India to be 3rd largest aviation market by departure by 2019
As per a report by global consultancy and research firm, Centre for Asia Pacific Aviation (CAPA), India will be world’s third largest aviation market for departures by 2019.
Highlights of report by Centre for Asia Pacific Aviation (CAPA):
Currently, India is the fourth largest aviation market in the world with 131 million passengers per annum (for the year 2016).
- US is the largest aviation market with 815 million passengers, followed by China (490 million passengers) and Japan(141 million passengers).
- However, the report has cautioned that Indian airports are ill-prepared to handle the increase in passengers.
- It is estimated that Indian airport system would exceed its maximum structural capacity by FY 2022. This could happen much sooner if work on the new airport projects gets delayed.
- In aviation parlance, quantum of maximum passengers an airport can handle if all the possible infrastructure and operational improvements are carried out is referred to as maximum structural capacity.
- The report has outlines that airports of Mumbai, Delhi and Chennai are at the highest risk of saturation whereas smaller airports like Agartala, Guwahati, Kozhikode, Lucknow and Pune are already operating beyond their design capacity.
- Over the next five years, to cater to the rising passenger flow, Indian airlines operator would induct nearly 350-400 aircraft in their existing fleet. This will further create new problems such as availability of arrival/departure time slots and parking bays.
- It has been estimated that 55 new airports will be required by 2030, which would need 150000 to 200000 acres of land and will entail USD36-45 billion of investment.
Indian Aviation Market (Arrivals+Departures) – Growth Forecast:
- In context of arrivals plus departures, Global airlines’ body International Air Transport Association (IATA) has projected that India will become the third largest aviation market by 2025.
- However, looking at the current trend, CAPA estimates that India will climb up to the third spot (for arrivals+departures) by the end of 2022-23.
- For 2022-23, Indian airports will serve over 460 million fliers, up from 265 million in 2017-18.