To analyze the Indian Commercial Aerospace market for Cobham India Pvt. Ltd

BySatyendra Shukla

11P224

Management Development InstituteGurgaon 122 001

May, 2012

1

To analyze the Indian Commercial Aerospace market for Cobham India Pvt. Ltd

By

Satyendra Shukla

Under the guidance of

Mr. Lee GriffithsDirector IndiaCobham India Pvt. Ltd.

Management Development InstituteGurgaon 122 001

May, 2012

2

Executive Summary

The project aims at to analyze the Indian Aerospace Industry and try to find out through secondary research the growth prospective of the same. Cobham has many capabilities that could be exploited to supply equipments and spares for the MRO (maintenance, repair and overhaul) industry in India.

So we used the various reports and predictions available at the websites of Airport Authority of India, Directorate General of Civil Aviation, Ministry of Civil Aviation and websites of various airlines and MRO companies to understand the market dynamics. We came across various difficulties faced by them and also saw various opportunities lurking round the corner.

We tried to estimate the fleet size of various airlines and the expected growth in next five years. Also the focus was given on the Non-Scheduled operators as their numbers is rising at a lightening pace. We also had the projections made by Ministry of civil aviation about the growth of passenger volumes in the future, and all the future growths were aligned to each other.

And all this growth in the commercial aerospace market will be a driving force for the MRO industry and hence market for Cobham will increase. Many foreign companies in MRO sector have already started to enter Indian market through joint-ventures with domestic firms.

After analyzing the future of MRO industry, we tried to lay a path for Cobham for its future endeavors in Indian Commercial Aerospace market.

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ContentsExecutive Summary......................................................................................................................................................3

Introduction.................................................................................................................................................................5

Project Objective..........................................................................................................................................................6

Commercial Aerospace in India....................................................................................................................................7

Cobham Capabilities in Commercial Aerospace.......................................................................................................8

Facts & Figures on Indian Aviation.........................................................................................................................10

Fleet Size of Schedule Operators (Manufacture wise)...........................................................................................11

Fleet Size of Scheduled Operators over the Year...................................................................................................12

Orders in Pipeline..................................................................................................................................................13

Passenger Movement by Scheduled Operator......................................................................................................14

Fleet Size of Non-Scheduled Operators.................................................................................................................15

Fleet Size of Non-Scheduled Operators over the Year...........................................................................................16

Passenger Handling by NSOP.................................................................................................................................17

Cargo Handling by Scheduled Operator.................................................................................................................18

Airport Penetration in India...................................................................................................................................19

Types of MRO........................................................................................................................................................20

Types of MRO Check..............................................................................................................................................21

MRO in India..............................................................................................................................................................22

India as the potential to be a MRO hub.................................................................................................................22

Hindrances to Growth...........................................................................................................................................23

Comparison of MRO Industry in India & Abroad...................................................................................................24

Changes Proposed in MRO Policy in 12th Five Year Plan........................................................................................25

New Partnership in MRO Sector (Recent Joint Ventures)......................................................................................26

MRO Facility completed in 11th Year Plan..............................................................................................................26

Certifications by DGCA – Categories......................................................................................................................27

DGCA - Category & Rating Category - CAR 145 and CAR M Sub Part ‘F’ Approval.................................................27

Major MRO Companies in India.............................................................................................................................28

Conclusion................................................................................................................................................................. 29

MRO Sectors to Expand Significantly.................................................................................................................29

Road Map Ahead...............................................................................................................................................29

Investment in MRO Sector will require at least 4-5 years for Return................................................................30

Sources......................................................................................................................................................................31

4

Introduction

Cobham is UK based company and opened its liaison office in New Delhi in 2010. It operates under following 3 different verticals

1) Cobham Aerospace & Security Divisiona. Cobham Aerospace Communicationb. Cobham Antenna Systemc. Cobham Tactical Communication & Surveillance

2) Cobham Defence System Divisiona. Cobham Sensor System

3) Cobham Mission System Divisiona. Cobham Aviation Servicesb. Cobham Life Supportc. Cobham Mission Equipment

With the recent change in Defense Procurement Policy and the new offset policy in India, the defense sector is now open for the private players. Also Foreign direct investment in defense sector is now allowed up to 26% (currently both public and private firms of Indian don’t have the capabilities and technology for producing cutting edge military equipments). Also in recent few years India has increased its Defense Budget at a surprising rate (grown at a CAGR of 15% over last 5 years, from USD$ 22.4 Million in 2008-09 to USD$ 38.9 currently) and Internal Security Budget (expected to grow to USD $25.6 Million by 2016-17 from USD $ 18.4 currently).

