Transcript Strategic Planning - global american technology alliances blog

U.S. India Business Forum 2009
U.S. India Chamber of Commerce - Midwest
Aviation Panel
Chicago, Illinois
June 25, 2009
© 2009 Vedder Price P.C.
Setting the Stage - Who We Are





Savio Dias, Kingfisher Airlines, Asst. Sales Manager-Midwest USA &
Canada
Sami Khaja, Jet Airways, Sales Manager, Midwest and Texas
Raj Sidhu, American Airlines, Sales Manager, US-India/Russia
Sanjay Tiwari, KLM Cargo, Manager, US Sales & Customer Service
Douglas Ochs Adler, Vedder Price P.C., Moderator
© 2009 Vedder Price P.C.
2
Setting the Stage - Blue Skies (1)






Current State of US-India Relations (India 3.0)
India’s GDP has tripled since 2000; 7%+ est. for 2009-2010
US Exports to India and FDI have doubled in five years
 2004-2007: India imported >$11bn aviation goods from US
 GE India just received “Validated End-User” authorization
Since January: Infra. Development of US$13.59bn
Stock Market Rose 17% on May 18
Savings Rate of 37%
© 2009 Vedder Price P.C.
3
Setting the Stage - Blue Skies (2)


Open Skies (2005)
India’s 11th Five Year Economic Plan (2007-2012) ($600bn)





Airports ($9bn), Highways ($78bn), Power ($150bn), Rail ($62bn),
Seaports ($18bn), Telcom ($65bn) and Water ($100bn)
All sectors intertwined
Projects will go through: only 22% India GDP related to exports vs.
65% for PRC
Aviation Cooperation Program (2007)
Indo-US Aviation Summit (December, 2009)
© 2009 Vedder Price P.C.
4
Storm Clouds
(but not thunder and lightning)


Price of Oil
 Doubled between January and May
IATA
 Projected losses of $9bn for airlines globally
 India’s airlines account for 35% of losses but only 2% of capacity
© 2009 Vedder Price P.C.
5
A View From the Front Lines:
S.W.O.T. Analysis and Discussion
 Strengths
 Weaknesses
 Opportunities
 Threats
© 2009 Vedder Price P.C.
6
(Not so) Primary Colors (1)


Green Lights
 FDI and Tax incentives
 Waiver of import duties on some capital equipment
 US Ex-Im Bank Infrastructure Facility ($2.4bn committed)
Yellow Lights
 FY 2008-2009: Nat’l Highways Authority received bids for only
22 of 60 projects
 Minister Patel: no more airport PPP’s
 Nuclear power: end-use monitoring and disposal issues
© 2009 Vedder Price P.C.
7
(Not so) Primary Colors (2)

Red Lights
 High Courts of Bombay and Bangalore rulings (operators =
instrumentalities of state)
 Delhi and Mumbai airports named to IATA “Hall of Shame”
 Raised fees 207%!
 FCPA and other corruption concerns
India scored 3.4 out of 10 (0 = most corrupt and 10 = most
honest)
 Uneven (unequal?) application of laws and regulations
© 2009 Vedder Price P.C.
8
Recommendations




KYC and KYP
 States are easier to deal with
 Beware Satyma/Maytas situations, esp. w/land permits
Include Focus on Infrastructure Utilization
 ATC: reducing 1 minute off ea. of India’s 2mm domestic flights =
200K ton decrease in CO2 and savings of $67mm
Relaxation of ECB Policy: Gov’t fixated on Dabhol
Transparency: Cape Town Treaty ratified but never implemented
© 2009 Vedder Price P.C.
9
Thank You!
For further information, please contact:
Douglas Ochs Adler
Vedder Price P.C.
875 15th Street, NW, Suite 725
Washington, DC 20005
T: +1-202-312-3325
F: +1-202-312-3322
[email protected]
www.vedderprice.com
© 2009 Vedder Price P.C.
10