1

University of Petroleum and Energy Studies

Bidholi: Dehradun

Workbookfor

Aviation Management Industrial Tour to Bengaluru

(9th – 11th February 2010)

Name: __________________________

Roll No. _________________________

Master of Business Administration(Aviation Management)

Batch 2009-11

Designed and Developed by:

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Personal Details of the Student

Name: ________________________________

Date of Birth: ________________________________

Father’s Name ________________________________

Mother’s Name ________________________________

Permanent Address ___________________________________________________

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Personal Phone No ____________________

Parents Phone No _____________________ ICE* _________________

Blood Group: ______________________

Any Specific Ailment _________________________________________________

Medicines being taken for the ailment __________________________________

Allergic to Medicine (if any) ____________________________________________

*[In case of emergency call this number]

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My Perception of knowledge which I would like to derive from this Industrial Tour

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Day 1 (February 9, 2010): Visit to Bangalore Airport

BRIEF OF BANGALORE INTERNATIONAL AIRPORT LIMITEDBangalore International Airport Limited (BIAL), the owner and operator of the new BengaluruInternational Airport, is a public limited company, registered under the Indian CompaniesAct. A private-public venture, the project realized so far and the upcoming phases are beingbuilt and will be operated by the company for the next 30 years with an option to continue foranother 30 years.

BIAL is committed to establishing the new Bengaluru International Airport as India’s leadingairport in terms of quality and efficiency and set a benchmark for the future commercialdevelopment of Indian airports. The airport is built and operated on par with internationalstandards.

Bengaluru International Airport- Gateway to South IndiaBangalore, the IT capital of India now has an international airport on par with globalstandards. The Bengaluru International Airport can earn the city of Bangalore the uniquedistinction of becoming the regional hub for South India. With all the new internationalflights, it has already marked the beginning of better connectivity between India and the restof the world.

History: Realizing phase 1It took almost a decade from the stage of land allocation to acquisition to signing of theshareholder agreements in January 2002 and finally the start of construction. By the time BIALhad to negotiate the legal framework, the Government of India had already planned toprivatize other airports. BIAL being the first private airport in India had to set the rightprecedence for the other private airports and therefore all agreements like the concessionagreement, CNS ATM agreement, etc. had to be finalized carefully.

The main observation during the formation of the legal framework was the unprecedentedgrowth the aviation industry faced. India’s economy experienced a remarkable growth trendand Karnataka’s growth levels were seen even slightly above the national level mainly owingto the positive development of Bangalore as the Silicon Valley of India, and also the stronggrowth of other sectors like pharmaceuticals and biotechnology. At the same time the reformoriented Government of India liberalized the civil aviation sector by allowing domestic playersto come up with more private airlines and sanctioning more foreign airlines to fly into India.

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These two factors, growth of economy and civil aviation liberalization led to a significantlyincreased demand for air travel and resulted in soaring traffic figures. BIAL now had to verifythe airport capacity and take necessary steps to make the airport practical for years to come.

When the project was designed initially, BIAL had anticipated a traffic volume in the first yearof the operation that was already reached by the time the construction started. The bigchallenge was to significantly increase the project which was already under constructionwithout jeopardizing the initial airport opening date. The redesign process along with theformal approval took more than 9 months and by the time the increased project wasapproved, half of the construction was complete. The first phase of the airport opened foroperations on May 24, 2008.

Shareholders

BIAL is a Public Limited Company comprising of the following major shareholders

Private Promoters:

Siemens Project Ventures, GmbH, Germany 40%

Mumbai Airport Developers Private Limited(a wholly owned subsidiary of GVK Power & Infrastructure Limited), India:

29%

FlughafenZurichAG, Switzerland 5%

State Promoters:

Karnataka State Industrial Investment & Development Corporation Limited 13%

Airports Authority of India 13%

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Legal framework

Concession AgreementThe Government of India has granted the exclusive right and privilege to BIAL to carry out thedevelopment, design, financing, construction, operation and management of the airport for aperiod of thirty years from airport opening date with an option to extend the concession foranother 30 years.

No new or existing airport will be permitted to operate as a domestic or international airportwithin 150 kilometres. The Government of India, represented by the Ministry of Civil Aviation,is committed to equal treatment and non-discrimination of all international airports and torenew the bilateral agreement constantly.

