Congress Notified Of Potential Apache Block III Sale To India

News

AWIN First Dec 28 , 2010

Neelam Mathews

NEW DELHI

The U.S. Defense Security Cooperation Agency (DSCA) has notified Congress of a possible Foreign Military Sale of 22 AH-64D Block III Apache helicopters to India, along with related equipment and training. The complete package would be worth approximately $1.4 billion. The Indian government had requested proposals from several foreign suppliers, including Boeing, for 22 attack helicopters. The Indian Air Force has completed field trials for the Apaches to replace its Mi-26s. However, a final downselect has yet to be made; DSCA says it notified Congress of the potential sale “so that, in the event that the Boeing-U.S. Army proposal is selected, the United States might move as quickly as possible to implement the sale.” If Boeing wins the competition, India will request a direct commercial sale of 50 T700-GE-701D engines; 12 AN/APG-78 Fire Control Radars; 12 AN/APR-48A Radar Frequency Interferometers; 812 AGM-114L-3 Hellfire Longbow missiles; 542 AGM-114R-3 Hellfire II missiles; 245 Stinger Block I-92H missiles and simulators; global positioning system/inertial navigation systems; communication equipment; spare and repair parts; tools and test equipment. “The Apache Longbow is the only available combat helicopter with a spectrum of capabilities for virtually any mission requirement,” said Vivek Lall, head of Boeing Defense, Space and Security in India, earlier this year. “We believe it is uniquely suited to meet the commander’s needs, including reconnaissance, security, peacekeeping operations, and lethal attack.” Apart from Boeing, contractors involved in the sale would be Lockheed Martin, General Electric, Longbow Limited Liability Corp. and Raytheon. There are no known offset agreements proposed in connection with the potential sale, DSCA says.

India strengthens coastal and border security

World Conflict Guide

Neelam Mathews

New Delhi

Internal security is a growing concern in India, as the country deals with the persistent Naxalite insurgency and with a large, and largely unsecured, coastline and regional waters, which terrorists, smugglers and pirates regularly threaten. Add to this the relatively unsecured land borders where dangerous activities flourish. The government is, consequently, increasing funding to strengthen coastal and border surveillance and to provide the necessary equipment and personnel for security enforcement. Procurement opportunities will emerge from the present budget of $14.7 billion, which is expected to increase to $25-28 billion over the next five to seven years. Planned expenditures cover intelligence gathering, law enforcement and counterterrorism activities, critical asset protection, government infrastructure protection, border defense and digital-network security. The police, generally, are understaffed, ill-equipped and poorly motivated, and in need of training and new technology. The Border Security Force (BSF) responsible for guarding India’s land borders during peacetime and preventing crime, is being transformed into a technology-driven force, says Raman Srivastava, director general. India’s Marine Command troops practice boarding and seizing a ship. Coastal defense is a growing security concern.Credit: INDIAN NAVY “We are pursuing modernization,” says Srivastava. Procurement plans include battlefield surveillance radars, long-range reconnaissance and observation systems, and biometric identification machines. The BSF is also looking at equipment for bomb disposal. The BSF may soon be given the added responsibility of guarding the unfenced 1,643-km. (1,021-mi.) border with Myanmar to stop infiltration of arms, drugs and militants who maintain training centers in that country. This follows India’s concern about Myanmar’s plan to construct a six-lane highway connecting Kunming in Southeastern China and Chittagong in Bangladesh. The highway will pass less than 20 km. from Mizoram in Northeastern India. The National Security Council, which monitors political, economic, energy and strategic security concerns, is workingwith the military on a plan to improve coastal defense. India’s 7,500-km. coastline, with 1,197 islands and 500,000 fishing boats, creates challenges for surveillance. The infiltration of ten Pakistani terrorists who sailed into Indian waters from Karachi to attack Mumbai two years ago exposed the vulnerability of the littorals and led to an awareness of the need for capabilities, infrastructure and human assets to improve security. Implementation of a Coastal Security Scheme has been underway in 13 states and territories since 2005 to strengthen surveillance. Under the plan, assistance is being given to create 73 police stations—64 of which are operational—97 checkpoints and 58 outposts. The plan is to equip these installations with 204 boats, jeeps and motorcycles. Thus far, $89 million has been approved for nonrecurring expenditures by the government. Interceptor boats valued at $73 million are being procured through the Goa Shipyard and Garden Reach Shipbuilders of Kolkata. A contract has been signed for 84 boats in the 5-ton class and 110 boats in the 12-ton class. An additional ten boats have been ordered for use in the Andaman Islands. The government is procuring vessels for the coast guard and plans to add 100 ships and aircraft by 2015. “Around 200 coastal police stations will be set up and a chain of radars at 46 stations for surveillance,” says Rajendra Singh, deputy director general of the coast guard. “Long-range identification and tracking of ships is being implemented and will be commissioned shortly.” A uniform registration scheme with smart ID cards (including radiofrequency identification tags) is being looked at, along with separate sea lanes for fishing boats and merchant ships. India is heavily reliant on seagoing commerce for imports and exports. Protection of the sea lanes is thus a priority for the navy. In response to increasing incidents of piracy in the Gulf of Aden, the navy started antipiracy patrols there in October 2008 with one ship, and has since thwarted 23 attacks. Saab recently received an order from the Indian Maritime Authority for supply of a surveillance system for the entire coast. The $16-million order is for sensors that will be installed along the coast and equipment for regional and national control centers. The project will be completed in 18 months. Saab is working on the system with Indian partner Elcome Marine Services. “Our systems for monitoring sea traffic have been installed on several coasts in the world and along inland waterways in Europe and China,” says Gunilla Fransson, head of Saab’s Security and Defense Solutions business, touting the effectiveness of the technology.

