Vous êtes sur la page 1sur 25

INDIA

CAPAIndia
GroundHandling
Report2014

TableofContents

&SampleExtracts

www.capaindia.com
www.centreforaviation.com

TableofContents

Glossary..............................................................................................................................2
ExecutiveSummary............................................................................................................4
GlobalOverviewofGroundHandling...............................................................................24
IndiaAviationOverview...................................................................................................45
Passengertraffic.......................................................................................................................45
Airtransportmovements..........................................................................................................46
Cargotraffic..............................................................................................................................48
FleetSize...................................................................................................................................49
CAPAtrafficandmovementsforecasttoFY2023.......................................................................50

Profilesof10LargestIndianAirports................................................................................59
DelhiAirport.............................................................................................................................59
MumbaiAirport........................................................................................................................67
BengaluruAirport.....................................................................................................................75
ChennaiAirport.........................................................................................................................82
KolkataAirport..........................................................................................................................89
HyderabadAirport....................................................................................................................95
CochinAirport.........................................................................................................................102
AhmedabadAirport................................................................................................................108
GoaAirport.............................................................................................................................114
PuneAirport...........................................................................................................................119

SWOTAnalysisofMetroAirportsfromaGroundHandlersPerspective........................125
BengaluruAirport...................................................................................................................125
HyderabadAirport..................................................................................................................126
ChennaiAirport.......................................................................................................................127
KolkataAirport........................................................................................................................128
MumbaiAirport......................................................................................................................129
DelhiAirport...........................................................................................................................130

GroundHandlingMarketinIndia...................................................................................131
GroundHandlingCosts...................................................................................................137
SubcontractingofGroundHandlingActivities................................................................143
RegulatoryFramework...................................................................................................147
ProfilesofKeyGroundHandlers.....................................................................................153

INDIA

AirIndiaSATSAirportServices................................................................................................154
BhadraIndia............................................................................................................................157
BirdWorldwideFlightServices(BWFS)....................................................................................159
CambataAviationPvt.Ltd.......................................................................................................161
elebiIndia.............................................................................................................................163
elebiNASAirportServicesIndiaPvt.Ltd................................................................................165
GlobeGroundIndia..................................................................................................................167
IndoThai.................................................................................................................................169
MenziesGroup........................................................................................................................171

SWOTAnalysisofKeyGroundHandlers.........................................................................174
DelhiAirportAISATSAirportServicesPvt.Ltd.......................................................................174
DelhiAirportCambataAviationPvt.Ltd...............................................................................175
DelhiAirportelebiGroundHandlingDelhiPvt.Ltd.............................................................176
DelhiAirportBirdWorldwideFlightServicesPvt.Ltd............................................................178
MumbaiAirportAirIndia......................................................................................................179
MumbaiAirportCambataAviationPvt.Ltd..........................................................................180
MumbaiAirportelebiNASAirportServicesIndiaPvt.Ltd...................................................181
BengaluruAirportAISATSAirportServicesPvt.Ltd...............................................................182
BengaluruAirportGlobeGround(India)Pvt.Ltd...................................................................183
ChennaiAirportAirIndia......................................................................................................184
ChennaiAirportBhadraInternationalIndiaLtd....................................................................185
ChennaiAirportCambataAviationPvt.Ltd...........................................................................186
KolkataAirportBhadraInternationalIndiaLtd.....................................................................187
KolkataAirportAirIndia.......................................................................................................188
HyderabadAirportAISATS....................................................................................................189
HyderabadAirportMenziesBobbaGroundHandlingServicesPvt.Ltd..................................190

SelectionofGroundHandlersbyAirlines........................................................................191
Introduction............................................................................................................................191
DelhiAirport...........................................................................................................................193
MumbaiAirport......................................................................................................................193
ChennaiAirport.......................................................................................................................194
KolkataAirport........................................................................................................................195
BengaluruAirport...................................................................................................................195
HyderabadAirport..................................................................................................................196

INDIA

CAPASurveyofKeyStakeholders...................................................................................198
GroundHandlers.....................................................................................................................198
Airlines....................................................................................................................................202
AirportOperators....................................................................................................................207
GeneralAviation.....................................................................................................................212

AnalysisofGroundHandlingTariffsatMetroAirportsinIndiainFY2014.......................214
DelhiAirport...........................................................................................................................214
MumbaiAirport......................................................................................................................215
ChennaiAirport.......................................................................................................................217
KolkataAirport........................................................................................................................219
BengaluruAirport...................................................................................................................220
HyderabadAirport..................................................................................................................221

