Business

A SPACE MARKETING FEATURE

THE EXPRESS GROUP

THE FINANCIAL EXPRESS

A VIATION

FRIDAY, JULY 29, 2011

AVIATION POLICY

IN THE SKY
INDIAS AVIATION INDUSTRY TO GAIN GREATER ALTITUDE WHEN SMALLER CITIES JOIN THE AIR MAP

HIGH UP

HE DOMESTICaviation industry has seen the demand for airplanes,flights and airports growing multi-fold in the last eight years,thanks to liberal government policy in the sector.The industry seems poised for another round of air network expansion to smaller cities.The government is working on strategies to improve air-connectivity within the country to stimulate the demand for air travel. In 2003,Indian carriers operated a total of 122 aircraft and had just two on order.Today,the seven scheduled airlines fly 376 jets and have close to 275 on order. The induction of new airplanes is set to necessitate building of additional airport infrastructure and create a multiplier effect. With the emergence of small magnet towns across India the demand for air travel in these cities is likely to be the focus of the government. A committee has been set up in the ministry to suggest ways for improving air connectivity in the smaller cities,a civil aviation ministry official said adding that a part of the suggestion could be reviving for hundreds of airstrips in the country .The seat capacity by airlines in the country has grown at a compounded annual growth rate of 14% in the last five years,outpacing many countries in the Asia-Pacific region.The total domestic departures have increased to more

than 9,000 per week. We expect air traffic to grow 15% annually over the next four-five years.In the long run the average growth would be 8.5%,Boeing India president Dinesh Keskar said.The American aircraft manufacturer Boeing in its current market outlook (CMO) has said Indian airlines would need 1,320 airplanes valued at $150 billion over the next 20 years till 2030. Domestic scheduled carrier currently have a combined fleet of about 419 aircraft. Non-scheduled air operators fly nearly 360 smaller planes and helicopters. In order to create world-class aviation infrastructure in the country the government has privatised four metro airportsDelhi,Mumbai,Hyderabad and Bangalore.The state-owned Airport Authority of India (AAI) is building the other two major airports in Kolkata and

The government is working on strategies to improve air connectivity to stimulate demand for air travel

Chennai.The total investment in building these airports are estimated at R30,000 crore with the Delhi airport alone accounting for R12,817 crore. The government is looking at building low-cost airports in smaller towns to make air travel accessible to a large section of population.There is an urgent need to develop a dedicated no-frills airport policy for tier- 2/3 cities. Theres also a need to set up an Aviation Infrastructure Development Fund (AIDF) by levying just R10 per domestic passenger and $1 on international passengers. This would create a kitty of upwards of R 200 crore per annum,which can be a vehicle to provide seed capital of up to 20% in tier-2/3 airports. This can be topped up by state level grants,lenders and the investorsown funds to make the airport viable, says Amber Dubey, director (aviation) at global consultancy major KPMG. With the traffic on upswing the government is faced with the challenge of regulating of various aviation related activities and safeguarding consumer interest. The government has set up airport regulator Airports Economic Regulatory Authority of India (AERA) to meet the challenges of privatisation of airports. The aviation ministry has issued a civil aviation rule providing for compensation and facilities to the passengers in case of denied boarding,cancellations and delays.The violation of this CAR is punishable under the provisions of scheduled VI to the Aircraft Rules,1937. The ministry last year also issued separate rule in order to promote fair competition in the airline sector and to ensure that consumers do not receive inaccurate or misleading information on airline services,by strengthening the computer reservation system/global distribution system. In the last few years the government has followed a liberal policy for the aviation sector and has allowed domestic airlines to fly abroad and permitted foreign carriers to fly in by signing bilateral agreements on traffic rights.In the case of some countries like the US the government has followed an open sky policy . With several advantages for passengers as a result of allowing more and more designated carriers to fly in and out of India the government has negotiated more and more seats with foreign countries. In 2010 the civil aviation ministry held bilateral air service consultations with countries like Ireland,Brazil,the UK, Zimbabwe and Indonesia.India today has bilateral air service agreements (ASAs) with most of the UN member nations. The government has meanwhile taken several steps to ensure safe air travel. Keeping in view the security scenario the government has set up four regional offices of the Bureau of Civil Aviation Security (BCAS) at Guwahati,Amritsar, Hyderabad and Ahmedabad airports. The Anti-Hijacking (Amendment) Bill,

