ibef印度机场分析英文2018

TableofContent

TOC\o"1-2"\h\z\u

ExecutiveSummary 3

AdvantageIndia 4

MarketOverview 6

RecenttrendsandStrategies 17

GrowthDrivers 21

Opportunities 32

IndustryAssociations 34

UsefulInformation… 36

EXECUTIVESUMMARY

IndiaissettosurpassUKandbecomethethirdlargestaviationmarketaround2024.^

By2020,passengertrafficatIndianairportsisexpectedtoincreaseto421millionfrom308.75millionin2017-18.

During Apr-Sep2018,air passenger traffic stood at169.45million.

ContributionoftravelandtourismtoIndia’sGDPisexpectedtoincreasefromUS$234.04billionin2017toUS$251.64billionin2018.

ThecontributionisfurtherforecastedtoincreasetoUS$492.21billionby2028F.

AirpassengertrafficinIndia(million)

TravelandTourismTotalContributiontoGDP*(US$billion)

600 CAGR6.99%

400 492.21

200

234.03 251.64

Businessandleisuretraveltoboostgrowth.

SpendingonbusinesstravelisestimatedtoincreasetoUS$216.94billionin2018andUS$24.41billionin2028FfromUS$11.61billionin2017,whileonleisuretravelisforecasttorisetoUS$12.38billionin2018andUS$432.35billionin2028fromUS$201.71billionin

2017 2018E 2028F

BusinessandLeisureTravelSpending(US$billion)

500

400

300

200

100

421.00

308.75

169.45

FY18

FY19**

2020F

600.00

400.00

432.35

200.00

201.7111.61

216.9412.38

24.41

0.00

2017

LeisureTravel

2018E

BusinessTravel

2028F

Forupdatedinformation,pleasevisitwww.i

3 Aviation

2017.

Note:*Atrealprices,E–Estimated,F–Forecasted,Conversionrate-US$1=Rs65.12,

**-UptoSeptember2018,^AsperIATAforecasts

Source:WorldTravelandTourismCouncil,AirportAuthorityofIndia

Aviation

ADVANTAGEINDIA

ADVANTAGEINDIA

5

Aviation

Forupdatedinformation,pleasevisit

Risingworkinggroupandwideningmiddleclassdemographyisexpectedtoboostdemand

Indiaplanstoincreasethenumberofairportsto250by2030tocatertogrowingleisureandbusinesstravel

Countrywillbecomethethirdlargestaviationmarketintermsofpassengersby2024.^

Freighttrafficalsolikelytogoupastradewiththerestoftheworldincreases

India’saviationindustryisexpectedtowitnessRs1lakhcrore(US$15.52billion)worthofinvestmentsinthenextfiveyears.

GrowingprivatesectorparticipationthroughthePublic-PrivatePartnership(PPP)route

GrowthinaviationaccentuatingdemandforMROfacilities

ExpenditureinMROaccountsfor13-15percentoftotalrevenues;itisthesecond-highestexpenseafterfuelcost

By2020,theMROindustryislikelytogrowoverUS$1.5billionfromUS$0.95billionin2016-17.

ADVANTAGEINDIA

Thegovernmenthasbeenencouragingprivatesectorparticipation

Foreigninvestmentupto49percentisallowedunderautomaticrouteinscheduledairtransportservice,regionalairtransportserviceanddomesticscheduledpassengerairline.

Notes:FDI–ForeignDirectInvestment,MRO–Maintenance,RepairandOverhaul;FY–IndianFinancialYear(April–March),^AsperIATAforecasts

Source:MinistryofCivilAviation,MROIndia

Aviation

MARKETOVERVIEW

EVOLUTIONOFTHEINDIANAVIATIONSECTOR

Indiaisthe9thlargestcivilaviationmarketintheworld,InFY18,domesticpassengertrafficwitnessedagrowthrateof18.3percent

InFY18,airportsinIndiawitnessedadomesticpassengertrafficofabout243.28millionpeople.

InvestmentsworthUS$6billionareexpectedinthecountry'sairportsectorin5years

India’scivilaviationmarketissettobecometheworld’sthird*largestby2024

In-servicefleetsizeofIndianairlinesstoodat588airplanes,asofMay2018.Itisfurtherexpectedtogrowto1,100planesby2027.

