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%.
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
Passenger traffic growth
Foreign Tourist Arrival growth
Total freight traffic (MMT)
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
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.
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.
Number of airplanes is expected to grow to 1,100 by 2027
$ 3 bn investments in green-field airports – Navi Mumbai and Goa
Airport Authority of India to spend $ 3 bn on non-metro projects over 2016-2020
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.
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 Proposal
The Ministry of Civil Aviation (MoCA), Government of India released the National Civil Aviation Policy 2016 (NCAP 2016). One of the objectives of NCAP 2016 is to ’enhance regional connectivity through fiscal support and infrastructure development’. The primary objective of RCS is to facilitate/stimulate regional air connectivity by making it affordable.
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 development
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.
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Sanchi Padia
By: Preet Deep Singh
By: Anusha Agarwal
