2016

COMPREHENSIVE SKILL GAP ANALYSIS

AND FUTURE ROAD MAP FOR SKILL

DEVELOPMENT IN CIVIL AVIATION

SECTOR

Final report

Submitted by

ICRA Management Consulting Services Ltd. (IMaCS)

REGISTERED OFFICE: 1105, Kailash Building, 11th Floor, 26, Kasturba Gandhi Marg, New Delhi - 110 001 Tel.: + (91-11) 23357940-50 Fax: + (91-11) 23357014 CORPORATE OFFICE: Logix Park, 1st Floor, Plot No. A4 & A5, Sector - 16, Noida – 201 301 Tel: +91 120 4515 800 Fax: +91 120 4515 850 E-mail: [email protected] Website: www.imacs.in CIN: U74140DL2004PLC131454

Final Report

Disclaimer

All information contained in this document has been obtained by IMaCS from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and IMaCS in particular, make no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and IMaCS shall not be liable for any losses incurred by users from any use of this document or its contents in any manner. Opinions expressed in this document are not the opinions of IMaCS’ holding company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been issued or are to be issued by any entity.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 2

Final Report Contents

1. Executive Summary ...... 15 2. Background to the Study...... 26 2.1. Context ...... 26 2.2. Civil aviation in India ...... 29 2.3. The Indian Civil Airspace ...... 32 2.4. Key Drivers of Growth of Indian Aviation Market ...... 33 2.5. Impact on Economy ...... 34 2.6. Highlights of the Draft Civil Aviation Policy 2015 ...... 36 2.7. Human resource scenario in the civil aviation sector ...... 38 2.8. Objective of the Study ...... 38 2.9. Scope of Services...... 38 2.10. Report Structure ...... 41 2.11. Study Limitations ...... 41 3. Segment- Airport...... 42 3.1. Segment & Sub-Sector Analysis ...... 43 3.1.1. Global Perspective ...... 44 3.1.1.1. Traffic Trends ...... 46 3.1.1.2. Passenger Traffic ...... 46 3.1.1.3. Freight Traffic ...... 47 3.1.1.4. Airport Economics ...... 47 3.1.1.5. Growth Trends ...... 48 3.1.2. Indian Perspective ...... 48 3.1.2.1. Traffic Trends at Key Airports ...... 51 3.1.2.2. Economy ...... 52 3.1.2.3. Growth Trends ...... 53 3.2. Employment Structure and Skill Requirement Analysis ...... 54 3.2.1. Airside analysis ...... 61 3.2.1.1. Airside management function ...... 61 3.2.2. Terminal analysis ...... 64 3.2.2.1. Terminal management function ...... 64

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 3

Final Report

3.2.2.2. Cargo terminal management ...... 68 3.2.2.3. Engineering and Maintenance ...... 71 3.2.2.4. Safety and Security...... 75 3.2.2.5. Air Navigation Services...... 78 3.2.2.6. Air Traffic management ...... 79 3.2.2.7. Communication, Navigation and Surveillance (CNS) ...... 82 3.2.2.8. Career progression ...... 84 3.2.2.9. Summary – airport segment critical job roles ...... 85 4. Segment- Airlines ...... 87 4.1. Segment & Sub-Sector Analysis ...... 88 4.1.1. Global Perspective ...... 89 4.1.1.1. Commercial Airlines ...... 89 4.1.1.2. General Aviation (GA) ...... 90 4.1.1.3. Growth Trends ...... 90 4.1.2. Indian Perspective ...... 91 4.1.2.1. Commercial Airlines ...... 91 4.1.2.2. General Aviation ...... 93 4.1.2.3. Main Players and Market Share in the industry ...... 93 4.1.2.4. Trends ...... 94 4.2. Employment Structure and Skill Requirement Analysis ...... 96 4.2.1. Context ...... 96 4.2.2. Airline – Functional Structure ...... 97 4.2.2.1. Airport operations ...... 99 4.2.2.2. Flight operations and safety ...... 102 4.2.2.3. In-flight operations ...... 105 4.2.2.4. Security ...... 107 4.2.2.5. Career progression analysis ...... 109 4.2.2.6. Summary – airline segment critical job roles ...... 110 5. Segment- Maintenance, Repair and Overhaul (MRO) ...... 111 5.1. Segment & Sub-Sector Analysis ...... 112 5.1.1. Global Perspective ...... 113 5.1.2. Indian Perspective ...... 113

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 4

Final Report

5.1.2.1. Key Players ...... 114 5.1.2.2. Trends ...... 116 5.1.2.3. The way forward ...... 116 5.2. Employment Structure and Skill Requirement Analysis ...... 117 5.2.1. Functional Structure ...... 121 5.2.2. Key Skill Requirements ...... 125 5.2.3. Trends ...... 125 5.2.4. Summary – Critical Job Roles ...... 126 6. Segment- Cargo ...... 127 6.1. Segment & Sub-Sector Analysis ...... 128 6.1.1. Global Perspective ...... 129 6.1.1.1. Air Cargo Trends ...... 130 6.1.1.2. Growth Trends ...... 131 6.1.2. Indian Perspective ...... 131 6.1.2.1. Freight Operations ...... 132 6.1.2.2. Forecast of Air Freight Traffic ...... 133 6.1.2.3. Key Drivers of Air Cargo ...... 133 6.2. Employment Structure and Skill Requirement Analysis ...... 134 6.2.1. Air cargo analysis ...... 135 6.2.1.1. Ground operations ...... 136 6.2.1.2. Security ...... 139 7. Segment- Ground Handling ...... 140 7.1. Segment & Sub-Sector Analysis ...... 141 7.1.1. Global Perspective ...... 142 7.1.1.1. Growth Trends ...... 143 7.1.2. Indian Perspective ...... 143 7.1.2.1. Impact ...... 143 7.1.2.2. Key Players ...... 144 7.1.2.3. Growth Trends ...... 145 7.2. Employment Structure and Skill Requirement Analysis ...... 147 7.2.1. Summary – Critical Job Roles ...... 152 8. Qualitative Supply analysis ...... 153

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 5

Final Report

8.1. Civil aviation training value chain analysis ...... 154 8.2. In-service training analysis ...... 156 8.2.1. Airport segment ...... 156 8.2.1.1. AAI in-service training ...... 156 8.2.1.2. Private airports in-service training ...... 157 8.2.1.3. Training infrastructure requirements ...... 160 9. Forecasting of Human Resources Requirement ...... 175 9.1. Overview ...... 175 9.2. Approach and Methodology ...... 175 9.2.1. Phase 1: Data Collection ...... 176 9.2.2. Phase II- Demand forecast Model Inputs- parameter selection ...... 176 9.2.3. Phase III- Demand Forecast Model construction and Validation ...... 176 9.2.4. Phase IV- Human resource Estimation...... 176 9.3. Demand Forecast Model ...... 177 9.3.1. Forecasting Variables ...... 177 9.3.2. Parameter Selection and Finalization ...... 177 9.3.1. Regression Model – Functional form and results ...... 179 9.3.1.1. Domestic PAX- Embarked (Passenger traffic) ...... 179 9.3.1.2. Domestic Cargo ...... 180 9.3.1.3. International PAX ...... 181 9.3.1.4. For International Cargo ...... 182 9.3.2. Analysis and Results ...... 183 9.3.2.1. Demand Forecasting ...... 184 9.3.2.2. Projected Human Resources Requirement ...... 186 9.3.2.3. Airport Segment ...... 187 9.3.2.4. Airline Segment ...... 189 9.3.2.5. Cargo Segment ...... 190 9.3.2.6. MRO Segment ...... 191 9.3.2.7. Ground handling Segment ...... 193 10. Recommendations ...... 194 10.1. Framework for recommendations ...... 196 10.1.1. Institutional strengthening ...... 198

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 6

Final Report

10.1.1.1. Incubation of the National Civil Aviation Training Entity (NCATE) ...... 199 10.1.1.2. Establish cargo and ground handling Sector Skill Council ...... 201 10.1.2. Infrastructure and capacity building ...... 204 10.1.2.1. Establish Centres of Excellence ...... 205 10.1.2.2. Enhancing employability ...... 207 10.1.2.3. Enhancing employability with bridge courses ...... 208 10.1.2.4. Utilizing airports as in situ training centres ...... 209 10.1.2.5. Establishment of trade specialization centres ...... 210 10.1.2.6. Trainer development – using blended learning pedagogy and targeting ESM ...... 211 10.1.3. Training process re-engineering ...... 213 10.1.3.1. Standardization with NOS development...... 214 10.1.3.2. Unified Content development – MOOC model ...... 216 10.1.3.3. Creation of Massive Open Online Course (MOOC) in civil aviation ...... 217 10.1.3.4. Creation of Labour Market Information System (LMIS) ...... 219 10.1.4. Funding mechanisms ...... 221 10.1.4.1. Funding estimate for initiatives ...... 222 10.1.4.2. Fiscal Benefits for Skill Development ...... 224 10.1.4.3. Implementation plan for monitoring and evaluation for next 3 years – 2016-17, 2017-18, 2018-19 225 10.1.4.3.1. Implementation plan for prioritised high impact initiatives for Year 1 ...... 230 11. Conclusion ...... 234 Annex – Methodology ...... 235

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 7

Final Report

List of figures Figure 1: Population (millions) per aircraft ...... 34 Figure 2: Growth in GDP and Pax flown (domestic) ...... 35 Figure 3: Region-wise distribution of Infrastructure and Employment Generation ...... 45 Figure 4: Private Sector Participation—Number of Airports by Region (2011) ...... 45 Figure 5: Region-wise Cargo Traffic (102 million tonnes in 2014) ...... 47 Figure 6: Air Traffic across Major Airports ...... 51 Figure 7: Share of Top 10 Airports in Total Domestic Freight Traffic during 2014-15 ...... 52 Figure 8: Share of Top 10 Airports in Total International Freight Traffic during 2014-15 ...... 52 Figure 9: AAI Revenues (FY 2014)—USD 1.4 billion ...... 52 Figure 10: Airport operations – universe ...... 56 Figure 11: Airport functional structure ...... 57 Figure 12: Aerodrome organization structure – Government ...... 58 Figure 13: Private airports structure ...... 59 Figure 14: Functional distribution of human resources (100% ~ 23,000) ...... 60 Figure 15: Airside operations – sub functional structure ...... 62 Figure 16: Typical passenger movement in terminal ...... 66 Figure 17: Terminal management – sub functional structure ...... 66 Figure 18: Typical cargo movement ...... 69 Figure 19: Cargo – sub functional structure ...... 70 Figure 20: Engineering and maintenance – sub functional structure ...... 72 Figure 21: Security function interface ...... 77 Figure 22: ANS functional structure ...... 79 Figure 23: ATM – sub functional structure ...... 80 Figure 24: CNS – sub functional structure ...... 82 Figure 25: Aircraft Industry ...... 89 Figure 26: Market Share—Airlines ...... 92 Figure 27: Operator-wise GA Fleet ...... 93 Figure 28: Top 15 NSOP—Domestic (Aircraft) Operation ...... 94 Figure 29: Top 15 NSOP—International (Aircraft) Operations ...... 94 Figure 30: Airline analysis contour ...... 97 Figure 31: Airline – functional structure ...... 98

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 8

Final Report

Figure 32: Human resource – functional breakup ...... 99 Figure 33: Passenger movement process ...... 99 Figure 34: Airport Services / Passenger Management – key functions ...... 100 Figure 35: flight operation and safety activities ...... 103 Figure 36: flight operation and safety – key functions ...... 104 Figure 37: flight operation and safety – key functions ...... 107 Figure 38: career progression of key roles - airline ...... 109 Figure 39: Global Share of Various MRO Activities in Total Market ...... 113 Figure 40: Typical activities of MRO ...... 118 Figure 41: MRO Services in India ...... 123 Figure 42: Functional breakup – MRO ...... 124 Figure 43: Key Players in the Air Cargo Supply Chain ...... 129 Figure 44: Freight Fleet ...... 130 Figure 45: Region-wise Air Cargo Traffic ...... 131 Figure 46: India—Air Cargo Traffic Pattern ...... 132 Figure 47: Freight Traffic ...... 132 Figure 48: Cargo Handled in Million Metric Tonnes (MMT) ...... 133 Figure 49: Air Cargo – functional structure ...... 135 Figure 50: Air Cargo – HR distribution across functions ...... 136 Figure 51: Air Cargo – key functions ...... 136 Figure 52: Ground Handling- Functional Structure ...... 147 Figure 53: Air Cargo – HR distribution across functions ...... 148 Figure 54: Ramp Operations Structure ...... 149 Figure 55: Terminal Operations Structure ...... 149 Figure 56: Typical skilling value chain in India ...... 154 Figure 57: Forecast Approach ...... 175 Figure 58: Shortlisted variables ...... 178 Figure 59: Initial Model Results for Domestic PAX (EMBARKED) ...... 179 Figure 60: Zero Order Correlation Matrix- Domestic Cargo ...... 181 Figure 61: Model Results for Domestic Cargo ...... 181 Figure 62: Model Results for International PAX...... 182 Figure 63: Zero Order Correlation Matrix- International (cargo) ...... 182

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 9

Final Report

Figure 64: Model Results for International Cargo ...... 183 Figure 65: Segment wise share of employment ...... 186 Figure 66: Function wise employment split* ...... 187 Figure 67: Job Role Wise Employment Split ...... 189 Figure 68: Cargo - Department wise employment split ...... 190 Figure 69: MRO -Department wise employment split* ...... 192 Figure 70: Training Value Chain in India ...... 196 Figure 71: Recommendations framework ...... 197 Figure 72: Proposed NCATE functional structure ...... 200 Figure 73: Absolute no. of human resources required in 2035; 100% = ~0.9 mn ...... 204 Figure 74: Initiatives proposed ...... 205 Figure 75: CoE implementation model ...... 207 Figure 76: Trainer development using blended learning ...... 212 Figure 77: Key Initiatives Proposed ...... 213 Figure 78: Funding models ...... 221

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 10

Final Report

List of tables

Table 1: Key Organizations in Civil Aviation ...... 26 Table 2: Key statistics ...... 35 Table 3: Report Structure ...... 41 Table 4: Key Aspects ...... 42 Table 5: Region-wise Passenger Traffic at Airports ...... 46 Table 6: List of Airports Managed by AAI...... 49 Table 7: PPP-Mode Based Airports in India* ...... 50 Table 8: Areas in airport ...... 55 Table 9: %-age of contractual employment across functions ...... 60 Table 10: Airside management – sub functions brief ...... 62 Table 11: Terminal management – sub functions brief ...... 67 Table 12: Key Skill requirements – Terminal Management ...... 68 Table 13: Cargo – sub functions brief ...... 70 Table 14: Key Skill requirements- Cargo ...... 71 Table 15: Engineering and maintenance – sub functions brief ...... 73 Table 16: Key Skill requirements across specific functions - Engineering and Maintenance ...... 74 Table 17- Key Skill requirements- Security ...... 77 Table 18: ATM – sub functions brief ...... 80 Table 19: CNS – sub functions brief ...... 83 Table 20: Critical job roles – airport ...... 85 Table 21: Key Aspects ...... 87 Table 22: Existing Commercial Fleet ...... 91 Table 23: Summary of GA Fleet Registers in DGCA...... 93 Table 24: Airport operations (services) – sub functions brief ...... 100 Table 25: Key Skill Requirements - Airport Services/Passenger Management ...... 101 Table 26: Flight operations and safety – sub functions brief ...... 104 Table 27: Key Skill Requirements - Flight Operations and Safety ...... 104 Table 28: Airline security – sub-functions brief ...... 107 Table 29: Critical job roles – airlines ...... 110 Table 30: Key Aspects ...... 111 Table 31: DGCA Registered Domestic Fleet ...... 114

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 11

Final Report

Table 32: Maintenance Check Procedures and Schedules - Example...... 118 Table 33: Various Maintenance Checks ...... 121 Table 34: Lufthansa Technik - Diversified MRO Organisation Structure and Services ...... 122 Table 35: Key Job Roles- MRO...... 124 Table 36: Illustrative list of NOS ...... 125 Table 37: Key Aspects ...... 127 Table 38: Region-wise Air Cargo Traffic ...... 130 Table 39: Air cargo operations – sub functions brief ...... 137 Table 40: Key Skill Requirements - Air Cargo (Ground Operations) ...... 138 Table 41: Key Skill requirements- Air Cargo (Security) ...... 139 Table 42: Key Aspects ...... 140 Table 43: Authorised Ground Handlers at Six Metro Airports ...... 144 Table 44: No. of Employees in Designated Ground Handling Firms ...... 148 Table 45: Key Skill Requirements - Ground Handling ...... 150 Table 46: Training value chain analysis ...... 154 Table 47: In-service training – AAI ...... 156 Table 48: Universal set of casual factors ...... 177 Table 49: Forecasted demand parameters- Business as usual ...... 184 Table 50: Forecasted demand parameters- Optimistic ...... 184 Table 51: Forecast results –CAGR ...... 185 Table 52: Incremental Scheduled aircrafts required (Nos.) ...... 185 Table 53: Incremental GA aircrafts required (Nos.)* ...... 186 Table 54: Total Direct employment numbers in 2035 (in ‘000 Nos.) ...... 186 Table 55: Incremental employment required by 2035 (in ‘000 Nos.)...... 186 Table 56: Estimation of Airport Personnel -Core and Contractual (in ‘000 Nos.) ...... 187 Table 57: Sub-segment wise split of personnel strength (in ‘000 nos.) ...... 188 Table 58: Sub-segment wise split of personnel strength In Airport Management (in ‘000 nos.) ...... 188 Table 59: Estimation of Scheduled Airline Personnel (in ‘000 Nos.) ...... 189 Table 60: Key Job role wise employment strength (in ‘000 Nos.) ...... 190 Table 61: Estimation of Cargo Personnel (in ‘000 Nos.) ...... 191 Table 62 : Key Job role wise employment strength (in ‘000 Nos.) ...... 191 Table 63: Estimation of MRO Personnel (in ’00 Nos.) ...... 192

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 12

Final Report

Table 64: MRO Job role wise employment strength (in ’00 Nos.) ...... 192 Table 65: Estimation of Ground Handling Personnel (in ‘000 Nos.) ...... 193 Table 66: Function-wise Ground Handling Personnel (in ‘000 Nos.) ...... 193 Table 67: CoE details ...... 206 Table 68: Indicative job roles ...... 208 Table 69: Trade Specialization Model ...... 210 Table 70: Illustrative NOS for study segments ...... 215 Table 71: Role of stakeholders in content development ...... 217 Table 72: Challenges and Strategies ...... 219

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 13

Final Report List of abbreviations

MoCA Ministry of Civil Aviation MSDE Ministry of Skill Development and Entrepreneurship DGCA Directorate General of Civil Aviation AAI Airports Authority of India BCAS Bureau of Civil Aviation Security AERA Airports Economic Regulatory Authority of India ICAO International Civil Aviation Organization IATA International Air Transport Association MRO Maintenance Repair and Overhaul AASSC Aerospace and Aviation Sector Skill Council NSDC National Skill Development Corporation NOS National Occupational Standards SSC Sector Skill Council MoD Ministry of Defence DGR Directorate General of Resettlement MOOC Massive Open Online Course MoU Memorandum of Understanding Kms Kilometers Avg Average USD US Dollar NCATE National Civil Aviation Training Entity ACI Airports Council International Mn Million Mt/MT Million tones ANS Air Navigation Services ATM Air Traffic Management CNS Communication, navigation and surveillance HR Human resources CoE Centre of Excellence NSQF Nation Skills Qualification Framework LMIS Labour Market Information System CAGR Compounded Annual Growth Rate OJT On the job training

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 14

Final Report 1. Executive Summary

1. ICRA Management Consulting Services Limited (IMaCS) has been appointed by Ministry of Civil Aviation (MoCA) to conduct a comprehensive skill gap analysis and formulate a road map for skill development initiatives for the Civil Aviation sector in India. With the demand for skilled human resources increasing sharply and several challenges in incubating various training initiatives in Civil Aviation, the sector needs to formulate strategies that address skill development comprehensively across all its segments and at all levels (from high end skills to entry level skills) to ensure there is adequate availability of quality human resource across the skill pyramid. IMaCS conducted this study during August – December 2015. As part of the study, IMaCS met with various stakeholders in the Civil Aviation sector. This document is an Executive Summary of the Final Report.

2. Civil Aviation is a key sector affecting the fortunes of the global economy, while its own fortunes are also impacted by changes in the state of the global economy. This sector has seen a sustained growth over the past several decades, with the number of passengers travelling by air increasing from 9 million in 1945 to over 6.7 billion in 20141. The various expert forecasts indicate that this number is set to burgeon further in the future. Due to such a sharp growth in volumes and the deep inter-linkages the Civil Aviation sector has with the global economy, it has a complex governance structure. One find that the Civil Aviation sector has many important institutions, such as, International Civil Aviation Organization (ICAO), Civil Air Navigation Services Organisation (CANSO),International Air Transport Association (IATA), Airports Council International (ACI), and National Civil Aviation Regulators, who are involved in establishing standards and protocols, in accordance to which various stakeholders need to operate.

3. In the context of the global aviation sector, India is a key market. With a growing population and increasing propensity to travel, India’s Civil Aviation industry is witnessing a high growth trajectory. India is expected to become the third-largest aviation market by 2020 and the largest by 2030. The Ministry of Civil Aviation (MoCA) is keen to capitalise on the potential of the Civil Aviation sector, and towards this has recently formulated a draft Civil Aviation policy. The Policy seeks to set a bold Vision, Mission and Objectives2 for the sector.

1Source: ACI 2Source: The Draft Civil Aviation Policy 2015

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 15

Final Report

Draft Civil Aviation Policy – Vision, Mission and Objectives

Vision: To create an ecosystem to enable 30 crore domestic ticketing by 2022 and 50 crore by 2027. International ticketing is envisioned to increase to 20 crore by 2027.

Mission: Provide safe, secure, affordable, and sustainable air travel with access to various parts of India and the world.

Objectives:  Ensure safe, secure, and sustainable aviation industry through use of technology and effective monitoring  Enhance regional connectivity through fiscal support and infrastructure development.  Enhance ease of doing business through deregulation, simplified procedures and e- governance  Promote the entire aviation sector chain: cargo, MRO, general aviation, aerospace manufacturing and skill development.

4. Our approach for the study involved addressing the following four issues: a. Current gap: What types of skill and in what numbers are required by the Civil Aviation sector today, and what is the availability of the same? In other words, what is the current demand for various skills and what are the gaps in meeting these requirements? b. The reasons for the gaps: What skill gaps do end-users—primarily employers of various organisations in the Civil Aviation sector —perceive in the different categories of human resources? What are the causes of such gaps? What are the capacity building requirements that need to be built to meet the likely human resources requirements? c. The requirements in future: What would be the quantum of human resources requirement of the study segments, in terms of numbers for the various skill levels? d. Interventions required: How do we bridge these gaps to build a skilled human resource pipeline for the future? What policy interventions and initiatives by various stakeholders are necessary to facilitate narrowing of these infrastructure and skill gaps?

5. Our study was based on both primary and secondary research. As part of our primary research, we had interaction with the key stakeholders in the Civil Aviation sector in India, including MoCA, DGCA, AAI, select airports, a few airline companies, and cargo handling entities, ground handling entities, MRO organizations, and training providers.

6. As the first step, we mapped the employment structure of study segments (namely, airport, airline, MRO, cargo and ground handling) in terms of core and non-core functions, and distribution of human resources across various levels in line with the organisational processes. Then, the functions were individually studied to map the key job roles, requisite

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 16

Final Report

competencies, skill gaps, and capacity building measures required. Some of the key roles3 identified as part of this analysis are:

Study segment Indicative key job roles identified Airside (illustrative job roles): - Safety and Security officer - Airside operation control executive - Emergency planner - Fire safety crew - Fire prevention officer - Tarmac maintenance in charge - Runway maintenance in charge

Terminal management and city side (illustrative job roles): - Trolley workers - Loaders - Shift managers / in charge - Airport maintenance and cleaning executives Airport - Housekeeping - Cargo handling - Meteorology - PBB management executive - Civil, electrical and electronic maintenance executives

Air Navigation Services (illustrative job roles): - Air traffic controller - Watch supervisory officer (WSO) - ATS reporting officer (ARO) - Radar controller (RSR) - Planning controller (PLC) - Sector flight data assistant (SFDA) - Duty communication officer - IT officer, etc Airport services (illustrative job roles): - Check-in agent - Ticketing agent - Screeners - Boarding personnel - Floor walkers Flight operation (illustrative job roles): - Pilots - Dispatcher Airline - Flight operation assistant In flight services (illustrative job roles): - Cabin lead - Cabin attendants / crew / stewards, etc Security (illustrative job roles): - Security manager - Security executives - Security staff Engineering (illustrative job roles): - Aircraft maintenance engineers

3 Job role defines a unique set of functions that together form a unique employment opportunity in an organisation

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 17

Final Report

Study segment Indicative key job roles identified - Technicians - Accountable Manager (Senior Management) - Line Maintenance Manager, Base Maintenance Manager and Work Shop Manager - Certifying staff, technicians, and mechanics – type rated for aircraft, facilities and components MRO - Technical support personnel such as, planners, engineers, technical record staff - Airframe technicians - Engine Technicians(Rigging, Installation, Testing) - Avionics and Systems Technicians - Aircraft Inspectors - Unloaders and loaders - Cargo assistants - Shift in charge - Planners Cargo - Air worthiness executives - Packers - Drivers - Security executives - X-ray staff - Passenger Service - Customer Handling - Passenger Service - Lost and Found Service Ground handling - Operations and Ramp Handlers - Aircraft Handlers and Loaders - Airside Safety and Security executives

7. We analyzed the human resource supply ecosystem in the Civil Aviation sector in India.The key challenges are: o High cost of training o Need to attract and retain good quality of trainers o Need to build normalised trainee pool o Need for up-skilling across different levels o Need for standardisation of courses for non-regulated roles o Assessment practices that need to be evolved specifically for non-regulated positions o Need to enhance practical / hands-on training across key areas

8. Our estimate indicates that by 2035, the Indian Civil Aviation sector (across the study segments of Airport, Airlines, Cargo, MRO and Ground Handling) will employ 0.8 to 1 million personnel directly and another 3 million indirectly (for 1 direct job about 3.5 indirect jobs are created)4, after factoring in the likely improvements in economic output and labour productivity. For the direct employment opportunities estimated, the airlines segment contribute the maximum share of 32% followed by cargo about 25%, airport at 23% (which also includes contractual staff), ground handling about 17%, and MRO about 3%. The new employment opportunities would not only call for enhanced functional, and to an extent

4Source: Based on IMaCS discussions with Aviation industry players

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 18

Final Report

segment-specific competencies across levels, but also demand several ―soft skills and domain-specific skills. The analysis has been outlined under three scenarios, namely, business as usual, optimistic, and pessimistic.

9. The recommendations outlined focus on how the training interventions need to be revamped to meet the burgeoning skill gap requirements. We would like to emphasise that the recommendations have to be viewed holistically and should not be interpreted as standalone measures. The framework for recommendation has five dimensions as outlined below:

1.Institutional strengthening

5.Monitoring 2.Infrastructure and and capacity evaluation planning Robust training and skill building ecosystem

3.Training 4.Funding process re- mechanisms engineering

 Institutional strengthening – This relates to enhancing the ability of institutions to perform their functions which would lead to improved governance and better outputs. In the context of training, the existing institutional structure should be strengthened further to ramp up training initiatives.  Infrastructure and capacity building – This pertains to strategies that aim to expand the existing infrastructure and ultimately aid in capacity building.  Training process re-engineering – This dimension outlines actionable ideas to modify the existing training process to enhance the quality of the output as well as to make the training system more efficient  Funding mechanisms – This dimension outlines the funding requirements for the capacity building measures envisaged.  Monitoring and evaluation (M&E) – The M&E outlines the principles of monitoring and evaluation required to enhance performance and ensure sustainability of the proposed changes in the training ecosystem,

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 19

Final Report

Each of the dimensions of the recommendations is analyzed in the subsequent paragraphs. a. Institutional strengthening

The current training ecosystem ensures that there are checks and balances that are created by MoCA as well as by the associate organizations. However, such measures exist as standalone approach to training as opposed to a unified common policy and standards to drive it forward. With the vast number of human resources that are required – 0.8 to 1 million people to be trained by 2035 – there is an urgent need to augment the existing institutional framework that drives the skill building across various study segments. Such augmentation should be done across two independent arcs that should have convergent objectives:  An apex body - National Civil Aviation Training Entity (NCATE) should be established that oversees all training related activities for the Civil Aviation sector in India. All training and skill building programs and measures should be in line with the existing NSQF and MSDE frameworks

i. Incubation of the National Civil Aviation Training Entity (NCATE) The National Civil Aviation Training Entity (NCATE) has been proposed with the following core objectives: . Unified view of training and skill building requirements in civil aviation  For all segments in the sector  Assess demand across time periods for all roles . Facilitate establishment of Centers of Excellence for best practices . Provide strategies for infrastructure leverage . Create mechanisms to boost investments in training . Facilitate international collaborations in training and skill building . Make available information and knowledge through digital platform . Coordinate with Ministry of Skill Development and Entrepreneurship (MSDE) . Create awareness for employment opportunities in civil aviation The infrastructure of Indian Aviation Academy or Aviation University may be leveraged for establishing the proposed NCATE. The budget for establishing NCATE is outlined as part of funding requirement under the institutional strengthening and capacity building initiative. To complement the role of NCATE, the private sector will be part of advisory committee to provide necessary inputs for training policy, standards, curriculum development, research, collaboration and placement facilitation.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 20

Final Report

ii. To complement the role of AASSC, establishment of Skill Council for cargo and ground handling The current skill landscape in India has undergone a sea change in the preceding decade with the establishment of the Sector Skill Councils (SSCs), adherence to the NSQF, and formulation of the National Occupational Standards (NOS). The Aerospace & Aviation Sector Skill Council (AASSC) has been approved as the SSC for the Civil Aviation sector in June 2013. The AASSC looks at higher order skill sets in select segments. In order to complement the role of AASSC, we propose establishment of another SSC to focus on the cargo and ground handling segments. In the area of cargo, MoCA has initiated efforts in skill building with basic training course in air cargo with the participation from the industry. This initiative may be used as a launch pad for creation of the cargo and ground handling SSC with support from industry partners. b. Infrastructure and capacity building

This dimension of infrastructure and capacity building assumes significance given the need for a huge increase in skilled resources required across all levels.

Initiatives Highly Specialised skills Centres of Excellence 8-10%

Medium to high complexity skills Enhancing employability 25-30%

Trade Specialization Low to medium complexity skills Centres 62-65%

Capacity building for trainers

i. Centres of Excellence To facilitate creation of higher order skills in the Civil Aviation sector and building a sustainable competitive edge, we recommend the establishment of Centres of Excellence (CoE). The CoEs would serve as the focal points in providing training programmes for higher order skills. They would also address the latent need for enhancing quality of training in the Civil Aviation sector. Thus, CoEs serve as government driven models where world class infrastructure and facilities are created for skill development, particularly for the segments with higher order skills. The following areas can be explored for CoEs to start with:

1. MRO – at Bangalore/Hosur, Hyderabad, Nagpur and Delhi 2. Airline – Tier 2 cities in each zone such as Jaipur, Shillong and Ahmedabad

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 21

Final Report

The CoEs would not be a standalone infrastructure, but will work with the skill building ecosystem in and around the geographical area. The CoEs would also work with the SSCs in driving down standards to grassroot level.

ii. Enhancing employability The objective of this initiative is to enhance the employability of the middle layer of the skill pyramid. Whilst the new infrastructure and initiatives can aim to create a strong workforce, the existing workforce also needs to be constantly up-skilled to respond to changing dynamics of the Civil Aviation sector. To enhance the employability twin approaches can be adopted: . Offering bridge courses with specific modules - Bridge courses can be offered to personnel at regular intervals to enhance their skill levels for some job roles identified above. Civil aviation sector is a mélange of human resources from several sectors. Thus, the target audience for these bridge courses can be personnel from ITI, polytechnic graduates, engineers, Hospitality sector personnel, retail sector personnel, etc. The following domain areas may be considered for skill enhancement: 1. Civil aviation regulations 2. Airport operations 3. Safety and Security 4. Maintenance basics 5. Equipment handling basics 6. Customer management In addition to domain skills, non-core aviation skills that are important can also be covered. These courses certifications will be from the relevant SSCs from different sectors, such as, Tourism and hospitality, Retail, IT &ITeS, Electronics, Construction, and Plumbing. . Utilizing airports as training infrastructure: To enable practical exposure to various facets of Civil Aviation, we recommend incubation of “in-situ training center” at all airports. Taking advantage of the available physical space and the intrinsic abilities of airports to provide opportunities to build the requisite skills, the airports can be used as centers for skill development. This airport training programs could be built on the following lines :  Offer sandwich courses (a training course with alternate periods of formal instruction and practical experience) in areas such as: o Airport management o Customer service o Airport security o Baggage screening o Civil, electrical and electronic maintenance  Orientation courses – New personnel inducted in various airport-related activities will be subjected to a compulsory 15 day orientation programme. MoCA may consider providing fiscal incentives to airport operators for establishing integrated training centres.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 22

Final Report

iii. Establishment of trade specialization centres (TSC) The objective of this initiative is to enhance the skill level of entry level personnel. The trade specialization model seeks to enable the creation of an appropriately skilled human resource pipeline – especially in the cargo and ground handling segments. The trade specialization centres will showcase ‘best-in-class’ systems, processes, and facilities in managing various cargo and ground handling activities. The TSC will be established in major cargo and ground handling locations spanning metro, tier 1 and tier 2 cities. iv. Trainer development – using blended learning pedagogy and targeting ESM The paucity of skilled trainers and faculty is one of the key bottlenecks in skill development initiatives in India across most sectors. This problem is acute even in the case of Civil Aviation sector. One option is to train Ex-servicemen (ESM) and soon to-be-ESM to become trainers. In order to maintain a youthful profile of the Armed Forces, approximately 60,000 service personnel are retired /released every year at a relatively young age, at which most of them can still engage in gainful activities. The services of ESM can be used as resources in the following segments:

- Administration capabilities (across segments) - Security (across segments) - MRO of aircrafts - ANS - Airport operations The process of induction of ESM through blended learning model has been outlined in the report c. Training process re-engineering

The training process re-engineering aims to translate the objectives of the institutional mechanism as well as the infrastructure and capacity building. The following key strategies have been suggested:

 Development of National Occupational Standards  Massive Open Online Course (MOOC) model  Creation of LMIS

i. Standardization with NOS development National Occupational Standards (NOS) specify the standard of performance an individual must achieve when carrying out a function in the workplace, bringing together skills, knowledge and understanding he or she needs to meet that standard consistently. With several key areas in the Civil Aviation sector that have been outlined which require immediate skill development efforts, it is imperative the NOS are developed on high priority for specific job roles. Some illustrative NOS elements have been identified for entry job roles in the study segments in the report. ii. Creation of Massive Open Online Course (MOOC) in Civil Aviation MOOC is an online course aimed at large number of participants by using the Internet. In addition to traditional course materials such as filmed lectures, readings, and problem sets, many MOOCs provide interactive user forums to support community interactions between trainees and faculty. Developing MOOC reduces entry level costs significantly.The application of MOOC modules in Civil

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 23

Final Report

Aviation should be explored, especially in areas such as in-service training and some common modules for training in areas such as the following: - Aviation regulation - Health and safety - Security aspects - Environment - Basic IT - Interpersonal skills - Working in teams The MOOCs need to be developed in line with the SSCs defined NOS.

iii. Creation of Labour Market Information System (LMIS) With the training landscape having a streamlined approach to developing content, assessment tools and embracing alternative pedagogies, there exists a need to dynamically reflect what the market requires in terms of people and what the supply is. This data needs to be available at critical job role level across the various segments of the Civil Aviation sector. This can be achieved with a suitable LMIS. An LMIS is the systematic collection, analysis and dissemination of information regarding the demand for and supply of labour. The SSCs should be at the helm and NCATE should provide guidance in developing LMIS. d. Funding mechanisms

To be successful, skill development and capacity building measures need sufficient financing from robust funding mechanisms. The quantum, sources and nature of funding for skill development are largely driven by underlying key challenges faced by the sector. Some of the challenges faced by the Civil Aviation sector are:

 Aviation skills are diverse across segments (airport, airline, MRO, cargo and ground handling), highly regulated, process oriented and specialised, and require significant lead times to build capacity, especially for high end skills  High cost of training restricts organisation from investing in up-skilling and for new skilling.  Need to build a trainer pipeline  The courses across segments sometimes do not reflect the industry requirements in a majority of areas, which necessitates more frequent re-skilling  Insufficient practical / hands-on knowledge across key areas  Low Return on Investment of training institutions discourage firms from investing in expanding training infrastructure  Early stage of SSC implementation

Given the above conditions, the Government needs to seed a significant part of the initial investment to invigorate skill development in the sector. We estimate that this investment would be about Rs. 560 crore for kick-starting the skill development initiatives in the Civil Aviation sector over next three years as outlined below. The funding of large scale skill training in entry level skills can be facilitated through the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 24

Final Report

In addition to above funding requirements, the Report recommends certain fiscal benefits that can be extended to facilitate training program in Civil Aviation sector. They are: exemption from Service Tax for SSC accredited training institutions, reimbursement of one-time expense required for affiliation and accreditation of training institutions to SSC, and Scholarship Scheme and tax holiday for investing in Centre of Excellence in MRO. e. Implementation plan for monitoring and evaluation

The Report also outlines a phased implementation plan for the skill development initiatives.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 25

Final Report 2. Background to the Study 2.1. Context

Civil aviation is one of the most important sectors globally. This sector represents all non-military aviation – both private and commercial. Civil aviation includes two major categories:  Scheduled air transport – which includes all passenger and cargo flights operating on regularly scheduled routes; and  General aviation (GA) – which include all other civil flights, private or commercial The sustained growth trajectory of the civil aviation sector has a cause and effect relationship i.e. due to the economic health the civil aviation sector grows and this as a consequence also drives the economy. There are approximately 270 international airlines in the world, and many more national and regional ones; there are at least 1,500 major airports in the world; overall, airports generate 32 million jobs5. Though the civil aviation sector by itself is a ‘new’ sector (the sector has evolved from early 1900s) there has been tremendous development in terms of the environment as well as the technological advancements. The number of passengers travelling by air increased from nine million in 1945 to over 6.7 billion in 20146. The number of people flying expressed as a percentage of the world population increased from 0.7% to over 40% over the same period of time7. The various expert forecasts indicate that this number is set to burgeon further in the years to come. With such a massive growth it is purely consequential that various organisations stepped up to create regulations and standards. Thus, the civil aviation sector is complex with multiple stakeholders who establish standards and protocols, adhering to which the concerned stakeholders need to operate. This institutional structure aims to create safe and secure air travel.

Table 1: Key Organizations in Civil Aviation

Organization Mandate The International Civil Aviation Organization (ICAO) is a UN specialized agency, established by States in 1944 to manage the administration and governance of the Convention on International Civil Aviation (Chicago Convention).

International Civil ICAO works with the Convention’s 191 Member States and industry Aviation Organization groups to reach consensus on international civil aviation Standards and (ICAO)8 Recommended Practices (SARPs) and policies in support of a safe, efficient, secure, economically sustainable and environmentally responsible civil aviation sector. These SARPs and policies are used by ICAO Member States to ensure that their local civil aviation operations and regulations conform to global norms.

5 Source: IATA Traffic survey

6 Source: ACI

7 Source: IATA projections on ICAO data

8 Source: ICAO

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 26

Final Report

Organization Mandate ICAO also coordinates assistance and capacity building for States in support of numerous aviation development objectives; produces global plans to coordinate multilateral strategic progress for safety and air navigation; monitors and reports on numerous air transport sector performance metrics; and audits States’ civil aviation oversight capabilities in the areas of safety and security.

ICAO Strategic Objectives 2014-2016

Safety: Enhance global civil aviation safety. This Strategic Objective is focused primarily on the State's regulatory oversight capabilities.

Air Navigation Capacity and Efficiency: Increase the capacity and improve the efficiency of the global civil aviation system. Although functionally and organisationally interdependent with Safety, this Strategic Objective is focused primarily on upgrading the air navigation and aerodrome infrastructure and developing new procedures to optimise aviation system performance

Security & Facilitation: Enhance global civil aviation security and facilitation

Economic Development of Air Transport: Foster the development of a sound and economically-viable civil aviation system.

