SECTION-1 INTRODUCTION

Transport is a major driver of economy. The linkage between civil aviation sector and economic activity and its catalytic impact on general development is now well recognized. The ICAO estimated that $100 spent on air transport produce benefits worth $325 for the economy and 100 additional jobs in air transport result in 610 new economy wide jobs. The ICAO study attributes over 4.5% of global GDP to the air transport component of civil aviation. An efficient aviation sector is essential to support tourism, an industry with immense employment opportunity. During the last one decade the civil aviation sector has grown at a phenomenal pace and India has emerged as the 9th largest civil aviation market in the world. To illustrate this, Indian aviation currently has: air services available to/from 82 airports (only 50 in

Scheduled

early 2000). Enhanced national and international connectivity 72 foreign

airlines are operating to/from various destinations. Bilateral with 104 countries. 1356 International flights utilizing 3, 26,705 seats per week. 3 Indian carriers are operating 990 flights to 35 destinations in 25 countries. North East Connectivity: 87 flt/wk to 286 flt/wk in 5 years

(230% increase). Between 2000 and 2010 air operations Air India have expanded

by 160% in terms of domestic passenger volume India now ranks 4th

After

US, to

China reach has 1990, 100 As

and the 14 there

Japan. level

It of

is

expected to

to

grow million

at

rate

of by of 1990 now

9-10% 2020. cargo there risen has too

annually Today airlines. were to now

150

180

passengers exclusive In have the the

India In only

scheduled were only

airlines 2 in

operating in

airlines the

operation. which in 2000, in

aircrafts 39

operating non The

country

413.

against to 123.

scheduled total number

operators of

figure country

swollen

aircrafts

have shown a rapid rise from 225 in 2000 to 735 in 2010. Similar where 2000 from air the to 66 cargo This expansion number 82 million has is in to of 2010. 235 from has been witnessed airports has in airport infrastructure from has The 50 in

operational The million 3

increased capacity period. to 4.5

passenger during tons story

handling the in same 2002 it

increased growth tons in in even

been a

million growth

million have

2010. more They

remarkable but for the

and in due

could

been in

remarkable have

downturn dips political

global to upheavals

economy economic which

2008-09. recessions,

been

occasional disasters and

epidemics,

natural

reflect

the

extreme sensitivity of the sector to external global factors.

Aircraft Penetration

Population (millions) per aircraft

India China Indonesia Philippines Brazil South Africa Russia Japan Malaysia France Germany 0.31 0.25 0.24 0.18 0.14 0.11 0.63 0.96 0.89 1.14

2.89

In player remain markets, Chinas in

spite the very such domestic just

of low as

the

above

said arena.

growth, The by the Brazil the

India trips

continues per capita of and Indias

to in

be

small still

international (0.04) China is 5

India

even (0.15),

standards (0.25) of size

other Malaysia despite therefore,

emerging (0.54). a having

traffic 15% by

times The

population huge,

larger. strong

upside and

potential

remains

driven

economic

demographic

fundamentals.

India has 1 aircraft for every 2.89 million population which is Miniscule in comparison to 1.14 million in china, 0.96 of Indonesia, 0.89 in Philippines and 0.63 in Brazil. Out of the 32,000 helicopters in the world India has merely 210 while out of 15,750 freighter carriers globally, India has just 12. Indias civil aviation story has just begun.

1.1 VISION:
Enable people to have access to safe, secure, sustainable and affordable air services in world class civil aviation.

1.2 MISSION:
To create World Class infrastructural facilities To establish Regulatory Framework in consonance with

international standards. Connect presently unserved or underserved areas. Develop industry. Deploy sector. advanced technologies for the optimal growth of the skilled manpower according to the needs of the

1.3 OBJECTIVES:
Develop world in class focus aviation along with infrastructure efficient with facilities passenger for cargo

comfort

handling and Maintenance and Repair Operations (MRO). Operationalisation of Airports Economic Regulations Authority. Modernisation Services of and Air Air Traffic Control, Automation through at of GPS Air Aided Traffic Geo and

Navigation

Systems

Augmentation (GAGAN)

Project

aiming

efficiency

optimum utilisation of the air space. Creation of world Udaan class human resource (IGRUA), Research through National (NIAMAR) Indira Gandhi of

Rashtriya Aviation

Academy and

Institution and

Management

Helicopter

Training Academy Hadapsar, Pune. To establish oversight by ICAO an adequately operating safe, resourced above and and the effective international air State Safety set with

system for

standards transport

orderly

sustainable

acceptable level of safety (ALOS) for Scheduled, Non Scheduled, General Aviation and Helicopter Operations. Protection of passenger Rights in case of delays/cancellations

and overbooking. Enforcement of Security Regulations in terms of internationally

accepted standards. Better domestic in and international of connectivity. NACIL.

