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Showing posts from January, 2010

Air India Considers Switch From Frankfurt

Saturday, January 30, 2010 Air Transport Aviation Week & Space Technology Feb 01 , 2010 , p. 52 Neelam Mathews New Delhi Air India has second thoughts barely a year after establishing its European hub in Frankfurt Printed headline: Hub Hesitancy High airline user rates at Germany’s big Frankfurt airport have sent Air India scrambling for a less expensive European and North American hub, but airport and airline executives warn the long-term costs of any such move are likely to outweigh any short-term benefits, especially after it joins the Star Alliance airline network. Air India headed for the heart of Europe when it made Frankfurt a hub, but now it views lower-priced Dublin as offering a potentially better deal, even if it is on the periphery of the continent . Credit: FRAPORT Air India (AI) is currently completing the membership requirements to join Star in December. The Indian carrier established residency at Frankfurt (Fraport) barely nine months ago but is having second though...

Singapore Aviation Authority Launches Development Initiatives

News Aviation Daily Feb 01 , 2010 , p. 19 Neelam Mathews Following a major restructuring of Civil Aviation Authority of Singapore last year, CAAS on Friday unveiled plans to drive the development and growth of the aviation industry in Singapore. CAAS introduced an Aviation Development Fund (ADF) with a budget of $100 million to fund incentive aviation-related programs in the next five years. The ADF programs will also support broader industry-level initiatives to raise effectiveness and competitiveness through government-industry partnerships. Two ADF programs of $25 million each – the Aviation Partnership Program and the Aviation Innovation Program – will be launched in April to assist companies in developing new capabilities and encourage innovation. Others that could be rolled out subsequently would support worker development. CAAS is also entering two Memorandums of Understanding (MOU) with the Association of Aerospace Industries (Singapore) and the Singapore Institute of Aerospace...

As Legacy Carriers Reduce Fleets, Budget Carriers Await Deliveries

News Aviation Daily Jan 29 , 2010 , p. 10 Neelam Mathews As Japan Airlines is reducing its fleet by 53 aircraft, Singapore’s budget carrier Tiger Airways is adding 51, albeit not quickly. This was the general trend noted at the Low Cost Airlines World conference in Singapore. That low-cost carriers are working at cutting expenses is obvious in the pressure they are putting on legacy carriers. For example, Peter Harbison, executive chairman of the Center for Asia Pacific Aviation (CAPA), said Lufthansa is offering a business-class fare from the U.S. West Coast to Europe for a mere $859. The budget sector also triggered an ancillary revenue revolution, with airlines worldwide expected to generate $58 billion in non-fare income this year, said CAPA, about 12% of total revenues. The percentage suggests that “we are just at the start of the movement to monetize services and products passengers used to receive as part of the ticket price,” said Harbison. Baggage fees are one of the fast-grow...

Lightweight Howitzers Through U.S. Foreign Military Sales

Lightweight Howitzers Through U.S. Foreign Military Sales NEW DELHI — The Indian government has requested to purchase 145 M777 155mm Lightweight Towed Howitzers through the U.S. Foreign Military Sales program. The request includes warranty, spare parts, support and test equipment, documentation, maintenance, personnel training and training equipment, technical assistance from U.S. government and contractor representatives, and logistics support services. The estimated cost is $647 million. BAE Systems, whose U.S. Land Systems division manufactures the M777, said it welcomes the news of the U.S. Congressional notification of a potential FMS purchase of the M777 ultra light weight howitzer by the Government of India. “The M777 is, by some considerable margin, the lightest 155mm howitzer in the world, and the only system proven in battle,” the company said. Significant work share would be completed in India by the Mahindra and BAE Systems joint venture company. The intention is that the j...

Asia’s Airports Vie For Service From Burgeoning Budget Carriers

News Asia’s Airports Vie For Service From Burgeoning Budget Carriers Aviation Daily Jan 28 , 2010 , p. 09 Neelam Mathews Asia’s regional airports are exploring new ways to attract budget carriers that are on the road to expansion as legacy carriers continue to limp back to normalcy. While each airport has a different approach, Viva Macau Acting CEO Reginald Macdonald said at the Regional Airports World Conference in Singapore this week that “landing charges are the key. It is flexibility of the airport team and a mindset to route development that is important.” Given that budget carriers are volatile, the Civil Aviation Authority in Macau signed 10-year agreements with budget carriers in 2004, but is no longer signing any long-term agreements. Macau has five budget carriers flying to it and has plans to announce another one soon. “Our incentives are good,” said Antonio Rato, director of marketing at Macau International Airport. Macdonald praised Melbourne Airport for its flexibility an...

