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Chapter: 4

Civil Aviation in India

The Indian Aviation Industry is among the world’s fastest growing

industries. It has undergone huge transformation following the

liberalization of the aviation industry in India. Once owned by the

Government, the aviation sector of India is now privately owned with full

service airways and affordable carriers. Almost 75% of the domestic

aviation sector consists of the private airlines. Earlier viewed as a costly

means of transportation, afforded by few, air travel is now cheap and can

be availed by many.

The aviation sector has become the most important segment in the

economic development of a nation. It plays a vital role in moving people or

products from one place to another, be it domestic or international,

especially when the distances involved are far. Stiff competition and

favorable initiatives of the Government of India added fuel to enlarge both

flights and fleets. Air Deccan was the premier airline, which offered low

tariff to the domestic as well as international destinations and created a

new landmark in aviation sector in India. Now, ordinary citizens were able

to easily access the aviation service from their respective air terminals. In

a highly competitive environment the provision of high quality services to

passengers is the core competitive advantage for an airline's profitability

and sustained growth. In the past decade, as the air transportation market

has become even more challenging, many airlines have turned to focus on

airline service quality to increase service satisfaction. Service quality

conditions influences a firm’s competitive advantage by retaining customer

patronage, which in turn results in increase in market share. Delivering

high-quality services to passengers is essential for airline survival, so

airlines need to understand what passengers expect from them.

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History of Indian Civil Aviation:

Over 100 years old, the Indian aviation sector has earned the

distinction of being the ninth largest in the world. Today’s giant leaps

though have come from a small step taken by Henry Piquet on February

18,1911, when he flew his Humber bi-plane six miles from Allahabad to

Naini junction carrying only mail and introduced the concept of air travel in

India. For the next 21 years, the country witnessed such flights that flew

off and on without any timetable.

They began making way for schedule air travel- that operate as per

a timetable-when 25 year old Jehangir Ratanji Dadabhoy Tata got the first

pilot license issued in India on February 10,1929. In July 1932, business

tycoon J.R.D., who would go on to be hailed as the Father of Indian Civil

Aviation, established the aviation department in Tata Sons. Soon to be

called Tata Airlines, it planned the first schedule flight in India- a mail

service on the Karachi-Ahmadabad-Bombay-Bellary-Madras, route to be

the India connection to Imperial Airways’ London-Karachi flight.

On October 15, 1932, J.R.D. operated a tiny single-engine de

Havilland Puss Moth (VT-ADN) from Drigh Road Airport, Karachi, to

Bombay’s Juhu airport via Ahmadabad. He landed in what is now Mumbai

with mail that had left London exactly a week back. Former British Royal

Air Force pilot Neville Vintcent took over from J.R.D. in Bombay and

operated the rest of the route, arriving in Madras (now Chennai) a day

later. The first west- bound flight –with just mail- from India left Madras on

October 17, 1932. The same year, Indian aviation witnessed another

landmark in aviation as Urmila K. Parekh became the first Indian woman

to obtain a pilot’s license. This milestone marked the beginning of a

radically new chapter in the nation’s life, as after Independence many

women successfully made their careers in aviation, something previously

considered too ‘adventurous’ for aspiring women pilots. Prem Mathur

became the first woman to obtain a commercial pilot’s license in 1947 and

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fly domestic airlines. Other noted women pioneers in the industry include

Chanda Sawant Budhabhatti – Founder/President of Indian Women Pilots’

Association, 1967 and Durba Banerjee – the first woman pilot to fly with

Indian Airlines in 1956. While the construction of civil airports in India had

begun as early as 1924, the country’s first aircraft rolled out in July 1941 –

a Harlow trainer which was followed by a ten-seater glider designed by Dr.

V.M.Ghatage at Hindustan Aeronautics Limited (HAL). Meanwhile, Tata

Airlines continued to add both aircraft and services, and in 1946 was

renamed as Air India Ltd., two years later establishing its international

division which began a weekly Bombay-Cairo-Geneva-London flight using

the Constellation VT-CQP “Malabar princess”.

In August 1953, the government nationalised Air India which the

story of Indian Aviation revolved around AI-IA for almost four decades

during which the airline achieved other goalposts like becoming an all-jet-

engine airliner with big planes like the Boeing 747s in its fleet. The ‘90s

saw the launch of several important players including Jet Airways. Many of

them began as air taxis but slowly became schedule commercial airlines.

But only Jet airways of the first crop of major private Indian carriers

survived. The second wave of private airlines came in from 2003 when

India woke up to the concept of low cost airlines. With the advent of low-

cost carriers, Indian flyers took to the sky more frequently and with utmost

enthusiasm. India has seen passenger traffic increase at an extraordinary

speed in the past decade. In 2017, the country is expected to witness

passenger traffic of 327 million. As a result, airports sprouted in non-

traditional places and destinations that were earlier labelled countryside

are now becoming gateways to tourist spots around the country.

Over the next 10 years, several Greenfield (all new) airports are

expected to come up, complementing existing airports and relieving the

burden on airports which see heavy traffic. Renovating old airports is

another part of this refurbishment of the Indian airport sector. With

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sophisticated terminals, state-of-the-art check-in counters, better baggage

handling and increase in passenger conveniences, Indian airports are

about to receive more than just a fresh coat of paint. The focus is on

building sustainable airports that can withstand the test of time, without

becoming redundant in a few years. Karnataka is one such state where

four new airports are slated to come up in the next few years, with two – in

Shimoga and Gulbarga- opening to passengers at the end of 2012 in a bid

to push tourism in these areas.

The new Mopa airport in north Goa and a brand new Greenfield

airport in Maharashtra’s Sindhudurg will ease the heavy foreign passenger

traffic descending on the shores of India’s sunshine state every holiday

season. North east states, that were previously sparsely-connected should

also see better connectivity in the coming few years. Two airports, one

each at Kohima in Nagaland and Itanagar at Arunachal Pradesh will be

developed. Durgapur, the steel city in northern West Bengal is also in the

process of getting a Greenfield airport that should relieve the busy Kolkata

airport. Airports such as Kolkata are getting a second wing with large scale

renovation taking place. Delhi, which was a stark example of previously ill-

equipped airports, is now one of the best in the world, with the brilliant new

terminal 3 becoming the face of air travel in India. Many of the world’s best

airports lack the glitz and fitments that the new Indira Gandhi International

Airport sports. The Hyderabad airport was also developed by the GMR

Group that constructed the Delhi airport and is one of the best in the

country, if not the world. Similarly, Mumbai, Bengaluru and Kochi have

also gone the private route as Indian airports are finally shaking off the

third-world tag.

Aviation experts believe that airports have ceased to be just ports of

entry and exits but are playing an important and direct role in the

economy. Delhi is already in this path with a dedicated metro line, while

Mumbai’s International airport is slated to have a commercial centre to

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rival the best in the world. The future of Indian aviation looks promising,

even as globally the industry is going through a watershed moment of

austerity. From the days of sporadic airmail service, the sector has grown

so much that there’s a dedicated India aviation event- organised by FICCI

in Hyderabad. It is held once in every two years. That is the biggest

international exhibition of its kind in India. It promotes the causes and

interests of civil aviation while showcasing all aspects of aviation from

aircraft to in-flight products. With airports, connectivity and new avenues

sprouting up across the country, responsible, healthy and well managed

airlines will be the key to the success of Indian aviation. India has great

potential to grow given its population, its growing economy and need for

connectivity across the country. It has been hundred years of Indian

aviation and with the future looking good in terms of airports and

connectivity, the story of flying in India is most certainly pointing towards

realizing the projections of being one of the top three players in the world

by the year 2020.

Role of Air Transport in the Economy:

In an increasingly globalised economy, air transport is a vital

element of the country’s transport infrastructure. The impact of civil

aviation as a sector on the general economic activity has been studied

systematically and documented for some of the Western developed

countries. By itself, the Civil Aviation Sector contributes significantly to the

process of development by generating employment opportunities directly

and indirectly besides facilitating enhancement of productivity and

efficiency in the movement of goods and services. Civil Aviation is a key

infrastructure sector that facilitates the growth of business, trade and

tourism, with significant multiplier effects across the economy.

Doubtlessly, air transport has contributed to the rapid growth in

India’s international trade in recent decades by offering a reliable and

faster mode of transport services to move products and personnel across

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long distances. Therefore, sustaining a viable aviation industry is vital if

the economy is to reap the full benefits of the future growth in foreign trade

and investment. Industries that rely most heavily on air transport for their

international freight shipments include high growth sectors such as

pharmaceuticals, office equipment and electronic equipment sectors

besides those that have high value to weight products. Thus, it has been

observed that high growth sectors in emerging markets are heavily

dependent on the services of the aviation industry. Increased air

connectivity enables manufacturing enterprises to exploit the speed and

reliability of air transport to ship components across firms that are based in

different and distant locations thereby minimizing the inventory cost.

Countries with higher connectivity in general are stated to be more

successful at attracting Foreign Direct Investment. Role of air transport is

crucial for the development of Tourism industry. Tourism makes a large

and growing contribution to the Indian economy. The Tourism Satellite

Accounting developed for India for the year 2002-03 confirms tourism as

one of the largest sectors in the economy. Tourism value added accounts

for 2.78 percent of the GDP in terms the direct contribution; when indirect

effects are also accounted for, the share of tourism in the GDP is 5.83

percent.

