You are on page 1of 36

SP’s

RS: 75.00 (INDIA-BASED BUYER ONLY)

A n E x c l u s i v e M a g a z i n e o n C i v i l Av i a t i o n f r o m I n d i a
www.spsairbuz.net December ’09-January ’10
RNI NUMBER: DELENG/2008/24198

HIGH PRICE OF LOW FARES


2009: THE YEAR THAT WAS
STATE OF AIRLINE INDUSTRY
AN SP GUIDE PUBLICATION
IN INDIA & MUCH MORE...
See us at:
Singapore Airshow 2010
at H78 India Pavillion
See us at:
Defexpo 2010, India
at Hall 14 Stand 14.1
Transforming commercial aviation.
It’s in our power.™

Game-changing PurePower™ technology creates double-digit reductions in fuel burn, engine noise
and emissions. Learn more at www.pw.utc.com.

PurePower Engines
TM
Table of Contents Cover: ����

����������������������������������
The aviation industry � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��� � � � � � � � � � � � � � � � � �
������������������������

should reduce its carbon


�����������������

12
footprint by all means
available and become
Cover Story part of the solution.
ENVIRONMENT
Flying in the Face of Photograph:

�����������������������������
� �����������������������
� �����������������������
� ���������������������������

Abhishek Singh
�����������������������
�����������������������

Climate Change SP's Airbuz 06-09 Cover.indd 1 1/7/10 10:35:48 AM

AN SP GUIDE PUBLICATION

SP’s

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

Industry
9 ECONOMY
In The Doldrums

Business
MODERN AIRLINERS, LIKE THE BOEING B787, CONSUME ON AN AVERAGE LESS THAN THREE
LITRES PER 100 PASSENGER KILOMETRES—AN ASTOUNDINGLY LOW FIGURE BY ANY YARDSTICK 17 LCC
The High Price of Low Fare
PUBLISHER AND EDITOR-IN-CHIEF ASSOCIATE ART DIRECTOR: Ratan Sonal
Jayant Baranwal GRAPHIC DESIGNER: Rajkumar Sharma,
Vimlesh Kumar Yadav Interview
EDITOR
Air Marshal (Retd) B.K. Pandey SALES & MARKETING
Director Sales & Marketing: Neetu Dhulia
20 CORPORATE
‘India is very Important’
ASSISTANT EDITOR Head Vertical Sales: Rajeev Chugh
Arundhati Das Sales Manager: Rajiv Ranjan

ASSISTANT PHOTO EDITOR SP’S WEBSITES Retrospection


23
Senior Web Developer: Shailendra Prakash Ashish
Abhishek Singh Web Developer: Ugrashen Vishwakarma ACCIDENT ANALYSIS
SUB-EDITOR © SP Guide Publications, 2009
Bipasha Roy Collision In The Corridor
ANNUAL SUBSCRIPTION
CONTRIBUTORS Inland: Rs 800 • Foreign: US$180
Email: subscribe@spguidepublications.com
Dr Mani Sishta, Fact File
25
B.N. Gokhale, LETTER TO EDITOR
R. Srinivasan, Dr M. Bish, editor@spsairbuz.net Helicopter Flight Simulator
Group Captain Joseph Noronha,
FOR ADVERTISING DETAILS CONTACT:
Dr Mani Sishta, Captain Ajit Agtey, guidepub@vsnl.com
S.R. Swarup, Vasuki Prasad, neetu@spguidepublications.com Annual Roundup
26
J.T. Nayaham, Mahesh Acharya rajeev.chugh@spguidepublications.com
Europe Alan Peaford, Phil Nasskau r.ranjan@spguidepublications.com 2009: The Year That Was
CHAIRMAN & MANAGING DIRECTOR SP GUIDE PUBLICATIONS PVT LTD
A-133 Arjun Nagar (Opposite Defence Colony),
Jayant Baranwal
New Delhi 110 003, India. Finally
ADMIN & COORDINATION
Bharti Sharma
Tel: +91 (11) 24644693, 24644763, 24620130
Fax: +91 (11) 24647093
32 A Dream Takes Wings
Survi Massey Email: guidepub@vsnl.com

Owned, published and printed by Jayant Baranwal, POSTAL ADDRESS


printed at Kala Jyothi Process Pvt Ltd and Published at
A-133, Arjun Nagar (Opposite Defence Colony), New
Post Box No 2525, New Delhi 110 005, India.
Regular Departments
REPRESENTATIVE OFFICE
Delhi 110 003, India. All rights reserved. No part of this
publication may be reproduced, stored in a retrieval
BANGALORE, INDIA
534, Jal Vayu Vihar, Kammanhalli Main Road 3 A Word from Editor
5
system, or transmitted in any form or by any means, Bangalore 560043, India.
Tel: +91 (80) 23682534
photocopying, recording, electronic, or otherwise without NewsBriefs
prior written permission of the Publishers. www.spguidepublications.com

Next Issue: Advent of the Automatic Dependent Surveillance-Broadcast


2 • SP’S • Issue 6 • 2009 G www.spsairbuz.net
A Word from Editor

F
OLLOWING A DISASTROUS 2008 THAT Our special correspondent surveys the state of the air-
saw the global aviation industry engulfed by line industry in India and highlights the crucial role that
the debilitating effects of economic downturn, the government ought to play if the industry is to flour-
2009 rekindled hope as symptoms of econom- ish or even survive.
ic recovery began to appear in the Asian region. Full In a brilliant analysis of the changing business mod-
recovery for the airlines though is yet a distant dream els of airlines, Joseph Noronha evaluates the low cost
as the cumulative losses of the global airline industry model that most domestic carriers see as a panacea
estimated at $80 billion (Rs 3,70,965 crore) cannot be for their financial distress to conclude that the line be-
wiped out in a hurry. As per the Centre for Asia Pacific tween the Low Cost and Full Service Business Models is
Aviation, Indian carriers will have accumulated opera- in fact getting blurred.
tional losses in excess of Rs 26,000 crore up to March Also in this issue is a round up of important hap-
2010. Of this, Air India’s share alone accounts for over penings in the year gone by, News Brief as also a re-
Rs 7,500 crore. port on the helicopter simulator training facility called
For India’s airlines—apart from the chronic prob- Shaurya Flight Sim established by Shaurya Aeronautics
lems of inadequate infrastructure, high taxes, rising at Safdarjang Airport. This is the only facility of its kind
cost of fuel and low demand growth in passenger/cargo in this region and should be of boon the helicopter op-
traffic—2009 was marked by convulsions at first with erators in India.
the Federation of Indian Airlines demanding relief from Welcome aboard and wish you a happy and pros-
the government, threatening to go on strike and possi- perous year ahead!
bly total shutdown. Later pilots and management who
are frequently at loggerheads owing to inadequate un-
derstanding of each other’s compulsions, paralysed the
two largest carriers, Air India and Jet Airways, for sev-
eral days holding the traveling public to ransom.
At the international conference on climate change
at Copenhagen, commercial aviation—one of the fast-
est growing sources of global CO2 emission—inevitably
came under the scanner. The cover story in this issue
has an in-depth analysis of the subject by Joseph No- B.K. Pandey
ronha, who also focuses on the possible options avail- Editor
able to the industry to cope with the looming problem.

Issue 6 • 2009 • SP’S • 3


www.spsairbuz.net

��
SP’s

��
����
��
��
����

���
��
��
���
������
������
��
.net
��
��
�� ��
��� ���
������ ���
��� ��

���������
��� ��
��
���
���
��
���

����������������������
� ��
���
���
���
���

�������� ���� �� ��
��� ��
�����
����
����

� � � � � � � � � � �
����

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

Home Current Issue News Advertising Publications About Us Download

S I T E Highlights > Read Online


> Download eBook

����

����������������������������������
SP’s Special
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��� � � � � � � � � � � � � � � � � �
����������������� ������������������������

Flying in
the face of
climate change
�����������������������������
Aviation undeniably promotes � �����������������������
� �����������������������

global warming. Just as certainly, its


��� �������������������������
�����������������������
�����������������������

impact is increasing—and future


technological developments may
not be adequate to retrieve the
situation.

Community Download 2010 Calendar

Exclusive Calendar
Find us on Facebook for each month

d? tal
Join us on Linkedin ow re en
m
’t eq on

Follow us on Twitter
on se r vir
m Kn ui
• D pon l En
a

Onsite Report, Photographs and Videos


o res lob

t
• N the e G

en

Dr. Vivek Lall


d h

Vice President, Boeing


m
es an of t

Integrated Defense
Cessna Cessna
co

Systems
‘C-17 a very good fit for
Delivers First Rolls Out
&
• Y rns re

India’s strategic needs’


Skycatcher First CJ4
ll
e a

po
nc w
Co ia a

e
th
Ind

in
Jo
Is
quently, what elevated the business jet
from a luxury toy to what is increas-
ingly seen as a vital corporate tool? In
the US, hundreds of Fortune 500 com-

NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted

: INDUSTRY doors. Under the contract, to be in 32 countries. Gippsland’s : INFRASTRUCTURE


executed at the QuEST Global acquisition indicates Mahindra’s
Dreamliner no longer SEZ in Belgaum, Karnataka, planned entry into the two to GVK takes over BIAL
merely a dream the delivery of the sample parts 20-seat, turbo prop market, After turbulent eight years since
is to be completed by the first which the company believes, its selection as operator and co-
quarter of 2010. During the is amongst the fastest growing investor in the Greenfield new
evaluation phase, a number of segments in general aviation. A Bengaluru International Airport
Indian suppliers were assessed plant is being set up in Banga- Limited (BIAL), Zurich Airport
on various parameters ranging lore to complement these acqui- has entered a strategic alliance
from capability to infrastructure. sitions and provide dual shoring with GVK Power & Infrastruc-
This association will lead the cost benefits to customers. ture Limited for its international
companies to explore possibili- airport activities in the Indian
On December 15, 2009, the ties of further collaboration at : AIR SAFETY subcontinent. After acquiring 29
Boeing 787 Dreamliner took off a later stage. “QuEST Global is per cent stake in BIAL’s equity
on its eagerly awaited maiden among the first Indian suppliers Rapped by FAA, DGCA capital, the Hyderabad-based
flight from Paine airfield in that SAAB has associated with to expand power and infrastructure busi-
Everett, Washington more than and has plans of scaling up in In a recent audit, the US Federal ness house, GVK group, is all
two years behind the original future. The operations, being Aviation Administration (FAA) set to take management control
schedule. There were repeated based at the SEZ, would also had observed that India’s of the company that runs the
postponements, the most recent allow our customers to enjoy Directorate General of Civil country’s third largest airport
ones being on account of struc- the financial benefits of being Aviation (DGCA) was too short in terms of passenger traf-
tural problems. With Chief Pilot part of the aerospace supply staffed to be able to carry out its fic. Zurich Airport, which will
Mike Carriker in command as- chain ecosystem, the first of its duties effectively. The FAA put remain the operator of BIAL,
sisted by Captain Randy Neville kind in India,” said Aravind Mel- DGCA on notice threatening to will retain only 5 per cent of the
in the co-pilot’s seat, the sortie ligeri, Chairman & Co-founder, downgrade India to Category-II share capital. The GVK group,
had to be restricted to three QuEST Global. According to status if corrective measures which runs the Mumbai airport
hours as against the original Elisabeth Ross, Strategic Sourc- were not adopted soon enough. with its 37 per cent holding in
plan of four hours due to unfa- ing Director, “We are pleased to Consequent to action by FAA, the company, first bought 12 per
vourable weather developments, have found in QuEST Global a the DGCA has embarked on a cent stake in BIAL in November
after which the aircraft landed competent partner to meet our programme to enhance staff this year from Zurich Airport,
at Boeing’s airfield at Seattle. In component requirements. This strength to nearly thrice its cur- an original promoter, for Rs 484
accordance with the practice agreement is also an important rent size to enable the organisa- crore. GVK picked up another
of keeping the profile simple on step in Saab’s industrial coop- tion to discharge its obligations 17 per cent promoters’ stake
the first test flight, the aircraft eration program with Indian effectively especially with regard from Larsen and Toubro taking
climbed to a cruising altitude of companies.” to the critical responsibility the total holdings to 29 per cent
15,000 ft and achieved airspeed related to air safety in a rapidly at an investment of Rs 1,170
of 180 knots. On December 12, M&M forays abroad growing aviation industry. Cur- crore. The company now plans
2009 in the last major activity Mahindra & Mahindra (M&M) rently, the DGCA has a staff to increase its stake in BIAL to
before the maiden flight, the has acquired a majority stake of strength of about 250, and has 51 per cent as and when the
first 787 had successfully carried 75.1 per cent in two Australian now created another 427 Group existing partners are ready to
out high speed taxi tests and aerospace companies, Aerostaff A posts in its various director- sell their stakes.
post-rotation takeoff abort. Australia (AA) and Gippsland ates to ensure decentralisation
This event was of particular Aeronautics (GA). The acqui- and strengthening of its regional GE in JV with China’s AVIC
significance to India as the sitions, made in partnership offices across the country. The General Electric (GE) is forming
national carrier Air India has 27 with Kotak Private Equity with process of recruitment, however, a joint venture (JV) company
Dreamliners on order while Jet a total commitment of ap- may take a couple of years. with Aviation Industry Corpo-
Airways has 10. Indian compa- proximately Rs 175 crore, are in ration (AVIC), a state-owned
nies, such as HCL and the Tata keeping with Mahindra’s plans Laser guns to scare birds Chinese aerospace company to
Group, are partners with Boeing of entering the market for global Sardar Vallabhbhai Patel Inter- develop and market integrated
in the programme. aerospace components and national Airport in Gujarat is avionics systems for commercial
general aviation. AA, a compo- planning to install laser guns in aircraft customers. Based in
QuEST Global wins nent manufacturer of high-pre- a bid to scare birds away from China, the 50:50 JV, which will be
Dreamliner contract cision close-tolerance aircraft the area. The laser guns are to launched by mid-2010 subject to
from SAAB components and assemblies for be installed at the airport on a receiving all required regulatory
QuEST Global, leading pro- large aerospace OEMs, will help trial basis and on their suc- approvals, will target the US
vider of diversified engineering catapult M&M into the growing cess, these will replace existing and global markets. The new
services and manufacturing defence offset and commer- Liquefied Petroleum Gas scare avionics company will offer fully
has been awarded a five-year cial aviation market. GA is an guns. The laser guns have also integrated, open architecture
contract by SAAB for the established brand in general been tested at India’s Chha- avionics and services for future
supply of machined and sheet aviation and has delivered more trapati Shivaji International commercial aircraft programs.
metal parts for Boeing 787 cargo than 200 FAR 23 certified planes Airport at Mumbai With its plans to build around

