Aerospace Diary

Posted by- Neelam Mathews Feb 28, 2013 As part of the Union Budget for the fiscal year 2013-14, which was presented in the Parliament of India earlier in the day today, the budgetary allocation towards capital expenditure, which caters mostly towards fresh procurement programs of military hardware and platforms, has been kept at US$16.06 billion. The capital allocation has increased by 9 percentage points as compared to original planned capital expenditure of US$14.74 billion for the last fiscal year 2012-13. Against all expectations the defense budget was increased (though smaller) as compared to the previous year. Overall, the budgetary allocation for India's defense forces has been raised to US$ 37.72 billion as compared to last fiscal year figure of US$35.82 billion, an increase of 5.31 percentage points. % increase from 2012-13 (Budget): 9.00% % increase from 2012-13 (Revised): 24.67%          ...

Neelam Mathews Feb 28, 2013 At Aero India when AerospaceDiary asked the first question at the Minister of Defense press conference on the forthcoming budget , we were told the budget would be slashed.. India's  Defense now gets Rs  203,672 crores' as against last year's Rs 1.95 crores, an increase of approx 4.5% .  Of the total defense outlay for 2013-14,Rs 86,741 crore will be for capital expenditure.  In any case the rupee depreciation last year actually shrank the budget! So how much of this is an increase, needs to be seen. Finance Minister added: "The minister of defense has  been understanding and I have  assured him constraints will not come into the way (in case money is urgently needed).  " Despite our constraints we must find funds for science and technology, space and nuclear science," which have been given a substantial Rs   6780crore. Of this Rs  5600 cr. is for the ministry of space.

Neelam Mathews Feb 27, 2013 We will get to the bottom of this," said AK Antony in Parliament on the AW helicopters scam deal answering a query of an Opposition party member. How low is the bottom, we ask? Like the deep blue sea, one suspects. a place we can never reach! No talk about why the Integrity Pact that makes it mandatory for the Italian company to release information in case of foul play. What sort of wussies are we? Release big amounts of cash and have the OEM dictate to you? Antony made sure his boring speech that totally went off track with a bit of emotion, had most of the members snoring! We will get to the bottom of this, said Antony."My party is fully backing me."  Really?  So, what's new? "There is a sense of helplessness..," said Jaitley of Antony's speech. Find the bribe-takers, he said. "For 3 decades India has a no middlemen policy. Have we made a breakthrough in a single  case?" 'What did the Bofors JPC d...

Neelam Mathews Feb 27, 2013 Defense Research and Development Organisation (DRDO) has proposed to set up two Missile Test Ranges at  Rutland Island at Andaman and Nicobar Islands and  Nagayalanka in Krishna District of Andhra Pradesh. A proposal for diversion of forest land in Andaman and Nicobar Islands has been initiated by DRDO. A request has also been made to the Government of Andhra Pradesh to spare unassigned revenue land and reserve forest land at Nagayalanka. Both the projects for setting up of Missile Test Ranges are at the initial planning stages and land acquisition process is on, said  Defense Minister  AK Antony in Rajya Sabha today.

AIN AIR TRANSPORT PERSPECTIVE  »  FEBRUARY 25, 2013 by    NEELAM MATHEWS Malaysia-based AirAsia has announced plans to launch a new domestic airline in India before year-end. (Photo: Airbus) February 25, 2013, 1:52 PM Malaysia’s AirAsia has unveiled plans to launch a new domestic airline in India by the fourth quarter of 2013. Under the terms of a deal announced on February 21, the largest low-fare carrier in Asia will hold a 49-percent stake–the maximum holding permitted by the Indian government for a foreign investor–in the new airline. AirAsia is partnering with major Indian industrial groups Tata (to carry a 30-percent stake) and Telestra Tradeplace (21 percent). AirAsia chairman Tony Fernandes has decided against buying into an existing Indian domestic airline, as he could have done under foreign investment rules revised last year. By contrast, Abu Dhabi’s Etihad Airways recently confirmed plans to buy 24 percent o...

Neelam Mathews Feb 25, 2013 Press Release Minister of Civil Aviation, Ajit Singh has decided to withdraw all International Bilateral Traffic Rights allocated to Kingfisher Airlines with immediate effect. Under the said rights,  Kingfisher Airlines was allowed to fly to 8 countries namely Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), SriLanka (14 services per week + 21 services per week from unlimited 18 destinations), Thailand (21 services per week), UAE Dubai (21 services per week) and UK (7 services per week each from Mumbai, Delhi and Bangalore). These traffic rights were allocated to Kingfisher Airlines between the year 2008 and 2011. These international traffic rights have been withdrawn from Kingfisher Airlines on account of non-utilisation by the airlines.The Civil Aviation Minister has decided to make these International traffic rights available to other carriers for use. This ...

Aerospace Diary: Opinion- Jet- Stress Signals - Committing Harakiri?

