Jetrader - July/August 2008 - (Page 20)

What about ticket prices? Aside from the ticket fees, security fees and travel fees to the airport are the additional User Development Fees (UDF) levied at India’s newer airports which threaten the very existence of low-cost carriers. The accumulation of UDFs coupled with increased travel fees to reach the airﬁelds change the standard for low-cost travel and have led to threatened boycotts by low-cost carriers. Public interest litigation was ﬁled in the Bangalore High Court demanding the existing airports in Bangalore and Hyderabad remain operational citing the Rs. 700 UDF and inaccessibility of the new airports. Negotiations continue regarding the fate of HAL, with current propositions hoping to continue operation of small aircraft of 80 seats or less. However, the Air India Corporate Communications Department explains that the opening of world-class airports across India such as the anticipated BIAL will actually lower ticket prices in the long run. The Open Skies policy afforded carriers more airspace and air capacity, which in turn create more seats, more supply, and less demand until “ultimately, Indians can enjoy more comfort-oriented holidays.” INTERNATIONAL Aviation Services PROTECTING YOUR AIRCRAFT’S VALUE Around the World Around the Clock International Interest While the Indian government has yet to name ATF a declared good, on January 30, 2008, the government approved a relaxation of FDI rules on several economic contingencies, including civil aviation. Together with the improvement initiative on behalf of the nation’s aviation industry, foreign investors have increasingly taken interest in India’s commercial aviation ﬁeld. Already, U.S.-based Sikorsky Aircraft Corporation plans to establish an operational base for corporate jet and defense avionics predicting a ﬂeet of 100 helicopters by 2010. Virgin Group Chairman Sir Richard Branson publicly lobbies for permission to institute a domestic airline in India. Nationally, Thiruvananthapuram-based IBS Software recently entered into a seven-year contract with India’s Jet Airways to supply its product AvientCrew to enhance crew management. The Ministry of Civil Aviation in conjunction with the Federation of Indian Chambers of Commerce and Industry are apt to laud India’s achievements with its summit, “Indian Aviation 2008: International Exhibition and Conference on Civil Aviation” on October 15-18, 2008, hosted by Civil Aviation Minister Praful Patel at HIAL The government reassures the public of completion of renovations to DIAL and MIAL expected by 2009, costing $1.2 billion. Airports Authority of India pledges an additional $1.2 billion to modernize 35 non-metro airports, upgrading 80 airports in all. The Ministry believes the “MRO business is set to gain momentum, considering the low cost and highly skilled manpower in India coupled with cost sensitive customers and growing ﬂeet size, thus posing a signiﬁcant investment opportunity with a potential to service a ﬂeet of 1,000 commercial and 500 general aviation aircraft.” Director General and CEO of the International Air Transport Association (IATA) Giovanni Bisignani remarked in a press conference that in regard to the expansion of air transport, India’s growth is among the fastest in the world. While the Economic Times envisages little growth within the worldwide aviation industry, IATA sees India as one of the few markets ripe to rebel against this ominous forecast. Kristen Chmielewski, a volunteer intern with MiD DAY newspaper in Bangalore, Karnataka, documents India’s growing civil aviation industry. Aviation Consulting Asset and Lease Management Technical Services Main Ofﬁce Memphis, TN USA +1 (901) 405-1353 www.TheLongbowGroup.com 366166_longbow.indd 1 20 The ofﬁcial publication of the International Society of Transport Aircraft Trading 2/14/08 7:46:59 AM http://www.TheLongbowGroup.com

Table of Contents Feed for the Digital Edition of Jetrader - July/August 2008

Jetrader - July/August 2008 A Message from the President Contents Calendar/News Q&A: Ron K. Anderson Challenges Facing the Very Light Jet An Up Close and Personal Analysis of Indian Aviation Inflation and the Upside Case for Aircraft Investors Aircraft Charts Aircraft Appraisals From the ISTAT Foundation Aviation History

Jetrader - July/August 2008

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