We are the only firm in India representing both fixed-wing and rotary-wing OEMs in India
In an exclusive conversation with Aviation World, Sudhir S. Rajeshirke, President – Aerospace at Jubilant Enpro Pvt. Ltd. shares insight on aircraft management reform, regional turboprops and the coming HEMS market. Excerpts… AW: Help us understand the role of Jubilant in representing two global OEMs in a market like India, and how has that role evolved? A: Jubilant’s aerospace business has represented OEMs since 1995 and now we represent top aerospace brands such as Bell Flight and Textron Aviation in India. As far as I am aware, we are the only firm in India representing both fixed-wing and rotary-wing OEMs in India. We front-end customer relationships right from the time they first engage with us on assessing the right aircraft for them through the entire life cycle of the product. Our key role is to develop market and ecosystem for an eventual sale of aircraft in India. When a customer is ready to take delivery, we ensure that the pilots, maintenance infrastructure, training, spares and other support systems are available for a seamless induction and operation of Textron and Bell aircraft in India. In addition, by taking active role in leading industry bodies, we work in development of aviation policies that are conducive to the growth of business aviation in India. AW: The Ministry of Civil Aviation and DGCA have been working on enabling provisions for aircraft management, and eventually for shared ownership. You have argued for this for the better part of a decade. What would be likely impact when the changes come through? A: Today, a huge hassle for any aircraft customer, typically the companies, State Governments, large institutions, is they have to start and operate an aviation company which is outside their core domain expertise. They have to hire flight crew, engage maintenance agency and carry out quality, procurement, regulatory activities. This is a huge deterrent as large liabilities are involved. Further, due to complex structuring, customers don’t receive depreciation benefits. That’s a huge financial loss for an expensive asset. Under an aircraft management model, a professional entity spreads crew, quality systems and administrative capability across a fleet. This model separates the ownership and operation between two parties. The customer gets ownership and depreciation benefits, the aircraft management company provides professional aviation services, which is it’s core expertise. Both win. Secondly, the regulator’s job gets easier. Today the DGCA has to oversee a very large number of small operators, many holding one or two aircraft, each with its own systems. That is an enormous supervisory burden on an organization that is already stretched. If a professional aircraft management service provider holds operational and compliance responsibility for several aircraft, the regulator monitors one competent entity instead of many uneven ones. That is better for safety oversight. Thirdly, aircraft management regulations will lay the foundation for aircraft fractional ownership. It is better that these are bought sequentially and not simultaneously as you cannot attempt the second without having proved the first. AW: Turning to regional connectivity, how do the Cessna Caravan and SkyCourier fit India’s requirement? A: The Ministry of Civil Aviation’s UDAN’s Regional Connectivity Scheme succeeded in upgrading tier-2 and tier-3 airport infrastructure and in making air travel affordable on routes that were never served before. However, two major challenges still exist. Firstly, airlines need to offer a price that’s affordable at even subsidized levels. Secondly, planes, need to fly at least half full for profitable operations. These challenges have impacted airlines to serve profitably on aircraft that have more than 70 plus seats but need to serve short-thin routes. The economics don’t work. The Grand Caravan EX is built precisely for that. It carries up to ten passengers and an airline is able to fill the aircraft on almost all routes. The cost of acquisition and operation helps airlines using Caravan become profitable on RCS routes. India One Air has been an exemplary example. They built a business model on short-thin routes in North East region and opened up access to locations that were previously unserved in the region. Another new operator Megamax Aviation will be launching services next year with Grand Caravan aircraft thus making it an obvious choice for RCS operators. The SkyCourier operates a notch above. It is a twin-engine turboprop that carries between 15 and 19 passengers, including cargo combination versions. For India, e-commerce and pharmaceutical logistics are pushing volume into tier-2 and tier-3 cities faster than the feeder air-cargo network has developed. A twin-engine aircraft with containerized loading and low operating cost is a very sensible answer to that. AW: You have also spoken about HEMS and search and rescue (SAR). Where is that market today? A: India is, to my knowledge, the only major economy still substantially under-served by air medical and search and rescue services. The Ministry of Civil Aviation has made a start: The Sanjeevani pilot, with a helicopter stationed at AIIMS Rishikesh was an important proof of concept. But pilot projects need scale. For HEMS to become a genuine industry in India, three things need to be resolved. The first is the funding model. Somebody has to pay for the helicopter acquisition and missions. In mature markets that is a combination of insurance reimbursement, state health budgets and subscription schemes. In India, the funding model is not yet developed. So we need to enable hospital chains to pay for acquisition and have management companies to operate HEMS missions. The second is infrastructure and air congestion within cities for HEMS operations. The third is regulatory and airspace clarity specific to the mission. HEMS and SAR operate under time pressure and need to occur at a moment’s notice and not wait for any approvals. Initiating search and rescue (SAR) missions need inter-ministerial coordination framework to carry out widespread SAR missions that save lives in times of emergencies such as floods, earthquakes and other natural calamities. AW: How does Bell position itself in that segment? A: Bell has been at the forefront in championing the cause of HEMS and SAR
