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India’s New Defense Investment Policy Disappoints

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AIN DEFENSE PERSPECTIVE  »  JULY 19, 2013 by    NEELAM MATHEWS Indian commerce minister Anand Sharma (Photo: Ministry of Commerce, India) July 19, 2013, 11:45 AM Indian commerce minister Anand Sharma announced the raising of the country’s cap on foreign direct investment ( FDI ) in 13 important industrial sectors, including defense. But while the defense industry was expecting the cap to be raised to 49 percent from the present 26 percent, Sharma said that defense proposals for more than 26 percent will be permitted only for state-of-the art technology for which, the Cabinet Committee on Security ( CCS ), a body that decides on matters of national security, will consider any proposals “on a case-by-case basis.” Because “state-of-the-art” products were not defined, it falls to the Ministry of Defense to make the decision, said Sharma. “So what’s new? This is a classic case of pulling wool over eyes to show India has made ...

Brazil- To buy or not to buy and when to buy?

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Posted by:  Neelam Mathews Jan 8, 2012   Even as India is believed to have given a June deadline to Dassault to present its offset plans, LaTribune reports Brazil, yet to decide on its MMRCA, has said Rafale’s maintenance costs are higher compared to its competitors, the Gripen (Saab) and F-18 (Boeing). “This does not mean that the Rafale is out of play,” it notes. (French to English translation of the article in Google of the Tribune  isn’t the world’s best! Apologies) But, here goes- some major points: There are many supporters of the Rafale that say:. "This is the most technologically advanced aircraft……We have many things to learn from cooperation with Dassault Aviation…..But the French offer must be better explained or otherwise improved," said an official to the Tribune. “As for the F/A-18 Hornet (Boeing), another rival for the Rafale, it benefits from euro / dollar rate to be competitive with the French aircraft,” quotes the paper. Like...

Airbus Corporate Foundation gets new Chairman

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Airbus Corporate Foundation appointed Fabrice Brégier, Airbus President and CEO, as its new Chairman of the Board, succeeding Tom Enders, CEO of EADS, who headed the Foundation since its creation in 2008 and who has been appointed Honorary Chairman of the Foundation.  “I am thrilled to take over this great mission to head the Airbus Corporate Foundation. I will continue to work hand in hand with our Airbus employees as well as with our partner airlines and organisations in order to take the Foundation further”, said Fabrice Brégier. “With a strong footing on the Foundation’s humanitarian and environmental objectives, the organisation will now focus more on local initiatives in Airbus home countries, especially ones that help young people from difficult areas”.

Cassidian develops transmit & receive modules

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Neelam Mathews Nov 22, 2012 Cassidian an EADS company, has developed a new generation of transmit & receive modules which give the new AESA radars with electronic beam scanning (AESA - Active Electronically Scanned Array) previously unattained performance. The multi-mode and multi-tasking capabilities of AESA antennas can be enhanced on a sustained basis while at the same time significantly reducing production costs. The new technology offers operational advantages for the customer that Cassidian can expect AESA radars to be used in many fields of reconnaissance and surveillance in future. The products using the new TRMs include the Eurofighter’s future e-scan radar, the security radars in the Spexer family as well as spaceborne earth observation radars. “Our new-generation modules increase radar performance, while the cost of production is reduced by more than 30 percent,” says Dr. Elmar Compans, head of the Sensors & Electronic Warfare unit at Cassidian. In...

Factory of the Future- EU "ARUM" for small-lot production

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Neelam Mathews Nov 6, 2012 The ARUM (Adaptive Production Management; www.arum-project.eu)  operational between 2012-2015 project aims at improving planning and control systems for manufacturing of complex products in small lot production, such as aircraft and aircraft interiors. ARUM will do this by decreasing the risks of product immaturity and production disruptions, ICT improvements for manufacturing systems and increasing the integration of engineering into production process. The ARUM team will identify mitigation strategies to respond faster to unexpected events and will provide ICT systems and tools to enable this. The overall budget contribution to the initiative amounts to €1.2 billion between 2010 and 2013, to be shared between the European Commission and the private sector. ARUM started in September 2012 and will last for 37 months involving 14 partners form seven EU countries plus Russia. The participants are technology providers (TIE, Certicon, Smart Solut...

Finally! MRTT to EADS?

Neelam Mathews Nov 1, 2012 Airbus Military may have emerged the lowest bidder in the approximate over $ one billion  Multi Role Tanker Transport  ( MRTT ) s ix aerial refuellers bid, Aerospace Diary learns. The IL-78 was its competitor. Should the news be true- we expect it is- the A330 tanker was lower on lifecycle costs- with a big delta.

