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SP’s Special
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Looking �����������
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2010
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Trends that manifested themselves SP's Airbuz 01-10 Cover.indd 1 2/25/10 11:28:11 PM
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A
YEAR AND A HALF AGO, India Aviation of aircrew as will as air traffic controllers. Taking stock of
2008, the first air show to exclusively showcase professionalism in the aviation industry, Mahesh Acha-
civil aviation, was held at Hyderabad amidst rya highlights the concept of Crew Resource Manage-
the gloom and distress in the industry in the ment (CRM) training not only for airline operations but
wake of the global economic downturn. However, the for General Aviation as well. Acharya holds that CRM
decision to hold a civil aviation air show—or more ap- training would help improve coordination amongst the
propriately a ‘trade show’ in 2008—as a parallel exercise various elements responsible for the conduct of a flight,
to Aero India, was taken at a time when the Indian civil enhance the probability of correct decision- making
aviation industry was riding an unprecedented boom. and achieve better results through optimisation of in-
This year, the decision to hold the air show was tak- dividual professional capabilities. In the context of per-
en when the industry was still in crisis but event is be- petually heightening threat levels from terrorism, both
ing hosted when it is on the threshold of revival. In this international and domestic, K.B. Menon, writing from
special issue dedicated to India Aviation 2010, analysis Bangalore, directs focus on the issue of airport security.
by SP’s Special Correspondent in the cover story indi- Indeed, all these issues will help enhance safety in air
cates that prospects for the Indian airline industry in operations and in the final analysis, ensure well being of
the year ahead are bright. Writing from Goa, Joseph No- the traveling public.
ronha reinforces this view with a similar hypothesis on Welcome aboard India Aviation 2010 and wish you
the prospects for business aviation, so far a badly ne- many happy landings!
glected sector in India. There are, however, uncertain-
ties and imponderables for both segments of the Indian
civil aviation industry by way of instability in the price
of aviation fuels and the agonisingly tardy pace of infra-
structure development, factors over which the industry
has little control. However, the industry is fighting hard
to bounce back and we at SP’s offer support for and en-
couragement in its endeavour.
While the commercial segment of the industry
strives to get back on track, Joseph Noronha delves on
the imperative need for qualitative change in respect of B.K. Pandey
Air Traffic Management systems through automation Editor
that would significantly enhance situational awareness
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
: AIRLINE investment arm of the Emirate by way of industrial action by its tors, including transportation,”
FINANCE divests most of its 13.4 per cent employees. Unions have threat- said chairman Hochberg at the
stake in SpiceJet totaling to Rs ened to go on strike over changes signing ceremony. “Air India,
Budget Airlines lead industry 170 crore. The off loaded stake is to employees’ contracts and a as one of Ex-Im Bank’s largest
revival believed to have been picked up proposed two-year pay freeze. customers, plays a major role
by domestic mutual funds and in this very important trade
FII. The readiness with which Financial support to Air India relationship,” he added. “Air In-
the shares have changed hands dia acknowledges Ex-Im Bank’s
and the share value reflect the continuing support for the
healthy state of the carrier which acquisition plan that Air India
has been reporting profit. The has undertaken to rejuvenate its
With low-cost airlines leading, the no-frills airline has consistently fleet. This support has enabled
aviation industry emerged from a been in profit in the current Air India to raise finances for
two-year bad patch in 2009. With financial year and by the end of According to the Minister of acquiring these latest state-of-
a growth in air traffic over the this fiscal, it hopes to be out of Civil Aviation Praful Patel, in the the-art technology aircraft at
previous calendar year was 7.8 per the red despite the uncertain forthcoming budget, the govern- competitive rates of interest
cent. Directorate General of Civil state of the airline industry in ment may provide Rs 1,200 as compared to commercial
Aviation statistics reveal that the country. The high level of crore for Air India. The Minister financing. We look forward to
passengers carried by domestic investor confidence reinforces further stated that he expects a continued relationship with
airlines in 2009 totalled 445.13 the viability of the Low Cost the government to pay another Ex-Im Bank on future Boeing
lakh against 412.71 lakh in 2008. Business Model which is fast Rs 800 crore in the near future aircraft financing,” said Air India
The revival dates from July, as gaining ground in the airlines in to enhance equity in the loss Chairman and Managing Direc-
the first six months of 2009 wit- India. The other investors who making airline. He went on to say tor Arvind Jadhav.
nessed a double-digit percentage may come forward with size- that even as equity infusion takes
fall. December saw a whopping able investments are Tatas who place over the next few days, the : ENGINEERING
33 per cent increase with 44.8 are reported to be planning to government expected Air India
lakh domestic fliers against 33.7 increase their stake in the airline to take extraordinary measures AirAsia X - Lufthansa
lakh in December 2008. Jet and as also Wilbur Ross is believed as part of its restructuring exer- Technik Philippines MRO
Kingfisher are operating over 70 to be contemplating picking up cise. His statement came after a AirAsia X has appointed
per cent of their fleet with budget a stake in the budget carrier. meeting of an empowered group Lufthansa Technik Philippines
airlines. The combined market of ministers headed by finance (LTP) as its maintenance, repair
share of IndiGo, SpiceJet, JetLite British Airways reports first minister, Pranab Mukherjee, to and overhaul (MRO) services
and Go Air was 38.5 per cent. This quarterly profit decide on further equity infusion provider for Malaysian carrier’s
figure goes up to 60 per cent after Struggling carrier British Airways’ into the national carrier. fleet of eight Airbus aircraft
adding the combined share of Jet appears to be adapting quickly to which consists of Airbus A330s
Konnect and Kingfisher Red, the the new business realities created US Exim Bank loan to Air India and A340s for three years begin-
budget brands of full service air- by the global recession as evident ning March 2010 at LTP’s facility
lines. Jet Airways and JetLite have from the first quarterly operating in Manila. LTP is a subsidiary
the largest chunk of the market, profit in over a year though mar- of Hamburg-based Lufthansa
cornering over one-fourth of ginal, of $39 million (Rs 180 crore). Technik AG, the largest MRO
the passenger traffic in 2009. The airline however still expects provider in the world and AirA-
Together they accounted for 25.4 to report an annual loss even as sia X is an affiliate of short-haul
per cent of the market, closely an industry-wide slump contin- The National Aviation Company carrier AirAsia, Asia’s leading
followed by Kingfisher with 23.9 ues. British Airways undertook of India Ltd (NACIL), the hold- and largest low-cost airline. LTP
per cent. Air India got 17.5 per a massive cost-cutting campaign ing company for national car- will provide for the first year
cent, IndiGo had 13.9 per cent stressing on the values of austerity rier, Air India, has secured a $1.1 of the contract MRO services
and SpiceJet 12.4 per cent of the and focus on permanent cost billion (Rs 5,000 crore) loan from including four C-checks and a
market. reduction if the airline is to return the Export-Import Bank of the heavy maintenance check. LTP
the business to profitability in the US against a sovereign guaran- will also carry out several cabin
Istithmar Divests Stake in short term. Although the airline tee by the government of India retrofit tasks to comply with
SpiceJet has been able to slash operating for financing sale of Boeing AirAsia X’s new premium and
expenses by 10.5 per cent over the B777-200LRs and B777-300ERs economy seating specifications.