Appendices.....................................................................................................................223
AppendixA:Domesticairtransportmovementsbyaircrafttype............................................223
AppendixB:CeilingratesofgroundhandlingservicesatmetroairportsinIndia.....................224
AppendixC:ListofgroundhandlingsubcontractorsatmetroairportsinIndia........................225
AppendixD:Listofground/cargohandlersatIndianairports..................................................226
AppendixE:Minimumandaveragewageratesofpersonnelingroundhandling.....................228
AppendixF:Listofground/cargohandlerscoveredunderstudyforfinancialanalysis.............229
AppendixG:Financialanalysisofground/cargohandlingfirmsatDelhiAirport......................231
AppendixH:Financialanalysisofground/cargohandlingfirmsatBengaluruAirport...............247
AppendixI:Financialanalysisofground/cargohandlingfirmsatBengaluruAirport................263
AppendixJ:FinancialAnalysisofground/cargohandlingfirmsatKolkataAirport...................268
AppendixK:FinancialAnalysisofground/cargohandlingfirmsatHyderabadAirport.............270
AppendixL:FinancialAnalysisofground/cargohandlingfirmsatLucknow,Jaipurairports.....271
AppendixM:FinancialAnalysisofground/cargohandlingfirmsatCochinAirport...................272
AppendixN:FinancialAnalysisofground/cargohandlingfirmsatBhubaneshwarAirport.......274
AppendixO:Financialanalysisofground/cargohandlingfirmsatTrivandrumairport.............275
AppendixP:Groundsupportequipmentwithselectdesignatedgroundhandlingfirms..........276

INDIA

CAPAIndiaGroundHandlingReport2014
INDIA

Figure12:Airtrafficmovementsbyaircrafttype,FY13
Market
segment

Domestic

Narrowbody
99%

International

Widebody
1%

Narrowbody
3040%

Widebody
6070%

Source:CAPAResearch,AirportIS
Note:Widebodyoperationsondomesticroutesweremainlypositioningflights

The majority of Indian domestic routes have a flight time of 2.5 hours or less making them most
suitablefornarrowbodyorregionalaircraft.Inthefuture,onhighdensityroutesatslotconstrained
airports such as Mumbal we may see the deployment of wide body aircraft, however these will
accountforarelativelysmallshareofthenationaltotal.
Internationalservicesoperatedbyforeigncarriersaredominatedbywidebodyaircraft,howeverthe
proportion of narrow body equipment has been increasing as a result of the entry of low cost
carriersoperatingregionalinternationalroutestoIndiafromtheGulfandSoutheastAsia.Andgoing
forward,reenginedA320neosand737MAXaircraftwillbeeconomicaloveralongerrangemaking
themsuitablefordeploymenttoalargernumberofinternationaldestinations.
Table5:Top10marketsforpassengerhandling,internationalservices,widebodyaircraft,FY13

Airport

Estimatedmarketsize(USDmillion/year)

Delhi
Mumbai
Chennai
Bengaluru
Cochin
Hyderabad
Kolkata
Trivandrum
Calicut
Ahmedabad

xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x

Source:CAPAResearch

2014CAPAIndia

34

CAPAIndiaGroundHandlingReport2014
INDIA

Figure13:Estimatedvalueofmarketsegmentsforgroundhandling
Market
segment

Domestic
services

International
services

Indiancarriers

Indiancarriers
(USDxxmillion

(USDxxmillion)

Foreigncarriers
(USDxxmillion)

Source:CAPAResearch

The international ground handling market in India, which is the aggregate of Indian and foreign
carriers operating international services, was estimated at USDxx million in FY13 and represented
more than xx% of the market opportunity, see Figures 14 and 15. The international segment was
estimatedatxx%Indianandxx%foreigncarriers.
Figure14:Estimatedaveragemarketopportunitybycustomersegment,FY13(USDmillion)*

xx
xx

Domesticflights
Internationalflights(domesticcarriers)

xx

InternationalFlights(foreigncarriers)

Source:CAPAResearch

2014CAPAIndia

36

CAPAIndiaGroundHandlingReport2014
INDIA

Figure15:Relativeshareofdomesticandinternationalhandlingmarketbyvalue,FY13(%)

28%

Domestic
International

72%

Source:CAPAResearch,

CAPA estimates that Delhi was the largest ground handling market in India for both domestic and
internationalservices.Thetop10marketopportunitiesfordomesticgroundhandlingservicesare
listedinTable8andthoseforinternationalservicesareprovidedinTable9.
Table8:Estimatedtop10marketopportunitiesforgroundhandlingDomestic

Airport
Delhi
Mumbai
Bengaluru
Chennai
Kolkata
Hyderabad
Ahmedabad
Guwahati
Pune
Goa

Marketsize(USDmillion/year)
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x

Source:CAPAresearch

Table9:Estimatedtop10marketopportunitiesforgroundhandlingInternational

Airport
Delhi
Mumbai
Chennai
Cochin
Calicut
Bengaluru
Hyderabad
Kolkata
Trivandrum
Ahmedabad

Marketsize(USDmillion/year)
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x
xx.xxx.x

Source:CAPAresearch

2014CAPAIndia

37

CAPAIndiaGroundHandlingReport2014
INDIA

Royaltychargesatmetroairports
Figure17:Royaltychargesatmetroairports

S.No.

