Indian aviation industry

Healthy Growth of Passenger Traffic

• Total passenger traffic stood at a 106.45 million in FY
2016*.
• Passenger traffic increased by 12.47 per cent in FY
2015.
• Growth in passenger traffic has been strong since the
new millennium, especially with rising incomes and low-
cost aviation passenger traffic expanded at a CAGR of
3.8 per cent over FY 2006–16*.

Introduction
India’s civil aviation industry is on a high-growth trajectory.
India aims to become the third-largest aviation market by
2020 and the largest by 2030.
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. India is the ninth-largest civil aviation market
in the world, with a market size of around US$ 16
billion.India is expected to become the third largest
aviation market by 2020#.
“The world is focused on Indian aviation – from
manufacturers, tourism boards, airlines and global
businesses to individual travellers, shippers and
businessmen. If we can find common purpose among all
stakeholders in Indian aviation, a bright future is at hand”
said Mr. Tony Tyler, Director General and CEO,
International Air Transport Association (IATA).
Market Size
In May 2016, domestic air passenger traffic rose 21.63 per
cent to 8.67 million from 7.13 million during the same
month of last year. Passenger traffic during FY 2015-16
increased at a rate of 21.3 per cent to 85.57 million from
70.54 million in the FY 2014-15.
In March 2016, total aircraft movements at all Indian
airports stood at 160,830, which was 14.9 per cent higher
than March 2015. International and domestic aircraft
movements increased 10.5 per cent and 16.0 per cent,
respectively, in March 2016.
Indian domestic air traffic is expected to cross 100 million
passengers by FY2017, compared to 81 million
passengers in 2015, as per Centre for Asia Pacific
Aviation (CAPA).
India is among the five fastest-growing aviation markets
globally with 275 million new passengers. The airlines
operating in India are projected to record a collective
operating profit of Rs 8,100 crore (US$ 1.29 billion) in
fiscal year 2016, according to Crisil Ltd.
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 December
2015 stood at US$ 612.53 million.
Key investments and developments in India’s aviation
industry include:
 Airbus SAS has signed an agreement with Karnataka-
based Aequs Aerospace, an aircraft component
maker, for the supply of over 100,000 titanium
machined parts for its A320 new engine option (NEO)
aircraft.
 Lockheed Martin Corporation plans to make India a
manufacturing base for its F-16V fighter jets, C-130J
Super Hercules military transport planes and
helicopters.
 Auto components maker Bharat Forge Ltd (BFL), the
flagship company of the US$ 3 billion Kalyani Group,
has formalised agreement with Rolls-Royce Plc,
under which BFL will supply critical and high integrity
forged and machined components for a range of aero
engines.
 Boeing, has outlined the company’s long term
commitment to investing in India in terms of funds as
well as skills, capabilities, infrastructure and
partnerships so as to help the aerospace sector build
 capacity and become one of the drivers of the Indian
economy.
 The Ministry of Civil Aviation has signed
Memorandum of Understanding (MoU) with Finland,
Kazakhstan, Kenya, Sweden, Norway, Denmark,
Oman and Ethiopia for increased co-operation
between the countries in terms of additional seats,
sharing of airlines codes, increased frequencies and
additional points of call, during the International Civil
Aviation Negotiations (ICAN),2015 held in Antalya,
Turkey.
 Tata Advanced Systems (TASL) has signed a joint
venture with American aircraft manufacturing major,
Boeing, to establish a centre of excellence for
manufacturing aerostructures for Apache helicopter
initially and collaborate on integrated systems
development opportunities in India in the long term.
 US-based aircraft manufacturer Boeing plans to
assemble one of its two helicopters namely, Chinook
(heavy-lift) or Apache (attack type) in India, thus
becoming yet another global company to invest in
India encouraged by the ‘Make in India’ campaign.
 Airbus, leading European aircraft manufacturer, plans
to invest US$ 40 million to set up a pilot and
maintenance training center in New Delhi, which will
be operational by the end of 2017.
 Airbus also expects India’s aviation industry to grow
at over 10 per cent annually in the next decade,
