Contents - Ministry of Civil Aviation

ContentsCHAPTERPAGE NO.123456789101112Highlights 3Ministry of Civil Aviation 13Directorate General of Civil Aviation 21Bureau of Civil Aviation Security 29Commission of Railway Safety 33Indira Gandhi Rashtriya Uran Akademi 36Airports Authority of India 40Air India Limited 59Indian Airlines Limited 69Pawan Hans Helicopters Limited 92Hotel Corporation of India Limited 97Women Welfare 99

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Highlights 11.1 The year witnessed significant opening upof Indian skies paving the way for increasedinternational connectivity to/from India. Asignificant opening up took place in our airservices arrangements with Sri Lanka and 10ASEAN countries. Tourist charter guidelines werealso liberalised and for the first time privateIndian operators were allowed to fly on internationalroute. All these are alongside the increasein entitlements through normal process of bilateralconsultations with various countries. Theoverall impact, one might say, is first but firmsteps towards revolutionising the Indian skies.The major initiatives taken during this year are:-• ASEAN countriesWith a view to enlarging our economic cooperationwith ASEAN countries, it has beendecided that designated airlines of 10 ASEANcountries will be allowed to operate upto 7services to/from four metropolitan cities of NewDelhi, Mumbai, Chennai and Kolkata, subject toequal reciprocal rights to the Indian side and onexisting terms of commercial agreement with ournational carriers.Designated airlines of ASEAN countries will alsobe allowed to operate as many services as theywish, subject to reciprocal rights of equal numberof flights to 18 other destinations in India, viz.,Patna, Lucknow, Guwahati, Gaya, Varanasi,Bhubaneshwar, Khajuraho, Aurangabad, Goa,Jaipur, Port Blair, Cochin, Thiruvananthapuram,Calicut, Amritsar, Vishakhapatnam, Ahmedabadand Tiruchi.• Sri LankaIn view of the strategic importance of our relationswith Sri Lanka, the designated airlines of SriLanka will be allowed to operate daily services toDelhi, Mumbai, Chennai, Bangalore, Hyderabadand Kolkata and as many services as they wish, to18 other destinations in India, viz., Patna,Lucknow, Guwahati, Gaya, Varanasi,Bhubaneshwar, Khajuraho, Aurangabad, Goa,Jaipur, Port Blair, Cochin, Thiruvananthapuram,Calicut, Amritsar, Vishakhapatnam, Ahmedabadand Tiruchi, subject to reciprocal rights of equalflights to Indian carriers.• Private AirlinesIt has been decided to allow private airlines ofIndia to operate to all the SAARC countriesagainst unutilised Indian entitlements. JetAirways and Air Sahara have already commencedoperation to Sri Lanka and are in the processof commencing operation to Nepal andBangladesh.3ANNUAL REPORT 2003-2004

4• Bilateral PolicyIt has been decided to permit airlines of allcountries having bilateral Air Services Agreementswith India to operate 7 flights/week each to anytwo of the 12 international airports in Indiasubject to reciprocal rights being granted to theIndian carriers.• Signing of New Air Services AgreementA new Air Services Agreement (ASA) was signedwith Djibouti in New Delhi on 19 th May, 2003.The agreed text of an ASA with Tunisia was alsoinitialed on 14.2.2004 in Tunis. The total numberof countries having Air Service Agreement withIndia now stands at 99.• Review of Traffic RightsAvailability of traffic rights for operations of airservices to/from India was also reviewed as part ofthe on-going process of bilateral civil aviationconsultations with various countries viz. SouthKorea, Malaysia, Turkey, Italy, Gulf air ownerStates, UAE (Dubai), Thailand, Ukrain, Slovakia,Kyrgyzstan, Bhutan, Germany, Poland, Russia,South Africa, Pakistan, Sri Lanka, Ethiopia, UAE,Tunisia, Italy, Slovak Republic and Germany.• Resumption of air links with PakistanDuring the technical level talks with Pakistan heldon 1.12.2003, both sides agreed to resume airservices between the two countries from 1.1.2004.Pakistan International Airlines commenced theiroperations to India from 1 st January, 2004. IndianAirlines commenced operations to Pakistan from9 th January, 2004.• Charter PolicyTourist charter guidelines have been furtherliberalised by permitting operation of ‘InclusiveTour Charters’ with no limitation on frequency,size of the aircraft and points of call subject to theavailability of customs and immigration facilities.Indian passport holders have also been allowed totravel on inbound inclusive tour charters. Thereshall also be no restriction on frequency of flightand size of the aircraft in respect of outboundinclusive tour charters provided the concernedoutbound tour operator also organises inboundcharters with 2 : 1 tourist ratio between inboundand outbound operations.• Open Sky PolicyTo take care of the peak season rush, like in theprevious years, an Open Sky Policy was adoptedby the Government for the winter 2003-04,under which designated foreign airlines operatedadditional services to/from India subject to theexisting terms of the commercial agreement withAir India/Indian Airlines.1.2 ROADMAP FOR THE NEWNATIONAL CIVIL AVIATIONPOLICYA five member Committee under the Chairmanshipof Shri Naresh Chandra, former CabinetSecretary was constituted on 21.7.2003 to preparea roadmap for the new National Civil AviationPolicy. The Committee submitted its report on8.12.2003. The report was examined by theMinistry. A draft Civil Aviation Policy has beenproposed and is under active consideration of theGovernment.1.3 AMENDMENT OF AAI ACT 1994The Airports Authority of India (Amendment)Act, 2003 authorises AAI to transfer the operationsand management of its existing airports byway of long-term lease to private players. TheAct, inter-alia, provides for exclusion of privateairports like Bangalore International Airport Ltd.MINISTRY OF CIVIL AVIATION

(BIAL) from the ambit of AAI Act, except securityand ATC functions, which will continue to bedischarged by AAI. The Act also authorises AAIto charge Advance Development Fee (ADF) forthe development/ upgradation of existing airportsand for the setting up of greenfield airports. Inaddition, the Act also seeks to prevent and removeencroachment on airport land.1.4 RESTRUCTURING OF DELHI ANDMUMBAI AIRPORTSOn 11 th September 2003, Government decided torestructure the airports of Delhi and Mumbaithrough joint venture route. An EmpoweredGroup of Ministers (EGOM) was constituted todecide about the detailed modalities including thedesign parameters, bid evaluation criteria etc. forthe selection of joint venture partner. The meetingsof EGOM were held under the chairmanshipof the Finance Minister, in which draft Termsof Reference for the EGOM and selection ofFinancial Consultant for Delhi and Mumbaiairports were finalised. M/s. ABN-AMRO wasselected as the Financial Consultant. Request forExpression of Interest (EOI) has also been advertisedby AAI on 18 th February, 2004. The closingdate for submission of EOI is now 20.7.2004.Selection of Global Technical Advisor (GTA),appointment of Legal Consultant and Accounting& Tax Advisor (ATA) is the project is underprocess.1.5 GREENFIELD AIRPORTSPolicy on airport infrastructure already providesfor private sector participation for the developmentof greenfield airports. In the budget speechof 2002-2003, Government announced a packageof concessions to encourage private sector participationin construction of greenfield airports.Airports Authority of India (Amendment) Act,2003, inter alia, empowers AAI to levy AdvancedDevelopment Fee (ADF) at the existing airport(s)to help in financing the proposed new greenfieldairport(s).Concession Agreement between Government ofIndia and Bangalore International Airport Limited(BIAL) has been approved. Some issuesraised by BIAL on Concession Agreement havebeen examined in consultation with the Departmentof Legal Affairs.1.6 WITHDRAWAL OF IATTIn a landmark decision aiming to make air travelcheap and affordable to the travelling public,Government has withdrawn the Inland Air TravelTax (IATT) w.e.f. 9 th January, 2004 on all types ofdomestic journeys.1.7 REDUCED VERTICALSEPARATION MINIMA [RVSM]Reduced Vertical Separation Minima (RVSM) hasbeen introduced in the Indian and the surroundingairspace from 27 th November 2003. Thisfacility provides the airline operators the mostfuel-efficient cruising levels and reduced congestionthereby enhancing the airspace capacity. Allairline operators having RVSM capable modernaircraft, have heralded this decision.1.8 HAJ 2004Phase-I of Haj 2004 commenced on 24.12.2003and ended on 26.1.2004. 71,716 Haj pilgrimswere uplifted from India by Air India, IndianAirlines and Saudi Arabian Airlines to Jeddah forperforming Haj pilgrimage from Bangalore,Kolkata, Calicut, Lucknow, Chennai, Nagpur,5ANNUAL REPORT 2003-2004

6Jaipur, Ahmedabad, Mumbai, Delhi, Hyderabad,Gaya and Srinagar. There are 13 embarkationpoints for uplifting Haj pilgrims. Jaipur is a newembarkation point. In Phase-II of Haj 2004pilgrims were carried back from Jeddah to Indiaby Air India, Indian Airlines and Saudi ArabianAirlines from 4 th to 7 th March 2004.1.9 MODERNISATION/DEVELOPMENT OF AIRPORT/ATM SYSTEMSAs part of the ongoing modernisation and developmentof various airports, state-of-the-artInstrument Landing Systems Air Traffic Management(ATM) Systems have been installed orreplaced and passenger and cargo terminals havebeen expanded at various airports. Further,various civil/aerodrome/passenger facilitationworks have also been completed at Delhi,Mumbai, Kolkata, Chennai, Bhuj, Jabalpur,Ahmedabad, Bangalore, Gaggal, Lucknow,Varanasi, Leh, Mangalore andThiruvananthapuram airports.1.10 I.S.O. CERTIFICATIONAirports Authority of India has been awardedCertificate of Approval under ISO 9001 for theCoimbatore airport, Netaji Subhash Chandra BoseInternational (NSCBI) airport, Kolkata andSardar Vallabhbhai Patel International airport,Ahmedabad.1.11 CONTINGENCY PLAN TO REPAIRAIRPORTS/LANDING STRIPSDURING FLOODS / EARTHQUAKEETC.As a part of Disaster Management in the country,Ministry of Home Affairs identified “repair ofairports / landing strips damaged by floods /earthquake etc.” as the emergency response / supportaspect in respect of the Ministry of Civil Aviationand requested this Ministry to prepare a ContingencyPlan in this regard. In accordance with theguidelines of Ministry of Home Affairs, acomprehensive “Contingency Plan to repair airports/ landing strips damaged by floods / earthquake etc.”was prepared in consultation with AirportsAuthority of India and was put in place. Theobjective of this plan is to rehabilitate operationalpavements and buildings in the event of naturalcalamities in order to assure continuity or earlyresumption of services. A link to this “ContingencyPlan” document was created on the website of theMinistry of Civil Aviation and can be accessed atwww.civilaviation.nic.in.1.12 PERFORMANCE OF AIRPORTSAUTHORITY OF INDIAAirports Authority of India earned a profit (aftertax) of Rs.282.05 crores during the year 2002-2003 compared to Rs.266.98 crores during theyear 2001-2002. The organisation is expected toearn a profit (after tax) of Rs. 293.83 croresduring the current financial year 2003-2004.Airports Authority of India’s contribution to thenational exchequer was Rs. 332.74 crores for2002-2003 and Rs. 366.93 crores for 2003-2004,which includes Advance Tax Paid, Dividend,Interest Payments etc.1.13 AIR INDIA LTD.Air India introduced daily flights to / from Dubaito Mumbai, Delhi and Cochin. In addition, it alsoenhanced its frequencies fromThiruvananthapuram and Kozhikode to a dailyMINISTRY OF CIVIL AVIATION

operation effective 26 October, 2003 to 27 March2004. Thus, AI has daily flights to Dubai fromMumbai, Delhi, Kochi, Kozhikode andThiruvananthapuram with standardised departureseffective Winter 2003.From 28 th March, 2004, Air India has introducedthe following new additional flights :• 1 Singapore/Kuala Lumpur• 1 Nairobi /Dar-es-salaam• 1 Mumbai /Hyderabad /Jeddah viceversa• 1 Mumbai /Jeddah vice-versa• 1 Lucknow /Delhi /Jeddah vice-versa• 1 additional flight to Riyadh• 1 Al –Ain flight extended to Salalah(effective 01 April 2004)• 2 London terminators Mumbai / Amsterdam/London vice versa• 2 Delhi /Amritsar/ Delhi (effective 16April 2004)Financial Performance:- Air India earned a netprofit of Rs.133.86 crores during 2002-2003,compared to a net profit of Rs.15.44 crores during2001-2002. The airline is expected to earn aprofit of Rs. 20.50 crores during 2003-2004.1.14 INDIAN AIRLINES LTD.• New International Services:- Indian Airlinesintroduced new international twice weeklyflights between Jaipur-Bangkok/ Singaporeand Delhi- Lahore.• New Domestic Services:- Indian Airlinesintroduced new services between Delhi-Goa-Delhi, Guwahati-Dimapur, Guwahati-Aizwal, Kolkata-Shillong, Agartala-Silcharand Raipur- Chennai/ Vizag.• Customer Friendly Schemes:- Indian Airlinesintroduced various customer friendlyschemes : viz. IA Hot Seat, Smart SuperSaver, Smart Voyager, Executive Edge,Fortune Fifty and Super Saver.• Financial/Physical Performance:- IndianAirlines suffered a net loss (after tax) ofRs.196.56 crores during 2002-2003 comparedto a net loss (after tax) of Rs.246.75crores during the 2001-2002. During first sixmonths of 2003-2004 viz. April-September,2003, the airline suffered a loss of Rs. 103.50crores and is expected to close the year with anet loss of Rs.56.00 crores compared to thebudgeted loss of Rs.110.50 crores. It isexpected to carry 57.60 lakh passengersduring 2003-2004 compared to 62.32 lakhsduring 2002-2003. Overall load factor isexpected to be 67.9% compared to thebudget estimates of 67.0% during the year2003-2004.• Performance of Alliance Air:- Alliance Air (awholly owned subsidiary of Indian Airlines)suffered a loss (after tax) of Rs.85.00 croresduring 2002-2003 compared to a loss ofRs.56.97 crores during 2001-2002. Duringfirst six months of 2003-2004 viz. April-September, 2003, the airline suffered a loss ofRs. 36.64 crores compared to a loss ofRs.50.06 crores during April-September,2002. It carried 14.19 lakh passengers during2002-2003 compared to 15.29 lakhs during2001-2002. During the first six months of2003-2004 viz. April-September, 2003, theairline carried 7.33 lakh passengers comparedto 6.82 lakhs during April-September, 2002.The airline achieved a load factor of 59.92%during 2002-2003 compared to 60.30%during the year 2001-2002. During the firstsix months of 2003-2004 viz. April-September,2003, the airline achieved a load factorof 60.46% compared to a load factor of57.87% in April-September, 2002.7ANNUAL REPORT 2003-2004

81.15 PAWAN HANS HELICOPTERSLTD.Performance of Pawan Hans HelicoptersLtd.:- The company earned a net profit (after tax)of Rs. 41.57 crores (prov.) during 2003-2004. Thecompany registered a net profit (after tax) ofRs.15.39 crores during the financial year 2002-2003 compared to a net profit (after tax) ofRs.59.31 crores during the year 2001-2002. Thecompany has flown over 3.20 lakh hours andmade 11.5 lakh landings since its inception. Thecompany has achieved a total revenue flying taskof 22,780 hours during the year 2003-2004.1.16 SCHEDULED AIRLINEOPERATORSAt present, apart from Air India, Indian Airlinesand Alliance Air, Jet Airways, Sahara IndiaAirlines, Deccan Aviation Pvt. Ltd. and M/s BlueDart have the permission to operate domesticscheduled air transport services in the country.During April 2003 to December 2003, a total of1,64,673 flights were operated by the domesticscheduled operators carrying a total of1,07,02,837 passengers.1.17 NON-SCHEDULED AIRLINEOPERATORSAs on 31 st March 2004, a total of 42 companieswere holding Non - Scheduled Operator’sPermit.1.18 REGISTRATION OF AIRCRAFTAs on 31st March, 2004, there were 1130 aircraft(including micro light, gliders and balloons) onthe Indian civil register. Of these, 83 aircraft wereregistered during the period 1 st April, 2003 to 31 stMarch, 2004. A total of 411 aircraft are holdingcurrent certificate of airworthiness as on 31 stDecember 2003.1.19 AME LICENCESA total of 5749 Aircraft Maintenance Engineers(AME) licenses including Basic licenses and 282Flight Engineers (FE) licenses have been issued sofar, of which 190 AME licenses have been issuedduring the period 1 st April 2003 to 31 st March,2004.1.20 APPROVAL OF FIRMSSo far, a total of 581 firms have been approved formanufacture, maintenance, testing, storage etc. ofaircraft, aircraft components/equipment. Out ofthese, 72 are foreign firms.1.21 COCKPIT ENTRY DOORMODIFICATIONAfter the 11 th September 2001 incidents in USA,the Federal Aviation Administration revised therequirements of locking of cockpit doors duringthe flight. This has also been mandated byDGCA and the modification has been accomplishedon the entire fleet of affected aircraftregistered in India.1.22 FOG MANAGEMENTFog guidelines were issued for the aircraft operationsat IGI airport during fog. Necessary instructionswere issued to the pilots, air trafficcontrollers, apron control, metrological office etc.,to follow the procedures alongwith the LVP forsmooth and efficient flow of air traffic at IGIairport during fog. This year, besides 15 foreignMINISTRY OF CIVIL AVIATION

airlines, Indian Airlines and Air India were alsoable to operate flights during poor visibilityconditions, using CAT III A system installed atIGI airport, New Delhi. While only 12 lowvisibility departures took place last year, 55aircraft (25 international + 30 domestic) havecarried out low visibility take off during lastwinter till 31.12.2003.1.23 SECURITY• Introduction of advanced technologyThe areas identified for introduction of advancedtechnology are access control, perimeter security,X-ray baggage inspection system and detection ofexplosives. Apart from these, instructions havebeen issued to provide passenger friendly preembarkationsecurity checks at airports. In orderto supervise and facilitate implementation of theinstructions, a 5-member committee has beenconstituted. The committee has visited a numberof airports. Final report of the committee isawaited.• Deployment of specially trainedsecurity personnel from CISFSo far Central Industrial Security Force (CISF) hasbeen deployed at 47 airports. At the remainingoperational airports, CISF is being deployed in aphased manner.• Contingency planThe Bureau of Civil Aviation Security has aContingency plan to deal with emergencies arisingout of hijacking and other threats to civil aviation.• Training of security personnelDuring the year 2003, 49 training courses havebeen conducted and 2139 security personnel havebeen trained in aviation security. Two DeputyCommissioners of Security (CA) attended the“Aviation Security Instructors Course” fromDecember 8 to 16, 2003 and two AssistantCommissioners of Security (CA) attended thecourse on `Crisis Management’ from December, 1to 5, 2003 organised by ICAO at RegionalTraining Centre, Penang, Malaysia.1.24 INDIRA GANDHI RASHTRIYAURAN AKADEMIOf the 477 trainees inducted into IGRUA sinceinception till 27 th December 2003, the totalnumber of trainees passed out was 406 in differentcourses undertaken by the Akademi. Thetrainees included 27 foreign nationals.1.25 DEVELOPMENTAL ACTIVITIESTAKEN UP IN THE NORTH-EASTREGIONAlliance Air:- Alliance Air (a wholly ownedsubsidiary of Indian Airlines Ltd.) has taken 4ATR-42-320 aircraft on dry lease for 5 years fordedicated operations in the North Eastern Region.The lease period commenced from December2002. During the lease period, the total expenditureestimated is Rs.417.35 crores. The estimatedrevenue is Rs.227.21 crores, resulting in adeficit of Rs.190.14 crores. The leased aircraft areto be operated in the North Eastern Region on thebasis of agreed budgetary grant of Rs.35 croresper annum i.e. Rs.175 crores during the five-yearperiod from the Department of Development ofNorth-Eastern Region. The deficit, if any, will bemet by Alliance Air / Indian Airlines with increasein fares and other concessions expected from theGovernment like reduction of ATF prices, loweringof airport charges, including savings fromlanding and navigation charges etc. in the NorthEast.9ANNUAL REPORT 2003-2004

• The first aircraft arrived in India on 19 thDecember, 2002 whereas the secondaircraft on 23 rd December, 2002. Theremaining two aircraft arrived in February,2003.• The inaugural flight took off on 25 thDecember, 2002 and operated on sectorKolkata-Guwahati-Dimapur-Agartala-Kolkata.• The first commercial flight operated on2 nd January, 2003.• Gradually the flight operations increased.The ATRs are operating to a total ofnine stations i.e. Kolkata, Guwahati,Silchar, Dimapur, Agartala, Imphal,Aizwal, Lilabari and Shillong.Airports Authority of India:- AAI has takenfollowing developmental activities in the NE-Region:-• There are 24 airports / airfields in theeight states of North East Region out ofwhich Airports Authority of Indiamaintains and owns 20 airports. Presently,scheduled airlines are operatingtheir services through 11 airports.• Extension of runway from 6000 ft. to7500 ft. completed at Agartala airport.• Construction of boundary wall completedat Lilabari airport.• Commissioning of air operations andconstruction of boundary wall done atShillong airport.• Ground lighting facilities are availablefor night operation at Agartala,Guwahati, Jorhat, Tezpur, Dibrugarh,North Lakhimpur, Imphal and Dimapurairports. DGCA has approved nightoperation through Agartala andGuwahati airports only. There is aproposal to install ground lightingfacilities at Silchar also during the 10 thFive Year Plan.• Instrument Landing Systems (ILS) areavailable at Guwahati, Agartala, Imphal,10New Terminal Building, City Side, LilabariMINISTRY OF CIVIL AVIATION

Dibrugarh and are planned at Dimapur,Lilabari and Silchar. The works forinstallation of ILS at Lilabari andDimapur airports are likely to be completedduring 2004-05 and at Silcharduring 2005-06.• All the airports owned by AAI haverunway length of 7500 ft. and 9000 ft.where scheduled airlines are operating,except the airport at Shillong. Theairports at Kamalpur and Tezu aresuitable for operation by 50 seater typeof aircraft.• During the 9 th Five Year Plan, newterminal buildings were constructed andcommissioned at Guwahati, Dimapur,Imphal, Tejpur and during the 10 th FiveYear Plan new terminal buildings wereconstructed at Agartala and Lilabari.• Extension of runway to 7500 ft. withground lighting and associated facilitiesat Dibrugarh airport. Construction ofnew terminal building for 500 passengerswas also done at Dibrugarh airport.• Extension of runway to 7500 ft. withground lighting and associated facilitiesat Silchar Airport.• Pawan Hans Helicopters Ltd.:- Helicopterservice in the North EasternRegion:-• Arunachal Pradesh:- PHHL provided aDauphin helicopter SA365N to Governmentof Arunachal Pradesh from December1995 which is being utilised bythe State Government for servicesconnecting Itanagar with Guwahati,Mohanbari, Pasighat, Roing, Tezu, Ziro,Namsai, Along, Yingklong, Miao,Changlang, Daporijo etc. In addition,one MI-172 helicopter has been deployedfrom August 2002 for ferryingpassengers and carrying cargo (airmaintenance).• Meghalaya:- PHHL provided oneDauphin helicopter on wet lease to theGovernment of Meghalaya w.e.f. 15 thFebruary 1999. The State Governmenthas been operating daily passenger flightson the Guwahati-Shillong-Tura sectorand other sectors within the state.• Sikkim :- PHHL provided a 5-seaterBell helicopter on wet lease to theGovernment of Sikkim since 31 st October1998. The State Government hasbeen operating daily passenger/touristflights on Gangtok-Bagdogra-Gangtoksector (6 days in a week) and otherflights (joy ride to Kanchanjunga) forcarrying tourists.• Ministry of Home Affairs(MHA) :-MHA has been utilising PHHL’s Dauphinhelicopter since 1996 every year.The helicopter is based at Guwahati andis utilised for transportation of ministersand senior officers of the Central Governmentto important centres in theNorth East.• Tripura:- PHHL provided a Bell 407helicopter on wet lease to the Governmentof Tripura w.e.f. 25 th September2002 for regular passenger serviceswithin the state.• NHPC:- PHHL provided a 5 seater Bellhelicopter to NHPC w.e.f. 27 th October2000. The helicopter is based atItanagar, Arunachal Pradesh and is being11ANNUAL REPORT 2003-2004

utilised by them to meet their ownrequirements.• Oil India Ltd.:- PHHL provided a 3seater Robinson R-44 helicopter to OilIndia Ltd. w.e.f. 10 th May 1994. Thehelicopter is based at Guwahati, Assamand is being utilised by them to meettheir own requirements.*****10MINISTRY OF CIVIL AVIATION

Ministry of Civil Aviation22.1 INTRODUCTIONThe Ministry of Civil Aviation is located in RajivGandhi Bhawan at the Safdarjung Airport complexin New Delhi which is a spacious four floormodern building with lush green lawns andcolourful seasonal flowers in its surroundings,creating an ambience of serenity and peace.2.2 MAIN FUNCTIONSThe Ministry of Civil Aviation is responsiblefor the formulation of national policies andprogrammes for the development and regulationof civil aviation and for devising and implementingschemes for orderly growth and expansion ofcivil air transport. Its functions also extend tooverseeing the provision of airport facilities, airtraffic services and carriage of passengers andgoods by air. The Ministry is also administrativelyresponsible for the Commission of Railway Safety,a statutory body set up under the Railway Act.2.3 ORGANISATIONThe Ministry of Civil Aviation has under itsANNUAL REPORT 2003-2004Rajiv Gandhi Bhawan, S.J. Airport, New Delhi11