India boosts investments

Top Defense Budgets
India Slates Double-Digit Spending Increase
Neelam Mathews
India is expected to increase defense spending for Fiscal 2011 (April-March 2012) by 10%, which would add approximately $3.2 billion to annual expenditures. Firm numbers will not be released until March. Defense spending grew at a compound annual growth rate (CAGR) of 12.14% from 2005–09, and is forecast to post a CAGR of 6.59% from 2010-15, reaching $42.6 billion by 2015. This is due primarily to replacement of aging hardware and technology, fighting domestic insurgencies and countering hostile neighbors. India is one of the largest buyers of foreign defense items, with a shopping list that includes warships, fighter jets, tanks and other weapons. The planned modernization program will make it the second-highest defense spender in the Asia-Pacific region within five years, and the seventh globally by 2016, says consultant Frost & Sullivan. Nevertheless, modernization is lagging by 10 years, with 50% of equipment obsolete, says air force Chief Marshal P.V. Naik. Short- and medium-term buys include unmanned aerial vehicles, advanced electronic warfare systems, combat systems, rocket and missile systems, fighter and trainer aircraft, stealth frigates and submarines. Investments in digital networks and communications are also expected to increase significantly, with a focus on enterprise applications, systems integration and real-time mobile communications. Obsolete aircraft have been phased out, and other planes are being upgraded. These include such fighters as the MiG-27 and -29, Sepecat Jaguar, Dassault Mirage 2000 and Sukhoi Su-30 MKI; the Antonov AN-32 transport aircraft; and helicopters. Other aircraft, radars and missile systems are being procured in phases. India’s homeland security budget (separate from defense) of $14.7 billion is also expected to increase. This budget includes spending for intelligence, law enforcement and counter-terrorism, critical asset and government infrastructure protection, border and perimeter security and secure networks.

GSLV Launch Fails on Christmas Day

News

AWIN First Dec 25 , 2010

Neelam Mathews

New Delhi

The Indian Space Research Organization suffered its second consecutive failure of its Geosynchronous Satellite Launch Vehicle (GSLV-F06) this year as the rocket developed a technical fault after liftoff and plunged into the Bay of Bengal. The communication satellite GSAT-5P, weighing 2,130 kg, with 24 C-band transponders and 12 extended C-band transponders was to replace the INSAT-2E satellite, put in orbit in 1999. It was also the heaviest satellite launched by an Indian launch vehicle. The rocket was launched from India’s only spaceport at Sriharikota from the Satish Dhawan Space Center, 100 km from Chennai. ISRO was using a Russian cryogenic engine which developed a leak and as a result the launch was postponed from Dec. 20 to 25. “Whether it is strap-ons or transition between first and second stage, one doesn’t know,” a space scientist says. “The performance of the vehicle was normal up to 50 seconds into flight. Soon after, the vehicle developed large altitude errors...leading to breaking up of the vehicle,” said K. Radhakrishnan, ISRO chairman.

Titanium Supply Could Become Part Of Indian Defense Offsets

Aerospace Daily
Dec 24, 2010

NEW DELHI — As international defense providers look to honor their offset commitments in India, partnerships to help tap the country’s vast titanium reserves could emerge as an attractive proposition.

The main sources of titanium in India are beach sands in its southern and eastern states that contain monazite and ilmenite. But despite these resources, titanium still must be imported because of a lack of indigenous capability to convert titanium ore into metal.

While mining in India remains the bastion of government- owned enterprises, if the means of producing the metal domestically become available, sourcing titanium for defense projects could become a part of offset packages, one vendor says.

Efforts already are underway with the Defense Research Development Organization (DRDO) and stateowned
Kerala Minerals & Metals Ltd. (KMML) to establish a titanium dioxide plant that is expected to have an annual capacity of 500 tons. The project, which was to have been completed by July, is now expected to be commissioned in 2011, a DRDO spokesman says. The Indian Space Research Organization, which requires titanium for its space applications, has invested in the plant.

Efforts have been under way to establish facilities. Three years ago, during then-Russian President Vladimir Putin’s visit, Russia and India agreed to build a 40,000-ton-per year titanium dioxide plant in the eastern state of Orissa, which was to be partly financed through repayment of India’s debt to Russia, estimated at $1-2 billion. The project remains a non-starter due to land issues.

Meanwhile, Russia-headquartered Stork Group has said it will join the proposed titanium project promoted by two Orissa-based public-sector undertakings — National Aluminium Co. Ltd. (Nalco) and Indian Rare Earths Ltd. (IREL).

Stork Group has been marketing and supplying Russian titanium products in India for 15 years to companies in aviation, space, nuclear power and other key industries.

The proposed titanium plant in Orissa initially will produce titanium slag, after processing ilmenite from a sand mine owned by IREL. The joint venture would produce the titanium metal in a later phase and will seek to import technology.
- Neelam Mathews

P-8I Gets Indian Sensor Technology

Aerospace Daily
Dec 24, 2010

NEW DELHI — Bharat Electronics Ltd. (BEL) has delivered the Identification Friend or Foe (IFF) Interrogator to Boeing for installation on the Indian navy’s P-8I long-range maritime reconnaissance and antisubmarine warfare aircraft.

Boeing will install the system during P-8I final assembly at its facility in Renton, Wash. The P-8I is a variant of the P-8A Poseidon developed for the U.S. Navy.

“The delivery is another positive step in our industrial participation effort with India,”says Vivek Lall, head of Boeing Defense, Space & Security in India.

Other items for the P-8I include BEL’s Data Link II communications system, Avantel’s mobile satellite
system and the Electronic Corp.of India Ltd.’s speech secrecy system.

Boeing will deliver the first of eight P-8I aircraft to India within 48 months of the original contract signing, which took place in January 2009. India is the first international P-8 customer.
- Neelam Mathews

India Strengthens Coast Guard

Aerospace Daily
Dec 24, 2010

NEW DELHI — Indian Defense Minister A.K. Antony will open two coast guard stations during a visit to the Lakshadweep Islands to facilitate closer coordination among maritime stakeholders and enhance coastal security.

Increasing incidents of piracy near Lakshadweep have heightened security concerns in the region. The Lakshadweep archipelago comprises 36 islands with an area of about 32 sq. km. (12 sq. mi.). Only 11 of the islands are inhabited.

The territorial waters comprise about 20,000 sq. km. The Eight Degree Channel, which separates Minicoy island from the Maldives, has traffic of about 30-40 ships a day.

The first phase of the government’s coastal surveillance plan envisions 73 coastal police stations, 204 boats,
153 ground vehicles, 304 two-wheeled vehicles and related equipment in place by March 2011.

A second phase has been approved at a cost of $350 million, to provide 131 more stations, 180 boats, 10 large vessels and 60 jetties.