Enhancement

competitiveness

Rapid development of helicopter operations. Use of advanced Information Technologies for enhanced

efficiency and transparency.

1.4 ASPIRATION
Given in the the fact world that and us India is to is likely assume among to a the leading that aviation position, role in markets it is this

strengthen greater

incumbent upon arena.

international

The country has already been recognised as a role model

by FAA and shall strive to play a greater role in the governance of international bodies and their regional chapters To develop world. Develop an indigenous Indian Civil Aviation aircraft. Maintain Indias safety performance levels and achieve globally as one of the five largest aviation markets in the

best standards (as defined by HUL standards). Domestic Traffic to rise @ of 9-10% annually. Achieve 0.10 trip per capita as against the present 0.04. 1 aircraft per 1.5 million population as against 2.89 m at present. Include 500 more aircrafts in the Indian Fleet. Include 300 more helicopters Reach cargo movement of 7 million. The national carrier Air India to recapture its leadership role by

acquiring 28-30% market share in the sector. Establish Heliports in all the four Regions of the country. One Helipad at every 100 km of National Highways. Roof Top helipads on all new hospitals with more than 500

wards and 5 Star Hotels. Develop Delhi as an International Aviation Hub. Introduce Sea Plane operations in the island and coastal areas

for promotion of tourism and domestic transport.

SECTION 2 ASSESSMENT OF THE SITUATI 2.1 EXTERNAL FACTORS:

1. International prices of ATF, is the single most important factor

that affects the cost of air operations. 2. Marketing and pricing policies of Indian Oil Companies too

have a snowballing effect on costs. 3. Domestic taxation goes a long way to determine the operational

cost of airlines. 4. Global passenger and National as economies well as have financials a deep of impact airlines on and the other

traffic

aviation related private agencies. 5. Global SARS travelling. 6. Natural complete 2010. Disasters cessation like of volcanic flights for eruption a in Iceland period in caused May health and issues Bird like Flu epidemics. have In the past, affected scares like

seriously

international

prolonged

7.

As

environmental related role to in

factors

assume

global protection

importance, would

laws play

and an both

policies increasing

environment Civil Aviation

operations

affecting

airlines as well as airports. 8. Growth health of of alternative the modes of transport haul also affects are the affected overall by

sector.

Short

flights

development of good quality highways and fast speed trains.

9. Development of new technologies has a tremendous effect on Aviation specially Management, Meteorology, Ticketing etc. 10. The policies and performance of the of the sector like also tax of depends etc on upon tax

Government and

service

passengers duty on

flying

schools

imposition/exemption

customs

import of aircrafts and spares. 11. International effect Mumbai to Indian on and Aviation terrorist aviation are areas still of National operations on political in case situations of caused of wars a 11/9 have and severe and a great

terrorism. setback Christmas in oil

attack

26-11-2008 The effects Political

industry.

Bombing producing sector. 12.

continuing. the world

developments affect the

immediately

aviation

FDI Policy of the Government is a major determinant in the growth of the sector.

13. Land

Acquisition of India

and as

Rehabilitation well as State

Policies Governments

of

the radically

Government

affects the growth of infrastructure facilities specially airports. 14. Policies of the Ministry of Defence in sharing Air Space

and Aerodromes are a critical factor in Indian Aviation. 15. Promotion of India as a tourist destination will impact the international passenger traffic to India.

