Bench Marking Of Airport

This project is about benchmarking of top International Airports with different key measures are being used in it for benchmarking from a financial point of view of Delhi International Airports. This project is done on the bases of terms and condition or guidelines of Operational management & Development Agreement (OMDA) which was signed by GMR consortium on 4th day of April, 2006 I have gained a useful knowledge form GMR. I experienced a beneficial training session helped me in my future how to work in an organization. It was under the guidance of Mr. Rajesh arora (General Manager Accounts & Finance, now Vice President) and his team helps me a lot and the result is I successfully completed my project on benchmarking of airport. Through out my training program I came to know several terms and condition that I was completely unaware of at a time. The extreme professionalism involved and hard work of the team members was tremendous. The systematic working and functioning of the airport were detailed to me in the beginning of my training period. Later these processes helped me understand the organizations work pattern even more. My work involved benchmarking of airports so as to compare and analyze the position of the Delhi International Airport among the other International Airports of the world. The data for the comparative study was mainly acquired from the internet. I purely focused on how to work in an organization. once again I want to say thank to all team members who helped me during training session. The Delhi International Airport is the busiest airport in India in terms of number of daily flights and the second-busiest in India in terms of passenger volume. The airport serves as the primary civilian aviation hub for the National Capital Region of India. The airport was previously operated by the Indian Air Force and was a part of the Palam Airport until its management was transferred to Airport Authority of India. In May 2006, the management of the airport was passed over to a joint venture, known as Delhi International Airport Limited (DIAL) and led by GMR Group, which will also have the responsibility for the airport's ongoing expansion and modernisation. The old Palam terminal is now known as Terminal 1 and handles all domestic flights. The terminal has been divided into three separate terminals - 1A (for domestic flights of state owned Indian Airlines and Kingfisher Airlines), 1B (for all other domestic airlines) and Domestic Arrival Terminal. There is also a separate Technical Area for the use of VVIP movements. Additionally there is a separate Hajj terminal for catering rush during Hajj. Owing to the booming Indian Aviation industry and the entry of numerous low-cost private carriers, the airport saw a huge jump in passenger traffic and has failed to

cope with the demand. The capacity of Terminal 1 is estimated to be 7.15 million passengers per annum. However, the actual throughput for 2005/06 was an estimated 10.4 million passengers. Including the international terminal (Terminal 2), the airport has a total capacity of 12.5 mppa whereas the total passenger traffic in 2006/07 was 16.5 million passengers per annum. In 2007, there was a 6.5 million increase in the airport's passenger traffic, making the number of passengers 23 million that used the airport. In 2008, total passenger count at the airport reached 23.97 million. Delhi Airport has two parallel runways and a non-parallel runway: a new runway 11/29(14,534ft (4430m))with CAT IIIB ILS on both sides, the main runway 10/28 (12,500 ft (3,810 m)) and an auxiliary runway 09/27 (9,229 ft (2,813 m)). Runway 28 is one of the few runways in Asia and the only one in South Asia equipped with CAT III-B instrument landing system. In the winter of 2005 there were a record number of disruptions at Delhi airport due to fog/smog. Since then some domestic airlines have trained their pilots to operate under CAT-II conditions of a minimum 350 m (1,100 ft) visibility. On 31 March 2006, IGI became the first Indian airport to operate two runways simultaneously following a test run involving a SpiceJet plane landing and a Jet Airways plane taking off at the same time. As there is an Indian Air Force Base in the flight path of Delhi airport it is necessary for civilian aircraft to make a five-minute detour to avoid over-flying the military facility. In previous years the IAF used to close Delhi airport for use during annual celebrations to mark its "raising" day. As of 2006 such activities are conducted at Hindon Air Force Base to reduce disruption to civilian air traffic at Delhi airport.

BENCHMARKING WORLDWIDE Sandeep Singh-

FOR

IMPROVEMENT

OF

MAJOR

AIRPORTS

This note presents the concept of benchmarking of airports from the perspective Of financial statements and air statistics. Benchmarking is valuable for three reasons: • • •

Provides basic data otherwise difficult to obtain Defines world class standards for facilities Identifies priorities for improving the physical design at individual airports. Effective benchmarking thus focuses on objective data of capacity or performance that can be measured and observed across widely different operations, rather than on data that is either subjective derived by from widely different accounting practices.

(INTRODUCTION) “Benchmarking is that which makes the Strange

familiar & the Familiar strange”

The purpose of this note is to present the concept of benchmarking for design of airports. It is motivated by the observation, based on worldwide experience, that the persons interested in the design of airports -- that is owners, operators, airline users or community leaders -frequently have only very limited access to data and understanding of what best practice worldwide might be. To compensate for this lack of information, the internet and the information available with the organization proved very helpful. Designers and clients for major airport projects need access to better information on worldwide best practice. This note indicates both how this might be done, by discussion and example. The difficulties encountered in developing this first preliminary example of benchmarking of airports for design provide a basis for discussion of the concept and suggest areas of needed improvement.

