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Using AI to transform aircraft maintenance and operations — a story of days to engine failure

At a modern airline operations control centre, predictive maintenance systems now aspire to flag early warnings based on real-time engine health data. When a forecast indicates that an engine is likely to exceed performance limits within a defined number of days, maintenance planners can proactively adjust flight schedules, arrange for spare parts, or schedule shop visits in advance. What once triggered emergency responses or unscheduled groundings is now managed through data-driven foresight. This transformation reflects how predictive AI modelling has turned potential disruptions into planned maintenance activities, improving operational reliability and reducing cost without compromising safety. By Sanjay Deshmukh,COO, Findability Sciences Before AI: maintenance by pattern, gut, and schedule Fifteen years ago, an engine showing subtle changes in exhaust gas temperature margins or vibration signatures would generate a paper trail: a technician’s note on a line maintenance card, a call into TechOps, and a conservative defensive response — ground the aircraft if in doubt, or ferry it to a maintenance base the next time it could be scheduled. Preventive maintenance relied heavily on flight-hour or cycle-based schedules, inspections driven by OEM service bulletins, and human judgment informed by experience. This approach protected safety but was inefficient: unnecessary shop visits, emergency AOG events, and expensive part shipments were common. The limitations were structural: data lived in silos, sensor streams were high-volume but noisy, and no operational system translated complex telemetry into a simple operational decision such as “this engine needs a shop visit within X days.” That translation — days to failure — is what airlines now prize, because calendar days map directly to planning windows for crews, aircraft rotations and spare logistics. The shift: combining data, twins and AI The first practical step was not a model but instrumentation and integration: richer telemetry (temperature, pressure, spectral vibration), consistent logging of flight context (thrust settings, profiles), and a link to maintenance history and environmental feeds. OEMs and MROs invested in digital twins — virtual replicas of engines that run physics-informed simulations alongside live telemetry — so that patterns in sensor drift could be interpreted against expected physical behavior rather than treated as raw anomalies. Rolls-Royce and others have championed digital-twin programs that let engineers explore “what if” scenarios without turning a wrench. Once the data plumbing was in place, airlines piloted models that forecast remaining useful life (RUL) and — crucially for operations — converted that into days to failure: calendarized RUL that factors in flight schedules and utilization. Early models were statistical or tree-based and offered explainability at the cost of flexibility. Today’s state-of-the-art prognostics blends physics constraints with deep sequence architectures — combinations of CNN-LSTM with attention or transformer-like encoders — that can capture long-range temporal patterns in noisy telemetry and fuse them with maintenance logs and environmental modes. Academic work in 2024–2025 has demonstrated improvements in RUL accuracy using CNN–LSTM–Attention hybrids and multiscale transfer learning tailored for aeroengines. A concrete example: Air France–KLM’s operational experiment Air France–KLM’s recent move to accelerate AI across its operations highlights how a large carrier approaches adoption. In late 2024 the group announced partnerships to deploy generative and predictive AI across its data estate — a strategic step that explicitly names predictive maintenance as a target area. For a carrier that operates hundreds of aircraft across global networks, moving from hours-long analyses to near-real-time probabilistic forecasting materially changes the cadence of maintenance decisions. In practice, the airline’s prototype architecture mirrored the emerging industry pattern: an edge tier on aircraft performs low-latency anomaly detection and compresses high-frequency data; a cloud tier runs ensemble prognostics and digital-twin simulations; and a frontline dashboard surfaces a clear days-to-failure forecast with confidence bands and top contributing factors (e.g., rising core temperature during climb cycles, elevated particle ingestion on specific sectors). The OCC used this information to make graded decisions — limit dispatch to short sectors, pre-order parts for the next planned shop visit, or approve a non-urgent ferry to a maintenance base — turning uncertain emergencies into scheduled, auditable actions. Best practices that made it work Successful deployments share practical patterns: • Align forecasts to decisions. Build the model output to answer operational questions: if the decision is “can this aircraft depart tomorrow?”, then present probability of failure within 24–72 hours, not a raw RUL number. • Quantify uncertainty. Probability distributions, prediction intervals, and cost-weighted decision thresholds prevent overreaction to a single point estimate. Operators need to know both the most likely days-to-failure and the worst-case window. • Human-in-the-loop workflows. Use the AI as an advisor. Maintenance planners validate and override forecasts early in rollout; their feedback then becomes training signals for model recalibration. • Hybrid models for explainability. Blend physics-informed constraints with deep ML so that failure drivers link to physically meaningful phenomena — vital for certification and trust. • Data governance and interoperability. Standardized data exchange (OEM, MRO, airline) and careful privacy controls make federated improvements possible without sharing raw operational data. Air France–KLM’s partnerships reflect this need to keep control of data while leveraging cloud AI capabilities. Challenges that persist Not all is solved. Data quality and left-censoring (engines observed only after installation) complicate life-history modeling; true failures are rare, so training sets are imbalanced; and operations evolve — flight profiles, new routings, or maintenance practices create covariate drift that must be detected and handled. Moreover, the certification and safety assurance of AI-infused prognostics remains a conservative, resource-intensive step: regulators and safety managers require rigorous demonstrations of conservatism under uncertainty and robust behavior in edge cases. Academic and industry studies stress the need for continuous validation pipelines and scenario stress tests to address these issues. Benefits realized — and measured When the system works, benefits cascade. Airlines report fewer aircraft on ground events, better shop utilization, and lower logistics costs from fewer urgent part shipments. Delta, Lufthansa and others have publicly discussed multi-year programs to digitize TechOps and apply ML for predictive maintenance; case studies point to measurable reductions in unscheduled removals and time-to-repair when analytics are tied to operations. For Air France–KLM, the

