cruising heights

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2CONTENTS

2 I CRUISING HEIGHTS I MARCH 2012

FACING THE CHALLENGES HEAD-ONINDIAN AVIATION CONTINUES TO GO THROUGH A UP-AND-DOWN RIDE. EVEN BEFORE THEINDUSTRY FORGOT THE DOWNTURN, CAME THE KNOCKOUT BLOWS: HIGH FUEL PRICES, HIGHERAIRPORT FEES AND MORE. TO TOP IT ALL, MOST AIRLINES ARE IN THE RED. THE GOVERNMENTHOWEVER HAS TAKEN A SERIES OF INITIATIVES TO HELP THE INDUSTRY RECOVER.16

MINISTERSPEAK6

INDIAN AVIATION

14POLICIES ANDMORECIVIL AVIATION MINISTER’SVIEWS ON THE INDIAN AVIATION SCENARIO.

IATA VIEW30 NEEDED:

COOPERATIONTONY TYLER SUGGESTS COOPERATION FOR INDUSTRY’S REVIVAL

NEW MOVESDR NASIM ZAIDI ON POLICIES TO WEATHER THE STORM

CHAIRMANSPEAK35 AAI: FLYING

HIGHV P AGRAWAL ON AAI’SINITIATIVES TO FACILITATE FLYERS AND CARGO

inside ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGSPROFILES NEWS DIGEST

SECRETARYSPEAK

HC T

IWAR

I HC TIWARI

HC T

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OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2CONTENTS


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Editor-in-ChiefK SRINIVASAN

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Editorial && MMarketing ooffice:Newsline Publications Pvt. Ltd., D-11 Basement, Nizamuddin (East), New Delhi -110 013 Tel: +91-11-41033381-82All information in CRUISING HEIGHTS isderived from sources we consider reliable.It is passed on to our readers without anyresponsibility on our part. Opinions/viewsexpressed by third parties in abstract or ininterviews are not necessarily shared by us.Material appearing in the magazine cannotbe reproduced in whole or in part(s) without prior permission. The publisherassumes no responsibility for material lostor damaged in transit. The publisherreserves the right to refuse, withdraw orotherwise deal with all advertisements without explanation. All advertisementsmust comply with the IndianAdvertisements Code. The publisher willnot be liable for any loss caused by anydelay in publication, error or failure ofadvertisement to appear. Owned and published by K Srinivasan 4C Pocket-IV,Mayur Vihar Phase- I, Delhi-91 and printedby him at Nutech Photolithographers, B-240, Okhla Industrial Area, Phase- I, New Delhi-110020.

CRUISING HEIGHTSVolume VI No 11

CRUISING HEIGHTSwww.cruisingheights.in I March 2012 I `90

CIVIL AVIATION MINISTER AJIT SINGH ON HIS MINISTRY’S TOP PRIORITIES

Mounting losses and risingoperation costs have virtuallycrippled Indian aviation andapart from a helpful government,the saving grace is passengergrowth. Can the sector look tomake a fresh start?

Plus: �Wooing passengers,airport style

� From Dakotas toDreamliners

� Tony Tyler pushesfor cooperation

Aviation ministry infast forward modeEye to future growth,government sets timeline forputting infrastructure in place.

Ground Handling:No show yetThe GH policy has seen a see-saw battle between thegovernment and private carriers.

Farewell

to the

Jumbo

QueenPg 190

OUTLOOK 2012

COVER DESIGN: RUCHI SINHA

NUMBER OF PAGES IN THIS ISSUE:COVER+203

INFRASTRUCTURE FOR THE WORLDPRIVATELY-HELD AIRPORTS HAVE PROVEN TO FLYERS THAT INDIA MEANS WORLD-CLASS. LEAVING AIRPORTS LIKEDUBAI BEHIND, THESE AIRPORTS HAVE WON RANKINGS THAT THE COUNTRY CAN BE JUSTIFIABLY PROUD OF.

FUTURE PERFECT

Form IV (See Rule 8)CRUISING HEIGHTS

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Whether Citizen of India? : Yes(If foreigner, state the : Not Applicablecountry of origin) Address : 4C Pocket-IV, Mayur

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I, K. Srinivasan, hereby declare that the particulars given are true to thebest of my knowledge and belief.Date: 1st March, 2012 sd/-

K. Srinivasan Publisher

PATIENTEXPECTATIONA DETAILED LOOK AT THEMRO BUSINESS AND ITSFEASIBILITY IN INDIA

MANPOWEROBSTACLEFOCUS ON PREPARATION OF QUALIFIED AVIATION PERSONNEL

HIGH CARGOHOPESAIR CARGO STAKEHOLDERSLOOK AT INFRASTRUCTUREINITIATIVES WITH OPTIMISM

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INDI

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MARCH 2012 I CRUISING HEIGHTS I 5

EDITOR-IN-CHIEF’S NOTE

When the avia-tion fraternitygathered inH y d e r a b a d

two years back in 2010,the West had just got

into recession mode; there were darkclouds on the horizon, Indian aviationwas sputtering, Air India was on lifesupport and the general mood wasgloomy. Two years later, if anything haschanged, it’s for the worse, you can adda dash of doom to the gloom, one moreairline — Kingfisher — is now waitingfor someone to switch on the ventilatorand the rest of the industry is goingthrough its own convulsions and bal-ance sheet woes. The only exception,atleast in the sub-continent, is IndiGoand they must actually be worried at allthe envious looks coming their way!

Clearly, the airlines aren’t outsidethe Intensive Care Unit, because thegovernment was sleeping or didn’t pro-vide them good medical attention. Ifanything the policy tweaks and the fed-eral intervention in the aviation busi-ness in the last 10 years has been noth-ing but remarkable — completelyveered to providing better and betterregulatory mechanism for airlines andeven airports. India Aviation 2012 — thethird edition of the biggest CivilAviation show in the sub continent — isanother example of this pro-active atti-tude of the civil aviation sector to givethe industry a global fillip.

So, why it is that Indian aviationcontinues to flounder and go throughregular periodic seizures? There aremyriad reasons for this, but this mayperhaps, not be the occasion to debatethem. Maybe some other time. But itwould be fair to say that most of theissues do not require external interven-tion. If FDI has come in at a time whenIndian aviation is at its lowest ebb, it isbecause the airlines lobbied vigorouslyfor and against it in the halcyon days

when Jet was riding at `1500-plus andKingfisher too was in the high 80s.Similarly, their running battle with air-ports is the stuff of legends. They wantto self-handle, they want low charges,they want deferred payment terms andthey want world-class service. The airports, meanwhile, fight charges theywere exorbitant in their costs and Indiawill price itself out of the aviation busi-ness with these landing and parkingcharges. All these are issues that willsurely be discussed and debated atHyderabad when the fraternity gathersfor the air show. The irony is many ofthese were discussed and debated whenwe were all at Hyderabad two yearsback. All of them continue to be relevanteven today because the discourse didn’tproduce ay solutions or forward move-ment!

On our part we have put together acomprehensive package of pieces on lit-erally every spectrum of the industry.You have the pros and you have thecons and you will have enough materialto make a considered choice. The dangerof such an ambitious attempt is some-times one can package too much fact,figures and interesting material to chewupon. But my point is it is better topackage too much rather than too little.After all, that’s what a collector’s issue isall about.

We have had a great time puttingthis package together. We hope you willenjoy reading it.

India Aviation2012 — the third

edition of thebiggest Civil

Aviation show inthe sub

continent — isanother exampleof this pro-active

attitudeof the civil

aviation sectorto give theindustry a

global fillip

K Srinivasan

See, read, decide…

[email protected]

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2INTERVIEW

H C TIWARI

AJIT SINGH ON TACKLING PROBLEMS FACING THE INDIAN AVIATION SECTOR.

“There is a tremendousgrowth expected in thissector. It is growing at

a brisk rate...”

C ivil Aviation Minister Ajit Singh hasstepped into the portals of Rajiv GandhiBhavan at, perhaps, the most crucialmoment in the history of Indian avia-tion. He has to battle against heavy odds

— high fuel prices, a floundering Air India, highpassenger volumes and much more. He has airedhis views on all the problems that face the industryat different times to the media. Extracts from thoseinterviews:

ON BAILING OUT TROUBLED AIRLINESNo, government is not going to have anybailout. Government is not going to ask banksor private industry for that matter. However,we have taken three crucial steps to help theaviation sector. Firstly, we have allowed allairlines to directly import aviation fuel. Next,we are working on allowing FDI up to 49 percent in the aviation sector.

Thirdly, we have allocated traffic rights toprivate airlines on foreign routes. All thesemeasures should help airlines. The whole avi-ation sector is in crisis. The measures we havetaken will help airlines come up with freshbusiness plans to persuade banks to lend themmoney. Now it is up to the banks to see if thebusiness plans of the airlines are viable. Butwe are not going to bail them out.

ON AIR INDIAWe realised that Air India, in any case, was notable to utilise the allocated bilaterals, as it did-n’t have adequate aircraft. Even theDreamliners will take time to be here.Therefore, why should we let foreign carriersalone benefit? Private airlines can utilise thatcapacity as well. In any case, we stand to ben-efit when the airport facilities are utilised.

ON HELPING AIR INDIAGovernment is not in a position and will notbail out any private airlines. Air India is apublic sector unit, so government has an obli-gation. But Air India will have to become com-petitive and restructure its costs... as the gov-ernment cannot keep on pouring money

ON THE INDUSTRY AS A WHOLEThere are problems. Industry has grown sofast in past few years. There is shortage oftrainee pilots, of stewardesses... there arefinancial implications... But as far as questionof jeopardising the safety of passengers is con-cern, there is no such fear. There is no

compromise, DGCA will not compromise andthe Ministry will not compromise.

ON FDI IN AIRLINESThere is a tremendous growth expected in thissector. It is growing at a brisk rate but it isexpected to grow at this rate. This industryrequires a lot of capital and lot of expertise.Passenger-safety is involved, then the flightsthe ATC technology is changing and evolv-ing...considering that our current airlines areunder a lot of financial stress, although 26 per-cent FDI was allowed many years back, butnobody knew what was coming in because itis such a technical business not a run-of-the-mill business that anybody would invest thatthere is a general feeling that only the airlineswould be interested in the investment in that.With the growth that we are witnessing andexpecting there are so many dimensions to it.

Therefore, 26 per cent was mooted,although it has not gone to the Cabinet yet.But there are some problems with 26 per cent.According to SEBI guidelines, if somebodybuys 26 per cent from the investor, it has tomake an open offer. That was a problem. Sothe committee of secretaries met and recom-mended that 49 per cent be allowed. Let’sremember that control still remains in Indianhands. Any FDI would be vetted by the secu-rity committee, and FIPB considers all the fac-tors. It’s not as if it is an open field for any-body.

ON KINGFISHERYou can’t close down a company because it ismaking losses or banks are not giving itmoney. As long as passenger safety is not jeop-ardised, as long as it keep their schedule, whyshould we close down any industry?

ON SAFETYIn the airline industry, there are six to sevenplayers. Passengers’ safety is paramount. TheDGCA is conducting a special safety audit andits teams are working on this. The DGCA is alsolooking into the problems faced by the passen-gers. That’s our main concern.The government also has a responsibility to seethat the financial stress suffered by airlines doesnot affect safety and so the DGCA conductfinancial audits. If an airline has five planes andadequate equity base, that’s fine for us.

As long as safety norms are being met,there is no question of cancellation oflicences.

INTERVIEW

Industry hasgrown so

fast in past fewyears. There is

shortage of trainee pilots, of

stewardesses...


“Air India’s Dreamliners will take time to be here.Therefore, why should we let foreign carriers alone benefit? Private airlines can utilise that capacity.”Ajit Singh, Civil Aviation Minister

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2MINISTRY

A irports all across India had a spe-cial glow on February 18, 2011. Onthat landmark day, tasteful illu-mination marked the completionof 100 years of Indian civil avia-

tion. The day also marked the commence-ment of Civil Aviation Centenary Year.

It all began on February 18, 1911, whenFrench pilot Monseigneur Henry Piquetflew a Humber biplane from Allahabad toNaini, just across the Yamuna River, andback, covering a distance of about 10 km.

He carried nearly 6,000 letters, many ofwhich were addressed to King George V ofEngland with ‘First Aerial Post’ as the post-mark. This was also considered to be theworld’s first airmail service.

A year later, in 1912, the first domesticair route between Karachi and Delhibecame operational. The service betweenthe two cities was operated by the IndianState Air Services with the ImperialAirways (a UK-based airline).

In 1915, to expand the horizons of theaviation industry, Tata Sons Limited start-ed regular airmail services betweenKarachi and Madras (now Chennai). It alsofounded Tata Airlines, which was rechris-tened Tata Air Services in 1938 and thenTata Air Lines, the same year.


AAI

ON WINGS FOR 100 YEARS AS WE PULL DOWN THE CURTAIN ON THECELEBRATIONS OF HUNDRED YEARS OF AVIA-TION, WE CANNOT BUT LOOK WITH PRIDE ONWHAT INDIA HAS ACCOMPLISHED. OVER THEYEAR, THE MINISTRY OF CIVIL AVIATION ANDOTHER AVIATION STAKEHOLDERS MARKEDTHE EVENT AND A GRATEFUL NATIONREMEMBERED ALL THOSE STALWARTS WHOHAD CONTRIBUTED TO MAKING THEINDUSTRY WHAT IT IS TODAY.


MINISTRY

On October 15, 1932, JRDTata flew a single-engine air-craft from Karachi’s DrighRoad Aerodrome toBombay’s Juhu Airstrip viaAhmedabad.

The aircraft continued toMadras via Bellary, flown byformer Royal Air Force pilotNevill Vincent. Tata AirLines had not, however, sur-vive for too long after theend of World War II.

On July 29, 1946, itbecame a public limitedcompany called Air Indiaand the government acquired 49 per centstake in it, making it the country’s designatedflag carrier. Air India operated its first inter-national flight on June 8, 1948, from Bombayto London.

Speaking during the inaugural of theCentenary Celebrations of Civil Aviation inIndia, the then Civil Aviation Minister VayalarRavi said: “Today, India is considered to beone of the safest countries in terms of civil avi-ation. Recently, the Federal AviationAdministration (FAA) of America even citedIndia as a role model in the Asia-Pacificregion.”

In order to retain this position and toassure all travellers the guarantee of safety,the Minister said: “It would be necessary toredefine the parameters of regulation. We are

already looking into this matter and consider-ing to restructure the DGCA into a more com-prehensive system, which works well aboveinternational standards.”

“One of the biggest challenges before uswas to lend renewed vibrancy to public sectorundertakings like Air India and AirportsAuthority of India.” he added.

Ravi also paid tributes to the pioneer ofIndian aviation: JRD Tata, who obtained thefirst pilot’s licence issued in India and alsofounded the first commercial airline, whichlater became Air India.

Tata also launched India’s first internation-al carrier — Air India international and laterwhen the government took over, he wasappointed the Chairman of Air India in 1953,a position which he held for 25 years.

CELEBRATING CENTE-NARY: Snapshots fromthe function of the cele-brations.

H C

TIW

ARI

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2


MINISTRY HIGHLIGHTS

New York<

<<

ALTALatin American and CaribbeanAir Transport Association(ALTA):The EU-ETS will be detrimental to the

growth of aviation in Latin America and

will set the industry back several years,

during a time of unsteady economic per-

formance. ALTA is a strong supporter of a

global approach to the reduction of car-

bon emissions through proactive steps,

such as the use of new technologies,

fleet renewal, the improvement of opera-

tional processes, effective investment in

infrastructure and the development of

biofuels.

ATA

Air Transport Association ofAmerica (ATA):It is clear that the rest of the world is

standing up against the EU’s unilateral

and counterproductive scheme and we

are hopeful that the EU will stand down.

The EU-ETS regime will

hamper the flights from

Asia to Europe. Air AsiaX,

which has decided to

stop flights to Paris and

London from April has

set the trend...

SanFrancisco

PRO-ACTIVEMINISTRYIt has been a see saw year (2011-12) for Indian aviation. It wasthe year of the centenary of aviation in India — a 100 remark-able years of flying! It was also the year when two importantinstitutions — Pawan Hans Helicopter Ltd and Indira GandhiRashtriya Udan Academy — celebrated their silver jubilees.

It was also the year when the Directorate General of CivilAviation (DGCA) moved decisively to completely overhaul theregulatory mechanism that governs Indian aviation; it wasalso the year when Indian airports won global recognitionfrom delegates across the world when they were here in Indiato participate in two major events in Delhi (ACI Asia-Pacific)and Mumbai (ICAN).

It was also the year when aviation per se was in an yo-yomood and the Department of Civil Aviation acted with imagi-nation and enterprise to provide the necessary backing andsupport for the country’s growing airlines to face the uncer-tainty of global oil prices, the meltdown in the West and thedifficult situation at home.

Here are a few glimpses at the achievements that theMinistry accomplished through the year.

The civil aviation ministry has recommended securitychecks by the Home Ministry and clearance by the ForeignInvestment Promotion Board as the critical modalities forallowing foreign airlines to take up to 49 per cent stake inIndian carriers. The government is working on a policy package to help theentire cash-strapped industry come out of the financialrut. The information sought by the ministry relates to theiroverall financial situation, the extent of debt with financialinstitutions and their working capital requirements.The Ministry initiated steps to allow direct import of AirTurbine Fuel (ATF) by Indian carriers. ATF prices in the coun-try are 30 to 40 per cent more than the prices in the inter-national market due to high base price and higher taxes. Thesales tax on ATF in different States in India is on much high-er side, and varies between four to 30 per cent in differentstates. The Minister of Civil Aviation had also written to all ChiefMinisters of the states to bring down the rate of sales tax onATF in order to make ATF cheaper for the Indian carriers. The Civil Aviation Ministry has also started working to formulatea new civil aviation policy to cater to the latest concerns of theaviation industry, especially issues relating to its sustainabilitylike jet fuel pricing, infrastructure, airfare pricing, safety andsecurity.

MINISTRY HIGHLIGHTS

Delhi

London

Munich

BengaluruHyderabad

Mumbai

<<

<

<<<<Milan

EUROPEAN AIRLINES

Association of EuropeanAirlines (AEA):Europe is right to demand concrete

action and deliverable environmental

results, but its approach lacks essential

international buy-in. Non-European

countries are also right to call for a global

approach, but they need to back up their

words with concrete actions which gen-

uinely deliver for the environment. The

debate is about how long it will take to

deliver a global approach. AEA urges

political leaders to seize the negative

energy around the ETS and turn it into

urgent, positive action towards a global

solution.

ARAB AIR

<<

Frankfurt

India had taken the lead in hosting aconference of several countries lastSeptember in which a declarationwas unanimously adopted tooppose the EU move. At that meet-

ing, India and 26 other countries passeda strong resolution urging the EuropeanUnion to desist from imposing the taxfrom January 2012. ICAO also backedthe India lead offensive against the taxand suggested that the EU must debatethe issue and allow ICAO to take thelead on such issues. More recently, theIndian government has asked the coun-try’s airlines to refrain from submittingcarbon emissions data to the EU. “I amdirected to say that the ministry hasdecided that there is no need for Indiancarriers to submit any data to EuropeanUnion under EU-ETS,” the civil aviationministry said in a letter on November25, 2011, to all the domestic airlines thatfly on international routes. Any corre-spondence received at your end (air-lines) from the EU in this regard may beforwarded to this ministry, for takingnecessary action,” the letter added.

Representatives of Armenia,Argentina, Republic of Belarus, Brazil,Cameroon, Chile, China, Cuba,Guatemala, India, Japan, Republic ofKorea, Mexico, Nigeria, Paraguay,Russian Federation, Saudi Arabia,Seychelles, Singapore, South Africa,Thailand, Uganda and United States ofAmerica, gathered in Moscow, onFebruary 21 and 22, 2012, and adopted ajoint declaration which starts by sayingthat the “inclusion of international civilaviation in the EU-ETS leads to seriousmarket distortions and unfair competi-tion”.

India and 22 other countries, includ-ing Russia, China and the US, decidedto retaliate with a series of measureswhich would impose heavy costs onEuropean airlines and plane manufac-turers.

The joint declaration at Moscowasked the EU and its member states thatthey “must cease application of theDirective 2008/101/EC to airlines/aircraftoperators registered in third states”.

EU-ETS will ensure that

ticket prices go up by

two-three per cent.

IMPACTFOR INDUSTRY

Arab Air Carriers Organisation(AACO):Unilateral and regional environmental

initiatives, which ignore the boundaries

of their jurisdiction, such as the European

Emission Trading Scheme, will not suc-

ceed in resolving the environmental

issue. To give Arab airlines more power to

fight the EU-ETS, AACO is calling on the

Arab Civil Aviation Commission to form

an Arab position regarding the illegiti-

macy of applying the European Union

scheme on non-EU airlines.

* The map is not to scale.

LEADING THECHARGE AGAINST

EU-ETS

ASIA PACIFICAssociation of Asia Pacific Airlines (AAPA):Members passed a resolution which “calls on the EU to

scrap plans to include foreign airlines within the EU-ETS,

rethink its position and re-engage with the international

community. AAPA also strongly urges governments to

work within the auspices of ICAO towards an effective

multilateral agreement on a global, sectoral framework on

aviation and the environment, and to refrain from intro-

ducing duplicative measures, including the imposition of

arbitrary taxes that deliver no real environmental benefit”.

GRAP

HIC:

RUC

HI S

INHA


OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2MINISTRY HIGHLIGHTS

The country’s civil aviation sector has come along way — from 500 departures per weekin the country in 1994 before deregulation

to nearly 15,000 departures daily — and at theInternational Civil Aviation Network confer-ence in Mumbai recently, India set high bench-marks that will be difficult to replicate. Otherthan the hospitality to the guests, the week-longmeet inaugurated by none other than thePresident of India brought in more than 300 del-egates from 68 countries who held negotiationsfor bilateral air services agreements.

For guests from across the globe, ICAN 2011carried a special meaning. They were at theiconic Taj Mahal Palace in Mumbai that was somuch in the news two years back for all thewrong reasons. The iconic hotel had literallybeen rebuilt from scratch and they were allgathered now to expand traffic and help coun-tries fly to each other’s cities more frequentlyand more efficiently. By common consent it wasagreed that the fourth edition of the annualweek-long International Civil AviationNetwork (ICAN) was by far the best and themost comprehensive of these events. The con-ference, (organised by the Ministry of CivilAviation) held under the aegis of Montreal-based UN body, the International Civil AviationOrganisation (ICAO) provides a platform foraviation negotiators from different countries toconduct bilateral air services negotiations.“India has raised the bar so high that hosts willnow find it tough to match these standards,”said one participant. It was almost flawless inexecution: day-long meetings, plenty of enter-tainment and a side trip to Agra. No surpriseconsidering that Civil Aviation Secretary DrNasim Zaidi has been one of India’s most suc-cessful representatives at ICAO.

President Pratibha Devisingh Patil whoinaugurated the meet was candid in her obser-vations: “Governments must continually nego-tiate new bilateral treaties, to allow for andexpand access to new and emerging markets fortheir carriers. ICAN provides a very convenientand essential platform, for a large number of

States to negotiate these bilateral agreementsquickly, efficiently and with saving of time andexpenditure. The World Air TransportConference 2003 paved the way for this efficientsystem of air services negotiations, and I com-pliment ICAO leadership for promoting ICANsuccessfully in partnership with host coun-tries.”

She also said: “In the 1990s, for example,there were very few domestic connectionsbetween the metro towns — Delhi, Mumbaiand others. There were long waiting lists forinternational flights particularly during thebusy seasons. Carriers were limited.Deregulation of the domestic sector and liberal-isation of bilateral traffic rights in the pastdecade has brought choices of carriers, choicesof timings and fares. There is a sea change from500 departures per week in the country in 1994before deregulation, to nearly 15,000 departuresdaily — a 30 times jump. Today, 87 foreign air-lines fly to and from India and five Indian carri-ers fly to and from 40 countries. In the lastdecade, domestic air traffic has quadrupledfrom 13 million to 52 million and internationaltraffic more than tripled to 38 million.”

More than 300 delegates from 68 countriesattended the week-long conference. For therecord, it may be mentioned that delegates from65 countries held negotiations with each other.India has bilateral air services agreements with108 countries, 72 foreign airlines are currentlyoperating to/from various destinations. ThreeIndian carriers are operating to 35 destinationsin 25 countries.


At theInternationalCivil Aviation

Networkconference in

Mumbairecently, India

set highbenchmarks that

will be difficultto replicate

INDIAN AVIATION TAKESCENTRESTAGE

A GIANT LEAP: President Pratibha Patil (third from left) at the inauguration of ICANconference in 2011.

MINISTRY HIGHLIGHTS Continued on Page 16


14I CRUISING HEIGHTS I MARCH 2012

Upbeat about the prospects of theaviation sector in the country, DrNasim Zaidi, Secretary, CivilAviation, is confident that thenumber of domestic passengers

will touch 160-180 million from 53 millionnow while international passengers will riseto more than 80 million from 38 million inthe next 10 years. Dr Zaidi never misses anopportunity to boost Indian aviation.Extracts from the speech he delivered at theNanyang Technological University,Singapore.

ON THE GROWTH OF CIVIL AVIATION India is the fastest growing aviation marketin the world, ninth highest and will beamongst first four-five in next 10 years.Recent estimates suggest that domestic airtraffic will touch 160-180 million passengersper annum in the next 10 years and interna-tional traffic will exceed 80 million passen-gers per annum from the current level of 53million domestic and 38 million interna-tional passengers. Projected CAGR(Compounded Annual Rate of Growth) forthe next 10 years is placed at 14 to 15 percent of passenger traffic and above 10 percent of cargo traffic. Such optimism stemsfrom independent studies that have con-cluded that India’s urban population will be590 million by 2030 i.e. 40 per cent of thetotal. And the number of million-plus citieswill increase to 68 from 35. Further, the mid-dle-class population is expected to growfrom 13 per cent in 2010 to 37 per cent in2025.

The growth of the civil aviation sector isclosely linked to the growth of GDP. In theemerging markets, air traffic is estimated togrow at about two times the rate of growthof real GDP. In India, we expect aviation togrow at 14-15 per cent range. While civil avi-ation is a substantial industry in its own, itskey contribution to the nation’s economy isin enabling other sectors to operate more

efficiently. Many of the growth sectors on which the

future of the economy depends are cruciallydependent on air transport for competingeffectively in the global economy. Byexpanding the size of the market that can beserved, aviation enlarges the scope toexploit economies of scale and enhancescompetition. Needless to say that it sup-ports tourism in a big way, promotes tradeand commerce and generates employment,both directly and indirectly through itsrelated industries.

The percentage growth figure may (be)striking. Let me, in a more simplistic man-ner, tell you the kind of changes that havetaken place and affected the lives of peoplefrom all walks of life both in India andabroad. In the 90s, there were very fewdomestic connections between Metrotowns: Delhi, Mumbai and others. On inter-national connectivity, the situation was alsonot so good particularly during the busyseason. Carriers were limited. If peoplewanted to travel to the West, they wouldtravel to Mumbai to go to the USA or the UKwith associated inconvenience. So, deregu-lation of the domestic sector in the 90s andliberalisation of bilateral traffic rights inthe past decade brought choices of carriers,choices of timing, fares and experiences.Today, for example, there are (over) 50 directflights between Delhi and Mumbai withcomplete freedom of carriers, timings andfares. In 1994, there were only seven flightsbetween these sectors. The same is true ofmany other towns in the country. There is asea change from 500 departures in the coun-try in 1994 before deregulation to nearly15,000 departures daily. The same phenome-non has occurred on the international side.

ON THE GLEAMING NEW AIRPORTSToday in India, about 60 per cent of the airtraffic is happening in the airports underthe PPP model at Delhi, Mumbai,

The privatesector played anunprecedentedrole during thelast 5-6 years by acting as a

key contributorfor the

development ofPPP airports

“DEVELOP INDIA AS A HUB FOR HIGH-QUALITY AVIATIONEDUCATION”DR NASIM ZAIDI, SECRETARY, CIVIL AVIATION, BELIEVES THAT THE COUNTRYCAN BE A CENTRE FOR HIGH QUALITY AVIATION EDUCATION.

Hyderabad and Bengaluru and the rest iswith the airports owned and operated byAirports Authority of India. During theperiod from 2005 to 2010, $10 billion hasbeen invested in airport development in thecountry. The private sector played anunprecedented role during the last five-sixyears by acting as a key contributor for thedevelopment of PPP airports.

A major achievement in the airport sec-tor in India during the last five years wasthe commissioning of Terminal 3 (T3) andassociated infrastructure at the Delhi inter-national airport in a record period of 37months. T3 has an annual throughput capac-ity of 34 million passengers and the entireDelhi airport project required an invest-ment of about $3 billion.

We are also looking at 35 other airportsin the country including state capitals,tourist centres, business and commercialcentres. In these airports, the cityside willinvite the private sector for commercialdevelopment including hotels, shoppingcomplexes, cargo, parking lots, food courts,etc. We invite investors to become partnersin this process. AAI has already investedabout $ 1 bn.

ON THE FUTUREWhile figures of growth registered in thepast decade sounds impressive, it is a matterof concern that only about 4 per cent peoplefly out of the total population of 120 millionwho travel. Large numbers of cities are stilldevoid of air connectivity. Global compari-son of air travel penetration shows thatIndia (at 0.04 air-trips per capita per annum)stands far behind developed countries likethe US and Australia ( two air-trips per capi-ta per annum). China’s domestic traffic isfive times the size of India’s despite havinga population just 10 per cent larger. There isa significant growth potential for the Indiancivil aviation industry as the economygrows, disposable incomes of people riseand the value of time becomes more pre-cious. Low ratio of per capita air-trips inIndia suggests a huge potential for air traf-fic growth considering the higher trajectoryof economic growth the country is witness-ing presently.

ON TRAINED MANPOWERClosely related to safety in civil aviation isskill augmentation in its entire dimension.Implementation of stringent standards tocope up with the growing air traffic is cru-cially dependent upon the ‘skills and com-petency’ of the workforce. A vibrant, worldclass education and training sector is, there-fore, essential to meet the rising demand for

skilled workforce at all levels. Even theindustry would need this class of workforcein increasing numbers to cater to the grow-ing demand. At the same time, I would alsoventure to say that this itself can prove to bean opportunity to develop India as a hub forhigh-quality aviation education and train-ing for the emerging markets across Asia,Middle-East and Africa.

ON ENVIRONMENTAL CHALLENGESConsidering the phenomenal growth in airtransport, improving the environmentalperformance of aviation is a challenge.Based on carbon emission data collectedfrom scheduled airlines in India, it is seenthat the carbon emission curve shows a flat-tening trend after 2008 due to fleet renewalprogrammes and optimisation of opera-tional procedures apart from the initiativestaken by the airlines to reduce their fuelexpenditure.

MINISTRY HIGHLIGHTS

Based on carbon emission

data collectedfrom scheduledairlines in India,

it is seen that thecarbon emission

curve shows aflattening trend

after 2008


HEMANT RAW

AT

FURSATGANJ TO GET AVIATIONUNIVERSITYThe Ministry of Civil Aviation has declared thata world class aviation university will come upin Fursatganj. This National AviationUniversity would be a hub for aviation-relateddisciplines. This was announced at a function tomark the 25th anniversary of Indira GandhiNational Aviation Academy (IGRUA), thecountry’s premier academy of pilot training.Secretary Nasim Zaidi, Union Civil AviationSecretary, told the media: “Yes, it has beendecided that the university would be built atFursatganj in UP and its campus will be close toIGRUA at Fursatganj airfield.”

TRIPOLI EXPRESSThe Ministry of Civil Aviation carried out withaplomb, the complex operation to airlift nearly

18,000 Indians stranded in Libya. It was a remarkable operation in more sensesthan one. For starters, the coordinationbetween the different wings of the governmenthad to be seen to be believed. There was theMEA (Ministry of External Affairs) and theMinistry of Civil Aviation that literally pulledout all stops to make sure that the flights gotinto Libya as scheduled. And at that point oftime, in a pleasant coincidence, the CivilAviation Minister was Vayalar Ravi who wasalso the Minister for Overseas Indians.

There were considerable complications inspite of all this. India does not have an ASA(Air Services Agreement) with Libya thatwould allow for bilateral movement of flightsbetween the two countries. So, the Indianembassy in Tripoli had to literally sweat it outon a day-to-day basis to obtain permission forour aircraft to get into Tripoli.

For the first time, the Ministry also had theprivate carriers operate to get our citizens backfrom Libya. Apart from Jet Airways, there wasIndiGo, SpiceJet and Kingfisher all mountingflights to Malta and Alexandria. The airlift wasthe perfect example of cooperation at every level.

AN INSTITUTE TOREMEMBER:Congress MP RahulGandhi lighting thelamp to mark the25th anniversary ofIndira GandhiNational AviationAcademy (IGRUA).

LIBYA

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C R U I S I N G H E I G H T S M A R C H 2 0 1 2MINISTRY HIGHLIGHTS



Also, a reflection that Air India, all said and doneis the work horse of the country. Tirelessly theyflew close to 200 sorties to Libya and days latergot into operational mode for Japan.

ACI: THE POWER OF AIRPORTS ANDINDIAThe ACI Conference in Delhi (April 5-8, 2011)saw a huge participation and appreciation ofIndia’s remarkable aviation and airport journey.

It was, perhaps, one of the best organisedand best conducted conferences in the aviationsector in recent times. The USP of the confer-ence was the range and depth of subjects dis-cussed, the attendance and the excitement atIndia, one of the hottest aviation destinations inthe world. As AAI Chairman VP Agrawal, whois on the Board of the Council, said: “For us itwas not just a question of being good hosts. Wewanted our colleagues from other parts of theworld to see the enormous strides undertakenby Indian Aviation and how we managed thisgrowth without much hiccups.”

During his opening address, Agrawal tolddelegates that India had to face the challengesof “phenomenal” traffic growth head-on, andbuild new airports and upgrade others to avoida future shortfall in capacity.

This was something that Civil AviationSecretary Dr Nasim Zaidi alluded to in his open-ing remarks at the inaguration.He explained thatdevelopment and growth was one thing, butmanaging it was the great big task. He spoke ofthe huge HR reservoir that would be required ifIndia has to move to the next level.

PILOTS’ EXAM GO ONLINE The government has started plugging loop-holes in the pilot examination and licensing.As a first step, the Airline Transport PilotLicence or ATPL exam (meant to certify com-manders) has gone online to remove any dis-crepancies in the earlier process which wasmanual. So, for the first time ever, DGCA willnow do extensive verification checks —askingthe foreign authority concerned — about theveracity of the applicant’s claims on flyingexperience, etc. before even beginning the

process of licence conversion.To check the quality of pilots coming after

getting their commercial pilot’s licences fromforeign shores, the government has decided tomake such pilots undergo skill tests in Indiabefore converting their licences so that theybecome eligible for flying with desi airlines. Theforeign licences will be checked with the issu-ing authority before converting the same. Therewill be increasing focus on technology to limithuman interface - and hence chances of usingcorrupt practices.

FROM DGCA TO CAAThe process of setting up an autonomous CivilAviation Authority to regulate all aviation safe-ty issues in India is in the final stages with acabinet note on it likely to be finalised soon.

The proposed CAA, which would haveadministrative and financial autonomy, is alsolikely to keep a tab on the entire range ofactivities — from proper provision of air traf-fic services and licensing to financial fitness ofairlines. It will ultimately replace the presentregulatory body, the DGCA. The CAA willregulate all aviation safety issues. It will haveadministrative and financial autonomy andwill keep a tab on the entire range of activi-ties: from proper provision of Air TrafficServices and licensing to financial fitness ofairlines.

The crucial aspect of the CAA will be theseparation of the accident investigation wingand the regulatory functions of the Authorityso that there is no internal clash within theproposed body. The DGCA, for instance, doessafety audits, grants licences and investigatesaircraft crashes. It is proposed to arm theCAA with more powers to address consumeraffairs as lack of such powers with the incum-bent DGCA had often emboldened the airlinesto charge sky-high fares. In line with thisthinking, the proposed CAA will also havepowers to appoint regional Ombudsmen toensure speedier action and settlement of cus-tomer or passenger disputes.

The note which has been prepared byDGCA and submitted to the parent Ministryof Civil Aviation has been shaped based on afeasibility study first made in October 2009 intechnical collaboration with ICAO. The man-date - if one can use that word — given thenwas to shape a new regulatory authority thatwill have improved financial and administra-tive autonomy for discharge of safety over-sight functions more effectively. The ICAOfeasibility report was received by the Ministryof Civil Aviation in March 2010 which waslater endorsed by the FAA stating it would bein line with the ICAO policy. The draft CAAnote — in the form of a Cabinet note — hasbeen prepared after studying the existingsetup in the UK, US, China, Germany, Franceand Singapore.


In line with thisthinking, the

proposed CAAwill also have

powers toappoint regionalOmbudsmen toensure speedier

action andsettlement ofcustomer orpassengerdisputes

MINISTRY HIGHLIGHTS

ACKNOWLEDGINGRECOGNITION: ACI Asia-Pacific PresidentSri Bashir Ahmed AbdulMajid presenting amemento to CivilAviation Secretary, Dr Nasim Zaidi.


FIRST-EVER AIRPORT DIRECTORSMEET The first-ever conference of Airport Directorswas organised in Delhi on June 16, 2011. TheCivil Aviation Secretary, Dr Nasim Zaidi, alsoasked the airport managers to reorient theirfunctioning to meet the new competitive chal-lenges. Maintaining that `1.35 lakh crorewould be required over the next decade for amassive upgrade and development of aviationinfrastructure across the country, he said bothgovernment and private investment would beneeded. “In future, there could be more thanone airport in some cities,” he said.

Therefore, the AAI and airport managerswould have to reorient their functioning tomeet this competition, he said. Noting that thecountry was projected to have 400 million airtravellers and over 1,000 aircraft in the next tenyears, Dr Zaidi said the AAI had earmarked`12,000 crore for the Eleventh Plan period tomodernise airports. The Secretary also stressedon the need to hike income from non-aeronau-tical revenues.

AAI Chairman V P Agrawal said airportmanagers in India would have to competewith the best in the world as the best airportswere situated in the Asia- Pacific region. Whilehuge investments would be made over thenext few years to improve and expand aviationinfrastructure, he said that the airport direc-tors would have to learn to market their air-ports to customers as was done the world over.

Agrawal also asked the AAI to deviseinnovative methods to maintain the plushnew terminals which have come up in variousstates in the recent past. The conference wasaimed to focus attention on the various issuesconfronting the AAI-run and managed air-ports across the country. “We are one teamand we believe it will help us to learn fromeach other’s experience, outline our best prac-tices and collectively find solutions to theissues that come up from to time,” said theAAI Chairman explaining his decision to holdthe conference.

INDIA-US TIE-UP FOR AVIATIONPRODUCTS The Federal Aviation Administration (FAA) hascompleted a bilateral agreement between theUnited States and India that will allow for thereciprocal certification of aviation products.Dorenda Baker, Director of the FAA’s AircraftCertification Service and Bharat Bhushan,Director General of the Directorate General ofCivil Aviation (DGCA) signed theImplementation Procedures for Airworthiness(IPA) in New Delhi during the third US-IndiaAviation Summit. These implementing proce-dures reflect the mutual commitment of theUnited States and India to enhance internation-al safety and will enable a more efficientexchange of aviation products.

The IPA details the scope and nature of thecooperation established in the framework setup in the US — India Bilateral Aviation SafetyAgreement (BASA) Executive Agreement.During the signing ceremony Dorenda Bakercongratulated the DGCA for demonstratingand sustaining a high level of competence as aregulatory agency. The agreement, said Baker,“will further strengthen our already successfulsafety partnership. The FAA appreciates India’slong standing commitment to improving avia-tion safety”.


FAA hascompleted a

bilateralagreement

between theUnited Statesand India that

will allow for thereciprocal

certification ofaviationproducts

MINISTRY HIGHLIGHTS

SHINING BEACONS: (L-R) Prime Minister Dr Manmohan Singh at the inauguration of the new `289 crore state-of-the-art internationalterminal building at Thiruvananthapuram Airport; The then Civil Aviation Minister Vayalar Ravi dedicating the `30 crore ShillongAirport’s new terminal building that was completed well before its scheduled date, to the nation; and, the formal inauguration of the`135 crore-Raja Bhoj Airport at Bhopal that saw among the dignitaries including the then Civil Aviation Minister Vayalar Ravi,Governor of Madhya Pradesh, Rameshwar Thakur, Chief Minister of Madhya Pradesh Shivraj Singh Chouhan, Union Minister for UrbanDevelopment Kamal Nath and Union Minister for Tribal Affairs, Kanti Lal Bhuria.

NEW START: FormerCivil Aviation MinisterVayalar Ravi whilelighting the lamp atfirst-ever AirportDirectors meet.

February 12, 2011 June 25, 2011 June 28, 2011


The report of the Working Group on Civil Aviation covers the followingaspects:

Role of air transport industry, thevision, review of performance during theEleventh Plan period — segment-wise aswell as organisation-wise.

Growth projection for the 12th FiveYear Plan including segment-wise invest-ment requirement and key enablers.

Key challenges highlighting air con-nectivity in North-Eastern region and otherremote areas, viability of the sector, fiscalregime governing Aviation Turbine Fuel(ATF), tax regime governing third partyMaintenance, Repair and Overhaul (MRO),safety, human resource development.

CHARTING AVIATION’S FUTURE GROWTHDETAILED BELOW IS THE REPORT OF THE WORKING GROUP ON CIVIL AVIATION FORTHE FORMULATION OF THE TWELFTH FIVE YEAR PLAN THAT HAS BEEN PREPARED ONTHE BASIS OF THE REPORTS OF FOUR SUB-GROUPS CONSTITUTED UNDER THEWORKING GROUP ON CIVIL AVIATION AND BASED ON OTHER FEEDBACK RECEIVEDFORM STAKEHOLDERS FROM TIME TO TIME. EXCERPTS:


INTO THE SKIES: AKingfisher aircraftflies into Mumbai air-port.

MIAL


Assessment of internal and extra budg-etary resources of the sector during 12th planperiod.

Projected 12th plan outlays of variousorganisations under Ministry of CivilAviation.

New initiatives in civil aviation sectorduring 12th plan period.

REVIEW OF PERFORMANCE Civil aviation industry by virtue of its dynam-ics is vulnerable to economic recessions, natu-ral disasters and political upheavals. TheIndian civil aviation industry managed toexhibit resilience to the recent global econom-ic slowdown. Both passenger and cargo traf-fic have shown robust growth and there hasbeen modernisation and augmentation ofcapacities, in a major way, at various metroand non-metro airports. Some of the keyachievements during the last five yearsinclude the following:

India has become the 9th largest civilaviation market in the world

Passenger handling capacity has risenthree-fold from 72 million (FY 06) to over 220million (FY 11)

Cargo handling capacity has risen from0.5 million MT (FY 06) to 3.3 million MT (FY11)

Connectivity to North Eastern regionhas risen from 87 flights per week to 286flights per week

Four international airport projects weresuccessfully completed through the publicprivate partnership (PPP) mode — greenfielddevelopment of Hyderabad and Bengaluruinternational airports and modernisation ofDelhi and Mumbai international airports

The Airport Economic RegulatoryAuthority (AERA) was established to safe-guard the interests of users and serviceproviders at Indian airports

As of now five Indian carriers are oper-ating on international routes

AIR TRAFFIC FORECAST FOR 12TH PLAN PERIOD Forecast of air traffic carried out for 12th planperiod suggests that domestic passengerthroughput would grow at an average annualrate of around 12 per cent. The domestic pas-senger throughput is expected to toucharound 209 million by FY-17 from 106 millionin FY-11. Similarly, international passengerthroughput is estimated to grow at an averageannual rate of 8 per cent during the 12th planperiod to reach 60 million passengers by FY-17 from 38 million in FY-11.

KEY CHALLENGES AND POLICYENABLERS Air connectivity in North-Eastern region andother remote areas, despite some degree ofsuccess of Route Dispersal Guidelines (RDG)in ensuring air connectivity to North-Easternregion, Jammu & Kashmir and other places, itis a fact that air connectivity has largely beenconfined to very few airports in these regions.The air connectivity is largely concentrated onroutes connecting state capitals. Air connec-tivity has not increased proportionately onroutes connecting Island airports.

Although all the scheduled domestic air-lines are complying with mandatory capacitydeployment requirements contained in RouteDispersal Guidelines, however, some parts ofthe country still remain unconnected by airservices or partly connected. The tendencyhas been that even in Category II andCategory III routes, airlines are said to preferto resort to cherry-picking or cream skimmingand adopt only those routes which are com-paratively more promising or lucrative whileleaving the unviable sectors unserved orunderserved. The RDG being a matter ofinternal cross-subsidisation between finan-cially viable and un-economical routes for air-lines, it does not appear to be sustainable tocontinue this in the long run given the natureand extent of remote and inaccessible areas inthe country to be covered and the financial


The AirportEconomic

RegulatoryAuthority (AERA)was established

to safeguard the interests

of usersand service providers at Indian airports

CONVENIENCE: Fliers sorting out their luggage at the baggage handling counter at one of the Indian airports.


crisis the airline industry is facing. There is a strong view emerging in this

sphere that in order to achieve the socialobjectives of providing air connectivity toremote and inaccessible areas, innovativemechanism needs to be evolved to achievemaximum impact. A sustainable and durablesolution in the long run could be found onlyin direct intervention.

Development of small low cost ‘no-frill’airports and regional airlines to be encour-aged through providing direct subsidies in atransparent manner both for airport operatorand for the carrier. Under these circum-stances, it is felt that there is a need to revisitthe Naresh Chandra Committee Report thatrecommended Essential Air Services Fund(EASF). A framework of analysis is requiredto be developed for deciding a set of parame-ters to evaluate proposals for locating airportsin the country.

VIABILITY OF THE SECTOR The future of India’s aviation growth is criti-cally linked to the health of the airline indus-try. While there are number of structural fac-tors that are responsible for this phenomenon,the operating cost environment the aviationsector in India faces many taxes on the inputsto production — fuel, aircraft leases, airportcharges, air passenger tickets, air navigationservice charges, maintenance costs, fuelthroughput fees, into-plane fuel fees, andother items subject to service taxes.

These fees and taxes on inputs are eithernot present in other matured aviation mar-kets, or are much lower there. The Indian airtransportation industry is thus laden withvery high costs and larger operating lossesthan their other counterparts globally. Therates of value added tax on Aviation TurbineFuel is high which affects the financial viabil-ity of their operations. In most of the statesVAT applicable on ATF is in the region of 25-30 per cent. Fuel cost alone constitutes nearly40 per cent of the operating cost of the airlines

in India. As per KPMG analysis, ATF prices in India

are nearly 60 per cent costlier than competinghubs like Dubai, Singapore and KualaLumpur which hurts India’s competitiveness.

(1) The ATF rules have since been amended to the status of “Declared Goods”

(2) FDI in aviation has since been hiked to 49 per cent.)

SAFETY With the advancement in aviation activities inIndia, challenges to keep the skies safe need tobe met appropriately. Safety is of paramountimportance. The expansion of air transport inIndia is among the fastest in the world. This isbeing reflected in the double digit growthrates of passengers and aircraft orders placedby Indian carriers. To meet this growth thereis an immediate need for improvement inexisting infrastructure.

As the number of operations increase, thecongestion in the skies may also pose a threatof near-misses and collision warnings. Theincrease in number of movements affects run-way safety, ramp safety, incursions and excur-sions, ramp congestion, precautionary land-ings, aborted take offs, and other serious situ-ations affecting safety. Proactive measures areneeded to avoid hazardous situations by hav-ing institutionalised mechanisms in place toensure a high degree of safety.

The implementation of safety programmeby DGCA and safety management systems byall stakeholders needs to be ensured. DGCA’sinfrastructure will need to be upgraded andthe organisation modernised to meet the chal-lenges of growth. The infrastructure develop-ment includes proper working environment,comprehensive computerisation plan includ-ing computerisation of the examinationprocess by introducing on-line and on-demand examination system.

Immediate need is to have an independentsafety regulator without any further delay andthe capacity building of DGCA in terms of


With theadvancement in

aviationactivities in

India, challengesto keep the skiessafe need to be

metappropriately.

Safety is ofparamount

importance. Theexpansion of air

transport in Indiais among thefastest in the

world

MORE FOR FLYERS: Passengers busy in a lounge area of one of the airports entertaining themselves.


recruitment and training of all safety relatedtechnical personnel. DGCA needs to be restruc-tured and strengthened with modernisedprocesses and skills before it is subsumed intothe Civil Aviation Authority that is on the anvil.

Airports Authority of India (AAI) is theAir Navigation Service Provider (ANSP) at allairports in India including six joint ventureairports. Global best practices, suggest thatthe benefits of corporatisation of ANSP aremany and these include: that it would enablethe entity to operate independently and carryout its own strategic operation and financialdecisions and adhere to a business approach;enhances its ability to generate and manageits own revenue to cover costs; bring in costoriented charges for the users through mod-ernization and constant enhancement of effi-ciency of operations besides retaining safetyas a primary goal. This process needs to begiven priority.

SKILL DEFICIT The impressive growth in Indian aviation hasresulted in a similar growth in employmentopportunities in the sector. However, the sup-ply of available skilled manpower has notbeen able to match the requirement. With pas-sengers and aircraft fleet likely to triple by2025, the need to augment the skilled man-power supply is immediate. Total manpowerrequirement of airlines in India is estimated torise from 62,000 in FY-2011 to 117,000 by FY-2017. This includes the number of pilots, cabincrew, aircraft engineers and technicians(MRO), ground handling staff, cargo handlingstaff, administrative and sales staff. Based onthe projected passenger traffic and assumingthe employee per million passenger ratio tobecome leaner for smaller airports as mod-ernisation and other efficiency improvementinitiatives are undertaken, the manpowerrequirement (including ANS) for the airportsis estimated to increase from current 20,000 to

26,000-30,000 by FY 2017. Despite the exis-tence of large number of private institutionsin India that provide aviation education andtraining, there is consensus that the number ofprogrammes offered, the depth of course con-tained and the infrastructure facilities avail-able with them are not sufficient to meet theneeds of the industry. Also, the quality of asubstantial number of them is not up to thestandard that is expected of them. There is noflying training institute for training civil heli-copter pilots in the country.

The focus of the institutes so far has beenin conducting the programmes to meet theimmediate needs of the industry. There is alsoa near total absence of credible institutionsundertaking serious research or providingresearch facilities in the field of civil aviation.Therefore, higher education and extensiveresearch in frontiers of technology, and sci-ence that is fundamental to long term interestof the sector is of vital importance. It is foundthat there is a near absence of qualitative andduly recognised formal educational pro-grammes leading to award ofdiploma/degree/post-graduate degree in thefield of civil Aviation in the country. As aresult of this, all major as well as minor agen-cies/organisations in the sector have to mostlyrecruit generalists and invest considerableresources in post recruitment training.

The opportunity cost of not investing inhuman capital required for civil aviation sec-tor at this juncture would result in, reducedgrowth, increased cost of operations, compro-mise on safety and missed opportunities. It is,therefore, necessary to establish a NationalAviation University to cater to the growingeducational and training requirements of thecivil aviation sector which will also infuse thebest practices in the world to streamline andmodernise the safety regulatory frameworkgoverning aviation education and training inthe country.


The impressivegrowth in

Indian aviationhas resulted in a similargrowth in

employmentopportunities in the sector

READY FOR THE GROWTH: Planes of Air India, Jet Airways and Spicejet lined up at apron.

OUTLOOKSPECIALC R U I S I N G H E I G H T S M A R C H 2 0 1 2

This Singapore Airshow AviationLeadership Summit has evolved overwhat has been the most difficultdecade in the history of aviation. Ourcentral scenario for 2012 sees an indus-

try profit of $3.5 billion. That may soundimpressive, but for an industry with anticipat-ed revenues of more than $600 billion, thatamounts to a meagre 0.6 per cent margin. Andif we are right about that forecast, then in theyears since 2001 airlines will have lost $26 bil-lion on revenues of $5.5 trillion. You cannotsustain a business or an industry that is allturnover with no leftover.

There are lots of reasons for this poor per-formance, not least of which is the parade ofsuccessive shocks that the industry faced —terrorism, war, SARS, new strains of influen-za, soaring oil prices, political unrest and aglobal credit crises — to name just the mostmemorable!

Fortunately, aviation is resilient. An amaz-ing team effort of value chain partners — inboth the public and private sectors — makesaviation an efficient and environmentallyresponsible industry that connects marketsand business across the world. Workingtogether, aviation safely carried 2.8 billionpeople and 46 million tonnes of cargo in 2011.That's an incredible achievement by anymeasure.

And, contrary to some opinions, our mem-ber airlines are providing this incrediblemobility with even greater value to con-sumers. My chief economist tells me that overthe last decade the real cost of travel has fall-

en by about a third. I put the theory to the testwith some online research on flights fromSingapore to New York. The distance is about15,000 km. And without much effort I foundfares as low as $1,500. For 10 cents a kilometre,airlines will transport you with amazinglyreliable technology to the other side of worldin just over 24 hours. Along the journey, theywill provide several meals and even show youa movie or two! No matter how you look atit…that's value. And if the price of oil was abit cheaper, we could probably do even more!

This unique meeting of government andindustry leaders is about partnerships.Sometimes our agenda seems driven by issuesthat keep us apart-areas where we disagree.One of the things that I would like to do whileI am at IATA is to focus on using a partnershipapproach to make the most of the areas wherewe can find some common ground. We won'tagree on everything. And there is a need for arobust exchange of ideas on many issues tofind solutions.

THE POWER OF PARTNERSHIPSSafety is our greatest example of partnershipdelivering success. We have global standardsthat guide governments and industry. There isa process for constant review and progress.And the results can be seen in the better than40 per cent improvement in the hull loss ratefor Western-built jets over the last decade. Wecan be proud that together we have made fly-ing not only the safest mode of transport, butalso one of the safest things that a person cando.


Safety is ourgreatest example

of partnershipdelivering

success. Wehave globalstandards

that guide

governments andindustry

LOOKING AT THE FUTURE, IATA CHIEF TONY TYLER EXPECTS MORE THAN 3.55 BILLIONPEOPLE TO FLY IN 2015 WITH 212 MILLION FROM CHINA ALONE AND INDIA WILL NOT BE FARBEHIND. AVIATION’S SUCCESS WILL DEPEND ON THE ABILITY OF INDUSTRY LEADERS TOCOOPERATE ACROSS BUSINESS INTERESTS AND POLITICAL BORDERS.

FOCUS

“Asia-Pacific will be in the driver’s seatof global growth…the potential is huge”

TONY TYLER

The cooperation on safety among all stake-holders in the aviation value chain representsthe best kind of partnership. We truly are unit-ed around common goals and shared inter-ests. But sometimes partnerships need re-bal-ancing. I think that it is a fair statement thatairlines have emerged from the last decadewith more bruises than most of their partnersin the value chain. Every business activitycomes with risks. Aviation is no different. Butthe balance between risk and reward isskewed in our industry. And I hope that in ourdiscussions we will take a candid look at waysto build a financially sustainable future,shared equitably among all participants in thevalue chain.

There is also a need to review the indus-try's relationship with governments. When itworks, the results are brilliant. Look at ourSingapore hosts. We have a world-class airlineand a world class airport. The industry sup-ports 119,000 quality jobs and contributes 5.4per cent to GDP. The connectivity that avia-tion provides to Singapore has enabled it todevelop as a successful regional hub for sec-tors as widely different as finance, healthcare,culture and education.

But Singapore's progressive approach isby no means universal. Look at India. It is amarket with enormous potential. But avia-tion's development is being held back by gov-ernment policies. High taxes mean that fuelaccounts for an average of 45 per cent of anIndian airline's operating costs-against anindustry average of 32 per cent. A lack ofcapacity in the country's economic heart-Mumbai-restricts connectivity, while develop-ment of the new Navi Mumbai airport seems

to incur a fresh roadblock at every stage of itsdevelopment. And where world-class infra-structure has been built-as in Delhi-costs arean issue. Proposals to boost charges by 340 percent may earn it distinction as one of theworld's most expensive airports, but it willdestroy Delhi's competitiveness as a hub.

The stunted growth of Indian aviationcomes with an economic cost. India's popula-tion is about 240 times the size of Singapore's.But the number of aviation jobs is just about14 times larger at 1.7 million. And the eco-nomic contribution of aviation is still only 0.5per cent to the Indian economy. It is an impor-tant 0.5 per cent. But even considering the dif-ferential in GDP per capita between Singaporeand India, these numbers tell us that there isunused potential in India. There is a need toreassess policies in order for aviation to reachits potential as a primary contributor toIndia's economic growth.

India is not the only place that could dobetter… Europe is going through a difficulttime. Governments need to restart economiesthat have been crippled by the sovereign debtcrisis. Economic growth is the only way for-ward and aviation can help. But it can onlymake a contribution if it is not hamstrung bypolicies focused on restricting its growth andtaxing its every move. I urged Europe to useaviation more strategically through policiesthat support growth, efficiency and competi-tiveness.

GROWTHAviation is a growing industry. Even in theface of enormous economic uncertainty in2011, the number of passengers grew by near-


India is not theonly place that

could do better.Europe is going

through adifficult time.Governments

need to restarteconomies that

have beencrippled by thesovereign debt

crisis

SUSTAINABLE FUEL: SirRichard Branson.President, Virgin Atlantic (in the middle) during theunveiling of world-first lowcarbon aviation bio-fuel.

FOCUS

OUTLOOKSPECIALC R U I S I N G H E I G H T S M A R C H 2 0 1 2FOCUS

ly 6 per cent. The connectivity that aviationprovides is essential for economic develop-ment, modern globalised businesses andhuman interaction…and demand for it isincreasing. And the pattern of that growth isshifting the industry's centre of gravity east-ward. Having just moved from Hong Kong toGeneva, I am an exception.

Let's look at some market share numbers.Admittedly, there is some overlap as a resultof travel between regions, but if we set thisaside, we can see that in 2010 about a third ofall passengers traveled on routes to, from orwithin Asia-Pacific. For North America andEurope, the equivalent number was 31 percent. But if we look ahead to 2015, we antici-pate that Asia-Pacific will represent 37 percent, while traffic associated with Europe andNorth America will fall to 29 per cent.

SECURITYThe challenge of security changed dramatical-ly on September 11, 2001. In the decade thatfollowed, we have seen the security of theindustry improve dramatically. But improve-ment came with a steep price: costs to airlinesand passengers grew to at least $7.4 billionannually. And the throughput of the systemslowed dramatically.

Prior to 9/11 we estimate that the averagethroughput of an airport checkpoint was 335passengers per hour. Today that average hasslowed to 149. Security is a top priority. And itmust not be compromised. But I am sure thatevery traveller hopes for an early evolutionfrom an airport checkpoint experience definedby queuing, unpacking, removing clothing,separating certain items and possibly invasivesearches. The system works, but it is strug-gling to cope with the volumes of today. Andwhen we add another 877 million passengersto the queues in a few years, the experience isbound to deteriorate even further.

That is why one of my priorities is to buildglobal consensus that will see the Checkpointof the Future succeed. The concept has twomain elements. First, we want to differentiatescreening using passenger informationalready collected for immigration purposes.Every passenger will be screened to a base-line. Those that we know little about or whoappear on a government watch-list wouldreceive enhanced screening. And those whohave volunteered for background checkswould normally have access to expeditedscreening. The concept is being proven by aknown traveller programme that is being suc-cessfully trialed by the US TransportationSecurity Administration. And we are workingwith Interpol and the International CivilAviation Organisation (ICAO) on global stan-dards.

The key to delivering the Checkpoint ofthe Future is global coordination with indus-

try and among governments. And it is hap-pening with support from major players suchas the European Commission, the ChineseGovernment, the US Department ofHomeland Security and Interpol.

CLIMATE CHANGEAlongside safety and security, environmentalresponsibility is a core promise and top prior-ity of the aviation industry. That is why air-lines, airports, air navigation serviceproviders and manufacturers have joinedtogether in a global commitment to reduceaviation's carbon footprint by:

Improving fuel efficiency by an average of1.5 per cent annually to 2020,Capping net emissions from 2020 with car-bon-neutral growth, andCutting our carbon footprint in half by2050 compared to that of 2005 levels.We also achieved consensus on a strategy

to attain these targets with improved technol-ogy, more efficient operations and infrastruc-ture, and positive economic measures.

SUSTAINABLE BIOFUELSThese commitments offer great opportunitiesto governments everywhere. Sustainable bio-fuels are a good example. Over their lifecycle,biofuels have the potential to reduce emis-sions by up to 80 per cent. And developing asustainable biofuels industry will create jobsand reduce dependence on oil supplies whileshrinking aviation's carbon footprint. ForAsia-Pacific, the possibilities are particularlyattractive. A sustainable biofuels industrycould lift millions from poverty. And themany options for biomass-from urban wasteto algae, jatropha or camelina-mean that pro-duction can concentrate on the source crop ormaterial most suited to local conditions.

OPERATIONAL MEASURESThe excitement over sustainable biofuelsshould not cause us to overlook the tremen-dous potential offered by operational meas-ures. I was urging Europe to move forward onthe Single European Sky which has the poten-tial to save 16 million tonnes of carbon emis-sions annually.

We recently had the good news of the USFederal Aviation Administration re-authorisa-tion, which I hope will pave the way for swiftprogress on NextGen for the country's air traf-fic management system. And I am pleasedthat the discussion of a Seamless Asian Sky isgaining momentum.

These are all win-win solutions. The envi-ronment benefits from fewer carbon emissions.Airlines operate more economically. Travelersget to their destinations faster and with fewerdelays. And national economies benefit frommore efficient connectivity.


The challenge ofsecurity changeddramatically onSeptember 11,

2001. In thedecade thatfollowed, we

have seen thesecurity of the

industry improvedramatically

OUTLOOKSPECIALC R U I S I N G H E I G H T S M A R C H 2 0 1 2FOCUS

EUROPEAN UNION EMISSIONSTRADING SCHEME (EU ETS)

We recognise, however, that it will taketime for these technical, infrastructure andoperational improvements to allow us to meetour targets. Positive economic measures suchas emissions trading are a necessary, if tempo-rary, bridge to reach aviation's climate changetargets.