CONCEPT OF BENCHMARKING Definitions of Benchmarking:





Process of continuous improvement without reinventing the wheel. �

Process of identifying, understanding, and adapting outstanding practices from any organization to help your camp improve it’s performance and outcomes �

Process of continuously comparing your camp against other organizations anywhere in the world to gain information on philosophies and policies, ractices, and measures which will help your camp take action to improve its performance

“Benchmarking is the process of comparing the cost, cycle time, productivity, or quality of a specific process or method to another that is widely considered to be an industry standard or best practice. Essentially, benchmarking provides a snapshot of the performance of your business and helps you understand where you are in relation to a particular standard. The result is often a business case for making changes in order to make improvements. The term benchmarking was first used by cobblers to measure ones feet for shoes. They would place the foot on a "bench" and mark to make the pattern for the shoes. Benchmarking is most used to measure performance using a specific indicator (cost per unit of measure, productivity per unit” Benchmarking is applicable to any organizational process, whether it is a production or a service, in the private or the public sector. This initial application to major airports is designed to Stimulate discussion of the process in airport planning and design. To date, benchmarking has been applied to airports in two ways. These focus either on some measures of customer satisfaction or on economic efficiency. Neither of these is directly useful to designers. Various organizations periodically conduct surveys of airport performance, based on subjective surveys of passengers’ appreciation of such issues as “customs efficiency” or “availability of baggage trolleys”. These measures are systematically inappropriate for worldwide comparisons because they are based on widely different customer perceptions of what constitutes good service. For example, a European air passenger accustomed to being required to arrive at the airport 1 to 2 hours before a flight, may find that a processing time of 30 minutes provides good service, whereas an American or Singaporean passenger used to much faster service might judge 15 minutes of processing time to be unacceptable. Thus an equivalent objective level of performance is rated quite differently across the world, and the subjective comparison is virtually meaningless.

(Process of Benchmarking) It includes four steps:1. The identification of key measures of performance or capacity 2. The selection of comparable facilities worldwide 3. The collection of the relevant data

4. The analysis of the data and the consequent ranking of the facilities worldwide

Key Measures In benchmarking for design it is best to focus on measures of physical capacity. These can be identified relatively easily and objectively -- the number of runways or the size of the facilities is fairly evident for example, although caution must be exercised. In fact, the performance of any airport depends on both the available physical capacity and the effectiveness of the personnel. The performance of the staff is however both extremely difficult to measure in principle, and quite impractical as of now. In any case, the performance of the staff is the responsibility of the managers, not the designers. Considering the difficulty of obtaining comparable data from all over the world, this first benchmarking of airports focused on fairly clear and simple measures of capacity. For the airside, these were:

1. 2. 3. 4. 5. 6. 7.

The The The The The The The

number of full-length runways; number of gate positions with and without bridges; and area of the airfield. Aero and Non Aero income. Air Traffic Statistics. Air Cargo Statistics. Air Cargo Income.

8. Expenses. 9. Profit Etc. To compare facilities fairly, the measures of capacity has to be normalized with respect to the traffic using the airport. (Airports

Benchmarked)

The focus for this initial application is on major airports because they have the largest problems and are more interesting from the point of view of design and Financial Stability. The criterion for selecting airports was their number of annual passengers, which is a good indication of the type of operations and infrastructure at an airport. (Key Measures taken for benchmarking in our project is as follow):-

✔ Total Passengers ✔ Total ATMs ✔ Total Revenue per ATM ✔ Total Revenue per Passenger ✔ Total Revenue per Employee ✔ Aeronautical Revenue per ATM ✔ Aeronautical Revenue as a Percentage of Total Costs ✔ Aeronautical Revenue as a Percentage of Total Revenues ✔ Aeronautical Revenue per Passenger ✔ Commercial Revenue per Passenger ✔ Total Costs per ATM ✔ Total Costs per ✔ Staff Costs per Passenger ✔ Passengers per ATM EV / EBITDA Multiples – recent happenings have pushed the envelope. ✔ Operating Profit

Aeronautical services and facilities:- means those services and facilities at an airport that are necessary for the operation and maintenance of civil aviation at the airport, and includes each service or facility that is shown below:1. Provision of flight operation and new support systems.

2. Ensuring safe and secure operation of the airports. 3. Movement and parking of the airports and control facility. 4. General maintenance and upkeep of the airport. 5. Hanger age of the aircrafts. 6. Flight Information display screens. 7. Rescue and fire fighting services. 8. Management and administration of personnel at the airport. 9. Movement of the staff and passengers at the airport. 10.Operation and maintenance of passenger boarding. 11.Any other services for the safe operation of the airports. 12.Aerodrome control services. 13.Airfield. & Airfield Lighting 14.Air taxi Services 15.Airside and land side access roads. 16.Aircraft fuelling services. 17.Apron and aircraft parking area & Apron control 18.Meeting areas. 19.Baggage systems. 20.Bird scaring & Check-in concourses. 21.Cleaning, heating, lighting and air-conditioning in public areas. 22.Custom and immigration halls. 23.Emergency services. 24.Facility for disabled and other special needs people. 25.Fire services & Flight info. 26.Foul and surface water drainage. 27.Guidance systems and marshalling. 28.Information desk. 29.Inter-terminal transit system. 30.Lifts, escalators and passenger conveyors. 31.Loading bridges & Test property. 32.Passenger and hand baggage search. 33.Piers and gate rooms. 34.Policing and general security. 35.Prayer Rooms. 36.Facility for post offices. 37.Facility for public telephones & Facility for banks. 38.Facility for banks. 39.Facility for Bureau de Change. Non-Aeronautical Services:- means those services which provides for the benefits of passengers and for their convenience at airport there are some nonaeronautical services at glance :1. Aircraft cleaning. 2. Airline Lounges.

3. Cargo handling. 4. Cargo terminals. 5. General aviation. 6. Ground handling. 7. Hangers. 8. Heavy maintenance. 9. Observation terrace. 10.Banks/ATMs. 11.Bureau de Change. 12.Business centre. 13.Conference centre. 14.Duty free sales. 15.Flight catering. 16.Freight consolidators. 17.General retail shops. 18.Hotels and motels. 19.Hotel reservation services. 20.Line maintenance. 21.Locker rental. 22.Logistic centers. 23.Messenger services. 24.Porter services. 25.Restaurant/Bars etc. 26.Special assistance. 27.Tourist information services. 28.Travel agencies. 29.Vehicle fuelling. 30.Vehicle rental. 31.Vehicle parking. 32.Vending machines. 33.Warehouses. 34.Welcoming services

Delhi International Limited (DIAL)

Airport

• DIAL is a consortium consisting of:•

GMR

50.1%

•

Fraport AG

10.0%

Pvt.