Scheduledairlines:distanceflown(mnkm)

199

Non-scheduledairlinesinoperation

39

Numberofaircrafts

225

CargoHandled

703,000

1,315.23

111

588

3,357,028

125

2000

(2017)

(FY19^)

(FY19^)

(FY18)

(FY17)

Numberofairports

50

Note:*AsperIATAforecasts,FY–IndianFinancialYear(April–March),mnkm–MillionKilometers,FY19^-asofMay2018

Source:AirportsAuthorityofIndia,MinistryofStatisticsandProgrammeImplementation,MinistryofCivilAviation,NewsArticles

120.00%

100.00%

18.84%

21.21%

63.87%

80.00%

60.00%

40.00%

20.00%

0.00%

Aircraftmovement Passengertraffic

FreightTraffic

Domestic International

ActivityinAAIairports-shares(%)–FY18

AIRPORTSANDAIRSTRIPS

Non-operational(9)

Domesticairports(66)

AAImanaged(125)

AirportsandairstripsinIndia(464)

Operational(90)

Customsairports(7)

Non-AAIairportsandairstrips(339)

Civilenclaves(26)

International(17)

ActivityinAAIairports-shares(%)–FY18

Basicfacts

AirportsAuthorityofIndia(AAI)was–

Establishedin1994undertheAirportsAuthorityAct

Responsiblefordeveloping,financing,operatingandmaintainingallgovernmentairports

TheAircraftAct(1934)governsremainingairports

81.16%

78.79%

36.13%

Note:AAI–AirportsAuthorityofIndia,JV–JointVenture,FY–IndianFinancialYear(April–March)

Source:AirportsAuthorityofIndia

MAJORAIRLINESOPERATINGININDIA

SpiceJet

Marketshare:12.0percentPassengerloadtraffic:93.2percent

GoAir

Marketshare:8.7percentPassengerloadtraffic:90.6percent

JetAirways

Marketshare:14.2percentPassengerloadtraffic:84.9percent

Jetlite

Marketshare:1.6percentPassengerloadtraffic:83.0percent

AirIndia

Marketshare:11.8percentPassengerloadtraffic:81.1percent

Indigo

Marketshare:43.2percentPassengerloadtraffic:82.7percent

Note:MarketShareandPassengerLoadDataforthemonthofSeptember2018

Source:DirectorateGeneralofCivilAviation

MumbaiPassengertraffichandledin;

FY16:41.7million;

FY17:45.2million

FY18:48.50million

Apr-Sep2018:24.73million

KolkataPassengertraffichandledin

FY16:12.4million;

FY17:14.35million

FY18:19.89million

Apr-Sep2018:10.60million

DelhiPassengertraffichandledin

FY16:48million;

FY17:57.7million

FY18:65.69million

Apr-Sep2018:34.90million

MAJORAIRPORTSININDIA

ChennaiPassengertraffichandledin

FY16:15.2million;

FY17:16.7million

FY18:20.36million

Apr-Sep2018:11.33million

BengaluruPassengertraffichandledin

FY16:19million;

FY17:22million

FY18:26.91million

Apr-Sep2018:16.16million

HyderabadPassengertraffichandledin

FY16:12.4million

FY17:15.24million

FY18:18.16million

Apr-Sep2018:10.42million

Note:FY–IndianFinancialYear(April–March)

Source:AAI

PASSENGERTRAFFIC…(1/2)

350

#CAGR12.72%

300

250

200

150

100

50

Passenger*traffic(million)

India’spassenger*trafficgrewat16.52percentyearonyeartoreach308.75millioninFY18.ItgrewataCAGRof12.72percentduringFY06-FY18.

Passenger*trafficinIndiaduringApr-Sep2018was169.45million.

308.75

Growthinpassengertraffichasbeenstrongsincethenewmillennium,especiallywithrisingincomesandlow-costaviation.

223.62

264.97

By2036,Indiaisestimatedtohave480millionflyers,whichwillbemorethanthatofJapan(justunder225million)andGermany(justover200million)combined.

162.30

159.30

169.03

190.10

169.45

IndiahasbecomethethirdlargestdomesticaviationmarketintheworldandisexpectedtoovertakeUKtobecomethethirdlargestairpassenger*marketby2024#.

73.35

96.38

116.89

108.88

123.73

143.43

InMay2018,Indiapostedthehighestgrowthinairpassengertrafficat13.3percentyear-on-yearintheAsiaPacificregion.

