Paramount Airways:
Paramount Airways is in talks with Embraer to acquire 15 small aircraft for a list price of about US $500 million. The management expects the new aircraft to join the fleet from September-October onward. The airline is working on the finance options. In June last year, Paramount had ordered five planes from Embraer for US $135 million to start its flights. The discussions with Embraer include the delivery of the new planes for the next two years. Paramount, which operates 10 flights a day connecting four cities including New Delhi in the north and Chennai in the south, will expand to three more cities by month-end. The airline is also in discussions with Singapore Airlines and other carriers for tie-ups. (20 March 2006)

Airbus:
Airbus expects Indian carriers to order 570 planes through 2023 as more people shun slower trains and opt for air travel. (19 March 2006)

AirAsia:
AirAsia plans to launch more flights to China, and subsequently to India, as part of its plans to become an Asia-wide airline. The airline is also looking at forming joint-ventures in the region to boost revenues. According to official sources, India, China and the Philippines are on AirAsia's radar to form joint-ventures. AirAsia has already managed 49 percent-owned joint ventures with low-cost carriers in Thailand and Indonesia since 2004. With the arrival of new Airbus 320 aircraft, AirAsia hopes to increase flights and frequency to China, India and other destinations. (19 March 2006)

World-Class Airports:
Praful Patel, the minister for civil aviation, recently said that the government was committed to developing world-class airports in the country. The government is also keen to ensure that there was equitable distribution of airports. The actual profit of the Airport Authority of India (AAI) during 2004-05 was Rs. 3.25 billion, Based on the bids received for the two airports, it is estimated that profit after tax for 2006-07 will be Rs 5.48 billion. The minister added that Mumbai airport will have two runways after modernisation through relocation of land space. The Delhi airport would also have more than one runway. (19 March 2006)

Airlines in India:
Airlines in India may buy US $4 billion worth of small planes in the next 20 years to meet rising demand for air travel, according to Brazilian manufacturer Embraer. India's carriers may need to buy 165 planes between 2006 and 2025. According to a recent estimate, nearly 40 million domestic passenger movements were recorded last year. The traffic is rising rapidly as low-cost carriers are luring some 15 million daily passengers to shun trains. Of the total 191 aircraft in the country, 72 percent are narrow-bodied, 18 percent turboprops and 10 percent are 30 to 120 seater jets. (19 March 2006)

Air India:
Air India plans to spend Rs. 350 billion to buy 68 new aircraft to compete with rival airlines, and has signed an interim financing agreement with a consortium of banks to fund the purchase of new aircraft for itself and Air India Express. US$ 429 million raised will be used as pre-delivery payment for 22 aircrafts to be delivered by May 2008. IDBI is the lead bank, and members of the consortium will include Bank of Baroda, Bank of India, Canara Bank, Citibank and UCO Bank.

Besides enhancing the frequency of flights in its existing schedule, the airline will expand its network across the nation. With this expansion, nearly 48 existing Air India aircraft will be gradually grounded. Air India has recorded 66 percent growth in passenger traffic in recent times. Air Indian will convert some of its existing aircraft into cargo to lift agriculture products and fresh vegetables from Punjab to facilitate the farmers to export their produce.
(18 March 2006)

Boeing:
Boeing expects Indian carriers to order US $35 billion of planes in the next 20 years. The company plans to spend US $100 million to set up an aircraft-maintenance facility in India. The airplane maker has also agreed to buy US $1.9 billion worth of aviation-related equipment from India. (18 March 2006)

Rising Demands:
India's carriers may buy US $4 billion worth of small planes in the next 20 years to meet rising demand for air travel, according to Empresa Brasileira de Aeronautica SA, the world's fourth-biggest aircraft maker. India's airlines may need to buy 165 planes, which carry less than 120 people. Air traffic in India is rising as airlines are luring some 15 million daily passengers to shun trains. As many as 300 million passengers, or 10 times the current traffic, may fly in the nation of 1.1 billion people by 2030. A spokesman said India's demand for small airplanes may be about 2 percent of global demand for such planes in the next 20 years, and India may account for as much as 40 percent of Asian demand, he said. (18 March 2006)

Kingfisher Airlines:
Kingfisher Airlines is all set to fly one million guests. The airline recently tied up with Galileo International to enable it to expand its reach and distribution. Galileo would enable Kingfisher to strengthen its presence in the domestic and international markets. In addition, the airline placed an order for 15 additional ATR 72-500 aircraft in a deal valued at US $270 million, in addition to orders for five Airbus A380s, five A350s and five A330s. The airline is all set to come out with an IPO within the next four to five months. Vijay Mallaya, chairman of the airlines, plans to take Kingfisher to the international skies in 2007. (18 March 2006)

