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O ne of the few companies in the world offering a complete range of aircraft from the single jet or propeller engine aircraft to the full size business jet, US based Cessna Aircraft Company is getting proactive in order to dominate the business aircraft sector in the country. The firm is already upping its mar- keting initiatives in the country and expanding maintenance and repair fa- cilities in the country. "India is still a market that is being discovered and we are proud of the fact that we are at the forefront of the dis- covery process," Todd Duhnke, Direc- tor, international sales told fe. "While Brazil is a developed aviation market where the growth numbers for busi- ness jets are not rising that high any- more, India on the other hand is post- ing amazing growth rates in the business aircraft market year-on-year," Duhnke added. The firm manufactures the most complete line of aircraft in the world from Citation business jets, to freight- and passenger-hauling utility Cara- vans, to personal and small-business Single Engine Pistons for every kind of user in the business and private air- craft space in the country. The aircraft are marketed and sold in India by Karnataka based Taneja Aerospace and Aviation Limited (TAAL). TAAL has represented the Cessna Aircraft Company for their Ci- tation range of Business Jets in India since 1995. They essen- tially have a stand-alone mar- keting division that is also sup- ported by an operations arm that provides turnkey Opera- tions and Maintenance sup- port for Cessna Business Jets in India. In addition, TAAL provides consulting support to help po- tential customers evaluate their flight and travel requirements and thereby find an appropriate solution. "We make sure that all our sales representatives in all parts of the world are able to provide the potential client with all the advice necessary to enter into the exclusive club that is private jet owners and operators," Duhnke said. "They provide help with everything from financial analysis to route analysis including issues like im- porting of the aircraft, pilot and crew recruitment and even parkingt and maintenance," he added. On the growth rates of Cessna, Duhnke said that Cessna had delivered more jets in the world than any other aircraft manufacturer. Cessna's range of aircraft can cost anywhere between $1 million to $22 million for all aircraft from single en- gine turboprops to super luxurious business jets. The aircraft manufac- turer even sells turboprop and trainer aircraft and is looking to garner a huge chunk of India's burgeoning small air- craft sector. "The large number of pilot training institutes need trainer aircraft and the government's many initiatives to pro- mote seaplanes in the country give Cessna's caravan series a huge gateway into the country," an official from In- dia's Cessna representatives said. Cessna's hugely popular Citation se- ries of business jets are already the most flown jet aircraft in the country and now their caravan series of sea- planes and single engine turboprops that can land anywhere especially In- dian terrain are all set to flood the In- dian market. G rowing wealth and a rapidly im- proving infrastructure has led Brazilian aircraft manufactur- ing major,Embraer to be very optimistic about the Indian market,especially after early fleet orders for the Phenom family in India. Last year,Invision signed a contract for 18 Phenom 100 and two Phenom 300 exec- utive jets. This order combined with pre- vious orders from Aviators India for two Phenom 100 aircraft has brought the backlog for Embraer hugely popular Phe- nom jets in India alone to more than 22. The Palam-based Communication Squadron of the Indian Air Force that fer- ries the President, the vice-president, the prime minister and visiting dignitaries will operate four of the 14-seater jets while the Border Security Force (BSF) will use the fifth air- craft. Apart from this, soon to be launched South India based re- gional aircraft carrier Star aviation is all set to start operations with brand new Em- braer aircraft. Jagson is also in talks with Embraer in order to place an order for $20 million worth of aircraft in order to expand its capacity. Embraer and the Indian Government have also signed a billion dollar deal for three EMB 145 AEW&C (Airborne Early Warning & Control) jets. The contract includes a comprehensive logistics pack- age comprised of training, technical sup- port, spare parts, and ground support equipment. The proven ERJ 145 plat- form, currently being used on Intelli- gence,Surveillance and Reconnaissance (ISR) missions in Brazil, Mexico and Greece, will join the AEW&C Program under the responsibility of India's De- fence Research & Development Organi- zation (DRDO). The Brazilian aircraft maker's rela- tionship with the Indian government started with the signing of an agreement in September 2003 for purchasing five Legacy executive jets for VVIP use. The total order is estimated to be worth about Rs 727 crore (Rs 7.27 billion). "In India we see a lot of untapped mar- ket potential. The growth potential for ex- ecutive jets in Asia, and especially in In- dia, is phenomenal. There is a lot of latent demand in India and South East Asia where the growth is coming from first time owners," Captain Manfred Baudzus, Director Business Develop- ment, Embraer Executive Jets Asia Pa- cific said. "In the next ten years, we expect 1,300 new Executive Jets to be delivered to Asia. As a very large and hungry market with