Need for Airport in Navi Mumbai

Description
We have Made the PPT on basis of Quantitative Techniques subject (MBA)

NEED FOR INTERNATIONAL AIRPORT IN NAVI MUMBAI
Name
Sumedh Gaikwad Sonali Gothankar Tejas Mahorey Gagan Lamba Santosh Veer Ganesh Sawant Krishna Prasad Subhas Das

Roll no
63 62 65 17 54 19 30 81

Introduction
? The Mumbai Metropolitan Region (MMR) is spread over an area of 4355 Sq. Km. and comprises mainly of Greater Mumbai, Thane, Kalyan, Vasai-Virar and Navi Mumbai. ? Enhancements in aviation facilities in Mumbai is absolutely essential for keeping the leadership of Maharashtra in attracting Foreign Direct Investment. ? The existing airport at Mumbai, is fast reaching saturation level. To meet the growing demand of air travel of city population

Problem Definition
STATEMENT
³The objective of our research and our problem statement is to determine the need of an airport in Navi Mumbai.´ Chhatrapati Shivaji International Airport, formerly Sahar International Airport, is the primary international airport in Mumbai, India, The airport is South Asia's second busiest airport in terms of passenger traffic, and the busiest airport in India in terms of international passenger traffic and the second busiest in terms of overall passenger traffic.

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Secondary data
Navi Mumbai Profile
? Navi Mumbai is a Planned Satellite City on the west coast of the Indian state of Maharashtra. ? Navi Mumbai Municipal Corporation, the public body that manages the city's affairs, is rated amongst the richest corporations in Asia. ? Growth in resident population in Navi Mumbai, rapid development of its Central Business District, coupled with economic activities such as Special Economic Zone, Jawaharlal Nehru Port Trust, Thane-Belapur and Taloja industrial areas and the huge catchment area ranging from Pune to South Mumbai
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Whether there is Need for NMIA?
? Mumbai¶s contribution is about 40% of total NDP of Maharashtra. ? The share of tertiary sector employment is expected to increase from 64% to 72%. ? Modernized way of functioning ? There is a need of increasing the capacity of airport as the existing Sahar airport (domestic) and CSIA (international) are not sufficient. ? Mumbai the highest air passenger ? Mumbai airport at Santacruz is the busiest airport in the country and handles approx. 23% of total passengers, 31% of Cargo traffic and 18% of aircraft movement in the country. ? To meet the growing needs of business and population there is a need to develop a new airport in a less congested place that can have many additional and improved facilities as compared to CSIA.

Problem faced in CSIA
Mumbai airport at Santacruz is the busiest airport in the country and handles approx. 23% of total passengers, 31% of Cargo traffic and 18% of aircraft movement in the country. ? ? ? ? ? ? Improper surrounding. Non availability of more check-in counters. Improper maintenance of toilets. Inadequate food and beverage outlets. Heavy traffic flow. Slums encroaching onto the airport area.
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Analysis of alternative sites
? The following sites were considered and analysed : ± Kalyan ± Nevali ± Rewas - Mandwa at Alibaug

? Kalyan ± Nevali
There exists an old and abandoned air-strip of World War II era and the Union Defence Ministry owns the 1,500 acres (6.1 km2) of land on which it is located. The proposal was centered around those 1,500 acres (6.1 km2) of land.

? Rewas-Mandwa:
1. 2. 3. 4. 5. 6. Site is about 120 kms away from Mumbai airport. This will result a travel time of around 3hrs which exceeds the international norms or travel time to airport i.e. 1.5hrs. The site is abutting Dharamatar creek. 2 parallel runways are planned. The availability of various infrastructure reqd. for the development of airport are absent at the site. A trans-harbour link from Sewri-Nhava is proposed to be constructed on Dharamatar creek that puts the entire project cost on the higher side.

Centrally Located NMIA

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ENVIRONMENTAL ISSUES
? Around 98 hectares of mangrove will be lost forever in the area where the runways are being built. ? A portion of Gadhi river and Ulwe river flowing through the airport site need to be trained and diverted along the boundary of airport zone to make available the land for development of airport. ? Rehabilitation of seven villages with the population of about 15000. ? The 90-meter high hill will need to be removed to enable smooth access to the runaways. ? 4 Extra High Tension Lines existing in the Airport Operational Area and in the surroundings which are required to be re-routed to suitable place outside the horizontal surface of Airport area.

