airports

World class are coming up everywhere, from the south in Thiruvananthapuram to New in the north. The changes are no longer cosmetic, the entire look and feel transport you to a world that is glitzy and shimmering in concrete and glass – the future airports are here!

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Reforms, Tech adoptions for Future fly high Airports!

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Construction Times looks into the present scenario at Airports, and explores the elements of future-ready airports from perspective of its infrastructure development, the Public-Private Partnership (PPP), terminal design and construction, and advanced technology adoptions for better quality and a user-perspective angle with a take from stakeholders.

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Trichy new Terminal Construction.

ust a few years ago the T3 terminal—the world’s The civil aviation industry in has emerged as second largest integrated airport terminal—was one of the fastest growing industries in the country opened at ’s IGI airport. At 1.2 km from during the last three years. India has become the end to end, it is the largest public building cons third largest domestic aviation market in the world J ructed since India gained independence from and is expected to overtake UK to become the third the British Empire. And now, the airport revolution largest air passenger market by 2024. has airlines travelers in thrall, and the big player is the According to ibef.org, India’s passenger traffc AAI. World class airports are coming up everywhere, stood at 115.37 million in FY21. Domestic passenger from the south in Thiruvananthapuram to New Delhi and international passenger traffc declined at a CAGR in the north. The changes are no longer cosmetic, of -9.02% and -28.64%, respectively, from FY16 to the entire look and feel transport you to a world that FY21, owing to COVID-19-related restrictions on is glitzy and shimmering in concrete and glass – the fights in FY21. In FY21, airports in India pegged the future airports are here – with focus on design and domestic passenger traffc to be ~105.2 million, a construction , Safety & Surveillance and Technology 61.7% YoY decline, and international passenger adoptions assuring better user experience and traffc to be ~10.1 million, an 84.8% YoY decline, quality . The Government’s new PPP (public private over the fscal year ended March 31, 2020. In March partnership) policy and determination to involve more 2021, the average daily passenger traffc stood at of the private sector in India’s infrastructure growth 546,702.90. Between FY16 and FY21, freight traffc story, the PSU continued to remain a public partner. declined at a CAGR of -1.77% from 2.70 million Notwithstanding the slight overall setback, AAI turned tonnes (MT) to 2.47 MT. Freight traffc on airports to the other large airports, including the second line. in India has the potential to reach 17 MT by FY40. In time, in addition to Chennai and Kolkata airports, Aircraft movement declined at a CAGR of 35 other metro airports were identifed by the AAI -7.79% from 1.60 million in FY16 to 1.20 million with a view to making them world class. in FY21. From FY16 to FY21, domestic aircraft