•

Malaysian Airports Holding Berhad

•

IDF

3.9%

•

AAI

26.0%

10.0%

• May 3rd, 2006, DIAL (Delhi International Airport Private Limited) took over operations of . Indira Gandhi International Airport • DIAL is the new operator, manager and developer of IGI Airport • Fraport’s role in JV is that of Airport Operator • The consortium holds a 30 year concession with a further 30 year option • AAI staff would be retained for three years, those not wishing to join DIAL Would revert to the Airport Authority of India in May 2009. DIAL was formed with the objectives of operating, maintaining, developing, designing, constructing, upgrading, modernizing, financing and managing the IGI Airport at New Delhi. OMDA was signed at the airport on the 4th day of April, 2006 to undertake these functions. In January 2006, the consortium was awarded the concession to operate, manage and develop the IGI Airport following an international competitive bidding process. OMDA along with SSA, Shareholders Agreement, CNS-ATM Agreement, AOA Agreement, State Government Support Agreement, Lease Deed and Escrow Agreement were signed for the betterment of the Airport at New Delhi. Measures have been taken to provide state of the art facilities and other safety feature at the Airport Terminals. However, only the international ATM has shown an increase by 8% in the previous year. Domestic ATM has been flat and has neither increased nor decreased substantially. Somewhat similar has been the case with the passenger movement. International passenger movement at the airport has increased by6% and he domestic movement has declined by 9% according to study. Due to the major efforts by the organization the revenues over the year showed an increment being 5% and 33% for the Aeronautical and Non-Aeronautical incomes respectively. The decline in cargo tonnage led to a decline in the expected cargo income by 22%.Through the year, shareholders funds and loan funds played a major role as the source of funds for the organization. The year 2008-2009 has shown major capital additions in the form of runway and terminal upgrading. The additions involved additions of a new runway and introduction and upgrading of state of the art facilities at the IGI Airport. Besides upgrading the existing terminals, DIAL has already commissioned a new runway 1129 at IGI Airport on September 25, 2008. It has also inaugurated the new domestic departure terminal 1D (T1D) on 26th February, 2009. T1D will increase the capacity

of domestic departures to 10 million passengers per annum. The new terminal has a modern 4 level in-line baggage handling system to eliminate baggage X-ray prior to check in, spacious security hold area with extensive F&B and retail facilities, special contact zone for passengers with special needs and baggage handling area on a separate level allowing greater space for passenger amenities. In spite of net dues from other companies which amounted to a total of Rs 45.10 crores approximately.. The company ensured provision of world class services to its passengers by signing in fresh contracts with world class renowned brands. The organization ensured provision of world class services to its passengers by F&B services, help desks, complaint desks, flight information counters etc. were introduced to facilitate the passengers and increase the standards of the airport. Safety and security being important aspects were taken care of and special facilities were set up within and outside the premises of the airport to ensure them.ISO9001:2000 certificate was achieved for certification. CISF certificate was also successfully achieved. A consortium of 12 banks has signed the financing documents for loans aggregating to Rs 4986 crores during the year 2007-2008. Pending their utilization, certain loan funds were invested in risk free short term investments. Upon approval of shareholders the share capital was increased to Rs 2000 crores.

DIAL’s Vision • To build a world class airport by 2010 • Achieve an ASQ Rating of 4.0 upon opening of T3 • Train; develop DIAL staff to deliver consistently outstanding customer service • Support the training and development of other stakeholders (e.g. Airport Police, Customs,

Immigration, Aviation Security, Airlines, Ground Handlers,

Concessionaires …) to raise awareness of importance of customer service • Establish systems, processes, infrastructure and attitude amongst airport staff to support the realization of this vision

(Partners of DIAL) ✔

GMR Group: - GMR Group is a Bangalore headquartered global infrastructure major with interests in Agri-business Airports, Energy, Highways and Urban Infrastructure (including SEZ). Founded in 1978,

by its Chairman G.M. Rao, the Group has grown into a well diversified and professionally managed organisation. Employing the publicprivate partnership model, the Group has successfully implemented several infrastructure projects and is in the process of developing several others, both in India and abroad. ✔

Airports Authority of India: - AAI is responsible for the provision of airport infrastructure, airport maintenance and air traffic control services in India. AAI is constituted under the Airports Authority of India Act, 1994 and is responsible for civil airports and civil passenger enclaves at defence airports.

✔

Frapor: - Frankfurt Airport Services Worldwide is a global airport

operator that offers comprehensive airport management services including terminal and traffic management, baggage and cargo handling, aviation ground handling, aviation security and consulting. It operates airports in Germany, Turkey & Peru. Its flagship Frankfurt Main Airport is ranked amongst the top 10 airports in the world. ✔ Eraman Malaysia: - Eraman Malaysia is the retail arm of Malaysian Airport Holdings Berhad (MAHB). It is largest airport retail and commercial property developer in Malaysia. Eraman has more than 40 outlets at various international and domestic airports across Malaysia, including world-famous Kuala Lumpur International Airport (KLIA). ✔ India Development Fund: - IDF is India's largest private equity fund

focused on infrastructure development in India with a corpus of Rs. 8,437 million. The main investors are Infrastructure Development and Finance Corporation (IDFC-PE), Life Insurance Corporation of India, State Bank Of India, Bank of Baroda and Union Bank of India.