In absolute terms, tourism related jobs are estimated to be in the

region of about 21 million. Employment in the Indian tourism industry is

dependent on the aviation industry since 90 per cent of foreign visitors out

of 5.11 million arrived by air in the year 2009. Global evidences suggest

that in U.S.A. civil aviation activity within the overall economy was

responsible for generating 12 million jobs, USD 1.3 trillion in total

economic activity and 5.6 percent of GDP in 2009. In UK, the contribution

of aviation sector to its GDP is said to be to the tune of £53.3 billion (3.8

per cent) to its GDP. The most important contribution aviation makes to

the economy is through its catalytic impact on the performance of other

industries and as a facilitator of their growth. Recent research by Oxford

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Economics reveals that the direct contribution of aviation sector in India to

its GDP is 0.5 per cent for the year 2009. If the catalytic impact of Civil

Aviation is included, the contribution to GDP is 1.5 per cent. Total number

persons employed in Civil Aviation sector is estimated to be 1.5 million

and if we include the catalytic impact then it is 10 million persons. Globally

for every $ 100 of output produced and every 100 jobs generated by air

transport in the economy trigger additional demand of approximately $325

worth of output and 610 jobs in other industries. During the year 2010-11,

air transport carried 54 million domestic passengers and 37 million

International passengers besides transporting 1.7 million metric tonnes of

domestic and international cargo. Air transport is crucial for the distribution

of high value to weight products and also for goods that are to be

transported speedily.

Civil Aviation sector makes a substantial contribution to public

finances. These include, the Service tax paid by air passengers,

corporation tax paid by airline companies, airport operators and other

ground support service enterprises, MRO (Maintenance Repair and

Overhaul) firms and income tax paid by their respective employees,

besides the revenue collected through taxes on fuel and equipments.

Thus, the economic foot-print of the Civil Aviation sector which reflects the

value addition and the direct and indirect employment created by activities

of the sector appear to be much deeper and wider in terms of its multiplier

effect.

The size of a particular industry in a given year is assessed by the

total income generated by enterprises in that industry and the employment

generated by the said industry. These are generally reckoned to be the

key parameters to evaluate the relative importance of a sector in an

economy. It is with this objective, an attempt has been made to estimate

the size of the civil aviation sector in India based on available information

as given in Table 4.1. From the table it is evident that scheduled airlines in

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India contribute to over 50 per cent of the gross income of the Civil

Aviation sector in India. While income of the scheduled carriers operating

in India does include income from their global operations, income of the

international airlines having operations in India is not part of the income

shown under scheduled airlines, which according to industry sources

would be in the region of about Rs.20,000 crores for 2010-11. If this is

taken into account then the size of airline industry alone would exceed Rs.

60,000 crores. It is evident that contribution of Airline industry to the total

sector revenue is over 50 per cent. Since, the airlines are the largest

contributor to the sector in terms of revenue; their viability is of paramount

importance for the growth of the sector.

Table: 4.1

Estimated Gross Revenue Earned by Sub-Sectors of Indian Civil Aviation Sector

Sub-Sectors Gross Income (Rs. Crores)

Airlines Scheduled 43,352 Non-Scheduled 1,528 Total 44,880 Airports AAI 5,734 Private 3,805 Total 9,539 Maintenance Repair and Overhaul (MRO) 4,000

Air cargo and Express Industry 19,000 Ground handling 2,000 Aviation Academies 325

Total 79,744

Source: Respective Annual reports, Industry Sources; Analysis: MoCA

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Indian Aviation Market:

In the last two decades, the fastest growth in overall air traffic in

India was witnessed during 2004-05 to 2010-11 at the rate of 16.5 per cent

with domestic traffic clocking a CAGR of 18.5 per cent and International

traffic at 14 per cent. This growth is much higher than the growth

witnessed during the period 1995-96 to 2003-04. Also, it is evident that the

domestic traffic grew more than three times and the international traffic to

and from India more than doubled in the last 7 years. Performance of

domestic air traffic evaluated for a longer time frame of twenty years (from

1990-91 to 2010-11) suggests that it grew at an annual average rate of

10.4 per cent. During the same period, international passenger traffic grew

at 9.4 per cent and total passenger traffic at 9.9 per cent (Table 4.2).

Table: 4.2

Passenger Traffic Carried by Scheduled Carriers Year Passenger Carried (in millions)

Domestic International Total

1990-91 7.5 6.3 13.8

1995-96 12.2 9.4 21.6

2003-04 15.7 14.6 30.3

2010-11 53.9 37.9 91.8

Compounded Annual Growth Rate (per cent)

1990-91 to 2010-11 10.4 9.4 9.9

1995-96 to 2003-04 3.2 5.7 4.3

2004-05 to 2010-11 18.5 14 16.5

1995-96 to 2010-11 10.4 9.7 10.1

Source: DGCA, AAI; Analysis: MoCA

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Underperformance of international passenger traffic as compared to

domestic traffic over the last twenty years stands established in earlier part

of analysis of this section. Contrary to the popular belief, share of Indian

Carriers in International market has actually increased since the

liberalization of market after years of stagnation in a protected

environment. Trend observed with respect to International Passengers

carried by scheduled carriers to and from India is given in Table 4.3.

Scheduled Carriers of India have made some gains in total international

passenger traffic from/ to India during the last 20 years. For instance,

International traffic handled by Indian Carriers increased from 31.7 per

cent in 1990-91 to 34.6 per cent in 2009-10.

Table: 4.3

Market Share of International Passengers Scheduled Carriers

India Foreign Carriers

1990-91 31.7 68.3 1994-95 29.3 70.7 2004-05 28.9 71.1 2009-10 34.6 65.4

Source: ICAO. However, given the vibrant domestic air traffic market and the Indian

economy being one of the most attractive investment destinations of the

world, Indian Carriers could not make substantial inroads into the

international market for air traffic. The low level of utilization of

international traffic rights by Indian Carriers, restrictions on entry of Indian

Carriers to operate on International routes and certain inherent cost

disadvantages are often cited as reasons for slow growth in the market

share of International Passenger traffic market for Indian Carriers. Another

aspect of International traffic to and from India pertains to trend in foreign

tourist arrivals in India. Table 4.4 traces the trends in Foreign Tourist

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Arrivals (FTAs) in India and some other countries since 1995. It is

pertinent to note that FTAs in India is almost stagnant during the latter half

the previous decade signifying the fact that inbound tourism potential that

exists for India in its cultural diversity and a vast array of attractions have

not been tapped at all during the last few years. The stagnant inbound

tourism is also attributed to protectionist market access policy regime.

Table: 4.4

Foreign Tourist Arrivals in India Years China Singapore Indonesia India Brazil Vietnam

1995 20.0 6.1 4.3 2.1 2.0 1.4

1996 22.8 6.1 5.0 2.3 2.7 1.6

1997 23.8 5.9 5.2 2.4 2.9 1.7

1998 25.1 5.1 4.6 2.4 4.8 1.5

1999 27.1 5.6 4.7 2.5 5.1 1.8

2000 31.2 6.1 5.1 2.7 5.3 2.1

2001 33.2 5.9 5.2 2.5 4.8 2.3

2002 36.8 5.9 5.0 2.4 3.8 2.6

2003 33.0 4.7 4.5 2.7 4.1 2.4

2004 41.8 6.6 5.3 3.5 4.8 2.9

2005 46.8 7.1 5.0 3.9 5.4 3.5

2006 49.9 7.6 4.9 4.5 5.0 3.6

2007 54.7 8.0 5.5 5.1 5.0 4.2

2008 53.1 7.8 6.2 5.4 5.1 4.3

2009 50.9 7.5 6.3 5.2 4.8 3.8

2010 Not Available

9.2 Not Available

5.6 5.2 5.1

Source: World Bank

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FTAs in countries like Indonesia, Singapore and China are much

higher than FTAs in India. Particularly it is to be noted that FTAs in India is

about one-tenth of that in China. In order that India’s FTAs is increased, it

is essential that the concerned Ministries and Departments like Ministry of

Civil Aviation, Ministry of Tourism, Ministry of Culture and State

governments work in tandem. Therefore, enhancement of international air

traffic to and from India could come from both the sides. A substantial

reform in the market access arena could perhaps change the situation. For

instance entry of India based low cost carriers between India and Middle

East and between India and South East Asian countries could boost

international traffic as services in this region have become more

convenient and less expensive at a time when disposable incomes of

people in India are on the rise.

The share of Inbound and Outbound passengers has approximately

been in the same proportion viz. 50 per cent each. However, experience in

the last seven years show that the inbound passenger traffic is growing at

a faster rate as may be seen in Table 4.5.

Table: 4.5

Growth of Outbound and Inbound Passengers (In Millions)

Year Outbound (Embarked) Inbound (Disembarked)

1995-96 5.4 5.2

2003-04 8.1 7.6

2010-11 18.7 18.3

Compounded Annual Growth Rate ( per cent)

1995-96 to 2010-11 8.60 per cent 8.80 per cent

1995-96 to 2003-04 5.10 per cent 4.90 per cent

2003-04 to 2010-11 12.70 per cent 13.40 per cent

Source: DGCA

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Key Drivers of Growth of Indian Aviation:

Growth rate of the economy has been steadily rising. For instance,

in the period 1990-91 to 2003-04, the CAGR of India’s GDP works out to

5.7 per cent which then rose to 8.6 per cent during 2004-05 to 2010-11.

The growing economic activity resulted in greater business travel by

professionals and greater leisure travel by individuals. These income

groups drive the consumption pattern in India and are primarily

concentrated in urban areas. NCAER analysis reveals that the middle

income group population in 2010 stood at 160 million individuals i.e. 13.3

per cent of the total population, which is expected to rise to 547 million in

2025 (i.e. 37.2 per cent of the total population).

