Major changes ahead for Indian air traffic control amid plans to separate ATC functions

After many years of deliberations, India appears to be moving ahead with plans to separate the air navigation services activity of the Airports Aurthority of India (AAI), the state-owned airport operator. "The Government is contemplating delinking of air traffic control operations from airport operations of the AAI," said Mr Vayalar Ravi, Minister of Civil Aviation, adding a decision in this regard would be taken soon.

Mr Ravi previously stated the air traffic control services would operate as a fully-owned subsidiary of the AAI and not split off into a separate commercial entity. The new subsidiary would be named the Air Navigation Services Corporation of India, according to reports from Aug-2011. Air traffic control operations account for nearly 60% of AAI revenue with AAI previously estimating that spinning-off its air traffic control functions into a separate entity could cut its revenue by up to INR20 billion (USD454 million) p/a and jeopardise its status under government investment rules controlling state-owned firms. [1556 words]

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This report contains the following subheadings:

• AAI struggles with twin issues of updating ageing ATM infrastructure and training sufficient controllers
• New AAI plan to integrate Indian air space
• India struggling to cope with ATCO shortage
• ATM performance improvements seen in recent years

This report contains the following charts and tables:

• Air traffic routes: India
• Indian carriers domestic passenger numbers and passenger number growth: Aug-2009 to Aug-2011
• Airport Authority of India (AAI) aircraft movements: Jan-2009 to Jul-2011
• Indian carriers domestic passenger numbers and passenger number growth: Jan-2006 to Aug-2011 (June in light blue and trend line in green)