UNIT 4 AIR TRANSPORT

Structure
4.0 Objectives
4.1 Introduction
4.2 Start of air travel in India
4.3 Role of air transport in tourism promotion
4.4 Regulations in air travel
4.4.1 Freedoms of the Air
4.4.2 Open sky policy
4.5 ICAO
4.6 DGCA
4.7 AAI
4.8 Case study of Air India
4.9 Important international airlines
4.10 Let us Sum Up
4.11Answers to ‘Check Your Progress’ Exercises
4.12 Further Readings

4.0 OBJECTIVES

After reading this Unit, you will be able to understand:

 The history ofair travel in India.
 Role of air transport in tourism promotion.
 The Freedom of air and Open sky policy in air travel.
 The important institution of civil aviation in India such as DGCA, AAI and world
ICAO.
 Case study of Air India.
 Important international airlines of World.

4.1 INTRODUCTION
Transport is a key component of tourism services and the quality of transport services influences
the business of the tourism industry. A tourist always prefers to travel to a destination that is
easily accessible. Tourists choose a comfortable and convenient mode of transportation that must
be safe and secured for their movement. For example, Miss Soumya, being a female solo tourist,
prefers a means of transport that is safe, secured, timeliness, etc to reach her desired destination.
Thus, tourists also take time and costs as deciding factors for the selection of the mode of travel.

The complexity of political boundaries among the countries is an added challenge that the
transport industry primarily and often faces while offering suitable means of transport to tourists
as per their requirements. Despite this, air travel has become an attractive option for tourists due
to its speed, range, comfort, and status that it offers.

The discovery of the principle of the balloon fermented the idea of air transport. The
breakthrough was brought by Wright Brothers on December 17, 1903, by flying a Kitty Hawk
aeroplane. After World War II, the aeroplane had a revolutionary impact on tourism for
developing the modern era of mass tourism. Today, air travel has become the second most
popular mode of transport for international travel.

The Indian aviation sector is developing at an accelerating pace due to its policy related to
liberalization, privatization, and globalization. The rising number of working people, the
standard of living of the middle-class Indian, and improved connectivity have paced the air
transport industry in India.

In this Unit, keeping in view the above objectives, we will discuss air travel in India. We will
glance through the timeline of air transport in India for 110 years. We will discuss the role of air
transport in tourism promotion, freedoms of air, and open sky policy. The Unit also discusses the
importance of the institution of civil aviation in India (such as DGCA, AAI). The Unit has given
special focus on the roles and functions of ICAO.

A case study of Air India has also been presented to provide a brief overview regarding the
decisions for disinvestment.Finally, some important international airlines of the world have also
been presented.
4.2 EMERGENCE OF AIR TRAVEL IN INDIA

Students, there are many breakthrough stories related to flying objects and humans in Hindu and
Greek mythologies. For example, in Greek mythology, ‘Icarus’ was equipped with wings.
Whereas, in Hindu Mythology — the Ramayana, we come across a word like ‘Vimans,’ such
as ‘Pushpak Vimana’. There is also ancient text like ‘Vimanika Shastra’ written by ‘Maharishi
Bharadhwaj’ in India. To date, the modern history of Air Transport began on 18th February
1911, the day on which air transport, travel, and communication began in India.

The idea of the world’s first official airmail flight was conceived by the British Commander Sir
Walter Windham. As he wantedto help the chaplain of Allahabad’s Holy Trinity Church, who
needed funds for a new hostel. Windham publicized the idea of airmail in the exhibition as safe
and rapid transportation of mails. As the occasion of KumbhMela was ceremonial, cards and
letters weighing less than an ounce were considered. People took part in large numbers, and they
collected around 6,000 cards and letters that were addressed to people worldwide. A sum of six
‘annas’ was taken as a donation for delivery, and the money collected was used to raise a new
hostel building for Oxford and Cambridge Boys’ Hostel. On 18th February 1911, on
KumbhMela- Allahabad, at industrial exhibition ground, a French pilot named Henri Piquet flew
Humber biplane from Allahabad to Naini Junction, a mere six miles away to deliver the package.
The mails were delivered crossing the river Ganga at the height of 120-150 feet with a speed of
60 miles per hour, and the time taken was thirteen minutes. Figure-1,2 and 3 present the evidence
of air mail services in India.

