The Centre for Asia Pacific Aviation reports that the Government of India has approved the Airports Authority of India (AAI) and Indian Space Reseach Organisation's (ISRO) proposal for the implementation of the GPS Aided Geo Augmented Navigation (GAGAN) project for seamless navigation over Indian airspace at an estimated cost of INR 7.74 Billion.

Ex-post facto approval has also been given to the amount of INR 1.48 Billion already spent in the first phase of the project. With GAGAN, India will be only the fourth country in the world to have a satellite based navigation system.

The management of airspace, a sovereign function, has been assigned to the AAI. The AAI presently uses ground based terrestrial navigation system for providing safe navigation over the Indian airspace. The ground based system has site limitations and range problems.

To overcome the limitations of ground based navigation systems, in 1993, the International Civil Aviation Organisation (ICAO) endorsed use of a Global Satellite Navigation System as a future Air Navigation System for Aviation. Following this, the AAI and ISRO entered into an MoU in 2001 for the implementation of the GAGAN project for seamless navigation over Indian airspace.

The United States has put in place a Global Positioning System (GPS) using 29 satellites at an altitude of 20,000 km orbit. However, the position accuracies required for precision approach and landing, for Civil Aviation, cannot be met by the core GPS constellation, due to the uncertainties in the position accuracies caused by Ionospheric delays, satellite ephemeris and clock errors. The constellation needs to be augmented to provide higher accuracy, reliability and integrity, with the help of a Space Based Augmentation System (SBAS).

In order to provide enhanced accuracies with integrity, reliability and continuity, it is essential to have an augmentation system capable of collecting data in two frequencies over the service area, separate these errors at the master control centre and communicate and correct message to the aviation user in the frequency as that of the core GPS.

To achieve this, an SBAS consisting of a geo-stationary space segment for the core constellation, a ground segment consisting of reference stations, the master control centre and an uplink earth station are required. The reference stations collect dual frequency data, which is communicated to the master control centre. At the master control centre, the errors are separated and the corrected navigation message is sent to the navigation transponder on board the geo stationary satellite, which translates it to the user GPS civil frequency. The GAGAN system proposes to augment the GPS data with the help of a geo stationary satellite to be launched by ISRO and the ground based infrastructure of reference stations, uplink earth stations and master control center created by the AAI.

The implementation of the GAGAN programme is being realized in two phases:

• GAGAN TDS phase (Technology Demonstration System) - to develop and demonstrate the technological capability. This phase was successfully tested and completed in August 2007.

• GAGAN FOP (Final Operation Phase) – to be implemented for operational use and to be certified by DGCA. This phase is expected to be completed by May 2011.

INR 1.48 Billion has already been spent in the TDS phase and the balance INR 6.26 Billion is to be spent in the FOP phase. Of this, the AAI contribution is expected to INR 5.96 Billion, from its internal resources, and ISRO’s contribution will be INR 1.78 Billion, from ISRO budget. The AAI has already spent INR 1 Billion and ISRO INR 480 million in the TDS phase.

Quietly, the team at BIAL, has been fixing the problems, to produce a smooth running and efficient airport.

On Saturday, 6-Sep-2008, I had the pleasure of visiting the new Bengaluru International Airport as a guest of BIAL Chief Operating Officer Marcel Hungelbuehler and Chief Commercial Officer Manisha Grover. I thank them for the hospitality and the openness.

The BIAL airport is humming like a well timed Swiss watch and almost all the kinks experienced by passengers have been addressed and operational efficiencies attained. Some basic issues are still awaiting action.

But, the leader he is, Marcel, is on a continuous improvement process, aiming for better and better.

Marcel and Manisha gave me full access to the inner workings of the airport. These are the parts of the airport, very few passengers will see, but this is where an airport performs efficiently and earns its money.

Check-in
We began at the check-in area. At 12 Noon, it was quite empty. The CUSS terminals will be up very soon, and "hand baggage only" passengers of the three major airlines at Bangalore, Jet, Kingfisher, and Indian will be the first beneficiaries. I was also informed that Kingfisher has already commenced a "roving" check-in agent who carries a portable device for checking-in passengers. Smooth.

Departure in-line 5 level security check
We carried on to the departure baggage make-up area. BIAL has a Siemens baggage handling system with in-line 5 level security. 3 levels are in the picture below. Level 4 is a hand-held explosive wipe and detection system, and Level 5 involves having the passenger open the bag physically, and if needed, they have a bomb-proof room besides the terminal. The whole system is handled by a highly secured operations centre staffed by BIAL employees. Very automated, very smooth, very fast and very secure.