14administrative purview the following organisations:-(i)Attached/Subordinate Organisations.• Directorate General of Civil Aviation(DGCA)• Bureau of Civil Aviation Security(BCAS)• Commission of Railway Safety (CRS)(ii) Autonomous Body• Indira Gandhi Rashtriya Uran Akademi(IGRUA)(iii) Public Sector Undertakings• Air India Ltd. (AIL)• Indian Airlines Ltd. (IAL)• Airports Authority of India (AAI)• Pawan Hans Helicopters Ltd. (PHHL)• Alliance Air – A subsidiary of IndianAirlines Ltd.• Hotel Corporation of India (HCIL)– Subsidiary of Air India Ltd.• Air India Charters Limited (AICL)– Subsidiary of Air India Ltd.The organisational set-up of the Ministry of CivilAviation is at Annexure I at the end of thechapter.The Secretary in the Ministry is assisted by oneAdditional Secretary & Financial Advisor, threeJoint Secretaries, eight officers of the level ofDirector/Deputy Secretary/Financial Controllerand ten officers of the level of Under Secretary/Assistant Financial Controller. Functions of theMinistry are distributed among sixteen sections,which form the primary work units.In addition to framing policies, the Ministryprovides guidance to these organisations in theimplementation of policy guidelines; monitors andevaluates their interface with Parliament.2.4. ORGANISATION AND METHODSInstructions were issued from time to timestressing the need for observance of variousprovisions of the “Manual of Office Procedure”.Corrective measures are being taken to rectify thedeficiencies noticed through annual inspections ofsections of the Ministry. Adequate attention waspaid to check delay in disposal of cases. Pendencyposition, especially VIP and PMO references, wasclosely monitored. In-service training needs of theofficers/staff of the Ministry were given adequateattention and a number of officers / staff wassponsored for various computer-training coursesthrough NIC, ISTM, etc. As in the past, underthe scheme of grant of cash awards to the bestthree sections in the Ministry, cash awards for theyear 2001-2002 were finalised. Grant of cashawards received appreciable coverage in January,2004 issue of the monthly newsletter “CivilServices News” published by the Ministry ofPersonnel, Public Grievances and Pensions.During this year, the work relating to the writingof organisational history of various organisationsunder this Ministry, initiated in compliance of theprovisions of the Public Records Act, 1993, hasbeen completed with the submission of organisationalhistory of PHHL to the National Archivesof India for their records.2.5 RECORDS MANAGEMENTDue importance was given to records managementin the Ministry. Various aspects of recordsmanagement viz. recording, reviewing, weedingout of old records/files, were given adequateattention. Two special drives were launchedduring 2002-03. This year also, two specialdrives, apart from normal process of recording,MINISTRY OF CIVIL AVIATION

were launched. Besides, close liaison was maintainedwith the National Archives of India fortransfer of records required for permanent retention,as also for microfilming of the records. Thematter of setting up of “Centralised DepartmentalRecords Room” and nomination of a RecordsOfficer in various organisations under this ministryis being pursued vigorously.2.6 MODERNISATIONANNUAL REPORT 2003-2004With the active involvement of NationalInformatics Centre (NIC), this Ministry has a fullfledgedcomputerised environment with E-mailand Internet facility. A comprehensive userfriendlymenu driven package “Office ProcedureAutomation (OPA)” has been implemented inClient/Server version under Windows environment.The data from the earlier version of OPA,which was operational under Oracle RDBMS sinceJan’1996, has been successfully ported into thenew system and implemented in all sections. Thisenabled the Ministry to successfully switch overfrom non-Graphical User Interface (non-GUI)based OPA to GUI based Windows OPA. A“Composite Payroll System (CPS)” developed byNIC’s Accounting Informatics Divisions, with theinvolvement of Controller of General Accounts(CGA), Ministry of Finance, for all Central Governmentoffices has been implemented and madeoperational. A web enabled Parliament QuestionSoftware (PQSoft) is already in place in theMinistry. All Parliament Questions and theirreplies are being transmitted electronically to LokSabha and Rajya Sabha after question hour. Aweb enabled Parliament Assurance module hasbeen developed and will be implemented shortly.A web. endded application PGRAMS has alsobeen implemented and is operational. The Ministry’swebsite viz. http://civilaviation.nic.in hasbeen hosted on NIC server and is being updatedregularly.A proposal for comprehensive integrated computerisationin the offices under Directorate Generalof Civil Aviation has been prepared. System studyfor some of the modules is underway. Flight CrewLicensing System including medical examinationmodule as well as AME/Pilots Examinationssystem for the Central Examination Office underDGCA have been developed/converted to VB/SQL under Windows and implemented. Theresults of AME/ Pilots’ Examinations are publishedon the internet through the DGCA Websiteviz. http://dgca.nic.in. Photo Identity Card (PIC)issuance system for access into airports has beenimplemented for BCAS. Necessary training isbeing provided by NIC, as and when required, tothe concerned officers and staff on the packages inuse and other facilities.2.7 PUBLIC GRIEVANCE REDRESSALMACHINERYPublic Grievance Redress Machinery (PGRM) inthe Ministry of Civil Aviation is headed by a JointSecretary who has been designated as the “PublicGrievance Officer”. All organisations under theMinistry too have full-fledged grievance redressmachinery headed by a designated “Nodal Officer”,for dealing with the grievances received bythem through various sources. Instructions issuedby the Department of Administrative Reformsand Public Grievances with regard to the observanceof every Wednesday as meeting-less day,display of name / details of the Public GrievanceOfficer, picking-up of grievances appearing innewspapers for necessary remedial action, fixationof time limits etc. are being implemented. Em-15

16ployees with direct public interface are beingidentified and sent to training programmes by therespective organisations so as to sensitise them forcareful handling of the assigned tasks. The positionof public grievances is closely monitored inthe Ministry with all the organisations under itscontrol.2.8 ADMINISTRATIVE & STAFFGRIEVANCE REDRESSALMECHANISMStaff Grievance Cells under designated StaffGrievance Officers are functioning in the Ministryand all its organisations for speedy disposal ofcomplaints and representations of the servingemployees. All cases regarding revision of pension/family pension in respect of old pensioners andtheir families consequent upon the implementationof the recommendations of the Fifth PayCommission have been settled by the Staff GrievanceCell in the Ministry within the given timeframe. Payment of pension and other retirementbenefits were also promptly settled. To ensurepunctuality and discipline, periodical and surprisechecks were made. Harmonious relationship wasmaintained with the members of the staff.2.9 WELFARE OF MINORITIESGovernment’s 15-point directive about the welfareof minorities, inter alia, envisages that when largescaleemployment opportunities are provided by theRailways, Nationalised Banks and Public SectorEnterprises, it should be ensured that specialconsideration is given to recruitment from minoritycommunities. All public enterprises under theadministrative purview of this Ministry have beenasked to comply with the directive of theGovernment and also to continuously monitor theprogress of implementation of this programme.Periodical returns from all the organisations underthe Ministry are called for to watch the compliance/progress.2.10 VIGILANCE MATTERSThe Vigilance Unit of the Ministry is headed by aChief Vigilance Officer (CVO) of the rank of JointSecretary appointed in consultation with theCentral Vigilance Commission, who functions asthe nodal point in the vigilance set up of theMinistry. The secretarial assistance to the CVO inthe Ministry is given by the Director, UnderSecretary and Vigilance Section of the Ministry.The Vigilance Unit in the Ministry, inter alia,monitors and coordinates vigilance activities of theoffices and Public Sector Undertakings/AutonomousBody under its administrative control.Preventive vigilance continues to receive priorityattention with primary emphasis on identificationof sensitive/prone areas for malpractice andtemptation. The guidelines and instructionsissued by the Department of Personnel & Trainingand Central Vigilance Commission from time totime in this regard are followed.In pursuance of the Central Vigilance Commission’sdirections, ‘Vigilance Awareness Week’ wasobserved in the Ministry from 3.11.2003 to8.11.2003. Secretary, Ministry of Civil Aviationadministered the ‘PLEDGE’ to all the employeesof Ministry on 3 rd November, 2003.In the main Ministry, during the year 2003-2004,there were ten (10) disciplinary/ vigilance casespending, of which one has been disposed off.2.11 WELFARE OF SCs/STs/OBCsA cell exists in the Ministry of Civil Aviation forliaison work relating to reservation for ScheduledCastes and Scheduled Tribes and Other BackwardMINISTRY OF CIVIL AVIATION

Classes in posts and services in the Ministry andits various organisations. Similar cells also exist invarious organisations under the control of thisMinistry. The orders / instructions issued by theGovernment in regard to reservation are broughtto the notice of all the organisations under theMinistry for implementation. All periodicalreturns on the subject are regularly furnished tothe Department of Personnel & Training andMinistry of Social Justice & Empowerment.Representations/ complaints /grievance petitionsreceived from Scheduled Castes / Scheduled Tribesemployees / Associations are examined andremedial action taken wherever required.In order to see the proper implementation ofreservation orders/ instructions, a team from theSC/ST Cell, under the overall guidance of theLiaison Officer of the Ministry conducted annualinspection of the reservation rosters of the officesof Air India, Indian Airlines, Airports Authority ofIndia & Directorate General of Civil Aviationlocated at Hyderabad and Chennai and submitteddetailed reports. Follow -up action was taken onthe reports.As on 31.3.2004, the representation of ScheduledCastes and Scheduled Tribes employees in theMinistry and various Organisations under itscontrol, is as under: -Name of the Total No. of Total No. Percentage Total No. Percentage (%)Organisation Employees of SC (%) of STEmployeesEmployees(1) (2) (3) (4) (5) (6)Ministry(main) 216 46 21.29 10 4.62DGCA 704 158 22.40 40 5.60BCAS 209 22 10.52 5 2.39CRS 133 21 15.79 08 6.10IGRUA 221 43 19.45 01 0.45AI 15189 3586 23.61 1037 6.83IA 18779 3668 19.53 1159 6.17AAI 21147 5413 25.60 1116 5.27PHHL 613 91 14.84 39 6.36HCI 1752 470 26.83 91 5.192.12 WELFARE OF SENIOR CITIZENSIn accordance with the guidelines issued byMinistry of Social Justice & Empowerment, asenvisaged in the National Policy on Older Persons,instructions have been issued to all theconcerned organisations under this Ministry toensure prompt, fair and humane treatment forolder persons. Instructions were issued to -ANNUAL REPORT 2003-2004• Remove all physical barriers to facilitateeasy entry, movement and exit at allairports and in airlines;• Change the design of the frisking boothsin the security hold area so that olderpersons are not required to climb stepsand step down while undergoing securitychecks;17

18• Pay special attention for providingassistance to older persons particularlyafter alighting from the taxi at theairports till the person reaches the checkincounters;• Pay special attention to older personsand those needing assistance at thebooking offices of airlines;• Give preference in reservation andearmarking of seats in the airlines;• Give widows special consideration insettlement of benefits and compassionateappointment on the demise of thespouse;• Fix responsibility for any delaycaused in settlement of pension, providentfund, gratuity and other retirementbenefits.Currently Air India offers senior citizens discountof 55% on the basic domestic fares for malepassengers of 65 years and above and for femalepassengers of 63 years and above. Air India alsooffers senior citizens discount of 25% on internationaltravel westbound to USA/UK and Europeduring the lean period. Air India takes utmostcare of the senior citizens and provides specialhandling at the airports, wheel chairs on departures/arrivals, choice of seat allocation on theflight and choice of any special meal requested atthe time of making reservations.Indian Airlines offers 50% concession to seniorcitizens.2.13 PROTECTION OFENVIRONMENTKeeping in view the guidelines of the Ministry ofForests and Environment all the organisationsunder this Ministry were given instructions tomake every effort to protect the environment.2.14 OFFICIAL LANGUAGEIn this Ministry, Hindi Salahkar Samiti, has beenreconstituted with a view to rendering properadvice on the implementation of the provisions ofthe Official Languages Act, 1963 and the OfficialLanguages Rules, 1976. The Hon’ble Minister isthe Chairman of this Samiti.The officers of the Ministry were encouraged touse Hindi under different incentive schemesconducted by the Department of Official Languageas well as quarterly special incentive scheme(progressive use of Hindi) conducted by Ministryof Civil Aviation.The Ministry and its organisations carried outinspections to ensure implementation of OfficialLanguage Policy and suggested various necessarymeasures.2.15 ACCOUNTING ORGANISATIONSecretary (Civil Aviation) is the Chief AccountingAuthority of the Ministry of Civil Aviation. TheAdditional Secretary & Financial Advisor and theFinancial Controller assist the Chief AccountingAuthority. The Financial Controller is assisted byan Assistant Financial Controller, 5 Pay & AccountsOfficers (PAOs) and 2 Principal AccountsOfficers. Out of 5 PAOs, PAO (DGCA) and PAO(Secretariat) are located in Delhi and the otherPAOs are located at Mumbai, Kolkata andChennai. The Principal Accounts Office consolidatesthe accounts of the entire Ministry and otherrelated matters, apart from co-ordinating theadministrative functions of all the PAOs. Monthlyaccounts are compiled by PAOs on computer withthe help of a package called ‘IMPROVE’. A newpackage for computerisation of accounts of PAOcalled ‘COMPACT’ is also now under implemen-MINISTRY OF CIVIL AVIATION

tation. At the close of each financial year, thePrincipal Accounts Office compiles AppropriationAccounts, Finance Accounts and Statement ofCentral Transactions, pertaining to the Ministry.Internal audit - There is an “Internal AuditWing” in the accounting organisation led by anAccounts Officer and supervised by the AssistantFinancial Controller under the overall charge ofFinancial Controller. This wing is responsible forinternal inspection of accounts maintained by theMinistry and its subordinate and attached officeslocated across the country. The work of audit iscarried out in accordance with the instructionsand procedures laid down in the Internal AuditManual. Internal Audit Wing ensures that rules,regulations relating to accounting and financialsystem are properly followed, and serious irregularities/omissions etc. seen during internal auditare brought to the notice of the Heads of Departmentsfor remedial action.2.16 AUDIT PARASA total of 51 audit paras are outstanding as on31.3.04. Action Taken Notes (ATNs) have beensent to audit in respect of 19 paras. Of these 19paras, remarks of audit have been received inrespect of 12 paras and replies of audit in respectof remaining 7 paras are awaited. Further actionin respect of these paras where remarks of audithave been received, is being taken. Organisationwisebreak-up of pending audit paras is asunder:-Name of thePendingorganisationParas1. Ministry of Civil Aviation (main) 42. Airports Authority of India 193. Air India Limited 104. Indian Airlines Limited 145. Pawan Hans Helicopters Limited 4Total 51*****19ANNUAL REPORT 2003-2004

Annexure -1ORGANISATIONAL SET-UP OF THE MINISTRY OF CIVIL AVIATIONMinistry of Civil AviationAs on 31.03.2004Attached /SubordinateOrganisationsPublic Sector UndertakingsAutonomous OrganisationDGCA BCAS CRSIGRUAAAI AI IA PHHLAllianceAirHCILAICL20MINISTRY OF CIVIL AVIATION

Directorate General ofCivil Aviation33.1 INTRODUCTIONThe Directorate General of Civil Aviation is theprincipal regulatory body in the field of civilaviation. It is responsible for regulation of airtransport services to/from /within India and forformulation and enforcement of civil air regulations,air safety and airworthiness standards. Italso co-ordinates all regulatory functions withInternational Civil Aviation Organisation (ICAO).3.2 ORGANISATIONThe Directorate General of Civil Aviation isheaded by the Director General of Civil Aviationwith headquarters in New Delhi. The DirectorGeneral has the following Directorates underhim:-i) Directorate of Regulation & Information.ii) Directorate of Air Transport.iii) Directorate of Airworthiness.iv) Directorate of Air Safety.v) Directorate of Training & Licensing.vi) Directorate of Aerodrome Standards.vii) Directorate of Flying Training.viii)Directorate of Flight Inspection.ix) Directorate of Research & Developmentx) Directorate of Administration.3.3 FUNCTIONSThe Directorate General of Civil Aviation isresponsible for the following functions:-• Regulation of air transport services to/from/ within India in accordance withthe provisions of the Aircraft Rules,1937.• Licensing of pilots, aircraft maintenanceengineers and monitoring of flight crewstandards;• Registration of civil aircraft;• Co-ordination of the work relating toInternational Civil Aviation Organisation;• Investigation of minor air accidents andincidents and rendering technical assistanceto the Courts/ Committees ofInquiry appointed by the Government;• Supervision of training activities ofFlying/ Gliding Clubs;• Licensing of aerodromes and air carriers;• Rendering advice to the Government onmatters pertaining to air transportincluding bilateral air services agreementswith foreign countries;• Development of light aircraft, glidersand winches;21ANNUAL REPORT 2003-2004

22• Laying down airworthiness requirementsfor civil aircraft registered in India andgrant of Certificate of Airworthiness tosuch aircraft;• Processing amendments to the AircraftAct, 1934 and the Aircraft Rules 1937,and other Acts relating to aviation, witha view to implementing in India theprovisions of the Chicago Conventionand Annexes thereto and other internationalconventions relating to aviation;• Type certification of aircraft.3.4 AIR SERVICES AGREEMENTSDuring 2003-2004, bilateral talks were held withGulf countries, Thailand, Slovak Republic,Djibouti, Pakistan, Poland, Nigeria, UK, Ethiopia,UAE and Tunisia to review the existingbilateral arrangements. As a result of this, additionalcapacity of 9392 seats per week wasgranted to the designated airlines of India and therespective foreign countries.The bilateral talks with Pakistan on the 01 stDecember 2003, resulted into restoration ofstatus-quo-ante obtaining prior to January 2002.For this purpose, both countries agreed to opentheir respective air spaces for over flights for theairlines of both countries.3.5 AIR TRANSPORT• Tourist ChartersThe Tourist Charters Guidelines have been furtherliberalised vide Aeronautical Information CircularNo. 2/2004. Now Indian passport holders arepermitted by tourist charter flights under touristpackage. The provision of minimum amount to bespent by the foreign tourists has been abolished. Atotal of 536 tourist charter flights were operatedto India during April 2003 to March 2004,bringing a total of 1,23,134 tourists in India bycharter.• Non-Scheduled Operator’s PermitAs on 31 st March, 2004, 42 companies haveNon-Scheduled Operator’s Permit.• Domestic Scheduled OperatorsApart from Air India, Indian Airlines and AllianceAir, Jet Airways and Sahara India Airlines havethe permission to operate scheduled air transportservices to Colombo, Dhaka and Kathmandu inaddition to the domestic sector. Further, duringthe year, Deccan Aviation Pvt. Ltd. and M/s. BlueDart have been approved for scheduled domesticoperations.During April to December 2003, a total of1,64,673 flights were operated by the domesticscheduled operators carrying a total of1,07,02,837 passengers. During the same period,M/s Blue Dart carried a total cargo of 21,654metric tones.3.6 INTERNATIONAL CO-OPERATIONThe following activities were undertaken forinternational co-operation :-• The Aviation Security (Operations)Course and Structural Inspection onAgeing Aircraft programmes were heldunder Co-operative Development ofOperational Safety and ContinuingAirworthiness Programme (COSCAP)during the year.• Under European Union Civil AviationProject, about 20 courses were conductedon airworthiness related subjects.During the year, 12 courses concerningMINISTRY OF CIVIL AVIATION

Research & Development, were alsoconducted which were attended by 18officers of Research & DevelopmentDirectorate. The training has till datebenefited 569 DGCA officials and 438personnel from the aviation industry.3.7 AIRWORTHINESS• Registration of aircraft:- As on 31stMarch, 2004, there were 1130 aircraft(including micro light, gliders andballoons) on the Indian civil register. Ofthese, 83 aircraft were registered duringthe period 1 st April, 2003 to 31 st March,2004. A total of 411 aircraft have currentcertificate of airworthiness as on 31 stDecember 2003.• Licensing of Aircraft MaintenanceEngineers:- A total of 5749 AircraftMaintenance Engineers (AME) Licensesincluding Basic Licenses and 282 FlightEngineers (FE) Licenses have been issuedso far, of which 190 AME licenses havebeen issued during the period 1 st April to31 st March, 2004.• Approval of firms:- So far, a total of 581firms have been approved for manufacture,maintenance, testing, storage etc. ofaircraft, aircraft components/equipment.Out of these 72 are foreign firms.• Cockpit Entry Doors Modification:-After the 11 th September 2001 incidentsin USA, the Federal Aviation Administrationrevised the requirements oflocking of cockpit doors during theflight. This has also been mandated byDGCA and is made applicable to aircrafthaving a door between the passenger andpilot compartment and engaged inscheduled air transport services (passenger)or all cargo operations whereprovision is also available to carrypassengers. The modification has beenaccomplished on the entire fleet ofaffected aircraft registered in India.• RVSM in the Indian and surroundingairspace: - Reduced Vertical SeparationMinima (RVSM) has been introduced inthe Indian and surrounding airspace on27 th November, 2003 between flight level290 and 460. This would result in fuelefficiency, reduced congestion andenhanced air capacity.• Helicopter Cell:- In view of the increasedhelicopter activities in tourismand adventure sports as also certainaccident/ incidents involving them, ahelicopter cell has been specially constitutedin DGCA. This has to look into allaspects of helicopter operations andmaintenance, including evolving guidelinesin respect of take-off and landingprocedures, special designated areas atairports, security procedures etc.3.8 EXAMINATIONThe Central Examination Organisation has beenconducting examinations throughout the year forthe issue and/ or extension of flight crew andaircraft maintenance engineer’s license at variousexamination centres. The schedule of examinationsfor the entire year is placed well in time onDGCA web site http://dgca.nic.in. The detaileddata of the examinations conducted during theperiod from 1 st April 2003 to 31 st March, 2004are as follows: -23ANNUAL REPORT 2003-2004

AME PILOT TOTALTechnicalGeneralNo. of applicants 16,111 3,917 4,745 24,773No. of papers 29,521 6,206 10,104 45,831No. of candidates admitted in special 05 44 27 76examinations24The results of successful candidates are alsodisplayed on the DGCA website besides beingmade available on E-mail to all Regional/ Sub-Regional offices of the DGCA.A grievance cum inquiry cell has been establishedfor the candidates to expedite their queries andredress of their grievances.3.9 TRAINING AND LICENSING OFAIRCREW• Basic Flying TrainingFlying /gliding training is provided by variousflying/ gliding clubs and institutes spread all overthe country. Presently there are 39 flying clubs/institutes of which 11 are privately owned.IGRUA is also imparting flying training tostudent pilots in India.A government gliding centre at Pune run by theDGCA provides gliding training. Besides this,there are 5 gliding clubs and 5 gliding wings ofthe flying clubs.A total of 15246:45 instructional hours wereperformed by the flying clubs during April 2003to March 2004. A total of 7273 launches wereperformed by the gliding clubs during this period.DGCA released an amount of Rs. 19,25,380/-tothe flying clubs under the flying subventionscheme. DGCA also conducted exam to select 40SC/ST candidates for award of free flying up toPPL. Twelve oral exams for FIR(A)/AFIR(A) and27 inspections of flying clubs have been carriedout. Ten approvals have been granted to CFI/CFIIin various flying clubs.• Licensing of air crewDuring the year 2003-04, a total of 513 pilots’licences/ ratings were issued by the DGCA. Thetotal number of aircrew licences till 31st March,2004 has gone up to 31,919. In addition, 68foreign pilots licenses were validated during 2003under rule 45 of the Aircraft Rules, 1937.3.10 FLIGHT INSPECTIONDuring the year 2003, Flight Inspection Directoratecarried out the following major activities: -• 123 Cockpit En-route, 47 Cabin, 33Station Facility and 21 Ramp Inspectionswere carried out in respect ofscheduled airlines.• Simulators of Air India and Jet Airwaysat Mumbai, of Indian Airlines atHyderabad and of Indira GandhiRashtriya Uran Akademi (IGRUA) atRae Bareilly, were evaluated/approved.• Approval of IGRUA as flight traininginstitute was revalidated.• Three training institutes of the Ministryof Defence were revalidated. FlightTraining Device (B.737-300) of M/s JetAirways was evaluated and approved.• Main base inspections of Alliance Air(Delhi base), Pawan Hans HelicoptersMINISTRY OF CIVIL AVIATION

Limited (Mumbai base) and SaharaAirlines (Delhi base) were conducted.• 60 training captains of various scheduledairlines were granted approval to functionas check pilot/instructors andexaminers.• Under EU-India Civil Aviation Project 7training courses and 3 training coursesunder COSCAP-SA were conducted.• Training approvals were granted to 80individual pilots for multi-engine endorsementand 125 approvals for variousgeneral aviation operators for endorsementon various types of aeroplanes andhelicopters. In order to enhance safety ofaircraft operations of scheduled/ nonscheduledand general aviation operators,two Civil Aviation Requirements (CARs)were issued.• Standard operating procedure for operationto 8 new stations and criticalairfields were examined and approved.• Air India and Indian Airlines have beengranted standard authorisation forconduct of ILS CAT III-A operations.• 89 Flight Dispatchers of scheduledairlines were approved/ revalidated underthe provisions of the CAR on the subject.3.11 AERODROME STANDARDSDGCA under ICAO- COSCAP conducted workshopsand on the job training for the officers ofvarious airport owners/ operators along withDGCA officers. The details for preparation of‘Aerodrome Manual’ were discussed and templatemanuals were prepared. DGCA is also gettingadvanced workshops conducted under EU-Indiacivil aviation project for establishment of safetyANNUAL REPORT 2003-2004systems at aerodrome, which will be mandated byyear 2005.During the year 2003-04, the following importantactivities were undertaken:• Integrated airspace management of thenewly proposed Bangalore Internationalairport at Devanhalli was discussed withthe representatives from AAI, HAL-Bangalore, IAF-Yelahanka, DRDO andMoD. The various aspects of airspaceallocation were discussed and the airspacestructure was finalised.• Reduced Vertical Separation Minima(RVSM) was implemented in the IndianFIRs w.e.f. 27.11.2003 along with theneighboring countries in South Asia,Nepal and Pakistan etc.• Helicopter services to Kedarnath byPHHL was approved.• Fog guidelines were issued for the aircraftoperations at IGI airport during fog.The necessary instructions were issued tothe pilots, air traffic controllers, aproncontrol, meteorological office, etc. tofollow the procedures during fogalongwith the LVP for the smooth andefficient flow of air traffic at IGI airportduring fog.• Inspection of Cochin InternationalAirport (CIAL) was carried out forrenewal of the authorisation for scheduledairline operations both domesticand international.• License renewal in private category fortwenty-eight airfields after inspection.• Inspection was carried out for Port Blairrunway for operationalisation andinstallation of ILS.• Port Blair airport was cleared for scheduledoperations of Airbus 320.25

263.12 AIR SAFETY• GeneralThe Air Safety Directorate carried out its dutiesand responsibilities relating to investigation ofnotifiable accidents/incidents, prevention ofaccidents/incidents and birds strike preventionprogramme. Under the accident preventionprogramme, in-flight inspections of airlines, safetyaudits of airline operators and various aerodromesalong with the facilities therein were carried out.Follow -up action was also taken on the recommendationsemanating from the inquiry reports ofaircraft accidents/incidents.• Aircraft AccidentsDuring the period 1 st April 2003 to 31 st March2004, there have been 10 notifiable accidents toIndian civil registered aircraft. All the accidentshave been investigated / are being investigated tofind out circumstances leading to the accidents.Action is taken on the recommendations made inthe investigation reports to prevent recurrence.• Prevention WorkDGCA has made CAR making it mandatory forall scheduled air transport operators and majornon-scheduled operators having aircraft equippedwith DFDR to monitor flight data of all theflights so as to determine the exceedances fromstipulated limits in flight parameters on operationsand engineering aspects. All scheduledairlines like Air India, Indian Airlines, Jet Airways,Sahara India Airlines and Alliance Air havecommissioned the above programme in theirrespective organisations.The safety recommendations emanating fromvarious courts/ committees of inquiries intoaircraft accidents are followed up with theconcerned aviation agencies for their early implementation.These recommendations were reviewedin the 28 th meeting of the standingcommittee held on 26 th December 2003 under thechairmanship of Director General (Civil Aviation)wherein representatives of Airlines, AirportsAuthorities of India, Meteorological Department,Ministry of Defence and Pawan Hans HelicoptersLimited participated.Computerisation of the records relating to flightcrew duty time limitations, crew training, qualification,medical and licence validity has been mademandatory for all airlines. This has enabledinstantaneous monitoring of crew records for theirvalidity prior to operating flights. All scheduledairlines have confirmed the introduction of thissystem.Dedicated safety audit teams of DGCA carriedout periodical safety audit of operational, engineeringand other aviation-oriented managementactivities of the airlines. During the period April,2003 to 31 March 2004, seven such safety auditsof airlines, flying academies and institutes havebeen carried out.DGCA officers and airline operators had carriedout in-flight cockpit inspection and in-flight cabininspection including inspection of cabin crewrecords of the scheduled airlines. During April,2003 to 31 March 2004, 59 in-flight cabininspections were carried out. The deficienciesobserved were followed up with the respectiveairlines for removal/ corrective action.Flight operations inspections including inspectionsof the establishments and base stations werecarried out by DGCA officers by checking theadequacy of records maintained and efficacy ofmonitoring system.During the period April, 2003 to 31 March 2004,29 aerodrome inspections were carried out indifferent regions.MINISTRY OF CIVIL AVIATION