Environmental Protection: Minimise the adverse environmental effects of civil aviation activities. The mandate of this association of IATA is to represent, lead and serve the airline industry, with a view to providing safe, secure, efficient, economical, and seamless air travel. Today, this organisation has 270 International Air members representing 98% of the world international traffic. Transport Association

(IATA)9 IATA’s vision is to be the force for value creation and innovation driving a safe, secure and profitable air transport industry that sustainably connects and enriches the world. CANSO is the global voice of air traffic management (ATM) worldwide. CANSO Members support over 85% of world air traffic. Within the overall context of promoting safe and efficient air navigation Civil Air Navigation service provision, CANSO seeks to: Services Organisation (CANSO)10  Maintain an international forum for the development and exchange of ideas on current air traffic management related issues and the formation of distinct CANSO policies and

9 Source: IATA 10 Source: CANSO.org

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 27

Final Report

Organization Mandate positions  Develop an international network for ANS experts to enable information exchange between specific air navigation service providers (ANSPs) and other stakeholders for the promotion of best practice within ATM  Liaise with other transport industry stakeholders, particularly airlines, industry suppliers and airports, to the overall benefit of the aviation industry  Contribute to the continuous global air transport debate through the presentation and promotion of the ANSP perspective across the range of contemporary issues in the industry  Represent the views and interests of Members at relevant international institutions, particularly the International Civil Aviation Organization (ICAO)  Promote and support international legislation, regulations and agreements that strengthen the position of Members ACI, an association of airports, was established in 1991. Its mandate is to Airports Council foster cooperation among its Member airports, and with other partners International (ACI) in world aviation, including airlines, governments, and aircraft manufacturers. ACI has over 1500 members in 169 countries. The nations have intrinsic civil aviation regulators who play the role of regulators who lay down the following key aspects related to civil aviation:

 Personnel licensing — regulating the basic training and issuance of licenses and certificates  Flight operations — carrying out safety oversight of commercial operators National civil aviation  Airworthiness — issuing certificates of registration and regulators certificates of airworthiness to civil aircraft, and overseeing the safety of aircraft maintenance organisations  Aerodromes — designing and constructing aerodrome facilities.  Air traffic services — managing the traffic inside of a country's airspace

The above regulations may be helmed by a single authority or a group of authorities working in close collaboration. The civil aviation sector is comprised of many segments. In most nations, these segments have industry bodies coming together to work Industry associations towards the respective segments’ betterment and often discuss key points Source: Secondary sources In the context of the global aviation sector, India is one of the most promising countries. With a growing population and increasing propensity to travel, India’s civil aviation industry is on a high- growth trajectory. India aims to become the third-largest aviation market by 2020 and the largest by 2030.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 28

Final Report 2.2. Civil aviation in India

The Indian civil aviation sector is vital to the growth of Indian economy and enhances the globalization. Civil Aviation is a key sector facilitates the growth of business, trade and tourism, with significant multiplier effects across the economy. The civil aviation sector has several key sub- segments:  Airports  Airlines  Maintenance repair and overhaul (MRO)  Air cargo and express industry  Ground handling  Aviation academies11 This sector is helmed by the Ministry of Civil Aviation (MOCA) which is responsible for formulation of national policies and programmes for the development and regulation of the Civil Aviation sector in the country. The Vision for the MOCA is “Enable people to have access to safe, secure, sustainable and affordable air connectivity services with World Class civil aviation infrastructure”. This Ministry exercises administrative control over attached and autonomous organizations such as Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS) and Indira Gandhi Rashtriya Udan Academy and affiliated Public Sector Undertakings like National Aviation Company of India Limited, Airports Authority of India and Pawan Hans Helicopters Limited12. The snapshot of the key organizations for the civil aviation sector is outlined below13: a. DIRECTORATE GENERAL OF CIVIL AVIATION (DGCA)

The Directorate General of Civil Aviation (DGCA) is the principal regulatory body in the field of civil aviation. It is responsible for promotion, development of an efficient and sustainable air transport with safety through formulation and compliance of civil air regulations. DGCA co-ordinates all the regulatory functions with International Civil Aviation Organisation (ICAO) – a specialized agency of the United Nations. DGCA is a statutory authority responsible for implementation and monitoring of Standards and Recommended Practices (SARPs) contained in all Annexes (1-18 excepting Annex 17) to the Chicago Convention, 1944 governing safe and orderly development of civil aviation ranging from personal licensing to transportation of Dangerous Goods. b. AIRPORTS AUTHORITY OF INDIA (AAI)

Airports Authority of India (AAI) is developing airport infrastructure along the length and breadth of the country including remote and far flung areas. AAI came into existence on 01.04.1995 with the merger of National Airports Authority and International Airports Authority of India. The merger brought into existence a single organization entrusted with the responsibility of creating, upgrading, maintaining and managing civil aviation infrastructure both on the ground and air space in the country; with a view to accelerate the integrated development, expansion and modernization of the

11 Source: Report of Working Group on Civil Aviation Sector 12 Source: Ministry of civil aviation 13 Source: Respective official websites

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 29

Final Report air traffic services, passenger terminals, operational areas and cargo facilities at the airports in the country. It manages 125 airports consisting of 68 operational airports (11 International airports, 8 Customs and 49 Domestic airports), 26 Civil Enclaves (3 International, 4 Customs and 19 Domestic) and 31 Non-Operational Domestic Airports. In addition, AAI provides Air Navigation Services (ANS) at all civil airports including 9 other airports that are not managed by AAI. AAI also provides Air Traffic Management Services (ATMS) over entire Indian Air Space and adjoining oceanic areas with ground installations at all airports and 25 other locations to ensure safety of aircraft operations. AAI is a Mini Ratna Category-1 Public Sector Enterprise. The main function of AAI inter-alia include construction, modification and management of passenger terminals, provision of passenger facilities and related amenities, development and management of cargo terminals, development and maintenance of apron infrastructure including runways, parallel taxiways, apron etc., provision of Communication, Navigation and Surveillance which includes provision of Doppler Very High Frequency Omni Directional Range (DVOR)/ Distance Measuring Equipment (DME), Instrument Landing System (ILS), Air Traffic Controller (ATC) radars, visual aids etc., provision of air traffic services, thereby ensuring safe and secure operation of aircraft, passenger and cargo in the county. c. BUREAU OF CIVIL AVIATION SECURITY (BCAS)

The Bureau of Civil Aviation Security (BCAS) is the designated Regulatory and Monitoring Authority responsible for maintaining prescribed standards of Aviation Security at all civil airports in the country. The Bureau, which was initially set up in 1978 as a Directorate of DGCA, was made an independent organization w.e.f. 1.4.1987. The Bureau ensures the aviation security standards in compliance of National and International obligations under National Aviation Security (AVSEC) Programme and various Conventions and Treaties of International Airport Transport Association (IATA), International Civil Aviation Organisation (ICAO), etc. to which India is a signatory. The Bureau is headed by Commissioner of Security (Civil Aviation), who is also the designated ‘Appropriate Authority’ in India, in compliance of Annex 17 of ICAO’s Chicago Convention, to formulate and implement the National AVSEC Programme. The Bureau issues orders, instructions and guidelines from time to time to State/Union Territory Police, CISF, airport authorities and air carriers, about various measures to be undertaken to prevent hijacking, terrorist activities and unlawful interference in Aviation. BCAS maintains close liaison with international agencies like IATA, ICPO, INTERPOL and ICAO for assessing threats as also for upgrading aviation security in the country at par with international standards. d. AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA

The Airports Economic Regulatory Authority of India (AERA) was established on 12th May, 2009. The Authority consists of Chairperson and two Members appointed by the Central Government. The functions of AERA inter-alia include determination of tariff for the aeronautical services, users’ fee and monitoring prescribed performances standards relating to quality, continuity and reliability of services in respect of major airports in the country. During the Financial Year 2014-15, the Authority

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 30

Final Report issued 16 Consultation Papers and 18 Orders based (till 31st Dec 2014) on its approach towards regulation of airports and aeronautical services. e. PAWAN HANS LIMITED (PHL)

PHL runs helicopter services for offshore operations, connecting remote and hilly areas and tourist services. The company is also operating a Training Institute approved by Directorate General of Civil Aviation, Govt of India, for imparting training in the field of Aircraft Maintenance Engineering. National Institute of Aviation Safety & Services (NIASS) was set up by Pawan Hans with the primary objective for implementing a world class Safety Management System in its operations. f. AIR INDIA LIMITED

Air India Ltd was formed by merging the two Public Sector Companies i.e. erstwhile Indian Airlines Ltd and Air India Ltd with the new company National Aviation Company of India Limited (NACIL). After the approval to the scheme of merger by the Govt. of India, the Ministry of Corporate Affairs vide their Order dated 22nd August 2007 approved the scheme of Amalgamation of Air India Limited and Indian Airlines Ltd (IAL) with the National Aviation Company of India Ltd (now Air India Ltd) with effect from 1st April 2007. The name “National Aviation Company of India Ltd.” has been changed to “Air India Limited” w.e.f 24th November, 2010. The Company has five wholly owned subsidiary companies namely the Hotel Corporation of India Ltd., Air India Charters Ltd., Air India Air Transport Services Ltd., Air India Engineering Services Ltd. and Airlines Allied Services Ltd. The Hotel Corporation of India Ltd. was incorporated in 1971 to provide in-flight catering services and for 5 operating hotels in the vicinity of the airports for tourist/ transit passengers. Air India Charters Ltd. commenced its low cost airline viz. Air India Express from April 2005 which operates flights to South East Asia & Middle East at very competitive fares. Air India Air Transport Services Ltd. was formed for undertaking ground handling and other allied services. Air India Engineering Services Ltd. has been formed for providing engineering services to airlines. Airline Allied Services Ltd. was formed for operating on the shorter/tourist sectors of erstwhile IAL. The authorized and paid up capital of Air India Ltd. are Rs.200.0 billion and Rs.143.4 billion respectively. g. INDIRA GANDHI RASHTRIYA URAN AKADEMI (IGRUA)

In order to standardize and improve facilities for flying training in the country, the Government set up the Indira Gandhi Rashtriya Uran Akademi at Fursatganj in Rai Bareilly District of Uttar Pradesh in 1986. Till February, 2015 the Akademi had trained 1,063 commercial pilots and 701 pilots for Multi- Engine endorsement and refresher course etc. It is well equipped school for training of commercial pilots’ license. It is managed by a Governing Council. Initially the Akademi was set up to train 40 pilots a year but with the rapid growth of the Civil Aviation Sector, there is tremendous demand for trained and qualified pilots. Therefore, it has been decided to broaden the activities of IGRUA by upgrading and creating additional facilities for training 100 pilots a year. It was decided to professionalize the management of IGRUA, increase the number of trainees and upgrade the standards of training by entering into management contract with experts and professional agencies in the field. A management contract was accordingly signed with CAE Flight

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 31

Final Report

Training (India) Private Limited, a wholly owned subsidiary of CAE Inc, Canada on 7.2.2008 for an initial period of 10 years without affecting the legal entity of IGRUA. The management contract partner took over the management w.e.f 1.3.2008. h. AERO CLUB OF INDIA

Aero Club of India (ACI), established in 1927 is registered under the Companies Act 1956. The objectives of Aero Club of India are to encourage, protect and develop the study and practice of Aeronautics and Aviation in India and to provide a Centre of Information and advice on all matters pertaining to Aeronautics. It also provides an all India authority to organize all competitions, sporting events in connection with Aero sports in India. ACI has 22 member flying clubs which are primarily non-profit and non- commercial organizations engaged in the task of basic/ ab-initio training of Pilots and Aircraft Maintenance Engineers. ACI is also engaged in promotion of aero sports in the country like Parasailing, Hot Air Ballooning, Skydiving, Glider flying, aero modelling etc. through its 23 associate members using equipment provided by ACI. These organizations, attached to MoCA, ensure that there are world-class standards and operations in line with these standards in the civil aviation sector. 2.3. The Indian Civil Airspace

The Indian Civil Airspace as assigned by the International Civil Aviation Organization (ICAO) extends from Kuala Lumpur and Yangon in the east to Pakistan and Muscat in the west over 2.8 million square nautical miles, which includes the continental airspace (1.0575 million sq. NM), the airspace over territorial waters and over an extended international oceanic airspace (1.75 million sq. NM) . Over 60% of India’s airspace comprises of oceanic airspace over the Arabian Sea, the Bay of Bengal and the Indian Ocean. The airspace is divided into four primary Flight Information Regions (FIR) at Delhi, Mumbai, Chennai and Kolkata, with a sub-FIR at Guwahati. Indian and neighbouring Flight Information Regions (FIRs)

Source: Airport Authority of India, Strategic Plan 2014-2018

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 32

Final Report 2.4. Key Drivers of Growth of Indian Aviation Market

During the last one decade the civil aviation sector has grown at a phenomenal pace and India has emerged as the 9th largest civil aviation market in the world. To illustrate this, the civil aviation space in India boasts of the following key statistics14:

 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  435 scheduled and 1204 General Aviation fleet operating in India  Bilateral with 104 countries  1,356 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) This growth is due to the following key factors:

 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 India’s GDP was 5.7% which then rose to 8.6% during 2004-05 to 2010-11. Then during 2014-15 GDP at constant prices (2011-12) increased by 7.5%. The growing economic activity resulted in greater business travel by professionals and greater leisure travel by individuals.  Expanding middle-income group – This income group drives the consumption pattern in India and are primarily concentrated in urban areas. An 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. This segment directly feeds into the civil aviation sector  Rising urban population – Research suggests that India’s urban population will be 590 million by 2030 i.e. about 40 percent of the total population of India. The number of million 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. This factor again propels the sector  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. This stimulated the pent up demand for air travel. 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 These key growth factors have caused a surge in the sector’s fortunes. With its strategic importance this sector has a significant impact on the economy also.

14 Source: Strategic Plan – Ministry of Civil Aviation

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 33

Final Report 2.5. Impact on Economy

Transport is a major driver of economy. The linkage between civil aviation sector and economic activity and its catalytic impact on general development is now well recognized. The International Civil Aviation Organization (ICAO) estimated that USD100 spent on air transport produce benefits worth USD325 for the economy and 100 additional jobs in air transport result in 610 new economy wide jobs. The ICAO study attributes over 4.5% of global GDP to the air transport component of civil aviation. An efficient aviation sector is essential to support tourism, an industry with immense employment opportunity. Between 2000 and 2010 air operations by Air India expanded by 160% in terms of domestic passenger volume. India now ranks 4th (Ministry of Civil Aviation Strategy Plan 2010-15), after US, China and Japan. Domestic passenger traffic is expected to grow at a rate of 8-10% annually to reach the level of 200 to 220 million by 2020. Similar expansion has been witnessed in airport infrastructure where the number of operational airports has increased. In the recent past India was a small player in the international arena. The trips per capita in India was very low (0.04) even by the standards’ of other emerging markets, such as China (0.15), Brazil (0.25) and Malaysia (0.54) during FY2010. China’s domestic traffic was 5 times the size of India’s despite having a population just 15% larger. The upside potential therefore, remained huge, driven by strong economic and demographic fundamentals. India had 1 aircraft for every 2.89 million population which was miniscule in comparison to 1.14 million in China, 0.96 of Indonesia, 0.89 in Philippines and 0.63 in Brazil. Out of the 32,000 helicopters in the world India had merely 210 while out of 15,750 freighter carriers globally, India had just 12.

Figure 1: Population (millions) per aircraft

India China Indonesia Philippines Brazil South Africa Russia Population(millions) per aircraft Japan Malaysia France Germany UK USA Australia

0 0.5 1 1.5 2 2.5 3 3.5

Source: Government of India, IMaCS Analysis

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 34

Final Report

What has to be reiterated is that air travel growth is driven by a several factors outlined above like the combination of economic growth and the increasing propensity to travel due to increased trade, globalisation and improved airline services driven by liberalisation of air traffic nationally and between countries. Industries that rely most heavily on air transport for their international freight shipments include high growth sectors such as pharmaceuticals, office equipment and electronic equipment sectors besides those that have high value to weight products. Therefore high growth sectors in emerging markets are also among the most heavily dependent on the services of the aviation industry. Increased air connectivity enables manufacturing enterprises to exploit the speed and reliability of air transport to ship components across firms that are based in different and distant locations thereby minimising the inventory cost. Countries with higher connectivity are stated to be in general more successful at attracting Foreign Direct Investment. Additionally, aviation is also essentially a seasonal sector with factors like weather and vacations having a cascading impact on the sectoral dynamics. These factors highlight the need for focused efforts in the context of the Indian aviation sector. Also, all the above strands have resulted in the economic performance of the sector. The GDP at constant prices (Base year 2011-12) in FY2015 stood at 7.5% and the passenger flown (domestic) increased by 15.5% as compared to 6.5% during FY2014.

Figure 2: Growth in GDP and Pax flown (domestic)

Note: 1997-2012 (base year 2004-05), 2013-2015 (base year 2011-12) Source: Government of India, IMaCS Analysis In terms of the statistics of the pax traffic has grown at a 3 year CAGR of about 5.6% as evinced by the data below:

Table 2: Key statistics

Parameters / FY 2012 2013 2014 2015 Passenger Traffic-‘000 162,300 159,300 169,027 190,235 International 40,790 43,020 46,617 51,168 Domestic 121,510 116,280 122,409 139,067 Cargo Traffic-tonnes 2,279,990 2,196,704 2,279,560 2,518,936 International 1,467,900 1,412,548 1,443,458 1,542,521 Domestic 812,090 784,156 836,102 976,415

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 35

Final Report

Parameters / FY 2012 2013 2014 2015 Aircraft Movement- '000 1,544,650 1,480,232 1,536,588 1,603,023 International 309,290 314,752 335,953 345,465 Domestic 1,235,360 1,165,480 1,200,635 1,257,558

Source: Government of India, IMaCS Analysis The need to build skills that are market oriented and to tailor the associated training programs that incorporate the best practices in training, pedagogy and curriculum are the need of the hour in the context of the Indian skill space. Though this is true across all the sectors, this assumes greater importance in strategic sector like civil aviation. With the sector (comprising of study segments) on the growth trajectory and its impact on the national economy poised to become more significant there is an urgent need to analyze the human resource supply and the associated infrastructure. The Ministry to capitalise on the potential of the civil aviation sector has tabled the draft civil aviation policy in October 2015 which highlights the aspiration for the sector.

2.6. Highlights of the Draft Civil Aviation Policy 2015

The Policy sets the following Vision, Mission and Objectives15:

Draft Civil Aviation Policy – Vision, Mission and Objectives Vision: To create an eco-system to enable 30 crore domestic ticketing by 2022 and 50 crore by 2027. Similarly, international ticketing to increase to 20 crore by 2027 Mission: Provide safe, secure, affordable and sustainable air travel with access to various parts of India and the world. Objectives

 Ensure safe, secure and sustainable aviation industry through use of technology and effective monitoring  Enhance regional connectivity through fiscal support and infrastructure development.  Enhance ease of doing business through deregulation, simplified procedures and e- governance  Promote the entire aviation sector chain: cargo, MRO, general aviation, aerospace manufacturing and skill development.

The Policy outlines the way forward across 22 policy issues of which what stands out in the context of this report is the Aviation education and skill development. The Policy states that:

 The government will expedite the commencement of courses by the National Aviation University (NAU)  MoCA will provide full support to the Aerospace and Aviation Sector Skill Council (AASSC) for imparting skills for the growing aerospace and aviation industry in India

15 Source: The Draft Civil Aviation Policy 2015

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 36

Final Report

 MoCA will facilitate greater involvement of private sector in sponsoring aviation institutions, industrial training and R&D projects  MoCA and DGCA will undertake strict monitoring of aviation related educational institutions. Institutions not meeting the prescribed standards will invite appropriate action

The above Vision of the MoCA for the sector needs to build from the focus given to the HR thrust to enable an industry-appropriate skilled work force.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 37

Final Report 2.7. Human resource scenario in the civil aviation sector

The need for qualified and appropriately skilled human resource is a must in any sector. This assumes greater gravitas in the civil sector with its tremendous growth potential and importance to the overall economy of the nation. The key current training set up for the aviation sector occurs through the government bodies and private players who offer courses across the various sectors of civil aviation. However, the current set up of training institutes as well as the quality of training imparted has resulted in several training challenges that have lead to gaps which are both qualitative as well as quantitative. With the demand for skilled HR on one hand and prevailing challenges in incubating various training infrastructure on the other hand, the civil aviation space thus needs concrete strategies that suggest skills that have a healthy mix of technical, commercial and soft skills across all its sectors to ensure there is quality human resource across the skill pyramid. But there is limited understanding and clarity on how exactly this effort needs to be undertaken. With this as the background, the Ministry of Civil Aviation (MoCA) has initiated a Study to conduct a comprehensive skill gap analysis and future road map for skill development in civil aviation sector with the following objective and scope of work.

2.8. Objective of the Study

The main objective of the MOCA, taking cognizance of the situation, is to thoroughly review and assess the skill needs in different segments/sub-segments of the civil Aviation sector in the present and future and take urgent action to remedy the situation. Accordingly, MOCA, invited Request for Quotation (RFQ-for short) for the selection of an Agency, inter alia, to conduct study on competence skills across various segments of civil aviation sector' identify gaps in it and prepare future road map for skill development in the sector, advise MOCA on measures to be taken to fill the gaps.

2.9. Scope of Services

The scope of work for the study should cover, but not limited to, the following areas, as outlined in the Contract: Skill Gap Analysis: The Consultant shall–

 Conduct detailed study, collect data, analyse, and document the gaps in skilled manpower availability with quantities at present while making projections for the future upto the year 2030-35 in Aviation sectors/sub-sectors covering - Airports (Runway, Taxi maintenance staff, Airport Rescue and Fire fighting, Terminal equipment O&M staff, Fuel Complex technical personnel, Cargo loaders and unloaders, Freight forwarders, CNS equipment maintenance staff); Airlines: Flight attendants, Aircraft technicians, Ground Handling Agents, Gate attendant,, Route Planner, Flight Dispatchers, Crew Operations Manager, , Aviation Safety and security officers; MRO; Airframe and Power plant technicians, Avionics Technicians, Planning and Control technicians, Quality Control technicians, Demand Planners, Material Management staff, Hanger Supervisor.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 38

Final Report

Pilots and other categories of staff, whose appointments are as per prescribed technical qualifications, are also to be covered w.r.t availability gap. (Aerospace Manufacturing excluded from the study.)

 Consult/Interact through meetings and field visits with decision makers/key personnel in all sections of Aviation Industry, AAIB (covering Safety and Security aspects) and Training Providers (both Private and Public) and ascertain the various categories of Operational and Managerial manpower involved in various segments i.e. airlines, cargo, airports, MRO segments etc., in the performance of the Civil Aviation Sector. Sample size may be as under: Airport: (International) Operators – Apart from AI, Private/Joint Venture domestic Company. Airlines: Air India and at least any other 4 best performing airlines in terms of Pax and on- time performance. The study is expected to cover Airports, Airlines, and MRO segments.

 Discuss and collect data regarding capabilities of various categories of staff and short- comings noticed and suggestions offered by the Stakeholders.  Document the type of difficulties being experienced i.e. lack of basic skills, updated skills in the work being performed by the staff etc. and categories in which skilled manpower is not readily available to be absorbed by the sector.  Interact with operational/managerial employees and assess and document the current capabilities/skills of the available manpower in the Sector with reference to each job profile and identify the qualitative skill shortages, areas of re-skilling and multi-skilling requirements. The study shall be undertaken at the grade/function level.  Study and document competence gaps for in-service managerial category staff in all concerned civil aviation segments.  Study and document skill/knowledge gaps for in-service operational category staff in all concerned civil aviation segments.  TRAINING INFRASTRCUTURE ASSESSMENT: The Consultant shall –

 Assess adequacy or otherwise of the existing training Institutions, aids/amenities in the existing institutions offering aviation related training courses, with reference to the demand for skilled manpower in the aviation sector; The Consultant may visit the Institutes offering aviation related courses in different disciplines as under: Aircraft Maintenance Engg: DGCA approved Institution – Minimum one in each region Central, North, South, West and East. Cabin crew/In-flight services: Minimum one public and five private Airlines. Dangerous Goods: Minimum one public and two private operators. Airport ground handling: One each recognized by DGCA/State or Central University/AICTE/UGC. Basic Cargo Operations: Minimum One Autonomous Body and at least two UGC/DGCA/University approved Institutes.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 39

Final Report

 Undertake field visits to various existing aviation related training Institutions (both public & private) in various regions of the country, interact with Heads of the Institutions, participants (trainees) and Training Providers on the training courses being offered and their acceptability by the industry.  Evaluate the courses being offered/skills imparted, relevance, course curriculum, duration, teaching methods, availability and quality of faculty (segment level) etc. at the above Institutions.  Assess the employability and placement opportunities of the persons who underwent the courses being offered currently.  Study and analyse the in-service training being provided to various categories of personnel and scope for improvement. RECOMMENDATIONS & REMEDIAL MEASURES: Based on Study, Research & analysis of data collected, the Consultant shall –

 List out categories and volumes in which shortage of skilled manpower in managerial and operational functions is noticed in the aviation sector.  Recommend concrete measures to fill the gap of skilled manpower shortages in general and in identified categories in particular, as also in areas requiring re-skilling and multi-skilling, to meet the current and future needs of the Aviation Sector.  Suggest best teaching/training practices followed in aviation related skills elsewhere in the World and methodology for its adoption in the Indian civil aviation sector. No visits outside India are envisaged.  suggest in detail any alterations/augmentation to the existing courses/training (including in- house training) being offered and need for developing tailor-made courses, new course modules/competency standards to ensure requisite employable skilled and quality manpower availability for the Aviation Sector. Recommendations shall be at segment level.  Suggest improvements in the infrastructure of the existing training institutes in aviation sector and need for establishment of new training institutes or Specialised Skill Development Centres along-with likely location, in PPP mode or other means. Identify and suggest training improvement areas to be carried out by DGCA.  Assess the adequacy of existing training institutions and list out other Training Institutes (run by Central Govt., State Govt., Autonomous Bodies, Private Bodies) in the country which can be drafted or linkages established with, to meet the skill development training requirements of civil aviation sector and the modalities to achieve it.  Suggest appropriate Accreditation Methodology/Authority for the Training Programmes conducted and Certificates awarded, to create acceptability of such Certificate by the Industry universally.  Suggest implementation methodology or any Scheme, to meet Skill Development and re- skilling, multi-skilling requirements in various disciplines of aviation sector and also assess funds required for the purpose etc.  The extent of role the Aviation University and the private sector can play in Skill Development Activities of the Sector.  Synergies with NSDC & NSDA

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 40

Final Report

This report presents the key findings of the captioned study and has been organized across the following key segments. 2.10. Report Structure

Table 3: Report Structure Report segment Brief Outlines the study objectives, scope of work, approach, sample Study introduction and key study limitations This chapter maps the study segments airport, airline, MRO, cargo and ground handling from a global and Indian perspective. Segment –wise analysis across Also, the organizational and functional characteristics of the airport, airline, MRO, cargo and study segments namely airport, airline, MRO, cargo and ground ground handling handling. From herein, the key skill gaps are outlined across the critical job roles This chapter outlines the human resources requirement for the next 20 years (upto 2035) in the following key intervals – Forecasting of Human Resources  2015 - 2025 Requirement  2025 - 2035 The overall numbers (2015-2035) are also mapped Analyses the training ecosystem as well as maps the typical in- Demand-Supply analysis – service training modules for the study segments. mapping of training infrastructure From the analysis, the key challenges in the training ecosystem are outlined Sets the roadmap for MoCA for comprehensive skill building Recommendations across the segments

2.11. Study Limitations

Focus on core civil aviation specific functions and skills: The following functions were not mapped as part of this exercise as these functions are not part of core MoCA mandate:

 Retail, CISF, food stalls, parking and facility management, gardening, spa, ATM management, lounge, customs, immigration, airline web designers, e-commerce, air magazines, media, shopping centres like AVA, oil companies/fuel  The same has been discussed with MoCA at the study inception stage and agreed upon  Due to non-availability of data points, we have derived some of the data points based on discussion with stakeholders.

The following chapters give the overview of the various segments of India’s civil aviation industry such as Airports, Airlines, Maintenance Repair and Overhaul (MRO), Ground Handling and Cargo on the sector & sub-sector analysis and on the employment structure & skill requirement analysis.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 41

Final Report 3. Segment- Airport This chapter shall focus on the macro environment and identify key factors that have led to the growth/changes of Airports. Any change in the macro environment scenario in terms of investment flow, change in technology, etc is likely to impact the human resource requirement and the quality of human resource requirement of the sector and study segments. Airport segment was analysed from a global and Indian perspective. Building on the segment & sub-segment and functional analysis of the Airport segment, this chapter also maps the employment structure analysis which outlines the key skill requirements across critical job roles. Functional analysis is the main tool for mapping the key roles and responsibilities of the function; after mapping the overall organisation structure. Functions are thus discrete-ised in the organization structure and the key roles that are required to perform the function are delineated and identified. Across these roles the key skill building requirements are identified. Some of the key aspects that have been mapped as part of this analysis are: Table 4: Key Aspects Key terms used Brief description Function is an activity necessary for achieving the key purpose of the sector, occupation, or an area of work, which can be carried out by a Function person or a group of persons. Functions are identified through functional analysis Sub-functions are sub-activities essential to fulfil for achieving the Sub-function objectives of the function Job role defines a unique set of functions that together form a unique Job role employment opportunity in an organisation

Source: NSDC The above key concepts have been illustrated below:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 42

Final Report

Illustration

Functional analysis Function – Airport services

Functions dis-aggregated to map all core and support functions at individual process level

Occupations – Check-in, Occupational analysis baggage management Unique occupations identified for Various functions

Identification of job Job roles snapshot: roles Check-in agent Floor walker Unique job roles (unique set of activities that Supervisor together form unique employment opportunity) Screener identified. Capacity building requirement analysed at job role level

The following structure has been adopted for this chapter, which are covered in the subsequent sections, segment-wise:  Overall typical organization structure  Brief description/objective about the functions  Further detailing on key civil aviation specific function  Typical HR structure across the above function  Outline of critical job roles  The respective skill gaps  The career progression opportunities

3.1. Segment & Sub-Sector Analysis

The last 20 years have seen the evolution of an airport from being a public sector infrastructure provider to sophisticated business–oriented service providers. This has been primarily driven because of emergence of airport competition. The airport and aviation industry has become more commercially focused leading to a more competitive and dynamic market. The profitability of the airport industry depends on demand; traffic and the supply; availability of infrastructure; and services. Airports constantly strive to increase the revenue from diversified sources such as aeronautical, non- aeronautical and non-operating activities.

 Aeronautical—Charges for services or facilities directly related to the processing of aircraft and their passengers and cargo in connection with facilitating travel.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 43

Final Report

o Applied on Passengers—Passenger service charges, security, transfer charges etc., o Applied on Aircraft Operators—landing, parking, boarding bridges, lighting and airport related navigational aid charges.  Non-aeronautical—Charges related to the ancillary commercial services, facilities and amenities available at an airport. o Rentals for airport land, space in buildings (including advertising space) and equipment. o Fees charged for tours, admissions etc. o Fees derived from provision of engineering services, utilities, etc., by airport operator.  Off-airport (or non-operating) Revenues—Revenues derived from activities which are not related to the movement of aircraft, passengers and cargo through the subject airport. o Consulting services o Education and training services o Management contracts at other airports o Management contracts for other activities o Equity investments in travel-related or other ventures o Equity investments in other airports The non-aeronautical revenues are critical for the sustainability of the airport performance as it can reduce operating costs for aircraft operators at an airport with a “dual-till” operating environment. “Dual till’ system splits the aeronautical and non-aeronautical business into distinct income and expenditure accounts. This ensures that income from the aeronautical side of the business are used for aeronautical expenditure (such as runway repairs and terminal development), leaving the non- aeronautical income to provide for non-aeronautical expenditure (building new car parks and expanding retail sections of a terminal) and to boost overall company profits. The global and Indian analysis of the segment in terms of existing infrastructure & traffic flow, economic performance and future growth has been detailed in the following sections. 3.1.1. Global Perspective

Airport segment like any other in aviation industry is a direct contributor of employment and economic activity. In 2012, the global airport industry contributed to 0.2% of global GDP and generated direct employment of 5.28 million (including Air Navigation services)16. There are 41,821 airfields in the world including military and general aviation out of which 3,864 are airports with scheduled commercial flights. The United States (US) had by far the largest number of airfields (13,513), followed at a distance by Brazil (4,093), countries in the European Union or EU (3,102), Mexico (1,714), Canada (1,467), Russian Federation (1,218), and Argentina (1,138).17

16 ATAG - Aviation Benefits Beyond Boarders 2014 17 IATA

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 44

Final Report

Figure 3: Region-wise distribution of Infrastructure and Employment Generation

Distribution of Commercial Airports Airport-Direct Employemnt

Africa 31% North 11% 29% America 20% 26% Asia Pacific 10% Middle 28% 5% 4% East Latin 4% America Europe 19% AfricaAsia PacificEuropeLatin AmericaMiddle NorthEast America 12%

Source: ATAG The Asia-Pacific region has the highest share of commercial airports (28%) and the second highest share of employment generation. At the global level, Airport Council International (ACI) is the only global trade representation of the world’s airports. ACI promotes professional excellence in airport management and operations and as of January 2015, it accounted for 590 members operating 1,890 airports in 177 countries; and over 95% of global airport traffic. In terms of ownership, according to the 2012 ACI Economics Report, 74% of the airports were publically owned, 19% operated in public private partnership (PPP) mode, and the remaining were fully privatised. As per ACI, 450 airports had some form of private sector participation as of 2012. Of this, the most common mode of participation was concessions (251 airports), followed by outright ownership (152 airports), and management contracts (47 airports). Of these, 24 airport companies in 15 countries were listed on stock exchanges. Figure 4: Private Sector Participation—Number of Airports by Region (2011)

Africa North Middle East 5% America 1% Asia-pacific 3% 22%

Europe Latin America 38% 31%

Source: ACI Around 80% of the airports are of size less than 5 million passengers (small airports) and account for only 17% of the passenger traffic with high traffic volumes concentrated in only a handful of large

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 45

Final Report airports18. The performance of the airports across the globe in terms of traffic (passenger and cargo) and economics are detailed in the following section. 3.1.1.1. Traffic Trends

Airport performance is linked to the airline operations—passengers and cargo traffic. Based on historical data, traffic usually has a direct correlation with growth in global economic activity. Negative shocks such as the 9/11 (September 11, 2001 terrorist attacks in the US) tragedy, Severe Acute Respiratory Syndrome (SARS) crisis in 2003, and 2008-09 recession resulted in sharp declines in passenger traffic. The 9/11 attacks resulted in an overall year-over-year decrease of 13% in passenger traffic for September 2001, only recovering to pre-9/11 levels in 2003. In the midst of the SARS outbreak, passenger traffic declined by over 5%. During the last few years there has been a marked divergence in growth of airports and associated activities located in the emerging and mature markets. Mature markets of North America and Europe experienced modest growth levels whereas the major emerging economies such as Brazil Russia India China and South Africa (BRICS) posted significant gains in passenger and cargo traffic year after year. 3.1.1.2. Passenger Traffic

The table below shows the passenger traffic in the airports as per region. Table 5: Region-wise Passenger Traffic at Airports 2011 2012 2013 2014 CAGR Passenger Traffic (millions) (2012-14) Africa 153 163 164 180 5.6% Asia/Pacific 1,558 1,685 2,060 2,300 13.9% Europe 1,572 1,615 1,730 1,800 4.6% Latin America/Caribbean 410 444 501 531 9.0% Middle East 222 254 278 308 11.5% North America 1,530 1,562 1,570 1,600 1.5% Total 5,445 5,723 6,303 6,719 7.3% Source: ACI  Worldwide airport passenger numbers increased at a CAGR of 7.3% over 2011 to 2014 to over 6.7 billion. CAGR of passenger traffic was highest for emerging and developing countries with Asia-Pacific growing at 13.9% and Middle-East at 11.5%.  Atlanta (ATL), US remain the world’s busiest airport with 96 million passengers in 2014. Traffic at the airport was up 1.9% over 2013. The second-ranked airport was Beijing, China with 86 million passengers. Beijing Airport experienced more subdued growth of 2.9% in 2014 as compared to the double-digit growth it had achieved in previous years. Chicago, US is the busiest airport in terms of aircraft movement.  Asia/Pacific registered the maximum passenger traffic share of about 34% in 2014. Share of passengers in emerging markets was at 43%.  Compared with 22% in 2000, the proportion of global passenger traffic handled by emerging markets almost doubled to 42% in 2013.

18 Source: ACI, IATA, IMaCS analysis

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 46

Final Report

 Most airports across the world are small, with high traffic volumes concentrated in only a handful of airports. 3.1.1.3. Freight Traffic

Globally, a total of 102 million tonnes (mt) of cargo was handled in the airports in 2014. An estimated 40% of the freight is handled in the airports in Asia-Pacific region followed by North America at 28%. Hong Kong (HKG) and Memphis (MEM) take the first and second places respectively for the busiest air cargo airports with 4.4 million and 4.3 mt, respectively, of cargo handled in 2014. Figure 5: Region-wise Cargo Traffic (102 million tonnes in 2014)

2% Africa

28% Asia/Pacific 40% Europe Latin America/Caribbean 18% 7% Middle East 5% North America

Source: ACI  40% of the freight is handled in the Asia-Pacific region followed by North America which is at 28%. Hong Kong (HKG) and Memphis (MEM) take the first and second places respectively for the busiest air cargo airports with 4.4 million and 4.3 million metric tonnes in 2014.  Air cargo handled by emerging market airports jumped from 21% of world volume in 2000 to over one-third of global cargo volume in 2013. Asia-Pacific region has seen the maximum growth of passenger traffic (CAGR of 13.6%) and now accounts for the maximum share of cargo volume (40%). 3.1.1.4. Airport Economics

The global airport industry reported total annual income of USD 131 billion in 2014 with European market accounting for 38%19, followed by Asia-Pacific at 28%, and North America at 22%. The regions with the highest growth in revenues saw highest growth in passenger traffic. Asia-Pacific, the Middle East and Latin America-Caribbean saw overall revenues increase by 11.8%, 11.6% and 6.8% respectively20.  Aeronautical revenues constituted about 65% of the revenue and passenger-based revenues comprised 66% of the aeronautical revenues.  Retail concessions is the leading source of non-aeronautical income for airports, representing 27% of non-aeronautical income, followed by car parking income at 20%, and property income/rent at 18%.

19 Although Europe occupied a significant proportion of the world’s airport revenues, it has experienced the weakest growth in overall revenues at 2.3% during 2014 20 ACI Economics Report, 2014

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 47

Final Report

 Airport industry is profitable as a whole but as many as 67% of airports globally operate at a net loss, with 80% of airports that service fewer than 1 million passengers per year posting net losses.  Profitability primarily generated from the 20% of airports that carry the bulk of passenger traffic which shows the pressure on the handful airports. 3.1.1.5. Growth Trends

ACI forecasts that passenger and air cargo demand for air transport will more than double in volume by 2031 (rising at more than twice the rate of global GDP), rising to over 12 billion passengers and more than 200 mt of cargo with emerging markets in the Asia-Pacific region leading the growth. This change in dynamics is because of the demography of these markets—most of the world’s population reside in the developing countries. Liberalisation of air transport, sizeable population bases and rapid rises in per-capita incomes in these markets are the main growth drivers. However, the above demand potential is likely to be realised only if there is adequate supply of airport services; terminal, runway and aircraft stands. A large number of major international airports continuously operate at or over capacity. It is due to their efficiency, flexibility and innovations that the global air transport system has been able to absorb ever growing passenger numbers. As per ACI, there is a positive correlation between passenger traffic volume and the physical size of the terminal, it may be concluded that the area of passenger terminals would need to double in size to accommodate the proportional doubling of passenger traffic by 2031 at the global level. Apart from infrastructure expansion, factors such as greater wide-scale adoption of larger aircrafts, extended operating hours, enhanced operational efficiencies, increase in capacity and increased flight frequencies are necessary to alleviate the supply-side bottlenecks. Emerging markets (including India) which could see the maximum demand increase will need to invest significantly in airport infrastructure development. 3.1.2. Indian Perspective

The airport segment of India contributed to USD 1.4 billion to Indian GDP and a direct employment of about 22,000 persons, as of 2015. There are about 476 airstrips of which 75 have scheduled operations. The nodal stakeholder in the airport segment in India is the Airport Authority of India (AAI). Airports are primarily developed under three models in India, as detailed below:  By Airport Authority of India (AAI)—125 airports of which 95 are operational  By Central Government/ State Government/ North Eastern Council—8 airports  By Public Private Partnership (PPP) mode—6 (handle 60% of the domestic traffic) Principles for Development of Airports  District level airport with population less than 0.2 million should have the facility to cater for aircraft having seating capacity of 30 seats, Aerodrome reference code – “2B”.  Tourist/pilgrimage centres should have the facility to cater for aircraft having seating capacity 30 to 80 seats, Aerodrome reference code – “3C”.  State Capital Airport should have the facility to cater for aircraft having seating capacity 80 to 200 passengers, Aerodrome reference code – “4C”.  Commercial centres or towns should have the facility to cater for aircraft having seating capacity 200 to 250 passengers, Aerodrome reference code – “4D”.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 48

Final Report

Principles for Development of Airports  Non-metro international airports should have the facility to cater for aircraft having seating capacity 250 & above, Aerodrome reference code – “4E”.  Special requirement of air connectivity to North Eastern (NE) region, Jammu & Kashmir (J&K), Andaman & Nicobar (A&N) islands, Lakshadweep islands as socio-economic commitment.  Development of heliports for air connectivity through helicopter services in remote areas in J&K, Madhya Pradesh (M.P), Chhattisgarh, Orissa, Arunachal Pradesh (A.P), Gujarat etc.

Airport Authority of India—At present AAI manages 125 airports21, which include 18 International Airports, 7 Customs Airports, 77 Domestic Airports, and 26 Civil Enclaves at Defence airfields where it handles civil flight operations. AAI provides air navigation services over 2.8 million square nautical miles of air space which includes land area of 1.05 million square nautical miles, and oceanic airspace measuring 1.75 million square nautical miles. Table 6: List of Airports Managed by AAI

INTERNATIONAL AIRPORTS—AAI Managed INTERNATIONAL AIRPORTS—PRIVATE 1. Netaji Subhash Chandra Bose International Airport, Kolkata 1. Indira Gandhi International Airport, Delhi 2. Chennai International Airport, Chennai 2. Chattrapati Shivaji International Airport, Mumbai 3. Thiruvananthapuram International Airport 3. GMR Hyderabad International Airport, Hyderabad 4. Sardar Vallabh Bhai Patel International Airport, Ahmedabad 4. Bangalore International Airport Limited, Bengaluru 5. Guru Ram Dass Jee International Airport, Amritsar 5. Cochin International Airport, Kochi (Private) 6. Lokpriya Gopinath Bordoloi International Airport, 6. Bharat Ratna Babasaheb Dr. B.R. Ambedkar International Guwahati Airport, Nagpur (Maharashtra) 7. Jaipur International Airport 8. Kozhikode Airport, Calicut CUSTOM AIRPORTS 9. Coimbatore International Airport 1. Coimbatore International Airport 10. Trichirapalli International Airport 2. Gaya Airport 3. Chaudhary Charan singh International Airport, 11. Lal Bahadur Shastri International Airport, Varanasi Amausi, Lucknow 12. Chaudhary Charan singh International Airport, Amausi, Lucknow 4. Mangalore 5. Jay Prakash Narayan International Airport, Patna 6. Trichirapalli International Airport 7. Lal Bahadur Shastri International Airport, Varanasi CIVIL ENCLAVES 1. Agra 13. Jodhpur 2. Allahabad 14. Jorhat 3. Bangalore 15. Jaisalmer 4. Bhuj 16. Kanpur (Chakeri) 5. Chandigarh 17. Leh 6. Gorakhpur 18.Pathankot 7. Gwalior 19. Silchar 8. Jammu 20. Tezpur 9. Jamnagar 21. Visakhapatnam 10. Goa 22. Port Blair 11. Srinagar 23. Pune 12. Bagdogra OPERATIONAL DOMESTIC AIRPORTS* 1 Agartala 23 Kullu (Bhuntar)

21 Soure: AAI

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 49

Final Report

2 Agatti 24 Lilabari (North Lakhimpur) 3 Aurangabad 25 Ludhiana 4 Behala 26 Madurai 5 Belgaum 27 Mysore 6 Bhavnagar 28 Pantnagar 7 Bhopal 29 Pondicherry 8 Bhubaneshwar 30 Porbandar 9 Dehradun 31 Raipur 10 Dibrugarh (Mohanbari) 32 Rajamundry 11 Dimapur 33 Rajkot 12 Gondia 34 Ranchi 13 Hubli 35 Safdarjung (Delhi) 14 Hyderabad (Begumpet) 36 Salem 15 Imphal 37 Shillong (Umroi) 16 Indore 38 Shimla 17 Jabalpur 39 Surat 18 Juhu (Mumbai) 40 Tirupati 19 Kandla 41 Tuticorin 20 Kangra (Gaggal) 42 Udaipur 21 Kanpur (Civil) 43 Vadodara 22 Khajuraho 44 Vijayawada Source: AAI. *there are 33 non-operational AAI airports By State Government—State Governments have undertaken development of airports at their own expenses or on PPP mode such as Maharashtra (Navi Mumbai), Karnataka (Bijapur, Gulbarga, Hasan and Shimoga), Kerala (Kannur), Uttar Pradesh (Kushinagar) and Goa (MOPA). AAI provides technical assistance on the DPRs of such projects and undertakes pre-feasibility studies for site clearance of proposed sites. By Public Private Partnership (PPP) mode—Presently, India has five PPP airports (excluding Nagpur) each at Mumbai, Delhi, Cochin, Hyderabad and Bangalore, which together handle over 60% of the country’s air traffic. Table 7: PPP-Mode Based Airports in India* Type of Project/ Name of airport Operator Revenue Sharing PPP Structure Chhatrapati Shivaji Mumbai International Airport 38.7% of gross revenue Brownfield/BOOT International Airport (MIAL) to be shared with AAI Indira Gandhi International 45.9% of gross revenue Delhi International Airport (DIAL) Brownfield/BOOT Airport to be shared with AAI Concession fees—4% of Rajiv Gandhi International GMR Hyderabad International Greenfield/BOOT gross revenue to be Airport Airport Ltd (GHIAL) shared with AAI Concession fees—4% of Bengaluru International Bengaluru International Airport Greenfield/BOOT gross revenue to be Airport Limited (BIAL) shared with AAI Payment of dividend to Cochin International Airport the Government towards Cochin International Airport Greenfield/BOOT Limited (CIAL) their 26% of equity capital Source: CMIE, IBEF, IMaCS Analysis.*Apart from the above 5 PPP airports, Bharat Ratna Babasaheb Dr. B.R. Ambedkar International Airport, Nagpur (MIPL - MIHAN) developed as a multi-modal cargo hub is also a privately managed airport. The performance of the airports in India in terms of traffic (passenger and cargo) and economics are detailed in the following section

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 50

Final Report 3.1.2.1. Traffic Trends at Key Airports

During FY2009 and FY2010, the sharp drop in airline profitability across the world and particularly in India, led to airlines stopping unprofitable flights or decreasing their frequencies. During FY2011, there was a recovery in activity, and traffic increased in the second half of FY2011 in all the key airports of India. During FY2012, the highest aircraft traffic was recorded at Delhi International Airport followed by Mumbai. However, the maximum aircraft traffic growth of 24.5% was recorded by Jaipur Airport followed by a growth of 23.9% at the Pune Airport. While aircraft traffic at Delhi grew 15.6% (yoy), traffic at Mumbai increased 3.6% (yoy) during FY2012. Thus smaller cities reported higher growth than the larger cities partly due to a lower base effect. From March 2012 onwards the industry experienced a slowdown in traffic. For the period from April 2012 to August 2012, traffic contracted at all the major airports except Jaipur and Pune. The highest decline of 11% was recorded by Bangalore airport during this period. Delhi and Mumbai, the two largest airports in the country, saw decline of 0.2% and 3.3% respectively. During FY2015, Delhi and Mumbai airports witnessed increase in aircraft traffic by 3.4% and 3.3% respectively. Traffic at Bangalore airport increased by 13.3%. Figure 6: Air Traffic across Major Airports (Number)

30,000 Bengaluru (Intl.) Chennai Delhi-IG Hyderabad Jaipur Kolkata Mumbai Pune 25,000

20,000

15,000

10,000

5,000

11 12 13 14

11 11 12 12 13 13 14 14

11 12 12 13 13 14 14 15

12 11 13 14

- - - -

------

------

- - - -

Jun Jun Jun Jun

Oct Oct Oct Oct

Apr Apr Apr Apr

Feb Feb Feb Feb

Dec Dec Dec Dec

Aug Aug Aug Aug

Source: Government of India, IMaCS Analysis Domestic freight traffic increased more than twice over the past decade from 456 thousand tonnes in 2005 to 986 thousand tonnes in FY 15. Around 91% of the domestic freight traffic is concentrated in the top 10 airports. International freight traffic increased from 823 thousand tonnes in FY 05 to 1,542 thousand tonnes in FY 15. An estimated 99% of the domestic freight traffic is concentrated in the top 10 airports. The year 2011-12 and 2012-13 saw a drop in freight traffic across the globe as well as India. In the following years the freight traffic has recovered.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 51

Final Report

Figure 7: Share of Top 10 Airports in Total Domestic Freight Traffic during 2014-15

Total domestic freight- 986 thousand tonnes

28% 21% 11% 9% 8% 4% 4% 3% 1% 1%

Source: DGCA

Figure 8: Share of Top 10 Airports in Total International Freight Traffic during 2014-15

Total international freight- 1,542 thousand tonnes

32% 28% 14% 11% 4% 4% 3% 2% 1% 1%

Source: DGCA Uneven distribution of traffic has led to heavy pressure on the limited terminal capacity of over- utilised airports resulting in increased congestion, bunching of flights, delays in passenger clearances, and higher operating costs for airlines. 3.1.2.2. Economy

As per the Annual Report of AAI (2014), the revenue stood at USD 1.4 billion.