Issue 6 • 2009 • SP’S • 5


quently, what elevated the business jet
from a luxury toy to what is increas-
ingly seen as a vital corporate tool? In
the US, hundreds of Fortune 500 com-

NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted

capabilities and rely on its China responding period last year. Total this September, also saw a 9
Events Calendar Technology Center in Shanghai revenue, according to the carrier, per cent rise in the number of
to create a technology center of decreased by 27 per cent from passengers carried despite a 17
AAAE ANNUAL AVIATION
excellence for the commercial Rs 3,258.45 crore in the second per cent reduction in capacity.
ISSUES CONFERENCE
January 10 - 14 aviation market. Shanghai- quarter of 2008 to Rs 2,380.97 In the wake of the downturn, the
Maui, Hawaii based AVIC, has more than 200 crore in the second quarter of airline had converted over 50
www.aaae.org subsidiaries and companies 2009. Losses were mainly in- per cent of its capacity to low-
spread across China and has curred on account of lower yields cost as part of its cost-cutting
NBAA REGIONAL FORUM been sourcing parts and com- due to intense competition and measures, making it 70 per cent
January 14 ponents globally for the 130-200 over capacity in the market as in all. The firm has also deployed
Enterprise Jet Center, Hobby seat commercial aircraft C919 also the high interest burden. a large portion of old Air Deccan
Field Airport, Houston, Texas airliner, which is expected to be Disruption of operations from capacity on its routes under the
www.nbaa.org. launched by Commercial Aircraft a five-day pilots strike further brand Kingfisher Red. Kingfisher
Corporation of China in 2014 and contributed to the losses. is scheduled to begin services
BAHRAIN INTERNATIONAL
enter into service in 2016. with narrow-body aircraft to
AIRSHOW 2010
January 21 - 23 Kingfisher Airlines international destinations for
Sakhir Airbase Farnborough GMR Group goes global to retire debt which the carrier has already
International Limited With the formal inauguration received some of the necessary
www.farnborough.com/Site/ of the new terminal building government approvals.
Content/bahrain of the Istanbul Sabiha Gokcen
International airport, Banga-
AEROEXPO MARRAKECH lore-based GMR Group, which : OPERATIONS
January 27 - 30 operates Hyderabad and Delhi
Menara Airport, Morocco airports, has become the first Restructuring Air India
www.aeroexpo-morocco.com Indian company to operate
an airport abroad. “With the
SINGAPORE AIRSHOW
February 2 - 7 opening of this airport terminal Dr Vijay Mallya, Chairman
Changi Exhibition Centre building a new era of relation- and CEO of Kingfisher Airlines
www.singaporeairshow.com.sg. ship and economic partnership Limited, has said the airlines is
has begun. This has opened in dialogue with private equity
HELI-EXPO 2010 many more avenues for the firms to finalise a $400 million
February 20 - 23 Indian and Turkish companies (Rs 1,850 crore) deal to clear
George R. Brown Convention to join hands,” Civil Aviation part of its debt. The airline also
Center, Houston, Texas Minister Praful Patel said during has approval of shareholders to As part of the Civil Aviation
www.heliexpo.com. the inauguration ceremony. raise $200 million (Rs 925 crore) Ministry’s restructuring plan for
The new terminal, costing Rs through rights shares and global equity infusion and debt reduc-
INDIAN BUSINESS
4,000 crore, was built in a record depository receipts. The aim is tion, Air India may discontinue
AVIATION EXPO
time of 18 months and has been to retire debts within the current operations on 650 flights a week
February 24 - 26
Taj Mahal Hotel, Delhi, India designed to eventually handle financial year. Kingfisher is in under a restructuring plan which
www.miuevents.com 25 million passengers annu- the red to the extent of $140 aims at facilitating the creation
ally. It was inaugurated by the million (Rs 650 crore) in the first of Rs 5,000 crore equity into
WOMEN IN AVIATION Prime Minister of Turkey, Recep half of 2009-2010 due to the high the debt-ridden company. The
INTERNATIONAL Tayyip Erdogan. Sabiha Gokcen price of ATF. However, dur- struggling carrier is looking at its
CONFERENCE International Airport is being ing the second quarter ending route network to rein in operat-
February 25 - 27 operated by the GMR Group, September 30, 2009, the airline ing costs. Operating non-essen-
Orlando, Florida along with its partners Malay- posted a 13.4 per cent drop in tial routes cost the company Rs
www.wai.org sian Airports Holding Berhard net loss at Rs 418.2 crore as com- 2,000 crore annually. The airline
(MAHB) and Limak Insaat San pared to a net loss of Rs 483.2 has accumulated losses of Rs
AIRCRAFT INTERIORS
Ve Tic AS (Limak) of Turkey. crore in the corresponding quar- 7,200 crore as of March 2009. Air-
MIDDLE EAST
February 28 - March 1 ter last year. The company’s op- line officials are now drawing up
Airport Expo Centre, : AIRLINE FINANCE erational performance has also plans that should see the airline’s
Dubai, UAE improved with a loss of Rs 178 monthly losses brought down
www.aime.aero Jet Airways in the red crore as against a Rs 465 crore from Rs 400 crore to Rs 120 crore
Jet Airways, one of India’s largest in the corresponding period last and as per them, this can only
carriers in the private sector, year. The operational revenue be achieved by reducing fleet
2,500 large aircraft by 2020, China announced that its net loss has slumped 13 per cent from Rs size and rationalising routes.
is slated to have a large market increased Rs 406.69 crore in 1,323 crore in the second quarter Under the new plan, the routes
demand for avionics systems and the quarter ending September last year to Rs 1,142 crore in the that may be scrapped are the
equipment worth at least $26 30, 2009, which represents an corresponding period this year. newly launched non-stop service
billion (Rs 1,20,380 crore). GE will increase by 5.76 per cent over the The carrier, which was a market to New York from Mumbai and
build on its extensive avionics loss of Rs 384.53 during the cor- leader with 23.3 per cent share Delhi. According to airline of-

6 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


quently, what elevated the business jet
from a luxury toy to what is increas-
ingly seen as a vital corporate tool? In
the US, hundreds of Fortune 500 com-

NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted

Appointments ficials, the route is projected to per cent in November from 16.6
incur a loss of Rs 450 crore on an per cent in August. Load factor
Republic Airways names Drew Skaff annual basis. Also, full-service increased from 59 per cent in
Supply Chain Vice President flights on the Gulf sector may be August to 90 per cent in some
Republic Airways Holdings named Drew Skaff, Director-Supply shifted to the airline’s low-cost sectors. Currently, AI operates
Chain at Frontier Airlines, to the position of Vice President, Supply subsidiary, Air India Express, around 400 flights daily with a
Chain of Republic Airways. With the appointment, Skaff will relocate resulting in savings of Rs 113 fleet of 150 aircraft. All its flights
to Indianapolis and direct purchasing, material control, repair and crore annually. The fleet size may connecting metro cities were
warranty, spare parts inventory management, and additional Supply be reduced from the current 132 going full. The airline is continu-
Chain functions across the Republic Airways enterprise. to 90 aircraft. ing to expand capacity. In a Rs
Mayor Michael A. Nutter appoints Mark Gale Chief 45,000 crore deal of 2005, Air
Executive Officer of the Philadelphia Division of Aviation Soon, new conduct rules India and the pre-merger Indian
Mayor Michael A. Nutter announced the appointment of Mark for airlines in India Airlines had ordered a total of
Gale Chief Executive Officer of the City of Philadelphia’s Division With heavy overbooking the 111 aircraft, 68 with Boeing
of Aviation. Gale will be responsible for directing the development, norm with airlines, rather than and 43 with Airbus. So far, AI
planning and administration of all the activities of the city’s Divi- the exception, civil aviation has taken delivery of 24 Boeing
sion of Aviation, including the Philadelphia International Airport, authorities are now making and 21 Airbus aircraft.
Northeast Philadelphia Airport and the management of about 800 moves to provide some security
airport personnel. to hapless passengers who are : BUSINESS
Virgin announces new appointment offloaded for no fault of their AVIATION
Virgin Blue Airline has officially announced the appointment of own. Considering the adverse
Liz Savage to the role of Chief Commercial Officer for Virgin Blue industry circumstances, airlines Type certification for
Airlines Group. Savage will commence duties at Virgin Blue from had been provided a lot of Dassault Falcon 7X
the end of March, 2010. Virgin Blue operates the Pacific Blue which leeway but the focus has now
operates a twice weekly flight into Honiara. shifted to the safety and rights
Etihad Airways appoints Country Manager for Sri Lanka of passengers. Airlines will now
& Maldives have to compensate passen-
Etihad Airways, the national airline of the United Arab Emirates, gers fully or adequately for a
has announced the appointment of Kumar De Silva as its Country range of defaults. New rules
Manager for Sri Lanka and Maldives. Based in the capital, Colombo, from the Directorate General of
De Silva, a Sri Lankan national, will re-establish the airline’s office Civil Aviation will ensure that
and oversee its operations in Sri Lanka and the Maldives. airlines will face cash penal-
Royal Jet Strengthens Senior Management Team with ties in the event of dumping Consequent to type certifica-
Financial Aviation Specialist passengers in instances of tion by Indian civil aviation
Royal Jet, the Abu Dhabi-based luxury aviation company, has overbooking. According to authority, Dassault is optimistic
considerably strengthened the dynamics of its executive team with government sources, airlines about orders from India and
the appointment of Richard Roth as Chief Financial Officer. Richard will first have to seek volunteers expects to deliver the first $50
Roth, a finance expert and industry veteran with over 20 years of in case of overbooking and offer million (Rs 233 crore) Falcon
experience, hails from London and has worked in a number of finan- them alternative flights. Should 7X in India by January 2010 to
cial positions in both ICI and Guinness. any passenger not be allowed Delhi-based air charter Religare
ICAO appoints Olumuyiwa Aliu Vice President to board in case of overbook- Voyages which already oper-
Dr Olumuyiwa Aliu has been appointed the first Vice President ing, then the airline will have ates a Falcon 2000, along with
on the council of the International Civil Aviation Organisation to offer compensation up to Rs other aircraft. With technology
(ICAO) in Montreal, Canada. This appointment makes him the 4,000, apart from an option for adapted from its fighter aircraft,
second in command only to the overall head of the ICAO coun- a full refund or an alternative the Falcon 7X, according to
cil. Until his appointment about three weeks ago, Dr Aliu was flight. Passengers who opt for Dassault, is the world’s first
Nigeria’s representative on the ICAO council, a position he had another flight will be eligible for fly-by-wire business jet, which
occupied since January 1, 2005. half the compensation. Further, flies faster, further and higher
Ian Calvert new CEO of CTC Aviation Training, New Zealand for any flight delayed by up to than its predecessors. Carrying
Global airline pilot training company, CTC Aviation Group plc, has five hours, it shall be mandatory eight passengers and a crew of
announced Ian Calvert’s appointment to Chief Executive Officer of for airlines—both full service three, the range of the aircraft
the company’s New Zealand operation based in Hamilton. as well as low fare—to provide is 10,556 km enabling non-stop
Mary Ellen Jones named Engine Alliance President refreshments to passengers. flight from Riyadh to New York
Mary Ellen Jones has been named president of the Engine Alliance, or from Paris to Tokyo. With
a 50/50 joint venture of General Electric and Pratt & Whitney, a divi- Increase in domestic market three engines, the aircraft flies
sion of United Technologies Corp. Jones will succeed Jim Moravecek share for Air India at speeds above Mach 0.85. The
who will return to Pratt & Whitney in a new leadership position. After a week-long strike by its three Pratt & Whitney Canada
Wayfarer names Greg Kinsella VP Business Development pilots in September 2009 which PW307A engines allow the
CharterX Professional member Wayfarer Aviation, Inc. has an- had a disastrous effect on its aircraft to operate from more
nounced the appointment of Greg Kinsella, a veteran of the business performance, Air India (AI) has demanding airfields in hot
aviation industry, to the position of VP of Business Development. increased its market share to 19 and high terrain. The engines

