INTRODUCTION

The Airports Authority of India (AAI) formed by the merger of IAAI and NAA
through Airports Authority Act (No.55 of 1994), came into existence on 1st April
1995. AAI manages five international airports, 87 domestic airports and 28 civil
enclaves.

MISSION

Progress through excellence and customer satisfaction with world class airports and
air traffic services fostering economic development.

ORGANISATION

Corporate Office : Rajiv Gandhi Bhavan,

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 Safdarjung Airport,
New Delhi - 110 003 (INDIA)
Tel : +91 11 24632950
Fax : +91 11 24632990 (Chairman's Office)
E-mail : [email protected]

The Board

The composition of the Board of AAI as on 30.9.1999 consisted of a Chairman, the

DGCA as the Ex-officio member, four whole time members and five part-time
members.

AAI Management (As on 30.5.2010)

Main Functions

The main functions of AAI are:-

o To control and manage the entire Indian airspace (excluding the

special user airspace) extending beyond the territorial limits of the
country, as accepted by ICAO.

o Provisioning of Communication and Navigational aids viz. ILS,

DVOR, DME, Radar, etc.

o To Design, Construct, Operate and Maintain International Airports,

Domestic Airports, and Civil Enclaves at Defence Airports.

o Development and Management of International Cargo Terminals.

o Provisioning of Passenger Facilitation and Information System.

o Expansion and Strengthening of Operational areas viz. Runways,

Apron, Taxiways, etc.

o Provisioning of Visual Aids.

HUMAN RESOURCE IN DIVERSE AREAS OF EXPERTISE

AAI has a vast resource of trained manpower. The 22000 strong workforces include
expert manpower in particularly in the areas of:-

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 • Civil and Structural Engineers
• Electrical Engineers
• Architects
• Automobile and E&M Engineers

• Safety Service Managers

• Air Traffic Controllers

• Electronic Engineers
• Finance, Audit & Accounts Managers

• HRD / HRM Managers

• Legal

• Cartography

TRAINING FACILITIES

The in house training requirements of the AAI are catered fully by 4 training
institutes. The training institutes have also been catering to the training needs of
manpower from neighboring countries. The two of these training institutes are
approved `Course Development Centre’s under the Train air program of ICAO.

FOREIGN PROJECTS EXECUTED BY AAI

AAI undertakes assignments like airport feasibility studies, airport design project
implementation & project supervision, manpower training, Airport Management &
operation on turnkey basis, providing manpower for airport operation including air

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 traffic services, Ground Nav./Surveillance facilities etc. The AAI has undertaken
consultancy projects in Libya, Algeria, Yemen, Maldives, Nauru, Afghanistan.

The Airports Authority of India has not only undertaken projects abroad but have
also provided trained experts for manning air traffic control, operation and
maintenance of Radar and Nav. Aids to Afghanistan, Iraq, Libya, Male, Nauru,
Nepal, Nigeria, Zambia etc.

A number of Indian Aviation experts are engaged by ICAO Technical Assistance

Programs and other consultancy assignments to various ICAO participating
nations.

FLIGHT CALIBRATION BY AAI IN INDIA & ABROAD

AAI has its own Flight Calibration Unit (4 aircraft) for calibration of ground aids as
per the ICAO stipulations. Over the years the Flight Calibration Unit of the
Airports Authority has undertaken flight calibration jobs in Afghanistan,
Bangladesh, Bhutan, Cambodia, Laos, Maldives, Nepal, Sri Lanka.

AAI OFFERS EXPERTISE IN THE FIELD OF AIRPORT &

AVIATION RELATED SERVICES AS GIVEN BELOW

Airport Feasibility Studies:

o Topography Surveys, Cartography and soil investigation

o Airport Obstruction Clearance Surveys
o Air Traffic Forecasts & Normative Surveys.

Airport Commercial Viability audit Services

Airport Master Planning.

DESIGN & CONSTRUCTION PROJECTS OF:-

a. Air Passenger Terminals / Air Cargo Terminals

b. Airport Pavements, Airport Electrical Installations/Approach and Night

Landing Facilities

c .Remodeling, Modernization of Airports

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 d. Planning, Installation, Operation & Maintenance of:

Radars, Nav. Aids, Visual & Non-Visual Landing Aids

e. Airspace & Air Traffic Management, Air route Re-structuring:

o Development of SIDS, STARS, IAL Procedures, Obstruction Charts

o Planning & Design for Airport Fire Safety Services

f. Airport Management on turnkey basis.

g. Computerisation:

o Cargo Handling
o Airport Terminal Information System
o Integrated Passenger Information System
o Air Traffic Management and Airlines Billing
o Automatic Self Briefing systems

h. Training:

o Air Traffic Controllers

o Radar & Nav. Aids & Communication Equipment Engineers
o Airport Terminal Management
o Airport Air Side Management (Ground Flight Safety)
o Airport Fire Services

i. Flight caliberation of airport ground facilities:

o Commissioning & routine flight check of

RADAR System, VOR, DME, NDB, ILS, VASI, PAPI etc.

INDIAN AIRPORTS
EXISTING POSITION

1. There are 449 airports/airstrips in the country. Among these, the AAI
owns and manages 5 international airports, 87 domestic airports and 28 civil
enclaves at Defence airfields and provides air traffic services over the entire Indian
airspace and adjoining oceanic areas.

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 2. In 2008-09, these 120 airports/civil enclaves handled 4.20 lakh aircraft
movements involving 24.17 million domestic and 12.83 million international
passengers and 221 thousand metric tones of domestic cargo and 468 thousand
metric tones of international cargo. 51 percent of traffic was handled at the
international airports at Mumbai and Delhi. Presently various airlines are operating
only through 61 airports. The remaining is lying unutilized at best handling
occasional aircraft operations.

3 .The turnover of the Authority was Rs.1591.27 crores for the year ended
March, 2009 and under audit figure of the Post Tax Profits for the year ended is
Rs.208.41 crores as against Rs.196.14 crores for the year ended March, 2008.

Historically, air traffic at Indian airports has broadly followed a particular

distribution pattern, except that some airports have changed their inter-se position
vis-a-vis volume of traffic.

TOTAL TRAFFIC HANDLED IN APRIL 2009 VS APRIL 2008

2009-10 AT TOP 5 AIRPORTS

CATEGORY APRIL 2008 APRIL 2009 % CHANGE

International 22.20 21.45 3.5

Domestic 86.76 93.55 -7.3
Total 108.96 115.00 -5.2
General Aviation (in 16.71 15.13 10.4
‘000)
Passengers (in
million)
International 2.58 2.49 3.5
Domestic 6.41 7.57 -15.4
Total 8.99 10.06 -10.7
Freight (in ‘000
tonnes)
International 95.45 100.82 -5.3
Domestic 45.23 45.16 0.2
Total 140.68 145.98 -3.6

TOTAL PASSENGER TRENDS IN APRIL 2008 VS APRIL 2009

Airport Category April April %

2009 2008 Change
Twelve International 2.53 2.83 -10.7
Airports
Five JV Int’l Airports 5.24 6.01 -12.8
Eight Custom 0.51 0.50 2.4

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 Airports
Twenty One Domestic 0.59 0.60 -2.6
Airports
Others Domestic 0.12 0.12 1.0
Airports
Total 8.99 10.06 -10.7

SHARES OF CARGO TRAFFIC DURING

2008-09 AT TOP 45 AIRPORTS:

Airport Category April April %

2009 2008 Change
Twelve International 2.53 2.83 -10.7
Airports
Five JV Int’l Airports 5.24 6.01 -12.8
Eight Custom 0.51 0.50 2.4
Airports
Twenty One Domestic 0.59 0.60 -2.6
Airports
Others Domestic 0.12 0.12 1.0
Airports
Total 8.99 10.06 -10.7
THE AIRLINE SECTOR OF OUR CCOUNTRY:

Last decade saw the Indian Airline industry grow at a breakneck speed. The
industry experienced a drastic increase in number of passengers, driven by
privatization of aviation industry and introduction of low cost carriers like Deccan
Airlines, Go Air, Spice Jet etc. Infact the Indian Aviation Industry was one of the
fastest growing Aviation Industries in the entire world. Economic growth and
increasing link with global businesses resulted in a dramatic increase in passenger
traffic. However, the current global economic slowdown and dramatic rise in
aviation fuel prices continues to negatively impact the Aviation Industry across
the world.

