Increase in Indian carriers
850 carriers (jets, aircraft, helicopters) in next 5 years
Snapshot
Indian Aviation, flying high
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 per kilometer (RPK) in domestic air travel rose by 23.3% in 2016-17. Indian carriers reported a combined profit of $ 122 mn in 2015-16.
- India aims to become the third-largest aviation market globally by 2020
- Indian carriers plan to increase their fleet size to 800 aircraft by 2020
- 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 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
21.5%
Passenger traffic growth
13.4%
Foreign Tourist Arrival growth
2.9
Total freight traffic (MMT)
16%
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.
Domestic airlines carried 75.4 mn passengers during January-August 2017 compared to 64.4 mn during the previous corresponding period. For the corresponding period, IndiGo held a market share of 38%, followed by Jet Airways (18.3%), SpiceJet (14%), Air India (13.2%), GoAir (8%), AirAsia India (4.3%), Vistara (3.7%) and Trujet (0.5%).
However, the share of international freight traffic is much higher at 62% in comparison with 38% of domestic freight traffic.
Maintenance, Repair & Overhaul (MRO) industry is expected to grow to $ 2 bn by 2020 from $ 800 mn currently.
Growth Drivers
New airport addition
Aim to increase the number of operational airports to 250 by 2020
Infrastructure development
$ 120 bn investment in airport infrastructure
Market advantage
India’s aviation market to be 3rd largest by 2020
The significant increase in M&A activities
Etihad-Jet, Tata-Singapore Airlines, Tata-Air Asia
Regional connectivity
Boost air connectivity to smaller cities & northeastern states
Recent Announcements
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
-
Projects
11
-
Opportunity
$1.6 bn
-
Promoters
9
-
District
9
-
Private Projects
0
-
Govt. Projects
11
Gallery
May 03, 2018 Shri Jayant Sinha, Minister of State for Civil Aviation, GoI speaking at India Economic Summit 2018
Sep 07, 2018 International Aviation Summit 2018
May 21, 2014 India Focus - The aerospace, aviation, space and defence industries briefing
Jun 15, 2016 New Civil Aviation Policy of India explained in Cabinet briefing
Feb 18, 2017 Airports Authority of India and Media India Group launches Airports India Business Magazine (AIBM)
May 03, 2018 Shri Jayant Sinha, Minister of State for Civil…
Sep 07, 2018 International Aviation Summit 2018
May 21, 2014 India Focus - The aerospace, aviation, space and…
Jun 15, 2016 New Civil Aviation Policy of India explained in…
Feb 18, 2017 Airports Authority of India and Media India Group…
Major Investors
Data on Map
FAQ
Frequently
Asked Questions
What is the Development Fee (DF) and why development fee is charged by airport operators?
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.
For further information, please click here
Whether Passenger Service Fees (PSF) is levied to passengers fund development of new airports?
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.
For further information, please click here
What is the policy of Govt. of India on airport infrastructures?
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.
For further information, please click here
What is the procedure for seeking waiver of demurrage charges in import/ export?
All applications along with relevant documents for waiver of demurrage charges shall be submitted within 15 calendar days from the date the 'Passed out of charge' is issued by customs authorities. However, delay beyond 15 days for submission and upto 30 days would be considered by APD/GM(Cargo) & M(Ops) respectively with the reason for condonation of delay and local finance concurrence.
AAI has provisions for waiving demurrage charges accrued on export/import cargo, in deserving cases, as per laid down policy approved by the AAI Board. Salient features of the policy are as under:-1. Acknowledge request of waiver submitted by hand, on the spot.2. Process waiver applications within 15 days if within local powers, and 30 days in respect of cases referred to AAI Hqrs. where-ever all the relevant documents required are furnished along with applications.3. Application for Waiver/Remission of demurrage charges to be made by the consignee/shipper within 15 days after the consignment is passed “Out of Charge” or “Let Export Order” by the Customs, to the Airport Director/ G.M.(Cargo)/Dy. General Manager(Cargo), AAI, at the respective airports. It should be accompanied with legible photocopies of relevant documents such as AWB, Bill of Entry (with Customs Examination Report, Pass “out of charge” etc.), Shipping Bill, Detention Certificate of statutory authority , if any.4. The consignee/shipper can also make an Appeal to the AAI Appellate Authority for reconsideration of the order passed.Copy of waiver policy is available with In-charge of Cargo Dept., AAI and on the website of AAI.For further information please click hereWhat 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.
