Indian Aviation Sector - Some Important Facts :

In value terms about 30% of India's foreign trade is handled by the airports. In total, there are 95 airports that include - 42 civil enclaves, 23 domestic airports, 16 international airports, 7 customs airports and 7 green field airports. Until recently only two private airlines - Jet Airways and Air Sahara are their in the industry but in the last two years a large number of low cost, budget airlines such as Air Deccan, SpiceJet and Kingfisher Airlines have entered the domestic market thereby increasing the competition and reducing the airfare. Due to cheaper air travel, the civil aviation sector is experiencing fast growth. During 2004-05, the total passenger traffic grew at 21.7% while the cargo traffic grew by 19.9%. The aircraft movement increased by 12.6% during the same year. Air travel is estimated to grow at a CAGR of 25% over the next 5 years. As a matter of fact, Delhi, Mumbai, Kolkata and Chennai airports account for about 63% of the total passenger traffic and 78% of the total freight traffic. This implies immediate improvement of the airport infrastructural facilities in the country. While modernization of Delhi and Mumbai airports is going on, two new international airports are being developed through public-private partnership at Bangalore and Hyderabad.

These ambitious airport infrastructure development schemes and programs are creating a large number of business opportunities for private sector participation. Some of them are :

Opportunities :

Growing air traffic (20% CAGR) and big ticket fleet additional plans. Resultant extra loads on existing facilities, which are creating large opportunities for private players. As development of airport infrastructure has become the major thrust area now, the government is taking a number of initiatives to encourage private sector participation in the development, modernization and up-gradation of airport infrastructure. Investments in airport sector are expected to be around Rs 400 billion over next 5 years. This include: Restructuring / Modernization of Delhi / Mumbai airports, Restructuring / Modernization of Chennai / Kolkata, Green Field airports in Bangalore, Hyderabad, Goa, Pune, Navi Mumbai, Nagpur, Gr. Noida, Up-gradations of 25 selected airports and Restructuring / Modernization of 57 selected airports.

Thus the aviation sector in the country is set to witness a robust growth during the coming years.