Baggage area
Once your bags clear the security, they will be carried across to the baggage make-up area. There are three belts and loaders will either load them in trolleys, or put them in baggage containers. There is a scanning system which scans the baggage tags and catalogs the location and container details in to the master database at BIAL. Try to be on time at the gate. If you do not show up, it is very easy for the airline to trace exactly where your bags are, and off-load them in a jiffy.

The departure baggage make-up area has only one deficiency that I could observe. It is just about able to handle the current 4 wide-body flights simultaneously. This will prove to be a limiting factor till BIAL makes its next terminal.

We next proceeded out on the apron, where we watched VT-VJK, the first Kingfisher Airlines Airbus A330-200 aircraft, roll in from London as flight IT002. We were right at the nose. What a beautiful aircraft. Unfortunately, photography at the apron is prohibited. It would have made a great picture. The picture below was shot later. I really hope that the slots are improved at Heathrow. Right now, Dr. Mallya is forced to park his aircraft at both airports for long periods. Aircraft on the ground only cost, not earn, money.

The Passenger Boarding Bridge (aerobridge) was attached within 30 seconds of engine shut down. Passengers started de-planing within 3 minutes of engine shut down, and even though it was a pretty full flight, the last passengers was off within 9 minutes. Great show all around.

We then proceeded in to the arrival baggage area. Kingfisher has contracted all its ground handling to Globe Ground (connected to Lufthansa), and bags started rolling in within 9 minutes of arrival. The last of the bags were on the belt within 20 minutes. From its initial disasters, the ground handling at BIAL has improved phenomenally.

Partly due to environmental concerns, and partly due to the stuffy nature of baggage areas, BIAL has enforced an all electric vehicle policy in their baggage areas. For the few initial months, BIAL did allow diesel belching tractors, but not any more. It was nice to see that even IndiGo, which does its own ground handling, has bought Maini electric tugs. I am not implying that Mr. Bruce Ashby and his team were not environmentally concious earlier.

Runway maintenance
Every Saturday, from 1pm to 3pm, BIAL shuts down its runway for weekly maintenance. An army of dedicated staff, led by Chief Infrastructure Officer Thomas Rueppel and Vice President Hari, descend upon the runway (09-27) and start from both ends.

The runway is checked for friction loss (caused by tyre rubber build-up), and rubber is removed as needed. Then the runway is given a high pressure cleaning and checked for any asphalt removal.

Finally, the markings are re-painted as required. Alongside the truck (not in the photo), is an entire team, that runs, at least half the length of the runway, a good 2km.

There are also maintenance crews who water down the barren earthen patches to prevent sand blowing and the grass. Later, BIAL plans to put grass on these barren patches to check erosion.

Along with automated bird-chasers (common at all airports), there is an entire squad of shotgun wielding "bird guys" who chase away the birds. Sorry no tandoori pigeons or kites.

Great team dedication right from the top to the bottom.

Marcel in the thick of the action.

Maintenance

I have always maintained that Governments in general, and India, in particular, are weak when it comes to on-going maintenance. The private sector is much more committed. But I was really wowed by the way BIAL is maintaining the runway, and the airport. Clearly, their actions demonstrate a long term commitment to Bangalore.

I cannot agree with recent statements calling BIAL airport, shoddy. Sure, the terminal is not an architectural masterpiece, but to me efficiency and value for money, triumph, pomp and flair. The statement is completely unfair to the whole team at BIAL and belittles their efforts, that I have observed.

The Passenger Terminal Building (PTB)
A view of the PTB and the apron area. The little green building to the right is the Fire Station with state of the art fire and rescue trucks. On the extreme right, way out in the distance are the two Cargo Terminal Buildings of AI-SATS and Menzies-Bobba. The new mirror terminal will be constructed to the left of the existing terminal.

Think of the existing terminal as T1-A, and the mirror will be T1-B. The "Express Terminal" will be constructed just to the right of the existing terminal (when viewed from the air side).

However, hearing BIAL's description, I am not impressed. From a PR angle, it is the wrong signal to send. I still feel that it will behove BIAL management to enter in to a partnership with AAI and run the terminal at HAL airport. I can envision BIAL efficiency with HAL location. WOW!!!! For sure, Bangalore will be the envy of India.

Globe Ground, one of the ground handling agents at BIAL, has purchased the top of the line Contrac Cobus 3000 capable of carrying 112 passengers at a time. They cost almost Rs. 20 million each. Along side is the Rs. 6 million version from Ashok Leyland. Both are good. Click here for more details on the Cobus. AI-SATS needs to catch-up to Globe Ground.

