1

TITLE PAGE

MASTERS DEGREE IN AVIATION LAW AND AIR TRANSPORT MANAGEMENT

(MALATM)

New Delhi Centre

Consultancy in Airport Sector: Scope and Opportunities

By

Prashanth M R

Roll No. or ID No.

Airport Management

Date of Submission: 05.10.2014

NALSAR Center of Air and Space

University of Law Law

Hyderabad. NALSAR, Hyderabad.

2

TABLE OF CONTENTS

S. No. Chapter Name Page Number

1 Introduction 5-7

1.1 Airport Development in India

1.2 Need of Consultant

1.3 ICAO Policy on Contract of Individual

Consultants/Contractors

2 Objectives and Duties of Airport Consultant 7-10

2.1 Objectives of Airport consultant

2.2 Duties of Airport Consultant

3 Scope and Opportunity of Airport Consultant 10-14

3.1 Airport Planning Services

3.2 Architectural / Engineering services

3.3 Special Services

3.4 Opportunity of Experts in Airport Consultancy

services

4 Selection Methodology of Airport Consultant 14-18

4.1 Technical Parameters

4.2 Financial Parameters

4.3 Qualifying Criteria

5 Conclusion and Suggestion 19

3

TABLE OF CASES CITED

ADB Bank: Selection of Consultant for the development of Airport

Selection of consultant for Review of DPR for Dholera International airport at Dholera SIR, Gujarat

Selection of Consultant for Site Finalization and Development of Taj International Airport,

Uttarpradesh

Selection of Legal consultant to provide legal advisory services for Public Private Partnership in

Development, Operation & Maintenance of Chennai and other airports.

LIST OF STATUTES

1. Airports Authority of India Act, 1994

2. AERA Act 2008

3. ICAO Airport Planning Manual (DOC 9184) Part 3 c Guidelines for Consultant /

Construction services

4. FAA Advisory circular

4

LIST OF ABBREVIATIONS USED

AAI Airports Authority of India

ACI Airport Council International

ADB Asian Development Bank

DGCA Directorate General of Civil Aviation

EOI Expression of Interest

ICAO International Civil Aviation Organization

RFQ Request for Qualification

PPP Public Private Participation

TEFR Techno Economic Feasibility Report

FAA Federal Aviation Administration

LIST OF TABLES USED

Table 3.4 Expert List

Table 4.2 Selection Criteria Evaluation

Table 4.3 Qualification Based Selection Process

5

CHAPTER I: INTRODUCTION

1.1 Airport development in India

India is a vast land of construction opportunity. India is at the threshold of emerging as an economic

power. However, it is recognized that infrastructure holds the key to this transformation. Airport

infrastructure in India is witnessing improvisation and expansion on a massive scale, with the

Government avidly supporting private participants. The Government of India has received proposals

for setting up Greenfield airports at various places all over the country as there is a growing need for

internationally-benchmarked airports. The investment in Indian airport infrastructure market,

especially in the Greenfield projects is increasing with large number of ongoing and proposed

projects.

According to the recent survey, rise in per capita income is making air travel more affordable for

Indian travelers. It is anticipated that air passenger traffic will grow at a CAGR of 16% during FY

2012 to FY 2015.

The need for internationally benchmarked airports is increasing in nation. Therefore, non-metro

cities are getting authority's attention so as to develop Greenfield projects under Public private

partnership in various parts of country so as to boost tourism and trade in the region.

So the need of airport consultant is required for providing subject matter support to the Airport

Authority / the private airport. The subject matter expert namely the consultant having expertise in

the area of Airport Planning, Airport Design and Development, Architectural and Engineering

aspects of designing / construction of a airport, Legal consultation for providing the legal framework

in and around the airport premises etc.

The following chapters will explain in detail about the Need of consultant, Different kind of airport

consultant, Selection Methodology of the consultant etc

6

1.2 Need of Consultant

As air transport expands at an increasingly rapid pace, civil aviation regulatory institutions face more

complex challenges to enhance flight safety and security to protect consumers and sustain

development

“A consultant is usually an expert or a professional in a specific field and has a wide knowledge of

the subject matter”

Consultant provides training and technical support in a diverse range of economic and technical

areas as well as advisory services to help your organization develop its own procedures and practices

Consultant, turn ideas and visions into success stories.

