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Aerotropolis Project

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ABSTRACT

Since 2000 Indian aviation industry has been recording steady growth. The role of the private airline sector has become very significant with the increase in domestic air traffic and the increased purchasing power of the growing middle-class. The arrival of LCCs (Low Cost Carriers) revolutionised Indian aviation industry and air travel hit an all-time-high. As more and more players arrived at the aviation scene the competition grew. Heavy price-cuts and discount offers against a background of rising operational costs proved detrimental, with almost every airliner reporting huge losses. The industry, taking cue from the global developments had moved towards consolidation of stakes so as to scale down excess competition. Many mergers and acquisitions took place which may result in significant synergies in the industry. This strategy to tie-up with the competitor rather than bleed millions by way of losses is seen as an exemplary move towards healthy competition. The opportunities as well as the challenges these mergers bring to the aviation industry is to be seen. This is about the air-side of the coin. And the land-side development mainly based on the revenue generated by the airport authorities.
The study mainly goes through the landside development constituting the study of public private partnership in development of the airport city. This report mainly consists of the study of the industrial sector and how the development is sustained. Organization selected for the study is “CHENNAI INTERNATIONAL AIRPORT”.A brief structured input is given for the organizational information. Few marketing strategies are developed to improve the airport condition. The scope of the study is confined to the development of strategies. Hence the further study can be made up on actualization of the strategies.

1. INTRODUCTION

Air India was set up by J.R.D. Tata, who ran it successfully until it was nationalized in1953. In the 1960s as the national flag-carrier was affectionately known, was flying to 32 destinations (it now flies to 46 destinations) and making profits .For many years in India air travel was perceived to be an elitist activity people who could afford it were the rich and powerful. In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth. Until less than a decade ago, all aspects of aviation were firmly controlled by the Government.
In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953 this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issuing all rules and procedures governing Indian airports and airspace. Finally, the Airports Authority of India was entrusted with the responsibility of managing all national and international airports and administering every aspect of air transport operation through the Air traffic Control.
With the opening up of the Indian economy in the early Nineties, aviation saw some important changes. Most importantly, the Air Corporation Act was repealed to end the monopoly of the public sector and private airlines were reintroduced. Domestic liberalization took off in 1986, with the launch of scheduled services by new start-up carriers from 1992. A number of foreign investors took an interest. Modiluft closed after failing to meet financial obligations to lassoers and its technical partner, Lufthansa. In1996-1998, Tata and SIA tried to launch a domestic carrier, but the civil aviation minister had publicly stated his opposition on numerous occasions (Airline Business 1998).
The Indian government introduced the open sky policy for domestic players in 1991 and partial open sky policy for international players only in November 2004. Increasing liberalization and deregulation has led to an increase in the number of players. The industry comprises three types of players full cost carriers, low cost carriers (LCC) and many start-up airlines that are making/planning an entry.

As business markets become national and international in scale, airports are increasingly being viewed as catalysts for local economic development. Their ability to generate jobs and attract new business is being used in many locations as a justification for public investments in new airport construction and expansion. Anticipation of new business activity also calls for appropriate land planning. Yet few types of economic development have been as poorly predicted as development around airports. At some airports, large tracts of surrounding land reserved for development have remained vacant for decades. Unforeseen rapid development around other airports has saturated the area and choked area roads with traffic. In some cases, the area around a new airport has had both situations occur over a period of 25 years.
In general, we can identify business activities attracted to airport areas as either new activities attracted to the area or expansion of existing activities of a type already occurring in the metropolitan area.
New Activities may be attracted from outside of the area because of the prestige and improved customer access provided by enhanced national and international air service For large commercial airports, these new activities may include: (a) regional or national corporate headquarters of large national and multi-national companies; (b) trade and merchandise centres marketing retail or industrial products; (c) service companies that are dependent on air service to reach their markets; and/or (d) airlines and related activities. Expansion of activities in the metropolitan area occur for types of businesses that are users of airport services, suppliers to markets generated by the airport, or businesses that can take advantage of the local transport and other supporting infrastructure developed primarily to serve the airport. These are typically: (a) high-tech electronics and specialised equipment manufacturers, (b) communications companies, (c) warehouse and delivery services, and
(d) a variety of specialised business services. Not only these categories, the industry may attract lot many foreign investments and also cash flow into the country.
As the country is experiencing a fiscal deficit, there should be cash flow into the country so as to sustain our rupee performance in the international market. The services sector contributes a major part to our GDP. Hence as a part of improvement of services sector, the aviation industry must readily welcome the PUBLIC PRIVATE PARTNERSHIP to attract more customers domestically and internationally too.
Hence the opportunities and threats of the airport industry when entered into the public private partnership are been discussed in the report.

2. OBJECTIVES OF THE STUDY

The objectives of the study are as follows. * INTRODUCE THE INDUSTRY: the basic industry profile is briefly discussed in the report. Although usually differences exist among competitors, each industry has its own set of combat rules governing such issues as product quality, pricing, and distribution. This is especially true for industries that contain a large number of firms offering standardized products and services. Hence the threats opportunities and market players is discussed in the report. * ORGANIZATION AQUAINTANCE: to get acquainted with the organization that is selected for the study. Rapidly changing information technologies urge the organizations to adapt to modern technological solutions. However is it always necessary to buy the most up-to date solutions A proper implementation of information technologies should fit organization activities by performance and cost. An analysis of organization activities would help to find a solution that corresponds to organization needs. Hence study is done whether the PPP can be adopted by company or not. * BASIC OVERVIEW OF THE PRIVATIZATION OF INDUSTRY: To have an overlook of the PPP-PUBLIC PRIVATE PARTNERSHIP in the current airline industry. In specific situations, specialisation of the regional economy or specialisation of the airport may also attract business activities concentrated in other categories. Hence all the opportunities are discussed. * DEVELOP MARKETING STRATEGIES: Marketing strategies are detailed and discussed according to the organization chosen. Creating a solid marketing plan can be the difference between a successful marketing campaign and a failed one. As most people have already experienced, marketing can be an expensive and complicated endeavour. Hence all inputs are kept perfectly to give good marketing strategic plan. * RECOMMEND IDEAS: ideas that are been generated are been recommended to the organization. An innovative idea can change the company’s growth rate to a great extent, hence considering that the ideas generated are worth of recommending to a company all the ideas are recommended to the organization.

3. SIGNIFICANCE OF THE STUDY

The study consists of various aspects such as the industry recognition which is highly important to get through. Although usually differences exist among competitors, each industry has its own set of combat rules governing such issues as product quality, pricing, and distribution. This is especially true for industries that contain a large number of firms offering standardized products and services. Hence the threats opportunities and market players is discussed in the report.
It also go through the organizational profile, to get acquainted with the organization that is selected for the study. Rapidly changing information technologies urge the organizations to adapt to modern technological solutions. However is it always necessary to buy the most up-to date solutions A proper implementation of information technologies should fit organization activities by performance and cost. An analysis of organization activities would help to find a solution that corresponds to organization needs. Hence study is done whether the PPP can be adopted by company or not.
Development strategies are hence discussed, as Creating a solid marketing plan can be the difference between a successful marketing campaign and a failed one. As most people have already experienced, marketing can be an expensive and complicated endeavour. Hence all inputs are kept perfectly to give good marketing strategic plan.
The study mainly concentrates on improvement of the organization as well as the growth of the industry. So it is ensuring value added discussion for future study.

