Establishment of a Flying School | Business Dissertations


Civil Aviation Scenario – Evolution

In December 1910, a party from Belgium and two from England with many aircrafts arrived in India. The first amongst them was famous Humber motor companies. The team was led by Capt WG Windham, comprising two pilots, one French and one English and two mechanics.

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After reaching Bombay (Mumbai) they proceeded to Allahabad to demonstrate the aircraft at the Industrial Exhibition due to be held there shortly. The first actual flight was successfully attained by Mr. David in a Beriot on the 10th of December 1910 circled the Polo ground at a height of 25 to 30 feet.

The second aircraft flew the next day, December 11, 1910, under the control of French Pilot Piguet and carried the first passenger in India. He was one of the sons of the Maharaja of Benares In a show at Tollygunj, near Calcutta on December 21, 1910, in a show Baron flew with a lady passenger Mrs. N.C. Sen who thus became the first woman in India to get airborne.

The history of civil aviation in India started with its first commercial flight on February 18, 1911. It was a journey from Allahabad to Naini made by a French pilot Monseigneur Piguet covering a distance of about 10 km over the river Yamuna.

The first domestic air route Karachi-Delhi began in December 1912 by the Indian State Air Services in collaboration with the Imperial Airways, UK. It was actual extension of London-Karachi flight

The Indian aviation gathered momentum after three years (1915) with the opening of a regular airmail service between Karachi and Madras by the first Indian airline- Tata Sons Limited

October 15, 1932, JRD Tata started Tata Aviation and piloted the first carriage of mail from Karachi to Bombay. Tata Aviation later became Air India.

At the time of Independence, there were 9 air transport companies operating in India. Tata Airlines, Indian National Airways, Air Service of India, Deccan Airways, Ambica Airways, Bharat Airways, Mistry Airways and Oriental Airways

Air Corporation Act of 1953 was passed nationalising all airlines. Air India International took over the international traffic and Indian Airlines Corporation the domestic.

Sector structure/Market size

The Indian civil vaiation industry is among the fastest growing industries in the world with its growth rate of 18% per annum. Number of players as well as the number of aircraft is increasing in India at it is mainly due to the open sky policy of the government, because of which many overseas players are entering in the aviation market. Today, private airlines account for around 75 per cent share of the domestic aviation market.

India was at 12th position in the world’s aviation market in 2006, but it has improved its position holding 9th position at present.In the year 2006 the domestic air services were available at 75 airport in India which has improved up to 82 airports now.

Month-wise Indian Scheduled Domestic Operation
(Aircraft Kms Flown) of Civil Aviation in India
(May 1988 to December 2008)

In India the air passenger travel is increasing at about 25% a year since the aviation sector opened up the skies to private carriers. Government has estimated that by 2025 the growth of aviation sector in India will outpace the global average. Currently the aviation sector is going through bad phase which started from 2008 after economic slowdown hit the market in 2008, while year 2007 was the best ever in terms of growth for India’s civil aviation sector. The domestic airlines passenger load increased by 36.47 % (to 317.29 lakh passengers) in the first three quarters of 2007.

International Air Transport Association (IATA), estimated about the Indian aviation sector that India will contribute significantly to global air travel. This contribution which was US$ 5.1 billion in 2007 will soon cross US$ 5.6 billion after the market condition will be stable and then it will grow significantly. In 2007 market research firm PhoCus estimated that domestic air traffic will be more than double and touch 86.1 million passengers by 2010, up from 32.2 million passengers in 2007. But after economic slowdown this estimate may take some time to achieve after 2010.


Aviation sector is going to play a major role in terms of employment in this sector. There is going to be huge demand for technical and administrative employees in this sector due to the vast growth of aviation sector in the future. Aviation sector is not only limited up to pilots and air-hostesses but there are many employment options in this sector which are related to aviation and without which industry cannot function. Some of the Operations jobs include: Pilots, airhostesses, air traffic controller, cabin safety instructor, in-flight managers, In-flight base managers, cabin services instructor, maintenance controllers, aircraft maintenance engineers, quality control manager, cargo officers and ground staff.

There is also a wide range of positions on the ground and these include the services of mechanics, baggage handlers, ticket agents and reservations agents.

Potential for Growth and its future

The Indian Civil Aviation market was worth US$ 5.6 billion in 2008 which has grown at a compound annual growth rate (CAGR) of 18 per cent.

According to Centre for Asia Pacific Aviation (CAPA) the domestic traffic will increase by 25% to 30% till 2010. Also international traffic will grow by 15 per cent and total market will have more than 100 million passengers by 2010. At present the India’s civil aviation passenger growth is 20% and it is one of the highest in the world. By 2020, 400 million Indian passengers are likely to be airborne.

More than 100 million passenger in which 60 million will be domestic passengers and around 3.4 million tons of cargo per annum are expected to handle by the Indian airports by 2020.

There are many significant steps which are still to be taken by the government to propel growth in the Indian civil aviation sector. Indian government is already working on its plans to modernize existing airports by 2010 and is investing more than US$ 9 billion in the project. There is also a plan of the government to develop around 300 unused airstrips.

Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation (CAPA), in an interview said that India’s civil aviation passenger growth is among the highest in the world. “The sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million.”

The markets being as it is holds great promise for potential investors and numerous International no-frills budget carriers are making a beeline for India. With so much activity in the sector there is a tremendous need for personnel as well. While earlier, the airline industry was largely government owned and perceived as regulated and also a tad boring, with private and international players entering the market, opting for a career in the airlines has become both a lucrative and glamorous option

To meet the growing demand, Indian scheduled carriers are placing major orders for aircraft. Based on press reports, Indian carriers placed orders over US $12 billion at the 2005 Paris Air Show. Of the 280 aircraft order received by Airbus, 135 are from Indian carriers. Moreover, of the $50 billion that Airbus can earn from these deals, the contribution of Indian carriers is over $15 billion. Airbus forecasts that the number of new aircraft it would sell to Indian carriers would go up to 400 by the year 2023. This will make the India the third largest market for new aircraft in Asia, behind China (1,790) and Japan (640), according to Airbus’ Global Market Forecast 2004-2023. The aviation industry is of the view that the European aircraft maker may have to again revise its projection upwards. The report further states that Boeing expects India to buy aircraft worth $35 billion in the next 20years.

