OVERVIEW OF HELICOPTER OPERATION IN INDIA

OVERVIEW OF

HELICOPTER OPERATION IN

INDIA

Prepared by Minesh POUDEL 1

OVERVIEW OF HELICOPTER OPERATION IN INDIA

TABLE OF CONTENT

A. Introduction

1. Introduction to India

Introduction Overview Facts Political System Executive Summary of Indian Government Central Government Ministries (Importance for Eurocopter-Highlight) India Economic Growth Performance

2. Helicopter Operation in India

Introduction: Growth of Helicopter Fleet in India

a. First Civil Helicopter Flightb. First Military Rotary Wing Operation

Projected Helicopter Traffic Growth Initiatives to Increase tourism and Helicopter Industry

a. Tourism Increaseb. Heli Tourismc. Medical Tourismd. Summary

Helicopter Operation in India a. Introductionb. Classification of Helicopter Operation

i. Non Scheduled Operatorsii. Private Categories

iii. Para Militaryiv. Helicopter operated by Central/State Government and

PSC’s

3. 3. Helicopter Manufacturer in India

Introduction (HAL) Short Summary of Defence Sector Scenario Short Summary of recent International Co-operation

• USTDA-DGCA India Co-operation• Tata and Sikorsky Agreement• Global Vectra Helicoro l.t.d• Eurocopter Co-operation with India

4. Summary

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

INTRODUCTION

The economy of India is growing at the rte of around 7-8 percentages from the last ten years. Even during the recession time, India showed promising result with growth at the rate of around 6 percentages.

The first part of this report present Introduction to India, its political structure and what is its policy to increase the economic growth.

The second part starts with the history of helicopter services in India, the governmental policy to increase Heli tourism, the current statistics of Helicopter operator in India (Non scheduled operators, Private sectors, Para Military and Governmental operation), with static’s on market share per manufacturer.

The third part presents the Helicopter manufacturer of India, short description of Offset initiatives taken by Indian government for defence related purchases, with some current co-operation initiatives undertaken by Bell Helicopter, and initiatives by Eurocopter (not up to date).

Finally, the report provides an executive summary on Helicopter growth perspectives in India, with recommendation to Manufacturers/investors to take immediate measures in order to lead the market.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

INTRODUCTION TO INDIA

Map of India (Not up to scale) with States and Union Territories

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

Introduction:

The world's largest democracy and second most populous country emerged as a major power in the 1990s. It is militarily strong, has a big cultural influence and a fast-growing and powerful economy. A nuclear weapons state, it carried out tests in the 1970s and again in the 1990s in defiance of world opinion. However, India is still tackling huge social, economic and environmental problems.

Overview:

The vast and diverse Indian sub-continent - from the mountainous Afghan frontier to the jungles of Burma - was under foreign rule from the early 1800s until the demise of the British Raj in 1947. The subsequent partition of the sub-continent - into present-day India and Pakistan - sowed the seeds for future conflict. There have been three wars between India and its arch-rival Pakistan since 1947, two of them over the disputed territory of Kashmir. A peace process, which started in 2004, stayed on track despite tension over Kashmir and several high-profile bombings until the Mumbai attacks of November 2008, which police blamed on Pakistani militants. India announced that the process was on pause the following month. Communal, caste and regional tensions continue to haunt Indian politics, sometimes threatening its long-standing democratic and secular ethos. In 1984 Prime Minister Indira Gandhi was gunned down by her Sikh bodyguards after ordering troops to flush out Sikh militants from the Golden Temple in Amritsar. And in 1992, widespread Hindu-Muslim violence erupted after Hindu extremists demolished the Babri mosque at Ayodhya. Independent India's first prime minister, Jawaharlal Nehru, dreamed of a socialist society and created a vast public infrastructure, much of which became a burden on the state. From the late 1980s India began to open up to the outside world, encouraging economic reform and foreign investment. It is now courted by the world's leading economic and political powers, including its one-time foe China. The country has a burgeoning urban middle class and has made great strides in fields such as information technology. Its large, skilled workforce makes it a popular choice for international companies seeking to outsource work. But the vast mass of the rural population remains impoverished. Their lives continue to be influenced by the ancient Hindu caste system, which assigns each person a place in the social hierarchy. Discrimination on the basis of caste is now illegal and various measures have been introduced to empower disadvantaged groups and give them easier access to opportunities - such as education and work. Poverty alleviation and literacy campaigns are ongoing. Nuclear tests carried out by India in May 1998 and similar tests by Pakistan just weeks later provoked international condemnation and concern over the stability of the region. The US quickly imposed sanctions on India, but more recently the two countries have improved their ties, and even agreed to share nuclear technology.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA India launches its own satellites and in 2008 sent its first spacecraft to the moon. It also boasts a massive cinema industry, the products of which are among the most widely-watched films in the world. Facts:

Full name: Republic of India Population: 1.2 billion (UN, 2008) Capital: New Delhi Most-populated city: Mumbai (Bombay) Area: 3.1 million sq km (1.2 million sq miles), excluding Indian-

administered Kashmir (100,569 sq km/38,830 sq miles) Major languages: Hindi, English and at least 16 other official languages Major religions: Hinduism, Islam, Christianity, Sikhism, Buddhism,

Jainism Life expectancy: 63 years (men), 66 years (women) (UN) Monetary unit: 1 Indian Rupee = 100 paise Main exports: Agricultural products, textile goods, gems and jewellery,

software services and technology, engineering goods, chemicals, leather products

GNI per capita: US $950 (World Bank, 2007)