But as with our other top priorities of safe-ty and security, these measures must be glob-ally coordinated to be effective. Europedeserves much credit for pushing this issue upthe international agenda. So it is no surprisethat Europe is on the forefront on emissionstrading, but its unilateral approach is prob-lematic.

Departure taxes in the UK, Germany andAustria-introduced as environmental meas-ures-amount to well over €4 billion. At currentmarket prices for UN issued CertifiedEmissions Reductions, that would offset allthe world's aviation CO2 emissions about one-and-a-half times. And ETS is being added ontop of all that!

Non-European governments see this extra-territorial tax collection as an attack on theirsovereignty. And they are taking action.

The ICAO Council has adopted a resolu-tion urging Europe to change course.China declared that its carriers could notparticipate.The US is processing similar legislation forits carriers.And in fact at least 43 states are publicly

opposed. They will shortly meet in Moscow toplan next steps. Some are threatening retalia-tory measures against European carriers or

other European business sectors.Aviation can ill afford to be caught in an

escalating political or trade conflict over theEU ETS.

There is a way forward-ICAO. About adecade ago, ICAO achieved a globally-accept-ed balanced approach to noise that averted aconflict over Europe's unilateral plans. ICAOcan do the same for climate change.

The 2010 Assembly agreed to 15 principlesfor economic measures and committed todevelop a framework for a global trading orcompensation scheme by the next Assembly inthe third quarter of 2013.

In Brussels, I sensed a growing recognitionthat a global scheme, developed and imple-mented through ICAO, would provide a supe-rior solution to the problem of airline emis-sions.

CONCLUSIONAviation is a great industry. It is a force forgood in the world that generates wealth - bothmaterial and of the human spirit. It has enor-mous potential - particularly in this region.And aviation's success depends on our abilityas industry leaders to cooperate as we havedone throughout our history-across businessinterests and political borders.

Our goal is to drive change and overcomechallenges together-the theme of this confer-ence. That will enable us to build our future bycontinually improving the safety, security, effi-ciency and sustainability of our industry.

(Excerpts from the speech delivered by IATA'sDirector General and CEO at the SingaporeAirshow Aviation Leadership Summit.)


Aviation is agreat industry. It

is a force for good in the

world thatgenerates

wealth — both material and of

the human spirit

STRICT VIGIL: A flyer beingscreened through a scannerat one of the airports.

INTERVIEW

AAI has got several training facilitiesspread all over India. Please give us a briefoverview of these training facilities and whathave they achieved?We have four training institutes: CATC, IAA,FSTC and FTC at Allahabad, New Delhi,Kolkata and New Delhi, respectively, of whichthree can be categorised as cadre specific andspecialised training institutes and one isGeneral Cadre for overall developments.

INDIAN AVIATION ACADEMY (IAA)IAA has been formed under the aegis

of NIAMAR society. The society was registeredon July 22, 2010 as an autonomous body to pro-vide education, training, research and consul-tancy in the fields of aviation. Various trainingprogrammes on safety and regulation, aviationsecurity and airport management are conduct-ed at the academy for capacity building in civilaviation to meet the challenges of rapid growthof civil aviation in India. It is a joint trainingacademy of Director General of Civil Aviation,Bureau of Civil Aviation Security and AirportsAuthority of India, the main stakeholders ofcivil aviation in India. Within a year of its regis-tration, IAA has been approved as the AviationSecurity Training Centre by ICAO and as anAuthorised Training Centre of IATA.

“AAI’S LEADERSHIP PRINCIPLESARE THE BASIS OF OUR BUSINESSRELATIONSHIPS”AIRPORTS AUTHORITY OF INDIACHAIRMAN V P AGRAWAL POINTS OUT THENEED TO HAVE A HIGHLY MOTIVATED, TAL-ENTED AND PROFESSIONAL WORKFORCEIN THIS INTERVIEW. EXCERPTS.


CIVIL AVIATION TRAINING COLLEGE(CATC)

CATC, Allahabad was established byDGCA in 1948 which now is part of AAI. Infact, it is the pioneer institute in the countrywhich has been imparting training in variousaviation fields, forte being CNS technology andair traffic management. It is the main feeder ofproducing technical personnel in the CNS-ATM fields. CATC has been rendering yeo-man’s service to the aviation fraternity bychurning out raw graduates into highly quali-fied personal manning the ground based avia-tion activities. It is a member of ICAO-TRAINAIR programme.

FIRE SERVICES TRAINING INSTITUTES(FSTC, KOLKATA & FTC, NEW DELHI)

Both these institutions were formed in1958 and 1976, respectively to meet the require-ments of training fire safety personnel for thepurposes of airfield fire and rescue services.Training imparted is in consonance with theICAO guidelines.

The IAA is likely to be converted into aworld class aviation university that will trainyoungsters not just from India but from allover the region for aviation-related activities.What would be the role and scope of IAA?In the short-term, IAA plans to deliver certifi-cate courses in various aviation fields such asaviation safety, aviation security and airportmanagement. In the long-term, the academyplans to turn itself into an university of reputewhich will conduct long-term courses includ-ing diploma/degree programmes in aviationmanagement.

How good is the Institute at Allahabad interms of keeping pace with the modernisationof airspace and what are your short-term andlong-term plans at Allahabad?In CNS discipline, training facilities have keptpace with the change and advancement in tech-nology.

In ATM, the training courses are regularlyupdated and revised as per training require-ment of stakeholders. In ever-changing sce-nario of technology advancement, the AirTraffic Controllers are now exposed to updatedcurriculum in areas of performance based nav-igation procedure design, ADS-B based trafficsurveillance and control and modern SAM-SAR-based search and rescue procedures. Acourse to test Proficiency of English Language(PELA) for Air traffic Controllers have alsobeen introduced recently for all Induction-levelTrainees. The manual simulation-based proce-dural training has been replaced by state-of-artsystem based simulator by Adacel, Canada.Refresher courses for on the job instructors(OJT Instructor), Safety Management System(SMS), a computer based course on obstacle

limitation and instrument procedure design arealso likely to be introduced in near future. Upgradation of existing RADAR and AudioVisual Aerodrome Control Simulator is alsobeing undertaken to meet the enhanced train-ing requirement.

What are the critical areas where training isrequired for people interested in working inthe airport business? As civil aviation in India is increasing at a rapidpace — almost 15 per cent per annum — thereis need to train and develop the needed man-power for various functions of aviation management. The critical areas where the train-ing is needed for people interested in takingairport business as a career are the terminal andairside operations management, facility man-agement, civil, electrical and electronics instal-lations, at airports, Airport Planning, AirportCommercial Functions, Airport CargoManagement etc.

Conserving the amount of personnelrequired to keep pace with the growth inIndian aviation what sort of personnel wouldbe needed over the next 20 years?It is a well-accepted and established fact thatairports play a pivotal role in the country’s eco-nomic and industrial growth.

However, here is what it takes to attract,select, develop and retain a highly motivatedprofessional workforce for an organisationsuch as AAI which is not only technically-ori-ented but also has to ensure highest standardsof safety as there is no scope for margins oferror. AAI can ill-afford to lower its guard asramifications of the minutest accident havewidespread/internal implications. AAI, being amulti-disciplinary/faceted organisation, offersa unique opportunity for professional growthin areas like management of airports andregions (consisting of multiple airports), whichentails command and control of operations(inclusive of airspace management), finance,technical (inclusive of engineering i.e. electron-ics/communications, civil, electrical and


AAI, being a multi-faceted

organisation,offers a uniqueopportunity for

professionalgrowth in

management ofairports which

entailscommand and

control ofoperations,

finance,technical, etc

COORDINATION: AAIChairman V P Agrawaldiscusses with officersduring a visit to theFire Training Instituteat Delhi.



mechanical) and HR. More importantly, withservice in AAI having an all-India posting lia-bility, one gets an exposure to the diverseIndian culture and heritage, which undoubted-ly contributes to experience and personalitygrowth of individuals. AAI lays great emphasison evolving the values, ethics, work ethos andHR policies that are required to not only attractbut also to ensure that they go a long way inretaining talented professionals within the foldof AAI. We have to take into consideration thecore business of AAI, i.e. managing airports/air-space which demands 100 per cent safety andthus, the need to have a highly motivated, tal-ented and professional workforce.

It is a well-established fact that it is theknowledge, skills and competence of AAI’semployees which decide on its success in themarketplace. Therefore, what is important ishow the professionals are treated from whoflow out values and objectives.

How do you upgrade the skills of AAIemployees? Our values and leadership principles describehow our employees behave, as they are thebasis of our business relationships. Therefore,special attention is paid to the AAI’s values andthe company culture which aim at:

Value for the customerIntegrityVisible leadershipCommitment to people developmentContinuous improvement of products andservicesSafety of employees and passengersSuperior business organisationTruthful, timely and continuous information

Our senior management is not only committedto these values and work ethos but practicethem also to demonstrate the path to others.

AAI Human Resource PolicyEmployment and employee motivation

AAI, being a Schedule ‘A’ organisa-tion, wherein its core business is to work along-side/in association with many an internationalorganisations, offers a variety of attractive posi-tions. The majority of them are tightly linked tocustomers and to our business of managing air-ports and airspace. They require high levels ofcompetence, skills and knowledge.

AAI believes that only highly motivat-ed employees are the key to customer satisfac-tion leading to business success. Therefore, welay emphasis on employee motivation and cre-ate action plans accordingly in order to con-stantly improve the motivation level so as tosustain it to desired degree. The aim is to estab-lish a long-term work relationship in exchangefor the commitment of the employees to adaptto constantly changing technology require-ments through professional reorientation, con-tinuous learning and mobility. We also strive

for a congenial working environment that pro-tects health of the employees according to highstandards of safety and security.

People DevelopmentOur success essentially depends on the qualityof our people. We, therefore, seek to attract,retain and develop the right mix of people, whodisplay, in addition to their professional skills,the following competencies:

Customer orientationPeople orientationAchievement orientationLeadershipImpactSelf-confidence

Other than the relevant skills, experienceand above-mentioned competencies, we give noconsideration to employees’ origin, race, reli-gion or gender.

Have you received any requests for trainingof personnel of other countries on a regularbasis?

IAA: There have been requests for trainingof personnel from countries such as IslamicRepublic of Afghanistan, African Union etc.Recently, we have trained a group of 20 avi-ation personnel from Islamic Republic ofAfghanistan in orientation programme foraviation management. We have alsoreceived requests from Bhutan, Nepal andBangladesh. CATC: There are regular requests from for-eign countries. However, CATC accommo-dates all the customers under bilateralagreements by Government of India.FSTC: Our international customers areEthiopia, Surinam, Mauritius, Afghanistan,Yemen, Sri Lanka, Nepal and Bhutan.

Are there any certifications that you provideto trained personnel and are these valid acrossthe globe?

IAA: Being a registered body and spon-sored organisation of AAI, DGCA andBCAS, the certificates are issued by the IAAfor all courses conducted. However, uponbecoming an university in due course oftime, the certificates, diplomas and degreeswill be valid across the globe.CATC: All trainees are issued certificates.Since all our courses are designed and con-ducted as per TRAINAIR/ICAO guidelines,international participants receive the certifi-cates and these certificates are accepted byrespective civil aviation authorities of theircountries under bilateral agreements.FSTC: Certificates are issued to candidateson successful completion of training.However, both training centres are listed inthe training director of ICAO and the advi-sory circular of Federal AviationAdministration (FAA).

AAI lays greatemphasis onevolving the

values, ethics,work ethos andHR policies thatare required tonot only attract

but also toensure that theygo a long way in

retainingtalented

professionals

The Airports Authority of India (AAI) is the largest airport operator andmanages a total of 125 airports, whichinclude 11 international airports, eightCustoms airports, 81 domestic airports

and 25 civil enclaves at defence airfields. AAIalso provides Air Traffic Management Services(ATMS) over the entire Indian airspace andadjoining oceanic areas with ground installa-tions at all airports and 25 other locations toensure safety of aircraft operations.

As part of the modernisation programmeand to provide world-class standards to trav-ellers, AAI has entered into a collaborationwith all major metro airports in the country,including those in the PPP mode to upgradethe CNS ATM services at these airports to pro-vide them better connectivity and a smootherflow of air traffic 24 x 7. It is in keeping withAAI’s commitment to provide cutting- edgeCNS ATM services to cope with the increasetraffic loads at these airports. All the major air-routes over Indian landmass are radar coveredwith distance measuring equipment. Most ofthe airports are also provided with night-land-ing facilities. Besides, 52 runways are providedwith ILS installations.

With AAI’s successful implementation ofAutomatic Dependence Surveillance System(ADSS), using indigenous technology atKolkata and Chennai Air Traffic ControlCentres, India gets the distinction of being thefirst country to use this advanced technology inthe South-East Asian region thus enablingeffective Air Traffic Control over oceanic areasusing satellite mode of communication.Performance-Based Navigation (PBN) proce-dures have already been implemented at majorairports and are likely to be implemented atother airports in a phased manner.

AAI has also undertaken GAGAN projectin technological collaboration with the IndianSpace and Research Organisation (ISRO),where the satellite-based system will be usedfor navigation.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2AAI SPECIAL

NO FULLSTOPS FOR AAIENHANCING AVIATION INFRASTRUCTURE ACROSS INDIA


Agatti AirportBengaluru Int’l Airport (BIAL)*Bengaluru (CE)Calicut/Kozhikode*Chennai Int’l AirportCochin Int’l Airport*Coimbatore Airport**Hubli AirportHyderabad (Begumpet) AirportHyderabad / Shamshabad Int’lAirport*Madurai Airport

Mangalore Customs Airport**Pondicherry / Puducherry Airport*Rajahmundry AirportSalem AirportTrivandrum Int’l Airport*Thiruchirapalli Customs Airport**Tirupati AirportTuticorin AirportVijayawada AirportVishakapatnam Airport (CE)

Ahmedabad *AkolaAurangabadBhavnagarBhopalBhuj (CE)DiuGoa (CE)Gondia

IndoreJabalpurJamnagar (CE)KandlaKeshod/JunagarhKolhapurLatur Mumbai*(Santacruz)

Mumbai (Juhu)Nagpur* /SonegaonNanded PorbandarPune (CE)/LohegaonRajkotSholapur Surat/DumasVadodara/Baroda

WESTERN REGION

SOUTHERN REGION

THE AIRPORTS AUTHORITY OF INDIA MANAGES A MIND-BOGGLING NUMBER OF 125 AIR-PORTS THAT INCLUDE 11 INTERNATIONAL AIRPORTS, 8 CUSTOMS AIRPORTS, 81 DOMES-TIC AIRPORTS AND 25 CIVIL ENCLAVES AT DEFENCE AIRFIELDS — INDEED, A GIGANTICTASK THAT AAI PERFORMS WITH FINESSE. IN ADDITION, AAI HAS UNDERTAKEN A MASSIVEMODERNISATION PROJECT TO UPGRADE A NUMBER OF AIRPORTS THAT WILL PROVIDEWORLD-CLASS SERVICES TO FLYERS. A LOOK AT WHAT AAI IS DOING IN THE FOUR COR-NERS OF THE COUNTRY.

AAI has also planned to provide Ground-Based Augmentation System (GBAS) at Delhiand Mumbai airports. This GBAS equipmentwill be capable of providing Category-II(curved approach) landing signals to aircraft,thus replacing the existing instrument land-ing system in the long run, which is requiredat each end of the runway.


AAI SPECIAL

BhubaneswarCooch BeharGaya**Kolkata*Patna**Port Blair (CE)*RaipurRanchi

AgartalaAizawl (Lengpui)Bagdogra, (CE) **Dibrugarh (Mohanbari)Dimapur/ (Manipur RD)Guwahati (Borjhar)*Imphal (Tulihal)Jorhat, (CE)North Lakhimpur (Lilabari)Shillong Silchar (Kumbhigram), (CE)Barapani/ UmaroiTezpur, (CE)

Agra (CE)Allahabad (CE)Amritsar (International)Chandigarh (CE)DehradunDelhi-IGI (CNS/ATM BY AAI)Delhi (Safdarjung)Gorakhpur (CE)Gwalior (CE)Jaipur (International)Jaisalmer (CE)Jammu (CE)Jodhpur (CE)

Kanpur (Civil)Kanpur (Chakeri-CE)KhajurahoKullu (Bhuntar)Leh (CE)Lucknow (Customs)LudhianaPantnagarPathankot (CE)ShimlaSrinagar (International-CE)UdaipurVaranasi (Customs)

Agra (C.E)

Delhi-IGI* (CNS/ATM BY AAI)Delhi (Safdarjung)

Lucknow**Gorakhpur (C E)

Kanpur (Civil)

Kanpur (Chakeri-C.E)

Allahabad (C.E)

Leh (C.E)Srinagar

(International-C.E)

Pathankot (C.E)Jammu (C.E)

Gwalior (C.E)

Khajuraho

Jaisalmer (CE)

Varanasi**

Jaipur*

Amritsar*

Chandigarh (C.E) Dehradun

Pantnagar

Kullu (Bhuntar)

ShimlaLudhiana

Jodhpur (C.E)

Udaipur

Ranchi

Patna**

Porbandar

Jamnagar (CE)

RajkotGondia

Port Blair (CE)*

RaipurNagpur*/Sonegaon

Bhopal

Bagdogra, (CE) **

Dibrugarh (Mohanbari)North Lakhimpur (Lilabari)

Dimapur/ (Manipur RD)

Silchar (Kumbhigram), (CE)

Cooch BeharTezpur, (CE)

Jorhat, (CE)

Imphal (Tulihal)

Guwahati (Borjhar)*

Gaya**

IndoreKolkata Int’l Airport*

Agartala

Aizawl (Lengpui)

(Barapani/ Umaroi)

Shillong

Bhubaneswar

Vadodara/Baroda

Surat/Dumas

Jabalpur

Diu

Bhavnagar

LaturNanded

Bhuj (CE)

Keshod/Junagarh

Kandla

Goa (C.E)

Kolhapur

Calicut/Kozhikode*

SalemMangalore **

Cochin*

Bangalore CEBangalore Int’l Airport *

Coimbatore**Thiruchirapalli**

Madurai

Tuticorin

Hubli

Hyderabad (Begumpet) Airport Shamshabad Int’l Airport*

Vijayawada

Vishakapatnam(CE)

Tirupati

Rajahmundry

Pondicherry /Puducherry Airport*

Trivandrum*

Sholapur

Mumbai (Juhu)Mumbai Int’l Airport*Santacruz

Pune (CE)/Lohegaon

Aurangabad

Ahmedabad *

Map not to scale* International Airport** Customs airports are airports with international flights usually operated by the country’s national carrier.

Agatti Airport

EASTERN REGION

NORTHERN REGION

NORTH-EASTERN REGION

The revamped, modernised and expand-ed Chennai airport will throw open itsdoors for commercial traffic sometimein the first quarter of 2012. Till then,the existing facilities both in terms of

airside and non-aeronautical side includingthe existing terminals — domestic and inter-national — will continue to operate.

As per the status of Chennai airport ondate, it has a total land area of 1298.01 acreswith length of perimeter wall running 15 kilo-meters and the perimeter road meandering 14kilometres. Its main runway 07/25 is 3658metres long or over 12000 feet which isenough for a Jumbo to operate. The secondary

runway 12/30 which was 2085 metres or 6765feet has been extended by way of a stiltedbridge on the Adayar river by another 1032metres or nearly 3400 feet to take the totallength to just about 10,000 feet. The length andwidth of the RCC/pre-stressed concrete bridgeis 200 metres by 447.50 metres to accommo-date secondary runway and parallel taxi track.The bridge will be able to take an A 380 super-jumbo landing.

Chennai airport has 17 taxiways and 81parking stands. It has five aerobridges to caterto international passengers and three fordomestic. Chennai airport falling under the 4Ecategory is undergoing a massive renovation


CHENNAI READIES FOR A DATE IN 2012


AAI’S SHOWPIECE AIRPORT IN THE SOUTH IS NEARING COMPLETION AND ONCE READY WILLBE ABLE TO HANDLE AROUND 30 MILLION PASSENGERS.

Chennai airporthas 17

taxiwaysand 81 parking

stands.It has five

aerobridges

STEPS TO THE FUTURE : An artist’s impression of Chennai airport.

AAI

that will see a completely brand new all steeland glass front when the passengers and air-lines get to use it in early 2012. The domesticterminal which was commissioned in April1985 went through periodic upgrades andtoday is spread over 19,250 square metres.Against an annual passenger handling capaci-ty of six millon, in fiscal 2010-11, the airporthandled 7.80 million domestic passengers.The peak-hour handling capacity in the depar-ture hall is 800 while in the arrival hall it is1200. There are only four baggage conveyorbelts in the domestic arrival hall. The domes-tic terminal has 48 check-in counters.

The international terminal, which wastwice commissioned — once in April 1989 andlater upgraded in May 2003 — is spread over42,870 square metres with an annual passen-ger handling capacity of three million. The air-port, however, handled 4.25 million passen-gers in 2010-11. During peak hours, it has ahandling capacity of 1200 in the departure halland 750 in the arrival hall and another 350 inthe transit hall. It has four-baggage conveyorbelts and 44 check-in counters besides ninearrival counters for customs and 22 arrivalimmigration counters as against two depar-ture Customs and 16 departure immigrationcounters.

The proposed domestic integrated termi-nal building with its three-level structureunder construction will have an area of 72,614square metres. It has a provision for sevengates and two hardstand hold rooms and 52check-in counters excluding eight e-ticketingcounters. The international terminal building

with also a three-level structure under con-struction shall be of 60,528 square metres andhave a provision for two gates with multiplehardstand hold rooms, 52 check-in countersexcluding eight counters for e-ticketing.Besides, the international terminal will have18 immigration and four Customs counters fordeparture passengers.

While the capacity of the new domesticterminal building will be for 10 million pas-sengers per annum, the new international ter-minal building will cater to four million pas-sengers per annum. After completion of thetwo new terminal buildings, the capacity ofChennai airport will be 23 million passengersper annum against the 2010-11 handled 12.05million (the designated capacity of both theterminals is nine million only). In that sense,once the expanded and upgraded Chennai air-port formally opens all its wings, Chennaiwould be able to handle nearly 30 million pas-sengers though the actual handling capacitywill be 16 million in domestic and seven mil-lion in the international terminal with peak-hour passenger-handling capacity of 3300 fordomestic and 2300 for the international termi-nal.

In the revamped Chennai airport, the newinternational and domestic terminals will beconnected with an elevated road (flyover) of akilometre. With construction on in full swing,the massive steel and glass structure will bedefined by dramatic, twin wing-like hoveringroofs providing a 300 metre-long column-freespace. The straightforward planning andsuper-efficient organisation of the


AAI SPECIAL

In the revampedChennai airport,

the newinternational and

domesticterminals will beconnected with

an elevated road(flyover) of a

kilometre.

BUSY AREA:Passengers wait forbaggage in the air-port.

AAI


programme, security and circulation, as per anAAI official at the site, formed the basis of aninnovative design that incorporates vibrantsustainable gardens. Unlike any other airportin the world, Chennai airport will have lushgreen gardens on view throughout the terminalcreating a unique dialogue between engineer-ing and nature.

The building volume will be clearly dividedinto the landside and airside and the spacesconnected with a central security checkpointfor departure as well as two glass bridges oneither side for arriving passengers. The circula-tion will be so organised that departing andarriving passengers will never mingle at anypoint in the terminal. Special energy-efficienttechnologies have been incorporated in thedesign besides various water managementtechniques such as water-efficient landscaping,rain water harvesting, water-efficient fixtures,use of treated grey water for airconditioningcooling system and innovative effluent treat-ment plant. These will help in re-using wastewater.

Both the terminals will be equipped with asophisticated in-line baggage handling systemwhich will be capable of Level-4 securityscreening system. This system consists of fivedeparture conveyors including rejected bag-gage conveyor. There will be four arrivalcarousels in domestic and three in the interna-tional terminal. The total length of the convey-or will be 3500 metres which can handle 1250

pieces of baggage per hour. A glass tube connecting both international

and domestic terminal at the mezzanine levelfor length of 600 metres has been proposed onthe city side. This will facilitate the passengersto move from the domestic terminal to theinternational terminal and vice-versa. Therewill be two walkalators each of one meterwidth. It is also proposed to connect a metrostation by a link tube to the main glass tube. Indue course, the job for constructing the twomulti-level car parking will also be undertaken.Work will be initiated on the proposed metrorail station inside the airport premises withtotal area of 20,000 square metres with four-level terminal having concourse, platform, two-wheeler parking for metro users and car parkfor airport users. AAI will execute the work ofthe metro station within the airport premises.

In terms of passenger traffic, Chennai air-port is the third busiest in the country. The air-port is also undertaking a major revamp of itscargo facilities at a cost of `145 crore whichmay be increased later. An automatic storageand retrieval system is also being planned to beinstalled at this cargo complex which willimprove efficiency of cargo handling substan-tially. The cargo complex proposed in Chennaiwill be much bigger than what is available inHyderabad or Bengaluru. Already 75 per centof the construction is over and once complete,this will be the most modern airport cargocomplex in India.


The cargocomplex

proposed inChennai will be

much biggerthan what isavailable in

Hyderabad orBengaluru

FLYING HIGH:Construction work inprogress at Chennai.

AAI

Kolkata airport, widely known as NetajiSubhash Chandra Bose InternationalAirport, is located in Dum Dum area,approximately five kilometres from thenewly-developing IT hub and 17 kilo-

metres from Kolkata city centre. The fifth-busiestairport after Mumbai, Delhi, Bengaluru andChennai, Kolkata handles over nine million pas-sengers yearly against its designed total capacityof five million split between the international anddomestic terminals. Since the present terminal ismore than saturated, the government decided in2008 to undertake massive modernisation-cum-expansion of Kolkata airport. The job of execut-ing the expansion projection was given to thestate-owned Airports Authority of India (AAI)which is literally racing against time to completeit. Once the work is completed by June 2012, thebrand-new steel and glass terminal will literallybe the pride of East. It will be able to handle 20million passengers per annum with a floor carpetarea of more than 2,33,000 sq mt.

The current expansion project is actually thePhase I of Kolkata airport modernisation and thesecond phase is slated to begin in 2015-16. Sincethe city is the gateway to East (India) as also to therest of South-East Asia and Asia-Pacific, it isexpected that Kolkata will become an idealstopover for many flights originating fromEurope or the US bound for the Far East. Notonly will it become an important destination

point but also a transit point. Keeping all this inmind the Airports Authority of India has alreadybegun planning for the second phase that will seethe construction of a brand new third runway.

Phase-I envisages a project cost of `2350 croreof which the work cost of Italian-Thai companyITD has been estimated at `1602.60 crore. While90 per cent of the project work has been complet-ed, in financial terms nearly `1700 crore hasalready been spent.

The six-level integrated passenger terminalbuilding will be spread over 2,33,000 sq mt. It willhave a two-level car parking to accommodate1,250 cars. The service yard will have 24 trans-formers and 13 DG sets to beat any power shut-off. Besides the new airport terminal is designedto have six chillers and 12-set cooling tower witha capacity of 42,000 gallons per minute. For fliers,the new terminal will have 18 aerobridges, 60,000sq mt of neatly laid landscape, more than half-a-kilometre long or to be precise 515 mt of a flyoverand 2.7-km-long dedicated drainage system.

The annual traffic anticipated -once fullyoperational at its rated capacity -is 20 million ofwhich the international terminal will be saturatedby 2023-24 and domestic passenger traffic in2019-20. But considering the present passengertraffic handled of nine million against thedesigned capacity of five million, it looks likeKolkata airport will be able to handle much morethan the 20 million capacity as the existing


KOLKATA WILL BE GATEWAY TO APAC


COME JUNE THIS YEAR, THE NETAJI SUBHASH CHANDRA BOSE INTERNATIONAL AIRPORT WILLBE READY WITH ITS SPANKING NEW TERMINAL. PART OF A TWO PHASE MASSIVE MODERNI-SATION-CUM-EXPANSION PROJECT BY THE AIRPORTS AUTHORITY OF INDIA, KOLKATA AIR-PORT WILL BE AT PAR WITH THE BEST AROUND THE WORLD. R KRISHNAN RECENTLY WENT TOCHECK OUT THE PROGRESS OF WORK AND CAME BACK IMPRESSED.

TOUCHING THE SKIES : An artist’s impression of Kolkata airport’s terminal after it is completed.

AAI

domestic terminal will remain functional forsome more time in addition to the new one.

On the departure side of the new terminal,there will be 128 check-in-counters based on theconcept of CUTE or Common User TerminalEquipment covering both domestic and interna-tional terminals, respectively. There will be 28immigration counters in the international termi-nal besides 21 security gates with frisking boothsand 33 such security gates with frisking boothsin the domestic terminal. On the arrival side,there will be 40 immigration counters. Further,there will be three conveyor belts and six con-veyor belts respectively on the internationaldeparture and arrival side, respectively. On thedomestic side, there will be five conveyor beltson the departure side and 10 on the arrival side.In addition to the 18 aerobridges, on the interna-tional side, there will be 13 elevators, eight esca-lators and six travelators. On the domestic sidethere will be 14 elevators, eight escalators andseven travellators.

The new terminal is a five-tier building withthe bottom floor being the arrivals and upper-arrival area and the top being a departure andupper departure areas with basement for MEP(mechanical, electrical and plumbing) services.The environmentally responsive canopy designconsists of the setback of the double-wall systemof the canopy which is an effective measurementfor controlling the solar heat gained. The resultsof the thermal dynamics studies showing thecombination of the natural buoyancy driven andmechanically driven ventilation cavities are aneffective strategy for energy efficiency design.The north-facing roof lights and a central court-yard flood the interior with natural light.

The passenger terminal will have an apronfor parking aircraft on its northern and north-eastern sides. Eighteen aircraft are proposed to beparked in in-contact configuration. These standswill supplement to other 53 aircraft parking bays.Passengers will be able to embark or disembarkfrom any aircraft stand and be able to proceed toeither domestic or international sides.

Airport Director Dr B P Sharma pointed outthat the Kolkata airport modernisation projectand the associated runway extension was a pres-tigious job for the AAI. Speaking about the run-ways, Dr Sharma said that the international air-port had two runways of which the main runwaywas 3627 metres long and the secondary runwayhad been extended by 440 metres to 3270 metres.The other three metro airports -Delhi, Mumbaiand Chennai -have two runways each but theyare not parallel as they almost converge or crosseach other. Delhi has now got a third runwayover 4,000-metre-long runway, which is parallelto the main runway. Kolkata is perhaps uniquewith two parallel runways from day one with onethat has undergone modernisation while the sec-ondary runway has been extended. The mainrunway is 45 metres wide with a shoulder widthof 15 metres which is also a feature of the sec-

ondary runway. The two runways can allowoperation of Airbus A380 and Boeing 747.However, it must be stated that two runways areseparated by 260 metres and hence can allowonly simultaneous operation but not paralleloperation. This means while one runway can beused for landing the other can be used for take-off. However, there cannot be parallel landingand take-off on each runway.

It is proposed to create three more taxiways.When the second phase of modernisation-cum-expansion is taken up, AAI will consider con-structing another parallel taxiway. This will freeup the runways and, therefore, allow greateraircraft movement. AAI has identified 1,200acres of land near and adjacent to the presentairport and would soon request the state gov-ernment for this land. When the land is allotted,it will be possible to build a parallel runwaywhich will truly allow simultaneous operation.Of the 1,200 acres, 500 acres belong to theGovernment of West Bengal and the balanceland will have to be acquired. In any case,Kolkata airport will reach saturation by 2020.

M L Lehkra, Regional Executive Director,Kolkata Airport, mentioned the expansion andmodernisation of the Air Traffic Control (ATC) atthe airport. There was a proposed that the ATC atKolkata needed to be upgraded along with theairport modernisation project. But for variousreasons it did not happen as the size and scale ofthe ATC modernisation entailed high investment.It was decided to postpone the plans. Now, anupgrade of a few crucial elements of ATC hasbeen planned.

The new automation of ATC at Kolkata willenable the airport to handle more than 40 aircraftmovements an hour. The system once operationalfrom August-September 2012 will be even newerthan what is available in Delhi. There are nearly700 aircraft overflying Kolkata and the airporthandles 300 aircraft movements per day whichbesides scheduled carriers also include defenceand general aviation. As per International CivilAviation Organisation (ICAO), Kolkata, in termsof airspace management is among the first fivebusiest sectors globally.


AAI SPECIAL

Airport DirectorDr B P Sharma

pointed out thatthe Kolkata

airportmodernisationproject and the

associatedrunway extensionwas a prestigious

job for the AAI

TOWARDS DEVELOPMENT:Work in progress at Kolkataairport; a view from the air-side.

AAI

ASSAMThe largest state in the North-Eastern region ofthe country, Assam has six airports operatingat capital Guwahati, Dibrugarh, Jorhat, NorthLakhimpur, Silchar and Tezpur.

Guwahati: Guwahati international airportis the busiest and largest airport in this region.It is suitable for wide-bodied aircraft like A330or B747. This is the only airport in this regionwhich has permission to operate in the night.The apron is wide enough to accommodatefive A320s at one time, and the terminal build-ing is huge with a capacity to handle 790 pas-sengers during peak hours. One internationalflight of Air India leaves for Bangkok everyweek from here.

Dibrugarh: Aircraft up to A320s can beoperated from Dibrugarh airport. Night oper-ation is not allowed at this airport, and 28weekly flights leave for Guwahati and Kolkata.Apron can handle five aircrafts at a time andterminal is capable of managing 600 passen-gers during peak hours. A new control towercum technical block is being planned.

Jorhat: Jorhat airport supports aircraft upto A320s. Eight weekly flights leave from hereto Guwahati and Kolkata. The apron canaccommodate two A320s at one time, and theterminal building has a capacity to handle 120passengers during peak hours.

North Lakhimpur (Lilabari): Only twoweekly flights leave from here to Guwahatiand Dibrugarh. Lilabari airport is suitable foroperation of aircraft up to A320s but AllianceAir, the only operator at this airport, justoperates ATR42 flights from here. Apron canpark two aircraft at a time and terminal build-

ing can accommodate 300 passengers duringpeak hours.

Silchar: This airport is also suitable foroperation of A320s; however, only ATR72 air-craft are operated by different airlines atSilchar. 32 weekly flights leave from here fordifferent destinations: Guwahati, Imphal,Agartala and Kolkata. Apron can park fouraircraft and terminal building can accommo-date 300 passengers during peak hours.



BOOST FOR THENORTH-EASTAS PART OF ITS DEVELOPMENT PROGRAMME,AIRPORT'S AUTHORITY OF INDIA HAS FOCUSSED ONTHE CONNECTIVITY IN THE NORTH-EAST. A BRIEF LOOKAT THE CURRENT STATUS OF THE AIRPORTS IN THEREGION.

EASTERN CONNECTION: Pakyong Airport in East Sikkim, that willbe completed in June 2012, will be a marvel of engineering andone of the picturesque airports of the country. The airport hasbeen designed in such a way that there is minimum damage tothe environment.

Dibrugarh Airport

Imphal Airport

Tezpur: This civil enclave airport can han-dle operation of aircraft up to A320 or B738.Alliance Air operates just three weekly air-crafts from here for the destinations: Kolkataand Silchar. Apron can accommodate three air-craft at one time, and terminal building canhandle 315 passengers during peak hours.

MANIPURTulihal airport is the only airport in the capital

city of the state: Imphal. A320s can be operat-ed from this airport. Night landing facility isavailable, but operation in night is not permit-ted. Four aircraft can be accommodated in theapron at one time and terminal building iscapable of handling 400 passengers duringpeak hours. Expansion of apron to park twomore aircraft is under process.

MEGHALAYAEven in Meghalaya, there is only one operatingairport in the state capital: Shillong. This air-port is suitable for operation of ATR72, and theonly operating airline, Alliance Air operatesonly two weekly flights for Kolkata. Apron hasa parking capacity of two aircraft and terminalbuilding has room for 200 passengers duringpeak hours. A new terminal building andspace for car parking is almost complete buthasn't started operating so far. Construction ofnew control tower cum technical block isplanned. Extension of runway to 2,286 metrein South-West direction is also in the pipeline.

MIZORAMLengpui airport is at a 40-km distance from thestate capital, Aizwal. Again, this small statehas only one airport and it can support opera-tion of aircraft up to A320s. About 29 domesticweekly flights are operated by different air-lines for Imphal, Guwahati and Kolkata.Apron has parking space for three aircraft, andterminal building is good enough to handle140 passengers during peak time. Installationof a new ILS (instrument landing system) isalready complete, but it has not started itsoperation yet. Construction of cargo complexand isolation bay is being planned.

NAGALANDAgain a state with only one operating airport.Dimapur airport is situated at a distance of 70km from the state capital: Kohima. Alliance Airand Indian Airlines operate 15 flights in a weekfor Imphal, Guwahati and Kolkata. Suitable foraircraft up to A320s, the airport has an apronwith parking capacity of two aircraft. The ter-minal building has a capacity to accommodate404 passengers during peak hours.

TRIPURAAgartala airport, in the capital of the state, isthe second busiest airport in this region. Theairport is suitable for operation of aircrafts upto A320s and has 12 daily flights on an aver-age. The apron is suitable for parking sevenflights at one time and the terminal building isbig enough to handle 600 passengers duringpeak hours. The work under process are mod-ification of fire station and construction of newcontrol tower. Acquisition of land for widen-ing and development of runway strip frompresent 75 metre to 150 metre is in the plan-ning stage.


Lengpui airportis at a 40-kmdistance from

the state capital,Aizwal. Again,

this small statehas only one

airport and it cansupport

operation ofaircraft up to

A320s.

AAI SPECIAL

Lengpui Airport

Shillong Airport

JAMMU AND KASHMIRThe valley has three airports functioningamidst misty winters: Srinagar, Leh andJammu.

Srinagar (CE): Srinagar InternationalAirport is suitable for A320, B767 and B777operations. The apron can accommodate fouraircraft at a time while the terminal can han-dle up to 930 passengers during peak hours:450 flights in international and 480 flights indomestic.

Jammu (CE): Aircraft up to A320s can belanded and take off from Jammu Airport. Theapron can accommodate four aircraft at onetime. The terminal can handle up to 364 pas-sengers during peak time.

Leh (CE): This airport is suitable for oper-ation of aircraft up to A320s. The terminal canhandle up to 140 passengers during peak time.The apron can accommodate two aircraft atone time.

HIMACHAL PRADESHThere are two airports operating in this beau-tiful state of India. Tourists who are fond ofmountains and valleys frequently visit thisstate. Tibetan exiles, including Dalai Lama,have found there new home in Dharmashaladistrict of Himachal Pradesh.

Shimla: Operation of ATR42 aircraft ispossible on this airport. Apron can handleonly one aircraft at one time and terminal issuitable for maximum 72 passengers duringpeak hours.

Kullu: This airport is suitable for opera-tion of ATR42 aircraft. Apron can handle twoaircraft at one time and terminal is suitable formaximum 167 passengers during peak hours.Kingfisher and Air India operate ten weeklyflights to Delhi.

PUNJABThere are three active airports in the state

including one with international operations.Amritsar: It is the second largest

International airport in northern region and isapt for operation of wide-bodied aircraft suchas A340s or B777s. It is equipped with largeapron that can accommodate fourteen aircraftat one time.

Ludhiana: Ludhiana airport can operateATR42 aircraft. Apron can handle only oneaircraft at one time and terminal is suitable formaximum 50 passengers during peak hours.

Pathankot: B737 aircraft can land on andtake off from this airport. Apron can handlethree aircraft at one time and terminal is suit-able for maximum 220 passengers duringpeak hours.

J&K has threeairports

functioningamidst misty

winters:Srinagar, Lehand Jammu



MOVENORTHWARDKEEPING THE SENSITIVE NATURE OF THEREGION IN MIND, SECURITY HAS BEEN OFPARAMOUNT IMPORTANCE IN JAMMU ANDKASHMIR. IN THE OTHER STATES TOO, AAIHAS BEEN CONCENTRATING ON BOOSTINGDEVELOPMENT. A BRIEF LOOK AT THEREGION.

Dehradun Airport

Srinagar Airport

RAJASTHANThere are four airports in the state of palacesand forts. Being a state that truly depicts thestories of Rajputs and gallant reigns, it hasalways made tourists inquisitive.

Jaipur: Jaipur international airport canoperate aircraft up to A310s. There are twoterminals which can handle 1120 passengersduring peak hours: 900 in international and224 in domestic.

Jaisalmer: Jaisalmer airport is suitable foroperation of aircraft up to A320s. Apron canhandle three aircraft at one time and terminalis suitable for 21 passengers during peakhours.

Jodhpur: Operation of aircraft up toA320s can be handled by Jodhpur airport. Theterminal can handle up to 215 passengersduring peak time.

Udaipur: Udaipur airport can handleoperation of aircraft up to A321s. Terminal issuitable for maximum 676 passengers duringpeak hours.

UTTAR PRADESHThere are seven airports in the state of UttarPradesh.

Agra: Agra airport is apt for operation ofaircraft up to A320s. The terminal can handleup to 270 passengers during peak time.

Allahabad: Operation of aircraft up toA320s can be performed at Allahabad. Theterminal can handle up to 42 passengers dur-ing peak time.

Gorakhpur: Gorakhpur airport is wideand strong enough to handle the operation ofaircraft up to A320s. The terminal can handleup to 20 passengers during peak time.

Kanpur (Civil): Kanpur civil airport canhandle the operation of aircraft up to C 90s.The terminal can manage up to 26 passengersduring peak time. The apron can accommo-date only three aircraft at one time.

Kanpur (Chakeri): Kanpur Chakeri air-port can manage operation of aircraft up toA320s. The terminal can handle up to 33 pas-sengers during peak time.

Lucknow: Aircraft up to A310s can behandled by Lucknow airport. It is equippedwith large apron that can accommodate 26aircraft at one time; new terminal, which isnot operational so far, has an apron of 13 air-craft parking capacity.

Varanasi: Aircraft up to A321s can bemanaged by airport at this pilgrimage.Terminal is suitable for maximum 1100 pas-sengers during peak hours, after recentexpansion.

UTTARAKHANDThere are two airports in the state ofUttarakhand: Dehradun and Pantnagar.Mussourie is one of the places which are verypopular with wanderers in India.

Dehradun: This airport can run aircraftup to A320s but presently operating withATR-72. The terminal can handle up to 233passengers during peak time. The apron canaccommodate only two aircraft at one time.

The new passenger terminal is wingstyled roof made primarily from steel Kalzip.The roof has translucent skylight set intomore than five per cent of area to provide nat-ural light to the main concourse.

Pantnagar: This airport is suitable foroperation of ATR42 aircraft. Apron can han-dle only one aircraft at one time and terminalis suitable for maximum 44 passengers dur-ing peak hours.


Agra airport isapt for operationof aircraft up to

A320s. Theterminal can

handle up to 270passengers time

AAI SPECIAL

Udaipur Airport

Amritsar Airport

Chaudhary Charan Singh International Airport, Lucknow


ANDAMAN AND NICOBARISLANDSThere is only one airport in this group ofislands: Port Blair international airport. Theofficial name is Veer Savarkar InternationalAirport. Airport’s runway can handle opera-tion of aircraft up to A310 or B757. Apron is

big enough to park eight aircraft at one timeand terminal building has good space for 270passengers. New terminal complex and acargo complex are under planning stage.

BIHARThere are two functional airports in the state


EAST ALSO RISESTHE AIRPORTS AUTHORITY OF INDIA HAS DRAWN UP EXTENSIVE DEVELOPMENT PLANS FORTHE AIRPORTS IN THE EASTERN REGION OF THE COUNTRY. A BRIEF OUTLINE OF THEVENTURES IN THE AIRPORTS.

Bhubaneswar Airport

Raipur Airport

Patna Airport

of Bihar. The status is as follows:Patna: Official name of this custom airport

is Loknayak Jaya Prakash Narayan Airport.The airport’s runway is wide enough to sup-port aircraft up to A320s. The apron can parkfive aircraft at one time. The terminal buildingis big enough to house 200 passengers duringpeak hours. In addition, the integrated inter-national side is also capable of handling 100fliers. Resurfacing of the apron and the adja-cent pavement will be starting soon.Modification and the expansion of the termi-nal building are in the planning stage.

Gaya: This airport can support operationof aircraft up to A321. Apron can park two air-craft at one time. The terminal building isdivided into domestic side and internationalside which can accommodate up to 100 and

400 passengers respectively during peakhours. Acquisition of land for extension ofrunway is being planned by the authority.

CHHATTISGARHThis state also has only one airport in its capitalRaipur. Raipur Airport’s runway can handleoperation of aircraft up to A321. Apron canpark three aircraft at one time and terminalbuilding has good space for 400 passengers.New international terminal, which will haveenough space to accommodate 800 passengers,is in the last phase of construction. TheAuthority has been planning to acquire moreland for expansion of runway and constructionof new control tower and fire station.

JHARKHANDAgain, Jharkhand is also a state with only oneairport in its capital: Ranchi. Its runway canhandle operation of aircraft up to A321. Aproncan park two aircraft at one time and terminalbuilding has space for 130 passengers.Resurfacing of the apron and the adjacentpavement is in its last stage. Also, strengthen-ing and expansion of apron is almost com-plete.

ODISHABiju Patnaik Airport is at the capital city,Bhubaneswar. Huge construction work is inprogress at this airport. A new integrated termi-nal is being constructed which will increase itscapacity to handle more than 1,300 passengersfrom present 350. The runways are capable inoperation of aircraft up to AB767-300. The newapron, which is under construction, would beable to park six aircraft at one time; old apronhas space for two parking. Also, new air trafficcontrol tower (ATC)-cum-technical block hasbeen proposed, and further expansion of theapron has already been approved.

WEST BENGALThe state of West Bengal has two functionalairports in AAI’s list. Their status is as follows:

Kolkata International Airport: Officiallyknown as Netaji Subhash Chandra BoseInternational Airport, it is suitable for opera-tion of wide-bodied aircrafts such as A340sand B747. It has a huge apron which is capableof parking 35 aircraft at one time. The peakhour capacity of the terminal building is 1864,1240 in the domestic side and 640 in the inter-national side. It has a big car-parking area,which can accommodate 2500 cars. The trafficis very high with 692 domestic and 100 inter-national flights a week. (Please see the detailedstory on modernisation of Kolkata airport on pages38, 39 and 40)

Cooch Behar: Aircraft up to ATR42s can beoperated at this airport. Apron can accommo-date two aircraft at one time and terminal build-ing is suitable for at least a 100 passengers.


AAI SPECIAL

Biju PatnaikAirport is in the

capital city,Bhubaneswar.

Hugeconstruction

work is inprogress at thisairport. A new

integratedterminal is being

constructedwhich will

increase itscapacity to

handle morethan 1,300

passengers frompresent 350

Gaya Airport

Ranchi Airport

Port Blair Airport

TETSUROYOSHIDA/FLICKR


ANDHRA PRADESHThis state has six functional airports.Begumpet Airport in Hyderabad,Rajahmundry Airport, Tirupati Airport andVijayawada Airport are managed by AirportsAuthority of India. Vishakhapatnam Airportis managed by Indian Navy and HyderabadInternational Airport is managed by GMRHyderabad International Airport Limited(GHIAL). Following is the current status:

Hyderabad (Begumpet) Airport: This air-port is suitable for operation of aircraft up toB747. Apron has enough space to park 13 air-craft at one time. It has car-parking space for400 cars.

Rajahmundry Airport: This airport cansupport operation of aircraft up to ATR72.Kingfisher and Jet Airways operate 14 flightsfor Hyderabad every week. Apron has spacefor parking two ATR72 at one time. With thefunctioning of the new terminal building atthe airport, the peak hour capacity willincrease to 336 from current capacity of 120.

Tirupati: Kingfisher, Jet Airways and Air

India operate a number of flights every week.The runways can handle operation of aircraftup to A321s. Apron can park two A321s andone ATR72 at one time. The current terminalbuilding is suitable for 250 passengers at onetime, the new integrated one, which is underconstruction, would have a peak hour capaci-ty of 700 passengers.

Vijayawada: Kingfisher operates 14 week-ly flights for the destinations: Hyderabad andBengaluru. Vijayawada airport can supportoperation of aircraft up to B737. The old aproncan park two A320s at one time and the newapron can accommodate five A321s. Peak hourcapacity of the terminal building is 75 passen-gers.

Vishakhapatnam: Indian Navy operatesand maintains this civil enclave airport. Therunways are apt for operation of aircraft up toA330s. The existing apron can park threeB737s, and the new apron, which is not func-tional so far, has eight stands for parking theaircrafts. The peak hour capacity is 125 pas-sengers in the old terminal building.

TAMIL NADUThere are six airports in this state. The statusis as follows:

Chennai: Flights leave for 21 internationaland 24 domestic destinations fromInternational Airport at Chennai. Apron hastotal parking space of 66 aircraft on domesticside and 10 on international side. The peakhour capacity to handle customers is 96 inKamaraj Domestic Terminal, up to 2300 inAnna International Terminal and 3,300 in inte-grated new domestic terminal. (Please see thedetailed story on modernisation of Chennai airporton pages 34, 35 and 36)

Coimbatore: This is a customs airport and


Kingfisher, JetAirways and AirIndia operate a

number offlights to Tirupatievery week. The

runways canhandle operationof aircraft up to

A321s

SOUTHERNSPLENDOURTHE SOUTH HAS SOME OF THE HOTTEST DESTINATIONSIN THE COUNTRY AND WITH THE FOCUS ONCONNECTIVITY, THE AIRPORTS HAVE BECOME THEMOST SOUGHT-AFTER ONES. A LOOK AT THE LATESTDEVELOPMENTS IN THE REGION.

Calicut Airport

is suitable for operation of aircraft up to A321.International flights leave for two destinationsfrom this airport: Sharjah and Singapore.Apron can park three aircraft on domestic andinternational side each. The peak hour capaci-ty at the existing domestic terminal is 240 pas-sengers.

Madurai: The new terminal building forinternational operation can accommodate 700passengers during peak hours. Constructionof a new ATC building and fire station hasbeen planned. The runway at this airport iscapable of operation of aircraft up to A321s.

Salem: In the major development works,extension of runway and allied facilities hasbeen planned. The present runway can han-dle operation of aircraft up to ATR72s.Kingfisher is the only airline providing serv-ices at this airport for the only destination:Chennai.

Tiruchirapalli: This is a custom airport.Several airlines operate 24 domestic flights forthe destination: Chennai and Trivandrum. Atthis airport, 47 international flights are alsobeing operated for the destinations: Colombo,Dubai, Kuala Lumpur, Singapore and AbuDhabi.

Tuticorin: Kingfisher operates sevenweekly flights from this airport to Chennai.The airport is suitable for operation of aircraftup to ATR72-500s. Apron can park two aircraftat one time and terminal building has a maxi-mum capability of accommodating 83 passen-gers.

Puducherry (Union Territory): This air-port is suitable for operation of aircraft up toATR-72-500s. The new terminal building hasjust been completed, which can accommodate150 passengers during peak hours.

KARNATAKAThere are four airports in the state ofKarnataka: Bengaluru International Airport,Bengaluru CE, Hubli Airport and MangaloreCustoms Airport. Out of these four,Bengaluru International Airport is managedby BIAL (Bengaluru International AirportAuthority Limited), Bengaluru CE Airport isunder HAL (Hindustan Aeronautics Limited)administration, and airports at Hubli andMangalore are run by Airports Authority ofIndia.

Hubli: Runways at this airport can handleoperation of aircraft up to ATR42s. Kingfisheroperates 14 flights every week from here forBengaluru and Mumbai. The apron has capac-ity to park five aircraft at one time.

The terminal building can handle traffic of60 passengers during peak hours. Installationof ILS (instrument landing system) is beingplanned.

Mangalore: This is a customs airport. Therunway can handle operation of aircraft up toA321. There is parking space for four aircraftin the old apron and six in the new one.

The old terminal building can handle 300passengers during peak hours, and the newintegrated terminal has a capacity to handle731 passengers during peak hours.

KERALAThis state is a paradise for nature lovers. Theflora and fauna of this state lures thousands oftourists every month. There are three airportsin this state; two of them are managed by AAIand one by CIAL (Cochin InternationalAirport Limited).

Kozhikode: Calicut International Airportis suitable for operation of aircraft up to B747.Apron has stand for parking nine aircraft atone time. The terminal building is big enoughto accommodate 1604 passengers during peakhours. It has a big car parking space which caneasily accommodate 200 cars at one time.

Thiruvananthapuram: The internationalairport at Thiruvananthapuram has goneunder major transformation in the recent past.

AAI has equipped this airport with a newinternational terminal building complex, eightparking stands for the aircraft (total parkingstands on apron increased to 20 along withold 12 stands), car parking on both sides andparallel taxiway on Chakai Canal side. Therunway of the airport can handle operation ofaircraft up to B747.

LAKSHADWEEP ISLANDSThis group of islands has one airport namelyAgatti Airport. It has direct flights fromErnakulam (Cochin). The runway at this air-port is suitable for operation of ATR42 aircraft.Parking of only one ATR42 aircraft is possibleon the apron. The terminal building can han-dle 25 passengers during peak hours.


There are fourairports in the

state ofKarnataka:Bengaluru

InternationalAirport,

Bengaluru CE,Hubli Airport and

MangaloreCustoms Airport

AAI SPECIAL

Trivandrum AirportCoimbatore Airport

Mangalore AirportMadurai Airport


Diu: This airport can handle operation of air-craft up to ATR-72-500s. Jet Airways is theonly airline which operates six weekly flightsfrom this airport for the Mumbai viaPorbandar. Terminal building at the airporthas capacity to accommodate 30 passengersduring peak hours. The apron can park twoATR-72-500s at one time.

Goa (C.E.): Runways at Goa InternationalAirport are suitable for wide-bodied aircraftlike A340-600s. Several airlines operate 18 inter-national flights and 224 domestic flights at thisairport. Apron has big parking space foraccommodating 11 aircraft at one time. Thepresent terminal building has capacity to house778 passengers during peak hours.Construction of new building is going on; it willbe able to accommodate 2,000 passengers on thedomestic side and 480 passengers on the inter-national.

GUJARAT There are nine operational airports in the stateof Gujarat.

Ahmedabad: Ahmedabad InternationalAirport is officially known as Sardar VallabhBhai Patel International Airport. Runways atthis airport are suitable for wide-bodied air-craft like A340-600s or B747-400s. 250 domes-tic and 48 international flights are operated atthis airport by different service providers. Theexisting apron can park six aircraft at onetime; the new under-construction airport, infront of the under-construction internationalterminal building, will be able to park sixmore aircraft.

Bhavnagar: Bhavnagar airport can handleoperation of aircraft up to A320s. Jet Airwaysand Kingfisher operate 14 flights for Mumbaievery week from here. The apron can park twoaircraft at one time, and the terminal buildingcan house 110 passengers during peak hours.

Bhuj: This is a civil enclave airport. Theoperation of aircraft up to A320s is possible atthis airport. Jet Airways and Kingfisher oper-ate 14 flights for Mumbai every week fromhere. The apron can park two B737-800 aircraftat one time, and the terminal building canhouse 350 passengers during peak hours.

Jamnagar: This is also a civil enclave airport.The operation of aircraft up to A320s is possibleat this airport. Air India operates seven flightsfor Mumbai every week from here. The aproncan park two B737-700 aircraft at one time, andthe terminal building can house 150 passengersduring peak hours. It has a car-parking space for60 cars. Extension of apron and expansion of ter-minal building are being planned.

Kandla: This airport can handle operationof aircraft up to ATR-72s. Kingfisher operatesseven flights for Mumbai every week fromhere. The apron can park two ATR-72 aircraftat one time, and the terminal building canhouse 81 passengers during peak hours.

Extension of runway for operation of A320 air-craft and construction of new terminal build-ing complex are in the planning stage.

Porbandar: The runways can handle oper-ation of aircraft up to ATR72-500s. Jet Airwaysoperates six flights for Mumbai every weekfrom here. Apron can park two ATR72-500 air-craft at one time. The terminal building is suitable for 318 passengers during peak hours.The tender for new air traffic control towercum technical block has been released.

Rajkot: This airport is suitable for operationof aircraft up to A320s. Jet Airways and Air Indiaoperate 20 flights for Mumbai every week from


THE WESTRACES ONTHE WESTERN REGION HAS SEEN SOME OF THEFASTEST FOOTPRINTS AMONG AIRPORTS. A BRIEF ONTHE AIRPORTS AUTHORITY’S PLANS FOR THE REGION.

Indore Airport

here. The apron can park one B737-400 and oneATR72 at one time. The terminal building canaccommodate 140 passengers during peak hours.

Surat: Even called Dumas Airport, it issuitable for operation of aircraft up to A320s.Alliance Air operates six flights every weekfrom here for the destination: Delhi. Theapron can park one B737-400 and one ATR72at one time. The terminal building can accom-modate 140 passengers during peak hours.

Vadodara: This airport is suitable for oper-ation of aircraft up to A320s. Several airlinesoperate 49 flights for Mumbai and Delhi everyweek from here. The apron can park six A320sand one ATR72 at one time. The terminalbuilding can accommodate 330 passengers inold side and 720 passengers on the integratedside, which has just started its operation.Parking space for 200 cars is available here.

MADHYA PRADESH There are three airports in the state of MadhyaPradesh.

Bhopal: It is officially known as Raja BhojAirport. The runway of this airport is suitablefor operation of aircraft up to A321s. The fre-quency of this airport is 36 flights a week. The

old apron can park three B737-800s and oneATR72 at one time. The recently-constructedapron can park 10 B737-800s or A321s.

Indore: Official name of this airport isDevi Ahilya Bai Holkar Airport. The runwayof this airport is suitable for operation of air-craft up to A321s. The frequency of this air-port is 161 departures a week. The old aproncan park three B738s and one ATR 72-500 atone time. The recently constructed apron canpark four A321s and four ATR 72-500s.

Jabalpur: This airport is suitable for opera-tion of aircraft up to A320s. There are 11 weeklydepartures operated from here for the destina-tions: Delhi and Gwalior. The parking space issufficient to house two ATR-72-500s at one time.

MAHARASHTRAThere are eleven airports in the state ofMaharashtra.

Akola: This airport is suitable for opera-tion of aircraft up to ATR-42-320s. The apronhas parking space for three aircraft: twoATR72 and one C90. Terminal building canhouse 25 passengers during peak hours. Theongoing work is modification of existing ter-minal building.

Aurangabad: 42 weekly departures areoperated by different service providers fromAurangabad Airport to different destinations:Delhi and Mumbai. The runways can handleoperation of aircraft up to ATR42-320s. Thenew terminal building is capable of housing800 passengers and old one has the peak hourcapacity of 200 passengers.

Gondia: This airport has no scheduledoperations. Runways at this airport are suitablefor operation of aircraft up to A320s. Apron hasspace for parking seven aircraft at one time.

Pune: Pune airport which is a Civil Enclavewith ATC and operational area under the con-trol of IAF, has registered phenomenal growthover the years. It is the eleventh busiest airportin India. The number of aircraft, passengers andcargo handled during 2004-05 were 7745, 6.01lakh and 8791 metric tonnes, respectively. In2010-11, it rose to 27,000, 28 lakhs and 27000MT, respectively. The growth has been almostfour times during the last six years.

The other airports in Maharashtra are asfollows:

Mumbai International Airport under PPPmode with Mumbai International Airport Ltd,Kolhapur (leased for 15 years by StateGovernment [SG] to AAI), Latur (leased bySG to Reliance Airport Developers), MumbaiJuhu - Historic old airport of the city underimprovement and expansion with AAI,Nagpur - the AAI airport under agreementwith MIPL, Nanded - SG to Reliance AirportDevelopers, Sholapur - leased for 15 years byAAI from SG and Pune - Pune’s Lohegaon air-port is an IAF airport with Civil Enclave oper-ated by AAI.


AAI SPECIAL

42 weeklydepartures are

operated bydifferent serviceproviders from

AurangabadAirport todifferent

destinations:Delhi andMumbai

Ahmedabad Airport

Bhopal Airport

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2INNOVATION

India is the ninth largest aviation marketin the world. According to the AirportsAuthority of India (AAI) estimates, inter-national aircraft movements will increaseby eight per cent per year for 2010 to

2013, and seven per cent per year for 2014-2023. Domestic aircraft movements willincrease by 3.4 per cent per year and 8 per centper year over these same time periods.International passenger volumes will grow by10 per cent per year and nine per cent per yearduring these time frames. Domestic passengervolume will decline by 0.3 per cent per yearfrom 2010 to 2013, grow at an 8 per cent annu-al rate for 2014 - 2018, and grow at an annualrate of 10 per cent for 2019 - 2023. With pas-senger growth projected at 15 per cent peryear in India, the gridlock that is alreadyoccurring in the operation will have an evenlarger impact on passengers, airports, airlines,and the overall Indian economy.

Air traffic in the recent past at Indian airportsand in the airspace has grown exponentially andis likely to grow further in the immediate future.At major airports, enroute and the terminal air-space, traffic growth has resulted in congestiondelays leading to increase in fuel burn and envi-ronmental impact. The growth-induced trafficcomplexities would also adversely affect safety.Hence, a system called Air Traffic FlowManagement is considered necessary to optimisethe capacity versus demand, both strategicallyand dynamically, by integrating various opera-tional constraints and weather parameters.Mitigating measures and alternate actions toavoid congestion and delay, both in terminal andenroute airspace and airports, are required to beachieved through a collaborative decision-mak-ing process involving all stakeholders.

With the strong growth in the internationaland domestic aviation markets, the need for C-ATFM is felt on a daily basis. Passenger delaysand unnecessary holding in the airline opera-tion lead to dissatisfaction and excessive costand an unnecessary impact on the environ-ment, both in time and cost efficiency and alarge carbon footprint. India needs to satisfythis increased demand while operating underdifficult weather constraints (e.g., fog, turbu-

lence and convective weather associated withmonsoons and the occasional cyclonic storms),and living within the national security con-straints that result from the extensive airspaceused exclusively by the Indian military.