past nine months, it is yet to see to be operated by Air India and In January 2010, an AirAsia X
revenues improving from its usu- B737-800s to be operated by Air A340 successfully underwent a
ally profitable first and business India Charters Ltd. These pur- 40-hour layover involving a main
class service, a segment of busi- chases represent the third phase landing gear seal change at the
ness that was literally crippled of Air India’s 68-aircraft fleet LTP facility in Manila.
by global recession that led to renewal plan. “The fast-grow-
slump in demand for air travel. ing Indian market continues to Boeing’s MRO facility at
In the wake of the financial The airline is however bracing up offer enormous opportunities Nagpur
crisis in Dubai, Istithmar, the to meet the emergent challenge for US exporters in many sec- Boeing Company will start
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
construction of a $100 million (Rs like Airbus A 320 and Boeing 737, created an engine MRO brand
Events Calendar 450 crore) aircraft maintenance, the B-737 Classic and B-737 next called `The A Team’, which has
repair and overhaul (MRO) cen- generation aircraft. It will have a started providing engine repair
AIR CHARTER SAFETY
tre at Nagpur in a joint venture capacity to service between 60 and management solutions to
SYMPOSIUM
March 2 - 3 with state-run carrier, Air India, and 80 aircraft annually. Apart all airline operators of the Gulf
Westfields Marriott, this year, according to Boeing In- from SpiceJet, MAE is also in region to begin with. “The A
Ashburn, Va. dia president, Dinesh Keskar. “We talks with some other operators Team will utilise the existing
www.acsf.aero had deferred the construction of in India, including Jet Airways engine overhaul facilities of Air
the MRO since delivery of the 787 and Kingfisher Airlines, for its India at Mumbai and marketing
INDIA AVIATION 2010 was being deferred,” Keskar said. MAS-GMR Hyderabad Engineer- set up of Aerostar in the Middle
March 3 - 7 “Now, we are on track to deliver ing Company. Meanwhile, MAE is East. This alliance will sell repair
Hyderabad, India the first 787 Dreamliner to Air reported to be in discussions with services for jet engines such as
www.india-aviation.in India by the second quarter of the Transmile Group for acquir- GE CF6-50 & 80 series, P & W
2011.” Air India has ordered 27 of ing the latter’s engineering and 4000 series, GE - 90 series and
FAA AVIATION FORECAST
the twin-aisle, long-haul futuristic maintenance unit. CFM 56-7 series and will also
CONFERENCE
March 9 - 10 aircraft. First deliveries of the cover CFM 56-5 series engine in
Walter E. Washington aircraft were originally scheduled Jet Airways to invest in MAS the near future,” the airlines said
Convention Center, for late 2009. Keskar said that GMR Aero in a release. Besides the MRO,
Washington, D.C. the MRO centre would primarily Air India is also banking on its
www.faa.gov service Air India’s fleet of 787 and air transportation, cargo and
777 planes. According to Keskar, ground handling operations for
EUROPEAN AVIATION Boeing would take about two to revenue generation.
SAFETY SEMINAR two-and-a-half years to construct
March 15 - 17 the centre. He said the centre : OPERATIONS
Hotel Tivoli Liboa, Lisbon, would become operational only Jet Airways India’s largest private
Portugal around 2013, when first mainte- airlines operator announced Asia-Pacific overtakes North
www.flightsafety.org nance operations on the aircraft that its board has approved in America in air travel
AVIATION INDUSTRY would be due. principle to acquire a stake of up According to International Air
EXPO to 26 per cent in Hyderabad-based Transport Association (IATA), Air
March 16 - 18 Malaysia’s MAE wins SpiceJet MAS GMR Aerospace Engineer- travel in the Asia-Pacific region
Las Vegas Convention Center, maintenance contract ing Company Pvt Ltd subject to has overtaken that of North
Las Vegas. receipt of all statutory and regula- America for the first time last
www.aviationindustryexpo.com tory approvals. GMR Aerospace is year. China has now emerged as
a joint venture between Malaysian the world’s strongest single nation
SAFETY FIRST TRAINER Aerospace Engineering SDN BHD aviation market, The Director
March 17 and GMR Hyderabad Internation- General of the International Air
Las Vegas Convention Center, al Airport Ltd, set up to undertake Transport Association, Giovanni
Las Vegas. airframe maintenance, repair and Bisignani, informed a conference
www.nata.aero overhaul activities. Jet Airways in Singapore that the Asia-Pacific
BA-MEETUP Malaysian Aerospace Engineer- had signed an exclusive 10-year region clocked 647 million pas-
March 17 - 19 ing (MAE) Sdn Bhd, a unit of maintenance, repair and overhaul senger journeys last year which
Northolt Airport, London, UK. Malaysia Airlines, has secured a agreement with MAS-GMR Aero- was seven million more than for
www.ba-meetup.com three-year maintenance support space Engineering Company on the North America region, which
contract from SpiceJet for the January 22, 2010. combines the US, Canada and
FIDAE 2010 latter’s new generation Boeing Mexico. According to IATA, the
March 23 - 28 737 series aircraft. The first of Air India’s Gulf MRO for Asia-Pacific region now com-
Arturo Merino Benitez Air- SpiceJets’ B737 jet has arrived at engine overhaul facility mands more than 25 per cent of
port, Santiago, Chile. MAE’s Subang hangar and would the world passenger aviation mar-
www.fidae.cl go through a series of checks. In ket. The region includes Australia
AVIONICS EUROPE 2009 MAE set up the airframe and New Zealand, but not the
March 24 - 25 MRO in joint venture with GMR Middle East. Bisignani has cred-
Passenger Terminal City Hyderabad International Airport ited the accelerated rise of the
Centre, Amsterdam, Ltd on a 50:50 basis. In addition Asia-Pacific market to the global
The Netherlands. to the maintenance contract with financial crisis, which prompted
www.avionics-event.com SpiceJet, MAE has also secured substantial capacity cuts in the
the first airline customer for the Air India has entered into a stra- US. Passenger and cargo traffic
AERODROME INDIA 2010 MAS-GMR Hyderabad Engineer- tegic alliance with the Sharjah- have shown rapid recovery from
April 8 - 10 ing Company Ltd. The Hyderabad based Aerostar Asset Manage- the global financial crisis. He has
Bombay Exhibition Centre, facility will provide base mainte- ment for setting up a marketing also stressed that the Asia-Pacific
Mumbai, India. nance services, starting with ‘C’ joint venture for engine over- region would retain its position as
www.aerodromeindia.com checks for narrow bodied aircraft haul facility. The alliance has the world’s number one market
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
Appointments because of its much higher rate of within a year. Air India admitted
