Indian Aviation Industry: Sky Is Not The Limit

Going by the developments in the Indian aviation sector in the last few years, there stands no doubt that there is enormous scope for growth in Indias air traffic over the next few years. Today, the Indian aviation market is estimated to be around Rs 25,000 crore and is growing rapidly with the entry of numerous new players. The aviation industry in India began with the birth of Tata Airlines, through the business relationship between Mr Nevill Vintcent, a Royal Air Force pilot and Mr JRD Tata, the first Indian to get an A-licence. Tata Airlines became Air India in August 1946. In 1953, the Air Corporation Act nationalised all existing airline assets and established the Indian Airline Corporation and Air India International for domestic and international air services, respectively. These two companies enjoyed monopoly power in the industry until 1991, when private airlines were given permission to operate charter and non-scheduled services under the Air Taxi scheme to boost tourism. These carriers were not allowed at the time, to fly scheduled flights or issue air tickets to passengers. In 1994, following the repeal of the Air Corporation Act, private players were permitted to operate scheduled services. The next big change in the industry came in late 2003 with the emergence of Indias first no-frill airlines, Air Deccan. It revolutionised the industry, offering fares as low as INR 500 (roughly $ 10), compared to full service fares. The key headlines in 2007 are going to be on dramatic increase in tourism and the "deseasoning" of many destinations, which will again stir a surge in the aviation industry. The Indian tourism sector now accounts for 320 million domestic travellers and three million inbound travellers, mostly comprising Non- Resident Indians (NRIs) and People of Indian Origin (PIOs). This double-digit growth expected in the travel and tourism industry will surely reflect on the Indian aviation industry. While international tourism, both inbound and outbound is growing rapidly, India will be most impacted by domestic growth. The reason being that several destinations that were purely seasonal (for e.g. Goa from December to March) are now witnessing the flattening of these peaks to some extent and its believed that this process will continue and gain further momentum. E-ticketing has also played a pivotal role by reducing the obscure task of manual booking of airline tickets and the cost of issuing e-tickets is expected to reduce drastically. However, there are some hindrances that the Indian aviation industry needs to overcome like more airports, pilots, flight crew and less-stressed air traffic controllers. Apart from the visible infrastructure level improvements, modernisation, HR issues, aviation methodology, technological growth and controlling traffic congestion are some of the other issues that demand careful and timely attention. But, right now the scales seem to be in the favour of the Indian aviation industry, for which the sky is not the limit. Indian skies are more open than ever before. International airlines are servicing passengers right from Amritsar to Ahmedabad to Kochi, greenfield airports are emerging at Hyderabad and Bangalore and plans to modernise and restructure the two gateway airports are moving ahead aggressively. On the other hand, private domestic carriers are now flying to international routes like Kuala Lumpur, Singapore and London and have ambitious plans to expand and spread wings to the US as well.

Model of the new Hyderabad Airport to be operational by March 2008

During the year 2004-05, air transport witnessed a growth of nearly 25 per cent, giving reason for the government to have an optimistic outlook and expect an average growth rate of 10 per cent by the year 2010 in the sector. The years 2004-05, 2005-06 and 2006-07 have been years of record growth in air traffic in the country. During the period of April- December 2005, domestic and international traffic grew by 24.2 per cent and 18 per cent, respectively. While international and domestic cargo during the same period recorded a growth of 11.7 per cent and 6.6 per cent. This growth has been the second highest in the world, next to China. Further, during the period April- September 2006, international and domestic passengers recorded a growth of 15.8 per cent and 44.6 per cent, respectively, leading to an overall growth of 35.5 per cent. During the same period, international and domestic cargo recorded growth of 13.8 per cent and 8.7 per cent, respectively, resulting in an overall growth of 12.0 per cent. New Players On The Runway Several scheduled airlines are operating in the country. Besides public sector carriers and the main private carrier Jet Airways, new private players like Air Deccan, Kingfisher Airlines, SpiceJet, Paramount and GoAir have forayed into Indian skies. Two more private carriers Inter Globe aviation with Indigo Airlines and Indus Airways have secured "no objection certificates" (NOC) from the government and are expected to start operations after getting the go-ahead from the Directorate-General of Civil Aviation. Yet another private carrier, Magic Air, is awaiting various clearances from the ministries and departments. If the present trend of the growth can be sustained, the aviation industry can become one of the major vehicles for take off by the Indian economy in the coming decade. It is around this time that the economy is expected to acquire a size comparable to Chinas. The Civil Aviation Ministry appears hopeful of outperforming China as a preferred destination for aviation and tourism. LLCs are here to stay It has taken some time for the low-cost airline industry to carve a niche for themselves, but the wallet-friendly low-cost carriers (LLCs) are here to stay. When Air Deccan introduced airfares almost equalling the AC II-tier train fares, the response from the leading domestic airlines like Indian Airlines, Jet Airways and Sahara Airlines was immediate. Slashed rates and Advanced Purchase schemes (Apex) swiftly began to take shape, resulting up to 30 to 40 per cent slashed fares for apex fares, compared to the original prices. Barely a year after Air Deccan took off came the launch of Vijay Mallyas Kingfisher Airlines, followed by SpiceJet and GoAir. Today, the number of LLCs has multiplied in a matter of months. Continuing a steady progress, LLCs are slowly eating into the aviation market share, capturing almost one third of the total market.

