India’s SpiceJet to Acquire 205 Boeing Aircraft

India’s Gurgaon-based budget airline SpiceJet has signed an agreement with Boeing to purchase 100 new Boeing 737 MAX 8s, 42 MAXs, 13 additional 737 MAXs as well as purchase rights for 50 additional planes.

India (as well as other countries in Asia), is an important market for aviation with analysts expecting passenger numbers to more than triple over the next 20 years as millions more people become wealthy enough to fly for the first time, reports Channel NewsAsia.

Interior of a SpiceJet carrier

The new aircraft will increase the range of SpiceJet’s flights by up to one hour, opening up many more destinations, including international ones, Ajay Singh, SpiceJet’s chairman, told reporters. Most Indian carriers have returned to profitability in recent years, due to lower fuel costs, but challenges remain in translating the surging demand into sustainable profits because of the competitive market and high running costs.

 

January 18, 2017   No Comments

India’s Kalyani Group is Part of OEMs’ Global Supply Chains

Pune, Maharashtra-based Kalyani Group supplies Boeing titanium flap track forgings for its 737 series aircraft. The company also manufactures landing gear and structural components for other OEMs such Rolls-Royce, Liebherr Aero and Safran.

Kalyani has three joint ventures in the defense sector: BF Elbit Advanced Systems for artillery systems; Kalyani Rafael Advanced Systems for specific areas like missile technology (spike missile); infantry combat vehicle upgrade and advanced armor solutions; BF Premier Energy Systems for ammunition; air defense systems and short-range surface-to-air missile systems, with Saab of Sweden

In a communication with Defense News, chairman, Baba Kalyani said that India-made defense products were competitive because of the knowledge and skill arbitrage coupled with labor arbitrage that gives India an edge over other competitors.

Kalyani Group Logo

 

 

 

November 17, 2016   No Comments

India’s Navy to get 4 Additional Boeing P8i Aircraft

India’s  Cabinet Committee on Security, approved the purchase of four additional Boeing P8-I Neptune Maritime Patrol Aircraft estimated $1 billion . These will be inducted into the Indian Navy over a period of three years.

P-8I Maritime Patrol Aircraft

The P8-I Neptune is an India variant of U.S.A.’s P8A ‘Poseidon’. This aircraft is equipped for long range anti-submarine warfare, anti -surface warfare, intelligence, surveillance and reconnaissance in maritime and littoral operations. Its communication and sensor suite includes equipment developed by government defense companies and private manufacturers.  It has  a ferry range of 1,243 miles, where it can patrol the seas for four hours, reports Defense World.  India has already purchased eight of these aircraft since 2008.

 

July 6, 2016   No Comments

Boeing Offers to Build Aerospace Capacity in India

In an interview with Hindustan Times in New Delhi, Dennis Muilenburg the CEO of Boeing who joined the plane maker as an engineering intern in 1985, became CEO in 2015, and now becomes chairman on March 1, discussed his plans for Boeing’s investment in India.

More than an investment in money is his vision of investing in skills, capabilities, infrastructure, and partnerships – a long term commitment to build aerospace capacity in India.

Subject to all government-to-government agreements, he thinks that there is a great opportunity for Boeing to bring the F-18 Super Hornet – a twin engine, supersonic, all-weather, multi-role jet fighter that is capable of taking off from an aircraft carrier – to India.

F-18 Super Hornet

F-18 Super Hornet

“We think there is a great opportunity for us to bring Super Hornet to India that will fulfill an operational need, but even more importantly think about it as a capability investment, and architect it as a broad industrial investment. [We will] build up a supply chain that has industrial capability, not only to design but also to manufacture for the full life cycle of the products. We see Super Hornet as an opportunity to do that, to tie directly with the Make in India strategy,” he said. “In terms of our ability to execute the project, ramp up supply chain and skills base, that is something we can move up on fairly quickly,” he added.

When asked about the key hurdles the company foresees, Muilenburg replied, “The key here is making this big step from a buyer of technology to [developing] indigenous manufacturing capability. That is why projects like Super Hornet have the mass and critical size that can accomplish that kind of objective. This requires big investment in skills and technology. Not many countries in the world have that capability to make that big step from supply chain capability to indigenous design and manufacturing capability. We think India has that capability and that’s why we want to invest here.”

February 23, 2016   No Comments

IATA: India Was the World’s Fastest Growing Aviation Market in 2015

India was the world’s fastest growing aviation market in 2015, expanding more than 20 percent, according to International Air Transport Association (IATA) in a December presentation, reports Bloomberg Business. The country’s air travel industry outpaced the 10 percent growth registered in China and 5 percent increase in the United States.

The local airline industry is reaping higher profits thanks to a sharp fall in oil prices, and this has boosted the value of shares in Indian-based airlines. “A sharp reduction in fuel prices remains a key trigger for margin expansion,” said Rashesh Shah and Devang Bhatt, analysts at ICICI Securities.

Jet Airways

Jet Airways

India is forecast to have almost 30 million outbound tourists by 2018, according to IGATE Research.

The Telegraph says India and China are among the fastest-growing markets for aircraft manufacturers Airbus and Boeing, which forecast that Asia will overtake the U.S. as the world’s biggest airplane market in two decades.

January 17, 2016   No Comments