Figure 9: AAI Revenues (FY 2014)—USD 1.4 billion Other Income Airport 2% Navigational Airport Lease Services revenue 27% 33%

Airport services Cargo Revenue 26% 2% Non-Aeronautical airport services 10%

Source: AAI Annual Report, 2013-14  Air Navigation Services (ANS) accounting the maximum share of total revenues at 33%.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 52

Final Report

 Airport service which includes Landing, Parking and Housing, Passenger service fees, user development fees, Ground handling, etc. accounted for 26% of total revenues.  The non-aeronautical revenues accounted for 10% of the total revenues with rental income accounting for the maximum non-aeronautical income share of 40% followed by trading concession at 37% and parking at 7%. 3.1.2.3. Growth Trends

With the rising middle class and propensity to travel, India’s airport traffic is expected to increase many folds. As airport development is considered a basic infrastructure requirement for connectivity, an investment of Rs. 87,714 crore has been budgeted in the 12th Five Year Plan (2012- 2017) which is significantly higher than the investment in the 11th Five Year Plan (2007-12). Around 89% of the investment is envisaged to come through private investment which is 3 times that in the previous plan. To cater to the traffic apart from those travelling within the region, expansion of airports and runways is necessary along with improvement in other factors like extended operating hours, enhanced operational efficiencies, increased capacity and flight frequencies. The Draft Aviation Policy, 2015 highlights the provisions taking all the challenges into cognisance. MoCA aspires to take flying to the tier 2 and tier 3 locations across India as well. The Draft Policy further expounds on the Regional Connectivity Scheme (RCS) which will come into effect from 1 April 2016. The key highlight with regard to the RCS is that MoCA will target an all-inclusive airfare not exceeding Rs 2,500 per passenger, indexed to inflation for a one-hour flight on RCS routes. This will be implemented by way of:

 Revival of un-served or under-served aerodromes and airstrips.  Concessions by different stakeholders.  Viability Gap Funding (VGF) for scheduled commuter airlines.  Cost-effective security solutions by BCAS and State Governments. Currently around 75 out of 476 airstrips/airports have scheduled operations. Revival of air strips, depending on demand, as No-Frills Airports, will be done at a cost not exceeding Rs 50 crore, mostly through AAI. The other provisions under the draft National Civil Aviation Policy, 2015, have the potential to improve the operating margins of airport either directly or indirectly.

Draft Civil Aviation Policy, 2015—Key Features Continue to encourage development of airports by the State Government or the private sector or in PPP mode.  MoCA will coordinate with Airport Economic Regulatory Authority, AAI, airlines, airport operators and stakeholders like cargo, MRO, ground handling, etc to identify ways to bring down airport charges, while abiding with existing concession agreements and contracts.  MoCA will endeavour that future airport projects in India, both Greenfield and Brownfield have cost efficient functionality with no compromise on safety, security and efficiency.  Operators of future airport projects will not levy airport charges, concession fee and royalties etc on MRO, cargo, ground handling, ATF infrastructure other than a reasonable lease rental.  The capital expenditure of all future Greenfield and Brownfield airport projects promoted by AAI in PPP mode will be monitored closely by AAI. Due stakeholder consultation will be carried out before the project cost is finalised.  Tariff at all future airports will be calculated on a ‘hybrid till’ basis. 30% of non-aeronautical revenue will

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 53

Final Report

Draft Civil Aviation Policy, 2015—Key Features be used to cross-subsidise aeronautical charges.  MoCA will explore ways to unlock the potential of the same by liberalising the end-use restrictions for existing (excluding PPP) and future airports of AAI and future airport projects under PPP.  MoCA will coordinate with respective ministries and state governments to provide multi-modal hinterland connectivity (road, rail, metro, waterways, etc as relevant).  MoCA and AERA will encourage all airport operators to make use of this facility to extend the loan repayment schedule. The revised schedule will be taken into consideration during tariff calculation. Airports Authority of India (AAI)  AAI will take up new Greenfield or Brownfield airports subject to the following conditions: o Project should be financially viable with non- zero IRR, except for no-frills airports developed under RCS. o State/Central government will provide VGF to AAI if the project is strategically important but financially unviable. o Land will be provided free of cost by state government without treating it as equity. o Land will include sufficient space on city side for commercial use subject to land use regulations of the State Government.  Land will include sufficient space on city side for commercial use subject to land use regulations of the State Government.  In order to fast-track capacity enhancement at the existing airports to meet the demands of increasing traffic and to avoid air congestion, brown-field airport projects as well as expansion projects will be exempted from obtaining Environment Clearance.  AAI may be suitably compensated by Government of India and/or the relevant State Government in case a new Greenfield airport is approved in future within a 150 km radius of an existing operational AAI airport (not applicable to civil enclaves).  AAI will continue to modernise existing airports and upgrade quality of services. AAI will maintain an ASQ rating of 4.5 or more across all airports with throughput above 1.5 mppa and ASQ rating of 4.0 or more for the rest.  AAI will also explore the possibility of giving out O&M contracts for a cluster of existing and/or new airports.  AAI airports with throughput above 0.5 mppa will strive to generate non-aeronautical revenue in excess of 35% of the airport’s total revenue.  AAI will strive to minimise the royalty, lease rent and other levies imposed on cargo, MRO, ground handling companies and flying training schools. The significant improvement in traffic and infrastructure should be supported by the increase in skilled labour and in turn the training infrastructure and services. 3.2. Employment Structure and Skill Requirement Analysis

The airport is the nodal segment which hosts the air travel and is a complex ecosystem which interfaces with various stakeholders that have an impact on the airport’s overall performance. These stakeholders are: • AAI • AERA • DGCA • BCAS • CISF • Customs • Private taxi • State transport

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 54

Final Report

• Retailers • Hotels and spa • Customers • Airlines • Contractors The interplay between these stakeholders results in how the functions have been organized and service delivered. Any airport is typically divided into three areas for creating systems and processes that drive towards seamless passenger and cargo management.

Table 8: Areas in airport

Area Brief description The area in the airport that has the runways, aircraft movements, Airside lighting systems, tarmac, etc The terminal building is the place where passengers, luggage and Terminal freight change between the surface mode and the air mode. It is essentially a processing facility The road ways and the area that leads to the terminal are called the Landside landside. This includes the taxi bays, bus bays, ticketing zones, etc

Thus, the starting point for analyzing the organization structure and extracting the core civil aviation specific areas for skill development is to map the universe of airport operations and interfaces as a whole, which is exhibited below.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 55

Final Report

Figure 10: Airport operations – universe

Airport

Interfaces with Interfaces with Organizational processes

Core processes Support that build processes that Safety and operational enhance service security efficiency quality

Any airport primarily has two key blocks which lead to its organizational processes and operations:  Regulators: the nodal authorities that direct and set the standards to which the overall operations and organizational processes should direct towards. These include entities like MoCA, AAI, BCAS, state government, etc

 Customers: overall customer satisfaction is the aim of any airport. These customers may be internal or external. The former represents the CISF, commercial entities, retail bodies, etc and the latter are the passengers. The organizational processes should converge at providing the customers with highest quality service The organizational processes thus interface with the above two blocks and are constructed around the typical airport areas to create seamless, safe and secure operations. These processes can be further demarcated into three key aspects: • Core processes that build operational efficiency • Safe and secure travel • Support processes that enhance service quality

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 56

Final Report

In-line with the above framework, any airport has the following functional structure:

Figure 11: Airport functional structure

Airport area Key functions

1. Airside management Airside 2. Air Navigation Services#

Terminal 1. Terminal management (including City side management) 2. Cargo management

City side Function is required in all areas in airport

1. Engineering and maintenance 2. Security

Other support functions – commercial, legal, HR, finance, IT, marketing, customer service, environment, land management, materials management, etc

# ANS will be mapped as a separate service The core functions are airside management, terminal management, engineering and maintenance, cargo management and safety and security, etc. The other functions are support functions that feed into the overall operations of the airport. As outlined earlier, in India, airports have the following operational structures:

 By Government – Airport Authority of India (AAI) / State Government  By Public Private Partnership (PPP) model The typical organization structure of the government operated and private operated airports are highlighted below:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 57

Final Report

Figure 12: Aerodrome organization structure – Government

Airport Director

Dy. Director I Dy. Director II

General Manager (D1) General Manager (D14)

A Jt. General Jt. General Manager Manager

Dy. General Asst. General Dy. General Asst. General ……………………… Manager Manager Manager Manager

Senior Manager Senior Manager

Manager Manager

Asst. Manager Asst. Manager

B Jt. Executive Jt. Executive

Sr. Superintendent Sr. Superintendent

Superintendent Superintendent

Supervisor Supervisor Non-Executives Sr. Assistant C Sr. Assistant

Assistant Assistant

Jr. Assistant Jr. Assistant

Sr. Attendant Sr. Attendant Attendant D Attendant Jr. Attendant Jr. Attendant Source: AAI airports interaction. D1 to Dn represents the various functions

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 58

Final Report

Figure 13: Private airports structure

CEO

COO Finance Commercial Real Estate

Human Resources Airside Operations Aero Marketing Urban Planning

Environment Terminal Ops & Cust. Service Slot Mgmt. Management Assu. Corp Rel. & Admin Landside Cargo CEO’s Office Corp. Affairs (Delhi) Housekeeping Pranaam Services Legal Execution Information Technology Security Corp. Comm. Engineering & Maintenance

Ops. Procurement Compliance & Quality Assu.

Regulatory Baggage Operations

AOR Safety

Horticulture Joint Control Centre

General Aviation

Source: MIAL – GVK

CEO-DIAL

Head- CCO-Non ED- COO CPEO Head-Corp Head- CFO CCO-Aero COO-CPD CIO (VP) Contract & Head-SPG CHRO Aero Security (EVP) (EVP) Comm Legal Procurement (AVP)

Source: DIAL – GMR

The airport organization structure is typically headed by the airport director (APD) or the MD, the latter in the case of the PPP airports. Under the head the various functions are organized, as depicted above. The private airports have a more functionally dispersed structure and the AAI airports, though might not have function in the same name, these functions do get performed under other functions. Another aspect in the aerodrome operations is that the personnel are mainly involved in monitoring and management while the bulk of the work is outsourced. Going forward

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 59

Final Report the core aerodrome functions will be analyzed in detail to highlight the critical job roles and skill paucities. The core, on-roll human resources are distributed across the functions in the following manner:

Figure 14: Functional distribution of human resources (100% ~ 23,000)

airside management 17%

terminal cargo management 8% 41% engineering and maintanance 10%

security other and safety functions 9% 15%

Source: Airports discussion. Other functions indicate the support functions like commercial, legal, HR, finance, IT, marketing, customer service, environment, land management, materials management, etc This functional distribution includes both the on-roll and off roles employment in airports. Across the airport there is contractual employment which is outlined below:

Table 9: %-age of contractual employment across functions

Function %-age contractual Remarks The areas include:  Housekeeping Terminal management About 80%  Trolley management  Baggage management The areas include: Engineering and maintenance About 60 - 70%  Civil maintenance  Electrical maintenance The areas include:  Loaders Cargo About 60 - 70%  Packers  Drivers The areas include:  Ground keepers Airside management About 50 - 60%  Security  Driver The core functions will be analyzed in further detail across the airside, terminal and landside areas.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 60

Final Report 3.2.1. Airside analysis

The airside of the airport essentially begins when the passenger leaves the terminal area and begins the boarding procedure / begins the de-boarding process. The key functions in airside analysis are airside management as well as cargo. The latter has been discussed as a separate section in this report. 3.2.1.1. Airside management function

The key function in the airside of the airport is the airside management function. Any airside has the following key areas:

 The movement area where the take off, landing and taxiing of aircraft occur. It consists of the maneuvering area and the apron. The maneuvering area is typically bifurcated further into: o Runway o Taxi way  Apron where intended to accommodate aircraft for the purpose of loading or unloading passengers, mail or cargo, fuelling, parking or maintenance The airside thus has a vast infrastructure which has to be managed and maintained. The typical infrastructure associated with the airside is: - Airfield pavements including runway reconstruction - Taxiways, associated connectors and rapid exit ways - Aprons for all types of aircrafts - Associated support buildings, systems and utilities The airside is thus a complex system which in addition to the above infrastructure has to manage and maintain the airside lighting, the approach areas, visual docking guidance systems, the runway and taxiway lights, etc Thus, the key objectives of the airside management function are highlighted below: Objective

The airside operations function has the following key objectives:  Managing the runway area  Marshalling and driving  Apron Safety Management  Airside rescue and fire fighting  Airside Security  Wildlife management  Visual aids provision (that will aid pilot in navigation)  Coordination with regulatory authorities  Documentation In line with the above outlined objectives, this function has the following key sub-functions:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 61

Final Report

Figure 15: Airside operations – sub functional structure

Airside Management

Airport Operation Airside Rescue & Airside Operations Services Fire Fighting

Source: Airports interaction, AOCC refers to airport operation control center The sub-functions are explained in further detail for the analysis.

Table 10: Airside management – sub functions brief

Sub function Brief Key job roles associated The airside management function primarily ensures that the airside is safe for aircraft and passenger movement and maintains the area in line with expected standards. The airside operation sub function is responsible for the following set of activities:  Ground maintenance - Ground maintenance in airports manages the Ground maintenance: airside grounds and ensures that the → Duty foreman tarmac, taxiway, apron and → Maintenance foreman surrounding areas are maintained in → Outsourced entity line with the standards prescribed. The outsourced entities form the bulk Driving: of the employment here where the → Driver Airside operations personnel are required to keep the airside as per the standards. Safety: → Safety officer  Driving - this activity manages the overall motor vehicle movement in Wildlife: the airside. → Wildlife management / control officer  Safety - this activity ensures the airside safety. This is governed by ICAO standards and safety officers ensure that the same.

 Wildlife - this is a key function which keeps the airside free of birds, animals and other forms of wildlife. This is

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 62

Final Report

Sub function Brief Key job roles associated essentially a preventive function which also needs to play the role of managing crisis when wildlife encroach the air side The airside operation service sub function is AOCC: responsible for the following set of activities: → Shift in charge  AOCC – the function that enables → apron controller collaborative decision making among → infrastructure allocator all stakeholders at the airport, thereby → facilitator optimizing all the associated airport → admin and MIS infrastructure → Back office support

Airport operation  Airside works – the function which Airside works: service monitors the associated airside → Duty officer working. This is typically a small but significant function Height monitoring → height monitoring officer  Height monitoring – this function → surveyor monitors the aircraft height in line with the requisite regulations. This is In addition, there is role of an typically a small but significant On-Time Performance function analyst This critical sub function ensures overall safety and emergency response in the event of any incidents. This comprises of the following set of activities:  Emergency planning – the preventive function that plans and takes proactive view for all the emergencies Emergency planning in the airside → emergency planner

 Fire and safety – the all important Fire and safety function that manages emergencies in → duty manager the airside. These may include fires, Airside rescue and → CFT in charge aircraft veering off the runway, etc firefighting → command post officers

→ FWT  Stores and equipment maintenance – → CFT crew the function that manages the

associated gear for the fire and safety Fire preservation function → Fire preservation officer

 Fire preservation – yet another important function that plays the preventive role  Admin and MIS – the function that manages all the documentation management and admin related tasks

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 63

Final Report

Key skill requirements

For the job roles detailed above the expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned.

Airside management Function Key expected competency Key skill requirements The rescue and firefighting related roles The skill gaps in this function must have the ability to perform the stem from the inadequate following core functions: exposure of the associated  Able to act within the stipulated personnel to the emergency time in the event of emergency practices. Rescue and firefighting  Able to use efficiently the equipment The airports have a minimum  Be aware of the safety and lead time of about 12 months emergency procedures before they have adequately  First aid procedures qualified personnel here With the airports having vegetation and interaction with surrounding ecosystems, it becomes imperative for wildlife management. Some of the key competencies that the roles in this function should possess are: This is a function where there  Knowledge of various control is paucity of skilled HR and Wild life management methods to prevent wild life capacity building needs to be encroachment undertaken  Skills to act in the event of wildlife encroachment  Knowledge of the associated equipments and methods when wildlife encroaches This function typically requires human resource that is experienced and Airport operation thus there are not specific skill gaps. However, upskilling is required to service keep the personnel skill sets updated 3.2.2. Terminal analysis

The terminal is the heart of any airport infrastructure. The terminal usually begins at the entrance to the aerodrome and is the area till the passengers exit the same for the boarding process. The terminal is the element where maximum customers interface and requires skills that are technical as well as customer centric. 3.2.2.1. Terminal management function

The key function in the terminal of the airport is the terminal management function. This function also incorporates the city-side management. The terminal infrastructure is usually vast with magnitude of infrastructure proportional to the passenger and cargo movement. Some indicative elements of this infrastructure are:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 64

Final Report

 Systems to handle requisite number of bags per hour for the current phase with a provision of expansion to cater to the future demand.  Economy check-in counters, VIP CIP check-in counters and recheck-in counters  Conveyors for transporting bags  X ray machines and four ‘Level 3 CT scan’ machines  Steel structures to support the baggage system  Elevators, escalators and travelators The typical area of the terminal can range from 100 acres (smaller airports with lesser passenger handling capacity) to over 5,000 acres (like New Delhi airport, Mumbai airport, etc). Terminal area – snapshot – Chattrapathi Shivaji International Airport

 One-roof new passenger terminal of 4,39,204 sq. meter and ancillary facilities  Designed to handle 9600 bags per hour for the current phase with a provision of expansion up to 10,800 bags per hour to cater to the future demand.  63 contact and 10 remote stands  188 check-in counters  5 levels of security screening

Source: ECC Concorde, L&T Construction Thus, this terminal management function becomes nodal in terms of manning the entire infrastructure and ensuring there is smooth transition of passengers. Additionally the terminal is the area in the airport where associated stakeholders like retailers, airlines operate in abundance and the function also needs to manage the expectations of the same. Thus, the key objectives of the terminal management function are highlighted below: Objective

The terminal management function has the following key objectives22:

 Preserve physical condition of Buildings and Facilities  Prolong Economic life of Airport Buildings / Terminals  Ensure high standards of Maintenance, Cleanliness – Housekeeping , Aesthetics and Comforts through  Daily Walk-through Inspection  Enforcement Checks  Actively Seek Co-operation of airport organizations(Internal Dept.& other agencies of airport)  Initiate improvement and upgrading works so as to  meet higher expectations  Explore new needs  Explore the Solutions of Capacity problem.  Provide a pleasant ambience and Comfortable stay for Passengers  Provide inputs for new developments

22 Source: AAI terminal management manual – fourth edition

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 65

Final Report

The terminal management function essentially manages the passenger flow in the terminal. The broad set of passenger activities this function manages are linked to the typical departure and arrival activities. The same are indicated below:

Figure 16: Typical passenger movement in terminal

Departure cycle Arrival cycle

Arrive at Arrive at airside Check-in Baggage claim landside and de-plane

Concessionaires Concessionaires Security check Landside interface interface

Concessionaires Boarding interface process

Red colour indicates the airside area operation In line with the above outlined objectives and activities, this function has the following key sub- functions:

Figure 17: Terminal management – sub functional structure

Terminal management

Baggage and Cityside Customer service Housekeeping trolley management management management

Source: Airports interaction

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 66

Final Report

Function description

The terminal management function primarily ensures that the terminal as well as the leading city side is in line with international standards to provide seamless service for the customers. The key sub functions perform the respective modules so that the overall objectives are met.

Table 11: Terminal management – sub functions brief

Sub function Brief Key job roles associated The cityside operation sub-function is responsible for the following set of activities:  Garden and landscaping – this is Garden and landscaping: typically an outsourced function that → Manager manages the flora and garden in the → Asst manager approach to the terminal areas. the → Outsourced entity airport resources play predominantly (gardeners and landscapers) Cityside a oversight and coordination role with management the outsourced entities Cityside operations:

→ Manager  Cityside operations – city side → Asst manager operation refers to managing the area → External entity (taxi, that leads upto the terminal. This porters, etc) function liaisons with various external entities like the taxi operators, bus operators, etc The housekeeping function maintains the → Manager cleanliness of the aerodrome facility. This is → Shift in charge typically done by coordinating with → Shift officers Housekeeping outsourced entities. The house keeping → Outsourced entity (floor function of the airport, though not involved cleaners, dumpster cleaners, directly need to build skills on the basics of toilet cleaners, etc) airports. Baggage and trolley management manage the → Manager Baggage and customer baggage and the trolleys used for → Shift in charge trolley moving the baggage and trolleys from the → Duty officers management approach to the terminal to the point of → Trolley workers security checks. (Outsourced entity) → Manager → Customer Experience Front End Customer service This function ensures overall customer delight → Customer Experience Back management and also guides the VIP passengers End → Customer Service Airport → Contact Centre executives Key skill requirements

For the job roles detailed above the expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 67

Final Report

Table 12: Key Skill requirements – Terminal Management Terminal management Function Key expected competency Key skill requirements Other remarks In addition to building skills for the core airport The terminal management roles staff, the need hospitality oriented outsourced entities who are competencies: The skill requirements about 80% of the in this function stem  Basic airport knowledge resources require from the inadequate  Security aspects skill building exposure of the All  Customer interaction and efforts. Some associated personnel centricity specific where to airport operations  Grooming they need skill as well as customer  Soft skills building related orientation  Interpersonal skills specifically to  IT skills customer centricity as well as basics of airport operations and security. 3.2.2.2. Cargo terminal management

Cargo terminal management function is gaining increased importance due to diversifying types of cargo that airports are starting to handle. The cargo terminal has the following key infrastructure which needs skilled people to manage the same: - X ray systems - Hand scanners - Conveyors - Screeners - Palletizers, etc The cargo management function thus has the twin objectives to managing the infrastructure and ensuring safe movement of cargo. Objective

The cargo function has the following key objectives23:

 Implementation of IATA rules, ICAO recommendations, Implementation of BCAS, CBEC objectives and regulations, pertaining to cargo handling  Liaison at apex level with the regulatory Ministries, and other bodies, as well as user agencies such as Central Board of Excise and Customs, DGCA, Ministry of Commerce  Tapping hitherto untapped areas of operation for harnessing additional revenue from cargo handling, including Express and Courier Operations

23 Source: AAI

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 68

Final Report

 Manage all the ground space and facilities provided for cargo handlings including aprons, cargo buildings and warehouses, vehicle parks and roads associated  Ensure the cargo is safe and air worthy  Handle the cargo appropriately in line with standards  Document the cargo related data Function description

The cargo function primarily coordinates with external freight and cargo entities that utilize the airport facilities and ensures that there is safe passage of cargo to the aircraft belly. Similar to the passenger flow, the air freight cargo follows a typical process flow. The key functions of the cargo function revolve around these processes.

Figure 18: Typical cargo movement

Air freight departure cycle Air freight arrival cycle

Receive the Arrive at cargo cargo package terminal Unload Assemble (s)

Customs and Assemble and other required Security check Sorting sort regulatory checks

Dispatch to Dispatch to Aircraft loading Load aircraft landside

In line with the above outlined objectives and activities, this function has the following key sub- functions:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 69

Final Report

Figure 19: Cargo – sub functional structure

Cargo

Outbound and Cargo acceptance inbound Cargo warehouse Documentation and handling operations management and compliance

Source: Airports interaction

The key sub functions perform the respective modules so that the overall objectives are met.

Table 13: Cargo – sub functions brief

Sub function Brief Key job roles associated This is the function that accepts the cargo → Executive from the freight forwarders and other entities → Non executive Cargo acceptance and checks for the air worthiness of the cargo. → Outsourced entity and handling This includes checking the cargo and (security, loaders and coordinating with packers and loaders. packers) Warehouse operations like configuration of Cargo warehouse → Executive physical storage spaces and rules for storage, management → Non executive storage of cargo, and retrieval of stored cargo Outbound Operations: supports the activities involved in the outbound movement of cargo - activities from the check in and acceptance of → Executive shipment to closure of the flight after Outbound and → Non executive departure. inbound → Outsourced entity operations (security, loaders and Inbound Operations: supports operational packers) requirements of inbound cargo from the time it is unloaded from the aircraft until the cargo is delivered to the consignee Service Level Agreement Management, Documentation customs reporting, accounting, → Executive and compliance documentation of cargo movement, tracing, → Non executive etc Key skill requirements

For the job roles detailed above the expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 70

Final Report

Table 14: Key Skill requirements- Cargo Cargo Function Key expected competency Key skill requirements Other remarks In addition to building skills for The cargo roles need the the core airport following key competencies: staff, the outsourced  Knowledge on handling entities who are various types of cargo about 50 - 60% of The skill requirements  Knowledge of DG the resources in this function stem  Packing techniques of require skill from the inadequate cargo building efforts. All knowledge of types of  Load and trim Some specific cargo and the  Air worthiness where they need Dangerous goods  Load and trim skill building related regulations  Basic airport knowledge related  Soft skills specifically to as  Interpersonal skills basics of airport  IT skills operations , security and dangerous goods management 3.2.2.3. Engineering and Maintenance

Engineering and maintenance function manages all the requisite maintenance related requirements across the airport area. This function acts as the input to several functions performing seamlessly. The engineering and maintenance function covers vast infrastructure:  Elevators with various landings and handling capacity  Escalator with various handling capacity, rated speed and rise range  Travelators with various handling capacity  Passenger Boarding Bridges (PBB)  Steel structures to support the baggage system  Other equipment like motors and special equipment provided  Power sources from substations (at terminal)  Power back-up  Lighting systems which include light control monitoring systems  HVAC equipment like Chillers, Cooling tower, Pumps, AHUs, FANs, FCUs & CAHUs, CRAC units  Check in counters  Airside lighting systems  Pavement management, etc

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 71

Final Report

Engineering and maintenance – snapshot – Chattrapathi Shivaji International Airport

 87 elevators  55 escalators  41 travelators  52 passenger boarding bridges  India’s first world-class energy efficient automated tilt tray sorters (lS-4000E) using Linear Synchronous Motor (LSM) technology which consumes only 25% of power  Eight ‘Level 1 EDtS’ X ray machines and four ‘Level 3 CT scan’ machines  Fully decentralized electrical controls through ASI bus modules aiding ease of installation and reduced cable requirement  1000 t of steel structures to support the baggage system  Over 1400 motors and special equipment provided with variable frequency drives Source: ECC Concorde, L&T Construction Thus, the engineering and maintenance function in airports is complex with high level of technical skills that are required. Objective

This function has the following key objectives in the aerodrome:  The Construction, Modification & Maintenance of Passenger Terminals, Cargo Terminals  Development & Maintenance of Apron Infrastructure including Runways, Taxiways, Parking Bays etc.  Provision, Operation & Maintenance of Airfield Lighting  Maintenance and provision of air conditioning  Maintenance and provision of escalator, elevator, travelator, etc  Pavement management  Documentation and planning In line with the above outlined objectives, this function has the following key sub-functions:

Figure 20: Engineering and maintenance – sub functional structure

Private AAI airports

Engineering Engineering and and maintenance maintenance

Terminal and Airside Documentation Civil Electrical Electronics land side

Source: Airports interaction

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 72

Final Report

Function description

The engineering and maintenance function serves the nodal role of ensuring the overall airport is maintained in the acceptable standards to operate the flights. The key sub functions perform the respective modules so that the overall objectives are met.

Table 15: Engineering and maintenance – sub functions brief

Sub function Brief Key job roles associated Construction and maintenance of airport infrastructure which includes:  Terminal building – which includes all the conveyors, screeners, HVAC, etc → Manager  Cargo building – which includes → Executive Civil the screeners, conveyors, etc → Assistant executive  Control tower infrastructure → Outsourced entities  Runway maintenance  Apron maintenance  Taxi tract, etc All the above are done as per ICAO standards Provision and maintenance of all electrical installation which includes:  Air conditioning → Manager  Lights – in terminal and runway → Executive Electrical  Passenger boarding bridges → Assistant executive  Escalator, elevator and travelator → Outsourced entities  Ground lighting  Water pumps, etc The sub function is responsible for all the electronic equipments in terminal, cargo and airside (installment and maintenance). The equipments taken care are the following:  Security equipments: x-ray machine, metal detector, → Manager surveillance and explosive detector → Executive Electronics  Passenger facilitation → Assistant executive equipments: flight information, → Outsourced entities public announcement, telephones and wifi  Safety equipments: fire launch systems  Operations: wireless communication equipment and telephone exchange

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 73

Final Report

Sub function Brief Key job roles associated  Cargo: integrated cargo mgmt. systems, etc

In the case of the private airports, the above engineering functions are demarcated according to the airport zones i.e. terminal, airside and land side and these are supported by the respective documentation and planning sub function. Key skill requirements

The expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned. Table 16: Key Skill requirements across specific functions - Engineering and Maintenance

Engineering and maintenance Function Key expected competency Key skill requirements The key skill requirements in The pavement management related this role is that the recruited roles must have the ability to perform civil engineers / diploma the following core functions: holders are not able to adequately perform the  Provide adequate bearing function as the respective capacity study streams are not able to  Provide adequate riding incorporate the aviation angle. Pavement management qualities

 Provide appropriate surface Though the construction of friction characteristics pavement is a onetime  Ensure longevity function there needs to be  Ease of maintenance adequate and planned  Have and maintain right maintenance to ensure that pavement marking system is upto the defined standards The HVAC roles in the electrical sub function need the following key competencies: The skill requirements in the HVAC roles stem from the  Keeping an airport at the right personnel’s inability to comfort level of heating maintain the HVAC systems.  Maintaining the air quality HVAC  Maintaining the HVAC systems The current ITI / polytechnic  Ensuring proper preventive systems are not able to schedules adequately skill the human  Ability to trouble shoot when resources to execute the tasks required with optimum resource usage The AGL roles have the critical tasks of This critical function faces planning, placing, monitoring and paucity of skilled HR and the Airport ground lighting maintaining the airport ground lights airports are dependent on which are nodal to the air traffic flow. international entities for this function.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 74

Final Report

Engineering and maintenance Function Key expected competency Key skill requirements This function is guided again by the ICAO standards. Appropriate skilling avenues need to incubated for this function The PBB function requires the following key competencies:  Ability to operate the PBB  Capacity to maintain the PBB in line with standards This is another role where  Ability to understand hydraulic there is paucity of skilled HR. Passenger boarding or electromechanical elevation Though the operation of PBB is bridges system comprehended, the  Skill to maintain the glass or maintenance aspect needs steel tunnels and an increasing skilling or decreasing telescope extension  Ability to comprehend the apron-specific configuration The runway maintenance roles have the following key expected competencies:  Maintain runway safe for aircraft operation This is another role where  Maintain the surface integrity there is paucity of skilled HR.  Maintain the requisite friction Runway maintenance the maintenance of runway  Monitor the above factors needs capacity building constantly initiatives  Understand how the runway maintenance needs to be done  Understand the surface specific maintenance needs This is a niche but critical role which This is another role where Drawing and creates the requisite GIS drawings and there is paucity of skilled HR documentation assembles the appropriate and capacity building needs to documentation be undertaken 3.2.2.4. Safety and Security

Airport safety and security has evolved to be one of the most important functions in the airport ecosystem. With the growing threats and need for enhanced security, this role is both proactive in nature as well as responsive. The skills in this function need to be constantly upgraded so that there is safe and secure movement of passengers and cargo. Objective

The security function in airports is all-important. With the current global scenario, this function becomes critical to have appropriately skilled and vigilant personnel. The security function is guided

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 75

Final Report by multiple global, national and state-specific standards like the ICAO annexes, BCAS guidelines, state requirements, etc The security function has the following key objectives24:

 Coordinate, at the airport level, the implementation of the National Civil Aviation Security Programme  Collect and maintain statistics on airport vulnerable points.  Ensure that existing security measures meet the requirements of current and anticipated threat levels.  Conduct regular exercises, tests and inspections.  Report on weaknesses and implement corrective measures.  Report to management on weaknesses requiring outside assistance.  Ensure that all security personnel are qualified and trained.  Provide input into plans for new or expanded airport facilities. Apart from the above the security functions also does the following:

 Ensure requisite physical barriers/structures  Ensure installations of requisite equipments  Ensure proper coordination  Interface with all departments regarding policy matters related to airport security  Interface with Bureau of Civil Aviation Security and monitoring of implementation of Bureau of Civil Aviation Security guidelines at all airports  Interface with Central Industrial Security Force: induction of Central Industrial Security and related issues. The security function has its interface across all the areas in an airport.

24 Source: ICAO

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 76

Final Report

Figure 21: Security function interface

Airside

With Security associated Terminal function stakeholders

Landside

Function description

The security is the critical function that ensures that the airport is secure for passenger and aircraft movement. Security deployed at the airport is completely in line with GoI Aviation norms (Annex 17, ICAO Security manual). The norms define security personnel required by the category of airport which in turn is defined by the number of passengers transiting the airport in a year. Security deployed is CISF personnel (strength in line with ICAO norms) and contractual security which may be from State Police or DGR (Ex Servicemen). The security function has preventive and routine checks/activities that maintain the overall security of the airport areas. Key roles here include the security executive and security asst. Executive. Key skill requirements

For the job roles detailed above the expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned. Table 17- Key Skill requirements- Security

Security Function Key expected competency Key skill requirements The security personnel are  Be familiar with the various typically holders of the levels of security standards requisite BCAS certifications. Security  Ability to be vigilant and The challenge in this function proactive is not a traditional skill gap.  Be aware of the various security Rather it is the need to have a threats and the evolutions of pipeline of skilled security

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 77

Final Report

Security Function Key expected competency Key skill requirements the same personnel who can manage  Ability to handle the various the various requirements. security equipments and the scanners  Knowledge of the procedures in the case of any event occurring  Ability to do the requisite documentations

Other generic skill requirements

The above segment outlined the key roles across functions where there are skill building requirements. There are also generic skill requirements across functions and levels which are outlined below:

 Understanding basics of civil aviation sector and airports  IT knowledge  Digitization skills  Soft skills  Ability to communicate effectively  Interpersonal skills  Basics of safety and security in airports  Basics of civil aviation sector 3.2.2.5. Air Navigation Services

The air navigation services are the services that manage flight traffic on behalf of a company, region or country. Air navigation service providers are government departments, state-owned companies, or privatized organizations. In India these services are provided by the AAI. The broad objectives of the ANS as a whole are25:

 To prevent collisions between aircraft in flight and between aircraft on the ground and obstacles, including vehicles (control service)  To provide aircraft with advice and information to ensure the safe and efficient conduct of flights (information service)  To notify and assist agencies involved in search and rescue operations (alert service). The typical structure of the ANS in India is divided into air traffic management and communication, surveillance and navigation (CNS):

25 Source: IATA and discussions with airports

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 78

Final Report

Figure 22: ANS functional structure

ANS

Communication Air Traffic , navigation and management surveillance

Source: AAI 3.2.2.6. Air Traffic management

Indian air space is divided into four Flight Information Regions (FIRs). Each FIR includes terrestrial air space above the nation and the oceanic air space. Through these spaces, services are provided with efficient telecommunication links - both voice and data, for Air Traffic Control purposes. With the facilities provided like radar, communication tools, etc Air Traffic controllers work for management of air traffic in the region. Air Traffic Services include Control Tower, Approach Control and Area Control Services. Whereas Control Tower and Approach Control Services are provided at all the terminal airports on designated frequencies, Area Control Services are provided at specific airports by AAI. These Area Control Centres are equipped with Mono pulse Secondary Surveillance Radar (MSSR). Also, advisory Service is provided to all aircrafts flying beyond Radar coverage. Air Traffic Services are provided by skilled employees who are rigorously trained in AAI's training college viz. Civil Aviation Training College, Allahabad, and U.P. using Radar and Tower simulators. Search and Rescue is also a function that is done as part of ATM. Coordination Centres are also established at the four FIRs. Close liaison is maintained with agencies like Indian Coast Guard, Navy, Air force and District Administration etc., Distress messages are received through SARSAT & COSPOS which are linked by Indian Space Research Organization's (ISRO) System with the Aeronautical Fixed Telecommunication Network. Search & Rescue is the responsibility of the State (country), whilst, AAI does initiate the coordination with the agencies involved26. The outlined schema outlines the key functions:

26 Source: AAI

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 79

Final Report

Figure 23: ATM – sub functional structure

ATM

Air traffic control Flight information Alerting service service service

Source: Airports interaction

The key sub functions perform the respective modules so that the overall objectives are met.

Table 18: ATM – sub functions brief

Sub function Brief Key job roles associated To accomplish following objectives:

a) prevent collisions between aircraft; b) prevent collisions between aircraft on the maneuvering area and obstructions on that area; c) expedite and maintain an orderly flow of air traffic

Air traffic control services have been divided in three parts as follows:  Area control service - service → ATM in charge established to provide air traffic → Air traffic controller → Watch supervisory officer Air traffic control control service to aircraft operating on (WSO) service flight plans within controlled airspace, principally during the en route phase → Duty officer of flight → ATS reporting officer (ARO)

 Approach control service - The Approach Control Service in an air traffic control service in the Terminal Control Area and the associated Zone which is provided for controlled flights of aircraft arriving at terminal

 Aerodrome control service - The Aerodrome Control Service is an air traffic control service provided for the whole aerodrome traffic on the

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 80

Final Report

Sub function Brief Key job roles associated maneuvering area of an aerodrome and for all aircraft flying in the vicinity of an aerodrome. Provide advice and information useful for the safe and efficient conduct of flights.

It is a service provided for the purpose of → Radar controller (RSR) giving advice and information for the safe and Flight information → Planning controller (PLC) efficient performance of flights. Along with the service → Sector flight data assistant air traffic control service and emergency (SFDA) service, flight information service is provided by air traffic controllers for controlled flights and for all flights in the vicinity of controlled airports. Notify appropriate organizations regarding aircraft in need of search and rescue aid and assist such organizations as required.

Alerting service shall be provided:  for all aircraft provided with air traffic Alerting service control service; → Officer  in so far as practicable, to all other aircraft having filed a flight plan or otherwise known to ATS; and  to any aircraft known or believed to be the subject of unlawful interference.

Source: AAI, Secondary sources Key skill requirements

For the job roles detailed above the expected competency is standardized by manuals. The officers who work in this domain are highly skilled and are put through rigorous training. AAI has a very detailed training calendar for a financial year that is floated to airports well in advance for officers. This training is refresher in nature as well as for fresh recruits. The three phases of the training are: 1. Aerodrome and approach control 2. Area control and 3. Radar (Surveillance control) Each successive phase is more challenging. ATC is ICAO compliant and is also ISO 27001 certified (which is an information security standard pertinent to ATC and CNS). However, ICAO compliance is the more coveted norm for this department. So, quality wise in terms of technical competence there are no issue. The above being said, there are however some areas of improvement:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 81

Final Report

 Basic proficiency in English needs to be ensured at entry level so that if there are any interactions apart from physiognomies with pilots there are no gaps or miscommunication.  Aptitude and Basic English proficiency should be ensured at entry level as both these are very pertinent to the job at hand.  Also, using more simulators in ATC training would boost preparedness for employees in a big way as this is again an intense job with grave ramifications for mistakes.

3.2.2.7. Communication, Navigation and Surveillance (CNS)

CNS is the lifeline that provides the equipment and technology to enable ATS. CNS has the following key sub-functions: (a) Communication: Communication is the exchange of voice and data information between the pilot and air traffic controllers or flight information centres. (b) Navigation: Navigation function of CNS/ATM Systems Is meant to provide Accurate, Reliable and Seamless Position Determination Capability to aircrafts. (c) Surveillance: The surveillance systems can be divided into two main types: Dependent surveillance and Independent surveillance. In dependent surveillance systems, aircraft position is determined on board and then transmitted to ATC. The current voice position reporting is a dependent surveillance system in which the position of the aircraft is determined from on-board navigation equipment and then conveyed by the pilot to ATC. Independent surveillance is a system which measures aircraft position from the ground. Current surveillance is either based on voice position reporting or based on radar (primary surveillance radar (PSR) or secondary surveillance radar (SSR) which measures range and azimuth of aircraft from the ground station.

Figure 24: CNS – sub functional structure

CNS

Communication Navigation Surveillance

Source: Airports interaction The key sub functions perform the respective modules so that the overall objectives are met.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 82

Final Report

Table 19: CNS – sub functions brief27

Sub function Brief Key job roles associated Point-to-point communication between airports is effected through Aeronautical Fixed Telecommunication Network (AFTN), which is a Close User Group Data Network, using Automatic Message Switching System. This is a fully computerized switch, which is capable of handling formatted messages on Departures, Flight Plans of various flights from different airports without delay and expeditiously. Since the AFTN is a world-wide network, such messages can be exchanged with airports located throughout the globe. Other activities undertaken are:  Aeronautical Mobile Services (AMS) - AMS are provided to aircraft in flight by ground stations in designated VHF Communication & HF frequencies. → Officer in charge – CNS

→ Manager  Automatic Self Briefing System → Asst manager (ASBS), a single point computerized → Shift supervisory officer briefing system, is established at → Shift duty officer International NOTAM Office (NOF). → Duty communication Inter alia, involving collation of officer NOTAM from other pre-defined → AMSS officer National/International NOF and → IT officer provides pre-flight information to the

Pilots in a user friendly manner, as recommended by the International Civil Aviation Organization. Using this, the Pilots can get quick and comprehensive pre-flight information by interaction with the computer system

Navigation services for over flying and terminal air-traffic are provided as per the ICAO norms at different airports and stations. The services provide the direction and range Navigation information to the aircrafts through installation of various Navigational Aids such as Non-Directional radio Beacons (NDB), Doppler Very high frequency Omni Range (DVOR) and Distance Measuring Equipments (DME). Landing aids like Instrumental Landing

27 Source: AAI

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 83

Final Report

Sub function Brief Key job roles associated Systems (ILS) a system consists Localizer, Glide Path, Markers, Locator Beacons, DME etc., are installed at number of airports. There are 16 NDB, 17 VOR/DVOR, 18 High power DMEs and 10 ILS facilities installed at various airports in Southern region. The systems are installed by the dedicated specialized AAI installation unit and maintained by AAI professionals. Periodic Air Calibration is done by the Flight Inspection Unit to confirm the performance of these sophisticated systems as per the ICAO standards.

Radar surveillance is provided by placing radars MSSR (Monopulse Secondary Surveillance Radar) and ASR (Airport Surveillance Radar) at the designated locations. These facilities provide radar control services for Air Traffic Controllers. Radar services provide enhanced air safety, airspace Surveillance utilization, and reduce delay. Also provide monitoring traffic flow, radar vectoring to departure/arrival aircraft, separation etc. Besides, ASMGCS (Advanced Surface Movement Guidance and Control System) for surface surveillance has been installed. ADS/CPDLC installed is used for Oceanic Coverage.

