aerospace diary

Rolls-Royce has officially opened its largest facilities in Asia, at Seletar Aerospace Park in Singapore

2012-02-13T15:32:00.000+05:30

Posted by- Neelam Mathews
Feb 13, 2012
Singapore
Constructed on a 154,000 square meter site it is the first of its kind to bring advanced aerospace high-value manufacturing technology to Singapore.

The Rolls-Royce Seletar Campus includes an Assembly and Test Unit; a Wide Chord Fan Blade manufacturing facility; an Advanced Technology Centre; and a Regional Training Centre. The Rolls-Royce Seletar Campus represents an investment of over S$700 million and will significantly increase the Group’s manufacturing capacity and proximity to customers in the Asia Pacific region.

The investment will create over 500 new jobs, bringing the number of people employed by Rolls-Royce in Singapore to over 2,000. It is expected that the Group’s value-added contribution in Singapore will increase from 0.3% of GDP currently, to 0.5% of the GDP projected in 2015.

Singapore Prime Minister, Lee Hsien Loong, officially opened the Rolls-Royce facilities, accompanied by Sir Simon Robertson, Chairman, Rolls-Royce plc and Mike Terrett, Chief Operating Officer, Rolls-Royce plc, Cedric Foo, Chairman of Jurong Town Council (JTC), and Leo Yip, Chairman of the Singapore Economic Development Board (EDB) at an event attended by dignitaries, customers and partners. Leo

Yip, Chairman of EDB, said: “We congratulate Rolls-Royce on the successful completion and opening of its Seletar campus. This marks a major milestone in the development of Singapore’s aerospace industry, and we are delighted that Rolls-Royce has made such a significant commitment here. Manufacturing is fast emerging as a key engine of growth for our aerospace industry. We will continue to partner with industry leaders such as Rolls-Royce to build sophisticated manufacturing capabilities in Singapore."

Mike Terrett, Chief Operating Officer, Rolls-Royce plc, said: “This fantastic facility gives Rolls-Royce additional capacity to deliver our record order book. Importantly, this also marks an important new phase of our relationship with Singapore. For the first time outside our traditional home facilities we will produce our unique Wide Chord Fan Blades and assemble and test large commercial jet engines. The Rolls-Royce Seletar Campus brings together state of the art technologies, advanced manufacturing techniques and highly skilled people to produce some of the most advanced aero engines in the world.”

The Rolls-Royce Seletar Campus comprises:• The Seletar Assembly and Test Unit (SATU) is a state of the art facility designed to allow simultaneous assembly and testing of Rolls-Royce Trent engines under one roof. At full capacity it can produce up to 250 engines per year. Initially Trent 900 and Trent 1000 aero engines will be built at SATU. •

The Group’s first Wide Chord Fan Blade (WCFB) manufacturing facility outside the UK to manufacture hollow titanium WCFBs, a unique capability and technology which has played a key role in the success of the Trent aero engine family. At full capacity, this facility could produce over 6,000 blades per year. • An Advanced Technology Centre (ATC) is an important part of the Group’s global network of Research & Technology centres which develop advanced technologies to support core business areas. Four key areas of research will take place within the ATC, namely materials support technology, computational engineering, electrical power and control systems, and manufacturing technology research. •

The Regional Training Centre (RTC) is the first such training facility for Rolls-Royce in Asia. Its purpose is to develop high-value skills and nurture talent for the future. It is part of the global network of Rolls-Royce training centres, combining the latest technology, equipment and facilities to give customers and employees in the region access to world class facilities, and internationally accredited qualifications.

Regional aircraft orders to be announced- Watch this space!

2012-02-12T04:59:00.000+05:30

Neelam Mathews
Singapore

Feb 12, 2012

Even as Bombardier Aerospace has just announced that an airline, which has requested to remain unidentified at this time, has signed a firm order for six CRJ1000 NextGen regional jets and has taken options on another 18, Aerospace Diary learns ATR will receive around 40 orders and Embraer between 5 to 6. They are divided between customers.

Looks like the war is now starting on the regional front in Asia.

Lufthansa Technik Philippines opens new hangar

2012-02-10T22:06:00.001+05:30

Neelam Mathews
Singapore
Feb 10, 2012

Lufthansa Technik Philippines (LTP), one of the largest providers of
aircraft maintenance services in Asia, has opened a third hangar in
Manila for work on widebody aircraft. With this step, the company is
preparing for the technical support of the world's largest commercial
aircraft.

Lufthansa Technik Philippines, a joint venture between Lufthansa
Technik (51%) and the Philippine MacroAsia Corporation (49%),
invested USD 30 million in the construction of the new hangar, which
is 8,500 square meters large and 35 meters in height. The new hangar
offers space to work simultaneously on one widebody and two
narrowbody aircraft.

"With the new hangar, we will be able to keep up with the increasing
demand for technical services for long-haul aircraft, particularly in
the Asian market," said Lufthansa Technik Chairman of the Executive
Board, August Wilhelm Henningsen. "By adding A380 capability, it
underscores Lufthansa Technik Philippines' role as global aircraft
overhaul center."

BREAKING! Air Works Becomes India’s First EASA approved General Aviation MRO

2012-02-10T21:19:00.000+05:30

Neelam Mathews
Feb 10, 2012

Air Works India Engineering has become the first independent General Aviation MRO to obtain EASA Part 145 approval for its Delhi Facility.

“This represents a new benchmark for Indian General Aviation …… It opens our Delhi Hangar doors to carrying out maintenance on European registered aircraft and releasing them to service. This beginning will allow us to release Hawker 750-900XP family aircraft to European operators but it is just the beginning as we will quickly add additional aircraft types.” Nick White, Vice President, General Aviation, who led this effort, said Nick White, Vice President, General Aviation, who led this effort.

EASA certification is globally recognized and is a benchmark for aviation safety standards. Air Works, over the past two years, has been focusing on enhancing capabilities through accreditations and services to make the company a one- stop shop for all aircraft maintenance work.

This certification supplements EASA approvals already held by the Air Works facility in Hosur, where it maintains Airbus A320 family, Boeing 737 Classic/NG series and ATR 42/72 series aircraft and by SAAW, Air Works joint venture with Scandinavian Avionics which has an EASA approved avionics shop in Delhi.

“This certification recognizes our world class facilities ……believe it will provide further impetus to the growth of general aviation business for the company and the industry as a whole”. Echoing the sentiments, Vivek Gour, Managing Director, Air Works said.

IndiGo gets 50th aircraft

2012-02-09T21:57:00.002+05:30

Neelam Mathews

Feb 10, 2012

Singapore

IndiGo has taken delivery of its 50th A320 aircraft from Airbus.

Presently the carrier serves 26 domestic destinations and 9 international destinations with 313 daily flights.

In a presentation made by IndiGo at the Low Cost Airlines World conference here, the spokesman said: “We are targeting five more domestic and three international routes in the short term.”

This month, Chennai and Mumbai will be connected. “Starting March 24, IndiGo will become the largest operator from Delhi.”

The airline has signed on 1300 corporate clients and now has 45% of its traffic from corporates on its network.
Recent developments include selling cabs, lounge services, Visa, Hotels, Mobile cards and Meet and Greet services.

EXCLUSIVE! Qatar to invest in Kingfisher?

2012-02-07T15:40:00.001+05:30

Neelam Mathews

Feb 7, 2012

It may take a while to get back to good times, but if word is to be believed, the process is on. Aerospace Diary learns that Qatar Airways is burning midnight oil to get its papers ready. Once the Foreign Direct Investment proposal is cleared, it will pick up a stake (49%?) in Kingfisher Airlines. Generally, this would mean installing its own CEO, COO and CFO. This decision should worry its competitor Emirates that is presently referred to in close circles as "India's national carrier."

Aerospace Diary could not confirm the news. Though one wonders what would have prompted Vijay Mallya to leave the IPL auction in Bangalore to take a flight last Saturday to meet up with the prime minister in Delhi?

Aerospace Diary also learns this process will not go through seamlessly as one of the biggest competitors to Kingfisher has upped the antics to block the deal. Expect to hear more on “security concerns and the Middle East” in the newspapers in coming weeks.

Frankly, I may be wrong, but think that’s politically incorrect. Given that India has a home-grown threat of its own, one should not assume doing business with Gulf countries means pilots will be committing harakiri. Lets grow up!

Was Rafale on the agenda?

2012-02-06T20:28:00.000+05:30

Neelam Mathews

Feb 6, 2012

Defense Minister AK Antony held talks with his Brazilian counterpart Celso Amorim in Delhi today. While both leaders held candid discussions on bilateral defense cooperation and regional security issues, Aerospace Diary wonders if India’s decision to declare Rafale as the lowest bidder for the MMRCA was on the agenda.

The Rafale is on the shortlist of the Brazilian Air Force combat aircraft fighter requirement. It has been said Brazil was looking at India’s decision before it made its own to buy 36 combat aircraft.

Transfer of military technology is a key factor for Brazil as it considers Boeing's F-18 Super Hornet, the Rafale of France's Dassault, and the Gripen NG of Saab, Sweden. Earlier, there were reports that Brazil may be viewing the Typhoon and Lightning II as the fourth and fifth contenders in the race.

Amorim, on a visit to India from February 4-8, was accorded a tri-Services Guard of Honor. Senior officials of the Brazilian Ministry of Defense and the Brazilian Armed Forces including the Chief of Air Force, accompanying the visiting dignitary, also held meetings with their respective counterparts. The Brazilian Defense Minister will visit HAL, Bangalore during his five-day stay in India.

China prohibits its carriers from paying ETS- West v/s East?

2012-02-06T17:43:00.000+05:30

Neelam Mathews

Feb 6, 2012

Asia’s frustration with the ETS is clear as China bans its airlines not to pay a charge on carbon emissions imposed by the Europe Union (EU), and neither to hike freights nor to add other fees accordingly without government permission, the Civil Aviation Administration of China (CAAC) has said.

The CAAC said in a statement that it had been authorized by the State Council, China’s Cabinet, to notify the ban to all domestic airlines.

The statement said the EU’s decision to charge flights into and out of EU airports for carbon emission “runs contrary to relevant principles of the United Nations Framework Convention on Climate Change and the international civil aviation regulations.”

It is estimated that around 4,000 airlines will pay the EU for their carbon emissions.

“China objects to the EU’s decision to impose the scheme on non-EU airlines, and has expressed its concerns over the scheme through various channels,” the statement said. “China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue.”

Now one shall have to wait and see what India does on this issue considering it took the initiative to protest the ETS.

Air Astana orders 767s and 787s

2012-02-06T10:13:00.000+05:30

Posted by- Neelam Mathews

Feb 6, 2012

Air Astana, the national flag carrier of Kazakhstan, has agreed to purchase four Boeing 767-300ER aircraft and three Boeing 787-8 “Dreamliners”, an order worth $1.3 billion at list prices and the largest ever in Kazakhstan’s civil aviation history. The Boeing 767s will be delivered in 2013 and 2014 and the Boeing 787s in 2017 and 2019.

The introduction of the Dreamliner “will place Air Astana amongst the leading airlines of the world in terms of operating the highest quality, environmentally friendly air services”, said the airline’s Chairman, Nurzhan Baidauletov, Managing Director of its majority owner, sovereign wealth fund Samruk-Kazyna. Air Astana “will fund the new aircraft through a combination of its own cash and financial instruments through the air finance market, he added.

The new Boeing 767s, equipped with winglets, will replace the two currently leased aircraft of this type and progressively replace its leased Boeing 757s, Air Astana’s President Peter Foster. He added the Boeing 767 had proved capable of operating efficiently on all of Air Astana’s present route network without restrictions. The Boeing 787, with its superior range, will enable the airline to operate routes to the United States, Australasia and Africa..

Air Astana also announced unaudited operating results for 2011. Net profit declined by 19% to US$61.9 million. Capacity grew by 15% and the number of passengers carried grew by 16% to just over 3 million. Revenues grew by 16% to $760 million. According to Foster, the decline in profitability was entirely due to fuel price rises of more than 130% over 2010. Nonetheless, “a net margin of 8.1% is very respectable by industry standards and ahead of our ten year average.”

During the year the airline introduced its first three Embraer 190 regional jets and one additional Boeing 757. It launched new services to Samara in Russia and Tbilisi in Georgia and increased frequencies on most of other routes.

Air Astana is a joint venture between Samruk Kazyna (51%) and BAE Systems PLC (49%). The airline will mark 10 years of operations in May 2012.

Boeing awarded C-17 contract by Dept of Defense

2012-02-04T23:08:00.001+05:30

U.S. Department of Defense Press Release on Contracts dated Feb 2, 2012

The Boeing Co., Long Beach, Calif., is being awarded a $1,781,413,723 firm-fixed-price contract for a modification is a Foreign Military Sales requirement for the Indian Air Force. Ten C-17 aircraft will be procured for the IAF. The location of the performance is Long Beach, Calif. Work is expected to be completed by Jul. 28, 2014. ASC/WLMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8614-06-D-2006, DO 0009).

Bureaucracy and Costs Stifle Newborn Indian Bizav

2012-02-04T18:37:00.001+05:30

by Neelam Mathews

BAOA is advocating the adoption of clear guidelines on access to Indian airspace and airports for foreign-owned business aircraft.

February 4, 2012, 6:00 AM

India’s Business Aircraft Operators Association (BAOA) is urging the nation’s government to abandon plans for new restrictions on flights by foreign-owned aircraft. The campaign comes as the country’s tax authorities are probing 15 Indian companies that they believe have registered corporate aircraft offshore with the intention of avoiding customs duty and taxes.

BAOA is advocating the adoption of clear guidelines on access to Indian airspace and airports for foreign-owned business aircraft. Under current rules, operators face a frustrating maze of bureaucracy resulting in delays and restrictions that negate the case for this mode of transportation.

“Arduous regulatory directives are restrictive for growth. There is no plan or policy, no FBOs or heliports and limited parking and hangar space for general aviation in India,” BAOA president Rohit Kapur told AIN. “The myth that business aircraft are toys of the rich for fun and frolic needs to be shattered. Business leaders fly these aircraft to save time, adding to productivity and GDP.”

The 39-member association is concerned that if the Indian government presses ahead with planned new restrictions, Indian aircraft might face retaliatory action overseas. There is concern that operating business aircraft into and within India has become so impractical as to discourage inward investment.

“Pain points [in India] start with getting clearances in a timely manner,” said Lex den Herder, vice president for government and industry affairs at Universal Weather & Aviation. In his view, India should consider a blanket or multiple operation system to reduce requirements for landing and overflight approvals, improve processing of formalities for customs and immigration and introduce a favorable climate for purchase and operation of business aircraft taxation and regulation.

The cumbersome and time-consuming procedures for buying, importing and operating business aircraft only make the situation worse. It takes three months to get security clearance for qualified pilots and a week or more to get clearance for foreign aircraft to land. In addition, there are arbitrary customs duties, high duties on spares, sales tax on aircraft transactions and high ground handling charges.

