netrashetty
Netra Shetty
Interstate Battery System of America, Inc., a.k.a. Interstate Batteries, is a privately-owned company that markets automotive batteries manufactured by Johnson Controls through independent distributors to more than 200,000 automotive shops worldwide.[citation needed] The company is based in Dallas, Texas. BSA also markets marine/RV, motorcycle, lawn and garden, and other lines of batteries in the starting, lighting and ignition (SLI) markets.
Its retail stores, the Interstate All Battery Centers, are the second-largest[citation needed] chain of franchised retail battery stores.
[edit]
As India further expands its fleet capacity – currently about 300 aircraft criss-crossing the country’s vast airspace – aircraft manufacturers and aero engineering companies are eyeing the $800 million maintenance, repair and overhaul (MRO) market in India, a sector in which India is underserved by aviation standards. The MRO market is growing at about 15 percent a year. Several aircraft and engineering companies, including: Air India, Indian, Airbus Industries, Boeing, Lufthansa Techniks, Snecma, Hindustan Aeronautics Limited, Air Works India and Max Aerospace & Aviation Ltd, Hamilton, Hyderabad Aircraft Maintenance Company Private Limited etc., service this market.
Both Air India and Indian Air have their jet and engineering shops in Mumbai and Delhi respectively which are equipped to carry out `C' checks but constraints on their capacities often lead to the two carriers outsourcing major engine repairs to workshops in Korea, Hong Kong and Germany. While for each A-320 aircraft a `C' check costs between $300,000 and $500,000, for bigger aircraft of Air India the cost can go up to $1.5 million per aircraft.
With aircraft deliveries in India scheduled on a fast track over the next five years, MRO is all set to emerge as a big-time aviation business in the country. Among the Government of India-owned airline companies, Air India is all set to obtain 17 new aircraft from Boeing by this year-end as part of its contract for the purchase of 68 aircraft, Indian will purchase 43 new aircraft from Airbus Industries. Among private carriers, Jet Airways has plans to procure aircraft worth $3.2 billion from Airbus and Boeing and IndiGo has ordered 100 A-320 aircraft. Kingfisher and Air Deccan have also opted for the A-320 family while Spice Jet has placed orders for Boeing 737-800 aircraft.
Low-cost carriers (LCCs), including Air Deccan and Go Air are in the process of forming joint ventures with foreign firms to set up maintenance, repair and overhaul (MRO) facilities in India. Currently, these carriers have to either fly their aircraft to Abu Dhabi, Singapore or Belgium for secondary services. The demand for MRO is expected to increase further as many of the Indian airline companies plan fleet expansion.
India’s economic reforms created significant opportunities for private jet companies such as Kingfisher and Jet Airways to start their operations. Jet Airways was established on 3 May 1991 with a fleet of four Boeing 737-300 aircraft, with 24 daily flights serving 12 destinations. Today, Jet Airways is the largest airlines in the country operating 101 aircraft together with JetLite (formerly Sahara) its low cost airline. Other major airlines include Deccan Air which started operations in 2003 has since been acquired by Kingfisher Airlines, a premium airline operator that started its operations in the year 2005. The Deccan Air and Kingfisher combine has a fleet size of 84 aircraft.
Contents
[hide]
1 Metrics
2 Industry Players
3 Buyers of Services
4 Market Entry
5 Market Issues
6 Sources
7 Related ResearchWikis
Metrics
The engine overhaul market comprises the largest segment in Indian MRO segment worth $174 million and is expected to grow to $490 million 2014. The state owned airlines have developed capabilities for engine maintenance and the private airlines routinely source their needs from independent MROs. In India, 80% of airframe maintenance is done in-house by the airlines themselves.
OEMs have also developed a significant market share in the component overhaul market in India. The market size of the component overhaul market was $120 million in 2007 and is expected to grow to $204 million by 2014. Modifications is another smaller market in terms of size. The 2007 market was worth $43 million and is expected to be $77.5 Million by 2014.
The percentage of the maintenance market is: Engines – 40 percent; Modifications – 7.3 percent; Airframe (Heavy) – 12 percent; Components – 20 percent; and Line maintenance – 17 percent.
Industry Players
While leasing is a popular mode for aircraft acquisition world-wide, in India many new airlines have opted for acquisition through purchase. This model puts the onus of maintenance on the airlines themselves. So, the airlines are required to enter into comprehensive maintenance contracts. The following chart shows the maintenance relationships established by various airlines.
Buyers of Services
All the major Indian airlines are the prospective buyers (Air India, Indian, Jet Airways, Kingfisher Airlines, Go Air, IndiGo Airways, Paramount, etc.) In addition to these airlines the non-scheduled airlines - chartered airlines operators and corporate-owned aircrafts – would be the purchasers of the MRO services.
Market Entry
Currently, both existing and emerging Indian MROs have developed threshold competencies that satisfy both end-user needs and regulatory requirements. However, the entry of newer participants in this high growth market is likely to lead to increased competition and compel them to proactively invest in expanding their competencies even further. In particular, emerging MROs need to work innovatively in both providing services and creating competitive pricing strategies. Developing a total solution portfolio is a key success factor.
MROs that are able to offer a comprehensive portfolio of service products can suitably position themselves as long-term strategic partners to the operators adopting the favored outsourcing strategy.
Market Issues
Indian tariffs are still among the highest in the world. These are been reduced year on year to conform with WTO regulations. Presently all the products for this sector can be freely imported into India. The importation of aircraft parts/components is subject to custom duties. There are no restrictions on the import of aircraft parts/components into India. The components of the total import duty include a basic duty (applied on the cost insurance freight (CIF) value of goods); additional duty (popularly called countervailing duty), which is equivalent to the excise duty on similar articles manufactured within the country; a special additional customs duty; and an educational cess of 3 percent.
