Airport Sector Report

INDIAN AIRPORT
SECTOR ASSESSMENT
Capital Fortunes Private Limited (May14)
ABSTRACT
Amidst increased participation from private players,
the Indian Airport sector is set to play a crucial role in
the growth of Indian economy. With the new
government in place, Indian Infrastructure sector is set
to get a major thrust. Airport sector is expected to draw
an ever increasing attention of the government. This
report captures the major trends, key stakeholders,
challenges and future opportunities for the Indian
Airport Sector.

Indian Airport Sector Assessment [Type here] Capital Fortune Private Limited

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Contents
1. Overview of the Indian Airport Sector .................................................................................................. 3
1.1. Traffic Trends ................................................................................................................................ 3
1.2. Government Bodies in Airport Sector ........................................................................................... 4
1.2.1. Airport Authority of India (AAI) ............................................................................................. 4
1.2.2. Ministry of Civil Aviation ....................................................................................................... 5
1.3. Regulatory Authorities .................................................................................................................. 5
1.3.1. Airport Economic Regulatory Authority (AERA) .................................................................... 5
1.4. Existing Airports and Airstrips ....................................................................................................... 6
1.5. Greenfield Airports ....................................................................................................................... 6
2. Key Stakeholders in an Airport ............................................................................................................. 8
2.1. Government .................................................................................................................................. 8
2.1.1. Air Traffic Control .................................................................................................................. 8
2.1.2. Tariff Fixation ........................................................................................................................ 9
2.2. Developer ...................................................................................................................................... 9
2.3. Financiers .................................................................................................................................... 10
2.4. Cargo Partners ............................................................................................................................ 11
2.5. Food & Beverage (F&B) Partners ................................................................................................ 12
2.6. Retail and Duty Free Operators .................................................................................................. 12
2.7. Advertising .................................................................................................................................. 14
2.8. Fuel Partner ................................................................................................................................. 14
2.9. Airlines ........................................................................................................................................ 15
3. Revenue Model ................................................................................................................................... 16
4. Privatization ........................................................................................................................................ 19
Karaikal Airport ................................................................................................................................... 20
5. PPP Mode of Development ................................................................................................................. 21
5.1 Benefits of PPP mode of development in Airport Sector ........................................................... 21
5.2 PPPs Success Stories ................................................................................................................... 21
5.3 Constraints in PPP model ............................................................................................................ 22
5.3.1. Supply side constraints ....................................................................................................... 22
5.3.2. Demand side constraints .................................................................................................... 22
5.3.3. Policy Constraints ................................................................................................................ 22
5.3.4. Structural Constraints ......................................................................................................... 23

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6. Challenges Faced by the Airport Sector .............................................................................................. 23
7. Future Opportunities .......................................................................................................................... 25
8. Appendix A: Airport wise traffic of Indian Airports (2012-13) ............................................................ 30
9. Appendix B: Airport Projects under PPP Program .............................................................................. 32
10. Appendix C: Operators of major airports across the world ................................................................ 34
11. Appendix D: Skytrax Global Airport Rankings .................................................................................. 36
12. References .......................................................................................................................................... 39


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1. Overview of the Indian Airport Sector
India is a huge country, supporting the second highest number of people in the world. In an increasingly
globalized economy, air transport is a vital element of the countrys transport infrastructure. Civil Aviation
is a key infrastructure sector that facilitates the growth of business, trade and tourism, with significant
multiplier effects across the economy. The Indian Airport Sector plays a crucial role in the growth of the
country through the last decade. It is now increasingly recognized that aviation, far from being a mere
mode of transportation for an elite group, is crucial for sustainable development of economy and trade &
tourism. In this context, it is vital that airport infrastructure grows in anticipation of the escalating needs
of the air transport industry. The ICAO estimated that $100 spent on air transport produce benefits worth
$325 for the economy and 100 additional jobs in air transport result in 610 new economy wide jobs.

1.1. Traffic Trends
The passenger and cargo traffic in Indian Airports sector has seen a robust growth in the last decade. The
passenger traffic has grown at a CAGR of 14% over the last decade whereas the freight traffic has grown
at a CAGR of 8.3%. However, the air traffic declined in the year 2012-13 as compared to 2011-12. This has
been majorly due to a fall in the economic activity during this period, poor financial health of the domestic
airlines and the closure of Kingfisher Airlines. During the same period, Global passenger traffic increased
by 3.1 per cent compared to the year ending March 2012 with international passenger traffic growing by
4.8 per cent and domestic passenger traffic increasing by 1.6 per cent.

As per the twelfth five year plan, by the year 2016-17, the passenger traffic is expected to grow to about
269 Million (a CAGR of 14%) and the freight traffic is expected to rise to 4.4 MMTPA (a CAGR of 19%). As
per a report by IATA, if Indians begin to travel with the same frequency as Americans, then the years
ahead could see the market boom beyond the two billion mark.
Passengers 2003-04 2011-12 2012-13
International 16,641,449 40,796,403 43,033,830
Domestic 32,138,162 121,509,019 116,367,526
TOTAL 48,779,611 162,305,422 159,401,356
Freight (in Tonnes)
International 693,223 1,467,896 1,406,334
Domestic 375,436 812,091 784,215
TOTAL 1,068,659 2,279,987 2,190,549
Source: Airport Authority of India
This growth has come on the back of strong infrastructure addition in the Airport Sector. This is illustrated
by the below facts:
Scheduled air services available to/from 82 airports (only 50 in early 2000)
Enhanced national and international connectivity - 72 foreign airlines are operating to/from various
destinations
Bilaterals with 104 countries
1356 International flights utilizing 3,26,705 seats per week
3 Indian carriers are operating 990 flights to 35 destinations in 25 countries
North East Connectivity: 87 flt/wk to 286 flt/wk in 5 years (230% increase).

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As per the Twelfth Five year plan, the passenger handling capacity in India has risen to 220 million in FY
2011. During the same period the cargo handling capacity also has risen to 3.3 million MT. This shows that
India currently has an excess capacity both in terms of Passenger and cargo. However, a major portion of
this capacity is concentrated in the metro airports. As increasing amount of Air traffic is coming from non-
metro cities, there is a need to develop Greenfield airports in non-metro cities as well. As per estimates
of Ministry of Civil aviation, the total passenger traffic in India is expected to grow to around 700 million
by the end of 15
th
five year plan.

Forecast of Air
Passenger Traffic
Source: DGCA, MoCA estimates

In spite of the above said growth, India continues to be a small player in the international arena. India has
1 aircraft for every 2.89 million population which is miniscule in comparison to 1.14 million in china, 0.96
of Indonesia, 0.89 in Philippines and 0.63 in Brazil. Chinas domestic traffic is 5 times the size of Indias
despite having a population just 15% larger. The upside potential therefore, remains huge, driven by
strong economic and demographic fundamentals.
1.2. Government Bodies in Airport Sector
1.2.1. Airport Authority of India (AAI)
Airport Authority of India was incorporated in 1995 by merging the erstwhile International Airports
Authority of India and National Airports Authority. AAI is the nodal body responsible for the development
and maintenance of Airport Infrastructure in India. The main functions of AAI are as under:
Design, Development, Operation and Maintenance of international and domestic airports and civil
enclaves
Control and Management of the Indian airspace extending beyond the territorial limits of the country,
as accepted by ICAO
Construction, Modification and Management of passenger terminals
Development and Management of cargo terminals at international and domestic airports
Provision of passenger facilities and information system at the passenger terminals at airports
Expansion and strengthening of operation area, viz. Runways, Aprons, Taxiway etc.
Provision of Communication and Navigation aids, viz. ILS, DVOR, DME, Radar etc.
AAI manages 125 airports, which include 11 International Airport, 08 Customs Airports, 81 Domestic
Airports and 27 Civil Enclaves at Defense airfields. AAI provides air navigation services over 2.8 million
square nautical miles of air space. In addition, AAI provides Air Navigation Services at all civil airports in
the country. Air Navigation Services are also provided by the AAI at 9 other airports that are not managed
by AAI.

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AAI reported a profit after tax of 735 Crore in FY 2012-13. This was lower than 859 Crore which was
reported in FY 2011-12. This was majorly due to the decreased air traffic in both passenger and cargo
segment in the FY 2012-13. However, the revenue in FY 2012-13 grew to 6917 Crore from 5878 Crore
in 2011-12. AAI earned 2104.95 Crore only by leasing of IGI Airport, Delhi ( 1533.16 Crore) and CSI
Airport, Mumbai ( 571.79 Crore). Out of the 125 airports managed by AAI, only 12-13 are profit-making
and rest are loss-making airports, based on the financial results of 2008-09. AAI is maintaining all these
loss-making airports to serve the social obligations of providing nation-wide connectivity including
airports in remote and inaccessible areas especially the North East, hilly, island regions and tourism places.
1.2.2. Ministry of Civil Aviation
The Ministry of Civil Aviation is responsible for formulation of national policies and programs for the
development and regulation of the Civil Aviation sector in the country. It is responsible for the
administration of the Aircraft Act, 1934, Aircraft Rules, 1937 and various other legislations pertaining to
the aviation sector in the country.
This Ministry exercises administrative control over attached and autonomous organizations like:
The Directorate General of Civil Aviation
Bureau of Civil Aviation Security
Indira Gandhi Rashtriya Udan Academy
National Aviation Company of India Limited
Airports Authority of India
Pawan Hans Helicopters Limited
Air India Ltd.
The Commission of Railway Safety, which is responsible for safety in rail travel and operations in
terms of the provisions of the Railways Act, 1989 also comes under the administrative control of
this Ministry.
In pursuance of Policy for Greenfield Airports, the Central Government had accorded in-principle
approval for setting up of a Greenfield airports at Mopa (Goa), Navi Mumbai, Sindhudurg and Shirdi
(Maharashtra), Bijapur, Gulbarga, Hassan, Simoga (Karnataka), Aranmula-Patnanamthitta District, Kannur
(Kerala), Pakyong(Sikkim), Durgapur (West Bengal), Dabra (Madhya Pradesh), Palladi (Rajasthan),
Kushinagar (Uttar Pradesh), Karaikal (Puducherry).

