AIR CHARTERS – NED FOR NURTURING: K-AIR

The increasing number of commercial and general aviation companies present at Aero India 2013 is testimony to the fact that there is a lot of traction, leading to aviation business growth. Understanding such dynamics, K-Air, an aviation company headquartered in Kochi, Kerala, made its presence felt at the show, showcasing its varied activities—aircraft purchase and sale, leasing, charters and management.

Speaking to SP’s AirBuz, Robin Cherian, Director, K-Air, said that as players entering the air charter business in increasing numbers, it had become important to be part of such events. There are reportedly over 120 air charter operators with 350 aircraft in India and the competition is increasing. “Air charter business is still in its nascent stages in India. The market has to mature and we need to develop it. But there are too many challenges,” said Cherian. Despite the stumbling blocks such as poor infrastructure and hostile regulatory framework, K-Air is enthused about the market in India as there is a growing realisation that air charters offer a number of advantages, better utilisation of time being one. Corporates and individuals have started utilising air charter service. “We have to continuously nurture the market,” said Cherian.

K-Air is known for its vast network, guaranteeing availability of charter service 365 days a year with a response time of less than six hours. It offers aircraft to meet various flying needs such as passenger charters for VIPs, corporates and celebrities, film shooting, aerial photography, cargo, air ambulance, electioneering and aerial survey. It provides the customers access to multiple aircraft, accurate and reliable time slots for optimal aircraft utilisation. Cherian mentions that even while air charter business is developing slowly, there is new-found interest in pre-owned aircraft and is coming from Tier-II and Tier-III cities. “As most of them invest in the aircraft, we do take care of aircraft management.”

The price of a new business jet, he mentions, could be in the range of Rs. 20 crore to Rs. 100 crore depending on the size and features. “It is possible to get a pre-owned jet with almost 30 to 50 per cent lower acquisition cost.” K-Air, he avers, has placed over 60 aircraft through acquisition, management and lease of fixedwing and rotary-wing platforms across the world.

 

Bombardier

Bombardier Aerospace showcased two of its class-defining jets at this year’s air show with its Challenger 605 and Global 6000 business jets. “India represents huge potential for business aviation,” said Nilesh Pattanayak, Regional Vice-President, Sales, Asia-Pacific. “As the economy grows and the need for global and regional corporate travel increases in the region, the value of a business jet is now well established. Our Global aircraft family is the market leader in India and we look forward to having the opportunity to showcase a Global 6000 jet, our class-leading Challenger 605 jet and presenting our overall product portfolio.”

“It is an exciting time for business aviation in India and we are playing our part in connecting India's business leaders with the rest of the world by providing the ultimate tools to improve their efficiency,” added Pattanayak, “2012 was a great year for Bombardier Business Aircraft as we captured 60 per cent of business aircraft orders worldwide and we are continuing to build upon that success in 2013.”

HAL Keen on Expanding Civil Market

Trying to cash in on the humungous potential, Indian aerospace behemoth Hindustan Aeronautics Limited (HAL) announced at the show that it would go aggressive in its forays into the civil aviation sector. Leveraging its military expertise, HAL is entering into civil aerospace. “By 2020, the projections are that India will be the third largest civil aviation market. In recent meetings with competent authorities, it was decided in principle that HAL should lead the programme of national civil aircraft which has to be developed in collaboration with the private sector. The expert committee has pegged the investments for such a programme at Rs. 7,500 crore,” said HAL Chairman R.K. Tyagi.

Making its foray in civil aviation and MRO business, Tyagi mentioned that it had received the civil certification for Ozar airport near Mumbai from the Directorate General of Civil Aviation and hoped that it would ‘decongest’ Mumbai International Airport while it would lead to substantial savings in aviation turbine fuel. Tyagi said efforts were on to reopen HAL Airport, Bengaluru, to supplement the Bengaluru International Airport Limited and that the Civil Aviation Secretary had endorsed the same. “When BIAL was envisaged, it had planned for a capacity of ten million passengers per annum and now, it has crossed 12 million already and was preparing to handle 17 million passengers.” “HAL could supplement air connectivity by handling short haul flights,” he said and mentioned that nowhere in the world an operational airport had been closed down to accommodate a new airport.

Beechcraft Displays ‘Special Mission’ Aircraft

During Aero India 2013, Hawker Beechcraft was in its final phase of restructuring of the company and Beechcraft honchos were present to make a case for its best-selling aircraft King Air 350i. The executives were on a mission, so to say, selling the special mission capabilities of the aircraft which numbers 94 in India, a good figure and growing further.

Dassault Rides High on MMRCA Win

Dassault Aviation, which is riding high with its fighter aircraft Rafale after winning the medium multi-role combat aircraft competition, was present in good strength. Dassault had on display Falcon 2000LX, Falcon 900LX and Falcon 7X. The French manufacturer has shown big ambitions in India. The Falcon 900LX and 2000 LX feature the new FalconCabin HD plus cabin management system. Till date, Dassault has about 20 Falcons based in India and last fall, it opened a new Falcon liaison office in New Delhi.