BAE-EADS abandon merger

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Posted by Neelam Mathews Oct 10, 2012 British defense company  BAE Systems and EADS have abandoned their merger discussions, the companies announced today, blaming the inability of the European governments involved to agree to a deal. “Notwithstanding a great deal of constructive and professional engagement with the respective governments over recent weeks, it has become clear that the interests of the parties’ government stakeholders cannot be adequately reconciled with each other or with the objectives that BAE Systems and EADS established for the merger,” the companies said. “BAE Systems and EADS have therefore decided it is in the best interests of their companies and shareholders to terminate the discussions and to continue to focus on delivering their respective strategies,” said the statement. Ian King, Chief Executive of BAE Systems, today said: "We are obviously disappointed that we were unable to reach an acceptable agreement with our various governmen...

EADS-BAE talk merger as India looks at more Hawks

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Neelam Mathews Sept 14, 2012 Watch two videos below-   Even as EADS and BAE Systems are in discussions to merge the two companies which could result in EADS owning 60 percent, BAE Systems has received a Request for Proposal (RFP) from Hindustan Aeronautics Limited (HAL) for a potential order to supply products and services for the manufacture of 20 Hawk Advanced Jet Trainer (AJT) aircraft. The aircraft, to be built by HAL in Bengaluru, will fulfill the Indian Air Force’s requirement for its prestigious aerobatic team. The combination entity with annual revenues close to $100 billion will result in the creation of a strong competitor to both Boeing and  Lockheed Martin. “EADS brings to the combination strength in European mainland markets while BAE brings strong influence on the lucrative Middle Eastern and South African markets,’ says  an analysis done by Aviotech. The merged company will make its p resence across a larger spectrum of project opportun...

Checks Indicate Chinese Aftermarket Demand Holding Up, Freight still Struggling

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A report by Wedbush Equity Research Posted by- Neelam Mathews March 26, 2012 Checks Indicate Chinese Aftermarket Demand Holding Up, Freight still Struggling • In light of increased concern with the 2012 growth outlook in China, we conducted a number of specific checks to determine the impact on the demand for commercial aerospace aftermarket parts and services. So far, the macro issues in China have not had a negative impact on 1Q 12 aftermarket parts demand. It is true that the Chinese market for aftermarket parts demand will see slower growth in 2012 (~10%-12% as compared to ~20% in 2011), but recent issues have not yet changed the outlook for firms relative to expectations at the end of 2011. Remember China accounts for an estimated 8% of all commercial aftermarket parts shipments. • Any slowdown in aftermarket activity will be initially felt in engine and airframe markets. We have heard that engine is currently somewhat softer now than it was last year (in line with expect...

Tom Enders to take over as EADS CEO

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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...

Cassidian’s new-generation Vehicle Protection Jammer

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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 respond...

EADS new chief?

EADS could name Airbus CEO Tom Enders as its next chief executive as early as Thursday, the Financial Times newspaper reports. Enders' promotion would see the post of EADS chairman pass from German Bodo Uebber, to Arnaud Lagardère, who heads media group Lagardère, the report says quoting unnamed sources. However, the board could still decide to postpone any formal decision about personnel changes into the first quarter of next year, the report said, citing the sources.  EADS declined comment, the report said.

EADS extends tech licensing

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Posted by- Neelam Mathews  July 12, 2011 Five agreements signed by EADS last month have extended the scope of the company’s technology licensing outreach with new industrial partners in India and Europe, says the company. The deals include a contract with Germany’s Grenzebach Automation for metallic production technologies based on the friction stir welding solid-state joining process, along with four Letters of Intent with one German and three Indian companies for metallic and composite manufacturing processes.   The Letters of Intent, backed by an EADS engineering services package include- • India’s Dynamatic Technologies for metallic manufacturing processes such as friction stir welding, as well as EADS patented composites production technologies  • Maini Precision Products for metallic and composites technologies • Tata Advanced Materials Limited, covering a broad range of composites and related manufacturing processes, including the EADS-developed and patented Va...

India moves at a snail's pace on the MRTT

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Neelam Mathews April 18, 2011 Time: 6:45PM IST Even as the first Airbus Military A330 Multi Role Tanker Transport (MRTT) for the United Arab Emirates Air Force has completed its maiden flight and the first of three ordered by the UAE Air Force will be transferred to Abu Dhabi around the end of the year for the final phase of flight-testing and delivery in the second quarter of 2012, India’s bid for its own MRTT, continues to remain in limbo. The Request for Proposals (RFP) for six tankers has been released twice over the past four years. In pursuit of the around $2 billion IAF tanker program, two main competitors have emerged – the Ilyushin Il-78s and the Airbus A330 MRTT- the re-trials for which are yet to be announced.  One wonders at the stoicism and perseverance of these companies that are willing to spend millions of dollars on bids and the indecisiveness of the Indian government that will ultimately result in India paying for higher procurement costs. Last year, the Mi...

Titanium for offsets?

