Contents CHAPTER PAGE NO. 1 Highlights 3 2 Ministry of Civil Aviation 13 3 Directorate General of Civil Aviation 21 4 Bureau of Civil Aviation Security 29 5 Commission of Railway Safety 33 6 Indira Gandhi Rashtriya Uran Akademi 36 7 Airports Authority of India 40 8 Air India Limited 59 9 Indian Airlines Limited 69 10 Pawan Hans Helicopters Limited 92 11 Hotel Corporation of India Limited 97 12 Women Welfare 99 2 MINISTRY OF CIVIL AVIATION Highlights 1 1.1 The year witnessed significant opening up of flights to 18 other destinations in India, viz., of Indian skies paving the way for increased Patna, Lucknow, Guwahati, Gaya, Varanasi, international connectivity to/from India. A Bhubaneshwar, Khajuraho, Aurangabad, Goa, significant opening up took place in our air Jaipur, Port Blair, Cochin, Thiruvananthapuram, services arrangements with Sri Lanka and 10 Calicut, Amritsar, Vishakhapatnam, Ahmedabad ASEAN countries. Tourist charter guidelines were and Tiruchi. also liberalised and for the first time private • Sri Lanka Indian operators were allowed to fly on interna- In view of the strategic importance of our rela- tional route. All these are alongside the increase tions with Sri Lanka, the designated airlines of Sri in entitlements through normal process of bilat- Lanka will be allowed to operate daily services to eral consultations with various countries. The Delhi, Mumbai, Chennai, Bangalore, Hyderabad overall impact, one might say, is first but firm and Kolkata and as many services as they wish, to steps towards revolutionising the Indian skies. 18 other destinations in India, viz., Patna, The major initiatives taken during this year are:- Lucknow, Guwahati, Gaya, Varanasi, • ASEAN countries Bhubaneshwar, Khajuraho, Aurangabad, Goa, With a view to enlarging our economic co- Jaipur, Port Blair, Cochin, Thiruvananthapuram, operation with ASEAN countries, it has been Calicut, Amritsar, Vishakhapatnam, Ahmedabad decided that designated airlines of 10 ASEAN and Tiruchi, subject to reciprocal rights of equal countries will be allowed to operate upto 7 flights to Indian carriers. services to/from four metropolitan cities of New • Private Airlines Delhi, Mumbai, Chennai and Kolkata, subject to It has been decided to allow private airlines of equal reciprocal rights to the Indian side and on India to operate to all the SAARC countries existing terms of commercial agreement with our against unutilised Indian entitlements. Jet national carriers. Airways and Air Sahara have already commenced Designated airlines of ASEAN countries will also operation to Sri Lanka and are in the process be allowed to operate as many services as they of commencing operation to Nepal and wish, subject to reciprocal rights of equal number Bangladesh. 3 ANNUAL REPORT 2003-2004 • • Bilateral Policy Indian passport holders have also been allowed to It has been decided to permit airlines of all travel on inbound inclusive tour charters. There countries having bilateral Air Services Agreements shall also be no restriction on frequency of flight with India to operate 7 flights/week each to any and size of the aircraft in respect of outbound two of the 12 international airports in India inclusive tour charters provided the concerned subject to reciprocal rights being granted to the outbound tour operator also organises inbound Indian carriers. charters with 2 : 1 tourist ratio between inbound • Signing of New Air Services Agreement and outbound operations. A new Air Services Agreement (ASA) was signed • Open Sky Policy th with Djibouti in New Delhi on 19 May, 2003. To take care of the peak season rush, like in the The agreed text of an ASA with Tunisia was also previous years, an Open Sky Policy was adopted initialed on 14.2.2004 in Tunis. The total number by the Government for the winter 2003-04, of countries having Air Service Agreement with under which designated foreign airlines operated India now stands at 99. additional services to/from India subject to the • Review of Traffic Rights existing terms of the commercial agreement with Availability of traffic rights for operations of air Air India/Indian Airlines. services to/from India was also reviewed as part of the on-going process of bilateral civil aviation 1.2 ROADMAP FOR THE NEW consultations with various countries viz. South NATIONAL CIVIL AVIATION Korea, Malaysia, Turkey, Italy, Gulf air owner POLICY States, UAE (Dubai), Thailand, Ukrain, Slovakia, A five member Committee under the Chairman- Kyrgyzstan, Bhutan, Germany, Poland, Russia, ship of Shri Naresh Chandra, former Cabinet South Africa, Pakistan, Sri Lanka, Ethiopia, UAE, Secretary was constituted on 21.7.2003 to prepare Tunisia, Italy, Slovak Republic and Germany. a roadmap for the new National Civil Aviation • Resumption of air links with Pakistan Policy. The Committee submitted its report on During the technical level talks with Pakistan held 8.12.2003. The report was examined by the on 1.12.2003, both sides agreed to resume air Ministry. A draft Civil Aviation Policy has been services between the two