The concession agreement recognizes that BIAL may carry out any activity or business inconnection with handling of aircraft, passengers, baggage and cargo at the airport. BIAL mayat any time grant the service provider rights to any party for the purpose of carrying out suchactivities on such terms and conditions as are reasonably appropriate.

Shareholders AgreementA shareholders agreement was signed between the Karnataka State Industrial Investment andDevelopment Corporation Limited, the Airports Authority of India, Siemens Project Ventures,Unique Zurich Airport, Larsen and Toubro Limited and Bangalore International AirportLimited on 23 January 2002.The purpose was to develop an airport with private sectorparticipation at Devanahalli near Bangalore in the state of Karnataka, India as a greenfieldproject. The agreement specified the percentage of issued and paid up share capital of BIAL aswell as its break up between the private and state promoters. Private promoters would hold74% of the equity while the state promoters would hold the remaining 26%.

Operation & Management Services AgreementAn operation and management services agreement was executed between Unique Zurich andBangalore International Airport Limited in April 2005. Under this agreement, Unique willprovide, procure and coordinate the provision of operation, management and maintenanceservices to the new Bangalore International Airport. The aim will be to ensure that the newBangalore International Airport is operated and managed as a world-class, state-of-the-art,international airport.

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State Support AgreementAn agreement was signed between the Government of Karnataka and Bangalore InternationalAirport Limited on 20 January 2005 wherein the former will provide financial support toimprove the viability of the new airport project and enhance the bankability of the initialphase. In pursuance of this, the Government of Karnataka appointed agency, the KarnatakaState Industrial Investment and Development Corporation has provided the airport site toBIAL free from all encumbrances under the Land Lease Agreement. Also, a state supportagreement of Rs. 350 crores would be made available by the Government of Karnataka to BIALfor the purpose of this project

EPC AgreementAn agreement was executed on 11 March 2005 between BIAL and the EPC contractors - Larsenand Toubro, Siemens Limited and Siemens AG, under which the latter will design, procure,construct and complete the new Bangalore international airport project on a lump sum,turnkey basis.

Land Lease AgreementA Land Lease Agreement was executed on 20 June 2005 between the Karnataka StateIndustrial Investment and Development Corporation (KSIIDC) and BIAL under whichKSIIDC, the owner of the airport site of approximately 4000 acres, will lease it out to BIAL.

CNS/ATM AgreementA CNS/ATM agreement was signed in April 2005 between the Airports Authority of India(AAI) and BIAL under which the former is responsible for the provision of air traffic services.

Fast FactsLocationThe airport is 40 kilometers from the center of Bangalore.

OpenedOfficially opened: May 24, 2008First day of operations: May 24, 2008

OperationalOperational 24 hours a day, 365 days a year

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Land areaSpread over an area of approximately 4000 acres

EmployeesOver 5000 employees are currently employed at the airport, including BIAL andconcessionaire employees

TerminalBuilt on a footprint of eight acres of land, the terminal building of the Bengaluru InternationalAirport is spread over 71,000- sq mts. While the terminal building is built to comply with thepeak hour demand of approximately 3000 passengers per hour, we are yet to see passengertraffic hit this number at the airport. It is well equipped to handle the increasing trafficvolume for the next few years. Phase-One, which includes the three-level Terminal Building atBengaluru International Airport, brings considerable respite to the average passenger throughelimination of long queues and archaic dual check in processes.

IT SystemsRESA CUTE, BRS, UFIS, SAP Based Aviation billing PC and 2D barcode based Boarding GateSystems.

Car ParksPhase 1: approximately 2000 vehicles and 75 coaches

Check in countersCute enabled check in desks: 53Self Check-in kiosks (CUSS): 18

Security countersDomestic: 8 Airport Security Units (APSU), 1 X-Ray per APSUInternational: 5 APSU’s; 1 X-Ray per APSUFive level security screening system for checked baggage

Immigration countersDeparture: 18, Arrival: 18

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Baggage CarouselsTotal 7 carousels: 3 for domestic and 2 for international arrivals; in addition2 carousels can be used for domestic or international

Length - 2 x 59 meters; 3 x 53 meters; 2 x 97 meters

Aircraft1100 flights (international and domestic) operate from Bangalore International Airport everyweek on an average.