4. INDUSTRY PROFILE
INTRODUCTION
India is expected to witness substantial growth and development in the aviation industry, and would be amongst the top five nations as far as the aviation sector is concerned, in the coming ten years, according to researches by experts.
Emphasizing on how Indian is the 9th largest civil aviation market in the world, currently, Ms Pratibha Patel, the President of India has highlighted the fact that the international traffic will exceed 80 million passengers a year in a decade from now, as recent studies suggest that domestic air traffic will touch 160-180 million passengers a year, in the next 10 years.
THE NEXT BIG THING- THE AVIATION INDUSTRY
The aviation sector with a massive growth of 18 per cent in domestic market is expected to generate approximately 2.6 million jobs in the next one decade, thus providing employment opportunities on a large scale. Considering the statistics above and the steep rise in the industry today, India is poised to emerge as the third largest aviation market in the world by the end of this decade says Dr Nasim Zaidi, Secretary, Ministry of Civil Aviation. The US-based electrical components company, Eaton Corporation foresees a wide range of opportunities for itself in India's civil and military aerospace story which is still in the process of growing , according to Joe-Tao Zhou, APAC President, Aerospace Group, Eaton Corporation, who opines that "India is expected to emerge as one of the largest aviation markets in the world”.
The Airports Council International has ranked the Indira Gandhi International Airport (IGI) in New Delhi, India, as the second best airport in the world for 2011. Having handled a record number of 35 million passengers in 2011, The Indira Gandhi International Airport scored this distinction in the category of airports with 25-40 million passengers per annum. Moreover, The Indira Gandhi Airport has an annual passenger capacity of over 60 million out of which terminal 3 can alone handle a mighty crowd of 34 million passengers, In addition to which the airport has also handled over 600,000 tonnes of cargo and over 300,000 aircraft movements in 2011.
MARKET SIZE
The rapidly expanding aviation sector in India handles about a staggering 2.5 billion passengers across the world in a year; moves 45 million tonnes (MT) of cargo through 920 airlines using 4,200 airports and deploys 27,000 aircraft. Today, 87 foreign airlines fly to and from India and five Indian carriers fly to and fro across 40 countries in the world.
A data released by the Directorate General Civil Aviation (DGCA) indicates that about 5.33 million passengers were carried by domestic airlines during January 2012 which is a steep of 8.06 per cent rise against 4.94 million during the corresponding period of previous year. The data released by Department of Industrial Policy and Promotion (DIPP), has shown The Indian Air Transport (which includes air freight) has reportedly attracted a huge foreign direct investment (FDI) worth US$ 429.70 million from April 2000 to December 2011)
In addition to the 10 per cent increase in the number of international passengers last year, a further increase up to a 10-12 per cent range over the next 12 months is expected. The report '2011-12 Aviation Industry Outlook' by Centre for Asia Pacific Aviation (CAPA) India has stated that the Private carriers are supposedly estimated to post a combined profit of US$ 350 million – US$ 400 million for the financial year ending March 31, 2012, according to a report titled and the firm expects the phenomenal increase in the domestic traffic, which could be as high as 20 percent.

MARKET PLAYERS * An official of the Eurocopter, the global leader in helicopters has revealed that the company intends to focus on new markets in India in the emergency medical services, utility, law enforcement and search and rescue areas, while maintaining its leadership position in the passenger, private, oil and gas and VIP markets. * The first 100 per cent private airport in the country is likely to become operational in Karaikal, an enclave of Puducherry in Andhra Pradesh, in another 24 months, as per a top official of the Super Airport Infrastructure Pvt Ltd, the developers. The first phase of construction is estimated at Rs 150 crore (US$ 30.06 million) for a 1.8 kilometres (Kms) runway * The new domestic terminal building at BijuPatnayak Airport at Bhubaneswar, is likely to be completed by August 2012, and will cater up to 800 passengers from the existing capacity of 500 of the present terminal building. The cost of the completion of the new terminal building will sum up to Rs 145.54 crore (US$ 29.17 million) * The MAS GMR Aero Technic (MGAT), the aircraft maintenance, repair and overhaul (MRO) complex at the Rajiv Gandhi International Airport (RGIA) in Hyderabad was inaugurated by MrAjit Singh, Minister of Civil Aviation. The MRO facility, a fully-owned subsidiary of MAS GMR Aerospace Engineering Co (MGAE), was set up at an extensive investment of around Rs 350 crore (US$ 70.14 million). * The Joy Alukkas Group, A reputed Kerala-based gold jewelry retail chain, plans on investingRs 100 crore (US$ 20.04 million) in its aviation wing by the next year in an attempt to offer exclusive air charter services to the passengers across various destinations in the country and abroad, in addition to helicopter tours within Kochi. The Group is also said to launch its helicopter services in March 2012.

Indian hospitality sector contributes 8-9 percent of the country’s GDP. The sector encompasses travel and tourism and major segments that fall under this category include accommodation and catering (hotels, restaurants), transportation (cruise, railway, rentals, airline companies), travel agencies and tour operators.
The tourism and hospitality sector together contributed US $32.7bn in 2011, and registered a CAGR of 13 percent. Currently, India has 114,000 hotel rooms, which stands 150,000 rooms short in meeting the current requirement. Thus, the growth opportunity for this sector is immense, but is tangled with challenges across parallel sectors and the overall economy.
According to estimates provided by World Travel & Tourism Council (WTTC), contribution of travel and tourism to nation’s GDP will grow consistently in the next decade though this growth opportunity will be closely linked to the growth of India’s hotel and restaurant business.
Indian aviation sector has witnessed a phenomenal growth chart in the last decade. Today, India is the 9th largest civil aviation market in the world and ranks fourth in domestic passenger volumes with a market worth of US $12bn. As per AAI, passenger handling capacity has risen two-fold from 72 million (FY 06) to 143 million (FY 11), and freight traffic has risen from 1.5 million MT (FY ‘06) to 2.3 million MT (FY ‘11).
The Airport Authority of India (AAI) was the only major player involved in developing and upgrading airports in India for a long time, but private sector participation has increased post liberalisation. Major private sector players in aviation are GMR Infrastructure, GVK, Siemens, Larsen & Toubro Ltd., Maytas Infra Ltd., and Unique Aviation Services Pvt. Ltd.

CHALLENGES * Hotel industry is prone to hurdles like poor infrastructure, high cost of land procurement and multiple licences as well as levies. * High inflation, high interest rates and absence of policies being issued by the government is hampering growth prospects. * Slow economic growth in developed countries like US and Euro zone will greatly impact the travel and tourism sector, and consequently, also the hospitality sector. * Talent management is a major challenge for this sector. Inadequate supply of talent coupled to increased competition within the sector for available resources has made attrition a cause of concern.
GOVERNMENT INITIATIVES DRIVING THIS SECTOR’S GROWTH * Government’s collective investment on tourism and hospitality sector has risen at a CAGR of 15.4 percent during 2005-11. * Ministry of Tourism set up a Hospitality Development and Promotion Board to monitor and facilitate hotel project clearances/approvals. * Government of India (GOI) continues its focus on airport infrastructure development as part of the 11th Five Year Plan (2007-12). * Liberalisation and Open Sky Policy has led to increased traffic rights under bilateral agreements with foreign countries. Encouragement towards 100 percent FDI in aviation. * Tax exemption for airport projects for a period of ten years. * Policy support and demand growth is increasing investment potential.

EMERGING TRENDS IN THE SECTOR * High disposable incomes and growth of low-cost airlines in India will lead to a rise in domestic travel. This growth will be closely linked to the growth of India’s hotel and restaurant business. * Niche offerings like medical tourism and eco tourism are expected to create more demand.Increase in the number of people travelling by air, both for business and travel, along

PUBLIC | | | PUBLIC PRIVATE PARTNERSHIP IN AIRLINE INDUSTRY
Of a total number of 454 airports and airstrips in India, 16 are designated as international airports. The Airports Authority of India (AAI) owns and operates 97 airports. A recent report by Centre for Asia Pacific Aviation (CAPA), Over the next 12 years, India's Civil Aviation Ministry aims at 500 operational airports. The Government aims to attract private investment in aviation infrastructure. India has been witnessing a very strong phase of development in the past few months. Many domestic as well as international players are showing interest in the growth and development of the aviation sector with immense focus on the development of the airports. Indian private airlines Jet, Sahara, Kingfisher, Deccan, Spicejet - account for around 60% of the domestic passenger traffic. Some have now started international flights. For the next years to come India is poised with strong focus on the development of its airport to meet the international standards. The government is planning modernization of the airports to establish a standard. The newly developed airports will help releasing pressure on the existing airport in the country.PLANS
A projected investment of USD 8.5 billion has been planned for the development of Indian airports during the 11th plan. Mumbai and Delhi airports have already been privatized. These two airport are being upgraded at an estimated investment of US$ 4 billion for the period 2006-16. Development of airport infrastructure is a focus area for the Government. There has been a significant uptrend in domestic and international air travel.

