Flying high

Written by Saikat Neogi | Updated: Mar 19 2014, 08:49am hrs
With India poised to be one of the top three aviation markets by 2020, investment in airport infrastructure will be critical. Operational airports in the country handled over 159 million passengers in 2012-13. The traffic is expected to increase three times in the next decade. Between 2013 and 2023, even cargo throughput is likely to grow three times. To cater to the growing demand, Indian carriers plan to more than double their fleet size, from 378 aircraft now to 800 by 2020.

In the last six years, around $10 billion has been invested in airport modernisation. A report by Ficci-KPMG says that between 2012 and 2017 about $14 billion more needs to be invested in airport infrastructure alone to cater to the rising demand. Overall, in the same period, around $50 billion will have be to invested in the civil aviation industry to make it globally competitive. Private operators would contribute more than three-fourths of the investment in the next five years, which includes investment in cargo handling and other non-aero infrastructure.