countries from 1.1.2004. proposed and is under active consideration of the Pakistan International Airlines commenced their Government. operations to India from 1st January, 2004. Indian Airlines commenced operations to Pakistan from 1.3 AMENDMENT OF AAI ACT 1994 9th January, 2004. • Charter Policy The Airports Authority of India (Amendment) Tourist charter guidelines have been further Act, 2003 authorises AAI to transfer the opera- liberalised by permitting operation of ‘Inclusive tions and management of its existing airports by Tour Charters’ with no limitation on frequency, way of long-term lease to private players. The size of the aircraft and points of call subject to the Act, inter-alia, provides for exclusion of private 4 availability of customs and immigration facilities. airports like Bangalore International Airport Ltd. MINISTRY OF CIVIL AVIATION (BIAL) from the ambit of AAI Act, except secu- pation in construction of greenfield airports. rity and ATC functions, which will continue to be Airports Authority of India (Amendment) Act, discharged by AAI. The Act also authorises AAI 2003, inter alia, empowers AAI to levy Advanced to charge Advance Development Fee (ADF) for Development Fee (ADF) at the existing airport(s) the development/ upgradation of existing airports to help in financing the proposed new greenfield and for the setting up of greenfield airports. In airport(s). addition, the Act also seeks to prevent and remove Concession Agreement between Government of encroachment on airport land. India and Bangalore International Airport Lim- ited (BIAL) has been approved. Some issues 1.4 RESTRUCTURING OF DELHI AND raised by BIAL on Concession Agreement have MUMBAI AIRPORTS been examined in consultation with the Depart- On 11th September 2003, Government decided to ment of Legal Affairs. restructure the airports of Delhi and Mumbai 1.6 WITHDRAWAL OF IATT through joint venture route. An Empowered Group of Ministers (EGOM) was constituted to In a landmark decision aiming to make air travel decide about the detailed modalities including the cheap and affordable to the travelling public, design parameters, bid evaluation criteria etc. for Government has withdrawn the Inland Air Travel the selection of joint venture partner. The meet- Tax (IATT) w.e.f. 9th January, 2004 on all types of ings of EGOM were held under the chairman- domestic journeys. ship of the Finance Minister, in which draft Terms 1.7 REDUCED VERTICAL of Reference for the EGOM and selection of SEPARATION MINIMA [RVSM] Financial Consultant for Delhi and Mumbai airports were finalised. M/s. ABN-AMRO was Reduced Vertical Separation Minima (RVSM) has selected as the Financial Consultant. Request for been introduced in the Indian and the surround- Expression of Interest (EOI) has also been adver- ing airspace from 27th November 2003. This tised by AAI on 18th February, 2004. The closing facility provides the airline operators the most date for submission of EOI is now 20.7.2004. fuel-efficient cruising levels and reduced conges- Selection of Global Technical Advisor (GTA), tion thereby enhancing the airspace capacity. All appointment of Legal Consultant and Accounting airline operators having RVSM capable modern & Tax Advisor (ATA) is the project is under aircraft, have heralded this decision. process. 1.8 HAJ 2004 1.5 GREENFIELD AIRPORTS Phase-I of Haj 2004 commenced on 24.12.2003 Policy on airport infrastructure already provides and ended on 26.1.2004. 71,716 Haj pilgrims for private sector participation for the develop- were uplifted from India by Air India, Indian ment of greenfield airports. In the budget speech Airlines and Saudi Arabian Airlines to Jeddah for of 2002-2003, Government announced a package performing Haj pilgrimage from Bangalore, of concessions to encourage private sector partici- Kolkata, Calicut, Lucknow, Chennai, Nagpur, 5 ANNUAL REPORT 2003-2004 Jaipur, Ahmedabad, Mumbai, Delhi, Hyderabad, airports / landing strips damaged by floods / Gaya and Srinagar. There are 13 embarkation earthquake etc.” as the emergency response / support points for uplifting Haj pilgrims. Jaipur is a new aspect in respect of the Ministry of Civil Aviation embarkation point. In Phase-II of Haj 2004 and requested this Ministry to prepare a Contingency pilgrims were carried back from Jeddah to India Plan in this regard. In accordance with the by Air India, Indian Airlines and Saudi Arabian guidelines of Ministry of Home Affairs, a Airlines from 4th to 7th March 2004. comprehensive “Contingency Plan to repair airports / landing strips damaged by floods / earthquake etc.” 1.9 MODERNISATION/ was prepared in consultation with Airports DEVELOPMENT OF AIRPORT/ Authority of India and was put in place. The ATM SYSTEMS objective of this plan is to rehabilitate operational As part of the ongoing modernisation and devel- pavements and buildings in the event of natural opment of various airports, state-of-the-art calamities in order to assure continuity or early Instrument Landing Systems Air Traffic Manage- resumption of services.