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State of the industry September 2009

Sections

1.0 Business of an airport B-1


- Employment B-2
2.0 Key success factors of an airport B-3
3.0 Regulatory framework B-5
- Airports Authority of India Ltd B-8
4.0 International player profile B-11
- Atlanta International Airport B-11
- Incheon International Airport (Seoul) B-15
5.0 Indian player profile B-17
- Bengaluru International Airport Ltd B-17
- GMR Hyderabad International Airport Ltd B-20
- Cochin International Airport Ltd B-23
- Delhi International Airport Ltd B-26
- Infrastructure development progress at IGI Airport B-28
- Mumbai International Airport Ltd B-30

Charts

1.0 Business of an airport


01 Business of Airport B-1

3.0 Regulatory framework


01 Operational hierarchy B-5

Figures

1.0 Business of an airport


01 Percentage breakup of AAI revenue for 2007-08 B-9

4.0 International player profile


01 Percentage-wise break-up of operating revenue, 2002 B-11
02 Percentage-wise break-up of operating revenue, 2008 B-11
03 Passenger movement and growth rate B-12
04 Freight movement and growth rate B-12
05 Aircraft movement and growth rate B-13
06 EBITDA share of activities compared to overall EBITDA B-14
07 Revenue share of activities compared to total revenue B-14
08 Passenger movement and growth rate B-15
09 Freight movement and growth rate B-15
10 Aircraft movement and growth rate B-15

Continued

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-i


continued

Figures

5.0 Indian player profile


01 International & Domestic Passengers and growth rate B-18
02 Peak Passenger Movement - Monthly B-18
03 International & Domestic Aircraft and growth rate B-18
04 International & Domestic Freight and growth rate B-19
05 International & Domestic Passengers and growth rate B-20
06 Peak passenger movement - Monthly B-21
07 International & Domestic Aircraft and growth rate B-21
08 International & Domestic Freight and growth rate B-21
09 International & Domestic Passengers and growth rate B-24
10 Peak passenger movement - Monthly B-24
11 International & Domestic Aircraft and growth rate B-25
12 International & Domestic Freight and growth rate B-25
13 International & Domestic Aircraft and growth rate B-27
14 International & Domestic Freight and growth rate B-27
15 International & Domestic Passengers and growth rate B-28
16 Peak passenger movement - Monthly B-28
17 International & Domestic Passengers and growth rate B-30
18 Peak passenger movement - Monthly B-31
19 International & Domestic Aircraft and growth rate B-31
20 International & Domestic Freight and growth rate B-31

Tables

2.0 Key success factors of an airport


01 Financial details of global airports in 2008 B-3

3.0 Regulatory framework


01 Brief financial of AAI B-9

4.0 International player profile


01 Shareholding pattern as on December 31, 2008 B-13

5.0 Indian player profile


01 Shareholding pattern B-17
02 BIAL has following tie-ups with a range of service providers B-19
03 Shareholding pattern B-20
04 GHIAL has the following tie-ups with a range of service providers B-23
05 CIAL has the following tie-ups with service providers B-26
06 Proposed city-side development B-26
07 Share holding pattern B-27
08 Major capital expenditure plans B-29
09 DIAL has following tie-ups with a range of service providers: B-29
10 Share holding pattern B-30
11 MIAL has tie-ups with the following service providers B-32

B-ii CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


1.0 Business of an airport

Chart 1: Business of Airport

Full capacity

Investment in airport
infrastructure at Growth in traffic Growth in aero revenue
existing site Saturation

Investment in greenfield
Investment in connectivity by government &
airport
investment in real estate, hotels, commercial
devlopment in and around airport by the
developer

Increased economic Growth in non-aero


activity revenue

Full capacity

Source: CRISIL Research

Airports are providers of infrastructure assets to the airline industry being key contributors to local and regional
infrastructure. Airports are gateways to developing local businesses. Though airports and the airline industry are
linked and interdependent, the business model for both is quite different. The airline industry can respond to
dynamic market conditions by moving quickly to increase or decrease capacities through leasing/sale or
retirement of aircraft. Development of airport infrastructure requires long-term planning, as capacities cannot be
increased quickly due to the minimum setup time required for expanding the infrastructure. Airport planning
exercise is regularly prepared from a 30- to 50-year view with modular expansion capabilities. Airports have
common business characteristics but each airport operates under its own local context. Local factors like
economic activity in the region, legal practices and regulatory environment can significantly affect its financial
performance.

In the last 20 years, airports have evolved, globally, from being government-controlled infrastructure providers to
global business-oriented profitable service providers. Consequently, similar to other corporations, they experience
pressure from various stakeholders for operating efficiently and profitably. In India, airport corporatisation started
in the mid-90s with the Cochin International Airport Ltd.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-1


Employment
According to Airport Council International (ACI) data, there are over 4.5 million people employed at various
airports across the world as in 2005. Airports not only lead to employment at the airport location but also act as a
catalyst for business development in the surrounding locations. They provide a significant push to business and
tourism sectors, which in turn drives employment. Good airport infrastructure and convenient connectivity is an
important factor contributing towards sustained growth momentum of a region.

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2.0 Key success factors of an airport

Capacity expansion at low costs - Keeping capital costs under control is a huge challenge for airports as
operations are asset-intensive and expensive. Assets need to be maintained and enhanced over a period for
sustaining the quality of service for the changing customer base. Airports should be planned with a 30-50 year
view to avail adequate land for any large expansion plans; modular expansion is possible for smaller increase in
capacities. Nearly 30 per cent of expenses are due to depreciation and amortisation. The airports are also required
to invest in new technology and provide for security at the airport. As per International Civil Aviation
Organization (ICAO), 86 per cent of airports around the world in 2005 were profitable.

Table 1: Financial details of global airports in 2008


Parameters Fraport Airport Auckland Airport Atlanta Airport
Passenger movement millions no. 53.47* 13.2 90.0
Revenue Rs billion 137.6 11.3 30.6
EBITDA Rs billion 39.3 8.9 16.6
EBITDA Margin % 28.6 78.5 54.2
PAT Rs billion 11.6 3.7 11.8
PAT Margin % 8.4 33.0 38.6
Shareholders equity Rs billion 164.4 61.7 N.A
Total assets Rs billion 425.2 97.1 162.1
*Passenger Movement at Frankfurt Airport
Source: Airport Websites

Managing relationships with government authorities CRISIL Research believes airport operators have to
walk a tight rope of managing relationships with various government authorities, as their cooperation is important
for fixing tariff for aeronautical services, funding of airport expansion projects and timely completion of
connectivity projects. In addition, airport operators need to be proactive in explaining their point of view to
government authorities in fixing tariffs for all regulated charges and charges such as user development fees.