The Centre for Asia Pacific Aviation forecasts Asia Pacific and Middle East LCCs will expand their seat capacity by over 230 per cent by 2012 over current levels or around 40-50 per cent capacity growth each year over the next five years, according to the Outlook 2007 report. "A key story in the Asia-Pacific region for 2006 was the capacity restraint of the full service airlines, resulting in higher load factors. But there was a price. They lost market share, particularly to European and Middle East carriers, as well as the fast-growing Asia-Pacific LCCs", informed Mr Peter Harbison, Executive Chairman of the Centre for Asia Pacific Aviation. According to the Outlook report, Asia is a two-speed market, with flag carriers growing much more slowly than other airlines, including carriers of India and China and the LCC sector. Association of Asia Pacific Airlines carriers increased aggregate capacity (ASKs) by just 0.9 per cent in 2006, while Asia-Pacific LCC capacity surged 55 per cent year-on-year in 2006 to account for 8.9 per cent of the regional total and close to 11 per cent in the last quarter of 2006. "Based on recent LCC growth rates and aircraft orders, their share could reach 20 per cent by the end of this decade, with much higher levels of penetration in such markets as India, Thailand, Australia, Malaysia and Indonesia. The LCC share in Asia was less than 1 per cent in 2001. Such an outcome would eclipse the pace of LCC development in every other geographic region, albeit a delayed development in this region", said Mr Harbison. Aircraft deliveries over the next five years will also be focused on the fastest growing markets in particular, China and India where there is great potential for demand growth to absorb new capacity additions, according to the report. Exploring New Destinations AI has identified the need for non-stop operations to the US and is planning 12 new destinations in a phased manner to San Francisco, Washington, Houston, Toronto, Manchester, Beijing, Seoul, Taipei, Sydney, Lagos, Mauritius and South Africa. It has already started flights to Shanghai, Los Angeles, Seoul, Manchester and Toronto. Private airlines too have started operating to Kathmandu, Colombo, Kuala Lumpur, Bangkok and Singapore. Jet Airways has mounted flights to London from Delhi and Mumbai and plans to begin operations to the US. The open sky policy and liberalised bilateral agreements with number of countries have led to a quantum jump in forging greater connectivity to and from India, beginning with the UK whose carriers have been given access to Bangalore, Hyderabad and Kochi, besides the four metro destinations. Reciprocally, Indian carriers can fly to Glasgow, Edinburgh and Bristol in addition to London, Manchester and Birmingham. A revised air services agreement was signed with US on April 14, 2005 granting unlimited access for the designated airlines to any points of call in each others territory as against four airports under the earlier agreement. Thus, there is American Airlines mounting direct, non-stop flights on the Chicago- Delhi sector in code-sharing agreement with Air Sahara (now part of Jet Airways) and Continental Airlines operating non-stop long haul flights on Delhi-New York sectors.

