34 million passengers: India is the third largest domestic aviation market in the world and it is expected that by 2024, according to 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 in the country. Like other countries of the world, the aviation industry of India has come to a standstill in the Corona period. India is the third largest domestic aviation market in the world and it is expected that by 2024, according to the air passenger market (both domestically and internationally), Britain will become the third largest country behind.
How much is the size
Passenger traffic in India was 34.10 crore in FY 2019-20. In the last four years, it had grown at a compounded rate of 11.13 per cent. Domestic passenger traffic during this period 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 talk about freight i.e. freight air traffic, then in the last four years, it increased by 5.32 percent year-on-year to reach 33 lakh tonnes in 2019-20. The Indian government is constantly trying to increase air traffic. As of March 2019, a total of 103 airports were operating in India, the number of which is planned to be increased to 200 by FY 2039-40.
Similarly, the number of airplanes can reach 1,100 by the year 2027. IndiGo has the highest number of 250 airplanes and before Kovid in January it was operating around 1500 flights every day. According to 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 in the Indian airport sector. The government has allowed 100 percent FDI in this sector.
Airports in 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 example, Delhi International Indira 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 in the country. Adani is also now operating the Mumbai International Airport.
Flight UDAN Scheme
Under the UDAN scheme, the government is running a campaign to connect small cities of the country with air traffic. Under this, a maximum fare of 2500 rupees is charged for an hour long flight. In August 2020, the government announced the addition of several new cities under UDAN 4.0.
21 thousand crore loss due to corona crisis!
According to an ICRA report, the business of the Indian aviation industry declined by 73 per cent year-on-year between May 25, 2020 to October 31, 2020 due to the Corona crisis and the aviation industry lost about 21,000 crore in this financial year. There may be a loss of Rs.
Not only this, in the next financial year (FY2021-22), the debt burden of this industry can increase to Rs 50,000 crore. According to Iqra, in the next two years, this industry may need a fund of about Rs 35,000 crore.
