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Special
Issue
An SP Guide PublicAtion
SP’s
News Flies. We Gather Intelligence. Every Month. From India.
Aviation
www.spsaviation.net OctOber • 2011
+
❚ B usiness Jet Ownership
❚ R egional Jets
❚ E-Jets & Competition
IAF
in
TRANSFORMATION
As IAF celebrAtes Its 79th AnnIversAry, It Is tIme to tAke stock oF Its
AchIevements And AnAlyse the pAce oF Its modernIsAtIon eFForts to
keep Its tryst wIth destIny to be A world clAss AersopAce power
79
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SP’s An SP Guide PublicAtion
TaBle of ConTenTs news Flies. We Gather Intelligence. Every month. From India.
Aviation
Issue 10 • 2011
29 Capability Analysis
The IAF has comprehensive plans to not only regain but augment its force levels, A Credible Balance
but the slow pace at which these are fructifying is the biggest worry. 31 Power Projection
On the Rise
34 Fighters
Procure & Refurbish
36 MMRCA
Looking Beyond
38 Transport
The Balancing Act
41 Helicopters
Depleting Numbers
44 Training
Coming Soon
46 Space
Protecting Space
48 Air defence
Defending India’s Airspace
50 unmanned
Powered Aerial Vehicles
52 electronic Warfare
War without Weapons
54 upgrades
CIVIl Improve & Induct
6 Business Aviation IAF Special 56 Viewpoint
It’s All Rosy Re-engining Jaguar
10 Business Aviation 57 Infrastructure
Filling The Gap IAF In TrAnsFormATIon A Welcome Step
11 Regional Aviation As IAF celebrates its 79th 58 HR Management
Shifting Dimensions anniversary, it is time to take People Always
14 Regional Aviation stock of its achievements 60 Industry
Competing for Middle Ground and analyse the pace of its ‘ We now see ourselves proving
modernisation efforts to keep our capabilities in avionics’
INduSTRy its tryst with destiny to be a 61 Hall of Fame
world class aersopace power N irmalJit Singh Sekhon
17 Honeywell
A Unique Partnership • 62 Newsdigest
IAF SPeCIAl SP’s ISpSecUiaEl AN SP GUIDE PUBLICATION 64 lStaasntWd Uorndited
5 A Word from editor Awww.spsaviation.netviaNews Flies. Wte Gather iIntelligeonce. Every Montnh. FrOoCmTO BIEnRd • i2a0.11
CorrECTIon

2190 RMChoelisle sofasf gHteiolsln Noouwr ❚+ EB R -euJgseitonsne &asls CJ JoeTmtst pOewARAtCniSKtH ieEIoArIEnEsFPV hCA EIiETpMSL ETNRBNYTRSA TAT WENSDIT SI AHTSN D 7AEL9SYFTSHAIEN A YTNH OTNOEI iVPBnAECR AESR W AOROFYR FI,T LISTMD MI SCO LTDAIMESESR ANATOEIS RTASTKTOIOEPN AS CTEIOEF CFPOKOR WOTFES RI TNOS puWtbhleis raheuegtdrh eiotn rt s hwearptot inenmg tlyhb em ra eirsntsituciolee no “efsd Se taP bto’os uT Ata vkBieaa oatfiIfo”, n,
– Defence Minister 79 which is no more in existence. BaaI has merged
– IAF Chief with a new body, the Business aircraft operators
22 Infocus association (Baoa),which is recognised by IBaC.
Partnerships & Opportunities SP's Aviation Cover 10-1.ind 1 03/10/1 10:26 AM Rohit Kapur is the President of Baoa.
