India's Minister for Aviation Ajit Singh stated (26-Mar-2013) India would be the third largest aviation market by 2020. Mr Singh informed that studies suggest, the countries airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of USD120 billion by 2020. He stated: "India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernised. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries". He added: "The prospects and possibilities of growth of Indian aviation markets are huge. The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support". [more - original PR]
India to be third largest aviation market by 2020 with 421m pax: India Minister for Aviation
You may also be interested in the following articles...
Northeast Asian airlines seek India connections to diversify away from SE Asia, China competition
Aviation has yet to define India’s role in the trans-Pacific growth story. Geography allows connections from North America to India via Europe, the Gulf and – more quietly – Northeast Asia. Northeast Asian airlines have a theoretical advantage linking India with the North American west coast. The challenge they face is fitting a square peg into a round hole.
The presence of Northeast Asian airlines is large in North America but small in India, while Southeast Asian airlines are small in North America but large in India. Cathay Pacific, and to a lesser extent All Nippon Airways, are in the strategic sweet spot, relatively. Growing China-India relations could result in Chinese airlines playing a larger role in this market. The different transit regions available mean that there is competition between partnerships and joint ventures. These pressures could grow as the Indian market continues expanding.
CAPA Airport Finance & Privatisation Review 2015/2016. The day has come for PPPs
CAPA's 170-page "Global Airport Finance and Privatisation review 2016 – the day has come for the PPP" is is the fourth in a series of CAPA reports on airport privatisation and investment published since Jan-2015.
During that time a number of deals have been concluded and announced across the world though their volume remains below the levels prior to 2008. One of the key trends is an identifiable increase in activity in public-private partnerships (PPPs) globally.
In a world where obtaining a viable return on investment remains a difficult task it is evident that investor sentiment once again favours long term transport infrastructure. Airports are among the well tested models for investment.