Glimmer of Hope in Sight for the Industry Irwsi.org/pdf_july_2016/Emonthly_Aug_2016.pdf · Glimmer...

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Glimmer of Hope in Sight for the Industry I n the recent past, Indian Civil Aviation sector, including General Aviation, has grown manifold. In respect of Airlines, air travel has become simpler and cheaper in India. In respect of Non-Scheduled Operators, their number has grown to 121 as per DGCA website on 22 Jun 16. However, in respect of Civil Helicopters, the strength of civil helicopter fleet has not grown since 2012-13. The Industry has been facing too many challenges. While many of these Op & Fiscal bottlenecks have been brought to the notice of MOCA on a regular basis by RWSI, the issues have not been resolved. There were hopes that Regional Air Connectivity Scheme (RCS) will also help boost Sub Regional Air Connectivity. In view of this hope, RWSI sent some suggestions to MOCA which would help helicopter operators to play a role in providing "Point to Point" air connectivity to population centers in hilly states. Though an index has been prepared by the Ministry for airfare caps for the RCS seats for fixed wing aircrafts and helicopters depending upon the distance, the cost of operation of helicopters can never compete with fixed wing aircraft. Unless the cost of operation of Helicopters are reduced, RCS is unlikely to help helicopters play any significant role. Over many long years, the Industry has been waiting for the Govt to provide relief on number of fiscal issues. Even as Shri Ashok Gajapathi Raju Pusapati, Hon'ble Minister for Civil Aviation assured the Industry at international Seminar, Heli Power India 2016 (civil) on 22 Mar 16 that Reduction of custom duties and VAT on import of helicopter spares and ATF, and reducing the ground handling charges at the Airports are being seriously addressed, no relief has come to the Operators. Apart from fiscal issues, Op bottlenecks & lack of infrastructure have also serious cost implications. The promises made by the Minister on Better Navigation & Routing (including dedicated corridors for helicopters especially from/ to busy Metro Airports), Rules to encourage Usage of Helicopters and Heli hubs in Metros at the Heli Power India 2016 (civil) on 22 Mar 16 are still to be kept. Regarding infrastructure, many State Govts are yet to create adequate number of DGCA Approved helipads/heliports for public use. Despite the prevailing ambiance, there is some progress in improving the usage of civil helicopters. Recently, we understand Govt of Andhra Pradesh has tried using helicopters for afforestation drive. Himalayan Heli in J&K is trying out powerline stringing using the Sky crane. Aviators India is planning to launch HEMS in December. There are even rumours that charter services may be started by companies such as Uber in Bangalore (we understand Uberblade provides such services in NY). These initiatives may seem miniscule yet provide some glimmer of hope for the growth of the Industry. We understand that the civil aviation ministry is now in the process of working out detailed steps to implement its National Civil Aviation Policy, 2016 announced on 15 Jun 16. In working out the steps, we request MOCA not to ignore the Helicopter Industry and take action to implement the policy initiates it has promised in NCAP-2016 to provide some hope for the Industry to come out from the negative growth it has been going through since FY 2011-12. The first step towards it is to consider reviving the bi-monthly meeting with RWSI and BAOA to discuss the problems faced by the Operators. AVM (Retd.) K Sridharan VM (G) Editor-in-Chief, Rotor India Glimmer of Hope in Sight for the Industry

Transcript of Glimmer of Hope in Sight for the Industry Irwsi.org/pdf_july_2016/Emonthly_Aug_2016.pdf · Glimmer...

Glimmer of Hope in Sight for the Industry

In the recent past, Indian Civil Aviation sector, including General Aviation, has grown manifold. In respect of Airlines, air travel has become simpler

and cheaper in India. In respect of Non-Scheduled Operators, their number has grown to 121 as per DGCA website on 22 Jun 16. However, in respect of Civil Helicopters, the strength of civil helicopter fleet has not grown since 2012-13. The Industry has been facing too many challenges. While many of these Op & Fiscal bottlenecks have been brought to the notice of MOCA on a regular basis by RWSI, the issues have not been resolved.

There were hopes that Regional Air Connectivity Scheme (RCS) will also help boost Sub Regional Air Connectivity. In view of this hope, RWSI sent some

suggestions to MOCA which would help helicopter operators to play a role in providing "Point to Point" air connectivity to population centers in hilly states. Though an index has been prepared by the Ministry for airfare caps for the RCS seats for fixed wing aircrafts and helicopters depending upon the distance, the cost of operation of helicopters can never compete with fixed wing aircraft. Unless the cost of operation of Helicopters are reduced, RCS is unlikely to help helicopters play any significant role.

Over many long years, the Industry has been waiting for the Govt to provide relief on number of fiscal issues. Even as Shri Ashok Gajapathi Raju Pusapati, Hon'ble Minister for Civil Aviation assured the Industry at international Seminar, Heli Power India 2016 (civil) on 22 Mar 16 that Reduction of custom duties and VAT on import of helicopter spares and ATF, and reducing the ground handling charges at the Airports are being seriously addressed, no relief has come to the Operators.