2010 has been made stricter with punishment as harsher as death penalty for the offences of hijack of aircrafts. The aviation industry is set to grow fast in the coming years on the back of Indianshigh propensity to travel,rising business sentiment and rapid expansion of the countrys gross domestic product (GDP).This throws several challenges of regulation to the government.The aviation ministry has proposed to revamp the regulatory regime in the aviation sector by setting up a Civil Aviation Authority,an umbrella organisation for monitoring and regulating the dynamic industry . We are in talks with several aviation authorities of the world,including the UK and

the US,to bring best practicesfor the proposed CAA,an official associated with the task of creating the regulatory agency said. The Directorate General of Civil Aviation (DGCA) currently undertakes the regulatory functions related to aerodrome licence,air safety,issuance of pilot licence and investigation of air-misses,crashes and near-misses, among others. The proposed CAA is expected to have more teeth and likely to regulate airfares in case airlines resort to predatory pricing.CAA,said an aviation ministry official,would also appoint ombudsmen to address passenger grievances. Nirbhay Kumar

Business V I A T I O N A
ADVERTORIALS

FRIDAY, JULY 29, 2011

BOMBARDIER

DASSAULT

GULFSTREAM

CESSNA

Falcon 2000S readies for takeoff

he number of millionaires in India is increasing and so is the competition among business jet companies. Each one is trying to grab a big portion of this lucrative pie and leading the pack is Dassault. The company has already made a name for itself as one of the premier companies providing a top class range of business jets. With a presence in over 70 countries around the world, the company is known around the world for its complete line of Falcon business jets. Since the roll out of the first Falcon in 1963, over 2,100 Falcon jets have been delivered to 67 countries worldwide. The family of Falcon jets currently in pro-

duction includes the tri-jets, the Falcon 900LX and the 7X, as well the twin-engine Falcon 2000LX and the new 2000S, which is expected to be certified in the end of 2012 with deliveries beginning in early 2013. The falcon offers unique features that can give its rivals a run for their money . The new Falcon offers an aggressive acquisition price along with low operating costs and an impressive list of standard options.The Falcon 2000S is built on the proven and capable Falcon 2000 platform.Nearly 450 are in service around the world,making it one of the most popular twin engine models in operation.

The Falcon 2000S has the largest cabin interior,leading low speed performance for even greater airport access, optimised operating costs and the greenest footprint. The most noticeable functional development on the 2000S are inboard slats that improve takeoff and make it ideal to land at challenging airports.The jet also features high-Mach blended winglets, a new generation PW308C engine that produces fewer emissions,an entirely new BMW Group DesignworksUSA interior and redesigned cockpit aesthetics along with the next-generation EASy II flight deck.

SKY IS THE LIMIT

I
Fly non-stop A strong presence in India
In India, Bombardier has over 35 aircraft based in the region and its three aircraft families are well represented
which represents over 20% more living space than the cabin of the current industry leader. The fourth cabin can be used as a full bedroom, office or relaxation space. The superior range of 7,300 nm (13,520 km) allows the aircraft to fly from Mumbai to any destination in Asia, Europe or Middle East, as far as Auckland non-stop at M.0.85 with 10 passengers. The Global 8000 will feature a 3zone cabin (63.32-cu.m.) and a very impressive range of 7,900 nm, allowing non-stop travel from Mumbai to the Eastern United States. The new cabin features for both aircraft include maximum natural light through new enlarged windows,a generous baggage suite that is accessible during flight,a crew rest area equipped with reclinable seats and a spacious galley with optimised meal preparation and storage possibilities.The company plans to launch the new Learjet 85 in 2013.

OMBARDIER,a leading aviation and transportation company,has already become a household name in India thanks to its stateof-the-art metro trains running all over Delhi.The company enjoys the same reputation among frequent fliers.Bombardier has a very strong presence in India. The company has over 35 aircraft based in the region and its three aircraft families Learjet,Challenger and Global are well represented. Keeping in mind the growing demand of the aviation sector, the company has launched the Global 7000 and Global 8000 aircraft last year and the two aircraft have received a tremendous response. The Global 7000 will feature a 4-zone cabin (74.67 cu. m.),

N
INTERVIEW
What is your impression of the Indian aviation industry, especially the business jets segment? Business Aviation in India continues to show growth.It still has a large potential.With increasing development and increasing wealth,the requirement for business aviation can only show growth due to a number of factors:connectivity,flexibility and expansion of global business.