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MODAIR : LEADING INDIA’S AVIATION TRAINING ECOSYSTEM

ModAir Aviation IFSC Pvt Ltd is spearheading a major shift in India’s aviation training ecosystem by enabling access to leased training aircraft through GIFT City, Gujarat. This forward-looking initiative not only strengthens the national aviation framework but also reflects the vision of the Prime Minister’s Viksit Bharat mission, emphasizing self-reliance, skill development, and global competitiveness. Headquartered in India’s only operational International Financial Services Centre, ModAir Aviation has emerged as one of the earliest and most dynamic adopters of GIFT City’s specialized aircraft leasing platform. The company has successfully pioneered leasing arrangements for flight training academies across the country, creating a new standard in operational efficiency and accessibility for aviation education. Through this model, ModAir has already inducted multiple modern trainer aircraft, which are now supporting active pilot training operations across established Flight Training Organizations (FTOs) in Jalgaon, Khajuraho, and Karnataka. By offering flight schools the ability to lease rather than purchase aircraft, the company has effectively bridged a long-standing financial and logistical gap in India’s pilot training infrastructure. Flight academies benefit from improved cash flow, expanded training capacities, and access to technologically advanced fleets—all of which contribute to more cost-effective and efficient training processes. ModAir’s approach redefines the economics of pilot education in India by lowering entry barriers for flight schools and ensuring students train on the latest generation of equipment. This aligns closely with national initiatives such as UDAN and AtmaNirbhar Bharat, both designed to foster connectivity, job creation, and self-sufficiency across the aviation value chain. The company’s mission directly supports the government’s strategic focus on building a globally recognized hub for aviation skill development, where Indian pilots are trained to international standards. Atul Jain, Director and Promoter of ModAir Aviation IFSC Pvt Ltd, expressed pride in the company’s contribution to national development. “We aim to empower India’s youth to become world-class pilots and innovators,” he said. “Through access to leased aircraft and helicopters, ModAir is nurturing the next generation of aviation professionals while strengthening India’s standing as a leader in flight training and leasing across Asia. Our presence in GIFT City underscores our belief in India’s potential as a global aviation hub.” Building upon this strong foundation, ModAir has set an ambitious goal to induct 20 additional trainer aircraft by the end of 2026. This will substantially enhance the availability of modern aircraft for pilot training across India’s growing network of academies. Through GIFT City’s internationally competitive ecosystem—offering tax efficiencies, streamlined regulations, and global financial access—ModAir continues to demonstrate how innovative leasing models can accelerate the modernization of Indian aviation. By making aircraft leasing accessible, transparent, and sustainable, ModAir Aviation IFSC Pvt Ltd is helping India achieve its goal of producing thousands of highly skilled pilots while ensuring the growth of ancillary aviation sectors. The company’s efforts mark a pivotal step toward realizing the dream of a Viksit Bharat—one that takes flight through education, innovation, and enterprise. ( Advertorial)

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Behind the scenes of ground handling in the Nordics

In this feature, Aviator CEO Jo Alex Tanem talks about the realities of ground handling in the Nordics and the exceptional operations handled behind the scenes. Pit-stop precision Much of ground handling takes place behind the scenes, yet these services are critical to smooth airline operations. Once an aircraft lands, it must be turned around for its next flight within an extremely tight window – and winter adds the complexity of de-icing procedures. According to Tanem, a Norwegian who has spent more than three decades in aviation, ground handling must be coordinated down to the second. “When an aircraft arrives, we have about 25 minutes until its next departure. In that time, 160 passengers disembark and the same number board; 100-120 bags are unloaded along with cargo – sometimes pets or wheelchairs. Then the hold is loaded again, catering is restocked, and 10-20 tonnes of fuel are pumped in. To make it all happen, we operate like an F1 pit crew: everyone and everything in position, then the moment the aircraft stops, we execute dozens of tasks simultaneously,” Tanem explains. “One of the Mission: Impossible films was shot in northern Norway, and our team handled the aircraft that flew in the production equipment. Tom Cruise was on also board. Equally memorable was the day we serviced Air Force One in Helsinki when Donald Trump arrived with his wife. That was no ordinary operation – it required exceptional security measures,” Tanem recalls. Representing the airline Ground crews must treat passengers as their own customers, not the airline’s, says Tanem –that’s how his company earns the trust of its partners. “Even major carriers like Lufthansa, Air France, and KLM can’t handle ground services themselves at every airport around the world, so they hire us. We must remember that when we check in a Lufthansa passenger at Arlanda, we are Lufthansa to them. That’s an enormous responsibility.” Yet safety standards matter even more than customer service, he adds. To win contracts, ground handlers must demonstrate top-tier operational performance. “At the airports where we work, we compete with several other providers – airlines typically invite bids from all of us. The only way to stand out is by proving you’re the best, especially on safety. During servicing, for example, you can’t leave so much as a scratch on the aircraft; even a minor defect can ground a plane. That’s why we invest heavily in training, for both new hires and existing staff. Safety is the first thing airlines evaluate. If you don’t meet their standards, your bid won’t even be considered,” Tanem says. Sustainability and diversity Success in ground handling comes down to flexibility – adapting to shifting client needs and volatile flight schedules, Tanem notes.“We don’t offer a one-size-fits-all package; we tailor our services to each client. But airlines now adjust schedules almost weekly. If demand drops, they swap aircraft, change routes, or cancel flights altogether. We have to keep pace, and that’s challenging – you can’t resize your workforce on a whim. So we focus on efficiency and smart use of technology.” Adapting to electric ground handling equipment, replacing diesel-powered machines to cut noise and emissions on the apron are few of the good sustainability initiatives. The equipment costs more upfront but is cheaper to maintain – and airlines increasingly value sustainable practices. “We were the first to deploy an electric belt loader, and we piloted an electric lift that raises ULDs to the aircraft door. We also performed the world’s first pushback of an Airbus A380 using an electric tug. Switching to electric is a major step toward greener operations and a healthier environment for our people,” Tanem says. A skilled workforce is equally vital. According to Tanem, candidates are drawn by ones openness and inclusive culture. “In the Nordics, pay across ground handlers is broadly similar thanks to strong unions. What sets employers apart is how they treat people. We work hard to offer everyone equal opportunities and actively encourage women to join the industry. At our Gothenburg station, women already make up nearly a quarter of the ramp team.” From Scandinavia to the world Sharing Aviator’s perspective, Tanem adds, “ Partnerships like this are invaluable as they open doors to new markets and help us align our services. Although Aviator and BGS are separate entities, we work closely together and are jointly exploring opportunities worldwide. In January 2026, we’ll unveil a new company strategy. Expect to see Aviator and BGS expanding well beyond the Nordics and Europe. (Views expressed are personal. Image provided by Aviator Airport Alliance)

