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India NewsWatch: Aerospace SectorIndia NewsWatch is a package of news articles compiled by the Canadian Trade Commissioner

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Disclaimer: India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients. As such, the opinions and information in the included articles do not reflect the views of the

Canadian Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be

available only in the language(s) in which it was originally written.

AEROSPACE

Global airlines deploy latest aircraft to woo Indian flyersTNN/ May 1, 2012

The Indian globe trotter is being wooed like never before. The world's latest commercial aircraft are now being deployed here by foreign airlines. Japan Airlines (JAL) will use the new Boeing 787 Dreamliner on Delhi-Tokyo route from Tuesday. Lufthansa will fly the latest avatar of the jumbo jet Boeing 747-800 to Delhi and Bangalore this summer.

The deliveries of these two aircraft - that boast of features like large windows, ultra comfortable interiors and unmatched fuel efficiency - began to airlines around two months back. Request from many airlines, including Emirates, are pending with the government to fly the Airbus A-380 to Delhi for about two years.

For JAL, Delhi will be its Dreamliner's second destination. "India is a very important market for us. We have ordered 45 Dreamliners and three have joined our fleet. The first was used on Tokyo-Boston route that started on April 22. The second route will be Delhi." The airline finds the 186-seater Boeing 787 'perfect' for Delhi as it is closer to the actual demand and filling up the new fuel-efficient plane will be easier. AT present, it flies a 245-seater B-777 to Delhi five times a week.

Lufthansa, whose request for flying the A-380 to Delhi has not been cleared, is going to fly the latest jumbo jet B-747-800 to Delhi and Bangalore from this summer. "India is the first Asian country where Lufthansa will deploy B747-800. Lufthansa is the launch customer for this aircraft, the first of which will connect Frankfurt and Washington from June 1... New Delhi, Bengaluru, Chicago and Los Angeles will be added successively,"

Lufthansa said.

Lufthansa (director, south Asia) Axel Hilgers said: "The fact that we introduce the best products currently available on board of our long-haul fleet to India first shows the importance of this market for Lufthansa."

TCS Insights: Foreign airlines are acknowledging the importance of the Indian traveler by introducing the latest planes and service offerings. This opens up an opportunity for Canadian companies that offer corresponding services.

SpiceJet may deploy Q400 planes in southern and western IndiaPTI/ May 16, 2012

After successfully operating its fleet of new Bombardier Q400 planes in south and western India, low cost carrier SpiceJet is planning to deploy the aircraft to connect tourist destinations in north India.

"The fleet of new Q400 planes may come to north India and the possible states where it may fly are Uttar Pradesh, Uttarakhand, Rajasthan, Punjab and Madhya Pradesh," an official associated with the development said, refusing to be named.

This would help bridge the gap in air connectivity of places of tourist interest in northern India. It would also be helpful in expanding the SpiceJet's footprints in tier-II and tier III cities of north India, he said.

SpiceJet is the first and only airline in India to deploy Q400 aircraft in the country. The Q400 NextGen

June 2012 Contact: india.commerce@international.gc.ca

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turboprop plane can accommodate 78 passengers and is widely accepted as the best short-haul plane globally.

The airline has placed an order for 30 such aircraft. It has already taken delivery of the first seven Q400 NextGen turboprop aircraft from Bombardier of Canada.

Kalanithi Maran, a media baron-turned airline owner who took over as Chairman of SpiceJet in November 2010 after buying out American investor and turnaround king Wilbur Ross, also aims to enhance air connectivity to tier-II and tier-III cities and towns.

In the first phase of the Q-400 operations, the airline had connected Hyderabad to 12 popular tier-II and tier-III destinations like Aurangabad, Bhopal, Goa, Indore, Madurai, Mangalore, Nagpur, Pune, Rajahmundry, Tirupati, Trivandrum and Vijayawada.

TCS Insights: Given the saturation of flights between major metropolitan centres, airlines are looking at tourist destinations and smaller cities where there is a huge potential for air transport. Regional Airport-Holdings International Ltd., (RAHI) of Bangalore has developed a small airport at Gulbarga in Karnataka. RAHI’s plans to start a regional airline with 20-50 seater planes and is bound to draw attention of established domestic players who are also looking at introducing small planes exclusively for such sectors. This development creates a new market for Canadian small aircraft manufacturers to sell their planes to Indian carriers.

AAI asks states to prepare plans for setting up new airportsPTI/May 21, 2012

Aiming to operationalise 225 airports across the country by 2020, the Airports Authority of India has asked all state governments to prepare plans and create inventory of airports, helipads or even unused airstrips which they want to develop and upgrade.

India has 456 airports and airstrips spread all over, with many of them built before or during World War II.

Developing these non-metro airports to enhance air connectivity in the hinterland is part of Airports Authority of India's (AAI) plan to reactivate, upgrade and modernise at least 225 airports by 2020, way up from 84 airports which are currently operational, AAI Chairman V P Agrawal said.

