Business Opportunities

  • India is one of the fastest growing aviation market and currently the ninth largest civil aviation market in the world with a market size of around US$ 16 billion.
  • UDAN- World’s first Regional Connectivity Scheme to Connect un-served & Under-served airports and boost regional tourism and economic growth; ensures affordable flying at Rs. 2,500(39.133 US $) for an hour long flight.
  • India is projected to be the third-largest aviation market by 2026 and the largest by 2030.
  • About 1.4 Lakh scheduled international aircraft movements of Indian airlines in FY17, 9.7% growth over FY16.
  • During the FY 2017, domestic air passenger traffic growth year over year is 20 percent.
  • India is among the five fastest-growing aviation markets globally with 275 million new passengers. Indian Aviation market got fall in average airfare by 18 percent in 2016 over 2015.
  • The airlines operating in India are projected to record a collective operating profit of Rs. 8,100 crore (US$ 1.29 billion) in fiscal year 2016.
  • During FY17, domestic passenger traffic increased by 22 per cent in comparison with growth rate of 21.24 per cent in FY16.
  • Airports across the globe are planning on increasing their spending on new technology to keep up with surging passenger traffic, which is expected to double to 370 million by 2020.
  • India's air cargo is estimated to grow at 9 per cent over the next few years, according to Mr Ashok Gajapathi Raju, Minister for Civil Aviation, Government of India.
  • India has become the world’s fastest growing domestic travel market for the 22nd time in a row, recording a 26.6 per cent year-on-year growth in January 2017, according to the IATA.
  • Domestic air traffic is expected to grow 25 per cent and cross 130 million in financial year 2017-18.
  • 31 Currently served airports, 12 underserved airports and 27 underserved airports to connect 128 RCS routes
  • 3rd largest aviation market by domestic air passenger traffic which stood at over 10 Cr.

Read More

Policy support and demand growth unlocking large investment potential

Policy support and demand growth unlocking large investment potential

  • 100% FDI allowed in Domestic Scheduled Air Transport Services and Regional Air Transport and 100% FDI allowed under Automatic Route in Brownfield airports projects
  • Open Skies Air Services Agreement offered to 49 countries and 5 SAARC nations.
    • INR 77k Crore (1205.668 US$) investment made in the airport sector from FY12-17; private investment total INR 59k Crore (923.824 US $).
  • Success of PPP formats will raise investment in existing and greenfield airports, Airlines & Engine Manufacturers

Huge potential to develop India as an MRO hub

  • Multiple provisions for MRO service providers: rationalizing customs duty, simplification of goods clearance procedure, Zero-rated VAT, adequate land in all future Airports & no airport royalty for 5 years.
    • India’s current MRO market size is expected to be around USD 750 million
    • MRO market in India is expected to grow at the Compound Annual Growth Rate (CAGR) of 7% for next seven years. By 2020, it will be a market worth USD 1.5 billion.
  • Indian airline companies spend over 13-15 per cent of their revenues on maintenance, which is the second-highest cost component after fuel

Leverage on non - aeronautical revenues, improved technology

  • Airport developers can now draw on wider revenue opportunities such as retail, advertising and vehicle parking
  • Launched GAGAN: India’s 1st satellite based navigation system to improve accuracy of air navigation services.
  • Commissioning of Category- III B Instrument Landing System (ILS) in Jaipur & Lucknow, assuring airlines all weather access to airports

Supported By

Official Media Partner