Last Updated: September 12, 2019
Last Updated: July, 2019
India is the world’s third largest domestic aviation market and third largest aviation market. By 2024^, India’s overall aviation market is expected to become the third largest globally.
To cater to the rapidly growing demand, airline operators have been expanding their capacity. Capacity available in India’s domestic flights, as measured by Available Seat Kilometers, stood at 155,033.4 million kms while demand, as measured by Revenue Passenger Kilometers, stood at 136,631.4 million kms in FY19 (up to Feb 2019).
Capacity available in India’s international flights, as measured by Available Seat Kilometers, stood at 126,054.2 million kms while demand, as measured by Revenue Passenger Kilometers, stood at 111,620.4 million kms in FY19 (up to Feb 2019).
Domestic passenger traffic expanded at a Compound Annual Growth Rate (CAGR) of 13.65 per cent over FY06–19. International passenger traffic posted a CAGR of 9.11 per cent over FY06-19. Freight Traffic grew at a CAGR of 7.44 per cent over FY06-19. Freight Traffic is expected to grow at a CAGR of 7.27 per cent to reach 4.14 million tonnes in FY23.
During April 2018-March 2019, passenger* traffic in India stood at 344.70 million. Out of which domestic passenger traffic stood at 275.22 million while international traffic stood at 69.48 million. Total freight traffic handled in India stood at 3.56 million tonnes during the same time period. During April 2018-March 2019, domestic aircraft movement stood at 2.15 million while international aircraft movement stood at 0.45 million.
As of March 2019, there are 103 operational airports in India. As of July 2018, 620 airplanes were in-service in the fleet of scheduled Indian operators. It is further expected to grow to 1,100 planes by 2027.
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. Investments to the tune of Rs 420-450 billion (US$ 5.99-6.41 billion) are expected in India’s airport infrastructure between FY18-23#.
FDI inflows in India’s air transport sector (including air freight) reached US$ 1,833.61 million from April 2000-March 2019.
Note: *Domestic and International, ^As per IATA forecasts, #As per CRISIL
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Last Updated: September 12, 2019
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