Aerospace Diary

AINONLINE by    NEELAM MATHEWS Etihad CEO James Hogan (right) and Jet Airways chairman Naresh Goyal meet in New Delhi. (Photo: Neelam Mathews) July 24, 2014, 11:12 AM India’s loss-making Jet Airways and its new 24-percent owner Etihad Airways are formulating plans for restructuring debt and fleet rationalization for enhancing a full-service branding. Jet, reporting $689 million in declared losses last year, expects to show profits by 2017, founder and chairman Naresh Goyal said at a July 23 press conference in New Delhi. A slowed economy, infrastructure constraints, and rupee depreciation have in the past years resulted in massive losses for airlines in India. Nevertheless, Etihad Airways president and  CEO  James Hogan ruled out any exit strategy. “This is not an overnight turnaround,” he said. “It’s a structured rebuilding process…We have a responsibility to shareholders of the company…for return to sustainable profitabil...

AINONLINE by    NEELAM MATHEWS The Airbus C-295 might be the only qualified contender for India’s Avro 748 replacement project. (Photo: Airbus Defence & Space) July 22, 2014, 2:50 PM The new Indian government has re-issued the request for proposal ( RFP ) for 56 transport aircraft worth an estimated $2 billion, to replace the Indian Air Force’s aging Hawker Siddeley 748M twin-turboprops, known as Avros. The final date for submission of bids is August 28. The contract is expected to be awarded in late 2015 or early 2016. The candidates will likely include Alenia with the C-27J, Antonov with the An-32, and Airbus Defence  &  Space with the C-295. However, a decision on whether Alenia can bid is pending, after the  controversial sale of  AW 101 helicopters by fellow Finmeccanica subsidiary AgustaWestland was halted . There are also concerns about Antonov, from war-torn Ukraine. Should the C-295 end up as a sole bi...

Neelam Mathews July 21, 2014 There are some things that are seriously wrong with our industry and one is surprised how they never get pointed out. I got this story by default. Thanks to social media, I got an SOS from a young man requesting help to be introduced to some MRO companies to keep him as an intern for 6 months which he is willing to do without a salary. Such is the structure of the curricula that without the training at a maintenance facility, he doesn't get a certificate. So far so good, but, now we get into murky waters. MROs at airports are not allowed to take on trainees unless they are hired as technicians "due to security issues." So the same person can enter the airport as a technician -literally forcing companies to fool with books- but not as a trainee as that makes him a security risk! Really! Why have such a course? Or even better, why not start to update it? We hope the new dynamic minister of education is listening. We are also hearing t...

Neelam Mathews June 19, 2014 JRD might be smiling benevolently from where  he is resting. A picture released on twitter shows perhaps the very first look at India's Tata (Airlines) (Tata-SIA), the new name as it appears on the aircraft in blue and white colors? As somebody remarked: "Looks like their corporate jet colors." So unless they have bought an A320 as a corporate jet, this could be the new face of the airline. The decision on the name - if it is so- is a move away from SIAs trend to brand its subsidiaries with names like SilkAir and Scoot. But then, Tata Airlines is no subsidiary! The branding is clear- you can identify it from as far as the eye can see. And history repeats itself, except that the choice of aircraft is different from the time the Tata's ran a postal service in the last century. Congratulations, either way! We as Indian citizens have a lot of expectations. Hopefully, they won't be misplaced.

Neelam Mathews July 19, 2014 If you thought the end of losses for airlines operating in India was history, you might want to think again. So volatile is the situation that with the possible start of giant Tata-SIA soon, even Jet-Etihad has realized it cannot be silent anymore. A press briefing called next week will have both Naresh Goyal and James Hogan addressing us mere mortals. Don’t bash me up for this, but besides the fact they are expected to inform us on how the India market figures in their strategy, we are hearing a buzz that they might even announce the acquisition of a large ailing budget airline (SpiceJet?) that is suffering from TDS and service tax payment defaults. However, AerospaceDiary could not confirm this.  Just reporting a buzz! Moreover, that is where, we suspect a blog differs from a newspaper report. Taking a bit of editorial leverage here! Air India has joined Star Alliance and that might give it a temporary relief as it adds more codeshares to ...

