Regional Air Connectivity in India is growing rapidly. The government aims to connect smaller cities and regions through a 4-tier model using aircraft of different sizes. Over the past decade, domestic passenger traffic has grown by 14.2% annually and India now has the 9th largest aviation market. However, connectivity and air travel penetration remain low compared to other countries. Expanding regional connectivity through initiatives like non-scheduled permits and smaller aircraft can help develop the civil aviation sector and connect more of India's population. Challenges include high fuel costs and the need for government support of regional routes.

1. Regional Air
Connectivity
Siddhartha Ambekar
91- 8087811652

2. Point to Ponder
• You don't have to be an aviation genius or analyst to understand
that if at all there is a future for any of us it is only by expanding the
market. And Air Deccan was a step in that direction. It was not 'Shall I
start an airline?' it was more a question of how do I make more
people fly because then you have a never ending consumer base
and that is not easy because to do it, low cost is all about innovation,
efficiency -ruthless efficiency.
It is also a mindset of considering those who cannot fly as your
customers with love and affection so that you are not looking at only
the rich.
• - Capt. Gopinath ( Ex. Army )
Founder Air Deccan

3. Introduction
• A country‘s transportation sector plays an integral role in the growth
and development of an economy. According to the ―Indian
Aerospace Industry Analysis report, in terms of passenger traffic, India
is currently the 9th largest aviation market in the world. With regards
to air cargo tonnage, India leads the South Asian region -consisting
of Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal,
Pakistan and Sri Lanka. Currently, India has 128 airports – including 15
international airports.
Over the past ten years the Indian civil aviation sector grew by 14.2% in
terms of domestic passengers and 7.8% in terms of air cargo (in
CAGR – compound annual growth rate). In 2010-11 six major Indian
carriers with around 400 aircraft catered to 143 million passengers,
including 38 million passengers that originated abroad. In 2010-11,
Indian airlines carried approximately 1.6 million tons of air cargo.
Further growth of the aviation sector between 2011- 2013 is estimated
at 15%.8

4. Airports Status
• The government owned Airports Authority of India (AAI) operates 125
airports and civil enclaves out of a total of 449 airports and airstrips
located throughout India.
• The cities of Bengaluru, Delhi, Hyderabad, Kochi and Mumbai are served
by privately (or joint-venture) operated airports.
• All operational airports handled a total of 143.3 million passengers (105.5
m domestic and 37.9 m international) in the year ended March 2011.
• Passenger throughput has increased by almost 16 % in the first half of
2011-12 to 78.4 m. The total number of aircraft movements amounted to
1.31 million and freight handled exceeded 2 million tons in 2010-11.

5. Continued
• The government-owned airport authority owns and manages 125 airports, of
which only 85 are operational. Of these 85, only 13 are profit- making units. The
authority plans to increase the number of profit-making airports to 25 by the end
of the current financial year. AAI is also building three Greenfield airports in the
state capitals of Arunachal Pradesh, Meghalaya and Sikkim.
• The Airports Authority of India (AAI) plans to revive 28 out of the 40 non-
operational airstrips in India for non-scheduled operations.

6. Continued
• Airport Infrastructure -India•454 airports / airstrips(Operational and
Non-Operational)
• AAI manages 139 Airports International 17 (6 JV + 3 CE) Custom
• 8 Domestic
• 81 Civil Enclaves
• 25CNS/ATM

7. Operational v/s non-operational
Airports in India
449
125
40
Airports
operational
non operational

8. Indian Aviation Growth Pattern
• India has become the 9th biggest aviation market in the world.
• India ranks 4th after US, China and Japan in terms of domestic
traffic.
• Traffic Demand expected to increase by 8.5% per annum till 2015.
• Operational Airports –Increased from 50 to 82 in last 4 years.
• •Increased connectivity –69 Foreign Airlines from 49 countries flying
into India.

9. Growth Prospects
India is still one of the least penetrated markets even lower than Sri
Lanka, Pakistan and Nigeria.
India has 0.02 trips per capita as compared to 0.1 of China and 2.2
of USA.
India has over 300 million strong middle class population with ever
increasing disposable income.