Source: AAI Key skill requirements

Similar to ATS, for the job roles detailed above the expected competency is standardized by manuals. The officers who work in this domain are highly skilled and are put through rigorous training. AAI has a very detailed training calendar for a financial year that is circulated to airports well in advance for officers. This training is refresher in nature as well as for fresh recruits. The above being said, there are however some areas of improvement:

 Enhanced exposure to practical aspects of training  Language and soft skills  Continuous exposure to technology changes in CNS

3.2.2.8. Career progression

Career progression analysis is critical from the twin perspectives of understanding the set of competencies that a job role needs to accrue to move the corporate ladder and what should be the training that will be offered for the movement. The grade-wise criteria for career growth have been

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 84

Final Report spelt out by the AAI. In the case of private players they have their own competency map for the same.

3.2.2.9. Summary – airport segment critical job roles

This segment outlines the critical job roles, function-wise for the airport segment. Criticality of the job role for airport segment is based on:

 Identified core functions  The roles where there is skill dearth and requires immediate capacity building initiatives

Table 20: Critical job roles – airport

Function Critical job roles Criticality (High, Medium and Low) - Duty foreman Low Ground maintenance - Maintenance foreman Medium - Outsourced entity High Driving - Driver Low Safety - Safety officer High - Wildlife management / Wildlife management High control officer - Shift in charge Low - apron controller Medium Airport operation - infrastructure allocator Low control - facilitator Low - admin and MIS Low - Back office support Low - Height monitoring officer Low Height monitoring - Surveyor Low Emergency planning - Emergency planner Medium - duty manager Low Fire and safety - command post officers High - Fire safety crew High Fire preservation - Fire preservation officer High - Manager Low - Asst manager Low Garden and landscaping - Outsourced entity (gardeners and High landscapers) - Manager Low - Asst manager Low City side operation - External entity (taxi, Low porters, etc) - Manager Low Housekeeping - Shift in charge Medium - Outsourced entities High - Shift in charge Medium Baggage and trolley - Duty officers High - Trolley workers High

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 85

Final Report

Function Critical job roles Criticality (High, Medium and Low) (Outsourced entity) - Executive Medium - Loaders High Cargo - Packers High - Documentation exec Medium - In charge High Security - Executives High - ATM in charge Medium - Air traffic controller High - Watch supervisory officer High ATM (WSO) - Duty officer High - ATS reporting officer High (ARO) - Radar controller (RSR) High - Planning controller (PLC) High - Sector flight data assistant High (SFDA) - Officer in charge – CNS Medium CNS - Shift supervisory officer Medium - Shift duty officer High - Duty communication High officer - AMSS officer Medium - IT officer Medium

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 86

Final Report 4. Segment- Airlines This chapter shall focus on the macro environment and identify key factors that have led to the growth/changes to Airline segment. Any change in the macro environment scenario in terms of investment flow, change in technology, etc is likely to impact the human resource requirement and the quality of human resource requirement of the sector and study segments. Airline segment was analysed from a global and Indian perspective. Building on the segment & sub-segment and functional analysis of the airlines, this chapter also maps the employment structure analysis which outlines the key skill requirements across critical job roles. Functional analysis is the main tool for mapping the key roles and responsibilities of the function; after mapping the overall organisation structure. Functions are thus discrete-ised in the organization structure and the key roles that are required to perform the function are delineated and identified. Across these roles the key skill building requirements are identified. Some of the key aspects that have been mapped as part of this analysis are: Table 21: Key Aspects Key terms used Brief description Function is an activity necessary for achieving the key purpose of the sector, occupation, or an area of work, which can be carried out by a Function person or a group of persons. Functions are identified through functional analysis Sub-functions are sub-activities essential to fulfil for achieving the Sub-function objectives of the function Job role defines a unique set of functions that together form a unique Job role employment opportunity in an organisation

Source: NSDC The above key concepts have been illustrated below:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 87

Final Report

The following structure has been adopted for this chapter, which are covered in the subsequent sections, segment-wise:

 Overall typical organization structure  Brief description/objective about the functions  Further detailing on key civil aviation specific function  Typical HR structure across the above function  Outline of critical job roles  The respective skill gaps  The typical salary and career progression 4.1. Segment & Sub-Sector Analysis

Civil aircrafts have been classified by ICAO and IATA based on parameters such as manufacturer, number of seats, wingspan, gear width, approach speeds, travel capacity etc. The airline services can be divided into Commercial Transport and General Aviation Aircrafts which can be further divided as depicted below. General aviation comprises of all aviation activity other than scheduled freight and passenger airline service and military flying. The global and Indian perspective of the airline industry is provided in the following sections.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 88

Final Report

Figure 25: Aircraft Industry

Aircraft Services

Commercial General Transport Aviation

Scheduled- Non- Piston Engine Passenger + Scheduled Business jets Helicopters Gliders Ballons aircrafts cargo aircrafts

4.1.1. Global Perspective

Global aviation industry is estimated to support USD 2.4 trillion in economic activity which is about 3.5% of global GDP. It is also estimated to provide 58 million jobs in aviation and related tourism sectors. Global airline revenues increased from USD 476 billion in 2009 to USD 710 billion in 2013 (CAGR of 10.5%) and contributed to the direct employment of 2.3 million. According to IATA, the global airline industry recorded a net profit of USD 10.6 billion in 2013. The airlines in the region of North America showed the maximum profit of USD 7 billion followed by Asia-Pacific (USD 2 billion). The largest airlines in the world are in the United States of America, carrying over 100 million passengers each year. 4.1.1.1. Commercial Airlines

The commercial airline services contribute to over 95% of the economic activity however they constitute less than 10% of the world airline fleet strength. About 1,397 commercial airlines and 20,910 commercial airplanes were in operation as of 2013 (with single aisle aircraft constituting 65%

Feet Strength-Region wise Feet Strength-aircraft type wise

6% 3% 4% Asia Pacific 12% 8% 6% 26% North America 6% 11% Large widebody Europe Medium widebody Middle East Small widebody 21% Latin America Single aisle CIS Regional jets 32% 65% Africa of the strength). North America has the

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 89

Final Report maximum share of fleet of 32% followed by Asia-Pacific region of 26%. The aircraft type and region wise spilt of fleet strength is given in the chart below:

Source: Boeing Market Outlook, 2013 Some of the performance indicators of the airline industry in 2014 as per ATAG are

 2.97 billion passengers carried by airlines (compared with 3.1 billion in 2013)—Asia-Pacific contributed to 32% of this traffic.  37.4 million commercial flights woldwide.  49, 871 routes served globally.  5.4 trillion kilometers flown by passengers.  Average aircraft occcupancy at 79% which is higher than other modes of transport. 4.1.1.2. General Aviation (GA)

General aviation plays a key role in the wider aviation industry with shipments of more than USD 19.45 billion in 2009.28

 In 2009, 320,000 GA aircrafts operate worldwide (80% aircraft and 20% helicopters) , with 228,000 (71%) aircrafts based in US; India contributed only 0.2% of the total GA fleet.  According to General Aviation Manufactures Association (GAMA), the industry employs more than 1.265 million in the US and contributes to more than USD 150 billion to the US economy.  The largest segment of the GA is the market for business aircrafts which constitutes 80% of the fleet globally  While the primary market for business jets has historically been the US, the market is now expanding internationally. The business aircraft share of the US market reduced from 80% in 1990s to 50% in 2009. As per CAPA, the long-term forecasts for GA are positive. Aircraft sales have historically seen a high correlation with sales in US. The US economy is expected to drive the supply-demand as it remains the largest single market. With 50% of the sales now outside the US, and the percentage increasing over the years, the economic impact of the general aviation industry should reach USD300 billion woldwide by 2018. 4.1.1.3. Growth Trends

The airline industry is likely to continue evolving with new business models capturing an increasing share of passenger demand. Network carriers are consolidating and investing in carriers based outside their home markets. The regional airline industry includes airlines affiliated with network carriers and independent carriers that feed their own networks. Low cost carriers (LCCs) are focusing on becoming ultra-low cost carriers (ULCC) with a no-frills business model that stimulates new demand. The growth of the airline industry has a strong correlation to the Global GDP and to changes in a population’s propensity to grow. According to IHS Global insight, worldwide GDP is projected to

28Business and General Aviation Report 2011. CAPA

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 90

Final Report grow at a compound annual growth rate (CAGR) of 3.3% over the next 20 years and India will have the strongest GDP CAGR at 6.5%. According to OECD, the size of the global middle class could increase from 1.8 billion people in 2010 to 4.9 billion by 2030, with up to 85% of this growth in Asia Pacific, Greater China and India, which together account for less than a quarter of the world’s middle class today. As per Boeing, while passenger traffic is likely to grow at 5% annually, cargo traffic (which also depends on global trade) could grow at 4.7% per annum. An analysis of world-wide fleet growth by various agencies/ companies indicates that fleet growth in 20 years is expected at 2-4% CAGR. At 34-37%, Asia Pacific is expected to purchase new or replace the largest share of fleet during this period. Replacement is expected to be 40% of total deliveries. Table 22: Existing Commercial Fleet Region Bombardier* Boeing Africa 700 1,080 CIS 830 1,330 Middle East 540 2,950 Latin America 1,100 2,950 Europe 1,840 7,450 North America 3,650 7,550 Asia Pacific 4,440 13,460 World 13,100 36,770

Sources: Bombardier. * figures are deliveries of seat configuration 20-149 The mature markets of North America, Europe, Oceania and Northeast Asia (Japan and South Korea) are highly evolved with carriers operating fleets of aircraft with varying capacities to match market demand. In emerging markets, demand for air travel is growing because of increasing GDP and an expanding middle class. Greater China and India are expected to experience the greatest percentage growth in air travel demand. The airline industries in the emerging countries are at different stages in their development and different seat capacities airlines and operating economics have to be incorporated to meet passenger demand. 4.1.2. Indian Perspective

The airline industry in India is on a growth trajectory with the continued positive impact on the economic development of the country. During 2014-15, India’s airlines generated revenue of approximately USD 11.1 billion, and provided direct employment to about 55,000 persons. 4.1.2.1. Commercial Airlines

The commercial airline sub-segment has seen significant improvements in infrastructure and services from FY 2013 to FY 201429.  India had 435 scheduled aircraft as of 2015, and the industry provided direct employment to about 55,000 persons.  According to DGCA’s statistics30, India’s passenger traffic has grown at a 9-year CAGR of about 11% up to March 2015. While domestic passenger traffic has grown at over 12%, international traffic has increased at about 9.5% annually.

29 Source: Handbook on Civil Aviation Statistics, DGCA, 2014-15

30 Source: Handbook on Civil Aviation Statistics, DGCA, 2014-15

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 91

Final Report

 The year 2014-15 saw the airline industry carrying 70 million domestic passengers (growth of 15.5% over 2013-14) and 46 million international passengers (growth of 5.9%).  Domestic Passenger Kilometre (RSK) was at 67.02 billion and Available Seat Kilometre (ASK) was at 84.81 billion both seeing an increase from the previous year.  The passenger load factor was at an average of 75% which saw a slight increase from 2013- 14.  Air cargo carried by scheduled airline operators witnessed positive growth of 16.5% in case of domestic fright and 8.6% for international cargo.  Aircraft movements in 2014-15 were at about 9 lakh—comprising domestic (6.11 lakh) and international (2.86 lakh). Indian aviation industry is dominated by the Low Cost Carriers (LCC). These players can be classified into two major categories.

Public  Go Air   Air India Air Costa  TruJet Private Players  Vistara  Jet Airways  Air Pegasus  IndiGo  Air Asia  Spice Jet Players in Indian Aviation Industry are competing to gain maximum market share. Domestic market is dominated by LCCs such as IndiGo and SpiceJet.

Figure 26: Market Share—Airlines

9% 17% 34% 1% 15% 23%

1%

Indigo Jet Airways Jet Lite SpiceJet Air Costa Air India Go Air

Source: DGCA; IMaCS Analysis. As of February 2015

IndiGo carried more than half of the incremental domestic passengers across the industry during FY2015. As a result its market share soared to 35.4% by the end of the financial year, widening the gap between itself and the second largest carrier, Jet Airways, which had a market share of 23.0%. Foreign carriers, which handle around 65% of international traffic to/from India, grew their passenger traffic by around 8.6% in 2014-15

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 92

Final Report 4.1.2.2. General Aviation31

As per the statistics provided by DGCA, India has a total GA fleet of 1,204. This comprises 194 non- scheduled fleet, 574 business jets and aircrafts, 281 helicopters, and 155 gliders and balloons. The following table gives the distribution of GA fleet in 2015. Non-Schedule flights account for 33% of the GA fleet followed by the training institutes. Table 23: Summary of GA Fleet Registers in DGCA

Hand Motor Ultra- Operator type Aircraft Helicopter Balloon Glider Experimental Glider Glider Light Non-Schedule 194 192 7 0 1 0 0 0 Government 125 37 0 5 41 0 0 1 Private 162 50 14 15 5 0 6 0 Training 281 2 1 15 2 6 1 Miscellaneous 6 0 3 28 4 TOTAL 768 281 21 24 62 2 40 6 Source: DGCA Figure 27: Operator-wise GA Fleet

(Total -1,204)

Source: DGCA 4.1.2.3. Main Players and Market Share in the industry

The Non-scheduled aircrafts (including aircrafts) saw an increase from FY 2005 to FY 2011 but later saw a reduction to 361 in FY 2014 and increase to 393 in FY 2015 which reflects the underdeveloped nature of the industry. The GA operator segment also saw similar trends with present number being 155; 81 non-scheduled operators (NSOP)—domestic, 37 non-scheduled international operators, and 37 non-scheduled helicopter operators. Top operators and their share in each of the above three segment is given in the Figure below:

31 India Business and General Aviation, 2011 - CAPA

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 93

Final Report

Figure 28: Top 15 NSOP—Domestic (Aircraft) Operation

(in % share)- 56%

Source: DGCA Of the 81 NSOP domestic (aircraft) operators, the top 15 accounted for more than half number of domestic flights operated in 2014-15. Figure 29: Top 15 NSOP—International (Aircraft) Operations

(in % share)-90%

Source: DGCA Of the 37 NSOP international (aircraft) operators, the top 15 accounted for more than 90% of the international flights operated in 2014-15. Of the 37 non- scheduled helicoptor operators, the top 3 operators (Pawan Hans—59%, Global Vectra—22.3% and Himalayan Heliservices—11.2%) accounted for 93% of the total number of flights in FY 2015 (1.6 lakh departures). 4.1.2.4. Trends

The overall airline segment has a buoyant outlook, propelled by the following factors:

 The low-cost carrier (LCC) business model has grown tremendously over the past two decades. Successful LCC pioneers include Southwest Airlines in the US and Ryanair in Europe. The LCC model focuses on business and operational practices that drive down airline costs and prices. Typical cost-saving practices of LCCs include operating at secondary airports, flying a single airplane type, increasing airplane utilisation, relying on direct sales, offering a single-class product, offering few or no free in-flight extras, avoiding frequent-flyer programs, and keeping labour costs low. Such a strategy can help LCCs reduce unit cost by

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 94

Final Report

20-40% compared with network/full-service carriers. Their lower cost structure allows LCCs to reduce fares, which significantly stimulates traffic. Thus, the LCC model has proved successful throughout the world and has driven the growth of air travel32.  The LCC business model is very popular in Southeast Asia where LCCs account for 53% of the annual seats. LCCs have also a strong penetration in South Asia (36%), Europe (35%), Latin America (33%) and North America (27%). On the other hand, they have a low share of 9% in Africa, and 2% in China mainly as a result of market regulation33.  Airline partnerships, either full alliances or other cooperative arrangements, have become powerful tools for expanding networks, enhancing revenue, and reducing costs. Code sharing is a common partnering tactic, and code-sharing routes have grown at nearly 8% per annum during the past decade. The three major alliances (Star Alliance, SkyTeam, and Oneworld) now provide more than 60% of global capacity34.  Enhanced focus on network and fleet planning.  Indian carriers continuing to pursue expansion on international routes in 2015: Jet Airways is likely to be the fastest growing Indian international carrier and could expand capacity by 10-12%. Most of the growth will come from connecting non-metro Indian cities with Abu Dhabi to support the integrated network with Etihad.  Rise of start-ups: Six start-up airline's projects have received No Objection Certificates (NOC) in August 2014 and all are planning to launch by 2016. There are at least a further four or five airlines at the business planning stage which are yet to apply for a license. If all of the recent and planned new entrants materialise, India's aviation sector is likely to have significant over-capacity in the next 12-18 months.  India's middle income population is expected to increase from 160 million in 2011 to 267 million by 2016. The growth of middle-income population is likely to increase passenger traffic growth.  Economic forecast for India’s GDP of 6.5% per annum is nearly twice the Global GDP growth forecast of 3.3% per annum (2015-16), which will increase the air travel demand.  Taking the above into cognisance, the Draft Civil Aviation Policy, 2015 has highlighted about the Helicopter and Scheduled carrier segment. Other provisions in other segments of aviation industry such as airport, cargo, safety, etc. will have an effect on the traffic which in turn will affect the airline industry. Draft Civil Aviation Policy – Helicopter and Scheduled Carriers Helicopters  Separate regulations for helicopters will be notified by DGCA by 1 April 2016, after due stakeholder consultation.  The government will facilitate the development of four heli-hubs initially, across the country to promote regional connectivity.  Scheduled helicopter operators will be allowed to trade their Direct Flight Control.  MoCA will coordinate with MoF, MHA, NHAI, Indian Railways, insurance companies, hospitals,

32 Source: Boeing 33 Source: Boeing, Current Market Outlook 2014–2033 34 Source: Boeing

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 95

Final Report

Draft Civil Aviation Policy – Helicopter and Scheduled Carriers Pawan Hans and helicopter operators to facilitate rapid medical evacuation.  Helicopters will be free to fly from point to point without prior ATC clearance in airspace below 5,000 feet and areas other than prohibited and restricted ones, after filing the flight plan with the nearest ATC office.  The government will promote the use of seaplanes for growth of tourism and regional connectivity, along India’s 7,500 km coastline. Scheduled Commuter Airlines  The government will promote the growth of SCA for efficient regional connectivity. The eligibility criteria for SCA in terms of paid-up capital will be kept at 2 crore to facilitate easy entry of new players.  SCA shall have aircraft with capacity of 100 seats or less. There will be no restrictions on number of aircraft for an SCA. SCA would need to operate a minimum number of movements per week to RCS destinations as prescribed. However, RDG will not be applicable to SCA.  SCA operating on RCS routes will be eligible for VGF.  SCA would be allowed to enter into code-shares with Indian and foreign airlines. They would be free to sell their DFC to other Indian carriers.  MoCA will endeavour to rationalise landing, parking, navigation and other airport charges at non- RCS airports for SCA aircraft with 100 seats or less. This will be for a period of 10 years for a particular route.  SCA will be allowed self-handling of their aircraft.  MoCA will coordinate with the airport operators and AAI to ensure adequate space allocation at Indian airports for SCA.  SCA’s operating to Srinagar and the States in North-East, may be considered for further subsidy from other Central Government schemes like tourism promotion etc or by State Governments in the form of seat guarantees etc.

Owing to the positive outlook on India’s GDP and increase in share of middle income population, the commercial sub-segment is expected to grow. In case of General aviation, the economic growth of the country and corporate profitability are the key drivers. As there is a positive outlook on both these factors, the General Aviation sub-segment is expected to grow. With passengers and aircraft fleet strength expected to increase two folds in the next 20 years, the employment demand could increase 5 folds. Thus, there is an immediate need to strengthen the human resource development infrastructure. 4.2. Employment Structure and Skill Requirement Analysis

Airline is the segment that essentially serves as the link in the air travel value chain and utilises the various infrastructure like airports, terminals, etc. With the shrinking of the world on one hand and the ever present security threats on the other hand, airlines have the critical responsibility of safe flying in optimal time. 4.2.1. Context

Airlines segment has multiple interface points across the civil aviation landscape which spans the regulators, airports, MRO organizations, training organizations, etc. Given this complex operation- space for airlines, it becomes imperative to de-cluster the entities and focus on the core aviation specific functions which have a ramification on the skills building required.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 96

Final Report

The schema below indicates the key entities in the airline operating space. Essentially the airline needs to focus on building the internal policies and organizational processes to ensure that there is seamless operation even with multiple interfaces with all the entities.

Figure 30: Airline analysis contour

Competition Training org Fuel

Employees ^ Unions + Regulator regulations

Airline Customer Travel agent Airports

MRO firms Airline Ground manufacturer Insurance handling

The airline’s core interface entities are the customers, employees, regulator, airports, ground handling entities and MRO firms. The external universe of fuel entities, manufacturer, agents, training providers, etc also play vital role in the overall operation of airlines. Before looking at the department-wise analysis, the airline organization structure has been outlined. 4.2.2. Airline – Functional Structure

The airline analysis begins with charting the typical functional structure and dis-aggregating it into core and support functions. This will be followed by the in-detail analysis of the core functions. The core functions are airport operations, flight operations, in-flight services, security, ground support, cargo and engineering and maintenance. The latter three functions are typically part of airline operations and will be mapped in detail in the airline and MRO segments. The remaining functions will be analyzed in detail.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 97

Final Report

Figure 31: Airline – functional structure

Airline

Core functions Support functions

HR and admin Airport operations Finance

Cargo * Customer satisfaction Flight operations and IT safety Legal Engineering and maintenance * Marketing and sales In-flight operations Revenue management Security Catering

Ground support * Medical

Corp affairs

Purchase

Source: Interaction with airlines. Ground support, engineering and maintenance and cargo will be mapped in ground handling, MRO and cargo segments respectively. Across the above functional structure the human resources are organised as depicted below. The core functions have about 60% of the total human resources. Cabin crew and pilots are about 27% which is followed by the maintenance function at about 20%.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 98

Final Report

Figure 32: Human resource – functional breakup

Pilot and co- pilots Other flight crew 9% 1%

Cabin crew 18% Other personnel 40%

Engineering 20% Ticketing and sales 12% Source: DGCA 4.2.2.1. Airport operations

The airport operation is the nodal function for airlines that manages the passenger flow process in the airports. This function ensures that the passenger flow is seamless as well as safe. The key components of this process are:

Figure 33: Passenger movement process

Passenger enters airport terminal

Scan the Collect Proceed to luggage boarding pass security check

Approach the Tag the hand airline counter luggage

Go through the Check in check-in luggage process

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 99

Final Report

Thus, the airport operation function manages and facilitates this passenger movement in the terminal. Objective

The airport operations (also called services) function has the following objectives of:

 Managing the passengers in the airport premises when flying with the airline  Ensuring the baggage is screened and sorted  Ensuring there is smooth check-in process  Handling the passenger boarding / de-boarding  Managing the customer expectations – both requests and complaints  Manning the terminal and airside areas in view of security and safety  Managing the display and other details that guide passengers  Having a customer centric approach to passenger management Function description

Airport operation function has the following key sub-function – all of which relate to managing the seamless movement of customer and baggage with security and safety as the priority.

Figure 34: Airport Services / Passenger Management – key functions

Airport Services/Passenger Management

Boarding / Baggage Floor Ticketing Check-in deboarding management management

Source: Airlines interaction The key sub functions perform the respective modules so that the overall objectives are met.

Table 24: Airport operations (services) – sub functions brief

Sub function Brief Key job roles associated This function does the ticketing for the pax after → Ticketing agent Ticketing checking the appropriate documents → Supervisor

The check-in function manages the check-in process of the passenger. The passengers are → Check-in agent / briefed about their flight departure and gate personnel Check-in details after screening the id proof. The → Supervisors boarding pass is given to the passenger and they → Helpers (to hand out tags are also given the tags. and move luggage) In case the Pax has any query or concern the

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 100

Final Report

Sub function Brief Key job roles associated same are also addressed. The related baggage is checked for cabin dimensions and the check-in luggage is tagged appropriately

This function is responsible for the smooth boarding and de-boarding of pax away and to → Boarding personnel Boarding and de- the terminal. → Supervisors boarding → Helpers (to manage pax This function coordinates with the CISF as well with special requests) as ground handling entities for the smooth flow.

This function is responsible for screening the → Screeners Baggage luggage of the passenger and ensuring that the → Supervisors management same are loaded in the aircraft belly in-line with → Helpers the organizational time frames defined

This function is for manning the terminal (which is usually marked out into zones) and guiding the Floor pax. This function also plays the proactive role of → Floor walkers management watching out for any security or safety related lapses

Key skill requirements

For the job roles detailed above the expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned. Table 25: Key Skill Requirements - Airport Services/Passenger Management

Airport operations (services) Function Key expected competency Key skill requirements  Knowledge of the flight schedules and the pricing  Passports & VISA checks  Ability to manage the IT system  Soft skills Ticketing  Grooming Need to build the following:  Language skills 1. Soft skills  Standard Safety and security 2. Grooming norms knowledge 3. Language  Customer centricity 4. IT skills 5. Safety and security norms  Ability to manage the check-in knowledge process 6. Basics on airline operation  Luggage handling basics Check-in  Management of Computerized Reservation System  Airline fares and regulations  Passports & VISA checks

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 101

Final Report

Airport operations (services) Function Key expected competency Key skill requirements  Soft skills  Grooming  Language skills  Standard Safety and security norms knowledge  Customer centricity

 Flight schedules  Boarding and de-boarding procedures  Boarding pass checks  Appropriate announcements Boarding and de-  Soft skills boarding  Grooming  Language skills  Standard Safety and security norms knowledge  Customer centricity  Interpersonal skills

 Knowledge on baggage norms  Dangerous goods knowledge Though screeners have to  Ability to manage screeners finish the basic Aviation  Soft skills security courses as well as Baggage management  Grooming dangerous goods licenses, the  Language skills security and customer  Standard Safety and security orientation are capacity norms knowledge building requirements  Customer centricity

 Complete understanding of airport zones  Proactiveness and vigilance  Grooming Safety and security norms Floor management  Language skills knowledge  Standard Safety and security norms knowledge  Customer centricity  Interpersonal skills

4.2.2.2. Flight operations and safety

Flight operations and safety is the heart of airline operation. This function ensures that the flight is on air satisfying the safety and security requirements in addition maintaining the schedules. Any flight typically has the following activities as part of the operation and safety:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 102

Final Report

Figure 35: flight operation and safety activities

Input of maintenance

Input of fuel Clearance from details ANS

Input of all schedules Operations Input of all data including crew, preparation for flight log load, etc

Aircraft dispatch Security clearance

Cockpit

Aircraft movement In line with the above activities, this function has the following objectives. Objective

The flight operations and safety function has the following key objectives of:  Ensuring air worthiness of the flight  Completing the relevant safety checks  Ensuring the flight is air borne within the time frame, adhering to schedules  Coordinating with other relevant entities like ground handler, security, etc to ensure take-off  Coordinating with air navigation services with relevant details

Function description

Flight operation and safety has the following key sub functions that point towards the flight adhering to the airline schedules with safety and security

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 103

Final Report

Figure 36: flight operation and safety – key functions

Flight operation and safety

Aircraft operation Aircraft dispatch Security*

Source: Airlines interaction. * Security related roles will be mapped in security function The key sub functions perform the respective modules so that the overall objectives are met.

Table 26: Flight operations and safety – sub functions brief

Sub function Brief Key job roles associated Aircraft operation is the function that is directly → Captain Aircraft operation responsible for flying. → First officer This is the nodal function that is leads to the flight becoming airborne. All major decisions concerning the airline's operation are made, whether it is regional or global in scope in this function. → Dispatcher / senior flight Aircraft / flight Data from various stakeholders is collated and operation executive dispatch analyzed for any potential issues. Post the → Flight operation assistant scrutiny the aircraft is cleared for departure.

This function in some airlines is hived off and incubated as separate function typically called Aircraft Operations Control Key skill requirements

For the job roles detailed above the expected competencies have been outlined. The outlined skill requirements are the core requirements that have to be exhibited for which appropriate capacity building needs to be planned.

Table 27: Key Skill Requirements - Flight Operations and Safety

Flight operations and safety Function Key expected competency Key skill requirements  Facilitate all documentation for Dispatchers are license holders legal departure of flight who also have to keep  Assist the pilot-in-command in renewing the same. However, Aircraft / flight dispatch flight preparation and provide there are capacity building the relevant information requirements in the ecosystem required for creating skilled dispatchers

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 104

Final Report

Flight operations and safety Function Key expected competency Key skill requirements  Prepare the navigation log in India. The same shall be  Assist the pilot-in-command in explained in detail in the preparing the operational flight recommendations plans, sign when applicable and file the flight plan with the appropriate authority  Furnish the pilot-in-command while in flight, by appropriate means, with information which may be necessary for the safe conduct of the flight  In the event of an emergency, initiate such procedures as may be outlined in the operations manual  Manage any other ad-hoc requirements  Interface with all associated stakeholders This function has pilots who essentially fly the aircraft. There is no skill gap Aircraft operation here. Upskilling may be explored 4.2.2.3. In-flight operations

In flight operations is the function that manages the on-board passengers and other activities. This function thus often becomes the face of the airline industry. Objective

The in-flight function has the key objectives of managing the on-board aircraft safety and also managing the welfare and comfort of the passengers and the cockpit crew. Function description

The in flight operations function has the following key responsibilities35:

 Attending a pre-flight briefing, during which air cabin crew are assigned their working positions for the upcoming flight (crew are also informed of flight details, the schedule and if there are passengers with any special requirements, such as diabetic passengers, passengers in wheelchairs or the number of infants on board)

 Carrying out pre-flight duties, including checking the safety equipment, ensuring the aircraft is clean and tidy, ensuring that information in the seat pockets is up to date and that all meals and stock are on board

 Welcoming passengers on board and directing them to their seats

 Informing passengers of the aircraft safety procedures and ensuring that all hand luggage is

35 Source: Discussions and secondary sources

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 105

Final Report

securely stored away

 Checking all passenger seat belts and galleys are secure prior to rake-off

 Making announcements on behalf of the pilot and answering passenger questions during the flight

 Serving meals and refreshments to passengers

 Selling duty-free goods and advising passengers of any allowance restrictions in force at their destination

 Reassuring passengers and ensuring that they follow safety procedures correctly in emergency situations

 Giving first aid to passengers where necessary

 Ensuring passengers disembark safely at the end of a flight and checking that there is no luggage left in the overhead lockers

 Completing paperwork, including writing a flight report There are also some specific functions (which have been detailed below) for which the cabin crew has to be responsible for:  Aircraft Evacuation

 Ditching (landing on water)

 Decompression

 Fire Fighting

 Passenger Management

 Security Related Issues

 Extraordinary Situations

 First Aid

 Survival

The key job roles associated are –

 Cabin lead  Cabin attendants / crew / stewards  Trainees Key skill requirements

The key expected competencies are directly related to the function responsibilities. For the job roles detailed above the skill requirements have been outlined:  Passenger handling capabilities  Managing passengers with special needs  Soft skills  Customer centricity

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 106

Final Report

 Ability to adapt and think on-feet  Language skills  Interpersonal skills 4.2.2.4. Security

Security in airlines is a major function which requires diligence as well as proactiveness. This function spans across all the activities, constantly monitoring the requirements and ensuring all guidelines are adhered to. Objective

The Security function is responsible for safeguarding domestic and international civil aviation traffic against acts of unlawful interference, as guided by the ICAO Annexes and DGCA, BCAS requirements. This is a nodal function that ensures that passengers are able to move safely and the aircraft is also able to fly after complying with the various safety and security requirements. Function description

The airline’s safety function can be demarcated into the terminal and airside. Though both the sub functions have the same unified goal of secure travel, the same have been demarcated for outlining the difference between the terminal and airside operations.

Figure 37: flight operation and safety – key functions

Airline security

Terminal security Airside security

Source: Airlines interaction The key sub functions perform the respective modules so that the overall objectives are met.

Table 28: Airline security – sub-functions brief

Sub function Brief Key job roles associated Ensure the overall security in the terminal and also scans the passenger baggage. This function also scouts for un-attended baggage in the Terminal security → Security manager airline area and notifies the authority. This → Security executives function plays a proactive and vigilant role in → Security staff managing the overall security in the terminal The airside security function manages the airside Airside security related security. This function is active when the

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 107

Final Report

Sub function Brief Key job roles associated flight is about to depart and also during transit. In the latter case, the function personnel check for unattended baggage, boarding passes, etc When the flight departs the function checks the travel roster, boarding passes and baggage tags.

Key skill requirements

The key expected competencies are directly related to the function responsibilities. In the case of the security function the BCAS offers training in aviation security and the security managers (and other senior roles) posses the appropriate certification from BCAS which needs to be renewed. This is another function where skill gap in the traditional sense does not exist. The culture of vigilance and being proactive is inculcated simultaneously. Airlines hold internal drills and trainings to ensure personnel here are upto speed on all the requirements. This being said there is shortage of security personnel at the entry level. This needs to be addressed by creating capacity building ecosystem that will supply adequately skilled personnel to the airlines.

Key skill requirements – general aviation

Key skills that need to be groomed for the general aviation segment are36:

Limited Land and Varied Topography Calls for Remotely Placed Skills: India does not have the land for many more large airports, and the nation’s topography requires helicopter based connectivity. Skills for the same have to be developed

Helicopters/STOL Craft for Regional Connectivity Call for Specialized Skills: Helicopters along with Short Take-off and landing fixed winged turboprops, are affordable and therefore will emerge as preferred aircraft for Regional connectivity, as well as for the aggregation of passengers from the hinterland into large airports. Furthermore, helicopters will be the preferred craft for specific missions such as Medical Evacuation, Highway, Shore and Waterway Patrol, Natural Disaster Relief, Aerial Firefighting with Policing in Urban Metropolises and Search and Rescue operations over land and water. The skill requirements of these diverse and critically important missions are very distinct and unique and need to be developed. Also, the unique nature of these skills will also call for coordinated working with existing (non-aerial) terrestrial services such as hospitals, fire-fighting teams, security agencies etc. The coordination too will call for specialized skills which have to be developed

Enhancing a Safety Culture: Skills related to safety (such as inspection, fuel handling, fire-fighting, rescue etc). Any specialized future skill requirements needed to fly and operate diverse platforms of helicopters safely will have to be considered in the report as well. Existing institutes like National Institutes of Aviation Safety and Services may be leveraged to built safety specific skills

36 Source: Stakeholder consultation feedback received on Feb 25th 2016 from Sikorsky Aircraft Corporation

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 108

Final Report 4.2.2.5. Career progression analysis

Career progression analysis is critical from the twin perspectives of understanding the set of competencies that a job role needs to accrue to move the corporate ladder and what should be the training that will be offered for the movement. For the airlines segment the critical job roles in the core functions will be mapped with the career path with the typical lead time. This analysis of course leads to mapping the training ecosystem.

Career progression has been outlined for some key roles across the functions.

Figure 38: career progression of key roles - airline

Ticketing and check-in Dispatcher

Floor walkers Supervisor Dispatcher Minimum 2-3 Ticketing / years of Flight check-in service operation agent assistant Minimum 5-8 Minimum 2-3 years of years of service service

Security Cockpit crew Security manager Captain / Security commander exec Minimum 2-4 First officer Security years of staff service Minimum 5-7 years of Minimum 3-5 service years of service

Source: Industry discussion, IMaCS analysis. Cabin crew follows no. of flying hours which varies across industry

The entry level salary details for some of the roles are:

 First officer – Rs. 20,000 – Rs. 47,000  Cabin crew trainee – Rs. 15,000 – Rs. 20,000  Security – Rs. 15,000 – Rs. 20,000  Dispatcher – Rs. 200,000 and above

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 109

Final Report 4.2.2.6. Summary – airline segment critical job roles

This segment outlines the critical job roles, function-wise for the airline segment. Criticality of the job role for airline segment is based on:

 Identified core functions  The roles where there is skill dearth and requires immediate capacity building initiatives

Table 29: Critical job roles – airlines

Function Critical job roles Criticality (High, Medium and Low) - Check-in agent Medium - Ticketing agent Medium - Screeners High - Boarding personnel Medium Airport operation - Helpers (to hand out tags Medium and move luggage) - Helpers (to manage pax Medium with special requests) - Floor walkers Medium Flight operation and - Dispatcher High dispatch - Flight operation assistant High - Security manager High Security - Security executives High - Security staff High - Cabin lead Low - Cabin attendants / crew / Medium In flight services stewards - Trainees Medium MRO and cargo roles have been highlighted in the respective segments

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 110

Final Report 5. Segment- Maintenance, Repair and Overhaul (MRO) This chapter shall focus on the macro environment and identify key factors that have led to the growth/changes to MRO. Any change in the macro environment scenario in terms of investment flow, change in technology, etc is likely to impact the human resource requirement and the quality of human resource requirement of the sector and study segments. MRO segment was analysed from a global and Indian perspective. Building on the segment & sub-segment and functional analysis of the MRO segment, this chapter also maps the employment structure analysis which outlines the key skill requirements across critical job roles. Functional analysis is the main tool for mapping the key roles and responsibilities of the function; after mapping the overall organisation structure. Functions are thus discrete-ised in the organization structure and the key roles that are required to perform the function are delineated and identified. Across these roles the key skill building requirements are identified. Some of the key aspects that have been mapped as part of this analysis are: Table 30: Key Aspects Key terms used Brief description Function is an activity necessary for achieving the key purpose of the sector, occupation, or an area of work, which can be carried out by a Function person or a group of persons. Functions are identified through functional analysis Sub-functions are sub-activities essential to fulfil for achieving the Sub-function objectives of the function Job role defines a unique set of functions that together form a unique Job role employment opportunity in an organisation

Source: NSDC The above key concepts have been illustrated below:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 111

Final Report

The following structure has been adopted for this chapter, which are covered in the subsequent sections, segment-wise:

 Overall typical organization structure  Brief description/objective about the functions  Further detailing on key civil aviation specific function  Typical HR structure across the above function  Outline of critical job roles  The respective skill gaps  The typical salary and career progression 5.1. Segment & Sub-Sector Analysis

Maintenance, Repair and Overhaul (MRO) refers to all the services relating to ensuring aircraft safety and airworthiness. MRO providers can be categorised into four groups: in-house (e.g. Qantas Engineering); independent third-party (e.g. ST Aerospace); airline third party, which serve both their parent airline and other clients (e.g. Iberia Maintenance); and Original Equipment Manufacturers, or OEMs (e.g. Honeywell).

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 112

Final Report 5.1.1. Global Perspective

The global market for MRO is estimated at USD 62 billion with the market share focused on North America (35%), Western Europe (26%) and Asia Pacific (17%). The top 10 MRO providers are headquartered in these regions. According to CAPA and discussion with key stakeholders, the large international MRO service providers typically offer three main MRO capabilities: airframe, engine and component services. Engine maintenance makes up the largest proportion of the global market (35-40%), followed by component (20-25%), and airframe heavy maintenance (10-15%). Line maintenance accounts for 22% with modifications making up the balance 8%.