Air-side Expansion
While driving around, I observed that the apron extension to the west of the PTB, is on hold. I was told "we are waiting for the UDF issue to be resolved". For brief while, I had the disturbing question floating in my head. Is BIAL out of money ?

I later learnt from some people at the airport (who shall remain anonymous), the apron expansion was given to some fly-by-night contractor and not L&T who constructed the first apron. Cost was the reason, for awarding the contract, and also the contractor fleeing, when he realised the true magnitude of work.

The air-side road leading up to the two cargo terminals is just one lane. I was informed that the road is being widened. Widening this road is critical. It cannot accommodate two pallets simultaneously, so the traffic is uni-directional, and it is impacting the cargo operations. BIAL needs to complete this on a war footing.

We headed back in to the terminal and I visited the fully automated Airport Operations Control Centre (AOCC). Arriving passengers, can see it from the outside. Just head to the extreme right of the building instead of going straight down the middle into the main arrival area.

All the airport apron operations, airlines' flight dispatchers, ground handlers, are all linked in to each other. Flight schedules are constantly updated. The ATC is tied in to AOCC. When a flight is on final, i.e. 10 minutes out, the system is auto-updated. Gates that were previously assigned, are checked for any conflicts, and the automated systems ensure optimal use of space. Other airports can take a page out of the optimisation manual, from BIAL. It was really very impressive and heartening at the same time. It now makes sense how BIAL can operate so close to full utilisation. However, it does leave thinner margins to accomodate any significant disruption or flight delays.

The new BIG toilets
As you head to the arrivals domestic arrivals hall, on the left is the new BIG spanking new toilets. There are 36 urinals, and I did not count the number of water closets. This is a big relief to domestic passengers. I was informed that the international side is already adequately catered for.

In the arrivals hall there is a new "VIP" lounge being constructed. This is meant for the "lesser" VIPs who are not entitled to the VIP terminal. This could partly explain why we kept hearing from our VIP "leaders" about the "lack of required facilities" at BIAL.

Ongoing issues and future plans
Over a brief lunch, I had a chance to ask about ongoing issues, UDF, Airport City, and the future plans of BIAL and the AAI assessment of the terminal.

BIAL does not agree with the conclusions of the AAI. There are certain assumptions made, that may not apply to BIAL. I feel it is an issue for AAI and BIAL to sort out.

The airport hotel construction is proceeding, but I did not see or hear of much progress on anything else. The airlines' offices building is on track, albietly delayed, but the temporary cargo village meant to house cargo and customs agents, is way behind its promised July delivery. There were some operational and administrative issues which have been sorted out. Unlike the airlines, to whom BIAL has given its own offices, the agents are working in gruelling conditions, having to commute from their city offices near HAL, daily. It was gratifying to hear the issues have been resolved and hopefully the offices will open within the next month.

BIAL is insistent on the UDF as proposed. I raised the issue of their development of non-aero revenues, including the SEZ and Airport City, which would help raise revenues and reduce UDF. BIAL prefers this option also, but the stumbling block is BIAPPA, the Bangalore International Airport Area Planning Authority. There is no master plan in place, and BIAL does not know how to get permission for construction. BIAL claims they cannot construct any non-aero commercial building in absence of bye-laws. The BIAPPA website features a set of bye-laws. The lack of progress can be partly attributed to the lack of a serious push on BIAL's part. Support to BIAL is available, but they, have to show genuine interest. Industry bodies like BCIC will be glad to help if requested to from BIAL.

There is inadequate parking or facilities for non-passenger users of the airport (cargo, employees, etc.). BIAL does not provide any shuttle bus service, and is depending on individual contractors, and they do not. There was an ignorance of ground realities, in some of the BIAL management, and this is not acceptable. I got the impression that, BIAL feels, it is responsible only for the passenger terminal. The simple fact of the matter is, they are the concessionaires and administrators of the whole 4,000 acres. It is incumbent on BIAL to provide adequate infrastructure and connectivity INSIDE the entire area and it has to ensure the complete comfort of ALL USERS.

The speaker system at the departure hall is still a pain point for BIAL, and the team is working towards a solution. The small font on the flight information displays is something not yet fully appreciated. May be travellers can give feedback to BIAL to appreciate this fact better.

The outside of the terminal is not as well maintained as the inside. The difference in the gleam of the floors is significant. I am sure BIAL will get to it soon. Chairs have been put outside the arrival gate.