3.13 RESEARCH & DEVELOPMENT• Type CertificationR&D Directorate is very actively involved withthe type certification of 12- seater civil version ofthe Advance Light Helicopter (ALH), Dhruv,which is being designed and developed by HAL,Bangalore. The type and technical certificateshave been issued to HAL.R&D Directorate is extensively involved in workrelating to the type certification of ‘SARAS’aircraft being designed and developed by M/s.National Aerospace Laboratories, Bangalore. Thestructural assembly of SARAS has been completedand the assembling of various systems is underprogress. The aircraft will soon be ready for firstflight.• Type ApprovalR&D Directorate has been very actively involvedin coordinating the design, development and typetesting of a large number of airborne equipmentundertaken by HAL, Lucknow.• Training of OfficersAn expert from Joint Aviation Authority ofEuropean Union is positioned at DGCA Hqrs.The officers of R& D Directorate have a closeinteraction with him on various matters relatingto the certification aspects of the aircraft.• Laboratory ActivitiesMore than 178 samples of aviation fuel andlubricants were tested for the purpose of monitoringquality control.About 1570 CVR cassettes and 467 FDR readoutsdrawn from various aircraft for monitoringcrew performance and recording integrity ofrecorders were analysed and corrective actionrecommended.ANNUAL REPORT 2003-2004Assistance was provided by the R&D Directoratein the laboratory investigations of failed componentsof aircraft involved in accidents/incidents.Investigation of 14 such cases were carried out.About 150 welded specimens were tested forissuance of welder competency certificate and 42new indigenously developed specimens wereapproved.Design organisation approval has been granted toTransport Aircraft Research & DevelopmentCentre, HAL, Kanpur to carry out modificationson civil aircraft.Two sessions of Indo-Russia working group oncivil aviation were held for ImplementationProcedures of Airworthiness (IPA) for mutualacceptance of civil aeronautical products.3.14 ADMINISTRATION• Implementation of official languagepolicyAll the general orders, establishment orders andnotifications were issued bilingually in the officeof the Director General of Civil Aviation. AirAccident Report, Statistical Report and AnnualReport were brought out in bilingual form.During the year, 20 employees were impartedtraining in Hindi workshop. Various experts fromother offices were invited to deliver lectures in thisworkshop. According to the instructions ofofficial language department, some cassettes anddocumentary films regarding progressive use ofofficial language were screened in this workshop.Two employees each were trained on Hindi typingand stenography under the Hindi TeachingScheme. In order to promote Hindi work oncomputers ‘Leap Office’ Hindi software was madeavailable to all the sub-ordinate offices.Various Hindi competitions were also conducted27

and Hindi Day was celebrated enthusiastically.The Director General gave commendation certificatesand cash awards to the winners. Eightofficials were given cash awards for doing theirmaximum work in Hindi under the incentivescheme of official language department for doingoriginal noting/drafting in Hindi. One officerwas given cash award for giving maximumdictation in Hindi. Four typists got incentiveallowance for doing Hindi typing along withEnglish.Hindi magazines were purchased from libraryfund to ensure implementation of Official LanguagePolicy.Meetings of official language implementationcommittee were conducted regularly in everyquarter. Subordinate offices were also inspected.• Vigilance MattersShri P.K. Chattopadhyay, the Deputy DirectorGeneral is functioning as Vigilance Officer forDGCA office. A committee headed by the JointDirector General has also been constituted whichmeets on every second Wednesday of the monthfor looking into public grievances. Large-sizepainted boards have been displayed at all prominentplaces showing the name, official andresidential address and phone number of the ChiefVigilance Officer and Vigilance Officer. Otherinstructions on vigilance matters, as and whenreceived from the Ministries/Central VigilanceCommission are scrupulously followed andcirculated.Out of the 12 disciplinary cases pending at thebeginning of the year, 4 cases have been disposedoff. No new case has been initiated during theyear.• Audit ParasDuring the year 2003-04, 43 audit paras werereceived, of which 14 have been settled. Out of 73outstanding paras of the previous years, 20 parashave been settled. Efforts are on to settle theremaining paras.****28MINISTRY OF CIVIL AVIATION

Bureau of Civil AviationSecurity44.1 The Bureau of Civil Aviation Security(BCAS) is an attached office of the Ministry ofCivil Aviation. The Bureau is responsible forlaying down the standards of pre-embarkationsecurity and anti-sabotage measures in respect ofcivil flights and ensuring their compliancethrough regular inspections and security audits.4.2 BCAS has its headquarters in New Delhi. Itis headed by an IPS officer of the rank of DirectorGeneral of Police, designated as Commissioner ofSecurity Civil Aviation (COSCA), who is also thedesignated “Appropriate National Authority” toensure formulation, updation and implementationof National Aviation Security Programme for thecountry and fulfill all international obligations inthis context.4.3 The Bureau is the singular regulatoryauthority for discharging all relevant national andinternational obligations in respect of training thepersonnel in aviation security responsibilities,testing and certification of X-ray screeners etc.The core responsibilities of the Bureau include,inter alia, planning and coordination of all aviationsecurity related activities, operational emergenciesand crisis management. It has four regional officesat Delhi, Kolkata, Mumbai and Chennai, eachunder a Deputy Commissioner of Security (CivilAviation) for regulating, monitoring and conductingregular security inspections and audits of theairports in the Northern, Eastern, Western andSouthern region, respectively.4.4 The Bureau has four Bomb Detection andDisposal Squads (BDDS) positioned at internationalairports of Delhi, Mumbai, Kolkata andChennai with latest sophisticated equipments likerobot, Real Time Viewing System (RTVS), electronicstethoscope, explosive detector etc. Thesesquads have rendered safe some of the sophisticatedImprovised Explosive Devices (IEDs) andassisted local police in explosive investigations.4.5 BROAD TARGETS SET BYBUREAU• Modernisation: - (i) Adopting IT andelectronics equipment & systems and (ii)redesigning and updation of BCASwebsite.• Training: To ensure well trained andmotivated security personnel and otheremployees of the airlines, cargo andairport operators and peripheral serviceproviders and also to upgrade the skillsof the BCAS trainers and officers.• R&D Database development: Develop-29ANNUAL REPORT 2003-2004

30ment of a reliable database for datamining Electronic Data Processing(EDP) and R&D purposes.• Initiatives to improve airport security:Recommending various securityprocedures, technology upgradation andmodernisation of security relatedequipments and schemes.• Maintenance and Operation of BombDetection & Disposal and Dog Squads:Tackling bomb threats and anti-sabotagerequirements at the four metro internationalairports and potentially sensitiveairports.• Bureau also has mandatory targets forprogressive use of official language,dealing with staff grievances, pollutioncontrol, women’s welfare activities,ensuring prescribed quota representationof SC/STs & OBCs etc.4.6 ACHIEVEMENTS AGAINSTTARGETSA. ModernisationBCAS has formulated an IT Plan for modernisationand automation of office procedures. Computerisationwork is in progress in the BCAS. All thestaff members have been trained for basic operation.All documentation both in Hindi andEnglish is being done on computer, leading to thedevelopment and administration of databases andelectronic data processing. All computers areinternally networked in local area network.Financial software package has been obtainedfrom the NIC and official human resource managementsoftware package is also beinginstalled.B. Training• The Bureau has developed and implementeda National Training Programmethrough establishment of an AviationSecurity Training Centre located at NewDelhi, which is utilised for the trainingof aviation security staff and otheremployees of airlines and air operators/executives staff of Airports Authority ofIndia. The training centre has upgradedthe training aids with addition of X-rayBureau of Indian Standars(BIS) fortesting of screeners and other audiovisualaids such as multimedia projector,visualiser, laptop computer etc.• During the year 2003, 49 trainingcourses have been conducted and 2139security personnel have been trained inaviation security. In addition to theabove, AVSEC awareness trainings wereconducted at different airports in thecountry. In all, 45 such programmeswere attended by 1715 employeesworking at airports.• The officers of the BDDS have alsotrained 2812 staff of the airport inrecognition of IEDs and bomb threatprocedures.• BCAS has introduced testing and certificationof screeners working at airportsand large number of screeners have beentested and certified for screening.• Two Deputy Commissioners of Security(CA) attended the “Aviation SecurityInstructors Course” and two AssistantCommissioners of Security (CA) attendedCourse on ‘Crisis Management’in December 2003, organised by ICAOat Regional Training Center, Penang,Malaysia.MINISTRY OF CIVIL AVIATION

C. R &D Database For AVSECAll officers of BCAS are feeding details of inspectionreports, follow-up action, feedback reports,security audit reports, detailed documentation ofincident investigations etc. on the server throughnetworked desk station.D. Initiatives Taken to Improve Security atAirports• Passenger Touch Free Pre-EmbarkationSecurity Checks:To make the pre-embarkation checks morepassenger friendly and to provide hassle freesecurity checks to the passenger, the Door FramedMetal Detectors (DFMDs) have been realigned.More emphasis is now being laid on use of HandHeld Metal Detector (HHMD) and DFMD.• Security Programme Of Scheduled/NonScheduled Air CarriersTo ensure the prescribed security standards, thesecurity programmes of the airlines (both scheduledand non-scheduled carriers) are scrutinisedand vetted by the Bureau. So far, security programmesof 50 foreign airlines and 104 domesticoperations of scheduled and non-scheduled airlineswere approved for operations.• Biometrics Based Smart Card Systemfor Airport Access ControlBCAS has prepared a detailed study report andproposal for introduction of smart card andbiometrics based access control and databasemanagement system at IGI airport.• Contingency PlanThe Bureau has a contingency plan to deal withemergencies arising out of hijacking and otherthreats to civil aviation. Keeping in view thechanging AVSEC scenario, the contingency plan isbeing suitably amended.E. Achievements of BDDS• There has been no cancellation of flightdue to bomb threat calls for the past fouryears (i.e. since the year 1999) and delayin clearance of flight too has beenreduced to about 2 hours compared to6 hours in the past in case of specificbomb threat calls.• As a part of technology up-gradation,BCAS has procured real time X-raysystem, electronic stethoscope and hook& line sets. 5 bomb suits have beenprocured. These will be used at all thefour international airports.4.7 IMPLEMENTATION OF OFFICIALLANGUAGEDuring the year, “Hindi Week” was celebratedfrom 15 th Sept. to 19 th Sept. 2003, during whichextempore speech competition, typing, dictation,essay, noting & drafting and quiz competitionswere organised and winners given cash prizes. AHindi workshop for the officers and staff was alsoorganised. Inspections were carried out in all thefour regional offices, to ensure the progressives useof Hindi in the regional offices of the Bureau. InJanuary, 2003, the Committee of Parliament onOfficial Language also inspected the regionaloffice, Kolkata and the assurances given to theCommittee have been fulfilled within the stipulatedtime.4.8 STAFF GRIEVANCES CELLIn pursuance of Government instructions, a staffgrievances cell operates in the Bureau with theAdditional Commissioner of Security (CivilAviation) as Staff Grievances Officer, to promptly31ANNUAL REPORT 2003-2004

deal with the grievances of officers/staff workingin the Bureau and its four regional offices.4.9 POLLUTION CONTROL FORHEALTHY ENVIORNMENTPollution test for all vehicles is ensured and thepollution check certificate to this effect is pastedvisibly on the wind screens of all BCAS vehicles.It is ensured that all new vehicles are “Bharat-II”certified. All newly constructed office buildingsof the Regional Offices at Delhi, Chennai andKolkata ensure clean and green working environmentthrough employees’ own initiatives andcontribution to the efforts towards a pollution freeatmosphere.4.10 WELFARE ACTIVITIESA small library facility and reading room has beenmade available to the employees to keep abreastof the current affairs. From time-to-time informalgatherings are arranged so that the work relationshipsremain amicable.****32MINISTRY OF CIVIL AVIATION

Commission of RailwaySafety55.1 INTRODUCTIONThe Commission of Railway Safety deals withmatters pertaining to safety in rail travel andoperation. For this purpose, the Commissionperforms certain statutory functions laid downin the Railway Act and the rules framed thereunder.Formerly called the Railway Inspectorate, itfunctioned under the control of the Railway Boardtill May, 1941 when it was separated from itscontrol to secure its independence from theauthority administering the Railways, pursuant tothe recommendations of a Committee called the‘Pacific Locomotive Committee’ which wasendorsed by the Central Legislature. After itsseparation, it was attached to the air wingand placed under Department of Communications.It came under the administrativecontrol of the Ministry of Tourism & CivilAviation in May, 1967, and subsequently whenthat Ministry was bifurcated, under the Ministryof Civil Aviation.While, the Railway Board in the Ministry ofRailways, are the safety controlling authority andare responsible for laying down and enforcingsafety standards for the Indian Railways, the maintask of the Commission is to direct, advise andcaution the railway executives through itsANNUAL REPORT 2003-2004regulation, inspection, audit, investigatory andadvisory functions and thereby assist them inensuring that all stipulated measures are taken inregard to the soundness of rail construction andsafety in train operation.5.2 ORGANISATIONThe Commission is headed by the ChiefCommissioner of Railway Safety, who is also theprincipal technical adviser to the Government ofIndia in all matters concerning the Commission.The headquarters of the commission is located atLucknow. The Chief Commissioner directs thetechnical activities of the Commission and issuesinstructions for the guidance of Commissionersof Railway Safety in respect of holdingstatutory inquiries into serious railway accidents,inspection of new lines including electrificationof existing lines prior to their opening for publiccarriage of passengers and sanction for running ofnew locomotives/rolling stock. He also coordinatesthe work of the commissioners in theirdealings with the Railway Board and the railwayadministration. He communicates his viewswhenever necessary to the Ministry of Railways(Railway Board) on design, standards,specifications and procedures for construction,33

34working and maintenance of assets in all branchesof railway engineering and operation includingcivil, mechanical electrical and signal engineering,etc. The Chief Commissioner is assisted by aDeputy Commissioner of Railway Safety (general).There is a technical wing attached to the ChiefCommissioner at his headquarters which has fourDeputy commissioners of Railway Safety drawnfrom the mechanical, electrical, signalling,telecommunication and operating disciplines ofIndian Railways.The Commission has 9 circle offices – two withheadquarters at Mumbai, three with headquartersat Kolkata, and one each with headquartersat Bangalore, New Delhi, Lucknow andSecunderabad. Each circle office is under thecharge of a Commissioner. There are two DeputyCommissioners of Railway Safety (Signallingand Telecommunication) headquartered atMumbai and Kolkata. Each Commissioner is anindependent statutory authority under the RailwayAct, 1989.5.3 MAIN FUNCTIONSThe duties and functions of the Commissionersare laid down in the Railways Act, 1989and rules framed thereunder, and executiveinstructions issued from time to time. These arebriefly :• to conduct statutory inquiries intoserious railway accidents and suggestsafeguards.• to inspect new railway lines with a viewto determining whether they are fit to beopened for the public carriage of passenger,and to sanction their opening afterinspection on behalf of the CentralGovernment.• to sanction the execution of all newworks and installations on the runningtrack affecting the safety of the travellingpublic such as rebuilding ofbridges, remodeling of station yards,line capacity works, resignallingworks, etc.• to make periodical inspections ofrailways and report to the CentralGovernment on any condition whichmay endanger the safety of the travellingpublic and make recommendations.• to examine the technical aspects ofnew rolling stock and advise on theirintroductions on open lines and tosanction their running on other sectionsand increase in speeds.• to authorise the carriage of oversizedconsignments stipulating the conditionsfor their movements.• to recommend and sanction infringementsto the schedule of dimensionsprescribed by the Government of India.• to grant dispensation from generalrules under approved special instructionssubject to stipulated safeguards.• to oversee the accident preventionefficacy of the zonal railway administrationsby reviewing the reports ofdepartmental enquiries into lessserious accidents.The Chief Commissioner submits an annualreport on the working of the Commission which islaid on the table of both the Houses of Parliament.5.4 MAIN ACTIVITIESThe main activities of the Commission of RailwaySafety during the years 2002-03 and 2003-04are as under:-MINISTRY OF CIVIL AVIATION

S.No. MAIN ACTIVITIES 2002-03 2003-041. Statutory inquiries held into serious railway accidents. 35 342. Lines inspected and authorised (in kms.)(i) New lines 186.421 130.228(ii) Double lines 99.261 186.163(iii) Section electrified 482.230 1168.900(iv) Conversion of guage 190.550 1097.9153. No. of applications for new major works sanctioned 3292 31074. Periodic inspection conducted (in kms) 18059.601 20073.6285. New types of locomotives/ rolling stock recommendedfor placement and sanctioned for extended runs. 114 986. Application for condonation of infringements dealt with 19 287. No. of over dimentioned consignments authorised for movement 40 155.5 PROGRESS IN USE OF HINDIAll the circle offices of the Commission observedthe 15 th September, 2003 as Hindi Day andRajbhasha Medals, Suruchi Medals and cashawards for various Hindi competitions viz. essay,typing debate etc., were distributed in the function.The officers of technical wing were presentedwith the cash award of Rs.1000/- each forproducing technical circulars in Hindi.The Commission also publishes a quarterlynewsletter. Its editorial team also received theletter of praise for its complete Hindi version.5.6 POLLUTION CONTROLAll possible steps are being taken to controlpollution in the offices of Commission of RailwaySafety. The office premises are kept always neatand tidy. Smoking is strictly prohibited in theoffice premises. The vehicles used by the officersand staff are free from pollution.5.7 HALF YEARLY JOURNALThe Commission has started publishing halfyearlyjournals of accidents inquiry reports afterreceiving the comments of Railway Ministry inabstract form as proposed by CCRS.****35ANNUAL REPORT 2003-2004

Indira Gandhi RashtriyaUran Akademi6366.1 INTRODUCTIONIndira Gandhi Rashtriya Uran Akademi was setup to bring about a quantum improvement in thestandards of flying and ground training of commercialpilots in the country. The Akademi isequipped with the most modern and sophisticatedtrainer aircraft, up-to-date audiovisual trainingaids and other facilities for effective groundtraining. It also has highly qualified flying andground instructors, with long experience in thefield of aviation and flying training. The aim is toreduce the workload of pilot to make him aneffective systems manager. The graduate of theAkademi reach the standards required to transitwith ease on the cockpits of the airlines.The Akademi has excellent infrastructure with afully furnished hostel (72 rooms) for the pilottrainees and staff quarters (88 Qrts.) inside theinstitutional area. In the operational area it has itsown runway, ATC and two hangars and complimentof operational & maintenance staff. It is apremier institution of the country in the field offlying training.6.2 OBJECTIVESThe objective of the Akademi is to conduct airlineoriented flying training courses to the level ofcontemporary international standards. Thecourses offered are:• CPL training course fixed wing aircraft,i.e. TB-20 and King Air C90-Aalongwith B.Sc. (Aviation) degreecourse.• Ab-Initio to CPL Course alongwith BSc.(Aviation) degree course.• Multi Engine Endorsement Course• Instrument Rating Course• Simulator Training Course• Standardisation Course for Chief FlyingInstructor and Pilot Instructor In chargeof Flying Clubs.• Ground Training Course for AssistantPilot Instructor (A) of Flight InstructorRating (A)• Skill Tests for renewal of Licence for Exstudentsof IGRUA on requirementbasis.• To provide simulator and other facilitiesto outside aviation agencies for Pilotsselection and interview.• Practical Training to Diploma Holders inAeronautical Engineering.Of the above, first two courses are conducted onregular basis and the others on request.MINISTRY OF CIVIL AVIATION

6.3 ORGANISATIONThe Akademi is an autonomous body under thecontrol of the Ministry of Civil Aviation. TheGoverning Council is the supreme body of theorganisation and the Secretary, Ministry of CivilAviation is its Chairman.The Akademi is headed by a Director who isassisted by Departmental Heads, such as, ChiefFlying Instructor, Chief Ground Instructor, ChiefEngineer and Chief Administrative Officer.6.4 TRAINING• Commercial Pilot’s Licence (CPL)Course: This is the main activity of theAkademi. This course is offered to pilotsholding Private Pilot’s Licence. Trainingfor Commercial Pilots Licence withmultiengine endorsement and instrumentrating is imparted to the traineesalong with training on Simulator.• From October 2003, the Akademi hasalso started ab-initio to CPL Course.6.5 GROUND TRAININGThe details of the Ground Training are as follows:• Basic TrainingOn arrival at the Akademi, the students undergoground training in basic aviation science subjectsand also specific to TB-20 aircraft. Flying trainingcommences after about 20-24 weeks. GroundTraining in Aviation subjects comprises of 590/800 hours (depending upon the course) of lectures.It sets a sound foundation for Line OrientedFlying Training (LOFT) and prepares thepilots for adoption of fast developing needs ofaviation industry.ANNUAL REPORT 2003-2004• Audio Visual AidsTo impart ground training effectively, theAkademi has modern audio-visual aids including alarge number of video training films and slides,cut-ways, working and schematic model of variousaircraft components and systems, radio telephonyand morse code training lab, a wind tunnel,Computer Based Training (CBT) system and PilotAptitude Test trainer.• Flying TrainingPre-flight Preparation :- Flying training is carriedout by experienced flying instructors. Groupbriefing on important exercises is carried out overand above thorough personal briefing and debriefingprior to and after each flight.• AircraftThe Akademi has 13 Trinidad TB-20 aircraft.Basic flying training is imparted on this aircraft,which is a piston single engine aircraft withvariable pitch propeller, retractable undercarriageand is equipped with modern Nav Aids. Theaircraft is ideal for Line Oriented Flying Training(LOFT) and instrument flying training.The Akademi has two King Air C-90A aircraft.The final stage of training is carried out on thisaircraft. This is a twin-engine turbo prop aircraftwith pressurized cabin. The aircraft is equippedwith modern and sophisticated radio navigationalaids. Particular attention is paid to Line OrientedFlying Training. The students graduate withmulti-engine endorsement and instrument rating.• Flying Training SyllabiThe trainees fly a total of 170/230 hours on theTB-20 aircraft and 20 hours on the TB-20cockpit procedure trainer. Of these 170/230hours, the trainees do 50/70 hours dual and 120/37

38180 hours solo. In the next stage the traineesafter 20 hours on King Air C-90A simulator, fly20 hours on the aircraft. The trainees are given aCPL endorsement and instrument rating on boththese aircraft. The endorsement on the lateraircraft puts the IGRUA trainees at a distinctadvantage to other trainees including thosehaving trained abroad.6.6 SIMULATOR TRAININGThe Akademi has a modern upgraded King Air C-90A simulator with visual system for givingintensive training to pilots in normal and emergencyprocedures and for instrument flyingexercises. Two single engine TB-20 Flight Simulatorsand two touch panel trainers, one for KingAir C-90A aircraft and one for Boeing-737aircraft are also in operation. Over and abovethis, one HPT, which is a glass cockpit proceduraltrainer, is programmed to fly eight different typesof aircraft and is available with visual systems.6.7 COMMERCIAL HELICOPTERPILOTS LICENCE (CHPL)COURSEThis course was offered to pilots holding CPL andmost of the helicopter pilots trained by thisAkademi were absorbed by M/s Pawan HansHelicopters Ltd. (PHHL) and Aviation ResearchCenter (ARC). However, there has been nodemand for training on helicopters since March1992. The Akademi has two Robinson R-22 BetaHelicopter, which are likely to be disposed off.6.8 MAIN ACHIEVEMENTSThe details of pilot’s trained/under training in theAkademi during the last 7 years are as follows:Total No. of TraineesCompleted UnderTraining TrngFixed Wing 117 66(CPL/IR/ME)Multi-engine 52 02endorsementTOTAL 169 68Flying training of 20 th , 21 st & 22 nd CPL and 1 stIAF/FE CPL courses are in progress.• Number of Hours Flown during theFinancial Year 2002-2003Type of aircraftHrs. flownTrinidad TB-20 2703.55King Air C-90A 634.00TOTAL 3337.55The standard achieved by the students duringtheir training at the Akademi are comparable tointernational standards. The performance of thegraduates of the Akademi, who have joined AirIndia, Indian Airlines and other private airlineshas been appreciated by their respective employers.6.9 POLLUTION CONTROLMaintenance of aircraft and its equipments/sparesis being done in the Akademi, which does notinvolve any production/manufacture. However,the following steps are taken in the Akademi forpollution control:• Control of Ambient Air Pollution(i) Vehicle engines are properly maintainedwithin the prescribed limits.(ii) Solid waste is burnt in a manner as tocause minimum fumes.(iii) Forestation is actively pursued to maintaina green environment in the AkademiMINISTRY OF CIVIL AVIATION

• Waste Water DisposalThe Akademi has proper underground drainageand an efficient sewerage plant to ensure that thewater sources are not polluted in any manner.6.10 IMPLEMENTATION OFOFFICIAL LANGUAGEThe Akademi continues to take necessary steps forensuring the implementation of all provisions ofthe Official Language Act and Rules. Employeesare given training in Hindi, Devanagari typingetc. Incentives are given to employees for successfullyqualifying Devanagari typing test. Computershave been modified with software for use inHindi and are in operation. Efforts are beingmade to implement Hindi as medium of instruction.*****39ANNUAL REPORT 2003-2004

Airports Authority ofIndia77.1 INTRODUCTIONThe Airports Authority of India (AAI) completednine years of successful operation on 31 st March,2004. The Authority recorded all-round progressin its activities. The highlights of the performanceduring the period April 2003 to March, 2004 aregiven below:• AAI paid a record dividend of Rs.62crores to the Government for the year2002-2003.• A new modern terminal building capableof handling 400 passengers at a time hasbeen commissioned at Bhuj in Gujarat ata cost of Rs.19.51 crores.• AAI signed a Memorandum of Understandingwith the Government ofGujarat for the take-over and developmentof Surat airport for operation ofATR-72 type of aircraft at an estimatedcost of Rs.35.30 crores.• The NSCBI Airport, Kolkata, SardarVallabhbhai Patel Airport, Ahmedabadand Coimbatore Airport received theCertificate of Approval under ISO 9001.• The Airports Authority of India(Amendment) Act, 2003 was passed byboth Houses of Parliament.• Reduced Vertical Separation Minima(RVSM) was introduced in November2003.7.2 ORGANISATIONThe composition of the Board of AAI as on31.3.2004 is given below:1. Shri K. Ramalingam - Chairman402. Shri Satendra Singh - DGCA & Ex-Officio Member3. Shri V. Subramanian - Additional Secretary & Financial Advisor,Ministry of Civil Aviation4. Dr. S.N.A. Zaidi - Joint Secretary, Ministry of Civil Aviation5. Shri T.K. Mitra - Commissioner of Security (Civil Aviation)Bureau of Civil Aviation Security6. Shri Sunil Arora -- Chairman & Managing Director, Indian AirlinesLimited7. Shri V.D.V. Prasad Rao - Member (Finance), AAIMINISTRY OF CIVIL AVIATION