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BHAARTI: Revolutionising Agriculture and Aviation

“BHAARTI is a game-changer for Bihar’s rural landscape, where my roots lie. By empowering women with drone technology, it fosters self-dependence and strengthens their connection to their motherland. While technology isn’t my domain, I see its potential to transform Bihar’s agrarian economy. By merging tech with rural economics, BHAARTI can drive holistic development and upliftment in the state,” Shipra Mishra, Young Leader of BHAARTI. Fliteline Aviation Academy (FAA) is an academy, currently engaged in the various short and mid-term aviation related courses under the approval of Aerospace and Aviation Sector Skill Council and managed by aviation professionals having accumulative experience of over 100 years. Establishing a Memorandum of Understanding (MoU) with Bihar Agricultural University, Sabour, FAA represents a pivotal milestone on the path of development. Our partnership aims to merge the university’s scientific research capabilities with Fliteline’s cutting-edge drone technology to address the unique agricultural challenges of Bihar. Through rigorous training programs, data-driven research, and hands-on demonstrations, we are determined to equip the next generation of farmers and agronomists with the skills and knowledge they need to thrive in an increasingly tech-focused world.     BHAARTI, Bouquet of Harmonised Agriculture & Aerospace Related Training Initiative is a pioneering initiative under the joint initiative of FAA and BAU, which will empower women in agriculture and aviation through cutting-edge drone technology training, manufacturing, and maintenance. By fostering innovation and technological growth, BHAARTI aims to transform India’s aerospace and agricultural sectors. K-RISHI Aero lab is the extension of the vision that has culminated in the creation of a Center of Excellence for Agri-Drones in Bhagalpur, an initiative intentionally designed to serve the Agri-dominant state. Overcoming countless logistical, regulatory, and financial hurdles, BHAARTI has formed a vibrant space where students, farmers, entrepreneurs, and industry leaders can come together to innovate and collaborate. From production of Agri-Drones, its maintenance and flying training to rural women, every success story we script here will resonate in the fields across Bihar and beyond. Key Features: – Comprehensive Drone Training: DGCA-approved training courses covering drone surveying, mapping, aerial cinematography, and agricultural drone piloting for women. – State-of-the-Art Drone Manufacturing: Establishing a manufacturing facility for agricultural drones, promoting precision agriculture and reducing manual labour. – Drone Maintenance and Repair: Providing maintenance and repair services to ensure sustainability and efficiency in drone operations. – Centre of Excellence: Developing a centre for research, development, and innovation in drone technology, focusing on agriculture and aerospace sectors. Meet the Leader: Shipra Mishra, a visionary and passionate leader, is at the helm of BHAARTI. Inspired by the Drone Didi scheme, she has pioneered India’s first all-women Agri-drone training and manufacturing centre. As a final-year student at Delhi University and a proud native of Bhagalpur, Bihar, Ms. Mishra has dedicated two years to developing this initiative under the guidance of her father’s Fliteline Aviation Academy. Empowering Women through Technology: BHAARTI, led by Ms. Mishra, is a groundbreaking initiative that aims to modernize Bihar’s agriculture sector and empower women in technology-driven careers. By providing training and manufacturing opportunities in Agri-drone technology, BHAARTI is poised to make a significant impact on the lives of women in Bihar and beyond. A Step towards a Brighter Future: Under Ms. Mishra’s leadership, BHAARTI is set to revolutionize the agriculture sector in Bihar, promoting sustainable practices, and empowering women to take on leading roles in technology-driven careers. With its innovative approach and commitment to excellence, BHAARTI is an inspiring example of what can be achieved through determination and passion. Objectives: – Women Empowerment: Training women in drone technology to enhance their livelihood and contribute to society. – Agricultural Productivity: Promoting precision agriculture, reducing manual labour, and increasing crop yields through drone technology. – Industry-Academia Collaboration: Fostering partnerships with organizations like Bhagalpur Agricultural University and Fliteline Aviation Academy to support MSMEs and startups. Strategic Partnerships: – Proper Avionix: Partnering for expertise in aviation technology and IT solutions. – CHAMF (Centre for Herbal Agro Manufacturers’ Federation): Collaborating to promote herbal farming and sustainable agriculture practices. – AASSC(Aerospace and Aviation Sector Skill Council): Partnering to enhance skill development and industry expertise. Impact: – Transforming Bihar’s Agriculture: Revolutionizing Bihar’s agriculture sector through sustainable practices and women’s empowerment. – Leading India’s Drone Revolution: Transforming India’s aerospace and agricultural sectors through innovation and technological growth.