Figure 1- A post-card, Figure 2- Mr. Henri Piquet in Figure 3- Special cachet/

Humber biplane carried the post-mark used only for one
world’s First Air Mail day, on February 18, 1911.
(Source: postalmuseum.si.edu)

Due to the First World War (1914-1918), nothing muchhappened between 1911 and 1919apart
from International Convention on Air Navigation, whichwas held in 1919. A proposal was
mooted to start air services between Delhi and London and between Cairo and Karachi but could
not be operated. In 1920, the Indian Air Board was formed, which submitted the
recommendation entitled “The Past History and Future Development of Civil Aviation in India”
in 1926, and the recommendation got approved in 1927.

The Second World War (1939-1945) crisis massively affected air transport operations in India.
On 1stJanuary 1946, the Civil Aviation operation was restarted to its commercial status in India.
Subsequently, the geospatial situation due to the partition of India in 1947derailed the air
operation. Karachi was the western entryway of undivided India to the world and it suddenly
became the capital of a newly formed county Pakistan. At the time of partition, eight air transport
companies were operational in India, namely Ambica Airways, Indian National Airways, Air
Service of India, Bharat Airways, Mistry Airways, Deccan Airways, and Tata Airlines. However,
the Orient Airways moved its base to Pakistan. Figure-4 presents the air routes in India.
Figure 4- Air Routes in India in 1947 (Source: TATA, (1994).

The rising cost of operation and other unfavourable factors had worsened the condition for all
airlines by 1952, except a Calcutta-based company. In March 1953, the Indian Parliament,
according to Planning Commission’s recommendation, approved the Air Corporations Act,
which made drastic changes in the air transportation business in India forever. The Act states
that “there shall be two corporations to be known as Indian Airlines and Air India
International.” This Actnationalized all airlines which were operational in India. Eight formerly
independent domestic airlines, namely, Airways (India) Ltd., Air Services of India Ltd., Deccan
Airways Ltd., Air-India Ltd., Bharat Airways Ltd., Indian National Airways Ltd., Himalayan
Aviation Ltd., and the Kalinga Airlines of India, were merged to form these corporations. Newly
formed corporations (Indian Airlines and Air India International) started their operations on
August 1, 1953.

With some ups and downs, the airline industry was gaining visibility and acceptability as a mode
of luxury travel. stronger. During the 1980s, India started to suffer acute shortages of
international air cargo capacity to supply goods tothe international markets. The export industry
was facing serious problems with the on-time delivery of raw materials and finished goods. The
capacity constraint of Air transport started to hinder the industry. Keeping in mind the fast-
changing scenario, the Government had adopted the Open-sky policy in April 1990 to permits
the air taxi operators to operate their flight schedules in India and have the freedom to decide
their cargo and passenger fares.

With the abolishment of the Air Corporations Act, 1953 on March 1, 1994, the new Act Air
Corporations (Transfer of Undertaking and Repeal) was enacted in the Parliament to permit new
air taxi operators to provide air services to domestic passengers. This Act has permitted private
operators to functiontheir scheduled services in India. The resulted in inviting several private
players in the Indian civil aviation market to start their domestic operations, including Damania
Airways, Air Sahara, Modiluft Airlines, East-West Airlines, NEPC Airlines, Sahara Airlines,
and Jet Airways.

Due to the rise in air travel demand, the Union Governmentof India in December 2004 permitted
Indian Scheduled carriers to function their scheduled services to international destinations.
However, with certain conditions such as the operator should have a minimum fleet size of 20
aircraft and five years of continuous operations.Table-1 shows the important timeline of Air
transportation in India.