With the economic slowdown in Europe & USA and a saturating market in the west, foreign firms started looking towards Asia. Currently India is largest importer of Defense product (In last 5 years India accounted for 10% of the Global import and India procures 70% of their equipment from abroad). With changing policy in India, recent trends and increase in military budget, it made Cobham and other firms start their operations in India.

5

Project Objective

Cobham Plc gets its major chunk of its revenues (72%) from Defense sector and only 28% comes from commercial sector. Also the major markets of Cobham are highly concentrated in only four nations, namely USA (61%), Mainland Europe (12%), Australia (10%) and UK (9%). ‘Rest of world’ as a market, accounts for only 9% of the total revenues of Cobham Plc. So in order to reduce dependence on defense market and increase the share of commercial sector along with increase its presence in the ‘Rest of world’, we tried to analyze Indian Commercial Aerospace industry as a prospective market for Cobham.

We analyzed the Indian Aerospace market in the light of its growing passenger traffic volume and the increasing fleet size of the airlines. And hence the growth of the MRO (maintenance, overhaul and repair) industries is implied. The MRO companies are the direct customers for the Cobham capabilities in the commercial aerospace market. We tried to look at various difficulties that are faced by Indian MRO industry and also the opportunities to come and on basis of that we concluded the future course that Cobham should follow to enter the Indian commercial Aerospace Industry.

6

Commercial Aerospace in India

The economic slowdown of 2008 has hit the global aviation severely with many airlines in USA and Europe in red mainly because of decrease in passenger volume, increase in fuel cost and increase in competition from low cost airlines. Despite the recovery in the passenger traffic volume after the slowdown, global aviation industry is still in recovery phase.

In India, aviation industry continues to looks promising despite of slowdown. Currently India is the 9th largest civil aviation in the world in terms of passenger traffic volume. It is poised to become 3rd largest by the end of this decade. Liberalization policy in mid nineties in Indian aviation sector led to this significant growth which saw coming of private airlines in India. This was also supported by strong demand from domestic passengers because of increase in purchasing power of middle class and attractive fares being offered by low cost airlines. In addition, Government has increased its focus of modernization of non-metro airport, opening up new airports and international routes.

Unfortunately since 2006, most of the Indian Airline companies are in red, mainly because of the increase in the Aviation Turbine Fuel, rising labor cost, increase in fleet size and intense competition among low cost airline companies. Despite of Indian airlines in red, the industry remains robust. Currently India’s civil aviation passenger growth is highest in the world followed by Brazil.

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Cobham Capabilities in Commercial Aerospace

SATCOM Systems & Airborne Information Management

• SATCOM Antenna

• Hardware for in-flight

• Connectivity

• Airborne Information

• Management Systems for Cabin and Cockpit

Audio Management Systems

• Audio Control Panels

• Radio Management Panels

• SELCAL Decoders

• Cabin Audio Systems

• Passenger Announcement Systems

• Control Panels & Displays

Oxygen Systems

• Oxygen Bottles

• Oxygen Actuators & Valves

• OBIGGS

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Aircraft external Structures, Antennas & Accessories

• Composite Radomes

• Structural Repairs

• Antennas

• Static Dischargers

• Aircraft lighting & Clocks

Engineering Services

• STC Certification Capability

• Aircraft Integration

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Facts & Figures on Indian Aviation

1. Indian Aviation Market is the 9th largest civil aviation market in the world as per the passenger traffic volume

2. It is fastest growing aviation market and poised to emerge as the 3rd largest aviation market by the end of this decade

3. Passenger handling has capacity increased from 72 million (FY 06) to over 220 million ( FY 11 )

4. Domestic traffic will grow at 12%, from 106 Million in FY-11 to 209 million in FY-17

5. International traffic will grow at 8%, from 38 Million in FY-11 to 60 Million in FY-17

6. Passenger terminal capacity to be 370 million by 2017 across all airports as per investment plan

7. Cargo handling capacity has risen from 0.5 million MT (FY 06) to 3.3 million MT (FY 11)

8. 20 domestic airports have been converted for international operations in last few years

9. Additional requirement of 30 functional airport by 2017 and total of 180 functional airport in next 10 years as against 68 operational airports currently

10. 35 Non-metro airport identified in last few years for modernization at a cost of Rs 4500 crore, work expected to be completed by end of FY 12.