growth in gross domestic prod- that the action of foreign pilots
Didier Lux appoints new Head of Customer Services uct, which is the main driver for had inconvenienced the airline
Didier Lux has been appointed Executive Vice President (EVP) Cus- aviation passenger demand. and passengers. According to
tomer Services and will take up this position on April 1, 2010. Lux is Air India director (engineering)
currently EVP Quality. He will succeed Charles Champion who has Low Cost Carriers (LCC) in and board member, KM Unni,
recently been chosen as EVP Engineering. the Middle East Air India Express services from
Gulfstream appoints Jeff Hill Director of International Following Dubai’s launch of its Karipur were hamstrung as most
Product Support Sales first budget carrier Flydubai, Abu of the pilots were foreigners away
Gulfstream Aerospace Corp., a wholly owned subsidiary of General Dhabi is expected to launch on leave during Christmas. They
Dynamics (NYSE: GD), has named Jeff Hill as Director of Interna- its own in mid-2010, the third could not be substituted as flying
tional Product Support Sales. Hill is based at the Gulfstream service low-cost carrier in the United to Karipur, which is an airport
center at London Luton Airport, United Kingdom. Arab Emirates. The new carrier with a tabletop runway walled
Hawker Beechcraft appoints Justin Firestone President of will compete with Sharjah’s Air in by several hills, requires pilots
Sales for Asia-Pacific Arabia and Dubai’s Flydubai, be- with special licence from the
Hawker Beechcraft Corporation (HBC) has announced the appoint- sides other budget carriers in the Director General of Civil Aviation.
ment of Justin Firestone as President, Asia-Pacific Sales. In this role, Middle East. The eight LCCs es- Admitting that the Air India man-
Firestone will oversee all commercial aircraft sales activities in the tablished over the past six years, agement failed to anticipate such
Asia-Pacific region. are set to perform well in 2010, a crisis, he said that 44 pilots who
Thomas Bommer appointed Director of Sales and given their robust performance went on Christmas leave did not
Marketing , Safi Airways in 2009. Kuwaiti LCC Jazeera resume duty in time. He said the
Safi Airways, the leading international carrier from Afghanistan, Airways has planned acquisitions airline would take up the issue
has announced the appointment of Thomas Bommer as Director of in the first half of 2010, even as with the agency that provided
Sales and Marketing for Afghanistan, UAE and overseas markets. it seeks to expand its network to pilots to Air India.
Gulfstream appoints James Liang as International 82 routes over the next five years.
Distribution Manager in Asia It has already displaced Kuwait : ROTARY WING
Gulfstream Aerospace Corp., a wholly owned subsidiary of General Airways as the largest operator
Dynamics named James Liang as international distribution manager from Kuwait Airport. F Air Arabia Pawan Hans Helicopters
for parts and materials in Asia. He will be based in Hong Kong. has seen its net profit shoot up 21 signs MoU with India Posts
Hawker Beechcraft names Justin Firestone President of per cent in the first half of 2009 Pawan Hans Helicopters Ltd
Sales for Asia-Pacific Region compared to the same period (PHLL), a central government
Hawker Beechcraft Corporation (HBC) has appointed Justin Fires- a year earlier. Air Arabia’s joint undertaking under the ministry
tone as President, Asia-Pacific Sales. In this role, Firestone will over- venture, Air Arabia Egypt is due of civil aviation, has signed on
see all commercial aircraft sales activities in the Asia-Pacific region, for launch in March 2010. Fly- December 21, 2009 a memoran-
reporting to Shawn Vick, HBC executive vice president. Firestone is dubai, which started operations dum of understanding (MoU)
based in the company’s new regional headquarters in Hong Kong. in June 2009 with two Boeing with India Post of the Depart-
Wataniya Airways appoints Lee Shave Chief Commercial 737-800 aircraft, has orders for ment of Posts under the ministry
Officer another 48 Boeing 737-800s. It of communication and infor-
Wataniya Airways, Kuwait’s premium service airline, has announced has launched its tenth destina- mation technology to provide
the appointment of Lee Shave as Chief Commercial Officer. Lee has tion to Kathmandu and Baku, logistics solutions. The MoU will
more than 20 years of expertise in the international aviation sector . the capital of Azerbaijan. Saudi be valid initially for a period of
Chris Bodine named Vice President and General Manager Arabia’s two budget carriers, two years and is renewable on
at StandardAero’s Augusta, Georgia (AGS) Facility Nas Air and Sama Airlines have mutually acceptable terms and
StandardAero has appointed Chris Bodine as Vice President & ambitious expansion plans with conditions. The government,
General Manager of its Augusta, Ga. (AGS) facility. Bodine has been Nas Air currently operating to 11 last week, approved purchase
serving as the facility’s Acting Vice President & General Manager domestic and five international of seven ‘Dauphin’ helicopters
since April 2009. destinations. By the end of the by Pawan Hans for Rs 392.50
Civil Aviation Authority appoints new board member year it plans to extend operations crore. Pawan Hans had on
The Secretary of State for Transport has appointed Gretchen Burrett to 20 destinations and offer more March 4, 2009, signed an MoU
as a member of the Board of the Civil Aviation Authority (CAA). She than 350 weekly services. with France-based Eurocopter
will take over as Group Director, Safety Regulation in April 2010. for seven Dauphin AS- 365 N3
Star Alliance appoints new Vice President Information Foreign Pilots embarrass helicopters. The government
Technology Air India panel on infrastructure has also
Justin Erbacci has been appointed Vice President Information Tech- With the failure of foreign pilots approved additional orders by
nology at Star Alliance. Justin is in charge of the planning, develop- to resume duty on time early Pawan Hans with Eurocopter as
ment and operation of the Star Alliance IT environment, including January after the Christmas vaca- an option that can be exercised
applications, infrastructure, networks and service management. tions and services from Calicut with the state-run firm. These
His profile includes managing operations and service levels with International Airport being acquisitions will enable Pawan
suppliers. As a member of the IT management board, Justin works disrupted because of this reason, Hans to augment capacity for
with the CIOs of the member carriers to develop, coordinate and Air India has apparently decided growth and meet additional re-
implement key IT strategies. to phase out all its foreign pilots quirement of offshore operations.