Table-1 Important timeline of Air transportation in India

Year Events
Indian Air Transport started on 18th February 1911.
1912, Dec The Indian State Air Services (in collaboration with Imperial Airways -
UK) started the first domestic air route between Delhi and Karachi.
1912 The first airmail service was started by Tata Airlines.
1915 The first Indian airline, Tata Sons Ltd., without any patronage from the
government started a regular airmail service between Karachi and
Madras.
1924 Construction of civil airports began at Gilbert Hill in Bombay, Bamrauli
in Allahabad, and Dum Dum in Calcutta.
1927, April Department of Civil Aviation was set up.
1929, Feb. J.R.D. Tata became the first person to be awarded a pilot license.
1932 J.R.D. Tata flew a De Havilland Puss Moth,the first Tata Sons Ltd. flight
to deliver mail carried by British Imperial Airways from Karachi to
Bombay.
1932, October Indian Scheduled Air Transport started. Tata Airlines started Air Mail
15th services on the Karachi, Ahmedabad, Bombay, Bellary, Madras routes.
1937 The Indian Aircraft Act was formulated in 1934 and was enacted in 1937.
1937 Air Services of India, airline service was launched.
1941, July The Harlow trainer,India’s first aircraft was rolled out for test flight.
1946, July ‘Tata Airlines’ was renamed ‘Air India’ and converted into a public
29th limited company.
1948, March Air India International was incorporated but its international services were
8th inaugurated.
1948, June 8th Air India International starteda weekly flight between Bombay and
London via Cairo and Geneva.
1949, January The “Night Air Mail Service” was introduced.
30th
1950 Formation of the Air Transport Inquiry Committee for reviewing the
existing state of the Air transport industry.
1952 The Planning Commission recommended the merger of all scheduled
airlines into a single corporation.
1953, March The Indian Parliament passed the Air Corporations Act, 1953.
1953 Civil Helicopter Services were introduced.
1953. The Indian Airlines Corporation, popularly called ‘Indian Airline’ was
established. The airline was later merged with the other airline of India
called- Air India in 2011.
1986 The National Airports Authority was constituted.
1986 Air Taxi operators were allowed to provide on-demand services.
1987 The Bureau of Civil Aviation Security was established.
1990, April The Government adopted an Open-sky policy.
1990 East-West Airlines was the first national private airline to operate in the
country.
1994, Mar 1 Air Corporations Act, 1953 was repealed and was replaced by the Air
Corporations (Transfer of Undertaking and Repeal) Act.
1995, Apr 1 The Airport Authority of India was constituted by merging the
International Airport Authority of India with National Airports Authority.
1997 Policy on Airport Infrastructure of India was developed for the use and
development of airport infrastructure.
1999, June 10 CIAL Airport was the first airport in India that was built with public-
private participation and was made operational.
2003 Entry of Low-cost carrier.
2004, Dec Indian Scheduled carriers were permitted to operate scheduled services to
international destinations.
2005 Indian Airlines was rebranded as Indian. The Government designated Air
India, Indian Airlines, Jet Airways, and Air Sahara to operate
international services.
2007 The Regional Airlines Policy was announced wherein licenses were given
for the operation of airlines within a particular region.
2008, Apr 24 Greenfield Airport Policy of the Government was announced.
2009, May 12 Airports Economic Regulatory Authority of India (AERA) was
established to regulate the economic aspects of airports.
2010 Airport Economic Regulatory Authority Appellate Tribunal (AERAAT)
was established.
2010 Pawan Hans started its Sea Plane Services Jal Hans.
2016 The National Aviation Civil Policy was released.
2016 The launch of the UDAN (UdeDeshKaAamNagrik) Policy was
performed.
2020 Directorate General of Civil Aviation (DGCA) as the statutory body was
formed under the Aircraft (Amendment) Bill, 2020.
2021 Unmanned Aircraft System (UAS) Rules, 2021 to conduct experimental
flights of drones.
Source: Compilation from the websites
Table -2 shows airlines operaring in India and their profiles.

Table-2 Important Indian Airlines

Type of
Airline Logo Commenced Headquarters IATA ICAO
Service
 Table-2 Important Indian Airlines
Type of
Airline Logo Commenced Headquarters IATA ICAO
Service

Air India 1946 Delhi AI AIC Full Service

GoAir 2005 Mumbai G8 GOW Low Cost

IndiGo 2006 Gurgaon 6E IGO Low Cost

SpiceJet 2005 Gurgaon SG SEJ Low Cost

Vistara 2015 Gurgaon UK VTI Full Service

Source Compilation from the Websites.