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movement decreased at a CAGR of -6.44% and virtual ceremony. The fight operations at international aircraft movement declined at a CAGR airport will commence on March 28, 2021 under the of -18.52%. India’s domestic and international Regional Connectivity Scheme – Ude Desh Ka Aam aircraft movements reached 1,062 thousand and 135 Nagrik (RCS-UDAN). thousand, respectively, in FY21.The expenditure of On February 25, 2021, the Airports Authority Indian travellers is expected to grow to Rs. 9.5 lakh of India (AAI) issued tenders for construction of the crore (US$ 136 billion) by 2021. frst phase of an international airport at in To cater to the rising air traffc, the Government , entailing an investment of Rs. 987 crore of India has been working towards increasing the (US$ 135.07 million). The new facility is being set up number of airports. As of 2020, India had 153 in greenfeld city under the Delhi–Mumbai Industrial operational airports. India has envisaged increasing Corridor (DMIC) project at Dholera. the number of operational airports to 190-200 by On January 19, 2021, the Airport Authority of FY40. India (AAI) signed a concession agreement with Further, the rising demand in the sector has for three airports—Jaipur, Guwahati pushed the number of airplanes operating in the and Thiruvananthapuram. The concession period is sector. The number of airplanes is expected to reach 50 years from the date of commercial operations. 1,100 planes by 2027. On December 21, 2020, IndiGo announced that it has collaborated with Urban Drive car rental Investment company to offer self-driven and chauffeur driver According to the data released by Department services across 60 Indian cities. for Promotion of Industry and Internal Trade (DPIIT), In October 2020, Zurich Airport International FDI infow in India’s air transport sector (including air signed the concession agreement for the freight) reached US$ 2.88 billion between April 2000 development of Airport on the outskirts of and December 2020. The government has allowed Delhi. The agreement has granted Zurich Airport 100% FDI under the automatic route in scheduled International the licence to design, build and operate air transport service, regional air transport service International Airport (NIAL) for the next 40 and domestic scheduled passenger airline. However, years. FDI over 49% would require government approval. In October 2020, the Airports Authority of India India’s aviation industry is expected to witness Rs. (AAI) announced plan to upgrade runways at seven 35,000 crore (US$ 4.99 billion) investment in the airports across the country by March 2022. next four years. The Indian Government is planning In January 2020, IndiGo became frst Indian to invest US$ 1.83 billion for development of airport carrier to have an aircraft feet size of 250 planes and infrastructure along with aviation navigation services became the frst airline to operate 1,500 fights per by 2026. day. Key investments and developments in India’s AAI plans to invest Rs. 25,000 crore (US$ 3.58 aviation industry include: billion) in next the fve years to augment facilities and In April 2021, Boeing, an aircraft manufacturer, infrastructure at airports. announced that it has partnered with the Indian UK group to invest Rs. 950 crore (US$ 135.9 Aviation Academy (IAA) and the University of million) in Turbo Aviation's new airline TruStar. Southern California (USC) to conduct safety management system training sessions for all Government Initiatives stakeholders in the domestic aviation industry. On May 08, 2021, AAI commenced commercial In March 2021, the Indira Gandhi International operations at —’s 15th (IGI) Airport in Delhi announced a key expansion airport and ’s 7th airport. project to increase its passenger handling capacity. In March 2021, on the launch of the ‘Azadi Ka The expansion project includes a new terminal, Amrit Mahotsav (India@75)’ by the Government advanced facilities, an additional runway and of India, the Ministry of Civil Aviation (MoCA) has improved capacity to handle more passengers. proposed 392 routes under the UDAN 4.1 bidding In March 2021, the government announced plan process. to set up two water aerodroames in Assam and four The Airport Authority of India plans to abolish water aerodromes in Andaman & Nicobar Islands royalty and offer steep discounts in lease rent to this year to boost tourism and connectivity. encourage MRO units to set up facilities at its airports. In March 2021, the government submitted a The government is planning to start 14 more proposal to develop a water aerodrome project at water aerodromes across the country, after the the Ujjani Dam, under the Ministry of Civil Aviation’s successful launch of seaplane service by Prime UDAN-RCS (regional connectivity scheme). Minister, Mr. , between the Statue On March 25, 2021, Union Minister of Civil of Unity near Kevadiya in Gujarat's Narmada district Aviation inaugurated the and Sabarmati Riverfront in in October , , , in a 2020. www.constructiontimes.co.in CONSTRUCTION TIMES 19 c OVER StorY - Airports

Chennai International Airport in India.

In November 2020, the services abroad. MoCA has put special emphasis announced that it is likely to increase the total number on making India the Global MRO Hub and in line of allowed domestic fights to 75% of the pre- with this philosophy, Government has already taken COVID-19 levels, as it expects a rise in passenger steps to rationalize the tax regime on MRO services numbers due to the festive and holiday season. to ensure a level playing feld for Indian MROs to In September 2020, the Government of India compete at the international level. Given our pool sanctioned Rs. 108 crore (US $ 14.73 million) of trained human capital in the MRO sector in the for Jagdalpur, Ambikapur and Bilaspur airports in country, I am sure we will be able to compete with Chhattisgarh under the UDAN scheme for upgrade the best and deliver high quality service to the airlines and development. around the globe. It is only a matter of time.” Under Union Budget 2021-22, the government He further added, “Digital transformation in lowered the custom duty from 2.5% to 0% Airport is an evolving process. AI is used for Facial on components or parts, including engines, for recognition to identify passengers at automated gates manufacturing of aircrafts by public sector units of the and various checkpoints. AI is also used extensively in Ministry of Defence. CCTV footages for face recognition, person tracking, Under Union Budget 2021-22, the Indian threat identifcation, vehicle tracking, number plate government expanded the scope for ‘Krishi Udaan’ recognition etc. Another area is the adoption of in convergence with Operation Green Scheme, Digital way fnding technology which can guide wherein air freight subsidy of 50% for agri-perishables the passenger throughout his or her transit via a would be provided to North East states and 4 smartphone. IoT can be used for assisting passengers Himalayan states/UTs. The expansion of product- with indoor navigation using Wi-Fi beacon-lined coverage will boost the ‘Krishi Udaan’ scheme and maps. IoT technology will also help to track the improve air cargo transportation from these states. vehicle locations in airport areas (such as tarmac In February 2019, the Government of India transfer buses) and tracking of location of various sanctioned the development of a new greenfeld service equipment. Sensors will transmit data such airport in Hirasar, Gujarat, with an estimated as equipment breakdowns to alert operations to investment of Rs. 1,405 crore (US$ 194.73 million). respond to those issues in future.” Regional Connectivity Scheme (RCS) has been Nirmal G. Humbad, Managing Director, launched. Dorsch Consult India Pvt. Ltd., said, “Increased usage of advanced technologies will help not only to The uplift… S. Suhas – IAS, Managing Director, Cochin International Airport, said, “Indian carriers are spending huge sums, close to $ 1.25 billion, on MRO