10. NSOP
• NSOP stands for non-scheduled operator permit ,
‘Non-Scheduled air transport service’ means an air transport service, other than a
scheduled air transport service as defined in para 3.2 (DGCA Circular ), being operated
for carriage of passengers, mail and goods, and includes charter operations
Non-Scheduled Operator’s Permit’ means a permit authorizing an operator to
carry out non-scheduled air transport services subject to conditions as may be
Specified in the permit.
By and large there are 131 NSOP holders in India ,with different fleet and type of aircrafts
Major business depends on charter .

11. Growth of NSOP
106 107 117 129
151 156
183
229
272
327
370
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
operators no of A/C permitted for NSOP

12. TOTAL TRAFFIC AND OPERATING STATISTICS BY AIRCRAFTS ON
DOMESTIC SERVICES UNDER NSOP DURING 2009-10
Hours flown FLT operated Pax carried
76 31815 27789 114661

13. Monthly Traffic Carried by
Indian carriers (SOP)2013

14. Ministry of Civil Aviation
Strategic Plan 2010- 2015
Vision
• Enable people to have access to safe, secure, sustainable and affordable
air services in world class civil aviation.
• To reach every nook and corner of the domestic market by embarking on an
ambitious 4 tier growth model in the next 5 years.
• Tier-I will cater to smaller places with fleet carrying capacity of 15-20 seats.
Tier-II will carry from slightly bigger places with ATR carrying 48-60 seats.
Tier-III will cater to places with bigger fleet capacity upto 250 seaters.
• And finally wide body aircrafts will cater to international and select national
destinations.

15. Objectives
• To develop as one of the five largest aviation markets in the world.
• Domestic Traffic to rise @ of 9-10% annually.
• Achieve 0.10 trip per capita as against the present 0.04.
• 1 aircraft per 1.5 million population as against 2.89 m at present
• Introduce Sea Plane operations in the island and coastal areas for promotion of
tourism and domestic transport
• Mechanisms would be developed for seamless dovetailing of SOPs and NSOPs
between major airports and centres of lower passenger load/infrastructure so that the
hub and spoke principle of connectivity can be actually realised.
• Cost of travel being a critical factor in the full development of civil aviation on India,
the Government would develop suitable regulatory mechanisms to prevent predatory/
excessive charging and oligopolistic practices. A balance would be struck between
the interests of the travellers and commercial viability of Airline Operators.

16. SWOT Analysis
Rapidly growing economy
Growing population and middle class
Dispersed tourist attractions
Long history of Civil Aviation
Indigenous entrepreneurship
Good safety record

17. Opportunities
• Growth of inbound and outbound traffic
• Development of India as a prime tourism and medical services
destination
• Increased integration with the global economy
• Cross country travel by students
• Need for an aviation hub between Dubai and Singapore
• Disaster relief and medical evacuation
• Helicopter’ sector has significant growth opportunities

18. Weaknesses
• Increase in ATF , affects the pricing
• Limited infrastructure
• High costs of operation
• Lack of R&D; foreign dependence
Inadequate trained manpower
• Slow cargo growth
• Absence of MRO facilities
• Lack of comprehensive IT based systems

19. Threats
Cyclical economic downturns
Development of substitutes
Congestion of air space
International factors
LCCs of foreign countries

20. Proposed Project
• Start with 18 seater
• Connect tier-2 and Tier-3 cities across MH as per airports
operational status and availability
• Add more available seats per kilometer
• Selling of seats on pre-purchased / distribution / B2B & B2C
• Major routes to be considered where less connectivity by road or
surface transport takes more time
• Provide affordable ,cheaper,convinient,option to fly for masses
• A small step in inter state connectivity will increase traffic on metro
,thus rise in over all traffic ,

21. Challenges
• Government policies for small operators
• ATF prices
• Expect waiver in terms of landing /parking/taxes
• State ministry to come forward to underwrite seats ( as per mutual
agreement ) to give rise to state development ,further boost the
tourism business .
• DGCA and MoCA to work out possible options on providing unp-
recedented support to the project ,looking at long term vision .

22. Next step …..
Thanks –
• Data source from DGCA and AAI reports
• Mission & vision inline with MoCA