IBEF Presentataion
Total Page:16
File Type:pdf, Size:1020Kb
AVIATION For updated information, please visit www.ibef.org July 2017 Table of Content Executive Summary………………….….…….3 Advantage India……………………...….……..4 Market Overview ………………………….…..7 Recent trends and Strategies….…..………..19 Growth Drivers…………………….................22 Opportunities…….……….......………………33 Case Studies…………….....…….……..……35 Industry Associations……………....…...…...38 Useful Information……….......……………….40 EXECUTIVE SUMMARY rd . India is set to become 3 largest aviation market by 2020. Air passenger traffic in India (million) . By 2020, passenger traffic at Indian airports is expected to increase 500 to 421 million from 223.61 million in 2016. CAGR 17.1% 400 421 300 200 223 100 0 2016 2020F . Travel and tourism to contribute US$ 423.7 billion to GDP by 2026. Travel and Tourism industry (US$ billion) . The travel and tourism industry is forecast to grow at a CAGR of 6.66 250 per cent to US$ 423.7 billion in 2026 from US$ 100 billion in 2017. CAGR 6.66% 200 228 150 100 50 100 0 2017 2020F . Business and leisure travel to boost growth. Business and Leisure Travel Spending (US$ billion) . Spending on business travel is estimated to increase to US$ 39.88 300 billion in 2026 from US$ 10.26 billion in 2017, while on leisure travel is forecast to rise to US$ 203.5 billion in 2026 from US$ 181.65 200 203.50 billion in 2017. 181.65 100 39.88 10.26 0 2017E 2026F Leisure Travel Business Travel 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 13-15 per cent of total . India plans to increase the number of airports to 250 revenues; it is the second-highest expense after fuel cost by 2030 to cater to growing leisure and business . By 2020, the MRO industry is likely to grow over travel US$ 1.5 billion from US$ 0.5 billion currently . Freight traffic also likely to go up as trade with the rest of the world increases ADVANTAGE INDIA . Investments totalling US$ 12.1 billion in . The government has been encouraging the airport sector are to be made private sector participation during the 12th Five Year Plan (2012- . Foreign investment up to 49 per cent is 17); of these, private investments are allowed under automatic route in scheduled expected to total US$ 9.3 billion air transport service, regional air transport . Growing private sector participation service and domestic scheduled through the Public - Private Partnership passenger airline. (PPP) route Notes: FDI – Foreign Direct Investment, MRO – Maintenance, Repair and Overhaul; FY – Indian Financial Year (April – March) Source: Ministry of Civil Aviation, MRO India 5 Aviation For updated information, please visit www.ibef.org Aviation MARKET OVERVIEW EVOLUTION OF THE INDIAN AVIATION SECTOR . India is the 9th largest civil aviation market in the world, In FY17, domestic passenger traffic witnessed a growth rate of 21.5 per cent . In FY17, airports in India witnessed a domestic passenger traffic of about 100 million people. Investments worth US$ 6 billion are expected in the country's airport sector in 5 years . India’s civil aviation market is set to become the world’s 3rd* largest by 2020 and expected to be the largest by 2030 Scheduled airlines: distance 199 flown (mn km) 1,700 (FY17) Non-scheduled airlines in 39 112 (FY17) operation Number of aircrafts 225 1,657 (FY16) Cargo Handled 703,000 2,930,000 (FY17) Number of airports 50 125 (FY17) Note: * India ranks after the US and China FY – Indian Financial Year (April – March), mn km – Million Kilometers Source: Airports Authority of India, Ministry of Statistics and Programme Implementation, Ministry of Civil Aviation 7 Aviation For updated information, please visit www.ibef.org INDIA HAS 464 AIRPORTS AND AIRSTRIPS, OF WHICH 125 AIRPORTS ARE OWNED BY AAI 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 (%) – FY17 120% . Airports Authority of India (AAI) was – 100% Activity in AAI airports - 80% 78% 38% shares (%) – FY17 • Established in 1994 under the 80% Airports Authority Act 60% • Responsible for developing, 62% financing, operating and 40% maintaining all government airports Basic facts 20% • The Aircraft Act (1934) governs 20% 22% 0% remaining airports Aircraft movement Passenger traffic Freight Traffic International Domestic Note: AAI – Airports Authority of India, JV – Joint Venture, FY – Indian Financial Year (April – March) Source: Airports Authority of India 8 Aviation For updated information, please visit www.ibef.org SIX MAJOR AIRLINES OPERATE IN THE COUNTRY SpiceJet Market share: 13.2% Passenger load traffic: 91.4% GoAir Market share: 8.9% Passenger load traffic: 84.8% Jet