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Fleet Size of Schedule Operators (Manufacture wise)

Quikjet Cargo Airlines Pvt. Ltd.

Deccan Cargo & Express Logistics Pvt. Ltd.

Blue Dart Aviation Ltd (Cargo).

Go Airlines (India) Pvt. Ltd.

Jet Lite (India) Ltd.

Air India Charters Ltd.

M/s Airline Allied Services Ltd.

SpiceJet Ltd.

Inter Globe Aviation Pvt. Ltd.,(Indigo)

Kingfisher Airlines Ltd.

Jet Airways

Air India Ltd.

0 20 40 60 80 100 120

1

2

7

25

20

7

19

22

11

33

64

25

12

51

36

12

82

4

7

AirbusBoeingBombardierATR

Manufacturer Number of Planes(March 2012)

Airbus 193

ATR 55

Boeing 181

Bombardier 11

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Fleet Size of Scheduled Operators over the Year

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-122020*

100200300400500600700800900

10001100

440

1000

Fleet Size

As per projection by Boeing, Indian Airlines will require 1320 new Aircrafts by 2030 As per projection by Airbus, Indian Airlines will require 1043 new airlines by 2030

o 860 Fleet Expansiono 160 Replacemento 23 Freights

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Orders in Pipeline

Airline Number Expected DeliveryIndigo 44 Airbus By 2016

180 Airbus Between 2016-2025Jet Airways 10 Airbus By 2015

10 Boeing By 201430 Boeing By 2015

Go Air 2 Airbus In 201372 Airbus 2015 Onwards ( 15 per year)

SpiceJet 30 Boeing Between 2014-20198 Bombardier By June 2012

Kingfisher 5 Airbus By 201420 Airbus By 201567 Airbus By 2016

Air India 27 Boeing From May 2012

Indigo

Jet Airways

GoAir

Spice Jet

Kingfisher

Air India

0 50 100 150 200 250

224

10

74

92

40

30

27

8

AirbusBoeingBombardier

Airbus Boeing Bombardier400 97 8

13

Passenger Movement by Scheduled Operator

2007-08 2008-09 2009-10 2010-11 2011-12 * 2017-180

50

100

150

200

250

300

111.87

209

37.24

60

149.11

269

Domestic InternationalTotal

In M

illio

n

14

Fleet Size of Non-Scheduled Operators

Air Charter Services Pvt. Ltd.

Himalayan Heli Services P. Ltd.

India Flysafe Aviation Ltd.

Mesco Airlines Ltd.

OSS Air Management Pvt. Ltd

Reliance Transport & Travels Ltd.

Span Air Pvt Ltd.

AR Airways (P) Ltd.

Religare Aviation Ltd.

Reliance Commercial Dealers Ltd.

Deccan Charters Ltd.

Global Vectra Helicorp Ltd

Pawan Hans Helicopters Ltd.

0 5 10 15 20 25 30 35 40 45 50

6

3

1

3

4

8

9

7

3

6

3

5

6

3

2

2

3

10

24

48

Fixed WingRotary Wing

*NSOP’s with fleet size of more than 5 are included in above bar –chart (as of March 2012)

15

Fleet Size of Non-Scheduled Operators over the Year

2006 2007 2008 2009 2010 2011 2012 FY 170

20

40

60

80

100

120

140

160

0

100

200

300

400

500

600

700

800

900

135

393

850

No

. of

NSO

P

No

. o

f A

ircr

aft w

ith

No

n-

Sch

ed

ule

Op

er

-at

ors

Break up of Non Schedule Operator Fleet for FY 17

300 Business Jets

300 Small Planes

250 Helicopters

16

Passenger Handling by NSOP

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2016-17*700

900

1100

1300

1500

1700

1900

2100

1380

1966

Passenger Handled

In 0

00’s

17

Cargo Handling by Scheduled Operator

2007-08 2008-09 2009-10 2010-11 2011-12*0

500

1000

1500

2000

2500

570740

1150

1340

1720

2080

Domestic

International

Total

In T

hous

and

Tone

s

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Airport Penetration in India

