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Detailed Project Report

PROJECT REPORT

GOVERNMENT OF KARNATAKA INITIATIVE

DEVELOPMENT OF HELITOURISM IN KARNATAKA

TOURISM PROJECTS FOR INVESTMENT

OPPORTUNITIES

INVEST KARNATAKA 2016

January 2016

Development of Helitourism in Karnataka


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Table of contents

1. Introduction ............................................................................................. 5

1.1 Background ............................................................................................................................. 5

1.2 Helitourism in Karnataka ........................................................................................................ 6

1.3 Helitourism Operators in Karnataka ....................................................................................... 6

1.3.1 Pawan Hans Helicopters Limited (PHHL) ............................................................................ 6

1.3.2 Deccan Charters .................................................................................................................. 8

2. Peer Study ............................................................................................. 10

1.4 Peer Analysis ......................................................................................................................... 10

2.1.1 Arunachal Pradesh ............................................................................................................ 10

2.1.2 Sikkim ................................................................................................................................ 12

2.1.3 Andaman & Nicobar Islands .............................................................................................. 12

2.1.4 Jammu & Kashmir ............................................................................................................. 13

2.1.5 Uttarakhand ...................................................................................................................... 14

2.1.6 Himachal Pradesh ............................................................................................................. 15

2.1.7 Andhra Pradesh ................................................................................................................. 16

2.1.8 Kerala ................................................................................................................................ 17

2.2 Comparative Analysis ............................................................................................................ 18

3. Independent Assessment ....................................................................... 22

3.1 Karnataka: A Tourist Paradise ............................................................................................... 22

3.2 Tourism Industry in Karnataka .............................................................................................. 23

3.3 Demand Assessment for Helitourism ................................................................................... 24

3.4 Need for the Project.............................................................................................................. 27

3.5 Helitourism Circuits ............................................................................................................... 27

3.5.1 Coastal Circuit ................................................................................................................... 28

3.5.2 Heritage Circuit ................................................................................................................. 29

3.5.3 Malnad Circuit ................................................................................................................... 30

3.5.4 Other circuits and destinations ......................................................................................... 32

4. Investment Details ................................................................................. 38

4.1 Infrastructure Investments ................................................................................................... 38

4.1.1 Helipads ............................................................................................................................. 38



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4.1.2 Helicopters ........................................................................................................................ 39

4.1.3 Off-board activities ........................................................................................................... 40

4.2 Revenue Model ..................................................................................................................... 41

5. Project Structuring Options .................................................................... 44

5.1 The Project ............................................................................................................................ 44

5.2 Project Structure Options ..................................................................................................... 44

Annexure I ................................................................................................... 54

Annexure 2 .................................................................................................. 58



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List of Tables

Table 1: List of Services offered by PHHL ................................................................. 7

Table 2: Status of Helitourism Packages Offered by Deccan Aviation ....................... 8

Table 3: Other Helitourism Destinations catered to by Deccan Aviation ................... 9

Table 5: Age profile of tourist visits to Karnataka for the year 2005-2006 ................. 25

Table 5: Overnight tourists and their Annual House-hold Incomes ............................... 26

Table 6: Overnight tourists and their Annual House-hold Incomes ............................... 27

Table 7: Helitourism Circuits ....................................................................................................... 28

Table 8: Proposed Investments for development of Helipads ........................................... 39

Table 9: Sources of cash outflows for helitourism operators ............................................ 41

Table 10: Cash outflow for helitourism operators ................................................................ 42

Table 11: Sources of cash inflow for helitourism operators .............................................. 42

Table 12: Project Structure Options in brief ........................................................................... 46

Table 13: Option 1 details for helitourism .............................................................................. 48







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1. Introduction

1.1 Background

Department of Tourism (DoT) Government of Karnataka (GoK) is determined to boost

the tourism industry in the state. The Tourism Sector has been identified as one of the

key sectors propelling the country’s economic growth. Karnataka State has been

ranked as the 3rd preferred destination among domestic tourists in the tourism sector.

Karnataka’s thriving economy has created many opportunities across the State in the

last decade.

For GoK, the tourism sector constitutes a real priority because it is an important sector

for the generation of employment, therefore various initiatives are been undertaken

with the involvement of all stakeholders, both public and private, that will foster a

more favourable environment for the development and consolidation of the tourism

sector. One of the initiatives in this direction is the formulation of Karnataka Tourism

Policy for 2015-20.

GoK intends to encourage the investors to invest in the tourism sector. A host of

incentives and concessions are provided to the investors in tourism sector, in the New

Tourism Policy for 2015-20. A large emphasize has been laid on enhancing hospitality

services and standards, promoting innovative developments and rejuvenation of older

tourist attractions, with the aim of offering visitors the experience that will

commensurate with higher expectations.

With this background, DoT has prepared a shelf of Detailed Project Reports (DPRs) of

potential tourism projects which could be undertaken for development along with

collaboration with the Private sector. One of the projects identified for development is

development of Helitourism in Karnataka.

GoK is already involved in the development of six minor airports within the State at

various locations which are at different stages of development. In addition to the

minor airports that are being developed, GoK is also proposing the development of

helipads across the State thereby providing for the basic infrastructure to develop

heli-tourism in the State. In this regard, the DoT had undertaken a feasibility study for

development of helipads across the State. The study indicates that the demand

assessment of heli-tourism in the State has been promising and that there exist a

latent demand for the same which would increase over a period of time.



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1.2 Helitourism in Karnataka

One State, Many Worlds, the

caption of Karnataka Tourism,

GoK says all about the diverse

offerings that the State has in

the domain of tourism in the

Country. The development of

helitourism in the State would

only boost tourism by giving it a

new dimension, to offer a journey as exciting if not more, than the destination itself.

In this regard, the DoT is in the process of providing for the minimum requisite

infrastructure for helitourism and helipads being the most significant of them all. The

DoT has identified 20 such locations for development of helipads. The criteria for

suggesting development of helipads was based on the tourist arrivals to these places

and also the absence of a helipad in every district. Annexure-1 to this report would

provide with the list of helipads proposed to be developed.

1.3 Helitourism Operators in Karnataka

There are very few helitourism operators in the country and only a couple of them

have a comparatively large scale and scope of operation. It is to be noted that there is

no single heliservices operator in the country which is solely dedicated to helitourism

in the country. The notable heliservices operators in the country are the Indian Air

Force, Pawan Hans Helicopters Limited, Deccan Aviation, Air Charter Services, A K

Aviation, Skymaster Aviation, Akinson Flights, Himalayan Helicopters, King Rotors,

Punji Lloyd, etc. who have their operations across the country. Pawan Hans being the

leader in heliservices operations is dominant in Northern India followed by Deccan

Charters which is the second largest heliservices operator dominant in Southern India

and is the lead helitourism operator in the State head quartered at Bangalore. A brief

of two of the major heli-services operators are discussed below;

1.3.1 Pawan Hans Helicopters Limited (PHHL)

PHHL is one of India's leading helicopter companies known for its reliable helicopter

operations. It was incorporated in 1985 as the country's national helicopter company

with the objective of providing helicopter support services to the Oil Sector for its



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off-shore exploration operations, services in remote areas as well as charter services

for promotion of tourism.

The fleet of Pawan Hans has successfully flown over 400,000 hours and undertaken

over 1,500,000 landings till date. It also has an approved maintenance centre of

Eurocopter and is the first Aviation Company in India to be awarded ISO 9001: 2000

Certification.

It has a well-balanced fleet of 36 helicopters consisting of Robinson Bell 206L4, Bell

407, Dauphin SA 365N & AS 365N3 and Mi-172s - which are most appropriate for

multiple tasks. In addition to this, it also operates and maintains helicopters of other

customers.

The list of services offered by Pawan Hans is shown in the table below;

Table 1: List of Services offered by PHHL

Sl. No. Services Offered

1 Off Shore Operations

2 Inter-Island Transportation

3 Connecting Inaccessible Areas

4 Pipeline surveillance

5 Casualty and Rescue work

6 Charter Services

7 VIP Transportation

8 Film Shooting and Aerial Photography

9 Flower Dropping

10 Customised services

11 Helitourism

The Corporate Office is located at Delhi with Regional Offices at Delhi and Mumbai. It

has a team of dedicated and highly motivated and skilled manpower which includes

pilots, engineers, executives and support staff. The company has been maintaining

excellent financial results every year.

On the helitourism front, they have limited services to offer wherein they have

deployed 2 Bell helicopters for regular passenger flights to Mata Vaishno Devi

Shrine. During the season (May-June and Sept.-Oct.) the company operates regular

passenger flights to Kedarnath Shrine from Augustmuni and Phata in Uttarakhand.

They also commute passengers to and fro States/Union Territories like Tripura,

Sikkim, Meghalaya, Arunachal Pradesh, Lakshadweep and Andaman and Nicobar



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Islands. The same contributes marginally to its revenue. PHHL has no helitourism

services to offer in Southern India except for customized charter flights to

destinations inter se.

PHHL has undertaken feasibility studies for the locations proposed for helitourism in

the State and is also proposing to undertake the Hampi helitourism circuit in the

State thereby exploring the helitourism market in the State.

1.3.2 Deccan Charters

Deccan Charters is the largest charter aviation company in the private sector that not

only conceptualized the whole category of helicopter flying but also propelled it into

vividly expressive areas of application such as helitourism. It is the sole heliservices

operator in Southern India that offers helitourism. They have been successful in

independently handling helitourism for the State and are enthusiastic of DoT taking

steps in developing and promoting helitourism in the State.

Deccan Charters has three helitourism packages to offer within Karnataka, of which

only two are operational. The helitourism package offered to Hampi and Belur is

presently not operational owing to bottlenecks in the availability of helipads. A list of

all planned helitoursim packages offered by Deccan Aviation is tabulated below.

