Airport Infra Full File

Airport Infrastructure
Annual Review
January 2018
This document has been prepared by Devisha Sahay and Elizabeth Master
Binaifer F. Jehani (Director, Research Execution).
For any queries please get in touch w ith our client servicing desk.
(clientservicing@crisil.com. Ph +91 22 334 23561)
Contents
Part A: Opinion
Summary A-1
Passenger A-4
Freight A-8
Investment plans A-13
Pr ofitability A-20
Part B: Industry Information
Business of an airport B-1
Regulatory framew ork B-5
Benchmarking of airport B-9
Infrastructure required B-11
Factors that influence performance B-13
MRO B-15
Player Profiles B-18
Part C: Industry statistics
Domestic C-1
International C-9
This page is intentionally left blank
Opinion
Sections
Summary A-1
1.0 Passenger A-4
2.0 Freight A-8
3.0 Investment plans A-13
4.0 Pr ofitability A-20
A-I
A - II
Summary
Growth in air passenger traffic at airports to decline further in fiscal 2019

CRISIL Research expects the air passenger traffic growth at Indian airports to decline to 14-16% in fiscal 2019,
compared with 15-17% growth in fiscal 2018, mainly due to infrastructure constraints and rise in air fares.
Overall passenger traffic at airports is projected to clock 12-14% compound annual growth rate (CAGR) between
fiscals 2017 and 2022 -- with domestic traffic expected to grow by 13-15%, and international traffic by 9-10%. While
the domestic share of total passenger traffic is pegged to increase, it is dependent on growth in gross domestic
product (GDP) and airport infrastructure (through greenfield and brownfield projects), as well as a revival in the global
economy.
Limited routes operational under UDAN owing to slot constraints

Till October 2017, of the allocated routes for 45 UDAN airports, ¿only 28 routes connecting 14 airports were
operational. Among the five airlines that won routes in Phase I of Regional Connectivity Scheme (RCS), only three -
Alliance Air, SpiceJet, and TruJet, have started operations. Moreover, these three airlines have commenced
operations on only a few of their allocated routes, due to constraints at metro airports, and delays in acquiring
requisite aircraft licenses.
International freight traffic growth at airports to soar in fiscal 2018

CRISIL Research expects the freight traffic at airports to grow by 11-13% in fiscal 2018, owing to an expected revival
in the global economy, domestic growth, increasing connectivity on account of air service agreements, and a booming
e-commerce industry. During the first half of fiscal 2018, international freight traffic increased 19%, due to movement
of aircraft components, uncertainties due to implementation of Goods and Services Tax (GST), and movement of
transit cargo, among other factors. During the second half of the fiscal, international freight traffic growth is expected
to decline to 14-16%.
During fiscal 2019, we expect international freight traffic growth to decline further to 8-10%, as the exceptional issues
faced in the previous fiscal normalise.
Greenfield investments to dominate by fiscal 2022

Between fiscals 2018 and 2022, CRISIL Research expects Rs 260-280 billion of investment in airports. We expect
investments to pick up by end-fiscal 2018, as construction of greenfield airport projects, such as Navi Mumbai and
Goa airport, should commence. CRISIL Research estimates the share of greenfield projects in total airport
investment to rise to 70-75% by fiscal 2022, from 45-50% in fiscal 2017.
Investments till fiscal 2018 are expected to remain, due to:

 Delays in environmental clearances, financial closure, floating of requests for qualification, and awarding
of bids
 Inability to execute greenfield projects due to delayed approvals
 Hurdles in land acquisition, and
 Protests by the affected local populace
A-1
AAI emerges as the winner for greenfield airport at Bhogapuram; pre -development work
for Navi Mumbai airport begins
In August 2017, GMR’s Goa airport achieved financial closure for the construction of Phase I of the airport.
Construction of the airport will begin soon as the company is awaiting approvals from the government. GMR signed
a concessionaire agreement to construct Goa Airport, offering 37% revenue share to the government of Goa in
November 2016.
In June 2017, Airports Authority of India (AAI) won the bid for a greenfield airport in Bhogapuram, offering a revenue
share of 30.2% to the government of Andhra Pradesh
In February 2017, GVK emerged the winner in the race for the Navi Mumbai Airport, offering 12.6% revenue share
to AAI. The pre-development work for the airport has recently begun, but will take a significant amount of time to
complete due to the diversion of river, hill cutting, and ground levelling required. The government plans to complete
the pre-development work by mid-2019, post which the airport construction is scheduled to begin.
DIAL’s tariff declines 89% due to the implementation of second tariff order
In July 2017, Honorable Supreme Court ordered the implementation of tariff order for the second control period for
Delhi Airport. After the order, the tariff at Delhi airport nosedived 89%, as the airport had already recovered significant
revenue for the second control period (fiscals 2015 to 2019). Moreover, it has asked the appellate tribunal of Airports
Economic Regulatory Authority (AERA) to resolve the pending appeals of Delhi International Airport Limited (DIAL).
In December 2015, even though AERA initially proposed 96% reduction in tariffs for Delhi International Airport Limited
(DIAL) for the second control period, effective January 1, 2016, AERA finally lowered the reduction percentage to
89% to help DIAL manage its cash deficit of Rs 4,048 million. This reduction in tariff factors under-recovery by DIAL
in the first control period.
Revenue at MIAL declined on account of reduction in UDF

In September 2016, AERA released the second tariff order for the Mumbai International Airport Ltd (MIAL), mandating
implementation of the said tariffs from November 1, 2016. As per the order, user development fee (UDF) for domestic
passengers was reduced from Rs 274 to 0, and from Rs 548 to Rs 227 for international passengers. MIAL recovered
higher than anticipated aeronautical revenue during the first control period (fiscals 2009 to 2014).
AERA orders 30% hybrid till at all major airports, shift to improve revenue for
Bengaluru airport
The National Civil Aviation Policy, 2016, and AERA's ensuing order in January 2017, prescribes calculation of future
tariffs at all airports on the basis of 30% hybrid-till. This is expected to improve Bangalore International Airport Ltd's
(BIAL) revenue, as the airport followed a 40% hybrid-till in the first control period.
Even though the first control period for BIAL was completed on March 31, 2016, AERA has directed continuation
of existing tariffs for next six months, or till determination of tariffs for the second control period.
A-2
Hyderabad airport awaits second tariff order
Similarly, though the first control period for GMR Hyderabad International Airport Ltd (GHIAL) was completed on
March 31, 2016, AERA directed it to continue existing tariffs for the next six months, or till determination of tariffs for
the second control period.
Effective November 3, 2015, the Directorate General of Civil Aviation directed restoration of UDF at Hyderabad airport
at Rs 430 per ticket for domestic passengers, and Rs 1,700 per ticket for international passengers. As a
result, GHIAL's revenue improved significantly from the third quarter of fiscal 2016.
A-3
Passenger
Growth in air passenger traffic to slow down in fiscal 2019

CRISIL Research expects the air passenger traffic to decelerate to 14-16% in fiscal 2019 compared to 15-17% in
fiscal 2018 due to infrastructure constraints and rise in air fares. During H1 fiscal 2018, the passenger traffic grew
15% on-year due to slow capacity addition on account of aircraft issues and the growth in expected to pick up in H2
due to resolution of the issue.
The pace is projected to slow down further over the long term because of continued constraints in airport
infrastructure and higher air fares. Between fiscals 2017 and 2022, passenger traffic to grow is expected at 12-14%
CAGR, spurred by domestic traffic growth of 13-15% CAGR. While domestic share in overall passenger traffic is
forecast to increase, the rate of increase is dependent on growth in domestic GDP and airport infrastructure, and
global economy.
Pas s e ng er t raffic at In dian airpo rts
E: Estimated; P: Projected
So u r ce : Air p o r t s Au t h o r it y o f In d ia ( AAI) , CRISIL Re s e ar ch
Pas s e ng er t raffic m ix
So u r ce : AAI, CRISIL Re s e ar ch
Limited routes operational under UDAN

Till October 2017, only 28 routes connecting 14 airports were operational under UDAN, out of the allocated 45 routes.
Among the five airlines that were awarded the routes in phase one of the Regional Connectivity Scheme (RCS), only
three - Alliance Air, SpiceJet and TruJet - have started operations. However, these three airlines have commenced
operations only on a few routes because of constraints at metro airports and delay in acquiring requisite licence for
aircraft by new carriers.
A-4
The bidding process for the second phase has been completed, with the government yet to announce the winners.
The UDAN scheme, unveiled in October 2016, aims to revive 414 unserved/underserved airports to improve
connectivity to tier II and III cities. Under the scheme, airfares for a given distance are locked, with revis ion allowed
quarterly revision based on CPI inflation. For instance, RCS fares for a 501-525 km sector is currently fixed at below
Rs 2,500.
As these are not high passenger traffic routes and require the deployment of smaller aircraft, which are costlier to
operate, the government is encouraging players by providing benefits, such as cap in value-added tax on aviation
turbine fuel to 1%, as well as reduction in excise duty to 2% from 14%, and exemption from levy of airport charges,
such as passenger service fee, development fee, and user development fee, on RCS tickets at public and private
airports.
Only 14% of RCS airports are ready for take-off

From data compiled by CRISIL Research, only 55-60 airports/ airstrips – or 14% of the total 414 airports, including
12 underserved and the remaining unserved - have the requisite infrastructure for small aircraft. For one, the
operation of a small aircraft (ATR 42) typically requires a runway length of 1,500-1,600 metres, which is not available
at several of the airports.
Congestion at metro airports to boost connectivity from non-metro airports

Over fiscal 2012 to 2017, total passenger traffic at metro airports grew at 10% CAGR. Traffic in Delhi and Mumbai
airports, which together contributed ~60% of total metro airports' passenger traffic, grew at 11% and 9% CAGR,
respectively.
Currently, several domestic as well as foreign carriers are adding direct flights for domestic and international routes
to tier and from II and III cities. This is expected to reduce the dominance of metro airports as hubs, and, thereby,
lower their share in the total passenger traffic. For instance, Air India and Indigo have started international flights
connecting Chandigarh with Sharjah and Dubai, respectively.
Do m e s tic an d in t erna tio nal p assen ger t raf fic
A-5
Also, to address congestion, airlines are increasingly deploying bigger aircraft for domestic and international
operations from Mumbai airport owing to unavailability of slots. With commencement of construction of the Navi
Mumbai airport delayed, the situation at the Mumbai airport could worsen.
Sh ar e o f m et ro an d n o n-m etro airp orts
Traffic at non-metro airports to outpace metros

Passenger traffic at airports increased at ~10% CAGR over the past five-years; non-metro airport traffic grew at
12% CAGR as compared with 10% CAGR at metro airports, owing to increasing connectivity, shortage of
infrastructure at metro airports and higher flight frequency. Consequently, the market share of non-metro airports in
domestic passenger traffic rose to 34% in fiscal 2017 from 32% in fiscal 2012.
With the existing metro airports operating at peak capacity and delays in capacity expansion, implementation of RCS
and opening up of new routes will see non-metro airports clock a higher growth trajectory compared with metro
airports.
Do m e s tic an d In t ernatio nal p assen ger t raf fic at m etro airp orts
A-6
Among metro airports, Bengaluru airport posted the highest growth in passenger traffic during fiscal 2012 to 2017 at
13% CAGR, followed by Hyderabad airport at 12% CAGR. Chennai airport posted the slowest growth at 7% CAGR.
Do m e s tic an d In t ernatio nal p assen ger t raf fic at m ajor n o n -m et ro air po rts
Almost equal mix of domestic inbound and outbound passengers at metro

airports
Even though domestic passenger traffic at the six metro airports varied significantly, from 12 million passengers at
Hyderabad airport to 42 million passengers at Delhi airport in fiscal 2017, the proportion of inbound and outbound
passengers in the domestic segment was relatively stable at ~50% across airports. Thus, only ~50% of the total
passenger traffic at metro airports contribute to the user development fee at the airports.
Pr o p o r tion o f d o m estic in bo un d an d o ut bo un d p assen ger t raff ic at m etro air po rts in f iscal 2017
So u r ce : Dir e ct o r at e Ge n e r al o f Civil Aviat io n , AAI, CRISIL Re s e ar ch
A-7
Freight
Freight traffic at Indian airports to post steady growth in the long term
CRISIL Research expects the freight traffic at airports to grow 11-13% in fiscal 2018, because of the expected revival
in the global economy, domestic growth, increasing connectivity because of air-service agreements and the booming
e-commerce industry. During the first half of fiscal 2018, international freight traffic increased 19%, due to the
movement of aircraft components, uncertainties from GST implementation, and movement of transit cargo, among
others. During the second half international freight traffic growth is expected to decline and average at 14-16% for
the financial year.
During fiscal 2019, we expect the international freight traffic growth to decline to 8-10%, as the exceptional issues
faced during fiscal 2018 normalise.
In the long term, freight traffic is expected to grow at a compounded annual rate (CAGR) of 8-10% between fiscals
2017 and 2022, as a revival in the global economy should boost exports, while domestic growth lifts imports.
Fr e ig h t t raffic ( d om est ic an d in tern ation al)
So u r ce : Air p o r t s Au t h o r it y o f In d ia ( AAI) , CRISIL Re s e ar ch
Fr e ig h t t raffic m ix
A-8
Other factors aiding growth are:
 Targeting pharmaceutical exports through participation in countries such as North America, Africa and
Common Wealth in fiscal 2016-17.
 The government's target to double exports (to ~$261 billion in 2015-16), enhance the share of
manufacturing in gross domestic product to 25% by fiscal 2020 from 15% in fiscal 2016, and sign free-
trade agreements with Japan, Malaysia and South Korea.
 Upgradation of freight-handling infrastructure at major airports.
 Initiatives to ease the movement of cargo at airports, such as air freight station guidelines, to reduce the
dwelling time of import and export cargo.
Air freight is typically used for key commodities such as gems and jewellery, pharmaceuticals, electronic equipment,
automobile and machine components, garments and perishable products. Further, the increase in dedicated freight
carriers in international routes is also expected to support air freight growth.
Domestic air freight traffic is expected to grow at a CAGR of 7-9% over the next five years, aided by growth in the
Indian economy and increasing penetration of e-commerce, which is pegged to grow at a CAGR of 28-33%
between fiscals 2017 and 2020.
Do m e s tic an d in t ernatio nal f reig ht t rend
Policy for civil aviation aims to reinforce cargo traffic

In line with the National Civil Aviation Policy (NCAP) 2016, the government has implemented a single-window project,
aimed at shortening the dwelling time of exported and imported air cargo, by bringing all clearance-responsible
regulatory agencies onto a common platform. This has reduced the free period (dwelling t ime) for import and export
of air cargo from 72 hours to 48 hours. Moreover, 24X7 customs clearance of import/export cargo has been initiated
at 13 airports.
A-9
As of fiscal 2017, of the 80 airports operated by the Airport Authority of India (AAI), only 56 handled freight. To ensure
availability of cargo-handling services at airports, the NCAP has also proposed a minimum mandatory level of cargo
facility at the upcoming airports to facilitate easy freight movement (import and export), and thereby sustain long-
term growth.
With e-commerce's popularity rising, demand for express cargo has risen rapidly, leading to a requirement of
adequate infrastructure to process cargo swiftly and cost-efficiently. Currently, 17 common-user domestic cargo
terminals (CUDCT) are operationalised by the AAI until fiscal 2017.
Moreover, the Ministry of Civil Aviation has aimed to develop cargo villages near airports, which we believe will enable
efficient transfers with faster processing in the industry. Additionally, the NCAP stresses to encourage airport
operators to provide space to express-cargo freighters for a lease of at least 10 years to develop dedicated
infrastructure to improve operational efficiency.
Top 6 airports account for 87% by volume