In addition, MoCA is in the process of formulation of Policy for Economic Regulation for airport, in India.
Further MoCA is also in the process of formulation of Hub Policy which will boost the aviation hubbing
in India.
1.3. Regulatory Authorities
1.3.1. Airport Economic Regulatory Authority (AERA)
The Airports Economic Regulatory Authority (AERA) is a statutory body formed in December 2008. The
major functions of the AERA as enshrined in the Airports Economic Regulatory Authority of India Act, 2008
are:
To determine the tariff for the aeronautical services taking into consideration
o The capital expenditure incurred and timely investment in improvement of airport facilities
o The service provided, its quality and other relevant factors
o The cost for improving efficiency

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o Economic and viable operation of major airports
o Revenue received from services other than the aeronautical services
o The concession offered by the Central Government in any agreement or memorandum of
understanding or otherwise
o Any other factor which may be relevant for the purposes of this Act
To determine the amount of the Development Fees in respect of major airports
To determine the amount of the Passengers Service Fee levied
To monitor the set Performance Standards relating to quality, continuity and reliability of service as
may be specified by the Central Government or any authority authorized by it in this behalf

1.4. Existing Airports and Airstrips
At present there are around 449 airports/airstrips in the country. Among these, the AAI owns and
manages 92 airports and 28 civil enclaves at defense airfields and provides air traffic services over the
entire Indian airspace and adjoining oceanic areas.

AAI classifies the Airports as per their utility 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. Some of the major international
airports in India are Mumbai, Delhi, Chennai, Calcutta, Hyderabad, Bengaluru and
Thiruvananthapuram.
2. Custom Airports: These have custom and immigration facilities for limited international
operations by national carriers and for foreign tourist and cargo charter flights. These include
Bangalore, Hyderabad, Ahmedabad, Calicut, Goa, Varanasi, Patna, Agra, Jaipur, Amritsar and
Tiruchirappali
3. Model Airports: These are domestic airports which have minimum runway length of 7500 feet
and adequate terminal capacity to handle Airbus 320 type of aircraft. These can cater to limited
international traffic, if required. These include Lucknow, Bhubaneshwar, Guwahati, Nagpur,
Vadodara, Coimbatore, Imphal and Indore.
4. Other Domestic Airports: All other airports are covered in this category.
5. Civil Enclaves in Defense Airport: There are 28 civil enclaves in Defense airfields. Major civil
airports in India are Srinagar, Leh, Agra, Gwalior, Port Blair.
Most of the traffic is carried by the metro airports. The six major international airports (Delhi, Mumbai,
Chennai, Bengaluru, Kolkata, and Hyderabad) carried 67.6% of the total passenger traffic in 2012-13.
Amongst the non-metro airports, Cochin was the busiest airport carrying almost 5 million passengers in
2012-13. Details of traffic carried by all airports in the year 2012-13 has been provided in Appendix-A.
1.5. Greenfield Airports
In the past, government policy relating to Greenfield airports was restrictive and aimed at protecting the
financial viability of the existing airports. However, the spurt in traffic requires a liberalized approach
towards setting up of Greenfield airports with a view to bridging the growing deficit in airport
infrastructure. Ministry of Civil Aviation released a policy on Greenfield airports in 2011 to expedite the
process.

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Greenfield airports to be set up by AAI would be preferably constructed through Public Private Partnership
(PPP) and such airports would be financed substantially through PPP concessions. However, land for such
airports would have to be provided by AAI. Further, financing gaps, if any, can be bridged through the
Viability Gap Funding scheme, which provides for a capital grant of upto 20% of the project cost. The
concessions for development of Greenfield airports would be awarded through open competitive bidding.
In the north eastern areas where it may not be feasible to follow the PPP route, AAI could set up Greenfield
airports by itself, as may be approved by the Government on a case to case basis.
Apart from AAI, any Private Company or the State Government or a combination of the two, can also set
up a Greenfield Airport. The entity would have to procure a license from the DGCA for the same. In such
a case, the entity would be responsible for the development and operation of the airport. State
Governments cannot enter into any concession agreement with the Airport Company as they do not have
the powers to grant airport concessions as per the provisions of the Aircraft Act, 1934. However, the State
Governments can provide any or all of the following incentives/ assistance to any entity which has
procured a license from DGCA to build an Airport:
Land, concessional or otherwise;
Real estate development rights in and around the airports;
Airport connectivity; rail, road;
Fiscal incentives by way of exemptions from State taxes; and

On any Greenfield airport to be developed under these Policy Guidelines, activities relating to Air Traffic
Services (ATS), security, customs and immigration would be reserved for central government agencies.
While granting a license, DGCA has to keep the following conditions in view
No Greenfield airport would be allowed within an aerial distance of 150 Km of an existing civilian
airport.
In case a Greenfield airport is proposed to be set up within 150 Km of an existing civilian airport, the
impact on the existing airport would be examined. Such cases would be decided by the Government
on a case to case basis.

The government has given an in principle approval to the following airports:

S.NO. STATE CITY APPROVAL YEAR CURRENT STATUS
1. Goa Mopa 2000 Project Pending
2. Maharashtra Navi Mumbai 2007 Qualification Stage
3. Kerala Kannur 2008 Construction Stage
4. Sikkim Paykong - Construction Stage
5.
Karnataka
Gulbarga
2008
Construction Halted
6. Bijapur Project Pending
7. Hassan Project Pending
8. Shimoga Construction Halted
9.
Madhya Pradesh
Sindhudurg
2008
Pre-construction Stage
10. Gwalior Construction Stage
11. West Bengal Barddhaman - Construction Stage
12. Rajasthan Paladi - Construction Stage
13. Uttar Pradesh Kushinagar 2010 Qualification Stage

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14. Pudduchery Karaikal 2011 Construction Stage
Source: Press Information Bureau, GoI

2. Key Stakeholders in an Airport
2.1. Government
The government plays a key role in the operation of an Airport. Right from the conceptualization of an
airport to its actual operation, government is involved during each and every stage of the process.
The role and functions of the Central Government extend to the following matters:
Investment in airport infrastructure
Clearance of Greenfield airport projects: The Ministry of Civil Aviation should try to facilitate the
speedy clearance of projects from different Ministries
Airspace management, safety and security of airports
Bilateral air services agreements, including those involving international cooperation for
modernization and up-gradation of airports
Licensing of airports and ATC personnel
Environmental aspects and removal of obstructions around airports
Approval of aeronautical charges

The State Governments deals with the following aspects:
Acquisition of private land and allotment of government land: In case Government land is allotted by
a State Government for an airport owned by a private party, it may be made available at the same
rate as is charged from other industrial ventures in the State. Government will ensure that legislative
and administrative mechanisms for speedy acquisition of land are devised.
Supply of water and power, and provision of sanitation and sewage services
Provision of surface access through multi-modal linkages
Prevention of environmental pollution
Maintenance of law and order
Protection of airports from encroachments and vandalism.

The Ministry of Civil Aviation will liaise with the State Governments in order to ensure provision of all
these essential services and basic facilities. The State Civil Aviation Secretaries will act as coordinating
officers for single-point liaison with all the State-level departments and authorities.

2.1.1. Air Traffic Control
Primary objective of Air Traffic Control is to prevent collisions between aircraft. The need to safeguard
passengers, crew and aircraft is met by ground based infrastructure, in which air traffic controllers issue
mandatory instructions to pilots. The aim of Air Traffic Control Service is to ensure a safe, orderly and
expeditious flow of air traffic. In order to achieve this objective, the Air Traffic Controller issues clearances
to provide safe separation between aircraft at any given time. Internationally agreed standards and
procedures are followed to accommodate the aircraft movements in a safe and orderly manner.
AAI as Air Navigation Service Provider, is responsible for the provision of Air Traffic Management (ATM)
Services in the designated airspace. Irrespective of who operates the airport, the ATM function rests with
the AAI. AAI has embarked upon ANS infrastructure up-gradation strategy with the objective of ensuring
safety, efficiency, cost-effectiveness of aircraft operations with environmental benefits on a long-term

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and sustainable basis. AAI has drawn the concept of future India Air Navigation (FIAN), and is on the
threshold of introducing Air Traffic Flow Management over busy routes, dedicated helicopter routes,
providing automation systems at 35 non metro control towers, and the use of space based augmentation
system (GAGAN).

2.1.2. Tariff Fixation
In AAI, the tariff for airport charges (Landing, Parking, and Housing) is being fixed on Single Till basis with
the approval of the GoI so far. For the purpose of fixation of tariff, the total revenue and expenditure of
AAI as a whole are taken into consideration (i.e. revenue and expenditure of all AAI airports are clubbed
together and brought under one basket and tariff for the gaps is determined accordingly after taking into
considering reasonable Rate of Return. The Tariff so determined, is charged uniformly to different AAI
airports. Similarly, the tariff in respect of RNFC and TNLC is also levied uniformly at all airports. However,
these guidelines are modified for airports where AAI has entered into a joint venture for the up-gradation
and maintenance of the airport, for eg. DIAL, MIAL etc. Some of the guiding principles kept in mind while
deciding the tariff policy are:
Allow the airport operator to take reasonable Rate of Return on their investment. It adopts Rate of
Return Approach rather than Price Cap or Light Touch Approach
With the arrival of private players in the airport sector in the recent past, fixation of airport-wise tariff
has become a necessity. Thus, it is suggested that henceforth, AAI be allowed to adopt Dual Till
Approach for fixation of airport-wise tariff for major airports, which will facilitate AAI to utilize the
non-traffic revenue generated at these major airports not only for further development of the airport
but also to maintain large number of loss-making airports in the country
All direct costs relating to passengers should be recovered from the passengers directly like PSF, UDF
etc. and indirect costs relating to passengers should be recovered from the airline operators
The Service Quality Norms/Standards should be airport specific and made applicable as mandatory.
In case of failure to meet the requisite norms / standards appropriate penalty may be levied on the
airport operator.