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19^

Notes:CAGR–CompoundAnnualGrowthRate,FY–IndianFinancialYear(April–March),*passenger–Domestic+International,#CAGRistillFY18,^-UptoSeptember2018,#AsperIATAforecasts

Source:AssociationofPrivateAirportOperator,AirportsAuthorityofIndia

PASSENGERTRAFFIC…(2/2)

350

50%

300

40%

250

30%

200

20%

33.75

150

10%

100

0%

50

-10%

-20%

Domestic

Growth-Domestic

International

Growth-International

Internationalanddomesticpassengertraffic(million)

DomesticpassengertrafficexpandedataCAGRof13.91percentoverFY06–18.

InternationalpassengertrafficregisteredgrowthataCAGRof9.36percentoverFY06-18.

59.29

65.48

DuringApr-Sep2018,domesticpassengertrafficstoodat135.70millionwhileinternationaltrafficstoodat33.75million.

243.28

DomesticpassengertrafficgrewYoYby18.28percenttoreach

121.5140.80

116.9743.03

4746.62

5150.80

54.72

205.68

243.28millioninFY18andisexpectedtobecome293millioninFY20E.

50.98 22.37

70.62

87.06

77.30

89.39

105.52

25.87

29.81

31.58

34.37

37.91

168.89

135.70

InternationalpassengergrewYoYby10.43percenttoreach65.48millioninFY18andtrafficisexpectedtobecome76millioninFY20E.

FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18

*

Notes:E-Estimate,YoY–YearonYear,FY–IndianFinancialYear(April–March),*-UptoSeptember2018

Source:AirportsAuthorityofIndia,MinistryofCivilAviation

FREIGHTTRAFFIC…(1/2)

4,000

3,500

3,000

2,500

2,000

675.06

1,500

1,000

500

International('000Tonnes)

Domestic('000Tonnes)

InternationalandDomesticFreightTraffic

DuringFY06-18,domesticfreighttrafficincreasedataCAGRof7.96percent,whileinternationalfreighttrafficgrewataCAGRof7.30percentduringthesameperiod.

1,213.06

InFY18,domesticfreighttrafficstoodat1,213.06tonnes,whileinternationalfreighttrafficwasat2,143.97tonnes.

986.00

1,045.92

1,123.18

InthemonthofApr-Sep2018,domesticfreighttrafficstoodat675,063tonneswhileinternationalfreightstoodat1.12milliontonnes.

920.00484.00

1,023.00530.00

1,147.00568.00

1,149.00552.00

1,271.00

689.00

1,496.00

852.00

1,468.00

812.00

1,407.00 784.00

1,440.00

840.00

1,542.00

1,658.35

1,855.06

2,143.97

1,120.68

By2023,totalfreighttrafficisexpectedtotouch4.14milliontonnesexhibitinggrowthataCAGRof7.27percentbetweenFY2016andFY23.Inaddition,internationalfreighttrafficisexpectedtogrowataCAGRof7.13percentwhiledomesticfreighttrafficisexpectedtogrowataCAGR7.50percentbetweenFY2016andFY23.

Note:*-UptoSeptember2018

FREIGHTTRAFFIC…(2/2)

4.00

#CAGR7.56%

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

Freighttraffic(milliontonnes)

FreighttrafficgrewataCAGRof7.56percentduringFY06-FY18tofrom1.40millionMTto3.36millionMT.DuringApr-Sep2018,totalfreighttraffichandledstoodat1.80milliontonnes.

FreighttrafficonairportsinIndiaisexpectedtocross11.4milliontonnesby2032.

2.98

3.36

GrowthinimportandexportinIndiawillbethekeydriverforgrowthinfreighttrafficas30percentoftotaltradeisundertakenviaairways.

1.40

1.55

1.72

1.70

1.96

2.35

2.28

2.19

2.28

2.53

2.70

1.80

Airportsacrosstheglobeareplanningonincreasingtheirspendingonnewtechnologytokeepupwithsurgingpassengertraffic,whichisexpectedtodoubleto370millionby2020.

