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4 NewsBriefs
W
ITH PRAFUL PATEL BACK AS Civil levied by private airports to ensure that they remain rea-
Aviation Minister, the industry has good sonable and affordable. It is well known that the airport
reason to breathe easy. But the ominous charges in India as compared to other parts of the world
advance of dark clouds across the ho- are high. Hopefully, with a regulatory authority monitor-
rizon clearly signals that the industry may not be out ing the charges, these will be rationalised in the future.
of the woods as yet. Far from it. International price of For now, survival requires airlines to cut the flab
crude is on the upswing. Having doubled in the last and adopt a “lean and mean” policy. Apparently, grim
few months, it is hovering around $72 (Rs 3,500) a bar- realities of the aviation industry seem to have finally
rel—worrying, considering the chances of an economic dawned on those at the helm of affairs, and retrench-
recovery are still remote. ment of employees—which the government had op-
Indications are that Indian airlines in the private posed barely a year ago—is no longer taboo. Further
sector may not benefit from the budget and instead con- delving into the travails of the airline industry, S.R.
tinue down the slippery slope of disaster with the pros- Swarup argues an unique and debatable perspective
pect of respite from the losses accumulated over the last on the realities behind the so-called ‘boom in civil avia-
five years remaining a distant dream. There seems to be tion’, questioning the very premise that there was one.
no option, therefore, but to restructure business models Budding aviation enthusiast Vasuki Prasad presents
with focus on reduction of operational costs. Fuel, which a first-hand account of a microlight expedition un-
accounts for the major portion of operating cost, must dertaken in south India by amateur aviators and aero
logically figure high on the list of priorities for airlines. sports enthusiasts who actually landed their winged
In the long term perspective, the problem of rising contraptions on a—yes—beach in Goa! As always, we
fuel costs needs to be viewed in the context of dwin- bring you the buzz.
dling global reserves of fossil fuels and escalating cost
of production. Joseph Noronha examines the options
before the engine manufacturers to make future en-
gines more fuel efficient. Yet another article explores
the viability of algae—with its promise of continuous
harvest and the possibility of yielding aviation fuel—as
the possible source of affordable biofuel.
Speaking of operating costs, the new government has B.K. Pandey
finally decided to set up the Airport Economic Regula- Editor
tory Authority to keep an eye on the various charges
NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted
NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted
A. Harwood. “In this recession, we 80 per cent received today spoke Spanning 5,00,000 sq m, the
Events Calendar are witnessing a strong demand volumes of these efforts. It was a newly integrated terminal at the
for private planes in India and proud moment, Hungerbuehler international airport is expected
PARIS AIR SHOW
China. A country of India’s size said. Over 6,000 employees of the to be completed by March next
June 15 - 21
Le Bourget Airport, Paris and economic prowess has only airport are involved in the month- year and fully operational before
Website: www.paris-air-show.com 250 private planes, while the US long celebrations on the theme. the Commonwealth Games
has 4,000. Our target is to sell one “We are one,” he enthused. 2010, to be hosted in Delhi.
NBAA BUSINESS AVIATION aircraft a month,” he said. Hawker
REGIONAL FORUM accounts for nearly 60 per cent Security system for new : OPERATIONS
June 24 of the private planes here and terminal at IGI Airport
Signature Flight Support, the other big players are Dassault ADT Security has won the con- Cargo airline Deccan 360
St. Paul Downtown Airport, Falcon, Bombardier and Cessna. tract to provide access control launched in India
St. Paul, Minnesota, USA Since corporate czars buy- and video surveillance security India’s cargo airline, Deccan 360—
Website: www.nbaa.org ing private planes would like systems to the new terminal 3 another bold initiative by Captain
dedicated terminals from where at Indira Gandhi International G.R. Gopinath, the man who
NBAA FLIGHT ATTENDANTS
CONFERENCE they can drive to their aircraft, Airport, slated to open in March introduced the concept of low
June 25 - 27 InterGlobe is bullish on FBO ter- 2010. The $9.3 million (Rs 45 cost air travel in India—is the first
Doubletree Hotel, minals. At present, Mumbai has crore) contract was offered by to launch international freight
New Orleans, USA a terminal for private planes but Delhi International Airport Ltd operations. It was flagged off from
Website: www.nbaa.org faces runway constraints. Delhi, who has been granted the exclu- IGI Airport Cargo Terminal by Dr
on the other hand, has no runway sive rights to develop, manage Naseem Zaidi, Director General of
ACI-NA SMALL AIRPORTS issues but people flying in private and operate the international Civil Aviation. The inaugural flight
CONFERENCE planes have to go through the airport at Delhi. was undertaken by a cargo modi-
July 16 - 17 commercial airline terminals. ADT Security will install a fied Airbus A310 which departed
Sheraton City Center, CEM AC2000 Airport Edition from Delhi for Hong Kong, the
St. Louis, Missouri, USA Bengaluru International system specifically developed for world’s second largest cargo hub.
Website: www.aci-na.org Airport celebrates airports and an IP Video system The airline has plans to very soon
EAA AIRVENTURE first anniversary with analytics to help secure the induct two additional 35-tonne
July 27 - August 2 Bengaluru International Airport new terminal. The integrated cargo capacity A310s and, by
Wittman Regional Airport, at Devanahalli, which completed security system will provide sur- September, six ATR42 aircraft.