Today, the primary method for long-termbalancing demand with system capacity is torestrict demand by allocating a fixed numberof arrival/departure slots to scheduled aircraftoperating into and out of India’s major, con-gested airports. Slot allocations are made on aquarterly basis, with the numbers adjusted forseasonal weather and traffic conditions. Theslots equitably distribute the restricted airportand airspace capacity to aircraft operators.Short-term (e.g., during a flight day) balanc-ing is accomplished by air traffic control(ATC) imposing delays on aircraft and air-lines’ decisions to divert to alternate airportsduring periods of weather-restricted capacity.Weather information and airport capacityinformation are not made available to ATCand flights through an integrated system.Each party makes independent decisionsabout how to restrict and manage flights dur-ing problem periods. This often results in lessthan optimal utilisation of available airspace,airports, and aircraft resources.

These bottlenecks will be eliminatedthrough the implementation of C-ATFM forthe entire system in India. The proposed C-ATFM system will balance demand and capac-ity in Indian airspace and airports for mostefficient operations that will include bothinternational and domestic traffic.

The required C-ATFM system will balancedemand and capacity in Indian airspace andcoordination with adjacent Air NavigationService Providers (ANSP) from countries.Integration with systems of adjacent states willfurther enhance the regional C-ATFM and willallow a better flow of the departure aircraft intothe East-West and West-East traffic flows over-head of India. The C-ATFM system will balancedemand and capacity in Indian airspace and air-ports for most efficient operations that include-both international and domestic traffic.

Air Traffic Flow Management (ATFM) isstrongly advocated by ICAO in its The Global

COMING: BETTER AIR TRAFFICFLOW MANAGEMENTAS AIRCRAFT NUMBERS AND PASSENGER VOLUMES GROW, THE AIRPORTS AUTHORITY OFINDIA HAS CHALKED OUT PLANS TO USHER IN AN AIR TRAFFIC FLOW MANAGEMENT SYSTEMTHAT WILL REDUCE CONGESTION DELAYS AND A REDUCTION IN THE CARBON FOOTPRINTFROM AIRCRAFT EXHAUSTS.


“AAI has takenmany strides tomodernise its

CNS-ATM facili-ties, where AAI

has drawn up theMaster Plan forimplementationof FANS (FutureAir NavigationSystem). The

implementationof the CNS-ATMMaster Plan will

put Indiaamongst theelite group ofcountries that

have an efficientATM System ”

V P Agrawal,Chairman, AAI

Air Navigation Plan Doc 9750 developed by theInternational Civil Aviation Organisation(ICAO). Global Plan Initiative (GPI-6) describesthe scope of Air Traffic Flow Management asthe implementation of strategic, tactical andpre-tactical measures aimed at organising andhandling traffic flows in such a way that thetotality of the traffic handled at any given timeor in any given airspace or aerodrome is com-patible with the capacity of the ATM system.ICAO has introduced many standards and rec-ommended practices in Annex 11, Doc 4444 andbrought out broad guidelines to states as towhen and how to establish ATFM.

The Ajay Prasad Committee, constitutedfor formulating next-generation futuristic AirNavigation Services Master Plan, has also rec-ommended to implement AFTM system expe-ditiously preferably in “the Near-Term-Immediate Plan”. AAI, in its strategicCNS/ATM (Communications, Navigation,Surveillance/Air Traffic Management) planaccorded high priority for developing a com-prehensive Air Traffic Flow Management andaccordingly granted in-principle approval forestablishment of C-ATFM in India. ATFM sys-tem being new and complex for the Indianenvironment, AAI considered it prudent tohave the technical support from the FederalAviation Administration, USA.

ATFM PLANPhase 1: The C-ATFM baseline with near-termsolution would be in place by the end of 2013.This would provide AAI and aircraft operatorusers with significant capabilities to performstrategic, pre-tactical, and tactical ATFM andCDM associated with sectors demand of entireIndian airspace and arrivals into all airportsfrom grade 1 to 5 in two stages.With access toaircraft operator schedule data via the OfficialAirline Guide (OAG) and/or directly from theaircraft operators and operational flight datafrom AAI’s ATC automation system, strategicand pre-tactical demand predictions are pro-vided to AAI to determine periods of excessdemand compared to the available capacity. C-ATFM for ANSP provides capabilities tomodel and implement Traffic ManagementInitiatives (TMIs) to smooth the demand to theavailable capacity via Ground DelayProgrammes. TMIs are shared with aircraftoperators as an integral part of the CDM(Collaborative Decision Making). process. Forperiods of significant, unexpected capacityreductions, Ground Stop TMIs can also bemodelled and implemented. Once a TMI isimplemented, C-ATFM for ANSP will provideupdated demand predictions to monitor TMIperformance. Updated predictions are drivenby tactical flight data updates from AAI aswell as flight specific updates provided by air-craft operators. Aircraft operators are provid-ed capabilities to perform schedule manage-

ment adjustments (e.g., slot substitutions) tooptimise their operations consistent with theavailable capacity determined by AAI and theconstraints of the TMI. C-ATFM for ANSPprovides a web-based interface for aircraftoperators in addition to the EnhancedSubstitution Module interface for advancedscheduled management functions. C-ATFMfor ANSP provides real-time and post-opera-tional reports to help AAI and their stakehold-ers evaluate system performance and lessonslearned. In addition to the operational capabil-ities, C-ATFM for ANSP provides SystemAdministration and Adaptation Managementfunctions to monitor and control the opera-tional system and support the preparation andvalidation of system reference data.

Nationwide ATFM system covering all theairports and an expanded use of C-ATFM forANSP to support ATFM/CDM for airspace pro-grammes and arrivals into airports throughoutthe country would be fully operational by 2013.Some key functional enhancements for includ-ing departure programmes of additional airportand airspace flow programmes to complementthe proposed airport arrival programmes alsowould be in place in Phase 1. Future functional-ity will be considered by AAI by customerneeds and advances in ATFM.

Phase 2: The specific functionality will bedefined in collaboration with the internationalANSP necessary to support the internationalATFM integration identified by AAI. Theseintegrations can be thought in several ways. Incase an adjacent FIR of another country is notcontrolled by an ATFM system, this FIR can beincluded in AAI’s C-ATFM system. In the caseadjacent FIRs or countries would have theirown ATFM system, a system to system integra-tion can be provided to improve efficienciesacross both ATFM systems. There is no specifictime line planned to introduce this phase.

Development of ATFM capability in Indiawill be consistent with guidance issued by theInternational Civil Aviation Organisation(ICAO) in the document entitled Demand andCapacity Balancing. The total aircraft move-ment (Arrivals and Departures) in Indian air-ports per day is around 5,200. The ATFM serv-ice must take measures to ensure a balanceexists between air traffic demand and thedeclared capacities and help ATC use, to themaximum extent possible, its capacity.

A key part of the future ATFM concept isCDM which helps ATC achieve its goal ofmanaging the ATC system and the operatorsachieve their goal of managing their sched-ules. The result of CDM is a shared situation-al awareness and collaborative resolutions for“win-win” solutions for both ATC and stake-holders. Collaboration leads to enhancedoptions, resulting in improved decision-mak-ing, stakeholder acceptance and support, andincrease service performance.


A key part of the future

ATFM concept isCDM which helps

ATC achieve itsgoal of

managing theATC system and

the operatorsachieve their

goal ofmanaging their

schedules

INNOVATION



ADS-B (Automatic DependentSurveillance System-Broadcast)system enables aircraft to transmit

critical information on thelocation, speed and altitudeto ground stations connectedto air-traffic centres. The sys-tem uses the GlobalNavigation Satellite System(GNSS) to determine theposition of the aircraft andbroadcast the data in realtime enabling the GroundAutomation Systems and airtraffic controllers to benefitfrom highly accurate positionof the aircraft. This leads tosafer operations andimproved efficiencies of theair-traffic control systems infuture.

It helps air-traffic control know theexact position of the aircraft on the dis-play (unlike the case of procedural con-trol) allowing for reduction in separa-

tion between aircraft. This means thatmore number of aircraft can be accom-modated in the available airspace con-

tributing to capacity enhancement andreduction in delay for the aircraft andconsequently for the passengers. Thisalso substantially reduces fuel burn,

emission and noise.Unlike the case of procedural con-

trol, where the controllers have to pre-dominantly depend on voiceposition reports, ADS-B per-mits controllers to know theposition exactly on the dis-play and apply required sep-aration positively permittingenhanced safety.

Being digital technology,it does not suffer fromatmospheric attenuation andhence accuracy does notdegrade with distance andmore accurate than radar.This ensures safety of air-craft operations in all-weather conditions.

Though it requires air-borne equipage, it is rela-

tively cheaper compared to radar andprovides high-quality surveillance.However, the Directorate General ofCivil Aviation (DGCA) has been

Consistent with ICAO’s Global Plan ini-tiatives and the Indian Future AirNavigation Services Master Plan, theAirports Authority of India (AAI) hasembarked upon a number of initiatives

to improve Air Navigation Services and airportinfrastructure with the objective of enhancingsafety, efficiency and capacity of airspace and air-ports in India. One such initiative is towardsestablishing a single continuum of upper airspacewhich will facilitate uniform application of rulesand procedures.

AAI has a detailed plan to restructure theentire Indian airspace to amalgamate 11 AreaControl Centres (ACCs) into four ACCs initiallyand finally into two centres. Each FIR will haveonly one Upper ACC centre with multiple sectorsto be operated from four major cities: Delhi,

Mumbai, Kolkata and Chennai. These will be thefour main enroute centres for the provision of enroute control service. The airspace within thejurisdiction of these centres will be reorganised toestablish multiple en-route sectors of appropriatelateral jurisdiction based on the flow of traffic andcomplexities.

All the four centres will be equipped withsimilar level of ATM automation and CNS infra-structure (Air Traffic Management/Communication Navigation Surveillance). Onecentre will serve as a backup to the other centre inthe event of disaster or complete breakdown.

Enroute centres will be equipped with multi-ple numbers of controller workstations of similarconfiguration and HMI (Human MachineInterfaces) to achieve operational efficiency andbetter administrative control. Provision of appro-

LOOKING OUT FOR AIRCRAFT

MOVING TOSEAMLESS ATMTHE AAI HAS CHALKED OUT A PLAN TO RESTRUCTURE THE ENTIRE INDIAN AIRSPACE TO AMALGAMATE THE PRESENT 11 AREA CONTROL CENTRES INTO FOUR AND LATER TO ONLY TWOCENTRES. THE MOVE WILL HARMONISE UPPER AIRSPACE AND BRING ABOUT SEAMLESS AIRTRAFFIC MANAGEMENT.

TOUCHING THE SKIES: AAI hosted the seventh meeting of the South-East Asia and Bay of Bengal Sub-regional ADS-B ImplementationWorking Group at Chennai.

AAI has adetailed plan torestructure theentire Indianairspace to

amalgamate 11Area Control

Centres (ACCs)into four ACCs


INNOVATION

requested to consider mandating 1090Extended Squitter (ES) for all the air-craft flying across Indian airspace bya suitable date as concluded in theAPANPIRG (Asia Pacific AirNavigation Planning andImplementation Regional Group)meeting.

Installation of ADS-B ensures sur-veillance of remote/inhospitable areaslacking radar coverage.

Given that range is a functionradio line-of-sight and is dependenton antenna height, aircraft altitudeand terrain, ADS-B permits a maxi-mum range of more than 150 nauticalmiles.

Considering the above benefitsand the low-cost technology associat-ed with ADS-B, ICAO in APAN-PIRG/19 meeting held in September2008 has adopted a conclusion thatStates should minimise reliance uponpilot-voice position reporting for sur-veillance of aircraft and maximise theuse of ADS-B on major air routes/ter-minal areas. The Ajay PrasadCommittee has also recommended

that ADS-B be implemented to sup-plement enroute MSSR (MonopulseSecondary Surveillance Radar) initial-ly in low density traffic areas andprogressively extend to other areas.

The AAI (Airports Authority ofIndia) has embarked upon a plan foraugmentation of ANS infrastructureto provide 100 per cent surveillancecoverage over the entire continentalair space and adjacent oceanic airspace using radar and ADS-B as far aspracticable.

The AAI has taken up the projectfor implementation of tower automa-tion system at 32 airports and sixACC centres. This new automationsystem is capable of accepting, pro-cessing and displaying radar andADS-B track data wherever suchinputs are available. It has beendecided to implement ADS-B initiallyat 10 airports (Approach Stations)and six ACCs, which will provide asupplementary surveillance cover atthese airports/ACC centres and willalso serve as a backup in case of aradar failure. Since radar replacement

is on the cards at the six ACCs, thenew radars can be implemented keep-ing ADS as a back-up.

AAI has planned to implementADS-B at 14 locations ,i.e, Jaipur,Lucknow, Calicut, Agartala,Trivandrum, Ahmadabad, Guwahati,Port Blair, Nagpur, Mangalore,Coimbatore, Cochin, Varanasi andAmritsar for the purpose of supple-menting the coverage of the existingenroute MSSRs initially in the low-density traffic areas and progressive-ly to other areas.

At 10 of the 14 airports, ADS-Bwill be employed for the provision ofATC in terminal areas (where proce-dural ATC is in vogue presently)thereby reducing delay for aircraftconsiderably. The ADS-B initiativewill enable surveillance of aircrafteven at low altitudes and high-terrainareas as well.

India has planned to issue man-date of ADS-B in the entire Indian air-space and planning to operationaliseADS-B stations by December 2013 asper ICAO-APAC regional plan .

priate CNS facilities and automation supportwould be provided to support implementationof uniform ATC procedures, training, andapplication of harmonised separation stan-dards.

Sector configuration will be flexible, i.e.,dynamic for consolidation and deconsolidationof sectors based on traffic density. The entirecontrolled airspace will have overlapping sur-veillance cover through radar /ADS-B(Automatic Dependent Surveillance-Broadcast)/Multilateration combined withmatching seamless air-ground communicationto facilitate efficient air-traffic management.

Considering the complexity and magnitudeof the task of restructuring Indian airspace, AAIhas considered it appropriate to proceed in aphased manner and has taken up restructuringof Chennai FIR (Flight Information Region) asthe pilot project. The restructuring of theChennai FIR has been completed and opera-tionalised from Sepember 22, 2011. The restruc-tured FIR has one upper ACC with five sectorsto be operated from Chennai. Lateral jurisdic-tion of existing ACCs at Hyderabad, Mangaloreand Trivandrum has been re-designated aslower ACCs with revised lateral and verticaljurisdiction up to FL255. Tower and approachare operated from individual airport as perpresent lateral and vertical jurisdiction.

The highlights of the project include oper-ating multiple sectors of Air Traffic Controlfrom a single centre at Chennai covering theenroute phase of the flights, integration of vari-ous radars located at Chennai, Porur,Hyderabad, Mangalore, Bengaluru,Trivandrum, Bellary and HAL and completeATS automation with various controller toolsand remote operation of VHF from Chennai.

INTEGRATION OF RADARSIntegrating information from seven existingradars, the three additional radars and ADS-Binto the automation system, the radar picture of

Continued on Page 62

ALL CLEAR: FormerCivil Aviation MinisterVayalar Ravi overseeingoperations of the ATCunit at Chennai Airport.Also seen is AAIChairman V P Agrawal.


The Ground Based AugmentationSystem (GBAS) will augment theGlobal Positioning System (GPS) to

improve aircraft safety during airportapproaches and landings. GBAS willyield extremely high accuracy, avail-ability, and integrity necessary forCategory I, II, and III precisionapproaches.

GBAS consists of groundequipment and avionics. Theground equipment includesfour reference receivers, aGBAS ground facility, and aVHF data broadcast transmit-ter. This ground equipment iscomplemented by GBAS avion-ics installed on board the air-craft.

Signals from GPS satellitesare received by the GBAS GPSReference Receivers (fourreceivers for each GBAS) at theGBAS-equipped airport. Thereference receivers calculatetheir position using GPS.

The GPS Reference Receivers andGBAS Ground Facility work togetherto measure errors in GPS-providedposition. The GBAS Ground Facilityproduces a GBAS correction messagebased on the difference between actualand GPS-calculated position. Suitableintegrity parameters and approachpath information are included in themessage. This GBAS correction mes-sage is then sent to a VHF data broad-cast (VDB) transmitter.

The VDB broadcasts the GBAS sig-nal throughout the GBAS coveragearea to avionics in GBAS-equipped air-

craft. GBAS provides its service to alocal area (approximately a 20-30 mileradius). The signal coverage isdesigned to support the aircraft’s tran-sition from enroute airspace into andthroughout the terminal area airspace.

The GBAS equipment in the air-craft uses the corrections provided on

position, velocity and time to guide theaircraft safely to the runway.

GBAS BENEFITSGBAS provides CAT I landing minimaalternative to Instrument LandingSystem and is expected to support CATIII operations in the foreseeable future.

Designing flight procedures totransition seamlessly from RNAV andRNP (Area Navigation and RequiredNavigation Performance) to a GBASLanding System (GLS) would definite-ly improve ATM capacity and efficien-cy. GBAS would entail significant

reduction of ground infrastructure andannual maintenance costs compared tothe Instrument Landing System.

GBAS would serve all approachesto multiple runway ends within theradius of six km of the existingapproach decision heights unlike thecase of Instrument Landing System

which will serve only a singleapproach end of the runway.

While ILS requires regularflight inspections to ensure thatthe approach path is repeatableand accurate, a GLS approach doesnot change with time and hencedoes not require repeated flightinspection requirements. Thiswould reduce the cost enormously.Through a combination of RNAVand RNP concepts coupled withGLS final approach, the proce-dures can significantly reduce dis-

tance to Touch-down of everyAircraft making an approach asan example, A Quantas Boeing737 flight flying a fully automat-

ed RNP procedure to GLS transitionreported a saving of 140Kg of fuel and440Kg of CO2 for one single approach.

AAI PLANSWith an eye to the advantages, AAI hasentered into an agreement withUSTDA (US Trade and DevelopmentAgency) under the US India AviationProgram to establish a project provid-ing technical support for GBAS instal-lation and operational certification.The USTDA Grant Agreement for tech-nical assistance in the GBAS Project hasbeen signed on July 19, 2011.


GBAS FOR SAFER APPROACHES AND LANDINGS

ACTIVE WATCH: Signals from GPS satellites are received bythe GBAS GPS Reference Receivers (four receivers for eachGBAS) at the GBAS-equipped airport.

all the aircraft in the southern region can beseen at Chennai ATC centre. The integration ofradars facilitate direct routing of flights therebyreducing flight distance/time and saving fuelfor the airlines. The minimum distance betweenthe aircraft can be reduced through applicationof Radar Separation Minima even in theenroute airspace which helps the controller toaccommodate more number of flights in thegiven airspace. Ultimately, the aircraft wouldget their preferred flight path and desired level,thereby reducing the flying time and facilitat-ing on time performance.

Adequate safety nets in the form of conflictalerts, Minimum Safe Altitude Warning, etc.,ensure safety of aircraft by protecting the air-craft from obstacles and from other aircraft.

NEW INTEGRATED CHENNAI TOWERThis major initiative of restructuring ChennaiUpper Airspace would lead to application ofreduced separation between aircraft resultingin increased air space capacity utilization andenabling aircraft to get their preferred flightlevels and improving the on-time performance.This initiative would ultimately result inmarked improvement in ATM operational effi-ciency, safety of aircraft operations, fuel effi-ciency for airlines, savings in operating cost forairlines and environmental benefits due toreduced fuel burn and reduction in pilot/con-troller workload. Projected fuel savings are2216000 kg per annum and consequent costsavings are US $2.3 million and reduced carbonemission.

Continued ��o� Page 61

The integration of radars

facilitate directrouting of flightsthereby reducing

flightdistance/timeand saving fuelfor the airlines

The airport businesshas emerged over thelast two decades as athriving commercialenterprise and trans-

ferred from governmentmonopoly with public utilityoutlook to an industry driv-en by commercial-oriented

private entrepreneur-managed business units.Until recently, most airports were owned andmanaged by public authorities. Nonetheless, agrowing number of airports in Europe,Australia and New Zealand became fully orpartially privatised in the last 20 years. Manyairports in South Africa, Asia and otherregions are under review of being privatised.In India, the liberalisation started in 2006 withsetting up of PPP model airports.

Today, five airports are operating on PPPmodel wherein the majority stakes are with pri-vate hands. These five PPP airports are han-dling 65 per cent of passenger and 85 per centcargo business of the country. Available forecastsuggests that by 2020 the air passengerthroughput traffic will be around 300 million.

To meet this huge air traffic demand, the coun-try will require approximately 350-375 opera-tional airports across the country. This impliesthat huge private investment will have to beattracted as the Airports Authority of India(AAI) alone will not be able to raise such hugefunds i.e. US $30 billion. Similarly, India is like-ly to have a total of approximately 4,000 fleetstrength of various types of civil aircraft by 2025requiring an additional investment of approxi-mately $90-billion.

Airport privatisation is almost alwaysaccompanied by some form of price regula-tion. In reality there is no fully liberalised air-port market in the world and airport policymakers and regulators are basically consider-ing modifications of the regulatory regime inan ongoing way. A fine example is the debateon the Till which is true in the Indian contextalso.

Airports are considered natural monopoliesas far as airside is concerned. This has resultedin setting up of economic regulation of airports.The world over different countries have adopt-ed different forms of regulation (See ‘Keepingairports in check’).


Today, fiveairports areoperating

on PPP modelwherein the

majority stakesare with

private hands

RECIPE FOR SUCCESSMAKING A STRONG CASE FOR THE DUAL TILL APPROACH, SATYAN NAYAR IS CONFIDENT THATIN TERMS OF ECONOMIC EFFICIENCY, DUAL TILL REGULATION WILL HAVE A MORE POSITIVEIMPACT THAN SINGLE TILL. IN ADDITION, DUAL TILL WOULD MAKE THE AIRPORT BUSINESSATTRACTIVE FOR PRIVATE INVESTORS WITHOUT IGNORING PASSENGER INTEREST.

PUBLIC-PRIVATE HANDSHAKE: The Prime Minister, Dr Manmohan Singh, the Chairperson, UPA and National Advisory Council, Sonia Gandhiand the Chief Minister of Delhi, Sheila Dikshit at the dedication ceremony of the Indira Gandhi International Airport's Terminal 3 to thenation, in New Delhi.

Satyan Nayar

REGULATION

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2REGULATION

It is clear then that there is no uniform reg-ulatory approach adopted by all countries.While some countries have adopted Single Till,some are on Hybrid Till and some on Dual Till.It is also interesting to note that few countrieshave Light Hand Regulation wherein they willonly monitor the price and market. Let usexamine the concept of Till in the airport eco-nomic regulation context.

Concept of Till Issue:The Till concept is all about how the rev-

enue and the expenditure is treated in the pric-ing of aeronautical services. There are two dis-tinct forms of income and expenditure at an air-port and they are aeronautical and non-aero-nautical. The aeronautical set of business ismade up of fees received from the airport coreactivities and the non-aeronautical revenuecomes from the activities undertaken on top ofthe core activities. There are mainly three typesof Tills:

1) Single Till: In this case the entire rev-enue of non-aero services will be taken intoaccount for the purpose of tariff fixation. Thenon-aero revenue will be deducted from theallowable total revenue and the net revenue willbe the eligible revenue which the operator cangenerate from the airport operations.

2) Dual Till: In this case no part of non-aero revenue will be deducted from the allow-able yield. The airport operator will be entitledto retain the entire non-aero revenue.

3) Hybrid Till: In this case a certain per-centage of non-aero revenue will be utilised forsubsidising the aero revenue. This means a cer-tain percentage of non-aero revenue will bededucted from the allowable revenue.

In the price cap regulation, the allowable rev-enue of an operator is calculated by multiplyingthe WACC (Weighted Average Cost of Capital)on the RAB (Regulatory Asset Bases pertains toaeronautical assets only). This will be added with

depreciation and Opex cost. The total amountwill be the admissible amount which an operatorwill be entitled to recover from his basket of serv-ices. In the case of Single Till, the RAB will beboth aero and non-aero assets, whereas in othercases only aero assets will be considered for thecalculation of WACC. In some cases, relevantportion of RAB for non-aero services will also beconsidered as in Hybrid Till. The three Till con-cepts are explained in the diagram. It explainshow the aeronautical yield per passenger will becalculated under different Tills. The basic differ-ence is on the treatment of non-aero revenue (See‘Three Tills’). Professors Tae Hoon Oum, AnmingZhang and Yimin Zhang conducted a study onvarious forms of economic regulation for airportand the report has been published in the Journalof Transport Economics and Policy (Vol. 38, Part 2[2004]). The study shows that various alternativeforms of economic regulation have their efficien-cy implications for airports. Their analysisappears to support the argument made by sever-al economists that Dual Till regulation would bebetter than the Single Till regulation in terms ofeconomic efficiency especially for large and busyairports.

MOVE TOWARDS DUAL TILLThe cross subsidisation under Single Tillapproach leads to inefficient allocation ofresources and does not give the right signalfor capacity addition and cannot attractinvestment into the sector. Realising this, air-ports across the world are moving towards aDual Till regulatory regime. The regulatoryframework at major airports with privateequity (OECD countries) is:

The progressive move towards Dual Till hasnot been accompanied by higher charges as somehave argued. In fact, there is no evidence thatDual Till equals higher charges just as there is noevidence that Single Till leads to lower charges.


The aeronauticalset of business ismade up of fees

received fromthe airport core

activities

KEEPING AIRPORTS IN CHECKCountry / Airport Form of Regulation Remarks

UK, Austria, France, Ireland, Norway,Spain, Portugal and most airports inGermany

Single Till/ Single Till with price capregulation (RPI/CPI-x)

Aero-service prices below provisioncosts which pose a problem, speciallyat a congested airport

Frankfurt, Copenhagen, Malta andBudapest

Dual Till Argument that regulation should beconfined to the monopolistic bottleneckand incentive for developing the non-aero business should not be stifled

Belgium and Netherlands Rate of Return Complex and no incentive to reducecost

Australia and New Zealand Price Monitoring and Threat ofRegulation

Trigger or “grim strategy” regulationwhere a light-handed form of regula-tion is used until the subject firm setsprices or earns profits or reduces quali-ty beyond some point and thus, trig-gers a long-term commitment tointruding regulation

India, therefore, should not follow a systemwhich other countries have discarded or movingaway from.

REGULATION ON ECONOMICPRINCIPLESThe PPP model has been increasingly adopted asa preferred mode for building and operatingmodern airports. While allowing private playersit is essential to provide adequate incentive to theoperator. As long as the airports are government-owned, Single Till could be the best option butwhen private participation is in a large majority,Dual Till regulation has a more positive impactthan Single Till. It is a well-known economic prin-ciple that subsidies distort markets and conse-quently distort investment decisions. Includingnon-aeronautical revenues in the cost basis forthe calculation of airport charges can constitutean unwarranted subsidy to air carriers from theairport operator. Single Till can be contrary to theobjectives of cost-relatedness and the “user pays”principle which would require airport charges to

cover all of the costs of the services provided tousers. Non-aeronautical revenues, thus, can beconsidered among other sources of funding bythe airport operator to finance new investments,to pursue new business opportunities or to remu-nerate airport stakeholders at the sole discretionof the airport operator.

In a Single Till approach, the regulator wouldbe required to determine the expenses and rev-enues relating to non-aero activities while fixingthe charges. However, in a Dual Till regime, thereshould be no requirement to use non-aeronauti-cal revenues to reduce airport user charges and itshould be left to the airport operator to considera full or partial use of non-aeronautical revenuesto defray aeronautical charges as appropriate ornecessary to increase their competitiveness.Overall, the arguments for a Dual Till carriesmore weight and seem to prove the principle thatregulation should not intervene in workable com-petitive markets and should be restricted to themonopolistic bottleneck. There is no doubt that interms of overall economic efficiency, Dual Tillscores better than Single Till. It is a wellknowneconomic principle that subsidies, as in the casewith the Single Till, distort markets and conse-quently distort investment decisions. Dual Tillleads to better aeronautical investments becauseit forces management to look more closely at itsairport investment policy and operations toensure it delivers good performance.

India is on the verge of being a superpower.We need to ensure that Indian airports mirror ourgrowth and rise in world status. It is estimatedthat the airport system in India may be handlingover 300 million passengers per annum by 2020.Hence, additional airport capacity is urgentlyrequired. Non-aeronautical revenues today arethe key factors that makes airports an attractivebusiness for private investors. Non-aeronauticalrevenues critically depend on the number of pas-sengers and to some extent to the number of car-riers and destinations which are important forattracting business to an airport.

The airport sector in India needs $30 billioninvestment in the next 10 years to improve theairport infrastructure and spreading the air trans-port service across the country. According toOxford Economics, good air connectivity is vitalfor inward direct investment. The scale of currentand forecast demand at many airports clearlyindicates a need for increasing levels of invest-ment to maintain and enhance capacity at anappropriate service quality. Airport charges andnon-aeronautical revenues are major sources offunds for investment. Airports should be permit-ted to retain and invest these revenues to financefuture upgradation and modernization. Anyaction to restrict this use of revenues, or to requireall commercial revenues to be used solely toreduce current user charges, could conflict withthis objective and inhibit the much needed invest-ment. There is no incentive for the airportoperator to excel in Single Till regime.


REGULATION

The airportsector in India

needs $30billion

investment in thenext 10 years to

improve theairport

infrastructureand for

spreading the airtransport service

CAPEX

REGULATORYASSET BASE(RAB)

RETURN ON RAB

DEPRECIATIONOPEX

Non-aero revenue

Fair Rate of Return

Aeronau�cal Yield per Passenger

Service Quality

Price Cap Regula�on Single Till

Regulatory Building Block Approach Single till(RAB both Aero and Non - Aero)

CAPEX

REGULATORYASSETBASE(RAB)

RETURN ON RAB

DEPRECIATIONOPEX

Some % of Non-aero (eg.30%)revenue

Fair Rate of Return

Aeronau�cal Yield per Passenger

Service Quality

Regulatory Building Block Approach Hybrid Till (RAB Aero and a portion of Non Aero -In some cases only AERO)

Price Cap Regula�on Single Till

CAPEX

REGULATORYASSET BASE(RAB)

RETURN ON RAB

DEPRECIATIONOPEX

0 % of Non- aero revenue

Fair Rate of Return

Aeronau�cal Yield per PassengerService Quality

Price Cap Regulation Dual Till

Regulatory Building Block ApproachRegulatory Building Block Approach Dual Till (RAB only AERO)

THREE TILLS


VIEWS ON AIRPORT REGULATIONInnumerable papers have been written on prosand cons of Single and Dual Till regulation. Thereis no conclusion about which regulation is thebest and suits all countries. Various views havebeen expressed by well-knowneconomists/experts on the regulatory regime tobe followed while regulating the airports. Viewson Single and Dual Till are listed but it is veryclear that there is no uniform view on the regula-tory approach to be adopted for airport regula-tion.

ICAO ON ECONOMIC REGULATIONInternational Civil Aviation Organisation (ICAO)is a specialised agency of the United Nations cre-ated to oversee a safe and orderly development ofInternational Civil Aviation throughout theworld. It sets standards and regulations neces-sary for aviation safety, security, efficiency andregularity, as well as for aviation environmentalprotection. The views of ICAO on economic reg-ulation on airports are:

Where an airport is provided for inter-national use the user shall bear the full sharecost of providing the airport.

User charges should be non-discrimina-tory, cost-related, transparent and should befinalized after due consultation with users.

The cost to be shared is the full cost ofproviding the airport and its essential ancillaryservices, including appropriate amounts forcost of capital and depreciation of assets, as well

as the costs of maintenance, operation, manage-ment and administration, but allowing for allaero revenues plus contributions from non-aerorevenues accruing from the operation of the air-port to its operators.

The revised version of ICAO doc 9082,approved by the Council in October 2011 and tobe published shortly as the ninth edition, fur-ther clarifies the position of ICAO on the subjectof the cost basis for airport charges. The newversion leaves no doubt that ICAO stands neu-tral on the subject of Dual or SingleTill, leavingit to the economic oversight adopted in eachstate to decide on this matter.

From the above it is evident that:ICAO does not propagate Single Till.Even if contribution from non aero rev-

enue is to be taken it is only for airport opera-tions not from other activities like hotel, realestate etc.

ICAO insists cost basis for airportcharges.

TILL ON PRICE AND QUALITY The proponents of Single Till always arguethat the Single Till lowers the airport chargesand better quality. The arguments presentedin favour of Single Till are not true as evidentfrom the examples of airports. The evidence isthat Dual Till is better than Single Till inattracting investments. Research has shownthat the inefficiency effect of Single Till mayresult in prices being higher than they wouldbe under a Dual Till regime.

A review of International practice shows


ICAO is aspecialised

agency of theUnited Nations

created tooversee a safe

and orderlydevelopment of

InternationalCivil Aviation

throughout theworld

TILL OPERATIONSForm of Regulation Remarks

Single Till In case where allowed return is greater than or equal to the actual cost of capital, the airport has an incentive to make excessive investment in capital.As the regulation is essentially cost based, the airport would not benefit from cost reduction.As Tretheway (2001) puts it: "It is something like having an unlimited expense account: if you could produce a receipt, youwould be reimbursed."

Dual Till As long as concessions are profitable, the airportwill invest efficiently and provide airside servic-es with minimum social cost, regardless ofwhether concessions are regulated or not.

Price Cap Airports will try to under invest in capacity.Thus, while the price cap regulation alleviatesthe distortion in airport charges, it introducesthe distortion in airport capacity constraints.

Rate of Return May have undesirable implications for airportbehaviour, leading to inefficient capital invest-ment and a general lack of managerial drive toreduce cost and improve efficiency.

Copenhagen Dual Till

Aeroports de Paris Moving towards dual

Brussels Moving towards dual

Auckland Light handed

Sydney Light handed

Melbourne Light handed

Brisbane Light handed

Perth Light handed

Grupo Asur (Mexico) Dual Till

Grupo Pacifico (Mexico) Dual Till

OMA (Mexico) Dual Till

Hamburg Dual Till

Frankfurt Dual Till

Rome Dual Till

Zurich Light handed

Budapest Dual Till

Athens Dual Till

London Heathrow Single Till

London Gatwick Single Till


REGULATION

that majority private owned airports operateunder Dual/ Hybrid Till. The evidences fromthe international airport sector clearly indi-cate the preference for a Dual Till/Hybrid Tillapproach in the countries where private sectorairports play a prominent role. Except for UKairports, all the key private international air-ports are under Dual or Hybrid Till.

Airports of similar size, structure and ageshould show lower charges under Single Tillthan Dual Till if arguments hold - but thebenchmarks indicate this relationship doesnot hold consistently.

In a study conducted by IATA, London'sHeathrow Airport — following Single Tillapproach — has been found to have highcharges and poor service quality. Paris Airport(ADP) currently on a Single Till was moreexpensive than near neighbour European hubAmsterdam (Dual Till) or Copenhagen andBrussels (Hybrid), Mexico and Cancun (bothDual Till) are the lowest priced regulated air-ports on the list.

Research shows that Dual Till airportsprovide better service quality to customers. Ina study conducted by Jacobs Consultancy,Dual Till airports have emerged as airportswith better service quality. In terms of theoverall average scores, Dual Till, Hybrid, andLight Handed and indeterminate airports allhave average scores of just over 4 while SingleTill airports have scores averaging 3.75.

HYBRID TILL AS A BETTER APPROACHAt Brussels Airport, the movement fromSingle to Dual Till is taking place. AtAeroports De Paris, recent proposals envisagetaking retail activities out of regulation from2011, with the possibility of transferring theremaining other activities over time. As perthe report of Economic RegulationFramework of Aeroports de Paris: Current sta-tus and prospects February 1, 2010, theswitching over from Single Till to Dual Till byParis airport has been recommended for thesereasons:

1. Greater incentive for the competitive-ness

2. Efforts undertaken with regard to retailactivities and traffic growth would bringvalue unlike the Single Till system.

3. Helping to establish a direct and strongincentive for airports.

4. A significant motivational factor forcontinuing retail activities.

5. Incentive for investment to developand improve airports.

6. A price signal on fees that has a directlink to infrastructure and service costs andtheir development promote economicallysound and responsible behaviour.

The United States provides a useful com-parable environment in which residual cost(Single Till) airports operate alongside com-pensatory (Dual Till and Hybrids). Currently,only about one-third of agreements at majorUS airports are on a residual basis, comparedto almost 60 per cent in 1983.The CivilAviation Authority (CAA), the regulator inthe UK, has observed in its review reports thatthe investment requirements of the airportscould not be met with the current Single Till

HOW THE EXPERTS SEE ITExperts Views on Airport Regulation

Beesley (1999) Price cap regulation is inappropriate in case ofLondon Heathrow

Tretheway (2001) ROR regulation tends to be complex, unrespon-sive and expensive to administer

Kunz and Niemeier Cost-based RoR regulation used in Germany isinefficient and results in the mis-allocation ofresources

Starkie (2001) Ex-ante regulation for airports might be unneces-sary because the airports are unlikely to abusetheir monopoly power due to the existence ofcomplementarity between the demand for avia-tion services and demand for concession services.

Starkie (2001) Since increased concession activities can causesuperior locational rents, increase in traffic vol-ume at an airport would often produce a signifi-cant increase in its profitability. Therefore, evenan unregulated profit-maximising airport wouldhave a strong incentive to reduce aviation usercharges in order to take advantage of the unidi-rectional demand complementarity from passen-ger volumes of aircraft movements to concessionsales. This means that as long as an airport pro-vides both aviation services and retailing activi-ties, its incentives will be to set airside-usercharges lower than if runways were a stand-alone facility, and thus there may be no need toregulate its aviation-user charges.

Tae Hoon Oum,Anming Zhang andYimin Zhang (2004)

The extent of the under investment is found to be less under the Dual Till price cap than under the single till price capTotal factor productivity is greater under the dual till price cap than under either the sin gle price cap or Single Till RORAnalysis supports the argument made by several economists that Dual Till regulationwould be better than the Single Till regulation in terms of economic efficiency, especially for large and busy airports.

AustralianProductivityCommission InquiryReport (2002)

The scope for airports with market power to use (or abuse) that power is constrained by commercial pressures and opportunities,particularly the substantial ‘non-aeronautical’ income to be had from promoting airline passenger traffic.In these circumstances, because of the risks and potential costs of strict price controls relative to more light-handed price regulation, such controls are judged not to be required even at the four airports with substantial market power.



regime. Further, from the results of some glob-al airport benchmarking studies providesstrong evidence against the presumption thatSingle Till airports maximise overall welfare.

AIRPORT COMPETITIONInternational experience for the airport sectorhas clearly shown that the heavier and morerigid the regulation, the lesser are the incen-tive for the airport operator for further invest-ment. The new reality is that airports competeagainst each other, and face correspondinglyreduced market power in their negotiationswith airlines. In fact, for some airports, thebalance of power has completely changedover recent years, with airlines and airlinealliances often being the dominant party innegotiations. Consequently, airports aroundthe world are increasingly offering aggressiveairline discounts and incentive packages. Formany airports, the potential for growth is lim-ited to a few airlines, with airports vying toprovide the best deals to these. Aeronauticalcharges have been observed to be less than 4per cent of the operating cost of airlines worldover. These are even more immaterial at thepassenger level. Hence, the costs of regulatingthe prices of Indian airports are not likely toresult in significant benefits. In fact, excessiveregulatory intervention will stifle airportcapacity addition and in the long run thiswould prove more detrimental to the aviationsector. If there is a competition there need notbe any regulation.

Airports are the economic engines forgrowth and prosperity of any country. Betterairports foster evolution in the airline indus-try and play a crucial role in the choice of theconsumer. Subsidised airport charges maykeep airlines content, but if those charges areover-stimulating demand and not allowing anadequate infrastructure to be provided, thenthey are neither efficient nor sustainable, andare damaging social welfare. Airports operatein an increasingly competitive environmentand must undertake multi-billion investmentsin order to provide the much required infra-structure.

According to Professor David Starkie,even an unregulated profit-maximising air-port would have a strong incentive to reduceaviation user charges in order to take advan-tage of the unidirectional demand compli-mentarity from passenger volumes of aircraftmovements to concession sales. In an indus-try where the balance of market power isincreasingly unclear, economic regulators canbest serve the common good by regulatingonly in areas where there is evidence of mar-ket inefficiencies resulting from the dispro-portionate pooling of market power. To dootherwise risks further distortions, and theunnecessary and inherently highly politicalarbitration as to who gets what rent transfer.Regulating only where necessary is an inher-ent part of efforts to ensure fair competitionand ultimately to maximise economic welfare,and is central to all attempts to create pricingsignals equivalent to those which would result

HOW THE EXPERTS SEE ITExperts Views on Airport RegulationAustralianProductivityCommission InquiryReport (2002)

If the government nevertheless were to opt for astricter form of price regulation, CPI-X pricecaps are preferred because they can offer incen-tives for efficient airport operation.1. Unlike the existing price caps, however, anynew price caps should be explicitly based on a‘Dual Till' and factor in anticipated investment.2. Conventional price caps would be confinedto Melbourne, Brisbane and Perth airports. For acapacity-constrained Sydney Airport, arrange-ments should not be such as to force pricesdown.3. Whatever the regulatory framework decidedfor Sydney Airport, that policy, in particular thepricing and investment provisions should beclearly and publicly articulated to bidders sothat the sale price can adequately reflect it.

AustralianProductivityCommission DraftInquiry Report (2011)

Under light-handed regulation, airports havecontinued to invest to meet the growth in airtravel, without the bottlenecks that have besetother infrastructure areas:1. There has been a marked increase in aero-nautical investment since the removal of price-caps, with an additional $9 billion projected overthe next decade2. Aeronautical charges do not indicate misuseof market power and quality outcomes are gen-erally ‘satisfactory’, although airlines have, onoccasion rated two airports as ‘poor’

CompetitionCommission of UK

In practice there would be no effect on air fares at either congested or uncongested airports if airport charges were to be higher atthe three BAA London airports as a result of a switch to a Dual Till regime. A move from the single till to the Dual Till would in the longer term mean a substantial transfer of income to airports from airlines and/or their passengers, potentially under mining regulatory credibility and creating regulatory uncertainty

Aeroports De Paris(ADP)

ADP moved to a Dual Till regulatory regime from 1st January, 2011.The move was driven by ADP’s objective toremain competitive, concentrating on largerinvestments and making airport business attractive for the investor.

New Zealand In May 2003, the Commerce Minister announcedthat no controls would be imposed at any of thethree airports viz. Christchurch, Wellington andAuckland. Commerce Minister mentioned thatshe had “taken into account a wider range ofmatters than those the Commerce Commissionwas asked to consider. I have given particularregard to the negative net public benefits of con-trol and the relatively small net benefits to theairlines, and indirectly passengers”.


in a fully competitive non-regulated environ-ment. This will enhance economic and viableoperation of airports. If there is a competitionthere need not be any regulation and can haveLight Hand regulation of price monitoring.

The objective of any regulation should beto bring “competitive prices” and not “mini-mum prices”. World experience shows thatthere is no best fit regulation. Regulation hasto be adaptive to the requirements of eachcountry. India needs substantial investment,that too private, for airport infrastructure.Indian airports are on a growth trajectory andrequire to align their charges to graduate fromobsolete facilities to world-class infrastructure.It is important that Airports in India need toremain incentivised to deliver adequate invest-ment in capacity in the years ahead and thisrequires authorities to tailor economic regula-tion to the current competitive state of theindustry. Hence, it is essential that returns areattractive enough for private investors. If theregulation mandates that non-aero revenue isfully put in the Till, there will be no motivationto increase Non-Aero revenues as the entireamount goes for subsidisation. It is a well-known economic principle that subsidies, as inthe case with Single Till distort markets andconsequently distort investment decisions.There is no doubt that in terms of economicefficiency, Dual Till regulation has a more pos-itive impact than Single Till. In the Indian con-text, there should be Dual Till to make the air-port business attractive for private investorswithout ignoring passenger interest, which istaken care of in Dual Till as excessive usercharges at an airport would run counter to theobjective of growing passenger and traffic vol-ume. Higher aero revenues from higher usercharges can never compensate for loss of pas-senger and traffic volumes with higher Non-Aero revenues. Hence, the airport operatorwill have a strong incentive to reduce aviationuser charges to attract more passengers.

Given the massive investment requirementsand the desire of the government to promoteworld-class airports and facilities in the coun-try, the right approach to the Till regime wouldgo a long way in setting the right incentives forthe airport operators. India needs to incentiviseinvestors willing to participate in the develop-ment of airport infrastructure. It has beenproven beyond doubt that Dual Till is the mostappropriate regulatory approach to ensure thatIndia develops airport infrastructure to meet itsfuture growth. This is the only way we canensure that the pace of regulation is in tunewith the development of the sector and attractthe much-sought investment in the sector andtakes India to the top three civil aviation mar-kets of the world by 2020.

(The writer is Secretary General, Association ofPrivate Airport Operators, headquatered at Delhi.)


All regulatory approaches

10,000

20,000

30,000

40,000

50,000

60,000

70,000

New

Yor

k JF

K

Toro

nto

Ath

ens

New

Jers

ey-E

WR

Osa

kaFr

ankf

urt

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dney

Van

couv

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kyo

Zuri

chLo

ndon

-LH

RV

ienn

aBr

usse

lsW

arsa

wBe

rlin

Mun

ich

Prag

ueBu

dape

stA

uckl

and

Cope

nhag

enD

usse

ldor

fLi

sbon

Beiji

ngD

ublin

Seou

lW

ashi

ngto

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slo

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khol

m Los

Ang

eles

Mos

cow

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n-M

XPM

iam

iM

adri

dBa

ngko

kSa

n Fr

anci

sco

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elsi

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Joha

nnes

burg

Jedd

ahLo

ndon

-LG

WSi

ngap

ore

Mum

bai

Mex

ico

City

Ca

ncun

SaoP

aulo

Hon

gKon

g Ku

alaL

umpu

r D

ubai

Char

ges

inde

x (S

DRs

)

LightSingle Dual Hybrid Indeteminate hand

Source: Jacobs Consultancy Report on Review of Airport Charges, 2009

Ranked quality

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Seou

l

Sing

apor

e

Hon

gKon

g

Beiji

ng

Canc

un

Toky

o

Bang

kok

Kual

a Lu

mpu

r

Van

couv

er

Mex

ico

City

Zuri

ch

Auc

klan

d

Mun

ich

Mum

bai

Cope

nhag

en

Toro

nto

Joha

nnes

burg

Stoc

khol

m

Ath

ens

Dub

ai

Am

ster

dam

Osl

o

Hel

sink

i

Mos

cow

Lond

on-L

HR

Lond

on-L

GW

Sydn

ey

Mad

rid

Vie

nna

Dub

lin

Rom

e

Buda

pest

Fran

kfur

t

Pari

s-CD

G

Lisb

on

Mila

n-M

XP

ASQ

scor

e fo

r ov

eral

l sa�

sfac

�on

Single Dual Hybrid Indeterminate Light hand


Tills only quality

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

ASQ

sco

res

for

over

all s

a�sf

ac�

on

Single Dual Hybrid

Cancun JohannesburgCopenhagen Athens Amsterdam London-LHR London-LGW Dublin Paris-CDG


(Note: Toronto, though shown as Light Handed, is 'not for profit' and, therefore, havingsimilar characteristics of a Single Till airport. Mumbai is shown indeterminate as it is stillfollowing AAI rates.)

Table 1

Table 2

Table 3

Table 3 shows the service quality levels of airports specifically under Single or Dual/ HybridTill regimes. It can be seen that 3 of the top 4 airports follow Dual/ Hybrid Till while all bot-tom 4 airports are Single Till airports


A ir transport is a major contributor tothe global growth and economic well-being. Aviation is the onlymajor rapid world-wide transporta-tion network, which makes it indis-

pensable for global business and tourism.Industry forecast suggests that the globaleconomy will become increasingly dependenton international trade, of which air transportis an important facilitator. It plays a crucialrole in facilitating economic growth, particu-larly in developing country like India.

The Indian economy is passing through ahigh growth phase. The real GDP per capita ofIndia, which grew at a CAGR of 3.9 per centduring 1992-2001, grew at a much higherCAGR of 5.9 per cent during 2001-2011,according to Reserve Bank of India. India wasone of the few countries that led the recoveryfrom the global financial crisis of 2008-09. It isexpected to continue on the high growth pathfor over the next five years.

India has the potential to become a leadinghub for passenger and cargo traffic. India canreap its demographic advantage as a wide sec-tion of the population nurtures an aspirationto fly. India also has the natural talent to driveinnovation and technology development inthe area of aircraft design and manufacturing.

Civil aviation industry by virtue of its

dynamics is vulnerable to economic reces-sions, natural disasters and politicalupheavals. Still, the Indian civil aviationindustry has managed to exhibit resilience tothe recent global economic slowdown. Bothpassenger and cargo traffic have shownrobust growth and there has been modernisa-tion and augmentation of capacities, in amajor way, at various metro and non-metroairports. Some of the key achievements duringlast five years include the following:

India has become the ninth largest civilaviation market in the world in 2011.The passenger-handling capacity has risenalmost two fold from 73 million (FY 06) to144 million (FY 11). The cargo-handling capacity has risenfrom 1.5 million MT (FY 06) to 2.3 millionMT (FY 11).Connectivity to the North-Eastern regionhas risen from 87 flights per week to 286flights per week. Four international airport projects weresuccessfully completed through the pub-lic-private partnership (PPP) mode —greenfield development of Hyderabad andBengaluru international airports and mod-ernisation of Delhi and Mumbai interna-tional airports.The Airport Economic Regulatory


The IndianGDP per capita

that grew at aCAGR of 3.9 per

cent during1992-2001 rose

to a muchhigher CAGR of

5.9 per centduring 2001-

2011

INFRASTRUCTURE

AMBER DUBEY

SIX CRITICAL POINTERS FOR GROWTHOF INDIAN AVIATION WHILE IT IS GENERALLY ACKNOWLEDGED THAT INDIA WILL BE AMONG THE TOP THREE AVIA-TION MARKETS BY 2020, THERE ARE CHALLENGES THAT HAVE TO BE OVERCOME TO REACHTHAT TOP SPOT. AMBER DUBEY HIGHLIGHTS THE MOST IMPORTANT.

Authority (AERA) was established to safe-guard the interests of users and service-providers at Indian airportsBy end of 2011, five Indian carriers wouldbe operating on international routesEnhanced national and international con-nectivity — 72 foreign airlines are operat-ing to/from various destinations.By FY 11, India had bilateral agreementswith 104 countries.Significant investments are planned over

the next five years, which is a clear indicationthat Indian aviation is likely to continue onthe robust growth trajectory. The 11th Planhas propelled the Indian aviation sector on ahigh growth path. In FY 11, India has alreadymade its place among the 10 largest aviationmarkets of the world. Based on the currentgrowth estimates, India is expected to beamong the top three aviation markets of theworld by 2020.

However, there are challenges to over-come. Air-travel is not prevalent among themasses. Global comparison of air travel pene-tration shows that India at 5 per cent standsfar behind the developed countries such as theUS and Australia at over 200 per cent. China'sdomestic traffic is five times the size of India'sdespite having a population just 10 per centlarger. There is significant growth potential

for the Indian civil aviation industry as econo-my grows, disposable incomes rise and thevalue of time becomes more precious.

Airports Council International (ACI) hasprojected that India will be the third-largestaviation market in the world within 12 to 15years. Airbus projects that the domestic avia-tion market in India will be the fastest-grow-ing market in the world over the next 20 years.In order to facilitate this significant growthpotential, India will need more airports, high-er capacity, supporting infrastructure, financeand human resources. All this would requireprogressive policies and collaborativeapproach between the government, industryand the public at large.

KEY ISSUES AND POSSIBLE ENABLERS A. Airport regulatory till philosophyThere are certain areas where there is a

significant diversion of opinion between theregulator AERA and the industry. There isneed for a stable, transparent, predictable andinvestor-friendly regulatory regime with amechanism for time-bound resolution ofissues to create a sense of certainty in the sec-tor.

The private sector played an unprecedent-ed role during the 11th Five Year Plan by act-ing as a key contributor for the development


Significantinvestments areplanned over thenext five years,which is a clear

indication that Indian

aviation is likelyto continue on

the robustgrowth trajectory

INFRASTRUCTURE

BILATERAL AGREEMENT: The Minister of Civil Aviation, Ajit Singh and the Minister of Foreign Affairs and Communication of Trinidad andTobago, Dr Surujrattan Rambachan signing an air services agreement between the Government of India and the Government of Trinidad andTobago in the presence of the Prime Minister, Dr Manmohan Singh and the Prime Minister of the Republic of Trinidad and Tobago, KamlaPersad-Bissessar.

OUTLOOKSPECIALC R U I S I N G H E I G H T S M A R C H 2 0 1 2INFRASTRUCTURE

of PPP airports. Total investment made by pri-vate airport operators in the last five yearswas to the tune of `30,000 crores spread acrossGreenfield development of Hyderabad andBengaluru international airports and mod-ernisation of Delhi and Mumbai internationalairports, according to Association of PrivateAirport Operators (APAO). Estimatesreceived from AAI and APAO indicate thatthe Indian airports would require an invest-ment of about `65,600 crore during the 12thPlan of which around `50,000 crore is likely tobe contributed by the private sector.

Attracting and managing finance of thismagnitude won't be an easy task. Governmentmust take an initiative to encourage/facilitateto attract private investors to invest in the air-port sector. Apart from the need of a clear air-port development policy, certainty in regula-tory regime is the most important factor inattracting private sector investment.Regulations without considering the pastagreements entered into by government withthe private players could severely impactfuture investments in the airport sector. Theability to mobilise private capital hinges uponthe creation of a supportive investor-friendlyenvironment. A forward-looking and investor-friendly regulatory regime can only ensure free flow of large-scale privatecapital.

B. FDI by foreign carriers and ATF ratio-nalisation

The proposal to allow 49 per cent FDI byforeign airlines has been moved to theCabinet, which will take it up shortly. Then itwill be debated in the Parliament, before final-ly being legislated.

FDI by foreign airlines is a significant deci-sion and can play a crucial role in improvingthe aviation landscape in India. Apart fromthe much-needed fund infusion, it would alsoprovide access to global routes, managerialexpertise and synergy benefits. It brings uscloser to achieving the ministry's vision ofmaking India a global aviation hub a la Dubaiand Singapore.

The earlier decision to allow foreign par-ties (such as PEs, NRIs and VCs) buyingstakes in domestic carriers yielded limitedresponse. Airline sector requires long-terminvestors, who can bring in technologicalexpertise as route planning, operational andfinancial management, global alliances andoutsourcing strategies. Thus, FDI by foreignairlines augurs well for the overall growth ofthe sector.

Policy changes on ATF pricing: High costof ATF (40-50 per cent of their total operatingcost) is a formidable challenge for the finan-cial health of airlines. This has been a longstanding issue and requires an immediate res-olution.

ATF prices in India are distorted because:It is subjected to a multitude of cascading

taxes by different government entities. Despite being an input fuel (similar to coaland gas), it is subjected to sales tax as highas 30 per cent.As per KPMG analysis, it is nearly 60 percent costlier than that in competing hubssuch as Dubai, Singapore and KualaLumpur and hurts India's competitive-ness. Many a time, air-tickets to theseglobal locations are cheaper than that forlocations within India. To offset the high costs, government has

agreed to the demand of airlines for directimport of ATF. This is a vital step in theprocess of bringing ATF prices in line withglobal standards. This will help the entireaviation industry in the long term. In shortterm the airlines may need to depend onOilcos infrastructure and expertise. It may bea challenge for an airline to get into the com-plex business of ATF procurement, transporta-tion and storage business.

India incidentally produces around 10 mil-lion tonnes of ATF every year of which as highas 45 per cent is exported. It defies logic thatairlines may need to import ATF in an ATFsurplus country and clearly shows that ourtaxation policies need to be more visionaryand business oriented. The state-governmentsmay now decide to rationalise high ATF taxes.

That would nullify the need for direct ATFimport in the first place. Air travel is not anend in itself. It only facilitates movement ofgoods and people for economic activity. Theresultant increase in air traffic, fuel uplift,employment generation and higher economicactivity will be more than compensate thestates for the notional loss of sales tax in theshort term.

C. Establishment of Air FreightStations (AFS)

Most of the airport warehouses are con-gested, because of infrastructure overload,leading to delay in the cargo processing. Thishas contributed to the increased dwell timefor both imports and exports. The concept ofAFS was conceived as a means to reduce con-gestion in the airport premises, by permittingtransfer of cargo to designate/customs noti-fied freight Stations — AFS or ICDs. This willfacilitate greater throughput efficiency, reducedwell time, and maximise the utilisation ofinstalled capacity.

Traditionally, almost all activities relatedto air cargo processing (including weighing,screening, customs examination, ULD forma-tion, etc.) have been done at the cargo termi-nals. With the growth of cargo volume, thecurrent space at most cargo terminals in coun-try is proving woefully inadequate, leading tosevere congestion issues. Steps need to betaken to facilitate extension of airport func-tionalities to off-airport locations through AirFreight Stations (AFSs) and Forwarders'Bonded Terminals (FBT). The enormous suc-


Apart from theneed of a clear

airportdevelopment

policy, certaintyin regulatoryregime is the

most importantfactor in

attracting privatesector

investment


INFRASTRUCTURE

cess of CFS (Container Freight Station) indecongesting the Indian sea ports is an exam-ple worth emulating by the air cargo sector.

However, it has been noted that existingAFS's as notified by Ministry of Finance havenot been made operational. The key reasonsfor this non-operationalisation of AFS are:

i. Lack of enabling customs procedures inplace of off-airport clearance facilities.

ii. Absence of legal framework to ensurecreation and utilisation of AFS instead of merenotifying of the facility.

iii. There appears to be reluctance on thepart of the Custodians (Air TerminalOperators) to accept AFS as a support facilityon the assumption that it may drain their rev-enue. Hence, there should be a legal frame-work to ensure creation and utilisation of AFSinstead of mere notifying of the facility.

The barriers with regard to operationalis-ing the AFS concept should be removed with-out any further delay. It is vital that the regu-latory clearances and notifications concernedare issued by Customs, permitting the bonded(duty-free) movement of cargo to and fromthe off-airport terminal/shipper's premises.

D. MRO taxation issueIndian MRO industry is expected to triple

in size from `2,250 crore in 2010 to `7,000crores by 2020. However, this future size maystill be small compared to the present MROindustry size of other countries such as UAE(`8,000 crores per annum) and China (`10,000crores per annum). This is mainly due to thediscriminatory tax policies, which have result-ed in making the domestic MRO playersuncompetitive. Some of the key enablers tomake India a regional MRO hub are:

i. Elimination of discriminatory taxationpolicy for domestic MRO players: Due to dis-criminatory tax policy, Indian MRO playershave to suffer an additional tax burden ofnearly 40 per cent over foreign MROs. Theseare in terms of import duties, VAT and servicetax. This has led to India carriers taking theiraircrafts, at a high cost, to other MRO loca-tions such as Dubai, Singapore, Malaysia etc,since it still works out to be more cost-effec-tive than that in India.

It therefore appears that our taxation poli-cy has actually created business for our com-peting countries. The resultant tax revenuesin India from MRO are a fraction of whatcould have been. There is a need for an urgentreview and reversal of this anomalous taxa-tion policy.

ii. Abolishing of import duties for spareparts: Due to high import duties, (not appli-cable to foreign MROs) local MROs are notable to maintain an inventory of key spareparts. This at times leads to aircraft beinggrounded for longer periods. Abolition or reduction of import duties for spare partswill cut short the timelines for servicing

the aircraft.E. Need for capacity buildingThe impressive growth in Indian aviation

has resulted in a similar growth in employ-ment opportunities in the sector. However, thesupply of available skilled manpower has notbeen able to match the requirement. With pas-sengers and aircraft fleet likely to triple by2025, the need to augment the skilled man-power supply is immediate. As per a KPMGanalysis, total manpower requirement of air-lines is estimated to rise from 62,000 in FY-2011 to 117,000 by FY-2017. Some key enablers needed to augment the aviationhuman resource supply base are:

i.Pilot training academies: India currentlyhas over 4,500 pilots, including 400 expatri-ates. With the doubling of fleet size expectedby 2017, India will require a total of around9,000 pilots by 2017. There is acute shortage oftrained pilots in India. Shortage of pilots leadsto an artificial increase in their salary levelswhich hurts the profit margins of airlines,especially the LCCs.

There is a need to increase the number ofpilot-training academies and the capacity ofexisting academies by way of capital subsi-dies. Foreign investment in pilot trainingacademies needs to be encouraged.

The success of CAE at Rae Bareli andGondia should be replicated at other locationsalso. Certificates issued by leading flyingacademies in the developed world should bemade acceptable in India, subject to adequatechecks by DGCA.

ii.ATC training academies: The number ofAir Traffic Control Officers (ATCOs) hasgrown from 1,500 in 2008 to around 1,900 in2011. There is still a shortage of around 350-400 ATCOs. Training and capacity building ofATCOs should be an immediate priority.Partnership options with international ATCtraining institutes should be explored toenhance capacity of CATC.

The enhanced capacity can also helpCATC earn additional revenue in the long runby training foreign ATCOs and providing con-sultancy services to global ATC serviceproviders. The Indian civil aviation industryis on a high-growth path. The vision is tomake India one of the five largest civil avia-tion markets in the world by the end of the12th Plan period (2017).

The government, industry, media and thepeople at large should work together toaddress the opportunities and challenges.With the right vision, roadmap, policies, regu-latory framework and a relentless focus onquality and cost, India would be well set toclaim its rightful place in the global civil avia-tion industry.