About 62 per cent of the population is in the working age group of

15-60 years and this proportion is set to increase in future indicating a

larger employee base, greater business travel and greater economic

activity. Mckinsey Global Institute’s projections state that India’s urban

population will be 590 million by 2030 i.e. about 40 percent of the total

population of India. The number of million plus cities will increase to 68 by

2030 of which 13 cities will have more than 4 million and six cities will

have more than 10 million persons.

Low Cost Carrier (LCC) model which made air travel affordable for

common man got established firmly in the domestic market since 2004.

This stimulated the pent up demand for air travel. LCCs along with the

LCC brand of Full Service Carriers (FSCs) constituted 63.3 per cent of the

market share in 2009. The domestic traffic is rapidly shifting towards the

LCC model. Market sources suggest that this has crossed 67 per cent

during 2011-12. Also, the LCCs are reported to have displayed strong

operational performance immediately after the recovery witnessed in

2010. This leads us to believe that Low Cost Operations in a price

sensitive market like India appear to be a more sustainable business

model.

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Opening up of the airport infrastructure to private sector participation

fuelled the growth of the air traffic in India. Total investment made by

private airport operators in the last five years was to the tune of Rs 30,000

crores spread across Greenfield development of Hyderabad and

Bengaluru international airports and modernization of Delhi and Mumbai

international airports. Airports Authority of India (AAI) continued its

unparalleled role in creating air connectivity across the nation, incurring an

expenditure of around Rs 12,500 crores during the 11th Plan period.

Rapidly expanding air transport network aided by massive investments in

the airport infrastructure could be cited as one of the key reasons for the

surge in air passenger traffic in India.

In line with the trend observed in growth of India’s GDP, the tourism

sector has displayed stellar performance during the last decade. During

the period from 2001 to 2010, the average annual growth rate of foreign

tourist arrivals in to India and Indian national departures from India grew

by 9.2 per cent and 11.5 per cent respectively. Domestic tourism was not

to be left behind. Domestic Tourist Visits within India stood at 740.2 million

for the year 2010. In fact the average annual growth rate of Domestic

Tourist visits within India for the decade ending 2010 is estimated to be

13.5 per cent. The number of foreign tourist arrivals in India stood at 5.6

million in the year 2010 as against 3.46 million in 2004 and 2.54 million in

2001. Similarly, the number of Indian National departures from India stood

at 12.1 million in 2010 as against 6.21 million in 2004 and 4.56 million in

2001. In areas with difficult terrain, air transport offers the fastest mode of

connectivity to remote and inaccessible regions. Given the thrust of the

Government of India to enhance connectivity in remote and inaccessible

regions of the country and concerted efforts of some State governments in

this respect, there is a strong likelihood of demand emanating from these

areas in future.

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The air traffic density can be measured by linking urban per capita

income with air passengers. Taking 1000 passengers per million urban

capita, a recent study has arrived at a comparative picture. Air traffic

density in India using this measure is very low at 72 as compared to China

(282), which is 4 times higher; Brazil (231), which is 3 times higher;

Malaysia (1225) is 17 times higher, U.S.A. (2896) is 40 times higher and

Sri Lanka (530), which is 7 times higher. This indicates the untapped

market potential given the projected burgeoning young population and

rising disposable income levels in future.

Greater economic activity and the consequent greater integration of

businesses globally would mean greater business travelers across

national boundaries. Also, the growing trend of outbound Mergers and

Acquisitions (M & A) i.e. Indian firms acquiring International firms in order

to capture markets and resources abroad, where the M & A transaction

value for the year 2010 touched almost $ 50 billion and is set to grow

further in future implies greater business related travel.

Global air traffic is seen shifting to Asia Pacific region during the last

few years. This is on account of the slowdown in Europe and North

America. Within the Asia Pacific region China and India are the two fastest

growing economies and they are becoming the epicenter of supply and

distribution. Global air traffic Forecasts for 2030 in this context also point

to that direction. Traffic share of Asia- Pacific in the global traffic are likely

to move up and on the contrary traffic share of North America and Europe

are set to decline correspondingly.

Open Sky Agreements between nations forge greater competition in

the International air travel segment. Increasingly it is recognized that

Nation States need to evolve viable mechanism by which they all stand to

achieve trade gains and efficiency in international market access in as far

as Air traffic rights are concerned. That is yet to happen. Five Indian

Carriers out of six have now started international operations. It is therefore

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expected that such reforms in market access arrangements as and when it

happens will potentially enhance traffic to and from India. Further,

deregulation of the international air traffic markets would enable the LCCs

to capitalize the opportunities of newer markets first and enhance growth

of international traffic.

India’s impressive growth in international and domestic trade over

past few years has augured well for the air-cargo industry in India. The

entry of leading private air-cargo companies has brought in a wave of

increasing automation, mechanization and process improvement initiatives

at major air-cargo terminals in the country. Such investments in air-cargo

handling at key airports such as Delhi, Mumbai, Bengaluru, Hyderabad,

etc. are expected to yield higher air-cargo throughput and improved

service levels. The current share of air-cargo compared to other modes of

cargo-transportation is fairly low in India. The potential for air-cargo growth

in India can be gauged from the fact that some of the global airports such

as Hong Kong, Dubai and Incheon (Seoul) handle more cargo volume

than all Indian airports put together. Trans-shipment at Indian airports is

currently negligible. Major bottlenecks are absence of dedicated

transshipment infrastructure at airports and lack of clarity on the trans-

shipment Customs procedures.

Air Traffic Forecast for Indian Aviation:

Investment decisions of enterprises are generally guided by the

industry-wide forecasts. Entrepreneurs on the airport infrastructure side

need this guidance for planning their investment as these are long

gestation projects. Airline industry looks up to air traffic forecast for

preparation of fleet acquisition plan and capacity deployment planning. For

instance, unplanned and unbridled growth in capacity deployment by

airline industry can potentially lead to market distortions in the form of

excess capacity. Similarly, a number of industries engaged in the provision

of ancillary aviation services like ground handling services, Cargo

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handlers, MRO service providers, aircraft manufacturers and training

academies in the aviation sector are all dependent on forecast of air traffic,

which is the core business around which every other activity revolves.

Development of Human Resources by establishing education and

training activities to cater to the needs of the industry is a case in point as

it involves a huge time lag in making available trained and skilled

personnel for the industry. Non availability of skilled personnel in the

relevant categories would not only impact the efficiency but also raises the

employee cost to the airline and airport industry. Planners and policy

makers are interested in forecasting air traffic to review the developments

in the sector and to understand the likely future growth of the sector for

over all transport planning for the country and its implications for safety

and security as well. The capital-intensive nature of the Aviation industry

necessitates that the airline companies are more cost effective in their

operations and undertake efficient and effective planning. This would

require appropriate Air Traffic forecast which would give the probable

picture of the growth scenario to investors both current and potential.

Thus, decisions like up-gradation of the existing terminals, building of new

terminals, development of green field airports, installation/replacement of

terminal and CNS/ATS equipments, fleet expansion and man power

planning etc. require a clear and accurate idea about the future business

prospects in the industry. Effective air traffic forecast viz., passengers and

cargo help in taking strategic decisions and efficient resource allocation.

Domestic air traffic that would be carried by Scheduled Carriers in

India in 2020-2021 is set to cross 159 million passengers as against 54

million in 2010-11 suggesting a growth of approximately three times the

present traffic in ten years. In fact the number of domestic passengers

carried grew 3.9 times during the previous decade i.e. 2000-01 to 2010-

11. International passengers to and from India by 2020-21 will be 92

million implying a growth of about 2.4 times the traffic of 38 million in 2010-

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11. The decade 2000-01 to 2010-11 witnessed a growth of 2.7 times in

international segment. Forecast for 2031-32 suggests that domestic air

passengers to be carried in India will be 448 million. For the same year

international passengers will be 237 million (excluding transshipment

passengers). GDP elasticity of 1.5 in case of domestic passengers and

global income elasticity of 3.1 in case of international passengers is

applied to derive the numbers for domestic and international segments of

air traffic. Domestic passenger traffic is relatively less sensitive to

domestic GDP as compared to international passenger traffic to global

GDP. By the year 2020-21, the domestic Non-Scheduled Passenger

segment is expected to witness 3.2 million passengers with a CAGR of 7.2

per cent from the year 2010-11. Today business jets are no longer seen

as a luxury but as a tool for enhancing productivity. Tourism is another key

growth driver for general aviation in India. The helicopter market in India is

equally promising, with growing requirements in tourism, mining, corporate

travel, air ambulance, homeland security etc. In the next 20 year period

i.e. by 2031-32 the domestic Non-Scheduled passenger segment is

expected to witness 4 million passengers at a CAGR of 6.6 per cent from

the year 2010-11.

Review of Airport Sector Performance:

The Indian Airport sector has been one of the most dynamic

spheres of investment in the last 7 years among infrastructure sectors.

This sector witnessed a shift from being completely government owned

sector to a PPP framework during this time. Due to airports’ inherent

nature of being highly capital intensive, it increasingly became difficult over

the period for the government to bring forth the necessary investment for

large scale modernization and expansion of airport infrastructure.

Therefore, private participation was encouraged with the implementation

of PPP policy framework. Airport Authority of India controls 125 airports in

the country of which 84 are operational. In addition to these, there are 6

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Joint Venture (JV) airports under the PPP framework and these are:

Mumbai, Delhi, Hyderabad, Benguluru, Nagpur and Cochin airports.