7.3 FINANCIAL PERFORMANCE• The operating results for the year 2002-03 and the revised estimates for the year 2003-04 are as follow :(Rupees in crores)Particulars 2002-03(Actual) 2003-04(RE) (Provisional)a. Revenue 2384.49 2462.67b. Expenditure 1887.44 1947.18c. Profit before tax 497.05 515.49d. Profit after tax 282.05 293.83• Financial Highlights(Rupees in crores)Particulars 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04(Provisional)a. Revenue 1279.64 1591.27 1691.28 1873.44 2244.84 2384.492 462.67b. Expenditure 963.45 1255.49 1346.55 1514.36 1767.86 1887.44 1947.18c. Profit before tax 316.19 335.78 344.73 359.08 476.98 497.05 515.49d. Provision for tax 120.05 127.37 133.35 145.00 210.00 215.00 221.66e. Profit after tax 196.14 208.41 211.38 214.08 266.98 282.05 293.83• Capital Structure of AAI as on 01.04.2003 and 01.04.2004(Rupees in crores)Particulars 01.04.2003 01.04.2004(provisional)Government capital 405.59 416.63Reserves & surplus 2317.07 2537.85Long term loans 225.73 203.64Net worth 2370.93 2602.47Capital employed 2534.68 2725.82* The capital outlay for the year 2004-2005 (BE) is Rs. 795 Crores.• Capital Structure(Rupees in crores)Particulars 1.4.98 1.4.99 1.4.2000 1.4.2001 1.4.2002 1.4.2003 1.4.2004Government capital 325.13 337.63 350.13 365.09 388.79 405.59 416.63Reserves & surplus 1104.61 1273.53 1534.73 1715.58 2023.49 2317.07 2537.85Long term loans 442.06 466.06 445.82 394.77 315.81 225.73 203.64Net worth 1224.45 1417.23 1691.15 1880.32 2142.01 2370.93 2602.47Capital employed 1148.85 1437.03 1852.45 2047.89 2396.59 2534.68 2725.82Working capital 147.92 261.45 404.59 492.50 741.62 820.52 870.0041ANNUAL REPORT 2003-2004

• Contribution to Exchequer(Rupees in crores)Particulars 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04Income tax** 126.30 149.43 158.20 184.35 206.29 255.65 290.00Dividend*** 39.23 41.68 42.28 50.00 55.00 62.00 $ 65.00Tax on dividend 3.92 4.17 9.30 5.10 0.00 7.94 8.33Interest payments 6.07 6.41 7.83 5.93 2.42 2.83 1.90on loan portion ofbudgetary supportGuarantee fees 2.98 3.18 2.96 2.74 2.55 2.18 1.70Interest on loan portion of 11.70 12.40 11.27 10.08 14.13 2.14 0.00commencing capitalTotal 190.20 217.27 231.84 258.20 280.39 332.74 366.93** This represents Advance Tax & TDS.*** Dividend shown for the year 2002-03 has been paid in 2003-04.$ Final dividend will be decided by the Board.• Capital Expenditure in 2003-04The Government of India had approved anAnnual Plan outlay (BE) of Rs.800.00 crores forAAI for the year 2003-04. The same was revisedto Rs.685.00 crores in RE 2003-04. The actualexpenditure incurred by AAI during 2003-04on provisional basis is Rs.566.22 crores. Thediscipline-wise details of the capital expenditureand the source of funding thereof are givenbelow:42(Rs. in crores)PARTICULARS BE 2003-04 RE 2003-04 Expenditureupto 31 stMarch, 2004A. NATIONAL AIRPORTS DIVISIONAerodrome works 284.62 268.67 248.60Aeronautical communication services 143.00 152.00 139.58Ground and safety services 122.70 77.36 55.02MATS-BD 1.36 5.00 0.00Modernisation of CATC 1.00 0.97 0.67TOTAL 552.68 504.00 443.87B. INTERNATIONAL AIRPORTS DIVISIONNITC (Phase-II) Chennai & Mumbai 9. 14 8.00 8.50New projects 2.80 0.33 0.73Acquisition and development of land 0.05 4.76 1.33Improvement of existing facilities 145.11 99.21 89.83Facilitation and operational eqpts. 90.22 68.70 21.96TOTAL 247.32 181.00 122.35GRAND TOTAL (NAD + IAD) 800.00 685.00 566.22MINISTRY OF CIVIL AVIATION

PARTICULARS BE 2003-04 RE 2003-04 Expenditureupto 31 stMarch, 2004C) SOURCE OF FUNDSI Net internal resources & change inworking capital ( To the extent utilizedfor capital expenditure) 735.59 595.25 516.14II Budgetary Support for NER projectsand other remote area 34.96 22.08 22.08III NEC grant 17.45 16.39 4.50IV Schemes funded by A.P. Govt. for Vizag 0.00 8.50 8.50V Schemes funded by Ministry ofDefence for Vizag 0.00 39.00 15.00VI Foreign loans drawal & capital grants 0.00 0.00 0.00VII Grant from DONER for NER Projects 8.00 0.00 0.00VIII Grant from HP Govt. for projects atGaggal and Kullu 4.00 3.78 0.00TOTAL FUNDS 800.00 685.00 566.227.4 TRAFFICTraffic handled during the year 2003-04 was:Particulars 2002-03 2003-04 % ChangeAircraft movements (in nos.)International airports 132790 116442 14.0Domestic airports 504157 444208 13.5Total 636947 560650 13.6Passengers (in nos.)International airports 16650117 14825799 12.3Domestic airports 32041213 28897525 10.9Total 48691330 43723324 11.4Cargo (in tonnes)International airports 693362 646137 7.3Domestic airports 375080 333222 12.6Total 1068442 979359 9.17.5 MAJOR WORKS COMPLETED(A) CNS / ATM facilities• Replacement of Instrument LandingSystem at Agartala, Patna, Ranchi,Vadodra, Trichy, Varanasi and Jammuairports.ANNUAL REPORT 2003-2004• Provision of Flight Information DisplaySystem at Agartala, Coimbatore, Pune,Hyderabad, Trichy, Ahmedabad (2),Bhopal, Indore, Goa and Nagpur airports.43

44• Provision of Surveillance Close CircuitTelevision (CCTV) at Ahmedabad,Amritsar, Goa and Srinagar airports.• Replacement of Automatic MessageSwitching System (AMSS) atAhmedabad airport.• Replacement of Marker Beacon atChennai, Jaipur, Kolkata and Nagpurairports.• Installation of Doppler Very-high OmniRange (DVOR) at Cochin and Gulbargaairports.• Installation of DVOR (replacement) atMadurai, Udaipur, Vadodra,Kanchipuram, Chennai, Mangalore andJodhpur.• Commissioning of DVOR (new facility)at Leh.• Installation of AMSS at Cochin airport.• Installation and commissioning ofDistance Measuring Equipment (DME)(replacement) at Jaipur, Leh, Lucknowand Patna airports.• Commissioning of Non-DirectionalBeacon (NDB) at Kadmath, Androthand Kalpeni airports at LakshadweepIslands.• Commissioning of Monopulse SecondarySurveillance Radar System (MSSR)at Varanasi and Mangalore airports.• Upgradation of FDPS at Kolkata andChennai airports.• Installation of FDPS at Trivandrum,Ahmedabad, Nagpur and Varanasiairports.• Installation and commissioning ofautomatic flight inspection system inAAI calibration unit.• Installation of radar simulator at CivilAviation Training Centre (CATC)Allahabad.• Procurement of 300 nos. of Very HighFrequency (VHF) transmitters andreceivers with VDL capability for variousairports for air to ground communication.• Procurement of 45 sets of VHF FrequencyModulation (FM) handheldwalkie talkie sets for CISF personnel atvarious airports.• Procurement of 383 nos of VHF FM setsfor various airports.• Procurement of 30 nos of Ultra HighFrequency (UHF) link equipment forvarious airports.• Installation of High Frequency (HF)transmitters (replacement) at Chennai,Trivandrum and Delhi airports forproviding air to ground HF communication.• Procurement of 48 nos. of non-directionalbeacon for replacement of existingequipment at various airports.(B) Aerodrome Works• Three additional security booths withexclusive gate commissioned at IGIAirport.• As part of synergised action under theongoing ‘Airport Improvement Initiative’,two aquariums were installed atdomestic terminal for improving theambience at IGI airport.• Replacement of false ceiling in securityhold No.3 of the international passengerterminal at IGI airport.• New state-of-the-art courier terminalcommissioned and all courier bagoperations shifted from the passengerterminal at IGI airport.• At Indira Gandhi International Airport,Delhi in a coordinated action, one acreMINISTRY OF CIVIL AVIATION

Entry to domestic departure, Mumbaiof prime land at Nangal Dairy area(opposite AAI residential colony,Mahipalpur) was retrieved after demolitionof one factory and six shops. Thechimney of another unit near the newCustoms House was also demolished andthe land and the main structure weretaken over by AAI. CISF personnel havesince been deployed to guard this area.• All unauthorised encroachments on theapproach road, both on exit roads as wellas at Cargo Import Warehouse have beenremoved at CSI Airport, Mumbai.• Recarpeting of runway 09-27 was carriedout in close coordination minimisinghardships to the pilots as well as airlinesat CSI Airport, Mumbai.• Four lowering type apron lighting towersinstalled to illuminate rear bays from bayno.34 to 40A of Apron 1B were commissionedat Chhatrapati Shivaji InternationalAirport, Mumbai.• A mass removal / demolition was arrangedand all the hutments numberingabout 300 have since been removed atCSI Airport, Mumbai.• Lounge for non-scheduled / privateANNUAL REPORT 2003-2004operators run by M/s Taj Air was commissionednear gate No.8 on 3.6.2003 atChhatrapati Shivaji International Airport,Mumbai.• Two X-ray machines were installed atexport general cargo shed at CSI airport,Mumbai.• New international departure terminalwas commissioned at Chennai airport.• Recarpeting of runway 07-25 was carriedout in close coordination minimisinghardships to the pilots as well as airlinesat Chennai airport.• Construction of sewerage treatmentplant and connected works completed atChennai airport.• Construction of aerolink and airsidecorridor for Bay No.26, extension andmodification of Anna internationalterminal and construction of atrium atKamraj domestic terminal completed atChennai airport.• Construction of new terminal complexat Bhuj airport.• Construction of new terminal buildingat Jabalpur airport.• New hanger at Kolkata airport wascommissioned.45

46(C)• Construction of fire station, E&Mworkshop, MTD building, work room atSardar Vallabhbhai Patel (SVP) airport,Ahmedabad.• Civil and electrical works for modificationin T.B I/C canopy CCR, MT etc.and related works including engagementof consultant at Bangalore airport.• Construction of terminal building atGaggal (Kangra) airport.• Strengthening and extension of apron,construction of new taxi track andisolation bay at Lucknow airport hasbeen completed.• Installation of Monopulse SecondarySurveillance Radar (MSSR) at Varanasiairport has been commissioned.• Doppler Very High Omni Range(DVOR) was calibrated and put intooperation at Leh airport.• Mangalore airport has been certified toISO-9001:2000 standards in respect ofair traffic services, terminal services,Communication, Navigation and Surveillance(CNS) services with associatedinfrastructure w.e.f. 1.7.2003.• A Memorandum of Understanding(MoU) was signed between Governmentof Gujarat and Airports Authority ofIndia on 30.9.2003 for taking over of theSurat airport in Gujarat by AAI forfurther development and for operation ofAB-320 / B-737 type of aircraft.Passenger Facilities• A “New Airport Initiative” Programmehas been launched at identified 25airports (including 11 internationalairports) in order to give them a faceliftand to improve the standard of facilitiesand passenger amenities that match upto world-class standards. These are CSI-Mumbai, IGI- New Delhi, Goa,Chennai, Hyderabad, NSCBI-Kolkata,Bhubaneshwar, Bangalore, Ahmedabad,Jammu, Trivandrum, Calicut,Guwahati, Agartala, Coimbatore,Amritsar, Varanasi, Lucknow, Patna,Ranchi, Jaipur, Udaipur, Pune andAurangabad airports. AAI has preparedpanels of landscape architects, interiordesigners, traffic consultants etc. for thepurpose at most of these airports.• Touch free security screening of passengersintroduced on trial basis at IGIairport.• Duty free shops for sale of handicraftitems at the international passengerterminal (departure level transit area)have been refurbished. Further, theinternet kiosk at the internationalterminal (visitors block) with facilitiesfor internet browsing and telephony atIGI Airport has also been launched.• Common User Terminal Equipment(CUTE) facility provided in baggageconveyor belt No.4 (out of the total 4belts) with compatible check-in desksand electronic flight detail display systemat the international departure wing atIGI airport.• Length of two conveyor belts increasedin international arrival terminal, thusimproving baggage delivery at IGIairport.• 16 state-of-the-art entertainment / flightinformation display televisions, including6 plasma television sets were installedat the domestic and international terminalsat IGI airport.• Low height glazed partition in lieu ofexisting closed partition segregatingMINISTRY OF CIVIL AVIATION

check in area and security holding areaprovided at the international and domesticterminals at IGI airport.• All six baggage conveyor systems werereplaced in the international arrival wingat IGI airport.• 900 new imported trollies with brakeshave been introduced at Chennai airport.• Aerobridge has been provided at thenewly constructed Bay 26 at Chennaiairport as a passenger facilitation measure.• In order to strengthen the security atinternational and domestic airports, 220X-ray machines have been purchased anddistributed to various airports. These X-ray machines are dual energy and colouredmachines, which enable identificationof organic and inorganic materialsso that persons having explosives can beidentified.• Door frame metal detectors and 1060hand held metal detectors have beenprocured and installed at various airportsin India for screening passengers toensure security.• Cargo operations have been automatedby introduction of computerised integratedcargo management system. Thissystem has been connected with thecustoms.• In accordance with United NationsElectronic Data Interchange for Administration,Commerce and Transport(UN-EDIFACT) policies, AAI hasinstalled EDI System to process InternationalCargo.• In Phase-I of the project, AAI hasestablished connectivity for exchangingEDI messages with customs at allfour metro airports in 2003.ANNUAL REPORT 2003-2004• In Phase-II, AAI has now establishedweb based EDI system to connect allpartners like airlines, bank, cargoagents, exporters, importers etc. Thesystem has been tested at all the fourairports and is now ready for commissioning.• In Phase-III of the project, AAIwould introduce bar code system forautomatic data capturing at all thefour metro airports. Order forhardware has been placed. The targetdate of implementation of bar codesystem at the metro airports is 15 thAugust, 2004.• AAI has invested about Rs.13 croresto implement the EDI project, whichis expected to bring about qualitativechange in the service and reducesprocessing and dwell time of Internationalcargo.• New imported trolleys with brakes havebeen introduced at Mumbai, Delhi,Kolkata airports.• To improve the aesthetics of the airport,150 sets of 3 seater cushioned chairs havebeen provided with beautiful multicoloredupholstery at CSI Airport,Mumbai.• The Automatic Teller Machine (ATM)was commissioned at terminals 1B and2C of CSI airport, Mumbai.• ‘May I Help You’ counter commissionedat departure level, terminal IIA at CSIairport, Mumbai.• One additional arrival conveyor has beenprovided at T-2C at Mumbai airport tofacilitate speedy baggage clearance.• New imported passenger baggage trolleyswith brakes were inducted at IGI / CSI /Chennai / Trivandrum airports.47

(D) Air Traffic Management• Reduced Vertical Separation Minima[RVSM]RVSM has been implemented in Indian FIRsincluding the Oceanic airspace between FL 290and FL410 [both inclusive] with effect from 27 thNovember 2003. Implementation of RVSMensures the availability of more optimum flightlevels to the aircraft transiting through IndianFIRs and also improves airspace capacity.• ICAO Universal Safety AuditProgrammeIn accordance with the ICAO General AssemblyResolution in its 33 rd Assembly Session in 2002 itwas decided to extend the ICAO universal safetyaudit programme to include Annex—11, airtraffic services and Annex—14 , aerodromes.These safety audits to be conducted by the ICAOare scheduled to commence in 2004.These audits are meant to demonstrate safetyoversight capability of Airports Authority ofIndia, the service provider to ensure conformitywith the ICAO Standards and RecommendedPractices [SARPs].International Civil Aviation Organisation throughamendment No.4 to Annex 14 has defined astandard as of 27 th November 2003 that statesshall certify aerodromes used for internationaloperations in accordance with the specificationcontained in Annex-14 as well as other relevantICAO specifications. The ICAO has also recommendedthat states should certify aerodromesopen to public use in accordance with thesespecifications.AAI has taken appropriate initiatives in preparingthe aerodrome manuals in accordance with theguidelines issued by the Cooperative Developmentof Operational Safety and Continuing Airworthiness[COSCAP] under ICAO technical cooperationprogramme.Preliminary audit has been carried out and a detailednon-compliance report has been prepared. Action isbeing taken on various points to meet the ICAOrequirements prior to the ICAO audit.48Air Traffic services, IGI Airport, New Delhi.MINISTRY OF CIVIL AVIATION

In accordance with the ICAO requirements, statesare to establish Safety Management System toensure safety standards. Action is being taken toestablish Safety Management System.• GAGAN ProjectGPS and GEO Augmented Navigation“GAGAN” is an augmentation system to enhancethe accuracy and integrity of GPS signals to meetprecision approach requirements in civil aviationand is being implemented jointly by AAI andISRO in three phases. A technology demonstrationsystem will be implemented in the first phasewhich will be upgraded to a full operationalcapability system in the second and third phase.Most of the ground based elements of “GAGAN”would be outsourced while the navigation payloadwould be fabricated by ISRO and would be put inone of the Indian geo satellites of GSAT series.The footprint of this satellite will cover a vastgeographical area from Africa to Australia andhence would facilitate expansion of the servicearea of “GAGAN” far beyond Indian airspace.When implemented, this would replace most ofthe ground based navigational aids and it wouldbe possible to provide precision approach andlanding guidance to aircraft at airports hithertonot available due to terrain conditions precludingthe provision of Instrumental Landing Systems.(E) Aeronautical Information Service• AIP supplement 001 to 031 published anddisseminated to all concerned.• AIC 001 to 003 received from DGCA hasbeen published and disseminated to allconcerned.• G series NOTAMs in respect of Aerodromes,enroute and general are prepared and beingdisseminated through AFTN from 001/03to 00187/03.ANNUAL REPORT 2003-2004• AIP Amendment 01/2003 consisting of 548pages has been incorporated in the existingAIP –India Vth Edition Volume I and II.(F) No Objection CertificateDuring the year 2003, the following building andmast cases were received and processed for issue ofNOC.BuildingsNew cases received 1250Sites cleared and NOC issued 1250MastNew cases received 11500NOC issued 14750(G) Cartography• By using the survey field data and otherdata, during the year 2003, about 125ICAO and non-ICAO aeronauticalcharts including grid maps, aerodromeobstacle charts, IAL/ILS charts, 30NMcharts, TMA charts, route charts, zoningmaps, rescue and fire fighting maps etc.were produced, amended and updatedfor the use of pilots, airline operators andother aviation agencies for safe andefficient aircraft operations.• During the year 2003, examination andcalculation of a large number of NOCcases [about 17000 cases of mast heightand 1400 cases of building height] wascarried out in cartography unit and wereput up to NOC section for finalisation.• To work towards meeting ICAO requirementsof GNSS and RNAV, Survey andcartography unit has indigenouslyconducted the detailed GPS survey offive major international airports viz.Delhi, Mumbai, Kolkata, Chennai andTrivandrum to achieve co-ordinates inWGS-84 system and had also covered 1149

50other major airports with referencestation in WGS-84 system.• Cartography unit has also worked inclose co-ordination as a team member inimplementation of ILS Category-III (A)at IGI airport, Delhi.• To meet ICAO requirements of mapping,the cartography unit has beenindigenously doing the automation ofmapping process. After computerisingthe aerodrome charts and parking anddocking charts of 15 airports (includinginternational and domestic customairports), it is now heading towards thecomputerisation of “ATS Routes Chart”of the Indian air space covering theFIRs.• Detailed fresh / revision survey of 13airports belonging to AAI, Navy andothers was conducted and related chartwere prepared.• Consultancy services on payment basiswere provided for the survey of proposedheliport site at Amby Valley, Sahara LakeCity near Lonavala for M/s Sahara IndiaCommercial Corporation Ltd. and PortBlair airport.• GPS reference stations were establishedfor 3 airports, normally, Lucknow,Kanpur and Pondicherry to achieve theco-ordinates in WGS-84 system.(H) Developmental activities taken up inthe North-East• Extension of runway from 6000 ft. to7500 ft. completed at Agartala airport.• Construction of boundary wall completedat Lilabari airport.• Commissioning of air operations atShillong airport.• Construction of boundary wall atShillong airport.• There are 24 airports / airfields in theeight states of North East region out ofwhich Airports Authority of Indiamaintains and owns 20 airports. Presently,schedule airlines are operatingtheir services through 11 airports.• Ground lighting facilities are availablefor night operation at Agartala,Guwahati, Jorhat, Tezpur, Dibrugarh,North Lakhimpur, Imphal and Dimapurairports. DGCA has approved nightoperation through Agartala andGuwahati airports only. There is aproposal to install ground lightingfacilities at Silchar also during 10 th FiveYear Plan.• Instrument landing systems are availableat Guwahati, Agartala, Imphal,Dibrugarh and planned at Dimapur,Lilabari and Silchar. The works forinstallation of ILS at Lilabari andDimapur airports are likely to be completedduring 2004-05 and at Silcharduring 2005-06.• All the airports owned by AAI are havingrunway length of 7500 ft. and 9000 ft.,where scheduled airlines are operatingexcept airport at Shillong. The airports atKamalpur and Tezu are suitable foroperation by 50 seater type of aircraft.• During 9 th Five Year Plan, new terminalbuildings were constructed and commissionedat Guwahati (1500 passengers),Dimapur (400 passengers), Imphal (650passengers), Tejpur (400 passengers) andduring 10 th Five Year Plan – Agartala(500 passengers) and Lilabari (400passengers).• Construction of new terminal buildingfor 500 passengers at Dibrugarh airport.MINISTRY OF CIVIL AVIATION

• Extension of runway to 7500 ft. withground lighting and associated facilitiesat Dibrugarh airport.• Extension of runway to 7500 ft. withground lighting and associated facilitiesat Silchar airport.• ExpenditureDuring the 9 th Five Year Plan, AAI spentRs.174.32 crores on the development and improvementof infrastructure facilities at the abovementioned airports. North East Council providedgrant of Rs.72 crores @ 60% of executed cost andMinistry of Civil Aviation provided budgetarysupport @ 40% (Rs.61 crores).During the first year of the 10 th Plan i.e. 2002-03,AAI spent Rs.32.90 crores and Rs.12.44 crorestill December 2003 and likely expenditure during2003-04 is Rs.22.60 crores.During current financial year, North East Councilhas released Rs.4.5 crores as share on developmentof airports in the North-East region.7.6 POLLUTION CONTROLEnvironmental plans for international airports /major domestic airports have been undertaken toimprove the environmental quality in terms offollowing parameters:• Air Quality ManagementIncremental changes to the existing ambient airquality may produce detrimental effects on thehealth of human beings. Air quality assessmenthas been proposed to be carried out at the airportsthrough expert agencies for important parameterse.g. TSPM (Total Suspended Particulate Matter),RSPM (Respiratory Suspended Particulate Matter),NOx (Nitrogen Oxides), CO (Carbon Monoxide),HC (Hydro Carbon).In case the pollution level is beyond the permissiblelimits laid down by Central Pollution Board,Ministry of Environment and Forest, necessarymitigation measures are to be adopted.• Noise ManagementDue to very high level of noise generated byaircraft (departure and landing), other airportoperations, such as aircraft engine testing, use ofauxiliary power units (APU’s) of aircrafts etc. ithas become necessary to assess and monitor theambient noise level at airports. It is proposed toassess and monitor these by engaging experts.• Waste Water ManagementWaste water is generated from the airport activitieseg. aircraft waste, dust and chemicals depositedon land surface, apron, taxiways, runways,terminal buildings and domestic activities, kitchenetc. Major pollutants in respect of water pollutionare biochemical oxygen BOD, COD, pH, TSS, oil/grease, detergents etc. At major airports sewagetreatment plant has been installed to treat thewaste water.• Solid Waste ManagementAt IGI Airport the solid waste is collected at thedesignated dumps and then it is transported tothe corporation dumping ground / land fills. Thissystem is not found satisfactory as day by day thespace for the land fills is falling short. In additionto the above, Airports Authority of India, in thepast has installed incinerators. The solid wastecollected at the airport was segregated and thebio-degradable waste was burnt through theincinerators and non-bio-degradable waste wassent to land-fills.• Rain Water Harvesting ManagementThe area covered under rainwater harvestingschemes at IGI airport is 5.59 sq. km approx.,which includes terminal buildings, cargo complex,51ANNUAL REPORT 2003-2004

52airport residential colony, office buildings etc.where 33 rainwater harvesting structures havebeen constructed. The water level before onset ofmonsoon and after the initial rains was checkedwhich has recorded an increase of 20-25 cm inground water table, which is a good sign ofreplenishment of underground water aquifer. AtChennai similar schemes for rainwater harvestingfor operational area, cargo complex, residentialarea, office complex have been got designed andare under execution. Similar schemes at otherairports are under finalisation, in consultationwith Central Ground Water Board.• Green Belt Development / LandscapingAs one of the important components of EnvironmentManagement Plan (EMP), green beltdevelopment all along the approach roads shallfulfill the following objectives:i) Mitigation of air pollutionii) Noise pollution controliii) Balancing eco-environmentiv) Improving aestheticsv) Optimum use of wasteland and environmentconservationAt IGI airport, mass plantation over an area of120 acres with 50,000 trees of different varietieshas been done. Bougainvillea garden with 13varieties along the approach road, vacant landpockets in between Indian Airlines and cargocomplex have been created to give a green /colourful look. Plumaria garden in the vicinity ofairport in an area of 5 acres has been developedwhich is unique in northern India. Plantation oftrees / shrubs in the residential colony, playgroundarea, ARC Complex and at the junction of NH-8have been done to give green and pleasant view tothe passengers. Moreover, a large rose garden overan area of 16 acres having 2400 roses plants with250 varieties is being maintained by AAI, whichgive a very colourful and pleasant view. AtMumbai airport, development and maintenance ofgreen belt / plantation / landscapes has beenprivatised and its maintenance has given a verylush green look to the airport. The same thrusthas been given to development of landscape /plantation at other airports also.• Environment Friendly Air-conditioningSystemAt the airport, most of the buildings are centrallyair-conditioned and have water chilling units oflarge capacity. Accordingly, the water requirementsfor these air-conditioning plants are highand accounts nearly 40-50% of total requirementof airports. Considering the scarcity and quality ofwater at airports such as Chennai which is mostlyobtained from tube wells, this concept has beenreviewed and now onward at such places aircooled chillers shall be provided. Recently, aircooled chillers for the extended areas of Annainternational terminal, Chennai have beeninstalled.• Dissemination of EnvironmentInformationAAI has also taken up a proposal for setting up aENVIS (Environment Information Centre) forcivil aviation at NIAMAR where all the informationfor all airports such as noise levels, the birdhits, air attributes, occupation and health aspects,risk hazards and land use, land cover in andaround the airport, height restrictions and buildingcode regulations to be implemented in theairport zones will be documented from the pointof view of environmental hazards. This facility willbe helpful in the development of aviation sector.This project is assisted by the World Bank alongwith the other ENVIS (Environment InformationCentres) being established all over India.MINISTRY OF CIVIL AVIATION