In fiscal 2017, six metro airports accounted for ~ 87% of total freight traffic by volume, of which Delhi and Mumbai
airports together accounted for 55%.
Fr e ig h t t raffic h an dled at m et ro an d n o n-m etro airp ort s
The reason for such high traffic concentration is because metro airports act as hubs for international destinations and
e-commerce. Hence, cargo carriers are widening their reach to include more metro airports in freight services, to
efficiently transport bulk freight. For instance, Ethiopian Airlines is now operating cargo flights to the Bengaluru
airport, in addition to flights to Mumbai, New Delhi, and Chennai.
Metro airports are increasingly adopting digital modes to track cargo. For instance, the Mumbai airport has recently
launched a mobile app for cargo operations, thereby enabling tracking of exports that can expedite the export-
incentive realisation process, movement of vehicle/shipment within the cargo terminal, and filing of mandatory
regulatory documents at the destination.
A - 10
Do m e s tic an d in t ernatio nal f reig ht at m etro airp ort s
Air p o rt -w ise air carg o im p orts an d e xpo rts ( 2016- 17)
So u r ce : DGCA, CRISIL Re s e ar ch
A - 11
Non-metro airports to improve their share in freight traffic
International freight traffic at non-metro airports has grown at a CAGR of 3.4% between fiscals 2012 and 2017,
whereas metro airports reported a 4.9% CAGR. The top five non-metro airports account for about 95% of international
freight traffic among the non-metro airports.
Domestic freight traffic at non-metro airports has grown at a CAGR of 12.3% during the same period, compared with
metro airports' 5.8% CAGR. The top five non-metro airports account for 55% of the domestic freight traffic among
non-metro airports.
With the improvement in connectivity of non-metro airports, we expect growth in freight to pick up momentum in both
domestic and international routes. Recently, the Pune airport has commenced international cargo operations.
Do m e s tic an d In t ernatio nal f reig ht at p rom inen t n o n -m et ro air po rts
A - 12
Investment plans
Greenfield airports to attract majority of investments

CRISIL Research expects investments of Rs 260-280 billion in airport infrastructure between fiscals 2017 and 2022,
similar to that in the previous five year period. Airport investments will be driven by major greenfield airports such as
Navi Mumbai, Goa, and Bhogapuram, especially from fiscal 2019 onward. Earlier, investments were
primarily focussed on brownfield projects.
The sector received investments of Rs 361 billion in the Eleventh Five Year Plan (fiscal 2008 to 2012), mainly towards
Delhi and Mumbai airports. As per estimates provided by the Planning Commission's High Level Committee in its
second report of June 2014, investment worth Rs 336 billion were planned for the development of airport
infrastructure in the Twelfth Five Year Plan (fiscal 2013 to 2017). However, CRISIL Research estimates only half of
these investments have materialised over the Plan period, as they were mostly meant for greenfield projects that have
faced delays, owing to approval and land acquisition hurdles.
Investments are expected to remain subdued up to end of fiscal 2018 because of:
 Delays in environmental clearances, financial closures, floating of requests for qualification, and
awarding of bids
 Inability of greenfield projects to commence on schedule owing to delayed approvals
 Hurdles during land acquisition, and
 Protests by affected locals
Air p o rt in frastru ctu re in vestm en ts
Note: 2012-13 and 2013-14 are estimates published by High-Level Committee on Financing Infrastructure, Planning Commission, June 2014
So u r ce : Plan n in g Co m m is s io n , CRISIL Re s e ar ch
A - 13
CRISIL Research expects the share of greenfield airport projects to rise to 70-75% by fiscal 2022, from 45-50%
currently.
Pr o p o r tion o f g r een field p ro ject s t o r ise sign ificantly
E: Estimated
So u r ce : CRISIL Re s e ar ch
Most major airports to be built on PPP basis

CRISIL Research expects majority of the upcoming airports to be developed through public-private partnerships
(PPP) in the next five years. Large airport projects, such as those in Navi Mumbai, Goa (Mopa), Nagpur, Kannur
(Kerala) and Bhogapuram (Andhra Pradesh), have been announced as PPPs.
Timely implementation will be critical

Though most forthcoming investments are in greenfield projects, implementation hurdles remain a concern. The
biggest impediments include funding, land acquisition issues, lack of timely approvals, land scarcity, and viability
concerns surrounding smaller airports. A case in point is the Navi Mumbai airport project, where some signs
of construction are finally emerging after nearly two decades of the project's announcement. The Ministry of Civil
Aviation had constituted a committee for the Navi Mumbai project in 1997. Constraints at major airports are the result
of such delays in airport investments.
On the other hand, brownfield expansions have adhered to project deadlines. For instance, work on the T2 terminal
at the Mumbai International Airport was completed as planned in February 2014.
The government's actions, such as speeding up project approvals through automated clearances using digital
platforms, setting up of project monitoring group to fast-track investments and monitoring of timelines set for
clearances by various ministries are positive for the industry. CRISIL Research believes such measures will facilitate
faster resolution of clearances and land-acquisition issues, as most of the upcoming projects will be greenfield.
Kannur International Airport is also on schedule to completion and is presently undergoing runway tests and
clearances. It is likely to commence operations in early fiscal 2019.
A - 14
AAI wins airport project at Bhogapuram under PPP mode
In August 2017, the Airports Authority of India (AAI) won the bid for the greenfield airport at Bhogapuram, Andhra
Pradesh, by offering a revenue share of 30.2%.
The GMR group also participated in the bid. The airport, seen as an alternative to the one at Visakhapatnam, is
planned to be constructed at a cost of Rs 23 billion. The Visakhapatnam airport is facing hurdles in capacity expansion
owing to unavailability of land. Construction of the new airport will also support operations of wide body aircraft,
leading to potential for international connectivity.
GVK group wins bid for Navi Mumbai airport; pre-development work begins
The GVK group won the bid for Navi Mumbai airport in February 2017, by offering 12.6% of the revenue. Pre-
development work commenced in June 2017, and is planned to be completed by 2019.
Four bidders, namely, GMR group, GVK-led Mumbai International Airport, the Zurich Airport along with Hiranandani
Developers, and MIA Infrastructure of France with Tata Realty were eligible for the request for proposal (RFP) stage.
However, only two bidders, GMR and GVK, submitted the bids for the project owing to execution challenges.
The Navi Mumbai airport is proposed to be developed on lines of a PPP model with 30% hybrid-till. A special purpose
vehicle will be formed, in which 26% of paid-up equity will be held by CIDCO and its nominees (including project -
affected entities), and the rest, by a private developer.
Even though the airport is undergoing pre-development work, land acquisition at select locations is yet to be
completed, and could potentially delay the commencement of airport operations.
MoEF defers stage II forest clearance

The Ministry of Environment and Forest (MoEF) deferred stage II forest clearance for Navi Mumbai Airport in January
2017, as it found deficiencies in the compensatory afforestation scheme. This clearance is crucial for hill cutting and
river diversion.
The environmental clearances for the airport was granted in 2010, while forest clearance and the Mumbai High
Court's permission, which were essential as the allotted land constituted mangroves, were given in 2013.
Second airport in Pune at Purandar

In 2016, Maharashtra Chief Minister Devendra Fadnavis approved land in Purandar for a greenfield airport project in
Pune. The proposed airport site, already approved by the AAI, will be spread over 2,400 hectares. The government
has also decided to grant permission for carrying out a detailed project report and an obstacle limitation surface
survey for the proposed site. It believes the land acquisition will not be delayed, as most farmers have already
expressed willingness for the project.
Earlier, sites identified at Khed and Chakan were ruled out. The original site finalised in Chakan in 2008 met with
opposition from farmers. Another site was explored at Khed, but this too faced problems with over half the land
coming under a special economic zone.
A - 15
In October 2015, a long-pending proposal to expand the existing Pune airport received a nod from the Defence
Ministry, which agreed to extend the airport by 15 acres. However, this will not serve as an alternative for a new
airport, and only provide temporary relief.
GMR group completes financial closure of Goa airport

The Goa government awarded the Goa International Airport project at Mopa to the GMR group in August 2016. The
GMR group won the bid by offering the highest revenue share of 36.99% to AAI. In November, it signed a
concessionaire agreement with the government to design, build, finance, and operate the international airport for a
period of 40 years, with an extension option of 20 years. As per the concession agreement, the airport would be
operated on 30% hybrid-till basis. About 232 acres of land was provided for commercial purposes.
The financial closure of the airport was completed in August 2017.
The airport was planned in Mopa a decade ago, owing to capacity constraint at the existing Dabolim airport. In
October 2014, five bidders - AAI, GVK, GMR, Essel Infra,and Voluptas Developers - came forward to bid for the
request for qualification. In January 2016, the Goa government floated the RFP, for which shortlisted companies
GMR, GVK, AAI and Essel Infra put in bids, and GMR group emerged asthe winner.
A - 16
M ajo r u p com ing airp ort p r ojects
Note: We have not factored in Pune airport, as the land site has not been finalised.
So u r ce : In d u s t r y, CRISIL Re s e ar ch
A - 17
AAI spells out more investments for fiscal 2018
Although the total outlay (budgetary support as well as internal and extra budgetary resources) for civil aviation in
fiscal 2018 remained flat on-year at Rs 60 billion, the total planned outlay by AAI has increased 29% over revised
estimates of fiscal 2017, to Rs 25 billion. These investments are mainly intended towards modernisation of existing
airports to increase capacity.
Severe congestion despite huge investments

The 'open-skies' policy and entry of low-fare carriers has exploded air travel demand. Moreover, domestic airlines
have been allowed to partner with foreign carriers, which have been tying up with the former to access secondary
destinations, aiding air traffic growth. However, airport infrastructure has not kept pace with air travel, resultin g in
congestion for airlines, unavailability of landing slots, and inadequate parking bays at certain airports. As air traffic
growth is expected to outpace infrastructure capacity, we expect airports to face severe congestion as in the past.
For instance, the Chennai airport reported capacity utilisation in excess of 100% in fiscal 2010.
Currently, the Delhi, Bangalore, and Hyderabad airports are already operating at peak terminal utilisation, while
Mumbai airport is facing severe congestion issues on the runway. Owing to the lack of fresh parking slots, airlines
are upgrading capacity in existing routes by deploying the biggest aircraft in their fleet. For instance, Jet Airways has
upgraded its aircraft on the Mumbai-Bangkok and Mumbai-Doha routes. Besides Jet Airways, Air India has also
upgraded its aircraft on domestic routes such as Mumbai-Delhi. With few signs of commencement of Navi Mumbai
airport in the near term, there is no respite in sight for air passenger traffic.
M ajo r air po rts are o vercrow ded
A - 18
CRISIL ' s f r am ew ork f o r f orecasting in vestm en ts in air po rt s ect or
A - 19
Profitability
Introduction
PPP airports now handle nearly two-thirds of passenger traffic
Indian airports were operated solely by the Airports Authority of India (AAI), since its formation in 1995 by an Act of
Parliament, merging two former government airport authorities. To address rising air traffic, the government opened
up the sector to public-private partnerships (PPP) in 1999. The aim was to boost investment, by awarding brownfield
and greenfield projects to private developers through competitive bidding. Over 60% of investment in the Eleventh
Five-Year Plan (2007-2012) for airports was meant for development of greenfield airports in Bengaluru and
Hyderabad, and brownfield airports in Delhi and Mumbai, under the PPP model.
Two consortiums, led by GMR Infrastructure Ltd and GVK Power and Infrastructure Ltd, bagged a brownfield project
each in Delhi and Mumbai, respectively, and a greenfield project each in Hyderabad and Bengaluru, respectively.
They were awarded 30-year concession periods, extendable by another 30 years, to operate the airports. In return,
the developers were required to share a portion of their revenue with AAI. Currently, nearly 60% of passenger traffic
in India is handled by airports developed on PPP basis in Delhi, Mumbai, Bengaluru, Hyderabad and Cochin.
Business models of PPP airports

Su m m ary o f b u siness m o dels o f var ious PPP air p o rts
Note: TBD: To be decided

So u r ce : AERA, CRISIL Re s e ar ch
A - 20
Ke y r e ve nu e st ream s at t h e airpo rts
AERA orders 30% hybrid-till model adoption for tariff-setting at all major airports
In line with National Civil Aviation Policy, 2016, and to ensure uniformity and level playing field across various
operators, the Airports Economic Regulatory Authority (AERA) ordered a shift of tariff model at all major airports to
30% hybrid-till. However, in case of Mumbai and Delhi airports, tariff will continue to be determined as per state-
support agreements (SSA) entered into between the Government of India and respective airport operators.
Aeronautical revenue is defined under SSA, signed by the airport operator with the government, and under operation,
management and development agreement (OMDA), signed between the developer and AAI.
Key elements of aeronautical revenue include:

 User-development fee (UDF): Charged by an airport operator from the airlines, to cover any deficit in
revenue to meet pre-defined rate of return on investment made for providing airport services. The airlines
passes on this charge to passengers. UDF is included in the airfare.
 Landing and parking charges: Charged by an airport operator to airlines depending on frequency of
aircraft movement, weight of aircraft, and time spent at airport.
A - 21
Aeronautical tariffs are set after considering:
 Weighted-average cost of capital (WACC),
 Project cost and means of finance,
 Levy of development fee for meeting financing shortfall, and
 Regulatory asset base (RAB), on which returns will be calculated.
Calcu lat io n o f ave rag e reven ue r equ irem ent ( ARR)
Note: *assumed as 30% hybrid-till model

** Aero revenue includes revenue from charging UDF
ARR from aeronautical activity may also be cross-subsidised with revenue from non-aeronautical activity, subject to
the model adopted by a particular airport. Also, in future, tariff for all PPP airports will be calculated on 30% hybrid-
till basis, as per the National Civil Aviation Policy, 2016 (NCAP).
Tariff for DIAL declines 89% from July 2017

In July 2017, UDF charges at Delhi airport have plunged on account of implementation of second tariff order. As per
this order, UDF charges for arriving passengers have been revised to zero and for departing domestic and
international passengers, to Rs 10 and Rs 45, respectively.
When Delhi International Airport Ltd (DIAL) took over the airport from AAI, aeronautical charges were initially levied
based on the prevailing rate. These were subsequently raised by 10% in February 2009. With the formation of AERA
in June 2009, the agency formulated aeronautical charges based on SSA between DIAL and the government. Under
SSA, airports were allowed to earn a required rate of return on the RAB.
In case of DIAL, aggregate revenue requirement (ARR) is cross-subsidised with 30% non-aeronautical revenue under
the hybrid-till approach. Aeronautical charges were then to be fixed, based on escalation rates at which DIAL
recovered net present value (NPV) of the target revenue over five-year regulatory period (fiscals 2010 to 2014).
A - 22
This mechanism for determining aeronautical charges was proposed to take effect from May 2009, the third year of
the concession period. But delays in constitution of AERA set back tariff finalisation. Tariffs were hiked to compensate
DIAL for the over-three year delay in tariff fixation. Subsequently, aeronautical tariffs jumped 346% in May 2012 at
DIAL. There was a shortfall in the first control period, which would have been covered till date, as higher tariff in the
second control period (April 1, 2014 to March 31, 2019) has also still not been reset. As DIAL's appeal against AERA's
tariff order for the first control period is pending, the tariff order for the second control period, announced in December
2015, was not implemented till July 2017.
In July 2017, Honorable Supreme Court has ordered implementation of second tariff order at Delhi airport with
immediate effect while appellate tribunal of AERA (AERAAT) works towards resolution of these appeals.
MIAL saw decline in UDF from Q3 FY2017 due to implementation of second

tariff order
As per tariff order of AERA in September 2016, the second control period for Mumbai International Airport Ltd (MIAL)
has been defined as April 1, 2014 to March 31, 2019. The order came into effect from November 1, 2016. Its key
highlights were:
 Cost of debt for the first control period was calculated at 10.48%, and hence, WACC was increased to
12.06%.
 In the first control period, MIAL over recovered about Rs 5 billion, and the same was adjusted during
calculations for the second control period.
 Cost of debt for the second control period was calculated at 11.16%, hence, WACC for the second
control period was set at 11.78%.
 According to the order, domestic passenger traffic is expected to rise at a compounded annual growth
rate (CAGR) of 7.7%, from 25.2 million in fiscal 2015 to 33.95 million in 2019. International passengers
are expected to grow at CAGR of 6.8%, from 11.43 million to 14.86 million.
 Non–aeronautical revenue is expected to rise at CAGR of 10%, from Rs 10.2 billion to Rs 14.96 billion.
Prevailing aeronautical tariffs at GHIAL to continue

