Report on Air cargo.IGI Airport

A STUDY ON AIR CARGO AT DELHI AIRPORT SBS/SMU07MBA-1172

A CASE STUDY ON AIR CARGO AT DELHI AIRPORT

SUBMITTED BY:

ARVIND KUMAR PANDEY

09811916653

GUIDED BY:

PROF. P. S. SENGUTTUVAN

Associate General Manager

(Economic Planning and Research Department)

Airports Authority of India

Indira Gandhi International Airport

JULY 2008

Master of Business Administration

(Finance)

Skyline Business School

Gurgaon.

SKYLINE BUSINESS SCHOOL PAGE NO.: 1


Acknowledgment

In the first place, I would like to express my sincere appreciation and gratitude to all those who gave me the possibility to complete this training. I want to thank Mr. PRAVEEN PURI, Director (Skyline Business School) for giving me permission to have training with GMR at international Airport New Delhi.

I have furthermore to thank Prof. P. S. SENGUTTUVAN, Associate General Manager (Economic Planning and Research Department), Airports Authority of India for his support and encouragement during the more than 7 days of this project work. He has provided for an optimum working environment at the cargo terminal.

I am also indebted to Mr. Ajay Sharma for leading the whole team in Export Section.

I am very grateful to Mr. Sunil Sharma and his group at Cargo terminal for explaining the whole process of Export cargo. I also extend my appreciation to all staff members of the Cargo section for their assistance and support.

I am thankful to Airport authority for allowing conducting survey at cargo terminal. I am thankful to Custom and Jack department at cargo for helping me in collecting data. I would like to thank my whole time who has worked with full force to complete this training at given time.

Thank you

Arvind kumar Pandey



EXECUTIVE SUMMERY

Airport developers, such as GMR, GVK and CIAL, would now have to provide comprehensive cargo facilities at all new greenfield airports. The government is planning to make this condition mandatory in the proposed air cargo policy which is to be finalised within three months. For business reasons, many developers are already building cargo facilities, however, they are not bound to do so. The proposed policy will also stipulate dedicated cargo area at all existing airports, including those being developed by private operators. A consultant may be brought on board for advising on making cargo facilities mandatory in the new policy. Airport developers would also shoulder the responsibility of suggesting measures for reducing dwell time at airports. A separate system to speed and spruce up ground handling facilities would also be suggested by the consulting firm. "The new policy document will be shared with all stakeholders before being finalised by the government," K N Srivastava, joint secretary, ministry of civil aviation had said at a meeting with the industry. End-users will also be consulted at the concept and design stage for setting up new terminals. Through the policy, the government wants to ensure that cargo operations and terminals at all airports (AAI, PPP and private) are efficiently run and charges remain reasonable for freight forwarders, an official said. Air freight, both domestic and international, is growing rapidly in India. Total international cargo is expected to go up from 1020 tonne in 2006-2007 to 1,745 tonne by 2011-2012, growing by more than 70%. Domestic air cargo movement is also expected to go up 56% from 528 tonne in 2006-07 to 828 tonne in 2011-2012. The government had asked an inter-ministerial group (IMG) under the chairmanship of civil aviation secretary Ashok Chawla to find ways to reduce dwell time at airports. Meanwhile, the civil aviation ministry asked all airport operators, including GMR group-led Delhi International Airport Ltd (DIAL), to reduce free period for import cargo to 72 hours from five working days. It has also reduced free period for airlines for export cargo to 48 hours from four working days. While dwelling time for imported cargo in Singapore is 12 hours, at Delhi airport it takes 165 hours. At Sharjah airport, the dwell time for export cargo is a mere four hours.

GMR Group entered into a consortium with Fraport AG (Europe's largest cargo hub and second largest passenger airport), Frankfurt Airport Services Worldwide (owners and managers of Frankfurt Airport) and the India Development Fund (an IDF AMC managed fund) to bid for the restructuring and modernization of the Delhi and Mumbai airports. DIAL is a consortium of GMR Group (50.1%), Airports Authority of India (26%), Fraport & Eraman Malaysia (10% each) and IDF (3.9%). GMR is the lead member of the consortium, Fraport AG will be the airport operator and IDF, the financial investors.

Development Agreement, or the OMDA, on April 4, 2006 with the AAI. The initial term of the agreement is 30 years. Not less than three years prior to the end of such 30-year period, DIAL may, at its option, either extend the concession for another 30 years or exercise its right to require the Government of India to purchase the airport in accordance with the terms of the long-term agreement.



CONTENTS

Particulars Page No.

Introduction 06

Objective 07

Mechanization 11

Operations 14

Equipments 22

Scope 26

Importance 18

Problems 32

Solutions 33

Conclusion 34

Bibliography 36



LIST OF FIGURES

Fig. No. Page No.

1. Export Wing 14

2. Major factors affecting Indian Export 15

3. Timings 15

4. Export price adjusted for Inflation 16

5. Productivity Growth in India 17

6. World Air Traffic 27

7. Top 10 Airlines of World Wide Air cargo 30



INTRODUCTION OF AIR CARGO

The Department of Cargo with 157 Professional Executives, with average of 10 years, has grown gradually with establishment of Gateway Air Cargo Terminals at Kolkata (1975), Chennai (1978) & Delhi (1986). The capacities have been augmented keeping pace with air cargo growth.

The Integrated Air Cargo Terminal at Delhi provides for export/import transit cargo handling facilities. The Cargo Management System here has been upgraded to a fully computerized "On Line'' Integrated Cargo Management system with Electronic Data Interchange (EDI) and Bar Coding Capabilities. The Cargo Management Systems at Mumbai, Chennai & Kolkata are also computerized though not yet "On Line system''. At Delhi, the Multi level ETV system for handling loaded pallets & containers is being augmented by an additional ETV system enhancing the present 284 slot capacity by almost 50 per cent.

A perishable Cargo handling terminal with `Pre-cooling' chambers, independent chambers for Fruits, Flowers, Frozen Products etc., has been in operation at Delhi. A much bigger Perishable Cargo Terminal is planned at Mumbai Airport where perishable cargo constitutes 40% of total air cargo.

AAI Air Cargo Terminals provide for Truck Docks, Strong Rooms, Live Animal Sheds, Hazardous Cargo Godown, and Palletisation Station, Offices for Airlines, Government Regulatory Agencies, Multi-model Cargo Operators, Break Bulk Agents, and Consolidators for ease of operation and user convenience. To meet safety standards CCTV Systems, X-rays Scanners etc., are provided. Modern cargo handling equipment like cranes, forklifts, high mast stackers, power Pallet trucks etc are used for the Cargo handling. Also available is a state-of-the-art centre for export perishable Cargo likes flowers, fruits, vegetables and meat. Six wide-bodied aircrafts can be parked simultaneously in an exclusive Apron area in front of the Cargo terminal.

The gateway airport cargo terminals together are capable of handling One Million Tonnes of import/export/transit cargo annually. Present capacity utilization is about 75%-80%.

The Cargo Terminal at Indira Gandhi International Airport, New Delhi, was commissioned in



1986 for the processing of import, export and transshipment cargo and unaccompanied baggage. Spread over an area of 27 acres, it was the first semi-mechanized terminal in India to have two Elevated transfer Vehicles (ETV) with 3 level stacker positions (348 slots) for the storage and retrieval of built-up containers and pallets. IGIA’s Cargo Terminal provides a wide range of facilities under one roof at par with any international airport. The Terminal has two wings, one for Exports and one for Imports plus a remote unit for the disposal of unclaimed cargo.