2.2. Developer
The developer of an airport is primarily responsible for the physical construction of the airport. The
responsibilities might include construction Integrated Terminal, ATC complex including control Tower,
Administrative Offices including Internal and External Electrical installations, Electrical Substation
buildings and substation equipment, HVAC system, Plumbing, Fire alarm, Fire-fighting System, CCTV, PA
system, Flight Information Display System, Interior Design, internal and external finishing, Building
Internal Signage including fascia signage, Integrated Building Management system including access
control system, Hydro pneumatic pumping system for the buildings, STP, Landscaping and Rainwater
Harvesting system, etc.
A developer might be involved to varying extent in an airport project as mentioned below:
Engineering, Procurement and Construction In this type of project, the developer is only
responsible for the construction of the airport. The control of the airport is handed over to AAI post
construction. For eg. In Pakyong Airport, Sikkim, Punj Lloyd has been given the contract to build the
airport
Developer holds equity Most of the PPP projects fall under this category. In this type of a project,
the developer holds a certain amount of equity in the SPV which is formed for the purpose of
developing the airport. The developer is given the responsibility of constructing and maintaining the

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airport for a fixed period of time as mentioned in the concession agreement. The developer shares a
fixed share of revenue with the government. There are many variants of this model which can be used
like BOT, DBFOT, BOOT etc. For eg. MIDC has tied up with IRB Infrastructure Developers Ltd. on a BOT
basis to develop the Sindhudurg Airport.
Private Airport This is a relatively new and developing trend. In this type of project, the developer
takes all the responsibilities of constructing and maintaining the airport. The developer only has to
take required clearances from the appropriate authorities to take up an airport project. For eg. Super
Airport Infrastructure Pvt. Ltd. is building Indias first fully private airport in Karaikal, Pudduchery.

Some of the major developers in the Airport space are:

S.No. Country Developer Project
1.
Indian
GMR Infrastructure Ltd. Delhi Airport
2. GVK Mumbai Airport
3. IRB Infrastructure Developers Ltd. Sindhudurg Airport
4. Punj Lloyd Pakyong Airport
5. Super Airport Infrastructure Pvt. Ltd. Karaikal Airport
6. MARG Ltd. Bijapur Airport
7. Regional Airport-Holdings International Ltd. Gulbarga Airport
8.
International
Fraport AG Delhi Airport
9. Changi Airport Group Durgapur Airport
10. Flughafen Zurich AG Bangalore Airport
11. Maytas Infrastructure Ltd. Gulbarga Airport
12. Siemens Bangalore Airport
Source: Primary Research

2.3. Financiers
Airport is a very capital intensive project which requires large initial investment. These projects have a
large element of sunk cost, a very long gestation period and highly uncertain returns on investment based
on several assumptions of traffic growth that may fail to materialize. The Sector would require huge
investments in the years to come to match the increasing traffic. It is anticipated that by 2020 a total of
$30 billion would be required to fund airport infrastructure. In addition up-gradation of Air Navigation
Systems would require another 600 crores.
The level of Government support has decreased over the last decade. The ambitious GAGAN Project
however, due to its strategic importance would be partly funded by the Government. Only strategically
important airports and infrastructure that caters to the underserved areas like North East would be
provided budgetary support. Government budgetary support to the sector would generally be limited to
funding of socially necessary activities, skill development of personnel and strategic functions.
Fortunately, the Ministry has forged powerful models of PPP and Full Private participation to fulfill these
funding needs. During the 12
th
five year plan, AAI would contribute 17,500 Crore towards airport
infrastructure. This will be funded through its internal revenue and GBS. A general policy decision needs
to be taken that the AAI will only invest in projects with demonstrated economic viability and positive rate
of return. Wherever Government compels AAI to invest in non-viable projects for the fulfillment of social

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objectives, the initial capital cost of the project and the recurring annual loss sustained by the AAI on this
account will be reimbursed.
The Airport Sector is on its way to commercial self-sustainability with movement towards city side
development and adoption of profitable financial practices duly regulated by AERA. 100% FDI has been
allowed in the existing airports; FIPB approval is required for any FDI beyond 74%. However, 100% FDI
under automatic route is permissible for Greenfield airports.
2.4. Cargo Partners
Indian Airports handled around 2.19 million tonnes of freight in 2012-13. While cargo carried by air in
India weighs less than 1% of the total cargo exported, it accounts for 35% of the total value of exports.
Better cargo handling facilities lead to enhanced levels of importation, especially of capital goods and
high-value items. The demand for air freight is limited by cost, typically priced 45 times that of road
transport and 1216 times that of sea transport. These values differ from country to country, season to
season and from product to product and for different volumes also.

Source: AAI
The air route of transportation can play a more important role in the future trade policy of the country.
The only aspect which needs to be planned and developed is the infrastructural facilities at the airports
to handle various types of cargo traffic with efficiency and speed. The potential for air-cargo growth in
India can be gauged from the fact that some of the global airports such as Hong Kong, Dubai and Incheon
(Seoul) handle cargo volumes which are much more than at Indian airports. The present operating
parameters (daily throughput, dwell times) at most air-cargo terminals of the country are far from
international best-practices. Some of the policy reforms which are proposed in this area are:
Special attention needs to be given to the speedy handling of cargo and reducing its dwell time. The
objective is to reduce dwell time of exports from the present level of 4 days to 12 hours, and of imports

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for the present level of 4 weeks to 24 hours to bring us in line with internationally achieved norms.
Cargo clearance should be on 24-hour basis
Infrastructure relating to cargo handling like satellite freight cities with multimodal transport, cargo
terminals, cold storage, automatic storage and retrieval systems, mechanized transportation of cargo,
computerization and automation, etc., will be set up on top priority basis. Such facilities have to come
up at smaller places too
The Electronic Data Interchange systems will be developed and linked amongst all stake-holders in
the trade.
Given its geographic location, India can aspire to become an international cargo hub. To begin with, India
needs to facilitate trans-shipment of cargo to and from our neighboring countries, many of whom do not
have regular air services to key markets in Europe and America. Some of the major airlines providing cargo
services in India are:
International: Air France, Air China, AeroLogic, Blue Dart, Federal Express, United Parcel Service,
Lufthansa Airlines, Qatar Airlines
Domestic: Go Air, Indigo, Spice Jet
Apart from these, the airports have tied up with various companies to handle cargo operations on the
ground. Some of the major players in this area are:
Bidvest
Menzies
2.5. Food & Beverage (F&B) Partners
In-flight catering forms an important part of the overall experience of a flight journey. It is an essential
component of an airlines marketing strategy, especially in view of the stiff airline competition. Airlines
insist on menus that follow specific safety standards and local availability of ingredients, as well as caterers
complying with HACCP (Hazard Analysis and Critical Control Points) / International Hygiene codes. With
the advent of low cost carriers, in-fl ight catering which was earlier dominated by the fi ve-star hospitality
players was thrown open to fast food chains and FMCG players. Some of the major F&B service providers
at Indian airports are:
EIH Ltd. (Oberoi Flight Services)
Sky gourment Catering Pvt. Ltd.
Ambassador Skychef
Tajsats Air Catering
LSG Sky chefs
HMSHost Services India Pvt Ltd
Caf Coffee Day
2.6. Retail and Duty Free Operators
The worldwide airport duty free market was worth around USD23 billion in 2010 (source: Generation
Research). CAPA estimates the value of airport-based duty free sales in India in 2010/11 at USD215 million,
or less than 1% of the total, yet India accounts for around 3% of global airport passenger traffic. Clearly,
retailing at Indian airports is lagging the rest of the world. The growth of retail sales at the end of the
decade has been spectacular. This has been driven by the introduction of private capital for airport
development and operations, the building of brand new airports plus terminal revamps, and more

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international airport operators and duty free retailers entering the market. Between FY2006 (when
Delhi and Mumbai were privatized) and FY2011 passenger numbers grew by 97%, but non-aeronautical
revenue increased by 340%, of which retail was an important driver component. Indian airports have
earmarked a large portion of the airport area for retail activities. The recently opened T2 terminal at
Mumbai's Chhatrapati Shivaji International Airport for instance, has about 700,000 sq. ft. area - the size
of over 10 soccer fields - dedicated to retail, food and beverage, lounge and travel services. Similarly, the
retail space in Delhi's T3 terminal is spread over 290,000 sq. ft.

Annual Estimated Duty Free Spend
at Indian Airports FY2011
Source: CAPA Research

However, when placed in a global context, there is quite clearly significant room for further growth. Dubai
Duty Free reported sales of USD1.46 billion from its single airport operation in 2011, while revenue across
all Chinese airports combined is estimated at USD1.9 billion.
Liquor is the leading duty free category in India, accounting for 63% of sales (source: CAPA), compared
with 17% globally (source: Generation Research). Apart from liquor, many global brands have set up duty
free shops at Indian airports. Some of the major brands include RayBan, D&G, Prada, Emporio Armani,
Nike, Swarovski, Apple, Sony etc. Though the rent per square foot is higher for the stores at airport, but
the returns per square foot are also higher compared to the stores which are present in cities. For Croma,
an Indian electronics retail store, the annualized realization is close to 1.2 Lakh per sq. ft. at airports,
while in the cities it is close to 30,000 to 40,000 per sq. ft.