Neelam Mathews Feb 24, 2013   Before the rumor mill goes amuck, we at AerospaceDiary learn from a pretty reliable source that the new CEO of AirAsia India (I like the sound of that!) will not be from the airline industry. Again, we cannot confirm this and just reporting a strong tailwind. However, we do know from past history of the airline, there were few airline-associated top guys, starting with founder,Tony Fernandes, who refers to himself as a ‘dreamer’ in his twitter profile, while Azran, the CEO of AirAsia X calls himself a “madhatter running AirAsiaX, or sometimes just running aimlessly. Outdoor freak.or sometimes just freaking out randomly. On a plane!” Azran in Paris It is becoming increasingly clear the new guy will also be out of the aviation space, bringing in fresh ideas while the Tatas strive tirelessly with the regulator making it possible for Tony's dream to become a reality.

Neelam Mathews Feb 23, 2013 Wonder of wonders, I don't know whether to laugh or cry ( tears of joy) that FICCI has released the dates for the Hyderabad India Aviation show! So before I start to get disrespectful, I think a  a record may have been broken in our country. Unlike in the past- disdainful to the needs of visitors and exhibitors- rarely do organizers announce dates for an event so much ahead of time. Oh yes, the dates are March 12-16, 2014 at Begumpet Airport in Hyderabad. Hope to see one and all there. Hopefully, memory of the present bombings will be behind us and FICCI will be in a position to attract many more exhibitors and a good mix of participants. Now, one can hope that the agenda too will come on time, unlike Aero India, where interviews were fixed at the last minute and one was moving around like a headless chicken.

Neelam Mathews Feb 23, 2013 Hi guys- its just a buzz- nothing confirmed, nothing reported. Expect to hear many more rumors in coming days! We hear Sanjay Agarwal of Kingfisher Airlines whose last day at KFA is Feb 28, will be Air Asia India's CEO. W ord has it that he is taking people from his old airline SpiceJet along with him. Many say it is interesting that AirAsia should pick up a legacy carrier's CEO that brings with him a five star cost structure. But then he was with SpiceJet too! Others say he knows the market and all its travails and how to survive to a point!  The fact is whoever the chief of this organisation is, will have to learn to get his hands dirty and multi-skill- the basis of AirAsia's success.

Neelam Mathews Feb 23, 2013 timescontent.com India's first budget airline Air Deccan made  its first flight in Aug 2003. It was no cake-walk for founder G.R Gopinath, who showed a similar grit asTony Fernandes- who already  two years into the business, had started shaking up everything that was previously sacrosanct.  Today, AirAsia is making making an entry into India and dare I say, we'll have our hats truly off to Fernandes if he manages to shake our moth-ridden system with fresh concepts.  Take the airports for instance. Many years ago, in an interview during Formula One in Bahrain with me, Tony called airports in India, "vultures." They still remain that and AirAsia is rather sagely keeping away from Mumbai and Delhi for the moment. Tony said during a press concall he hopes to convince them to relook at costs. At AerospaceDiary, we have our bubbly ready to cork if that happens! Tony also hopes that the five-year minima for Indian carriers to fly ...

Neelam Mathews Feb 22, 2013 When will we as a nation stop shaming ourselves? I am no saint and don't profess to be one but as a silent bystander observing the stuff around us, often wonder, how can we be so passive to happenings around us with such finesse, lack of concern and no appetite to question. Take the RFP the BSF released for two medium transport that had CASA 295 and Alenia's C-27J as final contenders in 2010. The Technical Evaluation Committee cleared  the L1 CASA 295 that came in for commercial opening in 2010. When the contract negotiations started, an MoD official told Aerospace Diary that suddenly the BSF needed a civil certification (not mentioned in the RFP). The OEM, it is believed, agreed. However, out of the blue, it was announced ownership was an issue as was the maintenance of the aircraft. It was also pointed out rather late in the day,a signature had been forged  during the TEC. Why this was done remains a mystery till this day. Nobody was brought...

Neelam Mathews Feb 22, 2013 SR Technics, part of the Mubadala Aerospace MRO network, has appointed Christof Späth as Senior Vice President Component Maintenance Group. In this new role he will be responsible for Component Maintenance across the Group, fostering globalization of the Mubadala Aerospace MRO network by leading the component repair locations in Switzerland, Spain and Malaysia. Reporting directly to André Wall, President, SR Technics, Späth will be part of SR Technics’ Leadership Team.

Neelam Mathews Feb 21, 2013 Tony Fernandes will start filming the series of 'Apprentice' (Asia) (remember Donald Trump?) starting this monday, he told Aerospace Diary during a telephonic press conference a few minutes ago. "The response from India has been tremendous," said the low cost airline Asian tsar who added that the series would help in enhancing the AirAsia image in India. "But, lets not kid ourselves," the product needs to deliver what it promises, he added. On whether AirAsia was likely to put some airlines out of business, he said: "Businesses put themselves out of business provided they capitalize and have the right business model."