“Landing clearance [requests] submitted on a Friday will typically not be approved until 10 or 11 days later,” added den Herder. “Clearance Processing severely limits planning and schedule changes in this ever-changing business climate.” By comparison, according to Universal, clearances for China and India’s neighbor Bangladesh now take only 3 days, while four days are required for Dubai and one day for Saudi Arabia.

A classic example of India’s bureaucracy was provided by a flight into India made by executives with U.S. aerospace group Honeywell. Their aircraft had a hydraulic problem in Mumbai and they were unable to complete their planned business trip because it would have taken a week to get clearance to solve the issue. Mechanics flown in from the U.S. to oversee repairs were unable to obtain an airport pass to access the aircraft.

“The overall sense I get is that bureaucracy is clogging things up. From what I gather in the industry, the leadership of many OEMs say it is actually easier to ship something from outside India to India than within,” a General Electric customer was quoted as saying in a presentation by Universal at the recently held India-U.S. Aviation Summit in New Delhi. “It just takes too long to get parts and support to the spot where they are needed.”

“We try to plan to arrive overhead the airport with excess fuel because you can get one hour holding due to traffic saturation,” said a foreign pilot at the same meeting.

“We travel globally all the time and do not experience these types of delays and limitations anywhere else,” said den Herder.

Despite setbacks and a climate that is not entirely friendly to foreign investment, business aviation activity in India is growing, driven by a rising class of millionaires. BAOA predicts the Indian business aircraft fleet will grow three-fold over the next eight years, from the current 621 aircraft to almost 1,800 in 2020.

“Passenger growth in commercial aviation is estimated to rise at a compound annual growth rate of 17 percent. India needs to put into place the requisite safety mechanisms, airspace control and monitoring mechanisms, and landing clearance processes at a time when its airspace is already quite crowded. Now is the time to adopt best practices for India,” said an aircraft owner under condition of anonymity.

QuEST Global Engineering Appoints Chief Financial Officer

2012-02-04T17:44:00.000+05:30

Posted by- Neelam Mathews

Jan 4, 2012

Engineering services provider with headquarters in Singapore, QuEST Global Engineering, has appointed. Rajendra Kumar Shreemal as Chief Financial Officer who joins QuEST Global from Wipro where he spent over 15 years in various leadership positions.

Most recently, Shreemal held the position of Senior Vice President & Head - Treasury and Investor Relations. "He brings a wealth of experience with him to shape the future of QuEST. Engineering services market is a fragmented multibillion dollar industry and there is room for significant growth for niche players like QuEST," Ajit Prabhu, CEO, QuEST Global Engineering said.

SITA to provide passenger processing technology to San Diego International Airport

2012-02-04T12:49:00.002+05:30

Posted by- Neelam Mathews

Jan 4, 2012

IT solutions specialist, SITA, has been selected by San Diego International Airport to provide the passenger processing technology to underpin the airport’s $1 billion dollar improvement project.

San Diego is the eighth-largest city in the U.S and second largest in California.

San Diego’s “Green Build” is the largest project in the airport’s history and will allow it to expand from the 17 million passengers it currently serves to an estimated 33 million by 2030.

As part of this multi-year deal, SITA says it will provide a local departure control system (a boarding pass and bag tag issuing system for airlines without connection to their normal system), more than 300 information display monitors, over 100 common use self-service (CUSS) kiosks, along with 150 common use passenger processing system (CUPPS) workstations. All these will operate using the SITA AirportConnect Open platform, an integrated passenger processing solution that enables airlines to share the same ticket and gate counter computer equipment in a shared, secure and manageable environment. SITA’s AirportConnect Open is fully compliant with the new airline/airport industry CUPPS standard which has been adopted internationally, says SITA.

“Common use systems, which allow all check-in and boarding areas to be used by all airlines, are the ideal solution for an airport such as San Diego. By using SITA’s AirportConnect CUPPS platform, we will be able to use our limited space in a much more efficient way and allow more airlines to operate from here offering more choices to passengers,” Howard Kourik, Director of Information Technology at the San Diego International Airport, said:

San Diego’s terminal expansion is a joint venture with SITA, Turner Construction, PCL Construction Services Inc. and Flatiron Construction Corp. The work is due to be completed by August 2013.

Breaking! Oneworld Kingfisher defer entry to alliance

2012-02-03T22:23:00.000+05:30

Neelam Mathews

Feb 3 , 2012

The news is not good on the Kingfisher front. “Oneworld and Kingfisher have deferred the date –Feb 10 – slated for Kingfisher’s entry into the alliance. No new date has been given. It is not clear which way the fortunes of the carrier will run.

One is surprised to see the decision has come so close to the joining date.

This follows close on the heels of Kingfisher being suspended by the clearing house of IATA. This in effect means, Kingfisher can no longer sell joint tickets with any IATA carrier. It is not confirmed, but this could also mean blacklisting by IATA unless the money is paid in the required time.

IATA Billing Settlement Plan gives a credit period of 45 days.

In a press release, oneworld CEO Bruce Ashby said: "These are turbulent times for the airline industry in India and many other parts of the world. We have been working closely with Kingfisher Airlines over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld.
"We wish it well during this process and will work with Kingfisher Airlines with the aim of setting a new joining date once it is through this current period of turbulence."

Kingfisher Airlines Chairman Vijay Mallya added: "In light of the many priorities centred around Kingfisher Airlines' recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while. This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the oneworld alliance very shortly."

Emirates ups the antic in the Indian market

2012-02-03T16:55:00.002+05:30

Neelam Mathews

Feb 3, 2012

Emirates has announced a special sale offering 10% discount on airfares over 100 destinations across its network through travel agents. This offer is valid for bookings till February 4, 2012 for travel between February 2, 2012 and June 30, 2012.

Under this offer, an Economy Class Return airfare from Delhi to Dubai will start at INR 17,812 inclusive of taxes (Fares to other destinations mentioned below)

“We are committed to the Indian Market and this is yet another initiative in this direction. We aim to give them another to reason to fly Emirates and our sale is aimed at achieving the same while working together with our travel partners in the trade, “ Orhan Abbas - Vice President India & Nepal said.

Strike looms over French skies

2012-02-02T19:38:00.002+05:30

Neelam Mathews

Feb 2, 2012

Following a call for strike action from 6 to 9 February, Air France is doing all it can to limit the impact of this unions’ strike on its operations, says a statement.

Air France says it will directly inform its customers in case of cancellations, delays by telephone, text message or e-mail.

This service is free of charge and is available to all passengers worldwide. The confidential information will only be used to inform them in case of disruption.

Quikjet Cargo Airline set to take-off

2012-02-02T14:52:00.000+05:30

Posted by- Neelam Mathews

Feb 2, 2012

Bangalore-based- all-cargo airline, QUIKJET Cargo, says it has approval of Air Operating Certificate by the Director General of Civil Aviation (DGCA) paving the way for launch of the commercial services. It is not clear when the services will be launched.

QUIKJET Cargo has inducted an ATR72 Freighter aircraft with a Large-Cargo-Door, offering a payload of up to 8000Kg in an all-bulk loading configuration. The ATR 72F is known to be a versatile aircraft for regional feeder routes with ability to operate from short runways and offering quick turnaround times.

The large cargo door version facilitates the carriage of outsized loads and high-volume shipments. Going forward, the company will augment its fleet with aircraft offering varying payload to provide a regional and national air cargo network Quikjet has been certified for carriage of all classes of dangerous goods and hazardous materials.

While there has been an explosive growth in the number of passenger airlines, the air cargo segment has barely witnessed any activity. Presently, due to the lack of freighter aircraft in the country, the express and cargo industry is largely dependent on the belly space of passenger airlines, which is not conducive for time critical shipments or movement of dangerous goods.

“Our expertise and focus lies in providing much needed airport to airport air cargo connectivity. We are working on differing business models to provide customized and general air cargo solutions to businesses across the country. We plan to begin our operations with one aircraft and will gradually add aircraft to the fleet to have a pan India network,”. Capt. Preetham Phillip, CEO Quikjet Cargo said,

Farnair Switzerland AG, a European cargo airline, has bought a substantial stake in Quickjet Cargo Airlines in which Tata Capital Ltd is one of the key investors.

Quickjet Cargo is also backed by investors including Infrastructure Leasing and Financial Services Ltd, Infrastructure Development Infrastructure Development Finance Co. Ltd and AFL Pvt. Ltd.

New Director (D&D) for HAL

2012-02-01T20:37:00.000+05:30

Posted by- Neelam Mathews

Feb 1, 2012

Suvarna Raju has taken over as Director (Design & Development) of Hindustan Aeronautics Ltd. (HAL), today. He moves from being the General Manager of HAL’s Aircraft Division.

Raju has vast experience in various segments of aircraft production and was responsible for establishing licence production of Hawk Mk 132, DARIN II Prototype proving and production of 17 Jaguar twin-seater aircraft, 20 single-seat aircraft and upgrade of 29 NUP Jaguar aircraft, establishing the production facilities for Unmanned Arial Vehicle Lakshya and produced 27 UAV’s, says HAL.

His major achievements, according to a HAL statement are :

• Conceptualized and prepared Performance Based Maintenance Management
Support system for Hawk Mk 132 advanced jet trainer aircraft and brought on board the customer and MoD authorities to support the implementation of this project for the first time.

• Technology development for forming transparencies for Hawk, LCA and IJT aircraft. Developed MOPS in consultation with IISc to achieve self reliance and long term support to the customer.

• Develop Web based tools for project management on real time basis to enable the clear visibility of the project implementation status to various levels of management

• Development of technology for manufacturing P8I weapon bay door to demonstrate the capabilities of Indian Industry. Configuration control and production of Export products to Boeing – USA, Airbus – France and IAI – Israel.

• Conceived the requirement of Local Modification Committee requirement for Hawk Aircraft and ensured the formation of LMC for Hawk Aircraft.

• Successful completion of 42 Mirage aircraft Major Inspection at Overhaul Division, Bangalore. Member of the study team for life extension of Mirage aircraft calendar life.

• Responsible for establishment of new technologies at HAL viz. Mirage Canopy re-bubbling, Gas Turbine Starter overhaul facilities, undercarriage overhaul facilities and Radome painting facilities

• Established 3rd and 4th line workshop facilities for Jaguar, Mirage LRU’s.

• Associated with Elbit Systems of Israel in development and prototype testing of Project Legend.

SpiceJet now flies to Surat

2012-02-01T17:09:00.000+05:30

Posted by- Neelam Mathews

Feb 1, 2012

SpiceJet has started flights on Surat - Delhi and Surat - Mumbai routes.

With the launch, Surat has become SpiceJet’s second destination in Gujarat. SpiceJet also operates flights on Ahmedabad-Chennai and Ahmedabad-Trichy routes.

The airline says it is offering tickets for Surat-Mumbai route at as low as Rs 999 and for Surat-Delhi at Rs 1,499 (all inclusive).

Interestingly, the airline decided to start flights from Surat following requests from its fans on Facebook. SpiceJet currently has 311, 629 fans on Facebook.

“The launch of flights from Surat reiterates our commitment to provide affordable air connectivity in the country. We have been adding new destinations from non-metros in our effort to connect Tier-II and Tier-III and addition of Surat is step forward in this regard,” SpiceJet CEO Neil Mills said.

“We see huge potential in non-metros as people need affordable and timely connectivity to major destinations. We are expanding our fleet with new aircraft and expect to reach more and more destinations in coming period,” said S Natrajhen, Executive Director, SpiceJet.

The Federal Court of Canada rules Bell Helicopter infringed a Eurocopter patent

2012-02-01T00:32:00.000+05:30

Posted by- Neelam Mathews

Feb 1, 2012

In a ruling issued on January 30, the Federal Court of Canada ruled that Bell Helicopter intentionally infringed a patent of Eurocopter and awarded punitive damages and an injunction to Eurocopter. The patent covers an innovative helicopter landing gear design that Eurocopter developed and implemented on its EC120 and EC130 models, says Eurocopter.

The EC press release reads:

In its findings, the Court determined that Bell leased a Eurocopter EC120 helicopter equipped with the patented landing gear, studied the design of the gear, and created a “slavish copy” to be used on its new 429 model. Remarkably, when Bell employees raised concerns internally regarding similarities between the Bell landing gear and Eurocopter’s patented design, Bell’s management instructed engineers simply to “carry on.” The Court held that “This is a case of willful blindness or intentional and planned misappropriation [by Bell] of the…invention.”

Significantly, the Court determined that “Bell has misled and continues to mislead the public into believing that the Bell Model 429 is the first helicopter to use a sleigh type landing gear.” In fact, as the Court found, Bell “decided to import and copy the unique and new patented technology developed by Eurocopter.” Ultimately, the Court concluded that “Bell’s overall conduct is highly reprehensible and constitutes a callous disregard for the rights of Eurocopter.”

Accordingly, the Court found that Eurocopter was entitled to punitive damages due to both Bell’s infringement and its “deliberate and outrageous conduct in this case.” The Court has not yet determined the amount of damages due to Eurocopter. Finally, the Court issued an injunction enjoining Bell from manufacturing, using, or selling the infringing landing gear, and also ordered Bell to destroy all infringing landing gears in its possession.

As soon as Eurocopter filed the case, Bell quickly redesigned the landing gear on the 429 model. The Canadian court held that the redesigned landing gear did not infringe Eurocopter’s Canadian patent. Eurocopter is evaluating its options in this regard. Eurocopter has also filed claims in Washington, D.C. and Paris, France, contending that Bell’s redesigned landing gear violates Eurocopter's patents.

Eurocopter fully intends to continue defending its know-how and innovative technology, which has greatly contributed to its positioning as the world’s leading helicopter manufacturer.

Confirmation on MMRCA

2012-01-31T20:15:00.000+05:30

Posted by- Neelam Mathews

Here's a press release from Dassault to confirm the selection-

Rafale selected to equip the Indian Air Force

Saint-Cloud (France), January 31, 2012 - Following the announcement of the final selection of the Rafale in the frame of the MMRCA program, Dassault Aviation and its partners are honored and grateful to the Indian Government and the people of India to be given the opportunity to extend their long-lasting cooperation.
Dassault Aviation and its partners reiterate their commitment to meet the operational requirements of the Indian Air Force and underline their pride in contributing to India’s defence for over half a century.

MMRCA – Closer to fruition as Rafale gets letter for L1?

2012-01-31T18:34:00.001+05:30

Neelam Mathews

Jan 31, 2012

The MoD has kept its date for making a decision on its single largest defense deal yet. According to frantic and hectic agency and electronic media reports, the Dassault representative was handed over the letter by the MoD for being the lowest bidder of the around $18 billion 126 medium Multi Role Combat Aircraft for the Indian Air Force, over its competent adversary, Eurofighter.