Airports

Groundhandlingfirms

Royaltycharges

Delhi

AISATSAirportServicePvt.Ltd

xx%ontherevenueearnedasperthe
ceilingrates
xx%ongrossrevenues
xx%ongrossrevenue

BirdWorldwideFlightServices(India)Pvt.Ltd.
CambataAviationPvt.Ltd.
elebiGroundHandlingDelhiPvt.Ltd.

xx%ongrossrevenuesor12.75%on
revenuesearnedaspertheceilingrates

Mumbai

AirIndia
CambataAviationPvt.Ltd.
elebiNASAirportServicesIndiaPvt.Ltd.

xx%ofgrossrevenue
xx%ongrossrevenues
xx%ongrossrevenues

Chennai

AirIndia
BhadraInternationalIndiaLtd
CambataAviationPvt.Ltd.

n/a
xx%ongrossrevenues
xx%ongrossrevenues

Kolkata

AirIndia
BhadraInternationalIndiaLtd

n/a
xx%ongrossrevenues

Bengaluru

AISATSAirportServicePvt.Ltd
GlobeGround

xx
xx

Hyderabad AISATSAirportServicePvt.Ltd
MenziesBobbaGroundHandlingServicesPvt.
Ltd.

xx%onrevenueearnedfrom
internationalsector
xx%onrevenueearnedfrom
internationalsector

Source:CAPAResearch,AERA,Companyfilings
Note:n/aNotavailable

2014CAPAIndia

47

CAPAIndiaGroundHandlingReport2014
INDIA

TheestimatedmanpowercostperprocessatthesixmetroairportsispresentedinTables13and14.
Theseareaggregatedcostsandvarybymetro,dependingonminimumwagerequirements,costof
living,andmarketforcesineachmetro.Manpowerallocationvarieslargelydependingonthetype
ofoperation(domesticorinternational).
Table13:Averagemanpowercostsformetroairportsbyprocess*
Domesticflights,FY13(USD/day)

Airport

Cabincleaning

Ramp

Passenger
processing

x
x
x
x
x
x

xx
xx
xx
xx
xx
xx

xx
xx
xx
xx
xx
xx

Delhi
Mumbai
Kolkata
Hyderabad
Bengaluru
Chennai

Source:CAPAResearch,*costshavebeenaveragedoutacrossairlines

Table14:Averagemanpowercostsformetroairportsbyprocess*
Internationalflights,FY13(USD/day)

Airport

Cabincleaning

Ramp

Passenger
processing

x
x
x
x
x
x

xx
xx
xx
xx
xx
xx

xx
xx
xx
xx
xx
xx

Delhi
Mumbai
Kolkata
Hyderabad
Bengaluru
Chennai

Source:CAPAResearch,*costshavebeenaveragedoutacrossairlines

Assetcosts
Assetcostsforvariousprocessesarelargelythesameacrossairportsanddonotvarybygeography.
Thesecostsarelargelydrivenbythenatureoftheequipmentandvarybythetypeofaircraft.CAPA
hasdevelopedestimatesforassetcostsforbothhubaswellasspokestations,basedonexhaustive
researchandprimaryresearch,andthesearepresentedinTables15and16.
Theseestimatesreflectthecostsofnewassets,asrequiredunderthepolicy.However,ithasinthe
pastbeencommontoseealargesecondarymarketforthepurchaseofequipment.Actualcostsmay
varydependingonvolumepurchases,depreciatedvalues,negotiatingpower,andtheusefullifeof
theequipment.

2014CAPAIndia

51

CAPAIndiaGroundHandlingReport2014
INDIA

Table15:Minimumequipmentrequiredfornarrowbodyflightsataspokestationandindicative
costs,FY13

S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Equipment

Number(s)required

Unitcost(USD)

1
4
1
2
1
2
2
1
1
1
1
2
1
2
6

xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx

Aircraftwheelchocks
Baggagedollies
Crewcoach
Dieseltractor
Groundpowerunit
Marshallingtorchpads
Motorisedconveyorbelt
Motorisedpassengerstairs
Passengercoach
Pushback(narrowbody)
Towbars(CodeC)
Towableconveyor/beltloader
Towablestepladder(A320)
Wheelchairs
Cones

Source:CAPAResearch

Table16:Minimumequipmentrequiredfornarrowbodyflightsatahubairportandindicative
costs,FY13

Equipment
Airconditioningunit(65tonnes)
Airstartunit
Aircraftwheelchocks
Baggagedollies
Crewcoach
Dieseltractor
Groundpowerunit
Marshallingtorchpads
Motorisedconveyorbelt
Motorisedpassengerstairs
Passengercoach
Pushback(narrowbody)
Toiletcart
Towbars(CodeC)
Towableconveyor/beltloader
Towablestepladder(A320)
Watercart
Wheelchairs
Cones
Fuel
Insurance

2014CAPAIndia

Number(s)required

Unitcost(USD)

1
1
4
4
1
2
1
1
2
2
2
1
1
1
2
1
1
4
4

xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Variable
xx%xx%ofassetvalue

52

CAPAIndiaGroundHandlingReport2014
INDIA

DelhiAirportairtrafficmovementsbyaircrafttype:Internationaldepartures
byIndiancarriers
AircraftType
737800wingletspax/BBJ2
A320
777300ERpassenger
A319
A330200
737passenger
777200LRpassenger
A321
737800passenger
787800
737900passenger
A330300
A330
GrandTotal

DeparturesFY13
2,859
2,635
2,086
1,521
1,175
1,076
947
921
337
261
191
38
10
14,057

