19. February 2007


Date: 19. Feb. 2007
Indian software firms say they are well placed to grab a bigger share of the aerospace market as airplane makers and defence companies look to control costs by outsourcing design and management systems.
Asia's fourth-largest economy is already a hub for global corporations to outsource software services from application development and system integration to supply chain management.
Global spending on engineering services was $750 billion in 2004, with aerospace accounting for 8 percent, and could rise to $1.1 trillion by 2020, according to the National Association of Software and Service Companies, India's IT industry lobby group.
The total offshore engineering spend is expected to grow to $150-$225 billion by 2020 and India, with its talent pool and experience in engineering services, could pick up 25 per cent of that, according to the association.
"Aerospace as a vertical is being focused more than the others, especially by companies like ours whose core strength lies in engineering," M Ashok Kumar, executive vice president of HCL Technologies Ltd's aerospace practice, said.
HCL Technologies, India's fifth-ranked software services exporter, has over 30 aerospace customers including plane makers Boeing Co and Airbus. "Given the current business scenario, we're highly optimistic that the future is bright and the sky is the limit," Kumar said.
Boeing would increasingly use Indian companies to get technology work done cheaper, Dinesh Keskar, senior vice president of Boeing's commercial airplanes division, told Reuters at the Aero India 2007 earlier this month.
The services provided by Indian software companies to aerospace firms include aircraft design, development of on-board electronics systems such as flight control and engine control, and ground systems like air traffic management.
Offset Policy Boost
Analysts say Indian's 2005 offset policy, which requires foreign aerospace firms to spend a percentage of the value of any Indian orders in India, such as in establishing a training centre or buying services and supplies from local companies, was also likely to boost outsourcing.
Source: http://economictimes.indiatimes.com


Date: 19. Feb. 2007
Low-cost carrier Spicejet on Monday said it has allotted 1.30 crore equity shares to BNP Paribas Arbitrage Fund out of the proposed preferential issue of 7.20 crore equity shares for over Rs 68 crore.
BNP Paribas Arbitrage Fund acquired about 1.30 crore shares, representing 5.43 per cent stake in the airline company through the preferential allotment, Spicejet informed the BSE.
The shares so allotted were issued at a price of Rs 52.69 per equity share, raising an amount close to Rs 68 crore, the company has said in an announcement.
Other investors apart from BNP Paribas, who also picked up significant stakes in Spicejet, are Tata Group, Ishtitmar, Telemnix, Goldman Sachs and UK's KBC Fund.
Spicejet had informed the Bombay Stock Exchange recently that it would offer equity shares on preferential basis to various foreign and domestic investors.
In December, it had planned to sell $80 million worth of shares on a preferential basis. The company had, however, received offers amounting to $118 million. Texas Pacific group, a leading global private investment which also wanted to invest in the carrier later withdrew the offer.
Spicejet's offering of shares on preferential basis was aimed at raising funds for non-aircraft capacity expansion purposes like, investment in engineering and strengthening call centers.
Source: http://economictimes.indiatimes.com


Date: 19. Feb. 2007
To keep pace with the massive growth in passenger and air cargo traffic, about 2,000 new flights would be added in the summer schedule, effective from March end.
Addressing the Parliamentary Consultative Committee meeting here, Civil Aviation Minister Praful Patel also informed the MPs that his Ministry had moved a note to the Foreign Investment Promotion Board (FIPB) for allowing 100 per cent FDI in sea plane operations to promote tourism and provide connectivity along India's vast coastline.
The meeting gave special emphasis on the expansion of air connectivity in the Southern part of the country, which accounted for about one-third of the nation's share, an official spokesperson said.
Total passenger traffic in 2005-06 had gone up by 24 per cent, aircraft movements by 17 per cent and air cargo by 10 per cent, he said adding that the total passengers who travelled were 73.35 million, of which Southern India accounted for 22.24 million.
Issues relating to aviation security also came up for discussion at the meeting, the spokesperson said adding that the members raised issues like ground handling policy, congestion charges, performance of private airport operators, pilot training and acquisition of small aircraft by state-owned carriers.
Source: http://www.newkerala.com


Date: 19. Feb. 2007
The corporate and the business community of the state are reportedly “shocked” at Air Deccan’s sudden decision to withdraw the Ranchi-Raipur flight operations from March.
Sources in Air Deccan confirmed that there would be no flights between Ranchi and Raipur after March 25.
They insisted that it is a temporary decision and flights could resume after some time.
Officials said the company is undertaking a lot of planning to link more new sectors of the country. The planning has compelled the company to suspend the Ranchi-Raipur operations for some time.
The travel agents confirmed that the occupancy rate in this route was more than 80 per cent.
“There is a demand for tickets in this sector. It is a little puzzling why the company is suddenly ceasing operations in this route,” said an official of a leading travel agent.
“I have business interests in Chhattisgarh. Now that Air Deccan has decided to withdraw services, it would create immense problems for me,” said Vijay Sarawgi, owner of High Tech Randel, a firm presently engaged in making rural roads in Chhattisgarh.
Businessmen engaged in the mining trade here, who frequent Raipur, and traders engaged in rice business who get material from outside, are the worst hit.
In the absence of flights, Chhattisgarh-bound passengers would have two options.
“Either we go to Tatanagar and board a train, or take a train from Ranchi, get down at Jharsuguda and take a connecting train to Raipur,” said a trader.
Source: http://www.telegraphindia.com


Date: 19. Feb. 2007
In an effort to provide better connectivity to smaller cities across the country, the Union Government was contemplating introduction of 80-seater small aircraft, Civil Aviation Minister Praful Patel on Monday said.
More smaller cities would get connected in the near future for which smaller aircraft would be acquired, he told reporters after attending the Parliamentary Consultative Meeting on Civil Avaiation here.
The Civil Aviation Ministry was also looking into the possibility of connecting various pilgrimage centres, including Tirupati, Sabarimala, Vaishno Devi, Ajmer Sharif and Shirdi, which can be developed into a good aviation network.
"We are looking into all the issues," he said. On the proposed Air India-Indian merger, he said it was 'very much in the process'. The issue had been discussed by the Group of Ministers and the next meeting would be held on February 21, he said.
Issues like stamp duty had been resolved. The Minister said he had also met various unions and assured employees that their future would be protected. Merger would bring in better parity also, he said.
It was important that the merger takes place. When AI and Indian Airlines were started, they enjoyed a monopoly.
Now, many private airlines were operating in the domestic and international routes. 'Our carriers should also be able to effectively compete with them,' he said.
Source: http://www.dnaindia.com