Professional Documents
Culture Documents
Aviation Report April 2018
Aviation Report April 2018
Executive Summary………………….….…….3
Advantage India……………………...….……..4
Growth Drivers…………………….................22
Opportunities…….……….......………………33
Case Studies…………….....…….……..……35
Industry Associations……………....…...…...38
Useful Information……….......……………….40
EXECUTIVE SUMMARY
India is set to become 3rd largest aviation market by 2020. Air passenger traffic in India (million)
By 2020, passenger traffic at Indian airports is expected to increase
500 CAGR 16.7%
to 421 million from 264.99 million in 2016-17.
400
421.00
300
200 264.99
100
0
FY17 2020F
Travel and tourism to contribute US$ 423.7 billion to GDP by 2026. Travel and Tourism industry (US$ billion)
The travel and tourism industry is forecast to grow at a CAGR of 6.66
250 CAGR 6.66%
per cent to US$ 423.7 billion in 2026 from US$ 100 billion in 2017.
200 228
150
100
50 100
0
2017 2020F
Business and leisure travel to boost growth. Business and Leisure Travel Spending (US$ billion)
Spending on business travel is estimated to increase to US$ 39.88
300
billion in 2026 from US$ 10.26 billion in 2017, while on leisure travel
is forecast to rise to US$ 203.5 billion in 2026 from US$ 181.65 200
billion in 2017. 203.50
181.65
100 39.88
10.26
0
2017E 2026F
Leisure Travel Business Travel
Source: World Travel and Tourism Council, Airport Authority of India
ADVANTAGE INDIA
ADVANTAGE INDIA
Rising working group and widening middle class Growth in aviation accentuating demand for MRO facilities
demography is expected to boost demand
Expenditure in MRO accounts for 13-15 per cent of total
India plans to increase the number of airports to 250 revenues; it is the second-highest expense after fuel cost
by 2030 to cater to growing leisure and business
By 2020, the MRO industry is likely to grow over
travel
US$ 1.5 billion from US$ 0.5 billion currently
Country will become the third largest aviation
market in terms of passengers by 2026.
ADVANTAGE
INDIA
Investments totalling US$ 12.1 billion in The government has been encouraging
the airport sector are to be made private sector participation
during the 12th Five Year Plan (2012-
Foreign investment up to 49 per cent is
17); of these, private investments are
allowed under automatic route in scheduled
expected to total US$ 9.3 billion
air transport service, regional air transport
Growing private sector participation service and domestic scheduled
through the Public - Private Partnership passenger airline.
(PPP) route
Notes: FDI – Foreign Direct Investment, MRO – Maintenance, Repair and Overhaul; FY – Indian Financial Year (April – March)
Source: Ministry of Civil Aviation, MRO India
MARKET OVERVIEW
EVOLUTION OF THE INDIAN AVIATION SECTOR
India is the 9th largest civil aviation market in the world, In FY17, domestic passenger traffic witnessed a growth rate of 21.5 per cent
In FY17, airports in India witnessed a domestic passenger traffic of about 205 million people.