almost double the average growth rate of the global
aviation industry.
Government Initiatives
Government agencies project that around 500 brownfield
and greenfield airports would be required by 2020. The
private sector is being encouraged to become actively
involved in the construction of airports through different
Public Private Partnership models, with substantial state
support in terms of financing, concessional land allotment,
tax holidays and other incentives.
In the Union Budget 2016-17, the government introduced
various proposals for Maintenance, Repair and Overhaul
(MRO) operations for airplanes. These include customs
and excise duty exemption for tools and tool-kits used in
MRO works. The government has also scrapped the one-
year restriction for utilisation of duty free parts apart from
allowing import of unserviceable parts by MROs for
providing exchange. As per revised norms, the foreign
aircraft brought in to India for MRO work would now be
permitted to stay up to six months or as extended by
aviation regulator Directorate General of Civil Aviation
(DGCA). Such foreign aircraft would also be henceforth
permitted to carry passengers in the flights at the start and
end of its period of stay in India.
Some major initiatives undertaken by the government are:
 The Ministry of Civil Aviation has finalised and put
forward for approval to the Union Cabinet, the new
aviation policy, which includes proposals such as
allowing new airlines to fly abroad, introduction of
more regional flights and a new formula for granting
bilateral flying rights.
 The Indian Space Research Organisation (ISRO) has
signed a memorandum of understanding (MoU) with
the Airports Authority of India (AAI), aimed at
providing space technology for construction of
airports.
 Airports Authority of India (AAI) plans to develop city-
side infrastructure at 13 regional airports across India,
with help from private players for building of hotels,
carparks and other facilities, and thereby boost its
non-aeronautical revenues.
 Directorate General of Civil Aviation (DGCA), India's
aviation regulator, has signed an agreement with
United States Technical Development Agency
(USTDA) for India Aviation Safety Technical
Assistance Phase II, aimed at bringing in systemic
improvements in the area of operation, airworthiness
and licensing.
 The Government of India has given site clearance to
Delhi Mumbai Industrial Corridor and Development
Corporation (DMICDC) for setting up of a Greenfield
Airport for public use near Bhiwadi in Alwar district of
Rajasthan and has granted 'in-principle' approval to
13 other greenfield airport projects.
 The Airports Authority of India (AAI) plans to revive
and operationalise around 50 airports in India over the
next 10 years to improve regional and remote air
connectivity.
 Gujarat is expected to get a second international
airport at Dholera. The state government has formed
Dholera International Airport Co. Ltd. and is obtaining
approvals from the union government.
  The Directorate General of Civil Aviation (DGCA) has
given its approval to Air India’s maintenance, repair
and overhaul (MRO) unit.
 The Government of India has decided to award
airports in Kolkata, Chennai, Jaipur and Ahmedabad
on management contract. AAI has issued the
‘Request for Qualification’ document for these four
airports.
Road Ahead
India’s aviation industry is largely untapped with huge
growth opportunities, considering that air transport is still
expensive for majority of the country’s population, of which
nearly 40 per cent is the upwardly mobile middle class.
The industry stakeholders should engage and collaborate
with policy makers to implement efficient and rational
decisions that would boost India’s civil aviation industry.
With the right policies and relentless focus on quality, cost
and passenger interest, India would be well placed to
achieve its vision of becoming the third-largest aviation
market by 2020 and the largest by 2030.
Exchange Rate Used: INR 1 = US$ 0.0149 as on May 16,
2016
GMR Aviation - India's Leading Charter Operator
GMR Aviation operates and owns one of the youngest
fleets in the country. The fleet is rapidly growing with a
range of both fixed and rotary wing aircrafts to cater to
varying travel distances, passenger capacity and comfort
levels. You choose the destination and we will find a way
to fly you there.

