AIRSHOW-Raytheon to roll out new India air-traffic system this year

Fri Feb 8, 2013 6:38pm IST

Related Topics

Stocks

   

* GAGAN system could cut fuel costs 20 pct - executive

* Indian carriers struggling under huge fuel costs

By Anurag Kotoky

BANGALORE, Feb 8 (Reuters) - U.S. group Raytheon will roll out a new satellite-based aircraft navigation system in India this year, a move that could save airlines up to 20 percent in fuel costs.

"To get 20 percent on fuel burn is an enormous opportunity for airlines. It makes or breaks their business model," William Blair, president Raytheon Asia, told Reuters on Friday.

High fuel costs and taxes have battered India's airline industry in recent years, with carriers in what was seen as one of the world's most promising aviation growth markets struggling to turn a profit and running up large debts.

India contracted the U.S. defence and aerospace company in 2009 to build an air traffic control system allowing point-to-point flights instead of aircraft having to fly close to land-based control towers.

A 20 percent fuel saving is the amount U.S. planemaker Boeing says its $200 million Dreamliner jets provide compared to equivalent aircraft.

"There is a business model and a business value for the airlines, and also for civil aviation and Airports Authority of India," Blair said in an interview at an airshow.

The system, named GAGAN, uses three satellites and will be the first to run on Raytheon's new algorithm for equatorial regions. Blair would not give details of its cost.

India permitted airlines to import jet fuel directly last year to ease their costs by allowing them to avoid buying fuel from oil marketing companies.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage