16 Jul 2018

India Aviation Industry Newsletter 16 July

IAI's Taxibot to be Deployed at Indian Airports Israel Aerospace Industries (IAI) has entered an agreement with KSU of India for operating TaxiBot vehicles at New Delhi and Mumbai airports. The contract will be implemented in two stages. In the first phase, TaxiBot vehicles will be delivered to the airports and run in a controlled trial until end 2018. The second phase will involve the delivery of 38 additional vehicles in four years to New Delhi and Mumbai airports as well as to the general Indian market. India's aviation market has grown by 20% a year in the past three years, and it will soon be named as the third largest aviation market in the world.Israel Aerospace Industries (IAI) has entered an agreement with KSU of India for operating TaxiBot vehicles at New Delhi and Mumbai airports. The contract will be implemented in two stages. In the first phase, TaxiBot vehicles will be delivered to the airports and run in a controlled trial until end 2018. The second phase will involve the delivery of 38 additional vehicles in four years to New Delhi and Mumbai airports as well as to the general Indian market. India's aviation market has grown by 20% a year in the past three years, and it will soon be named as the third largest aviation market in the world. Indian Airline Fleet Set To Double In The Next Decade According To Avolon Avolon 16 July issued a white paper titled ‘India, a 21st Century Powerhouse’, which provides an in-depth analysis of India’s air travel market. Avolon forecasts that India’s current passenger fleet will double to almost 1,100 aircraft by 2027 – with the total value of aircraft to be delivered over the coming ten years, at current list prices, projected to be $60 billion. InterGlobe Aviation seeks $1.46 billion in borrowings for aircraft purchases IndiGo’s parent InterGlobe Aviation will look to obtain approval in August 2018 from its shareholders for borrowing an additional Rs 10,000 crore (US$1.46 billion) to fund $4.3 billion in future aircraft deliveries. “The company securitizes its supplementary rental obligations due towards the lessors for aircraft on operating leases and issues Standby Letters of Credit (SLBCs) in favor of the lessors. The company will be taking deliveries of a significant number of additional aircraft on a operating lease basis for which new SBLCs will be required to be issued to the lessors,” according to the notice to the shareholders. SpiceJet Plans to Diversify Beyond "Pure Aviation" to Offset Fuel Price-related Risks SpiceJet is planning to diversify its activities beyond "pure aviation" to protect itself from the high risks associated with the aviation sector, and will soon announce forays into a dedicated freight business in cargo and courier logistics. This could be a first for an Indian airline. The airline also plans to develop digital aviation and travel products. They are both likely to be in collaboration with international partners.SpiceJet is planning to diversify its activities beyond "pure aviation" to protect itself from the high risks associated with the aviation sector, and will soon announce forays into a dedicated freight business in cargo and courier logistics. This could be a first for an Indian airline. The airline also plans to develop digital aviation and travel products. They are both likely to be in collaboration with international partners. TruJet plans to add seven ATRs and 20 routes in fiscal 2019 TruJet plans to expand across India by the end of its current fiscal year with the addition of 20 new routes, and the wet-lease of five to seven ATRs. The airline was recently awarded 20 new routes in Gujarat, Rajasthan, Western Maharastra, and the North-East of the country. Vistara to Order USD 3.1 Billion worth of Aircraft from Airbus and Boeing Vistara has agreed to place firm orders with Airbus for 13 aircraft from the A320neo family and with Boeing for six 787-9 Dreamliner. Together, the deals are valued at $3.1 billion, based on published list prices. The letter of intent signed with Airbus comprises 13 firm-ordered A320neo and A321neo aircraft, as well as options for seven more aircraft from the A320neo family. In addition, Vistara will lease another 37 new A320neo-family aircraft from leasing companies. Acumen Aviation © 16 July All Rights Reserved.