Ability to attract economic activity CRISIL Research believes that the airports ability of developing
economic activity at the airport location in terms of cargo operations, commercial office space, hospitality, retail
and other aviation related activities will be crucial for increase in non-aeronautical revenues and profitability.
Airport operators need to offer effective and customised solutions to potential customers for attracting them to the
airport.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-3


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3.0 Regulatory framework

The aviation industry in India is governed by the Ministry of Civil Aviation.

The following organisations/ regulator fall under its purview:


Directorate General of Civil Aviation (DGCA): It is a regulatory body responsible for regulation of air
transport services to/from/within India and for the enforcement of civil air regulations, air safety and
airworthiness standards.
Bureau of Civil Aviation Security (BCAS): It is a regulator of civil aviation security in the country. Central
Industrial Security Force (CISF) under the aegis of Bureau of Civil Aviation Security (BCAS) provides
security at all airports.
Airports Authority of India (AAI): AAI ensures the task of creating, upgrading, maintaining and managing
civil aviation infrastructure both on the ground and air space in the country. Air traffic control (ATC), arm of
AAI controls the landing and departure of flights from airport control towers across all airports in India.

Chart 1: Operational hierarchy

Ministry of Civil
Aviation

AAI DGCA BCAS

ATC CISF

Source: CRISIL Research

Ministry of Civil Aviation


Ministry of Civil Aviation is the nodal agency responsible for the formulation of national policies and
programmes for the development and regulation of civil aviation and for devising and implementing schemes for
the orderly growth and expansion of civil air transport in India. Its functions also extend towards overseeing
airport facilities, air traffic services and carriage of passengers and goods by air. The ministry also administers
implementation of the Aircraft Act, 1934.

Composition of the ministry


The secretary is the head of the ministry; one additional secretary and financial adviser, three joint secretaries,
seven officers of the level of director/ deputy secretary/ financial controller and ten officers of the level of under
secretary assist the secretary.

It has under its purview the following organisations:

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-5


Attached/ autonomous organisations
- Directorate General of Civil Aviation
- Bureau of Civil Aviation Security
- Commission of Railway Safety
- Indira Gandhi Rashtriya Uran Akademi

Air carriers
- Air India Ltd
- Indian Airlines Ltd
- Pawan Hans Helicopters Ltd

Airport operator
- Airports Authority of India

Directorate General of Civil Aviation (DGCA)


The Directorate General of Civil Aviation is the regulatory body in the field of civil aviation primarily dealing
with safety issues. It is responsible for regulation of air transport services to/from/within India and for the
enforcement of civil air regulations, air safety and airworthiness standards. It is also responsible for the
coordination of all regulatory functions with the International Civil Aviation Organisation (ICAO). DGCA, an
attached office of the Ministry of Civil Aviation, is headquartered in New Delhi and with regional offices in
various parts of India.

Functions of DGCA
Registration of civilian aircraft.
Formulation of standards of airworthiness for civilian aircraft registered in India and grant certificates of
airworthiness to such aircraft.
Licensing of pilots, aircraft maintenance engineers and flight engineers, and conducting examinations and
checks for that purpose.
Licensing of air traffic controllers.
Certification of aerodromes and communication navigation surveillance (CNS)/ air traffic management
(ATM) facilities.
Ensuring the proficiency of flight crew and also of other operational personnel such as flight dispatchers and
cabin crew.
Granting of Air Operators Certificates to Indian carriers and regulation of air transport services operating
to/from/within/over India by Indian and foreign operators, including clearance of scheduled and non-
scheduled flights of such operators.
Conducting investigation into accidents/incidents, and taking accident prevention measures including
formulation of implementation of safety aviation management programmes.
Carrying out amendments to the Aircraft act, the Aircraft rules and the civil aviation requirements for
complying with the amendments to ICAO annexes, and initiating proposals for amendment to any other act
or for passing a new act in order to give effect to an international convention or making amendment to an
existing convention.

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Coordination of ICAO matters with all agencies and sending replies to state letters, and taking all necessary
action arising out of the Universal Safety Oversight Audit Programme (USOAP) of ICAO.
Supervision of the institutes/clubs/schools engaged in flying training including simulator training, aircraft
maintenance engineering (AME) training or any other training related with aviation, with a view to ensuring
a high quality of training.
Granting approval to aircraft maintenance, repair and manufacturing organisations and their continued
oversight.
To act as a nodal agency for implementing and coordinating matters relating to facilitation at Indian airports,
including holding meetings of the National Facilitation Committee.
Rendering advice to the government on matters relating to air transport including bilateral air services
agreements, on ICAO matters and generally on all technical matters relating to civil aviation, and to act as an
overall regulatory and developmental body for civil aviation in the country.
Coordination at national level for flexi-use of air space by civil and military air traffic agencies and
interaction with ICAO for provision of more air routes for civil use through Indian air space.
Keeping a check on aircraft noise and engine emissions in accordance with ICAO guidelines and
collaborating with the environmental authorities in this matter, if required.
Promoting indigenous design and manufacture of aircraft and aircraft components by acting as a catalytic
agent.
Approving training programmes of operators for carriage of dangerous goods, issuing authorisations for
carriage of dangerous goods, etc.

Bureau of Civil Aviation Security


The Bureau of Civil Aviation Security (BCAS) was initially set up as a cell in the Directorate General of Civil
Aviation (DGCA). The BCAS was reorganised into an independent department on April 1, 1987 under the
Ministry of Civil Aviation after the Kanishka Tragedy in June 1985. The main responsibility of BCAS is to lay
down standards and measures in respect of security of civil flights at international and domestic airports in India.
BCAS is headquartered in New Delhi and has four regional offices across India.

Function of BCAS
Laying down aviation security standards in accordance with the Chicago Convention of ICAO for airport
operators, airlines operators, and their security agencies responsible for implementing aviation security
service (AVSEC) measures.
Monitoring the implementation of security rules and regulations and carrying out survey of security needs.
Ensure that the persons implementing security controls are appropriately trained and possess all competencies
required to perform their duties.
Planning and coordination of aviation security matters.
Conducting surprise/dummy checks to test professional efficiency and alertness of security staff, mock
exercise to test efficacy of contingency plans and operational preparedness of the various agencies.

Central Industrial Security Force (CISF)


The police personnel requisitioned from state governments performed all the security functions at all the airports
in the country until January 2000. In the backdrop of hijacking of Indian Airlines aircraft (IC-814) in December
1999, the Ministry of Civil Aviation reviewed all airport security matters. It was decided that in order to ensure

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-7


effective control and supervision of the Ministry of Civil Aviation, airports security should be entrusted to a
single, dedicated force instead of different state police forces with divergent work culture and practices. The
Committee of Secretaries (CoS), in its meeting on January 7, 2000, recommended the need for a more
professionalised force for civil aviation in the long term. The Commissioner of Security (CA) further advocated
the Central Industrial Security Force (CISF) to be inducted at all airports in India. The dedicated CISF contingent
earmarked for aviation security functions at airports in India has been notified as aviation security group (ASG).
ASG is committed to providing a safe and secure environment at all the airports under its charge. The dual
objective of the ASG is to ensure safe air travel and a satisfying experience of airport security.