(The writer is Director-Aviation, KPMG. Withinputs from Kunal Sinha, Consultant, KPMG)

Due todiscriminatory

tax policy, IndianMRO playershave to suffer an additional

tax burden of nearly

40 per cent over foreign

MROs

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2DELHI

INDIRA GANDHI INTERNATIONAL AIRPORTRAISING THE BAR


TODAY, THE INDIRA GANDHI INTERNATIONAL AIRPORT IS AMONG THE TOP IN THE WORLD,ACCORDING TO THE ACI’S ASQ RATINGS. THE LEAP TO THE SIXTH POSITION FROM THELAST — 110 — IN THE HEAP IN A SHORT SPAN OF FOUR YEARS IS NO MEAN FEAT. IT TOOKHARD WORK, COLLABORATION AND INSTILLING A SENSE OF BELONGING AMONG THESTAFF OF THE AIRPORT. A DETAILED LOOK AT WHAT WENT BEHIND THE SCENES.

F rom being at the bottom of the pileof Airport Council International’sASQ ratings, the Indira GandhiInternational Airport (IGIA) atDelhi has made a remarkable leap to

the sixth position in the world in 2011. Manymight call it sheer luck, but the truth is thatIGIA has undergone a metamorphosisthrough meticulous hard work that percolat-ed down to every employee of the eighthlargest airport in the world. That it hasimproved drastically has been measured byAirport Council International’s AirportService Quality (ASQ) Survey, on the sameparameters and scale as with the world’s 200member airports. How this leap of faith hap-pened and what were the circumstances thatled to Delhi airport raising the bar for all air-ports, is a story waiting to be told.

The second busiest airport in SouthAsia, IGIA is a vital link between India andrest of the globe. From being an airbase forthe British Royal Air Force during theSecond World War, and post-independenceserving the Indian Air Force, it evolvedfrom Palam Airport to Indira GandhiInternational Airport when Terminal 2 wasinaugurated on May 2, 1986. The airport hascome a long way since then.

In 2003-04, Delhi airport handled 10.4million passengers, of which 58 per centwere domestic. Nearly 97 per cent of thecountry’s foreign tourists arrived by air,mostly through the Delhi and Mumbaigateways. Tourism was the nation’s secondlargest foreign exchange earner. But thestate of the airports was quite dismal. Thiswas reflected in a survey by theInternational Air Transport Association(IATA) which revealed that for the year1999, Delhi and Mumbai airports rankedamongst the three least favoured airports inthe Asia-Pacific region in each of the 19service elements considered.

The modernisation of the airports wasthe only option left with the government andwhen Delhi got the mandate to host theCommonwealth Games 2010, the decision tomodernise received a fresh impetus.

In June 2003, the Airports Authority of India (AAI) board had approved a mod-ernisation proposal. Delhi airport handledtwice as many aircraft movements as it wasoriginally designed for, resulting in conges-tion for both aircraft and passengers.Capital crunch with the government led tothe emergence of privatisation for modernising the languishing Indian airports.


DELHI

IGIA hasundergone a

metamorphosisthrough

meticulous hardwork that

percolated downto every

employee of theeighth largestairport in the

world

EXCELLENCE: Aview of Terminal 3from the cityside


Finally, a bidding process began in May 2004and on January 31, 2006, the then aviation min-ister Praful Patel announced that the empow-ered Group of Ministers (GoM) had agreed tohand over the management of Delhi Airport tothe DIAL consortium.

The year 2006 became a watershed in thehistory of Indian airports. Change was in theoffing. The airport initiated the journey towardsdelighting passengers. It was one of the bestPublic-Private Partnership (PPP) models thecountry was going to witness. OMDA orOperations, Management and DevelopmentAgreement which was signed between DelhiInternational Airport Private Limited (DIAL)and AAI had the deliverables well chalked out.

In addition to operations and the develop-ment of the existing Terminal T1 (Domestic) andT2 (International), DIAL was to implement a 20year airport Major Development Plan (MDP)developed by the Lead Technical Advisor (LTA)consultant group comprising Mott MacDonald,HOK Architects and Pell and Fishman. TheMDP envisaged developments in four stageswith the current Project being Phase 1. Phase 1comprised a new runway, passenger terminalbuilding (T3) and other supporting infrastruc-ture.

The newly-renovated terminals were appre-ciated by the passengers. The focus was entirelyon the passengers. The airport personnel, securi-ty staff and all those dealing with passenger facil-itation were sensitised about their vital role andthe importance of the passengers visiting the ter-minal. Several initiatives like DISHA ensuredthat airport staff knew how best to handle thepassengers and all those who visited the airport.The slow and steady change was reflected in theACI ASQ survey conducted in 2009. That year,IGIA featured at the 32nd position among the 140airports which participated in this survey. Theposition was no minor feat. It was crowned withthe tiara of twin triumphs: being the mostimproved airport in the Asia Pacific Region andthe fourth best airport in its category of 15-25mppa (million passengers per annum).

The major target in the course of delightingthe passengers was to build up a world-classintegrated domestic and international terminal,T3. DIAL went ahead and developed a brand

new domestic departure — T1D — and dedicat-ed it to the nation on February 26, 2009. Thisterminal pre-empted what was coming in a bigway in the form of T3.

The improved facilitation measures in theform of officials and staff dealing with passen-gers, improved services, better amenities andseating arrangements, reduced traffic snarls, allled to an even better score on ASQ parameters.In 2010, IGIA reached 12th rank among the par-ticipating 154 airports across the world. Also, itmaintained its 4th position in the region but inthe new category of 25-40 mppa featuring someof the best airports of the world.

The best, however, was yet to come. Theopening of the New Integrated PassengerTerminal Building — T3 of IGIA marked thebeginning of an extraordinary travel experiencefor passengers from Delhi. T3 is the 8th largestterminal building in the world. Handling bothinternational and domestic passenger loads,DIAL has built an additional capacity to handle34 million passengers per annum.

T3 has India’s largest and integrated check-in for and baggage retrieval facility. CommonUser Passenger Processing System (CUPPS) andan advanced five level in-line baggage handlingsystem with explosive detection technology isput to use to ensure quicker processing andhigher security. 6,400 m of conveyor belts areused for the totally automated baggage han-dling system at T3 which can handle 12,800bags per hour.

Some of the high-end security systems pro-vided at IGI Airport include sophisticatedCCTV system with more than 3100 cameras;fully-fledged dog squad with trained snifferdogs; fully-equipped bomb detection and dis-posal squad; more than 90 X-Ray machines;explosive detectors and more.

There is a state-of-the-art SecurityOperational Control Centre (SOCC) at IGIA thatoperates round the clock under the charge of theCISF (Central Industrial Security Force). All thefeeds received from the elaborate CCTV cover-age network at IGI Airport and also thePerimeter Intrusion Detection system are moni-tored at the SOCC. The IGI Airport was special-ly chosen by the BCAS (Bureau of Civil AviationSecurity) to showcase the security standards


The airportinitiated the

journey towardsdelighting

passengers. Itwas one of the

best PPP modelsthe country

was going towitness

maintained at the airports in the country for theInternational Civil Aviation Organisation(ICAO) audit of country. The audit of IGI airportwas conducted by the International CivilAviation Organisation in February, 2011 whereIGI Airport was found to be fully compliant withthe provisions of Annexure 17 and NationalCivil Aviation Security Programme (NCASP). AtIGIA, there are more than 4500 fully trainedCISF personnel effectively maintaining security.Trained security personnel, passenger supportstaff and registered taxi operators with biomet-ric cards ensure a much safer travel to and fromthe new airport terminal.

Almost 20,000 sq m of retail area offers bag-ful of delights at the duty free stores. Passengersget the feel of a huge mall inside the terminalitself. Shoppers have a tough time choosingfrom a mind boggling variety of products fromthe best of Indian and international brands.Swanky lounges, nap and shower rooms add tothe passengers’ delight. Pizza Hut, CopperChimney, Costa Coffee, KFC, Flavours, CaféRitazza and the Food Village together with finedining and well stocked bars make the passen-gers want to wait for their flights.

The airport provides various avenues forentertainment. Television, free Wi-Fi internetconnection keeps flyers hooked to the world. Incase they wish to rejuvenate and relax, there areShower and Massage Lounges and Nap andMassage Lounges at the terminal.

The terminal also boasts of India’s first tran-sit hotel at any airport. The 93-room Eaton SmartAirport Transit Hotel inside Terminal 3 isdesigned to make unpleasant layovers a thing ofthe past with its intelligent modern design andcomfortable facilities. The hotel is divided intotwo wings with 57 rooms available in the inter-national wing and 36 rooms available in thedomestic wing. The hotel offers several servicesfor the comfort of the passengers viz. innovative‘Aqua Pods’, a unique wash and change facility;‘The Essentials Spa’; a fully-equipped gymnasi-um; free internet access and TLounge offering awide range of tea and alcoholic beverages.

For art connoisseurs, T3 is a visual feast.Renowned artistes like Paresh Maity, M FHusain, Seema Kohli have their works on dis-play at the new Terminal 3.

A massive multi-level car parking right infront of the terminal building is ready to takecare of the parking worries of passengers. Witha capacity of 4300 cars, this is the largest multi-level car parking facility in India with the mostmodern security systems. Additionally, a sepa-rate surface parking area is also available for2200 cars. Park and fly facility is available at thepremium parking area on ground level. Thecounters have advanced Airport ParkingPayment System (APPS) for calculation of usagetime for parking. The parking facility hasClosed Circuit Television (CCTV) cameras andPublic Address (PA) systems.

To ease the approach to the terminal andtravel through the city, an eight-lane approachroad to terminal and a dedicated high-speedMetro line from the city centre has been com-pleted on a fast track mode. Now, Delhi’sdomestic as well as international travellers cancheck-in at the metro stations on the AirportMetro Express Line and take a smooth 20minute ride to Terminal 3.

DIAL’s commitment to excellence alsoshines through the renovation of T2 that wasrefurbished and modernised in 2008. The firstchange visible at the new look terminal was thedoubling of entry points: from four to eight.Immigration counters, the second and biggestbottleneck at the airport, also witnessedimprovement. The number of counters went upto 52. DIAL also introduced inline baggage han-dling system and passengers would not have toget their luggage X-rayed before check-in now.Removal of the old machines also increasedspace at the congested terminal and DIALinstalled seats at the check-in area also for pas-sengers coming much before their flights.

In DIAL’s vision, the modernisation of theterminals alone was not sufficient. DIAL under-took the construction of Terminal 1D beyond itsscope of work. Enhanced terminal capacityserved as a much-needed relief to the passen-gers. The total area available at T1B was around18000 sq m over which was increased to 42,000sq m at T1D. The number of check-in countersrose from 32 to 80; the number of boardinggates went up from 7 to 16. Commercial areaavailable at 1D stood 3050 sq m from 700 sq mat T1B. Car parking that was a perennial prob-


DELIGHTINGPASSENGERS: A viewof the shopping andretaurant facilities inTerminal 3.

DELHI

The terminal also boasts of

India’s firsttransit hotel atany airport. The93-room EatonSmart AirportTransit Hotel

inside Terminal 3is designed to

make unpleasantlayovers a thing

of the past


lem earlier with a capacity of 500 cars wasincreased to over 1650 cars.

In the departure check-in area, an addition-al 2,500 sq m of space was added to increase thenumber of check-in counters. The terminal nowfeatures 100 check-in counters, from 78. Thesecounters allow airlines to process passengersfaster.

If revamping T2 was a mammoth task, theconstruction of T3 from scratch was no meanfeat. To construct such a massive terminalbuilding, thousands of tonnes of steel and con-crete was used; 18000 metric tonnes of struc-tural steel has been put in building the roofalone. About 100,000 sq m of curtain wall hasbeen imported from China and 110,000 sq m ofgranite has been imported from Bahrain forflooring. 170,000 sq m of carpet material hasbeen taken from Brintons, the world leaders incarpet manufacturing, for a luxurious lookinside the terminal. The material has beenimported from UK and later fabricated at Pune.

A massive project of this magnitude neededcareful planning for not just the material andmanpower for building the structure but forlandscaping and beautification as well.Landscaping an area of 70-acres outside the ter-minal and 10000 sq m inside the terminal build-ing was a mammoth task. Numerous varietiesof plants, trees and shrubs were planted keep-ing in mind the aesthetics, ease of maintenance,growth pattern and colours of flowers duringthe flowering season of Delhi. By the end of thelandscaping work, more than a million treesand plants will be planted. Numerous waterfountains are already visible near the terminal.

Within a year of commencement of opera-tion, T3 had been awarded the LEED ‘GOLD’rating by the Indian Green Building Council forgreen buildings in recognition of its environ-ment- friendly features. It has also become thefirst airport in the world to be certified for ener-gy management systems to latest ISO 500012011 standards.

Delhi Airport has made the passenger cen-tral to its development and modernisationprocess. But it also aims to be the cargo gateway

of India. The cargo terminal is undergoingmodernisation in a phased manner. To beginwith, a second terminal has been introduced.The operations of both the cargo terminals havebeen handed over to world-class companies inorder to ensure that the services provided atIGIA meet the best standards. The modernisa-tion work of the terminal is being carried out ina phased manner. DIAL also has plans fordeveloping a Cargo Village to expedite cargooperations at Delhi Airport.

Ever since IGIA began participating in theACI-ASQ customer satisfaction benchmarkingprogramme in 2007, its scores have steadilyincreased. From being at the 101 position in2007 (the lowest among the 101 participatingcountries), it has jumped to the sixth positionamong 186 participating airports in 2011.Service has become central to the airport’s oper-ations and this is reflected in the scores. DIALcarved a vision of being among the world’s top10 airports by 2011 and achieved it by dint ofsheer collaborative effort, planning and execu-tion for spearheading a service-sensitive cultureacross the IGIA community. For 2009, IGIAirport was awarded Asia-Pacific’s MostImproved Airport Award with a 33 per centincrease over the scores of 2008. In 2010, it washonoured with the ACI Director General’s spe-cial recognition award. With an overall annualscore of 4.73, the ranking in its category of 25-40mppa (million passengers per annum) is secondbest in the world.

The service quality also received a fillipwith initiatives from the DISHA Academy ofService Excellence. The academy initialised itsfunction by streamlining the processes andbringing lucidity in the work profile of differentrole holders by documenting the scope of theirrespective profiles. The academy’s scope isdivided into two broad spectrums: training andsustenance. The agenda is to drive the aware-ness about the ASQ vision across the entire air-port staff and instill the pride of being associat-ed with the national asset of the country.DISHA trains the entire staff and infuses soulinto the functioning of the airport.

To instil a sense of airport communityamong the employees an initiative, ‘Sanyukt -IGIA Parivar ‘ has been launched for the pur-pose of getting all workers from the grassroots’level to department heads together. This aims toinculcate a feeling of bonding and most impor-tantly, the pride of association, for greaterprogress and higher achievement. The vision isto provide an environment which inculcatespride, drives inclusive growth and makes IGIAthe best place to work.

The airport has taken rapid strides in a shortspan of time by undertaking a mammoth taskand executing it well. It has now set its sights on2014 to achieve the highest number of AirService Quality ratings and be Number 1 byJanuary 2014.


A massiveproject of this

magnitudeneeded careful

planning for not just the

material andmanpower forbuilding the

structure but forlandscaping and

beautification as well

ON THE MOVE: Fog orshine, IGIA keepsplanes on the move.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2GHIAL

ALWAYS A BETTER CHOICE


HYDERABAD IS ONE OF THE FASTEST-GROWING CITIES AND THE SIXTH-LARGESTMETROPOLITAN AREA IN THE COUNTRY. WITH ITS CENTRAL LOCATION, THE CITY’S AIR-PORT SERVES AS A HUB FOR DOMESTIC PASSENGERS, INTERNATIONAL PASSENGERSAND CARGO TRAFFIC AND OVER THE YEARS, IT HAS CONSTANTLY STRIVEN TO RAISE ITSBAR IN PROVIDING QUALITY FACILITIES FOR ITS USERS.

ADDING MORE FACILITIES: An artist’s impression of the upcoming retail area at Hyderabad airport.

Modernising any institution ororganisation has become anunavoidable phenomenon. In linewith this concept, airports in Indiahave gone on a modernization

spree over the past six years since a modern out-look symbolises progress and success. The RajivGandhi International Airport (RGIA) inHyderabad, operated by GMR HyderabadInternational Airport Ltd (GHIAL), was con-structed to present a completely modern instal-lation to this city of pearls, and to the country.Incidentally, RGIA is India’s first Greenfield air-port to be operational under the public-privatepartnership (PPP) model.

The swanky RGIA, designed by HongKong-based architects Winston Shu andGudmund Stokke from Norway, is located atShamsabad, about 40 km from the city. The

entire campus with the terminal and peripheralsis set on 5495 acres of land and boasts of a worldclass passenger terminal, cargo hub and pharmazone, Aerospace Park, MRO facility, five starhotel and more.

An airport needs to differentiate itselfuniquely and offer different services. GHIAL atRGIA try to achieve this through seamless con-nectivity, transfer process and world class air-port facilities.

Gone are those days when air travel was anunfulfilled dream. With the influx of low costcarriers and an air route map spreading to everycorner of the country, RGIA also has spread itsconnectivity to various domestic and interna-tional destinations bringing the world closer forpassengers. Hyderabad is within two hours offlying time to all major Indian metro cities and3-5 hours of business and leisure destinations


GHIAL

An airport needs to

differentiateitself uniquely

and offerdifferentservices.

GHIAL at RGIAtries to achieve

this


across the Middle East and South-east Asia.Currently, Hyderabad is connected to 24

domestic destinations by six airlines. It is con-nected to the whole of India including cities likeAgartala, Bhubaneswar, Bhopal, Hubli, Indore,Jaipur, Lucknow, Nagpur, Rajahmundry,Tirupati, Trivandrum, Varanasi, Vijayawadaand Vishakhapatnam, etc. Also, Hyderabad isconnected to 16 international destinationsacross South-east Asia, Middle East, Europeand North America. Around 125 flights areoperated by 13 airlines, per week.

In the contemporary world, where all busi-nesses have a consumer-focused approach,GHIAL has also developed a B2C marketingstrategy for RGIA. The airport is the first inIndia to have initiated marketing the airport asa product through ‘Fly via Hyderabad’, aunique programme of its kind. With this,GHIAL intends to establish Hyderabad airportas South and Central India’s gateway and hubof choice.

Due to the strategic location of Hyderabad,there is a considerable amount of saving in theflying time and operating cost for carriers fromthe city. The south-central location ofHyderabad also reduces the flying time to anyof the regional cities by 15-20 minutes, in com-parison to Bangalore or Chennai.

The programme which was flagged off inAugust 2011, has been receiving good responsefrom Pune, Nagpur, Mangalore, Raipur,Vijayawada, Vishakhapatnam, Rajahmundry,Aurangabad, Madurai and Bhubaneswar.GHIAL also plans to launch the programme atother Tier 2 and 3 cities in south and centralIndia. This will provide better flying options forpassengers in the region to different interna-tional and domestic destinations.

RGIA is also better connected to cities with-in Andhra Pradesh and the bordering states. Atpresent, passengers can fly to 15 regional routesin south and central India. This enables multipleflight options for passengers round the clockout of Hyderabad.

GHIAL is also continuously working withairlines to offer more air connectivity andimprove passenger experience at RGIA. Themain focus of the airport is:

Enhance regional connectivity Improve and strengthen international con-nectivityEnhance the overall passenger experience

ON A PLATTER BEFORE FLYINGIt’s a fabulous experience for passengers at theRGIA as it serves up a wide variety of food andbeverage and retail options for the convenienceof passengers, and to suit every taste and fitevery budget.

From coffee to pizza, from gourmet cuisinesto fancy cocktails, RGIA has it all. Specialtyrestaurants, international fast food joints, juicebars, ice-cream counters and coffee shops are allwithin easy reach of the passengers. Also onoffer is a wide variety of Indian cuisines andbrands in the food court, appropriately called“Flavors of India”: from north Indian thalis toHyderabadi biryanis to south Indian dosas, it’sall there. As an added dash, passengers can alsotaste famed Indian street foods. Recently, thetrue icon of Hyderabad baking “KarachiBakery”, has opened its outlets at the domesticand international departure areas in the airport.

As for shopping, RGIA provides a widerange of products with value for money con-cept. Retail options include liquor, tobacco, per-fumes, cosmetics, branded apparel, souvenirs,fashion accessories, books, music, jewellery,footwear, flowers and gifting. To make theseavailable to all, outlets are stationed in the car-park, the meeters and greeters area, apart fromthe arrivals and departures areas.

SHOP DUTY FREEAt the RGIA, customer satisfaction is at the heartof Hyderabad’s Duty Free (HDF) shopping expe-rience. It is also the most preferred destination toshop with the assurance of “Best Prices Always”,when compared to other duty-free shops world-wide including the Middle East. RGIA has intro-duced incredible product promotions, the bestshopping deals and reinvented stores to providewith a fantastic shopping experience.

Any passenger departing or arriving at theRGIA can shop at the duty-free with tax waiversproviding substantial savings of up to 15 percent or more.


RGIA boasts of a4,260 mt runway

and recentlyinaugurated anew parallel

runway which is3707 mt longand Code-E

aircraftcompliant; thusbecoming the

first GreenfieldAirport in the

region with tworunways. This will

help RGIA toprovide 24x7uninterrupted

flight operations.

VALUE-ADDITION: (L-R) A view of thelounge area; and,controllers busyhandling airportoperations.

Rajiv Gandhi International Airport,Hyderabad, developed India’s firstmodular integrated Cargo facility

spread over 14,330 sq mt with a capacityto handle 150,000 MT annually. ThisTerminal is also home to India’s onlydedicated pharmaceutical handling zone“The Pharma Zone”.

With a favourable investment climatein Andhra Pradesh -- home to India’snew sunrise industry, pharmaceuticals --the airport has grown at a CAGR of 16per cent while India’s overall airfreightvolumes were at 11.2 per cent.

The airport handles dedicatedfreighter aircrafts including B747-400,MD-11, AN-124, IL-76, the largestfreighters currently operational globally,offering connectivity to all major regionsof the world including Africa, Europe,USA , Middle East and Asia Pacific.

RGIA was the first airport operator inthe country to identify the need for spe-cific solutions for the pharma industryand the launch of India and the region’sfirst and only dedicated “Pharma Zone”in January 2011 was with a view to offercustomers best-in-class solutions. Thefacility has a capacity to process ship-ment throughput of more than 33,000tons per annum offering a truck dock toairside temperature-controlled environ-ment. Lufthansa approved this as a

“World Class Facility” and nominatedHyderabad as its key hub in South Asiafor transportation of pharmaceuticals.

The presence of a dedicated freighteraircraft parking apron with a 24 x 7 securi-ty CCTV coverage has also helped RGIAoffer one of the best-in-class globallybenchmarked solutions for airfreight.

RGIA is also home to India’s only air-port-based FTZ (Free Trade Zone) withinthe 250 Acre Multi-purpose SEZ. It isbeing developed to facilitate the fastgrowing logistics trade and will allow itsusers to Warehouse, Distribute, Tradeand Value Add goods and services forcustomers. Common-user Bonded andUnbonded Warehouses are being devel-oped for 3PL players to store and processtheir shipments helping them managetheir supply chain more efficiently.

The Road Feeder Service (RFS) whichconnects Hyderabad to other major citiesin India offers efficient options for air-freight considering the congestion preva-lent in major gateway airports. Coupledwith Hyderabad’s ‘geo centricity’ and thefuture rollout of GST, the RFS solutionsis expected to play a major part inimproving supply chain and helpingdecongest the other major gateway air-ports in India and realising RGIA’svision of being the Logistics Hub ofIndia and South Asia.


GHIAL

While air freightvolumes in India

have grown at a CAGR

of 11.2 per cent,RGIA recorded a 16.1 per centCAGR handling

48,000 tonnes between

April andOctober 2011

CLEAR WINNER: Cargo terminal at Hyderabad airport has been hailed as the best in the country.

Top of the line for cargo


Flyers can discover an amazing variety ofexciting products and deals at HDF. One can getfabulous deals on fragrances, cigarettes, choco-lates, liquor, and more and be spoilt for choicewith luxury brands. A walk into the brand newstore at the International Departures will bowlflyers over. HDF has exciting promotions thatare currently running, giving the perfect reasonto shop.

RELAXING FUNRGIA is India’s only airport with its own racingtrack and literally welcomes all those who havepetrol flowing in their veins! Zip around the 750m track in karts ranging from the 7 bhp modelfor beginners to the ultra-powerful 28 bhpmodel which can cross the 100 mph mark. Thetrack provides transit passengers and meetersand greeters a fun way of whiling away sometime between journeys. The track is one of thesafest in the country and the safety parametersare approved by FMSCI (Federation of MotorSports Club of India). A national standard track,it is technically the most challenging track in thecountry and what is most important is that it isoperational 24X7.

Apart from Go-Karting, passengers can alsohold their nerves at simulator zone, remote con-trol car racing, zorbing, net cricket and paintball target shooting.

FOR SPIRITUALLY-INCLINEDGHIAL has been working closely with AndhraPradesh Tourism Department. It has a tie-up forthe Jet Airways Tirupathi package and recently,SpiceJet also signed an agreement with AndhraPradesh Tourism Department on a similar dar-shan package for passengers.

CATERING TO ALL POCKETS The Novotel RGIA is located a mere five min-utes from the airport and approximately 35minutes away from the city centre with ease ofconnectivity and access. Built on five acres ofbeautifully landscaped area, the hotel is con-temporary and features 305 spacious roomsconsisting of 11 suites, 53 Premier rooms and241 Superior rooms.

The airport also has 13 Business ClassLounges with services that include BusinessCenter, Baggage Hold, Shower, Napping areasand Massage services. There are three VIPlounges located at the Departure, Arrival and atthe Remote gates on the ground level.

The Plaza Premium offers passengers a spe-cial lounge with nap and shower facility atRGIA, which provides a comfortable place forpassengers to relax before or after a flight.Flyers can avail of a wide choice of food andbeverages here. The lounge is located oppositethe car park and below the airport village area.It comprises 28 rooms with showers and a TVeach, a lounge with seating capacity for 44, twomeeting rooms, a business centre, four shower


The airporthas 13

Business ClassLounges

with servicesthat include

Business Center,Baggage Hold,

Shower, Nappingareas andMassageservices

T he Rajiv Gandhi International Airport(RGIA) has been adjudged as thethird best airport in the world in the 5-

15 MMPA category in Airport ServiceQuality by Airports Council International(ACI). The Hyderabad Airport, led byGMR Group, has been ranked ahead ofglobal contenders such as Abu Dhabi,Adelaide, Geneva, Cape Town, Hamburgand London Luton Airports.

RGIA, led by the GMR Group, scoreshigher than its last year’s ASQ ratings.While in 2010, the airport scored 4.51 over-all, 2011 score led the Hyderabad Airportto 4.57 in the 5-15 million passengers perannum category. Year-after-year RGIA hadconsistently raised its standards and hasmade significant progress since 2009 whenthe score was 4.44.

Recently, the Rajiv GandhiInternational Airport (RGIA) has startedthe second runway. The new parallel run-way, 3707 mtrs long, is Code-E aircraft(such as A340/B747) compliant. The firstrunway is 4260 mtrs long. GMRHyderabad International Airport Ltd(GHIAL), the operator of RGIA hasobtained clearances by DGCA in order tomake this runway operational, making itthe first Greenfield airport in the regionwith two active runways. HyderabadAirport has now an edge over other air-ports in terms of runway maintenance,according to industry experts. With theactivation of runway, RGIA can now con-tinue flight operations uninterruptedlyduring the regular main runway mainte-nance of Tuesdays.

Speaking on the occasion, VikramJaisinghani, CEO-GHIAL , said, “An air-port’s foremost responsibility is toimprove facilities for passengers and offerthem a convenient and comfortable tran-sit. We are happy that RGIA excelled in allmajor parameters under ASQ ratings.RGIA has also initiated innovative pro-grammes like Volunteer Service for pas-senger facilitation, Installation of Photokiosk, Introduction of international retailbrands etc., which already have drawnattention and praised by passengersthrough Feedback Forms available at theairport. We are working hard to makeHyderabad the best airport in the regionand are pleased that our perseverance hasborne results.”

RGIA is the third bestairport in the world

rooms, a massage room with four seated mas-sage chairs, TV viewing area and a 24-hour bar.

For the benefit of others, there are goodoptions available at the airport lodge situated atthe Passenger Transport Center (PTC), where allthe RTC buses from the city and other districtswill be halted. The rooms and dormitory facili-ties are very cheap at the lodge.

MORE FACILITIES WITHIN To facilitate passenger convenience, there are130 check-in counters and 16 self check-in coun-ters for passengers carrying only cabin baggage;46 immigration counters: 23 departure, 22arrival and one transfer; four-level in-line bag-gage handling systems.

RGIA also provides four types of transferdesk: domestic to international, international tointernational, domestic to domestic and interna-tional to domestic.

In addition, the airport provides four conve-niently located prayer rooms (namaz), babyrooms and smoking lounges within the passen-ger terminal building.

Porter services are available at arrivals anddepartures at both domestic and internationalterminals. For the elderly and physically chal-lenged, there are wheelchair facilities and freebuggy services.

A Lost and Found Counter has been set upby RGIA, in case any passenger has mis-placed/lost his or her belonging at the airport.

MEDICAREApollo Hospitals has provided the MedicalCentre that is equipped with a 24-hour pharma-cy and 17-beds. There are well-trained doctorsand paramedics available 24x7, to serve as anemergency treatment centre for passengers/visi-tors. It also serves as an important partner in dis-aster management, with stand-by ambulancesfitted with advanced life-saving equipmentwithin the airport premises.

CONVENIENCE UNLIMITED Radio Taxi services at the RGIA are provided byleading service providers for the convenience ofcustomers. These are air-conditioned cab servic-es with charges payable on the basis of meterreading at the end of the journey. In addition,there are car rental services, providing servicesfor passengers arriving at the airport.

The Aero Express is a non-stop airport shut-tle service between the airport and many impor-tant destinations located in the city. These areAC coaches offering secure, safe travel and allthis along with value for money. AndhraPradesh State Road Transport Corporation(APSRTC) operates many city bus services tothe airport from important locations.

For the benefit of passengers from the dis-tricts, APSRTC runs direct bus services betweenthe airport and districts such as Karimnagar,Warangal, Nizamabad, Korutla, Metpally,

Nirmal, Armoor, Raichur, Tenali, Guntur,Rajahmundry, Razole and Vijayawada.

RGIA FEATSACI ranked RGIA as World No.1 airport fortwo consecutive years, 2009 and 2010, in 5-15million passengers category. It was alsorated as world No 5 in 2009. For 2011, RGIAimproved its rating and ranked world No 3in the 5-15 million category.RGIA is the first airport in the world to beawarded LEED Silver Rating for its eco-friendly design.Airport Environmental Performance of theYear 2009 by CAPA.

Certificate of Merit in the General CategorySector for the National Energy ConservationAwards - 2011.Conde Nast Traveler India Award for‘Favourite Indian Airport 2010’.Skytrax World Airport Awards 2010 for ‘BestAirport India’.Certification of ISO-10002:2004 Customersatisfaction - Guidelines for ComplaintsHandling. RGIA was awarded ISO 9001:2008 (QualityManagement System), ISO 14001:2004(Environment Management System) andOHSAS 18001:2007 (Occupational Healthand Safety Management System) certifica-tion.RGIA voted as one of the seven wonders ofHyderabad in Times of India contest.Routes Airport Marketing Award for twoconsecutive years (2010 and 11).ORBIS Award 2008 for Corporate SocialResponsibility.RGIA won Best Gardening Award atHyderabad Festival organised byDepartment of Horticulture, APGovernment, for two consecutive years in2011 and 2012SATTE (South Asia Travel and TourismExchange) awarded RGIA as the BestPerforming Domestic Airport in SATTE-2012.The Government of India awarded theNational Tourism Award to Rajiv GandhiInternational Airport, Hyderabad under theBest Airports category for 2009-10 and2010-11.


RGIA alsoprovides

four types oftransfer desks:

domestic tointernational,

international to international,

domestic to domestic and international to

domestic

GHIAL

WELL-ORGANISED:Firefighting vehicleslined up at the airport.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2MIAL


MIAL AIMS TO PLEASEDESPITE ITS GEOGRAPHICAL LOCATION, THE CHHATRAPATI SHIVAJI INTERNATIONALAIRPORT HAS EXCELLED IN PROVIDING TOP-OF-THE-LINE SERVICES TO ITS FLYERS. INTHE LAST FIVE YEARS, THE AIRPORT HAS MOVED FROM ONE ACCOLADE TO ANOTHERFOR PROVIDING THE BEST SERVICES AND FACILITIES.

T he year 2006 was a great milestone inthe history of airports in India. MumbaiInternational Airport Pvt. Ltd. (MIAL),a joint venture between GVK (one ofIndia’s largest infrastructure develop-

ers)-led consortium (74 per cent) and AirportsAuthority of India (26 per cent), was awardedthe mandate for modernising and upgradingMumbai’s Chhatrapati Shivaji InternationalAirport (CSIA) in February 2006.

MIAL’s vision is to transform CSIA into oneof the world’s best airports that consistentlydelights customers and be the pride of Mumbai.One of the biggest challenges for MIAL has

been CSIA’s location: it is in the heart of the cityand is landlocked. Additionally, MIAL under-took the modernisation process while the air-port was still operational and continues to do sotill date.

In the last five years, MIAL has initiatedseveral steps for increasing airport capacity. In2007, within just a year of taking over opera-tions at CSIA, MIAL opened a new DomesticArrival Terminal at 1B as a result of which 65per cent of the domestic arrivals shifted fromTerminal 1A to 1B. In fact, Terminal 1B in itself,the International Terminals 2B and 2C andTerminal 1A have been refurbished consider-ably over a period of time in the last few yearsresulting in expansion of capacity to meet theincrease in passenger traffic. A brand newDomestic Terminal 1C connecting 1A and 1Bwas unveiled in April 2010 as well.

CSIA is one of India’s busiest airports hav-ing recorded passenger traffic of 29.1 million in2010-11, along with cargo traffic of 670,235tonnes. To cater to the stupendous growth inpassenger traffic, MIAL as an airport operatorhas always tried to understand passengerbehaviour closely and addressed their require-ments on an ongoing basis.

With a clear focus on passenger conven-ience and comfort in the long term, there havebeen a number of changes at CSIA such as addi-tional check-in counters, faster immigration,free wi-fi, new retail options for duty-free shop-ping, better housekeeping, improved signages,fast-food kiosks, better kerbside management,and smoother traffic flow.

MIAL is currently implementing a masterplan that has been designed to have an inte-grated passenger terminal at Sahar with state-of-the-art infrastructure and facilities to cater topassenger traffic of 40 million per annum.


MIAL

CLASS EXPERIENCE: Inside view of the terminal; and(inset) a coffee shop.

MIAL’s vision isto transform

CSIA into one of the

world’s bestairports


PASSENGER FACILITIES AND SERVICES E-Ticket Printing Kiosk/Self check-in kiosks:MIAL introduced e-ticket printing kiosks out-side all the domestic departure gates at CSIA. Itwas the first Indian airport to introduce thisfacility. The e-ticket printing enables passen-gers to avoid long queues outside airline ticketcounters and print their e-tickets prior to theirdepartures. There are also 39 self-check-inkiosks at the Domestic Terminal and 35 at theInternational Terminal.

Social Media: MIAL announced the launchof its social media initiative for CSIA andearned the unique distinction of being the firstand only airport in India to go live on socialmedia with a dedicated Facebook page andTwitter handle.

Faster and efficient immigration process:CSIA has been recognised as one of the fastestairports in the world with reference to theimmigration process it follows. CSIA hasaround 78 separate immigration counters, freephotograph facility and separate interviewrooms for Tourist Visa on Arrival.

Retail: CSIA’s convenient shopping areasprovide everything passengers need before andafter their flights. Passengers can choose toshop from an array of top of the line fashion,latest gizmos to books, handicrafts and sou-venirs, which are all available at CSIA.

Terminal 1C, which opened in 2010, has anarea of approx. 10,000 sq ft of retail space andboasts of prominent F&B outlets such as CoffeeBean and Tea Leaf and Ultra Bar. Passengerscan also shop at a range of premium stores such


More convenience at theIntegrated TerminalThe terminal will have a totalfloor area of nearly 439203 sq.mtrs spread across four levels.Besides its unique architecturaland design concepts, the terminalwill be extremely passenger-friendly, and will raise the level ofthe much-acclaimed ‘CSIA travelexperience’ to a new high’.Aspiring to be the new Gatewayto India, in every sense of theword, T2 will soon host a uniqueexperience for every traveller andvisitor to this vibrant city.

World-class architecture andpassenger facilities184 check-in counters 700,000 SF of retail space, F&B,lounges and travel services 32 fixed-link boardingbridges/66 passenger boardingbridges Parking space to accommodate5,000 cars Three-km, six-lane dedicatedaccess road through WesternExpress Highway

CSIA has around78 separateimmigration

counters, freephotographfacility and

separateinterview roomsfor Tourist Visa

on Arrival

ART AT ITS BEST:Beautifulstructures give Mumbaiairport a unique identity.


as Ethos, William Penn, Parcos, Swarovski,Croma, Media Mart, Bombay Store, Lilliput andHidesign. CSIA boasts of a veritable duty-freeshopping paradise where passengers canchoose to shop for must-haves, such as gadgets,watches, liquor, designer wear and other pre-mium gift items. The Duty Free area showcasessome of the best brands in the world which areavailable at CSIA at a much lower rate, com-pared to other airports.

Wellness offerings: High-end travellers canrelax and recharge their senses prior to board-ing their flights with a number of spa options tochoose from such as the O2 spa, Mantra Spaand My Foot Reflexology.

General Aviation Terminal: CSIA was alsothe first airport in India to have a self containedGeneral Aviation (GA) terminal for handlinground the clock domestic and internationalflight operations for private and NSOPs.

Lounges: The international terminal sportsa number of airline lounges including those runby premium carriers such as Lufthansa,Emirates and British Airways. Additionally theLufthansa lounge can be accessed by passen-gers flying an airline that belongs to the StarAlliance group

Food and Beverage: There’s something foreveryone at CSIA with its numerous restau-rants, cafes and food courts, providing a widevariety of F&B offerings to suit ones palette. Atthe dedicated 11,750 sq ft food court at Terminal1C, overlooking the airside, passengers can graba quick meal while waiting for their flight. Ithosts a variety of Indian and international out-lets including KFC, Domino’s, Idli.Com, CurryKitchen, Cafeccino and Mad over Donuts.

The Arrivals area of Terminal 1B also hostsa number of F&B outlets that passengers canchoose from. On the other hand, the interna-tional terminal also offers passengers a varietyof F&B options. In addition, CSIA offers thebusy and on-the-go business travellers a newbreed of stylish airport bars and lounges at boththe domestic and the international terminals.These include amongst others the chic andfriendly Bombay Blue, the filmi yet upscaleIIFA lounge bar or the extremely hip and trendyNoir Bar that was launched in 2010. The optionsat the domestic terminal include the classicUltra bar at the domestic terminal 1C or theSignature bar at domestic terminal 1B or theFoodies bar at domestic terminal 1A. Thedomestic terminal recently also played host to anew set of bars, the swanky RC Bar which wasunveiled by the Royal Challengers team,Bengaluru and the upscale Good Times Bar.

Awards and Accolades: Over the years,MIAL’s efforts in modernising CSIA have beenacknowledged with many awards and acco-lades.

CSIA was rated the third best airport glob-ally and the second best airport in India forairports in the 25-40 million passengers perannum (mppa) category, by ACI for 2011 Rated the best airport in India for airportsabove 15 million passengers per annum(mppa) in the ASQ (Airport ServiceQuality) survey carried out by AirportCouncil International (ACI) and ranked4th amongst all airports globally in the 15-25 mmpa category in the second quarter of2010 CSIA’s proposed Air Traffic Control Towerwon the ‘Autodesk Hong Kong BuildingInformation Modeling (BIM) Award 2009’Frost & Sullivan Asia Pacific Aerospace &Defense Awards — ‘AeronauticalExcellence Airport of the Year’ in 2008.


CSIA offers thebusy and on-

the-go businesstravellers

a new breed ofstylish airport

bars andlounges

at both thedomesticand the

internationalterminals

QUICK CHECK-INS: Aview of flyers check-ing in at Mumbai.

Chhatrapati Shivaji International Airportwas ranked the third best airport in theworld by the annual Airport CouncilInternational (ACI). It also received theAirport Service Quality Awards for 2011.CSIA was also rated as the second best inIndia, for airports handling 25-40 millionpassengers per annum (mppa).

The survey was conducted across 180airports in the world. G V Reddy, manag-ing director of Mumbai InternationalAirport Pvt Ltd (MIAL), said the awardshowed improvement in service quality atthe airport. "This award is a reaffirmationof our vision to transform CSIA into one ofthe world's best airports that consistentlydelight customers and be the pride ofMumbai. It is gratifying to note that wereceived this award last year in the 15-25mppa category and again this year in the25-40 mppa category," Reddy said.

The survey, undertaken by ACI, wasconducted with passenger feedback onfliers' experiences from their arrival tilldeparture. CSIA catered to 29.1 million pas-sengers between April 2010 and March2011, a MIAL spokesperson said.

Honour for Mumbai

Benngaluru is one of the fastest-grow-ing cities in the world; it attracts hugeamounts of investment in the fields ofIT, machinery, BPO, biotech, medicaltourism and educational institutions.

The growth of the IT sector has been the majorinfluencing factor in growing international traf-fic from the city. Early this year ‘Lonely Planet’rated Bengaluru as the third favorite city in theWorld for 2012. Bengaluru was rated afterLondon and Muscat as was called the undis-puted Elvis of South Asian megacities for itswell-known flamboyance.

Bengaluru, due to its geographical position-ing, lies exactly in the middle of South Indiahence the average distance between all theregional airports is lower in comparison tomajor South Indian airports such as Chennaiand Hyderabad. The average flying timebetween all South Indian airports fromBengaluru is less than 90 minutes and has astrong case to develop into a strong hub airport.

The passenger profile at Bengaluru is alsovery attractive. The domestic passenger trafficcurrently amounts to around 83 per cent of thetotal traffic and the remaining are internationaltravellers. ‘The Silicon Valley of India’ sendsmore than 50 per cent of its international pas-sengers to the US and Europe, thereby identify-ing them as knowledge workers and IT profes-sionals. In domestic aviation, more than 60 percent of travellers are on business while the oth-ers are on personal or leisure.

As an airport, Bengaluru InternationalAirport Limited (BIAL) provides excellent serv-ice to its passengers through a range of busi-ness-excellence programmes. The ability toachieve value for the customers is driven bytheir focused strategy and rigorous attention tooperational efficiency. The company has pio-neered various initiatives and practices and setbenchmarks for the industry.

The airport is focused on customer experi-ence — of both the airline as well as the passen-gers. The airport delivers to its customer air-lines and passengers a high-quality experience

FLOORING FLYERS, BIAL-STYLE


BIAL

THE HEIGHTENED CUSTOMER EXPERIENCE SAYS IT ALL. FROM THE VERY BEGINNING,THE BENGALURU INTERNATIONAL AIRPORT HAS INSISTED ON DELIVERING A HIGH-QUALITY EXPERIENCE BACKED BY ASSURED SERVICE LEVELS AND HIGH RELIABILITY. ADETAILED LOOK AT THE INITIATIVES TAKEN BY THE AIRPORT AUTHORITIES TO ADOPT ANINCLUSIVE APPROACH OF INVOLVING THE LOCAL COMMUNITY WITH THE AIRPORT ANDITS EXPANSION PROJECT.

INNOVATION AT ITS BEST: Teenager checking in at an e-kiosk at Bengaluru Airport.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2BIAL

backed by assured service levels and high relia-bility. One of the steps that the BengaluruInternational Airport, took while aiming to givepassengers the ultimate in travel experience, isinvesting in state-of-the-art IT and communica-tion systems to ensure faster processes andresponsiveness. The airport deployed commonIT infrastructure that has multiple advantagesfor all stakeholders utilising it. It also has the first and only AirportOperations Control Centre (AOCC) for collabo-rative decision making among the airport’s keystakeholders. This AOCC serves as the nervecentre of the entire airport with real-time databeing fed into it from diverse departments andfacilitating collaborative decision making. Theairport operator’s choice of a baggage handlingsystem was also made on similar lines.

CHECKING IN The airport is equipped with 53 check-in coun-ters in a straight line, facing the main entranceof the departure hall in the terminal building.The fully equipped, Common Use Terminal

Equipment (CUTE)-enabled counters have beendesigned based on the feedback of all airlinesoperating to and from Bengaluru and are linkedto a fully automated baggage-handling system.The CUTE service provider at BengaluruInternational Airport is RESA CREWS.

SELF-SERVICE FOR BUSY TRAVELLERThe airport, in keeping with the ‘Simplify theBusiness’ initiative of IATA, endeavours todevelop and support various alternative formsof check-in that is meant to de-congest airports.Business travellers are busy-people and travelcomprises a major portion of their workinglives. Travelling mostly with only hand bag-gage, time for these passengers is precious. Tofacilitate these passengers, the airport has 18Common Use Self Service (CUSS) kiosks locat-ed in the terminal building right in the path ofthe passenger flow, from the departures entryto the check in counters.

The airport received the IATA platinum cer-tification for being the first 100 per cent BCBP


The airportdeployed

common ITinfrastructure

that has multipleadvantages

for allstakeholders

utilising it

INSIDE-OUT: Aninside view of anaerobridge at BIAL.

compliant airport in India. Both the CUSS andCUTE facilities at the airport are BCBP com-plaint.

SETTING STANDARDS IN BAGGAGE DELIVERYThe Objectives of baggage handling, safety,security, efficiency and reliability are metthrough intelligent deployment of state-of-theart technology, stakeholder collaboration, clear-ly defined processes and most importantly acommitted workforce.

Over the last three years, the airport has

achieved a zero bag-loss count and consistentlyhigh standard of baggage delivery for bothdomestic and international bags. As part of itsphilosophy of continuous improvement, theprocesses are constantly improved, employeesare retrained several times and technology isupgraded so as to remain on top of the game.

While the passenger reaches the baggagecarrousel faster due to the short walkways, along wait for the baggage could be disappoint-ing. Usually arriving passengers take about 7-10 minutes to reach the baggage claim area atBengaluru International Airport. Hence, it has


BIAL

In an effort to reduce the carbon footprint and increase energy efficiency,Bengaluru International Airport Ltd.

(BIAL), recently announced its partnershipwith Karnataka State Biofuel DevelopmentBoard (KSBDB), for its operations at BIAL.

Marking another landmark in a seriesof many firsts for the airport, BIAL haschalked out plans to migrate operations ofits ground vehicles to biofuel supplied byKSBDB. With this, BIAL has become thefirst airport in the country to adopt biofuelin its operations.

"We have consciously taken this deci-sion to implement and develop BengaluruInternational Airport into a green facilityand reduce greenhouse gas emissions.Deploying biofuel reduces carbon foot-print, in comparison to usage of fossil fuelsand thus is a responsible way to meet ourenergy needs. We are proud to have part-nered with KSBDB in its efforts to create anenabling and sustainable environment,"said Sanjay Reddy, Managing Director,BIAL.

BIAL, as part of its ongoing effortstowards making the airport energy effi-cient, has taken up several green initiatives

in the past including water conservationand management. While these initiativeshave been recognised and awarded at vari-ous industry forums, BIAL is committedtowards adopting such best practices andset benchmarks across all functions at theairport.

The adoption of biofuel by BIAL was astep in the right direction and would go along way to further the biofuel pro-grammes and policies at the state level, saidY B Ramakrishna, Executive Chairman,KSBDB.

HUSTLE ANDBUSTLE: (L-R)Glimpses of the pas-senger conveniencesat Bengaluru Airport.

First airport to adopt biofuel for its vehicles

USHERING GREEN: (L-R)Hari Kumar, VP, Engineering& Maintenance, BIAL; Y BRamakrishna, ExecutiveChairman, KSBDB;Abhishek Mudram, Director(Manufacturing), Tetrahead;Hari Marar, President(Operations), BIAL; A KMonappa, ManagingDirector, KSBDB andBhaskar Bodapati, Director(Finance), BIAL flagging offa bio-diesel vehicle.

Continued on Page 98


The expanding aviation sector in India is evidentfrom the growth seen in the sector during thepast few years. According to the Indian BrandEquity Fund (IBEF), India is the 9th largest civilaviation market in the world. Further, with 45

million domestic passengers, it is ranked fourth in termsof domestic passenger volumes.

From 2004-05 to 2010-11, the air passenger vol-umes saw a 16 per cent compounded annual growth rate(CAGR). Domestic passenger growth at 17.6 per centCAGR was higher than internationalpassenger growth of about 12 per centCAGR. To support this growth, there isa need for augmenting airport infra-structure in India. As a result, the Indiangovernment has been pushing fordevelopment of airports on a Public-Private Partnership (PPP) basis.

The Central Government, however,can contribute to this goal only to a lim-ited extent. Of the 454 airports andairstrips in India, only 97 are owned andoperated by the Airports Authority of India (AAI). The restare under the purview of the states, which have a majorrole to play in meeting the challenge of expanding Indianairport infrastructure.

Karnataka is one of the few states that has success-fully risen to this challenge and has been at the forefrontof developing airports on the PPP model across the state.It has not only spearheaded the development ofBangalore International Airport but also aimed at devel-oping several Greenfield airports across the state.

Further, it has been actively involved with AAI for

expanding/modernising existing airports within the state.Karnataka has also undertaken steps to encourage theairline sector in the state. Under its Vision-2020 pro-gramme, the state plans to become a model for promot-ing aviation. Short-haul aviation is expected to be givena major boost in the state by ensuring the presence of anairport/airstrip in every district of Karnataka.

BENGALURU INTERNATIONALAIRPORT

Bengaluru International Airport was thefirst-ever Greenfield airport set up in thecountry on Public-Private-Partnershipmodel through the pioneering initiativeof the State of Karnataka. Developed ata cost of `24,700 million, the PPP proj-ect brought all stakeholders - privateparties, AAI and the Karnataka StateGovernment -- together to make aworld-class airport in Bangalore a pos-sibility.

In 2004, a concession agreementwas signed between the Bangalore International AirportLtd. (BIAL) and the Government of India, where the for-mer was given exclusive rights to develop, design,finance, construct, operate and manage the airport for 30years with automatic renewal for another 30 years. Tofacilitate development of the airport, several measureswere taken by both the State and Central governmentsthat included granting exclusivity within a radius of 150km, providing 4,008 acres of land on lease basis, powerand water supply up to the battery limits of the airport andimproving the connectivity from the city to the airport. The


SPOTLIGHT

WITH WIDESPREAD SUPPORT FROM THE STATE GOVERNMENT FOR A SLEW OF PROJECTS,KARNATAKA IS TRAILBLAZING THE AVIATION SECTOR IN THE COUNTRY.

Karnataka: Leading the Indian

Aviation Revolution

Greenfield Airport initiatives by Karnataka Location

Cost (in `Million)

Status

Shimoga 2300Being implemented by Regional Airport-Holdings International Limited (RAHI), a joint

venture between ITNL and Comet Infra-Developments Private Limited (CIDPL); 653acres acquired, expected to start small aircraft landing by September 2012

Gulbarga 1100Being implemented by Regional Airport-Holdings International Limited (RAHI), a joint

venture between ITNL and Comet Infra-Developments Private Limited (CIDPL); 692acres acquired, expected to start small aircraft landing by July 2012

Bijapur 5650Awarded to MARG Aviations in 2008. 727 acres of land has been acquired and being

handed over to the developer.

Bellary 1410 Awarded to MARG Aviations in 2010.

Hassan 6000 Awarded to Jupiter Aviation in 2007. 536 acres of land has been handed over.

Total Investment 16460

“Investments worthnearly `16,460 millionare estimated to flowinto the Greenfield

airport sector”DR RAJ KUMAR KHATRI, IAS

SECRETARY TO GOVERNMENT INFRASTRUCTURE DEVELOPMENT DEPARTMENT,

GOVERNMENT OF KARNATAKA

Karnataka Government alsoprovided financial support inthe form of an interest-freeloan of `3500 million andequity of `500 million for theproject.

The airport became oper-ational in May, 2008 and ispresently handling around 12million passengers perannum. At present, this is the3rd largest airport in the coun-try in terms of the passengertraffic. The airport was voted‘Best Airport India’ by SkytraxWorld Airport Awards inCopenhagen, Denmark onMarch 30, 2011. With theacquisition of major shareholdings from the original pri-vate promoters during 2009-11, the GVK Group becamethe largest shareholder amongst the private promoters.To meet the growth in passenger traffic, BIAL has takenup expansion of the facilities including the existing termi-nal building at a cost of `14,790 million, which is likely becompleted by late 2012.

DEVELOPMENT OF OTHERGREENFIELD AIRPORTS The Karnataka government has not stopped at develop-ing the landmark airport project at Bangalore (seeGreenfield airport initiatives by Karnataka). It has takeninitiatives to develop airports at Greenfield sites to under-line its commitment to build airport infrastructure in thestate. It has various Greenfield airports under variousstages of development under PPP. Investments worthnearly `16,460 million are estimated to flow into theGreenfield airport sector.

DEVELOPMENT OFEXISTING AIRPORTSApart from Greenfield air-ports, Karnataka is alsoworking towards mod-ernising and expanding itsexisting airports andairstrips. One of the majorprojects being undertaken isthe upgradation of HubliAirport at a cost of `1950million. The state govern-ment is facilitating the landacquisitions and nearly 615acres has been acquiredand 586 acres of land hasbeen handed over to AAI.

Other airports have been planned for modernisation orexpansion via a Memorandum of Understanding withAAI (see Modernisations plans).

DEVELOPMENT OF GREENFIELDAIRSTRIPSIn line with its Vision-2020 programme, the state hasdecided to develop small airstrips in districts that do nothave an airport: 11 sites for Greenfield airstrip develop-ment have been identified.

PROMOTION OF REGIONAL AIRLINESAirport development can be a failure without the sup-port of airlines and Karnataka has taken some steps topromote short-haul aviation. The state has slashedsales tax on the Aviation Turbine Fuel (ATF) from 28per cent to 4 per cent for airlines landing and taking offwithin the state to promote regional airlines inKarnataka.

HELIPADSTo promote heli-tourism across the state, Karnataka hasbeen setting up helipads at various locations. There arealready 38 helipads in Karnataka and 7 have beenrecently constructed including some at locations withtourist importance like Jog, Chikkamagalur, Udipi andChitradurga. Work on 10 new helipads at Hampi, Belur,Kollur, Dharmastala, Bijapur, Hornadu, Bangalore (3locations), and Shringeri is on.

POLICY SUPPORTKarnataka’s infrastructure development, including air-ports, is supported by the Infrastructure Policy-2007which was framed to expand and upgrade infrastructurein the state with PPP at its core. The InfrastructureDevelopment Department was set up by the govern-ment for streamlining the process of appraisal andapproval of various infrastructure projects. The highlightof the infrastructure policy was the implementation ofthe “Single Window” system.

Incentives include entry tax exemption, stamp dutyconcessions, financial guarantees in some cases, pro-vision of land at concessional rates and viability gapfunding. Karnataka government is also working on final-ising the greenfield airport/airstrip policy for facilitatinginvestment in the airports sector.


SPOTLIGHT

LocationCost (in `Million)

Status

Mysore (expansion)

420175 acres of land handed over to AAI for

development, MoU signed.

Bidar 320Temporary terminal building has been con-structed and approval of MoCA is awaited

for flight operations.

Karwar 320

There is a naval base and Civil Enclave isplanned to be developed and will be takenup during second phase expansion of port

by Naval Authorities.

Belgaum 1500370 acres of land has been acquired for

expansion of the Airport and handed over toAAI. MOU has been signed on 19.01.2012.

Hubli 150Expansion planned, 615 acres of land has

been acquired.

TRANSFORMING AVIATION: Runway constructionin progress at HubliAirport.

RAHI

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2BIAL

been mandated that the ideal time for baggagedelivery of the first bag should be betweenabout seven minutes, in order to ensure thatbags are available on the belt before arrival ofthe passengers.

BUSINESS CONTINUITYMANAGEMENTBusiness Continuity Management (BCM) isabsolutely critical in any business today, soalso with an airport. Bengaluru InternationalAirport Limited is the first airport in theregion to have implemented BCM as one of itsmainstream activities. BIAL’s BCM is a holisticand ongoing management process intended toidentify potential hazards of varying size andseverity that threaten the organisation/busi-ness. It provides a framework of buildingresilience by developing and maintainingappropriate response plans as well as cost-effective alternative resources to safeguard the

interest of key stakeholders, reputation, brandand value-creating activities.

Through this process, BIAL has undertak-en extensive risk-assessments, various impactanalyses, and recovery planning of its everyprocess spread across the organisation. Theentire BCM of the airport went throughrepeated internal auditing and regressivethird party audits viz. KPMG and BSI toensure that the BCM is adhering to interna-tional standard requirements.

INCLUSIVE APPROACHBIAL welcomes active involvement in the air-port’s development. Soon after announcingthe expansion of the existing Terminal 1, theairport operator launched a campaign named‘Smile Bengaluru’. This was an opportunityfor the city’s residents and airport stakehold-ers to share their thoughts and ideas on howthey would like to see the expanded T1. Afterall, it is their needs that BIAL serves. Thelaunch of this campaign is testimony to theirinclusive approach of involving the localcommunity with the airport project. Theseideas and suggestions were considered toshape the future of Bengaluru’s expandingairport.

With this campaign, Bengaluru Airport isthe first airport in the country to seek publicopinion on what they would like at their air-port. A campaign strongly promoted on thesocial-media platforms as well as outdoor-city hoardings, radio and the airport spacesitself includes a large audience. All one need-ed to do was to log onto the Smile Bengaluruwebsite and post their ideas and require-ments. All comments were transparent andviewable by all, readers could even vote foran idea that they liked.


BIAL is the firstairport in the

region to haveimplemented

BCM as one of its

mainstreamactivities

STRONG FOUNDATION:(Above) Flyers checkinge-kiosk at the airport;(top) outside view of theairport.

Continued from Page 95


INFRASTRUCTURE

INDERJIT SINGH

PICTURE PERFECT: Check-in counters at Terminal 3 in Delhi airport.

T he lyrics “Big isn’t beautiful” by KingAdora band have been an all-time sensa-tion. But in the case of some airportswhich have emerged on the Indian avia-tion landscape in the last decade, the

myth has been busted. Big can be beautiful, afterall! The airports in Delhi, Mumbai, Bengaluruand Hyderabad developed in the last decadethrough the PPP route and several others byAirports Authority of India (AAI) stand proud-ly as a testimony to this phenomenon.

Thanks to certain bold initiatives of thegovernment and active involvement of privateentrepreneurship, the activity, which hithertohad been confined within the fiefdom of thehighly-regulated public sector was opened to

the private sector through the PPP mode. Andthe results are evident. Several world-classairports have already been developed in Indiausing the PPP model and this trend seemslikely to continue. It is not just the emergenceof new swanky passenger terminal buildingsand associated paraphernalia but the overallairport facility-compliant to the level of pas-senger facilitation, safety, security and opera-tional standards expected of modern world-class airports. Several other busy airports inother metropolitan cities in India still sufferfrom the demand-capacity syndrome — ter-minal buildings apparently bursting at theirseams during peak hours, and craving forrehabilitation and expansion.

Indian airports:The emerging big pictureTHE PRESENT TURBULENCE IN THE GLOBAL AVIATION INDUSTRY NOTWITHSTANDING,AVIATION ANALYST INDERJIT SINGH ENVISIONS A BRIGHT FUTURE FOR INDIAN AIRPORTS.

Several world-class airportshave already

been developedin India using thePPP model and

this trend seemslikely to continue


Indian aviation is currently celebrating its100 years of existence and has reasons torejoice on its track record; even though, dur-ing this period, it has witnessed several upsand downs, yo-yoing between extremes ofcruising and not-so-cruising heights — punintended!.

AFTERMATH OF ECONOMIC SLUMPLike any other sector of the economy, the glob-al aviation industry is presently passingthrough a turbulent phase with ramificationon development of airports and airlines-andIndia is no exception. Airports and airlinesworldwide are facing escalating operationalcosts, revenue growth constraints and aninvestment crunch. As I see, the airports andairlines are the inseparable two sides of thesame coin and cannot be considered in isola-tion — their facing diametrically in differentdirections, both literally and unfortunately inreality, notwithstanding.

However, given the time-tested built-inresilience and tenacity in the system, theIndian aviation, supported by the ongoingindustry reforms and initiatives wouldbounce back with vengeance, as it has in thepast, whenever it had encountered some set-backs. It is my strong conviction that despitethe ongoing challenges, the Indian aviationwill carry forward and upwards too.

I have made an attempt to take stock of thesituation, chronicling the meteoric rise andsteep fall, flag issues of concern, outline the

reforms and initiatives in the pipeline, andenvision possible solutions for sustainedgrowth of the industry in the years ahead.

INDIA AVIATION: PAST PERFORMANCEThe aviation market in India has witnessed aphenomenal growth in the last decade. It hascome a long way since private players were firstgiven permission to enter the sector in 2004, inthe post-liberalisation regime. The pace ofgrowth has been especially spectacular duringthe last five years as the Indian aviation indus-try has grown from 46th to the 9th largest posi-tion in the world. It is set to become one of thetop four markets by 2020. Realisation hasdawned that aviation plays a crucial role in theeconomic development process through itsvirtue of “rapid global connectivity” boostingtrade, tourism and commerce.

As the economy grows, disposableincomes rise resulting in growth in thepropensity to travel by air. Flying thusremains no longer the prerogative of a fewprivileged, but an option for an increasinglybroader section of society and India has amassive population base to support. With anexpanding consumer base, India presents oneof the fastest-growing aviation markets in theworld with potentially enormous opportuni-ties for investment. At 0.04 air trips per capitaper annum, India stands far behind the devel-oped countries with more than two trips percapita per annum, indicative of a substantialgrowth potential.