Surging demand for air cargo While the passenger transportation sector is already bustling with activity, the interest of various aviation playerspassenger as well as air cargo operatorsis shifting to the largely untapped air cargo sector. Civil aviation minister Mr Praful Patel has indicated that the government is looking progressively at liberalising the air cargo sector, with plans to allow 74 per cent foreign direct investment (FDI). According to analysts, air cargo has not even scratched the surface of cargo industry in India. As per the Airbus market outlook for the next 20 years, the number of dedicated freighters in India will go up from the current dismal figure of 8 to around 165 aircraft by 2025. Air cargo accounts for only 5 per cent to 7 per cent of the total cargo in terms of volume, but in terms of value, air cargo stands for 35-40 per cent of the total cargo trade, according to sources. Though Indian air-cargo is a fairly nascent industry, IATA is, however, bullish on the positive outlook for India. Need For Infrastructure The growth of the civil aviation sector can be seen from passenger and aircraft movements. Against 5.09 lakh aircraft movements in 2001-02, the number was 7.30 lakh during 2004-05. Passenger movements went up from 3.9 crore to 5.9 crore during the same period. All these paint a rosy picture of a booming civil aviation sector. But the country has grossly neglected development of airport and related infrastructure to keep pace with the growth in the number of airlines and air travellers. Nearly 85 per cent of the total passenger traffic is handled by 10 airports, which also generate 80 per cent of the total revenue, only 11 are profitable and of these Delhi and Mumbai account for 49 per cent of the total passenger traffic and 33 per cent of the total revenue. The status of Delhi and Mumbai airports which was inadequate has now started gaining momentum following the revamp exercise undertaken by the government. Delhi, Mumbai Airport Makeover The government has taken up the upgradation programme of Delhi and Mumbai airports through the joint venture route. The joint venture companies has been mandated to undertake the capital expenditure of Rs 2,800 crore at Delhi and Rs 2,600 crore at Mumbai in the first five years. The expenditure on Mumbai airport is likely to be Rs 5,900 crore during the span of 2005-19 and for Delhi Airport Rs 7,900 crore during 2005-24. Commenting on the upgradation of major airport, Civil Aviation Minister, Mr Praful Patel, recently said that India was embarking on a massive drive to modernise the existing airports and build new ones at a cost of $ 10 billion over the next four years. The projects involve both upgrading and building airports in 41 cities. Sounding bullish on the growth of the Indian civil aviation sector, he said the industry was likely to register a 30 per cent growth. New Projects Move At Swift Pace

Work on two new greenfield airports has started at Bangalore and Hyderabad. The Devanahalli project near Bangalore is being implemented on a build, own, operate and transfer basis (BOOT) basis with publicprivate participation (PPP).

The Karnataka government and the Airports Authority of India (AAI) together hold 26 per cent of equity and the strategic joint venture partners hold the balance 74 per cent. A consortium led by Siemens of Germany with Unique Zurich and Larsen & Toubro India has been chosen as the JV partner. After initial hiccups and procedural delays, the work has begun and the airport is likely to be ready for operation by 2008. The total cost of the project has been estimated at Rs 1,400 crore. A similar greenfield airport at a cost of Rs 1,700 crore is being developed in Shamshabad, near Hyderabad, also on a BOOT basis with public-private participation. The consortium consists of GMR Enterprises and Malaysian Airport Holdings Berhad and the airport project is likely to be completed by the year 2008. Simultaneously, the AAI has also begun work to modernise 35 selected non-metro airports to world class standards in a phased manner with focus on air side and city side development. The project to develop 35 non-metro airports is under various stages of implementation. Future Growth Of Non-Metro Airports Traffic growth at non-metro airports is expected to exceed that of the metro airports in near future. According to research undertaken by the rating agency Crisil, Indias nonmetro airports are expected to host as many as 74 million passengers by the year 2009-10almost four times than the 19 million passengers at the metro airports. The basis behind the projections are that there are 35 non-metro airports in the country, compared to 5 metro airports. Right on the cue, private airlines have lined up plans to reach 31 new destinations. These include tourist destinations like Pathankot and Bagdogra as well as commercial and crucial destinations like Coimbatore and Porbander. Of the nine airlines, Air Deccan has the maximum number of non-metro airports on its radar. Needless to say, such growth in the air traffic entails major improvement in airport facilities. And this spells mammoth opportunities for the private sector. The total investment for the 35 non-metro airports is expected to be well over Rs 6,000. Of this, Rs 3,266 crore is to be spent on building airport facilities, while Rs 1,396 crore will go towards air side development, which will be primarily handled by AAI. However, it is likely that many private sector players will want to be involved in the city side development. The total investment in this area is expected to cost about Rs 1,500 crore. Governments initiative to carry on the programme of upgrading the metro and the non-metro airports augurs much too well for the countrys civil aviation industry. However, it would be well imperative that the initiatives are effectively implemented and sustained policy reforms are undertaken to make the sector remain buoyant for the time to come. Impact of M&As The market dynamics of aviation industry are undergoing major changes, thanks to the new trend of mergers and acquisitions (M&As). The industry recently witnessed two mega mergers, first Indian with Air India, followed by Jet-Sahara. After the mergers go through the paces, two strong players will together command over 50 per cent of the market share, and 60 per cent of the countrys aircraft fleet. Close on their heels will be the other full-service carrier, Kingfisher Airlines, which is in the process of ramping up its fleet size.