Issue 6 • 2009 • SP’S • 7


quently, what elevated the business jet
from a luxury toy to what is increas-
ingly seen as a vital corporate tool? In
the US, hundreds of Fortune 500 com-

NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted

are fitted with Full Authority ing this aircraft to the custom- September 30, 2009, which nance facilities at Hosur, Tamil
Digital Engine Control. At least ers,” said Pres Henne, Senior when compared to the previous Nadu. This is the first time
a dozen large-cabin Falcons Vice President, Programmes, EASA has awarded a repairs
of various models, including Engineering and Test, Gulf- station approval to an Indian
some 7X aircraft, are already on stream. Itzhak Nissan, Presi- airframe MRO company. With
order for customers in India. dent and CEO, IAI, said, “The a globally recognised EASA
Falcon 2000 and 900 models are successful first flight of the certification, Air Works will
already certified for operations G250 represents the achieve- be able to service both Indian
in India and around 16 large- ments of Gulfstream and IAI as and internationally registered
cabin Falcons are in service in the designers, integrators and aircraft. The approval covers
the country. Dassault has also manufacturers of this advanced airframe and component major
established approved service business jet. IAI continues to year, ups the profits by 20 per maintenance on ATR-42/72-500
centers along with a spare benefit from its world-leading, cent. After tax deductions, profit aircraft and Boeing 737 Classic/
parts centre in Mumbai. John strategic partnership with Gulf- for the first half of 2008 was New Generation aircraft.
Rosanvallon, Dassault Falcon stream.” The G250, which rolled $12.2 million (Rs 56.7 crore). Currently, with only one
President and Chief Executive, out of the IAI manufacturing hangar capable of housing two
said at the Dubai Air Show that facility in Tel Aviv under its Launch of ‘Deccan 360’ ATR-72 size aircraft or one nar-
type certification by Indian au- own power on October 6, 2009, Captain G.R. Gopinath who row-body aircraft, the company
thorities was significant as India remains on schedule for type founded India’s first Low-Cost plans to build another hangar
has been one of the company’s certification and entry into ser- Carrier, Air Deccan, changing capable of housing a wide-body
strongest markets over several vice by 2011. The G250 offers the face of Indian aviation, has jet to be ready by end 2010. Air
years. Pointing out that as the the largest cabin with 17 per- made a second foray in aviation Works plans to invest up to
country’s economy continued cent to 35 percent more floor by launching a dedicated air $40 million (Rs 185 crore) for
to strengthen, there would be area than any other large-cabin, cargo operation, named ‘Dec- setting up additional hangars
an increasing need to connect mid-range business jet besides can 360’. The Nagpur-based for a dedicated paint shop
India efficiently with other being capable of the longest cargo operation was launched and engine/component MRO
major centers of trade around range at the fastest speed in on November 4, 2009 with three facilities. It intends to add
the world. In this regard, he its class. The cockpit features A310 suitable modified aircraft. the Airbus 320 to it capability
emphasised that the Falcon 7X the new PlaneView 250 system Soon Deccan 360 will be induct- soon. Maintenance constitutes
provided direct, non-stop access based on Rockwell Collins Pro ing seven smaller ATR planes a major part of an airline’s
from Chennai with London. Line Fusion avionics. Powered and together with the Airbus expenses. For Indian carriers,
by twin Honeywell HTF7250G 310s, plans are to connect 17 maintenance costs are higher
Gulfstream G250 debuts engines, the business jet is Indian cities and international due to the non-availability of
Large-cabin, mid-range business capable of traveling 3,400 nauti- destinations such as Dubai and a local EASA-approved MRO
jet, the newest aircraft in this cal miles at Mach 0.80 and has Hong Kong. Deccan Cargo has facility. Domestic airlines thus
class, the G250 from Gulf- a maximum operating speed an agreement with the GMR have no option but to avail of
stream Aerospace, has success- of Mach 0.85. With an initial Group for setting up express MRO abroad at immense cost
fully completed its first flight, cruise altitude of 41,000 ft, the cargo operations outlets at and loss of fling days.
performing flawlessly during G250 can climb to a maximum Delhi and Hyderabad airports, Fredrik Groth, CEO, Air
the mission lasting over three altitude of 45,000 ft. It features which, along with the Nagpur Works said, ‘’We are grateful
hours. Designed and built in col- an all-new, advanced transonic hub, will form an extensive to the DGCA for its support
laboration with Israel Aerospace wing design that has been multi-modal storage, transpor- in obtaining the international
Industries (IAI) in Tel Aviv, optimised for high-speed cruise tation and delivery network. approval and opening of a new
Israel, the G250 was test flown and improved take-off perfor- The venture is expected to gen- maintenance centre in Hosur.
from Ben Gurion International mance. At maximum takeoff erate 5,000 jobs over five years. The EASA approval further
Airport by IAI Chief Test Pilot weight, the G250 can depart In the first phase, the company demonstrates that India is able
Ronen Shapira. The aircraft’s from a 5,000-foot runway. Its plans to appoint 100 franchi- and ready to compete with the
flight-handling qualities, char- 3,400-nautical-mile range sees with each franchisee taking world in this multibillion dollar
acteristics and performance means the G250 can fly non- on a staff of ten. industry. The MRO industry in
of systems were evaluated in a stop from New York to London India is at a nascent stage. As
climb to 32,000 ft and accelera- or from London to Dubai. : MRO the airline industry here contin-
tion to maximum speed of 253 ues to grow there will be an ever
knots. The G250, which rolled : AIR CARGO EASA Certification for Air increasing demand for MRO ac-
out of the IAI manufacturing Works tivities from the Indian market.
facility in Tel Aviv under its Blue Dart Express After a thorough and extensive We are proud to be the leading
own power on October 6, 2009, posts profit audit, Air Works, a leading third party MRO company in
remains on schedule for type Despite weakening cargo traf- Indian MRO company of long India.’’ The MRO industry in
certification and entry into fic growth in India, Blue Dart standing, has been awarded India is currently valued at $600
service by 2011. Express recorded an after tax the European Aviation Safety million (Rs 2,790 crore) and is
“We’re looking forward to profit of $4.9 million (Rs 22.7 Agency (EASA) repair station expected to grow to $1.06 billion
2011 when we’ll begin deliver- crore) for the quarter ending certification for its mainte- (Rs 4,929 crore) by 2015. SP

8 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


INDUSTRY / ECONOMY

In The DOLDRUMS
ROUGHING
IT OUT:
The state of civil
aviation in
India is rather
deplorable

Civil aviation is a contributory dynamic of the national economy.


Unfortunately, it does not appear that the government—and
especially the Ministry of Civil Aviation—appear to
share this perception.

I
N NOVEMBER 2009, MINIS- By Our without assistance from the Indian gov-
TER OF Civil Aviation Praful ernment or the Ministry of Civil Aviation
Patel told an expectant Parlia- Special Correspondent (MoCA). Indeed, the state of civil aviation
mentary Consultative Commit- in India is rather deplorable in as much
tee that domestic aviation in In- as the regulatory and facilitative machin-
dia was expected to grow at 9 to ery of the government appear to be quite
10 per cent in the next decade and that the domestic apathetic to the bleeding cuts and festering sores afflicting the
passenger base would grow from its present figure of 87 mil- airline industry over the last few months.
lion annually to around 150 to 180 million by 2020. Currently,
PHOTOGRAPHS: ABHISHEK / SP GUIDE PUBNS

India has the fourth largest domestic passenger market glob- ESCALATING LOSSES
ally after the US, China and Japan, and the minister’s projec- Let us take a brief look at the mess airlines have got themselves
tion was heartening. into. Before the second opening of the Indian skies around half
After a boom period in 2007-2008, the aviation industry had a decade ago, the average air fares were around double of what
descended into gloom during the following year, when the cu- they are today. During the same period, fuel prices rose sub-
mulative losses of India’s airlines toted up to Rs 8,557 crore. This stantially, crude having touched the $147 (Rs 6,830) mark be-
figure is expected to swell to over Rs 9,000 crore this financial fore settling down to the current $70 (Rs 3,250). Aviation fuel
year. The projection for the next financial year is a much cheer- prices (with some assistance from the inordinately high taxa-
ier one with the most optimistic view projecting overall profits. tion policy in aviation fuel) have hammered airlines’ bottom
If that were to happen, the airlines would be ecstatic. However, lines into bottom-less curves. All other costs related to operat-
history would be witness to the fact that this turnaround came ing airlines have gone up following expected inflation curves.

Issue 6 • 2009 • SP’S • 9


INDUSTRY / ECONOMY
However, and herein 4 to 33 per cent. There is a council that incorporates all the state
Air traffic lies the painful part, air
fares have fallen.
finance ministers but its response to the collective representa-
tions from airlines has been apathetic. The reason cited, expect-
in some of Overcapacity and edly, is that the high-end tax charging states are reluctant to
the Indian fierce competition have
depressed fares to abys-
lower tax levels. As the states are not in a mood, collectively or
individually, to reduce the sales tax on ATF and as it is unlikely
airports is mal levels—in the form that the sales tax on aviation fuel is going to become subject to
worse than of promotional fares
or otherwise—so that
central control, the airlines seem destined to labour under the
heavy taxation in the near future.
vehicular yields represent red bal- To add to the woes of the airlines, the Director General Civil
traffic; the ance sheets for airlines.
There was a remote pos-
Aviation has been pushing for the introduction of a Civil Avia-
tion Requirement making it compulsory for airlines to compen-
absence sibility that, given the sate passengers for delays, cancellations and denied boarding.
small number of airlines While the last one could be cited as a case where the airline
of modern in India, there could have be held responsible (after all the airline took a calculated risk
state-of-the- been a move towards
cartelisation to artificial-
of over-booking), the first two—delays and cancellations—are
being hotly contested by airlines who are quite vociferous about
art air space ly sustain fares at higher the fact that the major proportion of their delays and cancella-
management levels. However, fortu-
nately for the air travel-
tions are attributable to the lack of infrastructure to adequately
support efficient operations. Needless to say, their constant re-
equipment ler, unity amongst the frain is that, as the infrastructure is not under their control, air-
continues to airlines has been non-ex-
istent. The Federation of
lines cannot and should not be penalised for any infrastructure
related delays. In fact, airlines are indeed the victims and not the
make delays Indian Airlines has been perpetrators of the malady.
unavoidable a paper tiger with no
concrete results to show INFRASTRUCTURE WOES
in vindication of its for- The existing infrastructure at Indian airports, especially at the
mation and continued metros, is bursting at the seams. Mumbai and Delhi are unable
existence. The one occa- to accommodate any new departures or arrivals; indeed they are

sion when it got together its constituent


member airlines to unite and organised
a nation-wide strike, it exposed the non-
cohesive nature of its structure when ON SLIPPERY GROUND:
the strike fell through on account of one High taxes on Aviation
and then in quick succession, the other Turbine Fuel is a huge
members pulling out of the strike. What drain on airline profits
started off as a roar, petered out into a
whimper, rendering any such future ini-
tiatives stillborn.