As per a press report, the Center for Asia Pacific Aviation (CAPA) estimates India’ domestic airlines would need 650 new aircraft by 2012, up from the current 210. Every new carrier launched in the country will need to buy a minimum of five aircraft to start operations, as stipulated under the license condition, in the next 12 months. Inter Globe Enterprises has placed firm orders for 100 aircraft worth $6.5 billion. The anticipated fleet augmentation planned by airlines of India are shown in Table

Source DGCA

It will be observed that India is likely to see large increase in aircraft registered in India and operation of such fleet would result in straining of aviation infrastructure. Policy decisions have been undertaken to enhance the airport infrastructure.

Another component of aviation infrastructure that is of crucial importance to growth of Civil Aviation is up-gradation of capacity to train critical manpower. The training for making available operating crew and maintenance personnel is an expensive exercise and requires long gestation period. Prior to liberalization in early 90’s, the two State-owned airlines had established elaborate training infrastructure to train critical manpower for their needs.

The training plans were evolved based on its fleet expansion plans. In the first phase of domestic market liberalization in early 90s the requirement of critical manpower had placed a strain on availability of this human resource. Large scale poaching of critical manpower from one airline to another had been resorted to. The growth of fleet in the first half of the current decade had again resulted in shortage of operating crew and maintenance personnel.

The series of steps have been taken recently to meet the present shortfall of cockpit crew that include increase of eligibility age of pilots from 60 years to 65, permission to ex-pat pilots to operate airline services etc. Industry is still facing problem besides opening up of doors for foreign pilots. In fact DGCA has taken a lead role to alleviate the situation of shortage of pilots in all possible manners without compromising the safety aspects.

Private airlines are equipping themselves with flight simulators for pilot training including recurrent checks. Indian Airlines has been inducting CPL holders for its training program at CTE Hyderabad. Air India has embarked on a planned program to cater to long-term requirement of pilots by resorting to induct trainees for outsourced training to PPL & CPL level thus enabling them to be inducting into ab-initio training program at its training establishment.

Based on the fleet augmentation plans of various airlines and expected increase in the number of airlines, the requirement of critical manpower is expected to be the key factor in maintaining sufficient operating capacity to meet the growing demand for air travel in the country.

Demand For Operating Crew

The requirement of operating crew, of which cockpit crew is most critical due to long gestation period in training and need for elaborate and expensive infrastructure involving training aides such as aircraft simulators and other equipment in addition to training aircraft. The demand for operating crew in the country is based on the combined fleet augmentation proposed by all existing scheduled airlines and the prospective entrants into the air transportation business. Apart from schedule operators, pilots are also required by a large number of existing non-scheduled operators involved in charter operations and also for corporate aircraft owned by large business houses.

Since the unprecedented growth rates achieved in the domestic market, and huge orders placed by airlines for new aircraft to cater to expected passenger carriage in the market, government, airlines, and other research institutions involved in civil aviation have been making projections for pilots requirements in the country. The projection by various bodies are at variance depending upon their estimation of the size of the market and expectations of the fleet size.

The Center for Asia Pacific Aviation (CAPA) estimates that India’s domestic airlines would need 650 new aircraft by 2012, up from the current 210. This projection results in annual induction of over 70 aircraft that would require over 500 pilots per year for the new aircraft yet to be inducted.

While evaluating the emerging aviation scenario, Kaw Committee (2006) had the following to say about critical manpower requirements to meet future needs:

“Induction of large number of aircraft would require more than thousand additional type-rated pilots and equally large number of type-rated engineers in span of a decade, to meet the growth requirements, in addition to the recurring requirement of the licensed personnel. At present, most of the private operators get their pilots and engineers trained at the facilities of aircraft manufacturers or approved training organizations abroad. Considering the huge potential of training engineers and pilots in the country, some agencies, including aircraft manufacturers are thinking of establishing type-training facilities in India. DGCA will have to be strengthened to conduct examinations and licensing of large number of pilots and engineers required to operate and maintain the additional aircraft being acquired”.

Currently there are 1650 ALTP commercial pilots licensed by the DGCA to meet requirements of over 200 aircraft operated by scheduled airlines and 2300 CPL holders meeting the airlines and general aviation aircraft. There are about 500 expatriate pilots assisting airlines in keeping airlines aircraft flying. The total requirement of pilots that would have to be trained from initial stage should take into account natural wastage on account of superannuation. FAST estimates consolidated additional requirement of pilots for the Scheduled/ non-scheduled airlines and the corporate sector at around 3000 pilots during the five years (2007-2012). Broad estimation of the requirement is shown below in Table

In the present civil aviation scenario, the fleet plans of various airlines can undergo changes keeping in view growth rates on micro basis and intensity of future competition. The projection of requirements of pilots on year-to-year basis is therefore fraught with uncertainties, but a projection of pilot requirement on a longer time horizon is likely to be more realistic.

Demand for Pilot Training Apart from air transportation of passengers on scheduled services and corporate travel, another potential area that has not seen much development is the need of air transportation for disaster management and medical relief /evacuation. In the coming years the use of small aircraft /helicopters is likely to become prevalent and air linking of district centers with State capitals/ major towns will be necessary. Operation of aircraft for this sector of aviation will also add to requirements of pilots.

It may be noted that there is great demand for Pilot Training in India that has arisen due to phenomenal growth in air travel spurred by economic growth during the past. The present policies of the Government of India pertaining to emphasis on infrastructure and services sector leads to a very positive economic outlook that will have impact on the air transportation sector. The growth of traffic recorded in recent years is likely to be sustained in the immediate future and is expected to stabilize at a reasonable level. The sustenance of this growth is dependent on the growth and development of Aviation infrastructure of which training of critical manpower is a very important feature.

Type of Training

Flying Training Institutes offer various levels of trainings for commercial flying. These include Private Pilot License (PPL), Commercial Pilot License (CPL), Multi-engine Rating, and Instrument rating; apart from Commercial Helicopter Pilot License, Flight Instructor License/Rating, and Airline Transport Pilot License. In the first phase it is proposed to impart training for PPL and CPL as these trainings involve flying training on single engine aircraft. For multi engine rating and IR rating, induction of twin-engine aircraft is required along with requisite training aids such as specific aircraft simulator.

Eligibility Qualifications for Entry to PPL/ CPL course

Candidates for PPL training should have completed Senior Secondary Examination (10+2). Minimum age of 17 years is prescribed for induction into the course. PPL holders would be eligible to be inducted for CPL training and should have PPL issued with 50 hours of flying and not less than 10 hours of solo flying within a period of preceding 12 months. The flying club issues student Pilot license after checking the general capability of the student to continue flying training such as enough leg space in the cockpit.

Selection Procedure

The selection of candidates may be done on the basis of a written examination followed by Pilot Aptitude Test and Interview. The written examination for entry into PPL course will be on general subjects such as English, Physics, Mathematics and Reasoning, where as for CPL written exam will be for subjects of Air Navigation, Aviation Met, Technical general and Air Regulations.

