Airports in India Witnessed Domestic Passenger Traffic of About 243.28 Million People
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AVIATION For updated information, please visit www.ibef.org March 2019 Table of Content Executive Summary………………….….…….3 Advantage India……………………...….……..4 Market Overview ………………………….…..6 Recent trends and Strategies….…..………..18 Growth Drivers…………………….................22 Opportunities…….……….......………………33 Industry Associations……………....…...…...35 Useful Information……….......……………….37 EXECUTIVE SUMMARY . India is set to surpass UK and become the third largest aviation Air passenger traffic in India (million) market around 2024.^ 500 421.00 . By 2020, passenger traffic at Indian airports is expected to increase 400 308.75 316.51 to 421 million from 308.75 million in 2017-18. 300 200 . During Apr 2018-Feb 2019, air passenger traffic stood at 316.51 100 million. 0 FY18 FY19** 2020F . Contribution of travel and tourism to India’s GDP increased to US$ Travel and Tourism Total Contribution to GDP* (US$ billion) 247.30 billion in 2018 from US$ 234.03 billion in 2017. 600 CAGR 6.99% . The contribution is further forecasted to increase to US$ 492.21 billion by 2028F. 400 492.21 200 234.03 247.30 0 2017 2018 2028F . Business and leisure travel to boost growth. Business and Leisure Travel Spending (US$ billion) . Spending on business travel increased to US$ 234.44 billion in 2018 600.00 from US$ 201.71 billion in 2017, while spending on leisure travel increased to US$ 12.86 billion in 2018 from US$ 11.61 billion in 400.00 432.35 2017. 200.00 201.71 11.61 234.44 12.86 24.41 0.00 2017 2018E 2028F Note: *At real prices, E – Estimated, F – Forecasted, Conversion rate - US$ 1 = Rs 65.12, Leisure Travel Business Travel ** - Up to February 2019, ^As per IATA forecasts Source: World Travel and Tourism Council, Airport Authority of India 3 Aviation For updated information, please visit www.ibef.org Aviation ADVANTAGE INDIA ADVANTAGE INDIA . Rising working group and widening middle class . Growth in aviation accentuating demand for MRO facilities demography is expected to boost demand . Expenditure in MRO accounts for 12-15 per cent of total . India has envisaged increasing the number of revenues; it is the second-highest expense after fuel cost operational airports to 190-200 by FY40. By 2028, the MRO industry is likely to grow over . Country will become the third largest aviation US$ 2.4 billion from US$ 800 million in 2018. market in terms of passengers by 2024.^ ADVANTAGE INDIA . Investments to the tune of Rs 420-450 . The government has been encouraging billion (US$ 5.99-6.41 billion) are private sector participation expected in India’s airport . Foreign investment up to 49 per cent is infrastructure between FY18-23#. allowed under automatic route in scheduled . Growing private sector participation air transport service, regional air transport through the Public - Private Partnership service and domestic scheduled passenger (PPP) route. airline. Notes: FDI – Foreign Direct Investment, MRO – Maintenance, Repair and Overhaul; FY – Indian Financial Year (April – March), ^As per IATA forecasts, #As per CRISIL Source: Ministry of Civil Aviation, MRO India, IATA, Crisil, FICCI, PWC 5 Aviation For updated information, please visit www.ibef.org Aviation MARKET OVERVIEW EVOLUTION OF THE INDIAN AVIATION SECTOR . India is the 7th largest civil aviation market in the world and is set to become the world’s 3rd* largest by 2024 . In FY18, airports in India witnessed domestic passenger traffic of about 243.28 million people. Investments worth US$ 6 billion are expected in the country's airport sector in 5 years . In-service fleet size of scheduled Indian operators stood at 620 airplanes, as of July 2018. The number of airplanes is expected to grow to 1,100 planes by 2027. Scheduled airlines: distance 199 flown (mn km) 1,520.97 (2018P) Non-scheduled airlines in 39 106 (FY19^^) operation Number of aircrafts 225 620 (FY19^) (scheduled Indian operators) Cargo handled 703,000 3,357,028 (FY18) (March 2019) Number of operational airports 50 103 2000 Note: *As per IATA forecasts, FY – Indian Financial Year (April – March), mn km – Million Kilometers, ^ - as of July 2018, ^^ - As of October 2018, P - Provisional Source: Airports Authority of India, Ministry of Statistics and Programme Implementation, Ministry of Civil Aviation, DGCA, News Articles 7 Aviation For updated information, please visit www.ibef.org AIRPORTS AND AIRSTRIPS Domestic airports Non-operational (9) (66) AAI managed (125) Airports and Customs airports airstrips in India Operational (90) (7) (464) Non-AAI airports and airstrips (339) Civil enclaves (26) International (17) Activity in AAI airports - shares (%) – FY19* 120.00% 17.34% 20.09% 65.63% . Airports Authority of India (AAI) was – 100.00% Activity in AAI airports - shares (%) – FY19* • Established in 1994 under the 80.00% Airports Authority Act 60.00% • Responsible for developing, 82.66% 79.91% financing, operating and 40.00% maintaining all government airports Basic facts 20.00% • The Aircraft Act (1934) governs 0.00% 36.21% remaining airports Aircraft movement Passenger traffic Freight Traffic Domestic International Note: AAI – Airports Authority of India, JV – Joint Venture, FY – Indian Financial Year (April – March), * up to February 2019 Source: Airports Authority of India 8 Aviation For updated information, please visit www.ibef.org MAJOR AIRLINES OPERATING IN INDIA SpiceJet Market share: 13.7 per cent Passenger load traffic: 94.0 per cent GoAir Market share: 9.0 per cent Passenger load traffic: 92.6 per cent Jet Airways Market share: 10.0 per cent Passenger load traffic: 89.4 per cent Jetlite Market share: 1.4 per cent Passenger load traffic: 87.9 per cent Air India Market share: 12.8 per cent Passenger load traffic: 83.3 per cent Indigo Market share: 43.4 per cent Passenger load traffic: 88.4 per cent Note: Market Share and Passenger Load Data for the month of February 2019 Source: Directorate General of Civil Aviation 9 Aviation For updated information, please visit www.ibef.org MAJOR AIRPORTS IN INDIA Delhi Passenger traffic handled in FY16: 48.42 million FY17: 57.70 million FY18: 65.69 million Apr 2018-Feb 2019: 63.75 million Kolkata Passenger traffic handled in FY16: 12.42 million FY17: 15.82 million FY18: 19.89 million Apr 2018-Feb 2019: 20.00 million Mumbai Passenger traffic handled in; FY16: 41.67 million FY17: 45.15 million FY18: 48.50 million Hyderabad Apr 2018-Feb 2019: 45.24 million Passenger traffic handled in FY16: 12.39 million FY17: 15.10 million FY 18: 18.16 million Bengaluru Apr 2018-Feb 2019: 19.57 million Passenger traffic handled in FY16: 18.97 million FY17: 22.88 million Chennai FY18: 26.91 million Passenger traffic handled in Apr 2018-Feb 2019: 30.46 million FY16: 15.22 million FY17: 18.36 million FY 18: 20.36 million Apr 2018-Feb 2019: 20.82 million Note: FY – Indian Financial Year (April – March) Source: AAI 10 Aviation For updated information, please visit www.ibef.org AIRLINES DEMAND, CAPACITY AND UTILISATION Domestic Demand, Capacity and Utilisation InternationalVisakhapatnam Demand, port traffic Capacity (million and tonnes)Utilisation 1,80,000 100% 1,20,000 90% 87.0% 81.0%81.1% 86.0% 78.4% 78.6% 79.3% 1,60,000 84.3% 90% 72.8% 80% 77.3% 79.0% 1,00,000 71.1% 78.3% 72.0% 74.5% 80% 66.3% 78.2% 1,40,000 70.3% 82.8% 75.1% 70% 63.7% 70% 1,20,000 75.1% 73.3% 80,000 65.5% 60% 60% 1,00,000 1,02,525.1 1,01,669.6 50% 91,245.0 1,43,786.0 50% 60,000 1,34,541.2 80,000 83,134.3 82,367.0 40% 40% 81,720.7 1,23,633.6 76,147.7 1,16,944.8 1,17,041.7 71,510.9 71,444.1 60,000 70,182.9 40,000 69,275.1 30% 98,641.2 97,728.0 30% 64,821.4 63,987.8 62,172.2 61,788.8 59,879.8 40,000 84,805.5 20% 80,965.9 54,897.1 80,716.2 20% 54,464.6 53,710.0 78,638.8 76,147.9 20,000 50,464.2 48,468.9 68,215.7 67,023.2 20,000 10% 45,483.2 10% 61,090.5 40,740.8 57,901.4 59,159.8 59,138.9 59,084.1 56,739.2 52,707.3 36,129.6 43,959.4 40,697.0 0 37,703.9 0% 0 0% FY16 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY17 FY18 FY09 FY13 FY08 FY10 FY11 FY12 FY14 FY15 FY16 FY17 FY18 FY19^ FY19^ Capacity (Available Seat Kilometer*) Capacity (Available Seat Kilometer*) Demand (Revenue Passenger Kilometer*) Demand (Revenue Passenger Kilometer*) Utilisation (Passenger Load Factor in percentage) Utilisation (Passenger Load Factor in percentage) . Demand and Capacity in India’s civil aviation sector have shown robust growth. Capacity (Available Seat Kilometer) available in domestic flights has increased to 143,786.0 million km in FY19^. Correspondingly, demand (Revenue Passenger Kilometer) for domestic services has grown rapidly to 123,633.6 million km in FY19^. Capacity (Available Seat Kilometer) available in international flights has increased to 102,525.1 million km in FY19^. Correspondingly, demand (Revenue Passenger Kilometer) for international services has grown rapidly to 83,143.3 million km in FY19^. Growth in demand has consistently outpaced the growth in supply resulting in high utilisation (Passenger Load Factor). As of March 2018, India had the highest utilisation (Passenger Load Factor) among the top seven aviation markets in the world. Notes: *in million kilometre, ^provisional data up to February 2019 Source: Directorate General of Civil Aviation, Aranca Research 11 Aviation For updated information, please visit www.ibef.org PASSENGER TRAFFIC…(1/2) .