The contract is yet to be signed and might take longer than envisaged given the defense coffers for this financial year are nearly empty.

So have the heads of states started calling up the PMO? No one knows how geo-politics will rear its head as the four member European Consortium leading the Eurofighter are big trade ($40billion) partners of India versus the $5billion trade France has with India.

“Now the trade between the two countries will increase,” says an Indian defense-related industry official.

The thorny issue of offsets will be the next big hurdle. Dassault’s Rafale does hold the advantage of having dealt with the Mirages in the past, though India never manufactured them. While tooling in certain aspects will be a new skill, there are many commonalities shared with the Rafale.

The outbid partner and its OEMs might find solace in the fact that there are many cross-supplies to Rafale.

The party might not be over as given the complexities of the Indian political and governance climate, nothing is over till its over, says a sceptic to Aerospace Diary.

Indian SME signs JV

2012-01-30T13:41:00.001+05:30

Neelam Mathews

Jan 30, 2012

Hyderabad's privately owned Small and Medium Enterprise company, Raghu Vamsi Machine Tools into manufacturing of precision engineering parts for Aerospace and Defense industries has entered into a joint venture with Industria de Tuberias Aeronauticas(ITA), a Spanish company and Reginson Engineering Ltd ("Reginson"), a British Company.

The JV will be named "Reginson India" and will have three partners, each contributing the right mix with ITA providing the market access , Reginson providing the product know how, and Raghu Vamsi providing the local market knowledge and industrial capabilities. The JV will manufacture machined components designed to be assembled into rigid and flexible pipes or ducts, i.e. End Fittings for Aircraft Engines.

The JV will invest Rs 25crore in 3 phases - Rs 10 Crores in the first year with a target of Rs 100 crores in the next 5 years. The joint venture is (possibly) the first of its kind in engine components manufacturing for the aerospace market in India. With plans to spend $100 billion on new aircraft,and defense equipment, this augurs well for the industry, said Vamsi Vikas, Managing Director of Raghu Vamsi Machine Tools

ITA is a wholly owned subsidiary of Industria de Turbos Propulsores S.A, ("ITP" (Subsidiary of Rolls Royce & Sener Aerospace), a leading Spanish company in the aero engines global market, partner to many commercial Original Engine Manufacturers such as Rolls Royce, General Electric, Pratt & Whittney and Honeywell. Additionally, ITP is principal partner in key European military engines including the EJ200 for the Eurofighter, TP400 (A400M) or the 390E (helicopter Tiger). ITA is a leading global pipes and ducts manufacturer in the aero engines market segment, with some presence also in the aircraft and renewable energy segments.

Reginson is a known connection accessories provider for the aerospace industry based in the UK.

Raghu Vamsi over the past one decade has been into the manufacture of high end and high quality precision parts, supplying parts to Aerospace & Defense Sector in India and abroad.

Japanese and Indian Coast Guard meet

2012-01-29T21:30:00.001+05:30

Posted by- Neelam Mathews’

Jan 29, 2012

A high level delegation led by Admiral Hisayasu Suzuki, the Commandant, Japan Coast Guard (JCG), is visiting India from 26-30 Jan 2012, for the 11^th High Level Meeting and Combined Exercises, with the Indian Coast Guard. “The visit, was in pursuance of the Memorandum of Cooperation, signed between the two Coast Guards on 24 November 2006, which stipulates that the heads of the two organizations meet alternately in India and Japan, to discuss maritime issues of mutual concerns and formulate a cooperative approach to address these”, says a statement.

The Memorandum of Cooperation between the two Coast Guards encompasses issues of maritime search and rescue, combating marine pollution, technical assistance for responding to natural disasters and exchange of information regarding crimes at sea, including smuggling and illicit trafficking.

The first ICG-JCG combined exercises were carried out in November 2000 off Chennai, in which one JCG ship participated and was overseen by a high level delegation of JCG, led by the then Commandant of JCG. This also laid the foundation for development of close interaction between the two organisations that included regular visits and exercises, sharing of information and expertise and training visits.

During the discussions, it was mutually agreed to strengthen the cooperation on evolving collaborative approach, in addressing a spectrum of maritime issues concerning safety and security. The visit was also very significant in providing renewed impetus to strong ties that exist between the two Coast Guards as the Japan Coast Guard Ship has visited India, after a gap of six years, for the combined exercises with the ICG off Chennai.

A delegation from the Information Sharing Center, Singapore established under the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) also participated in the exercise. This was significant in furthering the interaction among the participating agencies on anti-piracy issues, says ICG.

IndiGo Calls for New Guidelines in Safety Evaluation

2012-01-27T12:34:00.000+05:30

AIN Air Transport Perspective » January 23, 2012

by Neelam Mathews

India’s DGCA cited 11 engine changes among IndiGo airplanes as cause for an ETOPS review. (Photo: Neelam Mathews)

January 13, 2012, 10:05 AM

Indian budget carrier IndiGo has called for an upgrade of the archaic 1982 Air Safety Circulars (ASC) of the subcontinent's aviation regulator, the Directorate General of Civil Aviation (DGCA). It recommends that the DGCA adopt the European Aviation Safety Agency (EASA) April 2010 circulars, tailored to India’s specific requirements.

“Aircraft technology has undergone major changes and what was relevant three decades ago may no longer be significant,” Aditya Ghosh, IndiGo president, told AIN.

Two weeks ago, mayhem broke out following the accidental leak of a six-week-old DGCA unaudited report on “financial surveillance from safety perspective of scheduled airlines.” The report, which controversially draws a link between financial viability of airlines and safety, faced vociferous opposition by the industry, which argues there is no connection between an airline's financial health and its safety practices.

Paradoxically, the leaked report reveals a lack of communication between the DGCA's department responsible for air safety standards and hazards and the wing in charge of incidents. The October 2011 report notes 261 “snags” for IndiGo’s fleet of 46 aircraft, of which “the airline had reported only two incidents.” Had the DGCA realized they had been reported to the two relevant departments that did not cross-link, the agency would have recognized the discrepancy , a ministry of civil aviation official told AIN. “Such an oversight can seriously affect the image of India’s most successful and profitable airline,” he added.

“In view of a large number of premature engine removals (11) that took place [at IndiGo] in a short span (January to October 2011), the ETOPS need review,” says the report. This too became lost in translation as Ghosh indicated that seven of the engine removals complied with an FAA Airworthiness Directive (AD) on the HPC 3-8 drum for IAE V2500-A5 engines, which requires the change of “silver coated” nuts between the HPC 3-8 drum and the 9-12 HPC drum inside the engine to a “non-silver coated” nut. The deadline to comply with the FAA AD falls in January 2013, but IndiGo had proactively complied well ahead of time.

“The engine removals were not because of any performance degradation of the propulsion system but for pertinently complying with the AD or damage due to bird hits (three),” added Ghosh.

With major issues clarified, reacting to the DGCA’s comments that “the fast growth induction plan of IndiGo needs revision,” Ghosh noted that his airline’s acquisition plans will remain unhindered. Plans call for the addition of 12 aircraft by the end of this year, taking the IndiGo fleet to 60.

Lockheed Martin appoints executive vice president of Aeronautics

2012-01-27T11:52:00.000+05:30

Posted by- Neelam Mathews

Jan 27, 2012

Lockheed Martin Corporation announced that its board of directors has approved the appointment of Larry A. Lawson to serve as the executive vice president of the Aeronautics business area. The appointment follows the announcement of Ralph D. Heath’s retirement; the transition is effective on April 1, 2012.

Heath retires after a distinguished 37-year career with the Lockheed Martin Aeronautics business area and its heritage companies. In addition to leading the consolidation of the three business units to create the current Aeronautics business area, Heath led the revitalization of the C-130 program, international expansion of the F-16 program, and the development and delivery of the F-22 and F-35 fighter aircraft to secure the long-term future of the business.

Lawson, currently the vice president and general manager of the F-35 program, will be succeeded by Orlando Carvalho, who currently serves as vice president and deputy, F-35 program. Lorraine Martin will succeed Carvalho as vice president and deputy for the F-35 program; she is currently the vice president, C-130 program. George Shultz, currently vice president of Modernization programs for Aeronautics, will become the new vice president for the C-130 program.

Lawson has held a broad range of positions of increasing responsibility in his career of more than 32 years in aerospace. Prior to leading the F-35 program, he served as vice president and general manager of the F-22 Raptor program, and vice president of business development for Lockheed Martin’s Electronic Systems business area. Lawson started his career with McDonnell Douglas, and in 1986 joined Martin Marietta, where he served in various technical and managerial roles in capturing, developing and producing air-to-air and air-to-ground weapon systems.

Tom Enders to take over as EADS CEO

2012-01-26T23:36:00.000+05:30

Posted by – Neelam Mathews
Jan 26, 2012

EADS has announced its Board of Directors has designated Tom Enders to take over the role of CEO when Louis Gallois steps down at the end of his mandate.

Concurrently, Arnaud Lagardère will assume the role of Chairman of the Board presently held by Bodo Uebber.

This will take place after the company’s Annual General Meeting (AGM) on 31 May, 2012. These new mandates carry a five-year term.

EADS CEO Louis Gallois stated: “Tom Enders not only has a wide range of experience across our businesses, but strong leadership skills and charisma with an established track record. I am sure that he will extend his vision for EADS in the best interest of all its stakeholders and in particular of the great community of employees working together across our nations.“

Other top management positions

Following the recommendations of the Remuneration and Nomination Committee, the Board also announces further evolutions of the management team effective 1 June, 2012:

Fabrice Brégier will succeed Tom Enders and become CEO of Airbus, EADS' largest division, and Günter Butschek, presently Head of Operations of Airbus will be affected to the position of COO of Airbus.
Harald Wilhelm will become Chief Financial Officer (CFO) of EADS, alongside his present role as CFO of Airbus, following the request of Hans Peter Ring to retire from the company and pursue other objectives. Hans Peter Ring will be preparing his successor for this transition over the next months, and will remain close to him as a senior advisor until the end of 2012.
Marwan Lahoud, whose mandate comes up for renewal, is reappointed as Chief Strategy and Marketing Officer (CSMO).
Thierry Baril will assume the role of Head of Human Resources (HR) for EADS; he will retain his duties as Head of Airbus HR together with his expanded responsibility. Jussi Itävuori leaves the company after ten years as Head of HR for EADS. He continues to represent EADS in the Board of Directors of Patria in Finland.

Board of Directors

As for the Board of Directors, most current Board members will stand for re-appointment, carrying the experience gained over the last five years into the new Board. The following names will be proposed for appointment by the AGM:

Arnaud Lagardère, 50, Managing Partner of Lagardère SCA;
Tom Enders, 53, Chief Executive Officer of Airbus SAS;
Hermann Josef Lamberti, 55, Member of the Management Board of Deutsche Bank AG;
Sir John Parker, 69, Chairman of Anglo American PLC;
Michel Pébereau, 70, Honorary President of BNP Paribas;
Lakshmi Mittal, 61, Chairman and Chief Executive Officer of ArcelorMittal;
Bodo Uebber, 52, Member of the Management Board of Daimler AG;
Wilfried Porth, 52, Member of the Management Board of Daimler AG;
Dominique D’Hinnin, 52, Co-Managing Partner of Lagardère SCA;
Jean-Claude Trichet, 69, Former President of the European Central Bank;
SEPI, the Spanish state holding company, will provide the name of the director representing it in the coming weeks.

Cassidian’s new-generation Vehicle Protection Jammer

2012-01-26T22:05:00.000+05:30

Neelam Mathews

Jan 26, 2012

Cassidian, the defense and security division of EADS, has developed a new-generation Vehicle Protection Jammer that significantly enhances the protection of military vehicles against attacks by Radio-Controlled Improvised Explosive Devices. After passing extensive field trials, the series production ramp-up started in December 2011.

"Lessons learnt in recent conflicts prove that radio-controlled explosive devices remain one of the major threats in asymmetric scenarios," explained Elmar Compans, head of Sensors and Electronic Warfare at Cassidian. "Progress in digital technology now gives us the means to counter this threat by far more effectively than hitherto possible", he said in a statement.

Cassidian's Vehicle Protection Jammer uses the new, ultra-fast Smart Responsive Jamming Technology to enhance the protection level substantially. It detects and classifies radio signals intended to ignite a roadside bomb. Then, it responds and transmits in real-time jamming signals tailored exactly to the hostile frequency band. Thereby, it is capitalizing on new digital receiver and signal processing technologies to achieve reaction times of well below a microsecond. This avoids the huge diverging loss of output power inherent in earlier-generation barrage jammers and concentrates the jamming energy on currently active threats only.

The Vehicle Protection Jammer core equipment is platform-independently certified according to German safety regulation including the protection of operators and maintenance personnel. It can easily be built into even small vehicles and therefore is ideally suited to replace vintage equipment.

FinnAir- The ultimate in Good PR!

2012-01-26T19:14:00.000+05:30

Neelam Mathews
Jan 26, 2012

Dear All,

I seriously recommend that you all click this link to see how Finnair regaled their passengers on the Delhi- Helsinki flight on Jan 26.

Think I'm going to make it my preferred carrier to Europe/US!

Please tell me- why couldn't any of our airlines think of this brilliant idea?!!
Please click on-

http://t.co/NviWvGBH

Australian Competition and Consumer Commission and AirAsia fares

2012-01-26T17:26:00.000+05:30

Neelam Mathews

Jan 26, 2012

Media Statement issued by AirAsia:

AirAsia Berhad is currently investigating allegations in Court documents filed by the Australian Competition and Consumer Commission (ACCC) in the Federal Court of Australia on 17 January 2012 in connection with published fares for certain flights on the company's website to consumers in Australia.

The company takes its legal and everyday commitment to its consumers very seriously and will be carefully reviewing the contents of the ACCC's claims.

AirAsia always seeks to conduct its business fairly and in an ethical and proper manner and in full compliance with all applicable laws. The particular issues with the relevant flights related to whether all taxes and charges were displayed for customers which appears to have arisen from an IT issue in September 2011.

As soon as we became aware of the matter based on the ACCCs complaint we have taken corrective action and are focused on ensuring that our customers have all relevant information on our fares. We emphasise that we were not aware of the matter before the ACCC brought its proceedings and as soon as the issue became known to us we have resolved the issue on our website.

The issue does not affect the AUD99 promo fares for the Sydney-Kuala Lumpur route launched by AirAsia X recently.

We intend to constructively resolve the matter with the ACCC to address any issues that they may have in relation to this matter and to address any issue our customers may have had.

Update with Pixs -Lakshya II

2012-01-26T17:14:00.000+05:30

Credit- DRDO

Eurocopter boosts its sales by 12 percent in 2011

2012-01-26T13:04:00.001+05:30

Posted by- Neelam Mathews

Jan 26, 2012

Growing its international footprint and developing services businesses and optimizing internal operations led Eurocopter to generate a record high annual turnover in 2011.