Apart from fiscal issues, Op bottlenecks & lack of infrastructure have also serious cost implications. The promises made by the Minister on Better Navigation & Routing (including dedicated corridors for helicopters especially from/ to busy Metro Airports), Rules to encourage Usage of Helicopters and Heli hubs in Metros at the Heli Power India 2016 (civil) on 22 Mar 16 are still to be kept. Regarding infrastructure, many State Govts are yet to create adequate number of DGCA Approved helipads/heliports for public use.

Despite the prevailing ambiance, there is some progress in improving the usage of civil helicopters. Recently, we understand Govt of Andhra Pradesh has tried using helicopters for afforestation drive. Himalayan Heli in J&K is trying out powerline stringing using the Sky crane. Aviators India is planning to launch HEMS in December. There are even rumours that charter services may be started by companies such as Uber in Bangalore (we understand Uberblade provides such services in NY). These initiatives may seem miniscule yet provide some glimmer of hope for the growth of the Industry.

We understand that the civil aviation ministry is now in the process of working out detailed steps to implement its National Civil Aviation Policy, 2016 announced on 15 Jun 16. In working out the steps, we request MOCA not to ignore the Helicopter Industry and take action to implement the policy initiates it has promised in NCAP-2016 to provide some hope for the Industry to come out from the negative growth it has been going through since FY 2011-12. The first step towards it is to consider reviving the bi-monthly meeting with RWSI and BAOA to discuss the problems faced by the Operators.

AVM (Retd.) K Sridharan VM (G)

Editor-in-Chief, Rotor India

Glimmer of Hope in Sight for the Industry

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FDI in Aviation SectorWith a view to aid in modernization of the existing airports to establish a

high standard and help ease the pressure on the existing airports, 100% Foreign Direct Investment (FDI) under automatic route has now been allowed in Brownfield Airport projects. This move would also serve in further developing the domestic aviation infrastructure. Further, FDI limit for Scheduled Air Transport Service, Domestic Scheduled Passenger Airline and regional Air Transport Service has been raised from 49% to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For Non-Resident Indians (NRI's), 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy. Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to the consumers. Moreover, FDI policy as contained in the 'Consolidated FDI Policy Circular of 2016’, and as amended from time to time, is subject to the conditions of the extant policy on specified sectors, and applicable laws/ regulations relating to security and other conditionalties. Accordingly, FDI policy on Civil Aviation sector is also subject to sectoral and security conditions. This information was given by the Minister of State for Civil Aviation, Shri Jayant Sinha in written reply to a question in Rajya Sabha on 02 August 2016.

Earlier, on 10 Nov 15 MOCA opened up the civil aviation sector to foreign investment by allowing 100 per cent foreign direct investment (FDI) in ground handling and helicopter services. Then, the Experts felt allowing foreign investment in helicopter and air charter operations would be a game changer. Unfortunately, nothing changed in helicopter services.•

Allocation Under Regional Connectivity

SchemeThe Government of India has recently released National Civil Aviation Policy (NCAP) 2016 which envisages Regional Connectivity Scheme (RCS). The Scheme will inter-alia be implemented by way of Viability Gap Funding (VGF) for operators under RCS. VGF will be shared between Ministry of Civil Aviation and the State Government in the ratio of 80:20 and for the North-Eastern States the ratio will be 90:10. The payment of the full amount of the VGF will be made to the airline operator from the Regional Connectivity Fund (RCF) and the State Governments will be subsequently asked for its reimbursement. The RCF will be funded by a levy from a date to be notified by the Government under Section 5(2) (ab) of the Aircraft Act 1935. This information was given by the Minister of State for Civil Aviation Shri Jayant Sinha in written reply to a question in Lok Sabha on 11 Aug 2016.

Pasighat Advanced Landing Ground gets OperationalThe upgraded Advanced Landing Ground (ALG) at Pasighat in Arunachal Pradesh was inaugurated by Hon'ble Sh Kiren Rijiju MoS for Home Affairs in the presence of Air Marshal C Hari Kumar AVSM VM VSM, Air Officer Commanding-in-chief (AOC-in-C), Eastern Air Command on 19 Aug’16. The event was attended by a large number of civil and military dignitaries including the Chief Secretary and Secretary Civil Aviation Arunachal Pradesh and Air Vice Marshal Manavendra Singh Vr C VSM, Senior Officer-in-Charge Administration (SOA), Eastern Air Command Shillong. A fly past by a formation of three Sukhoi-30 MKI Air Dominance Fighter aircraft, that took off from one of the forward EAC airbases was a highlight of the event. This was followed by a Su-30MKI also landing at the ALG. The touchdown by a frontline fighter jet of the IAF at the ALG is a 'historic first' in the predominantly hilly state of Arunachal Pradesh, which has several ALGs at varying altitudes. The new runway surface and other infrastructure built are similar to the other upgraded ALGs that have been inaugurated in the recent months. Replete with facilities such as aprons for ground maneuvering, Air Traffic Control Tower, perimeter road and a security wall, the ALG will facilitate operations of fixed wing aircraft as well as helicopters of both civil and military operators.