Notes:FY–IndianFinancialYear(April–March),#CAGRisuptoFY18,FY19*-uptoSeptember2018

2.50

20%

2.00

15%

10%

1.50

5%

1.00

0%

0.50

-5%

0.00

-10%

Aircraftmovement

GrowthinAircraftmovement

Totalaircraftmovement(million)

2,500

30%

25%

2,000

20%

1,500

15%

10%

1,000

5%

0%

500

-5%

-10%

International('000)Growth-International(%)

Domestic('000)Growth-Domestic(%)

Aircraftmovementgrowth

1,059

1,049

1,094

1,235

314 1,165

1,201

1,260

1,481

1,502

1,887

1,064

1.39

1.54

1.48

1.54

1.60

1.80

2.05

2.32

AIRCRAFTMOVEMENT

FY07

216

862

FY08

249

270 1,036

FY09

FY10

FY11

282

300

FY12

309

FY13

FY14

336

346

FY15

FY16

375

FY17

365

FY18

438

FY19*

223

FY07

1.31

FY08

1.31

FY09

1.31

FY10

1.33

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19*

1.29

AircraftmovementgrewataCAGRof5.37percentfrom1.31millioninFY07to2.32millionduringFY18.

DuringFY07-18,domesticaircraftmovementincreasedataCAGRof7.38percent,whileinternationalaircraftmovementexpandedat6.64percentCAGRoverthesameperiod.India’sdomesticandinternationalaircraftmovementsgrew14.40percenty-o-yand9.40percenty-o-yto1,886.63thousandand437.93thousandduring2017-18,respectively.

DuringApr-Sep2018,domesticaircraftmovementstoodat1.06millionwhileinternationalaircraftmovementstoodat0.22million.

Notes:CAGR–CompoundAnnualGrowthRateFY–IndianFinancialYear(April–March)YoY–YearonYear,*-UptoSeptember2018

Source:AssociationofPrivateAirportOperators,AirportsAuthorityofIndia

DevelopmentofBengaluruInternationalAirport

KEYPUBLICANDPRIVATESECTORPLAYERS

Until2013,AAIwastheonlymajorplayerinvolvedindevelopingandupgradingairportsinIndia

Postliberalisation,privatesectorparticipationinthesectorhasbeenincreasing

Majorprivatesectorplayers

DevelopmentofHyderabadInternationalAirport;modernisationof

DelhiInternationalAirport

DevelopmentofBengaluruInternationalAirport

ModernisationofMumbaiInternationalAirport

GovernmentofIndiahasgiven‘in-principle’approvalto19airportsoutofwhich7aregoingtobedevelopedonaPPPbasiswithaninvestmentofRs27,000crore(US$41.89billion).

Notes:AAI–AirportsAuthorityofIndia

Aviation

RECENTTRENDSANDSTRATEGIES

NOTABLETRENDSINTHEAIRPORTSSECTOR

RisingprivateparticipationandInvestments

Currently,fiveinternationalairportshavebeencompletedsuccessfullyunderPPPmode

ThesectorisexpectedtowitnessinvestmentsworthUS$25billionby2027.

FourexistingairportsandtwogreenfieldprojectswillbeofferedonPPPbasiswhichisexpectedtoattractinvestmentsfromprivateplayers

DelhiInternationalAirport,aGMRledconsortium,signedalandlicenseagreementwithAirbustosetupIndia’s1stfullflightsimulatorattheAerocity,IndiraGandhiInternational(IGI)Airport.

Greateruseofnon-

scheduledairlines

Risingbusinessactivityleadingtohigherdemandfornon-scheduledairlines

AsofJuly2018,thereare109operators(NSOP)

Userdevelopmentfees

Increasinguseofdevelopmentfeesbyairportdevelopersandoperators

AirportDevelopmentFee:Delhi,Mumbaiairportstofundexpansion

UserDevelopmentFee:Hyderabad,Bengaluruairportsformaintenance

Focusonnon-aeronauticalrevenue

IndianairportsareemulatingtheSEZ-aerotropolismodeltoenhancerevenues;focusonrevenuesfromretail,advertising,vehicleparking,etc.

Withtheinitiativeofdisplaying“Artforacause,”NagpurairportbecameIndia’sfirstairporttotakeupthecauseofempoweringthegirlchildinauniqueway.

Absenceofcomplementarymealsinlow-costairlineshaveboostedtheF&Bretailsegmentatairports

Notes:FY–IndianFinancialYear(April–March),NSOP–NonScheduleOperatorsPermit

Source:DGCA

STRATEGIESADOPTED…(1/2)

CapacitywillalsoincreasewithnewterminalscomingupinMumbai,Bengaluru,ChennaiandKolkata

Expansion

Indiancarriersareexpectedtodoubletheirfleetcapacitytoaround1,100aircraftsby2027.