Indian Duty Free Sales by
Category: FY2011
*Supermarket refers primarily to Cochin, which sells
grocery items in the arrivals area.
Source: CAPA Research

14
Positive air traffic forecasts, per capita incomes in India expected to more than triple over the next 10
years and increase in privatization of airports raise the prospect of rapid growth in the Airports retail
sector. However, whether the rest of the airports in the country which are operated by AAI can achieve
their unconstrained potential is subject to a number of factors such as the ability to introduce a stronger
commercial focus at the management level of the airports and construction of sufficient capacity to meet
demand. The AAIs track record in retail development lags the PPP airports, with average duty free spend
per passenger of USD3.05, compared with USD7.08 at PPP airports. The downside risks are higher for the
non-metro airports than Chennai and Kolkata, but even here we would need to see a much more
aggressive commercial approach by the AAI. However if the AAI is able to leverage this potential it stands
to be one of the greatest beneficiaries of the travel retail phenomenon. The net income generated from
retail spend could transform the financial status the authority and help to fund its massive capex
requirements. This can in turn reduce the pressure on increase of aeronautical charges and improve the
profitability of airlines.
2.7. Advertising
Utilizing the airport space for commercial advertising has become an important source of revenue for
the major metro airports. Some of the major advertising agencies in India are:
JCDecaux
Times Innovative Media Limited
Laqshya Media Pvt Ltd
TDI International India P Limited
Some of the advertising products offered at the IGI Airport, Delhi include New Product Launches,
Consumer Engagement, Branding in dynamic screens, Innovative display, Sampling and exhibitions,
Visibility in flyers etc. Delhi airport charges 150,000 per day for setting up a counter.
2.8. Fuel Partner
A major difficulty being faced by airlines is the high cost of Aviation Turbine Fuel (ATF), which is further
aggravated by taxes. Viewed in inter-modal context, it is desirable to rationalize ATF pricing and to review
the tax structure so that Airline operation becomes viable. The cost of ATF constitutes 4050 per cent of
the total operating cost and thus is a formidable challenge for the financial health of airlines. This has
been a long standing issue that requires an immediate resolution. ATF prices in India are distorted because
it is subjected to a multitude of cascading taxes by different government entities despite being an input
fuel (similar to coal and gas); it is subjected to sales tax as high as 30 per cent. It is nearly 60 per cent
costlier than competing hubs like Dubai, Singapore and Kuala Lumpur and hurts Indias competitiveness.
Either ATF should be included in unified Goods and Services Tax or ATF should be accorded the status of
Declared Good that carries lower and uniform tax rate. The comparison of ATF prices in India with
competing hubs has been detailed below:

Location Price/Kiloliters (USD)
India 1,400
Singapore 825
Bangkok 880
Kuala Lumpur 810
Dubai 840
Source: Twelfth Five Year Plan


15
Major providers of aviation fuel in India are:
IndianOil Aviation
Bharat Petroleum
Hindustan Petroleum
Reliance Industries Limited
The total ATF consumed in India in 2012-13 stood at 5268 Thousand Tonnes. IndianOil Aviation has a
61.8% percent market share in the aviation fuel market. Delhi is the biggest consumer of ATF with an
annual consumption of 1462 Thousand Tonnes in 2012-13. Some of the major airline operators like
SpiceJet, Kingfisher Airlines, InterGlobe Aviation, Go Airlines and Air India have been given the
permission to import ATF as actual user on actual use basis.
2.9. Airlines
Airlines form the crux of any airport. Revenues from scheduled airline operators form the biggest chunk
of the revenue from the civil aviation sector. However, the airlines industry has been going through
turbulent times facing multiple headwinds. Kingfisher airlines have been grounded since 2013 and Air
India is also having a tough time in sustaining itself.

Market share for the 6
Major Indian Airlines

Source: DGCA

However, the underlying fundamentals remain strong and promise a strong growth in the aviation sector.
Some of the key growth drivers which can influence future demand are:
Rising domestic Gross Domestic Product (GDP) - Growth rate of the economy has been steadily rising.
For instance, in the period 1990-91 to 2003-04, the CAGR of Indias GDP works out to 5.7% which then
rose to 8.6% during 2004-05 to 2010-11
Expanding middle-income group - NCAER analysis reveals that the middle income group population
in 2010 stood at 160 million individuals i.e. 13.3% of the total population, which is expected to rise to
547 million in 2025 (i.e. 37.2% of the total population)
Demographic dividend - 62% of the population is in the working age group of 15-60 years and this
proportion is set to increase in future indicating a larger employee base, greater business travel and
greater economic activity
Rising urban population - Mckinsey Global Institutes projections state that Indias urban population
will be 590 million by 2030 i.e. about 40 percent of the total population of India. The number of million

16
plus cities will increase to 68 by 2030 of which 13 cities will have more than 4 million and six cities will
have more than 10 million persons.
Significant market developments - Low Cost Carrier (LCC) model which made air travel affordable for
common man got established firmly in the domestic market since 2004. LCCs along with the LCC brand
of Full Service Carriers (FSCs) constituted 63.3% of the market share in 2009. The domestic traffic is
rapidly shifting towards the LCC model. Market sources suggest that this has crossed 67% during 2011-
12. Also, the LCCs are reported to have displayed

Anticipating significant growth in traffic, most Indian carriers have placed orders to augment their aircraft
fleet. According to an estimate, airlines in India are expected to add around 370 aircrafts worth 150,000
crores to their fleet by 2017. Fleet expansion at this scale would require airlines to explore multiple
funding options including capital markets, long-term borrowings and leasing, and so on.
3. Revenue Model
The revenue sources of an airport can be divided under the following two sources:

1. Aeronautical Revenues
Aeronautical revenue basically comprises charges levied on airlines for conducting operations at an
airport. These comprise of the following components:

Types of
Tariff
Air Navigation Services
Route Navigation
Facility Charges (RNFC)
Terminal Navigational
Landing Charges (TNLC)
Airport Services
Landing Charges
Parking & Housing
Charges
Fuel Throughput
Charges
Passenger Service Fee
(Security)
Other Charges
Passenger Service Fee
User Development Fee
Taxes
All these charges are
subject to levy of
Service Tax as per
applicable rates

17

Most of these charges vary with the nature of airport (Domestic, International or civil), type of city (Metro
or Non-metro), type of aircraft and time of the day. Some of them have been defined below:
i. User Development Fee - Airports levy User Development Fee (UDF) from embarking passengers
to fund viability gap. Airports have been authorized by the Government to levy UDF from
embarking passengers at Delhi and Mumbai airports to fund modernization of Delhi and Mumbai
airports.
ii. Passenger Service Fee - Passenger Service Fees (PSF) is levied to meet the expenditure on airport
security and passenger facilities at the airports and it is not utilized to fund new development /
up-gradation of airports.
iii. Fuel Throughput Charges - Any service provided for supplying fuel to the aircraft at an airport is
an aeronautical service and the tariff for such aeronautical service at a major airport is termed as
Fuel Throughput Charges. It is to be determined by the Authority after taking in to consideration
various factors as provided under Section 13 1 (a).

The airport (aeronautical) charges levied by the Indian airports are reportedly stated to be the second
highest amongst the Asian and Gulf countries, after Hong Kong. For the year 2012-13, AAI reported the
below revenue from these fee:

Particular 2012-13 (In Crores) 2011-12 (In Crores)
RNFC 1796.95 1803.79
Landing Fees 421.84 409.38
Parking & Housing Fees 10.44 9.90
TNLC 290.69 315.54
Passenger Service Fees 703.26 709.53
User Development Fees 176.91 174.12

The tariff collecting agency differs from airport to airport depending on the type of airport. The following
table details who collects the various type of tariffs:

ANS Services Airport Services
Airport RNFC TNLC L PH PSF
UDF (If
applicable)
PAYABLE TO
(A) INTERNATIONAL AIRPORTS
Delhi (DIAL) AAI AAI DIAL DIAL DIAL DIAL
Mumbai (MIAL) AAI AAI MIAL MIAL MIAL MIAL
Chennai, Trivandrum & Kolkata AAI AAI AAI AAI AAI AAI
Bangalore (BIAL) AAI AAI BIAL BIAL BIAL BIAL
Hyderabad (HIAL) AAI AAI HIAL HIAL HIAL HIAL
Goa (Civil Enclave) AAI AAI Defense AAI AAI AAI
Cochin (CIAL) AAI AAI CIAL CIAL CIAL CIAL
Nagpur AAI - MIPL MIPL MIPL MIPL


18
(B) DOMESTIC AIRPORT AAI - AAI AAI AAI AAI

(C) CIVIL ENCLAVES AAI AAI Defense AAI AAI AAI
Source: AAI

2. Non- Aeronautical Revenues
The non-aeronautical revenues come from activities that are undertaken on top of this core business,
such as retail, parking, other concessions and rentals.
In FY2006, the last year in which all metro airports were operated by the AAI, non-aeronautical activities
generated just 15.1% of total revenue, compared with around 50% or more being achieved by
commercially driven airports in other parts of the world. However, in the next five years, total non-
aeronautical revenue generated across all airports in the country (excluding Cochin) has grown by more
than 340% from INR4.9 billion to INR21.6 billion. The vast majority of this growth (91%) has been driven
by the four metro PPP airports at Delhi, Mumbai, Bangalore and Hyderabad.
Indian Airports Non-
Aeronautical Revenue:
FY2003 to FY2011
Source: CAPA Study

All of the PPP airports have grown their non-aeronautical revenues to at least 35% of total revenue, and
more than 45% in the case of Delhi and Hyderabad airports. However, in the case of the AAI it has risen
by less than a couple of percentage points over the last five years to reach just 17%. There exists huge but
unrealized potential for non-aeronautical revenue growth at the AAI airports, particularly at Chennai and
Kolkata. As per the 2012-13 balance sheet of AAI following were the non-aeronautical revenues:
Particular 2012-13 (In Crores) 2011-12 (In Crores)
Public admission fees 19.64 17.58
Trading Concessions 522.71 454.94
Rent & Services 300.87 269.88
Car Parking 57.26 50.78
Total 900.48 793.18
% of Total Revenue 13.01 13.49
Source: AAI Balance Sheet
Any airports revenue model can be categorized under the following two categories. An airport might use
these two models in their pure form or a combination of the two.

19
1. Single Till
Under the single till principle airport activities (aeronautical and commercial) are taken into consideration
to determine the level of airport charges. Application of the single till is a clear recognition that airlines,
and the passengers they deliver to airports, are a key factor in the ability to develop commercial revenues
at an airport. IATA strongly supports the single till principle under which airports commercial revenues
are used to offset the charges cost base. Some of the arguments given for adopting single till approach
are:
Single till is an acknowledgment of the symbiotic and essential relationship between airports and
airline users.
Lower fares as result of lower charges increases the attractiveness and competitiveness of airports
Airports are built specifically for aviation purposes and priority must be given to airline activity and
passenger facilitation.
Eliminates the need for difficult detailed cost and asset allocation between aeronautical and
commercial tills.
Dual till can incentivize airports to invest in potentially higher-return commercial activity rather than
essential aeronautical infrastructure.

