Indian Aviation Review 2010

Air Traffic Growth

The year 2010 has seen a robust growth in terms of aircraft movement and passengers handled. Vis-a-vis 2009 the growth rate has been 3.4% in respect of aircraft movement and 16.2% in respect of passengers handled and 26.9% with respect to cargo.

Passengers carried by domestic airlines from January-November, 2010 were 468.09 lakh as against 393.53 lakh in the corresponding period of the year 2009 thereby registering growth of +18.9%.

There are, at present, 16 Scheduled (11 scheduled passenger airlines, 02 scheduled regional airlines and 03 scheduled cargo airlines) and 121 Non-scheduled Operators. At present there are 419 aircraft with the scheduled operators. The total aircraft in the Non Scheduled category are 360.

This year saw the Ministry of Civil aviation take several initiatives to facilitate the passengers to undertake hassle free and convenient air travel by the issue of CARs through the Directorate General of Civil Aviation (DGCA).

A state of the art new integrated Terminal-3 has been operationalized at the Delhi Airport in July this year creating a new beginning in world class infrastructure, with public-private participation in the aviation sector.

The much awaited environmental clearance has also come through for construction of a New Green Field airport at Navi Mumbai.

Following are some of the important issues taken up by the Ministry of Civil Aviation during the year 2010:

Initiatives of the Ministry in the field of Economic Regulation

To elicit the views of stakeholders, to gain expertise from the concerned experts and to augment capacity to address issues that are predominantly economic in content, the Civil Aviation Economic Advisory Council was established on 9 December, 2010 under the Chairmanship of Secretary Civil Aviation and with members drawn from different fields of expertise that are directly and indirectly connected to Civil aviation sector. The first meeting of the Council took place on 13 December 2010.

Consumer protection measures

(i) On 6 of August, 2010 a Civil Aviation Rule (CAR) has been issued which provides for compensation and facilities to the passengers in case of denied boarding, cancellations and delays. The violation of this CAR is punishable under the provisions of scheduled VI to the Aircraft Rules, 1937. This will be a category III offence attracting a maximum penalty of 6 months in prison or Rs. 2 lac fine or both

(ii) On 31 July, 2010 CAR has been issued in order to promote fair competition in the airline sector and to ensure that consumers do not receive inaccurate or misleading information on airline services, by strengthening the computer reservation system/global distribution system

(iii On 3 September, 2010 the relevant Rule has been amended and circular issued to provide that the Pilot-In-Command may permit the use of cellular/mobile phones after the aircraft has landed and cleared active runway. However, this facility will not be available during low visibility conditions.

Connectivity in North Eastern Region

At present, there are 11 operational airports served by the Scheduled airlines in the North-East region viz. Dibrugarh, Guwahati, North Lakhimpur, Imphal, Dimapur, Agartala, Shillong, Jorhat, Silchar, Tezpur & Lengpui. 348 flights per week are being operated by NACIL, Alliance Air, Jet Airways, JetLite, Kingfisher Airlines, Spicejet and IndiGo to/from these airports.

The no. of flights in the NER has been increased from 286/week in Summer Schedule 2010 which is an increase of 21.67%. In addition, Pawan Hans Helicopters Ltd. (PHHL) is providing helicopter services under the aegis of the State Governments of Arunachal Pradesh, Nagaland, Meghalaya, Sikkim, Tripura.

Further, the DGCA has commissioned a comprehensive study to evolve a roadmap for air connectivity to the North-eastern region.

Bilateral Agreements

Election in the Council of ICAO

In the 37th Assembly session of the International Civil Aviation Organisation (ICAO) held at ICAO Headquarters at Montreal in Canada on 28 September – 08 October, 2010, elections were held for the representation of the Member State countries in the Part I, Part II and Part III of the Council of ICAO. India has contested for continuance of its representation in the Part II.

The total number of seats was 12, equaling the number of contestants. 163 countries cast their votes. India secured 148 votes out of 162 votes and was at number 2 position in the group in terms of number of votes secured.

Amendments of Air Services Agreements (ASAs) with foreign countries

Keeping in view the recent developments in the civil aviation sector, and with a view to modernize and update the existing ASAs with foreign countries as per the ICAO templates, bilateral air services consultations were held in 2010 with foreign countries viz. Zimbabwe, Indonesia, Ireland, Brazil, UK and Iran and the respective ASAs have been amended and finalized.

Bilateral Air Services Agreements were formally signed with Bhutan, Iceland, Nepal, Bosnia & Herzegovina, South Africa and Iran. Apart from these, new Air Services Agreements have been initialed with Senegal, Barbados and Rwanda.

