Our Services : Industry Domain 1 : Aviation
India’s civil aviation industry is on a high-growth trajectory. India aims to become the third-largest aviation market by 2020 and the largest by 2030.
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. India is the ninth-largest civil aviation market in the world, with a market size of around US$ 16 billion.
“The world is focused on Indian aviation – from manufacturers, tourism boards, airlines and global businesses to individual travellers, shippers and businessmen. If we can find common purpose among all stakeholders in Indian aviation, a bright future is at hand,” said Mr. Tony Tyler, Director General and CEO, International Air Transport Association (IATA).
Market Size
In the second quarter of 2015, domestic air passenger traffic surged 19.2 per cent to 20.3 million from 17 million in the corresponding period a year ago. Total passenger carried in June 2015 increased 13 per cent Y-o-Y to 8.8 million from 7.8 million in June 2014. International and domestic passenger traffic grew 5.3 per cent and 16 per cent, respectively, in June 2015.
In June 2015, total freight carried rose 5.4 per cent Y-o-Y to 222,990 tonnes vis-à-vis 211,590 tonnes in June 2014. International freight movement witnessed higher growth (7.1 per cent) compared with domestic freight movement (2.6 per cent).
In June 2015, total aircraft movements at all Indian airports stood at 141,620, which was 8 per cent higher than June 2014. International and domestic aircraft movements increased 6.5 per cent and 8.4 per cent, respectively, in June 2015.
Over the next five years, domestic and international passenger traffic are expected to increase at an annual average rate of 12 per cent and 8 per cent, respectively, while domestic and international cargo are estimated to rise at an average annual rate of 12 per cent and 10 per cent, respectively.
The airlines operating in India are projected to record a collective operating profit of Rs 8,100 crore (US$ 1.29 billion) in fiscal year 2016, according to Crisil Ltd.
Investment
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 May 2015 stood at US$ 573.18 million.
Key investments and developments in India’s aviation industry include:
Government Initiatives
Government agencies project that around 500 brown field and greenfield airports would be required by 2020. The private sector is being encouraged to become actively involved in the construction of airports through different Public Private Partnership models, with substantial state support in terms of financing, concessional land allotment, tax holidays and other incentives.
Some major initiatives undertaken by the government are:
Road Ahead
India’s aviation industry is largely untapped with huge growth opportunities, considering that air transport is still expensive for majority of the country’s population, of which nearly 40 per cent is the upwardly mobile middle class. NMG helps industry stakeholders to engage and collaborate with policy makers to implement efficient and rational decisions that would boost India’s civil aviation industry with sustainability and growt. NMG with team of their experts create the right policies and relentless focus on quality, cost and passenger interest, where by India would be well placed to achieve its vision of becoming the third-largest aviation market by 2020 and the largest by 2030.
Winston Churchill, a leader of outstanding qualities, once said,
"A pessimist sees the difficulty in every opportunity, An optimist sees the opportunity in every difficulty."