BREAKING and INCLUSIVE GROWTH in AVIATION May 2017

Narendra Modi Ministry of Civil Aviation Hon’ble Prime Minister Government of India Udan 3 YEARS OF PATH - BREAKING AND INCLUSIVE GROWTH IN AVIATION May 2017

MAJOR ACHIEVEMENTS

National Civil Aviation Policy 2016 – 1st comprehensive policy to accelerate growth of an integrated aviation ecosystem, India to be 3rd largest aviation market by 2022

Affordable Flying for all – Fall in average airfare by 18% in 2016 over 2015 making air travel affordable for everyone with unprecedented capacity enhancement in aviation system

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

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

UDAN – World’s first Regional Connectivity Scheme to connect un-served & under-served airports and boost regional tourism and economic growth; ensures affordable flying at ` 2,500 for an hour long flight

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

Robust Security Architecture – Ensuring fool-proof security without compromising on passenger convenience through stringent security audits and institutionalised mechanisms

Enhanced Skill Development – Clear focus to leverage India’s human capital potential and create job opportunities in the growing aviation sector

Innovation in Technology – Conceptualization and development of cutting-edge products and processes across aviation ecosystem to enhance efficiency NATIONAL CIVIL AVIATION POLICY 2016

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

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

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

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

Route Dispersal Guidelines (RDGs) rationalized and trading of Available Seat Kilometers (ASKMs) permitted AFFORDABLE FLYING FOR ALL Average airfare fell by 18% in 2016 over average airfare in 2015, making air travel affordable for everyone

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

Scheduled domestic flight movements during 2016 is 8.2 Lakh as against 7 Lakh movements in FY14, 8.2% CAGR growth

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

Cargo carried registered over 10% growth to 29.8 Lakh MT in FY16 from 25.3 Lakh MT in FY14 SIGNIFICANT IMPROVEMENTS IN PASSENGER CONVENIENCE AirSewa launched by the ministry to ensure convenient and hassle-free air travel experience

Over the last 3 years, number of passengers complaints per 10,000 pax fallen to 1.06, demonstrating 99.99% satisfaction level

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

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

Civil Aviation Requirements made more passenger friendly for air travel by Divyaang Jan

UDAN: REGIONAL CONNECTIVITY SCHEME

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

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

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

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

13 lakh new airline UDAN seats added anually under first round of UDAN for a Viability Gap Funding (VGF) of ` 205 Cr EASE OF DOING BUSINESS 100% FDI allowed in Domestic Scheduled Air Transport, Air Transport Services and Regional Air Transport and 100% FDI allowed under Automatic Route in Brownfield airport projects

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

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

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

Validity of initial NOC for Scheduled operators, Scheduled Commercial Operators and Non Scheduled Operators increased to 36 months ROBUST SECURITY ARCHITECTURE India’s compliance rate of ICAO security requirements at 99.59% and Effective Implementation at 99.23%

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

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

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

Anti–Hijacking Act enacted in 2016; Implementation of policy to facilitate transport/transfer of human organs at airports ENHANCED SKILL DEVELOPMENT 1st executive aviation course launched by India’s first aviation university – Rajiv Gandhi National Aviation University – in February 2017

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

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

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

Industry-collaborative initiatives taken to develop Apprenticeship Program for Aircraft Maintenance Engineers (AMEs) INNOVATION IN TECHNOLOGY Launched GAGAN1: India’s 1st satellite based navigation system to improve accuracy of air navigation services

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

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

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

Implemented e-office: Online file management system across the Ministry to enhance transparency, improve efficiency and reduce time lag

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

Aviation Industry: One of the fastest growing industries in India with over 13.1 Cr total departures in 1 FY17, registering a 20% y-o-y growth

Passenger Traffic: 3rd largest aviation market by domestic air passenger traffic which stood at over 10 Cr. 2 In FY17

Airports: 75 airports opened in 75 years of Independence while 33 new airports have been started in just 3 1 year

Airlines: Distance flown by Scheduled Operators rose to 17k Cr. Km (FY17) from 11.4k Cr. Km (FY14), 4 recording a 14.3% CAGR growth

Fleet Strength: ~500 aircrafts of scheduled Indian carriers ferrying year around; orders placed for more 5 than 650 new aircrafts Ministry of Civil Aviation Government of India