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
tion with the US and European Navigation Satellite System will Capacity enhancement at
: INDUSTRY aviation corporations, including provide global service from 2010, Bengaluru Airport
Boeing, Snecma, Thales, Messier two years behind the original After 20 months in operation, the
Boeing Commercial Dowty, Liebherr Aerospace and schedule. This was disclosed by dreams of Bengaluru Internation-
Airplanes on target Honeywell. Sukhoi is currently the Russian Premier Vladimir al Airport attaining the stature of
Boeing recorded 481 commer- running Superjet 100 certification Putin after a Proton rocket put a mega world-class airport have
cial airplane deliveries in 2009, tests in line with European, the three Glonass satellites in orbit taken wing. Over the next four
matching the company guid- US and Russian standards, which on December 21, 2009. With to eight years, BIA would be ex-
ance of 480 to 485 airplanes. The would allow the plane to operate this launch, 19 Glonass satellites panded to handle passenger traf-
Commercial Airplanes backlog without restrictions anywhere will have become operational fic of 51 million per annum, from
remains strong at 3,375 airplanes. in the world. According to previ- by the end of 2009. Glonass is its current capacity of a little over
Boeing registered 263 gross and ously announced plans, Sukhoi the Russian equivalent of the 10 million. Global architectural
142 net commercial orders for intends to manufacture at least US Global Positioning System firm HOK has been appointed to
the year as air travel and freight 700 Superjet 100s and expects to (GPS) and is designed for both design the expansion, the plan for
declined and carriers worldwide sell 35 per cent of these to North military and civilian use. Glonass which will be executed in three
experienced severe economic America, 25 per cent to Europe, allows users to identify their phases, with the third phase con-
challenges. The Next-Genera- 10 per cent to Latin America and current location and direction. stituting the building of a second
tion 737 continued its reign as 7 per cent o Russia and China. Another three triple launches are terminal T2. This will initially be
the industry workhorse with It currently has at least 122 firm scheduled for February, August built to handle annual passen-
372 deliveries. The airplane also orders for the Superjet 100. The and November 2010. The aim is ger traffic of around 15 million,
topped Boeing’s order book with launch customers for the aircraft to have 24 operational satellites which would be scaled up to
197 gross orders as carriers chose will be Armenia’s national airline in orbit. The Glonass programme 36 million. A comprehensive
the 737’s efficiency and versatility Armavia and Russia’s flagship air was launched on September 24, landscaping master plan will be
for future fleet needs. The 777 led carrier Aeroflot. 1993. In 2007, Russia and India undertaken on the city side lead-
Boeing’s twin-aisle programmes signed two agreements during ing up to the airport to enhance
as operators chose the most Boeing 787 Dreamliner the then President Putin’s visit passenger experience and do
reliable and efficient twin-aisle jet programme to the country. New Delhi had justice to Bengaluru’s reputation
flying today. The global recession agreed to launch Glonass-M of being a ‘Garden City’.
presided as an oppressive market satellites with the help of Indian
reality in 2009, driving many car- booster rockets and to create : AIR CARGO
riers to re-evaluate their near and new-generation navigation
medium term fleet requirements. satellites. Glonass service is Kingfisher Xpress Air Cargo
The first flight of the 787 Dream- available to India, Kazakhstan, Kingfisher Airlines introduced
liner took place on December 15, Brazil, Nicaragua, and Belarus. its same day door-to-door cargo
2009 with first delivery scheduled delivery service under the banner
for fourth-quarter 2010. The 747- The second Boeing 787 Dream- ATC Systems at IGIA crash of Kingfisher Xpress on February
8 Freighter undertook first flight liner ZA002 completed its first Flight operations at the Indira 02, 2010. Shipments will be picked
on February 8, 2010 with first flight last week with the aircraft Gandhi International (IGI) air- up from the customer’s doorstep
delivery planned for fourth-quar- featuring the livery of the port in Delhi were completely and delivered at the recipient’s
ter of the year. Delivery of the Dreamliner’s launch customer put out of gear on January 14, doorstep on the same day. Accord-
747-8 Intercontinental passenger All Nippon Airways. The aircraft 2010 following the crash of ing to Kingfisher, Kingfisher Xpress
airplane is planned for fourth- took off from Everett completed the Air Traffic Control (ATC) Same Day service will be India’s
quarter 2011. “Year 2009 was not a two-hour flight and landed at systems. Operations were held first and only same day delivery
without its challenges but it also Boeing airfield in Seattle. The up for more than two hours by air service, with a money-back
was a year of exciting achieve- aircraft was flown up to an in the evening as all systems, guarantee. This service will be
ments for our company,” said Jim altitude of 13,000 feet and at including radars and backup available in the six metros - Mum-
Albaugh, Boeing Commercial airspeed of 200 knots or 370 system, failed. All systems were bai, New Delhi, Bengaluru, Hyder-
Airplanes president and chief km per hour. Powered by two finally restored at around 2030 abad, Chennai and Kolkata with
executive officer. Rolls-Royce Trent 1000 engines, hours. Reports indicate that the guaranteed same-day delivery in
this aircraft is the second of six software installed in the ATC up to 18 cities. These cities include
Russian Superjet-100 to be 787s being used in the airplane’s systems had become corrupt. Bengaluru, Chennai, Coimbatore,
delivered by mid 2010 flight-test programme. With The entire system was reloaded Delhi, Kochi, Goa, Guwahati, Hy-
Russia’s Sukhoi Civil Aircraft will each of the airplanes being used and restarted, a process that derabad, Indore, Kolkata, Mumbai,
commence deliveries of its new for a specific set of tests, ZA002 took about three hours. ATC Raipur, Ranchi, Lucknow, Nagpur,
Superjet 100 regional airliner focuses on systems perfor- found it difficult to control Pune and Srinagar. Kingfisher
in the middle of 2010. Training mance. aircraft after the systems crash Xpress will also offer a next-day
for the crews for this plane is as the entire airspace from delivery service across 20 cities in
expected to commence in the : INFRASTRUCTURE Udhampur to Pakistan-Afghani- India. The money back guarantee
near future. The Superjet 100 is a stan border in the west, from reflects the level of confidence in
medium-haul passenger aircraft Glonass global coverage Lucknow to Khajuraho became their capability to deliver on their
developed by Sukhoi in coopera- The Russian Glonass or Global a blind spot. promise. •
KINFISHER
AIRLINES:
Hoping for the
return of good
times in 2010
LOOKING FORWARD
TO 2010
Trends that manifested themselves during the latter half of
2009 need to be studied so as to crystal gaze into 2010
T
PHOTOGRAPH: ABHISHEK / SP GUIDE PUBNS
HE YEAR 2009 By Our Staff Correspondent permanently lost 2.5 years of growth
WAS ONE that the in passenger markets and 3.5 years of
aviation industry growth in the freight business.” The lat-
would like to wipe off ter part of his statement refers to the
its memory. Direc- airlines and other aviation companies
tor General and CEO that folded up, some that did not start
of International Air at all, and the collateral delays in en-
Transport Association (IATA) Giovanni Bisignani is on record terprises that would have been the infrastructure required to
as having stated, “In terms of demand, 2009 goes into history support aviation.