Investments worth US$ 6 billion are expected in the country's airport sector in 5 years
India’s civil aviation market is set to become the world’s 3rd* largest by 2020 and expected to be the largest by 2030
Non-scheduled airlines in
39 112 (FY17)
operation
Note: * India ranks after the US and China, FY – Indian Financial Year (April – March), mn km – Million Kilometers, FY18* - as of March 2018
Source: Airports Authority of India, Ministry of Statistics and Programme Implementation, Ministry of Civil Aviation
Domestic airports
Non-operational (9)
(66)
120%
Airports Authority of India (AAI) was –
100% Activity in AAI airports -
80% 78% 38% shares (%) – FY17 • Established in 1994 under the
80% Airports Authority Act
Note: AAI – Airports Authority of India, JV – Joint Venture, FY – Indian Financial Year (April – March)
Source: Airports Authority of India
SpiceJet
Market share: 12.7 per cent
Passenger load traffic: 95.0 per cent
GoAir
Market share: 9.0 per cent
Passenger load traffic: 88.0 per cent
Jet Airways
Market share: 15.0 per cent
Passenger load traffic: 86.2 per cent
Jetlite
Market share: 1.6 per cent
Passenger load traffic: 87.1 per cent
Air India
Market share: 13.4 per cent
Passenger load traffic: 83.6 per cent
Indigo
Market share: 39.5 per cent
Passenger load traffic: 89.0 per cent
Note: Market Share as of February’18 and Load Data for the month of March’18
Source: Directorate General of Civil Aviation
Delhi
Passenger traffic handled in
FY16: 48 million;
FY17: 57.7 million
1FY 18: 59.64 million
Kolkata
Passenger traffic handled in
FY16: 12.4 million;
FY17: 14.35 million
1FY18: 18.05 million
Mumbai
Passenger traffic handled in;
FY16: 41.7 million;
FY17: 45.2 million
1FY 18: 44.23 million Hyderabad
Passenger traffic handled in
FY16: 12.4 million
FY17: 15.24 million
1FY 18: 16.47 million
Bengaluru
Passenger traffic handled in
FY16: 19 million; Chennai
FY17: 22 million Passenger traffic handled in FY16:
1FY 18: 24.36 million
15.2 million;
FY17: 16.7 million
1FY 18: 18.51 million
Witnessing a growth of 18.5 per cent over the previous year, total Visakhapatnam
Passenger
porttraffic
traffic(million)
(million tonnes)
passenger traffic stood at a 264.97 million in FY17, which was
recorded at 223.62 million in FY16 in India.
300 2CAGR 12.39%
Growth in passenger traffic has been strong since the new
280.24
millennium, especially with rising incomes and low-cost aviation;
264.97
during FY06-17, passenger traffic grew at a CAGR of 12.39 per cent 250
in the country.
India’s passenger traffic grew 15.80 per cent y-o-y to 280.24 million
223.62
200
during April-February 2017-18.
190.10
By 2036, India is estimated to have 480 million flyers, which will be
169.03
more than that of Japan ( just under 225 million) and Germany ( just
162.30
150
159.30
over 200 million) combined.
143.43
India has become the third largest domestic aviation market in the
123.73
116.89
100
108.88
world and is expected to overtake UK to become the third largest air
96.38
passenger* market by 2025.
73.35
50
1
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April – March), 1April 2017 to February 2018, 2CAGR is till FY17, *Air passenger – Domestic + International
Source: Association of Private Airport Operator, Airports Authority of India
206
passenger traffic witnessed growth at a rate of 21.5 per cent in FY17, 30%
200
169
as against 21.24 per cent in FY16. 20%
139
150
71
122
122
10%
117
International passenger traffic registered growth at a CAGR of 9.27
106
100
51
89
0%
87
77
per cent over FY06-17. 50 -10%
22 26 30 32 34 38 41 43 47 51 55 59
During FY17, international passenger traffic increased by 8.5 per 0 -20%
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
cent.
International Domestic
Growth-International Growth-Domestic
300 293
11th Plan Period
10th Plan Period 206
200
100 26 122
71
14 26 41 59 76
0
FY02 FY07 FY12 FY17 FY20E
Domestic passenger throughput Domestic (million)
International passenger throughput international (million)
Notes: YoY – Year on Year, FY – Indian Financial Year (April – March)
Source: Airports Authority of India, Ministry of Civil Aviation
Total freight traffic registered a CAGR of 7.08 per cent over FY06-17 International
Visakhapatnam
freight traffic port
was traffic
61.3 per
(million
cent oftonnes)
the total in 2016
During FY06-17, domestic freight traffic increased at a CAGR of 7.95
3,500
per cent, while international freight traffic grew at a CAGR of 6.58 2CAGR 7.08%
per cent during the same period.
3,000
In FY17, domestic freight traffic stood at 1,123.18 million tonnes,
1,106
1,123
while international freight traffic was at 1,855.06 million tonnes.
1,046
2,500
During FY17, domestic freight traffic increased at 7.39 per cent while
986
international freight traffic increased at 11.86 per cent in comparison
852
812
840
784
with FY16. 2,000
689
1,949
By 2023, total freight traffic is expected to touch 4.14 million tonnes
1,855
568
552
exhibiting growth at a CAGR of 7.27 per cent between FY2016 and
1,658
1,500
530
1,542
1,496
1,468
FY23. In addition, international freight traffic is expected to grow at a
1,440
1,407
484
1,271
CAGR of 7.13 per cent while domestic freight traffic is expected to
1,149
1,147
1,000
grow at a CAGR 7.50 per cent between FY2016 and FY23.
1,023
920
India’s domestic and international freight traffic grew 8.0 per cent y-
500
o-y and 17.2 per cent y-o-y to 1.106 million tonnes and 1.949 million
tonnes during April-February 2017-18, respectively.
0
1
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
International( '000 Tonnes) Domestic ('000 Tonnes)
Note: 1From April to February 2018, 2CAGR is calculated as sum of international and domestic traffic till FY17
Source: Airports Authority of India
3.05
Airports across the globe are planning on increasing their spending
on new technology to keep up with surging passenger traffic, which
2.70
2.68
2.50
is expected to double to 370 million by 2020. The anticipated double
2.53
digit growth would make India as the world’s 3rd largest aviation
2.35
2.28
2.28
2.19
market by 2020. 2.00
1.96
Fliers would soon be able to use biometric details for security checks
1.72
at airports after good feedback from a pilot project.
1.70
1.50
1.55
India’s total freight traffic grew 13.7 per cent y-o-y to 3.05 million
1.40
tonnes during April-February 2017-18.
1.00
0.50
0.00
1
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Notes: FY – Indian Financial Year (April – March), 1From April to February 2018
Source: Airports Authority of India
In FY17, total aircraft movement increased at a YoY of 3.91 per cent, 2.50 25%
as compared to FY16.
2.11
2.00
India’s total aircraft movement grew 13.00 per cent y-o-y to 2.11
million tonnes during April-February 2017-18. 15%
1.86
1.79
In May 2017, Air India has decided to launch flights to three new 1.50
1.60
1.54
1.54
destinations in the U.S., Stockholm, Nairobi and Tel Aviv in 2017. 10%
1.48
1.39
1.33
1.31
1.31
5%
1.00
1.08
0%
0.50
-5%
0.00 -10%
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18*
Aircraft movement Growth in Aircraft movement
Notes: CAGR – Compound Annual Growth Rate FY – Indian Financial Year (April – March) YoY – Year on Year, FY18* - up to February 2018
Source: Association of Private Airport Operators, Airports Authority of India
1,711
2,000
India’s domestic and international aircraft movements grew 13.90 per
cent y-o-y and 9.50 per cent y-o-y to 1.711 million and 0.400 million 15%
1,502
1,481
during April-February 2017-18, respectively.
1,260
1,500
1,235
1,201
10%
1,165
1,094
1,049
1,059
1,036
5%
1,000
862
0%
500
-5%
400
375
365
346
336
314
309
300
282
FY09 270
FY08 249
FY07 216
0 -10%
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18*
International ('000) Domestic ('000)
Growth-International(%) Growth-Domestic(%)
Notes: YoY – Year on Year; FY – Indian Financial Year (April – March), CAGR – Compound Annual Growth Rate, FY18* - up to February 2018
Source: Association of Private Airport Operators
Until 2013, AAI was the only major player involved in developing and upgrading airports in India
Post liberalisation, private sector participation in the sector has been increasing
Government of India has given ‘in-principle’ approval to 19 airports out of which 7 are going to be developed on a PPP basis with an investment of
Rs 27,000 crore (US$ 41.89 billion).
