Narendra ModiHon’ble Prime Minister

Ministry of Civil AviationGovernment of India

3 YEARS OF PATH - BREAKING

AND INCLUSIVE GROWTH IN AVIATION

May 2017

Udan

MAJOR ACHIEVEMENTS

Significant improvements in passenger convenience – Passenger friendly initiatives such as AirSewa, removal

of baggage stamping, etc., to provide a delightful air travel experience

National Civil Aviation Policy 2016 – 1st comprehensive policy to accelerate growth of an integrated aviation

ecosystem, India to be 3rd largest aviation market by 2022

Affordable Flying for all – Fall in average airfare by 18% in 2016 over 2015 making air travel affordable for

everyone with unprecedented capacity enhancement in aviation system

Robust Security Architecture – Ensuring fool-proof security without compromising on passenger convenience

through stringent security audits and institutionalised mechanisms

UDAN – World’s first Regional Connectivity Scheme to connect un-served & under-served airports and boost regional

tourism and economic growth; ensures affordable flying at ` 2,500 for an hour long flight

Ease of Doing Business – Reforms undertaken to simplify processes, attract investments and promote business

opportunities across aviation

Enhanced Skill Development – Clear focus to leverage India’s human capital potential and create job opportunities

in the growing aviation sector

Innovation in Technology – Conceptualization and development of cutting-edge products and processes across

aviation ecosystem to enhance efficiency

Air Sewa

CIVIL AVIATIONNATIONAL

POLICY 2016

CSI Airport, Mumbai

Withdrawal of 5/20 requirement; replaced with a scheme ensuring level playing field for domestic carriers flying international routes

Reshaping aviation ecosystem for affordable and convenient flying for everyone; increasing domestic ticketing to 30 Cr by 2022 and 50 Cr by 2027, international ticketing to 20 Cr and cargo volumes to 1 Cr tonne by 2027

Multiple provisions for MRO service providers: rationalizing customs duty, simplification of goods clearance procedure, zero-rated VAT, adequate land in all future airports & no airport royalty for 5 years

Higher non-aeronautical revenues through airport development and better utilisation of commercial opportunities of city side

Route Dispersal Guidelines (RDGs) rationalized and trading of Available Seat Kilometers (ASKMs) permitted

FLYING FOR ALLAFFORDABLE

Average airfare fell by 18% in 2016 over

average airfare in 2015, making air travel affordable for everyone

Indian scheduled airlines carried more than 10 Cr domestic passengers during FY17 against 6.1 Cr in FY14, recording growth of ~19%

Scheduled domestic flight movements during

2016 is 8.2 Lakh as against 7 Lakh

movements in FY14, 8.2% CAGR growth

Indian carriers operated 496 aircraft in March 2017 up from 395 in 2014, orders for purchasing 654 aircraft placed

Cargo carried registered over 10% growth to 29.8 Lakh MT in FY16 from

25.3 Lakh MT in FY14

CONVENIENCE

SIGNIFICANTIMPROVEMENTS INPASSENGER

AirSewa launched by the ministry to ensure

convenient and hassle-free air travel experience

Civil Aviation Requirements made more passenger friendly for air travel

by Divyaang Jan

Over the last 3 years, number of

passengers complaints per 10,000 pax fallen to 1.06, demonstrating 99.99% satisfaction level

Airlines made responsible for refunding tickets bought even through their agents, within 30 days

Enhanced compensation for passengers for cancellation and boarding denial; removal of additional charges for cancellation of ticket and name correction

UDAN:REGIONAL CONNECTIVITY SCHEME

Path breaking element of NCAP-2016, the scheme envisions enhancing regional connectivity through a market - based mechanism

Passenger fares capped at ` 2,500 for an hour long flight to enhance affordability and connectivity

31 currently served airports, 12 underserved airports and 27 unserved airports to connect 128 RCS routes

Revival of 50 airports through infrastructure upgradation of ~ ` 4,500 Cr in the next two years

13 lakh new airline UDAN seats added anually under first round of UDAN for a Viability Gap Funding (VGF) of ` 205 Cr