7.7 CONSTRUCTION OF MARTYR’SPLATFORMConstruction of martyr’s platform at variousairports in India has been taken up as homage tomartyrs, who sacrificed their lives for the nation.7.8 I.S.O. CERTIFICATIONAirports Authority of India has been awardedcertificate of approval under ISO 9001 for theCoimbatore airport, NSCBI airport, Kolkata andSardar Vallabhbhai Patel international airport,Ahmedabad.7.9 RESTRUCTURING OF DELHI ANDMUMBAI AIRPORTS• On 11 th September 2003 Governmentapproved the restructuring of Delhi andMumbai airports by adopting the JointVenture route.• The Hon’ble Finance Minister in hisbudget speech for the year 2003-04announced that two airports at Delhiand Mumbai will be renovated/modernisedalongwith the modernisation ofcertain selected sea ports at an estimatedcost of Rs.11000 crores. The fundingmechanism aims at leveraging publicmoney through private sector partnership,wherever possible. The two airportsat Delhi and Mumbai will be renovated/modernised by incorporating twoseparate companies.• The AAI (Amendment) Act, 2003enables AAI to transfer the operationsand management of its existing airportsby way of long-term lease to privateparties. The Act, inter alia provides forexclusion of private airports (like BIAL)ANNUAL REPORT 2003-2004from the ambit of AAI Act, exceptingsecurity and ATC functions, which willcontinue to be discharged by AAI. TheAct also authorises AAI to charge AdvanceDevelopment Fee (ADF) for thedevelopment/upgradation of existingairports and for the setting up ofgreenfield airports. In addition, the Actalso seeks to prevent and remove encroachmentson airport land.• AAI is currently in the process of settingup two separate companies for Delhi andMumbai airports.• The Government decided to constitutean Empowered Group of Ministers(EGOM) to take up decisions on variousissues connected with the restructuringof Mumbai and Delhi airports. Further,to oversee the process of privatisation,Government constituted an Inter-Ministerial Group (IMG). The group ischaired by Addl. Secretary & FinancialAdvisor of Ministry of Civil Aviation(MoCA) and has representatives fromthe Ministry of Civil Aviation, Ministryof Finance, Department of Dis-investment,Ministry of Law, Justice & CompanyAffairs and AAI.• Based on the timetable approved byGovernment of India (GOI), it is anticipatedthat the Joint Venture Project(JVP) for both the Joint Venture Companies(JVCs) will be in position within8 months from the financial closureexcluding the time required for obtainingthe approvals of the Government ofIndia at certain stages of the transaction.• To assist the Ministry of Civil Aviation/AAI in the restructuring process, AAIinvited technical and financial bids for53

54the appointment of Financial Consultants.M/s ABN Amro have been appointedas the Financial Consultant forthe transaction.• Action is in hand for obtaining theapproval of EGOM for appointment oflegal consultant.• After obtaining the approval of EGOM,Expressions of Interest (EOI) have beensolicited from interested parties and thecomplete documentation, in this regard,was uploaded in the websites of AAI andMoCA on 17.02.2004. The last date forsubmission of EOI is 20.07.2004.Actions for finalisation of informationmemoranda, concession agreement andRFP document are in hand.• It is also proposed to appoint a GlobalTechnical Adviser(GTA) to advise AAI/MoCA on all technical aspects of thetransaction. Request for proposals(RFP) have been sought through advertisementin the media and the RFP hasbeen uploaded in the MoCA/AAIwebsites.• Action is also in hand for the selection ofAccounting and Tax Advisor.7.10 GREENFIELD AIRPORTS• Bangalore International AirportA greenfield airport at Devanahalli nearBangalore is being implemented on build, ownand operate (BOO) basis with public privateparticipation. Government of Karnataka (GoK)through Karnataka State Investment and IndustriesDevelopment Corporation (KSIIDC) andAAI together are to hold 26% equity and thestrategic joint venture partners are to hold thebalance 74%. The consortium lead by Siemens,Germany with Unique Zurich, Switzerland &Larsen & Toubro India Ltd as other members, arechosen as the strategic JV partners.The Working Group constituted by the PrimeMinister Office (PMO) (comprising the MoCA,MoF, MoL and GoK) finalised the draft concessionagreement, which has since been approved by theGovernment. The draft concession agreement forthe Bangalore airport project has been approvedby Cabinet on 20 th January 2004. Certain concernsraised by GoK/ Bangalore InternationalAirports Ltd. (BIAL) in the approved version arebeing examined in consultation with Ministry ofLaw.The Land Lease Agreement and State SupportAgreement have been finalised and are awaitingthe finalised version of the Concession Agreement,whereafter, appropriate amendments will becarried in these agreements before execution.BIAL has appointed ICICI as the lead lender andthey have commenced their preliminary work.Other agreements such as Operation & Managementservice agreement, CNS / ATM agreementetc. are in the process of finalisation. The financialclosure is expected to be achieved shortly. Thetarget opening date for the airport is 33 monthsfrom the date of financial close.• Hyderabad International AirportThe Government of Andhra Pradesh (GoAP) haveselected a consortium led by M/s GMR InfrastructureLtd. with Malaysian Airport Holding Berhard(MAHB) as the Developer for greenfield airportat Shamshabad near Hyderabad. A shareholders’agreement was executed by the parties viz. M/sGMR, M/s MAHB, AAI and GoAP on 30 thSeptember, 2003. GoAP has also entered intothe state support agreement and the land leaseMINISTRY OF CIVIL AVIATION

agreement with the GMR led consortium on thesame day. Further action has been initiated by theGMR-MAHB consortium to prepare a DetailedProject Report (DPR).7.11 PERSONNEL & INDUSTRIALRELATIONS• Human Resource ManagementBoth in executive and non-executive cadres,employees are well qualified. There are a numberof officers with management and technical qualificationsfrom reputed management institutionsand IITs. Under continuing education scheme,employees and officers are encouraged to acquirefurther professional qualifications in their field ofspecialisation and on successful completion, theyare given attractive incentives. In addition,employees and executives are exposed to continuousin-house training, job rotation and job enrichmentprogrammes. As a result of these measures,AAI has vast reservoir of well qualified andtechnically trained manpower, with high motivationand morale.• Employee RelationsAAI Policy to have ‘one industry one union’ has paidrich dividend in harmonising good industrialrelations over the years. Cordial industrial relationswere maintained, as a result of which theairport operations went on smoothly throughoutthe year. This was possible also due to continuousinteraction with the representatives of the recognisedunion at all levels i.e. corporate headquarter,regional headquarters and airports level. In orderto resolve various issues pertaining to employees’service matters, regional joint consultative meetingswere held between union representatives andmanagement at Guwahati CATC, Allahabad,Chennai and Goa for Western Region and CSIairport during the year.• Scheduled Castes And ScheduledTribesIt is a continuous endeavour on the part of themanagement to implement, in letter and spirit,the presidential directives on reservation of SCsand STs. Interactions with the representatives ofAAI SC & ST Employees Welfare Association andNational Commission for SCs & STs have helpedin achieving not only the requisite percentage inrecruitment and promotions but has also helpedin resolving grievances of employees in time.This year, AAI launched special recruitment driveto fill-up backlog of vacancies which will furtherimprove the percentage of SCs & STs in theservices.7.12 TRAINING• National Institute of AviationManagement & Research (NIAMAR)National Institute of Aviation Management &Research, popularly known as NIAMAR, impartstraining in all disciplines of airport management,except air traffic control and fire training, forwhich AAI has dedicated institutes established atAllahabad, New Delhi and Kolkata.NIAMAR conducts specialised courses in airportoperations, airport engineering, construction,commercial, cargo and personnel management.NIAMAR is a member of the ICAO-TRAINAIRprogramme and has developed StandardisedTraining Packages (STPs) on ‘Bird Hazard ControlManagement’ and ‘Airport Pavements Maintenance’.NIAMAR also conducts IATA recognised‘Dangerous Goods Regulations’ course. To worktogether in the training area, NIAMAR has55ANNUAL REPORT 2003-2004

56signed MOU with CATC, Thailand, Airport DeParis Training Centre, France and MDI, Gurgaon.NIAMAR is fully equipped with the latest trainingaids, a residential complex with 30 fullyfurnished air-conditioned rooms and recreationfacilities etc.During the year 2003-04, NIAMAR trained 1414employees in 110 training programmes, trained50 CISF officers through a programme on ‘CustomerCare & Passenger Facilitation’, 50 foreignparticipants in 11 programmes for foreign participants.50 foreign participants from different countrieslike Bangladesh, Brunei, Combodia, China, HongKong, Japan, Maldives, Nepal, Phillipines,Republic of Korea, Singapore, Sri Lanka, Thailand,Tonga, Vietnam attended the programmesat NIAMAR.• Civil Aviation Training College,AllahabadThe Civil Aviation Training College (CATC),popularly known as CATC-Allahabad, is anothertraining establishment of AAI dedicated totraining in the area of Air Traffic Management(ATM) and Communication, Navigation andSurveillance (CNS). CATC-Allahabad is fullyequipped with modern training aids and has 19fully air-conditioned classrooms, 22 lab rooms forCNS equipment, 7 labs for ATM, library andauditorium.CATC-Allahabad also has a TRANAIR unit forSTP development and has developed 7 STPs. Anew STP titled “Senior Assistant ATC – STP” hasbeen handed over to ATM faculty for implementationon regular basis. Job specific training isimparted using STPs based on ICAO-TRAINAIRmethodology. During the period April 2003 toMarch 2004, 163 employees have been trained inCNS stream in 26 courses and 250 employeeshave been trained in ATM stream in 29 courses.413 trainees have been trained at CATC in theyear 2003-04.• Fire Services Training College (FSTC),KolkataThe Fire Services Training College (FSTC),Kolkata is engaged in providing basic, refresherand advance fire fighting training to all grades offire service personnel and prepares them forhandling aircraft and airport installations fireprotection. The training curriculum is upgradedfrom time to time to include requirement of latestaviation technology to conform to ICAO requirements.The courses offered at FSTC consist of – basiccourse for newly recruited fire & rescue operator(FRO), ARC-I (fireman ship course) for promotionfrom FRO to fire foreman, junior fire officercourse, refresher course for FRO, refresher coursefor fire foreman and refresher course for senior fireforeman.During the year, the total number of traineespassed out from the Fire Services Training College,Kolkata are AAI - 218, IIPM - 163 and CIAL-13.In addition, fire protection category at eightairports, namely, Calicut, Vijayawada, Lengpui,Amritsar, Kargil, Nagpur, Jabalpur,Bhubaneswar, Amritsar, Guwahati, Jaipur andAhmedabad has been upgraded.• Fire Training Centre (FTC), New DelhiFire Training Centre (FTC) at New Delhi has beenestablished to provide training to airport fireservice personnel as per ICAO guidelines. FTCimparts training with the prime objective ofpreparing fire personnel for dedicated roles andresponsibilities, upgradation of knowledge, skills,MINISTRY OF CIVIL AVIATION

understanding and attitude to enable them toperform their role effectively, competently andsafely, minimising the likelihood of accidents andinjuries to personnel and handling and maintainingequipment in order to deal with the majoraircraft fire by means of a most carefully plannedand rigorously followed programme of training.To achieve these aims, drills, simulation and mockexercises are conducted. The trainings impartedat FTC are registered in the ICAO Directory.7.13 PUBLIC GRIEVANCE REDRESSALMACHINERYPublic grievance redress machinery is functionalboth at the corporate headquarters, the regionaloffices and airports by appointment of dulydesignated Public Grievance Officers. The objectiveis to provide easily accessible machinery forquick redressal of grievances.The grievances received from individuals andnodal ministries / departments of Government ofIndia, VIPs, associations, etc. are processed withpromptitude within a time frame.With the introduction of computerised system ofPGRAMS, direct access has been established withthe Cabinet Secretariat (Directorate of PublicGrievances) and Ministry of Civil Aviation.Another initiative taken to redress the publicgrievances and to solicit their suggestions is byincluding separate page on public grievances inAAI’s Website.A Public Grievance Officer has been appointed ateach airport. Besides, in order to ensure propermonitoring, Executive Director level officer inCHQ has been appointed as Public GrievanceOfficer for AAI as a whole. Similarly, StaffGrievance Officers are appointed at each airportand monitoring is done at the level of GeneralManager in CHQ.7.14 VIGILANCEIn an endeavour to give impetus to the ongoingefforts to check malpractices and misconduct,emphasis was laid on expeditious disposal ofdisciplinary cases and strengthening of preventivevigilance measures through prompt redressal ofcomplaints. The newsletter ‘UPDATE’ continuesto be appreciated as a platform for exchange ofnews and views amongst AAI executives.As a proactive effort, four 3-day workshops ondisciplinary proceedings were organised atNIAMAR in the current year with special moduleon work ethics, moral values, integrity andexcellence at work place in each of the awarenessprogrammes.Vigilance awareness week-2003 (from 3 rd Novemberto 8 th November) was observed at all the 124AAI airports. Special intensive campaign waslaunched at 69 of AAI’s commercially importantairports and involved AAI’s officers and staff, theirfamilies and general public to increase the sphereof awareness on issues of corruption, inculcatesound value system and bring in large-scalesensitisation. As part of vigilance awareness week,activities such as seminars, talks and lectures byeminent personalities and spiritual teachers werehighly appreciated. In addition, various competitionslike debates, elocutions, essay writing inEnglish and Hindi, painting contests on vigilancerelated topics and ‘PANTOMIME – Street Play’to create a visual impact were also organiseddrawing an overwhelming response.Special emphasis was laid on effecting systematicchanges to provide an efficient and transparent57ANNUAL REPORT 2003-2004

work ethos. Suggestions were given to streamlinerecruitment procedures, cargo functioning,tendering processes. Old cases with high financialand administrative implications were diligentlypursued for realisation of outstanding dues to theauthority.7.15 PROGRESSIVE USE OF HINDIImplementation of Official Language and rulesmade thereunder was ensured in the authority.During the year, workshops and seminars onHindi were held at the corporate headquarters,regional headquarters and at various airportsthroughout the country, so as to propagate andincrease use of Hindi in office work. Employeeswere provided training in Hindi typing, stenographyand computers on continuous basis. Noting,drafting, debate, essay writing competitions wereheld for the employees and executives during thecelebrations of Hindi fortnight. The Second Sub-Committee of the Parliamentary Committee onOfficial Languages inspected airports. The‘Rajbhasha Shield’ was awarded to NSCBIairport, Kolkata for remarkable performance inthe field of implementation of Hindi as OfficialLanguage and their house journal ‘Chetna’ wasawarded, for the second consecutive year, prize forthe best in-house Hindi magazine among thepublic sector undertakings.****58MINISTRY OF CIVIL AVIATION

Air India Limited88.1 INTRODUCTIONAir India was established in 1953 under the AirCorporation Act, 1953 to provide safe, effective,adequate, economical and properly coordinatedinternational air transport services.The undertaking of Air India was transferred toand vested in Air India Limited, a public limitedcompany registered under the Companies Act,1956, with effect from 1.3.94, after the AirCorporations (Transfer of Undertakings andRepeal) Act, 1994 came into effect.8.2 FLEET STRENGTHAs on 31 st March, 2004, Air India has the followingaircraft in its fleet.Total Fleet Owned Avg. Age Leased Avg. Age(Owned)(Leased)B747-200 4 4 24.3 yrs - -B747-300 2 2 15.4 yrs - -B747-400 9 6 11.0 yrs 3 14.3 yrsA310-300 19 8 14.6 yrs 11 12.97 yrsTOTAL 34 20 14Note : It is proposed to induct 2 more B747-400 aircraft on dry lease – 1 in June 2004 and 1 in November 2004.Air India’s B747-400 AircraftANNUAL REPORT 2003-200459

8.3 DEBT EQUITY RATIOThe debt equity ratio of the company as on 31stMarch 2003 was 4.4 : 1 against 7.5 : 1 as on 31March 2002 and is expected to improvefurther to 3:1 .8.4 SUMMARY OF FINANCIAL PERFORMANCE FOR THE LAST 7 YEARS:Particulars Units 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04RevisedBudgetEstimatesFinancial PerformanceOperating revenue Rs.Crores 3837.21 4135.26 4448.05 4927.45 4751.36 5275.91 5897.30Operating expenses Rs Crores 4029.84 4139.84 4372.00 4924.35 4805.89 5465.63 6049.70Operating profit/(loss) Rs.Crores (192.63) (4.58) 76.05 3.10 (54.53) (189.72) (152.40)Total revenue Rs.Crores 4174.16 4236.72 4772.62 5278.84 5032.94 5689.88 6110.60Total expenses Rs.Crores 4355.17 4411.20 4810.25 5323.24 5017.50 5556.02 6090.10Net profit/(loss) Rs.Crores (181.01) (174.48) (37.63) (44.40) 15.44 133.86 20.50Yield per rtkm (schdserv rev per rtkm) Rs. 21.95 22.90 24.43 26.02 26.38 25.80 25.73608.5 OTHER REVENUE GENERATINGACTIVITIESThe revenue earned by the Engine OverhaulDepartment during the period April 2003 toMarch 2004 was Rs.23.49 crores.• The estimated ground handling andsecurity revenue for the fiscal year 2003-04 will be approx. Rs. 305 crores and Rs.46 crores respectively.8.6 HIGHLIGHTS OF THE YEAR• A special flight B747-400 aircraft wasoperated for mentally and physicallychallenged/cancer afflicted/ terminally illpeople (total on board 389) on October15, 2003, route Mumbai/ Mumbai for 1hour and 25 minutes. The operatingand cabin crew as also the film personalityMr. Javed Jaffery helped to create ahappy atmosphere on board.• Iftar meals were uplifted for passengerson India /Gulf, Gulf/India sectorseffective October 26, 2003 during theRamadan period.• Air India has been awarded the prestigiousInternational Flight CateringAssociation Mercury Award (Bronze),which was held at Frankfurt on 23 rdFebruary, 2004.• A basmati rice festival was organised onboard on flights ex-Delhi from 15 thFebruary, 2004 to 29 th February, 2004.This rice was supplied by Agricultural &Processed Food Products Export DevelopmentAuthority which comes underMinistry of Commerce & Industry.• Fuel contract for Salalah was awarded toM/s Shell for the period 01/04/2004 to31/05/2005.• For winning the Rajbhasha Awardcontinuously for last 3 years, Air-Indiawas awarded the Special RajbhashaPuraskaar by ‘Ashirwad’, a socio, literaryand cultural organisation of Mumbai on26 th September, 2003.MINISTRY OF CIVIL AVIATION

8.7 SUMMARY OF PHYSICAL PERFORMANCE FOR THE LAST 7 YEARS.Physical Performance 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03Revenue hours flown (Total) No. 89573 84065 84391 79289 80380 84468 91318ASKM (Total) Million 18041.1 18067.3 18591.7 17821.5 17915.6 17680.1 18715.6ATKMs(Total) Million 2404.3 2445.7 2540.9 2415.4 2419.2 2392.6 2495.5Pax load factor % 65.7 67.5 66.9 70.3 73.1 66.6 71.6Overall load factor % 60.5 63.4 61.6 65.1 67.4 60.8 64.68.8 OPERATIONS• Daily flights to Dubai with effect fromSummer Timetable 2003Air India introduced daily standardised departureflights to/from Dubai to Mumbai, Delhi andKochi. In addition, it has also enhanced its frequenciesfrom Thiruvananthapuram andKozhikode to a daily operation effective 26October, 2003 to 27 March 2004. As a result, AIhas daily flights to Dubai from Mumbai, Delhi,Kochi, Kozhikode and Thiruvananthapuram withstandardised departures effective Winter 2003.Effective the Summer Timetable which comes intoeffect from 28 th March, 2004, the following newadditional flights have been introduced :• 1 SINGAPORE/KUALA LAMPUR• 1 NAIROBI/DAR-ES-SALAAM• 1 MUMBAI/HYDERABAD/JEDDAHA vice-versa• 1 MUMBAI/JEDDAHA vice versa• 1 LUCKNOW/ DELHI/ JEDDAHvice-versa• 1 additional flight to RIYADH• 1 AL -AIN flight extended toSALALAH (effective 01 st April 04)• 2 LONDON terminators MUMBAI/AHMEDABAD /LONDON vice versa• 2 DELHI/AMRITSAR/DELHI (effective16 th April 2004)ANNUAL REPORT 2003-2004• Code Sharing ArrangementsIn addition to its own network of flights, Air Indiaoffer its passengers several more destinations andflights through codeshare arrangements withother airline partners:Thai Airways - Los AngelesAsiana - Seoul and SanFranciscoSwiss - ZurichAeroflot - MoscowAustrian Airlines - ViennaSingapore Airlines - Los Angeles andSan FranciscoMalaysia Airways - Los AngelesTurkish Airlines - IstanbulAir France - Amsterdam,Berlin andGeneva• More Flights to Existing DestinationsShanghai, Bangkok, Hong Kong and Tokyo withThai AirwaysParis with Air FranceDubai with Emirates & Thai AirwaysKuwait with Kuwait AirwaysFrankfurt with LufthansaSingapore with Singapore Airlines & Silk AirKuala Lumpur with Malaysian AirlinesLondon with Virgin Atlantic.• Improved ConnectivityWith the objective of improving the product forinterior cities in India, some of the incomingflights from Newark and Chicago have been61

extended to Ahmedabad and Bangalore. Thus, fora passenger boarding in New Jersey (Newark), nochange of aircraft is required for travel to the enddestination i.e Ahmedabad.8.9 THE PATTERN OF OPERATIONS TO DIFFERENT DESTINATIONS 2003-04Routes Summer 2003 Winter 2003India/London/New York 7 7India/London(T) 1 —India/London/Chicago 3 —India/Paris — —India/Bangkok/Tokyo 2 2India/Tokyo 2 2India/Bangkok/(Guwahati) 2 —India/Hong Kong/ Osaka 2 2India/Hong Kong 3 3India/Singapore 9 5India/Singapore/Jakarta 3 3India/Kuala Lumpur/Singapore 2 6India/Nairobi/Dar – Es-Salaam 2 2India/Gulf 103 104 (102 in Jan. / Feb. 2004)India/Paris/New York 5 7India/Frankfurt 3 3India/Frankfurt/Chicago — 3 (Effective Dec. 2003)India/Bangkok/Shanghai — 2 (Effective Dec. 2003)628.10 MARKETING STRATEGY• Special Prorate AgreementsAir-India has recently entered into a very attractiveSpecial Prorate Agreements (SPA) withLufthansa whereby the payout has reducedconsiderably and AI retention has increasedsubstantially. Air India have also improved uponits existing SPAs with Cathey Pacific, Emirates,Malaysia, Royal Jordanian, Singapore and ThaiAirways which will enable a wider choice ofdestinations and better connections.• Flying Returns Programme (FRP)The FRP was launched in India in June 1994 andwas extended to the Gulf in February 1997. Itwas further extended to the USA, Canada and UKon November 1, 2001, to Hong Kong, Singapore,Thailand, Malaysia, Indonesia, on July 15, 2002and launched to Sri Lanka in April, 2004. TheFRP will shortly be launched to Japan Region.Residents of the above countries will be offeredfree enrollment into the FRP.The membership base is as under:Region 31 Mar 2003 1 Mar 2004India 1,52,729 1,81,018Gulf 10,239 13,452USA/UK 21,425 43,138Far East & SE.Asia 3,444 5,406TOTAL 1,87,837 2,43,014Revenues earned from Long & Short Term PartnershipAlliances - American Express Bank, ITCMINISTRY OF CIVIL AVIATION

Welcome Group Hotels, LKP Forex Ltd.Hutchinson Max Telecom, ABN-AMRO, ICICIBank, Diners & Citibank, Club Mahindra, IBTC,from April 01 2003 to March 31,2004 are asunder:01 April 2003/March 31, 2004Rs. (in lacs)Long Term Promotions 116.00Short Term Promotions 4.77Enrolments/Renewals/ 40.00DuplicatesTOTAL 160.77• The Maharajah Club (TMC) & the LeadingEdge Club (LEC)TMC and the LEC are two elite clubs of Air-India.Membership to both the clubs is by invitationonly with certain criteria laid-down. Membersenjoy exclusive benefits and privileges such asupgrades, lounge facilities, priority check-in,baggage clearance, limousine service, excessbaggage tele-check-in and value-added benefitsand privileges from partnership alliances such asITC Welcome Group, Diners & Citibank, AmericanExpress, LKP Forex, DBS Instant OfficeWorldwide, Westside Stores and Club MahindraHolidays.The Clubs will be re-launched in August, 2004.The membership base from August, 2001 - 31March 2004 is as under:The Maharajah Club (TMC) 1590Leading Edge Club (LEC) 1195Total 2785• Companion Free SchemeThe Companion Free Scheme is also available to/from Far East/South East Asia in J class. Thescheme is valid up to 31 st March, 2005.ANNUAL REPORT 2003-2004• Additional Mileage Points SchemeThe scheme was valid up to 31 st March, 2004. Eff.1 st April 2004, the additional mileage pointsscheme has been extended till 31 March 2005.Free Membership with flying returns will beawarded to non-members. The scheme is validupto 31 March 2005.• Short Term FFP Promotions – “Fly MoreGet More”This scheme has been launched effective January2004 and will be valid up to 30 th September2004. Any individual residing in India aged 12years and above can become a member of theFlying Returns Programme by travelling on anysingle sector on Air India during the validityperiod. Membership is subject to fulfillment ofeligibility criteria and terms and conditions of theflying returns programme.• Net benefits at www.airindia.com (IndiaFFP)Frequent Flyer members can now earn doublemileage points for tickets purchased in Indiathrough Air India’s website www.airindia.com.Those who are not members of Flying Return willbe offered free membership for enrolling as amember in India. The incentives were valid up to31st March, 2004.• Air ticket auctions throughIndiatimes.comThe concept of online auctions has been successfullyintroduced in the Indian market for variousproducts. This new concept has been launched forair travel by a leading internet portalIndiatimes.com and has been successfully used byAir-Sahara and Indian Airlines. Air-India has alsocommenced auction of seats throughIndiatimes.com. From a marketing view-point,the auctions are meant to generate interest andexcitement in the market about the Air India63

product and also fill up vacant seats in the leanseason.• The salient features are as follows- The auction is available on specificflights and dates in the economy class,which will be pre-determined.- It is also available in executive class inthe India/Paris-Newark route.- The auction will be open 60 days beforeflight departure and will close 14 daysprior flight departure.- The auction is for a very limited numberof seats on each flight.The Marketing division depending on demandand the seasonality selects the specific sectors andflights.At the end of each day, the winners of the auctionsare advised by Air-India and the tickets are issuedby the YATRIK cell in Mumbai and couriered tothe passenger by India Times.• “YATRIK” – Your Airline TravelReservation Internet KitAir-India has launched its online booking facility“YATRIK” – Your Airline Travel ReservationInternet Kit on 1 st January 2002 for passengersbuying tickets in India. This facility was extendedto the U.S. on 1 st July 2002 and has been extendedto all Air India online points abroad from2 nd August 2002.Passengers from all Air India online pointsglobally can now log on to the AI website, checkavailability and fares, make reservations, pay forthem online using credit card and have the ticketsdelivered to them. They can also request their seatand meal preferences while booking. Hence theobjective is to provide value-added service, whichis accessible, available and affordable to the endcustomer. It is available 24/7, interactive can beaccessed from anywhere in the world and comes atan attractive price.64Executive Class Cabin of B747-400MINISTRY OF CIVIL AVIATION