Political System: India, a union of states, is a Sovereign, Secular, Democratic Republic with a Parliamentary system of Government. The Indian polity is governed in terms of the Constitution, which was adopted by the Constituent Assembly on 26 November 1949 and came into force on 26 November 1950. The President is the constitutional head of Executive of the Union. Real executive power vests in a Council of Ministers with the Prime Minister as head. Article 74(1) of the Constitution provides that there shall be a Council of Ministers headed by the Prime Minister to aid and advise the President who shall, in exercise of his functions, act in accordance with such advice. The Council of Ministers is collectively responsible to the Lok Sabha, the House of the People. In the states, the Governor, as the representative of the President, is the head of Executive, but real executive power rests with the Chief Minister who heads the Council of Ministers. The Council of Ministers of a state is collectively responsible to the elected legislative assembly of the state.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA The Constitution governs the sharing of legislative power between Parliament and the State Legislatures, and provides for the vesting of residual powers in Parliament. The power to amend the Constitution also vests in Parliament. The Union Executive consists of the President, the Vice-President and Council of Ministers with the Prime Minister at the head to aid and advise the President. President: The President is elected by members of an Electoral College consisting of elected members of both Houses of Parliament and Legislative Assemblies of the states, with suitable weightage given to each vote. His term of office is five years. Among other powers, the President can proclaim an emergency in the country if he is satisfied that the security of the country or of any part of its territory is threatened whether by war or external agression or armed rebellion. When there is a failure of the constitutional machinery in a state, he can assume to himself all or any of the functions of the government of that state. Vice-President The Vice-President is elected by the members of an electoral college consisting of members of both Houses of Parliament in accordance with the system of proportional representation by means of a single transferable vote. He holds office for five years. The Vice-President is Ex-officio Chairman of the Rajya Sabha. Council of Ministers The Council of Ministers comprises Cabinet Ministers, Minister of States (independent charge or otherwise) and Deputy Ministers. Prime Minister communicates all decisions of the Council of Ministers relating to administration of affairs of the Union and proposals for legislation to the President. Generally, each department has an officer designated as secretary to the Government of India to advise Ministers on policy matters and general administration. The Cabinet Secretariat has an important coordinating role in decision making at highest level and operates under direction of Prime Minister. The Legislative Arm of the Union, called Parliament, consists of the President, Rajya Sabha and Lok Sabha. All legislation requires consent of both houses of parliament. However, in case of money bills, the will of the Lok Sabha always prevails. Rajya Sabha The Rajya Sabha consists of 245 members. Of these, 233 represent states and union territories and 12 members are nominated by the President. Elections to the Rajya Sabha are indirect; members are elected by the elected members of Legislative Assemblies of the concerned states. The Rajya Sabha is not subject to dissolution, one third of its members retire every second year. Lok Sabha The Lok Sabha is composed of representatives of the people chosen by direct election on the basis of universal adult suffrage. As of today, the Lok Sabha consists of 545

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OVERVIEW OF HELICOPTER OPERATION IN INDIA members with two members nominated by the President to represent the Anglo-Indian Community. Unless dissolved under unusual circumstances, the term of the Lok Sabha is five years. State Governments The system of government in states closely resembles that of the Union. There are 25 states and seven Union territories in the country. Union Territories are administered by the President through an Administrator appointed by him. Till 1 February 1992, the Union Territory of Delhi was governed by the Central government through an Administrator appointed by the President of India. Through a Constitutional amendment in Parliament, the Union Territory of Delhi is now called the National Capital Territory of Delhi from 1 February 1992. General elections to the Legislative assembly of the National Capital Territory were held in November 1993. Legislative Relations Between the Union and States Under the Constitution, Parliament has the power to make laws for the whole of or any part of the territory of India. The State Legislatures have the power to make laws for the States. The subjects on which legislation can be enacted are specified in the Seventh Schedule of the Constitution. Parliament has the exclusive right to legislate in respect of items appearing in List I, called the "Union List''. This list includes area such as defense, foreign affairs, currency, income tax, excise duty, railways, shipping, posts and telegraphs, etc. State Legislatures have the exclusive power to make laws in relation to items appearing in List II called the "State List''. This includes items like public order, police, public health, communications, agriculture, lotteries, taxes on entertainment and wealth, sales tax and octroi, etc. Both Parliament and the State Legislatures have the power to legislate in items appearing in List III of the Constitution which is known as "Concurrent List''. This list includes items like electricity, newspapers, criminal law, marriage and divorce, stamp duties, trade unions, price controls, etc.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

EXECUTIVE SUMMARY OF INDIAN GOVERMENT

Executives:

President of India Vice president of India Prime Minister’s Office (PMO) (High importance for Eurocopter) Central Government (Ministries) Central Government (Independent Departments) Apex/Independent Offices

Legislature:

