Airport Operations and Management

This report is an in-depth analysis of the Delhi International Airport Pvt Ltd operating the flight service and management of cargo at the Indira Gandhi international Airport. It discusses the factors affecting the operations and environment of the airport, the infrastructure and development at the airport, and the list of airlines operating at the airport. The report also covers the financial performance of the airport and the success formula behind its achievements.

Airport Management And Operations
Delhi International Airport Pvt Ltd

Airport Operations and Management
Executive summary
This report is in-depth analysis of the Delhi International Airport Pvt Ltd operating the flight
service and management of cargo at the Indira Gandhi international Airport. This is the one
of the biggest and largest airport of the south Asia and in India. This airport was built after 2nd
world war for facilitating the forces. Airports Authority of India in 2006 hand over the airport
to the GMR group of industries for the period of 30 years to be expands after period. The
DIAL is the organisation managing the overall operations of the airports. This report analyse
the factors that directly affect the operations and environment of the airport. These all factors
affect the development of the airport and its operations. DIAL has introduced the biometric
identification to ensure the security purpose. The main aim of the organisation maintaining
the airport is to give valuable service to the passengers. This airport has introduced potential
changes in the building that has given it the significant growth. This report will discuss the
financial performance of the airport in recent 4-5 years and reasons liable to create loss in the
year 2019. This report will discuss the recent achievements by the international organisation
for introducing the great changes in the airport plan 3A. Development of the terminals for the
better cargo facility is the key to lead the cargo service discussion. Main focus of this report
is to identify the development ideas and strategies of the airport and the success formula that
is applicable and hidden behind the achievements and awards in the recent years. This report
will identify the factors making this airport to get the number one position in India.
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Airport Operations and Management
Contents
Introduction................................................................................................................................3
Indira Gandhi International Airport (DIAL)..............................................................................3
Analysis of influencing factors..................................................................................................4
Political and legal factors.......................................................................................................4
Economic factors....................................................................................................................4
Social factors..........................................................................................................................5
Technology.............................................................................................................................5
Environment factors...............................................................................................................6
Infrastructure and development at Delhi international airport...................................................7
List of airlines operating at the airport...................................................................................7
Runways.................................................................................................................................8
Terminals................................................................................................................................8
Terminal 1...........................................................................................................................9
Terminal 1C........................................................................................................................9
Terminal 1D........................................................................................................................9
Terminal 2..............................................................................................................................9
Terminal 3..............................................................................................................................9
Proposed plan of terminal 4 5 and 6.....................................................................................10
Cargo........................................................................................................................................10
ATC Tower Operations............................................................................................................11
Connecting transport facilities to the airport............................................................................11
Rail transport........................................................................................................................11
Road transport......................................................................................................................12
Awards and certificates............................................................................................................12
Financial performance..............................................................................................................13
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Airport Operations and Management
Current position and scenario...............................................................................................14
Success formula behind DIAL.................................................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16
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Airport Operations and Management
Introduction
An airport is the place that consist a large landing area dividing into different operative
portions majorly in the air side operate runways to take-off or landing of a plane and other
land side is busy in the controlling the pre or post activities related to flight operations.
Airport is the most challenging and busiest means of transport used by the people to travel
long journey in short period of time. Airport operates the cargo and flight operations to
transfer the passenger and goods from place to place. Airports are regularly busy in the
numerous operations affect the surroundings and environment where it operates in many
ways. Hence it also gets affected by various factors prevailing in the external and internal
environment of the operative area of airports. Delhi international airport is of the busiest
airport owned by the GMR group of industries. As the busiest and largest airport of the
country and Asia it gives contribution in the various developing factors in the external
environment (DIAL; 2018).