books as the worst year the industry has ever seen. We have So far as airlines are concerned, according to IATA, there
Continued on page 12
Issue 1 • 2010 • SP’S • 9
CIVIL / SHOW PREVIEW
A PEEK at
India Aviation 2010
India Aviation Special
Experts on the civil aviation industry from across the globe will take
part in the conference to be held in Hyderabad from March 3 to 7
F
OLLOWING THE SUC- By Ruchika Chawla as an insight on addressing the current
CESSFUL LAUNCH OF global economic challenges the civil
India Aviation 2008, this aviation industry is facing.
year’s bi-annual event aims India Aviation provides an ideal
to cross new heights for venue for the civil aviation industry to
India’s civil aviation indus- hold conferences, exhibitions, display
try. Being held in Hyderabad, India Aviation products and share knowledge on ways India and its metro-
2010 will once again bring together aviation companies from politan airports can compete with its global counterparts. A
around the world to showcase their products to fulfill the ris- highlight of India Aviation 2010 will be the CEO’s Forum—an
ing number in India’s air transportation. exclusive platform for chief executives of leading companies of
PHOTOGRAPHS: SP GUIDE PUBNS
Highlighting the event will be the Second International the aviation sector to engage in an interactive session with the
Conference on Civil Aviation, jointly organised by the Ministry Minister for Civil Aviation, Praful Patel.
of Civil Aviation and Federation of Indian Chambers of Com- India Aviation will be on from March 3 to 7, 10 am to 6 pm
merce and Industry. Experts on the civil aviation industry from with public days on the concluding two days. The Minister for
across the globe will take part in the conference which will Civil Aviation will inaugurate the event that will be attended
provide a forum for all sectors to debate, discuss and network by senior ministry officers. Later, a dinner hosted by Patel will
on ways to do business in India. The conference is aimed at provide an opportunity for participating aviation sector mem-
providing an outlook for airport businesses worldwide, as well bers to meet and network. SP
Every day the Rolls-Royce name is a welcome sight to more than 650 airlines, including over 40 of the world’s
millions of airline passengers all over the world. For our top 50. We also power 4,000 corporate and utility
customers we provide the most advanced engines aircraft and helicopter operators and 160 armed
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INDUSTRY / ANALYSIS
Continued from page 9
was a 3.5 per cent decline in passenger traffic and a 10 per
cent drop in freight carriage by airlines during the year
2009. It may be pertinent to note that IATA estimates a net
loss of $11 billion (Rs 50,835 crore) for 2009. This figure is
much higher than the average for the last decade which is
about $4.91 billion (Rs 22,690 crore). Much as we would like
to grant 2009 a decent burial here and cast an interroga-
tive look at the portents that indicate what 2010 holds out
for the airline industry in India, the trends that manifested
themselves during the latter half of 2009 need to be studied
so as to crystal gaze into 2010.
According to the figures released by the Airports Au-
thority of India (AAI), domestic air travel market showed
a 20 per cent growth in the second half of 2009 over 2008.
However, as the second half of 2008 itself had witnessed a
sharp fall in demand, this 20 per cent growth actually repre-
sents a rebound only to the 2007 levels. It is estimated that
the Indian aviation industry lost around Rs 10,000 crore
during 2009. However, the last quarter of 2009 brought
forth some good cheer in the form of buoyant results from
India Aviation Special
AIR CARGO
Internationally, air cargo yields are reported to be on the
increase, riding on recovering demand and higher freight
LARGER ROLE COMING UP: load factors. Asian airlines, with greater exposure to air
LCCs in India such as Indigo and cargo markets and benefiting from relatively stronger
Jetlite may contribute stronger
regional economic recovery, report better than average
roles in ferrying growing traffic
performance with just over half of the carriers from the
region reporting air cargo yield increases.
According to the IATA, “Freight load factors have risen
crew and engineers. At the peak of the lay-off period, the Indian to pre-recession levels and, if maintained, should provide the
industry had lost some local talent to foreign carriers. Indian market conditions for some improvement in yields during the
GOING
INTERNATIONAL:
Spice Jet is set to operate
on international routes
year ahead.” Against this backdrop, 2010 promises to be munifi- tum of operations, in some cases grounding/storing or leasing
cent for Indian cargo carriers. While Quik Jet is yet to take off, out aircraft. In addition, there was a general hold back on dis-
Aryan Cargo Express is about to commence operations. Blue cretionary spending, inventories of consumables/spares, and
Dart, in its own quiet and efficient style, marches on profitably. renegotiation of agreements with MROs and parts suppliers.
