![]() Financial Daily from THE HINDU group of publications Wednesday, Jul 13, 2005 |
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Opinion
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Interview Logistics - Airlines `Air transport industry in good health' Mr Jean-Paul Bechat, CEO, SAFRAN, and Mr Vincent Gorry,National Executive - South Asia J. Srinivasan
"I believe that SAFRAN marked Le Bourget this year," says Mr Jean-Paul Bechat, Chairman and CEO, with obvious pride at the splash made at the Paris Air Show by the euro 11-billion French Group, created by the merger of aircraft engine-maker Snecma and defence communications giant Sagem. Joining Snecma in 1965, the 63-year-old Ecole Polytechnique engineer became its CEO in 1996, after stints at most group companies and in major projects, including the Olympus engine of the Concorde. Unable to meet the Indian journalist the SAFRAN Group had hosted at the Paris Air Show, Mr Béchat offered to e-mail answers to their questions. Also at Le Bourget was Mr Vincent Gorry, National Executive - South Asia, SAFRAN, who coordinates the Group's activities in India and the SAARC countries. An MBA and having a degree in mechanics and aeronautics from Poitiers University, France, Mr Gorry joined Snecma in 1994, and since 2001 has been involved in all the major developments of Snecma in India. Seeing India as a potential partner in the aerospace effort, Mr Gorry, who also replied by e-mail to questions on SAFRAN's India story, says the country has the engineering capability to develop and manufacture its own aircraft. Excerpts from the interview: How good an outing was the Paris Air Show for SAFRAN, especially the aircraft engines division? Mr Jean-Paul Bechat: This was an exceptional year, with demonstration flights of the A380 and the Falcon 7X, the return of the Americans, and more. As for us, I believe that SAFRAN really marked Le Bourget this year. We had stands all over, with the other engine manufacturers, with equipment manufacturers, and with our defence and security businesses. I would also like to mention two important developments, starting with our CFM56 engine family. We sold nearly 600 engines during the first five months. Today, after a flurry of orders announced during the Air Show by Airbus and Boeing, we are now at a grand total of 1,002 engines sold. Booking of some 400 engines during the week-long show is a record. The second major event is signing the contract with the French Transport Minister, Mr Dominique Perben, for a repayable advance to support development of the SaM146 propulsion system for the Russian Regional Jet, along with Sukhoi and our Russian partner NPO Saturn. This agreement is a milestone in the SaM146 project, and there is much at stake for Snecma. Is there any re-think on strategies with the world civil aviation on a high? Mr Bechat: The Air Show showed that the air transport industry is in good health, with the civil aviation sector making a strong recovery. Airbus and Boeing announced a host of orders during the show, which will of course have a very positive impact on our engines and equipment. Another major trend is the emergence of drones or UAVs (unmanned aerial vehicles). They will take on an increasing role in the defence sector. I think we can expect large-scale development of this type of application, and SAFRAN is well placed to take advantage of it. With so many aircraft buys by Indian airline operators, does it not make sense for you to set up a Maintenance-Repair-Overhaul facility in the country? Mr Vincent Gorry: We have in the past indicated to the Ministry of Civil Aviation that we are interested in a partnership for maintenance in India of CFM56 engines. However, progress on this project was pending the approval of the acquisition plans of Indian Airlines and Air India. With both choosing a significant number of aircraft with CFM56 engines, it will help us make some progress on the MRO issue. Has HAL's Dhruv ALH receiving good reviews at the air show set your group thinking more seriously of India as an outsourcing destination? Mr Gorry: We have been considering India as a potential major player in the aerospace sector for quite some time now. It is for this reason that we had proposed to HAL the co-development of the Shakti engine for the Advanced Light Helicopter. In continuation of this strategy, Snecma has decided to form a joint venture with HAL for engine components... To us it is no surprise us that the Dhruv and the other aircraft of HAL exhibited at the Paris Air Show attracted a lot of interest. Are you planning more tie-ups with HAL for its other aircraft development programmes? Mr Gorry: We will concentrate on the development of the joint venture. Of course in parallel, HAL and SAFRAN have other projects and we will communicate on them in due time. What in your view is the strength of the country? Does it have the engineering capability to build its own aircraft, both for civilian and Defence purposes? Also, does it make economic sense for it to do so? Mr Gorry: The main strength of the country is certainly the constant support and interest that it receives from the Government. This is paying off in the success of such programmes as the Dhruv and the HJT-36 (intermediate jet trainer). That way HAL has demonstrated that India has the engineering capability to develop and manufacture its own aircraft. The next step for the Indian aviation industry could be to participate in international programmes. Such programmes demand stringent quality requirements. This means progress on the technical front, higher volumes, and hence more revenues. It is this last aspect that will make the national effort durably profitable.
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