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TCS of Canada - India - Aerospace

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TCS of Canada - India - Aerospace

TCS of Canada - India - Aerospace


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  • 1. The Canadian Trade Commissioner Service June 2012 Contact: india.commerce@international.gc.ca India NewsWatch: Aerospace Sector India NewsWatch is a package of news articles compiled by the Canadian Trade Commissioner Service (TCS) to help Canadian businesses stay on top of new developments. Look for TCS Insights in blue. Disclaimer: India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients. As such, the opinions and information in the included articles do not reflect the views of the Canadian Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be available only in the language(s) in which it was originally written. AEROSPACEGlobal airlines deploy latest aircraft to woo Indianflyers TCS Insights: Foreign airlines are acknowledging theTNN/ May 1, 2012 importance of the Indian traveler by introducing the latest planes and service offerings. This opens up anThe Indian globe trotter is being wooed like never before. opportunity for Canadian companies that offerThe worlds latest commercial aircraft are now being corresponding services.deployed here by foreign airlines. Japan Airlines (JAL)will use the new Boeing 787 Dreamliner on Delhi-Tokyoroute from Tuesday. Lufthansa will fly the latest avatar of SpiceJet may deploy Q400 planes in southern andthe jumbo jet Boeing 747-800 to Delhi and Bangalore this western Indiasummer. PTI/ May 16, 2012The deliveries of these two aircraft - that boast of features After successfully operating its fleet of new Bombardierlike large windows, ultra comfortable interiors and Q400 planes in south and western India, low cost carrierunmatched fuel efficiency - began to airlines around two SpiceJet is planning to deploy the aircraft to connectmonths back. Request from many airlines, including tourist destinations in north India.Emirates, are pending with the government to fly theAirbus A-380 to Delhi for about two years. "The fleet of new Q400 planes may come to north India and the possible states where it may fly are UttarFor JAL, Delhi will be its Dreamliners second destination. Pradesh, Uttarakhand, Rajasthan, Punjab and Madhya"India is a very important market for us. We have ordered Pradesh," an official associated with the development45 Dreamliners and three have joined our fleet. The first said, refusing to be named.was used on Tokyo-Boston route that started on April 22.The second route will be Delhi." The airline finds the 186- This would help bridge the gap in air connectivity ofseater Boeing 787 perfect for Delhi as it is closer to the places of tourist interest in northern India. It would also beactual demand and filling up the new fuel-efficient plane helpful in expanding the SpiceJets footprints in tier-II andwill be easier. AT present, it flies a 245-seater B-777 to tier III cities of north India, he said.Delhi five times a week. SpiceJet is the first and only airline in India to deployLufthansa, whose request for flying the A-380 to Delhi Q400 aircraft in the country. The Q400 NextGenhas not been cleared, is going to fly the latest jumbo jet turboprop plane can accommodate 78 passengers and isB-747-800 to Delhi and Bangalore from this summer. widely accepted as the best short-haul plane globally."India is the first Asian country where Lufthansa willdeploy B747-800. Lufthansa is the launch customer for The airline has placed an order for 30 such aircraft. It hasthis aircraft, the first of which will connect Frankfurt and already taken delivery of the first seven Q400 NextGenWashington from June 1... New Delhi, Bengaluru, turboprop aircraft from Bombardier of Canada.Chicago and Los Angeles will be added successively,"Lufthansa said. Kalanithi Maran, a media baron-turned airline owner who took over as Chairman of SpiceJet in November 2010Lufthansa (director, south Asia) Axel Hilgers said: "The after buying out American investor and turnaround kingfact that we introduce the best products currently Wilbur Ross, also aims to enhance air connectivity to tier-available on board of our long-haul fleet to India first II and tier-III cities and towns.shows the importance of this market for Lufthansa."
  • 2. The Canadian Trade Commissioner Service Everywhere You Do BusinessIn the first phase of the Q-400 operations, the airline had work in six more at present.connected Hyderabad to 12 popular tier-II and tier-IIIdestinations like Aurangabad, Bhopal, Goa, Indore, In Jharkhand, the state government has already givenMadurai, Mangalore, Nagpur, Pune, Rajahmundry, free land for developing an airport at Deoghar, along withTirupati, Trivandrum and Vijayawada. Rs 50 crore as earnest money. The Planning Commission has also given a matching Rs 50 crore forTCS Insights: Given the saturation of flights between starting work, Agrawal said.major metropolitan centres, airlines are looking at touristdestinations and smaller cities where there is a huge TCS Insights: The Ministry of Civil Aviation’s (AAI) planspotential for air transport. Regional Airport-Holdings to operationalize 225 airports across India will generateInternational Ltd., (RAHI) of Bangalore has developed a lots of opportunities for Canadian airport developers tosmall airport at Gulbarga in Karnataka. RAHI’s plans to participate in the expansion plans.start a regional airline with 20-50 seater planes and isbound to draw attention of established domestic playerswho are also looking at introducing small planes Embraer sees huge potential for executive jets inexclusively for such sectors. This development creates a Indianew market for Canadian small aircraft manufacturers to PTI/May 20, 2012sell their planes to Indian carriers. Brazilian aircraft maker Embraer SA is betting big on the Indian executive jets market, which it expects to accountAAI asks states to prepare plans for setting up new for a bulk of an estimated deliveries worth up to $12airports billion in South Asia in the next 10 years.PTI/May 21, 2012 At present, with 14 of its executive jets in service in India,Aiming to operationalise 225 airports across the country Embraer boasts of commanding over 10 per cent of theby 2020, the Airports Authority of India has asked all state current total fleet of executive/business jets registered ingovernments to prepare plans and create inventory of the country.airports, helipads or even unused airstrips which theywant to develop and upgrade. "Embraer forecasts deliveries of about $205 billion, corresponding to approximately 8,660 units, worth ofIndia has 456 airports and airstrips spread all over, with executive jets to be delivered globally in the next 10many of them built before or during World War II. years. This includes executive aircraft produced by all manufacturers," Jose Eduardo Costas, Vice-President,Developing these non-metro airports to enhance air Marketing and Sales for Embraer Executive Jets - Asiaconnectivity in the hinterland is part of Airports Authority Pacific said.of Indias (AAI) plan to reactivate, upgrade and moderniseat least 225 airports by 2020, way up from 84 airports Of the $205 billion, Asia Pacific is expected to account forwhich are currently operational, AAI Chairman V P $39.8 billion (or 1,363 units), with South Asia receivingAgrawal said. about $10 billion to $12 billion (or 390-485 units) of executive aircraft deliveries, he added.The state governments have been asked to prepareprospective plans to develop airports or helipads in their "We expect India to make up the bulk of the forecastrespective regions, prepare an inventory of airstrips, deliveries for South Asia," Costas said.helipads and airports and forward them to AAI. He, however, did not disclose the companys currentDepending on the traffic density forecast and possibilities orders from India saying it does not comment on orderof non-aeronautical revenue exploitation by using surplus book for executive jets or disclose customer list apartland and connectivity with state capitals, the AAI would from customers who have publicly advised their purchasedevelop airports at these Tier-II and Tier-III cities, he said. of Embraer jets.These works could be taken up either through PPP mode In order to push the sales of its executive jets in India, theor in collaboration between AAI and state governments or company has been tapping select prospective clients tothrough complete privatisation, he said. demonstrate the capability and benefits of its jets.On the two major metro airports it is developing, he said "We are a part of industry organisations like the IBAOthe plush new airport at Chennai is likely to be (Indian Business Aircraft Operators) and support actionsinaugurated next month, while the one at Kolkata would which aim to raise the level of sophistication in the local 2be completed for launch before October. executive aviation industry," Costas said.AAI has already developed 35 non-metro airports and Through such actions, he added, the aim is to "enhancecompleted upgrading of another 21, as it is carrying out the understanding and appreciation of the utility of our
  • 3. The Canadian Trade Commissioner Service Everywhere You Do Businessjets and the profile of this industry not only with official Low cost carrier IndiGo Airlines has tied up with Newbodies, but also the general public." Zealand-based training organisation CTC Aviation Group for training its pilots.Embraer has already named Indamer Pvt Ltd and AirWorks Engineering Pvt Ltd as authorised service "We have chosen to invest in our future Captains toproviders in the country for all operators of Embraer ensure they feel properly equipped for the additionalexecutive jets to support the operations of its customers responsibilities that come with command," IndiGo Vicein the country. President of Flight Operations Saleem Zaheer said, adding, "We wanted to take our pilots out of their normalThe company, however, said realisation of Indias working environment and immerse them in a trainingpotential is challenged by bottlenecks in the infrastructure development programme that fully identifies with theirrequired to support the development and growth of the needs."industry. In line with this dynamic expansion, the company will beTCS Insights: The Indian executive jet market is still in upgrading carefully selected First Officers to commandits infancy as potential customers have yet to understand positions, the company said in a statement today.the full benefits and advantages of owning planes versustravelling commercial. As the market expands, so too will IndiGo currently operates 56 of a total of 280 firm ordersopportunities for companies that build and fit-up these for Airbus A320 aircraft to be delivered by the end ofaircraft. 2025. TCS Insights: Given the growth plans and firm orders for new planes placed by Indian carriers for the next 10 years, it makes business sense to train pilots in-house to control operational costs. This tie-up is a significant pointer for Canadian pilot training companies, as other domestic airlines may also plan to develop talent in-IndiGO ties up with CTC Aviation Group to train pilots house in the long run and would look at foreignPTI/ 28 May, 2012 companies to assist them. For more information on Aerospace Sector consult Aerospace Sector Profile - India http://www.tradecommissioner.gc.ca/India Want to know more? Contact the Aerospace Sector Team in India at india.commerce@international.gc.ca Disclaimer India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients. As such, the opinions and information in the included articles do not reflect the views of the Canadian Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be available only in the language(s) in which it was originally written. 3 3