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Smart Regulations by AERA: Raising the Bar for Air Travellers

AERA’s move to link airport tariffs with service standards signals a new era of smart regulation in India — putting passengers first while boosting efficiency, accountability, and global competitiveness.         By Gurmukh Singh Bawa, Senior Aviation Consultant Across the world — from the Asian Development Bank to the Wharton School and the World Economic Forum — policymakers and thinkers are recognising the transformative potential of smart regulations. They enhance efficiency, reduce friction among stakeholders, and ensure that growth is both sustainable and inclusive. India too is beginning to embrace this philosophy. A strong example comes from the Airports Economic Regulatory Authority of India (AERA), whose recent initiative has the potential to change the way we experience air travel. In a recent public notice, AERA announced its intent to formulate Rules and Performance Standards for Major Airports — defined as those handling over 3.5 million passengers annually. These standards cover quality, continuity, and reliability of service and associated activities, alongside the issue of tariffs. More importantly, this step is not merely a compliance measure. It is a conscious attempt to prioritise the flier’s experience — recognising that the passenger is the true customer who ultimately pays for everything at airports and on airlines. Linking Tariffs with Service What makes this initiative unique is the direct connection between tariffs charged and services delivered. This means that airport operators will no longer be able to charge fees without ensuring visible and measurable service quality. For passengers, this could translate into very real improvements: • Availability of trolleys at all times. • Timely baggage delivery on arrival belts. • Clean, hygienic, and functional toilets across terminals. • Queue management systems that eliminate excessive waiting. • Transparent tracking of dwell time — the time passengers spend at check-in, security, immigration, and baggage claim. In the past, gaps in infrastructure and poor service delivery often led to chaos at airports, sometimes necessitating ministerial intervention. AERA’s move makes such lapses harder to ignore. Just as airlines are measured for On-Time Performance (OTP), now airports and other stakeholders too will be held accountable. By adopting the well-known “carrot-and-stick” approach, AERA is introducing both incentives and penalties. Good performance will be rewarded, while lapses will attract consequences. This proven method aligns the interests of stakeholders with organisational objectives and, ultimately, passenger satisfaction. Ensuring Inclusive Facilities An important dimension of smart regulation is inclusivity. Airports are not just transit points; they are public spaces that must cater to senior citizens, differently abled persons, and passengers requiring special assistance. For these groups, long queues, inaccessible facilities, or inadequate support services can turn travel into an ordeal. By linking tariffs with service delivery, AERA’s framework should ensure: • Dedicated assistance counters for senior citizens and differently-abled passengers. • Priority access lanes at security and boarding gates. • Wheelchair availability and escort services without delays. • Barrier-free infrastructure — ramps, lifts, tactile flooring, and accessible restrooms. • Golf carts for long walking distances within terminals, especially in large hub airports. • Clear signage and trained staff to provide courteous support. Globally, such provisions are standard benchmarks of quality. Embedding them into India’s regulatory framework will not only enhance the passenger experience but also reflect our commitment to equity, dignity, and universal access. Why Smart Regulation is Essential? Smart regulation is not about creating more rules; it is about creating better rules. It ensures a win–win situation for all parties involved: • For passengers, it guarantees better service and accountability. • For businesses, it provides clarity, stability, and reduced friction in operations. • For investors, it signals transparency and predictability. Globally, smart regulations are associated with simplified licensing, digitised processes, and embedded feedback systems for continuous improvement. Governments across Asia-Pacific are actively reforming their regulatory environments to reduce business costs, attract investment, and encourage innovation. AERA’s step is a welcome alignment with this global trend.However, the task is not easy. Regulators must strike a delicate balance — minimising compliance burdens while safeguarding passenger interests. The Indian Challenge For a developing country like India, the case for smart regulation is even stronger. Travellers often encounter a stark contrast between airports within a span of just a few hours. This inconsistency reflects the urgent need to upgrade standards across the board. If India is to emerge as a nation with multiple hub airports, competing with global hubs in the region, our facilities must offer world-class service. Barriers to efficient operations risk slowing down the growth of both passenger and cargo traffic. Smart, business-friendly regulation is the only way forward. Encouragingly, India’s economy and aviation traffic have grown steadily over the past two decades (excluding the pandemic period). Yet, the ongoing tariff wars among airlines have raised serious concerns about sustainability. This is where a strong, business-friendly regulatory regime becomes critical — one that removes unnecessary burdens, ensures effective enforcement, and establishes benchmarks based on international best practices. Benchmarking India’s Regulatory Quality International comparisons highlight the urgent need for reform. According to the World Bank’s Worldwide Governance Indicators (2023), India’s Regulatory Quality percentile rank was just 14.8, placing the country in the lower end of the global spectrum. This score reflects perceptions of the government’s ability to formulate and implement sound policies that support private sector development. Quite clearly, there is substantial room for improvement in both the regulatory framework and its enforcement. The experience of countries like the Republic of Korea offers valuable lessons. Korea has made Regulatory Impact Assessments mandatory for over two decades, ensuring that new rules are not only well designed but also practically implementable. Importantly, these assessments are effective because they are backed by political commitment, institutional capacity, and transparency. For India, adopting similar practices could strengthen policy-making, enhance investor confidence, and ensure that aviation growth is both sustainable and equitable. Investing in Regulatory Quality The aviation industry is one of the most capital-intensive sectors. India’s ambitions to expand its aviation footprint and develop hub airports cannot succeed without substantial foreign direct investment (FDI). Here, the quality of regulation

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Insect season: an overlooked threat to aircraft efficiency

