Thursday 26 / December / 2024
New Delhi: India’s aviation sector is poised for a major transformation as the country’s airports gear up to handle the increasing number of passengers over the next few years.
With rapid urbanisation, a growing middle class, and an expanding economy, air travel in India has surged dramatically.
To meet the demand, the Airports Authority of India (AAI) and private operators are planning to invest a staggering INR 60,000 crore ( 70.6 billion USD) by FY27 in expanding and modernising airport infrastructure across the country.
This substantial investment is aimed at enhancing passenger experience, boosting airport capacity, and improving overall efficiency in the face of rising air travel demand.
India’s aviation sector has been experiencing robust growth, with air travel demand growing consistently.
The Indian government’s ambitious plan of connecting smaller cities under the Ude Desh ka Aam Naagrik (meaning common people in the country fly or abbreviated as UDAN) scheme has significantly contributed to this boom.
The number of domestic and international passengers has been on an upward trajectory, with a projection that the sector will continue to expand at a rate of 10-12 percent annually.
Before the pandemic, India was the world’s third-largest aviation market by the number of domestic air passengers.
Despite the temporary setbacks caused by Covid-19, the aviation industry is quickly rebounding, with forecasts indicating that air travel will surpass pre-pandemic levels in the coming years.
According to industry experts, the number of air passengers in India is expected to reach 500 million annually by 2035, creating a need for airports to expand their infrastructure significantly.
This rising demand has created a pressing need for modernization and expansion of airport facilities.
At present, many airports are struggling to keep up with the growing number of passengers, leading to overcrowding, longer wait times, and a suboptimal passenger experience.
To address these challenges, Indian airports must enhance their capacity and ensure that they can handle the projected increase in air traffic.
The INR 60,000 crore (70.6 billion USD) investment will also focus on improving connectivity and ensuring that airport operations are more streamlined and passenger-friendly.
Many airports in India, especially in major cities like Delhi, Mumbai, and Bengaluru are operating beyond their intended capacity. As a result, airport authorities are focusing on building new terminals or expanding existing ones to accommodate the increasing number of passengers.
For example, the Indira Gandhi International Airport in Delhi has been working on expanding its terminal infrastructure to handle an additional 10 million passengers annually.
Similarly, Mumbai’s Chhatrapati Shivaji Maharaj International Airport is undergoing an extensive redevelopment, which will increase its passenger handling capacity to 90 million per year by 2029.
Smaller regional airports are also part of the growth story. The government’s UDAN scheme is aimed at increasing connectivity to underserved regions, which will require substantial investment in smaller airports.
These airports will need upgraded terminals, new passenger amenities, and improved ground handling facilities to handle the anticipated rise in traffic.
In addition to terminal upgrades, investments are being made in airside infrastructure, including runway expansion and modernised apron areas.
For instance, several airports are extending runways to accommodate larger aircraft and facilitate international flights.
Moreover, airport authorities are working on building additional taxiways and expanding apron space to ensure smoother aircraft movement, thereby minimizing delays and improving operational efficiency.
As air travel becomes more competitive, airport authorities are increasingly focusing on improving passenger experience.
This includes the modernisation of lounges, restrooms, food courts, and other amenities.
Additionally, there is an emphasis on the implementation of technology, such as biometric boarding, automated check-in kiosks, and contactless services, to streamline operations and reduce waiting times.
One of the key areas of focus is the integration of Artificial Intelligence (AI) and Internet of Things (IoT) solutions to enhance operational efficiency and offer passengers a seamless experience.
For example, AI can be used for predictive maintenance, baggage handling, and even crowd management.
Furthermore, the use of biometrics can drastically reduce check-in and security screening times, helping to ease congestion at busy airports.
With increasing environmental concerns, airports are also focusing on sustainable development.
This includes the installation of solar power systems, rainwater harvesting facilities, and waste management programs.
Airports are working to obtain Green Building certifications (such as LEED) for their new constructions to minimize their environmental footprint.
Additionally, there is a push to make airports carbon-neutral, with investments in electric vehicles and alternative energy sources.
A significant portion of the investment will come from private players, especially in the form of public-private partnerships (PPPs).
Over the years, India has seen an increase in private-sector involvement in airport development.
Private operators are responsible for upgrading and maintaining many major airports, which has helped accelerate development and ensure world-class services.
The government has also been encouraging private investment by offering a conducive regulatory environment.
Under the PPP model, private players are incentivized with long-term lease agreements, which allow them to recoup their investments over time.
This model has already proven successful, with several airports, such as those in Delhi, Mumbai, and Bengaluru, seeing significant improvements under private management.
The planned investments in airport infrastructure will not only enhance passenger experience but also create significant economic benefits.
The expansion of airports will create thousands of jobs, both directly and indirectly, across various sectors such as construction, hospitality, aviation, and retail.
These projects are expected to generate employment opportunities for skilled workers, engineers, architects, and other professionals.
Additionally, the improved connectivity and increased passenger capacity will boost tourism, trade, and business travel, further driving economic growth.
As airports become more efficient, India’s position as a global aviation hub will be strengthened, opening up new opportunities for international airlines and cargo operators.
The planned INR 60,000 crore (70.6 billion USD) investment in India’s airports by FY27 represents a significant step toward preparing the aviation sector for the future.
With increasing air travel demand, improving infrastructure and operational efficiency will be key to maintaining a world-class travel experience.
By addressing challenges, leveraging private sector participation, and embracing technology and sustainability, India’s airports are set to become some of the most advanced in the world, supporting the country’s growth as a global aviation leader.
