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Air was once considered a mode of transportation for the elite in India but with the rise in per capita income and increasing affordability of air fares the expenditure by Indian travelers is expected to reach Rs. 9.5 lakh crores by 2021. From just 50 operational airports in 2000, India has come a long way as the figure has increased by 150% (as reported in September 2020).
Due to the nation wide lockdown during the coronavirus pandemic, there was a negative impact on the aviation sector due to low passenger traffic. However, it is still believed that by 2024, India will reach the 3rd rank from its current 7th rank globally with a plan to inaugurate 100 more airports by then.
The airports infrastructure market can be segmented in the following ways:
Airport type – This is sub categorized into Brownfield and Greenfield airports. The Greenfield airports are to be seen on a rise in the upcoming years to meet international standards. Raj Gandhi International Airport was the first greenfield airport in India. The Government proposes to increase greenfield airports under the Private Public Ownership Model due to the previous success.
Regional and vertical segmentation – The Northern and Western region have greater demand and pressure. The domestic airports in India are to grow at a faster pace as compared to international airports due to higher passenger and freight traffic in the domestic segment.
Capacity utilization for the 6 key airports in India ranged between 84%-100% which shows that further development of infrastructure is required. To meet these demands new runways and terminals have been planned to add and increase the passenger capacity of airports to 110 million in Delhi by 2023. Jewar and Navi Mumbai airports will help in reducing pressure on Delhi and Mumbai airports.
The other ways in which the market can be segmented is application, component and ownership.
UDAN (Ude Desh ka Aam Nagrik) Scheme : This will boost regional connectivity and improve and develop infrastructure in underserved and unserved airports. The development of 100 new airports have been proposed. 49 projects existed earlier.
Digi Yatra Platform :This will give a boost to the technological developments at the airports since it aims to enable biometrics based processing of passengers at the airport.
Private players – 7 airports in India will be improved under Public Private Partnership. The following are the names of the key private players with the names of the airports they are supposed to develop/ maintain/modernise:
The public private partnership model has been adopted and implemented successfully in India. One of the finest airports in the world has been developed under this scheme such as Chhatrapati Shivaji International Airport, Indira Gandhi International Airport, Rajiv Gandhi International Airport, Bengaluru International Airport and Cochin International Airport.