Airports Authority of India Ltd


Airports Authority of India (AAI) was formed on April 1, 1995 by an Act of Parliament. It came into being by
merging erstwhile National Airports Authority and International Airports Authority of India. AAI manages 127
airports, which include 16 international, 8 custom airports, 24 civil enclaves, and 79 domestic airports. AAI
provides air navigation infrastructure and air traffic services over 2.8 million sq nautical miles (NM). AAI also
participates in the joint ventures (JV) with private investors through the public private partnership (PPP) model.
AAI has revenue sharing agreement with the modernisation of Mumbai and Delhi airports. In addition, it has a
stake in the greenfield airport developed through the PPP route. They exercise influence on boards of these
companies and provide support to airport operators.

Main function of AAI


Control and management of the Indian airspace extending beyond the territorial limits of the country, as
accepted by the International Civil Aviation Organization (ICAO). Air traffic control (ATC), an arm of AAI,
controls the landing and departure of flights from airport control towers across all airports in India.
Design, development, operation and maintenance of international and domestic airports and civil enclaves.
Development and management of cargo terminals at international and domestic airports.
Providing passenger facilities and information system at the passenger terminals at airports.
Training of airport personnel: AAI operates four training institutes for human resource development and
manpower training in terminal management, air space management, air cargo, airport fire & safety services.
Airport audit, commercial and cargo services: AAI does annual performance audit at all airports. It provides
report on the economic viability of airport operations, which includes revenue from non-aeronautical
services. It has integrated cargo complexes at various airports to provide fast movement of perishable and
non-perishable goods.
Communication navigation surveillance (CNS)/air traffic management (ATM): AAI provides CNS/ATM
service facilities and support systems for air navigation to synchronise with ICAOs approved plans. Besides,
it provides air traffic management at various airports.
Provision of communication and navigational aids namely, instrument landing system (ILS), doppler very
high frequency omni-range (DVOR), distance measuring equipment (DME), radar, etc.
Project services: It provides various services like airport planning, airport construction and consultancy
services for airport feasibility studies, design of passenger terminals, cargo terminals, aircraft hangars,
runways, taxiways, airport lighting systems, etc.
Expansion and strengthening of operation area namely, runways, aprons, taxiways, etc

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Table 1: Brief financial of AAI
Particulars (in Rs million) 2003-04 2004-05 2005-06 2006-07 2007-08
Revenue 26,306 29,997 34,905 37,262 42,892
Expenditure 20,863 23,148 22,360 21,969 25,498
Profit before tax 5,440 6,848 12,544 15,293 17,393
Profit after tax 3,149 3,254 7,176 8,596 10,818
Networth 27,526 31,232 38,686 45,429 54,092
Reserves & Surplus 26,026 29,764 37,202 43,818 52,999
Source: CMIE & AAI

AAI derives nearly 30 per cent of its revenues from the route navigation facilities provided by the ATC. The
passenger service fee and the landing parking and terminal navigation fee each constitute 14 per cent of the
revenues. The revenue share from airports operated by private players under the PPP model form another 17 per
cent of the revenues of AAI.

Figure 1: Percentage breakup of AAI revenue for 2007-08

(per cent)

Route Navigation
Facilities Charges
Revenue from JVs
30
17

Others
10

Cargo Revenue
4
Commercial services
10 Landing, Parking &
Passenger Service TNL Fees
Fees 14
15

Source: AAI

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4.0 International player profile

Atlanta International Airport


Background
The official name of the Atlanta International Airport is The Hartsfield Jackson Atlanta International Airport. It
is owned by City of Atlanta (municipal authority of Atlanta city) and operated by the Department of Aviation.
Spread over an area of 4,700 acres, the Atlanta airport employs roughly 56,000 employees and its airport activity
generates more than $18.7 billion annually. It is the world's busiest airport in terms of passenger traffic, landings
and take-offs by aircraft.

Airport infrastructure and facilities at Atlanta airport


The terminal complex measures 130 acres (5.8 million square feet), with 151 domestic and 28 international gates.
The airports underground, automated people mover (APM), consisting of nine, four-car trains, connects all the
terminals. There are three main air cargo complexes including a perishable cargo complex. The total on-airport
cargo warehouse space measures two million square feet. The longest runway, of five runways at Atlanta Airport,
is 3,624 metres in length. The parking space can accommodate 29,334 vehicles. The Metropolitan Atlanta Rapid
Transit Authority (MARTA) and private vehicles and taxi connect the airport to the city.

There are 89 food and beverage outlets, 85 retail and convenience outlets covering an area of about 0.2 million
square feet. There is an executive conference centre in the airport, including 23 meeting rooms.

Figure 1: Percentage-wise break-up of operating Figure 2: Percentage-wise break-up of operating


revenue, 2002 revenue, 2008

(per cent) (per cent)

Parking, Car
rentals and Other
other 9
Other Landing fees
concessions
8 15
Landing fees 49
11

Terminal,
maintenance Parking, Car
Terminal,
buildings and rentals and
maintenance
other rentals other
buildings and
23 concessions
other rentals
32 53

Source: Atlanta International Airport website

Atlanta Airport has seen an increase in non-aeronautical revenue share as a percentage of total revenues from 49
per cent in 2002 to 53 per cent in 2008.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-11


Freight, passenger and aircraft movement
The total passenger movement for 2008 was stable at 90 million compared to 89.4 million passengers in 2007,
while the 5-year compounded annual growth rate (CAGR) in passenger movement is 3.0 per cent. The freight
movement declined from 720,209 tonnes in 2007 to 655,277 tonnes in 2008. The total aircraft movement
including take-off and landing at Atlanta Airport for 2008 was 978,824, registering a decline of 1.4 per cent
compared to the previous year. The 5-year CAGR of aircraft movement is 1 per cent.

Figure 3: Passenger movement and growth rate

(in million) (per cent)

95 8

90 6

85 4

80 2

75 0

70 -2
2002 2003 2004 2005 2006 2007 2008

Passengers Growth in Passenger Movement

Source: Atlanta international airport website

Figure 4: Freight movement and growth rate

(million tonnes) (per cent)


1.00 10
0.90
0.80 5
0.70
0.60 0
0.50
0.40 -5
0.30
0.20 -10
0.10
0.00 -15
2002 2003 2004 2005 2006 2007 2008

Freight Growth in Freight Movement

Source: Atlanta international airport website

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Figure 5: Aircraft movement and growth rate

(in million) (per cent)


1.05 8

6
1.00
5

0.95 3

2
0.90

0
0.85
-2

0.80 -3
2002 2003 2004 2005 2006 2007 2008

Aircraft Movement Growth in Aircraft Movement

Source: Atlanta international airport website

Frankfurt Airport
Frankfurt Airport is one of the world's most important air transportation hubs. It is spread over 19 square kilo
metres. The aerotropolis at Frankfurt Airport has more than 500 companies, 200 retail stores, three fire stations
and a clinic. Fraport is expanding Frankfurt Airport into Frankfurt Airport City an ideal real-estate location and
gateway of mobility.

