Explore Other Industries
Last Updated: October 05, 2015
Managing Director, Airbus India
Latest update: August, 2015
•Total passenger traffic stood at a 190.1 million in FY 2015
•Passenger traffic increased by 12.47 per cent in FY 2015
•Growth in passenger traffic has been strong since the new millennium, especially with rising incomes and low-cost aviation; passenger traffic expanded at a CAGR of 11.16 per cent over FY2006–15
•Total freight traffic registered a CAGR of 6.7 per cent over FY 2006-15
•Domestic freight traffic increased at a CAGR of 8.23 per cent over FY 2006-15 while international freight traffic rose 5.9 per cent over the same period
•In FY 2015, domestic freight traffic was 0.98 million tonnes, while international freight traffic was at 1.5 million tonnes
•During FY 2015, domestic freight traffic at 0.98 million increased by 17.38 per cent while international freight traffic at 1.5 million increased by 7.08 per cent compared to FY 2014
Last Updated: August, 2015
SECTORAL REPORT | August, 2015
India’s civil aviation industry is on a high-growth trajectory. India aims to become the third-largest aviation market by 2020 and the largest by 2030.
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. India is the ninth-largest civil aviation market in the world, with a market size of around US$ 16 billion.
“The world is focused on Indian aviation – from manufacturers, tourism boards, airlines and global businesses to individual travellers, 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).
In the second quarter of 2015, domestic air passenger traffic surged 19.2 per cent to 20.3 million from 17 million in the corresponding period a year ago. Total passenger carried in June 2015 increased 13 per cent Y-o-Y to 8.8 million from 7.8 million in June 2014. International and domestic passenger traffic grew 5.3 per cent and 16 per cent, respectively, in June 2015.
In June 2015, total freight carried rose 5.4 per cent Y-o-Y to 222,990 tonnes vis-à-vis 211,590 tonnes in June 2014. International freight movement witnessed higher growth (7.1 per cent) compared with domestic freight movement (2.6 per cent).
In June 2015, total aircraft movements at all Indian airports stood at 141,620, which was 8 per cent higher than June 2014. International and domestic aircraft movements increased 6.5 per cent and 8.4 per cent, respectively, in June 2015.
Over the next five years, domestic and international passenger traffic are expected to increase at an annual average rate of 12 per cent and 8 per cent, respectively, while domestic and international cargo are estimated to rise at an average annual rate of 12 per cent and 10 per cent, respectively.
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, according to Crisil Ltd.
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 May 2015 stood at US$ 573.18 million.
Key investments and developments in India’s aviation industry include:
Government agencies project that around 500 brownfield and greenfield airports would be required by 2020. The private sector is being encouraged to become actively involved in the construction of airports through different Public Private Partnership models, with substantial state support in terms of financing, concessional land allotment, tax holidays and other incentives.
Some major initiatives undertaken by the government are:
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 2020 and the largest by 2030.
Exchange Rate Used: INR 1 = US$ US$ 0.016 as on July 8, 2015
References: Media Reports, Press Releases, Press Information Bureau, Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI)
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Loading blogs ...
FUTURISTIC SOLUTIONS, CURRENT SCENARIOS
eToilets, the self-flushing, self-monitoring technology-based sanitation solution, is no longer a dream, but has been brought into reality by Eram Scientific Solutions (ESS).
Copyright © 2010-2015 India Brand Equity Foundation
All material, information, data, images or content on this website is subject to copyright or other applicable intellectual property laws and no part of it can be reproduced in any form (including paper or electronic form) without prior written consent and approval from IBEF. Infringements are subject to prosecution under the applicable laws. For consent related queries and conditions,
please write to firstname.lastname@example.org
An initiative of the Ministry of Commerce & Industry, Government of India