STATE APATHY
Returning to the government’s role, the
long list of complaints from the airlines
has been discussed at great length in
previous issues of this journal and it
is adequate to mention that the most
critical ones are high taxes on Aviation
Turbine Fuel (ATF), the need to accord
ATF ‘declared goods’ status, the lopsided
cross subsidy impinging on ATF pric-
ing policy, rationalisation of fees being
charged by private airports and so on.
So far as pricing of ATF is con-
cerned, the MoCA shields itself behind
the convenient alibi that sales tax is a
state subject. As such the central gov-
ernment, including the MoCA, has no
say in the state policies on taxation
of ATF. The disparity in the tax levels
amongst the states is vast, varying from

10 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


INDUSTRY / ECONOMY

The immediate
challenge to AERA
is to ensure that
the airport charges
are calibrated so
as not to unduly
burden the airlines
and passengers and
at the same time
are remunerative
enough for airport
operators

EXPANDING finding it hard to even manage the ex- pected to play a crucial role in the economic well being of the vital
GIRTH: Construction isting ones with delays threatening to airport infrastructure sector in the country. The immediate chal-
of a new terminal at become the rule rather than exception. lenge to AERA is to ensure that the airport charges are calibrated
Delhi’s IGI Airport Vehicle lanes on the airside, a highly so as not to unduly burden the airlines and passengers and at the
safety sensitive area with high severity same time are remunerative enough for airport operators who are
of consequence in case of mishaps, are investing heavily in upgrade and modernisation.
almost as crowded as busy city roads. In the weeks prior to Bhave’s taking over as the Chairperson,
Air traffic in some of the Indian air- AERA, Mumbai International Airport Private Limited and Delhi
ports is worse than vehicular traffic; the absence of modern state- International Airport Private Limited rushed through changes
of-the-art air space management equipment continues to make in UDF/ADF rates, introduced new levies on catering services
delays unavoidable. This is so because the existing equipment and products being supplied to airlines from their airports, came
requires separation between two consecutive landing aircraft to down heavily on airlines resisting charges for Common User Ter-
be eight to nine nautical miles while equipment being used in Eu- minal Equipment, a service thrust down upon airlines who did
rope and American airports permits this gap to be reduced to at not ask for it in the first place, and increased the quantum of bank
least half of that figure. The reason, it may be highlighted here, is guarantees to be put into place by their client airlines. The last
not that modern equipment is not available in the market, nor step was an exceptionally draconian measure as even those air-
even that it is unaffordable, but just that there appears to be in- lines which had been paying their dues in time, were slapped with
adequate will on the part of the government to push through the this additional burden in an arbitrary manner.
installation of such equipment all this while. Now it is expected
that a few of the airports will get the required new equipment by TIME FOR CHANGE
sometime next year. The outstandingly distasteful feature of these measures—all ex-
tremely antipathetic to airline interests and bottom lines—was
ACTING PRICEY that neither the airlines nor the airport authorities were consult-
Meanwhile, in recent months, private airports appeared to be in ed by the government (read MoCA) about the subject. It would be
an indecent rush to push through newer and higher charges and stating the obvious that a proportion of these additional burdens
fees for everything that airlines (and, of course, their passengers) would eventually touch the passenger in the form of higher air
use. At least a part of their tearing hurry was on account of the fares. The establishment of AERA is a welcome step but it is yet
fact that, subsequent to the passage of the Airports Economic to be seen as to what will be the consummation level of the roles
Regulatory Authority (AERA) of India Act, 2008, and the appoint- ascribed to it by the act.
ment of Y.S. Bhave as its Chairperson, there was the possibility Civil aviation is a contributory dynamic of the national econ-
of some semblance of regulatory regime crystallising albeit in a omy. Unfortunately, it does not appear that the government, and
tentative manner in AERA’s infant days. The AERA has been as- especially the MoCA, appear to share this perception. The latter
signed the functions of determining the tariffs for aeronautical has so far stood aside as the not so innocent bystander and let
services rendered at all major airports, including for air naviga- almost all the stakeholders in the civil aviation industry in India
tion services, the fixation of User and Airport Development Fees feel aggrieved in some way or the other. Perhaps it is time for the
(UDF/ADF) and Passenger Service Fees. MoCA to consider itself as a stakeholder in the industry’s plight
AERA will also monitor the performance standards relating to and shoulder the responsibilities that go with its unrestrained au-
quality, continuity and reliability of services at airports and is ex- thority it exercises over the industry. SP

Issue 6 • 2009 • SP’S • 11


OPERATIONS / ENVIRONMENT

Flying in the
Cover Story

face of climate
change Aviation undeniably promotes global
warming. Just as certainly, its impact
is increasing—and future technological
developments may not be adequate to
retrieve the situation.

B
ILLED AS HUMANITY’S emissions drastically? Not really. Fully a
By Joseph Noronha,
LAST CHANCE to save quarter of the increase came from pro-
the planet, the achieve- Goa duction of goods for consumption in in-
ments of the COP 15 or the dustrialised nations. In effect, the devel-
Copenhagen Conference of oped world has ‘exported’ to developing
the UN Framework Con- countries the emissions needed to fund
PHOTOGRAPHS: WWW.BOEING.COM, WWW.AIRBUS.COM & VIRGIN AIRLINES

vention on Climate Change its insatiable consumption.


(UNFCC) held in December are questionable. The accord, struck
on the last day of the summit, neither mentioned specific emission SOARING EMISSIONS
reductions nor was it legally binding. The only ray of hope now be- Climate change is perfectly normal—the average temperature
ing that a legally binding treaty may emerge, possibly by the end of of the planet has fluctuated markedly through the ages. What is
2010. Meanwhile, the vast majority of experts are convinced that unique this time around is that human activity is adding to and
anthropogenic or human-induced climate change is a grim real- intensifying natural processes. Since the dawn of the industrial
ity. Many believe that global warming is accelerating; that abrupt era, the world has been heavily dependent on fossil fuels like coal,
and irreversible climatic changes are likely and it may be too late oil and natural gas, which, when combusted release Carbon Di-
to avoid runaway climate change. A few, in despair, have given up oxide (CO2), a significant heat-trapping Greenhouse Gas (GHG).
trying to convince world leaders to act, preferring instead to study CO2 persists for a century or more, so its presence in the atmo-
ways to mitigate the cataclysmic consequences. sphere has already increased by 35 per cent over pre-industrial
But in the sphere of climate change very little is what it seems. levels. Levels of CO2 today are higher than revealed in 650,000
For instance, according to recent analysis by the Global Carbon Proj- years of ice-core records. Consequently, in the last 100 years, the
ect, global emissions surged 29 per cent between 2000 and 2008, and global mean temperature has risen by about 0.75°C. This may not
practically all of that growth came in emerging economies led by seem nearly enough to lose sleep over but scientists believe that
China. Reason enough to demand that these countries reduce their a rise of just 2°C is all it might take to reach the ‘tipping point’

12 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


OPERATIONS / ENVIRONMENT
tant cirrus cloud formation. Significant doubts remain
about such non-carbon emissions, but aviation’s total
climate impact including NOx emissions, contrails and
cirrus clouds, is estimated to be two to five times great-
er than that of CO2 alone.
The general perception, that since the bulk of aircraft
emissions (80-90 per cent) occur at higher altitudes, avia-
tion has a greater impact on climate change, is not strictly
true. It makes little difference whether CO2 is added to the
atmosphere at the surface or in the stratosphere. However
NOx, a GHG, when emitted in the upper troposphere or
lower stratosphere (9-12 km) results in the formation of
ozone, another GHG. Ozone, in turn, has a stronger RF ef-
fect at higher altitudes than on the ground. Aviation has
a helpful side as well because, above an altitude of 20 km,
aircraft NOx emissions destroy a small fraction of ambient
methane, which itself is a powerful GHG and one of the
important molecules leading to ozone formation.
Apart from aircraft themselves, traffic to and from
airports, vehicles and ground equipment for aircraft
servicing, shuttle buses and vans to convey passengers,
auxiliary power units that provide electricity and air
conditioning to aircraft on ground—all produce emis-
sions. Airports and terminals during their construction
and operation are heavy consumers of power and gener-
ate considerable emissions as well.
Taking the world economy as a whole, the share
of various sources of emission is also changing. While
emissions on account of transport and industry have
skyrocketed over the past two decades, those from land
use change have remained practically the same. Conse-
FLY BY EXAMPLE: quently, the proportion of global emissions attributable
The Boeing 787 Dreamliner to deforestation has fallen—just 12 per cent now com-
pared with around 20 per cent in 1990.
Why is commercial aviation to a green activist like
a red rag to a bull? Because aviation is one of the fastest
growing sources of global CO2 emissions. Over the last
decade or so, air traffic growth has outstripped the abil-
that leads to irreversible climate change. ity of manufacturers to reduce emissions. While global CO2 emis-
As concern mounts, aviation is increasingly coming under the sions in 2008 were nearly 40 per cent higher than in 1990—the base
scanner. International aviation and shipping were excluded from year of the Kyoto Protocol—emissions from international aviation
the targets agreed under the 1997 Kyoto Protocol, the only bind- grew 83 per cent over the same period. In a carbon-constrained
ing international climate change agreement. The reason is that world (that is, with all sectors of the global economy striving to
commercial aviation and shipping operate across international achieve deep cuts in their carbon emissions) aviation’s share as a
borders, making it difficult to pinpoint responsibility for emis- proportion of total emissions is bound to rise. In September, the
sions. Although Sulphur Dioxide emissions from shipping are an UK government’s Committee on Climate Change warned that if
international health hazard, these actually help mitigate global aviation growth was left unchecked, global aviation emissions
warming which lets shipping off the hook for the time being leav- could reach 15 to 20 per cent of all CO2 generated in 2050.
ing the aviation industry to handle the blame.
Aviation indisputably impacts climate change, but by how ACTION, NOT RHETORIC
much? In 1999, the UN Intergovernmental Panel on Climate The International Air Transport Association (IATA), representing
Change (IPCC) held aviation responsible for two per cent of glob- most of the airline industry, has a four-pronged strategy to deal
al CO2 emissions and 3.5 per cent of Radiative Forcing (RF). RF is with emissions: technology, operations, infrastructure, and positive
a measure of the effect of human activity on global warming. ‘Two economic measures. IATA seeks a ‘global sectoral approach’ which
per cent’ is the figure commonly quoted by the aviation indus- implies that aviation’s carbon emissions would be accounted for
try to claim that the impact of aviation on climate change is too globally, not by state; aviation should be fully accountable for its
insignificant to bother about. However, the figure was based on emissions and required to pay only once for them; and the avia-
1992 air traffic statistics, so it is akin to planning civic services for tion industry would have access to global carbon offset markets
Delhi in 2009 based on population recorded in the 1991 census. until technology can provide permanent solutions. Shortening
Aviation also has short term effects from water vapour, par- routes, spreading best practices in fuel management and using
ticles and Nitrogen Oxides (NOx) as well as contrails and resul- more efficient ways to land are among the measures already being

Issue 6 • 2009 • SP’S • 13


OPERATIONS / ENVIRONMENT

ON A FRUGAL DIET:
An A380 is filled with
liquid fuel processed
from gas in Filton, UK in
preparation for a three-
hour flight to Toulouse
on February 1, 2008

implemented to reduce emissions. Many airlines have cut emis- Much of the industry’s hopes of future improvement are
sions by replacing gas-guzzling aircraft by more fuel-efficient ones. based on switching to biofuels, the silver lining in the dark clouds
Improved air traffic procedures, especially in the US and European of global warming. Five airlines have already tested biofuels suc-
skies could save around 10 per cent of emissions. IATA also seeks to cessfully. But stringent specifications for aviation fuel make it
encourage the development and use of sustainable biofuels. difficult to replace the carbon impact of aviation. Producing bio-
Overall, IATA is committed to improving fuel efficiency by an fuels can lead to the destruction of rainforests and soaring food
average of 1.5 per cent per year till 2020; to stabilise emissions from prices for the poor. Biofuels could also pump far more CO2 into
2020 with carbon-neutral growth; and to a net reduction in carbon the atmosphere than they could possibly save by replacing fossil
emissions of 50 per cent by 2050 compared to 2005. In October, the fuels. Even if these problems were solved, there are as yet no firm
International Civil Aviation Organisation (ICAO) modified this to a projections about producing the enormous quantities required.
global annual average fuel efficiency improvement of two per cent Many experts believe that IATA’s targeted ‘10 per cent biofuels by
till 2020, followed by an ‘aspirational goal’ of a further average annual 2017’ is unlikely to be achieved. Where is the sustainable biomass
two per cent improvement from 2021 to 2050. However, environ- feedstock or the production facilities that could produce a safe
mentalists complain that such aspirational goals amount to mere alternative with a zero carbon footprint by then? The industry is
‘green wash’ since they are much less stringent than for any other in- banking on algae-based fuels which could eventually cut carbon
dustry. Even so, these targets will be challenging because basic tech- emissions by up to 80 per cent. The certification of such fuels for
nological limitations make major improvements in fuel efficiency aviation next year should lead to a ramping up of production. But
unlikely. For example, future blended-wing aircraft are often touted the issue of large scale production remains. Fuelling a single flight
as fuel-efficient replacements for present airliners. But these aircraft or even an entire airport may seem impressive, but powering the
are so large that terminals, runways and taxiways will probably need global airliner fleet is quite another matter.
to be rebuilt to accommodate them. It is sometimes claimed that aircraft have become 70 per cent
The Aviation Environment Federation also believes that the more fuel-efficient over the past four decades. However, this is some-
ICAO/IATA targets to reduce emissions by 2050 have a ‘huge get- thing of a statistical trick which compares the most uneconomical
out’—they are not a pledge to cut actual emissions but merely early jetliner, the Comet 4 introduced in 1958, with the most efficient
rely on offsetting through emissions trading. In effect, the airline current type. Propeller-driven aircraft of the 1950s such as the Lock-
industry will pay other countries and sectors to make emissions heed Constellation were two to three times as fuel-efficient as the
cuts, rather than actually reducing its own emissions. But offsets early jets that succeeded them and practically as economical as to-
will not be available forever. As each country and sector comes day’s average jetliner. Unfortunately, the airlines’ and public craving
to terms with its own increasingly more challenging targets, will for speed caused a rapid, near-total switch to fuel-inefficient jets.
it have any slack to trade with or offset against aviation? Offsets Modern airliners like the Airbus A380 and Boeing B787 consume
also tend to distract people from making more fundamental be- on an average less than three litres per 100 passenger kilometres—
havioural changes like cutting out non-essential flying. “I’m car- an astoundingly low figure by any yardstick. However, this applies
bon neutral, so I can keep flying!” is the refrain. to when they are full of passengers and only on long-haul flights.

