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PRESENTATION
BY
TULSI KESHARWANI
DIRECTOR (AVIATION)
ASIAN INSTITUTE OF TRANSPORT DEVELOPMENT
NEW DELHI
&
ICAO CONSULTANT
SCOPE OF PRESENTATION
MODULE 1. SECTOR PROFILE
AIRLINES
AIRPORTS
INTERNATIONAL INSTITUTIONS
AIRPORTS
REGULATION
24 CIVIL ENCLAVES
80 DOMESTIC AIRPORTS
AIRPORTS AUTHORITY OF INDIA MANAGES AIR SPACE MEASURING 2.8 MILLION SQUARE
NAUTICAL MILES
ANNEXES TO CONVENTION
BILATERAL AGREEMENTS
INDIAN LEGAL INSTRUMENTS
AIRCRAFT ACT 1939
Passengers (Million)
1975 108 425 533
2006 752 1353 2105
CAGR 6.5 3.8 4.5
Passengers (Million)
1995-96 11.45 25.56 37.01
Passengers
Total 17.1 13.5
International 10.0 8.0
Domestic 20.0 13.5
Cargo
Total 13.0 9.5
International 14.0 10.0
Domestic 8.0 6.0
TECHNOLOGICAL ADVANCES IN AIRCRAFT
MANUFACTURE
INCREASE IN THE SIZE OF AIRCRAFT
HIGHER SPEED
CAN TRAVEL FROM ANY AIRPORT IN THE WORLD TO ANY OTHER AIRPORT IN THE WORLD
WITHOUT REFUELING
SIMILARLY, JET AIR & AIR SAHARA AND KING FISCHER & AIR DECCAN GOT
MERGED
TERMINAL BUILDINGS HAVE MORE SPACE AND PROVIDE IMPROVED FACILITIES TO PASSENGERS
HORIZONTAL SEPARATION IN AIRCRAFT MOVEMENT HAS BEEN REDUCED TO 500 FEET FROM 1000 FT
LIBERALIZATION IN OPERATION OF
AIRLINES
GENERAL GLOBALIZATION AND LIBERALIZATION HAS AFFECTED CIVIL AVIATION THROUGHOUT
THE WORLD
AIR CORPORATIONS ACT 1953 WHICH GAVE MONOPOLY TO STATE OWNED AIRLINES
REPEALED
NOW THEY HANDLE MORE TRAFFIC THAN GOVERNMENT OWNED AIRLINE AIR
INDIA
JET AIR IS PRESENTLY HANDLING MORE PASSENGER TRAFFIC THAN AIR INDIA
IN 1974 INTERNATIONAL AIRPORTS AUTHORITY, A CORPORATE ENTITY WAS CREATED TO MANAGE FOUR
INTERNATIONAL AIRPORTS AT MUMBAI, DELHI, KOLKATA AND CHENNAI
IN 1986 ANOTHER CORPORATE ENTITY KNOWN AS NATIONAL AIRPORTS AUTHORITY WAS CONSTITUTED TO
MANAGE OTHER AIRPORTS AND AIR TRAFFIC SERVICES
IN 1995 BOTH THE AIRPORTS AUTHORITIES WERE MERGED AND AIRPORTS AUTHORITY OF INDIA WAS
CONSTITUTED
AIRPORTS AT MUMBAI AND DELHI PRIVATIZED. COCHIN AIRPORT IS ALREADY IN PRIVATE SECTOR
REGIONAL AIRLINES
SINCE THEN MANY CHANGES HAVE TAKEN PLACE IN THE WORLD AS WELL AS IN INDIA
THIS POLICY IS UNDER CONSIDERATION FOR OVER A DECADE. SEVERAL COMMITTEES HAVE
EXAMINED THE ISSUE
AVIATION IS FAST CHANGING. IT MAY BE DESIRABLE NOT TO HAVE A WRITTEN POLICY. SUCH
POLICIES ARE LIKELY TO BECOME RIGID AND DIFFICULT TO CHANGE EASILY
LIBERALISATION OF INTERNATIONAL
SERVICES
INTERNATIONAL AIR TRANSPORT SERVICES HAVE BEEN CONSIDERABLY
LIBERALISED
THERE IS NOTHING LIKE 100% OPEN SKY POLICY IN ANY PART OF THE
WORLD
ALTHOUGH INDIA HAS SIGNED OPEN SKY POLICY WITH USA CLEARANCE
FOR JET AIRWAYS TOOK CONSIDERABLE TIME
THIS HAS RESULTED INTO TOO MUCH CAPACITY AND INTENSE COMPETITION
INTERNATIONAL AIR TRANSPORT ASSOCIATION SEES AIRLINES GLOBAL LOSS AT $ 5.2 BILLION IN
2008
IN INDIA 2007-08 LOSS IS PROJECTED AT RS. 4000 CRORES. FOR 2008-09 LOSS IS PROJECTED AT RS.
8540 CRORES
MUMBAI AND DELHI AIRPORTS HAVE BEEN PRIVATISED THROUGH LEASING ROUTE. THE
PERIOD OF LEASE IS 30 YEARS WITH PROVISION FOR EXTENSION OF ANOTHER 30 YEARS
GREENFIELD AIRPORTS AT BANGALORE AND HYDERABAD HAVE BEEN BUILT WITH PRIVATE
SECTOR PARTICIPATION AND ARE OPERATIONAL. THE CONCESSION PERIOD IS 30 YEARS
WITH PROVISION FOR EXTENSION FOR ANOTHER 30 YEARS
GOVERNMENT SHARE IN EQUITY OF LEASING COMPANY IS 26%:13% CENTRE AND 13% STATE
KOLKATA AND CHENNAI ARE TO BE DEVELOPED DIRECTLY BY AAI AS PER THE WISH OF
CONCERNED STATE GOVERNMENTS
AAI’S TRACK RECORD OF PROJECT MANAGEMENT IS NOT VERY GOOD DUE TO VARIOUS
REASONS
PLANNING PHILOSOPHY
MASTER PLAN
TRAFFIC FORECASTS
OTHER CONSIDERATIONS
ANCILLARY SERVICES
APART FROM THE AIRPORT OPERATOR THE AGENCIES INCLUDE AIRLINE OPERATORS,
REGULATORY BODIES, SECURITY AGENCIES AND CONCESSIONAIRES. THESE AGENCIES
ARE PARTNERS IN THE AIRPORT BUSINESS
MONOPOLY CHARACTER
APART FROM HIGH CAPITAL COST OF DEVELOPING THE FACILITIES, THE FIXED COST OF
MANAGEMENT IS ALSO HIGH
ESSENTIAL CHARACTERISTICS OF
AIRPORTS – (2)
THE INVESTMENT IS LUMPY
ON THE OTHER HAND AIRLINES ARE MORE FLEXIBLE AS THE AIRCRAFT ARE MOBILE
THE CONCLUSION IS THAT PLANNING FOR AIRPORTS REQUIRES GRATER CARE THAN
PLANNING FOR AIRLINES OR FOR SIMILAR OTHER BUSINESS
PLANNING PHILOSOPHY
THE MOST EFFICIENT PLAN FOR THE AIRPORT IS WHICH PROVIDES THE REQUIRED
CAPACITY AND FACILITIES IN A BALANCED MANNER FOR AIRCRAFT, PASSENGERS,
CARGO AND VEHICLE MOVEMENTS, WITH MAXIMUM CONVENIENCE TO PASSENGERS,
OPERATORS, STAFF AND OTHER USERS AT LOWEST CAPITAL AND OPERATING COSTS
MODERN DAY AIRPORTS ARE BECOMING COMMERCIAL COMPLEXES. THESE ARE ALSO
REQUIRED TO BE TAKEN CARE OFF
DETERMINE GROSS FACILITY REQUIREMENTS AND PRELIMINARY TIME-PHASED DEVELOPMENT OF THE SAME
TREND ANALYSIS
ECONOMETRIC ANALYSIS
INDUSTRY SURVEY AND JUDGMENTAL
FOR AIRPORT PLANNING IT IS NOT THE HIGHEST PEAK BUT 30TH OR 40TH
PEAK
OTHER CONSIDERATIONS
ALTERNATE AIRPORTS IN THE REGION: EXISTING AND PROPOSED
SELECTION OF SITE
WATER SUPPLY
ELECTRIC SUPPLY
SEWERAGE
CONSERVANCY SERVICES
THESE DAYS RAIL CONNECTION IS BEING DISCUSSED. THIS OPTION SHOULD BE CONSIDERED FOR
LARGER AIRPORTS
THESE DAYS AIRPORTS ARE ALSO MAKING CONTRIBUTION FOR PROVIDING GOOD ACCESS
THIS ASPECT WILL HAVE TO BE CLEARLY SPELT OUT IN THE NOTICE INVITING BIDS
WHERE IT IS ALLOWED AS A SECOND AIRPORT IN THE SAME CITY OR CLOSE VICINITY, THE
PARAMETERS FOR DISTRIBUTION OF TRAFFIC BETWEEN THE TWO AIRPORTS WILL BE
CLEARLY SPELT OUT
THE PROMOTER AFTER PRELIMINARY CLEARANCE OF MINISTRY OF CIVIL AVIATION WILL COMMISSION A
PRE-FEASIBILITY STUDY TO ASSESS THE OVERALL POTENTIAL OF THE PROJECT
THE PROMOTER SHALL SUBMIT THE PRE-FEASIBILITY REPORT TO THE MINISTRY FOR FURTHER APPROVAL
BASED ON PRE-FEASIBILITY STUDY THE PROMOTER SHALL AGAIN APPROACH THE CENTRAL GOVERNMENT
FOR PRELIMINARY CLEARANCE FOR UNDERTAKING A DETAILED FEASIBILITY STUDY
THE TECHNO-ECONOMIC FEASIBILITY REPORT WILL BE SUBMITTED TO THE MINISTRY FOR APPROVAL
POLICY GUIDELINES FOR SETTING
UP GREENFIELD AIRPORT (3)
SITE SELECTION WILL BE UNDERTAKEN BY THE PROMOTER AT PRE-FEASIBILITY STAGE IN
CONSULTATION WITH DGCA, AIRPORTS AUTHORITY OF INDIA, MINISTRY OF ENVIRONMENT &
FORESTS AND MINISTRY OF DEFENCE
THE CENTRAL GOVERNMENT WILL THEN GO AHEAD TO DEVELOP DETAILED DESIGN OF THE
PROJECT
THE STATE GOVERNMENT/PROMOTER SHALL SET UP SPECIAL PURPOSE VEHICLE WHOLLY OWNED
BY IT
AFTER THE SELECTION OF SUCCESSFUL BIDDERS, THE PRIVATE INVESTOR WILL BE INDUCTED IN
THE SPV WITH 74 PERCENT EQUITY SHARES
POLICY GUIDELINES FOR SETTING
UP GREENFIELD AIRPORT (4)
THE STATE GOVERNMENT AS A PRIMARY PROMOTER MAY CONSIDER JOINT
VENTURE WITH PRIVATE INVESTORS THROUGH PPP MODEL
IN THE CASE OF NAVI MUMBAI AIRPORT THESE PROCEDURES ARE BEING FOLLOWED
TRAFFIC FORECAST FOR
GREENFIELD AIRPORT
THE TRAFFIC FOR A NEW GREENFIELD AIRPORT WITH THE EXISTING
AIRPORT CONTINUING TO OPERATE WILL BE DETERMINED BY
DIVERTED TRAFFIC
THIS ISSUE AROSE WHEN NEW GREENFIELD AIRPORTS WERE BEING PLANNED AT
BANGALORE AND HYDERABAD. IT WAS DECIDED TO CLOSE THE OLD EXISTING
AIRPORT WHEN THE NEW AIRPORT COMMENCED OPERATIONS
THE RATIONALE BEHIND THIS DECISION WAS THAT BOTH AIRPORTS WILL NOT BE
FINANCIALLY VIABLE
TIME IS COMING WHEN WE WILL HAVE MORE THAN ONE AIRPORT IN A CITY
HAVING MORE THAN ONE AIRPORT WILL RAISE SEVERAL ISSUES WHICH WILL NEED
TO BE TACKLED
GLOBAL PRACTICES FOR DUAL,
MULTIPLE AIRPORTS
MOST OF THE CITIES IN THE WORLD HAVE SINGLE AIRPORTS
CHINA PEARL DELTA REGION: GUANGZHOU, HONG KONG, BAIYUN, SHENZHEN, MACAU AND
ZHUHAI
JUHU AIRPORT IN MUMBAI WAS CLOSED FOR SCHEDULED OPERATIONS WHEN SANTA CRUZ
WAS DEVELOPED
OLD HONG KONG AIRPORT WAS CLOSED WHEN NEW AIRPORT WAS CLOSED
OLD DON MUANG BANGKOK AIRPORT WAS CLOSED WHEN NEW AIRPORT SUBARNABHUMI