Indira Gandhi International Airport (DIAL)
Operated by the Delhi International Airport Pvt Limited (DIAL) and owned by the GMR
group of industries located at the Palam, Delhi serving flight operation s nationally and
internationally, dealing the largest passenger and Cargo traffic. It holds the 6th busiest airport
position in Asia. In the initial stage of its establishment it was operated by the Indian Air
force, after that it was handled by the Airports Authority of India. In the year 2006 this
airport was given to operate by a private owned (DIAL) that is a group led by the GMR
group. Serving the total 69.23 million passengers, 460424 total aircraft movements, 1041
(‘000MT) Cargo movements served as the data collected in the February (Cargo 2019).
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Airport Operations and Management
Analysis of influencing factors
The main goal chased by the Delhi Airport is to serve the passengers with delight service and
quality satisfaction. To achieve this target management of Delhi airport lead the effective
planning and management studies. The operations of an airport are affected with the
numerous factors available in the country and area where it operates.
Political and legal factors
The airport and airline industry dealing in the international operations get affected by the
international changes in the law and regulations. This factor directly affects the aviation
industries and its operations (Breau 2019). The Delhi airport gets the direct impact of laws,
rules and regulations related to trade laws, taxation policy and the level of competition among
the countries. The impact of the new changes among the level of relationship between the
countries on international basis also affects the management and operations. Spreading of the
new diseases got chances to spread in the other countries as the visits of the international
passengers. This all fall in the premises of the legal and political factors so government make
changes accordingly hence the changes made by the government and legal entities impact the
operative system and then impact the income of the airport (Green n.d.).
Economic factors
Aviation and airport industries of India are supporting the Indian economy at broad level. The
sector of the aviation impact on the economy of the country is 7.5 million. Delhi international
airport dealing the domestic as well as international flight operations affected with the minor
changes in the economic conditions of the country. Rises in the monthly income of an Indian
lead the changes in the flight operations of the airport and give rise to the income and profit
of the airport. Airport handles the airlines management hence it gets affected by the economic
conditions and changes in the airlines faire and income (Narendra 2016). Like the shutdown
of Jet Airways make the great effect on the operative functions of the airport and also affect
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Airport Operations and Management
the operation of the other airlines (Prentice 2105). Changes in the price rise and down of the
aircraft maintenance affect the present and potential economic conditions of the operating
airport. Changes appearing in the global economy and new emerging investors in the aviation
industry affect the economic condition in form of change in the revenue generation per year
by the airport (Graham 2014).
Social factors
Airports also play significant role in the development of the social values of the society
where they are operating their services and facilities. The consumers focusing the better
delivery of the services are most challenging and affecting aspect of the society. Passenger
used to prefer the airport to be much facilitated and they need the services giving the value to
their investment. Focusing the passengers comfort and social development Delhi
International Airport Ltd announced the charging of the lowest among the world (Jensen,
Stephens & Sullivan 2018). This analysis of charging the lowest was based on the report of
aeronautical charges in 2018 by the M/s Leign Fisher consulting group (Rolim 2018). In
March of 2010 with the construction of 3rd terminal building in the airport, it is now capable
to handle the 62 million of the passengers per annum (Lynch 2016). This new innovation
helps the airport to develop the impact of the social factors in the society. GMR group
leading the vision to build the entrepreneurial organizations, create the effective steps to
develop the social development in the society. Humanity is the main base to ignore the false
pride and arrogant nature to deal the operations to improve the social development (Graham
2013).
Technology
Technology placed in the first and most challenging factor affecting the overall operations of
the business now days. Airport is the place using the technology in many forms. (DeVault
2016)In the last years before the rapid innovation of technology people used to get the
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Airport Operations and Management
information relevant to the flight timing and ticket booking over the calls but in the present
era of modern development of technology operation have become easy and less time
consuming. All the flights operating airlines and airline managing airports use technology to
remove hurdles of passenger’s query and doubts. Using the online website facilitate both the
passenger and the airport to deliver and get the required information. Delhi International
Airport as the busiest airport in the country and Asia, completely relay on the technology.
This is the first airport introducing the facial reduction and verification techniques to reduce
the threat of entering of wrong person with the intension of causing harms to the public. This
biometric authentication helps to reduce the risk of insecurity (Negri 2019).