Table 2: Status of Helitourism Packages Offered by Deccan Aviation

Sl. No. Package Location Status Helipads used

1. Cauvery

Fishing Camp Mysore Operational

The Jungle Lodges &

Resorts (JLR) at Kabini

2. Kabini Mysore Operational The Jungle Lodges &

Resorts (JLR) at Kabini

3. Hampi Belur Bellary

Not

operational

owing to

non-

availability of

suitable

helipads

University helipad at

Hampi is under

discussion but the

authority is not willing

to offer services

regularly to Deccan

Aviation

Apart from the above three helitourism packages; Deccan Charters also conducts

customised helitours to the locations mentioned in the table below;



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Table 3: Other Helitourism Destinations catered to by Deccan Aviation

Sl No. Destination Location

1. Mysore Sight seeing Mysore

2. Puttaparthi Andhra Pradesh

3. Tirupathi Andhra Pradesh

4. Coimbatore Andhra Pradesh

5. Ooty Tamil Nadu

6. Chennai Tamil Nadu

7.

Katra to Vaishnodevi &

other places in and around

Srinagar

Amarnath, J&K

8. Mumbai Goa

Deccan Charters makes use of the helipads developed by Karnataka Public Works

Department (KPWD) wherever available. For Mysore sightseeing, it makes use of the

helipad near Lalilth Mahal Palace, which is owned by KPWD.

Helitourism contributes to nearly 15% of the total revenues at Deccan Charters and

this component is growing year on year. Of all the tourists who avail of the

helitourism facilities, 40% of the tourists are international tourists and the balance

60% are domestic tourists. Deccan Charters has a fleet of total 11 helicopters

stationed across the country that cater to all the different services they have on

offer.

Many of the tourists who have approached Deccan Charters for helitourism have

enquired for helitourism to places like; the Jog falls, Talacauveri, Shravanbelagola

and Dandeli. Deccan Charters acknowledges that there is tremendous demand for

helitourism in Karnataka and the initiative to develop 20 helipads across the State

would boost it up.



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2. Peer Study

This Section includes an account of development of helitourism in other States and

Union Territories in the country, comparing their progress with that in the State of

Karnataka, analyzing the way it is practiced in other States and UT and finally

understands what mode of project structuring would help the development of

helitourism in Karnataka.

1.4 Peer Analysis

Many States/ Union Territories (UT) in the country have initiated actions on

development of heli-tourism and have experienced mixed results. A peer study on

development of heli-tourism in the State would give valuable insights into

development of heli-tourism in Karnataka and also serve as a pedestal for further

course of action in this regard. In this section, we have done extensive study of heli-

tourism in the following States;

1. Arunachal Pradesh

2. Sikkim

3. Andaman & Nicobar Islands

4. Jammu and Kashmir

5. Uttarakhand

6. Himachal Pradesh

7. Andhra Pradesh

8. Kerala

While selecting the other States/UT for peer study, the criteria was each of the State

so chosen for the study would have different offerings for the tourists, located in

different parts of the Indian Union and are at different stages in the development of

heli-tourism in their respective States. Hence, we have chosen two States from

Southern India, three from the north, two from the north east and one UT which is an

island in the Indian Ocean.

2.1.1 Arunachal Pradesh

The State of Arunachal Pradesh lies to the northeast of the Indian Subcontinent and

shares its borders with other countries like Bhutan to the west, China to the north

and north-east and Myanmar to the east. It stretches from snow-capped mountains



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in the north to the plains of Brahmaputra valley in the south. Arunachal is the largest

state area-wise in the north-east region, even larger than Assam which is the most

populous. The State is divided

into five river valleys: the

Kameng, the Subansiri, the

Siang, the Lohit and the Tirap.

All these are fed by snow from

the Himalayas and countless

rivers and rivulets.

High mountains and dense

forests have prevented inter-

communication between tribes

living in different river valleys.

The mightiest of these rivers is

Siang, called the Tsangpa in

Tibet, which becomes the

Brahmaputra after it is joined by the Dibang and the Lohit in the plains of Assam.

Isolation imposed by geography has led over twenty six major tribes with several

dialects to live and flourish with their distinct identities. Nature has provided the

people with a deep sense of beauty which finds delightful expression in their songs,

dances and crafts.

The Ministry of Civil Aviation oversees the heli-service operations in the State and

PHHL through its MI-172 and Dauphin Pawan Hans Helicopters offers heli-services in

the State for its interstate commutation and also tourism purposes. But, the services

are more generic rather then being tourism specific. The following is the schedule of

heli-services offered by the PHHL in the State. The schedule of the heli-services in the

State is as shown in Annexur-2 to the report.

Apart from the heli-services operations within the State, Arunachal has commendable

heli-services between Guwahati (capital city of Assam) and Tawang (a town in

Arunachal) on six days of the week thus serving as a link between the two

northeastern States which otherwise remain isolated during the harsh mood-swings

of nature.

Helicopter Services in the State of Arunachal Pradesh is necessity rather than a luxury.

This is owing to the highly rugged and inaccessible locations in the State. But what is

to be noted is that there is a huge potential for heli-tourism within the State though it

is not being developed with due significance given to tourism. The vital reason for the

existing spread and schedule of heli-services within the State is owing to the fact that



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the most beautiful places in the State remain inaccessible through other means of

travel.

2.1.2 Sikkim

Sikkim state in northeastern India, on the

southern slopes of the Himalayas Sikkim is

bounded on the north and northeast by Tibet

Autonomous Region of China, on the southeast

by Bhutan, on the south by West Bengal and on

the west by Nepal. The area is 7096 sq km. One

of the highest regions in India, Sikkim is

traversed by the main range of the Himalayas

and by several spur ranges. It is entirely mountainous, with one - third of the land

covered with dense forests of Sal, Sambal and Bamboo, which are mostly inaccessible

and unexploited. Kanchenjungha (8,598 m/28,209 ft) one of the highest peaks in the

world lie in Sikkim.

Sikkim Tourism Development Corporation (STDC) conducts regular helicopter flight

services between Bagdogra and Gangtok along with various other flights conducted in

and around Gangtok. One can enjoy a flight around the world's third highest peak Mt.

Kanchenjungha and view the Gangtok city from the sky. Tourist Services Agency is the

only authorized agent of Sikkim Tourism Development Corporation in Siliguri for

booking tickets for any of these flights. The aircraft is a 5-seater.

STDC under the assistance of its authorized agents, Tourist Services Agency has two

itineraries to offer. The Central government has identified Gangtok has a major

destination for tourism and is now investing largely on its development. Hence, in the

future to come, Sikkim would be doing it big in the domain of heli-tourism as both the

State and the Centre is taking keen interest in the same.

2.1.3 Andaman & Nicobar Islands

The Andaman & Nicobar Islands are a veritable Garden

of Eden and a naturalist's heaven. The clean

environment, roads, greenery as well as unpolluted

fresh air attract all nature lovers. The tropical rain

forests and waters of Bay of Bengal are the home of a



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vast collection of plant, animal and marine life. Topographically the islands are hilly in

places fringed with coconut palm, covered with tropical jungle and interspersed with

flat stretches of crescent shaped beaches. Adventure tourism like trekking, Island

camping, snorkeling, SCUBA diving etc. and other water sports are the real attractions.

A marvelous mix of nature's most precious delights, the Andaman & Nicobar Islands

are a once in a lifetime holiday experience.

Andaman & Nicobar Islands are referred to as the

Emerald Islands for their greenery amidst the great

Indian Ocean towards the south of the Bay of Bengal.

They already have in place helipads in different small

Islands which are utilized for inter-Island commutation.

Apart from this, there is also a large influx of foreign

tourists to the Islands which speak for the additional requirement of heli-tourism

infrastructure in place. There are also many different tourist destinations in the UT

which are worth visiting through helicopters, the aerial views of which are brilliant and

amazingly breath-taking. There is a dire necessity for heli-tourism in the Andaman &

Nicobar Islands and the Central government is thinking seriously towards resolving the

issue.

2.1.4 Jammu & Kashmir

Jammu and Kashmir is one such State in the

Union of India where Heli-tourism has been

observed over years the prime reasons being

the extreme weather conditions in the State

and also owing to the fact that most of the

tourist destinations or otherwise are remain in

accessible most of the times of the year. The

entire gamut of activities in heli-toursim has been on a gradual rise over with the

introduction of new adventure sport, called Heli-skiing, way back in 1987-88, which

added glamour to winter tourism in the State. Heli-skiing consists of being dropped by

a helicopter on the summit of a high, snow- covered peak and then skiing down the

slopes.

The helicopter transports skiers from the base, Gulmarg to heights of over 4,500m

landing on a different peak every day, whether it is Apharwat, Yusmarg or the Kolahai

glacier. In Kashmir there is already a well - organised central Gulmarg Ski Institute

conducting ski courses and competitions which became the second place in the

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world, after Canada, to offer large scale heli- skiing. The construction of a 7.5km long

gondola cable car ropeway from Gulmarg to Apharwat, which began in April 1988,

has also contributed to Kashmir becoming a year-round destination.

For promotion of tourism in the State of Jammu & Kashmir, where most of the

destinations are inaccessible, initiating the development of heli-tourism is

indispensable. With most of the destinations

which are very beautiful but are difficult are

incapable of being accessed by other means

of travel. Hence, helitourism has made it big

in this State. The heli-tourism hub in the

State pertains to the visits to Amarnath &

Vaishnodevi, both being places of high

religious significance among the Hindus in

the country. Moreover, there are glaciers

and mountain peaks which draw tourists to its grandeur can be viewed by

helicopters. In this State, heli-tourism has attained a significant stature but the same

was because without aerial mode, most of those destinations would not have been

accessed by many of the tourists.

PHHL has bagged the contract for running helicopter services to the shrine of Vaishno

Devi in Jammu & Kashmir for the year 2008. They would be operating services to

Vaishno Devi from the first week of April. The contract allows PHHL to service the

Katra- Sanjichhat- Katra sector using two Bell helicopters. The fare would be Rs 2,450

for adults and Rs 1,220 for children below 12 for a round trip. The effective new rates

would be cheaper to target more pilgrims to utilize these services.