A uniform system for registration of all boats is in place, and identity cards are being issued to fishermen. An effort also is underway to install transponders on vessels to ensure identification and tracking, a coast guard official says.
- Neelam Mathews

India Experiences Supply Deficit In Airline Seats

Asia-Pacific

Aviation Daily Dec 22 , 2010 , p. 12

Neelam Mathews

India is suffering from a shortage of capacity as traffic from January through November rose by 19% over the same period last year. Domestic passengers carried by scheduled airlines in November 2010 was 4.8 million, compared with 4.6 million the previous month. For the first 11 months, domestic airlines carried about 47 million passengers. In November, Air India fell below IndiGo in terms of market share, wtih Air India capturing about 17.1% to IndiGo’s 17.3%. Jet Airways and subsidiary JetLite led in market share at 26.2%, followed by Kingfisher Airlines at 19.1%, says the Ministry of Civil Aviation. IndiGo had the highest seat load factor at 91% and Air India the lowest at 70% in November. IndiGo also had the lowest cancellation rate of 0.4% and Air India, the highest at 2.5%. Analysis of capacity through available seat kilometers and demand measured by Revenue Passenger Kilometers (RPKs) data on a year-over-year basis indicates that although the capacity remained almost at the level of October 2010, the demand in November 2010 was comparatively more. This has resulted in last-minute, or spot, pricing that has the government upset making it clear to airlines not to charge unreasonable fares. “This is a result of market dynamics,” says India and Middle East Head of Sydney-based think tank Kapil Kaul. “It is a seasonal phenomenon and will go away once the holiday season is over.”

Russia Plans An-148 Production In India

Airframers/Suppliers

Aviation Daily Dec 21 , 2010 , p. 02

Neelam Mathews

Russia’s United Aircraft Corporation (UAC) is in discussions with some of India’s medium- and large-scale corporations for setting up a production facility in India for the Antonov An-148, UAC President Alexei Fyodorov told Aviation Week. He cited inexpensive labor, skilled engineers and good climate as primary reasons for the decision. A partner is likely to be announced in 2011. “We deal with Hindustan Aeronautics Ltd. in the military area and would like to look at a private industry partner for this venture,” Fyodorov said. The 75-seat aircraft (when in a single-class configuration) would be produced in passenger and cargo versions. It can fly to small cities with poorly equipped airfields with a runway length of 1900 meters. India has signed a Bilateral Aviation Safety Agreement with Russia that will enable production once the terms are finalized with the Indian partner. Meanwhile, the Director General of Civil Aviation (DGCA) has been in talks with IAC, its Russian regulatory affiliate and UAC to certify AN-148 for which a sale has already been made to a prospective Indian regional carrier awaiting its launch. Russia had earlier tried to sell the turboprop IL-114 in 2008, which was not successful given the fact a  recession hit the world market around the same time. “Lets face it. Once you have the jet comfort on the same route, the probability is that customers will prefer that,” says R. N. Tandon, managing director, Hindavia Aeronautical Services, representing UAC in India. While the cargo version will not be available until 2014, the company is confident it will sell 15-20 passenger version An-148s to Indian clients. While the Indian military is familiar with the Antonovs with many in its stable, negotiations are already on for training and maintenance, says Tandon. An MRO facility has already been identified to maintain the first Antonov 148 once it gets the DGCA clearance.

Russia, India Link Up On Aircraft Production

Aerospace Daily
Dec 21, 2010

NEW DELHI — India and Russia have registered a joint venture called Medium Transport Aircraft Ltd. that will develop and manufacture products with India’s Hindustan Aeronautics Ltd. (HAL), according to United Aircraft Corp. President Alexei Fyodorov.

“It will be in the market in six to seven years,” Fyodorov tells Aviation Week. “We are also considering working on unmanned aerial vehicles with India. But it is still in the early stages.”

More than 25 agreements were signed between Russian and Indian companies here in the areas of life sciences, energy, navigation and information technology during the visit of Russian President Dmitry
Medvedev, which runs Dec. 20-22.

India and Russia also will conclude a preliminary design contract for their joint fifth-generation fighter aircraft (FGFA) project (Aerospace DAILY, Dec. 17). The FGFA is based on the Russian Sukhoi T-50 PAK FA, which flew for the first time last January at the Komsomolskon- Amur facility in Siberia. The second prototype will fly in early 2011, Fyodorov says. The third prototype will have more advanced systems.

“Once the approvals are through, we will start the actual detailed work,” HAL Chairman Ashok Nayak tells Aviation Week.

“It would be a swing-role fighter with highly advanced avionics, giving 360-deg. situational awareness, stealth to increase survivability and smart weapons,” says P.V. Naik, Indian air force chief. The aircraft is expected to join the Indian service between 2017 and 2020.

Ahead of his visit, Medvedev had said high technology was “at the top of our agenda,” adding that an integrated program of cooperation in the areas of science, technology and innovation until 2020 would be signed. Agreements on joint production of nuclear reactors are also expected.

Outer space exploration has also been identified as a long-term area of cooperation.A bilateral agreement for use of Russia’s Glonass satellites is under negotiation.
- Neelam Mathews

Devas To Introduce Spot Beam Transmission In India

Aerospace Daily

Dec 17, 2010


 

By Neelam Mathews
NEW DELHI- Devas Multimedia will introduce spot-beam transmission for the first time in India once the GSat-6 and GSat-6A satellites are launched by the Indian Space Research Organization (ISRO). A spot beam is a satellite signal with concentrated power that is sent by a high-gain antenna and focused on a limited geographic area. The $250 million satellite communications company entered into a partnership with Antrix Corp., ISRO’s marketing arm, to lease five transponders each from the GSat-6 and 6A satellites that were to be launched 18 months ago but were delayed following the failure of a cryogenic engine on India’s Geosynchronous Satellite Launch Vehicle in April. Launch is now slated for mid-2011. GSat-6 is a multimedia mobile satellite system serving mobile phones and mobile video/audio receivers for vehicles. “This satellite will also provide a platform for developing techniques and technologies, which will be useful in future satellite-based mobile communication applications such as demonstration of large unfurlable antenna in spacecraft, hand-held, ground terminals and network management techniques,” ISRO says. Since the Mumbai terrorist attacks of 2008, real-time communications and tracking have become crucial to Indian security. “Strategic communication is a big issue for homeland security and for rural connectivity,” says Ramachandran Viswanathan, president and CEO. Devas systems are currently under evaluation by numerous government agencies for applications including homeland security, border security, railways and telecom. Devas’ backers include Deutsche Telekom, Columbia Capital and Telcom Ventures. Photo: GSat-5

First Indian C-130J On Its Way

Aerospace Daily
Dec18, 2010

PROGRAMS


Lockheed Martin on Dec. 17 delivered the first of six C-130Js for the Indian air force that comprise a $1.2 billion order placed in 2008 as the country’s first U.S. Foreign Military Sale.

The C-130J delivery is being made first to the U.S. Air Force and then will go the Indian air force in February. All the deliveries are expected to be completed by 2011.