Source:CAPA,AirportIS

DelhiAirportairtrafficmovementsbyaircrafttype:Internationaldepartures
byforeigncarriers
AircraftType
A330300
A320
777200/200ERPassenger
A330200
777300passenger
767300passenger
777passenger
737800passenger
A330
747400passenger
A340600
A319
757200passenger
777200LRpassenger
A321
A310
767passenger
767200passenger
737300
A340300
7478passenger
777300ERpassenger
MD82
747passenger

2014CAPAIndia

DeparturesFY13
2,543
2,376
1,541
1,334
963
892
879
770
658
533
510
504
501
487
457
391
365
309
261
251
233
227
192
154

58

CAPAIndiaGroundHandlingReport2014
INDIA

MD11passenger
A340
MD83
787800
737500
757passenger
787
737700wingletspax/BBJ1
737200
A300600passenger
B727passenger
757200wingletspassenger
737700passenger
767400passenger
A340500
E190
737passenger
GrandTotal

137
97
63
62
44
43
41
32
19
19
15
8
2
2
2
2
1
17,920

Source:CAPA,AirportIS

GroundhandlingcostsperDeparture:LCCs
AsperCAPAestimatesderivedfromaproprietarymodelandextensiveprimaryresearch,handling
costsforlowcostcarriersonaperdeparturebasisoutofDelhiareestimatedasbelow:

Airline

Aircraft

Costperdeparture(INR)

IndiGo
SpiceJet
SpiceJet
GoAir

A320
737
Q400
A320

xxxxxx
xxxxxx
xxxxxx
xxxxxx

Source:CAPAresearch
Note:allassetcostsarecapitalisedandbasedontheassumptionthatinvestmentismadeintheminimumequipment
requiredtoservicethecurrentvolumeofdepartures.AstheheadquartersforSpiceJetandIndiGo,thecostsatDelhialso
includeanallocationformanagementandtrainingcosts.

GroundhandlingcostsperDeparture:FSCs
Estimatedhandlingcostsperdepartureforfullservicecarriersareasbelow:

Airline

A/C

AirIndia

Jet

Narrowbody(dom)
Widebody(Intl.)
Narrowbody(dom)
Widebody(Intl.)

Costperdeparture(INR)
xxxxxx
xxxxxx
xxxxxx
xxxxxx

Source:CAPAresearch
Note:allassetcostsarecapitalisedandbasedontheassumptionthatinvestmentismadeintheminimumequipment
requiredtoservicethecurrentvolumeofdepartures.ForAirIndiathisincludesmanagementandtrainingcosts;numbers
forJetincluderegionalaircraftbutexcludeJetKonnect.

2014CAPAIndia

59

CAPAIndiaGroundHandlingReport2014
INDIA

Numberofoutsourcedemployees
According to CAPA Research findings based on extensive engagement with key stakeholders
the level of outsourcing of manpower for domestic operations is lower than that for international
operationsforbothcabincleaningandramphandling.Table18presentsthenumberofoutsourced
employeesperdepartureforthesetwoactivities.
Table18:Numberofoutsourcedstaffperdeparturebyactivity

Domesticoperations
Internationaloperations

Cabincleaning*

Ramp**

xx
xxxx

xxxx
xxxx

Source:CAPAResearch,companyfilings
*Cabincleaningfigureincludeslavatoryandpotablewaterservices
**Rampfigureincludesmanpowerforbaggagetransportation,sorting,andairsideloading/unloading

Table 19 presents CAPA estimates for the number of outsourced employees at the top 10 Indian
airports.Wedevelopedthesenumbersonthebasisofourproprietarymodeloflabourrequirements
byactivitysupportedbyonthegroundindustryinputs.
Table19:Numberofoutsourcedgroundhandlingstaff attop10airports

Airport
Delhi
Mumbai
Bengaluru
Chennai
Hyderabad
Kolkata
Cochin
Ahmedabad
Pune
Goa

Numberofoutsourcedemployees
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx
xxxxxxxx

Source:CAPAresearch

Theseoutsourcedemployeesareoverandabovethoseonthedirectpayrollsofthegroundhandling
firms. If the final policy ruling prohibits subcontracting as the government is seeking to achieve,
thesestaffwillhavetobeemployeddirectlybytheauthorisedgroundhandlingfirms.
This will drive up overall labour costs because most of the subcontracted labour is currently
employedonthebasisofdailywages(oftenbelowtheminimumrate),withnotenureandfewifany
additionalbenefitssuchasleave,providentfundandmedical.
Formalising their employment on terms compliant with statutory regulations and providing a safe
working environment will result in increased costs. Handling firms will need to further invest in
trainingthesestafftoincreasetheirproductivitytomitigatetheincreasedexpenses.

