Increase in Indian carriers
Number of airplanes is expected to grow to 1,100 by 2027
This page has been last updated on - Nov 06, 2019
Snapshot
Indian Aviation, flying high
India is considered to be the third-largest domestic Civil Aviation market in the world.
India has 91 international carriers comprising of 5 Indian carriers and 86 foreign carriers, which ensure that India is well connected with most major countries. India has connectivity with 59 countries through 344 routes. Revenue passenger kilometre (RPK) in domestic airline demand growth of 18.6% in 2018 was three times the global RPK growth of 6.5%.
- India aims to become the third-largest aviation market globally by 2024
- Indian carriers plan to increase their fleet size to 1,100 aircraft by 2027
- Freight traffic on Indian airports is expected to cross 11.4 MT by 2032
- Government agencies projects requirement of around 250 brownfield and green-field airports by 2020
- India is the fastest-growing aviation market and is expected to cater to 520 mn passengers by 2037
- India has been projected to be the second-fastest-growing country in the world for passenger traffic by the Airports Council International (ACI) in its traffic forecasts between 2017-40.
Up to 100% FDI is permitted in Non-scheduled air transport services under the automatic route.
Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic route.
Up to 100% FDI is permitted in MRO for maintenance and repair organizations; flying training institutes; and technical training institutes under the automatic route.
Up to 100% FDI is permitted in Ground Handling Services subject to sectoral regulations & security clearance under the automatic route.
For further details, please refer FDI Policy
11.0 %
Passenger traffic growth
15.9 %
Foreign Tourist Arrival growth
3.6 MMT
Total freight traffic (MMT)
14.4 %
Domestic aircraft movement growth
Ninth largest Civil Aviation market in the world
Fastest growing domestic air market in the world
Aviation sector in India currently supports 8 mn jobs
Industry Scenario
The Aviation sector in India currently contributes $72 bn to GDP.
India has 464 airports and airstrips, of which 125 airports are owned by Airport Authority of India (AAI). These 125 AAI airports manage close to 78% of domestic passenger traffic and 22% of international passenger traffic.
Passenger traffic in India stood at 316.51 mn during April 2018 - Feb 2019. Out of which domestic passenger traffic stood at 252.92 mn while international traffic stood at 63.59 mn. The aircraft movement, passenger traffic and freight traffic increased by 4.9%, 4.5% and 3.1% respectively in February 2019 viz-a-viz February 2018, across all Indian airports taken together.
However, the share of international cargo traffic is much higher at 68.5% in comparison with 31.5% of domestic cargo traffic.
Maintenance, Repair & Overhaul (MRO) industry is expected to grow to $1.2 bn by 2020 from $950 mn currently.
Growth Drivers
New airport addition
Aim to increase the number of operational airports to 250 by 2020Infrastructure development
$ 120 bn investment in airport infrastructureMarket advantage
India’s aviation market to become 3rd largest by 2024The significant increase in M&A activities
Etihad-Jet, Tata-Singapore Airlines, Tata-Air AsiaRegional connectivity
Boost air connectivity to smaller cities & northeastern states
Recent Announcements
AAI to Spend 19K cr on Airports Upgrade
IGI Airport in Delhi will soon sport the country's most technologically advanced and highest Air Traffic Control (ATC) tower, which will enhance the safety and the efficiency of air transport management services over the city's sky.
Mahindra Aerospace and Canada’s Viking Air have signed a memorandum of understanding to form a strategic alliance for making smaller aircraft to support regional air connectivity in India.
Airbus, leading European aircraft manufacturer, plans to invest $ 40 mn to set up a pilot and maintenance training center in New Delhi, which will be operational by the end of 2017.
GVK Power & Infrastructure Ltd., which operates the existing airports in Mumbai and Bangalore, has won the right to build Mumbai’s second airport in Navi Mumbai, which will require an investment of $ 2.4 bn to build the airport with a capacity to handle 10 mn passengers annually in the first phase, expected to be operational by 2019 and 60 mn passengers a year by 2030.
Public-Private Partnerships (PPP)
$ 3 bn investments in green-field airports – Navi Mumbai and Goa
Focus on airport modernization
Airport Authority of India to spend $ 3 bn on non-metro projects over 2016-2020
Investible Projects
Investment Opportunities in Aviation
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Projects
11
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Opportunity
$3.73 bn
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Promoters
9
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District
8
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Private Projects
0
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Govt. Projects
11
Major Investors
Data on Map
FAQ
Frequently
Asked Questions
What are the clauses under performance guarantee?
Some of the main clauses are as follows:
a) Airline operator must enter into a three year contract with the implementing agency.
b) Submit a performance guarantee fees of 5% of the total VGF amount.
c) Additional guarantee required for non-operational airports.What are the proposal submission requirements of an airline / helicopter operator under the RCS?
As part of the the proposal submission, an applicant shall be required to submit information under the following categories, as may be specified in detail from time to time:
a) Information about the Applicant
b) Technical Proposal
c) Financial ProposalWhat is Regional Connectivity Scheme (RCS)?
Regional Connectivity Scheme aims to make flying affordable for the masses, to promote tourism, increase employment and promote balanced regional growth. It also intends to put life into un-served and under-served airports.
For more information, click here.
What are the major objective under National Policy on Civil Aviation 2016?
Major objectives under National Policy on Civil Aviation:
i) Establish an integrated eco-system which will lead to significant growth of civil aviation sector, which in turn would promote tourism, increase employment and lead to a balanced regional growth.
ii) Ensure safety, security and sustainability of aviation sector through the use of technology and effective monitoring.
iii) Enhance regional connectivity through fiscal support and infrastructure development.
iv) Enhance ease of doing business through deregulation, simplified procedures and e-governance.
v) Promote the entire aviation sector chain in a harmonised manner covering cargo, MRO, general aviation, aerospace manufacturing and skill developmentWhat is the procedure to carry out cargo services related transactions electronically with AAI?
Any exporter/importer/Customs House Agents/Airlines etc. who wish to transact electronically with AAI, would be mandatory required to get register with AAI at http://aaiclas-ecom.org Registration is mandatory for Message Exchange activities also.
Registration Process:
User has to fill up the physical registration form along with relevant documents and submit to Airports Authority of India (AAI). AAI would ascertain the correctness of the details submitted. Users are requested to fill valid E-Mail address and Phone Number(s) in Registration form to enable AAI to perform further communications regarding User ID and Password allocation. Users are requested to immediately change the password(s) assigned by AAI.
Non Registered Users are not restricted from functionalities pertaining to Consignment Status, Charges Calculation Estimate Sheet and Cargo Procedures. Same features are available for registered users. In addition, Registered Users enjoy the privilege of accessing functionalities related to Printing of Charge related Documents, Payment transactions and Pre- Deposit account related statements.For more details please refer the link.
Stakeholders
Government Ministry & Department
Industry Association
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By: Invest India29 July, 06:47 PM
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By: Invest India
26 June, 03:56 PM
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