Environment factors
The flights operation using the radiation and satellites to operate the operations of the airport
cause great impact over the environment. An increase in the air transport to satisfy the need
of modern civilisation result the hurdles to the relevant environment. Environment consist the
surroundings of the airport area that affect the overall operations. Weather and climate of
Delhi is the most challenging factor, because the reign of Delhi face foggy environment in the
winter season causing low visibility to the pilots. This low visibility sometimes becomes
problem and ends with the delay or cancellation of the flights. The most challenging time
Delhi International Airport face is the winter season due the fog and low temperature in the
environment make the take-off and landing of the flights very dangerous. Environment
pollution is also a great challenge, as the Delhi is the capital of the country and has a great
population area. This becomes the challenge to deal with the noise and water pollution and
also the wastage management. GMR is very concern to protect the environment from the risk
and pollution hence they use the technology and techniques to protect the wild life with target
to producing the low environment pollution and it also manage the waste to be recycled and
reused to make the environment pollution free and safe (Negri 2019).
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Airport Operations and Management
Infrastructure and development at Delhi international airport
The new changes and innovation in the Indira Gandhi international Airport are adopted by the
DIAL in the document naming Plan 3A. This plan airport have expanded the airport
operating area with the construction of four runways and also the dual elevated crossways for
the taxi service. The overall development plan is estimated to be complete by the end of year
2022. With the construction of T3 in the airport building it become the world’s largest single
terminal operating airport. This task was very challenging in the initial stage but after the
completion it sets the record in the aviation industries of the world. In 2010 this airport was
conferred the 4th position in the best airports in the categorisation of 15-20 million and the
most developing airport in the south Asia (Mayor 2016).
List of airlines operating at the airport
Aeroflot Air France All Nippon Airways
Air Arabia Air India Emirates
Air Asia Air India Express Druk Air
Air Canada Air Asia India China Airlines
Air China Ailtalia Bhutan Airways
Etihad Airlines Indigo Go Air
Iraqi Airways Japan Airlines Singapore Airlines
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Airport Operations and Management
The list of operating the flight operations at the Delhi airport is very long hence the
international as well as domestic plane are operated at the airport (Jensen, Stephens &
Sullivan 2018).
Runways
Number of runway Width Length ILS
29/11 4,430 m 60 m CAT iii B
28/10 3,810 m 46 m CAT III B
27/09 2,813 m 45 m CAT 1
As compared to operating the countries busiest runways Delhi airport is the only airport that
deal the operations with the CAT III-B ILS. That used to help to landing and takes off of the
flights in the low visibility in case of fog or smog. This achievement has resulted in the
increased in the profit of the airport and the economy of the country (Budd, Stephen & Budd
2016). With the effective operating runways this is the first airport operated two flights take
off simultaneously on the runway number 27 (Livemint 2019).
The length of the airport runways usually depends on the structures including length and
width of the aircraft it operates, and normal length of the runways estimated is 1,829 meter.
But with the expansion of the new runway it has scored the longest runway with 4,330 meter
length in India and the longest runway at Indian naval air station in Asia (throughs 2016).
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Airport Operations and Management
Terminals
The largest operating airport of the country and the South Asia it have the 3 terminals
facilitating 80 domestic and international airlines with the hajj and cargo terminal operations.
Airport authority maintain the services provides the buses/shuttles and cab facilities to pass
between the two terminals. (airport 2019)
Terminal 1
This terminal is used by the Indigo and Spice jet airlines for their domestic low expensive
flight operations. To increase the traffic handling at the terminal DIAL has proposed to
expand the terminal by the year 2022.
Terminal 1C
This terminal is useful for the domestic arrival of the airport flights. DIAL in its expansion
plan has developed and renovated it with the large waiting area and lounge facility. And it
also deals the luggage reclaim centre in the airport operation (Cargo 2019)s.
Terminal 1D
The new built and infrastructure with high technology and innovation this is the new terminal
of the airport in the departure side. This is expanded over the 53000 m2 area of the airport
with the capacity to handle the 15 million passengers in a year. This has the check in counters
self-check in counters and security check in counters in it.