2.1.5 Uttarakhand

The State of Uttarakhand has a wided array of tourist destinations to offer to all

segments of the tourist market. It is home to the holy places such as Gangotri,

Hrishikesh, Kedarnath and the Badrinath on one end and the on the other end it also is

home to some of the most famous hill stations such as Mussoorie, Nainital and the

Valley of flowers. The Government of Uttarakhand has completed the upgradation

work at the Jolly Grant Airport and Pant Nagar Airport. Besides, three airstrips at Naini

Saini in Pithorgarh, Gochar in Chamoli and Chinyalisaur in Uttarkashi are also ready for

operations.

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The Ministry of Civil Aviation (MoCA) have

started operations on these airports. The

state has already written to all the airlines,

asking them to start operations to

Uttarakhand and have recieved responses

from Indian Airlines, Deccan and Kingfisher

Airlines. The Jolly Grant Airport at

Dehradun essentially caters to the

Gharwal region in the state, while the Pant

Nagar Airport caters to the Kumano

region. They have felt the need to extend

helicopter operations in the state, to the

Char Dhams of Uttarakhand, i.e. Gangotri,

Yamnotri, Kedarnath and Badrinath. They

also intend to extend it to Hemkunth

Sahib, the renowned religious pilgrimage

site of the Sikhs. The government will

provide free water, security, power, fire

services, etc, to the helipads.

At present, talks are going on with Jagson Airlines, Prabhatam Aviation and Pawan

Hans Helicopter Services, and Jagson Airlines has already evinced interest in the

Kailash Mansarovar Yatra, which the state is keen to promote through helitourism. The

state government has also signed a Memorandum of Understanding (MOU) with

Gharwal Mandal Vikas and Pawan Hans Helicopter Services for developing religious

tourism in the state.

Currently, the state has 64 helipads, of which 40 are controlled by the state

government, while the rest are under the control of the Indo Tibetian Border Police

Force (ITBP). Of the 40 state-owned helipads, 15 are still under construction. PHHL has

resumed helicopter services to Kedarnath from May 2008 onwards by a 5 seater Bell

407 helicopter. The Augustmuni- Kedarnath service would be in collaboration with

Garhwal Mandal Vikas Nigam and Government of Uttarakhand. PHHL is also

constructing a hangar at Gauchar which will help widen its operations in the hill state.

2.1.6 Himachal Pradesh

Nestled at the foothills of the majestic Himalayas, Himachal Pradesh has developed as

a major center for adventure sports in India. With its unexplored valleys, towering



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peaks, snow-capped mountains and glaciers, Himachal Pradesh has all the ingredients

for adventure, packed with excitement and thrills. The location of the state amidst the

snow-clad ranges of the Shivalik, Dhauladar, Pir Pinjal and the Great Himalayas makes

Himachal ideally suited for skiing. Heli-Skiing in Himachal Pradesh has gained immense

popularity of late The sport is fast acquiring a prominent place in Himachal Pradesh

Tourism. Thousands of adventure enthusiasts visiting the land look forward to

enjoying Heli Skiing in Himachal Pradesh.

Heli-skiing is a tougher sport compared to skiing. Skiing is

generally done at moderately high mountains, where the

snow remains intact and solid. But heli-skiing is done at the

peaks, as high as 14,000 ft, where the snow is in powdery

form and usually very soft. In heli skiing in Himachal

Pradesh, the fully geared skier is carried on a helicopter

above a snow-capped peak and then dropped there.

Thereafter, the challenge begins as the skier runs down at

great speed. At such great heights, only snow and the sky is

visible, making skiing all the more difficult. Heli-skiing in Himachal Pradesh, India can

be enjoyed at Hanuman Tibba, Rohtang Pass, Deo Tibba and Chanderkhani Pass near

Manali.

2.1.7 Andhra Pradesh

Andhra Pradesh is the third largest state in India with an

area of 275,000 sq. km. A state in the southern region of

India, Andhra Pradesh is bordered on the south by Tamil

Nadu state, on the west by Karnataka state, on the north

and northwest by Maharashtra state, on the northeast

by Madhya Pradesh and Orissa states, and on the east by

the Bay of Bengal. The northern area of Andhra Pradesh

is mountainous. The prime destinations for heli-tourism in the State are the Ramoji

FilmCity, the Tirumala Tirupathi temple, the Putaparthi. Most of the tourists who come

to Andhra Pradesh would always love to visit these places. The government of Andhra

Pradesh is now taking initiatives to develop heli-tourism in these places, Tirupathi

temple being the most sought after destinations of all. Andhra Pradesh is at the initial

phases and contemporaneous with the State of Karnataka in development of heli-

tourism.



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The State has various heliservices operators such as Akinos Flights, Air Charter

Services, Deccan Aviation, etc. who offer services like chartered flights, helitours, aerial

photography, etc. However, it is to be noted that there is no single heliservices

operator exclusively meant for helitourism.

2.1.8 Kerala

Kerala has been one of the first States in the peninsular India which initialized

development of heli-tourism in the State and took some commendable steps in this

regard. Kerala has always been in

the forefront when it comes to

developing tourism related

infrastructure and was not an

exception when it came to

developing heli-tourism. Kerala is

home to the extensive coastline, with large expanse of back waters and amazing

greenery in the western ghats.

The State had in 2006, sought the assistance of King Rotors to undertake heli-tourism

flights across the State to some of its exotic locales such as the back waters of Allepey,

green valleys of Munnar in particular. Helicopter Tourism was to offer several cost

effective packages like 'Capital by Air', 'Backwaters by Air', 'Around the Hills' and

'Shoreline Flights'. While 'Capital by Air' offered a sightseeing trip around the city of

Thiruvananthapuram, 'Backwaters by Air' would take tourists around Kumarakom.

'Around the Hills' would provide tourists with a taste of Thekkady, Munnar, Kochi and

Kumarakom, while 'Shoreline Flights' would offer sightseeing facilities in Kanyakumari

along the State's picturesque

coastline. The packages were

being launched in association

with King Rotors and Air

Charter Private Limited. The

visitors were to be taken from

one tourist spot to the other in a seven-seater helicopter to save time and to do away

with discomfort on the roads.

The Kerala Tourism and the Thiruvananthapuram-based, King National Air Charter

(KNAC) were exploring the possibility of introducing an air-taxi service in the State to

ferry tourists. This was the first time in the country that helicopters would be used to

ferry tourists and the same is targeted to high end tourists. In spite of all the best



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efforts from the State tourism to promote and develop heli-tourism in the State, the

same has not fared the way it was to be. This could be owing to the lack of

coordination between the private operators and the policies of the DoT, Government

of Kerala. One interesting factor when it comes to development of heli-tourism in

Kerala is that the State has acted proactively and taken initiatives for development,

though there was no necessity to have the same.

2.2 Comparative Analysis

In the course of peer study for development of heli-tourism in the country, the status

if helitourism in all the states and UTs was taken into account but the details of only a

few of the States were accounted for in this report such that a glimpse of the

prevailing scenario can be understood. The Peer Study in development of helitourism

has thrown light on some interesting observations which are summarized in the table

below. One of the most notable points in the development of helitourism is that the

State governments have initiated plans for development of the same but the Centre is

keen on development of helitourism in only such States/UTs wherein the accessibility

to tourist destinations are prime issues.

On accomplishing the analysis the following points were inferred;

1. The development of helitourism in the States is not a function of the number of

tourist inflow per se however the tourist inflow could be an incentive for

development of the same.

2. The Centre is more inclined towards development of helitourism when accessibility

to destinations becomes an issue. This could be due to reasons such as national

security as in the case of the Islands and those States sharing International

boundaries.

3. In spite of better development of helitourism in those few States where

accessibility is an issue, there is still scope for much more development.

4. The operators in helitourism business are those who are not just exclusively into

helitourism but offer many other heliservices and helitourism contributing to a

small chunk of their total revenues.

5. In States like Jammu & Kashmir, some of the helitourism packages are bid out to

operators such as the package from Katra to Vaishnodevi.

6. The State governments are capable of providing the basic infrastructure such as

helipads for these operators in line with the requirements of helitourism.



19

7. It is suggested that the Centre rethinks and relaxes the taxes imposed on Aviation

Turbine Fuel (ATF) such that the tariffs offered by helitourism operators may be

made economical hence affordable to the common man.

8. The tariff at which helitourism is operational depends on the carrying capacity of

the helicopters and the distance of travel.

9. Single engine helicopters are more economical than the dual engine helicopters

but most of the helicopters imbibed by the operators are dual engines as they are

taken to perform multiple tasks.

With the peer study in place, it is understood that the current status of helitourism in

the State in comparison with the other States/UT in the Union of India. To be precise,

development of helitourism in the State of Karnataka requires attention and the same

needs improvement. All the observations herein made are summarized in the

following table;

State and Heli-services

Operators Location Accessibility

Tourist Arrivals (2006)

Development of Helitourism Future Prospects

Domestic Foreign

Arunachal Pradesh

(PHHL)

North Eastern

India Issue 803137 607 Good

Centre & State investing on the

projects developing helitourism

Andhra Pradesh

(Deccan Aviation)

Southern

Peninsular India Not an Issue 111715376 669617

Needs

Improvement

State keen on development of

helitourism

Sikkim

(Tourist Service

Agency)

North Eastern

India Issue 292486 18026 Good

Centre & State keen on

development of helitourism

Jammu & Kashmir

(Himalayan Helicopters,

Deccan Aviation, PHHL,

Defense helicopters,

Air Charter)

Northern India Issue 7646274 46087 Very Good

State & Centre keen on


Kerala

(King Rotors, Deccan

Aviation)

Southern


Needs

Improvement


helitourism



21

State and Heli-services

Operators Location Accessibility

Tourist Arrivals (2006)

Development of Helitourism Future Prospects

Domestic Foreign

Andaman & Nicobar

Islands (PHHL,

Chartered Helicopters)

Islands in the

Bay of Bengal Issue 118580 9045 Good

Centre & UT keen on


Uttarakhand (Deccan

Aviation, Jagson, PHHL) Northern India Issue 16666525 85284 Good

Centre & UT keen on


Hmachal Pradesh (PHHL

Helimanali) Northern India Issue 7671902 281569 Good

Centre & UT keen on


Karnataka

(Deccan Aviation)

Southern


Needs

Improvement


helitourism



22

3. Independent Assessment

The Section details out the tourism offering of Karnataka, tourism scenario in the

State, modus operandi of development of helitourism in the State, the different

project structuring options that could be utilized the State and the best project

structure that is recommended for the State to act upon.

