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The document discusses various topics related to airports and airlines in India: 1. It defines key terms like market potential, airport planning, landside facilities, formal and informal organizations, and the roles of organizations like AAI and DGCA. 2. It discusses privatization of airlines and provides names and mottos of major airports in Delhi, Mumbai, Hyderabad, and Bangalore. 3. It covers concepts like break-even point, facilities required at airport landside, reasons for organizational failure impacting airlines, Indian airport services, and airport development fees. 4. The roles of airlines in India's development and the importance of slot allotment are described.

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53 views

P RT: A

The document discusses various topics related to airports and airlines in India: 1. It defines key terms like market potential, airport planning, landside facilities, formal and informal organizations, and the roles of organizations like AAI and DGCA. 2. It discusses privatization of airlines and provides names and mottos of major airports in Delhi, Mumbai, Hyderabad, and Bangalore. 3. It covers concepts like break-even point, facilities required at airport landside, reasons for organizational failure impacting airlines, Indian airport services, and airport development fees. 4. The roles of airlines in India's development and the importance of slot allotment are described.

Uploaded by

Sachin
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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PART : A

1. Define Market Potential.


Market potential is the entire size of the market for a product at a specific time.
It represents the upper limits of the market for a product. Market potential is
usually measured either by sales value or sales volume.

2. Define Airport Planning.


Airport planning is a systematic process used to establish guidelines for the
efficient development of. airports that is consistent with local, state and national
goals. A key objective of airport planning is to. assure the effective use
of airport resources in order to satisfy aviation demand in a financially feasible.

3. What do you understand by airport landside?


The landside area is open to the public, while access to the airside area is tightly
controlled.

4. Define Formal and Informal organization.


Formal Organization is an organisation in which job of each member is clearly
defined, whose authority, responsibility and accountability are fixed. Informal
Organization is formed within the formal organisation as a network of
interpersonal relationship when people interact with each other.

5. What is AAI?
The Airports Authority of India or AAI is a statutory body working under the
Ministry of Civil Aviation, Government of India is responsible for creating,
upgrading, maintaining and managing civil aviation infrastructure in India.

6. Meaning of Airline Privatization.


Privatisation through the sale of shares (often a minority stake) to a strategic
partner additionally brings access to private sector management skills. The
strategic partner is typically another airline and often also brings a commercial
partnership.

7. What is the name and motto of Delhi, Mumbai, Hyderabad and Bangalore
Airport?
Indira Gandhi International Airport serves as the major international aviation hub
of the Indian capital city of New Delhi as well as India.
Chhatrapati Shivaji Maharaj International Airport, Mumbai, formerly known
as Sahar International Airport, is the primary international airport serving
the Mumbai Metropolitan Area, India. It is the second busiest airport in the
country.
Rajiv Gandhi International Airport is an international airport that serves
Hyderabad, the capital of the Indian state of Telangana. 
Kempegowda International Airport. Kempegowda International Airport  is an
international airport serving Bangalore, the capital of the Indian state of
Karnataka.

8. What does DGCA stands for?

Directorate General of Civil Aviation (DGCA)

PART: B

1. Explain the meaning of Break- even point.

The break even point is the production level where total revenues equals total
expenses. In other words, the break-even point is where a company produces the
same amount of revenues as expenses either during a manufacturing process or
an accounting period. Since revenues equal expenses, the net income for the
period will be zero.
The company didn’t lose any money during the period, but it also didn’t gain any
money either. It simply broke even.

2. Name the facilities required at Airport land side.


The facilities required at airport land sides are:
Public transport stations, Access road, parking lots, loading and unloading
facilities, passenger arrival, departure and transit terminal and cargo terminals,
Central security control, restaurants, bar, shopping centres, duty free shops,
officers power generation and supply utilities building and terminal services
(electric heating ventilation and air conditioning stay sanitary data and
communication network), terminal manager, real estate management, facility
management, handling agent services and station management.

3. Explain why failure of organization leads to failure of an airline?


Failure of organisation leads to failure of an airline due to poor leadership and
management, which results in a company with high potential to sync due to its
inability to adopt its business with external environment and change the business
culture to start the demand.
Poor vision followed by wrong decision led to the company collapsing. The fact
that they were ill equipped to manage this crisis results in its employees lower
payment.

4. Explain the various Indian Airport services?


Airport station aerodrome with extended facilities, mostly for commercial air
transport. airport often have facilities to store and maintain aircraft, and control
tower. In airport consists of landing area, which comprises and aerial assessable
open space including at least one operational active surface such as a runway for
a plane to takeoff or helipad, and often includes adjacent utility building such as
control towers, hangars and terminals. Largest airports may have airport aprons,
taxi weighbridges, Air traffic control centres, passengers facilities.

5. Explain the Airport Development Fees.


Airport development fees also known as airport improvement fee or service fee
or service charge air airport tax is an additional fee charged to departing for
connecting passenger. Airports uses this feet to find projects that enhance safety,
security or capacity or to reduce noise etc. it is levied by government or an
airport management corporation and the proceeds are usually intended for
funding of major airport improvements for expansion of airport services.
Depending on the location of the airport development fee is included in the cost
of airline tickets per month in which is the airline will forget the fee to proper
agency. However, in some location the fees must be paid at the point of
embarkation.
This often creates difficulties for departing passenger who are an familiar with
this type of procedure or for international passengers who have already changed
their local currency.