InAugust2018,SpiceJetoperatedIndia’sfirstevertestflightpoweredbybiofuelfromDehraduntoDelhi.

Ancillaryservices

IndianLCC’Sarelookingforwardtoincreasetheirancillaryservices,withouttamperingtheirbusinessmodels.Thisincludesserviceslikeloungeaccess,priorityboarding,customerloyaltymembershipsandcustomermeals

TheAAIhasallowedtheBRTSbusestoforayintheairportpremisesinSurat.Theinitiativeistoallowthepassengerstoreachairportsontimeandallowsmoothertransit.

Increasingoperations

IndianLCC’sarelookingforwardtoincreasetheirlowcostproductsonrouteswhichwilltakeuptofourhours(shorterinternationalroutes)

Thiswillallowdeleveragingofdomesticfleet,increasingaircraftutilisationandimprovingcommercialperformance

Chennai,withitsstrategiclocationinSouthIndiahasastrongpotentialtobecomeahub,withconnectingflightstoGulfandacrossSouthEastAsia

Source:CentralAsia-PacificAviation

STRATEGIESADOPTED…(2/2)

Government’spush

UnderUnionBudget2018-19,thegovernmentintroducedNextGenAirportsforBharat(NABH)-NirmanSchemewhichaimsafive-foldincreaseinIndia’sairportcapacitytohandleabilliontripsperyear.

InFebruary2018,thePrimeMinisterofIndialaunchedtheconstructionofNaviMumbaiairportwhichisexpectedtobebuiltatacostofUS$2.58billion.Thefirstphaseoftheairportwillbecompletedbyendof2019.

InSeptember2018,thePrimeMinisterofIndiainauguratedJharsugudaAirportinOdisha.

InSeptember2018,thePrimeMinisterofIndiaalsoinauguratedSikkim’sfirsteverairport,PakyongAirport.ItisAAI’sfirstgreenfieldairportconstruction.

AsofOctober2018,theGovernmentofIndiahasreleasedapolicyonbiometricdigitalprocessingofpassengersatairportscalled‘DigitalYatra’,ThepolicywillensureuniformimplementationandpassengerexperienceacrossIndianairportsthroughaconnectedecosystem.

Note:AAI–AirportAuthorityofIndia

Source:CentralAsia-PacificAviation,NewsArticles

Aviation

GROWTHDRIVERS

STRONGDEMANDANDPOLICYSUPPORTDRIVINGINVESTMENTS

Growingdemand

Expandingmiddleincomegroupandworkingpopulation

Risingdomesticandforeigntouristsandtravellers

Stronggrowthinexternaltrade

Policysupport

Greatergovernmentfocusoninfrastructure

Inviting

Increasingliberalisation,OpenSkyPolicy

Policysops,FDIencouragement

Increasinginvestments

Resultingin

AAIdrivinglargemodernisation,developmentprojects;expansionandupgradationofexistingairports;developmentoflow-costairports

Increasingprivatesectorparticipation,increasinggreenfieldprojects

Strongprojecteddemandmakingreturnsattractive

TRAVELANDTOURISM

Travelandtourismspending(US$billion)

250.0

200.0

150.0

100.0

50.0

0.0

2009201020112012201320142015201620172018F

BusinessTravelandTourismSpendingLeisureTravel&TourismSpending

TheshareoftravelandtourisminIndia’sGDPwas9.4percentin2017;andisexpectedtogrowataCAGRof7.5percentin2018.Itisalsoexpectedtogrowat6.9percentperannumbetween2018E-2028.

201.7

216.9

EmergenceofbusinesshubslikeMumbai(Finance),Bengaluru(IT),Chennai(IT),Delhi(Manufacturing,IT)islikelytoboostbusinesstravelaswell.

180.0

Leisuretravelspending(inboundanddomestic)generated94.6percentofdirectTravel&TourismGDPin2017US$201.7billioncomparedwith5.4percentforbusinesstravelspendingUS$11.6billion

18.8

48.7

22.3

60.9

25.5

69.3

26.4

68.7

20.8

77.9

17.8

90.2

18.7

92.7

103

11.6

12.4

Leisuretravelspendingisexpectedtogrowat7.6percentin2018andriseto7.1percentperannumbetween2018E–2028whilebusinesstravelspendingisexpectedtogrowat6.7percentin2018andriseto7.0percentperannumbetween2018E–2028.

