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India Aviation 2014
Witnesses First Ever Signing of a mega deal

 

 
 
By Jimmy Bhatia Published : April 2014
 
     
   

Hyderabad. The India Aviation Air Show was inaugurated by the Civil Aviation Minister, Ajit Singh, at 1015 hrs on March 12 at the Begumpet airport in Hyderabad, to a packed house comprising exhibitors from over 200 companies – foreign and domestic – officials of the civil aviation ministry and international visitors. Sharing the dais with the minister included the Governor of Andhra Pradesh ES Lakshmi Narasimhan, Ambassador of France to India Francois Richer, Director, US Trade and Development Agency Leocadia I. Zak, FICCI President Sidhartha Birla, Civil Aviation Secretary Ashok Lavasa and others.

 

A significant announcement on the eve of the air show was the permission to foreign airlines to operate Airbus A 380 to India, and Emirates, which brought this big bird here for display, indicated that it would set the process in motion. Details were not available.

Ashok Lavsa in his opening address pointed out though that there was increasing liberalisation and deregulation of the aviation industry, and that with the resulting entry of more and more private players in the civil aviation sector, India has registered a remarkable growth in this sector.

He predicted a year on year growth of 13 per cent in the passenger sector and 10 per cent in air cargo sector in the coming 10 years. This would propel India from the current 9th position to 3rd largest civil aviation market in a decade from now. He also spoke about a slew of measures being taken by the Centre and the state governments. Acquisition of aircraft being made easy by both scheduled and non-scheduled operators, infusion of FDI into civil aviation sector, flexi-use of air space by both the civil and military operators in the country were some of the steps taken by the ministry of civil aviation to spur growth in this sector in the country. Some of the state governments have also pitched in to give boost to air travel in their respective states. For Example West Bengal has reduced VAT on ATF at some select air ports such as Baghdogra etc, within the state to zero percent as an incentive for greater tourism in that part of the state. In addition, some other states are taking pro-active steps to improve intra-state air connectivity.

This year’s ‘Guest Country’ representative, the French Ambassador Francois Ritcher in his address emphasised how the time-tested partnership between the two countries in the aerospace sector is poised to be taken to the next higher level. He stated France is perhaps the only country in the world which not only produces some of the best aircraft in the world but also the engines and the avionics. He applauded the civil aviation ministry for removing the ban on the operation of world’s largest civil aviation aircraft Airbus A380 produced in France and said this would further cement relations between the two countries in the aerospace sector. Incidentally, an Airbus A380, also called the ‘Jolly Giant’ of Emirates Airlines made a first time appearance in Begumpet skies.

The ‘Partner Country’ of this year was represented by the USA whose Trade and Development Agency Director, Locadia I. Zak stressed on how the US-India aviation cooperation programme started eight years ago has blossomed into a full-fledged partnership with both countries sharing a common destiny.

Governor Narasimhan in his address said he was happy to note ‘India Aviation’ had found a permanent home in his state and welcomed all the participating guests. He said more than $90 billion are envisaged to be spent in the civil aviation sector in India in the coming decade and urged all participants to make full use of this opportunity.
Quoting copiously from Wright Brothers to Bernard Shaw, the Civil Aviation Minister, Ajit Singh re-emphasised the robustness of the civil aviation sector in India and said the country was poised to reach a figure of 336 million domestic and 85 million international passengers in the coming decade with the number of airliners rising from the present 400 to 1,000 by the year 2020.

A postage stamp with ‘Special Cover’ was released during the inauguration ceremony to mark the event. But, the toast of the entire ceremony was the official signing of the deal of 42 Boeing 737 MAX aircraft being acquired by the Indian carrier Spice Jet. The deal is worth $4.2 billion (`26,000 crore at current dollar/rupee exchange rate) and created history by being the first such deal ever to be inked during the India Aviation Show. Ajit Singh later visited the exhibition halls with his entourage while the otherwise meager air display had a daredevil pair of British champions Mark Jefferies and Tom Cassels of the UK-based Global Stars Aerobatic team enthralling the spectators with their aerial stunts. On static display were close to 20 aircraft including the Boeing 787 Dreamliner at one end. But the business jets and other smaller aircraft were obviously dwarfed by the magnificent Airbus A380 at the opposite end.

A LOT OF BONHOMIE AND SOME DEALS

The subsequent days witnessed a lot of interaction at all levels, including a well-attended seminar on the second day with focus on boosting regional connectivity. It was stated that country-wide 50 additional airports have been identified for low-cost development to bring these on the civil aviation map of India. That India has the potential to become the third largest aviation market by 2020 and the largest by 2030 was also echoed by the FICCI-KPMG combined in their report ‘Indian Aviation 2014’ report launched by them during the Show.

According to the report, the Indian civil aviation industry is on a high growth trajectory, albeit with minor hiccups. The industry has ushered in a new wave of expansion driven by ‘Low Cost Carriers’ (LCC), modern airports, ‘Foreign Direct Investments’ (FDI) in domestic airlines, cutting-edge ‘Information Technology’ (IT) interventions and a growing emphasis on ‘No-Frills Airports’ (NFA) and regional connectivity.

However, the report noted that a lot more needs to be done, as several Tier 2/3 cities are still unconnected or underserved. Corrective measures to be adopted involve relaxation on regulations, revising the security requirements, allowing domestic code sharing, providing free or discounted utilities and connecting infrastructure. In this context, the proposed ‘Essential Air Services Fund’ (EASF) by Ministry of Civil Aviation (MoCA) needs to be set up immediately.

Air Works India Engineering Pvt. Ltd, India’s leading third party MRO company signed some important contracts during the show. In a first overseas win for any General Aviation MRO in India, ‘Air Works’ was appointed by Dana Executive Jets, a private jet charter and aircraft management company wholly owned by the Government of Ras Al Khaimah, UAE, to provide maintenance support for line and base maintenance for its fleet of aircraft. In another contract, it signed an agreement with EMTEQ, a global aerospace company. With this agreement, Air Works will now make it easier for EMTEQ’s products to be available to operators across India.

Another feather in the Air Works’ cap was the signing of a Memorandum of Understanding (MoU) with Embraer Executive Jets for it to provide full maintenance support to the Legacy 500 and Legacy 450 customers in India.The agreement has come ahead of the Legacy 500 mid-size jet’s entry into service in the first half of 2014. The Legacy 450 mid-light jet’s certification is expected by mid-2015.

CONCLUSION

After the first three so-called business days, the show was thrown open to the general public on March 15 and 16, which came in throngs to see the stalls and the dare-devilry of the British stunt pilots. The show ended on high hopes of continuous growth of civil aviation sector in India with much greater business opportunities in the coming years. The next ‘India Aviation’ show has been fixed to be held from March 16 to 20, 2016.

 
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