Consultant leverages his / her strong aviation IP base to provide strategic and implementation

advice, with the fast delivery of solutions so that the clients can implement and knowledge transfer

into their management teams as required.

1.3 ICAO Policy on Contract of Individual Consultants/Contractors

An individual consultant is a person who is a recognized authority or specialist in a specific field

engaged by ICAO in an advisory or consultative capacity for a finite period of time and linked to

deliverables. An individual consultant must have special skills or knowledge not readily available

within ICAO or not normally possessed by the regular staff of ICAO and for which there is no

continuing need in ICAO. An individual contractor may be engaged by ICAO from time to time to

provide expertise, skills or knowledge in the performance of a specific task or piece of work. The

work assignment may involve full-time or part-time functions similar to those of staff members. The

functions of an individual consultant or contractor shall not include any representative, certifying,

supervisory or approving responsibilities.

7

Building a new airport, adding new facilities or attracting new airlines is a highly complicated,

lengthy and costly undertaking. IATA takes a leadership role in assisting airports worldwide to meet

airline requirements for safety, efficiency and functionality.

We offer unequalled expertise and experience to help you plan efficiently, avoid costly mistakes and

profit from unseen opportunities.

CHAPTER II: OBJECTIVES AND DUTIES OF THE AIRPORT

CONSULTANT

2.1 Objectives of Airport Consultant

In Indian context the construction, development, operation and maintenance of the airports are

divided into two concepts namely:

Green Field Airport Greenfield Airport means a new airport which is built from scratch in a new location

because the existing airport is unable to meet the projected requirements of traffic.

Brown Field Airport Those projects which are modified or upgraded from existing facilities are called

Brownfield projects.

Following are the main objective of the Airport Consultant who provides consultancy services for

the establishment of new Greenfield airport

To review the present laws and rules guiding the location and development of Greenfield

Airports in the country

To identify the best possible site for the development of airport

To provide important considerations for technical operation.

To carry out necessary surveys / studies for evaluating site options and selecting the best

possible site

Preparation of Techno-economic Feasibility Report

8

Master plan of the Airport

The Bid Documents and Concession Agreements and

The selection of the Developer etc

Airport Planning & Development

Master Plan including Terminal Concepts, Runway and Apron Systems

Capacity / Demand Analysis

Level of Service

Passenger, Aircraft and Baggage Simulation

Master Plan Review

Technical Due Diligence

Airport Operations

Airport Process Reengineering and Optimization

Facilitation

Safety and Security

ORAT Review

Traffic Forecasting & Development

Air Service Development and Marketing Strategy

Traffic Forecasting

Traffic Forecast Review and Due Diligence

Business Planning

Airport Non-Aeronautical Activities

Business Planning and Implementation

Airport Transactions and Privatization

2.2 Duties of Aviation / Airport consultant

Aviation consultants works with an aviation company, aviation attorney or insurance company

providing solutions on complex technical issues.

9

An aviation consultant helps clients understand the latest and the best aviation practices. The

consultant may also be responsible for overseeing the procedures of surveillance of air traffic, as

well as developing and implementing aviation certification programs.

The prerequisite for the job is a bachelor’s degree in aviation administration. Prior experience in

commercial airline industry is desirable for a better job prospect.

2.2.1Operational Analysis

The aviation consultant establishes new policies and consults the management for the best

operational analysis strategies that suit the needs of the client.

The primary duty of the aviation consultant is to conduct technical reviews aimed at evaluating the

welfare of operational analysis of airport design and development, and airport safety performance.

2.2.2 Skills to Advise

Airport consultants must be knowledgeable about the latest industry trends. The consultant he/she

should have knowledge of FAA rules, ICAO rules & Annexure and the process of gaining necessary

certifications.