(London Heathrow Airport) London Heathrow Airport or Heathrow located in the London Borough of Hilling don is the largest and busiest airport in the United Kingdom. It is the world's third busiest airport for passenger traffic and it handles the most international passenger

traffic in the world. Heathrow is owned and operated by BAA, which also owns and operates six other UK airports. BAA is itself owned by an international consortium led by the Spanish Ferrovial Group. Heathrow is the primary hub of British Airways, BMI and Virgin Atlantic. Heathrow Airport is used by over 90 airlines which fly to 170 destinations worldwide. Of Heathrow's 67 million annual passengers, 11% travel to UK destinations, 43% are short-haul international travelers, and 46% are long-haul. The busiest single destination in terms of passenger numbers is New York, with over 3.5 million passengers travelling between Heathrow and JFK / Newark airports in 2007. The airport has five passenger terminals (Terminals 1, 2, 3, 4 and 5) and a cargo terminal. Terminal 5 opened to passengers on 27 March 2008 and will be fully completed with the opening of its second satellite building in 2010. Originally, Heathrow had six runways, arranged in three pairs at different angles, with the passenger terminal in the centre. With growth in the required length for runways, Heathrow now has just two parallel runways running east-west. Runway 23, a short runway for use in strong south-westerly winds, was decommissioned in 2005 and now forms part of a taxiway. Policing of the airport is the responsibility of the aviation the Metropolitan Police, although the army, including armored Household Cavalry, has occasionally been deployed to the airport heightened security. Heathrow's reputation for thefts has led to it referred to as “Thiefrow”.

security unit of vehicles of the during periods of sometimes being

Heathrow airport has its own resident press corps, consisting of six photographers and one TV crew, serving all the major newspapers and television stations around the world. As BAA owns London's three major airports and therefore has a monopolistic position, the amount it is allowed to charge airlines to land aero planes at Heathrow is heavily regulated by the Civil Aviation Authority (CAA). Until 1 April 2003, the annual increase in landing charge per passenger was capped at inflation minus 3%. From 2003 to 2007, charges increased by inflation plus 6.5% per year, taking the fee to £9.28 per passenger in 2007. In March 2008, the CAA announced that the charge would be allowed to increase by 23.5% to £12.80 from 1 April 2008, and by inflation plus 7.5% for each of the following four years. In addition, air traffic between Heathrow and the United States was strictly governed by the countries' bilateral Bermuda II treaty. The treaty originally allowed only British Airways, Pan Am, and TWA to fly from Heathrow to the US. In 1991 PAA and TWA sold their rights to United Airlines and American Airlines respectively, and Virgin Atlantic was added to the list of airlines allowed to operate on these routes. In 2002, American Airlines and British Airways announced plans to coordinate the scheduling of their trans-Atlantic routes but plans were dropped after the United States Department of Transportation made approval conditional on the granting of further access slots to Heathrow to other US airlines. American Airlines

and British Airways considered the slots too valuable and dropped the plans. The Bermuda bilateral agreement conflicted with the Right of Establishment of the United Kingdom in terms of its membership in the EU, and as a consequence the UK was ordered to drop the agreement in 2004. A new "open skies" agreement was signed by the United States and the European Union on 30 April 2007, and came into effect on 30 March 2008.Whilst the cost of landing at Heathrow is determined by the CAA and BAA, the allocation of landing slots to airlines is carried out by Airport Co-ordination Limited (ACL). Traffic and statistics:- The operator of Heathrow, BAA, claims that Heathrow is the "world's busiest international airport", but it is only the world's third-busiest by total passenger traffic, after Atlanta-Hartsfield-Jackson and Chicago O'Hare, which are also international airports. However, Heathrow has the highest number of international passengers. In 2008 Heathrow was the busiest airport in Europe in terms of total passenger traffic (13.6% more passengers than at Paris-Charles de Gaulle Airport and 25.6% more than at Frankfurt Airport), but it was third behind Charles de Gaulle and Frankfurt in terms of plane movements (12.9% fewer landings and take offs than at Charles de Gaulle, and 2.2% fewer than at Frankfurt). Heathrow airport was fourth in terms of cargo traffic (after Charles de Gaulle, Frankfurt and Amsterdam Airport Schiphol). In January 2009 the Transport Secretary Geoff Hoon announced that the UK government support the expansion of Heathrow by building a third runway (2200m) and sixth terminal building. This decision follows the 2003 white paper on the future of air transport in the UK, and a public consultation in November 2007. This was a controversial decision which met widespread opposition because of its greenhouse gas emissions, destruction of local communities, and noise and air pollution. A plan to make Heathrow an international railway exchange has also been proposed with the potential construction of Heathrow Hub railway station.

(Hong Kong International Airport) Hong Kong International Airport is the main airport in Hong Kong. It is colloquially known as Chek Lap Kok Airport because it was built on the island of Chek Lap Kok by land reclamation, and also to distinguish it from its predecessor, the closed Kai Tak Airport.