Ground Courses and Flying Training

Ground Courses: Topics for the ground courses that are laid down by DGCA for PPL and CPL along with duration are shown in Table 2.1.

Trainee Intake & Course Duration

PPL Course: The Institute in the First Phase will cater to induction of a batch of 20 trainees for PPL course. Initially induction will be carried out twice a year. During the second year of operation of institute four batches of 20 trainees each are proposed to be inducted at three monthly intervals. Trainees are expected to complete PPL Course, Simulator and Flying Training in six months. The course work and part simulator training will be completed in three months followed by intensive flying training of 50 flying hours per trainee.

CPL Course: The CPL course will commence during the second year of institutes’ functioning

Training Infrastructure

Flying and Gliding Clubs: It is observed that Flying and Gliding Clubs have been receiving financial assistance from the Central Government ever since their inception in 1928. This assistance gradually increased on the recommendation from various Committees set up for the purpose from time to time. It is also to be noted that in addition to receiving subvention from the Central Government most of the clubs were receiving grants and donations from the State Governments and other private organizations besides the revenue earned through:

  1. Flying fees paid by the trainees
  2. Membership fees/subscriptions etc.

The subvention budget was raised to 3.5 crores by the Ministry of Civil Aviation. Later on this subvention was withdrawn except for SC/ST candidates. All the flying clubs except private one’s became sick due to non-subsidy to students as it was a great burden for pilot student to pay for full flying cost. Flying clubs are generally private bodies headed by Deputy Commissioner of the district, with Sr. public person and DGCA member on its board. Equipment i.e. aircraft are purchased by the Central Government (DGCA or Aero Club of India) and given to flying clubs but remain property of DGCA.

Indira Gandhi Rashtriya Udan Academy (IGRUA) was set up in Fursatganj in U.P. to provide quality training to the pilots. The Academy envisaged a quantum improvement in the standards of flying and ground training of Commercial Pilots in the country. For this, the Academy is equipped with most modern and sophisticated trainer aircraft, up-to-date audiovisual training aids and other facilities for effective ground training. Highly qualified flying and ground instructors, with long experience in the field of aviation and flying training were recruited.

Academy is funded by Ministry of Civil Aviation (Air India & Indian) and is equipped with latest aircraft /simulator. It has produced a large number of pilots who are serving airlines. IGRUA charges Rs.16.5 lakhs for CPL training. IGRUA uses mainly TB-20 trainer aircraft and it charges per flying hour is Rs.12, 000/-. IGRUA have been permitted to admit 100 flying students per year. IGRUA is supported to the tune of Rs.10 crores (approximately) on its recurring annual account.

Proposed Training Establishment At Gondia in Mahrashtra: – Ministry of Civil Aviation (MCA) is in the process of setting up National Flying Training Institute (NFTI) at Gondia in Maharastra. MCA is concerned regarding shortage of world-class facilities for training the pilots in India to meet the large-scale demand of well-trained pilots. Ministry also envisages that specific infrastructure meeting the needs of International Standardized Flying Training including the research and development in the fields of pilot training, aviation related innovated and practical courses comparable to the requirements of standards of CAR, issued by DGCA (India). ICAO, FAA (of USA) and other international training centers of repute should be established.

NFTI is a green field training center and aims to develop NFTI investment as viable economic units. NFTI may have institutional structure which meet the DGCA requirements for flying training. These are

  • Society registered under the Societies Registration Act, 1860

  • Statutory body under an Act of Parliament

  • Company incorporated under the Companies Act, 1956

Foreign Training Institutes/ Schools: Indian flying students also go abroad for flying training and obtaining PPL and CPL in foreign Academies predominantly in USA, Canada and Australia. The pilots having successfully completed the training program receive license issued by Civil Aviation Authorities of respective countries. DGCA accepts the license of foreign aviation authority and endorses the license after passing of the students of three papers and flight check by the DGCA pilot. The duration of obtaining CPL license is comparatively much less and may cost about $US 20,000/- as fees. The student pilot also pays additional expenditure for boarding and lodging and traveling

Process For Grant Of Approval For Flying Training Institute

Approval for setting up Flying Training Institute is issued by the DGCA in accordance with CAR Section 7, Series “D” Part 1 issued in July 1999 and subsequently amended from time to time. This document details eligibility requirements, and describes the process in details along with minimum requirements relating to infrastructure, procedures and manpower for grant of approval This document is applicable for flying training activities with aircraft having maximum certified take off mass not exceeding 5700 kgs. The document also encloses formats for applicants to be utilized at various stages in the process.

Eligibility requirements for issue of approval:

Approval of organizations undertaking flying training activities can be granted to Central Government or state owned or controlled ones. Indian citizens, Nonresident Indian, or overseas corporate bodies can also apply for setting up flying training institutes. A company registered in India having its principal place of business within India with or without foreign equity participation (excluding NRI equity as approved by Government of India from time to time is covered in eligibility criteria.

Stages of Approval

Under the prescribed process, approvals are granted stage-wise. The stages are as under:

  • Grant of Initial ‘No Objection Certificate’

  • Permission for import/ acquisition of Aircraft

  • Grant of Approval

Grant of Initial No Objection Certificate (NOC) – Stage 1

Application is to be made to the Director General of Civil Aviation in prescribed format. For issue of initial NOC, Security clearance and FIPB approval (in case of foreign equity participation) is necessary. Application should contain following information with supporting documents. Following details are required to be furnished in the application:

  1. Memorandum of Articles of Association duly registered with the competent authority

  2. No Objection Certificate from Airports Authority of India from air traffic point of view

  3. No Objection Certificate from Owner of the airport for use of airport for setting up of training institute and for providing parking and Hangar space.

  4. Financial soundness of applicant

  5. Project report giving details of organization, manpower, training plans, infrastructure and equipment for the institute, source of funding, viability of project etc.

  6. Details of Directors of the Board and Chairman/ CEO for necessary security clearance

  7. Type and number of aircraft and simulator and source of procurement

  8. Submission of requisite fee

Initial NOC will be granted after the application is found satisfactory from the point of view of need of training institute, airport capacity and constraints at the proposed airport, suitability of proposed aircraft type, aircraft maintenance arrangements etc. This NOC is valid for one and half years during which applicant will take necessary steps to comply with requirements and acquire final approval for starting the training institute.