EASE OFDOING BUSINESS

100% FDI allowed in Domestic Scheduled Air Transport, Air Transport Services and Regional Air Transport and 100% FDI allowed under Automatic Route in Brownfield airport projects

Validity of initial NOC for Scheduled operators, Scheduled Commercial Operators and Non Scheduled Operators increased to 36 months

Route Dispersal Guidelines (RDGs) rationalized for domestic operators for connecting remote areas

Open Skies Air Services Agreement offered to 49 countries and 5 SAARC nations under National Civil Aviation Policy 2016

No prior Government approval required for Indian scheduled carriers to enter into code share agreements with foreign carriers

ROBUST SECURITYARCHITECTURE

India’s compliance rate of ICAO security requirements at 99.59% and Effective Implementation at 99.23%

Implementation of robust security architecture across all airports and effective supervision mechanism through regular security audits

Removal of baggage stamping as a result of constant review of passenger convenience and security requirement across major airports from Apr 1, 2017

1st country to draft a proposal of a No-Fly list of unruly passengers for air safety of passengers and crew

Anti–Hijacking Act enacted in 2016; Implementation of policy to facilitate transport/transfer of human organs at airports

ENHANCED SKILLDEVELOPMENT

800 Air Traffic Controllers (ATCs) recruited by Airports Authority of India (AAI) in the last 2 years; 400 more to be recruited in 2017 to comply with growing human capital requirements

1st executive aviation course launched by India’s first aviation university – Rajiv Gandhi National Aviation University – in February 2017

Comprehensive skill-gap study conducted by the Ministry to formulate a visionary Skill Development plan

Formation of Aerospace and Aviation Skill Sector Council (AASSC) to monitor growth of Skill Development; identified 38 critical job roles to align with National Skill Qualification Framework of which 27 already available for affiliation

Industry-collaborative initiatives taken to develop Apprenticeship Program for Aircraft Maintenance Engineers (AMEs)

INNOVATION IN

TECHNOLOGY

Launched GAGAN1: India’s 1st satellite based navigation system to improve accuracy of air navigation services

Introduced NOCAS 2.0 that streamlines online process of timely NOC for height clearances of buildings around airports

Commissioning of Category-III B Instrument Landing System (ILS)3 in Jaipur & Lucknow, assuring airlines all weather access to airports

Initiated eGCA platform offering online delivery of 162 licensing and regulatory processes of DGCA

Implemented e-office: Online file management

system across the Ministry to enhance transparency,

improve efficiency and reduce time lag

1GAGAN: GPS Aided Geo Augmented Navigation; 2NOCAS: No Objection Certificate Application System; 3CATB ILS: advanced navigation and landing equipment aiding an aircraft to land under dense foggy conditions, reduces delays, cancellations, and rerouting, prior to Jaipur and Lucknow, Delhi was the only CAT IIIB complaint airport

Major Facts

1Aviation Industry: One of the fastest growing industries in India with over 13.1 Cr total departures in

FY17, registering a 20% y-o-y growth

2Passenger Traffic: 3rd largest aviation market by domestic air passenger traffic which stood at over 10 Cr.

In FY17

3Airports: 75 airports opened in 75 years of Independence while 33 new airports have been started in just

1 year

4Airlines: Distance flown by Scheduled Operators rose to 17k Cr. Km (FY17) from 11.4k Cr. Km (FY14),

recording a 14.3% CAGR growth

5Fleet Strength: ~500 aircrafts of scheduled Indian carriers ferrying year around; orders placed for more

than 650 new aircrafts

1 as on 31st March 2016

Ministry of Civil AviationGovernment of India

6Cargo Traffic: Witnessing continuous expansion with total freight cargo at ~30 lakh MT1, recording a

10% growth from FY15

7NSOPs: Undergoing strong revival, domestic non-scheduled passengers grew to 14.1 lakh (FY16)

registering a 6% growth

8Commitment to greener airspace: Comprehensive regulatory policies and strategies adopted to reduce

aviation carbon footprints

9Diversified Human Capital Base: ~2 Lakh people are employed in various segments across aviation

industry with a possibility of significant expansion going forward

10Ensuring hassle free travel: Incorporated systematic approaches to redress passenger grievances, and

improve operational efficiencies across the system

Scheduled airlines:Passenger Kilometres performed (Cr km)

FY14

FY 17

17,008

Scheduled aircrafts in operation

395

4961

Total Passenger traffic :Domestic and International (Cr.)