4.3 ROLE OF AIR TRANSPORT IN TOURISM PROMOTION

In today’s developing world, one can observe that the disposal time of a tourist is limited and
disposable money is unlimited. Therefore, tourists try to enjoy and view as many things as
possible within a few weeks (leisure tourist) or few days (business tourist). Therefore, air
transport has become a boon for tourists to visit tourist places of interest in a short period. It has
reduced the time takento travel a long distance and save valuable time. Due to its speed and
range, air travel has become the most popular mode of tourist transport. For example, in 2019, 59
per cent of the total international inbound touristshad completed their journey through air travel.
Air access liberalization policy and deregulation have enhanced tourist accessibility to the
region. The liberalization has reduced airfares and travels time to destination. Air transport plays
a crucial role in opening up new destinations and even established destinations. Many countries,
regions, and destinations would have remained unreachable without airlines. Air access has
improved tourist choice of destination, which has increased tourists flow to existing and new
destinations. In addition to that, it has also led to the growth of hub and spoke networks, low-cost
airlines, and cooperative activities among alliance members. These facilities have, in turn,
improved the tourism arrivals and tourist traffic in-country or destination.

In the international tourism market, an increased degree of tourist knowledge and awareness
regarding different tourism products has improved access to a destination. As a result, Airlines
destination promotion campaigns have frequently been catalysts in destination decisions and
generate tourists’ choice sets. Therefore, it has become a key ingredient in tourism development
with increased competition among airlines and aggressive tourism destination promotion.

4.4 REGULATIONS IN AIR TRAVEL

Every government has jurisdiction over its airspace within its borders and can govern air
commerce. Therefore, any aircraft while travelling over a particular place is subject to the central
government’s authority.

The Directorate General of Civil Aviation (DGCA) in India regulates air transport services
to/from/within India. The regulations such as the Aircraft Act or the Civil Aviation Requirements
are formed. The objectives of policy and regulation are improving air connectivity, increasing
travellers’ benefits and choices, and creating competitive business opportunities.

4.4.1 FREEDOMS OF AIR

‘Freedom of Air’ is a set of bilateral agreements concerning commercial aviation rights and
privileges for international flights of a country to enter and land in a foreign country’s airspace.
On December 7, 1944, 54 nations signed the International Air Service Transit Agreement in the
Convention on International Civil Aviation in Chicago.
There are a total of nine ‘Freedoms of Air’ under which international air services operate. The
first two freedoms (also known as the “International Air Services Transit Agreement”) a multi-
lateral agreement signed by 129 countries in 2007. The non-signatory countries are Brazil,
Russia, Indonesia, and China. The third to fifth freedom is also known as the “International Air
Transport Agreement.” The first five together are known as “Five Freedoms” of Air Transport.
The other four Freedoms of Air are not officially recognized under International bilateral treaties.
Instead, they are bilaterally between countries, or a group of countries agreed to open their air
space for each other.

First Freedom of Air(also known as transit

freedom or First Freedom Right) - The
freedom is to provide international air
services to fly across a foreign country from a
home country travelling to another country
airspace without landing into its territory.

For example,an airline (Air India) from Country A (India) to fly Tel Aviv (Israel) through
Country B’s (Saudi Arabia) airspace, without landing the airline in Country B.

Second Freedom of Air(also known as a

Second Freedom Right) - The freedom is to
provide international air services to stop in a
foreign country for a technical reason or non-
traffic purposes such as refueling,
maintenance, or emergencies purpose only.
The purposes such as boarding or deplaning passengers in that country are not allowed. Here the
final destination of the international flight is a third country.

For example, an Air India flight from Delhi (Country A) to San Francisco, in emergency
refueling at a Japan (Country B) airport.

Third Freedom of Air(also known as a Third

Freedom Right) - The freedom is to provide
international air services to carry or deplane
traffic, i.e. passengers from the airline’s home
country to another country for commercial services.

For example, British Airways of the UK (Country A) is granted by the Indian government to put
down its passengers in India (Country B). Similarly, Air India can deplane its passengers in the
UK.

Fourth Freedom of Air (also known as a Fourth

Freedom Right)-The freedom is to provide
international air services to pick up passengers
from another country to the airline’s own country
for commercial services.

For example, British Airways of the UK (Country

B) was granted the right to pick up passengers from India (Country A) by the Indian government.
Similarly, Air India has the right to have passengers from the UK.

Fifth Freedom of Air (also known as a “beyond right”or Fifth Freedom Right) -The freedom to
international air services to take passengers from its home country to the second country is to put
down and pick passengers
to third-country where the
passengers then deplane.