2. Double Till
Only aeronautical activities are taken into consideration under the dual till principle. Airport charges
derived using the single till approach are therefore likely to be lower than they would under a dual till
because of the sharing of profits generated by commercial activities. Airports and their investors,
particularly with privatizations, are increasingly aware that their commercial revenue profits are
significantly enhanced through application of the dual till.
In AAI, the tariff for airport charges (Landing, Parking, and Housing) is being fixed on Single Till basis with
the approval of the GoI so far. For the purpose of fixation of tariff, the total revenue and expenditure of
AAI as a whole are taken into consideration (i.e. revenue and expenditure of all AAI airports are
clubbed together and brought under one basket and tariff for the gaps is determined accordingly
after taking into considering reasonable Rate of Return. The Tariff so determined, is charged
uniformly to different AAI airports. Similarly, the tariff in respect of RNFC and TNLC is also levied
uniformly at all airports.
4. Privatization
The Civil Aviation services have expanded rapidly with the opening up of domestic skies to private carriers
in the second half of the Tenth Plan through PPP investment in the airport infrastructure. The Private
sector has played an unprecedented role in the area of airport development. Five international airport
projects were successfully completed through the publicprivate partnership (PPP) mode, viz. Greenfield
development of Hyderabad and Bengaluru international airports and modernization of Kochi, Delhi and
Mumbai international airports. The Delhi, Mumbai, Bengaluru, Hyderabad and Cochin now have airports
that compare very well internationally.
The airports run by leading private operators GMR and GVK, especially those in Delhi and Mumbai, are
turning out to be cash cows for the government. The hefty revenues, the Airports Authority of India (AAI)
earns from these companies is helping the government fund its ambitious plan of modernizing airports
across the country. Also, the revenue shared by these operators has given government the headroom to
concentrate on supporting the ailing state-owned airline, Air India. Now, the limited budgetary resources

20
are not required to financially support AAI. In 2012-13, as its revenue share from GMR-led Delhi
International Airport Ltd, which runs the capital's airport, and the GVK group, the operator of the Mumbai
airport, AAI received 2104.95 Crores - the most in a financial year since these airports were privatized.
This accounts for around 30% of the total revenue of AAI. AAI invested 2,325 crore and 2,015 crore in
modernizing the airports in Kolkata and Chennai, respectively. By the numbers, one of the two could have
been fully financed by revenue shared together by the Delhi and Mumbai airports.

Source: Business Standard
Total investment made by private airport operators in the 11th five year plan was to the tune of 30,000
crore. For the 12
th
year plan this contribution is likely to increase further.
Investor Investment Category Amount (in Crores)
AAI Airport Projects 17,500
Private Investments By Airport Operator 40,000
By Others (Concessionaires,
Third Party and so on.)
10,000
Total 67,500
Source: 12
th
Five Year Plan
The government has undertaken various reforms to encourage private sector participation in the airport
sector.
100% FDI has been allowed in the existing airports; FIPB approval is required for any FDI beyond
74%
100% FDI under automatic route is permissible for Greenfield airports
Private companies have been allowed to develop Greenfield airports after securing proper
approvals from DGCA
100% equity ownership by Non Resident Indians (NRIs) is permitted
100% tax exemption for airport projects for a period of 10 years
A comprehensive Civil Aviation Policy is in the process of finalization covering different areas of the
aviation sector. India has entered into bilateral Air Services Agreement (ASA) with 104 countries.
Karaikal Airport
Karaikal Airport in Puducherry is being privately developed by Super Airport Infrastructure Pvt. Ltd. It will
be Indias first fully private airport. The total project cost is estimated to be 35.34 Crores and will be
spread across 562.05 acres. The developer has received the necessary approvals from Ministry of Civil
Aviation and the Puducherry govt. Approximately 300 acres of land has been purchased and registered

21
and for 119 acres approximately 60% value has been paid in advance. The airport is under construction
stage and is expected to be completed by April 2015.
5. PPP Mode of Development
In India, due to policy changes and reforms, Public Private Partnerships (PPPs) have increasingly become
the preferred mode for construction and operation of airport infrastructure. Private sector is presently
actively involved in airlines and airports and their contribution are expected to rise substantially in the
coming years. PPP offers a distinct possibility for increasing total investments by using a limited amount
of public resources to leverage a much larger amount of private investment. Such PPPs accordingly could
also increase economic efficiency and lower the capital requirement, provided that regulatory
mechanisms are adequate. PPPs can be undertaken through a range of alternatives such as BOT, BOOT
etc., with the Model Concession Agreement (MCA) being used to provide a stable regulatory and policy
framework. The MCA regulates the PPP contracts by defining the rights and obligation of all parties
concerned. In case a project is not viable due to either long gestation periods or inadequate returns, the
government is committed to provide up to 40% funding by way of grants in some cases, called viability
gap funding. The government has a non-interference approach on the commercial matters of the aviation
sector. However in the future airports, where the competition is limited will come soon under the purview
of AERA. With the number of PPP airports steadily increasing in India, the need of a regulator is felt
necessary. The government on its part is continuing to provide a policy framework for the growth of the
availability and accessibility of air travel.

5.1 Benefits of PPP mode of development in Airport Sector
PPP mode of development offers some specific advantages for the airport sector:
As airports is a very capital intensive sector, it is very difficult for the government to provide the
amount of funds required to develop the airport infrastructure which can cater to countrys future
needs
These projects have a large element of sunk cost, a very long gestation period and highly uncertain
returns on investment based. Due to these reasons very few private players are ready to take up these
projects on their own
Airport projects involve acquisition of large amounts of land. Acquiring such large amounts of land on
their own can be tough for private companies. Government can contribute to these projects by
providing land to the private players
Private developers might not find developing airports in Tier 2/Tier 3 profitably viable. However, these
airports are important for the inclusive development of the country. Thus, government has to provide
enough incentives to the private players to develop Greenfield airports in these cities
Government can exploit the expertise of global companies and adopt international best practices to
build state of the art infrastructure. Most of the projects taken up so far in PPP mode have included a
foreign partner.
5.2 PPPs Success Stories
Cochin International Airport
Cochin International Airport was the first airport in India to be built in the joint sector with public-
private participation. An innovative financial structure involving public deposits for non-resident
Keralites was conceived to kick-start the project. The total cost of construction was about 283 crore.
Hyderabad International Airport

22
The consortium of GMR Infrastructure Limited and Malaysia Airports Holdings Berhad was selected
to develop Greenfield international airport at Shamshabad near Hyderabad. The airport site measures
about 5400 acres and is expected to have an ultimate handling capacity of 40 million passengers per
annum equipped to handle large aircraft, including the Airbus 380. The total cost of the project is
2,370 crore.
Mumbai International Airport
Mumbai International Airport Limited, a consortium of GVK Industries Ltd and Airports Company
South Africa was entrusted the project of modernizing the Mumbai Airport in February 2006. The
Mumbai International Airport caters to 40 million passengers per year and one million metric tonne
of cargo per year.
Delhi International Airport
Fraport, Airports Authority of India, Eraman Malaysia and GMR Infrastructure have entered into a
joint venture to upgrade the Delhi International Airport. The contract was given on a BoT basis with a
35 year concession period. Two modernized terminals along with a brand new terminal, a new runway
of more than 4400 m is part of the concession contract. Delhi Airport would have 500 check-in
counters, 200 aerobridges, 150 immigration counters and the capacity to handle over 100 million
passengers a year after the completion of the project.

A complete list of airport projects which are being executed under the PPP mode has been included in
Appendix B.

5.3 Constraints in PPP model
5.3.1. Supply side constraints
Long Term Funds: The Infrastructure projects which are executed on PPP in Airport Sector are with a
concession period of 30 years are more. The Project development takes around 24 to 36 months.
Considerable revenue generation takes place only in the years 10 to 20. But the Financial institutions
lending horizon is between 8 to 12 years due to average maturity of the deposits or the borrowed amount.
This gap needs to be addressed on an urgent basis.

5.3.2. Demand side constraints
Shelf of Bankable Projects: Shelf of Bankable Projects should be prepared on a continuous basis. These
should be bidded out as per the demand, risk appetite of the developers, present market scenario. These
shelves of Bankable Projects should be kept in the website and intimated to the prospective developers.
Depending on the number of hits or enquiries or interests projects may be bidded out. Recently some of
the bids called in the airport sector has not elicited any response.

5.3.3. Policy Constraints
Standard Documentation - Bidding documents like Request for Qualification (RFQ), Request for
Proposal (RFP), Model Concession Agreement (MCA), and various Legal Documents should be
standardized.
Empanelment of Transaction Advisors - Certain sectors like Road sector, Tourism Sector, Urban
Infrastructure sector have empanelled Transaction Advisors with core competency in that particular
sector. This may be done in the airport sector also. This may reduce the time in selecting the
Transaction Advisors; it may catalyze consultants to become sector specific experts. These TAs may
be taken on nomination basis for initial handholding purposes up to a limit of certain amount. The

23
present TAs empanelled with DEA can be used only to the projects whose cost is up to Rs 250 cr. The
TAs are also general in nature and not sector specific.
Land Acquisition and R&R Policy - There is lot of criticism that more land is acquired than the required
for the project. There is also lot of criticism that the amount paid as compensation is not adequate.
There should be proper and comprehensive guidelines in respect of how much land is required for a
particular airport and the way to pay the compensation. The project affected people should be made
as partners in the project. The guidelines also should include how to handle the issues in case land
acquisition involves religious structures.
Single window approval - All the required approvals for the developing an airport should be through
one government agency. Since one approval is linked to other approvals, the entire chain gets delayed
due to delay in one approval. Dedicated officer for the airport should be identified from the
government to make the entire process smooth.

