Ministry of Civil Aviation Government of India Airports Infrastructure : The Business Opportunities.
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Transcript of Ministry of Civil Aviation Government of India Airports Infrastructure : The Business Opportunities.
Ministry of Civil Aviation
Government of India
Airports Infrastructure :
The Business Opportunities
Structure of Presentation
• Indian Aviation- The Emerging Story
• Airport Infrastructure Development– Policy Framework– Focus Areas
• Investment Opportunities
Indian Aviation- The Emerging Story
CURRENT SCENARIO
Number of Aircraft (Scheduled Operation) 321
Passengers – Domestic ( Millions) 69 – International( Millions) 26
Number of airports / airstrips 454
– AAI 97 – International Airports 16
Number of Airlines 14
Growth Story
Year International Domestic Total
No. in million
%age change
No. in million
%age change
No. in million
%age change
2003-04 16.64 12.20 32.14 11.20 48.78 11.60
2004-05 19.42 16.70 39.86 24.00 59.28 21.50
2005-06 22.36 15.10 50.98 27.90 73.34 23.70
2006-07 E 25.52 14.40 69.81 36.80 95.33 30.00
Year International Domestic Total
In ‘000 tonnes
%age change
In ‘000 tonnes
%age change
In ‘000 tonnes
%age change
2003-04 693.20 7.30 375.40 12.70 1068.60 9.10
2004-05 823.60 18.80 456.70 21.60 1280.30 19.80
2005-06 920.15 11.70 483.79 5.90 1403.94 9.70
2006-07 E 1013.12 12.00 531.08 9.10 1544.20 11.10
Pax
Cargo
Indian Market Evolution: 1992-2007 Indian Market Evolution: 1992-2007 Total Airport Passengers (millions)Total Airport Passengers (millions)
Passenger Traffic Growth Profile
3 New Airlines
Entry of low cost carriers
7 Airlines 14 Airlines
Vision 2020
PASSENGERS GROWTH : 15% P.A.
NO. OF AIRCRAFT (Schd.Operation) : 1000 AIR PASSENGERS : 280 million
COUNTRY OF MORE THAN 1 BILLION
SKY IS THE LIMITSKY IS THE LIMIT
Airport Infrastructure Development -
Policy Framework
Airport development in India- traditionally in public sector.
AAI Act and Aircraft Rules amended ( 2004) to enable private participation.
Public Private Participation (PPP) Model now the cornerstone of airport development.
100% FDI permitted in Greenfield Airports( Feb 2006)- Development of new airports permissible entirely in Private Sector as well.
Airport Development-
Focus Areas
Existing airports Capacity Constraints
AIRSIDE TERMINALS
Spread of Growth at other airports Development of Regional Airports
Initiatives On Airports
Metro Airports
Greenfield Airports
Regional Airports
Initiatives On Airports
Metro Airports DELHI & MUMBAI, THE TWO MAJOR INTERNATIONAL
AIRPORTS RESTRUCTURED THROUGH JV ROUTE (2006)
Greenfield Airports NEW GREENFIELD AIRPORTS UNDER CONSTRUCTION AT
HYDERABAD AND BANGALORE.
Non Metro Airports STATE OWNED AAI TAKING UP SELECT 35 NON-METRO
AIRPORTS FOR MODERNISATION.
CITY SIDE DEVELOPMENT OF NON-METRO AIRPORTS THROUGH PPP
Initiatives On Airports
Metro Airports
Delhi Airport
Taken up for restructuring in May 2006 through JV route. JV consists of:
GMR Group, Fraport AG, MAPL, IDF - 74% AAI - 26% Annual Revenue Share to AAI- 45.9% of Gross Revenue
Capacity to be increased to 37 mppa from current 12
mppa by March 2010. Investment- US $ 2.5 billion over 2006-16 for capacity of
50 mppa.