3.1 Karnataka: A Tourist Paradise

The province of Karnataka is situated in the southern region of the Indian subcontinent

and spreads over the Deccan Plateau. The name of the land Karnataka has come from

`Kari-nadu` meaning the land of black soil say the scholars, and some others hold that

`Karunadu` also means beautiful country; either way the land is celebrated as beautiful

throughout its ancient literature. The State is situated between 74 E and 78 E

longitudes and between 11N and 18N latitudes. The topography of Karnataka is

largely a reflection of the geology of the state.

Natural and Wildlife

The Sahyadris are covered with evergreen forests. They

drop abruptly towards the Arabian Sea, thus forming a

natural barrier between the plateau and the coastal

regions. Four passes provide access to the coast. They are

the Subrahmanya Ghat, the Charmadi Ghat, the Shiradi

Ghat, and the famous Agumbe Ghat. The Western Ghats

slope gently towards the Bay of Bengal. The plateau region is drained by the two

principal rivers Krishna and the Kaveri. The average elevation

of the plateau is about 610 meters above sea-level.

Karnataka's manifold attractions include everything that

interests the visitors. The wild life sanctuaries at Bandipur,

Nagarhole and Dandeli, the Ranganathittu Bird Sanctuary; hill

stations like Nandi Hills and Kemmannagundi and Mercara,

beach resorts like Karwar, Ullal, Malpe and Maravanthe, the world famous Brindavan

Gardens at Krishnarajasagara, the Jog falls and other water falls at Shiva Samudram,

Magod, Unchelli or Lushington near Siddapur, Lalguli at Yellapur and other places

indicate the variety and richness of the attractions that Karnataka State holds out to

the visitors. There are many places of historic and religious importance.



23

History and Heritage

The great Acharyas; Shankara, Ramanuja and Madhwa,

preached in this region. Great reformers like Sri

Basaveshwara, mathematicians like Baskaracharaya,

commentators like Sayana, Saint poets like Purandaradasa

and Kanakadasa, great writers like Pampa, Harihara and

Kumara Vyasa have all enriched the heritage of Karnataka. The State has the rich

heritage and ruins of ancient empires, the chief among them being the Vijayanagara

Empire ruins at Hampi in Bellary, the Gol Gumbaz with its whispering gallery at Bijapur

and other exotic temples of the medieval era in Belur, Halebeedu, Somanathpur,

Badami, Pattadakal and Aihole.

Religion and Culture

Karnataka is also an abode of temples, churches, mosques and Jain

basadis. It is home to the huge monoliths of Gomateshwara in

Shravanabelagola, Karkala, Venur and Dharmasthala. The Jain basadis in

Karkala are the holy place of worship of Jains across the world. Other

places of religious significance are the temples in Udupi, Kollur,

Dharamasthala, Kukke Subramanya, Hornadu, Chamundi Hills and other

places of worship. The churches like St. Alosyius at Mangalore and St. Philomena in

Mysore have brilliant architecture. The majestic mosques in Bangalore and Mysore

built during the tenure of Tippu Sultan and those built by the

Bahamani Dynasty at Bijapur are incredibly magnificent. On the

cultural front, there reside diverse cults and tribes like the

Lambanis who have a unique way of life. The folk arts like

Yakshagana, Kambala, Bhootada Kola, Harikatha, etc also attract

tourists to the State.

3.2 Tourism Industry in Karnataka

The vision statement of Karnataka aims at making it one among the pre-eminent

tourist destinations in Asia, with market leadership and dominance in upscale tourism;

heritage tourism; eco-tourism; conventions and conferences; exhibitions; cruises;

theme parks; to be on par with the best in the world; to excel in every facet of tourism

industry and to emerge as a benchmark for other destinations. To realise the vision,

DoT has initiated several projects few of which are by way of Private Sector

Participation (PSP) thereby setting examples to the rest in the country.



24

The Karnataka Tourism Policy (2015-20) broadly dwells on simplified procedures for

investment, easy clearance for tourism investment and underlines the concept of

public-private partnership as the growth engine for giving impetus to develop the

critical infrastructure facilities for linking the vast untapped tourism potential of the

State.

In 2006, Karnataka accounted for 7.84 percent of the total domestic tourist arrivals

and 4.83 percent of total foreign tourist arrival in the country. Belur and Halebidu are

the popular spots amongst do mestic tourists followed by Shravanbelagola, Mysore

and Bangalore. Amongst the foreign tourists, Mysore is the most sought after

destination. In fact, a greater chunk of foreign tourists who visited India also visited

Mysore. It was ranked 4th and 8th respectively among all the States with respect to

the number of domestic and international tourist arrivals in the country for the same

year. There has also been a steady increase in the number of tourist inflow to the State

every year and development of helitourism in the State would propel the inflow of

tourist to the State in the years to come.

3.3 Demand Assessment for Helitourism

In India, there are approximately 185 operative civilian helicopters which means that

there is just one helicopter for every crore of the population. But, the scenario in the

United States is different wherein a helicopter caters to every two lakh people. Hence,

for a country developing at a rapid and sustainable rate of 9-10 percent year on year

there does exist a tremendous potential for helitourism and India should strive at all

levels to boost up helitourism.

The State Government has felt this need and has already initiated work (actual and

conceptual) on six mini airports in Hassan, Shimoga, Belgaum, Bijapur, Gulbarga and

Bellary. These airports are proposed to be developed immediately on basis which

would serve as a pedestal for growth of helitourism in Karnataka.

On secondary research including discussions with the heliservices operators in the

State, the demand assessment for helitourism in the State, identification of locations

for development of helipads and realization of infrastructure requirements in those

locations was arrived at. As according to the demand assessment studies undertaken

for helitourism in the State, the following interesting observations were made:

1. For the purposes of research, the Ministry of Tourism Report on Collection of

Domestic Tourism Statistics for the State of Karnataka which was undertaken for

the year 2005-2006 was used.



25

2. It is to be noted that the year 2005-2006 was any normal year for tourist visit and

was not barred by any extreme events which could boost up or curtail tourist

visits. Hence, projections and assumptions made with 2005-06 as base year

would not affect the demand assessment henceforth made.

3. Details with regard to age and income of tourists both domestic and

international was analysed to determine the potential demand for helitourism in

the State in percentage terms of the total tourist visits per annum.

4. On analyzing the data of the age profiles of domestic and international tourist

visit for the year 2005-2006, the total number of tourist inflow for the year was

36701431.

a. It is interesting to find that 12% (4343508) of domestic tourists and 17%

(85939) of the international tourists who visit the State are above 55 years of

age.

b. Of the total tourist visits made to the State, nearly 13.6% (4991395) of the

tourists were aged above 55 years.

c. The table given below shows the age profile of tourist visits for the year

2005-2006.

Table 4: Age profile of tourist visits to Karnataka for the year 2005-2006

Age Group

( in years)

Percentage Distribution

Domestic International Total

0-14 10.4 12.5 10.6

15-24 16.7 16.8 16.7

25-34 22.1 16.1 21.5

35-44 23.2 20.3 23.0

45-54 15.0 22.7 20.5

55-64 4.9 7.8 5.2

65 and above 7.3 9.3 7.4

Total 100 100 100

Source: Annual Final Report, Collection of Domestic Tourism Statistics for the State of

Karnataka 2005-2006

d. The presumption being that the expendable incomes of International tourists

is higher than the expendable incomes of domestic tourists and the fact that

nearly 17% (85939) of International tourists visiting the State are above 55



26

years of age, a certain percentage of this section would constitute the

potential tourists for helitourism.

e. Another prime reason that constitutes a significant factor in the growth of

helitourism is the expendable income of the tourists.

f. the table below sets out the income profile of the tourists who visited the

State in the same tenure;

Table 5: Overnight tourists and their Annual House-hold Incomes

Domestic International

Annual Household

Income (Rs)

Percentage

Distribution

Annual Household

Income ($)

Percentage

Distribution

Less than 60,000 30.6 Upto 15,000 33.9

60,000-1,00,000 24.2 15,000 – 35,000 21.9

1,00,001-2,00,000 29.1 35001-50,000 17.2

2,00,001-5,00,000 12.9 50,001-70,000 12.6

Above 5,00,001 3.2 70,001-180,000 7.5

Total 100 Above 180,001 7.0

Total 100

Source: Annual Final Report, Collection of Domestic Tourism Statistics for the State of

Karnataka 2005-2006

g. It is interesting to note that 3.2% (1158269) of the domestic tourists who

make overnight stays in the State have an annual income exceeding

Rs.500000 which means that tourists with higher annual income find it

difficult to spend more time on leisure or travel.

h. The same is the case with the International tourists wherein only 7%

(353386) of tourists with annual household incomes above USD 180,000 have

made overnight stays.

i. In both the cases, the tourists who had higher income brackets less opted for

overnight stays, that is they have less time for travel or leisure and desired to

make the most of the time available wherein money was not a constraint.

Hence, it is clear that of the total tourist visits to the State, there exists a category

which would opt for helitourism. The demand estimate for helitourism in the years to

come would be approximately 2000000 every year which is arrived on the slabs of



27

income and age profiles as showcased in the earlier reports. The same when suitably

developed promises a bright future for the growth of helitourism.