The state governments have been asked to prepare prospective plans to develop airports or helipads in their respective regions, prepare an inventory of airstrips, helipads and airports and forward them to AAI.

Depending on the traffic density forecast and possibilities of non-aeronautical revenue exploitation by using surplus

land and connectivity with state capitals, the AAI would develop airports at these Tier-II and Tier-III cities, he said.

These works could be taken up either through PPP mode or in collaboration between AAI and state governments or through complete privatisation, he said.

On the two major metro airports it is developing, he said the plush new airport at Chennai is likely to be inaugurated next month, while the one at Kolkata would be completed for launch before October.

AAI has already developed 35 non-metro airports and completed upgrading of another 21, as it is carrying out work in six more at present.

In Jharkhand, the state government has already given free land for developing an airport at Deoghar, along with Rs 50 crore as earnest money. The Planning Commission has also given a matching Rs 50 crore for starting work, Agrawal said.

TCS Insights: The Ministry of Civil Aviation’s (AAI) plans to operationalize 225 airports across India will generate lots of opportunities for Canadian airport developers to participate in the expansion plans.

Embraer sees huge potential for executive jets in IndiaPTI/May 20, 2012

Brazilian aircraft maker Embraer SA is betting big on the Indian executive jets market, which it expects to account for a bulk of an estimated deliveries worth up to $12 billion in South Asia in the next 10 years.

At present, with 14 of its executive jets in service in India, Embraer boasts of commanding over 10 per cent of the current total fleet of executive/business jets registered in the country.

"Embraer forecasts deliveries of about $205 billion, corresponding to approximately 8,660 units, worth of executive jets to be delivered globally in the next 10 years. This includes executive aircraft produced by all manufacturers," Jose Eduardo Costas, Vice-President, Marketing and Sales for Embraer Executive Jets - Asia Pacific said.

Of the $205 billion, Asia Pacific is expected to account for $39.8 billion (or 1,363 units), with South Asia receiving about $10 billion to $12 billion (or 390-485 units) of executive aircraft deliveries, he added.

"We expect India to make up the bulk of the forecast deliveries for South Asia," Costas said.

He, however, did not disclose the company's current orders from India saying it does not comment on order

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book for executive jets or disclose customer list apart from customers who have publicly advised their purchase of Embraer jets.

In order to push the sales of its executive jets in India, the company has been tapping select prospective clients to demonstrate the capability and benefits of its jets.

"We are a part of industry organisations like the IBAO (Indian Business Aircraft Operators) and support actions which aim to raise the level of sophistication in the local executive aviation industry," Costas said.

Through such actions, he added, the aim is to "enhance the understanding and appreciation of the utility of our jets and the profile of this industry not only with official bodies, but also the general public."

Embraer has already named Indamer Pvt Ltd and Air Works Engineering Pvt Ltd as authorised service providers in the country for all operators of Embraer executive jets to support the operations of its customers in the country.

The company, however, said realisation of India's potential is challenged by bottlenecks in the infrastructure required to support the development and growth of the industry.

TCS Insights: The Indian executive jet market is still in its infancy as potential customers have yet to understand the full benefits and advantages of owning planes versus travelling commercial. As the market expands, so too will opportunities for companies that build and fit-up these aircraft.

IndiGO ties up with CTC Aviation Group to train pilotsPTI/ 28 May, 2012

Low cost carrier IndiGo Airlines has tied up with New Zealand-based training organisation CTC Aviation Group for training its pilots.

"We have chosen to invest in our future Captains to ensure they feel properly equipped for the additional responsibilities that come with command," IndiGo Vice President of Flight Operations Saleem Zaheer said, adding, "We wanted to take our pilots out of their normal working environment and immerse them in a training development programme that fully identifies with their needs."

In line with this dynamic expansion, the company will be upgrading carefully selected First Officers to command positions, the company said in a statement today.

IndiGo currently operates 56 of a total of 280 firm orders for Airbus A320 aircraft to be delivered by the end of 2025.

TCS Insights: Given the growth plans and firm orders for new planes placed by Indian carriers for the next 10 years, it makes business sense to train pilots in-house to control operational costs. This tie-up is a significant pointer for Canadian pilot training companies, as other domestic airlines may also plan to develop talent in-house in the long run and would look at foreign companies to assist them.

For more information on Aerospace Sector consult Aerospace Sector Profile - India

http://www.tradecommissioner.gc.ca/India

Want to know more? Contact the Aerospace Sector Team in India atindia.commerce@international.gc.ca

Disclaimer

India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients.

As such, the opinions and information in the included articles do not reflect the views of the Canadian Trade Commissioner Service (TCS) or the Government of Canada.

Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be available only in the language(s) in which it was originally written.