11.6

15.9

Non-scheduled aircrafts in operation

361

4061

No. of aircraft hours flown (lakh hrs.)3

14.2

19.4

Cargo carried by Airlines3 (in lakh metric tonnes)

18.9

29.3

INDIAINDUSTRIES IN

FASTEST GROWINGONE OF THE

11,404

Source: DGCA; 1Provisional figures as of 31st March 2017; 2 31st March 2016;

3 of Scheduled operations of Indian airlines

FAVOURABLE DYNAMICS

India’s strong GDP growth 7.1% in 2017

Rising per capita income in India: Rs. 1.0 lakh (FY17) vs. Rs.0.6 lakh (FY10)

Travel & Tourism is a Rs. 9.4 lakh crore strong industry

Rs. 77k Crore investments made in the airport sector from FY12-17; private investments total Rs. 59k Crore

Strong policy support: NCAP

Seats (in Lakhs) for March 2017

The UAE constituted almost half of the total international seats from India, primarily led by migrant workers and business market in the Middle East Top 10 international routes comprise 77% of overall traffic

Business centers such as Mumbai, Delhi, Bangalore drive the passenger traffic domestically

TOP 10 INTERNATIONAL ROUTES TOP 10 DOMESTIC ROUTES

The UAE drives the international traffic from India while Mumbai to Delhi steers the domestic travel

TOP INTERNATIONAL ANDDOMESTIC ROUTES

Seats (in million) for quarter ending Dec 2016

0 1 2 3

Hong Kong

Sri Lanka

Malaysia

UK

Oman

Qatar

Thailand

Saudi Arabia

Singapore

UAE

0 2 4 6 8

DEL-GOA

MUM-MAA

DEL-MAA

MUM-GOA

KOL-DEL

MUM-DEL

DEL-HYD

DEL-PUN

BLR-MUM

BLR-DEL

ti

ti

AROUND 16 CR PASSENGERSFLOWN IN FY17

n

HISTORICAL TREND OF INDIAN PASSENGER TRAFFIC

2.3 2.7 2.9 3.2 3.5 3.8 4 4.3 4.6 55.53.6

4.4 44.5

5.46.1 5.8

6.1

7

8.5

10.4

Domestic Passengers

(Crore)

International

Passengers (Crore)

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

INDIA HASSOME OF THE

LARGEST AIRPORTSIN THE WORLD

DELHI

MUMBAI

BENGALURU

CHENNAI

KOLKATA

HYDERABAD

COCHIN

AHMEDABAD

PUNE

GOA

TRIVANDRUM

LUCKNOWJAIPURGUWAHATI

SRINAGAR

CALICUT

BHUBANESWAR

VISAKHAPATNAM

INDORE

COIMBATORE

MANGALORE

5.8

0.2

4.5

1.6

0.2

0.2

0.2

0.2

0.2

1.5

1.8

2.3

0.9

0.7

0.4

0.3

0.7

0.7

0.4 0.4

0.4

Passengers traffic handled (crore) (FY17)#

ACI World Rankings

2

2

2014

Airport

Ranking in

2015

Airport

Ranking in

25 31

35 47

153 155

156 169

112 130

133 135

KEY ACHIEVEMENTS

For the 1st time, Operation & Maintenance

contracts of Airport Terminal Buildings at

Jaipur & Ahmedabad to be awarded under

PPP route

701 airports connected under UDAN

Delhi and Mumbai airports combinedly handle

10.3 Crore passengers in FY17

Top 6 Airports* contributed 66% of total

Indian passenger traffic in FY17

Increased focus on airport city & aerotropolis

model to enhance non-aeronautical revenues

Source: AAI; # Footfalls accounted for passenger traffic; *6 airports are Mumbai, Delhi, Hyderabad,

