08 Aug 2017

India Aviation Industry Newsletter 8 August

Air India seeks $740 million loan for purchase of six Boeing aircraft Air India is looking for bridge loans worth up to USD 740 million to finance purchase of six Boeing 787-8 planes, according to a tender document. The airline has sought offers from banks and financial institutions to arrange bridge financing of up to USD 740 million for the six aircraft. The amount translates into around USD 123.3 million per plane.  At the current exchange rate, USD 740 million is around Rs 4,720 crore. Boeing Contemplates Big Benefits From India’s Aviation Boom Predicting a giant leap in air passengers, US aircraft manufacturer Boeing has released a report which claims Indian airlines will order 2,100 aircraft in the next 20 years. Boeing expects that more than 70 percent of these will be in single-aisle aircraft. India is the world’s fastest growing aviation market with the number of air passengers likely to cross 100 million this year. Boeing's Bullish India Outlook May Undercount Regional Aircraft Boeing’s 20-year market outlook for India, released on July 31, reflects the manufacturer’s optimism that the Indian economy will remain strong and grow from the world’s seventh to third largest by 2037. But that outlook may underestimate the need for smaller regional jets identified during a conference the following day in India’s northeast region. The bullish Boeing forecast, however, calls for only 10 new deliveries of regional jets of 90 seats and below from 2017 to 2036—the same number as estimated last year. Boeing is “still gaging how regionals will pan out” and may increase its forecast for smaller jets next year, Keskar said. He agreed that India’s Regional Connectivity Scheme (RCS) called Udan (“Let every person fly”) will open new regional routes for aircraft including Boeing’s 737 narrowbody airliner. “Over the next four-to-five years, the growth on those (regional) routes will make a Boeing 737 viable DGCA to meet airlines ahead of ICAO audit Aviation regulator DGCA will hold a meeting with airlines to assess their preparedness for the upcoming audit by the UN safety watchdog ICAO, an official said. The International Civil Aviation Organisation (ICAO) is set to carry out a safety oversight audit of the Directorate General of Civil Aviation (DGCA) in November this year. Aviation regulator DGCA will hold a meeting with airlines here tomorrow to assess their preparedness for the upcoming audit by the UN safety watchdog ICAO, an official said. The International Civil Aviation Organisation (ICAO) is set to carry out a safety oversight audit of the Directorate General of Civil Aviation (DGCA) in November this year. Aviation regulator DGCA will hold a meeting with airlines here tomorrow to assess their preparedness for the upcoming audit by the UN safety watchdog ICAO, an official said. The International Civil Aviation Organisation (ICAO) is set to carry out a safety oversight audit of the Directorate General of Civil Aviation (DGCA) in November this year. DGCA to meet airlines ahead of ICAO audit GMR's Hyderabad airport becomes India's first to provide express security check GMR Hyderabad International Airport Ltd (GHIAL), which operates Rajiv Gandhi International Airport (RGIA), today said it has become the first airport in the country to provide a pre-embarkation security check right at the terminal's entry gate. This will serve as 'Express Security Check' facility for domestic passengers travelling without any check-in baggage. India Pursues Urban Air Taxi Service, Operating from Bengaluru Airport Bengaluru, India, is getting its own urban air taxi service, according to the Bengaluru Airport. The “HeliTaxi” service, as it is being called, would initially consist of one aircraft, operated by Thumby Aviation Pvt. Ltd. According to The Hindu, that one aircraft would be a Bell Helicopter 407. The airport said it would fly from the Kempegowda International Airport (Bengaluru), to various parts of the city.  Thumby Aviation is set to begin the process of obtaining regulatory approvals to operate from the airport, the airport said. Only then could the service begin. IndiGo Posts Record Profit Driven by Domestic Traffic Growth The Delhi-based airline is one of few airlines in India which consistently posts profits. Last quarter, IndiGo reported a net profit growth of 37% from the previous year and 84% from the previous quarter. Additionally, it has been reported that the airline maintains a market share of almost 40% in the Indian domestic market. Looking even closer at routes for smaller cities in India, IndiGo commands a market share of nearly 50%. Acumen Aviation © 8 August All Rights Reserved.