Strategy for gross national happiness (sgnh) Annexures to the Main Document

Bhutan ratified the Convention on International Civil Aviation (Chicago Convention) and became a member of the International Civil Aviation Organisation (ICAO) in 1989. As a member of ICAO, Bhutan must accept and achieve compliance to the International Standards and Recommended Practices (SARPs) for aviation safety and security, developed by ICAO.

The Civil Aviation Act 2000, Bhutan Air Navigation Regulations 1999, and other requirements provide the legal and regulatory framework for safety and security of air transport operations. The Act and the regulations in the present form do not cover many areas of air transport critical for ensuring safe and secure operation of flights. Examples of missing regulations include those for air traffic services, aviation security, aviation meteorology, aeronautical information services, etc. Those regulations that already exist do not sufficiently reflect the international standards and require further review and amendment. For flight operations and maintenance, the European Joint Aviation Requirements (JAR) has been adopted as regulations in 1999. However, the JAR requirements in the original form, without adapting them to our local operating environment, have in many ways given rise to implementation problems.
A Capacity Development Project (CDP), jointly funded by the Swedish International Development Agency (SIDA) and RGoB is currently in progress. Under the CDP project framework, one major programme is dedicated to legal and institutional (L & I) development. Under this programme the existing Civil Aviation Act and regulations will be reviewed and amended to establish comprehensive and forward-looking legal and regulatory instruments for civil aviation that covers all the 18 technical standards issued by ICAO.

Bhutan must actively take part in the ongoing regulatory harmonization efforts, and propose the establishment of a regional regulatory agency. The air transport industry is critical for a developing economy like Bhutan to gain from participation in the global economy. Aviation cooperation is essential for successful economic cooperation. The ultimate objective of liberalizing air transport in South Asia should be the establishment of a South Asian Common Aviation Market. Given the many barriers to liberalization, a gradual, two-pronged (bilateral and multilateral) step-by-step approach to liberalization should be pursued.

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  Remove frequency and capacity limits on 3^rd and 4^th freedom;
  
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  Add more 5^th freedom points and capacity;
  
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  Allow multiple designations of airlines;
  
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  Open charter markets;
  
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  Open freight markets, etc
  

Fresh bilateral ASAs should be concluded with countries in the Middle East, HK SAR, Singapore, Malaysia, China, and other South Asian countries. However, bilateral air services negotiations are often constrained by direct political interventions, and historically have resulted in less than optimal outcome for the two parties.

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   Strengthen the legal and regulatory framework for aviation safety and security.
   

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  Civil Aviation Act revised to enable the establishment of an autonomous Civil Aviation Authority.
  
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  A comprehensive set of aviation safety and security regulations developed compliant with the ICAO technical standards.
  

2. 
   With the overall objective of improving aviation safety and security standards, enabling growth of air transport business, and reducing cost of aviation services, proactively pursue the move towards harmonization/standardization of aviation regulations in the South Asia region.
   
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     Actively engage in the ongoing projects on regulatory harmonization.
     
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     Propose the establishment of a permanent institutional framework (e.g. South Asian Aviation Safety Agency) for common aviation rulemaking, certification, standardization, and enforcement.
     

3. 
   Pursue progressive and incremental liberalization of air services within the bilateral framework.
   

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  Negotiate and conclude more liberal and progressive bilateral agreements with Nepal, Bangladesh, India, and other South Asian countries focussing on 5^th freedom traffic rights.
  
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  Conclude fresh bilateral air service agreements with China, ASEAN, and Middle East countries.
  

4. 
   Guided by the common goal to achieve strong economic cooperation through free and open trade and investment among the SAARC member states, proactively support air transport liberalization in the South Asia region within the framework of SAARC / SAFTA.
   

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  Leveraging on the Indian Prime Minister’s statement at the 13^th SAARC Summit, Dhaka in 2005, propose the adoption of a progressive, phase-wise liberalization of air transportation in the South Asia region.
  
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  SAARC leaders to chart out a clear vision (establishment of a South Asia Common Aviation Market by 2020) for air transportation.
  
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  Include air transport objectives within the framework of SAFTA.
  
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  Institute a regional consultative mechanism (Biennial SAARC Air Transport Ministers’ Meeting).
  
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  Formulate SAARC guiding principles for air transportation and develop a roadmap.
  
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  Establish a permanent institutional framework for aviation rulemaking, certification, standardization, and enforcement.
  

Following are the proposed strategies for development of Paro International Airport to enhance safety and to accommodate the projected rise in passengers for the next twenty years.

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  Expansion of the terminal building and its facilities
  
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  Expansion of the apron and the taxiway to accommodate more aircraft
  
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  Construction of private aircraft parking
  
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  Construction of domestic terminal, apron and taxiway for fixed and rotor wing aircraft
  
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  Expansion of the width of the runway
  
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  Construction of turn pads at the ends of the runway
  
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  River protection works with embankment and motor road on top that would reclaim land and divert the current road.
  
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  Construction of a cross runway to enhance safety
  
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  Accommodation for security and fire staff.
  
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  Construction of fire station.
  
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  Consolidation of airport security under one agency.
  
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  Upgradation & expansion of Closed Circuit TV (CCTV) system coverage.
  
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  Installation of airport perimeter lighting
  
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  Upgradation of airport security system
  
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  Procurement of runway sweeping machine
  
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  Establishment of Automatic Weather Observation System (AWOS).
  
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  Aeronautical Information Service (AIS) Automation System
  
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  Feasibility study for adoption of satellite-based navigation and surveillance systems: Study for adoption of Automatic Dependent Surveillance-Broadcast (ADS-B) with VHF Data Link (VDL)-mode4 and Ground Based Augmentation System (GBAS).
  
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  Upgradation of Aeronautical Fixed Telecommunication Network (AFTN) to Aeronautical Telecommunication Network (ATN).
  
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  Improvement of communication & navigation aid technology
  
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    Upgrade mini radio link (UHF to Microwave) between Paro airport and Jabjeykha (JJ) peak (Location of VOR).
    
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    Upgrade air-ground VHF R/T equipment and establish ATS Reporting office. DVOR/DME & High Capacity Uninterruptible Power Supply (UPS) system upgrade.
    

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  Relocation of the Air Force Element for better utilization of the area
  

The following table will provide the current situation of Paro International Airport and the capacity that the airport will be able to handle in the next twenty years after expansion works.

To enhance safety at Paro International Airport, feasibility study for construction of an additional cross runway from North-East to South-West will be carried out. Expertise will be brought in to study the feasibility and relative increase of safety by constructing an additional runway. Other considerations that will be looked into will be the cost for purchasing private land and houses that fall on the construction path once the orientation of the proposed runway is finalized.

Taking into consideration the constraints faced at Paro Airport both in terms of aircraft operations and future aviation growth, the proposed international airport at Gelephu is expected to provide the following facilities:

In view of Paro Airport’s Visual Flight Rules (VFR) limitation on flight operations, the airport at Gelephu should compensate for the existing limitation through the use of Instrument Flight Rules (IFR) capability and flight procedures, approach aids, etc. This could be achieved through use of Instrument Landing System (ILS). This will inevitably have a positive impact on future air traffic growth, thereby contributing to the socio-economic development of the country.

It is expected that Gelephu international airport would allow operation of wide-bodied aircraft on international routes capable of carrying more passengers and freight.

Gelephu being in the foothills of Bhutan adjoining the plains of the state of Assam, India, has more plain area than anywhere else in Bhutan, will be sufficient to have a runway length to accommodate most of the wide-bodied carriers. The problems associated with atmospheric pressure/air density and temperature normally encountered at Paro airport causing load penalty will also be reduced immensely.

Development of airport infrastructure such as airport terminal building with the capacity to handle multiple flights at a time, aprons to handle maximum aircraft parking stands and maneuvering areas, hangars to adequately accommodate many aircraft, aero-bridges to accommodate enough wide-bodied aircraft at a time, modern and fully equipped Air Traffic Control Tower (as per ICAO norms) to handle the air traffic and reliable communications and navigational systems. Efficient and fully equipped airport fire and rescue section to react promptly in the event of an accident or incident and efficient and well trained airport security, etc. will enable efficient handling of higher volume of traffic and cargo.

The preliminary field studies and survey to locate a suitable site for developing an international airport in Gelephu was carried out by a team of experts from the Airports Authority of India (AAI), GoI, in May 2006. Naya Basti under Bhur Gewog was considered the most probable site by the team. However, their final report on the preliminary survey is still awaited.

During the 1^st phase (2007-2009), the meteorological data of the area will have to be collected and recorded for the period so that the actual pattern of the wind flow of the site and the meteorological phenomenon of the area is understood and confirmed. The actual orientation of the runway at the selected site is decided after understanding the wind pattern.

In the 2^nd phase the acquisition of the total land area needed for the construction of the Gelephu International Airport (airstrip and the infrastructure) will commence. The total land area needed as indicated by the AAI’s experts in their preliminary survey report is as follows:

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   For airstrip: 4000m x 600m
   
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   For Terminal complex: 1500m x 1000m (northern side of runway)
   
3. 
   Total land area required for the construction of the Gelephu Airport is estimated at 1,600 Acres (4000m x 1600m).
   

After the completion of the feasibility studies and acquisition of land, the actual work for the construction of an international airport will commence. The work in the 3^rd phase should commence with the construction of a runway and other infrastructure to follow simultaneously. Completing the runway as the first project will also facilitate the airline in using it as an airport for any diversion as well as testing the operation till such time the supporting infrastructure are completed. Unlike Paro, Gelephu will have a longer runway with ILS and will have an all-time operational capability (day & night, low visibility, etc.).

In the absence of any other airline operating in the country, Bhutan’s designated carrier Druk Air has been the sole operator since 1983. While Druk Air has served its purpose in linking Bhutan to the outside world, the efficiency in delivering service has often been subjected to criticism when compared to global standards. What must be understood is that while services can be upgraded these come at a cost and hence as a business that cannot sufficiently project profits, additional expenses need to be scrutinized more deeply. As such, in a monopolistic environment, expenses to enhance the image, service and product are sometimes given lower priority.

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  Distribution Network.
  
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  IATA & MITA.
  
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  Alliances & Code Shares.
  

For airlines all over the world, the cost of distributing its network is perhaps one of the most critical aspects of its business. However, the technology has severe cost implications but undeniably no airline can afford not to participate in this technology. For Druk Air while this has been resisted, it has now become imperative that participation in a global system must be recognized for the airline to be prepared for competition in the future as well as exposing its network worldwide.

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  Evaluate one of the Global Distribution Systems (GDS) – Amadeus, Sabre, Worldspan, Galileo, Abacus and the current CRS Gabriel. Costs for these will have to be negotiated.
  

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  Introduce internet linked reservation for direct client access. However, the success of this will also be dependent on the banking policy of acceptance of credit card and secure protection. E-ticket by all airlines is required to be implemented by the end of 2007 for IATA members.
  

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  Currently, in Bhutan, only Druk Air offices issue Druk Air tickets. No agencies have been given the ticket stock. As the only airline this is not necessary as the distribution of the service can be conveniently provided directly. Hence for the time being it is not recommended to de-regulate the distribution, but this may be reviewed in the future in a competitive scenario.
  

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  Introduction of Online Reservation. The airline is in discussion with some providers of this web-based application. In order to make this effective Credit Card Acceptance will need to be sorted out by the banks. The airline however, is analyzing this aspect through its service provider to secure the payments which could be hosted through external banks.