Issue of permission to import of Aircraft – Stage 2

Initial NOC holder will take necessary steps to the satisfaction of DGCA for establishing required infrastructure, recruitment and training of manpower, preparation and approval of training manual, maintenance system manual, MEL, Maintenance schedules, security program etc. Initial NOC holder will furnish necessary information to show that the specific aircraft proposed to be imported meets the requirements for import of aircraft and that all mandatory modifications and airworthiness directives are complied.

On demonstration of necessary preparedness the initial NOC holder will apply to the Ministry of Civil Aviation for grant of permission to import/ acquire aircraft in the prescribed format.

The permission to import aircraft shall be valid for one year extendable by three months on one time basis. For new aircraft extension may be permitted for actual lead-time of the delivery.

Grant of Approval – Stage 3

For the final grant of approval institute shall have necessary training aids, Hangars, suitable space for aircraft maintenance, well lighted workshops and fire fighting / safety equipments. Well-marked and adequate parking bays and taxi tracks along with facilities for mooring should be available. Adequate space for engineering, maintenance, operations and classrooms should be in place. The institute should have a well equipped library with aviation books, literature, up to date flying training circulars/ compendium, CARs, AICs, AIP, Jeppson Charts route maps etc.

Chief flight instructor/ Flight Instructor, in-charge and Quality control Manager should be recruited for whom DGCA approval is obtained. Adequate number of flight instructors, ground instructors and engineering personnel should be employed. Specific approval is necessary for employment of foreign licensed pilots/ engineers.

On completion of necessary preparedness, applicant will apply to DGCA for grant of approval to the flying institute. The application should cover the following aspects:

  1. Particulars of specific aircraft with installation of mandatory instruments and equipment

  2. Certification of Registration and Certificate of airworthiness of the aircraft

  3. Approval of the maintenance organization

  4. Name, license/ approvals and endorsements of flight instructors/ engineers

  5. Comprehensive insurance policy covering aircraft, occupants and third party risks in accordance with requirement

  6. Compliance of relevant CAR and conditions for initial NOC if any

  7. Details of facilities, equipment, procedures and necessary manpower.

On satisfactory review by the DGCA, a team constituted in DGCA will carry out inspection of the institute. If the institute meets all requirements DGCA will grant approval to the institute that shall be valid for one year and shall be renewed each year.

Sources For Instructors

The sources from where instructors could be recruited are as follows:

  • From general aviation

  • Indian Air Force

  • International Market

There is a shortage of instructors at present in the Indian aviation market. However, NEC can approach Indian Air force for instructors on deputation. The instructors can also be sourced from the International market.

Company Profile

(Foundation for Aviation and Sustainable Tourism)

Vision of FAST

“Foundation for Aviation and Sustainable Tourism (FAST) to be a Think Tank evaluating policies and a Research Organization of Repute.”

About FAST(Foundation for Aviation and Sustainable Tourism)

Foundation for Aviation and Sustainable Tourism(FAST) is an international. non-government, non-political, autonomous research organization was founded in the year 1992 .It is not working for the profit but its objective is to promote the Civil Aviation and Tourism in harmony with the environment and provides common platform for the industry and the government to find a workable solutions. Its main aim is to function as an institutional base for the study of all aspects with regard to civil aviation and tourism including their management


Former Secretary General, International Civil Aviation Organization (ICAO), Dr. S.S.Siddhu is the founder Chairman of this organization. Lt. Gen (Retd.) K M Seth, PVSM, AVSM, former Governor of Tripura and Chattisgarh is the president. Former Executive Director, Airport Authority of India (AAI) Mr. Gurcharan Bhatura is the director general of FAST. Mr. B.K Joshi, former Joint Director General of Civil Aviation is the secretary general.

Board of trustees

FAST is managed by the board with following trustees:

  1. Lt. Gen. (Retd.) K.M. Seth PVSM, AVSM Former Governor of Tripura & Chattisgarh
  2. Mr. N.N. Jha IAS (Retd.)
  3. Mr. B.N. Jha,IAS (Retd.)
  4. Mr. Uma S Bhartia, Manager Director India Glycols Ltd
  5. Mr. P.R.S. Oberoi CMD, East India Hotels (Oberoi group of hotels)
  6. Mr. Siddhanta Sharma, Chairman Spice Jet
  7. Mr. VP Agrawal, Member (Planning) AAI
  8. Mr. Gurcharan Bhatura, Director General, FAST.

Executive Council

  • Lt. Gen. (Retd.) K.M. Seth AVSM, PVSM & former Governor of Tripura & Chhattisgarh, President FAST
  • Mr. M. P. Bezbaruah, IAS (Retd.)
  • Mr. Raghu Menon, CMD, National Aviation Company of India Limited
  • Mr. Anil Bhandari, MD International Travel House Ltd
  • Mr. Kanu Gohain, Director General Civil Aviation
  • Mr. Parvez Dewan, CMD India Tourism Development Corporation
  • Mr. R. Krishnan, Consulting Editor Cruising Heights
  • Mr. Raman Sidhu India Head, Corp Affairs Fidelity international
  • Mr. MM Bhagat, Chairman Bhagat Group
  • Mr. Gurcharan Bhatura, Director and Secretary General
  • Mr. B. K. Joshi, Treasurer

Corporate Members and Members from industry

There are many members of this organization which is from the aviation industry. Some are as follows :

  • Mr.Naresh Goyal – (Chairman) Jet Airways (I) Pvt Ltd
  • Mr. Parvez Dewan,- (Chairman & Managing Director)  India Tourism Development Corporation,
  • Mr. Uma S. Bhartia –  (Managing Director )India Glycols Ltd.
  • Mr. Raghu Menon,- (Chairman & Managing Director)  National Aviation Company of India Limited
  • Shri Siddhanta Sharma – (Chairman) SpiceJet Limited
  • Mr. R. Gupta – (Former Secretary)

Ministry of Civil Aviation.

  • Mr. K. Gohain Director General Civil Aviation
  • Mr. V. P. Agrawal Member Planning

Airport Authority of India(AAI).

  • Dr. G. K. Agarwal former Dy. M. D.

Indian Airlines

  • Capt. D. V. Sharma former Director Operations

Indian Airlines

  • Mr. H. S. Bhatia former Member Engg.


  • Mr. Ashok Bhushan former Director Planning

Indian Airlines

  • Mr. V. K. Chandana former Joint DGCA
  • Mr. Nalin Sharma former Chief Architect

Airport Authority of India(AAI).

  • Mr. Daya Kishan former Director Meteorology
  • Mr. B. S. Mathur & Mr. R. C. Gupta both former Chief Engineers of
  • Airport Authority of India(AAI).
  • Mr. Ravinder Sethi a renowned Aviation and Tourism Consultant.
  • And there are other well known members from the industry.