With anexpanding

consumer base,India presents

one of thefastest-growing

aviation marketsin the world with

potentiallyenormous

opportunities forinvestment

TRIPS PER CAPITA: 2010

(Source: Airbus Industry* Passengers originating from respective country)

AVIATION AND ECONOMIC GROWTHCivil aviation sector with its integral organs ofairports, airlines and aircraft have an impact onthe economic growth and development of anation’s economy. As per ICAO estimates, $ 100spent on air transport produce benefits worth$325 for the economy and 100 additional jobs inair transport result in 610 new jobs across themarket. It further postulates that air transportcomponent of civil aviation contributes for over4.5 per cent of global GDP. If aviation was acountry, it would rank 21st in the world interms of GDP, generating $425 billion of GDP.

The Indian government has committeditself to several initiatives, policies and regula-tions to encourage private participation andinvestments in the various infrastructure sec-tors. Of the $130 billion in the 2011-12 towardstransportation sector, $14 billion is budgetedfor the development of Greenfield airports andupgrade of existing airports — a major portionof it would be from the private sector, financialinstitutions and Foreign Direct Investment(FDI).

OPEN SKIESAs per industry estimates India’s airports by2020 will handle more than 460 million passen-gers per annum. In terms of passenger-han-dling capacity of airports, it has grown from 66million in 2001 to 235 million in 2011 and isexpected to touch 450 million by 2020. Duringthe period 2005-2010, $10 billion were investedin airport development in the country and theprivate sector played a predominant role in theprocess. Around 60 per cent of the air traffic ispresently being handled at the four airportsdeveloped under the Public Private Partnership(PPP) and the remaining 40 per cent traffic ishandled at the airports operated by the state-owned Airports Authority of India (AAI).

One of the most significant recent develop-ments in Indian aviation contributing to theupgrading and development of Greenfield air-ports in Tier-II and Tier-III cities has been theemergence of ‘low cost carriers’ (LCCs). From alevel of about 1 per cent in 2003-2004, the LCCmarket share today exceeds 70 per cent of totaldomestic traffic.

Signing of the Open Skies Agreement in2005 between India and the USA was a positivestep in the building of the Indo-US partnershipin the aviation segment leading to rapidincrease of traffic between the two nationsnecessitating improvement of airport securityinfrastructure to meet with the stringent FAArequirements.

India was the fastest-growing domesticmarket in the world in August-September 2011period with 18.4 per cent year-on-year growth(see Growing and how…). Traffic growth inIndian market exceeded the growth rate seen inChina 9.7 per cent and was considerably morerobust than the global growth rate of 3.8 per

cent. According to IATA, India’s domestic avia-tion market expansion has been the strongest inthe world and is pitched to become the thirdlargest aviation market in the world from itscurrent 4th position after US, China and Japan.

Given the strong market fundamentals, therobust rate of growth is expected to continue.Indications are that the Indian civil aviationmarket will register a compound annualgrowth rate (CAGR) of more than 16 per centduring the period 2011-2013. Looking furtherahead, the Indian Ministry of Civil AviationVision 2020 statement envisages a compoundannual growth rate of around 15 per cent in thenext five years.

REFORMS ARE IN THE AIRThe Civil Aviation Ministry has recently agreedto the proposal of allowing foreign carriers tobuy 26 per cent stake in private airlines. Atpresent, India allows FDI of up to 49 per cent inIndian carriers, but foreign airlines are bannedfrom investing in domestic airline industry —the three arguments against FDI by foreign air-lines being security issues, price war and hos-tile takeover. The Working Group on CivilAviation (WGCA) of the government has how-ever, proposed raising the Foreign DirectInvestment (FDI) limit by foreign carriers intoIndian carriers to 49 per cent; in the backdrop ofsome private carriers slipping into a severedebt crisis and several others facing resourcecrunch.

The Indian government has stronglyprotested to European Union (EU) against itsproposal of carbon tax on Europe flights. Withthe current level of aircraft movements, itwould cost India $1-billion a year. The govern-ment has formally lodged a complaint with theEU, terming the imposition as “unfair” tradepractice. It is reportedly considering requestingIndian carriers withhold emissions data as partof its opposition to the imposition of theEuropean Union Emissions Trading Scheme(ETS) on non-EU airlines or even impose aretaliatory tax on European airlines.

LOOKING AT THE FUTUREIATA in the wake of the current setbacks in theindustry has recently asked the Indian govern-ment to set the aviation industry free by reduc-ing taxes, those on jet fuel in particular, insteadof ‘micro-managing’ the cash-strapped sector.“The service tax on tickets, the high jet fuelprices due to high taxation which account for45 per cent of the Indian aviation industry’s costin comparison with 30 per cent for airlines inother parts, should be reduced or eliminated,”said Tony Tyler, Director General and CEO,IATA.

With the potential of India to become thefifth-largest market in the world in terms ofoverall traffic growth in the next ten years; thefollowing key challenges, according to me,

INFRASTRUCTURE


Signing of theOpen Skies

Agreement in2005 betweenIndia and the

USA was apositive step inthe building of

the Indo-USpartnership in

the aviationsegment


need urgent attention:(a) Private sector investment in the devel-

opment of some airports in the recent pastthrough the PPP route has been about $6-bil-lion. The country would require $130 billionworth of further investment over the next 15to 20 years. The government has thus toevolve an attractive mechanism and packageto ensure a guaranteed ROI to institutionaland private investors. PPP would have to beundoubtedly the vehicle for India’s rapidlygrowing aviation market. The successachieved in Metro airports need to be replicat-ed in Tier-II and Tier-III cities.

(b) In metro cities where the existing air-port cannot accommodate future growth, aSecond airport should be expeditiously devel-oped. The inordinate delay in developingNavi Mumbai is a case in point. Chennai’s sec-ond airport at Sriperumbudur is a welcomeinitiative.

(c) Modernisation of Indian airports willremain a mirage, unless the ATCs are mod-ernised through infrastructure enhancement,appropriate staffing and training.Implementation of an advanced air trafficflow management is a must towards that endto alleviate problems of congestion in air traf-fic.

(d) The low-cost airlines are basicallylow-fare airlines and high taxation preventslowering of air fare. There is an urgent need todevelop airports on low-cost model. Low-costairports will help low-cost carrier furtherlower the air fare.

(e) Airports and airlines must prioritisecollaboration in at least four areas to addressthe major challenges they share: securityprocesses, common-use self-service, new pric-ing models and airport capacity constraints.

(f) Formation of a Civil AviationAuthority (CAA) in place of the DGCA to takeon the regulatory challenges is crucial.

(g) Asia is now the leader in business air-craft purchases with India and China leading.The government through appropriate policiesand regulations must provide support to thisprofitable industry to provide impetus todevelop low-cost-airports.

CRITICAL CHALLENGESThe fundamental drivers of aviation

growth in India remain strong and it shouldemerge as the third-largest market in theworld within ten years. It would be incumbenton the Indian policymakers to quickly realignthe Indian aviation industry with the globalstandards especially in respect of policy, regu-latory and legal framework in a non-restric-tive business-friendly manner conducive togrowth. But this will require important deci-sions in 2012 by government and operatorsalike to position Indian aviation as a safe, effi-cient and a viable transport sector.

(The writer is Head of Aviation URS ScottWilson India, the South-Asia office of the URSCorporation U.S.A. and formerly Airport Directorof IGIA, New Delhi and can be contacted at [email protected])


The paradoxof India’s

aviation sector isthat it serves

one of theworld’s fastest-

growingeconomies

and isposting

double-digittraffic growth

GROWING AND HOW…

(Source: IATA Air Transport Market Analysis)

Domestic passenger growth by country: August - September 2011


HEAD-TO-HEAD ONGROUND HANDLING


GROUND HANDLING

EVERY EFFORT TO IMPLEMENT THE GROUND HANDLING POLICY HAS SEEN A SEE-SAWBATTLE BETWEEN THE GOVERNMENT THAT IS KEEN TO SEE THE POLICY IN ACTION ANDTHE PRIVATE CARRIERS. HOWEVER, THE POLICY COULD SEE IMPLEMENTATION IN JULYTHIS YEAR WHEN THE SUPREME COURT DELIVERS ITS JUDGMENT AFTER HEARING THECASE FOR THE LAST TIME, WRITES R KRISHNAN.

H C

TIW

ARI

Come July 2012, the Supreme Courtwill hear the case of ground han-dling policy implementation. Tillthen the government will maintainstatus quo and domestic airlines will

be allowed to do self-handling.The new Ground Handling Policy (GHP),

announced in September 2007, is on holdagain for the fifth year due to opposition fromdomestic private carriers. The dispute hasentered the final legal phase. The airlines fearthat the policy will take away their control ontheir own carriers in terms of product offeringand differentiation which is their USP besidesputting a question mark on another USP —quicker turn-around of their aircraft which iscrucial for ensuring on-time performance. Itwas when the Union Government took a finalcall to implement the new GHP with effectfrom January 1, 2011, that the private airlinesunder their umbrella organisation Federationof Indian Airlines (FIA) first knocked on thedoors of Delhi High Court and subsequentlyappealed to the Supreme Court when they didnot get relief in the High Court.

The airlines do self-handling such as gen-eral administration, baggage, freight and mailhandling, loading and unloading of aircraft,crew, passenger and baggage and fuel han-dling besides catering services. According toofficial sources, domestic carriers promisedthat they would go along with the newground-handling policy after it was stalledearlier. It was for this reason that theDirectorate General of Civil Aviation (DGCA)notified that the new policy would becomeeffective from January, 2011. The airlines chal-lenged the new GHP in the Delhi High Court.They feared that handing over ground-han-dling functions to independent companieswould take away the airlines’ own control overtheir cost, efficiency, scalability, and manage-ment of ground-support activities. The Centre,on the other hand, feared that allowing toomany personnel on the airport tarmac andother restricted/technical areas could poseserious security risks.

FIA challenged the new Ground HandlingPolicy (GHP) stating it was aimed at overturn-ing the level playing field and would violate


GROUND HANDLING

The new GroundHandling Policy

(GHP),announced in

September 2007is on hold againfor the fifth year

due toopposition fromdomestic private

carriers

ON AGAIN-OFF AGAIN: Groundhandling staff at work in one ofthe busy airports.


Article 19(1) (g) of the Constitution. It alsosaid ground handling was an intrinsic part oftheir operations and remained at the heart ofan airline. But the government quoted thesecurity aspect as being of paramount impor-tance to the whole issue.

It was because of its seriousness and theneed to ensure security that it decided to havea uniform ground handling policy. The securi-ty aspect compelled the government to arguethat it was essential to access latest technologyand manage them. The government represen-tative told the court that it was a matter of factthat Indian aviation had become a target ofinternational terrorism which made it impera-tive on the part of the authorities to take con-trol of ground handling of all flights.

It was mentioned that ground handlingactivity required the presence of a maximumnumber of personnel in sensitive areas of theairports and in view of the security concerns,such activity by each airline on its own wouldnot be allowed. Following this, the Delhi HighCourt lifted the stay on the implementation ofthe four-year-old new GHP. After Delhi HighCourt’s ruling in favour of the governmentand against the FIA, the government said thenew policy would be implemented with effectfrom April, 2011. The High Court directed theprivate airlines to sign up with the recognisedGH service providers at the relevant airports.

Since the policy was announced inSeptember 2007 by the DGCA, it has wit-nessed a see-saw battle between private carri-ers and the government. The latter tried toresolve it in June 2010 when it directed theDGCA to notify the new GHP for implementa-tion with effect from January 1, 2011. That iswhen the private airlines challenged and fileda writ petition against it in the Delhi HighCourt and obtained a stay. The matter washeard and the High Court rejected the writpetition. In its ruling in the first week of March2011, the High Court said the new GHP wouldbe implemented with effect from April 1, 2011.But FIA appealed against the order in theSupreme Court in April 2011.

The FIA has since got a breather as theSupreme Court posted the case for final hear-ing in July 2012. Till then, it has asked the gov-ernment to maintain status quo; that means noimplementation of the GHP and allowing air-lines to do self-handling. The FIA said it hadno issues on that and, in any case, was com-plying with whatever the Bureau of CivilAviation Security (BCAS) wanted.

FIA submitted earlier in the Delhi HighCourt that most of the airlines like the peti-tioners were involved in providing self-ground handling service and even if any of thepetitioners were presently getting theirground support activities through third par-ties, they had the right to conduct self-han-dling. The DGCA notification specificallynoted that there would be no self-handling insix metro airports of Delhi, Mumbai, Chennai,Kolkata, Bengaluru and Hyderabad. FIA said:“Ground handling constituted an integral andinalienable part of any airline’s business.” It isone of the unique selling propositions of theairlines differentiating the services providedby one particular airline over their competi-tors. The ground handling services aimed atproviding a unique and hassle-free experienceto passengers and was akin to providing hos-pitality services. Airlines normally providedself-ground handling services while some air-lines sub-contracted this to the airports or ahandling agent or to another airline. The selec-tion of the sub-contractor was based on vari-ous factors which had to provide efficiency.Undertaking of ground handling servicesitself enabled the airlines to maintain quality,


The DGCAnotificationspecificallynoted therewould be no

self-handling insix metro

airports of Delhi,Mumbai,Chennai,Kolkata,

Bengaluru andHyderabad

GROUND HANDLING

TOUGH ASK: Fuellingof ATF forms an indis-pensable part of theground handlingstaff’s duty.

A LOSS OF JOBSThe FIA, whose membership includes allthe domestic carriers, contended thatmember-airlines could efficiently managetheir ground-handling services of theiraircraft as at present. Moreover, the air-lines would also be forced to retrenchnearly 3,000 workers, who are associatedwith ground handling work, on behalf ofthese carriers all over India. As per infor-mation available with the government, JetAirways has 250 in-house GH staff or onits rolls and outsourced 1000 workers.Kingfisher Airlines had 150 such staff onits roll while it had outsourced 1600 staff;IndiGo had its 46 personnel doing GHwork and outsourced 574 workers,SpiceJet had 80 GH staff on its roll while itoutsourced 470 and GoAir had 54 compa-ny employees and outsourced 250 staff toprovide ground handling to its flightsacross India. In the case of Air India, it had800 workers on its rolls while had another990 on contract or outsourced.

H C

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cost and efficiency of the services provided byit to its passengers.

Significantly, one of the parameters ofjudging an airline’s performance and groundhandling played an important role in it. Forexample, the FIA said in its petition to theDelhi High Court that one of the main reasonsfor voting IndiGo as thebest low cost airlinewas among other things its Ground handlingefficiency. The ground handling included bothramp and traffic handling. In this context, theFIA said should the impugned AAI regula-tions were implemented, then passengers andbaggage handling at the airport terminals andthe traffic services at the airport terminalsincluding passenger check-in could not be per-formed by the private airlines in AAI-con-trolled Chennai and Kolkata airports. Whilegranting applicant airline permission to startscheduled passenger air transport services, therelevant DGCA notification stated airline con-cerned should have “adequate ground han-dling facilities and staff for preparation of loadand trim sheet, flight dispatch and passen-ger/cargo handling. The staff should haveundergone the training and checks as specifiedby DGCA”. Therefore the aforementionedrequirement was one of the pre-conditions forthe grant of licence. The petitioners made hugeinvestment in creating the necessary and high-ly capital intensive infrastructure and where-withal to undertake ground handling servicesto efficiently cater to its airlines operations.

Around this time, the Ministry of CivilAviation directed all airlines to hire their ownstaff to do ground handling at non-major air-ports. But at many smaller airports, the airlinesoutsourced ground handling as it was cheaperto do so. Many viewed this as a direct conse-quence of the FIA’s decision to fight the gov-ernment on the new GHP.

Soon afterwards, the Delhi High Courtrejected the writ and lifted the stay. TheMinistry of Civil Aviation directed the state-owned Airports Authority of India to issue acircular to the six metro airports where theGHP was intended to be implemented. Theaim of the policy was to increase security andsafety at these airports which was questionedby FIA and was turned down by the DelhiHigh Court. Thus, the original policyremained unchanged which required threeground handling agencies in each of the sixmetro airports.

After rejecting the writ, the Delhi HighCourt upheld the earlier decision of theCabinet Committee on Security whichrequired activities such as baggage handling,cargo scanning, taxiing, refuelling and clean-ing among other things of private sector air-lines to be handled by officially recognised GHcompanies.

On April 4, 2011, the Supreme Court heardthe appeal of the FIA against the order of the

Delhi High Court. The apex court issuednotices to the Ministry of Civil Aviation,DGCA, BCAS and other agencies. It howeverdid not stay the March 4, 2011 order of theDelhi High Court and wanted the member air-lines of FIA to immediately sign up with anyone of the three GH companies in the six des-ignated metro airports. The airlines signedMoUs with select GH companies to complywith the Supreme Court directive.

The government faced a tough time in justi-fying its policy of denying private airlines to doself-ground handling and for which it haddirected the private airlines to hand over theirrequirements of ground handling to one of thethree companies in each of the six metro airports.

1. The designated company by the air-port operator either standalone or in JV basedon a revenue-sharing model

2. Air India-SATS JV which got this rolebased on some kind of “Grandfather’s right”or being a state-owned company and hencefully safe from security point of view; and,

3. A third joint venture selected througha bid process conducted by the airport opera-tor concerned . While GMR and GVK handledDelhi, Hyderabad and Mumbai, Bengaluru,respectively, the state owned AAI handlesChennai and Kolkata airport.

The private airlines complied withSupreme Court direction within 24 hours andsigned MoUs with one of the ground handlingcompanies in these six airports as approved bythe DGCA. The Supreme Court, however,asked the government that if the private air-lines had their own services, why should theygo in for services of others? The SolicitorGeneral reportedly observed that ground han-dling had been taken away from private air-lines keeping in view the security concerns.The two judge bench of the Supreme Courtobserved that while it was right for the gov-ernment to make policies, why should it dis-turb something when it was going smoothly?It reportedly observed that government wastrying to bring competent private airlines to a


GROUND HANDLING

The Governmentfaced a tough

time in justifyingits policy of

denying privateairlines to doself-ground

handling and for which it had

directed theprivate airlines to

hand over theirrequirements

of groundhandling

KEEN EYE: Staff over-seeing baggage han-dling operations.

level of incompetence. As per media reports, the government rep-

resentative was even asked if he had travelledby private airlines and how it kept up its tim-ing. It feared that the efficiency of the privateairlines would be killed. It also raised the issuethat if ensuring security was true in six met-ros, then what about other cities like Jammuand Kashmir, Amritsar and even Kochi whichwere left out of the DGCA list?

The Supreme Court had given time for thepetitioners and respondents to file theirresponse. The airlines have maintained thatsuch restriction would affect their ability todistinguish themselves from rivals and renderground-handling equipment worth hundreds

During the November 26, 2011 meetingthe FIA had with the Prime Ministeragainst the backdrop of the Indian avi-

ation industry turning sick, the airline opera-tors, among other issues, raised the issue ofground handling. The members of FIA artic-ulated much of what they had said in boththe Delhi High Court and the SupremeCourt. The crux of what they said was thatthe FIA had no problem with the new GHPbut the member airlines or private carriersshould not be barred from providing self-handling in the six metro airports forsecurity reasons.

It was reported that an important func-tionary of the PMO present at the meeting,after the departure of PM’s earlier PrincipalSecretary T K A Nair, asked if the FIA wouldwithdraw its petition should the governmentfollow the new route as suggested. Though itis not known what happened subsequently,the fact was that the FIA subsequently wroteto the Secretary, Ministry of Civil Aviation, onthe contentious issue of ground handling.

In support of its contention, the FIA saidall domestic carriers in India were subject tostrict control in keeping with the nationalsecurity requirements. For instance, no morethan one third directors of an airlines compa-ny can be foreigners. The Chairman had to bean Indian national and directors could beappointed only after security clearance by theMinistry of Home Affairs. Any violation ofthis condition could attract cancellation of theoperating permit of the airlines concerned.Further, the antecedents of each airlineemployee working at any airport in India areverified by the police and only thereafterclearance was given and a photo-identitycard issued to him which entitled the saidemployee from entering one or more areas ofthe airport depending upon his specificwork.

Significantly, all critical security work of

passenger screening and frisking at the air-ports is undertaken by CISF and the priva-tized airports had already moved to central-ized baggage screening where airlineemployees were not involved. Even the AAIwas moving in that direction and had alreadygiven to Bhadra International its ground han-dling activities in the metro airports ofChennai and Kolkata. It was only duringtimes heightened threats that airline employ-ees performed some secondary checks on thepassengers and which was in accordancewith government directive. Further, airlineemployees at airports primarily aimed toprovide hassle-free check-in facilities toensure that only screened baggage wasloaded on the aircraft, passengers go throughproper security checks by CISF and then arecomfortably escorted to the aircraft. Each air-line tried to excel in these services whichwere more than in the nature of hospitalityand aimed at providing comfort, safety andretention of the customers. It was in this con-text that ground handling formed an integralpart of an airlines’ offering with the primaryobjective of differentiating itself over its com-petition. Therefore, over the years, airlineshired thousands of skilled personnel whohave been trained to deliver quality stan-dards laid down by each airline and onwhich hundreds of crores of rupees has beeninvested in acquiring assets to ensure smoothpassenger handling and safety of the aircraft.

Hence self-handling is the fairest andmost equitable option to create a level play-ing field in which a third party handler willsecure business if it can equal or better bothquality and cost offering of the airlines andalso assist airlines in mitigating its humanresources issues due to such transition.

If the government wants it can retain thenew ground handling policy and at the sametime also allow continuation of self-handlingby private airlines in the six metros.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2GROUND HANDLING


If thegovernmentwants it can

retain the newground handling

policy and at the same time

also allowcontinuation

of self-handlingby private

airlines in the six metros

THE FIA’S STORY

FLYER-READY: International check-in counters at Hyderabad airport.


of crores of rupees useless. The airlines saidthat it would add to the cost of the alreadybleeding industry.

Those wanting development of a strongairport infrastructure believe that the newGHP should be implemented as it is one of theimportant ingredients of a new airport’s busi-ness plan. Those who are airline backers, feelthat an already financially bruised domesticcarriers with falling yields and rising costsneed a breather before implementation can bereconsidered.

A Centre for Asia Pacific Aviation (CAPA)study showed that domestic airlines objected tothe new GHP as they felt awarding theirground handling job to third party groundhandlers would lead to:

a) Loss or dilution of control over servicequality as airlines feel the first point of interfacebetween passengers and airline staff is at thecheck-in counter/gate and induction of a thirdparty on airlines’ behalf will dilute its USP;

b) Airlines stated that they are not tooconcerned about the impact of outsourcingramp activities but were not willing to tradetheir USP, like on-time performance which theyfear could happen as one could not expect thethird party GH provider to treat all the airlinesas their own respective staff do;

c) While airlines doing self-handlingcould cut costs on their own self-handling, thismay not be the case when a third party is doingthe job leading to rise in costs; and

d) Limiting the number of ground han-dlers to three is limiting competition.Incidentally, what an airport operator or aground handler can charge for various groundhandling services is now an important matterawaiting examination and resolution by thenewly set up Aviation Economic RegulatoryAuthority (AERA).

Independent Ground Handlers have stated

that they will make huge investments in GHequipment to enhance service quality. If airportinfrastructure is to suck in a few billion dollarsin investment then it will be a distortion if suchinvestment is not made in GH, a crucial aspectof airport management, that includes a drasticreduction in downtime or turnaround time foraircraft and thereby increase the rate of aircraftmovement. This aspect of airport revenuestream cannot be wished away.

If India needs international standardground handling, investment needs to bemade as introduction of best practices andsoftware-based resource allocation systemswould lead to greater efficiencies in the equip-ment utilisation. For instance in 2010-11,Mumbai Airport had listed an inventory ofmore than 90 ground power units which wasthree times more than for an airport of its size.It is not known if this position has changed. Asfor traditional agencies — be it airlines or oth-erwise — there is over-staffing and the fear ofjob losses and the resulting airport unrest arewhat have been bothering policymakers afterannouncing the ground handling policy.

An important trend for ground handlers inthe context of the Indian market is the rapidgrowth of Low Cost Carriers (LCCs) and simi-lar subsidiaries of full service carriers. Today,LCCs account for nearly 60 per cent of thedomestic market share or even more. Whentheir negotiation position increases it will notbe surprising that they may even demandcompetitive bids from potential GH agencies.At present, since the airlines are allowed self-handling and in case of LCCs, it is beneficialsince it ensures a quick turnaround of the air-craft. The LCCs will not want this compromiseby a third-party agency providing groundhandling and also the cost at which it will beprovided. Should this cost rise, it could crackthe LCC model.


An importanttrend for

ground handlersin the context of

the Indianmarket is the

rapid growth ofLow Cost

Carriers (LCCs)and similar

subsidiaries offull-service

carriers

GROUND HANDLING

GIVING DIRECTION:After a smooth land-ing, all that a flyerwants is quick deliv-ery of his baggage,that is the job of theGH staff.

AIR

INDI

A


I t was not so long ago when travelling inan airline was restricted to a select few inIndia. With only the state-run carrieravailable, people did not have manyoptions. Flying used to be an expensive

affair and train was the most preferred modeof transport for in-country travel. As theIndian economy witnessed a strong surge inthe last two decades, the number of fliersincreased significantly. Rapid urbanisationand introduction of private low-cost carriershelped the aviation industry grow in India.

The nation’s aviation infrastructure, withthe overall growth of the industry, has under-gone a significant transformation. Most of thecountry’s key cities such as Delhi, Mumbai,

Bengaluru, and Hyderabad can now boast ofairports which are truly world class andequipped with best-of-breed facilities. Withsocio-economic development of the nation, it isexpected that more and more such airports willbe established — either through revamping theexisting ones or through greenfield projects.

Today, airports are not just a place for avia-tion activities; they are becoming multimodaltransportation hubs. The end-to-end experi-ence of an air travel is not restricted to the flightonly but also connects to other modes of trans-portation — road, rail, and even sea. To realizetheir full potential as multimodal hubs, air-ports must lead the creation of a “transporta-tion system of systems”. They need to movebeyond physical infrastructure to help inte-grate operational processes and supportingtechnologies between transportation operators,the community and their customers.

The reason for this is that smarter airportsdo not recognise traditional boundariesbetween air and other forms of transportation.Instead of competing with rail, road and water,a new-age airport is a multimodal hub with alarge catchment area that offers regional andglobal air-route connections and helps reduceoverall transportation times and costs. At thesehubs, more passengers and cargo can movemore efficiently, serving more destinations,with increased on-time performance.

However, the multimodal transport sys-tem of a city develops over a period of time.Traditionally, most of these systems work


AIRPORTS IN INDIA COULD PLAN TO BECOME MULTIMODAL TRANSPORTATION HUBS BUTONLY AFTER A “TRANSPORTATION SYSTEM OF SYSTEMS” IS CREATED, COMMENTS INDIRARANI. THAT CAN ONLY HAPPEN IF THESE AIRPORTS MOVE BEYOND PHYSICAL INFRASTRUC-TURE AND DOVETAIL THAT WITH SUPPORT FROM TECHNOLOGIES BETWEEN TRANSPORTA-TION OPERATORS, THE COMMUNITY AND CUSTOMERS.

INFRASTRUCTURE

Turn airports intomultimodal transport hubs

INDIRA RANIInfrastructure

SETTING THEAGENDA: FrankfurtAirport is well-con-nected with highspeed train networks.

FRAP

ORT.C

OM

independently without much of coordination.Creating a multimodal transport system,therefore, is a long-term journey, needs to bedone in a phased manner and requires signif-icant investment. There are five maturity lev-els for creating an intelligent multimodaltransport system:

Level 1 — Single Mode: This is the mostprevalent stage with a single-mode planningwith little coordination between various trans-port providers. This lack of coordination leadsto limited data collection and integration. As aresult various systems work in an ad hoc man-ner and respond to situations individually.

Level 2 — Coordinated Modes: In thislevel, a transport vision is articulated, with asingle overarching regulator in place that haslimited planning and management powers.Most transport systems start focusing on datacollection, with periodic analysis. However,this analysis often does not translate intoactionable. Network and incident responsestill managed mostly by individual modes.

Level 3 — Partially Integrated: Theestablishment of an integrated multimodaltransport authority is essential in this level.With coordinated demand management meas-ures, the system is able to ensure real-time col-lection of multiple data source with high-levelanalysis. The system also builds an automatednetwork and incident response systems.

Level 4 — Multimodal Integration: Asthe systems become more mature, authoritiesare able to build an integrated corridor-basedmultimodal planning. The system featuresdynamic demand management schemes andreal-time multimodal coverage for most corri-dors. The data analysis becomes real-time andexhaustive, enabling authorities for automat-ed pre-planned multimodal incidentresponse.

Level 5 — Integrated Regional Multi-Modal Planning: This is the highest level of amultimodal transportation system. It covers awide region and ensures continuous system-wide performance measures with dynamicpricing. With system-wide real-time multi-modal data collection, integration and analy-sis, it enables dynamic network optimisationand incident response.

As governments and civic authorities aretrying to provide better citizen-centric servic-es, more and more multimodal transport sys-tems are coming up across the world. Airportsare playing a pivotal role in this effort, withthe number of international and domesticfliers on the rise across the globe. It is estimat-ed that the number of passenger trips willreach a staggering 7 billion in 2020 from 2.2billion in 2009.

To improve the traveller and customerexperience, airports can start by aligning airroute networks and schedules with those ofother kinds of land transportation. Passengers

and cargo shippers can then make informedplanning and purchasing decisions about eachtype of transportation they use. Airportsshould also adopt the actions of currentworld-class airports by expanding land andsea travel networks to offer new destinations.

Frankfurt and Paris are examples of air-ports that are connected with high-speed trainnetworks. Amsterdam and Hong Kong benefitfrom the existence of large seaports thatstrengthen the airports and vice versa withadditional traffic volumes and development oflogistics and trade areas. Most of these citieshave been able to well integrate their airportswith the larger transport system.

In India, multimodal transport systemshave not evolved much due to various factors.Lack of collaboration between authorities thatrun these transport systems and disparity inthe technologies used, have often created chal-lenges in the integration. For example, the ini-tiative to create a single smart card that can beused both in the metro and in buses in Delhi isyet to be implemented, while it was plannedsometime ago. Once implemented, it will helpcommuters save time and ensure ease of travel.

However, there are examples of excellence,as well, although a few. The metro rail net-work to Delhi airport is an apt demonstrationof how multiple transport systems can be inte-grated efficiently. As the travellers are able tocheck in at the metro station and submit theirluggage at the counter, the airport is able toexpand its reach beyond the physical infra-structure and provides differentiated experi-ence to its customers.

With an ever-increasing traffic, multimodaltransport system is the way to go and cityauthorities will have to develop it, sooner orlater. Airports are critical in this initiative andwill play an increasingly important role withtime. They will become larger centres for eco-nomic activities, a what they are today.

(The writer is Vice President, DistributionSector, IBM India/South Asia.)


With ever-increasing

traffic,multimodal

transport system is the way to go and

city authoritieswill have

to develop it,sooner or later

VEHICLES OF CHANGE:Airport Express whichconnects Delhi Airport tothe city has providedwider reach and connec-tivity to passengers.

INFRASTRUCTUREDELHIPASSION.COM

It is time to take stock of the aviation legacyof the nation. When India became aSovereign Democratic Secular SocialistRepublic in 1950, there were no govern-ment-owned or government-operated or

“IAS-administered”, perpetually loss-incurring,airline in the vicinity. There were at least nineprivate carriers operating in the domestic civilaviation market (4 in Calcutta, 3 in Bombay, 1 inDelhi and 1 in Hyderabad) and a total 744 air-craft registered with the air services regulators.Calcutta’s Air (India) Ltd Managing Directorwas K K Roy; Bharat Airways Ltd was owned byindustrialist scion B K Birla; HimalayanAviation Ltd was owned by its chairman HisHighness Major General Mahabir Sham SherBahadur Rana and Kalinga Air belonged to lateChief Minister Biju Patnaik, an ace pilot in hisown right. The three Bombay based airlineswere Air India International Ltd with J D Choksias its Managing Director; Air India Ltd had J RD Tata as its Chairman and Air Services of IndiaLtd was owned by its Chairman, Tulsidas


FROM DAKOTAS TO DREAMLINERS…


HISTORY

INDIAN AVIATION HAS COME A LONG WAY, WRITES ABHIJIT BHATTACHARYYA, AS HETRACES THE HISTORY FROM THE 1950S TO THE PRESENT. THE HITS AND MISSES INTHE LONG JOURNEY NOTWITHSTANDING, THE INDIAN AVIATION MARKET HASPOTENTIAL AND WITH MORE JUDICIOUS MANAGEMENT OF MAN AND MACHINE,THERE IS NOTHING THAT CAN HOLD IT BACK.

Era of DC-3s1950s

744aircraft registered

with the air servicesregulators

in the 1950s

J D ChoksiWas ManagingDirector of Air IndiaInternational Ltd

JRD TataChairman of Air IndiaLimited

Vishnu Hari DalmiaOwned and operated IndianNational Airways Ltd. Wasalso its Chairman

Kilachand. In Hyderabad’s Begumpet airportwas located Deccan Airways Limited owned byM K Vellodi and in New Delhi was housed theIndian National Airways Ltd, owned and oper-ated by its Chairman Vishnu Hari Dalmia.

Indian air transport in the early 1950s wasessentially for the rich, high and mighty and forthose who owned and operated the airplanes.The scenario, however, changed overnight withthe “nationalisation” of the private carriers intoIndian Airlines Corporation in 1953. Till then, ofthe 110 aircraft operated by the nine carriers, 72twin-engine, 21 seaters were US Douglas DC-3Dakotas. First flown on December 18, 1935, DC-3first was commercially operated by AmericanAirlines in June 1936. With a maximum take-offweight of 11,440 kg (11.44 tonnes), the sturdy DC-3 had an unusually long operational range of itstime, with 1510 miles (2,420 km) thereby makingit the most widely used airplane at the end of theSecond World War. Reportedly, on January 1,1951, there were over 500 DC-3s of all types incommercial services all over the world.

On the ground, the nascent civil airports ofIndia were primitive and too few to make for atruly public air transport system for a vastIndian landmass. Runways of all four Metro(city) airports (Delhi, Calcutta, Bombay andMadras) were 6000’ each. Nagpur had thelongest runway with 6420’ and only 14 foreignairlines (Air France; British Overseas AirwaysCorporation; Air Ceylon; KLM; Orient Airwaysof Pakistan; Pan American; Qantas; Trans WorldAirlines; Ethiopian Airlines; Iranian Airways;Philippines Air; Siamese Airways; NorwegianBraathen’s SAFE and Scandinavian Airline sys-tem operated to, from and through India.

The Indian private operators, however,appear to have had the flexibility to operatetheir domestic flights up to India’s neighbour-hood airports such as Karachi, Dacca, Bangkok,Singapore, Chittagong and Rangoon. And totop it all, Indian civil aviation had at least adozen flying clubs, patronised by the high andmighty to train potential pilots in the art of fly-ing. Thus, Delhi-based Aero Club of India,


HISTORY

Indian airtransport

in the 1950s, however, was essentially for

the rich, high and

mighty and for those

who owned and operated

the airplanes

Dreamliner

1000Planning Commission projects

India could add about 1,000 planesand 250 helicopters over next five

years due to rising demand

1985Air India Boeing-747 crashed killingall 323 passengers on board overIreland waters on June 23, 1985

1993The second non-fatalAirbus-300 crash onNovember 15, 1993

2010Air India Express crashes at MangaloreAirport on May 22, 2010killing 158 people

2012

Biju Patnaik Owned Kalinga Air and evenpiloted its planeB K Birla

Owned BharatAirways Ltd


under the banner of Tata Industries Ltd, wasfounded 1928, as the pioneer association of theIndian flying clubs.

Bengal Flying Club, Barrackpore; DelhiFlying Club and Bombay Flying Club were allfounded in 1928 as patronage of some of themcame from celebrities. Hind Provincial Club,established in 1947, with centres at Allahabad,Kanpur and Lucknow, had Raja BajrangBahadur Singh of Bhadri as Managing Director.Hyderabad State Aero Club, founded 1936 atBegumpet aerodrome, had L C Jain, ICS, as itsSecretary. Orissa Flying Club, founded 1946-1947 at Bhubaneswar airport, Secretary was theredoubtable Biju Patnaik, the future ChiefMinister of that state and one of the most dis-tinguished ministers in independent India’sfederal government.

Surprisingly, there also existed an array ofcivil aviation publications in the form of“Airline Guide”; “Airways Magazine”; “Travellers’air guide”; “Journal of the Aeronautical Society ofIndia”, etc. thereby developing a healthy intel-lectual and knowledge-based platform for theaerial route to the uninitiated also.

Understandably, Indian civil aviation hascome a long way from 6000’ to 12000’ runwayand from propeller-driven Douglas Dakota tothe state-of-the-art twin-jet, widebodiedDreamliner of the Boeing. There, however, isthe flip side of the story. There has been a con-sistency in the Indian sky since 1947. India hasalways used foreign/Western aircraft as animporter and has never succeeded in eithermanufacturing or co-producing civil passengeraircraft making its aviation market a highlycapital-intensive, resource-crunching enter-prise from the beginning.

Another intriguing and important aspect ofthe Indian aviation's growth saga is that it hasoften faced a nagging and stark deficiency inflight safety in both the international anddomestic sectors. One of the earliest shockscame in 1955 when Air India's Lockheed-builtSuper Constellation Kashmir Princess plungedinto Indonesian waters killing all but two onboard. Reportedly, sabotage (planted bomb)

spoilt the flight safety of Air India. Another highprofile tragedy struck with the crash of AirIndia's Boeing 707 Kanchanjhungha, over MontBlanc, Switzerland in January 1966 killing all;among them was Dr. Homi J Bhabha, the father-figure nuclear scientist of India. In May 1973,with the crash of Indian Airlines Boeing 737 atthe approach of Delhi airport was killed MohanKumaramangalam, a prominent minister of thegovernment. With the plunging of an Air IndiaBoeing 747 in the Arabian Sea on January 1,1978, soon after the take-off from Mumbai run-way 27-09, focus once again shifted to the poorflight safety record and equally poor-handlingof the crisis situation of the pilots of Indian car-riers. Nevertheless, the supreme crisis-momentfor Air India arrived with the mid-air disaster ofAir India 182 Boeing 747 killing all 323 passen-gers on board over Ireland waters on Sunday,June 23, 1985.

In the domestic sector also, the loss of thetwin-engine French Caravelle of IndianAirlines over Mumbai airport runway inAugust 1976 bode ill for the flight safety ofIndian civil aviation. Significantly, when thebrand new French Airbus-320 (VT-EPN) crash-landed just short of Bengaluru runway onWednesday, February 14, 1989, it once againexposed the poor-quality piloting by CaptainsGopujkar and Fernandez and a lamentable lackof understanding and coordination of, andbetween, the deceased pilots of the crash. Thetrend continued with the crash of a Boeing 737of Indian Airlines into the hills lying on the out-skirts of Manipur's Imphal runway on Friday,August 16, 1991 killing all owing to CaptainHaldar's misjudgement and inability to followthe advisory, navigation and instruction of theAir Traffic Controller in a mountain terrainaround the airport. With the latest Air IndiaAirbus 320 accident at Mangalore airport inMay 2010, the pilot's failure to coordinate, syn-chronize and judge the flight envelope and thecritical /serious deficiencies of overall cockpitmanagement system in the Indian skies onceagain came to light.

Earlier, however, the worst civil aviationmid-air disaster of all times had occurred overDelhi on Tuesday, November 12, 1996 whentwo airborne craft (one ascending and the otherdescending) of Kazhakhstan and Saudi Arabiamade a fatal and catastrophic mistake by ignor-ing the air traffic controller of the host airport.The crash also brought into light the need toupgrade the air navigation and controller andcontrolling system in the ever-increasingcrowded skies of India.

Amidst all these flight safety lapses, howev-er, one aircraft, the twin-engine, twin-aisleAirbus 300 created a record of sort by not killinga single person during its entire operational lifefrom 1976 to 2010 in the Indian sky. The IndianAirlines fleet of 11 Airbus 300s flew fromSoutheast Asia to West Asia and made daily


Anotherintriguing and

important aspectof the Indian

aviation’s growthsaga is that it

has often faced a nagging

and starkdeficiency inflight safety

on bothinternational and domestic

sectors

HISTORY

EARLY BEGINNINGS: Tata Airlines’ oldoffice building.

landings in the ten domestic airports of Delhi,Kolkata, Mumbai, Chennai, Guwahati,Thiruvananthapuram, Bengaluru, Hyderabad,Ahmedabad and Srinagar and came out cleanon flight safety and human life-saving machinein the Indian sky. Two models of this craft oper-ated in India; Airbus-300 B-2 (maximum take-offweight 142 tonnes) and Airbus-300 B-4 (maxi-mum take-off weight 165 tonnes). There weretwo major accidents also resulting in completewrite off of the craft; yet both emerged non-fatalaccidents. It first happened in September 1986during take-off run on the tarmac of Chennaiairport. Having virtually reached the V1 and V2speed for the “nose wheel up” to be airborne,the pilot, hearing the fire-on-board alarm, abort-ed the “full-load” craft to a screeching haltthereby completely wrecking the Airbus 300 onthe edge of the runway. The second non-fatalAirbus 300 crash of November 1993 was morespectacular as the Hyderabad air traffic con-troller refused the call of the pilot to land owingto “poor visibility”, the repeated distress call ofthe mechanical fault and failure of the flightnotwithstanding. In fact, the plane flew low andslow thereby consuming more fuel than expect-ed and force landed in the rice field off Tirupatiairstrip. Once again the aircraft was written offbut the full load of 250 passengers emergedunscathed. The end-result nevertheless wasanother accident and repeat of flight safety fail-ure.

What now is the future? What ails India'scivil aviation market and industry? Certain grimrealities need to be faced and resolved today ifIndia sincerely wishes to be counted upon as theeconomic powerhouse. With the arrival of sever-al private carriers post-1991 liberalisation havealso arrived the ills of a market-economicswhich drive enterprise for profit. Unfortunately,being a service industry with high fuel costs,capital and labour intensive, the dividing linebetween loss and profit lies in a razor-thin edgein the civil aviation market, which even in thebest of times is a highly cut throat competitiongame and is price-sensitive to the consumers ofIndia. It is a case and question of efficient pro-fessional management when it comes to servingthe people in a service industry. Regretfully, butrealistically, Indian civil aviation market so farhas not enhanced its reputation for professional-ism and efficiency. Not that neighbouring coun-tries have done any better than India. But India's122 crore population cannot be compared withanyone else, except China. And China appearsto have gone miles ahead of India at present.One instance would suffice to prove the point.Ever since the advent of private players in theIndian sky 20 years ago, at least 10 carriers haveclosed shop thereby putting India in a bad light.What happened? Why and how did East-WestAirlines, Damania, City Air Link, Modiluft,Sahara Airlines and NEC Airways start withbang and end with a whimper? Answer is; rank

bad management; total lack of professionalismand a poor understanding of the dynamics ofaviation economics; cutting corners in flightsafety; gross over-expenditure; poor aircraftacquisition programme and thinking it to be aglamour world enterprise only.

The scenario is there for all to see. Air Indiahas gone bust owing to successive bad deci-sions taken by the civil servant-minister duos.Sahara Air has been gobbled up by Jet Airways,which, in turn, is tottering in the aviation aswell as financial markets. Deccan can now befound as footnote in the aviation history bookof India and Kingfisher Airlines has become aclassic case study of “How to destroy a high fly-ing and dream debut made by an airline of, andfor, good times”? The short of the long story ofIndian civil aviation today is simply manmadechaos and confusion which may be difficult tosolve but not impossible to achieve.

Amidst all this, however, there are a fewprofessional carriers which are silently consoli-dating position and expanding their opera-tional sphere. They seem to have understoodthe economics of aviation and the art of main-taining a balanced man-machine ratio vis a visthe load factor and the passenger flow in thesectors to which they operate. Although it is tooearly to predict as to how far and how muchthey are likely to go and gain, their performanceas on date is definitely a cause for appreciationin an otherwise gloomy market of the world ingeneral and the sluggish Indian mart of civilaviation in particular.

And finally, as Air India and the Governmentof India wait with bated breath for the inductionof Boeing-787 Dreamliner in 2012 itself, one doeslook back with a smug sense of satisfaction thatperhaps not all is lost as yet. From the DouglasDakota in 1950s to Boeing Dreamliner in the 21stcentury, it has not been a bad flight per se, butnone of the planes are of Indian make. Indiancivil aviation would do better than before only ifat least some of the twin-engine jets are pro-duced, distributed and “consumed” by the peo-ple of 122 crore which by itself is a self-sustain-ing market of its own.


HISTORY

Regretfully, but

realistically, the Indian

market so farhas not

enhanced itsreputation for

professionalismand efficiency

GLORIFIED PAST: AnIndian Airlines’ Airbus-300 landing.

The business of Maintenance, Repairand Overhaul (MRO) suffered duringthe global economic meltdown whenairlines scaled down capacity andintroduced severe cost-cutting meas-

ures. This trend continues — though not sostringently as it was during the earlier reces-sionary phase of 2008-09 — many airlines thatwere planning to set up one of their own seemto have understood that it does not alwaysmake sense to go that way. With signs ofexpansion showing, the importance of a MROis once again engaging the attention of avia-tion investors in India. But it is too early to sayif better days are ahead for the MRO businessexcept for the fact that any over-capacitycould spell danger to new entrants. Accordingto estimates, the civil aviation MRO market atthe beginning of fiscal 2011-12 was $ 42 billionbusiness.

The prolonged downturn of 2008 and 2009pushed the expected average annual growthup to 2020 to 4.4 per cent. In value terms,MRO business could grow from $ 50 billion in2015 to $ 65.3 billion by 2020. MRO unit costscalculated on the basis of 1000 available seatmiles have been dropping since 2001. Whileexchange rate fluctuations had their impact,the improvement in process and technologieshad its own downward pressure on costs.With the arrival of new-generation engines,airlines using them save on fuel consumptionbut as and when the engines and airframescome up for maintenance they cost more. Theonly difference is a plane like a Boeing 787made of composites and Airbus A 350, as andwhen they arrive with new fuel-efficientengines and airframes, maintenance jobs willneed to start from the tenth year rather thanthe seventh year as is the case now. In a way,the aircraft are available maintenance free fora longer period of time and, therefore, have apositive impact on revenue flows. This will betrue also in respect of the new version of the A320s with new engines and the Boeing 737NGs. This particular aspect may well ensurethat not all get into MRO business. It is nowbecoming clear that most airlines — beset byproblems of rising costs, mainly fuel — arenow going back to focus on the core business

TECHNICAL TALENT AT WORK : Engineers at workin the Airworks’ MRO (Maintenance, Repair andOverhaul) workshop.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2ENGINEERING


MROs IN FOR A LONG HAUL THE MRO BUSINESS IN THE COUNTRY IS NOWHERE NEAR CHINA OR SINGAPORE.TO TOP IT ALL, COMPETITION HAS BEEN BUILDING UP IN SOUTH EAST ASIA ANDTHE GULF. ADDED TO THAT ARE HIGH COSTS AND TAXES. IN SUCH CIRCUMSTANCES, REPORTS R KRISHNAN, THE POSSIBILITY OF INDIA BECOMINGA MRO HUB FOR THE REGION APPEARS RATHER AMBITIOUS.

With signs of theexpansion phase

showing, theimportance ofMRO is once

again engagingthe attention of

aviationinvestors in

India

of flying rather than frittering their energyand money on MROs which seem to havemore chances of succeeding as standalones,unless a legacy carrier has been in the MRObusiness like Air India.

According to Frost and Sullivan, based ona ten-year MRO profile, beginning 2000,China earned 10.3 per cent of Asia PacificMRO revenue in 2000. This rose to 21.5 percent or equal to what Singapore earned in2009. Japan, which was the third-largest MROrevenue-earner, dropped from its earlier shareof 16.6 per cent to 16 per cent a decade later. Inthis context — newer planes and newerengines — ANA took delivery of the firstBoeing 787 Dreamliner in September/Octoberof 2011 thus setting in motion new aircraft

induction. So, it may not have any immediateneed for major maintenance (bread and butterof MROs) in the near future. As per 2010-11figures, in terms of MRO spend by airlines inrespective countries, the US with $15.6 billionwas the largest MRO spender followed byWestern Europe with $10.4 billion, Asia-Pacific $5.6 billion, China $2.3 billion, SouthAmerica $2 billion, Africa $1.5 billion, EasternEurope $1.2 billion and India $444 million.Because of the small base, the MRO businessin India grew by 11.5 per cent.

There are many views ranging from highgrowth on a small base to a virtual explosionin the MRO business in India. But there is awide consensus in aviation circles that it willtake quite a while before India’s MRO busi-


ENGINEERING

There are manyviews ranging

from high growthon a small base

to a virtualexplosion in theMRO business in

India

AIRWORKS


ness acquires a global scale and size or evenbegins to rival China’s MRO development.Projection of MRO business indicates thatEurope may witness over 2 per cent annualgrowth in MRO revenues, North Americabelow one per cent, China 8.2 per cent, India8.9 per cent and the rest of Asia-Pacific(APAC) excluding China and India at 3.2 percent. APAC is closely followed by the MiddleEast with annual revenue growth estimated at6.1 per cent. Emerging trends suggest that thecore of aerospace MRO activity is shifting toAsia with more to China and less to India.

A report of Pricewaterhouse Cooper andConfederation of Indian Industry (CII) in 2009noted that India’s MRO segment was expectedto grow by 10 per cent to reach $800 million byend-2010 and further rise to $2.6 billion by2020. This projection has already falteredbeing an over-optimistic estimate consideringthat MRO in India did a total business of only$ 444 million in 2008. The global recession of2008 hit the Indian aviation sector forcingdomestic carriers to cancel or postpone newdeliveries. As a result, it was certainly adrought period of Indian MROs. In fact, after

India emerged out of recession, there weresigns of revival in 2010 which quickly againwent under because of the near second dip inthe global economy mainly led by a bankruptEurope. American Airways, for instance, haswithdrawn its daily Delhi-Chicago and goneout of the Indian skies. Air France is alsoreducing its Indian frequencies and this couldbe true of other European carriers as well.Obviously, the hay will be made by the Gulfcarriers in this shining time. And it is no won-der that the Gulf and Middle East nationshave planned well into implementation majorMRO workshops, be it Dubai or Qatar.

A report by the Aeronautical Society ofIndia estimated the MRO market in India togrow from below $one billion to $2.6 billionby 2020. But as stated earlier, the MRO marketwithin India was a mere $450 million. If oneincluded the money spent by airlines to sendtheir aircraft to MROs located abroad, then theexpenditure was $800 million. The report fur-ther noted that in value terms the major seg-ment of MRO business included engines (35per cent), airframe (20 to 25 per cent), compo-nent (20 to 25 per cent) and line maintenance


A report by theAeronautical

Society of Indiaestimated the

MRO market inIndia to growfrom below

$ one billion to$2.6 billion by

2020

HIGH-CLASS: Labourersat work at the BoeingMRO in Nagpur.

about (20 to 25 per cent). Air India’s Sanjeev Rotkar, Executive

Director — Sales and Marketing for MRO-SBU, has a different take. There are 1060 air-lines in the world and the aviation industry ismost fragmented. His observation made in2011 noted that the top 20 carriers in the worldaccounted for 50 per cent of global aviationturnover. In 2010-11, the aviation industry car-ried 2.4 billion passengers, employed 32 mil-lion people and generated $ 55 billion revenueeven as it had an overall debt of $ 270 billion.The main challenge facing the global aviationindustry is excess capacity (which alsoseemed to be the case in India till KingfisherAirlines shrunk) as more than 1300 aircraft aredelivered yearly. This increased the externalcost, which included navigation, airportcharges etc even kicking up labour costbesides high taxes and high aviation turbinefuel prices. So, the aviation sector is expectedto continue to be under pressure. It is withinthis climate even a business like MRO has tooperate. Out of the total annual expenses of atypical airline, fuel accounted for 40 per cent(now it accounts for nearly 50 per cent in the

total expenses incurred by domestic Indiancarriers), aircraft maintenance 8 to 12 per cent,labour cost 12 to 17 per cent and overheads 23per cent. Within the labour cost, a major shareis on behalf of highly-skilled staff such as theoperating crew and technical staff — be theyengineers or maintenance personnel. Aircraftengines contribute approximately 70 per centof airline annual maintenance cost and, there-fore, are big cost drivers. As per commercialMRO by-product market, 21 per cent marketis line maintenance and components, 14 percent is for airframe heavy maintenance and 9per cent is modification and as high as 35 percent for engines. There are four main cate-gories of MROs: Original EquipmentManufacturers (OEMs), In-house airline MROshops, Engine MRO shops and Airline ThirdParty Providers. As per available indicators,OEM-based joint ventures account for 43 percent of engine MRO market followed by in-house airline shops with 23 per cent, inde-pendent engine MROs 19 per cent and air-lines’ own third-party MROs 16 per cent. Anairline MRO shop capacity is better utilised asit can opt for third-party work in a lean periodthus reducing the gap between peak and leanload season. However, generally 52 per cent ofsuch MRO work is outsourced and in thisheavy maintenance, engine and modificationdominate outsourcing.

In recent years, with Asian economiesbooming especially after the entry of India,Asia has become a very important source forimporting MRO services. According to an esti-mate, the Indian MRO market is nearly onebillion dollars and growing at 15 per centannually but now faltering with rising lossesof Indian carriers and near disappearance ofsome great brands. Earlier, it was expectedthat the Indian MRO market would be worth$2.6 billion by 2020 but now seems unlikelywhen the GDP growth has dropped to 7 percent. It is not known whether the labour costadvantage, which India enjoyed all theseyears, will continue to be available consider-ing the BPO business has also shifted to near-by newly-emerging Asian economies such asVietnam and Philippines following the risingcost of labour in India. Notwithstanding allthese factors, it is felt that Indian MROs canstill leverage the advantage of being situatedwhere they are mid-way between South-EastAsia and the Gulf. However, issues like hightaxes including service tax, customs duties oncomponents, etc. need fine tuning to makeIndia an attractive MRO hub. In 2011, theIndian engine MRO segment was worth $ 174million, which is expected to grow to $ 500million in 2014-15.

MROs, whether airframe, engines or com-ponents, are all set to emerge as big time avia-tion business in India. But along with theopportunity comes the fear of excess capacity


ENGINEERING

MROs, whetherairframe,

engines orcomponents, areall set to emerge

as a big timeaviation

business in India


as it happened in Europe and elsewhere. AirIndia rightly considers that it can be an idealcandidate for Airline Third Party MRO. It is inthis context that its upcoming MRO in Nagpur— being funded and built by Boeing and AirIndia’s own new hangar providing upto Cchecks for airframe — besides the existingfacilties in Delhi and Mumbai assumes impor-tance.

Air India Express’ maintenance hangar atThiruvananthapuram airport is the first-everstate-of-the-art engineering hangar to be setup in Kerala. The facilities inaugurated inDecember 2011 will undertake all engineeringrequirements in-house. All engineering checksfrom transit to “C” check will be done in thefacility. It will also provide third-party main-tenance jobs. A 15-acre plot was allotted by theKerala government free of cost on which twohangars with dimensions of 50 x 56 squaremetres has been set up. For the first time inIndia, a state-of-the-art electrically-operatedvertically moving hangar door system hasbeen installed. Among the many facilities, theimportant ones include engine video boro-scope, wheels and brakes shop, battery shop,pressure vessel shop, etc. There is also a facil-ity for DFDR/CVR download and read-outfacilities. As for Delhi and Mumbai, the MROfacilities available are well known both interms of airframe and engine.

Besides Boeing building the MRO facility

at Nagpur’s MIHAN, which Air India willoperate and manage, the state-owned carrierhad also signed an agreement with GE for set-ting up a state-of-the-art engine MRO particu-larly for GE 90/GEnx engines which are beingused in Boeing 787 Dreamliners. It will be avery large engine shop. The new AI-GE facili-ty will be initially based in Mumbai but latershift to Nagpur where Boeing-Air India’s newairframe MRO is under advanced construc-tion. Like the airframe MRO, which may pro-vide later third-party service to not justBoeing aircraft but even Airbus narrow bod-ies, the AI-GE engine shop will overhaul notjust GE 90 engine but also CFM-5 and CFM-7engines which is powering both its Boeing737-800s and the A 320 family. Air India is con-fident that all its MROs spread across thelength and breadth of the country will providetop-class airframe and engine overhaul servic-es to not just its own 140 aircraft but also tothe aircraft of other airlines both within Indiaand abroad. It is this third-party work whichAir India thinks will drive its MRO brandname as also business.

As on date, there are about 450 commercialaircraft in India. In the next two decades,around 1000 aircraft could join suggesting agood scope for already established MROs inthe country. Servicing an aircraft in Indiaentails a service tax of 10.3 per cent, whichoverseas MROs do not charge. Importing


Air India Express’maintenance

hangar atThiruvanantha-

puram airport isthe first-ever

state- of-the-artengineering

hangar to be setup in Kerala

STRATEGIC ALLIANCE: Kiran Grandhi, Chairman-Airports, GMR Group, exchanging MoU with the then Executive Director/Chief FinancialOfficer, Tengku Azmil Zahruddin, Malaysia Airlines, after sealing an agreement between Malaysia Airlines and GHIAL to set up a MRO.


spares/components entails levy of Customsduties of upto 50 per cent besides a 12.5 percent VAT. In places like Mumbai, there is alsoan additional octroi of 4 per cent. So, while a“C Check” (half overhaul of an aircraft doneevery 18 months) on an A320 is estimated tocost `2 crore abroad, the estimate in Indiabecause of these levies could be as high as `3crore and with dollar appreciation and rupeedepreciation even these costs have undergonea drastic change. Maybe India’s cheap labourtheory could well get neutralised by costlierimported spares and components.

Thus, in a way, all these issues give a greatfighting chance to the Maharaja to take thelead in the Indian MRO business, both interms of cost savings by servicing in-houseaircraft and a new revenue stream by provid-ing third-party services.

The only private third-party-orientedMRO is Air Works which set up its facility inHosur, near Bengaluru. Air Works’ MRO hasalready got DGCA and EASA certification.DGCA has given approval to work on ATR 42-500s and ATR 72-500s and Kingfisher Airlineshad begun to get its ATRs serviced and main-tained at this centre. After the serious finan-cial crisis that gripped Kingfisher airlines, theAir Works MRO has also taken a bit of hit.DGCA also approved Air Works to conductmajor checks on B737 NGs as also A 320 fami-ly aircraft. The company has spent `50 mil-lion at the same place to build a hangar forwide body aircraft. This hangar is operationaland Air Works is now looking to develop andprovide heavy maintenance work in general

aviation as well. Yet another MRO has come up at

Hyderabad airport as part of the GMRInfrastructure. It is a 50-50 JV between theGMR Group and Malaysian Airlines Systems.Besides, it also has a CFM56 maintenancetraining centre.

In March 2010, Jet Airways had signed a$750-million contract with ST Aerospace inSingapore. Under the deal, ST Aerospace was tomaintain Jet Airways and JetLite’s CFM enginesbased on an hourly contract. The agreementenvisaged commissioning of “entire hospitalshop” at Jet Airways’ hangar at Mumbai air-port. The two were to build an engine shopthere. ST Aerospace’s scope of work involvedoff-wing, on-wing and on-site support as wellas technical and annual maintenance support tothe fleet of both Jet Airways and JetLite.However, there is not much talk about this facil-ity of late. Incidentally, even Jet Airways isunder financial strain like other competing air-lines in India.

It will take a few years before India can getanywhere near China or Singapore. Withnew/substantial expansion taking place inMROs located in South-East Asia (mainlySingapore) and the Gulf such as Dubai andAbu Dhabi besides Qatar in the Middle East,the possibility of India becoming a MRO hubfor this part of the world appears over-ambi-tious for the present. Even the establishedMRO HAECO in Hong Kong lost money in2008-09 and 2009-10 but it is planning to setup another unit to perform heavy checks on A320s.

Yet another MROhas come up in

Hyderabadairport as part of

the GMRInfrastructure. It

is a 50-50 JVbetween the

GMR Group andMalaysian

Airlines Systems

TOWARDS RENEWAL:An Air India Expressplane in an mainte-nance hangar.

AIR

INDI

A

ENGINEERING



After successfully driving the sale of Boeingaircraft in India from Seattle where all itscommercial airplanes such as the 737, 777and, now the 787, were and continue to bemanufactured, Dr Dinesh Keskar moved

to Delhi a couple of years ago as Boeing IndiaPresident where his mandate included the sale ofBoeing’s military aircraft even as he attended toother requirements of the company -- be it the super-vision of the Offset Clause or setting up of the MROat Nagpur. Dr Keskar in early January 2012 waspromoted as Boeing Commercial Airplane’s SeniorVice President Sales Asia-Pacific. The new assign-ment will now give him a much wider spectrum tooperate in India and the Asia-Pacific. He sees it as agreat challenge even as he admits his passion forIndia which he says has great potential and future,in this conversation with R Krishnan.

What is the status of the Boeing MRO com-ing up at the Multi-Modal International HubAirport at Nagpur (MIHAN)?The Boeing MRO located at MIHAN SEZ iscoming up in an extremely good way. Ourplan is to build two hangars each with an areaof 100 metres by 100 metres. Each hangar willhave the width and height to easily accommo-date either a Boeing 747 or a Boeing 777 oralternatively three narrowbody Boeing 737aircraft at a time, respectively. The construc-tion started in January 2011 and the contractfor construction was given to L&T while thatfor its management to CBRE. The project isproceeding ahead of schedule and we expectit to be completed by the fourth quarter of2012. Recently, work on placing a slab of 206

metres by 30 metres was completed whichwill be the roof and also the office space andcomponent shop of the MRO. Boeing’s total investment in the project will be US $ 100million.

The upcoming MRO situated on 50 acresof land at MIHAN-SEZ will have a very largetarmac to accommodate waiting planes beforethey go into the hangar for checks, etc. Theexisting main runway at Nagpur airport islong enough to receive a Boeing 747.