Threat of Substitutes
High - Bargaining power of suppliers High - Competition among major Low - Bargaining power of customers
remain high as there are only few fuel players is very high, especially in remains low as the demand for low
and aircraft suppliers LCC’s (Low cost carrier) section cost air travel is quite high
Talent pool of pilots, engineers and because the airlines compete for the The costs of switching airplanes and
other staff is also limited middle income group customers and services offered hardly differ with
passengers of air-conditioning each other
segment of railways. This group has
low brand loyalty and is highly price
sensitive
RECENT TRENDS
AND STRATEGIES
NOTABLE TRENDS IN THE AIRPORTS SECTOR
Currently, five international airports have been completed successfully under PPP mode
Rising private
Greater use of non- Rising business activity leading to higher demand for non-scheduled airlines
participation and
scheduled
Investmentsairlines As of February 2018, there are 111 operators (NSOP)
Indian airports are emulating the SEZ-aerotropolis model to enhance revenues; focus on revenues from
retail, advertising, vehicle parking, etc.
Risingon
Focus private
non-
participation and With the initiative of displaying “Art for a cause,” Nagpur airport became India’s 1st airport to take up the
aeronautical
Investmentsrevenue cause of empowering the girl child in a unique way.
Absence of complementary meals in low-cost airlines have boosted the F&B retail segment at airports
Notes: FY – Indian Financial Year (April – March), NSOP – Non Schedule Operators Permit
Source: DGCA
Expansion of CAPA; further, rise of LCC’s was also supported by the exit of Kingfisher, which is on the verge of
Rising private insolvency
Expansion
participation and Capacity will also increase with new terminals coming up in Mumbai, Bengaluru, Chennai and Kolkata
Investments Indian carriers to double their fleet capacity by 2020 to around 800 aircrafts
Indian LCC’S are looking forward to increase their ancillary services, without tampering their business models. This
includes services like lounge access, priority boarding, customer loyalty memberships and customer meals
Rising private
The AAI has allowed the BRTS buses to foray in the airport premises in Surat. The initiative is to allow the passengers
Ancillary services
participation and to reach airports on time and allow smoother transit.
Investments In April 2017, Indigo Airlines entered the record books by registering a record breaking 900 flights a day, most by any
Indian airline.
Indian LCC’s are looking forward to increase their low cost products on routes which will take up to four hours (shorter
Rising private international routes)
Increasing operations
participation and This will allow deleveraging of domestic fleet, increasing aircraft utilisation and improving commercial performance
Investments Chennai, with its strategic location in South India has a strong potential to become a hub, with connecting flights to
Gulf and across South East Asia
Under Union Budget 2018-19, the government introduced NextGen Airports for Bharat (NABH)-Nirman Scheme
which aims a five-fold increase in India’s airport capacity to handle a billion trips per year.
Rising private In June 2017, the government announced that it is planning to allow relaxations under the UDAN scheme hoping to
Government’s push
participation and increase air connectivity to undeserved routes. The airlines operators will be allowed to bid for a route connecting an
Investments airport which is underserved, and to allow operators to bid for a route which are separated by less than 150 kms.
In February 2018, the Prime Minister of India launched the construction of Navi Mumbai airport which is expected to
be built at a cost of US$ 2.58 billion. The first phase of the airport will be completed by end of 2019.
GROWTH DRIVERS
STRONG DEMAND AND POLICY SUPPORT DRIVING
INVESTMENTS
Growing
Growingdemand
demand Policy support
Strong Increasing investments
government
support
The share of travel and tourism in India’s GDP was depicted to be Visakhapatnam
Travel and tourism
portspending
traffic (million
(US$ tonnes)
billion)
9.6 per cent in 2017E; and is expected to grow at a CAGR of 7.2 per
cent per annum between 2017E-2027
200.0
Overall, leisure travel and tourism spending inclined at a CAGR of
180.0
15.74 per cent between 2007-17E.
181.7
Emergence of business hubs like Mumbai (Finance), Bengaluru (IT), 160.0
Chennai (IT), Delhi (Manufacturing, IT) is likely to boost business
140.0
travel as well.
Leisure travel spending grew to US$ 181.65 billion in 2017E from 120.0
96.2
96.0
90.2
80.0
77.9
69.3
68.7
60.0
60.9
48.7
40.0
46.2
42.1
17.8
10.3
20.0
26.4
25.5
22.1
24.4
18.8
22.3
20.8
19.1
19.1
0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
490.74
489.32
459.67
and US$ 459.67 billion during 2017-18.