2014CAPAIndia

111

CAPAIndiaGroundHandlingReport2014
INDIA

Currently,thevolumeofmanpoweroutsourcedbythefiveprivatedomesticairlinesisgreaterthan
thenumberofhandlingrelatedemployeesthattheyemploydirectly.Figure20providesthenumber
of onroll and outsourced staff engaged in handling activities for the five Indian airlines at the six
metroairports.
Figure20:EmploymentstatusofstaffengagedinhandlingactivitiesforthefiveIndiancarriersat
thesixmetroairports,FY11

Outsourced

6,210(39%)

Onpayroll
9,744(61%)

Source:CAPA,HighCourtfiling

Employeestrengthofgroundhandlingfirms
InFY12,eightgroundhandlingfirmsAirIndia,Cambata,elebiNAS,BirdWorldwideFlightServices
(BWFS),BhadraInternational,GlobeGround,elebiandIndoThaihandledthemajorityofaircraft
departuresatIndianairports.Thesegroundhandlingfirmsemployedcloseto25,000staff.Theyalso
makesomeuseofsubcontractingagencieshoweverinthecaseoftheauthorisedgroundhandlers
thisrepresentslessthan5%oftheirtotalstaffdeployment.
Table20:NumberofemployeeswithdesignatedGHfirms

Company
AirIndiaLimited
BhadraInternationalIndiaLtd.
BirdWorldwideFlightServices
CambataAviationPvt.Ltd
elebiGroundHandlingDelhiPvt.Ltd.
elebiNASAirportServicesIndiaPvt.Ltd.
GlobeGroundIndia
IndoThaiAirportManagementServicesPvt.Ltd
Total

Employeestrength(FY12)
10,481
1,396
1,979
7,000
678
2,125
1,017
93
24,769

Source:CAPAResearch,Companyfilings,AERA
Note:numbersmayincludeoutsourcedmanpower

2014CAPAIndia

112

CAPAIndiaGroundHandlingReport2014
INDIA

Majorsubcontractorsatmetroairports
Outsourcedmanpowerisusuallyprovidedbysubcontractors(definedasfirmsprovidingmanpower
orGSEservicestodesignatedgroundhandlersorairlinesthatareselfhandling).Thereareseveral
subcontractors present throughout the country and it is a largely unstructured and unorganised
market.MajorsubcontractorsforthesixmetroairportsarelistedinTable21.
Table21:Majorsubcontractorsatmetroairports

Station

Supplier

Services

Delhi

LionManpowerSolutionsPvt.Ltd.
NehaAviationServices
AroonAviationServices
SunshineEnterprises
AgarwalPackersandMovers
JACAirServices
LivewelAviation
TurboAviation
TaurusAviation
VisskanAviation
AirawatAviationServices
SteaderInternational
KrystalAviation

Manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
Manpowersupplier
Manpowersupplier
Manpowersupplier
Aircraftcleaningservices
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier

LivewelAviation
VisskanAviation

GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier

Hyderabad

Mumbai

Bengaluru

Kolkata

Chennai

DcorDrapesAviationServicesPvt.Ltd./Dcor
AviationPvt.Ltd
BengaluruAirportTerminalServices
JPAviationServices
AbleAviation
JaiSantoshiMaa
IdealCleaning
TranstrackServices
StarAviationServices
UniversalAviationServices
KaziAviation
KrystalAviationServices
SanthamContractors

GSEprovider,manpowersupplier,catering
services

Cabincleaningservices,groundhandling
Manpowersupplier
Manpowersupplier,handlingservices
Manpowersupplier
Cabincleaning
Manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
GSEprovider,manpowersupplier
Manpowersupplier
Manpowersupplier

Source:CAPAResearch

2014CAPAIndia

113

CAPAIndiaGroundHandlingReport2014
INDIA

FinancialanalysiselebiGroundHandlingDelhiPvt.Ltd.
Keyfinancialresults(USDmillion)

FY12*

FY11*

FY10

Totalincome
Totalexpenditure
Interest
Profit/(loss)beforetax
Provisionforincometax

5.84
4.90
1.63
(3.26)
0.00

1.7
(5.1)
n/a
(3.5)
0.0

n/a
n/a
n/a
n/a
n/a

Netincome

(3.26)

(3.5)

n/a

8.89
12.76
13.13

11.57
1.68
9.89
2.46
2.19
0.28
0.50
n/a
23.15

12.0
11.1
23.1

11.3
1.2
10.2
10.2
1.2
9.0
0.1
3.8
23.1

11.2
0.0
11.2

0.0
0.0
0.0
11.1
0.3
10.8
0.0
0.3
23.1

FY12

FY11

FY10*

(55.73)%
(55.73)%
(15.53)%

n/a
1.44

1.13

204.2%
203.7%
(14.9)%

n/a
0.9

8.5

n/a
n/a
n/a

n/a
0.0

38.9

Keyratios

Profitability
EBIT/operatingincome
PAT/operatingincome
ROCE
Solvency
Interestcoverage
Debttoequityratio
Liquidity
Currentratio

Shareholders'equity
Debt
Totalliabilities

Grossfixedassets
Depreciation
Netfixedassets
Currentassets
Currentliabilities
Netcurrentassets
Otherassets
Profitandlossaccount
Totalassets

Thegroundhandling
businessismarkedby
highoperating
leverage,asthe
majorityofcostsare
fixed.
Consequently,elebi
GroundHandling
beinginitssecond
yearofoperations
reportedalossof
USD3.26millionin
FY12.
elebihasbeen
aggressivelypursuing
newclientsfor
growthinaprice
sensitivemarket,
whichisevidentinits
growingrevenuesbut
decliningnetprofit.
Thecompanys
currentratiofellin
FY11andFY12.This
canbeattributedto
theloansittookfor
expansioninFY11
andtheincreasein
interestpayments
duetothe
subsequent
depreciationofthe
Rupee.

