The Civil Aviation Ministry is encouraging budget carriers to induct widebody planes in order to become an international hub, Aviation Secretary Rajiv Bansal said on March 21. Speaking on the sidelines of the CAPA India Aviation Summit in Delhi to CNBC-TV18, Bansal said IndiGo showed interest and the government has given the airline approval for wet leasing.
In December 2022, IndiGo sought the Directorate General of Civil Aviation's (DGCA) approval to wet lease Boeing 777 aircraft, which will be utilised for operating flights on the Delhi-Istanbul route.
This is the first time that the carrier will induct wide-body planes into its fleet and the move also comes against the backdrop of global supply chain issues impacting aircraft deliveries. The airline will wet-lease two aircraft.
Reflecting on aircraft manufacturing in India and domestic sourcing for Air India's aircraft order, Aviation Secretary said not much aircraft or airframe manufacturing is happening in India except for certain components. He noted that Airframe manufacturing is a much bigger issue
Also Read | CAPA India Aviation Summit: Indian aviation leaders announce expansion plans and optimism for future
Bansal said Collins Aerospace has set up a facility in Bengaluru to make emergency suits that fall down during evacuation. Some avionics components are also being made in Bengaluru.
Boeing, on the other hand, is making tailfin of its aircraft in India, he said, adding that only a small percentage of manufacturing is being done domestically as big OEMs already have manufacturing facilities in place globally.
He believes it is tall ask to tell these OEMs to move manufacturing setups to India overnight as a manufacturing ecosystem develops over a period of time. Bansal asserted that OEMs would want to set up plants in India when the volumes are high and that engine makers will be the first ones to set up shops in the country.
Also Read: Jyotiraditya Scindia hopeful Indian aviation sector growth story is just taking to the skies
He added that rocket engines and aircraft manufacturing firm Safran has already committed a $100 million investment in Hyderabad.
Talking about Pratt & Whitney (P&W) engine issues, the Aviation Secretary said, the matter has been taken up with the engine maker at the highest level. He said Aviation Minister Jyotiraditya Scindia has spoken to P&W on many aircraft being grounded due to engine issues, which is impacting and impeding the growth of the aviation sector.
“We have asked them to fast forward supplies to us…P&W said it will respond on the matter by this week,” he said.
Bansal also spoke about Air India Engineering Services (AIESL), saying it is a good company, has a healthy top line and bottom line and he’s confident there will be a number of interested parties who will bid for Air India's engineering subsidiary. The reserve price will be decided closer to the date of inviting bids, he said.
On increasing tariffs at smaller airports, Bansal said, the consultation paper is out and is likely to be finalized in the coming weeks. He explained that all non-major airports are running into losses and they need to be given some return on their investment. The hike is different for three clusters of small airports, he said.
He also said that 25 airports have been identified under the National Monetization plan for PPP but at present, the government is looking at 11 airports.
Reflecting on bilateral agreements, Bansal said India has an open sky policy with all countries. Vietnam and Indonesia have asked for more frequencies to India while Russia has already been allowed more frequent flights, adding all middle east carriers are asking for additional seats but they haven't been given any yet.
(Edited by : Abhishek Jha)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | Will Amethi and Rae Bareli see the rise of Priyanka Gandhi as a dominant political figure
May 18, 2024 8:59 AM
Lok Sabha Election 2024: I.N.D.I.A. bloc to hold rally at Mumbai's BKC today
May 17, 2024 5:18 PM
In Ayodhya, voters talk of a promise fulfilled and yearning for development
May 17, 2024 2:10 PM
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM