Contents

 History of Indian Civil Aviation

 Evolution of Civil Aviation Sector in India
 Ministry of Civil Aviation
 Indian Airports Traffic: Passenger Traffic
 Economic Benefits of Civil Aviation
 Review of Civil Aviation Sector in 11th Five-year Plan
 Civil Aviation in 12th Five-year plan
 Present Scenario of Aviation sector in India
 Major airports in India
 List of operational Airline services in India
 List of Defunct Airline services in India
 Profile of Major airline service providers in India

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 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

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 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

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.

Evolution of Civil Aviation Sector in India

Chronology of Events of Indian Civil Aviation Sector

1911, Feburary 18: First commercial flight from Allahabad to Naini made by a French pilot

Monseigneur Piguet covering about 10 km and carrying 6500 mails on a Humber biplane. This is the

world’s first airmail service and the beginning of civil aviation in India.

1912, December: The first domestic air route between Karachi and Delhi was opened by the Indian

State Air services in collaboration with Imperial Airways, UK.

1915: The first Indian airline, Tata Sons Ltd., started a regular airmail service between Karachi and

Madras without any patronage from the government.

1920, January 24: Royal Airforce started regular airmail services between Karachi and Bombay.

1924: Construction of civil airports began in India. Construction began at Dum Dum in Calcutta,

Bamrauli in Allahabad and Gilbert Hill in Bombay.

1927, April: Department of Civil Aviation was set up to look after all civil aviation matters. Aero Club

of India was also established.

1932: Tata Airlines came into being as a division of Tata Sons Limited. It started Air Mail services on

the Karachi, Ahmedabad, Bombay, Bellary, Madras routes on 15 October 1932.

Between 1933 and 1934: Number of Indian airlines – Indian Trans Continental Airways, Madras Air

Taxi Services, Indian National Airways etc. commenced operations.

1937: The Indian Aircraft Act was promulgated in 1934 and was formulated in 1937.

1940: Hindustan Aeronautics Limited (HAL) was set up by Walchand Hirachand in association with

the then Mysore Government at Bangalore.

1941, July: India’s first aircraft, the Harlow trainer was rolled out for test flight in July 1941.

1945: Deccan Airways was founded – jointly owned by the Nizam of Hyderabad and Tatas. Its first

flight began in July 1946.

1946: ‘Air India’ came into being when Tata Airlines changed its name to Air India.

1947: At the time of Independence, Nine Air Transport Companies were operational. Later the

number reduced to eight when the Orient Airways shifted its base to Pakistan. The then operational

airlines were Tata Airlines, Indian National Airways, Air Service of India, Deccan Airways, Ambica

Airways, Bharat Airways and Mistry Airways. These airlines were operating within and beyond the

frontiers of the company, carrying both air cargo and passengers.

1948: Air India signed an agreement with the Government to operate international services under

the name Air India International Ltd. On June 8, Air India inaugurated its international services with a

weekly flight between Bombay and London via Cairo and Geneva.

1953, March: The Indian Parliament passed the Air Corporations Act, 1953 and Indian Airlines and Air

India International were set up after nationalisation of the entire airline industry. Eight formerly

independent domestic airlines: Deccan Airways, Airways India, Bharat Airways, Himalyan Aviation,

Kalinga Air Lines, Indian National Airways, Air India, Air Services of India were merged.

1953: Civil Helicopter Services were introduced in the country

1972: The International Airports Authority of India (IAAI) was constituted.

1981: Vayudoot Airlines (a Government Owned Airline Company) started operations.

1985: Pawan Hans Helicopters Limited (PHHL) and Indira Gandhi Rashtriya Uran Academy (IGRUA) in

Fursatganj, Rai Bareli in Uttar Pradesh for training of pilots were established.

1986: The National Airports Authority was constituted.

1987: The Bureau of Civil Aviation Security was established.

1990, April: The Government adopted Open-sky policy and allowed air taxi- operators to operate

flights from any airport, both on a charter and on a non-charter basis and to decide their own flight

schedules, cargo and passenger fares. East-West Airlines was the first national private airline to

operate in the country after almost 37 years.

1991, September 20: Sahara Airlines started its operations.

1993, May: Jet Airways started its operations.

1994, March 1: Air Corporations Act, 1953 was repealed and was replaced by Air Corporations

(Transfer of Undertaking and Repeal) Act, 1994 thus enabling private operators to operate scheduled
services and number of private players including Jet Airways, Air Sahara, Modiluft Airlines, Damania

Airways, NEPC Airlines and East West Airlines commenced domestic operations.

1995: India’s six private airlines accounted for more than 10% of domestic traffic. Many foreign

airlines started providing international services. In 1995, 42 airlines operated air services to, from,

and through India.

1995, April 1: Airport Authority of India was constituted by merging the International Airport

Authority of India with National Airports Authority.

1997: Policy on Airport Infrastructure of India was developed for the use and development of airport

infrastructure.

1999, June 10: CIAL Airport was the first airport in India which was built with public-private

participation and was made operational. The process for development of CIAL as a private airport

began in 1993.

2000, October 2: Sahara Airlines was rebranded as Air Sahara.

2003: Entry of low cost carriers. Air Deccan started its services

2004: Government approved setting up of private Greenfield airports at Hyderabad and Bangalore.

2004, June: Low Cost Carrier – GoAir started it operations.

2004, December: Indian Scheduled carriers with a minimum of 5 years of continuous operations and

a minimum fleet size of 20 aircraft, were permitted to operate scheduled services to international

destinations.

2005: Indian Airlines was rebranded as Indian. The Government Designated Air India, Indian Airlines,

Jet Airways and Air Sahara to operate international services.

2005, May: Kingfisher Airlines (Full Service Carrier) and Spice Jet (Low Cost Carrier) commenced

operations.
2006, August: Low Cost Carrier – Indigo started its operations.

2006: The government approved the restructuring and modernisation of Mumbai and Delhi

brownfield airports through the public-private partnership model.

2007: The Regional Airlines Policy was announced wherein licenses were given for operation of

airlines within a region.

2007: Indian aviation saw three mergers:

1. AI-IA merged and was cleared by Empowered Group of Ministers on February 21,
2007.The Cabinet approved it on March 1, 2007 and was effective from August.
2. Jet Airways acquired Air Sahara for Rs 1,450 cr on April 13, 2007.Air Sahara was renamed
JetLite.
3. Kingfisher Airlines acquired Air Deccan for Rs 550 cr on June 2007. In October 2007, Air
Deccan was renamed Simplifly Deccan and the old logo was substituted by the Kingfisher
logo.
2008, April 24: The path breaking Greenfield Airport Policy of the Government was announced.

2008, August: Simplifly Deccan was renamed as Kingfisher Red.

2009, May 12: AERA was established to regulate the economic aspects of airports. It is an

autonomous body set up by an Act of Parliament.

2010: Airport Economic Regulatory Authority Appellate Tribunal (AERAAT) was established.

Ministry of Civil Aviation

Vision of Ministry of Civil Aviation

“Enable the people to have access to safe, secure, sustainable and affordable air connectivity

services with World-Class Civil Aviation Infrastructure.”

Mission Ministry of Civil Aviation

 To create world-class Civil Aviation Infrastructure facilities.

 To establish effective regulatory framework, including for safety, in harmony with
 international standards.
  To connect presently un-served areas.
 To develop skilled human resource according to the needs of the sector.
 To deploy advanced technologies for the optimal growth of the sector.
 To ensure maximum satisfaction of users / optimize consumer satisfaction

Located at Rajiv Gandhi Bhavan at the Safdarjung Airport in New Delhi, the Ministry of Civil Aviation

is responsible for formulation of national policies and programmes for the development and

regulation of the Civil Aviation sector in the country. It is responsible for the administration of the

Aircraft Act, 1934, Aircraft Rules, 1937 and various other legislations pertaining to the aviation sector

in the country. This Ministry exercises administrative control over attached and autonomous

organizations like the Directorate General of Civil Aviation, Bureau of Civil Aviation Security and Indira

Gandhi Rashtriya Udan Academy and affiliated Public-Sector Undertakings like National Aviation

Company of India Limited, Airports Authority of India and Pawan Hans Helicopters Limited. The

Commission of Railway Safety, which is responsible for safety in rail travel and operations in terms of

the provisions of the Railways Act, 1989 also comes under the administrative control of this Ministry.

Honourable Minister of Civil Aviation

Shri P.Ashok Gajapathi Raju, Son of Late Shri P.V.G.Raju, Rajah Saheb of Vizianagaram was born on

26th June, 1951. He was educated at Scindia School, Gwalior; Lovedale School, Ooty; Hyderabad

Public School, Hyderabad and V.S.Krishna College Visakhapatnam. He is married to Suneela and has

two daughters. He was a member of Andhra Pradesh State legislature for over twenty-five years and

was a Minister in the Govt. of A.P., for thirteen years holding the portfolios of Commercial Tax, Excise,

Legislative affairs, Finance, Planning and Revenue.

Influenced by socialism and moved by the deplorable condition of the people, both socially and

economically, he joined politics to serve the people. He took an active part in the struggle for the

formation of a new district viz. Vizianagaram. His interest to improve education in the district led to
the establishment of several governmental and non-governmental educational institutions. Presently

he is Vice-Chairman of a trust The Maharaja Alak Narayana Society of Arts and Science (MANSAS)

which is running twelve educational institutions in the district. As a Minister, he was associated with

several developmental activities. He is keenly interested in the field of public health and the

conservation of water and electricity. In pursuance of this ideal, he launched housing, drinking water

and health schemes. He has traveled abroad to study town planning and to implement it suitably in

Andhra Pradesh. He is a former President of Andhra Cricket Association. His efforts resulted in the

establishment of several centres for imparting training in several sports at many places including

Hyderabad, Visakhapatnam and Vizianagaram.

Attached-Autonomous Organisations

Directorate General of Civil Aviation (DGCA)

The Directorate General of Civil Aviation (DGCA) is the regulatory body in the field of Civil Aviation,

primarily dealing with safety issues. It is responsible for regulation of air transport services

to/from/within India and for enforcement of civil air regulations, air safety, and airworthiness

standards. The DGCA also co-ordinates all regulatory functions with the International Civil Aviation

Organisation (ICAO).

Private operators were allowed to provide air transport services. However, no foreign airline could

directly or indirectly hold equity in a domestic airline company. By 1995, several private airlines had

ventured into the aviation business and accounted for more than 10 percent of the domestic air

traffic. Today, Indian aviation industry is dominated by private airlines and these include low cost

carriers, who have made air travel affordable. The Government nationalized nine airline companies

vide the Air Corporations Act, 1953. These government-owned airlines dominated Indian aviation

industry till the mid-1990s. In April 1990, the Government adopted open-sky policy and allowed air

taxi- operators to operate flights from any airport, both on a charter and a non charter basis and to

decide their own flight schedules, cargo and passenger fares. As part of its open sky policy in 1994,
the Indian Government ended the monopoly of IA and AI in the air transport services. Private

operators could provide air transport services. However, no foreign airline could directly or indirectly

hold equity in a domestic airline company. By 1995, several private airlines had ventured into the

aviation business and accounted for more than 10 percent of the domestic air traffic. Today, Indian

aviation industry is dominated by private airlines and these include low cost carriers, who have made

air travel affordable.

 Registration of civil aircraft;

 Formulation of standards of airworthiness for civil aircraft registered in India and grant of

certificates of airworthiness to such aircraft

 Licensing of pilots, aircraft maintenance engineers and flight engineers, and conducting

examinations and checks for that purpose;

 Licensing of air traffic controllers
 Certification of aerodromes and CNS/ATM facilities;
 Granting of Air Operator's Certificates to Indian carriers and regulation of air transport

services operating to/from/within/over India by Indian and foreign operators, including

clearance of scheduled and non-scheduled flights of such operators;

 Conducting investigation into accidents/incidents and taking accident prevention measures

including formulation of implementation of Safety Aviation Management programmes.

 Carrying out amendments to the Aircraft Act, the Aircraft Rules and the Civil Aviation

Requirements for complying with the amendments to ICAO Annexes, and initiating proposals

for amendment to any other Act or for passing a new Act in order to give effect to an

international Convention or amendment to an existing Convention;

 Coordination at national level for flexi-use of air space by civil and military air traffic agencies

and interaction with ICAO for provision of more air routes for civil use through Indian air

space;
 Keeping a check on aircraft noise and engine emissions in accordance with ICAO Annex 16

and collaborating with the environmental authorities in this matter, if required;

 Promoting indigenous design and manufacture of aircraft and aircraft components by acting

as a catalytic agent;
 Approving training programmes of operators for carriage of dangerous goods, issuing

authorizations for carriage of dangerous goods, etc.

Bureau of Civil Aviation Security – BCAS

The Bureau of Civil Aviation Security (BCAS) was initially set up as a Cell in the DGCA in January 1978

on the recommendation of the Pande Committee. The BCAS was reorganized into an independent

department under the Ministry of Civil Aviation on 1st April, 1987. The main responsibilities of BCAS

include laying down standards and measures with respect to security of civil flights at international

and domestic airports in India. BCAS Head quarter is located at "A" Wing, I-III floor, Janpath Bhavan,

Janpath, New Delhi-110001. It has got four Regional Offices located at International airports i.e.

Delhi, Mumbai, Kolkata and Chennai.

 Laying down Aviation Security Standards in accordance with Annex 17 to Chicago Convention

of ICAO for airport operators, airlines operators, and their security agencies responsible for

implementing AVSEC measures

 Monitoring the implementation of security rules and regulations and carrying out survey of

security needs.
 Ensure that the persons implementing security controls are appropriately trained and

possess all competencies required to perform their duties.

 Planning and coordination of Aviation security matters.
 Surprise/Dummy checks to test professional efficiency and alertness of security staff.
 Mock exercise to test efficacy of Contingency Plans and operational preparedness of the

various agencies.

Commission of Railway Safety - CRS

The Commission of Railway Safety (CRS), working under the administrative control of the Ministry of

Civil Aviation of the Government of India, deals with matters pertaining to safety of rail travel and

train operation and is charged with certain statutory functions as laid down in the Railways Act

(1989), which are of an inspectorial, investigatory & advisory nature. The Commission functions

according to certain rules viz. statutory investigation into accidents rules framed under the Railways

Act and executive instructions issued from time to time. The most important duties of the

Commission is to ensure that any new Railway line to be opened for passenger traffic should conform
to the standards and specifications prescribed by the Ministry of Railways and the new line is safe in

all respects for carrying of passenger traffic. This is also applicable to other works such as gauge

conversion, doubling of lines and electrification of existing lines. Commission also conducts statutory

inquiry into serious train accidents occurring on the Indian Railways and makes recommendations for

improving safety on the Railways in India.

Air India Ltd

Air India Ltd. was incorporated under the Companies Act 1956 on 30 March 2007 and is owned by

the Government of India. The Company was created to facilitate the merger of the two main state-

owned airlines in India: Air India, with its subsidiary Air-India Express and Indian Airlines, together

with its subsidiary Alliance Air.

 Hotel Corporation of India Limited

 Air India Air Transport Services Limited
 Air India Engineering Services Limited
 Air India Charters Limited
 IAL Airport Services Limited
 Airline Allied Services Limited
 Vayudoot Limited

Airports Authority of India (AAI)

The Airports Authority of India was formed on 1st April 1995 by merging the International Airports

Authority of India and the National Airports Authority with a view to accelerate the integrated

development, expansion, and modernization of the operational, terminal and cargo facilities at the

airports in the country conforming to international standards.

 Design, Development, Operation and Maintenance of international and domestic airports

and civil enclaves.

 Control and Management of the Indian airspace extending beyond the territorial limits of the

country, as accepted by ICAO.

 Construction, Modification and Management of passenger terminals.
  Development and Management of cargo terminals at international and domestic airports.
 Provision of passenger facilities and information system at the passenger terminals at

airports.
 Expansion and strengthening of operation area, viz. Runways, Aprons, Taxiway etc.
 Provision of visual aids.
 Provision of Communication and Navigation aids, viz. ILS, DVOR, DME, Radar etc.

Pawan Hans Helicopters Ltd. - PHHL

The Pawan Hans Helicopters Ltd. (PHHL) is one of the leading helicopter companies in India and is

known for its reliable helicopter operations. Its objective is to provide helicopter support services to

the Oil Sector for its off-shore exploration operations, services in remote and hilly areas as well as

charter services for promotion of travel and tourism. The Registered Office of the Company is located

at New Delhi and its Regional offices are at Mumbai and New Delhi. PHHL is the first ISO 9001: 2000

certified Aviation Company in India. Pawan Hans has played a vital role in the growth story of the

Helicopter Industry in India.

Indian Airports Traffic: Passenger Traffic

Passenger Traffic (in Millions) Passenger Traffic Growth Y-o-Y in %

Year
International Domestic Total International Domestic Total
2007-08 29.8 87.1 116.9 15.2 23.3 21.1
2008-09 31.6 77.3 108.9 5.9 -11.2 -6.8
2009-10 34.4 89.4 123.8 8.8 15.6 13.7
2010-11 37.9 105.5 143.4 10.3 18.1 15.9
2011-12 40.8 121.5 162.3 7.6 15.1 13.2
2012-13 43.0 116.4 159.4 5.5 -4.2 -1.8
2013-14 46.6 122.3 168.9 8.3 5.1 6.0
2014-15 50.8 139.3 190.1 9.0 13.9 12.6
2015-16 54.7 168.9 223.6 7.7 21.2 17.6
2016-17
Source: Airports Authority of India, Traffic News
Indian Airports Traffic: Air Traffic Movement

Aircraft Movement (in ’000s) Aircraft Movement Growth Y-o-Y in %

Year
Domestic Total International Domestic Total Domestic
2007-08 249 1059 1308 15.3 22.9 249
2008-09 270 1036 1307 8.8 -2.2 270
2009-10 282 1049 1331 4.4 1.2 282
2010-11 300 1094 1394 6.4 4.3 300
2011-12 309 1235 1545 3.0 13.0 309
2012-13 314 1165 1479 1.5 -5.7 314
2013-14 336 1201 1537 7.0 3.1 336
2014-15 345 1258 1603 2.8 4.7 345
2015-16 375 1418 1794 8.7 12.8 375
2016-17
Source: Airports Authority of India, Traffic News
Indian Airports Traffic: Cargo Traffic

Cargo (in Million Tonnes) Cargo Traffic Growth Y-o-Y in %

Year
Domestic Total International Domestic Total Domestic
2007-08 1.15 0.57 1.71 12.3 7.3 1.15
2008-09 1.15 0.55 1.70 0.3 -2.8 1.15
2009-10 1.27 0.69 1.96 10.5 24.8 1.27
2010-11 1.50 0.85 2.35 17.7 23.8 1.50
2011-12 1.47 0.81 2.28 -1.9 -4.8 1.47
2012-13 1.41 0.78 2.19 -4.2 -3.4 1.41
2013-14 1.44 0.84 2.28 2.6 6.6 1.44
2014-15 1.54 0.99 2.53 6.9 17.8 1.54
2015-16 1.66 1.05 2.70 7.5 6.2 1.66
2016-17
Source: Airports Authority of India, Traffic News
Economic Benefits of Civil Aviation

The aviation's role in the modern global economy. Generating wealth and employment from aviation

is supported through its own activities and supply chains (direct and indirect) and is an enabler of

other industries (induced and tourism catalytic). The total economic impact of the aviation industry is

some 3.5 per cent of the world's GDP, USD 2.7 trillion, which supports 62.7 million jobs worldwide.

Direct Impact on Economy

The aviation industry itself is a source of considerable economic activity, creating jobs that directly

serve passengers at airlines, airports and air navigation services providers. These include check-in,

baggage handling, onsite retail, cargo and catering facilities. Moreover, aviation directly enables jobs

in the manufacturing sector (those companies that produce aircraft, engines and other vital

technologies). To transport 3.8 billion passengers to destinations all over the globe and carry 53

million tonnes of freight, the aviation industry generated 9.9 million direct jobs and added USD 664.4

billion to world GDP (0.87%). This is about 70 per cent of the size of the automotive industry, which

accounts for 1.2 per cent of global GDP. Aviation is also one of the most efficient sectors measured in

terms of GDP per worker. At USD 65 per worker per year, this is around three and a half times the

average across the world economy, exceeding most other sectors of the economy. Air transport

employees are highly skilled, trained and experienced.

In direct Impact on Economy

The economic benefits of aviation extend much further than the industry’s direct impacts. The

indirect impacts include employment and economic activity generated by suppliers to the aviation

industry: aviation fuel suppliers; construction companies that build airport facilities; suppliers of sub-

components used in aircraft; manufacturers of goods sold in airport retail outlets; and a wide variety

of activities in the business services sector (such as call centres, information technology and
accountancy). Over 11 million indirect jobs are supported globally through the purchase of goods

and services by companies in the aviation industry. These indirect jobs contributed approximately

USD 761 billion to global economic activity in 2016.

Induced Impacts on Economy

The spending of those directly or indirectly employed in the aviation sector supports additional jobs

in other sectors such as retail outlets, companies producing consumer goods and a range of service

industries (for example, banks, telecommunication providers and restaurants). Worldwide, over five

million induced jobs are supported globally through employees in the aviation industry (whether

direct or indirect) using their income to purchase goods and services for their own consumption.

Furthermore, aviation's impact on other industries improves the efficiencies in a wide spectrum of

economic activities, for example: offers just-in-time delivery systems in the supply chains; enables

international investments into and out of countries and regions; and supports innovations by

encouraging effective networking and collaboration between organizations located in different parts

of the globe. Good air transport links influence where companies choose to invest. According to a

survey, 56 per cent of companies consider international transport links to be an essential factor in

where to locate a business in Europe.

Aviation Supports Tourism

Air transport activities affect multiple sectors of the economy, especially tourism. The connectivity

brought by air transport is at the heart of tourism development, providing substantial economic

benefits for all those involved in the tourism value chain. Currently, approximately 1.2 billion tourists

are crossing borders every year, over half of whom arrived at their destinations by air. In 2016,

tourism supported a total of 292.2 million direct, indirect and induced jobs globally and made up

10.2 percent of world GDP, a total of USD 7.6 trillion. Through a synergetic relationship, aviation

supports over 36 million jobs within the tourism sector, contributing roughly USD 892 billion a year

to global GDP. Tourism-related GDP is projected to grow 4.0 per cent annually over the next decade,
compared to 2.7 per cent growth of global GDP. Spending by international tourists is classified as

visitor exports and accounted for over 5 per cent of world trade. Tourism in many countries is a main

source of foreign exchange earnings. Particularly for Least Developed Countries (LDCs), Landlocked

Developing Countries (LLDCs) and Small Island Developing States (SIDS), tourism is often one of the

few activities, for which their location, coupled with exceptional natural and cultural resources, is a

strong competitive advantage. Part of foreign exchange earnings do trickle down to different groups

of a given society. If tourism is managed with a strong focus on poverty alleviation, it can have a

positive impact on reducing poverty levels through employment of local people in tourism

enterprises, goods and services provided to tourists, or the running of small and community-based

enterprises, etc. The graduation of Cabo Verde (2007), Maldives (2011) and Samoa (2014) from LDC

status was driven by the strong growth and performance of tourism. Business tourism, specifically

meetings, incentives, conferences and exhibitions (MICE) activity, relies significantly on the

availability of air travel and can generate a bigger economic impact because business travellers spend

more, at least per day, than leisure visitors do. In addition to the expected benefits in the hotel,

restaurant, and retail sectors, tourism also fosters growth in industries as varied as agriculture,

business services, construction, and real estate.

A Driver of Global Trade and E-commerce

As a trade facilitator, aviation increases the global reach of businesses, enabling them to get products

to market in a more convenient and quicker way. It allows businesses to be more responsive to the

needs of customers and improves communication between buyers and sellers, including just-in-time

inventory management and build-to order production. Lower transport costs and improved

connectivity have boosted trade flows by globalizing supply chains and associated investments. The

availability of air transport allows especially LDCs, LLDCs and SIDS to overcome infrequent boat

services or poor infrastructure for ground transportation. Air cargo service routes are regarded as

regional lifelines for these areas. Although the demand for air freight is limited by cost, which is
typically 4 to 5 times that of road transport and 12 to 16 times that of sea transport, the

commodities shipped by air are those that have high value per unit density. Air freight constitutes

34.6 per cent of world trade by value, and total value of transported goods of USD 6.4 trillion,

despite representing only 0 .5 per cent by volume. In 2016, air freight carried on scheduled services

grew to 34 million tonnes internationally and 53 million tonnes overall, in line with improving

economic prospects, greater industrial production, and more confident consumers. Aviation’s speed

and reliability has contributed to the market for “same-day” and “next-day” delivery services and

transportation of urgent or time-sensitive goods, giving it an advantage over other modes of

transport. High value electrical components and perishable products such as food and flowers, are

transported all over the world through the efforts of cargo integrators, providing steady employment

and economic growth to regions benefiting from such trade. Driven by advances in internet business,

e-commerce is increasingly influencing the way enterprises interact among themselves, and with

consumers and governments. It can be a catalyst for the transition of trade transactions involving

micro, small and medium-sized enterprises (MSMEs) from the informal to the formal sector and from

domestic to international markets. Some 87 per cent of B2C (business-to-consumer) ecommerce

parcels are currently carried by air. The ecommerce share of scheduled international mail tonne

kilometres (MTKs) grew from 16 per cent to 83 per cent between 2010 and 2016 and is estimated to

grow to 91 percent by 2025.

Review of Civil Aviation Sector in 11th Five-year Plan

The Eleventh Plan aimed to provide world class infrastructure for safe, reliable, and affordable air

services to encourage growth in passenger and cargo traffic, and air connectivity to remote and

inaccessible areas with special reference to North Eastern part of the country.

Against an investment target of 49,267.00 crore comprising of 1,900.00 crore as budgetary support

and 47,367.00 crores as IEBR, the anticipated expenditure during Eleventh Plan period is 44,124.00

crore comprising of IEBR of 39,571.11 crore and budgetary support of 4,552.89 crore. Thus, there
would be a shortfall of 5,143.00 crore (10.44 per cent) in utilisation of the approved outlay. The

anticipated utilisation under budgetary support would be 239.63 per cent and 83.54 per cent under

IEBR. The Indian civil aviation industry managed to exhibit resilience in face of the recent global

economic slowdown. Both passenger and cargo traffic have shown robust growth and there has been

modernisation and augmentation of capacities, in a major way, at various metro and non-metro

airports. Some of the key developments during last five years include the following:

 India has become the ninth largest civil aviation market in the world;
 Passenger handling capacity has risen three folds from 72 million (FY 06) to over 220 million

(FY 11);
 Cargo handling capacity has risen from 0.5 million MT (FY 06) to 3.3 million MT (FY 11);
 Connectivity to North Eastern region has risen from 87 flights per week to 286 flights per

week;
 Four international airport projects were successfully completed through the public-private

partnership (PPP) mode, viz. greenfield development of Hyderabad and Bengaluru

international airports and modernisation of Delhi and Mumbai international airports;

 The Airport Economic Regulatory Authority (AERA) was established to safeguard the interests

of users and service providers at Indian airports; and

 As of now five Indian carriers are operating on international routes.

Development of Airports During the 11th Five-year Plan

The Private sector played an unprecedented role during the Eleventh Plan in airport development.

Five international airport projects were successfully completed through the public–private

partnership (PPP) mode, viz. greenfield development of Hyderabad and Bengaluru international

airports and modernisation of Kochi, Delhi and Mumbai international airports. Total investment

made by private airport operators in the last five years was to the tune of `30,000 crore. Along with

the private sector, Airport Authority of India (AAI) has continued to create airport infrastructure at a

rapid pace incurring an expenditure of 12,500 crores during the Eleventh Plan. AAI is upgrading and

modernising 35 non-metro airports in the country including those at Agra, Ahmedabad, Amritsar,

Bhopal, Jaipur, Pune and Goa, at an estimated cost of around 4,500 crore. Of these 35 airports, 26
have already been developed, while the remaining are likely to be completed by end of 2012. AAI is

also enhancing air connectivity in the North-East by way of Greenfield airport at Pakyong (Sikkim).

The Delhi, Mumbai, Bengaluru, Hyderabad and Cochin now have airports that compare very well

internationally. A major achievement during the Eleventh Plan was the commissioning of terminal 3

(T3) and associated infrastructure at Delhi international airport in a record period of 37 months. The

Chennai and Kolkata airports are also being modernised and expanded by the Airports Authority of

India (AAI). These airports handle 60 per cent of the air traffic in the country. The passenger handling

capacity has increased from 13.83 to 60 million at Delhi; 18.50 to 25 million at Mumbai; 3.25 to 9.78

million at Bengaluru; 3.60 to 12 million at Hyderabad; 3.46 to 5 million at Kochi; 7.74 to 23 million at

Chennai and 4.06 to 24.06 million at Kolkata during the Eleventh Plan period. Airport capacity in

these cities is therefore considered adequate till the end of the Twelfth Plan period except for the

city of Mumbai where the total capacity required at the end of Twelfth Plan would be 50.27 million

against the total capacity creation of 40 million by the end of Twelfth Plan. Since, the capacity

required, and the capacity created would not match, there is need for developing another airport at

Mumbai.

Civil Aviation in 12th Five-year plan

The Civil Aviation services have expanded rapidly with the opening of domestic skies to private

carriers in the second half of the Tenth Plan through PPP investment in the airport infrastructure. The

sector contributes significantly to development by generating employment opportunities directly and

indirectly besides facilitating enhancement of productivity and efficiency in the movement of goods

and services.

Objectives
The Plan aims to propel India among the top five civil aviation markets in the world by providing

access to safe, secure and affordable air services to everyone through an appropriate regulatory

frame work and by developing world class infrastructure facilities

Strategies

To realise objectives of the Twelfth Plan, (i) aircraft and airport capacities would be increased, (ii)

airports to be modernised and upgraded to increase passenger facilities and to speed up cargo

clearance, strengthen security and safety measures for safe and reliable air services, (iii) improve air

connectivity to NE Region, other remote areas and tourist destinations, create right infrastructure for

the rapid growth of helicopter operations, (iv) introduce seaplane operations, (v) to generate

employment and to provide better infrastructure for training to make available qualified human

resources, and (vi) strengthening of regulatory framework on safety and economic regulatory aspects

of Civil Aviation, by setting up Civil Aviation Authority.

Airport Infrastructure

Passenger terminal capacity in all airports put together is expected to be 230-240 million by 2012

and by 2017 it would be about 370 million as per the investment plans of the operators. Cargo

growth presently being witnessed will necessitate investment in specialised cargo terminal and

equipment. Independent estimates suggest an additional requirement of 30 functional airports by

2017 and about 180 functional airports in all over the next 10 years. Thus, growth in the passenger

and cargo traffic requires significant investments for construction of new airports, expansion and

modernisation of infrastructure (road, metro, sea link, and so on.) and better airspace management.

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 would

be taken care by the AAI. 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 at current level of operations. Indian airports would require to meet the

traffic growth projections an investment of about 67,500 crores during the Twelfth Plan, of which

around 50,000 crore is likely to be contributed by the Private Sector.

Air Navigation Services (ANS)

Air Space and Air Traffic Management infrastructure assumes critical importance in the context of the

Indian Air Transport sector transitioning to the next growth phase. Broadly, it involves deployment of

equipment relating to CNS (Communication Navigation and Surveillance) and Air Traffic Management

Systems. Presently air navigation services in India are provided by the Airport Authority of India. An

important initiative that needs to be pursued and implemented is separation of Air traffic control

(ATC) from airport authority of India (AAI) in line with the best practices in the world. It has been

suggested that in addition to adequate investment proposed in ANS infrastructure during the Twelfth

Plan, an independent Air Navigation Services Corporation should be set up to manage capacity,

safety, congestion and efficiency issues of air transport.

The Ministry of Civil Aviation has constituted a Committee for formulating the next generation ANS

master plan to enhance capacity and safety levels in the face of higher air traffic movements in

future. The ANS infrastructure would move towards greater integration and automation with

implementation of state-of-the-art technologies. The system would include a centralised Air Traffic

Flow Management with networked VHF and Radars capable of providing dynamic sectors, which

permits alignment with traffic pattern. Existing software and hardware infrastructure would be

upgraded or replaced. It is estimated that an investment of `4,400 crore will be made into this sector

during the Twelfth Plan of which 3,700 crore would be in ANS infrastructure and air safety and 700

crore in the GAGAN project.

GAGAN—The Indian Satellite Based Augmentation System (SBAS) for Air Navigation Services

GAGAN, the Indian SBAS (Satellite Based Augmentation System) is a project jointly undertaken by

the Airport Authority of India and ISRO to achieve smooth transition to satellite based navigation and

seamless air traffic management across continents. GAGAN is designed to provide additional

accuracy, availability, and integrity necessary to enable user to rely on GPS for all phases of flight,

form en route through approach, for all qualified airports within the GAGAN service volume. GAGAN

will provide the capability for increased accuracy in position reporting, thereby making possible high-

quality Air Traffic Management (ATM). GAGAN will provide benefits beyond aviation to all modes of

transportation, including maritime, highways, railways and public services such as defence services,

security agencies, and disaster recovery management by aiding in search and rescue to locate the

disaster zone accurately, telecom industry and personal users of position location applications. After

USA, Japan and Europe, India has taken up the challenge of establishing the regional SBAS that will

redefine the navigation in India and in adjacent regions. The footprint of GAGAN will cover huge area

beyond Indian Territory, from Africa to Australia and can support seamless navigation across the

globe. The system is also interoperable with other such systems of WAAS of USA, EGNOSS of Europe

and MSAT of Japan. The lead taken by the Ministry of Civil Aviation in implementing GAGAN and

possible certification by 2014 will propel India as the only fourth country to have this facility in the

world.

Air Lines

Anticipating significant growth in traffic, most Indian carriers have placed orders to augment their

aircraft fleet. According to an estimate, airlines in India are expected to add around 370 aircrafts

worth `1,50,000 crores to their fleet by 2017. Fleet expansion at this scale would require airlines to

explore multiple funding options including capital markets, long-term borrowings and leasing, and so

on.
Aviation Turbine Fuel

A major difficulty being faced by airlines is the high cost of Aviation Turbine Fuel (ATF), which is

further aggravated by taxes. Viewed in inter-modal context, it is desirable to rationalise ATF pricing

and to review the tax structure so that Airline operation becomes viable. The cost of ATF constitutes

40–50 per cent of the total operating cost and thus is a formidable challenge for the financial health

of airlines. This has been a long-standing issue that requires an immediate resolution. ATF prices in

India are distorted because it is subjected to a multitude of cascading taxes by different government

entities despite being an input fuel (like coal and gas); it is subjected to sales tax as high as 30 per

cent. It is nearly 60 per cent costlier than competing hubs like Dubai, Singapore and Kuala Lumpur

and hurts India’s competitiveness. The comparison of ATF prices in India with competing hubs has

been detailed below.

Comparison of ATF Prices in India with Competing Hubs

Location Price/Kilolitre (USD)

India 1400
Singapore 825
Bangkok 880
Kuala Lumpur 810
Dubai 840

Due to the distortion in the price structure caused by the taxation policies, the financial viability of

airlines is getting strongly affected. Either ATF should be included in the unified Goods and Services

Tax or ATF should be accorded the status of “Declared Good” that carries lower and uniform tax rate.

Multi-Modal Connectivity
The major airports in India are mostly at a considerable distance from the city centre. Apart from

causing inconvenience to the passengers, this also adversely affects the comparative advantage in

terms of saving in time otherwise enjoyed by other modes of transport. These airports need to be

connected to cities by metros and expressways to get full advantage of air transportation by reducing

the total travel time, as has been done in the case of IGI Airport, New Delhi.

Foreign Equity Participation

The Domestic Air Transport Policy approved by the government provides for foreign equity

participation up to 49 per cent and investment by non-resident Indians (NRIs) up to 100 per cent in

the domestic air transport services. With a view to attracting new technology and management

expertise, government has permitted up to 49 per cent Foreign Direct Investment (FDI) by foreign

airlines in Indian airline companies.

Air Cargo

The current share of air-cargo compared to other modes of cargo-transportation is fairly low in India.

The present operating parameters (daily throughput, dwell times) at most air-cargo terminals of the

country are far from international best-practices. The following key enablers would be imperative for

growth of India’s air-cargo industry:

1. Higher Automation: Poor cargo handling infrastructure at airports leads to spoilage and pilferage,

increased turnaround times and degradation in the quality of items causing perception issues for

Indian exports. There is an urgent need to facilitate efficiency in air-cargo through IT tools and

automated material handling.

2. India as a Trans-Shipment Cargo Hub: Given its geographic location, India can aspire to become an

international cargo hub. To begin with, India needs to facilitate trans-shipment of cargo to and from

our neighbouring countries, many of whom do not have regular air services to key markets in Europe

and America.
3. Trans-shipment at Indian airports is currently negligible. Major bottlenecks are absence of

dedicated trans-shipment infrastructure at airports and lack of clarity on the trans-shipment

procedures. Conservative estimates by KPMG indicate that the Indian subcontinent alone can offer

trans-shipment opportunity of 80,000-1,00,000 MT per annum.

4. Dwell Time Reduction: Cargo dwell times for large Indian airports currently range from 3 to 5 days

as compared to an average of 4 to 12 hours at leading global airports. Reduction in dwell time and

faster clearance of cargo are extremely critical for India.

5. 24×7 Customs Operation: A review of the current customs clearance procedures is extremely

important. There is also a serious need for Indian Customs to operate in a 24×7 environment. This

would require close and regular interaction between MoCA, Central Board of Customs and Excise

(CBEC) and the industry.

6. Establishment of Air-Freight Stations (AFS) in the hinterland: A significant amount of congestion,

damage and pilferage is caused by the current practice of cargo being brought to terminal in loose

units which is then unitised into pallets or containers before being loaded onto aircrafts. This

problem can be alleviated by setting up AFSs’ in the hinterland. Customs check, X-ray screening and

palletisation can take place at the AFS and airport terminals would only act as a ‘processing gateway’

between airlines and cargo carriers. Success of Containers Freight Stations (CFS) for marine cargo is a

clear indication of the need for a similar concept in the air cargo industry.

Regional Airlines

To tap the vast potential of growth of traffic and to encourage balanced growth of civil aviation,

regional airlines need to be promoted. The promotion of regional airlines would, however, be

through more liberal policy and provision of better infrastructure facilities. The rules and procedures

governing the entry may also be simplified

Human Resource Development

It has been estimated that total manpower requirement of airlines will rise from 62,000 in FY 2011 to

1,17,000 by FY 2017. This includes number of pilots, cabin crew, aircrafts engineers and technicians

(MRO), ground handling staff, cargo handling staff, administrative and sales staff. India currently has

over 4,500 pilots, including 400 expatriates. With the doubling of fleet size expected by 2017, India

will require a total of around 9,000 pilots by 2017. This implies an average addition of at least 800

pilots per year for the next five years, not accounting for attrition and replacements of expatriate

pilots (about 400), required to be phased out by end of 2013. Currently 23 out of 40 institutes for

pilot training are non-operational. The remaining 17 institutes offer training facilities for commercial

pilots with an annual turnover of over 100 pilots. There is acute shortage of trained

pilots/commanders in India. In addition, many courses of some of the pilot training institutes are not

recognised by DGCA, leading to high rejection rates. Exams are conducted every three months

compared to weekly exams in developed countries. It is necessary to meet these gaps in the Twelfth

Plan and increase facilities for human resource development.

Present Scenario of Aviation sector in India

The civil aviation industry in India has emerged as one of the fastest growing industries in the country

during the last three years. India is currently considered the third largest domestic civil aviation

market in the world. According to International Air Transport Association (IATA), India will displace

the UK for the third place in 2026. The Civil Aviation industry has ushered in a new era of expansion,

driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in

domestic airlines, advanced information technology (IT) interventions and growing emphasis on

regional connectivity.

Market Size

Domestic air traffic rose nearly 16 per cent in August 2017, continuing its double-digit growth,

according to the civil aviation regulator Directorate General of Civil Aviation (DGCA). About 9.69

million passengers flew in August, up from 8.38 million a year earlier. Passengers carried by domestic
airlines during January-August 2017 were 75.411 million as against 64.468 million during the

corresponding period of previous year, thereby registering a growth of 16.97 per cent, as per the

DGCA. As against 395 aircrafts in the fleet of Indian carriers, there are 496 aircrafts in operation

today, and another 654 are under purchase.

Fig 1. Growth in Domestic Passenger Traffic

Source: Airport Authority of India, Sectoral Reports, December 2017

Fig 2: Freight Traffic (Numbers in Million Tonnes)

Source: Airport Authority of India, Sectoral Reports, December 2017

Investment
According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows

in air transport (including air freight) between April 2000 and March 2017 stood at US$ 1.01 billion.

India is estimated to see an investment of US $25 billion in the next decade in the airports sector, a

demand for 935 more planes and traffic growth of 13 per cent, according to Morgan Stanley.

According to them, the share of air travel in air and rail travel combined in India will grow to 15.2 per

cent by 2027 from 7.9 per cent now.

Capex plans to the tune of Rs 65,000 crore (US$ 10.08 billion) have been finalised by the Airports

Authority of India (Rs 17,500 crore (US$ 27.13 billion) for the next five years) and around Rs 22,000

crore (US$ 3.41 billion) for brownfield expansion in Delhi, Mumbai, Hyderabad and Bengaluru by

private operators and around Rs 21,000 crore (US$ 32.55 billion) for greenfield airports.

Key investments and developments in India’s aviation industry include:

 The Airports Authority of India (AAI) will undertake new development works at Lucknow,

Deoghar, Rajkot and Allahabad airports. The objective is to improve and develop airport

infrastructure to meet growing traffic demands. AAI plans to construct new integrated

passenger terminal building at Chaudhary Charan Singh International Airport, Lucknow at an

estimated cost of Rs. 1230 crore (US$ 190.65 million). The new terminal will be able to

handle 4000 passengers during peak hour and 6.35 million passengers per annum.
 State-owned AAI will construct a cargo terminal at Imphal airport at a cost of Rs 16.20 crore

(US$ 2.5 million). The proposed terminal is expected to give a boost to the export of

handicrafts items and perishable cargo. In addition to this, the EICT will help establish better

connectivity with South & Southeast Asia and give a boost to trade between India and the

ASEAN countries.
 To meet the demand of increasing air travel in Allahabad, a new civil enclave at will be

developed by AAI at an estimated cost of 125.76 crore (US$ 19.49 million). The new terminal

is to be made operational before the ‘Ardh Kumbh Mela’ to be held in January 2019.
  Rolls-Royce Holdings Plc, the UK-based aircraft engine manufacturer, has opened a new

defence service delivery centre (SDC) in Bengaluru, which would deliver real-time solutions

for improving capability and provide faster front-line support to over 750 aircraft engines

used by the Indian Air Force, Indian Navy and State-owned Hindustan Aeronautics Ltd (HAL).
 Qatar Airways is planning to start India’s first fully owned foreign airline in partnership with

Qatar Government's investment arm, Qatar Investment Authority, as per Qatar Airways.
 Indian budget airline carriers Indigo and GoAir, plan to expand their network to Gulf cities

like Doha, Sharjah and Dammam in 2017, which would likely boost the growth of Indian

aviation sector.
 GVK Power & Infrastructure Ltd., which operates the existing airports in Mumbai and

Bangalore, has won the right to build Mumbai’s second airport in Navi Mumbai, which will

require an investment of Rs 16,000 crore (US$ 2.48 billion) to build the airport with a

capacity to handle 10 million passengers annually in the first phase, expected to be

operational by 2019 and 60 million passengers a year by 2030.

Government Initiatives

In the Union Budget 2017-18, the Civil Aviation Ministry received a substantial increase of over 22

per cent in budgetary allocation at Rs 5,167.60 crore (US$ 775.14 million) for the next financial year.

Some major initiatives undertaken by the government are:

 Constructing 17 highways-cum-airstrips are the government's priorities and it will start work

on them this year, Union Minister Nitin Gadkari has said. The projects are designed in such a

fashion that the roads will double up as airstrips and traffic will be stopped when an airplane

lands or takes off. The road and air connectivity will also provide better access to remote

areas.
 Airport building and modernization projects worth over Rs 19,300 crore (US$ 2.99 billion)

have been recommended green clearance, in line with the Government of India’s focus on

improvement in regional air connectivity.

 Indian airline companies like Air India, Air Deccan, SpiceJet, Air Odisha and Turbo Megha,

have been awarded with the right to fly to 128 routes across India, requiring them to cap half

the seats at nearly 50 per cent of the fare, under the Government of India’s regional aviation

scheme named UDAN.

 The Government of India has approved the construction of 18 Greenfield airports in the

country, which would be executed and financed by the respective airport promoters, and are

estimated to require an investment of Rs 30,000 crore (US$ 4.66 billion).

 The Cabinet Committee on Economic Affairs, Government of India, has approved the

proposal to revive 50 un-served and under-served airstrips in three financial years starting

from 2017-18 at an estimated cost of Rs 4500 crore (US$ 698.7 million).

 The Government of India has started a new regional connectivity scheme (RCS) called Ude

Desh ka Aam Nagrik (UDAN) under which fares will be capped at Rs 2,500 (US$ 37.5) for half

the seats in an one-hour flight, as per Mr Jayant Sinha, Minister of State Civil Aviation. The

Government of India has also received bids from 11 airlines for the same.
 The Ministry of Civil Aviation along with Airports Authority of India (AAI) plans to develop

small airports with frugal facilities, and encourage private airlines to bid for routes

connecting these small airports with existing larger airports, thereby increasing regional air

traffic.
 AAI plans to increase its capital expenditure for 2017-18 by 25 per cent to Rs 2,500 crore

(US$ 375 million), primarily to expand capacity at 12 airports to accommodate rising air

traffic, as per Mr Guruprasad Mohapatra, Chairman, AAI.

 The Ministry of Civil Aviation has revised its air services agreement with Netherlands, which

would enable air carriers from both the countries to operate up to 28 flights each week, up

from current weekly limit of 21 flights, which would benefit regional carriers as well as

enhance connectivity between the countries.

 The Executive Development Programme of Rajiv Gandhi National Aviation University in

collaboration with Indo US – American Cooperation Program, inaugurated by Mr Ashok

Gajapathi Raju, Minister for Civil Aviation, aims to promote skill development of senior

leadership and close the gap of increasing demand for trained people in the aviation sector.
Major airports in India

Indira Ghandi International Airport (IGIA)

Delhi International Airport (DIAL) is a joint venture consortium of GMR Group (64%), Airports

Authority of India (26%) and Fraport (10%).

In January 2006, the consortium was awarded the concession to operate, manage and develop the

Indira Gandhi International Airport (IGIA) following an international competitive bidding process.

DIAL entered into Operations, Management and Development Agreement (OMDA) on April 4, 2006
with the Airports Authority of India. The initial term of the concession is 30 years extendable by a

further 30 years. The contract was on BOOT basis.

Besides upgrading the existing terminals, DIAL has already commissioned a new runway 11-29 at IGIA

on September 25, 2008. It has also inaugurated the new domestic departure terminal 1D (T1D) on

26th February 2009. T1D will increase the capacity of domestic departures to 10 million passengers

per annum. The terminal has a modern 5 level in-line baggage handling system to eliminate baggage

X-ray prior to check in, spacious security hold area with extensive F&B and retail facilities, special

contact zone for passengers with special needs and baggage handling area on a separate level

allowing greater space for passenger amenities.

In March 2010, DIAL completed the construction of integrated passenger terminal (Terminal 3). The

first phase of the airport is designed and capable to handle 60 million passengers per annum (mppa).

This development was the first phase of the airport expansion. In subsequent stages, the airport will

be further developed with the increase in passenger demand and more terminals and runways

would be added in a modular manner to form a U-shaped complex with an ultimate design capacity

of 100 million passengers per annum.

Terminal 3 has state-of-the-art complex that features Common Use Terminal Equipment (CUTE) and

an advanced 5 level in-line baggage handling system with explosive detection technology for greater

efficiency and security. The check-in area features more than 168 check-in counters. Passengers

would greatly benefit as check-in and security clearances would be faster and less obtrusive. For

international passengers more than 95 desks will facilitate immigration procedures. In addition, the

terminal also features 78 aerobridges.

The two-tier terminal building features the departure complex on the upper level and the arrivals on

the lower level. The roof of the building has been stylized incisions to allow daylight and has been

angled to protect the interior from direct sunlight. The effect creates a calm environment and

maximizes the sense of volume, space and light inside. The use of natural light will reduce the
dependency on artificial light during day-time. The arrival hall features both standard and wide-body

baggage reclaims belts. Passengers can emerge from bag reclaim into the Internal Landside Arrivals

Concourse from where transit passengers could use elevators to proceed towards the Departures

level. 4 piers will provide access to the aircraft from the terminal. Access to the new terminal would

be via a 6 lane approach road. The Airport has been connected through dedicated high-speed Metro

line connecting to the city centre.

IGIA has been adjudged the world’s best airport in the 25-40 million passengers per annum (MPPA)

category in the Airport Service Quality (ASQ) awards by the ACI for the year 2014. The airport

improved from an ASQ score (measured on scale of 1 to 5) of 3.02 in 2007 to 4.90 in 2014. It was

ranked second in 2011, 2012 and 2013. The Airport also bagged two awards for ‘The Best Airport in

Central Asia/India’ and ‘Best Airport Staff in Central Asia/India’ at the prestigious Skytrax World

Airport Awards 2015.

Awards

IGIA has a list of achievements to its credit when it comes to Service & Quality offered at its airport

terminals. Here are a few highlights:

World No. 2 Airport for Airport Service Quality by Airports Council International in the highest

passenger category in 2016

Indira Gandhi International Airport (IGIA), New Delhi received the coveted Airport Service Quality

(ASQ) Award 2016 for becoming world’s number 2 airport in the highest category of handling over 40

million passengers per annum (MPPA).

Delhi Airport’s Service Quality (ASQ) score rose to 4.99 in 2016 from 4.96 in 2015 on a scale of 1-5.

The stellar ASQ ratings positioned IGIA over other International airports placing it only after South

Korea’s Incheon airport.

World No. 1 Airport for Airport Service Quality by Airports Council International in 2014 & 2015
Delhi’s Indira Gandhi International Airport (IGIA) has been ranked the world’s best airport by Airport

Council International’s (ACI) on Airport Service Quality (ASQ). It received this prestigious rating for

airports in the 25-40 million passenger’s category consecutively for 2014 & 2015 after holding the

number 2 spot for three consecutive years. Beginning with a meagre score of 3.02 on 5-point scale in

2007 where it was ranked # 101 out of 125 participating airports, IGIA has made rapid strides in

transforming the experience of passengers flying in and out of Delhi Airport and within a span of a

few years has emerged as the No. 1 Airport in its category. ACI is world renowned body of global

airports. The ASQ awards rank top performing airports in the annual ACI Airport Service Quality

(ASQ) passenger survey.

Golden Peacock National Quality Award

IGIA received the prestigious Golden Peacock National Quality Award’ 2015 for their concerted effort

in building a culture of Total Quality across IGI Airport.

Skytrax Awards 2015

IGIA received 2 prestigious awards at the Skytrax World Airport Awards 2015. Delhi Airport was

adjudged as the best airport in Central Asia / India region. The second award was attributed to the

airport staff which was named the best in the same region.

LEED India Gold Rating

Leadership in Energy and Environmental Design (LEED) India rating system is licensed by US-GBC to

the Indian Green Building Council (IGBC) to encourage and facilitate the development of more

sustainable buildings. Terminal 3 (T3) has been awarded green building “LEED INDIA GOLD” rating

from IGBC thereby making it one of the largest Green Buildings in the world.

British Construction Industry Award

Delhi Airport’s Terminal 3 won the British Construction Industry Award (BCIA) for the Best

International Project in 2010.

Chhatrapati Shivaji International Airport (BOM)

Chhatrapati Shivaji International Airport, formerly known as Sahar International Airport, is the

primary international airport serving the Mumbai Metropolitan Area, India. It is the second busiest

airport in the country in terms of total and international passenger traffic after Delhi, and was the

14th busiest airport in Asia and 29th busiest airport in the world by passenger traffic in calendar year

2016 handling over 44.68 million passengers. Its passenger traffic crossed 45 million in fiscal year

2016-17. The airport is the second busiest in the country in terms of cargo traffic also. In March 2017,

the airport overtook London's Gatwick Airport as the world's busiest airport with only one

operational runway at a time. The airport has three operating terminals spread over an operational

area of 750 hectares (1,850 acres) and handles about 850 aircraft movements per day. It handled

record 51 movements in one hour on 16 September 2014. It won the 2015 ASQ Best Airport Award

in the 25-40 million passengers per annum category by Airports Council International. It has also won

the "Best Airport in India and Central Asia" award at the Skytrax 2016 World Airport Awards. It is one

of the three airports in India to have implemented Airport Collaborative Decision Making (A-CDM) to

ensure timely take-offs and landings.

The airport is operated by Mumbai International Airport Limited (MIAL), a Joint Venture between the

Airports Authority of India and the GVK Industries Ltd led consortium which was appointed in

February 2006 to carry out the modernisation of the Airport. The new integrated terminal T2 was

inaugurated on 10 January 2014 and opened for international operations on 12 February 2014. A

dedicated six lane, elevated road connecting the new terminal with the main arterial Western

Express Highway was also opened to the public the same day.

The airport is named after the 17th-century Maratha emperor, Chhatrapati Shivaji. It was re-renamed

Chhatrapati Shivaji Maharaj International Airport, adding "Maharaj" to the name, by the Government

of Maharashtra on 8 December 2016. CSIA's IATA airport code – "BOM" – is derived from Bombay,
Mumbai's former name. It is situated across the suburbs of Santacruz, Vile Parle and Sahar village in

Andheri.

The consortium of GVK Industries Ltd, Airports Company South Africa and Bidvest, won the bid to

manage and operate CSIA. To accomplish this task, Mumbai International Airport Private Limited

(MIAL), a Joint Venture between the consortium (74%) and the Airports Authority of India (26%) was

formed. Since then, MIAL has made several improvements in the aesthetics, design and passenger

conveniences at CSIA including the refurbishment of domestic terminals 1A & 1B, international

terminals 2B & 2C and the opening of a brand new domestic terminal 1C and Terminal 2. MIAL also

undertook airside improvement projects such as the commissioning of new taxiways, aprons and the

reconstruction of both runways. In February 2008, MIAL entered into an agreement with Air

Transport IT specialist SITA that led to CSIA becoming the first airport in India to Implement

Common-use self-service Kiosks and CUTE (Common Use Terminal Equipment) check-in systems.

Kempegowda International Airport (BLR)

Kempegowda International Airport is an international airport serving Bangalore, the capital of the

Indian state of Karnataka. Spread over 4,000 acres (1,600 ha), it is located about 40 kilometres

(25 mi) north of the city near the village of Devanahalli. It is owned and operated by Bangalore

International Airport Limited (BIAL), a public–private consortium. The airport opened in May 2008 as

an alternative to increased congestion at HAL Airport, the original primary commercial airport

serving the city. It is named after Kempe Gowda I, the founder of Bangalore. Kempegowda

International Airport became Karnataka's first fully solar powered airport developed by CleanMax

Solar.

As of 2016, Kempegowda Airport is the third-busiest airport by passenger traffic in the country,

behind the airports in Delhi, Mumbai and is the 35th-busiest airport in Asia. It handled over 22.2

million passengers in 2016 with little less than 500 aircraft movements a day. The airport also

handled about 314,060 tonnes (346,190 short tons) of cargo. By 2020, it is expected to handle at
least 40 million passengers per year, with 45 international airlines and more than 1000 aircraft

movements per day.

The airport consists of a single runway and passenger terminal, which handles both domestic and

international operations. A second runway is being constructed and is expected to be operational by

September 2019 while a second terminal is in the early stages of construction. In addition, there is a

cargo village and three cargo terminals. The airport serves as a hub for AirAsia India, Alliance Air, Jet

Airways and IndiGo and a focus city for Air India and SpiceJet.

Planning, construction and opening (1991 - 2008)

The original airport serving Bangalore was HAL Airport, located 10 kilometres (6.2 mi) from the city

centre. However, as Bangalore grew into the Silicon Valley of India and passenger traffic to the city

rose, the airport was unable to cope. There was no room for expansion and the apron could only

park six aircraft. In March 1991, former chairman of the National Airports Authority of India (NAAI) S.

Ramanathan convened a panel to select the site for a new airport. The panel decided on Devanahalli,

a village about 40 kilometres (25 mi) north of Bangalore. The State Government made a proposal to

build the airport with private assistance, which the Union Government approved in 1994.

In December 1995, a consortium consisting of Tata Group, Raytheon and Singapore Changi Airport

signed a memorandum of understanding with the State Government regarding participation in the

project. In June 1998, however, the consortium announced it was pulling out of the project due to

delays in government approval. These included disputes over the location of the airport and the fate

of HAL Airport.

In May 1999, the Airports Authority of India (AAI) and the Karnataka State Industrial and

Infrastructure Development Corporation (KSIIDC) of the State Government signed a memorandum of

understanding regarding the nature of the project. It would be a public–private partnership, with AAI

and KSIIDC having a 26% share and private companies having the remaining 74%. In January 2001,
the State Government created the company Bangalore International Airport Limited (BIAL) as a

special purpose entity and began searching for partners. By November, the project had attracted

Unique Zürich Airport, Siemens Project Ventures and Larsen & Toubro. Construction was expected to

begin in October 2002; however, governmental delays persisted. The concession agreement between

the State Government, the Union Government and BIAL was signed in July 2004. In it, BIAL required

the closure of HAL Airport.

Construction finally commenced on 2 July 2005. When a study predicted the airport would receive

6.7 million passengers in 2008, the airport was redesigned from its initial capacity of 4.5 million

passengers to 11 million, with the terminal size expanded and the number of aircraft stands

increased. The cost of the airport rose to ₹1,930 crore (US$300 million). Construction was completed

in 32 months, and BIAL set the launch date for 30 March 2008. However, due to delays in establishing

air traffic control services at the airport, the launch date was pushed to 11 May and finally 24 May

2008.

As the opening date for the airport approached, public criticism arose, mainly directed toward the

closure of HAL Airport. In March 2008, AAI employees conducted a massive strike against the closure

of HAL Airport along with Begumpet Airport in Hyderabad, fearing they would lose their jobs. The

Bangalore City Connect Foundation, a group of citizens and businessmen, staged a rally in mid-May,

claiming the new airport was too small for the latest demand projections. On 23 May, a hearing was

held at the Karnataka High Court over poor connectivity between the city and the airport. Ultimately,

the State Government decided to go ahead with inaugurating the new airport and closing HAL

Airport.

The first flight to the airport, Air India Flight 609 from Mumbai, could land the previous night as it

would be continuing to Singapore shortly after midnight. The aircraft touched down at 10:40 pm on

23 May. The airport became the third greenfield airport under a public–private partnership to open

in India, after Rajiv Gandhi International Airport in Hyderabad and Cochin International Airport.
Netaji Subhas Chandra Bose International Airport (CCU)

Netaji Subhas Chandra Bose International Airport is an international airport located in Kolkata, West

Bengal, India, serving the Kolkata metropolitan area. It is located approximately 17 km (11 mi) from

the city centre. The airport was earlier known as Dum Dum Airport before being renamed after

Netaji Subhas Chandra Bose, a prominent leader of the Indian independence movement.

Spread over an area of 2,460 acres (1,000 ha), Kolkata airport is the largest hub for air traffic in the

eastern part of the country and one of two international airports operating in West Bengal, the other

being Bagdogra. The airport handled over 15.8 million passengers in fiscal year 2016-17 making it the

fifth-busiest airport in India in terms of passenger traffic after Delhi, Mumbai, Bangalore and

Chennai. The airport is a major centre for flights to Northeast India, Bangladesh, Bhutan, China and

Southeast Asia. In 2014 and 2015, Kolkata Airport won the title of Best Improved Airport in the Asia-

Pacific region awarded by the Airport Council International.

History

Kolkata airport traditionally served as a strategic stopover on the air route from Europe to Indochina

and Australia. Many pioneering flights passed through the airport, including Amelia Earhart's in 1937.

In 1924, KLM began scheduled stops at Calcutta, as part of their Amsterdam to Batavia (Jakarta)

route. The same year, a Royal Air Force aircraft landed in Calcutta as part of the first round-the-world

expedition by any air force.