Fraport AG, one of the leading groups of companies in international airport business, operates Frankfurt Airport.
The Fraport Group holds controlling stake in airports of Frankfurt, Lima, Antalya, Frankfurt Hahn, Burgas,
Varna and minority or management contracts in airports of Delhi, Cairo, Hanover and Saarbrucken. In addition to
covering the full range of airport services, Fraport AG is involved in airport retailing and real-estate development.

Table 1: Shareholding pattern as on December 31, 2008


Name of shareholder % of Shares
State of Hesse 31.6
Stadwerke Frankfurt am Main Holding Gmbh 20.2
Deutsche Lufthansa AG 10.0
Julius Br Holding AG 10.4
The Capital Group Companies, Inc. 1.9
Artisan Partners Ltd. Partnership 3.9
Taube Hodson Stonex Partners 3.0
Morgan Stanley 2.9
Arnhold and S.Bleichroeder Holdings. Inc. 3.0
Public 13.2
Source: Fraport Annual Report, 2008

Airport infrastructure and facilities at Frankfurt Airport


Frankfurt Airport was ranked third in Europe, following London-Heathrow and Paris Charles de Gaulle, in terms
of passenger arrivals and departures. The Airport was ranked first in Europe in terms of actual cargo handled.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-13


Frankfurt Airport City is spread over 20 million square feet. More than 70,000 people are employed in over 500
companies and government agencies, making Frankfurt Airport the largest employment location in Germany.

Approximately 23,000 people are employed by the Fraport Group in Frankfurt. Going forward, with expansion
plans, it is expected to create 1,00,000 additional jobs around the airport complex and 25,000 jobs directly at the
airport. MNCs like Deutsche Lufthansa AG, LSG Lufthansa Service GmbH and International Mail Center have
their operations in Frankfurt Airport City.

Frankfurt Airport City has an area of 316 acres for cargo handling operations. Its retail operation ranges from
duty-free products, food & beverage, fashion products and various travel related services.

Figure 6: EBITDA share of activities compared Figure 7: Revenue share of activities compared
to overall EBITDA to total revenue

(per cent) (per cent)

60 40

32
45

24

30
16

15
8

0 0
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

Aviation Operation Retail & Properties Aviation operation Retail & Properties
Ground Handling External Activities Ground handling External activities

Source: Fraport Annual Report, 2008 Source: Fraport Annual Report, 2008

Freight, passenger and aircraft movement at Frankfurt Airport


The total passenger movement in 2008 was 53.5 million compared to 54.1 million in 2007, registering a decline of
1.3 per cent. The 5-year CAGR in passenger movement is 2 per cent. The freight movement for 2008 was 2.04
million tonnes compared to 2.1 million tonnes in 2007. The 5-year CAGR in freight is 4 per cent. The total
aircraft movement in 2008 was 485,783 including take-off and landing compared to 492,569 in 2007. The 5-year
CAGR in aircraft movement is 1 per cent.

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Figure 8: Passenger movement and growth rate Figure 9: Freight movement and growth rate

(in million) (per cent) (million tonnes) (per cent)

57 8 2.5 16

6 2.0 12
54

4 1.5 8
51
2 1.0 4

48
0 0.5 0

45 -2 0.0 -4
2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008

Passengers Growth in Passenger Movement Freight Growth in Freight Movement

Source: Fraport website Source: Fraport website

Figure 10: Aircraft movement and growth rate

(in million) (per cent)


0.54 5

3
0.48

2
0.42
0

0.36
-2

0.30 -3
2002 2003 2004 2005 2006 2007 2008

Aircraft Movement Growth in Aircraft Movement

Source: Fraport website

Incheon International Airport (Seoul)


Background
Incheon International Airport is the largest airport in South Korea, and one of the largest and busiest in Asia. It is
located west of Incheon, on Yeongjong-Yongyu island on the west coast. It is connected to the mainland by
Incheon International Airport Expressway, a part of which is Yeongjong Bridge. The expressway also connects
Gimpo Airport and provides connections between domestic flight services with international air traffic, an
advantage that makes it far easier to travel from southern Korean regions to Incheon, and then to airports all over
the globe. The airport has received various laurels for airport service quality and inservice standards from ACI and
IATA, respectively.

After the Seoul Olympics of 1988, Gimpo International Airport (old airport) could not keep pace with the increase
in international air traffic. The Incheon airport was constructed on reclaimed land between Yeongjong Island and
Youngyu Island. It took 8 years to construct the airport, and an additional 6 months to test operate. The airport
was officially opened in March 2001. The total passenger movement at Incheon airport in 2008 was 29.9 million.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-15


Passenger facilities
The main passenger terminal is the largest in South Korea in terms of area and the third-largest passenger terminal
in the world measuring 496,000 square metres. It is 1,060 metres long, 149 metres wide and 33 metres high. Its
construction cost was 1.38 trillion South Korean Won (Rs 55 billion). The terminal has 120 arrival passport
inspection counters, 8 arrival security ports, 28 departure security ports, 252 check in counters and 120 departure
passport inspection counters.

The airport houses various cafeterias, pastry shops and bakeries, coffee shops, banks, restaurants, music stores,
book stores, beauty salons, supermarkets, pharmacies, duty-free shops, convenience stores and a currency
exchange centre. The baggage handling system at Incheon International Airport is designed to process 31,000
pieces of luggage per hour.

The Cargo terminal complex comprises three cargo terminals, five separate warehouses, 24 parking stands, and
administration offices. The cargo terminal complex is designed to process 1.7 million tonnes of cargo per year.

Incheon International Airport infrastructure current status and future plans


There are two parallel paved asphalt runways in operation; each runway is 3,750 metres long, 60 metres wide, and
1.05 metres thick. The third parallel runway 4,000 metres long, along with a 13 hectare cargo terminal area were
added in 2008. All runways are equipped with instrument landing system category (ILS CAT) IIIB at both sides
allowing for operation in visibility conditions as low as 50 metres.

The airport is served by frequent bus service from all parts of South Korea as well as by traditional ferry service
between Yeongjong pier and Incheon. Airport limousines operate round the clock from Seoul to Incheon, and
several backup highway buses escort people from places within and outside Seoul. Passenger mover system links
the main passenger terminal and is connected to the International Business Center (IBC).