tremendous growth in the business sector, India may well account for just over half of those new deliveries," he added. Embraer is looking at hard selling its broad range of business aircraft to the country's burgeoning number of high net worth individu- als (HNWIs). The firm has a very entic- ing range of business jets that are available in India. These in- clude the Phenom 100 priced at $3.25 mil- lion, the Phenom 300 priced at $7 million, the Legacy 450 priced at $15.250 million, the Legacy 500 priced at $18.4 million, the Legacy 600 priced at $27.4 million and the Lineage 1000 priced at $42.95 million. But the aircraft maker things ca be easier when dealing with the Indian mar- ket. "The demand for executive jets is there, but complex processes and lack of infrastructure continue to be a problem. We do see major efforts being made to ad- dress these short comings it will need time to take effect. Today, the processes are not geared to efficient use of executive jets in India. This is probably due to a lack of understanding of the needs of this industry by Government," Baudzus said."I believe there was an attempt made at starting an Indian Business Aviation Association, this body would require strong industry support and leadership to lobby the Government to help it to bet- ter understand the needed changes. Once this is achieved Indian industry will re- ally see the benefits that executive jets bring as business tools," he added. “India is still a market that is being discovered and we are proud of the fact that we are at the forefront of the discov- ery process” - TODD DUHNKE P romoted by one of India's largest, diversified and re- spected promoter family groups ( brothers Malvinder and Shivinder Mohan Singh), Ran Air is at present one of the leading air charter companies in the country. The company which per industry sources is looking at going public some time in the near future is presently aggressively ramping up sales, business development and marketing efforts. With its de- sire to reach out to all possible rel- evant target groups its is also ef- fectively trying to cross leverage the reach, presence and strengths of their promoter group family. "With our diligent and client centric approach we are nurtur- ing our existing client base," San- jay Godhwani, CEO and MD of Ran Air said. The company boasts of an enviable ever-growing ver- satile 'owned' fleet which com- prises turbo props, jets and chop- pers and is going ahead full steam with its plans of ramping up its fleet and requisite infrastructure in the coming months. "We want our air charter business to inte- grate and seamlessly present a ho- listic face to the relevant target groups," Godhwani says. Ran Air is solely a charter serv- ice and is at present focused on this model and is not really look- ing as of now at the much talked about fractional ownership model. When asked about the same Godhwani said that the fundamentals of frac- tional ownership were not appealing enough at pres- ent. "We intend to place ourselves as a premier air charter company and want to give corporate clients the real pleasure of flying in state-of-art aircrafts without having them to bother on the technical front of mainte- nance, etc. We are even open to designate aircrafts at client's dis- posal on minimum committed hours for certain tenure. This gives them the privilege of owner- ship without huge investments. In addition, we have lots of other attractive offers for a corporate house who aspires ownership of an aircraft," Godhwani said on the business model followed by Ran Air. On the firms' mar- keting initiatives, God- hwani is frank. "As of now we haven't aggressively started with market- ing initiatives, though it is high on our agenda. Direct client contacts, participation in various forums and activities will help us reach out to various relevant target groups," he said. "Right now our focus is on ramping up and increasing our existing fleet; parallel to which we will soon launch our aggres- sive marketing initiatives," he added. On the problems being faced by charter companies, the versatile CEO of Ran Air said that govern- ment policies were changing and it is taking right steps and meas- ures to do its bit for the segment. "We welcome regulations in the sector. The onus lies on vari- ous category leaders to sit to- gether and work closely with the government to plan and develop this space. Development of Greenfield airports and ramping of business structures will cer- tainly push this category in the right direction," Godhwani said. On the rising input costs for scheduled and non-scheduled air- craft operators, Godhwani agreed that input costs were going up, and this may challenge overall costs of operations. "But we believe that expansion of markets and increased vol- umes in air charter space coupled with the right intent and backed by staying power will definitely help players to build scaleable and successful business models going forward," he said. MAKING THE COUNTRY DANCE TO THE SAMBA WITH ITS TUNES WHILE HE MAY HEAD ONE OF THE LARGEST CHARTER COMPANIES IN THE COUNTRY, RAN AIR IS NOT READY TO SIT BACK AND ENJOY THE FRUITS OF LABOUR IN THE NEXT TEN YEARS, EMBRAER EXPECT 1,300 NEW EXECUTIVE JETS TO BE DELIVERED TO ASIA With an aircraft range encapsulating every aircraft cate- gory in the private and business aviation sector, Cessna is way ahead of the competi- tion in India With a big backlog from Indian clients, Embraer is in party mode Cessna leads the way forward Ran Air in takeoff mode SANJAY GODHWANI 3 JULY 2008