The deliveries of 503 rotary-wing aircraft in 2011, along with Eurocopter’s enhanced support and services activities, generated a turnover of 5.4 billion euros – representing a growth of 12.5 percent from the previous year. Deliveries included the 1,000th Dauphin, received by Indian operator Pawan Hans; the 1,000th EC135, provided to the German ADAC automobile club – one of Eurocopter’s longest-standing customers; and the 100th EC225, accepted by the Bristow Group.

New helicopter orders also picked up last year, with the 457 net bookings representing a value of 4.7 billion euros, compared with the 346 helicopters sold in 2010. The year’s business included initial firm orders for the new EC175; major bookings for the EC225 from CHC Helicopter, CITIC Offshore Helicopter Co., Bristow Helicopters and RTE; the continuation of orders from the U.S. Army for the UH-72A Lakota; and the first large booking for Eurocopter’s enhanced EC145 T2 helicopter version from Germany’s DRF Luftrettung.

“We marked many key achievements during the past 12 months, which were the results of our company’s across-the-board strategy to invest, innovate and improve as we continue Eurocopter’s industry leadership,” said President & CEO Lutz Bertling.

Deliveries of new production helicopters represented 51 percent of Eurocopter’s 2011

consolidated turnover, while support and services continued its growth to account for 38 percent of the total. The remaining 11 percent was generated by development and other activities.

Order bookings

Export sales outside of Eurocopter’s home country nations remained the primary source of business, at 77 percent of total bookings in 2011. Civil contracts accounted for 68 percent of the order volume, with military sales representing the remaining 32 percent.

Bookings by product range

The strongest growth in 2011 sales was registered by Eurocopter’s Ecureuil/Fennec/EC130

Family and the EC145:

· EC120 Colibri: 13

· Ecureuil/Fennec/EC130 Family: 238

· EC135: 42

· EC145 (including the UH-72A Lakota): 104

· Dauphin/Panther/EC155 Family: 21

· EC175: 4

· Super Puma/Cougar EC225/EC725 Family: 35

For the EC175 and EC225, several multi-year contracts were signed, for which the customers’ bookings will be logged based on annual purchase orders.

EXCLUSIVE! SriLankan Engineering bags its largest MRO contract

2012-01-26T12:18:00.001+05:30

Posted by- Neelam Mathews
Jan26, 2012

SriLankan Engineering has been awarded its largest ever contract for aircraft maintenance by IndiGo.The expertise, experience and efficiency ofthe MRO provider was cited as a reason for the choice, Aerospace Diary learns.

IndiGo has awarded SriLankan Engineering 26 C-checks on Airbus A320 aircraft forg the year 2012. This is the fourth consecutive year that IndiGo contracted SriLankan Engineering for the lion’s share of maintenance programs on its fleet.

“IndiGo’s annual major maintenance contract for four consecutive years to us is a tribute to the extraordinary performance of our staff during the preceding years. We have achieved an excellent record of on-time completion of maintenance programs, as well as the highest quality of work. This has been the result of the efforts of aircraft engineers, technicians, managers, and all other staff in every department of SriLankan Engineering,” says Priyantha Rose, Head of Engineering.

“We are continuing to build on our fast growing reputation as a player to be reckoned with in the Maintenance-Repair-Overhaul (MRO) industry in this region, and we must now continue to improve on our performance in order to secure more customer airlines,” he added.

SriLankan Engineering is currently also in discussions with other airlines in India, Pakistan and a European Flag carrier, with the aim of obtaining further maintenance contracts.

The IndiGo program will run concurrently with C-checks on our own fleet throughout next year and the long-haul fleet Cabin upgrades which is scheduled to complete in May.

IndiGo, India’s largest low-fare carrier first awarded SriLankan Engineering a contract to carry out C-checks on 13 aircraft in 2009 and followed it up with another 13 in 2010 and 20 aircraft in 2011.

SriLankan Engineering holds the prestigious EASA 145 certification from the European Aviation Safety Agency, and the airline has also won awards for Best Global Operator of both A330 and A340 aircraft from Airbus Industrie, in the small airline category.

Lakshya II demonstrates capability

2012-01-25T20:32:00.000+05:30

Neelam Mathews

Jan 25, 2012

Flying at a sea skimming height of about 15 m. at DRDO’s test range near Balasore, Lakshya-II the advanced version of DRDO’s Pilotless Target Aircraft today demonstrated its full capability, says DRDO.

“In a flight lasting over 30 minutes, it was made to dive down from an altitude of around 800m. to just 12m. and maintained required altitude for the specified time before demonstrating auto climb-out,” adds the DRDO statement.

The flight demonstrated various technologies and sub-systems including software correction to auto rudder scheme done to prevent loss of mission, engaging and flying in way point navigation mode while carrying 2 tow targets. During the flight one of the tow targets was released and the other was deployed while way point navigation was on. This was the 10^th flight of Lakshya-II PTA and the first time that the ultimate capability of the Lakshya-II, was demonstrated achieving all the user’s objectives.

Lakshya-II has been designed and developed by the Bangalore base Aeronautical Development Establishment, a premiere DRDO lab specializing in UAVs and flight control systems.

AIA says U.S National and Economic Security at Stake

2012-01-25T20:18:00.002+05:30

Posted by- Neelam Mathews

Jan 25, 2012

“Sequestration budget cuts are poised to strangle the U.S economy and devastate our military,” says Aerospace Industries Association.

AIA President and CEO Marion C. Blakey released the following statement:

“The State of the Union can be measured in many ways, but first and foremost is the security of the nation. By that measure, the future of our country is unclear. The President’s Budget Request scheduled for release Feb. 13 targets defense for a $487 billion reduction over ten years.

“However, that isn’t the end. Defense faces more than five hundred billion dollars of additional cuts under a sequestration scenario driven by politics rather than security. Simply put, this will jeopardize the nation’s security, knee-cap the technological edge we’ve enjoyed for generations in aerospace and defense and risk as many as one million American jobs. As a nation, we need to put our foot down when it comes to any more defense cuts and agree to a bipartisan solution to sequestration.

“Our air and naval fleets are older and smaller than they’ve been in decades and we stand to lose vital industrial and security capabilities. These times demand a full commitment from the president and the congressional leaders of both parties to invest in the industrial base that has kept our country safe and developed the most impressive technology and research anywhere in the world.”

Background

The failure of the debt “Supercommittee” created by the Budget Control Act, triggers one trillion dollars in automatic, across-the-board discretionary spending reductions falling on our military and domestic programs beginning in January 2013. Defense Secretary Leon Panetta calls these “devastating” and “dangerous” cuts “completely unacceptable,” and warns they would hollow out the military and generate “unacceptable risk in future combat operations.” The bipartisan Chairs and Ranking Members of the House and Senate Armed Services Committees all oppose these “draconian” reductions, as Chairman Levin described them.

This would also undermine the nascent economic recovery, eliminating between one and 1.5 million jobs, according to economists at the University of Maryland and George Mason University. DOD predicts a full percentage point would be added to the national unemployment rate, which has only just come down below nine percent.

Etihad- On a buying spree

2012-01-25T18:15:00.000+05:30

Posted by- Neelam Mathews
Jan 25, 2012

Etihad Airways is acquiring a 40 percent stake in Air Seychelles as part of a strategic partnership between the two carriers.

Etihad will increase frequencies between Abu Dhabi and Mahé from four per week to dailies.

Etihad picked up a 29% stake in Air Berlin, on 24 January.

India gets Akula II

2012-01-24T18:52:00.000+05:30

Posted by- Neelam Mathews
Jan 24, 2012

Russia has finally transferred the K-152 Nerpa nuclear-powered Akula-II Class submarine - on a 10-year lease to the Indian Navy, Russian news agencies have said.

The Nerpa was handed over to the Indian Navy at the Zvezda shipyard in the far eastern territory of Primorye.

India becomes the sixth country in the world to operate the nuclear submarine after the US, Russia, Britain, France and China.

Reform America’s export control system, says AIA

2012-01-23T22:21:00.000+05:30

Posted by- Neelam Mathews

Jan 23, 2012

The U.S. space industry is losing its competitive edge and risks falling short of future national security requirements unless government reforms our export control system and promotes the international competitiveness of U.S. industry, according to a new report released by Aerospace Industries Association (AIA).

“A strong and globally competitive space industrial and supplier base is a major national security asset,” said AIA President and CEO Marion C. Blakey. “Reforming America’s export control system and promoting space exports will better serve our national security and bolster our economy and technological leadership.”

The report, Competing for Space: Satellite Export Policy and U.S. National Security, surveys U.S. satellite systems and components manufacturers about the challenges the space industrial base faces as a result of U.S. export policies. Among the adverse impacts on industry are loss of global market share and dampening of satellite component sales opportunities to sustain U.S. space technology leadership.

AIA’s survey found more than 70 percent of respondents incurred lost sales due to the current export control system. Commercial space system suppliers—who also often build critical components essential to our national security—face some of the most daunting challenges, with one firm citing annual losses of $5 million because of these impediments.

“Unlike the rest of the world, U.S. law requires export control agencies to regulate commercial satellites and components the same as anti-tank missiles,” Blakey said. “Clearly, it’s time for a change. Promotion of satellite and space exports to U.S. allies and partners will help ensure our security and aerospace industrial base remains second to none.”

AIA’s recommendations to policymakers include:

• Support legislation that would return authority over commercial satellite export control jurisdiction to the administration

• Remove low/no risk technologies from the U.S. Munitions List

• Advocate for space exports to U.S. allies and partners

• Develop easier cooperative arrangements on space technology between the U.S. government and military and our foreign allies and partners

BAE Systems gets new CEO in India

2012-01-23T21:33:00.000+05:30

Posted by- Neelam Mathews

Jan 23, 2012

Dean McCumiskey has been appointed Managing Director and Chief Executive of BAE Systems’ India operations with effect from March 2012. Dean is currently Group Chief Information Officer based in the company’s London headquarters and will succeed Andrew Gallagher who takes up new responsibilities as BAE Systems’ Director of Audit, based in the UK.

McCumiskey will be responsible for leading the next phase of BAE Systems’ business development in India, where the defense, aerospace and security company directly employs around 100 people and has a growing presence through strategic investments in technology sharing and industrial partnerships, says a statement.

Dean McCumiskey has experience of the global defense, aerospace and security industry, having held senior management positions in both the US and Europe. Prior to taking up the role of Chief Information Officer, he was responsible for business winning activities in Europe, Canada and South America, leading multi-million dollar campaigns covering the air, land, maritime and security sectors. BAE Systems is evaluating the potential for establishing security sector capabilities in India, to help provide mission-critical solutions, tools and support to key client communities.

BAE has two joint ventures, Defense Land Systems India (DLSI), a land systems focused company operated in partnership with Mahindra and Mahindra, and BAeHAL, a software engineering joint venture with Hindustan Aeronautics Limited (HAL).

Recent highlights for BAE Systems in India include a £59 million contract for the provision of spares and ground support equipment to the Indian Air Force to aid the Hawk training aircraft operations, bringing the total value of Hawk related contracts won in India to more than £600 million in the last 18 months.

In the land sector, serial production of DLSI’s mine protected vehicle is underway and the joint venture is competing to win a share of a 2500+ track and wheeled combat vehicle program.

Discussions between the Indian and US Governments are ongoing in relation to a possible sale of BAE Systems’ ultra-light M777 howitzer, in support of the Indian Army’s modernisation program, adds the statement.

Alenia Aermacchi launches the NG TD nEUROn

2012-01-22T12:15:00.000+05:30

Posted by – Neelam Mathews

Jan 23, 2012

On Jan 19, nEUROn, the technology demonstrator for a European UCAV (Unmanned Combat Aerial Vehicle) was officially presented by Charles Edelstenne, Chairman and Chief Executive Officer of Dassault Aviation, to the representatives of the six countries collaborating in the project (France, Italy, Sweden, Spain, Switzerland and Greece).

This represents a triple "first" for the aerospace industries of the countries participating in the project: the first stealth combat aircraft, the first UCAV developed through cooperation between several European countries and the first combat aircraft entirely designed and developed on a virtual platform, says Aermacchi.

The nEUROn's Roll-Out comes after five years of design, development, assembly and static testing. Very soon the first engine tests will be carried out, with plans for a maiden flight in mid 2012. Subsequently a complete flight test program will be effected over a period of two years in France, Sweden and Italy. These tests will be for quality of flight, level of invisibility to radar (stealth), air to ground missiles fired from an internal bay, integration in a C4i environment (command, communication control, computer and intelligence) and tests of an unmanned platform in the airspace.

Giuseppe Giordo, CEO of Alenia Aermacchi and responsible for the Aeronautics sector of Finmeccanica, said: “For years we have been energetically engaged in the development of highly innovative products with means of development, manufacture and use that are entirely new in comparison with the traditional aeronautical context. Great attention has been given to the activities of technological development and simulation of unmanned aerial vehicles, capable of fulfilling complex missions autonomously, such as the Alenia Aermacchi's Sky-Y. Extremely sophisticated machines whose use and application is set to expand enormously over the coming decades. For Alenia Aermacchi.

The Roll-Out of the nEUROn represents a very important goal because right from the start we have poured in to this project multiple resources: human, financial and technical. Now an important and decisive step has been taken within the ambitious nEUROn project of designing, constructing and testing the first European UCAV (Unmanned Combat Aerial Vehicle) simulator with stealth characteristics”, adds the statement.

The nEUROn program, launched by the French Ministry of Defense and supported by Italy, Sweden, Spain, Greece and Switzerland represents a very important effort to develop new technologies and create the foundations of future programs for unmanned aerial vehicles for military use.

The objective is to create a full-scale technology demonstrator for an UCAV (Unmanned Combat Aerial Vehicle). From the industrial point of view the nEUROn is a project led by Dassault Aviation with Alenia Aermacchi as its principal industrial partner, having a share of 22% in the project and responsibility for systems and subsystems. Alenia Aermacchi also, as national team leader, leads a group of Italian companies which includes SELEX Galileo (a Finmeccanica company).

Long Weekend Read - The Limits of the Pakistan-China Alliance

2012-01-20T22:03:00.000+05:30

By Lisa Curtis and Derek Scissors, Ph.D.

(Heritage Foundation)

Posted by- Neelam Mathews

Jan 20, 2012

China’s concerns over Pakistan’s future stability will likely limit the extent to which it will help Pakistan out of its economic difficulties. While China has an interest in maintaining strong security ties with Pakistan, the economic relationship is not very extensive and the notion that Chinese ties could serve as a replacement for U.S. ties is far-fetched. Instead of wringing hands over Chinese influence on Pakistan, the U.S. should seek cooperation from Beijing in encouraging a more stable and prosperous Pakistan—which will benefit all parties involved.