Chhattisgarh

Delhi

Lakshya Dweep

Meghalaya

Mizoram

Nagaland

Orissa

Pudducherry

Tripura

Punjab

Rajasthan

Uttar Pradesh

Uttrakhand

West Bengal

Jharkhand

Himachal Pradesh

Kerala

Bihar

Assam

Madhya Pradesh

Maharashtra

Andhra Pradesh

Karnataka

Tamil Nadu

Gujarat

0 1 2 3 4 5 6 7

111111111

222222

333

44

5666

7

No. of Public Airports

Airports operated and maintained by Airport Authority of India are only considered.

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Types of MRO

Airframe Heavy Maintenance:

A detail inspection of the airframe and component, including any applicable corrosion prevention program, comprehensive structural inspection and overhaul of the aircraft.

Engine Overhaul:

Off-wing repair and replacement of parts to restore the engine to designed operational condition to guidelines established by the engine manufacturer. Typically the engine is disassembled, inspected, parts are repaired or replaced as necessary, reassembled and tested.

Component MRO:

Maintenance including repair and overhaul of the aircraft component, which provide the basic functionality for aircraft control and navigation, communication, control surface movement, cabin air conditioning electric power and braking.

Line Maintenance:

Light, regular maintenance check-up carried out to ensure the aircraft is fit for flight including trouble- shooting, defect rectification, overnight maintenance and component replacement.

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Types of MRO Check

A Check -- Done after 60 flight hours (Once a week)

An amplified pre flight visual inspection of planes power plants, avionics and accessories (Average 10-20 man hours)

B Check – Done after 300-500 flight hours ( Once a month)

Always performed in Hangar

Inspection for preventive maintenance (exterior wash, engine oil), Oils filters are removed & checked, parts are lubricated & carefully examined (100-300 man hrs)

C Check – Done after 3500-4000 flight hours ( 12-18 months)

Components are repaired, major internal mechanisms are tested, flights controls are calibrated. Other tests include minor structural inspections, compressor, flight control rigging tests, engine, compressor washes and post-check flight tests

20000 man hours (4-6 week of duration)

Performed at Airline’s heavy maintenance & engineering centre

D Check – Done after 20000 flight hours ( 6-8 years)

Cabin interiors (including seats, galleys, lavatories, cockpit, furnishings, headliners and sidewalls) are removed to enable careful structural inspections Flights controls are examined and the fuel system is probed for leaks and cracks. The aircraft is stripped to its shell and rebuilt to return it to its original configuration.

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MRO in India

Indian Commercial Aviation MRO market is currently valued at USD $800 million

Expected to grow to USD $1.06 Billion by 2015 & $ 2.5 Billion by 2020

India as the potential to be a MRO hub

Increasing Aircraft Fleet: As per projection by Boeing India will require another 1320 aircraft, as per Airbus India will require 1043 aircraft by 2030. As per the 12 th five years plan Indian Airlines fleet size will grow to 1000 from 440 currently.

Location Advantage: India is located in between of Europe & South-East Asia routes and South East Asia is poised to be the next global hub.

Fastest growing Aviation Market in the world: Currently India is 9 th largest aviation market and is about to become 3rd largest be the end of next decade. It is the largest growing market followed by Brazil

Modernization of Airports: Various initiatives has been taken up by Government for modernization of airport. In 2007, government identified 35 non-metros airports for development. Development of 26 airports has been completed and remaining is expected will be completed by end of FY12. 20 airports have been made functional for International operators in last few years.

Upcoming of new Airports: Greenfield Development of Airport at Bangalore & Hyderabad. Upcoming of airports at Navi Mumbai, Noida, Goa, etc.