Figure 39: Global Share of Various MRO Activities in Total Market

Sources: CAPA, Industry sources Most major MRO service providers cater to only commercial customers with a few offering services to government and defence clients. Maintenance accounts for approximately 10% of airlines’ costs globally. 5.1.2. Indian Perspective

The civil aircraft MRO industry of India is small and constitutes almost 1% of the total global MRO market in USD terms. Indian carriers are expected to add 2 to 3 times their fleet size by 2035. This indicates a potential domestic MRO market, i.e., not counting the growth in Asia Pacific and the Middle East or defence aircraft sector growth. The potential market is also expected to grow because of increasing number of ageing fleet in the coming years, mainly in the scheduled operators and defence sectors.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 113

Final Report

Table 31: DGCA Registered Domestic Fleet

Class Type 2013-14 2012-13 2011-12* 2010-11* 2009-10* G Glider 62 61 59 59 59 H Helicopter 281 294 294 291 280 A Aircraft 1,200 1,177 1,178 1,159 1,093 U Ultra-light 40 40 40 40 40 X Experimental 6 6 6 6 6 M Motor Glider 2 2 2 0 0 D Hand Glider 24 24 24 24 24 B Balloon 21 20 20 17 15 Total 1,636 1,624 1,623 1,596 1,517 Source: DGCA; *Estimated-figures may vary slightly from actual

DGCA is responsible for registration of all civil aircraft in India. India has about 1,636 registered aircrafts. Of these, about 426 are scheduled passenger carrier operations including Airbus 300 series, Boeing 737, 757, and 777 and Bombardiers and ATRs. Industry estimates indicate that annual checks for a narrow-body aircraft cost around Rs 10-15 million, on which service tax amounts to Rs 1.5-2.2 million at 14.5%. Royalty to AAI adds Rs 1.95 million at 13%. Servicing an entire fleet at these rates turns out to be expensive for airlines, which are already facing low profitability because of high operating costs including fuel expenses and a highly competitive market. Consequently, they find it cheaper to go overseas for MRO requirements mainly because of the benefit of tax free service and quick turn-around time. Scheduled airlines operating in India seek nearly 90% of their MRO requirements (by value) from overseas companies, mainly because of cost advantages resulting from the disadvantages in the domestic market of higher taxes, procedural delays, higher turnaround time and inadequate MRO infrastructure available in India. Sri Lanka, Singapore, Malaysia, and the UAE are the most preferred destinations. 5.1.2.1. Key Players

MRO services are typically of four main types: airframe and modifications, engine, component servicing, and line or field maintenance. Engine maintenance constitutes the largest share of Indian MRO market at 50%, followed by component (17%), line maintenance (17%), and airframe heavy maintenance and modification (16%). DGCA approves domestic and international MRO companies for specific type of checks, maintenance or overhaul activities on specified make of Indian registered aircrafts and at specified locations. Most MRO companies of India are capable of providing primary level of services, but not advanced overhauls. Consequently, scheduled airlines go to either Dubai or the UK for secondary and tertiary level services. This means that despite significant demand, the scheduled operators’ MRO market is largely untapped by domestic service providers. In order to meet the demand for advanced services, several domestic and international aviation players are entering the industry. In the absence of a well‐developed MRO base in India, there are around 58 DGCA approved overseas MROs providers to conduct work on Indian‐registered aircrafts, in locations such as the UK,

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 114

Final Report

Germany, France, Romania, Jordan, Israel, the UAE, Sri Lanka, China, Singapore, Malaysia and Australia. With the increase in the number of civil and military aircrafts, more and more global MRO companies are planning to offer engineering services by forming joint ventures with Indian firms. Some of the joint ventures formed are as follows (although a number of ventures are signed but yet to take off):

• Airbus with Air India  GMR Hyderabad International Airport • Boeing with Air India Ltd. (GHIAL), with Malaysian • Jupiter Aviation with HAL Aerospace Engineering (MAE). • Sabena Technics of TAT Group, France  Aerospace Engineering Company with TAAL (MGAE), a joint venture for third party • Timco Aviation Services with HAL airframe MRO facility. • EADS with Air India and Jupiter  Pipavav Defence and Offshore Aviation & Logistics Engineering Co. Ltd with Airbus SAS. • Eurocopter with Pawan Hans Helicopters for Dauphin fleet • Concor with HAL • SIA Engineering of Singapore with Wadia group • Pratt and Whitney with HAL (engines) • GE Aviation with Air India (engines) • Air France Industries KLM with Max Aerospace • Rosoboron export of Russia and India’s Krasny Marine Services for Russian fleet • Taneja Aerospace with Air Works Commercial MRO Services Pvt Ltd  GMR with Lufthansa Technik for first foreign-owned, airport maintenance facility in India.  EADS with Indian Aero Ventures for airport development and operation, MRO services for aircraft and engines, Aviation training academy and manufacture of trainer aircraft and aircraft interiors.  Max Aerospace with Air France-KLM for MRO facility for aircraft components in India. • Maini Global Aerospace Pvt. Ltd (MGA) with GE Aviation.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 115

Final Report

5.1.2.2. Trends

According to Boeing, India is a country which has high propensity to fly. With a yearly 14-15% projected industry growth, India is a market with high potential for significant fleet-size enhancement. Asia Pacific and South Asia, therein, is the fastest growing aviation market. This makes India a natural location for creating an MRO hub, although, neighbours such as Sri Lanka and Bangladesh are also in the running. As mentioned earlier, many domestic and international MRO/ technology firms are forming joint ventures to capitalise on the market potential as soon as the regulatory and certification constraints ease. There is a 5-6 year window for the fledgling MRO industry to gear-up for opportunities beyond 2020. While a large pool of technically trained manpower is available in India, the talent pool of aerospace specific technicians is small. As a result, migration of talent pool is a specific concern for the industry. India’s IT industry is already a significant supplier of software for avionics. In the coming years, the industry is expected to benefit significantly from MRO service growth. 5.1.2.3. The way forward

The scale of growth anticipated in the next 20 years could cause significant increase in MRO requirements. In the next 6-10 years, there is opportunity for the MRO sector of India to prepare to tap the significant demand growth from scheduled operators. In addition to domestic aviation, potential exists for maintenance and overhaul of international aircrafts flying over India and markets of neighbouring countries. However, there is a need for operational and regulatory roadblocks to be removed for the MRO industry to develop and grow. Lack of hangar space in or near airports is cited as a major hurdle to development of the industry. High cost of domestic funds for this capital intensive industry is another major concern. Availability of skilled manpower that requires regular training upgrades is a major roadblock. Operational issues such as maintaining acceptable turn- around time and requirement of continual tooling for a variety of aircrafts are some additional constraints that need to be overcome. Regulatory requirements of certifications to be achieved by personnel over much longer durations than international practice also pose a major constraint. Concerns related to stocking of parts and its implications on customs duty has been a long-standing issue. For tooling, certification from safety regulators is required for different aircraft types such as corporate jets, turboprops and helicopters. Each individual aircraft type requires trained technical manpower, tooling, and approvals from regulator as well as the OEM to enable an MRO to offer world-class maintenance services. Royalty payments to AAI and higher tax rates than competing industry in the region add to the difficulties of domestic MRO service providers. Hedging against currency exchange rate fluctuations is also important since most of the parts are imported. Overall, the industry expects the government to create a level playing environment for Indian MROs when they compete with their global peers to attract business into the country. Since MRO industry is manpower intensive, the industry expects the government to develop an environment for skilling human resource that can handle complex aerospace systems. The existing training institutions need to be upgraded and expanded to international standards. Since most aircrafts are leased from European or US companies, it becomes impetrative for Indian MRO to comply with Federal Aviation Administration (FAA) or the European Aviation Safety Agency (EASA) certifications. The industry has

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 116

Final Report suggested that CAR-145 should be aligned with these standards completely and personnel certification exams should be manual-based and not memory-based. The industry also demands tax breaks or incentives in order to compete with operators in Sri Lanka, UAE, Hong Kong, Singapore and China. Taking this into cognisance, the Draft Civil Aviation Policy, 2015 has highlighted about the MRO segment. For MRO industry, the draft policy has the following provisions: 1. Service Tax on output services of MRO will be zero-rated. 2. Aircraft maintenance tools and tool-kits will be exempt from Customs duty. The exemption shall be given on the basis of list the tools and tool kits notified by the DGCA from time to time. 3. MROs are at present required to provide proof of their requirements of parts, or orders from their client airlines. However, aircraft parts are used exclusively in the aircraft and are designated by Part Numbers as given by aircraft and related OEMs. Therefore, the process for the clearance of the parts shall be simplified by allowing for self-attestation by the MROs. 4. To enable economies of scale, the period for which the spare parts imported by MROs can be stored tax-free shall be extended to 3 years. 5. To allow import of unserviceable parts by MROs for providing exchange/advance exchange, the concerned notification shall be reviewed and revised to also enable advance export of serviceable parts. 6. Foreign aircraft brought to India for MRO work will be allowed to stay for the entire period of maintenance or up to 6 months, whichever is lesser, provided it undertakes no commercial flights during the stay period. The aircraft may, however, carry passengers in the flights at the beginning and end of the stay period in India. For stay beyond 6 months, DGCA’s permission will be required. 7. Foreign MRO experts will be provided visas promptly, especially in cases of an Aircraft on Ground (AOG) situation. 8. Foreign pilots operating an aircraft to and from India for the purpose of servicing at an Indian MRO entity will be issued Temporary Landing Permits. 9. The provision under AIC 3 of 2010 of DGCA shall be reviewed to declare MRO (Aircraft servicing) as a separate category instead of clubbing with Ground Handling (GHA) for security procedures and remove restrictions on foreign registered aircraft for MRO work. 10. MoCA will persuade State Governments to make VAT zero-rated on MRO services. 11. Provision for adequate land for MRO service providers will be made in all future airport projects. 12. Airport royalty and additional levies on MRO service providers will be rationalised in consultation with Airport Operators. With the industry poised to grow, there is an urgent need to re-look at the skills required and plan an ecosystem to build the same. 5.2. Employment Structure and Skill Requirement Analysis

Objective

Maintenance, Repair and Overhaul (MRO) refers to all the services relating to ensuring aircraft safety and airworthiness. MRO providers can be categorised into four groups: in-house; independent third

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 117

Final Report party; airline third party, which serve both their parent airline and other clients; and Original Equipment Manufacturers, or OEMs. MRO standards and procedures are very detailed due to the international and Indian regulatory requirements that not only must an aircraft be certified or registered, but also every part that goes into an aircraft. There are predetermined repair and overhaul cycles for aircraft and life-span for parts, i.e., the number of times, and/or the number of hours a single part can be re-used, re- installed, or re-cycled before it is replaced. In India, the organisations engaged in the maintenance of aircraft and aircraft components are approved as per the Rule 133B of the Aircraft Rules 1937. In order to harmonize requirements for approval of aircraft maintenance organizations with that of international requirements, which was primarily based on EASA Part-145 regulation CAR 145 Revision 0 was introduced on 26th January 2005. Since the initial issue of CAR 145, it has been revised from time to time to synchronize with EASA Part- 145. Subsequently, CAR 145 Issue 02 dated 8th October 2013 is issued based on latest revision to EASA Part-145 and further SARI 145 Revision-1 Dated 15th November 2012. This CAR is issued under the provisions of Rule 133A of the Aircraft Rules 1937. Key activities in MRO

As discussed earlier, MRO services are typically of four main types: airframe and modifications, engine, component servicing, and line or field maintenance. Engine maintenance constitutes the largest share of Indian MRO market (similar to the Global market) at 50% and followed by component (17%), line maintenance (17%) and airframe heavy maintenance and modification (16%). Figure 40: Typical activities of MRO

Components Engine overhaul Airframe and/or Line maintenance maintenance every 1-1.5 years or modifications every 5-6 (100-15 flight hours) every 3 months or 500- 2,500-7,500 hours years 600 hours

Typically, line maintenance is required to be performed after every 100-150 flight hours. It usually takes about 7-8 hours to complete. Component MRO is conducted every 3 months or about 500-600 hours. Engine overhaul may be conducted every 1-1.5 years and on completion of 2,500-7,500 hours depending on manufacturer’s specifications. Airframe heavy maintenance and modifications is usually undertaken after every 5-6 years. These standards may vary from aircraft to aircraft. A typical maintenance check procedures and schedules for airline are outlined below for illustrative purpose.

Table 32: Maintenance Check Procedures and Schedules - Example

American Airline’s Maintenance Check Procedures "PS" Daily Checks Each aircraft is checked every 2-3 days in its "PS" (Periodic Service) check. The aircraft is visually inspected and its maintenance log book is checked for entries and maintenance needs. The "PS" check can be performed

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 118

Final Report

American Airline’s Maintenance Check Procedures overnight or during downtime during the flight day. It averages approximately 2 man-hours.

"A" Checks The "A" check is more detailed than the "PS" check. "A" checks are performed every 7- 9 days (approximately 80 - 100 flight hours). The "A" check is performed at one of 40 stations around American’s system. It averages 10-20 man-hours.

"B" Checks The "B" check is an even more thorough maintenance check. The "B" check is accomplished approximately every two months (roughly 500 - 600 flight hours). Besides specific service performed on the aircraft, a detailed series of systems and operational checks are performed. American always performs "B" checks inside one of its hangars at seven different cities around its system. A "B" check requires approximately 100 man- hours on narrow-body aircraft (those with only one aisle) and approximately 200 - 300 man-hours on wide- body aircraft (those with two aisles).

"C" Checks The "C" check is the most thorough type of maintenance work performed by American. The airframe - virtually the entire aircraft - goes through an exhaustive series of checks, inspections and overhaul work. It is performed at either of American’s heavy maintenance and engineering centers in Tulsa, Oklahoma or the Alliance Maintenance Facility in Fort Worth, Texas. There are different levels of "C" checks depending on the type of aircraft.

Narrow-body "C" Checks American does two types of "C" checks on its narrow-body planes. The first is a "Light C" check, which occurs approximately every 15 - 18 months. It requires approximately 2,100 man-hours and three days to accomplish. Every fourth "Light C" check becomes a "Heavy C" check. This check requires 20,000 - 30,000 man-hours and takes from three to five weeks to accomplish.

Wide body "C" Checks Because of the complexity of wide-body aircraft, all "C" checks are "Heavy C" checks. The complete airframe inspection and service is done every 24 - 30 months. It takes approximately 10,000 man-hours and from two to four weeks to accomplish a wide-body "C" check.

Jet Engine Overhauls Modern jet engines are among the most reliable devices in aviation. American does not replace and overhaul jet engines at a specific number of hours. Instead, American uses a 24-hour-a-day "condition monitoring" process that scientifically tracks the condition of every engine on every aircraft. Besides visual inspection, technicians monitor the internal condition of every engine, using such procedures as boroscope inspections and oil sample spectographs. The goal is to replace and overhaul an engine before a problem can occur. Engine overhauls are performed at the Tulsa and Alliance-Fort Worth Maintenance and Engineering facilities. The engine replacement is usually performed at one of the six "B" check hangar locations around the country. Source: Source: American Airlines, December 2011

It is estimated that just about 10% of MRO work required in civil aviation industry is carried out in India. The balance 90% is outsourced to third-party service providers outside the country. The ’A’ checks of Line maintenance or miles based checks are mostly performed by the operators as per their monthly aircraft maintenance schedules. The operators usually employ their own engineers and technicians for the work. The ‘B’, ‘C’ and ‘D’ checks of Engine maintenance, Components other than complete Engines or APUs and Non-destructive testing, respectively, require more labour and hangar infrastructure. These works are performed by DGCA approved overseas MROs companies for

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 119

Final Report scheduled carriers. The MRO companies registered in India usually undertake ‘B’ and ‘C’ checks, mostly, for Non-scheduled Operators for their aircrafts and helicopters. Based on the capability of maintenance organisation to carry out specific maintenance activities, the organisation are classified as follows: . A category A class rating means that the CAR-145 approved maintenance organisation may carry out maintenance on the aircraft and any component (including engines/APUs) only whilst such components are fitted to the aircraft except that such components can be temporarily removed for maintenance when such removal is expressly permitted by the aircraft maintenance manual to improve access for maintenance subject to a control procedure in the maintenance organisation exposition acceptable to DGCA. The limitation section will specify the scope of such maintenance thereby indicating the extent of approval. . Category A class ratings are subdivided into ‘Base’ or ‘Line’ maintenance. A CAR- 145 approved maintenance organisation may be approved for either ‘Base’ or ‘Line’ maintenance or both. It should be noted that a ‘Line’ facility located at a main base facility requires a ‘Line’ maintenance approval. . A category B class rating means that the CAR-145 approved maintenance organisation may carry out maintenance on the uninstalled engine/APU (‘Auxiliary Power Unit’) and engine/APU components only whilst such components are fitted to the engine/APU except that such components can be temporarily removed for maintenance when such removal is expressly permitted by the engine/APU manual to improve access for maintenance. The limitation section will specify the scope of such maintenance thereby indicating the extent of approval. A CAR-145 approved maintenance organisation with a category B class rating may also carry out maintenance on an installed engine during ‘base’ and ‘line’ maintenance subject to a control procedure in the maintenance organisation exposition. The maintenance organisation exposition scope of work shall reflect such activity where permitted by DGCA. . A category C class rating means that the CAR-145 approved maintenance organisation may carry out maintenance on uninstalled components (excluding engines and APUs) intended for fitment to the aircraft or engine/APU. The limitation section will specify the scope of such maintenance thereby indicating the extent of approval. A CAR-145 approved maintenance organisation with a category C class rating may also carry out maintenance on an installed component during base and line maintenance or at an engine/APU maintenance facility subject to a control procedure in the maintenance organisation exposition. The maintenance organisation exposition scope of work shall reflect such activity where permitted by DGCA. . A category D class rating is a self contained class rating not necessarily related to a specific aircraft, engine or other component. The D1 — Non-Destructive Testing (NDT) rating is only necessary for a CAR-145 approved maintenance organisation that carries out NDT as a particular task for another organisation. A CAR-145 approved maintenance organisation with a class rating in A or B or C category may carry out NDT on products it is maintaining subject to the maintenance organisation exposition containing NDT procedures, without the need for a D1 class rating.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 120

Final Report

Table 33: Various Maintenance Checks

CLASS RATING LIMITATION BASE LINE Aircraft A1 Aeroplanes/ above 5700 kg Will state aeroplane/series or type and/or the maintenance task(s) Will state aeroplane/ manufacturer or A2 Aeroplanes/ group or series or type and/or the 5700 kg and below maintenance tasks Will state helicopter manufacturer or A3 Helicopters group or series or type and/or the maintenance task(s) A4 Aircraft other than A1, A2 and A3 Will state aircraft series or type and/or the maintenance task(s) Engines B1 Turbine Will state engine series or type and/or the maintenance task(s) B2 Piston Will state engine manufacturer or group or series or type and/or the maintenance task(s) B3 APU Will state engine manufacturer or series or type and/or the maintenance task(s) Components C1 Air Conditions & Press other than C2 Auto Flight complete Will state aircraft type or aircraft manufacturer or C3 Communications and Navigations engines or component manufacturer or the particular component APUs C4 Doors — Hatches and/or cross refer to a capability list in the exposition and or C5 Electrical Power the maintenance tasks C6 Equipment C7 Engine — APU C8 Flight Controls C9 Fuel — Airframe C10 Helicopter — Rotors C11 Helicopter — Trans C12 Hydraulic C13 Indicating and Recording System C14 Landing Gear C15 Oxygen C16 Propellers C17 Pneumatic C18 Protection ice/ rain/ fire C19 Windows C20 Structural C21 Water Ballast C22 Propulsion Augmentation

Specialised D1 Non-Destructive Testing Will state particular NDT method(s) Services

5.2.1. Functional Structure

Depending upon the nature of organisation and capability to perform maintenance functions, the organisation structure of MRO varies considerably.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 121

Final Report

Table 34: Lufthansa Technik - Diversified MRO Organisation Structure and Services

Lufthansa Technik is the world’s leading provider of maintenance, repair and overhaul services (MRO) for civil commercial aircraft. The Lufthansa Technik group includes 31 technical maintenance operations around the world with a total of 20,000 employees. The company also holds direct and indirect stakes in 53 companies.

Lufthansa Technik offers its range of services via seven product divisions: maintenance, aircraft overhaul, engines, components, aircraft systems, innovation and completion and servicing of VIP aircraft. The portfolio consists of a variety of different product structures and combinations, from the repair of individual components to consultancy services and the fully integrated supply of entire fleets. These Total Support service packages guarantee customers full-service treatment, including complete fleet management, making them the company’s most popular products. By developing new products and services, Lufthansa Technik also enables airlines to safely put new aircraft types and technologies into scheduled operations and to save fuel.

Lufthansa Technik has nearly 800 customers around the world, mostly airlines and aircraft leasing companies, but also operators of VIP jets and public-sector clients. Altogether, Lufthansa Technik kept its market position in 2014. The company remains global market leader among independent MRO providers – its comprehensive and modern product portfolio covers around 80 per cent of the market by volume.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 122

Final Report

Indian MRO – Emerging MRO Organisation Compared to global MRO companies, the Indian MRO organisations at smaller scale and offers highly specialised services (Refer Figure below for the services in India)

Figure 41: MRO Services in India

Air India MRO Services

Maintenance Services Engine Specialised Services • Line • Training •NDT • Base • Asset Training • Calibration • Engine & APU Overhaul • Project Management • Engine Borescopes • Avionics and Components • Materials Management • Proof Load Test of Aircraft Jacks Overhaul • QA and Lifting Devices • Structural Repairs • CAM • Hydraulic Tubing • Cabin & Seat Repair • On wing engine cleaning • Landing Gear Repair and • Facility and Equipment Support Overhaul

Airworks

Aircraft Aircraft Paint & Aircraft Commercial, Business and Parts Avionics Management Refinishing Sales General Aviation MRO Distributions

GMR Aero Technic Ltd

Base Maintenance Line Maintenance

Workshop Facilities Battery Shop, Cable fabrication, Composite Workshop, Flight Controls workshops, Galley Workshop, Non-destructive Testing [NDT]s Oxygen Workshop, Heat Treatment Workshop, Welding Workshop Aircraft placard shop, Upholstery shop, Sheet Metal Shop, Cabin equipment and Appearance, Seat bay The typical human resources functional break-up of MRO companies is outlined below:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 123

Final Report

Figure 42: Functional breakup – MRO

Others 10% QA 5%

Stores Maintenance 6% 50% Planning 6%

Workshop 23%

Source: IMaCS analysis, Industry sources Dependent on the size of the operation and the organisational set-up, the functions may be further bifurcated. The actual number of persons required for various MRO functions depend upon the tasks to be performed, size and complexity of the organisation (general aviation aircraft, corporate aircraft, number of aircraft and the aircraft types, complexity of the aircraft and their age and for commercial air transport, route network, line or charter) and the amount and complexity of maintenance contracting. Hence, the total number of person varies significantly and differs greatly from one organisation to another. Regardless of nature of services provided and complexity of operations, some of the key job roles in MRO organisation are: Table 35: Key Job Roles- MRO # Key Job Roles 1 Accountable Manager (Senior Management) 2 Line Maintenance Manager, Base Maintenance Manager and Work Shop Manager 3 Certifying staff, technicians, and mechanics – type rated for aircraft, facilities and components 4 Technical support personnel such as, planners, engineers, technical record staff 5 Quality control/assurance 6 Specialised services staff 7 Human factors staff/ human factors trainers 8 Store department staff and purchasing department staff 9 Ground equipment operators 10 Contract staff in the above categories 11 IT ERP manager 12 Supply Chain Manager Given the importance and criticality of maintenance functions, the regulators, OEM, and organisation have institutionalised rigours process for maintenance through training, assessment, certification, and monitoring and evaluation system. In line with international practice the aviation and aerospace sector skill council of India to formulate National Occupational Standards for MRO industry in line with National Skill Qualification Framework (NSQF).

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 124

Final Report 5.2.2. Key Skill Requirements

Some of the key skill requirements for MRO industry are outlined below (illustrative in nature). These have to translate to NOS. The detailing of NOS will vary significantly depending upon the aircraft type and criticality of skill. Table 36: Illustrative list of NOS # Illustrative list of National Occupational Standards 1. Implementation of DGCA approved maintenance program 2. Work within of MRO organization 3. Work within aviation regulations (DGCA and international) 4. Implementation of DGCA and International quality control review 5. Implementation of DGCA and International documentation systems 6. Manage organization specific policy, process and systems for effective MRO delivery 7. Implementation of human factors training procedure 8. Implementation of Critical Design Configuration Control Limitations CDCCL 9. Planning of line maintenance activities 10. Planning of base maintenance activities 11. Removing and replacement various components 12. Installation of various aircraft systems (engine, fuel systems, hydraulic, panels and soft furnishings, power supplies, power transmission systems) 13. Repairing of various aircraft systems and components 14. Machining of aircraft components 15. Monitor, Maintain and Review Mechanism of MRO activity 16. Manage sourcing of various components 17. Maintenance of store and purchase function 18. Maintenance of ground equipment facilities 19. Coordination of hanger functions 20. Manage security, safety, health and environment in various MRO functions 21. Manage waste disposal system in various MRO functions 22. Calibration of various instruments 23. Design and Development of skill matrix for critical job roles 24. Maintain effective communication and coordination system 25. Manage IT ERP system for effective supply chain management 5.2.3. Trends

Aviation technology enhancements will be a key trend in coming years. Technology developments will target more fuel efficient engines, use of advanced materials for aircrafts, enhanced range and payload capabilities, noise reduction, interiors and space efficiency, greater use of IT for maintenance, ground and in-flight operations, safety and customer service – are likely to be the key focus areas According to Boeing, airlines are seeking airplane and engine health management solutions that provide better prognostic capabilities. The ability to predict maintenance events and connect with maintenance operations during flight can minimize the number and duration of flight disruptions. Improved disruption management solutions can reduce the system-wide effect of delays and cancellations. Digital delivery of maintenance manuals and other technical information, updates, technical authoring tools, and data conversion technologies all improve the efficiency and accuracy of airline maintenance operations. Supply-chain solutions using optimized inventory management and parts procurement solutions can also reduce operating costs. In some cases, new aircraft

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 125

Final Report technology is driving airlines to improve their own technology and capabilities. The scale of growth of the as mentioned, shall demand significant MRO requirements across the globe. 5.2.4. Summary – Critical Job Roles

This segment outlines the critical job roles in MRO. Criticality of the job role for MRO is based on:

 Identified core functions  The roles where there is skill dearth and requires immediate capacity building initiatives # Key Job Roles Criticality 1 Accountable Manager (Senior Management) High 2 Line Maintenance Manager, Base High Maintenance Manager and Work Shop Manager 3 Certifying staff, technicians, and mechanics – HIgh type rated for aircraft, facilities and components 4 Technical support personnel such as, planners, Medium engineers, technical record staff 5 Quality control/assurance High 6 Specialised services staff High 7 Human factors staff/ human factors trainers High 8 Store department staff and purchasing Medium department staff 9 Ground equipment operators Medium 10 Contract staff in the above categories Medium 11 IT ERP manager Medium 12 Supply Chain Manager Medium

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 126

Final Report 6. Segment- Cargo This chapter shall focus on the macro environment and identify key factors that have led to the growth/changes to cargo. Any change in the macro environment scenario in terms of investment flow, change in technology, etc is likely to impact the human resource requirement and the quality of human resource requirement of the sector and study segments. Cargo segment was analysed from a global and Indian perspective. Building on the segment & sub-segment and functional analysis of the cargo segment, this chapter also maps the employment structure analysis which outlines the key skill requirements across critical job roles. Functional analysis is the main tool for mapping the key roles and responsibilities of the function; after mapping the overall organisation structure. Functions are thus discrete-ised in the organization structure and the key roles that are required to perform the function are delineated and identified. Across these roles the key skill building requirements are identified. Some of the key aspects that have been mapped as part of this analysis are: Table 37: Key Aspects Key terms used Brief description Function is an activity necessary for achieving the key purpose of the sector, occupation, or an area of work, which can be carried out by a Function person or a group of persons. Functions are identified through functional analysis Sub-functions are sub-activities essential to fulfil for achieving the Sub-function objectives of the function Job role defines a unique set of functions that together form a unique Job role employment opportunity in an organisation

Source: NSDC The above key concepts have been illustrated below:

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 127

Final Report

The following structure has been adopted for this chapter, which are covered in the subsequent sections, segment-wise:

 Overall typical organization structure  Brief description/objective about the functions  Further detailing on key civil aviation specific function  Typical HR structure across the above function  Outline of critical job roles  The respective skill gaps 6.1. Segment & Sub-Sector Analysis

The air cargo segment is one of the most critical segments for the aviation industry in terms of its overall role in the logistic value chain and the value it represents. Air cargo logistics plays a vital role in the economic development. The air cargo industry presents a wide variety of service providers coming together to move goods both domestically and internationally with the purpose of faster and efficient delivery.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 128

Final Report

Figure 43: Key Players in the Air Cargo Supply Chain

Integrated express service Ground providers Handling Forwards service proividers

Domestic cargo Air cargo transport terminal service operators providers

Air Cargo Custome home Airlines Supply Chain agents

These business entities in the air cargo logistics industry in turn interact with a number of cross- border regulatory agencies, of which the principal is the Customs establishment. Speedier services in the Air Cargo supply chain facilitate large number of business entities to become more competitive. The global and Indian analysis of the segment in terms existing infrastructure and traffic flow, economic performance and future growth has been detailed in the following sections. 6.1.1. Global Perspective

Air cargo represents about 12% of the global airline industry’s revenues. As about 35% of the value of goods traded internationally is transported by air directly employing around 2 million people, air cargo is also an indicator of global economic health. Consumer and business demand for goods and services inevitably translates into higher demand for transport and logistics services37. This essentially serves as the key driver for the air cargo segment. The air cargo is carried either by passenger flights or dedicated freighters. Dedicated freighters offer the following advantages over passenger flights,

 More predictable and reliable volumes and schedules.  Greater control over timing and routing.  Variety of services for outsize cargo, hazardous materials, and other types of cargo that cannot be accommodated in passenger airplanes.  Range restrictions on fully loaded passenger flights and the limited number of passenger frequencies serving high-demand cargo markets make freighters essential where both long- range and frequent service are required. World air cargo comprises three main service sectors: scheduled freight, charter freight, and mail. Scheduled freight is the largest component, accounting for 88% of world air cargo traffic. There are

37 Source: MoCA – Air Cargo Logistics in India

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 129

Final Report at present 1,690 freighters. Freighters carry about 72% of all air cargo carried between Europe and Asia, as well as 43% of all cargo carried between Europe and North America. Figure 44: Freight Fleet

1,690 freighters

21% Standard-body 35% conversions Medium-widebody production 24% Widebody conversions 20% Large production

Source: Boeing. Air Cargo Outlook, 2015 The performance of the air cargo sector in the perspective of the globe and India is discussed in the following sections. 6.1.1.1. Air Cargo Trends

Globally, a total of 102 mt was handled at airports. Worldwide airport cargo increased 6.2% in 2014 to 102 mt, with positive levels of growth across all six regions. Air cargo saw a prolonged period (2008 to early 2013) of weak growth owing to two reasons—weak world economy and slack trade growth. After rebounding more than 19% in 2010 over the depressed levels of 2009, world air cargo traffic stagnated from mid-2011 to early 2013. World air cargo traffic began to grow again in the second quarter of 2013. Overall, world air cargo freight traffic increased 4% in 2013, with growth improving to 6.2% in 2014. The trend in the cargo traffic is given in Table. Table 38: Region-wise Air Cargo Traffic

Cargo Traffic (million tonnes) 2011 2012 2013 2014 CAGR Africa 1.8 1.8 1.8 1.9 1.9% Asia/Pacific 34.0 33.8 37.0 40.5 6.0% Europe 18.2 17.8 17.8 18.4 0.4% Latin America/Caribbean 5.0 5.0 5.1 5.0 -0.2% Middle East 5.9 5.9 6.5 7.4 7.6% North America 28.3 28.1 27.9 28.9 0.8% Total 93.2 92.4 96.1 102.1 3.1% Source: ACI  Emerging and developing markets have seen a steady growth. During 2012-14, cargo handling grew at CAGR of 6% in Asia-Pacific, and 7.6% in the Middle East.  Around 40% of the freight is handled in the Asia-Pacific region followed by 28% in North America. Hong Kong (HKG) and Memphis (MEM) take the first and second places respectively for the busiest air cargo airports with 4.4 million and 4.3 million metric tonnes, respectively in 2014.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 130

Final Report

 Airlines based in Asia, Europe, and North America have accounted for more than 80% of the world’s air cargo traffic from 2011 to 2014.  Share flown by airlines based in Asia, including those based in China, grew from 28% in 1992 to 39% in 2010, reflecting the rapid expansion of Asian export markets. Figure 45: Region-wise Air Cargo Traffic

2014, 102 million tonnes

2% Africa

28% Asia/Pacific 40% Europe Latin America/Caribbean 18% 7% Middle East 5% North America

Source: ACI As per Boeing, the market share of airlines based in Asia and the Middle East has grown relative to that of airlines based in other regions. Scheduled air freight continues to claim the largest share of the air cargo market relative to charter and mail services. 6.1.1.2. Growth Trends

World cargo traffic is strongly related to GDP. As per Boeing, with world GDP predicted to grow at 3.3% per annum, the traffic is expected to grow more than double between 2013 and 2033. Air cargo markets in Asia are likely to lead all other international markets in average annual growth between 2013 and 2033 as it is forecasted to grow faster than any other international world market, averaging 6.5% growth per year. The share of world air cargo traffic associated with Asia, including the domestic markets of China and Japan and all international markets connected to Asia, is likely to increase to 61.1% in 2033. 6.1.2. Indian Perspective

India’s international Air Trade to GDP ratio has doubled from 4% to 8% in the last twenty years. From the point of view of the Airline industry, Air Cargo Services contribute about 20% of their revenue and employ about 70 thousand persons. The air cargo pattern in the past and future projections is provided below.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 131

Final Report

Figure 46: India—Air Cargo Traffic Pattern

in tonnes Cargo Traffic (Domestic) Cargo Traffic (Intl.) 2,500

2,000

1,500

1,000

500

0

2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010 2011 2012 2013 2014 2015

2017F 2018F 2019F 2020F 2016F Source: CMIE, IMaCS Analysis It is expected that adequate capacity will be deployed by the operators to meet the growth cargo traffic requirements in the years to come. Capacity additions in this sector are expected to be determined by market forces. A major 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. 6.1.2.1. Freight Operations

Total freight traffic registered a CAGR of 6.2% over FY2006-14. While domestic freight traffic increased at a CAGR of 7.1% over FY2006-14, international freight traffic rose 5.8% over the same period. In FY2014, while domestic freight traffic was 0.9 million tonnes, international freight traffic was at 1.5 million tonnes. During FY2014, domestic freight traffic at 0.9 million tonnes increased by 7.1%; international freight traffic increased 2.4% to 1.5 million tonnes. Freight traffic is expected to increase five times to around 11.4 million tonnes by 2032. Growth in import and export in India will be the key driver for growth in freight traffic as 30% of total trade is undertaken via airways.

Figure 47: Freight Traffic

Domestic ('000 tonnes) International ('000 tonnes) 1,600 1,400 1,200 1,000 800 600 400 200

0

6 7 8 9 0 1 2 3 4

FY200 FY200 FY200 FY201 FY201 FY201 FY201 FY201 FY200 Source: Government of India, IMaCS Analysis

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 132

Final Report 6.1.2.2. Forecast of Air Freight Traffic

For the purpose of forecasting air freight traffic, India’s annual GDP growth rate is assumed to range from 8.5% in the near term to 6% in the long term on an average as the expected scenario in the period 2011-12 to 2030-31. The International GDP growth rate assumption has been taken to be 3.25% in the near term and 3% in the long term as the likely scenario keeping in line with the IMF expected GDP growth rates.

Figure 48: Cargo Handled in Million Metric Tonnes (MMT)

20 18 18.19 16 14 12 11.66 Domestic Cargo 10 8 Internatinal Crago 6.98 6 Total Cargo 4 3.92 2 2.39 0 2010-11 2015-16(E) 2020-21(E) 2025-26(E) 2030-31(E)

Source: Government of India, IMaCS Analysis 6.1.2.3. Key Drivers of Air Cargo

The air cargo segment is expected to grow primarily because of increased positivity in the overall economic climate. The other major growth drivers are indicated below:

 Just-in-time manufacturing coupled with global outsourcing business model pushing demand for air cargo. Faster movement of raw materials, components, parts and spares need to be the order of the day.  Growth of passenger fleets could provide ample capacity for cargo movement both in the domestic and international segment. According to Airbus Global Market Forecast (2010- 2029) in December 2010, the passenger fleet in service stood at 322 (passenger aircraft with over 100 seats) which is expected to go up three times by 2029. Further aircraft order in the books which stood at 280 is expected to go up by 23 times by 2029.  Express industry is certain to grow many folds in the future as they provide end to end solutions which are fast, reliable, on demand, integrated and door to door and can be tracked and controlled throughout the journey. They also handle customs clearance and duty and tax payments for the industry. Also, according to Airbus Global Market Forecast (2011), the Indian express industry is expected to require 110 small jet freighter aircraft (which can carry a payload of 10 to 30 tons) by 2029, which is 15.4% of the global small jet freighter aircraft demand.  GDP growth India is forecast to grow at an average of 7-9% over the next 5 years and thus India could be at the centre of supply The above key factors offer a buoyant forecast for the domestic air cargo segment. Domestic cargo, international freight and total cargo traffic are set to grow at a CAGR of approximately 10-11% till the period 2031-32. Higher domestic cargo traffic is also indicative of the general health of the

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 133

Final Report economy. Higher cargo volume indicates greater final consumption, better performance of domestic manufacturing and services sector. By 2031-32, domestic cargo traffic might register over two and half times the traffic levels. International cargo traffic could also register over two times the traffic of 2020-21. The domestic and international Air Cargo in India is expected to grow by 5 times the present level in the next twenty years. The air cargo segment, due to its multiple interfaces has not found an ‘organic’ means for growth, i.e. growth supported by a standard training infrastructure which gives the industry its requirement of personnel. The Draft Civil Aviation Policy, 2015 also sets ambitious targets for this segment: Draft Civil Aviation Policy, 2015 : Air Cargo Thrust—Key Features  Air cargo will be accorded ‘infrastructure’ status if co-located with an airport and will be eligible for Sec 80IA benefits.  The Air Cargo Logistics Promotion Board (ACLPB) has been constituted to promote growth in air cargo by way of cost reduction, efficiency improvement and better inter-ministerial coordination.  BCAS will continuously review and simplify security procedures for air cargo in light of the changing business dynamics and evolving technology, while ensuring adequate checks and balances.  Advanced Cargo Information (ACI) system will be implemented by 1 April 2016 to facilitate faster processing by Customs, security agencies and terminal operators.  The government will endeavour that all relevant central government authorities are available under one roof, at the cargo terminals. These include MoF (Customs), MoEF (wild life clearance for handicrafts etc), MoCF (Drug Controller), MoA (Plant and Animal Quarantine), MoC (Archaeological Survey of India) etc. Clearances will be given promptly and online after necessary checks.  Freighter aircraft suffer from low priority accorded in terms of time slots and parking bays. ACLPB will lay down norms to address the issue.  The government will consider providing incentives for skill development of people employed in the air cargo value chain.  AAI will be permitted to provide space on 10-year lease to operators of express cargo and freighters who may then develop dedicated infrastructure to improve their operational efficiency.  MoCA will encourage development of cargo-villages near airports.

Catering to the growth of this magnitude would involve expansion of infrastructure facilities, simplification of procedures and adoption of Information Technology/Automation besides development of Human Resources in the sector. With the need to build the industry relevant training infrastructure, air cargo segment skill building is of great importance. 6.2. Employment Structure and Skill Requirement Analysis

The air cargo segment is one of the most critical segments in terms of its overall role in the logistic value chain and the value it represents (with the various categories of cargo). Air cargo represents about 10% of the airline industry’s revenues. As 35% of the value of goods traded internationally is transported by air, air cargo is an indicator of global economic health. Consumer and business

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 134

Final Report demand for goods and services inevitably translates into higher demand for transport and logistics services38. This essentially serves as the key driver for the air cargo segment. 6.2.1. Air cargo analysis

The air cargo analysis begins with charting the typical functional structure and dis-aggregating it into core and support functions. This will be followed by the in-detail analysis of the core functions. The core functions are ground operations, security, flight operations and engineering. The latter functions are typically part of airline operations and will be mapped in detail in the airline and MRO segments. The heart of air cargo i.e. operations and security will be analyzed in detail.

Figure 49: Air Cargo – functional structure

Air Cargo

Core functions Support functions

HR and admin Ground Operations

Finance Security QC Flight operations* IT Engineering* Purchase

Marketing

Planning

Source: Industry interaction. * is covered as part of airlines and MRO segments in detail The functional distribution of the human resource is depicted below. As expected, the bulk of the HR is in the ground operations followed by the security. These two functions are the nodal functions in cargo operations.

38 Source: MoCA – Air cargo logistics in India

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 135

Final Report

Figure 50: Air Cargo – HR distribution across functions

Finance QC IT Purchase 3% Marketing 1% 3% 2% 1% HR and admin 2%

Engineering 15% Ground operations 39%

Flight ops 10%

Security 24%

Source: Industry interactions, IMaCS analysis The key functions of ground operations and security will be analyzed in detail to map the key job roles and the skill paucities. 6.2.1.1. Ground operations

Ground operations in air cargo typically follow a series of fixed steps that all aim towards loading the aircraft optimally with safety. The key activities in ground operations are:

Figure 51: Air Cargo – key functions

Cargo Cargo acceptance Load planning documentation

Loading ULT management Palletizing Container loading process

Cabin loading

Ground support to aid overall operations

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 136

Final Report

Table 39: Air cargo operations – sub functions brief

Sub function Brief Key job roles associated Acceptance of cargo refers to the incoming → Unloaders cargo being received at the air cargo terminal. → Cargo assistants Cargo acceptance These are screened for security purposes and → Shift in charge assembled at the terminal and sorted to

logical units.

Cargo documentation refers to processing the Cargo → Shift in charge air consignment note and preparing the cargo documentation → Cargo assistants manifest

Load planning is the function that does the load control process allows for the maximization of payload whilst ensuring that → Planners Load planning the aircraft still takes off, flies and lands safely. → Air worthiness manager The outcome of this function leads into the subsequent functions with the aid of the load and trim chart that is prepared

The unit load devices (ULD) have to be tagged, → Shift in charge ULD management assembled and kept ready for loading the → Cargo assistants cargo according to the load and trim

The cargo are palletized in the ULD by evenly distributing the weights and packed optimally to prevent shifting. These will be done in line with the aircraft contours. The palletized ULD → Shift in charge Palletizing and are checked for bulging and then labeled → Cargo assistants loading according to the norms. The ULDs are then → Loaders covered and sealed. This is then loaded in the vehicles for transportation to the aircraft → Shift in charge → Cargo assistants Cabin loading The ULDs are loaded into the aircraft → Loaders → Drivers → Ramp handlers The ground support across this function includes drivers and helpers who aid the overall process. Key skill requirements

Before mapping the skill gaps what needs to be understood about the cargo segment is that though the training does happen through the institutes the industry trains the manpower post their recruitment. These resources are training across common areas. These common areas are mapped below across roles.

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 137

Final Report

Table 40: Key Skill Requirements - Air Cargo (Ground Operations)

Air cargo – ground operations Roles Key expected competency Key skill requirements  Understanding of air cargo industry  Knowledge on different types of cargo  Knowledge on various categories of dangerous goods and their management  Reporting of dangerous goods The listed competencies are protocols typically not available when  Ability to recognize unclassified people are recruited. The dangerous goods organizations train the Loaders  Knowledge on acceptance and personnel across the key Cargo assistants documentation requirements as well as the  Basics on load and trim concept organization specific  Knowledge on palletization processes. The ecosystem for  Knowledge on emergencies and doing the same needs to be incident handling built  ULD management and labeling  Knowledge on safety and security systems like scanning  Knowledge on overall air cargo universe in India  Knowledge on air side safety protocols

 Role and responsibilities of vehicle operators in airside  Hazards of airside driving  accident and incident reporting procedures The drivers also need the Drivers  Rules and procedures for driving ecosystem to be created for on ramps (aprons), stands and skilling appropriately airside roads  Rules and procedures for driving in aircraft maneuvering areas, etc

 Ramp position  Ramp geometry The ramp handlers need  Safety specific training in the ramp Ramp handlers  Ramp fastening handling as well as airside  Basic airport safety safety  Soft skills

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 138

Final Report 6.2.1.2. Security

Air cargo security is of utmost importance in the cargo segment. The cargo typically travels through a wide supply chain before arriving at the terminal and the subsequent loading. Cargo is typically guided by documentation and it is in this case where the object is inanimate, the security operation needs to be proactive to weed out unwanted items. The security function thus ensures that there is safety of both man and material across all the operation areas. The key roles in this function are: → Security manager → Security executives → X-ray staff → Dangerous goods officers Key skill requirements

Security is a function that requires vigilance as well as discipline. For officers to hold positions in security portfolio, they need to complete the basic aviation security management course and to be screeners there is a certified screener course by BCAS. Additionally, there are certain key expected competencies:

Table 41: Key Skill requirements- Air Cargo (Security)

Air cargo – Security Roles Key expected competency Key skill requirements  Basics of aviation security  Dangerous goods security procedures, according to category of goods  Regulatory authorities and the enforcement of air cargo laws Security skill gaps is not  Commonly used cargo and related to a person level gap → Security executives handling terms in security rather, similar to other roles, → X-ray staff  Cargo security risk assessment need to build an ecosystem throughout the supply chain that can churn the → Dangerous goods  appropriately skilled resources officers Air mail security  Improvised Explosive Devices that can be trained on the (IEDs) and concealed weapons organization specific protocols. recognition  Cargo terminal security  Equipment usage like screeners, scanners, etc  Emergency and action protocols

Comprehensive Skill Gap Analysis and Future Roadmap for Skill Development in Civil Aviation Sector 139

Final report 7. Segment- Ground Handling This chapter shall focus on the macro environment and identify key factors that have led to the growth/changes to ground handling segment. Any change in the macro environment scenario in terms of investment flow, change in technology, etc is likely to impact the human resource requirement and the quality of human resource requirement of the sector and study segments. Ground handling segment was analysed from a global and Indian perspective. Building on the segment & sub-segment and functional analysis of the ground handling segment, this chapter also maps the employment structure analysis which outlines the key skill requirements across critical job roles. Functional analysis is the main tool for mapping the key roles and responsibilities of the function; after mapping the overall organisation structure. Functions are thus discrete-ised in the organization structure and the key roles that are required to perform the function are delineated and identified. Across these roles the key skill building requirements are identified. Some of the key aspects that have been mapped as part of this analysis are: Table 42: Key Aspects Key terms used Brief description Function is an activity necessary for achieving the key purpose of the sector, occupation, or an area of work, which can be carried out by a Function person or a group of persons. Functions are identified through functional analysis Sub-functions are sub-activities essential to fulfil for achieving the Sub-function objectives of the function Job role defines a unique set of functions that together form a unique Job role employment opportunity in an organisation

Source: NSDC The above key concepts have been illustrated below:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 140

Final report

The following structure has been adopted for this chapter, which are covered in the subsequent sections, segment-wise:

 Overall typical organization structure  Brief description/objective about the functions  Further detailing on key civil aviation specific function  Typical HR structure across the above function  Outline of critical job roles  The respective skill gaps 7.1. Segment & Sub-Sector Analysis

Ground handling refers to functions performed at the airside and terminal side to prepare for an aircraft to land and take-off from an airport. Various ground handling services at the airport are outlined below:  Ground administration and supervision: o Representation and liaison services with local authorities o Load control, messaging and telecommunications o Handling, storage and administration of unit load devices o Automation/computer system o Any other supervision services before, during or after the flight o Passenger services

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 141

Final report

 Baggage handling  Freight and mail handling  Ramp handling: o Marshalling of aircraft on the ground at arrival and departure o Communication between the aircraft and the air-side supplier of services o Loading and unloading of the aircraft o Provision and operation of appropriate units for engine starting o Moving of aircraft at arrival and departure o Transport, loading on to and unloading from the aircraft of inflight kitchen  Aircraft services comprising: o Fuel and oil handling o Aircraft maintenance o Flight operations and crew administration o Surface transport o Catering services o Cabin services Terminal and airside ground handling activities commence when an airplane lands and is to be made ready for take-off. Most of the activities happen in tandem in order to achieve prescribed service standards, especially, on-time departure and safety. Major ground handling activities at airside include ramp and aircraft service operations such as marshalling the aircraft to parking bay, placing safety equipment and cones, steering the aerobridge or ladder to the door, off-loading passengers from aircraft, cleaning the cabin and toilets, changing the water for drinking and toilets, loading baggage from aircraft, driving and unloading on the designated conveyor, driving fresh baggage from the terminal and loading on the aircraft belly, and driving the push-back unit. Terminal operations involve passenger service for check-in and boarding pass issue as well as baggage handling for weighing and loading on to conveyor belt. Other ground activities involve driving the equipment involved in doing the functions mentioned above to the designated points around the aircraft from equipment parking space. It also involves managing the parking area for equipment and their maintenance; scheduling of equipment and personnel movement as per aircraft movement; and securing requisite permits and concessions. The target is to complete the work on time and with zero incidents. 7.1.1. Global Perspective

The global airport ground handling business is now estimated to be worth over USD 80 billion per annum. The sub-segments in the ground handling sector in decreasing order of market share are listed below  Ramp handling (largest market )  Parking assistance  Aircraft towing  Pushback, provision, and operation of necessary units to start the engine  Safe passenger conveyance  Boarding and de-boarding

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 142

Final report

 Customer service support 7.1.1.1. Growth Trends

Growth of the ground handling segment depends on increase in number of airlines, airports, airport expansions, passenger traffic, cargo traffic, and technology enhancements. With the prospect of improvement in all the above mentioned factors in the future, the ground handling segment is expected to grow significantly. Asia-Pacific and Latin America are expected to show consistent levels of growth. India and China are expected as new growth regions and could provide many opportunities for the aircraft ground handling system market. This is due to their large population, increase in urbanisation, and vast area (leading to extensive domestic traveling). 7.1.2. Indian Perspective

Domestic ground handling services accounts for about 2.5% of operating costs for self-handling by airlines, according to estimates in CAPA report39. Being a proportion of self-operating costs, the distributed overhead expenses are not captured in this share. For third-party handling companies, the costs may be slightly higher because of overheads. Ground handling segment employs about 26,500 people of which 60% work in the 6 metro airports. Labour constitutes the largest share of total operating costs in ground handling. This cost is estimated by CAPA to exceed 60% in the coming years as ‘thousands of staff are brought above minimum wages and are extended statutory benefits such as overtime, leave and provident fund contributions.’ In India, the terminal side operations are typically handled by the domestic airlines themselves. Regulations stipulate that the airside ground handling is conducted by government designated (licensed) third-party agencies at six metro airports and Cochin. As foreign airlines are not allowed to self-handle, they have had to hire third-party ground handlers at all airports. The new (revised draft) National Civil Aviation Policy, 2015, may officially40 allow domestic airlines to undertake self-handling at the airside at all airports, as was done before the 2007 ruling of DGCA which cited security reasons for the curtailment of access to airside. A typical handling company such as AISATS provides ground handling services for categories of activities at the terminal such as passenger handling, baggage handling, load control and flight operations; as well as at airside such as cargo handling, ramp operations and cabin cleaning. AISATS also handles these operations for charter, VIP and diverted flights and provides ‘meet and greet services’ to passengers who require personalised assistance through the airport controls. 7.1.2.1. Impact

CAPA estimates the Indian third-party ground handling market at around USD 200-220 million in 2012-13. With the new policy developments, there is a strong possibility of many more ground- handling operators entering the industry. According to CAPA, ‘New business for third-party handlers

39 Source: CAPA India Ground Handling Report 2014

40 An interim order of the Supreme Court of India allows domestic airlines to carry out self-handling

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 143

Final report could be worth an additional USD 130 million per annum. The size of India's contestable ground handling market could increase to up to USD 350 million almost overnight. With air traffic in India projected to triple over the next 10 years, the report estimates the market to grow to USD 1 billion per annum by 2023, i.e., at a CAGR of 16%. The global ground handling market is estimated at USD 80-100 billion per annum. Delhi is the largest ground handling market for both domestic and international services. The other significant markets are Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Ahmedabad, Guwahati, Pune, Goa, Cochin, Calicut and Trivandrum. The last three are important mainly because of international ground handling services required. According to the CAPA report of 2014, in 2012-13 the relative share of domestic to international handling in India was in the ratio of 28:72. 7.1.2.2. Key Players

Authorised ground handling operators at metro airports include:  Airport operator or its joint venture handling company  Air India or its joint venture handling company  Independent third-party handler appointed through a bidding process The major players include Air India’s joint venture company with SATS of Singapore (AISATS); and several other Indian, international and joint-venture handling companies such as Bhadra, Bird- Worldwide Flight Services, Cambata, Celebi, Menzies and NAS. Air India has divested its own passenger, cargo and ground handling operations into a subsidiary company, Air India Air Transport Services Limited (AIATSL), which provides handling services at 43 domestic and 13 international airports. Table 43: Authorised Ground Handlers at Six Metro Airports Metro Airport Authorised Ground Handlers AISATS Bird – Worldwide Flight Services

Delhi Cambata Aviation Celebi Ground HandlingDelhi Air India Mumbai Cambata Aviation Celebi-NAS Airport Services India Air India

Chennai Bhadra International Cambata Aviation AISATS

Bangalore GlobeGround AISATS

Hyderabad MenziesBobba Ground Handling Air India

Kolkata Bhadra International Source: CAPA At airports other than Delhi and Mumbai, airport operators may award additional concessions as and when the traffic reaches defined thresholds. At Delhi Airport, while AISATS commands 50% market share by flights, Celebi commands about 23%. Indian carriers self-handle and largely deploy their own employees for terminal side roles. However, for most of the labour-intensive handling

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 144

Final report activities which do not involve customer interactions—e.g., baggage handling, check-in porterage and cabin cleaning—they sub-contract to manpower agencies. There are multiple such agencies operating at some airports. According to CAPA, there were up to 40 at one stage in certain cities, although this has since been rationalised to around 11-12 companies. 7.1.2.3. Growth Trends

Because of security concerns at Indian airports, the Bureau of Civil Aviation Security (BCAS) issued a circular making it mandatory for all ground handling service providers to undergo security clearance and background checks of its employees before issuing the airport entry pass. Subsequent to this rule, the Directorate General of Civil Aviation (DGCA) issued a new ground handling regulation in 2007 that restricted the number of service providers as well as self-handling by aircraft operators (excluding the national airline) at six major airports in India. The private airline operators filed a case against the government in 2011 with the Supreme Court of India. Though the court has not pronounced a decision on this yet, it has passed an interim order allowing airlines to self-handle their aircraft even at metro airports. The following provisions under the draft National Civil Aviation Policy, 2015, have the potential to improve the operating margins of ground handling functions either directly or indirectly.