Overview of Indian Airline Sector-

The Indian aviation market is booming. The estimated growth of domestic
passenger segment is at 50% per annum and growth for international passenger
segment is 25%. The international cargo is likely to grow at
a rate of 12%.

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

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 overall growth of 35.5 per cent. Moreover, the 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.

According to Ministry of Civil Aviation, India will need 1,500 to 2,000 passenger
planes in next 10 years. Over 135 aircrafts have already been added in the last
two years alone. By 2011, India's fleet strength will stand at 500-550. It is also
estimated that the domestic market size will cross 60 million and the
international traffic will reach 20 million in the same period. By 2020, Indian
airports are estimated to handle 100 million passengers, including 60 million
domestic passengers. The amount of cargo handled will fall in the range of 3.4
million tonnes per annum.
AIRLINES: CURRENT FLEET AND ACQUISITION & INVESTMENT PLANS

Airlines Current Acquisition

Jet Airways 62 30 by 2012
Air Deccan 43 79 by 2010
Kingfisher 11 100 by 2012
Spice Jet 6 38 by 2010
Go Air 4 33 by 2008

• Liberalization on Aviation sector followed a rapid transformation of Indian

Airline Industry which has gone from being a government-owned industry to an
industry which is now being dominated by the privately owned airlines, offering
both full services and low cost carriers.
• The first low cost airline, Air Deccan was launched in the year 2003 with the
key objective to increase their reach to a largely untapped middle class segment.
Low cost carriers were primarily driven by the increasing per capita income,
improved connectivity and affordability. Supportive Government initiatives and
increasing private and public investments further boosted the industry. However,
airways still forms only a small part of the overall transportation services in
India, with annual passenger traffic of around 96 million in 2007, compared
to 6 billion passengers carried by railways in the same year.

Month-wise Air passenger traffic trend has shown

in the chart below:

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Sector structure/Market size

With a growth rate of 18 per cent per annum, the Indian aviation industry is
one of the fastest growing aviation industries in the world. The government's
open sky policy has led to many overseas players entering the market and the
industry has been growing both in terms of players and number of aircrafts.
Today, private airlines account for around 75 per cent share of the domestic
aviation market.

India has jumped to 9th position in world's aviation market from 12th in 2006.
The scheduled domestic air services are now available from 82 airports as
against 75 in 2006.

Classification of Indian Aviation Sector:

The Indian aviation sector can be broadly divided into the following main
categories:
1. Scheduled air transport service, which includes domestic and international
airlines.
2. Non-scheduled air transport service, which includes charter operators and air
taxi operators.
3. Air cargo service, which includes air transportation of cargo and mail.

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Scheduled air transport service: It is an air transport service undertaken
between two or more places and operated according to a published timetable. It
includes:

1. Domestic airlines, which provide scheduled flights within India and to select
international destinations. Air Deccan, Spice Jet, Kingfisher Airline and IndiGo
are some of the domestic players in the industry.

2. International airlines, which operate scheduled international air services to and

from India.

Non-scheduled air transport service: It is an air transport service other

than the scheduled one and may be on charter basis and/or non-scheduled basis.
The operator is not permitted to publish time schedule and issue tickets to
passengers.

Air cargo services: It is an air transportation of cargo and mail. It may be on

scheduled or non-scheduled basis. These operations are to destinations within
India. For operation outside India, the operator has to take specific permission of
Directorate General of Civil Aviation demonstrating his capacity for conducting
Such an operation.

At present, there are 2 scheduled private airlines (Jet Airways and Air Sahara),
which provide regular domestic air services along with Indian Airlines. In
addition there are 47 non-scheduled operators providing air-taxi/non-scheduled
air transport services.

MAJOR PLAYERS Some Major Players…

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Players in Indian aviation industry can be categorized in three groups:
• Public players - Air India, Indian and Alliance Air
• Private players - Air Deccan, Air Sahara, Go Air Airlines, IndiGo Airline, Jagson
Airline, Jet Airways, Kingfisher Airline, Paramount Airways, Spice Jet Airlines.
• Start up players - Omega Air, Magic Air, Premier Star Air and MDLR Airlines.

SWOT ANALYSIS OF AIRLINE INDUSTRY

STRENGTHS

• In Dec’ 06, domestic market witnessed average daily carriage of around 1.14
lakh Passengers per day – another first for the industry

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 • Indian aviation market has been booming – domestic at 46%, and international
at 17%, over the past 2 – 3 years
• 6 new airlines, almost all operating on the LCC model
• Strong capacity growth in the domestic market, mainly in the LCC segment
• Strong economic growth

WEAKNESSES
• Under penetrated Market : The total passenger traffic was only 50 million
as on 31st Dec 2005 amounting to only 0.05 trips per annum as compared to
developed nations like United States have 2.02 trips per annum.
• Untapped Air Cargo Market: Air cargo market has not yet been fully
taped in the Indian markets and is expected that in the coming year’s large
number of players will have dedicated fleets.
• Infrastructural constraints: The infrastructure development has not kept
pace with the growth in aviation services sector leading to a bottleneck. Huge
investment requirement for physical infrastructure for airports.
• LCC’s and other new entrants together now command a market share of
around 46%

• Legacy carriers forced to match low LCC fares, during a time of escalating
costs

• The bottom-line – lower yields for all operators

OPPURTUNITIES:
• Expecting investments: investment of about US $30 billion will be made.
• Expected Market Size: Average growth of aviation sector is about 25%-30%
and the expected market size is projected to grow upto100 million by 2010.
• The 4th largest & 2nd fastest growing economy in the world - GDP growth of
9.2% in Q3 2006
• Over 300 million strong middle class
• Disposable incomes expected to increase at an average of 8.5% p.a. till 2015
(Price Waterhouse Coopers, 2005)
• Estimated 50 million premium railway passengers per annum
• 390 million strong domestic tourism market, growing at ~13%
• Foreign tourist inflows of 4.43 million, also growing at ~13%

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 THREATS:

• Shortage of trained Pilots: There is a shortage of trained pilots, co-pilots

and ground staff which is severely limiting growth prospects.
• Shortage of Airports: There is a shortage of airport facilities, parking bays,
air traffic control facilities and takeoff and landing slots.
• High prices: Though enough number of low cost carriers already exists in
the industry, majority of the population is still not able to fly to other destinations.
• Oil Price
• Regulatory risk
• A collapse of the current coalition government could trigger significant
Changes in India’s economic liberalization and deregulation policies

STRATEGIC GROUPS

BASIS DESCRIPTION
• Full range carriers with • Jet, Indian, King Fisher and other
medium price full range carriers
• Low cost carriers with low • Air Deccan, Spice Jet, Go Air,
price Indigo and other Low cost
• Very high service with high carriers
price • Taj airways, Club one airways
• Good service with medium price • Kingfisher, Jet airways

a) Full range carriers with medium price

STRENGTH WEAKNESS

Wide coverage of services provided Less number of International

Destinations

OPPURTUNITIES THREATS

Greatest potential to capture and lead The new comers with low fares
in market

Examples:
Jet, Indian, King Fisher and other full Range carriers.