Source:CAPAResearch,MCA,*somenumbersareCAPAestimatesanddonotrepresentactuals.

2014CAPAIndia

125

CAPAIndiaGroundHandlingReport2014
INDIA

RatingagencyinputsforelebiGroundHandlingDelhiPvt.Ltd.
Ratingassignedtovariousbankfacilities
Facilities
Longtermbankfacilities
Shorttermbankfacilities
Total

Amount(INRmn)
750
600
1350

CurrentRating
CRISILBB(reaffirmed)
CRISILA4(reaffirmed)

PreviousRating
CRISILBB
CRISILA4

Source:CAPAResearch,CRISIL,asofFeb11,2013

2014CAPAIndia

126

CAPAIndiaGroundHandlingReport2014
INDIA

Capexplansbygroundhandlingfirmsat
selectedairports
Sr.No. Airports

GroundHandler

CapexProjections(INRMillion)

Delhi

Mumbai

3
4
5
6

Bengaluru
Hyderabad
Cochin
Ahmedabad

BWFS
Cambata
elebi
Cambata
elebiNAS
GlobeGround
MenziesBobba
BWFS
Cambata

FY13
x.x
x.x
x.x
x.x
x.x
x.x
x.x
x.x
x.x

FY14
x.x
x.x
x.x
x.x
x.x
x.x
x.x
x.x
x.x

FY15
x.x
x.x
x.x
x.x
x.x
x.x
x.x
x.x
x.x

Source:CAPAResearch,industrysources,AERA

2014CAPAIndia

155

CAPAIndiaGroundHandlingReport2014
INDIA

Airport

Groundhandlers

Varanasi

AirIndia

Nagpur

AirIndia

NAS

Amritsar

AirIndia

IndoThai

Srinagar

AirIndia

IndoThai

Guwahati

AirIndia

RudraAviation

NAS

IndoThai

Source:CAPAResearch

FindingsofCAPAsurveyongroundhandlingoperationsinIndia
Policyandregulations
Thegroundhandlingpolicywaspartiallyimplementedatthemetroairports,withairportoperators
selecting third party ground handlers through an international competitive bidding process. The
policyproposedtheexitofsubcontractorhandlingfirms.
Subcontracting plays a major role in the Indian ground handling industry. These subcontractors
provideeithermanpower.However,mostofthesecompaniesareverysmallinsize,withpresence
atonlyoneortwoairports.
The directive to end subcontracting has not been implemented and remains sub judice. Most PPP
airport operators were of the view that the policy should be fully implemented with some
modification.Table27collatestheviewsofairportoperatorsonthegroundhandlingpolicy.
Table27:Viewsofairportoperatorsonthegroundhandlingpolicy

Impact
category
Infrastructure
impact

2014CAPAIndia

Keyimpact

Improvedequipment
utilisation

Improvedstandardof
equipment

Remarks
Limitingthenumberofgroundhandling
operatorswouldimproveequipment
utilisation.
Theproposedpolicyallowsground
handlingfirmstoachievescaleintheir
operationsby:
limiting the number of licensed
groundhandlingfirmsattheairport
and;
prohibiting subcontracting of GH
activities.

172

CAPAIndiaGroundHandlingReport2014
INDIA

Labourlaws

Human
ResourceImpact

Safetyand
securityimpact

Improvedcompliancewith
labourlaws

Improvedqualityof
workforce

Reducedattrition

Increasedstaffutilisation

Enhancedsafety

Enhancedsecurity

Thisshouldinturnjustifytheinduction
ofmoreexpensiveIATAstandard
groundhandlingequipment.
Accordingtoseveralairportoperators,
subcontractorscommonlyviolatelabour
lawsbynotpayingbenefitsorforthat
mattertheminimumwageinorderto
supportalowcostbase.However,the
licensedgroundhandlersarebelievedto
complywithstatutoryrequirements.
Subcontractorsusuallyprovide
untrainedandunskilledlabourfor
groundhandlingactivities.Themoveto
licensedhandlersisexpectedtoresultin
greaterinvestmentintrainingandthe
developmentofahigherqualitylabour
force.
Subcontractorsusuallydeploy
temporarylabouranddonotfollow
standardHRpolicieswithrespectto
tenure.Withtheimplementationofthe
proposedpolicy,onlypermanent
workerswillbepermittedinground
handlingactivities.Employeeswill
benefitfromenhancedworkingterms
andconditionswhichinturnshould
lowertheattritionrates.
Withairlinesforcedtouseoneofthe
designatedhandlersatanairportrather
thanselfhandlingthisshouldresultin
moreefficientdeploymentofstaffas
resourcescanbesharedacrosscarriers.
Onlytrainedstaffwillbeallowedto
operateequipment.Licensedhandlers
areexpectedtohaveagreaterfocuson
occupationalhealthandsafetythanthe
currentsubcontractors.
Thegreaterdeploymentofpermanent
staff,employedbyahandfuloflicensed,
professionalcompaniesshouldimprove
theabilitytomonitorpersonnelfor
securitypurposes.Thecurrent
multiplicityofcompaniesemploying
itinerantandunskilledworkersfor
airsiderolesisunmanageable.