RunwayRunway orientation 09/27Runway length 4000 mWidth 45 mWidth of runway plus light paved shoulders 60 m

CAT – 1 ILS on both ends of the runway

ApronThe layout of the apron and terminal has been designed to reflect international standards.

Initial phase includes 42 code C aircraft stands

TaxiwaysCode E aircraft, two high speed exit taxiwaysBituminous structural pavement width of 25m (code F)Width of taxiway plus unpaved shoulder width of 45 m

Boarding gates/ aerobridges

Total boarding gates: 20Aerobridges: 8 (One double arm aerobridge)9 bus bays for arrival and departure

CargoA dedicated bay in the terminal apron is earmarked for freight aircraft. Cargo warehouseshave the capacity to handle approximately 350’000 tons of cargo annually.

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Air Rescue and Firefighting servicesThe airport provides CAT-9 level of protection as per ICAO standards to enable all the largestcommercial aircrafts operated in the country currently.124 inclusive fire fighters and officers.Trained by trainers from Austria and Zurich airport fire chief.

Fire tenders 44 Airfield Crash Fire Tenders imported from Rosenbauer, Austria.

Airlines – InternationalPassenger airlines: Air France, British Airways, Lufthansa, Air India, Sri Lankan Airways, GulfAir, Emirates, Singapore Airlines, Malaysian Airlines, Thai Airways, Air Arabia, Oman Airways,Air Mauritius, Tiger Airways, Dragon Air, Kingfisher Airlines.

International freighters: Singapore Airlines Cargo, Lufthansa, Etihad, Sri-Lankan Cargo, AirIndia Cargo.

Airlines – DomesticPassengers Airlines: Jet Airways, Jet Lite, Air India, Kingfisher Airlines, Indigo, Spice Jet,Paramount

Domestic freighters: Blue Dart, Air India Cargo.

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Some specific question which could be asked from Conducting Official of BIAL

1. BIAL is the state of the art airport, what are its USPs is and how it is different from newHyderabad airport?

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2. What is handling Capacity of BIAL ?Passengers (Millions)

International Domestic

Departure

Arrival

3. What is average time taken for the passenger to check in?Domestic ______________________

International ______________________

4. What is the capacity to handle aircraft per hour at BIAL?

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5. What type of Baggage screening is being done at BIAL?

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6. What is In-line Baggage handling system?

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7. In case of security emergency what are the plan with BIAL to deal with it?

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8. What are the future plans of BIAL as it is seen as a gateway to South India?

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9. How is the functioning of AOCC of BIAL and its contribution in the monitoring of flightmovement?

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10. What are the Non-aeronautical sources of income?

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11. What is the BREAK EVEN point of BIAL

(i) Passenger Nos. ________________________

(ii) Revenue in INR ________________________

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Students to frame Five questions on their own and also write their answersbased on observations and clarifications sought.

Question No 1.

Answer:

Question No 2.

Answer:

Question No 3.

Answer:

Question No 3.

Answer:

Question No 5.

Answer:

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Observation SheetKindly observe and fill the various columns1. Baggage handling on Arrival (Efficiency; Time taken to deliver first & last piece of

baggage; Quality of handling cases of short landing / damage of baggage)_________________________________________________________________________________

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2. Check in counter (Efficiency; Appearance of Counter; Behaviour of Staff; Query handling)_________________________________________________________________________________

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3. Baggage screening (Stages of baggage screening and the process to deal with thesuspicious looking contents in the baggage)

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4. Passenger facilitation (Facilities available for handling of VIPs, Unaccompanied Minors,Incapacitated passengers)

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5. Passenger Amenities (Concessionaries)

(i) Book Stall

(ii) Cafeteria

(iii) Kids corner

(iv) Washrooms

(v) Souvenir shops

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Write down the summary of the experience gained of the Day 1 (notmore than 100 words)

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DAY 2 (February 10, 2010): VISIT to TAAL

Brief history of TAAL

Group Overview

Formed in 1988 as a company with limited liability, with the objective of dealing inaero planes and all the parts and accessories which can be used in aerial conveyance.

