India is that the third largest domestic aviation market within the world and it’s expected that by 2024, consistent with the air passenger market (both domestically and internationally), Britain will become the third largest country behind.
Prior to the Corona period, the Indian Civil Aviation, ie the civil aviation sector, was among the fastest growing industry within the country. Like other countries of the planet , the aviation industry of India has come to a standstill within the Corona period. India is that the third largest domestic aviation market within the world and it’s expected that by 2024, consistent with the air passenger market (both domestically and internationally), Britain will become the third largest country behind.
How Much Is That The Size
Passenger traffic in India was 34.10 crore in FY 2019-20. within the last four years, it had grown at a compounded rate of 11.13 per cent. Domestic passenger traffic during this era was up to 27.45 crore. Domestic traffic grew at an annual rate of 12.91 percent. International passenger traffic from India was 6.65 crore.
If we mention freight i.e. freight traffic , then within the last four years, it increased by 5.32 percent year-on-year to succeed in 33 lakh tonnes in 2019-20. The Indian government is consistently trying to extend traffic . As of March 2019, a complete of 103 airports were operating in India, the amount of which is planned to be increased to 200 by FY 2039-40.
Similarly, the amount of airplanes can reach 1,100 by the year 2027. IndiGo has the very best number of 250 airplanes and before Kovid in January, it had been operating around 1500 flights a day . consistent with an estimate, by the year 2038, India will need around 2400 commercial planes.
100% FDI Allowed
From April 2000 to March 2020, FDI worth about 2.75 billion dollars (about 20 thousand crores) came within the Indian airport sector. the govt has allowed one hundred pc FDI during this sector.
Airports within the country are operated and developed by the Airport Authority of India (AAI). But many private sector companies have also been included under PPP in their development and operation. for instance , Delhi International Gandhi International Airport has been developed and operated by MGR Group Company Delhi International Airport Limited (DIAL).
Recently, the private sector Adani Group has been given the contract to develop and operate several airports within the country. Adani is additionally now operating the Mumbai International Airport.
Flight UDAN Scheme
Under the UDAN scheme, the govt is running a campaign to attach small cities of the country with traffic . Under this, a maximum fare of 2500 rupees is charged for an hour long flight. In August 2020, the govt announced the addition of several new cities under UDAN 4.0.
21 Thousand Crore Loss Thanks To Corona Crisis!
According to an ICRA report, the business of the Indian aviation industry declined by 73 per cent year-on-year between 25 May 2020 to 31 October 2020 thanks to the Corona crisis and therefore the aviation industry lost about 21,000 crore during this fiscal year . There could also be a loss of Rs.
Not only this, within the next fiscal year (FY2021-22), the debt burden of this industry can increase to Rs 50,000 crore. consistent with Iqra, within the next two years, this industry may have a fund of about Rs 35,000 crore.
(Figures from the India Brand Equity Foundation, Invest India and ICRA reports)