The consultants need to have good analytical skills in order to interpret various sources of

information and make recommendations to clients.

Airport consultants should also have interpersonal skills to develop relationships with existing and

potential clients.

2.2.3 Assisting Clients

The airport consultants work with clients on a daily basis. According to the website of Aero

Consulting Experts, aviation consultants must first ascertain their clients' needs before providing

services.

Upon being contracted, consultants perform a case assessment of the company and create a plan of

action.

In some situations, the company may be dealing with a recent airport development and the aviation

consulting firm acts in a public relations capacity. Another client may be in need of extensive work

on its airport planning, and the consultant negotiates the provision and provides the phase wise

costing.

10

2.2.4 Engineering and Design

The aviation consultants also provide engineering assistance to industry designers. For instance, India

Aviation Consulting and Support LLP, a national aviation consulting firm, specializes in the provide

consultancy services in construction of airports. Preparation of Aerodrome Manuals, Feasibility studies etc.

As an aviation engineering consultant, the consultant will work with large aircraft manufacturers or

government officials in localities with airports. The consultant provide expertise in design, appropriate use

of space and innovative building techniques

CHAPTER III: Scope and Opportunities in Airport Consultant Services

There are two separate and distinct scopes of consultant services that are utilized for projects

conducted under airport grant programs. The first category involves Airport Planning services. The

second involves Architectural / Engineering services for the design and construction supervision /

inspection of airport projects

These two categories of consultant services are discussed below:

3.1. Aviation planning services.

This category involves studies under the broad headings of airport system and master planning, Site

selection, Traffic forecasting, marketing strategies, environmental assessments and related studies.

These studies include, but are not limited to the following activities:

Design study to establish the framework and detailed work program

Airport data collection and facility inventories

Aeronautical activity forecasts and demand/capacity analyses

Facility requirements determination

Airfield modeling for capacity and delay

Airport layout and terminal area plan development

Airport noise study

Compatible land use planning in the vicinity of airports

Airport site selection studies

Airport development schedules and cost estimates

11

Airport financial planning and benefit cost analysis

Participate in public information and community involvement programs and/or public

hearings relating to airport development and planning projects

Environmental Assessment (EA), Environmental Impact Assessment (EIA) and other studies

in accordance with ICAO standards and Recommended practices..

Airspace analysis

3.2 Architectural / Engineering services for airport development projects

This category includes the basic A/E services normally required for airport development projects. It

involves services generally of an architectural, civil, geotechnical, structural, mechanical, and

electrical engineering nature. The basic services are usually conducted in, but are not limited to, the

four distinct and sequential phases summarized below:

3.2.1. Preliminary Phase

This phase involves those activities required for defining the scope of a project and establishing

preliminary requirements. Some examples of activities within this phase of a project include, but not

limited to

a) Conferring with the sponsor on project requirements, finances, schedules, early phases of the

project, and other pertinent matters and meeting with ICAO and other concerned agencies

and parties on matters affecting the project.

b) Planning, procuring, and / or preparing necessary surveys, geotechnical engineering

investigations, field investigations and architectural and engineering studies required for

preliminary design considerations.

c) Developing design schematics, sketches, environmental and aesthetic considerations, project

recommendations and preliminary layouts and cost estimates

12

3.2.2 Design Phase

This phase includes all activities required to undertake and accomplish a full and complete project

design.

Examples include, but are not limited to, those below

a) Conducting and attending meetings and design conferences to obtain information and to

coordinate or resolve design matters

b) Collecting engineering data and undertaking field investigations; performing geotechnical

engineering studies; and performing architectural, engineering and special environmental

studies

c) Preparing necessary engineering reports and recommendations

d) Preparing detailed plans, specifications, cost estimates, and design/construction schedules.

e) Preparing construction safety plans

f) Printing and providing necessary copies of engineering drawings and contract specifications

3.2.3 Bidding and Negotiation Phase

These activities are sometimes considered part of the construction phase. They involve assisting the

sponsor in advertising and securing bids, negotiating for services, analyzing bid results, furnishing

recommendations on the award of contracts, and preparing contract documents.

