TCS of Canada - India - Aerospace


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TCS of Canada - India - Aerospace

  1. 1. April 2012 Contact: india.commerce@international.gc.caBombardier bullish on Indian market mature markets, the decision makers for such planes arePTI / Hyderabad convinced of the economic value it offers and henceMarch 14, 2012 going for machines that suits their needs. ____________________________________________Canadas Bombardier commercial aircraft and business Indias first pvt airport to come up in Puducherryjet manufacturer has said the Asia- Pacific region, PTI / Coimbatoreincluding China, will take delivery of about 4,000 aircraft March 13, 2012in the 20-to 149-seat category over the next 20 years ofwhich 1,300 will be in India. Indias first 100 per cent private airport is likely to become operational in Karaikal, an enclave of Union TerritoryIndias large land mass, large population and strong Puducherry, in another 24 months.economic performance are driving the growth in thecountrys domestic air travel, which is increasing A top official of the Super Airport Infrastructure Pvt Ltd,proportionately with the development of the countrys the developers, said the Ministry of Civil Aviation hasmiddle-class community, Bombardier said in a statement. given sanction for 14 Greenfield Airports across the country and Karaikal is the only one 100 per cent private"Business aviation in India is experiencing rapid growth. airport among them.Bombardiers latest market forecast for the aviationindustry predicts a total delivery of 1,330 business jets All the other 13 projects cleared were in the Publicdestined for India over the next 20 years," the statement Private Partnership (PPP) mode, J V Chowdhury,said. Chairman, Super Airport said. The airport would come up in 400 acres of land.As demand for business and commercial aircraftcontinues to accelerate within the Asia-Pacific region; Negotiations with investors are going on and would beBombardier Aerospace will demonstrate the growing finalised in six months, he said.importance of this dynamic market at the ThirdInternational Exhibition and Conference on Civil Aviation, A total of Rs. 150 crore ($ 30 mn) was expected for theIndia Aviation 2012, it added. first phase of construction which would include a 1.8 Km runway and a 250 Peak Hour Passenger (PHP) capacityThere will be an impressive display of Bombardiers terminal, The company has also plans to purchaseLearjet 60XR, Challenger 300 and Global 5,000 business another 162 acre of land and expanding the airport laterjets, as well as the Q400 NextGen turboprop. TCS Insights: The airport modernisation programIndia Aviation 2012 biennial show will be open to trade initiated by Ministry of Civil Aviation in 2006 has startedvisitors from March 14 to 16, and open to the public from bearing fruits. A 100% privately owned airport is comingMarch 17 to March 18. up in the erstwhile French colony which attracts large number of foreign tourists year round.TCS Insights: Indian business aviation is insulated fromthe headwinds affecting the civil aviation. Though thenumber of business jets is small as compared to other
  2. 2. The Canadian Trade Commissioner Service Everywhere You Do BusinessAir India to induct Boeing Dreamliner soon 72 Airbus A320neo aircraft that the Mumbai-based airlinePTI / New Delhi has ordered.March 9, 2012 "We selected the Pratt & Whitney engine because we areScotching speculation about further delay in its delivery, confident that it will deliver significant savings in operatingUS aircraft builder Boeing on Friday said the first of the costs, as well as considerable reductions in emissions27 Dreamliner planes ordered by Air India would land in and noise," said Jeh Wadia, managing director, GoAir.Hyderabad next week during an air show. "The PurePower engine is the best long-term solution forHowever, the aircraft is likely to be inducted only in May GoAirs growing fleet," he added.after it gets operational and technical certifications fromthe US Federal Aviation Administration, the Directorate Headquartered in Mumbai, GoAir currently operatesGeneral of Civil Aviation and other agencies. across 21 destinations in India with approximately 160 daily flights.Official sources said the national carrier would induct thisplane, painted in Air India livery, but only by May after the The agreement represents 144 firm PW1100G-JMmandatory certification process was completed. engines and is anticipated to include a maintenance package. Deliveries are scheduled to start in 2016."The super-efficient Boeing-787 Dreamliner is set tomake its debut at Hyderabad as part of Boeings Each Airbus A320neo family aircraft purchased by GoAircommercial products showcase at the 2012 India Aviation will be powered by two PurePower PW1100G-JMAirshow", being held from March 14 to 18, a Boeing engines with benefits including double-digit reductions inspokesperson said, adding that the aircraft was set to fuel burn, environmental emissions, engine noise andland at Begumpet Airport on the eve of the airshow and operating costs when compared with todays engines,remain on static display till March 16. said a statement from Pratt & Whitney.The delivery of the Dreamliner, built of composite TCS Insights: The domestic carriers are optimistic aboutmaterials which Boeing claims would help significantly the growth story of the