AAI has planned a heavy investment of USD 3.07 billion over the next five years. Out of it 43 per cent will be for the three metro airports in Kolkata, “Chennai” and Trivandrum. The rest will be invested in upgrading other non-metro airports and in the modernization of the existing aeronautical facilities. * Passenger traffic is projected to grow at a CAGR of over 15% in the next 5 years. It is estimated that the data will cross 100 million passengers per annum by 2010 * Cargo traffic to grow at over 20% per annum. over the next five years, crossing 3.3 million tonnes by 2010 * Major investments planned in new airports and up gradation of existing airports * 100% FDI is permissible for existing airports; FIPB approval required for FDI beyond 74%. * 100% FDI under automatic route is permissible for greenfield airports. * 49% FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies. * 100% equity ownership by Non Resident Indians (NRIs) is permitted. * AAI Act amended to provide legal framework for airport privatization. * 100% tax exemption for airport projects for a period of 10 years. * Open Sky Policy of the Government and rapid air traffic growth have resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines.INITIATIVES
The Committee on Infrastructure has initiated several policy measures that would ensure time-bound creation of world-class airports in India. A comprehensive civil aviation policy is on the anvil. An independent Airports Economic Regulatory Authority Bill for economic regulation is also under consideration. * The policy of open skies introduced some time ago has already provided a powerful spurt in traffic growth that has exceeded 20% per annum during the past two years. * Major airports such as Chennai and Kolkata are also proposed to be taken up for modernization through the PPP route. * To ensure balanced airport development around the country, a comprehensive plan for the development of other 35 non-metro airports is also under preparation. These measures are expected to bring a total investment of Rs. 40,000 crore (USD 8.312 billion) for modernization of the airport infrastructure. * A Model Concession Agreement is also being developed for standardizing and simplifying the PPP transactions for airports, on the analogy of the highways sector. * This would include upgrading of the ATC services at the airports. Issues relating to customs, immigration and security are also being resolved in a manner that enhances the efficiency of airport usage. * A greenfield airport is already operational at Bangalore and the one at Hyderabad, built by private consortia at a total investment of over USD 800 million, will be operational soon. * A second greenfield airport being planned at Navi Mumbai is planned to be developed using public-private partnership (PPP) mode at an estimated cost of USD 2.5 billion. * 35 other city airports are proposed to be upgraded through PPP mode where an investment of USD 357 million is being considered over the next three years.POTENTIAL * High demand for investments in aviation infrastructure. * Favorable demographics and rapid economic growth point to a continued boom in domestic passenger traffic and international outbound traffic. * Greenfield airport projects planned in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur. * International inbound traffic will also grow rapidly with increasing investment and trade activity and as India’s rich heritage and natural beauty are marketed to international leisure travellers. * Modernisation / up gradation of metro airports induction of partners for Chennai, Kolkata expected subsequently * SME lending, a largely untapped market, presents a significant opportunity. This accounts for 40% of the industrial output and 35% of direct exports. 5.1 AIRPORT STATISTICS 2006-07 Airport | Average no. of Passengers (Per Day) | Mumbai | 20128 | Delhi | 18228 | Chennai | 7934 | Bangalore | 3455 | Hyderabad | 3327 | Kolkata | 2206 |
Source: Director General of Civil Aviation, AAIOPPORTUNITY
There has been a significant uptrend in domestic and international air travelOUTLOOK * Passenger traffic is projected to grow at a CAGR of over 15% in the next 5 years * To cross 100 million passengers p.a. by 2010 * Cargo traffic to grow at over 20% p.a. over the next five years * To cross 3.3 million tonnes by 2010 * Major investments planned in new airports and upgradation of existing airports | 5. ORGANIZATION PROFILE
Chennai Airport, the then Madras Airport has the following aviation history:- * 1932 - 1st Aircraft landed - "Pushmoth". The usage was confined to Military Operations only during 2nd World War. * 1952 - Civil Aviation Dept. took over. * 1972 - IAAI took over. * 1978 - Commissioning of Air Cargo Complex. * 1985 - Commissioning of New Domestic Terminal * 1989 - Commissioning of New International Terminal * 2003 - New International Departure Terminal Chennai Airport is the major hub airport in Southern India and handled 10.5 Million Passengers; 1.10 Lakhs Aircraft and 3.23 Lakh Metric Tones of Cargo during 2009-10. Share of Chennai Airport in all India’s passenger traffic is 8.5% and is third busy airport after Delhi (DIAL) and Mumbai (MIAL) airports. It has better connectivity to the rest of Indian regional airports and to the major airports in the world. On an average, daily, 10,500 international passengers and 18,000 domestic passengers were handled during 2009-10 at Chennai Airport.
UNIQUE FACILITIES:- Chennai Airport has all the free and paid facilities at par with world class standards. It has a unique facility of Domestic and International Terminals adjacent to each other connecting with common canopy. Moreover, the Suburban railway station is connected with under passage to the airport. It has many firsts as furnished below:- * First International Airport to get ISO-9001-2000 Certification. * 1st to have aerobridges at Domestic Terminal. * 1st to use Domestic terminal for International flight on wheels. * 1st to supply free mineral water through designated water coolers at Kamraj Domestic Terminal Anna International Terminal. * 1st to introduce paper cups at Airport to make it environment friendly. * Adjudged 'Best Airport - Domestic Terminal' by Indian Guild of Professional Architects. The President of India gave the award.
AIR TRAFFIC CONTROL TOWER
The air traffic control (ATC) tower is located at the Air Traffic Services Complex. There are two radars in Chennai—the mono-pulse secondary surveillance radar at Porur and the Chennai Westing House (terminal) radar. Advance surface movement guidance and control system has been introduced in the ATC tower.
As a first step towards integrating the entire airspace in the country, the automation system at the ATC in Chennai Airport was commissioned on 1 October 2011. The Airports Authority of India (AAI) has invested 420 million for the Chennai automation system, which runs on Auto Track 3+, a sophisticated air traffic control automation system supplied and installed by U.S.-based Raytheon. A new route radar at Porur has also been installed and the 13-year-old terminal radar at the airport will be replaced. With the automation system in place, all information regarding tower control, approach control, area control and oceanic control would be exchanged electronically in Chennai. It would ensure reliability, thereby enhancing safety of aircraft and passengers.
Chennai is among the four flight information centres in the country besides Mumbai, Delhi and Kolkata, and the Chennai ATC has Hyderabad, Mangalore, Thiruvananthapuram and Bangalore under its control. Besides the two radars in Chennai, radar systems in Mangalore, Bangalore, Bangalore HAL, Shamshabad (Hyderabad), Bellary and Thiruvananthapuram are included in the new system. With the advanced integrated radar technology, ATC in Chennai now has the entire South Indian region on its radar screens, mainly coordinating flight movements above 26,000 to 46,000 ft.
Following the Performance-Based Navigation system (PBN) and the air traffic control automation, in 2011, the AAI initiated a pilot project on a Ground-Based Augmentation System (GBAS), as part of implementing Gagan (Geo Augmented Navigation) in the country. There will be a set of 3-4 GPS satellites, one geo-synchronous satellite, GPS receivers at end of the runways, a ground station and a VHF data broadcast system. When the pilot project starts, Chennai airport will be the first airport in the country to have the facility.
RUNWAYS
Chennai Airport has two runways—the 3,658-m-long primary runway No. 07/25 (east-northeast–west-southwest orientation) and the 2,925-m-long secondary runway No. 12/30. The secondary runway was closed in 2009 to extend it over the river at a cost of 4,300 million. While the cost of extending the runway was projected to be about 2,400 million, that of the bridge is almost 2,300 million. The second runway has been extended and was planned to open by November 2011, which has been constructed across the Adyar river to extend it by 1,400 m. When the Airports Authority of India (AAI) recommissions the secondary runway, Chennai airport will join the league of airports with a functional runway across a river, namely, the Atlanta, Brooklyn andMadeira Island airports.
Routine maintenance works of the primary runway are carried out twice a week—between 2.30 p.m. and 4.30 p.m. on Tuesdays and Saturdays.
The AAI has made it clear that without the removal of obstructions like houses, water tanks and trees, it cannot open the full-portion of the secondary runway. Also, with metro rail works also expected to begin at the airport stretch, the full use of the secondary runway is not possible. It is planning to operate 2,400 m even after all the obstructions are removed and proper security arrangements made for the bridge over the river. About 2,085 m of the runway was earlier used for landing only smaller aircraft, like ATR types. CARGO INFORMATION | | |
The Air Cargo Complex at Chennai Airport was established on 1st February 1978. It undertakes functions such as : * Custodial services for storage and processing of both import and export cargo on behalf of the Customs. * Cargo terminal services for the airlines to facilitate both export and import operations. * Provide customer facilitation for exporters, importers and their representatives for freight forwarding and Customs clearance of cargo.INFRASTRUCTURE FACILITIES AVAILABLEThe Air Cargo Complex consists of two major divisions which are Export Facility and Import Facility.EXPORT CARGO FACILITYThe export facility consists of 16,366 Sqm. of modernized and mechanized terminal for air cargo handling. The main features of export terminal include: * 02 Elevated Transfer Vehicles (ETVs) with 178 multilevel stackers for storage of built up ULDs. * 18 mechanized embedded ULD "build up" positions with UNIT weighing facility. * Centre for perishable cargo storage facility with a holding capacity of 40 MT. * Strong room for storage and safe custody of valuables. * Separate storage facilities for dangerous and hazardous goods. * 09 x-ray scanning machines for scanning of export cargo. * Electronic and manual weighing facilities. * Availability of various types of cargo handling equipments.IMPORT CARGO FACILITYThe import facility consists of 16,500 Sqm. of covered area for storage and processing of import cargo. The major facilities available in import include: * A temperature controlled cold storage consisting 03 chambers for storage of perishable cargo such as Pharmaceuticals, Fruits, Vegetables, Meat, etc. * Strong room for storage of import valuable cargo. * Separate isolated storage area for dangerous and hazardous cargo. * Separate unaccompanied baggage unit. * Adequate number of various cargo handling equipments such as trolleys, tow-trucks, tractors, forklifts, etc.WORKING SYSTEM OF AIR CARGO OPERATIONSThe cargo operations are managed through Integrated Cargo Management System (ICMS) which is a software developed by AAI for conducting the air cargo activities in an online mode. The system is integrated with 10G Oracle data base and customer interface is provided through web based EDI. In fact, the customer agents are facilitated to do the transactions with AAI on their own using the web based EDI without having the need to contact cargo complex counters.CARGO PROFILE OF BOTH EXPORT AND IMPORTGarments, leather and electronics constitutes the major export commodities, whereas, electronics, machineries, automobile components, telecommunication equipments, computer hardware, white goods, etc. consists of major import commodities. As on date, on an average 720 MT (Export 350 MT and Import 370 MT) is being handled on a daily basis at Chennai Air Cargo Complex.5.1 CARGO TRAFFIC (in MTs) FROM 2004-05 (FY i.e. April to March) ONWARDS Year | Export | Import | Total | 2004-05 | 82285 | 64178 | 146463 | 2005-06 | 89437 | 78418 | 167855 | 2006-07 | 99356 | 95913 | 195269 | 2007-08 | 107530 | 120174 | 227704 | 2008-09 | 105662 | 113900 | 219562 | 2009-10 | 128812 | 120711 | 249523 |
5.2 CARGO HANDLING EQUIPMENTS AVAILABLE S. No. | Type of equipments used for cargo operations | 1. | Forklift – 12 MT | 2 | Forklift – 05 MT | 3 | Forklift – 03 MT | 4 | Tractor (Diesel) | 5 | High Mast Stacker | 6 | Battery Operated Pallet Trucks (BOPT) (Ride on) | 7 | Hydraulic Pallet Trucks | 8 | Tow Trucks | 9 | Four Wheel Trolleys | 10 | Two Wheel Trolleys | 11 | Electronic Weighing Scales | 12 | Manual Weighing Scales | 13 | X-Ray Machines |