Aircraft performance during insect season faces a costly challenge that many airlines underestimate. Research shows that insect accumulation on an aircraft’s laminar flow area and increase fuel consumption by 1.1% to 4.4%, with contamination levels as low as 400 insects creating measurable drag penalties. In other words, insect season can cost airlines millions annually. The hidden costs of contamination During insect season, bug residue tends to build up quickly on the nose, wings, and forward sections of aircraft. Without proper aircraft exterior cleaning, the drag they produce counteracts the force of thrust generated by engines and the lift generated by wings. This increases fuel consumption, creating additional operational expenses for airlines. According to a detailed study by the German Aerospace Center (DLR), insect accumulation on natural laminar flow (NLF) wings can cause significant fuel penalties. The study showed that contamination levels of about 400 insects can increase fuel consumption by roughly 1.1% for shorter flights (~750 km) and up to 4.4% for longer missions. “Given that fuel typically accounts for 25-30% of an airline’s total operating expenses, even a 1-4% increase in fuel burn due to insect contamination can cost airlines millions of dollars, especially for fleets with many daily flights,” says Veronika Andrianovaite, Chief Commercial Officer of Nordic Dino Robotics. The insect problem The threat of insect contamination is typically limited to operational phases close to the ground. Even during critical phases of flight, the aircraft speed is high enough to cause a rupture of the insect body. “It is estimated that 50-60 % of the insects are collected during the ground run and thebalance at low altitude during climb out, final approach and landing,” Nordic Dino expert explains. “Depending on insect size, impact angle and impact speed, insect residue can account for up to a fourth of an aircraft’s overall contamination.” Insect activity for air travel has distinct regional and seasonal patterns. According to Andrianovaite, it reaches its peak during warmer months: “In Europe, for instance, it’s spring and summer. In many parts of Asia, it is linked to the monsoon season, which typically brings increased rainfall and humidity and can last until October.” A solution that works Given the cost impact of insect contamination, frequent aircraft cleaning becomes critical during peak insect activity periods. With airlines currently in high season across many regions, efficient cleaning solutions are essential for maintaining operational performance. Robotic aircraft cleaning equipment offers a fast and safe solution to remove contaminants, including dead bugs – especially crucial during high-frequency, warm-weather operations when insect buildup accelerates, says Andrianovaite: “Using modern aircraft washing robots, such as the Nordic Dino, can help to reduce aircraft exterior cleaning times by up to 80%,” “For wide-body airliners like the Airbus A330 and the Boeing 777, the time spent on exterior cleaning can be shortened from 8 to 4 hours, and for narrow-body jets like the Boeing 737, the required aircraft-on-ground (AOG) time is reduced from 3 to 1 hour.” Aircraft washing robots eliminate long hours of manual labor-intensive washing procedures. In an industry that requires the highest levels of efficiency, these solutions bring serious long-term benefits – making sure tiny insects don’t create big problems for performance and profitability. ( Article provided by Nordic Dino,producer of self-contained robots for automatic aircraft washing and aircraft cleaning services)Views expressed are personal)

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GIFT City & The Aircraft Objects Act, 2025

Catalysing India’s Rise in Global Aviation Finance The article co-authored by Nand Gopal Anand, Partner and Vrindesh Patel, Sr. Associate from JSA’s Banking & Finance practice dwells upon India’s evolving legal and tax framework for aircraft leasing, the strategic role of GIFT City in competing with global aviation finance hubs and how the recent legislative reforms support capital self-reliance in aviation, aligned with the ‘Atmanirbhar Bharat’ vision. India’s aviation sector has rapidly become a focal point in global markets, underpinned by robust economic growth, burgeoning middle class, and progressive policy reforms. Today, India stands as the third-largest domestic aviation market. Recent initiatives, such as the expansion of UDAN scheme, and development of 50 new airports, alongside ongoing Greenfield developments of Noida and Navi Mumbai International Airports, reflect Government’s comprehensive strategy to promote air travel and foster inclusive regional growth and connectivity. Building on this momentum, Indian airlines have been placing record-setting aircraft orders, to cater the current and anticipated demand. This presents a unique opportunity for India to evolve from a high-demand market into a global centre for aircraft leasing and financing. Traditionally, this market has been dominated by jurisdictions like Ireland, Singapore, and Hong Kong, owing to their favourable tax and legal regimes. The Gujarat International Finance Tec-City (GIFT City) encompasses the required catalysts for achieving India’s ambition to become a global aviation finance hub, by providing a competitive platform for financial services and cross-border transactions. Progressively, the Government and the International Financial Services Centres (IFSC) Authority have introduced comprehensive incentive regime, including direct and indirect tax benefits, amongst other regulatory advantages, to attract global lessors and financiers to operate from GIFT City. However, establishing a successful aircraft leasing and finance market requires a strong regulatory foundation and legal certainty, along with fiscal incentives. Historically, India’s aircraft leasing framework suffered from procedural delays, inadequate creditor remedies, and jurisdictional ambiguity (as witnessed in the Go First Airlines insolvency saga). Recognizing these challenges, the Government has implemented critical legislative reforms over the years such as: * IBC Carve-Out for Aircraft (October 2023):By way of a notification under Section 14(3)(a) of the Insolvency and Bankruptcy Code, 2016 (IBC), aircraft and aviation assets were exempted from the automatic moratorium, enabling timely asset repossession by lessors and creditors during insolvency. * The Bharatiya Vayuyan Adhiniyam, 2024: Replacing the nearly century-old Aircraft Act, 1934,this modern legislation enhances the DGCA’s enforcement powers and aligns Indian aviation law with International Civil Aviation Organization norms. * Protection of Interests in Aircraft Objects Act, 2025:India’s most consequential aviation finance statute to date, this Act implements the Convention on International Interests in Mobile Equipment (CIIME) and Protocol to the CIIME on Matters specific to Aircraft Equipment, which India ratified in 2008. Effective May 1, 2025, the Act introduces internationally harmonized protections for lessors, financiers, and secured creditors.Key features include a national registry with DGCA, repossession within 60 days without judicial intervention and detention of aircraft by the Government. These reforms signal that the regulatory framework in India has sufficiently matured to support a thriving aircraft leasing and financing market in GIFT City.The transformational potential was demonstrated in March 2025 when AI Fleet Services Ltd., a Tata Group subsidiary, secured a long-term USD financing for the acquisition of 34 Airbus A350-900 aircrafts for Air India. Structured entirely within GIFT City, without relying on traditional offshore jurisdictions, this deal marked a definitive pivot towards self-reliance in aviation finance and showcases the readiness of India’s IFSC ecosystem. With consolidations such as Air India and Vistara, new entrants like Akasa Air, and aggressive fleet expansions, capital demand in India’s aviation sector is surging. With the implementation of the Aircraft Objects Act and continued development of GIFT City, India has all the ingredients to emerge as a significant player in global aviation finance. Aligning with the vision of ‘Atmanirbhar Bharat’,catering the capital demand for India’s aviation sector from financial capabilities within the country’s institutional framework, i.e.,GIFT City,offers a remarkable opportunity to establish India as a leading global aviation leasing and financing hub, extending benefit to all stakeholders. ( Views expressed are personal)

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What to look for when valuing an aircraft engine?

