India's aviation industry risks a capacity crunch as an expansion in landing slots and terminals fails to keep pace with the number of jets entering the market and rapid growth in demand from travellers, executives warned on Wednesday.
Airlines including InterGlobe Aviation's IndiGo, SpiceJet and GoAir have 880 aircraft on order as they tap into a market growing 20 per cent-plus per annum thanks to rising incomes and low-cost fares.
Domestic passenger numbers topped 100 million last year, with most of the growth involving flights into and out of the biggest cities.
"The airport infrastructure at many airports is breaking at the seams because there is no more capacity," said Sanjiv Kapoor, chief strategy and commercial officer at Vistara, which is jointly owned by Singapore Airlines and Tata Sons.
"Everyone is scrambling to grab whatever little is left but what happens after that?" Mr Kapoor told Reuters at an aviation conference in Mumbai.
Most of India's 40 largest airports will exceed their design capacity within a decade based on projected growth rates, consultancy CAPA estimates, with Mumbai and Chennai fast approaching saturation.
Kapil Kaul, CEO for South Asia at CAPA, said India could run out of capacity within three to five years. "We are not ready beyond 2020-2021."
08/02/17 Thomson Reuters/NDTV
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Airlines including InterGlobe Aviation's IndiGo, SpiceJet and GoAir have 880 aircraft on order as they tap into a market growing 20 per cent-plus per annum thanks to rising incomes and low-cost fares.
Domestic passenger numbers topped 100 million last year, with most of the growth involving flights into and out of the biggest cities.
"The airport infrastructure at many airports is breaking at the seams because there is no more capacity," said Sanjiv Kapoor, chief strategy and commercial officer at Vistara, which is jointly owned by Singapore Airlines and Tata Sons.
"Everyone is scrambling to grab whatever little is left but what happens after that?" Mr Kapoor told Reuters at an aviation conference in Mumbai.
Most of India's 40 largest airports will exceed their design capacity within a decade based on projected growth rates, consultancy CAPA estimates, with Mumbai and Chennai fast approaching saturation.
Kapil Kaul, CEO for South Asia at CAPA, said India could run out of capacity within three to five years. "We are not ready beyond 2020-2021."
08/02/17 Thomson Reuters/NDTV
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