India's Aviation Standards:
The government of India will soon make amendments in rules and procedures to ensure effective inspections of pilots and aircraft and improve safety standards. A committee will submit a report to recommend changes to empower the Directorate General of Civil Aviation (DGCA), the country's aviation regulator, to facilitate more stringent checking of pilots, aircraft and documentations. The committee is also framing modalities to upgrade and modernise DGCA and enhance its powers and abilities for better monitoring of the aviation industry. Indian carriers were much sought after at Asian Aerospace, the region's largest air show held last month in Singapore, where several airlines from the country signed aircraft and engine purchase deals worth about $6 billion. Indian, a state-run domestic carrier, signed a deal with Airbus last month to buy 43 aircraft for $2.5 billion. (18 March 2006)

Cathay Pacific:
Cathay Pacific plans to triple cargo operations from India by the middle of this calendar year by operating non-stop freighter service between India and Hong Kong. It currently operates three weekly Boeing 747-400 freighters from Mumbai and Delhi in the Hong Kong-Delhi-London route and another three cargo flights in the Hong Kong-Mumbai route. By June, the airline will add three flights in the Hong Kong-Mumbai-Paris route; and by August, it will add four non-stop freighters in Mumbai-Hong Kong route. The airline handles 100 tonnes of cargo in each of its freighter aircraft from India besides about 20 tonnes in its regular passenger flights. About one third of the airline's revenue comes through cargo operations.
(17 March 2006)

Growth Projections:
The Indian aviation sector is witnessing a 25 percent annual growth in both cargo and passenger traffic, which is expected to be maintained over the next five years. According to International Air Transport Association (IATA) estimates, the Asian air cargo traffic is expected to grow at 8.5 percent each year till 2009. (17 March 2006)

Foreign Visitors:
According to industry sources, Britons make up the highest number of foreign visitors to India, capitalising on the increased numbers of flights between the countries. In 2005, over 539,000 Britons visited India, an increase of about 10 percent on the previous year, compared with 522,000 visitors from the US, 138,000 from France and 133,000 from Canada. Last year, airlines including Virgin Atlantic, Bmi and British Airways scheduled extra flights from London to Mumbai. BA also launched services from Heathrow to Bangalore. (17 March 2006)

Aviareps:
Aviareps, the world's biggest GSA in terms of subsidiary networks, is set to launch its Indian operation. The company has lined up its first international airline client, an African carrier, through the IATA Business Consolidation Systems (IBCS) route. The company, based in Germany, represents 50 airlines worldwide in 30 countries. Joseph Fernandes, general manager India, Aviareps, commented that Aviareps saw great potential in the Indian market with more international airlines looking to enter and domestic private carriers keen to fly overseas. (17 March 2006)

Airports Revamp:
The Civil Aviation Ministry proposes to drop the public-private partnership (PPP) model to fund the modernisation of non-metro airports. The Airport Authority of India (AAI) would finance the modernisation of around 43 non-metro projects. According to industry estimates, the airports sector requires funds of Rs. 400 billion for modernisation over the next three to five years. The first ten non-metro airports identified for development are Ahmedabad, Amritsar, Goa, Guwahati, Jaipur, Lucknow, Madurai, Mangalore, Thiruvananthapuram and Udaipur.
(16 March 2006)

Jet Airways:
Jet Airways is in talks with Boeing to acquire a yet-to-be-launched, 450-seater 747-8 intercontinental aircraft for its proposed non-stop US service. The service will start by the end of this year or early next year. The delivery of the aircraft will begin only by 2009. The airline would replace its old aircraft with the 747-8 series for its long haul service. Jet is also evaluating the possibility of inducting other aircraft such as B 777-200 LR, B 787 and even the Airbus family aircraft. According to industry sources, the airline will deploy the Airbus family aircraft for south-east destinations. The airline has firmed plans to start services to Hong Kong, Italy, South Africa, Thailand, and some other destinations. (16 March 2006)

Finland, India Sign Agreement:
Finland and India will soon sign an air services bilateral agreement that will facilitate a direct connection between New Delhi and Helsinki. This flight would shorten the distance between the two countries to six and a half hours, making it the shortest route to Europe from India.
(15 March 2006)

Aviation Policy:
The government has come up with a draft on the national civil aviation policy, which will be submitted to the cabinet by the month end. The draft is a sort of rationalisation on the use of available infrastructure and airports. It focuses on the ongoing growth in the sector, and the changes required for the emerging scenario. It also recognises the emergence of low-cost airlines as a key component of the aviation sector. (15 March 2006)