14 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


Indian Business Aviation Expo 2010 is ready for Take Off

24-26 February 2010, New Delhi


Exhibitor Profile
� Government and State Authorities, regulators, consultants, airports, industry associations, brokers, private
air charter operators,
� Aircraft manufacturers/OEMs, aircraft parts suppliers, MRO, FBOs.
� Aircraft leasing companies, investment authorities/banks, funding agencies, computer and software,
e-commerce solutions specialists

Conference Highlights d
ite
Indian business aviation - setting the Aviation infrastructure planning Lim ace
� � Sp able
agenda? MRO and software solutions il
� Ava
� Funding, managing and operating � Pilot training and aircraft choice
business aircraft

To Register, visit http://www.miuevents.com/ibae-10


Email: adp@miuevents.com, pallavib@eigroup.in

Sponsors Supporting Media

��������
SP’s
���� ������������������������

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

Organisers

MIU Events Ltd.


20 Layton Place, Kew Richmond Surrey, 217-B (2nd Floor),Okhla Industrial Estate, Phase III
TW9 3PP, United Kingdom Tel: +44 20 8332 2211 New Delhi 110020, India Tel : +91 11 4279 5000 / 5115

Issue 6 • 2009 • SP’S • 15


OPERATIONS / ENVIRONMENT
mental records began in 1850.
The IPCC calculates that
global warming by the end of
this century will be between
1.1 and 6.4°C above pre-indus-
trial levels. If warming is to be
capped at 2°C, emissions need
to be arrested between 2015
and 2020 and then rapidly re-
duced. But years of denial and
dithering mean this is now
practically impossible. A more
realistic target may be to stabi-
lise warming between 3°C and
4°C and attempt to mitigate
the serious consequences. Even
after the Copenhagen accord
this is the most likely outcome.
At this portion of the global
warming graph, major portions
GREEN WINGS: of entire continents could be
Virgin Atlantic is the parched; half of all species could
world’s first airline to fly become extinct and many large
on biofuel from London and small cities could be in-
to Amsterdam undated, turning hundreds of
millions of people into climate
refugees. And commercial avia-
tion, being the most high-pro-
file industry, will attract much
Most airlines are run on load factors of around 70 per cent, of the opprobrium.
and many operate over short distances. Also, the pace at ‘Two Aviation undeniably pro-
which fuel-efficient aircraft are expected to be introduced
is unlikely to make a significant dent in aviation’s overall per cent’ is motes global warming. Just as
certainly, its impact is increas-
emissions for many years. The same goes for incremental the figure ing—and future technologi-
technological improvements such as retrofitted winglets cal developments may not be
that increase aerodynamic efficiency and reduce fuel us- commonly enough to retrieve the situa-
age. Besides, the gas turbine engine is probably approach-
ing its practical limit of improvement in fuel efficiency. A
quoted by tion. Rather than depend on
carbon trading the aviation
radical redesign to a blended-wing or open rotor configura- the aviation industry should accept the
tion is required. However, since airliners have a life of three
decades or more, a major part of the current fleet will still
industry to simple principle that ‘the pol-
luter should pay’ and plan for
be flying in 2020. That is why industry forecasts of future claim that deep cuts in its own emissions.
fuel efficiency improvements may be overly optimistic. the impact Despite the advent of low-cost
carriers, aviation is still seen
BLUEPRINT FOR A GREEN INDUSTRY of aviation as a preoccupation of the rich.
Strangely enough, the technological tools to avert global
warming already exist. So what then is lacking? Political
on climate Just as the rich countries bear
most of the blame for causing
will as well as agreement on who will cut emissions by change is too climate change, so also avia-
how much. And, most importantly, who will foot the bill?
The game is to demand the maximum while conceding insignificant tion attracts much of the flak.
If the days of short-haul flights
the minimum. Is climate change then inevitable? The to bother that cost less than the taxi ride
question remains unanswered. Although it is still pos-
sible to find climate change skeptics, also known as con- about to the airport are numbered, so
be it. Otherwise, a day might
trarians or naysayers, they seem to be a threatened spe- come when flying would be
cies. Many environmentalists now fear that the world is looked down upon as much as
on course for ‘worst-case’ predictions. There is reason for smoking; airlines could fold up
their pessimism. Carbon emissions from industry, trans- and airports close shop. Im-
port and deforestation, that are mainly responsible for warm- mense challenges have historically triggered more innovation
ing Earth’s atmosphere, have increased dramatically since 2002. and greater efficiencies. Rather than being in denial, the aviation
Global emissions today are thrice the rate of the 1990s. The first industry should reduce its carbon footprint by all means avail-
decade of this century is shaping to be the warmest since instru- able and become part of the solution. SP

16 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


BUSINESS / LCC

The HIGH PRICE


of Low Fare

Lowering fares can be done with the stroke of a pen. Lowering


operating costs of Low Cost Carriers could take months, if not
years—and there is no certainty of success.

T
ILLUSTRATION: RATAN SONAL & PHOTOGRAPH: ABHISHEK / SP GUIDE PUBNS

HE CRISIS-RIDDEN By Joseph Noronha, clearly moving towards low-cost travel.


INDIAN AIRLINE Reading the writing on the wall,
INDUSTRY might Goa most airlines—notably the three biggies,
well reckon 2009 as the Jet Airways, Kingfisher Airlines and Air
year in which the Low India—made known their intentions of
Cost Carrier (LCC) going low-cost with a vengeance (see
model finally became “Low Cost Catches On”, SP’s Aviation,
dominant. The global economic downturn, which has stretched October 2009). The common perception was that a decisive
several dreary months, has forced many corporate travellers shift to the low-cost model would save them from financial
to quit their plush business class seats and shift reluctantly to ruin. Their faith would be touching if it were not so misplaced.
plain economy. With corporate travel declining precipitously, Lowering fares can be done with the stroke of a pen. Lowering
industry experts have begun questioning the very relevance of operating costs could take months, if not years—and there is no
business and first classes. The emerging choice, it appears, is certainty of success.
between economy class and video conferencing. And now even
the government is turning austere, with ministers, politicians TRIMMING THE FRILLS
and officials travelling economy. Although it would be surpris- The term Low Cost Carrier, or low-cost airline—also known as
ing if this fad were to last more than a few months, the market is no-frills, discount or budget carrier or airline—was coined by

Issue 6 • 2009 • SP’S • 17


BUSINESS / LCC
the airline industry to refer to an airline with a lower operating account for a whopping 70 per cent of the domestic aviation
cost structure than its competitors. Such an airline eliminates market. Is another capacity bubble building, this time in the
many traditional passenger services and consequently, is able low-cost segment? Unless revenue exceeds the cost, the out-
to lower fares. The concept, pioneered in the US, soon spread to look is likely to remain bleak. Most likely, yields are set to fall
Europe and subsequently to most of the world. India’s own low- even further. Apart from the problem of the high cost of ATF,
cost revolution was initiated by Air Deccan in 2003. for which a solution does not appear imminent, high airport
However, it is becoming difficult to tell an LCC from a Full charges are generally blamed for high operating costs. Currently,
Service Carrier (FSC). In many respects—fleet, network de- charges for airport usage, navigation and other operational costs
sign, pricing, product offering and even cost structure—the are the same for LCCs and other carriers. This is a practice that
earlier stark differences are fading. While the FSCs are rush- the newly-established Airport Economic Regulatory Authority
ing to embrace the low-cost philosophy, the LCCs seem eager would hopefully review.
to woo passengers by offering more and more amenities. In
other words, both models are moving toward the mainstream WANTED: LOW-COST AIRPORTS
middle. Worldwide, only a few carriers like Ryanair, Spirit and Shaken by the economic downturn, the global airline industry is
AirAsia have stayed true to the no-frills paradigm despite great cutting flab and turning decisively lean and mean. But airports
temptation to go astray. and terminals have been slower to adjust to the new reality. An
India’s pure LCCs, such as IndiGo and SpiceJet, have weath- emerging trend in mature markets is that LCCs have all but ex-
ered the economic turmoil relatively unscathed. However, LCCs hausted viable routes and are beginning to engage in an ever
run by full-service players have proved less resilient. In 2007, Jet more desperate search for new routes to fly. This could create sig-
Airways purchased Air Sahara and re-branded it as low-cost nificant opportunities
JetLite. But Air Sahara wasn’t an LCC to start with. And Jet for new airports if
Airways’ strong pride in its product coupled with the full- they were to adapt to
service minded management’s desire to introduce more the requirements of
comforts on JetLite has almost completely dispensed with Most the LCCs. Most LCCs
low-cost wisdom. In May, Jet Airways launched yet another
low-cost arm, Jet Airways Konnect. Last year, Kingfisher Air- LCCs prefer prefer minimal air-
port infrastructure so
lines took over LCC Air Deccan, rechristening it Kingfisher
Red. This airline doesn’t fit the classic LCC mould either.
minimal airport they can go in for ex-
perimental expansion
Air India, through its low-cost subsidiary Air India Ex- infrastructure without excessive fi-
press, wished to show that going low-cost in the domestic
sector is a game three can play, but financial and regulatory
so they can nancial exposure. An
LCC flight at a ‘frilly’
hurdles seem to have come in the way. This may well turn go in for airport is like a fish
out to be a blessing in disguise because there are hardly any
global examples where the ‘airline within an airline’ model
experimental out of water.
Airport infra-
has worked, particularly for LCCs. Instead, failed ‘internal expansion structure is mostly
low-costs’ dot the landscape.
without fixed and has an eco-
nomic life of perhaps
PROBLEMS OF PLENTY excessive three decades or
Job of an airline executive in India is not for the fainthearted.
The industry is on a rollercoaster. Passenger volumes which financial more. Airline fleets,
on the other hand,
hit dramatic lows a few months ago have at last begun to exposure. An are highly mobile.
look up. But some of this growth is the poisoned fruit of in-
tense competition and mindless price wars. Travellers are LCC flight at a They can switch
routes in a matter of
still paying not nearly enough for the airlines to break even, ‘frilly’ airport is days rendering a par-
let alone recoup their accumulated losses. Consequently, in ticular airport com-
2009, the Indian airline industry, which accounts for just two like a fish out pletely uneconomical
per cent of the global aviation business, is likely to suffer a
collective loss of $1.5 billion (Rs 6,970 crore)—11 per cent of
of water. to operate. Airports
and terminals based
the worldwide total. When times were good, fares were ag- on projected airline
gressively slashed and orders for new airliners were placed by requirements can
the score. Many of these orders have since been cancelled/ thus quickly become
rescheduled. Finance is still not easy to come by, which makes unsuitable. LCCs especially detest delay. Their success depends
life difficult for an industry struggling to cope with pricey Avia- partly on lowering costs by increasing utilisation of aircraft
tion Turbine Fuel (ATF) and high airport charges. Cash flow is through lightning-fast turnarounds. How would true LCCs, and
sometimes insufficient even to meet day-to-day requirements pretenders, survive in India’s increasingly congested airports?
while growth is still a distant dream. It will take some years for For instance, Air India flights have an average turnaround time
the industry to wipe out its accumulated debt and be rid of the of around 50 minutes as compared to 25 minutes for some LCCs.
resultant interest burden. At present, the country does not have the airport capacity to ef-
The FSCs probably hope to cut their losses by going low- ficiently handle the multitude of old and new LCC flights.
cost. However, the original LCCs are also increasing capacity in Some airport developers had been planning separate no-frills
anticipation of better times. Consequently, low-cost seats now terminals, but with almost all domestic airlines turning low-cost

18 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


BUSINESS / LCC

FIGURE IT OUT:
Are the pure LCCs
losing sleep with so many
wannabes treading on their
turf? Not likely.