24 Forum Cover Photo:
Effective Solutions The IAF is coping with its multifaceted
nExT IssuE:
26 Modernisation transformational challenges Chartered Services Growth
Making Haste, Slowly Ilustration By: Anoop Kamath
2 SP’S AVIATION Issue 10 • 2011 www.spsaviation.net
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DAS_50Inde_210x267_SPA_uk_DAS_50Inde_210x267_SPA_uk 08/07/11 15:26 Page1
> Mystere IV A
> Alizé
> Jaguar
> Toofani
> Mirage 2000
> Rafale
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IAF SPECIAL
A word from editor
it is of paramount
importance to augment
iaf’s entire range of capabilities
– from rocketry to combat
and transport aircraft, to uaVs
and heliborne operations,
besides ushering in an era of
SP Guide PublicationS’ PubliSher and editor-in-chief Mr Jayant Vigorous r&d with actiVe
baranwal PreSentS SP’S Military yearbook 2011-2012 (an annual
feature Since 1965) to Mr a.k. antony, defence MiniSter. priVate sector participation
S IT celebrATeS ITS 79th anniversary, the In- A key element that fuels this remarkable progress is corporate
dian Air Force (IAF) has just one wish to make be- aviation. This is a sector that is poised for phenomenal growth,
fore blowing out the candles on the birthday cake: but it needs more than a little help from the industry, which
modernise. Indeed, modernisation is the mantra should be freed from the yoke of stifling tax regimes and regu-
for any air force in the world to develop full spec- lations. We take a closer look at all this and analyse trends in
Atrum capabilities, and the IAF is no exception. regional aviation in India that is witnessing the fastest air traffic
The IAF has come a long way since 1932 when it began growth—of nearly 10 per cent expected to be sustained over the
with half a dozen officers and a couple of Wapiti aircraft. To- next 20 years. That said, however, little can happen in the air
day, the men and women in blue of the world’s fourth largest without things changing on the ground.
air force can proudly look back on those years, having bravely The need of the hour is for the government to do more to set
faced challenges not only from the enemy but of operating over up a modern aerospace industry and R&D establishment. Com-
some of the most hostile terrain in the world. Along with the bined with the significant strides India has already made in the
heroics, there were the heartbreaks, too. The appalling series of regime of space technology, this will enable the country to take
crashes of its frontline fighters in recent years must be one of bolder steps not just in aerospace, but in defence research and
the worst chapters in IAF history. This would have been a seri- development. That, perhaps, would be the best way to salute
ous blow for any air force, but the IAF has shown steely resolve the IAF, which should ideally aim for a 50 combat-squadron
in breaking out of the thunderclouds into bright sunshine. For force by, say, 2032, when it could happily put 100 candles on
things are looking up now, and the IAF is finally on the home its birthday cake.
stretch to acquiring the long-awaited medium multi-role com- Jai Hind!
bat aircraft (MMRCA)—a contract that will probably be sealed
before the year is out.
The IAF of tomorrow should be ready to scramble to guard
India’s enhanced strategic and security interests that extend
from the Straits of Hormuz to the Straits of Malacca, and includes
the Central Asian Region. For this, the importance of long-range
precision strike, strategic surveillance, and other revolution in
military affairs (RMA) technologies in maintaining air superior-
ity cannot be overstated. So it is of paramount importance to
augment the Air Force’s entire range of capabilities—from rock-
etry to combat and transport aircraft, to UAVs and heliborne
operations, besides ushering in an era of vigorous research and
development (R&D) with active private sector participation. No
wonder the acquisition of force multipliers like airborne warn-
ing and control system (AWACS), midair refuelling aircraft, and
advanced radars—all crucial elements in force potency—top the
IAF’s shopping list.
In this issue, we also look at the emerging unique partner-
ships between industry and air force that are key to energis-
ing the Indian aerospace sector. It is good to see New Delhi
shaking hands with major international aerospace players like Jayant Baranwal
Honeywell over deals that augur well for India’s civil aviation Publisher & Editor-in-Chief
scene, which is rapidly ascending to a 20 per cent growth level.
Issue 10 • 2011 SP’S AVIATION 5
Civil Business AviAtion
HAWKER 4000.
touching new high: EmbraEr
PhEnom is onE of thE most THE ULTIMATE BUSINESS SPACE.
dEsirEd businEss jEts in thE
country
It’s all
Rosy
Although the number of corporate jets in the country is still
relatively low, the major business aviation manufacturers that
currently dominate the global scene, like Bombardier, Cessna,
Dassault Aviation, Embraer, Gulfstream and Hawker Beechcraft,
are all bullish about the Indian market THE WORLD’S MOST TECHNOLOGICALLY ADVANCED SUPER-MIDSIZE BUSINESS JET.