Indian aviation. Despite thereduce fuel consumption, has been delayed for almost numerous problems plaguing the industry, they arethree years for which Air India has sought a hefty drawing up plans to expand network and induct morecompensation from Boeing. planes to meet the growing demand from domestic fliers. _____________________________________________Facing financial trouble, Air India has decided to sell and Govt to launch process of allowing foreign airlinesleaseback the first seven of the 27 planes it has ordered 49% stake in Indian carriersand is looking for bridge financing worth $230 million. PTI / New Delhi January 18, 2012Under leaseback arrangement, one party sells a propertyto a buyer who immediately leases it back to the seller, Accepting a major demand of the cash-strapped aviationallowing the initial buyer to make full use of the asset industry, the government on Tuesday said it would soonwhile not having capital tied up in it. launch the process to allow foreign airlines 49 per cent stake in Indian carriers.The government is yet to take a call on mode of inductionof all the 27 B-787s Air India has ordered - whether to A meeting between Finance Minister Pranab Mukherjeecurtail the order or leaseback all or purchase some of and Civil Aviation Minister Ajit Singh also decided tothem outright. It also wants the compensation issue to be immediately release Rs 150 crore ($ 30 mn) for paymentsorted out before Air India starts inducting them. of portion of pending salaries and allowances of Air India employees, including pilots.TCS Insights: Despite the problems being faced byIndian air carriers, the industry is optimistic in the long Replying to questions after the 75-minute meeting, Singhterm about the growth of the civil aviation market in India. said "the question was to allow foreign airlines toThis is much evident in Air India announcing its plans to participate in FDI. I discussed it with the Finance Ministerinduct new planes for long distances. and he has agreed. We will bring out a note for the_____________________________________________ Cabinet now."GoAir opts for Pratt & Whitney engines for 72 Airbusaircraft Allowing foreign airlines to pick up stake in Indian carriersIANS / New Delhi would mark a major policy shift. Earlier foreign airlinesFebruary 17, 2012 were not allowed to invest in Indian airlines though foreign direct investment was allowed.The Wadias-promoted low-cost carrier GoAir Wednesdaysaid it has booked engines from Pratt & Whitney, a Asked about the FDI cap on foreign airlines, he saiddivision of US-based United Technologies Corp, for the "49 per cent FDI is already there. The question was to
  3. 3. The Canadian Trade Commissioner Service Everywhere You Do Businessallow (international) airlines to participate in the FDI. The IndiGo to go ahead with fleet expansionCoS (Committee of Secretaries) has also recommended IANS / New Delhithat FDI limit should be raised to 49 per cent." January 11, 2012Singh said FDI was one of the factors which would help Low cost carrier (LCC) IndiGo on Tuesday said athe industry to survive the current financial crisis . "We all possible review of its fleet expansion by the aviationknow that the aviation industry is under a lot of stress." regulator would not hinder the induction plan and it will add 12 aircraft by the end of 2012.On Air India, Singh said Rs 150 crore ($ 30 mn) would be"released soon" to the ailing national carrier. "We will be adding 12 aircraft in the current year. We had a fleet of 48 aircraft in December 2011 and this numberNoting that Air India pilots had recently gone on an will reach 60 aircraft in December 2012," Aditya Ghosh,agitation, he said "the government has decided to release president, IndiGo Airlines, said.sufficient funds to pay at least some part of their wagesand PLI (productivity-linked incentive). The Directorate General of Civil Aviation (DGCA) in its latest financial audit report had rapped the airline forTCS Insights: The Government has finally given in to the flouting mandatory safety norms and said it could reviewdemand of the Indian airline companies to bring in foreign the companys fleet expansion plan.airline companies as partners who could be source offunds for meeting the operational costs and Indian banks "The fast growth induction plan of fleet in the organisationare shy of lending to them. The general consensus also needs to be reviewed in view of the serious findingsamong stake holders is that the present turbulence in the recorded in the audit report," said the watchdog.Indian aviation industry is just for a short time andoptimistic in the long run. According to Ghosh, the companys fleet expansion plan_____________________________________________ would not be hindered by any review.Jet Airways orders 17 Boeing 737BT Online Bureau / New Delhi "Our fleet expansion plan will not be hindered. IndiaJanuary 13, 2012 which has a billion people and around 500 million middle class need more aircraft than 400 (aircraft)."Jet Airways, Indias top private airline, has ordered 17mid-range 737 aircraft from Boeing. "This business requires more aircraft. With only 400 aircraft how can there be over capacity in a country of aThe orders were placed this month, a Boeing official told billion people?"PTI, declining to share further details, saying it is up tothe airline to make an announcement. Earlier, the airline