perhaps entire airports will need to dispense with frills. In Europe, Are the pure LCCs losing sleep with so many wannabes
for instance, Ryanair’s obsession with lowering costs is legendary. It treading on their turf ? Not likely. It is true that LCCs like Spice-
is even prepared to abandon certain routes completely rather than Jet, JetLite, and GoAir are losing some passengers to the newer
pay airport charges that are higher than it feels it can bear. But if the entrants. But the high cost structure of the FSCs will probably
majority of Indian carriers become LCCs, and expect to be charged prevent them from lowering fares enough to compete with
at LCC rates, how will airports generate sufficient revenue? What the LCCs, while still making a profit. A prime requirement of a
implications will it have for the level of facilities they offer at ter- genuine LCC is the ability to relentlessly reduce costs without
minals? Airports will increasingly need to think of subsidising their endangering the fundamentals of the business; for this, cost
operational costs and tapping ancillary sources of income in order cutting needs to become routine. The problem now, according
to remain economically viable. to the International Air Transport Association is that recent
improvements of passenger numbers are ‘partly being achieved
LOW COST—A HIGH PRICE at the expense of much lower yields, as airlines seek to boost
The success of LCCs in weathering the downturn is understand- cash flow by making more cheap seats available’. As the year
ably the envy of the established airlines. While the latter plead ends, some carriers are mulling rational fare increases by as
for bailouts, LCCs like SpiceJet and IndiGo have demonstrated much as 25 per cent.
that profitable enterprises can be run even in difficult times. And Ticket price is undoubtedly a key factor for cost-conscious
imitation is the sincerest form of flattery. But low fare cannot be consumers when selecting a carrier. However, if all airlines turn
equated with low cost. Unless FSCs like Air India reduce man- low-cost the distinction will vanish. Ultimately, the idea of com-
power, operating costs and turnaround times radically, lowering peting solely on cost will lose its relevance as travellers again
fares will only bleed them further. It will also take the break-even start looking for key differentiators in quality. For full-service
load factor completely out of reach. Neither is low cost an excuse airlines, going low-cost and competing with LCCs could help
for low quality. Japanese car makers were able to take on the world stanch losses and improve cash flow. This might be effective as
because they kept costs low while beating the West on quality. a short-term tactic, while the industry awaits the return of good
The same goes for India’s IT sector. And Paramount Airways has times. As long-term strategy, however, the move is fraught with
proved that there still is plenty of scope for premium travel. risk. It could easily turn into a race to the bottom. SP

Issue 6 • 2009 • SP’S • 19


INTERVIEW / CORPORATE

‘India is very
important’

John Nicholson, CEO, Aviation New Zealand, in an exclusive


interview with SP’s Airbuz, outlines the company’s vision for
India and its aviation market

By Our Special Correspondent

A
PHOTOGRAPHS: ABHISHEK / SP GUIDE PUBNS & WWW.AVIATIONNZ.CO.NZ

VIATION NEW ZEALAND CHAMPIONS crease to NZ$2 billion (Rs 6,765 crore) by 2020. There are around
THE country’s companies and product/service 790 aviation and aviation-related companies in New Zealand.
solutions to international audiences, encourag- Most are small and privately owned with a few exceptions such
ing the development of scale through collabo- as Air New Zealand. Airwork, which has a major international
ration and connects international customers growth strategy, would be the second largest company.
to product and service solutions developed in
New Zealand. Aviation New Zealand is a whol- SP’s: What are Aviation New Zealand’s span of activities
ly-owned subsidiary of the Aviation Industry Association of New and collaborations abroad?
Zealand. It is a one stop shop for international companies wishing Nicholson: Officially, Aviation New Zealand was launched inter-
to do aviation business with New Zealand as it provides an um- nationally at the Airport and Airline Expo in Delhi in March 2008.
brella brand under which companies can operate internationally. While this was the international launch, it was quickly clear that
a number of things had to be properly organised in New Zealand
SP’s Airbuz (SP’s): What is the current size and growth rate before Aviation New Zealand could take on offshore assignments.
of the aviation industry in New Zealand? In the early days, a South Pacific focus was adopted, relationships
John Nicholson (Nicholson): Industry exports were estimated were developed with the Association of South Pacific Airlines and
at NZ$800 million (Rs 2,705 crore) in 2006, which is aimed to in- we participated in two of the conferences organised by it. We were

20 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


INTERVIEW / CORPORATE

insights required for


“Aviation commercial success.
New Zealand is When I canvassed
members of Aviation
now focusing New Zealand earlier
this year about the
on three markets, they would
countries, most like to go in for a
collaborative mission
India, Vietnam and India emerged
as the top priority.
and China, During the visit, we
which reflects were able to make
significant progress;
the complexity the time given to the
mission by the senior
of these management of the
markets and visiting companies
was considerable.
the fact that In many cases, the
group meetings pro-
New Zealand ceeded into more
companies detailed one-to-one
meetings (New Zea-
are willing land company and
the most appropri-
to share ate person at the
knowledge airline). We hope to
see several of those
about them we met in India last
month at the New
to help in Zealand stand at the
the success Singapore Airshow,
February 2 to 7, 2010.
EXPAND TO
ACCOMMODATE:
of other We also hope to see
several, including the
The Air Nelson Engineering
facility will be expanded to
companies.” regulators, in New
Zealand in the first
almost twice its capacity to
service the Q300
half of 2010. New
Zealand companies
are following up with
the Indian companies and we are confident that some mutually-
beneficial long term relationships will fructify. A few other New
Zealand companies have already expressed interest in participat-
able to gather groups of companies together to provide a more ing in similar future visits to India.
comprehensive understanding of New Zealand’s aviation capa-
bilities raking in good business for the New Zealand companies. SP’s: Do you have plans to set up a maintenance, repair
Aviation New Zealand is now focusing on three countries, In- and overhaul (MRO) facility in India?
dia, Vietnam and China, which reflects the complexity of these Nicholson: The possibility of a collaborative MRO was raised
markets and the fact that New Zealand companies are willing to by a number of companies we met in November. However, any
share knowledge about them to help in the success of other com- such decision would be made by the New Zealand MRO op-
panies. Encouraging collaboration amongst New Zealand com- erators as developing any such possibility will require careful
panies enables us to offer the scale and breadth of solutions that consideration.
these markets require.
SP’s: India has a policy of establishing Special Economic
SP’s: Where does India stand in the long-term strategy of Zone (SEZ) for the aviation sector. Do you have any
Aviation New Zealand? plans to set up joint ventures with Indian companies in
Nicholson: India is very important. Although we have consid- SEZs in India?
erable information on the market, there is no substitute for be- Nicholson: We received briefings on several aeroparks while in
ing in the market and developing the relationships and personal India. CAPA Aeropark was one such possibility. Ashley Smout,

Issue 6 • 2009 • SP’S • 21


INTERVIEW / CORPORATE
presence of Pacific
“New Aerospace,
component manu-
CTC,

Zealand facturers, aviation


companies designers and a
number of aviation
are following entrepreneurs. The
cluster is develop-
up with ing new capabilities,
the Indian integrating
supply chains, and
with

companies driving the creation


of a state-of-the-art
and we are specialist aviation
confident painting facility with
a South-east Asian
that some and Australasian
reach. The Nelson
mutually- Aviation Cluster is
beneficial looking to develop
a reputation as a
long term one-stop shop for
aviation repair and
relationships maintenance. The
will fructify.” Air Nelson Engi-
neering facility is to
be expanded almost
twice its capacity
EXPERTS IN THE FIELD: to service the Q300
Aviation New Zealand is a one stop shop and Q400 fleets. New
for international companies wishing to
Zealand has consid-
do aviation business with New Zealand
erable expertise in
the replica and res-
toration industries
with concentra-
the Chairman of Aviation New Zealand, is a member of the CAPA tions of companies in Ardmore, Dunedin, Mandeville, Masterton,
Aeropark Eminent Council. We are keen to understand these Omaka, and Wellington. Capabilities ranging from parts to com-
concepts and their relevance for New Zealand. A few of the In- plete aircraft include antique aircraft, classic aircraft, World War
dian companies are discussing long-term relationships with I fighters and war birds.
some of the New Zealand companies but the finer points
still need to be worked out. However, New Zealand com- SP’s: How successful has fractional ownership been in
panies are considering new ways of doing business in India general aviation in New Zealand?
and achieving a greater degree of market engagement. Nicholson: This is not common in New Zealand as the economy
is too small for fractional ownership to be a significant market.
SP’s: What are the products and service solutions you plan
to promote in India? SP’s: What is the scenario with respect to pilot training in
Nicholson: At this stage, it is ambiguous but pilot training and en- your country?
gineering was one of the areas covered in-depth on the mission. Nicholson: There is a well-established system which ensures
cadets move from ab initio training through to command posi-
SP’s: Has the global economic downturn affected the avia- tions in airlines and other aviation companies. There is an open
tion sector in New Zealand? What steps, if any, have been and transparent pilot training process, which is overseen by the
taken to cope with its adverse effects? New Zealand Civil Aviation Authority. Companies that train in-
Nicholson: Some of the companies with a pure New Zealand ternational pilots must, among other things, deliver qualifications
focus have been struggling. However, there have been a number that are approved by the New Zealand Qualifications Authority,
of New Zealand companies developing niche products with real be signatories to the Code of Practice for the Pastoral care of In-
international demand. ternational Students, and be signatories to the Aviation Indus-
try Association Code of Practice for Professional Pilot Training.
SP’s: What is the status of aviation entrepreneurs in New International students studying in New Zealand have their fees
Zealand? guaranteed by the Government so that they are fully protected in
Nicholson: The Aviation Industry Cluster, previously Waikato the unlikely event of closure or suspension of the activities of the
Aviation Cluster, is the centre for General Aviation based on the pilot training school. SP

22 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


RETROSPECTION / ACCIDENT ANALYSIS

COLLISION
In The Corridor

The Charkhi Dadri disaster, some observers claim, was waiting to


happen because there had been several near-misses mostly
involving airlines from the former Soviet republics, whose flight
crew lacked sufficient familiarity with English

T
WO DECADES OR SO All 349 passengers and crew on board the
AGO, it was unlikely that By Joseph Noronha, two airliners were killed, making it the
the name Charkhi Dadri Goa deadliest mid-air collision in history. Colli-
would have elicited any sions between military aircraft or between
reaction beyond the bor- light aircraft have occurred but the last
ders of Haryana, but in collision involving two commercial airlin-
ILLUSTRATION: RATAN SONAL

November 1996, the town gained worldwide no- ers had taken place more than 17 years earlier on August 11, 1979,
toriety as the site of India’s worst ever air accident. The result of when two Aeroflot Tupolev Tu-134s had collided over Ukraine kill-
a merging of two adjacent villages, Charkhi Dadri is a small town ing 165 people.
about 74 km as the crow flies from Delhi airport. The evening sky
was lit up as two fireballs plunged to the earth about 4 km below ROUTINE BECOMES DISASTROUS
when a Saudi Arabian Airlines Boeing 747-168B and an Air Ka- Dusk was approaching as the Saudi Arabian Airlines Flight 763
zakhstan Ilyushin Il-76 collided in the skies above Charkhi Dadri. departed Delhi’s Indira Gandhi International Airport at 1832