We know that the experience you’ll have traveling on any one of our aircraft is just as important
as how fast you’ll get there. In the Hawker 4000—the world’s most technologically advanced super-
midsize business jet—we engineer our interiors with your need for productivity in mind. Hawker
SN’T AN execuTIVe jeT a By joseph Noronha, at about 549 aircraft. This is a depress-
good-looking, power-packed ing 47 per cent below the peak attained Beechcraft craftsmen bring superior workmanship to a spacious cabin that accommodates eight
machine? But beauty and per- Goa in 2008. But the good news is that sales in stand-up, stretch-out comfort. With amenities and fi nishes that set the benchmark for business
formance come at a price—as could rise by 20 per cent to more than aviation, you and your team can maximize time spent traveling. Learn more HawkerBeechcraft.com
any business aircraft owner 650 next year.
iwill tell you. It is a price that In India, too, the picture is rather
many prosperous and up-and-coming rosy. Till a few years ago, only the coun-
Indian entrepreneurs are ready to pay. try’s super-rich could afford to own an
According to JP Morgan North American Equity Re- aircraft. In 2003, there were just 350 private aircraft of all
search’s business jet monthly report for September, global kinds in the country. That figure has practically doubled, EUROPE, MIDDLE EAST & AFRICA [phone]
business jet deliveries are expected to remain flat this year and could easily double again within the next 10 years. Al-
UNITED STATES & THE AMERICAS +1.316.676.0800
6 SP’S AVIATION Issue 10 • 2011 www.spsaviation.net ASIA-PACIFIC [phone]
©2011 HAWKER BEECHCRAF T CORPORATION. ALL RIGHTS RESERVED. HAWKER AND BEECHCRAF T ARE TRADEMARKS OF HAWKER BEECHCRAF T CORPORATION.
Attention:
HAWKER 4000.
THE ULTIMATE BUSINESS SPACE.
THE WORLD’S MOST TECHNOLOGICALLY ADVANCED SUPER-MIDSIZE BUSINESS JET.
We know that the experience you’ll have traveling on any one of our aircraft is just as important
as how fast you’ll get there. In the Hawker 4000—the world’s most technologically advanced super-
midsize business jet—we engineer our interiors with your need for productivity in mind. Hawker
Beechcraft craftsmen bring superior workmanship to a spacious cabin that accommodates eight
in stand-up, stretch-out comfort. With amenities and fi nishes that set the benchmark for business
aviation, you and your team can maximize time spent traveling. Learn more HawkerBeechcraft.com
EUROPE, MIDDLE EAST & AFRICA [phone]
UNITED STATES & THE AMERICAS +1.316.676.0800
ASIA-PACIFIC [phone]
©2011 HAWKER BEECHCRAF T CORPORATION. ALL RIGHTS RESERVED. HAWKER AND BEECHCRAF T ARE TRADEMARKS OF HAWKER BEECHCRAF T CORPORATION.
Attention:
Civil Business AviAtion
though the number of corporate jets in the country is still generally quoted in US dollars, the outlay goes up if the value of
relatively low, all the major business aviation manufactur- the rupee drops against the dollar. There’s anecdotal evidence
ers that currently dominate the global scene, like Bombar- that a few deals have fallen through due to the time and ten-
dier Aerospace, Cessna Aircraft Company, Dassault Aviation, sion involved in the whole affair.
Embraer, Gulfstream Aerospace and Hawker Beechcraft, are However, manufacturers like Cessna, responsible for the
bullish about the Indian market. According to the US-based iconic Citation series, are always ready to assist prospective
consultancy Firestone Management Group, there were 136 customers via its finance captive Cessna Finance Company
business jets registered in India as on March 15 this year, (CFC). Mahindra and Mahindra (M&M) may also use its non-
95 of which were less than 10 years old. This constitutes banking financial arm—Mahindra & Mahindra Financial
the largest business jet fleet in Asia. Hawker Beechcraft was Services (Mahindra Finance)—to back sales of its aircraft.
