Indian Defence Review

Many considerations figure into the optimum aircraft.  Ability to operate from short runways at high altitude airports is critical.  This will present a design challenge since a high lift wing can produce higher drag that works against range and fuel efficiency.  But low cost of operation and high fuel efficiency are a must, as is reliability and ease of support and maintenance.  Emissions should be minimized.  Also important is the number of passengers that can be carried, comfortably and safely, and passenger flight experience must appeal to the public (including those new to air travel).  Cargo handling is another key consideration.  These factors suggest that a regional aircraft best suited for India will be one that can hold more than 75 passengers.  It should be planned for growth versions that can carry 100 passengers, or more.  India should pursue a new “clean sheet” aircraft rather than a derivative of some existing design.  The aircraft should employ new generation gas turbine engines to achieve double digit reductions in fuel utilization, produce greater power and improve on emissions.  These goals appear achievable, based on various announcements of the world’s leading engine suppliers – but they will require a new powerplant (a “centreline” program, in the parlance of the industry) rather than a derivation of an existing engine.

There are existing turboprops in the market.  Bombardier’s Q-400 and the ATR‑72 both carry about 75 passengers and are optimized for short-haul routes.  But neither employs “next generation” advances in materials, propulsion, aerodynamics and flight controls.  Both are at the practical limits of their existing design.  There is room in the market for a newturboprop that can carry more passengers and operate efficiently from small airports over regional routes.  Powerful advances have occurred in many areas of aviation design over the past decade, but few have been realized in turboprop-powered aircraft, thus far.

If it pursues a “clean sheet” advanced turboprop regional aircraft as a national project, rather than accept an existing design and accommodate its limitations, India can design to its unique requirements and the business needs of its carriers.  This may mean that the program takes a decade to reach fruition – but that is par for the course, considering the experience of China and Brazil, for example.  And India can “aim high.” The long-term objective is to build hundreds of airplanes that will be relied upon by Indian flag carriers for hundreds of domestic routes.  The Government can encourage domestic adoption by tax benefits or other subsidy or preference.

Outside of India, a next generation regional turboprop can find markets in other countries, such as the Philippines or the Indonesian archipelago,with similar tension between growing demand for domestic air travel and infrastructure limitations.  These markets similarly will favour airplanes that are inexpensive to operate and relatively easy to service.

India cannot achieve this promise by going it alone.  Nor will it get done by reliance upon the DPSUs.  Rather, to succeed such a project virtually “demands” the active commitment of foreign airframe and engine prime contractors.  To get that commitment, with all that it implies as to transfer of technology and sharing of IP and know-how, India must end its pattern of active and passive frustration of foreign investment and ownership in aerospace industries.

In fact, this national aerospace project would be a great vehicle for India to “pilot” reforms which, once demonstrated, could be employed in other areas where national industrial base growth is sought and foreign assistance is needed.  India could create a specially-chartered national agency tochampion this airplane project.  Suitably empowered, this agency would resolve permits and licenses, clarify disputes among agencies and serve as a “single window” for permits.  Corruption risks could be greatly reduced by concentrating the decision making authority in a few officials and using modern information systems that assure high transparency and efficient decision-making.  It would act as the accountable national authority to oversee the private sector partners who manage the design, development, test and production of the aircraft.

For such a project, India must involve its leading private sector industrial firms and resist the political demands of the DPSUs to dominate the project.  India also must welcome new foreign investment andactively encourage the participation of existing foreign-owned companies already doing business in India.  In addition, participation should be open to Indian companies whose products are “dual use,” suitable for military or civil application.  Offset obligations, owed by foreign sellers of military equipment, can be leveraged by awarding “multipliers” on credits earned though investments or technology transferred to the new national aerospace program.

The national aerospace program must be commercially viable.  That presents some hard decisions up-front.  The development expense likely will be several billion dollars.  The market is too uncertain for private companies to shoulder that expense and risk.  Accordingly, the Government must be prepared to underwrite the development, and perhaps initial production as well.  This may mean abbreviation or early termination of other projects, such as several cited above, that are not producing results sufficient to justify their costs.  The national benefits of a successful advanced regional turboprop aircraft project are enormous.  The Government’s investment can be recouped in a number of ways, such as manufacturer payment of license fees or use of debt financing for later project stages.

Of fundamental importance, a national aerospace project to field an Indian advanced regional turboprop aircraft would be a civil project intended for commercial application. This will greatly reduce the development cost and time to flight, and will focus design and development attention on the low operating costs and passenger safety and comfort that are key to profitable operation by commercial air carriers.  Foreign participation will be facilitated as technology release and export are much less problematic when the product is civil in character.  It is fine to anticipate military derivatives, and the design should recognize eventual military applications, but the project should not be driven by military requirements.  The market is too small, the costs are too highand a military program will take too long.  Moreover, for near-term military airlift needs, India has many choices, as evidenced by the recent decision to purchase additional C-130J aircraft from Lockheed Martin.

A national aerospace project, as here described, requires a long-term vision, an investment mentality and a business-like approach.  These may be different from the norm of Government-sponsored projects in India, but they can be accomplished with the will and the necessary organizational and financial commitment.  As the project proceeds, even before a first aircraft taxis out to test, it will help India to develop an indigenous aerospace industrial base.  As that base matures, its benefits to India’s economy are self-evident.  It also will assist India in realizing the long-held national goals of achieving genuine, world-class indigenous aerospace and defence capabilities.  More Indian companies can occupy roles as trusted suppliers in the global aerospace supply chain.  A successful advanced turboprop aircraft, once certified under international standards, could position India to exploit international markets with a product that is distinguished from of other rivals.  India can become, at last, an aerospace leader and aviation exporter.

Originally published in India Law News, Volume 5, Issue 1, Winter 2014.  © 2014 by the American Bar Association