Table 6: Overnight tourists and their Annual House-hold Incomes

Domestic International

Annual Household

Income (Rs)

Percentage

Distribution

Annual Household

Income ($)

Percentage

Distribution

Less than 60,000 30.6 Upto 15,000 33.9

60,000-1,00,000 24.2 15,000 – 35,000 21.9

1,00,001-2,00,000 29.1 35001-50,000 17.2

2,00,001-5,00,000 12.9 50,001-70,000 12.6

Above 5,00,001 3.2 70,001-180,000 7.5

Total 100 Above 180,001 7.0

Total 100

Source: Annual Final Report, Collection of Domestic Tourism Statistics for the State of Karnataka

2005-2006

3.4 Need for the Project

The need for developing helitourism circuits is felt owing to the following reasons

Promote investments in the sector under the New Tourism Policy 2015-20

Need to boost up the Tourism Industry in Karnataka

Rising middle class & Increased Affordability

Providing an unique experience to the visitors

Expected Increase in Tourist Footfalls

Encourage livelihood opportunities for the local population

3.5 Helitourism Circuits

To facilitate organized functioning of helitourism in the State of Karnataka, GoK has

identified three circuits in the State to begin with, which have three different tourism

products to offer. The three circuits briefly cover all the prime tourist destinations that

would appeal to both the domestic and the foreign tourists. The three circuits

identified are given in the table below;



28

Table 7: Helitourism Circuits

Circuits Prime destinations

Coastal Mangalore- Kaup- Udupi- Kundapur- Kollur- Gokarna- Karwar

Heritage Hampi- Badami- Pattadakal- Aihole- Bijapur

Malnad Shimoga- Chikamagalur- Coorg- Hassan

The circuits mentioned in the table above include most of the prime destinations that

the State has to offer, but it is also to be noted that there are other destinations in the

State which ate worth the visit and are capable of being categorized as stand alone

destinations. The GoK is at present keen on developing the three circuits to begin with

and then on expand the scale and scope of operation taking under its purview the

other destinations.

Another prominent circuit that can be developed would be the pilgrim circuit which is

discussed at length in the later part of this section. Furthermore, the itineraries for

every circuit would be so designed that the tourists would have a option to choose

among the destinations that are a part of the circuit and opt for them.

3.5.1 Coastal Circuit

Karnataka has a long and lovely coastline

which has extensive stretches of beaches,

estuaries, sand dunes, backwaters, islands

and lagoons. The circuit intends to capture

the exotic beauty of that the coastlines of

Karnataka have to offer. The itinerary

would be designed accordingly such that

the tourists never lose the flavour of the

coastal beauty, culture and heritage. The

different tourist locations that are covered

under this circuit can be seen in the picture

to the right.

For the same reason, the DoT, GoK has

proposed the development of helipads at

all the prime destinations that fall under

this circuit such as Mangalore Karkal,



29

Udupi, Kundapur, Kollur, Gokarna and Karwar. Many of these destinations may not

have a helipad at the city centre but the helipads are developed so as to enable the

ease of tourist travel. The prime destinations are discussed herein below;

3.5.2 Heritage Circuit

Karnataka is a land of rich culture and heritage,

which are showcased by the monuments and ruins

of the past which stand testimony to the ecstatic

past of the State. It has two World Heritage Sites

each in Hampi and Pattadakal in the Great Deccan

Plateau hence the heritage circuit seems to be the

most promising and interesting of the rest.

The circuit runs through the rugged plateau

traversed by the rivers and the plains. GoK has

plans for development of helipads in all the prime

tourist destinations thus initiating this circuit. The

circuit would primarily consist of the ruins of the

past, the temples built during the rule of the

ancient dynasties such as the Cholas, Chalukyas

C

O

A

S

T

A

L

KARWAR

MANAGALORE

KARKAL

KA DHARMASTHALA

KA

KOLLURU

KA UDUPI

KA

KAUP

KA SURATHKAL

KA

MALPE & ST. MARY’S

KUNDAPUR

MURDESHWAR

GOKARNA

DEV BAGH

MARAVANTHE



30

and the great Vijayanagara Empire.

The circuit would be a treasure hunt by the end of which every tourist would get a

flavour of the magnificent heritage that the State has in store to offer. The major

tourist destinations that form a part of the heritage circuit are shown in the figure

above and featured picturesque below:

3.5.3 Malnad Circuit

Malnad is considered to be the most beautiful and

pleasant locale in the entire State which is the

home of the Western ghats. It consists of the hill

ranges, valleys, gorges traversed by the rivers and

sporting water falls and rapids. The dense jungles

and the rare species of the wildlife make it a

pleasure to tour the Malnad regions of the State.

The endemic species of the flora and the fauna in

Malnad are the treasure that the make this circuit

worth visiting.

H

E

R

I

T

A

G

E

BIJAPUR

HAMPI

BADAMI

PATTADKAL

AIHOLE

BELLARY

BAGALKOT



31

The GoK has plans for developing helipads on the prime tourist destinations which fall

under this circuit which is showcased in the map to the right. The Malnad circuit

presents to the tourists the greener and nature at its best aspects of Karnataka

thereby baffles the tourists who could never have expected this facet of the State.

Stretching from the district of Shimoga to Hassan, it includes the prime hill stations of

the State.

All the circuits are conceptualized in a manner such that many of the destinations are

covered under the circuits. The destinations which fall under the circuits are those

which are not exploited to their full potential. Helipads are proposed at most of the

prime destinations or otherwise, the at the district headquarters. In the chapters to

follow we shall discuss the mode of developing helitourism with due regard to the

circuits as discussed above.

M

A

L

N

A

D

JOG FALLS

AGUMBE

KUDREMUKH

CHIKMAGALUR KODCHADRI KEMMANAGUNDI

SHIMOGA

COORG

SRINGERI

HORANADU

SAKALESHPUR

SAGAR

HASSAN



32

3.5.4 Other circuits and destinations

Apart from the above referred to circuits there are other destinations in the State

which are worth a visit through helitourism. A separate package may be designed

which could include individual stand alone destinations and pilgrim helitours. The

pilgrim helitours would include the following destinations and circuits could be

customised for the destinations as required by the tourists;

Gokarna

Murdeshwar

Kolluru

Udupi

Karkala

Dharmasthala

Kukke

Subramanya

Sringeri

Hornadu

This circuit could be in demand throughout all the seasons for tourists who come from

all parts of the country and the world. It would also appeal the business class or

entrepreneurs who have time constraints but would wish to go on a fast track

pilgrimage.

The development of helitourism would result in four packages which are as follows;

1. Package 1: Coastal Circuit

2. Package 2: Malnad Circuit

3. Package 3: Heritage Circuit

4. Package 4: Customised destination tours to other destinations and pilgrim circuit.

Hence, if the entire gamut of activities is to be fragmented then ideally it would result

in the above four packages.

3.6 Helitourism in districts



33

Helitourism in the State has a tremendous potential

and the same is owing to the wide range of

attractions that every district in the State has to

offer to all segments of the market. The helitourism

prospects in many of the districts are discussed

below:

Bengaluru also known as the Garden City is the capital city of the State. It attracts

huge influx of tourists every year and people across the world identify the State with

this City. In recent times Bangalore is not just known for its colonial monuments and

gardens but has earned a name for itself as the Silicon Valley of India. It has emerged

as one of the most sought venues for medical and business tourism in recent times. To

cater to the exorbitant needs of the city three helipads have been proposed by KSTDC

one each in Peenya Industrial Area, Electronic City and in Bangalore South

Mysuru is the second largest city in the state of

Karnataka, India and the headquarters of the

Mysore district. Mysore is famous for the

festivities that take place during the Dasara

festival when the city receives a large number of

tourists. Mysore also lends its name to the

Mysore style of painting, the sweet dish Mysore

Pak, and the garment called the Mysore silk saree.

Mysore is a tourism hot spot within the state of Karnataka and also acts as a base for

other tourist places in the vicinity of the city. The city

receives the maximum number of tourists during the

period of the Dasara festival when festivities take place

for a period of 10 days. One of the most visited

monuments in India, the Ambavilas Palace (also known as

Mysore Palace) is the center of the Dasara festivities. The

Jaganmohana Palace, the Jayalakshmi Vilas and the

Lalitha Mahal are some of the other palaces in the city. Chamundeshwari Temple, atop

the Chamundi Hills and St. Philomena's Church are popular

religious places in Mysore. The Mysore Zoo, established in 1892,

the Karanji and Kukkarahalli lakes are also popular spots for

tourists. Museums in Mysore include the Regional Museum of

Natural History, the Folk Lore Museum, the Railway Museum

and the Oriental Research Institute. The city is also a centre for

yoga-related health tourism that attracts lot of foreign visitors

as well. A short distance from Mysore city is the

http://en.wikipedia.org/wiki/Karnataka

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Mysore_district

http://en.wikipedia.org/wiki/Mysore_Dasara

http://en.wikipedia.org/wiki/Mysore_painting

http://en.wikipedia.org/wiki/Mysore_Pak

http://en.wikipedia.org/wiki/Mysore_Pak

http://en.wikipedia.org/wiki/Silk

http://en.wikipedia.org/wiki/Saree

http://en.wikipedia.org/wiki/Mysore_Dasara

http://en.wikipedia.org/wiki/Mysore_Palace

http://en.wikipedia.org/wiki/Chamundi_Hills

http://en.wikipedia.org/wiki/St._Philomena%27s_Church,_Mysore

http://en.wikipedia.org/wiki/Mysore_Zoo

http://en.wikipedia.org/wiki/Karanji_lake

http://en.wikipedia.org/wiki/Kukkarahalli_lake

http://en.wikipedia.org/wiki/Regional_Museum_of_Natural_History_Mysore

http://en.wikipedia.org/wiki/Regional_Museum_of_Natural_History_Mysore

http://en.wikipedia.org/wiki/Folk_Lore_Museum_Mysore

http://en.wikipedia.org/wiki/Railway_Museum_Mysore

http://en.wikipedia.org/wiki/Oriental_Research_Institute_Mysore

http://en.wikipedia.org/wiki/Yoga

http://en.wikipedia.org/wiki/Health_tourism

http://en.wikipedia.org/wiki/Image:Brindavan.jpg



34

Krishnarajasagar Dam and the adjoining Brindavan Gardens where a musical fountain

show is held in the evening. Places of historic importance lying close to Mysore are

Srirangapatna, Somanathapura and Talakad. The hills, B R Hills and Himavad

Gopalaswamy Betta and the hill stations of Ooty and Madikeri are all near Mysore.