Achievements and major projects handled

Fast is the only research organization in India which has combined both the aviation and tourism under a single umbrella. It is registered with Bureau of Administration and Services(ADB) of International Civil Aviation Organization (ICAO) which in itself implies recognition of its standing.

FAST has successfully completed 17 years in the aviation industry and has conducted several important studies and national and international level seminars and conferences. FAST has played its significant role towards the promotion of Indian Civil Aviation and playing its role in developing cordial relations with International Civil Aviation Organization(ICAO).

So far FAST has successfully conducted seven International conferences and is well known worldwide for its successful world class conferences and seminars. Its seventh International conference “INDIA – ASEAN Needs for Civil Aviation cooperation” was a great success held in February. Its next International conference is going to be held in September 2009.

Ministry of Civil Aviation (MoCA) associated FAST as a member of KAW committee constituted to review the working conditions of the DGCA. FAST was also invited by the Chattisgarh Tourism Board, Raipur, for advice on introduction of ‘Heli’ – Tourism. Also North East Council Sectretary of Shillong had sought its advice to improve ‘Air Connectivity in the NE Region’.

FAST was contacted for advice on setting up of a flying academy in Lilabari airport, Assam. They were seeking suggestion on regulatory mechanism for Civil Aviation for Planning Commission. They were also approached for getting an action plan for development of sustainable tourism in Andaman Nicobar Island.

The major project/studies and research handled by FAST is as follows :

  • Techno- economic feasibility for aircraft maintenance and repair facility
  • Corporate plan for airports authority of India
  • Privatization of airports in India- recent developments and contemporary issues
  • Space tourism- industry of the 21st century
  • Action plan for development of sustainable tourism in Andaman & Nicobar islands
  • Regulatory mechanism for civil aviation
  • Enhancing air connectivity in North east Region
  • Heli- Tourism in Chhattisgarh
  • Setting up of Pilot Training Centre at Lilabari, Assam

List Of publication

  • Aviation and sustainable tourism – emerging trends
  • New horizon on travel and tourism
  • Flight into millennium – aviation and tourism symbiosis
  • Airborne for progress : tourism and aviation
  • Aviation and tourism : synergy for success

Address and contact details

Foundation for Aviation and Sustainable Tourism (FAST)
IInd floor, Old Vayudoot Building
Indian Airlines Complex, Safdarjung Airport
New Delhi-110 003 ( INDIA)
Tel : +91-11-24627100
Telefax : +91-11-24610377
E-Mail:  [email protected]/* */

Chapter 4 Training Academy Civil Infrastructure

4.1 Concept

The campus facilities for Pilots Training Institute are proposed at two locations. The one is within airport boundary. As the facilities like Workshop, rooms of instructors, engineering staff should be within the boundary.

The second Location is outside but near to the airport area. Second location is chosen because it is not possible to locate the facilities within airport boundary. These facilities are Administrative Area, Teaching area, Hostel for trainees, residential area, guest house and club and sports complex.

4.2 Site Study and Interaction


A site has been selected. This land will have to be acquired from Government. The proposed campus site is accessible from main approach road to Airport.

4.3 Planning Criteria and Master Planning

General A detailed study has been done for setting up a Training institute in a healthy and convenient environment with investment as low as possible. Proposal is of providing all essential infrastructure and facilities for training purpose.

Development of buildings, hangar, Apron etc is important but to make provision for support service/Bulk services is also necessary. They are

A) Power Supply

B) Water Supply

c) Sewage System

D) Drainage System

A detailed study survey is considered for power supply of desired load and coordination with local electricity authorities and state electricity board will have to be done to get the required load for power supply available and its confirmation.

  • Water Supply

The source of water supply for the New Campus should be located on the vacant land. The required numbers of deep tube wells are to be bored after carrying out the tests for the expected yields and quality of water. At the campus the necessary pump houses, underground tank and RCC overhead tank should be built. For distribution of water supply, cast Iron pipe water lines of required diameter should be laid from tube wells to underground tanks and from these to overhead tank. Water treatment plants should also be developed to remove impurity if possible.

  • Sewerage System

We have constructed a sewerage treatment plant of required capacity and some independent septic tanks for each block of buildings. It’s necessary to construct sewerage treatment plant for sewerage load of all the building located at new campus site i.e. administrative block, teaching areas and residential complex including guest house, and other individual building in this campus.

  • Drainage System

The entire open land is made to provide natural slope for carrying the rainwater flow to fall in to main storm water drains. Similarly other water drains ( administrative , teaching and residential block ) will join the main storm water drains .

  • Power supply

The power is made available at the flying training school by local Govt. electricity department.

The cost of providing power supply from primary source up to proposed substation at Institutional new campus by state Electricity board/authority has not been included in the estimated cost for power supply system.

It is recommended that one primary source feeder at 11 kv from state Electricity Department should dedicated feeder for the Institute.

The cost of providing power intake at substation of new campus has not been included in this report.

Standby Power – A reliable and uninterrupted power supply is the basic requirement for as aviation training academy. Therefore proposed power supply system shall be so designed that in the event of failure of normal power distribution equipment or a feeder, an alternative source of power can be switched on therefore; the generations of the required capacity for standby power supply will have to be installed. It is assumed that 40% of lighting load and 60% of essential power load will be supplied power, through standby source.

Proposed New Institutional Campus for Pilots Training Institute (Phase – I)

The new campus has been planned to comprise of following five areas: –

  1. Residential Complex.

  2. Administrative Building.

  3. Teaching Campus.

  4. Hostel Block.

  5. Guest House & Club.

The brief scope and concept for design and planning for each of the above complex has been given as below.

a) Residential Complex

The Residential campus including is proposed to located on the vacant land of adjoining to Airport. Existing Road will connect the residential campus to Airport complex.

The residential campus is proposed to have single room hostels for boys and girls,

separate residential Units for executives and other staff, guest house including one for VIP and a recreation club along open space for sports complex.

The layout of residential complex has been planned in a manner with scope for future expansion in a phased manner.

b) Administrative Building An RCC framed structure building (with provision for the floor on top)has been proposed for phase-1. This building has been designed to built and another storey on ground floor for subsequent phase expansion.

The administrative building will consists of following.

  1. Director’s Office

  2. Dy Director (Admin,Finance,Persional etc)

  3. The offices for Senior Faculty/Flying instructor and senior manager.

  4. Main Office

  5. Reception and waiting lounge

  6. Toilet Blocks

  7. Miscellaneous like stairs,kitchen etc

  8. Seminar Room

c) Teaching Complex

The facilities which are primarily meant for class room teaching, seminar/conference rooms, Library, simulator rooms, auditorium etc. are proposed to be provided at the new campus, As already stated the site for the complex is adjacent to Airport and will be accessible from the main approach road to the airport..