Further, there are 8 airports, which are either completely privately owned

or owned by State Governments and these are in Jamshedpur, Latur,

Lengpui, Mundra, Nanded, Baramati, Puttaparthy and Vidyanagar.

Passenger throughput at Indian airports during 2010-2011 is placed

at 144 million. Of which 106 Million or 74 per cent were domestic

passengers and the rest constituted international passengers. The

percentage of domestic passengers to the total passenger throughput at

Indian Airports has gone up from 68 per cent in 2004-05 to 74 per cent in

2010-11 implying faster growth of domestic as compared to international

passenger throughput. This trend is also reflected in the growth analysis

using CAGR. In terms of CAGR, the maximum growth has been witnessed

in the domestic segment in the last 6 years growing at 18 per cent

approximately (approx.) followed by the growth in International segment at

12 per cent approx.

Major airports have been defined as those airports which have or

are designed to have annual passenger throughput in excess of one and a

half million or any other airport as the Central Government, may by

notification specify as such. There are 15 Major Airports in India namely

Delhi, Mumbai, Chennai, Bengaluru, Kolkata, Hyderabad, Cochin,

Ahmadabad, Goa, Trivandrum, Guwahati, Jaipur, Calicut, Lucknow and

Pune. Some of them located in metropolitan cities are referred to as metro

airports namely Delhi, Mumbai, Hyderabad, Bengaluru, Chennai and

Kolkata. These 6 airports have the capacity to handle 78.6 per cent of the

total Indian passenger traffic handling capacity created in Indian airports.

Out of these, Delhi, Mumbai, Hyderabad and Bengaluru are JV airports

whereas Chennai and Kolkata are AAI airports. Out of all the metro

airports, Delhi has the highest capacity to handle passengers amounting

to 60 million passengers per annum, followed by Mumbai, Kolkata,

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Chennai, Hyderabad and Bengaluru in that order. Cumulatively, all these 6

metro airports have 78.6 per cent of the total passenger handling capacity

in India, the rest being with non-metro airports. The total capacity of all

these 6 metro airports is 160 million passengers. The passenger handling

capacity at all the 15 major airports taken together is 180 million

passengers which is approximately 89 per cent of the total capacity to

handle passengers at all Indian airports. Total capacity to handle

passengers at all Indian airports stood at 210 million passengers in 2010-

11.

The passengers handled are the highest at Delhi airport followed by

Mumbai, Chennai, Bengaluru, Kolkata and Hyderabad. This amounts to 70

per cent of the total passenger handled at Indian airports. Also, amongst

Metro airports, bulk of the passenger traffic is on the Delhi-Mumbai route

i.e. approximately 41 per cent of the total passenger traffic across all

Indian airports and 59 per cent of the total Metro airports traffic. Non-Metro

Airports in Tier II and Tier III cities constituting the remaining 30 per cent of

the passenger traffic are an untapped future market potential in terms of

high passenger traffic growth. The total passenger handled at these

airports in 2010-11 stood at 100 million passengers (70 per cent of the

total traffic handled at all Indian airports cumulatively). The traffic handled

at all the major airports (15) taken together stood at 124 million

passengers constituting 86 per cent of the total passenger traffic handled

by all Indian airports taken together. Total number of passenger

throughput at all Indian airports taken together was 143 million

passengers.

The terminal capacity utilization for all Metro airports stood at 62.5

per cent and for all Indian airports at 70.4 per cent reflecting that there is

still potential for passenger traffic growth at the non-metro airports for

effective capacity utilization. Table 4.6 gives a list of all major airport

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terminal capacity, passenger traffic handled and capacity utilization for the

year 2010-11.

Table: 4.6

Annual Terminal Capacity and Passengers S.

No. Major Airports Annual

Capacity (Million)

Passenger Traffic Handled

(Million)

Capacity Utilization (per cent)

1 Mumbai 29.07 29 100 per cent 2 Delhi 60 29.94 50 per cent 3 Chennai 23 12.05 52 per cent 4 Bangalore 11.5 11.59 101 per cent 5 Kolkata 24.1 9.63 40 per cent 6 Hyderabad 12 7.60 63 per cent 7 Cochin 5 4.34 87 per cent 8 Ahmadabad 4.02 4.04 101 per cent 9 Goa 3.23 3.08 95 per cent

10 Trivandrum 1.79 2.53 141 per cent 11 Guwahati 1.15 1.93 168 per cent 12 Jaipur 1.16 1.66 143 per cent 13 Calicut 1.85 2.06 111 per cent 14 Lucknow 1.21 1.58 130 per cent 15 Pune 1.12 2.81 251 per cent

Source: AAI; Analysis: MoCA

AAI undertook up gradation and modernization of 35 non-metro

airports in India at an estimated expenditure of Rs 4,500 crores. Of these

35 airports, 26 have already been developed while remaining is likely to be

completed by end of financial year 2011-12. These non-metro airports are

important from the point of enhancing regional connectivity and

development of regional hubs. Some of them are major tourist destinations

and business hubs as well. Government of India has accorded in principle

approval for 15 Greenfield airports which are at various stages of

development, while several others are under due consideration. These

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airports are expected to improve connectivity with underserved and

unserved regions of India and air in propelling development in Tier 2 and

tier 3 cities. In order to enhance regional air connectivity in the Northeast,

AAI has almost completed the construction of a Greenfield airport at

Pakyong (Sikkim) at an estimated cost of Rs. 309 crores while two other

airports Cheithu (Nagaland) and Itanagar (Arunachal Pradesh) are at

various stages of development. The other Greenfield airports are given in

Table 4.7. The Greenfield airports are mostly being set up via PPP route

wherein a Joint Venture is established between private promoters and

State Govt. promoted company or State govt. or AAI.

Table: 4.7 List of Approved Greenfield Airports

Airport Airport Navi Mumbai, Sindhudurg, Shirdi (Maharashtra)

Mopa (Goa)

Kushinagar (Uttar Pradesh)

Dabra (Madhya Pradesh)

Kannur (Kerala)

Paladi Ram Singhpur, Saras (Rajasthan)

Bijapaur,Simoga, Hassan, Gulbarga (Karnataka)

Karaikal (Puducherry)

Durgapur Aerotropolis (West Bengal)

Ludhiana Aerotropolis (Punjab)

Source: MoCA

Airport Infrastructure:

Until recently, development, maintenance and ownership of airport

facilities in the country was vested with the Airports Authority of India. With

the opening up of the airport sector for private participation, six airports are

under the PPP model and these are Hyderabad, Bangalore Delhi,

Mumbai, Cochin and Nagpur. Currently, 60 per cent of air traffic is handled

by airports under PPP mode and the rest by AAI airports. Therefore any

discussion on investment requirements for airport infrastructure should

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take in to account the position in respect of both AAI and JV airports from

the point of view of ownership. Another important component of the airport

relates to air side infrastructure which includes runways, taxiways and

apron. In all the airports of the country, AAI continues to provide Air

Navigation Services which includes Communication, Navigation, and

surveillance and air traffic management services. Signs of capacity

shortages have already reemerged in four out of five metro airports in the

country. It is pertinent to note that by the financial year ending 2012

beginning from 2007, Private Airport Operators would have invested about

US $ 7 billion including third party investment towards infrastructure for

providing ancillary aviation services. Budgetary support from Government

for investment in development of airports in remote areas and regions

which need special consideration from socio economic and connectivity

point of view for AAI will be part of the requirements for investment.

Regional airport development to cater to the emerging air traffic in Tier II

and Tier III Towns may initially require budgetary support during the initial

period of its operations and until such time the operations become viable.

Even at present, there are only 12-13 airports of AAI that are making profit

with current level of operations. Thus, growth in the passenger and cargo

traffic requires significant investments in terms of construction of new

airports, expansion and modernization of existing airports, improvement in

connecting infrastructure (road, metro, sea link, etc.) and better airspace

management. Estimates received from AAI and the industry indicate that

the Indian airports would require an investment of about Rs 67,500 crores

during the 12th Plan of which around Rs 50,000 crores is likely to be

contributed by the private sector.

The compounded annual growth rate of aircraft induction in India

between years 1997-98 to 2010-11 was 10.7 per cent and 13.7 per cent

from 2004-05 to 2010-11. A steep rise can be observed in aircraft

induction in years during 2005-06 to 2007-08. The average year on year

growth rate of aircraft induction during this period stood at 21.5 per cent.

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The high rate of aircraft induction during the period could be attributed to

rising demand for air travel on account of GDP growth rate of India

(Average growth rate GDP was 9.5 per cent during the same period) and

introduction of LCC in Indian skies. Air travel worldwide witnessed

diminished demand during 2007-08 on account of global financial crises

and high crude oil prices. India was no exception to it and was badly

affected and Indian carriers adopted different strategy to survive with the

unprecedented situation. Cyclicality of air travel demand makes it

vulnerable for demand- supply mis-match. Aircraft once inducted on

account of forecasted passenger traffic growth becomes liability for airlines

during lean demand period (Table 4.8).

Table: 4.8

Aircraft Ownership Pattern for Full Service Carriers In India During 2010

Airline Leased Owned Total Air India Limited 29 94 123

Jet Airways 58 33 91 Jet Lite 23 0 23

Kingfisher Airlines 63 3 66 Total 150 130 280

Source: World Air Transport Statistics- 2010, IATA

There are various methods of inducting aircraft viz. direct purchase,

finance leasing, operating lease etc. with various degrees of benefits/

liability attached to each of the modes of acquisition. It represents the

pattern of ownership for three Full Service Carriers in India for year 2010.