In a bid to boost revenues, two of the country’s leading airlines Inevitably, the older aircraft were grounded and this affect-
¬Air India and Jet Airways plan to increase cargo operations ed MRO business that much more harshly as older aircraft re-
on international routes. Air India is banking on increasing the quire comparatively more maintenance activity than the new.
belly cargo capacity of its passenger aircraft, while Jet plans to However, 2010 promises to be a year of good hope for MROs in
further boost the business by deploying part of the capacity of general as airlines now look to rebuild their capacity and refit/
its around half-a-dozen leased aircraft which will be returned upgrade aircraft interiors as they adapt to some of the struc-
over the next two years for the air cargo business. tural changes that have taken place over the past two years. As
Air India will be hiving off its air cargo business into an auton- global economy recovers, so should the passenger loads, hence
omous unit by April 1. Jet Airways, which does not have dedicated triggering the business that would come the MRO way from
freighter aircraft, is working on optimising the belly space of its airlines. In an interesting aside, during the Singapore air show
passenger aircraft. Air India Cargo contributes around 8 per cent in early February, majority of the $10 billion (Rs 46,215 crore)
to the total revenues of National Aviation Company of India Lim- deals were not one of aircraft orders, but of MRO, engine and
ited, while Jet Airways is looking at deriving around 9.5 per cent of avionics contracts.
its consolidated revenue from air cargo operations, domestic and Currently, India has very little domestic third party MRO ca-
international in two years time. Thus, 2010 promises to be a great pability, with aircraft either maintained in-house or sent out of
year for air cargo operations for Indian airlines. the region to places like Malaysia and the Middle East. During
2009, Air Works became the first Indian company to receive Eu-
MAINTENANCE, REPAIR & OVERHAUL ropean Aviation Safety Agency (EASA) certification, covering air-
2009 was a hard year for aviation MROs and suppliers of parts frame and component maintenance for 737NGs and Classics and
and components—essentially related to the Original Equip- the ATR family. It already held India’s Directorate General Civil
ment Manufacturers and airlines experiencing fund flow prob- Aviation authority, but EASA certification makes it possible to at-
lems. Almost every airline cut back significantly on the quan- tract aircraft that are on lease to Indian airlines, as lessors typi-
VIGILANT
PRACTICE:
Singapore Airport
makes all attempts
Safe
to follow stringent
security norms
India Aviation Special
How
Are Our Airports?
Airports in India being under constant threat, security demands
complete coordination between all agencies operating at the airport.
Security has to be all pervasive and a collectively committed affair.
By K.B. Menon
Bangalore
A
RE INDIAN AIRPORTS SAFE? NOT ac- viduals presents a high value but soft target to terrorists.
PHOTOGRAPHS: ABHISHEK / SP GUIDE PUBNS
PHOTOGRAPH: ROLLS-ROYCE
over 13 million hours (3 million cycles) in sitions on the Airbus A330
service and accumulates around 180,000 The Rolls-Royce – where they are the clear
service hours every month. Trent 700 powers market leader, as well as
The Trent 700 delivers the power re- the Airbus A330 on the A380, A350XWB and
quirements for all weights of the A330 airliner the Boeing 787 Dreamliner.
and in particular, for the higher weight In fact Rolls-Royce are the
aircraft operating in harsh environ- launch engine on these
ments. This has been demonstrated three new-generation wide body air-
by over a third of all operational expe- craft. The first flight of the 787 Dream-
rience being in the Middle East. With the highest in-service liner aircraft in December last year was powered by Trent 1000
thrust of 72,000 lb, the Trent 700 provides the best take-off engine. Similarly, the A350XWB is powered by the Trent XWB
performance and revenue-earning potential for operators of which is scheduled for test in 2010. •
Airports around the world need to evolve innovative and Profiling has been touted as an effective method of narrow-
varied security measures so that terrorists do not exploit com- ing down the surveillance process but profiling has its oppo-
mon weaknesses. There should be no ‘cookie cutter’ approach nents. They claim that it can lead to racial profiling as had hap-
to security as terrorists can work around them. Some measures pened to some Sikhs travelling in the US, who were offloaded
such as screening of baggage by X-ray machines, CCTV cam- from a flight. Profiling can also lead to a witch-hunt and the op-
eras in passenger areas and aprons, highly visible armed se- ponents claim that its effectiveness remains to be seen. It is also
curity personnel, sniffer dogs to detect explosive and narcotic claimed that terrorists may be trained to go undetected by be-
materials, are available at all airports. Every vehicle entering haviour recognition techniques. Terrorists such as David Cole-
an airport should be captured on film for record. Airports may man Headley disguise their antecedents and transform them-
have hundreds of surveillance cameras but the main problem selves into an acceptable mould. The al-Qaeda has reportedly
is timely extraction of intelligence from the huge mass of infor- trained operatives from different countries so that they are not
mation available. in conformity with any stereotype image of a terrorist.
Slow But
India Aviation Special
Steady
Business aviation has long been the most neglected sector
of the Indian aviation industry. While some constructive
measures have been introduced over the last few years,
these are scarcely enough for the sector to flourish.
2
PHOTOGRAPHS: WWW.HAWKERBEECHCRAFT.COM AND WWW.EMBRAER.COM
LUXURIOUSLY DESIRED:
Falcon 7x, the latest in
Dassault’s inventory has got
considerable scope
of sales in India
Repair and Overhaul facilities to expand safely. But the num- Valley City, the country’s first integrated hill city near Lonavala,
ber of some types of aircraft can be counted on the fingertips, and Mumbai was inaugurated. The project developer, Sahara
so type-rated expertise is in short supply. It is anyone’s guess if India, has set up a state-of-the-art private airport with a 1,200m
maintenance is carried out as laid down or whether shortcuts are runway and an independent ATC. Sahara has tied up with avia-
the norm owing to the scarcity of pilots, engineers, operational tion provider Air One, which will deploy luxuriously-configured
personnel and ground staff throughout the industry. Though the Super King Air B200 aircraft for the service.