Blue Dart:
Blue Dart is planning to acquire two Boeing 757 aircraft, which will be used to operate daily cargo flights on the Chennai-Bangalore-Mumbai-Delhi-Kolkata route. The airline currently has a fleet of five Boeing 737-200 aircraft connecting Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai. (14 March 2006)

Jett Airlines Cargo:
Jett Airlines Cargo, Singapore's first private cargo carrier, is aiming to grab a share of the lucrative Indian market from established rivals. The Civil Aviation Authority of Singapore (CAAS) confirmed that it received an application from Jett Airlines Cargo for an air operator's certificate. Investors behind Jett, which was registered in March 2005, include former Singapore Airlines (SIA) and CAAS staff. (14 March 2006)

BAE Systems:
BAE Systems recently signed a long-term lease with First Flight Courier Company Pvt. Ltd. (FFCL) for three ATP freighters, which will be used by the company to start its own freight operations. The company is poised to enter a new phase of growth and development with the creation of a domestic freight airline. (13 March 2006)

TNT India:
TNT India, an integrated logistics and express company, plans to induct dedicated freighters to India. TNT's parent company, TNT NV, is flying 40 freighters worldwide. (13 March 2006)

Low-Cost Carriers:
According to sources, low-cost carriers (LCCs) have grown 100 percent in over a year since their rollout. Nearly 4.5 million LCC seats  have been sold all over the country in the last one year. SpiceJet, having started operations in February last year, expects to break even by May this year. Air Deccan is planning to go public, and GoAir is all set to expand and take flight from 14 cities this month. (13 March 2006)

Continental Airlines:
Continental Airlines cargo business has begun to take off in India after the airline introduced services between New Delhi and Newark in November last year. According to sources, during its first month of operation, the traffic jumped 10-fold to 217,000 kg. Continental operates a daily B777 passenger aircraft on the route, and the cargo is carried on the aircraft.
(11 March 2006)

UTi Worldwide:
UTi Worldwide India plans to intensify its focus on the market with more specialised services to meet the specific needs of customers. The company has gained 9.4 percent market share in airfreight handling, and hopes to grow its business by introducing more IT applications for value-added services. India's potential to emerge as a major manufacturing hub has also enhanced the prospects of the logistics industry. (11 March 2006)

Air Deccan:
Air Deccan's proposed IPO is likely to be delayed by a couple of months. According to sources, the sub-committee formed by Air Deccan to oversee the IPO issue is expected to meet over the next couple of days to take a final call on the issue. (11 March 2006)

Cargo Airlines:
At least four new cargo airlines are drawing up air cargo plans. The airlines include, First Flight Couriers, Flyington Freighters, Shreyas Shipping & Logistics and TNT India. Presently, Blue Dart Aviation is the only dedicated freighter in the country. According to AAI, the cargo movement last year was 1,374,062 tonnes, wherein 479,656 tonnes was domestic and 894,768 tonnes was international cargo. (10 March 2007)

Air India Express:
Air India Express, which offers low-cost service to the Gulf countries, is weighing the option to delink Mumbai and Delhi from its new summer schedule, while adding Chennai to its network. According to industry sources, the move follows the lower-than-expected load factor on these routes. The summer schedule will begin by end-March. (10 March 2007)

Tipping Scales:
According to industry estimates, new generation carriers got off to a roaring start this year, with market share climbing to 28 to 29 percent in January 2006. The available seat inventory was around 39 percent higher at an estimated 112,000 seats in January 2006. With carriers like Air Deccan, GoAir, Kingfisher Airlines and Paramount increasing capacity, the inventory increased to the region of 125,000 to 128,000 seats during February 2006. (9 March 2006)

GoAir Airline:
GoAir, which recently placed orders for 20 Airbus aircraft, is considering various options to finance the purchase. GoAir plans to have a fleet of eight aircraft by end 2006, and 33 by end 2008. The airline will expand its route network from April with the launch of flights on the Mumbai-Delhi, Mumbai-Srinagar, Srinagar-Jammu and Chennai-Delhi sectors, taking the number of daily flights to 28. The airline has been offering 10,000 free tickets every month since its launch last year. (9 March 2006)