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 b) Low cost carriers with low price
STRENGTH WEAKNESS

Great facilities and technology No service for economic class

OPPURTUNITIES THREATS

Growing business class The low fare luxury service providers

Example:
Air Deccan, Spice Jet, Go Air, Indigo and other Low cost carriers

c) Very high service with high price

STRENGTHS WEAKNESS

Better service due to high fare. Less coverage within country

OPPURTUNITIES THREATS

Attractive for The growing middle class The low cost luxury service providers

Example:
Taj airways, Club one airways

c) Good service with medium price Strength

STRENGTHS WEAKNESS

Low fare as compared to higher service Very new in industry

Provider.
Better services than lcc.
Targeting to the middle class customers
OPPURTUNITIES THREATS

Huge potential to capture market Extra cost burden

Examples:
Kingfisher, Jet airways

Reasons for Boom in Aviation Industry:

• Foreign equity allowed: Foreign equity up to 49 per cent and NRI (Non-
Resident Indian) investment up to 100 per cent is permissible in domestic airlines

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without any government approval. However, the government policy bars foreign
airlines from taking a stake in a domestic airline company.
• Low entry barriers: Nowadays, venture capital of $10 million or less is
enough to launch an airline. Private airlines are known to hire foreign pilots, get
expatriates or retired personnel from the Air Force or PSU airlines in senior
management positions. Further, they outsource such functions as ground handling,
check-in, reservation, aircraft maintenance, catering, training, revenue accounting,
IT infrastructure, loyalty and programme management. Airlines are known to take
on contract employees such as cabin crew, ticketing and check-in agents.
• Attraction of foreign shores: Jet and Sahara have gone international by
starting operations, first to SAARC countries, and then to South-East Asia, the
UK, and the US. After five years of domestic operations, many domestic airlines
too will be entitled to fly overseas by using unutilized bilateral entitlements to
Indian carriers.
• Demographically, India has the highest percentage of people in age group of
20-50 among its 50 million strong middle class, with high earning potential.
All this contributes for the boost in domestic air travel, particularly from a
low base of 18 million passengers.
• Untapped potential of India's tourism: Currently India attracts 3.2 million
tourists every year, while China gets 10 times the number. Tourist arrivals in India
are expected to grow exponentially, especially due to the open sky policy between
India and the SAARC countries and the increase in bilateral entitlements with
European countries, and US.
• Glamour of the airlines: No industry other than film-making industry is as
glamorous as the airlines. Airline tycoons from the last century, like J. R. D. Tata
and Howard Hughes, and Sir Richard Branson and Dr. Vijaya Mallya today, have
been idolized. Airlines have an aura of glamour around them, and high net worth
individuals can always toy with the idea of owning an airline. All the above factors
seem to have resulted in a "me too" rush to launch domestic airlines in India.

Challenges for Aviation Industry:

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 The growth in the aviation sector and capacity expansion by carriers has
posed challenges to aviation industry on several fronts. These include
shortage of workers and professionals, safety concerns, declining returns
and the lack of accompanying capacity and infrastructure. Moreover, stiff
competition and rising fuel costs are also negatively impacting the
industry.

• Employee shortage: There is clearly a shortage of trained and skilled

manpower in the aviation sector as a consequence of which there is cut-throat
competition for employees which, in turn, is driving wages to unsustainable levels.
Moreover, the industry is unable to retain talented employees.
• Regional connectivity: One of the biggest challenges facing the aviation
sector in India is to be able to provide regional connectivity. What \is
hampering the growth of regional connectivity is the lack of airports?

• Rising fuel prices: As fuel prices have climbed, the inverse relationship
between fuel prices and airline stock prices has been demonstrated. Moreover, the
rising fuel prices have led to increase in the air fares.
• Declining yields: LCCs and other entrants together now command a market
share of around 46%. Legacy carriers are being forced to match LCC fares, during
a time of escalating costs. Increasing growth prospects have attracted & are likely
to attract more players, which will lead to more competition. All this has resulted in
lower returns for all operators.

• Gaps in infrastructure: Airport and air traffic control (ATC) infrastructure

is inadequate to support growth. While a start has been made to upgrade the
infrastructure, the results will be visible only after 2 -3 years.

• Trunk routes: It is also a matter of concern that the trunk routes, at

present, are not fully exploited. One of the reasons for inability to realize the full
potential of the trunk routes is the lack of genuine competition. The entry of new
players would ensure that air fares are brought to realistic levels, as it will lead
to better cost and revenue management, increased productivity and better

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services. This in turn would stimulate demand and lead to growth.
• High input costs: Apart from the above-mentioned factors, the input costs
are also high. Some of the reasons for high input costs are:-
 Withholding tax on interest repayments on foreign
currency loans for aircraft acquisition. Increasing manpower costs due to
shortage of technical personnel.

11th Plan Projections

• The airport sector has attracted considerable private interest. According to

the 11th Plan projections, of the total investment requirement of Rs30, 968 crore,
as much as 70% (Rs21630 crore) is envisaged by way of private investment.
• The PPP route has progressively gained importance and is being used
either for modernization or construction of airports or only for city-side
development at airports. While the Cochin Airport was the only privately
managed airport till the mid 2000s, there are now four more privately managed
international airports in India viz., Delhi, Mumbai, and the two greenfield airports
of Hyderabad, and Bangalore.

• More Greenfield airports at Goa, Navi Mumbai, Pune, Greater Noida and
Kannur are being considered for development. The government has further
identified 35 non-metro airports for development, involving the setting up of
terminal buildings, car parks, and cargo and other airside facilities

• The development of these airports would be taken up in three phases and

the project model would be that all aeronautical services will be handled by the
AAI, while PPP mode would be adopted for the development of non-aeronautical
activities at the city-side of these airports. Further, proposal for establishment of
merchant airports is also being examined.
• The infrastructure in the merchant airports is completely developed by the
private sector, while the government will be providing safety and security at these
airports. Setting up of dedicated cargo airports which would help the cargo
carriers to avoid the problem of high rentals charged by the metro airports, is also
being examined. The government has taken proactive steps for the development of
airport infrastructure. For instance, in the case of the Greenfield airports at
Bangalore and Hyderabad, which become operational in 2008.

The projected air traffic during 2009-2017 is as under:

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 Peer review and performances of some major players for June 2009
Quarter (in crores).

The majority of the market share is with Kingfisher followed by Jet

Airways.

