Key investments and developments

• According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in India’s air transport sector (including air freight) reached US$ 3.54 billion between April 2000-March 2022.
• The government has allowed 100% FDI under the automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49% would require government approval.
• India’s aviation industry is expected to witness Rs. 35,000 crore (US$ 4.99 billion) investment in the next four years. The Indian Government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026.
• India aims to have 220 new airports by 2025, said, Mr. Jyotiraditya Scindia, Minister of Civil Aviation. Cargo flights for perishable food items will also be increased to 30% with 133 new flights in the coming years.
• In 2022, Mumbai International Airport Ltd (MIAL) has raised US$ 750 million debt in a private placement from US-based private asset manager, Apollo Global.
• Adani Airport Holdings (AAHL) has raised US$ 250 million in May 2022 for capital expenditure and for the development of six airports that it currently manages.
• In February 2022, the Airports Authority of India (AAI) and other airport developers have set a capital outlay target of Rs. 91,000 crore (US$ 12.08 billion) for the development of the airport industry.
• AAI plans to invest Rs. 25,000 crore (US$ 3.58 billion) in next the five years to augment facilities and infrastructure at airports.
• UK group to invest Rs. 950 crore (US$ 135.9 million) in Turbo Aviation's new airline TruStar
• In October 2021, Tata Sons won the bid to acquire state-run Air India by offering Rs. 18,000 crore (US$ 2.4 billion) to acquire 100% shares.
• In October 2021, Akasa Air, a start-up airline, received a ‘No Objection’ certificate from the Ministry of Civil Aviation to launch operations. The start-up plans to commence its operations from mid-2022.
• In September 2021, JetSetGo, a private aviation company, plans to make its flight operations carbon neutral by 2024 through a carbon management programme.
• In August 2021, Indira Gandhi International Airport was declared the best airport in India and Central Asia at Skytrax World Airport Awards.
• In June 2021, SpiceJet announced its ambitious target to fly 100 million domestic passengers on Sustainable Aviation Fuel (SAF) blend by 2030 under the aegis of World Economic Forum (WEF).
• In April 2021, Boeing, an aircraft manufacturer, announced that it has partnered with the Indian Aviation Academy (IAA) and the University of Southern California (USC) to conduct safety management system training sessions for all stakeholders in the domestic aviation industry.
• In March 2021, the government announced plan to set up two water aerodroames in Assam and four water aerodromes in Andaman & Nicobar Islands this year to boost tourism and connectivity.
• In March 2021, the government submitted a proposal to develop a water aerodrome project at the Ujjani Dam, under the Ministry of Civil Aviation’s UDAN-RCS (regional connectivity scheme).
• On March 25, 2021, Union Minister of Civil Aviation Hardeep Singh Puri inaugurated the Kurnool Airport, Orvakal, Andhra Pradesh, in a virtual ceremony. The flight operations at Kurnool airport will commence on March 28, 2021 under the Regional Connectivity Scheme – Ude Desh Ka Aam Nagrik (RCS-UDAN). UDAN flights carried 34,38,955 passengers till 7th November 2021.
• According to WTTC, India ranked 7th among 185 countries in terms of travel & tourism’s total contribution (4.7%) to the GDP in 2020. The contribution was worth US$ 121.9 billion.