Technical co-operation agreements with Nepal and Afghanistan

Technical co-operation agreements were signed by the Director General of Civil Aviation (DGCA) and Airports Authority of India (AAI) with the Nepalese and Afghan civil aviation authorities in order to provide active technical support including training of personnel to these countries by India to promote and develop civil aviation sector.

India – EU civil aviation co-operation programme

Under the Joint Action Plan, a Civil Aviation Co-operation Project - II has been agreed to. Its Terms of Reference (TOR) have been finalized. The project called “Institutional Capacity Building in the Civil Aviation sector in India (ICAA)” has been started under India – EU civil aviation co-operation.

India – US Aviation Joint Working Group on Security

The India – US Aviation Joint Group Meeting on Security was held in New Delhi on 20 – 21 January, 2010. During this meeting two MoUs on deployment of Air Marshals and Co-operation in Airport Technical Visits were signed between the Government of India and the Government of United States of America. The two MoUs mark the beginning of an ongoing co-operation between the two countries in matters of security.

Equity Induction by the Government in Air India

Air India is expected to incur a loss of Rs. 5,656.52 crores during the year 2009-10, mainly due to the prevalent economic recession, low yields and load factors coupled with higher fuel costs, higher interest payment on working capital loans and aircraft loans.

The present paid up equity capital of NACIL is Rs. 145 crores which is not sufficient for an aviation company of its size. Therefore, the Government has approved the release of funds to the extent of Rs. 800 crores in tranches of Rs. 400 crores in a month in the form of equity.

Accordingly, an amount of Rs. 800 crores has been released in February and March, 2010. A provision of Rs. 1200 crores has been made in the current financial year, the release of which is expected to happen this year. The equity induction would ease the cash flow situation of the company and preclude borrowing from the markets at high costs to this extent.

Meanwhile the company has seen an increase in load factor from 62% to 67% and also passenger yield from Rs. 2.92 to Rs. 3.30 RPKM.This has resulted in an increased Passenger and cargo revenue of Rs. 1,189 crores.

The company has undertaken several cost reduction measures with active support from the Government.

Security Measures

Keeping in view the security scenario and enhanced civil aviation activities, four regional offices of the Bureau of Civil Aviation Security (BCAS) has been created at Guwahati, Amritsar, Hyderabad and Ahmedabad airport in addition to the existing Regional offices at Delhi, Mumbai, Chennai and Kolkata.

The Anti-Hijacking (Amendment) Bill, 2010

With a view to enhance the punishment, for the offences of hijack of aircrafts and also for the conspirators, to death penalty, the amendment is proposed in the Anti-Hijacking Act, 1982. The final Bill has been introduced in the Rajya Sabha on 19 August, 2010. The Bill has now been referred to the Ministry of Law.

Mangalore Crash - IX 812 of Air India Express operating from Dubai to Mangalore was involved in an unfortunate accident on 22nd May 2010. There were 160 passengers and 6 crew members on Board. There were only 8 survivors. A Court of Enquiry headed by Air Marshal (Retd.) B.N. Gokhale was set up. The Court has submitted its report which is under examination.

Airports

Phase-I of the Modernization of Delhi Airport was completed on 31 March 2010, at an estimated project cost of Rs. 12258 crores. A new integrated Terminal-3 has become operational which has 34 million passengers handling capacity per annum.

The major development works completed Modernization of Mumbai Airport during 201010 are South-West pier, integrated processor terminal, Baggage Handling System (BHS) in the new domestic terminal, six Passenger Boarding Bridges (PBBs) in the new domestic terminal.

Under the Policy for Greenfield Airports the Government, during the year had accorded “in-principle” approval for setting up of a Greenfield airport at Dabra (Madhya Pradesh), Palladi (Rajasthan), Itanagar (Arunachal Pradesh), Kushi Nager (Uttar Pradesh).

Airports Authority of India (AAI) Airports Authority of India registered an all time high revenues of Rs. 4,615 Crores, which was 10% more than the previous year. Similarly, capital expenditure incurred on infrastructure works at various airports rose from Rs. 2547.52 crores to Rs. 2,742.54 crores.

New Terminal Buildings have been commissioned at Varanasi, Barapani (Shillong), Madurai, Mysore and Ahmedabad airports.Existing terminal buildings have been upgraded/ modernized at Pune, airport. Runways/ Taxiways have been extended / expanded at Varanasi, Ranchi, Guwahati, Bhopal, Gondia, Ludhiana, Cuddappah and Coimbatore airports.