Are there any issues holding up work?None in particular. However, we are expect-ing that the work on connectivity that is a linkfrom the main runway to the MRO hangar iscompleted by the time the MRO is ready; thatis before the fourth quarter of 2012. For this,we have requested the Maharashtra AirportDevelopment Company (MADC), which is thedeveloper of the SEZ, to expedite the link.Earlier, there were plans for a second runwayat Nagpur airport but it got delayed due tocertain land acquisition issues. As a result, theneed for constructing or laying a connectinglink road of 1.6 kilometres from the main run-way has arisen, which we hope will be doneby MADC on time. The MADC ManagingDirector has confirmed the plan for the taxi-way. What I would like to say is that while weare abiding by our part of the plan, it is nowthe turn of MADC to abide by its part of theplan to provide the taxiway. As far as the con-struction of the MRO is concerned, we areahead of the schedule and it would be com-pleted before the fourth quarter of 2012.

The upcomingMRO situated on50 acres of land

at MIHAN-SEZwill have a verylarge tarmac toaccommodatewaiting planesbefore they gointo the hangarfor checks, etc.

The existing main runway at

Nagpur airport islong enough to

receive a Boeing 747

DR DINESH KESKAR IS UPBEAT ABOUTBOEING'S PROSPECTS IN INDIA.

H C

TIW

ARI

‘BOEING’S NAGPUR MRO WILL BE READY BY END-2012’

What will be the scope of its work?The MRO is designed exclusively to do only air-frame work and as part of it, the MRO initiallywill deal with only Air India’s fleet of Boeing737, 777 and later on the 787 or the Dreamliners.The remaining capacity will be used to offerMRO services to other Indian carriers that haveBoeing fleets such as Jet Airways and SpiceJet.As for working environment inside the MRO, itwill be a green building with solar power, natu-ral lighting and rainwater harvesting. The rea-son why we zeroed in on Nagpur is that it hasan ideal climate: the city has a temperature ofbetween 40 and 45 degrees Celsius, which isideal for a maintenance hangar. Moreover, it isnot close to the sea; hence, there is no chance ofcorrosion, etc. We have such weather conditionsin Phoneix and Florida in the USA.

Can the MRO sustain itself only with AirIndia aircraft?First, the MRO facility will take care of Boeingcustomers and this state-of-the-art maintenancerepair and overhaul shop may in future look atproviding services to other aircraft types suchas the Embraer and the Airbus depending onthe availability of capacity.

When modern MROs have either come upor are coming up in Qatar, Dubai besidesMalaysia and Singapore, what is your expecta-tion of third party business?There has been a significant growth of aircraftfleets in India in the last five years that have notbeen coupled with adequate MRO facility. Oncethe Boeing MRO at MIHAN-SEZ facility is com-pleted, it will first take care of Air India andother local Boeing operators and then non-Boeing aircraft will be provided these services,subject to the availability of capacity at theMRO shop or depot. Further, based on factorslike cost/quality/time, etc. this MRO will evenlook at handling MRO business from regionssuch as the Middle East and South East Asia.

Moving away from the MRO, could you tellus about the Dreamliner Boeing 787?It is going to be a game changer because in theairline business significant difficulties are beingfaced such as rising fuel costs, exchange ratevariations and low fares. Under these circum-stances, anything, which can help airlines, iswelcome. On the cost side, the Dreamliner willburn 20 per cent less fuel than today’s airplanesthat have higher fuel burns. Therefore, therewill be big savings on fuel. Besides, theDreamliner will also entail 30 per cent less

maintenance cost as a "D" Check will benecessary in 12 years compared to other

aircraft. The Dreamliner, then, will be inrevenue service much longer than any

competition. On the revenue side, the787 has more belly cargo carryingcapability.

Since there are a few 787s in com-mercial operations, Air India could alsohave the first-mover advantage leading

to much high loads and, therefore,higher revenue. The Dreamliner willhave newer features such as lowercabin altitude, better inflight enter-tainment and humidity controlinside the aircraft. All these willresult in more passengers wantingto or even choosing to fly this air-craft. Perhaps, they may even askfor it by name. All these willcombine to make it an effectivegame-changer.

Is Boeing not concerned bythe rising graph of Airbus nar-rowbody sales in India?

INTERVIEW

There has been asignificant

growth of aircraftfleets in India in

the last fiveyears that have

not beencoupled with

adequate MROfacility... the

Nagpur MRO willfirst take care of

Air India andother local

Boeing operatorsand then non-Boeing aircraftwill be providedthese services



There is a significant misunderstanding aboutBoeing’s position in India. Boeing already has amarket dominance in widebody. For instance,there are 20 Boeing 777s with Air India and 10777s with Jet Airways. Besides, Air India has onorder 27 Boeing 787 Dreamliners and JetAirways has 10 Dreamliners on order. Whenyou compare this with the competition you willget your answer. As for narrowbodies, whichare called standard bodies in the US, Boeingintroduced 737s to the Indian Airlines in the1960s and subsequently the start-up privatecarriers in the early 1990s chose the 737s. Today,

Jet Airways has a fleet of 737s, which are all thenew series of 700/800/900. This fleet of Boeing737s exceeds any other fleet of aircraft in India.Further, a fleet of 21 Boeing 737-800s is with AirIndia Express. SpiceJet has over 30 Boeing 737sand another 30 such airplanes are on order.Both Jet Airways and SpiceJet continue to takeBoeing deliveries on regular basis. As for thecompetition, there is only one airline which hasbeen taking its plane on regular delivery.Hence, in the total capacity added there is nodifference in the intake of narrowbodies byIndian carriers.


THUMBS-UP: Keskarwelcomes the Boeing787 Dreamliner dur-ing its first visit toIndia.

BOEI

NG

India’s only multi-disciplinary helicopterservice provider — Pawan HansHelicopters Limited, celebrated its silverjubilee function in Delhi on February 21.This public sector company was incorpo-

rated in 1985 under the administrative controlof Ministry of Civil Aviation and was granted‘Mini Ratna’ status just last year.

The Chairman and Managing Director ofthe company, R K Tyagi narrated the journeyof the helicopter operator to the audiencewhich included both present and formeremployees of the company. What made theoccasion special was the presence of the fami-lies of almost every Pawan Hans employee aswell as a large number of former CEOs of thecompany.

“The growth of the company over the lastfew years has been encouraging. Unlike theinitial years, the company has witnessed a

manifold growth in its operating profit. Whilethe profit of the company stood at `2.8 croreduring the financial year 2006-07, the profitgrew exponentially to `48.5 crore during thelast fiscal,” Tyagi told the delighted audience.

Several employees were felicitated by CivilAviation Secretary Dr Nasim Zaidi for theirgood performance and contribution to thecompany. What was most moving was the ges-ture of remembering old-timers starting withthe first CEO of the organisation.

In his speech, Dr Zaidi pointed out to thefact that he was hoping that Pawan Hanswould go on to achieve specific milestones inthe next 25 years. He hoped that the Chairmanand Managing Director would be able toachieve them in the next five years. “It speaksvolumes for the commitment of the PawanHans employees and the leadership of MrTyagi,” said Dr Zaidi.


CELEBRATIONS ALL THE WAY: Pawan Hans Chairman and MD R K Tyagi presenting a memento to DGCA E K Bharat Bhushanduring the 25th anniversary celebrations of Pawan Hans. Also seen in the picture is Civil Aviation Secretary Dr Nasim Zaidiand Joint Secretary G Asok Kumar.

The occasionwas special withthe presence ofthe families ofalmost everyPawan Hans

employee as wellas a large

number of formerCEOs of the

company

CHOPPERS

PAWN HANS IS 25!WELL-KNOWN AS THE ‘LIFELINE OF INDIA’, PAWAN HANS HELICOPTERS LTD BEGAN ITSJOURNEY IN OCTOBER, 1985. SINCE THEN, IT HAS GROWN FROM STRENGTH TOSTRENGTH AND IS TODAY, ONE OF ASIA’S LARGEST HELICOPTER COMPANIES THAT MAIN-TAINS AND OPERATES BY OFFERING A WIDE RANGE OF SERVICES TO ITS CLIENTSTHROUGH ITS FLEET OF HELICOPTERS. PHHL CELEBRATED ITS SILVER JUBILEE RECENTLYWHERE IT HONOURED AND REMEMBERED ALL ITS FORMER EMPLOYEES.

HE

MA

NT

RAW

AT

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2CHOPPERS


FUTURE READYPAWAN HANS HELICOPTERS HAS CHARTED OUT A DETAILED PLAN FOR ACQUISITION ANDDEPLOYMENT OF AROUND 250 CHOPPERS AND SEAPLANES IN THE COUNTRY OVER THE NEXTFIVE YEARS FOR WIDE-RANGING DUTIES: FROM TOURISM TO LAW AND ORDER AND EMER-GENCY EVACUATION FOR MEDICAL AND OTHER PURPOSES, ACCORDING TO THE ‘ROAD MAPFOR HELICOPTER INDUSTRY IN INDIA (XII FIVE YEAR PLAN - 2012-17)’’.

While there are around 35,000 heli-copters in operation worldwide, inIndia the share is less than a mea-gre one per cent at just over 300helicopters, despite being the sec-

ond most-populous nation in the world wit-nessing a sharp economic growth.

In the last two decades, with the opening ofthe Indian economy, there has been consider-able improvement in the size of the aviationindustry and a significant growth in number ofcustomers who are availing such services. Atthe same time, Indians have the lowest propen-sity to travel by air among the BRIC (Brazil,Russia, India and China) countries, making lessthan 0.1 trips per capita in 2009, at par withBelarus and Senegal, according to Airbus data.Although the airline industry is expanding at arapid rate in India at present with aircraft(more than $40 billion) in the order pipeline,connectivity remains inadequate through

much of India, and airport infrastructure is vir-tually non-existent in many smaller cities.

There is an urgent and realistic requirementand possibility of increasing the size of the hel-icopter industry by addressing the persistentand latent requirements such as non-passengerservices including medivac, disaster manage-ment, law enforcement, etc. which are seriouslylagging behind conventional uses at present.

The Strategic Plan of the Ministry of CivilAviation covers the road map for the aviationindustry over a five-year period. Keeping thehelicopter industry in view and its growthpotential through the XII Five Year Plan period(2012-17), a roadmap has been proposed where-in the number of civil helicopters may increasefrom the present 300 to over 500.

Through GBS (Gross BudgetarySupport) forming part of the XII Five YearPlan of other ministriesi) DoNER


CHOPPERS

CRUISING ON WATERAND IN THE AIR: India’sfirst sea-plane (amphib-ian plane) of PawanHans.

There is anurgent and

realisticrequirement and

possibility ofincreasing the

size of thehelicopterindustry by

addressing thepersistent

requirements

Acquisition of 21 helicopters to enhance con-nectivity of the North East Region for runningregular passenger services. These projectionsare based on the detailed deliberations withDoNER(Development of North EasternRegion)/NEC (North Eastern Council) and stud-ies carried out in North Eastern states by PHHL.The report submitted by PHHL has been accept-ed in principle. It is pertinent to mention thatPHHL was nominated as a nodal agency for car-rying out this study to support enhanced con-nectivity in the North Eastern region.ii) Ministry of TourismAcquisition of 20 helicopters for developingnew tourist sectors which otherwise are notoperational at present due to lack of connectiv-ity and infrastructure at important tourist desti-nations. The projections are based on studiesand surveys carried out at important tourist

destinations in West Bengal (including theSunderbans region), Bihar (Buddhist Circuit),Gujarat, Jammu & Kashmir, Kerala, etc. iii) Ministry of Home Affairs

Acquisition of 20 fully-equipped mediumhelicopters for maintenance of law andorder, anti-Naxal activities, coastal surveil-lance and for metro cities in India. Acquisition of helicopters to provide helisupport to 618 districts in India by deploy-ing initially up-to 178 helicopters, equiva-lent to 30 per cent of the total number of dis-tricts, ensuring wide coverage for disastermanagement, emergency and primary med-ical care, medivac, law enforcement, etc.

Through GBS forming part of the XIIFive Year Plan of Ministry of Civil Aviation

Create infrastructure like at least one heli-port in eight North-Eastern state capitalsand up to one or more helipads per districtin all the NE states totalling around 40 heli-pads as projected in the study for improve-ment of connectivity at the NE regions sub-mitted to DoNER.Create three cityport/heliportprojects/extension of heliport in metro loca-tions (apart from Rohini, New Delhi) inIndia and provide a fillip to helicopterusage to facilitate enhanced capacity for thehelicopter industry and other requirementssuch as medivac, disaster management, lawand order, etc. Acquisition of 10 seaplanes for inter-islandconnectivity at the Andaman and NicobarIslands, the Lakshadweep Islands and othercoastal areas and connect the islands to the



MULTI-TASKING:(Above) A Pawan Hanschopper landing onthe helipad at VaishnoDevi shrine; and(below) Pawan Hansprovides helicoptersupport for offshoreoperations of ONGC.

mainland for passenger services to the localpeople, medical evacuation and promotionof tourism, etc. PHHL has already carriedout feasibility studies for seaplane opera-tions at Andaman and Nicobar Islands andthe Lakshadweep Islands.Create infrastructure at Hadapsar, Pune likeTraining Centre for pilots and engineers,MRO, simulators, flight monitoring/follow-ing systems, etc. for HR capacity-building toproduce skilled manpower to cater to thegrowing demand of the helicopter industry. Create infrastructure for safety training forthe aviation industry.Development of aero-sports offering modelbuilding/flying, motorised gliding,paragliding, parasailing, hot air ballooningactivities to professionals as well as enthusi-asts in order to generate awareness andinterest in the aviation industry.The above projects would be centrally cov-

ered through the Gross Budgetary Support(GBS) of the Central Government covering var-ious central ministries/government agencies asthese are not in the nature of commercial activ-ities. Such GBS of the other central Ministries isproposed to be routed through Ministry of CivilAviation with Pawan Hans Helicopters Ltd(PHHL) being appointed as the nodal agencyfor implementation of the proposed plan.

The proposed acquisition of fleet and cre-ation of infrastructure will be national assetsand PHHL would be involved as the operatingand maintenance agency.

To address the above requirements, esti-mates have been made for plan outlay duringthe XII Five Year Plan period (2012-2017) cover-ing capital asset creation such as acquisition ofhelicopters and creation of other infrastructure.This includes purchase of 249 helicopters in var-ious categories, 10 seaplanes and creation ofheliports/helipads and related infrastructure. Italso includes infrastructure-creation for HRcapacity building at Hadapsar-Pune, NationalInstitute of Aviation Safety & Services (NIASS)and Pawan Hans Training Institute (PHTI), etc.

TOTAL FINANCIAL IMPLICATION

The total plan outlay projected for acquisitionof helicopters/aircraft and other projects duringthe XII Five Year plan period covering variousCentral Government agencies and its fundingthrough GBS aggregates to `10030 crore.


CHOPPERS

THE INDIAN ’COPTER INDUSTRY

Through GBS forming partof the XII Five Year Plan ofother ministries

` 9,020 Crore.

Through GBS forming partof the XII Five Year Planof MOCA

` 10,10 Crore.

TOTAL (A+B) ` 10,030 Crore.

UTILISATION

CHOPPER USERS

MOVING AHEAD: FINANCIAL BREAK-UP

TOTAL CHOPPERS BY PROJECTS: 259

TOTAL: 10030 crores



CHOPPERS

CHOPPERS FORTHE NATIONA RECENT PROPOSAL PUT FORWARD BY PAWANHANS HELICOPTERS LTD SEEKS TO ENHANCETHE CHOPPER INFRASTRUCTURE IN THE COUNTRY WITH THE INDUCTION OF 249 CHOPPERS TO THE EXISTING 250. A REPORT.

It is an ambitious plan but one that will iscertain to send India into the big leagues.Some time ago, Pawan Hans HelicoptersLimited (PHHL) submitted a `10,030-croreproposal for the purchase of 249 helicop-

ters and 10 sea planes. India has presently 250helicopters. The proposal also includes the con-struction of 180 helipads across the country.Pawan Hans has submitted the plan to fourministries: while the Union Home Ministry hasgot a `7,760-crore plan, the Civil Aviation min-istry has been given a `1,010-crore proposal, theMinistry of Development of the NortheasternRegion a `1,020-crore plan and the TourismMinistry a `240-crore plan. When the ministriesgive the green signal, the implementationwould begin in the 2012-2017 five-year plan.

Of the 249 choppers, 178 would be used for

PAW

AN H

ANS

medical emergencies, law enforcement, etcwhile 20 each would be equipped for air sur-veillance and tourism and a further 21 for use inthe Northeast. The 10 sea planes would be usedfor connectivity in the Andaman, Nicobar andLakshadweep region.

According to officials in Pawan Hans, theproject would bring helicopters into the main-stream helping, for instance, road accident orearthquake victims. However, law and orderwould benefit the most. According to the pro-posal sent to the Home Ministry, 20 fullyequipped medium helicopters would be pro-cured to monitor anti-national activities, coastalsurveillance, etc.

The proposal from Pawan Hans will pro-vide muscle to the present infrastructure. Overthe last 25 years, Pawan Hans Helicopters

Limited has grown in strength. No longer doesthe company operate only in hilly and inacces-sible areas or promote travel and tourism; it hasto its credit a number of achievements — estab-lishment of a specialised institute for SafetyAudit and Excellence, heliports and becomingan authorised maintenance unit for an interna-tional chopper manufacturer. Pawan Hans hasturned into India’s premier multi-disciplinedhelicopter services provider.

Incorporated in October 1985, PHHL beganoperations within one year. Its objective: providehelicopter services to the oil sector, operate inhilly and inaccessible areas and make availablecharter flights for promotion of travel andtourism. The company has added three moreobjectives in the 24th Annual General Meetingheld on December 23, 2009: set up a training insti-tute of AME, pilots; operate sea plane and estab-lish a specialised institute for Safety Audit andExcellence and set up heliports and joint venturesfor operations and maintenance of helicopters.

PHHL’s authorised capital has beenincreased from `120 crores to `250 crores onDecember 3, 2010. The paid-up share capital ofthe Company is now `245.616 crores compris-ing `125.266 crores in the name of the Presidentof India and `120.35 crores in the name ofONGC Ltd. ONGC has converted loansamounting to `95.85 crores into equity andequity shares allotted on February 14, 2011. Thegovernment has conferred the status of “MiniRatna-I” for PHHL on April 11, 2011.

PHHL signs an MoU with the Ministry ofCivil Aviation every year after the Task Forcenegotiation meeting in the Department of PublicEnterprises. In 2007-08 and 2008-09 the companyhas achieved MoU rating of “Good” and “VeryGood” respectively as per DPE norms. For theyear 2009-10 the MOU rating is “Excellent”.

With its registered office at SafdarjungAirport, New Delhi, corporate office at Noidaand regional offices at Mumbai and New Delhi,PHHL has a team of dedicated highly motivat-ed and skilled manpower comprising pilots,engineers, executives and support staff. Thecompany is headed by Chairman-cum-Managing Director and five part-time directors.

PHHL has emerged as one of Asia’s largesthelicopter operators with its 42 helicopters. Atpresent, the company has a fleet of 51 helicop-ters comprising 18 SA-365N Dauphin, 14Dauphin AS365N3, 3 Bell 206 L4, 4 Bell 407, 2AS 350-B3 and 1 MI-172 helicopters.

The company has an operation and mainte-nance contract of a Dauphin N3 helicopter ofGovernment of Gujarat, two Dhruv helicoptersowned by ONGC and four Dhruv helicoptersowned by the Border Security Force in 2009with HAL. Further, the company has signed inDecember 2010 another contract with HAL foroperation and maintenance of four more Dhruv


CHOPPERS

PHHL hasemerged as

one of Asia’slargest

helicopteroperators

with its 42

helicopters

helicopters of BSF.Operational Milestone: Pawan Hans

has transited from its Quality ManagementSystems under ISO 9001:2008 standards to ISO14001 and 18001 Certification which is known asIntegrated Management System covering envi-ronment and safety aspects. The company hasachieved flying of more than 5.13 lakh hours and19 lakh landings of its fleet since its formation.

Operations for ONGC: Since October1986, Pawan Hans has been providing helicop-ter support for offshore operation of ONGC forcarrying its men and vital supplies round theclock to drilling rigs situated at Mumbai off-shore platforms. PHHL operates to ONGC’srigs (mother platforms and drilling rigs) andproduction platforms (wells) within a radius of130 nm. from the mainland at Mumbai.

OTHER CUSTOMERS: PHHL has provided helicopter sup-

port services to several state governments. Thecompany provides three Dauphin helicoptersto the Administration of Andaman and NicobarIslands and two Dauphins to Lakshadweep. Itis also providing helicopter services to Ministryof Home Affairs (MHA) at Guwahati, Oil IndiaLimited and GAIL.

PHHL runs the helicopter servicesfrom Phata to the holy shrine of Kedarnath dur-ing the May-June and September-October sea-sons every year. The company was able toachieve record revenues from operations atPhata during two seasons, namely May-June2010 and September-October 2010 by carrying19,182 passengers. PHHL has also been award-ed a contract by Shri Amarnath Shrine Boardfor operating helicopter services for the ShriAmarnathji Yatra 2010 and 2011 on Baltal-Panjtarni-Baltal sector and started servicesfrom July 1, 2010 with two Bell 407 helicopters.

PHHL has been successfully operat-ing helicopter services at Mata Vaishno Devijifrom Katra to Sanjhichhat under competitiveconditions and has carried 1.90 lakh passengersin 2010-11, 2.05 lakh passengers during finan-cial year 2009-10 and 1.24 lakh passengers in2008-09. The company has been awarded con-tract for three years by the Shrine Board ofMata Vaishno Deviji from April 1, 2011, undersignificant competitive environment after beingdeclared the lowest bidder.

The company has undertaken a proj-ect for Power Grid Corporation of India Ltd.Hotline Washing of insulators of the powertransmission lines for five months in 2008 andfor three months in 2009.

PHHL has been awarded a contract byGujarat State Petroleum Corporation Ltd. forcharter hire of a Dauphin N3 helicopter forthree years from November 26, 2010.

It has carried out operations for BorderRoad Organisation at Arunachal Pradesh fromNovember 18, 2010 for eight months with one



PHHL runs thehelicopter

services fromPhata to the

holy shrine ofKedarnath during

the May-Juneand September-October seasons

every year

CHOPPERS

NORTH-EAST PUSH BYPAWAN HANS One of Pawan Hans' prime objectives isproviding services in the North East. Thecompany has deployed a number of itschoppers with state governments andPublic Sector Units (PSUs) in the NorthEast. These helicopters are provided to thestates on a long term lease basis. The stategovernments pay Pawan Hans directly forutilizing the helicopters and in turn aresubsided for the helicopter operations bythe Ministry of Home Affairs (MHA). In Arunachal Pradesh, Pawan Hans hasprovided a Mi-172 helicopter that is beingutilized for passenger services connectingItanagar with Guwahat, Tezu, Ziro, Roing,Tawang, etc. The services by the Mi-172are run by the state government on a sub-sidized basis with 75 per cent subsidyfrom MHA and the balance 25 per cent isrecovered from passengers.In neighbouring Meghalaya, Pawan Hanshas provided a Dauphin helicopter on wetlease from February 15, 1999. The stategovernment has been operating daily pas-senger flights on Guwahati-Shillong-Turasector and other flights within the state.The passenger services are operated witha subsidy from the MHA. Pawan Hans has stationed a five-seaterBell helicopter on wet lease for the Sikkimgovernment since October 31, 1998. Heretoo, the state government. has been oper-ating daily passenger/tourist flights on theGangtok-Bagdogra-Gangtok sector andother flights for carrying tourists on a sub-sidized basis with 75 per cent subsidyfrom MHA. The Sikkim government hasalso awarded a contract to PHHL to pro-vide single/twin engine helicopter.In Tripura, Pawan Hans has provided afive-seater Bell helicopter on wet leasefrom September 25, 2002. The state gov-ernment has been utilizing this helicopterfor regular passenger services connectingAgartala, Dharmanagar, Kailashaar, etc.and for other purposes within the state -again on a subsidized basis. The MHA had also been utilizing a PawanHans Dauphin helicopter since 1996 basedat Guwahati. The contract for the AS 350B3/Bell 407 helicopter expired at the end of2010. The helicopter was based atGuwahati and was being used by minis-ters and senior officials of the central gov-ernment to visit places in the North East. Pawan Hans has also provided a AS 350B3 helicopter for pipeline survey to OilIndia Ltd. from September 20, 2010. Thechopper is stationed at Guwahati.


CHOPPERS

PHHL Chairman R K Tyagi* on the growththat Pawan Hans has seen in the last 25years.

How were the first 25 years of PawanHans?The year 1985 can be considered the yearwhen India began its journey of a new erawith Rajiv Gandhi as the young PrimeMinister. As PM, he displayed a vision of anew India where growth would be the way oflife. This was the year when India defined itsstrategic sectors such as petroleum, whichhad to be protected for the development ofour country. This was the year when the tele-com revolution began with the PrimeMinister’s vision for nationwide (rural andurban) connectivity. And this was the yearwhen Pawan Hans was born as the HelicopterCorporation of India.

Pawan Hans began its journey on October15, 1985, from a hotel room in New Delhi.Today, after 25 years of service to the nation,Pawan Hans has achieved the status of a MiniRatna and has its own corporate building andwell-established regional offices and basesacross the country to serve different cus-tomers.

The company showed high energy rightfrom its inception in 1985 and became opera-tional within one year. The journey of the last25 years has been full of energy, excitement,learning and growth. In these years, the com-pany has handled more than 100 helicoptersconsisting of 11 different types and all cate-gories: light, medium and heavy. We havedeveloped expertise in the entire gamut ofhelicopter services — be it operations, main-tenance or training. Today, the company isready to handle 1000-plus helicopters that arerequired to meet the country’s demand forlast mile connectivity, disaster management,internal security and medical services — pri-mary healthcare and emergency services.

What is the vision statement for the nextquarter century?India is one of the fastest-growing economiesof the world today and aspires to be the thirdlargest economy of the world with the pro-jected share of 14.3 per cent of the globaleconomy by the year 2015. These aspirationscannot be achieved without the growth of thecivil aviation sector especially helicopters.India needs more helicopters to performnumerous roles for public good.

Therefore, the helicopter’s role for India iscut out. It has to be used as an effective tool in

managing disaster, enforcing law and order,building and maintaining infrastructure, pro-vide emergency medical support, bring pri-mary healthcare to the doorstep of every citi-zen including the remotest of the remoteareas of country. In addition, it has to providelast-mile connectivity and also promote ournational heritage for tourism.

Pawan Hans has a major role to play intraining pilots and engineers. You have aprocess in place already. How will you rampit up?Like any other growth-oriented company,Pawan Hans has diversified to include train-ing and safety. It has opened Pawan HansHelicopters Training institute (PHTI) atMumbai to impart basic three-year trainingcourse for aircraft maintenance engineers.The National Institute of Aircraft Safety andServices (NIASS) has been opened in NewDelhi to impart safety courses like safetymanagement system course, accident preven-tion and investigation course, special VFRcourse for pilots, CRM training, etc. Theseinstitutes are meant to develop the skilledmanpower for the helicopter industry.

You work with many state governmentsacross India. Please elaborate your relation-ship with them.Pawan Hans was created to serve petroleumsector and also provide the much-neededconnectivity in the states of the North-Eastand other far-flung areas of country. PawanHans has been in the forefront in support-ing state governments in providing much-needed connectivity, especially in theNorth-East. These state governments havelauded our efforts for years. People of theseregions consider our services to be a lifelineand appreciate our efforts.

Recently, in Sikkim, PHHL has rescuedapproximately 500-plus people from variousquake-affected areas to the nearby base sta-tions/camps including dead bodies/majorinjured people/pregnant women/kids sincethe calamity took place. PHHL has alsotransported relief material in far-flung areasof North Sikkim, the worst-affected by theearthquake. Similarly, we supported Orissagovernment in its floods relief efforts.

Due to our sincere efforts, the state gov-ernments have often called Pawan Hans todeploy helicopters during natural calami-ties ahead of the defence forces.*R K Tyagi has since moved on to take over asChairman and MD, HAL

Pawan Hans hasachieved the

status of a MiniRatna and has

its own corporatebuilding and

well-establishedregional offices

and basesacross the

country to servedifferent

customers

“THE HELICOPTER INDUSTRY IS POISED FOR VERY HIGH RATE OF GROWTH”

Mi-172 helicopter taken on lease. For the first time in India, PHHL provid-

ed four helicopters (Dauphin and AS 350 B3helicopters) for live coverage ofCommonwealth Games 2010 events forDoordarshan.

PHHL introduced seaplanes for firsttime in India to promote heli-tourism inAndaman and Nicobar Islands on 50:50 prof-it/loss sharing basis. A Cessna 208 An amphib-ian seaplane was taken on wet lease for a pilotproject of six months initially. The seaplane wasdedicated to the nation on December 27, 2010and a proposal has been put up to the Ministryof Civil Aviation for providing support for via-bility gap funding to the tune of `3 crore toPHHL for this project.

Heliport/Helipad in Delhi: The DelhiDevelopment Authority (DDA) allotted 25acres of land near Rohini for construction of thefirst integrated heliport in the country on June1, 2009. DDA also earmarked a hectare of landfor construction of helipad at CommonwealthGames Village site and PHHL completed thehelipad in October, 2010. PHHL also created thebasic infrastructure facilities/parking and heli-pad at Rohini. The Environmental ImpactAssessment Study Report for the RohiniHeliport has been completed and the finalreport has been submitted.

PHHL has constructed the heliport at CWGVillage (Akshardham) with best facilities. Asthe ownership of heliport belongs to DDA,PHHL has requested DDA to grant permissionto utilise the infrastructure/facilities for helicop-ter operations.

PHHL is planning to develop aHelicopter Training Academy-cum-Heliport atthe existing Gliding Centre at Hadapsar, Punewhich is under administrative control andowned by DGCA. The project has beenapproved by Ministry of Civil Aviation and theDGCA has released an amount of `10 crore forthe purpose. PHHL signed a MoU with DGCAon May 17, 2010, and DGCA has authorised touse land and other infrastructural facilities fordevelopment at the Gliding Centre.

PHHL signed an MoU on July 23, 2010with HAL for carrying out a feasibility studyfor setting up a joint venture for operation andmaintenance of ALH Dhruv, Chetak andCheetah helicopters of the defence forces. TheBoards of HAL and PHHL have given in-prin-ciple approval for setting-up of the said JV of50:50 and further discussions are in progress.

The company set up a DGCA-approvedhelicopters training institute at Mumbai —Pawan Hans Helicopters Training Institute(PHTI) — in September 2009.

In June 2010, PHHL started the NationalInstitute of Aviation Safety & Services (NIASS) atDelhi for safety management system and safetyawareness in the country. The institute aims tocater to emerging safety standards and audit



For the first timein India, PHHLprovided four

helicopters(Dauphin and AS

350 B3helicopters) forlive coverage ofCommonwealth

Games 2010events for

Doordarshan

EQUIPPED FOR TOTALMAINTENANCESince it started operations, PHHL hasbuilt up adequate infrastructure/mainte-nance facilities (CAR 145 standard), qual-ified engineers and technical staff for themaintenance of different type of helicop-ters that the company operates from dif-ferent locations. In addition, Pawan Hansalso undertakes repair/maintenance ofhelicopters and components owned byothers as per the approved CAR 145 stan-dard. It has, for example, operations andmaintenance contracts for Dauphin AS365 N3 of the government of Gujarat andDhruv helicopters of the Ministry ofHome Affairs and the ONGC.

PHHL has approved CAR 145 stan-dard SOAP Lab for monitoring the healthof aero engines and gear boxes by analy-sis of lubricating oil for concentration ofmetals by the atomic emission method.The state-of-the-art workshop facilitiesare located at Mumbai (western region)and Delhi (northern region). The workshops at the regions are:

Main Rotor Blade ShopEngine ShopComposite Repair ShopSafety ShopBattery ShopRadio ShopSOAP LabInstrument LabElectrical Shop

The Main Rotor Blade shop in Mumbai isthe only one of its kind in Asia approvedby Eurocopter and is capable of under-taking repair jobs on the main rotorblades of the Dauphin series helicopters.The Mumbai base is approved for carry-ing out inspections on A3 rated helicop-ters that include the Dauphin SA365Ninstalled with ARRIEL 1C engine; theAS365N3 with Arriel 2C engine and theMI-172 with TV3-117 engine. The north-ern region and western region are alsoapproved for other servicing/mainte-nance of helicopter components, Theseare: C3 -rated communication and navi-gation equipment, C5-rated electricalcomponents, C6-rated equipment whichincludes ELTs, liferafts, C7-rated enginesAPU, C9-rated fuel units, C10-rated heli-copter rotors, C11-rated helicopter trans-mission such as tacho generator, C12-rated hydraulics, C13-rated instrumentslike 14 scale indicator, C14-rated landinggears, C18-rated protection instrumentslike fire detector, and C 20-rated structur-al checks, etc.

compliances in helicopter industry in India andto provide consultancy in conducting audits forvarious aviation set-ups of PSUs/state govern-ments/private operators. The institute has startedconducting courses on Aviation Safety andwould also provide consultancy services to otherclients, new start-ups and audits of various heli-pad/heliport/offshore installations.

Acquisition of new fleet: PHHL hassigned agreements with helicopter manufac-turers for purchase of ten Dauphin N3, threeAS350B3 and two Mi-172 helicopters. Thecompany has signed an agreement with ONGCon August 13, 2010 for term loan up to `275crore, being 80 per cent of the estimated costfor purchase of seven new Dauphin N3 heli-copters.

Further, the company has also signed MoUwith NTPC for long term lease of a newDauphin N3 helicopter for 10 years with loanfor 100 per cent funding for that helicopter. Tillthe delivery of the new Dauphin N3, aDauphin N has been provided to NTPC on wetlease basis.

PHHL has acquired seven new Dauphin N-3 and three AS-350 B3 helicopters till date.Further, three Dauphin N3 and two Mi-172 hel-icopters are on order and delivery of these heli-copters would take place between 2011 and2012. While ONGC has funded Rs 261 crorestowards 80 per cent of the cost of seven DauphinN-3s, NTPC has agreed to fund the cost of aDauphin N-3. The rest of the helicopters will befinanced through external borrowings.

Mid-life upgrade programme ofDauphin fleet: With a view to meeting therequirements of DGCA and the ONGC contractfor Aviation Standard-4 (AS-4) compliant heli-copters, retrofit programme for the Dauphinfleet has been undertaken in a phased manner.The programme has been undertaken for bettersafety and improved serviceability of theDauphin fleet in view of on-time monitoring ofall dynamic components and engines by thetechnical personnel of the company. Presently,

18 AS-4 compliant Dauphin helicopters afterupgrade programme are available for use.

The company has a team of dedicated high-ly motivated and skilled manpower compris-ing pilots, engineers, executives, techniciansand support staff. PHHL prides itself as a self-contained organisation with workshops cover-ing different requirements (instruments, elec-trical, safety equipment, synthetic panel, com-ponent repair shop, spectrometric Oil AnalysisProcedure Lab and radio including full testdata checks) are available on site at Mumbai..

The operating and maintenance standardsof Pawan Hans are one of the highest in theworld. All aircrew must pass proficiency testsevery six months. Maintenance crew undergoregular refresher courses. Meticulous mainte-nance checks on helicopters are carried out andextensive workshops with in-house facilitiesprovide the backup. Further, to meet therequirement of present and future helicopterrequirements of Coast Guard and other para-military forces like ITBP, BRO, BSF, etc., PHHLhas initiated the setting- up of a Joint WorkingGroup with the Ministry of Defence in thenational interest to ensure that the require-ments can be met on a consolidated basisthrough PHHL. These organisations can pro-vide funding for their requirement of helicop-ters to PHHL as PHHL needs large amounts foracquisition of helicopters.

In today’s market, there is no substitute forprofessionalism and PHHL’s staff is dedicatedto being the best in the business. PHHL’s pilots,maintenance technicians, and support person-nel are all committed to safety and serviceexcellence. Throughout its history, PHHL hastaken the initiative in developing safe opera-tional techniques in many demanding condi-tions. Whether on the ground or in the air,PHHL’s talented professionals stand ready tomeet customer. The experience and expertisewe have been developing and our dedicationsto excellence in serving our customer enable usto maintain our position of leadership.


POWER PACKED: APawan Hans chopperperforming hotlinewashing of transmissionlines.

The operatingand

maintenancestandards of

Pawan Hans areone of the

highest in theworld.

All aircrew mustpass proficiency

tests every sixmonths

PAWAN HANS

CHOPPERS

In a bid to enhance revenue earnings,Air India board has approved a propos-al to slash business class seats andincrease economy seats on its Airbusfleet. The number of business class seats

will be cut down in 34 Airbus aircraft,including A320s and A319s. It also decidedto rent out its properties at prime locations inMumbai and other cities to increase its earnings.

Meanwhile, the Union Cabinet is expect-ed to consider this package shortly to enableinclusion of the provision in the general

budget. The airline is likely to get a `10,000-crore package in the next financial year,including `6,600 crore worth of equity infu-sion, in the March 2012 budget. The Cabinetis likely to debate this package shortly toenable inclusion of the provision in the gen-eral budget, for which a Cabinet note hasalready been issued for comments to theministries concerned. The government hasinvested `1,200 crore this year, taking AirIndia’s equity base to `3,345 crore.

The Group of Ministers (GoMs), headedby Finance Minister Pranab Mukherjee,


MAHARAJA LOOKS AT REBIRTH


AIR INDIA

The governmenthas invested`1,200 crore

this year, takingAir India’s equityto `3,345 crore

THERE WAS A TIME WHEN AIR INDIA USED TO PRIDE ITSELF FOR ITS PRODUCT,WHEN INDIA’S FORMER PRIME MINISTER INDIRA GANDHI ADDRESSED THE NON-ALIGNMENT MOVEMENT’S MEETING OF HEADS OF STATE AND GOVERNMENTIN 1983-94, AIR INDIA ADVERTISED ITSELF IN MUMBAI, DELHI AND OTHERPLACES: “FROM LUSAKA TO OSAKA—THE MOST NON-MALIGNED AIRLINE.” THEREARE HOPES THAT IN THE NEXT TWO YEARS AS THE TURNAROUND PLAN TAKESEFFECT, AIR INDIA WILL COME BACK TO ITS HALCYON DAYS.

H C

TIW

ARI

cleared the financial restructuring plan forAir India, allowing it to raise `7,400 crore byissuing government-guaranteed bonds or byother means. The bond is likely to carry acoupon rate of 8.5-9 per cent. Financial insti-tutions that have lent money to Air Indiamay subscribe to these bonds, civil aviationministry officials said. The entire packagewas suggested by the GoM as part of the air-line’s financial restructuring and turnaroundplan.

Air India’s lenders have agreed to sub-scribe to `7,400 crore bonds issued by the

debt-laden airlines as an interim arrange-ment, while giving an in-principle nod to arevised debt recast package, said senior bankofficials. The bonds will be offloaded infavour of mutual funds and insurance com-panies after about six months. Lead bankerSBI has suggested that the bonds could besubscribed by banks immediately and subse-quently offloaded to other intermediarieslike mutual funds and insurances companies.In another move, Air India is planning tosave nearly `1,000 crore initially by way ofinterest on its working capital loans.


AIR INDIA

AI is planning to save `1,000crore initially byway of intereston its workingcapital loans


INDUCTING THE DREAMLINERSIf the funds are approved, it would just be intime for Air India to induct the much-delayedBoeing 787 Dreamliner aircraft, the first ofwhich is likely to join the fleet in April.However, the Cabinet has to take a call on theorder placed earlier. Air India, in the meantime, has already started preparing a scheduleon the basis of new aircraft. This involvesflights upto and more than six hours. The air-line is expected to receive 11 B787 aircraft in2012, three in 2013, 11 in 2014 and two in 2015.

Delhi and Mumbai will be operationalbases for the new aircraft. The schedule hasbeen proposed on the assumption that the air-craft will fly 4,500 hours per annum. It meansdaily utilisation of 12-13 hours. Such an utili-sation schedule can help the airline to go foreven two international stations with the helpof one aircraft.

IMPROVED NUMBERSThe carrier has turned in a good performance inJanuary with the overall revenue going by 30.4per cent over the same period last year. The aircarrier’s international revenue went up by 27.2per cent and domestic revenue is up by 36.6 percent during the month. Overall there was a 30.4per cent improvement in revenues throughoutthe network, a senior official pointed out.

Domestic capacity in terms of availableseats per kilometre increased 16.3 per cent,whereas in the overall network, it remainedstatic. The number of passengers carriedincreased 11.5 per cent on international routesand 18.1 per cent on domestic routes therebyhelping the passenger load factor to a 5.4 percent increase over the entire network.

The yields on international routes rose18.8 per cent and 16.9 per cent on domesticservices and on the network by 19.3 per cent,he said. Incidentally, Air India’s performanceis in line with the figures projected in its turn-around plan.


AIR INDIA

‘Await a vastlyimproved Air India’A BRIEF CHAT WITH ROHIT NANDAN

ON TURNING AIR INDIA AROUNDThere are no two opinions about it: eco-nomic turnaround of Air India is my num-ber one priority. It is a process that isbeing diligently followed at every level.There are regular meetings of the Groupof Ministers on the airline’s financial andoperational restructuring plans. We aregiven clear-cut directives and I view myjob as one in which the implementation ofthe turnaround plan in a defined time-frame is the key.

ON PERSONNELI run an open and transparent office. Myeffort has been to reach out to all sectionof employees, meet as many of them aspossible, seek their feedback and, ofcourse, urge all those who desire to seethe airline’s turnaround to come together.At the end of the day, it is the AI humanresources that will make all the differenceand I can see that in terms of attitude andcommitment our employees are making adifference.

ON OPERATIONSI am delighted that we have managed tolift our on-time performance beyond any-one’s wildest dreams. In fact, making surethat we take off on time and land on timewas my first priority. That, literally, setsyour ground staff and operational team inabsolute sync and resolves a variety ofissues. It also helped project a picture ofAir India that is professional and in keep-ing with the service-oriented nature ofthis industry.

ON MEETING THE COMPETITIONIt’s a different India… An aspirationalIndia where the young form the majorityof the demographic matrix. They arewanting to traverse the globe, experimentand explore. Air India is perfectly poisedto tap into this vast market, but we knowwe have our job cut out while facing com-petition not just from foreign airlines butfrom our fellow Indian airline operators.

FINAL WORDWe are improving every day, every hour,every minute.

(An enlarged version of this interviewhas appeared in the regular edition ofCRUISING HEIGHTS)

CORRECTING THEWRONG: Justice (Retd.)D M Dharmadhikaripresenting the reporton Air India HR issuesto the Union Ministerfor Civil Aviation, AjitSingh.

“I run an openoffice. My effort

has been toreach out to all

section ofemployees, meetas many of themas possible, seek

their feedbackand, of course,urge all thosewho desire to

see the airline’sturnaround to

come together.”Rohit Nandan

CEO & MD, Air India

PIB

Indian aviation enters 2012 facing its mostcritical challenges since the advent of the2004 industry reforms. The paradox ofIndia’s airline sector is that it serves one ofthe world’s fastest growing economies and

is posting double-digit traffic growth, yet theCentre for Asia Pacific Aviation (CAPA) esti-mates Indian carriers combined will lose $2.5billion in the 12 months ending March 31, 2012.This is on total revenues of just under $10 bil-lion — a worse result than in FY2008-09, whentraffic was declining and fuel prices spiked at$150/barrel. In the domestic market, India’s air-lines lose $25-30 every time a passenger boardsan aircraft. This situation has promptedunprecedented intervention by the PrimeMinister, who has outlined a 12-point agenda,upon which the Ministry of Civil Aviation mustreport every month.

POLICY PARALYSIS; SLOW ECONOMY The outlook for the operating environment in2012 is not encouraging. India’s economy hasslowed noticeably in the last two quarters andGDP growth for this current fiscal year is likelyto be closer to 7 per cent than the 8.5-9.0 per centforecast at the start of the year. With increasingconcerns about the direction of the global econ-omy, India’s growth in FY2012-13 could possi-bly dip below 7 per cent. This is a rate of expan-sion that most economies would envy, but itfalls short of the government’s own targets and of the growth needed to achieve the government’s employment-generation and poverty-alleviation objectives.

Negative global economic sentiment, led bythe financial crisis in Western Europe, is onlypartly to blame. India’s slowdown has largelybeen driven by internal factors, primarily a gov-ernment at the centre that has been plagued bycorruption and governance scandals. Thesehave diverted attention from implementing thereforms needed to modernise the economy,directly frustrating investors. Capital has conse-quently been fleeing the country, depreciatingthe Indian rupee by almost 20 per cent sinceSeptember 2011. For the airline industry theresult is higher costs: fuel, aircraft leases andmaintenance.

AIR INDIA IS CREATING THE PROBLEMThe lack of reform within the aviation ministryitself — without a dedicated minister sinceJanuary 2011 — has served to heighten paraly-sis at the macro level. For almost the entire yearVayalar Ravi, Minister of Overseas IndianAffairs, had the Ministry merely tacked onto hismain role. His almost exclusive obsession withAir India caused policy inertia, seriously dam-aging the entire industry. Perhaps, the most ret-rograde decision has been to grant Air India firstright of refusal on private carrier applicationsfor international traffic rights. These nationalassets — in the form of bilateral entitlements —are thus being viewed through the prism of aseriously bankrupt company. Air India has lim-ited capability to operate new routes, mean-while blocking private carriers from doing so.As has happened so many times before, the onlywinners in this scenario are foreign airlines from


The outlook for the

operatingenvironment

in 2012 is not encouraging.

India’s economy

has slowednoticeably

in the last twoquarters

THE COMING 12 MONTHS WILL BE THE MOST CRUCIAL FOR THE FLOUNDERING AVIATIONINDUSTRY, COMMENTS KAPIL KAUL. AND THE SITUATION WILL NOT EASE ONE BIT WHAT WITHRISING FUEL AND AIRPORT COSTS TO NAME A FEW. THE INDUSTRY, HOWEVER, CAN SEE BETTER TIMES IF THE RIGHT DECISIONS ARE TAKEN.

KAPIL KAUL

Aviation sector faces its

most critical phase

EXPERT VIEW


whom Air India is being “protected”.Despite the pre-occupation with Air India,

the airline has no turnaround plan. Its solestrategy is to spend up to $1 billion annually ingovernment subsidy throughout the comingdecade — as much as the entire national highereducation budget. Why this is necessary whenthere are perfectly good private sector operatorsready and able to offer air services simply beg-gars belief. But there is worse: to generate cashflow, Air India is pursuing a suicidal taxpayer-funded commercial policy, discounting faresthat private carriers are forced to match. Here isthe main cause of the losses posted by theindustry, taxpayers’ money being used to desta-bilise private sector airlines. Passengers haveenjoyed a temporary consumer surplus, benefit-ing from cheap airfares, but an unviable sectoris not ultimately in the interests of the travellingpublic.

FOCUS ON INDUSTRY VIABILITYMeanwhile, the government visibly continuesto micro-manage issues such as the rights ofairlines to sell exit row seats or charge foradditional checked-in luggage. Seasonalincreases in demand, which results in higherfares trigger scrutiny by the regulator — yetthere is no intervention in the case of predato-ry pricing. If airlines cannot charge higherfares during peak season to counter losses dur-ing the leaner months it is simply not possibleto maintain a viable operation. And quiteclearly the losses incurred by the industryindicate that airlines can hardly be accused ofprice gouging.

Rather than focusing on micro issues, the

Ministry of Civil Aviation’s objective should beto create an environment, which recognisesand supports industry viability and competi-tiveness. The sector must be in a position tooperate safely and efficiently, delivering sus-tained and reasonable profits and covering itscost of capital.

A DEDICATED MINISTER IS A POSITIVEOn December 18, 2011, Ajit Singh took overVayalar Ravi’s civil aviation responsibilities. Adedicated minister is a positive development,but a change of leadership at this critical timemeans that uncertainty will persist, especiallyin the absence of a clear-strategic frameworkfor the sector. Ajit Singh’s task is to create anenvironment that will allow airlines andindeed the broader aviation industry, tobecome viable. Even airports and general avia-tion operators are struggling. The solutions arerelatively easy to identify but the weak link isthe political and bureaucratic will.

FINANCIAL RECOVERY WILL BE SLOWRecovery, particularly for the full-service carri-ers, Air India, Jet Airways and Kingfisher, will beslow. India’s airlines have approximately $16 bil-lion in debt, including outstanding payments tovendors, of which $6-7 billion is for aircraft-relat-ed loans. Air India’s debt will increase by a fur-ther $4 billion if it proceeds with plans to pur-chase its order for 27 Boeing 787s, generating anannual interest burden of $1.25-1.50 billion. Acombination of low fares and sustained highcosts, thus make sustainability unlikely. Severalexpenses have been out of the control of the air-lines, fuel for example has been at elevated levels


Rather thanfocusing on

micro issues, theMinistry of Civil

Aviation’sobjective shouldbe to create an

environmentwhich recognises

and supportsindustry

viability andcompetitiveness

EXPERT VIEW

CAUGHT ON THEWRONG FOOT:Anxious flyers checkout the information display board atBengaluru airport.

for almost 12 months, general inflation in Indiahas been at close to double digits, airport andground-handling charges have been increasing,and a shortage of skilled labour means that wagepressures are mounting.

Under these challenging circumstancesIndia’s airlines have struggled to raise capital.Aside from Air India’s equity infusion from thegovernment and a preferential shares issue bySpiceJet, plans to raise in excess of $1 billionfrom capital markets have been deferred. Thesituation has been made more difficult byrecord low market caps for the listed carriers —several carriers have immediate financingrequirements greater than their current marketcap. Aircraft financing has also dried up andcarriers are increasingly turning to leasing tofinance their aircraft deliveries. Heading into2012 airlines will continue to struggle to raiseequity and will need to take on additional debt,further eroding viability. Banks have become acritical pillar of the aviation sector — to datethey have provided invaluable support to AirIndia and Kingfisher Airlines, but in 2012 theyare likely to be called upon by even more carri-ers, increasing their aviation exposure furtherabove the current $6 billion. The negativeimpact on the balance sheets of Indian publicsector banks in particular could create a politi-cal issue in itself.

AIRPORTS’ FINANCIAL CHALLENGESMeanwhile, private and state-owned airportoperators continue to struggle. The operators ofDelhi and Mumbai airports have invested $5billion in modernising these facilities but therevenue collection has been less than expecteddue to the economic regulator not permitting adual-till framework, while the Supreme Courtordered both airports to cease collection ofAirport Development Fees from passengers,pending approval by the Airports EconomicRegulatory Authority. The single-till/dual-tilldebate must end as the overall regulatoryapproach is known and we need to ensure fairreturns to the investor while protecting con-sumer interests.

The state-owned Airports Authority ofIndia (AAI), which has 125 airports under itscontrol, of which around 85 handle scheduledservices, is also in a state of financial distress.CAPA estimates that airlines have accumulatedapproximately $240 million in outstanding pay-ments to the AAI, which meanwhile continuesto face significant capital expenditure commit-ments to support its extensive airport moderni-sation programme — creating a cash crunch forthem too. The AAI’s complex business model,which includes managing the largest portfolioof airports in the world under a single operator,investing huge capex in airports which arelargely loss-making and the provision of airnavigation services, will come under increasingpressure in 2012.

SOLUTIONS AND IMPLEMENTATIONThe government can easily take immediate stepsto assist the sector. These include reducing thepunitive sales taxation on aviation turbine fuel byincluding ATF under the ‘declared good status’asallowing import of ATF is not practical due toinfrastructural and logistics challenges; permit-ting foreign airlines to acquire up to a 49 per centshareholding in Indian carriers (a proposal nowbefore Cabinet); approving private carrier appli-cations for international rights in a rationale andtransparent manner(approved recently, detailsawaited); removing restrictions on ancillary rev-enues; and obliging more rational pricing by AirIndia and other industry players. Ensuring a costplus pricing is critical to the long-term viabilityand competitiveness of the airline sector.

In the longer term, the focus needs to be oncreating a well-structured policy and regulatoryframework and on enhancing the efficiency ofthe nation’s aviation infrastructure, particularlyairports and airspace.

The fundamental drivers of aviation growthin India remain strong and it should emerge asthe third-largest market in the world within fiveyears. But this will require important decisionsin 2012 by government and operators alike toposition Indian aviation as a safe, efficient andviable sector. With just two years to go until thenext elections, the sad prospect presents, how-ever, of a government which will be preparedonly to allow the rot to persist. Yet an active AjitSingh has it within his grasp to engrave hisname as the Minister who turned aroundIndia’s flailing aviation industry.

(The writer is CEO, South Asia, Centre for AsiaPacific Aviation)


The state-ownedAirports

Authority of India(AAI), which has

125 airportsunder its control,of which around

85 handlescheduled

services, is alsoin a state of

financial distress

EXPERT VIEWH C TIW

ARI

TOUGH TASK AHEAD:Ministry of CivilAviation headquarters.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2TRAINING


The Chairman of the Airports Authorityof India (AAI), V P Agrawal capturedthe spirit of the Indian AviationAcademy (IAA) correctly when heobserved that in an environment of fast

changing technology what matters most is the“Man” behind the machine and not themachine itself. In line with the establishment ofIAA and the training it is imparting to airportpersonnel to meet the increasing challenges —be it in terms of technology or holistic manage-ment of the airport sector itself — theChairman could not have expressed it better.

V P Agrawal made his remarks on the occa-sion of the completion of the first year of theconstitution of IAA in Delhi under the aegis ofNIAMAR (National Institute of AviationManagement and Research). IAA is a successorto NIAMAR which itself is a product of a MoUbetween AAI, Directorate General of CivilAviation (DGCA) and Bureau of Civil AviationSecurity (BCAS). Constituted as anautonomous society, NIAMAR was formedunder the Societies Act on July 22, 2010.

Subsequently, the IAA was set up with themain objective of developing it as a centre ofexcellence in the area of education, training andresearch in aviation in the Asia Pacific region.

On the completion of the first year inMarch 2012, IAA has taken major stepstowards developing the skills of a large poolof efficient manpower of AAI, BCAS andDGCA through technical advancement andconsequent refinement of operating standardsand procedures including new standards ofsafety, security and improvement in manage-ment techniques. The training imparted forairport management caters to airport opera-tions, airport engineering, construction, main-tenance and project management, airportfinance, human resources management, air-port commercial and land management, avia-tion law, aviation security and safety besidesaviation cargo management. According to theAAI Chairman, IAA in time to come willbecome not only a boon for the three partnersbut also other stakeholders of the Indian avia-tion industry as well as those outside.

INDIA TAKES THE LEAD TO TRAIN AVIATION PERSONNELBARELY A YEAR OLD, THE INDIAN AVIATION ACADEMY HAS SET A BLISTERINGPACE OF TRAINING AVIATION PERSONNEL FROM THE COUNTRY AS WELL AS THEASIA PACIFIC REGION. A REPORT.

IAA has taken major

steps towardsdeveloping

the skills of a large pool of

efficientmanpower of

AAI, BCAS and the

DGCA throughtechnical

advancement

Hem

ant R

awat

Speaking to CRUISING HEIGHTS, DineshKumar, Director of IAA, said as India pro-gresses towards becoming a major player in theaviation scenario worldwide, the biggest chal-lenge will be to fill the desired level of skillsrequired by the personnel engaged in differentspecialised fields in the aviation industry. Onthe completion of the first year of the IndianAviation Academy, indications are that it willgo a long way to meet the challenges as well asthe need for development of skills in variousfields of airport management, aviation regula-tion and aviation security. The academy hastaken the initiative of formalising the ICAO-India developing countries training pro-grammes in airport operations management,airport commercial management, general air-port management, airport security manage-ment, etc. The academy offers courses in 15areas presently that range from airport opera-tions and airport engineering to airportfinance, international aviation law as well asdangerous goods regulations. An MoU withICAO has also been signed to conduct fellow-ship programmes for developing countries.This MoU specifically covers courses like air-port certification; safety management systems;airport security management; airport commer-cial management; airport operations manage-ment and airport cargo management. Aviationofficials from a number of countries — Syria,Saint Lucia, Bangladesh, Mauritius,Zimbabwe, Namibia, South Africa, Uganda,Thailand, Philippines, Mongolia, Guatemala,Eritrea and Pakistan — have participated invarious fellowship programmes.

Referring to specifics, Dinesh Kumar noted

that courses relating to airport security coveredissues like unlawful interference, etc. This isbasically the domain of BCAS. As for DGCA,the training capsules relate to licensing of air-ports and air worthiness. In a way all the threesignatories to the MoU bring their own expert-ise. While DGCA brings in the licensing aspect,BCAS the security and AAI the airport man-agement aspect. In fact, airport management isa very wide term and the spectrum includesmanagement of the terminal, operations, andsuch sectoral details such as commercial main-ly retail, land, human resources, managementof finances and air cargo management underwhich hazardous goods are also coveredthough it is a separate topic by itself. BeforeIAA was constituted, NIAMAR (before it cameunder the Societies Act) related instituteimparted training only to AAI officers. AfterNIAMAR was brought under the Societies Actin August 2010 and subsequently it was suc-ceeded by IAA, the training facilities have beenopened to external candidates as well whoinclude not only the private airport operatorsin India but also other airport operators, eitherstate owned or otherwise from different partsof the world. Recently, IAA imparted 10 weekstraining to 20 students from Afghanistan onthe whole gamut of airport managementincluding the theory of air navigation system.All the 20 were civil aviation personnel.Earlier, a batch of 22 from the Delhi, Mumbai,Bengaluru, Hyderabad and Cochin airportswere given specific training to update theirskills.

Kumar also pointed out that the idea ofAAI Chairman V P Agrawal was to convert the


A LEAP AHEAD:(Clockwise from topleft) A class in progressin the academy; CivilAviation Secretary DrNasim Zaidi (third fromleft) and AAI ChairmanV P Agrawal (fourthfrom left) along withthe officials of ICAO atthe signing of MoU toconduct fellowshipprogrammes for devel-oping countries; viewof the lobby at IAA; andIAA Director DineshKumar.

TRAINING


Academy into a full-fledged AviationUniversity in the coming years. “Right now weare in a formative stage. However, a DetailedProject Report (DPR) has been prepared sug-gesting the road map to convert the academyinto a university,” he said. The Secretary, CivilAviation, Dr Nasim Zaidi, has taken keeninterest in the institution and has expressedthe view that in the years to come, the IndianAviation Academy will formulate and deliverworld class management training and educa-tional programmes and develop as a centre of

excellence and ultimately a deemed universityin the Asia Pacific region to begin with andglobal in due course of time. Come April,Dinesh Kumar said that the Academy wouldhold two IATA programmes relating to airportmanagement and air cargo management foroutsiders. “During fiscal 2011-12, in its firstyear of coming into being, the Academy hastrained about 2500 people. I would like topoint out that not just airport operators andrelated staff, we have also got participantsfrom the BSF and NBCC,” said Kumar. TheIAA Director also mentioned that apart fromgeneral airport management there were somevery key aspects that needed to be understood.“I would like to draw the attention of everyoneto ‘acts of unlawful interference’ and constantthreats these posed to the safety and securityof civil aviation operations. It is here onewould require a huge team of trained and pro-fessional security officials besides spreadingawareness about security,” said Kumar.According to IAA Director, the faculty of theacademy has both regular and visiting faculty.There is also a hostel with 28 air-conditionedrooms for trainees/participants besides air-conditioned suites for visiting faculty.


As the aviation sector becomes complexwith modern aircraft and airports getbigger to cater to increasing load of

passengers, so do the management of air-ports and other ground services. Humanresources have to be constantly upgraded inthe fields of airport operations, airport engi-neering (construction, maintenance andproject management), cargo management,airport finance, airport commercial andland management, HR management andaviation law.

The Indian Aviation Academy caters torequirement of training of personnel of theAirports Authority of India, DirectorGeneral of Civil Aviation (DGCA) andBureau of Civil Aviation Security (BCAS)under one roof. The objective: to becomecentre for global excellence in areas of edu-cation, training and research in aviation inthe Asia-Pacific region. Its aim is also tobecome a deemed university in due course.

Located near the airport and spread outover an area of five acres, IAA’s infrastruc-ture and teaching facilities are state-of-the-art and comparable to the best civil aviationtraining institutes around the world. Thelecture rooms and laboratories at theAcademy are equipped with the latestteaching/training aids including computers,multi-media projectors, flip boards, videoprojectors, video cameras, etc. To promote

research, the Academy also has a well-equipped library with books on aviationand airports and subscribes to leading pub-lications worldwide in the aviation sector.

The course domains are: Cargo operations.Airport passenger operations.Airport commercial aspects.HRD courses.Airport finance.Airport engineering.Aviation law.IT operations.

The Academy is accredited by IATA andDGCA to conduct courses on DangerousGoods Regulations, on a regular basis.BCAS has also approved the Academy fortraining in Aviation Safety and Security.Under the guidance of International CivilAviation Organisation (ICAO), theAcademy has set up a Course DevelopmentUnit under ICAO TRAINAIR Programmefor developing standardised training pack-ages (STPs) in the field of aviation. It hasalready developed two STPs, on ‘BirdHazard Control Management’ and ‘AviationPavements Maintenance’. Four more STPson ‘Airport Passenger TerminalManagement’, ‘Contracting for AirportConstruction’, ‘Contracting for Procurementof Equipment’ and ‘Contracting for AirportServices’ are under preparation.

Professional courses for aviation personnel

The Academy is accredited byIATA and DGCA

to conductcourses onDangerous

GoodsRegulations, ona regular basis

BRANDING AT ITS BEST: :(L-R) AAI Chairman, V PAgrawal; DGCA E K BharatBhushan; Former CivilAviation Minister VayalarRavi; Civil AviationSecretary Dr Nasim Zaidi;G S Malhi, Chief, BCAS andAERA Chief Dr YashwantBhave at the unveiling ofIndian Aviation Academylogo at the AirportsDirectors' conference.



