India has 125 airports; of these 11 are
designated international airports
In 2004-05, Indian airports handled 60 million
passengers and 1.3 million tonnes of cargo
Passenger traffic grew at over 22% in
2004-05 over 2003-04; Cargo grew at 21.6% over the previous year
STRUCTURE
Currently all 125 airports are owned and
operated by the Airports Authority of India (AAI)
Development of airport infrastructure is a
focus area for the Government
There has been a significant uptrend in domestic and international air
travel
The Government aims to attract private
investment in aviation infrastructure
Privatisation of the Delhi and Mumbai
airports is in progress - bidders have submitted final bids. Expected
investment of about $3.5 billion
New international airports at Bangalore and
Hyderabad are being built by private consortia with a total investment
of about $600 million
25 other city airports are being considered
for private investment
Air India and Indian Airlines are the Government
owned international and domestic flag carriers respectively.
Indian private airlines - Jet, Sahara,
Kingfisher, Deccan - account for around 60% of the domestic passenger
traffic. Some have started international flights.
POLICY
100% FDI is permissible for existing airports;
FIPB approval required for FDI beyond 74%
49% FDI is permissible in domestic airlines
under the automatic route, but not by foreign airline companies
100% equity ownership by Non Resident
Indians (NRIs) is permitted
AAI Act amended to provide legal framework for
airport privatisation
100% tax exemption for airport projects for a
period of 10 years
'Open Sky' Policy of the Government and
rapid air traffic growth have resulted in the entry of several new privately
owned airlines and increased frequency/flights for international airlines.
Airport Statistics 2003-04
Airport
Passenger traffic
(million, 2003-04)
Bangalore
3.2
Chennai
4.6
Delhi
10.3
Hyderabad
2.2
Kolkata
3.0
Mumbai
13.3
Source: Director General
of Civil Aviation, AAI
OPPORTUNITY
OUTLOOK
Passenger
traffic is projected to grow at a CAGR
of over 15% in the next 5 years
To
cross 100 million passengers p.a.
by 2010
Cargo
traffic to grow at over 20% p.a. over
the next five years
To
cross 3.3 million tonnes by 2010
Major
investments planned in new airports
and upgradation of existing airports
POTENTIAL
Favourable
demographics and rapid economic growth
point to a continued boom in domestic
passenger traffic and international
outbound traffic
International
inbound traffic will also grow rapidly
with increasing investment and trade
activity and as India's rich
heritage and natural beauty are
marketed to international leisure
travellers.
Consequent
high demand for investments in
aviation infrastructure
Government
is taking steps to increase
participation by private industry
Major
opportunities lie in:
Modernisation/upgradation
of Metro airports - induction of
partners for Chennai, Kolkata
expected subsequently
Development
of 30 non-metro airports -
induction of partners for Chennai,
Kolkata expected subsequently
Greenfield
airport projects planned in resort
destinations and emerging metros
such as Goa, Pune, Navi Mumbai,
Ludhiana, etc.
Estimated
investment of over $15 billion for
airport development over the next 5
years