450.20
447.52
400
Growing trade augurs well for airports as they handle about 30 per
380.60
380.38
cent of India’s total trade (by value)
369.77
300
314.41
309.56
305.96
303.69
302.84
300.40
FDI in aviation and
288.37
274.65
Increasing airline
262.03
liberalised aviation
249.82
operators
policy 200
185.29
178.75
Higher aircraft 100
movement
0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Growth in passenger Exports Imports
Rise in freight traffic
traffic
Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April – March)
Source: Ministry of Commerce
AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and
Rising private constructing 15 new ones.
Greater focus on
participation and
infrastructure The Indian government is planning to invest US$ 1.83 billion for development of airport infrastructure along
Investments
with aviation navigation services by 2026.
With the opening of the airport sector to private participation, six airports across major cities are being
developed under the PPP model
Currently 60 per cent of airport traffic is handled under the PPP model, while the remaining 40 per cent is
managed by the AAI
Liberalisation, Open Increased traffic rights under bilateral agreements with foreign countries
Rising private
Sky Policy
participation and India signed its 1st open skies agreement with Greece
Investments In May 2017, India and Spain signed an MoU for cooperation in civil aviation industry. The MOU would spur
greater trade, investment, tourism and cultural exchanges between both the countries.
In April 2017, Brussels Airlines launched its service from Brussels to Mumbai, its 1st flight to Asia. The launch
is a part of Lufthansa’s group strategy to expand its business in India.
The GOI has allowed 100 per cent FDI under automatic route for greenfield projects, whereas, 74 per cent FDI
is allowed under automatic route for brownfield projects.
100 per cent FDI is allowed under automatic route in scheduled air transport service, regional air transport
Encouragement to service and domestic scheduled passenger airline. FDI over 49 per cent would require government approval.
Rising private
FDI
participation and Approval of 49 per cent FDI in aviation for foreign carriers.
Investments
FDI inflows in India’s air transport sector (including air freight) reached US$ 1,608.51 million during April 2000
and December 2017.
Notes: India currently has bilateral air service agreements with 104 countries. These include Brazil, 27 members of the EU, and China. In 2008 traffic rights were been enhanced with
Mexico, Saudi Arabia, Netherlands, Qatar, Iran, Japan and Turkey, FDI – Foreign Direct Investment, GOI – Government of India
Rising private 100 per cent tax exemption for airport projects for a period of 10 years
Taxes
participation
and duties
and Indian aircraft Manufacture, Repair and Overhaul (MRO) service providers are exempted completely from
Investments customs and countervailing duties
In the Union Budget for FY18, Government of India, has earmarked US$ 100.4 million for Air India Limited.
Also, an amount of US$ 11.32 million has been allocated to Airports Authority of India for 2018-19.
The government has allocated a sum of US$ 32.44 million to Directorate General of Civil Aviation to
Rising private
implement various schemes.
participation
Budgetary and
support
Investments The government has also supported the Bureau of Civil Aviation Security with US$ 10.81 million to meet
their expenditure.
Allocation to Civil Aviation ministry has been tripled to Rs 6,602.86 crore (US$ 1,019.9 million) under Union
Budget 2018-19.
Notes: AAI – Airports Authority of India, DGCA – Directorate General of Civil Aviation, FY – Indian Financial Year (April – March)
Source: : Ministry of Civil Aviation
Rising private The AAI aims to bring around 250 airports under operation across the country by 2020
Metro
participation
airports and
The AAI has developed and upgraded over 23 metro airports in the last 5 years
Investments
The AAI plans to spend US$ 1.3 billion on non-metro projects over the 5 years (2013–17); mainly focusing
on the modernisation and upgradation of airports; New airports at Itanagar, Kohima and Gangtok are also
planned.
Rising private The Government of Andhra Pradesh is to develop greenfield airports in six cities-Nizamabad, Nellore,
Non-metro airports
participation and Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model.
Investments
Upfront subsidy has been proposed through which non-metro airports would be funded by imposing 2 per
cent levy on both domestic and international airfares.