SECTION 2 OUTLINE OF THE STRATEGIC PLAN

3.1: CONNECTIVITY
In order to improve connectivity of people by air services, we intend to pursue six strategies: Connecting airport un-served and in under-served such areas using through the increase of

infrastructure

areas

appropriate

development model The ministry shall work with risks other and government agencies to identify sector

opportunities of reducing and address issues of

hurdles for the aviation duties and other

taxation,

economic

constraints that may impact the economic health of the sector. Helicopters which provide immense flexibility of operations and

can also be deployed quickly for strategic requirements and to deal with emergency situations Last mail connectivity - by creating a mechanism to integrate the larger airports with smaller airports in the region Review the policy framework for regional airlines Develop an approach towards the growth of general aviation in the country: A study shall be conducted through experts to develop a vision and roadmap for the vibrant growth of general aviation in the country, putting it at par with benchmark nations

3.1.1 Improved airport infrastructure

India would ensure better connectivity for hitherto un-served and underserved areas of the country specially the North-Eastern regions of the country, Jammu and Kashmir and the Islands of Lakshdweep, Andaman and Nicobar. For this to Airports ATRs and and Airstrips smaller which provide be landing developed

facilities

aircrafts

would

across these regions. The airport at Agatti would be upgraded. Seaplanes would be introduced in the islands and coastal areas to improve inter-island connectivity. The airports in NE would be resuscitated and upgraded to facilitate greater connectivity. States pattern passenger Mechanisms SOPs lower principle Cost of of civil and would of load be encouraged and which to introduce subsidies to on the

Manipur factor

Madhya would

Pradesh

improve on these

make

operations

routes commercially viable. would NSOPs be developed between major so can factor the for seamless airports that be in the the and hub actually full dovetailing centres and of of spoke realised. development develop predatory/

passengerload/infrastructure of travel connectivity being on a critical India,

aviation regulatory

Government to

would

suitable

mechanisms

prevent

excessive charging and oligopolistic practices. A balance would be struck between the interests of the travelers and commercial viability of Airline Operators.

3.1.2 Helicopter Operations

Helicopters helicopters infrastructure it is but to have fly for natural a in tremendous varied wing future in India. and can at an also Given due to only the the ability fact of that

environments aircrafts to grow

fixed for

expand

incrementally, pace. At

helicopters

unprecedented

present, India has only 210 helicopters in operation, which is minuscule in comparison to the international figure of 15,750. In

order to achieve this objective the Government shall:Create helicopter regions Kolkata in in the right infrastructure Heliports and shall in for be North, the set rapid up Mumbai in in in the growth the the South of four West, in

operations. the the

country East

Delhi

Chennai/Bangaluru

the first phase. These heliports shall be developed both in the public, private and joint sector. The responsibility shall primarily this Hans rest critical Helicopters of with function Ltd. the can and Policy developing Airports also also shall be by be Authority performed the private of by heliports India. the sector. modified

However, Pawan The

Greenfield

Airports

suitably

wherever necessary to adapt to helicopter operations needs.

States

would

be subsidy

encouraged schemes

to like

develop the

helipads Infrastructure

and

heliports

through

Development

Scheme of Tourism Department. The Government corridors the to shall and periodically update Air Space them review the to shall need for

helicopter needs in a of way

according

changing be done

industry. enable

Management of

optimal

growth

helicopters

along-with

fixed wings. Tourism drivers Medical through NHAI. 10 of and Medical evacuation growth would in be Disaster are India in going the by to years the be to major come.

helicopter

Evacuation the

triggered

Government and

National

Management

Agency

Since be

medical an be the

evacuation expensive encouraged cost Servants of

for

private

people medical

still insurance

continues

to

proposition to such CGHS

companies packages to of

would include

formulate evacuation. would

appropriate In act as

the a

case

Government vehicle. Coordinate and In order

facilitating

with prestigious to wing

line

Ministries government growth helicopters of

to

develop and

helipads private operations developed in

in

major hospitals. India in a the

facilitate for

helicopter shall be

separate

DGCA and AAI.

The Regulatory regime for helicopters would be continuously

upgraded to enable blossoming of the sector.