Promoted by B.R. Taneja & The INDIAN SEAMLESS METAL TUBES LTD.

TAAL commenced operations in 1994 with the manufacturing of aircraft P68C, with193 employees employed. At the same time the company went for a public issue, andgot registered in BSE & NSE.

Since then TAAL has worked to its diversification in the aviation industry.

Largest fixed-wing-air-charter operator in India.

TAAL has DGCA Maintenance approved under CAR 145 for maintenance of Aircraft ofdifferent types

Geographical Location

The Company owns a 350 acre site at Hosur (50 km south of Bangalore, with closeproximity to 'Electronic City', the software hub of Bangalore) on which the Companyhas setup it own airfield and hangar facilities.

The airfield is also used by a number of other Indian companies for parking theiraircraft as well as for commuting to and from Hosur.

Business Operations

Designing and consultancy on purchase of the aircrafts.

Sale of Aircraft and chartering

Aero structures

Airfield services

General aviation aircrafts manufacturingTAAL offers complete solution for construction of Airfield and related infrastructurewhich includes Feasibility Report, Master planning, Detailed Engineering designs forall areas, Documentation for Approval from authorities, Construction of Runways andallied structures, Hangar and Office Construction, furnishing, landscaping etc. This isachieved through internal team and Associate experts and Contractors from variousdisciplines with whom TAAL has been associated for construction of Own Airport atHosur and offer the experience and expertise gained in completing own facilities.

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MRO services

Organization dealing with

Main market of raw material is U.S, Malaysia, England.

Apart from manufacturing and operating aircrafts, TAAL also manufactures parts andassemblies for various government organizations like:

HAL (LCA, IJT, ALH)

NAL (Saras, Hansa)

ISRO (GSLV, PSLV)

ADE (PTA- Lakshya, UAV- Nishant)

IAF (cheetah helicopter)

INF (parts for sea king aircraft

TAAL represents the Cessna Aircraft Company for their Citation range of Business Jetsin India (since 1995).

Undertaken certain sub-contract work for the Israel Aircraft Industries (ISI) in India.

Night vision systems for the cheetah helicopter

Main operations

Main production operation pursued by the company is MAKE TO ORDER.

Pre-installation R&D is based on the clients.

Manufacture of light aircrafts with collaboration of U.S. companies – Thorp T-211.

TAAL has recently signed a agreement with Air Works Commercial MRO Services (P)Limited for setting up a Airfield & MRO business

Aerospace structure maintenance Facilities

Tooling

Machining

Sheet Metal Fabrication

Composite Manufacturing

Heat Treatment

Chemical Treatment

MRO Facilities

Assembly Hangar: 70m*30m*8m

Runway

Aircraft Hangars : 45m*50m*15m

Apron parking : 90m*110m

ATC tower of height 22.25m

Aircraft washing and cleaning services

Ground support equipments

Current Operations

SARAS for NAL, frame except the wings by HAL.

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NISHANT for ADE.

Tail-cone, nose-cone, air-intake for LAKSHYA, PTA (Pilotless Target Aircraft).

Sheet Metal Parts for ALH (Advanced Light Aircraft), LCA (Light Combat Aircraft);projects of HAL.

Space structures for PSLV and GSLV of ISRO.

15 parts for light aircrafts, each costing Rs. 6.5 lakhs. Expected to increase to 25 by2015.

Future Prospective

General aviation aircraft1) Tie-up for the manufacture of other light aircraft, especially in the Light Sports

Category, in discussions with various manufacturers.2) Expand product offering by representing a Rotary Wing Aircraft manufacturer in

India, in discussion with manufacturers

Air Charters1) Expand Charter aircraft network and also flying training business.2) Tourism3) Flying club

Aero Structures1) Expansion of work available from ISRO and HAL. Set up ancillary facilities for the

production of advanced composite products.2) Work from Tier 1 subcontractors to Airbus and Boeing.3) Expansion of cabin parts business by selling to foreign airlines.4) Heat shields for satellite projects

Airport services1) Develop the existing airfield as a secondary regional airport to Bangalore/Electric city.2) Provide parking for aircrafts arriving at Bangalore airports

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Some specific question which could be asked from Conducting Official ofTAAL

1. What is the role of TAAL in the development of indigenous facilities for Aircraftmanufacturing?

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2. How TAAL is developing MRO concept in India? What are their plans with regard toAirbus Industries?