Over 30 airport development projects are under progress across various regions in Northeast India
Rising private
AAI plans to develop over 20 airports in tier II and III cities in next 5 years
Northeast
participation
Indiaand
Investments The AAI plans to develop Guwahati as an inter-regional hub and Agartala, Imphal and Dibrugarh as
intra-regional hubs
Recourse to the Public Private Partnership (PPP) model has boosted private sector investments in airports
PPP route for five international airports (Delhi, Mumbai, Cochin, Hyderabad, Bengaluru) most noteworthy
• 74 per cent private share holding in IGI Airport (Delhi) - owned majorly by GMR (54 per cent), Fraport AG (10 per cent), Eraman Malaysia (10
per cent); rest of the shares owned by AAI
• 74 per cent private shareholding in CSI Airport (Mumbai) - owned majorly by GVK (50.5 per cent), Bid Services Division (Mauritius) Ltd. (13.5
per cent), ACSA Global (10 per cent); rest of the shares owned by AAI
• 74 per cent private shareholding in RGI Airport (Hyderabad) - owned majorly by GMR (63 per cent), Malaysia Airports Holdings Berhad (11 per
cent); rest of the shares owned by Government of India (13 per cent) and Government of Andhra Pradesh (13 per cent)
• 74 per cent shareholding in Kempagowda International Airport (Bengaluru) – owned majorly by Siemens Project Ventures, Germany (40 per
cent), Unique (Flughafen Zurich AG) Zurich Airport, Switzerland (17 per cent), L&T, India (17 per cent); rest of the shares owned by AAI (13 per
cent) and KSIIDC, which is an agency owned by the state of Karnataka, India (13 per cent)
• In March 2017, by selling off 2 offshore bonds, GMR plans to raise US$250-300 million for refinancing their debt. In June 2017, GMR
announced plans to refinance loans and divest assets in road and power sectors to cut debt so as to invest up to Rs. 7,400 (US$ 1.15 billion)
crore to expand Delhi and Hyderabad airports.
Source: Notes: KSIIDC – Karnataka State Industrial and Infrastructure Development Corporation Ltd.
Delhi
PPP format likely to Bijapur Airport
(Modernisation, continue
Terminal 3)
Shimoga Airport
Terminal 3
construction in Delhi 15 greenfield projects with
Mumbai
completed in 2010 private sector participation Hassan Airport
(Modernisation)
Participation in has been approved in May
international 2015
airport projects
Gulbarga Airport
Presently India has 5 PPP airports each at Mumbai, Delhi, Cochin, Hyderabad and Bengaluru, which together handle over 55 per cent of country’s
air traffic.
Government of India has approved 15 greenfield PPP projects which are expected to increase the air traffic in India. These projects would be
setup in Goa, Navi Mumbai, Maharashtra, Bijapur, Gulbarga, Karnataka, Kerala, West Bengal, Madhya Pradesh, Sikkim, Puducherry and Uttar
Pradesh.
Government of Maharashtra has approved development of Nagpur airport on a PPP basis and allocated Rs 100 crore (US$ 15.45 million) for it in
State Budget 2018-19. The airport will be upgraded on a DBFOT basis with a private player operating it for 60 years.