GMR Aviation was formed in 2006 to offer aircraft charter

services and consultancy for business aviation. Apart from
owning and managing its own fleet, GMR Aviation also
manages aircrafts of other business groups.
GMR Aviation is managed by proven professionals drawn
from among the best in the aviation industry. Operations
managed by robust processes and systems ensure
highest levels of efficiency and safety. While great care is
taken in recruiting the best in class people resources,
equal importance is given to regular training and
competence development.

GMR Aviation is a subsidiary of the GMR Group, the

Bangalore headquartered global infrastructure major.
It has been our endeavor to provide a one stop shop for
charter solutions. Our aim is to cover the entire spectrum
of the charter services covering both fixed and rotary wing
aircrafts and to provide a variety of aircrafts to suit every
pocket, every demand, and every situation. Presently our
fleet consists of:

1. Falcon 2000 EX
2. Hawker 750
3. Bell 412 Helicopter

SPECIFICATIONS

Aircraft Falcon 2000-Lx

Registration VT-BRK
YOM 2008
Based Bangalore
Max Speed 0.84 Mach (480 Knots)
Cruise Speed 0.80 Mach (450 Knots)
Max: 47,000 ft
Altitude
Regular: 41,000 ft
SATCOM, Fax, Internet (Wi Fi),
On Board Phone, Airshow, In-Flight
Facilities Entertainment, Additional Cargo Hold
for Baggage
Pax 09
Bed 09 Seats Convertable to 04 Beds
Yes with Oven, Microwave, Coffee
Galley
Maker
Restroom Yes

Aircraft Hawker-750 Bell-412

Registration VT-RSR VT-MRV
YOM 2008 2010
Based New Delhi New Delhi
0.83 Mach (465
Max Speed 140 Knots
Knots)
0.80 Mach (450
Cruise Speed 125 Knots
Knots)
Max: 41,000 ft
Altitude 20,000 ft
Regular: 39,000 ft
Moving Map,
AIRCEL, Internet
Flight Display,
On Board (Wi Fi), Phone,
LCD Monitor,
Facilities Airshow, In-Flight
CD and DVD
Entertainment
player
Pax 08 08
Galley Yes Microwave Yes
Restroom Yes -
VIP twin
Configuration -
engine
GMR Hyderabad International Airport Limited
GMR Hyderabad International Airport Limited (GHIAL) is a
company promoted as a joint venture comprising the GMR
Group (63%) in partnership with Government of India (13%),
Government of Telangana (13%) and Malaysia Airports
Holdings Berhad (11%). The Company was incorporated to
build, design, finance, operate and maintain a world class
Greenfield airport at Shamshabad, Hyderabad. The project is
based on the Public Private Partnership model (PPP), which is
based on a Build, Own, Operate and Transfer (BOOT) basis.

The Rajiv Gandhi International Airport (RGIA) commenced

commercial operations from March 23, 2008,after it was
inaugurated on March 14, 2008. RGIA is the first Indian airport
to have the Airport Operations Control Centre, the nerve centre
for all coordination within the airport. RGIA is also the first
airport in the world to get the Leadership Energy and
Environment Design (LEED) ‘Silver’ rating for its eco-friendly
design.

For enhancing the quality of life in the communities living

around the RGIA, GMR Varalakshmi Foundation, the CSR wing
of the GMR Group has won the International Orbis Award,
TERI Corporate Award, FICCI Award for CSR, ASSOCHAM
CSR Award, PHD Chamber of Commerce Award and CIDC
Viswakarma Award.The Vision of Foundation is to make
sustainable impact on the human development of under-served
communities through initiatives in Education, Health and
Livelihoods.

The Rajiv Gandhi International Airport at Hyderabad is well set

to establish the city prominently on the global aviation map,
thereby contributing to the prosperity, growth and all round
economic development of the region.

Lying within two-hour flight distance from all major Indian

cities and four-hour flight distance from the Middle East and
South East Asia, the Rajiv Gandhi International Airport(RGIA)
is strategically located at the centre of India. It has great
potential to grow into one of the busiest air travel hubs in India,
and an important destination-cum-transit location that will
bridge the East and the West. The airport was commissioned in a
record time of 31 months, and has capacity to handle 12 million
passengers (mppa) and 150,000 tons of cargo every year in
Phase I. The Project has the flexibility to increase its capacity to
accommodate over 40 mppa and will be developed in a phased
manner.

The modular integrated Cargo facility is spread over 14,330

sq.mt, and has the capacity to handle 150000 MT per annum.
There is an exclusive apron adjoining it that can accommodate
Code-F aircrafts. The integrated domestic and International
terminals have 117,000 square metre floor space, 12 contact
boarding bridges, 30 remote stands, 142 Common User
Terminal Equipment (CUTE), 22 self-check-in kiosks (Common
User Self Service- CUSS) and 46 immigration counters. The
airport also incorporates modern IT systems like Flight
Information Display Screens, Baggage Handling System
(BHS),Airport Collaborative Decision Making (ACDM)and uses
Airport Operational Database (AODB) technology for the first
time in India. RGIA became the first airport in India to go live
on implementing the end-to-end E-boarding facility for domestic
passengers. The airport has world-class infrastructure and
facilities in line with the International Civil Aviation
Organization (ICAO) standards and practices to handle large
aircraft and International traffic.