Upto November 2010 progress of work for modernization and development at Chennai and Kolkata Airports has been 66% and 46%.Work on the construction of new Greenfield Airports at Pakyong in Sikkim is in progress.

For the implementation of the GAGAN project of satellite based navigation, site acceptance test for Indian reference stations has been completed at Goa, Jaiselmer, Porbander and work is in progress at Dibrugarh, Nagpur and Bhubaneswar.

A dedicated Air Cargo Complex facility at Veer Savarkar Airport, Port Blair has been operationalised.

A new Joint Venture Company under the name “Chandigarh International Airport Limited” has been set up to undertake the construction of a new International Terminal Building at Chandigarh Airport.

Setting up of International airport at Navi Mumbai: After getting the environmental clearance in November this year, the development of the Greenfield airport at Navi Mumbai will get underway. It is projected to have sufficient capacity to handle the additional traffic around Mumbai, which is expected to go upto about 80 mppa by 2031-32

Helicopters

Pawan Hans Helicopters Ltd. (PHHL) In 2009-10 the Company achieved record revenue hours of 29,890 as compared to 27,050 in 2008-09. During 2009-10 the net profit after tax was Rs.35.59 crores as against Rs.25.12 crores in 2008-09.An MOU has been signed with Andaman & Nicobar Administration for introduction of Sea Plane Operation in Andaman & Nicobar Islands. The Sea Plane operation for the first time in India will commence from 27 December, 2010. PHHL has completed and operationalised two projects of heliport /helipad in October, 2010 – one at Akshardham and the other at Rohini, both in Delhi. DGCA has also allowed PHHL to utilize the facilities at Gliding Center at Hadapsar to set up a Heliport and helicopter training institute.

Training and development

Indira Gandhi Rashtriya Uran Akademi (IGRUA): - The Akademi this year, has inducted 14 Single engine DA 40 Aircraft and one twin engine DA 42 aircraft and installed two Flight Simulators. The Akademi has 14 flying instructors and has flown 14934 hrs during 2010. So far this year, 62 cadets have completed their flying and 114 trainees have been inducted. Campus selection team from Air India and Jet Airways visited Akademi in Aug/Sept. and December, 2010 for induction of trainee pilots.

Events and Accolades

India Aviation 2010 - a Civil Aviation air show, was held for the second time at Begampet Airport, Hyderabad in March 2010. The next edition would be held from 14-18, March 2012.

An independent audit by FAA under IASA program confirmed India to be a role model in the Asia Region in the Civil Aviation. The Ministry of Civil Aviation was awarded on 1 December, 2010 the “KPMG – Infrastructure Today Award” for being the most admired Central Entity in the transport sector.

Fatal India Crash Pilot Had "Sleep Inertia"

Snoring was picked up by the cockpit voice recorders of an Air India Express 737-800 not long before it ran off the runway at Mangalore Airport in May, killing 158 of 164 aboard, according to a Court of Inquiry probe. The flight's captain had more than 10,200 hours and reportedly slept for much of the roughly three hour flight out of Dubai. He reportedly awoke shortly before attempting to land in heavy rain. Investigators found the captain was likely disoriented due to "sleep inertia" and flew the approach right through warnings from his 3,600 hour copilot "to abort" and "go around." The aircraft touched down roughly 1,500 meters down the 2,400-meter table-top runway at Mangalore and the co-pilot said "we don't have runway left." Investigators believe that had emergency braking been applied, the crew could have stopped the aircraft on the wet runway before sliding off the steep terrain at the runway's end, but concluded the crew attempted to return to the air. The aircraft slid down a steep embankment and exploded in the jungle below.

India's Civil Aviation Minister received the report on Tuesday and told reporters he would study it before taking any action. The civil aviation ministry has asked the Airports Authority of India to extend the runway by another 1,000 feet as a separate issue. Experts are in agreement that the crash had nothing to do with the length of the runway. Work and rest rules, however, are a concern. In June 2008, an Air India plane flew 200 miles past its destination while both pilots slept. Evidence has not yet been provided to support or dispel concerns that the pilot's schedule lacked ample opportunity for sleep prior to the flight.