Type of project/
Name of airport Operator Revenue sharing
PPP structure
Chhatrapati Shivaji Brownfield/BOOT 38.7 per cent of gross revenue to be shared with AAI
Mumbai International Airport Ltd (MIAL)
International Airport
Indira Gandhi Brownfield/BOOT 45.9 per cent of gross revenue to be shared with AAI
Delhi International Airport Ltd (DIAL)
International Airport
Rajiv Gandhi GMR Hyderabad International Airport Ltd Concession fees - 4 per cent of gross revenue to be
Greenfield/BOOT
International Airport (GHIAL) shared with AAI
Bengaluru Bengaluru International Airport Concession fees – 4 per cent of gross revenue to be
Greenfield/BOOT
International Airport Ltd (BIAL) shared with AAI
Notes: BOOT - Build Own Operate Transfer; BOO - Build Own Operate , DBFTO – Design Build Finance Operate Transfer
Source: Association of Private Airport Operators
OPPORTUNITIES
OPPORTUNITIES
Policy support and demand growth Huge potential to develop India as an Leverage on non-aeronautical
unlocking large investment potential MRO hub revenues, improved technology
Success of PPP formats will raise The Indian Aviation Industry aims to boost Airport developers can now draw on
investment in existing and greenfield MRO business in India, which is currently wider revenue opportunities such as
airports worth around Rs 5,000 crore (US$ 775.80 retail, advertising and vehicle parking
million) and is estimated to grow over
Private sector participation in 6 existing Future operators will benefit from
US1.5 billion by 2020
airports operated by AAI is likely to greater operational efficiency due to
increase investment opportunities for Indian airline companies spend over 13– satellite based navigation systems
airport sector 15 per cent of their revenues on like ‘Project Gagan’ which is in
maintenance, which is the 2nd highest development phase
Government of India has launched
cost component after fuel
NABH-Nirman Scheme which is aimed at
increasing India’s airports’ capacity. Inauguration of MRO facility at Hyderabad
According to various estimates, India in May 29, 2015 by Air India Engineering
will require investments worth Rs 3 - 4 Services Limited (AIESL) which is a 100
lakh crore (US$ 46.55 - 62.06 million) to per cent owned subsidiary of Air India
achieve a capacity for having a billion
trips per year.
Notes: ‘Project Gagan’ is directed towards transitioning from a ground-based navigation system to a satellite-based one. AAI and ISRO are jointly working on this. A Space Based
Augmentation System (SABS) will be operational by 2013,MRO – Maintenance, Repair and Overhaul
CASE STUDIES
IGI AIRPORT, DELHI - A COMPELLING SUCCESS
STORY
Awarded at the Skytrax World Airport Awards 2015 for the “Best Airport in Central Asia region” and for the “Best Airport Staff”. Also, they were
felicitated with the prestigious Golden Peacock National Quality Award’ 2015 for their continuous efforts in building a culture across IGI Airport
IGI airport ranked 1st at the ACI Annual Service Quality Awards in 2016, across the globe (category: handling 25-40 million passengers), up from
2nd position in 2012.
Delhi International Airport Ltd became the 1st in the world to receive the ISO 22301:2012 certification for its robust business continuity
management system.
Delhi International Airport Ltd is also India’s 1st airport to cross 50 million passenger mark, in 2016.
In 2017, Delhi Airport was adjudged as the "Best Airport in India and Central Asia" by Skytrax at the World Airport Awards.
Phase 1 of modernisation of IGI International Airport (at a cost of INR86 billion) involved renovation of terminals 1A, 1B, 1C and Terminal 2. It also
included construction of a new domestic terminal along with an integrated passenger terminal (Terminal 3)
During the World Travel Awards, 2015, CSI International Airport, Mumbai’s GVK Lounge at Terminal 2 was felicitated with “Asia’s Leading Airport
Lounge “ Award. Also, the Architizer A+ Award for the “Best Architectural Structures in the World” was bagged by CSI International Airport in the
Transportation-Airports category, 2015.
In 2017, CSIA also secured top award for 'Best Airport Staff Service' in India and Central Asia at the World Airport Awards organised by Skytrax.
In FY17, CSIA became the world’s busiest airport amongst single runway facilities with 45.2 million passengers flying in and out in this fiscal and
by handling 837 flights per day or 1 in 65 seconds on an average.
In FY17, CSI handled 45.2 million of passenger traffic and 0.78 million tonnes of cargo movement.
INDUSTRY
ASSOCIATIONS
INDUSTRY ORGANISATIONS
Address: Rajiv Gandhi Bhawan, Safdarjung Airport, Address: Aurbindo Marg, Opp. Safdarjung Airport,
Fax: 91 11 24629221
USEFUL
INFORMATION
GLOSSARY
• Purchasing Power Parity (used in calculating per-capita GDP – slide 12, GROWTH DRIVERS)
• Public Private Partnership (a type of joint venture between the public and private sectors)
Year INR Equivalent of one US$ Year INR Equivalent of one US$
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