Draft Civil Aviation Policy, 2015: Ground Handling—Key Features Ground Handling Provisions: The Ground Handling Policy of 2010 will be replaced by a new framework given below:  The airport operator will ensure that there will be at least three Ground Handling Agencies (GHA) including Air India’s subsidiary/JV at an airport to ensure fair competition. There will be no upper limit on the number of GHAs at an airport.  Domestic airlines and charter operators will be free to carry out self-handling themselves or through their own subsidiaries or to outsource the same to other airlines or to a GHA.  The ground handling staff will be on the rolls of the airlines or their subsidiaries or the GHA and not of a manpower supplier. Domestic airlines (and their subsidiaries) and GHAs will be permitted to take contract employees on their rolls. Such employment contracts will be for a period of at least one year.  MoCA will encourage consolidation in ground handling through stakeholder consultations, with the objective of bringing in economies of scale and higher efficiency, without compromising on service quality, safety, security and cost to passengers.  MoCA will encourage rationalisation of airport royalties and other additional charges levied on GHAs over and above a reasonable lease rental.  Government will develop performance norms for these agencies in terms of speed of passenger processing and grievance handling. Accordingly, MoCA will develop ‘service delivery modules’ for aviation security, Immigration, Customs, quarantine officers etc., in consultations with respective Ministries/Departments.  Global best practices in IT, passenger check-in, baggage handling, mobile boarding passes, security checking procedures, immigration and customs etc., will be introduced with due security vetting keeping the Indian context in mind.  As per ESMA Act 1968, essential services include ‘...any service connected with the operation or maintenance of aerodromes, or with the operation, repair or maintenance of aircraft.’ The Government will coordinate with State Governments to include the following under ESMA Act 1968: ground handling, catering and aircraft fuelling.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 145

Final report

Draft Civil Aviation Policy, 2015: Ground Handling—Key Features Other Provisions:  It will be clarified that MRO, ground handling, cargo and ATF infrastructure co-located at an airport will also get the benefit of ‘infrastructure’ sector, with benefits under Section 80-IA of Income Tax Act.  MoCA will coordinate with AERA, AAI, airlines, airport operators and stakeholders like cargo, MRO, ground handling, etc to identify ways to bring down airport charges, while abiding with existing concession agreements and contracts.  Operators of future airport projects will not levy airport charges, concession fee and royalties, etc., on MRO, cargo, ground handling, ATF infrastructure other than a reasonable lease rental.  Tariff at all future airports will be calculated on a ‘hybrid till’ basis. 30% of non-aeronautical revenue will be used to cross-subsidise aeronautical charges. In case the tariff in one particular year comes out to be excessive, the airport operator and regulator will explore ways to keep the tariff reasonable, and spread the excess amount over the future.  Air cargo will be accorded ‘infrastructure’ status if co-located with an airport and will be eligible for Sec 80IA benefits.  The Air Cargo Logistics Promotion Board (ACLPB) has been constituted to promote growth in air cargo by way of cost reduction, efficiency improvement and better inter-ministerial coordination. The Board and the industry will submit a detailed action plan after stakeholder consultation, with the objective of reducing dwell time of air cargo from ‘aircraft to truck’ to below 24 hours by 31 December 2016 and to 6 hours by 31 December 2017.  ACLPB’s action plan should ensure a shift to paper-less air-cargo processing by 1 April 2017.  ACLPB will develop Service Delivery Modules for all elements of the air cargo value chain— airlines, airports, terminal operators, Customs House Agents (CHA), freight forwarders, and government agencies like Customs, CISF, quarantine officers etc.  BCAS will continuously review and simplify security procedures for air cargo in light of the changing business dynamics and evolving technology, while ensuring adequate checks and balances.  Advanced Cargo Information (ACI) system will be implemented by 1 April 2016 to facilitate faster processing by Customs, security agencies and terminal operators.  MoCA plans to leverage the untapped trans-shipment opportunity. The ACLPB will propose specific action steps to promote trans-shipment and the same will be monitored by MoCA on a bi-monthly basis.  The space allocated for cargo on the air-side and city side at most Indian airports is inadequate. ACLPB will lay down norms for space allocation for air-cargo for all green-field airports. The action plan for space-augmentation at existing airports will be developed by ACLPB on a case- by-case basis.  ACLPB will promote global good practices like Free-Trade Warehousing Zones (FTWZ), Air Freight Stations, Bonded trucking, dedicated cargo airports etc.  Freighter aircraft suffer from low priority accorded in terms of time slots and parking bays. ACLPB will lay down norms to address the issue.  ACLPB will lay down specific norms and penalties to minimise pilferage, mishandling and damage of cargo.  ACLPB will work with AERA and AAI to ensure that user charges at Indian airports are competitive vis-a-vis competing aviation hubs. In particular for the non-metro airports, the lease and other fixed charges levied by AAI on cargo facility will be kept low so that it does not become an entry barrier.  The government will consider providing incentives for skill development of people employed in the air cargo value chain.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 146

Final report

Draft Civil Aviation Policy, 2015: Ground Handling—Key Features  AAI will be permitted to provide space on 10-year lease to operators of express cargo and freighters who may then develop dedicated infrastructure to improve their operational efficiency.  MoCA will encourage development of cargo-villages near airports.  The government will expedite the commencement of courses by the National Aviation University (NAU).  MoCA will provide full support to the Aerospace and Aviation Sector Skill Council (AASSC) for imparting skills for the growing aerospace and aviation industry in India.  MoCA will facilitate greater involvement of private sector in sponsoring aviation institutions, industrial training and R&D projects.  MoCA and DGCA will undertake strict monitoring of aviation related educational institutions. Institutions not meeting the prescribed standards will invite appropriate action. An analysis of strengths, weaknesses, opportunities and threats of the ground handling industry indicates that the policy changes proposed in the draft National Civil Aviation Policy, 2015, have the potential to make the industry dynamics more favourable. Weaknesses include labour that is mostly trained on the job and hence has limited knowledge of environment of operations and international aviation standards. This affects quality of service standards and has a bearing on safety norms. With the need to build industry-relevant training infrastructure, Ground Handling segment skill building is of great import. 7.2. Employment Structure and Skill Requirement Analysis

Ground handling refers to functions performed at the airside and terminal side to prepare for an aircraft to land and take-off from an airport. Terminal and airside ground handling activity kicks in when an airplane lands and is to be made ready or take-off. Most of the activities happen in tandem in order to achieve prescribed service standards, especially, on-time departure and safety. The functional structure of ground handling categorised as follows:

Figure 52: Ground Handling- Functional Structure

Ground Handling

Ground Passenger Baggage Freight and Ramp Aircraft Administration Services Handling Mail Handling Handling Services and Supervisions

The above functional structure can be divided into three key blocks – airside ground handling, terminal ground handling and other support functions. The same has been represented below:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 147

Final report

Figure 53: Air Cargo – HR distribution across functions

Other functions 21% Airside ground handling 50%

Terminal ground handling 29%

Major ground handling activities at airside includes ramp and aircraft service operations such as marshalling the aircraft to parking bay, placing safety equipment and cones, steering the aerobridge or ladder to the door, off-load passengers from aircraft, cleaning the cabin and toilets, charging the water for drinking and toilets, loading baggage from aircraft, driving and unloading on the designated conveyor, driving fresh baggage from the terminal and loading on the aircraft belly and driving the push-back unit. Terminal operations involve passenger service for check-in and boarding pass issue as well as baggage handling for weighing and loading on to conveyor belt. Other ground activities involve driving the equipment involved in doing the functions mentioned above to the designated points around the aircraft from equipment parking space. It also involves managing the parking area for equipment and their maintenance, scheduling of equipment and personnel movement as per aircraft movement, securing requisite permits and concessions. The target is to complete the work on time and with zero incidents. Air India’s (AISATS+AITSL), Cambata, Çelebi NAS, Bird Worldwide Flight Services (BWFS), Bhadra International, Globe Ground and Çelebi handle the majority of aircraft departures at Indian airports. These ground handling firms employed close to 2400 staff. Of these, around 60% to 70% are ground handlers’ work at the six metro airports. They also make some use of subcontracting agencies however in the case of the authorised ground handlers this represents less than 5% of their total staff deployment. Outsourced activities may involve agencies supplying drivers, loaders/ un-loaders and terminal staff. Table 44: No. of Employees in Designated Ground Handling Firms GHA No. of employees Air India Limited (AISATS + AIATSL) 12,955 Bhadra International India Ltd. 2,926 Bird Worldwide Flight Services 2,554 Cambata Aviation Pvt. Ltd. 2,823 Çelebi Ground Handling Delhi Pvt. Ltd. 1,157 Çelebi–NAS Airport Services India Pvt. Ltd. 1,766 Total 24,171

Sources: EPFO, Celebi-NAS data from Celebi Annual Report 2014, IMaCS analysis.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 148

Final report

Figure 54: Ramp Operations Structure

Duty Manager Equipment Maintenance Technicians & Emergency Handling Supervisor

Janitorial and Drivers Handlers and Loaders Cabin/utilities replenishment staff

Source: IMaCS Survey

In the ramp operations, typically, there is no vertical career progression below the supervisory level. However, trained personnel move across airlines or overseas. Drivers and janitorial, etc., staff may also move to hospitality and facilities management sectors.

Figure 55: Terminal Operations Structure

City-side operations Station Manager Duty Manager Duty Officer 5-6 years Supervisor Passenger Service Executive Baggage handler

Source: IMaCS Survey

In the terminal or city side operations it takes about five to six years to progress from Passenger Service Executive to Duty Officer. There is also an opportunity to move to other customer facing jobs in retail or hospitality industries.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 149

Final report

Table 45: Key Skill Requirements - Ground Handling Ground Handling Roles Key expected competency Key skill requirements  Principles of check-in, boarding and the passenger flow  Use of the local departure control system or local procedures for manual check-in  Safety and security regulations  Irregularity/incident/accident reporting procedure  Handling of dangerous goods and Need to build the following: prohibited articles 1. Basics on airline operation  Local procedures for determining 2. IT skills baggage weights 3. Safety and security norms Passenger Service -  Transmittal of passenger/baggage data knowledge Customer Handling to the load control department 4. Soft skills  Basics on seating conditions for infants 5. Grooming and persons with reduced 6. Language mobility(PRM)  Regulations for carriage of animals (PETC and AVIH)  Passenger embarkation/disembarkation procedure  Passenger/baggage reconciliation  Handling of passengers with reduced mobility (PRM)  Safety and security regulations  Irregularity/incident/accident reporting procedure 1. Organisation procedure Passenger Service -  Handling of dangerous goods and w.r.t lost and found Lost and Found Service prohibited articles 2. Complaint handling  Use of world tracer and manual tracing procedure

 General weight and balance proficiency and awareness  Aircraft structural load limitations  Load planning  Load sheet (manual and DCS, if 1. Aircraft specific load applicable) procedures Operations and Ramp  Balance tables/charts 2. Safety and Security Handling  Loading instruction/report 3. DGR regulations  Load messages 4. Numerical skills  Dangerous goods regulations  Other special loads  Aircraft handling and loading  Handling coordination (ramp, cargo,

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 150

Final report

Ground Handling Roles Key expected competency Key skill requirements passenger service, crew service)  Standard operational messages and general communication  Airside safety and security regulations  Irregularity/incident/accident reporting procedure  Handling of dangerous goods and prohibited articles  Manual handling of load  Safety during aircraft fuelling  Principles of aircraft loading  Handling of loads required special 1. The process related to attention aircraft handling and  Loading incompatibilities loading Aircraft Handling and  Consequences of load damage and 2. Use of equipments Loading spillage 3. Safety and security related  Positioning and operation of loading to aircraft handling and and servicing equipment loading  Notification of commander of load being carried  Passenger embarkation/disembarkation procedures  Standards of aircraft cleaning, lavatory and fresh water servicing  Aircraft movement operations using internationally accepted signs  Safety and security culture  Company safety policy and program  Airport airside, safety and security regulations and employee 1. Human factors training responsibilities 2. communication skills  Human factors: Motivation, attitude Airside Safety and 3. Appropriate regulations and team work, human behaviour, Security (DGCA, BCAS, etc.) and communication skills safe operating practices  Appropriate regulations (DGCA, BCAS,

etc.) and safe operating practices  Emergency procedures, dangerous goods and international standards to be followed

Source: Hamburg International Ground Operations Manual, IMaCS Analysis, Discussions with Stakeholders Ground handling is not seen as a career opportunity in India today. A licensed ground handling agency typically hires graduates through a process of advertisements, background checks, candidate profiling, DGR and screener certification and functional training for multiple carriers and use of computers and equipment. Good command over English is important for terminal side operations. Ability to work under harsh weather conditions for long durations and heavy weight

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 151

Final report lifting up to a certain capacity as well as mental alacrity are important attributed for ground personnel for ramp and aircraft service operations. As mentioned above, the first 3 months of in-house training involves DGR and screener certification as well as functional training for multiple carriers and use of computers and equipment. Soft skills’ training is provided after 3 months of hiring for about 3 days. This training is on communication, grooming, situation handling, airline procedures and use of common sense. Total training is for about 8 months. In future, training modules must include in-flight training and simulations. Barcoding is an upcoming area of usage in different areas of ground handling. RFID has reduced handling issues. Self-service and baggage drop are resulting in more efficient terminal operations. Across India, there are several institutes that offer training courses for terminal side operations as well as airside operations up to supervisory level. Load management, passenger services, lost and found, and ramp supervision are common training courses. However, most of the training for below supervisory level is undertaken in-house by the GHAs. However, with increase in aircraft movement likely provide impetus to increased demand for ground handling manpower. This would require structured and standardised curriculum and training for ground staff below supervisory level as well, keeping in mind the targets of achieving international quality standards of service and zero incidents. 7.2.1. Summary – Critical Job Roles

All job roles in ground handling associated with airside operations are important and critical.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 152

Final report 8. Qualitative Supply analysis This chapter outlines the analysis of the supply i.e. the training institute ecosystem that provides the human resources across the study segments. As outlined prior, the need for qualified and appropriately skilled human resource is a must in any sector. This assumes greater gravitas in the civil sector with its tremendous growth potential and importance to the overall economy of the nation. The key current training set up for the aviation sector occurs through the following government bodies:  DGCA approved training centres across India (57 centres)41  National Institute of Aviation Management and Research  Civil Aviation Training College ,Allahabad and Hyderabad airport  Aero Club of India – for pilots and engineers / technicians  Indira Gandhi Rashtriya Uran Academy  IATA helmed training programmes  Airports Authority of India helmed training programmes  Bureau of Civil Aviation Security helmed training programmes, etc In addition to the above there are several private players who offer courses across the various sectors of civil aviation. Currently there are 42 functional pilot training institutes (of which only 17 are operational) and 77 AME training institutes along with a large number of Airhostess training institutes. However, the current set up of training institutes as well as the quality of training imparted has resulted in several training challenges that have lead to gaps which are both qualitative as well as quantitative. This chapter will analyse the supply pool across the following dimensions:

 The typical training value chain  Outline some of the in-service training modules across the study segments  Capture the overall key findings from the supply analysis

41 As of 21.08.2014 Source: DGCA

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 153

Final report 8.1. Civil aviation training value chain analysis

This segment focussed on the typical training value chain in the civil aviation segment. The skilling value chain in India typically has broad blocks that encompass various steps from trainee mobilization to the end state of placement.

Figure 56: Typical skilling value chain in India

Mobilization of Assessment Certification trainees

Selection of Course delivery Placement trainees

Curriculum Training of development trainers

Content development, upd Course design - ation and infrastructure accreditation

Across the study segments the key blocks in the training value chain have been analysed to map the current practice. Table 46: Training value chain analysis Value chain step Airport Airline MRO Cargo Typically across the segments the following ways are used to mobilize students:  Websites are created to spread awareness Mobilization of  Before the courses begin, ads are run in regional as well national trainees newspapers with schedule  Some institutes also cater to industry requests, directly Students are Students are typically selected typically selected MRO institutes based on their based on their Students are look for 12th pass qualification and qualification and typically selected / graduates who basic aptitude. basic aptitude. In Selection based on their have aptitude as In the case of the case of qualification and well basic airlines the dangerous goods, basic aptitude. technical institute looks for they have to be knowledge language, physical atleast graduate appearance with language

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 154

Final report

Value chain step Airport Airline MRO Cargo (cabin crew) and skills overall interpersonal skills Curriculum developed in house in-line with requirements. Curriculum

developed in line Curriculum Curriculum For the ANS with regulator developed in line developed in line Curriculum courses, the guidelines and with regulator with regulator curriculum is in industry guidelines guidelines line with CATC expectations requirements and are hosted at regional training centers Content In house development in line with the curriculum Course design - Infrastructure designed in-house based on the duration of course and the batch infrastructure strength Typically trainers with prior experience are recruited. Training of trainer Also industry personnel are also invited for guest modules Course delivery planning done internally considering the duration of course and Course delivery the batch strength In house development of assessment tools and the assessment is also Assessment conducted internally The security related courses The security Certification for are from BCAS related courses ANS is from CATC are from BCAS Other airline MRO courses The security endemic courses typically require Dangerous goods related courses are self certified DGCA related courses Certification are from BCAS certification are certified by A few institutes referred to as the DGCA Other airport (Frankfinn, ‘type-license’ endemic courses Oyster*) are Other airline are self certified NSDC partners endemic courses and are certified are self certified by NSDC There is no formal placement policy/process in majority of institutes. If there are requests from the industry the candidates are referred. There is also Placement informal referral practice for placement. Post placement also there is no formal feedback mechanism which is used to analyse the points of betterment * Some institutes are in diligence stage in NSDC

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 155

Final report 8.2. In-service training analysis

This segment outlines some of the in-service training practices in the study segments. In service training refers to the refresher course modules that are offered to the employees in the course of their employment. In an ideal scenario, the number of in service training completed leads to the relevant career progression. This is because the in-service training leads to the job role holder accumulating and augmenting the skill level which leads to career progression. This segment has mapped some of the key areas of in-service training in the study segments. This is based on the inputs that have been shared by the organization the IMaCS team has interfaced with as part of the primary survey. 8.2.1. Airport segment

The airport segment pools together a mixed bag of skill sets. The in-service training offered is a reflection of this. Of course, the in-service training modules vary significantly across the private and AAI airports. This section will map some of the in-service training modules for both AAI and private airports. 8.2.1.1. AAI in-service training

AAI in-service training is offered through:

 Indian Aviation Academy  CATC and regional training centres (for the ANS roles)  Fire Service Training Centres (Firemen)  In respective airports Some of the key course modules have been highlighted below:

Table 47: In-service training – AAI

Location Role (s) Select Training courses Airport director Induction course for APD Airport Director, Executives of Planning and Environmental Concerns in Aviation Engineering disciplines Executives from Civil / Electrical /Structure/Commercial/Cargo/Law/Personnel Contract Law, Arbitration & /Electronics discipline [ AM / M / SM / DGM Conciliation Act /Jt.GM / GM] Indian Staff & Officers from Cargo/Security & Fire Aviation IATA – dangerous goods discipline academy* Executive of Planning and Engineering Airport master planning discipline Executives from Civil/Structure Engineering Rigid Pavement Design & PCN disciplines [AM to GM] Evaluation Electronics systems in Terminal JET/AM(Electronics/Communication/IT) Building for JET/AM (Electronics/Communications/IT) Fire Training Leading fireman / technical assistant Fireman-ship course

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 156

Final report

Location Role (s) Select Training courses Institute@ Superintendant or fire inspector Junior fire officers course Senior Superintendant Officers course Senior fire officer / executive Airport Fire Safety Management  IT skills Short burst courses for job roles that require At airports  e-office refresher training  refresher courses in domain

 Ab-initio training CATC and  Radar course Regional CNS and ATC personnel  CNS management training  Data and networking centers  Equipment security, etc

* Other general management courses also offered. @ The complete list of courses available with AAI. Source: AAI and discussions 8.2.1.2. Private airports in-service training

The private airport operators namely GVK and GMR have training that span across several spheres for their human resources. Some of the key training areas are:

 Cargo operation – including different categories of dangerous goods and their management  Occupational health and safety  Security Awareness Training  Basic AVSEC Course  Inline Recertification Course and Test  Basic AVSEC Refresher  Safety training  IT training  Explosive handling and detection  Environment management training  Soft skills training  Other technical and non-technical training for employees related to domain In fact, GVK – CSIA has trained about 1,100 hours of training in 2013-1442. Airline segment

The airline segment conducts training for all the recruited human resources across the functions. These trainings comprise of both domain as well as organization specific processes. Some of the key areas of training along with the duration are indicated below43:  Safety Emergency Procedures Trainings – DGCA approved trainings  Ab-Initio Training – 101 days

42 Source: GVK sustainability report 43 Source: Discussions with airlines

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 157

Final report

 Recurrent Training – 5 days  Dangerous Goods Regulation Trainings – DGCA approved trainings  Marshaling Training – DGCA approved training – 3days  Aviation Security – DGCA & BCAS approved  Cabin crew training – 90 days  Screener training – 5 days  Airport control training – 5 days  Reservation protocols training – 15 days  Cargo basics – 3 days  Ground services training – 12 days Across these trainings, even though the human resources have undergone the relevant training, they still have to be trained additionally as the industry feedback indicates that the training needs to be more robust to echo industry requirements. Cargo segment

The cargo segment related training is driven by the industry. The training spans across the spectrum from the basics of air cargo to the various categories of dangerous goods, the industry skills / re-skills the personnel. In fact, the industry has devised a ‘cargo awareness’ course for a day’s duration that aims to educate the cargo segment personnel on all the basics of air cargo. Some of the other key areas of training include:

 Air cargo security  Dangerous goods – various categories  Documentation  Basics of load and trim  Palletization basics  Security aspects in air cargo  Basics of x-ray  Basic aviation security Most of the above training is for duration of 2 or 3 days. Similar to airlines segment, even though the human resources have undergone the relevant training, they still have to be trained additionally as the industry feedback indicates that the training needs to be more robust to echo industry requirements. MRO segment

The MRO segment is a segment that requires intense skill building across three key roles:  Aircraft maintenance engineers  Technicians  Workshop personnel Though the AMEs typically go through the 3 years course and hold the type license that needs to be renewed every 2 years, the industry still does a lot of in-house training for the above three roles.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 158

Final report

Most of the said training is on-the-job (OJT) and it typically involves the personnel being given orientation training which takes on an average 6 months to 1 year. Thus, even if the AME hold the license for the industry to have an adequately skilled engineer who can manage a job there is a definite lead time. Ground handling

For ground handling there are dedicated training programs which are administered as on-the-job modules for the personnel as there is not many specific institute that offers these courses. The OJT modules span across the key functional areas.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 159

Final report 8.2.1.3. Training infrastructure requirements

This segment profiles the key training infrastructure required across the study segments. The training infrastructure profiled here indicates the key requisite infrastructure (which is apart from the traditional requirements) in terms of area required, curriculum and content, faculty, training infrastructure, assessment and certification. The segment has been presented in the following manner: - Mapping the existing training infrastructure in terms of training area, curriculum and content, faculty, training infrastructure, assessment, certification and placements. This summarises the key findings on the existing training practices - Recommending the required infrastructure which outlines what are the key changes that need to be effected in terms of training area, curriculum and content, faculty, training infrastructure, assessment, certification and placements. These take into account the existing infrastructure and what are the improvements required on what is existing - Remarks which capture the key qualitative inputs for the segments in the training context

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 160

Final report

Airlines

Airlines training infrastructure should aim to create the environment in which various functions work in airlines. The existing infrastructure compared to required infrastructure is profiled below. The remarks highlight the key aspect related to infrastructure in this segment based on key stakeholder and training institutions discussions44. Existing infrastructure Required infrastructure Remarks Target trainee segment: Area required: Cabin crew Designated area is required for practical training for enhanced hands-on exposure. This area may be Area available: more than 2,000 sq. ft. depending on lab plan The airline related training now Minimum of 1,000 sq. ft to 1,200 sq. ft office outlay. Also, dedicated e-learning/virtual learning focuses to a large extent on cabin space, (i.e.) Front office with telephone, area may be created going forward. crew development. There institutes computers, Scanner, Xerox machine, Fax and High aplenty in India for the same. The key speed Net connection. Curriculum and content: challenge here is ensuring quality of Minimum 2 class rooms – class room with There is need for unified curriculum and content. training. Once national standards are minimum of 25-30 seats with white board and These have to be developed in line with national developed, the curriculum and projector. standards (when they will be defined by SSCs) training will be in line with the same. Also, counseling room and small library room, Also, this segment has several other storage place for study materials etc. Faculty: skill sets apart from cabin crew and Small Grooming room (50-100 sq. ft) for Airhostess The faculty to student ratio needs to be defined for ticketing like revenue management, Trainees grooming purpose only. this segment. Ideally, 1:20 ratio can be adopted for airline marketing (additional to pilot enhanced practical exposure. Based on the training). Curriculum and content: incremental human resources required, about These niche courses may also be Content developed in line with individual training 11,500 faculty needs to be available in the next 20 developed in centers of excellence institute requirements based on guidelines (where years available) Training infrastructure: Faculty: In addition to the available infrastructure in

44 Training institutes interfaced with include PTC Aviation Academy, Aptech Aviation Academy, Chavara School of Tourism Studies, Speedwings Academy for Aviation Services, School of Airlines and Travel Management

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 161

Final report

Existing infrastructure Required infrastructure Remarks Depending on the student enrollment, faculty are institutes currently, some of the key other hired for the courses either from industry or infrastructures that may be developed are: groomed in-house  Mock areas that re-create cabins of various types of flights like Boeing, Airbus, Training infrastructure: Bombardier, etc Usually 3-step method of theory, classroom  Aids and equipment used when creating practical and practical exercises is adopted by scenario of emergency – e.g. swimming institutes. Technologies related to aviation, pool for water procedures passenger management, load & trim, etc are  Educational windows (for display) with taught in such a way that students can easily equipments which have to be used remember what to do when faced with a similar according to processes situation on the job.  Rooms equipped with mannequins for Also, communication skills, personality administering first aids development, in-flight services, safety & security,  Training areas with aircraft slides details and presentation skills are also taught to students.  Fire fighting room for exercises Scenario based learning with business class seats,  Multimedia labs for taking blended /e- economy seats and serve tables, wet runs with real learning modules food and soft drinks to practice in flight service procedures are also given to students Some of the equipments that can be utilized in training are highlighted below45: Assessment and certification: Institutes carry out in-house assessments and Ditching and evaluation equipment certification  Ditching Pool

 Wide Body Duel Channel Slide Placement infrastructure: This is in place in some institutes with placement  Narrow Body Single Channel Slide rooms.  Man Life Raft of various dimensions  Life Raft Survival Kits

45 Source: Pan Am International Flight Academy

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 162

Final report

Existing infrastructure Required infrastructure Remarks Fire and smoke training  In-Door Fire Pit  Out-Door Fire Pit  Personal Breathing Equipment (PBE)  Halon Fire Extinguishers  Water Fire Extinguishers  Cabin Smoke Simulator Miscellaneous Emergency Equipment  Cabin Safety/Emergency Classrooms  Deliberator Trainer  CPR Training Equipment  Self Defense Striking Dummy  Flex Cuffs  First Aid Kits  Cabin Safety Peg Boards  Emergency equipment handling

Assessment and certification: These need to be in line with the national standards and to be certified by SSC. The institutes need to affiliate themselves to the SSC for the same.

Placement infrastructure: Dedicated infrastructure to link placement data to a dynamic LMIS Source: Based on interaction with training institutes and industry feedback. Some training equipment highlighted referred from airlines

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 163

Final report

MRO

MRO segment is a key segment where infrastructure is required to create the AME and the technicians. Of course, these skilled personnel may also migrate to the airlines to work in the engineering function. The existing infrastructure compared to required infrastructure is profiled below. The remarks highlight the key aspect related to infrastructure in this segment based on key stakeholder and training institutions discussions46.

Existing infrastructure Required infrastructure Remarks Target trainee segment: Area required: AME and technicians The practical workshop area needs to be defined to accommodate all labs and workshops to enhance Area available: the hands-on component. For theory sessions from about 15,000 square feet The training infrastructure is well of area available. Curriculum and content: defined with the DGCA rules. The Practical workshops are separately available with There is need for unified curriculum and content. thrust must be towards enhanced the area varying from 30,000 sq ft onwards. The These have to be developed in line with national implementation mechanisms and extent of area available varies based on institute standards (when they will be defined by SSCs) practical exposure. Also, robust and student strength. apprenticeship system in this Faculty: segment may be explored so that OJT Curriculum and content: Faculty component has been defined adequately by gets recognized. The curriculum in line with DGCA Civil Aviation DGCA. The ratio of faculty to student maybe re- Also, the MRO training market Requirements Series ‘E’, PART VIII. Content is looked at to become 1:20 to enhance the practical currently experiences low return on developed in house by institutes in line with the exposure. Based on the incremental human investment and the same must be curriculum. resources required, about 1,350 faculty needs to be taken cognizance of. available in the next 20 years Faculty: The instructors are employed as per the DGCA Training infrastructure: requirements The defined infrastructure is in line with course requirements. However, the following additional

46 Training institutes interfaced with include Hindustan College, School of Aeronautics, Nehru College of Aeronautics and Applied Sciences, Alpine Institute of Aeronautics, Academy of Carver Aviation, Utkal Aerospace and Engineering, Centre for Civil Aviation Training, Park School of Aeronautical Sciences

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 164

Final report

Existing infrastructure Required infrastructure Remarks Some key qualifications of the trainers are: infrastructure may also be explored:  Basic license (BAMEL) in any category  Degree in Engineering in Aeronautical/  Simulators modeled on aircraft types Mechanical/ Electrical/ Electronics/  Avionics repair labs Instruments engineering, or Diploma in  Electrical repair labs any of the above disciplines, or Bachelor of  Interiors refurbishment labs Science with Physics, Chemistry and Math/  Composites component repair labs Bachelor of Science (Electronics)  Nacelles Repair labs  One year practical/instructional  Aircraft seats refurbishment labs experience for holders of Engineering  NDT Facilities degree or BAMEL, and three years  Ground Support Equipment Repair labs practical/instructional experience in  Multimedia labs for taking blended /e- aviation industry for others. learning modules  Instructors assigned to teach paper I (Air  Other labs depending on requirements Law, Airworthiness Requirements & Human Performance) should have passed In this segment also the airline manufacturers also paper I of AME license examination. offer training. Some of the key infrastructures that  Instructors teaching Paper-III subjects these entities leverage for offering training are47: should have passed paper-III of the  Utilising aircraft troubleshooting tools relevant category or have adequate  Special tooling and test equipment used maintenance experience in the relevant with the airplane category.  Simulators

 E-learning environments The overall ratio of whole-time instructors to students shall not be more than1:30 per subject class. An instructor may teach maximum of two Assessment and certification: subjects. These need to be in line with the national standards and guidelines issued by DGCA and the SSC. DGCA to

47 Source: Boeing

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 165

Final report

Existing infrastructure Required infrastructure Remarks Training infrastructure: continue to issue the licenses As outlined by DGCA, Requirement includes aero planes, helicopters, engines, avionics instruments, Placement infrastructure: test equipment, various workshop facilities. Some Dedicated infrastructure to link placement data to a of the key requirements are (illustratively): dynamic LMIS

 Metalwork And Sheet Metal Work With Hand Tools  Metalwork with machine tools  Airframe/helicopter familiarization  Specialist Activities: Wood And Fabric, Welding, And  Composites  Various workshops like fibre glass, reinforced plastic, etc  Engine and propeller training infrastructure  Avionics facilities, etc

Assessment and certification: AME license exams are conducted in line with DGCA schedule and license is given by the same

Placement infrastructure: This is in place in few institutes with placement rooms. Source: Based on interaction with training institutes and industry feedback. DGCA regulation Some international MRO institutes snapshot have been highlighted below:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 166

Final report

MRO center of excellence infrastructure snapshot – ZETRO Centre of Excellence (ZCOE) in Malaysia International Aerospace Centre (MIAC) ZETRO Centre of Excellence (ZCOE) encompasses a Central Repair Facility (CRF), Military and Commercial Avionics Laboratories, Ground Electronics and Calibration Laboratories, Mechanical Workshop and a Helicopter MRO facility.

Its Central Repair Facility is equipped with the state-of-the-art test equipment with the capability to diagnose and troubleshoot a wide array of Line Replaceable Units giving extensive capabilities with almost limitless areas when it can be applied, including Air Defence Radar and Missile Systems for the Military and Air Traffic Control Radar Systems for both civil and military applications. Sri Lankan Aviation College The practical training opportunity offered includes:  Base (Hanger) Maintenance  Line Maintenance  Aircraft Structures Workshop  Engine Module Change Facility  Paint and Composite Workshop  Wheels and Brakes Workshop  Accessories Workshop  Fabric and Seat Workshop  Avionic Workshop  Safety Equipment Workshop

Source: Secondary research

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 167

Final report

Cargo

Cargo requires infrastructure to aid scenario based learning. Some of the key areas where the relevant infrastructure creation will aid in creation of workforce with high employability quotient need to be explored. The existing infrastructure compared to required infrastructure is profiled below. The remarks highlight the key aspect related to infrastructure in this segment based on key stakeholder and training institutions discussions48.

Existing infrastructure Required infrastructure Remarks Target trainee segment: Area required: Cargo operation and dangerous goods Currently, there are designated theory areas alone. In addition to the theory areas, there Area available: needs to be designated practical training area For theory sessions from about 2,000 sq ft area available. which can simulate air cargo warehouse with all Designated practical areas are utilised mainly for loading, its processes. These areas can be in line with unloading, load and trim activities. the typical air cargo warehouses ranging from 10,000-20,000 sq ft The training ecosystem for cargo Curriculum and content: needs to be evolved in the country Content developed in line with individual training institute Curriculum and content: in line with international requirements based on regulations (where available like IATA, There is need for unified curriculum and standards and service level DGCA, etc) content. agreements These have to be developed in line with Faculty: national standards (when they will be defined Depending on the student enrollment, faculty are hired for the by SSCs) courses either from industry or groomed in-house Faculty: Training infrastructure: Faculty need to be developed in line with The institutes are equipped with classrooms, projectors, teaching industry experience and qualifications. This may aids, reference areas, etc be done by the SSC. The ratio of faculty to student maybe 1:25 to enhance hands-on

48 Training institutes interfaced with include Bird Academy, GP Institute for Dangerous Goods, PTC Aviation Academy, Aptech Aviation Academy, Indian Aviation Academy, Mumbai International Airport Limited

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 168

Final report

Existing infrastructure Required infrastructure Remarks Assessment and certification: component. Based on the incremental human Institutes carry out in-house assessments in line with guidelines. resources required, about 5,500 faculty needs Certifications given by institutes/guideline developer. to be available in the next 20 years

Placement infrastructure: This is in place in some institutes with placement rooms. Training infrastructure: In addition to the theory infrastructure the At present, the industry trains the employees internally with following may be explored: scenario based training to effectively enhance the employability in  Cargo Hold replicas most cases  Pallet replicas  Documentation procedures – scenarios  Scanner models  Loading and unloading mock area creation  Load and trim – aids for scenario based learning  DG monitoring demos with various categories and complexities  Special cargo handling scenarios like live animals

Assessment and certification: These need to be in line with the national standards and to be certified by SSC. The institutes need to affiliate themselves to the SSC for the same.

Placement infrastructure: Dedicated infrastructure to link placement data to a dynamic LMIS Source: Based on interaction with training institutes and industry feedback

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 169

Final report

Airport and ground handling

Airport and ground handling segment requires skilled personnel who should have the ability to manage the various processes as well manage the customer interface (where applicable). The airport training infrastructure that is required should aim to create personnel who can effectively carry out all facets of operation with minimal orientation. Thus, the orientation should only serve the purpose of aligning the personnel to the individual airport process-level requirements. The infrastructure required to achieve this level of employability should echo how an airport typically functions. This could be a combination of simulation rooms as well as practical exposure to several processes like security, trolley management, floor management, customer service, etc. For ground handling, similar to airports, the infrastructure should enable workforce to function effectively with compliance to several process level indicators. This could be a combination of simulation rooms as well as practical exposure to several processes like ramp handling, baggage management, cleaning and hygiene, etc. The existing infrastructure compared to required infrastructure is profiled below. The remarks highlight the key aspect related to infrastructure in this segment based on key stakeholder and training institutions discussions considering the fact that the current training ecosystems for these segments offer limited practical, hands-on exposure49.

Existing infrastructure Required infrastructure Remarks Target trainee segment: Area required: Airport and ground handling – Loader, security, ramp handler, In addition to the theory areas, there needs to Airport and ground handling passenger service personnel, etc be designated practical training area which can personnel need dedicated training simulate airport processes like cargo ecosystem with the right Area available: movement, passenger handling, ramp handling, infrastructure to ensure For theory sessions from about 2,000 sq ft area available. tarmac driving, etc. This training area may be adequately skilled resources. Designated practical areas are utilised mainly for loading, situated within airports as all the processes These need to be in line with unloading, load and trim activities, ramp handling, security might be difficult to re-create solely for training national standards. procedures demo, etc purpose

49 Training institutes interfaced with Indian Aviation Academy, Hope Institute of Hospitality Management, PTC Aviation Academy, Aptech Aviation Academy

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 170

Final report

Existing infrastructure Required infrastructure Remarks Curriculum and content: Curriculum and content: Content developed in line with individual training institute There is need for unified curriculum and requirements based on regulations (where available like IATA, content. DGCA, etc) These have to be developed in line with national standards (when they will be defined Faculty: by SSCs) Depending on the student enrollment, faculty are hired for the courses either from industry or groomed in-house Faculty: Faculty need to be developed in line with Training infrastructure: industry experience and qualifications. This may The institutes are equipped with classrooms, projectors, teaching be done by the SSC. The ratio of faculty to aids, reference areas, etc student maybe 1:25 to enhance hands-on component. Based on the incremental human Assessment and certification: resources required, about 12,700 faculty needs Institutes carry out in-house assessments in line with guidelines. to be available in the next 20 years Certifications given by institutes/guideline developer. Training infrastructure: Placement infrastructure: In addition to the theory infrastructure the This is in place in few institutes with placement rooms. following may be explored:

 Passenger movement area scenarios  Ramp for demos and usage  Radio communication usage  Check-in aids and scenarios  Cargo loading ramps usage  Cargo Hold replicas  Pallet replicas  Documentation procedures – scenarios  Scanner models  Passenger handling scenarios

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 171

Final report

Existing infrastructure Required infrastructure Remarks  Passenger management systems

Assessment and certification: These need to be in line with the national standards and to be certified by SSC. The institutes need to affiliate themselves to the SSC for the same.