ranked first with 35 private jets (26 per cent of the total). Mahindra Aerospace is seeking to establish itself as a lead-
It was followed by Cessna, Bombardier, Dassault and Gulf- ing aircraft manufacturer globally like Embraer of Brazil.
stream in that order. It plans to build general aviation and business turboprop
aircraft of up to 18-seat capacity and sell 25-30 of them per
Purchase Procedures month. The five-seat Mahindra-National Aerospace Labora-
Most corporations perceive business aircraft as an invaluable tories (NAL) C-NM5 turboprop aircraft completed its maiden
productivity-enhancing tool. However, many governments, in- flight on September 1 and hopes to meet Federal Aviation
cluding that of India, appear to view private planes through Regulations (FAR) Part 23 norms in about six months. Inter-
the rich-versus-poor prism and seem to believe that these ma-
chines are essentially toys of the wealthy. Government officials
see no compelling reason or urgency to simplify import licens-
ing procedures or to lower duties and taxes, or, to promote
dedicated business aviation infrastructure. Anyone hoping to
acquire a business jet, therefore, should be prepared to en-
counter hurdles at every stage, not least because a business
aircraft represents a sizeable investment. For most individuals
or company executives it is still a once-in-a-lifetime decision.
And the costs do add up. Besides the initial purchase price,
insurance, fuel, maintenance, airport and navigation fees, cater-
ing, crew, and hidden items—all must be factored in before tak-
ing the plunge. Not everyone needs to own an aircraft to enjoy
the benefits of business aviation. At the most basic level, jet card
or block charter arrangements should ideally suit customers
who envisage a requirement of 100 hours or less of flying per
year. Then there’s fractional jet ownership—similar to the famil-
for the elite:
iar time sharing plans of tourist resorts—which offers mobility,
gulfstrEam g550
convenience, flexibility and privacy without the high cost of full in flight
ownership, and without having to get too involved in mainte-
nance or operational issues. Leasing is an attractive alternative
in case of lack of ready cash if annual utilisation is expected to
be above 250 hours of flight time, preferably even 300 to 350
hours. It enables the cost to be spread across many years and national type certification is the ultimate goal for the light
allows the operator to fly at a relatively economical price. At the utility plane, expected to cost around $4,00,000 (`1.8 crore).
end of the lease period, the lessee has the option either to return
the aircraft, renew the lease or purchase the plane. No crisis iN Prices
However, becoming the exclusive owner of a sleek and According to Forbes’ 2011 list, India has 55 dollar billionaires,
powerful new business jet obviously has its charm. But import- the fourth highest number in the world. A recent study by glob-
ing an aircraft into India can take several months. The tedious al consultant Deloitte Centre for Financial Services predicts
process includes obtaining approvals and completing import that the number of millionaire households in India will grow
licensing requirements with the Directorate General of Civil from 2,86,000 to 6,94,000 between 2011 and 2020—a growth
Aviation (DGCA), the Reserve Bank of India (RBI) and the Cus- of 143 per cent. That means many more potential clients for
toms Department among other agencies. Private aviation com- private aircraft sales. Manufacturers point out that it is not too
pliances are treated on par with those of scheduled airlines. So expensive to maintain a business jet. The monthly expenses on
acquiring a small personal jet can be as complicated as buy- a super mid-size jet, for instance, may not exceed `8-10 lakh,
ing a Boeing B747. Finance is accessible only if prior approval including the pilot’s salary. But what about acquisition costs?
has been obtained from the RBI. When the aircraft does finally There’s a wide variety of business jets on offer, some 60
fly in, its anxious owner has to contend with hefty customs models, intended to suit every need and pocket. In the personal
duty and other taxes, besides high sales tax on aviation fuel. jet category, the ultra-cheap Diamond D-Jet costs just $1.89
Although non-scheduled operator permit (NSOP) holders are million (`8.5 crore). Cessna recently announced a forthcoming
exempt from customs, aircraft imported for private use attract addition to its Citation light jet family. Priced at $4.20 million
over 25 per cent duty. And since prices of imported aircraft are (`19 crore) the Citation M2 neatly bridges the gap between its
8 SP’S AVIATION Issue 10 • 2011 www.spsaviation.net