Aerospace Diary

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 ...

Posted by- Neelam Mathews June 25, 2013 Press Release SEPANG, 25 June 2013 –  AirAsia today announced its decision to terminate its participation in the joint venture with ANA Holdings Inc. under AirAsia Japan with the signing of a termination agreement.  The joint venture, created two years ago under the name AirAsia Japan faced many challenges since its launch. Issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based. AirAsia Berhad through AirAsia Investment Ltd. had subscribed 25,120 voting shares and 23,880 non-voting shares at JPY 50,000 per share, which represented forty-nine percent (49%) of the paid-up share capital in AirAsia Japan. The termination comprises an acquisition of AirAsia’s entire shareholding in AirAsia Japan by ANA Holdings Inc. for JPY 2,450,000,000 (approximately RM80,475,150 base...

Neelam Mathews March 11, 2013 The ministry of civil aviation's decision to permit airlines form a JV, a subsidiary or "a consortium," for ground handling in Oct last year, was echoed by minister Ajit Singh at a recent conference in Delhi. The case, subjudice, is expected to come for a hearing in the Supreme Court in a few days and bring the matter to rest. That there will be congestion in the apron area if every airline handles on its own, was brought out by the minister who made it clear that airlines could not independently do the ground handling. His suggestion that airlines create a consortium has resulted in more queries. A fact that is little known is that the airlines will only be allowed to form a JV when the ministry releases a new bid! If this were to happen, questions remain. "How does an airline handle two flights at a time for instance? Besides, they are all competitors! Also, can an airline afford all the expensive equipment that is mandated now ...

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 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."

Neelam Mathews Statement on Joint Venture Jan 23, 2013 Received this press release that is  a bit blurred- NEW DELHI–Since the establishment in 2009 of the Mahindra & Mahindra (74%) and BAE Systems (26%) Joint Venture, Defence Land Systems India (DLSI), both shareholders recognise that significant evolution has occurred in the Indian Land Systems market. Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to institute a strategic review of the business. This review will assess any changes necessary to address the evolving market and to meet emerging customer requirements. No decision has yet been taken on the way forward.

Neelam Mathews Jan 8, 2013 Virgin Atlantic Airways has today appointed Craig Kreeger as its new Chief Executive. He will assume the role on 1st February 2013. He joins from American Airlines (AA), where he has held a 27-year career spanning commercial, financial and strategic roles in the US and around the globe. Kreeger, 53, succeeds current CEO, Steve Ridgway, who is retiring from the airline. Steve has had a 23-year tenure with Virgin Atlantic and became Chief Executive in 2001. During his time at the airline, Virgin Atlantic has grown from two 747s to a fleet of 40 long haul aircraft, flying six million passengers a year all over the world. Kreeger joins at an exciting time for the airline as Delta Air Lines and Virgin Atlantic finalise their agreement for a new joint venture that will create an expanded Trans-Atlantic network. This new venture will materially enhance competition between the UK and North America, offering great benefits for customers travelling on thos...

As Aerospace Diary reported on Aug 24,-here’s a press release sent today Aug 29, 2012 Following the signing of the Memorandum of Understanding on November 17, 2009 ,  Navratna Public Sector Company, Bharat Electronics Limited  (BEL)  and Thales   are delighted to announce that the Boards of both companies have approved the formation of a Joint Venture Company subject to statutory approvals of the Government of India and the French Government. The JVC will be dedicated to the design, development, marketing, supply and support of civilian and select defense radars for Indian and Global markets. The parent companies aim at making the Joint Venture Company a centre of excellence with the ability to offer solutions specifically aimed at meeting the needs of both Indian and export customers. In strict accordance with Indian regulations, Thales will hold 26% equity, the maximum allowable holding interest by any foreign company in the defence sec...

  Posted by- Neelam Mathews March 31, 2012 As we reported two days back , Data Patterns Group and SELEX Galileo, a Finmeccanica Company, have signed a Head of Terms agreement with a view towards forming a Joint Venture later this year.  The JV will be located in Chennai, India and “will focus on a broad range of defense electronic products and state-of-the-art technology developments. The two companies will leverage their strong development and manufacturing capabilities and their advanced product ranges.”  The JV will be their primary vehicle for bids. The joint venture will provide greater thrust to critical technologies at a product and system level in ‘Buy and Make’, ‘Make’ and ‘Offset’ programs in the areas of Avionics, Navigation, Radars, UAVs, FINSAS etc in the Indian defense market and also facilitate access to export markets. “This joint venture will bring a technology value to India’s growing defence programmes” said S Rangarajan, CEO of Data Patterns Group...