Oshkosh, Wisconsin, USA one year of commercial opera- veillance to the multi-level and According to Captain Gopinath,
Website: www.airventure.org tions on May 24, has handled surface carpark and the metro. at present India has seven cargo
8.7 million passengers and The CEM access control system planes with a combined capacity
1,20,000 aircraft movements boasts key features like single of just 120 tonnes as compared
IndiGo forays into during the year. Chief Executive OEM hardware and software; to 100 dedicated cargo aircraft
infrastructure business Officer of Bangalore Interna- intelligent, multi technology card in China. He further pointed
India’s largest low cost airline, In- tional Airport Ltd (BIAL) Marcel readers with onboard database; out that India needed 100 cargo
diGo, is all set to enter the airport Hungerbuehler said 31 airlines web interface to CDC server for planes over the next decade. Dec-
terminal business. The parent were currently operating from remote diagnostics and reporting can 360 has been set up on the
company, InterGlobe, has tied up the airport. Of them, 20 were and the redundancy option to hub-and-spoke concept, with 100
with UK-based BBA Aviation, one international, including three work offline. Similarly, the IP acres in Nagpur being established
of the world’s largest general avia- freighters, and 11 domestic. Over Video system which will employ as a state-of-the-art express cargo
tion terminal operators, to build 80 per cent of flight departures the latest H.264 compression hub. It will connect Delhi, Mum-
similar facility at metro airports were on time and average wait technology has the ability to de- bai and Chennai with domestic
in India. It has already bid for time for delivery of the first bag- liver the same high-quality digital markets and with Hong Kong and
building a “fixed-base operator gage on the arrival belt was just video with savings of between 25 Dubai. Dr Zaidi said government
(FBO)” terminal for users of pri- seven minutes for both domestic per cent and 50 per cent on band- proposals were in the pipeline for
vately owned aircraft in Delhi. and international arrivals. width and storage requirements. opening up the air cargo industry
The company has reasons Hungerbuehler said a large The seamless integration in India, spelling good news for
to be bullish on general aviation number of people, including vari- will enable the airport to handle potential entrepreneurs.
space. It is the sole sales and ous authorities, airlines, conces- operational complexity and
service agent for the US private sionaires and BIAL employees, security-related challenges. The American Airlines flies
aircraft giant Hawker Beechcraft had worked together through integrated system can fully sup- AIRE demonstration
in SAARC region. “In the past highs and lows to make sure the port the operational applications
three months, we have sold as airport stabilised its operations such as passenger reconciliation,
many top line Hawker 4000 that and established itself as truly vehicle management, aero bridge
has a list price of $22.5 million (Rs international, all this in just the monitoring system and check-in
110 crore) apiece. We are on the first year of its operation. The desk enabling which are critical
verge of finalising two more deals accolades received for new to the airport’s ground opera-
for this top-end plane,” said Inter- international connections and tions that annually handle an
Globe General Aviation CEO Nigel the operation efficiency of over estimated 60 million passengers.
NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted
American Airlines is all set to till July 2010, as India did not have Appointments
become the first US airline to enough trained pilots. As per
test new operational proce- DGCA, in 2008, as many as 1,490 Boeing names Ihssane Mounir Sales VP
dures over the Atlantic on a foreign pilots were given licences for Latin America and Africa
revenue flight from Paris to for employment with India’s Boeing has named Ihssane Mounir Vice President of Sales for
Miami. Under the Atlantic airlines. At present, this figure is Latin America and Africa, Boeing Commercial Airplanes. The
Interoperability Initiative to around 900, majority of whom new position is an expansion of Mounir’s previous role as Vice
Reduce Emissions (AIRE), are Captains. SpiceJet flew more President of Sales for Latin America, which he has held since
an American Airlines Boeing than 4.59 million passengers in November 2008.
767-300 will implement several the last financial year, compared Mike Stolarik to be QinetiQ North America’s
fuel conservation measures, with about 4.50 million in the President and COO
including single-engine taxi on previous year. The airline has 19 QinetiQ North America named Mike Stolarik President and
departure and arrival, continu- aircraft, with nine more on order, Chief Operating Officer. Stolarik is a 30-year industry veteran.
ous climb out and descent, which will join from early next Prior to this appointment, he was president of QinetiQ North
optimised routing over water, year. It operates 117 flights daily America’s Mission Solutions Group.
and tailored arrival into Miami to 18 cities. Patrick Major takes over as VP at SH&E
International Airport. AIRE is SH&E, a subsidiary of ICF International, named Patrick Major
a joint initiative of the Federal GAO report: GPS services Vice President of Flight Operations, Air Carrier Certification,
Aviation Administration (FAA), could deteriorate after 2010 Training and Organizational Development. With over 20 years
the European Commission Global Positioning System of airline certification, flight operations, regulatory compliance,
and several airlines. Following (GPS) service is in danger of management and training experience, Major has been involved
the demonstration flight, FAA severe erosion, according to a in both domestic and foreign government and regulatory affairs.
and American Airlines will report from the Government Flight Display Systems names Kevin Iocovozzi
conduct a two-month trial in Accountability Office (GAO). Gulfstream Program Manager
Miami to continue testing the A Congressional “watchdog” of Flight Display Systems named Kevin Iocovozzi Gulfstream
procedures. programmes and spending of Program Manager. In the new position, Iocovozzi will serve as
“It is critical that the aviation government departments, the a central point of contact for the various Gulfstream OEM and
industry work with our air traffic GAO warns that the satellite Gulfstream Service Center offices.
control partners to demonstrate navigation service could slowly Alain Brunais appointed CFO of FreeFlight Systems
the benefits of NextGen technolo- worsen after 2010, and not FreeFlight Systems, named Alain Brunais Chief Financial Of-
gy today,” stated Bob Reding, Vice recover to acceptable aviation ficer. Brunais has more than 35 years of experience in finance
President of Operations, Ameri- levels before 2022. Normally, and accounting with global corporations, primarily in the
can Airlines. “By implementing the GPS constellation has 24 aerospace industry.
this technology as quickly as satellites to provide worldwide, Satcom Direct names Rob Waterhouse Director of Sales
possible, we can make real and 24x365 navigation. Today, 31 Satcom Direct named Rob Waterhouse Director of Sales. He
meaningful strides to reduce satellites are in orbit, and the will be responsible for sales of Satcom Direct’s portfolio of
our impact on the environment, system has never been better. services, with focus on ViaSat YonderSM Ku-band Mobile
increase system capacity, and However, many satellites are Broadband service and Satcom Direct’s FlightDeck Freedom.
reduce air-traffic delays.” “legacy” units in which the
Jack Nager is VP, Aviation Programs at SRA International
original triple or quadruple
SRA International named Jack Nager Vice President, Avia-
SpiceJet will not renew redundant elements of one or tion Programs, leading the company’s aviation business, and
contracts of foreign pilots more critical systems are now spearheading the company’s plan to broaden its footprint in
In conformity with directions down to or approaching “single air-traffic management systems and services.
from the Directorate General of thread” operation, with total
Civil Aviation (DGCA), SpiceJet failure of individual satellites Chris Swan is StandardAero’s VP/GM in Cincinnati
StandardAero named Chris Swan Vice President/General Man-
will not renew contracts of 55 expected to occur at any time
ager of its Component Services operation in Cincinnati. Prior to
foreign pilots, which are due over the next few years.
joining StandardAero, Swan served in various field service roles
to expire in June, October and Although replacement with GE Aviation.
