![]() Financial Daily from THE HINDU group of publications Wednesday, Jun 22, 2005 |
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Opinion
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Editorial Aviation on wings
SOME QUIET MAY have returned to Le Bourget after the hectic week-long Paris Air Show, but the same cannot be said of the world of civil aviation. Drawing more exhibitors and trade visitors than ever before, the 46th edition of the Paris Air Show was one of the most significant indicators of the take-off of the aviation sector that was all but grounded after 9/11, the global economic slowdown, the SARS outbreak, the Iraq war, and the rising crude prices. At the Paris Air Show, there was as much action on the ground as in the air with aircraft-makers scrambling to take advantage of the reviving civil aviation sector. The aerobatics and dog-fights over Le Bourget were mainly between the civilian aircraft majors Boeing and Airbus. Though Airbus had taken off shakily, with its key A-380 programme behind schedule, it did end the week landing almost 260 firm orders and commitments worth $29.5 billion. Rival Boeing, which showcased its 777-200LR Dreamliner, could fly away with 145 orders worth $12.4 billion. Certainly, a healthy order book for the two, though there are predictions of the competition between the two becoming cut-throat as an oversupply position develops. Another dimension is the battle brewing at the World Trade Organisation on lawsuits from the United States and the European Union, each accusing the other of subsidising Boeing and Airbus respectively. There was considerable action among the second-line players with ATR, Bombardier, Embraer and Gulfstream eyeing the low-cost airlines and the corporate markets; this segment will see more action with the launch in Le Bourget of Dassault's Falcon-7X and with Sukhoi's Russian Regional Jet programme ready for take off. As expected, the Airbus A380 flew away with the honours, its flight being a virtual show-stopper. The questions over the economics of this giant aircraft were laid to rest as the Airbus won several firm orders, including five from Mr Vijay Mallya's Kingfisher Airlines. These and the rush of other orders placed on Airbus and Boeing by established and start-up airlines announced the arrival of India on the aviation scene, and the move of the aviation market from saturated Europe/North America to developing Asia and Latin America. Though India and China have emerged significant markets, they are quite some distance away from becoming credible aerospace suppliers. As an exhibitor India was represented almost solely by HAL whose Dhruv Advanced Light Helicopter and the Intermediate Jet Trainer caught eyeballs and received good reviews. Along with the aircraft-makers, the beneficiaries were equipment and avionics suppliers, which reported "excellent enquiries". While all indications are of a good flight for the aviation industry, the less optimistic speak of cyclical trends and are not enthused by what they call the overcrowding of skies; some even talk of airlines falling out of the skies. The Civil Aviation Minister, Mr Praful Patel, has sounded his note of caution to the new airlines that have mushroomed in this country. Hopefully, aviation dreams will not so crash.
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