The airport opened for commercial operations in 1998, replacing Kai Tak, and is an important regional trans-shipment centre, passenger hub and gateway for destinations in Mainland China and the rest of Asia. Despite a relatively short history, Hong Kong International Airport has won seven Skytrax World Airport Awards in just ten years. HKIA also operates one of the world's largest passenger terminal buildings and operates twenty-four hours a day. In 2008, Hong Kong International Airport was the second busiest airport in the world in terms of cargo traffic, handling 3,656,724 tons of cargo. It was also the 12th busiest airport worldwide in terms of passenger throughput, registering 47,898,000. HKIA is the primary hub for Cathay Pacific, Dragon air, Hong Kong Express Airways, Hong Kong Airlines, Air Hong Kong (cargo) and Asia Jet (private). Chek Lap Kok Airport was designed as a replacement for the former Hong Kong International Airport (popularly known as Kai Tak Airport) originally built in 1925. Located in the densely built-up Kowloon City District with a single runway extending into Kowloon Bay, Kai Tak had only limited room for expansion to cope with steadily increasing air traffic. By the 1990s, Kai Tak had become one of the world's busiest airports – it far exceeded its annual passenger and cargo design capacities, and one out of every three flights met delays, largely due to lack of space for aircraft, gates, and a second runway. In addition, noise mitigation measures restricted nighttime flights, as severe noise pollution was estimated to adversely affect at least 340,000 people. Construction of the new airport was only part of the Airport Core Programme, which also involved construction of new road and rail links to the airport, with associated bridges and tunnels, and major land reclamation projects on both Hong Kong Island and in Kowloon. The project is the most expensive airport project ever, according to Guinness World Records. Construction of the new airport was voted as one of the Top 10 Construction Achievements of the 20th Century at the Con Expo conference in 1999. Opened on 6 July 1998, a week later than the new Kuala Lumpur International Airport, it took six years and US$20 billion to build. On that day at 6:25 a.m., Cathay Pacific's CX889 was the first commercial flight to land at the airport, pipping the original CX292 from Rome which was the scheduled first arrival. The architects were Foster and Partners. For three to five months after its opening, it suffered various severe organisational, mechanical, and technical problems that almost crippled the airport. Computer glitches were the main cause of the crisis. At one time, the government reopened the cargo terminal at Kai Tak Airport to handle freight traffic because of a breakdown at the new cargo terminal, named Super Terminal One (ST1). However, after six months the airport started to operate normally. Officially opened in June 2007, the second airport terminal, called T2, (check-in facility only) is linked with the Airport Express Line with a new platform. The terminal also features a new shopping mall Sky Plaza, providing a large variety of shops and restaurants, together with a few entertainment facilities. T2 also houses a 36-bay coach station for buses to and from mainland China and 56 airline check-in counters, as well as customs and immigration facilities.

Besides T2, the Sky City Nine Eagles Golf Course has been opened in 2007 whereas the second airport hotel, the Hong Kong Sky City Marriott Hotel; and a permanent cross-boundary ferry terminal, the Sky Pier, are slated to begin operation in 2008 and 2009 respectively. Development around T2 also includes the Asia World-Expo which has started operation in late 2005. A study for the HKIA Master Plan 2030 is underway to examine whether and how infrastructures at HKIA - including airport access, terminal and apron facilities and a new runway - should be developed to support the economic growth of Hong Kong and the region.

Operations The airport is operated by the Airport Authority Hong Kong, a statutory body wholly owned by the Government of Hong Kong Special Administrative Region. The Civil Aviation Department (CAD) is responsible for the provision of air traffic control services, certification of Hong Kong registered aircraft, monitoring of airlines on their compliance with bilateral Air Services Agreements, and the regulation of general civil aviation activities. The airport has two parallel runways, both of which are 3800 metres in length and 60 metres wide, enabling them to cater to the next generation of aircraft. The south runway has been given a Category II Precision Approach, while the north runway has the higher Category IIIA rating, which allows pilots to land in only 200 metre visibility. The two runways have an ultimate capacity of over 60 aircraft movements an hour. At present there are 49 frontal stands, 28 remote stands and 25 cargo stands. Five parking bays at the Northwest Concourse are already capable of accommodating the arrivals of the next generation of aircraft. A satellite concourse with 10 frontal stands for narrow body aircraft is under construction to the north of the main concourse for commissioning by the end of 2009, bringing the total number of frontal stands at the airport to 59. The airport was the third busiest airport for passenger traffic in Asia in 2008, and the world's second busiest airport for cargo traffic in 2008. In terms of international traffic, the airport is the third busiest for passenger traffic and the busiest for cargo since its operation in 1998. There are 85 international airlines providing about 800 scheduled passenger and all-cargo flights each day between Hong Kong and some 150 destinations worldwide. About 76 percent of these flights are operated with wide-bodied jets. There is also an average of approximately 31 non-scheduled passenger and cargo flights each week. The operation of scheduled air services to and from Hong Kong is facilitated by air services agreements between Hong Kong and other countries. Since the opening of HKIA, the Hong Kong Special Administrative Region Government has implemented a policy of progressive liberalization of air services with the intention of promoting consumer choice and competition. Many low-cost airlines have started various regional routes to compete head-on with full-service carriers on trunk routes. The airport's long term expansion opportunities are subject to variables. A proposal to build a third runway has been under feasibility study and consultation but would be very expensive as it would involve additional reclamation from deep waters, and the building cost of the third runway may be as high as the building cost of the entire airport. On the other hand, there exists only one airway between Hong Kong and mainland China, and this single route is often and easily backed up causing