Rajya Sabha Lok Sabha State Legislaturas

Judiciary

Supreme Court of India High Courts District Courts

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

Central Government (Ministries) Ministry of Agriculture Ministry of Chemicals and Fertilizers Ministry of Civil Aviation (High Importance for Eurocopter) Ministry of Coal Ministry of Commerce & Industry (High Importance for Eurocopter) Ministry of Communications and Information Technology Ministry of Consumer Affairs, Food and Public Distribution Ministry of Corporate Affairs Ministry of Culture Ministry of Defense (High Importance for Eurocopter) Ministry of Development of North Eastern Region Ministry of Earth Sciences Ministry of Environment and Forests Ministry of External Affairs Ministry of Finance Ministry of Food Processing Industries Ministry of Health and Family Welfare Ministry of Heavy Industries and Public Enterprises (Important) Ministry of Home Affairs (High Importance for Europter) Ministry of Housing and Urban Poverty Alleviation Ministry of Human Resource Development Ministry of Information and Broadcasting Ministry of Labour and Employment Ministry of Law and Justice Ministry of Micro, Small and Medium Enterprises Ministry of Mines Ministry of Minority Affairs Ministry of New and Renewable Energy Ministry of Overseas Indian Affairs Ministry of Panchayati Raj Ministry of Parliamentary Affairs Ministry of Personnel, Public Grievances and Pensions Ministry of Petroleum and Natural Gas Ministry of Power Ministry of Railways Ministry of Road Transport and Highways Ministry of Rural Development Ministry of Science and Technology( Important) Ministry of Shipping Ministry of Social Justice and Empowerment Ministry of Statistics and Programme Implementation (Important) Ministry of Steel Ministry of Textiles Ministry of Tourism (Moderate Importance for Eurocopter) Ministry of Tribal Affairs Ministry of Urban Development Ministry of Water Resources Ministry of Women and Child Development Ministry of Youth Affairs and Sports

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

India Economic Growth Performance (2008-2009): Despite the crisis affected year of 2008-2009, the Indian economy weathered the financial turbulence well and grew at 6.7 per cent in 2008/09, which despite being 2 per cent lower than the average of the preceding three years, was still of a lower order than in most of the world. India’s rapid adjustments in the monetary and fiscal policies were well calibrated and not excessive, enabling the Indian government to contemplate a return to fiscal consolidation in 2010/11 and an early normalization of the monetary policy stance. The Indian economy escaped the global contagion primarily because the Indian banking sector was not exposed to the risky assets, similar to those financed in the advanced economies. In 2009 and 2010, the principal factors detrimental to prospects of a sharp recovery in the growth rate of the Indian economy derive from the international situation. The recession in the developed economies will make recovery a slow and long drawn out process with negative implications for import demand for manufactured goods and services. The weakened state of these economies and the global financial system hold out the possibility that conditions could suddenly deteriorate in the wake of a negative shock, such as a payment crisis in a large bank or a crisis precipitated by a sovereign creditor. Though, the deficient monsoon will pull farm sector growth down, that should not be a handicap if the monsoon is normal in the following years. The industrial sector is likely to show vigorous growth in the second half of the year and farm sector output and GDP growth are likely to be negative. Given the variability of the key elements, the Indian economy is likely to grow by about 6.5 per cent in 2009/10. It is unlikely that growth will be lower than 6.25 per cent but possible that it could reach 6.75 per cent. Factors that Underpin Prospects of Recovery of Growth The Indian economy has witnessed a structural break from the past in respect of the generation of investible resources. During the past five years, the rate of domestic capital formation has climbed to 39 per cent in 2008/09 from 25 per cent, while the domestic savings rate has increased to nearly 38 % in 2007/08 from 26 per cent. The spurt in growth in the recent past was mainly driven by an increase in investment, especially private corporate investment. This was matched by an improvement in the savings rate, led by fiscal consolidation and a reduction in the negative savings by government. The economy, however, continues to be supply constrained, primarily in physical and social infrastructure- electricity, irrigation and drinking water, road and other transportation and rural-urban economic infrastructure, where the government plays a major role. The large increase in domestic savings rate by nearly 10 percentage points of GDP permitted incremental investment of about the same order to be largely financed from domestic resources. It is estimated that primarily as a result of the large negative savings by Government the domestic savings rate which dropped by about 3 percentage points of GDP, is not likely to recover to the 2007/08 levels in the current fiscxiv. The contribution of capital formation to growth was significant in the recent past. The aggregate contribution of domestic consumption expenditure to overall GDP growth has been fairly steady at around 4 percentage points while the contribution of