Terminal 2
It started its operations on 1 May 1986, as the domestic and international terminal started the
operations in the international flights only in the year 2010 with the operation started at
terminal 3. After so many changes in the schedule use of this airport DIAL allowed the three
airlines naming Go Air, Spice Jet and Indigo to operate their day to day operations (Negri
2019).
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Airport Operations and Management
Terminal 3
This is the great innovation and changing terminal of the airport. Its design was given by
HOK that working with the consultation of Mott Macdonald with the two tier building and it
is built on the area covering 20 acres that use the upper are for the departures and lower area
for the arrivals. Specialty of this terminal is that it consist the more than 150 check-in
counters, more than 70 aerobridges, 95 immigration counters and high tech less waiting X-
ray machine counters to save the time and facilitate the passengers with quality services.
Construction of this terminal was a gift of the 2010 commonwealth games, and all airlines
shifted their operation to give better facilities to the passengers. This terminal operates the
domestic as well as international operations without any hurdles to the passengers as well as
airlines. The upcoming project of terminal 3 is to introduce World Mark to facilitate the
Aerocity mixed use with the Delhi international Airport. Terminal 3 included the contrast of
the passenger as well as cargo terminal including terminal number 4 5 and 6 (Thompson
2016).
Proposed plan of terminal 4 5 and 6
The proposed plan of building the terminal 4 5 and 6 is introduced with the expansion of the
airside and the other side of the airport. The main focus of the airport operation to introduce
these new terminals is to facilitate the cargo operations at the airport (Ward et al. 2017). The
plan approved for building the three new cargos number 4 5 6 is to increase the number of
passengers in the year because DIAL will shift the international flights and Cargo to the new
terminals and the old terminals will be used to operate the low coasting domestic flight
operations (Sinha 2019).
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Airport Operations and Management
Cargo
The separate terminals naming Brownfield and Greenfield cargo complex is in distance
around 1 km from the terminal 3 of the Indira Gandhi International Airport. The joint venture
of IDAL and Turkish company Celebi Ground Handling named Celebi Delhi Cargo
Management India Pvt ltd manager the cargo services at the brownfield terminal (CELEBI
2019).
This also deals the financing of the cargo services at Delhi Airport. Delhi Cargo service
canter using the Greenfield terminal complex divided into 2 phase a joint venture of Cargo
services Centre and International Delhi Airport Pvt Ltd (Zhu 2018).
Cargo holds 3 operational runways with a collection of 9 parking Bays. This follow the GDP
certified process of Pharmacy handling. The upcoming project of cargo world class city is
going to be introduced over 23 Acers supposed to build in front of the cargo terminal
(CELEBI 2019).
ATC Tower Operations
New infrastructure of the airport expansion in Plan 3A Delhi airport has introduced the
India’s tallest Airport Traffic Controlling (ATC) tower with the height of 102 meters. This
tower is built with modern technology and successfully playing the main source to handle the
busiest air traffic and flight operations. This tower is able to handle approximately 1,200
flight operations in a day with the estimation of increased rate of the successful flight
operations in the near future (Sinha 2019).
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Airport Operations and Management
Connecting transport facilities to the airport
The busiest and highest traffic in the Delhi city leads the effective use of the other transport
facilities. These transportations of the city give rise to the economy of the countries and other
transporting agencies.
Rail transport
According the locality of the airport nearest rail transports in Delhi is
Palam Railway station is located at the nearest rail station to the airport. Passengers travelling
from the other cities can use this to reach at the terminal 1 and terminal 3. Along with this
train service at the Shahbad Muhammadpur railway station also provide the transportation to
the airport.
Terminal 2 and terminal 3 as in the crowded location are served with the local and metro rail
transport stations respectively. Delhi airport metro express line is the hub to the railway
passengers accordingly (Lynch 2016).