2008 Ran Air in takeoff mode - The Indian Expressstatic.expressindia.com/frontend/fe/LOJP_July08/Jet-3.pdf · porting of the aircraft, pilot and crew ... (BSF) will use the fifth

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One of the few companies in theworld offering a complete rangeof aircraft from the single jet or

propeller engine aircraft to the full sizebusiness jet, US based Cessna AircraftCompany is getting proactive in orderto dominate the business aircraft sectorin the country.

The firm is already upping its mar-keting initiatives in the country andexpanding maintenance and repair fa-cilities in the country.

"India is still a market that is beingdiscovered and we are proud of the factthat we are at the forefront of the dis-covery process," Todd Duhnke, Direc-tor, international sales told fe. "WhileBrazil is a developed aviation marketwhere the growth numbers for busi-ness jets are not rising that high any-more, India on the other hand is post-ing amazing growth rates in thebusiness aircraft market year-on-year,"Duhnke added.

The firm manufactures the mostcomplete line of aircraft in the worldfrom Citation business jets, to freight-and passenger-hauling utility Cara-vans, to personal and small-businessSingle Engine Pistons for every kind ofuser in the business and private air-craft space in the country.

The aircraft are marketed and soldin India by Karnataka based TanejaAerospace and Aviation Limited(TAAL).

TAAL has represented the CessnaAircraft Company for their Ci-tation range of Business Jets inIndia since 1995. They essen-tially have a stand-alone mar-keting division that is also sup-ported by an operations armthat provides turnkey Opera-tions and Maintenance sup-port for Cessna Business Jetsin India.

In addition, TAAL provides

consulting support to help po-tential customers evaluate theirflight and travel requirementsand thereby find an appropriatesolution.

"We make sure that all oursales representatives in all partsof the world are able to providethe potential client with all theadvice necessary to enter intothe exclusive club that is privatejet owners and operators,"Duhnke said.

"They provide help witheverything from financial analysis toroute analysis including issues like im-porting of the aircraft, pilot and crewrecruitment and even parkingt andmaintenance," he added.

On the growth rates of Cessna,Duhnke said that Cessna had deliveredmore jets in the world than any otheraircraft manufacturer.

Cessna's range of aircraft can costanywhere between $1 million to $22million for all aircraft from single en-gine turboprops to super luxuriousbusiness jets. The aircraft manufac-turer even sells turboprop and traineraircraft and is looking to garner a hugechunk of India's burgeoning small air-craft sector.