The contract includes training of aircrews and maintenance technicians, spares, ground support and test equipment, servicing carts, forklifts, loading vehicles, cargo pallets and a team of technical specialists who will be based in India during a three-year initial support period.

Powered by four Rolls-Royce AE2100 engines, the C-130J is designed to support special operations. Equipped with an Infrared Detection Set, the aircraft can perform precision low-level flying, airdrops and landings in blackout conditions, Lockheed Martin says.
- Neelam Mathews

HAL, Russia To Sign Design Contract For Fifth-Gen Fighter

Aerospace Daily
Dec 17, 2010

PROGRAMS
NEW DELHI — India and Russia will conclude the preliminary design contract for their joint fifth-generation fighter aircraft (FGFA) project during Russian President Dmitry Medvedev’s visit to India on Dec. 20-22.

“Once the approvals are through, we will then start the actual detailed work,” H industan Aeronautics Ltd. (HAL) Chairman Ashok Nayak tells Aviation Week.

Concerning India’s involvement in the project, Nayak says: “It is in the preliminary stage now.”

The FGFA is based on the Russian Sukhoi T-50 PAK-FA, which flew for the first time last January at the  Komsomolsk- on-Amur facility in Siberia.

The 30-ton aircraft is priced at around $100 million each. “It would be a swing-role fighter with highly advanced avionics, giving 360-deg. situational awareness, stealth to increase survivability and smart weapons,” Indian Air Force Chief P.K. Naik says. The aircraft is expected to join the Indian air force between 2017 and 2020.

The FGFA will be capable of covering long ranges without refueling and will have super-cruise features along
with advanced mission computers, Naik says.

The cost of preliminary design is estimated at $295 million with the work expected to be completed within 18 months, according to a Russian news wire. A single-seat and two-seat version will be developed.
– Neelam Mathews

U.S. Eyes Indian Explosive Detection Kit

Aerospace Daily
Dec 16, 2010

PROGRAMS
NEW DELHI — A U.S. company has shown interest in an explosive detection kit (EDK) developed by India’s Defense Research and Development Organization (DRDO), and a technology transfer agreement is likely to be signed soon, DRDO says.

The EDK costs $100 and was developed by the DRDO’s High Energy Materials Research Laboratory (Hemrl) in Pune.

It comes packed in a small box containing four reagents capable of detecting explosives even in trace quantities. The EDK can identify a range of explosives, includingPETN, Dynamite, TNT, RDX and HMX-based plastic bonded explosives. When a drop of the explosive substance is mixed with chemical reagents in the kit, the drop turns a specific color. Verification can be done using the Raman spectrometric
test.

While the U.S. and other countries have their own EDKs, “foreign technology has certain drawbacks, for example, it lacks confirmatory tests,” says Reny Roy, a H emrl scientist.

“Since they use a test paper instead of liquid drops, that’s another disadvantage, as the test paper is not long-lasting and gets torn.”
- Neelam Mathews

Tech Transfer Issues Could Hold Up Indian Fighter Buy

Aerospace Daily-Av Week
Dec 17, 2010

NEW DELHI — Evidence is growing that the downselect decision for India’s Medium Multi-Role Combat Aircraft (MMRCA) may not be announced until the fourth quarter of 2011, with the holdup centered on terms for technology transfer.

India requires that any aircraft or weapons system introduced into service successfully clear all tests, trials and evaluations. All the MMRCA candidates have completed user trials, including weapons validations, technical
and maintenance evaluations.

They are currently being evaluated on their proposals for industrial offsets, with technology transfer next up. Only when this process produces a short list will their commercial offers be evaluated.

Technology transfer terms must be completed with the main contract, a defense official explained. India requires that licensed production of the aircraft, including engines, accessories, radars, systems and tooling, be
covered by the tech transfer proposal.

The ministry holds refusal rights on any specific item and suppliers must provide full life-cycle product support.

The MMRCA contract will provide for 126 aircraft and is the largest military procurement pending in India.It has drawn bids based on the MiG-35, Dassault’s Rafale, Eurofighter, the Saab G ripen, Boeing’s F/A-18E/F
and Lockheed Martin’s F-16.

Vendors, who were supposed to have their evaluations completed last April, have already been required to extend or revise their bids through next April because the selection process became bogged down. If the defense ministry is not able to complete its downselect process by then, vendors will have to resubmit their bids and another year’s delay will ensue.

That raises the prospect that swings in currency rates could significantly change the value of the bids, given that rates are determined not when bids are received but when the commercial evaluation begins.
– Neelam Mathews

Indian Aerospace Industry Calls For Even Playing Field On Offsets

Aerospace Daily Dec 16
FUNDING & POLICY

NEW DELHI— As the Indian aerospace industry eyes significant business in defense offsets required of foreign providers to India’s military, there are calls to make the technology licensing policies more flexible.

Indian defense providers are subject to a mandatory industrial license (IL).Among other requirements, ILs mandate that the applicant should be an Indian company/partnership, the majority of the board of directors and the CEO should be resident Indians, and foreign collaborators and domestic promoters should all be cleared through background checks.

Currently, 70% of India’s procurement needs are met by foreign sources. “If the Indian defense forces increase [their] indigenous procurement from the current 30% to the target 70% over the next five years, the output of Indian firms would need to more than double each year,” said Vivek Lall, Vice President, Boeing BDS, at the energizing aerospace conference organized by the Center for Air Power Studies and the Confederation of Indian Industry.

Foreign direct investment (FDI) in defense joint ventures brings capabilities into India, argues Krishnadas Nair, former chairman of Hindustan Aeronautics Ltd. “If you want technology to flow freely, one of the objectives of the Defense Procurement Policy is to enhance the technology base,”he adds.  “There are greater
opportunities for Indian defense industry to work with partnerships or in collaboration with foreign companies ....... [that] will likely continue to supply defense armaments and transfer of technology.”

However, not everybody is gung-ho for such partnerships. From the standpoint of the companies,“there is no guarantee that the technology you get will not be state controlled,” says V. Siddhartha, an analyst with the Center for Air Power Studies think tank.

Former Air Chief S.P. Tyagi says it would be good to see the market open up for FDI, which is limited to a  26% stake by foreign companies in defense joint ventures. Many have argued that this gives no incentive to a foreign company to transfer technology to such entities, in which they have such a small equity stake and no say in board decisions.

According to Air Vice Marshal M.Matheswaran, assistant chief of the air staff, India is in a position to leverage defense contracts like the Medium Multi-Role Combat Aircraft “to get what we want and get [vendors] to part with technology.”