Club One Air:
Delhi-based aircraft fractional ownership company Club One Air is planning to acquire Boeing 737 aircraft to use as super luxury airliners. This was confirmed by Manav Singh, Managing Director of Club One Air, who added that the company is also exploring the Airbus 320 aircraft for the same purpose. Singh indicated that there is a rising demand for special corporate jets with more space. Club One Air's fleet currently comprises nine aircraft including, five executive Citation jets, two Augusta helicopters, a turboprop King Air 200 and one Eurocopter EC 130. The company plans to add an additional 11 aircraft by end 2006, and to expand its fleet to 50 aircraft by end 2007. Club One Air offers flying facilities to almost 400 airports across India. (9 March 2006)

Demand for Pilots:
Demand for pilots has soared in the Indian aviation market due to the constantly increasing number of airlines. However, no commander pilot has applied to Alliance Air in response to an advertisement released in December 2005. (9 March 2006)

India-Australia Agreement Revised:
The agreement will open the sky between the two nations, enhancing the number of air services to a significant extent. The designated airlines will offer agreed number of services on agreed routes between the two countries. (9 March 2006)

Battle for the Indian Skies:
With 400 aircraft orders in the recent past, global manufacturers such as Boeing, Airbus and ATR as well as engine makers such as GE/CFM and IAE have all the reasons to woo the Indian airline operators. Airbus claims to have sold 1,111 aircrafts in 2005, out of which firm Indian orders were 220. Boeing, on the other hand, sold 1002 aircrafts, of which firm Indian orders were 98. (8 March 2006)

Very Light Jets:
The Federal Aviation Adiministration predicts that about 4,500 very light jets, also known as VLJ's or microjets, will be in service by 2016. Besides Adam Aircraft, another top player in this market is Eclipse Aviation, which is marketing a very light jet. Other players include Cessna and Embraer. VLJs or microjets are little, fuel-efficient, four-to-six seat aircraft with ranges of about 1,200 miles and price tags in the US $1.8 million to US $2.4 million range.
(8 March 2006)

Chennai Airport:
The prevailing aviation boom in India has favored Chennai airport the most. Chennai airport’s total passenger traffic (domestic and international) grew by 23.7% in 2004-05, compared to New Delhi’s 23% and Mumbai’s 17.9%. (7 March 2006)

Modernization of Airports:
The contracts for the modernisation of the Delhi and Mumbai airports were awarded recently. The consortium of the GMR Group and Germany-based Fraport has bagged the right to operate, manage and develop the Delhi airport. The GVK-Airports Company of South Africa has received the rights to modernise the Mumbai airport. The modernisation of these airports will not only give a fillip to the aviation sector, but is also likely to trigger similar initiatives.
(7 March 2006)

Growth Projected:
Global airplane and engine manufacturers are trying to cope with an unprecedented rush of orders from India. According to a recent estimate, Indian airline companies had placed orders for over 400 aircraft last year. As domestic and international passenger traffic is projected to grow at 25 percent and 15 percent year-on-year, respectively, there is a pressing need for more airplanes. India's current aircraft base of 235 is set to go up to 500 by 2010.
(7 March 2006)

Bangalore Airport:
Bangalore International Airport Ltd. (BIAL) and an Indian Oil-led consortium have partnered to set up an aviation fuel facility at the new airport coming up at Devanahalli. The consortium plans to invest Rs. 900 million in the 20-year contract. (6 March 2006)

Bhubaneshwar Airport Expansion:
Carriers like Airbus 300 will now be able to land at the Biju Patnaik Airport at Bhubaneshwar. Long-awaited expansion of the airport is expected to be over by April 2006. The airport's runway will be expanded by 7,500 square feet, providing aircraft with a capacity of 347 passengers the ability to land at the airport. Talks are on with a number of airlines like Air One, Air Sahara, Kingfisher and Spice Jet to operate in the state. (6 March 2006)

Air Deccan:
Air Deccan, under the aegis of Deccan Lanka Pvt. Ltd. (DALPL), a joint venture between Sri Lankan and Deccan Airlines will take its first international flight within the next four to six months. The airline will initially connect Colombo to Indian destinations, and later to other destinations in the Middle East and South East Asia. (6 March 2006)

Aircraft Leasing:
With many new Indian airlines commencing operations, aircraft leasing companies are taking active interest in India. Today, fourteen international aircraft lessors have established operations in India. (4 March 2006)

Demand Estimates:
Most air frame manufacturers advise that they have not fully estimated the potential of the Indian market as new air carriers are constantly generating new demand. Airbus estimate that by 2023 there will be a market for 570 aircraft in India worth over US$ 50 billion. Airbus also indicate that these estimates may have to be revised upwards. (4 March 2006)

Growth Forecasts:
In 2005, the civil aviation market grew by 25 percent and the Centre for Asia Pacific Aviation (CAPA) expects a growth rate of 20-25 percent for the next three years. (4 March 2006)