Neelam Mathews Feb 21, 2013 Analysts we spoke to could not  fathom Jet Airways rational for the destructively low fares it has put into place- around   two million tickets with immediate effect.  The only people with smiles on their faces are the passengers who get a respite from the comparitively high but saner prices that had come to roost.  Now with Air Asia around the corner with a penchant for cutting fares, I can see all airlines sweating before summer comes. And while Jet might have set the trend for cut throat prices with SpiceJet and Indigo to follow, the fact remains that operating costs of these carriers are around 45% less than a full service carrier like Jet that has to bear the costs for FFP, IFE and catering costs among others. So the question is: "Who is hurting whom and who is committing harakiri here? While SpiceJet had a limited offer last month for slashed fares, it did not dilute its immediate travel nor cannabalize on existing traffic...

Neelam Mathews Feb 21, 2013 Just when we thought the Tatas were not interested in aviation, AirAsia Berhad  through its investment arm, AirAsia Investment Ltd. (“AAIL”) has submitted an application to the Indian Foreign Investment Promotion Board (“FIPB”) to seek approval for AAIL to invest 49% into a proposed Indian joint venture together with Tata Sons Limited and Arun Bhatia of Telestra Tradeplace Pvt. Ltd.. This move comes amidst the backdrop of the September 2012 decision by the Government of India to open up the aviation sector to Foreign Direct Investment from foreign carriers, says a statement Subject to FIPB approval, the proposed joint venture company will make an application to Indian aviation regulators for the Air Operators Permit. The parties have signed a Memorandum of Agreement that details high-level terms with regards to the proposed partnership. Currently Asia’s largest LCC with 118 aircraft and over 350 orders, AirAsia believes Indian aviation has e...

Neelam Mathews Feb 19, 2013 Subit Kobiraj, General Secretary of CNS Officers’ Guild has been appointed as the Vice‐President of the International Federation of Air Traffic Safety Electronics Associations (IFATSEA). This is the first time that India has got the post of Vice President in the Executive Board of IFATSEA, the federation representing ATSEPs in ICAO and other international Bodies. IFATSEA is the global body for the representation of Air Traffic Safety Electronics Personnel (ATSEP) on professional matters. IFATSEA has more than 20,000 members from 60 countries worldwide.

Feb 19 Press Statement A Su-30 aircraft of the IAF crashed at Pokharan Range on 19 Feb 2013 at about 1920h. The aircraft was on a night flying training mission. Both the pilots ejected safely. There is no reported damage to any civil property or life on ground. A Court of Inquiry has been ordered to investigate into the accident.

Neelam Mathews Feb 19, 2013 AAIs twice released bid for the Airport Operations Control Centre (AOCC) at ten airports is moving, according to an AAI spokesman speaking to Aerospace Diary today. The tenders are now under technical evaluation, and "hopefully by the third week of February, we will open the financial bids and then go for the approval process." The AOCC will bring together the diverse processes relating to the passengers, cargo and baggage through an improved coordination through integration and optimisation of existing  resources.  Mumbai's Chhatrapati Shivaji International Airport was the first to set up AOCC in the country followed by Hyderabad's Rajiv Gandhi International Airport and later in Bangalore.

Neelam Mathews Feb 19, 2013 The fate of 40 leased Kingfisher Airlines aircraft parked at numerous airports in India, is to be decided on Feb 21 at a meeting with the aviation secretary, AAI chairman  V. P Agarwal told AerospaceDiary today. He said the reputation of India could be at stake with lessors losing trust (in the country's legal machinery as many were covered under the Cape Town Convention). "These aircraft cannot be detained," said Agarwal. "There are some aircraft (parked) because of non payment of  Service Tax  , at some places the JV partners are not allowing them to be released......," he added. Kingfisher has given "no concrete proposal to us  on payment of dues, that are over INR 390 crores, Agarwal explained. We are asking for a firm commitment for payment to be done....We already have an INR 117crores  bounced cheque that cannot be cashed...they have to give (us) guarantee."

AIN AIR TRANSPORT PERSPECTIVE  »  FEBRUARY 18, 2013 by    NEELAM MATHEWS Indigo wants to import 16 more A320s, but India's arcraft acquisition committee has issued clearance for only five. February 18, 2013, 4:15 PM India’s fastest growing and most successful airline–budget carrier IndiGo–has become the first victim of an October ruling by the country’s aircraft acquisition committee governing the number and kind of aircraft imported by airlines to encourage regional connectivity to smaller towns. In November, the committee, led by civil aviation minister Ajit Singh, cleared for import only five of the 16 Airbus A320-series aircraft Indigo wanted to acquire. “We know that operating an airline is a costly affair,” Singh said last month, “so [airlines] want to have only one type of aircraft as it reduces the operational costs. Hence, they need to be encouraged to also acquire smaller aircraft to fly to tier-two and tier-th...