slowdown has masked the supply-demand gap to some extent, Air One’s service marks a welcome foray into the luxury travel
the prospects for the next few years are grim. Present training ca- segment. However, business travel has long been seen as exclu-
pacity is far below demand, and general aviation often attracts sively for the wealthy—an impression that the industry needs
only those who cannot secure airline jobs—a phenomenon which to dispel. When Low-Cost Carriers (LCCs) rule the airways and
needs to change. many airlines have dispensed with business and first class seats,
A prime advantage of business aviation is the ability it gives to a new model is necessary if business aviation is not to become
plan a trip and be off, practically at a moment’s notice. Against the increasingly irrelevant. Air Car is, therefore, a worthy attempt
widely held view that executives are hooked on luxury, research to take these services to the masses. It is the closest equivalent
has shown that efficiency and opportunity for doing business— business aviation has to LCCs and fulfils the latent demand for
the elusive quality of time—is the raison d’être for private avia- more understated modes of corporate transport. Launched in
tion. Just as business class airline passengers pay more and are New Delhi in November with the first two of 12 Cirrus SR22 GTS
entitled to better service, it should be appreciated that business turbocharged piston engine planes on order, Air Car claims to be
travel merits different treatment. Quick processing of flight plans 50 per cent cheaper than any air charter currently available over
and speedy transit through terminals are crucial to the success of similar distances. It is priced competitively even against business-
the enterprise. class airline fares. There is, however, a caveat. There should be
enough passengers to fill the three seats. In other words flights
SIGNS OF HOPE will normally operate only at full seat load factor. Air Car will fly to
Recently, the first non-scheduled air service between Aamby destinations either not connected by the airlines or with limited
Advent Of The
AUTOMATED
With ADS-B, a cooperative surveillance and management
technique, pilots and controllers will have similar radar-like
displays containing highly accurate traffic data relayed via
satellite displays that update in real time
PHOTOGRAPHS: ABHISHEK / SP GUIDE PUBNS, WWW.GPC.SE AND WWW.DYNAVTECH.COM
A
IR TRAFFIC MAN- By Joseph Noronha, pilots and controllers will have similar
AGEMENT (ATM) IS radar-like displays containing highly ac-
heading towards its most Goa curate traffic data relayed via satellite
profound transformation displays that update in real time. The
since the introduction of system will also provide pilots with ready
radar surveillance over access to weather services, terrain maps
half a century ago. A few and flight information services. The re-
years hence an airliner getting airborne anywhere in the US sultant improved situational awareness will enable pilots to fly
will be able to fly a straight line track from origin to destina- considerably closer to other aircraft, with vastly enhanced safety.
tion, rather than the extended airway-based routeing it follows And Air Traffic Controllers—some of the most highly-stressed
today. Throughout the journey, pilots will be fully aware of all professionals in the world—can heave a sigh of relief.
aircraft operating in their vicinity and cross them without fear
of collision. Unlike today’s detailed and repetitive voice-based POWERED BY GPS
control system, the entire system will be automatic, with little Airliners are generally required to follow circuitous flight paths
or no ground intervention. so as to maintain safe and orderly traffic patterns. While intermi-
Is this the stuff dreams are made of ? Welcome to the world nably awaiting requisite clearances, they waste much time and
of Automatic Dependent Surveillance-Broadcast (ADS-B). With fuel as they fly holding patterns before landing and burn excess
ADS-B, a cooperative surveillance and management technique, fuel on the ground. Such delays and inefficiencies are often due
The
system will
also provide
pilots with
ready access
to weather
services,
terrain maps
and flight
information
services.
ADS-B Graphical
Representation
ride. On receipt of an automated tip that less turbulent conditions especially in rough weather.
prevail at another altitude, the pilot could hit ‘Accept’ or ‘Reject’. The It may not be all smooth sailing, though. Although ADS-B is
entire flight path can be optimized in this way to provide the great- suitable for surveillance of remote areas where the siting of radars
est possible benefit to the operator, so as to burn minimum fuel and is difficult, some air traffic experts are not yet convinced that it is
generate minimum Greenhouse Gas (GHG) emissions. One minute suitable for use in high traffic volume areas. The ADS-B system
of flight time saved on a Boeing 747 reduces its total fuel consump- does not include ground verification of the accuracy of informa-
tion by approximately 250 litres. This reduces its GHG emissions by tion provided by aircraft. This could have adverse implications for
approximately 750 kg. There will also be significant savings through reliability. There is also concern about the integrity and non-secure
Continuous Descent Approaches (CDAs). CDAs can save 150-250 nature of ADS-B transmissions. ADS-B messages can be intercept-
litres per landing when compared to the traditional step-down land- ed and used to determine the precise location of specific aircraft.
ings. They can also reduce noise emissions by 30 per cent and nitrous There is no way to prevent the inappropriate use of such informa-
oxide emissions by 34 per cent. The overall savings multiplied over tion. Imitation ADS-B messages can be produced with simple low
thousands of flights worldwide each day would be enormous. cost devices. They could be used to spoof the location of phantom
aircraft in order to disrupt safe air travel and create panic. ADS-B is
PROOF OF THE PUDDING dependent on other systems, most notably GPS. If they should fail,
ADS-B equipment has already been installed at a few American what would happen to the entire ADS-B structure? There are also
airports and user trials have taken place over Alaska and other privacy concerns, especially with general aviation operators. Every
regions. The complete ADS-B network will consist of 794 ground single aircraft will be uniquely identifiable—as uniquely as a mobile
stations and support equipment. It is hoped that the system will phone is identified by its International Mobile Equipment Identity
be up and running by 2013. All aircraft operating in American air- number. And it can be continuously tracked.
space should be fitted with ADS-B Out equipment by 2020. Im- Notwithstanding these and other concerns about safety and
plementation will not come cheap. It is estimated that installing security, which the US authorities are in the process of analysing
the ground infrastructure will cost around $20 billion (Rs 92,430 and remedying, ADS-B will enable an exponential increase in air
crore), with a matching sum for airlines as they upgrade their traffic. Apart from its cost-effectiveness, it will probably gener-
planes with new equipment. But there will be welcome savings ate significant fuel and emissions savings for airlines and other
as well. ADS-B enables approaches to be made for any runway, users of US airspace. If it succeeds, it could become the model
without requiring expensive ground-based equipment. Since it is for other air traffic management systems like the proposed Euro-
far more accurate than the radar, it should be possible to decom- pean Single Sky. India’s own GPS Aided Geo Augmented Naviga-
mission approximately half of America’s secondary surveillance tion System is currently designed to assist navigation but could
radars, greatly reducing the cost of managing air traffic. And these conceivably be upgraded to ADS-B equivalence. The worldwide
developments will enable enhanced use of airport infrastruc- deployment of ADS-B could thus greatly enhance the safety and
ture—increasing capacity and efficiency, and improving safety, efficiency of the airways. SP
New Mantra
For Flight Safety
PHOTOGRAPHS: WWW.TODAYSSENIORSNETWORK.COM AND WWW.MONTEREYBAYAVIATION.COM
G
ENESIS IN 1979, accidents indicated that more often
IN THE wake of By Mahesh Acharya, than not, the cause of the disaster lay,
certain findings and Bangalore not in technical failure or poor piloting
re c omm end ation s skills per se, but in the lack of correct,
by the National Aero- coordinated and professional response
nautics and Space by the crew to an extraordinary situa-
Administration (NASA), the concept of Crew tion or unforeseen development. It was observed that lack of
Resource Management (CRM) is widely used today by airlines proper communication amongst the crew generally had delete-
the world over to enhance air safety through improved per- rious effect on teamwork leading to degradation in the quality
formance of and coordination amongst members of the flight of decisions by the commander—a sure recipe for disaster.