Company Jet Airways Kingfisher Spice jet

Revenues 2371 1313 534.4
EPS (26.10) (8.49) 0.117
CMP 318 52 33.5

The airlines scale of operations:-

SCALE OF OPERATIONS

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 AIRLINES AIRCRAFTS DESTINATIONS DAILY FLIGHTS
Air India 157 106* 400
Jet Airways 85 63* 380
Kingfisher 73 69* 400
Spice Jet 19 18 (Domestic) 125
IndiGo 21 17 (Domestic) 137
Paramoun 5 16 72
t
* Domestic and International

The profit and loss of the airlines in crores are as follows:

PROFIT/LOSS ACCOUNT (in Rs crore)

AIRLINES 2005-06 2006-07 2007-08
Kingfisher (-) 233.77 (-) 577.31 (-) 408.92
Jet Airways 538.76 27.94 (-) 253.06
Go Air (-) 58.4 (-) 237.47 (-) 174.76
Spice Jet (-) 48.53 (-) 72.14 (-) 133.51
Air Deccan (-) 322.33 (-) 419.57 (-) 798.35
Paramount (-) 17.77 1.63 1.17
IndiGo N/A (-) 201.79 (-) 234.75
JetLite (-) 59.49 (-) 689.66 (-) 441.50
From a Lok Sabha answer by Minister for Civil Aviation, Mr. Praful Patel

As one can see that the airline sector is still reeling under pressure
of slowdown from the 2nd quarter results. There are several
other factors which are responsible for the losses suffered by this
sector:

• Aviation Turbine Fuel

The problem of ATF started when just before the recession and Leman
Brother Crises the oil prices rose to around $ 140 per barrel. This led to increase
in ATF prices which had tremendous impact on airline companies’ revenues.
State-owned oil firms have raised jet fuel or Aviation Turbine Fuel (ATF) price by
an average of Rs 2,750 per kilolitre or about 10 per cent, making it the second
such hike in 15 days. ATF will now cost Rs 29,926 per kl, against Rs 27,274.95.
ATF consist of almost 40% of airlines operational cost. This move by state owned
oil firms will definitely add pressure on the airlines to increase the air fare which
will further add pressure on their bottom lines.

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 • High debt burden
If civil aviation ministry sources are to be believed, the debt position of the
three biggies — Jet Airways, Kingfisher Airlines and Air India — is no smaller
than that of the real estate majors, and would amount to around Rs 30,000 crore
($6 billion) for the financial year ended March 2009. Almost half (Rs 13,000-15,000
crore) will be working capital loans and borrowings by Air India followed by
around Rs 10,000 crore of debt by Jet Airways (including current liabilities) and
another Rs 7,800-8,000 crore or so by Kingfisher Airlines. The losses suffered by
these companies are not helping the companies to repay their debt. Kingfisher, Jet
and Spice jet owe Rs 1,726 crore to oil marketing companies. According to a recent
report in a business daily, Jet Airways has not paid service tax on import of
Services for the past three years. “The service tax department has asked it to “pay
the service tax of Rs 247.47 crore for the period 2005-06 to 2007-08, along with the
interest,” said the report

• Full service model and business class travel –

Most of the analysts think that problem lies with the full service model. Some point
out that the full service model is not relevant beyond six metros. The full service
carriers offer meals, lounges etc. On the Delhi-Mumbai route for instance, the full-
service fare for business is around Rs 45,000 return against Rs8, 000 for full fare
economy, a substantial difference by any standards. A slump in premium travel is
currently a global phenomenon, with International Air Transport Association
(IATA) reporting a 16.7 percent decline in January 2009 followed by an even
sharper fall of 21 per cent in February. Economy travel has also fallen, but not as
sharply as premium tickets.

Problems faced by Air India:

• The spiral dive began in 2006-07. Air India made a loss of Rs 541 crore and
Indian Airline's loss was Rs 230 crore. In about 700 days, from March 31, 2007 to
March 31, 2009 during which the airlines merged the losses rocketed to a mind-
boggling Rs 7,200 crore.
• The 800% increase in its losses in two years has much to do with the
manner in which: Air India and Indian (formerly Indian Airlines) were merged;
aircraft were leased or purchased; capacity was gifted away to foreign airlines
under bilateral agreements.

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• Ground-handling in Bangalore and Hyderabad was relinquished to a
proposed joint venture (and attempts are on to do the same elsewhere).
• Flights were withdrawn from profitable routes; pilots were sent for proper
training. Route to bigger losses. The losses really began from 2006 onwards when a
decision to aggressively dry and wet lease aircraft was taken to increase market
share. There was no proper route study, marketing or pricing strategy. The airline
took heavy losses till the market built.
• Air India's given up one of its money-spinning operations for no good
reason. In Bangalore and Hyderabad airports, Air India now has to share
its revenue from ground handling with Singapore Airport Terminal
Services (SATS). From next year, “the airline will have to pay AI-SATS
even to handle its own flights'' a senior airline official said.
• But what hit the airline most has been the civil aviation ministry's
generosity towards foreign airlines. Every country in the world protects its
interests when it enters into bilateral agreements. But not India. Thanks to
liberal bilateral, foreign competitors are pounding Indian carriers not just
in airports like Mumbai and Delhi, but also in places like Nagpur, Kochi
and Ahmadabad. As a result, AI's share of the overseas market has been
steadily declining.

Airport Infrastructure

• Mumbai and Delhi airports have already been privatized and are being
upgraded at an estimated investment of US$ 4 billion over 2006-16.Greenfield
airports are operational at Bangalore and Hyderabad. These are built by private
consortia at a total investment of over US$ 800 million.
• A second Greenfield airport being planned at Navi Mumbai is going to
be developed using public-private partnership (PPP) mode at an estimated cost
of US$ 2.5 billion.
• 35 other city airports are proposed to be upgraded.
• Over the next five years, AAI has planned a massive investment of US$
3.07 billion—43 per cent of which will be for the three metro airports in Kolkata,
Chennai and Trivandrum, and the rest will go into upgrading other non-metro
airports and modernizing the existing aeronautical facilities.

Aviation Policy:

• 100 per cent FDI under automatic route is permissible for Greenfield
airports.
• For existing airports, FDI up to 74 per cent is permitted through automatic
approvals and up to 100 per cent through special permission (from FIPB).
• Private developers allowed to setup captive airstrips and general airports
150 km away from an existing airport.100 per cent tax exemption for airport
projects for a period of 10 years.
• The Indian government plans to set up an Airport Economic Regulatory

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Authority to provide a level playing field to all players.

AIRPORT CLASSIFICATION

Airports are presently classified in the following manner:

1. International Airports: - These are declared as international airports and are

available for scheduled international operations by Indian and foreign
carriers. Presently, Mumbai, Delhi, Chennai, Calcutta and
Thiruvananthapuram are in this category.

2. Domestic Airports:

a. Customs Airports with limited international operations: - These have

customs and immigration facilities for limited international
operations by national carriers and for foreign tourist and cargo
charter flights. These include Bangalore (CE), Hyderabad,
Ahmedabad, Calicut, Goa (CE), Varanasi, Patna, Agra (CE), Jaipur,
Amritsar, Tiruchirapally, Coimbatore, Lucknow.

(CE - Civil Enclave)

22
 Bangalore airport

b. Model Airports: - These domestic airports have minimum runway

length of 7500 feet and adequate terminal capacity (400 passengers or
more) to handle Airbus 320 type of aircraft. These can cater to limited
international traffic also, if required. These include Bhubaneswar,
Guwahati, Nagpur, Vadodara, Imphal and Indore. Rest 6 Nos. of
airports, developed under Model Airports concept has graduated to
the classification of Customs Airports, given above.
c. Other Domestic Airports: - All other 71 domestic airports are covered
in this category.
d. Civil Enclaves in Defence Airport:- There are 28 civil enclaves in
Defence airfields. Twenty civil enclaves are in operation.

PRIVATE SECTOR PARTICIPATION

• The Government of India keeping in line with its policy of liberalisation

decided to corporatise Delhi, Mumbai, Chennai, and Calcutta airports in
order to induct the much needed capital for expansion and modernisation of
these airports to world class standards. Accordingly, AAI sought for
consultants, both for Financial and Legal to advise AAI for the entire
process. AAI issued advertisements seeking Expression of Interests (EOI)
globally from prospective financial and legal consultants. Action for
appointment of financial consultant is on hand.