AMED AFTERthe current that flows along the coast of Florida, Gulfstream is a premier aviation company providing a range of business jets. Established in the fifties,Gulfstream has today established a strong reputation around the world and has produced some 1,800 aircraft for customers around the world since 1958. The company has a strong presence in India.According to Roger Sperry,Regional Senior Vice President,International Sales,India is an important market for Gulfstream.As businesses continue to flourish,so, too,will the need for aircraft that can quickly,conveniently and safely transport business leaders and employees where they need to go.Because of their

size and capabilities, Gulfstream aircraft are ideally suited to this mission. The share of the market that Gulfstream is capturing in India is about 40% of the long-range business jet market.Between 2001 and 2009,the number of Gulfstream aircraft in India has more than tripled as Gulfstream is becoming increasingly popular especially for business aviation and international travel. The company is all set to strengthen its position in the country and in the time to come is planning to launch new products.The growing fleet of Gulfstream jets in the Indian skies will soon include the all-newnew and much-anticipated G650the largest,fastest, longest-range purpose-built

business jet.Gulfstreams largecabin aircraft,including the G450 and G550,are some of the most popular aircraft in India. The G550 is powered by RollsRoyce BR710 turbofan engines and has a range of 6,750 nm (12,501 km) at Mach 0.80 and a high-speed cruise capability of Mach 0.87.The Gulfstream G450 is a direct descendent of the storied GIV-series of aircraft,the best-selling business jet in the world. One of the most dependable aircraft in its class,the G450 recently received updates to its payload-carrying capability and performance.It can reach a maximum operating speed of Mach 0.88 and carry a team of eight up to 4,350 nautical miles (8,056 km) at its normal cruise speed of Mach 0.80.

TREVOR ESLING
Vice President, International Sales, Cessna Aircraft Company

NIGELHARWOOD,CEO,INTERGLOBEGENERALAVIATION
riety of executive aircraft (including jets,turboprops,helicopters and seaplanes),to luxury yachts (Sail and Motor), top end automobiles (including super sports,classic,track cars, custom built bikes,sports bikes and trikes) to an array of aqua products (mini submarines, diving tools and speed boats). We have scanned the globe to bring the most exceptional products and provide a one stop shop which redefines the ultimate in lifestyle products.We have the Koenigsegg,Gumpert, Deronda in auto segment;Bikes like the Hollisters,Vyrus & Grinnall ;ISA,Messerschmitt, Arcadia,Novatec,Saturn in yachts segment;Hydrolift & Donzi Speedboats. What promotional and brand building activities do you plan to undertake to popularise your luxury brands in India? We have a very aggressive marketing plan which encompasses, events, below the line activities, media engagement, sponsorship, advertising and of course private one on one interaction to promote to our target audience.

We represent the best available in luxury lifestyle

PHOTO COURTESY: COMPANY WEBSITES

InterGlobe General Aviation Private Limited, a subsidiary of InterGlobe Enterprises, has undergone a change in its brand identity and has relaunched to become InterGlobe Established Private Limited. Can you elaborate on this development? Looking at our success over the last four years and the market potential,we broadened our product portfolio to include an array of exclusive products,including Luxury Yachts,Super Sports Cars,Custom Built Bikes and more.Now called THE ESTABLISHED,branded as THE ESTD,our portfolio encompasses all the elements of

Elegance,Style,Thrill and Desire. What products are you offering for the Indian market? How has the response been? We offer our customers a one stop shop for all their luxury lifestyle needs. From Executive Jets to Luxury Yachts, Speed Boats to Sports cars we exclusively represent the best available. The response has been very positive since our launch in March 2011 we have seen a lot of interest, especially on the automotive front, however just re-

cently we have received a number of enquiries for marine products. Can you share with us the specifics of Hawker Beechcraft? Hawker Beechcraft provides the broadest product line available in the market today,meaning there is an aircraft to match all our customers requirements. In terms of value,range,technological innovation and pure comfort Hawker Beechcraft is number one. There are more Hawker Beechcraft aircraft flying in In-

dia today than any other manufacturer,which says a lot! How would you then rate the competition in the business jets segment? What strategies have you devised to stay ahead in the business? As one of the leading aircraft manufacturers in the world, Hawker Beechcraft is ruling the industry with an impressive 60% market share. To ensure we maintain this position; we are constantly looking at our sales and marketing approach. Our USP lies in the fact that our customers trust

us, this is evident in the number of repeat customers. We offer a 360 degree solution from purchase through to delivery and this is key to our success. Youhaveexpandedfromabusinessaviationprovidertoanew onestopshopforluxury lifestylesolutions.Canyouelaborateonthevariousproducts beinglaunchedbythecompany?Whatnewlaunchescanwe expectinthecomingyears,especiallyintheIndianmarket? As I mentioned,our unique portfolio now ranges from a va-

