PROJECT PROFILE M/S AIR TOURISM INDIA

Name of the FirmM/S AIR TOURISM INDIA

Regd. AddressWorks Constitution Date of incorporation/EstablishmentIndustry/Sector   Tourism IndustriesBusiness Activity (Product)/

Proposed to start an air taxi toursim project alongwith air ambulance service.

 Promotors Mr Irshad Ahmed S/o Mr. Ahmed.

Cost of Project

A. COST OF PROJECT (Rs. in Lacs) Sr. No. PARTICULARS   AMOUNT

1. Land and Site development 2. Building

3. Plant & Machinery 4. Miscll. Fixed Assets

5. Pre-Operative Expenses 6. Contingencies

Total B. MEANS OF FINANCE

1 Partners' Capital 2 Term Loan

Total

Project Highlights: -The project is being promoted by Mr Irshad Ahmed aged 28 years proposes to setup a Air tourism Project at Pinjore (H.R.)

INRODUCTION-BUSINESS

M/s Air Tourism India proposes to initiate an air taxi toursim project along with air ambulance service to different hospitals in rural, far flung area and to local police in emergency at Pinjore. The project cost has been estimated at around Rs ___ crore. This service is also aimed to connect district places in the state, where there is no air connectivity.

The Prop. firm shall be promoted by Mr Irshad Ahmed aged 26 years. The proposed Hotel will provide most modern facilities and amenities to the tourists with air ambulance service.

INTRODUCTION PROMOTER

The Prop. Firm shall be promoted by Mr Irshad Ahmed aged 26 years S/o Mr.Ahmed and he is having a vast experience in this field and he has worked as a pilot.

FACILITIES & SERVICES

Air Tourism project shall provide helicopter tourism, in hilly and inaccessible areas, and promotes heli-tourism. In addition to it we will also provide air ambulance service to the different hospital at different cost.

PROJECT COSTS AND MEANS OF FINANCE

The project cost has been estimated at around Rs 10.4 crores .The company currently proposed to fleet 3-4 helicopters, which includes the Dauphin SA-365N, Dauphin AS365N3, Bell 206 L4, Bell 407, AS 350 B3 and MI-172. A helicopter taxi service is all set to take off in six months, connecting state to different destinations which will include industry hubs, tourist and pilgrimage centres within a radius of 300 km.

A summary of the project cost is given below:

Cost of Project (Rs.in lacs) Particulars   Amount Land and Site developmentBuilding (New) Plant & Machinery Miscll. Fixed Assets Pre-Operative Expenses Contingencies

Total Means of Finance Prop. Capital Term Loan

Total

Land & Site Development

The new project is coming up on an area of 230 acres of the gliding ground. There are three helipads of 45m X 45m, and two separate parking spaces for the helicopters of 20 m X 20 m. A big hangar of around 16,000 sq ft for stationing helicopters under the roof has been built. The estimated cost is Rs. 2.00 lacs. (including stamp duty @8%). The detailed as per annexure –II(A) In the initial stage, the service will connect pinjore and near by area after that the number of destinations will be increased after assessing the response to the service.

LOCATIONAL ADVANTAGE

1. Locational advantage in terms of easy availability of crew .2. Better connectivity with other tourist Place.

Building

Building shall be proposed to be taken on a lease basis for hangar of helicopter and ambulance at a cost of Rs. 1.40 crores. The detailed as per annexure –II (B)

Plant & Machinery

The plant and machinery includes production section for which the detailed machinery is enclosed as per annexure III. The total cost of plant and machinery is Rs.8.58 lacs. The discussions by us with plant & equipment suppliers revealed the possibility of reduction in the cost of plant & equipment from the budgetary quotation as a result of judicious selection of suppliers of theses equipment and negotiations with the supplier when the project is actually conceived. However, as the possibility of any such discounts is based purely on the negotiations, for the purpose of financial appraisal we have taken the conservative scenario of budgetary price while taking the cost of plant and machinery.

