Despite sops, aircraft maintenance will not be competitive

The aircraft maintenance, repair and overhaul (MRO) industry in India will not be in a position to compete with existing facilities in Singapore and Dubai, despite sops proposed by Finance Minister P. Chidambaram in Budget 2013-14.
 Chidambaram has proposed extending the period for consumption/installation of parts and testing equipment for the MRO industry to one year from three months earlier. In addition, he has extended the exemption of basic customs duty for parts and testing equipment for MRO of aircraft.
Commenting on the Budget proposal relating to the sector, Amber Dubey, Partner and Head Aviation, KPMG, felt that Indian MROs still face high service tax and airport charges which continue to hurt their competitiveness with Dubai, Singapore, Kuala Lumpur and Colombo.
He, however, felt that the Budget been “disappointing” for aviation as the expectations of relief in aviation turbine fuel and MRO taxes and funding support for regional airports had been dashed.
 “It is a small step in the right direction. The one year window for consumption/installation of spares is very realistic,” said Vivek Gaur, Managing Director, Air Works,
The Director, Delhi International Airport Ltd, Narayan Rao, felt that it was too early to say whether the implementation of the proposal would provide competitive advantage.
“The spin-off effect of having an MRO in India would be good in employment generation and other related activities,” said Rao.
 Analysts said the Budget had no major sops for the aviation and MRO sector. However, the proposed concessions for aircraft maintenance facilities are expected to help airline companies reduce maintenance costs and enhance financial viability, industry watchers say.
 “The Budget has proposed certain measures to promote mobilisation of funds for infrastructure sector in general that could also facilitate investments in the airport sector,” said Peeyush Naidu, Director, Deloitte Touche Tohmatsu India.
 The Budget has also proposed providing Rs 5,000 crore possibly as equity contribution to the State-owned Air India, while the Maharaja will have to garner Rs 1,318.60 crore from its internal resources.
The funds from internal resources will be used for pre-delivery payments of six Boeing 787 aircraft which are to be delivered in 2013-14, the setting up of a GE Engine facility and purchase of spare engines for aircraft.
Golden cheer
However, Indians returning home after residing abroad for over one-year or transferring residence have something to cheer.
The Finance Minister has proposed raising duty-free allowance on jewellery for an Indian male passenger to Rs 50,000 from Rs 10,000 at present and to Rs 100,000 from Rs 20,000 for a women passenger.
http://www.thehindubusinessline.com/industry-and-economy/logistics/despite-sops-aircraft-maintenance-will-not-be-competitive/article4462305.ece?homepage=true&ref=wl_home

Dreamliner sticks with lithium-ion battery

A SENIOR Boeing executive said he and Japanese government officials had discussed a "permanent" solution to fix problems that have dogged the grounded Dreamliner.
Raymond Conner, executive vice president of Boeing and head of commercial aeroplanes, said they would not abandon the lithium-ion batteries used in the planes which are at the centre of a worldwide safety probe.
 He also denied reports that the planemaker was at odds with its battery supplier over how to fix the troubles, saying "we are great partners".
 The next-generation 787 was ordered out of the skies in January following a series of incidents.
 "It is not an interim solution. This is a permanent solution," Conner told reporters after meeting Transport Minister Akihiro Ota to discuss problems that caused one battery to catch fire and another to emit smoke.
 Asked if Boeing was considering ditching the Japanese-made lithium-ion batteries from the 787, Conner said: "I see nothing in this technology that would tell us it's the appropriate thing to do."
 Conner did not give any details of the curative package for the Dreamliner, saying only that he was "confident" in it.
 "The solution set that we have put in place provides three layers of protection and we feel that this solution takes into account any possible event that could occur, any causal factor that could cause an event.
 "And we are very confident that this fix will be permanent and will allow us to continue with the technology," he said.
 Japan's transport ministry said it was the first mission to the country by Boeing's headquarters executives since the Dreamliner fleet was grounded.
 The visit came as the Wall Street Journal reported Boeing was in disagreement with GS Yuasa, the Japanese company that makes the lithium-ion batteries.
 Boeing last week told the Federal Aviation Administration and the US Department of Transportation what it intended to do to remedy problems behind the incidents involving Japanese carriers All Nippon Airways (ANA) and Japan Airlines (JAL).
 The US aircraft giant, which has bet heavily on its lightweight plane at a time when airlines are eager to slash fuel costs, desperately wants to get it back in the air.
 But the paper, citing sources familiar with the matter, said GS Yuasa believes Boeing's package of fixes will not eliminate all possible risks to the power pack.
 A probe has found short-circuits caused a rapid rise in battery temperatures, but the search for the root of the short-circuit has so far proved elusive.
http://www.news.com.au/travel/news/dreamliner-sticks-with-lithium-ion-battery/story-e6frfq80-1226588260320#ixzz2MGlP9JuN