Nirmal G. Humbad Managing Director Dorsch Consult India

the effciency of airports but also to the passenger S. Suhas comfort. Ultimately, PPP will be more feasible with IAS, Managing Director Cochin International Airport usage of advanced and tested technologies. Along with adaptation of smart technologies, airports

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should be planned & developed with modular approach i.e. ability to expand with increase in traffc volumes from brick and mortar point of view and from digital capabilities point of view.” Speaking about the government’s intention to Siddharth Mishra make India a global hub for Aircraft Maintenance, Chief of Marketing and Sales Repair and Overhaul (MRO) services, Joeri N. Tata Steel Tubes Division Aulman MSc, Region Manager, NACO Netherlands Airport Consultants - a company of Royal of Marketing and Sales, Tata Steel Tubes Division HaskoningDHV, said, “We recognize this ambition , said, “Incorporating advanced construction technology into practice will help to achieve higher level of quality, effciency safety and sustainability. Advanced construction technologies are suggested Joeri N. Aulman MSc for important infrastructure projects where project Region Manager timeline is critical. Steel in combination with other NACO Netherlands Airport innovative materials like Tensile Fabric can be used Consultants - a company of in multiple elements of Airport Structures. Robotic Royal HaskoningDHV based fabrication methods should be encouraged for higher precision and faster execution. Various Project for in The Netherlands a similar initiative has been Management software and tools should be adopted taken under the brand 'Maintenance Valley', where for improved planning and timely execution of the different industry players come together to pool their project.” expertise on MRO for both military and civil aviation. Dr. S.K. Mohanty, Managing Director, SM This makes absolute sense and we look forward Consultants India, said, “The UDAN scheme is an to sharing our experience in the planning, design and engineering of integrated aircraft maintenance clusters to help India achieve its ambitions.” He further added, “The key to success for airports taking part in the UDAN Regional & International Connectivity Scheme is to make the challenging Dr. S.K. Mohanty business case work; Challenging cash-fows from low Managing Director SM Consultants India passenger numbers in the initial phase should not be burdened by high terminal development costs.” Anand Sharma, Founder & Partner, Design ambitious project to develop new/existing airports Forum International, said, “Maintenance or upkeep and to add new regional fight routes. However much of tax payers money is pumped to subsidize the scheme. This may need to be taken up on cost to cost basis. The airports under UDAN scheme should be decided on the basis of traffc generation. The system needs to be founded on a self- Anand Sharma sustenance mode. Subsidy should not be provided Founder & Partner by Government rather the operators should be Design Forum International provided with some leased properties or land to has to be close to the market, catering to the entire recover part of operation cost.” aviation industry. As the bulk of the traffc shifts to this Ashish P. Dhakan, MD & CEO, Prama Hikvision part of the world- India and South Asia, it is intrinsic India Pvt. Ltd., said, “The safety and security of for the maintenance hub to follow the trend & locate itself in the proximity of domestic aviation industries where most of their customers are. It also helps a lot that there is a substantial amount of trainable young workforce available in India, which Ashish P. Dhakan gives a suffcient human resource much needed to MD & CEO create a facility like that. One way of capitalising on Prama Hikvision India the demographic dividend of the youth that India has to offer & skill that dividend and use it for catering to airports is something that all the stakeholders of the one of the largest growing aviation markets.” aviation industry are deeply concerned, even after Speaking about the adoption of advanced 15 months of the pandemic situation. A robust multi construction technologies aiding the transformation layered security, health and safety process can help of airports for the future, Siddharth Mishra, Chief the passengers.

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