11

2.2: AVIATION INFRASTRUCTURE .1 AIRPORTS

Development of Airports would be guided by the following principles District should seating - 2B. Tourist/pilgrimage centres should have the facility to cater for aircraft having seating capacity 30 to 80 seats, Aerodrome reference code - 3C. level have capacity airport the of with population to seats, cater less for than aircraft reference 2 lacs having code

facility 30

Aerodrome

State Capital Airport should have the facility to cater for aircraft having seating capacity passengers, Aerodrome reference code - 4C. 80 to 200

Commercial centres or towns should have the facility to cater for aircraft having seating capacity 200 to 250 passengers, Aerodrome reference code - 4D. Non-metro international airports should have the facility to cater for aircraft having seating capacity 250 & above, Aerodrome reference code - 4E.

12

Airports in the middle of urban areas

Some the airports middle of land like Kota and Rajkot There for will are is located no right next to for AAI to from or in

urban in

townships. their vicinity It

possibility up-gradation prudent for

acquire any to State the

additional worthwhile offer

their be

aviation airports for another their

activities. which further

those

have use

useful and in etc, with obtain

land land of

parcels away barter

Government city deal. to be for

Greenfield to out Aircraft in

airport, Rules

form as

exchange may have and

Amendments worked

necessary State

consultation

Government

Law Ministry.

City side development

In the first phase, 10 airports will be taken up for City Side Development. The City Side Development process has already been initiated for which RFQ/ RFP/ Model Concession Agreements are being finalized. The process will involve development

either through PPP or by leasing for a period of 30 years extendable by another 30 years. City Side Development at Chennai, Kolkata, Hyderabad and Ahmadabad shall also be undertaken during the period.

13

3.2.2 AIR NAVIGATION SERVICES :

Guiding Principles - The Air Navigation Services shall be guided by the following principles: Enhanced safety Increased system capacity Optimized use of airport capacity Reduced delays Reduced flight operating costs Reduced fuel consumption and emissions More efficient use of airspace; more flexibility; reduced

separations More dynamic flight planning; better accommodation of optimum

flight profiles Reduced controller workload/increased productivity The develop industry operational Gate-to-Gate an and primary ATM objective system of that the to Air ensure airspace achieve of cost airlines Traffic Management safety the to would the be to

optimum users

aviation of

provide

desired operations Safe,

level

efficiency operational

effective to

through Efficient

strategy

ensure

and cost effective operations, minimise delays and enhance capacity. The strategy would consist of the following components -

Increased utilisation of existing capacity traffic Flexible use of Airspace for ensuring smooth flow of

without

undue

restrictions:

Historically,

airspace

management has been considered a rigid subject - with defined spaces for different players. However, the introduction of flexible air space management system allows us to work along a continuum. This helps reduce flight times, which results in fuel savings, improved plane utilisation, passenger comfort and reduced emissions

14

3.2.4 MAINTENANCE AND REPAIR ORGANISATION (MRO)

An MRO is a critical element of aviation infrastructure. Currently, airlines in the country are being required to send their crafts overseas for several maintenance activities. This leads to loss of fleet time and potentially higher costs. In order to aid the development of the sector,it is highly desirable that aMRO be created within the country. This will also strengthen the case of India as a global aviation hub, since an MRO in the country could also be used by airlines in several other countries. In the next 5 years, we are targeting the creation of one such world-class MRO in India - which has much of the required infrastructure for such a facility. Prior to establishing this facility, we shall be looking to conduct an extensive business and technical study to establish the commercial viability, operating model and scope of work for the facility. At this stage, we envisage that the key ssuccess .factors for this enterprise will be: Plan with the global market in mind: The MRO business is

global in nature and we should look to capture a share of that market. Currently, Indian planes go to other countries for services; This will also help build scale for the

we aim to reverse that trend. project by enhancing the user base Ensuring a world-class

facility :

This

is

critical

to

create It

acceptance among the airlines and build the volumes required.

may, therefore, be desirable to bring in a technical partner for the venture.

Ensure price competitiveness: Airlines in the country must also see a direct economic benefit from shifting to a domestic MRO. This is critical to enabling growth for the sector.