WORLD-CLASS TRAINING FROM CATC THE PIONEER TRAINING INSTITUTE FOR CNS-ATM IN THE COUNTRY, THE ALLAHABAD-BASEDCIVIL AVIATION TRAINING COLLEGE HAS BEEN DOING YEOMAN’S SERVICE BY PROVIDINGHIGHLY-QUALIFIED PERSONNEL TO MAN OUR AIRPORTS. A MEMBER OF THE ICAO-TRAINAIRPROGRAMME, THE COLLEGE ALSO PROVIDES TRAINING TO AVIATION PERSONNEL FROMABROAD.


TRAINING

The Civil Aviation Training Centre atAllahabad was established by theDirector General Civil Aviation in 1948and now is a part of the AirportsAuthority of India. Renamed as Civil

Aviation Training College (CATC), it has beena member of the ICAO TRAINAIR pro-gramme that guides aviation trainingthroughout the world. In fact, as a pioneerinstitute in the country, it has been impartingtraining in various aviation fields with itsmain training areas being CNS technologyand air-traffic management.

Ever since its establishment it has been themain source of producing technical personnelin the CNS and ATM fields. In the CNSstream, it trains personnel who are trained formaintenance, repair, calibration and operationof ground-to-ground and air-to-groundequipment. The college boasts of state-of-the-art equipment for high frequencies and veryhigh frequencies and high-speed data trans-mission sophisticated lines working on theworld wide network.

Another field is the maintenance and repairof navigational aids spread across the Indian con-tinent which has non-directional radio beacons,very high frequency Omni range (VOR)

transmitters and DMEs that are used for naviga-tion by flights. The CNS technical officers aretrained at CATC to maintain the equipment.

Similarly, training on radars technologyhas been imparted from the times when darkroom radars were in use. At present, state-of-the-art equipment is in use in our country andthe complete technology is maintained by theCNS officers trained at CATC. Terminal navi-gational aids such as the Instrument LandingSystems, surface radars and internal commu-nication systems are always in the hands ofthe people trained at CATC. The maintenanceof the systems used in the air-traffic controlunits in the country is done by these capableofficers from the CNS discipline.

The Air Traffic Management branchimparts training to controllers in ApronManagement Service, Surface MovementControl of the Aircraft, Aerodrome ControlOperations, Approach Control Service toArriving and Departing Flights, enroute serv-ice to the flights in the controlled areas, flightinformation regions and the overflying trafficacross the continents.

Other special courses concerned withimprovement of skills, proficiency, obstacle limi-tation surfaces, search and rescue have been con-ducted and are conducted regularly. The aviationgrowth and the management of airspace of thecountry have been managed successfully by theAir Traffic Controllers trained in the CATC.

Training departments: The college has twotraining departments. The CNS departmenthas the communication and the security sys-tems, navigation aids, surveillance aids andautomation sections. The ATM departmenthas the Aerodrome Control, the ApproachControl, the Terminal Area Control, SpecialCourses and the Civil Airport Terminal sec-tions. Every section has its training curricu-lum and conducts courses as needed for oper-ation of the airports and the air-navigationservices. There are other supporting sectionssuch as the Meteorological, HumanResources, Finance, Civil and Electrical,Hostel Management, Course DevelopmentUnit, Hospital and Transport.

During 2008, the college conducted 51courses in ATM, 32 courses in CNS andone course in other category. In 2009, there were 38 courses in ATMand 40 courses in CNS and four coursesin other categories 2010: There were 36 courses in ATM and30 courses in CNS and two courses inother categories. On an average 650 persons are trainedevery year.

HIGH OUTPUT

Other specialcourses

concerned withimprovement of

skills,proficiency,

obstaclelimitation

surfaces, searchand rescue havebeen conducted

and areconductedregularly Continued on Page 152


The CATC at Allahabad enjoys a special place.Established in 1948, it has undergone manychanges and is today one of the foremosttraining establishments for CNS and ATMdisciplines in the country and the region.

Give us a brief history of your institutionand its transformation from what it was earli-er to what is now CATC. What was the spiritbehind its setting up by DGCA in 1948 and itsnew avatar now?CATC Allahabad, the training establishment ofthe Airports Authority of India, is the 'AlmaMater' of Air Traffic Controllers andCommunication engineers. In the review of civilaviation in India in 1948, M C Ghosh, the thenDGCA, had disclosed that between July 1, 1947and June 30, 1948, the number of flying hours,the distance flown and the freight carried hadincreased considerably rather than that duringthe previous year. It was decided to establish aflying training school and an airfield school atAllahabad. CATC came into existence at its pres-ent location in 1948. It functioned under theministry of communication until a separate min-istry of civil aviation was created in the 1950s.The establishment was initially known as theCivil Aviation Training Centre and impartedtraining in various technical aspects of aircraftoperations: flying, aircraft maintenance, air traf-fic control, navigational and communicationequipment and operational procedures.

Ever since the establishment of CATC, it hasconducted many professional as well as refresh-er courses for Pilots, Air Force Personnel,

Maritime Officers, Air TrafficControllers, AerodromeAssistants, CommunicationOfficers, CNS Technical Officersand Technical Staff.

The CATC estate has a sprawlof about 100 acres. Till the mid-90s, the barracks of World War IIera accommodated classroomsand other associated buildings. In1963, the associated aerodromewas taken over by the Indian AirForce to establish Central AirCommand at Allahabad and thus,there are no flying training cours-es in CATC.

CATC became a part of theNational Airports Authority ofIndia in 1985 and its name waschanged to Civil Aviation

Training College in 1990. Subsequently, NAAwas merged with International AirportsAuthority of India and rechristened AirportsAuthority of India (AAI) by an Act in 1995 andthe centre/college remains a part of the AAI.

The objective of the establishment of thetraining centre has been done for the fulfillmentof training needs of the Airports Authority ofIndia under the powers of AAI Act 1994,Chapter III Article 12(d). A new institute com-plex was constructed during the 1992-96 at acost of `35 crore under UNDP programme.Improvements and addition to existing infra-structure have since been continuously carriedout in CATC. There are 12 classrooms and 34technical laboratories for CNS executives andATM executives. In addition, there is a confer-ence hall, a seminar hall and a full-fledgedmodel audio-visual auditorium. The recreationinfrastructure includes gymnasium, table ten-nis, lawn tennis, badminton, basketball, cricket,football, and swimming pool.

Why was Allahabad chosen for this insti-tute when today there are hardly any flights tothe city?That was because of the city’s historical linkagewith aviation. The first civil airmail flight wasoperated from Allahabad in 1911. Allahabad isone of the four airports established for the firsttime in India in 1929.

Allahabad was the chosen capital of thethen Northern province even beforeIndependence and there were regular civilscheduled flights and training flights at

THE ‘ALMA MATER’ OF ATCS AND COMMUNICATION ENGINEERS


KEEN STUDENTS: A classin progress at CATC.

The objective ofthe

establishment ofthe training

centre has beendone for thefulfillment of

trainingneeds of the

AirportsAuthority of Indiaunder the powersof AAI Act 1994

BAKSHISH SINGH, EXECUTIVE DIRECTOR, CATC, ON THE HISTORY OF CATC AND TRAINING

Allahabad. It was one among four airports thatwas operational during that period.

Historically, the centre has a full-fledgedestablished infrastructure for training with resi-dential facilities, so relocating the centre tosome other city may not be economically viable.

Could you please tell us the important mile-stones in this "educational" institution whichtrains personnel for CNS and ATM?CATC became a member of TRAINAIR (ICAO)in 1993 and developed seven Standard TrainingPackage courses. New infrastructure includingclassrooms, ATC Simulator and hostel weredeveloped under the UNDP Programmebetween 1995 and 2002. Efforts are on to upgradeCATC from TRAINAIR to TRAINAIR-Plus.

CATC has already been audited by theICAO auditor to become TRAINAIR-Plus asso-ciate. The objective of the assessment was toevaluate the capability of the Training Centre tomanage and conduct the ATM and CNS train-ing courses and use of STP within the estab-lished quality system.

TRAINAIR-Plus audit has been conduct-ed by ICAO assessor for associate membershipof ICAO TRAINAIR-Plus certification.

Enhancement of training capacity forATM Directorate to accommodate initialTraining for special requirement drive ofATCOs by Ministry of Civil Aviation.

Establishment of Gondia and HyderabadTraining Centre as a extended training centrefor ATM training to meet the growing demandof ATCOs.

Modern non-radar simulator wasinstalled and is in the process of commissioningfor training from March 2012.

Our international customers are Ethiopia,Surinam, Mauritius, Afghanistan, Yemen, SriLanka, Nepal and Bhutan.

Between the CNS and ATM which streamwitnesses faster obsolescence in terms ofequipment installed and why? Does it meanthat personnel need to go for more frequentre-training?These are maintained by those from the CNSdiscipline. This equipment is used by Air TrafficManagers and thus, recurring training isrequired for both CNS personnel and ATM per-sonnel for operating the latest equipment.CATC conducts induction-level courses fornewly-recruited personnel as well as refreshertraining and advanced courses for proficiencyand career progression.

CATC being a member of ICAOTRAINAIR, what are the internationallyaccepted-norms? How often do you revise thecourses you offer or teach to AAI staffers?The norms that are laid down by ICAOTRAINAIR-Plus programme are:I. Facilities and technology supporting training;

II. Training delivery;III. Instructional personnel quality;IV. Training design and development; and, V. Training quality system

ICAO TRAINAIR-Plus methodology is thebasis for designing the course materials. Eitherthe Standardised Training Packages (STPs) devel-oped by other countries are imported for trainingor course materials are developed in-house.

Competency-based training: All theinstructors undergo through a programme oftraining of the trainers before they are declaredcompetent in their subjects. They are regularlysubject to proficiency tests. There are skilldevelopment programmes for them.

Quality standards: Rigorous quality stan-dards have been worked out; performance isevaluated on the basis of standards.

Learner-centric training: The training styleis learner-centric. There are only 10 or 12 stu-dents in every class. The teachers follow thestandard instructional techniques in theoryclasses, lesson plans designed to test the effec-tiveness of the delivery. The controllers aremade to work in low-density traffic in thebeginning and slowly move to medium densityand then to the highest density of traffic underdifficult conditions and emergency situations.

The equipment installed at the training cen-tre— especially the Simulators — are they thelatest or have they been upgraded ?The equipment installed at CATC is the latestand upgraded periodically depending on thetraining requirement. At present, the AudioVisual simulator from Singapore Technologiesand the Radar simulator from CAE Canada arebeing used for ATM training. The latestProcedural Non Radar simulator from ADA-CEL of Canada is in last phase of installationand commissioning.

At present, there are about 200 students ineach of the two streams: CNS and ATM. Butwith rising passenger traffic, more aircraft andmany new airports coming up, where do yousee the requirement of engineers and how willthe demand be met?The requirement of CNS and ATM is increasingat all the airports; therefore, there is increasingdemands for both ATCs and CNS engineers tomeet the requirement.

How many students have passed out orwere trained by the Centre?CATC imparts training in the field of ATM andCNS discipline. It has trained personnel fromforeign countries also. The total number of for-eign nationals trained between year 2001 and2010 is 66.The total number of AAI personnel trained byCATC between January 2009 to January 2012 is2177 including foreign nationals in both ATMand CNS discipline.


CATC impartstraining

in thefield of

ATM andCNS

discipline.It has trained

personnelfrom foreign

countriesalso

TRAINING

The college also trains personnel fromEthiopia, Surinam, Mauritius, Afghanistan,Yemen, Sri Lanka, Nepal and Bhutan.

Training Quality: The Training Qualitypolicy states that the Civil Aviation TrainingCollege/Centre (CATC) Allahabad shall:

Determine the training needs of all thepersonnel of Airports Authority of Indiaworking in various departments through-out the country and review the needsevery year with respect to the changes orupgradation in the aerodromes, airportoperations, ground handling operationsand air navigation services, communica-tion, navigation and surveillance facilitiesand other aviation-related subjects andpublish a training calendar every year. Deliver the training output as per thetraining needs determined. Achieve the highest standards of trainingby adopting the international standards ofICAO, TRAINAIR; national standards laiddown by the DGCA, India, for communi-cation, navigation aids, surveillance aids,aerodromes and aerodrome operations, airnavigation services, search and rescue, fireand rescue operations, safety and securityin air traffic services.

Share the training with other stakeholderswithin the country and outside the coun-try.

Provide training to any other customers. Strive for continual improvement in thetraining quality by setting targets, meas-ure the performance and review regularly. The instructors of the college are highly qual-

ified and comprise the best selected technical offi-cers and ATC officers with experience in mainte-nance of CNS equipment. They have practicalexperience in airport management and opera-tions as well as in air-navigation services andhold current ratings in technical units and theATC units. State-of-the-art simulators in aero-drome control training, approach control andenroute sections are utilised in the training of per-sonnel. The latest equipment in CNS trainingsuch as Doppler VOR-Thales, DME-Thales,NORMARC ILS, NDB-SAC, VHF-OTE, HF-ZENETEL, AMSS-ECIL, etc. are available for

training. Training design and development: The

CATC compiles data for various cadres andthe upcoming technological additions at air-ports and navigation centres based upon thejob profile of the people and analyses it todetermine the training needs of the nation.

Training capacity: At present 200 studentsin ATM and 200 students in CNS can beaccommodated at a time in various courses

Competency based training: All theinstructors undergo a programme of trainingbefore they are declared competent in theirsubjects.

Quality standards: Stringent quality stan-dards have been laid down and the results areevaluated regularly. Continual improvementsin the manner of teaching as well as review ofthe courses are done as and when needed.

Learner-centric training: The training style islearner centric. There are 10 or 12 students inevery class and teachers follow standard instruc-tional techniques for the theory classes, while les-son plans are designed to test the effectiveness ofthe delivery. Simulator exercises too are formu-lated keeping in mind contemporary needs. Thecontrollers are made to work in low-density traf-fic in the beginning and gradually upgraded tomedium and high density of traffic under diffi-cult conditions and emergency situations.

The college has excellent hostel facilities fornearly 450 students. While there are 50 air-con-ditioned rooms equipped with TVs and refrig-erators for international students, there are sep-arate air cooled rooms for ladies and gents.

The college authorities are fully aware of theworldwide growth in civil aviation, theupsurge in the technology of air-navigationservices, the operational safety of aerodromesand associated fields. The staff at the collegework towards the continual improvement in thetraining methodology. It has set a high bench-mark and is moving ahead in close cooperationwith national and international stakeholdersand customers to achieve its vision: “To be aworld-class training institute by 2013 capable tocreate Next Gen aviation officials to meet thetraining needs of the country and fulfill theexpectations of ICAO.”

State-of-the-artsimulators in

aerodromecontrol

training,approach

control anden-route

sections areutilised in the

training ofpersonnel



KEEN-LEARNERS: (L-R)Personnel having hands-onpractical training in an ATCroom; and, personnel takinglessons in a classroom.

Continued from Page 149


I f you Google search “airhostess training”like I did, you'll find over 2 lakh sites list-ed just for India. Of these 98 per cent willbe advertising an academy or institutethat “claim” to train airhostesses. I say

“claim” only because that's what it is — a“claim”. Try calling any of them and you'llfind either the number is disconnected orwrong — even those number listed on officialWebsites. I was lucky and persistent enoughto discover just about a handful of academiesthat were operational and still providedairhostess training. It's like the war endedbefore it even started. It makes one think,what do aspiring airhostesses do when theycome across such a hurdle? And this is justone of many they'll be facing throughout theirtraining and career. The next hurdle is gettinginto one of these few institutes and hopingthat it remains open long enough to give you

a diploma so you can at least begin a career inthis line. Research shows that of all the stu-dents who get in such academies, many optout before even completing the coursebecause they are so disillusioned and discour-aged, seeking another line of profession. Andof those who pass out, only small factionemerges in roles with the airlines, even ifthey've been trained by an airline-ownedacademy! So all that glitters may not be goldin this line of profession.

THE SCENARIOSo what really is the scenario of airhostesstraining in India today? Looking at the basesituation, I would say not too good. There aretwo primary kinds of academies available tostudents in India today — an airline trainingacademy and a stand-alone academy. Therewas a time when academies were pop up all


There are twoprimary kinds of

academiesavailable to

students in Indiatoday — an

airline trainingacademy and a

stand-aloneacademy

A COUPLE OF YEAR AGO, THE AVIATION INDUSTRY WAS SEVERELY HIT, EFFECTING ESPECIALLYTHOSE WHO WERE ASPIRING TO JOIN IT AS YOUNG ENTHUSIASTIC CREW MEMBERS. TODAYTHE INDUSTRY SEEMS TO BE ON THE MEND AND SOME EVEN CLAIM IT'S DOING VERY WELL,BUT WHAT DOES THAT REALLY MEAN TO THOSE WHO HAD ONCE WANTED TO BE A PART OF IT,ASKS MEGHNA BHADURI.

WHO WILL ATTEND THE FLIGHTS?

IN WATER: Students of Urasia Aviation Academy during a swimming drill.

over the country, but largely due to the reces-sion of 2009 most closed down. Even airline-training academies wound up shop, except fora couple like Kingfisher, which started inApril 2007 in Mumbai but never expanded theway it had been envisaged. And those stand-alone academies which survived, had todiversify from instructing flight attendants totraining them in hospitality, customer careservices, and airport duties. Amongst themwas Frankfinn Airhostess Training Institute,which had to add two new elements to theirportfolio — travel and hospitality.

KEEPING UP THE SUPPLYThere is clearly an increase in the number ofairlines operating in India. But are the remain-ing few academies and institutes able to keepup with producing enough trained personalrequired in the industry today? An optimisticSamir Valia, President, Frankfinn AirhostessTraining Institute, says yes. “Over the last fewyears, requirements of these various airlineshave pretty much been met. The only issuehas been that since 2008 many branded insti-tutes have wound up largely due to the reces-sion in 2009. But mid-way through 2010 and2011, the numbers once again rose and domes-tic and even international airlines have beencoming in regularly and recruiting.”

According to Anshu Bery, COO, FlyingCats and Global Retail School, who believesthat the civil aviation industry is witnessing arevolution in its 100th year of operations inIndia and domestic carriers are expandinginto international operations, aviation schoolsare now mushrooming again all over India tomatch the industry demand; but quality train-

ing is a big question mark with most of them.Less optimistic, owner of International Travel& Tourism Academy, Sanjiv Mishra, saysacademies and institutes are only able to keepto some extent. “There is still a huge gapbetween demand and supply. We still havepeople in India, who are not aware of thecareer options available with airlines. On theother hand, whatever pool of qualified stu-dents we have, they are not absorbed by air-lines because they are not experienced. Thiscriteria is limited in domestic airlines butinternational airlines just don't accept freshcandidates.” With a similar point of view JohnNaushad, MD, Flyair Aviation Academy, says,“It is true that many academies and instituteshave shut down and this has largely been dueto the recession and lack of proper manage-ment. But not much recruitment happenedlast year. Although academies had an 'n' num-ber of good candidates, they could not placethem as candidates. This is usually due to alack of contacts with the airlines companiesand not knowing where the interviews arehappening. This happened a lot in the NorthEast and Kolkata. Academies promisedairhostess training but were in fact trainingfor the hotel industry.”

Gurpreet Khanna - Director & CEO - IESP,Airawat Group, who began his venture withhis father, A S Khanna, Chairman, AirawatGroup and Ex-GM - Air India, has a wideroutlook, “Airlines and aviation companiesacross the globe, today, are making continu-ous efforts in seeking readily employable tal-ent or 'industry-ready' talent to meet theirstaffing requirements in the category of freshrecruits. Being the world's largest democracy,


TRAINING

“Over the lastfew years,

requirementsof thesevarious

airlines havepretty muchbeen met”

Samir ValiaPresident, FrankfinnAirhostess Training

Institute

HEALTHY INTERACTION:Students taking lessonsin a classroom ofFrankfinn AirhostessTraining Institute.


India, also, boasts of one of the largest popu-lations of young people. With its rapidlyincreasing workforce each day, about eight-nine million new entrants are being addedeach year. Presently, about 44 per cent ofIndia's labour force is illiterate with the quali-ty of most graduates being poor. Only a smallnumber of organisations offer adequateopportunities for upgrading of skills withonly 16 per cent of Indian manufactures pro-viding on-the-job training compared to amammoth 90 per cent and above in China.Organisations like the World Bank are cur-rently supporting improvement projects tohelp produce engineers at par with interna-tional standards. There is a clear need forskill-development measures in India toincrease employability. Most Indian organisa-tions, educational bodies/institutions, voca-tional training players are in nascent stages toproduce industry-ready talent and are ramp-ing up their efforts to meet the industry work-force demands. It is evident that most stu-dents in India are equipped with academiccertificates; however, they severely lack inemployable skill sets. This has led to increas-ing the gap between academic yield andindustry demands.”

AIRLINE VS STAND-ALONE So, does a student attending an airline-train-ing academy have an advantage over one whodoesn't? Bery claims so, “An airline-trainingacademy has much to offer to its students.Apart from just classroom sessions, we impartsimulation training in a mock training room,which is an essential part of the academy. Thistraining includes meal service procedures,

meal service delivery, business/economy classservice, announcements, safety demonstra-tions and the like, and it is delivered by indus-try experts with long years of experience inthe industry. Over and above, the job trainingis an integral ingredient of our curriculumwhere students get a hands-on experience onin-flight training services and airport manage-ment. A stand-alone academy on the otherhand, produces half-baked candidates whoare not completely equipped to join the workforce.”

Director/Co-Founder of Urasia AviationAcademy Arlene Marwah has a different view,“A stand-alone academy is an academy thatgives the student an introduction to aviationand it is more a familiarisation training thatprepares them for the ab-initio training withan airline-training academies. A stand-alonetraining academy gives students more confi-dence, preparing them for the aviation mod-ule both in service and in technical. Groomingthem gives the airline a fully groomed candi-date. This enables them to achieve bettergrades in the airline-training academy.”Khanna explains further, “Airline trainingacademies have a brand image mock-ups(simulators), to back up their credentials, air-line-specific perspective, practical drills ofemergency procedures, etc. and course con-tent pertaining to sops specific to that particu-lar airline only. Stand-alone academy offerspractical exposure through internship oppor-tunities, affiliations back up their credentials,perspective drills in theory only, conventionalteaching techniques that go beyond and expo-sures to the students to different global stan-dards. Also the price range of the airline acad-


“A stand-aloneacademy is anacademy that

gives the studentan introduction

to aviation and itis more a

familiarisationtraining that

prepares themfor the ab nitiotraining with anairline-training

academy”Arlene Marwah

Director/Co-founderof Urasia Aviation

Academy

INQUISITIVE MINDS:Aspiring cabin crew mem-bers in an interactive ses-sion organised by Fly AirAviation Academy.



emies are on a higher side depending on thebrand's value in the market.

From another point of view, Mishrabelieves there is lot of differences when com-paring an airline training academy and astand-alone academy. “Airline training acade-mies run tailor-made courses but academiessuch as ours, which are IATA authorised train-ing centre, provide training with internationalstandards, i.e. Harvard and Stanford — IATAAviation Management. These universities areconsidered under Top 20 businessschools/universities in the world.”

PLACEMENT PROBLEMS?Flying Cats and Global Retail School, whichoffers training modules designed by the presti-gious international body Active SolutionsConsulting Group (ASCG), a UK-based compa-ny that designs training modules for airlinesacross the globe, claims of having an annualplacement statistics of 100 per cent and offersboth a one-year diploma and a three-yeardegree programmes. Bery adds, “It is not diffi-cult to place the students, as the customer serv-ice sector is the fastest-growing sector as on

date. Supply exceeds demand. Selection of stu-dents in Flying Cats, Kolkata, is done at parwith international airlines selection criteria; sothe approach is extremely focused and indus-try oriented.” Like many academies that addednew dimensions to their training courses,Frankfinn looks at its success not only from theaviation angle but a part of the three areas oftraining it provides — aviation, hospitality andtravel. Valia explains, “If I talk about last year,because I have statistics from April 2010 toMarch 2011, students placed in these threeindustries were roughly about 5,000. The waythe spread usually goes is almost 85-90 per centof students get placed in all the three industries— aviation, hospitality and travel. The way thespread is roughly about 20-25 per cent wouldgo into the aviation sector, another 40 per centwould start their career in hospitality but asthey gain experience they would later on endup moving to airlines as well because airlineswould also look upon their candidature morefavourably once they have six months or a yearof experience in hospitality. There is a percep-tion that the aviation industry is not doinggood. I would tend to disagree. I say industry

“Airline trainingacademies havea brand image

mock-ups(simulators), to

back up theircredentials”

Gurpreet KhannaDirector & CEO -

IESP, Airawat Group

IN-DEPTH TRAINING:Glimpses of the sessionsfrom various trainingacademies.



has grown and will continue to do. The overallnumber of planes will growing and people willkeep flying in the skies. And as long as theplanes are up there in the sky, they are going toneed people. So, trained manpower is alwaysgoing to be in demand.”

Yet another institute to add a hospitalityangle to its training courses, Urasia AviationAcademy's co-owner, Marwah suggests it isnot difficult to place potential students whoare trained and can deliver the servicerequired with airlines, even though they havetheir own academies, a student that meetswith their requirements can work with anyairline. “We had 38 students from our acade-my who were placed within 60 days with bothinternational and domestic airlines.”International Travel & Tourism Academywhich also provides other trainings likeground staff training, cargo training, andinternational air ticketing claims to have 100per cent placement record for last 6 months.Adds Mishra, “We have students who havebeen placed with Air India, Air Mauritius,Malaysian Airlines, Air Traffic Control Centrein Johannesburg, Indigo, and even Air India inToronto.”

INTERNATIONAL VS DOMESTIC“The attraction is always there for an interna-tional airline. It is like anybody who wants todo engineering would probably want to do itfrom an IIT, like a person who is getting intoaviation would like to get into an internation-al airline,” explains Valia. Bery adds, “Yes,definitely there is a preference to work withinternational airlines because of the attractivepay packages, international exposure and adesire to see the world without paying for it.International airlines too, on their part, arenow raking the Indian market for candidatesas the manpower delivered is of international

standards. Emirates and Qatar Airlines areproof of this fact. At a recent campus place-ment at our academy, Saudi Arabian Airlinestook 61 candidates on board from one batch!”Although, Marwah agrees that an internation-al airline is always preferred, she also addsthat some prefer a domestic airline for person-al reasons as parents and guardians play animportant role in their decisions.

INTERNATIONAL STANDARDS? “Training in India is definitely not at interna-tional levels,” says Naushad. “How can webe? We have no academy that singularly con-centrates on the training of airhostesses, theyall train students for both airhostesses and thehospitality and customer service. So often stu-dents, end up in BPO jobs or as receptionists.Abroad there are different types of trainingfor airhostess and these types of training wedo not offer our students. Academies don'teven know which aircraft the airlines have, aBoeing aircraft or an Airbus or the ATR. Tosucceed in this industry, students must haveall the technical knowledge. But academiesjust provide a small part of the training beforesending students off for interviews. It is air-lines that recruit the candidates and then givethem the training according to their aircraft.”

When asked Valia is of a different view,“We are definitely at par with internationalstandards. Because even from an internationalairline point of view, what they are seeking issomebody who's got the personality and thewithal for the good customer relationship per-son. I would say somebody who is a naturaldoesn't even need an academy. They would be

“We havestudents who

have beenplaced with Air

India, AirMauritius,Malaysian

Airlines, AirTraffic Control

Centre inJohannesburg,

Indigo, and evenAir India in

Toronto”

Sanjiv Mishra Owner of International

Travel & TourismAcademy

TECH-SAVVY: Students tak-ing computer lessons in acomputer lab of FrankfinnAir Hostess Academy.

probably get hired directly by an airline. Whatwe at the institute are preparing them for isthat when they go for their interviews they areable to put their best foot forward. And yes,the training they go through with us givesthem an edge over the other candidates.”

WHERE ARE THE MEN?This is another interesting question. Arechanging times seeing more men entering thisprofession? Bery believes so. “Though it is apreconceived notion that an airhostess job isonly for women, awareness is gradually grow-ing and airlines like Jet Airways and GoAirhave a fair share of stewards on board.”Though Valia agrees to this shift he thinks its aslow process. “That's the way the industry hasbeen. Earlier, I would say the ration was 90:10.But there has been a shift and today it's morelike 65:35. More men are willing to choose thisprofession. And even airlines are will to recruitthem as flight stewards.” As Mishra says theword “airhostess” conjures up an image of awell-mannered, elegantly dressed lady greet-ing passengers. It's a fact that demonstratesthat the field is still dominated by women. Butthere is place for men too.

FORMULA FOR SUCCESS“Success in an airhostess career dependslargely on various parameters that includephysical, personality and emotional quan-tums,” Bery points out. “Having an attractivepersona, a well-groomed outlook, good cus-tomer service skills and a high-emotionalintelligence will definitely go a long way.”Marwah adds, “Besides looks, communication

plays a major factor, while empathy, diploma-cy and discipline makes them successfulairhostess.”

As Mishra explains further, all airhost-esses need to be mentally and physically fit todeal with the long working hours and emer-gencies. “Hard work and patience are the veryimportant. Readiness to work at odd hours ofthe day, on weekends and holidays is anothermust for aspiring airhostesses. Typically, anyone who wants to pursue this job needs only ahigh school certificate and good communica-tion skills. Some airlines do, however, preferapplicants who have completed certifiedairhostess-training programmes. And thosewho aspire to work with international airlinesmust also learn to speak a foreign language.”Of 100 students, only 2 per cent get a job andof these many resign within a week of doingthe job. Naushad says, “This might look like aglamorous job, but it requires a lot of tediouswork. So passion towards the industry is thenumber one thing. If there's no passion, youcan't survive. At some point of time, you willfeel like this job is boring or just given upbecause it's just too difficult. The other thingsto have is confidence and being proactive. Thesustenance to service needs to be there. It'scan't just be about the money, but also aboutprovide good service to passengers andunderstanding them.”

So, just looking good does not guaranteesuccess. “I wouldn't say that airlines are onlylooking for beautiful people. It's not aboutbeing faired skinned all the time. Even if youare dark skinned but have a good clear com-plexion in terms of no scars or acne of any sort,airlines would still look at you favourably,”says Valia. “But the number one thing airlineslook for is a good personality and having apleasant demeanour. Guests want to see apleasing personality with a smiling counte-nance when they board the fight — is what it isall about. And to top it all, one needs goodcommunication skills. When I say communica-tion, the requirement is usually English andHindi in India, and at times even a local lan-guage. For example, currently Emirates withwhom we have a tie-up for recruitment and isflying into India, has a requirement for Bengali-speaking crew. So it has coming regularly forthe last few months to our centres in WestBengal and recruiting Bengali-speaking crew.”

Will having institutes like Frankfinn spreadacross the country help generate enough man-power for the ever-growing industry? Are therestudents who still want to take up this professiondespite all the hurdles? It's great to aspire for aglamorous life, jet setting to exotic destinations,but harsh realities show that a very few actuallyreach those heights. And one wonders if theindustry can help create stead enough platformsto train and nurture a new generation of flightattendants.


“Though it is apreconceivednotion that an

airhostess job isonly for women,

awareness isgradually

growing andairlines like JetAirways and GoAir have a fair

share ofstewards on

board”

Anshu BeryCOO, Flying Cats andGlobal Retail School

TRAINING

CLEAR VIEWS: Groupdiscussion session inprogress.

At this moment, the world over hun-dreds of thousand aircraft are eithertaking off, landing or in mid-air. Ineach of these activities, dangers lurk.However, while landings and take-

offs are considered more prone to accidents, thefire services at airports can respond immediate-ly through aircraft rescue and fire-fighting(ARFF) teams. The ARFF team is a special cate-gory of fire fighting and tasks entail quickresponse, hazard mitigation, evacuation and ifrequired rescue passengers and crew of an air-craft in an airport ground emergency.

It is imperative that due to mass casualtypotential of an aviation emergency, the speedwith which emergency response equipmentand personnel arrive at the scene is of para-mount importance. National governments,which are signatories to the International CivilAviation Organisation (ICAO), have to abide bythe guidelines set out.

In India, ARFF service is available at 64 air-ports and personnel are trained at two centreslocated in Kolkata and New Delhi respectivelyunder the administrative control of AirportsAuthority of India (AAI). AAI is mandated toorganise, equip, train and operate in such amanner as to fulfil its principal objective ofARFF. It has standardised activities in confor-mation to ICAO guidelines. The activities ofARFF service at airports entail:

Fire prevention and protection.Fire investigation and analysis.Safety coverage to flight operation as per ICAO.Safety coverage to the airport infrastructure.Mutual aid fire fighting with other fire safety assistance services.Training to fire crew and other agencies at airports.Ambulance services to the passengers.The two training centres have built consid-

erable reputation to be included in the list ofAviation Training Directory of IACO and USFederal Aviation Administration (FAA)Advisory Council. There is no dearth of inter-national trainees being trained in our trainingcentres mentions Subash Kumar, GeneralManager (FS), AAI. Kumar adds, “This confi-dence amongst Asian and African nations isindicative of our high standards and quality oftraining. Visit our training centre to get firstimpression.”

A visit to Delhi's Fire Training Centre (FTC)is an exhilarating experience and at the end ofthe day one comes back with a feeling that“FTC means business”. The morning sessionstarts with physical training and drill.“Physical fitness is of utmost importance tofiremen and drill is for discipline. Both of theseare of primary importance,” explained a seniorofficer.

Later, a full-fledged mock drill was on show— an aircraft is on fire, crash fire tenders arrive,spew enormous amount of water and foam, asfire subsides rescue crew in protective gear andbreathing equipment rescue passengers. “Thisis what happens in reality and we monitorresponse time of every team involved in thisoperation,” said Mohd Hanif, Deputy GeneralManager, in charge of FTC.

At airports, a quick response is all that mat-ters. After that comes securing the aircraftagainst all hazards, particularly fire, that increas-es survivability of passengers and crew onboard. Again, a fast response means fire fightershave to instinctively use water, foam, dry chem-icals and cleaning agents rather than wait for a senior officer's instructions to extinguish



DAREDEVILRY AT ITSBEST:Firefighters using awater cannon to dousethe fire during a drill.

THE AIRPORTS AUTHORITY OF INDIA’S FIRE-FIGHTING SCHOOL IN THE COUNTRY IS RECOG-NISED FOR ITS SUPERIOR TRAINING, AS NANDU MANJESHWAR NOTICED, WHEN HE VISITEDTHE SCHOOL NEAR DELHI AIRPORT.

TRAINING FIGHTERS TO FIGHT FIRE

NAND

U MA

NJES

HWAR


burning aviation fuel in and around to maintaina path for evacuating passengers to exit the firehazard area.

There is misconception that a fire fighter'sjob is only to deal with fire. “It is different at theairports, but a fire fighter has to deal with manydisasters which people do not realise. Thesemen are the first one to react to disasters such asa building or a bridge collapse, a tsunami as ithappened a few years ago in the South andearthquakes. And we train to deal such inci-dents,” mentioned Hanif.

At the FTC, personnel handle the latestmachinery and equipment, which are used inactual relief operations. Similarly, fire crash ten-ders are the latest in use around the world suchas Rosenbauer, and the personnel are trained onthis. The instructions imparted are not merely

on the drill ground, but in the classrooms as wellwhere cut-out models of all types are kept andtrainees are explained the rescue operations foreach aircraft. In the laboratory, they are taughtas to how chemical agents react with aviationfuel.

“In the last fiscal year, we trained almost1,500 people combined in both training cen-tres, in all 23 courses. The courses range frombasic training course to firemanship courseand fire safety management for senior execu-tives. The bulk of trainees are for basic trainingand firemanship courses,” mentioned SubashKumar. Another unique feature is that residen-tial accommodation, classrooms, dining hall,library and laboratory are air-conditioned.“This is not luxury. The trainees go through arigorous schedule everyday and they need torelax to be fit for the next day's schedule,” saidHanif.

Apart from AAI and private airport per-sonnel, FTC trains personnel from shippingcompanies, Oil India Limited, Jindal Steel andPower Limited, Reliance Industries Limited,Indian Navy and Indian Air Force. “Recently, ahigh powered delegation from Indian AirForce had come to assess our training,” men-tioned Hanif.

AAI has set its sights high. Its aim is “to bea world-class organisation providing leader-ship in air traffic services and airport manage-ment and making a major hub in Asia-Pacificregion by 2016”.

The way AAI's fire service is progressingone need not wait till 2016: the aim will beachieved much earlier.


Is this fire training centre meant for per-sonnel employed at airports or do you trainpersonnel from other fire services also?Though bulk of trainees is from airports,there are no restrictions for training fire serv-ices personnel from other states as well aspublic sector and private companies. Butthere is a minimum qualification requirementfor enrolment.

How is the status of fire services atIndian airports?Our airports have the latest equipment andare as good as any in the world. Training isconducted on similar machines and equip-ment so that after training when they areon an actual task, the personnel are notfound wanting. India is a signatory to theICAO guidelines and we have to adhere tothe laid-out standards.

Do you offer consultancy service?We offer consultancy when asked, but we

do not have separate consultancy servicesdepartment. When AAI is called for con-sultancy, especially foreign government,fire services becomes part of that service.

Is there any quota system for those out-side your department?Each year a calendar is prepared for train-ing people. We primarily have to fill theneed of our requirement and the balance isoffered to outsiders. We also get personnelfrom neighbouring countries as well asfrom African countries. Last year, wetrained about 70 people from Asian andAfrican countries.

With your experience, what are theusual cause(s) of an accident?There is no text-book case for any accident.Irrespective of the causes, the fire services atthe airports are operational 24x7.Immediate reaction to a situation is the cruxof efficiency.

“Immediate reaction to a situation is efficiency”

ALERT MINDS: Officialsattending theory classesto understand the basics

NAND

U MA

NJES

HWAR

MOHD. HANIF DY GENERAL MANAGER,FIRE TRAINING SERVICE,

NEW DELHI, ON THETRAINING AND

PREPARATION OF FIRE FIGHTERS.

SPECIAL

A SIGHT TO WATCH: Amritsar Airport presentsa dazzling look at night.

As part of its continuing effortsto improve the air navigationfacilities for the aircraft andpassengers at all the airportsin the country, the Airports

Authority of India (AAI) has recentlytaken up the initiative of upgrading theexisting instrument landing system toCategory-II at Amritsar for supportingsafe and smooth aircraft operations.The upgradation of the system toCategory-II required improvement inairport infrastructure, removal of obsta-cles in and around the airport, trainingfor the Controllers and theMaintenance Personnel. Having com-

pleted all the requirements and onobtaining the regulatory approval, theILS CAT-II has been operationalisedfrom on December 23, 2011 at ShriGuru Ram Das Jee InternationalAirport, Amritsar.

The advanced landing systemwould reduce the visibility require-ment for an aircraft for landing atAmritsar Airport from the existing650 metres to 350 metres.

The implementation of ILS CAT-IIsystem will be a big boon for the pas-sengers of this pilgrim city particularlyduring winter when the visibility goesdown well below 650 metres. The

aircraft would be able to land safelyeven during poor visibility (up to 350metres) at Amritsar reducing thechances for diversion of the aircraft toother airports in such cases. Aircraftwould be able to take-off fromAmritsar even when the visibility is aslow as 400 metres.

The implementation of ILS Cat-IIwould benefit the airlines in terms ofincreased safety, avoiding diversions,minimising holding for visibilityimprovement with consequent gainsin operating costs and lesser fuel burnand substantial environmental effi-ciency.

AMRITSAR AIRPORT USHERS IN CAT-II INSTRUMENT-LANDING SYSTEM

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2SPECIAL


Airports Authority of Indiakeeps on providing new facili-ties for the passengers and air-

lines as a regular exercise at its var-ious airports. In this respect, manynew passenger facilities have beenintroduced at Jai Prakash NarayanInternational Airport, Patna, for thecomfort of passengers such as newcyber café, shoe shiners machine,additional visitor chairs, moneyexchange counter, mini- snack andpharmacy counter outlets.

For the safety and security ofpassengers which is the primeresponsibility of AAI, following ini-

tiatives have been taken: (1)Provision of new fire and rescuevehicles (2) Perimeter lighting (3)Runway re-carpeting (4) Provisionof new ambulances (5) Increase inthe height of boundary wall in oper-ational area (6) Additional ramp forparking of airline equipment.

In addition, CCTV have beeninstalled and barrack accommoda-tion has been provided for CISFPersonnel. Also new furniture hasbeen placed in the reserved loungeand a new look has been given bybeautifying the city side of PatnaAirport.

LUXURY REDEFINED: New furniture has been placed in the reserved lounge area atPatna Airport.

SERVICE AT ITS BEST: A "Swagat Seva Facility" (paid-porter service) started atChandigarh Airport for passengers.

AAI

AAI

In order to meet the expectationsof travellers, Chandigarh Airport,Civil Enclave, has introduced

Swagat Seva facility (a paid- porterservice) for passengers, new snackbar counters in domestic as well asin international security hold area atthe airport for air passengers.

In addition, a new restaurant,eat… at Chandigarh, has been estab-lished in new integrated terminalbuilding. For the medical needs ofpassengers, a Medical Inspection(MI) room has been setup in associ-ation with Fortis Healthcare.

News channel facility has alsobeen introduced for passengers tran-siting from international securityhold area, immigration waiting halland domestic security hold area.

Chandigarh Airport has recentlybeen declared a customs airport andinternational flight operation fromChandigarh airport are likely tostart soon.

AMOU was signed for developmentof Deoghar Airport between Govtof Jharkhand and Airports

Authority of India in the presence ofChief Minister of Jharkhand, ArjunMunda. Sibu Soren was also present inthis MOU signing function which wasattended by other senior officers ofJharkhand Government and AAI. TheMOU included development of the air-portinitially for ATR-72 type aircraftoperations and subsequently for A-321type of aircraft operations dependingupon the demand and traffic potential.

CHANDIGARH AIRPORT INTRODUCES SWAGAT SEVA

NEW PASSENGER FACILITIES AT PATNA AIRPORT

AAI SIGNS MOU TODEVELOP DEOGHARAIRPORT

SPREADING WINGS: V P Agrawal, Chairman AAI(left), signing the MOU. Also seen in the pictureis Arjun Munda, Chief Minister, Jharkhand (3rdfrom left).

AAI

Article 15 of Convention on InternationalCivil Aviation requires that all aero-dromes open to public use under the

jurisdiction of a contracting state should pro-vide uniform conditions for the aircraft of all

other contracting states.Articles 28 and 37oblige each state to pro-vide its territory, air-craft and other air navi-gation facilities/servic-es in accordance with

Standard and Recommended Practices(SARPs) developed by ICAO (InternationalCivil Aviation Organisation), Volume-1Annex-14.

Accordingly in compliance with the aboveinternational regulations and in conformitywith regulations set out in Part XI of AircraftRules 1937 (Rule 78) and conditions men-tioned in various Civil AviationRequirements (CARs) issued by DGCA, theAirports Authority of India (AAI), being amajor aerodrome operator envisaged on apath to acquire aerodrome licence not onlyfor international airports but also for domes-tic airports where schedule air transport serv-ices are operating. AAI has acquired aero-drome licence for 54 of its airports.


SPECIAL

AAI LEADS IN AERO-DROME LICENSING

AAI

Pune city is the ori-gin and hub of var-ious movements

such as social, religious,educational, political,economic, agricultural,cultural and literary. Inshort, it is a gateway toMaharashtra. The air-port reflects the impor-tance of the city.

The fascia of theTerminal Building is ofpartial glass panesmeasuring approxi-mately 16.5 feet inheight and is fully air-conditioned.The city side of terminal is providedwith beautiful landscaping. We alsohave live plants inside the terminalwhich enhance the aesthetics of theterminal. With the construction of

the new Departure and Arrival ter-minal with Ground + 1 level measur-ing 13.46 feet in height, an open lookhas been achieved. What is moreimportant is that it can accommodatemore passengers. This avoids queu-

ing-up in front of thecheck-in counters andhelps in expeditioussecurity clearance.Spacious check-in andsecurity hold areasand facilities likerestaurants, book stall,spa services and vari-ous shops make apleasant experience totravel through. Thespacious departureand arrival areas easethe congestion on thecity side. In addition,

there are two aerobridges for com-fort and convenience of passengers.Apart from developing the airport asa whole, it is our constant endeavourto have a passenger-friendly envi-ronment.

PUNE: THE GATEWAY TO MAHARASHTRA

NEW DIRECTION: Flyers at the check-in counters at Pune Airport.

AAI

T o provide spacious termi-nal space and more facili-ties to the domestic pas-

sengers at TrivandrumAirport, the flight operationsfor domestic flights wereshifted from the existingdomestic building to the oldrefurbished international ter-minal building in early

December, 2011. The salient features of the

building are: Total floor area6241 sq metres; Number ofaerobridges: 2; Number ofcheck-in counters with feederconveyors and in-built weigh-ing scales: 17; Arrival convey-ors: 2; and Car park capacity:300.

NEW LOOK: Lounge area at the newly-refurbished terminal.

TRIVANDRUM’S OLD TERMINAL GETS A MAKEOVER

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2SPECIAL


As part of ongoing corporatesocial responsibility, Atul Dixit,Airport Director, Lucknow

Airport, organised a free healthcheck-up camp at ChaudharyCharan Singh Airport, Lucknow,recently. The free camp was organ-ised under the supervision of Dr O PChaudhary Hospital and ResearchCentre, Lucknow and its dedicatedteam of doctors.

At the inauguration of the healthcamp, the Airport Director highlight-ed the importance of corporate socialresponsibility of Airports Authorityof India and also narrated the activi-ties undertaken in this regard. In thecamp, the fire personnel and officerswere made aware about the precau-tions to be taken for disease relatedto heart, kidney, diabetes and BP sothat they can keep themselves fit and

perform their duties with full energy,dedication and zeal for saving thelives of others.

The two-day camp was alsoattended by various employees ofAirports Authority of India and resi-dents of nearby villages and theywere sensitised about the impor-tance of good health, particularly theperiodic check-up. The gatheringwas provided advice by doctorsthrough slideshows for the easyunderstanding of the participants.

At the end of the camp, theAirport Director expressed his com-mitment towards corporate socialresponsibilities and functions of theAAI. All the persons who benefitedfrom the camp thanked the hospitaland AAI for holding such pro-grammes.

FREE HEALTHCHECK-UPCAMP ATLUCKNOWAIRPORT

HEALTH CONCERNS: An employee undergoing BP check-up at Lucknow Airport.

AAI

Athree-day Wushu Championshipwas organised by Delhi AmateurWushu Association at Talkatora

Indoor Stadium, New Delhi. The inau-guration ceremony for the event waspresided over by VP Agrawal,Chairman, Airports Authority of Indiaand President, All India Public SectorSports Control Board.

The championshipinvolved more than500 players in senior,junior and sub-juniorcategories and partici-pation by 20 teams inthe championship.Many internationalplayers also displayedtheir skills in thechampionship amongwho were AsianGames medalistBimoljit Singh, WorldJunior Silver medalwinner Gulshal andlast year’s best playerSajan Lama.

Desh Deepak Verma, IAS, DirectorGeneral, Sports Authority of India,while declaring the games open,appreciated the initiatives taken by VPAgrawal, particularly to promote neg-lected sports and bring them in thepublic domain with the support fromthe public sector. He also mentionedthat the country needed dynamic lead-

ers both in the corporate world and thesports arena to keep sports activitieson the frontline.

Speaking on the occasion, V PAgrawal mentioned that he belongedto the school which not only sub-scribed but also encouraged participa-tion in sports, especially in the adoles-cent ages for it not only inculcated asense of discipline and camaraderie,which in turn contributed to a greatextent the development of good char-acter amongst children, it also helpedone become a good citizen.

He further highlighted the popu-larity of this event and opined that theAll India Public Sector Sports ControlBoard (AIPSSCB) took the initiativeand promoted the event in the publicsector undertakings too. He also addedthat in his capacity as President,AIPSSCB, he would welcome propos-als for promotion of such sports fromPSUs. He also mentioned that childrenshould visit the AAI website, whichprovided full details about sports pro-motion activities supported by AAI.

SPEAKING FOR THE CAUSE: AAI Chairman VP Agrawal address-ing the audience during the inauguration of the three-day WushuChampionship.

AAI

AAI’S PUSH FOR WUSHU

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2CARGO

CAUTION IS THE WATCHWORD


THE ECONOMY AROUND THE WORLD IS STILL REVIVING FROM THE MAULING IN 2011 —EVER SO SLOWLY — AND THE GREEN SHOOTS OF GROWTH CAN BE SEEN. ACCORDING TOTHE ECONOMIC SURVEY, EXPORTS CONTINUED TO RISE AND THE CURRENT INDICATIONSARE THAT INDIA WOULD ALSO ACHIEVE THE TARGET OF $200 BILLION (2010-11).TIRTHANKAR GHOSH TALKED TO A FEW AIR CARGO STALWARTS TO FIND OUT HOW THEYEAR IS GOING TO PLAY OUT.

T here is a bad news and a good news forthe cargo sector. The International AirTransport Association (IATA) pointedout that cargo markets contracted by0.7 per cent for the year; but there was

a positive demand growth in December of 0.2per cent. This was quite unlike the passengersector where demand rose by 5.9 per cent com-pared to 2010, in line with long-term growthtrends. The growth in demand lagged capacityincreases at 4.1 per cent for cargo puttingdownward pressure on load factors. The aver-age freight load factor was just 45.9 per cent,down from 48.1 per cent in 2010.

Commenting on the low loads —both inpassenger and in cargo, Tony Tyler, IATA’sDirector General and CEO said: “Given the

weak conditions in Western economies the pas-senger market held up well in 2011. But overall2011 was a year of contrasts. Healthy passengergrowth, primarily in the first half of the year,was offset by a declining cargo market.Optimism in China contrasted with gloom inEurope. Ironically, the weak Euro supportedbusiness travel demand. But Europe’s primari-ly tax and restrict approach to aviation policyleft the continent’s carriers with the weakestprofitability among the industry’s majorregions. Cautious improving business confi-dence is good news. But 2012 is still going to bea tough year.”

Air freight markets turned up at the end ofthe year after shrinking through much of thesummer and autumn as business confidence


THINK LOCAL, ACTGLOBAL: A CathayPacific freighter at oneof the Indian airports.

CARGO

The growth indemand lagged

capacityincreases at 4.1

per cent forcargo putting

downwardpressure on load

factors

CATHAYPACIFIC


across major economies, and export orders,slumped. Surveys have shown that businessconfidence — a leading indicator for changesin cargo markets — in December 2011, suggest-ing that industrial production and internation-al trade may be stabilising. Although interna-tional freight markets contracted 0.6 per centfor the full year and 0.8 per cent in December,compared to a year ago, December internation-al demand was 1.5 per cent ahead of the levelin November, while domestic demand was up3.2 per cent compared to November and 5.5 percent compared to December 2010. Freight mar-kets, according to the IATA, have shownsequential month-over-month growth inNovember and December 2011, adding evi-dence to the view that international trade maybe stabilising. However, the situation for air-lines in these markets has deteriorated signifi-cantly. Freight load factors declined consider-ably to 45.9 per cent in 2011, as measures tomatch capacity with demand by reducing thefreighter fleet have been offset by introductionof new twin-aisle passenger aircraft.

Tyler said that improving business confi-dence and encouraging news from the USeconomy were heartening developments. “Butit is far too early to start predicting a soft land-ing for 2012,” he said. He said that the eurozone crisis was far from over and the failure toachieve a durable solution would have direconsequences for economies around the world.That would “most certainly tip the airlineindustry into the red”, said Tyler.

The IATA chief also said that airlines hadmade investments in new fuel-efficient, envi-ronmentally-friendly aircraft. The main chal-lenge was to deploy them profitably into adynamic and uncertain market. At the sametime, governments have to take a strategicview of the airline industry that recognises itsvalue as a catalyst for economic growth. “Overa third of the value of goods that are tradedinternationally is transported by air. Gettingpeople and goods to their destinations moreefficiently improves competitiveness.Infrastructure investments to enable aircraft toland and take off with a minimum of delay andfly the most fuel and carbon-efficient trajecto-ries will return a far greater payout to globalGDP than shortsighted and narrowly-focussedtax grabs. Let’s hope that 2012 will be the yearwhen politicians put the required political cap-ital behind important projects such as theSingle European Sky and NextGen in the US,”said Tyler.

The IATA, therefore, has made it amplyclear that the short-term outlook for the aircargo industry is bleak. In fact, in 2012, IATAhas downgraded its forecast for airline profitsfrom $4.9 billion to $3.5 billion for a net marginof 0.6 per cent. This was almost contrary toBoeing’s forecast. Jim Edgar, Boeing’s RegionalDirector of Cargo Marketing, pointed out thatworld air cargo traffic would triple over thenext 20 years and cargo rates should mirrorthat demand. Edgar was quoted as saying thattill 2029, Boeing expected world air cargo traf-fic to grow at an annual rate of 5.9 per cent withAsia continuing to be at the forefront of the aircargo industry. The routes associated with Asiawould continue to experience the world’s high-est growth rates over the next 20 years, at 6.8per cent.

Putting that beside Tony Tyler’s words, thepicture is confused. “The biggest risk facingairline profitability over the next year is theeconomic turmoil that would result from a fail-ure of governments to resolve the Eurozonesovereign debt crisis. Such an outcome couldlead to losses of over $8 billion-the largest sincethe 2008 financial crisis,” according to Tyler.

In India, the dim prospects were echoed byair cargo carriers. Bharat J Thakkar, President,Air Cargo Agents Association of India pointed


The IATA hasmade it amplyclear that the

short-termoutlook for the

air cargoindustry is bleak

“World air cargo traffic would triple over the next 20years and cargo rates should mirror that demand.”

Jim Edgar, Regional Director of Cargo Marketing, Boeing

out that 2011 had been an eventful year. “Thefreight forwarding community weathered thestorm of recession in 2009 and 2010 and recov-ered — to an extent — in the first quarter of2011,” he said. However, the good times didnot last. Thakkar said, “Before we couldbreathe easy, the industry was pushed to theback foot. All through the year, our customershave had to encounter increases in transactioncosts over the rise in the price of air turbinefuel, resulting in increase of Fuel Surchargeadding to the forwarder’s burden to make endsmeet. There is very little being done about it.”

Thakkar squarely blamed the infrastructurefor the air cargo industry not doing as well as itshould. He said, “ATF prices apart, the indus-try has had to bear up with the infrastructure— or rather the lack of it — available at almostall international airports around the country.”He went on to point out that the airport opera-tors had done little to salvage the situation.“Whatever airport operators might say andpromise, improvements through 2011 of theinfrastructure have been slow. In Mumbai, forexample, ACAAI in tandem with the BombayCustom House Agents’ Association (BCHAA),the Federation of Freight Forwarders’Associations in India (FFFAI), the Associationof Multimodal Transport Operators of India(AMTOI), the Western India ShippersAssociation (WISA), the Federation of IndianExport Organisations (FEIO), theConfederation of Indian Industry (CII), theAssociated Chambers of Commerce andIndustry of India (ASSOCHAM) amongst oth-ers, has been very vocal with MIAL (MumbaiInternational Airport Limited), to place

improvements before the peak season of 2012for exports which is currently on the decline.”Imports too would need topmost priority, saidThakkar, as its rapid annual growth of 20 percent-plus will increase further. The ACAAIPresident also said that the association waseager to discuss the proposed Master Plan thathad been put forward by MIAL at a recent aircargo seminar in New Delhi. ACAAI wouldlike to see exports and imports on a fast trackand dwell time going down.

As for the air cargo industry, other than thefirst quarter of 2011, “it has been an uphill taskdespite the fact that the country’s achievementshave propelled it to the front rows of globalpower,” said Thakkar. This, despite the factthat “some of us did well - what with Indiabeing one of the few countries that overcamethe slowdown with 12 per cent increase inbusiness traffic in 2010-11. Today, with thedeteriorating economic situation in Europe andthe USA, the spectre of a fresh downturn isonce again staring us in the face. In fact, wehave started feeling the impact. Added to thehigh price of aviation fuel, there is the fallingvalue of the rupee and export uncertainties.This,” said Thakkar, “requires more attentionalong with fast-track improvement at all air-ports to meet the growing demand forimports.”

Thakkar’s views were echoed by Jay Shelat,Vice President, Cargo, Jet Airways. He said,“2012 would be more difficult than 2011.” Hehad his reasons: “I say this keeping three fac-tors in mind — fuel costs, the Eurozone crisisand the employment/manufacturing situationaround the world.” Pointing out that fuel


TOWARDS GROWTH:Cargo terminal atHyderabad airport.

CARGO

In India, the dimprospects wereechoed by air

cargo carriers.Bharat J Thakkar,

President, AirCargo AgentsAssociation ofIndia, pointedout that 2011had been aneventful year

GHIAL


prices would play an important role in the riseor fall of the air cargo industry, Shelat said,“No one knows which way or how far up thefuel prices will rise through the year. If it does,air cargo will be the most affected. Fuel prices,”he emphasised, “are unlikely to settle. Theevents in the Middle East continue to havetheir effect on oil markets resulting in sup-ply/demand imbalance which in turn will con-tinue to unsettle the industry.”

Coming to the Eurozone crisis, Shelat saidthat the air cargo industry had “been feelingthe effects for quite some time now. Exports toEurope have been difficult through 2011 and2012 will be even tougher.” He pointed outIATA data, according to which the Eurozonecrisis had caused severe risk on the 2012 out-look. “If the Eurozone crisis turns into a globalrecession,” said Shelat, “the aviation industryaround the world could suffer losses exceeding$8-10 billion in 2012. The ripple effect is beingfelt - and will be felt - throughout the manufac-turing industries… 2012 is election year in theUSA and that may have an impact on improve-ments in the manufacturing and employmentfigures in the second half of 2012.” As for theintra Asia-Pacific region and the Indian domes-tic market, suffice it to say that it is these tworegions that have helped keep some positivetrends, according to the Jet cargo chief. “While2011 was a difficult year — in comparison to2010 — the figures were steady for the firstthree quarters of 2011. In the last quarter of the2011, we felt the impact of the high fuel prices,etc. and the ripple effects would continue in2012 making the year even more difficult than2011.”

Asian carrier Cathay Pacific is, however,bullish about 2012 and freight from India. Keento develop its Hong Kong hub, Cathaylaunched services to Bengalaru in India a fewmonths ago. In addition, the carrier alsolaunched a new market in Europe with its newscheduled freighter service to Zaragoza, Spainin the middle of November last year. The newfreighter destination will be operated as anextension of one of the airline’s existingfreighter services flying from Hong Kong to

Delhi, then onward to Amsterdam andZaragoza, returning to Hong Kong via Dubai.With this new service, Cathay Pacific becamethe first and only airline operating a freighterservice linking India and Spain, bringing tofive the number of European destinations thatshippers in India can choose from, includingAmsterdam, Frankfurt, London and Paris.

As the biggest freighter operator in India,Cathay is optimistic that conditions willimprove. Said Ashish Kapoor, RegionalManager Cargo - South Asia, Middle East andAfrica, “From the Indian perspective, 2011 hasbeen a very exciting year as we launched bi-weekly freighters from Chennai to Frankfurt,Bengaluru to Hong Kong and a new destina-tion, Zaragoza in Spain. We will continue tolook at potential new markets in the comingyear.”

“Sitting on the Mainland’s doorstep, we feelbullish about the future of cargo in this regionand the role our airline will play. We are invest-ing to be able to take on this market and it’sexciting to see these investments now becom-ing a reality,” said Kapoor. With cargo account-ing for one third of the airline’s total revenue,Kapoor said that, “Projections for the next twodecades say that world air cargo traffic willexpand at around 6 per cent annually, andmuch of this growth will be focussed in Asia—and China in particular.”

However, he agreed that while an“extremely strong 2010 for cargo was alwaysgoing to be difficult to beat, a downturn in thetwo key markets of Hong Kong and MainlandChina turned 2011 into a challenging year.” Asfor 2012, Kapoor mentioned that the outlookwas marginal towards the beginning of theyear. “There is no sign of cargo uptake for thefirst few months. However, as cargo is volatile,the later part of the year may see better timesand a gradual upturn. If the market runs downits inventory and the demand comes back it hasto be built up again. So while we may be in fora bumpy ride in the coming months, we shouldkeep a positive mindset and keep a clear focuson the many good things that are happening.”

The good news is that, according to the


Asian carrierCathay Pacific is

bullish about2012 and freightfrom India. Keen

to develop itsHong Kong hub,Cathay launched

services toBengalaru inIndia a fewmonths ago

“The freight forwarding community weathered thestorm of recession in 2009 and 2010 and recovered —to an extent— in the first quarter of 2011.”Bharat J Thakkar, President, ACAAI

“There are several initiatives such as e-Freight andCargo 2000, which do bring in some aspects of innova-tion into the air freight industry.”Sankalp Saxena, President and Head - Aviation Operations & Cargo Lines of Business, IBSIB

SPLC

.COM

HEAVY TRAFFIC: Loaded vehicles in a massive traffic jam near the cargo centre in Mumbai airport.


Economic Survey tabled in the Lok Sabharecently by Finance Minister PranabMukherjee, India’s cumulative export growthin April-December 2010-11 stood at 29.5 percent with cumulative exports reaching $ 164.7billion during the period. The exports contin-ued to rise with exports rising at the rate of 13.6per cent in 2008-09. The current indicationswere that India would not only achieve the tar-get of $ 200 billion but surpass it in 2010-11.

The survey observed that the direction ofIndia’s trade with USA, which was in first posi-tion in 2007-08, had been relegated to thirdposition in 2008-09, with the UAE becomingIndia’s largest trading partner, followed byChina. This position continued in 2009-10 andthe first half of 2010-11. In 2009-10 and 2010-11(April-September), India’s exports to the UAEwere higher than imports, while exports toChina were lower than imports. Export-importratios showed that among its top 15 tradingpartners, India had bilateral trade surplus withfive countries, namely the UAE, USA,Singapore, the UK, and Hong Kong in 2009-10and the first half of 2010-11.

