India remained the fastest growing domestic Aviation market in the world in 2017. India has 86 scheduled international airlines comprising of 5 Indian carriers and 81 foreign carriers, which ensure that India is well connected with most major countries. Revenue passenger kilometer (RPK) in domestic airline demand rose by 18.7% in 2017-18. Indian carriers reported a combined profit of $ 122 mn in 2015-16.
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)
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.
Domestic airlines carried 123.32 mn passengers during 2017-18 compared to 103.75 mn during the previous corresponding period. For the corresponding period, IndiGo held a market share of 39.7%, followed by Jet Airways (15%), SpiceJet (13.1%), Air India (12%), GoAir (8.8%), AirAsia India (4%), Vistara (3.6%) and JetLite (2.2%).
However, 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.
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.
850 carriers (jets, aircraft, helicopters) in next 5 years
$ 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
Development Fee is a levy made under section 22A of the AAI Act, 1994, inter-alia, for funding or financing the cost of upgradation, modernization or development of the airport. The levy is in the nature of a "pre-funding" charge and is consistent with ICAO policies.
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Passenger Service Fees (PSF) is levied to meet the expenditure on airport security and passenger facilities at the airports and it is not utilised to fund new development / upgradation of airports.
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As per the Govt. of India's Policy on Airport Infrastructures issued in December, 1999, no Greenfield airport will normally be allowed within a distance of 150 kms from the nearest existing airport. Where the Govt. decides to set up a new airport at such place through AAI on social economic consideration, even through the same is not economically viable, suitable grant-in-aid will be provided to AAI to cover both the initial capital cost as well as recurring losses.
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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: Sanchi Padia
By: Preet Deep Singh
By: Anusha Agarwal