WAS COMMISSIONED ALTHOUGH OPENING OF THE OLD AIRPORT IS BEING RECONSIDERED
OLD SINGAPORE AIRPORT WAS CLOSED WHEN NEW AIRPORT WAS COMMISSIONED
OLD AIRPORT IN SEOUL WAS CLOSED WHEN NEW AIRPORT WAS COMMISSIONED
EXISTING HYDERABAD AND BANGALORE AIRPORTS WILL HAVE BEEN CLOSED AFTER NEW
AIRPORTS OPENED
RATIONALE BEHIND DUAL OR
MULTIPLE AIRPORTS
HISTORICAL. NOT WELL PLANNED
AIRLINES MAY BE RELUCTANT TO MOVE TO THE NEW AIRPORT. THIS NEEDS TO BE TAKEN INTO
ACCOUNT
GROWTH IN TRAFFIC
DETAILED SURVEY OF THE HINTERLAND OF THE NEW AIRPORT AND ORIGIN DESTINATION SURVEY
OF THE TRAFFIC AT EXISTING AIRPORT WILL HELP
GOVERNMENT FUNDING
LANDING CHARGES
PARKING CHARGES
CARGO CHARGES
SECURITY CHARGES
CAR PARKING
THE LIKE UNIFORM CONDITIONS SHALL APPLY TO THE USE, BY AIRCRAFT OF EVERY CONTRACTING
STATE, OF ALL AIR NAVIGATION FACILITIES, INCLUDING RADIO AND METEOROLOGICAL SERVICES,
WHICH MAY BE PROVIDED FOR PUBLIC USE FOR THE SAFETY AND EXPEDITION OF AIR NAVIGATION.
ANY CHARGES THAT MAY BE IMPOSED OR PERMITTED TO BE IMPOSED BY A CONTRACTING STATE FOR
THE USE OF SUCH AIRPORTS AND AIR NAVIGATION FACILITIES BY THE AIRCRAFT OF ANY OTHER
CONTRACTING STATE SHALL NOT BE HIGHER,
AS TO AIRCRAFT NOT ENGAGED IN SCHEDULED INTERNATIONAL SERVICES, THAN THOSE THAT WOULD
BE PAID BY ITS NATIONAL AIRCRAFT OF THE SAME CLASS ENGAGED IN SIMILAR OPERATIONS, AND
AS TO AIRCRAFT ENGAGED IN SCHEDULED INTERNATIONAL AIR SERVICES, THAN THOSE THAT WOULD
BE PAID BY ITS NATIONAL AIRCRAFT ENGAGED IN SIMILAR INTERNATIONAL AIR SERVICES.
NO FEES, DUES OR OTHER CHARGES SHALL BE IMPOSED BY ANY CONTRACTING STATE IN RESPECT
SOLELY OF THE RIGHT OF TRANSIT OVER OR ENTRY INTO OR EXIT FROM ITS TERRITORY OF ANY
AIRCRAFT OF A CONTRACTING STATE OR PERSONS OR PROPERTY THEREON.
ICAO PRINCIPLES FOR FIXATION OF
AIRPORT CHARGES
LEGAL STATUS
ORGANISATIONAL STRUCTURE
SECRETARIAT
INTERNATIONAL MEETINGS
ICAO PUBLICATIONS
ESTABLISHMENT OF INTERNATIONAL
CIVIL AVIATION ORGANIZATION
INTERNATIONAL CIVIL AVIATION ORGANIZATION, IN SHORT ICAO, IS A
WORLDWIDE INTERGOVERNMENTAL ORGANISATION ESTABLISHED IN
THE YEAR 1944.
IN THE MEETING OF THE ASSEMBLY HIGH RANKING OFFICIALS FROM ALL OVER
THE WORLD PARTICIPATE. THE LAST ASSEMBLY WAS IN SEPTEMBER 2007
OVER THE YEARS, THE ICAO COUNCIL HAS DEVELOPED AND ADOPTED 18
TECHNICAL ANNEXES TO THE CHICAGO CONVENTION, DEALING WITH VARIOUS
SUBJECTS