Exclusive Time: 11.26 AM IST April 5, 2011 Neelam Mathews As the government looks at announcing more clauses to its defense offsets policy this summer, expected to  now include transfer of technology, OEMs could be looking at titanium as a way of meeting the country's obligatory offset requirements. With civil aviation included under the defense offsets umbrella and new gen aircraft like the Boeing 787 requiring lighter metals, this might prove to be a winner, officials say. While there are efforts in this direction already, ( http://aerospacediary.blogspot.com/2010/12/titanium-supply-could-become-part-of.html ), India remains a slow starter.  India is estimated to import around 60,000 tons of titanium dioxide every year. Interestingly during question hour in parliament last year, one of the reasons for the delay in developing the Kaveri engine for the LCA was attributed to the  non-availability of critical materials, such as  nickel and titanium based alloys ...

India’s Industry Tries To Climb Supply Chain Ladder

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Aviation Week & Space Technology Feb 14 , 2011 , p. 36 Neelam Mathews Bengaluru Leithen Francis Bengaluru Massive offset demands expected to help spur India’s industrial wherewithal Printed headline: Building Project India’s aerospace industrial growth strategy is about to get a major shot in the arm, with the government planning to spend more than $80 billion on procurement in 2011-15, triggering a huge inflow of offset deals by the winners. The activity is also causing the industry to restructure, with streamlining efforts and consolidation on the horizon as businesses shift focus from serving the local market to becoming globally viable players. India’s Defense Offsets Policy mandates that 30-50% of a contract total be plowed back into the domestic aerospace industry. New Delhi hopes that after years of unsuccessfully trying to get the aerospace industry to stand on its own two feet, this surge in activity will ...

Indian Military Seeks Advanced Technology Agency

Aerospace Daily Dec 1, 2010 FUNDING & POLICY NEW DELHI — Indian military leaders are calling for the creation of an agency similar to the U.S. Defense Advanced Research Projects Agency (Darpa) to develop new military technology. “This indicates the realization of a ‘futuristic element’” in Indian technology development planning, said a delegate at the National Seminar on Aerospace Technologies (N-Sat) held here Nov. 24-25. “The Indian air force, for instance, is looking at sensors and weapons packages beyond the Su-30MKIs and Medium Multi Role Combat Aircraft. "We have been guilty in the past of not looking at strategy,” says former air chief S.P. Tyagi. “There is a direct link between technology and economic growth. In India, we have a very long way to go for both R&D and manufacturing.” With security issues threatening progress, the military needs to develop all of its capabilities, Air Chief  Marshall P.V. Naik says. “It is important to safeguard national info...

EADS Offers Mako Trainer Technology For Indian LCA

Aerospace Daily July 08, 2010 PROGRAMS EADS Military Aircraft Systems is in talks with India’s Aeronautical Development Agency (ADA) to offer technology support for the Light Combat Aircraft (LCA) that originally was developed for the abandoned Mako trainer. A $20 million contract between EADS and India for consultancy on flight trials of the LCA is also set to be finalized by the end of the year. ADA is responsible for the design, monitoring and development of the LCA project. The consultancy contract to EADS will fast-track flight testing toward Initial Operational Clearance (IOC) and Final Operational Clearance (FOC). The scope of work includes Flight Envelope Expansion, High Angle of Attack flight testing and aero-data validation,external stores carriage and release and flight tests. The Mako High Energy Advanced Trainer (HEAT) project was abandoned because it was felt there was no room for an additional trainer in Europe, with Italy’s Alenia Aermacchi M-346 aircraft and...

Embraer Not Interested In Partnership With EADS Group

Airframers/Suppliers Aviation Daily Jun 11 , 2010 , p. 16 Neelam Mathews Even as the EADS group said at the ILA Berlin Air Show that it is considering establishing a partnership with Embraer, the Brazilian airframer says it has no plans to reciprocate. “We did some studies for the turboprop market, spoke with some companies, including ATR," spokesman Carlos Eduardo Camargo tells The DAILY, "and currently we have decided not to move on with it.” Embraer has not signed any agreement with EADS for the development of the new Airbus A320 and does not plan to do so, Camargo says. "We are really focused on the future of our airline market segment." “We have big respect for Embraer,” Louis Gallois, CEO of EADS, said, adding, “We are eager to find ways of partnering” (DAILY, June 10). “We are very flattered with those comments. Embraer and EADS have a long-term relationship, as they were our shareholders until 2007, they had a seat on our board of directors, and...

EADS Opening Innovation Center In India

News EADS Opening Innovation Center In India Aerospace Daily & Defense Report Dec 04 , 2009 , p. 11 Neelam Mathews NEW DELHI – European aerospace giant EADS on Dec. 4 will formally open EADS Innovation Works India, part of the EADS research and development network, in Bengaluru. The center, in the city formerly known as Bangalore, is the third such Asian branch for EADS after sites in Russia and Singapore. The new center will look at developing software and also develop technology for homeland security. It will be a good fit for India and EADS, Chief Technology Officer Jean Botti told Aviation Week. Biofuels and nanotechnology are other areas the company will start working on at its wholly owned facility. EADS is said to be working on algae-related fuels, and there is a possibility that India’s large water-based bodies would be fertile growth tanks. EADS is also looking at working with the Indian Space Research Organization on very fast planes. Botti said the expected freeze on the...