UdhyogIndia | Date(Sep, 2015, Tue) | Comments

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The Indian civil aviation Industry is growing rapidly driven primarily by improving economic trends, factors such as low cost carriers, modern airports, foreign direct investments in domestic airlines, cutting edge information technology interventions and growing emphasis on regional connectivity. Civil aviation sector has been growing steadily registering a growth of 13.8% during the last 10 years. The air transport in India has attracted FDI of over US$ 569 million from April 2000 to February 2015.


  The world is focused on Indian aviation – from manufacturers, tourism boards, airlines and global businesses to individual travelers, shippers and businessmen. If we can find common purpose among all stakeholders in Indian aviation, a bright future is at hand,” said Mr. Tony Tyler, Director General and CEO, International Air Transport Association (IATA).


By 2034 the five fastest-increasing markets in terms of additional passengers per year will be China (856 million new passengers), the US (559 million), India (266 million), Indonesia (183 million) and Brazil (170 million).

Currently the ninth largest market, India will see a total of 367 million passengers by 2034, an extra 266 million annual passengers compared to today. It will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market around 2031.

The Indian domestic markets will grow at 6.9% while adding 159 million extra passengers. The total domestic air markets will be 215 million.

Growth Drivers

Five international airports (Delhi, Mumbai, Cochin, Hyderabad, Bengaluru) have been completed successfully under PPP mode.

Greenfield airport at Navi Mumbai, Mopa (Goa) and some brownfield airports of Airports Authority of India (AAI) and 50 airports under the low cost model are to be developed all over the country, including under PPP.

Indian aviation is experiencing dramatic growth across the board, from the emergence of LCC/new carriers to a growing middle class ready to travel  by air as well as growth in business and leisure travel.

India’s middle income population is expected to increase from 160 Million in 2011 to 267 Million by 2016.

Greater focus on infrastructure development; increasing liberalization – Open Sky Policy; AAI driving modernization of airports, Air and Navigation Systems.

Growth in aviation accentuating demand for MRO (maintenance, repair and overhaul) facilities.

Large scale collaborations/M&A deals – Etihad Airways & Jet Airways; Tata Group & Singapore Airlines, Tata Group & AirAsia.

India plans to increase the number of operational airports to 250 by the year 2030.

At present India is the ninth-largest civil aviation market in the world, with a market size of around US$ 16 billion.  With the current trends pointing towards steeper growth in Indian Civil Aviation, India is well on track of realizing the vision of becoming third-largest aviation market by 2020.

References: Press Releases, Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI) 

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Ashok says...

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