• Government has decided to set up a parallel Cargo Terminal at IGI Airport

by way of a joint venture between AAI and private sector, in order to offer
an option to users so as to achieve better services and increased efficiency
through healthy competition. AAI has invited Expression of Interest for
appointment of a Consultant for advising on the modalities of forming a
Joint Venture.

23
 • AAI signed MOU in the month of May, 1999 with Karnataka State Industrial
Investment & Development Corporation Limited (KSIIDC) to establish a
new airport of international standards at a site near Devanhalli, Bangalore
by bringing in funds from the private sector to handle both passenger and
cargo, domestic and international traffic to meet the growing demand of
Bangalore city.

GMR participation in the Delhi airport (above figure)

• AAI signed MOU in May 1999 with Cochin International Airport Limited -
the new airport constructed at Cochin (in Kerala State) jointly by State Govt
and Private Sector. The MOU provides for limited equity participation of
AAI towards the cost of CNS/ATM facilities and also for rendering the
services for operation and maintenance of CNS/ATM facilities.
• Over the past year, various companies have shown an interest in the
Indian aviation industry. Investment in airport infrastructure was over US$ 5
billion in 2008 and will go up US$ 9 billion by 2013, of which close to US$ 6.8
billion is expected to come through public private partnerships (PPP) model,
according to a study by research firm Frost & Sullivan.

• Tata Advanced System Limited (TAS), a unit of the Tata group, will set up a
US$ 113.63 million helicopter manufacturing unit at the Aerospace Special
Economic Zone (SEZ) in Adhibatla village near the Hyderabad international
airport.
• Global Vectra Helicopters, a dedicated offshore transportation services
company servicing the oil & gas exploration and production sector in India,
plans to invest US$ 130 million during the next two years to increase its fleet
strength as well as consolidate its operations.

24
• Changi Airports International is ready to enter into joint ventures with
more Indian companies in developing airports. The company, which has picked
up a 26 per cent stake for US$ 20 million in Bengal Aerotropolis Pvt Ltd (BAPL),
is looking at other opportunities.
• GMR Infrastructure is looking to tap the growing corporate jet market
in India with investment plans to the tune of US$ 151 million. It is also in talks
with aircraft component manufacturers such as Honeywell and Safran to set up a
components assembly plant in the country.
.
• US aircraft maker, Boeing Co, will deliver 100 planes worth US$ 17
billion over the next four to five years to India

FUTURE PLANS: TRANSITION INTO 21st CENTURY

The AAI has drawn ambitious long term plans to meet challenges posed by ever
increasing air traffic and advancement in aircraft technology. Some of the major
plans for implementation of ICAO CNS/ATM program are:-

• Replacement of ground based Communication, Navigation and Surveillance

(CNS) with Satellite based CNS system.

• Establishment of Differential Global Positioning System (DGPS).

• Aerospace major Boeing forecasts that the Indian market will require
1,000 commercial jets in the next 20 years, which will represent over 3 per cent of
Boeing Commercial Airplanes’ forecasted market worldwide. This makes India a
US$ 100 billion market in 20 years.
• Associated areas such as maintenance repair and overhaul (MRO) and
training offer high investment potential. A report by Ernst & Young says the
MRO category in the aviation sector can absorb up to US$ 120 billion worth of
investments by 2020.
• Automation in the Air Traffic Control Services.

• Establishment of Automatic Dependent Surveillance (ADS).

• Investment opportunities of US$ 110 billion envisaged up to 2020 with
US$ 80 billion in new aircraft and US$ 30 billion in development of airport
infrastructure.
• Coverage of the Indian land mass through Satellite Communication, VHF
Data Links and Monopulse Secondary Surveillance Radar with Mode 'S'
Capability.

25
 A glimpse of the new t3 terminal of Delhi airport

ROLE OF AAI TOWARDS TOURISM:

26
The airport authority of India manages & controls almost all the airports in the
country. it plays a major role in proper functioning of these airports. Airports &
ports are the gateway of India. As the gateway of India is very beautiful, it is very
necessary to keep our airports also beautiful by keeping it clean. From time
immemorial it is well known that whenever a tourist arrives from outside country to
any particular destination in another country the first thing the tourist sees is the
port or airport, thus it is very essential to provide all kinds of facilities to these
airports.

FACILITIES AT THE DOMESTIC DEPARTURE TERMINALS:

• Free baggage trolleys

• Toilets for physically handicapped
• Infants lobby
• TR Shop
• Restaurant
• Snacks-bars
• Tea/coffee/soft drink stalls
• Std/ISD counters
• Post & telegraph
• Air insurance
• ATM machines
• Entertainment TV
• Magazine vending machines
• Wi-Fi internet
• AMEX/Citibank desks

27
FACILITIES AT THE DOMESTIC ARRIVALS:

• Free passenger baggage trolleys

• Toilets for physically challenged
• Free inter-terminal coaches
• Car rental services
• City coach services
• Prepaid taxi counters
• Radio/ac cabs
• Tourism counters
• Snack bar
• Florist shop
• Internet café
• Tea/coffee/soft drink stalls

28
FACILITIES AT THE INTERNATIONAL TERMINALS:

• Free baggage trolleys

• Duty free shops
• Toilets for physically challenged
• Infants lobby
• Restaurants
• Fast food
• Tea/coffee/soft drink stalls
• Airline CIP lounges
• TR shop/chemist/florist
• Baggage wrapping
• Currency exchange
• ATM
• STD/ISD counters
• Air insurance
• Mobile phone hiring
• Post office
• Tourist kiosks

29
GENERAL FACILITIES AT DOMESTIC & INTN’L AIRPORTS:

• Retiring rooms
• First-aid/medical facility
• Lost & found help desk
• Transportation of diplomatic mail
• Ambulance from aircraft to city side
• Welcome counters
• Reserved car park for VIPs’
• Conference hall

30
Thus with the help of above all facilities provided by AAI TO THE
AIRPORTS it fosters to the growth of tourism as:

• It stands & caters to the need & expectation of the tourist.

• It provides safety & security to all the tourists by meeting their demands.
• It helps in earning the foreign exchange as the growth rate of the tourist
business increases.
• It helps in developing better infrastructure by providing good airports & air
services.
• With a secured & assured infrastructure it helps in building country’s
reputation.

Therefore we can say that AAI plays a major role towards tourism by
continuously working for better infrastructure & for providing world class
airports.

CHECK-IN FORMALITIES & CUSTOM CLEARANCE

31
• The main purpose of check-in formalities is to maintain the count how many
passengers are on board the aircraft. Passengers require a valid ticket for check-in,
if the tickets need an alteration; the passenger has to connect the ticket prior to
check-in.

• The check-in counter staff requires the following travel documents other than a
valid ticket.

• They are:

• Passport to see the validity.

• Visa- mostly stamped on passport except people going to USA.

• Health certificate

• Transit visa

• Whatever the specific layout, airports have airline check-in and ticketing desks
located at the main departure area. Large metropolitan airports may have a
terminal for each airline.

• Check-in procedures differ for domestic and international flights. Ticketed

passengers arriving at the airport for domestic flights can check their bags at
curbside or at the check-in counter. Passengers for international flights must
check their bags at the counter.

• Lets us see how passengers undergo check-in process in domestic and

international terminals.

CHECK-IN PROCESS IN DOMESTIC TERMINAL

32
 This process can be explained in the following steps:

DEPARTURE

• When a passenger enters the airport after getting the ticket confirmation from the
travel agency, his first confrontation is with the security guard who checks the
ticket for the destination and the date so as to ensure the bonafide traveler is
travelling.