AirAsia Makes Beeline To India

Aviation Week & Space Technology Jan 25, 2010 By Neelam Mathews mathews.neelam@gmail.com NEW DELHI Malaysian budget carrier AirAsia is stepping up its momentum in India with definite plans to add eight more routes in the next seven months. The carrier started flights to India late in 2008, and flies at present to four destinations in India. Starting Jan. 27, its flights will be loaded for sale on its Web site. This new service is a coup for the carrier, given that most airlines are reducing fleet capacity to deal with debts and waning customer demand. Effective April 28, AirAsia will start its daily A320 Chennai-Penang flight, an old Malaysian Airlines sector. Penang is home to ethnic traffic, and AirAsia will offer fares as low as $43 from Trivandrum in South India to Kuala Lumpur. The first week of May will see the launch of the Mumbai-Kuala Lumpur A330 service four times a week followed by Chennai-Kuala Lumpur on May 18, Bengaluru (formerly Bangalore)-Kuala Lumpur daily A320 fli...

India to get new Army Chief

As India’s present Chief of Army Staff General Deepak Kapoor, retires from service on March 31, 2010, Lt Gen VK Singh, presently GOC-in-C, Eastern Command will take over as the next Chief of the Army Staff in the rank of General starting the same day. Singh was commissioned into the Rajput Regiment in 1970. During his long career, he has serviced in a variety of Command, Staff and Instructional appointments. Besides being an ‘Honours Graduate’ of the US Army Infantry School, Georgia, U.S, Singh studied at the Defense Services Staff College, the Army War College and the U.S Army War College, Carlisle.

Air India Reviews Decision To Shift Frankfurt Hub

News Aviation Daily Jan 22 , 2010 , p. 14 Neelam Mathews Barely nine months after announcing Frankfurt as a hub for flights to the west, national carrier Air India (AI) is reviewing its decision on the premise that Frankfurt Airport has become one of the costliest hubs in Europe. While not denying the review, Air India Chairman Arvind Jadhav told The DAILY, “All our decisions need to consider cost effectiveness.” An agreement was signed last December between airport operator Fraport and airline representatives that stipulates charges will increase progressively to 12.5% over the next two years. AI is now looking at various other airports in Europe. One option being discussed is Zagreb. Another likely contender is Dublin Airport, where passengers can pre-clear immigration for the U.S., which is seen as an advantage for transatlantic passengers, an airline official said. This facility may cost more for Air India’s passengers who are price-sensitive, said a former CEO of a Star Alliance a...

India Vacillates On Military Pacts With U.S

Aerospace Daily & Defense Report January 21, 2009 NEW DELHI — India’s unwillingness to sign the long-gestating Logistics Support Agreement and the Communications, Interoperability and Security Memorandum of Agreement (CISMOA)with the U.S. has prompted U.S. Defense Secretary Robert Gates to remark: “On the U.S. side, we have not done a good job spelling out [the] benefits of signing these agreements.” The agreements “have been lying for quite some time now,” Gates said Jan. 20. “They were put on the table in 2002. It is not a new requirement but has been known for some time. CISMOA will allow [our] defense relationship to expand significantly by increasing interoperability and security of communication equipment. “I see these [pacts] as enablers to allow defense trade ... as it will lead to great interoperability for our forces to work together, whether in relief or security operations,” Gates said. Gates was on a two-day visit to India devoted to furthering the U.S.-India defense r...

Air India Goes Ahead With Delivery Plans

News Aviation Daily Jan 20 , 2010 , p. 03 Neelam Mathews Air India will receive the first of 27 Boeing 787s on order in the first quarter of 2011 (April). The first 787 will be delivered to ANA in the last quarter this year, confirmed Dinesh Keskar, Boeing India President. Air India (AI) will receive about 15 787s by the end of 2012, according to an airline official who did not want to be identified. This figure was not confirmed by Boeing. The Indian carrier plans to replace its eight leased A310-300s with the 787s, said an Air India spokesman. Even as the carrier goes through major losses, Air India seems to be increasing its inventory of new aircraft steadily. According to Chairman Arvind Jadhav, the airline took deliveries of 29 aircraft in 2009 that enhanced fleet utilization and helped phase out 11 old aircraft. By March 2010, three 777-200s, two Airbus A310s and eight A320s will be returned or retired from the fleet, said Jadhav. Earlier efforts to lease out its 777s proved frui...

