British Prime Minister David Cameron resigns | Theresa May takes over as new UK PM | May becomes second British woman PM after Margaret Thatcher | Cameron announced resignation following Brexit, a referendum for UK's exit from EU June 23 | International Tribunal demolishes China's claims over South China Sea | Permanent Court of Arbitration at The Hague says China has no legal basis to claim regional waters and build islets | The Tribunal also held China guilty of damaging coral reefs and natural environment | China has border maritime problems with all its neighbours | China rejected the decision, saying it is invalid and has no binding force | India, Tanzania agree to deepen overall defence and security partnership, especially in the maritime domain | Both nations agreed to work closely, bilaterally, regionally and globally to combat twin threats of terrorism, climate change | Prime Minister visiting Tanzania in the last leg of his visit to 4 African nations July 7-11 | Boeing, Mahindra Defence open C-17 Training Centre for IAF | Terrorism is the gravest security threat facing the world today, says PM Modi during Mozambique visit | Terrorism impacts India and Mozambique equally | NASA spacecraft Juno reaches Jupiter | Juno crossed violent radiation and flew 130,000 miles/hour | Jupiter is the largest planet in our solar system | Juno should be in Jpiter orbit for 20 months to send data | The $1.1 billion Juno mission took five years to reach Jupiter | LCA 'Tejas' joins Indian Air Force | Tejas is an indigenously-built Light Combat Aircraft | The single-seat, single-engine, multi-role light fighter is designed by ADA and manufactured by HAL | India test-fires new surface-to-air missile from a defence base in Balasore off Odisha coast | The new missile is jointly developed by India and Israel | Abdul Majeed Al Khoori appointed Acting CEO of the Abu Dhabi Airports | Eng. Mohamed Mubarak Al Mazrouei becomes Advisor to the Abu Dhabi Airports Chairman | Defence Minister Manohar Parrikar hands over 'Varunastra' to Indian Navy | Varunastra is an advanced heavyweight anti-submarine torpedo | It is indigenously designed, developed and manufactured by DRDO | India officially joins Missile Technology Control Regime | With this India becomes 35th member of the MTCR | Indian Foreign Secretary S Jaishankar signed the document of accession into MTCR in Seoul June 27 | The document was signed in presence of Ambassadors of France, the Netherlands and Luxembourg - the Chair and two co-chairs of the Regime | India had applied for the membership in 2015 | India finalises deal for 145 BAE Systems M777 artillery guns | This is Indian Army's first artillery deal in 30 years | Britain votes to leave EU, Pound crashes | 52 per cent voted Leave and 48 Remain in historic referendum | British Prime Minister David Cameron announces to resign before October over UK's exit | Leave process will take about two years though | Markets hit worldwide, including in India | China scuttles India's NSG bid | India joins SCO | India, apart from Pakistan, was admitted as full member of SCO during its Ufa Summit in July 2015 | After completing certain procedures, India now technically entered into SCO | India had an observer status for past 10 years prior to entering into six member regional bloc | No consensus on India's membership in NSG | China and five other countries oppose India's entry as New Delhi has not signed NPT | China insists Pakistan must also enter NSG if India's application is accepted | Pakistan is China's only military ally and is also known as a nuclear, missile and terror proliferator (NMTP) | Indian Space Agency ISRO successfully launches 20 satellites in one rocket | This is the biggest launch in ISRO's history | The satellites were launched onboard PSLV C-34 from SDSC (SHAR) Sriharikota | PSLV C-34 was carrying 17 satellites from US, Canada, Germany, Indonesia and 3 from India | Government of India approves 100% FDI in defence and civil aviation sectors | In defence, foreign investment beyond 49% (and up to 100%) permitted through the government approval route | This is in cases of access to modern technology in the country | For aviation, the government allowed 100% FDI in India-based airlines | The decision on FDI reforms taken at a high-level meeting chaired by Prime Minister Modi | India confident of getting into NSG, says External Affairs Minister Sushma Swaraj | India is working with China to win support | India will not oppose any country's membership proposal, EAM told a news conference |
 

Civil helicopter market and prospects in India

 

 
 
By Lt General (Retd) BS Pawar Published :March 2014
 
     
   

Civil Helicopters extend the reach and expand the capabilities of businesses, city governments and security agencies. The positive impact of civil helicopters for entities that can afford to acquire and operate them remains compelling, though purchases would also have to be weighed against the prevailing economic conditions. The latest survey and forecast of turbine- powered civil helicopter market by ‘Honeywell’ shows improved purchase plans for new helicopters in every region of the world despite the economic slowdown. Similar trend is also indicated in the global helicopter market assessment done by ‘Frost &Sullivan‘, last year.