5.3.4. Structural Constraints
Integration of the Airport with Main City - The major airports in India are mostly at considerable
distance from the city centre. Sometimes to connect to the other end of the city, the distance is as
high as 50 to 60 kms. One of the major challenges at present for certain airports like Hyderabad
International Airport is integration with the main city. The airport should be seamlessly integrated
with the important areas of the main city with dedicated rail, roads, Buses, Taxis, autos. The
connecting infrastructure should be made available before the airport comes into operation. Delhi
Airport is setting an example for rest of the airports by connecting Delhi Metro with Delhi Airport
seamlessly. Passengers can check in with and without baggage at various designated stations of the
dedicated Delhi Metro Line. Similarly a high speed rail link is being planned to connect the Bangalore
Main City to the Bangalore International Airport. There will be airport check in counter in the city
itself.
Capacity Building - PPP being a new concept, there should be a mechanism for continuous up
gradation of skills. Various cadres of officers should be trained in all aspects of the PPP Projects. There
should be lot of sharing of information about both the successful models as well as failed models.
Repository of information should be built continuously. Guiding materials, tool kits should be made
available to the participants. Lead Financing Institutions and Bankers should be involved in the
capacity building exercise.
6. Challenges Faced by the Airport Sector
Civil aviation in India is expected to open up a lot of new avenues in aerospace services in the next ten
years. However the constraints are far too many and need to be addressed urgently to enable the smooth
growth of the sector. Some of the issues / constrains are elaborated below:

Financial Attractiveness of airports in Tier II/III towns
o Airport projects are capital intensive with long gestation periods.
o There is much higher certainty of returns from airports in metros/large cities, than from
smaller cities/towns even though the capital cost is extremely different
o It is therefore easier to attract private sector players and also secure financial closure for the
larger projects but the countrys need is now shifting towards smaller airports
Land acquisition
o Airports require significant land; which is complex and time consuming to acquire

24
o Need for rehabilitation and proper compensation for the stakeholders displaced have been a
major factor behind the land acquisition issues
o The coordination between administrative departments of the state and central government
agencies plays a major role in the land acquisition process
Environmental issues
o There is an overall increase in concern about environmental issues. However, compliance can
be a time consuming process
o A lot of the projects are stuck due to pending environmental clearance
Financial feasibility
o Several of the airports in the country are making operational loss, putting a drain on resources
o We need to find ways of addressing this issue
High Airport Charges
o The airport (aeronautical) charges levied by the Indian airports are reportedly stated to be
the second highest amongst the Asian and Gulf countries, after Hong Kong.

Airport charges
levied in various
countries
Source: Deloitte Report on
Indian Aviation sector

o Non-aeronautical revenue stream has not yet been fully tapped by the Indian aviation
industry. Globally non aeronautical revenues contribute 50 to 70 percent of the total airport
revenues, whereas in India these contribute to a mere 20 percent of total revenues. With the
proportion of non-aeronautical revenue being very low, the airport operators are forced to
levy higher aeronautical related charges on airlines.

Closure of old airports
o With the commissioning of the new private airports at (BIAL) Bengaluru and (HIAL)
Hyderabad, the old airports at HAL and Begumpet respectively had to be decommissioned
o There would be a huge wastage of the existing infrastructure and if the infrastructure is not
utilised for aviation related or ancillary activities, it would imply a colossal waste of public
money.

Safety and security
o The Central Industrial Security Force, a paramilitary organization is in charge of airport
security under the regulatory frame work and instructions of the Bureau of Civil Aviation
Security. CISF formed an Airport Security Group, which is dedicated to protect Indian airports.

25
o Given the high intensity serial bombings witnessed across several parts of the country in the
past few months, there is a need to review and upgrade the nature of security and safety
measures provided at the countrys airports to mitigate against any drastic measures planned
against Indian aviation sector by any form of terrorism
o Potential risks associated with air cargo security include introduction of explosive devices in
cargo placed aboard aircraft; shipment of undeclared or undetected hazardous materials
aboard aircraft; cargo crime including theft and smuggling; and aircraft hijackings and
sabotage by individuals with access to aircraft.

7. Future Opportunities
The Indian aviation sector has witnessed outstanding growth amid fears of a global slowdown. The Indian
aviation growth trend has resulted in many lucrative business opportunities for players in the aviation
industry. Considering the traffic projections for passenger and cargo traffic in India, these opportunities
are likely to attract more Indian and foreign players in the airport market. As per the 12
th
five year plan,
India would require a total of 180 functional airports in the next 10 years to fulfill the demand.

Forecasted Passenger
Traffic of Greenfield
and other Airports
Source: MoCA Analysis
1. Corporatization of AAI
Given the increasing complexity of the AAIs role and the need to enhance organizational capabilities,
create flexible decision making, enhance financial viability and thereby respond more efficaciously to
emerging market challenges, it is desirable that AAI move towards a corporate structure in the near
future
There are several opportunities for improvement in the financial performance of smaller airports
(existing and planned). For instance:
o Improved development and use of retail opportunities at the airports as witnessed in several
of Indias newer airports. This could act as an attraction for the airport and add another
revenue stream to them
o Joint initiatives with tourism players (government and private) to create packages and
promote a destination
o Increasing the attractiveness of an airport for an operator by factoring that into the
development plan, creating incentives for usage
o Working with the state governments and other local stakeholders to create schemes and
enhance usage of the airport
Addressing these issues will require strengthening the marketing capabilities at AAI. The capabilities
may be built afresh, or developed through private partnerships. Outsourcing options may also be
assessed as needed.

2. Greenfield Airports

26
Government has planned to set up Greenfield airports at various parts of the country. The Greenfield
projects at Bangalore and Hyderabad have been completed and Goa, Navi Mumbai, Greater Noida
and Kannur are being considered at present for development
Introduction of Greenfield Airport Policy by Govt. of India, helped in attracting a large amount of
investment from private sector under PPP route. This contributed to almost 70% of total investment
of 45, 000 crores made in airport development in the country during the last 5 years. It has been
estimated that cost of creating one MPPA capacity in terms of Greenfield airports ranges from 275
- 300 crores at 2011 prices.
Low cost Airports - Various State Governments have identified nearly 25 Greenfield or unutilized
airport projects in a bid to encourage regional airlines and to provide air links to small cities and towns.
These are planned in tier-II or tier-III cities, and would be in addition to the Ministry of Civil Aviations
ambitious modernization program for 35 non-metro airports. The investment in such an airport could
range from 40 crore to 100 crore
To improve the connectivity of the North eastern part of the country, a large number Greenfield
projects are planned:
o Tezu, Arunachal Pradesh
o Pakyong Airport, Sikkim
o Itanagar, Arunachal Pradesh
o Agartala, Tripura
o Imphal, Manipur

3. Better Utilization of existing infrastructure
Some airports like Kota and Rajkot are located right next or in the middle of urban townships. There
is no possibility to acquire additional land in their vicinity for their up-gradation for any worthwhile
aviation activities. It will be prudent for AAI to offer those airports which have useful land parcels to
State Government for their further use and obtain land away from the city for another Greenfield
airport, in form of barter exchange deal
The Government plans to improve the conditions of the existing airports across the country via PPP
route. The existing infrastructure at these airports is poor, characterized by inadequate parking space,
insufficient terminal capacity, poor air traffic control systems and lack of facilities for passengers
Ministry of Civil Aviation has proposed development of 35 non-metro airports, keeping in view the
potential for traffic, tourism, business etc. The Ministry has proposed the development of these
airports in three phases as follows:
i. Phase-I (10 airports): Ahmedabad, Amritsar, Guwahati, Jaipur, Udaipur, Trivandrum, Lucknow,
Goa, Madurai and Mangalore.
ii. Phase-II (15 airports): Agati, Aurangabad, Khajuraho, Rajkot, Vadodara, Bhopal, Indore, Nagpur,
Vishakhapatnam, Trichy, Bhubaneswar, Coimbatore, Patna, Port Blair, Varanasi
iii. Phase-III (10 airports): Agra, Chandigarh, Dimapur, Jammu, Pune, Agartala, Dehradun, Imphal,
Ranchi and Raipur. Additional airports will be taken up for development on need basis.
AAI has 24 non-operational airports. AAI is planning to identify non-operational airports that could be
put into use to provide better air connectivity in the country. A list of airports with suggested mode
of development is illustrated below:
i. Entirely by AAI
Airports: Jalagaon, Akola, Cuddapah, Gondia
ii. Funding by Central Government/ State Government/ NEC
Airports: Pakyong (new), Tezu, Daparizo, Itanagar (new), Chaitu (new), Kishangarh
(new)

27
iii. By Public Private Partnership (PPP) model
Airports: Pantnagar, Jharsuguda, Keshod, Vellore, Warrangal, Bhatinda

4. Cargo
There is a significant untapped potential for air-cargo in India. An indication of the same can be gauged
from the fact that the total air-cargo volume of 2.3 million MT handled in FY-11 by all Indian airports
put together is less than that handled by individual airports like Hong Kong, Memphis, Shanghai,
Incheon, Anchorage and Paris.
Congestion and delays in air cargo terminals in some of the major metro airports have become
chronic. Indias image as a reliable supplier in international markets is crucially dependent upon the
performance levels of air cargo terminals in the country. Investments need to be made for up
gradation/expansion of capacity and modernization of processes/systems to cater to the growing
requirements. This needs immediate and effective intervention
MoCA forecasts that the Total Cargo throughput at Indian airports is expected to grow 7.6 times in
the next 20 years (CAGR of 11.2). Domestic Cargo throughput is expected to grow 7.8 times in the
next 20 years (CAGR of 10.4%). International Cargo throughput is expected to grow 7.5 times in the
next 20 years (CAGR of 11.7%).
Forecast of Air Freight Traffic throughput at Indian Airports

Source: MoCA
AAI will consider the development of Cargo Terminals at Pune, Sri Nagar, Guwahati, Chandigarh, Surat
and Trichy in next 5 to 10 years. Recently, Cargo Terminal was operationalized at Mangalore for
International Cargo operations and at Port Blair for Domestic cargo operation with the assistance of
Andaman and Nicobar Administration

28
Infrastructure relating to cargo handling like satellite freight cities with multimodal transport, cargo
terminals, cold storage, automatic storage and retrieval systems, mechanized transportation of cargo,
computerization and automation, etc., will be set up on top priority basis. Such facilities have to come
up at smaller places too. The Electronic Data Interchange systems will be developed and linked
amongst all stake-holders in the trade
The government plans to raise the FDI cap in air cargo business to 74 per cent as part of efforts to
further open up the sector for foreign investment. There is huge opportunity in the cargo business.
According to the civil aviation ministry, Nagpur should be made the cargo hub of the country because
of its geographical advantage. The central government may provide all required support to make it a
truly world class cargo hub.