"With the two mergers, India will set the ball rolling for further consolidation and mergers and acquisitions. More airlines are likely to be keen to grow via acquisition to expand their market share, subject to an appropriate strategic fit," said Mr Kapil Kaul, CEO, Centre of Asia Pacific Aviation (India & Middle East). More mergers in the sector may see the industry turning from a buyers market to a sellers market, he added. According to industry players its a very positive development for the aviation industry. The consolidation will help the industry improve passenger yields and its overall profitability. Further, it is important for the industry to have strong players. In a market where demand is growing, mergers can bring lot of synergies. Indeed, with such multitude of activities happening in air, the vision for the Indian aviation industry seems to be reaching a higher horizon. The sky, certainly, does not seem to be the limit! (Inputs by Mr Partha Pratim Basistha)

"The vibrancy of the Indian aviation market has been overwhelming"

Mr M. Thiagarajan, Managing Director, Paramount Airways Current scenario of Indian aviation industry Industry estimates suggest passenger air traffic in India could double to 50 million passenger journeys a year by 2010. In the past twelve months alone, airlines have carried 25.5 million domestic passengers and 22.4 million international passengers. The vibrancy of the Indian aviation market has been overwhelming with over 135 aircraft having been added in the past two years alone and by 2010 Indias fleet strength will stand at around 500-550. Centre of Asia Pacific Aviation (CAPA) estimates domestic traffic to grow by 25-30 per cent annually and international traffic 15 per cent until 2010. The domestic market size is expected to cross 60 million and international traffic to 20 million by end of 2010. Expected growth rate & future prospects

According to a report from ASSOCHM, the airline industry is pegged to rise to Rs 35,000 crore by 2010. It also talks about investment of up to Rs 1,50,000 crore in this sector by 2020 as estimated by CAPA. The future for Indian aviation is very bright and its growth will be in tandem to the burgeoning economic growth. As more and more mid-tier towns gets networked with metros, we would see a huge inflow of traffic emanating from these markets. Regional airlines will play a key role in the growth of the industry catering to the growing demand from smaller towns as well. Facilities required First of all, the airports infrastructure facilities which have been blue printed should get on to the fast track. It is reported that the government is looking at revamping the 35 non-metro airports, besides taking Delhi and Mumbai airports to international size and stature. Public-private partnership (PPP) could see challenges being overcome in airport development work by allowing private developers. Private airports catering to cargo traffic is another good idea being discussed and this could be very interesting with regard to emerging retail boom in India. Upgrading the cargo and logistics infrastructure in key airports is critical, particularly at a time when the dimensions of growth is changing with the changing business climate. As regional networking assures importance in the overall contribution of passengers movement, it is important the industry and the government look at creating suitable infrastructural facilities in this segment also. Required investments in infrastructure When there is heavy traffic inflow happening consequently, it is also imperative to have international class facilities in our airports. Airports should be self-sufficient with malls and shopping arcades which are reflective of our growth and progress. Time spent in airports like Singapore is an experience in itself and they are not congested inspite of heavy traffic flow. Concourses and bays connected to the terminals will truly give a world-class appeal. Whenever possible the government should encourage private developers to take on greenfield and brownfield airports, which can side by side help in the development activity saving precious time. Emergence and role of LCCs All businesses across industry have to watch their costs and maintain a competitive edge. Hence, no airline in the world can afford to ignore its costs. But in India, this low-cost concept has translated into more of low fare price war. "Paramount model believes in cost-effective service excellence" To provide the best value for money at an affordable fare, resulting in total customer delight. I have said it many times the very low fare concept is a fallacy in India. All of us have the same costs relating to pilots, engineers, fuel, ground handling, airport charges and so on. Just because you are a no-frill airline, does not mean your costs are low and one is paying anything less. I feel the no-frill as a model is just not robust enough for a country like India and cannot sustain in the long run in its present form. I feel that discerning travellers all over the world, including India, prefer to travel comfortable paying a little more compared to LCCs. This is going to get