 

The Global five year demand as per the above surveys is split almost 50-50 between the Americas and rest of the world, involving an increase of almost 5,000-5,500 machines. Latin America and Asia continues to have the highest fleet replacement and expansion expectations and remain the world’s third largest regional market, following North America and Europe. Drivers for these expectations are aircraft age and condition, contractual requirements, change in operational requirements, expiring warranties and regulations requiring twin engines, specifically for off shore operations. This is further supported by the fact that the helicopter usage for corporate sector, energy sector (oil and gas), heli-tourism and training is increasing manifold in these regions making the helicopter a value added asset in the current business environment. However, the fact remains that across the region from the Middle East to Japan, business helicopter use is less common than in Europe and United States.

HELICOPTER MARKET -INDIA

India’s civil aviation market is today among the fastest growing in the world, but despite the positive forecasts illustrated above, the helicopter usage remains very limited and the use of business helicopters continues to lag behind the fixed wing business aircraft. From the time the first civil helicopter was flown in India in November 1953 and up to 1986 the commercial use of helicopters in India was limited to small aviation companies involved in communication and crop spraying. The growth of civil helicopter fleet in the early years was very modest. The formation of the Helicopter Corporation of India in 1986 (Later Pawan Hans Helicopters Ltd), provided the first boost to the civil helicopter industry in India – Pawan Hans now holds and operates the largest fleet in the country. While the numbers had reached 293 by the end of year 2012, the same has seen a decline in the year 2013 due to factors purely related to high cost of operations and regulatory bottlenecks – even though market prospects continued to be positive. Today, there are approximately 266 civil registered helicopters in the country, operating with Non-Schedule Operators, Private Category, Government (central & state) and PSUs. While the Non-Schedule Operators hold the major chunk of helicopters in numbers (200 plus) the balance operate under the category of private and Government/PSU. However, this number is woefully inadequate when compared with the world population of civil helicopters. As per the available data, total world civil helicopter population stands at more than 34,000 with India accounting for less than one per cent. In fact, India currently has fewer civil helicopters than Switzerland. In Brazil, a developing country like ours, the city of Sao Paulo (similar to Bombay & Delhi) itself has about 750 helicopters. However, despite the above statistics, the market and industry remains optimistic on the India helicopter story. This is clearly demonstrated with the establishment of joint ventures in India by helicopter majors like AgustaWestland, Sikorsky and Eurocopter, hoping that local production will give them an edge as they compete to win orders especially in the military segment.

COMMERCIAL PROSPECTS

As per world statistics, 40 per cent of all civil helicopters are being used for corporate business, 29 per cent for emergency medical services and law enforcement, 16 per cent for offshore operations and the balance for other operations like heli-tourism, adventure sports, aerial surveys, etc. This indicates that almost one-third of helicopters worldwide are being used for law enforcement and emergency medical services which is almost non-existent in India. Presently majority of the commercial helicopters available in India are being used in the energy sector, both onshore and offshore. The balance helicopters are employed in communications, corporate use, medical evacuation (air taxi/ambulance), heli- tourism/pilgrimage, elections and other services like survey and pipeline monitoring. Stakeholders are today prepared to commit large investments in offshore exploration and production particularly in deep sea areas so far left untouched. Helicopters form an important and integral part of such operations. In India presently there are 50 plus helicopters employed in the offshore sector on the Western and Eastern coasts. These helicopters account for over 75 per cent of the total civil helicopter flying hours logged in the country. As the exploration moves further offshore, the requirement is for modern helicopters with better range and advanced safety features. Much of the above expected growth will therefore be driven by the burgeoning offshore oil and gas industry, as major obstacles continue to impede the business aviation growth.

TYPES OF HELICOPTERS

The type of helicopters used in the civil market is strongly influenced by the performance criteria of the helicopter in terms of speed, range, safety and reliability, hot/high capability, cabin size and brand experience. Light single engine helicopters continue to be the most popular product class with the highest concentration in North America, with Eurocopter’s EC 130/AS 350, Bell 407, Robinson R-66 and AgustaWestland’s AW109 the most sought after models- many of these models are also operating in India. The next in line are the Intermediate/Medium twin-engine helicopters. The models most commonly seen in this second most popular segment are the AW139, AW169, Bell 412, EC145 and Sikorsky S-76. These types of helicopters are more in demand in the oil and gas arena and are certainly more expensive to operate – this trend is seen worldwide, though the highest concentration of demand is in Asia and Latin America. The heavy twin/multi-engine helicopters have a very small share in civil market and are found mostly in the military domain due to their specialised nature and heavy operational costs. Typical models are Eurocopter’s EC 225, Russian Mi-17 class and Sikorsky’s S-92 with the Russian models dominating the market – a number of civil operators including Pawan Hans have the Mi-171s on their inventory. In fact, the Mi-171 owned by Pawan Hans Limited was involved in a fatal crash in Tawang in Arunachal Pradesh killing the chief minister along with 18 others. As per Honeywell’s survey data of 2013 the population of this class of helicopters declined slightly from the 2012 levels in the civil commercial market. The vast majority of global civil helicopters mentioned above are concentrated in products manufactured by three OEM’s namely Eurocopter, Bell Helicopter and AgustaWestland.