The airport began as an open ground next to the Royal Artillery Armoury in Dum Dum. Sir Stanley

Jackson, Governor of Bengal, opened the Bengal Flying Club at Calcutta aerodrome in February 1929.

In 1930, the airfield was made fit for use throughout the year, and other airlines began to utilise the

airport. Air Orient began scheduled stops as part of a Paris to Saigon route, and Imperial Airways

began flights from London to Australia via Calcutta in 1933. This began a trend that drew many

airlines to Calcutta airport.

Calcutta played an important role in the Second World War. In 1942, the United States Army Air

Forces 7th Bombardment Group flew B-24 Liberator bombers from the airport on combat missions

over Burma. The airfield was used as a cargo aerial port for the Air Transport Command, and was also

used as a communication centre for the Tenth Air Force.

Passenger services grew after the Second World War. Calcutta became a destination for the world’s

first jet-powered passenger aircraft, the de Havilland Comet, on a British Overseas Airways

Corporation (BOAC) route to London. Furthermore, in 1964 Indian Airlines introduced the first Indian

domestic jet service, using Caravelle jets on the Calcutta–Delhi route.

Between the 1940s and 1960s, the airport was served by several major airlines including Aeroflot, Air

France, Alitalia, Cathay Pacific, Japan Airlines, Philippine Airlines, KLM, Pan Am, Lufthansa, Swissair

and SAS.

Due to the introduction of longer-haul aircraft and the poor political climate of Calcutta during the

1960s, several airlines discontinued their service to the airport. The 1971 Bangladesh Liberation War

saw a large increase of both refugees and disease in Calcutta, causing more airlines to cease services

to the city. In 1975, the airport opened the first dedicated cargo terminal in India.

In the early 1980s, plans emerged to connect the airport with the city centre by tram. The proposed

route went to the airport from Maniktala, via Vivekananda Road, Ultadanga and Kazi Nazrul Islam

Avenue. The line partly completed 1985, but further expansion to the airport was cancelled due to

the financial downing of Calcutta Tramways Company. The extension proposal re-appeared in 1999,

but was cancelled.

The 1990s saw new growth for Calcutta airport, as the Indian aviation industry saw the arrival of new

airlines such as Jet Airways and Air Sahara. A new domestic terminal was opened in 1995, and the

airport was renamed in honour of Netaji Subhas Chandra Bose. In 2000, a new international arrival

hall was opened.

Rajiv Gandhi International Airport (HYD)

Rajiv Gandhi International Airport is an international airport that serves Hyderabad, the largest city in

the Indian state of Telangana. It is in Shamshabad, about 24 kilometres (15 mi) south of Hyderabad.

The airport is operated by GMR Hyderabad International Airport Ltd, a public–private venture. It was

opened in March 2008 to replace Begumpet Airport as the primary commercial airport for

Hyderabad. It is named after Rajiv Gandhi, former Prime Minister of India.

The airport has one passenger terminal, a cargo terminal and two runways. There are also aviation

training facilities, a fuel farm, a solar power plant and two MRO facilities. As of 2017, RGIA is the sixth

busiest airport by passenger traffic in India. The airport served 15.1 million passengers between 2016

April - 2017 March. The airport serves as a hub for Air India Regional, Blue Dart Aviation, SpiceJet,

Lufthansa Cargo, Quikjet Cargo, and TruJet, and as a focus city for IndiGo and Air India.

Ownership

RGIA is owned and operated by GMR Hyderabad International Airport Ltd (GHIAL), a public–private

venture. It is composed of public entities Airports Authority of India (13%) and the Government of

Telangana (13%), as well as a private consortium between GMR Group (63%) and Malaysia Airports

Holdings Berhad (11%). Per the concession agreement between GHIAL and the Central Government,

GHIAL has the right to operate the airport for 30 years, with the option to continue doing so for

another 30 years.

Planning (1997–2004)

The existing commercial airport, Begumpet Airport, was unable to handle rising passenger traffic.

The State Government initially considered converting Hakimpet Air Force Station to civilian use;

however, the Air Force refused. When the State proposed the construction of a new airport for the
Air Force, the Ministry of Defence suggested the State consider sites south of Begumpet Airport. By

October 1998, the State had narrowed down to three possible locations for the new airport:

Bongloor, Nadergul and Shamshabad. Due to its convenient location near two highways (NH 44 and

NH 765) and a railway line, Shamshabad was selected in December 1998.

In November 2000, the State Government and the Airports Authority of India (AAI) signed a

memorandum of understanding on the airport project, establishing it as a public–private partnership.

The State and AAI together would hold a 26% stake in the project, while the remaining 74% would be

allotted to private companies. Through a bidding process, a consortium consisting of GMR Group and

Malaysia Airports Holdings Berhad (MAHB) was chosen as the holder of the 74% stake. In December

2002, Hyderabad International Airport Ltd (HIAL), later renamed GMR Hyderabad International

Airport Limited (GHIAL), was created as a special purpose entity, into which the State, AAI and GMR–

MAHB placed their stakes.

In September 2003, the members of GHIAL signed a shareholders' agreement, as well as an

agreement for state subsidy of over ₹400 crore (US$63 million). A concession agreement between

GHIAL and the Central Government was signed in December 2004, stipulating that no airport within

a 150-kilometre (93 mi) radius of RGIA could be operated. Thus, the closure of Begumpet Airport was

required.

Construction and opening (2005–2008)

Construction began on 16 March 2005 when Sonia Gandhi laid the foundation stone. Two days prior,

the Central Government had named the airport after former Prime Minister Rajiv Gandhi, who had

undergone pilot training in Hyderabad. Roughly three years after the foundation stone laying

ceremony, the airport was inaugurated on 14 March 2008 amid protests. In addition, on 12 and 13

March, 20,000 AAI employees had conducted a strike against the closure of Begumpet Airport, as

well as that of HAL Airport in Bangalore, fearing they would lose their jobs.
RGIA was originally scheduled to open to commercial operations on 16 March 2008; however, the

date was delayed due to protests from some airlines over the high ground handling rates at the

airport. Once the rates were reduced, the launch date was set for 23 March 2008. Although

Lufthansa Flight 752 from Frankfurt was scheduled to be the first flight to land at RGIA, two SpiceJet

flights landed earlier. However, the Lufthansa flight still received the planned ceremonial welcome

upon its 12:25 am arrival.

Later developments (2009–present)

In September 2011, SpiceJet launched its regional hub at RGIA, using its new Bombardier Q400

aircraft. The airline, which chose Hyderabad due to its central location in the country, flies to several

Tier-II and Tier-III cities from the airport. Regional airline TruJet too opened a hub at RGIA upon

commencing operations in July 2015.

In November 2014, the Ministry of Civil Aviation resolved that the domestic terminal of RGIA would

be named after N. T. Rama Rao, resulting in protests from members of the Rajya Sabha. Airport

officials remained unsure as to how the naming would occur.

Chennai International Airport (MAA)

Chennai International Airport is an international airport serving the city of Chennai (Madras), Tamil

Nadu, India and its metropolitan area. It is the fourth busiest airport in India in terms of total

passenger traffic after airports at Delhi, Mumbai and Bengaluru. It is the 49th busiest airport in Asia

for CY 2016. In the fiscal year 2016-17, the airport handled over 18.3 million passengers and 400

aircraft movements.

The domestic and the international terminals are named after former chief ministers of Tamil Nadu K.

Kamaraj and C. N. Annadurai respectively. It was the first airport in India to have international and

domestic terminals located adjacent to each other. This airport serves as the regional headquarters

of the Airports Authority of India for South India comprising the states of Tamil Nadu, Andhra
Pradesh, Telangana, Karnataka, and Kerala and the union territories of Puducherry and Lakshadweep.

The airport serves as a hub for Blue Dart Aviation, Jet Airways, SpiceJet and IndiGo. It also serves as a

focus city for Air India and GoAir.

Madras (Chennai) had one of the first airports in India and was the destination of Air India's first

flight from Bombay (Mumbai) via Belgaum (Belagavi) in 1954. The airport was built on land donated

by the former governor of Madras Presidency, K Sriramulu Naidu. Although the first aircraft "de

Havilland" landed in Chennai Airport in 1932, the usage was confined only to military operations

during World War II. In 1952, the Civil Aviation Department took over its operations followed by the

IAAI in 1972.

Administration and Privatisation

Chennai airport is the regional headquarters of the Airports Authority of India for the southern

region of India comprising the states of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and

Kerala and the union territories of Puducherry and Lakshadweep. It functions from the ATS Complex

within the airport and has 49 airports under its control, including 19 operational AAI airports, 5

operational private/joint venture airports, 5 non-operational airports, 12 military airports, and 8

disused airfields. These include 6 international airports, 15 domestic airports, and 3 customs airports.

Chennai airport is the centre of the southern flight information region (FIR), one of the four FIRs that

the Indian air space is divided into. The regional executive director (RED) is responsible for the air

traffic services over the Chennai FIR and airport management on ground at the airports in South

India. The Chennai FIR includes terrestrial air space above the four southern states and two southern

union territories and the oceanic air space of the southern part of the Bay of Bengal and the eastern

part of the Arabian Sea. Coordination with the neighbouring national FIRs of Kolkata and Mumbai

and with the neighbouring international FIRs of Sri Lanka, Kuala Lampur, and Yangon for air traffic

control purposes are being made with telecommunication links (both voice and data). The

immigration services at the airport are handled by the Bureau of Immigration.

The Government of India has proposed to offer a contract to a private operator to maintain and

operate the daily operations of the airport. AAI recently invited bids for the same and various firms

including Tata, Fraport, Celebi, Sahara, GMR, GVK and Essar have shown interest. The airport

employees are protesting against the move fearing job losses.

List of operational Airline services in India

Year of
S.No Airline Name commencemen Head quarters Type of Carrier
t
 1 Air India 1932 Delhi Full Service
2 Jet Airways 1993 Mumbai Full Service
3 IndiGo 2006 Gurgaon Low Cost
4 Air India Express 2005 Kochi Low Cost
5 SpiceJet 2005 Gurgaon Low Cost
6 GoAir 2005 Mumbai Low Cost
7 AirAsia India 2014 Bengaluru Low Cost
8 Vistara 2015 Gurgaon Full Service
9 Alliance Air 1996 Delhi Regional
10 TruJet 2015 Hyderabad Regional
11 Air Odisha 2012 Bhubaneswar Regional
12 Luwang Air — Kolkata Regional
13 Supreme Airlines 1993 Mumbai Charter
14 Ventura AirConnect 2011 Surat Charter
15 Zoom Air 2013 Gurgaon Regional
16 Blue Dart Aviation 1995 Chennai Cargo
17 Quikjet Airlines 2016 Bangalore Cargo
18 Air One Aviation — Delhi Charter
19 Chhattisgarh Air Link 2012 Raipur Charter
20 Club One Air 2005 Delhi Charter
21 Confident Airlines 2005 Bangalore Charter
22 Deccan Charters 1997 Bangalore Regional / Charter
23 Fly Divine 2017 Indore Charter
24 Ghodawat Aviation 2014 Kolhapur Charter
25 Global Vectra Helicorp 1997 Mumbai Charter
26 Jagson Airlines 2005 Delhi Charter
27 Jal Hans 2010 Port Blair Charter
28 Pawan Hans 1985 Delhi Charter
29 Spirit Air 2012 Bangalore Charter
30 TajAir 1993 Mumbai Charter
31 Titan Aviation 2010 Bangalore Charter
32 VRL Air 2008 Hubli Charter

List of Defunct Airlines in India

Year of Year of becoming

S. No Airline Name Head quarters
commencement defunct
1 Air Carnival 2016 2017 Coimbatore
2 Air Costa 2013 2017 Vijayawada
3 Air India Regional 2007 2017 Delhi
 4 Air Pegasus 2015 2016 Bangalore
5 Air Mantra 2012 2013 Delhi
6 Air India Cargo 1954 2012 Mumbai
7 JetLite 1991 2012 Mumbai
8 Kingfisher Airlines 2003 2012 Bangalore
9 Deccan 360 2009 2011 Bangalore
10 Indian 1953 2011 Delhi
11 Aryan Cargo Express 2005 2010 Delhi
12 Paramount Airways 2005 2010 Chennai
13 MDLR Airlines 2007 2009 Delhi
14 Simplifly Deccan 2003 2008 Bangalore
15 Air Dravida 2004 2008 Chennai
16 Indus Airways 2006 2007 Delhi
17 Crescent Air Cargo 2000 2006 Chennai
18 Gujarat Airways 1995 2001 Vadodara
19 Archana Airways 1991 1999 Delhi
20 Bharat Airways 1995 1999 Mumbai
21 Elbee Airlines 1994 1998 Mumbai
22 NEPC Airlines 1993 1997 Chennai
23 Damania Airways 1993 1997 Mumbai
24 Vayudoot 1981 1997 Delhi
25 Vijay Airlines 1981 1997 Chennai
26 VIF Airways 1993 1996 Hyderabad
27 ModiLuft 1994 1996 Mumbai
28 East-West Airlines 1992 1995 Mumbai
29 Pushpaka Aviation 1979 1983 Mumbai
30 Jamair 1946 1977 Kolkata
30 Kalinga Airlines 1946 1965 Kolkata
32 Darbhanga Aviations 1950 1962 Kolkata
33 Transportes Aéreos da Índia Portuguesa 1955 1961 Goa
34 Airways (India) 1945 1955 Kolkata
35 Orient Airways 1946 1955 Kolkata
36 Jupiter Airways 1948 1953 Chennai
37 Air Services of India 1936 1953 Mumbai
38 Himalayan Aviation 1948 1953 Kolkata
39 Deccan Airways 1945 1953 Hyderabad
40 Indian Overseas Airlines 1947 1950 Mumbai
41 Ambica Airlines 1947 1949 Bombay
42 Indian Transcontinental Airlines 1933 1948 Kolkata
43 Tata Airlines 1932 1946 Mumbai
44 Indian National Airways 1925 1945 Delhi
45 Irawaddy Flotilla & Airways 1934 1939 Chennai

Profile of Major airline service providers in India

Air India
Vision of Air India0

To be the leader in Indian aviation and India’s Ambassador to the world.