Cargo Traffic: Witnessing continuous expansion with total freight cargo at ~30 lakh MT1, recording a 6 10% growth from FY15

NSOPs: Undergoing strong revival, domestic non-scheduled passengers grew to 14.1 lakh (FY16) 7 registering a 6% growth

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

Diversified Human Capital Base: ~2 Lakh people are employed in various segments across aviation 9 industry with a possibility of significant expansion going forward

Ensuring hassle free travel: Incorporated systematic approaches to redress passenger grievances, and 10 improve operational efficiencies across the system

1 as on 31st March 2016 ONE OF THE FASTEST GROWING INDUSTRIES IN 17,008 INDIA 4961

11,404 395

Scheduled airlines: Scheduled aircrafts in operation Passenger Kilometres performed (Cr km) 15.9 4061

11.6 361

Total Passenger traffic : Non-scheduled aircrafts in operation Domestic and International (Cr.) 19.4 29.3

14.2 18.9

No. of aircraft hours flown (lakh hrs.)3 FY14 Cargo carried by Airlines3 (in lakh metric tonnes) FY 17 FAVOURABLE DYNAMICS

India’s strong GDP growth 7.1% in 2017

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

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

Strong policy support: NCAP

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

Source: DGCA; 1Provisional figures as of 31st March 2017; 2 31st March 2016; 3 of Scheduled operations of Indian airlines TOP INTERNATIONAL AND DOMESTIC ROUTES

TOP 10 INTERNATIONAL ROUTES TOP 10 DOMESTIC ROUTES

UAE MUM-DEL Singapore BLR-DEL KOL-DEL Saudi Arabia BLR-MUM Thailand MUM-GOA Qatar DEL-PUN Oman DEL-MAA UK DEL-HYD Malaysia MUM-MAA Sri Lanka DEL-GOA Hong Kong ti 0 1 2 3 0 2 4 6 8 Seats (in Lakhs) for March 2017 Seats (in million) for quarter ending Dec 2016 ti

The UAE constituted almost half of the total Business centers such as Mumbai, Delhi, international seats from India, primarily led Bangalore drive the passenger traffic by migrant workers and business market in domestically the Middle East Top 10 international routes comprise 77% of overall traffic

The UAE drives the international traffic from India while Mumbai to Delhi steers the domestic travel AROUND 16 CR PASSENGERS FLOWN IN FY17

HISTORICAL TREND OF INDIAN PASSENGER TRAFFIC

n 10.4

8.5 7 6.1 6.1 5.8 Domestic Passengers 5.4 (Crore) 4.5 4.4 4 International 3.6 Passengers (Crore) 5 5.5 4.3 4.6 3.5 3.8 4 2.9 3.2 2.3 2.7 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 INDIA HAS

SRINAGAR SOME OF THE 0.2 LARGEST AIRPORTS IN THE WORLD 25 31

5.8

DELHI

0.4 GUWAHATI 0.4 JAIPUR LUCKNOW 0.4

0.7 153 155

AHMEDABAD 0.2 1.6

INDORE KOLKATA

BHUBANESWAR

35 47 0.2

4.5 MUMBAI 156 169 0.7 1.5 0.2 PUNE HYDERABAD VISAKHAPATNAM Passengers traffic handled (crore) (FY17)#

0.7 GOA 2 112 130 ACI World Rankings

2.3 MANGALORE 1.8 CHENNAI Airport Airport BENGALURU 133 135 0.2 Ranking in Ranking in 2 2014 CALICUT 0.3 COIMBATORE 2015 0.2 COCHIN 0.9

0.4 TRIVANDRUM KEY ACHIEVEMENTS

For the 1st time, Operation & Maintenance contracts of Airport Terminal Buildings at Jaipur & Ahmedabad to be awarded under PPP route

701 airports connected under UDAN

Top 6 Airports* contributed 66% of total Indian passenger traffic in FY17

Delhi and Mumbai airports combinedly handle 10.3 Crore passengers in FY17

Increased focus on airport city & aerotropolis model to enhance non-aeronautical revenues

Source: AAI; # Footfalls accounted for passenger traffic; *6 airports are Mumbai, Delhi, Hyderabad, Bengaluru,Chennai & Cochin; 131 currently served, 27 unserved, 12 under served; 2 Airports Council International (ACI) World Rank 2015 DOMESTIC MARKET KEY INDUSTRY PLAYERS