Neelam Mathews  - IHS Jane's Airport Review 17 July 2014 ATC  The incoming BJP government led by Narendra Modi must surmount a number of aviation obstacles Even as the Indian Parliament prepares to clear the creation of an independent Civil Aviation Authority to replace the Directorate General of Civil Aviation (DGCA), the corporatisation of Air Navigation Services (ANS) is top on the list of the new Prime Minister Narendra Modi's 100-day agenda. Other immediate plans include establishing low-cost airports. Some aviation insiders harbour serious concerns about ANS corporatisation. Subit Kobiraj, president of the CNS [Communication, Navigation and Surveillance] Officers Guild, described "grey areas" in the implementation plan - and  IHS Jane's  has seen a letter dated 4 July, addressed to the AAI Member ANS from Shamsher Singh, general secretary of the ANS Guild. ....read more on Janes Airprots Review

Media Statement : MH17 Incident Released at 12:30am/18 July 2014 Malaysia Airlines confirms it received notification from Ukrainian ATC that it had lost contact with flight MH17 at 1415 (GMT) at 30km from Tamak waypoint, approximately 50km from the Russia-Ukraine border. Flight MH17 operated on a Boeing 777 departed Amsterdam at 12.15pm (Amsterdam local time) and was estimated to arrive at Kuala Lumpur International Airport at 6.10 am (Malaysia local time) the next day. The flight was carrying 280 passengers and 15 crew onboard.

FARNBOROUGH AIR SHOW  »  2014 by    NEELAM MATHEWS Along with Thailand’s Board of Investment, Amata Corp., a developer and manager of industrial parks in Southeast Asia already established in Bangkok, Chonburi and Rayong, as well as in Vietnam, has big plans for an aerospace cluster in Thailand, which could include MRO facilities serving airlines such as Thai Airways. July 15, 2014, 6:20 AM In view of its success in nurturing a thriving automobile industry–the ninth largest in the world–and as Asia edges toward becoming the world’s largest growth market for aviation, Thailand’s Board of Investment ( BOI ) is considering building an aerospace industry starting with Tier 2 and Tier 3 suppliers servicing global  OEM supply chains. The  ASEAN  Economic Community ( AEC ) regional economic integration plan envisions establishment of a single market and production base by 2015. Thailand already has an $800 million a...

Neelam Mathews July 15, 2014 A statement released today might bring a ray of hope to a fledgling industry. However, the government really needs to get that policy official- there has to be an end to adhocism. Here goes- The Minister of State for Civil Aviation, G.M. Siddeswara informed the Rajya Sabha today that though the Government has not prepared any formal policy on aircraft Maintenance, Repair and Overhaul (MRO) facilities, necessary constraints have been identified in consultation with the stakeholders which affect the growth of MRO activities. In this regard, the Ministry of Finance has been requested to remove Service Tax on MRO work or provide a Service-tax holiday for ten years and Custom duty on import of consumables and tool-kits used by MROs as are applicable to airlines maintaining their own aircraft, along with providing faster custom clearance round-the-clock on all days. The Finance Ministry has also been requested to simplify the procedures of custom cl...

Neelam Mathews June 14, 2014 Publication: Jane's Airport Review New Delhi-based OIS-AT reports that its 3-D bird detection radar has elicited interest from undisclosed Asian countries, after it underwent trials with the Indian Air Force (IAF). The IAF has a requirement for 45 units. In launching a global tender in 2013, it estimated that bird strikes are responsible for around 10% of accidents to its airframes, which pose a particular concern for low-altitude training exercises. The OIS-AT radar can be deployed at airports, wind farms, military artillery sites, and for bird migratory studies. The system can detect up to 1,000 objects simultaneously at an altitude of 10,000 ft and a maximum range of 11 km, and provides 360-degree azimuth coverage with sector blanking option. Images can be loaded on a website of the customer's choice and are available for transmission to the airport control tower. 1565893 OIS reports interest from unnamed Asian coun...

Neelam Mathews July 15, 2014 Air India became the 27th member of Star Alliance on 11 July in an official ceremony at Indira Gandhi International Airport (IGIA) in Delhi, India. An earlier invitation for Air India to join Star was extended in late 2007, but was later withdrawn after the airline failed to meet the minimum criteria to join. The business environment has changed since then. Air India showed signs of stability while European airlines lost market share to Middle Eastern carriers, and Star approached Air India again in December 2013. Air India has met 221 of the 226 requirements to join the alliance, Air India chairman and managing director Rohit Nandan told  IHS Jane's  a few days before the ceremony. More on ...IHS Janes...

FARNBOROUGH AIR SHOW  »  2014 by    NEELAM MATHEWS July 14, 2014, 7:00 AM A slowdown in reforms in India over the past five years–and a virtual pause in procurement–may be about to change following renewed optimism and confidence as the new government shows, for the moment at least, that it is serious. As hectic activity takes place in the ministries of commerce, finance and defense, increasing manufacturing, exports and foreign direct investment ( FDI ) are focus areas of the new regime. A proposal to increase  FDI  levels from the present 26 percent to 49 percent, and possibly later, 74 percent for transfer of production (build to print) and 100 percent in the case of a single-source-hub transfer, including transfer of technology, is being viewed with interest. While India has moved steadily in automobile and automotive components manufacturing, with auto giants leveraging the country’s strengths in  I...