Mission of Air India

Customer

 Provide safe, reliable and on-time services

 Deliver the highest quality of service around the world
 Be the epitome of Indian hospitality

Processes

 Continuously improve standards of safety and efficiency

 Operate and maintain a young and modern fleet
 Provide the best and most efficient network
 Create economic value

People

 To be the employer of choice

 Build a highly motivated and professional team
 Maintain highest degree of transparency and ethics
 Be a responsible corporate citizen

India’s Ambassador

 Be India’s flag carrier in spirit and action

 Provide seamless travel within India and the world
 Connect Indians worldwide

Values

 Zeal to excel and zest for change

 Integrity and fairness in all matters
 Respect for dignity and potential of individuals
 Strict adherence to commitments
 Ensure speed of response
 Foster learning, creativity and team-work
 Loyalty and pride in the Company

Profile of Air India

Air India is the flag carrier airline of India. It is owned by Air India Limited, a government-owned

enterprise, and operates a fleet of Airbus and Boeing aircraft serving 90 domestic and international

destinations. The airline has its hub at Indira Gandhi International Airport, New Delhi, alongside

several focus cities across India. Air India is the largest international carrier out of India with an
18.6% market share. Over 60 international destinations are served by Air India across four

continents. Additionally, the carrier is the third largest domestic airline in India in terms of

passengers carried (after IndiGo and Jet Airways) with a market share of 13.5% as of July 2017. The

airline became the 27th member of Star Alliance on 11 July 2014.

The airline was founded by J. R. D. Tata as Tata Airlines in 1932; Tata himself flew its first single-

engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay's Juhu aerodrome and later

continuing to Madras (currently Chennai). After World War II, it became a public limited company

and was renamed as Air India. On 21 February 1960, it took delivery of its first Boeing 707 named

Gauri Shankar and became the first Asian airline to induct a jet aircraft in its fleet. In 2000–01,

attempts were made to privatise Air India and from 2006 onwards, it suffered losses after its merger

with Indian Airlines.

Air India also operates flights to domestic and Asian destinations through its subsidiaries Alliance Air

and Air India Express. Air India's mascot is the Maharajah (Emperor) and the logo consists of a flying

swan with the wheel of Konark inside it.

History of Air India As Tata Air Services and Tata Airlines (1932–1945)

Air India had its origin as Tata Air Services later renamed to Tata Airlines founded by J. R. D. Tata of

Tata Sons, an Indian aviator and business tycoon. In April 1932, Tata won a contract to carry mail for

Imperial Airways and the aviation department of Tata Sons was formed with two single-engine de

Havilland Puss Moths. On 15 October 1932, Tata flew a Puss Moth carrying air mail from Karachi to

Bombay (currently Mumbai) and the aircraft continued to Madras (currently Chennai) piloted by

Nevill Vintcent, a former Royal Air Force pilot and friend of Tata. The airline fleet consisted of a Puss

Moth aircraft and a de Havilland Leopard Moth. Initial service included weekly airmail service

between Karachi and Madras via Ahmedabad and Bombay. In its first year of operation, the airline

flew 160,000 miles (260,000 km), carrying 155 passengers and 9.72 tonnes (10.71 tons) of mail and

made a profit of ₹60,000 (US$940). The airline launched its first domestic flight from Bombay to
Trivandrum with a six-seater Miles Merlin. In 1938, it was re-christened as Tata Air Services and later

as Tata Airlines. Colombo in Ceylon (now Sri Lanka) and Delhi were added to the destinations in 1938.

During the Second World War, the airline helped the Royal Air Force with troop movements, shipping

of supplies, rescue of refugees and maintenance of aircraft.[15]

Post-independence as Air India and Nationalisation (1947–2000)

After World War II, regular commercial service was restored in India and Tata Airlines became a

public limited company on 29 July 1946 under the name Air India. After Indian independence in

1947, 49% of the airline was acquired by the Government of India in 1948. On 8 June 1948, a

Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off from Bombay

bound for London Heathrow marking the airline's first international flight.

In 1953, the Government of India passed the Air Corporations Act and purchased a majority stake in

the carrier from Tata Sons though its founder J. R. D. Tata would continue as Chairman till 1977. The

company was renamed as Air India International Limited and the domestic services were transferred

to Indian Airlines as a part of a restructuring. From 1948 to 1950, the airline introduced services to

Nairobi in Kenya and to major European destinations Rome, Paris and Düsseldorf. The airline took

delivery of its first Lockheed Constellation L-1049 and inaugurated services to Bangkok, Hong Kong,

Tokyo and Singapore.

Jet Airways

Vision of Jet Airways

“To be amongst the most innovative and admired brands, renowned for service excellence”.

Mission of Jet Airways

  Jet Airways will be renowned for reaching out to all our guests with a heart-warming spirit

that is our unique Indian hospitality.

 We will delight our guests with genuine care and personalised quality service, along with

consistent, reliable and efficient operations.

 We will innovate and deliver service excellence, setting standards for competition to

emulate.
 Jet Airways will be the most sought-after place to work.
 Jet Airways will achieve these objectives whilst simultaneously ensuring sustainable

profitability for all stakeholders.

Jet Airways is a major Indian international full-service airline based in Mumbai. In October 2017, it

was the second-largest airline in India after IndiGo with an 17.8% passenger market share. It

operates over 300 flights daily to 68 destinations worldwide from its main hub at Chhatrapati Shivaji

International Airport (Mumbai) and secondary hubs at Amsterdam Airport Schiphol, Chennai

International Airport, Indira Gandhi International Airport (New Delhi), Kempegowda International

Airport (Bengaluru) and Netaji Subhas Chandra Bose International Airport (Kolkata).

Incorporated in April 1992 as a limited liability company, the airline began operations as an air taxi

operator in 1993. It began full-fledged operations in 1995 with international flights added in 2004.

The airline went public in 2005 and in 2007, it acquired Air Sahara. It became the largest carrier by

passenger market share in the country by 2010, a position it held till 2012.

History of Jet Airways

Jet Airways was incorporated as a limited liability company on 1 April 1992. It started operations as

an air taxi operator on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. The airline was

granted a scheduled airline status on 14 January 1995. On 12 May 1994, all the shares were

transferred to Tailwinds International, whose equity capital was held by Naresh Goyal (60%), Gulf Air

(20%) and Kuwait Airways (20%). In October 1997, as per the directive of Ministry of Civil Aviation

forbidding foreign investment in passenger airlines, Goyal took control of the entire company. The

airline launched its first international flight in March 2004 from Chennai to Colombo. The company
was listed on the Bombay Stock Exchange and became public company on 28 December 2004, with

Goyal retaining 51% ownership of the stock.

In January 2006, Jet Airways announced its intention to acquire Air Sahara for US$500 million in an

all-cash deal; however, the deal fell through in June 2006. On 12 April 2007, the deal was back on

track with Jet Airways agreeing to pay ₹14.5 billion (US$230 million). On 16 April 2007, Air Sahara

was renamed as JetLite and was marketed between a low-cost carrier and a full-service airline.

JetLite became a wholly owned subsidiary of Jet Airways. In August 2008, Jet Airways announced its

plans to integrate JetLite into Jet Airways. In October 2008, Jet Airways laid off 1,900 of its

employees, who were later re-instated due to intervention from the Ministry of Civil Aviation. In

October 2008, Jet Airways entered into an alliance with rival Kingfisher Airlines for code-sharing on

domestic and international flights, collaboration on frequent-flyer program and sharing crew and

ground handling equipment. On 8 May 2009, Jet Airways launched another low-cost brand, Jet

Konnect. It operated a fleet of Boeing 737 Next Generation and ATR 72 aircraft and operated on

profitable short-haul routes with higher passenger load factors.

In the third quarter of 2010, Jet Airways became the largest airline in India with a passenger market

share of 22.6%. In July 2012, the airline officially sought government approval to join Star Alliance.

Jet Airways is not a member of Star Alliance as of 2017. In June 2011, it became the first domestic

airline in India to ban meat products and liquids in check-in baggage. Jet Airways merged the JetLite

brand into Jet Konnect on 25 March 2012 and started offering business-class seats after the demise

of Kingfisher Airlines. In 2013, Etihad Airways planned to buy a stake in the airline following the

government's announcement in September 2012 that foreign airlines could take a stake of up to 49%

in Indian carriers. On 24 April 2013, Jet announced that it was ready to sell a 24% stake in the airline

to Etihad for US$379 million. The deal which was expected to be signed in January 2013 was

postponed and was completed on 12 November 2013.

In 2013, the airline lowered prices and entered into fare war with low-cost carriers IndiGo and

SpiceJet due to falling passenger demand. In February 2013, the airline's market value dropped by

₹4.84 billion (US$76 million) owing to falling share prices. Jet Airways made profits in the third

quarter of the financial year 2013–14, after posting losses over the previous year. Jet Airways

announced on 11 August 2014 that it would phase out Jet Konnect by the end of the year as part of

plans to re-position itself as a uniform full-service operator. On 1 December 2014, Jet Konnect was

fully merged with Jet Airways, making it the third full-service airline in India besides Air India and

Vistara. In December 2015, Jet Airways announced the closure of its scissor hub at Brussels Airport

by March 2016 and the opening of new hub at Amsterdam Schiphol Airport effective 27 March 2016.

As of February 2016, it is the second largest airline in India after IndiGo with a 21.2% passenger

market share.

SpiceJet

SpiceJet's vision

SpiceJet's vision is “to address that and ensure that flying is for everyone”.

SpiceJet’s mission

“To become India’s preferred low-cost airline, delivering the lowest air fares with the highest

consumer value, to price sensitive consumers. We hope to fulfil everyone’s dream of flying”.

Profile of SpiceJet

The origins of SpiceJet can be tracked back to March 1984 when the company was established by

Indian industrialist S. K. Modi to provide private air taxi services. On 17 February 1993, the company

was named as MG Express and entered into technical partnership with the German flag carrier

Lufthansa. The airline provided passenger and cargo services under the name of Modiluft before

ceasing operations in 1996.

In 2004, the company was acquired by Ajay Singh and the airline planned to restart operations as

SpiceJet following the low-cost model. SpiceJet leased two Boeing 737-800 aircraft in 2005 and

planned to order 10 new aircraft for expansion. SpiceJet opened bookings on 18 May 2005 and the

first flight was operated between Delhi and Mumbai on 24 May 2005.

SpiceJet is a leading low fare Indian airline. It is a major carrier in Indian domestic market and has

operations spread across 8 international destinations in South Asia and Gulf, including Nepal, Sri

Lanka and UAE. SpiceJet Limited is headquartered at Gurgaon (Delhi NCR) and equity shares of the

company are traded on the BSE Ltd.