• Thereafter the passenger moves to the baggage security where his checked-in
baggage is screened in the x-ray machine of respective airline and the baggage are
tagged with the name of the airline before he goes in the counter to check-in.

• There are different counter for different airlines where the passenger’s baggage is
weighed and in case of excess baggage, the passenger has to even pay fine.

• The check-in counter executive then hands over the boarding pass along with the
baggage tags.

• There are separate counters for business class, economy class, and the people with
hand baggage only. The number of open check-in desks may vary depending in
the number of passengers booked on a particular flight.

• After collecting the boarding pass, the passengers are called for the security check
so as to make sure that each passenger knows the extent of his baggage and check
the identification of the passengers. The baggage starts arriving within about 20
minutes of landing.

• The passenger only carries the boarding pass and his hand baggage.

• The security guard checks the boarding pass along with the baggage tag which is
on the passengers hand baggage.

• The hand baggage is screened on the x-ray machine for any kinds of objects,
explosive that are not supposed to be carried in the aircraft, and the passenger is
also frisked.

33
• The boarding pass is stamped and handed over to the passenger and the passenger
is thereafter not allowed to leave the security check area.

• The boarding announcement is made which is displayed on electronically

controlled flip boards & TV monitors and the passenger are asked to move to their
respective boarding gates fro boarding the aircraft.

• At the boarding gate, the airline personnel checks for the boarding card number,
and the hand baggage allowing with the passenger is frisked again by the airline
personnel.

• The passenger is taken to the aircraft by a bus. On the ramp there is an airline
personnel standing who collects the stubs from the boarding pass and the
passenger are allowed to board the aircraft.

34
CHECK-IN PROCESS AND CUSTOM CLEARNCE FORMALITIES IN
INTERNATIONAL TERMINAL

• Before checking in, a passenger has to undergo two main checks:

• 1. The ticket reservation check

• The ticket is valid

• The ticket name has to correspond to the name in the passport. Tickets are not
transferrable and name changes are not allowed. Verification of the photo can be
required.

• The flight coupons are used in their sequence.

• 2. The travel documents check

• The passenger is responsible to organize all required travel documents before

leaving:

• The valid passport

• The visa

• The required vaccinations have been done and are reported in the international
vaccination certificate.

• If the passenger has not the required travel documents, the check-n procedure will
not be finalized and the passenger will not be able to travel.

• BOARDING PASSES-to board an aeropalne, the passenger must have

• A reservation for the particular flight

• A ticket showing that the fare has been paid.

• A boarding pass

• This process is explained in the following steps:

• The passenger books the ticket through the travel agent or directly through the
airline.

• Passenger approaches/applies for a visa through the destination

embassy/consulate.

35
• Passenger applies for his foreign exchange through the authorized foreign
exchange banks.

• Passenger goes to the airport on departure day, and shows his passport and
verifies ticket at the entry gate.

• Then the passenger passes his check-in luggage through x-ray and the same is
security sealed.

• Passenger approaches the check in counter of respective airlines with the baggage
and all travel related documents (ticket, passport with visa/immigration
documents).

• Passenger is checked in and issued a boarding card after verification of travel

documents and directed towards immigration counter with immigration card.

• Passenger is granted IMMIGRATION CLEARANCE after his passport is

checked and verified for authentication and boarding card is stamped with
immigration seal. When leaving from certain countries passengers have to pay an
airport tax before passing passport control. The immigration officer should
quickly scan the immigration card, stamp the passport and clears five or six
passengers per minute.

36
• Then the passenger approaches customs desk for CUSTOM CLEARANCE .here
passengers may be questioned and searched by custom official authorities to
ensure that they are not carrying any prohibited items. Passengers have to declare
if she/he is carrying a camcorder/laptop/excessive jewellery and currency for
necessary endorsement on passport. Here airline staff directs passenger towards
the security check gates.

• Passenger enters the security gate where his boarding card is verified to ascertain
if passenger has obtained immigration/custom clearance and is directed towards
security checks.

• Passenger then goes through a physical security check before approaching

boarding gate and there the airline personnel direct the passengers towards a
closed path which heads towards the aircraft and finally board the aircraft.

37
 CUSTOMS CONTROL ON ARRIVAL

After immigration and passport control the international baggage claim area
is located prior to customs control. The checked baggage is delivered in the
baggage claim area which is located after immigration and before custom
control. Passenger can exchange foreign currency in the baggage and before
customs control. For arriving domestic flights there is no passport or
customs control.

The passengers have the choice of two ways to pass beyond the customs
inspection point to the exit to the arrival hall & the meeting area:-

a) THE RED CHANNEL - Goods to declare and paying voluntarily a

regular duty free goods to import.

• If the goods brought abroad exceeds the personal duty free allowance
• If importing goods for business reasons
• If importing goods needed a special license, certificate, authorization or
should be declared on arrival.

38
 • If importing plants, seeds, or animals or their products to confirm the
validation of certificates.
• If having to declare foreign currency.
• If imported goods are duty free or not.

b) THE GREEN CHANNEL- Nothing to declare

A passenger, who brings personal effects and goods not exceeding the duty
free allowance, is allowed to pass through the green channel. The travel
information manual (TIM), the embassy or consulate, tourist office, recent
travel publications, the airline or travel agents will provide the exact
quantity, restrictions and prohibition of imported goods without payment of
custom duty without feeling existing laws.

The green channel, depending on the country of entry involves:

• The baggage might be not checked at all

• The custom officers might be doing some spot check to enforce law.
• The custom officers might open & check baggage very carefully.

Therefore, passengers are supposed to give correct information to the custom

officials. If they give some wrong information to the custom officials,
especially in foreign country which might result to lot of problems, many
years of imprisonment or even in the death penalty. For e.g. trafficking of
illegal drugs, arms or other prohibited dangerous goods.

In some countries an alien might be exempted to pay the local sales tax of
goods purchased. In this case, a tax exemption form from the shop should be
stamped by the custom authority before leaving the country.

39
DOCUMENATATION:

For every passenger travelling by air it is required by him/her to have all the
necessary travel documents other than a valid ticket like:

a): PASSPORT-according to passport act 1967, a passport is defined as an official

document issued by a competent public authority to nationals or to alien legetant of
the issuing country. It established the bearer’s nationality and authorizes the holder
to travel abroad. There are several types of passport:

• White color passport-it is called official passport. It is issued to every

person who is going abroad on any assignment of govt. of India.
• Red color passport-it is only used for the ministers, secretary, joint-
secretary, deputy secretary.
• Blue color passport-it is issued to any Indian citizen going abroad.
• International Red Cross passport-it is issued to employees or projected
awardees of UNESCO project.

b): VISA- visa is mainly an endorsement on the passport especially allowing the
entrance to or exit from any country. Certain types of visas are:

40
TOURIST VISA:

Is given for 6 months normally, rest specifically depends on the country of

residence. The applicant is required to produce/submit documents in proof of his
financial standing. Tourist travelling in groups of not less than four members under
the auspices of a recognized travel agency may be considered for grant of collective
tourist visa.

BUSINESS VISA:

Valid for one or more year with multiple entries. a letter from sponsoring
organization indicating nature of business, probable duration of stay, places and
organizations to be visited incorporating there in a guarantee to meet maintenance
expenses, etc…Should accompany the application.

STUDENT VISA:

Are issued for the duration of the academic course of study or for a period of five
years whichever is less, on the basis of firm letters of admission from
universities/recognized colleges or educational institutions in India. Change of
purpose and institutions are not permissible.

41
TRANSIT VISA:

Are issued for a maximum of 15 days with single/double entry facilities to bonafide
transit passengers only.