Source:CAPAResearch

2014CAPAIndia

173

CAPAIndiaGroundHandlingReport2014
INDIA

Table30:Proposedandapprovedcomprehensivetariffsforgroundhandlingofscheduled
passengeraircraftbyAISATS

Aircrafttype
CodeB
CodeC
CodeD
CodeE
CodeF

Domestic(INR)

International(INR)

Proposedcharges Chargesapprovedby
AERA
14,351
12,700
12,204
10,800
19,323
17,100
64,410
57,000
114,582
101,300

Proposedcharges

Chargesapprovedby
AERA
55,700
93,200
153,100
180,000
251,000

63,054
105,316
173,003
203,287
282,630

Source:CAPAResearch,AERA

Mumbaiairport
InFY14,thefollowingthreegroundhandlingfirmswereoperatingatMumbaiairport:

AirIndiaLimited
CambataAviationPvt.Ltd.
elebiNASAirportServicePvt.Ltd.
Table31belowprovidesAERAapprovedtariffsforscheduledpassengeraircraftservicedbyelebi
NASduringFY14attheairport.
Table31:Comprehensivetariffsforgroundhandlingofscheduledpassengeraircraft

Aircrafttype

Domestic(INR)

International(INR)

Paxterminal
services

Ramp
handling

Total

Paxterminal
services

Ramp
handling

Total

3,800
3,200
4,500
19,100
38,100

8,900
7,600
12,700
38,100
63,500

12,700
10,800
17,200
57,200
1,01,600

11,000
23,500
30,400
35,600
55,000

33,000
69,900
1,23,000
1,44,700
1,97,000

44,000
93,400
1,53,400
1,80,300
2,52,000

CodeB
CodeC
CodeD
CodeE
CodeF

Source:CAPAResearch,AERA
Note:CeilingratesareaspertheconcessionagreementwithMumbaiInternationalAirportPvt.Ltd.,dated14November
2008.Theseratesareexclusiveofgovernmenttaxesanddutiessuchasservicetaxandtheconcessionfeepayabletothe
airportoperator.

TheapprovedFY13tariffsforgroundhandlingservicesprovidedbyCambataAviationattheairport
forscheduledpassengeraircraftareprovidedbelow.

Aircrafttype
A320
737
A330
A340
747

2014CAPAIndia

International(INR)
123,200
134,400
196,000
151,200
173,600

180

CAPAIndiaGroundHandlingReport2014
INDIA

747200
747SP
767
777
A330600

209,440
173,600
176,400
154,000
173,600

Source:CAPAResearch,AERA
Note:Tariffsprovidedinthetableareinclusiveofroyaltiespayabletotheairportoperator.

Air India also provides ground handling services at Mumbai airport. It has submitted its tariff
proposal to AERA and the proposed rates are provided in Table 32. In its proposal, Air India has
proposed to retain existing tariffs for ground handling services for the entire control period. In
addition, it has stated that in case of any revision it will approach AERA. As Air India has not
proposedanyincreaseingroundhandlingcharges,AERAiscurrentlyconsideringthissubmissionof
AIfordeterminationoftariffsforgroundhandlingservicesprovidedbyitatMumbaiairport.
Table32:ProposedtariffsforgroundhandlingofscheduledpassengeraircraftbyAirIndia

Aircrafttype

Transit

A320/737
707/IL62/757
A330/A310/767/A330
747/A340/777

1,310
1,455
2,882
3,413

Turnaroundwithin4 Turnaroundbeyond
hours
4hours
1,799
1,999
3,914
4,665

2,008
2,231
4,432
5,279

Source:CAPAResearch,AERA
Note:NumbersareinUSD.
ForconversionofUSDintoINR,RBIreferencerateasonthefirstdayofthemonthforthefirstfortnightlybillingperiodand
therateprevailingasonsixteenthdayofthemonthforthenextfortnightlybillingperiodshallbeadopted.
Airportlevyandservicetaxwillbechargedadditionally
TimeIimitforuseofequipmentperflightisasfollows:
2hoursfortransitflights
2hours30minutesforturnaroundwithin4hours
3hoursforturnaroundbeyond4hours
Flightshandledbetween0001Hoursand0400Hourswillbechargeda15%peakhoursurcharge.Handlingincaseof
technicallandingforotherthancommercialpurposewillbecharged50%oftheaboverates,providedthereisnophysical
changeofload.
Handlingincaseofreturntorampwillnotbechargedextra,providedthataphysicalchangeofloadisnotinvolved.
Handlingincaseofreturntorampinvolvingaphysicalchangeofloadwillbechargedasforhandlingincaseofatechnical
landing
NoextrachargewillbeimplementedforprovidingtheservicesonSaturdays,Sundays,andpublicholidays.

Chennaiairport
During FY14, the following three ground handling firms provided ground handling services at
Chennaiairport.

AirIndia
BhadraInternationalIndiaLtd.
CambataAviationPvt.Ltd.