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Description Of Environment

MEASURES TAKEN BY GOVT.
? Non-essential airport facilities are being shifted and as a result 245 hectares of good quality Mangrove Park is being developed by CIDCO. ? The distance between the runways is being reduced from 1800 meters to 1555 meters. Because of this, the Gadhi River will not need to be diverted. ? A new 60 hectare mangrove park will be developed towards the Moha and Panvel Creek area by CIDCO. ? Another 310 hectare area on the northeast of the airport site between the Gadhi River, Mankhurd-Panvel Rail Corridor and NH- 4B will be declared as a ³no development´ zone and CIDCO will undertake the development as mangrove park/green area after changing the sanctioned development plan of Navi Mumbai following due procedures.
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SWOT ANALYSIS
STRENGHTS 1. 2. 3. 4. 5. Land available with CIDCO Availability of all modes of transport Supporting infrastructure Less capital cost as compared to other sites Public and private investments

WEAKNESS 1. 2. 3. 4. Acquisition of land Destruction of mangroves Diversion of Ulwe and Gadhi river Rehabitation of population

OPPORTUNITY 1. 2. 3. 4. Development of Navi Mumbai Healthy competition among two airports Meeting demand of increasing population Industrialization

THREATS THERE ARE NO THREATS AS OF NOW.

AIR TRAVEL FORECAST
Bivariate correlation analysis of number of passengers and GDP (Purchasing power parity) for the past 6 years for CSI Airport.
Determination of Karl Pearson¶s coefficient of correlation:
x GDP(USD) PPP 2200 2540 2865 3067 3255 3461 x =17388 Y (no. of passengers, crores) 0.87 1.07 1.31 1.83 2.37 2.75 y = 10.2

Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Summation ( ) 2/28/2012

x2 4840000 6451600 8208225 9406489 10595025 11978521 x2 = 51479860

y2 0.7569 1.1449 1.7161 3.3489 5.6169 7.5625 y2 = 20.1462

xy 1914 2717.8 3753.15 5612.61 7714.35 9517.75 xy = 31229.66 15

Step 1

Calculation
x

Step 2

Cov(x,y) = ? xy x¶ y¶ n x¶ = ? x = 17,388 = 2,898 n 6 y¶ = ? y = 10.2 = 1.7 n 6 Cov(x,y) = 31,229.66 6 = 278.3433 2,898 x 1.7

= ¥ ? x2 x¶2 n = ¥ 1,81,572.6667 = 426.1134 = ¥ ? y2 y¶2 n = ¥ 0.4677 = 0.6838 278.3433 426.1134 x 0.6838

y

rxy =Cov(x,y) =
x y

= 0.96
Since rxy is between 0.5 and 1.0, there is a strong positive correlation between increase in number of air passengers and GDP
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Regression Analysis
Since y (number of passengers) is dependent on x (GDP), the value of y can be found for a given value of x using the regression equation. y - y¶ = byx (x ± x¶) byx = Cov (x,y) x2 As calculated above Cov(x,y) = 278.3433 x2 = ? x2 n byx = x¶2 = 1,81,572.6667

278.3433 1,81,572.6667
Continued«
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= 0.001532
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Substituting values in the regression equation we get, When GDP will be about 5398 in the year 2015. y ± 1.7 = 0.001532(5398 ± 2898) y ± 1.7 = 0.001532 x 2498 y ± 1.7 = 3.8269 y = 3.8269 + 1.7 y = 5.5269 Conclusion : Therefore, in the year 2015 the number of passengers travelling by air will increase to about 5.53 crores which will saturate Mumbai airport completely. Hence need for a development of a new airport is very necessary

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PRIMARY DATA

SAMPLING
? SAMPLE DESIGN :- Non-Probability ? Sampling where the sample or respondents are selected by the researcher and by his own choice. ? JUDGEMENTAL SAMPLING we can have the expert opinions of the selected Class who often travel through Airways. ? SAMPLE SIZE :- 50 Respondents ? Sub-divided as 15 from Hotel in Central Mumbai, Navi Mumbai & Pune, 15 from major Corporates locating at every Area. 10 from Online Partners & Travel Agents for Booking Tickets & 10 from Major Residential Complexes.
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SAMPLING PROCEDURE
? Different Offices of Every Area were Visited during Peak Hours & we targeted the Higher Management. ? Different Corporate Hotels were visited where they have pickup & drop facility available from the Airport. ? Different High Class Residential colonies were targeted during weekend at their Building lobby.

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Q.1. How often do you travel by airways?
20 20 18 16 14 12 10 8 6 4 2 0

DATA CLASSIFICATION
REPRESENTATION OF DATA BY BAR DIAGRAM
13 12

5

Very Often

Often

Sometime

Rarely

Analysis: According to the survey, we analyzed there are large number of people travelling through airways and most of the people travel once in fortnight. With this we can forecast there is huge amount of prospective demand for airlines. Data Interpretation through Quantitative Techniques: According to the survey, we can see the highest no of frequencies repeated is for option "B" i.e. often (once in fortnight) No of Frequency for option B is highest i.e. 20. Hence Mode for the above analysis is Often ( once in fortnight )
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Q.2.