December. Foreign pilots will satellites are routinely launched,
progressively be replaced with the GAO’s analysis indicates
Indian pilots with consequent that there may be insufficient
benefit of lower manpower cost. satellites in storage to replace Enders believes that the nation- In 2007, Airbus set up an
Currently, expatriate pilots draw the number of potential failures al sentiment notwithstanding, assembly line for the A320
a monthly remuneration of Rs 5 before launches of the next-gen- the company needs to expand family of jets, its most popular
lakh, plus the expenditure on ho- eration GPS III satellites begin. continuously abroad by devel- model, at Tianjin in China
tel accommodation. Indian pilots oping resources and markets to reduce costs and gain a
are paid Rs 3.6 lakh. SpiceJet has : ENGINEERING globally to remain competitive. competitive edge against rival
in all around 250 pilots. In 2005, After its successful endeavour in Boeing in one of the world’s
the government allowed airline Airbus contemplating China, Airbus is contemplating largest aviation markets. The
operators to hire foreign co-pi- production in India development and production in first A320, which undertook its
lots, senior pilots or commanders Chief Executive of Airbus Tom India as also in the US. maiden flight recently, will be
NewsBriefs
panies now flaunt their own aircraft,
with companies arguing that this vital
conveyance saves time and boosts pro-
ductivity. A recent CNN report quoted
delivered at end of June. This tality courses accredited by JET, AI MAY DEFER BOEING 787 DREAMLINER DELIVERIES
is the first time that an Airbus global bodies, thus ensuring
has been assembled outside
Europe.
high standards of education
on a par with world-renowned J et Airways and
Air India, the
two major opera-
India has also made a training institutions. The insti-
tors of Boeing air-
matching proposal to Airbus tute aims to meet the demand
liners in India, are
but there are impediments. for internationally competent considering defer-
Apart from the fear of loss of human resource in the travel ring the deliveries
jobs, the company is in the and tourism industry. All of their Boeing 787
midst of a major restructur- courses are accredited and the Dreamliner orders.
ing programme in the wake of affiliations include the Inter- Jet Airways has or-
slippage in a number of major national Air Transport Asso- dered 10 Boeing
programmes, such as the A380 ciation, the United Federation 787 Dreamliners.
and the A350 XWB. There is, of Travel Agents’ Associations, The new Chairman and Managing Director of state-owned Air
however, increasing pressure the Federation of Freight For- India, Arvind Jadhav, categorically stated that Air India was explor-
to reduce costs further as the warders Associations, DGCA ing other options, including rescheduling, primarily on account of
economic crisis threatens and Amadeus Global. paucity of funds. Financially in dire straits, Air India, which has over
potential orders. The courses are struc- $8 billion (Rs 38,200 crore) worth of planes on order from Boeing,
tured to provide in-depth including 27 B787 Dreamliners, is awaiting a response from the Gov-
Boeing completes understanding and technical ernment of India to its request for financial bailout by way of equity
787 intermediate skills in the fields of Aviation, infusion and soft loans.
gauntlet testing Travel & Tourism, Information
Boeing has completed the Technology and Hospitality.
intermediate gauntlet phase According to Radha Bhatia,
of testing on the first 787 Chairperson, Bird Group, “At $268 million (Rs 1,280 crore) tions, was 161 aircraft, worth
Dreamliner. During the testing, Bird Academy, our vision has for the financial year ending approximately $52 billion (Rs
pilots and engineers simu- been to provide world-class March 31, 2009, admittedly 2,48,310 crore).
lated multiple scenarios using training to aspirants through down 80.4 per cent over last
all airplane systems as if the focused and industry ori- year’s record profits of $1.37 After cutting salaries, Jet
aircraft were in flight, includ- ented courses so as to open billion (Rs 6,540 crore). Rev- Airways retrenches staff
ing power, avionics and flight newer avenues for them in enues rose 9.9 per cent to $12 In the face of falling revenues
controls. Test scenarios ranged the Indian travel and tourism billion (Rs 57,290 crore) from since early 2008 and mounting
from standard flights to single industry. Despite the current $10.95 billion (Rs 52,275 crore) losses, India’s leading private
and multiple systems failures economic scenario, we believe the previous year. Emirates’ carrier Jet Airways handed over
during flights. Intermediate the travel and tourism sector Chairman Sheikh Ahmed also pink slips to 110 employees
gauntlet testing included about has potential for employment reinforced the airline’s plans rather ironically on the eve of
one week’s worth of operations generation provided the right to continue taking delivery of May Day. As per the com-
on the airplane and hundreds talent can be brought to the 18 new aircraft in the coming pany, this step was considered
of discrete test conditions. “The sector through well-equipped year. “We will progress with necessary to cut costs and
team has done an incredible job institutes and trained faculty. our fleet and route expan- improve the financial health
supporting an exhaustive test In this context, our academy is sion plans. With our strong of the company under the dif-
regimen,” said Scott Fancher, fully geared to create a skilled business fundamentals and ficult economic environment.
Vice President and General resource pool for the industry.” track record, we have had no “The airline has issued notices
Manager of the 787 programme. The Bird Group believes this to problems securing financing of termination to identified
“I couldn’t be more proud. We be just the beginning of a long, for our growth. In fact, to date employees on contract, who
will continue to take a hard look illustrious journey further. we have already secured finan- have superannuated. The ter-
at the results, make adjustments cial commitments for over half mination is in accordance with
and finish up our testing so we : AIRLINE of our aircraft deliveries in the the law and service conditions
can get to first flight.” FINANCE coming year.” In 2008-2009, as per the contract,” a company
the airline’s passenger fleet spokesperson clarified. There
: TRAINING Emirates registers profit expanded with the delivery of were 60 probationary cabin-
four Airbus A380s, 10 Boeing crew amongst those laid off.