For example, an Air India flight operates on and off between Ahmedabad (India) (Country A)
and London (UK) (Country B), and Newark (USA) (Country C), so passengers originating from
Ahmedabad can go to London or Newark.

Sixth Freedom of Air(also known as a Sixth Freedom Right) –

The freedom is to provide
international air services to
carry passengers between two
foreign countries via the
carrier's home country. With
the hub, this freedom has
become common for most air transport networks.
For example, British Airways of the UK is granted to carry passengers between India (Country
B) and the USA (Country C) via UK (Country A).

Seventh Freedom of Air -

The right is to provide
scheduled international air
services to carry traffic from
one country to another
country by establishing a
foreign hub outside the
airline's home country. The international air flight need not an extension of any service or
connectionto/from the airline's home country.

For example, Singapore Airlines of Singapore (Country A), operating between Mumbai (India)
(Country B) - London (UK) (Country C) sector without serving Singapore, i.e. the home country
of the airline.

Eighth Freedom of Air(also known as “consecutive cabotage” or Eighth Freedom Right) –The
freedomis to carry passengers
between two domestic points
in a foreign country on a flight
that originates or terminates in
the home country of the
foreign airline.

For example, Singapore Airlines of Singapore (Country A), while operating Singapore-Chennai-
Mumbai can pick-up passenger and carry to Chennai-Mumbai (India) (Country B).

Ninth Freedom of Air(also known as “stand-alone” cabotageor Ninth Freedom Right) –The
right is to operate flights
between two domestic
destinations in a foreign
country. It means that an
airline from country A
can originate a flight in a foreign country B to pick up passengers from one point to put down
another point within the foreign country. This service should be without continuing or prior
service to or from the airlines’ home country.

For example, a flight of Singapore Airlines of Singapore (Country A), fly in the sector: Delhi-
Mumbai (India) (Country B) or Kolkata-Chennai on Indian domestic sector.
(Source: ICAO.int).

4.4.2 OPEN SKY POLICY

The ease of access to fly to other countries depends on the degree of “sky openness” or the
number of freedoms of air granted to foreign airlines by a country. A country follows such policy
to benefits from increased passenger flow, international tourist arrival, freight flow, and domestic
good exports. It is a bilateral agreement that “provides rights for airlines to offer international
passenger and cargo services”.

The government of India adopted the “open skies”policy for air cargo in 1990. It was initially for
three years, but later on, in 1992, the policy was extended permanently by the government. This
policy has allowed air taxi operators to functionits carriers on a charter and a non-charter basis
from any airport in India. The National Civil Aviation Policy (2016) has allowed the Indian
government to engage in bilateral ‘open sky’ air services agreements on a reciprocal basis with
the South Asian Association for Regional Cooperation (SAARC) nations and countries beyond
5,000 kilometers radius from New Delhi. For countries within 5000 kilometers, the rights of
additional seats above the existing seats get auctioned.

Today, India has bilateral agreements with over 100 nations. India has open sky agreements with
countries such as the USA, Jamaica, Japan, Greece, Finland, Guyana, and others. There are
limited open-sky policies with ASEAN countries and with some restrictions with the UK. A
revised Open Sky Policy 2020 has been announced to ensure equal opportunity for Indian
registered operators in the air cargo capacity. As per the 2020 policy, there is a restriction for
foreign ad hoc and pure non-scheduled charter service flights to operate from six airports only.
The airports are Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai.
 Check your progress 1

1) Discuss therole of air transport in tourism promotion.

………………………………………………………………………………………….......
………………………………………………………………………………………….......
………………………………………………………………………………………….......

2) What are the “Five Freedoms” of Air Transport??

……………………………………………………………………………………………...
……………………………………………………………………………………………...
………………………………………………………………………………………...........

4.5. ICAO

The International Civil Aviation Organisation (ICAO) was created with a multilateral effort in
the Convention on International Civil Aviation in Chicago. This Convention superseded all the
existing multilateral treaties on civil aviation (i.e., the Paris Convention of 1919 and the Havana
Convention of 1928). The agreement was signed by 52 nations on 7 December 1944, but it
started operating on 4 April 1947. Today, ICAO is a UN specialized agency linked to the
Economic and Social Council (ECOSOC). The headquarters of ICAO is located in the Quartier
International of Montreal, Quebec, Canada. It is funded and directed by 193 national
governments for cooperation in air transport to oversee and regulate the development of
international aviation.