Notes:IT–InformationTechnology,F–Forecast,E-Estimate

Source:WorldTravelandTourismCouncil,MakeinIndia,GlobalBusinessTravelAssociation

EXPORTSANDIMPORTS

Exportsandimports(US$billion)

600

500

400

300

200

100

Exports Imports

OverFY09-18,

India’sexportsexpandedataCAGRof5.61percenttoUS$

302.84billioninFY18.

ImportsregisteredaCAGRof4.71percentwhichreachedtoUS$459.87billioninFY18.

489.32

490.74

450.20

447.52

459.67

Growingtradeaugurswellforairportsastheyhandleabout30percentofIndia’stotaltrade(byvalue)

Increasingairline

operators

FDIinaviationand

liberalisedaviationpolicy

Higheraircraft

movement

Growthinpassenger

traffic

Riseinfreighttraffic

185.29

303.69

178.75

288.37

249.82

369.77

305.96

300.40

314.41

309.56

262.03

380.60

274.65

380.38

302.84

164.04

258.36

DuringApr–Sep2018,India’smerchandiseexportsandimportsstoodatUS$164.04billionandUS$258.36billion,respectively.

Notes:CAGR–CompoundAnnualGrowthRate,FY–IndianFinancialYear(April–March),FY19*-April–September2018

Source:MinistryofCommerce

POLICYSUPPORT…(1/3)

Greaterfocusoninfrastructure

Liberalisation,OpenSkyPolicy

AAIisgoingtoinvestRs15,000crore(US$2.32billion)in2018-19forexpandingexistingterminalsandconstructing15newones.

TheIndiangovernmentisplanningtoinvestUS$1.83billionfordevelopmentofairportinfrastructurealongwithaviationnavigationservicesby2026.

Withtheopeningoftheairportsectortoprivateparticipation,sixairportsacrossmajorcitiesarebeingdevelopedunderthePPPmodel

Currently60percentofairporttrafficishandledunderthePPPmodel,whiletheremaining40percentismanagedbytheAAI

Increasedtrafficrightsunderbilateralagreementswithforeigncountries

Indiasignedits1stopenskiesagreementwithGreece

InMay2017,IndiaandSpainsignedanMoUforcooperationincivilaviationindustry.TheMOUwouldspurgreatertrade,investment,tourismandculturalexchangesbetweenboththecountries.

InApril2017,BrusselsAirlineslauncheditsservicefromBrusselstoMumbai,its1stflighttoAsia.ThelaunchisapartofLufthansa’sgroupstrategytoexpanditsbusinessinIndia.

InJune2018,IndiahassignedanopenskyagreementwithAustraliaallowingairlinesoneithersidetoofferunlimitedseatstosixIndianmetrocitiesandvariousAustraliancities.

NortheastIndia

Over30airportdevelopmentprojectsareunderprogressacrossvariousregionsinNortheastIndia

AAIplanstodevelopover20airportsintierIIandIIIcitiesinnext5years

TheAAIplanstodevelopGuwahatiasaninter-regionalhubandAgartala,ImphalandDibrugarhasintra-regionalhubs

Notes:Indiacurrentlyhasbilateralairserviceagreementswith104countries.TheseincludeBrazil,27membersoftheEU,andChina.In2008trafficrightswerebeenenhancedwith

Mexico,SaudiArabia,Netherlands,Qatar,Iran,JapanandTurkey,FDI–ForeignDirectInvestment,GOI–GovernmentofIndia

POLICYSUPPORT…(2/3)

Taxesandduties

100percenttaxexemptionforairportprojectsforaperiodof10years

IndianaircraftManufacture,RepairandOverhaul(MRO)serviceprovidersareexemptedcompletelyfromcustomsandcountervailingduties

Budgetarysupport

IntheUnionBudgetforFY18,GovernmentofIndia,hasearmarkedUS$100.4millionforAirIndiaLimited.

Also,anamountofUS$11.32millionhasbeenallocatedtoAirportsAuthorityofIndiafor2018-19.

ThegovernmenthasallocatedasumofUS$32.44milliontoDirectorateGeneralofCivilAviationtoimplementvariousschemes.

ThegovernmenthasalsosupportedtheBureauofCivilAviationSecuritywithUS$10.81milliontomeettheirexpenditure.

AllocationtoCivilAviationministryhasbeentripledtoRs6,602.86crore(US$1,019.9million)underUnionBudget2018-19.