  By Sudeep Sharma , Director, Safe Fly Aviation Aircraft engines are the heart of any airplane, often accounting for 30-50 per cent of an aircraft’s total value. Accurately valuing an engine is critical for buyers, sellers, financiers, and insurers in the aviation industry. A well-maintained engine can significantly boost an aircraft’s marketability, while a poorly maintained one can reduce its value or deter buyers. This comprehensive guide explores the key factors to consider when assessing an aircraft engine’s value, including engine specifications, maintenance history, Life-Limited Parts (LLPs), market trends, and operational environment. Interactive charts are included to help visualize these factors, making it easier to understand their impact. Why Engine Valuation Matters The engine is one of the most expensive components of an aircraft, and its condition directly impacts resale value, financing options, and insurance premiums. According to VREF, a leading aircraft valuation service, engine condition—verified through maintenance records, logbook reviews, and inspections—is central to determining an aircraft’s market value. For example, a mid-time engine with significant hours remaining before its Time Between Overhaul (TBO) can add tens of thousands of dollars to an aircraft’s price, while an engine nearing TBO may require costly maintenance, lowering its appeal. This guide covers the critical factors influencing engine value, with detailed insights into LLPs and other technical aspects, supported by interactive charts for clarity. Key Factors in Valuing an Aircraft Engine 1. Engine Type and Specifications The type of engine—piston, turboprop, or jet—fundamentally affects its value due to differences in design, performance, and application. Each engine type has unique specifications that influence its market worth: Piston Engines: Common in general aviation aircraft like Cessna 172s or Piper Cherokees, piston engines (e.g., Continental IO-520, Lycoming O-360) are valued based on horsepower, reliability, and airframe compatibility. Their TBOs typically range from 1,800-2,000 hours. Turboprop Engines: Found in aircraft like the Beechcraft King Air or Pilatus PC-12, turboprops (e.g., Pratt & Whitney PT6A) are prized for durability and efficiency, with TBOs often exceeding 3,600 hours. Jet Engines: Used in business jets and commercial airliners (e.g., GE CF34, Rolls-Royce BR725), jet engines are high-value components with valuations tied to thrust ratings, fuel efficiency, and maintenance programs. Their TBOs can range from 4,000 to 8,000 hours. Key Specification Metrics: Thrust or Horsepower: Higher output (e.g., 180 HP for a Lycoming O-360, 8,700 lbs thrust for a CF34-3B) increases value. Time Between Overhaul (TBO): Engines with longer TBOs, like the PT6A’s 3,600 hours, are more valuable due to lower maintenance frequency. Fuel Efficiency: Modern engines with better specific fuel consumption (SFC) are more desirable. Weight and Size: Lighter engines with comparable power output are preferred for performance. Engine Type Comparison 2. Maintenance History and Condition A detailed maintenance history is critical to engine valuation. Buyers and appraisers scrutinize records to assess condition and reliability. Key elements include: Time Since Major Overhaul (TSOH): Engines closer to their TBO limit are worth less unless recently overhauled. For example, a Lycoming O-360 with 200 hours since overhaul is significantly more valuable than one with 1,800 hours. Logbook Completeness: Comprehensive logbooks documenting maintenance, repairs, inspections, and overhauls are essential. Missing logs can reduce value by 10-20%. Service Bulletins and Airworthiness Directives (ADs): Compliance with manufacturer service bulletins and FAA/EASA ADs ensures safety and regulatory standards. Non-compliance can lead to costly repairs. Damage History: Engines with prop strikes, corrosion, or foreign object damage (FOD) are devalued, even if repaired. A prop strike may require a $10,000-$20,000 teardown inspection for a piston engine. Maintenance Program Enrollment: Engines in programs like Rolls-Royce’s CorporateCare or Pratt & Whitney’s ESP provide predictable maintenance costs, increasing value. Tip: Engage a professional appraiser from VREF or the National Aircraft Appraisers Association (NAAA) to verify maintenance records. Impact of TSOH on Engine Value 3. Life-Limited Parts (LLPs) Life-Limited Parts (LLPs) are critical components in jet and turboprop engines with defined lifespans, measured in cycles (takeoffs and landings). LLPs, such as turbine blades, disks, and compressors, must be replaced when they reach their cycle limit, as mandated by manufacturers and regulatory bodies like the FAA or EASA. LLP status significantly impacts engine value, particularly for high-value jet engines. Key LLP Considerations: Cycle Limits: Each LLP has a specific cycle limit (e.g., 15,000 cycles for a CFM56-7B turbine disk). Engines with LLPs nearing their limits require costly replacements, reducing value. Remaining Cycles: Engines with significant remaining cycles (e.g., 10,000 cycles on a 15,000-cycle limit) are more valuable. LLP replacement for a CF34 engine can cost $500,000-$1,000,000. Documentation: Accurate LLP tracking in maintenance records is essential. Missing data can lead to conservative valuation assumptions. Replacement Costs: LLP replacement costs vary by engine type, with larger engines like the GE90 being more expensive than smaller ones like the CF34. Example: An engine with 5,000 cycles remaining on its LLPs is more valuable than one with 1,000 cycles, as buyers face lower near-term maintenance costs. LLP replacement can account for 20-30% of overhaul costs. LLP Cycles vs. Engine Value 4. Market Trends and Demand Engine value is influenced by supply and demand in the aviation market. Key factors include: Popularity of Aircraft Models: Engines for popular aircraft like the Cessna 172 (Lycoming IO-360) or Boeing 737 (CFM56) hold higher value due to demand. Availability of Parts: Engines with readily available spare parts, like the PT6A, are more valuable than those for out-of-production aircraft. Fuel Type Trends: Engines compatible with sustainable aviation fuels (SAF) or unleaded fuels like UL91 or 100UL are gaining value, driven by environmental regulations and initiatives like the FAA’s EAGLE program. Economic Factors: Economic downturns, fuel price volatility, or supply chain disruptions (e.g., post-2020 semiconductor shortages) can affect demand. Market Demand for Engine Types 5. Modifications and Upgrades Engines with modifications or upgrades often command higher values due to improved performance or compliance. Examples include: Supplemental Type Certificates (STCs): STCs for performance enhancements, like increased horsepower or noise reduction, boost value. Avionics Integration: Engines paired with modern avionics, like Garmin G1000, enhance aircraft value. Performance Enhancements: Modifications like Raisbeck strakes