While Air India chose to follow the direct purchase model, Kingfisher

adopted the model of Lease for inducting aircraft for operations. Legacy

factors also play a major role in such decisions. In the case of LCCs, the

popular modes of air craft induction in India is leasing and not direct

purchase which is evident from Table 4.9.

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Table: 4.9

Pattern Of Aircraft Ownership By LCC During 2010-11 Airlines Leased Owned Total

Indigo 33 5 38

Go Air 10 0 10

Spice Jet 27 0 27

Jet Lite 23 0 23

Source: CAPA; World Air Transport Statistics- 2010, IATA During financial year 2010-11 LCC accounted for nearly 70 per cent

of domestic passenger traffic market share. The leased mode of aircraft

induction is said to offer airlines the flexibility of rationalizing capacity with

demand in the short to medium term and keep a check on average aircraft

age. However, some industry analysts are of the view that this is not likely

to be a sustainable model in the long run. Therefore, it is difficult to predict

the likely model that may be relevant for Indian market in future.

FDI Policy for Airline Industry:

It may be recalled that basic rationale of opening up of certain

sectors to competition including participation of foreign investments has

been to cater to the enormous size of investments required for a growing

economy and the need to bring in cutting edge technology and the

associated best practices of the industry. There is a view that Airline

industry qualifies in all these respects listed above and therefore the need

to facilitate larger capital inflow from abroad into the country. Foreign

investment is not just a source of equity investment for developing

economies, it also brings with it considerable benefits viz: technology

transfer, management know-how, and access to international markets.

The mechanism of the relationship has been through inflow of investment

funds, infrastructure and technology transfers, enhancement of human

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capital, improvement in the quality of the factors of production, faster

growth of output and employment, increased productive efficiency,

consumer benefits and access to global markets. Presently, strategic

investment by airlines registered overseas is not permitted to invest in

Indian companies in the airline business. Relaxation of Ownership and

Control rules governing airline sector is expected to result in significant

benefits in terms of financing costs especially at a time when the industry

has launched itself in the path of higher trajectory of growth. More

importantly, costs of financing can become cheaper for the Airlines if there

is a freedom to access financial resources wherever it is cheaper rather

than having to source it from home market which may be higher, thus

adding to their financial woes.

It is noteworthy that during the initial phases of growth in a Capital

intensive industry such as this, the CAPEX to Sales ratio will be very high,

leaving very little scope for meeting the working capital requirements. The

rapidly changing air transport environment dictated by the global economic

fortunes is forcing airlines to seek structural adjustments in order to

survive. Developments in the early 1990s, including the bankruptcies and

mergers of airlines with heavy debt burdens, have prompted a re-

examination of the limits placed on foreign capital. Investment by foreign

airlines offers an alternative to the borrowing that has undermined the

financial health of some airlines. Therefore this should result in lower cost

of capital to airline industry particularly in developing country where the

cost of capital is much higher. It is relevant to note that in countries like

USA, which has large, flexible and matured capital markets, the need to

access overseas capital may be less critical as compared to emerging

markets. Therefore, comparison of India with those countries is misplaced.

Other sectors in the country including the sensitive sectors have long

before witnessed relaxations of ownership regulations in India. It has been

seen from the experience of other sectors in the Indian Economy that a

policy of liberalization results in acceleration of economic growth. Given

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the high cost debt environment prevailing in the country on account of

structural issues, it would be difficult if not impossible to raise these

resources at relatively on easy terms.

It was reported by CAPA in July 2010 that the three large airline

groups in India have a combined debt of approximately USD 13.5 Billion

with an annual interest burden of over USD 1Billion. For the financial year

2011-12, it is estimated that this would touch $20 Billion for the entire

airline industry. And they will require capital raising of a further USD 10-12

billion over the next 2-3 years to finance scheduled aircraft deliveries.

Because of the low equity base, raising additional capital by these

enterprises will be a challenging task. External Commercial Borrowings

(ECB) could become an important source of funds for the industries in

India particularly to Airline industry which are adversely affected by high

cost of loans in India. Relaxation of restrictions on ECB to Indian industries

should provide the much needed relief to them. This measure would be of

very high relevance at this juncture when cost of debt is prohibitively high

in India. Terms and conditions for accessing ECB should be reasonable

without imposing stringent norms during the difficult times such as the

current period.

Aircraft Utilization:

One of the key factors in the operating environment for airline

industry pertains to aircraft utilization. In the context of a growing market

such as India, this analysis could lead us to certain conclusions about the

efficiency of carriers in capacity planning and rational deployment to

maximize revenue which is crucial. As discussed earlier there is no scope

for flexibility in capacity adjustment in the short run in the airline industry.

Higher aircraft utilization helps in reducing overall operating cost and in

rationalizing capacity induction. Among Indian Carriers, low cost airlines

such as Spice Jet and Indigo are better placed than Full service Carriers

i.e. Jet Airways and Kingfisher Airlines in utilizing aircrafts. Aircraft

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utilization rate should be higher enough to maximize the yield and

minimize the cost. Indian Airlines is having the lowest rate of utilization

among the Carriers selected for comparison; its rate of utilization is almost

half of the utilization record of GOl Brazil and way behind even some of

the Indian Carriers like Spice Jet, Indigo and Jet Airways. It will be useful

to compare the two output parameters i.e. passenger load factor and

breakeven load factor for the airlines under study. A higher passenger

load factor implies that an airline was successful in selling more number of

available seats. However, higher passenger load factor does not always

result in to operating profit. Any addition to the PLF beyond the Break

Even is a net addition to the operating profit margins of the airline

enterprises. When Passenger load factor is higher than Break Even load

factor, the airline in question starts making profits. Evidently, most of the

LCCs in India were operating at Passenger load factor higher than that of

the Breakeven load factor during 2010-11. Among the Full Service

Carriers, Air India and Kingfisher Airlines have witnessed Breakeven load

factor much higher than the passenger load factor suggesting huge

losses. On the contrary, Full service carriers such as Emirates and

Singapore Airlines have reported Passenger load factors higher than

Break Even load factors. In the analysis that follows, factors behind the

operating economic environment of these and other airlines are analyzed.

Evolution of the Airline Industry in India:

The incorporation of the Air Corporation Act in 1953 led to the

nationalisation of the airline industry in India resulting in the establishment

of two air corporations viz, Air India International and Indian Airlines

Corporation and the assets of all the existing air companies were

transferred to these two organizations. The Act prohibited any person,

other than the corporations or their associates to operate any scheduled

air transport services from, to or across India. This in effect gave

monopoly powers to Indian Airlines and Air India on air transport in India.

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In 1986, private airlines were allowed to operate charter and non-

scheduled services under the Air Taxi Scheme which meant, inter-alia that

they could not publish time schedules, or issue tickets to passengers. This

was introduced to boost tourism, augment domestic air services and

boosted the much needed competition in the existing monopoly market. A

host of private players commenced operations as air taxi operators

including Air Sahara, Damania Airways, East-West Airlines, Jet Airways,

Modiluft and NEPC Airlines. With effect from 1st March 1994, the Air

Corporation Act was repealed and the air transport sector in India was

opened to private players subject to the fulfillment of statutory

requirements for operation of scheduled services. While six operators

were granted license only. Jet and Air Sahara were able to start their

services. In 1997, steps were taken to further remove the barriers to entry

and exit from the sector. There was now only a pre-entry scrutiny of

applications to verify the financial soundness, maintenance, security and

safety aspects of operations and human resources development proposed

to be undertaken by the applicant. The choice of the aircraft type and size

was also left to the operator. By 1997, only 4 operators that started

operations following the deregulation continued to operate namely Jet

Airways, Air Sahara, Jagson and Modiluft.

The year 2003-04 is a watershed year in the history of civil aviation

in India marked by the entry of low cost carriers. In August 2003, India

witnessed the advent of its first low cost carrier (no frills) Air Deccan, to

enter the domestic aviation industry bringing in competition to the existing

highly concentrated airline industry with players like Indian Airlines, Air

Sahara and Jet Airways. This changed the competitive landscape of the

industry. Since then, many other Low Cost Carriers (LCC) have entered

the market. In 2005-06, Kingfisher, a full service carrier and 3 LCCs

namely Go Air, Paramount and Spice Jet began their operations. Another

LCC, Indigo Airlines, entered the market in 2006-07. The entry of LCC or

‘no-frill’ model into the airline market changed the landscape of

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competition in the market significantly and air travel became gradually

more affordable resulting in rapid growth in passenger traffic. This model

brought with it newer pricing strategy such as Advance Purchase Fare that

resulted in discounted fares, promotional offers and introduction of flights

to newer destinations. The co-existence of full service carriers (FSC) and

low cost carriers (LCC) has also given the consumer a wide choice of

service in the market. However, this period also witnessed major corporate

restructuring with three significant mergers taking place in 2007-08

between Air India and Indian Airlines; Kingfisher and Air Deccan; and Jet

Airways and Air Sahara. The growing LCC market share in the period

2007-2011 eventually forced the FSCs to take note of the changing

dynamics of the Indian domestic Airline industry. The FSCs subsequently

introduced their own low cost model. In 2011-12 it has been observed that

the combined market share of all the LCCs including the low cost arm of

the FSC is approximately 70 per cent.

Civil Aviation Policy in India:

In the context of a multiplicity of airlines, airport operators (including

private sector), and the possibility of oligopolistic practices, there is a need

for an autonomous regulatory authority which could work as a watchdog,

as well as a facilitator for the sector, prescribe and enforce minimum

standards for all agencies, settle disputes with regard to abuse of

monopoly and ensure level playing field for all agencies. The CAA was

commissioned to maintain a competitive civil aviation environment which

ensures safety and security in accordance with international standards,

promotes efficient, cost-effective and orderly growth of air transport and

contributes to social and economic development of the country.