A detailed break-up of the plant and machinery cost same is provided in the Annexure.-III

Miscellaneous Fixed Assets

The Misc Fixed assets include Kitchen Equipments, Crockey & Cutley, Linen & Beddings, electrical installations, Furniture & Fixtures, Computer at a total cost of Rs. 12.45 lacs. The details are as per annexure III(a)

Preliminary & Pre-operative Expenses

The estimated amount of Rs 3.01 lacs has been considered towards preliminary expenses & Pre-Operative Expenses like Interest during construction Period, Security & fees to HPSEB, Processing fees and Administration Charges. The details are as per annexure III(b)

Means of Finance

For the purpose of financial appraisal the estimated Project Cost of Rs 1.40 crores has been assumed to be financed through a mix of debt & equity with a debt-equity ratio of 0.65 :1. The debt quantum for the facility would be Rs. 20 lacs and equity contribution would also be Rs. 30.72 lacs

The promoters are expected to bring equity as per the project implementation schedule and after contributing the up-front equity and thereafter maintaining the financing structure. The debt is proposed to be financed by raising Rupee Term Loans (RTL). The proposed means of finance for the project is depicted in the following table:

Means of Finance Source (Rs Lacs)Equity 30.72Debt 20.00Total 50.72

Equity Financing

Based on proposed Debt Equity ratio of 0.65 :1 the Equity requirement for the project over the implementation period works out to Rs 30.72 lacs The equity will be contributed as per capital expenditure phasing in proportion of the proposed debt-equity ratio of 0.65:1

Debt Financing

The debt requirement of Rs 20.00 lacs is proposed to be met though Rupee Term Loans (RTL). The RTL is assumed to carry an interest rate of 15.50% p.a based on the current bank State Bank Advance Rate.

Project Site Location

The unit shall be located at Pinjore which is a prominent hill station always attracts tourists. Big players are also entering in this business by providing modern/European style facilities. To cope with the situation the Prop. firm has to provide such facilties.

Further, Govt. of India has announced maximum Capital Subsidy of 10% of total principal loan from designated financial institution or up to 25.00 lac for one star, Rs.50.00 lace for two star and Rs.75.00 lac to three star hotel w.e.f. 1 st April, 2002 to March, 07. Govt. has also announced Tax Holiday exemption for 10 years. The Tourism sector has been included as a category under this Thrust Sector Industries. These exemptions are available for Hotels in special zone only.

Power:

We have estimated the power requirement of the Hotel at 50 kW. As the load in hotel industry is dependent on the usage of rooms,Cottage, conference hall, discotheques etc. and all of them are not running simultaneously, the load factor is usually at lower side to the tune of 0.50. The same has been assume while calculating the power bill and estimated Annual Electricity bill has been worked out at Rs.2.77 lacs at 100% Capacity Utilization. The details are as per annexure VI

Administration & General Staff

Accounts office will maintain the accounts related to salaries, leave, revenue, expenses etc. Accountant should have knowledge of accounting rules and packages like Tally etc. He will work directly under the Managing Director. Additionally, one purchase officer will be responsible for purchase of raw material and consumables, etc.

The general staff required for the smooth operation of the various departments will include clerical & secretarial staff, security staff, peons, drivers, etc.The overall manpower requirement for the unit has been provided in the Annexure-V.

Indian Tourism : An Overview

Tourism will expand greatly in future mainly due to the revolution that is taking place on both the demand and supply side. The Changing population structure, improvement in living standard, more disposable income, fewer working hours and long leisure time, better educated people, ageing population and more curious youth in the developed as well as developing countries, all will fuel the tourism industry growth.The arrival of a large number of customers, better educated and more sophisticated, will compel the tourist industry to launch new products and brands and re-invents traditional markets. The established traditional destinations founded on sun-sea-sand products will have to re-engineer their products. They must diversify and improve the criteria for destinations and qualities of their traditional offers. Alongside beach tourism, the tourism sector will register a steady development of new products based on natural resources promoting the rural business, leisure and art and culture. Thus the study of new markets and emerging markets and necessity of diversified products are the basis of our strategy, which can enhance and sustain, existing and capture new markets.

According to the Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum, India is ranked 11th in the Asia- Pacific region and 62nd overall in a list of 133 assessed countries in 2008, up three places since 2007. In terms of travel, India stands 9 th in the index of relative cost of access (ticket taxes and airport charges) to international air transport services, having almost the lowest costs in the world.

Also according to the report, India has been rated as well for its natural resources (ranked 14th) and cultural resources (24th), with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also has quite a good air transport network (ranked 37th), particularly given the county’s stage of development, and a reasonable ground transport infrastructure (ranked 49 th). India is ranked 7th in terms of number of World Heritage cultural sites, according to a UNESCO report (2008).

India is ranked 1st with regard to tourism fair attendance. Also, according to the International Congress and Convention Association, India is rated 33rd in terms of number of international fairs and exhibitions held in the country annually (average for 2006-07).

The World Travel and Tourism Report for 2009 for 180 countries worldwide also ranks the Indian Travel and Tourism economy 14th in absolute size worldwide, 144th in relative contribution to national economies and 5th in long-term (10 years) growth. The contribution of travel and tourism to gross domestic product (GDP) is expected to be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$ 187.3 billion by 2019.