Airways Market share: 15.4% Passenger load traffic: 79.8% Jetlite Market share: 2.5% Passenger load traffic: 79.2% Air India Market share: 13% Passenger load traffic: 74.6% Indigo Market share: 39.9% Passenger load traffic: 81.6% Source: Note: Market Share as on March’17 and Load Data for the month of March’17 as published by Directorate General of Civil Aviation 9 Aviation For updated information, please visit www.ibef.org THE SIX MAJOR AIRPORTS IN THE COUNTRY Delhi Passenger traffic handled in FY16: 48 million; FY17: 57,7 million Kolkata Passenger traffic handled in FY16: 12.4 million; FY17: 14.35 million Mumbai Passenger traffic handled in; FY16: 41.7 million; FY17: 45.2 million Hyderabad Passenger traffic handled in FY16: 12.4 million FY17: 15.24 million Bengaluru Passenger traffic handled in FY16: 19 million; FY17: 22 million Chennai Passenger traffic handled in FY16: 15.2 million; FY17: 16.7 million Note: FY – Indian Financial Year (April – March) Source: AAI 10 Aviation For updated information, please visit www.ibef.org PASSENGER TRAFFIC HAS EXPERIENCED HEALTHY GROWTH … (1/2) . Witnessing a growth of 18.5 per cent over the previous year, total VisakhapatnamPassenger port traffic traffic in (million(million) tonnes) passenger traffic stood at a 264.97 million in FY17, which was recorded at 223.6 million in FY16 in India. 300 . Growth in passenger traffic has been strong since the new millennium, especially with rising incomes and low-cost aviation; during FY06-17, passenger traffic grew at a CAGR of 12.39 per cent 250 in the country. 265.0 200 223.6 190.1 150 169.0 162.3 159.4 143.4 100 123.8 116.9 108.9 96.5 50 73.4 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April – March) Source: Association of Private Airport Operator, Airports Authority of India 11 Aviation For updated information, please visit www.ibef.org PASSENGER TRAFFIC HAS EXPERIENCED HEALTHY GROWTH … (2/2) . Domestic passenger traffic expanded at a CAGR of 13.52 per cent GrowthVisakhapatnam in domestic passenger port traffic traffic (million has tonnes) been robust over FY06–17 300 50% . According to Directorate General of Civil Aviation, domestic 250 40% passenger traffic witnessed growth at a rate of 21.5 per cent in FY17, 30% 200 206 as against 21.24 per cent in FY16. 20% 169 150 139 10% 71 . International passenger traffic registered growth at a CAGR of 9.27 122 122 117 100 106 51 89 0% 87 per cent over FY06-17. 77 50 -10% 22 26 30 32 34 38 41 43 47 51 55 59 . During FY17, international passenger traffic increased by 8.5 per 0 -20% cent. FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17 International Domestic Growth-International Growth-Domestic Growth in passenger traffic set to remain strong in future th 300 12 Plan Period 250 209 200 11th Plan Period 150 10th Plan Period 122 100 26 71 50 26 41 60 0 14 FY02 FY07 FY12 FY17E Domestic passenger throughput Domestic (million) International passenger throughput international (million) Notes: YoY – Year on Year, FY – Indian Financial Year (April – March) Source: Airports Authority of India, Ministry of Civil Aviation 12 Aviation For updated information, please visit www.ibef.org FREIGHT TRAFFIC GREW AT A CAGR OF 6.8 PER CENT DURING FY06 TO FY16 … (1/2) . Total freight traffic registered a CAGR of 7.08 per cent over FY06-17 InternationalVisakhapatnam freight traffic portwas traffic61.3 per (million cent of tonnes) the total in 2016 . During FY06-17, domestic freight traffic increased at a CAGR of 7.95 3,500 per cent, while international freight traffic grew at a CAGR of 6.58 per cent during the same period. 3,000 . In FY17, domestic freight traffic stood at 1,123.18 million tonnes, while international freight traffic was at 1,855.06 million tonnes. 1,123 2,500 . During FY17, domestic freight traffic increased at 7.39 per cent while 1,046 986 international freight traffic increased at 11.86 per cent in comparison 852 812 840 with FY16. 2,000 784 689 . By 2023, total freight traffic is expected to touch 4.14 million tonnes exhibiting growth at a CAGR of 7.27 per cent between FY2016 and 1,855 1,500 568 552 530 FY23. In addition, international freight traffic is expected to grow at a 1,658 1,542 484 1,496 1,468 CAGR of 7.13 per cent while domestic freight traffic is expected to 1,440 1,407 1,000 grow at a CAGR 7.50 per cent between FY2016 and FY23. 1,271 1,149 1,147 920 1,023 500 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 International( '000 Tonnes) Domestic ('000 Tonnes) Source: Airports Authority of India 13 Aviation For updated information, please visit www.ibef.org AND IS POISED TO GROW FURTHER … (2/2) .