Bird Academy launches 777-300ERs and six Boeing Last year, the airline had given
training centre In Mumbai 777-200LRs. At the end of the termination notice to around
Bird Group, one of India’s larg- financial year, Emirates’ fleet 1,900 employees, but revoked
est diversified groups in the reached 132 aircraft, including the decision after government
aviation, travel and informa- eight freighters, boasting an intervention and protest.
tion technology arena, has average age of 64 months. At Last week, Jet had cut emolu-
inaugurated its first training the end of the year, the total ments of employees drawing a
centre in Mumbai for spe- Emirates airlines has silenced number of aircraft on Emirates’ gross monthly salary of over Rs
cialised aviation and hospi- sceptics and made a profit of order book, excluding op- 75,000 by up to 25 per cent. SP
Tab on
PR I CE TAG
With the major airports in India now following the PPP route,
there is a need to regulate the charges levied—hence, the
Airport Economic Regulatory Authority
I
N 2004, A PASSENGER PRO- By Raju Srinivasan, ity (AERA). Economic regulatory authorities the
CEEDING for security check at the Coimbatore world over focus on improving the economics
Cochin International Airport was di- of the industry so that the stakeholders, espe-
rected to get an ‘airport ticket’ from cially customers, gain from the regulations. This
a nearby counter. Perplexed, he went includes cost reduction, quality services, the
to the airport counter (distinct from the airline’s checking monetary structures which reflect the costs and striking a balance
counters) and had to cough up Rs 500 as airport fees in between demand and supply. For example, one of the most famous
what was probably the first time in India that a charge, in addition to regulatory authorities in India, the Telecom Regulatory Authority of
the Passenger Service Fee, was levied on international passengers. India, was set up in 1997. Within the first decade of its creation, tele-
The Cochin International Airport was the first Greenfield airport density grew at 18 per cent. The corresponding figure in the 50 years
managed by a Public-Private-Partnership (PPP) and it was an indi- prior its institution had been less than 2 per cent.
cation of the charges levied on a passenger transiting a PPP airport. The aviation industry is among the forerunners that shape the
Today, the User Development Fee is charged to all international and nation’s economy. Airports are strategic infrastructure and their
domestic passengers in Mumbai, Delhi, Hyderabad and Bangalore. stakeholders are the owners of the airport, all the service provid-
PHOTOGRAPH: WIKIMEDIA
Incidentally, Cochin airport has discontinued charging this fee. ers including the airlines, and the passengers who pass through
the terminals. The airport is a multi-faceted firm with two distinct
EVERY PENNY COUNTS sides—the airside, comprising the movements of the aeroplanes
With the major airports in India now following the PPP route, there and services associated with air movements, and the non-airside,
is a need to regulate the charges levied. Therefore, the Indian gov- including the arrival/departure of customers from the terminal by
ernment has instituted the Airport Economic Regulatory Author- surface transport. However, the market value of any airport is re-
HIGHLIGHTS OF EU REGULATIONS
The regulations require airlines to offer assistance and financial compen- Cancellation: The airline must offer a refund (plus repatriation to
sation, if the passenger checked in on time. Various categories apply: one’s home country, if applicable), or alternative transport plus appropri-
• Denied Boarding due to overbooking ate meals, accommodation and communication facilities. In addition, if
• Delays in the flight insufficient notice was given, the denied boarding compensation levels
• Cancellation of the flight may apply.
• Baggage Long Delays: The airline must offer appropriate food, accommodation
• Injury and Death and communication facilities. The relevant delay varies by length of sector:
Denied Boarding: If too many passengers have been booked on a flight, • Two hours for flights up to 1,500 km
the airline must initially seek volunteers to miss the flight. If there are not • Three hours for flights between 1,500 km and 3,500 km outside the
enough volunteers, various levels of compensation apply: EU and for flights over 1,500 km within the EU
• €250 (Rs 16,660) for flights up to 1,500 km • Four hours for flights in excess of 3,500 km
• €400 (Rs 26,650) for flights between 1,500 km and 3,500 km outside the For delays in excess of five hours, the airline must offer to refund the
EU and for flights over 1,500 km within the EU ticket and fly the passenger back to his point of origin, free of charge, if ap-
• €600 (Rs 40,000) for flights in excess of 3,500 km propriate. There are additional compensation levels for damages.
The airline must also offer a refund of the ticket (plus repatriation to Baggage: Claims may be made for damage, loss or delay of baggage, up to
one’s home country, if applicable), or alternative transport plus appropri- a limit of approximately €1,200 (Rs 80,000) if claims are made within seven
ate meals, accommodation and communication facilities. days of the return of damaged baggage or 21 days of delayed baggage. n
A drop SAVED,
Cover Story
a drop GAINED
BREAKING NEW
GROUND:
The CFM56-7B
Evolution engine
enhancement
programme is
scheduled to enter
service in mid-2011 to
coincide with Boeing
Next-Generation
737 airframe
By Joseph Noronha,
PHOTOGRAPHS: WWW.REVISTAAEREA.COM, PRATT & WHITNEY
Goa
S
OMETIME, IN THE NOT TOO distant a future, None of the current alternatives—nuclear power, solar pow-
the Earth’s supply of fossil oil will run out com- er or hydrogen fuel cells—suit jet airliners yet. Even the most
pletely. Long before that it will probably become optimistic among the researchers believe it will take years, if not
uneconomical to extract and refine crude. As decades, for biofuels to make a significant contribution to satis-
power-hungry nations begin frantically searching fying commercial aviation’s insatiable thirst for oil. And biofuels
for alternatives to keep transportation systems come with problems of their own.