D) Hostel Block (Trainees)

In first phase will be about providing hostel facilities (single room) for 25 trainees. This will be a double storied RCC Building with provision for future expansion.

The other facilities to be provided in hostel block will include Common dining hall and kitchen , common room/lounge, separate for boys and girls, warden room/office, toilet block etc.

E) Flying Teaching Complex at Airport

The teaching complex will be near to apron. This teaching complex will consists of following facilities.

A Flying operational offices.

(i) Chief Instructor’s Room

(ii) Instructors Room

(iii) Briefing/debriefing Room

  1. Flight dispatch Room

B Engineering workshop & offices

(i) Chief Engineer Room

(ii) Store Rooms

(iii) Workshop Rooms

C Aircraft Parking Area

  1. Hangar

  2. Apron & Taxi Link

i) Hangar

It will consist of a structural steel hangar of size 25 meter wide and 30 meter long. The height of the hangar will be 8 meter. These will be 2 R.C.C. structure Building to house the facilities for Flying and Engineering workshop & offices

ii) Apron & Taxi-Link

The Apron Area for parking of Aircraft provided is 66m 40m. The provision has also been made for Taxi-link connecting the Apron with Runway for Taxing of Aircraft to Apron & Hanger..

4.6 Hanger Design Concept

The primary function of a hangar is to provide an enclosure for servicing, overhauling and doing repairs on the aircrafts. The hangar will be constructed as structural steel frame and covered with proper type of metallic sheets as roofing.

The hanger will also be provided with facilities like shops and stores for spare parts. The size of hangar has been decided on the basis of the size of trainer aircraft, and numbers to be 1 parked at a time inside the hangar and turning radius of aircraft.

4.7 Furniture & Office Equipment

The detailed break up for working out the requirements of furniture, computers, telephones etc have been taken into consideration separately for Administrative Block, Technical Block, Operational and engineering office and Teaching area.

4.8 Technical Specifications

Teaching/Institutional complex.

Teaching complex, Administrative offices, Trainee Hostels, guesthouses, Auditorium, Residential Quarters for faculty members and staff, club etc. will be R.C.C. framed structure with brick walls.

The External finish of institutional building, administrative Building, club and auditorium will be provided with some permanent superior finish, with weather coating.

Internal finishes of the building will be cement plaster on walls with top finish of oil based distemper/ or other superior finish.

Aluminum doors and windows and first class seasoned wood for doors and windows.

The floor of buildings will be of vitrified tiles or marble with granite combination in the public areas, classrooms & computer hall. All class room and laboratory / workshop will be provided with wall tiles up to a height of 1.50 meter. From floor to provide a permanent finish for walls to avoid periodical maintenance.

Toilets will also be provided with the similar superior finishes. The ceilings of all buildings will be plastered and painted white.

Air conditioners will be provided in all Important Buildings

4.9 Environmental Assessment of Site

The factors like Noise and pollution will be low on the institute as it is in the outskirts.

Surrounding Environment

It is proposed to have plantation of trees and landscaping and greenery will be developed to make Institute more beautiful and attractive.

4.10 Cost Estimate

General: The cost estimates are based on the following technical specifications, scope of work and the assumption.

  1. Prevailing unit are a Market rates for similar Constructions

  2. Market Rate Prevailing rates from Manufacturers/Suppliers.

  3. Market rates based on quotations, wherever possible

Charges @.7% of the cost will have to be added for consultancy, detailed engineering/architectural drawings, structural designs etc. at the time of accord of sanction of project and budget/funds allotment.

In the absence of detailed engineering several details based on the sound engineering practices and experience in the airport works, have been adopted to work out a reasonable and realistic cost estimate.

Summary of Cost – Civil Infrastructure

All the costs are approximations and based on some previous report.

Aircraft & Training AIDS

5.1 It has been observed that the aircraft which are mainly used in India for the training purpose are

5.3 The brief details on some of the training aircraft are as follows: –

5.3.1 Pushpak

Pushpak was designed and developed by Hindustan Aeronautics Ltd. & had been the main stay of training from 1960 onwards. It is seen that 106 Pushpak aircraft are on Indian register. Pushpak is of tail wheel type and side-by-side sitting. These aircraft have lived their utility and are of earlier design concept. Therefore Pushpak aircraft is not in consideration.

5.3.2 Diamond DA 20 Katana

Katana is two-seater light plane manufactured by Diamond Aircraft Corporation, Canada. Diamond had built 331 Katana Also in Canada up to October 1998, when manufacture of the variant was suspended. At least 20 were supplied to Diamond in Austria in 1998. European production of DV 20s terminated with the production of 160 aircraft.

Australian and Canadian production establishments delivered more than 650 DV/DA 20s of all versions by end 2001. DA 20 was produced in various versions with different power plants. DA 20-C1 is powered by Teledyne Continental IO-240-B (125 hp) flat –four driving a Sensenich two-blade wood and composite propeller. Structure of the Aircraft is made mostly of GFRP construction with local CFRP reinforcement in high-stress areas.

Fuselage comprises of two large cells, which are bonded together and incorporate transverse bulkheads in the cabin/center section area and three ring bulkheads in the tail cone. Wings are made out of GFRP and Spar caps are made out of CFRP. Diamond 40 is a four seat light plane powered by Textron Lycoming IO-360 engine of 180 hp. Another new version is DA-40-TDI (133hp) with turbo engine is also available.

5.3.3 Cessna 152

Cessna 152 has been the most successful trainer aircraft produced by Cessna Aircraft Company of USA. Total all types 183, 666 aircraft were produced by this company by 2001. The production of Cessna 152 was stopped in 1980s but resumed production of 172 in 1994. Cessna 152 is side-by-side two seat trainer aircraft of semi-monocoque metal construction. Some of the important particulars of the aircraft are as follows: –

Horsepower: 115 Gross Weights: 1600 lbs

Top Speed: 108 knots Empty Weight: 1040 lbs

Cruise Speed: 103 knots Fuel Capacity: 26.00 gal

Stall Speed (dirty): 42 knots Range: 303 nm

Takeoff Landing

Ground Roll: 735 ft Ground Roll: 445 ft

Over 50 ft obstacle: 1385 ft Over 50 ft obstacle: 1075 ft

Rate of Climb: 670 fpm

Ceiling: 14000 ft

5.3.4 Cessna 172

Cessna 172 has various variants. Cessna 172 Sky hawk is very popular model. It is a four seat light plane. Standard Cessna 172 compared with pre-1986 (172Q) versions, features fuel injected engine; specially developed McCauley propeller optimized for reduced rpm operation; new Honeywell avionics; metal instrument panel with backlit, non-glare instruments; all electric engine gauges, dual vacuum system, digital clock, EGT gauge, hour meter and centrally mounted enunciator panel; stainless steel control cables; epoxy corrosion-proofing; cabin improvements; steps for visual checking of fuel tanks, which have quick-reference quantity tabs, and consolidation of all primary electrical components into a single junction box on the firewall for simplified servicing.

