The Indian airport industry is one of the fastest growing industries in the country. It is expected to become the world's largest domestic aviation market within the next 10-15 years. Low cost carriers, modern airports, foreign investment, and technology have driven expansion in the industry. The domestic passenger traffic grew by 18% in 2018 and is projected to reach 293 million by 2020. The government is investing heavily in airport infrastructure and developing regulatory policies to support further growth in the industry.
The Indian airport industry is one of the fastest growing industries in the country. It is expected to become the world's largest domestic aviation market within the next 10-15 years. Low cost carriers, modern airports, foreign investment, and technology have driven expansion in the industry. The domestic passenger traffic grew by 18% in 2018 and is projected to reach 293 million by 2020. The government is investing heavily in airport infrastructure and developing regulatory policies to support further growth in the industry.
The Indian airport industry is one of the fastest growing industries in the country. It is expected to become the world's largest domestic aviation market within the next 10-15 years. Low cost carriers, modern airports, foreign investment, and technology have driven expansion in the industry. The domestic passenger traffic grew by 18% in 2018 and is projected to reach 293 million by 2020. The government is investing heavily in airport infrastructure and developing regulatory policies to support further growth in the industry.
The Indian airport industry is one of the fastest growing industries in the country. It is expected to become the world's largest domestic aviation market within the next 10-15 years. Low cost carriers, modern airports, foreign investment, and technology have driven expansion in the industry. The domestic passenger traffic grew by 18% in 2018 and is projected to reach 293 million by 2020. The government is investing heavily in airport infrastructure and developing regulatory policies to support further growth in the industry.
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Airport Construction Management
Prof. Abhishek Shrivas Introduction to Indian Airport Industry
The civil aviation industry in India has emerged as one
of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. India is expected to become the world’s largest domestic civil aviation market in the next 10 to 15 years, as per Mr Jayant Sinha, Union Minister of State for Civil Aviation, Government of India. The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced information technology (IT) interventions and growing emphasis on regional connectivity. CAGR Compound Annual Growth Rate is not an accounting term, but it is often used to describe some element of the business, for example revenue, units delivered, registered users, etc. (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. we will compute the CAGR over three periods. Presume that the year-end revenues of a business for four years, V(t) in above formula, have been: Year-End12/31/2004,12/31/2007Year-End
Revenue9,000-------13,000 = 2007 - 2004 = 3
Therefore, to calculate the CAGR of the revenues over the three- year period spanning the "end" of 2004 to the "end" of 2007 is:
- it's a smoothed growth rate per year.
Market Size India’s passenger* traffic grew at 16.52 per cent year on year to reach 308.75 million. It grew at a CAGR of 12.72 per cent during FY06-FY18. Domestic passenger traffic grew YoY by 18.28 per cent to reach 243 million in FY18 and is expected to become 293 million in FY20E. International passenger grew YoY by 10.43 per cent to reach 65 million in FY18 and traffic is expected to become 76 million in FY20E. In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes. India’s domestic and international aircraft movements grew 14.40 per cent YoY and 9.40 per cent YoY to 1,886.63 thousand and 437.93 thousand during 2017-18, respectively. As of March 2018, there are nearly 550 commercial aircraft in operation in India. Investments 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 December 2017 stood at US$ 1,608.51 million. The government has 100 per cent FDI under automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49 per cent would require government approval. India’s aviation industry is expected to witness Rs 1 lakh crore (US$ 15.52 billion) worth of investments in the next five years. The Indian government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026. Key investments and developments in India’s aviation industry include: AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and constructing 15 new ones. In June 2018, India has signed an open sky agreement with Australia allowing airlines on either side to offer unlimited seats to six Indian metro cities and various Australian cities. The AAI plans to develop Guwahati as an inter- regional hub and Agartala, Imphal and Dibrugarh as intra-regional hubs. Indian aircraft Manufacture, Repair and Overhaul (MRO) service providers are exempted completely from customs and countervailing duties Government Initiatives Allocation to Civil Aviation Ministry has been tripled to Rs 6,602.86 crore (US$ 1,019.9 million) under Union Budget 2018-19. In February 2018, the Prime Minister of India launched the construction of Navi Mumbai airport which is expected to be built at a cost of US$ 2.58 billion. The first phase of the airport will be completed by end of 2019. The Government of Andhra Pradesh is to develop Greenfield airports in six cities-Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model. Regional Connectivity Scheme (RCS) has been launched under the policy Road Ahead India’s aviation industry is largely untapped with huge growth opportunities, considering that air transport is still expensive for majority of the country’s population, of which nearly 40 per cent is the upwardly mobile middle class. The industry stakeholders should engage and collaborate with policy makers to implement efficient and rational decisions that would boost India’s civil aviation industry. With the right policies and relentless focus on quality, cost and passenger interest, India would be well placed to achieve its vision of becoming the third-largest aviation market by 2025. Regulatory Bodies Ministry of Civil Aviation (MoCA) Director General of Civil Aviation (DGCA) Bureau of Civil Aviation Security (BCAS) AAI (Airport authority of India) Airport Economic Regulatory Authority (AERA) Executive summary Advantage India Major Airlines operating in Country Major Airports Private sector participation Porter’s Five Force Framework analysis STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS Policy Support Aiding Growth Private Sector Investment in India Rising Successful PPP projects in India OPPORTUNITIES Thank You