5.3 CARGO HANDLING AGENCIESApart from Airports Authority of India, Air India also handles export cargo on behalf of few carriers. The airlines handled by AAI and Air India are separately given: Airlines handled by AAI | Airlines handled by Air India | 1 | Blue Dart | 1 | Air Arabia | 2 | British Airways | 2 | Air India (A) | 3 | Cathay Pacific | 3 | Air India (I) | 4 | Deccan 360 | 4 | Air Mauritius | 5 | Emirates | 5 | Ethiopian Air | 6 | Etihad Airlines | 6 | Kuwait Airways | 7 | Jade Cargo (Non-Sch.) | 7 | Malaysia Airlines | 8 | Jet Airways | 8 | Oman Air | 9 | Jetlite | 9 | Saudia Airlines | 10 | Gulf Airways | 10 | Singapore Airlines | 11 | Korean Air | 11 | Silk Air | 12 | Lufthansa | | | 13 | Martin Air (Non-Sch.) | | | 14 | Neptune Air (Non-Sch.) | | | 15 | Qatar Airways | | | 16 | Srilankan Airlines | | | 17 | Thai Airways | | | 18 | Iran Air | | | 19 | Air Asia | | | 20 | Kingfisher Airlines | | |
FUTURE EXPANSIONIn order to meet the growing demand, an additional area of 26000 Sqm. of modern and mechanized terminal is being constructed. The new complex will have facilities such as Automatic Storage and Retrieval System (ASRS) as special feature. The modern import facility would be commissioned by middle of 2010 for the benefit of customer agencies.MRO HANGAR FACILITY |
In 2008, Simplifly Deccan opened a US$2.9-million MRO hangar at Chennai International Airport. The 70,000 sq ft facility can handle one A320 or two ATR aircraft and provides basic- and medium-level maintenance checks and protective storage for Deccan and Kingfisher Airlines aircraft and functions as a repair shop and assembly area. The hangar, which took nearly two years to build, has a total construction area of 3,200 sq m. The maintenance hall spans 46 m wide, 54 m deep and 17 m high. The hangar has space for one Airbus A320 and 2 ATR aircraft at one time. It is equipped with an engineering and training facility and an engineering maintenance conference room.
Airlines that have hangar facilities at Chennai airport: * Air India * Jet Airways * Kingfisher Airlines * Deccan Airlines (Now part of Kingfisher Airlines)
MODERNISATION AND EXPANSION
The Chennai Airport has been slated for modernisation and expansion. The works are to be carried out by the Airports Authority of India and include construction of a new domestic terminal, expansion and renovation of the existing international terminal, renovation of the existing domestic terminal, extension of the secondary runway, creation of a parallel runway, taxiways, aprons, parking bays and cargo terminal. The new terminal will be spread across 70,000 sq m and would have 72 passenger check-in counters. However, the plan for the parallel runway has been dropped. The expansion works will involve the acquisition of land in nearby areas. The expansion of the existing airport would be taken up at Manapakkam, Kolapakkam, Gerugambakkam and Tharapakkam in Sriperumbudur taluk after a resolution to this effect was adopted by the government. The cabinet has handed over 1069.99 acres for the overall expansion. This includes 233.01 acres from Manapakkam, 394.91 acres from Kolapakkam, 360.84 acres from Kerukampakkam and 81.20 acres from Tharapakkam. The government would provide suitable compensation to 947 households in these areas and also rehabilitation to them. The rehabilitation of the households would be done in the first phase of the expansion work itself.
The modernisation and restructuring is expected to cost around 2,350 crore, of which the cost of construction of the runway, taxiway and apron would be around 1,100 crore, while the cost of construction of the terminal building, cargo building, car park and face uplift would be 1,250 crore.
As part of the plan to expand the current airport, 126.59 acres of land for second runway was formally handed over to Airports Authority of India (AAI) to start with. As per the modernisation plan, the secondary runway will be built over the Adyar river by means of a bridge. The second runway will extend across Adyar river and will be extended by a length of 1,400 m to a total length of 3,445 m, including 835 m on the northern side of the river. A bridge will be built over the river to accommodate the runway and a taxiway. This makes Chennai Airport, the only international airport in India to have a runway across the river. In Mumbai, only an end of the runway is over Mithi river. The secondary runway extension will cost around 430 crore and will be completed in 2010. With the second airport near Sriperumbudur under consideration, the project for a parallel runway has been put on hold and the total land required for the airport expansion reduced from 1069.99 acres to 800 acres.
The original plan to build a three-basement-level car parking for about 1,500 vehicles with about 8,000 sq m of commercial area on the open ground opposite the new domestic terminal building has been deferred temporarily. Instead a surface-level parking to accommodate 400 vehicles has been planned at a cost of 44.2 million.
The proposed Chennai Metro Rail Project will connect the Chennai International Airport to various parts of the City. Tentatively, the project is programmed for completion in the financial year 2013-2014.
The Chennai airport does not have rapid exit taxiways that help pilots to vacate a runway without slowing down the aircraft soon after landing. Planes such as Airbus 380 and Boeing 747-800 will have to slow down completely to negotiate sharp turns on the taxiway. In 2011, AAI began work on upgrading the existing taxiways and parking bays at the airport to handle these jumbo planes.
PROPOSED NEW PASSENGER TERMINALS
The current development projects include construction of a new domestic terminal and expansion of the current International terminal. The design is a collaborative effort of team lead by Creative Group, namely, Frederic Schwartz Architects, Gensler, and New Delhi-based Creative Group. While The Creative Group is the Principal architects for the project, Gensler and Frederic Schwartz Architects are responsible for the design of the passengers terminal buildings, parking garage structures and access roadway access system. The proposed design, based on Gensler's Terminal 2015 concept, will be connected with the existing terminal design elements. It was earlier reported that the new terminal buildings will have a handling capacity of 10 million passengers and when integrated with existing terminals will provide for a handling capacity of 23 million passengers a year. The new terminal buildings are expected to have an area of about 1,40,000 m² with 104 check-in counters, 16 aerobridge and 60 immigration counters and the two runways would be interconnected by a network of taxiways. The terminal complex will have a flyover travelator connecting the domestic and international terminals for a distance of about 1 km. It will have an elevated road on the top and a tube below which will have two walkalators. The 600-m long walkalator belt will be installed at a cost of 260million.
The design details of the runways are handled by the Airports Authority of India, while architecture firms are limited to designing buildings on the land side of the runway. The present proposal is parallel to the existing runway. The entire design as being organised around "two lush sustainable gardens" and the wing-like roofs helps collect rainwater and become part of the garden.
THE DESIGN
The domestic terminal building currently measures 139,931 sq ft and handles 4.74 million passengers a year. The revamped design of the domestic terminal building will accommodate twice as many passengers in a three-story structure 984 ft long, encompassing about 781,460 sq ft, with 140 check-in counters, 60 immigration counters, 7 security gates (3 international, 4 domestic), 4 conveyor belts and 7 aerobridges. The new design, based on the organisation of security and passenger circulation, centers around two lush, ecologically sustainable gardens each measuring nearly an acre and includes a parking garage with a green roof over 300 m long and rainwater capture systems collectively known as the "green gate" of the terminal. The folding geometry of the dramatic hovering free-span wing-like green roof captures and directs rain water during the rainy season to the elliptical openings in the roof, creating shimmering "rain curtains" as the water falls through the garage to cisterns and runnels below where it is stored for reuse as irrigation for the green roof during the dry season, thus maximising the site's sustainable resources. The terminal's wing-like curved roof is supported on large, full-height columns. The forward slope of these elements will work with the stiffness of the trusses to resist transverse wind and seismic forces. Along the building's 984-ft length, the V-shaped configuration of support columns will work integrally with a compression truss to create a repetitive series of stable triangulated elements to resist longitudinal forces. Large, arching space-frame trusses will allow for column-free public spaces on both the land- and air-side terminal areas. Expansive glass curtain walls will be incorporated to boost the feeling of airiness and spaciousness, as will skylights.[60] The new terminal will have three levels. The departure area will be featured on the top level with the arrivals section on ground level. The arrivals section will form the base for airlines and other offices with the basement reserved for luggage scanners. The domestic terminal covers 67,700 sq m and will also have a provision of seven gates, two hardstand hold rooms and 52 check-in counters, besides eight counters for e-ticketing. The international terminal will cover 59,300 sq m with the provision of two gates with multiple hardstand hold rooms, 52 check-in counters, eight counters for e-ticketing, 18/10 immigration/Custom counters for handling passenger arrival and 18/4 immigration/Custom counters for outgoing passengers. Both the terminals will be equipped with an inline baggage handling system capable of Level 4 security screening system. This system consists of four departure conveyors of a total length of 3500 m and can handle 1,200 baggages per hour.
The new terminal buildings measure more than 140,000 sq m. The new terminals buildings are expected to cater to 14 million more passengers per annum, including 4 million per annum at the international terminals. With the existing terminals handling 9 million, the airport will be able to handle 23 million passengers per annum after the integration with 16 million in domestic and 7 million in the international terminal. After expansion, the aircraft movements in the airport is likely to increase at the rate of 5 to 7 percent. By 2020-21, the airport is expected to handle 500 movements a day.
The new terminals are expected to clock between 72 and 75 green points of the total 100 for integrated inhabited assessment. The AAI has divided the building for landside and airside operations. The spaces are connected with a central security checkpoint for departure and there is a glass bridge on each side of the building for arriving passengers. On the roadside, the new terminals are connected with an elevated corridor, which will have approach and exit ramps.
In March 2011, by acquiring 136 acres of land from the state government, AAI completed extension of the 2,035-m secondary runway by 1,400 m, whose commissioning has been delayed as the approach lighting system has not been installed.
The retail space earmarked in the new international and domestic terminals is about 9,000 sq m, nearly thrice as much as the existing one.
PROPOSED NEW INTEGRATED CARGO COMPLEX
An integrated cargo complex will be built in the cargo complex of the Chennai International Airport. The complex would be constructed, at a cost of 145 crore, in 15 months. While the ground floor would measure 21,000 square metres, the first floor would be built on 12,100 square metres. The new building would be used exclusively for import activities. Once the civil works were completed, the Automatic Storage and Retrieval System would be installed. It would cost 75 crore.
NEW GREENFIELD AIRPORT
There is a current plan of setting up of a new greenfield airport at Sriperumbudur and Tiruvallur taluks, apart from the expansion of the existing airport at Tirusulam. The greenfield airport would come up on 4,800 acres (19 km2) of land. About Rs 20,000 crore will be invested in a greenfield airport near Chennai, says Tamil Nadu's vision 2023 document.
The feasibility report of the International Civil Aviation Organisation (ICAO), which has suggested that a second airport for the city could come up on 5,000 acres at Sriperumbudur, was submitted to the State government. The four-runway second airport is proposed to be built on 4,823 acres at Sunguvarchathiram near Sriperumbudur, northwest of Chennai, at an estimated cost of 35,000 million. To be built in two phases, the anticipated expenditure for phase I of the project is 40,000 million with a 87,000 sq m terminal along with a parking | | | | space for 750 vehicles. The second phase involves 150,000 sq m of terminal and enhancing parking space to accommodate 1,500 vehicles at an investment of 14,750 million.