Strict national civil aviation security programme to safeguard civil

aviation operations against acts of unlawful interference have to be

established through regulations, practices and procedures, which take

account of the safety, regularity and efficiency of flights. A good safety

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record is a judgment of past performance but does not guarantee the

future, although it is a useful indicator. While pilot error is said to be on the

decline, factors of fatigue, weather, congestion and automated systems

have complicated safety. Airline operators, pilots, mechanics, flight

attendants, government regulators and makers all have a stake in making

aviation as safe as possible. The International Air Transport Association

(IATA), the International Civil Aviation Organization (ICAO), manufacturers

and others bodies cooperate in this aim. As world air traffic is expected to

double or more by 2020, the accident rate must be reduced in order to

avoid major accidents occurring more frequently around the globe.

Private sector participation is encouraged in existing maintenance

infrastructure of Indian Airlines and Air India like Jet Engine Overhaul

Complex (JEOC) and new maintenance facilities including engine

overhaul and repairs with up to 100 per cent foreign equity. Indian Airlines

has major maintenance facilities for all the types of aircraft in IAL fleet i.e.

Airbus-300, Airbus-320, Boeing-737 and Dornier-228. The Engineering

Department is responsible for maintenance of aircraft and is answerable to

Director General of Civil Aviation (DGCA) in maintaining the Quality

Control. The Maintenance of the aircraft is carried out at four major bases

located at Delhi, Mumbai, Kolkata and Hyderabad. Sahara also has its

own NDT Shops, wheels and brake assembly shop, battery charging

shop, avionics shop and seat repair shop. It is the only private domestic

airline to have its own hangar for aircraft maintenance. It is also the only

private domestic airline to have self maintenance capability. Air Deccan,

Bangalore-based airline, has decided to set up its engineering and

maintenance facility for Airbus-320 operations, basing two of a fleet of 11

Airbus jets here. They have also sought land from the Airports Authority of

India to build an exclusive hangar to carry out 300 and 500-hour checks,

apart from C-Checks and line maintenance.

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Airport Authority of India was set up on April 1,1995 by

amalgamating the International Airport Authority of India and the National

Airport Authority of India, the Airport Authority of India was to handle all

matters relating to infrastructure for civil air traffic and transport at the

international and the domestic airports and enclaves in the country. Indira

Gandhi Rashtriya Uran Akademi was set up at Fursatganj to standardize

and improve the flying training facilities in the country. Till January 1997 it

had trained 289 pilots on fixed wing aircraft and 20 pilots on rotary wing

aircraft. Flying/gliding training clubs: On December 31, 1996, besides the

above Akademi, 41 flying clubs/institutes and their branches including nine

private institutes were imparting flying training. Five gliding clubs, seven

gliding wings of flying clubs and a government Gliding Centre, Pune, were

imparting training in gliding. Development of Civil Aviation: The repeal of

the Air Corporation Act from 1 March 1994 enabled private operators to

provide air transport services. Six operators were given the status of

scheduled operators on 1 February 1995. Currently there are five

international airports and 87 domestic airports in the country with 28

civilian enclaves for defense purposes. The Airport Authority of India plans

to invest Rs 35,000 million for the construction and up gradation of

airports. Budgetary support of Rs 485.50 million was allocated to AAI in

1996-97. In august 1996, in a major policy decision, the government

allowed the private sector to set up air cargo complexes in a bid to ensure

smooth movement of export cargo. Domestic and foreign investors

including NRIs have been invited to participate in the development of

infrastructure support at select airports. With a market share of 43 per cent

Indian Airlines is the biggest player in aviation. Rs 24,710 million have

been marked for development of the civil aviation sector in the annual plan

for 1997-98. Both Domestic cargo and International cargo are poised to

grow according to the projections. The major reasons, which can be

attributed to this increase, are (a) Increase in overseas trade, (b) Indian

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economic policies (c) Customer service orientation, (d) Inventory

concerns, (e) E-commerce development.

In India, airports were totally owned and managed by central

government or the armed forces. The Airport Authority of India (AAI), a

body functioning under the Ministry of Civil Aviation was responsible for

managing the airports in India. It owns 122 airports, 61 of which are

operational. The AAI operate most aspects of the airport (including air

traffic control) and procure most of their equipment directly (via global/local

tenders). India’s airports handle 42 million passengers, of which the four

Metro gateway airports (Delhi, Mumbai, Kolkata and Chennai) account for

47 per cent of revenue and 66 per cent of the passengers. Until 2000,

there were five major international airports, - Mumbai, Kolkata, Delhi,

Chennai and Trivandrum. But the GoI announced a further six airports

including Amritsar, Bangalore, Hyderabad, Cochin during the course of

2002. According to projections, Indian air passenger traffic was estimated

to grow to 100 million passengers by 2012 from 36.98 million in 1998-99.

Growth projections in the cargo front were also promising. Airport

infrastructure is linked to development of India's international

competitiveness and her ability to attract foreign investments. The policy

opened the doors of private investment in this sector, including

investments from foreign airport authorities.

Infrastructure at Selected Indian Airports:

Rajiv Gandhi International Airport, Hyderabad

India is considered one of the fastest growing aviation markets in

the world. With rapid liberalization of the Indian aviation policy, growth in

air travel per capita and boom in the business/tourism sectors, the need

for internationally benchmarked airports is greater than ever. Hyderabad

Airport is located around 25 kms from Hyderabad city. Built to the

capacity of 40 million passengers per annum, the Airport is designed to

handle New Large Aircrafts (NLA), including the Airbus A380. The

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modular design of the airport will allow incremental expansion of each

area, without major rebuilding or operational disruption. The city of

Hyderabad is a natural aviation hub, owing to its strategic location on the

map of India. It is connected to all major Indian airports within two hours

flying time. Internationally too, Hyderabad makes an ideal transit point

for flights from west to east and vice versa. Taking advantage of the

rapidly expanding Indian aviation sector and leveraging Hyderabad's

strategic location, the Hyderabad airport is positioned to become an

important hub on the global aviation map. GMR Hyderabad International

Airport Limited (GHIAL) is a joint venture company promoted by the

GMR Group (63 per cent) in partnership with government of India (13

per cent), government of Andhra Pradesh (13 per cent) and Malaysia

Airports Holdings Berhad (11 per cent). The Company was incorporated

to design, finance, build, operate and maintain a world class greenfield

airport at Shamshabad, Hyderabad. The project is based on the Public

Private Partnership (PPP) model and is structured on a Build, Own,

Operate and Transfer (BOOT) basis.

The airport which was commissioned in a record time of 31

months in March 2008 has an initial capacity of 12 million passengers

per annum (MPPA) and 100,000 tons of cargo handling capacity per

annum. The Project has the flexibility to increase capacity to

accommodate over 40 MPPA and shall be developed in a phased

manner. The airport provides world-class facilities and infrastructure, in

accordance with ICAO standards and practices to handle large aircraft

and international traffic. RGIA is the first Indian airport to have the

Airport Operations Control Centre which acts as the nerve centre for all

coordination within the airport. Located strategically at the geographical

centre of India within a two hour flying time to all the major cities in India,

Hyderabad is well positioned and within a five hour radius from all major

cities in the Middle East and South East Asia. Thus, it has the potential

to not only become one of the main air travel hubs in India, but also an

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important center for destination-cum-transit location for travel between

the East and the West. The modular integrated Cargo facility is spread

over 14,330 sq.mts with a capacity to handle 100000 MT annually.

Adjoining is an exclusive apron to accommodate Code-F aircraft.

The airport provides two Animal Quarantine Stations. The first

Quarantine Station is located at the International arrivals and the

second, in the Cargo Satellite Building. RGIA has been rated the best in

the world by Airports Council International (ACI) in the 5-15 million

passengers category for its Airport Service Quality for 2009. The Airport

has also been adjudged as the 5th best across all categories, both in the

world as well as the Asia Pacific Region. Other salient features of the

Airport include an integrated terminal that offers an international

experience with a local flavor, airport village with shopping arcade, 305-

room business hotel located just three kilometers away from airport,

conference facilities for the business traveler and integrated modern IT

systems. The airport has 13 lounges including the airline lounges being

operated by Air India and Kingfisher. Plaza Premium operates the

country’s first airline independent lounges at both domestic and

international departure concourses, offering services like business

center, baggage hold with pick-up & delivery, 28 bed Nap & Shower

besides spa services as well.

Retail area in the RGIA has a contemporary ambience akin to a

modern duty free and paid shopping space. This is a unique and first of

its kind model featuring a walk-through concept. The duty free offering at

the RGIA is designed to offer and create a unique experience to the

traveler of today. RGIA is the first airport in the world to be awarded the

Leadership Energy and Environment Design (LEED) silver rating for its

eco-friendly design. It has also won the ‘Outstanding Concrete Structure

of Andhra Pradesh’ award from the Indian Concrete Institute. The Rajiv

Gandhi International Airport at Hyderabad is well set to establish the city

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prominently on the global aviation map, thereby contributing to the

prosperity, growth and all round economic development of the region.

There has been impressive growth of air passengers at

Hyderabad Airport during the year 2002-03 to 2013-14. The total

passengers during 2013-14 were reported to be 8.7 million while during

2002-03 there were only 2 million passengers (Table 4.10).