According to AERA's circular dated April 1, 2016, the GMR Rajiv Gandhi Hyderabad International Airport (GHIAL)
and Bengaluru International Airport (BIAL) were allowed to charge prevailing aeronautical tariff for six months or until
the determination of tariffs for second control period.
Initially, GHIAL and BIAL (renamed Kempegowda International Airport on July 17, 2013) were allowed to levy aero
charges in line with AAI rates. The rates were subsequently increased by 10% in July 2009. As part of the concession
agreement, GHIAL and BIAL were allowed to charge UDF to enable developers earn required rate of return. The
government proposed that the required rate would initially be determined by the Ministry of Civil Aviation (prior to the
formation of AERA), and thereafter by AERA.
A - 23
In February 2014, AERA directed the single-till model for computation of aeronautical tariffs at GHIAL. Following
adoption of the single-till model in February 2014, UDF at GHIAL was abolished from April 1, 2014 to March 31,
2016, because of over-recovery during the current control period (April 1, 2011, to March 31, 2016). The single-till
approach resulted in lower tariffs because of profit-sharing to meet the ARR of the airport. Accordingly, GHIAL
appealed against the AERA order. After various hearings, in June 2015, the court directed Ministry of Civil Aviation
to approve the hybrid-till model for GHIAL with 30% cross-subsidisation of non-aero revenue.
Effective November 3, 2015, the Directorate General of Civil Aviation (DGCA) directed restoration of the UDF at
Hyderabad airport at Rs 430 per ticket for domestic travel and Rs 1,700 for international travel. Because of this,
revenue at GHIAL is estimated to have improved from the second half of 2015-16. Moreover, rising passenger traffic
would have aided revenue growth.
Aeronautical revenue for BIAL to increase in second control period

BIAL's revenue is expected to increase in second control period, owing to change in revenue model of the airport
from 40% hybrid-till to 30% hybrid-till, as per the National Civil Aviation Policy, 2016.
AERA had finalised the hybrid-till model for computing aeronautical tariffs at BIAL in June 2014, for the first control
period (fiscals 2012 to 2016), wherein ARR was to be cross -subsidised with 40% of the non-aero revenue.
Higher share of aeronautical revenue at private sector airports

Aeronautical revenue comprises a larger share of revenue at private sector airports, compared with AAI airports.
However, GHIAL's share of aeronautical revenue declined significantly in fiscal 2015, because of abolishment of UDF
at the airport from April 1, 2014, to March 31, 2016.
Sh ar e o f ae ron au tical revenu e at PPP air p ort s in In dia
So u r ce : Co m p an y r e p o r t s , CRISIL Re s e ar ch
A - 24
Real estate monetisation, other non-aero revenue hold vast potential
AERA has kept real estate potential outside the purview of tariff calculation for DIAL, MIAL, GHIAL and BIAL.
Consequently, given the sizeable quantum of land involved, real estate monetisation offers a huge potential for
developers (for details, please refer to sections on brownfield and greenfield projects). Similarly, with the hybrid-till
model, only part of the non-aeronautical revenue is considered while computing aeronautical tariffs. The remaining
portion of non-aero revenue can offer a potential upside to airport operators.
Non-aero revenue includes unregulated revenue from ground handling, cargo handling, aircraft refueling, duty -free
shops, advertisements, food and beverages, and rentals from leased space. Passenger shopping at airports is mostly
done between security clearance at immigration desks and boarding. Hence, airports are trying to minimise waiting
time at check-in, security and immigration queues to maximise this opportunity. Airport developers have formed joint
ventures to conduct these non-aero activities and awarded concession agreements to reputed operators. The
developers receive a revenue share from these concessions.
Exceptions are for BIAL and GHIAL, where cargo facility, ground handling, and fuel supply are considered as
aeronautical revenue for tariff determination for the current control period.
L an d m o n etisation can b oo st r evenue, b u t p r og ress is m inim al
Note: (I) The above values are in acres.

(ii) Mumbai airport data is proportioned based on monetisation of 1.17 million sq ft out of 22 million sq ft.
A - 25
Brownfield airports
Tariff at Delhi airport nosedives
In July 2017, the Honourable Supreme Court ordered the implementation of tariffs for the second control period at
Delhi airport as it had recovered significant amount of revenue for the control period. Consequently, the tariff at Delhi
airport nosedived 89%. Moreover, the Supreme Court has asked the appellate tribunal of Airports Economic
Regulatory Authority (AERA) to resolve the pending appeals of Delhi International Airport Ltd (DIAL).
In December 2015, AERA had proposed 96% reduction in tariff for DIAL in the second control period (fiscals 2015 to
2019), effective January 1, 2016. However, it was changed to 89%, to help DIAL manage its cash deficit of Rs 4,048
million. The tariff reduction factors the true-up of Rs 360 million as of April 2014, owing to under-recovery by DIAL in
the first control period.
M o d if ication s m ade as p er p ro po sed seco nd t ariff o r der issu ed f o r De lhi airp ort
The steep tariff decline at DIAL can be attributed to recovery of a substantial portion of aggregate revenue
requirement (ARR) for the second control period, owing to prevailing high tariffs (346% hike in user development fee
(UDF) from May 15, 2012). As per the new tariff order, no UDF will be levied on arriving passengers (domestic
and international). Also, charges for departing passengers, domestic and international, have been pared to Rs 10
and Rs 45, respectively.
UDF at DIAL b e f o re im plemen tatio n o f seco nd t arif f o rd er
Note: UDF is charged by an airport from airlines to cover revenue deficit to meet the pre -defined rate of return on investment for providing
airport services.
So u r ce : In d u s t r y
A - 26
Aero revenue at MIAL declines with steep reduction in UDF
The AERA released its second tariff order for Mumbai International Airport Ltd (MIAL) in September 2016, effective
from November 1. As per the order, the UDF for domestic passengers, which was Rs 274, was removed, and for
international passengers it was lowered to Rs 227 from Rs 548.
In January 2016, AERA granted permission to levy additional development fees (DF) of Rs 20 per domestic
passenger and Rs 120 per international passenger embarking at MIAL to fund the metro connectivity project
(connecting the airport with Mumbai Metro). With this, total DF stands at Rs 120 per domestic embarking passenger
and Rs 720 per international embarking passenger, from April 1, 2016, to March 31, 2021.
Despite the increase in DF, CRISIL Research expects MIAL's revenue to drop, as UDF charges decline in the second
control period, offsetting the over-recovery of Rs 5 billion in the first control period. During the first control period,
UDF was hiked 151% on January 1, 2013, on account of under-recovery before the determination of tariff. Moreover,
domestic passenger traffic grew robustly and was above AERA's estimate for the first control period, which led to
higher-than-expected revenue from UDF.
Control period is a five-year tariff horizon provided by AERA. The first control period was set in June 2014, with
retrospective effect.
Land monetisation, non-aero activities to enhance profitability

Non-aeronautical revenue (excluding 30% for hybrid-till model computation) and real estate monetisation can boost
revenue, as both are largely unregulated. Non-aeronautical revenue is expected to grow robustly, reaping benefits
of strong passenger traffic outlook. CRISIL Research expects passenger traffic at Indian airports to increase at a
compound annual growth rate (CAGR) of 11-13% between fiscals 2016 and 2021.
AERA has kept real estate outside the purview of tariff calculation, which can offer a significant upside, given the
sizeable quantum of land available with airport operators. However, monetisation of the land bank is subject to
offtake, price risks and land-use constraints specified in the agreements.
A - 27
DIAL monetises another 22 acres in FY17
In January 2017, DIAL monetised about 22.77 acres at Delhi airport for an integrated retail development by Bharti
Realty Holdings Ltd. DIAL received Rs 3.15 billion as upfront fee, including real estate security deposit a nd bid
processing fee. The licence fee is determined as 20% of the revenue with minimum guaranteed payments.
The Airports Authority of India (AAI) leased 5,000 acres to DIAL (initially for 30 years). Of this, 245 acres can be
commercially exploited. DIAL monetised about 45 acres in 2009-10, for which it received Rs 14.7 billion as interest-
free security deposit, to be repaid after 57 years, and rental of about Rs 900 million per annum (Rs 20 million per
acre, with escalation of 5% per annum). DIAL plans to monetise the remaining 200 acres, mostly around the airport,
in phases, depending on market conditions.
Progress on land monetisation by MIAL has been slow

Similar to Delhi airport, AAI leased 2,000 acres to MIAL (initially for 30 years). Of this, about 10% (22 million sq ft)
was permitted for commercial exploitation. In August 2014, MIAL signed a commercial property development deal
with Oasis Realty to develop 1.17 million sq ft for Rs 5.8 billion. The land was sub-leased at Rs 5,000 per sq ft of
built-up area.
Previous under-recovery to get trued-up in second control period

DIAL reported under-recovery of aeronautical tariffs in the first control period (fiscals 2010 to 2014), despite 346%
hike in tariff, effective May 15, 2012, as revenue fell considerably short of targets. One reason for the shortfall was the
lower-than-expected passenger traffic.
AERA expected domestic and international passenger traffic at DIAL to clock 17.7% and 10.7% CAGR, respectively,
between fiscals 2012 and 2014. However, domestic passenger traffic declined at 2% CAGR with the economic
slowdown, while international passenger traffic rose at 9%.
CRISIL Research expects AERA to make up for any shortfall in the first control period revenue target during the
second control period, taking into consideration:
 Lower passenger traffic -- 100% true-up in the current control period

 Operating and maintenance expenses
 Cost of debt, subject to a certain ceiling. For instance, for MIAL, such a move would true-up the interest
costs to a ceiling of 11.5% for individual loan tranches. However, the ceiling can be reviewed by the
airport operator
 Weighted average cost of capital (WACC)
 Corporate taxes on aeronautical services
 Change in allocation mix of aeronautical and non-aeronautical assets, and
 Delay in tariff implementation
However, penalty, taxes and higher input costs, owing to change in levies/taxes, will not get trued-up.
A - 28
MIAL tariff for rest of second control period undergoes a dip
Tariff order for second control period released by AERA was implemented from November 1, 2016.
MIAL's project cost, budgeted at about Rs 98 billion at the time of the concession agreement, increased to Rs 124.45
billion because of additional works. However, for determining tariff for the second control period, the total project cost
was set at Rs 119.88 billion, after adjusting for DF disallowed by AERA.
Cost of equity was set at 16% and WACC at 11.78%. Returns from interest-free real estate security deposits were
not considered. The funding pattern of MIAL's total project cost is given as:
Note: The above means of financing is as per the first control period.
A - 29
M IAL : Fin an cials
Note: FY17 financials will be published once they are available

NA - Not available
DIAL’s tariff declines 89% due to the implementation of second tariff order
As per the second tariff order by AERA in December 2015, the tariff for Delhi airport was reduced by 89%, as the
airport has recovered significant amount of revenue for the second control period.
AERA finalised the hybrid-till model with 30% cross-subsidisation of non-aeronautical revenue to compute
aeronautical tariffs at DIAL for the first control period.
DIAL's project cost, budgeted at Rs 53 billion at the time of the concession agreement in April 2006, was raised to
Rs 125 billion, because of changes in the project scope, which included construction of Terminal 1D. The project was
funded through equity of Rs 24 billion, long-term debt of Rs 53 billion, lease deposits of Rs 15 billion raised against
a portion of land available for commercial development, and DF of Rs 34 billion.
AERA set the cost of equity at 16% and WACC at 10.33% for DIAL. Interest-free real estate security deposits were
not considered for calculation of cost of equity.
Note: DF is a pre-funding mechanism approved by AERA for major airport projects in the event of developer’s inability
to finance the project through other options, while UDF is charged to cover operating expenses.
A - 30
DIAL : Fin an cials
So u r ce : Co m p an y, CRISIL Re s e ar ch
A - 31
Greenfield airports
BIAL: Shift to new tariff model to lift revenue
The National Civil Aviation Policy, 2016, stipulates calculation of future tariffs at all airports on the basis of 30%
hybrid-till model. Under this policy, to determine aggregate revenue requirement (ARR), the Airports Economic
Regulatory Authority of India (AERA) has fixed post-tax cost of equity of 16% for Bengaluru International Airport Ltd
(BIAL), and the weighted average cost of capital (WACC) at 11.55% of total project cost, i.e. regulatory asset base
(RAB); factoring in increase in cost during project execution). Under the 30% hybrid-till model, 30% of non-
aeronautical revenue and 100% of aeronautical revenue will be considered to match the ARR, vis -a-vis 40% of non-
aeronautical revenue that is considered at present. Hence, potential total revenue for BIAL will increase by 10% of
non-aeronautical revenue from the second control period. A control period is a five-year tariff horizon provided
by AERA. The first control period was set in June 2014, with retrospective effect.
Until AERA introduced the hybrid-till model, aeronautical tariff at BIAL was determined on an ad-hoc basis. Owing to
the shift from single-till to hybrid-till model, the airport is estimated to have earned lower revenue of Rs 1,160 million
in the first control period. This under-recovery will also be incorporated in the second control period by AERA.
However, as the airport developer had not posted losses in fiscals 2010 and 2011, there was no shortfall during the
pre-control period to be considered for determination of aeronautical t ariffs in the current control period.
Cost of RAB increased due to widening of project scope

The project cost for BIAL, budgeted at ~Rs 14.1 billion at the time of commencement of construction, was raised to
Rs 19 billion as BIAL had to redesign the airport to accommodate a significant increase in traffic. The additional cost
was met through debt. Subsequently, project extension work totalling Rs 5.4 billion was also considered as project
cost, raising the overall cost to Rs 24.7 billion. This includes the cost of constructing hotels at the airport.
T o t al p r o ject co st an d m eans o f f inan ce
So u r ce : AERA
State financial support in the form of an interest-free loan specified in the state support agreement amounted to Rs
3,500 million, of which Rs 3,350 million was disbursed by the Karnataka government. The state financial support is
repayable in 20 equal half-yearly installments, with interest to be paid on delayed payments. The Karnataka
government and the Airports Authority of India (AAI) also infused equity of Rs 500 million each.
A - 32
Regulatory assets exclude BIAL's hotel business
RAB is a measure of the value of regulated assets. To calculate RAB, the aeronautical and non-aeronautical assets
of only the standalone entity have been considered. Also, while determining aeronautical tariff in the current control
period, no adjustment is required to be made to RAB, on account of land monetisation following development of a
hotel by BIAL.
During determination of tariffs, AERA decided not to consider Rs 765 million of interest -free security deposit and Rs
68.9 million of interest earned per annum on the hotel deposit for fiscals 2012 to 2014 as these were interest -
free. Hence, revenue from commercial exploitation of land can offer a potential upside, as it is not considered while
computing ARR (target revenue) to determine tariffs. BIAL received 4,008 acres on lease from the Karnataka
government. The lease rent payable is 3% per annum of the land cost (valued at Rs 1.75 billion) for seven years from
the time of commencement of operations of the airport, and 6% thereafter.
Out of 4,008 acres, BIAL has been able to monetise about 1,000 acres for commercial use. The airport also received
permission for a special economic zone (SEZ) in June 2008; however, there is no development yet on this front.
UDF at BIAL
BIAL charges UDF of Rs 1,226 per departing international passenger and Rs 306 per departing domestic passenger.
Stake sale by GVK in BIAL

In March 2016, BIAL's parent company (GVK) sold 33% stake in BIAL to Fairfax India for Rs 21 billion. Later, in June
2016, GVK exited the airport by transferring the residual 10% stake for Rs 13 billion to FairFax India Holdings
Corporation.
BIAL : Fin an cials
A - 33
GHIAL: First control period tariff continues
Although the first control period for GHIAL ended on March 31, 2016, AERA directed it to continue the existing tariff
for the next six months, or until determination of tariff for the second control period.
UDF restoration improved Hyderabad airport's revenue