6. LITERATURE REVIEW

1. Glen E. Weisbrod , Economic Development Research Group, Boston, MAJohn S. Reed and Roanne M. Neuwirth, Cambridge Systematics, Inc- AIRPORT AREA ECONOMIC DEVELOPMENT MODEL, Paper presented at the PTRC International Transport Conference, Manchester, England, 1993.
The paper mainly focuses on the economic development and the sustainable growth in airport industry. Basic conclusion of the paper is as follows,
The intent of the model described here is to provide a framework to help address these needs and improve local understanding. There have been a variety of different applications, each of which has required substantial local modification and continued evolution of the analysis system to meet local needs. For Glasgow, Scotland, the airport impact model was utilised to identify opportunities for business attraction and to guide planning for new development in the vicinity of the airport under scenarios of expected expansion. For Osaka, Japan, the data base of airports elsewhere was used to help identify development opportunities and needs associated with the new island airport facility (under construction) and the planned Rinku New Town nearby. For the State of Wisconsin, the airport model system was used to assess benefits and costs of alternative investments for both general aviation airports in small towns and large commercial airports in cities. There is much to learn about economic impacts of airports; the model system described here represents a framework for analysis applications. Hence the maximum inputs in the report were being used from the paper so as to analyse the employability range and the actual process of being a marketer to develop a business plan.

2. CHANGI AIRPORT BUSINESS AND OPERATIONS REVIEW-GOVENMENT OF SINGAPORE 2012

Changi Airport is currently linked to more than 220 cities about 60 countries and territories worldwide. With a plane taking off or landing every 100 seconds, it is the seventh busiest airport in the world today, in terms of international passengers served. Changi’s achievements are by no means a coincidence, but a concerted effort at growing its connectivity and network, as the world’s gateway to the Asia pacific region. In the 2011 Customer Satisfaction Index of Singapore released by the ISES, Changi Airport received a 78.6 customer satisfaction score, an increase of 4.9 points from the previous year, beating the transportation and logistics industry average of 70. Changi Airport was also ranked first in the transportation and logistics category, a testament to the continuous efforts to improve the passenger and visitor experience at Changi.
Hence some of the operations of Changi airport were taken into consideration while planning the strategies.