With these kind of figures, FedEx is opti-mistic about India. Said Kenneth F Koval, VicePresident, Operations, India of FedEx ExpressEurope, Middle East, Indian Subcontinent andAfrica (EMEA), “We expect overall economicgrowth to continue at a moderate pace. India,”he emphasised, “has been enjoying sustainedeconomic growth in the recent past. However,now on account of the global economic situa-

tion and domestic factors like impact of tightmonetary policy, the revised growth projectionfor the Indian economy has come down to 7.5per cent for this fiscal year.”

According to Koval, FedEx continued to beextremely confident in India for many reasons.To begin with the country’s freight industry isexpected to grow at 10 per cent per annum by2014 with the air freight sector set to expand by8.5 per cent per year for the next five years.FedEx anticipates a lot of opportunities in sev-eral key industry sectors to propel the growthof the express logistics industry in India. E-commerce, pharmaceuticals and healthcare aswell as gems and jewellery are some of the sec-tors that we believe will offer several growthopportunities for the express industry, saidKoval.

Koval elaborated that phama was growingat a pretty healthy pace in the country and con-tributed to about 8 per cent of the total outputof pharma products in the world. With Indianpharmaceutical exports poised to grow at 30-35per cent in 2011-2012, the industry was devel-oping and growing rapidly. “We see it growingto being in the top 10 in terms of foreign salesin the next couple of years. The sector’s needfor specialised services such as packaging solu-tions and temperature-controlled ground andair-transport facilities will offer the expressindustry tremendous opportunities in the com-ing year,” he said. Along with pharma, the e-commerce industry has also resulted in asteady growth in contribution of the sector to


The good news isthat, accordingto the EconomicSurvey tabled inthe Lok Sabha

recently byFinance Minister

PranabMukherjee,

India’scumulative

export growth inApril-December2010-11 stood

at 29.5 per cent

“I believe that the contraction of air freight volumes thisyear is a sign of turbulence ahead for both local andglobal economies.”Jay Shelat, Vice President, Cargo, Jet AirwaysAI

RCAR

GONE

WS.

COM

FedEx’s business. “We believe that we will alsosee additional growth for this specific sectorcoming from Tier-2 and Tier-3 cities in Indiawhich will over a period of time come to anequal balance of growth between metros andTier-2 and 3 cities,” he said.

With all these opportunities coming up,would the air cargo industry get back to theboom of 2010? Shesh Kulkarni, President andCEO of Bengaluru-based freight forwardingstartup, UFM, who has been hoping for goodtimes, does not think so. “I have for last fewmonths prayed that the world economy hits itsbottom fast for once it get there, the only wayfor it to move is up… but my fear always iswhen it hangs mid-air. The early part of 2012will continue to experience the mid-air sce-nario…it does not look good and does not lookbad either,” said Kulkarni. It will be this expe-rience that trade and business will have to getused to for a long time to come, as this doesseem to be the trend for many quarters tocome. “One will have to be incredibly alignedto stay on top: 2012 is the year to keep costs incheck, revenue will only look meaningful tothose who can keep costs in check,” advisedKulkarni.

Jet’s Shelat put it simply when he said that2012 would be a year when “we will have tomove with caution”. Taking lessons from thepast, he pointed out that, “Global figures showa 4.6 per cent fall in October 2011. I believe thatthe contraction of air freight volumes this year— and the story may be repeated around theworld— is a sign of turbulence ahead for bothlocal and global economies.”

Amidst the cautionary approach, the ITmajors that have been providing solutions willmove ahead in 2012. Sankalp Saxena, Presidentand Head - Aviation Operations & Cargo Linesof Business, IBS Software Services, agreed thatthe air cargo industry had not had many ‘path-breaking’ innovations in the recent past.“However,” he said, “there are several initia-tives such as e-Freight and Cargo 2000, whichdo bring in some aspects of innovation into theair freight industry, but these are logical exten-sions of existing business processes. Several

initiatives that are fairly well established inSCM practice such as lean logistics, 3PL, pickand pack, multi-modal transportation are stillwaiting to be adopted into the core air cargoindustry processes.” Saxena went on to saythat the captains of the industry includingmajor airlines were already thinking of suchconcepts along with enablers such as piece-level tracking, RFID/GPS-based tracking andmonitoring and electronic processing. “Thefuture,” he said optimistically, “looks excitingand the time is ripe for change and we areready and keen to be the catalyst for change.”

On its part the government has made somemoves to ensure that the air cargo industry inthe country is not hampered by the lack ofinfrastructure. In fact, the Indian aviation sec-tor has started dreaming big. “India,” accord-ing to Dr Nasim Zaidi, Civil Aviation Secretary,“has the potential to emerge as a global trans-shipment hub.” He was speaking at a recent aircargo seminar.

Dr Zaidi has been taking a special interestin air cargo and has initiated moves over thelast year or so to ensure that the sector is com-parable to those in developed nations. In fact,his initiatives have earned him the title of “theguardian of the airfreight industry”, from theAir Cargo Agents Association of India(ACAAI). Dr Zaidi was instrumental in the set-ting up the Working Group on AirCargo/Express Service Industry.

The Working Group had been entrusted toaddress the issues related to the air cargoindustry and prepare the current situation ofthe industry and assess its future growthpotential. The Group, comprising representa-tives from the airline industries, airports, cargoassociations, the Customs department and theMinistry, has completed a detailed study of theexisting system of services available and iden-tified areas that require further improvementsto seize the emerging opportunities in interna-tional trade and in the context of the fasterpace of economic growth in India. The workdone by the civil aviation ministry was empha-sized by Bharat J Thakkar, President ofACAAI, “The government and the civil avia-


CARGO

Amidst thecautionary

approach, the ITmajors that havebeen providingsolutions will

move ahead in2012

“We believe that we will also see additional growth forthe express sector coming from Tier-2 and Tier-3 citiesin India.”Kenneth F Koval, Vice President, Operations, FedEx Express India.

“There is no sign of cargo uptake for the first fewmonths. However, as cargo is volatile, the later part ofthe year may see better times and a gradual upturn.”Ashish Kapoor, Regional Manager Cargo - South Asia, Middle East and Africa, Cathay Pacific


tion ministry in particular have made com-mendable progress in just seven months sincethe announcement of the setting up of theWorking Group on Air Cargo /ExpressIndustry. All stakeholders were invited formeetings to get a complete picture from allstakeholders and under the chairmanship of MKannan, Economic Advisor to the Ministry ofCivil Aviation, a policy on Air Cargo/ ExpressIndustry — a first in India — is expected,” hesaid.

The group, incidentally, is readying thefinal report— which is expected to be submit-ted to the government in a few weeks - and isexpected to not only make recommendationsbut also incorporate the best internationalpractices in the Air Cargo/Express ServiceIndustry and their suitability in the Indian con-text.

Aware of the bottlenecks at Indian airports,Dr Zaidi said there was “a need to decongestcargo terminals with simplification of customsprocedures, greater use of mechanised han-dling and speedy clearances of shipments” andthe Civil Aviation Ministry has geared up toinfuse new life in the sector. As Secretary Zaidipointed out, the government was working on anew Civil Aviation Policy that would specifi-cally seek to promote private investments inthe ailing sector. “We have decided to frame anew civil aviation policy that will help meetthe challenges of the next decade. The chal-lenges are wide-ranging from viability of thesector to human resources. The policy willencompass all that,” Dr Zaidi said.

The policy will be applicable for 10 yearsand will be the foundation for a promotionboard for air cargo. “We have about fivemonths to complete the process,” said DrZaidi. Meanwhile, he emphasized, the airfreight stations at Mumbai and Chennai — thetwo were set up some time ago but have yet tostart functioning — would start operationssoon. The Secretary also hoped that to keep upwith the booming traffic in cargo, customs pro-cedures would have to be reviewed for speedyclearance of cargo.

The Secretary’s assurance about the newpolicy comes at a crucial time. There was anurgent need to help the air cargo industry tonot only stand steady on its feet but marchahead. Dr Zaidi underlined the fact that GDPhad been growing annually at nearly eight percent and that the air cargo industry had record-ed an average annual growth of 12 per cent.Indian airports, in fact, had handled a total of

2.33 million tonnes of cargo in 2010-11. Whiledomestic cargo was expected to increase from0.8 million tonnes to 1.7 million tonnes by2016-17, international cargo will move from 1.5million tonnes to 2.7 million tonnes during thesame period.

In the short term, the situation does not looktoo encouraging although there are indications,according to air cargo pundits, that point to abrighter future. A major indicator is the ForeignDirect Investment (FDI) limit in cargo airlinesthat was raised by the government from 49 percent to 74 per cent. The move has attractedplayers from abroad — especially those fromthe Middle East — to expand their Indian net-work.

The other indicators are technologicaladvances. IT has evolved over the last two orthree decades from an information processingtool to one that is helping corporations decidecurrent and long term strategies. Said IBS’Sankalp Saxena, “IT strategy these days isseen to be tightly in sync with business strate-gy and is not a separate entity or a derivative.Air cargo business is no exception to this. Inrecent times, we saw the revolution whichwas led by a handful of companies, which hascompletely shifted the air cargo industry’sdependence on cumbersome legacy-basedplatforms to smart and lean ‘new-generation’systems that enable business as well as ITusers to derive a host of benefits.” Whatremains to be seen is whether the futurewould see the start of a smarter new breed ofIndian-cargo operators and, of course, betterair cargo facilities.


In the short term,the situation

does not look tooencouraging

although thereare indications,according to aircargo pundits,that point to abrighter future

“I have for last few months prayed that the worldeconomy hits its bottom fast, for once it get there, theonly way for it to move is up.”Shesh Kulkarni, President and CEO, UFM

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I f 2012 is to look any different from any ofthe previous 50 years in air cargo, a lot ofthe mindset in our business needs tochange. In this process, the air cargoproposition for the final customer will

need to shift from multiple offerings from amyriad of suppliers, to a single interfacebetween the air cargo community and the ulti-mate customer. “Total Supply ChainVisibility” will need to become the new sirensong of this business.

Air cargo shippers already have theirhands full dealing with the multiple entitiesthat comprise the global supply chain, eachwith its own set of priorities and agendas.What the new order calls for is the likes of a“Global Event Planner” (GEP) that can bundleall the multiple offerings of the various ven-dors in the chain, and then stitch them into aseamless supply chain offering. Today's cus-tomer is demanding reliability, predictability,and total visibility and transparency, all of thisat a reasonable price.

Such service offerings already exist in aircargo. Integrators such as FedEx, UPS andDHL have taken the “bundling” of various aircargo functions to a new level with their “timedefinite” and “overnight” products, and haveearned handsome returns in the process. Byowning or controlling all of the assets in thesupply chain, and reinforcing the chain withthe best that information technology has tooffer, they have created fortress like structuresthat spinoff mountains of cash, while makingit almost impossible for newcomers to enterthe business or compete with them.

Fortunately, however, not all air cargo canafford to travel in the luxury afforded onboard the main decks of a FedEx, UPS or DHLfreighter. The vast majority of remaining airfreight while urgently needing supply chainvisibility cannot afford to pay the usuriousrates of the integrators. Thus, what the worldneeds today is an entity that can provide thisfunction, with personalised service and with-out overcharging.

While many airlines are large and have aglobal footprint, they seem either unwilling orunable to perform this role. The last majorforay by an international airline into thisspace was the attempt by KLM to bypass theforwarders and directly solicit freight fromthe shippers. As history will show, they failedmiserably, and quickly had to retrace theirsteps. Similarly, trucking companies, ware-house providers and ground handling compa-nies are ill-equipped to provide a global offer-ing that today's savvy customers demand.

With 80 per cent of all air cargo being con-trolled by 20 large forwarders with their glob-al footprints (the time honoured 80/20 rule),they seem to have all the necessary qualifica-tions to become the new “Global EventPlanners” (GEPs) and unleash the dynamicsof the modern air cargo business. With theirability to garner massive volumes of freightfrom multiple shippers they have the uniqueability and buying power to contract with andunite multiple vendors in the supply chain,either through outright purchases of suppliersor through “very long-term contracts”. Thesewill include contracts for trucking, warehous-


Air cargoshippers alreadyhave their handsfull dealing with

the multipleentities thatcomprise theglobal supply

chain, each withits own set ofpriorities and

agendas

IT IS TIME TO CHANGE THE RULES OF THE GAME IN 2012, ADVISES D J GHOSH, AND PLAYDIFFERENTLY. ONCE AIR CARGO STAKEHOLDERS DO THAT, IT WILL BE POSSIBLE TO HAVE ASINGLE INTERFACE BETWEEN THE AIR CARGO COMMUNITY AND THE ULTIMATE CUSTOMER.

CARGO

A brave new worldfor air cargo

D J GHOSH

ing, and security, IT and ground handling, air-port usage and aircraft.

At the end of the day, somebody has to put“skin in the game”, and make the commitmentto either buy assets or enter into long-termcontracts with suppliers. Without this, supplychain visibility will continue to be a pipedream, and we might as well continue to oper-ate the next 50 years as we have in the previ-ous 50. The new GEPs thus need to take a pageout of the books of the integrators to updatetheir game plan. They must then incorporate“personalised service” to endear themselvesto different sets of customers.

Outdated cargo airline model, a legacy ofpassenger operations, where the owner oroperator takes on all the risk of owning andplacing the aircraft assets and operating on aschedule, based on short-term contracts ofshippers and forwarders, is doomed to failure.In this scenario, freighter operators havealmost zero-pricing power and almost all therisk, leading to paper thin returns on capital,if any. The air cargo world is littered with thecarcasses of “wannabe” freighter operatorswho committed vast amounts of cash withoutthinking through this simple premise.

The same goes for operators of expensiveground handling equipment. In the new aircargo landscape, both freighter operators andground handlers need to change their focusand become “vendors and sub-contractors” inthe supply chains of the GEPs, secured bylong term contracts with performance guaran-tees for quality of service and assurances for afair return on capital.

The new world order demands that boththe passenger and freighter airlines under-stand that they do not control the freight any-more, nor do they directly service the finalcustomer. Thus, their new masters are theGEPs who are closest to the customers, andwho take on on the entire risk of providingthese customers with a seamless supply chainoffering. Adopting such a new mindset willundoubtedly shake up airline boardroomsacross the globe and force senior airline exec-utives off their high pedestals.

A shining example of this dynamic is therelationship between legacy airlines andregional carriers in North America, where theregional carriers operate as sub-contractors onbehalf of their legacy carrier parent companiesunder long-term contracts of 10-12 years.Their only purpose of existence is to do thebidding of their legacy carrier masters. Thismodel seems to have worked since almost allregional carriers are profitable and are incen-tivised to provide new equipment and excep-tional service, while constantly sharpeningtheir offerings.

Thus, the new supply chain will emerge asa string of independent vendors of sub-con-tracted air cargo services which have been vet-

ted and certified to provide the reliability andpredictability that is required to complementthe global delivery model of the GEPs. Each ofthese vendors will be measured against KeyPerformance Indicators (KPIs) and will begrounded in the latest Six Sigma processes. Akey component of this global delivery modelwill be the use of Information Technology,which will not only unite the different tech-nology platforms of individual “sub-contrac-tors” but also provide visibility and trans-parency, while identifying excursions fromestablished standards. All of this will up theante in an industry with a very incompleteand divisive offering.

The lingering question is how we get theseso-called GEPs, be they large forwarders orother independent organisations, to get their“skin in the game”. How do we “de-risk “thiswhole process to make it easier for suchorganisations to get into the game of eitherasset ownership or long-term contracts? Canwe borrow another page, this time from thefinancial sector?

Wall Street investment firms help mitigatefinancial risk by pooling investments in differ-ent industries into mutual funds, which arethen easily marketable. If the small shipmentsof multiple customers with regular orderscould be aggregated through a technologyplatform to “bundle” up different consign-ments, this might provide the beginnings of“risk mitigation” for longer-term contractingin the industry for both small and larger for-warders. Something to think about as 2012unfolds!

(The writer is President, American FriendshipCargo [www.american-friendship.com]).


The new worldorder demands

that bothpassenger and

freighter airlinesunderstand that

they do notcontrol the

freight anymore,nor do they

directly servicethe final

customer

TOUGH TASK: Fedexand UPS freighterslined up on the tarmacat one of the US air-ports.

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FLIG

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As 2011 faded away leaving India’saviation sector in dire straits, quite afew aviation stakeholders — andthat includes the government —came up with cures that would

revive the sector. The sector is groaning undera debt burden of `one trillion during 2000-10and losses of `200 billion in the past threeyears. According to the Centre for Asia PacificAviation (CAPA), Indian carriers lose $25every time a passenger takes a flight. CAPA’sOutlook 2012 points out airlines in the coun-try will lose a whopping $2.5 billion in 2011-12. Kapil Kaul, CAPA’s South Asia CEO wasreported as commenting that, “2011 is theworst-performing year for the sector. Theseare record losses in the history of Indian avia-

tion. Such losses have never been there even inFY08 when the fuel went up to $150 and oper-ating environment was hard... The appetite forlosing money is the highest in India. Weexpect a very, very tough 2012.”

Bringing in a fresh ray of hope, theASSOCHAM (Associated Chambers ofCommerce and Industry of India is the coun-try’s premier apex chamber covering a mem-bership of more than 200,000 companies andprofessionals across the country) has put for-ward an eight-point strategy bouquet for theaviation industry to put it back on the growthpath in 2012. Said Secretary General D SRawat, “With the right vision, roadmap, poli-cies, regulatory framework and a relentlessfocus on quality and cost, India would be well


OPPORTUNITIES APLENTYTHOUGH ALL OUR AIR CARGO VENTURES HAVE FAILED TO TAKE OFF, IT DOES NOT MEAN THAT THE COUNTRY DOES NOT HAVE THE POTENTIAL. WITH THE RIGHT INPUTS FROM THE GOVERNMENT AND ADEQUATE BACKING FROM THE PRIVATE SECTOR, INDIA'S AIR CARGOSTAKEHOLDERS COULD LOOK FORWARD TO A WHOPPING GROWTH OF FIVE TIMES THE PRESENT TONNAGE IN THE NEXT 20 YEARS. A REPORT.

The aviationsector is

groaning under adebt burden of`one trillion

during 2000-10and losses of`200 billion in

the past 3 years

LOGISTICS OF FUTURE:The Pharma Zone atHyderabad airport.


CARGO

set to claim its rightful place in global civilaviation industry.”

One of the points is the permission by thegovernment to three major airlines — JetAirways, Kingfisher Airlines and SpiceJet —to offload 49 per cent of the promoters’ staketo foreign airlines to raise `2,550 crore.Whether Parliament will allow that to happenor not is a million-dollar question but the for-eign direct investment (FDI) route to bring incapital and technological expertise, accordingto ASSOCHAM, will not only allow easieraccess to global routes by Indian carriers toincrease yields but also enhance air trafficmanagement infrastructure.

Keeping in mind the strong growth incargo and passenger traffic, ASSOCHAM saidthat if the government put progressive poli-cies in place along with a collaborativeapproach between itself and industry, themoves would propel India to the top five avi-ation markets globally by 2015. The CivilAviation Ministry has put into place enhance-ment of capacity at a number of airports inmetro and non-metro cities. In fact, the gov-ernment’s 12th Five Year Plan (2012-17) willsee infusion of at least `67,500 crore inairport infrastructure.

Prepared by the ASSOCHAM CivilAviation Council, the strategies for growthanalysed the aviation sector’s performanceover the past three years and suggested cre-ation of an infrastructure development fundto build airports in Tier-II and Tier-III citiesand bringing parity with global aviation tur-bine fuel prices.

As for air cargo, with freight traffic at air-ports increasing by nearly 11 per cent over thepast five years to reach 23.3 lakh tonnes in2010-11, ASSOCHAM has advocated the cre-ation of an empowered air cargo promotionboard to fix quality of service and responsibil-ity of each stakeholder while upgrading thepresent air cargo infrastructure with hi techautomation and streamlining of customs pro-cedures. This would make India a transship-ment hub for east-west cargo.

On its part, the government has adopted apro-active mode with Prime Minister DrManmohan Singh personally overseeing thefulfillment of targets. The Prime Minister’soffice announced a slew of initiatives towardsthe end of December 2011 with deadlines forthe civil aviation industry’s revival. Amongthese are, of course, the finalisation of theturnaround plan for Air India, the finalisationof the policy to enhance the utilisation of traf-fic rights by Indian carriers, the framing of anEconomic Regulatory Policy to promoteinvestments in airport infrastructure and eventhe establishment of a National AviationUniversity.

It will be worth pointing out that thedomestic air cargo industry is at a crucialjuncture. Not one domestic freight carrier —Captain G R Gopinath’s Deccan 360 andCaptain Mukut Pathak’s ACE — exists todayalthough Quikjet is all set to enter the marketin its second avatar. Even so, the potential isimmense. As Dr Naseem Zaidi, Secretary,Civil Aviation, said at the inauguration of arecent cargo meet: “If growth potential of theair cargo segment is appropriately harnessed,Indian airports could become cargo hubs inthe region.” He was referring to the newnational air cargo policy that is looking at theprojected five times the present air cargogrowth in the next 20 years. Dr Zaidiannounced to the world at the conference thatwhile a roadmap was being chalked out keep-ing in mind the future, the working group onair cargo that had been set up by the CivilAviation Economic Advisory Council, was inthe process of finalising its report and a frame-work to tackle air cargo issues. “That,” said DrZaidi, “will form the basis of the national aircargo policy.”

M Kannan, Economic Advisor to theMinistry of Civil Aviation, one of the speakersat the meet, enunciated the government initia-tives that will be taken for the civil aviationindustry in the immediate future that will

ASSOCHAM hasadvocated

the creation ofan empowered

air cargopromotion board

to fix quality ofservice and

responsibility of each

stakeholder


have a beneficial effect on both the air cargoindustry and its sustained economy. He alsoexplained the changes that have been takingplace in the Indian air cargo industry — thecountry is now the ninth largest aviation mar-ket in the world — and the main challenges tothe air cargo industry’s growth: inadequateinfrastructure, slow adoption of technologyand unskilled manpower. The country needsto match its supply chain efficiency with glob-al air cargo supply chains to bring in prof-itability and stimulate growth.

It is not that we are not trying: India hasaroused the interest of airports around theworld. According to D P Hemanth, ChiefOperations Officer (COO) for HubDevelopment at GMR Airports, the presenceof a number of airports at ACI was proofenough that the country’s air cargo infrastruc-ture was being noticed. He put it simply:“Airport infrastructure is as critical to the sup-ply chain as it is to the airlines and freight for-warders and we (from the GMR Airports)were able to showcase our pharma zone facil-ities which Lufthansa has certified as ‘world-class’ anywhere outside Germany.”

Others like Mohamed Parkar, VicePresident Commercial and acting ChiefOperating Officer, Maximus Air, echoedKopp. Banking on Indians, the largest groupof investors in the UAE, Maximus displayedits international ambitions at ACI — this wasits first ever appearance at a major show in itsnew avtar as Maximus Air — focussing on theIndian sub-continent as one of the key regionsfor the growth of its business outside the Gulf.The show, according to Parkar, presented anopportunity to showcase how the carrier hadgrown to become a key player providing end-

to-end solutions. He also made it clear thatMaximus’ presence along with other carriersfrom the Gulf attested the “strong position ofthe UAE and its role as an important hub forservicing the neighbouring economies. Ourexpanding operations out of the UAE capitalof Abu Dhabi mean we are well placed to serv-ice the needs of those businesses into thewider Arab world countries.” Perhaps,Emirates’ Ram Menen comment at the aircargo meet best summed up the opportunitiesfor the air cargo trade. “India,” he said, “defi-nitely is the happening place!”

The Gulf carriers’ are not the only onesthat are keen to build and strengthen theirIndia links. Experts have pointed out that thebeeline for India by the Gulf cargo carrierswas primarily to boost their respective hubs— Etihad Crystal Cargo, for instance, is keento ensure that the Abu Dhabi InternationalAirport turns into a cargo hub that can runwith the ones at Doha (Qatar Airways) andDubai (Emirates Skycargo) has recently beenjoined by Royal Jordanian (Queen AliaInternational Airport) — the carriers havemaintained that the Indian market has a lot ofpotential.

To cash in on the potential, a new entrant -MASkargo (formerly known as MalaysiaAirlines Cargo Sdn Bhd)) — has started show-ing interest. Incidentally, the 108-acre KLInternational Airport (KLIA) main hub isundergoing a massive makeover. Once it iscompleted, the hub will be able to handle onemillion tonnes from the present 600,000 metrictonnes. The hub will have the potential to pushup the tonnage to up to 3 million metric tonnes.

One of the destinations that MASkargo islooking at is Hyderabad and its facilities for


The countryneeds to matchits supply chainefficiency with

global air cargosupply chains to

bring inprofitability and

stimulategrowth

FLYING HIGH : A BlueDart plane at the aircargo terminal in Chennaiairport.

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pharmaceutical exports. Lufthansa Cargo andthe GMR group, which operates the RajivGandhi International Airport at Hyderabad,signed a memorandum of understandingaimed at jointly developing the airport into amajor cargo hub of Asia for the transport oftemperature-sensitive pharmaceuticals.Lufthansa has stationed its Opticoolers at theairport for pharma carriage. In fact, Lufthansahas opened a new cold cargo facility inFrankfurt to add to the pharmaceutical hub inHyderabad. Over the next few years,Lufthansa has plans to put in six of its MD-11sby 2015 to handle pharmaceuticals as five ofthe B777s ordered will start coming in by theend of 2013.

Hyderabad has the first-of-its-kind pharma-zone and the airport has a cargo capacity of100,000 tonnes; 80,777 tonnes of cargo was han-dled in 2010-11 of which 55 per cent was inter-national and a whopping 60 per cent of thatcomprised pharmaceutical products. Theauthorities point out that other than Lufthansa,a host of other freight carriers have been invitedto utilise the facilities at the airport. Accordingto Chief Operating Officer Hemanth D P, theairport was in discussions with five majorfreighters to start operations from Hyderabad.

For the time being, MASkargo does nothave freighters coming to India and dependssolely on belly capacity of Malaysia Airlinesdaily flights to Mumbai, Chennai, Delhi,Hyderabad and Bengaluru. But India is on thecarrier’s growth plans and on its sights areChennai and Delhi. Specifically for itsSoutheast Asian routes, China, India and thedomestic routes within Malaysia, the carrierhas ordered as many as 55 new Boeing 737-800s. Also on the purchase list are 15-odd

Airbus A330 planes that will be inducted inthe fleet between 2011 and 2016.

Pharma is where the market will be.Incidentally, the downturn did not affect thepharmaceutical industry and even the presentcondition — where freight is not doing too well— would not be affected. At the end of last year,India’s President Pratibha Patil while inaugu-rating the 71st World Congress of Pharmacyand Pharmaceutical Sciences pointed out thatthe country had a potential to emerge as one ofthe top five innovative hubs in the global phar-maceutical sector, contributing 50 per cent tothe drugs discovered worldwide.

The country’s pharmaceutical exports arepredicted to grow 23 per cent every year till2015 as the quantity of generic drugs increas-es. Among these generic drugs are those forHIV treatment which are sent out to Africa bychartered flights — many of them originatingat Hyderabad. Not many are aware that withmore than 100 manufacturing plants, India isthe only country that has more US-approvedpharmaceutical manufacturing facilities thananywhere else.

However, once again, the lack of adequateinfrastructure has been curbing the growth ofthe pharma sector’s exports. It may be men-tioned that the Federation of Indian Chambersof Commerce and Industry (FICCI) in itsstudy found out that around 30-35 per cent ofthe country’s 60 mt of fruits and vegetablesproduced is wasted due to lack of cold storageand other facilities. The Confederation ofIndian Industry (CII) recently estimated thatthe country’s cold-chain infrastructure wouldrequire at least US$4.5-billion investment overthe next five years to meet the growingrequirement of this facility.


Hyderabad hasthe first-of-its-kind pharma

zone andthe airporthas a cargocapacity of100,000

tonnes

EASY PICKINGS: Insidean air cargo complex atone of the Indian air-ports.

GHIA

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In last few weeks, the Supreme Court ofIndia has made a few landmark judge-ments — be it with regard to theVodafone tax-related matter, 2G, or eventabling an observation in the issue related

to the age of Indian Army Chief. What hasemerged is very interesting. The outcome,incidentally, is not a big surprise to the com-mon man who follows a logical and rationalapproach to the decision-making process. Itnow appears that the population in the urbanareas relate to the outcome and are apprecia-tive of the Supreme Court’s intervention anddirection associated with it.

India and Indians who largely in the urbandomain are seemingly educated, well-travelledand well-informed choose to turn the other waywhen faced with issues of national or largerimportance outside their personal domain. If thisbe the outlook or attitude of the population atlarge, imagine the fate of the logistics businesswhich is isolated and stands alone amongstgiants like the infrastructure providers, airlines,government, legal systems, etc.

This is the 65th year of our country’sIndependence and if one were to write a storyof the significant achievements of the country,we cannot write much. It might sound cynicalbut the truth seems that we have only onestory to tell: we do have a robust democracythat in many ways is the beginning and end ofit.

By now we should have built many world-class roads, highways, ports, airports (we

have got only part of this right) railway sta-tions, eliminated all the backlog significantlyin our law courts, established accountabilityin our political system and bureaucracy andalmost everything that touches the life ofcommon citizens and businesses. Have we?Where are we going wrong?

I love my country and am a proud Indian too!However, of late, in the last year or two, I haveoften woken up feeling guilty about the contin-ued indifference all around and feel as muchparty to it. This Chalta Hai attitude needs to bearrested!

One could always argue: What is the hurrynow? We have, as a nation, come along this farand continued to post single-digit or double-digitgrowth. What then is the need?

This, in my opinion, is the key referencepoint. One only need to take a look at globaleconomies. For the sake of argument, take a lookat the American economy, a multi-trillion dollareconomy. When an economy of that magnitudeshows a positive swing of just one per cent, theeffect it has on the world is significant. That oneper cent has the ability to swing the mood andmorale of many economies around the worldincluding India. Hence, it is important to studythe country and its growth in the proper contextand not in isolation.

Our slow progress in deregulating the inter-state tax structure is a significant deterrent for thegrowth of the Indian economy and the logisticsbusiness. Imagine and calculate what we asnation are doing to deprive Indian businesses. To


Our slowprogress in

deregulating theinterstate taxstructure is a

significantdeterrent for the

growth of theIndian economyand the logistics

business

A LOT IS BEING DONE TO IMPROVE INFRASTRUCTURE — PORTS, AIRPORTS, ROADS, ETC. —BUT THE TRUTH IS THAT EACH COMPONENT IN THE SUPPLY CHAIN HAS BEEN FUNCTIONINGIN ISOLATION. THE ONLY WAY OUT IS TO ENSURE THAT SUPPLY CHAIN STAKEHOLDERSCOORDINATE MOVES TO BOOST LOGISTICS, WRITES SHESH KULKARNI.

CARGO

Crying outfor logistics

SHESH KULKARNI

begin with, we are failing to leverage the growthopportunity available in the interiors of this coun-try by not introducing one federal tax structure(GST). The delay in the implementation is affect-ing business, and that in turn is affecting theeconomy and development. Even if the govern-ment were to take a decision on GST in the nextyear or two, we will still be losing a lot. By notmaking its intentions known to the larger busi-ness community in the public domain will onlyresult in piecemeal delivery and do little to bene-fit the large section of logistics companies that arekeen to invest in infrastructure which will bedependent on clarity. Building infrastructuretakes time and if done in a disjointed manner willonly add to cost and make products and theirdeliveries more expensive. It will not be fruitfulfor a long time. It is important for our ministriesand departments to come together in the deci-sion-making process. This will help reduce logis-tics costs of products.

Similarly, India is a significant player in SouthAsia but has done nothing to leverage its status inthe region from the industrial point of view. Ourcountry boasts of the largest coastline in theregion in the east, south and west. Would it notmake sense to establish free trade zones in thesecoastal belts and provide support with goodwarehouses, industrial parks, roads to the interi-ors of the country? Imagine the impact it willhave, both on growth of state economies, localindustries and the opportunities these will throwup for logistics industries to mature. The growthwill be so high that the country would not be ableto harness. It will find itself attracting seriousbusiness from neighbouring nations and a largeshare of the north Asia business will find its wayto India helping the the country to grow at amuch faster rate than its current one. This willalso help the larger Indian business communitybecome more competitive with those in otherparts of Asia. Besides, it will see the fast-forwardgrowth of both domestics and international busi-ness ex-India.

While roads are the key to a successful econ-omy, so is power, water and waste management.It is scary to note that we have power shortage.Why? Because we have not leveraged solarpower, wind energy or even thermal power!After 60 years, we should not be groping in darkon these matters. Water is in abundance in Indiabut it is not used properly. So it is with wastewhich is as much in existence and needs processand management to make it productive.

Through all this, logistics has a key role toplay. Hence, once again isolated decision-makingby ministries will not help anyone but will hurtbusiness the most that in turn will impact theeconomy. However, if integrated well, logisticscost on the product and produce can be broughtdown significantly.

Accountability and decision-making of anykind are the need of the hour. Politicians, bureau-crats, officials, private industry leaders, trade

bodies, etc. all should be made accountable sincemany a time those in leadership positions takedecisions and do not feel accountable. Thisresults in the creation of power blocks which inturn lead to decisions that are based on ill-researched facts. The formation of a charter ofdeliverables is important and should be designedand articulated by people who are experts in theirfields with proven track records. Ultimately, anymove made by the leadership should focus on thelong-term good of the country. These call for spe-cial initiatives and can only happen if accounta-bility is put in place. Such accountability shouldstand strong beyond the tenure of policy and thedecision makers.

Today, the logistics industry which comprisesairlines, shipping lines, the road transport indus-try, government agencies like Customs, legalmachinery and other related authorities, talk toeach other in isolation with no long-term visionor agenda. Most of the decisions are momentaryand opportunity-based which is not good foranyone, particularly if India has dreams tobecome a significant player in the Asian market.Our authorities have to bring logistics in the loop;it’s only then that logistics will come down torealistic levels. Current research indicates thatlogistics cost is almost 20 per cent of a product’scost! That is not sustainable for the long-term. It istime then to reinvent the wheel and as a first steprecognise logistics as an industry, give it a statusof importance and make it integral to everyindustry. Merely building airports, ports, roads,etc., in different phases will not be beneficial foranyone.

It is important that the urban Indian popula-tion lead this initiative from the front anddemand this through a people’s charter. The gov-ernment and the leadership of the country mustfocus on growing the economy to get scale whileour judiciary can help the people define manykey aspects and put accountability in place. It’sonly then that we will have supply chain solu-tions which will deliver larger solutions for thelarger good of the country. To achieve this logis-tics has to be in the centre.

(The writer is President and CEO, UFM and canbe reached at [email protected].)


It is time toreinvent the

wheel and as afirst steprecognise

logistics as anindustry, giveit a status ofimportanceand make it

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OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2SNIPPETS

SpiceJet starts Surat operationsIt was dream come true for Surtis when SpiceJet flight car-rying 159 passengers from New Delhi landed at Surat air-

port. Passengers who gathered at the airport were given anexciting welcome by different political parties. The organ-isers even distributed Fafda-Jalebi to all passengers. WhileSpiceJet crew also distributed diamond-shaped chocolatesto all passengers in the flight.

After the traditional water salute, the flight took offwith 103 Mumbai-bound passengers from the city. SpiceJetCEO Neil Mills said, “We were not aware about Surat’spotential earlier. Once we learned about it, we wasted no

time in coming here. It was the demand for air connectivi-ty on Facebook by the people of the city and later the per-sistent efforts by South Gujarat Chamber of Commerceand Industries pushed us to coming here.”

R Natrajan, Director of the private carrier, said thatSpiceJet will offer competitive rates from Surat for con-necting flights to other big cities like Kolkata, Chennai,Hyderabad, Bengaluru and others.

Rohit Mehta, President, SGCCI, who with UnionMinister Tushar Chaudhary and Mills, flagged off the firstflight to Mumbai at the airport. BJP MPs C R Patil andDarshana Jardosh along with more than 35 of their sup-porters landed in the city on this new flight from NewDelhi and a number of diamond barons and SGCCI mem-bers travelled to Mumbai in the same flight.

DIAL trains cabbies Cab drivers at IGI Airport will soon be a better-behavedlot. The airport management conducted special workshopsfor drivers — of both radio cabs and regular taxis — and

imparted lessons in safety,security, personal groom-ing and politeness.

Mohammed Anuddin, attended a session and said thatwhile he and his colleagues had to undertake obligatorytraining with his company before they were allowed tooperate, the classes gave him and his colleagues an


DOMESTIC AIRLINES

Air India to fly from Vizag to DubaiThe dream of the people of Visakhapatnam to fly to inter-national destinations from the airport became a reality asthe Union Civil Aviation Minister Ajit Singh agreed toallow operation of Vizag-Dubai Air India flight and inau-gurated the first flight on March 27 in the steel city.

People visiting to and from Visakhapatnam, wouldbenefit a lot from this daily flight operation as manyNRIs in the US belong to this North Coastal Andhraregion. Rajya Sabha member and former UnionMinister from Andhra Pradesh T Subbarami Reddytold The Hindu after meeting with Singh, that the deci-sion would immensely benefit people in the city as wellas those in the surrounding districts in Andhra Pradeshas well as Odisha.

He commented that two years back when the thenUnion Civil Aviation Minister Praful Patel visited Vizagto participate in his birthday celebrations, he promised

to bring international flights to the city. Sources saidsince Dubai is well connected to international destina-tions, particularly to US and Europe, people visiting toand from Vizag, would benefit a lot from this dailyflight operation as many NRIs in the US belong to thisNorth Coastal Andhra region.

Presently, the administrative control of the Vizagairport, including the air traffic control, comes underthe Indian Navy's air station INS Dega and the inte-grated new terminal of the airport was inaugurated onFebruary 20, 2009.

A new expanded runway, 10,500 feet long, wasadded to the airport on June 15, 2007, and after that AirBus A320 flights started landing in the airport.Presently Air India, Spicejet, IndiGo, KingfisherAirlines and Jetlite flights operate from the airport tovarious domestic destinations like Delhi, Kolkata,Bhubaneshwar, Chennai, Tirupati and Hyderabad.

Announces Silver and Platinum pass: Air Indiarecently announced a revision of the short term promo-tion scheme, Silver and Platinum Pass for passengerstravelling on its domestic network.

The Pass is being offered in two variants: Silver Passfor travel in Economy class and Platinum Pass for trav-el in Executive class. Valid for unlimited travel on theDomestic network within fifteen days from the date ofcommencement of journey. Travel to be completed onor before April 30, 2012.

Travel must be completed within 15 days from thedate of commencement of journey. The entire journeymust be completed before April 30, 2012.

INTO THE SKIES: SpiceJet CEO Neil Mills among others at thelaunch of SpiceJet’s operations to Surat.

CLEAR SIGNAL: Air India spreads its wings adding new flightsto bring connectivity and passengers on its flights.


understanding of the specific needs of passengers at theairport. “This was like a refresher class. We were told howto behave with the passengers, be polite and open the doorfor them. We were also told that we should help out withthe luggage, especially of women and senior citizens,” hesaid.

“With similar modules, there are two separate seg-ments of the workshop — one for radio-cab drivers andthe other for regular taxi drivers. Normally, passengersview the airport and all related services as a single unit, sowe wanted everyone associated with the airport to knowhow to deal with passengers,” said a DIAL official.

The modules were based on complaints by passengersand on an ‘on-site’ assessment where interaction of cabdrivers with more than 2,000 passengers was observed.

Hyderabad Airport starts second runway The Rajiv Gandhi International Airport (RGIA),Hyderabad, recently inaugurated its second runway. GMRHyderabad International Airport Ltd, the operator ofRGIA, has obtained necessary DGCA clearances, making itthe first greenfield airport in the region with two runways.

With the introduction of new runway, RGIA can con-tinue flight operations uninterruptedly during its regularmain runway maintenance on every Tuesdays. Airportmaintenance is a mandatory requirement for airportsaround the world. With the second runway being opera-tional, continuity of flight operations on Tuesdays willenhance airside efficiency largely, thus making passengertransit through RGIA.

GoAir selects Pratt & Whitney GoAir has selected Pratt & Whitney PurePower PW1100G-JM engines for its order of 72 firm A320neo aircraft. The

agreement represents 144 firm PW1100G-JM engines and isanticipated to include a PureSolutionSM maintenance pack-age. Deliveries are scheduled to start in 2016.

“We selected the Pratt & Whitney PurePower enginebecause we are confident that its performance advantagewill deliver significant savings in operating costs, as well asconsiderable reductions in emissions and noise,” said JehWadia, Managing Director, GoAir. “The PurePower engineis the best long-term solution for GoAir’s growing fleet.”

SNIPPETS

Jet declared winner for customer loyaltyJet Airways recently declared the winner for “Customer& Brand Loyalty in Domestic Commercial AirlineSector” at the 5th Loyalty Awards.

Manish Dureja, Vice-President (Marketing), JetAirways, received the award at a glittering ceremony atthe Intercontinental, Lalit attended by luminaries fromthe IT, trade and travel industries.

The 5th Loyalty Awards are presented by AIMIAand conceived and managed by the Kamikaze B2Bmedia. These awards are the outcome of a combinationof consumer research undertaken in five major citiesaided by nominations received from organisations.

Sudheer Raghavan, Chief Commercial Officer, Jet

Airways, said, “At Jet Airways, we are delighted to receivethis award, which is a reflection of the airline's commit-ment to offering its guests the very best travel experience,on the ground or in the skies, which has resulted in astrong sense of brand loyalty amongst its guests.”

Declared “Favourite Full-Service Airline” at theOutlook Traveller Awards 2011: Jet Airways recentlydeclared the “Favourite Full-Service Airline” at theOutlook Traveller Awards 2011 in New Delhi.

The awards were presented in New Delhi in front ofseveral luminaries from the travel and trade industry.Renowned for the warmth and hospitality of itsacclaimed in-flight service, a reflection of the high stan-dards of the airline's rigorous in-flight training proce-dures, Jet Airways emerged victorious from amongst afield comprising several leading airlines.

Ragini Chopra, Vice-President, CorporateCommunications and Public Relations, Jet Airways,received the prestigious award on behalf of the airline,from Minister for Tourism, Subodh Kant Sahai at theOutlook Traveller Award 2011 function at a glitteringceremony at the Lalit, New Delhi on February 1, 2011.The awards were given away in 18 categories.

These awards, based on exhaustive readers responsestudy conducted across cities, seek to recognise andhonour the best in travel, based on an objective studyconducted by Outlook Traveller magazine. Under theaegis of the Nielsen Company, the survey is polledthrough the magazine and website and is an authorita-tive benchmark of consumer preferences in travel andtourism across 18 categories.

ENGINEERING GROWTH: Giorgio DeRoni (left), CEO of GoAir andTodd Kallman (right), President, Commercial Engines & GlobalServices in front of the PurePower PW1000G demo engine at theSingapore Air Show.

WELL-DESERVED: Manish Dureja, V P Marketing, Products &Merchandising, Jet Airways receiving the award from TimBirchinall, Marketing Director International Development,AIMIA and Jim Sullivan, Partner Colloquy.


High speed Internet access in Turkish Turkish Airlines, together with Panasonic AvionicsCorporation, recently added high-speed Wi-Fi broadband

Internet access to its existing live, inflight television serviceon Trans-Atlantic flights using its IFE platform, PLANET.

Passengers are now able to access high-speed, unlimit-ed Internet with laptops, tablets, smartphones or any otherdevice that is WLAN-enabled. Business travellers can alsoaccess their company’s Virtual Private Network (VPN).The high-speed Internet service will initially be providedfree of charge as an introductory offer.

After this period, passengers will be able to access theInternet via an access code, which will be available forcredit card purchase on board the aircraft via the serviceprovider’s portal pages. Together with the new high-speedInternet service, seatback screens will continue to providepassengers with live TV, the latest news, as well as onlineservices related to Turkish Airlines’ loyalty programmeMiles & Smiles and access to customer relations connec-tions.

AirAsia connects to Tokyo AirAsia X will increase its flight frequency to Tokyo(Haneda), Japan from its current three flights to six flightsweekly effective from March 23, 2012.

From June 22, 2012, AirAsia X will operate daily flightsfrom the low-cost carrier terminal in Kuala Lumpur to theJapanese capital. In addition, AirAsia X currently flies fourtimes weekly to Osaka (Kansai).

Commenting on the added frequency, AirAsia X ChiefExecutive Officer, Azran Osman-Rani said, “The increasein flights to and from Tokyo is in response to the growingdemand for the sector, which continues to see steadyincrease in passenger traffic and yields from the timeAirAsia X first began flying into the Japanese city onDecember 9, 2010.”

“With our wide network and strong brand affinity inJapan, we remain focussed to grow our existing core mar-kets and are geared up to capitalise on the continuousincrease in demand for air travel to and from Japan. Wewill also leverage on our affiliate airline, AirAsia to pro-

vide a feeder network for intra-ASEAN travel as the worldshifts its focus towards Asia and the emerging marketsacross ASEAN.”

First airline in Asia to introduce innovative emptyseat option: Guests onboard AirAsia X can purchaseaffordable options for the empty seat(s) next to them tospread out comfortably over a full row of three seats.

From January 2012, AirAsia X and its technology part-


INTERNATIONAL AIRLINES

United announces new routes United Continental Holdings recently announced

plans to launch year-round and seasonal service on sev-eral new routes to begin in the summer of 2012.

“We continue to capitalise on the combinedresources of United and Continental to create a networkthat gives our customers more flights to the places theywant to go,” said James Starnes, United’s Director ofdomestic planning. “The flexibility of our fleet allows usto put the right aircraft in the right markets to serve newcommunities and to add additional flights to communi-ties we already serve.”

United will begin daily year-round service betweenWashington/Dulles International Airport (IAD) andHonolulu (HNL) on June 7, 2012, the only nonstop serv-ice between the two points. The flights will operateusing Boeing 767-400 aircraft.

Since the October 2010 merger of United andContinental, the larger combined fleet has given the

company flexibility to better meet market demand.United has added new routes from its hubs to interna-tional destinations such as Lagos, Nigeria; Guadalajara,Mexico; Montreal, Canada; Port-au-Prince, Haiti;Shanghai, China, and Stuttgart, Germany, along withnew intra-Asia routes between the Tokyo hub and HongKong and between the Guam hub and Okinawa, Japan.

SEEING IS BELIEVING: Grab of the Turkish Airlines website.

SERENE ENVIRONS: CEO of AirAsia X, Azran Osman-Rani, demon-strating the comfort of stretching out on a full row of three seats,available through Optiontown.

DEMAND AND SUPPLY: Inside an United Airlines' flight.


SNIPPETS

ner, Optiontown, have introduced an innovative new serv-ice, called Empty Seat Option (ESO), available onOptiontown.com. AirAsia X is the first airline in Asia Pacificto offer its guests travelling in Economy, an option whichprovides a chance to get all three seats in a row for a nom-inal fee.

Empty Seat Option (ESo) is AirAsia X’s second success-ful ancillary offering introduced in partnership withOptiontown after the success of its Upgrade Travel Option(UTO) service, launched in 2011.

The UTO provides AirAsia X’s guests the opportunityto upgrade to AirAsia X’s premium flatbed seats. The UTOhas helped significantly increase AirAsia X’s premiumclass load factor (by over 22 per cent) and upgrade yield(by over 60 per cent). Options are limited by flight toensure a reasonable probability of successful upgrades.Each option is dynamically priced.

Etihad offers complimentary visas Etihad Airways is offering complimentary 96-hour touristvisas to guests transiting through the UAE. The visas, idealfor travellers making stopover visits en route to their finaldestination, are being offered in cooperation withRadisson Blu hotel on Yas Island.

The offer is valid for travellers previously eligible forEtihad Airways’ paid-for visa service including passport

holders from Bangladesh, Belarus, Canada, China, Cyprus,Czech Republic, Egypt, India, Indonesia, Iraq, Jordan,Kazakhstan, Lebanon, Morocco, Nepal, Pakistan,

Philippines, Russia, South Africa, Sri Lanka, Sudan, Syria,Thailand, Turkey and Vietnam.

Launches innovative Guest Miles scheme: EtihadGuest is offering its members an innovative new way toconvert their Etihad Guest Miles into cash to spend any-where, anytime.

This is delivered through PointsPay an exclusive, real-time transaction solution that gives Etihad Guest Membersunlimited freedom to spend in-store or online at millionsof outlets worldwide.

Members simply use the PointsPay application (avail-able now as an iPhone app and shortly also via thePointsPay website) to exchange their Etihad Guest milesfor funds to be added directly to their PointsPay Visa pre-paid card before using the card either in-store or online.For online shopping, they don’t even need a physical card,as the system produces a Virtual PointsPay Visa card forthem to use directly on the web.

Cathay recruits Indian flight attendants Cathay Pacific Airways recently announced that it would

be recruiting flight atten-dants from India as partof the airline’s expansionprogramme. Over 2,000shortlisted candidates of

Indian nationality, over 18 years of age and are fluent inHindi and English, were invited to interview sessions inFebruary.

All candidates went through a stringent selection andinterview process. Like the last recruitment exercise held inIndia 15 years ago, the airline will continue to focus on safe-ty and customer service excellence when selecting capableand efficient crew to join the Cathay Pacific family.

Cathay Pacific General Manager South Asia, MiddleEast & Africa Tom Wright said, “India has developed rap-idly to become one of the fastest-growing economies in theworld and a very important travel market. Cathay Pacificis committed to serving India and contributing to thecountry’s aviation industry. Recruiting local cabin crewwill enable us to fine-tune our services to cater specificallyto Indian travellers.”

Flydubai marks its magnificent seven Flydubai chalked up its seventh destination in SaudiArabia, with the start of its three-weekly flights to Taifin the Makkah Province.

Flydubai launched services to the Kingdom inNovember 2010, and now serves Riyadh, Jeddah,Yanbu, Gassim, Abha and Dammam in addition to Taifwith a total of 55 weekly flights across the country.

Flydubai's CEO, Ghaith Al Ghaith, said, “The UAEhas boosted its commercial links with Saudi Arabia overthe past year and the Kingdom is currently the UAE's

top non-oil trading partner. By covering the country'smain commercial and leisure hubs, Flydubai is support-ing these relationships through offering regular travelbetween the two nations. I would like to take this oppor-tunity to thank the Saudi authorities for their supportand assistance in making these flights possible.”

Taif has also been at the centre of Saudi Arabia'sancient and contemporary history, with noteworthyattractions including the Wadi Mitna, Shubra Palace, theRock Carving Site and the Turkish Fort, where legendhas it Lawrence of Arabia fought.

ROCK SOLID: Another facility from Etihad for flyers.


Egypt is gaining its strength backEgyptian Tourism Office partici-pated in three-day Blue Marbleevent held across three major cities— Mumbai, Bengaluru and Delhiwhich brought together some ofthe leading travel agents, touroperators, hotels and resorts,domestic and international airlines,NTOs, state tourism boards,wholesellers and other travel-relat-ed products and services from

across India and the world, on a single platform.Commenting on their participation at Blue Marble in

Mumbai, Director of Egyptian Tourism Office in India,Adel El Masry said, “Blue Marble provides us with anopportunity to meet many Major Indian and global playersin the tourism industry. This will help us in expanding ournetwork of travel& tour operators in India.”

Director of Egyptian Tourism Office in India, Adel ElMasry added, “It gives me immense pleasure and joy topromote the new Egypt post-revolution; we are also re-starting our joint campaigns with our travel partner/oper-ators which we had to keep on hold due to the democraticmovement in the country. We are also launching a newcampaign “we’re Egypt” which is straight from the heartof the Egyptian people inviting tourists all across theworld to visit and experience the new Egypt. We want ourtravellers to know that Egypt is now safe and secure foreveryone.”

Seychelles and Etihad airways team upThe Government of Seychelles and Etihad Airways recent-ly signed a Memorandum of Understanding whereinEtihad will invest to acquire a 40 per cent stake in AirSeychelles Ltd as part of a strategic partnership allianceinitiative between Air Seychelles and Etihad Airways.

The deal was announced by Joel Morgan, Seychelles

Minister of Home Affairs, Environment, Transport andEnergy and James Hogan, President and Chief ExecutiveOfficer of Etihad Airways.

Etihad Airways’ investment of $20 million will bematched by an equal capital injection from theGovernment of Seychelles. In addition, Etihad Airwayswill also provide a shareholder’s loan of $25 million tomeet working capital requirements and support networkdevelopment.

Morgan said, “This is a game-changing strategic part-nership for us, establishing Air Seychelles on a sustainablegrowth trajectory and offering a realistic way forward forlong-term commercial growth. The partnership simultane-ously provides international presence, strategic penetra-tion and a bright future for our national carrier.”

ITC Gardenia welcomes Shah Rukh KhanThe IPL auction held at ITC Gardenia, brought inBollywood Badshah Shah Rukh Khan, who stayed at the

hotel. ITC Gardenia extended a traditional welcome toShah Rukh Khan over Karnataka’s quintessential sweet‘Mysore Pak’ ( first created in the kitchens of the MysorePalace). Inspired by the erstwhile capital city of Karnataka


TRAVEL & TOURISM

Malaysia woos Indian touristsIn the 10 years since its arrival in India, Tourism Malaysiahas grown the country into one of the most popularleisure destinations for both first time travellers andexperienced travellers. The numbers speak for them-selves - from a modest 1,40,000 arrivals from in 2001 to aspectacular 6,93,056 in 2011!

“This spectacular growth ofover 400 per cent in a short timespan has ensured that India is oneof the top three source flight mar-kets for tourists to Malaysia —and is very rapidly closing thegap with the leader China,” saidHj Azizan Noordin, ActingDirector General, TourismMalaysia.

“More than mere arrivals thequality and the interest of thetourists have grown. We are

proud to host 26 per cent repeat travellers from India forpure leisure. This is a larger slice than any other South-East Asian Destination — and in 2012 we would like tofocus our efforts to grow this burgeoning segment,”continued Hj Azizan addressing a gathering of themedia in Mumbai.

The campaign for 2012 takes itscue from the deep-seated interestof the average Indian in Bollywoodand showcases newer and much,much more exotic destinations forthis fast maturing market. Thecampaign, entitled Every DreamNeeds a Destination takes theviewer through a spectacular jour-ney that traverses the most exoticlocations to the most modern struc-tures in Malaysia — showcasing

the warmth and friendliness of thepeople of Malaysia on the way.

ONE-ON-ONE: Malaysian tour agents interactingwith buyers and prospective tourists.

GOLDEN HANDSHAKE: Shah Rukh Khan being welcomed at ITCGardenia.

Adel El Masry


SNIPPETS

— Mysore , the royal sweet was served to SRK on hisarrival at the hotel. Area Manager and General ManagerITC Gardenia, Anil Chadha greeted SRK at the ‘GrandFoyer’ of the hotel lobby. SRK looked dashing in a purpleand gold laced patta extended as a part of his welcome.The personalised amenities in suite for Shah Rukh Khanincluded Memoirs journal -’The Badshah Returns ‘ contain-ing photographs of his previous visit at ITC Gardenia;SRK’s coffee table book; candid picture collage preparedon sugar paper; customized signature chocolates; framedpics of Gauri Khan and Shah Rukh Khan and framed pic-ture of Shah Rukh Khan.

Mauritius: Honeymooners’ delightA honeymoon in Mauritius is simply a dream fantasy.Nothing’s more relaxing than spending time with your part-ner in a lover’s paradise. It promises scenic views, glisteningbeach which is perfect for an exotic moment of togetherness.

It is the destination where your search for a wonderful hon-eymoon destination ends, with sun kissed white sandbeaches. The sensual waters of the Indian Ocean in differenthues and colours ignite the romantic fire in you. A dreamdestination of many people attracts a number of touristsfrom all over the world throughout the year.

The capital city of these amazing Islands is Port Louisthe most sought-after spot for nightlife, food, shopping,handicrafts and casinos. The city’s capital is a strong blendof heritage, luxury, food, shopping and nightlife. TheCentral Market is still the heart of local life and traditions,all gathered to capture the true essence of Mauritius: localcrafts, bright Sarongs and other local products.

Travelport reveals travel agency viewsTravelport recently unveiled findings from a global airlinemerchandising survey which shows strong supportamongst travel agencies to assist airlines in selling ancil-lary services through the GDS. The survey also highlightsthe challenges travel agents face in the selling of theseservices, amid their own pressures to grow revenues,reduce costs and increase productivity.

The unbundling of fares and services in recent years hasseen the growth of ancillary products such as checked bag-gage, meals, lounge passes and upgrades. Agency respon-dents were asked to specify how this change has impactedtheir businesses. Top impacts included confusion aroundwhat services were offered by each airline, productivity andthe need to offer these services to remain a full-serviceagency. Only 16 per cent of respondents saw unbundling asan opportunity to charge or increase fees and 44 per cent of

respondents said they did not impose additional charges forbooking optional services.

According to J B Singh, CEO and President, InterglobeTechnology Quotient (ITQ), “India’s adoption of variedancillary services also has been on an upside curve as notonly the airlines, but the travellers also mature with respectto use of technology. Travelport’s survey will be an eyeopener for the industry, with Travelport’s leading GDS func-tionalities soon to be available for India market as well.”

International skiing destinationAdventure Himalayas recently launched an internationalClass Skiing and snowboarding destination with aGondola ride, Paragliding, Mountain Biking, Snow Mobileand Tube Slide at the centre of the Himalayas in India.

Did the citizens of India ever imagine telling theirfriends that they have just come back from a Ski Holidayat the centre of the Himalayas in India? Sounds unreal butthanks to Adventure Himalayas this is now a reality atSolang Adventure Valley (Manali) in Himachal Pradesh.

In terms of pristine beauty its India’s answer to MtTitlis in Switzerland and Aspen in America. “AdventureHimalayas have been given this fabulous opportunity todevelop Solang (Manali), a picture postcard as India’sleading adventure destination. We are committed to offera world-class product with the extremely pro-active sup-port of the Government of Himachal Pradesh,” said ArunSharma, Chairman of Adventure Himalayas.

Austria: Summer destination 2012The regional tourism boards of Austria, consisting ofVienna, Salzburg, Innsbruck, Zell am See-Kaprun, Tiroland Oetztal Paznaun, were on overdrive promotingtourism in their respective regions. The board heldpress conferences and workshops in Mumbai, Chennaiand Delhi between Feb 6 and Feb 10. Last year (2011)Indian tourist arrival was up by 45 per cent over the pre-vious year. Today India occupies top 10 amongst visi-tors to Austria. Though Vienna and Salzburg, the worldheritage site, are on the radar of India tourists whileother regions are less visited such as Tirol or Ischgl orZell am See-Kaprun or Innsbruck which are West ofVienna. The latter have quaint villages and an hour'sdrive takes visitors to the Alps. Tirol's representativedid not miss to mention that their region is popular withBollywood film producers. Austrian Tours has India-specific tour costing `89,990 (ex-Delhi), of 7 days/6nights conducted tour of Innsbruck, Salzburg andVienna. The cost includes airfare. In addition touristswould be given free rail pass.

RARE SIGHT: Mauritius has an abundance of scenic beauty.

It was in September 1973 that SingaporeAirlines ushered in the brand new B 747 sowell known for its hump-like design androaring engines during take-off and “invit-ed the world on board and showed it a

great way to fly”, writes the SIA website. In theforty years since then, SIA and the SingaporeGirl have flown from the small city-nation to sixcontinents. Millions of passengers have notonly taken trips on SIA’s jumbos — the 747-200Super B, the 747-300 Big Top and the 747-400Megatop — but have treasured memories oftheir flights.

The SIA-B747 saga began on September 1,1973, when engineers and top executives fromthe carrier with members of the press gatheredon Boeing’s tarmac at Seattle to take delivery oftwins: two B747-200s. Then the biggest plane inthe world, the jumbos boasted of unheard of

features like customised wider seats, twolounges, two extra galleys for speedier mealservice and a total of 18 cabin crew for 349 pas-sengers. SIA would add dozens of B 747s overthe next two decades.

Said an emotional SIA CEO Goh ChoonPhong, “Saying farewell to the Queen of theSkies will not be easy. Over more than 38 years,the B747 has played an important role in help-ing SIA become the global airline that it is today.These flights will mark the end of an era, butthe spirit of innovation will live on at SingaporeAirlines. With every new generation of aircraftthat we introduce, we will continue to set newbenchmarks in the premium air-travel segmentwith industry leading product offerings for ourcustomers.”

In a fitting tribute “worthy of its legacy”,one of SIA’s 747s will fly for the last time onApril 6, 2012, on a special commemorativeflight from Singapore to Hong Kong and back(SQ747 and SQ 748) as a celebration of the serv-ice that has made SIA what it is today. Thosewho book for the special flight (incidentally,tickets are available) will be treated to a pre-boarding party at the departure gate. The cele-brations will continue on the hour-long tripwith a unique in-flight experience that willcomprise a special meal, inflight entertainment,exclusive SIA collectibles and lastly a certificatefor each passenger. The first-class passengerswill be treated to a special visit to the B747 sim-ulator and cabin crew training facilities, a tourof the SATS Catering Centre and a special gour-met lunch before the flight. Among the morethan 300 commercial passengers will beemployees who have worked on the aircraftthroughout its storied history, as well as agroup of underprivileged children and media.

The carrier has put up a special website to mark the Jumbo’s retirement(www.SIAjourneys.com) containing milestonesand records set over the years, historical photo-graphs and video footage, for example of theworld’s youngest B747 commander Peter Leo(now retired), including interviews with staffand customers.

OUTLOOK SPECIAL C R U I S I N G H E I G H T S M A R C H 2 0 1 2LAST PAGE


Adieu, sweet jumbo…

FROM THE FILES OF SINGAPORE AIRLINES: Glimpses of the arrival ceremony ofthe first Boeing 747 plane and the warm welcome it received from the airportauthorities and the public.

The SIA-B747saga began in

1973, whenengineers andtop executives

from the carriergathered atSeattle to

welcome theJumbo

Reg. No. DL(E) 01/5294/2012-14RNI No. DELENG/2006/16897

cruising heights

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