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Indian Airports Analysis

March, 2018

India’s domestic aviation market has become the third largest in the world and the overall civil aviation market* in India is all set to become the world's third largest by 2020. During April-December 2017, domestic airlines carried over 225.4 million passengers. By 2020, passenger traffic at Indian airports is expected to increase to 421 million.

Domestic passenger traffic expanded at a Compound Annual Growth Rate (CAGR) of 12.39 per cent over FY06–17. International passenger traffic posted a CAGR of 9.27 per cent over FY06-17. Freight Traffic grew at a CAGR of 7.08 per cent over FY06-17. Freight Traffic is expected to grow at a CAGR of 7.27 per cent to reach 4.14 million tonnes in FY23.

The Government of India has launched regional connectivity scheme named UDAN (Ude Desh ka Aam Nagrik) to make flying affordable for common man.

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. It has opened airport sector to private participation, six airports across major cities are being developed under the PPP model. The Airports Authority of India (AAI) aims to bring around 250 airports under operation across the country by 2020.

Note: *Domestic and International

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