running and myriad machines humming, the avi-
ation industry will probably be among the hardest hit. Aviation EFFICIENCY IS THE WATCHWORD
has been heavily oil dependent since the dawn of powered flight. Meanwhile, the rapid increase in airline flights worldwide (bar-
Other industries have managed to reduce their dependence to ring the current global downturn which is temporary) means
some extent, but aviation is as oil-addicted as ever. that aviation’s carbon footprint is expanding. There are several
By Our Staff
Correspondent
I
ILLUSTRATION: RATAN SONAL & PHOTOGRAPH: WWW.WORDPRESS.COM
N 1908, WHEN THE VERY first Model T rolled out of so that the nation and its aviation industry can benefit from
the assembly line, its manufacturer, Henry Ford, had had renewable fuel sources.
the anachronistic vision to design it to run on ethanol
or petrol. His foresight envisaged that ethanol produced WHAT ARE BIOFUELS?
from crops grown on American soil would provide the Biofuels may be defined as solid, liquid or gaseous fuels obtained
bulk of fuel for motor vehicles. Providence and prohibi- from recently dead biological material. In contrast, fossil fuels
tion politics derailed his efforts to produce ethanol or are derived from biological materials which have been dead for
else the history of biofuels would have been vastly different. a long time. Various plants and plant-derived materials are also
A century later, those engaged industriously in endeavours used to make biofuels. The conversion process could be biologi-
to produce biofuels are still far from being able to produce cal, chemical or thermal. Based on the progress of research in the
them at commercially viable costs and quantities. The most realm of biofuels, three generations could be defined. The first
optimistic date for the biofuels industry to take off is at least generation biofuels are produced from sugar, starch, vegetable
two years away. As far as aviation fuels are concerned, it would oil or animal fats using conventional technology. The basic feed-
be futile to try and project target dates for availability of com- stock are often seeds or grains, such as wheat, which yield starch
mercial jet fuel derived from biomass. This article prescribes a that is fermented into bioethanol, or sunflower seeds, which are
strategy to deal with biofuel research and development in India pressed to yield vegetable oil that can be used in biodiesel.
A BOOM That
Never Was
In the aviation
industry, a boom
is not measured
by the number of
aircraft ordered or
airlines launched.
For aviation
ILLUSTRATION: RATAN SONAL & PHOTOGRAPH: WWW.AIRLINERS.NET
to prosper,
traditions have
to be established
and nurtured
through decades,
if not centuries.
A
NALYSING A SUB- for the break provided by Air Deccan.
JECT IN HIND- By S.R. Swarup, While Gopinath pioneered the concept of
SIGHT from an Chennai low-cost airlines in India, his own model
economist’s perch is ultimately failed and he was compelled
a privilege few enjoy. to sell out.
Imagine the sheer Soon after Gopinath’s pioneering step,
gratification of telling everybody how funda- there was a scurry; anybody who was somebody wanted to start
mentally inaccurate they were, how not following the basics actu- an airline. Fabulous pictures were painted of a prosperous Indian
ally resulted in disastrous outcomes; if only you had asked yours middle class eager to embrace air travel; impatience to splurge was
truly for guidance! The present downturn in the aviation industry, created where none existed. Hundreds of aircraft were ordered,
with all its associated convulsions, throws up just such an oppor- press releases made fantastic claims, new airlines were launched,
tunity. To project an insider’s view on the subject was too much traffic created, pilots poached—and revenue models conveniently
to resist. Moreover, in the interest of the aviation fraternity, it was ignored. The big names to join the party were Kingfisher, Para-
imperative that certain issues be put in perspective. mount, SpiceJet, GoAir and Indigo. The celebrations continued.
Aviation in India was revered as a holy cow for over five de- The so-called boom that began in the fourth quarter of 2004
cades, a party to which attendance was by invitation only. The was characterised by extremely low priced tickets—something
protagonists were expected to have either as ridiculous as a rupee. There was a mad rush
family or political connections. Indian Air- by school children to discontinue higher stud-
lines, Air India and Vayudoot, followed by its ies and head abroad to obtain Commercial
new avatar, Alliance, were the only players. En-
try into the charmed circles was well denied to
The Pilot Licence (CPL). Flying and ground train-
ing establishments and air-hostess training
the commoners, with the exception of a few. so-called academies mushroomed across the cities and
Expansion was limited or even unheard of.
Recruitment rare. Inroads were made by a few
boom that towns of India. Unrealistic pay scales induced
even well-placed professionals from other
outsiders like Jet, Sahara, EastWest, NEPC, Da- began in fields to throw up their careers and fly off to
mania, Modiluft and Jagsons, but most could
not stay the course and wound up, some of
2004 was destinations far and wide for a CPL.
Skills, passion or dreams, leave alone com-
them unceremoniously. These fringe players, characterised petence or safety, had little to do with this
nevertheless, did manage to shake things up a
bit. They did add to the capacity.
by extremely new-found passion. The party continued, the
charade painfully maintained. A game of pass-
Several pilots, who were languishing with- low-priced ing–the-parcel began. The first to realise that
out jobs for over a decade, suddenly found
themselves in demand. This was also a period tickets— we were staring at a mirage was Air Sahara’s
Subroto Roy, who said as much. Well, he got
where the public sector giants were shaken something away rather handsomely and Naresh Goel was
out of their cosy, comfort zones. There was,
of course, little to benefit the common man. as ridiculous left straddling the baby, Jet Lite. This also in
a way signaled the beginning of the end. Not
A tacit understanding between all players, as a rupee long afterwards, it was Captain Gopinath’s
public and private, seemed to exist. Ticket turn to get lucky. It is not certain whether the
prices were more or less uniform; the only Captain was smart, lucky or just chanced upon
difference being in the service. Those were Dr Vijay Mallya on one of the latter’s ego trips.
still the days when exorbitant airfares made The rest of course is history.
flying prohibitive and the term Revenue Model was unheard of.
