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Strategic Opportunities in the Indian Airport Infrastructure MarketPublished by: Frost & Sullivan Published: May. 9, 2009 - 83 Pages Table of Contents
AbstractThis Frost & Sullivan research service titled Strategic Opportunities in the Indian Airport Infrastructure Market provides an overview of the various aspects of developing Indian Airport infrastructure, opportunities, drivers and restraints, government view point and recommendations. The study examines issues surrounding airport development and modernization in India.Market Overview Indian Airport Infrastructure Offers a Long Term Reward Avenue for Private Participants Airport infrastructure development in India has thrived in the wake of emerging business places, increased scope for connectivity, and new operating models of airlines, government initiatives, and the dynamic growth of tourism. Airport infrastructure is witnessing improvisation and expansion on a massive scale, with the Government avidly supporting private participants in all the Greenfield projects. Trends indicate that the long-term prospects for both the private participants and the country are attractive. "The investment in Indian airport infrastructure market, especially in the Greenfield projects will almost increase two fold in the next 5-7 years addressing the need and financial gaps," notes the analyst of this research service. "The planned investment in airport infrastructure is estimated to be INR 400,000 million." There are at least seven Greenfield airports in the country that are poised to attract traffic in terms of both domestic and international passengers and aircraft movement. The primary challenges that face the market are finance and the identification of key geographical areas. Funding for the airport development projects encompasses equity from loans, government grants, investors, the Airport Authority of India (AAI) and consortium partners, all of which will be invested in the project in a phased manner to accommodate planned expansions. Funding can be purely private or public private; however, Greenfield projects have remained public private alliances. "The Committee on Infrastructure expects the total investment towards airport development during the next 5 years to be INR 400,000 million, of which close to INR 310,000 million is expected to come through public private partnerships (PPPs)," explains the analyst. "International investors and airport companies have evinced interest in the past, during the bidding stages of the Greenfield airports, and many such companies are consortium partners in the current airport development projects." Land acquisition can also contribute to delays and thereby extend the gestation period of projects. The gap between developmental needs and funding is wide, posing limitations on the ability of the government to satisfy growth. Long-term sustainability of the airports in terms of funding is an issue for the government. Factors including the lack of indigenous technical and administrative expertise are perceived as the prime reason for poor planning and management. Nonetheless, the Government continues to encourage private participants by providing assistance in terms of tax holidays and land for construction. Planning committees and steering boards have been set up to expedite the progression of projects and policies connected with the development of airport infrastructure. Observation of air traffic, cargo movement and passenger movement across the main airports in the country suggests that the development of alternative airports will help ease congestion at the existing airports, and increase connectivity. During the past five years, the rates of growth for air traffic, cargo and passenger movement have been more than 15 percent, which bodes well for the market. Going ahead, though the current scenario in aviation is slightly on the lower side, one can expect to see some positives growth trends provided one sees a horizon of 5-7 years from now. Get Full Details About This Report >> |
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