Popular destinations for wildlife enthusiasts near Mysore include the National Parks at

Bandipur and Nagarhole, the wildlife sanctuaries at Melkote and B R Hills and the bird

sanctuaries at Ranganathittu and Kokrebellur. Other tourist spots near Mysore include

the religious locations of Nanjanagud and Bylakuppe and the waterfalls at

Shivanasamudra.

Udupi, popularly known as the temple town is world famous for its

Sri Krishna Temple. Yet another famous temple that belongs to this

district is situated in Kollur called the Sri Kolloru Mookambike

Temple. Thousands of tourists flock to Udupi to offer their prayers.

Apart from being a pilgrimage, it has reformed its image to being a

venue for education tourism credit attributed to the Manipal

Univeristy in Manipal which is in close proximity to Udupi.

Furthermore, the vast stretch of beaches and the Western Ghats that line its

boundaries make it an excellent holiday destination. This justifies the two helipads

proposed for the district one each in Udupi City and Kollur.

Chikkamagaluru lies in the heart of the Western Ghats,

known as Malnad in Karnataka it enjoys the courtesy of

mother nature at its summit. The district is extensively

covered with coffee, cardamom, aracanut, cocoa and

rubber plantations. The soil here is extremely fertile

providing for many species of flowers to blossom in these

valleys. The weather at Chikamagalur is pleasant which is

cool in both summer and winter seasons. The district also locates the famous

Annapoorneshwari temple at Hornadu which attracts devotees from different

quarters. The two helipads proposed for the district one each at Chikamagalur City and

at Hornadu would boost tourism in the district.

Hassan shares its boundary with Bangalore and two helipads have

been proposed in the district one each at Hassan City and at Belur.

Belur and Halebidu are acknowledged as World Heritage Sites for the

two exquisite medieval era temples situated there. Another famous

tourist destination at Hassan is the Monolith of Bahubali at

Shravanbelagola which is the tallest monolith structure in the world.

Apart from the beautiful samples of architectural wonders in the district, Hassan also

serves as an emerging industrial hub in the State.

http://en.wikipedia.org/wiki/Krishna_Raja_Sagara

http://en.wikipedia.org/wiki/Brindavan_Gardens

http://en.wikipedia.org/wiki/Musical_fountain

http://en.wikipedia.org/wiki/Srirangapatna

http://en.wikipedia.org/wiki/Somanathapura

http://en.wikipedia.org/wiki/Talakad

http://en.wikipedia.org/wiki/B_R_Hills

http://en.wikipedia.org/wiki/Himavad_Gopalaswamy_Betta

http://en.wikipedia.org/wiki/Himavad_Gopalaswamy_Betta

http://en.wikipedia.org/wiki/Ooty

http://en.wikipedia.org/wiki/Madikeri

http://en.wikipedia.org/wiki/Bandipur_National_Park

http://en.wikipedia.org/wiki/Nagarhole_National_Park

http://en.wikipedia.org/wiki/Melkote

http://en.wikipedia.org/wiki/B_R_Hills

http://en.wikipedia.org/wiki/Ranganathittu

http://en.wikipedia.org/wiki/Kokrebellur

http://en.wikipedia.org/wiki/Nanjanagud

http://en.wikipedia.org/wiki/Bylakuppe

http://en.wikipedia.org/wiki/Shivanasamudra



35

Shivamogga is also called the Rice Bowl of Karnataka where

paddy is grown extensively year on year. The district has rich

reserves of forests, valleys and water falls. The highest

water falls in Asia lies in this district at the Jog where in the

River Sharavathi plunges in its majestic fervour. Shimoga has

also been the land of poets, writers and politicians such as

Kuvempu, U R Ananthamurthy and other notable politicians. Hence, two helipads have

been proposed one each at Shikaripura and at the Jog.

Bijapur has a plethora of architectural wonders located within it. It is the abode of the

world famous Gol Gumbaz. It has a blend of both Hindu and Islamic work of art to take

pride in. Thousands of tourists visit Bijapur to experience a rich architectural heritage.

Bagalkot is yet another popular tourist destination of

the State. Badami taluk belonging to Bagalkot remained

the seat of the throne of the Chalukyas from 550 CE —

753 CE, when Chalukya king Kirtivarman II was

overthrown by the Rashtrakutas. The 12th century

social reformist Basavanna, known for his crusade

against caste exploitation was born in Koodalasangama,

a town in the taluk of Hungund. Remnants of Chalukyan art and architecture are

important tourist attractions in Bagalkot. Pattadakal has many UNESCO World

Heritage temples built by Vikramaditya II, while Aihole, which lies on the banks of the

Malaprabha River, is an important temple town with over 140 temples belonging to

both the early and later Chalukya times. The cave temples of Badami Cave Temples

and the Jain temples of Rashtrakutas at Lokapura and Bilgi are also famous.

Ballari is one of the most visited districts of the State owing to

the ancient ruins of the then Vijayanagara Empire. The entire

stretch of land at Hampi is already a destination on the world

tourism map for being the declared as the World Heritage Site.

But it is not just Hampi that draws the attention of tourists but

the entire Bellary which has much more to offer for its tourists.

Dakshina Kannada is the district which lies on the western side of the State. It has an

extensive coastal belt in the west and the western ghats in the

east. The district is known for its numerous beaches, hills,

peaks and places of religious significance. Earlier, the district of

Udupi was a part of Dakshina Kannada. This district has the

highest percentage of literates in the State and is the venue for

education tourism.

http://en.wikipedia.org/wiki/Badami

http://en.wikipedia.org/wiki/Kirtivarman_II

http://en.wikipedia.org/wiki/Rashtrakuta

http://en.wikipedia.org/wiki/Social_reform

http://en.wikipedia.org/wiki/Basavanna

http://en.wikipedia.org/wiki/Caste

http://en.wikipedia.org/wiki/Kudalsangam

http://en.wikipedia.org/wiki/Hungund

http://en.wikipedia.org/wiki/Pattadakal

http://en.wikipedia.org/wiki/UNESCO

http://en.wikipedia.org/wiki/World_Heritage_Site

http://en.wikipedia.org/wiki/World_Heritage_Site

http://en.wikipedia.org/wiki/Vikramaditya_II

http://en.wikipedia.org/wiki/Aihole

http://en.wikipedia.org/wiki/Malaprabha_River

http://en.wikipedia.org/wiki/Badami_Cave_Temples

http://en.wikipedia.org/wiki/Jain

http://en.wikipedia.org/wiki/Rashtrakutas



36

Uttara Kannada is home to numerous beautiful and serene beaches such as the Om

beach in Gokarna, the Dev Bagh islands in the Karwar region. It has nt just the beaches

to its credit but also the islands and the ghats within the interiors of the district. Being

in proximity to the State of Goa is another advantage in the realms of helitourism for

the Uttara Kannada. It also houses the ports of Karwar, Tadri, Honnavar, etc and thus

is a very significant destination for tourist visits.

Raichuru lies in the eastern part of Karnataka. It also has places of historic significance

which makes it an attractive destination for tourists. Among the historical attractions

in the district, notable are the Raichur fort, built in 1294, a number of monuments

from the Vijayanagara empire, including the Ranganatha temple, Pampa lake and

Kamal Mahal, Jaladurga fort of Lingsugur taluk. The Raichur Thermal Power Station at

Shaktinagar in this district provides a large portion of the electricity consumption in

Karnataka. Raichur District is one of few places in India where gold resources are

present. Hatti Gold Mines are situated in Raichur District, around 90km away from

Raichur city.

Kodagu also called Madekeri is one of the pleasant districts in

the State. Major parts of this district consists the western ghats

covered with coffee estates, tea estates, orchards on terraced

farming. The holy river of the South River Cauvery rises in the

district thus making it a place of religious significance. Otherwise,

Kodagu is the district in Karnataka which has a pleasant climate and atmosphere in

widerness.

Gadag district is bounded on the north by Bagalkot District, on the east by Koppal

District, on the southeast by Bellary District, on the southwest by Haveri District, on

the west by Dharwad District, and on the northwest by Belgaum District. Gadag

District was formed in 1997, when it was split from Dharwad District. A number of late

Chalukyan monuments (11th-12th centuries) in the city indicate its historic past. The

Temple of Veera Narayana and Trikuteshwara are places of religious and historic

importance.Jumma Majid it consists Hindu Muslim trust. There are two main Jain

temples are dedicated to Parshvanatha Thirthankara and Mahaveeera.

Chitradurga gets its name from Chitrakaldurga, an umbrella-

shaped lofty hill found there. Tradition dates Chitradurga

District to the period of the Ramayana and Mahabharata. The

whole district lies in the valley of the Vedavati River, with the

Tungabhadra River flowing in the northwest. During the British

times it was named Chitaldurg. The district was practically ruled by all the well known

dynasties that ruled Karnataka. Chitradurga features bold rock hills and picturesque

http://en.wikipedia.org/wiki/Vijayanagara

http://en.wikipedia.org/wiki/Ranganathaswamy_Temple_(disambiguation)

http://en.wikipedia.org/wiki/Jaladurga

http://en.wikipedia.org/wiki/Lingsugur

http://en.wikipedia.org/wiki/Raichur_Thermal_Power_Station

http://en.wikipedia.org/wiki/Karnataka

http://en.wikipedia.org/wiki/Gold

http://en.wikipedia.org/wiki/Hatti_Gold_Mines

http://en.wikipedia.org/wiki/Bagalkot_District

http://en.wikipedia.org/wiki/Koppal_District

http://en.wikipedia.org/wiki/Koppal_District

http://en.wikipedia.org/wiki/Bellary_District

http://en.wikipedia.org/wiki/Haveri_District

http://en.wikipedia.org/wiki/Dharwad_District

http://en.wikipedia.org/wiki/Belgaum_District

http://en.wikipedia.org/wiki/1997

http://en.wikipedia.org/wiki/Dharwad_District



37

valleys, huge towering boulders in unimaginable shapes. It is known as the "stone

fortress" (Kallina Kote).

Hubballi is home to the protected forests, sanctuaries and wildlife zones such as in

Dandeli and Yellapur. It is an abode for some of best falls and jungles with exotic flora

and fauna. Hubli is a commercial district as well has in store some of the best gifts of

nature. The river rafting in river Kali is another attraction that is offered at Dandeli

which attracts many tourists to this wonderful destination.

Apart from the districts and places discussed above, it is proposed that for every other

district headquarters, a helipad be developed so as to induce helitourism and lack of

infrastructure would not curb helitourism in these regions.



38

4. Investment Details

The Section includes the investments required to be made for the development of

helitourism in the State, the investments necessary to build up the minimum

infrastructural requirements across the State.

4.1 Infrastructure Investments

The following are the key infrastructure requirements that would be necessary for

development of helitourism at any destination.

1. Helipads

2. Helicopters

3. Off board activities

4.1.1 Helipads

A Helipad of area to the extent of 30*30 metres is advisable. It should be free from

dust and loose soil with a tarmac / bitumen pavement or a firm ground. Dust that

would rise up in the event of landing and taking off of the helicopter would damage

the engines of the helicopter. It is also required that there should be some open space

in and around the helipad up to one acre of land. This would ensure that the flight and

landing are both safe and hassle free. Fencing of the entire one acre plot with a gate is

required to safeguard the area from encroachments. A proper road that connects the

landing space of the helicopter with the gate is necessary to make the travel more

comfortable and well organized. Security of armed personnel is to be made available

for the helicopters during the tenure that they are landed in any helipad. A security

staff of atleast three armed officials would suffice this requirement. A security

quarters would be conducive for the security personnel. A guest house with basic

amenities in close proximity to the helipad would be required for the pilot when the

helicopter remains parked at the helipad.

An estimate of the costs of developing a helipad and the basic support infrastructure is

set out in the table below; these estimates are excluding the cost of land. It is assumed

that these helipads would be developed on government land.



39

Table 8: Proposed Investments for development of Helipads

Sl. No. Particulars Measurements Investment

Proposed (in Rs.)

1 Helipad 900 square metres 9.0 lakh

2 Fencing 280 running metres 3.3 lakh

3 Gate - 0.3 lakh

4 Road from Helipad to the

Gate 100 running metres 1.8 lakh

5 Security Quarters 600 square feet 7.2 lakh

6 Pilots Rest Room 400 square feet 4.8 lakh

Total 26.4 lakh

The proposed investment for the development is approximately Rs.26.4 lakhs. The

development of a helipad requires the bare minimum amount of infrastructure hence,

the set up cost is less and easy for any private operator to venture into.

4.1.2 Helicopters

To operate within the State, there is a requirement of helicopters. It is observed that

the helitourism operators in foreign countries such as the USA make use of single

engine helicopters for the purpose as the same is fuel efficient thus making the travel

more affordable to the tourists. On an average, a single engine helicopter would cost

anywhere between Rs.4.5 Crores to 15 Crores. Annexure 2 showcases the base price

for a single engine helicopter based on the type of model used.

For the requirement of helitourism the requirement of the type of helicopter would

depend on the following factors;

1. Exclusivity of the usage to helitourism would mean that a single engine helicopter

would suffice the requirements

2. The demand for the existing destination or circuit. This being the case it is ideal to

deploy helicopters with seating capacity of 8 persons in the circuit/destination tour

3. A helicopter with reasonable features that is a ‘no frill’ helicopter would serve the

purpose of helitourism of what is discussed in the report. For the luxury of

helitourism a separate project can be initiated namely; ‘Luxury Helitourism’. This



40

being the case, the price of every helicopter for the purpose of helitourism in this

project may be on an average Rs.8 crores

The idea is to make regular trips to the destinations referred to in the circuits, if the

visits scheduled for every week then a minimum of three helicopters would be

required for the said purpose which would cater the requirements of fifteen tourists

per week. The requirement for every circuit would be three and two other helicopters

would be required to cater to customised tours which would cover other stand alone

destinations. In all, the requirement of helicopters would be 12+2 that is 14

helicopters for reaching out all destinations in the State exclusively for helitourism.

4.1.3 Off-board activities

Another important part of the expenditure would be the collaboration of the

helitourism operators with other private entities for the purpose of off board activities

which would include;

1. the hotel and resort operators,

2. the road transport agencies,

3. catering agencies,

4. guides,

5. tourism facility providers (theme parks, amusement parks, museums, etc.).

It is understood that the helitourism offered by the State would include the hopping to

different tourism nodes/ district head quarters where the helipads are located and

then commuting to the specific destinations via road or rail transport. It is left to the

helitours operators to choose the off board activities thus making the entire

experience of helitourism more attractive and memorable.

The private entities that offer the off-board activities would provide the helitourism

operator with a certain percentage or commission for every tourist who flies and

converts a customer to off board activities. A similar tie up works between the Jungle

Lodges and Reosrts (JLR) at Kabini Elephant Park and the Deccan Aviation wherein the

JLR makes a certain payment to Deccan Aviation for every tourist taken through

helitourism at Kabini.



41

4.2 Revenue Model

The project would include both investments and revenues accruing to the operator

who would want to be a part of the project. The table below would give the major

avenues for cash outflow owing to the investments/expenditure;

Table 9: Sources of cash outflows for helitourism operators

Investments or Expenditure (as the case may be)

Sl.

No

Particulars Type Condition Amount

1. Helicopters

Capital Purchase Rs. 8 crores per helicopter and the

total requirement per circuit

(package) would be minimum of 3

helicopters

On lease Then pay lease rentals accordingly

2. User Charges Operational PWD on parking,

tenure of parking

and security

Nominal charges, the landing charges

would be Rs.1500/- per landing and

then would again depend on the time

frame the helicopter is stationed in

the helipad

3. Aviation Turbine

Fuel & Service tax

Operational Mandatory to be

paid

Depending on the usage

4. Salaries and other

administrative

expenses

Fixed Paid to the staff,

pilot, other

ancillary support

staff

Depends on the scope and scale of

operations

5. Revenue Sharing Operational With the DoT in

case the same is

agreed upon

Depends on what is incorporated in

the agreement

Thus the investment that the operator would make is only on the helicopters (if

required) otherwise, it is only the expenditure that it would have to incur in fulfilling its

operational and fixed costs. A rough quantum of investment (cash outflow) to operate

a circuit (excluding investments on fuel, salaries and revenue sharing) could be on an

average as mentioned in the following table;



42

Table 10: Cash outflow for helitourism operators

Sl.

No.

Helicopters User Charges

On purchase of helicopters

1. Rs. 24 crores on Purchase of helicopters (3 helicopters *

price of one helicopter) or less depending on the number

of helicopters purchased or deployed for the purpose. But,

ideally it may not exceed Rs. 25 crores

Rs. 12 lakh (Rs.25,000 per

week*4*12) on parking,

security, landing charges in

helipads per year

On lease of helicopters

2. Lease rentals (depends on what is agreed upon by DoT and

operator)

Rs. 12 lakh (Rs.25,000 per

week*4*12) on parking,

security, landing charges in

helipads per year

Hence, the cash outflow in initiating helitourism in any circuit would on an average be

to the tune of Rs. 30 crores. (Rs.25 crores+ other expenses such as ATF and fixed costs)

The sources of revenues to the helitourism operator is summarised in the table below;

Table 11: Sources of cash inflow for helitourism operators

Revenues

Sl.

No.

Particulars Kind Condition

1. Tickets Operational Depending on the number of tourists, the

distance traveled between the destinations

and the type of helicopter used

2. Commission from the private

entities who are into off-board

activities

Operational

Depends on the agreement between the

operator and the private entity that would

provide the off-board activities.

3. Negative grant Operational Paid by DoT depending on the contract

entered into between the operator and DoT

It is to be noted that the investments and the expenditure in operating the circuits

would be considerably lower than what is suggested if the same operator is to operate

more than one circuit. In such a situation, the operator would have the flexibility in



43

deciding the number of helicopters utilized in each circuits and use them inter circuits

in accordance with demand hence attain optimum utilization of helicopters.

In the view of DoT, the risk of initiating, operating and maintaining helitourism in the

State is transferred to the operator. The only investment that the DoT or any other

government authority is making is with regard to the helipads and gaining the

necessary approvals for helitourism wherever applicable.



44

5. Project Structuring Options

This Section includes the different options of project structuring, probable packages,

circuits proposed and the pros and cons of each option along with the recommended

option for the State that would result in a win-win situation for both DoT and the

Operator.

5.1 The Project

DoT is looking into developing an organized sector for helitourism in the State thereby

mobilize more tourists to experience the luxury of flying low and slow over the exotic

tourist destinations. It is proposed that DoT, GoK would be developing helipads across

the State in 34 locations, operating and maintaining them for the use of heliservices

including helitourism. It has also designed three circuits within the State which would

cover most of the attractive tourist destinations. However, there could also be other

stand alone destinations and pilgrim circuit which can be made available for the

tourists on customised tours.

In this project, it is proposed that the government takes the onus of developing,

operating and maintaining the helipads and the operators would pay the user charges

to the government (user charges to include, the landing and parking charges with

security). The helicopters are to be owned by the operators or could be given on lease

to the operators as the case may be depending on the project structure which is

adopted. The circuits although suggested by DoT however, the itineraries are left to

discretion of the helitourism operators and might also substantially contribute towards

their selection.

The marketing of the helitourism products could be jointly be undertaken by DoT but

more onus would be on the operator. DoT could showcase the same on its website but

would not comprehensively indulge in promotion of helitourism.