NationalCivilAviationPolicy,2016

Thepolicycovers22areasofthecivilaviationsector.

RegionalConnectivityScheme(RCS)hasbeenlaunchedunderthepolicy.

Airlinescancommenceinternationaloperationsandhavetodeploy20aircraftsor20percentoftotalcapacity(whicheverishigher)fordomesticoperations.

Notes:AAI–AirportsAuthorityofIndia,DGCA–DirectorateGeneralofCivilAviation,FY–IndianFinancialYear(April–March)

Source::MinistryofCivilAviation

POLICYSUPPORT…(3/3)

Metroairports

TheAAIaimstobringaround250airportsunderoperationacrossthecountryby2020

TheAAIhasdevelopedandupgradedover23metroairportsinthelast5years

Non-metroairports

TheAAIplanstospendUS$1.3billiononnon-metroprojectsoverthe5years(2013–17);mainlyfocusingonthemodernisationandupgradationofairports;NewairportsatItanagar,KohimaandGangtokarealsoplanned.

TheGovernmentofAndhraPradeshistodevelopgreenfieldairportsinsixcities-Nizamabad,Nellore,Kurnool,Ramagundam,TadepalligudemandKothagudemunderthePPPmodel.

Upfrontsubsidyhasbeenproposedthroughwhichnon-metroairportswouldbefundedbyimposing2percentlevyonbothdomesticandinternationalairfares.

About22airportstogetconnectedunderregionalconnectivityschemeofAAI.

EncouragementtoFDI

TheGOIhasallowed100percentFDIunderautomaticrouteforgreenfieldprojects,whereas,74percentFDIisallowedunderautomaticrouteforbrownfieldprojects.

100percentFDIisallowedunderautomaticrouteinscheduledairtransportservice,regionalairtransportserviceanddomesticscheduledpassengerairline.FDIover49percentwouldrequiregovernmentapproval.

Approvalof49percentFDIinaviationforforeigncarriers.

FDIinflowsinIndia’sairtransportsector(includingairfreight)reachedUS$1,658.23millionbetweenApril2000andJune2018.

PRIVATESECTORINVESTMENTINAIRPORTSRISING

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RecoursetothePublicPrivatePartnership(PPP)modelhasboostedprivatesectorinvestmentsinairports

PPProuteforfiveinternationalairports(Delhi,Mumbai,Cochin,Hyderabad,Bengaluru)mostnoteworthy

Increasingshareofprivatesectorinequitycomponentofmajorairports–

74percentprivateshareholdinginIGIAirport(Delhi)-ownedmajorlybyGMR(54percent),FraportAG(10percent),EramanMalaysia(10percent);restofthesharesownedbyAAI

74percentprivateshareholdinginCSIAirport(Mumbai)-ownedmajorlybyGVK(50.5percent),BidServicesDivision(Mauritius)Ltd.(13.5percent),ACSAGlobal(10percent);restofthesharesownedbyAAI

74percentprivateshareholdinginRGIAirport(Hyderabad)-ownedmajorlybyGMR(63percent),MalaysiaAirportsHoldingsBerhad(11percent);restofthesharesownedbyGovernmentofIndia(13percent)andGovernmentofAndhraPradesh(13percent)

74percentshareholdinginKempagowdaInternationalAirport(Bengaluru)–ownedmajorlybySiemensProjectVentures,Germany(40percent),Unique(FlughafenZurichAG)ZurichAirport,Switzerland(17percent),L&T,India(17percent);restofthesharesownedbyAAI(13percent)andKSIIDC,whichisanagencyownedbythestateofKarnataka,India(13percent)

InMarch2017,bysellingoff2offshorebonds,GMRplanstoraiseUS$250-300millionforrefinancingtheirdebt.InJune2017,GMRannouncedplanstorefinanceloansanddivestassetsinroadandpowersectorstocutdebtsoastoinvestuptoRs7,400(US$1.15billion)croretoexpandDelhiandHyderabadairports.

Source:Notes:KSIIDC–KarnatakaStateIndustrialandInfrastructureDevelopmentCorporationLtd.

PRIVATESECTORINVESTMENTINAIRPORTSRISING

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Delhi

(Modernisation,Terminal3)

Mumbai

(Modernisation)

Hyderabad

Bengaluru

Participationininternationalairportprojects

Terminal3constructioninDelhicompletedin2010

Terminal3-TotalcostUS$2.7billio