28 May 2018

India Aviation industry newsletter 28 May

Domestic airlines to order more wide-body planes as more Indians fly overseas Two Indian carriers are expected to place significant orders for wide-bodied aircraft, one of which could be significant, according to a latest assessment by aviation consultant CAPA. Wide-bodied aircraft form a mere 1.5% of the current fleet of a total 550 aircraft of Indian carriers. About 1,000 aircraft are on order, most of which are narrow-bodied aircraft with single aisle that can accommodate a fewer number of passengers. These aircraft are being acquired for domestic flights or short international routes. IIT-Kanpur Signs Deal to Develop Flying Taxis, VTOLs in India IIT-Kanpur has reportedly signed a Memorandum of Understanding (MoU) with a privately-held tech company called ‘VTOL Aviation India Pvt. Ltd.’ to help develop indigenous flying taxis or Vertical Take-Off and Landing (VTOL) vehicles in the country. The premier engineering college is also believed to be designing a ‘hybrid propulsion system for high reliability and endurance’. The deal according to reports is to be worth Rs. 15-crore. India's first Air Ambulance service launched in Hyderabad Wings Aviation Pvt Ltd is launching a 24/7 air ambulance emergency service, Air Aid reported to be e the first of its kind in India. The company will use a fleet of Augusta 109 helicopters, which travel at a speed of 120 nautical miles per hour and cover 450 kms without refuelling. The venture set up with an initial investment of Rs 150 crore. India's Ministry of Civil Aviation expects 1bn Indian pax in next 15-20yrs India's Ministry of Civil Aviation, via its official Twitter account, stated the expectations are for strong domestic passenger growth over the next 15 to 20 years. The Ministry tweeted: "The Indian air passenger traffic has grown at 19% p.a. over the last 4 years and is expected to grow to about 1 billion over the next 15-20 years". Most civil aircraft buys in India to be driven by low-cost carriers: Deloitte Given its strong growth and potential, the Indian civil aviation market is expected to become the world’s third-largest in 2025, much ahead of the projected timeline of 2027, according to consultancy Deloitte. “The country is forecast to have a demand for a record 2,100 new aircraft, worth $290 billion, with the majority of these being single-aisle planes. The demand will primarily support the growth of low-cost carriers, which account for more than 60 per cent of the total flights in the country,” said Alaric Diniz, Director, Deloitte India. Tier-II cities driving growth in domestic aviation sector There has been a continuous growth in the domestic aviation industry in India, particularly after the Regional Connectivity Scheme was flagged off. The momentum of this growth is now picking up Tier II cities, so much so it has left behind some major national and international airports in growth rate. The 26 pc growth in the domestic aviation sector was largely because of the demand that is being generated from these Tier-II cities and the addition of new routes and services, an AAI official told the Indian press. The regional connectivity scheme is another factor for the rise in traffic, Acumen Aviation © 28 May All Rights Reserved.