VISA TO MISSSIONARIES:

Are valid fro single entry and duration as permitted by government of India. A
letter in triplicate from sponsoring organization indicating destination in India,
probable length of stay, and nature of duties to be discharged should be submitted
along with guarantee for applicant’s maintenance whole in India.

JOURNALIST VISA:

Are issued to professional journalists and photographers for visiting India. The
applicants are required to contact on arrival in New Delhi, the external publicity
division of the ministry of external affairs and in other places, the office of the
government of India’s press informational bureaus.

CONFERENCE VISA:

Are issued for attending conferences/meetings in India. A letter of invitation from

the organizer of the conference is submitted to along with the
Visa application. Delegates coming to attend conferences may combine tourism with
attending conferences.

EMPLOYMENT VISA:

Are issued to skilled and qualified professionals or persons who are engaged or
appointed by companies, organizations, economic undertakings as technicians,
technical experts, and senior executive’s etc. Applicants are required to submit
proof of contract/employment/engagement of foreign nationals by the company or
organization.

42
SCOPE OF STUDY:

The project report aims at studying not only the airline industry in the
country but also the main focus on the check-in formalities and custom
clearance procedures that are undergone by the passenger or the tourist
before boarding the aircraft. The reason for studying the operations
department of AAI is to understand the needs of the passengers and help in
the proper functioning of the airport.

The purpose of study is to find out the satisfaction level of the passengers
regarding the check-in formalities that they undergo before training.
Another main purpose is to satisfy government requirements, so that govt.
records are maintained.

OBJECTIVE OF THE STUDY:

• To understand the entire process of check-in and custom clearance that the
passengers undergo i.e. from the time when they enter the airport building
till they board the aircraft.

• To see what roles does the check-in and custom department plays in proper
functioning of the airports and movement of the flights.

• To find out what all services are provided to the passenger while check-in.

• To get the feedback from the passengers regarding the check-in formalities
and analyze & interpret the result.

43
RESEARCH METHODOLOGY

Research methodology is an instrument to get the relevant information or data for the
purpose of subject of study. It indicates from what sources the data is collected. All the
information regarding CHECK-IN FORMALITIES AND CUSTOM CLEARANCE are
been collected with the help of two main sources-PRIMARY AND SECONDARY data.
It helps in the obtaining the data and analyze & interpret them and helps in identifying
the various problems that are faced by the researcher while studying.

SOURCES:

• PRIMARY SOURCES-these are the sources from where the information are
collected for the first time and is original in nature. one of the main primary
sources used to study this subject is through the questionnaire, which is a kind of
face to face communication in which the researcher prepares a set of questions
with certain options and the other person is asked to fill it as per his/her view
point. The questionnaire is attached further along with the analysis and
interpretation of the outcomes. Questionnaire is communication method used to
collect requisite information.

Questionnaires are mainly of two types:

1. Structured questionnaire.
2. Unstructured questionnaire

STRUCTURED QUESTIONNAIRE:
It is a formal list of questions framed so as to get the facts. The interviewer asks the
questions strictly in accordance with a pre-arranged order. Structured questionnaire is
used in undertaking this study.

UNSTRUCTURED QUESTIONNAIRE:
It is one in which the questions are not structured and the order in which they are
to be asked from the respondents is left entirely to the researcher. He asks questions in
the manner in which he deems fit in a particular situation.

STRNGTH of questionnaire:

1. It facilitates the collection of information in a systematic and orderly manner as

the questions have been formulated in advance.

2. A structured questionnaire calls for a straight forward and simple approach on the
part of the interviewers.

44
 3. Such a questionnaire makes it far easier to edit, tabulate and interpret the data it
contains.

WEAKNESS of questionnaire:

1. In case of unstructured questionnaire, the role of the interviewer becomes far

more important as compared to the one when a structured questionnaire is used.

2. The interviewer needs more time per interview if it is unstructured.

3. The researcher faces problems while editing and tabulating an unstructured

questionnaire.

• SECONDARY SOURCES-any data which has been gathered earlier for

other purpose are secondary data. Thus primary data collected for one
purpose becomes the secondary data for another. Examples: BOOKS,
WEBSITES, and MAGAZINES.etc…

MERITS:

1. It is far more economical, as the cost of collecting original data is saved.

2. The use of secondary data saves much of the time of the researchers.

3. It can be used as a basis for comparison with the primary data that has been
collected.

DEMERITS:

1. The accuracy of the collected data

2. Dubious data

3. It may be even out of date.

45
 ANALYSIS & INTERPRETATION
Interpretation means explanation or finding out the meaning. It involves
drawing from the analysis of data. Interpretation and analysis are closely
interlinked. Analysis of data often includes a simultaneous interpretation of
the results. The analysis and interpretation of the information collected is
Done on the basis of outcome of the questionnaire prepared. The analysis of
the questionnaire including 10 questions in all which will be done with the
help of graphical representation of each question by taking a sample of 30
respondents. The questions are as follows:

(1) Which airline do you prefer in terms of services provided by them (in check-
in)?

(a) KINGFISHER (b) INDIAN

(c) JET AIRWAYS (d) SPICEJET

12 11
NUMBEROF RESPONSES

10
8
8 7
6
4
4
2
0
KINGFISHER INDIAN JET AIRWAYS SPICEJET
With the help of the above we can see that AIRLIN ES
the passengers mostly prefer
KINGFISHER AIRLINES i.e. 11 people followed by JET AIRWAYS then
SPICEJET and finally in the race are INDIAN regarding the check-in services
provided to them at the airport.

(2) How do you judge the security check arrangement at Delhi Airport?

(a) EXCELLENT (b) GOOD

46
(c) AVERAGE (d) POOR

NUMBEROFRESPONSES 18 17
16
14
12
10
8 7
6 4
4 2
2
0
EXCELLENT GOOD AVERAGE POOR
OPTIONS
As you can see in the above graph the passengers or the customers have
judged the security check in the Delhi Airport as AVERAGE i.e. 17 people
are in favour of that, followed by 7 people who feel that the security check is
GOOD and rest 4 & 2 people have an opinion of POOR & EXCELLENT
respectively.

(3) Which stage is most time consuming in the check-in procedure?

(a) X-RAY COUNTER (b) BOARDING PASS

COUNTER

47
 (c) DOCUMENTATION (d) SECURITY CHECK

14 13
NUMBEROFRESPONSES

12 10
10
8
6 4
4 3
2
0
AY

SS

K
O

EC
R

PA

TI
X-

H
TA
RD

C
EN

TY
A
O

UM

RI
B

U
C

C
O

SE
D

Through the third graph it can be interpreted that passenger’s maximum

time is wasted during the SECURITY CHECK OPTIONSbecause after checking
through machine, the security personal sometime have to check manually
which is a time consuming process, followed by the BOARDING PASS
COUNTER where the passengers luggage is weighed and tagged & they get
the boarding pass after waiting for long time as the counters of different
airlines may be less.

(4) How do you feel customer care services provided at the airport?

(a) EXCELLENT (b) GOOD

(c) AVERAGE (d) POOR

48
 16 14

NUMBEROFRESPONSES
14 12
12
10
8
6
4 3
2 1
0
EXCELLENT GOOD AVERAGE POOR
OPTIONS
In the above 14 passengers feel that the customer care service at airport is
AVERAGE, 12 passengers are in favor that the services are GOOD, 3 passengers
scale the services as POOR & only 1 passengers feels customer services provided by
airport is EXCELLENT.

(5) Should there be an increase in the number of tourist information counters at the
Airport?