ICAO is working with a mission to serve countries for international civil aviation. It develops
policies and standards to undertake compliance audits, provides assistance, performs studies and
analyses, and builds aviation capacity with the cooperation of its member countries and
stakeholders.

ICAO has established five Objectives to achieve by 2030

1. Safety: To enhance global civil aviation safety, it outlines various activities in its Global
Aviation Safety Plan (GASP).
 2. Air Navigation Capacity and Efficiency: To increase the capacity and upgrade the air
navigation infrastructure to improve the efficiency of the global civil aviation system. It
outlines the essential activities in Global Air Navigation Capacity and Efficiency Plan
(Global Plan).
3. Security & Facilitation: To enhance global civil aviation security and facilitation. This
objective echoes its leadership in aviation security, facilitation, and border-related
security matters.
4. Economic Development of Air Transport: To foster an economically viable civil aviation
system by focusing on economic policies and supporting activities.
5. Environmental Protection: To support all aviation-related environmental activities to
minimize their adverse environmental effects.
These policies are made to support a secure and efficient civil aviation sector in terms of
economic and environmental sustainability. Furthermore, it ensures civil aviation operations and
regulations with global standards.
(Source: icao.int)

4.6 DGCA

The Directorate General of Civil Aviation is the regulatory body in Civil Aviation in India under
the Ministry of Civil Aviation. It is the statutory body formed under the Aircraft (Amendment)
Bill, 2020. Its headquarters is located in New Delhi, and regional offices are in various places in
India. It operates with a vision to promote safe and efficient Air Transportation through
regulation and safety systems. It deals with air safety issues, including personnel licensing,
aircraft airworthiness, and certification of airlines and aerodromes.

Some essential functions of DGCA are as follows:

1. Registration of civil aircraft.
2. Formulation of standards and grant of certificates of airworthiness for civil aircraft
registered. It also certifies aerodromes and CNS/ATM facilities.
3. To conduct examinations and licensing of pilots, air traffic controllers, and flight and
aircraft maintenance engineers.
4. To grant Air Operator’s Certificates to scheduled and non-scheduled flights of Indian
carriers.
 5. Regulation of air transport services operating to/from/within/over India by Indian and
foreign operators. Including clearance of scheduled and non-scheduled flights of such
operators.
6. To investigate incidents of aircraft upto 2250 kg AUW and take accident prevention
measures.
7. To carry out amendments to various Acts or passing a new Act to perform following the
amendments to the international Convention or ICAO.
8. Coordination of ICAO matters with all agencies and takes necessary action according to
Universal Safety Oversight Audit Programme (USOAP) of ICAO.
9. To act as a nodal agency for implementing Annex 9 provisions in India.
10. Grant approval to aircraft design, manufacturing, repair, and maintenance.
(Source: dgca.gov.in)

4.7 AAI

An Act of Parliament constituted the Airports Authority of India (AAI). It was formed on 1st
April 1995 by merging the International Airports Authority of India and the National Airports
Authority. The merger entrusted with a view to creating upgrading, maintaining, and
managingaviation infrastructure. AAI is established with a mission: “to be the foundation of an
enduring Indian aviation network, providing high quality, safe and customer-oriented airport
and air navigation services thereby acting as a catalyst for economic growth in the areas we
serve.” The institution helps speed up the integrated development, expansion, and modernization
of civil aviation facilities to international standards.

The functions of AAI includes

• Control and Management of the Indian airspace extending beyond the country’s
territorial limits, as recognized by ICAO.
• Design, Development, Operation, and Maintenance of domestic and international
airports and civil enclaves.
• Development and Management of cargo terminals at domestic and international
airports.
• Construction, Modification, Management of passenger terminals and passenger
facilities and information system at airports.
 • Expansion and strengthening of operation areas, such as Taxiway, Runways, Aprons,
etc.
• Provision of visual aids, Communication, and Navigation aids, such as ILS, DVOR,
DME, Radar, etc.

AAI manages 137 airports, which includes

• 24 International Airports (including 3 International Civil Enclaves),
• 80 Domestic Airports,
• 10 Customs Airports (including 4 Customs Civil Enclaves), and
• 23 Domestic Civil Enclaves at Defence airfields.