On- 1 Time Performance (OTP) at 4 metro airports ti

% 88.5 90 87.4

88 84.9 85.4 85.2 83.9 86 83.3 82.4 84 82

82 80.4 79.3 80 78.7

72 Air India Go Air Jet Airways Vistara Spice Jet Indigo

2016 2017 AIRLINES SCALING NEW HEIGHTS

Passenger Load Factors (PLF) of various Scheduled Domestic % Airlines 100 91.4 93.4 87.890.1 86.9 84.8 84.7 82.2 83.6 81.6 83.3 82.8 80.2 79.2 79.8 78.7 80 74.6 76.0 74.6 74.6 64.8 66.7 60 40 20 0

Mar-17 Apr-17

Source: DGCA; 4 metro airports include Bengaluru, Delhi, Hyderabad, Mumbai 1 FLEET STRENGTH 600 496 (10.7%) 500 448 (9.5%) 395 409 378 383 378 (3.5%) 381 355 (4.5%) 400 (-0.8%) (1.3%) 340 (6.5%) (4.4%) (-11.2%) 300 ( ) - % Growth No. of Aircrafts of No. 200

100

0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

16.9 18 AIRCRAFT UTILISATION (12.7%) 15 14.6 16 14.3 (4.9%) (8.1%) 13.5 13.1 (9.2%) 14 12.5 (8%) 12.1 (-10.3%) (3.3%) 11.4 (6.1%) 12

8 ( ) - % Growth

Aircraft Hours flown(Lakh hrs.) hrs.) flown(Lakh Hours Aircraft 2

0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

*Average Seat Capacity= Total ASK flown/ Total Aircraft Km. Flown.; * FY17 provisional figures INDIAN SKIES HAVE ~500 AIRCRAFTS FERRYING YEAR ROUND

Over 8.1 lakh scheduled domestic aircraft movements in FY17*, 16% growth over FY16

About 1.4 lakh scheduled international aircraft movements of Indian airlines in FY17*, 9.7% growth over FY16

654 new aircraft orders placed by Domestic carriers

Over 3,763 hours flown per aircraft, increase of 3% from 3,668 in FY15

Source: DGCA; *Provisional FY17 data for Scheduled Operators HISTORICAL TREND OF FREIGHT TRAFFIC Freight Traffic carried by Scheduled Carriers

20 18.6 18 16.6 16 15.0 14.7 14.4 15.4 14.1 14 12.7 12 11.5 11.5 10.5 11.2 10 9.9 8.5 8.4 8.1 7.8 8 6.9 6 5.7 5.5 Freight Cargo (in Lakh Metric Tonnes) 4

0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Domestic International CARGO TRAFFIC WITNESSING EXPANSION Regional Connectivity Scheme to boost air cargo growth, regulations to ease business and development of multimodal cargo hubs

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

Advisory issued on service level standards leading to reduced dwell time

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

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

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

Source: AAI, DGCA NON-SCHEDULED OPERATORS

450 409 412 406 393 400 370 366 361 350 327

300 272

250 229

200 183 156 147 134 150 122 127 125 120 126 123 99 100 66 56 44 50

0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 No. of Operators No. of Aircrafts* Market Share

Others 20.1% Out of the total 54

non-scheduled Pawan Hans MAJOR NON-SCHEDULED Heligo Charters 43.7% Helicopter operators, 9.1% OPERATORS top 3 operators accounted for 80% of Global Vectra the total number of 27.1 % flights operated in FY16 NSOP UNDERGOING STRONG REVIVAL

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

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

India’s 1st dedicated Heliport launched at Rohini in Delhi in FY17

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

Source: DGCA;* In areas other than controlled airspace AIRPORTS GOING GREEN

Chandigarh Airport

Delhi Airport

Jaipur Airport

Daily generational capacity through Solar Power making it Kolkata Airport absolutely power neutral airport Vadodara Harni Airport Certiﬁcation for green buildings, rooftop solar power generation, sewage treatment plants, rain water harvesting facilities