crew. NASA research had suggested that human error played
a critical role in air crashes and the contributory factors were EVOLUTION OF CRM
inadequacy of interpersonal communication as well as leader- Based on this concept, in 1981, United Airlines initiated a train-
ship and decision-making in the cockpit. ing programme for its pilots then described as Cockpit Re-
Data milked from Cockpit Voice Recorders retrieved after source Management. Since then, CRM techniques have evolved
PROFESSIONALLY
CHALLANGING:
Need to take right decisions
in aviation cannot be underestimated. Through the concept of Communication and error avoidance was exemplified by
CRM, the trainee pilot can be made aware of how omissions the ATC in Chennai when the ground-based PNB system failed
can affect performance in a multi-crew environment. in November 2009. Controllers could not monitor aircraft be-
yond 60 miles. Information regarding the situation was dissem-
AIR TRAFFIC CONTROLLERS inated to other airports that delayed departures of subsequent
In 2008, a Performance Based Navigation (PBN) procedure flights thus obviating convergence and congestion of traffic in
for Air Traffic Control (ATC) was introduced by the Airports Chennai controlled airspace. This synchronisation helped ease
Authority of India (AAI) at Mumbai, Delhi and Ahmedabad the load on the controllers until normalcy was restored.
airports. The aim was to reduce workload for both pilots and
controllers. To use this system, the Flight Management System FLIGHT DISPATCHERS
(FMS) on board the aircraft should have data for airport of de- CRM training for Flight Dispatchers (FD) is as important as it
parture, en route navigation and arrival airports preloaded. is for pilots. The syllabus for CRM training for FDs as of now is
In the initial stages, AAI trained over 100 staff members on focused on human performance which includes aviation psy-
the PBN system. AAI had also requested the airlines to pro- chology and interpersonal verbal and non-verbal communica-
CAUSE
Cheer
After nearly 15 months of distress, fortunes of the airline industry
for
are once again beginning to soar. Since the last quarter of 2009, all
airlines have been recording healthy load factors.
I
T WAS THE COURAGEOUS VENTURE in August crude and consequently of Aviation Turbine Fuel hitting $147 (Rs
2003 by Captain G.R. Gopinath that transformed the air- 6,700) per barrel, virtually delivered a coup de grace to the finances
line industry in India and brought air travel within the of all airlines. Just when airlines in India and, in fact the world over,
reach of the common man. Not only running a private were coming to terms with the ‘crude shock’ , the global economy
airline was relatively a difficult proposition, Gopinath’s went into a tailspin. In response to the crisis, airlines resorted to
low cost business model for Air Deccan ushered in a drastic measures such as reduction of capacity, deferred delivery
completely new experience in India. Many veterans in of new aircraft, rationalisation of routes by withdrawal from un-
the industry expressed reservations about its viability and, though profitable sectors and large scale retrenchment. All airlines were
reasonably successful in the West, dismissed the concept as irrel- on the brink of collapse as financial institutions were no longer
evant in the Indian context. The argument was based on the fact in a mood to support the industry that had lost credibility and
that the government granted no tax concessions or relief in any had no collaterals to offer. Under pressure to act, the Federation
form to Low Cost Carriers (LCCs). of Indian Airlines (FIA) even served a notice to the government
About two years since the establishment of Air Deccan, four to suspend operations accompanied by a veiled threat to close
more airlines—IndiGo, SpiceJet, GoAir and Indus Airways—en- down private airlines permanently if the government did not lend
tered the fray as LCCs. With Kingfisher Airlines and Paramount a helping hand by way of a bailout package. Unperturbed and im-
Airways emerging on the scene as high quality Full Service Car- pervious to the plight of the airlines, the government delivered a
riers (FSCs), the number of airlines operating in the Indian skies counter threat of “dire consequences”. The demarche by the FIA
rose from four to 11. soon fizzled out.
The market was booming with average annual growth rate be- After nearly 15 months of distress, as signs of revival begin to
tween 20 and 25 per cent. Steeped in optimism, airlines indulged appear in the Indian economy with consequent upsurge in busi-
in unbridled expansion of capacity and network. IndiGo created a ness travel, hopes of upturn in the fortunes of the airline industry
flutter when it placed a single order for 100 Airbus 320 aircraft to are once again beginning to soar. Since the last quarter of 2009, all
be delivered by 2016. Other airlines, too, joined the race for the ac- airlines have been recording healthy load factors and improving
quisition of new aircraft. Competition in the industry was intense yields. As per data from official sources, in December 2009, the
and fares sank to unrealistic levels and FSCs were compelled to number of passengers carried was 33 per cent higher than in the
drop fares to remain competitive. Finances of airlines were under corresponding month the previous year. The figure for January
tremendous strain on account of the high cost of trained, qualified 2010 also has been 23 per cent higher than that for January 2009.
PHOTOGRAPH: ABHISHEK / SP GUIDE PUBNS
and experienced human resource which was in short supply, high Transition from negative growth rate just a year ago to a healthy
airport charges and high tax burden on fuel that constitutes 40 per positive double digit growth regime comes as a pleasant surprise
cent of operating cost. Operating under these adverse conditions, both for the industry and the industry watchers. Quite under-
losses continued to mount and airlines fiddled with their business standably there are apprehensions in the industry about the vola-
models to improve yields hoping to break even within three years of tility of international price of crude and its effect on sustainability
operations. Despite vigorous effort, profitability remained a distant of growth rates and on the long term prospects. However, at this
dream. Upheavals followed as unable to sustain operations, Indus point in time there is cause for cheer as the tide is finally turning
Airways downed shutters, Air Sahara was taken over by Jet Airways in favour of the industry. SP
and Air Deccan was bought off by Kingfisher Airlines.
In 2008, the sudden and steep rise in the international price of —By B.K. Pandey, Bangalore