had placed an order for 180 aircraft from Airbus Industries worth $15.6 billion last year.Jet joins a list of worlds top airlines becoming the aircraftmakers customers. IndiGo was also criticised by in the audit for 35 incidents of violations of flight duty time limitation (FDTL) for pilotsRecently, UAE-based Etihad Airways became the largest and cabin crews, and many instances of snags.Dreamliner customer, ordering 10 787-9 Dreamliners andtwo Boeing 777 Freighters in a deal worth $2.8 billion. The company had defended itself by saying the FDTL violation incidents occurred due to reasons such asEmirates placed an order for 50 new Boeing 777s with a weather, traffic congestion and flight diversions.cumulative value of $18 billion, making it the single-largest commercial airplane order in Boeings history by IndiGo is the only profit making airline in the country, withdollar value. a market share of 19.8 per cent in November, 2011.On the other hand, Indias national carrier Air India, which TCS Insights: The only profit making airline in India hashad placed an order for Boeing 787, has decided to put placed order for more planes to expand its network.the aircraft on lease instead of direct purchases taking _____________________________________________into account its large operating losses. The cash- Singapores Changi Airports to buy 26% in GVKstrapped airlines had placed an order for 27 Boeing 787 Airports biz for Rs 2,200 crore ($ 440 mn)Dreamliner, 14 of which are expected to be on its call by Manisha Singhal / ET Bureau2014. December 26, 2011TCS Insights: The confidence in the domestic aviation Singapores Changi Airports is likely to buy a 26%has boosted with the top private airline placing an order stake in GVKs airports business, forming a crucialfor new planes with Boeing. partnership just before bids are to be called for_________________________________________ building a spanking new airport to cater to Mumbais booming traffic.
  4. 4. The Canadian Trade Commissioner Service Everywhere You Do Business partners to bid for tender to build and operate airports atPeople close to the deal said Changi Airports key cities in India.International, a wholly owned subsidiary of Changi Airport _____________________________________________Group, is likely to pay GVK Airport Holdings Private Ajit Singh takes charge of civil aviation ministerLimited Rs 2,000-2,200 crore ( $ 500-550 mn) for the PTI / New Delhi26% stake, valuing the Hyderabad-based companys December 19, 2011airport assets at 8,000 crore ($ 1.6 bn). The valuation andthe deal size are much bigger than GVKs current market A day after being inducted into the Union Cabinet,cap of Rs 1,738.70 crore ( $ 348 mn), which, in turn, is a Rashtriya Lok Dal (RLD) chief Ajit Singh on Monday tookreflection of the tough times being faced by infrastructure charge of the civil aviation ministry, which he describedcompanies such as GVK on the bourses. as a "sensitive" sector."The deal is in the final stages and an announcement is Singh said his assignment is in a sensitive andlikely to be made in January," a person familiar with the challenging sector and he will spell out the roadmap forsituation told ET. Sanjay Reddy, the GVK groups vice- the industry in the coming few days.chairman, said he would not like to comment on marketspeculation. A spokesperson for Changi Airport declined "This is a very sensitive sector and I am taking my time tocomment to an ET questionnaire some time ago. understand it," Singh told reporters at the Rajiv Gandhi Bhavan, the headquarters of the civil aviation ministryThe deal is important for both companies. At one stroke, here.GVK will get a powerful international partner to help itstave off competition from domestic and international The 72-year-old took the charge of the ministry fromrivals when bids for the Navi Mumbai airport are invited Vayalar Ravi, who simultaneously also held the overseassome time next year. The new airport will help decongest Indian affairs portfolio.the existing Mumbai airport. Although GVK secured aright of first refusal in 2005 when it won the bid to develop Singh will have his hands full as the industry is in athe current airport, it will have to match the bid by a rival financial mess due to rising jet fuel prices and highfor the new airport. Changi, with its deep pockets, may interest cost.just be the right partner. Singh, a six-time member of the Lok Sabha, was sworn-inFor Changi, the GVK deal will be a gateway to airports in as cabinet minister Sunday, days after his party joinedtwo of Indias biggest cities, Mumbai and Bangalore. The the ruling United Progressive Alliance (UPA) ahead ofdeal will also free GVK, which has a total debt of over Rs upcoming elections to the Uttar Pradesh assembly.5,000 crore ($ 1bn), from the need to invest in the airportsbusiness. TCS Insights: The compulsion of coalition politics and the upcoming assembly elections in Uttar Pradesh, theTCS Insights: Indian aviation sector is attracting largest state of India, will determine whether theattention of global players including airport developers Congress can come back to power through its coalitionand operators. With the 2006 policy of Indian partners in UPA in the 2014 general elections.Government to invite private players to develop airportsacross India, Indian players are teaming up with foreign ___________________________________________