The construction work of Phase 3 expansion of the airport is expected to start in the first half of 2011 and is
scheduled for completion in 2015. The third stage work on the airport involves expansion of the second passenger
terminal and the existing cargo terminal, and enlargement of the apron area. Besides this, roads, rail, and other
transportation connections to the second passenger terminal will also be expanded.

Further, at the end of phase IV, which is scheduled to be completed in 2020, the airport will be able to handle 100
million passengers and 7 million metric tonnes of cargo annually.

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5.0 Indian player profile

Bengaluru International Airport Ltd


Background
Bengaluru International Airport Limited (BIAL) is a public limited company formed to build, own and operate
Bengaluru International Airport. BIAL was awarded a contract to design, develop, finance, construct, operate and
manage the airport for a period of 30 years with an option to extend for a further period of 30 years. It is being
developed over an area of 4,000 acres of which 215 acres has been reserved for commercial real estate
development. The total capital expenditure for the project is Rs 24.7 billion. The first phase of the project was
completed in 2008 with the airport starting its commercial operations in May 2008, with a capacity to handle 11
million passengers. As per the concession agreement between the Ministry of Civil Aviation and Bengaluru
International Airport Ltd, 4 per cent of the gross revenue has to be shared with Airports Authority of India (AAI)
in the form of concession fee.

Table 1: Shareholding pattern


Name of shareholder % of shares
Siemens Project Ventures Ltd 40
Larsen & Toubro Ltd 17
Unique Zurich Airport 17
Karnataka State Industrial Development Corporation 13
Airport Authority of India 13
Source: BIAL website

2008-09 traffic at Bengaluru Airport


The total passenger movement, both international and domestic fell from 10.1 million in 2007-08 to 8.8 million in
2008-09, registering a decline of 13 per cent. However, passenger traffic has grown at a CAGR of 22.4 per cent
over the last 5 years, owing to strong growth in the preceding years.

Similarly, the total aircraft movement showed a degrowth of 8 per cent in 2008-09 compared to the previous year
with a 5-year CAGR of 17.5 per cent. The total freight movement decreased from 0.18 million tonnes in 2007-08
to 0.16 million tonnes in 2008-09, a degrowth of 11 per cent compared to the previous year. The CAGR in freight
for last 5 years is 11.5 per cent. The existing airport (HAL Airport) has the capacity to handle 3.6 million
passengers per annum.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-17


Figure 1: International & Domestic Passengers and growth rate

(in million) (per cent)


10 80

60
8

40
6
20
4
0

2
-20

0 -40
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Passengers Domestic Passengers

Growth in International Passengers Growth in Domestic Passengers

Source: AAI

Figure 2: Peak Passenger Movement - Monthly

in ('000) Nos
900

800

700

600

500

400

300

200

100

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Peak International Passengers - Monthly Peak Domestic Passengers - Monthly

Source: AAI

Figure 3: International & Domestic Aircraft and growth rate

in ('000) Nos (per cent)

120 60

45
90

30
60
15

30
0

0 -15
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Aircraft Domestic Aircraft


Growth in International Aircraft Growth in Domestic Aircraft

Source: AAI

B-18 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Figure 4: International & Domestic Freight and growth rate

in ('000) Tonnes (per cent)


120 60

45
90
30

60 15

0
30
-15

0 -30
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Freight Domestic Freight


Growth in International Freight Growth in Domestic Freight

Source: AAI

Infrastructure facility
The airport development master plan has been staggered across several phases. The initial phase was completed in
March 2008. The major developmental work carried out in the initial phase includes a passenger terminal for
domestic as well as international passengers, a 4,000-metre long runway, two major general cargo warehouses and
a car park.

The passenger terminal is a single, two-level building capable of accommodating international and domestic
operations. The total floor area is approximately 71,000 square metres. The terminal building is designed for a
peak hour passenger handling capacity of approximately 3,000 passengers. BIAL has a 4,000-metre runway, with
a width of 60 metres including shoulders; code 4 E, B - 747 compatible. The cargo complex has the capacity to
handle 3,00,000 tonnes of cargo annually while the airport complex has a parking facility for 2,000 cars.

Alliances

Table 2: BIAL has following tie-ups with a range of service providers


Function Service provider
Aviation fuel facility Indian Oil Skytanking
Into plane fueling service Bharat Petroleum Corporation Ltd (BPCL), ST Airport
Services Pte Ltd (STARS) and Indian Oil Skytanking
Cargo facility Two consortia of Singapore Air Terminal Services
(SATS)/Air India, and Bobba Group/Menzies Aviation
Ground handling Consortia of GlobeGround India and Air India/ SATS

Flight catering LSG SkyChefs and Taj SATS


Food & beverage operations HMS Host Corporation at both domestic and
international departures
Retail and duty-free Consortium of Nuance/Shoppers Stop
Hotel Oberoi Group under Trident Hilton brand
Airport advertising JC Decaux
Medical Columbia Asia
Landside traffic Central parking

Source: BIAL website

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-19


Future plans
BIAL, which started operations in May 2008, had intended to start Phase II of its construction plan in early 2009;
however, it was postponed as passenger traffic world over began to decline due to the global meltdown. Phase II,
which includes a second terminal and a runway, will now be planned only in the forthcoming year.

GMR Hyderabad International Airport Ltd


Background
Rajiv Gandhi International Airport is Indias first greenfield airport developed through public private partnership
initiative between the GMR Group, Malaysia Airport Holdings Berhad, Government of Andhra Pradesh and
Airports Authority of India. The total area dedicated for the project is 5,495 acres. As per the concession
agreement between Ministry of Civil Aviation and GMR Hyderabad International Airport Ltd (GHIAL), 4 per
cent of the gross revenue has to be shared with AAI in the form of concession fee.

Table 3: Shareholding pattern


Name of the shareholder Share holding pattern (%)
GMR Group 63
Government of Andhra Pradesh 13
Airports Authority of India (AAI) 13
Malaysia Airports Holdings Berhad (MAHB) 11
Source: GHIAL website

2008-09 traffic at Hyderabad airport


The total passenger movement of Hyderabad airport for 2008-09 was 6.2 million including domestic and
international passengers, registering a decline of 11 per cent compared to 2007-08. The 5-year CAGR in
passenger traffic is 23 per cent. The total aircraft movement was 80,880 in 2008-09. The 5-year CAGR of aircraft
movement is 24 per cent. The total freight movement in 2008-09 was 54,245 tonnes, registering a growth of 7.2
per cent compared to the previous year. The CAGR growth in freight for the past 5 years is 15 per cent.