The ALG at Pasighat will facilitate air connectivity with rest of the country will give a huge fillip to tourism in the state of Arunachal Pradesh. The pristine and picturesque landscape of Pasighat, on the banks of river Siang, will become accessible to rest of the world. The un spoilt natural beauty of the area is sure to attract many a tourist, which in turn will usher in a new round of prosperity and happiness for the local population. AAI is in the process of setting up a civil terminal, the construction of which has yet to commence. Now the need of the hour is for all agencies to get together and make it happen. •

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August 9, 2016 TASS. Russian Helicopters Group is planning to sign a contract with India before the year end to overhaul three Mil Mi-26 (NATO reporting name: Halo) heavy military transport rotorcraft, Group Deputy C E O f o r A f t e r - S a l e Maintenance Igor Chechikov said."India is a key strategic partner for Russian Helicopters Group and a major operator of Russian-made rotorcraft," Chechikov said.

"Russian Helicopters Group is planning to sign a contract with India before the end of 2016 to overhaul three Mi-26 rotorcraft," he added. According to the group’s press office, India’s Defense Ministry and Russia’s arms exporter Rosoboronexport signed a contract in late July for the repair and upgrade of ten Indian Navy Kamov Ka-28 (Helix) antisubmarine warfare helicopters. The helicopters will be repaired at the Aircraft-Manufacturing Enterprise in Kumertau in the Urals.•

India Signs $300M Helicopter Upgrade for the Navy

After nearly eight years of waiting, India has signed a $300 million contract with Rosoboronexport of Russia to upgrade 10 Russian-made submarine-hunting helicopters for the Indian Navy, said an Indian Ministry of Defence (MoD) official.

"All 10 copters will be modernized and upgraded and delivered at regular intervals over the coming five years," the official said of the Kamov-28 helicopters. India issued a request to upgrade the helicopters in 2008.

According to an Indian Navy official, the service is facing a shortage of anti-submarine warfare (ASW) helicopters and has been relying on Kamov-28s with 1980s-era technology. The other ASW helicopters with the Navy are 16 aging Sea King helicopters, which need urgent replacement, the official added.

To circumvent the European sanctions against Russia, which could hinder supply of advanced sensors from Europe, the Kamov-28s will first be sent for technical haul by Russian-based firm Russian Helicopters and then brought back to India.

Once they return to India, the helicopters will receive an upgrade of advanced European sensors at the naval base in Visakhapatnam, where Russian Helicopters engineers will install the sensors, an MoD source disclosed.•

IAF airlifts many from Rewa, Satna hinterland

Bhopal: After incessant rains that lashed Madhya Pradesh, especially Rewa and Satna districts. IAF helicopters were pressed into action on August 19 to conduct search, rescue, relief, relocation and to provide humanitarian assistance in the two districts. Due to heavy rains, the residential areas got severely flooded, affecting more than 30000 families in the two districts.

The floods were described as the worst in recent times in the area. “IAF responded by mobilizing its assets placed at Air Force Station, Bamrauli, Allahabad. The IAF humanitarian assistance was being coordinated by the IAF Central Command HQ based at Bamrauli. The task force included Chetak helicopters from Basic Flying Training School, Bamrauli, and was further augmented by the ALH from Bareilly. The operations were carried out “in close synergy with the civil administration”, said IAF’s spokesperson.

Six people in Satna district were saved from ruins of a collapsed house by winching them up into helicopters and taking them to Satna ALG. Another helicopter in the meantime carried out aerial drop of relief material in Rewa district.•

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A total of 16 pilots benefitted from the courses. 04 pilots attended Procedures Training Course on 10-11-Aug’16; 04 pilots attended CRM & Survival Training courses on 23 Aug’16 & 05 pilots attended the same course conducted on 26 Aug’16. Dangerous Goods Regulation Awareness Training was attended by 03 pilots on 24-Aug’16 at Noida.

RWSI Governing Council is indeed thankful to its highly qualified and experienced instructors including Gp Capt SK Manocha, Gp Capt MK Labroo, Wg Cdr VP Mathur, Capt PP Singh who conducted the Ground Training courses and written tests for the pilots. At the end of the Training, the participants gave

their "Excellent" feedback on the course contents and quality of Training Aids used in the conduct of training. On successful completion of the course, the candidates were awarded the Course Certificates. We earnestly appeal / request to our esteemed Aviation Operators to consider sending their Pilots & other Aviation personnel for all Ground Training to RWSI which is conducting all Ground training through its team of highly qualified & experiences volunteer instructors with excellent professional standing.•

RWSI Training Programme(September 2016)