From April 2003 to February 2004, Air India hasearned revenue of Rs.10.74 crores from this onlinebooking facility.8.11 AIR-INDIA’S FUTURESTRATEGYAir India has sent a proposal for acquisition of 10medium capacity long-range (A340-300) aircraftand 18 small capacity short-range (B737-800)aircraft at an estimated cost of Rs.10,859 crores.With this acquisition, Air India will phase out itsolder B747-400/A310-300 aircraft. The projectreport is presently under consideration of Government.8.12 HAJ OPERATIONS 2004Haj 2004 operations were successfully carried outby Air India with its own aircraft in associationwith Indian Airlines and Saudi Arabian Airlines. Atotal of 71,691 Haj pilgrims were carried. Thefirst phase of Haj operations was from December24 th 2003 to January 26 th , 2004 and the secondphase from February 04 th , 2004 to March 06 th ,2004. Jaipur was added as new embarkation pointduring Haj 2004.8.13 HUB AND SPOKE FLIGHTSCapacity has been leased from Indian Airlineswith a view to providing seamless connections tovarious cities in India from the gateway points atMumbai and Delhi. These hub & spoke flightsoperate with Air India flight numbers and provideseamless connectivity to international passengersbetween various points in the Gulf as well asEurope/UK/USA to interior domestic points inIndia via the international hubs of Mumbai andDelhi. The passengers are able to clear customsand immigration at the final point of destination.This has proved to be an effective marketing tooland convenient for passenger.8.14 ENGINEERING• Fleet Utilisation & Despatch ReliabilityAircraft utilisation and technical despatch reliabilityfor the period April 2003 to February 2004 isgiven below. Utilisation is given in terms ofaverage daily utilisation per aircraft in block time.The technical delays of duration 15 minutes andabove are considered for the technical despatchreliability.APR’03-FEB’04Aircraft Type Utilisation/day/acft(Hrs) Tech. Despatch Reliability (%)B747-200 6.0 96.0B747-300 8.3 95.1B747-400 12.0 97.4A310-300 9.2 98.7• Aircraft AvailabilityOn the average, 85.9% of the fleet was madeavailable for service during April’03 -March’04.• Additional OperationsDuring the period under consideration, 104additional flights were operated over and abovethe schedule, to cater to commercial requirements,65ANNUAL REPORT 2003-2004

66resulting in an additional 528 hours of operations.• Extra Section OperationEight VVIP operations were undertaken duringthe period under consideration.• Maintenance of two Ariana AfghanAirlines A300B4Engineering has undertaken maintenance (includingrepair / snag rectification) of two A300B4aircraft of Ariana Afghan Airlines. The firstaircraft was attended to in May-June 2003 andthe second aircraft was attended to in June-July2003. Ariana’s technical personnel also accompaniedthe aircraft to gain experience.8.15 GROUND SERVICESDEPARTMENT (GSD)During the period April 2003 – March 2004, AirIndia handled –AI Flights - 21111Flights of Foreign Carriers - 20944Other flights - 1245• GSD successfully handled the Haj flightstotalling 665 at Mumbai, Delhi,Chennai and Kolkata.• Equipment serviceability during the yearApril 2003 – March 2004 on an averagewas 96.34% respectively.• On time baggage delivery statistics forthe period April 2003 – March 2004 onaverage at Mumbai and Delhi are94.17% and 97.89% respectively.As on 31 st March 2004, Air India providedground handling services to a total of 79 customerairlines at different airports:–Mumbai – 24Delhi – 21Chennai -- 13Kolkata – 07Thiruvananthapuram – 03Kochi -- 11• During the the year 2003-04, Air Indiasecured new ground handling contractsof Sri Lankan airlines, Air Sahara andGulf Air at Cochin, KLM Royal DutchAirlines, Gulf Air, Royal Jordanian (FF),Singapore Airlines(FF) and Alitalia atKolkata, China Airlines(FF), TurkishAirlines and Air Canada at Delhi, SilkAir at Trivandrum, Thai Airways atChennai and Aeroflot at Mumbai.8.16 SPORTS ACTIVITIESAir India has a long tradition for supportingsports and sportsmen since the time of inception.Air India has provided financial assistance, transportationfacilities as well as contract employmentto a number of outstanding up-coming sportsmenand helped them in their formative years. AirIndia has set up a sports division, which specialisesin promotion of sports headed by a controller ofsports and officers from the sporting disciplines.Air India has also set-up a National HockeyAcademy at National Stadium in Delhi, which hasproduced a number of players who are todaydoing duty for the country in senior as well asjunior teams.8.17 POLLUTION CONTROLMEASURESThe Materials Management Department hasarranged for the disposal of garbage and wasteitems regularly so as to ensure that such accumulationsdo not create any pollution problems.8.18 CITIZEN’S CHARTERAir India brought out its revised citizen’s charterin August 2002. It is a complete, handy referenceguide to everything a passenger wants to knowMINISTRY OF CIVIL AVIATION

about Air India. Information on reserva.tions, check-in-procedures, lounge facilities,baggage allowance, cargo handling, in-flightservices, security regulations and the frequentflyer programme-flying returns and specialpromotional schemes on Air-India are providedconcisely in this brochure.8.19 WELFARE OF SENIORCITIZENSSenior citizens traveling from India to USA, UKand Europe were offered special discounted faresfor travel on Air-India flights. These return fares,which were up to 25 per cent, lower than normalfares were valid for outbound travel from India tillMarch 31, 2004.Travel on these concessional tickets was notpermitted out of India during January 2004 andfrom USA-UK-Europe to India between November15 to December 31, 2003 and July 2004.Air India have also offered very attractive fares onits domestic routes to senior citizens, blind people,cancer patients and armed forces personnel.8.20 HUMAN RESOURCESMANAGEMENTANNUAL REPORT 2003-2004• LWP & SWWSIn order to control staffing, two new schemes, viz.‘Shorter Working Week Scheme (SWWS)’ and‘Leave Without Pay Scheme (LWP)’ werelaunched in 1998. As per SWW scheme, employeeshave the option of working for 3 days in theweek for 60% of their present emoluments. Asper LWP scheme, employees can avail of leavewithout pay for a period of 2 years, which isextendable upto 5 years. As on 01.03.2004, 24employees have availed of SWWS and 133employees have been released under the 2 yearsLWP Scheme. The above schemes on redeployment,LWP and SWWS have been discontinuedeffective 1 st April 2004.8.21 VIGILANCEThe Vigilance Department is responsible for theimplementation of anti-corruption measures of theCentral Government and for maintenance of highdegree of purity, integrity and efficiency in theorganisation. Apart from dealing with vigilancecases, the department also undertakes regular andsurprise inspections of sensitive areas, reviews thesame and recommends means for streamlining ofprocedures for minimising the scope for corruptionor misconduct. Air India observed the VigilanceAwareness Week from 3 rd to 8 th November2003 during which essay and slogan competitionswere organised.8.22 STEPS TAKEN TO IMPROVEPUBLIC GRIEVANCE REDRESSALMACHINERYRedressal of public grievances is handled inaccordance with the laid down procedures. Allcomplaints are speedily and effectively adhered. Asystem to handle complaints worldwide is alreadyin place and the procedure followed is aimed atproviding maximum passenger satisfaction. Allcomplaints are replied to passengers within 72hours of receipt of the complaint. Air IndiaLimited is committed to improve its ground andonboard services and every attempt is made toextend maximum comfort by way of professionalhandling with efficiency and respect to passengers.The office of the Manager-Passenger Relations atMumbai is provided with a direct telephonenumber 282 6295 to speak to the passengerdirectly and settle the matter. In addition thetravel related problems of the passengers can alsobe conveyed to Air India Limited.67

8.23 ESTABLISHMENT DIVISIONThe staff strength of the Company as on 01.03.2004.RegularStaff India Based Trainees Posted TOTAL LocalStaff GRANDStrength Abroad TOTAL14805* 140 167 15112 395 15507* Excluding 133 staff on two years leave without pay and 3 staff who are on deputation to DGCA/ ICAO/ MOCA.* 217 Employees have superannuated between October 2003 to March 2004 and 203 employees will superannuate between theperiod April 2004 to September 2004.8.24 TRAINING FACILITIESThe company has been imparting training invarious fields depending upon the need to technicaland general categories of officers and staff.The management has also nominated womenemployees to WIPS (Women in Public Sector) anorganisation, which has been constituted underthe aegis of SCOPE.During the period under consideration, 37 technicalcourses were conducted in which 760 personnelwere trained. After a decade, the InflightService Training & Development Centre is involvedin an intensive training programme forcabin crew recruits. Presently, 120 cabin crew areundergoing the ab-initio training.A 3-day Induction training programme wasconducted for approximately 50 In-flight Supervisors.In-flight Service Training & Development centreconstructed a training module for Indian AirlinesVVIP crew.8.25 AIR INDIA CHARTERS LIMITED• IntroductionAir India Charters Limited (AICL), after havingobtained certificate of commence, started businessin 09 th September, 1971, was registered as awholly owned subsidiary of Air India Limitedunder the Companies Act, 1956. During the yearunder review, the company has earned net profitof Rs.13.28 lakhs.• Operations:The company continued to provide securityservices to foreign airlines. At present, the companyis providing security services to 13 foreigncarriers with 60 flights per week. In addition tosecurity handling, AICL is also providing passengerand cargo handling services to Kuwait Airwaysat Mumbai.The company has entered into a commercial andground handling agreement with M/s. ChinaAirlines Limited of Taiwan. The ground handlingagreement is for Delhi, where China Airlines isoperating 3 frequencies per week with A 300aircraft. The estimated handling revenue wouldbe Rs.3.4 crores per annum.The company has also started providing groundhandlingservices at Cochin International Airportand for this purpose has recruited CustomerAgents, Ramp Agents and Security Agents oncontract basis.68******MINISTRY OF CIVIL AVIATION

Indian Airlines Limited99.1 ORGANISATIONIndian Airlines was set up under the Air CorporationsAct, 1953 with an initial capital of Rs.3.25crores with its corporate headquarters at Delhi.The undertaking of Indian Airlines was transferredto and vested in Indian Airlines Limitedwith effect from 1 st March, 1994 in pursuance ofthe Air Corporations (Transfer of Undertakingsand Repeal) Act, 1994. It has four regionaloffices located at Mumbai, Kolkata, Delhi andChennai. Its main objective is to provide safe,efficient, adequate, economical and properlycoordinated air transport service. It operates to58 domestic stations (including the operations byits wholly owned subsidiary Alliance Air) and 17international stations in 14 countries Kathmandu(Nepal), Colombo (Sri Lanka), Male (Maldives),Dhaka (Bangladesh), Bangkok (Thailand),Sharjah, Fujairah, Ras-al-Khaimah, Dubai(U.A.E.), Doha (Qatar), Bahrain, Muscat (Oman),Kuala Lampur (Malaysia), Yangon (Mynamar),Kuwait, Singapore and Lahore (Pakistan).Indian Airlines aircraft - celebrating 50 years of flying.69ANNUAL REPORT 2003-2004

9.2 OPERATIONAL FLEETThe operational fleet of Indian Airlines / Alliance Air at present is as under:No. of Average age as on 31 st Mar., 2004AircraftYearsAirbus A-300 04 22.1Airbus A-320 30 12.7Boeing 737-200 11 22.6Dornier DO-228 02 18.8Total 47 16.1Excludes 11 A320 aircraft and 4 ATR 42-320 on dry lease.The Boeing 737-200 and ATR 42 aircraft are being operated by Alliance Air.9.3 OPERATIONS• New FlightDelhi-Goa-Delhi with 3 flights per week with A320 aircraft• New sectors introduced on international networkSector Date of introduction Freq./Week(Aircraft)Jaipur-Bangkok/Singapore 15.10.2003 2 A320Delhi – Lahore 09.01.2004 2 A320• New Sectors Introduced on Domestic NetworkSector Date of Introduction Freq. /Week(Aircraft)Guwahati-Dimapur 02.01.2003 7 ATRGuwahati-Aizwal 05.04.2003 3 ATRKolkata-Shillong 07.04.2003 3 ATRAgartala-Silchar 15.04.2003 3 ATRRaipur-Chennai / Vizag 26.10.2003 4 B73770• HAJ FLIGHTSIndian Airlines operated 28 A300 services betweenSrinagar and Jeddah in Phase-I duringDecember’03 – January 2004 to carry 5896 Hajpilgrims.During January’04, 16 A320 services wereoperated between Gaya and Kolkata to carry1379 Haj pilgrims as part of Hub & Spokearrangement with Air India for onward carriage toJeddah.In Phase II, 28 A300 services were again operatedbetween Srinagar and Jeddah to bring back HajPilgrims during February-March 2004.16 A320 services were also operated betweenKolkata and Gaya to bring back Haj pilgrimsduring March 2004.Hub & spoke flights During the winter schedule2003-2004, 23 flights per week with A320aircraft operated on domestic routes as hub &spoke arrangements with Air India.Presently, Indian Airlines and Alliance Air jointlyoperate to 58 domestic stations and IndianAirlines operates to 17 international stations in 14countries.MINISTRY OF CIVIL AVIATION

9.4 CAPITAL STRUCTUREThe equity capital of the company has increasedfrom 105.19 crores as on 31.3.2002 to Rs.107.14crores as on 31.3.2003. The increase is onaccount of allotment of equity share to Governmentof India in lieu of sale of assets of AgroDivision belonging to Vayudoot. Rs.107.14crores includes loan capital of Rs.50.04 croresconverted into equity capital in June, 1995.9.5 FINANCIAL PERFORMANCEThere has been a net loss of Rs.196.56 croresduring the year 2002-03 compared to net loss ofRs.246.75 crores during the year 2001-2002.The net loss is lower mainly because of improvedphysical performance and strict cost controlmeasures undertaken by the company.The Company incurred losses for the year 2002-03 mainly due to extraneous factors beyond itscontrol, which interalia include the following :• There was virtually no growth in the domesticmarket over the past few years. At a time,when the air travel market was still recoveringfrom the impact of 11 th Septemberattacks in the US, it had to face the adverseimpact of Iraq war and SARS.• The ATF cost gone up significantly as fuelprice increased by almost 20% on an averageduring the year 2002-03. The ATF pricetouched a historical high of Rs.25,200 perkilolitre in March, 2003.• There was increase in flying cost due toclosure of Pakistani airspace as flying time ofservice to Gulf destinations increased.• The aviation insurance cost increasedthreefold post Sept’11 US WTC incidents.• The company continues to deploy largercapacity on category II (North-East, J&K,Leh, Andaman & Nicobar) and category III(state capitals, tourist destination and othernon-trunk metro) routes, in excess of RouteDispersal Guidelines issued by DGCA forsocio-economic reasons. The excess deploymentof capacity in category II and categoryIII routes affect the profitability of thecompany to the tune of Rs.200 crore annually.Reasons for losses in the year 2002-03:-( Rs. Crores)ParticularsAmount Increase in ATF cost 147.00 Loss due to closure of Pak airspace 9.00 Decline in seat factor 55.00Total 211.00Financial Results for the year 2001-2002 and2002-2003 and for the period April-September,2003 vis-à-vis April-September, 2002 are summarisedbelow:-(Rupees in Crores)2001-2002 2002-2003 Apr-Sept., 2002 Apr-Sept. 2003Operating revenue 3769.91 4071.73 1992.85 2214.55Operating expenses 3990.56 4206.45 2235.30 2278.50Operating profit/(loss) (220.65) (134.72) (242.45) (63.95)Non-operating revenue 107.38 42.51 3.25 3.20Non-operating expenses 133.48 104.35 54.95 42.75Profit/(loss) before tax (246.75) (196.56) (294.15) (103.50)Profit/(loss) after tax (246.75) (196.56) (294.15) (103.50)Foreign exchange earnings 1320.90 1409.74 594.15 625.0071ANNUAL REPORT 2003-2004

In order to partially offset the huge increase ininput cost and to contain the losses, the companyincreased it’s domestic rupee fares by 10% inNovember 2002. Another hike of 15% indomestic rupee fares was effected in March 2003as ATF prices touched an all time high ofRs.25,200 per kilolitre. However, the additionalrevenue generated due to the hike of 15% effectedin March 2003 became available to thecompany only in the fiscal year 2003-04. Theadditional revenue generated by the upwardrevision of domestic rupee fares in November2002 was however, available only from Novembertill the end of fiscal year 2002-03.9.6 RESERVES & SURPLUSThe position of the reserves and surplus, loanfunds as on 31.3.2002 and 31.3.2003 are summarisedbelow:(Rupees in crores)Particulars As on As on31.3.2002 31.3.2003Equity capital 105.19 107.14Reserves & surplus 559.34 562.45Secured loans 275.86 442.07Unsecured loans 1104.44 723.59(Liability for aircraft & spares)Net worth (255.44) (446.94)9.7 PERFORMANCE RATIOSThe financial performance ratios of Indian Airlines for the last 7 years are as follows:Particulars 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03Ratio of operating 4.75 7.98 8.59 5.63 (2.25) (5.85) (3.31)profit/(loss) tooperating revenue (%)Ratio of net - 44.94 13.46 48.88 - - -profit (before tax)to equity capital72Ratio of net - 1.89 0.64 2.84 - - -profit (before tax)to capital employedRatio of current 0.68 0.66 0.61 0.53 0.50 0.49 0.48assets to current liabilitiesRatio of net profit - 59.22 15.01 36.08 - - -(before tax) to net worthOperating ratio 95.25 92.02 91.41 94.37 102.25 105.85 103.31(ratio of operatingexpenses tooperating revenue)Available tonne 50166 51656 53209 54072 57474 62240 67963kilometers per employeesRevenue tonne 32574 33106 33632 35484 38348 38781 44007kilometers per employeeMINISTRY OF CIVIL AVIATION

9.8 PHYSICAL PERFORMANCEParticulars 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03Available tonne kilometers 1075.238 1094.132 1122.922 1120.926 1153.684 1200.315 1308.018(ATKms) (million)Revenue tonnekilometers 698.116 700.896 709.079 740.285 777.342 755.547 845.097(RTKms) (million)Overall load factor (%) 64.9 64.1 63.1 66.0 67.4 62.9 64.6Revenue passengercarried (million) 7.098 6.363 6.069 5.927 5.992 5.525 5.654Freight includingexcess baggage 85766 82150 86317 91392 91418 80236 92135(tonnes)9.9 PHYSICAL & FINANCIALPERFORMANCE: 2003-04The company formulated its budget estimates forthe year 2003-04 on the assumption of carriage of17027 passengers per day on an average.During the period April to September, 2003, thecompany has earned a total revenue of Rs.2217.75crores and incurred total expenditure ofRs.2321.25 crores resulting in net loss (provisional)of Rs.103.50 crores which is lower byRs.190.65 crores i.e. 64.8% when compared tothe loss of Rs.294.15 crores incurred in thecorresponding period of previous year 2002-03.Similarly the net loss (Prov.) of Rs.103.50 crores islower by Rs.31.41 crores i.e. 23.3% from thebudgeted loss of Rs.134.91 crores during thisperiod. The loss is lower due to various costcontrol measures initiated by the company. Theyear is now projected to end up with an operatingprofit of Rs.12.50 crores and a net loss ofRs.56.00 crores.The estimated financial performance during theyear 2003-2004 compared to budget estimates isas follows:BudgetAnticipatedEstimatesAvailable tonne kilometers (million) 1340.334 1289.000Revenue tonne kilometers (million) 897.440 875.000Passenger load factor (%) 63.0 62.6Overall load factor (%) 67.0 67.9Passenger carried (million) 6.232 5.760Operating revenue (Rupees in crores) 4951.50 4688.80Operating expenses (Rupees in crores) 4977.00 4676.30Operating profit/(loss) (Rupees in crores) (25.50) 12.50Total revenue (Rupees in Crores) 4958.00 4695.30Total expenses (Rupees in crores) 5068.50 4751.30Net profit/(loss) (before tax) (Rupees in crores) (110.50) (56.00)Foreign exchange earnings (Rupees in crores) 1400.00 1310.0073ANNUAL REPORT 2003-2004

9.10 ANNUAL PLAN 2003-2004 – AREVIEWThe company’s annual plan for the year 2003-2004 was approved by the Government with anoutlay of Rs.280.00 crores. The company hasformulated the capital budget estimates for 2003-2004 reworking its requirement at Rs.280.00crores.It is expected that against the original budgetestimate of Rs.280 crores, the anticipated outgowill be Rs.263.76 crores (approx.). The mainreason for variation is reduction in the exchangerate and resultantly less outgo under the provisionmade for aircraft fleet.The expenditure underbuilding projects, ground support equipment,corporate computerisation and others is lower dueto economy measures undertaken whereby capitalexpenditure has been restricted to operationalrequirements only.• Details of the expenditure for the year 2003-04 (budget estimates) vis-a-vis outgo (provisional)are as under:(Rupees in crores)Budget EstimatesProvisional2003-2004 2003-2004Aircraft fleet 243.11 236.26Building projects 9.93 6.10Computer/communication 2.00 1.60Corporate computerisation 5.96 6.00Ground support equipment 12.25 9.55Including vehiclesOthers (renovation of booking 6.75 3.75office, furniture & fixture &unforeseen expenses etc.)Grant in aid to IGRUA - 0.50Total 280.00 263.76749.11 WORKSHOP BUILDINGS,OPERATIONS BUILDINGS,BOOKING OFFICES AND STAFFQUARTERSThe hangars at Chennai, Mumbai, Kolkata,engine run-up bay and blast fence at Mumbai,Avionics shop at Delhi, GSD Hangar Engine Runup Bay, blast fence and apron at Hyderabadengineering base, structural repairs and protective/waterproofing treatment of the old cantileverpre-stressed hangar at Mumbai, service complexfor GSD/engineering at Calicut airport, storesbuilding and commercially important persons(CIP) lounge at Delhi airport, have been completedand commissioned.Renovation work of CIP lounges at Mumbai,Hyderabad and Bangalore airports is underprogress.9.12 HRD INITIATIVES• Customer Service ExcellenceProgrammesProgramme developed for delivery of high levelsof customer service delivery spontaneously andMINISTRY OF CIVIL AVIATION

outinely. Programme design includes identifying,monitoring and addressing deviations inperformance from laid down standards and takingcorrective steps. The proposal is also to transferthe training expertise to internal facilitators. Atthe first instance, about 18 programmes will beheld for Northern Region frontline staff at Delhiairport.Two trial modules have been conducted andmeeting of internal resource persons, with thefaculty have been held to set performance standards.Roll out of the regular programme has commencedfrom 2 nd March, 2004. 8 three dayprogrammes are scheduled till the end of April2004.• Sales And Marketing ProgrammesSpecial week-long sales and marketing sessionsdeveloped for existing sales personnel and theArea Marketing Managers. Such programmes toinclude officers/staff at international stations, asalso employees of GSA. These programmes arebeing carried out by an outside agency. Two suchprogrammes have been held for core sales personneland five programmes for Area MarketingManagers and other sales personnel, in all coveringover 150 sales personnel. Eight more fivedaymodules will be held which would cover morethan 200 personnel. These would also includespecial programmes designed for internationalstations.• Backroom CoordinationSpecial programme has been developed forcoordination amongst non-frontline departmentsto ensure effective handling of departure andarrival activities to ensure on time performance.Pilot programme has been conducted for NorthernRegion employees in two phases betweenSeptember, 2003 and March, 2004.• Personal Grooming WorkshopsA two-day module has been developed with thehelp of an outside agency of repute for cabin crew.After testing a pilot module, 10 such moduleshave subsequently been conducted at New Delhicovering a total of about 140 cabin crew from allover India. This module will now be taken up atthe regional levels for covering all cabin crew,which includes a separate module for male cabincrew.Roll out of the regional programme has commencedwith the first programme in Delhi inMarch, 2004.• Voice Culture WorkshopsTwo pilot programmes of five days on voiceculture and announcements each have been heldat the Staff Training Institute, Prasar Bharati atDelhi. An adapted version of three days will beadministered at the regional levels. The regionalroll out commenced with the first programme atKolkata in February, 2004.• Ab-Initio TrainingIndian Airlines recruited 120 trainee cabin crewon all-India basis. They were trained in fivebatches four of which were at CTE Hyderabadand one at Chennai. The duration of trainingwas of 8 weeks. The module consisted of mandatorytechnical subjects, soft skills, cabin services,grooming/etiquette and personality development,announcements/voice culture, first aid, yoga/physical fitness etc.• Business Management WorkshopsA special ten-day programme was developed forexecutives of line departments especiallyengineers and pilots for exposing them to variousmanagement concepts on their taking overmanagerial positions tailor made with the help75ANNUAL REPORT 2003-2004

76of Amity Business School, NOIDA. Four suchprogrammes have been held in which about 56middle and senior managers have participated.• PC Familarisation TrainingIn collaboration with NIIT, Indian Airlines hasorganised a 40 hours PC familiarisation training atour premises at Safdarjung airport for employeesof headquarters and Northern Region posted atSafdarjung airport. 12 batches have completedthis training till the end of March.• Training for Stores PersonnelTwo programmes were organised for stores officersand staff on stores procedures. These programmeshad inputs from both internal andexternal faculty.• MTC programmesThe Management Training Centre Hyderabad,conducts regular training programmes.Some of the new programmes conducted by MTCin 2003-2004 are:-• Orientation programmes for:Asst Manager (IFS)Grade 9A and 10/12Asst Manager (Commercial)·• Induction training for the 23 rd batch ofManagement Trainees (Commercial)• Effective presentation skills• Personal branding• Communication IQ for managerialexcellence• Leadership development through selfawareness• Occupational health and stress management• Effective skills for strategic negotiation• Leadership for women executives• Human factors – interpersonal relationships• Seven spiritual laws for success• Leadership for transformationBesides the above, the following regular programmeswere also held• Problem solving and decision making• Business management workshops• Consultative sales training• NLP for executive development• Performance appraisal• Seven habits of highly effective people• Effective personality development• Internal audit workshop• Effective trade union managementIn all, during 2003-2004, 42 programmeswere held, which were attended by 756 participants.• MOUAs per the MOU signed with the Ministry, thebenchmark for achieving an “Excellent “ ratingunder the parameters of organisational developmentis to train a total number of 5600 employees.This figure has been achieved at the end ofFebruary, 2004 itself.9.13 SCHEDULED CASTE/TRIBEWELFARESpecial cells have been formed under the directsupervision of Liaison Officer (Corporate) atheadquarters and one each in the four regions viz.Northern, Southern, Eastern and Western.Adequate number of Scheduled Caste/Tribeemployees man these cells and are primarilyresponsible to ensure implementation of reservationorders in the organisation and also to dealwith individual grievances and representationssubmitted by Scheduled Caste/Tribe employees.Periodical meetings are held with ScheduledCaste/Tribe Associations both at the central andregional level.MINISTRY OF CIVIL AVIATION