Figure 5: International & Domestic Passengers and growth rate

(in million) (per cent)


8 60

50

6 40

30

4 20

10

2 0

-10

0 -20
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Passengers Domestic Passengers

Growth in International Passengers Growth in Domestic Passengers

Source: AAI

B-20 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Figure 6: Peak passenger movement - Monthly

in ('000) Nos

600

450

300

150

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Peak International Traffic - Monthly Peak Domestic Traffic - Monthly

Source: AAI

Figure 7: International & Domestic Aircraft and growth rate


in ('000) Nos (per cent)

80 50

40
60
30

40 20

10
20
0

0 -10
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Aircraft Domestic Aircraft


Growth in International Aircraft Growth in Domestic Aircraft

Source: AAI

Figure 8: International & Domestic Freight and growth rate

in ('000) Tonnes (per cent)


40
70

30
50

20
30

10 10

0 -10
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Freight Domestic Freight


Growth in International Freight Growth in Domestic Freight

Source: AAI

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-21


Current capacity
GHIAL airport at Shamshabad, Andhra Pradesh, has the capacity to handle 12 million passengers at the existing
terminal and 1,00,000 tonnes of freight per annum at its automated cargo terminal. Currently, the airport has
Indias longest runway with a length of 4,260 metres, width of 60 metres and a shoulder of 7.5 metres. The airport
is capable of handling the super jumbo, A-380. There are 130 check-in counters at the airport, of which 16 are self
check-in kiosks. In all, there are 46 immigration counters for faster immigration clearance.

The terminal has an area of 1,17,000 square metres, with a peak hour passenger handling capacity of 3,200. The
area of the apron (area set aside for loading, unloading and maintenance of aircraft) is 1,37,000 square metres,
with ILS CAT 1 airfield ground lighting facility.

Retailing
GHIAL has plans to house some of the best international brands and products ranging from perfumes, cosmetics,
fashion accessories, confectionary, destination products, apparel, etc, competing with some of the top international
airports. For the development of the retail duty-free area, the company has appointed Nuance-Shoppers Stop
consortium after a competitive bidding process. Landmark and Odysseys have set up bookstores at the airport,
offering options to passengers. The airport operator has taken care to ensure the availability of high-end and mid-
range brands with different price points for catering to all categories of passengers.

Food and beverage


Rajiv Gandhi International Airport has a wide range of food and beverage counters at arrival, departure areas of
the terminal building and the airport village. GHIAL has tied up with many international brands like HMS Host,
Blue Foods Pvt Ltd, Caf Coffee Day, Hard Rock Caf, Cookie Man, providing a wide range of eating options for
customers.

Banks and money changing facilities


Axis, HDFC, Kotak, Vijaya, Canara and ING Vysya banks offer ATM services at various levels of the airport.
Foreign exchange/money changing facilities are being offered by Travelex India Pvt Ltd and Weizmann Forex
Ltd.

Other facilities
Apollo Hospitals will provide medical facilities at the airport. This will serve as an emergency treatment centre
capable of handling any medical condition of passengers while in the airport premises.

Thomas Cook provides travel services like travel assistance and solutions, tour operator services, flight bookings,
rail bookings, hotel bookings, visa, passport assistance and travel insurances at the airport.

Avis, Hertz and Budget provide car rental services at the airport. Leading service providers like V Link and Easy
Cabs provide Radio Taxi service at the Rajiv Gandhi International Airport for the convenience of passengers.
GHIAL makes available air-conditioned bus services to and from various locations in the city at reasonable costs
for improving connectivity to the airport and reducing costs for price sensitive passengers.

B-22 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Secure Wrap offers wrapping services to passengers, for shielding luggage at various levels of the airport.

Future plans
GMR Hyderabad International Airport Ltd (GHIAL) and MAS Aerospace Engineering (MAE), a wholly owned
subsidiary of Malaysia Airlines, have signed an agreement to set up a 50:50 joint venture Airframe Maintenance,
Repair and Overhaul (MRO) Company in Hyderabad.

The JV Company, known as MAS-GMR Aerospace Engineering Company Ltd., will be built on the eastern side
of the Rajiv Gandhi International Airport, Hyderabad.

The facility will cater to both narrow and wide-bodied aircraft checks; it will be operational by the third quarter of
2010. Built specially to service aircrafts in the Indian subcontinent, the facility will have the capacity to service
between 60-80 aircrafts annually.

Table 4: GHIAL has the following tie-ups with a range of service providers
Function Service provider
Cargo operations Menzies Aviation Plc, UK
Fuel farm Reliance Industries
Flight catering LSG & Sky Gourmet
Business hotel Accor Group with Novotel brand
Aircraft MRO Lufthansa Technik, Germany and Air India
Ground handling AI , IA & SATS and Menzies & Bobba Aviation
Car parking Tenaga Parking, Malaysia
Retail fuel operator within the airport for non-aviation fuel Bharat Petroleum
Medical centre Apollo Hospital
Duty-free shopping Nuance AG, Switzerland & Shoppers Stop
Advertising Laqshya Media Pvt Ltd
Food & beverages HMS Host, Blue Foods Pvt Ltd, Cookie Man (Add others if present)
Aviation academy Sabena Flight Academy, Belgium
Coffee shop Caf Coffee Day, Hard Rock Cafe
Telecom services Tata Teleservices
Source: GHIAL website

Cochin International Airport Ltd


Background
Cochin International Airport Limited (CIAL) is the first greenfield airport under public-private partnership with
equity participation from the government of Kerala, industrialists, non-resident Indians (NRIs), financial
institutions, airport service providers and the public. CIAL is the first international airport in India outside the
ambit of the government of India. It is spread over 1,300 acres of which 800 acres is utilised for airport facilities
and 500 acres is planned for aviation and city infrastructure around the airport. The total capital expenditure
involved was Rs 2,830 million. CIAL began operations in 1999.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-23


2008-09 traffic at Cochin airport
The total passenger movement at CIAL was stable at 3.4 million in 2008-09 as compared to the previous year.
The total aircraft movement registered a growth of 5 per cent in 2008-09 compared to the previous year while the
5-year CAGR for the same is 20 per cent. Total freight movement in 2008-09 was 31,153 tonnes, registering a
growth of 23 per cent. The 5-year CAGR in freight movement is about 14 per cent. Passenger growth in Cochin
airport is driven by the presence of high expatriate population and tourist movement.

