Scheduled Commuter Airlines (SCAs) – A turning point in Indian Regional Aviation?

12 Thursday Nov 2015

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2015, Airline, Aviation, Civil, Commuter, lease, Ministry, National, NCAP, Policy, rates, Scheduled

NCAP 2015 Regional Aviation India

Till date, regional airlines in India have been looked upon in poor light, largely because of the past and the present. No regional airline in India has survived long, collapsing under the pressures of mismanagement and poor planning. Even today, the way in which regional airlines are both managed and run is disappointing.

The ministry’s proposal for Scheduled Commuter Airlines (SCAs), and the associated benefits, are huge. For one, SCAs will be able to enter into code shares with other airlines. This will be the starting point for capacity purchase agreements (CPAs) as seen in the US of A where mainline airlines contract commuter or regional airlines to offer last airport connectivity. It turns into a win-win for both mainline and the regional or commuter airline.

Yet, the paid up capital requirement, as stipulated by the ministry, reduces entry barriers. This will allow the “not-so-good” to enter the business, mismanage the business, ultimately leading to a collapse, non-payment of salaries, and the like. So how much does an airline require to run?

It depends on many factors. We look into market lease rates of popular aircraft, and the amount of money the airline is going to lose over a period of 2 years. The projections are based on statistical data derived from many airlines, and will make you appreciate how much an airline really needs. We also expand the aircraft set to include other, smaller, in production turboprops.

We invite you to learn more by clicking here.

Is the Indian ‘Middle Class’ of 300 Million ready to fly?

05 Thursday Nov 2015

Posted by theflyingengineer in Airline, Aviation

≈ 3 Comments

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300, Aviation. Draft, Civil, DGCA, Growth, Million, Ministry, Passenger, Policy, population

Everyone today looks upto India as the next destination for growth. The Ministry of Civil Aviation, in its draft National Civil Aviation Policy, has captured the attention of everyone with the claim of a large middle class population, and the promise of certain reforms that should may better the ease of doing business.

We appreciate what the Ministry has done, is doing, and will do. But certain claims must be taken with a pinch of salt, must be questioned, and analysed, just to prevent over-optimism and to make room for realism. Like for example:

India is a 300 million strong population of middle class persons. The Ministry targets each of these 300 million to fly atleast once in their life. Pertinent questions: What is the definition of middle class? What subset can really afford air travel? These questions are important to prevent overcapacity in the Indian market based on optimism.
India targets 300 million domestic ticketing by 2022. That means, calendar year (CY) 2021 must end with 300 million domestic passengers in a single year. India will end CY 2015 with 80 million domestic passengers. What is the compound annual growth rate (CAGR) required to touch 300 million in CY 2021? Is this CAGR too high to achive? What do market leaders like Airbus say?

Today, we focus on these two issues, which form part of the Ministry’s vision, and we see if this is achievable. Our views on the Regional Connectivity Scheme and the 5/20 are ready, which we hope to release tomorrow. We will also be commenting on Scheduled Commuter Airlines (SCA) and Safety, and lightly touch upon Aeronautical ‘Make in India’, Aviation Education & Skill Development, and Air Navigation Services.

To read about the first two issues, please click here.

Indian Aviation: Stepping Forward and Backward, again.

28 Friday Feb 2014

Posted by theflyingengineer in General Aviation Interest, Operations

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Aviation, Bangalore, CEO, Exchange, GAGAN, HAL, Landing, Ministry, Night, VOBG

VOBG slips to darkness. Image: Google Earth

HAL Airport “went dark” for a few days; GAGAN system goes operational; Aviation Ministry holds “CEO Exchange” discussion with airline and airframe representatives.

HAL Airport (ICAO: VOBG) had slipped into darkness for a few days. The airport, which belongs to HAL (Hindustan Aeronautics Limited) and formerly served as the domestic and international airport in addition to supporting HAL’s and other various DRDO (Defence Research Development Organisation) arms’ test flights, did not support night operations.

A HAL official stated that there was an issue between Airport Authorities of India (AAI) and HAL, which resulted in the temporary “blackout” of night operations, for a “few days”. Runway lights, and apron lights were reportedly* not “available”. As a result, pilots, especially those operating charter and private jets, which usually use HAL airport as it is in the heart of the city, were forced to fly (and plan) to Bangalore’s Kempegowda International Airport (ICAO: VOBL, IATA: BLR) if their arrival or departure was after dusk or before dawn.

During that period, HAL airport was rendered a “Day IFR field” for a while. Had this HAL-AAI issue continued, it would have been a sad state of affairs (or the lack of it at night) for the airport that made Bangalore the “Aviation Capital of India”.

Such a move, temporary or permanent, is viewed as retrograde, especially when the country is looking forward to progressing aviation.

A “CEO Exchange” discussion was held at the aviation Ministry (MoCA), today, bringing together high level representatives from IndiGo, SpiceJet, Air Costa, Air India, Go Air, Blue Dart, Boeing, Airbus, Embraer, and ATR, amongst others. The aim was to figure out ways to take aviation to the next level.

However, with the AAI taking actions that affect airfields such as HAL, and flight schools, such as Orient Flight School at Pondicherry, everyday aviation becomes more difficult for operators, and hoping for a step up to the next level is a challenge.

The more progressive face of AAI was seen when the GAGAN system, according to the General Manager, General Manager (CNS) heading the Ground Based Elements of the GAGAN Project at Bangalore, India, Mr. C R Sudhir, “has been put into operation on 14.02.14 at 1000 hrs IST to support RNP0.1 operations in en-route phase of flight over entire Indian Flight Information Region.”

This opens up GPS as a primary navigation aid for enroute navigation, allowing for more direct or shorter routes to be introduced in the Indian airspace. This saves fuel, may help increase aircraft utilization, and support higher air traffic density, which can boost passenger traffic if the savings are passed on to passengers. It also can give a boost General Aviation by allowing airplanes to fly lower on airways, as there no longer is a need for higher altitudes to receive land based radio navigation signals.

Mr. Sudhir also stated, “work is on to achieve APV 1/1.5 certification by fourth quarter of this year.”

*Source: Flight crew operating into HAL/ VOBG.