Features

AI 171 Crash and Why the World Wants to know, “Why?!”…

                                       By Mark D Martin, CEO Martin Consulting Air India Flight 171 killed 230 passengers including 169 Indians,11 children and 2 infants; 53 British, 1 Canadian, 7 Portuguese, 2 pilots, 10 crew and former BJP Gujarat Chief Minister Vijay Rupani in possibly the most tragic and shocking air disaster in 40 years. There’s a very good reason why the investigation into the cause of this crash is now a multinational global enquiry with active oversight from the United Kingdom Civil Aviation Authority (UKCAA), FAA (Federal Aviation Administration), the National Transportation Safety Board (NTSB), The European Aviation Safety Agency (EASA), Transport Canada in addition to Boeing, the Indian DGCA and the AIB. And that is, this is the first ever controlled flight Air Disaster involving the Boeing 787-8 Dreamliner aircraft operated now by a Privately owned Air India by the Tata’s and Singapore Airlines with a 24% Shareholding in the airline. Over the last 20 years passengers attacked and lambasted the Government of India for running a shoddy Air India with losses, Unions with an indifferent and arrogant attitude with service, quality, and standards. Shockingly though, Air India under Government ownership flew, operated without any major air incident, disaster and catastrophe in forty years, except possibly Air India being a victim of world Terror (AI 182 Kanishka). If-it-aint-broke-don’t-fix-it The problem with Air India is a systemic and malignant archaic structure along with an aging fleet, breaking aircraft and a maintenance backbone that can’t keep up with industry standards reliability and product freshness. Not branding. In 2021 the Government handed over a ‘net-of-loss’ Air India to Tata and Singapore Airlines and it was expected that an Air India under private management and ownership with begin with addressing some of the glaring problems the airline faced. And Tata’s an expert with this, in the way they transformed TATA Motors and Tata Steel. This needed effort with adult supervision with Air India’s new management roll its sleeves up to fix the real problem ground up. Instead, the management chose to ‘modernize’ the airline with an inane branding exercise and took the ‘jugaad’ path to solving the dilapidated product image with a gradual and painstakingly slow fleet induction process that will span 5 years of aircraft deliveries from Airbus and Boeing. Air India is the only airline since it went to private ownership with the highest amount of recorded safety violations linked to financial penalties and fines by the DGCA. This was with training lapses, crew proficiency, maintenance reliability shortfalls and quality control. With 95% percent of Air India’s fleet being on average of 18 to 20 years old, sooner or later there was bound to be signs of a possible breakdown with reliability and quality assurance. And that’s what we saw in Ahmedabad. Could Something Have been Done to improve AI 171 Crash Survivability? What appears to have gone wrong with AI171 is a complete loss of engine power that prevented the aircraft from climbing and/or continuing flight leading to the aircraft dropping like a rock. Why this happened should form the core element of investigation for the multinational investigator delegation as everything from engine maintenance, Digital Engine Control System(FADEC) to the sudden loss of power at 600 ft will be scrutinized. the very location and presence of India’s airports too are an utter disaster and an a clear apparent safety hazard during an emergency. Every Indian Airport today is surrounded by extreme urbanization with residential apartments, office blocks, colleges, hospitals and malls, and in during a sudden event of loss of power with any aircraft, there’s no way any aircraft can be put down safely. There’s a very good reason why most airports in Europe and Asia ban urbanization near and around airports to allow for better and safer controlled forced landings. And we know this when we take off or land from an airport in Europe and Asia, all that one sees is open farming agriculture fields with no obstacles that allow for safer and better controlled emergency landings. Crack the Whip, Fix the House, Hold Those Accountable The Air India Conundrum | The Government does not own Air India, Tata and SIA does. And its high time that those in Management are held accountable and responsible for this incident. Fixing Air India needs to bottom up, not top down ‘jugaad. The findings from the investigation needs to be put into immediate action, be it maintenance practices, phasing out an entire fleet or fixing the broken maintenance system that plagues Air India. Before Tata-SIA inducts more aircraft, it’s imperative that they establish a robust airline maintenance structure and system to support both existing aircraft and the new fleet. Fix the House, India Airports Need a Shake up | With Delhi, Mumbai, Bangalore, Hyderabad, Calcutta and Bangalore nestled in the midst of dense urbanization, right now there’s a zero chance of crash survivability when the chips are down and a pilot can’t bring back the aircraft to the airport. India needs to relook all its airports and start making plans to relocate every airport as far away from dense urban catchments. This will be long, slow and painful, but it needs to be done Crack the Whip, Hold Those Accountable | With over 10 regulators, Boeing and nearly 5 foreign Governments watching over the Incident and Accident Enquiry of Air India 171, and a crash in the heart of Gujarat, the home city of Prime Minister Modi, I reckon this time, we should see the most unbiased, neutral and fiercely independent investigation and Court of Inquiry, ever. With the world wanting to know what went wrong with the 787-8, factuality and prime facia evidence will be the lynchpin of the cause with what went wrong. The findings, such as they may be, has to be enforced, embedded and integrated into operations worldwide and those responsible must be held accountable should be indicted to the

