Tuesday, January 02, 2018

Route to Power Indian Civil Aviation

The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world.

According to International Air Transport Association  IATA, India will displace the UK for the third place in 2026. The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced information technology (IT) interventions and growing emphasis on regional connectivity.

According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in air transport (including air freight) between April 2000 and March 2017 stood at US$ 1.01 billion.

India is estimated to see an investment of US $25 billion in the next decade in the airports sector, a demand for 935 more planes and traffic growth of 13 percent, according to Morgan Stanley. According to them, the share of air travel in air and rail travel combined in India will grow to 15.2 percent by 2027 from 7.9 percent now.

Capex plans to the tune of Rs 65,000 crore (US$ 10.08 billion) have been finalised by the Airports Authority of India (Rs 17,500 crore (US$ 27.13 billion) for the next five years) and around Rs 22,000 crore (US$ 3.41 billion) for brownfield expansion in Delhi, Mumbai, Hyderabad and Bengaluru by private operators and around Rs 21,000 crore (US$ 32.55 billion) for green field airports.
02/01/17 The Dayafter