Owning an airline happened to be a fad. To put things in per- WHAT EXACTLY WENT WRONG & WHERE
spective, at least a few of the players were ‘one aircraft’ wonders. Historically, airlines, with the odd exception, were not estab-
One particular airline continued to be so for quite a few years. lished to make a profit. The purpose of establishing an airline
Anyway, bad maintenance, insufficient finances, poor regu- generally has been to show the flag, serve a social purpose,
lation, lack of vision and inefficient management hastened the build a brand or add glamour to an otherwise drab business
demise of most while a couple of resilient ones held on. In their house. Also, once in a while, they pay their bills on time. Anyone
wake, the defunct airlines left behind mountainous debts, shat- who feels otherwise should not only be not running an airline
tered reputations, unemployed pilots and smirking public sec- but also needs to seriously consider getting out of the business
tor players. Few such as Jet Airways and Air Sahara continued of making money. When queried on a popular business channel,
to limp along. The industry then faltered to deceive. The Indian an analyst confessed that given a choice, he would any day pre-
elite class, who were just getting used to some efficiency and fer to fly in an airline rather than buy into its stock.
comfort, were rudely thrown back into the arms of the dreaded Only a few airlines have actually made a profit in the last 50
public sector behemoths. For the record, this rise and fall of the years; due largely to accounting gymnastics and insurance write
aviation industry coincided with the commencement of liberali- offs. The business of running an airline is no different from any
sation and the subsequent hiccups in the Indian economy. other trade. One has a vision, a revenue model, invests capital,
Credit for the current boom in civil aviation is generally at- hires capable people, develops a product, sells it with a margin
tributed to Captain G.R. Gopinath who entered the sector with and makes profit. In the interim, ‘debt obligations’ are fulfilled,
his baby, the Air Deccan. No debate on that certainly. Pilots, cabin even as ‘Risk versus Returns’ and ‘Cashburn’ remain predominant
crew and ground personnel even went vocal with their gratitude and are never lost sight of. The aim of business should be to make
REALITY Check
A variety of factors—ranging from infrastructural bottlenecks to an
inflexible bureaucracy—has long stymied the growth of Indian
business aviation, preventing it from achieving its huge potential.
Now that a stable government is in place in Delhi, hopes have been
raised that systemic shortcomings will be tackled with much-needed
determination. SP’s Chief Special Correspondent Sangeeta Saxena
spoke to industry bigwigs to garner suggestions and opinions on
how best to go about the task.
less of RED-TAPISM’
in sharing the aircraft. All owners want the
aircraft exclusively for themselves and at
their beck and call.
Nigel A. Harwood, SP’s: What are the cost and recurring
CEO, Inter Globe General expenditures involved?
Aviation Private Limited NH: The cost of buying is dependent on the
manufacturing company and, therefore, is
variable. Maintenance, infrastructural re-
quirements for parking, office premises
SP’s Aviation (SP’s): How do you rate and salaries are the recurring costs and
the current business aviation envi- “A corporate flight from these, too, are variable, depending on the
ronment in India? abroad needs nearly 10 days ownership. Of course, the payments to
Nigel A. Harwood (NH): I have always felt authorities in the form of various fees are
that business aviation is a poor relation of to get a clearance to land recurring expenditure, too. I will not be
civil aviation. It’s not promoted well. But it at Delhi and a further one able to give a precise figure. But securing
is growing at a rapid rate of 10 per cent to
15 per cent annually. Hence, it needs a lot
month for a trip to the Taj finance is not difficult. You can get it in dol-
lars or in the Indian rupee at 10 per cent to
of attention from the authorities. Mahal. Which MD or CEO 12 per cent interest rates. It is better to take
can stay in India for so long?” it in the Indian rupee.
SP’s: Enumerate two short and long
term goals each for the business avia- SP’s: What are the key problems be-
tion industry in India. for a trip to the Taj Mahal. Which MD or setting the industry in India?
NH: Short term goals could be to have fixed CEO can stay in India for so long? Even for NH: To name some—parking, drainage,
PHOTOGRAPHS: SP GUIDE PUBNS & CLUB ONE
base operations and create a better job domestic corporate travel the clearances vehicular traffic and allotment of hangars.
market for the locals. We already have 10 take about three days. The other long term We have been fortunate to have an inde-
per cent to 15 per cent jobs in the general goal could be to market the concept of busi- pendent hangar. But the major problem is
aviation sector out of the complete aviation ness aviation to clients of all levels. the absence of fixed base operators (FBOs).
industry in India. We should think of more I am optimistic this problem will get solved.
employment generation. Two most impor- SP’s: Who are your clients? Delhi International Airport Ltd has floated
tant long term goals would be to reduce the NH: HCL, Reliance, Oberoi, Tata, King- a tender to which our company has made
bureaucratic hurdles for general aviation. fisher and the Uttar Pradesh government, a bid in collaboration with Signature Flight
Today, a corporate flight from abroad needs to name a few. We sell and service Hawker Support, a BBA Aviation company and the
nearly 10 days to get a clearance to land at Beechcraft which is in great demand with world’s largest FBO and distribution net-
the airport at Delhi and a further one month the higher echelons. work for business aviation services.
Continued on page 20...
Issue 3 • 2009 • SP’S • 19
BUSINESS AVIATION / EXPERT SPEAK
two years, we are still waiting for steps to
SP’s: How is general aviation differ- industry. Pilots are very sensitive individ- could be lessened. Also, import licensing
ent from civil aviation? uals and their needs have to be addressed should need to be made compatible to
NH: Not much by way of rules and regula- seriously. In business aviation, pilots have the other countries.
tions. Be it medical, legal, safety and mini- very flexible hours and at times very less
mum flying hours—the same norms apply flying in comparison to scheduled air- SP’s: With the UPA back in power, what
to both the sectors. In addition to India’s lines. But they are hired for the complete are the changes one can hope for?
Directorate General of Civil Aviation regula- month, which means they can play golf if NH: I feel economic reforms could be
tions, we follow the European Aviation Safe- there is no flying. beneficial to the aviation sector. Also, I
ty Authority norms, too. Indian companies hope red-tapism becomes a little less.
are happier operating in the country’s busi- SP’s: How would you rate the train-
ness aviation scenario than their foreign ing facilities in India for business SP’s: List the top priorities.
counterparts who get frustrated with the aviation pilots? NH: First is setting up of fixed base op-
bureaucratic hurdles. Believe me, there are NH: There are absolutely no training facili- eration areas in all airports. Second is
much less hurdles in the western world. ties in India for pilots who are sent to the maintaining quality of service, both
training facilities of aircraft manufacturers technical and flying. Third is marketing
SP’s: What are the concerns pertain- abroad. Same applies for helicopters. of corporate aircraft and helicopters to
ing to human capital? businessmen and customising it to their
NH: This can be divided into two catego- SP’s: Which taxes and charges need to needs. Fourth is to create a market in
ries—pilots and other staff. There are no be reconsidered by the government? non-metro cities and among semi-urban
financial concerns, as it is the best paid NH: It would be far easier if custom duties potential buyers. n
‘A huge shortage of
very short sighted. Service tax on charter
services seems odd. Aviation turbine fuel
excise duty also needs to be looked into.