9.15 SPORTS• HockeyS/Shri Dhanraj Pillay, Dilip Tirkey, Vikram Pillay,Arjun Halappa, Prabodh Tirkey, Mukesh Kumarand Bimal Lakra were members of the Indianteam which won the second leg of the four nationtournament in Australia. Shri A.B. Subbaiah wasnominated as the goalkeeper’s coach.S/Shri Dhanraj Pillay, Dilip Tirkey, Bimal Lakra,V.S. Vinay and Vikram Pillay were members of theIndian team which won the four nation PanasonicCup at Hamburg, Germany.S/Shri Dhanraj Pillay (Captain), Dilip Tirkey,Bimal Lakra and Vikram Pillay were members ofthe Indian team for the Champions’ Trophy atHolland.Shri A.B. Subbaiah was nominated as the goalkeeper’scoach.S/Shri Prabodh Tirkey (Captain), Girish Pimplaeand Hari Prasad were members of the junior Indiateam, which won the six nation tournament atPoland. Shri Harendra Singh was nominated asthe chief coach of the team.Shri Virendra Bahadur Singh was appointed as anumpire by the F.I.H. to officiate in the Champions’Trophy at Holland.S/Shri Dhanraj Pillay, Dilip Tirkey, Bimal Lakraand Vikram Pillay were the members of theIndian team which won the “Asia Cup” for thefirst time at Kuala Lampur. Shri S.B. Subbaiahwas nominated as the goalkeeper’s coach.S/Shri Dilip Tirkey (Captain), Bimal Lakra, ArjunHalappa, Vikram Pillay and Prabodh Tirkey weremembers of the Indian team which won theinaugural Afro Asian Games held at Hyderabad.Shri A.B. Subbaiah was nominated as the goalkeeper’scoach.ANNUAL REPORT 2003-2004Indian Airlines won the Mumbai Gold Cup andfinished runner up in the Jawaharlal NehruHockey Tournament and Lal Bahadur ShastriHockey Tournament.S/Shri Dhanraj Pillay (Captain), Girish Pimplae,Arjun Halappa, V.S. Vinay, Vikram Pillay andSandeep Singh were members of the Indian teamfor the Sultan Azlan Shah Hockey Tournament atKuala Lampur.Shri Harendra Singh was the Chief Coach and ShriA.B. Subbaiah was nominated as the GoalkeepersCoach.S/Shri Dilip Tirkey (Captain), Bimal Lakra,Vikram Pillay and Arjun Halappa were themembers of the Indian team for the pre-olympicsat Madrid and qualified for the Athens olympicsto be held in August 2004.• CricketS/Shri Harbhajan Singh and Yuvraj Singh weremembers of the Indian team for the Asia Cup atDhaka.S/Shri V.V.S. Laxman and Harbhajan Singh weremembers of the Indian touring team for the fourtest series against Australia.Indian Airlines won the Lala Hariram CricketTournament, 1 st SAARC Cricket Tournament atKathmandu, Jailal Solanki Memorial CricketTournament, All India Rani Surya Mukhi MemorialCricket Tournament, Sadbhavna Cup andSmt. Susheela Devi Cricket Tournament andfinished runner up in the Maharaj Padam SinghCricket Tournament, Buchi Babu Cricket Tournament,All India Public Sector and Shahibzada AjitSingh Cricket Tournament.• CaromShri R.M. Shankara won the SAARC caromchampionships held in Dhaka in September 2003.Shri R.M. Shankara won the U.S. open carom77

78men’s singles championships held in October2003 and he along with Mariya Irudayam alsowon the men’s doubles championships.S/Shri M. Natraj and E. Mahimairaj defeated R.M.Shankara and Maria Irudayam in the doublesfinals of the senior national carom championshipsat Goa.Shri M. Natraj won the Federation cup held inAkola.• ChessMs. S. Vijayalakshmi won the Commonwealthchess championships for women held in Mumbai.Shri G.B. Joshi won the Delhi state championshipin April 2003.Shri Rahul Shetty won the first Internationalrating chess tournament at Kathmandu.Ms. Vijayalakshmi finished runner-up in theNational ‘A championship for women at Calicutin November 2003.Shri V.S. Negi finished runner-up in the Bangkokopen chess tournament.Ms. Meenakshi won the Asian women’s chesschampionships in Dhaka and qualified for thewomen’s world chess championships to be held inGeorgia.Ms. S. Meenakshi became the sixth womenGrandmaster in India.Ms. S. Vijayalakshmi won the silver and S.Meenakshi won the bronze in the Commonwealthchampionships at Mumbai. Master ParimarjanNegi won the silver medal in the under-14category of the same tournament.Shri Tejas Bakre became the eleventh Grandmasterin India.• ShootingShri Birendeep Sodhi won the Bronze Medal inthe Asian Junior Trap Grand Prix event in theWorld cup shooting event held at Lonato, Italy.Indian Airlines participated in the 47 th Nationalshooting championship at Hyderabad in December2003 and won 19 gold, 15 silver and 15Bronze medals.9.16 ENGINEERING• DelhiSignificant achievements made by EngineeringDepartment during the year are as below:- ‘C’ check life of A-320 aircraft has beenenhanced from existing 4600 flyinghours / 3500 cycles / 18 months elapsedtime to 5000 flying hours / 3800 cycles /20.5 months elapsed time whicheveroccurs first, with the concurrence ofDGCA. This will result in lessernumber of groundings for ‘C’ checkinspections and consequential savings onexpenditure on major checks.- 5 leased A-320 aircraft (EY series) havebeen successfully inducted into IAL fleetwithout necessitating any significantaugmentation of existing infrastructurefacilities. Enhanced serviceability requirementsof A-320 fleet are being metsuccessfully by managing additionalworkload through adequate planning/provisioning.- Major check performance for A-320aircraft in the last two years shows animproved performance in 2003 asfollows:2002 2003‘A’ Check* 53 58‘C’ Check 19 20(*Data pertains to 1 st Jan – 15 th Nov period for each year)Further three ‘C” Checks were planned to beoutsourced in 2003, however, on account ofMINISTRY OF CIVIL AVIATION

improved performance in A-320 majormaintenance, only 2 aircraft were required to besent abroad for ‘C’ check in 2003.- Cockpit door reinforcement (phase II)retrofit has been completed on the entireA-320 fleet within the stipulated deadline.31 A-320 aircraft including 11leased aircraft were covered for thismodification during the period underreference.- EGPWS and SSFDR retrofit was carriedout within the stipulated time frame onthe remaining 6 aircraft alongwithgrounding for ‘C’ check. Now, thismodification stands complied with onthe entire A-320 fleet including leased A-320 aircraft.- Aircraft security modification related tocockpit door surveillance system andremote air traffic control are currentlyunder progress.- Essential service bulletins SB B 397BAM-22-012, C 5569-22-008 and C5569-22-006 were required to be compliedwith on all FAC units throughVendor’s facility, @ US$3254 per unit.As the material cost of this modificationis only US$68 per unit, the vendor wasrequested to demonstrate the procedureto us and the SB was carried out inhouseon 76 FAC units. Besides aquantum improvement in reliability andupgrading of skills, a saving ofUS$2,20,780 has been achieved in thisexercise.- Lap joint modification has been undertakenon the entire B-737 fleet. VT-EGI,the last aircraft is currently undergoingthis modification along with ‘D’ check.- A steady progress has been achieved incomputerisation of engineering functions.Software for feeding A-320 flightsector report from 6 metro stations hasbeen installed on Q.C. computer toreceive required flight informationinstantly. Computerisation of workorder opening / closing and compilationof technician man-hour data has alsobeen done. In the second phase computerisationof other PPC functions viz.repair order cycle, component tracking,loans and exchanges, scrap and salvage,An engineer carrying out inpection on Airbus A320 systems in cockpit.79ANNUAL REPORT 2003-2004

major check arising / planning etc. willbe taken up.- A-320 aircraft were made available for 11VVIP charters during this period withoutadversely affecting the scheduledoperations of flights.• Mumbai- Besides complete major maintenanceon A300 aircraft, with effect from17.11.2003 ‘A’ check of A320 aircrafthas been re-started at Mumbai. Three‘A’ checks were carried out duringNovember, 2003 as per followingdetails:Aircraft Regn. No. VT-ESE VT-EPS VT-EVQGrounding days 2 2 2Tech. Manhrs. booked 423 423 42380The norms for grounding days and man-hours are2 days and 750 hours.- Engineering services provided to outsideparties- Rs.20.80 lacs earned by Oil Test Labduring April to November, 2003.- 1610 tech man-hrs. booked on outsideparty jobs (equivalent to Rs.22.76 lacs).- Technical support to foreign airlines = 21flights/week (Oman Air = 10, Air Lanka= 5, Qatar Air = 6)- Hub & Spoke flights (Air India) = 18/weekProduct Upgradation• After every ‘C’ check, carpets are replacedwith better quality importedcarpets.• Improved quality wall papers are beingused for toilets on A300 aircraft.• For better external appearance of theaircraft, external cleaning/washing uptocabin window level is carried out duringmajor checks.• To minimise cabin defects on A320aircraft, float of items required forattending to passenger complaints withrespect to cabin defects has been increased.9.17 JET ENGINE OVERHAULCOMPLEX (JEOC)Jet engine overhaul complex is servicing P&WJT8D–9A/17/17A engine fitted on Boeing B-737aircraft and V 2500 – A1 engine fitted on AirbusA320 aircraft of IAL fleet.Till March’2004, a total of 519 engines (332-JT8D & 187-V2500) have been successfullyserviced by the Jet Shop. The capacity hasincreased from an average of 35 engines (bothJT8D + V2500) in year 1994-97 to 55 enginesnow.JEOC has acquired FAA (Federal Aviation Administration)certification of its facilities. This hasbrought JEOC at par with international enginerepair agencies.A fully air-conditioned stores building meetingDGCA and FAA requirement has been commissionedand various stores located at differentlocations in JEOC have been shifted to thiscentralised stores building.MINISTRY OF CIVIL AVIATION

An engine under repair at Jet Engine over haul Complex, Delhi9.18 COMPUTERISATIONThe Departure Control System (DCS) is nowavailable at 39 stations comprising 29 domesticand 10 international stations on the IA network.During the year 2002-03, 100% up time of IBMmain frame at the two central sites was achievedthereby ensuring the availability and reliability ofsystem access for all users.• Boarding card to have frequent flyernumber and Honourable Members ofParliament information.• Computerised check-in facility extendedto Agartala and Mangalore airports.• Computerised check-in facility through ICHost System extended for the IC handledairlines, Qatar Airway, Silk Air atHyderabad and Qatar Airway, Silk Air atThiruvananthapuram.• Through check-in facility extended to GulfAir and Qatar Airways.• Frequent flyer system to capture thefrequent flyer accrual data automaticallyfrom all the sources i.e. Indian Airlines,Alliance Air, Air India and Air Franceflights.• Online redemption and FFP award letterissuance for both Indian Airlines and AirIndia flights at Members Service Centre(MSC) outlets in India.• Dynamic system access to IC host from allMember Service Centre (MSC) outlets tocarry out various FFP functions like query,retro credit mileage point etc. All newschemes under the FFP are being incorporatedin the Frequent flyer system.• Monitoring of various promotional anddiscount fares offered on domestic sectorsby tracking on-line data from reservationand departure control systems. Thissystem is now being used for strategicdecisions like continuation of a particularpromotion scheme, modifications to thescheme, termination of scheme etc.• www.indian-airlines.com has been enhancedto store information pertaining totenders released by Indian Airlines. The81ANNUAL REPORT 2003-2004

website is also being used to disseminateinformation such as hot seat winners,written test results and advertisement ofpilot vacancies.• Computerised Public Grievances Redressand Monitoring System (PGRAMS) hasbeen implemented at IAL corporate officeto process the public grievances filledthrough the Ministry.• RAPID (Real-time Automated PassengerInformation Dissemination) systems havebeen installed at Delhi, Mumbai, Chennai,Kolkata, Bangalore and Hyderabad toquickly disseminate passenger relatedinformation.• Indian Airlines Call Centre has been madeoperational with 75 workstations connectedonline to the IC host for processingpassenger queries.9.19 PRODUCT IMPROVEMENT• Marketing Initiatives1. IA Hot SeatPeriod of offer–19 th March, 2004 to 19 th May,2004• Daily computerised “lucky draw” for allrevenue travellers on IA network.• Daily draw will pick the “HOT SEAT” i.e.a seat number of a flight and a sector.• Awardee gets four return (2 coupon)tickets which can be availed on any IAsector on the network.2. Smart Super Saver (SSS)Period of offer – 20 th January, 2004 to 20 th July,2004• Short term promotional scheme wherepassenger gets discounts on bulk advancepurchase (Relaunch of the Super SaverScheme with additional benefits).• A four/eight coupon ticket is available forexecutive/economy class, by paying a fixedamount.• The coupons can be utilised on any ofIA’s/Alliance Air’s domestic sectors withthe exception of Delhi-Trivandrum, Delhi-Kozhikode, Delhi-Coimbatore, Delhi-Cochin.Passengers earn SSS award point on each SSS ticket,which can be redeemed for free international returnticket(s) or upgrade voucher(s), both transferable.Details of the scheme are as follows:No. of Price Class of Award PointsTravelPer Ticket4 Rs.24,000/- Y 2504 Rs.32,000/- J 3508 Rs.44,000/- Y 5008 Rs.58,000/- J 700823. The Smart VoyagerPeriod of Offer 1 st Oct- 31 Dec 2003.• The scheme attempts at a synergisticpromotion between the two nationalcarriers of our country .• The short-term promotional scheme hastwo components:− Smart Voyager 1, 2 : Specifically aims atpromoting travel on IA’s 6 metros whileat the same time promoting travel on AirIndia’s international sectors as a passengerearning one free ticket on Air India,is likely to purchase the ticket for hiscompanion.– Smart Voyager 3: A lucky draw aimedat attracting all revenue passengers onMINISTRY OF CIVIL AVIATION

IA’s domestic network. The 1 st megaprize is a holiday for two in Paris with 50consolation prizes offering free returntickets on any domestic or internationalsector of IA.4. Executive Edge :Period of offer – July 24 to October 31, 2003.• Rs.80,000/- worth of J class travel : onefree domestic or international returnsector ticket.• Rs.30,000/- worth of J class : oneexecutive class upgrade voucher.5. Fortune 50 Offer :Period of offer – 01 st August to 19 th September2003• A daily lucky draw which was two freereturn tickets on any international /domestic sector of Indian Airlines .• At the end of the 50 day period, out ofall these 300 winners, a mega draw forthe grand prize of a Mercedes Benz carwas offered.6. Super Saver:Period of offer 15 th May - 31 st Oct 2003.• Short term promotional scheme wherepassenger gets discounts on bulk advancepurchase.• A four/eight coupon ticket is availablefor executive / economy class, by payinga fixed amount.• The coupons can be utilised on any ofIA’s / Alliance Air’s domestic sectors withthe exceptions of Delhi-Trivandrum,Delhi-Kozhikode, Delhi-Coimbatore,Delhi–Cochin.Details of the scheme are as follows:Number of coupons Price Class of travel4 Rs.25,000/- Y4 Rs.35,000/- J8 Rs.50,000/- Y8 Rs.65,000/- J• Marketing Initiatives – Tie-ups to offervalue for Money1. Frequent Flier Programme:Since 1994, IA and AI have run a joint frequentflier programme, flying returns• Indian Airlines has taken over themanagement of the frequent flier programmewith effect from April 2003. A new domestic FFP mileage table wasintroduced in July 2003. The mileagepoints have been computed based on theearn-burn ratio of 1:12 to 1:30. Thisflexible mileage earn-burn ratio has beenworked out to make the programmemore attractive, customer oriented anddynamic and create a preference for theIA loyalty programme over competition.A premium club called the Golden Edgeclub has been launched to provide specialbenefits, privileges and recognition tothe higher end loyal customers.Satellite offices of the member servicecentre have been opened at Delhi andMumbai airports w.e.f. 1 st July, 2003.Instant on-line redemption from 6 majormetro satellite offices and two at theairports (Delhi and Mumbai) introducedfor GEC members on IA and CD flightsw.e.f. 15 th November 2003. On AirIndia flights instant on-line redemptionw.e.f. 1 st February’04.Instant retro-credit of mileage pointsw.e.f. 15 th March’04.83ANNUAL REPORT 2003-2004

84 ‘Fly More Get More Scheme’ launchedw.e.f. 1 st January’04 to 30 th September’04.2. Indian Airlines Taj OfferPeriod of offer : Ongoing offer being extended till31 st October, 2004. Offer targets the business traveller, IA tie-up with premium hotel chain Tajgroup provides discounted overnighthotel stay.·This offer now is extended tocover 28 Taj properties. Passengers pay only Rs.1500/- orRs.2500/- as per the hotel availed. The IA-Taj offer is also available incombination with APEX fares at specialrates.3. Holiday Packages - FlyawaysPeriod of offer : Ongoing offer extended till 31 stOctober, 2004. IA has re-launched the holiday packages“IA Flyaways – Holiday Packages” tomore than 30 destinations and morethan 60 properties. The packages cover favourite touristdestinations both domestic as well asinternational (e.g. Ootacamund, Kerala,Goa, Sharjah, Yangon, Kathmandu etc.)·These packages are economically priced.On most sectors, a 3 nights/4 dayholiday in a 4-5 star hotel, includingpick-up drop, meals, sightseeing, welcomedrink are provided within the costof the air-fare only. Details of all the packages are availableon the website www.indianairlinespackages.com• Marketing Initiatives – OtherInitiatives–Ongoing1. Indian Airlines – Co-Brand Cards Indian Airlines has tied up with AmericanExpress for Co-Brand Credit Cards –The IA – Amex Gold Card and the IAAmex Silver Card. Indian Airlines has also tied-up withABN AMRO for a co-brand Debit Card. Passengers using their co-brand cards forbuying Indian Airlines tickets for self areoffered attractive discounts in both Yand J Class.The other value offers to co-brand card holdersare – free enrolment in the frequent flier programme,upgrade vouchers at the time of enrolment,excess free baggage allowance of 10 kgs.,check-in privileges etc.2. On-Line Booking / Flight Information On-line booking facility throughinternet enables passenger to make his /her own booking through the web forflights upto four days before departure ofthe flight. Bookings, flight information, informationon schemes is available through theIA website www.indian-airlines.com3. BID and FLY – On-line auction IA introduced this scheme with effectfrom December 2002. Seats are offered for auction on theinternet at discount. The on-line auction of seats on specificflights and sectors is available between 12days to 8 days (both days inclusive)before scheduled flight departure and isfor economy class only.4. Corporate House SchemeIn recognition of the fact that most corporates,because of their own pressures on margins andcosts, look for best value for money. IA offers special slab based incentivesbased on quantum of business.MINISTRY OF CIVIL AVIATION

A highlight of the new IA web page displayed on line, accessed through its address www.indianairlines.comof {HYPERLINK http://www.indian-airlines. nic.in} giving details of latest IAmarketing incentives. Corporate help desks have been set up atmetros to facilitate the corporate clients. The IA sales teams regularly service thecorporate clients. Flexi FaresThe flexi fare policy enables Indian Airlines tooffer fare variations on a sector to sector and on aseason to season basis, depending on a variety offactors including market size, seasonality, pricesensitivity and other market and service relatedfactors. With the ‘FLEXI FARE POLICY’, faresbecome market based rather than cost based andfare changes occur in response to market conditions.Passengers thus get the benefit of attractivefares and this in turn promotes domestictravel. APEX Fares- An advance purchase scheme for travelon select domestic sectors in economyclass.- Indian Airlines re-launched SMARTAPEX SCHEME in June, 2003.- The re-launched scheme covering twotier Smart APEX-7 and Smart APEX-21seeks to deliver value to the two ends ofthe air passenger segments and seeks todeliver value to the two ends of the airpassenger segments and those withluxury of time to plan in advance andthose who have but a week to plan.- With effect from 10 th March, 2004,Indian Airlines has launched an advancepurchase scheme for foreign tourists /NRIs. APEX fares in USD are availablefor sale worldwide except in India.Passengers are required to purchaseconfirmed tickets 45 days prior todeparture.- Indian Airlines had initially introducedAPEX fares, an advance purchase schemeon select domestic sectors in theeconomy class for travel between 1 st85ANNUAL REPORT 2003-2004

86August and 31 st October, 2002. Thescheme was valid till 31 st March, 2004and has been extended until furthernotice.- These fares are substantially lower thannormal fares, and are aimed at generatinga new market by encouraging surfacetraffic (primarily rail) to shift to air.- APEX fares had been introduced onselect 54 domestic sectors out of a totalof 168 sectors. These sectors for whichsuch fares have been introduced arebased on capacity, market and competitiveconditions. APEX fares had notbeen introduced, in view of these factorson 114 sectors.- The broad conditions governing thescheme are:- Tickets to be purchased at least 21 daysbefore departure. Modified to 15 daysbefore departure w.e.f. 15 th November,2002. Initially change in bookings, flight / datewere not permitted. Subsequentlypermitted till 15 days prior to the date ofdeparture, re-issuance charge of Rs.100/-or a refund fee of Rs.100/- levied, as thecase may be. Cancellation of ticket attracts 50%charge. FFP accrual points and other promotionalschemes are not permitted. Available for individual travel only,group bookings are not permitted.- Seats available under this scheme arelimited on each flight, which are monitoredso as to optimise revenue.Presently two types of APEX fares arebeing offered i.e. a D-7 day fare and a D-21 day fare, replacing the earlier D-15day fares. In order to attract the businesstraveler, 50% FFP points are offeredunder the D – 7 scheme only.9.20 CARGO PROMOTIONALACTIVITIESIndian Airlines has signed Special ProrateAgreement (Cargo) with EthiopianAirlines, Vietnam Airlines FederalExpress, Air France, Kuwait Airways andChina Southern Airlines.Cargo website – www.ia-cargo.com waslaunched on 1 st February 2004.Awareness for cargo website was donethrough advertisements in leadingnewspapers, trade magazines and GoldenJubilee issue of Swagat magazine.Flight specific promotional cargo ratesfor high, medium and low demandflights were introduced on all India basis.Re-certification of ISO 9001:2000 beingundertaken as per the revised updatedstandards.Strategic tie-ups with M/s. EuropeanCargo Services (Asia) Pte Ltd and M/s.EAS International Transportation(S’Pore) Pte Ltd on Singapore / Indiaroute were executed.Indian Airlines Cargo participated in theAir Cargo Agents Association of India(ACAAI) Conference at Dubai from 26 th– 29 th November, 2003.‘City Specific Direct Shipper’ scheme inmajor metros and non-metros wasintroduced in order to promote directsale on Indian Airlines.9.21 USE OF HINDIIn order to ensure progressive use of OfficialLanguage Hindi in official work, 57 OfficialMINISTRY OF CIVIL AVIATION

Language Implementation Committees have beenconstituted at corporate headquarters, regionalheadquarters and all stations and their OfficialLanguage Implementation Committee meetingswere held regularly. All efforts were made toachieve the targets laid down in the annualprogramme issued by the Ministry of HomeAffairs for the year 2003-04.During this period, the IInd Sub-Committee ofthe Committee of Parliament on Official Languagecarried out official language inspection ofIndian Airlines offices located at corporate headquarters,Ranchi, Srinagar, Agra, Mumbai,Kolkata and Ahmedabad and appreciated theprogress made in the field of Hindi. The Ministryof Civil Aviation also carried out inspection ofGoa, Pune, Lucknow and Jodhpur stations ofIndian Airlines. The Official Language Departmentof corporate headquarters also carried outinspection of 8 stations and 16 departments.With a view to creating a congenial atmospherefor the use of Hindi in Indian Airlines, Hindifortnight was celebrated with great zeal at allIndia level. To mark the occasion, a Hindifortnight was also celebrated at headquarters from2 nd September, 2003 to 13 th September, 2003.Dy. Managing Director gave prizes to the winnersof the various competitions organised on thisoccasion. A Rolling Rajbhasha Shield for excellentofficial language implementation in official workwas awarded to ground supports department ofheadquarters. Recruitment & promotion sectionof personnel department at headquarters was alsoawarded a special Rajbhasha Shield for issuing allnotifications in bilingual form. One employeeeach from corporate headquarters, Central TrainingEstablishment, Hyderabad base and allregions was awarded Sarvashretha VayaktigatPuruskar for doing maximum work in Hindi inday-to-day working.In order to facilitate officers/employees doing theirofficial work in Hindi, as many as 222 officers andemployees were trained in 14 Hindi workshoptraining programmes.Hindi books worth Rs.10,000 were purchased bythe corporate headquarters. Similarly, the otherregional headquarters viz. Northern, Southern,Eastern, Western region and CTE Hyderabad/basealso purchased Hindi books.Advertisements of all India nature were publishedbilingually. To mark the golden jubilee year ofIndian Airlines, all publicity material includingspecial inflight announcements were made inHindi and English. Indian Airlines aircraftdisplayed a special “50 years of flying” designpainted in Hindi and English.In-house magazine VIMANIKA has beenawarded the IInd prize from Town Official LanguageImplementation Committee (Undertaking),Delhi for excellent publication in Hindi.During the period under review Pune, Mangalore,Port Blair, Kolkata, Ahmedabad, Jodhpur,Varanasi, Gwalior and Raipur stations of IndianAirlines were awarded Rajbhasha Puruskar bytheir respective Town Official Language ImplementationCommittees.9.22 VIGILANCEDuring the year 2003-2004, Vigilance Departmentand Fraud Prevention Unit carried out anumber of important activities including streamliningthe systems & procedures, scheduled/surprise inspections, vigilance awareness/fraudprevention programme.Central Vigilance Commissioner, Shri P.Shankar, inaugurated a topic on vigilance on the87ANNUAL REPORT 2003-2004

88website of Indian Airlines. Indian Airlines hasthus become the first airline to introduce thistopic for ensuring transparency in administrationand redressing grievances of the passengers andpublic.• AchievementsObservance of Vigilance Awareness Week: Secretary,Central Vigilance Commission intimatedthat the Commission was pleased to place onrecord its appreciation of the efforts made inIndian Airlines to spread vigilance awarenessamongst its employees while observing awarenessweek.• System improvements• Intimation by employees involved inpolice case.• Continuation of inquiry proceedingsafter retirement of an employee.During the period from April 2003 to March2004, Vigilance department took up investigationof 64 complaints and completed investigation of42 complaints. As on 31.3.2004, 22 complaintswere pending for investigation. A total of 29,Departmental Enquires were pending as on1.4.2003 and during the period from April 2003to March 2004, 21 DEs were added. Out ofthese 49 DEs, 20 DEs were completed and 28were pending as on 31.3.2004.During the period from 1.4.2003 to 31.3.2004, atotal of 87 surprise checks and 14 scheduledinspections were conducted, resulting in recoveryof Rs.10,37,238/- and Bangladesh Takas 88,000/-.9.23 GROUND SUPPORTDEPARTMENTMarket Role and growthThe present ground handling business of foreignairlines in India is approx. Rs.500 crores. IndianAirlines present share of ground handling businessis approx. Rs.128 crores. Our endeavour is tomake ground handling department a dominantforce in ground handling business. At presentour competitor in ground handling are Cambataand Air India at Delhi/Mumbai and AI/HAL JointVenture at Bangalore.Ground Handling RevenueGround support department is one of the majorforeign exchange earner for Indian Airlines.Ground handling revenue of foreign airlines /other carriers increased from Rs. 38.3 crores in1994-95 to approx. Rs.128.00 crores in 2002-03.Ground support department at present providesground handling services to the following foreignairlines.Delhi Srilankan Airlines, Pakistan InternationalAirlines, UzbekistanAirways (ATQ), Kyrghyzstan, AirIndia (Hub and spoke) MalaysianAirlines, Tajikistan, ArianaKolkata British Airways, Lufthansa Cargo.Chennai Srilankan, Oman Air, LH Cargo/LH Pax, British AirwaysBangalore Singapore (Cargo Freighter),Lufthansa (Cargo Freighter)Trivandrum Oman Airways, Srilankan Airlines,Monarch, Qatar Airways,Trichy Srilankan AirlinesHyderabad Air India, Malaysian Airlines,Emirates, Silk Air, SV Haj ChartersCalicut Air India, Air India (Hub & Spoke)Mumbai Srilankan Airlines, Pakistan InternationalAirlines, Oman Air, QatarAirways, Air India (Hub & Spoke)Ahmedabad Air India, Saudi Arabian HajChartersMINISTRY OF CIVIL AVIATION