Indian Aviation 2010 Snapshot

The Indian aviation industry is one of the fastest growing aviation industries in the world (& incurring maximum losses) with private airlines accounting for more than 75 per cent of the sector. With a CAGR at 18 per cent and 454 airports and airstrips in place in India, of which 16 are designated as international airports, Union Civil Aviation Minister Praful Patel has stated that aviation sector will witness revival by 2011. With an increase in traffic movement during December 2009 and increase in revenues by almost US$ 21.4 million, the Airports Authority of India seems set to accrue better margins this fiscal, as per the latest estimates released by the Ministry of Civil Aviation. This is being primarily attributed to increase in the share of revenue from Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL) along with increase in airport charges. The Hyderabad International Airport has been ranked amongst the world's top five in the annual Airport Service Quality (ASQ) passenger survey along with airports at Seoul, Singapore, Hong Kong and Beijing. The Hyderabad International Airport is managed by a public-private joint venture consisting of the GMR Group, Malaysia Airports Holdings Berhad and both the State Government of Andhra Pradesh and Airports Authority of India (AAI). Airports Authority of India (AAI) is also spending US$ 427.5 million on developing the airports in Kolkata and another US$ 384.7 million on Chennai airport. The AAI is also looking at upgrading and modernising 35 non-metro airports. Both Chennai and Calcutta airports will be completed by next year. In addition to actual airport infrastructure, the government is also looking at building infrastructure in the air in terms of air traffic control (ATC) and CNS systems. Safety and surveillance is another huge area being worked upon. The civil aviation ministry has prepared a blueprint to convert Delhi airport into an international hub for passenger airlines with effect from August 2010 to help the airport, which is being expanded by a GMR-led consortium, utilise large amounts of additional capacity that will be ready by July 2010. Under the plan, NACIL will set up its hub in Delhi (Delhi currently serves as the hub for domestic operations and Mumbai for international operations).The government is also planning to make Delhi a regional hub to connect south-east Asia to Europe by capitalising on the capital’s strategic mid-point location, according to ministry sources. State governments too are taking interest in setting up special economic zones (SEZs) for the aerospace industry.

• Investment Policy With the draft FDI compendium being finalised in end of March 2010, changes are expected in the aviation policy too. Currently, Foreign equity participation in airport infrastructure is permitted upto 74 per cent with automatic approvals and upto 100 per cent in special permission. FDI upto 40 per cent is permitted in domestic air-transport services. Foreign investors are allowed to have representation (upto 33 per cent in domestic airline companies).
• The Road Ahead Investment opportunities of US$ 110 billion are being envisaged up to 2020 with US$ 80 billion in new aircraft and US$ 30 billion in development of airport infrastructure, according to the Investment Commission of India.
• Indian aerospace companies are growing too. Hindustan Aeronautics Limited (HAL) was ranked 40th in Flight International's list of the top 100 aerospace companies last year.
• Aircraft manufacturing major, Boeing is in the process of setting up the US$ 100 million proposed Maintenance Repair Overhaul (MRO) facilities in Delhi. Air India is also in the process of launching Cargo Hub in Nagpur while Deccan Aviation has already started one from the city.
• North India's first private sector greenfield international airport, Aerotropolis, will soon come up near the industrial hub of Ludhiana in Punjab. Aerotropolis will be built with an allocation of almost US$ 3.77 billion covering an area of 3000 acres by Messrs Bengal Aerotropolis which has partnered Changi International Airport of Singapore.
• Punjab will also become the first state in the country to set up a Maintenance, Repair and Overhaul (MRO) hub at Ropar, 45 km from Chandigarh, for the civil aviation sector at a cost of US$ 6.4 million
• The country's first SEZ dedicated to the Aerospace Hattaragi, 37 km from Belgaum, in Karnataka was also inaugurated. The SEZ is spread over 300 acres of land and will come up with an investment of US$ 32.06 million.
• An Aerospace and Precision Engineering Special Economic Zone with a proposed investment of US$ 641.2 million has also come up at Adibatla, Ranga Reddy district, Andhra Pradesh.

Aged jets to be trashed

Domestic carriers operating jets that are more than 15 years old will have to look for replacement soon, as the civil aviation ministry has decided to gradually phase out older aircraft to check noise level around airports. The development follows complaints from people living around the country’s busiest Delhi airport about the rising noise levels. The new rules are likely to affect foreign airlines more as they would be also be barred from flying aged jets. Most of India’s domestic carriers have relatively new fleet, including air India. “We would have almost a brand new fleet by March this year as we would have either phased out or sold our old aircraft by then,” an Air India official said adding once all the new aircraft is inducted the average fleet age would be 2-2.5 years. The government has in the past received complaints from the passengers who have alleged that some foreign carriers deploy older aircraft on India-bound flights. “Some airlines especially from Asian countries operate with older aircraft. While it is advised that air-carriers to not operate with aged jets, we are examining the legal aspect of barring such airlines from flying such aircraft to India,” a senior civil aviation ministry official. The ministry would also ask the Central Pollution Control Board (CPCB) to specify the permissible noise level separately in the vicinity of airports in line with international norms. As per the globally accepted norms, the permissible noise is higher level in the vicinity of airports than other locations. India, however, does not differentiate between the noise level around the airport and other areas. In the last few years aircraft movement in the country has multiplied with more and more people flying on the back of growing economy and increasing incomes. The Capital’s Indira Gandhi International airport (IGI) now handles as many as 650 aircraft a day. The GMR-led consortium that is handling the Delhi airport has already introduced 24-hour aircraft noise and track monitoring system (ANTMS) to penalise erring aircraft on exceeding noise threshold values. The country’s largest airport operator Airports Authority of India (AAI) has also implemented mix mode operation to spread out the aircraft movement resulting into reduction in noise level.