Placement infrastructure: Dedicated infrastructure to link placement data to a dynamic LMIS Source: Based on interaction with training institutes and industry feedback

Airport training course offered by GMR Aviation Academy highlighted below: GMR Aviation Academy Target - Fresh Graduates, Newly appointed airport staff or aviation staff working with various agencies at the airport or Individuals who would like to expand their knowledge in airport operations

Certification in airport operation course covers following topics: - History of Aviation - IATA & ACI - The Regulatory Framework in India - Basics of Aerodynamics & Type of Aircrafts - Basics of Air Navigation - Basics Aviation Meterology - Air Traffic Management and Communication Navigation & Surveillance - Radio Telephony Procedures - Passenger Terminal Building - Check-In Procedures-Domestic & General

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 172

Final report

GMR Aviation Academy - Travel Documents – International - Departure Procedure and Boarding - Immigration and Customs functions - Airside Safety Management - Safety on airport ramp - International standards and Recommended Practices – SECURITY - International Standards And Recommended Practices-Environmental protection - Cargo Operations - Airport Economics

6 month duration with 2 months theory and 4 months OJT in Hyderabad or Delhi airports

Source: GMR Aviation Academy

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 173

Final report

Key findings from supply analysis

The key purpose of the existence of the supply infrastructure is to provide robust and industry specific training for the human resources. Though there are a network of institutes which skill people for the segments, the industry also invests time, money and resources for internal training. Often, this industry training also needs to cover the most basic aspects. Some of the key findings from the supply analysis are indicated below, which highlights the key challenges:

Challenges  High cost of training  Unable to attract good quality of trainees  Onus on the industry to ensure that the resources are skilled  The courses across segments not able to reflect the industry requirements in a majority of areas, which leads to re-skilling  Inadequate standardisation of the courses  The assessment practices that need a fair bit of improvement where the skill of the individual needs to be assessed  Insufficient practical / hands-on component across key areas  The skilling system by itself that needs revamp to reflect the changing market skill requirements  Infrastructure planning and monitoring

These above set the context for the subsequent chapter on recommendations (Chapter 7) which are outlined to bridge the challenges and build an ecosystem that can provide industry-ready workforce.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 174

Final report 9. Forecasting of Human Resources Requirement This chapter outlines the forecasting of the Human Resources Requirement in all five segments; Airport, Airlines, Cargo, MRO and Ground Handling for the next 20 years as outlined below:-

 Overview  Approach and Methodology  Model  Forecasted Results 9.1. Overview

As outlined prior, the aviation industry of India is showing an upward trajectory and according to DGCA’s statistics50, India’s passenger traffic has grown at a 9-year CAGR of about 11% up to March 2015. While domestic passenger traffic has grown at over 12%, international traffic has increased at about 9.5% annually. The industry is expected to maintain the momentum as the outlook for the Indian has been positive owing to good Indian GDP growth of 6.5%, increase in the middle class population and decrease in global oil prices. The growth in the industry will lead to a significant requirement for skilled human resources. The human resource requirement for the next 20 years will depend on the following demand numbers. A robust forecast model was developed for the below categories of traffic for two scenarios; Business as usual and Optimistic scenario for short (2020), medium (2025) and long term (2035).  Domestic Passenger Traffic  International Passenger Traffic  Domestic Freight Traffic  International Freight traffic  Aircraft movements- Domestic  Aircraft movements- International The approach and methodology followed for forecasting the demand and human resource numbers is detailed in the following section 9.2. Approach and Methodology

The approach for this forecasting was across five phases as outlined below: Figure 57: Forecast Approach

Phase 2: Model Phase 3: Model Phase 1: Data inputs- Phase 4: Human Construction, forec Collection paramters Resource Estimation asting validation selection

50 Source: Handbook on Civil Aviation Statistics, DGCA, 2014-15

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 175

Final report 9.2.1. Phase 1: Data Collection

The activities carried in the first phase can be listed into three steps  Collation and review of relevant primary and secondary data collection from DGCA, AAI, respective airlines, MRO, cargo and ground handling companies and through literature review. The select list of databases used were the following o Ministry Of Commerce & Industry & AAI, DGCA databases o Airport Council International Database o Airport Statistics : Directorate General of Civil Aviation o Port Statistics – IPA Databases o CMIE Publication o India Stat.com o IBEF – IMaCS State Reports o Other international and regional data available from MoCA, IATA, ICAO, APAI, AERA, ACI websites and publications.  Identification of the data insufficiencies and bridging the same through validated assumptions  Defined the list of forecasting variables. We have identified the passenger traffic, cargo traffic and aircraft movements as the variables to be forecasted. 9.2.2. Phase II- Demand forecast Model Inputs- parameter selection

Once the list of forecasting variables is defined, the following activities were performed to decide on the parameters affecting the variables

 Choosing universal set of casual factors through literature review.  Constructed Qualitative variables index  Shortlisted predictive parameters  Finalization of requisite model input parameters for each variable vide suitable Data Reduction Methods 9.2.3. Phase III- Demand Forecast Model construction and Validation

On deciding on the variables and casual factors, the following activities were performed,

 Construction of Model Framework in MS Excel (using and integrating SAS inputs) using Multivariate methods for 2 scenarios; Business as usual and optimistic.  Models Back tested for both Out sample and OOT performance  Models adjusted for CV factor and elasticity moderated  Get the forecasting of variables identified. 9.2.4. Phase IV- Human resource Estimation

Finally, once the variables were forecasted (passenger traffic, cargo traffic and aircraft movements), the human resource need for the forecasted demand is calculated for the 5 segments; Airports, Airlines, Cargo, Ground Handling and MRO. Human resource requirement for some of the key job roles in each segment were estimated.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 176

Final report 9.3. Demand Forecast Model

A statistical model was developed for forecasting the demand and before constructing the model the variables of forecasting and the input parameters of the model that will be used for forecasting the variables had to be finalised. This section details the procedure followed in constructing the model. 9.3.1. Forecasting Variables

As discussed earlier, the forecasting variables were finalized as passenger traffic, cargo traffic, and aircraft movements. Regression model was developed to forecast the traffic. The variables that are forecasted in the model are Domestic Traffic  Domestic passenger traffic to be handled at various airports (embarked)  Domestic passenger traffic to be handled at various airports (disembarked)  Total Domestic passenger traffic handled  Domestic Cargo to be handled at Indian Airports International Traffic  Total International passenger traffic to be handled at Airports ( Embarked and Disembarked)  Total International passenger traffic at airports by International Carriers  Total international passenger carried by Indian carriers  International Cargo (to be handled by Indian Carriers) at Indian Airports Variables that are derived from the traffic forecast  Domestic Aircraft movements  International Aircraft movements 9.3.2. Parameter Selection and Finalization

The choice of causal parameters and the functional forms underlying the air traffic forecast models took cognizance of the following variables and of similar attempts made on previous occasions as per existing literature:-

Table 48: Universal set of casual factors

Variables analyzed Casual Factors Market • Population • Index of Industrial Production • Personal disposable Income and PFCE (Private final consumption Expenditure) trends • Per Capita Income Size and Traffic Potential • Travel and Recreation trends using limited dependent models/ variables • Propensity to Travel • Leisure of Time and Tourist / Event Attractions using appropriate dummies

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 177

Final report

Variables analyzed Casual Factors • Interregional linkages • Other Demographic , Economic and Social factors Transportation • Distance to Airport Accessibility • Travel Time to Airport • Alternative Modes of Transport • Relative Cost Competition • Relative Travel Time • Schedule • Reliability • Average Fare • Fare Discounting Policies Cost of Air Travel • Total Travel Cost • Value of Time • Service Frequency Schedule Convenience • Time of Departure • Necessary Connections • On – time performance Service Reliability • Cancellation History • Airport – to airport time Transport Time • Door – to door time Post identifying an universal list of factors, a set of predictive parameters are shortlisted based upon a threefold criterion:- 1. The feasibility of parameters that are amenable to forecast given ready availability of data from reliable sources on a perpetual basis; 2. The choice of parameters based upon an appropriate data reduction technique ( zero-order correlation, in this case) 3. Appropriate functional forms that adheres to the required econometric checks and has been back tested for out of sample and out of time conformance. Figure 58: Shortlisted variables

Domestic – Passenger (Initial) International Passenger  Real Per Capital income (PCY)  Investment (% of GDP)  Private Final Consumption Expenditure (PFCE)  Per capita GDP  Index of Industrial Production (IIP)  India-Volume of exports of goods and services (% Domestic – Passenger (Initial) change)  Real Per Capital income (PCY) AR (I)  India-Volume of imports of goods and services (%  Residual Term with no serial autocorrelation change from last year) Domestic- Cargo  Population (in millions)  Index of Industrial Production (IIP) International Cargo  Manufacturing Gross Domestic Product (GDP)  International Cargo (T) at Indian Airports  Private Final Consumption Expenditure (PFCE)  Investment  manufacturing as % of GDP (world average)  India-Volume of exports of goods(% increase)  India-Volume of imports of goods (% change)  India manufacturing GDP (billion)  India-total exports, total imports

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 178

Final report 9.3.1. Regression Model – Functional form and results

The following manifestation of functional forms and the system of equations (model) were used for the purpose of back testing historical trends and projections thereof:-

 Cobb- Douglas based double log model :-

 where, Y is the dependent variable and alpha and beta are coefficients of natural logarithms of independent variables (L&K in this case) used which in turn measure elasticity ( percentage change impact on traffic due to percentage change in explanatory variable/s);. Further, the independent variables were in most cases modelled using a growth function that read as follows:-  E(Yt)=exp(β0+β1X) ; where Y and X are dependent and independent variables respectively.  Ensuring all assumptions of OLS ( Ordinary Least Squares) were adhered to;  Confirming that estimates as used for the purpose of forecast are BLUE (Best Linear Unbiased Estimates) at all times 9.3.1.1. Domestic PAX- Embarked (Passenger traffic)

The following variables were considered for developing the initial model for forecasting domestic passenger traffic:-

 Real Per Capital income (PCY)  Private Final Consumption Expenditure (PFCE)  Index of Industrial Production (IIP) Figure 59: Initial Model Results for Domestic PAX (EMBARKED)

Model Summary Std. Error Adjusted R Durbin- Model R R Square of the Square Watson Estimate 1 0.99 0.979 0.969 9.01E-02 1.47 Predicators: Constant, PFCEIN, IIPIN, PCYIND Dependent variable: Embark

Coefficients–Overall ANOVA F value 129.56 Un-standardized Standardized Model Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) 12.153 7.647 1.58 0.163 IIPIN 1.317 1.156 0.658 1.13 0.298 PCYIND 4.769 1.819 1.837 2.62 0.361 PFCEIN 3.420 3.202 1.515 1.06 0.326 Dependent variable: Embark LN (Domestic Embarked) = 12.153+ 4.769 LN (PCY) + 3.42LN (PFCE) + 1.317LN ( IIP)

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 179

Final report

The following can be inferred from the initial set of results:-

 Other than real PCY , none of the other parameters are statistically significant ( insignificant t values at 5% level of significance-L.O.S);  Given that the aforesaid can to some extent be attributed to presence of collinear variables, it ceases to be a concern as addition of variables other than PCY is not resulting in reversal of signs for those variables and that they otherwise improves the overall explanatory power of the functional fit ( high F value ) and higher adjusted R –squared estimates;  Further, the model could not be conclusively commented upon w.r.t presence of first order serial autocorrelation ( Durbin Watson value of 1.47 ; ( 5% L.O.S, Degree of Freedom(k)=3 , n=10 given 0.625(dl =6.25 <1.47< du=2.016) However, given the many insignificant t- values ( despite overall high F value) and large VIF values ( Variance Inflation Factors), an alternate functional form- elasticity model with real PCY ( one period lag –AR(I)) was used for the purpose of projections. The adopted functional form and the related details follow:-

Model Sum of Squares Mean Square F Sig. Regression 1.446 1.446 72.865 .000b 1 Residual .139 .020 Total 1.585 Co-efficientsa Model Unstandardized Standardized t Sig. Coefficients Coefficients B Std. Error Beta (Constant) -6.754 2.825 -2.391 .048 1 LNPCY 2.355 .276 .955 8.536 .000 a. Dependent Variable: LNEMB

F value and t value are significant

Model Summaryb Model R R Square Adjusted R Std. Error of the Durbin-Watson Square Estimate 1 .955a .912 .900 .14088 1.018 a. Predictors: (Constant), LNPCY b. Dependent Variable: LNEMB Durbin Watson statistic 1.018 given dl =0.879 and du =1.320 at k=1 at 5% level of significance negates definitive presence of first order autocorrelation. 9.3.1.2. Domestic Cargo

The following parameters were initially tested for the purpose of projecting domestic cargo traffic :-

 Index of Industrial Production (IIP)  Manufacturing Gross Domestic Product (GDP)

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 180

Final report

 Private Final Consumption Expenditure (PFCE) Figure 60: Zero Order Correlation Matrix- Domestic Cargo

DC pfce iip manufacgdp DC Pearson Correlation 1 0.966 0.953 0.973 Sig. (2-tailed) 0.000 0.000 0.000 N 10 10 10 10 pfce Pearson Correlation 0.996 1 0.983 0.995 Sig. (2-tailed) 0.000 0.000 0.000 N 10 10 10 10 iip Pearson Correlation 0.953 0.983 1 0.991 Sig. (2-tailed) 0.000 0.000 0.000 N 10 10 10 10 manufacgdp Pearson Correlation 0.973 0.995 0.991 1 Sig. (2-tailed) 0.000 0.000 0.000 N 10 10 10 10 Final Functional form adopted- Ln (Domestic CARGO) = Constant + Ln(IIP) Figure 61: Model Results for Domestic Cargo

Model Summary Adjusted R Std. Error of Model R R Square Square the Estimate 1 0.967 0.934 0.926 8.358E-02 Predicators: Constant, IIP Coefficients Un-standardized Standardized Model Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) 7.566 0.529 14.289 0.000 IIP 1.168 0.110 0.967 10.658 0.000

Overall F and t values significant. No serial auto-correlation ensured. 9.3.1.3. International PAX

For International PAX, the following variables were considered for the purpose of the elasticity model:-

 Investment (% of GDP)  Per capita World GDP  India-Volume of exports of goods and services (% change)  India-Volume of imports of goods and services (% change from last year)  Population (in millions) Functional form adopted-Ln( International PAX carried by Indian Carriers) = Ln ( Investment (% of GDP) )+ Ln(India-Volume of imports of goods and services (% change from last year))+ Ln (population)

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 181

Final report

Figure 62: Model Results for International PAX

Model Summary Std. Error of the Model R R Square Adjusted R Square Estimate 1 0.977 0.955 0.899 1.310E-02 Predicators: Constant, XOFGSDEL, INVGDP,PCYGDP, POPU, MOFGSDEL

Coefficients Standardized Unstandardized Coefficients Model Coefficients t Sig. B Std. Error Beta 1 (Constant) 33.912 6.672 5.083 0.007 INVGDP 0.755 0.207 2.575 3.64 0.022 MOFGSDEL 4.715 0.98 4.809 0.009 POPU 0.170 0.047 1.678 3.635 0.022 Dependent Variable: INTERPAX Overall F and t values are significant. No serial auto-correlation ensured 9.3.1.4. For International Cargo

The following initial variables were considered for developing the initial model for forecasting international cargo traffic

 International Cargo (in Tons) at Indian Airports  Investment  manufacturing as % of GDP (World Average)  India-Volume of exports of goods(% increase)  India-Volume of imports of goods (% change)  India manufacturing GDP (billion)  India-Total Exports, India-Total Imports Figure 63: Zero Order Correlation Matrix- International (cargo)

IC Inv manupergdp indxpInc IndlmpInc Indmanufacgdp indx Indm Pearson IC Correlation 1 0.602 -0.389 -0.267 -0.165 0.991 0.952 0.946 Sig. (2- tailed) 0.066 0.267 0.455 0.649 0.000 0.000 0.000 N 10 10 10 10 10 10 10 10 Pearson Inv Correlation 0.602 1 0.342 0.154 -0.181 0.58 0.443 0.459 Sig. (2- tailed) 0.066 0.334 0.672 0.615 0.079 0.2 0.182 N 10 10 10 10 10 10 10 10 Pearson manupergdp Correlation 1.389 0.342 1 0.423 -0.017 -0.442 -0.59 0.589 Sig. (2- tailed) 0.267 0.334 0.223 0.962 0.201 0.072 0.073 N 10 10 10 10 10 10 10 10

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 182

Final report

Pearson - - indxpInc Correlation 0.267 0.154 0.423 1 0.38 -0.322 0.253 -0.239 Sig. (2- tailed) 0.455 0.672 0.223 0.279 0.364 0.481 0.506 N 10 10 10 10 10 10 10 10 Pearson - - - IndlmpInc Correlation 0.165 0.181 -0.017 0.38 1 -0.255 0.127 -0.127 Sig. (2- tailed) 0.649 0.615 0.962 0.279 0.477 0.728 0.728 N 10 10 10 10 10 10 10 10 Pearson Indmanufacgdp Correlation 0.991 0.58 -0.442 -0.322 -0.255 1 0.954 0.956 Sig. (2- tailed) 0.000 0.079 0.201 0.364 0.477 0.000 0.000 N 10 10 10 10 10 10 10 10 Pearson indx Correlation 0.952 0.443 -0.59 -0.253 -0.127 0.954 1 0.997 Sig. (2- tailed) 0 0.2 0.072 0.481 0.728 0.000 0 N 10 10 10 10 10 10 10 10 Pearson Indm Correlation 0.946 0.459 0.589 -0.239 -0.127 0.956 0.997 1 Sig. (2- tailed) 0 0.182 0.073 0.506 0.728 0.000 0 N 10 10 10 10 10 10 10 10

Final Functional Form Adopted- Ln (International CARGO) = constant + Ln(Investment as % of GDP ) +Ln(manufacturing as % of GDP (world average))

Figure 64: Model Results for International Cargo Model Summary Std. Error of the Model R R Square Adjusted R Square Estimate 1 0.993 0.986 0.982 3.973E-02 Predicators: Constant, WLDINV, MANUGDP

Coefficients Un-standardised Standardized Model Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.775 1.069 2.596 0.036

MANUGDP 1.091 0.068 0.945 15.943 0

WLDINV 0.505 0.421 0.071 1.2 0.269

Overall F and t values are significant. No serial auto-correlation ensured 9.3.2. Analysis and Results

This section details out the results obtained from in terms of demand numbers and human resource requirements for short, medium and long term.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 183

Final report

The forecasting of the demand and human resource numbers was done for Business as usual and optimistic case. Business as usual case had the independent parameters showing growth as predicted in various studies. The optimistic case had differences in statistical parameters and growth rates of independent parameters. 9.3.2.1. Demand Forecasting

Demand parameters for the business as usual case has been given in Table

Table 49: Forecasted demand parameters- Business as usual

Business As Usual Parameters unit 2015 2020 2025 2035 Total international PAX handled at Airports (in million) Nos. 50.8 69.6 108.5 275.4 Total domestic PAX handled at airports(in million) Nos. 139.3 204.7 316.5 600.6 International Cargo (T) at Indian Airports (in million) MT* 1.5 2.3 3.3 6.0 Domestic Cargo (T) Handled at Indian Airports (in million) MT 1 1.3 1.77 3.16 Aircraft movement- Domestic (in lakh) Nos. 12.6 18.5 28.6 54.2 Aircraft movement- International (in lakh) Nos. 3.5 5.4 8.4 21.4

Source: DGCA. IMaCS Analysis. *MT is Metric Tonne  Total PAX (domestic + international) is expected to be 876 million which is 4.6 times the volume in 2015. Total PAX is expected to grow at a CAGR of 8% for the period 2015-35. Domestic PAX will grow at a CAGR of 7.6% and International PAX at 8.8% for the same period. (Refer Table 49 for growth rates)  The Cargo volume is expected to increase to 9.16 million MT from 2.5 million MT at present. It is expected to grow at a CAGR of 6.8% during the period 2015-30. International cargo handled will grow at a CAGR of 7.2% whereas domestic is at 6% during the same period. (Refer Table 49 for growth rates)  The aircraft movements are expected to grow at a CAGR of 8% during 2015-35 and reach 75.6 lakh in 2035. The demand parameters projected for optimistic case has been provided in the table below.

Table 50: Forecasted demand parameters- Optimistic

Optimistic Parameters Unit 2015 2020 2025 2035 Total international PAX traffic handled at Airports (in million) Nos. 50.8 74.6 122.1 337.0 Total domestic PAX handled at airports(in million) Nos. 139.3 229.5 365.1 707.7 International Cargo at Indian Airports (in million) MT 1.5 2.3 3.4 7.1 Domestic Cargo Handled at Indian Airports (in million) MT 1 1.4 1.81 3.32 Aircraft movement- Domestic (in lakh) Nos. 12.6 20.7 33.0 63.9 Aircraft movement- International (in lakh) Nos. 3.5 5.8 9.5 26.2

Source: DGCA. IMaCS Analysis  Total Passenger PAX is expected to reach about 1045 million by 2035 in optimistic scenario which is about 20% higher than the business as usual case  Total cargo handled is expected to be about 10.5 million MT in optimistic case by 2035

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 184

Final report

 Significant growth difference seen across the two scenarios in all the parameters. Table below shows the variation of growth.

Table 51: Forecast results –CAGR

Business As Usual Optimistic Parameters 2015-35 2015-35 Total international PAX traffic handled at Airports 8.8% 9.9% Total domestic PAX handled at airports 7.6% 8.5% International Cargo at Indian Airports 7.2% 8.1% Domestic Cargo Handled at Indian Airports 6% 6.3% Aircraft movement- Domestic 7.6% 8.5% Aircraft movement- International 9.5% 10.6% Source: IMaCS Analysis Scheduled Aircraft numbers is another parameter derived from the demand numbers based on the passengers carried in the past and adjusted for the load factor (other parameters are assumed to remain constant). Average load factor in the last 10 years (estimated as 71%) is expected to remain the same.

The load factor has been calculated as the ratio of Revenue passenger Km to Available Seat Km and Total Aircraft Departures has been calculated as ratio of Aircraft Km Flown to Average stage length.

푅푒푣푒푛푢푒 푝푎푠푠푒푛푔푒푟 퐾푖푙표푚푒푡푟푒 퐿표푎푑 퐹푎푐푡표푟 = 퐴푣푎푖푙푎푏푙푒 푆푒푎푡 퐾푖푙표푚푒푡푟푒

퐴푖푟푐푟푎푓푡 퐾푖푙표푚푒푡푟푒 퐹푙표푤푛 퐴푖푟푐푟푎푓푡 퐷푒푝푎푟푡푢푟푒푠 = 퐴푣푒푟푎푔푒 푠푡푎푔푒 푙푒푛푔푡푕

At present there are 432 scheduled aircrafts which is expected to increase to about 1951 scheduled aircrafts by 2035. The estimation of the requirement of new scheduled aircrafts is provided in the table below.

Table 52: Incremental Scheduled aircrafts required (Nos.)

Scenario By 2020* By 2025* By 2035* Boeing Business as usual 200 550 1520 1,740 Optimistic 225 620 1735 Source: IMaCS Analysis. Boeing * numbers rounded off  India requires 1,520 to 1,735 incremental aircraft in the next 20 years to cater to the growing passenger and cargo traffic.  The above does not include the replacements to be made.  It is expected that the ratio of narrow and wide body aircrafts would remain at 75:25. General Aviation aircraft numbers are expected to grow at the same rate as the scheduled fleet. The GA aircrafts will include everything except scheduled and military aircrafts and includes non- scheduled, jets, helicopters, gliders and balloons. At present the GA fleet strength is 1204 Nos. and is

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 185

Final report estimated that about 4,236 nos. of incremental General Aviation aircrafts are required in the next 20 years.

Table 53: Incremental GA aircrafts required (Nos.)*

Scenarios 2020 2025 2035 Business as usual 560 1530 4240 Optimistic 630 1735 4830 Source: IMaCS Analysis * numbers rounded off 9.3.2.2. Projected Human Resources Requirement

Based on the trends witnessed in various sectors and the likely macro growth potential of the aviation industry, it is expected that the industry would provide direct employment to about 1 million persons by 2035 (business-as-usual case) and it includes 10% - 15% of human resources in the Airline, MRO and Cargo segment migrating to Middle East and SAARC countries. Tables below provide the details of the employment strength and incremental employment required by 2035.

Table 54: Total Direct employment numbers in 2035 (in ‘000 Nos.)

MRO- Scenarios AIRPORT AIRLINE CARGO GH TOTAL INDIA Business as Usual 226 317 33 240 161 977 Optimistic 269 351 36 273 192 1,121 Figure 65: Segment wise share of employment

17% 23% AIRPORT AIRLINE 25% MRO- INDIA 32% CARGO 3% GH

Table 55: Incremental employment required by 2035 (in ‘000 Nos.)

MRO- Scenarios AIRPORT AIRLINE CARGO GH TOTAL INDIA Business as Usual 193 262 32 169 126 782 Optimistic 236 296 35 202 157 926

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 186

Final report 9.3.2.3. Airport Segment

At present airport segment is directly employing about 23,000 people in core service and around 10,000 contractual staff who are handling 190 million passengers in 2015. The function wise employment split is given in the figure below. Figure 66: Function wise employment split*

Airside Management 3% 3% 10% Terminal Management

20% 53% Cargo

11% Engineering and maintenance Security and Safety

Source: AAI. Primary interactions. *Other functions include commercial, Legal, HR, finance, It, marketing, customer services, environment, land management, materials management. The spilt is the weighted average of the proportion in large and small airports It is expected that the productivity will increase due to technology intervention. The employment requirement for the next 20 years has been estimated based on the estimation of passenger traffic handled at airports (Refer table below for the estimation across the scenarios). The contractual staffs are present in the private airports in the ratio of 1:3 (core: contractual). It is expected that the private airports would employee 50% of the employment requirement in 2035. The airport employment numbers required for the next 20 years is provided in the table below.

Table 56: Estimation of Airport Personnel -Core and Contractual (in ‘000 Nos.)

Scenarios Total Strength Incremental Core Total Total 2035 Contractual services employment Employment Business as usual 90 136 226 193 Optimistic 108 161 269 236 Core Total 2025 Contractual Total services Employment Business as usual 48 57 105 72 Optimistic 55 65 120 87 Core Total 2020 Contractual Total services Employment Business as usual 32 28 60 27 Optimistic 35 31 66 33 Airport segment are divided into three segments; CNS, ATC and Airport operations. CNS constitutes 3,220 personnel (10%), ATC constitutes 3890 (12%) and the remaining in airport operations. The personnel strength estimated is provided in the table below.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 187

Final report

Table 57: Sub-segment wise split of personnel strength (in ‘000 nos.)

Sub-Segment Estimates- Total Strength Estimates- Incremental 2015 wise 2020 2025 2035 2020 2025 2035 CNS Business as usual 6 10 22 3 7 19 3 Optimistic 6 12 26 3 9 23 ATC Business as usual 7 12 27 3 8 23 4 Optimistic 8 14 32 4 10 28 Airport Management Business as usual 47 83 177 21 57 151 26 Optimistic 52 94 211 26 68 185 Total Business as usual 60 105 226 27 72 193 33 Optimistic 66 120 269 33 87 236

Human resource requirement for the key functions in the airport management sub-segment has been estimated taking into account the number of large airports to gradually increase to 10 by 2035 (3 by 2020 and 5 by 2025) and the remaining to be small airports51. Taking separate function-wise proportion for large and small airports, human resource requirement for the airport management has been estimated as given in the table below.

Table 58: Sub-segment wise split of personnel strength In Airport Management (in ‘000 nos.)

Total Strength Incremental employment Function wise- AIRPORT MANAGEMENT 2015 2020 2025 2035 2020 2025 2035 Business as usual Airside Management 14 24 41 83 10 27 69 Terminal Management 3 6 11 28 3 8 25 Cargo 5 9 15 31 4 10 26 Engineering and maintenance 1 2 3 8 1 2 7 Security and Safety 1 2 3 7 1 2 6 Other functions 2 4 10 20 2 8 18 Total 26 47 83 177 21 57 151 Optimistic Airside Management 14 27 48 99 13 34 85 Terminal Management 3 6 12 33 3 9 30 Cargo 5 10 18 37 5 13 32 Engineering and maintenance 1 2 3 9 1 2 8 Security and Safety 1 2 3 9 1 2 8 Other functions 2 5 10 24 3 8 22 Total 26 52 94 211 26 68 185

51 Large airports handle about 2.5 to 3 crore pax and small airports handle about 15 lakh pax p.a. Source: Discussions

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 188

Final report 9.3.2.4. Airline Segment

At present airline segment is directly employing about 55,070 people who are handling 190 million passengers in 2015. The split of scheduled aircraft employment across job wise is presented below. Figure 67: Job Role Wise Employment Split

9% 40% 1% 18%

20% 12% Pilot and co-pilots Other flight crew Cabin crew MRO Ticketing and sales Other personnel

Source: DGCA. The employment requirement for the next 20 years has been estimated based on the aircraft numbers and passenger traffic handled by the airline personnel (Refer table below for the estimation across the scenarios). The estimated airline personnel numbers (Scheduled and General Aviation) for the next 20 years is provided in the table which includes human resources migrating. Table 59: Estimation of Scheduled Airline Personnel (in ‘000 Nos.)

Airline personnel required 2015 2020 2025 2035 Total Strength Business as usual 103 159 317 55 Optimistic 107 171 351 Incremental personnel Business as usual 48 104 262 Optimistic 52 116 296 The employment requirement for key job roles is estimated based on the existing proportion as per figure outlined prior which is provided in the Table below.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 189

Final report

Table 60: Key Job role wise employment strength (in ‘000 Nos.)

Total Strength Incremental employment Key Job Roles 2015 2020 2025 2035 2020 2025 2035 Business as usual Pilot and co-pilots 5 13 20 39 8 15 34 Flight and cabin crew 11 22 34 68 11 23 57 MRO 11 19 30 59 8 19 48 Ticketing and sales 7 11 18 35 4 11 28 Other Personnel 21 38 57 116 17 36 95 Total 55 103 159 317 48 104 262 Optimistic Pilot and co-pilots 5 13 21 43 8 16 38 Flight and cabin crew 11 23 37 76 12 26 65 MRO 11 20 32 66 9 21 55 Ticketing and sales 7 12 19 39 5 12 32 Other Personnel 21 39 62 127 18 41 106 Total 55 107 171 351 52 116 296

The ticketing and sales function with its associated roles, going forward, maybe performed by Ground Handling or individual outsourced entities.

9.3.2.5. Cargo Segment

At present the air cargo segment is directly employing about 71,000 employees in supply chain and airport, handling a total cargo volume of 2.5 million MT in 2015. The department wise employment split in the industry in mapped below. On an average 125 MT is handled by a person in airport and 50 MT in the supply chain. Figure 68: Cargo - Department wise employment split

Ground operations 39% Security, documen… 24% Flight ops 10% Engineering 15% HR and admin 2% Finance 3% Marketing 1% QC 1% IT 3% Purchase 2% Source: IMaCS analysis, industry sources At present, Ground Operation constituted 39% of the employment followed by Security & documentation at 24%. The key job roles in the cargo segment are Loader (60%-70% of ground operation employees), x-ray checkers (25% of security and documentation employees), Dangerous Goods checkers (25% of security and documentation employees), and over all security (50% of security and documentation employees).

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 190

Final report

The employment requirement for the next 20 years has been estimated based on the estimation of cargo traffic handled at the airport and in the supply chain (Refer table below for the estimation across the scenarios). The productivity is expected to increase by 25% in supply chain and by 20% in the airport by 2035. The estimated cargo personnel for the next 20 years in provided in the table below (Including an additional 15% to take into account the migrating human resources). Table 61: Estimation of Cargo Personnel (in ‘000 Nos.) Cargo personnel required 2015 2020 2025 2035 Total Strength Business as usual 106 142 240 71 Optimistic 107 147 273 Incremental personnel Business as usual 35 71 169

Optimistic 36 76 202

The key job role wise human resources requirement has been outlined below for the next 20 years. Table 62 : Key Job role wise employment strength (in ‘000 Nos.)

Total Strength Incremental employment Key Job Roles 2015 2020 2025 2035 2020 2025 2035 Business as usual Loader 18 27 36 61 9 18 43 X ray checkers 4 6 9 14 2 5 10 Dangerous goods checkers 4 6 9 14 2 5 10 Security 9 13 17 29 4 8 20 Others 36 54 71 122 18 35 86 Total 71 106 142 240 35 71 169 Optimistic Loader 18 27 37 70 9 19 52 X ray checkers 4 6 9 16 2 5 12 Dangerous goods checkers 4 6 9 16 2 5 12 Security 9 13 18 33 4 9 24 Others 36 55 74 138 19 38 102 Total 71 107 147 273 36 76 202 9.3.2.6. MRO Segment

As discussed earlier, there are 5 types of checks namely; transition, daily, A check, B check and C check. The first three are done by the airline employee where as the B check and C check are done by third party MRO. At present only 10% of the third party MRO activities in done in India, rest are done outside. There are about 1,250 MRO employees in India with major share of employees in hanger maintenance and workshop related skilled resources

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 191

Final report

Figure 69: MRO -Department wise employment split*

Hanger Mx( AMEs/ 4% Technicians) 10% Operations Support Services 19% 51% Mx. Planning

6% 4% QA 3% Security 3%

Source: Primary interactions with MRO companies. *Others include functions like fire safety, production, IT, facility equipment Maintenance, procurement& logistics, technical services, Finance and Accounts. Mx refers to maintenance Based on the number of wide and narrow bodied aircrafts and man-hours required for each aircraft the employment numbers for the MRO segment has been estimated. Assuming the share of Indian MRO to increase from current level of 10% to 25% by 2035, the following employment numbers would be generated which also takes into account the migrating human resources). Table 63: Estimation of MRO Personnel (in ’00 Nos.) MRO personnel in India 2015* 2020 2025 2035 Total Strength Business as usual 42 131 330 13 Optimistic 44 141 360 Incremental personnel Business as usual 29 118 317 Optimistic 31 128 347 Source: Secondary sources Some of the key personnel in MRO segment are Aircraft maintenance Engineer (AME) (20% of hanger employees), technicians (80% of hanger employees), sheet metal workshop - mechanic (30- 40% of workshop employees), Composite mechanic (15-25% of workshop employees), Non destructive testing mechanic (8 to 10% of workshop mechanic) and Painting (12- 15% of workshop mechanic.) The employment requirements in each job role are estimated based on the above parameters. Table 64: MRO Job role wise employment strength (in ’00 Nos.)

Total Strength Incremental employment Key Job Role Wise 2015 2020 2025 2035 2020 2025 2035 Business as usual Technicians 1 4 13 33 3 12 32 AME 5 17 53 133 12 48 128 Sheet metal workshop- mechanic 1 3 10 25 2 9 24 Composite 1 2 6 15 1 5 14 Non destructive testing mechanic 0 1 2 5 1 2 5 Painting 0 1 3 7 1 3 7 Other supporting services 5 14 44 112 9 39 107 Total 13 42 131 330 29 118 317 Optimistic Technicians 1 4 14 37 3 13 36 AME 5 18 58 148 13 53 143

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 192

Final report

Total Strength Incremental employment Key Job Role Wise 2015 2020 2025 2035 2020 2025 2035 Business as usual sheet metal workshop - mechanic 1 3 11 27 2 10 26 Composite 1 2 7 17 1 6 16 Non destructive testing mechanic 0 1 2 6 1 2 6 Painting 0 1 3 8 1 3 8 Other supporting services 5 15 46 117 10 41 112 Total 13 44 141 360 31 128 347 9.3.2.7. Ground handling Segment

At present Ground Handling segment is directly employing about 35,000 people handling about 95 million passenger traffic in 2015 (single side). It translates to around 370 employees handling one million passengers. The employment requirement for the next 20 years has been estimated based on the estimation of one way passenger traffic handled (Refer table below for the estimation across the scenarios) Table 65: Estimation of Ground Handling Personnel (in ‘000 Nos.)

GH personnel estimation 2015 2020 2025 2035 Total Business as usual 50 78 161 35 Optimistic 56 90 192 Incremental Business as usual 15 43 126 Optimistic 21 55 157 Source: IMaCS Analysis. EPFO

The key function-wise human resources requirement has been outlined below for the next 20 years. Going forward, the overall functional distribution of job roles will be the same (airside constitutes 50%, terminal constitutes 30% and others constitute 20%). However, some job roles may be phased out such as ramp handlers with the increased usage of passenger boarding bridges. Also, the phenomenon of productivity improvement has also been factored in this segment as the segment is moving towards becoming more process oriented with higher efficiencies.

Table 66: Function-wise Ground Handling Personnel (in ‘000 Nos.)

Total Strength Incremental employment Functions 2015 2020 2025 2035 2020 2025 2035 Business as Usual Airside 18 25 39 81 7 21 63 Terminal 10 15 23 48 5 13 38 Other functions 7 10 16 32 3 9 25 Total 35 50 78 161 15 43 126 Optimistic Airside 18 28 45 96 10 27 78 Terminal 10 17 27 58 7 17 48 Other functions 7 11 18 38 4 11 31 Total 35 56 90 192 21 55 157

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 193

Final report 10. Recommendations This report, in line with the study objectives, has outlined the study sector and segments (namely airport, airline, cargo, MRO and ground handling) and mapped the employment structure in these segments. Based on the employment structure, the key capacity building requirements across the key job roles have also been outlined. The existing training landscape has also been mapped and the in-service training which is in vogue across the study segments has also been outlined along with the training infrastructure required. These qualitative parameters of analysis culminated in the quantitative human resources model, which has indicated the human resource requirement for the overall civil aviation sector to grow at the anticipated rates. This has lead to the need for strategies that can ameliorate the skill landscape in civil aviation in India – the recommendations. The recommendations have been built also based on key stakeholder feedback. The key aspects of the feedback are highlighted below:

There is a need to take a The need of the hour is critical look at how the to have a unified vision training process is when it comes to happening training

Skill building in civil Building the trainer pool aviation needs a simultaneously is also a combination new must initiatives as well as utilisingexisting

Specialized skill building The time is ripe to centers can be set up to explore new pedagogies heighten the awareness and training ideologies for training

Examining the key stakeholder feedback highlight the need to build an ecosystem for skill building in India in the civil aviation sector. The key takeaways lead to build a sustainable ecosystem. Across the world several models have been explored in the skill development ambit. Examining the models lead to mapping the key requirements that are needed to build the ecosystem. These skill development and capacity building ideologies have evolved significantly across the world. These models that have evolved in various countries can be broadly grouped under three categories namely 52-

52 Source: Secondary sources and CII international skill conclave background paper

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 194

Final report

 Anglo-Saxon Model (Australia, UK, USA, and Canada): In this model, formations of skills are largely determined by market mechanisms whereby supply of skills is determined by the demand for those skills. If there is a demand for a certain skill, companies will pay a premium to obtain persons with these skills. Hence, there would be a large number of people who would learn these skills until the premium is normalized by supply. This model is applicable to economies where the process of industrialization has been in operation for an extended period of time and a well developed and efficient labour market is present.

 Asian Tigers Model (South Korea, Singapore, and Taiwan): This model is the opposite dimension of the Anglo-Saxon model. There is consequently a very high level of government involvement in matching supply and demand for skills in the economy. The government uses policy level initiatives to facilitate the same. This model finds relevance in countries needing to industrialize in a short period of time as it supplements market operation. This has resulted in the faster transition of these countries from being low skill economies to high skill, high value added economies. Singapore, for example, took advantage initially of its low labour cost. It applied a strategy wherein government policy was used to make the economy attractive to MNCs which needed lower value skills. As full employment was nearly reached and labour costs began rising, the government had two options: namely, to control cost of labour or move labour to higher value added activity. Eventually, the government started discouraging the use of low cost labour by imposing a levy on companies using low cost labour and using this money to fund other training initiatives.

 Germanic Model (Germany, Switzerland, Austria, and Denmark): This model finds its place between the Anglo-Saxon model and the Asian-Tiger model. The market drives skill development to an extent but there is extensive legal framework for industrial relations and training in place, to limit management discretion regarding the direction that skills formation programmes may take. The companies find involvement in terms of company finance which is derived from cross holdings and banks placing pressure on the companies to secure long term survival and growth of the organization. The industrial relations institutions are involved in discussions with employers on issues such as staff reductions and ensuring a need for employers to take a long term view on business. All stakeholders are represented in business decisions. Thus, the recommendations that have been outlined will focus on how the training landscape needs to revamp itself to meet the burgeoning requirements. What needs to be intrinsically appreciated is that the recommendations are not stand alone ideas but they are ideals that need to have holistic participation from the stakeholders involved in the sector. These ideals also are not standalone ideas rather they lead into each other. Thus, the recommendations will evolve around a framework that looks to strengthen the core processes to ensure the output is in-line with the expectations for the sector – by aspiring to have a quasi Anglo-Saxon and Asian Tiger model. The same has been explained in detail in the framework for recommendations.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 195

Final report 10.1. Framework for recommendations

The framework for the recommendations is built based on the typical training value chain in India and what needs to be strengthened to ensure that the training process echoes the market requirements.

Figure 70: Training Value Chain in India

Input

Output

The above training value chain starts with standardization and curriculum development to the certification process which should eventually lead to placement. The skill building landscape in civil aviation is undergoing significant changes with anticipated demand competing with the need for highly skilled people. In civil aviation the skill levels aspired are to global standards. Thus, the skill building model that needs to be adopted requires global approach where the standards and the government need to drive the initiatives; as outlined prior. The proposed framework for recommendation is outlined below, which has five dimensions: 1. Institutional strengthening 2. Infrastructure and capacity planning 3. Training process re-engineering 4. Funding mechanisms 5. Monitoring and evaluation The same is pictorially represented below:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 196

Final report

Figure 71: Recommendations framework

1.Institutional strengthening

5.Monitoring 2.Infrastructure and and capacity evaluation planning Robust training and skill building ecosystem

3.Training 4.Funding process re- mechanisms engineering

The framework dimensions are expounded in further detail:– 1. Institutional strengthening – Institutional strengthening is about increasing the ability of institutions to perform their functions which would lead to improved governance and better outputs. In the context of training, the existing institutional structure will be strengthened further to ramp up the training

2. Infrastructure and capacity building – Strategies that aim to boost the existing infrastructure and ultimately aid in capacity building will be explored in this framework dimension

3. Training process re-engineering – this dimension will outline actionable ideas to modify the existing training process to enhance the quality of the output as well as the make the system more efficient

4. Funding mechanisms – This dimension outlines the key funding related strategies that will aid the capacity building required in the sector

5. Monitoring and evaluation – this dimension outlines the principles of monitoring and evaluation required to build performance as well as sustainability in the proposed training ecosystem Each of the above ideals will be explored in detail with the associated strategies.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 197

Final report 10.1.1. Institutional strengthening

The current training ecosystem in India for civil aviation related training across segments is under several attached organizations of the MoCA and managed by various associate organizations, as outlined below with a snapshot: 1. DGCA: The DGCA issues the following flight crew licenses under the provisions of Rule 38 and Schedule II of the Aircraft Rules, 1937.

- Pilot - Flight Instructor or Assistant Flight Instructor - Flight Navigator - Flight Engineer - Flight Radio Telephone Operator

Infact, the DGCA has licensed institutes where the training can be undertaken. There are about 40 flying training organizations and 53 AME schools across India where candidates may study and then appear for the DGCA exams. The DGCA conducts examination for Pilots and Engineers as per the Examination Schedule published in the beginning of the year. In general, Pilot examinations are conducted every month whereas the engineers’ examination is conducted three times a year in the months of February, June and October53. 2. BCAS: The BCAS essentially is connected to aviation security and it conducts courses for which the appropriate license is also issued. Some of the key courses that BCAS offers are54:

 AVSEC Instructors Course  AVSEC Auditors Refresher Course  AVSEC Management Course 09  AVSEC Air Cargo  Crisis Management  AVSEC Supervisors 08 days ASG/Airlines/BCA  Crew Course Additionally there are dangerous goods, screening, X-ray related courses for which BCAS gives licenses to the personnel. In addition to the above courses, the individual candidates may also undertake the security courses in private entities.

3. AAI: The AAI, as outlined prior, conducts the following courses:

 For ANS through the CATC and Regional Training centers.  Additionally, the Fire Training Centers, NFTI and Indian Aviation Academy also offer courses. Captive ‘in-airport’ training also occurs

53 Source: DGCA 54 Source: BCAS

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 198

Final report

Additionally, there exists a parallel ecosystem of private players who have established various institutes over the nation across various disciplines in civil aviation landscape. Though there are checks and balances that are created by the MoCA as well as the associate organizations, the current training ecosystem exists as standalone approach to training as opposed to a unified common policy and standards to drive it forward. With the vast number of human resources that are required – a magnitude of 0.8 to 1 million people by 2035 – there is an urgent need to augment the existing institutional framework that drives the skill building across the segments. This augmentation needs to be done with two independent arcs that need to coincide:  An apex body - National Civil Aviation Training Entity (NCATE) should be established that oversees all training related activities for the Civil Aviation sector in India. NCATE would work closely with MoCA and attached organizations to formulate a unified training policy for the Civil Aviation sector.