Mumbai Airport Taken up for restructuring in May 2006 through JV route. JV consists of : GVK, ACSA,BSD - 74 % AAI - 26 %
Annual Revenue Share to AAI - 38.7% of Gross Revenue
Capacity to be increased to 27.5 mppa from current 22 mppa by March 2010 Investment- US $ 1.57 billion over 2006-15 for capacity of 37 mppa.
Kolkata and Chennai Airports
Focus now on Kolkata and Chennai airports.
• Kolkata airport to be modernized in Public Sector by the state owned Airports Authority of India– Project span by March 2010– Investment US$ 340 million
• Chennai airport : Modernization under active consideration; all options open.
Initiatives On Airports
Greenfield Airports
Greenfield Airport – Hyderabad
Financial closure on 22nd Aug. 2005
Work likely to be completed by Mar.2008
Consortium - GMR Infrastructure Ltd.
with Malaysian Airport Holding Berhard
(MAHB) 74%
Govt. of Andhra Pradesh + AAI 26%
Estimated Investment US$ 390 million
Greenfield Airport – Bangalore
Financial closure on 23rd June 2005
Work likely to be completed by Apr. 2008
Consortium - Siemens, Germany, Unique Zurich, Switzerland and - L&T India Limited 74%
Karnataka State Industrial Investment Development Corporation (KSIIDC) + AAI 26%
Estimated Investment US$ 428 million
• Kannur (Kerala)
• Mopa (Goa)
• Halwara (Punjab)
• Chakan (Pune,Maharashtra)
• Navi Mumbai (Maharashtra)
New Greenfield Airport Proposals
Navi Mumbai Airport
Mumbai Airport, even on restructuring & modernisation, to saturate by 2013.
Therefore an additional airport planned for Mumbai ( at Navi Mumbai) under PPP mode.
Development in Four Phases.
Total Project Cost : US$ 2.4 Billion
Phase 1 Project cost : US$ 1.0 Billion
Targeted operation by : 2012-13
Design capacity : 40 MPPA
Initiatives On Airports
Regional Airports
Regional (Non-Metro) Airports
AAI has undertaken an ambitious programme of developing select 35 non-metro airports.
IMPORTANT FOR REGIONAL CONNECIVITY AND DEVELOPMENT OF
REGIONAL HUBS.
PLACES OF MAJOR TOURIST ATTRACTION COVERED.
BUSINESS HUBS COVERED.
PROJECT SPAN – NEXT 3 YEARS. WORK ON MANY OF THESE HAS BEGUN.
INVESTMENT REQUIRED- US $ 1.3 Billion.
CITY SIDE DEVELOPMENT (land use plans), through PPP mode Estimated Investment US $ 357Million.
Investment Opportunities
• Indian aviation growing at a spectacular pace.
• Investment opportunities- US $ 110 billion by 2020– New Aircraft US $ 80 billion– Airport Infrastructure US $ 30 billion
• Other areas-
MROs - Steady induction of new aircraft - Potential to become regional Maintenance Hub - Investment of US $ 100 million each already
committed by Boeing and Airbus.
Training - Huge demand for trained manpower - Upgradation of IGRUA. - New Flying Training Institute at Gondia
Investment Opportunities
• Strategy for development : Mixed i.e. – Public Sector, – Public Private Participation, and – Private Sector
• Thus opportunities for all – Airport Developers– MROs– Commercial Lenders– Equity Funds– Multilateral Agencies – Bilateral Donors
Thank You
• 35 Non Metro Airports identified for development are
Ahmedabad, Amritsar, Agatti, Aurangabad, Agartala, Agra, Baroda, Bhopal, Bhubaneshwar, Chandigarh, Coimbatore, Dehradun, Dimapur, Goa (Dabolim), Guwahati, Imphal, Indore,Jaipur, Jammu, Khajuraho,
Lucknow,Madurai, Mangalore,Nagpur,Patna, Portblair, Pune, Rajkot, Ranchi, Raipur, Trichy, Trivandrum, Udaipur, Visakhapatnam Varanasi.