Its retail stores, the Interstate All Battery Centers, are the second-largest[citation needed] chain of franchised retail battery stores.
[edit]
As India further expands its fleet capacity – currently about 300 aircraft criss-crossing the country’s vast airspace – aircraft manufacturers and aero engineering companies are eyeing the $800 million maintenance, repair and overhaul (MRO) market in India, a sector in which India is underserved by aviation standards. The MRO market is growing at about 15 percent a year. Several aircraft and engineering companies, including: Air India, Indian, Airbus Industries, Boeing, Lufthansa Techniks, Snecma, Hindustan Aeronautics Limited, Air Works India and Max Aerospace & Aviation Ltd, Hamilton, Hyderabad Aircraft Maintenance Company Private Limited etc., service this market.
Both Air India and Indian Air have their jet and engineering shops in Mumbai and Delhi respectively which are equipped to carry out `C' checks but constraints on their capacities often lead to the two carriers outsourcing major engine repairs to workshops in Korea, Hong Kong and Germany. While for each A-320 aircraft a `C' check costs between $300,000 and $500,000, for bigger aircraft of Air India the cost can go up to $1.5 million per aircraft.
With aircraft deliveries in India scheduled on a fast track over the next five years, MRO is all set to emerge as a big-time aviation business in the country. Among the Government of India-owned airline companies, Air India is all set to obtain 17 new aircraft from Boeing by this year-end as part of its contract for the purchase of 68 aircraft, Indian will purchase 43 new aircraft from Airbus Industries. Among private carriers, Jet Airways has plans to procure aircraft worth $3.2 billion from Airbus and Boeing and IndiGo has ordered 100 A-320 aircraft. Kingfisher and Air Deccan have also opted for the A-320 family while Spice Jet has placed orders for Boeing 737-800 aircraft.
Low-cost carriers (LCCs), including Air Deccan and Go Air are in the process of forming joint ventures with foreign firms to set up maintenance, repair and overhaul (MRO) facilities in India. Currently, these carriers have to either fly their aircraft to Abu Dhabi, Singapore or Belgium for secondary services. The demand for MRO is expected to increase further as many of the Indian airline companies plan fleet expansion.
India’s economic reforms created significant opportunities for private jet companies such as Kingfisher and Jet Airways to start their operations. Jet Airways was established on 3 May 1991 with a fleet of four Boeing 737-300 aircraft, with 24 daily flights serving 12 destinations. Today, Jet Airways is the largest airlines in the country operating 101 aircraft together with JetLite (formerly Sahara) its low cost airline. Other major airlines include Deccan Air which started operations in 2003 has since been acquired by Kingfisher Airlines, a premium airline operator that started its operations in the year 2005. The Deccan Air and Kingfisher combine has a fleet size of 84 aircraft.
Contents
[hide]
1 Metrics
2 Industry Players
3 Buyers of Services
4 Market Entry
5 Market Issues
6 Sources
7 Related ResearchWikis
Metrics
The engine overhaul market comprises the largest segment in Indian MRO segment worth $174 million and is expected to grow to $490 million 2014. The state owned airlines have developed capabilities for engine maintenance and the private airlines routinely source their needs from independent MROs. In India, 80% of airframe maintenance is done in-house by the airlines themselves.
OEMs have also developed a significant market share in the component overhaul market in India. The market size of the component overhaul market was $120 million in 2007 and is expected to grow to $204 million by 2014. Modifications is another smaller market in terms of size. The 2007 market was worth $43 million and is expected to be $77.5 Million by 2014.
The percentage of the maintenance market is: Engines – 40 percent; Modifications – 7.3 percent; Airframe (Heavy) – 12 percent; Components – 20 percent; and Line maintenance – 17 percent.
Industry Players
While leasing is a popular mode for aircraft acquisition world-wide, in India many new airlines have opted for acquisition through purchase. This model puts the onus of maintenance on the airlines themselves. So, the airlines are required to enter into comprehensive maintenance contracts. The following chart shows the maintenance relationships established by various airlines.
Buyers of Services
All the major Indian airlines are the prospective buyers (Air India, Indian, Jet Airways, Kingfisher Airlines, Go Air, IndiGo Airways, Paramount, etc.) In addition to these airlines the non-scheduled airlines - chartered airlines operators and corporate-owned aircrafts – would be the purchasers of the MRO services.
Market Entry
Currently, both existing and emerging Indian MROs have developed threshold competencies that satisfy both end-user needs and regulatory requirements. However, the entry of newer participants in this high growth market is likely to lead to increased competition and compel them to proactively invest in expanding their competencies even further. In particular, emerging MROs need to work innovatively in both providing services and creating competitive pricing strategies. Developing a total solution portfolio is a key success factor.
MROs that are able to offer a comprehensive portfolio of service products can suitably position themselves as long-term strategic partners to the operators adopting the favored outsourcing strategy.
Market Issues
Indian tariffs are still among the highest in the world. These are been reduced year on year to conform with WTO regulations. Presently all the products for this sector can be freely imported into India. The importation of aircraft parts/components is subject to custom duties. There are no restrictions on the import of aircraft parts/components into India. The components of the total import duty include a basic duty (applied on the cost insurance freight (CIF) value of goods); additional duty (popularly called countervailing duty), which is equivalent to the excise duty on similar articles manufactured within the country; a special additional customs duty; and an educational cess of 3 percent.
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