Mr. Ajay Singh, is the majority shareholder (60%) and Promoter of the company. Among the other

key management personnel, Mr. Sanjiv Kapoor is the Chief Operating Officer and Mr. Kaneswaran

Avili is the Chief Commercial Officer.

The airline operates more than 210 daily flights to 42 destinations, including 34 Indian and 8

international cities. By offering low air fares, SpiceJet has made flying more affordable for more

Indians. SpiceJet connects its network using next generation fleet of 19 Boeings (18 737-800 and 1

900ER) aircraft along with 15 Bombardier Q-400 aircraft. Bombardier fleet is more focused on Tier II

and Tier III cities. SpiceJet has been pioneer in launching many innovative products for customers

and has been first in many areas. The airline launched more spacious seating arrangement called

“SpiceMAX” whereas “SpiceFlex” facilitates early check in and Baggage claims among others.

Through its unique product offerings like ‘Corporate Traveller’ and ‘SME Traveller’ SpiceJet caters to

demand from a vast range of customer groups. The airline also offers ‘On Time Guarantee’ (OTG)

program that assures passengers that if a flight is delayed for any reason that are within the control

of the airline, then flyers will be automatically compensated with discount vouchers for their next

travel. In its employee centric approach SpiceJet launched weekend uniforms for its crew members,

the first Indian airline to do so. It is the only Indian airline, and perhaps the only Asian airline to
promote its own employees on aircraft livery. SpiceJet has chosen fleets which allows for greater

efficiency in maintenance, and supports the low-cost structure.

Go Airlines

Vision Go Airlines

“Go Airlines strives to maintain and enhance passenger’s perception of its services, and in doing so,

will consistently endeavour to improve the Quality and Reliability of its operations.”

Mission of Go Airlines

“To provide Safe, Secure and Efficient transportation at all times with attention to essential details

that lead to creating a unique service differentiation and further strengthening and maintaining our

position in the market.”

Profile of Go Air

Go Airlines (India) Ltd. is an aviation foray of the Wadia Group. It operates under the brand GoAir. In

November 2005, GoAir launched its operations as a low-fare carrier to commoditize air travel and

offer airline seats at a marginal premium to train fares across India. The airline currently operates

over 230 daily flights and approximately 1600 weekly flights across 23 destinations.

The GoAir route network spans across prominent business metros as well as key leisure destinations

across the Indian subcontinent. GoAir currently renders its services at the airports in Ahmedabad,

Bagdogra, Bengaluru, Bhubaneswar, Chandigarh, Chennai, Delhi, Goa, Guwahati, Hyderabad, Jaipur,

Jammu, Kochi, Kolkata, Leh, Lucknow, Mumbai, Nagpur, Patna, Port Blair, Pune, Ranchi, and Srinagar.

Through this route network GoAir ensures a smart value-for-money option for both business and

leisure travellers, without compromising on either safety or service factors.

GoAir's distribution network has been well-researched. Following a thorough evaluation of the

available mediums, the airline has introduced a gamut of options, specially designed to make tickets
very accessible to its passengers. GoAir hosts convenient online booking options on its website

www.GoAir.in wherein a passenger or his associate can book GoAir tickets anytime round the clock,

365 days a year from the comfort of their home. For those passengers who do not have a credit or a

debit card or access to a web networked computer, tickets can be booked from other distribution

mediums including Travel Agents or via GoAir’s Call Centres. Tickets can also be booked from GoAir

airport counters.

GoAir is positioned as 'the Smart People's Airline'. Its captivating theme, 'Fly Smart' is aimed at

offering passengers a consistent, quality-assured, and time-efficient service through 'pocket-friendly'

fares. The airline uses a state-of-the-art Airbus A320 aircraft fleet.

GoAir executes its business model on the basic three-tier principle - 'punctuality, affordability, and

convenience'. The airline has recently partnered with Navitaire, a leading technology provider of

automated aviation and travel-related software solutions, for its Passenger Service System . By

adopting such technology solutions, GoAir is equipped with superior process efficiency, thereby

enabling its passengers to save great amount of time.

Adding a milestone to its journey, in October 2016, GoAir passed the International Air Transport

Association's Operational Safety Audit (IOSA). As part of its expansion plan, GoAir has placed a firm

order of 144 Airbus A320 Neo aircraft. The delivery of the same has begun and currently has 23

Aircraft as part of its fleet. The Wadia Group has been in the forefront of corporate India for over

250 years. Today, the Group is broadly diversified into several growth industries covering aviation,

textiles, chemicals, petrochemicals, plantations, foods, electronics, light engineering, health,

laminates, real estate and consultancy. The Wadia Group has consistently emerged as a market

leader in every arena it had stepped in. Over the years, the Wadia Group has developed an enviable

record of successfully managing diverse technologies. The Wadia Group has earned a reputation as a

household brand through its businesses like Britannia and Bombay Dyeing.

AirAsia India
Vision of AirAsia India

“To be the largest low-cost airline in Asia and serving the 3 billion people who are currently

underserved with poor connectivity and high fares”.

Mission of AirAsia India

 To be the best company to work for whereby employees are treated as part of a big family
 Create a globally recognized ASEAN brand
 To attain the lowest cost so that everyone can fly with AirAsia
 Maintain the highest quality product, embracing technology to reduce cost and enhance service

levels

Profile of AirAsia India

In Feb. 2013, with the Indian government allowing a foreign direct investment of up to 49% in

airlines, AirAsia Berhad applied to the Indian Foreign Investment Promotion Board (FIPB) seeking

approval for commencing its operations in India. In March 2013, AirAsia announced that it would

establish a joint venture with Tata Sons and Telestra Trade place with Tata Sons representing the

airline with two non-executive directors in the board. The airliner planned to operate with the

world's lowest unit cost of ₹1.25 per available seat Kilometre and a passenger break-even load

factor of 52%. It also planned to hedge 100% of its fuel requirements for the first three years and to

achieve an aircraft turnaround time of 25 minutes.

AirAsia planned to begin operations to various tier 2 and tier 3 cities with Chennai International

Airport as its main operating base. According to KPMG, the introduction of AirAsia was expected to

cause another price war, ultimately leading to an increase in air traffic and some consolidation in

the Indian aviation sector. AirAsia initially invested an amount of US$50 million and in preparation

for its operations in India, it struck deals with online and offline travel agents. On 3 March 2013, the

FIPB officially permitted AirAsia to rent or lease aircraft and to carry cargo on its scheduled flights.

The airline then applied for permission to schedule aircraft and transport passengers, which the

FIPB accepted on 6 March.

AirAsia India was established on 28 March 2013 and became the first foreign airline to set up a

subsidiary in India. In April, the airline started recruiting candidates for pilots and cabin crew. As

the final procedure to obtain Air Operator Permit, a proving flight was conducted on 1 and 2 May

2014 flying from Chennai to Kochi, Bangalore and Kolkata. On 7 May 2014, the DGCA issued an Air

Operator Permit to the company. On 30 May 2014, the airline announced the shifting of its base to

Bangalore and its first flight from there to Goa. AirAsia operated its maiden flight on 12 June 2014.

In June 2015, the airline made Indira Gandhi International Airport, Delhi its secondary hub for

North Indian operations. In August 2015, Tata Sons increased its stake to 40.06% from 30% earlier

by injecting fresh equity while Telestra's share was reduced to 10% from 20%. As of May 2017,

AirAsia India is the fourth largest low-cost carrier in India, far behind IndiGo, SpiceJet and GoAir,

with a market share of 3.3%.

Vistara

Profile of Vistara

Tata SIA Airlines Limited, operating as Vistara, is an Indian domestic airline based in Gurgaon with

its hub at Delhi-Indira Gandhi International Airport. The carrier, a joint venture between Tata Sons

and Singapore Airlines, commenced operations on 9 January 2015 with its inaugural flight between

Delhi and Mumbai. The airline had carried more than two million passengers by June 2016 and as

of May 2017, has a 3.3% share of the domestic carrier market, making it the 6th largest domestic

airline. The airline serves twenty-one destinations with a fleet of Airbus A320-200 aircraft. Vistara

was the first airline to introduce premium economy seats on domestic routes in India.

The airline was founded in 2013 as a joint venture (JV) between India's conglomerate Tata Sons and

Singapore Airlines (SIA). The two companies had made a bid in the mid-1990s to launch a full-

service carrier in India that was unsuccessful, being denied regulatory approval by the Indian
government. With India opening its airline sector for 49 percent foreign direct investment (FDI) in

2012, Tata and SIA once again decided to float a JV airline company in India. The JV, Tata SIA Airlines

Limited (TSAL), was envisaged as a premium full-service carrier to cater to the demands of high-end

business travellers in India's civil aviation market dominated by low-cost carriers. India's Foreign

Investment Promotion Board approved the JV in October 2013, allowing SIA to take a 49 percent

stake in the airline. The two parent companies initially pledged to invest a combined US$100mn as

start-up capital, with Tata Sons owning 51 percent and Singapore Airlines owning the remaining 49

percent. This was part of Tata's second major foray into the aviation sector along with a minority

stake in AirAsia India. The company's first venture, Tata Airlines, was established in the 1930s and

later became the flag carrier Air India after nationalization.

The company unveiled its brand identity "Vistara" on 11 August 2014. The name was taken from

the Sanskrit word Vistara, meaning "limitless expanse". Vistara received its air operator's certificate

from the Directorate General of Civil Aviation on 15 December 2014 and started operations on 9

January 2015. Vistara became the first carrier to operate domestic services out of the new Terminal

2 at Mumbai's Chhatrapati Shivaji International Airport. On 24 August 2015, Vistara inaugurated the

Aviation Security Training Institute, an in-house institute for training its cockpit and cabin crew,

security staff and others related to aviation industry. The institute has secured the necessary

approvals from the nodal body Bureau of Civil Aviation Security.

IndiGo Airlines

IndiGo was founded in 2006 as a private company by Rahul Bhatia of InterGlobe Enterprises and

Rakesh Gangwal, a United States-based NRI. InterGlobe had a 51.12% stake in IndiGo and 47.88%

was held by Gangwal's Virginia-based company Caelum Investments. IndiGo placed a firm order for

100 Airbus A320-200 aircraft in June 2005 with plans to begin operations in mid-2006. IndiGo took

delivery of its first Airbus aircraft on 28 July 2006, nearly one year after placing the order. It

commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati. By
the end of 2006, the airline had six aircraft and nine more aircraft were acquired in 2007. In

December 2010, IndiGo replaced state-run carrier Air India as the third largest airline in India,

behind Kingfisher Airlines and Jet Airways with a passenger market share of 17.3%.

In 2011, IndiGo placed an order for 180 Airbus A320 aircraft in a deal worth US$15 billion. In

January 2011, after completing five years of operations, the airline got permission to launch

international flights. The airline launched international services in September 2011. In December

2011, the DGCA expressed reservations that the rapid expansion could impact passenger safety.

In February 2012, IndiGo took delivery of its 50th aircraft, less than six years after it began

operations in 2006. For the quarter ending March 2012, IndiGo was the most profitable airline in

India and became the second largest airline in India in terms of passenger market share. On 17

August 2012, IndiGo is India’s largest passenger airline with a market share of 39.4% as of

November, 2017.

In January 2013, IndiGo was the second-fastest-growing low-cost carrier in Asia behind Indonesian

airline Lion Air. In February 2013, following the announcement of the civil aviation ministry that it

would allow IndiGo to take delivery of only five aircraft that year, the airline planned to introduce

low-cost regional flights by setting up a subsidiary. Later, IndiGo announced that it planned to seek

permission from the ministry to acquire four more aircraft, therefore taking delivery of nine aircraft

in 2013. As of March 2014, IndiGo is the second-largest low-cost carrier in Asia in terms of seats

flown.

In August 2015, IndiGo placed an order of 250 Airbus A320 neo aircraft worth $27 billion, making it

the largest single order ever in Airbus history. IndiGo announced a ₹3,200 crore (US$500 million)

initial public offering on 19 October 2015 which opened on 27 October 2015.

Space For Comments / Corrections / Inclusions / Exclusions Etc.

Space For Comments / Corrections / Inclusions / Exclusions Etc.