The design and construction of all air cargo terminals has been undertaken by Planning & Engineering Departments of AAI in liaison with Cargo Department. Feasibility study for Air Cargo Terminal at Kathmandu, Nepal was undertaken by AAI. AAI is capable of undertaking not only design, development and construction of cargo terminals, but also management and operations.

OBJECTIVE

Special attention needs to be given to the speedy handling of cargo and reducing its dwell time. The objective will be to reduce dwell time of exports from the present level of 4 days to 12 hours, and of imports for the present level of 4 weeks to 24 hours to bring us in line with internationally achieved norms. cargo clearance will be on 24-hour basis.

Infrastructure relating to cargo handling like satellite freight cities with multi-modal transport, cargo terminals, cold storage, automatic storage and retrieval systems, mechanised transportation of cargo, computerization and automation, etc., will be set up on top priority basis. Such facilities have to come up at smaller places too.

The Electronic Data Interchange systems will be developed and linked amongst all stake-holders in the trade.

We can define it as Commercial and Economical objective as:

COMMERCIAL:

Economic viability of airports has assumed utmost importance and the trend to privatize airports and make them economically self-sustained have gained worldwide momentum. The capital intensive nature of airport establishment throws up challenges of unprecedented magnitude to generate revenues to sustain operations and maintain growth.

With limited scope for enhancement in traffic related revenue, the emphasis world over has been to increase the non-traffic revenue by increased commercial exploitation of available airport infrastructure, improved and competitive passenger shopping facilities, advertisements etc. are subjects necessitating professionalism in managing commercial aspect of an airport.

From non-traffic revenue of 10-15% of total AAI revenue in early 90s, the AAI has moved to a regime of non-traffic revenue in the range of 20-30% of total revenue while the British



Airport Authority (BAA) generates 70% of its revenue from non-traffic sources. Cargo revenue has seen a growth of almost 300% in last 5-6 years.

AAI has over the last 10 years or so developed a team of experts in the field of commercial aspects and based on the experience gained, can provide assistance to other airport operators in improving the financial viability of the airports.

ECONOMICAL

Globalization and trade liberalization has spin out to be the driving force of economic growth worldwide. In Asia, it has harbingered an unpresented period of high economic growth and export competitiveness. In the transition economies, it is well determined to dramatic confirmation of major doctrinal shift from past command economic system to a competitive market economy. In the today’s globalized village, the test of industrial performance lies in measuring the capacity of firms to meet the benchmarking levels of competitiveness set by the world markets.

Air cargo is playing an imperative role in the value chain of global transport and logistic, which in turn attracts cargo market to grow four to five folds by 2020 surpassing passenger’s traffic growth. The ongoing deregulation of aviation market is having the effect of accelerating the growth trend, in increasing global trade. As a result, this would create competition between airports and become fierce in the air cargo market. Air cargo is concentrated at few major and non-major metro airports as compared to passenger’s traffic. The top 100 major global airport accounts 85.0 to 90.0 per cent of the world’s total cargo. The first top 30 largest airports worldwide share around 70.0 per cent.

The primary demand drivers of worldwide airfreight traffic growth are –

Economic growth Globalization Lean inventory strategies

Air cargo industry is undergoing qualitative change in the present trend of world economy. Cost efficient cargo transportation is essential for promoting trade, creating new market opportunities and improving the productivity of manufacturing industries and agricultural commodities. The world airborne cargo is projected to grow 6.5 per cent per annum for the next 20 years. World air cargo traffic excluding CIS & Baltic nations would ascend triple times over the next 20 years, increasing from 137.10 billion RTK’s to 470.00 billion RTK’s in 2019. More than 40.0 per cent of the global trade is carried by air transport. Air cargo is an industry worth over US $ 200 billion a year carries approximately above 60 million tonnes of goods yearly.For airlines, cargo is a $55-billion business that generates 12% of their revenue. More broadly, air cargo transports 35% of the total value of goods traded across borders. No wonder, an equivocal demand has emerged from interested parties—cargo airlines, freight



forwarders and ground handling agents—to bring in greater efficiency in air cargo, which could have broad implications across the global economy. Towards this, an initiative undertaken by the International Air Transport Association (IATA) is laudable.

Air cargo is lifeline through its activity to deliver the perishable commodities and manufacture red goods. Today air cargo business generates employment opportunities in the primary, secondary and tertiary sectors. Developing economies has become a major player in the world trade due to growth in the air cargo business. It has contributed to foster trade and development in merging with many industrialized economies. The share of world trade with developing nations has soared from 25.0 per cent to 35.0 per cent. In 2004, almost 97.0% of the world airfreight are moved to and from within three pillars (Asia, Europe and North America) of the world economy.

Relationship of Air Cargo to Trade and GDP

The relationship of air cargo and trade and GDP are having a direct relationship and they are interdependent. Air cargo enables nations, regardless of location to efficiently connecting to distant market and global supply chains in a speedy, reliable manner. Thus in the new speedy logistic era, nations with good air cargo capability have competitive trade and development advantage over those without such capability. Competitive advantage, as Michael Porter and others have documented fundamental for growth. From the above references, there is well-established correlation between air cargo and GDP growth. The historical relationship between airfreight and GDP by world region from 1980 to 2000 reveals that there is a close relation between three. For example, the World Bank study 2000 reveals the relationship between the worlds GDP to world airfreight predicts close with approximately 97.0% accuracy. Since, these two are mutually causal, and they are highly interdependent.

Business rules are being distorted by the convergence of globalization, digitization, aviation and time based competition

Development policies such as Dubai Airport Free Trade Zone (which allows 100.0% foreign ownership of companies, tax holidays to companies for 30 years and posses no duties on exported goods) have made Dubai appealing to companies who wish to locate positions of their global supply chain there, as well as capitalize on Emirates Airlines, which is rapidly expanding networks and Dubai’s strategic location in growing Europe-Asia air cargo distribution networks.



Financing of Airport Infrastructure

1. It has to be appreciated at the outset that financing of airport infrastructure has some inherent problems. These projects have a large element of sunk cost, a very long gestation period and highly uncertain returns on investment based on several assumptions of traffic growth that may fail to materialize.

2. The current pattern of financing is predominantly based on internally generated resources of the AAI. Funding through external assistance, external commercial borrowings, loans and equity has been negligible. The allocation of budgetary grants is limited to certain airports in remote and inaccessible areas. Considering the astronomical sums which seem to be required for modernization and upgradation of existing airports and for the new airports at Mumbai (Rs.10, 000 crores), Bangalore (Rs.1,600 crores) etc., there has to be a clear privatization of projects so as to utilize state resources in the most optimal manner. Further, the financing strategies will have to be looked at from a thoroughly novel standpoint.

3. Taking the internal resources first, the following steps will be initiated: Optimization of revenue from aeronautical charges, through negotiation with IATA

and keeping Government approvals in view. A revolutionary thrust towards raising of revenue from non-aeronautical commercial

sources. Rationalization and optimization of various charges like passenger service fee, user

development charges, aerobridge charges, etc. and imposition of new levies like security charges, fuel throughput charges etc.

