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.