"The large number of pilot traininginstitutes need trainer aircraft and thegovernment's many initiatives to pro-mote seaplanes in the country giveCessna's caravan series a huge gatewayinto the country," an official from In-dia's Cessna representatives said.

Cessna's hugely popular Citation se-ries of business jets are already themost flown jet aircraft in the countryand now their caravan series of sea-planes and single engine turbopropsthat can land anywhere especially In-dian terrain are all set to flood the In-dian market.

Growing wealth and a rapidly im-proving infrastructure has ledBrazilian aircraft manufactur-

ing major,Embraer to be very optimisticabout the Indian market,especially afterearly fleet orders for the Phenom familyin India.

Last year,Invision signed a contract for18 Phenom 100 and two Phenom 300 exec-utive jets. This order combined with pre-vious orders from Aviators India for twoPhenom 100 aircraft has brought thebacklog for Embraer hugely popular Phe-nom jets in India alone to more than 22.

The Palam-based CommunicationSquadron of the Indian Air Force that fer-ries the President,the vice-president,theprime minister and visiting dignitarieswill operate four of the 14-seater jetswhile the Border Security Force (BSF)will use the fifth air-craft.

Apart from this,soon to be launchedSouth India based re-gional aircraft carrierStar aviation is all setto start operationswith brand new Em-braer aircraft.

Jagson is also intalks with Embraer inorder to place an orderfor $20 million worthof aircraft in order toexpand its capacity.

Embraer and the Indian Governmenthave also signed a billion dollar deal forthree EMB 145 AEW&C (Airborne EarlyWarning & Control) jets. The contractincludes a comprehensive logistics pack-age comprised of training,technical sup-port, spare parts, and ground supportequipment. The proven ERJ 145 plat-form, currently being used on Intelli-gence,Surveillance and Reconnaissance(ISR) missions in Brazil, Mexico andGreece, will join the AEW&C Programunder the responsibility of India's De-fence Research & Development Organi-zation (DRDO).

The Brazilian aircraft maker's rela-tionship with the Indian governmentstarted with the signing of an agreementin September 2003 for purchasing fiveLegacy executive jets for VVIP use. Thetotal order is estimated to be worth aboutRs 727 crore (Rs 7.27 billion).

"In India we see a lot of untapped mar-ket potential. The growth potential for ex-ecutive jets in Asia, and especially in In-dia, is phenomenal. There is a lot oflatent demand in India and South EastAsia where the growth is coming fromfirst time owners," Captain ManfredBaudzus, Director Business Develop-ment, Embraer Executive Jets Asia Pa-cific said.

"In the next ten years, we expect 1,300new Executive Jets to be delivered toAsia. As a very large and hungry marketwith tremendous growth in the businesssector, India may well account for justover half of those new deliveries," headded.

Embraer is looking at hard selling itsbroad range of business aircraft to thecountry's burgeoning number of high

net worth individu-als (HNWIs). Thefirm has a very entic-ing range of businessjets that are availablein India. These in-clude the Phenom 100priced at $3.25 mil-lion, the Phenom 300priced at $7 million,the Legacy 450 pricedat $15.250 million,theLegacy 500 priced at$18.4 million, theLegacy 600 priced at$27.4 million and the

Lineage 1000 priced at $42.95 million.But the aircraft maker things ca be

easier when dealing with the Indian mar-ket. "The demand for executive jets isthere, but complex processes and lack ofinfrastructure continue to be a problem.We do see major efforts being made to ad-dress these short comings it will needtime to take effect. Today, the processesare not geared to efficient use of executivejets in India. This is probably due to alack of understanding of the needs ofthis industry by Government," Baudzussaid."I believe there was an attempt madeat starting an Indian Business AviationAssociation, this body would requirestrong industry support and leadershipto lobby the Government to help it to bet-ter understand the needed changes. Oncethis is achieved Indian industry will re-ally see the benefits that executive jetsbring as business tools," he added.