Liberal Civil Aviation & Special Economic Zones (SEZ) policies - 100 per cent FDI in MRO sector

Manpower cost competitiveness - labour costs in India are around $30-35 per man-hour, compared to $55-60 in South-East Asia and the Middle East and even higher in the US and Europe

Low cost airlines prefers servicing of aircrafts locally to save time and cost

No in-house capabilities currently beyond line maintenance

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Hindrances to Growth

Though the returns of all airlines (except for Indigo) are in RED but with proposed change in government policy and macroeconomic factors will boost the MRO industry in India

Reason for loss can be accounted to increase in price of ATF in India( price increased by 45% between 2010-2011)

Location Price/kilolitre (USD) As of March 2012

India 1400

Singapore 825

Bangkok 880

Kuala Lumpur 810

Dubai 840

Shortage of MRO training institute in India

Fleets are all brand new (will take a few years for them to spend long hours in hangars)

Expensive hangar space (A small hangar in Bangalore HAL airport cost Rs 10 Crore a year which comes out to be approximately $ 500 an hour)

Private airlines entered into long-term service agreements with foreign MRO players

Certification - by the Directorate General of Civil Aviation (DGCA), is not comparable with mandatory European & American standards (EASA & FAA)

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Comparison of MRO Industry in India & Abroad

Particulars Indian MRO Foreign MROLabor 100 100Spares 100 100Sub Total 200 200Avg. Custom Duty @ 24% (on Spares & Materials)

24.00 --

Octroi @ 4% 4.96 --Vat @ 12.5% (On Aircraft Spares)

16.12 --

Service Tax @ 10.3% (On Labor) 10.3 --Airport Royalties @ 13% 26.00 --Grand Total 281.38 200.00

High Tax Regime in India is considered as a major hindrance of the MRO Industry Due to this higher Tax, Aircraft Servicing in India is 40%-50% more expensive than

competing MRO organization in the South Asia Region

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Changes Proposed in MRO Policy in 12th Five Year Plan

Elimination of discriminatory taxation policy for domestic MRO players: Due to discrimination policy Indian MRO firms have to suffer an additional burden of 40% over foreign MRO. This led Indian carriers to take their fleet for services in Singapore, Indonesia & Dubai as it is cost effective. This taxation policy resulted in growth of MRO firms in competing countries

Abolition of import duties for spare parts: Due to high import duties (not applicable for foreign players) Indian players are unable to maintain inventory. This leads to grounding of aircrafts for longer period. Abolition of this tax will cut time required for servicing of Aircrafts.

Aerospace SEZs such as the ones coming up near Nagpur, Belgaum and Hyderabad to be considered for exemption from MAT (Budget 2011 has imposed a MAT of 18.5% on all SEZs). This will reduce operating cost of MRO firms and hence will promote MRO firms

Streamlining of licensing and security clearance procedures:

Impetus on MRO joint ventures: To promote joint ventures between MRO service providers and airlines for sustained business and cost advantages.

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New Partnership in MRO Sector (Recent Joint Ventures)

Foreign Company Indian Company PlaceBoeing Air India NagpurMalaysian Aerospace Engineering

GMR Hyderabad

Lufthansa Technik GMR HyderabadEADS Air India DelhiAir France KLM Max Aerospace MumbaiSabena Taneja Aerospace BangalorePratt & Whitney HAL Bangalore

MRO Facility completed in 11th Year Plan

Company Name Location

Thales Avionics Maintenance GurgaonAirworks Facility Hosur

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Certifications by DGCA – Categories

CategoryCAR 145 Approved Aircraft Maintenance OrganisationsCAR M Sub Part F Maintenance OrganisationCAR M Sub Part G Continuing Airworthiness Management

Organisation CAR Sec 2 Series E PART VI Category E : Fuel Lubricants and special products CAR Sec 2 Series E PART VIII Category G : AME Training SchoolsCAR 21 Sub Part G Approved Production Organisation for products,

parts and appliances

DGCA - Category & Rating Category - CAR 145 and CAR M Sub Part ‘F’ ApprovalClass RatingAircraft A1 Aero planes above 5700 Kg

A2 Aero planes 5700 Kg & below A3 Helicopters A4 Aircrafts other than A1,A2,A3

Engines B1 Turbine B2 Piston B3 APU

Specialized Services D1 Non-Destructive Testing Component other than completeEngine/Apu