2014CAPAIndia

181

CAPAIndiaGroundHandlingReport2014
INDIA

AppendixE:Minimumandaveragewageratesofpersonnel
employedingroundhandling
Minimumwageratesforgroundhandlingstaffacrosssixmetros(inUSD)

City

ClassificationofLabourSkill
Skilled

Semiskilled

Unskilled

Delhi

x.xx

x.xx

x.xx

Mumbai

x.xx

x.xx

x.xx

Bengaluru

x.xx

x.xx

x.xx

Chennai

x.xx

x.xx

x.xx

Hyderabad

x.xx

x.xx

x.xx

Kolkata

x.xx

x.xx

x.xx

Source:CAPAResearch,numbersareinUSD/hour

Averagewageratesforgroundhandlingstaffacrosssixmetros(inUSD)

Role

Bengaluru

Chennai

Delhi

Hyderabad

Kolkata

Mumbai

Airside
Cabincleaning
Supervisor

Salary/month Salary/month Salary/month Salary/month Salary/month Salary/month

xxx
xxx
xxx
xxx
xxx
xxx

Staff

xxx

xxx

xxx

xxx

xxx

xxx

Ramp
Supervisor

xxx

xxx

xxx

xxx

xxx

xxx

Staff

xxx

xxx

xxx

xxx

xxx

xxx

BusDrivers

xxx

xxx

xxx

xxx

xxx

xxx

Baggagedrivers

xxx

xxx

xxx

xxx

xxx

xxx

Jetwayoperator

xxx

xxx

xxx

xxx

xxx

xxx

Marshals

xxx

xxx

xxx

xxx

xxx

xxx

Terminal
Gateagents
Supervisor

xxx

xxx

xxx

xxx

xxx

xxx

Staff

xxx

xxx

xxx

xxx

xxx

xxx

Porter

xxx

xxx

xxx

xxx

xxx

xxx

Source:CAPAResearch,numbersareinUSD/monthandonlyincludethecashcomponentofsalary(i.e.benefitsare
excluded)

2014CAPAIndia

193

CAPAIndiaGroundHandlingReport2014
INDIA

AppendixJ:FinancialAnalysisofground/cargohandlingfirmsat
Kolkataairport
AbleAviationIndiaPvt.Ltd.
Balancesheet(UnitsinUSDmn.)

YoYChange

Sourcesoffunds
Paidupcapital
Shareapplicationmoney(pendingallotment)
Reservesandsurplus
SecuredLoans
UnsecuredLoans
DeferredTaxLiabilities(Net)
Totalliabilitiesandequity
Applicationoffunds
Grossfixedassets(includingintangibleassets)
Less:depreciationandamortisation
NetFixedAssets
Capitalworkinprogress
Investment
Deferredtaxassets(Net)
Currentassets,loansandadvances
(a)Inventories
(b)SundryDebtors
(c)CashandBankBalances
(d)Othercurrentassets
(e)LoansandAdvances
Less:CurrentLiabilities&provisions
(a)CurrentLiabilities
(b)Provisions
NetCurrentAssets
Miscexpendituretotheextentnotwrittenoffor
adjusted
Profit&LossAccountDr.Balance
TotalAssets

FY10

0.185
0.000
0.023
0.013
0.000
0.000
0.221
0.000
0.220
0.066
0.153
0.000
0.000
0.000
0.000
0.000
0.239
0.007
0.000
0.021
0.000
0.201
0.000
0.068
0.000

FY09

0.185
0.000
0.017
0.018
0.000
0.000
0.220
0.000
0.201
0.038
0.163
0.000
0.000
0.000
0.000
0.000
0.209
0.027
0.000
0.010
0.000
0.189
0.000
0.056
0.001

FY08

0.019
0.000
0.006
0.028
0.076
0.000
0.128
0.000
0.111
0.009
0.102
0.000
0.000
0.000
0.000
0.000
0.069
0.005
0.000
0.003
0.000
0.052
0.000
0.026
0.001

FY10

0.0%
0.0%
37.5%
27.1%

0.7%

9.3%
75.8%
6.0%

14.6%
72.5%

121.2%

5.9%

20.6%
33.3%

FY09

900.0%
0.0%
206.5%
37.1%

71.2%

80.7%
299.9%
60.4%

202.7%
398.5%

202.8%

266.9%

115.7%
25.0%

0.000
0.221

0.000
0.220

0.000
0.128

0.7%

71.2%

Source:MCAfilings,CAPAresearch

RatioAnalysis

FY10

FY09

FY08

NetDebt/EquityRatio
CurrentRatio
QuickRatio
DebttoTotalAssetsRatio

2.7%
1.34
1.23
0.06

4.4%
1.30
1.24
0.08

412.5%
1.50
1.44
0.81

2014CAPAIndia

235

CAPAIndiaGroundHandlingReport2014
INDIA

AppendixP:Groundsupportequipmentwithselectdesignated
groundhandlingfirmsatIndianairports
elebiDelhiGroundHandlingDelhiAirport
GroundSupportEquipment

Quantity

AirStartUnit
AirConditioningUnit
AmbuLift
BaggageTrolley
ContainerDolly
Conveyor
ForkLift
GroundPowerUnit
Loader
PalletDolly
PushBack
Roller
StepLadder
ToiletCart
TowBar
TowTractor
Tractor
WaterCart
Total

xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
n/a
xx
xx
xx
n/a
xx
xx
xxx

Source:CAPAResearch,AERA

2014CAPAIndia

250