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

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

Tirupati Bengaluru Airport Airport

Cochin International Airport INDIA’S COMMITMENT TO GREENER AIRSPACE

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

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

Certiﬁcation for green buildings, rooftop solar power generation, sewage treatment plants, rain water harvesting facilities AAI was conferred 2 prestigious SKOCH BSE Award for

Commissioned construction of large solar power plants to Environmental Protection (Green Technology) for save on total expenditure by almost one – third and Chandigarh Airport Project in FY17 reduced carbon footprints

Incorporated advance advanced security systems, energy-saving cooling mechanism, rainwater harvesting Solar PV Policy: Government targets 146 MW solar energy set-up & super sensitive ﬁre safety alarm across all airports;12.65 MW generated by AAI till March 2017

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

Source: AAI Airports India Business Magazine April June 2017, *under PSU category, Categories: Two Hundred Projects of India & Top Thirty Projects of India HUMAN CAPITAL BASE Total Employees across Aviation Sector : ~2 Lakh Major Employment Segments

Number of employees (in ‘000) No. of personnel (in '000) 2015 2015

MRO 1 No. of personnel Job Roles (in ‘000) 2015 Terminal and Airside Airports (including 28 ANS and CNS) Ground Handling 33 Airside Management 14 Cargo 71 Flight and Cabin Crew 11 Ground Handling 35 MRO(Airlines) 11 CNS & ATC 7

Pilots and Co pilots 5 Airlines 55 Aircraft Maintenance 0.5 Engineers DEVELOPING HUMAN RESOURCE POOL f Setting up of Rajiv Gandhi National Aviation University to offer graduate and higher level degree courses in aviation

On 26th Feb’17, 1st all-women flight operated around-the-globe by Air India India has 51 DGCA approved AME training institutes & 29 DGCA approved flying training organizations

5571 Commercial Pilot Licenses issued in FY17

4601 Airline Transport Pilot Licenses issued in FY17

Source: Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector, 2016 ; 1 DGCA Provisional figures AirSewa Launch of AirSewa, an integrated portal through web (airsewa.gov.in) and a mobile app for both android and iOS platforms 1st time brought together all stakeholders of aviation sector on one platform Single-platform mechanism for customer grievance redressal, integrated back-office operations, flight status/schedule information, airport Information & FAQs Passengers can easily track Aircomplaint Sewa status of grievances, provide feedback & rate overall experience & satisfaction level

Project DISHA Largest airport transformation efforts taken by AAI in 10 airports 10 airports are Chennai, Kolkata, Lucknow, Varanasi, Coimbatore, Bhubaneshwar, Goa, Trivandrum, Pune, and Guwahati; constitute almost 60%3 of total AAI traffic DISHA envisions enhancing non aeronautical revenue through fixture of basic airport facilities and systematic capacity building in airport infrastructure through best in class business processes Implementation of DISHA has led to operational efficiency, improving customer service and travel experience in these airports ENSURING HASSLE FREE TRAVEL

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

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

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

* From 26 Nov 2016 to 16 May 2017; 1 DISHA – Driving Improvements in Service and Hospitality at Airports; 2 Queuing time in entry, check in, and security; 3As per 2015-16 passangers traffic Major Facts Region-wise

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

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

Srinagar Airport Vadodara Airport Ministry of Civil Aviation Government of India

Southern Region: Recorded a CAGR of 18% in passenger traffic, 14% in Air Traffic Movements, and 7% 3 in Freight traffic in the two years

Eastern and North Eastern Region: Recorded a CAGR of 23% in passenger traffic, 13% in Air Traffic 4 Movements, and 9% in Freight traffic in the two years

Hyderabad Airport Kolkata Airport

NORTHERN REGION

UDAN scheme launched from Shimla to Delhi route in April 2017

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

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

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

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

1includes only Khajuraho and Gwalior

WESTERN REGION

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

Inauguration of New Terminal buildings at Vadodara and Goa

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

Tendering process for award of Navi Mumbai International Airport completed

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

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

SOUTHERN REGION

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

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

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

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

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

1 Coimbatore CUDCT operational before 2014

EASTERN AND NORTH EASTERN REGION

Construction of 3 new Hangars in Guwahati airport

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

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

Common User Domestic Cargo Terminal (CUDCTs) operationalised at Kolkata, Bagdogra, Raipur, Bhubaneshwar and Ranchi Ministry of Civil Aviation Government of India

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