Massive economy in expenditure by manpower optimization, cost reduction, elimination of duplication, increased productivity, contracting out of services, etc.



Greater resource to additional sources like external assistance, public bonds, external commercial borrowings, public issues, loans from Government/financial institutions etc.

4. Currently, the revenue from the taxes imposed in the aviation sector in the shape of IATT and FTT is credited to the Consolidated Fund of India, with only 10% of FTT being given to the AAI. Even this 10% IS NOW SOUGHT TO BE TAKEN BACK. Taking into account the vast sums required for infrastructural development, there is a strong case for conversion of these taxes into a common Civil Aviation Cess, the proceeds of which should be credited to a National Civil Aviation Fund to be operated by the Ministry of Civil Aviation.

5. There has to be a general appreciation about the needs of the airport infrastructure sector and the plan allocations to the AAI need a hefty increase.

MECHANIZATION Cargo Handling Facilities Clearance Procedure

Schedule of Charges

Perishable Cargo

Pre Deposit Account

Waiver Of Demurrage Charges

Pre Shipment Procedure for Export Baggage-

Obtain Carting Order Airway bill from Airlines LOCATION: respective Airline's Offices.

Obtain TC Receipt from DIAL Counter & pay in the Bank.LOCATION: DIAL TC Counter, Ground-Floor - State Bank of India.

Enter Export Cargo along with relevant documents: LOCATION: I Export Entry Gate

Get Entry endorsement from DIAL TD Gate.LOCATION: DIAL Truck Dock Gate.

Obtain Customs entry on the BD Form/Orders from Customs for examination.LOCATION: Customs Superintendent-Exp. Wing.

Present BD form to Customs along with the baggage, complete Customs examination and obtain 'Let Export Order'.

Present documents (BD finalized by Customs/AWB/Carting order/DIAL TC: Receipt to DIAL bonded area gate along with baggage.LOCATION: Respective Airline Offices.


http://www.newdelhiairport.in/page.asp?id=cargo-procedures.asp#h2







Hand over documents to Concerned Airlines.LOCATION: Respective Airline Offices.

Cargo is unitized by DIAL against loading instructions from Airlines.LOCATION: DIAL export Bonded Area.

Releases of Export Cargo from Cargo Terminal for the Flight: Request from Airlines and simultaneously permitted by Customs. LOCATION: DIAL-Palletisation Area, Export wing.

Pre Shipment Procedure Export General Cargo- Registration & Processing of Shipping Bill by Customs (CRU/Service Centre).

LOCATION: 1st Floor Export. Obtain Carting Order & AWB from the Carrier.

LOCATION: Respective Airline's Offices. Present papers (SB/AWB/Carting Order) to DIAL counter and obtain Terminal

Charges Receipt.LOCATION: DIAL, TC Counter, Export Wing.

Pay DIAL charges. LOCATION: Bank Counter, Export Wing.

Enter Export Cargo along with relevant documents.LOCATION: Export Entry Gate.

Present papers (SB/AWB/Carting Order/TC receipt) to DIAL staff in Truck Park for docking to trucks at designated Truck Dock gate. LOCATION: Truck Park Entry Gate.

Present Customs processed documents to DIAL staff at designated TC gate and off-load cargo. Obtain DIAL endorsement on S/B.LOCATION: Truck Dock Gate Export Wing (GF).

Obtain Customs number from the respective Customs Group on the S/B & obtain Customs endorsement for pkgs. To be detained for examination.LOCATION: Customs in Examination Area (Export)/Gate.

Complete Customs Examination & Obtain 'Let Export' Order/Customs Orders. LOCATION: Examination Area (Exports).

Present Customs processed documents (SB/AWB Set/Carting Order/TC Receipt) to DIAL Staff at bonded area gate along with cargo for binning & endorsing location on the TC Receipt/AWB.LOCATION: Bonded Area Gate Export Wing.

Hand Over documents to Airlines.LOCATION: Respective Airline Offices.

UNITIZATION-Airline submits Customs approved loading sheet for unitization or bulk loading to DIAL.LOCATION: DIAL Export Bonded Area.

Release of Export Cargo from ETV for the flight against request from Airlines duly approved by Customs. LOCATION: DIAL Export Palletization Area.



Cargo Handling Facilities

Public Facilities General Facilities Special FacilitiesPhotocopying On-line Integrated Cargo

Management System (ICMS) for data processing

Strong Rooms for valuable cargo

Cold Drinks / Tea/ Coffee Kiosks Elevated Transfer Vehicle (ETV) with 350 stacking slots for 3 level storage of ULD's

Centre for perishable cargo / cold room (3 chambers, 0-12° C)

Coffee Home Pick and carry cranes Hazardous Cargo ShedPublic Telephone (STD/ISD) Forklifts Live Animal shedPacker Services High Reach Stackers Stamp Vendor Stamp Vendor Air Conditioned Public Waiting Areas

Cargo trolleys

Banks Power pallet trucks Punjab National Bank Idle ULD Parking Area State Bank of India Truck-dock 84 Nos. Canteen Auction Hall for disposal of

unclaimed cargo

Schedule of Charges (w.e.f. 11.10.2007)

EXPORT CARGO

(I) TERMINAL, STORAGE AND PROCESSING CHARGES

S Type of Rate per Kilogram Minimum Rate per



No. Cargo consignment

1 General Rs. 0.70 Rs. 120

2 # Special Rs. 1.40 Rs. 235

3 Perishable

(a) Rs. 2.43 when state-of-the-art facility is provided

(b) Rs. 0.70 when exclusive facility is not provided

Rs. 235

Rs. 120

OPERATIONS /TIMING

DIAL handles export cargo on behalf of over 55 operating airlines. Export cargo is required to be brought in "ready for carriage condition" with proper packing, Bar - coded labeling, marks & numbers etc. prominently marked on all sides of packages, duly accompanied by a 'Carting Order' from concerned airline, Air Waybill, Shipping Bill, Baggage declaration, for admission of cargo. Terminal Storage & Processing charges are to be paid to the DIAL at the Bank/DIAL counter in export wing for Non-EDI documents & on-line payment through Web for documents processed through EDI system.

Cargo remains under the care and responsibility of passenger /shipper/agent until cleared by Customs. After Customs issued the "Let Export Order" the Passenger/Shipper/Agent shall hand over the Cargo to DIAL for transfer to Bonded Area. DIAL, after receiving on said to contain basis, is responsible for the cargo handed-over to it at the 'Bonded Gate' by the Agent/Shipper till the cargo is released to the airline for upliftment. The Cargo is received, processed and handled by DIAL on said to contain basis and DIAL is not associated in the examination of contents of packages at any stage. The examination is carried out by Customs in the presence of the shipper or his authorized agent. Loaders’ services for physical handling of packages are available at no extra charges.

Export Wing

1 Covered Area 34,000 Sq.Mts

2 Tonnage (2005-2006)MT 175,000

3 Tonnage handled in 2006/2007 160, 000

4 Operating Airlines 57



5Upliftment Ratio of Export Cargo by passenger flights vis-à-vis freighter flights

68 : 32

6 Unitization Activity per day (Avg) 118 Pallets 72 containers

7 ULD Storage positions 348

8 Build up Stations 6 mechanized with 24 build up positions

9 Cargo Apron Capacity6 wide bodied aircrafts with ULD Parking area & hydrant refueling.

Source: International Exhibition Logistic Associates 2002

Timings

INTERNATIONAL CARGO TERMINAL BUSINESS HOURS

EXPORT

DIAL Normal Working Hours 1000 Hrs. to 2200 Hrs.