3.2.4 Construction Phase

This phase includes all basic services rendered after the award of a construction contract, including,

but not limited to, the following activities.

a) Providing consultation and advice to the sponsor during all phases of construction

b) Representing the sponsor at preconstruction conferences.

c) Inspecting work in progress periodically and providing appropriate reports to the sponsor.

d) Reviewing and approving shop and errection drawings submitted by contractors for

compliance with design concept/drawings

e) Reviewing, analyzing and approving laboratory and test reports of materials and equipment

13

f) Preparing and negotiating change orders an supplemental agreements

g) Observing or reviewing performance tests required by specifications.

h) Determining amounts owed to contractors and assisting sponsor in the preparation of

payment requests for amounts reimbursable from grant project.

i) Making final inspections and submitting check lists and a report of the completed project to

the sponsor

j) Reviewing operations and maintenance manuals.

3.3 Special Services:

The development of some projects may involve activities or studies outside the scope of the basic

design services routinely performed by the consultant. These special services may vary greatly in

scope, complexity, and timing and may involve a number of different and fields of expertise.

Consultants performing special services may be employed directly by th sponsor to implement one

or more phases of a project or may be employed by the principal consultant via a subcontract

agreement. In certain instances, these services may be performed by the principal consultant. Some

examples of special services that might be employed for airport projects include, but are limited to,

the following:

a) Soil investigation – which includes core sampling, laboratory y tests, related analyses and

reports

b) Detailed mill, shop, and / or laboratory inspection of materials and equipments

c) Land surveys and topographic and contour maps

d) Field and / or construction surveys

e) Onsite construction inspection and / or management involving the services of a full time

resident engineer (s), inspector (s), or manager (s) during the construction or installation

phase of a project.

f) Special environmental studies and analyses

g) Expert witness testimony in litigation involving specific projects

h) Project feasibility studies

14

i) Public information and community involvement surveys, studies and activities

3.4 Opportunities of Experts in Airport consultancy services

Sl. No. Specialist

1 Aviation Sector Expert

2 Expert in Airport Development

3 Expert in Civil Aviation Industry

4 Transportation Planner

5 Transport Economist

6 Architect Urban planner

7 Airport Master Planner

8 Survey Engineer

9 Financial Specialist

10 Concession Agreement / Legal Expert

11 PPP Expert

Table 3.4 – Expert List

CHAPTER IV: SELECTION OF AIRPORT CONSULTANT

The selection of consultants must be made on the basis of fair negotiations and equitable fees an

through selection procedures that are professionally acceptable, ensure maximum open and free

competition, and avoid any suggestion of unfair or unethical conduct.

Consultants employed for work on projects involving airport must be responsible and posses the

ability to perform successfully under the terms and conditions of the proposed procurement.

Considerations should be given to such matters as integrity, record of past performance, extent of

experience with the type of services required by the sponsor, technical resources and accessibility to

other necessary resources.

15

The airport authority or the state government or the private airport developer publishes the

opportunities in the form of tender in the media for the selection of the consultant for the

development of the airport. The tender is mainly of two stages bid system.

The tenderer will provide the minimum qualifying criteria to which the consultant shall satisfy the

minimum parameters set by the tenderer.

Technical Parameters

Financial Parameters

4.1 Technical Parameters

The selection criteria include, but are not limited to, the following:

a) Capability to perform all or most aspects of the project and recent experience in airport

projects comparable to the proposed task,

b) Key personnel’s professional qualifications and experience and availability for the proposed

project; their reputation and professional integrity and competence and their knowledge of

ICAO / FAA regulations, policies and procedures

c) Current workload and demonstrated ability to meet schedules or deadlines

d) Quality of projects previously undertaken and capability to complete projects without having

major cost escalations or overruns.

e) Qualification and experience of outside consultants regularly engaged by the consultant

under consideration.