Bengaluru,Chennai & Cochin; 131 currently served, 27 unserved, 12 under served;

2 Airports Council International (ACI) World Rank 2015

DOMESTIC MARKET

KEY INDUSTRY PLAYERS

72

74

76

78

80

82

84

86

88

90

79.3

82

83.3

84.9

82.4

88.5

83.9

80.4

78.7

87.4

85.4 85.2

Air India Go Air Jet Airways Vistara Spice Jet Indigo

On- Time Performance (OTP) at 4 metro airports1

2016 2017

ti%

AIRLINES SCALINGNEW HEIGHTS

Source: DGCA; 14 metro airports include Bengaluru, Delhi, Hyderabad, Mumbai

Mar-17 Apr-17

0

20

40

60

80

100

Passenger Load Factors (PLF) of various Scheduled Domestic

Airlines

74.680.2

64.8 66.7

76.0 74.6

82.2 83.687.890.1

81.686.9

84.8 84.7

91.4 93.4

79.283.3 79.8 82.8

%

78.774.6

*Average Seat Capacity= Total ASK flown/ Total Aircraft Km. Flown.; * FY17 provisional figures

No

. o

f A

ircr

aft

s

FLEET STRENGTH

381378

(-0.8%)383

(1.3%)

448(9.5%)

496(10.7%)

355(4.4%)

378(6.5%)

395(4.5%)

409(3.5%)

340(-11.2%)

0

100

200

300

400

500

600

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

( ) - % Growth

0

2

4

6

8

10

12

14

16

18

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

AIRCRAFT UTILISATION

11.4

12.1(6.1%)

12.5(3.3%)

13.5(8%)

13.1(-10.3%)

14.3(9.2%)

15(4.9%)

16.9(12.7%)

14.6(8.1%)

Air

craft

Ho

urs

flo

wn

(Lakh

hrs

.)

( ) - % Growth

FERRYING YEAR ROUND

INDIAN SKIES HAVE ~500 AIRCRAFTS

Over 8.1 lakh scheduled domestic aircraft

movements in FY17*, 16% growth over FY16

About 1.4 lakh scheduled international aircraft

movements of Indian airlines in FY17*, 9.7% growth

over FY16

654 new aircraft orders placed by Domestic carriers

Over 3,763 hours flown per aircraft, increase of 3%

from 3,668 in FY15

Source: DGCA; *Provisional FY17 data for Scheduled Operators

Freight Traffic carried by Scheduled Carriers

HISTORICAL TREND OF FREIGHT TRAFFIC

5.7 5.5

6.9

8.58.1

7.8

8.49.9

10.5 11.211.5 11.5

12.7

15.0 14.714.1

14.4 15.4

16.6

18.6

0

2

4

6

8

10

12

14

16

18

20

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Domestic International

Fre

ight

Car

go (

in L

akh M

etr

ic T

onnes)

EXPANSION

CARGO TRAFFIC WITNESSING

Regional Connectivity Scheme to boost air cargo growth, regulations to ease business and development of multimodal cargo hubs

17 Common User Domestic Cargo Terminals (CUDCTs) in AAI airports; 15 developed during FY14 to FY17

More than 52% of Outbound Freight from India goes to Africa & Middle East

India gets Inbound Freight in equal proportion from all over the world, except the Americas

Advisory issued on service level standards leading to reduced dwell time

Reduction in free period from 72 hrs to 48 hrs for Import & Export cargo

Source: AAI, DGCA

NON-SCHEDULED OPERATORS

MAJOR NON-SCHEDULEDOPERATORS

4456

66

99122 127 134

147125 120 126 123

156

183

229

272

327

370

409 412

366 361

393406

0

50

100

150

200

250

300

350

400

450

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

No. of Operators No. of Aircrafts*

Market Share

Out of the total 54

non-scheduled

Helicopter operators,

top 3 operators

accounted for 80% of

the total number of

flights operated in FY16

Pawan Hans43.7%

Global Vectra27.1 %

Heligo Charters9.1%

Others

20.1%

STRONG REVIVALNSOP UNDERGOING

Over 14.1 lakh domestic non-scheduled passengers in FY16, 6% growth over FY15

Over 3.3 lakh domestic NSOP departures in FY16, 5.6% growth over FY15

India’s 1st dedicated Heliport launched at Rohini in

Delhi in FY17

No prior ATC clearance required in airspace below 5,000 feet* for Helicopters and seaplanes

