AVIATION BOOM

The country is seeing developments of numerous airports in metros and Tier II and III cities

- Molly R

Credit rating agency ICRA has estimated that domestic air passenger traffic in India will reach 154 million during the 2023-24 financial year, exceeding the pre-covid figure of 142 million recorded in the 2019-20 financial year. This represents a 13% increase in domestic air passenger traffic compared to the previous year.

The Indian aviation industry is currently evolving due to an underserved market. Jyotiraditya Scindia, the country's aviation minister, acknowledged this year that despite significant expansion, India is projected to be among the least penetrated of the top 20 global markets by 2030. The statement indicates a considerable gap between the industry's potential and achievement, emphasizing the need for further growth and expansion within the sector.

The Airports Authority of India (AAI) is set to invest Rs 300 billion ($3.6 billion) over the next five years to improve airport infrastructure across the country. Simultaneously, the Adani Group plans to invest double that amount, Rs 600 billion ($7.25 billion), in its airport business over the next five to 10 years. This investment will be used to expand seven of the existing airports in its portfolio.

READY FOR TAKE OFF

India stands at the cusp of a significant aviation transformation, marked by the strategic establishment of 14 new airports nationwide in the near future. This ambitious initiative undertaken by the Indian government is a move to display the country’s dedication to fostering economic advancement, bolstering connectivity, and promoting tourism.

Navi Mumbai airport is one of two landmark infrastructure projects in the city that will test the mettle of Adani, the mining-to-media conglomerate. The airport is being designed to reduce the transit time to catch connecting flights, ideally within 75 minutes in line with international norms.