A Stitch In Time
MAMMOTH TASK:
There are around 450 airports
and airstrips in India of which 80
handle commercial operations
W
HEN AN ALERT has lagged behind and does not appear likely
TECHNICIAN DIS- By Our Special to catch up in the near future with the pace of
COVERED pebbles in Correspondent growth of aviation activity. The responsibility
the fuel tank filler neck for laying down the standards of pre-embar-
of a Bell 412 helicopter kation security and anti-sabotage measures
that Anil Ambani was in respect of civil flights at international and
to be flown in the next day, the incident domestic airports in India devolves upon the Bureau of Civil Aviation
(what could have arguably led to an accident) grabbed headlines Security (BCAS), which is attached to the Ministry of Civil Aviation
across the nation. Perhaps the reason for its high visibility was not (MoCA) and is the regulatory authority for civil aviation security. On
so much that an aircraft had been endangered but more because the recommendations of the Pande Committee, constituted in the
of the public figure whose life had been threatened. The episode wake of the hijacking of an Indian Airlines flight in 1976, the BCAS
served to highlight the simple fact that the security on the ground was initially set up in January 1978 as a Cell under the Directorate
and in the air of the steadily increasing number of civil aircraft in General of Civil Aviation. Its role at that time was to coordinate, mon-
Indian skies, is a matter that needs attention. itor, inspect and train personnel in civil aviation security. Following
Growth in aviation is inexorable in spite of the current recession- the Kanishka tragedy in 1987, it was reorganised into an independent
ary trends. Sadly, corresponding growth in security infrastructure department under the MoCA.
FALL IN LINE: Headquartered in Delhi, the BCAS is be recognised even while remedial actions are being initiated.
For security clearance, headed by an officer of the rank of Direc- First, the CISF is woefully inadequate for the task assigned
effort has to be made to tor General of Police designated as the to it. The ASG serves dual function: aviation security at airports
adequately standardise Commissioner of Security, Civil Aviation. as well as on flights, and hassle-free security for the passengers.
processes in India It has four Regional Offices—in Delhi, However, an early morning flight out of any of the metro cit-
Calcutta, Mumbai and Chennai—each ies can hardly be termed pleasant. Having made it in time for
under a Deputy Commissioner of Se- the check-in deadline, the passenger faces a serpentine queue
curity (Civil Aviation) and is responsible for the development, imple- to enter the Security Hold Area (SHA) in which one has to offer
mentation and maintenance of the National Civil Aviation Security the hand baggage for screening, pass through a Door Type Met-
Programme. However, the actual security functions at airports since al Detector and be bodily frisked aided by a Hand Held Metal
the formation of the Bureau were performed by police personnel of Detector. Neither the X-ray machines nor the CISF personnel
the respective state/Union Territory where the airport was located. carrying out the frisking are adequately numbered for the task
This changed after the hijack of the Indian Airlines flight IC-814 in in hand, especially so in the early morning flights and quite fre-
December 1999, after which it was decided that, in order to bring quently at other times of the day, too.
about uniformity in practices and procedures, as also to ensure effec- The CISF obviously
tive control and supervision by the MoCA, airport security should be does not see the need to
entrusted to a single dedicated force instead of different state police hire adequate personnel
forces with divergent work culture and practices. Airports and provide sufficient X-
IDYLLIC SETTING:
VT-GFT ready to fly
Plane Fun
on the Beach
A first-hand account of a scarcely publicised aerofest
that brought alive the Malpe beach in Goa to the
roar and romp of microlights
D
ECEMBER 7, 2008. SIX By Vasuki Prasad what was to unfold very soon. The presence
in the morning. The police of a white Tata Sumo belonging to NAL, with
station at Malpe beach, Manipal something folded on top, and a small skeleton
the most unlikely place auto-rickshaw being pulled behind, all the
from where man could be way from the police station located 500 meter
expected to rise into the air, had two rather away, where it was kept in safe custody, did not draw any atten-
PHOTOGRAPHS: VASUKI PRASAD
unusual but exuberant visitors: Wing Com- tion whatsoever. But that was to change very soon.
mander (Retd) David de Figueiredo and Dr B.R. Pai, who was till On the white soft sand, the Clipper trike, registered VT-
2004 “Flying” Director at Bangalore-based National Aerospace GFT and belonging to NAL, came to life. As the engine revved
Laboratories (NAL) spanning two years. up, the wing was getting its shape. Before long, the structure—
As the orange-yellow sun rose majestically above the coco- consisting of a fuel tank, an engine, a propeller, two seats, three
nut trees, and the tides started receding into the Arabian Sea, wheels and a few yellow bars—was attached to the hang-glid-
little did the people on the beach, save for a handful, suspect ing wing. The trike was ready, as a complete unit. Everyone
IGRUA
India’s largest fully integrated aviation training academy,
Indira Gandhi Rashtriya Uran Akademi boasts of highly
qualified faculty complemented by an impressive training fleet
P
OST THE 1962 DEBACLE, INDIA woke up to Waylaid by bureaucratic lethargy and financial crunch, the recom-
the need of the hour to strengthen its armed forces, mendations remained in cold storage till 1985 when the then Prime
particularly the air force. Consequently, the only Minister, Rajiv Gandhi, himself an airline pilot with remarkable ex-
organised civil pilots training establishment, the perience in the field, transformed this need into reality—and Indira
National Civil Aviation Centre at Allahabad, was Gandhi Rashtriya Uran Akademi (IGRUA) was conceived.
converted to Pilot Training Establishment for the
force. To fill the resultant void in organised and OBJECTIVES
standardised training of civil pilots, the onus fell on flying clubs IGRUA commenced operations in 1986 with the primary objective to
that had to switch from the relaxed club culture of hobby flying to meticulously train pilots for entry into airlines. The institute endeav-
the serious task of training pilots for airline jobs along the lines of ours to carry out LOFT to contemporary international standards.
