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India NewsWatch: Aerospace SectorIndia NewsWatch is a package of news articles compiled by the Canadian Trade Commissioner

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Disclaimer: India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients. As such, the opinions and information in the included articles do not reflect the views of the

Canadian Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be

available only in the language(s) in which it was originally written.

AEROSPACE

Airbus launches customer support network in IndiaPTI/19 June, 2012

Witnessing an increase in customer base in the region, Aircraft manufacturing company Airbus has set up an enhanced customer support network in the country. The Customer Support Network (CSN), operating from Delhi and Mumbai, would provide a continuous and extended regional field support and services, a company release said.

Airbus would combine the CSN with Airbus Training India and the Flight Operations Team in Bangalore to provide local support.

"Airbus' customers will now see an integrated team based in India," said Airbus Customer Services Executive Vice President Didier Lux.

"This initiative will pilot the way for global deployment of this structure to enhance support coverage for all our customers," he said in a statement.

TCS Insights: Given the pace of growth of Indian market, the setting up of a customer support network by Airbus shows the importance given to Indian market by the global aircraft manufacturer.

This highlights the opportunity for Canadian aircraft manufacturers and MRO service providers in the Indian market for the provision of site/ground support.

Air Works buys into Dubai-based Empire Aviation GroupET Bureau/19 June, 2012

Air Works India Engineering Pvt Ltd, a provider of aviation services, including maintenance of aircraft, has announced a strategic investment in Dubai-based private aviation specialist, Empire Aviation Group FZCO (EAG).

This move will help Air Works increase its footprint in the Middle East and provide world class aircraft management services to its customers in India, according to a press statement.

Air Works has funded this strategic investment through a mix of internal accruals and structured debt finance of Rs 120 crore from private equity company KKR & Co. Vivek N Gour, Managing Director, Air Works said the investment is in continuation of a long -term strategy to add significant capabilities to the service portfolio, adding that EAG has a great business model, a very experienced management team and a strong reputation within the regional and international industry.

He said Air Works and EAG can build a strong franchise in the "emerging aviation markets" of India and the Middle East. Formed in Dubai in 2007, by the existing management team and co-founders of the company - Paras Dhamecha and Steve Hartley - EAG provides integrated private aviation services offering aircraft sales, aircraft management, aircraft charter, and aircraft finance and insurance, according to the press statement.

TCS Insights: The investment by Air Works in Dubai based Empire Aviation Group shows the emergence of the Indian MRO sector and highlights that Indian MRO companies are keen to tie-up internationally for the sourcing of best practices and services to cater to the growing Indian MRO market.

July 2012 Contact: india.commerce@international.gc.ca

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MRO-2012, to be held in Mumbai from Sept 25 -27 will attract the global players in MRO and offers an opportunity for Canadian companies to witness first hand the potential of India for their products and services.

European companies make a bee line for Kannur AirportIANS/25 June, 2012

European companies are making a bee line to get contracts for the proposed Rs 1,400 crore Kannur International Airport in Kerala where work is about to commence, according to an official.

Kannur airport is located 540 km from here and is the fourth international airport in the state.

"The work for the proposed airport is planned in three phases with the first phase would be levelling of the ground over more than 1,000 acres of land. The tender for this was to end by June 30 and following requests from several European firms we might extend it by a month," said the official who did not wish to be identified.

Kannur International Airport Limited (KIAL) has already been registered and would be built under a public-private initiative with former civil aviation secretary V. Thulasidas being appointed the managing director of the new company.

"The levelling of the land is estimated to cost around Rs 400 crore according to the detailed project report prepared by the Cochin International Airport Limited. There is a good rush of companies who are interested (in the project) which is expected to take 30 months," said the official.

The second phase includes building the runway and apron and the third phase includes the building of the terminal and the air traffic control towers.

"We expect that by the end of 2014 the airport could be ready or latest by the first quarter of 2015," added the official.

State Minister for Excise K. Babu, who is also in charge of the airport development said that the local issues of land acquisition would be sorted out soon.

"Most of the people who gave the land have been compensated The shares for individuals who have already applied (more than 6,000 applications) would also be taken up shortly," said Babu to questions that came up in the assembly, Monday.

In the first phase of allotment the state government has decided to issue share capital to the tune of Rs 784 crore, of this the state government' share has been pegged at 26 per cent.

At least 49 per cent of the shares have been earmarked for individuals and the Oommen Chandy government after public demand, especially the non-resident Keralite's reduced the minimum amount of subscription from 2001 shares to 500 shares. (Each share is priced at Rs 100).

Bharat Petroleum Corporation Limited (BPCL), one of the largest public sector oil company, has picked 21 per cent stakes at a whopping Rs 170 crore in the proposed airport.

The others who have picked up shares include the state owned wholesaler of liquor and beer, (Kerala State Beverages Corporation), Kerala Minerals and Metals, Kerala State Electricity Board.

TCS Insights: Following the success of Cochin International Airport which was developed through a Public Private Partnership in 1999, the announcement by the Kerala Government to build Kannur International Airport has attracted the interest of European companies to participate in the $ 250 million project.

Canadian companies and institutional investors can participate in the Emerging Kerala event being planned by the Kerala Government in September 2012 and look at projects to join hands with local companies in developing aviation infrastructure such as airports, MRO facilities, pilot training, and skill development academic institutes.

For more information on Aerospace Sector consultAerospace Sector Profile - India

http://www.tradecommissioner.gc.ca/India

Want to know more? Contact the Aerospace Sector Team in India atindia.commerce@international.gc.ca

Disclaimer

India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS

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The Canadian Trade Commissioner Service Everywhere You Do Business

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clients. As such, the opinions and information in the included articles do not reflect the views of the Canadian

Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official

Languages Act and may be available only in the language(s) in which it was originally written.