VZCZCXYZ0001
RR RUEHWEB

DE RUEHNE #5275/01 3451210
ZNR UUUUU ZZH
R 111210Z DEC 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 9653

UNCLAS NEW DELHI 005275 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/M. NICKSON-D/KGAINES/JAY HATFIELD 
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL 
USDOC FOR 4530/MAC/ANESA/OSA 
ICE HQ FOR STRATEGIC INVESTIGATIONS 
STATE FOR EB/ESP 
 
E.O. 12958: N/A 
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: INDIAN AIRLINES 
LTD., NEW DELHI, LICENSE NO. D361205 
 
REF: USDOC 07495 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. On November 19, 2007, Export Control Officer (ECO) Paul Cushman 
and BIS FSN Prem Narayan conducted a Post-shipment Verification 
(PSV) at Indian Airlines Ltd. (IA), New Delhi.  Previously, in 
November 2005, BIS New Delhi conducted a favorable PSV at IA for 
export license D328264. 
 
¶3. BIS requested a PSV at IA, a public sector company (PSU) under 
the Ministry of Civil Aviation, GOI.  IA was listed as the ultimate 
consignee for two main power supply assemblies, both bearing serial 
number 2287 (ECCN: 7A103) and two gyro spare kits bearing serial 
numbers 090908A03 and 0540CA864 (ECCN: 7A002).  The license 
applicant was Honeywell International Inc. (Honeywell), Phoenix, 
Arizona. 
 
¶4. ECO and FSN Narayan met with K.A. Vasudevan (Vasudevan), Chief 
Manager (Engineering), R.K. Sharma (Sharma), Line Engineer and 
Sukumar Chandra Sardar (ATEC Shop), IA.  Randhir Jaiswal (Jaiswal), 
Deputy Secretary (AMS), Ministry of External Affairs (MEA), 
facilitated the meeting.  Jaiswal was also present at the meeting. 
 
¶5. The meeting began in Vasudevan's office and then moved to the IA 
Testing Workshop where all Honeywell Air Data Inertial Reference 
Units (ADIRU) are tested.  Sharma stated that prior to installing an 
ADIRU in an aircraft, it must be thoroughly tested.  He stated that 
along with other components, a power supply and a gyro are 
integrated into an ADIRU.  The ADIRU uses processors that receive 
input from gyros and accelerometers to provide altitude data to the 
pilot.  IA officials stated that they have 156 ADIRU units, most of 
which are installed in their fleet of AIRBUS A320 aircraft (three 
per aircraft).  The remaining fifteen serve as spares. 
Malfunctioning ADIRUs are either repaired in-house or sent to 
Honeywell repair facilities in Singapore or the United States. 
 
¶6. Reftel listed serial numbers for the two gyro kits as 090908A03 
and 0540CA865.  Sharma stated that serial number 090908A03 is 
incorrect and should be reflected as 0532CA213.  Sharma stated that 
the other serial number, 0540CA865, is correct.  To support his 
contention, he produced a chain of documents including the IA 
Provisional Discrepancy Report Cum Purchase Order Change Notice 
reflecting the serial numbers as 0532CA213 and 0540CA865 with the 
Honeywell Invoice number as 10782863.  This invoice number is 
reflected on all IA documents pertaining to the gyro kits shipment. 
In addition, he produced the IA Goods Receipt and Acceptance Note 
which also confirmed the serial numbers mentioned above.  This 
invoice number matched the invoice submitted by Honeywell to 
BIS/OEA.  Lastly, Sharma provided copies of the Component Inspection 
Record, a computer-generated chronology confirming the locations of 
both gyros, IA Purchase Order and Honeywell Proforma Invoice. 
Honeywell provided the BIS export license conditions to IA on the 
Proforma Invoice. 
 
¶7. Sharma stated that neither gyro kit was available for BIS 
inspection as both had been integrated into ADIRU units currently 
installed on operational aircraft. 
 
¶8. Regarding the two Honeywell power supply assemblies, reftel 
provided the same serial number (2287) for both.  Sharma pointed out 
that two power supply assemblies could not have the same serial 
number.  He asserted that the serial numbers for these power supply 
assemblies are 2287 and 2289 respectively.  A careful review of the 
Honeywell documentation submitted by BIS/OEA confirmed that the 
serial numbers are, in fact, 2287 and 2289.  IA officials again 
provided substantial supporting documentation including IA Component 
Inspection Record and a computer-generated chronology.  The 
chronology confirmed the location of one power supply assembly 
(2287) installed on an operational aircraft.  However, information 
about the location of the other power supply assembly was missing. 
IA officials later informed BIS by email (via MEA) that the second 
power supply assembly (2289) had been transferred from IA Delhi to 
an IA warehouse in Hyderabad on October 9, 2007. 
 
¶9. IA, established in 1953, is a GOI-owned national carrier for 
domestic travel.  IA, together with its subsidiary, Alliance Air, 
has a fleet of 67 aircraft including 4 wide-body Airbus A-300s, 47 
Airbus A-320s, 11 Boeing 737s, 2 Dornier D-228s and 4 ATR-42s.  IA 
is the largest domestic airline in India serving 58 destinations. 
Approximately 7.5 million passengers travel on IA annually.  IA 
employs approximately 19,300 personnel including 1,300 at Alliance 
Air, an airline servicing the Northeastern part of India.  IA is 
currently being merged with Air India, the GOI-owned international 
 
carrier. 
 
¶10. Recommendation: Based on the interview of the above-mentioned 
Indian Airlines officials and a careful review of the supporting 
documents they provided, it appears that Indian Airlines is in 
possession of all items on check.  Physical verification was not 
possible as three of the items on check were installed on 
operational aircraft and the remaining item had been transferred to 
IA's Hyderabad warehouse.  Therefore, due to the lack of a physical 
inspection of these items, this Post-Shipment Verification for 
Indian Airlines remains inconclusive. 
MULFORD