HELICOPTER TOURISM IN INDIA

Helicopters have the advantage of linking inaccessible areas particularly in the hills and ensuring comfortable and short journeys over difficult terrain, which would take a long time by road. This sector is being expanding day by day with the increase awareness among masses about utility of helicopters for tourism purposes in the form of convenience, time saving etc. The usage of helicopter by the general public in the tourism industry is growing, especially with the regular passenger services connecting important tourist and religious places. This also caters to the requirement of large section of people who find it difficult to otherwise commute either due to health or age considerations.

AIR TAXI SERVICE

With the Haryana government’s to start air taxi services to ferry tourists to different tourist sites scattered across the state. We are planning to launch air taxi service by using Bell Commercial helicopters to link various Tourist sites scattered across pinjore. The system is expected to start from the next year. What actually encouraged us in starting this project was owing to the increasing number of foreigners visiting the state and the inconveniences being faced by them in reaching the tourist sites.For this purpose we have selected two helicopters suiting this particular range.

The Bell 407- Air SupremacyThe 206L4 Longranger IV – Ready whenever you want

THE BELL 407Chrome-plated exhaust pipes not yet standard. The full integration of speed, performance and maneuverability. Reliable beyond measure.Outfitted with a spacious cabin that seat up to seven, configurable for an array to tasks and payloads. Composite dynamic components and unmatched rotor authority for an incredibly smooth ride in virtually all conditions. The 407 is the first choice for ensuring performance.

407 HIGHLIGHTS

1. Superior performance with the best speed, payload and range available in its class.2. Superior power to weight ratio.3. Exceptional passenger comfort with the smoothest ride in its class and wide- open

club seating for unparalleled visibility.4. Pilot- friendly attributes such as a twist grip throttle on the collective and a FADEC for

the engine.5. The high performance, combat proven, composite dynamic components of the OH-

58D Kiowa Warrior for unmatched handling.

Increased power and decreased noise are no longer incompatible. The 407’s sophisticated engine and composite rotor ensure a smooth ride and drastically quieter operation.

THE BELL 206L-4 LONGRANGER IV

The Longranger IV is a remarkable combination of power, room and range. Innovative doors and a spacious cabin make the Longranger IV ideal for corporate, EMT, utility or law enforcement. And a better power margin means you’re flying higher and further.

Longranger IV Highlights

1. The patended Nodal Beam suspension system for the smoothest ride available and club passenger seating for face-to-face conversation.

2. Wide opening doors and a roomy cabin ideal for cargo hauling and law enforcement missions.

3. A simple high inertia two-bladed rotor system for superior safety and excellent autorotation characteristics.

4. An overall best value offering, this simple and durable design which incorporate a powerful and reliable 650 horsepower engine makes the 206L-4 the best 7-place light helicopter available foe the money.

5. Lowest operating costs in class6. Superior autorotation characteristics 7. Robust cabin structure8. Collective mounted throttle9. Rupture resistant fuel cells10. Shoulder harnesses

Inside and out, the Longranger IV represents leading edge design. Whether you’re a CEO who wants to get business done in the air, on an EMT who wants to save cabin, a high visibility cockpit, and a high performance Rolls- Royce engine with power to spare, even in hot weather. You name the time and the place. The Longranger IV is ready to take you there.

SERVICE OF AIR AMBULANCE IN INDIA: REVIEW

Saving time is the first step in saving lives. Air Ambulance Services are used when ground transport could endanger a patient's life. They are also indispensable when the patient is in a

remote area and time is critical. Our service shall equip each of its hospitals with emergency air ambulance services.

Air Ambulance transportation in India is the safest, most cost effective, medical transport. An aircraft used for emergency medical assistance in situations where either a traditional ambulance cannot reach the scene easily or quickly enough, or the patient needs to be transported over a distance or terrain that makes air transportation the most practical transport. Air ambulance crews in India are supplied with equipment that enables them to provide medical treatment to a critically injured or ill patient. Common equipment for air ambulances includes ventilators, medication, an ECG and monitoring unit, CPR equipment, and stretchers.

A medical crew that has the everyday job of transporting patients in ambulances built inside of airplanes. Flight paramedics, flight nurses, and specialized physicians( “ flying doctors ”) routinely save lives within the India and around the world. This is a look into their work, as well as a look into the families and patients who need to be transported in air ambulances. We often see med-evac teams traveling by helicopter. However, the mode of transport may be ground, air escort, jet or even a Cessna. The staffing, medical equipment and mode are all dependent on your medical condition and needs. The air ambulance company can suggest several medically appropriate alternatives to meet your needs. As with many innovations in Emergency Medical Service (EMS), the concept of transporting the injured by aircraft has its origins in the military, and the concept of using aircraft as ambulances is almost as old as powered flight itself. Air medical transport likely first occurred in 1870 during the Siege of Paris when 160 wounded French soldiers were transported by hot-air balloon to France. During the First World War air ambulances were tested by various military organizations.

