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Airports: Feb 2011

February, 2011

India has witnessed substantial growth in its international and domestic trade over the past few years, which has resulted in a significant increase in the freight traffic handled by airports in the country. Presently, India has 136 airports, of which 128 are owned by the Airports Authority of India (AAI).

In 2009–2010, international airports handled around 80 per cent of aircraft movement, 87 per cent of passenger traffic and 97 per cent of freight traffic. The freight traffic handled by Indian airports increased at a compound annual growth rate (CAGR) of 8.9 per cent between 2004–05 and 2009–2010.

India‘s airports handle about 30 per cent of the country‘s total trade in terms of value. Aircraft movement at Indian airports increased at a CAGR of 15.4 per cent between 2003–04 and 2008–09. Under the revised Eleventh Five Year Plan (2007–2012), the Government of India (GoI) estimated an investment of around US$ 7.5 billion for the development of airport infrastructure.

Five international airport projects have been undertaken through the public-private partnership (PPP) mode —the development of Cochin, Hyderabad and Bengaluru international airports and the modernization of Delhi and Mumbai international airports.

The Airports Authority of India (AAI) is upgrading and modernising 35 non-metro airports in the country at an estimated cost of around US$ 1 billion, as well as modernising the airports of Chennai and Kolkata. Domestic passenger traffic is estimated to reach 150–180 million by 2020, while international passenger traffic is expected to grow to around 50 million by 2015.

A growing tourism industry and favourable government policies are promoting the development of airport infrastructure in the country. The GoI is gradually liberalising air services and is seeking increased traffic rights under bilateral agreements with foreign countries such as the UAE, Mexico, Thailand and Germany. This has resulted in an increase in the number of international flights in operation, which has necessitated the development of additional airport infrastructure in the country.

Sectoral Presentation (November 2010)

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