The mirror terminal will be constructed to the east of the current terminal, which will double its capacity. The existing parking lot will become a multi-level car park. It is not yet been decided whether to put the train station at ground level or underground.

I proposed to BIAL some ideas received from knowledgeable folks at Praja and Skyscraper City, such as a dedicated dual level operation; arrivals at lower level and arrivals at upper level. BIAL is taking inputs, but is keeping the plans close to its chest right now.

One cannot fault them. Trust will take time, and engagement is the method.

Conclusion
The airport is the first and last impression a traveller has of the city, which makes it vital in any city's infrastructure. Warmth, comfort, efficiency, cost, connectivity (location), future-proofing, and engagement with local industry, are the key benchmarks.

The entire team at BIAL has been quietly making steady improvements to the airport. They are right up there with the best of the airports in terms of efficiency and engagement. High marks for warmth and comfort. Cost and future-proofing are weak areas that BIAL is addressing. Location and connectivity, while not BIAL's choice, require addressing; it is vital to their long term success.

Pentagon hands tanker tangle to next president
By Andrea Shalal-Esa and Jim Wolf

WASHINGTON (Reuters) - The U.S. Defence Department has ended for now a $35 billion (19.9 billion pound) transatlantic aerial-refuelling competition, handing a nagging seven-year headache to the next administration and boosting Boeing Co's (BA.N: Quote, Profile, Research) hopes to keep Airbus planes out of the Air Force fleet.

Defence Secretary Robert Gates told Congress on Wednesday the Pentagon was dropping plans to pick between revised tanker proposals from Boeing and Northrop Grumman Corp (NOC.N: Quote, Profile, Research) by January 20, when President George W. Bush leaves office.

The Air Force in February awarded the $35 billion, 179-plane program to a team of Northrop and Europe's EADS (EAD.PA: Quote, Profile, Research), parent of Boeing commercial archrival Airbus.

After Boeing protested its loss on procedural grounds, a congressional umpire found the Air Force made "significant errors" in evaluating the rival bids.

The Pentagon responded by preparing for a new round, spelling out more clearly the expanded fuel-carrying capabilities it was seeking, among other things.

Boeing, sole supplier of tankers to the U.S. Air Force for 50 years, is seeking to curb EADS' penetration of the rich U.S. military market. Also at stake are EADS plans to move production of A330 freighters from France to Alabama, partly to cash in on exchange rate fluctuations.

The tanker bidding has been complicated by lawmakers' efforts to bring home jobs and a renewed "Buy America" debate about protecting key aerospace manufacturing capabilities.

The Air Force calls acquiring new tankers its No. 1 acquisition priority. The new fleet would phase out Boeing-built KC-135 tankers, which have an average age of 47 years. Tankers are used to refuel other planes in mid-air, a critical component of projecting U.S. power around the globe.

Rather than hand over "an incomplete and possibly contested process," Gates said he wanted to give the next administration a free hand to determine the military requirements, funding levels and how to weigh the bids.

PRESIDENTIAL POLITICS

Democratic presidential candidate Sen. Barack Obama of Illinois, where Boeing is headquartered, believes the competition "will benefit from a fresh review," said Wendy Morigi, an Obama campaign spokeswoman.

Obama "will work to ensure that this review puts our national security and the American taxpayer first," she said in an e-mailed response. "Senator Obama is committed to getting this important contract right and to making sure that we are providing our men and women in uniform with the equipment and support they need."

Representatives of Republican presidential hopeful John McCain did not immediately respond to a request for comment.

As a member of the Senate Armed Services Committee, McCain led a drive in 2003 to kill an initial $23.5 billion Air Force plan to lease and buy 100 modified Boeing 767s as tankers.

McCain of Arizona denounced the original no-bid, sole-source plan as a taxpayer "ripoff" and sweetheart deal for Boeing, then reeling from drops in demand for commercial airliners after the September 11, 2001 attacks.

The proposed lease-purchase deal collapsed in 2004 amid a scandal that sent two Boeing executives, including the Air Force's one-time No. 2 arms buyer, to prison on conflict of interest charges.

MISTAKES AND MISSTEPS

"Over the past seven years the process has become enormously complex and emotional -- in no small part because of mistakes and missteps along the way by the Department of Defence," Gates told the House Armed Services Committee while discussing the wars in Iraq and Afghanistan.

"It is my judgment that in the time remaining to us, we can no longer complete a competition that would be viewed as fair and objective in this highly charged environment," he said.

