GAMMON INDIA LIMITED

The Airports Sector in India
Indian air transport is one of the fastest growing markets in the world in both passenger and cargo traffic.
Over the past 20 years, the amounts of domestic and international air traffic at Indian airports have
increased at average rates of 5.40% and 5.70% per annum, respectively. However, for an economy of its
size, use of air travel is extremely low. This is also reflected in the fact that Mumbai and Delhi airports are
ranked only 80 th and 109 th (Ministry of Civil Aviation) in 2002, respectively, in the world instead of being
considered among the world’s largest.
Despite recent growth in air passenger traffic, India continues to have gross under penetration of air services
with an average air travel of 0.014 trips per person per year as compared to an average of 2.02 trips per
person per year in the United States in 2005. This signals the level of potential demand, which may be
generated as the economy grows and air travel becomes more affordable for a larger population, which
otherwise uses road or rail transports.
There are 449 airports and airstrips in India, including 17 international airports, nine custom airports, 79
domestic airports and 26 civil enclaves at defense airfields (excluding Bangalore, Goa and Srinagar).
Indian airports, in the year ended March 31, 2009, handled total passenger traffic of approximately 108
million passengers and approximately 1.69 million tons of cargo. Indian airports registered a 6.90%
depletion in passenger traffic and a 1.00% depletion in cargo handled for the year ended March 31, 2009.
(Source: http://www.airportsindia.org.in/)
Source: http://www.airportsindia.org.in/
In its report, “A Road Map for the Civil Aviation Sector”, India’s Ministry of Aviation acknowledged that
the industry’s development is hampered by outdated infrastructure, inadequate ground handling systems and
night landing facilities, poor passenger amenities and the poor utilization of existing capacity (which is
limited in any event). AAI has taken steps to invite both private and foreign entities to participate in the
process of revitalizing the key existing gateways as well as in building new facilities in cities that are likely
to increase traffic flow in the near future. Additionally, the Government has designated 30 smaller cities
60