In the wake of the U.S. raid on Osama bin Laden’s compound last May and deteriorating relations between Islamabad and Washington, Pakistani leaders have sought to play up their country’s relations with China, touting Beijing as an alternative partner to Washington. However, China’s concerns about the future stability and development of Pakistan will limit the extent to which China will bail Pakistan out of its current economic difficulties, and the degree to which China will seek to drive a wedge between Islamabad and Washington.

Chinese security interests in Pakistan are driven primarily by China’s desire to contain India. Beijing has built up Pakistan’s conventional military as well as nuclear and missile capabilities over the years to help keep India off balance and focused on threats emanating from Pakistan. China has shown little interest in propping up Pakistan’s economy and has not provided substantial economic aid, even during times of need.

In the past, U.S. officials have worried that pushing Pakistan too hard to crack down on terrorists could drive Islamabad more firmly into Beijing’s embrace. But China’s lukewarm response to Pakistan’s recent overtures demonstrates that there are limits to what Islamabad can expect from its “all-weather friend”—a term often used by Pakistani officials when referring to China.

U.S. policymakers must recognize these limits to the benefits that Pakistan will receive from China. China is increasingly concerned about Islamist extremism and terrorism in Pakistan, and there may be room for Washington to seek Beijing’s cooperation in encouraging a more stable and prosperous Pakistan.

Long-Standing Security Ties

Pakistan and China have long-standing strategic ties, dating back five decades. China maintains a robust defense relationship with Pakistan and views a strong partnership with Pakistan as a useful way to contain Indian power in the region and divert Indian military force and strategic attention away from China. The China–Pakistan partnership serves both Chinese and Pakistani interests by presenting India with a potential two-front theater in the event of war with either country. Chinese officials also view a certain degree of India–Pakistan tension as advancing their own strategic interests, as such friction bogs India down in South Asia and interferes with New Delhi’s ability to assert its global ambitions and compete with China at the international level.

China is Pakistan’s largest defense supplier. The Chinese JF-17 Thunder fighter aircraft is currently under serial production at the Pakistan Aeronautical Complex, and an initial batch of 250 to 300 planes is scheduled. China also plans to provide Pakistan with J-10 medium-role combat aircraft, with an initial delivery of 30 to 35 planes. Other recent sales of conventional weapons include F-22P frigates with helicopters, K-8 jet trainers, T-85 tanks, F-7 aircraft, small arms, and ammunition. China also helped Pakistan build its Heavy Mechanical Complex, Aeronautical Complex, and several defense production units. While the U.S. has sanctioned Pakistan in the past—in 1965 and again in 1990—China has consistently supported Pakistan’s military modernization.

There are signs that Pakistan–China defense cooperation received a boost following the United States’ May 2 raid on Osama bin Laden’s hideout in Abbottabad, Pakistan. Two weeks after the raid, Pakistan’s prime minister, Yousuf Raza Gilani, traveled to Beijing in an attempt to showcase the China–Pakistan relationship as the pillar of Pakistan’s foreign policy. The U.S. decision to pursue the bin Laden raid unilaterally without prior notification of Pakistani officials incensed the Pakistani military leadership.

To demonstrate its displeasure over the operation, Pakistan kicked out 90 U.S. military trainers from the country and turned its attention to its “all-weather” friend. In response to Pakistan’s overtures, China called on the U.S. to respect the “independence, sovereignty and territorial integrity” of Pakistan and announced it would expedite the delivery of 50 JF-17 aircraft equipped with upgraded avionics to Pakistan. However, when Pakistan’s defense minister claimed that Pakistan had invited China to start building a naval base at Gwadar Port, Chinese officials publicly dismissed the notion. Despite Pakistani assurances that they did not provide Chinese officials with access to wreckage from the stealth helicopter used by U.S. Special Forces in the bin Laden raid, U.S.
intelligence officials reportedly believe the Pakistanis did allow Chinese engineers to inspect the helicopter parts before they were returned to the U.S.

Nuclear and Ballistic Missile Cooperation

It is widely acknowledged that China transferred equipment and technology and provided scientific expertise to Pakistan’s nuclear weapons and ballistic missile programs throughout the 1980s and 1990s, enhancing Pakistan’s strength in the South Asian strategic balance. The most significant development in Chinese–Pakistani military cooperation occurred in 1992, when China supplied Pakistan with 34 short-range ballistic M-11 missiles. Beijing also built a turn-key ballistic missile manufacturing facility near Rawalpindi, and helped Pakistan develop the 750-km-range solid-fueled Shaheen-1 ballistic missile.

In a recently released letter from 2003, Abdul Qadeer (A. Q.) Khan, the Pakistani nuclear scientist who was instrumental in developing Pakistan’s nuclear weapons program and who confessed in 2004 to running a nuclear black market from Pakistan, suggests that China had supplied Pakistan with significant quantities of low-enriched uranium, allowing Pakistan to accelerate the production of weapons-grade uranium in the early 1980s.

China helped Pakistan build two civilian nuclear reactors at the Chasma site in the Punjab province under agreements made before it joined the Nuclear Suppliers Group (NSG) in 2004. More recently, China has been planning to build two additional new nuclear reactors for Pakistan (Chasma III and Chasma IV), but the U.S. has indicated that Beijing must first seek an exemption from the NSG for any future nuclear technology transfers. When China joined the NSG, it subjected itself to rules that forbid the sale and export of nuclear technology to countries that have not signed the Nuclear Nonproliferation Treaty (NPT).

Though Pakistan considers China a more reliable defense partner than the U.S., Islamabad should also recognize that China’s support has its limits, especially during times of conflict and tension between New Delhi and Islamabad. When Pakistan sought Chinese assistance during its 1965 war with India, Beijing encouraged Islamabad to withdraw its forces from Indian territory. During the 1999 Indo–Pakistani border war in Kargil, Beijing privately supported U.S. calls for Pakistan to withdraw its forces from the heights of Kargil on the Indian side of the Line of Control to defuse the crisis, and apparently communicated this stance to Pakistani leaders.

Rising Concerns about Terrorism

One source of tension between Beijing and Islamabad that has surfaced over the last few years is Chinese concern over some Chinese Uighur separatists receiving sanctuary and terrorist training on Pakistani territory. The Chinese province of Xinjiang is home to eight million Muslim Uighurs, many of whom resent the growing presence and economic grip of the Han Chinese on the region. Some Uighurs have agitated for an independent “East Turkestan.” To mollify China’s concerns, Pakistan has begun to clamp down on Uighur settlements and on religious schools purportedly used as training grounds for militants. Media reports indicate that Pakistan may have extradited as many as nine Uighurs to China in April 2009 after accusing them of involvement in terrorist activities.

While it is unclear which percentage of Uighur separatists are affiliated with al-Qaeda, terrorism expert Walid Phares testified before the U.S.–China Economic and Security Review Commission in 2009 that jihadists make up about 5 percent to 10 percent of the Uighur movement.] He has also noted the presence of a “jihadi web” in Pakistan that includes Uighur extremists.

In July 2009, ethnic violence broke out in Urumqi, the capital of Xinjiang province, in which at least 197 people were killed and 1,700 injured—mostly Han Chinese. The rioting began when roughly 1,000 Uighur protesters were confronted by riot police. The Chinese government blamed the violence primarily on Uighur exiles, but Pakistani radical influence was also cited as contributing to the violence.

More recent attacks in Xinjiang in late July 2011 that killed 20 people prompted Chinese criticisms of Pakistan for failing to crack down on the training of Uighur separatists in the tribal areas bordering Afghanistan. The Chinese rebuke mirrored U.S. calls for the Pakistani government to do more to rein in Afghan insurgents who also find sanctuary in Pakistan. Local Chinese authorities in Xinjiang charged that the person who conducted the July attacks in Kashgar had received training in Pakistan. The accusations were repeated in the China Daily newspaper. Pakistani political leader Mushahid Hussain acknowledged in an op-ed that another attack similar to the one in Kashgar over the summer would have serious implications for China–Pakistan ties.

Chinese officials are increasingly connecting the level of terrorist activity in Pakistan to instability in western China. One Chinese academic has noted in his writings that China has developed a more neutral position on the Indo–Pakistani dispute over Kashmir over the past decade in part because China believes that the dispute could have implications for ethnic-religious unrest in China, especially in Tibet or Xinjiang.

Tension has also surfaced between Islamabad and Beijing in recent years over attacks by Islamist extremists on Chinese workers, which number about 10,000 in Pakistan. This tension came to a head in summer 2007 when Islamist militants kidnapped several Chinese citizens whom they accused of running a brothel in Islamabad. China was incensed by this incident, and its complaints to Pakistani authorities likely contributed to Pakistan’s decision to finally launch a military operation at the Red Mosque in Islamabad, where the militants had holed up for seven months. Around the same time, three Chinese officials were killed in Peshawar. Several days later, a suicide bomber attacked a group of Chinese engineers in Baluchistan. Senior Chinese leaders, such as President Hu Jintao, have called on Pakistani leaders to increase protection of Chinese workers in the country and threatened to pull funding from projects where Chinese workers have come under threat.

Another sign that China was feeling increasingly compelled to pressure Pakistan to adopt stricter counterterrorism policies was when, in December 2008, Beijing dropped its resistance to banning the Jamaat-ud-Dawa (JuD—a front organization for the Pakistan-based Lashkar-e-Tayyiba, responsible for the November 2008 Mumbai terror attacks) in the United Nations Security Council. Before then, China had vetoed Security Council resolutions seeking to ban the JuD.

The Economic Relationship: Surprisingly Limited

Pakistan’s portrayal of its relationship with China features exaggeration of the economic dimension of the relationship. Pakistani media routinely report huge numbers for investment and financing with the People’s Republic of China (PRC), numbers that cannot be verified by any independent source, including by the Chinese government or the Chinese companies supposedly involved. While Pakistani officials talk of a total of $25 billion in Chinese investment in Pakistan so far, the PRC’s official figure of direct investment through 2010 is $1.83 billion.

The Heritage Foundation’s China Global Tracker documents investments as well as engineering and construction contracts of $100 million or more since the beginning of 2005, as reported by the companies. The China Tracker shows only $1.2 billion in such investment and contracts combined through 2010. These are dominated by telecommunications, with China Mobile acquiring Paktel and investing in improvements in Pakistan’s telecommunications system, such as paying the Chinese engineering company Great Wall to launch a satellite.

In sum, Chinese investment activity in Pakistan is quite modest. It is a negligible fraction of total Chinese outward investment of more than $250 billion since 2005 and dwarfed by Chinese activity in Indonesia, for example. This should not be a surprise. Chinese outward investment is motivated more by domestic economic needs than by foreign policy goals. What the PRC deems to be strategic sectors—iron, copper, oil, coal, and gas—are materials needed to keep domestic industry humming and hundreds of millions of people employed. Farmland is similar, though it has proven more difficult to acquire. Pakistan has comparatively little in the way of any of these resources.

ANALYSIS: Good times ending for Kingfisher?

2012-01-20T20:46:00.001+05:30

By: Neelam Mathews

FlightGlobal

6 hours ago

Anyone looking for an example of how hard times can reverse fortunes in the airline business need look no further than Kingfisher Airlines and its flamboyant boss, the high-living Indian booze baron Vijay Mallya.

Once a leading light among the new, private ventures poised to profit from India's burgeoning wealth and seemingly insatiable appetite for domestic and international air travel, Kingfisher - named after one of the most popular brands in Mallya's United Breweries, one of the world's biggest drinks companies - has stumbled into 2012 with a crushing debt burden, a crippled fleet and a desperate need for a financial saviour.

At its height, Kingfisher ran an extensive domestic network, targeting the business traveller in particular. The airline built a fleet of 60 Airbus and ATR aircraft with nearly 150 on order or option and, between the main operation and low-cost subsidiary Kingfisher Red, according to Flightglobal's ACAS database. Mallya's aviation business controlled nearly 28% of the Indian domestic market in 2008 - compared with just 16.3% for Air India.

However, 2008 turned out to be the summit for Kingfisher. In November of that year, after three years of operations, Mallya shelved plans to develop regional and long-haul international services because of poor market conditions.

Just how poor soon became evident. After years of double-digit passenger growth fuelled by the launch of carriers such as Kingfisher and ticket prices driven low by competition, rising operating and fuel costs led to ticket price hikes - and passenger numbers fell by nearly 5%.

For Kingfisher, over-investment has proved costly. In its fiscal year to 31 March 2011, Kingfisher lost Indian rupees (Rs) 10.3 billion ($227 million), a result which did reflect some stabilisation after a loss of Rs16.5 billion the year before. However, the carrier is going backwards again, having lost Rs4.69 billion in its most recent second quarter, more than double its loss for the comparable year-ago period.

Whether Kingfisher survives to carry out a plan - supposedly from next month - to exit the low-cost market and concentrate on higher-margin premium passengers remains to be seen. Earlier this month, India's aviation regulator, the Directorate General of Civil Aviation (DGCA), recommended Kingfisher be wound up because it feared the carrier's financial strife was compromising safety; the DGCA found that nearly a third of Kingfisher's fleet was grounded because of a lack of spares, engines and other components, and the airline was actually cannibalising aircraft to keep others flying.

Then, last week, ATR removed Kingfisher's 38-aircraft order from its backlog, describing the airline as an "unreliable customer".

Kingfisher is reported to be seeking to raise funds through sale and lease back of its aircraft. "This is a typical process that airlines have adopted during more challenging economic times. However, against a background of increasing oil prices, taxes on fuel and pressures on margins, it is questionable how effective such strategies will be in the longer term and without major investment," says Suzanne Rab, a partner in London law firm King & Spalding.

Kingfisher, in any case, clearly needs more than a sale-leaseback cash boost. It owes $1.23 billion to a consortium of 13 banks led by State Bank of India (SBI) that took a 23% stake in the airline as part of a debt restructuring deal. Recently, SBI chairman Pratip Chaudhuri publicly called the carrier a non-performing asset, declaring it in default. Its soaring debt burden has resulted in a backlog of non-payments to lessors, vendors for spares, catering, groundhandling, airport charges, fuel companies and overdue salaries to its own staff.

If it is any comfort to Mallya, at least he has company. Other major privately owned airlines in India - certainly including Jet Airways and SpiceJet although possibly excluding IndiGo - are in dire need of fresh equity investment. All are suffering in part from the relative devaluation of the Indian rupee compared with the US dollar, which exacerbates the rising cost of dollar-denominated fuel. In addition, state-owned Air India is widely regarded as a sink for government funds, which keep it flying while distorting the Indian market with subsidised fares.

A proposal backed by the aviation ministry to permit foreign investors to own up to 49% equity in Indian domestic carriers may provide help for struggling airlines. However, the amassed debts of Kingfisher have led to some analysts questioning whether foreign carriers, themselves facing tough economic times, will be willing to invest.

As for Kingfisher, if it can survive long enough there is some hope; the carrier is scheduled to join the Oneworld alliance of 11 member and 20 affiliate airlines from February. "This should give it better access to global routes, potentially allowing it to become more competitive," says Rab.