7. MARKETING STRATEGIES GENERATED

MODERNAISATION AND EXPANSION
The Chennai Airport has been slated for modernisation and expansion. The works are to be carried out by the Airports Authority of India and include construction of a new domestic terminal, expansion and renovation of the existing international terminal, renovation of the existing domestic terminal, extension of the secondary runway, creation of a parallel runway, taxiways, aprons, parking bays and cargo terminal. The new terminal will be spread across 70,000 sq m and would have 72 passenger check-in counters. However, the plan for the parallel runway has been dropped.
The expansion works will involve the acquisition of land in nearby areas. The expansion of the existing airport would be taken up at Manapakkam, Kolapakkam, Gerugambakkam and Tharapakkam in Sriperumbudur taluk after a resolution to this effect was adopted by the government. The cabinet has handed over 1069.99 acres for the overall expansion. This includes 233.01 acres from Manapakkam, 394.91 acres from Kolapakkam, 360.84 acres from Kerukampakkam and 81.20 acres from Tharapakkam. The government would provide suitable compensation to 947 households in these areas and also rehabilitation to them. The rehabilitation of the households would be done in the first phase of the expansion work itself.
The modernisation and restructuring is expected to cost around 2,350 crore, of which the cost of construction of the runway, taxiway and apron would be around 1,100 crore, while the cost of construction of the terminal building, cargo building, car park and face uplift would be 1,250 crore.
As part of the plan to expand the current airport, 126.59 acres of land for second runway was formally handed over to Airports Authority of India (AAI) to start with. As per the modernisation plan, the secondary runway will be built over the Adyar river by means of a bridge. The second runway will extend across Adyar river and will be extended by a length of 1,400 m to a total length of 3,445 m, including 835 m on the northern side of the river. A bridge will be built over the river to accommodate the runway and a taxiway. This makes Chennai Airport, the only international airport in India to have a runway across the river. The secondary runway extension will cost around 430 crore and will be completed in 2010. With the second airport near Sriperumbudur under consideration, the project for a parallel runway has been put on hold and the total land required for the airport expansion reduced from 1069.99 acres to 800 acres.
The original plan to build a three-basement-level car parking for about 1,500 vehicles with about 8,000 sq m of commercial area on the open ground opposite the new domestic terminal building has been deferred temporarily. Instead a surface-level parking to accommodate 400 vehicles has been planned at a cost of 44.2 million.
The proposed Chennai Metro Rail Project will connect the Chennai International Airport to various parts of the City. Tentatively, the project is programmed for completion in the financial year 2013-2014.
The Chennai airport does not have rapid exit taxiways that help pilots to vacate a runway without slowing down the aircraft soon after landing. Planes such as Airbus 380 and Boeing 747-800 will have to slow down completely to negotiate sharp turns on the taxiway. In 2011, AAI began work on upgrading the existing taxiways and parking bays at the airport to handle these jumbo planes.

STRATAGIES FOR THE EXAPNSION
AIRSIDE
-Shopping mall strategies merged into passenger terminals. -Retail marts which includes exclusive boutiques. -Restaurants like high end and as well as fast food tug shops. -Leisure (Cinemas, Paid lounges, nature trail)
LANDSIDE
-Hotels and entertainment. -Recreation centers like yoga camp. -Office and retail complexes. -Free trade zones.
7.2.1 AIRSIDE * SHOPPING MALLS ON TERMINLS:
Convenience Stores: Round-the-clock convenience store offering handy items such as pre-packed meals, sandwiches, drinks, newspapers, magazines, personal care items, etc.
Duty Free Liquor & Tobacco: duty-free liquor and tobacco at 50 to 70% discounted prices from INDIA . The shop also features a wide array of brand name products, including exclusive collectors' items that are much sought-after among shoppers. We can include kingfisher brands and give free coupons to kingfisher travellers.
Health & Beauty, Personal Care & Pharmaceutical : the perfect INDIAN Ayurveda products shop can be included to attract foreign customers.
Jewellery, Watches & Eyewear : the colourful gems and antique ethnic tribal old collectible silver gold diamond gem stones jewellery and articles from Rajasthan and other parts of India which mainly deals in, necklace, bracelet, anklets, head ornaments, belts, earrings, nose rings ,rings toe rings, stone strands, amulets, coins etc.
Kanjeevaram Ethnic the main import from the kanchi side is the ethnic silk sari. Hence we can include exclusive shopper’s stop selling various types and ranges of saris
Money Exchange, Banking Service & Atm: Financial & Travel Services Centre offers one-stop and integrated services catered to travel and financial services needs of travellers and clients. In addition to an extensive array of money exchange and travel-related products and services, including purchase and sale of various country’ money is made easy here.
Books & Magazines the authentic author’s best sellers or even amateur books can be placed over. There should be sitting places and rest areas where this book can also provide a renting facility makes it as a library.
Arts & Crafts: collection in authentic and original Asian arts and crafts, as it is a busy international airport offering everything from Cambodian silverware and Turkish glass lamps to handcrafted Indonesian wooden artefacts, its product range ensures an exciting and delightful visit for customers in search of enchanting Asian treasures.

* RESTAURANTS:
Restaurants are which that can serve continental as well as traditional food. We can highlight traditional south Indian food which comprises the three course meal. * LEISURE : 1. CINEMA: movie theatres can be placed which can be served 24 * 7 so that die-hard fans can have check into it. For example change airport operates theatres at terminal 2 and 3. 2. AIRPOT LOUNGES :

| | | |
PAY-IN LOUNGES
Are first class lounges that are open to ALL travellers - for a relatively small fee. if there is any layover, a cancelled flight or an early morning check-in and don't have time for breakfast before leaving for the airport, there is good value to be found in some of these lounges.
AIRLINE LOUNGES
Are first class lounges that have more restrictions for entry. To access these lounges, you must have a first or business class ticket with the airline (or a partner airline) that operates the lounge. Depending on the airline or alliance program, economy ticket holders may be able to purchase a day pass
FEATURES:
* buffet style meals and/or snacks * unlimited beverages (including alcohol in some lounges) * Wi-Fi for laptop users and computer workstations for those who are not have a laptop * comfortable seating * showers (great for those of you who have just spent the night in the terminal the night before) * massages (usually for an extra fee) * sleep rooms
LOUNGES MAY ALSO PROVIDE: * A cheap inflatable pool raft or travel mattress they fold up nicely and make the hard floor a lot more comfortable. * Eye shades and ear plugs for obvious reasons. * Bottled water and snacks. Many dining facilities and shops close down at night, so who forgets bring or buy food before the airport shuts down. * Books/magazines/diary * An alarm clock or a pen and post-it pad. * An airline blanket and/or pillow * Disinfectant wipes. Cleanliness is a problem in some airports, so these handy wipes will make the night a little less germ and grease covered. 3. NATURE TRAIL:
We can have some exotic nature operations such as
FRAGRANT GARDEN: we can include most fragrant trees like chandan and some plants which are used for the perfumes, which are available in INDIA.
BUTTERFLY GARDEN: exotic butterflies can be included into it as we already have a butterfly garden near in Chennai.
7.2.2 LANDSIDE 1. HOTELS: - There are many hotels situated in the surrounding area, the main idea is to set up hotels which work on the hourly based revenue system(Ex. GINGER HOTELS).
Business hotels are to be found near almost every international airport in the world. In the near future a luxury business hotel, named “Airport Hotel”, will be constructed in the park. “Airport Hotel” will be built on a compound of 16,000 sqm and will include 250 rooms, meeting rooms, a stylish swimming pool, a dining hall, a relaxing Spa, offices and retail floors, a bar and a coffee house.
Advantages for hotel guests will include: * Immediate access to chennai Airport * Transportation to and from the airport * A drop-off entrance access * A quick check-in area, including a display of flights departure and arrival times, updated on line from the airport * Stay and storage areas for late check-out * Business executive rooms * Under the ground parking lot * Car rental services

