Aviation Summit

The Industry

Indian Aviation Sector

  • India is one the fastest growing aviation markets and currently the ninth largest civil aviation market in the world with a market size of around US$ 16 billion. It aims to become the third-largest aviation market by 2020 and the largest by 2030. During January-August 2016, domestic air passenger traffic rose 23.14 per cent to 64.47 million from 52.36 million during the same period in 2015.

    • In July 2016, total aircraft movements at all Indian airports stood at 168,400, which was 14.3 per cent higher than July 2015. International aircraft movements increased by 8.2 per cent to 32,830 in July 2016 from 30,330 in July 2015. Domestic aircraft movements increased by 15.8 per cent to 135,570 in July 2016 from 117,050 in July 2015.Indian domestic air traffic is expected to cross 100 million passengers by FY2017, compared to 81 million passengers in 2015, as per Centre for Asia Pacific Aviation (CAPA).
    • India is among the five fastest-growing aviation markets globally with 275 million new passengers. The airlines operating in India are projected to record a collective operating profit of Rs 8,100 crore (US$ 1.29 billion) in fiscal year 2016, according to Crisil Ltd.
  • The aviation sector is experiencing dramatic growth across the board owing to opening up of the airport infrastructure to private sector participation; growth in business & leisure travel; increase in inflows of Foreign Direct Investment (FDI); emergence of LCCs / new carriers; largescale investments in the airport infrastructure; and growth in air-cargo industry. According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in air transport (including air freight) between April 2000 and March 2016 stood at US$ 931.05 million.

    • The Government of India is planning to boost regional connectivity by setting up 50 new airports over the next three years, out of which at least 10 would be operational by 2017.The domestic airlines are likely to add ~55 new aircraft during FY2017 as against ~33 added during FY2016.The Airports Authority of India (AAI) plans to revive and operationalise around 50 airports in India over the next 10 years to improve regional and remote air connectivity.
    • Government agencies project that around 500 brownfield and greenfield airports would be required by 2020. The private sector is being encouraged to become actively involved in the construction of airports through different Public Private Partnership models, with substantial state support in terms of financing, concessional land allotment, tax holidays and other incentives.