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3. How TAAL is associated with HAL/ADE/NAL?_________________________________________________________________________________

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4. How TAAL has contributed in Corporate Social Responsibility (CSR) activities to improvethe habitat conditions in the community where it is located?

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5. How may employees are working in TAAL_________________________________________________________________________________

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6. What is the annual turnover of TAAL in terms of MRO and Aircraft manufacturing?_________________________________________________________________________________

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7. What is the scope of getting internship and /or employment in TAAL?_________________________________________________________________________________

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8. What is the HR Policy of TAAL?_________________________________________________________________________________

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9. What are the future diversification plans of TAAL?_________________________________________________________________________________

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10. Does TAAL has Design and Development division? If so, what are the activities?_________________________________________________________________________________

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Students to frame Five questions on their own and also write their answersbased on observations and clarifications sought.

Question No 1.

Answer:

Question No 2.

Answer:

Question No 3.

Answer:

Question No 3.

Answer:

Question No 5.

Answer:

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Observation SheetKindly observe and fill the various columns

1. ATC (Height of the Tower; Navigational Aids; Communication Aids, etc)

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2. Tarmac / Apron (Dimension of Tarmac; Number of parking bays; Lighting system, etc)

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3. Hanger (Specification and Type of Aircraft which can be parked)

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4. Fire Fighting Equipments (Category & Type of equipments and number of Fire Tenders)

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5. Emergency Drill Mechanism (Training of manpower for fire fighting drill)

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6. Manufacturing of Aircraft (Type and Capacity per year)

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Write down the summary of the experience gained of the Day 2 (not

more than 100 words)

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Day 3 (February 11, 2010): Visit to HAL Museum

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. TheCompany was formed by the merger of Hindustan Aircraft Limited with Aeronautics IndiaLimited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with extraordinaryvision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited atBangalore in association with the erstwhile princely State of Mysore in December 1940. TheGovernment of India became a shareholder in March 1941 and took over the Management in1942.

Today, HAL has 19 Production Units and 9 Research and Design Centres in 7 locations inIndia. The Company has an impressive product track record - 12 types of aircraftmanufactured with in-house R & D and 14 types produced under license. HAL hasmanufactured over 3550 aircraft, 3600 engines and overhauled over 8150 aircraft and 27300engines.

HAL has been successful in numerous R & D programs developed for both Defence and CivilAviation sectors. HAL has made substantial progress in its current projects:

Dhruv, which is Advanced Light Helicopter (ALH)

Tejas - Light Combat Aircraft (LCA)

Intermediate Jet Trainer (IJT)

Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002,in the very first year of its production, a unique achievement.

HAL has played a significant role for India's space programs by participating in themanufacture of structures for Satellite Launch Vehicles like:

PSLV (Polar Satellite Launch Vehicle)

GSLV (Geo-synchronous Satellite Launch Vehicle)

IRS (Indian Remote Satellite)

INSAT (Indian National Satellite)

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HAL has formed the following Joint Ventures (JVs):

BAeHAL Software Limited

Indo-Russian Aviation Limited (IRAL)

Snecma HAL Aerospace Pvt Ltd

SAMTEL HAL Display System Limited

HALBIT Avionics Pvt Ltd

HAL-Edgewood Technologies Pvt Ltd

INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas Turbineand Airport Services. Several Co-production and Joint Ventures with internationalparticipation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and BorderSecurity Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as wellas State Governments of India. The Company has also achieved a foothold in export in morethan 30 countries, having demonstrated its quality and price competitiveness.

HAL has won several International & National Awards for achievements in R&D, Technology,Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment of SocialResponsibilities:

HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD” for CorporateAchievement in Quality and Efficiency at the International Summit (Global RatingLeaders 2003), London, UK by M/s Global Rating, UK in conjunction with theInternational Information and Marketing Centre (IIMC).