Cessna 172 is all metal semi-monologue construction. It is widely used and is a successful trainer aircraft. It is powered by 160 hp Textron Lycoming IO-360-L2A flat-four piston engine driving a two-blade, fixed pitch McCauley metal propeller. The model 172R is certified to the requirements of U.S. FAA (Federal Aviation Regulation) Part 23 through amendment 23-6, including day, night, VFR and IFR. Some performance details are as follows: –

Horsepower: 160 Gross Weights: 2450 lbs

Top Speed: 123 knots Empty Weight: 1642 lbs

Cruise Speed: 122 knots Fuel Capacity: 42.00 gal

Stall Speed (dirty): 47 knots Range: 580 nm

Takeoff Landing

Ground Roll: 945 ft Ground Roll: 550 ft

Over 50 ft obstacle: 1685 ft Over 50 ft obstacle: 1295 ft

Rate of Climb: 720 fpm

Ceiling: 13500 ft

5.3.5 TB-20

TB-20 is manufactured by M/s. Socata of France. The TB-20 GT version has been certified in January 2001 by DGCA, France. A large number of TB-20 GT Trinidad has been sold to various customers in France and USA. It is of a semi- monocoque construction and is powered by 250 Textron Lycoming IO-540 flat six, driving a two-blade Hartzell constant speed propeller. This aircraft is being used by IGURA for PPL and CPL training. Its leading particulars are as follows: –

Horsepower: 250 Gross Weights: 1600 lbs

Top Speed: 108 knots Empty Weight: 1040 lbs

Cruise Speed: 163 knots Fuel Capacity: 26.00 gal

Stall Speed (dirty): 42 knots Range: 303 nm

Takeoff Landing

Ground Roll: 735 ft Ground Roll: 445 ft

Over 50 ft obstacle: 1955 ft Over 50 ft obstacle: 1075 ft

Rate of Climb: 1130 fpm

Ceiling: 20000 ft

5.3.6 Zlin

ZLIN 242L has been manufactured by MORAVAN AEROPLANES INC of Czech Republic. It is a primary prop trainer sport playing. Total of the 120 aircraft have been delivered by 2002.

Aircraft is a conventional aeroplane and is powered by Textron Lycoming AEIO-360 flat-four engine of 200hp driving three blades constant speed would composite propeller. Some performance details are as follows: –

Horsepower: 200 Gross Weights: 2248 lbs

Top Speed: 124 knots Empty Weight: 1609 lbs

Cruise Speed: 123 knots Fuel Capacity: 31.71gal

Stall Speed (dirty): 64 knots Range: 504 nm

Takeoff Landing

Ground Roll: 1005 ft Ground Roll: 935 ft

Over 50 ft obstacle: 1625 ft Over 50 ft obstacle: 1725 ft

Rate of Climb: 886 fpm

Ceiling: 14760 ft

5.4 Aircraft Operating Flying Cost Per Hour


The total operating cost per hour of flying for typical trainer aircraft and Cessna 172 aircraft has been assumed in the study. Total operating cost consists of fuel, oil, spares and material for maintenance, accident reserve fund, overhauls fund, maintenance and certification of avionics etc. indirect fixed cost will consist of all administrative overheads, depreciation and insurance. Operating Cost of aircraft has been worked out on following assumptions in respect of various components of the total cost.

5.4.2 Basic Price of the Aircraft:

The purchase price of Cessna aircraft could be seen for various make model serial no. from the web site. It is observed that the purchase price of Cessna 172 S.P. of 2000 make and Low on total time is about US $2,40,000/-. From Jane’s All the world’s aircraft book of 2003-2004 it is observed that the cost of Cessna 172 is about US $1,82,000/-. The price of the aircraft is negotiable with the company evaluation. For the present study landed aircraft price is estimated as 1.2 crores including freight and insurance.

5.4.3 Spare engine and aircraft spares:

Experts are of the view that the spare engine for five aircraft is minimum requirement for efficient running of the academy. Also spares at least about 10% of the purchased cost of the aircraft are needed for maintenance purpose. It is considered view of the experts that at least cost of one aircraft towards these elements is needed. Therefore, appropriation of 1.2 crores would be reasonable for the present costing purpose.

5.4.4 Investment estimates for aircraft and related items:

Investments towards purchase of five aircraft, spare engines and aircraft and engine spares are given in the Table – 5.1. Aircraft and engine spares are assumed at 10% of airframe price and 60% of engine price respectively.

Table 5.1

5.5 Assumptions for Operating Cost

5.5.1 Life of the aircraft:

The experts says that the life of an trainer aircraft is usually more than 20 years. The utilization low but due to bad handling by students it may cause the aircraft for repair . Therefore aircraft life of 15 years is assumed.

5.5.2 Residual value:

The residual value of the aircraft is taken 10%.

5.5.3 Annual utilization:

According to DGCA the annual use of an trainer aircraft is 450 hrs. But taking 800 hrs in a flying academy may be appropriate. This will be providing a training of 4 hours a day for 200 clear days in a year.

5.5.4 Depreciation:

To show the real value of cost of operation depreciation value has been considered.

5.5.5 Insurance:

The insurance rates vary from company to company from 3-5% but in this case we have taken it as 3.5% per annum.This includes hull, instructor and third party.

5.5.6 Interest on Investment:

It is not taken in account to calculate operating cost.

5.5.7 Fuel And Oil Cost:

The trainer aircraft uses AvGAS .The cost of the AvGAS varies and is taken about Rs. 75/- per lt. The Transportation cost is to be calculated. Cessna 172 aircraft consumes around 30-35 liters of Av Gas in an hour. Oil consumption is around 4% of the fuel cost.

5.5.8 Maintenance Cost:

It is estimated that materials and spares for maintenance of aircraft and engines/ propellers would amount to approximately Rs 1325 per hour of flying.

5.5.9 Accident Reserve/Overhaul cost:

The cost will be due to overhauling of the engine and is taken Rs.500/-per hour of flying.

Direct Operating Cost Of The Aircraft


Direct Operating cost consisting of various cost elements discussed above are presented in Table 5.2 below.