Effective November 3, 2015, the Directorate General of Civil Aviation (DGCA) directed that UDF be restored at the
Hyderabad airport at Rs 430 per ticket for domestic and Rs 1,700 per ticket for international travel. As a
result, GHIAL's revenue improved significantly from the third quarter of fiscal 2016.
GHIAL was the only PPP airport, where AERA adopted a single-till model for the first control period (April 1, 2011 to
March 31, 2016). Under the single-till model, 100% of non-aeronautical revenue was considered for
determining aeronautical tariff, thereby reducing tariffs. Hence, GHIAL appealed against AERA's order. After various
hearings, the court directed the Ministry of Civil Aviation to pass an order on the appropriate method for tariff
determination. In June 2015, the ministry approved the hybrid-till model with 30% cross-subsidisation of non-
aeronautical revenue.
Zero UDF due to over-recovery squeezed revenue in fiscal 2015

Because of GHIAL's over-recovery compared with annual revenue requirement (ARR) for the first three years of the
first control period (April 1, 2011 to March 31, 2016), AERA reduced UDF charges from Rs 430 and Rs 1,700, per
departing domestic and international passenger, respectively, to nil for both, from April 1, 2014, to March 31, 2016.
Average return for the first three years of the control period stood at 20% against AERA's estimate of 16%. Removal
of UDF charges saw GHIAL's revenue drop 42% on-year to Rs 4 billion in fiscal 2015.
GHIAL airport commenced operations in 2008. However, AERA started the first control period from April 1, 2011, by
truing-up the shortfall in revenue from 2008 to 2011.
The project was executed at a total cost of ~Rs 29,200 million, of which, Rs 21,200 million was funded through loans
and Rs 8,000 million through equity and quasi-equity. This cost included the cost of constructing hotels and was
excluded while calculating WACC for the project
M e an s o f f un din g t h e p roject
So u r ce : AERA
A - 34
WACC was determined based on the cost of debt and equity.
Cost of debt: The actual cost of debt for fiscals 2012 and 2013 were considered by AERA for calculations for the
current control period. The government capped a rupee-term loan advanced to GHIAL at 12.5% and external
commercial borrowing at 8%.
Cost of equity: The Government of Andhra Pradesh provided GHIAL with an interest-free loan of Rs 3,150 million
towards the project, with a repayment period of 15-20 years after the airport commenced commercial operations.
The government also provided an advance development grant of Rs 1,070 million, which is considered as quasi-
equity. AERA fixed the post-tax cost of equity at 16% for GHIAL.
Real estate monetisation to unlock further potential

The Andhra Pradesh government leased 5,000 acres to GHIAL for an initial period of 30 years. A rent of 2% per
annum on the land cost of Rs 1.5 billion (base value) was payable starting from the eighth year of commercial
operations date (COD), i.e., March 2008. The base value would escalate at a CAGR of 5% from the eighth year of
COD.
Of the total leased land, 1,000 acres could be commercially exploited, of which 500 acres formed a special economic
zone (SEZ). GHIAL sub-leased 251 acres for developing an aviation-related SEZ, of which 14 acres were used to
establish a maintenance, repair and overhaul facility. It has also monetised about seven acres to construct a hotel
(Novotel). Hyderabad airport has leased ~17 acres to Amazon. It is also in the process of leasing another 33 acres
to a pharmaceuticals company.
GHIAL is expected to monetise the remaining land parcel based on market conditions. As revenue from commercial
exploitation of such land is outside the purview of tariff calculation, and given the sizeable quantum of land involved,
real estate monetisation can unlock huge returns for the developer.
A - 35
Regulatory assets exclude GHIAL's hotel and SEZ businesses
Aero and non-aero assets of only the standalone entity have been considered for calculation of RAB. RAB being a
measure of the value of a company's regulated assets used in price regulation, only assets used for providing
regulated services are taken into account.
As assets of the fully-owned subsidiaries of GHIAL - GMR Hotels and Resorts Ltd and GMR Hyderabad Aviation
SEZ Ltd - are also used by non-passengers, i.e., who are not integral to the airport's operations, these have not
been included in calculation of RAB. However, GHIAL's other subsidiary, Hyderabad Duty Free Retail Ltd, has been
included, as it is part of the airport terminal.
GHIAL: Financials
A - 36
New airports at Navi Mumbai, Goa and Bhogapuram to operate on hybrid-till
basis
GVK Group has been awarded the contract for the airport planned at Navi Mumbai. As per the National Civil Aviation
Policy, 2016, tariff determination for the Navi Mumbai airport will be on 30% hybrid-till basis. Also, the revenue share
offered by the airport operator has been finalised at 12.6%.
GMR Group has been awarded the contract for the planned airport at Goa. As per the National Civil Aviation Policy,
2016, tariff determination for the airport in Goa will also be on 30% hybrid-till basis. Revenue share offered by the
airport operator has been finalised at 37%.
Also, Airport Authority of India won the contract for the new greenfield airport at Bhogapuram under the PPP model
by offering a revenue share of 30.2%.
A - 37
Industry Information
1.0 Business of an airport B-1
2.0 Regulatory framew ork B-5
3.0 Benchmarking of airport B-9
4.0 Infrastructure required B-11
5.0 Factors that influence performance B-13
6.0 MRO B-15
7.0 Player Profiles B-18
B-I
B - II
Business of an airport
Business model of airports

Airports are critical enablers of the airlines industry. Though both are interdependent, their business models
are different. The airlines industry can respond to dynamic market conditions by moving quickly to increase or
decrease capacities through leasing, sale or retirement of aircraft. On the other hand, the capacities at the
airports cannot be augmented quickly as there is a minimum set-up time required to expand airport
infrastructure. Often, airport planning exercises are done from a 30-50-year view with expansion capabilities.
Over the last 20 years, airports globally have evolved from being government-controlled infrastructure
providers to profit-oriented service providers. Consequently, like any other corporation, airports experience
pressure from various stakeholders to operate efficiently and profitably. In India, private participat ion in
construction of airports began with the Cochin International Airport Ltd in the mid 1990s.
Bu s in e ss m o del o f an airp ort
S our c e : CRI S I L Re s e a r c h
Revenue sources
Aeronautical revenues
Aeronautical revenues consist largely of charges linked to the aeronautical services, which are integral to the
functioning of an airport. Aeronautical services include provisions for runways, taxiways and aprons, passenger
terminals, aircraft and freight facilities.
Airports levy user charges on airlines for the facilities they use. In India, user charges are regulated by the
Ministry of Civil Aviation and AAI. With the establishment of the Airport Economic Regulatory Authority (AERA),
the new airport regulator now decides on airport charges to be fixed for each airport, depending on the revenue
model, passenger traffic, quality of service and investment requirements at the airport.
B-1
Landing and airport tariff structures are regularly reported to the International Civil Aviation Organisation
(ICAO). These include all charges and fees related to air transport operations. The various user charges levied
by airports are:
 User Development Fee (UDF) - Levied on passengers by airport operators to provide and maintain
infrastructure services. UDF is charged to ensure fair return to the airport developers on the
investments made and for improving the viability of the airport's operations.
 Other charges: Landing, parking, security and hangar charges for aircraft
 Passenger and cargo fees: Passenger service fee is charged by the airlines and passed on to the
respective airport.
Non-aeronautical revenues
Non-aeronautical revenues come from activities other than the core business of an airport. These include
retailing, rentals, parking and concessions on food and beverages, etc. At most successful global airports,
non-aeronautical revenues form more than 50 per cent of total revenues and have been growing much faster
than aeronautical revenues, leading to superior operating profit margins for airport developers.
Non-aeronautical revenues are a key means to recover the significant capital expenditure that the developer
incurs on expanding terminals and airfields, given passenger traffic is expected to grow at a rapid rate. This
additional revenue stream is important for investors and creditors by enhancing the financial attractiveness
of airport investments. The development of non-aeronautical infrastructure at airports is referred to as city-side
development.
Re ve n u e m ix at in t ernatio nal airp orts ( 2015)
S our c e : Ai r por t w e bs i te s
B-2
The non-aeronautical revenues at Indian airport surged over the past few years, especially the ones under the
Public-Private Partnership (PPP) model. The growth in non-aeronautical revenues is mainly driven by
developing retailing and duty free shops.
Re ve n u e m ix at d o m est ic air po rts
AAI Re ve n u e M ix 2015-16
Note: AAI: Airports Authority of India

Financials for 2016-17 will be updated once the reports are available.
S our c e : Annua l Re por t
GM R Air p o rts 2015 - 16
Note: GMR controls Delhi International Airport Ltd (DIAL) and GMR Hyderabad International Airport Ltd (GHIAL)
S our c e : Com pa ny Re por ts , CRI S I L Re s e a r c h
B-3
Real estate monetization can offer strong upside
 During privatization, DIAL was allocated about 245 acres for commercial purposes as per the
concessionaire agreement. In this about 67 acres have already been monetised by the airport till 2016-
17.
 Similarly, MIAL was allocated about 200 acres for commercial purposes. Of this only 11 acres were
monetised by the airport till 2016-17.
 In case of Greenfield airports such as Hyderabad and Bangalore, 1000 acres were provided for each
airport. While Hyderabad airport monetised about 275 acres, Bangalore airport did not start the
monetisation of land parcel till 2016-17.
Aerotropolis
An aerotropolis is a new type of urban conglomeration that houses aviation-intensive businesses and related
enterprises under the same roof. An aerotropolis extends up to 25 km, outward from major airports. It is similar
in form and function to a traditional metropolis, which contains a central city core and its commuter-linked
suburbs. An aerotropolis has an airport city at its core and is surrounded by clus ters of aviation-related
enterprises.
Aerotropolises are powerful engines of local economic development, attracting air commerce-linked
businesses to areas surrounding major airports, analogous to the function of central business districts in the
downtown areas of major cities.
Aerotropolises typically attract industries related to time-sensitive manufacturing, e-commerce,

telecommunications, logistics, hotels, retailing, entertainment complexes and exhibition centers, and offices
for business people who travel frequently by air or engage in global commerce.
B-4
Regulatory framework
Regulatory framework for airport infrastructure industry

Airport infrastructure industry is governed by the Ministry of Civil Aviation, which is the apex body that
formulates policies and programmes. Four regulatory bodies operate under the ministry - Directorate General
of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), Airports Authority of India (AAI) and Airports
Economic Regulatory Authority (AERA). AERA is the new regulator of airports constituted in 2008.
Key developments under Final Civil Aviation Policy 2016 for airports
 Tariffs at all airports will be calculated on a 'hybrid till' basis by using 30% of non-aeronautical revenue
to cross subsidize aeronautical charges to ensure uniformity and level playing filed across all airport
operators.
 The government aims to implement the regional connectivity scheme (RCS) by reviving un-served or
under served airports.
Ministry of Civil Aviation

Ministry of Civil Aviation is the nodal agency that formulates national policies for the development and
regulation of civil aviation, and devises and implements schemes for the growth and expansion of air transport
in India. It oversees airport facilities, air traffic services and carriage of passengers and goods by air. The
ministry administers and implements the Aircraft Act, 1934.
Op e r at ion al h ierarch y
B-5
Directorate General of Civil Aviation
DGCA, the regulatory and developmental body for civil aviation, oversees air transport services to/from/within
India and enforces civil air regulations, air safety and airworthiness standards. It is headquartered in New Delhi
with Regional Airworthiness Offices in various parts of the country.
Key functions:
 Registration of aircraft
 Granting licences to pilots, air traffic controllers, aircraft maintenance engineers, flight engineers and
conducting examinations and checks for the same.
 Maintaining a check on the proficiency of flight crew and other operational personnel.
 Investigating accidents/incidents and taking preventive measures by formulation and implementing
safety aviation regulatory programmes.
 Promoting indigenous design of aircraft and aircraft components.
 Keeping a check on aircraft noise and engine emissions and collaborating with the environmental
authorities, if required.
 To act as a nodal agency for implementing provisions for the flexible use of air space by civil and
military air traffic agencies and interacting with the ICAO for provision of more civil air routes through
Indian air space and convening meetings of the National Facilitation Committee.
Bureau of Civil Aviation Security

The BCAS was initially set up as a cell within the DGCA in January 1978 on the recommendation of the Pande
Committee (constituted in January 1976). The BCAS was reorganised into an independent department on April
1, 1987 under the Ministry of Civil Aviation after the Kanishka air-bombing tragedy in June 1985. BCAS is
responsible for laying down measures in respect of security of civil flights at international and domestic airports
in India.
Key functions:
 Laying down aviation security standards in accordance with the Chicago Convention of the ICAO for
airport operators and security agencies.
 Monitoring the implementation of security rules and regulations, and carrying out survey of security
needs at airports.
 Ensuring that persons implementing security controls are appropriately trained and possess all
competencies required to perform their duties.
 Planning and coordinating matters related to aviation security.
 Conducting surprise checks to test the professional efficiency and alertness of the airport security staff.
 Conducting mock exercises to test the efficacy of contingency plans and operational preparedness of
the various security agencies.
B-6
Central Industrial Security Force
Till January 2000, security functions at all airports in the country were performed by police personnel
requisitioned from state governments. In the backdrop of Kandahar hijacking incident in December 1999,
airport security matters were reviewed by the Ministry of Civil Aviation. It was decided that to ensure effective
control and supervision by the ministry, security of airports should be entrusted to a single, dedicated force
instead of different state police forces with divergent work cultures and practices. The Committee of
Secretaries (CoS) in its meeting on January 7, 2000 recommended that in the long term, there was a need for
a more professionalised force for the industry. The Commissioner of Security (Civil Aviation) further
recommended that the Central Industrial Security Force (CISF) should be inducted at all airports in India. The
dedicated CISF contingent earmarked for security functions at airports in India has been notified as the aviation
security group (ASG).
The ASG is committed to provide a safe and secure environment at all the airports under its charge. The dual
objective of the ASG is to ensure that air travel is safe for all passengers. After the CISF was deployed at all
airports, there has been a marked improvement in all areas of airport security, including perimeter security,
access control, terminal building security, apron security, surveillance and passenger handling.
Airports Authority of India Ltd

The AAI was formed on April 1, 1995 by merging the International Airports Authority of India and the National
Airports Authority to accelerate integrated development, expansion, and modernisation of the operational,
terminal and cargo facilities at airports in India for conforming to international standards.
The AAI manages about 130 airports, it also participates in joint ventures (JVs) wit h private investors through
the public-private partnership (PPP) model. It has a revenue-sharing agreement with the developers that are
modernising the Mumbai and Delhi international airports.
The AAI also has a stake in revenues from greenfield airports developed through the PPP route. The regulator
exercises certain influence on the boards of airport developers as well, and provide them support to airport
operators. The AAI provides trained personnel for operation, maintenance and management of airports in
these countries.
Key functions
 Design, develop, operate and maintain international and domestic airports.
 Construction, modification and management of passenger terminals and provision of passenger
facilities and information systems at such terminals.
 Control and management of the Indian airspace extending beyond the territorial limits of the country,
as accepted by the ICAO. Air Traffic Control (ATC), an arm of the AAI, controls the landing and
departure of flights from airport control towers.
 Development and management of cargo terminals at international and domestic airports.
 Expansion and strengthening of operation areas, viz. the runways, aprons, taxiways, etc.
 Airport audit, commercial and cargo services: The AAI conducts an annual performance audit at all
airports. It provides a report on the economic viability of airport operations, which includes revenue
from non-aeronautical services. It also has integrated cargo complexes at various airports to aid fast
movement of perishable and non-perishable goods.
B-7
 Communication navigation surveillance (CNS)/air traffic management (ATM): The AAI provides
CNS/ATM service facilities and support systems for air navigation to synchronise with the ICAO's
approved plans. Besides, it provides air traffic management at various airports.
Airports Economic Regulatory Authority - regulator for tariff fixation