Indian Ministry of Civil Aviation: non-metro airports...

Development works by the Airports Authority of India (AAI) has been completed at various non-metro airports and in many the work is scheduled to be completed by 2009-10. This information was given by the Minister of Civil Aviation, Shri Praful Patel in Rajya Sabha. The details of development works completed by AAI at various non-metro airports are as follows: Vizag (Andhra pradesh)- construction of new integrated terminal building; Guwahati (Assam)- extension of runway; Mangalore (Karnataka)- construction of new integrated terminal Building; Agati(Lakshadweep)- construction of new integrated terminal building; Raipur (Madhya Pradesh)- construction of new apron; Khajuraho (Madhya Pradesh)- construction of new apron at; Aurangabad (Maharashtra) - construction of new integrated terminal building; Nagpur (Maharashtra)- construction of new international arrival hall and expansion of existing terminal building; Amritsar (Punjab)- extension of runway, expansion of apron and terminal building, construction of new terminal building; Jaipur (Rajasthan)- construction of new international terminal complex; Udaipur (Rajasthan)- construction of new terminal building complex and new apron; Madurai (Tamil Nadu)- extension of new apron; Trichy (Tamil Nadu)- construction of new integrated terminal building; Agartala (Tripura)- expansion of apron, strengthening of existing runway and construction of technical block; Agra (Uttar Pradesh)- renovation of terminal building; Dehradun (Uttarakhand)- construction of new terminal building, apron and strengthening and extension of runway. Development works scheduled to be completed in Financial Year 2009-10 at various non-metro airports are as under: Portblair (Andaman & Nicobar Island)- extenion and strengthening of apron; (Raipur (Chattisgarh)- construction of new terminal building; Ahmedabad (Gujarat)- construction of new international terminal building; Ranchi (Jharkhand)- construction of new integrated terminal building; Trivandrum (Kerala)- construction of new international terminal buiding; Bhopal (Madhya Pradesh)- construction of new integrated terminal building; Indore (Madhya Pradesh)- construction of new integrated terminal building; Pune (Maharashtra)- extension and modification of terminal building; Imphal (Manipur)- extension of apron; Dimapur (Nagaland) - extension of apron and construction of link Taxiway. Coimbatore (Tamil Nadu)- expansion and modification of existing terminal building, consruction of part parallel taxi way and extension of apron; Madurai (Tamil Nadu)- construction of new integrated terminal building; Lucknow (Uttar Pradesh)- construction of new international terminal building and new apron, expansion of existing apron; Varanasi (Uttar Pradesh)- construction of new integrated terminal building including aerobridge and extension of apron; Chandigarh (Union Territory) - construction of new terminal building; Khajuraho (Madhya Pradesh)- construction of terminal building. of terminal building. (a): Airports Authority of India (AAI) operates and Airports Authority of India (AAI) operates and maintains 87 operational and 29 non-operational airports including 23 civil enclaves at defence airfields and private airports for air traffic operations. In addition to above, Government of India have given 'in-principle' approval for setting up of new Greenfield airports at Navi Mumbai, Sindhudurg in Maharashtra, Mopa in Goa, Bijapur, Simoga, Hassan and Gulbarga in Karnataka, Pakyong in Sikkim, Durgapur in West Bengal and Datia/Gwalior in Madhya Pradesh. There is no such estimation made. However, Airports Authority of India (AAI) has plan to incur expenditure of Rs.12434 crores for modernisation of airports and air traffic services across the country during XIth Five Year Plan period (2007-2012).Two Greenfield Airports each at Bangalore and Hyderabad with an investment of Rs. 2400 Crores and Rs. 2920 crores have been made operational in 2008 under PPP. Besides,development of IGI Airport, New Delhi and CSI Airport, Mumbai with estimated cost of Rs. 8975 crores and Rs. 9802 crores respectively has been undertaken under PPP.

Unused Airports in India...