Issue 6 • 2009 • SP’S • 23


RETROSPECTION / ACCIDENT ANALYSIS
hours on November 12, 1996, and headed for Dharan in Saudi more familiar with Russian. And since the Il-76 instruments were
Arabia. It had 312 people on board, including 23 crew members. calibrated in the metric system, the internationally recognised
Captain Khalid Al Shoubaili was in command. The passengers feet-based instructions of the controller had to be converted into
included 215 Indians mainly blue collar workers in search of metres. This may have taken some time. Seconds before impact,
employment in Saudi Arabia and several Hajj pilgrims. Flight the captain had asked the radio operator what altitude they were
763 was cleared to climb on a westerly course (270°) from the supposed to be at.
Delhi VOR Navigation Beacon (DPN) on Airway G452 to FL 140 In the immediate aftermath of the accident, a few newspapers
(14,000 ft). Although it wished to climb further, this request was claimed it was a disaster waiting to happen because there had
not granted by the Delhi Air Traffic Control (ATC). The reason been several near-misses in India’s skies, most involving airlines
was that a reciprocal flight was expected in the same corridor from the former Soviet republics, whose flight crew lacked suffi-
at a higher level. cient familiarity with English.
Kazakhstan Airlines Flight 1907, an Il-76 chartered by a Kyr- Apart from the linguistic aspect, the other problem was lack of
gyzstan-based company, had just 27 passengers and 10 crew mem- adequate infrastructure. Delhi airport was equipped with an out-
bers on board. The flight, with Captain Gennadi Cherepanov in dated primary surveillance radar so the approach controller did
command, took off from Chimkent in Kazakhstan and was des- not have altitude information available. Also, unlike many other
tined for Delhi carrying mainly Kyrgyz nationals on a shopping ex- airports which have separate corridors earmarked for departures
pedition. While descending on Airway G452, on an easterly course and arrivals, the Delhi airport had a single corridor for both. How-
(090°), the crew contacted Delhi approach 74 nm from the DPN ever, though separate corridors for inbound and outbound traffic
beacon. The approach controller instructed the flight to descend drastically reduce collision risk, they may not always be available
to and maintain FL 150 (15,000 ft). due to a variety of reasons, and Delhi’s Common Corridor was by no
Around 1840 hours, the Il-76 reported having reached FL 150, means unique. The International Civil Aviation Organization has
but later Flight Data Recorder (FDR) analysis showed it at 16,000 specified that the minimum en-route separation between aircraft
ft at the time. The Delhi approach controller responded: “Roger, should be 5 nm horizontal/1,000 ft vertical. For this to guarantee
maintain FL 150, identified traffic 12 o’clock, reciprocal Saudia safety the aircraft crossing each other should be at their allotted
Boeing 747, 14 miles. Report in sight.” Another aircraft airborne height; there is practically no room for error. Could the controller
in the vicinity later reported that there was considerable cumulus have ensured some horizontal separation rather than relying sole-
clouding in the area, so spotting the reciprocal aircraft, even one ly on the minimum specified 1000 ft vertical separation? Could he
as huge as a Boeing 747, may not have been easy. At this stage, have asked the Il-76 to maintain a higher altitude, say 16,000 ft, till
both aircraft, although travelling directly towards each other, were the crossing was safely achieved? ATC transcripts showed that the
supposed to be separated by 1,000 ft vertically. When the Il-76 Ilyushin crew never confirmed to the controller that they had re-
crew asked for a repeat of the distance, the controller replied, “14 ceived or obeyed the instruction to maintain 15,000 ft. Could it be
miles now”. Since this call was not acknowledged, the controller that the Il-76 captain misinterpreted the ATC’s call—“Traffic is 13
again warned: “Traffic is 13 miles, level 140”. This time the crew miles, level 140”—as clearance to descend to FL140, till the radio
acknowledged the transmission. The Il-76 was again informed by operator clarified the point? The transcripts also showed that the
the Delhi controller, 38 seconds before impact, that the Boeing 747 Il-76 crew were first informed about the approaching Boeing 747
was just eight miles away, approaching the Ilyushin at 14,000 ft. just 68 seconds prior to the collision. On the other hand, the crew
However, according to the Ilyushin’s FDR, 26 seconds before the of the Boeing 747 were not warned at all about the reciprocal traf-
collision, the plane was at 14,190 ft, just above the 14,000 ft altitude fic. The Boeing tape transcript showed that the pilot, unaware of
that the approach controller had assigned to the Saudi plane, and the approaching Il-76, glimpsed the airliner only moments before
still descending. In the cockpit of the Il-76, the radio operator grew impact when it was too late to take evasive action.
alarmed. He twice urged his captain to gain height to 15,000 ft but A head-on collision with another aircraft is every pilot’s worst
it was too late. nightmare. According to the Commission of Inquiry, “The root and
On the approach controller’s radar screen the rapidly converg- approximate cause of the collision was the unauthorized descend-
ing blips of the two airliners merged. The planes had collided al- ing by the Kazak aircraft to FL140 and failure to maintain the as-
most head-on. The tail of the Il-76 had sliced through the left wing signed FL150.” Whether this was due to flying accuracy errors,
of the Boeing 747. The Boeing lost an aileron and, as a result, went communication problems or turbulence will never be known.
into a steep, descending spiral. All passengers and crew on board As a result of the accident, changes were introduced in the air
both flights perished. traffic procedures in Delhi’s airspace, fulfilling a long-felt require-
ment for separation of inbound and outbound aircraft, through the
COMMON CORRIDOR creation of separate air corridors. In addition, the planned instal-
The official Commission of Inquiry held in Delhi determined that lation of secondary surveillance radar equipment at Delhi airport
the Il-76 had descended from the assigned altitude of 15,000 ft to was expedited. Besides bearing and distance, this system provided
14,500 ft and subsequently to 14,000 ft, perhaps even below that, controllers aircraft altitude data. The Directorate General of Civil
before it started climbing, putting it directly at the height of 14,000 Aviation (DGCA) made it mandatory for all aircraft flying in and
ft assigned to the Boeing 747. This fatal lapse in operating proce- out of India to be equipped with an Airborne Collision Avoidance
dure could have been due to the Kazakh pilots’ unfamiliarity with System (ACAS). The ACAS enables pilots to detect the presence of
English as they were relying entirely on their radio operator for nearby aircraft without relying on the Air Traffic Control. It is a last
communication with the ATC. Actually, there were two types of line of defence, electronically detecting and tracking other aircraft
translations going on between the crew of the Kazak plane. All ra- in the vicinity to enable avoidance of a potential mid-air collision.
dio exchanges between the approach controller and radio operator The accident triggered the process of making ACAS mandatory in
were in English while the captain and his co-pilot were probably other parts of the world as well. SP

24 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


FactFile
Fact File
Helicopter Flight Simulator
MASTERING
THE CHOPPER:
(Left) Editor of SP’s
Airbuz Air Marshal
B.K Pandey reviews
the capabilities of
the TruFlite 342
Simulator of Frasca
International acquired
by Shaurya Flight Sim
in Delhi; (right) Wing
Commander (Retd)
Pragat Singh, Chief
flying Instructor of
Shaurya Flight Sim Shaurya Flight Sim is a professional flight training
organisation primarily providing training to helicopter pilots

B
EGINNING OF 2009, DELHI-BASED CHARTERED SELF-SPONSORED TRAINING COURSES OFFERED BY SFS:
aviation company Shaurya Aeronautics, owned by en- • Simulator Training for Private Pilot Licence (Helicopter)
trepreneur and experienced Commercial Pilot Sandeep • Simulator Training for Commercial Pilot Licence (Helicopter)
Saraf, launched the country’s first helicopter simulator • Simulator Training for Instrument Rating (Helicopter)
training facility at Safdarjang airport. The training facility has been • Recurrent Training for Competency Checks on the Simulator/
set up in partnership with an Italian company, Frasca Internation- Flying Training Device
al that manufactures flight training equipment for airlines, flight • IR Renewal on the Simulator/ Flying Training Device
schools and military organisations worldwide. Founded in 1958, • Type Endorsement/ Type Rating on the Simulator/ Flying
Frasca has delivered over 2,200 devices to over 70 countries. Training Device
With an initial investment of Rs 10 crore, the new training fa- • Training on Special VFR
cility at Safdarjang Airport is an independent company registered
as Shaurya Flight Sim (SFS). Currently offering simulator training FEATURES & CAPABILITIES OF THE FRASCA SIMULATOR:
on Bell 206 and Bell 407 helicopters in all weather conditions by • Computer Generated Instrumentation.
day and night covering all emergency procedures, SFS is a profes- • Multiple aircraft/panel configurations.
sional flight training organisation primarily providing training to • Fast and simple conversion.
helicopter pilots. As per Wing Commander (Retd) Pragat Singh, • Allows for training all aspects of flight including the following:
the Chief Flying Instructor, the company has the vision of being - Translational flight
“the best in Aviation Simulation Training in Asia by 2010 and one - Auto-rotation
of the top five in the world by 2015”. - Retreating blade stall
According to the Rotary Wing Society of India, there were 12 - Settling with power
fatal helicopter accidents in the country between 1970 and 2008. - Tail rotor failure
Eight of these were attributed to lack of practice in flying solely - Hover
with the help of instruments when loss of visual reference oc-
curred. Regular and adequate practice on the simulator will allow ADVANTAGES OF THE FRASCA SIMULATOR
pilots to hone their skills at an extremely low cost and help reduce The Helicopter simulator has a number of unique features and ad-
such accidents. vantages. Training sessions can be recorded and replayed for the
The new facility comes as a welcome relief for the 1,000 or so benefit of the trainee pilot during debrief after the mission. The
helicopter pilots operating in India who for renewal of licence, simulator has three projectors and a 220 degree radial and a 60 de-
PHOTOGRAPHS: ABHISHEK / SP GUIDE PUBNS

have to undergo mandatory simulator training abroad every year gree elevation view which gives a realistic 3-D effect. The simulator
at high costs to the operator. The helicopter fleet is growing and can be configured for day, night, dusk operation, and can simulate
more pilots will be added to the pool with the passage of time. Be- all weather conditions and emergencies. It is a low noise machine
sides reducing the cost of training by 60 per cent SFS will save time that facilitates easy communication between student and instruc-
and improve the availability of pilots to the operator. tor. The simulator is ready for use immediately after it is switched
All training courses offered by SFS are designed and developed on. Unlike an aircraft, there is no need to warm up, or fly to train-
to fully meet the operational standards and requirements laid ing area also there are no delays due to clouds or bad weather con-
down by the Indian Directorate General of Civil Aviation. SFS has ditions. These help reduce wastage of time.
also obtained certification from the Federal Aviation Administra- Taking advantage of its strategic location in the Asian region,
tion, the American regulatory authority, for its training devices SFS is looking at exploiting the huge business potential in South
and courses offered. East Asia and the Middle East. SP

Issue 6 • 2009 • SP’S • 25


ANNUAL ROUNDUP

2009: The Year That Was


AERO INDIA A RESOUNDING SUCCESS
A whopping 303 companies from abroad along
with 289 from India converged at Air Force
Station, Yelahanka, Bengaluru from February
11 to 15 eyeing a chunk of the $30 billion (Rs
1,39,275 crore) pie on offer from the Indian
government in return for military aircraft and
other defence related equipment. In the con-
text of the overall objective of Aero India, the
value of flying display ought to be viewed in
the correct perspective vis-à-vis the need to
facilitate business dialogue which is relatively
more important. A new feature introduced at
Aero India 2009 was the 588 business-to-busi-
ness meetings held under the aegis of the CII,
including 350 interactions between Indian
and foreign companies. This concept was in
consonance with the overall philosophy of
promoting domestic and international busi-
ness and trade.

NEW HEAD FOR HAL


In April, Ashok Nayak took over as the
PHOTOGRAPHS: WWW.BOEING.COM, WWW.SKYSCRAPERCITY.COM, WWW.USTDA.GOV & SP GUIDE PUBNS

15th Chairman of Hindustan Aeronautics


Limited (HAL) from Ashok Baweja. Hav-
ing worked as the Managing Director of
HAL’s Bangalore Complex since July 2007,
Nayak was in charge of seven vital divi-
sions, including fleet serviceability and
multiple projects such as the licenced
production of Hawk Advanced Jet Train-
ers as well as the Tejas Light Combat Air-
craft and Intermediate Jet Trainer that are
currently under development. In another
significant development, HAL signed an
agreement with Boeing for the production
of flaperons for Boeing’s 777 series com-
mercial jetliner. The 777 flaperons are a
highly complex composite assembly that
control the aircraft in flight. Referred to
as ‘control surface’, flaperons work both
as ailerons to control roll and as flaps to
augment lift. HAL is expected to deliver
its first flaperon assembly to Boeing with-
in the next few years.

26 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


ANNUAL ROUNDUP

PARIS AIR SHOW: THE CENTENARY CELEBRATIONS


From June 15 to 21, the audacity of hope took centre stage at the Paris Air Show with industry players and pundits
celebrating the event’s centenary year at the Le Bourget Exhibition Centre. French Prime Minister Francois Fillon, ac-
companied by Defence Minister Herve Morin, officially launched the exhibition, held under a cloud of dismal financial
prospects and pelting rain. There was no denying the sombre mood and niggling sense of gloom but organisers of the
biggest aerospace event in the global calendar appeared unfazed, deftly parrying queries about the conspicuous absence
of some big names, lacklustre orders and fears of a low turnout. A week later, when the curtains came down after the
spectacular celebrations culminated in dramatic historical fly-pasts, the sigh of relief was palpable. Indian participation
at the Paris Air Show 2009 was limited to a few exhibits by HAL. Unfortunately, there were no flight demonstrations by
any Indian aircraft at the event—perhaps a fallout of the financial crunch triggered by global economic recession. Every
year since 2003, Indian aircraft have featured in flight demonstrations at the Paris Air Show. This year, however, the in-
digenously developed Advanced Light Helicopter Dhruv, a regular at the show, was missing.

AIRPORT ECONOMIC REGULATORY AUTHORITY tor the set performance standards relating to quality, conti-
SET UP IN INDIA nuity and reliability of services at these airports. Yashwant S.
In May, the Airports Economic Regulatory Authority (AERA) Bhave, an IAS officer from the Maharashtra cadre, took over
was established by the Government of India. In terms of the as the first Chairperson of AERA. In effect, the AERA will cov-
Airports Economic Regulatory Authority of India Act, 2008, er four dimensions of airport operations: tariffs, quality of in-
the AERA has been assigned the functions of determining the frastructure and service, operational efficiency and competi-
tariffs for aeronautical services rendered at all major airports, tion. Effective regulation would ensure that right investments
including for air navigation services, the fixation of Develop- are made to provide quality service at reasonable prices while
ment Fees and Passenger Service Fees. AERA will also moni- ensuring a fair return on investments.

