U.S. India Business Forum 2009 U.S. India Chamber of Commerce - Midwest Aviation Panel
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© 2009 Vedder Price P.C. U.S. India Business Forum 2009 . India Chamber of Commerce - Midw Aviation Panel Chicago, Illinois June 25, 2009
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U.S. India Business Forum 2009 U.S. India Chamber of Commerce - Midwest Aviation Panel. Chicago, Illinois June 25, 2009. Setting the Stage - Who We Are. Savio Dias, Kingfisher Airlines, Asst. Sales Manager-Midwest USA & Canada Sami Khaja, Jet Airways, Sales Manager, Midwest and Texas - PowerPoint PPT Presentation
Transcript of U.S. India Business Forum 2009 U.S. India Chamber of Commerce - Midwest Aviation Panel
© 2009 Vedder Price P.C.
U.S. India Business Forum 2009U.S. India Chamber of Commerce - Midwest
Aviation Panel
Chicago, Illinois
June 25, 2009
2© 2009 Vedder Price P.C.
Setting the Stage - Who We Are Savio Dias, Kingfisher Airlines, Asst. Sales Manager-Midwest USA &
Canada Sami Khaja, Jet Airways, Sales Manager, Midwest and Texas Raj Sidhu, American Airlines, Sales Manager, US-India/Russia Sanjay Tiwari, KLM Cargo, Manager, US Sales & Customer Service Douglas Ochs Adler, Vedder Price P.C., Moderator
3© 2009 Vedder Price P.C.
Setting the Stage - Blue Skies (1) Current State of US-India Relations (India 3.0) India’s GDP has tripled since 2000; 7%+ est. for 2009-2010 US Exports to India and FDI have doubled in five years
2004-2007: India imported >$11bn aviation goods from US GE India just received “Validated End-User” authorization
Since January: Infra. Development of US$13.59bn Stock Market Rose 17% on May 18 Savings Rate of 37%
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Setting the Stage - Blue Skies (2) Open Skies (2005) India’s 11th Five Year Economic Plan (2007-2012) ($600bn)
Airports ($9bn), Highways ($78bn), Power ($150bn), Rail ($62bn), Seaports ($18bn), Telcom ($65bn) and Water ($100bn)
All sectors intertwined Projects will go through: only 22% India GDP related to exports vs.
65% for PRC
Aviation Cooperation Program (2007) Indo-US Aviation Summit (December, 2009)
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Storm Clouds(but not thunder and lightning)
Price of Oil Doubled between January and May
IATA Projected losses of $9bn for airlines globally India’s airlines account for 35% of losses but only 2% of
capacity
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A View From the Front Lines: S.W.O.T. Analysis and Discussion
Strengths Weaknesses Opportunities Threats
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(Not so) Primary Colors (1) Green Lights
FDI and Tax incentives Waiver of import duties on some capital equipment US Ex-Im Bank Infrastructure Facility ($2.4bn committed)
Yellow Lights FY 2008-2009: Nat’l Highways Authority received bids for only
22 of 60 projects Minister Patel: no more airport PPP’s Nuclear power: end-use monitoring and disposal issues
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(Not so) Primary Colors (2) Red Lights
High Courts of Bombay and Bangalore rulings (operators = instrumentalities of state)
Delhi and Mumbai airports named to IATA “Hall of Shame” Raised fees 207%!
FCPA and other corruption concernsIndia scored 3.4 out of 10 (0 = most corrupt and 10 = most
honest) Uneven (unequal?) application of laws and regulations
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Recommendations KYC and KYP
States are easier to deal with Beware Satyma/Maytas situations, esp. w/land permits
Include Focus on Infrastructure Utilization ATC: reducing 1 minute off ea. of India’s 2mm domestic flights =
200K ton decrease in CO2 and savings of $67mm Relaxation of ECB Policy: Gov’t fixated on Dabhol Transparency: Cape Town Treaty ratified but never implemented
10© 2009 Vedder Price P.C.
Thank You!
For further information, please contact:Douglas Ochs Adler
Vedder Price P.C.875 15th Street, NW, Suite 725
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