5. MRO Facilities
Indian MRO industry is expected to triple in size from 2,250 crore in 2010 to 7,000 crore by 2020.
However, this may still be small compared to the present MRO industry size of other countries such
as UAE ( 8,000 crore per annum) and China ( 10,000 crore per annum)
Ground Handling - By 2017, ground handling market is expected to double from present 2,000 crore
to 3,900 crore. A number of global ground-handling players have aggressive expansion plans in India.
This would, however, depend significantly on supportive policies and requisite airport infrastructure
development
India has the potential to be an MRO hub due to the growing aircraft fleet, locational advantage and
availability of talent. Indias lower labor cost advantage roughly half of that in Europe and USA will
make the MRO operations more profitable for service providers. At the same time it will result in cost
saving (cuts in expenditure) for airlines in India on account of not being required to take the aircraft
out of India for MRO services. Indian airline companies spend over 1315 per cent of their revenues
on maintenance, which is the second-highest cost component after fuel. Given the growth of Indian
aviation, it is logical to encourage MRO infrastructure to support the growth in the sector.
Looking at the need and potential there have already been initiatives from both public as well as
private sector. National Aviation Corporation of India Limited (NACIL) has plans to set up separate
MRO facilities in association with Boeing and Airbus. A satellite MRO center is planned at Chennai
Aero Park. Gujarat government is examining the prospects for developing MRO business and making
Gujarat, a MRO hub in the region. Ahmedabad Aviation and Aeronautics (AAA), has drawn up plans
to set up MRO business in Ahmedabad by end of 2009 as part of its Aviation City Project.

6. Aerotropolis
The term aerotropolis means Airport City. In its simplest form, the aerotropolis is an economic hub
that extends from a large airport into an adjoining area that consists mostly of distribution centers,
office buildings, light manufacturing firms, convention centers, and hotels, all linked to the airport via
roads and rail lines. These aerotropolis would be the prime movers for promoting local economic
development and a potential hub for sourcing foreign investments. Unlike conventional airports, an
aerotropolis is likely to generate simultaneous growth of other prominent sectors like real estate,
hospitality, manufacturing industries etc.
The most developed examples of aerotropolis are to be found in the rising economies of Asia - and
typically in city states such as Hong Kong, Singapore, and Dubai.
The concept of aerotropolis or airport city, though at a nascent stage in India, is fast catching, primarily
due to the concept being seen as a viable investment option as compared to stand alone airports. In
an aerotropolis, a major share of revenue comes from non-aeronautical components such as real

29
estate, hospitality, tourism which yield faster returns than the aeronautical components. In such a
scenario, even though the aeronautical part has a long gestation period, the financial standing of the
company is not affected due to returns from the allied/non-aeronautical developments.
Indias first aerotropolis is being built in Durgapur, West Bengal. The project is being developed by
Bengal Aerotropolis Pvt Ltd (BAPL) which is a joint venture of Changi Airports India Pte Ltd., IL&FS
Airports Ltd., Pragati Social Infrastructure & Development Ltd., Lend Lease Compnay (India) Ltd.,
Citystar Infrastructures Ltd. and Pragati 47 Development Ltd. The project is spread across 1818 acres
and will cost around 600 crores.


30
8. Appendix A: Airport wise traffic of Indian Airports (2012-13)

11 International Airports (A)
S.No. Aiport 2012-13 2011-12 % Change
1 CHENNAI 2,776,760 12,925,218 -1.1
2 KOLKATA* 10,068,655 10,303,991 -2.3
3 AHMEDABAD 4,162,747 4,695,115 -11.3
4 GOA 3,542,747 3,521,551 0.6
5 TRIVANDRUM 2,839,083 2,814,799 0.9
6 GUWAHATI 2,076,938 2,244,684 -7.5
7 CALICUT 2,273,703 2,209,716 2.9
8 JAIPUR 1,802,469 1,828,304 -1.4
9 SRINAGAR 1,861,691 1,632,098 14.1
10 AMRITSAR 895,425 892,104 0.4
11 PORTBLAIR 703,483 611,184 15.1
Total 43,003,701 43,678,764 -1.5
6 JV International Airports (B)
12 DELHI (DIAL) 34,368,411 35,881,965 -4.2
13 MUMBAI (MIAL) 30,207,514 30,747,841 -1.8
14 BANGALORE (BIAL) 11,993,887 12,698,343 -5.5
15 HYDERABAD (GHIAL) 8,300,469 8,444,431 -1.7
16 COCHIN (CIAL) 4,880,773 4,717,650 3.5
17 NAGPUR (MIPL) 1,262,921 1,415,739 -10.8
Total 91,013,975 93,905,969 -3.1
12 Custom Airports (C)
18 PUNE 3294909 3293146 0.1
19 LUCKNOW 2022414 2018554 0.2
20 COIMBATORE 1297804 1345381 -3.5
21 PATNA 1003169 1021544 -1.8
22 VISAKHAPATNAM 1037608 958160 8.3
23 TRICHY 870030 908771 -4.3
24 MANGALORE 1043386 893423 16.8
25 CHANDIGARH 881555 802059 9.9
26 VARANASI 808497 747811 8.1
27 BAGDOGRA 666052 735078 -9.4
28 MADURAI 558502 511737 9.1
29 GAYA 121091 98273 23.2
Total 13605017 13333937 2
17 Domestic Airports (D)
30 BHUBANESWAR 1389552 1253263 10.9
31 INDORE 1083663 1112834 -2.6

31
32 JAMMU 862083 888595 -3
33 AGARTALA 791105 836700 -5.4
34 RAIPUR 810435 802583 1
35 IMPHAL 672872 727579 -7.5
36 VADODARA 676090 669931 0.9
37 RANCHI 463738 491418 -5.6
38 BHOPAL 492347 422595 16.5
39 AURANGABAD 439275 404192 8.7
40 LEH 347616 373420 -6.9
41 UDAIPUR 360320 370934 -2.9
42 RAJKOT 283291 261363 8.4
43 TIRUPATI 286548 240681 19.1
44 DIBRUGARH 230761 231870 -0.5
45 JODHPUR 260649 214827 21.3
46 SILCHAR 218735 209317 4.5
Total 9669080 9512102 1.7
OTHER AIRPORTS (E) 2006484 1874650 7
GRAND TOTAL (A+B+C+D+E) 159298257 162305422 -1.9
Source: AAI


32
9. Appendix B: Airport Projects under PPP Program

S
No
Project Name PPP
Type
Scheme Location TPC
(Rs.
Cr.)
Implementing
Agency
Status
1 Rajiv Gandhi Hyderabad
International Airport.-
BOOT State
Level
Projects
Shamshabad,
Ranga Reddy
District, Andhra
Pradesh

2,487
Principle Secretary,
Infrastructure &
Investment Dept.
Operational
2 Development of Green
Airports at Nellore,
Ongole,Tadepallygudem,
Kurnool, Kothagudem,
Ramagundam and
Nizamabad.-
PPP State
Level
Projects
Nellore, Ongole,
Tadepallygudem,
Kurnool,
Kothagudem,
Ramagundam and
Nizamabad.
VC&MD Infrastructure
Corporation
Pipeline
3 International Airport -
ahmedabad-dholera
PPP State
Level
Projects
Dholera
2,500
Pipeline
4 Gulbarga Minor Airport BOT State
Level
Projects
Gulbarga
80
Infrastructure
Development
Corporation of Karnataka
Construction
5 Shimoga Minor Airport BOT State
Level
Projects
Shimoga
80
Infrastructure
Development
Construction
6 Construction of Hassan
Airport
BOT State
Level
Projects
Hassan
150
Infrastructure
Development
Construction
7 Construction of New
Greenfield Airport at Bellary
BOT State
Level
Projects
Bellary
141
Infrastructure
Development
Construction
8 Development of Minor
Airport at Bijapur
BOT State
Level
Projects
Bijapur
80
Infrastructure
Development
Construction
9 Bangalore International
Airport (BIAL)
DBFOT State
Level
Projects
Bangalore
2,470
Karnataka State
Industrial Investment &
Development
Corporation
Operational
10 Amravati Airport PPP State
Level
Projects
Amravati
279
Pipeline
11 Jalgaon Airport PPP State
Level
Projects
Jalagaon
263
Pipeline
12 Shirdi Airport PPP State
Level
Projects
Shirdi
264
Pipeline
13 Solapur Airport PPP State
Level
Projects
Solapur
310
Pipeline
14 International Airport Chakan
(Pune)
PPP State
Level
Projects
Pune
7,101
Pipeline
15 City side development of
Udaipur Airport through PPP
PPP PPPAC
Project
Udaipur Civil Aviation (Ministry of
Civil Aviation)
Proposal granted
in-principle
approval on
30.4.2008

33
16 City side development of
Amritsar Airport through PPP
PPP PPPAC
Project
Amritsar Civil Aviation (Ministry of
Civil Aviation)
Proposal granted
in-principle
approval on
30.4.2008
17 Modernisation of Mumbai
International Airport
LDOT IIFC
Project
Mumbai
5,825
Mumbai International
Airport Pvt. Ltd
Operational
18 Modernisation of Delhi
LDOT IIFC
Project
Delhi
8,890
GMR Group, Fraport AG
Frankfurt, Malaysia
Airports Holdings Berhad
Operational
19 Cochin International Airport BOO Cochin
303
Airport Authority of India Under Operations
20 Dwarka Airport Project - - Dwarka
500
- Construction
21 Dr. Bhimrao Ambedkar
Airport
Under
Bidding
State
Level
Projects
Meerut - - -
22 Development of International
Airport at Khushinagar
Under
Bidding
VGF Uttar Pradesh 354
Source: PPP in India Database


