1.3.2. Air Transport in India

Air transport in India made a beginning in 1911 when airmail operation commenced over a little distance of 10 km between Allahabad and Naini. But its real development took place in post- Independent period. In 1947, there were four companies, namely 1 Indian National Airways; 2 Tata Sons Limited, 3 Air Services of India, and 4 Deccan Airways.

The Airport Authority of India is responsible for providing safe, efficient air traffic and aeronautical communication services in the Indian Air Space. The authority manages 125 airports including 11 international, 86 domestic and 29 civil enclaves at defence air fields. To enhance airport infrastructure in India, modernization of existing airport infrastructure in metro and non-metro cities and construction of Greenfield airports were contemplated. The Twelfth Five Year Plan (2012-17) envisages an investment of Rs. 65,000 crore at Indian airports, of which a contribution of about Rs. 50,000 crore is expected from the private sector. The air transport in India was managed by two corporations, Air India and Indian Airlines after nationalisation. Now many private companies have also started passenger services. Air India provides International Air Services for both passengers and cargo traffic. It connects all the continents of the world through its services.

Domestic passenger traffic handled at Indian airports reached 106 million during January to November 2012; while the International passenger traffic handled at Indian airports was placed at 37.8 million during January- November 2012. International cargo throughput at Indian airports during January-November 2012 was 1.30 MMT as compared to 1.37 MMT during the previous year. Domestic cargo throughput during January- November 2012 stood at 0.73 MMT.

The Government of India approved a Turn Around Plan (TAP) and a Financial Restructuring Plan (FRP) for improving the operational and financial performance of Air India (AI) in April 2012. The company has taken several initiatives towards cost cutting and revenue enhancement during the year 2011-12, covering route rationalization, phasing out and grounding of old fleet,

freezing of employment in non-operational areas, leveraging assets of the company to increase MRO (maintenance, repair, and overhaul) revenue and revenue from the company's real estate properties. The TAP also included operationalization of subsidiary companies in ground handling and MRO and transfer of manpower and equipment so that these could be treated as independent profit centres.