Multiple Purpose of air ambulance service in India:

In some jurisdictions, cost is a major consideration, and the presence of dedicated air ambulances is simply not practical. In these cases, the aircraft may be operated by another government or quasi-government agency and made available to EMS for air ambulance service when required. In southern Queensland, Australia, the helicopter that responds as an air ambulance is actually operated by the local hydroelectric utility, with the Queensland Ambulance Service or New South Wales Ambulance Service providing paramedics, as required. In some cases, the flight paramedic will be provided to the aircraft operator by local EMS on an as-needed basis. In other cases, the paramedic will staff the aircraft full-time, but will have a dual function. In the case of the Maryland State Police, for example, the flight paramedic is a serving State Trooper whose job is to act as the Observer Officer on a police helicopter when not required for medical emergencies.

Free-for-service of air ambulance in India:

In many cases, local jurisdictions do not charge for air ambulance service, particularly for emergency calls. This is not, however, universally true. The cost of providing air ambulance services is considerable, and many such services, including government-run ones, charge for service. There are certain groups which, in particular, charge for service. These tend to be privately-owned companies, such as aircraft charter companies, hospitals, and some private-for-profit EMS systems. Within the European Union, almost all air ambulance service is on a fee-for-service basis in India, except for those systems which operate by private subscription. Many jurisdictions have a mix of operation types. Fee-for-service operators are generally responsible for their own organization, but may have to meet government licensing requirements. Rega of Switzerland is an example of such a service.

Medical staffing in India:

The makeup of the medical crew staffing an air ambulance varies depending on country, area, service provider, and type of air ambulance. In services operating under the Anglo-American model of service delivery, the helicopter is most likely to be used to transport patients, and the crew may consist of Emergency Medical Technicians, Paramedics, flight nurses, a Respiratory Therapist, or in some cases, a physician. Services with a primary focus on critical care transport are more likely to be staffed by physicians and nurses. In the Franco-German model, the aircraft is much more likely to be used as a method of delivering high-level support to ground-based EMS. In these cases, the crew generally consists of a physician, often a surgeon, anesthetist, trauma specialist or similar specialty, accompanied by a specially-trained advance care paramedic or nurse. In these cases, the object is the rapid delivery of definitive care, occasionally even performing emergency surgical procedures in the field, with the eventual transport of the patient being accomplished by ground ambulance, not the helicopter.

Standards of air ambulance service are very varied and you need to ensure that the company that you hire has high standards in all areas of the business. You should ensure that the medical staff on board of the air ambulance is of the highest quality, that they have a qualified pilot, and that the aircraft they are using is suitable to your needs and that it is capable of traveling in any weather conditions. You should ask questions about their air craft, what types of medical professionals they have on staff and what their credentials are. These types of questions can help you prevent costly mistakes by hiring a air ambulance company in India that isn't qualified. An air ambulance service in India can safely transport you from a hospital abroad to a hospital in your town. Your medical support team coordinates bedside to bedside service ensuring your safe transport back home. The medical team can also provide medical assistance while traveling. When planning your travel abroad, include the number of an air ambulance company in your emergency contacts. If you are injured or become ill while on vacation, air ambulance teams can safely and quickly arrange to transport you back home.

Financial Statements Cost of Production and Profitability Estimates The cost of production and profitiablity estimates for the overall project are as per annexure-A Assumptions underlying the estimates of cost of production & profitability. The detail

are provided as per annexure-B Cash Flow Statements The detail are provided as per annexure –C which indicates healthy ways and means of the

concerns. Debt Service Coverage Ratio

Firm is proposed to taken a loan of Rs.20 lacs with a monthly instalment of Rs.0.167 lacs for 120 months at a 15.5% rate of interest p.a.The detail are provided as per annexure –E

Break Even Point calculated at 52.40% . The detail are provided as per annexure –F attached.

Swot analysis

Strengths:

Very good and peaceful location

Situated on Beautiful Lake, Hills which is major tourist attraction

Good services toward customer

Rates are much low as compared to their customer

Weakness:

Very far from airport, railway station and from the main city

No major tourist spot nearby

Opportunity:

As there is boon in tourisms so opportunity of capturing the market.

Support from Himachal government tourisms department

Tourism is a labour intensive industry and creates many job opportunities

Threat

Major competition from hotels & other Resorts.