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OVERVIEW OF HELICOPTER OPERATION IN INDIA capital formation peaked at close to 6 percent of GDP in 2005/06 and 2006/07. The large import component in the context of the accelerated growth is reflected by the large and sustained negative contribution of net exports in these years. Provisional data for 2008/09 suggest that private final consumption expenditure slowed sharply during the year. This was, however, partially offset by the large increase in public consumption expenditure. Over the past few years, private business has invested and expanded its productive capacity significantly in response to the increase in domestic demand. The fall in business confidence and the dislocations of the past year and a half have led to a hiatus, with firms reassessing their expectations about India’s growth prospects. However, with an improvement in domestic economic conditions , it is expected that investment behaviour will pick up. Forecast of growth in Non-Farm Sector With a restoration of normality in operating is expected in the rates of output and GDP expansion second half of 2009/10, especially in the industrial Mining - Due to the substantial increase in production and coal , the GDP arising in this sector is expected to increase by 10 per cent this year. Electricity – The period April to September 2009 witnessed an increase in cumulative power generation by 6.8 per cent. The output levels is likely to improve in the balance part of the year to average at least 7 per cent growth. Manufacturing: Output growth in manufacturing has been sluggish since November 2007. However, manufacturing output bounced back in June 2009, growing by 7.8 per cent, then 7.4 per cent in July 2009 and 10.2 in August 2009. Though, export demand is yet to pick up, the recovery in manufacturing output is broad-based and strong enough to suggest a recovery based on domestic demand, improved business confidence and a stable operating environment. Manufacturing output growth is likely to recover to over 9 per cent in the second half of the fiscal and average 7.7 per cent growth in 2009/10. Construction: Construction growth, which had slumped in the third quarter of 2008/09, has recovered since then. Strong output growth in cement, recovery in steel output and home loan disbursements suggests improved construction activity. It is expected that the GDP arising in the construction sector, will expand by around 8.8 per cent in the current fiscal. Services - The larger part of services that are in the nature of intermediate services for industry will benefit from an upturn in industrial activity. Transport services have picked up. IT and ITES will have strong domestic demand, though exports will remain weak and government expenditure on services (salary and arrears) will continue to show growth in the first half of the year, but slow down in the second half. Overall services sector GDP growth is expected to be around 8 per cent this year.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Balance of Trade In 2009/10, the export outlook will not be favourable to expansion. Exports after reaching their lowest point in the last quarter of 2008-09, have been steadily improving since June, 2009, reaching $14.3 billion in August, 2009. The Council expects strong growth in the second half of 2009-10, with the value of exports for the current fiscal reaching $183 billion as against the DGCIS figures of $182 billion in 2008/09. The value of imports in the first five months of 2009/10 was $102.3 billion - a decline of 33.4 per cent over the corresponding period of last year. This will reverse in the second half of the year and for 2009/10 the value of merchandise imports is projected at $281 billion, 4 per cent lower than 2008/09. The trade deficit corresponding to the DGCIS trade data system is projected at $107 billion, lower than the $109 billion recorded last year. Adjusting for this, on Balance of Payments basis, the merchandise trade deficit for 2009/10 is projected at $ 117 billion or 9.4 per cent of GDP. Capital Flows In-bound foreign direct investment (FDI) has picked up in the first quarter of 2009/10 and will be sustained through the balance of the year to aggregate $37 billion in 2009/10. Outbound FDI is projected to be $14 billion. Portfolio inflows, a large negative number last year, are currently showing a rising trend which is expected to continue. Net inflows are projected at $25 billion in 2009/10. With improved global financial conditions, the overall inflow under the head of loans, is expected to be around $8.7 billion.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

HELICOPTER OPERATION IN INDIA

CHETAK HELICOPTER

produced by HAL with support from Eurocopter

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

TABLE OF CONTENT

1. Introduction: Growth of Helicopter Fleet in India

First civil Helicopter Flight First Military Rotary Wing Operation

2. Projected Helicopter traffic growth

3. Initiatives to increase tourism and Helicopter Industry

Tourism Increase Heli Tourism Medical Tourism Summary

4. Helicopter Operators in India

Introduction Classification of Helicopter Operation

Non-Scheduled Operators Private Categories Para Military Helicopter operated by Central/State Government and PSU’s

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Introduction: Growth of Helicopter Fleet in India Helicopters in both civil & military have been in service of the nation for over 50 years. It was 54 years ago that Capt Rustom Captain CHPL 1 flew the first civil helicopter in the country. While the first flight of civil registered helicopter flew, as early as in 1953 in India, the growth of the Industry has been modest. From 1953 to 1986, the commercial use of helicopters in India was limited to small Aviation companies who were involved in communication and crop spraying roles. In the early years of Oil & Natural Gas Corporations (ONGC’s) oil and Gas exploration work it was supported by the IAF (Indian Air Force) and foreign-charted helicopters. The formation of Helicopter Corporation of India by the Govt in 1986 (later named Pawan Hans Helicopters Limited) with a fleet of 42 helicopters provided the first boost to the Industry in the country. First CIVIL Helicopter Flight Captain RUSTOM CAPTAIN, CHPL No. 1 and the first commercial helicopter pilot in India.

The picture of shows Captain RUSTOM CAPTAIN in Hiller UH12B with (First Prime minister of India) Nehru and Morarji Desai (Ex Prime Minter of India) on board. The flight was from Nariman Point to Vaitarna Dam in late 1953. First Military Rotary wing Operation The Indian Air Force was the first to acquire rotary wing aircraft in the Military. The first helicopter wearing IAF markings appeared at Palam in the form of a Sikorsky, S-55 in 25 March 1954. These general purpose/utility helicopters were used to Equip One - O – Four, which were purchased from USA and marks the first of the IAF’s dedicated rotary wing operating formations. The first flight was undertaken in a

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Sikorsky-55 (IZ 648) by then Flt Lt S.K.Majumdar & Flt Lt.A.N.Todd on 01 Apr 54 from Palam (New Delhi) to Tilpat Range with Pandit Jawahar Lal Nehru on board.