ST Kinetics Looks At India For Long-term Business

Aerospace Daily & Defense Report January 20, 2009 NEW DELHI – ST Kinetics, the Land Systems arm of Singapore Technologies Engineering, is participating in numerous programs in India and says it is looking at itself as a capability-based company able to integrate all dimensions of lifecycle support. Rated by Moodys as AAA, it has bid for six Indian defense contracts, including a Request for Proposals (RFP) for 34,377 Compact Personal Weapons. Other tenders include 400 155mm towed howitzers, the trials for which are to be held at the end of February in Kargil, a district of Ladakh in Kashmir that lies near the Line of Control facing Pakistan-administered Kashmir and was the center of conflict in May 1999. The war was fought in high altitudes in mountainous terrain, posing severe logistical problems for both India and Pakistan. The Spider Light Strike Vehicle under technical evaluation is ready for shipment, says Patrick Choy, chief marketing officer for ST Kinetics. Its collapsible r...

ICAO Needs To Review Security Rules, Expert Says

News Aviation Daily Jan 15 , 2010 , p. 16 Neelam Mathews A recent incident in which a man hid in a toilet on an A330 Air India flight from Medina, Saudi Arabia, to Jaipur, in the desert state of Rajasthan, is raising questions about the need for the International Civil Aviation Organization (ICAO) to review its security rules. In an unusual outcome for most countries concerning the Dec. 25 Air India flight, the stowaway has been released from jail without charges due to a cultural understanding that he was fearing for his life. “I do not feel ICAO has rules on how to treat stowaways. While the current rules say the captain has the right to decide, he may not have the tools to know the intent of the stowaway,” said Rafi Sela, president of Israel- and U.S-based AR Challenges. Sela, as the former founder and first president of the ILHSIA Israeli Homeland Security Industries Association and former co-chairman of the Airport Security Task force at HSIA Homeland Security Industries Associati...

Cancellation Of Indian Midair Refuelers Concerns Industry

Aerospace Daily & Defense Report (PDF) - Jan 12, 2010 NEW DELHI — India’s cancellation of the contract for six A330 inflight refuelers on Dec. 30 is worrying international companies, which complain that transparency is decidedly lacking in Indian defense procurement. Russia’s Ilyushin IL-78 was disqualified as having an incomplete bid, and price negotiations started with EADS last year. The finance ministry — after price negotiations were being finalized — objected to the higher price quoted by EADS, and the Russian bid was accepted. The Russians did not change their bid, instead including five extra engines and depot-level servicing under the original price. India’s Defense Procurement Procedure permits the second lowest price (L2) to be considered if the lowest price (L1) is rejected. Interestingly, in January 2009 the Russian bid was 1.05 billion euros (without the extra five engines and maintenance). This price had inflated 384 percent since 2004, when India purchased six IL-78...

Gulf Carriers Pursue India’s Market

Air Transport Aviation Week & Space Technology Jan 11 , 2010 , p. 37 Neelam Mathews New Delhi Gulf carriers woo Indian passengers as a strategic market linked to the West Printed headline: Targeted Entry With lower fares, newer aircraft, inexpensive hotel packages and what some regard as better service, Middle East carriers are gobbling up market share in India at the expense of local and European competitors. The Middle East carriers are using their hubs in Dubai and Abu Dhabi in the United Arab Emirates, and Doha in Qatar as waypoints to seat Indian passengers bound for Western Europe and the U.S. An introduction by Emirates of Airbus A380s on its Dubai-Paris route would increase pressure on Air India. Credit: EMIRATES Without the Middle East push, Indian passengers would more likely have booked on Air India, Jet Airways or Kingfisher from their own country, or on one of the big European carriers with a major presence in India, such as Lufthansa. International traffic into India ...