AAI also provides specific training to its employee, in their four training institutions such as the
National Institute of Aviation Management and Research (NIAMAR) – Delhi, Civil Aviation
Training College (CATC) - Allahabad, and Fire Training Centres (FTCs) at Delhi & Kolkata.
(Source: aai.aero)

4.8 CASE STUDY OF AIR INDIA

Tata Airlines was the country’s first scheduled airline, established on 15th October 1932 by
J.R.D. Tata. Tata airlines have been renamed many times to be what it is today, the ‘Air India
Limited’.
• On 29th July 1946, Tata Airlines was renamed Air India and converted into a public
limited company.
• On 8th March 1948, The Government of India had acquired a 49% stake in Air India
and incorporated Air India International to start international operations.
• On 8th June 1962, Air India International was again renamed as Air India by dropping
the suffix – ‘International’.
• In 2007, Air India and Indian Airlines were merged to form a single unit named
National Aviation Company of India Limited (NACIL).
• In 2010, NACIL was renamed Air India Limited.

Air India operates 124 aircraft in 2021, out of which 88 planes are in service, and 36 are parked.
Its air fleet includes Airbus A330, A321, A320, A319, A310, A300, and Boeing B787
Dreamliner, B777, B767, B757, B747, B737, and others. It caters to more than 18 million annual
passengers and employed around 18,000 people.

Air India has a unique history of naming its aircraft such as Rani of Jhansi, Rani of Nilgiris,
Ashoka, Rajendrachola, Vikramaditya, Chandragupta, Kanishka, Everest, Kanchenjunga, Nanga
Parbat, Konark, Tanjore, Khajuraho, Ajanta, Agra, and Velha Goa, etc.

Air India is in about $8 billion in debt. It is growing unsustainably, even though it was bailed out
in 2012 with $5.8 billion. Air India had reported losses for the straight last six years from Rs -
65.12 billion in 2013 to Rs -85.56 billion in 2019. Its domestic market share had fallen from
19.4% in 2013 to 12.1% in 2019. Figure 5 below depicts its financial performance in the last six
years.

Figure 5:Financial performance of Air India Limited (2013-2019) (Source: Statista.com)

The reason for this pathetic financial performance of Air India Limited is mismanagement,
escalating labour disputes, eroding market share, declining profits, and corruption. In 2012, the
Indian government tried to bring it out from debts and provided a bailout package of Rs. 30,000
crore. But it fails, and again Air India has become a loss-making company, as figure 5 above
depicts, which has led the Indian government to decide the disinvestment of Air India. The
divestment process of Air India started on December 14, 2020, and to be completed in 2021-22.
4.9. FEW IMPORTANT INTERNATIONAL AIRLINES

With the development of state-of-the-art technology in the air transport industry, it has become a
major mode of transportation for both leisure and business travellers. To satisfy the increasing
demand from passengers, many airlines have started their operations to cater to the distinct
demand of air travellers from low-cost airlines to high-end airline suites. Some of the important
international airlines are as follows: Table -3 presents profiles of some important international
airlines that are operating from and to India.

Table-3 Important International Airlines

Commenced Country
Airline Logo Headquarters IATA ICAO
operation

United
25th October Arab
Emirates Dubai EK UAE
1985 Emirates

Singapore 1st October Singapore

Singapore SQ SIA
airlines 1972

15th Japan
ANA All Nippon
December Tokyo NH ANA
Airways
1953

17th June, U.S.

Delta Airlines Atlanta DL DAL
1929

Lufthansa 1st April 1955 Cologne Germany

Source: Compilation

Emirates

Emirates is the largest and flagship airline of Dubai, which functions from Terminal 3 of Dubai
International Airport. With a global network spanning 83 countries, it flies over 3600 flights
every week. The airline catered to around 56 million passengers in 2019-2020 in 157
destinations. It is the world’s most multicultural flight with 172 nationalities on board and
employed around 45040 employees in 2020. In addition, it launched the world’s first fully-
enclosed First Class private suites in 2017.

Singapore Airlines

Singapore Airlines is the flag carrier of Singapore, headquartered at Singapore Changi Airport.
Singapore Airlines, along with its divisions, SilkAir and Scoot fly, flies over 80 destinations on
five continents and around 130 destinations globally.