Table: 4.10

Growth of Passengers at Hyderabad Airport Year Domestic International Total

2013-2014 6,358,189 2,370,067 8,728,256

2012-2013 6,282,075 2,084,656 8,366,731

2011-2012 6,703,050 1,899,289 8,602,339

2010-2011 5,758,608 1,875,557 7,634,165

2009-2010 4,793,910 1,700,920 6,494,830

2008-2009 4,648,657 1,566,803 6,215,460

2007-2008 5,619,320 1,442,240 7,061,560

2006-2007 4,567,474 1,206,058 5,773,532

2005-2006 3,040,565 1,001,082 4,041,647

2004-2005 2,095,845 749,072 2,844,917

2003-2004 1,601,450 610,366 2,211,816

2002-2003 1,451,015 459,174 1,910,189

Source: Hyderabad Airport. Indira Gandhi International Airport, Delhi

We understand that traveling with the family is a special

experience and we extend what we can to make that experience

comfortable. Delhi International Airport provides special rooms for

babies and small children. Parents may avail these rooms to take care of

any special needs for their kids such as changing of diapers and other

need that their child / children may require.

A compact and well equipped play area is available for children of

different ages and interests, after the security hold in the departure

181

terminal. For all our little flyers, DIAL provides

complementary strollers only at terminal 1D. Children holding a

confirmed reservation and traveling alone qualify as Unaccompanied

Minors. Those Guardians/ Parents who are unable to locate the airline

representatives to take custody of their unaccompanied Minors get in

touch with the Customer services staff at the contact zone outside each

Terminal. The customer service staff in turn calls the respective Airlines

to take the custody of the Unaccompanied Minors for their comfortable

travel. The airport offers many avenues for entertainment and relaxation.

The airport has various places to shop and eat. A compact and well

equipped play area called Kids zone is available for children of different

ages and interests after the security hold in the departure terminal. Foot

massagers are available after the security hold to prepare the

passengers for a comfortable flight. Several Executive lounges are

available to relax and enjoy, and take care of business needs, if any. A

special Smoking area is available for smokers near the Food Street on

the first floor in Terminal 1D. In the International Departure, there is a

smoking room after the security hold. The International Terminal has

a prayer room after the Security hold.

Chaudhary Charan Singh Airport, Lucknow

Chaudhary Charan Singh Airport Lucknow is located in the Lucknow

city known as City of Nawabs. Lucknow is capital of Uttar Pradesh state

which is the most populated and fourth largest state (area wise) of India.

The Industrial Town Kanpur is located nearby. Thus CCS Airport serves

the business traffic of Lucknow & Kanpur and has a huge catchment area

for Gulf bound traffic. It is a Customs Airport and is located about 12 km

from the city centre. It has been designated as major airport by Airport

Economic Regulatory of India. At this airport, a world class Integrated

Terminal Building made of glass and steel structure having all modern

facilities is operationalised. Airport is capable of handling aircrafts up to

182

A330-200 type of Aircraft. At this Airport International airlines Air India,

Saudi Arabia, Fly Dubai, Oman Air, Air India Express, Budha Air and

Domestic airlines Air India, Jet Airways, Jetlite, Kingfisher Airlines, Indigo,

Go Air, are operating. There are average 26 flights per day operating

to/from this airport. Annual traffic handled by the Airport is shown in Table

4.11.

Table: 4.11 Annual Traffic Handled by Airport

Financial Year Aircraft Movement Passenger Movement Domestic

2006-07 14702 482904 2007-08 11878 547318 2008-09 16676 669427 2009-10 17343 1035443 2010-11 19472 1267959

International 2006-07 1306 120802 2007-08 1626 143633 2008-09 2993 179867 2009-10 2387 275191 2010-11 2324 331467

Source: Lucknow Airport.

Performance of Civil Aviation Industry:

There has been impressive progress in annual traffic and operating

of Indian carriers during last 10 years. During 2011-12, duration of aircraft

flown was recorded 1.46 million hours with 830.29 million kms. The total

passengers carried out in the year were reported to be 75.22 million. The

available seats were reported 150150 million kms. in the corresponding

year. Passenger load factor was recorded 75.1 per cent in 2011-12 while it

was recorded 64.8 per cent during 2002-03 (Table 4.12).

183

Table: 4.12

Annual Traffic and Operating of Indian Carriers in India Year Aircraft Flown Passengers Available

Seat Kms. (Million)

Passenger Load

Factor ( per cent) Hours

(No.) Kms. (000)

Carried (No.)

Kms. Performed

Million)

2002-03 424264 250340 18151799 28667 44239 64.8

2003-04 489814 287023 20169524 32674 49908 65.5

2004-05 574082 333115 24771264 40302 58916 68.4

2005-06 712858 414516 31752173 51567 75530 68.3

2006-07 917080 534133 43353973 63874 93326 68.4

2007-08 1144259 680384 53492771 77847 115055 67.7

2008-09 1211765 712681 49516433 78445 121332 64.7

2009-10 1253635 716202 56948624 89443 125078 71.5

2010-11 1354728 761774 67000819 103171 137491 75.0

2011-12 1460502 830289 75216631 112794 150150 75.1

Source: ICAO. There has been increasing trend in aircraft flown, passengers

carried, available seats and passenger load factor during 2002-03 to

20011-12. During 2002-03, 13.95 million passengers were carried by

Indian carriers while this increased up to 60.84 million during 2011-12.

Similarly, passenger load factor has increased from 56.3 per cent in 2002-

03 to 75.1 per cent in 2011-12 (Table 4.13).

Table: 4.13

Annual Domestic Traffic and Operating of Indian Carriers during Last Ten Years

Year Aircraft Flown Passengers Available Seat Kms.

(Million)

Pax. Load

Factor ( per

cent)

Hours (No.)

Kms. (000)

Carried (No.)

Kms. Performed

(Million)

184

2002-03 295173 165827 13951034 12848 22833 56.3

2003-04 343795 189336 15676948 14566 24936 58.4

2004-05 398714 213618 19445043 18030 27790 64.9

2005-06 475352 252668 25204988 23709 35077 67.6

2006-07 648408 347912 35792747 33519 48702 68.8

2007-08 805934 439378 44384302 41718 60590 68.9

2008-09 808442 426099 39467072 37704 59160 63.7

2009-10 820991 412594 45337263 43959 61091 72.0

2010-11 892630 438559 53842538 52707 68216 77.3

2011-12 987925 500233 60837455 59084 78639 75.1

Source: ICAO.

There has been significant increase in the number of aircraft

departures in India during the period of 2002-03 to 2011-12. In 2002-03,

about 2 lalkh aircraft departures were reported while during 2011-12, the

number of aircraft departures increased by more than 6 lakhs. The share

of national carriers has significantly decrease from 47.3 per cent from

2002-03 to 19.4 per cent in 2011-12 while the share of private carriers has

increased from 52.7 per cent in 2002-03 to 80.6 per cent in 2011-12

(Table 4.14).

Table: 4.14

Aircraft Departures on Scheduled Domestic Services Year Aircraft Departure (Numbers) Percentage Share ( per cent)

National Carriers

Private Carriers

Total National Carriers

Private Carriers

Total

2002-03 96,266 107,211 203,477 47.3 52.7 100.0 2003-04 105,172 129,074 234,246 44.9 55.1 100.0 2004-05 109,996 155,893 265,889 41.4 58.6 100.0 2005-06 102,499 213,326 315,825 32.5 67.5 100.0

185

2006-07 104,854 315,812 420,666 24.9 75.1 100.0 2007-08 112,424 408,307 520,731 21.6 78.4 100.0 2008-09 104,631 404,936 509,567 20.5 79.5 100.0 2009-10 110,265 402,658 512,923 21.5 78.5 100.0 2010-11 113,604 417,448 531,052 21.4 78.6 100.0 2011-12 116,466 484,043 600,509 19.4 80.6 100.0

Source: ICAO.

Growth of scheduled domestic passenger traffic is shown in

Table 4.15. During 2002-03, 139.5 lakh domestic passengers were carried

while the numbers of domestic passengers carried were reported 608.4

lakh in 2011-12. Thus, it shows impressive progress in domestic

passenger traffic. On an average, domestic passengers carried has shown

fluctuating trend with the highest growth in 2006-07 and negative growth in

2008-09.

Table: 4.15

Scheduled Domestic Passenger Traffic in India Year Scheduled

Domestic Passenger Carried

(In Lakhs)

Pax. Load Factor ( per

cent)

per cent Change In Scheduled Domestic Passengers Carried

2002-03 139.5 56.3 - 2003-04 156.8 58.4 12.4 2004-05 194.5 64.9 24.0

2005-06 252.0 67.6 29.6 2006-07 357.9 68.8 42.0

2007-08 443.8 68.9 24.0

2008-09 394.7 63.7 -11.1 2009-10 453.4 72.0 14.9

2010-11 538.4 77.3 18.8 2011-12 608.4 75.1 13.0

Source: ICAO

186

During 2011-12, there were 355 fleets in India and most of the fleets

were from private carriers. The numbers of national carriers were reported

to be 126 while private carriers were recorded 229 in the corresponding

years. Out of total fleets, the share of Jet Airways was reported high

followed by Indian Airlines and Indigo. Average daily revenue hours were

recorded high for Go Air followed by national carriers and private carriers

(Table 4.16).