Asia/Pacific Carrier Group Taps China And Budget Carriers

News Asia/Pacific Carrier Group Taps China And Budget Carriers Aviation Daily Jan 11 , 2010 , p. 13 Neelam Mathews With Qantas canceling its 40-year membership in the Association of Asia Pacific Airlines (AAPA), the organization is now looking to add Chinese carriers and budget airlines in the region. While AAPA confirmed the above, it did not comment on The DAILY’s query on which carriers had been approached. Sydney-based think tank Center for Asia Pacific Association (CAPA) said on its Web site that Qantas now plans to develop relationships with other carriers directly, rather than through AAPA, adding that its interests now extend beyond those of the association. “China certainly meets the criteria, and we feel there is a strong role on the international stage for a regional association,” Andrew Herdman, director general, told The DAILY at the Asian Aerospace conference in Hong Kong (DAILY, Sept. 10, 2009). Taiwan is a member of AAPA, but Herdman ruled it out as an issue. The averag...

India Requests for C-17s

BREAKING NEWS Just wrote this. Thought you might like this- Indias Ministry of Defense has sent a Letter of Request to the US government for procurement through the U.S. governments Foreign Military Sales route for ten heavy lift Boeing C-17s. This follows immediately after United Arab Emirates announcement for the purchase of six C-17s. U.S has been in discussions with the Indian government and Boeing recently completed a series of C-17 demonstration flights in India. In Nov last year, in a joint-lift exercise, the U.S Air Force flew the C-17 in Agra. Aviation Week had reported (Aerospace Daily Aug 19,2009) Boeings keenness to offer India the C-17, which can carry large equipment, supplies and troops directly to small airfields. The C-17 fits in well with Indias operational requirements, Vivek Lall, Head India Boeing IDS had said.The U.S. government received a request for information in 2008, he added then. A senior Indian air force official recently said the aircraft had been chosen ...

SriLankan Airlines Ventures Into MRO With Indian Carrier

News AWIN First Jan 05 , 2010 Neelam Mathews mathews.neelam@gmail.com NEW DELHI SriLankan Airlines is planning a strategic tie-up for maintenance, repair and overhaul with India’s budget carrier IndiGo. IndiGo is expected to be the principal stake holder in the venture, which will open up to other carriers in India, according to an airline official. SriLankan Airlines is in the process of restructuring its operations and has plans to hive off its engineering and ground-handling operations into wholly owned subsidiaries that will function independently. This is a win-win option, said an analyst. IndiGo signed a year-long contract with SriLankan last year for conducting C checks on 10 of its A320s family. Indigo has now signed another contract for C2 checks with SriLankan Airlines for 2010. Managing relationships is what Indigo appreciates, and the fact that the airline is in it for the long-term, Paul Dempsey, production planning manager for SriLankan Airlines told AviationWeek. Growth ...

India moves to quell insurgents and regional threats

World Conflict Guide Domestic And Regional Threats Trouble India Defense Technology International Jan 01 , 2010 , p. 32 Neelam Mathews New Delhi India moves to quell insurgents and regional threats Printed headline: Back From The Brink Beneath the economic strength, industrial vitality and rising standard of living that most people see in India, there is a dark and violent side born from decades of neglect, discrimination and regional tensions. These have spawned insurgency and terrorism that threaten stability and economic gains. Added to this are neighboring countries with their own interests and threats, and it’s clear that India has problems that must be resolved by diplomacy, social programs or credible shows of force. “We have not utilized our strengths. We need to develop bilaterals with each of the South Asian powers and cannot rule out a China connection,” says Jagannath P. Panda, associate fellow at the Institute for Defense Studies and Analyses here. Indian army soldier fir...

Money No Object As India Raises Defense Spending

Money No Object As India Raises Defense Spending Defense Technology International Jan 01 , 2010 , p. 48 Neelam Mathews New Delhi India ramps up procurement Printed headline: Buying Power India’s defense budget for 2010-11 is expected to rise 20% from the previous fiscal year. Factors influencing this include the Mumbai attacks of November 2008, tension with Pakistan, security for India’s 7,600 km. (4,722 mi.) of coastline and the need to protect ocean shipping, an economic lifeline. “There is no limit to security expenditure,” a defense ministry official tells DTI. “Whatever is asked for, is given.” The memory of the Mumbai attack has put the government under pressure to procure more and better equipment. Prime Minister Manmohan Singh has stated that security modernization is crucial to economic development. With this in mind it is not surprising that in 2009, Israel, a country with long experience in security, surpassed Russia as India’s leading arms supplier. India purchased air and...