(a) YES (b) NO

49
 30 28

NUMBEROFRESPONSES
25
20
15
10
5 2
0
YES NO
OPTIONS
For a tourist arriving at a new place it is necessary for him getting all the
information about that place. That’s why tourist information counter plays a very
important role and most of the passengers i.e. 28 felt the need of increase in number
of tourist information counter, while 2 of them felt it’s not necessary to increase the
counter.

(6) Should there be any increase in the weight in baggage allowance?

(a) YES (b) NO

50
 25 23

NUMBEROFRESPONSES
20

15

10 7
5

0
YES NO
OPTIONSout of 30 passengers
Regarding the increase of weight in baggage allowance
23 are in the opinion to increase the weight while 7 of them don’t feel
increasing it. Most of them are suggesting increase in baggage allowance in
the economy class from 30kg to 35kg.

(7) How do you think the behavior of the Custom officer and the personnel in the
Immigration Dept. is?

(a) EXCELLENT (b) GOOD

(c) AVERAGE (d) POOR

51
 20 18
18
NUMBEROFRESPONSES

16
14
12
10 8
8
6
3
4
1
2
0
EXCELLENT GOOD AVERAGE POOR
OPTIONS
As you can see in the above graph 18 passengers have judged the custom officers
behavior towards them as AVERAGE followed by 8 people who feel they treat them
in a GOOD way and in 3 cases passenger found the behavior to be POOR and
finally 1 passenger felt that the treatment was EXCELLENT.

(8) According to you should there be manual checking of luggage at the security
check?

(a) YES (b) NO

52
 25 23

NUMBEROFRESPONSES 20

15

10
5
5

0
YES NO
OPTIONS
During the security check it becomes necessary for the security personnel’s to check
the luggage manually. This process is bit time consuming but security comes first
that’s why 25 passengers out of 30 feel that manual checking of the luggage is
compulsory at the airport and 5 of them feel the opposite.

(9) In case of any problem, does the airport authority act promptly to check it?

(a) YES (b) NO

53
 25 23

NUMBEROFRESPONSES
20

15

10 7
5

0
YES NO
As per the above graph 3 passengers feel thatOPTIONS
the airport officials deal with
the passengers grievances promptly and solve their problems and rest 7 feel
the authority don’t take care of the problems faced by the passengers during
check-in. It can be interpreted that more than 70 percent of passengers are
satisfied with the reaction time of the authority towards passenger’s
grievances.

(10) From the following airports, which do you consider the best in terms of
services provided during the check-in?

(a) INDIRA GANDHI INTERNATIONAL AIRPORT, New Delhi

(b) CHHATRAPATI SIVAJI INTERNATIONAL AIRPORT, Mumbai
(c) BANGLORE INTERNATIONAL AIRPORT, Bangalore

54
 (d) NETAJI SUBASH CHANDRA BOSE INTERNATIONAL AIRPORT,
Kolkata

25
NUMBEROFRESPONSES

20
14
15

10 8
6
5 2
0
NEW DELHI MUMBAI BANGLORE KOLkATA
OPTIONS
Among the major international airports NETAJI SUBASH CHANDRA BOSE
INTERNATIONAL AIRPORT, Kolkata has been voted the most for providing the
best services during check-in .i.e. 14.BANGALORE INTERNATIONAL AIRPORT,
Bangalore and CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT,
Mumbai are in a close race i.e. 8 & 6 respectively and final in the race is INDIRA
GANDHI INTERNATIONAL AIRPORT, New Delhi voted the best by only 2
passengers.

CONCLUSION

55
With the help of all the information’s gathered, I draw the conclusions that the
“CHECK-IN DEPARTMENT & CUSTOM CLEARANCE” plays a vital role
in the operation department of the AAI. Besides, it also laid a greater emphasis on
the services provided to the passengers and helps in the smooth functioning of the
airport and uninterrupted movement of aircraft thereby satisfying the needs of the
passengers and caters to their requirements.

The major use of studying the check-in formalities is to maintain the count how
many passengers are on board of aircraft and to satisfy Govt. requirements, so that
Govt. records are maintained.

• The check-in process is basically a series of steps through which passengers

have to go when he/she enters the terminal building till he/she boards the
aircraft.

• The check-in formalities at the international terminals also includes a custom

& immigration clearance that is why passengers have to arrive at least before
2 hours of flight time.

• The major requirement before check-in is ticket reservation check & travel
document check(including valid passport, visa & other documents).the study
of check-in process helps in understanding all the services that are rendered
to the passengers and knowing the level of satisfaction level of the passengers.

• AAI has a major role in providing services for a systematic functioning of

airport & movement of aircraft, ensuring safety and security for passengers
& to the airport.

There are some reasons by which AAI is considered as one of the

international assets as well as one of the big promoters of tourism in India.

RECOMMENDATIONS

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AAI being an international asset have developed, expanded and
modernized its operational, terminal, cargo facilities according to the
international standards. It not only focuses on operational and
technical aspect, but also looks towards providing best possible
services to all its customers and brings continuous growth and
improvement and also focus towards safety & security of both the
passengers and airport

• The X-Ray counter at the check-in can be increased in number so as

to handle more passengers.
• Most signboards, displays and visual aids can be installed for better
movements of passengers. This can be also helpful for the foreign
tourists.
• Widening of check-in gates is a better option to avoid rushes.
• Computerized check-in can be done so that passenger can be done so
that passengers can easily get the boarding points.
• Latest and advanced security devices should be installed so as to
avoid manual checking and save time of passengers.

These are some suggestion which can lead to better improvement of

airport structure and it will be the best possible services available to the
passengers and in future development modernized itself as per
international standards.

ANNEXURE

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BIBILOGRAPHY

BOOKS:

• G.C.BERI-“marketing research” Tata McGraw-hill publishing

company.

• CHAND, MOHINDER-“Travel agency management.”

Websites:

• www.google.com

• www.aai.co.in

• www.customs.co.in

• www.igia.co.in

• www.indianairports.com

• www.airindia.com

• www.csri.com

QUESTIONNAIRE
(1) Which airline do you prefer in terms of services provided by them (in check-
in)?

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 (a) KINGFISHER (b) INDIAN

(c) JET AIRWAYS (d) SPICEJET

(2) How do you judge the security check arrangement at Delhi Airport?

(a) EXCELLENT (b) GOOD

(c) AVERAGE (d) POOR

(3) Which stage is most time consuming in the check-in procedure?

(a) X-RAY COUNTER (b) BOARDING PASS

COUNTER

(c) DOCUMENTATION (d) SECURITY CHECK

(4) How do you feel customer care services provided at the airport?

(a) EXCELLENT (b) GOOD

(c) AVERAGE (d) POOR

(5) Should there be an increase in the number of tourist information counters at

the Airport?

(a) YES (b) NO

(6) Should there be any increase in the weight in baggage allowance?

(a) YES (b) NO

(7) How do you think the behaviour of the Custom officer and the personnel in
the Immigration Dept. is?

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 (a) EXCELLENT (b) GOOD

(c) AVERAGE (d) POOR

(8) According to you should there be manual checking of luggage at the security
check?

(a) YES (b) NO

(9) In case of any problem, does the airport authority act promptly to check it?

(a) YES (b) NO

(10) From the following airports, which do you consider the best in terms of
services provided during the check-in?

(a) INDIRA GANDHI INTERNATIONAL AIRPORT, New

Delhi
(b) CHHATRAPATI SIVAJI INTERNATIONAL AIRPORT,
Mumbai
(c) BANGLORE INTERNATIONAL AIRPORT, Bangalore
(d) NETAJI SUBASH CHANDRA BOSE INTERNATIONAL
AIRPORT, Kolkata

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