Bank Opening Hours 1130 Hrs. to 1730 Hrs.

Customs Normal Working Hours 1000 Hrs. to 2130 Hrs.

Service beyond normal working hours 2200 Hrs. to 1000 Hrs.

On Sunday/holidays, services may be availed on payment of prescribed MOT Charges subject to Customs permission.

FACTORS AFFECTING EXPORTS

Exports are influenced through many channels. These channels can be classified broadly into two groups. One channel refers to demand-side factors, which can lead to a sudden turnaround in growth, while the other channel refers to supply-side factors. If supply-side factors are not favorable, this may prevent a quick revival of exports and may also act as an obstacle to maintaining high growth for a long period.

(a) Demand-side factors



(i) Price competitivenessIndia’s merchandise export profile (comprising mostly low technology products) is quite similar to those of South-East Asian nations. Country names in parentheses denote the leading producers, although other countries in the region also have a comparative advantage in producing these commodities.

Major factors affecting Indian exports

(ii) Potential demandApart from relative prices, the GDP of importing economies is also considered to be an important variable for estimating export demand functions (Goldstein and Khan, 1978; Magee, 1975). Since imports by India’s major trading partners are based on derived demand



(that is, as a function of their GDP), demand for Indian exports refers to potential rather than actual demand. In table 2, the import growth of India’s major trading partners is considered. As can be seen, import figures for these nations have shown a positive trend.

b) Supply-side factors

(i) Factor productivityFrom the supply-side perspective, growth in exports can be an outcome of improved factor productivity. A recent paper by Bosworth, Collins and Virmani (2006) found that labour productivity has increased since 1991.



(ii) Procedural bottlenecksAlthough reforms in India are taking place, they are far from complete. There is scope for further reform. Exporters face a maze of government orders, regulations, rules and procedures, which raise the cost of production and hence affect exports.

Source: International Exhibition Logistic Associates 2002

IMPORTANCE

The Cargo operations of Delhi International Airport Ltd (DIAL) won the e-Asia 2007 Award on Implementation of e- Commerce / Electronic Data Interchange in Air Cargo Sector, awarded by Asia Pacific Council for Trade Facilitation & Electronic Business (AFACT).

Implementation of the Electronic Commerce / Electronic Data Interchange is one of the thrust areas of the Govt. of India under Export Promotion Board (EPB) and is coordinated by Ministry of Commerce. This results in paperless e-transactions as per international standards. The said project was initiated by AAI at four metro Indian airports and steered by a core team of DIAL officials for IGI Airport

After implementation of the project, all concerned agencies connected with Export & Import cargo like Cargo Agents, Customs, Airlines and the Warehouse Operator at the airports are able to exchange relevant data and minimise human intervention except for the physical delivery of cargo. With this, the Agencies are able to file papers with Customs, book consignments with Airlines and make payments to Warehouse Operator from the comforts of their workplace, electronically.

The e-system will help Freight Forwarders send consignments and commercial information to Airlines, Customs and to Warehouse Operator at Indian airports prior to landing of the



aircraft so that they are ready to take delivery within shortest possible time. Such implementation has made the transactions, seamless, instant and paperless to a great extent.

The air cargo terminal spread over 27 acres of land manages and operates a common user infrastructure facility for storage and processing of international air cargo. With the help of semi-mechanized integrated facilities, the terminal undertakes secured and efficient Export, Import and transshipment cargo functions. It provides a single window clearance for export and import cargo, with a view to facilitate expeditious processing and custom clearance of International Cargo.

Air Cargo Traffic is growing rapidly in India. Currently, Delhi Airport handles more than 0.4 million tonnes of cargo per annum. This figure is expected to grow to 2.0 million tonnes by 2025. DIAL is aiming to modernize Delhi Airport to help cater to the growing passenger and cargo traffic.

DIAL has also started work on the integrated passenger terminal and runway and the new terminal would be inaugurated in 2010 before the Commonwealth Games. Prior to that in 2008, a brand new Code F compliant runway and domestic terminal will be ready to cater to the growing traffic. With the new terminals and runway, Delhi Airport will be able to cater to 37 million passengers per annum (mppa) and handle 75 aircraft movements per hour. The Master Plan envisages an ultimate design capacity of 100 million passengers per annum by 2026.

Air cargo business assists in facilitating the global sourcing of manufacturing and allows manufacturers to thwart from holding inventories apart from their logistic chain. The speed and consistency of air cargo helps the individual customers and other business class groups to distribute the product within a dedicated time frame.

The crude oil crisis has made Delhi the country's busiest airport in terms of number of daily flight movements, beating Mumbai for the first time ever.

Before jet fuel price started its upward trend, Mumbai used to handle 750 to 760 flights daily. But now with airlines reducing flights to cut losses, Mumbai - the hub of most domestic carriers - has witnessed the maximum cancellations and now this figure is down to an average of 650.

Delhi, on the other hand, has not witnessed such a dramatic reduction in flights and now its daily movement of over 700 flights (down from 720 to 730 earlier) is higher than Mumbai, making it the airport witnessing maximum number of flights on a daily basis.

Mumbai had historically been the busiest airport in terms of flight and passenger movements. Now it retains the lead only in terms of number of fliers.

"Delhi has become the busiest airport now. Mumbai has witnessed a sharp fall in number of daily flights but that is yet to decongest the airport as peak hours still remain as choked as they were earlier. Most airlines are cancelling flights in non-peak hours so the issue of bundling still remain and there's a marginal fall in hovering time with this fall in number of flights," said a top ATC official.


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With airlines bleeding heavily and looking for elusive investors to pump in some money, the number of flights is likely to fall even further in the ongoing lean season that will last till September. The load factors of many flights have fallen to alarming levels.

For example, Mumbai airport sources said they gathered data for number of flights taking off with less than 50 passengers on board on July 1 and 2. As many as 23 flights on July 1 and 16 on July 2 fell in this category as the number of people on board them ranged between five (crew on ferry flights) to 49.

"Certainly some of these flights were cargo or those going with crew to some other station to operate flights from there. But even some mid-size planes like A-320s or Boeing 737s were that can seat up to 180 passengers were flying with 41 or 32 people on board," said sources.

Load factors like these are now forcing airlines to think in terms of grounding some planes till travel season begins in September. Ironically, the overall fall in aircraft movements is happening at a time when airports like Delhi, Hyderabad, Bangalore and some others are gearing up to handle more traffic. Mumbai was the only place where a new runway could have come up only at the proposed Navi Mumbai airport at least five years later.

Airports being nuclei of economic activity assume a significant role in the national economy. The quality of airport infrastructure, which is a vital component of the overall transportation network, contributes directly to a country's international competitiveness and the flow of foreign investment. While cargo carried by air in India weighs less than 1% of the total cargo exported, it accounts for 35% of the total value of exports. Better cargo handling facilities lead to enhanced levels of importation, especially of capital goods and high-value items. Likewise, 97% of the country's foreign tourists arrive by air and tourism is the nation's second largest foreign exchange earner.

Airports also represent a country’s window on the world. Passengers form their first impressions about a nation from the state of its airports. They can be effectively used as symbols of national pride, if we pay sufficient attention to their quality and maintenance.