C1 Air Cond & Pass C2 Auto Pilot C3 Communication & Navigation C4 Doors – Hatches C5 Electrical Power C6 Equipments C7 Engine – APU C8 Flight Control C9 Fuel-Airframe C10 Helicopter – Rotors C11 Helicopter – Trans C12 Hydraulic C13 Instruments C14 Landing Gears C15 Oxygen C16 Propellers C17 Pneumatic C18 Ice/Rain/Fire Protection C19 Windows C20 Structural

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Major MRO Companies in India

1. Air Works India (Engineering) Pvt Ltd

2. Aircraft Telecom Maintenance Agency

3. BLUE DART Aviation Services

4. Deccan Charters

5. GMR Aviation Pvt. Ltd.

6. Hindustan Aeronautics Limited

7. Indamer Company Pvt Ltd

8. Instrulab

9. JET LITE (India) Limited

10. JET AIRWAYS (India) Limited

11. KINGFISHER AIRLINES

12. Max AeroSpace & Aviation Ltd

13. NACIL - Air India

14. PAWAN HANS Helicopters Ltd

15. Shaurya Aeronautics Pvt. Ltd

16. Taneja Aerospace & Aviation – TAAL

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Conclusion

MRO Sectors to Expand Significantly

1) Increasing fleet size of Indian Airlines: With increase in fleet size of airlines in India, MRO sector will get a significantly boost. Fleet size is expected to grow to 1000 by FY 20 from current strength of 440. As per Boeing and Airbus projection, India will require new 1320 & 1043 aircraft respectively by FY 30

2) Increase in modernization of airports: With increase in modernization of airports, aviation industry will grow at significant rate. This will result of coming of more private airlines and increase in fleet size.

3) Increase in passenger Traffic: With increase in passenger traffic, aviation industry is poised to grow and hence MRO sector. Domestic passenger traffic is expected to grow by 12% and International traffic by 8% for over next 5 years.

4) Availability of technical manpower at relatively low cost5) Coming up of Aerospace SEZ at Nagpur (Mihan SEZ) & Hyderabad6) Changes proposed in 12th year annual plan: The changes mainly aims at removing taxes imposed

on spares and other services of MRO sector as a result of which airlines has to spend 40-50% more in India as compare with MRO service in other country. Once this policy comes in effect Indian MRO sector will be comparable to other MRO sectors in neighbouring countries.

Road Map Ahead

1) To have MRO tie-ups with Airlines: This is to help to sustain business.2) Need to have tie-ups with at least 2-3 airlines: This is because at least 60- 70 airlines are

required for a good amount of profit. Currently Indian Airlines have currently only 440 airlines and most of them are new. So it will take a few more years for aircraft to spend longer hours at hanger

a. Indigo (Long Term): As of Feb 2012, Indigo has 56 fleets with an average age of 2.3 years. It is currently expected to receive 224 more Airbus aircrafts. In short term, from Indigo much can’t be expected in terms of MRO. In long term Indigo will play an important role as it will have one of the largest fleet among Indian Airlines as its fleet age will increase.

b. SpiceJet (Short Term) – As of Jan 2012, SpiceJet has a fleet size of 40 aircrafts with an average age of 4.6 years. In short term SpiceJet is a good option.

c. Jet Airways (Short Term) – As of May 2011, JetAirways has a fleet size of 100 aircrafts with an average age of 5.4 years. In short term Jet Airways is a good option.

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d. GoAir – As of Jan 2012, GoAir has a fleet size of 72 with an average age of 2.7 years. Hence GoAir is not a good option for tie –up.

e. Kingfisher – As of Jan 2012, Kingfisher has a fleet size of 63 aircrafts with an average age of 4.5 years. Currently it has ordered for 92 aircrafts. In long term and short term it can be good option. As currently it is going through financial crisis, wait and watch policy should be applied.

f. Air India & its Subsidiaries (151) – As of Jan 2012, Air India has a fleet size of 151 aircrafts with an average age of approximately around 10 years. Can be a good option, but since it has developed its own MRO facility in JV with Boeing & Airbus (currently in talks) so tie-ups won’t be possible

Investment in MRO Sector will require at least 4-5 years for Return

1) Indian fleets are currently new and would spend fewer hours in hanger. For this to change it will take at least 4-5 years.