Figure 9: International & Domestic Passengers and growth rate

(in million) (per cent)

2.5 60

45
2.0

30
1.5
15
1.0
0

0.5
-15

0.0 -30
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Passengers Domestic Passengers


Growth in International Passengers Growth in Domestic Passengers

Source: AAI

Figure 10: Peak passenger movement - Monthly


in ('000) Nos
250

200

150

100

50

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Peak International Passenger - Monthly Peak passenger movement - Monthly

Source: AAI

B-24 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Figure 11: International & Domestic Aircraft and growth rate

in ('000) Nos (per cent)


28 80

60
21

40
14
20

7
0

0 -20
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Aircraft Domestic Aircraft

Growth in International Aircraft Growth in Domestic Aircraft

Source: AAI

Figure 12: International & Domestic Freight and growth rate

in ('000) Tonnes (per cent)


30 80

25
60

20
40
15
20
10

0
5

0 -20
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Freight Domestic Freight


Growth in International Freight Growth in Domestic Freight

Source: AAI

Infrastructure facilities and handling capabilities at CIAL


CIAL has a 3,400 metre long, 45 metre wide, Code E category runway, which has a CAT 1 lightning facility. It
has an apron to accommodate 14 parking bays including A-380 compatible bay. The domestic terminal has an
area of 0.1 million square feet to cater to peak hour capacity of 400 incoming and 400 outgoing passengers. The
international terminal has an area of 0.5 million square feet with peak hour handling capacity of 1,200 incoming
and 1,200 outgoing passengers. There are 45 check-in counters; an arrival duty-free shop occupying an area of
13,000 square feet and the same for departure area spreading over 2,000 square feet.

The parking area can accommodate 2,000 vehicles. In addition, it has a state-of-the-art centre for perishable cargo,
which has the capacity to handle 30,000 tonnes annually. CIALs air cargo facility is capable of handling 75,000
tonnes per year.

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-25


Alliances

Table 5: CIAL has the following tie-ups with service providers


Function Service provider
Duty-free shops Alpha Retail
Refueling Bharat Petroleum Corporation Ltd (BPCL)
Ground handling Air India
Source: CIAL website

Future plans
CIAL has plans to develop a full-fledged airport city (Aerotropolis), surrounding the airport with state-of-the-art
facilities. The master plan envisages the establishment of aircraft maintenance repair and overhaul facility,
aviation academy, star/budget hotels, 18-hole golf course, convention/exhibition centre, logistics centre,
amusement park, cultural village, etc. Besides these, the company has earmarked a sizeable part of land for
developing an advanced information technology (IT) park. The proposed aerotropolis is set to come up on 450
acres of land.

Table 6: Proposed city-side development


Facility Function
MRO (maintenance, repair & overhaul) MRO services to be provided through SPV, Cochin International
Aviation Services Ltd (CIASL)
Aviation academy Graduate programmes in aircraft maintenance & airport operations

Other educational institutes are being planned at the airport


Industrial park To cater to IT/ITeS, biotechnology and other knowledge-based
industries. It will be developed in four phases with a total
developmental area of 4 million sq ft
Shopping & entertainment Shopping malls with food courts, entertainment and amusement parks
are being planned
Logistic An integrated logistic park is also proposed
Hospitality 5- and 3-star hotels along with convention centre have been planned

A super speciality hospital spanning over 25 acres is also planned in


the aerotropolis

A 18-hole golf course has also been planned


Source: CIAL website

Delhi International Airport Ltd


Background
Delhi International Airport Limited (DIAL) is a consortium led by GMR Group, comprising Airports Authority of
India, Fraport AG, Eraman Malaysia and India Development Fund. DIAL is working towards the modernisation
and restructuring of the Indira Gandhi International (IGI) Airport. DIAL has been given the mandate to operate,
maintain, develop, design, construct, finance, upgrade and modernise IGI airport for a period of 30 years until
2036, with a further option to extend it by 30 years. It is spread over 5,000 acres for which 4,750 acres are
reserved for aeronautical services while 250 acres is planned for non-aeronautical activities. The total capital
expenditure likely to be incurred is Rs 90 billion. DIAL has to share 45.99 per cent of revenue with Airport
Authority of India (AAI).

B-26 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Table 7: Share holding pattern
Name of shareholder Share holding pattern (%)
GMR Group 54
Airports Authority of India 26
Fraport 10
Eraman Malaysia 10
Source: DIAL website

2008-09 traffic at Delhi airport


The total passenger movement, both domestic and international, in 2008-09 was 22.8 million, compared to 23.9
million in 2007-08, registering a decline of 5 per cent. The 5-year CAGR in passenger movement is 17 per cent.
The total aircraft movement registered a 2 per cent increase in 2008-09 while the CAGR in aircraft movement for
the past 5 years is 16 per cent. Freight movement in 2008-09 was 0.42 million tonnes compared to 0.43 million
tonnes in the previous year, registering a decline of 2 per cent. The 5-year CAGR in freight movement is 8 per
cent.

Figure 13: International & Domestic Aircraft and growth rate

in ('000) Nos (per cent)


200 30

25
160
20
120
15

10
80
5
40
0

0 -5
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Aircraft Domestic Aircraft

Growth in International Aircraft Growth in Domestic Aircraft

Source: AAI

Figure 14: International & Domestic Freight and growth rate

in ('000) Tonnes (per cent)

320 25

20
240
15

160 10

5
80
0

0 -5
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Freight Domestic Freight


Growth in International Freight Growth in Domestic Freight

Source: AAI

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-27


Figure 15: International & Domestic Passengers and growth rate

(in million) (per cent)

18 40
16 35
30
14
25
12
20
10 15
8 10
5
6
0
4
-5
2 -10
0 -15
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Passengers Domestic Passengers


Growth in International Passengers Growth in Domestic Passengers

Source: AAI

Figure 16: Peak passenger movement - Monthly

in ('000) Nos
2000

1500

1000

500

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Peak International Passengers - Monthly Peak Domestic Passengers - Monthly

Source: AAI

Infrastructure development progress at IGI Airport


The airport is being developed in 5 phases. At the end of the first phase, DIAL will be capable of handling 37
million passengers per annum (mppa). This phase is likely to be complete by March 31, 2010, before the
Commonwealth Games in Delhi. The EPC contract for the airport is awarded to L&T for Rs 54 billion.

Construction of new terminal building T1 and modernisation of the existing terminal T2 were completed under
Phase 1 in December 2008. The new terminal building T1 has an area of 3,50,000 square feet with a capacity to
handle 10 million passengers. It also includes 72 check-in counters, 16 security Channels and an in-line baggage
screening facility.

The modernisation of terminal T2 (international terminal) has increased its annual capacity from 5 million
passengers to 8 million passengers. It has also added/expanded the following facilities to its infrastructure:

Added a 3-level in-line baggage screening and handling system


Increased the length of 4 Baggage Reclaim belts
Increased the number of entry gates from 4 to 8

B-28 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Increased the number of check-in counters from 78 to 100
Expanded the check in space from 4,500 square metres to 6,500 square metres
Increased the no of X-ray units from 8 to 15
Increased the emigration counters from 28 to 52
Increased the immigration counters from 28 to 48
Increased the security channels from 10 to 22
Added 8 new in-line Baggage Screening Systems.

In addition to the passenger terminal, a new runway, 4,430 metres in length, Code F, A-380 compliant and CAT
III B lightning facility was also constructed.