Direct Operating Cost Of The Aircraft

(For 4000 Hours of Flying)

(Utilization 800 hours p.a.)


5.7 Manpower requirement for the Academy:

Academy will have three wings viz. flying operation wing, engineering wing and administrative wing.

  • In Flying wing there will be a Chief Flying Instructor assisted by two seniors Assistant Flying Instructors (SAFI), 5 assistant Flying Instructors and one Ground Instructor.
  • The Engineering wing which is for maintaining five aircraft will be headed by Chief Engineer assisted by Deputy Chief Engineer, One Quality Control Manager,One assistant Engineer and one Chief Mechanic ,Six workers level junior mechanics and six aircraft hands. One Store Keeper and one Store Clerk cum Typist are also required.
  • Administrative Staff will be Asst. Secretary cum Accountant, Assistant Account, Typist cum Clerk, Attendant cum Clerk, Driver.


The salary structure of personnel has been assumed based on prevailing market conditions and is indicated in the Tables 5.3-5.5 below. The Personnel salaries have been worked out in these tables.

Table –5.3

Indirect Operating Cost

Flying Club

Operation wing

Total salary amount of Operation, Engineering and Administrative wing Fixed cost Rs.1,73,14,000 Rs.4,328.00/-

Annual Operational hrs. 4000/-

Fixed cost per hour 1,73,14,000 = Rs.4,328.00


Note (a) Inclusive of all perks DA, HRA and CCA etc.

(b) The salary projected above is subjected to change.

5.8 Hourly Operating Total Cost:

The operating cost consists of variable cost of maintenance and insurance etc of aircraft. The fixed cost is of flying, engineering and maintenance staff. The total operating cost is equal to the sum of the operating cost and fixed cost as shown in the table 5.6

Table 5.6

It is observed that the total operating cost per hour of flying of Cessna Aircraft will be about Rs.10,500.

5.9 Teaching/Training AIDS

5.9.1 Library

Library is essentially required for an Academy as thus needs to be established. The latest technical books on the subjects relevant for CPL training are to be purchased. The books are available with publishers locally and some of these could be procured from abroad. Manufacturer of the aircraft may suggest some of the books of use to the flying students.

5.9.2 Publications:

Publications of the Civil Aviation Authority is required AIP, AIC, CAR and ICAO publications are required for the library.

5.9.3 Audio Visual:

Training films are available on CD/DVD for PPL, CPL, multi Engine, Instrument Training etc. These have to be procured for quality training for the flying students.

5.9.4 Equipment:

Computer video projectors are needed for classroom training. Computers and projectors with facility of power point projections are available in the market.

5.9.5 Flight Simulators:

Simulator are designed to be used in flight schools to teach/learn students to recognize the function of all instruments present in a fully IFR equipped Cessna 172 Skyhawk aircraft. Model TRC472B, which is approved by JAR. Its cost is about EUR 39,450.

Cost of simulator TRC 472 B 33.53 lacs * 1 Euro = Rs.85.00

Cost of three simulators 100.59 lacs

Cost of advanced simulator 130.00 lacs

Cost of all simulators 230.59 lacs

Spares and other incidentals (@17% 29.07 lacs

Total 255.95 lacs

Rs 2.56 crores approx.

5.9.6 Investments for Training Aids: Investment for training simulators and other training aids is summarized below

Table 5.7

5.10 Maintenance shop: DGCA approved maintenance shops are required to carrying out the maintenance schedules. It is estimated that tools and other equipment and facilities would require investment of Rs.50 lacs.

Chapter 6

Investment Summary


Total investments on civil works for the Training Academy is discussed in Civil Infrastructure. The total estimated investments for construction of Training School, hangars, workshops, hostels etc. is Rs 10.31 crores. This investment is for Phase I during which two batches of 20 pilot trainees each will be inducted.


Investments for induction of five trainer aircraft, with necessary spare engine support and spare parts have been estimated. This fleet of 5 aircraft will provide for 4000 hours of flying training in a year and would cater to training of 20 trainee pilots (first batch) to CPL level, and 20 trainee pilots (second batch) will be trained up to PPL level. The investments on this account are expected to be Rs 7.30 crores.


Training curriculum of pilots requires them to undergo training on simulator. Keeping in view the workload provision has been made to induct three simulators at a cost of Rs 2.56 crores. That a part provision for other training equipment such as overhead projectors, VCD/DVD players, projection systems, computers etc. have been made at Rs 0.20 crores. Provision has also been made for workshop for maintenance of trainer aircraft and Rs 0.5 crores has been provided for the same.


The total investments for civil works, training aircraft, spares support, simulators and training aids, and maintenance workshop are summarized below:

Summary of Capital Investment

6.5 Recurring Annual Expenditure

6.5.1 Civil infrastructure Maintenance Expenditure:

The fixed assets of Civil works proposed for the Training School in Chapter 6 have to be maintained by way of periodic upkeep. The annual maintenance costs is normally assumed between 3 to 5% of the investments costs. At 4% the annual maintenance cost will amount to Rs 40 lakhs.

6.5.2 Flying Training Expenditure:

Operation of aircraft entails expenditure under two heads namely variable cost (Aircraft Fuel, Oil, Maintenance materials etc.) and fixed costs ( Depreciation, Insurance). While the former is related to extent of operations, latter is incurred on annual fixed basis. Aircraft operating Costs are summarized. Based on these estimates expenditure for aircraft operations are worked out below Variable Cost Elements

Cost Rs per hour

Fuel/ Oil 2730

Spare/ Maintenance materials 1325

Accident/ Overhaul reserve fund 500

Subtotal 4555

For Annual fleet utilization of 4000 hours expenditure = 4000*4555

= 182.20 Lakhs

6.5.3 Depreciation

Training Aircraft = 900*4000 = Rs. 36.00 Lakhs

Simulators (10 years St Line) = Rs 25.00 Lakhs

Sub Total = Rs 61.00 Lakhs

  1. Aircraft Insurance = 525*4000 = Rs. 21.0 Lakhs

6.5.5 Personnel Salary Expenditure:

The Training Academy will employ personnel in Flying, Engineering and Administrative wings. The details of staff in each wing and annual expenditure have been estimated and are summarized below:

Flying Wing : Rs. 95.00 Lakhs

Engineering Wing: Rs 71.22 Lakhs

Administrative Wing: Rs 6.92 Lakhs

Total Rs 173.14 Lakhs

Total Annual Expenditure: Annual Expenditure (Recurring) for the Training Academy is summarized below in Table 6.2:

Annual Expenditure (Recurring)

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