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Aviation: Indian Airports Analysis
Aviation: Indian Airports Analysis
AVIATION
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India is expected to become the world’s third largest aviation market by 2024.
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 Kilometres, stood at 155,033.4 million kms, while demand, as
measured by Revenue Passenger Kilometres, stood at 136,631.4 million kms in FY19.
India’s passenger* traffic stood at 341.05 million in FY20. It grew at a compound annual growth rate (CAGR) of 11.13
per cent during FY16-FY20. Domestic passenger traffic stood at 274.50 million in FY20, growing at a CAGR of 12.91
per cent over FY16. International passenger traffic stood at 66.54 million, growing at a CAGR of 5.01 per cent during
FY16-FY20.
Freight traffic grew at a CAGR of 5.32 per cent during FY16-FY20 from 2.70 million tonnes (MT) to 3.33 MT. Freight
Traffic is expected to grow at a CAGR of 7.27 per cent to reach 4.14 million tonnes in FY23.
Aircraft movement grew at a CAGR of 9.56 per cent from 1.60 million in FY16 to 2.59 million in FY20. During FY16-
FY20, domestic aircraft movement increased at a CAGR of 9.83 per cent and international aircraft movement
expanded at a CAGR of 3.57 per cent. India’s domestic and international aircraft movements grew to reach 2,155
thousand and 433 thousand during FY20, respectively.
The expenditure of Indian travellers is expected to grow to Rs 9.5 lakh crore (US$ 136 billion) by 2021.
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As of March 2019, there were 137 operational airports in India. As of November 2019, 680 airplanes were in-service in
the fleet of scheduled Indian operators. Due to rise in demand in air travel, India will need 2,380 new commercial
airplanes by 2038. India is expected to have the largest number of aircrafts flying by its scheduled airlines latest by
December 2019. India plans to open 100 additional airports by 2024. As on October 2019, 55 AAI (Airports Authority
of India) airports were declared as single-use plastic free airport terminals.
The Government of India launched regional connectivity scheme named UDAN (Ude Desh ka Aam Nagrik) to make
flying affordable for common man.
AAI plans to invest Rs 25,000 crore (US$ 3.58 billion) in next the five years to augment facilities and infrastructure at
airports. It has opened the airport sector to private participation as six airports across major cities are being developed
under the PPP (public private partnership) model. Investment to the tune of Rs 42,000-45,000 crore (US$ 6-6.5 billion)
is expected in India’s airport infrastructure between FY18-23. Under Union Budget 2020-21, the Government has
introduced Krishi Udan scheme on both domestic and international route to help farmers in transporting agricultural
products and improving their product value.
In April 2020, the Government introduced ‘Lifeline Udan’ flights to transport essential medical cargo to remote parts of
the country to support India’s war against COVID-19. Under this scheme, 465 flights were operated by Air India,
Alliance Air, IAF and private carriers as of May 05, 2020.
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$ 2.75 billion between April 2000 and March 2020.
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