accentuated all the more in the future and with the result the low-cost model may not be able to continue a price war which seems to be their competitive edge today.

"Need of the hour is to cope with rising transportation"

Mr Jeetendra Mohan, Team Leader, Lufthansa German Airlines (Cargo Division) In current world trade scenario, the entire worlds focus is to capture the Indian upward economic movement for mutual commercial benefits. Along with the overall growth in the country, international trade is growing at a faster rate. Export growth in the year 2005-06 was 23 per cent over the previous year, which is an amazing rate to attract various players of the industry to join in. Civil aviation sector saw strong positive growth rates in 2004-05; passenger traffic increased by 21.8 per cent, exports and import cargo handled grew 18.3 per cent at international and domestic terminals. Private airlines now account for 61 per cent of domestic traffic. Indian government also makes moves to integrate with the worlds economy; cargo movement is assuming large proportions. Need of the hour is to be able to cope up with the rising transportation and total logistics demands. Lufthansa Cargo is one of the worlds leading cargo carriers and an independent logistics company in the Lufthansa Group. It holds 6.4 per cent of total worldwide market share as per IATA figures for 2005. Lufthansa Cargo posted an operating profit of 81.5 million euros in fiscal 2006. Revenues rose on the year-earlier level by 3.4 per cent to 2.845 billion euros. The cargo load factor also clearly improved by 2.7 per cent points to 67.7 per cent. Lufthansa Cargo in India moved 58,000 tons of freight from India and 49,000 tons into the country during 2006. It operates 24 freighters per week out of 5 metros and holds 14 per cent of total air cargo market share in India. 60 per cent of the total cargo uplifted out of India on Lufthansa is destined to Europe, out of which 62 per cent is only for Germany. The company sees outstanding prospects for growth in the offering on the Asian continent. India and China especially have emerged as attractive airfreight markets with annual growth rates of up to 10 per cent.

"Air cargo has started showing increased growths in the last year"
Ms Tulsi Mirchandaney, Senior Vice-President (Marketing and Projects), Blue Dart

In the new speed-driven world, competitive advantage resides in networks of geographically dispersed firms whose integrated supply chain moves via air, since air connectivity is that link which enables firms, regardless of location, to efficiently connect to distant markets and global supply chains in a speedy, reliable manner. For over 23 years, Blue Dart has sustained its leadership position in the domestic air express segment and has continued to be the largest one-stop shop for all distribution needs. Opportunity in India In India, we at present stand witness to a major economic boom. As more and more sophisticated, high-tech products are being manufactured, assembled, and distributed in the country, the need for integrated air express service is subsequently increasing. Air cargo has started showing increased growths in the last year in line with GDP growth, to which it has a direct correlation. Currently, the size of the domestic organised Indian express market is pegged at Rs 10.75 billion, according to A C Neilson Report and we estimate the market growth in double-digit figures following last years trends. India is still not a mature market. However, with encouraging GDP growths projected, current increase in manufacturing, development of various industries, and India emerging as an important sourcing hub, opportunities exist like never before. Challenges to overcome It is a fact that growth and challenges always go hand-in-hand, and the air express industry is no exception to this rule. While we have reason to be optimistic about the macroeconomic indicators like the encouraging GDP growths that augur well for our business, there are issues that we constantly need to address. For instance, fuel prices are a concern as they account for a significant part of our operating expenses. And even though we have a fuel surcharge mechanism in place, there is always a risk that prices would escalate beyond control. Any kind of political disturbance or disruption is also detrimental to our business. Another important factor that particularly needs consideration in India is infrastructure. Infrastructure related to cargo terminals, cold storage, automatic storage and retrieval systems, mechanised transportation of cargo, computerisation and automation, needs to be improved. In short, the much-talked airport modernisation across the country has to step up pace. The Road Ahead In spite of all these challenges, Indias air express industry presents exciting opportunities. What is required to exploit this opportunity is a strong commitment from private sector operators, coupled with determined efforts by the government and regulators to transform the sector. With rapid technology development and improvement of infrastructural facilities, India can play a significant role in the global logistics industry. Opportunities abound, and as we deliver business in the 21st century, we shall make our dream a reality by bringing people and markets together for a stronger and more prosperous India.