5.2 Project Structure Options

The project structure options are based on the type of risk incurred by either of the

two parties, being DoT and the Operator. The project structuring would differ on the

basis of the following factors;

1. Bidding out of all circuits as a single package or each circuit as a different package

2. Ownership, O&M of helicopters

3. Onus of Development, Operation and Maintenance of helipads



45

4. Marketing risks

5. Off board activities

6. Revenue sharing model

7. Bid parameter

The following table discusses the project structure options in brief which would follow

discussion on each of the project structure option in detail.



46

Table 12: Project Structure Options in brief

Option Bidding of

Circuits Helicopters Helipads

Marketing &

Promotion

Collaboration for off

board activities

Revenue

Sharing

Bid

Parameter

1

All circuits as one

package bid out

to one private

helitourism

operator

Government to

provide the

helicopters on

lease whereas

the O&M of the

same lies with

the Operator

Development,

operation and

maintenance of

helipads lie with

the PWD.

Operator to pay

user charges

By Operator

however the DoT

would provide the

basic information on

its official website

and also provide for

a hyperlink

Operator is free to

collaborate with other

private entities in various

destinations such as the

Taj in Chikkamagalur or

the Orange County

Resort and other home-

stays in Coorg

Operator to

pay the lease

rentals on

the

helicopters

Highest

lease

rentals

offered

2

Every circuit is bid

out as separate

package and

offered to

different private

helitourism

operators

Government to

provide the

helicopters on

lease whereas

the O&M of the

same lies with

the Operator

Development,

operation and

maintenance of

helipads lie with

the PWD.

Operator to pay

user charges

By Operator

however the DoT

would provide the




a hyperlink

Operator is free to



destinations

Operator to

pay the lease

rentals on

the

helicopters

Highest

lease

rentals

offered

3


out as separate

package and

offered to

different private

helitourism

By operator

Development,

operation and

maintenance of

helipads lie with

the PWD.

Operator to pay

By Operator

however the DoT

would provide the




Operator is free to



destinations

Operator to

pay a share

of revenues

so earned to

the DoT

Highest

share of

revenue

offered



47

operators user charges a hyperlink

4

All circuits as one

package bid out

to one private

helitourism

operator

By Operator

Development,

operation and

maintenance of

helipads lie with

the PWD.

Operator to pay

user charges

By Operator

however the DoT

would provide the




a hyperlink

Operator is free to



destinations

No revenue

sharing but

DoT to offer

a grant

Least

quantum

of grant

requested

by the

Operator

5


out as separate

package and

offered to

different private

helitourism

operators

By operator

Development,

operation and

maintenance of

helipads lie with

the PWD.

Operator to pay

user charges

By Operator

however the DoT

would provide the




a hyperlink

Operator is free to



destinations

Operator to

provide to

DoT a certain

share of the

revenues

earned

Highest

share of

revenue

offered to

DoT

Herein below are discussed the different project structure options that are suggested in development of helitourism in the

State. Every option would have its share of merits, demerits and the optimal project structuring option may be made out on

the basis of the offerings made by helitourism operator during the selection process.



48

5.2.1 Option 1

Table 13: Option 1 details for helitourism

Option 1

Packages All circuits are bid out as one package to one private helitourism

operator

Helicopters All the helicopters would be provided to the operator by the

government

O&M of Helipads By PWD, but operator to pay user charges

Marketing & Promotion By Operator however the DoT would provide the basic information

on its official website and also provide for a hyperlink

Off board activities Operator to collaborate with other private entities

Revenue Sharing Operator to pay the lease rentals on the helicopters

Bid Parameter Highest lease rentals

Merits

The operator would not have to make capital investments on helicopters

hence providing incentives to the helitourism operator to participate.

Since all the circuits are bid out as one package, the operator an work on the

scale and scope of operations, resulting in optimum use of resources making

the service more affordable.

Optimum usage of helicopters by utilizing more helicopters in the circuits

where the demand is more and vice versa.

Standardisation of services offered across the State.

Demerits

If entire operation is bid out to one operator, it would create monopoly status

and thus lead to the risk of inefficiency and complacency in future

There is a constraint on number of helicopters



49

5.2.2 Option 2


Option 2

Packages Every circuit is bid out as one package and offered to different

private helitourism operators

Helicopters All the helicopters would be provided to the operators by the

government

O&M of Helipads By the PWD, but operator to pay user charges



Off board activities Operators to collaborate with other private entities

Revenue Sharing Operators to pay the lease rentals on the helicopters

Bid Parameter Highest lease rentals

Merits

It is ensured that the selection criteria could be made more specific to every

circuit hence the process of selection can be more streamlined

It would not give way to monopoly in the helitourism industry of the State

Demerits

Standardisation of services cannot be assured owing to different operators

operating simultaneously

The tariffs may not be economical owing to lack of scale and scope of

operations.



50

5.2.3 Option 3


Option 3



Helicopters By Operator

O&M of Helipads By PWD but operator to pay user charges



Off board activities Operator to collaborate with other private entities

Revenue Sharing Operator to pay a share of the revenues so earned to the DoT

Bid Parameter Highest share of revenue offered

Merits

The government is not investing on the helicopters, the risk is hence

transferred.

It is ensured that the selection criteria could be made more specific to every

circuit hence the process of selection can be more streamlined

It would not give way to monopoly in the helitourism industry of the State

Demerits

Standardisation of services cannot be assured owing to different operators

operating simultaneously

The tariffs may not be economical owing to lack of scale and scope of

operations



51

5.2.4 Option 4


Option 4

Packages All circuits are bid out as one package to one private helitourism

operator






Revenue Sharing No revenue sharing but DoT could offer a grant

Bid Parameter Least quantum of grant requested

Merits

No investments to be made by the DoT except the grant.

Incentive for the helitourism operator to exploit the entire demand for

helitourism in the State.

Efficient use of resources by the operator and the tariff may be hence

affordable.

Operator to have flexibility in operations.

Demerits

Monopoly in the industry hence complacency and inefficiency may crop up

DoT may have to provide annual grants towards helitourism.



52

5.2.5 Option 5


Option 5








Revenue Sharing Operator to pay a share of the revenues so earned to the DoT

Bid Parameter Highest share of revenue offered

Merits

Flexibility to the operator to function optimally

DoT would have no investments to make apart from bidding out the packages

Monopoly in the industry may be ruled out

Small players in the industry could make an attempt to participate

DoT would earn a fixed return (revenue share) every year

Demerits

Standardisation of services may not be assured in this option

Operator may find it difficult to earn on the scale and scope of operations thus

making it affordable to the tourists

On analyzing the different option of project structuring, it is herein suggested that

Option 5 would be the best suited for helitourism in the State. This option would



53

result in a win-win situation to both the DoT and the helitourism operator hence

boosting helitourism in the State.



54

Annexure I

List of 20 helipads as proposed by GoK

Sl. No Location & distance from City Centre

1. Peenya Industrial Area, Bangalore

2. Bangalore (location not decided)

3. Electronic City

4. Kollur

5. Udupi City

6. Chikamagalur City

7. Horanadu

8. Belur

9. Hassan City

10. Jog Falls

11. Shikaripur

12. Bijapur City

13. Badami

14. Bellary City

15. Hampi

16. Dharmasthala

17. Raichur City

18. Madikeri City

19. Gadag City

20. Chitradurga City



55

List of 20 helipads as proposed by GoK



56

List of locations for helipads suggested in addition to those proposed by GoK

Sl. No. Suggested Location

1 Gulbarga

2 Hubli

3 Hospet

4 Karwar

5 Koppal

6 Haveri

7 Chamarajnagar

8 Mandya

9 Kukke Subramanya

10 Kolar

11 Tumkur

12 Davangere

13 Dharwar

14 Belgaum



57

List of locations for helipads suggested in addition to those proposed by GoK



58

Annexure 2

Price of single engine helicopters and details of other costs

Single

Engine

Turbine

Helicopters

Base Price

New

Direct

Operating

Cost / Hr

M.A.U.W. Empty

Weight

Useful

Load

Max Sling

Load

Max

Range **

Fast Cruise HOGE

ceiling ISA

Schweizer

333

$900 000 $ 230 2550 lbs 1250 lbs 1300 lbs - 310 nm 105 knots -

Enstrom

480B

$800 000 - 3000 lbs 1695 lbs 1305 lbs 1000 lbs 350 nm 110 knots 4500 ft

Bell 206 B3 $1100 000 - 3200 lbs 1713 lbs 1487 lbs 1337 lbs 374 nm 110 knots 5300 ft

EC120 $800 000 - 3780 lbs 2127 lbs 1653 lbs 1540 lbs 393 nm 122 knots 7600 ft

MD 500E $1150 000 $ 320 3000 lbs 1481 lbs 1519 lbs 1769 lbs 239 nm 135 knots 6000 ft

MD 520N $1650 000 $ 345 3350 lbs 1585 lbs 1765 lbs 1965 lbs 200 nm 125 knots 5600 ft

MD 530F $1400 000 $ 357 3100 lbs 1591 lbs 1509 lbs 1809 lbs 206 nm 135 knots 14400 ft

AS350 B2 $1850 000 - 4960 lbs 2690 lbs 2270 lbs 2522 lbs 360 nm 133 knots 7550 ft

AS350 B3 $1950 000 - 4960 lbs 2716 lbs 2244 lbs 3086 lbs 359 nm 140 knots 11200 ft

EC130B4 $2000 000 - 5351 lbs 3020 lbs 2331 lbs 2557 lbs 329 nm 130 knots 8325 ft



59

Bell 206 L4 $2000 000 - 4450 lbs 2327 lbs 2123 lbs 1941 lbs 324 nm 110 knots 6500 ft

Bell 407 $2400 000 - 5000 lbs 2653 lbs 2347 lbs 2646 lbs 330 nm 133 knots 10450 ft

MD 600N $1700 000 $ 500 4100 lbs 2100 lbs 2000 lbs 2100 lbs 342 nm 134 knots 6000 ft

Agusta 119 $3300 000 - 5997 lbs 3152 lbs 2845 lbs - 360 nm 144 knots 10700 ft

Bell 210 $3000 000 - - - - - - - -

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