HAL was presented the International - “ARCH OF EUROPE” Award in Gold Categoryin recognition for its commitment to Quality, Leadership, Technology andInnovation.

At the National level, HAL won the "GOLD TROPHY" for excellence in Public SectorManagement, instituted by the Standing Conference of Public Enterprises (SCOPE).

The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7,783.61Crores

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Sine the entry to HAL has been restricted but the HAL has made Aerospace museum. Locatedon a quiet patch of Airport Road(one of THE MOST busiest roads of Bangalore), this museumis studded with static exhibits of significant planes of the Indian Air Force placed outdoorsamidst a beautiful and well-kept landscape.

HAL Heritage Center and Aerospace Museum, situated on the Airport Road at Bangalore, isthe second largest public aviation museum in the country with ten aircraft and two mockups.

Established in 2001, it displays aircraft models, photographs, fighter planes, and helicopters.Most of the aircrafts are displayed outside the museum except HUL-26 Pushpak and the HALBasant. The photo gallery of the museum contains pictures of Vengeance bombers underconstruction in the 40s, Dakotas being overhauled, Tempests, Devons, under overhaul in the50s, Vampires, Gnats, and Maruts under construction in the 60s. An air control building isalso available in the museum.

Models of GSLV and PSLV Satellite launch vehicles are also exhibited. The Museum alsohouses a small souvenir shop that sells mementos, postcards and posters. There are alsoaircraft simulators, air traffic control towers and an aero-modeling club.

The place is well-equipped with a cafeteria, an Aero-modeling club for aviation enthusiasts, asmall library and a souvenir shop and a place to sit/relax and eat in peace.

A view of the HAL airport runway from the Heritage Centre ATC, an audio-visual at thelounge and the flight simulator which gives a feel of sitting in a cockpit.

It is similar museum in Tuscon, USA - except that there were about 200 more planes thanwhat was on display here. However, one will be impressed by the standard maintained here.There is always guide to help you to understand the complete history of aviation in India andof course to the world

The first one of its kind in the country, the HAL heritage centre and aerospace museum isdefinitely worth a visit

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Some specific question which could be asked from Conducting Official of HALMuseum

1. What is the role played by HAL in creating Museum?

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2. What is the contribution of HAL in the development of Aviation and AviationInfrastructure in India?

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3. What has been HAL contribution in developing Civil Aviation Sector in India?

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4. Has HAL also contributing to development of Air Defence Capability of India?

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5. What are the other development works being done by HAL?

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6. What is the role of HAL in developing sophisticated Avionic systems for various Aircrafts(both Civil & Defence)?

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7. With the shifting of Civil Aviation to New Airport, what is the Utilization of the OldAirport which has cost the exchequer a huge amount?

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8. How does HAL airport can help in the operation of General Aviation?

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9. Is there any plan to use HAL airport for LCC?

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10. How does HAL help Aviation students in learning more and providing InternshipOpportunity?

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Students to frame Five questions on their own and also write their answersbased on observations and clarifications sought.

Question No 1.

Answer:

Question No 2.

Answer:

Question No 3.

Answer:

Question No 3.

Answer:

Question No 5.

Answer:

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Observation SheetKindly observe and fill the various columns

1. History of Aviation

(i) up to 1500 AD

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(ii) 1501 AD to 1900 AD

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(iii) 1901 AD to 1920 AD

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(iv) 1921 AD to 1940 AD

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(v) 1941 AD to 1960 AD

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(vi) 1961 AD to 1980 AD

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(vii) 1981 AD to 2000 AD

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(viii) 2001 onwards

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2. Lakshya Aircraft (Launching; Range and Capability)

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3. PSLV Model (Type of fuel used; Capacity to carry load; Height it could achieve)

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4. ATC (Height of the Tower; Navigational Aids; Communication Aids, etc)

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5. Display of various Aircraft Models in the Museum (Type of various Aircraft, Type of

Power Plants used and the Capability of carrying passengers or ammunition)

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Write down the summary of the experience gained of the Day 3 (not

more than 100 words)

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In case it is found by any person kindly return it to:DeanCollege of Management & Economic StudiesUniversity of Petroleum and Energy Studies“Energy Acres”, P.O. Bidholi, Via Prem Nagar, Dehradun 247 007