Indira Gandhi International Airport, New Delhi

The cargo terminal at Indira Gandhi International Airport, New Delhi, was established on May 1, 1986 for processing of import, export, transhipment cargo and unaccompanied baggage. The cargo terminal provides all range of services and facilities at par with any international airport. Spread in an area of 27 acres, it is a semi-mechanised terminal, having two elevating transfer vehicles (ETVs) with 3 level stacker positions (350 slots) for storage and retrieval of ready-built unit load device (ULD). Modern cargo handling equipment like cranes, forklifts, high mast stackers, power pallet trucks, etc. are used for handling cargo. A state-of-the-art centre like perishable cargo like flowers, fruits, vegetables and meat product was commissioned in 1998. Six wide-bodied aircraft can be parked simultaneously in an exclusive Cargo Apron at the airport. Monthwise Cargo Handled Import Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 8879 9466 8661 10432 9206 9618 9563 9318 10082 Corresponding Month Previous Year (in MTs) 7366 7926 7793 8370 9006 8700 9544 8326 9726 % Change over Previous year corsp. Month 20.54 19.43 11.14 24.64 2.22 10.55 0.20 11.91 3.66 Progressive Total

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8879 18345 27006 37438 46644 56262 65825 75143 85225

Export Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 16912 14665 12869 13318 12847 13382 12214 12167 12220 Corresponding Month Previous Year (in MTs) 14976 14699 13659 15309 15084 14568 15642 12262 13180 % Change over Previous year corsp. Month 12.93 -0.23 -5.78 -13.01 -14.83 -8.14 -21.92 -0.77 -7.28 Progressive Total 16912 31577 44446 57764 70611 83993 96207 108374 120594

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Source: Airports Authority of India

Chhatrapati Shivaji International Airport, Mumbai

The cargo terminal at Chhatrapati Shivaji International Airport, Mumbai, was established in 1977 for processing of import, export, transhipment cargo and unaccompanied baggage. Airports Authority of India (AAI) and Air India (AI) are the agencies managing the cargo handling operations on parallel-run basis on behalf of about 40 operating airlines besides an approved custodian of import/export cargo under Customs Act, 1962. The terminal is spread in an area of 1,08,684.11 sq. mtrs, of which a total area of 6,000 sq. mtrs has been allotted to Air India for handling of import/export cargo. A separate area of 6,334 sq. mtrs., called FACT building, is used by 11 airlines for unitisation of export cargo. A state-of-the-art centre for perishable cargo like flowers, fruits, vegetables and meat products has been commissioned in 2003. Five wide-bodied aircraft can be parked simultaneously in an exclusive Cargo Apron. Monthwise Cargo Handled Import Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 10221 11389 10638 11201 11310 11616 11388 11859 14049 Corresponding Month Previous Year (in MTs) 8966 9116 8891 8100 9726 10115 10806 9391 11633 % Change over Previous year corsp. Month 14.00 24.93 19.65 38.28 16.29 14.84 5.39 26.28 20.77 Progressive Total 10221 21610 32248 43449 54759 66375 77763 89622 103671

