IBEF-印度机场分析（英文）-2018.11-39页-1mb

Summary of India's Aviation Industry

Core Content

India's aviation industry is experiencing significant growth, driven by increasing demand, policy support, and private sector participation. The country is projected to become the third-largest aviation market globally by 2024, with passenger traffic expected to surpass 421 million by 2020 and reach over 480 million by 2036. The travel and tourism sector contributes over 9.4% to India's GDP, with the contribution expected to rise to US$492.21 billion by 2028.

Main Trends and Strategies

Growth Drivers

• Passenger Traffic:
  • Domestic passenger traffic grew at a CAGR of 13.91% from FY06 to FY18, reaching 243.28 million in FY18.
  • International passenger traffic grew at a CAGR of 9.36% over the same period, reaching 65.48 million in FY18.
  • By 2020, passenger traffic is expected to increase to 370 million.
• Freight Traffic:
  • Domestic and international freight traffic are projected to grow at a CAGR of 7.5% and 7.13%, respectively, by 2023.
  • Total freight traffic is expected to reach 4.14 million tonnes by 2032.
• Aircraft Movement:
  • Aircraft movement grew at a CAGR of 5.37% from FY07 to FY18, reaching 2.32 million in FY18.
  • Domestic and international aircraft movement grew by 14.40% and 9.40% YoY in 2017-18.

Private Sector Participation

• PPP Model:
  • Five international airports (Delhi, Mumbai, Cochin, Hyderabad, Bengaluru) are developed under the PPP model.
  • The government has approved 15 greenfield PPP projects, with a focus on improving infrastructure and increasing capacity.
  • Private sector shareholding in major airports ranges from 74% (e.g., IGI Airport, RGI Airport, Bengaluru International Airport).
• Investments:
  • The aviation industry is expected to witness investments of US$25 billion by 2027.
  • By 2030, the number of airports in India is expected to increase to 250.

Strategies Adopted

• Expansion:
  • New terminals are being developed in major cities like Mumbai, Bengaluru, Chennai, and Kolkata.
  • Indian carriers aim to double their fleet capacity to 1,100 aircrafts by 2027.
• Ancillary Services:
  • Low-cost carriers (LCCs) are expanding ancillary services such as lounge access, priority boarding, and customer meals.
• Government Initiatives:
  • The NABH-Nirman Scheme aims to increase airport capacity to handle a billion trips per year.
  • The 'Digital Yatra' policy introduces biometric digital processing for smoother passenger experience.
  • The government has allocated significant budgetary support to Air India, AAI, DGCA, and Bureau of Civil Aviation Security.

Key Players and Associations

• Airports Authority of India (AAI):
  • Responsible for government airports.
  • Plans to develop over 20 airports in tier II and III cities by 2020.
• Directorate General of Civil Aviation (DGCA):
  • Oversees civil aviation regulations and safety.
  • Coordinates with AAI for airport operations and development.
• Major Private Sector Operators:
  • GMR Group: Owns major stakes in Delhi, Hyderabad, and Bengaluru airports.
  • Fraport AG: Participates in Delhi and Hyderabad airports.
  • Malaysia Airports Holdings Berhad: Involved in Delhi and Hyderabad airports.
  • AirAsia (India) Pvt Ltd: Joint venture with Tata Sons and Arun Bhatia.
  • Jet Airways: Partnered with Aeromexico for codeshare flights and loyalty programs.

Opportunities

• Investment Potential:
  • The PPP model is unlocking significant investment opportunities in existing and greenfield airports.
  • India will require investments of Rs 3-4 lakh crore (US$62.06 billion) to achieve a capacity for a billion trips per year.
• MRO Hub Potential:
  • The MRO industry is expected to grow from US$950 million in 2016-17 to over US$1.5 billion by 2020.
  • MRO accounts for 13-15% of airline revenues, making it a key growth area.
• Non-Aeronautical Revenues:
  • Indian airports are focusing on generating revenue from retail, advertising, and vehicle parking.
  • 'Project Gagan' and other satellite-based navigation systems will improve operational efficiency.

Key Figures

• Passenger Traffic (FY18): 243.28 million (domestic) and 65.48 million (international).
• Freight Traffic (FY18): 1,213.06 tonnes (domestic) and 2,143.97 tonnes (international).
• Aircraft Movement (FY18): 1.886 million (domestic) and 0.437 million (international).
• Investment Projections:
  • US$1.83 billion allocated for airport infrastructure and navigation services by 2026.
  • US$25 billion expected in investments by 2027.
• Airport Development Fee:
  • Used to fund expansion and maintenance in major airports like Delhi and Mumbai.
  • 2% levy on airfares proposed for non-metro airports.

Conclusion

India's aviation industry is poised for substantial growth, supported by strong policy frameworks, increasing private sector involvement, and a focus on both aeronautical and non-aeronautical revenues. With the expansion of airports and the introduction of advanced technologies, the sector is expected to become a key driver of the country's economy. The government's initiatives, such as the NABH-Nirman Scheme and 'Digital Yatra', are playing a crucial role in facilitating this growth.