6. What is the important of slot allotment to Airlines?


An increase in air traffic at major airports has led to congestion, especially those
in the metros. To ensure the most efficient use of airport infrastructure and
maximize benefits to travellers, it is essential to have a policy for ideal allocation
of the limited capacity at airports to airlines. A transparent and equitable
mechanism is needed for viable and smooth operations at the airports. Slot
allocation should be considered an interim measure till a longer-term solution of
expanding airport capacity is implemented, according to the guidelines of the civil
aviation ministry.

7. Explain the role of airlines in development of India.


India had the world's third-largest civil aviation market in 2017, with the number
of passengers growing at an average annual rate of 16.3% between 2000 and
2015.[7] It recorded an air traffic of 131 million passengers in 2016. Despite this
growth, much of the country's aviation potential remains untapped. IndiGo, Air
India, SpiceJet and GoAir are the major carriers in order of their market share.
[11]
 These airlines connect more than 80 cities across India, and are joined by
several foreign airlines in providing international routes.

PART: C

1. Carry out SWOT analysis of Air India and Discuss the market potential of the
airline.
Strengths in the SWOT analysis of Air India
-Air India has been the largest air carrier in India in terms of traffic volume and
company assets.
-It owns the most updated fleet and competent repairs and maintenance
expertise.
-Its information systems are advanced and compatible with its operation and
service.
-It has a good reputation in both international and domestic markets, quality
service and the age-old Goodwill that has still kept it alive in the interests of the
rescue operators.
-Has financial backing of the Government

Weaknesses in the SWOT analysis of Air India

-Lack of clarity on the strategic direction largely dilutes its capabilities and
confuses its brand within markets.
-Low profitability and utilization of capacity.
-Growing Competitor base and entry of Low-Cost Carriers (LCC’s)
-The airline’s high-cost structure and the compulsions of being a public sector
unit are the reasons and it had been making a loss and shall continue to make
losses for some more quarters.

Opportunities in the SWOT analysis of Air India

-India airline industry is growing faster and will continue to grow as the GDP
increases, and the trend is predicted to continue once the slowdown recedes.
-Worldwide deregulations make the skies more accessible; the route agreement
is easier to be achieved. The number of foreign visitors and investors to India is
increasing rapidly.
-Complementary industry like tourism will increase demand for airline service.
The Civil Aviation Ministry’s strong regulation and protection provides
opportunities for consolidation and optimization.
-Customers are getting wealthier, tend to be less price-conscious and prefer to
choose quality service over cost.
-Best time for introducing LCC’s

Threats in the SWOT analysis of Air India


-Air India faces imminent aggressive competition from world leading airlines and
price wars triggered by domestic players.
-The Indian Railway Ministry has dramatically improved speed and services in
their medium/long distant routes, attracting passengers away from air service,
with prices almost at par with the low cost carriers

2. What are the various steps taken to plan a green field Airport?
The central government has notified the policy for Greenfield airports. Various
steps taken to plan Greenfield airports are:-
i) Institutional structure
ii) Applicability
iii) Site clearance granted by steering committee.
iv) Guidelines
v) Grant of license by DGCA
vi) Timeline for approval in appraisal process
vii) Monitoring

3. How is decision making carried out in a Formal Organization?


Decisions are made by having an unstructured discussion until consensus is
reached.
Being formal merely means that organisation has a written set of rules about how
these decisions are made, and duties of officers and conditions of membership
are clearly defined.

4. Analyze the reasons for failure of King Fisher?


Lack of management:-
The company not even thought of making Mr. Gopinath (ex founder of Air
Deccan) SCO of the Kingfisher airline to bring the company into a profitable
expertise and expenses in the airline industry, lack of management cause the
downfall of Kingfisher airline.

Operation reasons for failure:-


i) Maintenance, landing in navigation cost
ii) High overhead cost
iii) High cost of VAS
Main financial challenges:-
1) Bank dues
2) Fuel dues
3) Delayed salary
4) Airport rental dues
5) Airport dues

5. What is the Organizational Structure of AAI?

6. Why has Govt. of India transferred the major Indian Airports to private operators
from Indian Air Force and AAI? Explain in detail?
Airports in India are inadequate for handling this increase in traffic. The Naresh
Chandra committee report identifies a number of loopholes in the current system
and suggests improvement.
Government decided to private airport in order to include efficiency and avoid
the burden of investing in the same. This is in line with word tents where airport
are being seen more as business then infrastructure providers.
Privatization of airport food affect their business models to stop airport have two
kinds of revenue streams aeronautical and non aeronautical. International airport
stand to have a larger percentage contribution of non-aeronautical revenues
whereas AAI still lags in this regard.
The govt. has recognise this and the Greenfield airport at Bangalore and
Hyderabad MP provided plenty of real state to develop non-aeronautical
revenue.
7. What are the steps already taken in Tendering Process of Navi Mumbai?
Tendering process is to invite bids for a project, or to accept a formal office such
as at takeover bid. Tender usually refers to the process whereby government
invites bids for large project that must be submitted within a finite deadline.
Tendering is the process of making an offer bed or proposal for expressing
interest in response to an invitation or request for tender. Organisation will see
other business to respond to a particular need such as the supply of goods and
services.

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