GMR Hyderabad International Airport Limited (GHIAL) is

planning to develop India’s first Airport City (Aerotropolis)
spread across 1,000 acres in its vicinity. It will have a unique
concept of integrated ecosystem covering activity centers like
education, healthcare, leisure & entertainment, sports,
hospitality and offices. This high-end Airport City will focus on
sustainable development using Green Technologies and new
generation digital infrastructure along with quality physical
infrastructure. The Airport City will also house aero related
economic activities like logistics and Aero-SEZ. For this
purpose, GHIAL has developed India’s first of its kind MRO
facility. This can provide maintenance services for B737-NG
Series, A320 Series, ATR 42/72 Aircraft and Bombardier Q400
series.

GMR Aviation Academy (GMR AA), the Learning &

Development arm of GMR Group is the only one of its kind in
India to have been conferred with the “Regional Training Centre
of Excellence” (RTCE) stature by ICAO and as “Global
Training Hub” by the ACI. GMR Aviation Academy (GMR
AA), which came into being in 2009 with an objective of
providing professional support to the personnel working in
GMR Airports’. Over the years, it has emerged as a global
gateway for aviation learning in India, for not only GMR’s own
personnel but also for the people of its peers and allied agencies
in India and abroad.

The Academy is now established with a wide range of courses

and has also been training students for Airport Operations and
Fire Fighting services for aviation and hospitality industries.
RGIA has retained its global top 3 ranking for 7th year in a row
in Airport Council International (ACI) Airport Service Quality
(ASQ) survey for the year 2015 in the 5-15 million passengers
per annum category in ASQ by ACI. . RGIA won the National
Tourism Award under the Best Airport category, Five Star rating
and Sword of Honour by British Safety Council, STAT Times
Emerging Cargo Airport of the Year, Region - India. This is the
2nd time RGIA has won this Award, having won earlier in 2014.
It also won the Best Regional Airport in India and Central Asia
at the Skytrax World Airport Awards, HR Excellence Award
during the ACI Asia-Pacific Regional Assembly, Best
Landscape award for six times in a row, Golden Peacock
Environment Management Award and CII Energy Management
Award for building “Excellent Energy Efficient Unit”.
The Benefits and Drawbacks of Self-Service
Kiosks
Self Service checkouts are an added accessory in
supermarkets these days. In technological terms they are
one range of kiosks you can interact with. Many are
unsure as to whether these self-service devices are a
good or bad thing. It took a while for customers to accept
them and even now they are still getting used to them.
They do contain a number of benefits but also have a
number of issues and drawbacks.

Benefits
A key benefit of these self-service kiosks is that they are
good for your money. They limit the number of staff
needed. Usually one member of staff can help manage
four self-service machines, much more efficient that
serving one customer at a time on a single till.
They don’t take up much space; a typical cashier station is
equivalent to five self-service kiosks. Meaning a larger
number of customers can be served in a shorter amount of
time and is without mention a more efficient use of space.
It’s not only beneficial to supermarkets but also customers,
in particular customers who have only a few items; they
can process their purchases a lot quicker and don’t have
to face the annoyance of waiting in a long queue.
Majority of customers, often prefer to process their
shopping themselves, especially if it’s personal products.
Having control over paying for their shopping can help
make the process appear to be a lot quicker.
Customers sometimes just enjoy the actual experience of
scanning their own shopping and like to give it a go. Some
see it as a personal challenge, to try to do it as quickly as
possible without any errors or help from a member of staff.

Drawbacks
For some people, customer service and the human touch
is important. They prefer to go to a cashier rather than an
impersonal machine. Whereas others are fearful of
technology, and are often worried about using it as they
are unfamiliar with it, so tend to stay away from them.
Any regular user of self-service machines will be familiar
with the common phrase ‘Unexpected item in the bagging
area’ just the mention of this to a frequent user could
cause irritation. When a problem such as this occurs whilst
using the machine, you are then left with the challenge of
trying to obtain the attention of a member of staff. Most
staff working on the self-service machines often have their
hands full, sorting out errors and authorising the sales of
goods such as alcohol.

Convenience
The conveniences of self-service kiosks for many people
do outweigh their disadvantages. With an increase in
customer usage and continued development of these self-
service kiosks, it is more than likely that the customer
experience will improve. Those who are still uncertain
about these kiosks needn’t worry, as none of the top
supermarkets have released any plans to get rid of staff
tills completely. Overall it comes down to personal
preference.