India’s domestic defense sector, which will benefit from increasing requirements to “buy local,” as well as taxation arrangements that benefit domestic firms, also will likely require specialized inputs into both platform and systems development that can be met by foreign firms, Lall says.

- Neelam Mathews

BAE, HAL Mull Future Of Hawk Trainer Partnership

Programs

Aerospace Daily & Defense Report Dec 15 , 2010 , p. 08

Neelam Mathews

BENGALURU, India — India’s largest defense manufacturer, Hindustan Aeronautics Ltd. (HAL), is in talks with the U.K.’s BAE Systems on various projects related to Hawk Advanced Jet Trainers. HAL is currently licensed by BAE to produce the Hawk in India for the Indian military. Possible future projects include establishing a maintenance, repair and overhaul base for Hawks worldwide, building a worldwide supply chain and making India the center for exporting the Hawk in the long term, Aviation Week has learned. The final decision on what direction the partnership will take will depend on cost and both companies’ desire to kick-start the project. Opportunities are opening up for BAE as it expands its installed base for Hawks in India. In February 2003, India signed a $1.7-billion contract with BAE to supply 66 Hawk trainer jets. In July, the company was awarded a $780-million contract for 57 Hawks, 17 of which are for the Indian navy and the rest for the Indian air force. A contract clause is related to “the future of Hawks” in India, Aviation Week has learned. Under the deal with BAE Systems, the Advanced Jet Trainers are manufactured under license by HAL at its Bengaluru facility, with BAE providing the necessary specialist engineering services, raw materials, airframe production equipment and support package. “We have given a permanent license to HAL to build the Hawk,” says Andrew Gallagher, managing director and CEO of BAE Systems India. “This statement makes it clear that India has access to the technology. It’s now a question of how they want to move forward,” an Indian defense official says.

India To Launch GSAT-5 Communications Sat

Dec 13, 2010

 

By Neelam Mathews NEW DELHI

The Indian Space Research Organization (ISRO) plans to loft GSAT-5 on its Geosynchronous Satellite Launch Vehicle (GSLV-F06) powered by a Russian cryogenic engine on Dec. 20. Also known as Insat 4D, the 2,400-kg. (5,300-lb.) satellite features 24 regular C-band and 12 extended C-band transponders, and a design life of 12 years. It will be launched from India’s spaceport at Sriharikota. Earlier this year, GSAT-4, the 19th geostationary satellite built by ISRO and the fourth in the GSAT series, failed to reach orbit because the GSLV-D3 malfunctioned. That mishap was later linked to a turbopump failure (Aerospace DAILY, April 16, July 12). Preparations are also underway to loft PSLV-C16, which will carry India’s advanced remote-sensing Resourcesat-2 and auxiliary satellites Youthsat and X-sat by the end of December, ISRO says. GSAT-5 photo: ISRO

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Tech Transfer Issues Cleared For Scorpene Buy

Programs

Aerospace Daily & Defense Report Dec 07 , 2010 , p. 06

Neelam Mathews

NEW DELHI — French shipbuilder DCNS says the first of six diesel-electric Scorpene submarines will be delivered to India’s Magazon Dock Ltd. (MDL) in Mumbai in 2013, now that initial roadblocks concerning technology transfer have been overcome. Scorpene “is one of the biggest transfer of technology [TOT] programs because it is the first time that the TOT starts from the first ship, which is generally built at the OEM premises,” says Patrick Boissier, Chairman and CEO DCNS. “MDL now has the necessary technology for submarine production.” The project has been delayed and costs have escalated as a result of MDL’s learning process. The combat systems have been delivered for the first sub, while the frame of the third, fourth and fifth submarines are in progress. “We are motivated to meet the delivery date,” Boissier says. He was a member of the business delegation accompanying French President Nicolas Sarkozy to India. “DCNS will be involved with strategic cooperation between the two governments,” Boissier adds. “It’s a win-win strategy for us.” The company says it could offer a larger version for India’s upcoming six-submarine Project 75I class. It has held discussions with the Indian navy on the addition of Air Independent Propulsion, for which the request for proposals is expected in 2011. DCNS has not discussed its new Gowind family of offshore vessels with India, but such discussions are likely, an official says. With a 360-deg. panoramic surveillance bridge, single central mast, tailored communication system, ample payload capacity (in containers or under fixed covers) and onboard recovery and handling systems, the 1,000-2,500-ton-class Gowind vessels are well-suited for UAV operations, according to the company.

Indian Army Eyes Networked Communication

Programs
Aerospace Daily
Dec 7, 2010
NEW DELHI — Following initial delays, the Indian army’s Corps of Signals will soon have a Tactical Battlefield Communication System (TCS), Minister of State for Defense M.M. Pallam Raju said at a seminar in New Delhi Dec. 2. The deployable wide-area network provides a secure communications infrastructure and network-enabled operating environment to cover communication needs on the battlefield. As India looks to shifting from Platform-Centric to Network-Centric Warfare, “a strong, robust and secure information grid is a prerequisite for this,” says Chief of Army Staff Gen. V.K. Singh. The Indian army’s network-centricity efforts are being operationalized. “Once equipped, I see our armed forces increasingly harnessing the power of data and voice networks . . . that use information as a weapon to strike with pinpoint precision,” he says.

Indian Military Takes Note Of Environment

Funding and Policy
Aerospace Daily & Defense Report Dec 07 , 2010 , p. 16
Neelam Mathews NEW DELHI — The Indian air force is looking at the management of Ozone Depleting Substances (ODS) as it plans its compliance with the Montreal Protocol. “The Indian air force is adopting a multipronged strategy to combat ozone depletion, including limiting the use of Halon to mission critical uses, tighter control laws and incorporating accountability toward phaseout of ODS,” Air Chief Marshal P.V. Naik said at a workshop in Delhi. For new weapon systems in the pipeline, an inclusion of a clause in requests for proposals asks for alternatives. “The use of recycled Halon recovered from phased-out or downgraded aircraft and equipment is being planned,” Naik says. India is talking with original equipment manufacturers for suitable alternatives for full life-cycle support regarding existing weapons system. The military is one of the largest users of power and petroleum products. The start in reduction will be in the air conditioning and refrigerant areas, another delegate tells Aviation Week. Military activities that affect the environment include storage and transport, disposal of military equipment, e-waste, soil contamination through oil leaks, production and testing of weapons and maintenance.