The construction of a new terminal (T3) is currently being carried on and is expected to be completed by March
2010. T3 will be capable of handling 34 million passengers per annum and will have an area of 5.2 million square
feet.

Terminal T3 will include 168 check-in and self check-in counters, 146 immigration counters and high speed metro
link from the city centre. It will also accommodate 4,300 vehicles along with a wide range of restaurants,
shopping and recreation facilities.

A total of 45 acres of land will be developed in Phase I, of which 39 acres is being developed for hospitality
services. The airport complex is being designed to handle capacity of 100 million passengers per annum at the end
of 5 phases.

DIAL is also planning to develop an Aerocity around the Delhi airport, which will feature hotels, convention
centres, malls and other business and recreational facilities for travellers. A total of 3,000 rooms, including budget
hotels, are planned along the airfield complex.

Table 8: Major capital expenditure plans


Proposed Capacities Phase I (completion Phase V (completion
date-2010) date-2035)
Pax capacity 46 Mn 100 Mn
Cargo capacity 0.5 Mn tons 3.6 Mn tons
Runways 2 4
Passenger Terminal Building Area 5.5 Mn Sq. ft. 17.2 Mn. Sq. ft.
Source: DIAL website

Alliances

Table 9: DIAL has following tie-ups with a range of service providers:


Function Service provider
Duty-free/ retail shop Alpha Airport
Duty-free/ retail T3 Aer Rianta (2010 onwards)
Airport advertising Times Innovative Media Pvt Ltd
Ground handling MenziesBobbaand Combata, WFSand Bird Group
Car parking Garuda Aviation Services Pvt. Ltd. (T2)Mahesh & Sunny Car Park (T1)
In flight kitchen Ambassador
Hospitals Apollo
Food and beverage Cookie Man, Baskin Robbins, Yo-China, McDonalds, Nirulas, Buno & Kaffa
Source: DIAL website

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-29


Mumbai International Airport Ltd
Background
Mumbai International Airport Pvt Ltd (MIAL) is a joint venture company formed in 2006 by GVK-led consortium
and AAI to develop, manage and modernise Chhatrapati Shivaji International Airport (CSIA) at Mumbai. MIAL
has been given the mandate to operate, maintain, develop, design, construct, finance, upgrade and modernise
CSIA for a period of 30 years with a further option to extend it by 30 years. The total capital expenditure likely to
be incurred will be about Rs 96 billion. MIAL has to share 38.7 per cent of its revenue with AAI. Mumbai airport
spans over roughly 1,960 acres of land.

Table 10: Share holding pattern


Name of shareholders Share holding pattern (%)
GVK Airport Holding Pvt Ltd 37
Bid Services Division (Mauritius) Ltd 27
Airport Authority of India 26
ACSA Global Ltd 10
Source: CSIA website

2008-09 traffic at Mumbai airport


The total passenger movement including both international and domestic for 2008-09 was 23.44 million,
registering a decline of 9 per cent compared to the previous year. The CAGR of passenger movement for the past
5 years is 14 per cent. The total aircraft movement in the period was 0.22 million compared to 0.23 million in
2007-08, marginally declining by 2 per cent. The CAGR of aircraft movement is 11 per cent for the past 5 years.
The total freight during 2008-09 was flat at 0.53 million tonnes as compared to 2007-08. CAGR in freight, for the
past 5 years, is 10 per cent.

Figure 17: International & Domestic Passengers and growth rate

(in million) (per cent)


20 40
18
16
25
14
12
10 10
8
6
-5
4
2
0 -20
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Passengers Domestic Passengers


Growth in International Passengers Growth in Domestic Passengers

Source: AAI

B-30 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW


Figure 18: Peak passenger movement - Monthly
in ('000) Nos
2000

1500

1000

500

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Peak International Passengers - Monthly Peak Domestic Passengers - Monthly

Source: AAI

Figure 19: International & Domestic Aircraft and growth rate

in ('000) Nos (per cent)

200 25

20
160
15
120 10

80 5

0
40
-5

0 -10
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Aircraft Domestic Aircraft


Growth in International Aircraft Growth in Domestic Aircraft

Source: AAI

Figure 20: International & Domestic Freight and growth rate

in ('000) Tonnes (per cent)


400 45
40
320 35
30
25
240
20
15
160
10
5
80 0
-5
0 -10
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

International Freight Domestic Freight


Growth in International Freight Growth in Domestic Freight

Source: AAI

CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW B-31


Expansion work at CSIA
The project envisages upgradation of infrastructure at CSIA to cater to traffic of 40 million passengers and one
million tonnes of freight cargo per year by 2010. The EPC (engineering, procurement and construction) work is
being carried out by L&T.

The implementation of the master plan is divided in two phases:


Interim phase which was completed in 2008
Phase 1 which is likely to get completed by 2010.

Under the interim phase, refurbishment of Terminal 2 and upgradation of airside runway facilities such as rapid
exit taxiways were undertaken. As a part of the refurbishment process, a plush new food court was inaugurated on
October 3, 2008 at Terminal 2.

Further, in November 2008, a new taxiway N9 was inaugurated. The location of this taxiway has been aptly
designed to facilitate all wide-body aircrafts to vacate the runway after landing with ease. Moreover, N9 would be
the first compliant taxiway for Code-F aircraft (such as A-380 and others alike) at CSIA that requires the width of
the taxiway to be 25 metres and shoulders 17.5 metres on each side. Its length is 180 metres. With the extended
parallel taxiway A4 and taxiway N9 in place, runway occupancy time for aircraft landing and taking off, is likely
to be reduced considerably.

Major infrastructure work to be undertaken in phase 1:


Creation of a brand new terminal building (T2) at Sahar, catering to both international and domestic
passengers
Building new cargo facilities
Enhancement of airside facilities by shifting the air traffic control tower and construction of a parallel taxiway
Construction of a dedicated link from Western Express highway to Terminal 2 at Sahar.

Also, parking at the airport is proposed to be increased to 12,000 vehicles by 2010 compared to the current
capacity of 3,600 vehicles.

The construction of the new terminal building (T2) at Sahar is already underway. On completion, the new
terminal building will cater to both domestic and international passengers, with a capacity to accommodate 40
million passengers per year operating 24 hours a day. The terminal building will have a total floor area of nearly
4.3 million square metres spread across four levels. The other key features of the terminal are 52 Contact positions
with Passenger Boarding Bridges, 184 Check-in counters, 14 Reclaim Belts and 700,000 square feet of Retail,
F&B, Lounges and Travel Services.

Alliances

Table 11: MIAL has tie-ups with the following service providers
Function Service provider
Duty-free shops DFS Galleria
Retail Aldeasa ITDC
Food & beverage Caf Coffee Day, Ritazza, Hot Dog
Source: CSIA website

B-32 CRISIL RESEARCH AIRPORT INFRASTRUCTURE ANNUAL REVIEW