Goa Finnair, Monarch, A-2000, NovaAir, Bell Air, Condor, My traveland Air India etc.Gaya Srilankan Airlines, Silk Air Charters,Druk Air, Phuket Air*operations suspended at present.Ground Support Department also makes specialarrangements for handling of charter/VVIP flightsat important tourist destinations in India and alsoprovides ground handling services to Alliance Airthroughout the network of Indian Airlines. GSDis providing ambulift and other equipment at avery short notice at various airports visited byHon’ble Prime Minister of India.ATR Station : Ground Support Departmentscontribution in operationalising ATR aircraftproject is commendable. The equipment likeground power unit with TR units and other GSequipment was provided at eight stations ofNorth East.Apart from handling of above regular flights offoreign airlines, Indian Airlines provide handlingto number of charter/freighter/technical halfflights at the following stations:Northern Region: Delhi, Agra, Jaipur, Jodhpur,Udaipur, Varanasi, KhajurahoWestern Region: Mumbai, Ahmedabad,Aurangabad, GoaEastern Region: Kolkata, RanchiSouthern Region: Chennai, Bangalore,Hyderabad, Trivandrum &Vizag• Additional business contractsGround support department has executed newground handling contract with the following foreignairlines, as additional business, in 2003-04 :-S.No. Scheduled Airlines Location Estimated amount valueper year (INR)1 Saudi Arabian Airlines AMD/HYD 1.90 crores2 British Airways Chennai 2.00 crores• Continuing business contractsIndian Airlines has also entered into long termagreements of three year period effective 1 stOctober, 2003 to 30 th September, 2006 with theseasonal charter parties operating their flightsevery year to Goa airport starting October toMarch.9.24 MEDICALDuring the period of outbreak of SARS in some ofthe South East Asian countries, the medicaldepartment played an important role in educatingour crew/commercial staff to take care of SARSsuspects and also advised engineering departmentabout disinfection of the aircraft by means offumigation.ANNUAL REPORT 2003-2004In August 2003, during the outbreak of Eye-Fluconjunctivitis, medical department issued healthbulletin to educate the staff and also issuedguidelines for crew and commercial staff dealingwith passengers suffering from conjunctivitis.In October, 2003, when there was an outbreak ofdengue fever Medical Dept. issued notice/guidelinesto inform about the preventive measures onthis disease.In an international conference organised by IndianSociety of Aerospace Medicine Indian Airlines wasawarded corporate membership. Dr. A.K. Dewan,General Manager (Medical) chaired a scientificsession in the above conference.Indian Airlines received the best ‘Civil PaperAward’ in 44 th annual ISAM conference.89

Six doctors from Indian Airlines were nominatedto attend a training programme on “Aviationmedicine for civil doctors” organised by Instituteof Aerospace Medicine, Indian Airforce,Bangalore.9.25 AIRLINE ALLIED SERVICESLIMITEDIndian Airlines had set up a wholly owned publiclimited company in 1983 known as Airline AlliedServices Limited (AASL). The objectives of thecompany as enumerated in the Memorandum andArticles of Association envisaged providingsupport services to the core activities of IndianAirlines for e.g. setting up of hotels, flight kitchenetc. In the year 1988 Memorandum and Articleof Association of AASL were amended to includethe following mandate:-• To establish, maintain operate internationaland domestic air transport services,scheduled and non-scheduled, forthe carriage of passengers, mail andfreight and for any other purpose.• To buy, sell, hire, let on hire and deal inaeroplanes, flying machines, aircraft andthe component parts and all kinds ofmachinery and appliances for use inconnection therewith.Airline Allied Services Limited started airlineoperations with B-737 aircraft under the brandname of ‘Alliance Air’. The company commencedits operations effective 15 th April 1996.Alliance Air is at present, operating services to 41stations with 11 B-737 aircraft taken on leasefrom Indian Airlines. There is a completesynergy and cooperation between Indian Airlinesand Alliance Air operations such as engineering,ground handling, marketing, ticketing facilitiesetc.• Physical Performance of Alliance AirThe physical & financial performance of AllianceAir during the years 2000-2001, 2001-02 andupto September in the years 2001-02 and 2002-03 is as under:PARTICULARS 2001-02 2002-03 Apr- Sept. Apr-Sept.2002 2003Available tonne kms.(million) 177.77 169.91 85.03 85.52Revenue tonne kms.(million) 107.67 101.81 49.21 51.7Available seat kms.(million) 1842.60 1791.18 902.76 924.65Revenue passenger kms. (million) 1529.12 1058.39 510.59 532.27Load factor % 60.30 59.92 57.87 60.46Seat factor % 61.20 59.09 56.56 57.56Number of passengers(million) 1.529 1.419 0.682 0.733Effective fleet during the year 11 12.19 11 1590MINISTRY OF CIVIL AVIATION

• Financial Performance of Alliance AirRupees in crores2001-02 2002-03 Apr-Sept. Apr-Sept.2002 2003Operating revenue 503.52 500.05 232.92 295.88Operating expenses 560.18 592.34 282.98 332.51Operating profit/(loss) (56.66) (92.29) (50.06) (36.64)Prior period items (0.31) - - -Non-operating revenue - 7.29 - -Non-operating expenses - - - -Profit/(loss) before tax (56.97) (85.00) (50.06) (36.64)Profit/(loss)after tax (56.97) (85.00) (50.06) (36.64)• ATR – Operations to North EastAlliance Air has taken on lease 4 ATR-42-320aircraft for dedicated operations in the NorthEastern Region.These aircraft will be deployed exclusively in theNorth East for a period of 5 years on dry leasebasis. The lease period commenced from December,2002.During the lease period, the total expenditureestimated is Rs.417.35 crores.The estimated revenue is Rs.227.21 crores,resulting in a deficit of Rs.190.14 crores.The leased aircraft are to be operated in the NorthEastern region on the basis of agreed budgetarygrant of Rs.35 crores per annum i.e. Rs.175 croresduring the five-year period, to be contributed byDepartment for Development of North EasternRegion. The deficit, if any, will be met byAlliance Air / Indian Airlines with increase in faresand other concessions expected from the Governmentlike reduction of ATF prices, lowering ofairport charges, including savings from landingand navigation charges etc. in the North East.*****91ANNUAL REPORT 2003-2004

Pawan Hans Helicopters10Limited9210.1 INTRODUCTIONPawan Hans Helicopters Limited was incorporatedin October, 1985 (under the name of‘Helicopter Corporation of India Limited’) as aGovernment company under the Companies Act,1956. The corporation commenced its operationswithin one year of its formation with the primaryobjective of providing helicopter support servicesto the oil sector in offshore exploration, operate inhilly and inaccessible areas and make availablecharter flights for promotion of travel and tourism.Pawan Hans is the first aviation company in Indiato get ISO 9002-2000 Certification for its entiregamut of activities.10.2 ORGANISATION AND CAPITALSTRUCTUREPawan Hans is headed by Chairman & ManagingDirector, who is also the Chief Executive. Theregistered office of the company is located at NewDelhi and its regional offices are at Mumbai andNew Delhi. It has a team of dedicated highlymotivated and skilled manpower which includespilots, engineers, executives and support staff.The company’s authorised capital is Rs.120.00crores. Against this, the present paid up capital isRs.113.76 crores. Out of the present subscribedcapital of Rs.113.76 crores, Rs.89.26 crores is heldin the name of President of India and Rs.24.50crores in the name of Oil & Natural Gas CorporationLimited.10.3 FLEET STRENGTHPHHL has emerged as one of Asia’s largesthelicopter operator having a well balanced operationalfleet of 30 helicopters consisting of 18 SA-365N Dauphin, 2 Dauphin AS-365N3, 3 Bell206 L4, 2 Bell 407, 2 Robinson R-44 and 3 MI-172 helicopters.10.4 OPERATIONSThe company achieved flying of 3,20,000 hoursand 11,50,000 landings on its fleet since itsformation. The company achieved a total revenueflying task of 18506, 20,173 and 22,780 hoursduring the financial years 2001-02, 2002-03 and2003-04 respectively.• PHHL generates over 60% of it’s revenuefrom ONGC at Mumbai and otherlocations for transportation of its men &material.MINISTRY OF CIVIL AVIATION

• PHHL operates to 35 Rigs (motherplatforms and drilling rigs) and 100production platforms (wells) within aradius of 130 nm. from the main land atMumbai.• 8 Dauphins operate daily from Mumbaicarrying out 17-20 sorties with amonthly utilization of 800 hours. Inaddition, 2 Dauphin operates from otherlocations of ONGC as well. One Mi-172 is also flying on contract withONGC.• 30 landings daily per helicopter duringproduction sorties. 250 men are carriedto various ONGC off-shore locationsevery day.• 2 Dauphins are stationed overnight atthe main platforms in addition to adedicated Night Ambulance to meet anyemergency evacuation.10.5 DEPLOYMENT OF THEHELICOPTER FLEETThe company operates ten Dauphins and one MI-172 helicopter on contract basis to ONGC forcarrying its men and vital supplies round the clockto drilling rigs situated in Bombay off-shoreplatforms.In addition, PHHL provides helicopter supportservices to several State Governments namelyArunachal Pradesh, Punjab, Meghalaya, Tripura,Sikkim, Lakshadweep, Andmans & Nicobar. It isalso providing helicopter services to some PSUslike Oil India, NHPC and GAIL, Ministry ofHome Affairs (MHA), Guwahati and Hardy.Pawan Hans started inter-island helicopterservices by a Dauphin helicopter in Andman &Nicobar Islands since March 2003. On an experimentalbasis, PHHL had run the helicopterservices from Augustmuni to the holy shrine ofKedarnath in May-June and September-October,2003.Pawan Hans also provides maintenance & operationssupport for one Bell 206L4 of a privatecompany, a Dauphin AS-365N3 helicopter ofGovernment of Karnataka and a Robinson R-44helicopter of a religious organisation at Delhi.10.6 HELICOPTER SERVICE IN THENORTH EASTERN REGION• Arunachal PradeshPHHL has provided a Dauphin helicopterSA365N to Government of Arunachal Pradeshfrom December 1995 which is being utilised bythe State Government for services connectingItanagar with Guwahati, Mohanbari, Pasighat,Roing, Tezu, Ziro, Namsai, Along, Yingklong,Roing, Miao, Changlang, Daporijo etc. In additionone MI-172 helicopter has been deployedfrom August 2002 for ferrying passengers andcarrying cargo (air maintenance).• MeghalayaPHHL has leased one Dauphin helicopter on wetlease to the Government of Meghalaya w.e.f. 15 thFebruary 1999. The State Government has beenoperating daily passenger flights on theGuwahati-Shillong-Tura sector and other sectorswithin the State.• SikkimPHHL has provided a 5-seater Bell helicopter onwet lease to the Government of Sikkim since 31 stOctober 1998. The State Government has beenoperating daily passenger/tourist flights onGangtok-Bagdogra-Gangtok sector (6 days in aweek) and other flights (joy ride to Kanchanjunga)for carrying tourists.93ANNUAL REPORT 2003-2004

• Ministry of Home AffairsMHA has been utilising PHHL’s Dauphin helicoptersince 1996 every year. The helicopter isbased at Guwahati and being utilised for transportationof ministers and senior officers of theCentral Government to important centres in theNorth East.• TripuraPHHL has provided a Bell 407 helicopter on wetlease to the Government of Tripura w.e.f. 25 thSeptember 2002. The State Government hasbeen utilising this helicopter for regular passengerservices within the State.• NHPCPHHL has provided a 5 seater Bell helicopter toNHPC w.e.f. 27 th October 2000. The helicopter isbased at Itanagar, Arunachal Pradesh and isbeing utilised by them to meet their ownrequirements.• Oil India Ltd.PHHL has provided a 3 seater Robinson R-44helicopter to Oil India Ltd. w.e.f. 10 th May 1994.The helicopter is based at Guwahati, Assam and isbeing utilised by them to meet their own requirements.10.7 FINANCIAL PERFORMANCEThe financial performance during 1996-97, 1997-98, 1998-99, 1999-2000, 2000-2001, 2001-2002, 2002-03 and 2003-04 is as under:-(Rupees in crores)Particulars 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04(Prov.)A) Revenue estimates 185.87 157.37 178.54 175.85 191.96 195.86 205.02 215.2594B) Expenditure estimatesi) Operating & non- 114.88 100.32 106.19 99.38 129.17 115.59 131.33 148.25operating expensesii) Depreciation &obsolescence 7.08 5.65 7.78 7.44 9.98 11.06 14.21 16.78reserve 121.96 105.97 113.97 106.82 139.15 126.65 145.54 165.03C) Profit before priorperiod/extraordinaryadjustments 63.91 51.40 64.57 69.03 52.81 69.21 59.48 50.22D) Prior period/extraordinaryadjustments ( 8.53) 24.09 22.48 38.16 22.19 22.25 4.20 11.35E) Interest on GOI duesincluding arrears ofearlier years. - - - (288.33) (11.69) - (39.31) -F) Profit/(loss) afteradjustments 55.38 75.49 87.05 (181.12) 63.31 91.46 24.37 61.57G) Provision for incometax 9.25 13.75 15.00 42.50 25.30 32.15 8.98 20.00H) Net profit/(loss)after tax 46.13 61.74 72.05 (223.62) 38.01 59.31 15.39 41.57I) Dividend (paid/payable) 9.39 12.51 14.79 10.52 11.38 13.65 13.65 Not yetdecidedMINISTRY OF CIVIL AVIATION

Bell helicopter flying in North EastPawan Hans has been appointed as an approvedMaintenance Centre to carry out services onDauphin series helicopters and is part of theEurocopter’s network of authorised maintenancecentres world wide.To meet the acute shortage of residential accommodationin Mumbai, the company has constructed242 flats out of which 50 flats have beenallocated to Airports Authority of India on landacquired from them on lease.10.8 FUTURE PLANS• Pawan Hans is making efforts to ventureinto the area of hotline washing of transmissionlines by helicopters in collaborationwith Power Grid Corporation.• Pawan Hans has signed an agreement withM/s. Eurocopter for purchase of 2 newDauphin AS 365N3 helicopters in August,2003. With this acquisition the total fleetstrength would be enhanced to 32 helicopters.Pawan Hans has in October 2003floated a tender for acquisition of one lightand two medium helicopters.• An agreement has been signed with TataConsultancy Services for development of acrucial integrated software solution at a costof Rs.1.50 crores. that would cater to thecore functional areas viz. Flight Data andScheduling, Component Health Monitoring& Maintenance, Material Management andFinancial Accounting.10.9 STEPS TAKEN TO IMPROVEPUBLIC GRIEVANCE REDRESSALMACHINERYPawan Hans does not have direct services for thegeneral public and is dealing mainly in long termcontract with selected customers like ONGC, OilIndia Ltd. State Governments and PSUs etc.Therefore, complaints received are minimal andare being dealt with promptly within the stipulatedtime. Pawan Hans has a prescribed publicgrievance procedure including PGRAM to settleany public grievance. Further there exists a PublicGrievance Redressal Machinery dealing with thecomplaints by Director at Corporate Office andGrievance Officer at Regions.95ANNUAL REPORT 2003-2004

10.10 IMPLEMENTATION OF POLICYSTATEMENT FOR ABATEMENTOF POLLUTION.Pawan Hans is endeavouring to maintain apollution free environment and has been plantingtrees around its office premises in Delhi andMumbai.10.11 VIGILANCEThe Vigilance Department is headed by the ChiefVigilance Officer. The thrust of the activities ofthe Department are on preventive vigilancewhereby the employees are made aware of theextant rules and procedures of the Company andare motivated to abide by them. The rulesthemselves are also scrutinised in order to fill upthe gaps where rules are either non-existent or areantedated or are considered to be inadequate todeal with a give situation. Instructions are issuedfrom time to time for better documentation andfiling procedures, and proper upkeep of records.Identification of and plugging the sources ofpilferage, if any, is an on-going exercise. Theemphasis is on regular inspections and greaterinterface with the staff so as to streamline functioningand enlighten the staff about the seriousconsequences of adoption of shortcut methods anddeviation from established procedures. Periodiccounselling of the staff regarding greater transparencyin their decision making, is an importantactivity of the Vigilance Department that isexpected to bring about an attitudinal change forthe betterment and to improve the work cultureand discipline in the company.10.12 USE OF OFFICIALLANGUAGEMore than 80% of officers and staff memberspossess a working knowledge of Hindi and as faras possible most of them do their official work inHindi. Hindi dictionaries and other help literaturehave been provided to officers and staff tofacilitate their working in Hindi. All documentscovered under section 3(3) of the Official LanguagesAct were issued bilingually i.e. both inHindi and English. Provisions of Rule 5 of theOfficial Languages Rules were also complied with.10.13 EFFORTS TOWARDSACHIEVING EXCELLANCEThe operating and maintenance standards ofPawan Hans are one of the highest in the world.All aircrew must pass proficiency tests every sixmonths. Maintenance crew undergo regularrefresher courses. Meticulous maintenance checkson helicopters are carried out and extensiveworkshops with in-house facilities provide theback up. Maintenance capability has been upgradedto carry out major ‘G’ Inspections(airframe overhaul) totally in-house, without anyforeign assistance.PHHL has laid a strong foundation in terms oftrained manpower and excellent safety standards.The company looks forward to a bright future.****96MINISTRY OF CIVIL AVIATION

Hotel Corporation ofIndia1111.1 INTRODUCTIONHotel Corporation of India Limited is a PublicLimited Company wholly owned by Air IndiaLimited and was incorporated on July 8, 1971under the Companies Act 1956, when Air Indiadecided to enter the hotel Industry in keepingwith the prevalent trend among world airlines.The objective was to offer to the passengers abetter product, both at the international airportsand at other places of tourist interest, thereby alsoincreasing tourism of India.11.2 SALE OF REMAINING UNITSFor sale of Centaur Hotel, Delhi Airport (includingChefair Flight Catering Delhi), and ChefairFlight Catering Mumbai, Government re-initiatedthe process of disinvestment to which 46 partiesresponded; 39 were shortlisted who fulfilled thecriteria and, thereafter, Earnest Money Deposit(EMD) of Rs.100 lakhs for the hotel and Rs.5lakhs for the Flight Kitchen were called. Finally20 parties submitted the Earnest Money Depositand signed the Confidentiality Agreement. Forthe due diligence, 2 Data rooms, one each atDelhi and Mumbai, were set up and QualifiedInterested Parties(QIPs) accessed the Data Roomsin April/May,2004. The QIPs have interacted withthe management and had site inspections of theproperties. Among the QIPs, five have sincewithdrawn their interest and EMDs of four ofthem have been refunded. Finally 17 parties havebeen left out. Draft Transaction Document, dulycompiled by the Global Advisors, is ready to beconsidered by the IMG for its approval11.3 FINANCIAL RESULTS(Rs. In crores)Particulars Actuals 2001-02 Actuals 2002-03 Unaudited 2003-04Operating revenue 77.95 51.77 39.93Total expenditure 105.90* 63.02 44.90Operating profit/(loss) (27.95) (11.25) (4.97)Extra-ord.exp(VRS-378 employees) - 11.21 3.00Interest 4.95 0.73 1.80Depreciation 3.63 1.90 1.55Prior period adjustments 0.30 (1.60) -Net profit/(loss) (36.83) (23.50) (11.32)Net sale proceeds of units 3.91 197.38 -Net profit/(loss) before tax (32.92) 173.88 (11.32)* Wage revision arrears Rs.CroresANNUAL REPORT 2003-200497

11.4 DISPOSAL OF CENTAUR LAKEVIEW HOTEL, SRINAGAR.Centaur Lake View Hotel is a 252 room 5 starhotel located on the bank of Dal lake, Srinagar.There is a proposal for transferring the ownershipof this property to the Government of Jammu &Kashmir. A Committee of Central and StateGovernment officials have been set up to addressthe core issues involved in taking over of thehotel. The core issues have been identified, theassets evaluated by the Asset Valuers and submittedto the State Government for their views. TheState Government is examining the issues involved.****98MINISTRY OF CIVIL AVIATION

Women Welfare1212.1 INTRODUCTIONIn accordance with the instructions of the Departmentof Women and Child Development, a cellheaded by a lady Deputy Secretary as NodalOfficer, is in existence in the Ministry of CivilAviation, for overseeing the work relating towomen’s welfare and for taking suitable measuresto provide convenient and hassle free workenvironment to the women members of the staff.Further, as per the guidelines of the Hon’bleSupreme Court of India, a complaint committeeheaded by the same lady officer has also beenconstituted to examine complaints relating tosexual harassment of women at work places andto suggest remedial measures to prevent suchharassment. All the organisations under theMinistry have also set up similar cells and complaintscommittees to look after matters relatingto women welfare and to look into complaintsrelating to sexual harassment of women employees.Instructions received from Department ofWomen and Child Development, NationalCommission for Women etc. from time to time,are circulated to all organisations under thisMinistry, for necessary implementation. Theposition of women’s welfare/ cases of sexualharassment in the Ministry and its organisations isbeing monitored periodically and necessary actionis taken wherever called for.12.2 DIRECTORATE GENERAL OFCIVIL AVIATIONIn the DGCA, Women’s Cell has been constitutedin order to identify the issues relating to Women’swelfare. It is headed by a senior lady employee asConvener. Its meetings are conducted everyquarter to resolve the grievances of lady employees.In compliance with the guidelines ofHon’ble Supreme Court, a ‘one person cell’ hasbeen constituted to deal with the cases of sexualharassment in the office.12.3 BUREAU OF CIVIL AVIATIONSECURITYA separate common room has been earmarked forwomen for attending to their needs duringmedical emergency and for rest. Problems of thewomen employees, if any reported, are promptlyattended to and resolved amicably, keeping inview the policy of the government in this regard.As a part of modernisation of work procedures, 99ANNUAL REPORT 2003-2004

women employees of the Bureau are also beingimparted training on computers and in usingvarious other modern office equipments.12.4 COMMISSION OF RAILWAYSAFETYOffices of the Commission are generally located inRailway Office Complexes and the facilitiesprovided therein such as toilets, creche, tiffinroom etc. are availed by the female employees ofthe Commission also. The women employees alsoparticipate and hold office in Mahila Samiti, thewomen’s welfare organisation of railways. Theinstructions on welfare of women employees,issued by Government of India from time totime are being implemented.12.5 AIRPORTS AUTHORITY OF INDIAKalyanmayee is the Women Welfare Associationof Airports Authority of India. This is a welfarebody consisting of women working in AirportsAuthority of India and the wives of those workingin it. Its aim and objectives are to carry outactivities in social, cultural and educational fieldsfor the benefit of members and their families.Kalyanmayee units are spread over the entirecountry including far-flung areas and have over1500 life members. Kalyanmayee undertakesvarious activities to promote and inculcate thefeeling of harmony and belongingness within theorganisation. It also carries out charitable, socialand upliftment work for the less privileged in thesociety. Apart from Kalyanmayee, a committeehas also been constituted in Airports Authority ofIndia to redress the grievances relating to sexualharassment at work place.12.6 AIR INDIA LIMITEDIn Air India Ltd., 1612 women are working underworkmen category and 1013 women in officerscategory. There is a Women Cell in WelfareSection of HRD Department where womenemployees of both the categories can represent ifthey have any grievance regarding any sexualharassment. Further, Air India Management interms of Hon’ble Supreme Court Judgment incase of Visakha Vs. State of Rajasthan, has alreadyconstituted a Committee for prevention of sexualharassment, which is headed by senior womenexecutive of the company. Committees have alsobeen formed at the Departmental level to lookinto such grievances/complaints. Air India hasmade suitable amendments to the Air IndiaEmployees’ Service Regulations as well as to theCertified Standing Orders by including sexualharassment as one of the misconducts. Air Indianominates its women employees to varioustraining programmes/seminars and conventionsboth in India as well as abroad. It has also nominatedsocial service volunteers in Medical ServicesDepartment to counsel the women employees ontheir individual problems. Currently, a ladyspecialist social worker carries out these activities.The Medical Services Department also organiseslectures for women staff on issues related tohealth. Women employees are encouraged to takeactive part in various organisational, cultural,sports and educational activities and are recognisedwith awards and momentos for excellence.Air India management has also removed the agebar for flying duties to Air Hostesses. Now, AirHostesses are being allowed to fly up-to the age of58 years. Further, the designation of Air100MINISTRY OF CIVIL AVIATION

Hostesses has been changed to Cabin Crew, whichincludes male counterparts.12.7 INDIAN AIRLINES LIMITEDIndian Airlines is amongst the very few organisationsin the world to employ women in highlyskilled vocations such as flying and maintenanceof aircraft. It is the first scheduled airline in theworld to enroll a woman pilot (Durba Banerjee) inAugust 1966, who later became the first womanpilot on the wide-bodied Airbus-300. IndianAirlines created world history by operating aflight with all women crew in January 1986 withSaudamini Deshmukh commanding an F-27flight from Kolkata to Silchar and back. IndianAirlines has as many as 31 women pilots, of which3 are executive pilots. There are 9 womenAircraft Engineers and 30 Aircraft Technicians.As per the guidelines issued by the NationalCommission for Women, Indian Airlines hasformed Women Cells at headquarters and in eachof the four regions to follow up developmentactivities for women. These cells are functioningeffectively. In pursuance of the orders of theHon’ble Supreme Court in the case of Visakha andOthers Vs. State of Rajasthan, separate cells tolook into the complaints regarding sexual harassmenthave also been formed at the headquartersand in all the regions. The two sets of StandingOrders concerning Discipline & Appeals havebeen amended to include sexual harassment in thelist of misconduct. Women constitute approximately15.6% of the total workforce in the airline.12.8 PAWAN HANS HELICOPTERSLIMITEDWomen Cells have been set up separately in alloffices of the company. Pawan Hans has beenmaking consistent efforts to promote all rounddevelopment and ensure provision of all essentialamenities for the women employees. The companyhas also been sponsoring women employeesfor in-house training as well as to outside specialisedinstitutions for their skill upgradation.12.9 HOTEL CORPORATION OF INDIAA women’s Cell has been constituted at the headoffice of the company, which looks into the issuesconcerning women’s welfare.12.10 INDIRA GANDHI RASHTRIYAURAN AKADEMIIGRUA has three women employees and theirwelfare is being looked after through normaladministrative channels.*****101ANNUAL REPORT 2003-2004