Air Astana Increases Services To Asia

News

AWIN First Dec 06 , 2010

Neelam Mathews

NEW DELHI

Central Asia-based Air Astana, national carrier of the former Soviet republic of Kazakhstan, is continuing to expand its network in Asia. It increased frequencies on the Almaty-Bangkok route on Dec. 5 to four services per week. The seating capacity on the route will increase by almost 30% to match the steady increase in traffic. “Given the prevailing shift of global influence and commercial dynamism towards Asia in general, I foresee continued expansion of Air Astana’s network of services to the region in the years ahead,” said Peter Foster, president, Air Astana. Last month the carrier said it was in talks with Boeing to buy three new 787s for delivery in 2014. With a fleet of 22 aircraft, it has plans to increase its fleet size to 34 aircraft by 2014. It is also planning to acquire six Airbus A320s. Services on the Almaty to Kuala Lumpur route were increased to twice weekly early in November. Air Astana’s services to other long-haul destinations in Asia remain unchanged, with Almaty to Beijing served five times a week. Almaty to New Delhi is served three times a week and Almaty to Seoul, twice a week. Air Astana is a joint venture between Kazakhstan’s JS Company “Sovereign Wealth Fund SamrukKazyna” (51%) and BAE Systems (49%).

Indian Carriers Against Government Fare Regulations

News

AWIN First Dec 06 , 2010

Neelam Mathews

NEW DELHI

Domestic carriers in India are adamently opposed to the Ministry of Civil Aviation’s plan to take action against those increasing their fares to what it deems as unacceptable levels as traffic surges after two years of recession. The airlines say market forces should determine the fares. As a result of increases in passenger capacity, air fares surged with the start of the peak season last month. Not satisfied with the airlines’ responding to an inquiry on the upsurge in fares last month, the Directorate General of Civil Aviation, following meetings with domestic airlines on Dec. 4 and 6, has told them to maintain transparency in tariffs. The airlines have been directed to upload the route-wise tariff across networks in various fare categories and to reduce tariffs. “It is gratifying to note that tariffs during the last 48 hours have shown a downward trend of nearly 25% in many sectors. However, close watch will continue to be maintained on the situation by the DGCA and airlines should not resort to any unreasonable and excessive increases in their tariffs in coming weeks,” says the DGCA. “This is wholly unacceptable and shows high-handedness of the government as there is no rule that supports this ruling. Besides, nobody in the government asked airlines to increase their fares when they were priced at dangerously low levels,” says an airline official. “This situation has arisen as a result of an increase in passenger capacity with no increase in fleet capacity,” says aviation analyst Jitender Bhargava. “Airlines have many aircraft still on ground following the recession. This decision may stunt the growth of the industry in the long run as this is the time when ‘real’ pricing is coming to fruition,” he adds. Another airline official says the market follows a demand-and-supply curve. “Let market forces determine pricing,” he adds. A Southeast Asian analyst holds the view that there might be cartelization among the airlines and “that is what the government needs to worry about.”

Indian Navy Makes Strides In Maritime Security

Aerospace Daily-Av Week

Dec 3, 2010
 

By Neelam Mathews

NEW DELHI- The lack of inter-agency security coordination exposed during the 2008 Mumbai terrorist attacks resulted in the Indian navy taking numerous initiatives to strengthen security of coastal areas. The most significant step has been the integration of all maritime stakeholders, including several state and central agencies into the coastal security matrix, according to Chief of Naval Staff Adm. Nirmal Verma. “I am of the view that attaining awareness of the maritime domain is not a localized action to be undertaken by a single agency,” Verma said here Dec. 2 at a press conference held for Navy Day, which is celebrated on Dec. 4. “Intelligence and information sharing has undergone a transformational change,” he continued. “There is today far better coordination, synergy and understanding among all agencies.” There are 36 ships and submarines currently on order at Indian shipyards. These include construction of an indigenous aircraft carrier, which is “progressing satisfactorily, though with some hiccups,” Verma says. The refurbished Vikramaditya (Gorshkov) is expected to be delivered from Russia by the end of 2012. In the interim, mid-life upgrades of 13 ships have been approved. The government also has approved the induction of four Landing Platform Dock ships, or LPDs, and six submarines under Project 75 India. The first of the two replenishment tankers is likely to arrive in India by the end of December. The navy’s aviation wing has started inducting 16 MiG-29Ks since February, with an additional contract for 29 more fighters signed recently. Also, “we expect the first flight of the naval version of the [Light Combat Aircraft] to take place his month,” Verma says. The navy also is in the process of procuring 16 Multi-Role Helicopters for surveillance. “Procurement of the Naval Utility Helicopter as a replacement for our Chetak fleet has been initiated,” Verma says. “The existing fleet of Sea King and Kamov helicopters is planned for a mid-life upgrade for sensor suites.” The navy is not focusing on advanced early warning systems and is concentrating instead on Russian rotary-wing alternatives, Verma says. The navy also has placed orders for 12 Boeing P-8I maritime patrol aircraft. “During my recent visit to the U.S. [I took time to] personally review the progress of this project,” Verma says. “These are extremely modern and capable aircraft and will enhance our surveillance, anti-surface and anti-submarine preparedness significantly.” Delivery is expected to start in January 2013. “We have also initiated the process to acquire medium-range maritime reconnaissance aircraft to further augment our surveillance capabilities,” Verma says. As for whether the Communications and Information Security Memorandum of Agreement (Cismoa) that India has refused to sign with the U.S. will affect access to the full capability of the aircraft, Verma says: “Our requirement, by and large, has been [fulfilled] by the End-User Monitoring Agreement signed some time back.” “There is no doubt that by not signing Cismoa, India will not have access to full capability,” a senior navy official says. “However, geopolitics rules in government decisions, and this could be leveraged at a later date [by India] during discussions on other politically infused subjects.” Photo: MiG-29K

Upgraded Brahmos Missile Achieves Multipoint Maneuvers

Aerospace Daily

Dec 2, 2010


 

By Neelam Mathews NEW DELHI

A Block III+ version of India’s 290-km. (180-mi.) range Brahmos supersonic cruise missile was fired Dec. 2 from a Mobile Autonomous Launcher by Indian army personnel at the interim test range at Chandipur on the east coast of Orissa. This follows a test firing of the advanced version of Brahmos Block-II in September, which was the third launch in the series for the Indian army. The Brahmos test firing once again has established “its mountain warfare capability with upgraded software and a new advanced guidance scheme incorporating large-scale maneuvers at multiple points and a steep dive from high altitude with precision strike capability,” a statement says. While the Block II launch met the army’s requirement for the land attack version with advanced seeker software with target discriminating capabilities, the Block III version was “better in its maneuvering capability,” an army official tells AVIATION WEEK. “This is a significant step because maneuvering in supersonic mode is a difficult task. Now it is multipoint maneuvering ... and a major deviation in its path.” All the telemetry and tracking stations, including Indian naval ships positioned near the terminal point, confirmed the accuracy of the flight. “In this launch campaign, the missile was put through extreme conditions and it successfully completed all complicated maneuvers as envisaged in the battlefield in mountain terrains, following the exact flight path given to it,” says A.S. Pillai, CEO of Brahmos Aerospace. Officials are not commenting on when the next firing will take place or if any further additions to the guidance mode will be added. The Indian army is said to be the first army to have a regiment of supersonic cruise missiles with advanced capabilities. “This [Block III version] will provide an enhanced capability to the user for selection of a particular land target amongst a group of targets. With this success, Brahmos has become the only supersonic cruise missile possessing this advanced capability.”