Example: The tenderer or the contractor shall set the minimum technical qualifying criteria as well

as the weight age for the parameter

Experience of consultancy services for project development of Domestic / International

airport

Experience of consultancy for successful selection of project developers in aviation / tourism

sector on PPP basis and finalization of contract agreements

16

Experience of consultancy services for developing infrastructure projects other than aviation

and tourism sector

Technical Team which comprises of sector expert and the key personnel with their CV’s

4.2 Financial Parameters

The tenderer will set the following parameters for the eligibility of the consultant to take over the

project

The consultant should have average annual turnover from the advisory / consultancy services

for last three financial years

The consultant should have average Net worth as per last audited financial sheet

S.No. Criteria Total Mark Marking System

1 Experience of consultancy services

for project development of

Domestic / International airport

2 Experience of consultancy for

successful selection of project

developers in aviation / tourism

sector on PPP basis and

finalization of contract agreements

3 Experience of consultancy services

for developing infrastructure

projects other than aviation and

tourism sector

4 Technical Team which comprises

of sector expert and the key

personnel with their CV’s

5 average annual turnover from the

17

advisory / consultancy services for

last three financial years

6 average Net worth as per last

audited financial sheet

Table 4.2 Selection Criteria Evaluation

4.3 Qualifying Criteria: Bidders securing 80% marks in Technical Bid shall qualify for opening of

Financial Bid.

The weightage to Technical and Financial Bids would be 80% and 20% respectively.

a) Technical Bid: The total marks obtained out of 100 marks in Technical Bid shall be scaled down

to a maximum of 80 as follows which shall henceforth be the total marks obtained by the Bidder

against the Technical Bid:

Marks (maximum 80) on Technical Bid (A) = 0.80 x Marks of Technical Bid under evaluation

b) Financial Bid: The least Financial Bid would be best Financial Bid and shall be awarded 20

marks. Other Financial Bids would be awarded marks out of maximum 20 based on following

formula :

Marks (maximum 20) on Financial Bid (B) = 0.20 x (Lowest Financial Bid/ Financial Bid under

evaluation) x100

c) Total Marks = A+B

d) The Bidder scoring maximum Total Marks would be recommended for selection.

18

Table 4.3 Qualification Based Selection Process

19

CHAPTER V: CONCLUSION & SUGGESTIONS

5.1. CONCLUSION

From the view point of the above chapters, i am concluding that “Airport consultants provide

technical advice and services to sponsors on the development, improvement and expansion of

airports, and they are very knowledgeable in their respective areas of expertise.

Chapter 1, explains the necessity of the consultant to review the project to determine what is

required and expected of the consultant.

Chapter 2 & 3 explains the roles and responsibility & the scope of the consultant, the selected

consultant is to review the project proposed, site identification and site selection based on the critical

aircraft in use in the proposed airport, to prepare the pre-feasibility, feasibility and the Techno-

Economical Feasibility report. Once the proposed TEFR is accepted by the sponsor , the consultant

have to prepare the DPR – Detailed Project Report which contains the land use plan, proposed

critical aircraft in use, Master plan, Financials etc.

Chapter 4 explains the selection methodology adopt in the selection of consultant as per ICAO and

FAA advisory circulars. The well defined scoring system and the rate of Statement of Qualifications,

technical and financial criteria which provides the consultant technical as well as the financial

background to undertake the proposed project

__________**________

20

BIBLIOGRAPHY

1. US DOT FAA Advisory Circular “Architectural, Engineering and Planning consultant services for

Airport Grant projects

2. Reference Guide for Airport Consultants PDF from Airport Council of Consultants

http://www.acconline.org/content/navigationmenu/resources/acclibrary/quick_reference_guide.pdf

3. ADB: Selection of Consultant for the development of Airport

4, Selection of consultant for Review of DPR for Dholera International airport at Dholera SIR,

Gujarat by Airport Authority of India website

5. Selection of Consultant for Site Finalization and Development of Taj International Airport,

Uttarpradesh by Government of Uttarpradesh

6. Selection of Legal consultant to provide legal advisory services for Public Private Partnership in

Development, Operation & Maintenance of Chennai and other airports –Airport Authority of India

Website