Sikorsky-55 (IZ 648) operated by Indian Air Force on 01 Apr 54 from Palam to Tilpat Range with Pandit Jawahar Lal Nehru on board. Projected Helicopter traffic growth: With increase in GDP from the last ten year plus the increase in defense expenditure by Government of India in order to modernize its fighter and military helicopters, it is estimated that the Helicopter fleet in India will increase drastically. The study performed by Society of Rotory wing in 2008, suggests that by 2010 the civil helicopter fleet will almost double. In addition, some projection performed gives promising figure like India would need 300 more helicopter pilots a year through 2013. To help meet such demand, the government recently decided to permit 100 percent ownership of flight schools by foreign entities. (It also is allowing 100 percent foreign ownership of helicopter operators, which likely would further increase demand for pilots.) The government of France last month said it is working on setting up a flight academy in India in partnership with Eurocopter. Bell Helicopter also is among many others considering such a move.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

55 Years of Helicopters in Service of the Nation Initiatives to increase tourism and Helicopter Industry In order to give boost to the Helicopter Industry in the country, Ministry of Civil Aviation has declared 2008 as year of Helicopter. Number of activities and seminar were organized to popularize the usage of helicopters in the year of helicopter, in association with State government, tourism board of India, Indian hotel association’s e.g. Discussion are already underway in India on funding the “Heli-Tourism development fund” which has started few years back and most probably is already a reality, whose role will be to facilitate the funds towards heli-tourism infrastructure. In addition, the central and state government have taken initiatives to encourage National Airlines & Foreign Airlines to have tie ups with commercial helicopter operators for offering tickets for seamless travel to tourist destinations. Tourism Increase: As India is large and have a variety of tourist spots to offer, the number of foreign tourist in India touched a record five million mark in the year 2007, an increase of 12 per cent from 2006.In the first quarter of 2008, India received 2315811 tourists from abroad .It was 11-12% more than the tourists who visited India from abroad in the previous year. The impressive performance of the tourism sector is expected to continue as a result of the positive image created about the country through successful branding of “Incredible India”. Tourist influx to India is expected to increase at a CAGR of 22.65% between 2007 and 2011. In India, inbound tourist expenditure per head is third highest in the world and even more than global average tourist spending.

Year (07-08)

Year (93-94)

SCENARIO 2010

Civil Helicopter fleet likely to

Double

Around 170 CIVIL

HELICOPTERS REGISTERED

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OVERVIEW OF HELICOPTER OPERATION IN INDIA In addition to that domestic tourists accounted for 461.16 million in comparison to 140.12 million domestic tourists in 1996 in 2006. The main domestic popular destination areas are around popular destinations in 10 States. It is one of the priority of Indian Government and some initiatives are already underway to further increase the inflow of tourist with different development activities in Initiatives are already been taken by state government, to explore the possibility of expanding tourism network in areas yet to be exploited. The Indian government has given it a priority to increase tourism sector which accounts only 0.52 percentage out of global figure, with such an vast potential, as most of the foreign and domestic tourists preferred are restricted to only 10 states. Heli Tourism: There are already discussions at governmental level to ensure intergovernmental linkages and co-ordination as tourism being a multi-sectoral activity. It also has to play a pivotal role in tourism management and promotion and initiatives are underway in order to increase Heli Tours. The specific role identified to boost Heli Tourism is to provide basic infrastructural facilities such as heliports/ helipads with safety services. Step by step approach are under discussion in which, during the initial stages, these facilities may be created at major travel circuits and destinations which have already been identified for development through joint efforts of the Central Govt, the State Governments and the private sector. Priority for development of Heliports may be accorded to destinations which are not hither to linked by fixed wing aircraft. Some examples of tourists destinations at Bekal Beach of Kerala, Puri-Konark of Orissa, Sindhudurg of Maharashtra, Mamallapuram of Tamil Nadu, Damon coast of Daman & Diu Administration have all been declared as Special Tourism Area for integrated development and henceforth initiatives for the creation of heliports at these locations are considered. In addition, plenty of location in Northeastern states, Himalayan region e.g. already have helipads, wherein state government have made it priority for developing Heliports for tourism.

Heli-Luxury at the Backwaters / Plantations / Forests Presently, some of the helicopter operators such as PHHL and Deccan Aviation offer religious tours to shrines at Shri Mata Vaishno Devi, Amarnath and Kedaranath which would otherwise be a tedious walk involving many hours. Deccan Aviation also undertakes heli tours to various tourist spots like Hampi, Belur, Mysore and Kabini. It is likely that more and more Helicopter operators will take advantage of other helipads developed or under development, in order to meet the challenge of providing more choices of destination, in order to boost the foreign and domestic tourism sectors.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Medical Tourism: India holds a great potential for medical tourism. India’s cost effective treatment has already made it an important player in this industry. With global revenues of approximately US$ 20 Billion (2005), the medical tourism industry is one of the world’s largest industries. It is estimated that, growing Medical tourism in India will be one of the major sources for foreign exchange. With increasing number of non-insured population in western countries and increasing healthcare expenditure to GDP resulting in people opting for treatment choices outside their country. The current Health care in India is spending around 5 - 6% of its GDP, which is around $45.7 Billion (USD). It is projected that Health care in India is likely to spend about 8.5% GDP in 2012.With world class Hospitals coming up in India, the Health care industry is bound to grow. The private Helicopter companies have already started the discussion or provided services on Helicopter Emergency Medical Services, which can play an important role in transporting medical tourists to places of their choice for rest and recuperation. Summary: As the Helicopters have the advantage of linking inaccessible areas particularly in the hills and ensuring comfortable and short journeys over difficult terrain, which would take a long time by road. This sector is being expanding day by day with the increase awareness among masses about utility of helicopters for tourism purposes in the form of convenience, time saving etc. The usage of helicopter by the general public in the tourism industry is growing, especially with the regular passenger services connecting important tourist and religious places. This also caters to the requirement of large section of people, who find it difficult to otherwise commute either due to health or age considerations. Helicopter Operators in INDIA Introduction: The first civil aircraft was flown in India as early as 1953 (50 years of service), but however the growth of Helicopter Industry has been very modest from 1953 till 1986, limited to small Aviation companies. Mainly during those period, the commercial use of helicopter operated by small companies, who were mainly involved in communication and crop spraying role. The formation of Helicopter Corporation of India by the Government in 1986 (later named Pawan Hans Helicopters Limited) with a fleet of 42 helicopters provided the first boost to the Industry in the country. After the end of Cold war and introduction of “Economic reform” by the then finance minister Dr. Man Mohan SINGH under the government lead by Honorable Prime Minster Mr. RAO (Note: Dr. Man Mohan Singh is currently the honorable prime minister of India), was a shift in policy of government to slowly allow the Indian market to open to outside world and promote private sector industry development. As a result of this changes in policy, the GDP of India started to increase dramatically and is still at present one of the fastest growing economy in the world.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Classification of Helicopter Operation: Due to change in policy of government fuelled with economic growth, new private Helicopter/Airline operators started operations in India. The Helicopter operation in India can be broadly classified into four main categories:

Non Scheduled Operators (NSOP) Private Categories Para Military Helicopter operated by Central/State Government and PCUs Non-Scheduled Operators (NSOP) Currently (as of September 15,09) there are 15 SCHEDULED OPERATOR’S PERMIT HOLDERS (509 aircraft registered in India) and 122 NON-SCHEDULED OPERATOR’S PERMIT HOLDERS (179 Helicopter registered, 139 aircraft registered of different manufacturers and 7 Hot Air Balloons registered) NOTE: Source DGCA-India. DGCA of India has provided operational permit to 65 non-scheduled operators, which are mainly used for Heli Tourism, to meet public sector demand for pilgrimage and/or for other purposes. Most of these non-scheduled operators has less then 6 helicopters in operation, however in this report the biggest four NSO with their fleet size are shown.

PawanHans Helicopter (36), Global Vectra Helicorp (26) Deccan Aviation (9) United Heli Charters (7)

As of today, Bell Helicopter dominates this market with 87 helicopters of different categories, followed by Eurocopter with 47 helicopters. The graph below shows number of helicopters per manufacturer registered in India.

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

Non Scheduled Helicopter Per Manufacturer

417

87

3

46

4 17 2 2 1

1 2 3 4 5 6 7 8 9 10 11

Manufacturer

Num

ber o

f Airc

raft

Series1

Graph: Number of Non Scheduled Helicopter Per Manufacturer

Manufacturer Legend: 1-HAL built aircraft (4), 2 – AgustaWestland (17), 3- Bell Helicopter 87) , 4 - Enstrom Helicopter Corporation (3) , 5 – Eurocopter (46), 6 - Kazan Helicopter Plant (4), 7 - MD Helicopters (1) , 8- Robinson Helicopter Company (7), 9 - Schweizer Aircraft Corporation (2), 10 - Sikorsky Aircraft (2), 11- United Helicopters (1). Private Categories There are currently 15 private categories helicopter operators in India. These helicopters are either owned by big business industry like Tata Power Co. Ltd, Hindustan construction, reliances (Mumbai), training purposes or other richer peoples. As of 2008, there were 23 private categories helicopter registered in India and in operation. The bigger Private categories helicopter operators are Tata Company with 4 helicopters and Essar Power (Mumbai) with 3 helicopters. The graph below shows the number of helicopter in operation per manufacturer in private categories. This market is also dominated by Bell Helicopter with 15 Bell helicopter out of 23 helicopter registered. Eurocopter position in terms of market value is very weak in private categories sector with only 1 helicopter in operation. MD Helicopter has 4 helicopters in operation followed by AgustaWestland with 2 helicopters in operation. There are only five-helicopter manufacturer in this market,

Bell Helicopters Eurocopter AgustaWestland Robinson Helicopter

HAL

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Bell Helicopter (15), MD Helicopter (4), AgustaWestland (2 Helicopters), Eucopter (1 Helicopter) and finally Schweizer Aircraft Corporation (1 Helicopter).

PRIVATE CATEGORY HELICOPTER

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Series1

Graph: Number of Private Categories Helicopter Per Manufacturer Manufacturer Legend: 1-Eucopter (1 Helicopter), 2- Bell Helicopter (15), 3- Schweizer Aircraft Corporation (1 Helicopter), 4-MD Helicopter (4), 5- AgustaWestland (2 Helicopters). Para Military: There is only one Helicopter operator BSF (Boarder Security Board) operating 8 aircrafts. They are operating 1 Cheetah SA315 (Build by HAL with assistance from EADS), 1 Chetak (Manufactured by HAL with assistance from EADS) and 6 Mi 17-1V (Manufactured by either Kazan Helicopter Plant or MIL Moscow Helicopter Plant). The manufacturer of two helicopters Cheetah and Chetak operated by BSF is HAL with assistance from European company. Helicopter operated by Central/State Government and PCUs: There are currently 17 company operating helicopters in India. These are either owned by State Government (Bihar, Andra Pradesh, Gujarat e.g.), Coal India Ltd., Kudremukh Iron Ore, ONGC. There are currently 28 helicopters registered in this area, which includes either helicopter manufactured in India by HAL (Chetak, Dhruv e.g.) or, from other manufacturers (Bell 407, EC 135 e.g.).

