V. VSOMASUNDARAM, Board Member (Air Navigation Services), Airports Authority of India.

India in select league: 9th biggest aviation market in the world and likely to be 3rd biggest by 2020 Domestic traffic o 4th after the US, China and Japan o Airbus Industry projects domestic aviation market will be fastest growing in the world over next 20 years Passenger handling capacity: Risen from 72 million (FY 05-06) to 271 million (FY 11-12) Cargo handling capacity: Risen from 0.5 MMT (FY 05-06) to 3.5 MMT (FY 11-12) Operational Airports: Increased from 50 to 89 in the last 4 years International connectivity: 82 Foreign Airlines from 49 countries flying into India Number of Aircrafts: Increased from 225 in the year 2000 to 900 in the year

To meet the increasing demand, Government proactively liberalized both aviation and airport infrastructure policies. Private Sector participation in airlines and airports: o AAI Act and Aircraft Rules amended in 2004 to enable private participation Expansion of bilateral agreements: o India has 104 bilateral Air Service Agreements (ASAs) with foreign countries. o India signed 12 bilateral Air Services Agreements (ASAs) with foreign countries during the past six years. Declared open sky policy for cargo flights 3

Private investors allowed to set up greenfield airports while maintaining a distance of 150 km from the existing ones Complete tax exemption granted for 10 years (of the first 20 years) Development of new airports permissible entirely in private sector as well FDI permitted in the Aviation Sector: 4 Greenfield Projects100% (Automatic) Existing ProjectsUpto 74% (Automatic) beyond 74% with special permission of Govt. Ground Handling ServicesUpto 74% and investment by non-resident Indians upto 100% allowed on the automatic route. MRO, Pilot & Tech. Training InstitutesUpto 100% allowed on the automatic route

5 Air Navigation Services Provision of Air Navigation Service in India and adjoining oceanic airspace delegated to India by ICAO. Airport Development, operation, maintenance &management of airports in India. Airports Authority of India – Main functions

To meet the demand upfront successive Five Year Plans of GoI have provisioned increased investments in Aviation 6 Sector 10th Plan ( ) 11th Plan ( ) 12th Plan ( ) Whole Airport Sector$ 1.3 bn$ 7.2 bn$ 13.0 bn AAI (Public)$ 0.7 bn$ 2.5 bn$ 3.5 bn Air Navigation Services$ 0.8 bn Airlines$ 30.0 bn* * 376 Aircraft expected to be added in 12 th Five Year Plan

7 Non-metro AirportsFY06FY11 Coimbatore Mangalore Trichy Bhubaneshwar Trivandrum Jaipur Chandigarh while demand surges outside metros Normalized growth FY06→FY11 CAGR 12.5% CAGR 22.3% AirportsFY11 demand Capacity by Dec ’12 Delhi Mumbai29.140* Chennai12.023* Bangalore11.617* Hyderabad7.612 Kolkata9.624* Note: All pax numbers are in mn passengers per annum, as per AAI website Airport capacity is adequate in Tier-I Airport infrastructure is in place in Tier-I cities to support growth for the medium term. Starred capacity indicates ongoing expansions

Modernization of Delhi and Mumbai Airports, through JV route under PPP Greenfield airports at Bangalore and Hyderabad under PPP Modernization of Chennai & Kolkata Airports Modernization of more than 60 non-Metro Airports Greenfield airport at Pakyong, Gangtok (Sikkim) being developed by AAI Upgradation / Modernization of CNS / ATM system by AAI Operationalisation of cargo terminals at several airports 8

S.No.ParticularsRs. in Crores 1Aerodrome Works (Non-Metro Airports)7032 2Air Navigation Services ( Infra & Air Safety)3700 3GAGAN Project700 4Security3000 5Information & Technology100 6GSS-Equipment & Tech (I/c Aviation Safety Eqpt.)378

YEAR InternationalDomesticTotal A/c Movements (in ‘000) %age change A/c Movements (in ‘000) %age change A/c Movements (in ‘000) %age change

 New ATC Automation system for Chennai & Kolkata  Tower Automation  Additional Radars  ADS-B  Integrated Communication network backbone  Data link communication  Central ATFM  GBAS  GAGAN  Airspace Safety Monitoring  Amalgamation of 11 ACCs into 4 initially and finally 2 centres with multiple sectors Ongoing ANS New Projects and Future plans 11

Airport infrastructure Development -Commercial Development Strategies -Implementation of Environment management Systems Air navigation Services - Development of Aeronautical Information Systems - Satellite based navigation Training -Performance Based Navigation -Aeronautical Study