Ethiopian MRO Could Spin Off

Business & Operations

Dec 01 , 2010 , p. 33

The limited scope of MRO suppliers in Africa is changing, as African markets start to grow. By Neelam Mathews

ADDIS ABABA—While the African subcontinent represents only 4% of global MRO revenues, its markets are anticipated to witness greater demand for MRO services as a result of air traffic growth, new aircraft deliveries and airline consolidation, says Frost & Sullivan. These predictions are supported by Boeing’s September forecast, which pegs carriers in Africa to experience steady growth over the next 20 years, with a delivery of 710 airplanes in that time frame. Obvious growth is happening in Ethiopia, as Ethiopian Airlines gets set to join the Star Alliance in the next 12-18 months. Of the 58 destinations it services, 37 are in Africa. The carrier is amid preparations to receive the first of five Boeing 777-200LRs on order on Nov. 21, a second in mid-December and a third in the first week of January. These replace 767s, some of which likely will be converted to freighters. This is notable, as Ethiopian is the only African airline with cargo conversion capability. Further orders include eight Bombardier Q400s, 10 Boeing 787s, 12 Airbus A350XWB and 10 Boeing 737-800s. An Ethiopian Airlines 767 in for a maintenance check.Credit: Neelam Mathews Business is expected to further increase with sister carrier Asky Airlines, which launched last year from its base in Lome, Togo, to serve West Africa. Ethiopian also is looking to start an airline with Star Alliance partners South African Airways and Egypt Air to serve central Africa—a venture likely to be supported by Brussels Airlines. Ethiopian has the third-largest MRO in Africa, with major expansion and consolidation plans. According to the Ethiopian government’s Vision 2025, the carrier is in the process of restructuring and hiving off its main entities, one of which will be its technical division. Ethiopian MRO is slated to earn $520 million per annum by 2025, says CEO Girma Wake. As a separate entity, Ethiopian MRO will provide line maintenance, repairs and overhaul service to other carriers in the region and beyond. Ethiopian's present MRO center services 18 airlines—mostly African—and holds approvals from the Ethiopian Civil Aviation Authority, FAA, Boeing and Pratt & Whitney. It consists of three hangars—one for smaller aircraft, one for medium-sized aircraft and another for widebodies—at Ethiopian's hub at Addis Ababa Bole International Airport. The 7,200-sq.-meter widebody hangar was built at a cost of $6.4 million by Chinese construction company Catic. A fourth hangar is planned. An 8,000-sq.-meter engine overhaul workshop provides various levels of maintenance and repair work. With modular facilities for the Pratt & Whitney PW120, Ethiopian MRO is in the final stage of building capability for the PW4000 and the CFM56. “We tried outsourcing the PW4000, but it was expensive," says Tewodros Zegeye, director, aircraft maintenance. “Since we have the facility and skilled technicians, we revised the training syllabus to meet the demand.” Ethiopian MRO has a fully equipped jet engine test stand and a two-cell, modern engine test bed. The 100,000-lb.-thrust test cell provides a safe environment in which to test overhauled engines for widebodies, explains Zegeye. The MRO has additional backshop capabilities. A harness production plant owned by Ethiopian MRO manufactures wire harnesses for Boeing, and it is in discussions with Pakistan’s Shaheen Air for non-destructive testing and painting. “It is just a six-hour flight to Ethiopia, and our costs are low,” says Zegeye. Another focus is its training unit. Ethiopian MRO is expected to sign a $49.6-million soft loan agreement soon with Agence Française de Développement to expand its Aviation Training Academy. In addition to two Thales and CAE simulators for 757/767 and 737-700/800 on site, a 787 simulator has been ordered. “Other airlines can train on the 787 simulator here,” says Zegeye. “But, we cannot say when the simulator will be delivered unless we know when the date of delivery of the 787 is.” Meanwhile, a technician has been sent to Boeing for training on the 787 airframe and engine.

Indian Border Security Force Steps Up Modernization

Programs
Aerospace Daily & Defense Report Dec 02 , 2010 , p. 10
Neelam Mathews
NEW DELHI — At its 45th anniversary, the Border Security Force (BSF) — responsible for guarding India’s land boundaries during peacetime — is being transformed into a modern, technology-driven force, according to its director general, Raman Srivastava. “We are pursuing modernization,” Srivastava says. Procurement plans include buying handheld thermal imagers, battlefield surveillance radars, long-range reconnaissance and observation systems, and biometric ID machines. The BSF provides training for bomb disposal to state police and trains commandos. The BSF also may purchase bomb-disposal equipment in the near future. With a sparse aviation wing comprising one Embraer, one Beechcraft and 14 helicopters, BSF is now looking at replacing its aging three Avros. Three helibases also are planned in eastern India. The BSF soon may be given the added responsibility to guard the unfenced 1,643-km. (1,020-mi.) India-Myanmar border to stop infiltration of arms and drugs and defend against militants that maintain their camps and training centers across the border. This follows India’s concern over Myanmar’s plan to construct a six-lane road to connect Kunming in southwestern China and Chittagong in Bangladesh. The road will pass less than 20 km. from Mizoram in northeastern India. Like the other paramilitary units, the BSF is under the administrative control of the Home Affairs Ministry.

AirAsia X Starts Flights To New Zealand

Low-Cost carriers

Aviation Daily Dec 02 , 2010 , p. 07

Neelam Mathews

Malaysian long-haul buget carrier AirAsia X will launch its 15th international destination — from Kuala Lumpur to Christchurch, New Zealand — with four weekly nonstops, starting April 1, 2011, and using new Airbus A330 aircraft. "AirAsia X flights will open up routes and connectivity to New Zealand not just from Malaysia, but from India, Thailand, Singapore, Indonesia, China and London via AirAsia X's Kuala Lumpur hub," said Tourism New Zealand CEO Kevin Bowler. "We have strong growth in demand from Southeast Asia, and this new service will go a long way to fulfilling this increased interest," Bowler added.