2. ENTERTAINMENT:- Entertainment includes an amusement park, a film theatre(open air), * KIDZEE, * kid’s special entertainment zone which will be tie up with Disney ltd. Which have all the Disney characters will be exhibited and almost replicates Disney land. * Education Park
Education Park is a new and unique liberal studies platform. All facilities are designed for children to experience real life working by role-playing in related uniforms. Through each job simulation, children can broaden their horizons, develop independence, teamwork and social skills. * THEMED RIDES :
Cartoon characters will be set as themes for the rides.
Ride the Thomas: Thomas, a train character in Thomas show, is made available for the children to take a ride.

* CASINO ROYALE, a casino which don’t have gambling but has other games which can be played on bet, such as CHESS, SCRABBLE, BILLIARDS, will be placed. * CHEF-D’OEUVRE, a place in which trained chefs presenting the demonstration of the world’s best cuisine for interested souls. * NOSTRADAMUS ATHENAEUM, a place which replicates an astronomy museum, all the stars, planets, comets are studied here 3. RECREATION: - RECREATION CENTERS such as a free meditation camp and yoga camp is placed. * TIBETIN PULSE YOGA, which helps to relieve all the stress factors, can also be called as stress relieving centre. 4. OFFICE:-An IT hub is planned, which allows to have an urgent meeting conference room.
IT ESPLANADE, Which allows to place IT office buildings in it.
“ESPLANADE” – the Most Modern and Prestigious Events and Conference Center in our AIRPORT CITY
The centre is designed for both family and business events and includes unique advantages that enable perfect hospitality, to the last detail.
In the compound we will plan, an events hall of 2,300 sqm, conference halls in a total area of 2,000 sqm and a landscaped garden of 2,000 sqm.
“ESPLANADE”s Events Centre is a perfect solution for large events (such as weddings and other happy family occasions) for anything between 350 to 3,000 visitors. It can be divided into 4 modular acoustic halls and includes a reception lobby with decorated sitting areas.
“ESPLANADE”’s Conference Centre includes 4 halls in different sizes, surrounded by a spacious, furnished lobby. The halls are suitable for different conferences or events for 50 to 300 guests. Each hall includes a sound amplification system, simultaneous translation system, hanged projector and built in screen, air-conditioning and a flexible and controllable lightning system. An audio-visual technician provides each event with professional and technical support.
NEWS & FINANCIAL INFORMATION
Updating with world financial news from cable channels like BBC World, CNBC, Channel News Asia and CNN news service. You can also catch up on the latest stock and equities information provided by famous organization. Plasma televisions set up for you to catch up with daily news updates are located at the land side.
BUSINESS CENTRES
Services like typing, mailing of documents and 24 hours photocopying and faxing are available at the Business Centres.
Also experienced persons can be kept available for urgent business plans for a day. Senior secretaries can be appointed. People after retirement can work here, so that we are going to be beneficiaries to the old citizen too. 5. RETAIL:- * A vast area is devoted for the exclusive BOTIQUE with traditional INDIAN-WARE. * Jewellery showrooms are been planned. * INDIAN traditional hand-craft exhibits are planned. * TOURIST guides are provided from the airport itself. 6. FREE TRADE ZONE:- free trade zone which gives a relaxation over custom duties is planned for clothes, shoes, sneakers, electronics, and toys.

8. RECOMMENDATIONS

1. ADVERTISE THE LOGIC: As we need to attract the attention of many investors we need to advertise why they have to invest in Chennai airport. 2. OFFER EMPLOYABILITY: if the industry is going to improve, then high range of offers can be given to the youth, which has a lack of employment. 3. MAINTAIN SUSTAINABILITY: as the service sector is highly variable because of the employees shift to one place to other, improve relation with employees so as to sustain same type of services on a period of time. 4. REDUCE THE GAP: The gap between the customer perception of the service and delivered service should be reduced. 5. USE EFFECTIVE FEEDBACK: service sector should consider the customer the ultimate judge. Hence appoint good feedback system in the port itself. 6. MAINTAIN HYGIENE AND PROTECTION: the reviews on the airport mainly consist of the complaints about the cleanliness and the thieves in the port. Hence perform proper actions to maintain these facilities.
All the recommendations are made in subject to attract the private investors as the government is in search of private partnerships.

9. SCOPE FOR THE FURTHER STUDY

* The study mainly focuses on the review of the marketing strategies that are to be placed after the PPP model is finalised. Hence no discussion was kept forward to have a look upon the revenue generated as well as the financial budget needed to set up these firms. * As the financial aspects are not covered in the report, there is a further scope to study in the part of the financial aspect. * There is no much discussion about the business plan for each of the business strategy generated. Hence the complete business plans can be given. * The economics and revenue part has not been introduced. So the airport’s revenue analysis can be done. * The operations of the private players is not taken into account as per the limited scope of the study, hence a detailed discussion of the private organizations that are interested, advantages and disadvantages of the privatization can be done.

10. CONCLUSION
Although usually differences exist among competitors, each industry has its own set of combat rules governing such issues as product quality, pricing, and distribution. This is especially true for industries that contain a large number of firms offering standardized products and services. There should be differentiating strategies to improvise the performance of the firm. Hence the strategies put forward are expected to differentiate the organization from the other competitors. The urge to get the private partnership is highly seen in the current scenario. So the need for the targeting strategies is highly appreciated by the investors.

11. REFERENCES AND BIBLIOGRAPHY

1. http://info.shine.com/Industry-Information/Aviation/140.aspx 2. http://www.constructionupdate.com/Default.aspx?Tags=7LOQ8586QQM2h3pRJ6oOg1j9Z+N/0yfZpoBO4tNKHhI=&NewsType=Bengal-Aerotropolis-Projects-India-Sector 3. http://www.edrgroup.com/pdf/airport-econ-ptrc.pdf 4. http://www.changiairportgroup.com/export/sites/caas/assets/changi_connection/Business_x_Operations_Review-2012-xPart_2x.pdf 5. http://www.changiairport.com/at-changi/entertainment-lifestyle/movie-theatre 6. http://www.airport-city.co.il/en/inner.php?id=8&top=1 7. http://www.atomicdogpublishing.com/PDF/Parnell_ch03.pdf

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