BOTTLENECKS TO GROWTH

With the world market surveys showing a positive growth in India in the coming five years and tremendous commercial prospects existing as seen above, why are the numbers dwindling? The main hurdle is the surfeit of fiscal and regulatory bottlenecks thrust on the operators by the bureaucracy. These are enumerated below.
High Cost of Operations: Mounting cost of aviation turbine fuel (ATF), very high customs duty for import of helicopters/spares and application of fixed wing air traffic rules to helicopters have stymied the growth of civil helicopter industry to a large extent. Add to this the total lack of infrastructure in terms of heliports and helipads and major maintenance hubs and the future of the growth of the civil helicopter industry surely looks dismal and gloomy. While the scope of operations and utilisation for commercial helicopters is vast, the requisite infrastructure is almost non- existent both in the metros and remote areas.

Availability of Pilots and Training Facilities: With the expanding civil helicopter industry the demand for pilots is ever increasing. Presently 80 per cent of pilots and engineers are being provided through the armed forces in terms of Retirees/Premature Retirees. There is a need to boost up the training facilities to get pilots directly from the civil street – though this is easier said than done due to the experience and flying hours required to be built up by these pilots in order to get suitable employment.

Regulatory Bottlenecks: The biggest bottleneck is the applicability of fixed wing operation regulations to helicopter operations. Fortunately, based on the recommendations of the Parliamentary Committee on Aviation the requirement for looking into helicopter operations in a more holistic manner is being pursued but the progress is lethargic to say the least. There is a need for clearing regulatory bottlenecks faced by the industry on a fast track to enhance growth and smooth operations. While some action for having separate corridors for operation of helicopters in Delhi and Mumbai airspace is in progress the pace is again very slow. This is a major step that will help in increasing safety as well as efficiency and capacity for helicopter operations.

CONCLUSION

Despite these bottlenecks, India due to its terrain and vastness is a helicopter country and offers phenomenal potential for usage of civil helicopters for public good. However, for this industry to grow and become viable there is a need to address the various issues affecting the growth of civil helicopter industry on priority by the main stake holders, like the Ministry of Civil Aviation (MOCA), the Director General Civil Aviation and the and the Airports of Authority India, failing which the prospects will remain gloomy, proving all world market surveys wrong.
The MOCA strategy for the civil aviation sector in the next five years includes providing impetus for growth of helicopter industry and this must be implemented with the seriousness it deserves.

 
  © India Strategic  
     
   
 
Top Stories
Prime Minister Narendra Modi Chairs Inter-State Council Meeting
Indian Warships Visit Port Kelang, Malaysia
Japanese Defense Minister Calls on Manohar Parrikar
DRDO Embarks Major Success in Advanced Artillery Gun System
Army Chief Extends Invitation to Australian Special Forces to Train with India
Mhadei Returns after Successful Completion of All Women Expedition
Ex MEGH PRAHAR: A Demonstration on Opposed River Crossing
Aerospace & Defence Executives Hunting down Growth but not at Any Cost, Says KPMG Survey
INS India Celebrates Platinum Jubilee
Indian Navy Commissions INS Karna
Boeing, Mahindra Defence Systems Open C-17 Training Centre for Indian Air Force
Slowly Indian Armed Forces Will See Larger Participation of Women, says Parrikar
Interview: Morocco Could be Hub for Indian Trade to Africa and Europe
FDI Reforms in the Defence Sector: A Fresh Round
Indian Army set to acquire Artillery Guns, Finally
Indian Armed Forces: Pace of Military Modernisation
IAF Inducts Indigenous Tejas Light Combat Aircraft
Made-in-India Jet Fighter: Big Step in Weapons Self-reliance
INS Satpura Reaches Hawaii, US for Exercise RIMPAC 2016
India-Israel MRSAM Successfully Test Fired
 
   
 Home | Contact Us| In the Press| Links| Downloads
© 2008-14, India Strategic. All rights reserved.