AERA is a statutory body constituted under the Airports Economic Regulatory Authority of India Act, 2008,
notified vide a gazette notification dated December 5, 2008. The AERA was established by the government in
2009 and is headquartered in New Delhi.
The AERA has been constituted to fix, review and approve the tariff structure for aeronautical services, monitor
pre-set performance standards at Indian airports, but with no regulation over army and paramilitary airports.
The prime objective of AERA is to create a level-playing field and foster healthy competition among all major
airports, encourage investment for building greenfield airports, protection of reasonable interest of fliers and
operate efficient, economic and viable airports.
Key functions
 To determine tariff for the aeronautical services
 To determine development fees to be charged at major airports
 To determine passengers service fees to be levied.
 To monitor set performance standards in airports relating to quality, continuity and reliability of service
as may be specified by the government or any authority authorised by it in this behalf.
 To perform such other functions relating to tariff structures for airport operators, as may be entrusted
to it by the government or as may be necessary to carry out the provisions of this Act.
Powers of AERA
 Penalise airports for failure to comply with its orders and directions of the AERA Act
 Penalise for offences by government departments
 Appeals on the AERA's rulings can be filed only in the Supreme Court
B-8
Benchmarking of airport
Key parameters in airport benchmarking

Airport benchmarking is statistical and accounting process that is used to monitor and compare the economic,
operational and service performance of an airport. Benchmarking assesses an airport's performance on
various parameters to measure the effectiveness of airport functions and identifies best practices that could
be incorporated into organisational procedures to increase efficiency, quality and customer satisfaction at
airports.
Key airport performance benchmarks
1. Traffic activity
 Total passengers (originating and connecting)

 Total cargo (mail and freight)
2. Physical infrastructure
 Land area, runways, taxiways, apron, terminals, gates

 Ticket counter, security and baggage
 Parking spaces
3. Aeronautical charges
 Landing and take-off fees

 Aircraft apron, parking and gate fees
 Aircraft fuelling fees and other ground handling fees
 Boarding gates and loading bridges
 Baggage processing / handling
 Passenger lounges
4. Non-aeronautical concession revenues
 Duty-free shopping
 Parking, rental cars
 Hotels, conference centres
 Shopping centres
 Food and beverages
 Advertising
B-9
5. Operating and maintenance costs
 Personnel costs (salaries and benefits)
 Communication and utilities costs
 Repairs and maintenance
 Other operating costs
6. Quality of airline service

 Number of airlines
 Airline routes and frequencies
 Aircraft types and fleet mix
 Airline competition and airfares
7. Other financials
 Debt (bonds and loans)
 Capital expenditure
 Other non-operating revenues
 Cash flow and liquidity
 Return on equity and assets
8. Quality of airport facilities and services

 Quality of experience while coming to the airport
 Quality of passengers processing (check-in, gate, customs, and immigration and security)
 Quality of airport commercial services
 Quality of airport physical facilities
B - 10
Infrastructure required
In f r ast ruct ure f acilities r equ ired at an airp ort
Terminal
Easy check-in, minimal queuing and comfortable shopping and waiting areas are key features of a terminal
building.
Apron
The apron has to provide sufficient space for taxing, parking, loading and unloading of aircraft during the peak
period as well as all the supporting facilities that are required to ensure that the aircrafts are handled efficiently.
Cargo complex
A dedicated bay in the terminal apron has to be earmarked for handling freight aircraft. A cargo complex is
essential to store, palletise and transfer cargo to and from the aircraft and to provide space for trucks to load
and unload their goods. On the airside, there should be space for the loading and unloading of cargo, together
with space to operate, store and maintain cargo-handling equipment. Space should also be designated for
storing container equipment and pallets.
Runway
An airport layout design should allow for multiple parallel runways within a site. There should be adequate
separation between two runways. This distance allows for safe, independent operations in accordance with
ICAO (International Civil Aviation Organization) guidelines and provides for optimum use of the area between
the runways for terminal and other commercial developments.
B - 11
Taxiways
The provision of a taxiway enables an aircraft to travel between the runway and the apron with minimal delay,
and permits the runway to operate to its maximum capacity. Also, a provision should be made for parallel
taxiways for faster movement. An airport taxiway system should include a parallel taxiway, rapid exit taxiways,
apron taxi lanes and isolation bays.
Aerodrome traffic monitor

An aerodrome traffic monitor, which is a small radar display that allows controllers to see the aircraft flying in
the airport's vicinity.
Air traffic control tower

Air traffic control tower controls the movement of aircraft in and around an airport. An air traffic control (ATC)
tower of appropriate height should provide a free line of sight from the control cabin to the operational areas
aircraft approaching the airport. The control cabin should be equipped with communication equipment,
consoles, etc.
Permanent control towers generally rise high above other buildings at an airport to give air traffic controllers a
view of aircraft moving on the ground and in the air around the airport, though temporary tower units may
operate from trailers or even through portable radios.
Services required at an airport

Flight catering: A location with convenient access to the airside road system for the in-flight catering supply
unit has to be identified.
Aviation fuel: Aviation fuel terminals store and supply fuel to aircrafts. Airports have to offer competitive
prices to airlines in order to attract more clients.
Ground handling: The airport should offer ground handling services to airlines at par with the best
international standards and competitive prices. A competitive environment among the selected third-party
ground handlers will ensure long-term quality, efficiency and innovation.
Retail & duty-free and food & beverage services: Travel retail plays a significant role in defining
passenger experiences at any airport. The commercial areas are integrated with the passenger waiting
areas, thereby increasing the footfalls of the travellers and visitors to the airport.
Airport lounge: The lounge should have dedicated areas for business and first class passengers with
adequate seating capacity.
Landside traffic: Strategic car parking management partners should be available to provide premium valet
services and manage the curbside traffic of the airport.
Business areas: Business parks and premium office space must be made available. In addition, business
lounges, hotels and other commercial areas must be available at the airport site.
B - 12
Factors that influence performance
Factors influencing performance of an airport

Location - Traffic growth is directly correlated to the revenue generation potential of an airport, as increased
traffic growth leads to higher aeronautical and non-aeronautical revenues. Traffic growth depends on
increasing economic activity and the development of tourism in regions around an airport. An airport's ability
to develop economic activity, in terms of cargo operations, commercial office spaces, hotels, retail outlets and
other aviation-related activities, will be crucial in increasing non-aeronautical revenues and overall profitability.
Congestion - The surge in air traffic affects the time taken at check -in counters, baggage screening and
delivery, entry/exit from the aircraft to the terminal building, immigration counters, customs services, and car
parking. The rapid increase in urbanisation in recent years has put airport infrastructure and services under
severe strain globally. Further, a rapid growth in the country's economy and population will result in higher
passenger traffic, which will exert additional pressure on existing airport infrastructure facilities. Airports
witnessing rapid growth in traffic need to invest considerably in infrastructure so as to maintain customer
satisfaction levels.
Capacity expansion at low costs - Controlling capital costs is a huge challenge for airport authorities as the
operations are asset-intensive and expensive. Airports need to be planned with a 30-50-year view to ensure
adequate availability of land for any large expansion plans, and modular expansion in case of smaller increase
in capacities. Over the next five years, CRISIL Research estimates investments of about Rs 410-430 billion
in the airport infrastructure sector. In many countries, it's difficult to expand the existing infrastructure or build
greenfield airports owing to political, regulatory and environmental oppositions. At the planning stage, airports
need to be planned effectively for the long term to ensure modular expansion capabilities at lower costs.
Regulatory environment - The Airports Economic Regulatory Authority (AERA), the regulator for airports in
India, is responsible for creating a level-playing field and fostering healthy competition among all major airports,
encouraging investment for building new airport infrastructure, regulating tariffs of aeronautical services,
protecting the interest of fliers and operating efficient, economically viable airports.
Airport operators have to maintain cordial relations with various government authorities as their cooperation is
very important in fixing tariffs for aeronautical services, funding of airport expansion projects and timely
completion of connectivity projects. Also, airport operators need to be proactive in explaining their point of view
to the authorities in fixing tariffs for all regulated charges and charges such as user development fees.
Competition - Airports compete with each other for higher passenger and cargo traffic, especially with the
emergence of low-cost carriers and increased cargo movement. Airports with higher percentage of transit
passengers can lure more airlines or passengers. Moreover, there can also be competition between airports
in the same city or close to each other. Rising competition could force airports to lower their charges to increase
passenger traffic, leading to an erosion in their margins. In certain situations, an increase in traffic may not be
able to offset lower ticket charges, especially for airports which operate at close to full capacity and need to
invest more to expand infrastructure. Airports also face competition from alternative modes like railways and
road transport.
B - 13
Relations with airline companies - Airports need to maintain a healthy relationship with airline companies.
Airports need to be flexible with the airline companies in terms of charges and fees, as the fragile financial
position of the latter can affect customer services. In addition, consolidation in the airlines industry can impact
flight capacities. Besides, there can also be situations where existing airlines seek to restrict expansion plans
to grab market share, through code-sharing agreements.
Financial availability and investments - Development of airport infrastructure is capital intensive,

characterised by long gestation periods. With the civil aviation industry growing rapidly, the requirement for
airports and funds for building the same have increased. If investments do not keep pace with airport
development plans, it may delay execution, escalate costs and lead to congestion at existing airports. Private
players have contributed to the development of a few major metro airports and their participation will be
important going forward. Once the necessary funds are linked to airport infrastructure needs, long-term
concerns with regards to investments can also be addressed. Ability of the management to fund the project in
a timely manner is crucial for success of an airport.
Facilities at an airport:
(i) Security check marked by waiting time and courtesy /helpfulness of security staff.
(ii) Terminal facilities includes signs and directions, flight information displays, quality and variety of food &
beverages, quality and variety of retail, etc
(iii) Experience of arriving at an airport includes appearance of gate area and terminal, signage leading to
baggage claim and ground transportation, restroom facilities, etc
B - 14
MRO
Maintenance, Repair and Overhaul (MRO)

Key Developments - Tax incentives for MRO
 During the Union Budget 2016-17, Government of India announced several benefits to MRO service
providers to boost the industry. These benefits include exemption of excise duty, custom duty,
countervailing duty for certain inputs procured by MRO.
 In the Final Civil Aviation policy announced in June 2016, Government indicated that it would persuade
the state governments to make value added tax (VAT) zero for MRO services. If this results in the
picking up of the MRO industry, there will be some foreign exchange savings for the country, as 90%
of the MRO activities of Indian airlines are carried outside India.
Overview
MRO activities are imperative for an aircraft, primarily because of safety reasons. Besides this, timely
maintenance checks help reduce repair costs and improve the overall efficiency of the aircraft.
Bu s in e ss m o del o f an M RO f acility at an air po rt
An airport would look at setting up an MRO facility in two ways:
As a landlord - The airport leases land to an MRO facility. Here, income for the airport developer would be in
the form of lease rentals. An upside in margins would be limited as the airport developer does not participate
in the MRO business.
As a Joint Venture (JV) partner - The airport provides land and infrastructure, and the JV (MRO) partner
brings in the technical expertise. Revenues are shared between both parties
B - 15
Types of safety check provided by MROs
Every aircraft in its lifecycle needs to go through series of checks for its smooth operation. An MRO facility
does a series of checks whose frequency varies from 2-3 months for interior, functional checks and
replenishment of consumable. After a period of 5-6 years of operation, the aircraft is taken to the hangar for
changes in equipment and testing of body for cracks.
T yp e s o f s afety ch eck
S our c e : I ndus tr y, CRI S I L Re s e a r c h
Capital expenditure and land requirements

The minimum investment required to set up an MRO facility at an airport is $60-100 million. The minimum land
area required is 15-20 acres. The break-even period for the facility depends on the number of aircrafts serviced
and the type of service rendered.
Bottlenecks
Land acquisition: The MRO facility must be ideally located near the airport. However, the procedure for
acquiring land is cumbersome and time-consuming, thereby discouraging many potential MRO players.
Unfavourable tax regime: The current tax regime is not conducive for growth of MRO facilities in India. The
MRO business in India attracts a 12.36 per cent service tax. It attracts customs duty on aircraft parts that are
imported for servicing. This takes a toll on the margins of an MRO business.
Lack of skilled manpower: Manpower for every segment in an MRO business is specialised and the
availability for the same in India is low.
B - 16
L is t o f s om e M RO co m p anies
S our c e : I ndus tr y, CRI S I L Re s e a r c h
B - 17
Player Profiles
GHIAL
GMR Hyderabad International Airport Ltd (GHIAL)
Key Developments
 In March 2017, the company announced its plans to raise Rs 16-20 billion, though issue of bonds,
having 10-year tenure.
 In May 2016, GHIAL had sought Airport Economic Regulatory Authority’s (AERA) approval for second
phase of expansion as the airport has already crossed the designed capacity of 12 million passengers
per annum (mppa). Afterwards in May 2017, the company announced a capex plan of about Rs. 25
billion towards the same, 70% of which will be funded through debt, while remaining through internal
accruals and equity.
Background
GMR Hyderabad International Airport Ltd (GHIAL) is a joint venture company promoted by the GMR Group in
partnership with the Airports Authority of India, the Andhra Pradesh state government and the Malaysia Airport
Holdings Berhad (MAHB). The company was incorporated to set up, operate and maintain the Rajiv Gandhi
International Airport at Shamsabad, Hyderabad in March 2008. The project is as per the Public Private
Partnership (PPP) model. As per the concession agreement between the Union Ministry of Civil Aviation and
GMR Hyderabad International Airport Ltd (GHIAL), 4% of gross revenues are to be shared with the AAI as
concession fees.
Sh ar e h old in g p at tern
Note: As of 2016-17
S our c e : Com pa ny
B - 18
In 2008, GMR consortium was given the mandate to design, finance (with government aid), build, operate and
maintain the HIAL greenfield airport for a period of 30 years, with a further option to extend it by another 30
years. The airport and other related facilities are spread across 5,495 acres. The first phase of airport
development became operational in March 2008 with a capacity to handle 12 million passengers and 0.10
million tonnes of cargo.
T ie - u ps w it h t h e service p roviders
S our c e : G HI AL w e bs i te
During 2016-17, the overall passenger traffic (domestic and international) at GHIAL rose by 21.6% on-year to
15.2 million. This high growth was mainly driven by the 26.6% y-o-y growth in the domestic passenger traffic
primarily due to low fares.
B - 19
Pas s e ng er t raffic h an dled ( d om estic an d in t ernatio nal)
S our c e : Ai r por t Author i ty of I ndi a (AAI )
Total freight traffic (domestic and international) handled by the airport increased by about 10% on-year to
124,100 tonnes in 2016-17, mainly due to a 14% on-year growth international freight led by rise in exports.
The domestic cargo too grew, albeit at a moderate pace of 5% on-year to 52,900 tonnes.
Car g o t r affic h an dled ( d om estic an d in t ernatio nal)
B - 20
T r e n ds in GHIAL ' s ae ro an d n o n- aero reven ues p er p asseng er
S our c e : Com pa ny r e por ts , CRI S I L Re s e a r c h
B - 21
Fin an cial p e r form ance
S our c e : Com pa ny P r e s e nta ti on
 GHIAL's overall revenues rose by 79.3% in 2016-17 due to a sharp 146.3% on-year increase in
aeronautical revenues. The growth was led by a 22% increase in passenger traffic and implementation
of User Development Fee (UDF) for the airport effective from Nov 3, 2015.
 Following a steep rise in revenues, EBITDA margins improved substantially by about 1400 bps to 73%
in FY 2016-17 as against 59% in FY 2015-16.
 As a result, the company recorded net profits of Rs. 4,343 million with PAT margin of 39% in FY 2016-
17.
B - 22
BIAL
Bengaluru International Airport Ltd