Issue 6 • 2009 • SP’S • 27


ANNUAL ROUNDUP

: DUBAI AIR SHOW: A SILVER LINING


A marketing carnival and a means for cultural, coexistence, knowledge as well an opportunity for acquaintance with a
dash of spectacular military aviation display. In these times of recession, a silver lining in the dark clouds covering the
aviation sector the world over aptly describes the Dubai Air Show, held from November 15 to 19. His Highness Sheikh
Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai, and General
Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE
Armed Forces, inaugurated the 11th Dubai Air Show. The Dubai Air Show opened with 890 participating companies
from 47 countries, a 10 per cent rise in exhibitors from the earlier show in 2007.

: INDIA-US AVIATION PARTNERSHIP SUMMIT


In December, the second India-US Aviation Partnership Summit concluded in Washington D.C. on a high for the other-
wise in the low aviation sector for both the countries. With over 80 companies participating in addition to government
delegations, the summit highlighted that there are ample opportunities for cooperation in the field of civil aviation
infrastructure and upgrading the non-metro airports, Air Traffic Control system, general aviation, aerospace and MRO
between the two nations. The Summit included sessions on different aspect of the civil aviation sector, the opportunities
and challenges it faces such as air safety, efficiency and future air navigation systems, development and modernisation.
The summit also covered issues pertaining to airport Infrastructure development and financing with inputs from the
AAI, the FAA and major private sector players. The overall role of the DGCA, aviation security, aviation environmental
best practices and aviation training in India were some of the key focus areas of the summit. India was represented by
the Secretary, Ministry of Civil Aviation, M. Madhavan Nambiar, the Director General of Civil Aviation, Dr Naseem Zaidi,
and the Chairman of AAI, V.P. Agrawal.

28 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


ANNUAL ROUNDUP

: EMBRAER ON A ROLL
During the third quarter of 2009, Embraer delivered 57 jets, 29 of which were to the commercial aviation segment, 27
to executive aviation, and one to defence, representing an increase of 18.8 per cent over the 48 jets delivered during
the same period in 2008. On September 30, the company’s firm order backlog totalled $18.6 billion (Rs 86,330 crore),
or 6 per cent less than the $19.8 billion (Rs 91,900 crore) recorded on June 30. The year ended on a positive note for
Embraer with a record sale of 153 planes.

: PILOTS ON SICK LEAVE EN MASSE : AIR INDIA STRIKE


Chaos prevailed in all major domestic airports from About 400 executive pilots of the state run
September 8 to 13 as more than 400 pilots of the second carrier were involved in the flash strike to
largest carrier Jet Airways reported sick to protest the protest against the reduction of their flying
sacking of its pilots in July. The five-day strike, which allowance. Air India reportedly cut down
left hundreds of passengers stranded and created both up to 50 per cent of the pilots’ Productivity
financial loss and ill-will, ended after the orders of re- Linked Incentives (PLI). However, the pilots
instatement of the pilots were announced. During the didn’t issue a strike notice earlier as the Air
five-day impasse, Jet Airways had to cancel 1,058 flights India management did not discuss this issue
leading to a loss of Rs 200 crore. The strike was seen as with them before announcing the cut. Indian
an example of touchy labour relations where antiquat- Commercial Pilot’s Association also called all
ed labour laws place limits on hiring and conditions for other members on September 30, for a meet-
retrenchment, hurting competitiveness and leading to ing with Air India to sort out the rate disputes.
worker unrest. India’s labour laws, rated by the World Air India’s agitating pilots called off their five-
Bank, as among the most rigid, blunt the competitive day-old stir following a stern ‘return to work
edge of firms and spark tensions as layoffs bite in a or else’ warning by the government.
sluggish economy.

Issue 6 • 2009 • SP’S • 29


ANNUAL ROUNDUP

: LAUNCH OF DECCAN CARGO


Cargo airline Deccan 360, the latest venture by aviation entrepreneur G.R. Gopinath, was launched in May. The idea
was to ‘get operations started, have slots, infrastructure in place’ to boost investor confidence in the company. Deccan
360 launched its first flight between Delhi and Hong Kong with an Airbus SAS-made A310 freighter and plans to add
two more A310s over the next four months to operate flights on three other sectors including Dubai. Deccan Express
Logistics has also signed an agreement with infrastructure development firm GMR group for setting up express cargo
operating facilities at Delhi and Hyderabad airports. These two, along with the new multi-modal international cargo and
passenger hub at Nagpur, would form an extensive multi-modal storage, transportation and delivery network to bring
connectivity to every corner of the country, Gopinath said.

: AIR INDIA GETS NEW : SEPARATE CORRIDORS


CHAIRMAN FOR HELICOPTERS
On May 1, Arvind Jadhav, a 1978 In order to minimise traffic
batch officer of the IAS from Karna- chaos at the airports, where
taka cadre, was appointed full-time wide-bodied aircraft share
Chairman and Managing Director their space with choppers,
of National Aviation Company of helicopters will soon have
India Limited, which was created separate corridors for land-
with the merger of Air India and ing at all major airports in
Indian Airlines. Jadhav has joined the country. An Airports Au-
at a time when National Aviation thority of India (AAI) official
Company of India Limited has been said the Directorate General
facing major challenges. Since his of Civil Aviation (DGCA) was
appointment, the management has also planning to allocate a
shown willingness to discuss the is- separate corridor for defence
sue of making this Public Sector Un- choppers at airports, espe-
dertaking viable with all the recog- cially for more efficient and
nised unions in Air India. secure operations.

30 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


ANNUAL ROUNDUP

: BOEING IN INDIA
Aerospace major Boeing forecast that the Indian market will require 1,000 commercial jets in the next two decades—cor-
responding to more than 3 per cent of Boeing Commercial Airplanes’ predicted global market share, thereby making India a
$100 billion (Rs 4,64,170 crore) market in 20 years. Boeing India-President Dinesh Keskar shared the company’s market data
and forecast which focused on Boeing’s analysis of commercial aviation market in India.

: US-INDIA AVIATION COOPERATION PROGRAMME


A US-India Aviation Cooperation Programme (ACP) has been
established to provide a forum for unified communication
between the Indian government and US companies in India.
The programme will identify and support India’s civil aviation
sector modernisation priorities, and would be a joint effort be-
tween ACP member-companies including Boeing, Pratt and
Whitney, GE and Honeywell. The two countries are working
on a Bilateral Aviation Safety Agreement (BASA) for mutual
acceptance of aeronautical products developed in either coun-
try. A limited BASA process is expected to be completed by
year 2010. The agreement will include upgrading skills of cer-
tification experts in the DGCA. It also proposes assessment of
Indian authorities and industry capabilities to undertake certi-
fication and production work on a sustained basis to meet the
standards of the US Federal Aviation Administration (FAA).
As part of the process, FAA will also conduct a ‘shadow cer-
tification exercise’ with DGCA officials on a sample product infrastructure, safety, enhancing air service quality, operational
that will focus on assessing if India’s standard certification pro- efficiency, flight security, airspace management and system ca-
cedures are acceptable for top quality aeronautical products. pacity will be covered under the programme. It will also facili-
Funded by the US Trade and Development Agency (USTDA), tate and coordinate aviation industry training and technical
the programme will cost $371,700 (Rs 1.7 crore). Issues such as ties between the two countries.

—Compiled by SP’s Team

Issue 6 • 2009 • SP’S • 31


Finally...

A DREAM Nearly two-and-a-half


years after its

Takes Wings
formal unveiling, the
Dreamliner is now
a reality

E
ARLY 2004, SPURRED BY ITS ongoing rivalry with cost of air travel on account of reduced operating expenses and
Airbus, which was struggling to resolve problems with lower levels of emission. As the airline industry is responsible for
the A380 Superjumbo, Boeing embarked on the de- pumping huge quantities of Carbon Dioxide into the atmosphere
velopment of the 787 Dreamliner. In response, Airbus with deleterious effects on the climate, it understandably came
commenced development of the A350, later designated A350 under the scanner at the international conference at Copenha-
XWB (Extra Wide Body). gen in December 2009.
Boeing planned to deliver the first 787 Dreamliner to its Technological innovations are, however, often accompanied
launch customer All Nippon Airways in the first half of 2008. Un- by surprises—sometimes unpleasant ones. So has been the case
fortunately, the 787 programme was afflicted by repeated delays, with the Dreamliner. The project has proved to be phenomenally
with the first flight postponed five times in the past two years, complex and a challenge more daunting than Boeing could have
imposing a colossal financial penalty on the company apart from ever anticipated. Apart from the complexities and uncertainties
damage to reputation and credibility. of handling new materials on a large scale, the project also suf-
By virtue of its size and capacity, the massive Airbus A380 fered from a troublesome supply chain consisting of sub-contac-
carries more passengers than the Boeing 747 and is restricted to tors operating at different levels of expertise, scattered worldwide
operating from a limited number of airports. The Dreamliner con- to supply over four million components for the Dreamliner. Other
cept was evolved by Boeing to defeat this very limitation—it has impediments to the programme were glitches in development of
been designed to carry fewer passengers, but to a wider range of software, incorrectly installed fasteners, ill-fitting parts and evi-
airports rather than a large number of people to a limited number dence of stress levels on the airframe higher than those predicted
of only the major hub centres. The first prototype has a capacity of by the design software model.
250 passengers and a range in excess of 14,000 km. Other versions Of particular concern was evidence of stress on the airframe
on the pipeline will have passenger capacity of 210 to 290 and in the area where the wings are mounted on the fuselage. The
range of around 15,000 km. The Dreamliner, designated a game- discovery having been made around the time when Air France
changer and trend setter for future airliners, was to be the most 447 disintegrated while flying over the Atlantic, there was no way
prestigious airliner programme for Boeing. Despite the antici- that the Boeing management would risk test flying the new air-
pated price tag, possibly in excess of $200 million (Rs 925 crore) craft with a known structural flaw. An eight-week strike in 2008
a piece, it proved to be the fastest selling passenger jet in history by the 27,000 Seattle-based production workers further aggra-
with orders of around 850 aircraft from 56 customers across the vated the problem.
world even before the formal roll out. The Dreamliner programme was fairly close to the original
The technology employed and the design parameters of schedule up to the point of “roll out” in August 2007. Soon after,
the 787 Dreamliner which, it is hoped, will usher in a new era the programme was beset with difficulties and delay that were
of air travel, are significantly different from conventional airlin- irksome to some customers but, ironically, proved beneficial to
ers. The fuselage and wings are made of lightweight materials, some others. The latter, on account of the global economic down-
PHOTOGRAPH: WWW.BOEING.COM

such as carbon composites, instead of aluminum and titanium. turn and the consequent distress in the airline business, were not
The airframe built with new materials is believed to provide in a hurry to induct the new machine and were happy to claim
more volume inside the fuselage and better structural stability rather hefty delay-related compensation.
than metallic aircraft. More than 50 per cent of the aircraft by Finally, nearly two-and-a-half years after its formal unveiling,
weight consists of new lightweight materials that make it less the Dreamliner was transformed into reality as it took to the skies
heavy compared to other conventional aircraft of comparable on December 15 and sent Boeing’s hopes soaring once again. SP
size and capacity, thus reducing fuel consumption by 20 per cent.
This technology fulfills the twin strategic objectives of lowering —By Air Marshal (Retd) B.K. Pandey

32 • SP’S • Issue 6 • 2009 G www.spsairbuz.net


451964-2009
SP GUIDE PUBLICATIONS
WIDENING

N E W
H O R I Z O N S . . .

IN THIS EDITION
• Indiaʼs Homeland Security & Ministry of Home Affairs Elements
• IDS Headquartersʼ role in Procurement Process elaborated
• Eventsʼ Reference - Special Insert
M
Proc inistry
urem of H • IN
ent ome Indiaʼ THIS
Proc Affa s Hom EDIT
ess IO
elab irs Elem eland N -
orat ents Secu
ed • • rit
Even IDS Heay &
tsʼ Re dq
fere uarter
nce sʼ
- Sp role in
ecia
l Inse
rt

Get your copies via -


www.spsmilitaryyearbook.com

200����������� 8 info@spsmilitaryyearbook.com

2009

�������
�������
2009
20 ������
������
08

������
��������� ��
������
�������

www.spguidepublications.com
� � � � � � � � � � �
� � � � � � �


� � � � �
� � � � �
� � � � �
60% lower
NOx emissions.

Another leap
forward for
LEAP technology.
LEAP is CFM’s* program to develop and mature the definitive
engine for the next generation of aircraft. CFM reducing emissions
isn’t news. These figures are. A breath-taking 50%-60% cut in
NOx emissions compared to existing regulations. All achieved
through our revolutionary TAPS II (Twin Annular Pre mixing
Swirler) combustor. And brought to you in our new LEAP-X
engine, on target for certification in 2016. See the technology
that is lifting it to new heights. Visit www.cfm56.com/leap
CFM, CFM56 and the CFM logo are all trademarks of CFM International, a 50/50 joint company of Snecma and General Electric Co.
*

SP.AVIATION_NOX_DOLPHIN_267x210.indd 1 12/11/2009 15:03

You might also like