 All training and skill building programmes and measures should be in line with the existing NSQF and MSDE frameworks

10.1.1.1. Incubation of the National Civil Aviation Training Entity (NCATE)

The National Civil Aviation Training Entity (NCATE) has been proposed with the following core ideals: . Unified view of training and skill building requirements in civil aviation  For all segments in the sector  Assess demand across time periods for all roles . Facilitate establishment of Centers of Excellence for best practices . Provide strategies for infrastructure leverage . Create mechanisms to boost investments in training . Facilitate international collaborations in training and skill building . Make available information and knowledge through digital platform . Coordinate with Ministry of Skill Development and Entrepreneurship (MSDE) . Create awareness for employment opportunities in civil aviation Thus, the aim of the proposed NCATE is to be a one-stop solution for all training based initiatives and strategies. Thereby, the NCATE brings sharp focus to skill building by the following:  First of its kind structure which highlights the importance of training and skill building  Unified strategies w.r.t training across all segments in civil aviation  Capacity building for personnel of attached organizations  Enhanced accountability for training results with monitoring and evaluation

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 199

Final report

The proposed NCATE may have the following functional structure:

Figure 72: Proposed NCATE functional structure

NCATE

International Knowledge Research Training collaborations dissemination

Function Brief To analyse and update key inputs related to training and skill Research development Work with organizations and create centers of excellence where required. Training Also empower the personnel of attached organizations further by building their skills Look for areas where international collaborations may be explored in areas connected to training. Specifically, the NCATE International collaborations can look to explore greater synergy with ICAO, CANSO, IATA, ACI, etc Ensure key sector related information is available also in the Knowledge dissemination digital platform The NCATE proposed is the need of the hour in the sector for streamlining the training and skill building initiatives. At this juncture, the role of NCATE is more ‘hands-on’. When the training ecosystem in the sector acquires the requisite maturity, the role of NCATE can be made to focus on monitoring and lending the directional support. Global best practice – AAFSA – South Africa AAFSA established during 1999 is a SACAA Approved & Accredited Aviation Training Organisation (ATO) in terms of Parts 141, 121, 108 & 109 of the CAR’s. AAFSA is also Aerospace Transport Education Training Authority (TETA) and Safety And Security Sector Education and Training Authority (SASSETA) Approved & Accredited in terms of several of the aviation safety and security training needs as provided by AAFSA.

AAFSA TRAINING STANDARDS All of the AAFSA training material complies with either local and/or international standards as applicable and where required, courses are approved and accredited by the South African Civil Aviation Authority (SACAA), Transport Education raining Authority (TETA) and Security Training Authority (SASSETA) (Refer Annexure 6.3, Page 14) and/or are conducted in terms with the requirements of the International Civil Aviation Organization (ICAO), the International Air Transport Association (IATA) and/or Airports Council International (ACI)

Source: http://www.aafsa.co.za/

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 200

Final report

Though the proposed NCATE’s function is much wider in scope than AAFSA the core of the organizations is training amelioration. The existing institutional framework may also play the development role outlined for NCATE in the civil aviation sector.

10.1.1.2. Establish cargo and ground handling Sector Skill Council

The current skill landscape in India has undergone a sea change in the last decade with the establishment of the SSCs, adherence to the NSQF and formulation of the national occupational standards.

The Indian Skill Landscape – some salient features - Sector Skill Councils are set up as autonomous industry-led bodies by NSDC. They create Occupational Standards and Qualification bodies, develop competency framework, conduct Train the Trainer Programs, conduct skill gap studies and Assess and Certify trainees on the curriculum aligned to National Occupational Standards developed by them.

- The National Occupational Standards (NOS) specify the standard of performance an individual must achieve when carrying out a function in the workplace, together with the knowledge and understanding they need to meet a standard consistently. Each NOS defines one key function in a job role

- The National Skills Qualifications Framework (NSQF) is a competency-based framework that organizes all qualifications according to a series of levels of knowledge, skills and aptitude. These levels, graded from one to ten, are defined in terms of learning outcomes which the learner must possess regardless of whether they are obtained through formal, non-formal or informal learning. NSQF in India was notified on 27th December 2013. All other frameworks, including the NVEQF (National Vocational Educational Qualification Framework) released by the Ministry of HRD, stand super-ceded by the NSQF. Under NSQF, the learner can acquire the certification for competency needed at any level through formal, non-formal or informal learning. In that sense, the NSQF is a quality assurance framework. Presently, more than 100 countries have, or are in the process of developing national qualification frameworks. The NSQF is anchored at the National Skill Development Agency (NSDA) and is being implemented through the National Skills Qualifications Committee (NSQC) which comprises of all key stakeholders. The NSQC's functions amongst others include approving NOSs/QPs, approving accreditation norms, prescribing guidelines to address the needs of disadvantages sections, reviewing inter-agency disputes and alignment of NSQF with international qualification frameworks.

Source: MSDE In the current scenario there is the Aerospace & Aviation Sector Skill Council (AASSC) that has been approved in June 2013. The key milestones for the AASSC are55:

55 Source: NSDC

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 201

Final report

 Number of Job Roles for which National Occupational Standards – 90  Certifications – 404,841  Trainers Trained Training – 4,186  Institutes Affiliated – 176 The AASSC looks more at higher order skill sets in select segments. This one SSC’s ambit might not be effective in reaching across the cross section of roles and competencies that are required to be built in the civil aviation landscape. This becomes especially true in the case of skills related to cargo and ground handling segments. Thus, IMaCS proposes a specific SSC to focus on the cargo and ground handling segments.

The SSC that looks at cargo and ground handling is of utmost importance due to the following reasons:

- Cargo and ground handling segments are estimated to generate 42% of human resource requirement - The current ecosystem existing for these segments needs a complete revamping - The students attend courses but are not able to find right avenues for certification - This has lead to a system when the industry needs to invest in re-skilling - Though these segments look ‘uncomplicated’ they are the vital cogs in civil aviation landscape

Existing AASSC Proposed Cargo and ground handling SSC Focus on job roles, training institutes, trainer development for: - Design and development Focus on job roles, training institutes, trainer - Manufacturing development for: - MRO - Cargo roles - Aerospace - Ground handling roles - Airport operation

This SSC to collaborate with THSC, RASCI and any other SSC where synergy of job roles for which NOS has already been developed can be explored.

In the area of cargo the MoCA has initiated efforts in skill building with a 1 day course on basics of air cargo with the participation from the industry. This initiative may be used as a launch pad for creation of the cargo and ground handling SSC with support from industry partners, association, etc

Global best practice – Germany focus cargo skill development Background: Transport and Logistics is the third biggest sector in the German economy and as such it is vitally important to the economy. In total there are over 390 colleges and universities in the country, producing 11,600 logistics graduates per year (Forschungsagenda Logistik, DVZ 2010).

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 202

Final report

Global best practice – Germany focus cargo skill development Germany offers an extensive amount of further education options employing the “Dual system”, involving onsite work training backed up by classroom based theoretical learning. Education and Training are identified in the “The Action Plan for Freight Transport and Logistics” as key components for strengthening Germany’s position as a centre for logistics excellence. The plan outlines key initiatives to improve employment prospects and improve the industry’s image to entice a higher level of prospective employee.

Action taken: Effizienz CLuster Logistik Ruhr is Europe’s largest logistics research and Innovation cluster. It brings together twelve scientific institutions and over 160 companies from all stages of the logistics value chain. The cluster is designed to develop logistics for the future and “focuses on efficiency gains through the autonomisation of logistical processes and make use of key technologies and data”. €40m federal funding has been made available to the cluster since 2010.

Also, Logistik Campus was opened in 2013 to develop the essential skills in interdisciplinary logistics research. The Logistics Initiative Hamburg is a network set up by the regional state ministry and the local business community to link the fields of business, science and research. Its objectives are to enhance Hamburg’s profile as a logistics industry location in collaboration with the business development initiatives in the metropolitan region, and encourage comprehensive knowledge transfer to support companies and promote innovation. As well as the initiation of numerous research projects, included in the activity of the network is a task force to deal with training and education for the sector in the region, the main priorities of the group are junior/recruiting, the image of the sector, lifelong learning qualification requirements and sustainable HR management. Source: Addressing the Demand for Skills in the Freight Transport, Distribution and Logistics Sector in Ireland 2015-2020

Along similar lines, the cargo as well as ground handling segments can be rejuvenated in India. Thus, the proposed NCATE and SSCs will revamp the skill space in the civil aviation landscape with focused institutional structure and enabling environment to create standards. The existing AASSC may also widen its scope to include cargo and ground handling segments or it may also be aligned with logistics SSC.

Having established institutional framework and standardization the Infrastructure and capacity building in training also needs to grow in tandem to support the vision. The same has been explored in the next dimension.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 203

Final report 10.1.2. Infrastructure and capacity building

This dimension of infrastructure and capacity building becomes significant with the tremendous need for skilled resources across all levels, as depicted below. The human resource estimated is 0.8 – 1 million spanning different levels.

Figure 73: Absolute no. of human resources required in 2035; 100% = ~0.9 mn

Highly Specialised skills 8-10%

Medium to high complexity skills 25-30%

Low to medium complexity skills 62-65%

Source: IMaCS analysis, Industry sources

The key aspects that have to be intrinsically appreciated from the above human resources pyramid are:

 The observed ratios across levels is representative for all the study segments  Each block of the pyramid needs its own customized approach to build skills  The higher order skills building is required at the top management  The mid level of the pyramid needs to explore strategies to enhance the employability quotient  The lower segment in the pyramid requires strategies to build skills as well as employability

It is with this background the following strategies have been proposed:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 204

Final report

Figure 74: Initiatives proposed

Initiatives Highly Specialised skills Centres of Excellence 8-10%

Medium to high complexity skills Enhancing employability 25-30%

Trade Specialization Low to medium complexity skills Centres 62-65%

Capacity building for trainers

- To build the high skills, the centers of excellence (CoE) have to be established through PPP. The CoE will propagate thought leadership, best practices, research and high end skills. Thus, CoE serve as the focal points in training higher order skills. These also address the latent concern of quality civil aviation training being too expensive for multiple private sector initiatives. Thus, the CoE serve as government driven models where world class infrastructure and content are created for skill development - To address employability, have an integrated approach to training where there is constant skill upgradation as well as formal exposure to glean on-the-job skills - For the entry level skills trade specialization centers have been proposed - Of course, to support all the above strategies build a strong trainer pool

The same have been outlined in detail.

10.1.2.1. Establish Centres of Excellence

One of the key areas where infrastructure establishment would be required is in setting of up of centers of excellence. This CoE establishment has to be led by the NCATE to define the design principles for the CoEs. A CoE is defined as -

“A center of excellence is a premier organization providing an exceptional product or service in an assigned sphere of expertise and within a specific field of technology, business, or government, consistent with the unique requirements and capabilities of the COE organization.56”

56 Source: Carnegie Mellon University

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 205

Final report

Any Centre of Excellence (CoE) has to ideally to be a collaborative activity between a team of high quality researchers in the institution and researchers or research-users in several companies or organizations on new and emerging technologies, multi-disciplinary and translational research relevant to development goals in the geography. The CoE as a concept is built on some abstract principles with the common aim of being in place to bring in greater rigour in the area of focus.

Design Assessment Well - principles principles defined CoE

 Design principles – The CoE in aviation should usher in best practices in training and research  Assessment principles – The CoE’s efforts should be measurable with defined targets Based on the above principles, in the civil aviation space, the CoE can be established for the segments where higher order skills are required. The following areas can be explored for CoE to start with:

Table 67: CoE details

Segment Indicative locations Indicative skill building areas Remarks  Line maintenance  Base maintenance  The locations have  Engine and APU been identified overhauling based on the  Structural Repairing ecosystem for  Cabin and Seat MRO Repairing  Skill building areas Bangalore/Hosur,  Landing Gear Repair need to be MRO Hyderabad, Nagpur and Overhauling customised and Delhi  Engine maintenance depending on the  Avionics maintenance aircraft type, MRO  Airframe maintenance requirements,  Workshop skills like OEM requirement, NDT, painting, welding, regulatory sheet metal, aircraft guidelines, etc structural work, etc  Flight dispatch Tier 2 cities in each  The focus on tier 2  Pilot zone such as Jaipur, cities to inculcate Airline  Revenue management Shillong, Ahmedabad, localized skills to  In flight services etc prepare for future  Aircraft security, etc

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 206

Final report

The CoE would not be a standalone infrastructure, would rather work with the skill building ecosystem in and around the geographical area to effectively ameliorate the skill building practice. The CoE would also work with the SSCs in taking the standards to the grassroot level. The same has been depicted below:

Figure 75: CoE implementation model

SSC CoE works with SSC for standardization, assessment, etc

Geographical area Institute 4 Institute 1

Center of excellence

CoE shares key content, infra, faculty, assessment Institute Institute tools, etc 3 2

The element of proto-cooperation can be explored by the institutes to drive skill development processes. Thus, the higher order skill sets may be built with the MoCA intervention.

10.1.2.2. Enhancing employability

The objective of this initiative is to enhance the employability of the mid level of the pyramid. Enhancing employability is of utmost importance in the sector. Whilst the new infrastructure and initiatives can aim to create a strong workforce, the existing workforce also needs to be constantly up skilled in a dynamic sector like civil aviation. There are several key roles in the study segments where this becomes critical and the same are highlighted below:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 207

Final report

Table 68: Indicative job roles

Segment Indicative Job role . Ticketing agent . Check-in agent / personnel Airlines . Boarding personnel . Baggage screeners . Customer representative . HVAC maintenance personnel . Electronics maintenance personnel . Electrical maintenance personnel . Civil maintenance personnel . Runway maintenance executive Airports . PBB executive . Drivers . Security in charge . Ground maintenance in charge . Fire and rescue officer . Hangar Technicians MRO . Workshop technicians To enhance the employability twin approaches can be adopted: . Offering bridge courses with specific modules . Utilizing airports as training infrastructure

10.1.2.3. Enhancing employability with bridge courses

Bridge courses can be offered to personnel at regular intervals to enhance their skill levels for some of job roles identified above. Civil aviation sector is a mélange of people from several sectors. Thus, the target audience for these bridge courses can be: - ITI - Polytechnic graduates - Engineers - Hospitality sector personnel - Retail sector personnel, etc These bridge courses can be offered at the airports, SSC affiliated training center or the CoE depending on the domain and skill level. The following domain areas can be offered: 1. Civil aviation requirements 2. Airport operations 3. Security 4. Civil aviation safety regulation 5. Maintenance basics 6. Equipment handling basics 7. Customer management, etc

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 208

Final report

In addition to domain skills, noncore aviation skills that are quite important can also be offered like:

 Hospitality  Interpersonal skills  Grooming  Language  Written skills  Basic IT, etc These courses certifications will be from the relevant SSCs like Tourism and hospitality SSC, Retail SSC, Nasscom, Construction SSC, Plumbing SSC, etc

10.1.2.4. Utilizing airports as in situ training centres

Airports are locations where all aspects of the civil aviation segment converge – airport operation, airlines, MRO, etc. With the available space as well as the innate nature of the airport to offer opportunity to build skills, they can be used as centers for skilling. This airport training should:

 Offer personnel sandwich courses (a training course with alternate periods of formal instruction and practical experience) in areas like: o Airport management o Customer service o Airport security o Baggage screening o Civil, electrical and electronic maintenance, etc

 If a new personnel has to work in any airport put them through a compulsory 15 day orientation course working at the airports There are over 100 airports in India which are located Pan-India. These airports may be utilized to offer key training and skilling modules.

A dedicated training area may be designated in every airport which will offer students a firsthand knowledge of skills and on-the-job challenges. This will offer the following advantages:

1. Build skills that are endemic to a particular airport 2. Offer a firsthand practical exposure to working intricacies 3. Post training resource becomes work ready 4. Reduced pressure on organizations to skill resources

Global best practice – Manchester Airport Academy Students who are all 16 or over, attend an Assessment Centre as their first step into working at Manchester Airport. Bespoke training is delivered to all candidates to up-skill individuals and provides valuable work experience. The combination of service delivered is essential in assisting residents to gain access to suitable vacancies at the airport.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 209

Final report

Global best practice – Manchester Airport Academy Once in work students receive ongoing support and encouragement to develop their skills to ensure that their new working life is a rewarding one.

Airport Academy is a story of successful collaboration. While Manchester Airport has led the project, it has been made possible through high-level partnerships in the Airport Community Network. Source: Manchester airport

MoCA may consider providing fiscal incentives to airport operators for establishing in-situ centres

10.1.2.5. Establishment of trade specialization centres

The objective of this initiative is to enhance the skill level of entry level personnel. The trade specialization model will look to build the key skill paucity areas, thereby enabling an appropriately skilled human resource pipeline – especially in the cargo and ground handling segments. These segments require dedicated efforts to: - Consolidate the segments with the long value chain which includes outsourced entities, employment agencies, forwarders, custom brokers, commerce, etc - Initiate large scale skill building processes - Define standards and all processes being aligned to NSQF Thus, these centers will be in line with the SSC which will of course play a key role in consolidating the segments. This stability in the supply of personnel will pave the way for initiatives that can look at further strengthening. Table 69: Trade Specialization Model Trade specialization model Brief Objective Build skills in key priority areas of cargo and ground handling Cargo  Dangerous goods  Load and trim  Palletization  Documentation  Security  Safety, etc Indicative Target areas

Ground handling  Ramp management  Cleaning  Baggage management  Kiosk management  Passenger service, etc Locations Around logistics and air transport hubs  Identify SSC partner institutes that can collaborate with Process the SSC to host the courses for the priority areas

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 210

Final report

Trade specialization model Brief  SSC to identify the specialized equipment required for such trades and share with the institute  Such institutes, as well as equipment to be hosted, should be based on key demand areas  These institutes would serve as co-hubs where other institutes / ITIs in the region (‘spoke’) would be able to make use of such equipment for lab-work and modules requiring exposure to such specialized equipment.  Existing and new courses can continue to be offered in the institutes. However, in case of specific modules /lab-work requiring use of specialized equipment and courses offered at TSCs can be managed on a ‘transfer of credit’ basis  Thus the student will continue to study at his institute of choice but be able to access specialized courses/ modules/equipment at TSC on a ‘transfer of credit’ basis  All content and assessment to be in line with cargo and Control ground handling SSC criteria  Skilled HR available in priority areas Anticipated impact  Industry ready workforce  Geographically endemic skills built

10.1.2.6. Trainer development – using blended learning pedagogy and targeting ESM

The paucity of skilled trainers and faculty is one of the key bottlenecks in the Indian skill landscape. This is even more significant in the case of civil aviation skill ecosystem currently. Evolving an ecosystem where adequate trainers are also created is a must.

What can be explored here is that there are Ex-servicemen (ESM) and soon to-be-ESM who are available annually, who can be up skilled to become trainers. In order to maintain a youthful profile of the Armed Forces, approximately 60,000 service personnel are retired /released every year at comparatively young age. Majority of the service personnel at the time of retirement are at an age where they have numerous unfinished domestic responsibilities, which necessitate their taking up second occupation57. The Directorate General Resettlement (DGR) is an Inter Service organization functioning directly under the Department of Ex-Servicemen Welfare (Ministry of Defence). It is the endeavour of DGR to provide opportunities to service personnel and ESM for this reorientation. The ESM / soon-to-be ESM belong to the beneficiary segment that already possesses the softer aspects like discipline, overall aptitude, etc as they are ESM. Also, they might already be highly skilled however might require initiation into the trainer skill sets like initiation into technology,

57 Source: DGR

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 211

Final report enhancing the domain knowledge, etc. The idea of using the ESM across various walks of life has already been explored in India. The ESM can also be used as resources in the following segments:

- Administration across segments - Security across segments - MRO of aircrafts - ANS - Airport operations

Skilling the ESM may also follow the blended learning pedagogy. Blended learning is a mix of face to face classroom methods and learning ‘beyond the classroom’ through collaborative work between learners. A blended learning program is where a student learns through a combination of traditional brick and mortar system and learning technologies, all of which are designed by trainers. Essentially blended learning has three components: 1. Self learning – through technology backed avenues like internet, in smart phones, etc 2. Collaborative learning – through peer interaction 3. Classroom learning – in the typical classroom environment

The blended learning content can also be developed by the CoE with partner institutes. The self learning can happen either through internet/smart phone or the ESM can access the content at airport training center which is closest to him/her. The latter two components can be at the Centres of Excellence in the respective areas. The same has been depicted below:

Figure 76: Trainer development using blended learning

Trainees – ESM Airport infrastructure CoE

. The trainee segment here is . ESM who have settled/hail from . On completion of the self learning ESM/soon-to-be ESM who remote areas will be able to access modules and assessments, the evince interest to become the self learning modules at the ESMs will be able to attend the trainers for civil aviation airports course components at the CoE

. These trainees register with . They need to register with the SSC affiliated partners and will airport and proceed to take the self be able to access the self learning modules learning modules

Best practice – Ola Sainik initiative in India Taxi aggregator Ola today announced its partnership with the Directorate General Resettlement (DGR) under the Ministry of Defence (MoD) to provide an opportunity for ex-servicemen to turn

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 212

Final report

Best practice – Ola Sainik initiative in India entrepreneurs with Ola.

Under ‘Ola Sainik’, Ola will invest in the re-skilling of interested candidates and help them with technology to grow as skilled micro-entrepreneurs on the Ola platform. Ola will also provide training, education and insurance for the family members of ex-servicemen on the Ola app. The first batch of ‘Sainiks’ are expected to join the Ola platform in the coming week. Source: The Hindu - August 14, 2015 10.1.3. Training process re-engineering

The core training process needs to be re-looked in the civil aviation landscape. These strategies need not be stand alone initiatives rather the NCATE, SSCs, CoEs and institutes working together. The key initiatives that have been proposed are:

Figure 77: Key Initiatives Proposed

1.Institutional strengthening

5.Monitoring 2.Infrastructure and and capacity evaluation planning Robust training and skill building ecosystem

3.Training 4.Funding process re- mechanisms engineering

1. Standardization 2. Unified content and NOS development – 3. Creation of LMIS development including e-content

The training process re-engineering is the dimension that translates the ideals of the institutional mechanism as well as the infrastructure and capacity building. The current training process, though rigorous, is not able to assemble together the requisite focus in training. Thus, the following key strategies have been suggested:

 Standardization with NOS development  Unified content development – including e-content  Creation of LMIS

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 213

Final report

The same have been outlined in detail.

10.1.3.1. Standardization with NOS development

National Occupational Standards (NOS) specify the standard of performance an individual must achieve when carrying out a function in the workplace, bringing together skills, knowledge and understanding they need to meet that standard consistently. National Occupational Standards are valuable tools to be used as benchmarks for qualifications as well as for defining roles at work.

National Occupational Standards are used to:

 describe good practice in particular areas of work

 set out a statement of competence

 provide resource for a variety of workforce management and quality control tools

 offer a framework for training and development

 Form the basis of all qualification frameworks. National Occupational Standards (NOS) set out measurable performance outcomes to which an individual is expected to work in a given occupation or job role.

 NOS are National because they can be used in every part of the India where the functions are carried out.

 NOS are Occupational because they describe the performance required of an individual when carrying out functions in the workplace, i.e. in their occupation

 NOS are Standards because they are statements of effective performance which have been agreed by a representative sample of employers and other key stakeholders and approved by the India NOS Panel in QRC process58 With several key areas in the civil aviation landscape that have been outlined which require immediate skill development efforts, it is imperative the NOS are developed for priority job roles. The NOS for civil aviation will possess the core NOS that address the core technical skills as well as the support NOS (though referred to as support these are essential). Some illustrative NOS elements have been identified for entry job roles in the study segments. Along similar line the relevant SSCs may undertake QP development at the earliest. . These are for standalone roles. In a typical organization structure, these will be multiple levels of hierarchy related roles, depending on the segment. These also have to be in consideration for when developing the NOS.

58 Source: RSDCindia.in

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 214

Final report

Table 70: Illustrative NOS for study segments

Segment Job role Indicative core NOS Indicative support NOS - Work within - Prepare to carry out regulations airside operations - Maintain safety - Prepare material to - Maintain security Airside operations carry out airside - Manage the operation environment - Carry out airside - Create operation appropriate documentation Airport - Work within - Carry out wildlife regulations control - Maintain safety - Carry out wildlife - Maintain security Wildlife control encroachment - Manage the officer prevention environment - Manage the - Create associated appropriate equipment documentation - Work within regulations - Manage passengers - Maintain safety - Manage conflict - Maintain security - Manage passenger - Understand the Check-in personnel expectations organizational - Check-in passengers SLA - Receive baggage - Interpersonal skills and grooming Airline - Work within regulations - Manage passengers - Maintain safety - Manage conflict - Maintain security - Manage passenger - Understand the Floor walker expectations organizational - Maintain the SLA allotted zone - Interpersonal security skills and grooming - Understand - Work within different zones of regulations aircraft - Maintain safety Aircraft - Understand the - Maintain security MRO maintenance associated tests and - Manage the engineer responses environment - Understand the - Understand the associated safety organizational precautions processes

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 215

Final report

Segment Job role Indicative core NOS Indicative support NOS - Have knowledge on OEM parameters - Manage the documentation - Manage the - Work within machine for the regulations activities - Maintain safety Workshop - Manage the - Maintain security executive - associated hazards - Manage the machining - Understand the environment workshop process - Create - Appropriate usage appropriate and storage of tools documentation - Ensure right equipment available to load / unload - Work within aircraft regulations - Ensure the access - Maintain safety Cargo Loader points are identified - Maintain security - Manage the aircraft - Vigilance for load and unload dangerous goods - Manage the equipment after the load and unload - Maintain ramp readiness - Work within - Ability to position regulations Ground handling Ramp handler and affix the ramp - Maintain safety - Manage ramp after - Maintain security usage 10.1.3.2. Unified Content development – MOOC model

Content developed in line with the SSC defined curriculum is the need of the hour in the civil aviation skill landscape. This is due to the following factors:

- High training cost - High cost associated with content duration - Need for experts to build content - Need for standards

Though the checks and balances have been provided the content that is used varies significantly across various institutes due to above factors. Thus, a single unified content has to be developed based on the SSC standards.

The initial content development has to be helmed by the MoCA due to the high cost factor. Also, the expertise available also leads to the rigour in the content development process. Subsequently, the content may be updated periodically based on the monitoring and evaluation.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 216

Final report

Table 71: Role of stakeholders in content development

Stakeholder Envisaged role • Play the role of the anchor for the respective set of skills SSCs • Create the NOS and assessment criteria for the job roles • Offer suggestions on how the content can be customized • Indicate the right infrastructure at knowledge centre CoEs • Percolate to the respective institutes in the area

• Aid in building industry relevance in the courses and ensure it Industry becomes a collaborative process

Global Best practice – CFA Institute, USA The CFA Program course of study includes the Candidate Body of Knowledge (CBOK), the curriculum content, learning outcome statements (LOS), and the topic area weights.

Updates to the course of study are informed by ongoing practice analysis, which includes feedback from practicing investment professionals, security market regulators, university faculty, and policymakers. This process helps determine the knowledge, skills, and abilities needed by today's investment management professionals. This process, called practice analysis, is a dynamic assessment method that informs updates to the CFA Program curriculum Guided by a volunteer Education Advisory Committee, ongoing practice analysis is one of the defining elements of the CFA Program and is one reason why the CFA charter is the preferred designation of employers. The process includes interviews and surveys involving more than 1,600 institutional and private wealth market practitioners, security market regulators, university faculty, and policymakers via panel sessions in major financial centers across the globe.

CFA Institute also asks investment management practitioners to evaluate more than 90 key investment topics to determine how well the curriculum addresses the tasks they perform on daily basis. Source: CFAinstitute.org Taking cue from the rigorous curriculum and content development process, the civil aviation space can also have efforts which will agglomerate think tanks of several stakeholders. Appropriate instructional media design support may also be used in the process.

One of the key aspects in content development that can be explored is the e-content development process.

10.1.3.3. Creation of Massive Open Online Course (MOOC) in civil aviation

MOOC is an online course aimed at unlimited participation and open access via the web. In addition to traditional course materials such as filmed lectures, readings, and problem sets, many MOOCs provide interactive user forums to support community interactions between and faculty. Developing MOOC reduces costs significantly. The application of MOOC modules in civil aviation can be explored, especially when it comes to in- service training and some common modules for training like:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 217

Final report

- Aviation regulation - Health and safety - Environment - Basic IT - Interpersonal skills - Working as a team, etc Some of the key advantages of exploring this pedagogy are:  Mobility for the trainees  Ease of access from different locations as opposed to assembling at a particular location  Round-the-clock availability of the modules that would aid the people looking for up skilling  Standardization and consistency, in line with the SSC requirements

These MOOCs need to be developed in line with the SSCs defined standards.

Best practice –National Programme on Technology Enhanced Learning The National Programme on Technology Enhanced Learning (NPTEL), a project funded by the Ministry of Human Resource Development (MHRD), provides e-learning through online Web and Video courses in Engineering, Sciences, Technology, Management and Humanities. This is a joint initiative by seven IITs and IISc Bangalore. Other selected premier institutions also act as Associate Partner Institutions. NPTEL is a curriculum building exercise and is directed towards providing learning materials in science and engineering by adhering to the syllabi of All India Council for Technical Education and the slightly modified curricula of major affiliating Universities. It has developed curriculum based video courses and web-based e-courses targeting students and faculty of institutions offering UG engineering programs.

NPTEL provides free online courseware in the form of web courses and video lectures. These lectures utilize a multitude of facilities of the video medium such as chalk-and-talk, tablet writing, power point, two and three dimensional animations, interactive codes, etc. Each course comprises approximately 40 video lectures of about 1 hour duration. An online discussion forum is incorporated wherein students can post and review questions. Wherever applicable, course assignments, handouts, self-evaluation tasks, etc. have been integrated.

There are approximately 921 courses (419 are web based courses and 502 are video courses) in various disciplines currently being offered across Engineering, Sciences, Technology, Management and Humanities Source: Various secondary sources Many nations across the world have started to adopt e-learning in civil aviation sector. Also, there is linking of these e-learning modules to performance management system to enable continuous learning. This continuous learning should ideally be linked to career progression also.

Global best practice – Turkish Aviation Academy The Academy has increased the scope and efficiency of its training and has obtained approvals and accreditations necessary to proceed to coordinate, in cooperation with Istanbul Technical University (ITU), a Master’s Degree Programme in Air Transport Management for professionals who wish to lead the aviation sector.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 218

Final report

Global best practice – Turkish Aviation Academy The Air Transport Management Master’s Programme is unique in that it is delivered by instructors from prominent institutions in the field of aviation including Boeing, the Massachusetts Institute of Technology (MIT), Cranfield University, University of British Columbia (UBC) and ITU. We are providing enhanced e-learning support by utilizing infrastructure to deliver the programme.

Source: ICAO report on Aviation Training Going Forward 10.1.3.4. Creation of Labour Market Information System (LMIS)

With the training landscape having a streamlined approach to developing content, assessment tools and embracing alternate pedagogies there exists a need to dynamically reflect what the market requires in terms of people and what the supply is for the same. This data needs to be available at critical job role level across the segments. This can be achieved with a LMIS. A Labour Management Information System (LMIS) is the systematic collection, analysis and dissemination of information regarding the demand for and supply of labour. It is a crucial component of the technical and vocational education and training. Where the system would make a real difference is that is market (demand) driven and hence acts as an effective planning tool. LMIS can be built for the civil aviation sector – led by the SSCs. The following action plan can be followed for the development of the same:

 The objective of the system should be to become a repository of information on industries, job seekers and educational institutions in the Sector

 The industry should be able to update its job requirements on the LMIS – at a job role level, while the skilled job seekers should be able to apply for these job opportunities.

 In case the job seekers aspire but do not possess the skills, job seekers should also be able to list themselves up for jobs.

 Based on the job seeker profile they can be guided for appropriate training

 Post the training, based on updation, the job seeker can find correct placement Once all the above data is available on the website, the second phase of the programme can be launched, wherein tools need to be built for analysis of this data for policy refinement and further planning

Table 72: Challenges and Strategies

LMIS challenges/targets Strategies/Opportunities Root of successful LMIS is the timeliness of the development. Timeliness The envisaged LMIS has to be developed in 2 quarters Holding continuous awareness programmes about the system and Awareness spreading publicizing it through use of media such as newspapers, radio and television so that civil aviation sector job seekers can be prepared to

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 219

Final report

LMIS challenges/targets Strategies/Opportunities utilize it The LMIS must be updated periodically with inputs from industry Periodic updation with proactive participation The real success of the LMIS is when it becomes a dynamic tool Analysis tool which leads to predicting the typical jobs required across the various segments in the sector

The strengthening of institutional mechanism, infrastructure and capacity building and revamping the skilling process require planned funding mechanisms. The same has been outlined next.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 220

Final report 10.1.4. Funding mechanisms

Skill and capacity building need robust funding mechanisms. The funding mechanisms can be a combination of multiple avenues as depicted below:

Figure 78: Funding models

Partnership Model

Government Funded Funding Self Sustaining Model Model Models

Private Funded Model

The nature of funding mechanism will be driven by demand, maturity of sub-sector, the cost of training and trainees propensity to pay for training programme. The various types of financial instrument have been experimented in globally to improve the attractiveness of training programme.

Type of Delivery Working Definitions Country / State instrument mechanism examples Direct subsidy Grant Direct government funding to employers Australia, Denmark, payment for the purpose of training. Such funding Finland, Germany, may also be channeled through training Ireland funds.

Training Funding in the form of vouchers to be Germany (North-Rhine voucher exchanged for a certain amount or a Westphalia) certain value of training.

Tax Tax Deduction of a certain sum or fraction of Austria, Belgium expenditures allowance the costs of training investment from (Flanders), Italy, Korea, taxable profits, over and above the Malta, South Africa, US Tax credit Deductionstandard deductibility of a certain ofsum training or fraction costs. of a Austria,(Iowa) Canada, Chile, training investment from the tax liability, France, Japan, which is wastable (unable to reduce the Luxembourg, amount of tax owed to less than zero) or Netherlands, Spain, US refundable (entitles the employer to a (Mississippi) payment if the relief reduces the amount of tax owed to less than zero). Tax Employer social security contributions on Austria, Australia (State exemption/r trainees/apprentices are exempted from level), Italy, Spain eduction the tax base, or taxed at a lower rate.

Source: Developed by ICF GHK

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 221

Final report 10.1.4.1. Funding estimate for initiatives

The quantum, sources and nature of funding for skill development is largely driven by underlying key challenges faced by the sector. Some of the key challenges faced by the aviation sector are

 Aviation skills are diverse (airport, airline, MRO, cargo and ground handling), highly regulated, process oriented and specialised, and require significant lead time to build capacity specifically high end skills  High cost of training restricts organisation from investing in upskilling and new skilling.  Unable to attract good quality of trainees  The courses across segments not able to reflect the industry requirements in a majority of areas, which leads to re-skilling  Largely driven by Industry initiative  Insufficient practical / hands-on component across key areas  The skilling system by itself that needs revamp to reflect the changing market skill requirements  Low RoI of training institutions restricts firms from investing in training infrastructure  Early stage of SSC implementation Given the above conditions, the govt needs to put in place initial investment to invigorate skill development. IMaCS estimates around Rs.560 crore required for skill development in aviation sector (which is small fraction of infrastructure outlay for airport).

The funding estimates for the suggested initiatives are as follows:

Funding Requirement (Rs. Crore)

Initiative/Sub- Source of # 2016-17 2017-18 2018-19 Total Initiative/Activities Funding

Establishment of A Programme Management 1 1 1 3 MoCA Structure within MoCA Formation of steering committee within MoCA to A1 review the implementation of various initiatives - Formation of initiative wise committee - 2 sub- committee - i) Institutional A2 Strengthening Sub- committee, ii) Infrastructure, Capacity Building and Training Sub-committee Initiative 1: Institutional B Strengthening

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 222

Final report

Funding Requirement (Rs. Crore)

Initiative/Sub- Source of # 2016-17 2017-18 2018-19 Total Initiative/Activities Funding

Sub-Initiative 1A: Incubation B1 of National Civil Aviation 5 10 10 25 MoCA Training Entity Sub- Initiative 1B: Establishing Cargo and B2 5.25 5.25 MoCA/MSDE Ground Handling Sector Skill Council Initiative 2: Infrastructure C and Capacity Building Sub-Initiative 2A: Establishment of Centre of C1 1 160 300 461 PPP Excellence in MRO and Airline Sub-initiative 2B: Enhancing C2 Employability through bridge 0.5 0.5 MoCA/MSDE/SSC course Sub-initiative 2C: C3 Establishment of Trade 1 4 5 10 MoCA Specialisation Centre Sub-initiative 2D: NOS Linked Training of Job roles in Will be funded through PMKVY C4 MSDE Cargo, Ground Handling, Scheme MRO, Airport and Airline Sub-initiative 2E: Trainer C5 Identification and 2 2 MoCA/MSDE/SSC Development Initiative 3: Training Process D Re-engineering Sub-initiative 3A: NOS Will be developed by respective SSC D1 MoCA/MSDE/SSC Development and LMIS through B2, C1, C2, C4 initiatives Sub-initiative 3B: Creation of D2 Massive Open Online Course 1 2 2 5 MoCA (MOOC) in Civil Aviation Sub-initiative 3C: Capacity D3 Building of DGCA, BCAS, AAI, 10 20 20 50 MoCA Indian Aviation Academy etc. Total Funding Requirement (Rs. 24 199 338 561 Crore)

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 223

Final report 10.1.4.2. Fiscal Benefits for Skill Development

In addition to above funding requirements, the Govt may consider the following fiscal benefits to facilitate training programme in civil aviation industry 1. Service tax exemption for SSC accredited training institutions in aviation training 2. Govt to reimburse onetime expense required for affiliation and accreditation of training institutions to SSC 3. Govt to prioritize training of cargo ground handling and selected job roles in airlines and airport operations through Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme. Under the scheme, monetary reward would be provided to trainees who are successfully trained, assessed and certified in skill courses run by affiliated training providers 4. Scholarship programme for students selected for internship programme for airport and airline operations. The program will target college, polytechnic and ITI students. The scholarship will be funded by MOCA and administered through SSC 5. 10 year tax holiday for investing in MRO Centre of Evaluation training institutions.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 224

Final report 10.1.4.3. Implementation plan for monitoring and evaluation for next 3 years – 2016-17, 2017-18, 2018-19

The implementation plan for the skill development outlines the phase-wise road map. The key for this is the quick turnaround of the preparatory phase which will lead to seamless implementation. The same has been outlined as a detailed activity chart below:

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 225

Final report

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 226

Final report

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 227

Final report

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 228

Final report

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 229

Final report 10.1.4.3.1. Implementation plan for prioritised high impact initiatives for Year 1

Based on the complexity of the initiatives as well as effort required the following maybe implemented in year 1:

- Formation of cargo and ground handling Sector Skill Council (CGHSSC) - Creation of NOS for customer interface job roles - Recognised internship programme for Aircraft Maintenance Engineers (AME) - Creation of Trainers from Ministry of Defence (MoD) - Creation of Massive Open Online Courses (MOOCs) - Establishment of National Civil Aviation Training Entity (NCATE)

1. Formation of Cargo and Ground Handling Skill Council (CGHSSC)

The CGHSSC formation has to have the following typical steps:

 Meeting with Industry Stakeholders in Cargo and Ground Handling  Identification of promoters of Cargo and Ground Handling SSC (CGHSSC)  Formation of legal structure for Cargo and Ground Handling SSC  To engage with MSDE and NSDC for formation of SSC  Preparation of necessary documentation for SSC formation

MoCA should facilitate the above process leveraging on the industry participation (which already exists) for creating the cargo course. Timeline – 4/5 months to identify organizations and make proposal for establishing CGHSSC through NSDC 2. Creation of NOS for customer interface job roles

The customer interface roles floor walker, ticketing personnel, customer service, lost and found personnel, etc need NOS to incorporate the aviation aspect59. The following steps can be adopted for this:

59 AASSC to create the complete occupation map with all roles during the NOS development process

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 230

Final report

 AASSC to collate customer facing job roles in Civil Aviation Sector  AASSC to communicate selected job roles to MoCA  Discussion with Tourism and Hospitality Skill Council (THSC), Retail Association’s Skill Council of India (RASCI) to understand how aviation aspect can be captured in the existing QPs or new QPs  Develop NOS for the selected job roles  Identify industry groups to validate the same  QRC process to finalise the QPs  Curriculum development of NOS  Identification of training partners  Content development and roll-out training programmes in line with NSQF  Assessment and Certification

Timeline – 3 months 3. Institutionalization of internship programme for Aircraft Maintenance Engineers (AME)

AME role based internship programme can be implemented with following:  Create guidelines for internship programme in consultation with DGCA to foster institute – industry connect  Identify industry partner for AME apprenticeship programme  Define internship duration and tasks  Agree on apprenticeship period compensation  Create assessment mechanism for internship  Create certification mechanism for internship  Roll out internship programme

Timeline – 5 months

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 231

Final report 4. Creation of trainer pool – MoD

The MoCA should work with MoD to create the trainer pool. The following steps need to be undertaken:

 MoCA and SSC to formulate overall policy of trainer development  Tripartite agreement (MoCA, MSDE and MoD) for identification of ESM for trainer role in Civil Aviation Sector  Mapping of segment wise trainer requirement – Subject wise, Number, Qualification, Experience etc.,  Mapping of ESM w.r.t profile of trainer  Directorate General of Resettlement to identify ESM/soon to be ESM for training  AASSC to identify affiliated institutes for master trainer course  Facilitation of curriculum development and content for master trainer programme  Assessment and Certification

Timeline – 6 months

5. Creation of MOOCs

MOOCs can be created for some modules where self learning can be advocated. These are the following steps:

 Identify the list of self learning modules with industry participation across segments  Collation of necessary modules in consultation with stakeholders  Approach MHRD on the MOOC creation  Finalise the MOOCs framework and host on platform

Timeline – 6 months

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 232

Final report 6. Establishment of NCATE

Key steps for establishing NCATE are:

 Finalisation of NCATE mandate and legal structure (if required)  Budget allocation  Location identification e.g. Indian Aviation Academy or Aviation University  Finalisation of Administrative structure of NCATE  Recruitment/Transfer of human resources

Timeline – 10 months

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 233

Final report 11. Conclusion The Indian civil aviation sector is poised for heady growth. This anticipated growth also translates itself to a requirement of about 0.8- 1million trained resources over the next two decades. This sector has certain unique characteristics as far as skilled human resources are concerned including:

. The skilled human resource needs to be available at the point of service delivery . Civil aviation skills are often a confluence of multi-sector skill sets . The human resources require to comply with process, regulation and achieve global and national standards . Focus on security and safety across all operations . Skill acquisition process has a definitive gestation period for most roles . There is a constant need for up-skilling due to the dynamic nature of the sector

Thus, the need of the hour is a unified view and plan for Skill Development in the sector with the three layers of the Aviation sector Skill Pyramid requiring different institutional interventions.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 234

Final report Annex – Methodology

The methodology was a mixture of primary and secondary research.

Primary research

The overall study coverage was across the study segments – airports, airlines, MRO, cargo and support.

Across the study segments, multiple interactions were held with stakeholders across the following sample:

Sample details

Segment Sample details Stakeholders to meet

 Chennai  Kochi  Delhi Airport  Allahabad  Amritsar  Mumbai  Nagpur  Guwahati  Air India  Indigo  Ministry of Civil Airlines  Jet Airways Aviation  Go Air  DGCA  Air Costa  AAI  IATA  Captive in airline  HoDs/Function MRO  Air works heads/Managers  GMR Aerotechnic in study  Air India Engineering segments’  Blue Dart organizations  Lufthansa Cargo  Principal, faculty Cargo  Skyways Cargo and students in  IATA training institutes  Captive in airlines

Ground handling  Celebi  Captive in airlines  Aircraft maintenance engineering (DGCA approved minimum 1 institute in North, South, East, West and Central) Training institutes  Cabin crew and in-flight services (minimum 1 public and 5 private)  Dangerous goods (minimum 1 public and 2 private)

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 235

Final report

Segment Sample details Stakeholders to meet  Airport and ground handling (1 each recognized by DGCA/state or central university/AICTE/UGC)  Basic cargo operation (1 autonomous body and atleast 2 UGC/DGCA/University approved).

Secondary research

IMaCS relied on information available in the public domain that it considers reliable to validate the findings of the primary survey. Documents referred will include (and not be limited to) Existing reports of MOCA, Planning Commission, NSSO, ASI, Census, CAPA, IATA, ICAO, DGCA and any other reliable source of information.

Comprehensive Skill Gap Analysis and Future Road Map for Skill Development in Civil Aviation Sector 236