Table: 4.16

Scheduled Indian Carriers During 2011-12 Arline Number

of Aircrafts

Number of Revenue

Departure

Number of Hours Flown

Average Daily

Revenue Hours

Air India + Indian Airlines

94 137,071 322,001 9.9

Ai Express 21 18486 58,339 N.A. Alliance Air 11 14,359 19,951 7.4

National Carriers 126 169916 400291 11.4 Jet Airways 103 175,646 400,060 11.9

Jet Lite (P) Ltd. 19 41,992 70,269 10.9 Indigo 55 98,416 173,159 10.9

Spice Jet 40 81,034 115,910 9.8 Go Air 12 28,265 45,421 13.5

Private Carriers 229 425,353 804,819 11.3 Grand Total 355 595,269 1,205,110 11.3

Source: ICAO

Fleet size of all scheduled Airlines in India is shown in Table 4.17.

During 2002-03, there were only 138 Airlines while the number of Airlines

has increased to 355 in 2011-12. The highest increase has been reported

in case of Air India and Indian Airlines followed by Jet Airways. It is to be

noted that Kingfisher has withdrawn its air services due to some reasons

while Indian Airlines has made the largest alliance.

187

Table: 4.17

Fleet Size of All Scheduled Airlines in India Name Of

The Airline

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

Air India 31 35 37 38 35 36 31 33 29 94 Ai Express - - - 4 13 18 21 25 Ns 21

Indian Airlines

43 47 52 55 59 72 72 76 77 *

Alliance Air 11 15 15 15 15 20 16 17 14 11 Jet Airways 41 41 42 53 63 81 88 88 98 103 Jet Lite (P)

Ltd. 12 20 22 29 27 25 24 25 18 19

Air Deccan - 4 16 29 39 41 - - - - Paramount

* - - - 1 5 5 5 - - -

Spice Jet - - - 5 11 19 19 20 Ns 40 Kingfisher - - - 11 25 41 83 66 66 -

Go Air - - - 3 5 6 - 8 12 12 Indigo - - - - 8 17 19 25 38 55 Total 138 162 184 243 305 381 378 383 352 355

Source: ICAO Growth of scheduled international traffic is shown in Table 4.18.

There has been about 5 times increase in the number of international

passengers during 1990-91 to 2009-10. During 1991, total number of

passengers were reported 6.3 million which increased 32.1 million in

2009-10. Out of total international passengers, a large segment of

passengers constituted foreign passengers. During 2009-10, 21 million

foreign passengers were reported while the numbers of Indian passengers

were recorded 11.1 million.

188

Table: 4.18 Growth of Scheduled International Traffic

(Passengers in Millions) Year Indian Foreign Total

1990-91 2.0 4.3 6.3 1991-92 2.1 4.7 6.8 1992-93 2.2 5.1 7.3 1993-94 2.2 5.5 7.7 1994-95 2.4 5.8 8.2 1995-96 2.9 6.6 9.4 1996-97 3.1 7.0 10.1 1997-98 3.3 7.4 10.7 1998-99 3.3 7.7 11.0

1999-2000 3.5 8.0 11.5 2000-01 3.6 8.7 12.2 2001-02 3.5 8.5 12.0 2002-03 4.0 9.2 13.2 2003-04 4.3 10.4 14.7 2004-05 5.0 12.3 17.3 2005-06 6.1 14.0 20.1 2006-07 7.2 16.2 23.4 2007-08 8.7 18.5 27.2 2008-09 9.6 19.4 29.0 2009-10 11.1 21.0 32.1

Source: ICAO

During 2011-12, national carriers reported the employment of 2871

persons while private carriers reported the employment of 24605 persons.

Out of total employment in Airlines, most of the employed persons were in

the category of ground staff, maintenance and overhaul, ticketing and

sales and cabin attendants (Table 4.19).

189

Table: 4.19 Personnel Employed in Airlines

Category of Stay Number of Personnel

Total Expenditure (Rs. In Millions)

National Carriers

Private Carriers

National Carriers

Private Carriers

Pilots and Co-Pilots

1,846 2911 8,843.58 14,499.1

Other Cockpit Personnel 52 500 5.77 342.3 Cabin Attendants 3,873 5538 4,375 2,918.3

Maintenance and Overhaul Personnel

7,588 3210 8,809.03 3,428.5

Ticketing and Sales Personnel 6,024 1828 4,698.28 755.4 All Other Personnel 9,398 10393 8,552.35 4,777.8 Overseas Payroll 225

Total 28,781 24,605 35,284 26,721.2

Source: ICAO Most of the airlines reported that they are facing recurring loss

during 2011-12. The loss has been reported much higher for national

carriers as compared to the private carriers. In the private carriers, the loss

was reported higher for Jet Airways followed by Spice Jet and Jet Lite

(Table 4.20).

Table: 4.20

Income and Expenditure of Indian Carriers (Rs. In Million)

Carrier/Airline Operating Revenue

Operating Expenses

Operating Result

National Carriers

NACIL (AI+IC Combined)

147,138.1 198,139.9 -51001.8

Air India Express 13,778.2 17,003.5 -3225.3

Alliance Air 2952.1 4102.3 -1150.2

Total 163,868.4 219,245.7 -55,377.3

190

Private Scheduled Domestic Airlines Jet Airways 147,859.7 154,407.4 -6547.7

Jet Lite (P) Ltd. 18,731.7 21,617.1 -2885.4 Go Air 15,633.8 16,380.3 -746.5

Spice Jet 39,432.6 45,726.3 -6293.7 Indigo 55,524.0 56,400.8 -876.8 Total 277,181.8 294,531.9 -17,350.1

Grand Total 441,050.2 513,777.6 -72,727.40

Source: ICAO During 2011-12, all the scheduled airlines reported heavy loss.

However, airlines received revenues from passengers, freight, excess

baggage etc. The expenditure by airlines has been reported significantly

higher for flight operations while the major source of revenue has been

passengers. The amount spent on depreciation and amortization has been

also reported higher (Table 4.21).

Table: 4.21 Detailed Financial Results of Scheduled Airlines

(Rs. In Millions) Item National

Carriers Private

Scheduled Domestic Airlines

All Scheduled

Airlines

1. Scheduled Services Total Operating Revenue 163,868.4 277,181.8 441,050.2 (A) Passenger 129738.6 246125.3 375,863.9 (B) Ex. Baggage 965.3 1612.5 2,577.8 (C) Freight 7717.5 18164.2 25,881.7 (D) Mail 1048.3 109.3 1,157.6 Total 139469.7 266011.3 405,481.0 2. Non-Scheduled Services 6678.9 274.3 6,953.2 3. Other Operating Revenue 17719.8 10896.2 28,616.0 Total Operating Expenses 219245.7 294,531.8 513,777.5 1. Flight Operations 113602.7 176117.8 289,720.5 2. Maintenance And Overhaul 5210.8 17439.7 22,650.5

191

3. Depreciation And Amortization

18021.4 10489.3 28,510.7

4. User Charges & Stationery Expenses

12483.8 24314.4 36,798.2

5. Passenger Services 9035.2 9064.8 18,100.0 6. Ticketing,Sales & Promotion 6131.8 22754.7 28,886.5 7. General & Administrative 39799.7 26030.7 65,830.4 8. Other Operating Expenses 14960.3 8320.4 23,280.7 C. Operating Result (55,377.3) -17350.0 (72,727.3) D. Total Non-Operating Items (Balance)

-24431.3 -4772.8 (29,204.1)

E. Net Profit Or Loss(-) 1. Before Income Tax -85407.7 -22122.8 (107,530.5) 2. After Income Tax -85428.2 -21429.0 (106,857.2)

Source: ICAO Operating revenue for revenue passenger kilometer performed was

recorded Rs. 4.78 in 2002-03 which has declined to Rs. 3.91 in 2011-12.

Similarly, operating expenses per revenue passenger kilometer performed

has also declined significantly during the corresponding period

(Table 4.22).

Table: 4.22

Operating Revenue and Expenses per Revenue Passenger

Year Operating Revenue Per Revenue Passsenger Kilometre Performed

(In Rs.)

Operating Expenses Per Revenue Passenger Kilometre

Performed (In Rs.)

2002-03 4.78 4.93

2003-04 3.95 3.84

2004-05 4.86 4.67

2005-06 4.95 5.06

2006-07 4.68 5.42

192

2007-08 4.43 5.23

2008-09 4.93 6.01

2009-10 4.24 4.66

2010-11 3.81 4.08

2011-12 3.91 4.56

Source: ICAO Overall analysis demonstrates that there has been paradigm shift in

civil aviation in India. The role of public sector in civil aviation has

drastically declined while the share of private sector in civil aviation has

significantly increased over the period. There has been enormous growth

in infrastructure and facilities at the major airports besides, phenomenon

growth in the passengers. A large segment of passengers comprises of

women and girls. A large proportion of women passengers including girls

travel alone or with their small kids. Thus, they require special facilities

and care at the airport. Most of the airports are not concerned about the

special care and services for women segment of passengers. No airline

has introduced any scheme for addressing the gender concerns and

issues while delivering the air services to them. Even gender concerns

have not been incorporated in the service manuals of the airlines. Thus, it

is imperative to restructure the services and facilities at the airport and in

the airlines to cater the needs and requirements of women passengers.

References Government of India (2012), Report of Working Group on Civil Aviation Sector,

Ministry of Civil Aviation, Government of India. Ministry of Civil Aviation (2012). Annual Reports. Industry Sources; Analysis.

Government of India.

Directorate of General of Civil Aviation. (2012) Airport Authority of India. Analysis: Ministry of Civil Aviation.

International Civil Aviation Organisation. (2011). Annual Report. Montreal.

World Bank. (2012). Annual Report.

IATA. (2010). World Air Transport Statistics. Annual Report.