Source: DGCA;* In areas other than controlled airspace

AIRPORTS GOING GREEN

CochinInternational Airport

JaipurAirport

Kolkata Airport

Delhi

Airport

Mumbai

Airport

Bengaluru

Airport

Vadodara HarniAirport

TirupatiAirport

ChandigarhAirport

Hyderabad

Airport

Daily generational capacity through Solar Power making it absolutely power neutral airport

Certification for green buildings, rooftop solar power generation, sewage treatment plants, rain water harvesting facilities

Commissioned construction of large solar power plants to save on total expenditure by almost one – third and reduced carbon footprints

Incorporated advance advanced security systems, energy-saving cooling mechanism, rainwater harvesting set-up & super sensitive fire safety alarm

INDIA’S COMMITMENTTO GREENER AIRSPACE

World’s 1st fully operational solar powered airport at Kochi

AAI was conferred 2 prestigious SKOCH BSE Award for Environmental Protection (Green Technology) for Chandigarh Airport Project in FY17

Solar PV Policy: Government targets 146 MW solar energy across all airports;12.65 MW generated by AAI till March 2017

Energy audits and Water audits being conducted in AAI and other agencies under the Ministry

National Excellence Award* for AAI for use and promotion of solar energy by Ministry of New and Renewable Energy (MNRE) in FY17

Source: AAI Airports India Business Magazine April June 2017, *under PSU category, Categories: Two Hundred Projects of India & Top Thirty Projects of India

Certification for green buildings, rooftop solar power generation, sewage treatment plants, rain water harvesting facilities

Commissioned construction of large solar power plants to save on total expenditure by almost one – third and reduced carbon footprints

Incorporated advance advanced security systems, energy-saving cooling mechanism, rainwater harvesting set-up & super sensitive fire safety alarm

HUMAN CAPITAL BASE

Number of employees (in ‘000)

2015

Total Employees across Aviation Sector : ~2 Lakh Major Employment Segments

Ground Handling

35

Cargo

71

Airports (including

ANS and CNS)

33

Airlines

55

MRO

1

No. of personnel (in '000)

2015

Job RolesNo. of personnel

(in ‘000)2015

Terminal and Airside

Ground Handling 28

Airside Management 14

Flight and Cabin Crew 11

MRO(Airlines) 11

CNS & ATC 7

Pilots and Co pilots 5

Aircraft Maintenance

Engineers0.5

DEVELOPING HUMANRESOURCE POOL

Source: Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation

Sector, 2016 ; 1 DGCA Provisional figures

5571 Commercial Pilot Licenses issued in FY17

4601 Airline Transport Pilot Licenses issued in FY17

On 26th Feb’17, 1st all-women flight operated around-the-globe by Air India

Setting up of Rajiv Gandhi National Aviation University to offer graduate and higher level degree courses in aviation

India has 51 DGCA approved AME training institutes & 29 DGCA approved flying training organizations

f

Air SewaAir SewaAir SewaAir Sewa

Launch of AirSewa, an integrated portal through web (airsewa.gov.in) and a mobile app for both android and iOS platforms

1st time brought together all stakeholders of aviation sector on one platform

Single-platform mechanism for customer grievance redressal, integrated back-office operations, flight status/schedule information, airport Information & FAQs

Passengers can easily track complaint status of grievances, provide feedback & rate overall experience & satisfaction level

AirSewa

Project DISHA

Largest airport transformation efforts taken by AAI in 10 airports

10 airports are Chennai, Kolkata, Lucknow, Varanasi, Coimbatore, Bhubaneshwar, Goa, Trivandrum, Pune, and Guwahati; constitute almost 60%3 of total AAI traffic

DISHA envisions enhancing non aeronautical revenue through fixture of basic airport facilities and systematic capacity building in airport infrastructure through best in class business processes

