Professional Documents
Culture Documents
Innovation
Dassaults new Falcon 2000S aims to build on Falcon 2000 legacy p5
A COMMERCIAL FEATURE
Capability
Cessna sees growing demand for small and mid-size planes, plans Citation Latitude p6
xtra insight
Passenger traffic by 2025 is likely to be around 540 million as the fleet size of scheduled airlines increases to 1,500
FANTASY: INDIAN AVIATION IS GOING THROUGH AN OVERHAUL OF SORTS, GIVING PLAYERS A FLIGHT OF FANTASY
digit traffic growth, yet the Centre for Asia Pacific Aviation estimates Indian carriers combined will lose $2.5 billion in the 12 months ending 31-Mar-2012. This is on total revenues of just under $10 billion a worse result even than in FY200809, when traffic was declining and fuel prices spiked at $150/barrel. In the domestic market, Indias airlines lose $25-30 every time a passenger boards an aircraft. This situation has prompted unprecedented intervention by the Prime Minister, who has outlined a 12-point agenda upon which the ministry of civil aviation must report every month. Seven years ago, the total airport traffic was just 48 million passengers, passing through airports that a government committee had declared were for the most part an embarrassment and only 2.5% of traffic was handled at privatised airports. In the domestic arena, lowcost airlines had a market share of just 4% and Air India was the only Indian carrier permitted to operate long-haul international services. FDI up to 49 per cent in domestic airlines is expected to be cleared by the government soon, but foreign airlines are not allowed to pick up stakes in domestic carriers. The governments move to allow FDI in domestic airlines is expected to benefit cash-strapped Kingfisher Airlines. It could also provide a reprieve for the many airlines that are under financial strain and have been looking at raising funds. The move is expected to open the doors for many international carriers too, including British Airways, Air Asia and Singapore Airlines. They plan to leverage the large domestic network of these Indian carriers. Other estimates have placed the current fund needs of the airline sector at $2.5 billion, with Air India alone accounting for $1.32 billion of the total. Analysts say that having a foreign partner will help domestic airlines to raise funds with low interest rates from international markets. Experts say that infusion of foreign capital by international carriers would help in fleet expansion. This (FDI) will alleviate short-term and long-term fund requirements like upgrading their fleet to more fuelefficient aircraft. Besides, equity infusion would also provide comfort to banks that are reluctant to lend, said Rajiv Chib, associate director, aerospace and defence, PricewaterhouseCoopers.
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Comfort
Gulfstream is hopeful about the wide-cabin, highspeed G150 and the large-cabin, longrange G450 p8
NDIA IS POISED TO BE AMONG THE top five aviation nations in the world in the next 10 years. Currently, India is the ninth largest civil aviation market. India Aviation 2012, organised by the ministry of civil aviation in association with Ficci, is into its 3rd edition and will be held from March 14-18, 2012, at Hyderabad. Recent estimates suggest that domestic air traffic will touch 160180 million passengers a year in the next 10 years and international traffic will exceed 80 million passengers a year. The Indian aviation industry is exploring opportunities to improve connectivity and is also looking at enhancing the number of Indian carriers to various countries. The industry entered 2012 facing its most critical challenges since the advent of the 2004 industry reforms. The paradox of Indias airline sector is that it serves one of the worlds fastest growing economies and is posting double-
Versatility
Bombardier is banking on its Learjet 60 XR, Challenger 300 and Global 5000 business jets in India p10
Partnership
UTC is setting standards for performance, reliability and innovation p11