Key developments
 In March 2017, GVK finalised a deal to divest its remaining 10% stake in BIAL to Fairfax for Rs. 12.9
billion. The proceeds of the transaction will be utilized to clear its debt.
 Even though the second control period for BIAL has commenced in 2016-17, the implementation of
tariff order is delayed as AERA is yet to determine the tariff.
 As of April 2016, leveling of the land for the second runway began at Bengaluru airport. The project
cost for expansion of second terminal and runway is estimated to be about Rs 40 billion. As per the
plan, the construction of terminal 2 will be done in phases.The company plans to complete the Phase
I expansion by 2022 and increase the capacity by 20 million passengers and phase II is expected to
increase the capacity further by 15 million passengers.
 During March 2016, GVK group has signed an agreement to sell 33% stake to Fairfax India Holdings
Corporation for a consideration of Rs 21.49 billion. This transaction is in the process of various
approvals including lenders. A month later, Fairfax signed a deal to buy another 5% stake in BIAL from
Flughafen Zurich.
Background
Bengaluru Airport was renamed as Kempegowda International Airport on July 17, 2013. The new Bengaluru
airport replaced the old one built and run by Hindustan Aeronautics Ltd (HAL). Initially, private promoters
(Siemens, GVK and Unique Zurich) held a 74% stake while the Indian government holds the remaining 26%
stake (through the Karnataka State Industrial Development Corporation and Airport Authority of India). It is the
primary hub for Air Asia.
Sh ar e h old in g p at tern as o f M arch , 2017
S our c e : Com pa ny Re por ts
B - 23
GVK consortium was mandated to design, develop, finance, construct, operate and manage BIAL for 30 years
with an option to extend for a further 30 years. The airport and related facilities span more than 4,000 acres,
of which 462 acres have been reserved for commercial real estate development.
BIAL spent Rs 37 billion on developing the airport including the newly expanded Terminal 1. The Karnataka
government granted BIAL an interest-free loan of Rs 3,500 million, to be repayable from 11th years of
operations, for financing the project. The first phase of the project was completed in 2008 and the airport
started commercial operations in May 2008. BIAL shares 4% of its revenue with the AAI as concession fees.
Development Phase of Airport
The airport is being expanded in three phases:
Phase I: This included construction of a lounge, retail and concession spaces, and installation of new security
checkpoints at the arrival and departure gates.
Phase II: This included the full expansion of Terminal 1 (T1). Phases I and II were completed in December
2013, with the opening of the new T1A.
Phase III: This includes the construction of a new terminal (Terminal 2), a second runway, and an express
terminal building. The airport has received environmental clearance for this expansion and phase I of this
project is expected to be completed by 2022.
S our c e : BI AL w e bs i te
In 2016-17, overall passenger traffic (domestic and international) handled at the airport reached 22.9 million
reflecting an increase of 21% on-year. Overall cargo traffic (domestic and international) handled at the airport
grew by 9.4% to 319,344 tonnes, led by an increase in international air cargo.
B - 24
Pas s e ng er t raffic at BIAL
Car g o t r affic at BIAL
B - 25
Fin an cial s n ap sho t
Note: The full year financials of 2016-17 for BIAL are not available
For 2015-16, User Development Fees (UDF) for BIAL has been marginally reduced from 1,368 to Rs 1,226
per departing international passenger and from Rs 342 to Rs 306 per departing domestic passenger.
In 2015-16, overall revenue (domestic and international) increased sharply by 26% on-year primarily on
account of steep growth of 23.6% on-year in domestic passenger traffic. Following the revenue growth and
lower interest and depreciation costs, the company posted a net profit of Rs 4.6 billion 2015-16 compared to
Rs 0.6 billion in 2014-15.
B - 26
MIAL
Mumbai International Airport Ltd

Key Development
 In May 2017, as per the budget 2017, AAI has commenced the process of amendment of regulations
to ease the restrictions on land monetisation.
 In Feb 2017, GVK won the bid to build and operate NMIA.
 In December 2016, MIAL opens heavy cargo terminal. The new heavy cargo terminal is spread over
7,500 square metre, and can handle heavy, odd sized and bonded cargo mainly for the international
market.The heavy cargo includes machinery, non-perishable pharma, automobile, engineering
products, etc.
 In October 2016, Mumbai Airport has implemented second tariff order due to which UDF for the
domestic passengers has been zeroed from Rs 274 and for international passengers it is reduced to
Rs 227 from Rs 548. This is expected to impact the profitability of the airport as Aeronautical revenues
account for about 62% of the total revenues.
Background
Mumbai International Airport Pvt Ltd (MIAL) is a joint-venture company formed in May 2006 by GVK-led
consortium* and the Airports Authority of India (AAI) to develop, manage and modernize Chhatrapati Shivaji
International Airport in Mumbai. MIAL shares 39 per cent of its revenues with AA I. The airport spans over
roughly 2,006 acres. Almost a tenth of this total land is available to MIAL for commercial development, subject
to the Mumbai Metropolitan Region Development Authority (MMRDA's) approval. It is the primary hub for Jet
Airways and GoAir.
*GVK consortium comprised of GVK Airport Holding Pvt Ltd, ACSA Global Limited and Bid Services Division
(Mauritius) Ltd.
Note: Shareholding pattern as of March 2017

B - 27
In May 2006, GVK was given the mandate to operate, maintain, develop, design, construct, finance, upgrade
and modernize MIAL for 30 years, with a further option to extend it by 30 years.
The airport plans to develop commercial, retail and hotel assets over the monetizable real estate for which it
has already undertaken the preliminary demand assessment study. Land areas of Phase I and Phase II are
12.25 & 9.7 million square feet (mn sq ft) respectively. Both phases are likely to be completed by 2021.
The airport completed the construction of Terminal 2 in February 2014. Built in an area of over 439,000 square
meter, this terminal provides improved amenities with a state-of-the-art multi-level car parking. It also includes
a new taxiway and apron areas for aircraft parking designed to cater to the increased passenger traffic.
S our c e : CS I A
During 2016-17, the overall passenger traffic (domestic and international) handled at the airport reached
45.2 million passengers reflecting an increase of 8.4% on-year. Overall cargo traffic (domestic and
international) handled at the airport rose by 10.9% on-year to 782,289 tonnes in 2016-17, mainly due to rise
in international imports.
B - 28
Pas s e ng er T raffic
Fr e ig h t T r affic
B - 29
Note: The full year financials of FY16, FY17 for MIAL are not available
In H1 2015-16, MIAL's revenues grew by 12% y-o-y to 7.8 billion. Despite higher interest costs, net losses
have reduced to Rs 0.3 billion in H1 2015-16 compared to Rs 3.3 billion in H1 2014-15 owing to increase in
revenues.
B - 30
DIAL
Delhi International Airport Ltd

Key Development
 In July 2017, UDF for Delhi airport has been reduced to Rs 10 and Rs 45 for Domestic and International
Passengers from Rs 233-551 and Rs 519-1271 respectively. This will impact its profitability of DIAL,
as 70% of revenues comes from aeronautical segment.
 In March 2017, Delhi International Airport Pvt Ltd (DIAL), signed an agreement to allocate 1.11 acres
of land with Airbus for a period of 20 years to setup a flight simulator at the Aerocity Terminal District
of Indira Gandhi International Airport.
 In December 2016, DIAL engaged the UK's leading provider of air traffic management consulting
services, NATS, to identify procedures and air space enhancements to maximise the aircraft handling
capacity of the aerodrome.
 In October 2016, DIAL raised $522.6 million from the international bond market at 6.125%, to refinance
the outstanding rupee-term bank loan and bank external commercial borrowing. DIAL is the only
infrastructure project, to be funded by USD bond.
 In April 2016, DIAL announced its interest to monetize 22-25 acre of land and is in the advanced
stages of monetization.
Background
DIAL is a consortium of the GMR Group, Airport Authority of India, Fraport and Malaysia Airports Holding
Berhad (MAHB). In 2006, DIAL was given the mandate to operate, modernize, manage and develop the Indira
Gandhi International (IGI) Airport over a period of 30 years, with a further option to extend it by another 30
years. The airport is a primary hub for Air India and Indigo. DIAL shares 46% of its revenues with the Airport
Authority of India (AAI).
B - 31
Note: Shareholding pattern is as of March 2017

S our c e : De l hi I nte r na ti ona l Ai r por t Li m i te d (DI AL) w e bs i te
Besides upgrading the existing terminals, DIAL commissioned a new runway 11-29 at the airport on September
25, 2008. It inaugurated the new domestic departure terminal 1D (T1D) on February 26, 2009, which helped
to increase the capacity of domestic departures to 10 million passengers per annum.
The airport complex is spread over 5,000 acres, out of which, 4,750 acres are reserved for aeronautical
services, while around 250 acres will be utilised for non-aeronautical activities. The first phase of the
aerotropolis will require 45 acres. It will comprise 11 hospitality assets and 3 commercial assets. Of these, 4
hotels (JW Marriott, Lemon Tree, Red Fox and Holiday Inn) commenced operations last year in 2013-14.
The total capital expenditure incurred by DIAL for the first phase of the airport's modernisation was Rs 127.2
billion. Phase-1 was completed in March 2010, which included the upgradation of Terminal-1 and Terminal - 2
and development of a new Terminal - 3, which commenced operations in July 2010.
Another phase of the airport, with a passenger-handling capacity of 100 million and cargo-handling capacity
of 3.6 million is in the pipeline. With this, the passengers Terminal Building shall subsequently increase to 17.2
mn sq ft from 5.4 mn sq ft currently.
B - 32
Note: The above table is an indicative list of some of the major players under different service categories at the airport
S our c e : DI AL w e bs i te
In 2016-17, overall passenger traffic (domestic and international) increased by 19.2% on-year to 57.3 million
mainly driven by domestic passenger traffic. Domestic passenger traffic grew strongly by 23.1% on account of
improvement in economy and aggressive discounting. International passenger traffic also grew by 9.5% on-
year during the year. Total cargo traffic (domestic and international) handled at the airport increased by 9% in
2016-17 to 857,400 tonnes.
B - 33
Pas s e ng er t raffic
Fr e ig h t t r affic
B - 34
T r e n ds in DIAL ' s aero an d n on -aero r evenu e p er p asseng er ( pax)
User Development Fee (UDF)
In July 2017, UDF at Delhi airport has declined due to the implementation of second tariff order issued by
AERA. As per the order
 There would be no UDF charged on arriving passengers for both domestic as well as international
 In case of departing passengers, UDF will be as follows:
S our c e : Di r e c tor G e ne r a l of Ci v i l Av i a ti on
In case of passengers who booked the ticket on or before July 7, 2017, but are yet to commence travel,the
airline will refund the excess amount, if any, to passengers without waiting for such claim from the passengers.
Domestic passengers who have travelled out of Delhi airport are entitled to claim a refund between Rs. 235-
480, depending on the distance of the journey. Inbound travellers are entitled to claim Rs . 207-415 from their
respective airlines. For international passengers departing from Delhi airport, the refund will be in the range of
Rs 520-1,086 and arriving passengers can claim Rs 462-933. However, passengers who have completed their
journey on fares with higher airport charges after July 7 need to claim a refund within 45 days for domestic
travel and 60 days for international travel out of Delhi airport.
B - 35
In 2016-17, DIAL's net revenue rose by 17% on-year. DIAL's aeronautical revenue increased by 15.4%
primarily driven by 19% growth in the overall traffic at the airport. The non-aeronautical revenue at the airport
increased by 12.6% during the same period.
B - 36
CIAL
Cochin International Airport Ltd

Key developments
 In February 2016, the airport inaugurated Terminal 3 with a built-up area of 1.5 million sq ft and a
capacity to handle 4000 passengers during peak hours. The project is constructed with a cost of about
Rs 10 billion and is completed in 2 years.
 In August 2015, 12 MWp solar power plant comprising 46,150 solar panels laid across 45 acres near
the cargo complex was inaugurated at Cochin airport, making it the first airport in the world that is fully
operated on solar power. Cochin airport generates around 52,000 units of power per day. The excess
goes to Kerala State Electricity Board (KSEB) grid from where it buys back power for use at night.
Background
Cochin International Airport Ltd (CIAL) also known as Nedumbassery Airport began operations in 1999.
The airport was built under a Public-Private Partnership with equity participation from the Kerala government,
industrialists, non-resident Indians, financial institutions, airport service providers and the public. As per 2014
shareholding, Government of Kerala holds the majority stake with 32 per cent.
The total project cost of the airport is around Rs. 3,150 million and it is spread over 1,300 acres utilised for
airport facilities as well as for aviation and city infrastructure around the airport. The project is financed through
a term loan of Rs. 2,180 million and the remaining through equity.
There are two separate centrally air-conditioned terminals for domestic and international operations measuring
a total area of around 4.5 lakh sq.ft. Its domestic terminal is capable of handling 400 incoming and 400 outgoing
passengers per hour while International terminal has a capacity to handle 1200 incoming & 1200 outgoing
passengers.
T ie - u p s w ith service p ro vid ers
S our c e : Com pa ny r e por ts
B - 37
During the year, passenger traffic (domestic and international) handled at the airport increased by 22 per cent
in 2015-16 to 7.7 million passengers. Overall cargo traffic (domestic and international) grew by 12.7 per cent
to 79,832 tonnes.
S our c e : Ai r p or t Author i ty of I ndi a (AAI )
CIAL ' s aero an d n on -aero r evenu es p er p assenger
B - 38
During 2015-16, CIAL's revenues grew by 26 per cent y-o-y largely on account of a 28% y-o-y increase in aero
revenues. Following the growth in revenues, net profit also increased by 21% y -o-y in 2015-16.
B - 39
AAI
Airports Authority of India Ltd

Key developments
 In Jan 2016, Airports Authority of India announced that the private sector will soon be undertaking the
management of airport terminals in Ahmedabad and Jaipur. Tenders for airport terminal management
at Jaipur and Ahmedabad have already been released for a period of 15 years.
 In May 2016, Airports Authority of India announced an Rs 150 billion investment outlay over the next
4 years to develop and upgrade airports. These airports include Chennai, Patna, Guwahati, Srinagar,
Jammu, Lucknow, Jaipur, Amritsar, Raipur, Ahmedabad and others.
 In October 2016, Airports Authority of India has created a wholly owned subsidiary AAI Cargo Logistics
and Allied Services Company Ltd (AAICLAS). It will provide ground handling, documentation, transport
services for carriage of bonded and non-bonded cargo and screening services and related value added
services at airports in India and abroad.
 In July 2016, Airports Authority of India signed an agreement with Uttar Pradesh government to
develop the airports of Agra, Allahabad, Bareilly, Kanpur, Moradabad, Meerut and Faizabad under the
regional connectivity scheme.
Background
The Airports Authority of India (AAI), an organization under the Ministry of Civil Aviation, was formed on April
1, 1995. International Airports Authority of India and the National Airports Authority were merged with a view
to accelerate the development, expansion, modernisation and management of civil aviation infrastructure both
on the ground and air space in the country.
Key functions
 Design, develop, operate and maintain the airports.

