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 FOR IMPROVEMENT OF MAJOR AIRPORTS

WORLDWIDE
Sandeep Singh-

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. The number of full-length runways;

2. The number of gate positions with and without bridges; and
3. The area of the airfield.
4. The Aero and Non Aero income.
5. The Air Traffic Statistics.
6. The Air Cargo Statistics.
7. The 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 non-
aeronautical 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 Airport Pvt.

Limited (DIAL)
• DIAL is a consortium consisting of:-

• GMR 50.1%
• Fraport AG 10.0%
 • Malaysian Airports Holding Berhad 10.0%
• IDF 3.9%
• AAI 26.0%

• 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 11-
29 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 public-
private 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 security unit of
the Metropolitan Police, although the army, including armored vehicles of the
Household Cavalry, has occasionally been deployed to the airport during periods of
heightened security. Heathrow's reputation for thefts has led to it sometimes being
referred to as “Thiefrow”.
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 dual-
runway 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 low-
cost 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 air-
conditioned, 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
Heathrow,
Airport DIAL London
Passenger Movement Increased6% Decrease,1.4%
Cargo Tonnage Flat Increase6.6%
Air Traffic Movement Increased8% Decreased0.5%

BENCHMARKING

DIAL(Rs Heathrow,
Airport cr) London(Rs Cr)
Net Income 472.93 10333.6

Expenditure 374.78 8165.9

Depriciation and Ammortisation 9.88 2099

Profit before Taxation 88.28 2167.6

Share Capital 2000 3153.6

Personnel/Staff Cost 172.51 1659.8

Net Expenditure 374.77 8166

Subsidiary Companies 2

KPI
KPI DIAL HEATHROW
Total Revenue Per ATM 2052 215858
Total Revenue Per Passenger 188 1542
Aero Revenue 650,000,000 264,611,368
12
ATU 52,300,000 7,868,780
Aero Revenue/ATM 14,929 90.14
Total Revenue/000 ATUs 4051 407526.2
Aero Revenue as % of Total Cost 62.00% 288.20%
Aero Revenue as % of Total Revenue 36.00% 48.10%
Aero Revenue/Passenger 156 0.632
Commercial Revenue/Passenger 273 9.07

COST KPI
Cost KPI DIAL HEATHROW
Total Cost/ATM 24410 38141
Total Cost/Passenger 250 267
Staff Cost/Passenger 55 266
Staff Cost as % of Operating & Staff
Cost 63.00% 99.80%

PROFITABILITY RATIOS
DIAL HEATHROW
Operating Profit 9% 83%
Operating Profit/passenger 18 16.93
Passengers/Employee 2573 16145
Passengers/ATM 98 142.6
Capex 44.00% 113.70%
EBIDTA as a % of Turnover 20.00% 83.30%
 Benchmarking of DIAL V/S CHANGI
(SINGAPORE)

Changi,
Airport DIAL Singapore
Increased
Passenger Movement 6% Decreased0.6%
Cargo Tonnage Flat Decreased21.4%
Increased
Air Traffic Movement 8% Increased 7.4%

Changi,
DIAL(Rs Singapore(R
Airport cr) s Cr)
Net Income 472.93 2362
Expenditure 374.78 1880
Depreciation and Amortization 9.88 147.1
Profit before Taxation 88.28 627.4
Profit after Taxation 56.66 486.6
Share Capital 2000 826.1
Personnel/Staff Cost 172.51 1029.4
Net Expenditure 374.77 1895.2
Subsidiary Companies 2
Bank Balance 32.21 98.8
Interest Income 0.23 41
Operating profit before working
capital changes 63.24 211.5
Cash generated from operations 5.28 192
Tax Paid 12.9 42.6
Net Cash used in investing
activities 3188.35 42.6
Net Cash from financing activities 3288.5 137.5

(Key Performance Indicator) KPI

KPI DIAL CHANGI
Total Revenue Per ATM 2052 10181
Total Revenue Per Passenger 188 638.3

Aero Revenue 650000000 14363937

ATU 52300000 71181866
Aero Revenue/ATM 14929 28683
Total Revenue/000ATUs 4051 5649.12
Aero Revenue as % of Total Cost 0.62 0.858
Aero Revenue as % of Total Revenue 0.36 44.1
Aero Revenue/Passenger 156 181.6
Commercial Revenue/Passenger 273 219.5

COST KPI
Cost KPI DIAL CHANGI
Total Cost/ATM 24410 33565
Total Cost/Passenger 250 211.5
Staff Cost/Passenger 55 33.61
Staff Cost as % of Operating & Staff 0.63 0.248
Cost

PROFITABILITY RATIOS
Column1 DIAL CHANGI
Operating Profit 9% 49%
Operating Profit/passenger 18 6.03
Passengers/Employee 2573 25841
Passengers/ATM 98 158.9
Capex 44.00% 53%
EBIDTA as a % of Turnover 0.2 0.669