Line Oriented Flight Training (LOFT). Ill-equipped, with slow, low • CPL course for PPL holders, including foreign nationals.
performance aircraft, like the Pushpaks and Tiger Moths, wielding • Ab initio to CPL course with BSc (Aviation)
basic instrumentation with little or nothing of avionics, and mostly • Licence renewal tests and licence endorsement checks for for-
managed by hobby flying untrained instructors who gave instructions mer students of IGRUA.
without a structured and standard training curriculum, the output • Simulator training course.
was at best suited for securing Private Pilot’s License (PPL). • Multi-engine endorsement course.
Considering that the airlines were modernising and acquiring • Instrument rating course.
newer, bigger, faster and more modern aircraft, it was imperative • Refresher course for Chief Flying Instructor (CFI)/Pilot Instruc-
to bridge the yawning gap in pilot training. Since the standards of tor Incharge (PII) of flying clubs.
flying club protégées fell short of that • Ground training for perspective fly-
required for immediate commence- ing instructors.
ment of an airline carrier, there was • From ab initio to CPL course for for-
an urgent need for institutes to equip eign nationals.
and train civil pilots for streamlined Ab initio to CPL course is con-
seamless transition. ducted on a regular basis. The other
In April 1983, a high level commit- courses are offered on request subject
tee under the aegis of the Ministry of to adequate number of candidates
Tourism and Civil Aviation recom- joining the course.
mended setting up four, and at least Of late, the multi-engine en-
one immediately, which would cater dorsement training is also being
to not just flying but all other industry conducted due to the demand for
requirements multi-engine endorsement for in-
pertaining duction into airlines and manda-
PHOTOGRAPHS: DIAMOND AIRCRAFT & IGRUA
LEAN
Is In
The Indian government is today
exhorting airlines to get “lean
and mean”. Retrenchment,
apparently, is no longer taboo.
G
RIM REALITIES OF THE AVIATION industry seem fuel was not the only cause. Airlines, despite operating in a high
to have finally dawned on those at the helm of affairs. cost environment, were levying unreasonable airport charges,
With the UPA government back in the saddle—and, were generally overstaffed, inordinately lavish with salary struc-
fortunately for the Indian civil aviation industry, Praful tures and offering loads of frills for passengers most of which
Patel picking up the reins again—there is renewed hope. In his were quite unnecessary. Passenger volume was not high enough
recent statements there is evidence of greater understanding of to sustain the number of airlines vying for market share and lack
the gravity of the situation facing the industry. For the first time of infrastructure often degraded efficiency, adding to cost of op-
the minister exhorted airlines to restructure business models and erations. Air fares remained depressed to un-remunerative levels
aim towards “lean and mean” organisations in order to survive. and in the face of fierce competition, airlines appeared diffident
Apparently, even retrenchment of employees, which the gov- and helpless to alter the status quo. Evident to all but the man-
ernment had opposed barely a year ago, is no longer taboo. As if agement of airlines, the business models were somewhat illogical
on cue, Jet Airways recently handed pink slips to 110 employees, and not in tune with the financial paradigms of the industry.
including 60 probationary cabin crew, on the eve of May Day. Last Worse, the government appeared indifferent to the progres-
year, anger and street protests had erupted following retrench- sively worsening plight of the airline industry. Focus seemed to be
ment of 1,900 Jet Airways employees with indications of more to on milking a convenient source of steady income even as the air-
follow. Ironically, the decision was made public even as India Avia- lines bled. Any attempt by the airlines to come to an understand-
tion 2008—the country’s very first trade show related to civil avia- ing to jointly hike fares was perceived by the government as a ploy
tion—was being inaugurated at Begumpet, Hyderabad. Seeking to encourage ‘cartelisation’ and stoutly opposed. Suggestions re-
to quell the uproar, the Minister of Civil Aviation (MoCA) had ini- garding rationalisation of fuel prices and removal of restrictions
tially dismissed it as the airline’s internal matter and maintained on investment by foreign airlines in the industry were repeatedly
that the government really had no role to play. Later, when under rejected. Losses continued to mount. Meanwhile, one airline dis-
mounting opposition Jet Airways backtracked and reinstated the continued operations and three others merged with larger enti-
employees, MoCA claimed it had worked behind the scene to en- ties. The total number of airlines shrank from 11 to seven.
gineer this change of heart. Understandably, with national elec- Just when it seemed matters could not get any worse, global
tions barely a few months away, no political leader could afford economic crisis reared its ugly head in India. Financial woes of
to antagonise any distinctive section of employees, be it in the the airlines worsened, engulfing even major airlines. Air India has
private or public sector. Today, the same political dispensation been pleading with the government for infusion of Rs 15,000 crore
seems more inclined to correct its blinkered vision. for survival. Liquidity issues have compelled the airline to defer
Since the so-called boom in civil aviation began in 2004 driven payment of salary, something unheard of in the industry to date.
by a resurgent economy, business prospects for the airline indus- Private airlines are searching for investors. The international
ILLUSTRATION: RATAN SONAL
try appeared deceptively bright. However, all airlines in India have scene is no better. Over the last one year, as many as 31 airlines
been consistently in the red since then, sinking further into the the world over have had to close down and the CEO of British
abyss as international price of crude touched $147 (Rs 7,000 crore) Airways has asked employees to work for a month without salary.
per barrel in 2008. By the end of the financial year ending March To borrow a quote from US President Barack Obama, “it’s going to
2009, it is believed that all the airlines in India had accumulated get worse before it gets better”. SP
losses totaling to Rs 10,000 crore. Air India was responsible for
around 50 per cent of the total cumulative loss. But the price of —By B.K. Pandey, Bangalore
www.spsmilitaryyearbook.com
www.spsaviation.net
www.spsairbuz.net
www.spslandforces.net
www.spsnavalforces.net
www.spshomelandsecurity.com www.spguidepublications.com
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per aircraft.
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