The Hindu : Business : Aerospace industry looks to Asia Pacific

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Saturday, Sep 13, 2008
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Aerospace industry looks to Asia Pacific

Shanthi Kannan

Satyam focuses on aerospace defence
Industry needs skilled workforce

John W Douglass

CHENNAI: Shedding its U.S.-centric approach, the aerospace industry is slowly turning its focus on the Asia-Pacific region, which is emerging as fulcrum for hardware, software and component development in this space.

Indicating this shift in approach, Jonh W. Douglass, President and Chief Executive Officer, Douglass Aerospace Group, told this correspondent in an exclusive interview that the aviation workforce in the U.S. and Europe were getting old. Aviation was no longer attractive for young in these countries and in military services, sources of fully qualified personnel were being downsized and maintenance privatised.

Mr. Douglass was of the view that Indian and Chinese aviation industry was growing and aircraft manufacturing giants were keen on setting up shops in these countries.

At present, India Inc. accounts for less than one per cent of the total $60 billion market as compared to 12 per cent of the overall offshore engineering services space.

Cost advantage

At present, the industry needed skilled workforce, large pipeline of OEMs (original equipment manufacturers) and MROs (maintenance, repair and overhaul), inventory obsolescence management, R&D and offset liabilities.

International industrial houses are keen to come to India to take advantage of availability of skill base, technology base and cost advantage, he said.

Mr. Douglass, who was formerly the President and Chief Executive Officer of Aerospace Industries Association of America, said the U.S. alone needed 10,000 aviation technicians each year and only 4,000 students were getting enrolled. However, the situation in India was different as it had young population with required skill sets to meet the demands of this industry. Similarly, the U.S. was willing to bring in non-American companies in this segment.

Mr. Douglass, who had been recently inducted on the board of Satyam Computer Services, said he would be providing his expertise to the company. He said Satyam was actively involving in the aerospace and defence practice vertical.

The Global Head for Aerospace and Defence Practice of Satyam, Pinaki Dasgupta, said his company was focusing on defence and aerospace defence heavily. There were growth opportunities in this segment and the company was the first member of the Aerospace Industry Association of America. It had clients from various segments such as regional jet manufacturers, commercial jet aviation OEMs, defence contractors and others.

Mr. Dasgupta said about 40 per cent of the total aerospace revenue came from engineering services and structural services, another 40 per cent from MRO and ERP and the balance from managing portals. He said the growing demand in this industry, aerospace vertical would also gain importance. The company in the last three years had invested over $10 million in this vertical and hoped to invest more in the coming years, he added.

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