delays on both sides. In addition, China requires that aircraft flying the single air route between Hong Kong and the mainland must be at an altitude of least 15,000 feet. Talks are underway to persuade the Chinese military to relax its airspace restriction in view of worsening air traffic congestion at the airport. Other than that, Hong Kong Airport Authority is cooperating with other airports in the area to relieve air traffic and in the future, Shenzhen may act as a regional airport while Hong Kong receives all the international flights. The airport is one of the most accessible in operation today. Despite its size, the passenger terminal is designed for maximum convenience. A simple layout and effective signage, moving walkways and the automated people mover allow quick and easy movement throughout the building. The airport also features the HKIA Automated People Mover, a driverless people mover system consisting of 3 stations to provide fast transportation from the check-in area to the gates (and vice versa). These trains travel at 62 km/h and the service is provided for free to all passengers and crew. The airport has a total of 70 boarding gates , with 63 jet bridge gates and seven virtual gates which are used as assembly points for passengers, who are then ferried to the aircraft by apron buses. Of the 63 jet bridges, five are capable of handling the Airbus A380. Terminal 1 Terminal 1 of the HKIA is currently the third largest airport passenger terminal building in the world (570,000 m²), after Dubai International Airport's Terminal 3 (over 1,500,000m²) and Beijing Capital International Airport's Terminal 3 (986,000 m²). At its opening, Terminal 1 was the largest airport passenger terminal building, with a total gross floor area of 550,000 m². It briefly conceded the status to Bangkok's Suvarnabhumi Airport (563,000 m²) when the latter opened on 15 September 2006, but reclaimed the title when the East Hall was expanded, bring its total area to the current 570,000 m². (The East Hall expansion included a 39,000 m² expansion to Sky Mart, a shopping mall.) Terminal 1's title as the world's largest was surrendered to Beijing Capital International Airport's Terminal 3 on 29 February 2008. Terminal 2 Terminal 2 of the Hong Kong International Airport, together with the Sky plaza, opened on 28 February 2007 along with the opening of the Airport Station's Platform 3. It is only a check-in and processing facility for departing passengers with no gates or arrival facilities. Hong Kong Business Aviation Centre The Hong Kong Business Aviation Centre (BAC) is located within the confines of the airport and has its own terminal and facilities separate from the public terminal. It provides a full range of services for executive aircraft and passengers, including passenger lounge, private rooms and showers, business centre facilities, ground handling, baggage handling, fuelling, security, customs and flight planning.

(Singapore ,Changi Airport)

Singapore Changi Airport or simply Changi Airport is a major aviation hub in Asia, particularly in the Southeast Asian region, and is the main airport in Singapore. Located in Changi on a site of 13 square kilometers (5.0 sq mi), it is about 17.2 kilometers (10.7 mi) north-east from the commercial centre. The airport is operated by the Civil Aviation Authority of Singapore (CAAS) and is the home base of Singapore Airlines, Singapore Airlines Cargo, SilkAir, Tiger Airways, Jetstar Asia Airways, Valuair, and Jett8 Airlines Cargo. It is a hub for Garuda Indonesia and a secondary hub for Qantas, which uses Singapore as the main stopover point for flights on the Kangaroo Route between Australia and Europe, the latter being the largest foreign airline to operate from the airport with over two million passengers handled annuallyAs of April 2008, there are about 4,340 weekly flights operated by 80 airlines to over 116 cities in 59 countries. An important contributor to the Singapore economy, 13,000 people are employed at the airport. The airport accounts for over S$4.5 billion in output. In 2007, the airport handled a record 36,701,556 passengers, a 4.8% increase over the 2006 fiscal year. This made it the 19th busiest airport in the world and the fifth busiest in Asia by passenger traffic in 2007. In addition to being an important passenger traffic hub, the airport is one of the busiest cargo airports in the world, handling 1.89 million tonnes of cargo in 2007. Incentives like the Air Hub Development Fund, first introduced in 2003, have proven effective in attracting airlines here. A new S$300 million fund to strengthen Changi's hub status will start in 2007 when the S$210 million fund expires in 2006. The new S $1.75 billion Terminal 3 opened on 9 January 2008, and Terminal 1 will be upgraded along the lines of the renovated Terminal 2, with the latter costing S$240 million. Changi has been courting both premium and budget travellers with the opening of a commercially important persons terminal by JetQuay and a S$45 million Budget Terminal in 2006. Since its opening in 1981, the airport has made its mark in the aviation industry as a benchmark for service excellence, winning over 280 awards in a 20-year period from 1987 to 2007 and with 19 Best Airport awards won in 2007 alone Changi Airport's efforts to counter the onset of age include periodic physical upgrades to its existing terminals, building of new facilities and taking steps to provide a high level of customer service. The airport has a development policy of always building years ahead of demand to help to avoid congestion problems common in major airports and maintain high service standards. While the original master plan details plans for two passenger terminals, there have been provisions to provide for long-term expansion initiatives, including the allocation of space for a third terminal planned to have a physical configuration mirroring that of Terminal 2. Changing needs in the aviation industry led to reviews in the master plan, resulting in the decision to cater to the high-end as well as budget sectors of the air travel industry. Although the pioneering airport to conceptualise and construct a Budget Terminal in Asia, it became operational on

26 March 2006 a few days after the opening of a similar terminal in Kuala Lumpur, and was officially opened on 31 October 2006. A dedicated stand-alone "Commercially Important Person" (CIP) terminal operated by JetQuay, started operations on 15 August 2006 and officially opened on 29 September 2006. It is the first luxury airport terminal in Asia. Even as new terminals are being built, the airport continuously upgrades and expands its existing terminals. The master plan for the existing airport initially involved a dual-terminal and dualrunway configuration over Given limited land resources in Singapore, the airport was designed for both current and future needs as the country's primary airport. The airport was designed to be capable of doubling in size using reclaimed land with enough space for two more runways and at least two new passenger terminal buildings. two phases with provisions for another two passenger terminals in the near future. Phase 1 included the construction for the first passenger terminal, the first runway, 45 aircraft parking bays, support facilities and structures, including a large maintenance hangar, the first fire station, workshops and administrative offices, an airfreight complex, two cargo agents buildings, in-flight catering kitchens and an 78 m (260 ft) control tower. Construction for the second phase would commence immediately after the completion of Phase 1 and include the second runway, 23 new aircraft parking bays in addition to the existing 45 bays, a second fire station and a third cargo agent building. Changi Airport currently has five terminals. Terminals 1, 2 and 3 are directly connected with a common transit area, with airside passengers being able to freely move between the terminals without going through immigration. Transport within and between these three terminals is provided by people movers and the skytrain system, although it is also possible to walk between the terminals on foot for landside visitors. Situated beside Terminal 2 is JetQuay, which has its own check-in facilities for premium passengers and where transportation to aircraft in any of the other terminals are by personal buggy. The Budget Terminal, purpose-built for lowcost carriers, is physically separated from the main terminals towards the south, where connections are possible via a free shuttle bus service to Terminal 2. All five terminals currently have a handling capacity of 68.7 million passengers a year spread over an area of 1,045,020 m2 (11,248,500 sq ft). Capacity will rise again to 73 million passengers a year when expansion works to the Budget Terminal are complete by early 2009. Changi Airport, with all five terminals now cater to a spectrum of passengers. The Budget Teminal is for cost conscious passengers, Terminal 1, 2, and 3, take care of the bulk of the travelers, and the JetQuay CIP terminal target those who demand luxury when travelling.