In many remote, hilly and inaccessible areas of the country, air transport is the quickest and sometimes the only mode of travel available. This is especially true of sensitive regions on the borders with our neighbours in the west, north and north-east.

Airports need to be integrated with other modes of transport like Railways and Highways, enabling seamless transportation to all parts of the country.

The ministry of law has found that Delhi International Airport Ltd (DIAL) is well within the scope of the operation, management & development agreement (OMDA) in forming subsidiaries to upgrade the airport in Delhi.

Dial has been planning to develop its non-aero business to generate revenue from commercial use of land owned by Delhi airport through a 100% subsidiary, Delhi Aerotropolis. It is also planning another subsidiary for cargo operations.



The revenue from the property developed by Delhi Aerotropolis would go directly to Dial, which was allegedly planning to form a subsidiary to manage commercial development of the land and therefore share less revenue with Airports Authority of India (AAI).

The law ministry is of the view that as long as the money is going to the parent company and is distributed as per the revenue sharing agreement with the government and AAI, it is well within the legal purview.

In a bid to end the row over the many objections raised by the civil aviation ministry and the AAI over the formation of subsidiaries, Dial has offered berths for government representatives on the boards of subsidiary companies. Delhi Aerotropolis will be a wholly owned subsidiary but the cargo operation may have a strategic partner, sources said.

Meanwhile, the civil aviation ministry has sought the opinion of the solicitor general of India on the plan to tap commercial development of airport land through a subsidiary.

An eventful year at Delhi airport

In the month of May in the year just gone by, Delhi International Airport (Private) Limited completed one year of operations at Delhi airport.

The consortium led by Bangalore-based GMR Group started many new ventures at the airport, a few of which are expected to be completed in 2008 to help in making it a world-class facility.

The year began with laying of the foundation stone for a new integrated passenger terminal (Terminal 3) and a new runway (11-29).

“Work is progressing on the third runway that will be commissioned in mid-2008. It will be one of the longest runways in Asia equipped with CAT III-B Instrument Landing System at both the ends, which means that an aircraft will be able to land in visibility as low as 50 metres,” claimed a DIAL spokesperson.

The construction work on the passenger terminal building (PTB) -- that will serve both domestic and international passengers through 168 common use check-in counters -- and boarding piers is in full swing now with the building scheduled for inauguration by March 2010, well in time for the Commonwealth Games in Delhi.

DIAL also began construction work during the year for a brand new domestic terminal to replace the existing Terminal 1B. The new building would include a new Departures building and an expanded and improved Arrivals building.

The process of modernisation of the international terminal (Terminal 2) also began during 2007. In the Departures area, additional space is being created in the concourse. There will be additional Emigration and Immigration counters.



On the existing operations front, several new eateries were opened at the terminals including McDonald’s and Nirula’s. A wide range of duty-free shops were also opened at the airport offering world-class products across categories.

On the airside operations front, four new rapid exit taxiways were commissioned on runway 10-28 to facilitate faster movement of aircraft while landing on the main runway from the Dwarka side. Also, the number of CAT-III lighting-equipped aircraft bays was increased from 25 to 55.

“DIAL also procured an advanced runway friction testing machine to ensure optimum friction levels for the runway surface. A new power-in push-back parking method was introduced in the front two rows of the domestic apron. This method is safer than the previous arrangement which had aircraft and vehicles operating in close proximity,” said an official.

DIAL was also awarded the prestigious ISO 9001:2000 quality certificate during the year. It also received the ISO 9001:2000 certificate from the UK-based Lloyds Register Quality Assurance.

Earlier in February 2007, the international cargo terminal was awarded the prestigious ISO 9001:2000 quality certificate as well.

The cargo operations of DIAL also won the “e-Asia 2007 Award” on “Implementation of e-Commerce / Electronic Data Interchange in Air Cargo Sector”.

To provide additional seating area for passengers delayed due to fog-related delays during winters, Terminal 1B was extended on the kerbside. A flight information display system was also provided in the extension area to update the passengers.

Air cargo handling Area and facility

• Import cargo• Commercial cargo• Unaccompanied baggage• Valuable items like jewellery & diamonds• Export cargo• Commercial cargo• Outgoing unaccompanied baggage• Valuable items like jewellery & diamonds



Facilities :• Separate godowns for exports, imports & unaccompanied baggage• Examination halls for exports & imports• Experienced staff at all the handling area.• Sufficient handling equipment for the air cargo

Ground Support Equipment

Some equipment is playing a very important role in Export and Import cargo.

Ground support equipment Taxing in/pushing back

Ground support equipment (GSE) is found at an airport, usually on the ramp, the servicing area by the terminal. This equipment is used to service the aircraft between flights. As its name implies, GSE is there to support the operations of aircraft on the ground. The functions that this equipment plays generally involve ground power operations, aircraft mobility, and loading operations (for both cargo and passengers).

Catering vehicle:

Many airlines subcontract ground handling to an airport or a handling agent, or even to another airline. Ground handling addresses the many service requirements of a passenger aircraft between the time it arrives at a terminal gate and the time it departs on its next flight. Speed, efficiency, and accuracy are important in ground handling services in order to minimize the turnaround time (the time during which the aircraft remains parked at the gate).

Small airlines sometimes subcontract maintenance to a much larger and reputable carrier, as it is a short-term cheaper alternative to setting up an independent maintenance base. Some airlines may enter into a Maintenance and Ground Support Agreement (MAGSA) with each other, which are used by airlines to assess costs for maintenance and support to aircraft.

Most ground services are not directly related to the actual flying of the aircraft, and instead involve other service tasks. Cabin services ensure passenger comfort and safety. They include such tasks as cleaning the passenger cabin and replenishment of on-board consumables or washable items such as soap, pillows, tissues, blankets, and magazines. Security checks are also made to make sure no threats have been left on the aircraft.


http://en.wikipedia.org/wiki/Gate_(airport)

http://en.wikipedia.org/wiki/Aircraft_ground_handling#List_of_handling_agents

http://en.wikipedia.org/wiki/Aircraft_ground_handling

http://en.wikipedia.org/wiki/Airline

http://en.wikipedia.org/wiki/Aircraft

http://en.wikipedia.org/wiki/Airport_terminal

http://en.wikipedia.org/wiki/Airport_ramp

http://en.wikipedia.org/wiki/Airport

http://en.wikipedia.org/wiki/Image:Airport_equpmen

http://en.wikipedia.org/wiki/Image:KLM_777_pushbac


Chocks Non-powered equipment

Chocks Trolley for pallets Trolley for containers

Chocks are used to prevent an aircraft from moving while parked at the gate or in a hangar. Chocks are placed in the front and back of the wheels of landing gear. They are made out of hard wood or hard rubber.

Bag carts

Baggage carts are used for the transportation of luggage, mail, cargo and other materials between the aircraft and the terminal or sorting facility. Carts are fitted with a brake system which blocks the wheels from moving when the connecting rod is not attached to a tug. Most carts are completely enclosed except for the sides which use plastic curtains to protect items from weather.