“India is still a marketthat is being discoveredand we are proud of thefact that we are at theforefront of the discov-ery process” - TODD DUHNKE

Promoted by one of India'slargest, diversified and re-spected promoter family

groups ( brothers Malvinder andShivinder Mohan Singh), Ran Airis at present one of the leading aircharter companies in the country.The company which per industrysources is looking at going publicsome time in the near future ispresently aggressively rampingup sales, business developmentand marketing efforts. With its de-sire to reach out to all possible rel-evant target groups its is also ef-fectively trying to cross leveragethe reach, presence and strengthsof their promoter group family.

"With our diligent and clientcentric approach we are nurtur-ing our existing client base," San-jay Godhwani, CEO and MD ofRan Air said. The company boastsof an enviable ever-growing ver-satile 'owned' fleet which com-prises turbo props, jets and chop-pers and is going ahead full steamwith its plans of ramping up itsfleet and requisite infrastructurein the coming months. "We wantour air charter business to inte-

grate and seamlessly present a ho-listic face to the relevant targetgroups," Godhwani says.

Ran Air is solely a charter serv-ice and is at present focused onthis model and is not really look-ing as of now at the much talkedabout fractional ownershipmodel.

When asked about thesame Godhwani said thatthe fundamentals of frac-tional ownership were notappealing enough at pres-ent.

"We intend to placeourselves as a premier aircharter company andwant to give corporateclients the real pleasure offlying in state-of-art aircraftswithout having them to bother onthe technical front of mainte-nance, etc. We are even open todesignate aircrafts at client's dis-posal on minimum committed

hours for certain tenure. Thisgives them the privilege of owner-ship without huge investments.In addition, we have lots of otherattractive offers for a corporatehouse who aspires ownership ofan aircraft," Godhwani said onthe business model followed byRan Air.

On the firms' mar-keting initiatives, God-hwani is frank.

"As of now wehaven't aggressivelystarted with market-ing initiatives, thoughit is high on ouragenda. Direct clientcontacts, participationin various forums and

activities will help us reach outto various relevant targetgroups," he said.

"Right now our focus is onramping up and increasing ourexisting fleet; parallel to which

we will soon launch our aggres-sive marketing initiatives," headded.

On the problems being faced bycharter companies, the versatileCEO of Ran Air said that govern-ment policies were changing andit is taking right steps and meas-ures to do its bit for the segment.

"We welcome regulations inthe sector. The onus lies on vari-ous category leaders to sit to-gether and work closely with thegovernment to plan and developthis space. Development ofGreenfield airports and rampingof business structures will cer-tainly push this category in theright direction," Godhwani said.

On the rising input costs forscheduled and non-scheduled air-craft operators, Godhwani agreedthat input costs were going up,and this may challenge overallcosts of operations.

"But we believe that expansionof markets and increased vol-umes in air charter space coupledwith the right intent and backedby staying power will definitelyhelp players to build scaleable andsuccessful business models goingforward," he said.

MAKING THE COUNTRY DANCE TOTHE SAMBA WITH ITS TUNES

WHILE HE MAY HEAD ONE OF THE LARGEST CHARTERCOMPANIES IN THE COUNTRY, RAN AIR IS NOT READY

TO SIT BACK AND ENJOY THE FRUITS OF LABOUR

IN THE NEXT TENYEARS, EMBRAER

EXPECT 1,300NEW EXECUTIVE

JETS TO BE DELIVERED

TO ASIA

With an aircraftrange encapsulatingevery aircraft cate-gory in the privateand business aviationsector, Cessna is wayahead of the competi-tion in India

With a big backlog fromIndian clients, Embraeris in party mode

Cessna leads the way forward

Ran Air in takeoff mode

SANJAY GODHWANI

3JULY2008