Budget Terminal: Changi Airport was the second in Asia (after Kuala Lumpur International Airport) to open a dedicated terminal catering to the budget traveller. The name of the Budget Terminal was decided as a result of a naming contest open

to the public. The terminal is not included in the numbering scheme even though it is the third terminal to be opened and Terminal 3 is actually the fifth terminal opened at the airport. In order to offer lower landing fees, handling fees and airport taxes, it cuts back on amenities such as aerobridges, elaborate physical structures and decorations in the passenger terminal building. The corridors used by arriving passengers are not airconditioned, although the main hall and departure lounges are. A range of duty-free shops and Food and Beverage outlets, and free internet terminals are available. There is no transfer facility at the Budget Terminal. Passengers who need to make transfers need to clear immigration, collect their luggage, clear customs, make their way to the main terminal by taking the free shuttle buses and check-in again with the respective airline. In September 2008, expansion works costing $10 million will start and take seven months to complete. When ready, the terminal will be able to handle seven million passengers a year, up from 2.7 million now. There will also be more boarding gates, check-in counters, shops and dining options.

Benchmarking of DIAL V/S HEATHROW London Airport

DIAL

Heathrow, London

Passenger Movement

Increased6%

Decrease,1.4%

Cargo Tonnage

Flat

Increase6.6%

Air Traffic Movement

Increased8%

Decreased0.5%

BENCHMARKING DIAL(Rs cr)

Airport

Heathrow, London(Rs Cr)

Net Income

472.93

10333.6

Expenditure

374.78

8165.9

9.88

2099

88.28

2167.6

2000

3153.6

Personnel/Staff Cost

172.51

1659.8

Net Expenditure

374.77

8166

Depriciation and Ammortisation Profit before Taxation Share Capital

Subsidiary Companies

2

KPI KPI Total Revenue Per ATM Total Revenue Per Passenger

DIAL

HEATHROW

2052

215858

188

1542

Aero Revenue

650,000,000

264,611,368 12 52,300,000 7,868,780

ATU Aero Revenue/ATM

14,929

90.14

4051

407526.2

Aero Revenue as % of Total Cost

62.00%

288.20%

Aero Revenue as % of Total Revenue

36.00%

48.10%

156 273

0.632 9.07

Total Revenue/000 ATUs

Aero Revenue/Passenger Commercial Revenue/Passenger

COST KPI DIAL

Cost KPI Total Cost/ATM Total Cost/Passenger Staff Cost/Passenger Staff Cost as % of Operating & Staff Cost

HEATHROW 24410

38141

250

267

55

266

63.00%

99.80%

PROFITABILITY RATIOS DIAL Operating Profit

HEATHROW 9%

83%

18

16.93

2573

16145

98

142.6

Capex

44.00%

113.70%

EBIDTA as a % of Turnover

20.00%

83.30%

Operating Profit/passenger Passengers/Employee Passengers/ATM

Benchmarking of DIAL V/S CHANGI (SINGAPORE)

Airport

DIAL

Changi, Singapore

Air Traffic Movement

Increased 6% Flat Increased 8%

Airport

Changi, DIAL(Rs Singapore(R cr) s Cr)

Passenger Movement Cargo Tonnage

Net Income Expenditure Depreciation and Amortization Profit before Taxation Profit after Taxation Share Capital Personnel/Staff Cost Net Expenditure Subsidiary Companies Bank Balance Interest Income

472.93 374.78 9.88 88.28 56.66 2000 172.51 374.77 2 32.21 0.23

Decreased0.6% Decreased21.4% Increased 7.4%

2362 1880 147.1 627.4 486.6 826.1 1029.4 1895.2 98.8 41

Operating profit before working capital changes Cash generated from operations Tax Paid Net Cash used in investing activities Net Cash from financing activities

63.24 5.28 12.9

211.5 192 42.6

3188.35 3288.5

42.6 137.5

(Key Performance Indicator) KPI KPI

DIAL

Total Revenue Per ATM Total Revenue Per Passenger Aero Revenue ATU Aero Revenue/ATM Total Revenue/000ATUs Aero Revenue as % of Total Cost Aero Revenue as % of Total Revenue Aero Revenue/Passenger

CHANGI 2052 188

10181 638.3

650000000 52300000 14929 4051 0.62 0.36 156

14363937 71181866 28683 5649.12 0.858 44.1 181.6

273

219.5

Commercial Revenue/Passenger

COST KPI Cost KPI Total Cost/ATM Total Cost/Passenger Staff Cost/Passenger Staff Cost as % of Operating & Staff

DIAL 24410 250 55 0.63

CHANGI 33565 211.5 33.61 0.248

Cost

PROFITABILITY RATIOS Column1 Operating Profit Operating Profit/passenger Passengers/Employee Passengers/ATM Capex EBIDTA as a % of Turnover