Dollies for containers and pallets

The trolley for containers and palettes are used for the transport of loads placed in containers and on pallets. The both kinds of trolley have inbuilt rollers or balls in the space for the acceptance of containers or pallets for their easier moving. The containers or pallets on trolleys must obligatory be secured with built-in fuses. The mechanical brake, depending on construction blocks the wheels when the pole of trolley is raised in air or is on the ground. The trolleys for containers have revolving pattern to make containers turned around in direction of loading on aircraft. On all trolleys the parts as brake for wheels blocking, the wheels, the pole, the hook for connecting, fuses of revolving platform, and fuses for blocking containers or pallets must be in order or with them is prohibited any transport.

Powered equipment

Refuellers

Hydrant truck aircraft refueller.


http://en.wikipedia.org/wiki/Brake

http://en.wikipedia.org/wiki/Mail

http://en.wikipedia.org/wiki/Luggage

http://en.wikipedia.org/wiki/Rubber

http://en.wikipedia.org/wiki/Wood

http://en.wikipedia.org/wiki/Landing_gear

http://en.wikipedia.org/wiki/Wheel

http://en.wikipedia.org/wiki/Wheel_chock

http://en.wikipedia.org/wiki/Image:Chock

http://en.wikipedia.org/wiki/Image:Pallet_dollie

http://en.wikipedia.org/wiki/Image:Container_doll

http://en.wikipedia.org/wiki/Image:Aircraft-refueller-hydrant-car


Aircraft refuellers can be either a self contained fuel truck, or a hydrant truck or cart. Fuel trucks are self contained, typically containing up to 10,000 US gallons of fuel and have their own pumps, filters, hoses, and other equipment. A hydrant cart or truck hooks into a central pipeline network and provides fuel to the aircraft. There is a significant advantage with hydrant systems when compared to fuel trucks, as fuel trucks must be periodically replenished.

Tugs and tractors

The tugs tractors at an airport have several purposes and represent the essential part of ground support services. They are used to move any equipment that can not move itself. This includes bag carts, mobile air conditioning units, air starters, lavatory carts, and other equipment.

Ground power units Buses

Ground power unit Airport Bus

A ground power unit is a vehicle capable of supplying power to aircraft parked on the ground. Ground power units may also be built into the jetway, making it even easier to supply electrical power to aircraft. All aircraft require 28V of direct current and 110V 400 Hz of alternating current. The electric energy is carried from a generator to a connection on the aircraft via a very thick cable. These connectors are standard for all aircraft.

Container loader

The loader for widebodied aircraft (cargo platform) is used for loading and unloading of cargo placed in containers or on pallete. The loader has two platforms which independently raise or come down. The containers or palettes on the loader are moved with the help of built-in rollers or wheels, and are carried in aircraft across the platforms.

Transporters Air starter

Container transporter A jet air starter


http://en.wikipedia.org/wiki/Electrical_generator

http://en.wikipedia.org/wiki/Alternating_current

http://en.wikipedia.org/wiki/Hertz

http://en.wikipedia.org/wiki/Volt

http://en.wikipedia.org/wiki/Direct_current

http://en.wikipedia.org/wiki/Volt

http://en.wikipedia.org/wiki/Jetway

http://en.wikipedia.org/wiki/Image:GP

http://en.wikipedia.org/wiki/Image:Karachi-MNG-Hajj-1016

http://en.wikipedia.org/wiki/Image:Container_transporte

http://en.wikipedia.org/wiki/Image:Jet_air_starte


The transporters are cargo platforms constructed so that beside loading and unloading can transport cargo. Depending on the type and load capacity the containers could be transported, and the same is valid for greater transporters and palettes.

An air starter is a vehicle with a built-in gas turbine engine which, during the start of aircraft engine, gives the necessary quantity of air to start the engine. While a compressor cannot deliver the necessary quantity of air for its own work, the air is provided by an air starter. An air starter blows air in by a hose attached to aircraft.

De/anti-icing vehicles

A de/anti-icing vehicle

The procedure of de/anti-icing, protection from fluids freezing up on aircraft, is done from special vehicles. These vehicles have booms, like a cherry picker, to allow easy access to the entire aircraft. A hose sprays a special mixture that melts current ice on the aircraft and also prevents some ice from building up while waiting on the ground.

SCOPE

The scope of this study is to achieve a dramatic improvement in the air cargo section. Through this study the Delhi international Airport authority of India wants to identify the real problem of Export and import section in Air Cargo Terminal. It is fact such type of research is always conducted at the time when the Government of any organization wants to innovation in the particular area. And it is very necessary to improve the facilility of Air


http://en.wikipedia.org/wiki/Cherry_picker

http://en.wikipedia.org/wiki/Deicing

http://en.wikipedia.org/wiki/Gas_compressor

http://en.wikipedia.org/wiki/Gas_turbine

http://en.wikipedia.org/wiki/Air

http://en.wikipedia.org/wiki/Image:De-anti_icin


Cargo in Export and Import because the Air cargo is really plays a good role in country’s economic growth. We can explain it with various ways as:

Indira Gandhi Airport is the second busiest in India. Air cargo is playing an imperative role in the value chain of global transport and logistic, which in turn attracts cargo market to grow four to five folds by 2020 surpassing passenger’s traffic growth. The ongoing deregulation of aviation market is having the effect of accelerating the growth trend, in increasing global trade. As a result, this would create competition between airports and become fierce in the air cargo market. The global air cargo operating system is featured by a network relationship among carriers, brokers, handlers, motor carriers, integrators, airports, freight forwarders, customers, suppliers, manufacturers and logistic service providers. Today air cargo environment is becoming increasingly integrated and ground linked, characterized by door-to-door service from shipper to customers, as opposed to just airport – to – airport.we can see the development of ‘Metropolitan’ areas were developing massively through the air cargo business, like Sebic Bay (Philippines), Louisville (USA), Amsterdam (Netherlands) and countries like Dubai (UAE) have greatly benefited from air cargo development. Airports today drive global commerce; the airport of the future will be a commerce centre. Next generation airport will be destination sites, providing not only multi-modal transport networks for worldwide commerce, but also as retail and leisure outlets.

Greenfield Airports

In view of the fact that there are already a sufficient number of airports, many of which are not viable, greenfield airports will normally not be taken up either in the public or private sector without the prior approval of the Government. In the case of the Other Airport category run by private operators, the approval of the DGCA would suffice as at present.

A Greenfield airport may be permitted where an existing airport is unable to meet the projected requirements of traffic or a new focal point of traffic emerges with sufficient viability. It can be allowed both as a replacement for an existing airport or for simultaneous operation. This aspect will have to be clearly spelt out in the notice inviting tenders.

No Greenfield airport will normally be allowed within an aerial distance of 150 kilometers of an existing airport. Where it is allowed as a second airport in the same city or close vicinity, the parameters for distribution of traffic between the two airports will be clearly spelt out.

The Government may, while permitting a Greenfield airport, decide whether it will be in the public or private sectors or be taken up as a joint venture.

Where the Government decides to set up a Greenfield airport throughout the AAI on social considerations even though the same is not economically viable, suitable grant-in-aid will be provided to AAI to cover both the initial capital cost as well as the recurring losses.

Air Traffic Services

The AAI will provide the Air traffic Services over the Indian airspace and adjoining oceanic areas in accordance with the ICAO Standards and Recommended Practices.



New CNS/ATM systems will be introduced on a priority basis in terms of the AAI's plan as well as the ICAO's Regional Plan. These will ensure a total coverage of the airspace in India.