Develop HR capabilities as require

15

SAFETY AND SECURITY

3.3.1 SAFETY: There are four major thrust areas identified to improve the safety levels within the sector. These are outlined below: 1. Establishment of a Civil Aviation Authority a. The prevailing regulatory regime would be transformed through establishment of a

comprehensive civil aviation authority. b. An would independent be agency for in aviation consonance related with accidents ICAO

established

recommendations. 2. Creation of a State Safety Programme (SSP) along with

a corresponding Safety Management System (SMS) a. Employing Practices, recommended as ICAO standards and Recommended standards ensure and the

minimum practices,

international DGCA will

highest level of safety in the Indian aviation system b. India and an will develop integrated a set State of Safety Programme and (SSP) activities

regulations

aimed at enhancing aviation safety. c. Will aviation and and develop and embed that effective at a safety culture the safety that across all

industries value of

recognises aviation all times

importance management safety is

acknowledges

paramount. d. Develop policies principles. general that rule build making upon and specific safety operational management

16

e. Ensure that the DGCA financial and human resources are sufficient and the maintenance proper skills for of and that areas establishment, SSP a these and and and trained that for

implementation personnel discharging are in have

their in

responsibilities their functional of

personnel competent service

specialists safety

regulation

operators

providers. f. Ensure operations and that acceptable the and levels state are in of safety being for set, of aviation measured safety

within

achieved,

expressed

terms

performance indicators and targets. g. Ensure effectively that operators and and service the providers safety

establish

maintain

management system (SMS) in their operation. h. India assurance safety elements would audits would regulations of carry and a setup in in safety out internal an the relation internal DGCA to audit to ICAOs system. and audit eight The quality to quality aviation critical division assurance provide

division

oversight regular

internal audits

technical

assurance on corporate governance to the DGCA. i. DGCA would develop a comprehensive safety

information system to consolidate all the safety information received. The will be ability improved to to identify action, and analyse key safety the risks and data to

develop inspections,

mitigating audits

including for

targeted individual

surveillance

approved organizations. j. The Accident Incident Reporting System (AIRS) will

be further improved.

17

k. way

DGCA

would

provide of

training, safety

awareness

and

two to

communication a positive of

relevant culture and

information that efficient

support the

organizational an effective

fosters state

development

safety program. 3. A comprehensive Flight Duty Time Limitation program

would be adopted to reduce accident occurrences. 4. Strengthen (CASAC) to the Civil Aviation experts in Security the field Advisory to Council the

engage

advise

Government on critical issues of safety. a. The be Aviation brought actvities under the of the federating oversight States would of

effective

program

the National Regulator. 2. Will review the National Security Programme to respond

constantly to emerging security requirements. 3. Deploy threats manner advanced arising fully out taking imaging of technologies for reduction in a and of

unlawful into

interferences social

phased cultural

consideration

sensitivities. 4. Establish aviation a security highly force trained, for better dedicated security and of specialised airports and

other aviation properties/installations. 5. Achieve 100% screening of outbound cargo to eliminate

threats arising from sophisticated IEDs. 6. Install technologies at airports and cargo terminals for

detection of radiological substances. 7. Assume security. 8. Adopt global best practices for significant reduction and leadership in Asia Pacific Region in issues of

elimination of threats arising out of unlawful interferences. 18

3.4 REVITALISATION OF AIR INDIA

Being symbol a of the Indian it National Civil has the Carrier, Aviation. an new Air After India ruling of in has the historically skies for been nearly the half and has

century, with

suffered advent of

erosion players

market mid-90s.

share, image Today it

prestige

accumulated a loss of 11,000 crores and enjoys a market share of only 18%. It is in difficult financial ratio, massive scarcity manpower, health mounting working of debts, capital because operational requirements manpower delivery of and wide of losses, to adverse increasing fund over bodied large staffing aircrafts, debt interest interest of equity burden, payments, non-skilled National and

skilled delay in

international compulsions of operating loss making routes etc. Some of fleet. time. erstwhile Their The initiatives Air have and been taken in the and be recent past of like a after merger young some new

India

Indian are trying

Airlines to

infusion only

salutary Airlines skill The

effects is

likely to financial

visible itself

rediscover

through and five

initiatives, efficiencies. be to: (i)

up-gradation, strategy of

restructuring for the next

operational years would

the

Airlines

Wipe out the current losses amounting to more than Rs.11,000 crores and make it a genuinely profit making company both operationally and financially by 2014.

(ii)

Passenger

revenue

to

achieve

target

of

Rs.35,000 cr.