1 2 3 4 5 6 7 8 9

Export Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 16629 17187 15764 14616 14304 15400 14760 14708 15367 Corresponding Month Previous Year (in MTs) 15188 15209 14824 10083 12847 14388 16636 13083 14639 % Change over Previous year corsp. Month 9.49 13.01 6.34 44.96 11.34 7.03 -11.28 12.42 4.97 Progressive Total 16629 33816 49580 64196 78500 93900 108660 123368 138735

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Source: Airports Authority of India

Air Cargo Complex, Chennai Airport

The Cargo Terminal at Chennai Airport was established on February 1, 1978 for processing of import, export, transhipment cargo and unaccompanied baggage. The terminal is spread over an area of 51,877.5 sq. mtrs with modern cargo handling equipment like forklifts, high mast stackers, power hydraulic pallet trucks, etc. are used for handling cargo. A state-of-the-art centre for flowers, fruits and vegetables has been commissioned in 1999. Three wide-bodied aircraft can be parked simultaneously in an exclusive Cargo Apron. AAI, as a custodian appointed by Customs, handles import cargo of all the airlines. The export cargo is handled by AAI, AI and Indian. Monthwise Cargo Handled Import Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 6918 7705 7242 7989 7429 8534 8694 8089 9116 Corresponding Month Previous Year (in MTs) 5795 5770 5864 6626 6439 6541 6908 6307 7230 % Change over Previous year corsp. Month 19.38 33.54 23.50 20.57 15.38 30.47 25.85 28.25 26.09 Progressive Total 6918 14623 21865 29854 37283 45817 54511 62600 71716

1 2 3 4 5 6 7 8 9

Export Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 7515 7431 7908 8883 7929 8171 7328 8369 8142 Corresponding Month Previous Year (in MTs) 7136 6743 6930 8205 7611 7152 6912 6408 7518 % Change over Previous year corsp. Month 5.31 10.20 14.11 8.26 4.18 14.25 6.02 30.60 7.40 Progressive Total 7515 14946 22854 31737 39666 47837 55165 63534 71676 Source: Airports Authority of India

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Netaji Subhash Chandra Bose International Airport, Kolkata

The international air cargo terminal at Kolkata Airport was the first air cargo terminal in the country, which was commissioned on October 5, 1975. The international air cargo complex is located 1/2 km north of international terminal building with well-connected road infrastructure for smooth functioning of air cargo services. The total area of air cargo terminal is 9,993 sq. mtrs and its annual holding capacity, including transhipment, is 37,120 MT. There are two parking bays exclusively for freighter fleet, which can accommodate up to B-737 type of aircraft. AAI (IAD) has created this air cargo terminal with various facilities for processing air cargo in the terminal building. All airline agencies and other agencies, connected with the clearance and pre-shipment formalities, are inhoused in the air cargo complex. Kolkata International Air Cargo Terminal provides air cargo services to entire Eastern and Northern-Eastern region for transhipment cargo. In international freight transactions, it connects six regions in the world, which are enriched in global market South Asia, South-East Asian countries, Western countries, Middle East countries and Central Asia. Monthwise Cargo Handled Import Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 1211 1396 1262 1310 1536 1913 1146 1432 1610 Corresponding Month Previous Year (in MTs) 970 1013 1296 1118 937 984 907 1188 1164 % Change over Previous year corsp. Month 24.85 37.81 -2.62 17.17 63.93 94.41 26.35 20.54 38.32 Progressive Total 1211 2607 3869 5179 6715 8628 9774 11206 12816

1 2 3 4 5 6 7 8 9

Export Cargo Handled (Mts) S.No. Month /Year APR 2006 MAY 2006 JUN 2006 JUL 2006 AUG 2006 SEP 2006 OCT 2006 NOV 2006 DEC 2006 WT in MTs. 1372 1479 1340 1486 1615 1249 1750 1894 1662 Corresponding Month Previous Year (in MTs) 1403 1386 1337 1648 1805 1867 1820 1690 1786 % Change over Previous year corsp. Month -2.21 6.71 0.22 -9.83 -10.53 -33.10 -3.85 12.07 -6.94 Progressive Total 1372 2851 4191 5677 7292 8541 10291 12185 13847

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Source: Airports Authority of India