There are 32 airports belonging to Airports Authority of India (AAI) which are non-operational (Unused). They are Cuddapah, Donakonda and Warangal in Andhra Pradesh; Passighat in Arunachal Pradesh; Rupsi in Assam; Jogbani, Muzaffarpur and Raxaul in Bihar; Bilaspur in Chhattisgarh; Deesa in Gujarat; Chakulia in Jharkhand; Mysore in Karnataka; Khandwa, Panna and Satna in Madhya Pradesh; Akola, Solapur and Jalgaon in Mahrashtra; Shella in Meghalaya; Aizwal in Mizoram; Jharsuguda in Orissa; Kishangarh in Rajasthan; Vellore in Tamil Nadu; Kailashahar, Kamalpur and Khowai in Tripura; Asansol, Balurghat, Behala and Malda in West Bengal & Jhansi and Lalitpur in Uttar Pradesh. Expenditure incurred on the maintenance of some of these 32 non-operational airports during the last 3 years as well as the loss incurred at these airports are as under. The expenditure made and loss occurred (Rs. In lakhs) are in bracket:- For the year 2006-07 – Cuddapah (10.51,10.47), Jogbani (0.50, 0.50), Jharsuguda (78.77, 78.11), Kailshahar (1.24, 1.24), Vellore (6.95, 6.93), Balurghat (4.81, 4.51), Behala (24.88, 24.88) and Malda (23.07, 22.76); for 2007-08 – Cuddapah (14.50, 14.48), Jharsuguda (83.73, 83.37), Vellore (11.12, 10.81), Balurghat (10.48, 10.48), Behala (51.36, 43.64) and Malda (36.48, 36.48), and for 2008-09 – Cuddapah (42.33, 41.86), Mysore (13.88, 13.88), Jharsuguda (154.79, 154.79), Vellore (18.78, 18.79), Balurghat (10.76, 10.76), Behala (112.59, 112.59) and Malda (56.41, 56.41). Cooch Behar in West Bengal and Akola and Solapur in Maharashtra were made operational in the last three years. Mysore Airport in Karnataka will be made operational in 2009-10. This information was given by Shri Praful Patel, Minister of Civil Aviation in Lok Sabha.

Firemen declare Delhi's new airport terminal 'unsafe'

The Delhi Fire Service has declared the brand new departure terminal 1 D at the capital's Indira Gandhi International Airport (IGI) unsafe.

Delhi Fire Service chief R.C. Sharma has refused to provide a no-objection certificate (NOC) for terminal 1 D, citing many shortcomings during the two inspections conducted by his team in the past few months.

In his last report on May 13, Sharma cited six shortcomings. He said the ventilation system in the VIP lounge, baggage area and the office area was yet to be completed. Further, he stated, the exit route in the retail area should have a separate staircase or passage.

"In some places sprinklers are hidden in the false ceiling, which should be brought down. Some of the restaurants are under construction and are using wooden material. The wood works need to be painted with fire retardant chemicals. Necessary fire alarms or sprinkler system should be extended to these areas," Sharma noted in his report.

He further said systems at the new departure terminal could not be checked due to passenger movement and asked for arrangements to test the systems whenever possible.

But so far the Delhi International Airport Ltd (DIAL), a joint venture between the state-run Airports Authority of India and a consortium led by infrastructure major GMR, has not made any arrangements for the inspection of the systems.

In his report Sharma concluded that "terminal 1 D cannot be considered safe from the safety point of view till safety arrangements are fully completed."

Terminal 1 D, which is spread over 33,000 sq m, has replaced 1 B, the old terminal. It was opened for operations April 19. Kingfisher, Kingfisher Red and IndiGo, Jet Airways, JetLite and Spice Jet are operating from the new terminal, while GoAir, Air India and others are operating from terminal 1 A.

According to the airport officials, around 200 flights operate daily from the new departure terminal, which has been built at a cost of Rs.500 crore ($100 million). The terminal is able to handle 10 million passengers annually and is equipped with 72 check-in counters. It was inaugurated by Civil Aviation Minister Praful Patel.

The airport authorities had first invited the Delhi Fire Service officials April 8. At that time, the fire service wrote in its report that fire pumps and the fire control room were yet to be fully operational and that the sprinkler line was not charged with water at many places.

DIAL sent a report to the fire department May 4 stating that measures suggested had been complied with. The fire department again conducted an inspection and highlighted fresh shortcomings.

When asked why necessary clearance was not sought before the new terminal came into operation, DIAL spokesman Arun Arora said the terminal was absolutely safe for operations and for passengers.

"DIAL is very much alive to the required fire safety norms. We have been following all fire safety norms (domestic as well as international) for all equipment and procedures".