DRDO Synthesizes CL-20 Explosive

Technology
Aerospace Daily & Defense Report Dec 02 , 2010 , p. 11
Neelam Mathews
EXPLOSIVE POWER: India’s Defense Research and Development Organization has synthesized an explosive it hopes to use to reduce the weight and size of warheads considerably while packing them with more power. The explosive is CL-20, or octanitrocubane, a nitramine-class of explosive 15 times as powerful as HMX. Scientists synthesized CL-20 at the Pune-based High Energy Materials Research Laboratory (Hemrl), but it is still very expensive to produce compared to RDX. “We have a tie-up with an industry partner for intermediate commercial exploitation of [Indian] CL-20,” says A. Subhananda Rao, director of Hemrl.

Cobham To Provide Hawk Weapons Carriage And Release Equipment

Programs
Aerospace Daily & Defense Report Dec 02 , 2010 , p. 09
Neelam Mathews
Cobham has a received a $28 million order from BAE Systems to supply weapons carriage and release equipment for the Indian Air Force Hawk Advanced Jet Trainer program. The contract award follows India’s purchase of 57 BAE Hawk Advanced Jet Trainer Aircraft (AJT) in July 2010, to be built by Hindustan Aeronautics Ltd. in India. Forty aircraft have been assigned to the Indian Air Force and the remaining 17 for the Indian Navy. Cobham will deliver significant quantities of Light Duty Ejector Release Units and Carrier Bomb Light Stores (CBLS) training aids to BAE Systems between 2012-14. Cobham’s Carrier Bomb Release System CBLS 2000 provides the facility for carriage and release of up to four practice stores. It conforms to the latest military specification requirements for the Eurofighter, Gripen and latest Hawk variants. Cobham’s weapons carriage and release systems use high-pressure pneumatic technology in place of pyrotechnic systems for suspension and release hardware. Various configurations can be designed depending on weapons load-out requirements and intended aircraft platform. “There will be no changes required for the Indian Navy AJTs,” says Lee Griffiths, CEO of Cobham India.

TASL Buys Stake In HBL Elta Avionics

Aerospace Daily
Dec 1, 2010
BUSINESS
NEW DELHI — Tata Advanced Systems Ltd. (TASL), a Tata Group company, has purchased a 74% stake in Hyderabad-based HBL Elta Avionics — its first defense acquisition.

The purchase price was not disclosed.

The remaining 26% of HBL continues to be held by its partner, ELTA Systems, a unit of Israel Aerospace
Industries (IAI). ELTA Systems has expertise in intelligence, electronic warfare, surveillance and target acquisition.

HBL Elta Avionics, a provider of battery and power systems technology, has diversified into microwave systems and subsystems. The company has built a range of products from 500 MHz to 40 GHz for both military and industrial applications.

TASL provides support in technology sourcing and management, production of defense technology, obsolescence management and project execution. It focuses on homeland security, network-centric warfare, avionics, surveillance technologies and communications.
- Neelam Mathews

Indian Military Seeks Advanced Technology Agency

Aerospace Daily
Dec 1, 2010
FUNDING & POLICY

NEW DELHI — Indian military leaders are calling for the creation of an agency similar to the U.S. Defense Advanced Research Projects Agency (Darpa) to develop new military technology.

“This indicates the realization of a ‘futuristic element’” in Indian technology development planning, said a delegate at the National Seminar on Aerospace Technologies (N-Sat) held here Nov. 24-25. “The Indian air force, for instance, is looking at sensors and weapons packages beyond the Su-30MKIs and Medium Multi Role Combat Aircraft.

"We have been guilty in the past of not looking at strategy,” says former air chief S.P. Tyagi. “There is a direct link between technology and economic growth. In India, we have a very long way to go for both R&D and manufacturing.”

With security issues threatening progress, the military needs to develop all of its capabilities, Air Chief  Marshall P.V. Naik says. “It is important to safeguard national information with mission flexibility,” he adds.

While India is considering an Advanced Medium Combat aircraft, aerostats, a fifth-generation fighter and the integration of radars for surveillance, the challenge is to bridge the gap in R&D, look at how to absorb assets in the transfer of technology and expand defense offsets, Naik says.

“A national aerospace policy is long overdue. Unless you have it, industrial development is not possible,” Air Vice Marshal M. Matheswaran says. “A military strategy recognizes the centrality of aerospace power.”

While Eurofighter has started an initiative for fighter parts in India, “setting up logistics support systems needs a reliable partner to keep cost of ownership low,” says EADS Cassidian’s vice president for industrialization in India, Rudolf Hisserich.

- Neelam Mathews

Regional Airline To Take Off Dec. 25

Regional Airlines

Aviation Daily Dec 01 , 2010 , p. 11

Neelam Mathews

India on Dec. 25 will get its regional carrier—Jagson Airlines—which will take advantage of a government break in parking and navigation fees by operating its AVRO RJ-85 with only 80 seats. The Ministry of Civil Aviation introduced its regional air transport policy in August 2007, when a worldwide recession put plans for launching regional services on hold. India introduced the policy for scheduled regional air transport services because there was a need to promote air connectivity between non-metro and remote airports. The RJ-85 was chosen following its ability to land on short runways. “It flies at twice the speed of the present ATR-42s being run on the route by full-service and budget carriers and with no weather restrictions,” CEO Koustav Dhar told Aviation Week. To take advantage of the government rule that permits the waiving of parking and navigation charges for aircraft weighing less that 40 tons and with fewer than 80 seats, Jagson plans to reduce seats on the 94-seat aircraft by putting 72 in economy and eight in business class. The refurbished seats have a larger pitch than any other carrier in India—46 inches in business and 34 inches in economy . Jagson also will pay only a 4.5% fuel surcharge instead of 30% paid by operators of larger aircraft. “Regional is the sector for all to look at as 45% of the traffic exists on that sector at the moment. There is too much crowding of the major city-pairs,” says Dhar. According to Ministry of Civil Aviation rules, a regional airline must have three aircraft at the end of its first year of operations and five by the end of the second year. The carrier has signed a letter of interest with BAE for an RJ100 108-seater to be delivered in March and an RJ-85 for delivery in December 2011.