 Construct, modify and manage passenger and cargo terminals.
 Control and manage Indian airspace extending beyond the territorial limits of the country, as accepted
by the ICAO.
 Expand and strengthen operation areas, viz. the runways, aprons, taxiways, etc
 Provide visual, communication and navigation aids.
 Conduct annual performance audit of all airports, providing reports on economic viability of airport
operations.
Most of AAI's revenue is generated from route navigation facilities provided over the Indian airspace, landing/
parking fees and terminal navigational parking charges. The AAI manages 18 international airports, 7 custom
airports and 78 domestic airports and 26 Civil enclaves at Defense airfields. The body also provides air
navigation services over 2.8 million square nautical miles (NM) through ground installations at all airports and 9
other private airports that are not managed by AAI namely Bangalore, Hyderabad, Cochin, Lengui, Diu, Latur,
Mundra, Nanded and Sathya Sai Puttaparthy. The organization has also been involved in various consultancy
B - 40
projects with Libya, Algeria, Yemen, Maldives, Nauru and Afghanistan. It also provides trained personnel for
operation, maintenance and management of airports in these countries.
The AAI has active participation in the joint ventures (JVs) with private investors through the Public-Private
Partnership (PPP) model. It has a revenue-sharing agreement with the developers who modernised
brownfield airports at Mumbai and Delhi international airports. It also has a stake in revenues with the
developers of greenfield airports like Bengaluru and Hyderabad through the PPP route. The regulator is also
on the boards of certain airport developers.
List of 35 non-metro airports modernised by AAI
The government's Committee on Infrastructure (COI), at its 12th meeting held on June 8, 2006 approved the
modernisation of 35 non-metro airports. Modernisation at 34 airports has been complete, the work at Khajuraho
airport was completed recently in May 2015.Recently, in October 2016, the integrated terminal at Vadodara
has been inaugarated.
B - 41
Fin an cial s n ap sho t
Note: 2015-16 financials are not updated as latest annual reports are not yet available
*Airport Lease revenue is received from DIAL (Delhi Intern ational Airport Limited) and MIAL (Mumbai International Airport Limited).
S our c e : Com pa ny Annua l Re por t
B - 42
NMIA
Navi Mumbai International Airport

Key developments
 In February 2017, GVK Power and Infrastructure has won the bid to build and operate NMIA.
 In June 2016, Infrastructure Company, Gayatri projects wins an Rs 7 billion contract towards land
development of Navi Mumbai International Airport (NMIA).
 Our interactions with industry participants indicate that most of the land acquisition issues for Navi
Mumbai airport have been addressed. City and Industrial Development Corporation (CIDCO) stated
that the affected families have been entitled for compensation of an additional 10% developed land
with 2.5 floor space index (FSI), over and above the 12.5% of developed land (at 1.5 FSI) initially
offered. The plots are proposed in a new township situated in the vicinity of the airport.
Background
As per the Detailed Project report released by City and Industrial Development Corporation of Maharashtra
Ltd (CIDCO) passenger traffic at Mumbai Metropolitan Region (MMR) is expected to be about 40 million by
2016-17 and reach over 100 million by 2030-31. This projection implied that the existing airport in Mumbai
would be unable to handle such an increase in air traffic, thereby, making a second airport in the MMR a crucial
requirement.
The Navi Mumbai International Airport (NMIA) is proposed to be developed through Public Private Participation
(PPP). A special purpose vehicle (SPV) will be formed in which CIDCO & its nominees (including project
affected persons) will hold 26% of paid up equity and the rest will be held by the private developer. In May
2015, City and Industrial Development Corp. of Maharashtra Ltd (CIDCO) agreed to sell at least 5 per cent
stake of Navi Mumbai International Airport to the Airports Authority of India.
The Ministry of Civil Aviation approved 30% 'shared till' for NMIA which indicates 30 per cent cross -
subsidisation of non-aeronautical revenues for computing aeronautical tariffs at airport.
B - 43
M ajo r m ilesto nes
S our c e : CI DCO , CRI S I L Re s e a r c h
Pr o je ct d etails
S our c e : CI DCO , CRI S I L Re s e a r c h
B - 44
Industry statistics
1.0 Domestic C-1
2.0 International C-9
C-I
C - II
Domestic
Passenger traffic
Do m e s tic p assen ger t raf fic (m illio n)
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Metro airports
MUMBAI 20.00 21.04 20.28 21.88 25.21 30.05 32.71
DELHI 20.67 25.13 22.80 24.20 27.45 34.27 42.21
CHENNA I 7.80 8.62 8.31 8.36 9.59 10.34 13.15
BANGALORE 9.37 10.34 9.49 10.23 12.47 15.60 19.28
KOLKATA 8.20 8.74 8.52 8.34 8.99 10.51 13.54
HYDERABAD 5.71 6.52 6.15 6.21 7.61 9.23 11.73

Total 71.75 80.39 75.55 79.21 91.31 110.00 132.62
Non-m etro airports
AGARATALA 0.75 0.84 0.79 0.82 0.88 0.92 1.18
AHMEDABAD 3.22 3.95 3.34 3.57 3.83 4.91 5.62
AMRITSAR 0.30 0.49 0.55 0.72 0.75 0.89 1.03

AURANGABAD 0.27 0.40 0.44 0.44 0.42 0.30 0.32
BAGDOGRA 0.65 0.71 0.64 0.69 1.02 1.05 1.52
BHOPAL 0.32 0.42 0.49 0.43 0.41 0.66 0.67
BHUBANESWAR 1.04 1.25 1.39 1.34 1.49 1.88 2.30
CALICUT 0.23 0.23 0.31 0.29 0.30 0.37 0.44
CHANDIGA RH 0.65 0.80 0.88 1.05 1.21 1.53 1.75
COCHIN 1.98 2.13 1.96 2.11 2.66 3.10 3.95
COIMBATORE 1.14 1.24 1.19 1.12 1.31 1.56 1.96
DEHRA DUN 0.00 0.00 0.24 0.31 0.38 0.47 0.88
DIBRUGARH 0.23 0.23 0.23 0.25 0.32 0.32 0.31
GAYA 0.00 0.02 0.02 0.02 0.03 0.05 0.06
GOA 2.50 2.94 2.89 3.15 3.90 4.73 6.05

GUWAHATI 1.92 2.22 2.06 2.17 2.21 2.75 3.76
IMPHAL 0.56 0.73 0.67 0.63 0.61 0.77 0.89
INDORE 0.88 1.11 1.08 1.11 1.35 1.69 1.78
JAIPUR 1.41 1.60 1.57 1.72 1.86 2.52 3.33
JAMMU 0.69 0.89 0.86 0.85 0.95 1.12 1.16
JODHPUR 0.14 0.21 0.26 0.30 0.30 0.30 0.35
JUHU 0.05 - - - 0.16 0.17 0.17
LEH 0.26 0.37 0.35 0.33 0.40 0.41 0.56
LUCKNOW 1.24 1.66 1.64 1.87 2.07 2.65 3.31
Continued...
C-1
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
MADURAI 0.39 0.51 0.53 0.54 0.49 0.58 0.71
MANGALORE 0.59 0.63 0.76 0.84 0.83 1.01 1.03
NAGPUR 1.20 1.38 1.22 1.22 1.36 1.52 1.78
PATNA 0.84 1.02 1.00 1.05 1.20 1.58 2.11
PORTBLA IR 0.58 0.61 0.70 0.76 0.82 0.87 1.24
PUNE 2.75 3.23 3.23 3.50 4.07 5.18 6.54
RAIPUR 0.53 0.80 0.81 0.84 0.93 1.21 1.40
RAJKOT 0.23 0.26 0.28 0.31 0.36 0.41 0.41
RANCHI 0.36 0.49 0.46 0.51 0.65 0.73 1.03
SILCHAR 0.16 0.21 - - 0.19 0.20 0.21
SRINAGAR 1.04 1.63 1.84 1.99 2.03 2.30 2.09
TIRUPATI 0.17 0.24 0.29 0.27 0.24 0.37 0.49
TRICHY 0.09 0.12 0.10 0.12 0.10 0.15 0.17
TRIVANDRUM 0.68 0.98 0.99 0.99 1.08 1.20 1.57
UDAIPUR 0.37 0.37 0.36 0.44 0.46 0.71 1.09
VADODARA 0.60 0.67 0.68 0.69 0.71 0.93 1.10
VARANASI 0.50 0.68 0.74 0.74 0.96 1.31 1.81
VISAKHAPATNA M 0.71 0.96 0.98 0.94 1.04 1.68 2.24
VIJAYAWADA - - - - 0.23 0.40 0.61
LENGPUI(A IZWAL) - - - - 0.16 0.00 0.00
RAJAHMUNDRY - - - - 0.15 0.22 0.26
BHUJ - - - - 0.14 0.15 0.19
SURAT - - - - 0.14 0.09 0.19
JABALPUR - - - - 0.10 0.15 0.17
BELGAUM - - - - 0.08 0.13 0.10
TUTICORIN - - - - 0.08 0.09 0.10
JAMNAGAR - - - - 0.08 0.08 0.08
BHAVNAGAR - - - - 0.07 0.04 0.02
KHAJURAHO - - - - 0.07 0.06 0.06

GUGGAL(KANGRA) - - - - 0.06 0.08 0.11
ALLAHABAD - - - - 0.05 0.06 0.05
DIMAPUR - - - - 0.05 0.11 0.14
JORHAT - - - - 0.04 0.05 0.06

HUBLI - - - - 0.03 0.04 0.03
AGATTI - - - - 0.03 0.03 0.03
DIU - - - - 0.02 - -
Continued...
C-2
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
GORKHPUR - - - - 0.02 0.01 0.05
PORBANDAR - - - - 0.02 0.02 0.00

AGRA - - - - 0.01 0.01 0.01
BHUNTAR - - - - 0.01 0.02 0.03
BARAPANI (SHILLONG) - - - - 0.01 0.01 0.01
GWALIOR - - - - 0.01 0.01 0.02
MYSORE - - - - 0.01 0.00 0.00
LAKHIMPUR (LILABARI) - - - - 0.00 0.01 0.01
PANTNAGAR - - - - 0.00 0.01 0.01
SHOLAPUR - - - - 0.00 - -
KANPUR( Chakeri) - - - - 0.00 0.00 0.00
PONDICHERRY - - - - - 0.01 0.00
TEZPUR - - - - - 0.01 0.01
CUDDA PAH - - - - - 0.00 0.00
Total 32.22 39.24 38.83 41.00 48.02 58.98 72.75
Other Airports 1.55 1.87 1.99 2.08 0.00 0.21 0.26
Grand Total 105.52 121.51 116.37 122.30 139.33 169.19 205.64
C-3
Freight traffic
Do m e s tic f reig ht ( in t o nn es)
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Metro airports
MUMBAI 199,831 190,288 182,422 181,101 207,720 209,003 234,917
DELHI 209,113 200,525 188,176 215,846 271,763 295,107 298,357
CHENNA I 93,336 84,730 78,774 71,679 81,432 84,872 91,191
BANGALORE 87,515 83,256 82,546 91,658 112,687 114,646 119,878
KOLKATA 84,861 81,703 79,796 84,300 88,896 91,350 96,116
HYDERABAD 36,390 34,472 33,510 37,389 43,876 50,455 52,936
Total 711,046 674,974 645,224 681,973 806,374 845,433 893,395

Non-m etro
airports
AGARATALA 7,105 6,889 5,816 6,603 5,681 5,456 6,057
AHMEDABAD 15,060 19,964 35,345 35,932 41,786 44,317 45,552
AMRITSAR 161 89 88 129 312 224 381
AURANGABAD 1,841 1,227 724 843 1,250 1,406 1,436

BAGDOGRA 1,114 1,672 1,238 1,795 2,232 4,227 3,613
BHOPAL 1,175 890 965 867 937 1,153 904
BHUBANESWAR 2,667 2,286 3,325 4,022 5,950 7,002 8,239
CALICUT 282 191 356 164 340 349 802
CHANDIGA RH 582 3,042 2,538 3,315 5,065 4,559 5,697
COCHIN 8,610 8,533 8,873 9,613 11,076 12,097 13,909
COIMBATORE 6,637 7,281 6,097 6,115 7,442 6,720 8,989
DEHRA DUN - - - - 43 94 268
DIBRUGARH 322 343 309 272 336 389 543
GOA 4,247 4,016 2,573 2,752 3,288 3,379 2,938
GUWAHATI 8,520 7,761 5,919 7,871 10,445 15,617 17,283
IMPHAL 6,002 4,984 3,964 4,101 4,467 4,266 4,720
INDORE 5,380 4,734 4,734 4,801 6,315 6,992 7,668
JAIPUR 8,177 6,475 6,488 6,460 2,544 7,912 13,503
JAMMU 1,371 1,265 1,488 1,623 1,685 1,681 2,242
JODHPUR 20 41 18 19 12 13 8
JUHU 116 - - - 407 381 372
LEH 1,426 1,336 1,136 1,080 1,339 1,442 1,665
LUCKNOW 3,492 3,690 2,290 3,084 3,400 2,301 2,336
Continued…
C-4
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
MADURAI 580 842 1,050 1,204 1,073 908 1,028
MANGALORE 305 267 292 280 349 370 492