"All necessary documents have been submitted to the fire department and inspections have been carried out by the Delhi Fire Service officers. All observations and suggestions made by them were carried out by DIAL. The suggestions made by them during their subsequent visit to terminal 1 D are also being carried out," he added.

Arora said to ensure fail-proof fire safety DIAL has taken many initiatives.

"We have deputed 18 well trained firemen who keep patrolling all areas of the terminals - like the check-in area, airline ticketing areas and security holds. More than 50 fire hydrant outlets have been deployed inside and outside the terminal for greater safety," Arora said.

Though DIAL has been running the new terminal without fire safety clearances, the Delhi Fire Service was silent on why no action was being taken against the airport authorities. As per the powers conferred upon the fire department, it can cut electricity and water supplies to a building or even shut it down if the fire safety norms are not met.

Mid Year assessment of Aviation Industry...

Its exactly half of 2009, lets have a assessment of Aviation industry in India. This report has been take from IBEF : -

*Sector structure/Market size : With a growth rate of 18 per cent per annum, the Indian aviation industry is one of the fastest growing aviation industries in the world. The government's open sky policy has led to many overseas players entering the market and the industry has been growing both in terms of players and number of aircrafts. Today, private airlines account for around 75 per cent share of the domestic aviation market. India has jumped to 9th position in world's aviation market from 12th in 2006. The scheduled domestic air services are now available from 82 airports as against 75 in 2006. *Potential for Growth : The Indian Civil Aviation market grew at a compound annual growth rate (CAGR) of 18 per cent, and was worth US$ 5.6 billion in 2008. The Centre for Asia Pacific Aviation (CAPA) has forecast that domestic traffic will increase by 25 per cent to 30 per cent till 2010 and international traffic growth by 15 per cent, taking the total market to more than 100 million passengers by 2010. India's civil aviation passenger growth, presently at 20 per cent, is one of the highest in the world. By 2020, 400 million Indian passengers are likely to be airborne. By 2020, Indian airports are expected to handle more than 100 million passengers including 60 million domestic passengers and around 3.4 million tonnes of cargo per annum. Moreover, significant measures to propel growth in the civil aviation sector are on the anvil. The government plans to invest US$ 9 billion to modernise existing airports by 2010. The government is also planning to develop around 300 unused airstrips. *Airport Infrastructure : Mumbai and Delhi airports have already been privatised and are being upgraded at an estimated investment of US$ 4 billion over 2006-16.Greenfield airports are operational at Bangalore and Hyderabad. These are built by private consortia at a total investment of over US$ 800 million. A second greenfield airport being planned at Navi Mumbai is going to be developed using public-private partnership (PPP) mode at an estimated cost of US$ 2.5 billion. 35 other city airports are proposed to be upgraded. The city side development will be undertaken through PPP mode. Over the next five years, AAI has planned a massive investment of US$ 3.07 billion—43 per cent of which will be for the three metro airports in Kolkata, Chennai and Trivandrum, and the rest will go into upgrading other non-metro airports and modernising the existing aeronautical facilities. *Aviation Policy : Many policies supporting the infrastructure are now in place. 100 per cent FDI under automatic route is permissible for greenfield airports. For existing airports, FDI up to 74 per cent is permitted through automatic approvals and up to 100 per cent through special permission (from FIPB). Private developers allowed setting up of captive airstrips and general airports 150 km away from an existing airport. 100 per cent tax exemption for airport projects for a period of 10 years. 49 per cent FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies. 100 per cent equity ownership by Non-Resident Indians (NRIs) is permitted. overhaul (MRO) and training offer high investment potential. A report by Ernst & Young says the MRO category in the aviation sector can absorb up to US$ 120 billion worth of investments by 2020. 74 per cent FDI is permissible in cargo and non-scheduled airlines. The Indian government plans to set up an Airport Economic Regulatory Authority to provide a level playing field to all players. *Major Investments : Over the past year, various companies have shown an interest in the Indian aviation industry. US-based business jet maker, Hawker Beechcraft Corporation (HBC), opened its first authorised service centre in Delhi in partnership with Interglobe General Aviation with a total investment of US$ 8 million. Richard Branson, who controls UK carrier Virgin Atlantic Airways Ltd, has sought permission to start a domestic airline in India. GMR Infrastructure is looking to tap the growing corporate jet market in India with investment plans to the tune of US$ 151 million. It is also in talks with aircraft component manufacturers such as Honeywell and Safran to set up a components assembly plant in the country. The company plans to invest US$ 60 million for the proposed JV. US aircraft maker, Boeing Co, will deliver 100 planes worth US$ 17 billion over the next four to five years to India. *Road Ahead : The Indian aviation sector is likely to see clear skies ahead in the years to come. Passenger traffic is projected to grow at a CAGR of over 15 per cent in the next 5 years. The Vision 2020 statement announced by the Ministry of Civil Aviation, envisages creating infrastructure to handle 280 million passengers by 2020. Investment opportunities of US$ 110 billion envisaged up to 2020 with US$ 80 billion in new aircraft and US$ 30 billion in development of airport infrastructure. Associated areas such as maintenance, repair and