What Gates called a "cooling off" period was a big gain for Chicago-based Boeing. It had threatened to withdraw from the now-cancelled competition unless given six months to prepare a new bid. It said the Air Force had made clear it was now seeking a larger plane than the modified 767 it originally offered.

Boeing cheered Gates' decision, calling it in U.S. forces' best interest to give "the appropriate time for this important and complex procurement to be conducted in a thorough and open competition."

Northrop Grumman, on the other hand, said it was extremely disappointed, "especially on behalf of our men and women in uniform who will now be denied a critically needed new tanker for years."

EADS had no immediate comment. Northrop's tanker would use an Airbus A330 airframe that would be assembled in Mobile, Alabama.

HANDICAPPING THE NEXT STAGE

The A330s are currently put together in Toulouse, France, using mainly French, German, British and Spanish parts. The Pentagon issued a stop-work order on Northrop's contract after Boeing challenged the choice. Boeing has been considering substituting its bigger 767-400 or even the 777 aircraft, in place of its 767-200ER model.

"Given McCain's history in regard to this program, one might handicap a slight advantage to Northrop/EADS should he be elected," said Harry Nourse of Bank of America Securities.

"If Obama wins, you could see some implementation of the 'Buy America' philosophy, which might favour Boeing," he said.

(With additional reporting by Bill Rigby in New York and Tim Hepher in Paris; editing by Tim Dobbyn)

© Thomson Reuters 2008 All rights reserved.
http://uk.reuters.com/article/businessNews/idUKN1041158420080911?sp=true

The volatility in aviation turbine fuel (ATR) has triggered GMR Hyderabad International Airport (GHIAL) to change gear from aero to non-aero operations.

Currently, revenues from aero operations contribute to three quarters of us total revenues. The rest comes turn non-aero operations. GHAIL is looking at reversing this ratio to offset the turbulence in global ATF prices. It is trying to emulate best practices adopted by some of the leading international airports in the world such as Memphis airport, which get a large chunk of their revenues from non-aero operations.

As part of its new strategy, the airport is exploring a tie-up with Agriculture and Processed Food Export Development Agency (APEDA) and freighter companies to enhance revenues from this segment according to a senior official in GMR.

“Our teams have gone to Memphis airport In the US, the global cargo centre, to study the cargo operation models. They will submit a detailed report after studying other airports in the US and Europe in the coming three months. We will rope in a consultant to design a plan to take the idea forward,” he said. With the presence of Federal Exchange and the largest cornea bank in the world, Memphis airport is the nerve centre of cargo operations across the world. For instance, 5,000 faulty laptops are brought to Memphis each day and airlifted overnight after repair at the airport. The GHIAL is exploring such a model here.
The airport will also open a separate website to facilitate banking transactions and cargo operations online. The Greenfield airport in Hyderabad has seen a drastic dip in air transport movements (ATM5) during the last few months due to the volatility in prices of aviation turbine fuel (ATF).

The airport had 260 to 270 ATMs a day in Jun-08. This has dropped to 210-220 in August, leading to a dip of 50 ATMs a day. Several airlines planning to start new trips have also defined their plans. “British Air for instance, has postponed new trips from Hyderabad from October to December this year said a GMR official

‘According to him, the airport expects a 15% increase in passenger traffic this year against 35% last year “ATF sale volumes have also come down from 800-850 kilo liters a day to 500 kilo liters a day in August” he said. Although the state-owned oil marketing companies cut ATF prices by over 16% on Sunday, this may not translate into cheaper airfares. The airport currently records eight million passengers a year and it is forecast to reach l2 million by20l0.

(c) Centre for Asia Pacific Aviation.

Jet Airways, announced, they will re-introduce their daily operations on the Pune-Bengaluru-Pune sectors, becoming the only airline to offer its passengers a same day return service between the two cities, effective September 11, 2008

Jet Airways will commence daily operations on the sector with Boeing 737 aircraft, complementing the airline’s existing (six days a week) service on the sector.

Flight 9W 460* (Pune-Bengaluru) will depart Pune at 0620 hrs, arriving in Bengaluru at 0740 hrs. On the return leg, flight 9W 459 (Bengaluru-Pune) will depart Bengaluru at 2100 hrs, arriving in Pune at 2220 hrs.

With the launch of these new, daily flights, Jet Airways will offer passengers an early morning departure from Pune and arrival in Bengaluru. The airline will also operate the last direct service out of Bengaluru to Pune, offering business travellers a full day to complete their work and return home, without the bother of an overnight stay.

*Subject to Government Approvals