There will be greater civil-military liaison for joint surveillance of Indian airspace. Integration of Civil/Military Air traffic Services will be developed to ensure uniformity in air- traffic control services at civilian and Defence airports.To achieve air safety of the highest order, unidirectional air corridor concept shall be introduced, wherever traffic so justifies, in close liaison with the Defence authorities. Maximum use will be made of radars and other navigational aids available with civil and Defence airport authorities thus enhancing the overall route navigation and surveillance facilities.

In airports now owned or operated by AAI, air traffic control equipment may be installed either by AAI or the concerned airport operator. Air traffic control services will normally be provided by AAI, except for approach and aerodrome control services, which may be provided by licensed ATCs engaged by the airport operators.

World Air Traffic: 1998-2008

Modernisation and Upgradation of Airport Infrastructure

Priority will be accorded to safety, passenger facilities, aircraft and cargo handling, while deciding the allotment of funds among different upgradation and modernization schemes.

Air transport serves a time-sensitive market. The surface access to airports should, therefore, be efficient and city planners should keep the airport -linked requirements constantly in view while designing surface transport development plans. There is a special need to emphasise the aspect of rail links with airports, in view of its near absence in India as contrasted with other countries.

The helicopter provides a direct and rapid means of transport over short-haul routes and is, therefore, particularly attractive for businessmen. There is also a great potential for helicopter operations in off-shore oil exploration and production, movement of food grains and essential commodities in remote, hilly and inaccessible areas, traffic management in metropolitan cities and so on. A planned programme for building of heliports will be taken up to give a boost to the helicopter industry.


http://www.aircargoworld.com/Graphics/month/24ACWD0504b


Hong Kong International Airport

Hong Kong International Airport is the main airport in Hong Kong. It is colloquially known as Chek Lap Kok Airport, due to the fact that it was built on the island of Chek Lap Kok by land reclamation, and also to distinguish it from the old Hong Kong Airport (Kai Tak).

The airport opened for commercial operations in 1998, replacing Kai Tak Airport, and is an important regional trans-shipment centre, passenger hub and gateway for destinations in China, East Asia and Southeast Asia. Despite a relatively short history, Hong Kong International Airport has won several notable international "Best Airport" awards. In 2001-2005 and 2007 - 2008, it came first in Skytrax's World Airport Awards, and second in 2006.

Features

1. Free port 2. Strategic geographic location

3. Excellent connectivity & accessibility

4. Reliable & quality service

5. Extensive IT application

6. High safety & security

7. Sufficient cargo capacity

8. Efficient cargo operation

9. Competitive total cost

Baggage and cargo facilities

Ramp handling services are provided by Hong Kong Airport Services Limited (HAS), Jardine Air Terminal Services Limited, and Menzies Aviation Group. Their services include the handling of mail and passenger baggage, transportation of cargo, aerobridge operations and the operation of passenger stairways. The airport has an advanced baggage handling system (BHS), the main section of which is located in the basement level of the passenger terminal, and a separate remote transfer facility at the western end of the main concourse for handling of tight connection transfer bags.

HKIA currently handles well over three million tonnes of cargo annually.Hong Kong Air Cargo Terminals Limited operates one of the two air cargo terminals at the airport. Its headquarters, the 328,000 m² SuperTerminal 1, is the world’s second largest stand-alone air


http://en.wikipedia.org/wiki/Jardine_Air_Terminal_Services_Limited

http://en.wikipedia.org/wiki/Hong_Kong_Airport_Services_Limited

http://en.wikipedia.org/wiki/Skytrax

http://en.wikipedia.org/wiki/2008




http://en.wikipedia.org/wiki/Southeast_Asia

http://en.wikipedia.org/wiki/East_Asia

http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Kai_Tak_Airport


http://en.wikipedia.org/wiki/Kai_Tak

http://en.wikipedia.org/wiki/Kai_Tak

http://en.wikipedia.org/wiki/Land_reclamation

http://en.wikipedia.org/wiki/Chek_Lap_Kok

http://en.wikipedia.org/wiki/Chek_Lap_Kok

http://en.wikipedia.org/wiki/Islands_and_peninsulas_of_Hong_Kong#Islands

http://en.wikipedia.org/wiki/Hong_Kong


cargo handling facility, after the opening of the West Cargo Handling Area of the Shanghai Pudong International Airport in 26 Mar 2008.

China Airlines

China Airlines Ranks in Top 10 Cargo Carriers (1998 Jun)

June 30, Taipei - The June issue of England's Airtrade magazine cited International Air transport Association(IATA) statistics ranking China Airlines 10th in the world in volume of air freight carried, putting CAL among the top 10 airlines in this category for the first time. At the same time, CAL held firmly to its top position in Taiwan market share, advancing toward the 30% target in both import and export cargo. China Airlines moved into the top 10 cargo airlines by carrying 2.76 billion ton-kilometers of cargo on international routes in 1997, following only Lufthansa, Korean Airlines, Air France, Singapore Airlines, Japan Airlines, British Airways, KLM, Cathay Pacific, and Federal Express.

Airtrade magazine also predicted, "China Airlines' continued expansion suggests it could climb the rankings next year."

According to statistics compiled by the Association of Asia-Pacific Airlines (AAPA), CAL achieved a cargo load factor of 88.2% in 1997, capturing top place among the AAPA's 19 member airlines. Cargo revenue for the year reached NT$16.2 billion, an increase of 24.47% over the year before. The total volume of cargo carried during the year(including domestic service), amounting to 2.89 billion ton-kilometers, represented a growth of 21%. Despite the impact on the domestic economy of the Asian financial turmoil that erupted in July of 1997, CAL's cargo business continued growing in 1998, registering an increase of 4.3% in the first five months of the year.

China Airlines has continuously expanding its network of cargo routes in recent years by inaugurating new direct cargo flights to Miami and Atlanta in the United States. The effort to establish a comprehensive global cargo network continues, with planning actively under way for new routes to serve the Australian and South Asian areas. This effort includes expansion of the airline's fleet of cargo aircraft, which currently numbers eight Boeing 747-200F freighters. New freighters will be delivered, including 747-400F aircraft, to bring the fleet to a total of 17 B747 freighters by 2003 and provide clients with even faster and more convenient cargo services. In the Taiwan market, CAL already enjoys a 23.41% share of export air cargo and a 26.73% share of import cargo; both figures are tops in the domestic market, far ahead of the 17% share occupied by the second-place airline. In the future, CAL will continue advancing toward its goal of a 30% share of the Taiwan market.

IATA ECONOMIC BRIEFING: PASSENGER AND FREIGHT FORECASTS 2007 TO 2011:



KEY POINTS:IATA’s latest forecast, based upon a comprehensive survey of the airline industry, shows that passenger and freight demand growth will continue to provide a positive boost to airline revenues over the five years to 2011. However, the profile of growth will differ. Compared to 2006 growth levels, international passenger growth is expected to slow slightly, domestic passenger growth to improve slightly and international freight growth to remain at a similar level. International passenger volume growth has passed its peak level for the current cycle, but will remain strong.

International air passenger numbers are expected to grow at an average annual growth rate (AAGR) of 5.1% between 2007 and 2011, lower than the average rate of 7.4% seen between 2002 and 2006. Demand growth will be weakened by slightly slower global economic growth, but will also be boosted by the liberalization of markets and the emergence of new routes and services. Domestic passenger growth is expected to pick-up slightly, led by strong growth in the Chinese and Indian domestic markets. Domestic passenger numbers are forecast to grow at an AAGR of 5.3% between 2007 and 2011, higher than the average rate of 4.4% seen between 2002 and 2006.