Finally the Regional Airlines...

yesterday's newspaper were full of the news regarding Regional Airlines, bt, none of them gave an insight wat is the complete scenario for that...i thought to do sm research & came up with the following-->

The Ministry of Civil Aviation has introduced a separate category of permit - Scheduled Operator Permit for Regional Airlines.

1. As per the notification of the Ministry: A separate category of operator permit will be introduced i.e., Scheduled Operator Permit for Regional Airlines. This will be applicable for both fixed wing and helicopter operators. These airlines would be called as Regional Airlines.
2. To qualify for the permit, the applicant Company should undertake operations primarily between airports of any of the four regions – North, South, West and East/North East. The airports in the region would be as defined by the Airports Authority of India for their respective regions.
3. On grounds of operational and commercial exigencies, the companies would be allowed to operate flights from airports in their designated region to all airports in any other region except the metro airports of the other region. The Regional Airlines would not be permitted to operate on Category-I routes of the Route Dispersal Guidelines.
4. For the purpose of this policy, the metro airports would be Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.
5. In view of the fact that the southern region has three metro airports, the regional airlines of the southern region would be allowed to operate between the designated metros of the southern region.
6. The Company would have to acquire at least three aircrafts within one year and at the end of two years, the Company would be required to operate with minimum five aircrafts.

The paid up capital of the Company would be:

• For aircrafts of and above 40,000 kg. take off mass upto 3 aircrafts – Rs. 30 crore. Addition of each aircraft would require additional Rs. 10 crore subject to a maximum of Rs. 50 crore after which no further enhancement of equity would be required.
• Airlines with take off mass below 40,000 kg. up to 3 aircraft – Rs. 12 crore. For further two aircrafts total paid up capital of Rs. 20 crore will be required.

Other conditions/requirements prescribed for Scheduled Operator permit would remain the same for Regional Airlines. The matter regarding Regional Airlines was being considered in view of the fact that there was a need to expand air services to the Tier II and Tier III cities to meet the unfulfilled demand for the same which the existing operators are unable to cater to for various reasons. It was felt that a separate category of Airlines mainly with smaller aircrafts might be encouraged to fill this gap and also contribute to the overall growth in the sector. In this connection it may be clarified that the existing provisions for Scheduled Operator Permit would also remain in force and such permit for unrestricted operation of scheduled flights throughout the country would be considered only for those companies which have proven financial strength and organizational capabilities to successfully manage such complex operations.

• note--> taken from Press Information Bureau press Release...

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GAGAN- reducing the Flight time

GAGAN--> GPS-satellite Aided Geo Augmentd Navigation system...as the name suggest its an airline navigation system being developed by AAI (Airport Authority of India)& ISRO (Indian Space Research Org.) in collaboration with Raytheon (US based aircraft & air defence manufacturing Co.)...this software will help in reducing the flight time significantly...after the implementation of GAGAN the signals will come frm satellite to refence stations thru-out the country which will correct them & uplink back to satellite, which will then transfer to aircrafts...Apart frm accuracy, the aircraft will plot its way thru shorter route, hence reducin flight time...its now goin under feasibility test, partly will b implemented in 2008 while completely by 2010...the present 80 air control towers will b replaced by 8 refrence towers @ Delhi, Kolkata, Guwahati, Port Blair, Ahmedabad, Bangalore, Jammu & Thiruvanantpuram (Trivendrum)...after that 8 more(if required) towers can be set up. Control center will b @Bangalore while one more @ Delhi could b set up as per requirement...shorter flight time will reduce fuel cost...the avg, fuel burn-out is 3.3kl per hour (it generally depends on the type of aircraft being used, bt here its taken as an avg. b/n A-320 & B-737)...the savings will b nearly Rs.1,25,000 per hour as the price of Jet Fuel is nearly Rs.38,000 per kl in India (as of week ending 14 Jul. 2007)...Airport charges will also fall, as it will b a major cost savin for AAI which in turn will b a cost savin 4 airlines also, as they would be payin lesser airport charges... :) Seed Newsvine Dig the Web!