Rank the problems you face while using CSI airport?
25 20 15 10
11 25

REPRESENTATION OF DATA BY BAR DIAGRAM

5 0 Traffic Flight Schedule

6

8

Frequency of International Flights

Others

Analysis: According to the survey, we analyzed that majority of people found Traffic as the main problem while using CSIA. Data Interpretation through Quantitative Techniques: According to the Data we can analyze out of total number of respondents i.e. 50 every 2nd person is facing the same problem of traffic We can also analyze that Mode is 25 So traffic is main problem as its frequency is higher i.e. 25.
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Q.3.Rate the probable solutions to the above mentioned problems.
REPRESENTATION BY PIE DIAGRAM
5 8 16

Improving Infrastructure Less Congested region Frequency of Flight
21

Others

Analysis: We analyzed that the most probable solution is Building a New Airport in a Less Congested region. Data Interpretation through Quantitative Techniques: With the help of the Diagram we can Analyze maximum percentage of Share is for Less Congestion Area i.e. 42 % This help us to analyze that irrespective of the Location, respondents want to get out of traffic which was one of the Major Constraints So as per the Diagram, highest Number of Frequencies is for Less Congestion Area i.e. 21. So, we can Consider that as Mode
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Q.4.Considering the problem, what would be your preferred location for new airport?
40 35 30 25 20 15 10 5 0 Navi Mumbai Pune Rewas-Mandwa 4 2 Others 9

REPRESENTATION THROUGH FREQUENCY POLYGON
35

Analysis: As per the analysis, it is found that Navi Mumbai is the most preferred location for a new airport Data Interpretation through Quantitative Techniques: As the Name Suggest it speaks about the Frequency, where in highest frequency for a particular Site is considered Mode for the Above Data is Navi Mumbai where in People were very positive about building Airport in Navi Mumbai.
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Q.6.Keeping certain factor in mind and taking Sahar airport as the base, which location would you prefer for an airport to develop?
Factor Connectivity Centralized location Cost effective Demand Time effective Navi Mumbai (Panvel) Yes Yes Yes Yes Yes Rewas-Mandwa No No Yes No No

?

? ? ?

?

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Data Analysis & Interpretation:Connectivity :- While Discussing Personally with the Respondents we found out that Connectivity for Navi Mumbai is far more Superior to Rewas Mandwa As people over here have a good option of Roadways ± clean and clear Roads, Railways now Developing Metro rails & close to Biggest Port in Town ± JNPT. Which reduces cargo traffic too. Centrally Located: - As Most of the people find it Easy to travel as from Mumbai as well as pune. Cost Effective: - Both are considered to be a cheap solution as per the survey, as people think the Land is cheaper and easily available. Demand: - Demand for 2nd Airport is there in Mumbai as per the Survey, so for People will go anywhere if there are better facilities available. But, Demand for Navi Mumbai will be little Superior if we compare with Mandwa. Time Effective: - As people find Good Connective and good Transport facility available so it is considered to be Time Effective Solution.

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Analysis as per Survey
? As per the survey conducted by us, we came to a conclusion that people prefer to have a new airport to be build up in Navi Mumbai and the reasons for this are: It will be a centralized location Easy to reach Eco-friendly Better infrastructure facility It will result in construction of metro rail, mono rail lines, rail over bridges Project will facilitate the fast movement of man and materials, thereby fostering trade and commerce. Pressure on other airport at Santacruz will be eased. Private sector investments Creation of employment facilities 80,000 passengers would travel to or from airport daily, 1,00,000 will travel to airport or vicinity for job purpose Hospitality industry and the tourism sector will boom Relocation of corporate offices
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? ? ? ? ? ? ? ? ? ? ? ?

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RECOMMENDATIONS AND ACHIEVEMENT OF HYPOTHESIS
1. We designed our research to find out the Need of Navi Mumbai Airport and as per the research it is very important. People are looking forward for the alternative option near Mumbai. 2. We found out the Current Environment issues that were arising which will also play a vital role. 3. People were also looking forward for better transport facility and Navi Mumbai turned out to be a perfect Solution to them as it has better Connectivity. 4. It can be a Cost Effective Solution for passengers. 5. People also laid down the Needs & requirements for facilities required and we analyzed that Greenfield was working in the right direction of achieving those facilities. 6. It also helped us to analyze the Demand which will be expected till the Airport becomes operational (i.e. approx 2015). 7. With the help of research conducted we analyzed that Navi Mumbai can Develop to a great extent and will be Commercial Hub of Mumbai. 8. It also will increase FDI in Indian Market which will result in High Growth Rate. So, these were the hypothesis which were achieved by this research.

Conclusion
 This research will be used to know the problems faced in CSI Airport. So, research was conducted to know the exact problem faced by them & all the alternatives solutions and Feasibility of Place (i.e. Navi Mumbai). Other than finding out the Need it also helped us to know what Customer were expecting from the Airport which was very helpful for implementation of new Airport in Near Future. This research will also be useful to Forecast the Demand of both the Airports (i.e. CSIA & NMIA). Where in with the help of Quantitative Analysis we were able to find out the probable demand in 2015. Also most important it helped us to know the views about Navi Mumbai Airport & how successful it would turn out to be« So, this research will be useful in many ways and has a very wide scope.

 

 

Reference
? ? ? ? ? ? ? Google Wikipedia Maharashtra pollution control board CIDCO CESE, IIT Bombay. Airport Authority of India (AAI). NMTV



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