Road transport
The connection of Indira Gandhi International airport is with the Delhi-Gurgaon express
highway to facilitate the passenger travelling by the road transports and taxis. This also gives
facility to the local people in form of the air conditioned low floor buses. Taxi services are
provided with great facilities to the local as well as international passengers. Counters for
pre-paid taxi and cab services are also avail to reach the passengers comfort (DeVault 2016).
Awards and certificates
2015- This airport was awarded with the two awards in 2105 for
 The Best Airport In Central Asia And India
 Best Airport Staff In The Central Asia And India
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Airport Operations and Management
This award was given for the best development and service quality improvement in the world
by the Skytrax world’s airport awards.
 Best Airport Award
Given by the ACI Airport Council International in the category followed by the 40-50 million
passengers per annum (DIAL; 2018).
2016- It was the first airport that scored a Carbon neutral status in few airports word-wide.
2017- Best Airport Award
This award was given by the ICA, for handling the 40 million international and domestic
passengers annually (Breau 2019).
Financial performance
Financial year Earning
2015 and 2016 Operating income – Rs. 4,196 Cr.
Net profit after tax – Rs. 228 Cr.
2016 and 2017 Operating income – Rs. 4,862 Cr.
Net profit after tax – Rs. 509 Cr.
2017 and 2018 Operating income – Rs. 5,624 Cr.
Net profit after tax – Rs. 586 Cr.
Net profit, in the above the table is showing the great performance of the Delhi international
airport pvt ltd in the recent years. The continuous rise in the earning of the airport and the
GMR group is the results of the efforts made by the management and planning group of the
company. The rise in the 2107-18 in the rate of profit is 16.2% (Ghosh 2017).
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Airport Operations and Management
The traffic handled by the DIAL in the last year was 50 million passengers per annum
including the domestic and international passenger. And cargo turn-over is also result the
great changes in the financial position from the last decade years.
In the year 2019 DIAL faced crises in the financial performance in the industry. It has
recorded a loss of 111.8 cr. In the year ended 31 March and 2019. The reason listed to face
this fall in the financial position was due to low airports tariff and on-going control facilities
(Brown Jr 2017).
Current position and scenario
In the year 2018 the Indira Gandhi International Airport scored the position in the 20 busiest
airports in the world-wide making the 6th position. That was on the 16th in 2017 and on 22nd
in the year of 2016. This continuous success is the result of expanding the terminal and cargo
complex with the planning to get the 100 million passengers handling per annum at the end of
2022 in the plan 3A. An estimate given by the World Airport Traffic Forecasts is about
assuming the DIAL will help India to represent the third largest aviation market after china
and United States (Breau 2019).
Success formula behind DIAL
The passenger traffic at Delhi has proved the Delhi International Airport as the busiest
airport have seen an increment by the 14.1% and growing number of passenger handling
capacity. The main product and marketing strategy of the Delhi International Airport Pvt
limited is to expand the terminal and building plan to increase the facilities to the passengers
and to increase the capacity of handling the 100 million passengers per annum (factsheet
2019).
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Airport Operations and Management
 DIAL has signed contract to expand the terminal 1 and terminal 3 with the
construction of new taxiways and runways.
 The plan is to develop the arrival and departure expansion at the terminals to support
the great number of passengers’ visits.
 Plan is designed to connect the domestic terminal with metro stations to make the
service more reliable and achieve the high rank in the top world international airports
(Gupta & Venkaiah. 2015).
Conclusion
This report is detailed analysis of the economic, political, legal, financial and environmental
factors affecting the overall operations at the Indira Gandhi international Airport operated by
the Delhi International Airport Pvt limited. This report conclude the strategies applied by the
DIAL for the expansion of the terminals is the biggest plan in form of PLAN 3A that focus to
develop the entire airport by the year 2022 and to improve the position of the airport
worldwide. This report has concluded the reason of the nonstop attainment and successes are
the plans and intention to make the airport best facilitating airports in the world. The financial
performance is showing the efforts of the directors that include the development of the airport
with the aim to make the social and community development of the society.
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