(iii)

Non-passenger

revenue

targeted

at

Rs.6,500

cr.

from

present level of Rs.1350 (iv) Target 12 million. (v) Development Europe to of International the reach hub of at Air Delhi India and by in future at to carry 35 million passengers from present level of

expand

non-stop/one-

stop connectivity 19

(vi) and

Integrate tap

itself the

efficiently International

and

fully

within through

Star efficient

Alliance code

market

sharing with leading international airliners. (vii) To reach on every an nook and 4 corner tier to of the domestic model places will 48-60 capacity will in market the with carry seats. upto cater by next fleet from Tier250 to

embarking 5 years.

ambitious will of

growth smaller

Tier-I capacity

cater 15-20 with

carrying slightly III will

seats.

Tier-II

bigger cater And

places to

ATR

carrying fleet aircrafts

places

with

bigger body

seaters.

finally

wide

international and select national destinations. (viii) Establishing market in Joint in Strategic the Ventures MRO, for Business Ground the whole Units handling or part (SBUs) and of to capture business, as

Cargo the

business,

the need arises. During next 5 years it is expected to increase its revenue from MRO business toRs 5000 cr from the present level of Rs.1000Cr. Revenue from Ground handling is likely to touch Rs1050 cr. from Rs.250 cr. at present. Revenue from Cargo operation shall be

increased to Rs.5000 crore from the present level of Rs.1000 crores. (ix) On operational front: (a) Air India strives to achieve On Time performance of

more than 93 % from the present level of 75%. (b) Fleet utilization is expected to reach International

standard of 11-12 hours from the present level of 99.5 hours. (c) Passenger load factors to be increased to 80% from

present level of 61 %

20

3.5.1 E-GOVERNANCE
1. The Ministry, website DGCA in and order BCAS to would develop a bilingual to

interactive

provide

maximum

information

users and in order to create a transparent work culture. 2. Since who most DGCA seek of also interacts types of with a large it number is of stake to holders provide

different these

services, An

proposed and

services would of the in end

online. be

ambitious on

comprehensive basis to This, to

e-Governance cover besides substantial would functional centres, holders. 3. All all

project aspects

implemented and holders time process

BOOT

regulatory stake transaction to with and end

licensing would and medical airlines

activities. also The with lead

facilitating savings provide integration flying

costs. and and

project cross

automation

DGCAs clubs,

examination other stake

institutes

airlines/operators

would

be

provided

an

online

interface

to

submit their time-tables and receive approvals. 4. Online pilots. of examination This would in India would also lead be to implemented reduction it at in to total par facilitate training aspiring period

pilots

and

bringing

with

international

courses. 5. An Automated to Airport reduce Entry discretion Pass and Issue System would be in

implemented the system.

introduce

transparency

21

SECTION 4 IMPLEMENTATION PLAN 5.1

S. No. 1

STRATEGIC INITIATIVES:
Theme Connectivity Strategic initiatives Create Heliports in 4 regions in the country Strengthen last-mile connectivity

between larger and smaller airports 2 Infrastructure creation Airports ANS and ATM Cargo MRO Helicopter operations Introduction of Flexi Operations in Air Navigation Management Implementation of a GPS based GeoPhysical Air Navigation System (GAGAN) Develop a Greenfield Airport in Mumbai City Side development in Airports of the country. Develop a world-class MRO facility in India 3 Safety and security Establish a new Civil Aviation Authority with comprehensive regulatory powers to replace the present DGCA. Develop a State Safety Programme (SSP) 10 selected

and Safety Management System (SMS) Restructuring of the Bureau of Civil Aviation Security. Establishment of a dedicated Aviation Security Force. 4 Efficiency improvement E-governance Technology upgradation 22 Enhanced transparency by upgradation of EDI system in AAI Implementation of e-governance project

HR capacity development

Upgrade standards of aviation training; focus on improving quality of existing infrastructure

Revitalisation of Air India

Financial and operational restructuring of Air India.