DIAL

CHANGI

9% 18 2573 98 44.00% 0.2

49% 6.03 25841 158.9 53% 0.669

Benchmarking of DIAL V/S HKIA Airport

DIAL

HKIA

Passenger Movement Cargo Tonnage

Increased6% Flat

Increase1.7% Increase3.1%

Air Traffic Movement

Increased8%

Increase2.0%

Airport

DIAL(Rs Cr)

Net Income Expenditure Operating Expenses Depriciation and Ammortisation Profit before Taxation Profit after Taxation Share Capital Personnel/Staff Cost

250 221 72 7.24 17.71 16.71 2000 47.52

HKIA(RSCr) 2808.9 1069.6 1069.6 701.3 1008.24 840.2 19004 346

Net Expenditure

221.1 2 (0.10 each) 24.38 1 23 102.34 195.5 544.12

Subsidiary Companies Bank Balance Tax Paid Repairs And Maintainance Investment On Tangible Assets Investment On Intangible Assets Current Liabilities

1069.6

214.55 168.05 12.15 29126.7 174.25 626.8

KPI DIAL(Rs Cr)

KPI Revenue Per ATM Revenue Per Passenger Aero Revenue ATU Aero Revenue/ATM Total Revenue/000ATUs Aero Revenue as % of Total Cost Aero Revenue as % of Total Revenue Aero Revenue/Passenger Commercial Revenue/Passenger

HKIA(RS Cr)

2052 188

9363 597.44

650,000,000 52,300,000 14,929 4051 62.00% 36.00% 156 273

20,774,421 103,600,000 76.94 37300 72.30% 48% 0.49 0.53

Cost KPI COST KPI Total Cost/ATM Total Cost/Passenger

DIAL(Rs Cr) 24410 250

HKIA(RSCr) 8934.5 61.5

Staff Cost/Passenger Staff Cost as % of Operating & Staff Cost

55 63.00%

7.22 20.00%

PROFITABILITY RATIOS DIAL(Rs Cr)

KPI Operating Profit Operating Profit/passenger Passengers/Employee Passengers/ATM Capex EBIDTA as a % of Turnover

HKIA(RSCr)

9% 18 2573 98 44.00% 20.00%

34% 5.02 40824 154.1 0.00% 61.00%

Benchmarking Of Airports Delhi IGI Airport Runways

3810m (Asphalt) 2813m (Asphalt)

BAA London, Heathrow Airport 3901m (Grooved Asphalt) 3660m (Grooved Asphalt)

4430m (Asphalt)

ATM

2,30,000

4,78,693

Singapore, Changi Airport

Hong Kong, Internatio nal Airport 3800m (Asphalt)

Dubai, Internatio nal Airport

4000m (Concrete)

Amsterda m, Schiphol Airport 3800m (Asphalt)

4000m (Concrete)

3500m (Asphalt)

3800m (Asphalt)

4000m (Asphalt)

2750m (Asphalt)

3453m (Asphalt)

2,32,000

3400m (Asphalt) 3300m (Asphalt) 2014m (Asphalt) 4,58,050

3,00,000

4000m (Asphalt)

260,530

Passeng er Moveme nt

25Million

(67Million)

37Million

Capacity

12Million

>70Million

68.7 Million

Air Freight

.43Million

1.6million

1,9Million

47Million

1.5Million

47.1Million

37.5Million

87Million by 2020

62 Million

3.6Million

1.824Million

Operating Ratios KPIs CHAN GI

DIAL Total Revenue Per ATM Total Revenue Per Passenger

2052 188

10,181 638.3

HKIA 9363 597.44

HEATHR OW 215858 1542

REVENUE KPIs CHAN GI

DIAL 27,36 Aero Revenue ATU Aero Revenue/ATM Total Revenue/000ATUs Aero Revenue as % of Total Cost Aero Revenue as % of Total Revenue

HKIA

HEATHR OW

52,300,000 14929 4051

14,363,9 37 71,181,8 66 28683 5649.12

20,774,4 21 103,600, 000 76.94 37300

264,611,36 8 127,86 8,780 90.14 407526.2

62.00%

85.80%

72.30%

288.20%

36.00%

44.1

48%

48.10%

0,000,00

Aero Revenue/Passenger Commercial Revenue/Passenger

156

181.6

0.49

0.632

273

219.5

0.53

9.07

COST KPIs CHAN GI

DIAL Total Cost/ATM Total Cost/Passenger Staff Cost/Passenger Staff Cost as % of Operating & Staff Cost

HKIA

HEATHR OW

24410 250 55

33565 211.5 33.61

8934.5 61.5 7.22

38141 267 266

63.00%

24.80%

20.00%

99.80%

PROFITABILITY RATIOS CHAN GI

DIAL Operating Profit Operating Profit/passenger Passengers/Employee Passengers/ATM Capex EBIDTA as a % of Turnover

9% 18 2573 98 44.00% 20.00%

HKIA

49% 6.03 25841 158.9 53% 66.90%

34% 5.02 40824 154.1 0.00% 61.00%

HEATHR OW 83% 16.93 16145 142.6 113.70% 83.30%

REFRENCES ➢ http://www.visionrealization.com/Resources/Organizational/Benchmarking.pdf ➢ http://www.apqc.org/

➢ http://www.asq.org/ ➢ austlii.law.uts.edu.au/ ➢ www.hongkongairport.com ➢ www.changiairport.com ➢ www.heathrowairport.com ➢ www.garsonline.in ➢ www.books.google.co.in ➢ Statistics Singapore-Yearbook of Singapore 2008 ➢ Waitakere City council

➢ www.newdelhiairport.in ➢ http://en.wikipedia.org/wiki/Heathrow ➢ http://en.wikipedia.org/wiki/Changi_airport

➢ www.irasia.com