It employed 16760 people in 2019-20 to give its best to passengers. Singapore Airlines
codeshares with 38 airlines. It operates a fleet of 114 aircraft, consists of Airbus and Boeing
passenger aircraft from six families, namely Airbus A380-800, Airbus A350-900, Boeing 787-
10, Boeing 777-300ER, Boeing 737-800NG, and SilkAir Fleet. It has won the best airline
globally (31 out of 33 years) in the category of Readers’ Choice Awards given by Condé Nast
Traveler (USA).

ANA All Nippon Airways

All Nippon Airways Co., Ltd. (also known as Zennikkū or ANA) is the largest air carrier in
Japan. It uses the Dual Hub Network of Haneda and Narita Airports to cater to its passengers. In
1999, the carrier partnered with the star alliance to improve its coverage. As of March 2019, it
employs 14,242 employees. It operates a fleet of 228 aircraft, consists of Airbus and Boeing
passenger aircraft. It provides service to over 25 international destinations across South Asia,
East Asia, Europe, North America, and 50 domestic destinations.

Delta Airlines

Delta Air Lines is a major U.S. air carrier. It caters to around 16.3 million passengers who fly to
50 countries and 300 destinations. The airline operates a fleet of 784 aircraft, consists of Airbus,
Boeing, McDonnell Douglas, and Embraer aircraft. The carrier attends around 15000 daily
departures with their partner airlines across Europe, the Middle East, Africa, and Central and
South America. Delta airlines are one of the founding members of the SkyTeam airline alliance.
Lufthansa

The Lufthansa Group of Germany is one of the leading airlines in the world. It operates more
than 197 global destinations around 78 nations across the Asia Pacific, Middle East, Europe,
America, and Africa. Around 36.4 million passengers have flown with Lufthansa in 2020. It
operates with an extensive network of Network Airlines, Eurowings, and Aviation Services. Its
primary hubs are at Frankfurt and Munich airports. It is one of the five founder partners of the
Star alliance. It operates a fleet of 262 aircraft, which comprises Airbus, Boeing, and McDonnell
Douglas aircraft.

Check your progress 2

1) Write five functions of DGCA.

………………………………………………………………………………………….......
………………………………………………………………………………………….......
………………………………………………………………………………………….......

2) What are the functions of AAI?

……………………………………………………………………………………………...
……………………………………………………………………………………………...
………………………………………………………………………………………...........

4.10 LET US SUM UP

The one hundred and ten years of air travel history in India has been an eventful one. From
delivering airmail by crossing a river for constructing a hostel to experimental flights of drones.
With liberalization, privatization, globalization, and now the disinvestment of Air India, the
Indian aviation sector has come a long way. Following various rules like freedoms of the air, the
opening of Indian air apace through open sky policy, the Government has created institutions
such as DGCA and AAI in coordination with ICAO to develop civil aviation in India. Air
transport will play a powerful and beneficial role in developing civil aviation in India and World.
Many domestic and international air carriers are operating in India and they have played a very
pivotal role in laying a strong foundation of the air transport sector in India, thereby promoting
inbound, outbound,and domestic tourism in India.

4.11 ANSWERS TO ‘CHECK YOUR PROGRESS’ EXERCISES

Check Your Progress 1

1) See Sec. 4.3
2) See Sub Sec 4.4.1

Check Your Progress 2

1) See Sec. 4.6
2) See Sub 4.7

4.12FURTHER READINGS

 Swain, S. K., & Mishra, J. M. (2012). Tourism: Principles and practices. Oxford
University Press.
 TATA, J.R.D. (1994). The Sixteenth British Commonwealth Lecture: The Story of Indian
Air Transport. Current Science, 455-479.
 https://postalmuseum.si.edu/collections/object-spotlight/india-and-the-worlds-first-
official-air-mail-by-airplane
 Https://www.icao.int/sustainability/casestudies/statesreplies/India_En.pdf
 Https://www.icao.int/pages/freedomsair.aspx7
 Https://www.icao.int/
 https://www.dgca.gov.in/digigov-
portal/?page=jsp/dgca/topHeader/aboutDGCA/organisation/org_Manual/Organisation%2
0Manual.pdf
 https://www.aai.aero/en/corporate/organization#:~:text=The%20functions%20of%20AAI
%20are,country%2C%20as%20accepted%20by%20ICAO.