5.3 LEARNING AGENDA 1. Civil Aviation to is a up dynamic with. It sector shall from which be the grows at a of pace the and

difficult

keep to

endeavour

Government

constantly

learn

International

Agencies

other States latest developments in the field of Infrastructure, Safety, Security and Passenger Facilitation.
2. This shall be achieved through regular interactions with

International Bodies and their Regional formations. 3. The Safety program would be constantly reviewed on basis of

Accident and Incident investigations. 4. Public They Complaints shall be The too viewed are an important as be a source tool of of feedback. and at

positively shall

learning reviewed

improvement.

complaints

periodically

senior levels to understand patterns for effective redressal. 5. All be National immediately and International and security lessons related learnt incidents therefrom would for

analysed

correction. 6. Expert study Bodies existing and systems Consultants for shall be extensively of used to and

identification

shortcomings

improvements.

7.

Audits

conducted

by

International

Bodies

shall

be

treated

as

learning tool for bringing about systemic changes. 8. Best adopted Practices after of other countries modifications 23 shall to be suit closely our studied and

necessary

socio-cultural

needs.

FUNDING
The Civil Aviation Sector of India would require huge investm years to come. It is anticipated that by 2020 a total of $80 billion would be required to fund the fleet requirements of the commercial airlines. Similarly, the airport system would require an investment of $30 billion. In addition up-gradation of Air Navigation Systems would require another 600 crores. The Air India would require huge amounts of money to turn around. Fortunately, Private largely only the Ministry to on has forged these capital Air powerful funding for models needs. its of PPP The and Sector It Full is is

participation dependent the Airport support.

fulfill private

funding

activities. which on

Sector The

and Public

Controller Sector

System too is

needs to side duly

Government commercial development

Airport

way

self-sustainability and adoption

with of

movement profitable

towards

city

financial

practices

regulated by AERA. The ambitious GAGAN Project however, due to its strategic importance Only the would be important areas like partly airports North funded and East by the that Government. caters to

strategically underserved

infrastructure would be

provided

budgetary

support. The transformation of DGCA into CAA too would provide self sustainability to the Regulatory system as well with powers of levying user charges. The equity base of Air India is being gradually expanded. However, this would be performance based to match improvements in the financial and operational performance of the National Carrier. It shall be incumbent for Air India to develop its own financially sustainable models to restore its health. Government budgetary support to the sector would generally be limited to funding of socially necessary activities, skill development of personnel and strategic functions. Annual budgets of all the entities under the Ministry shall largely conform to the priorities set 24

out in the Strategic Plan.

5.3 LEARNING AGENDA 1. Civil Aviation to is a up dynamic with. It sector shall from which be the grows at a of pace the and

difficult

keep to

endeavour

Government

constantly

learn

International

Agencies

other States latest developments in the field of Infrastructure, Safety, Security and Passenger Facilitation.
2. This shall be achieved through regular interactions with

International Bodies and their Regional formations. 3. The Safety program would be constantly reviewed on basis of

Accident and Incident investigations. 4. Public They Complaints shall be The too viewed are an important as be a source tool of of feedback. and at

positively shall

learning reviewed

improvement.

complaints

periodically

senior levels to understand patterns for effective redressal. 5. All be National immediately and International and security lessons related learnt incidents therefrom would for

analysed

correction. 6. Expert study Bodies existing and systems Consultants for shall be extensively of used to and

identification

shortcomings

improvements. 7. Audits conducted by International Bodies shall be treated as a

learning tool for bringing about systemic changes. 8. Best adopted needs. Practices after of other countries modifications shall to be suit closely our studied and

necessary

socio-cultural

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What Is Operations Strategy?

Operations strategy is the development of a long-term plan for using the major resources of the firm for a high degree of compatibility between these resources and the rms long-term corporate strategy. Operations strategy addresses very broad questions about how these major resources should be congured to achieve the desired corporate objectives.

Some of the major long-term issues addressed in operations strategy include

How large do we make our facilities?

What type of process (es) do we install to make the products or provide services?

What will our supply chain look like?

What will be the nature of our workforce?

How do we ensure quality?

Each of these issues is addressed in greater detail in subsequent chapters. In this chapter We want to take a macroscopic perspective to better understand how these issues are interrelated. Exhibit 2.1 shows an overall picture of the operations strategy process and its relationship to other strategic processes in the organization. The Operations Management Strategy Development Process

Today, many corporations, both large, global conglomerates such as General Electric and Small ones such as Mississauga, Ontario-based Cara consist of several stand-alone businesses that focus on different industries. The conglomerate may have a vision and a mission.

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