Hope, of course, is always a reserve currency for airline bosses. As Mallya himself put it last year when dismissing speculation on the potential collapse of his carrier: "To write the epitaph of Kingfisher Airlines is neither fair nor accurate. We shall survive and flourish and prove you all wrong."

Additional reporting by Dominic Perry in Paris

Weekend buzz- news on Kingfisher just doesn’t go away!

2012-01-20T17:45:00.006+05:30

Neelam Mathews

Jan 20, 2012

While Aerospace Diary, in no way, wants to be associated with any kind of sensationalism, at the risk of putting our necks online, word has it a very very senior expat executive of Kingfisher is on his way to moving out to “fix” operational woes of the smallest budget carrier.

The buzz also says replacing him will be an old hand who was President-Marketing & Corporate Affairs Sahara India. Presently, he runs an integrated aviation company, with six divisions- Regular Flights, Charters, Airport Management Service, Holidays. Aero Sports Club. Consulting….wonder if this were to happen, if it could be related to a certain cash infusion ….?

Ramp staff in red skirts, are concerned they will soon have to switch to wearing red saris!

Weekend Read- Global Economics: When China Is Not Just China

2012-01-20T17:21:00.000+05:30

(By Derek Scissors, Ph.D.)

The Heritage Foundation

Posted by- Neelam Mathews

Jan 20, 2012

The People’s Republic of China’s (PRC’s) relationship with Iran receives a good deal of attention. As the U.S. considers how to stop Iran’s nuclear weapons program short of military action, the PRC is considered vital in ensuring economic sanctions are effective. But it has been difficult to win Chinese cooperation in applying sanctions. One mistake the U.S. may have made is treating China as a unified entity.

It is true, of course, that the PRC has a tightly controlled political system. There is one ruling party, a powerless legislature, and muzzled debate. Even so, distinct interests have emerged.

State-owned enterprises rarely operated internationally a decade ago and, if they did, unfailingly followed the central government line, as when China Unicom was nationalized in 1999. One outcome of state-led development since 2003 is powerful growth by state firms. By some measures, State Grid is the world’s biggest power company, China Mobile the biggest telecom, and ICBC the biggest bank.

The PRC’s global presence is also much greater. Chinese firms are the world’s biggest exporters. From 2005 to 2011, Chinese outward investment exceeded $300 billion, even excluding bonds.

China’s corporate kings are the two largest oil companies, both state-owned: CNPC and Sinopec. Both rank in Fortune’s top 10 globally. They are the two biggest owners of foreign non-bond assets, accounting for more than 25 percent of outward investment—more than $80 billion—by themselves. CNPC and Sinopec own stakes in Canadian oil projects; CNPC sends Venezuelan oil to the U.S. for refining; and Sinopec has just made a sizable U.S. shale deal. They also have made large acquisitions in Europe.

Iran has been an important target, with CNPC and Sinopec each having multibillion-dollar projects. However, there are indications that both, along with smaller cousin China National Offshore Oil, have slowed recent work. Why? It probably wasn’t orders from Beijing. Rather, proceeding with their considerable business in Iran in the face of sanctions would put much more of their global business at risk.

More important, the internal political role of these companies is underappreciated. When push comes to shove, they follow government orders. But they first do some nudging of their own. CNPC and Sinopec are the two biggest contributors of tax revenue. They directly employ more than 2 million people and are crucial to the jobs of many more. They are vital in Beijing’s strategy of securing ever-growing oil imports. Thus, their relationship with the central government is no longer one-way, and they cannot be happy with the prospect of the PRC bucking stronger international sanctions.

This is the proper context in which to understand the decision by the Obama Administration to punish Chinese company Zhuhai Zhenrong. It will accomplish nothing in itself, but it will catch the attention of CNPC and Sinopec, as Zhenrong is also a centrally controlled energy enterprise (if much smaller).

The U.S. cannot negotiate directly with CNPC and Sinopec. It certainly should not expect them to defy the Communist Party. But welcoming Sinopec investment here while sanctioning Zhenrong sends an indirect signal. Because China is not a single entity, such signals are likely to prove more effective than traditional policy has been.

Will wait for Pakistan to reassess ties says Marc Grossman

2012-01-20T17:12:00.000+05:30

U.S. Special Representative for Afghanistan and Pakistan-

Ambassador Marc Grossman

January 20, 2012

Transcript of media interview

First of all, thank you all very much for coming out this morning. May I also thank the Government of India for all of the hospitality that we have been shown during the day today.

I am on a trip that has taken me so far first to Turkey, then to Saudi Arabia, to the United Arab Emirates, and here today to India. I had the opportunity today to call on the Foreign Secretary and I appreciated that very much. I also look very much forward to seeing my counterpart S.K. Lambah here in a few minutes, and then I have the honor to be received this afternoon by the National Security Advisor.

We have made this trip in support of Afghan-led and Afghan-owned reconciliation and so after New Delhi this evening we are going to Kabul. I will have the opportunity to visit with the leadership of the Government of Afghanistan and particularly President Karzai tomorrow night. After our meeting with President Karzai, we will decide what to do next because we take his guidance and advice in an Afghan-owned and Afghan-led process.

As I say we were very much honored to be able to spend some time with the Foreign Secretary this morning. We reviewed the situation in Afghanistan and I appreciated his desire to continue this conversation between the United States and India on this important subject. And so, with that I will be glad to take a few questions.

Q: Ambassador Grossman, was Pakistan discussed with the Foreign Secretary, and also, will it be discussed with the National Security Advisor? How worried is the United States of America with the developments in Pakistan?

A: First of all, let me just say obviously that the Indian government can speak for itself about the question of Pakistan, but what I would say is that of course we follow issues of Pakistan carefully, the relationship between Pakistan and the United States is very important. Pakistan, the government of Pakistan, the Parliament of Pakistan have asked for some time to reassess and reevaluate the relationship with the United States. I respect that. They have asked for time, to give them space, to have that reevaluation and I respect that. What I say is that when Pakistan is ready to reengage in a dialogue with the United States, we’re glad to do so at any time and at any place.

Q: As a supplementary to this Ambassador, stability is very low in Pakistan at the moment, tension between the army and the civilian government. Do you feel there is a cause for some tension in the subcontinent?

A: We have, I think been quite clear from the podium in Washington about our views on this. We support the civilian government in Pakistan and democracy in Pakistan. But you know, this is a question for the Pakistanis, this is an internal question for them. They have their own ways of going forward and, so I wouldn’t comment any further on their internal developments. I will take one more.

Q: Were you disappointed that you were not allowed to go to Pakistan?

A: As I said to your colleague, the Pakistani government and the Pakistani Parliament has taken time to reevaluate its relationship with the United States. And I want to repeat, I respect that. They have asked for space to do that, I respect that. And so when they are ready to have a conversation, I’m ready at any time, at any place.

Q: One last question, Ambassador Grossman. The ramifications of these developments on Afghanistan – how worried are you and what are you looking at in terms of repercussions in Afghanistan?

A: Well, obviously, the issues of the relationship between Pakistan and Afghanistan are hugely important. We’d like to continue to be in close conversation with the Pakistanis on that issue as well. Obviously what happens between Afghanistan and Pakistan is extremely important. We encourage dialogue between Afghanistan and Pakistan. We’d like again to get into the meeting of the Core Group -- Afghanistan, Pakistan and the United States -- because I think a conversation about all these things is really necessary.

Keskar to Head New Boeing Commercial Airplanes in Asia-Pacific

2012-01-20T10:31:00.004+05:30

Posted by- Neelam Mathews

Jan 20, 2012

Dinesh Keskar, president, Boeing India, will now take on the new and expansive role of Senior Vice President, Sales Asia-Pacific and India for Boeing Commercial Airplanes. In this role, Keskar will head a sales organization, including contracts, marketing, revenue management and other support functions, says Boeing.

Keskar has been associated with the Indian market for many years and directly responsible for Boeing orders in India.

“This move is part of our forward-deployment strategy to ensure our sales teams are closer to our customers,” said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. “Keskar’s broad previous experience in the Commercial Airplanes Sales arena and his commitment to building deep relationships with customers will serve him well in this assignment.”

Keskar was appointed president of Boeing India in March 2009. Reporting to Shep Hill, President of Boeing International, Keskar currently represents all elements of The Boeing Company in India, where he has led Boeing-wide efforts focused on expanding the company's local presence and pursuing new growth and productivity initiatives.

“India is an important market and a priority for Boeing, and we will continue to grow and strengthen our partnership with customers we serve and the many communities in which we work and live. Dinesh will continue in his present role as Boeing India President until a successor is named,” said Shep Hill, president of Boeing International in a statement.

Boeing, the world’s leading aerospace-based company and the largest manufacturer of commercial jetliners and military aircraft combined, has significantly expanded its footprint in India in both the civil aviation and the defense markets. The Boeing India corporate office is located in Delhi, and the company has a Research and Technology center in Bengaluru to collaborate with India’s technical talent for research in aerostructures, materials and network systems. Boeing is also partnering with India’s leading manufacturers to build a supply chain.

AirAsia X rationalizes routes, grand strategy, says Frost

2012-01-19T11:32:00.000+05:30

Posted by- Neelam Mathews

Jan 19, 2012

The recent decision of AirAsia X to stop flying to Mumbai and London raised many eyebrows about the sustainability of long haul low cost services. Though the immediate concerns point towards high jet fuel prices, immigration concerns as well as high airport taxes have also impacted the overall grand strategy to increase yields, rationalization and allocation of aircraft fleet to more profitable routes, says consultancy Frost & Sullivan.

“These routes (Delhi and Mumbai and Paris and London) were bleeding on a low cost model and with the MAS-AirAsia collaboration, cutting off duplicate capacities makes sense,” says Amartya De, Frost & Sullivan Senior Consultant for Aerospace & Defense.

“Part of the network rationalisation process is also to bring passengers from European destinations on MAS up to Kuala Lumpur and then giving them a choice to scout South East Asia and move further to Australia either on Qantas or on a low cost model. Key to the rationalisation and optimisation is improving how the airlines interface at their Kuala Lumpur hub. MAS and
AirAsia might develop a transfer program, with the construction of KLIA 2,” he said.

With AirAsia’s Sydney route soon to be opened, there are significant advantages to Malaysia as a hub. Giving direct competition to Singapore, with a parallel low cost link connecting Melbourne, Perth, Darwin, Gold Coast and Sydney, AirAsia offers pan-Asian connections to fuel the routes
for South East Asia regional connections spanning as far as India.

Another parallel route which is likely to emerge and coexist is the British Airways-MAS partnership. “The opportunity is tremendous in order to maximise the network potential that a combination of AirAsia, AirAsia X, Malaysia Airlines and IAG could bring along with Qantas. The tie-up with MAS could become a component of Qantas’ new international strategy,” says De.

“This new development, along with the SIA-Virgin partnership, will intensify the Kuala Lumpur-Singapore rivalry. A similar pattern is emerging at Changi with Jetstar having started flights between Singapore and Beijing while SIA added another daily frequency only to be passed onto Scoot
later,” said De.

Scoot aims to help SIA re-capture the growth the group has lost over the past decade. Scoot is geared to enable SIA to capture the growth at the low end of the market but it will also allow the group to catch up in the premium economy segment. SIA-Sydney arrival and departure times are
expected to occur during off-peak hours for Scoot, which might be the same case for AirAsia X so that they do not overlap with MAS-Qantas flights timed to serve the premium market.

“The overall grand strategy sets up parallel routes from Europe and South Asia through Singapore and Kuala Lumpur reaching the far end of the world terminating in Australia and New Zealand each serving its own market and earmarked segment of passengers and each giving an opportunity to switch to a low cost network,” said Frost.

“As for the immediate issue at hand, AirAsia X will surely be able to sustain its long haul low cost services to Australia much better than what ensued on its London route.”

Budget Carrier AirAsia X Slashes India/Europe Service (Update)

2012-01-18T19:07:00.001+05:30

AIN Air Transport Perspective » January 16, 2012

by Neelam Mathews

Europe's ETS, higher UK passenger duty taxes and high airport and handling costs in India have convinced AirAsiaX to refocus on Asia. (Photo: AirAsia)

January 12, 2012, 10:24 AM

AirAsia X, long-haul subsidiary of Malaysia’s AirAsia, the largest Asian budget carrier, plans to withdraw 11 weekly services to Mumbai and Delhi in India and 10 weeklies to its only European destinations—Paris and London—from its Kuala Lumpur hub.

Services to Mumbai and Delhi will cease from January 31 and March 22, respectively, while flights to London and Paris will end on March 30 and March 31.

“The implementation of the Emissions Trading Scheme and escalating Air Passenger Duty taxes in the UK, which will rise yet again in April, have forced our decision to withdraw our services to Europe,” said Azran Osman-Rani, CEO of AirAsia X.

AirAsia X has faced excess capacity and low demand on the Delhi and Mumbai sector using an A330 with 377 seats and a Boeing 777, leading to drastically dipping revenues. Meanwhile, high airport and ground handling costs in India and visa restrictions for travel resulted in a structure not conducive to the low-cost model of AirAsia X, explained Azran.

However, Center for Asia Pacific Aviation (CAPA) South Asia CEO Kapil Kaul said AirAsia’s working partnership with Malaysian Airlines (MAS) involving a share swap last year might have resulted in realigning of the network. “The idea of the swap was that both entities do not cannibalize each other’s business. In this case, the beneficiary will be MAS,” explained Kaul. MAS already flies twice-daily service to Delhi.

Last year Malaysian Transport Minister Kong Cho had said both companies can cooperate on which routes to operate “to enhance operating costs.”

AirAsia X will now focus on its core markets of Australasia, China, Taiwan, Japan and Korea, where, said Azran, it has “built up stable, profitable routes within an infrastructure that supports low-cost services.
“We intend to open up new routes within these markets, as well as add frequencies on existing routes,” he added.

An official of an Indian budget carrier with limited international operations told AIN he is sorry to see AirAsia X pull out. “Hopefully, the government will recognize now how infrastructural issues such as heavy tax on aviation turbine fuel and already high airport fees to be increased by 280 percent in Delhi to be imposed from April are hurting the industry,” said the official.

In India, parent AirAsia and its Thai subsidiary, Thai Air Asia, will continue to operate 60 flights a week.

Exclusive! Kingfisher- Double Trouble

2012-01-18T18:26:00.006+05:30

Neelam Mathews

Jan 18, 2012

Aerospace Diary learns a Kingfisher flight leaving for Mumbai from Delhi at around 3pm had no valets nor loaders to handle luggage as they decided to demand dues owed to them by the carrier. Aerospace Diary has confirmed they are on strike.

Following the safety scare, which we feel was a bit misconstrued and badly handled last week, the Kingfisher aircraft on the runway returned “due to a technical fault,” that was reported to airport officials. However, passengers inflight had another story to tell. An announcement made by the captain that there was “a burning smell," the reason they were not taking off, panicked most who had read the safety story last week.