Airlines are in a better financial position than they were five years ago. But the challenges of the last five years have left the industry with little or no financial safety-net. The next five years offer significant demand growth opportunities for airlines, but competition for that growth will be strong as new capacity increases at an increased rate. Further cost efficiencies, rational apacity management and greater operational flexibility are necessary to translate the improvements already achieved into a stable and profitable industry over the next five years. The airline industry, and these forecasts, remain exposed to several risks, ranging from temporary negative impacts (e.g. security scares) to high fuel prices and slower than expected growth in the global economy.

Top 10 Airlines worldwide in Air Cargo Movement.

Global Rank

Airlines Cargo Volume (000’s)

1 Korean Airlines 8164 2 Lufthansa 8028 3 Singapore Airlines 7143 4 Cathay Pacific Airways 5876 5 China Airlines 5642 6 Federal Express Corp 5595 7 Eva Airways Corp 5477 8 Air France 5384 9 British Airways 4771 10 Cargolux Airlines Int’l 4670

Source: IATA, 2004



Problems

General Problem faced during the study

Definitely it was a great experience to work at cargo terminal between the rush area. But there are some problems also faced by us during this survey. It was totally a different and new environment for us. Before this survey we have done a survey on passenger’s terminal that’s why it was a new for us. The process of import and export was very different. The import process was quit typical cooperatively export section. I was at Export section and the process was very typical and was not easy to understand only in one day. It takes almost two days to understand the whole process. The officers and workers were so busy in there work and getting information from them was not easy. We need to run behind them for getting information.

It was a high security area and we had been questioned by lot of security persons for security reasons. Nobody can enter without pass. Which are issues by DIAL. The environment was so polluted and it was creating health problems.



It was a group of 5 members and track the consignments was very difficult. The tracking was started to Truck-Doc-Area to Flight arrival area. Between this there are some process as consignment put in the particular location and then palletization.

The study was conducted in summers and it was so hot inside the cargo terminal making hard to work in that. There was lot of safety issues for us also because lot of big vehicles (forklift) was roaming every time with speed. The drivers drive that as a blind because they worked whole night. We need to work for 12 hours continues every day and there was only one hour break. So these are the problems we faced while doing this study.

The Major problems in Air cargo

“Dwell time for import and export cargo at Indian airports is three and seven days, respectively despite many steps taken by the airport operators,” the official added. While dwell time for imported cargo in Singapore is 12 hours, at Delhi airport it takes 165 hours. At Sharjah airport, the dwell time for export cargo is just four hours.

On the recommendation of an inter-ministerial group, chaired by civil aviation secretary, airport operators across the country, including GMR Group-backed Delhi International Airport (DIAL) and GVK Group-led Mumbai International Airport (MIAL), have reduced free time for cargo at airports. While for import cargo the free time has been reduced to 72 hours from five days earlier, for export cargo it has been retained at 24 hours.

There are some important problems, which need improvement-

Only few X-ray machines are working properly. In X-ray machine office the examine person didn’t examine the whole cargo. The working environment of bonded area is not so good. There is lack of fresh air There is very rush of agent between 1 pm to 7 pm before it the truck doc gate person

had no work. The maintenance of cargo equipments are not regularly that’s why they don’t work

properly. The ground of bonded area was so slippery due to oil of vehicles, which moves

always. The customs people are also not working properly. They are not present their place at

the time of work.



It is also fact the technology, which is use by the Air cargo in India is quit poor comparatively developed countries.

Solution

In fact 65 per cent of the export cargo arrive between 1 p.m. and 7 p.m.; 12 per cent between 7 p.m. and 10 p.m., and only five per cent between 10 a.m. and 1 p.m. The incentive introduced for presenting cargo in early has been withdrawn due to lack of support from the exporters. The four key areas which therefore require attention are beefing up of the security system, up gradation of technologies, simplification of procedures and reduction in dwell time.There should be a faster delivery system by creating separate area in the port premises clearly earmarked for immediate delivery of cargo to specified accredited importers.

On air cargo security preparedness, the steps being taken include installation of X-ray machines in sufficient number, deployment of CISF personnel in key positions, maintaining cooling off period (with effect from January 1, 100 per cent X-ray screening of export cargo), introducing regulated agents concept and security audit covering the performance of CCTV system, handling dangerous goods, dummy checks and secured atmosphere.



There should be web-based connectivity with various trade partners and bar coding system are yet to be introduced. Smoking / spitting in the Cargo Terminal premises is strictly prohibited. Any violation shall be sternly dealt with including imposition of fine / penalty.

To achieve the mission, Air cargo would focus on-

Enhancing the use of Information Technology Streamlining Customs procedures

Encouraging voluntary compliance

Evolving cooperative initiatives

Assisting in the formulation of Tariff Policies

Combating revenue evasion, commercial frauds and social menace effectively

Measuring conformance to service delivery standards

Developing professionalism and responsibility

CONCLUSIONS

The recent growth in Indian exports is primarily led by an increase in factor Productivity, growth in world trade, increase in intra-industry trade and external sector Reforms. While these factors certainly play an important role in explaining the surge in Exports, the removal of supply bottlenecks is necessary to sustain this high export growth.

Supply-side factors are extremely important and need to be addressed in this regard. As the Multilateral trade negotiations under WTO are stalled, India could strengthen its Involvement in meaningful RTAs to facilitate better market access for its exports.



In viewing the performance of air traffic growth in Asian region, air cargo business has a good potential, especially china and India are striding to share the air cargo in the region.

In performing these, the competitiveness of the nation’s businesses will augment additional inflow of foreign direct investment, which will be attracting to achieve the country’s economic development. In addition, it also chains in the expansion of urbanization, revenue generation, industrial developments and employment opportunities to act as engine for economic growth and development in the region.

Alternatively, India should be willing to take a more constructive approach, along with other developing countries, at multilateral forums such as WTO. On the domestic front, there is a necessity to put a proper infrastructure in place and eliminate the problems associated with burdensome government regulations and procedural bottlenecks. The growth of passenger services is also important for the growth of air cargo as 60 per cent of the air cargo is carried in the belly of the passenger aircraft, while charter aircraft account for a meagre 5.5 per cent.

In addition, it also chains in the expansion of urbanization, revenue generation, industrial developments and employment opportunities to act as engine for economic growth and development in the region.

BIBLOGRAPHY

Airbus Industries, (2000) Global Market Forecast (2000-2019), Airbus Industries, Toulouse.

Airport Council International (2004), Annual Economic Survey Report, 2004 Association for Asia Pacific Aviation (AAPA), (2003), Annual Report, Singapore Dubai International Airport Annual Report (2003), Civil Aviation Publication.



International Chamber of Commerce (ICC), (2003), “Air Cargo and the World Trade Organization”,

UK airport World Bank 2002,World Developer Indicators The International Cargo Association (TIACA), Annual Report, 2003 P. S. Senguttuvan(2003), “Air Cargo: Engine for Economic Growth and Development

– A Case Study of Asian Region,”. UNCTAD,2003


Documents

Report on Air cargo.IGI Airport