NAGPUR 9,145 4,588 4,800 5,108 5,595 5,958 6,726
PATNA 3,279 3,425 2,251 4,849 5,198 4,414 6,591
PORTBLA IR 2,299 2,386 2,206 2,687 3,046 3,842 4,655
PUNE 27,828 24,134 19,861 21,135 27,390 31,765 35,312
RAIPUR 2,356 2,870 2,346 3,355 3,951 4,353 4,561
RAJKOT 933 738 303 157 134 170 244
RANCHI 1,306 1,650 1,530 2,491 3,410 3,997 4,653
SILCHAR 480 497 - - 415 443 312
SRINAGAR 2,016 2,361 3,027 3,722 5,853 5,394 4,882
TIRUPATI 12 26 16 - 6 - -
TRICHY - - - - - 3 19
TRIVANDRUM 1,540 1,449 1,490 1,794 1,173 957 1,508
UDAIPUR - - - - 35 54 26
VADODARA 2,099 2,282 1,970 2,052 2,063 2,144 2,973
VARANASI 422 356 303 404 661 956 1,052
VISAKHAPATNA M 1,107 1,046 1,644 1,823 1,244 2,935 4,708
VIJAYAWADA - - - - - - 2
LENGPUI(A IZWAL) - - - - 266 - -
RAJAHMUNDRY - - - - 3 4 -
BHUJ - - - - 17 23 30
SURAT - - - - - - 2
JABALPUR - - - - - - 20
TUTICORIN - - - - 52 67 58
JAMNAGAR - - - - 169 80 48
BHAVNAGAR - - - - 1 1 -
DIMAPUR - - - - 174 203 398
JORHAT - - - - 14 16 66
AGATTI - - - - 3 2 2
PORBANDAR - - - - - - 1
Total 140,014 135,626 137,373 152,522 178,647 201,036 229,494
Other Airports 1,170 1,491 1,605 1,593 0 286 730
Grand Total 852,230 812,091 784,202 836,088 985,021 1,046,755 1,123,619
S our c e : Air por t Author i ty of I ndi a (AAI )
C-5
Aircraft movement
Do m e s tic Aircraft M o vem ent s ( In No s .)
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Metro airports
MUMBAI 173,982 179,305 173,252 188,306 195,370 220,253 224,896
DELHI 180,791 218,554 200,311 204,581 215,079 255,038 297,451
CHENNA I 78,567 86,592 83,316 86,549 87,761 89,767 111,331
BANGALORE 95,896 100,803 86,302 98,420 112,643 130,600 153,249
KOLKATA 80,433 84,316 79,597 76,909 80,859 84,477 105,617
HYDERABAD 68,830 84,892 74,787 70,922 75,696 85,079 108,452
Total 678,499 754,462 697,565 725,687 767,408 865,214 1,000,996
Non-m etro airports
AHMEDABAD 28,445 34,911 32,405 34,687 30,621 36,779 38,762
GOA 19,988 23,560 22,725 24,478 29,117 34,604 42,698
TRIVANDRUM 8,213 11,708 10,642 9,631 8,916 9,692 12,473
AGARATALA 9,729 9,958 9,042 8,066 7,612 7,158 8,899
AMRITSAR 4,757 5,660 6,293 7,539 6,825 6,802 7,600
AURANGABAD 3,998 4,993 4,378 4,040 4,101 3,675 3,763
BAGDOGRA 7,655 7,902 6,828 7,706 9,448 8,313 11,227
BHOPAL 6,064 7,348 7,632 7,414 5,361 7,733 6,909
BHUBANESWAR 11,788 14,672 13,883 11,752 12,506 14,032 17,071
CALICUT 2,884 2,700 3,639 2,676 3,099 3,474 3,585
CHANDIGA RH 7,751 8,545 9,960 9,690 10,968 13,130 14,720
COCHIN 21,882 21,877 19,867 22,893 25,859 26,050 32,164
COIMBATORE 13,423 13,710 12,006 12,400 16,760 16,982 19,710
DEHRA DUN - - 3,744 4,078 4,840 4,962 9,485
DIBRUGARH 3,284 2,144 2,163 2,328 3,992 3,213 2,755
GAYA 2 312 457 472 598 748 857
GUWAHATI 26,715 27,636 26,522 26,604 26,397 28,913 37,383
IMPHAL 7886 8,366 6990 5340 4796 6074 6594
INDORE 11,726 13,663 13,798 13,749 14,342 14,836 14,374
JAIPUR 12,716 16,733 16,460 17,771 17,110 21,109 28,498
JAMMU 8,842 10,210 10,572 9,916 10,065 10,766 10,852
JODHPUR 2,114 3,088 3,096 2,988 3,058 2,976 3,732
JUHU 6,727 - - - 22,251 23,215 22,980
LEH 2,564 3,572 3,071 3,002 3,462 3,434 4,904
LUCKNOW 11,867 15,898 15,632 16,758 16,745 20,347 24,540
MADURAI 5,763 5,761 6,232 6,484 5,929 7,474 9,459
MANGALORE 6,926 6,811 7,264 8,607 8,406 9,337 10,294
NAGPUR 14,533 14,834 12,960 12,510 13,498 12,576 14,656
Continued...
C-6
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
PATNA 9,541 10,356 9,956 9,900 11,054 13,944 15,508
PORTBLA IR 7,068 7,751 8,668 8,453 9,642 10,116 12,504
PUNE 20,838 26,134 26,868 29,506 32,642 38,682 44,886
RAIPUR 7,484 10,411 10,496 9,279 8,425 10,185 11,280
RAJKOT 2,210 2,335 2,823 2,911 3,344 4,674 4,610
RANCHI 4,508 6,464 5,246 6,531 7,592 6,552 8,971
SILCHAR 4,426 4,790 - - 3,110 3,586 3,205
SRINAGAR 9,016 12,187 13,985 15,158 14,698 16,228 15,467
TIRUPATI 2,274 3,080 3,652 2,970 2,983 5,264 6,612
TRICHY 1,318 2,968 1,899 2,806 1,916 2,168 2,429
UDAIPUR 6,224 5,960 4,964 5,636 5,594 7,453 9,084
VADODARA 5,478 6,380 6,123 6,489 5,634 7,339 8,330
VARANASI 5,036 6,579 6672 6880 7926 10827 14019
VISAKHAPATNA M 11,782 15,402 14,235 9,888 10,348 15,078 18,031
VIJAYAWADA - - - - 4,639 6,676 10,134
LENGPUI(A IZWAL) - - - - 2,899 - -
RAJAHMUNDRY - - - - 7,101 6,641 7,846
BHUJ - - - - 1,816 1,834 1,861
SURAT - - - - 2,219 2,569 4,611
JABALPUR - - - - 1,718 2,426 3,048
BELGAUM - - - - 1,604 2,081 1,592
TUTICORIN - - - - 1,388 1,378 1,520
JAMNAGAR - - - - 754 760 730
BHAVNAGAR - - - - 1,440 1,529 1,462
KHAJURAHO - - - - 812 766 762
GUGGAL(KANGRA) - - - - 1,258 1,550 1,841
ALLAHABAD - - - - 1,020 1,010 856
DIMAPUR - - - - 598 2,307 2,251
JORHAT - - - - 702 776 774
HUBLI - - - - 585 902 648
AGATTI - - - - 2,178 2,074 1,870
DIU - - - - 692 - -
GORKHPUR - - - - 444 242 909
PORBANDAR - - - - 1,417 696 457
AGRA - - - - 502 253 283
BHUNTAR - - - - 1,001 1,138 898
Continued...
C-7
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
BARAPANI
- - - - 432 500 570
(SHILLONG)
GWALIOR - - - - 302 274 381
MYSORE - - - - 190 126 33
LAKHIMPUR
- - - - 252 334 420
(LILABARI)
PANTNAGAR - - - - 138 332 464
SHOLAPUR - - - - 80 - -
KANPUR( Chakeri) - - - - 112 40 146
PONDICHERRY - - - - - 308 6
TEZPUR - - - - - 286 316
CUDDA PAH - - - - - 66 227
Total 365,445 417,369 403,848 409,986 489,883 550,374 642,796
Other Airports 49,621 63,529 63,489 64,972 325 4,333 4,500
Grand Total 1,093,565 1,235,360 1,164,902 1,200,645 1,257,616 1,419,921 1,648,292
Note: Figures since November 2010 are available

C-8
International
Passenger traffic
In t e r natio nal p assen ger t raf fic (m illio n)
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Metro airports
MUMBAI 9.08 9.70 9.93 10.34 11.43 11.62 12.44
DELHI 9.28 10.75 11.57 12.68 13.53 14.15 15.50
CHENNA I 4.25 4.31 4.46 4.54 4.71 4.88 5.21
BANGALORE 2.22 2.35 2.50 2.63 2.93 3.37 3.60
KOLKATA 1.43 1.57 1.65 1.77 1.93 2.16 2.25
HYDERABAD 1.89 1.93 2.15 2.44 2.80 3.16 3.37
Total 28.14 30.61 32.26 34.40 37.33 39.34 42.36
Non-m etro airports
AHMEDABAD 0.83 0.74 0.82 1.00 1.22 1.57 1.79
AMRITSAR 0.47 0.40 0.34 0.31 0.33 0.36 0.54
AURANGABAD - - - - 0.00 0.00 0.00
BAGDOGRA 0.02 0.02 0.03 0.03 0.04 0.04 0.03
BHOPAL - - - - 0.00 0.00 0.00
BHUBANESWAR - - - - 0.00 0.02 0.03
CALICUT 1.83 1.98 1.96 2.18 2.29 1.94 2.21
CHANDIGA RH - - - - - - 0.08
COCHIN 2.36 2.59 2.92 3.27 3.74 4.65 5.00
COIMBATORE 0.10 0.10 0.11 0.12 0.12 0.13 0.14
GAYA 0.05 0.08 0.10 0.08 0.10 0.11 0.11
GOA 0.58 0.58 0.66 0.74 0.61 0.65 0.80
GUWAHATI 0.01 0.03 0.02 0.03 0.03 0.03 0.03
IMPHAL - - - - 0.00 0.00 0.00
INDORE - - - - 0.00 0.00 -
JAIPUR 0.25 0.23 0.23 0.26 0.33 0.36 0.45
LUCKNOW 0.34 0.36 0.38 0.44 0.47 0.59 0.66
MADURAI - - 0.03 0.13 0.20 0.26 0.27
MANGALORE 0.25 0.26 0.28 0.44 0.48 0.67 0.71
NAGPUR 0.04 0.04 0.04 0.04 0.04 0.07 0.11
PATNA - - - - - - -
PORTBLA IR 0.00 0.00 - - - 0.00 0.00
PUNE 0.06 0.06 0.06 0.10 0.12 0.24 0.25
RANCHI - - - - 0.00 0.00 0.00
SRINAGAR - - 0.02 0.02 0.02 0.01 0.01
Continued…
C-9
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
TRICHY 0.67 0.79 0.77 0.90 1.09 1.15 1.19
TRIVANDRUM 1.84 1.84 1.85 1.95 2.09 2.27 2.31

VARANASI 0.06 0.06 0.07 0.09 0.06 0.07 0.10
VISAKHAPATNA M - 0.00 0.05 0.07 0.06 0.12 0.12
KHAJURAHO - - - - - 0.00 -
AGRA - - - - 0.00 0.00 -
Total 9.75 10.17 10.75 12.19 13.46 15.32 16.95
Other Airports 0.02 0.02 0.02 0.02 0.01 0.01 0.00
Grand Total 37.91 40.80 43.03 46.62 50.80 54.67 59.31
C - 10
Freight traffic
In t e r natio nal f reig ht - an n ual ( in t o nn es)
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Metro airports
MUMBAI 470,402 467,182 452,741 467,641 486,540 496,246 547,372
DELHI 390,932 367,830 358,135 389,853 424,776 492,061 559,062
CHENNA I 295,497 272,461 237,105 220,401 222,472 230,753 268,026
BANGALORE 135,263 141,693 144,002 150,731 166,788 177,304 199,466

KOLKATA 45,098 43,890 42,436 45,482 47,803 48,414 56,966
HYDERABAD 42,170 43,627 46,495 49,281 55,023 59,578 68,946
Total 1,379,362 1,336,683 1,280,914 1,323,389 1,403,402 1,504,356 1,699,838

Non-m etro
airports
AHMEDABAD 12,980 11,793 12,830 15,705 17,527 23,457 31,050
AMRITSAR 5,834 6,998 1,424 1,486 546 611 974
BAGDOGRA - - - - 3 - -
CALICUT 21,964 25,400 27,256 22,735 22,509 13,005 13,221
COCHIN 32,198 34,173 38,033 42,795 59,711 67,136 67,576
COIMBATORE 390 467 583 957 922 1,072 1,150
GOA 2,535 2,154 2,378 2,015 1,210 1,501 1,165
GUWAHATI - - 94 36 15 11 3
JAIPUR 398 235 189 245 715 1,458 2,623
LUCKNOW 586 839 1,156 1,155 1,460 2,656 2,507
MADURAI - - - 1 1 23 3
MANGALORE - - - 87 335 566 750
NAGPUR 346 388 406 416 436 433 419

PUNE - - - 10 - 1 -
RANCHI - - - - 20 88 124
SRINAGAR - - - - - 2 -
TRICHY 1,775 2,012 2,899 4,751 4,926 6,579 6,848
TRIVANDRUM 37,795 46,753 37,963 27,283 28,731 34,613 26,942
VARANASI - 1 7 - 1 5 -
VISAKHAPATNA M - - - - - 25 -
Total 116,801 131,213 125,218 119,677 139,068 153,242 155,355
Other Airports 76 - 202 - 66 98 64
Grand Total 1,496,239 1,467,896 1,406,334 1,443,066 1,542,536 1,657,696 1,855,257
C - 11
Aircraft movement
In t e r natio nal Aircraft M o vem ent s ( In No s .)
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Metro airports
MUMBAI 69,289 72,187 71,247 72,359 74,086 76,381 80,569
DELHI 75,623 76,937 80,402 86,191 85,810 89,075 100,348
CHENNA I 32,411 33,535 34,102 35,268 34,616 35,355 36,436
BANGALORE 15,800 17,628 18,340 19,308 20,845 22,463 24,022
KOLKATA 14,020 15,527 13,733 15,962 16,269 19,218 18,602
HYDERABAD 13,871 14,121 15,364 16,819 18,361 20,693 22,261
Total 221,014 229,935 233,188 245,907 249,987 263,185 282,238
Non-m etro airports
AHMEDABAD 6,217 5,595 5,884 7,542 8,176 10,416 12,345
GOA 4,058 3,870 4,085 4,426 4,305 4,426 5,103
TRIVANDRUM 16,587 15,531 14,161 14,150 14,803 16,309 16,644
AMRITSAR 4,256 3,548 2,874 2,515 2,505 2,893 4,006
AURANGABAD - - - - 40 38 36
BAGDOGRA 434 470 550 626 677 526 384
BHOPAL - - - - 14 10 18
BHUBANESWAR - - - - 6 4 7
CALICUT 13,715 13,450 13,094 13,544 14,382 13,786 16,141
CHANDIGA RH - - - - - - 534
COCHIN 18,572 18,304 20,283 23,136 25,643 30,130 29,524
COIMBATORE 853 862 846 949 931 953 1,012
GAYA 598 918 1,066 965 1,037 1,345 1,336
GUWAHATI 254 452 416 494 474 512 490
IMPHAL - - - - 7 4 4
INDORE - - - - 11 10 -
JAIPUR 2,225 1,870 1,800 2,037 2,742 2,923 3,744
LUCKNOW 2,372 2,652 2,763 2,924 3,004 6,970 4,816
MADURAI - - 486 1378 1799 2115 2212
MANGALORE 2,489 2,552 2,642 4,169 3,095 4,468 5,111
NAGPUR 426 488 520 480 544 840 1406
PATNA 4 13 16 16 6 3 -
PORTBLA IR 4 8 - - - 22 20
PUNE 944 976 958 1,028 1,118 2,044 2,046
RANCHI - - - - 24 20 58
Continued…
C - 12
…continued
Airports 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
SRINAGAR - - 124 130 130 40 76
TRICHY 5,950 6,615 5,990 7,030 7,778 8,262 8,736

VARANASI 842 842 982 1,160 875 837 1,016
VISAKHAPATNA M - 86 938 1,120 1,097 1,661 1,519
KHAJURAHO - - - - - 2 -
AGRA - - - - 12 2 -
Total 80,800 79,102 80,478 89,819 95,235 111,571 118,344
Other Airports 278 249 243 250 139 112 95
Grand Total 302,092 309,286 313,909 335,976 345,361 374,868 400,677
S our c e : Air por t Author ity of I ndia(AAI)
C - 13
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Airport Infrastructure

Investment plans A-13

Part B: Industry Information

Business of an airport B-1

Regulatory framew ork B-5

Benchmarking of airport B-9

Infrastructure required B-11

Factors that influence performance B-13

Player Profiles B-18

Part C: Industry statistics

1.0 Passenger A-4

2.0 Freight A-8

3.0 Investment plans A-13

4.0 Pr ofitability A-20

Growth in air passenger traffic at airports to decline further in fiscal 2019

Limited routes operational under UDAN owing to slot constraints

International freight traffic growth at airports to soar in fiscal 2018

Greenfield investments to dominate by fiscal 2022

Investments till fiscal 2018 are expected to remain, due to:

Revenue at MIAL declined on account of reduction in UDF

Growth in air passenger traffic to slow down in fiscal 2019

Pas s e ng er t raffic at In dian airpo rts

Limited routes operational under UDAN

Only 14% of RCS airports are ready for take-off

Congestion at metro airports to boost connectivity from non-metro airports

Do m e s tic an d in t erna tio nal p assen ger t raf fic

Sh ar e o f m et ro an d n o n-m etro airp orts

Traffic at non-metro airports to outpace metros

Almost equal mix of domestic inbound and outbound passengers at metro

So u r ce : Dir e ct o r at e Ge n e r al o f Civil Aviat io n , AAI, CRISIL Re s e ar ch

Fr e ig h t t raffic ( d om est ic an d in tern ation al)

So u r ce : Air p o r t s Au t h o r it y o f In d ia ( AAI) , CRISIL Re s e ar ch

Do m e s tic an d in t ernatio nal f reig ht t rend

Policy for civil aviation aims to reinforce cargo traffic

Top 6 airports account for 87% by volume

Fr e ig h t t raffic h an dled at m et ro an d n o n-m etro airp ort s

Air p o rt -w ise air carg o im p orts an d e xpo rts ( 2016- 17)

Do m e s tic an d In t ernatio nal f reig ht at p rom inen t n o n -m et ro air po rts

Greenfield airports to attract majority of investments

Air p o rt in frastru ctu re in vestm en ts

Pr o p o r tion o f g r een field p ro ject s t o r ise sign ificantly

Most major airports to be built on PPP basis

Timely implementation will be critical

MoEF defers stage II forest clearance

Second airport in Pune at Purandar

GMR group completes financial closure of Goa airport

The financial closure of the airport was completed in August 2017.

Severe congestion despite huge investments

M ajo r air po rts are o vercrow ded

Business models of PPP airports

Note: TBD: To be decided

Key elements of aeronautical revenue include:

Calcu lat io n o f ave rag e reven ue r equ irem ent ( ARR)

Note: *assumed as 30% hybrid-till model

Tariff for DIAL declines 89% from July 2017

MIAL saw decline in UDF from Q3 FY2017 due to implementation of second

Prevailing aeronautical tariffs at GHIAL to continue

Aeronautical revenue for BIAL to increase in second control period

Higher share of aeronautical revenue at private sector airports

Sh ar e o f ae ron au tical revenu e at PPP air p ort s in In dia

L an d m o n etisation can b oo st r evenue, b u t p r og ress is m inim al

Note: (I) The above values are in acres.

UDF at DIAL b e f o re im plemen tatio n o f seco nd t arif f o rd er

Land monetisation, non-aero activities to enhance profitability