What a way to instill confidence in your customers! The good news is the flight was full.

EXCLUSIVE! Helicopter operators say DGCA impractical on some orders

2012-01-18T01:48:00.002+05:30

Neelam Mathews

Jan 17, 2012

The Director General of Civil Aviation (DGCA) has for the first time met with around 45 stakeholders associated with helicopter operations- pilots, OEMs and operators to discuss adherence to safety guidelines during the upcoming elections. Last week, the DGCA had issued an air safety circular on various issues related to operation of small aircraft and helicopters.

While the DGCAs attempt to engage the industry has been applauded, there is serious concern about the implementation of a pre-flight medical checkup for all flights during the elections. “We cannot carry a doctor with us on every flight. We fly to remote helipads around the country. This is not practically thought out at all,” says an operator. There are some 700-800 temporary helipads.

Ground Handling at airports for general aviation has been a stressful point for operators forced to pay around Rs 15,000 for every sortie. “While this is perhaps OK for business jets, for helicopters, it totally eats into our margins.” The practice was started one and a half years ago, when earlier Rs 2000 was charged by the Airports Authority of India’s. “Pilots are being harassed in tier two cities,” explains a pilot. Now DGCA has promised to return to the old practice. It is to be seen when the circular will go out.

During elections when speed is of the essence, the DGCA directive to inform the Election Commissioner of the passenger manifesto and flight plans 24 hours in advance is going to affect business says an operator.

There is however, praise among the pilot community wherein they can refuse to fly if safety is an issue. Bullying by politicians just won’t do any more!

Beijing is very likely exaggerating GDP growth, says Heritage Foundation

2012-01-18T00:19:00.000+05:30

Posted By Neelam Mathews

Jan 17, 2012

By- Derek Scissors, Ph.D. is Research Fellow in Asia Economic Policy in the Asian Studies Center at The Heritage Foundation.

(Edited)

China today announced that GDP growth for 2011 slowed to 9.2 percent. Over the next days and weeks, there will be a stream of pontificating about what this means. There’s a good chance that everyone involved will be pontificating about nonsense.

China’s economic statistics are usually inconsistent, occasionally wildly inconsistent, and do not seem to be improving in quality. For 2011 GDP in particular, Beijing is very likely exaggerating growth (some years it understates). Rather than focusing on reported figures, the U.S. should prepare for a weak Chinese economy but one that may begin to rebalance in 2012. It should also engage in long-overdue independent estimation of China’s performance.

Impeaching The Growth Result

There is a cottage industry that gains directly or indirectly from insisting that Chinese numbers are fairly accurate and far better than the bad old days of 15 years ago. But reasons for skepticism abound.

There are indirect indicators of much slower GDP. Monetary policy has long been extremely loose, featuring negative real interest rates. Yet the central government began loosening further several months ago, a strange reaction to growth still over 9 percent. China still boasts the world’s largest foreign trade surplus and net inward investment. Foreign exchange reserves fell in the fourth quarter, suggesting capital flight. That would translate to a sluggish world economy being more attractive than China’s own.

Premier Skeptics

Problems go well beyond 2011 GDP. It has been over a decade since former Premier Zhu Rongji wondered how all provinces could grow faster than the country as a whole. The problem persists and, in fact, was worse in 2011 than 2008. The trends in national and provincial growth clearly match, but provinces remain unwilling to report accurate numbers. Such unwillingness extends deeply into Chinese statistics.

Li Keqiang, himself set to become premier in 2012, once dismissed GDP figures as “man-made.” A serial revision process was intended to improve that data quality. There has never been a downward GDP revision, though, which indicates more unwillingness to report certain results. Further, only some data are revised, creating a mismatch between revised and unrevised elements. The revision process is indeed man-made and may have worsened data quality.

Some Chinese figures are so absurd they do not require a premier to doubt them. There is no pretense of a true unemployment rate, instead only “registered urban unemployed,” a number not allowed to exceed 5 percent. It is considered too dangerous to announce true urban joblessness, much less the far higher rural number.

It should be emphasized that many problems in Chinese data are due to foreign observers. The Ministry of Commerce identifies Hong Kong as the source of 60 percent of incoming foreign direct investment (FDI) in 2011, soaring from an already substantial 35 percent in 2007. Calling investment from Hong Kong “foreign” strains credulity, especially with so many mainland subsidiaries that are listed in Hong Kong and sending money back. Yet it is duly repeated that FDI is rising.

Not Rebalancing Yet

The flaws in Chinese data have serious consequences. The imbalance between consumption and investment has become a critical force in the world economy, but data issues cloud the extent and trend.

Challenges for the U.S.

China’s macroeconomic and data issues present varying challenges to the U.S. First, the U.S. should stop relying on numbers deemed absurd by the most senior officials of the government producing them. Second, it is possible that Chinese rebalancing may actually begin in 2012—if more by default than by some dramatic central government program.

The U.S. should therefore:

Create a project, led by the Department of Commerce, to compile American estimates of important Chinese economic indicators: GDP, unemployment, inflation, investment, consumption, and so on. This project is long overdue.
During Vice President Xi Jinping’s anticipated February visit and the spring Strategic and Economic Dialogue, encourage the Chinese government not to fight rebalancing.

The U.S. Can Help

One way the U.S. could facilitate Chinese rebalancing is by its own rebalancing -- cutting the budget deficit. Apparently this is too much to ask, so the U.S. can publicly tie progress in Chinese rebalancing to an American commitment to forgo trade sanctions for a given period. This would be especially helpful in the politically dangerous year ahead.

Boeing hosts Winter Supplier Management Council Meeting

2012-01-17T11:47:00.000+05:30

Neelam Mathews
Jan 17, 2012

Boeing Defense Space & Security (BDS) is hosting the Aerospace Industries Association’s (AIA)Winter Supplier Management Council Meeting, February 21-23rd, being held at the Renaissance St. Louis Airport Hotel in St. Louis, Missouri.

“As we all know, these are critical times for our industry. Now more than ever, AIA members must to preserve and protect the aerospace and defense industry and find opportunities for growth. We look forward to having you with us and the Supplier Management Council as we work together on our most challenging issues,” says AIA.

The Boeing Company and its senior leadership will be hosting the membership at its BDS facility, providing a tour of the F-15 and F-18 manufacturing lines. Boeing will also be scheduling one-on-one business meetings with AIA members and their Supplier Management Leaders from across BDS’ military aircraft & weapons, fixed and rotor wing transport, space, information systems and satellite business areas. Representatives will include individuals from the company’s Supplier Diversity and Small Business offices and Supplier Management professionals with special expertise in Avionics & mission systems; Electrical/hydraulic and mechanical systems; Major composite and metallic structures; Fabricated and machined components; Raw materials, fasteners and industry standards; and Information systems and technologies.

A panel discussion will be held with senior supply chain representatives from many of AIA’s member companies on the current challenges facing the aerospace and defense industry and its supply chain. There will also be a legislative panel on the latest developments on Capitol Hill and AIA’s campaign to preserve the industry.

Of interest is a panel discussion on counterfeit parts.

Airport operators note- smartphones popular in Beijing International Airport

2012-01-16T21:00:00.000+05:30

Posted by- Neelam Mathews

Jan 16, 2012

The numbers of passengers at Beijing International Airport carrying smartphones has more than doubled in the last year, according to a new SITA survey which shows that the smartphone is now fuelling the rapid adoption of passenger self-service at this important global hub.

The rising influence of the smartphone is a key finding from the 6^th annual SITA/ Air Transport World Passenger Self-Service Survey carried out with a representative sample of the 283.5 million passengers who pass through six of the world’s leading airport hubs including Abu Dhabi International Airport, Beijing International Airport; Frankfurt International Airport; Hartsfield-Jackson, Atlanta; Chhatrapati Shivaji International Airport, Mumbai; and São Paulo Guarulhos International Airport.

Beijing passengers wanted access to the following trip-related information from their smartphones: gate changes, flight delays and boarding status, 67%; time to reach departure gate, 32%; wait times at security, 28%; location of nearest lounge, 18%; and information on airport parking, 21%. At Beijing, 18% would be willing to pay for such services.

Overall, 34% of passengers already receive SMS notifications of flight information, and 51% of frequent flyers (ten or more trips per year) have signed up for this service. Notably 32% of those interviewed at Beijing were interested in shopping deals, well above the global average of 19%.

Use of self-service channels continues to grow with the following percentages of passengers interviewed at Beijing using self-service frequently or occasionally: kiosk check-in, 72%; online check-in, 56%; self-boarding, 34%; and mobile check-in, 22%.

David Fu, SITA Director for China, said: “It is clear from this survey that the smartphone is leading to an increasing level of sophistication in the Chinese traveller’s use of self-service functionality. We have seen a slight decline in the percentage of passengers with bags using counter check-in and there is a clear demand for self-service across a range of bag management options. Another interesting feature of this survey is the increasing popularity of airline websites for non-air offers.”

The survey found a significant interest in new self-service options with self-boarding the most popular, 63%; self-service bag drop, 55%; tracking of bag location from a mobile device, 52%; tagging own bag, 56%; reporting a missing bag from a kiosk, 49%; and transfer kiosks, 49%.

The survey found that 51% of those who booked online used the airline website. This provides a clear opportunity for airlines to be competitive on non-air offers. Currently, passengers use airline websites to: modify a reservation, 50%; purchase preferred seating, 31%; book a hotel room, 25%; hire a car, 9%; book a vacation, 10%; buy products and gifts, 9%; and purchase additional transport, 13%.

airberlin inaugural to Abu Dhabi

2012-01-16T10:26:00.000+05:30

Posted by- Neelam Mathews

Jan 16, 2012

airberlin has opened its new four times a week route between Berlin and Abu Dhabi with its Airbus A330-200.

The new connection also marks the start of the codeshare agreement with Etihad, initially covering selected flights in the network of both airlines.

This strategic partnership with Etihad Airways not only opens up unique opportunities for the future for airberlin, it also brings a number of benefits for our passengers in terms of access to new routes, including our new all-year-round direct connection to Abu Dhabi. This flight is integrated into Etihad’s hub system in Abu Dhabi, so we are in a position to offer excellent connections, for example to Asia and Australia. Passengers coming from Abu Dhabi will have access to the numerous connecting flights operated by airberlin, both to destinations in Germany and also to Austria, Scandinavia and Switzerland. This makes the flight attractive for business travellers and holidaymakers alike,” said Hartmut Mehdorn, CEO airberlin.

Etihad Airways President and CEO, James Hogan said: “This flight marks a key milestone in our new partnership with airberlin. We are delighted, through this partnership, to link the capital cities of Germany – a hugely important market for Etihad Airways – and the United Arab Emirates. We are looking forward to strengthening our ties with airberlin as we work closely over the coming months to explore opportunities to bring the benefits of our partnership to our customers.”

“By entering into partnership with Etihad Airways and joining the global airline alliance oneworld, airberlin is gradually further expanding its network. The inauguration of Berlin Brandenburg Airport in just five months’ time will offer the airlines unique opportunities for growth: As the only European airport, BER is capable of nearly doubling its air traffic capacities,” said. Manfred A. Körtgen, COO Berlin Airports.

SIA A-380 to New York via Frankfurt

2012-01-16T10:01:00.000+05:30

Posted by- Neelam Mathews

Jan 16, 2012

The Singapore Airlines Airbus A380 is now flying to Frankfurt and New York,with the inaugural Singapore - Frankfurt - New York service having departed Singapore shortly after midnight today. It will then depart the German city at 0820hrs and arrive at New York’s JFK airport at 1110hrs, all times local.

The daily A380 flights will replace an existing daily Boeing 747-400 service to JFK Airport via Frankfurt, representing a daily increase of 25% in seat capacity, says SIA.

Frankfurt and New York will be Singapore Airlines’ ninth and tenth destinations to receive the superjumbo. Frankfurt is Singapore Airlines’ fourth point in Europe to be added to the list, after London, Paris and Zurich, while New York is the second point in North America, after Los Angeles.

The Singapore Airlines A380 has proven exceptionally popular with customers, with strong loads on all routes it serves. The world’s first carrier to operate the A380 in October 2007, Singapore Airlines has since carried more than 6 million customers on the superjumbo system-wide. The Airline currently has 15 A380s in service and four more on firm order.

India Corporate Jets Face Tax Evasion Probe

2012-01-14T12:09:00.000+05:30

by Neelam Mathews

January 10, 2012, 3:35 PM

India’s Directorate of Revenue Intelligence is scrutinizing eight Indian companies that it believes are basing their foreign-registered corporate aircraft overseas to evade customs duty and taxes. The agency is said to be looking at the status of a Boeing 727 owned by the UB Group, Punj Lloyd’s Gulfstream, Essar’s Boeing 737 and Bharat Hotel’s Embraer Legacy 600. Several other Indian companies’ business jets are also understood to be on the agency’s radar.

India does not levy a customs duty on foreign-registered aircraft if they fly out within 15 days of arrival into the country. Many Indian companies with subsidiaries in foreign countries having the same chairmen choose to keep the U.S. registration as India has complex bureaucratic processes. For example, India’s Directorate General of Civil Aviation (DGCA) does not allow cross-utilization of pilots from one aircraft to another and should a pilot fall sick, it is easier to replace him or her if the aircraft is registered overseas. Clearances for getting heavy maintenance and for pilot training from DGCA can also prove to be impediments. In addition, there is a general belief among private and corporate owners in India that foreign-owned aircraft retain a higher resale value.

Embraer Chairman of the Board resigns

2012-01-14T10:41:00.001+05:30

Neelam Mathews

Jan 14, 2012

Maurício Novis Botelho has resigned as Chairman of the Board, Embraer, with immediate effect.

As President & CEO of Embraer, from 1995 to 2007, Maurício Botelho led the restructuring, growth and internationalization process of the Company, after its privatization. He held the position of Chairman since 2006.

According to the terms of the Company’s Articles of Association, Hermann Wever, current Vice Chairman of the Board, will take over the chairmanship until the date of an extraordinary general assembly to be called, in the near future, to elect a new Chairman.

New President, Bombardier Commercial Aircraft

2012-01-13T21:51:00.000+05:30

Posted by- Neelam Mathews
Jan 13, 2012

Bombardier Aerospace has announced the appointment of Michele (Mike) Arcamone as President, Bombardier Commercial Aircraft effective February 1, 2012.. Arcamone succeeds Gary R. Scott, who retired on October 1, 2011.

“We are extremely pleased to welcome Mike Arcamone to Bombardier Aerospace,” said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. He brings a unique background of international experience to our team. His hands-on leadership approach and wealth of experience in operations and program management will benefit our Commercial Aircraft business unit, especially as we drive towards bringing the CSeries aircraft to market.”

A native of Montréal, Québec, Arcamone most recently held the position of President and Chief Executive Officer, GM Korea, based in Seoul, where he was accountable for a multi-billion dollar organization with export sales to 150 customers.