Bell Helicopter MD Helicopter

Agusta Westland

Eurocopter (Weak)

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OVERVIEW OF HELICOPTER OPERATION IN INDIA Due to the very delicate nature of VIP/VVIP operating in these helicopters and few recent fatal accidents, where in one of the chief minister of state government died in a helicopter accident; SAFETY is given high most priority in this kind of operation. The below graph shows the number of helicopter in operation within Goverment/PSU’s sector; the market is dominated by HAL, followed by Bell Helicopter and Eurocopter. It is also to be noticed that AgustaWestland are slowly increasing their presence in this sector.

GOVERMENTS/PSU's HELICOPTER

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AIRC

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Graph: Number of GOVERNMENT/PSU’s Helicopter Per Manufacturer Manufacturer Legend: 1-AgustaWestland (3 helicopters), 2- Bell Helicopter (6), 3- Eucopter (5 Helicopter), 4- HAL (12 Helicopters), 5- Sud Aviation (HAL)(2 Helicopters).

AgustaWestland

Bell Helicopter

Eurocopter

HAL

Sud Aviation (HAL)

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

HELICOPTER MANUFACTURER IN INDIA

Hindustan Aeronautics Limited

Prepared by Minesh POUDEL 27

OVERVIEW OF HELICOPTER OPERATION IN INDIA Introduction: As of today, Hindustan Aeronautics Limited (HAL) is not only helicopter manufacturer. HAL is based in Bangalore, India, and is one of Asia's largest aerospace companies. Under the management of the Indian Ministry of Defence, this public sector company is mainly involved in aerospace industry, which includes manufacturing and assembling aircraft and helicopters, navigation and related communication equipment, as well as operating airports. HAL built the first military aircraft in South Asia and is currently involved in the design, fabrication and assembly of aircraft, jet engines, helicopters and their components and spares. It has several facilities throughout India including Nasik, Korwa, Kanpur, Koraput, Lucknow, and Hyderabad. The German engineer Kurt Tank designed the HF-24 Marut fighter-bomber, the first fighter aircraft made in India. Hindustan Aeronautics has a long history of collaboration with several other international and domestic aerospace agencies such as the Eurocopter, Airbus Industries, Boeing, Sukhoi Aviation Corporation, Israel Aircraft Industries, RSK MiG, BAE Systems, Rolls-Royce plc, Dassault Aviation, Dornier Flugzeugwerke, Aeronautical Development Agency and Indian Space Research Organisation. After India gained independence in 1947, the management of the company was passed over to the Government of India and was renamed as Hindustan Aeronautics Limited (HAL). Though HAL was not used actively for developing newer models of fighter jets, the company has played a crucial role in modernization of the Indian Air Force. In 1957 company started manufacturing Jet engines (Orpheus) under license from Rolls-Royce at new factory located in Bangalore. During the 1980s, HAL's operations saw a rapid increase which resulted in the development of new indigenous aircraft such as HAL Tejas and HAL Dhruv. HAL also developed an advanced version of the MiG-21, known as MiG-21 Bison, which increased its life-span by more than 20 years. HAL has also obtained several multi-million dollar contracts from leading international aerospace firms such as Eurocpter,Airbus,Boeing and Honeywell to manufacture aircraft spare parts and engines. HAL has build number of Helicopter under “Licenced production” in the past and has also itself developed/manufactured as an “In-house developed products” through co-operation with International manufacturing companies. In-house developed products

o Dhruv — Advanced Light Helicopter o Light Combat Helicopter (under development) o Light Observation Helicopter (under development) o Indian Multi-role Helicopter (under development)

Licenced production (Helicopter, Aircraft and Jet Fighter)

• Harlow PC-5 — first aircraft assembled by HAL • Percival Prentice — 66-built by HAL • Mikoyan-Gurevich MiG-21 — FL, M, Bis and Bison upgrades variants • Mikoyan-Gurevich MiG-27 — M variant • SEPECAT Jaguar— IS, IB and IM variants • Adour Mk 811 for Jaguar

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OVERVIEW OF HELICOPTER OPERATION IN INDIA

• Adour Mk 871 for BAE Hawk Mk 132 • HAL Ajeet — improved version of the Folland Gnat • Aerospatiale SA 315B Lama — HAL Cheetah, Lancer, Cheetal Variants • Aerospatiale SA 316B Alouette III — HAL Chetak, Chetan Variants • Dornier Do 228 and Garret-5 engine • HAL HS 748 Avro • Sukhoi Su-30MKI • BAe Systems Hawk Mk. 132 — scheduled production of 42 aircraft

Short Summary in Defence Sector:

Due to almost around 7 percent expenditure of total country budget in defence and the immediate need of acquire fighter and Indian Multi-role Helicopter, India’s has introduced defense offsets policy during the 11th five-year plan period (2007-11). The Government of India plans to bring back around $10 billion as an offset policy into the country. India plan is to look for direct offsets in all-capital acquisitions of the defense in order to strengthen the capabilities of its indigenous industry. The government recently announced the new policy for capital acquisitions in which the minimum requirement is of 30 percent offsets in all acquisitions where the purchase cost exceeds Rs.3 billion. Nearly 80 percent of all offsets are in the area of aerospace. The policy was introduced but will much depend on the ability of the Indian defense industry to absorb the offset and the export potential generated. The aim of such a policy is to increases industrial base and it is believed that the offsets policy will further enhance its technical and manufacturing potential, in addition it will also help to increase investments in domestic research and development. This Offsets provisions will be applicable to capital acquisitions, which are categorized as outright purchases from a foreign or Indian vendor or purchases followed by licensed production. NOTE: The Defense Acquisition Council can prescribe offset percentages higher than 30 percent, if required as per the best value it can generate. It may open a door to manufacture in India under offset (Where Indian Private sector too can participate). The concept and benefits of offsets can also be applied to leverage large purchases by leading Indian companies individually or through consortiums, which Indian government thinks that would strengthen their collective bargaining abilities. Short Summary of Recent International Co-operation in Helicopter Secter:

USTDA-DGCA India Co-operation (US-Avation Cooperation Program:

USTDA awarded a grant on August 28, 2009 to the Directorate General of Civil Aviation (DGCA) in India to help update regulations and practices governing helicopter operations. The USTDA grant, to be carried out under the auspices of the U.S.-India Aviation Cooperation Program (ACP), will aid in the growth and

Prepared by Minesh POUDEL 30

OVERVIEW OF HELICOPTER OPERATION IN INDIA development of India’s civil aviation sector by fostering increases in the volume of helicopter operations in the expanding Indian market. The grant agreement is valued at $501,849 wherein Bell Helicopter will provide expertise to improve India’s expanding helicopter sector and will expand opportunities for increased trade between our two countries. The project termed as “Helicopter Aviation Safety Technical Assistance project”, will fund technical assistance to improve India’s helicopter safety through pilot training and certification, accident investigation training, heliports, and helicopter flight routes. Tata and Sikorsky agreement: The Tata Group and Sikorsky Aircraft Corp signed an agreement on June 2009 to manufacture Sikorsky S-92 helicopter cabins in India. The first cabin is scheduled for delivery in late 2010 from a new greenfield facility at Hyderabad. Global Vectra Helicorp Ltd Co-operation: Global Vectra Helicorp Ltd has opened a new maintenance hangar at Juhu Airport in north Mumbai. The offshore support operator has India’s largest fleet of Bell 412s and has introduced Eurocopter’s EC155B1 in offshore missions there. The facility will be of $2.75 million (€1.76) to provide excellent support facilities for our growing helicopter fleet. Eurocopter Co-operation with India: Eurocopter and Pawan Hans Helicopter Ltd. (PHHL) have enjoyed close ties since 1983. Eurocopter and PHHL, the world’s number one civil operator of the Dauphin helicopter, recently added a new chapter to their long history of cooperation when a major retrofit operation was begun on the company’s helicopters. The goal is to increase safety levels and meet new objectives for competitiveness in the oil & gas sector. 12 of the 27 Dauphins (18 AS365 Ns and nine AS365 N3s) in the Indian operator’s fleet were retrofitted between late 2006 to the end of 2007. PHHL has also been a certified Eurocopter maintenance center since 2002, and is constantly increasing its maintenance and repair capacities for the aircraft of the Dauphin family. Eurocopter has also provided the highest levels of support in this area by assigning tech reps to India, providing training for Indian engineers, and conducting workshops to improve processes. NOTE: This summary does not provide the global overview of co-operation activities between India and Eurocopter nor other initiatives taken by other Helicopter manufacturers. The aim of this summary is just to highlight the fact that lot of co-operation are underway, with new foreign policy introduced by India. (End of cold war, nuclear co-operation agreement in between USA and India, growing media rivalry between China and India, Unstable Political scenario in surrounding countries (SAARC countries: Pakistan, Afghanistan, end of civil war in Sri Lanka, unstable political condition of Nepal, Rise of extremist in Bangladesh e.g.).

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OVERVIEW OF HELICOPTER OPERATION IN INDIA SUMMARY: The aim of this study shows that India has a vast potential to be a major market for Eurocopter in the coming years. With the introduction of “economic reform package” after the end of Cold war, initiated by current Honorable Prime Minister of India, there has been tremendous growth in all sectors (Construction, traffic flow, health care, aviation, Infrastructure development e.g.). The economy of India has increased drastically in the last ten years and is just second to China in terms of GDP growth at the rate of around 7-8 percentages increasing per year. Even today during the recession period in Global economy, the GDP of India, though has decreased a bit compared to previous years, but is expected to pick up again in coming future. In addition, the growth of manufacturing sector, IT industries, outsourcing sector, medical service and not to forgot the likelihood of significant tourism development in vast and diverse places of India, points to the fact that Air traffic will increase drastically in the coming years. The growth of these sectors gives optimistic results that in addition to increase in passenger carrying aircraft, the Helicopter operations will increase in a continuous basic. It is estimated by Society of Rotary wing of India that by 2010, the number of helicopters will almost double compared to 2008. In addition, that means, in the coming decade, India will be one of the promising markets for Helicopter manufacturer. Furthermore, due to increasing instability in the surrounding countries, the defense budget of India is increasing. Due to increasing accident/incident related to VVIP/VIP helicopter operation, there is not only immediate need of more helicopters for Boarder security forces, but also safe and reliable helicopters for VVIP/VIP transportation. All these points out to the fact that the need for civil as well as defense helicopter will increase significantly in the coming years in India. However, this analysis has soon that Bell Helicopter is leader in all sector of Indian market (Non scheduled operator, private owned operators e.g.), and hence immediate measures to increase the presence of Eurocopter in India is required.

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