Features

Aircraft corrosion – aviation’s unseen risk

Anyone with even the slightest experience of cars, especially older cars, knows that corrosion can mark the demise of a vehicle’s lifecycle. Rust on the body or panels will undermine its structural integrity, and will undoubtedly affect the car’s performance. Now, apply this to aircraft, which can also suffer from corrosion (they share similar materials, after all). If you do not maintain an aircraft’s exterior, it too will corrode. And this corrosion can affect not only the airframe, but also the plane’s avionics. It can degrade components, increase maintenance costs if left unchecked, and ultimately possibly lead to catastrophic failures. As Veronika Andrianovaite, CCO of Nordic Dino Robotics, explains,“That’s why it’s essential to stay on top of maintenance and prevent corrosion from developing. After all, it’s our priority to ensure that aircraft remain as safe and reliable as possible. In our industry, the only standard that needs to be followed when it comes to airworthiness is excellence.” The causes and types of aircraft corrosion When certain metals come into contact with water and oxygen, a natural oxidation process begins wherein such refined metals are converted into more stable compounds like oxides or hydroxides. This process, which is relentless, can fundamentally threaten durability and airworthiness. As Andrianovaite illustrates, “During Nordic winters, airports regularly use de-icing fluids and salt to keep runways operational. While these substances protect against dangerous ice, they create other risks. The same salt that leaves a white residue on cars also attacks paint, eventually exposing metal to air and moisture. Over time, this leads to significant corrosion on vehicles. Aircraft face similar challenges, particularly when based near coastal areas where salt exposure is constant.” Further complicating matters is the fact that there are different types of corrosion that can impact an aircraft. It is important to understand that there are lots of types of corrosion that can attack the aircraft in different ways. For example, galvanic corrosion, which happens when you have different types of metal coming in electrical contact in the presence of an electrolyte like salt water. This is more common on mixed metal assemblies. As Andrianovaite continues,“Then there’s pitting corrosion, where localised corrosion creates little cavities in the surface of the material. You’ll see this when aluminium alloys are exposed to chloride. Then, in those places where there’s confined spaces, like joints, the collection of stagnant moisture can lead to crevice corrosion. Meanwhile, wear and corrosion can occur at those points where there’s repeated mechanical motion. The term for this is fretting corrosion. I don’t think it needs saying, but an aircraft is a complex mechanical system, which means you need to be extra vigilant.” Combatting corrosion: having a proactive strategy is key As was noted earlier, the process of corrosion is relentless. Once it has started, its onset can be fast and destructive. Ms. Andrianovaite has an anecdote from one of Nordic Dino’s clients that acts as a shocking illustration of this: “One of our customers told us a story involving the transportation of salted fish. The freight was always placed in the luggage compartment which after 6 months due to the salty nature of the product became corroded and caused damage to the aircraft structure. I was surprised to see how much damage can be done in such a short amount of time. It once again showed the importance of corrosion-preventive measures.” What corrosion-preventive measures are there? Veronika explains,“So, my first piece of advice is to be aware of the places on an aircraft that are most susceptible to corrosion. Fuselage and Skin Panels, Wing and Tail Surfaces, Landing Gear, Engine Components, and Fasteners and Connection Points, these all need to be regularly checked. But the reality is that there is no other real way to protect your aircraft from corrosion than washing it regularly.” She continues, “Boeing, for example, recommends that crack and corrosion inspections should be performed every quarter, and this is the time that most airlines will typically schedule aircraft washing so that they can minimise cleaning expenditure. This approach might appear cost-effective initially, but by scheduling washing so infrequently, you are opening yourself up to the possibility of corrosion developing. And once that happens, you’ll be looking at more downtime, and even service disruptions.” According to Ms. Andrianovaite, airlines are becoming increasingly aware of these issues. Thankfully, instead of having to invest in specialized training and equipment, it is now possible to deploy skilled technicians to client locations where they can perform comprehensive cleaning services. With the help of robotic cleaning solutions, the resources that previously could allow only 1 wash, allow 2 or 3 for the same amount of work and washing solutions. (Views expressed are personal)

FOREWORD

Dear Reader’s,

 

The current edition of Aviation World has covered many areas of Aerospace & Defence based on the latest development in the sector. The front cover highlights three different images, first for the Union Civil Aviation Minister ….. who is leading from the front to steer Indian Civil Aviation sector to witness one of the most interesting phases. He is also facing most tumultuous timing due to the ongoing financial stress in the Aviation sector due to ATF rising cost and long airspace restrictions resulting in mounting losses for Indian carriers. Despite of all the ground level challenges,the minister is addressing new things on regular basis which keeps the sector motivated. We have featured many such developmental works in this edition done under his guidance which will be interesting to read.

Our lead story on “ The West War” is another important feature which covers the ground level reality of the challenges faced by the Aviation sector. Its though time ahead and we believe it will pass soon .

There are features on Regional connectivity and MoCA revised rules on the UDAN 2.0 and how its going to transform the flying experience within India.

In this edition, we have covered topics on MRO,Various Policy changes,Sea Plane Operations by SkyHop Aviation, TATA-Airbus joint project on C295 military aircraft under Make In India which is expected to roll out soon and many other interesting contents which will be good to read.

We are covering Farnborough International Airshow 2026 from 20-24July 2026 in London and our next edition will be based on the same event.For features, you may contact our team on priority basis.

 

Happy Reading!

NEWSLETTER

Aviation World Magazine is India’s premier aviation magazine and has been actively supporting the development of the Indian and global civil aviation sector. We started our journey in year 2015 and its been 12 years now and the response and acceptance is really encouraging. Thanks to all our associates and writers who remained with us in our progressive journey.

We have started 2026 on a very positive note and we look forward to increase our footprints to more locations and induct many more new companies in our campaign.. Do write to us at : editor@aviationworld.in

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