2) Currently fleet size is relatively small and will grow to a substantial number in next few years. (Major Airline in the world have more than 500 aircrafts individually, currently total fleet size of Indian Airlines is around 440. By 2020 fleet size of commercial scheduled operators are expected to reach to strength of 1000).

3) Shortage of MRO training institute. It will take few years for institute to flourish.4) Currently private airlines are in long term service agreement with Foreign MRO players which is

expected to expire in 5-10 years down the line.

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Sources

1) Ministry of Civil Aviation of Indiaa. http://civilaviation.gov.in/cs/groups/public/documents/newsandupdates/

moca_001377.pdfb. http://civilaviation.gov.in/MocaEx/faces/monthly.jspx?

_afrLoop=790485091897260&_afrWindowMode=0&_adf.ctrl-state=gbxu8udgq_14c. http://civilaviation.gov.in/MocaEx/faces/annual.jspx?

_afrLoop=790475327113839&_afrWindowMode=0&_adf.ctrl-state=gbxu8udgq_19d. http://civilaviation.gov.in/MocaEx/faces/outcome.jspx?

_afrLoop=790480401196041&_afrWindowMode=0&_adf.ctrl-state=gbxu8udgq_24e. http://civilaviation.gov.in/MocaEx/faces/annualplan.jspx?

_afrLoop=790480530553217&_afrWindowMode=0&_adf.ctrl-state=gbxu8udgq_34

2) Directorate General of Civil Aviation, India (DGCA)a. http://www.dgca.nic.in/firms/Bangalore.pdf b. http://www.dgca.nic.in/firms/Eastern.pdf c. http://www.dgca.nic.in/firms/Northern.pdf d. http://www.dgca.nic.in/firms/Southern.pdf e. http://www.dgca.nic.in/firms/Western.pdf f. http://www.dgca.nic.in/operator/sch-ind.htm g. http://www.dgca.nic.in/operator/nonsch-ind.htm h. http://www.dgca.nic.in/pub/pub-ind.htm#monthly i. http://www.dgca.nic.in/pub/pub-ind.htm#yearly j. http://www.dgca.nic.in/pub/pub-ind.htm#international k. http://www.dgca.nic.in/pub/Pubb09-10/pub0910-index.htm l. http://www.dgca.nic.in/pub/pub08-09/pub0809-index.htm m. http://www.dgca.nic.in/caris/count_class.asp n. http://www.dgca.nic.in/caris/count_acname.asp

3) Airport Authority of Indiaa. http://www.aai.aero/allAirports/airports.jsp b. http://www.aai.aero/public_notices/aaisite_test/annual_reports.jsp

4) Wikipediaa. http://en.wikipedia.org/wiki/IndiGo b. http://en.wikipedia.org/wiki/Jet_Airways c. http://en.wikipedia.org/wiki/SpiceJet d. http://en.wikipedia.org/wiki/GoAir e. http://en.wikipedia.org/wiki/Kingfisher_Airlines

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f. http://en.wikipedia.org/wiki/Air_India 5) Websites of Individual Airlines in India (Public & Private)

a. http://book.goindigo.in/skylights/cgi-bin/skylights.cgi?module=C3&page=FLEET b. http://book.goindigo.in/skylights/cgi-bin/skylights.cgi?module=C3&page=PRESS c. http://www.spicejet.com/pdf/2010-11Annual%20Report.pdf d. http://www.spicejet.com/pdf/2009-10Annual%20Report.pdf e. http://www.spicejet.com/pdf/2008-09Annual%20Report.pdf f. http://www.spicejet.com/pdf/BSE%20-%20Q3-12.pdf g. http://www.spicejet.com/pdf/BSE%20-%20Q2-12.pdf h. http://www.spicejet.com/pdf/BSE%20-%20Q1-12.pdf i. http://www.spicejet.com/fleet.asp j. http://www.flykingfisher.com/about-us/our-fleet.aspx k. http://www.theubgroup.com/finance_annual_report.aspx?section=4 l. http://www.jetairways.com/EN/IN/InvestorRelations/financials.aspx m. http://www.goair.in/aboutus.aspx n. https://www.pawanhans.co.in/site/home.aspx

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