Implementation of DISHA has led to operational efficiency, improving customer service and travel experience in these airports

ENSURING HASSLEFREE TRAVEL

* From 26 Nov 2016 to 16 May 2017; 1 DISHA – Driving Improvements in Service and Hospitality at

Airports; 2 Queuing time in entry, check in, and security; 3As per 2015-16 passangers traffic

Approval of e-boarding facility for domestic fliers to reduce waiting time for baggage check-in and security clearance

Implementation of DISHA1 by AAI has led to almost 25-50% reduction in queuing time2 in 10 of its airports, added additional passenger traffic in these airports, improving overall passenger travel experience

91.4% of all grievances redressed till date* through AirSewa platform - 95% Airport-related issues, 94% Immigration, 93% Security and 92% Airline-related issues resolved

Major FactsRegion-wise

1Northern Region: Recorded a CAGR of 20% in passenger traffic, 16% in Air Traffic Movements, and 11%

in Freight traffic in the two years

2Western Region: Recorded a CAGR of 15% in passenger traffic, 9% in Air Traffic Movements, and 7% in

Freight traffic in the two years

Srinagar Airport Vadodara Airport

Ministry of Civil AviationGovernment of India

3

4

Southern Region: Recorded a CAGR of 18% in passenger traffic, 14% in Air Traffic Movements, and 7%

in Freight traffic in the two years

Eastern and North Eastern Region: Recorded a CAGR of 23% in passenger traffic, 13% in Air Traffic

Movements, and 9% in Freight traffic in the two years

Hyderabad Airport Kolkata Airport

NORTHERN REGION

UDAN scheme launched from Shimla to Delhi route in April 2017

Inauguration of New terminal buildings at Bikaner, Chandigarh, and Khajuraho

Provision of CAT IIIB Lighting System for Taxi guidelines and apron parking bays in Jaipur and Lucknow

Common User Domestic Cargo Terminals (CUDCT) operationalized at Lucknow and Srinagar

New Civil Air terminal inaugurated at Bathinda; initiated development of airport at Kishangarh

1includes only Khajuraho and Gwalior

WESTERN REGION

Source: AAI; 1 Includes only Jabalpur, Indore, Bhopal, Panna, Satna, and Khandwa

One of the first operational routes under UDAN flagged off between Nanded and Hyderabad in Apr 2017

Inauguration of New Terminal buildings at Vadodara and Goa

Foundation stone laid for setting up of greenfield airport at Mopa in Goa and in -principle approval granted for setting up of greenfield airports Dholera (Gujrat)

Tendering process for award of Navi Mumbai International Airport completed

Common User Domestic Cargo Terminal (CUDCT) facility operationalised at Goa, Ahmedabad, Aurangabad, and Indore

SOUTHERN REGION

1 Coimbatore CUDCT operational before 2014

UDAN scheme launched off from Kadapa – Hyderabad route in April 2017

Common User Domestic Cargo Terminals(CUDCTs) operationalised at Madurai, Mangaluru, Vishakapatnam and Chennai

In -principle approval granted for setting up of Greenfield airports at : Dagadarthi (Andhra Pradesh); Orvakal (Andhra Pradesh); Bhogapuram (Andhra Pradesh)

Sites cleared for setting up New Greenfield airport at: - Kothagudem (Telangana), process already initiated site being cleared

New terminal buildings inaugurated at Tirupati, Kadapa, Vijayawada, and Kochi

EASTERN AND NORTHEASTERN REGION

Construction of 3 new Hangars in Guwahati airport

Construction of new Integrated office Complex – AAI & BCAS office – at Bhubaneshwar, Orissa

Common User Domestic Cargo Terminal (CUDCTs) operationalised at Kolkata, Bagdogra, Raipur, Bhubaneshwar and Ranchi

Strengthening and extension of existing Runway at Tezu airport, Arunachal Pradesh

Ministry of Civil Aviation

Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi - 110003 Website: http://www.civilaviation.gov.in | Tel No.: (011) 24610358, 24610350, 24626001

Ministry of Civil AviationGovernment of India