Benchmarking of DIAL V/S HKIA

Airport DIAL HKIA

Passenger Movement Increased6% Increase1.7%
Cargo Tonnage Flat Increase3.1%
Air Traffic Movement Increased8% Increase2.0%

DIAL(Rs
Airport Cr) HKIA(RSCr)
Net Income 250 2808.9
Expenditure 221 1069.6
Operating Expenses 72 1069.6
Depriciation and Ammortisation 7.24 701.3
Profit before Taxation 17.71 1008.24
Profit after Taxation 16.71 840.2
Share Capital 2000 19004
Personnel/Staff Cost 47.52 346
Net Expenditure 221.1 1069.6
2
Subsidiary Companies (0.10 each)
Bank Balance 24.38 214.55
Tax Paid 1 168.05
Repairs And Maintainance 23 12.15
Investment On Tangible Assets 102.34 29126.7
Investment On Intangible Assets 195.5 174.25
Current Liabilities 544.12 626.8

KPI
DIAL(Rs HKIA(RS
KPI Cr) Cr)
Revenue Per ATM 2052 9363
Revenue Per Passenger 188 597.44

Aero Revenue 650,000,000 20,774,421

ATU 52,300,000 103,600,000
Aero Revenue/ATM 14,929 76.94
Total Revenue/000ATUs 4051 37300
Aero Revenue as % of Total Cost 62.00% 72.30%
Aero Revenue as % of Total Revenue 36.00% 48%
Aero Revenue/Passenger 156 0.49
Commercial Revenue/Passenger 273 0.53

Cost KPI
DIAL(Rs
COST KPI Cr) HKIA(RSCr)
Total Cost/ATM 24410 8934.5
Total Cost/Passenger 250 61.5
Staff Cost/Passenger 55 7.22
Staff Cost as % of Operating & Staff Cost 63.00% 20.00%

PROFITABILITY RATIOS
DIAL(Rs
KPI Cr) HKIA(RSCr)
Operating Profit 9% 34%
Operating Profit/passenger 18 5.02
Passengers/Employee 2573 40824
Passengers/ATM 98 154.1
Capex 44.00% 0.00%
EBIDTA as a % of Turnover 20.00% 61.00%

Benchmarking Of Airports
Delhi IGI BAA Singapore, Amsterda Hong Dubai,
Airport London, Changi m, Kong, Internatio
Heathrow Airport Schiphol Internatio nal Airport
Airport Airport nal Airport
Runways 3810m 3901m 4000m 3800m 3800m 4000m
(Asphalt) (Grooved (Concrete) (Asphalt) (Asphalt) (Asphalt)
Asphalt)
2813m 3660m 4000m 3500m 3800m 4000m
(Asphalt) (Grooved (Concrete) (Asphalt) (Asphalt) (Asphalt)
Asphalt)
4430m 2750m 3453m
(Asphalt) (Asphalt) (Asphalt)
3400m
(Asphalt)
3300m
(Asphalt)
2014m
(Asphalt)
ATM 2,30,000 4,78,693 2,32,000 4,58,050 3,00,000 260,530
Passeng 25Million (67Million) 37Million 47Million 47.1Million 37.5Million
er
Moveme
nt

Capacity 12Million >70Million 68.7 Million 87Million 62 Million

by 2020
Air .43Million 1.6million 1,9Million 1.5Million 3.6Million 1.824Million
Freight

Operating Ratios

KPIs
CHAN HEATHR
DIAL GI HKIA OW
Total Revenue Per ATM 2052 10,181 9363 215858
Total Revenue Per Passenger 188 638.3 597.44 1542

REVENUE KPIs
CHAN HEATHR
DIAL GI HKIA OW
27,36 14,363,9 20,774,4 264,611,36
Aero Revenue 0,000,00 37 21 8
71,181,8 103,600, 127,86
ATU 52,300,000 66 000 8,780
Aero Revenue/ATM 14929 28683 76.94 90.14
Total Revenue/000ATUs 4051 5649.12 37300 407526.2
Aero Revenue as % of Total
Cost 62.00% 85.80% 72.30% 288.20%
Aero Revenue as % of Total
Revenue 36.00% 44.1 48% 48.10%
Aero Revenue/Passenger 156 181.6 0.49 0.632
Commercial
Revenue/Passenger 273 219.5 0.53 9.07

COST KPIs
CHAN HEATHR
DIAL GI HKIA OW
Total Cost/ATM 24410 33565 8934.5 38141
Total Cost/Passenger 250 211.5 61.5 267
Staff Cost/Passenger 55 33.61 7.22 266
Staff Cost as % of Operating &
Staff Cost 63.00% 24.80% 20.00% 99.80%

PROFITABILITY RATIOS
CHAN HEATHR
DIAL GI HKIA OW
Operating Profit 9% 49% 34% 83%
Operating Profit/passenger 18 6.03 5.02 16.93
Passengers/Employee 2573 25841 40824 16145
Passengers/ATM 98 158.9 154.1 142.6
Capex 44.00% 53% 0.00% 113.70%
EBIDTA as a % of Turnover 20.00% 66.90% 61.00% 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