34
10. Appendix C: Operators of major airports across the world

S.No. Name Ranking* Airport Size Operator/O&M Partner
1 Incheon international
Airport
1 30 - 50 Incheon International Airport Corp
2 Singapore Changi Airport 2 30 - 50 Changi Airport Group
3 Hong Kong International
Airport
3 Greater than 50 BCS
Pan Asia Pacific Aviation Services
Limited
4 Amsterdam Schiphol Airport 4 30 - 50 Schiphol Group
5 Beijing Capital International
Airport
5 Greater than 50 Beijing Capital International Airport
Company Limited
6 Munich Airport 6 30 - 50 Flughafen Mnchen GmbH (FMG)
7 Zurich Airport 7 20 - 30 Flughafen Zrich
8 Vancouver International
Airport
9 10-20 Vantage Airport Group
9 Kuala Lumpur International
Airport
9 30 - 50 Malaysia Airports Holdings Berhad
10 London Heathrow Airport 11 Greater than 50 Ferrovial
11 Copenhagen Airport 12 20 - 30 Swissport
12 Auckland International
Airport
13 10-20 Auckland International Airport Limited
13 Tokyo International Airport
Haneda
14 Greater than 50 Japan Airport Terminal Co., Ltd.
14 Frankfurt Main Airport 15 Greater than 50 Fraport
15 Shanghai Hongqiao
16 30 - 50 Shanghai Airport Authority
16 Narita International Airport 17 30 - 50 NARITA INTERNATIONAL AIRPORT
CORPORATION
17 Abu Dhabi International
Airport
18 10-20 Abu Dhabi Airports
18 Kansai International Airport 19 10-20 Kansai International Airport Land Co.,
Ltd.
19 Sydney Airport 20 30 - 50 Sydney Airport Corporation Ltd.
20 Barcelona Airport 21 30 - 50 Aena Aeropuertos
21 Helsinki Vantaa Airport 22 10-20 Finavia
22 Seoul Gimpo Airport 23 10-20 Korea Airports Corporation
23 Cincinnati/Northern
Kentucky Int'l Airport
24 20 - 30 Kenton County Airport Board
24 Bangkok Suvarnabhumi
Airport
25 30 - 50 Airports of Thailand PLC
25 Dubai International Airport 26 Greater than 50 Dubai Airports Company
26 Hamburg Airport 28 10-20 AHS Aviation Handling services
27 Taiwan Taoyuan
29 10-20 Taoyuan Airport Corporation

35
28 Taiwan Taoyuan
29 20 - 30 Taoyuan Airport Corporation
29 Jorge Chvez International
Airport
30 10-20 Lima Airport Partners S.R.L. (LAP) - a
consortium composed of Fraport AG ,
Bechtel Enterprises Services, Ltd.
30 O.R. Tambo International
Airport
31 10-20 Airports Company South Africa
31 Moscow Domodedovo
Airport
40 20 - 30 DME Enterprises
32 Vienna International Airport 41 20 - 30 Flughafen Wien AG
33 Melbourne Airport 43 20 - 30 Australia Pacific Airports Corporation
Limited
34 Denver International Airport 44 Greater than 50 Denver's Department of Aviation
35 Oslo Airport 48 20 - 30 Avinor
36 Dallas/Ft Worth Airport 49 Greater than 50 Dallas/Fort Worth International Airport
37 Hartsfield-Jackson Atlanta
Int'l Airport
59 Greater than 50 CH2M HILL
38 Delhi Indira Gandhi Int'l
Airport
62 20 - 30 Fraport
39 Paris Charles de Gaulle
Airport
78 Greater than 50 Aroports de Paris; Schiphol Group
40 Palma de Mallorca Airport 93 20 - 30 Aena Aeropuertos
* Skytrax Airport rankings 2012, Source: Primary Research


36
11. Appendix D: Skytrax Global Airport Rankings

2012 Rank Airport 2011 Rank
1 Incheon International Airport 3
2 Singapore Changi Airport 2
3 Hong Kong International Airport 1
4 Amsterdam Schiphol Airport 6
5 Beijing Capital International Airport 5
6 Munich Airport 4
7 Zurich Airport 7
8 Kuala Lumpur International Airport 9
9 Vancouver International Airport 12
10 Central Japan International Airport 11
11 London Heathrow Airport 16
12 Copenhagen Airport 10
13 Auckland International Airport 8
14 Tokyo International Airport Haneda 17
15 Frankfurt Main Airport 20
16 Shanghai Hongqiao International Airport 21
17 Narita International Airport 19
18 Abu Dhabi International Airport 26
19 Kansai International Airport 14
20 Sydney Airport 40
21 Barcelona Airport 15
22 Helsinki Airport 18
23 Seoul Gimpo Airport 27
24 Cincinnati/Northern Kentucky Intl Airport 24
25 Bangkok Suvarnabhumi Airport 13
26 Dubai International Airport 23
27 Cape Town International Airport 28
28 Hamburg Airport 29
29 Taiwan Taoyuan Airport 31
30 Jorge Chvez International Airport 32
31 O.R. Tambo International Airport 25
32 Shanghai PuDong International Airport 39
33 Athens International Airport 43
34 Brisbane Airport 38
35 King Shaka International Airport 33
36 Dusseldorf International Airport 31
37 London City Airport 45

37
38 Madrid Barajas Airport 22
39 San Francisco International Airport 50
40 Moscow Domodedovo Airport 36
41 Vienna Airport 51
42 London Stansted Airport 47
43 Melbourne Airport 48
44 Denver International Airport 35
45 London Gatwick Airport 66
46 Gold Coast Airport 34
47 Toronto Pearson International Airport 49
48 Oslo Airport 42
49 Dallas/Fort Worth Airport 37
50 Billund Airport 62
51 Stockholm Arlanda Airport 46
52 Guangzhou Baiyun International Airport 41
53 Cologne/Bonn Airport 61
54 Prague Ruzyne Airport 44
55 Porto Francisco S Carneiro Airport 55
56 Guayaquil Airport 58
57 Istanbul Atatrk Airport 54
58 Bahrain International Airport 52
59 Hartsfield-Jackson Atlanta International Airport 57
60 Malta International Airport 73
61 Lisbon International Airport 60
62 Delhi International Airport 95
63 Doha International Airport 56
64 Haikou Meilan International Airport 53
65 Minneapolis St.Paul International Airport 64
66 Manchester Airport 67
67 Bangalore International Airport 59
68 Halifax Stanfield International Airport 88
69 Brussels Airport 63
70 Christchurch International Airport 65
71 Seattle-Tacoma International Airport 75
72 Panama Tocumen Airport 69
73 Nice Cte d'Azur Airport 68
74 JFK International Airport 70
75 Adelaide Airport 74
76 Detroit Metro Airport 72
77 Hyderabad Rajiv Gandhi International Airport 92
78 Paris Charles de Gaulle Airport 89

38
79 Montreal-Trudeau International Airport 71
80 Perth International Airport 86
81 Berlin Tegel Airport 77
82 Raleigh Durham Airport 84
83 George Bush Intercontinental Airport 81
84 Keflavik Airport 85
85 Budapest Ferihegy Airport 78
86 Chicago O'Hare Airport 80
87 Luxembourg Findel Airport 79
88 Charlotte Douglas International Airport 87
89 Muscat International Airport 97
90 Pittsburgh International Airport 83
91 Sanya Phoenix Airport 76
92 Fukuoka Airport 90
93 Palma de Mallorca Airport 91
94 Boston Logan Airport 99
95 Birmingham International Airport 98
96 Newark Liberty International Airport 101
97 Philadelphia International Airport 100
98 Sheremetyevo International Airport 105
99 Salt Lake City Airport 102
100 Cairo International Airport 82
Source: Skytrax


39
12. References

Websites
http://www.aai.aero/traffic_news/AnnualReviewTraffic2012-13.pdf
http://www.newdelhiairport.in/fact-sheet.aspx
http://www.aai.aero/public_notices/aaisite_test/orign.jsp
http://aera.gov.in/documents/pdf/GREENFIELDAIRPORTPOLICY.pdf
http://www.infrastructure.gov.in/airports.php#potential
http://aera.gov.in/documents/pdf/AAI_1.pdf
http://www.pib.nic.in/newsite/erelease.aspx?relid=70765
http://www.aai.aero/public_notices/aaisite_test/policy.jsp#4
http://www.atcguild.com/tour/touratc2.asp
http://www.aai.aero/public_notices/aaisite_test/airtraffic_management.jsp
http://centreforaviation.com/analysis/capa-report-potential-for-usd35bn-of-duty-free-retail-fb-
spend-at-indian-airports-74409
http://www.newdelhiairport.in/marketing-possibilities.aspx
http://hindi.iocl.com/downloads/Investor_Presentation_2013.pdf
http://petroleum.nic.in/pngstat.pdf
http://businesstoday.intoday.in/story/behind-increasing-number-of-retail-shops-at-indian-
airports/1/204082.html
https://www.iata.org/policy/Documents/single-till.pdf
http://centreforaviation.com/analysis/indian-ppp-airports-drive-340-growth-in-retail-and-other-
non-aero-revenues-over-5-years-67675
http://www.business-standard.com/article/companies/money-from-delhi-mumbai-fuelling-
govt-s-airport-modernisation-plan-114011300031_1.html
http://www.share-
pdf.com/9c5599004b684bad821b76794a8c8456/Appraisel%20Report%20As%20Submitted%20t
o%20Bank%20of%20Maharashtra.pdf
Other Sources
12
th
Five year Plan
AERA White Paper
Annual Report 2012-13, Airport Authority of India
Annual Report 2012-13, Ministry of Civil Aviation
Greenfield Airport Policy - 2011, Ministry of Civil Aviation
MOCA WORKING GROUP ON AIR LOGISTICS REPORT
Policy on Airport Infrastructure 2011, Ministry of Civil Aviation
OMDA, Delhi Airport
Strategic Plan 2010-15, Ministry of Civil Aviation
PPP Position Paper, Ministry of Civil Aviation

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