“We are at a pivotal moment, both in ensuring the continued success of the Q400 NextGen and CRJ NextGen aircraft and in moving towards the testing and production of the CSeries aircraft. I look forward to putting my knowledge and experience to work and delivering on our commitments to our stakeholders,”said Mike Arcamone.

Breaking! Jet Airways orders largest number of 737s this year

2012-01-12T23:49:00.002+05:30

Neelam Mathews
Jan 12, 2012

In its order update, Boeing has said it took orders for 28 new commercial airplanes in the week ended Jan 12. The largest order was for 17 737s from Jet Airways, one order for a 737 from Virgin Australia Holdings and 10 orders for 787s from an unidentified customer.

Two 777s had been cancelled, bringing the net total orders for 2012 to 26. The company did not say who cancelled the 777 orders.

IndiGo and Scoot to launch RFPs to Airports

2012-01-12T22:45:00.000+05:30

Neelam Mathews

Jan 12, 2012

India’s budget carrier IndiGo and Scoot, the new medium and long-haul, low-cost division of Singapore Airlines (SIA) will launch Request for Proposals (RFPs) from airports via Route Exchange, the online trading zone for airline capacity. Airlines can actively campaign their target airports through this unique platform.

After the first successful RFP by Air Asia X last year, Routes says the two new RFP’s for 2012, will be launched on Jan 16.

Paul Winfield, Airline Director for Routes said: “The RFPs will allow them to source data and information in line with their chosen criteria and target markets. Route Exchange simply facilitates the process of gathering this data and allows them to deal directly with airports online in a cost and time efficient manner. Both airlines are pro-active in their approach to route development ….”

IndiGo has an extensive domestic operation and a growing international footprint. The airline is using Route Exchange to help gather information and data to develop an international network that not only complements the existing international connectivity to/from India, but also enhances / improves connectivity from India to destinations otherwise unconnected, either non-stop or via one of the existing international points served by IndiGo. It has A320 aircraft and its main markets of interest are Asia, Middle East, China and CIS, explains a statement.

IndiGo will be looking at deploying 4-5 aircraft on international routes in each IATA schedule period, subject to allocation of route rights from the Indian Government, it adds.

Scoot, which was formally launched in Nov. 2011, is using Route Exchange to issue a formal RFP for potential routes in China, Asia and Europe. Scoot will have 2 more B777-200 joining its fleet from Q1 2013. The target markets for Scoot will be North Asia, Indian sub-Continent, Middle East and Europe. In this RFP, Scoot is sourcing for airports, within its target markets to serve from April 2013.

“We at Scoot view Route Exchange as the perfect platform to deliver the significant opportunity that this RFP will provide to airports offering a transparent process to everybody,” said Campbell Wilson, Chief Executive Officer, Scoot.

MMRCA Bids

2012-01-12T22:25:00.000+05:30

Neelam Mathews
Jan 12, 2012

I'm not getting hyper, but believe the two shortlisted bidders for the MMRCA are called to the MoD on Friday the 13th.

May it prove lucky for all ! Aerospace Diary learns in any case, there will be a lot of criss-cross business between the two OEMs and their suppliers.

Breaking! AirAsia X pulls out of India

2012-01-12T14:54:00.001+05:30

Neelam Mathews

Jan 12, 2012

AirAsia X, the long haul affiliate of AirAsia, has today announced a realignment of its network with a focus on its core markets. The move will see AirAsia X withdrawing services to India (Mumbai and Delhi) and Europe (Paris, London) from its Kuala Lumpur hub.

Four weekly services to Mumbai will be suspended with the last flight on 31 January, 2012. New Delhi- Daily services will be suspended with the last flight on 22 March, 2012. Flights in March will be reduced to four weekly services.

“The continued visa restrictions for travel between India and Malaysia, and the increase in airport and handling charges have resulted in a structure not conducive to the low cost model….The airline is hopeful in reinstating services to India once these structural issues can be resolved,” said Azran Osman-Rani, CEO of AirAsia X.

Six weekly services to London will be suspended with the last flight on 31 March, 2012

Four weekly services to Paris will be suspended with the last flight on 30 March, 2012.

AirAsia X says it will offer guests who hold bookings after these dates an alternative travel option at no additional cost to mitigate the inconvenience caused as a result of these route withdrawals.

All affected guests will receive an e-mail stating options that are available to them, including a full refund, a reroute to another AirAsia X destination (e.g, in Australia and North Asia), or a move to an alternative carrier where available.

These changes will improve operating cost efficiencies and consolidate its network to focus on markets where it can build a leadership position in 2012.

“We intend to concentrate capacity in our core markets of Australasia, China, Taiwan, Japan, and Korea where we have built up stable, profitable routes within an infrastructure that supports low cost services. We intend to open up new routes within these markets, as well as add frequencies on existing routes. Announcements of our future expansion plans will be made soon,” Azran said.

“The continued high jet fuel prices and the weakening demand for air travel from Europe, brought about by the current economic situation together with exorbitant government taxes, have placed cost pressures on operating long-haul low cost flights between Asia and Europe, compromising our ability to offer the low fares AirAsia X is known for,” he added.

He adds: “The implementation of the Emissions Trading Scheme and the escalating Air Passenger Duty taxes in UK, which will rise yet again in April 2012 has forced our decision to withdraw our services to Europe.”

ETS already hurting- Expect to pay higher fares

2012-01-12T11:41:00.002+05:30

Neelam Mathews
Jan 12, 2012

Major U.S. carriers are adding surcharges to flights following the EU-ETS.

Around $3 surcharge each way on fares purchased between the US and Europe is being added.
While the ETS has been opposed by India, US and China, EU has been clear it will not pull out.

According to a report, industry watchers have said airfares between the U.S. and Europe could rise by $90 as carriers look to pass along the expense to passengers.

AS365 N3 Dauphin helicopter certified to Level D

2012-01-12T11:31:00.001+05:30

Posted by- Neelam Mathews

Jan 12, 2012

The Helicopter Academy to Train by Simulation of Flying (HATSOFF), joint venture owned equally by Hindustan Aeronautics Limited (HAL) and CAE, today announced its simulator cockpit for the Eurocopter AS365 N3 Dauphin helicopter has been certified to Level D, the highest qualification for flight simulators by India’s Directorate General Civil Aviation (DGCA) as well as the European Aviation Safety Agency (EASA).

HATSOFF three simulator cockpits – a Bell 412, a HAL civil/conventional Dhruv, and the Eurocopter AS365 N3 Dauphin – have been certified as Level 2 (JAR)/Level 6 (FAA) flight training devices (FTDs) when used as fixed-base, non-motion simulators in the docking station installed at HATSOFF.

HATSOFF uses a CAE-built full-mission simulator “mothership” that features CAE's revolutionary roll-on/roll-off cockpit design, which enables cockpits representing various helicopter types to be used in the full-mission simulator. When one cockpit is in the full-motion, full-mission simulator, another cockpit can be connected to the fixed-based docking station and used as a flight training device.

“HATSOFF is a first-of-its-kind helicopter simulation training center in India, and we are excited about continuing to demonstrate how simulation-based training will prove to be one of the best approaches for improving safety, operational efficiency and mission readiness,” Wg Cdr (Retd) Chandra Datt Upadhyay Vr.C., CEO of HATSOFF, says.

The cockpit for the Eurocopter AS365 N3 Dauphin, which can be utilized for training pilots flying the Dauphin N1/N2/N3 variants, is the third for the HATSOFF training center. The first cockpit delivered to HATSOFF represented the Bell 412 helicopter and training for Bell 412 operators began in July 2010. The second cockpit represented the civil/conventional variant of the Dhruv and training began in May 2011. An additional cockpit for the Indian Army/Air Force glass cockpit variant of the HAL-built Dhruv is expected to be added to the HATSOFF training center later in 2012.

Scoot Goes to Town with Scootitude, the new attitude!

2012-01-11T18:42:00.002+05:30

Neelam Mathews

Jan 11, 2012

Singapore Airlines low cost arm, Scoot is making a statement with its new uniform revealed today. Singapore’s buzzing with three of its cabin crew scooting around iconic sights in Singapore, showing off Scoot’s radical, modern new threads.

With strong overtones of yellow, Scoot’s corporate color, the uniform aims to break convention,catch your eye and allow our crew to perform their duties in comfort and style, says SIA.

“Practicality is our goal – a unique uniform our crew would be proud to wear. More importantly, safe for operations and easy to maintain,” said Ng Ju Li, Scoot’s Head of Cabin Services.

Scoot’s brief to designers, ESTA, was to develop a uniform that reflected Scoot’s personality – fun, casual with great service as top priority. “Our uniform is designed with “movability” in mind, to free our cabin crew from restrictions to allow us to focus on our guests.We’re casual. We’re Scoot.”

Scoot will provide medium and long haul no-frills flights from mid-2012, and tickets will go on sale in the first quarter of 2012, operating an initial fleet of four Boeing 777 aircraft, Scoot will ply first year routes that will link Australia, Singapore and China, with others to be announced.

U.S – India sector…..American to pull out

2012-01-11T15:51:00.000+05:30

Neelam Mathews

Jan 12, 2012

American Airlines is dropping its New Delhi – Chicago route. The service to New Delhi will end March1.

American's route was launched in Nov-2005 after the U.S and India signed an Open Skies Agreement.

AA says it's dropping the New Delhi route based on "the historical financial performance of the route and its future outlook given the global economic climate and high oil prices … ..”

Some estimates are claiming that American Airlines is losing close to $40 million on the New Delhi route- numbers that at an initial look, seem to be astronomically high.

American said the cancellation is not specifically related to its Chapter 11 bankruptcy restructuring but to "normal business changes."

American deployed 1771 weekly one-way seats on Delhi-Chicago O'Hare while Air India, soon to be the sole operator on the route, offers 2394 weekly seats.

Air India is also reporting considerable losses on the route (although all of its international routes are loss-making), with a loss of INR3.28 billion (USD62.9 million) on India-Chicago operations in 2009/10, according to the Comptroller and Auditor-General's report, which noted that “the India/US route was the single biggest factor adversely affecting Air India’s operations”, accounting for 41% of total losses. This is despite Air India having a lower cost of labor, although productivity and other inefficiencies affect its cost base, says CAPA.

American's withdrawal underscores the considerable yield pressures facing direct US-India operators from carriers with hubs in Europe and the Middle East. Network carriers from the Middle East are growing in the US, but still have a low access penetration rate compared to Europe. Between the US and Middle East hubs, Emirates operates 16,750 weekly one-way seats, with Qatar operating 6503 an Etihad, 4540.

Transferring through a Middle East hub does add noticeable travel time as Air India's direct Delhi-New York JFK has a flight time of 15 hours 40 minutes whereas flying Emirates through Dubai has cumulative flying time of 17 hours 20 minutes plus transfer time. An advantage, however, is the fact that Emirates serves 10 points in India whereas American only serves one. (American has onward connectivity in India with Jet Airways, but that too adds to travel time.), adds the CAPA report.

Another factor negatively impacting the profitability and viability of the route has been the close to 20% depreciation of the rupee against the US dollar in the last quarter of 2012, resulting in weaker inbound tourism levels from India to the US, adds the report..

Buzz- How close is India to deciding the MMRCA?

2012-01-10T13:24:00.000+05:30

Neelam Mathews

Jan 10, 2012

While Aerospace Diary refuses to speculate and give in to rumors, there is a loud buzz that the MoD might announce the decision on the winner of the MMRCA on Jan 12.

There is also loud talk that the consortium of European OEMs might be edging closer to winning.

I’m just sharing the buzz!

Indian Air Safety Audit Could Draw Unwelcome Outside Scrutiny

2012-01-10T10:54:00.000+05:30

AIN Air Transport Perspective » January 9, 2012

by Neelam Mathews

Authorities have identified Kingfisher Airlines as one of several Indian carriers whose financial problems have raised safety concerns.

January 9, 2012, 6:25 PM

A controversy is raging over the safety practices of India’s airlines following the partial “leak” of a financial audit from the Directorate General of Civil Aviation (DGCA). The report indicated that poor safety practices may be endemic in the Indian air transport sector.

“A reasonable case exists for withdrawal of Kingfisher Airlines’ Air Operators Permit as its financial stress is likely to impinge on safety,” said the DGCA audit in one of its conclusions. It went on to suggest that all other Indian domestic carriers need to improve safety standards. However, Indian airlines have refuted claims that their well-documented financial problems have led to corners being cut in flight crew and maintenance arrangements.

“Airlines understand the consequences to their existence if they have an accident,” civil aviation commentator Jitender Bhargava told AIN. “Also, let us not forget that Air India’s own engineering facility has [U.S.] FAA clearance.”

Cash-strapped Kingfisher Airlines, owned by high-profile liquor tycoon Vijay Mallya, has found itself under particularly close scrutiny, with 19 of its 64 airliners currently grounded. It is struggling to pay off some $1.23 billion in debts and, along with many other Indian carriers, has seen profits decimated by rising costs, including heavy fuel taxes and high operating costs. Kingfisher’s domestic market share fell to fifth place in November, from third place the previous month.

Some observers have argued that by releasing the DGCA report without reaching a final conclusion (airlines have not yet submitted their answers to queries by the agency), Indian authorities might have given foreign aviation authorities cause to scrutinize India’s air safety record. In the past, the European Union has “blacklisted” Asian carriers from Indonesia, the Philippines and Kazakhstan.

One analyst, speaking on condition of anonymity, told AIN that the situation could tarnish India’s image in the international market, which has until now shown an interest in investing in the growing aviation industry. Following the Air India Express crash in 2010, the International Air Transport Association had recommended a requirement that all Indian carriers undergo its Operational Safety Audit (IOSA).

However, in a statement released in July 2010, the FAA confirmed that India not only met with the agency’s International Aviation Safety Assessments (IASA) Cat 1 status, but also that it could serve as a model in the civil aviation sector for other nations in the Asia region.

New Director General Military Operations

2012-01-09T23:32:00.002+05:30

Lieutenant General A K Choudhary has taken charge of Director General Military Operations.

Choudhary is an alumnus from NDA and IMA and was commissioned on 22 Dec 1974. With a distinguished career, in both Command and staff assignments, he was commissioned into the MAHAR Regiment . Gen Choudhary has held various command, Staff and Instructional appointments with a vast operational experience.

He has the distinction of Commanding 12 MAHAR in J&K, 8 Assam Rifles in Manipur, 10 Sector Rashtriya Rifles in J&K and IGAR (South) in Manipur and GOC of Corps in Western Theatre. Besides his Grade 3, Grade 2 and Grade 1 Staff at Formation level, he was Colonel GS of 20 Mountain Division, BGS 16 Corps, DDG MO (A) and ADGMI (A) at Army HQ prior to taking over the reins of the Rising Star Corps.

He has also been an instructor at the Senior Command Wing at Army War College, Mhow.