THERE ARE BUREAUCRATIC AND REGULATORY ISSUES THAT ARE NOT VERY FAVOURABLE FOR THE BUSINESS JET MARKET IN INDIA, SUCH AS HIGH IMPORT TAXES AND THE DIFFICULTY OF TRANSFERRING MONEY

N THE EARLYpart of the 20th century,Clyde V Cessna and Victor H Roos,formed a partnership,which led to the creation of Cessna Aircraft Company in 1927.The young aircraft company took the aviation world by storm with the launch of Cessna All Purpose,a monoplane that used a wing without supporting struts or braces. Cut to the present,Cessna has grown into one of the worlds leading aircraft companies,with branches all over the world.Cessna Aircraft Company is the leading designer and manufacturer of light and midsize business jets,utility turboprops and single engine aircraft,having sold and delivered more aircraft than anyone else in history 190,000 and counting. Cessna has now turned its full attention to India,which is one of the worlds fastest growing economy .The company is slowly and steadily making inroads in the Indian aviation sector.There are currently 20 Cessna Citation aircraft operating in India, part of a total fleet of around 100 business jets right now. The company is aiming at a total business jet fleet of 200250 aircraft in India in 10 yearstime. According to Trevor Esling,Vice President,International Sales,Cessna Aircraft Company,India is important to Cessna and the expanding economy should soon support a robust business aircraft fleet and infrastructure.The Indian market has readily accepted both the Citation CJ2+ and the Citation XLS+ as particularly strong aircraft for the sub-continent,alongside the Citation Sovereign.These aircraft offer excellent shortfield capability in hot climates and non-stop capability anywhere within India, so are well-suited to the market.With the Cessna Citation family already well represented in Indias business jet fleet,we expect the latest variant the CJ4 to prove extremely popular with local customers seeking a state-of-the-art blend of performance,comfort and value. Though the company has made elaborate plans for the Indian market and new projects are in the pipeline but there are certain issues which if taken care of can go a long way in fostering a healthy relationship between the Indian aviation industry and foreign companies.

The company is aiming at a total business jet fleet of 200-250 in India in 10 years time
There are bureaucratic and regulatory issues that are not very favourable for the business jet market in India,such as high import taxes and the difficulty of transferring money into and out of the country .These issues are certainly inhibitors to the fast acquisition of aircraft.Furthermore,the limited business aviation infrastructure is currently an impediment to the development of the Indian business jet market,says Trevor. He further adds that, There is a need to increase the number of business aviation airfields and fixed base operations (FBOs) in place, and to ease the restrictions on when aircraft can land.Airports tend to prevent

business jets from landing at peak times and,without FBOs,business jet passengers need to be processed through the same terminal facilities,such as security,as all other passengers.Furthermore,a larger supply of professional aircraft management companies and indigenous pilots will be a key ingredient for further growth. Nonetheless, Trevor is quite optimistic about the future. By 2025 I would expect India to be in the top 10 individual countries for business jet ownership outside the US. On the ground in India, Textron (Cessnas parent company) operates an office in Bangalore, and Cessna also has an Authorized Citation Service Center at nearby Hosur Airport. We are now looking at the possibility of adding another Indian service centre. I should also mention the Textron Global Technology Centre in Bangalore, which consistently works on Cessna development programmes, he signs off on a positive note.

HANDLES ALMOST ANY MISSION, INCLUDING UPSETTING YOUR COMPETITION.

The Citation XLS+ will deliver for you time after time, without a moments regard for the feelings of your competition. Thats the beauty of being a Citation. No remorse. And no excuses. Thats the Cessna way, and the XLS+ is just more proof. It delivers big on range, performance and all-around mission capabilities. Unlike its own competitors, it can take off from shorter runways while carrying more fuel. It flies you farther, with a full-fuel range of nearly 1,900 nautical miles. Add to that its impressive climb performance and more than 440 ktas max-cruise speed, and you have a clutch player that always comes up with the win. As for your competition, well, what about them?

LEARN MORE ABOUT THE JET THAT DELIVERS, TIME AFTER TIME. 000-800-100-3832 | EXPRESS.CESSNA.COM

The Citation XLS+