Tag Archives: CAPA

Indian aviation to impact GDP by 9% in 2040

CAPA’s report titled, ‘Indian Civil Aviation—The USD250 billion Investment Opportunity’, stated that the investments and economic impact growth of Civil Aviation is estimated to continue to outperform GDP growth through 2040. The industry’s economic impact is estimated to have increased from less than 1 per cent of GDP in 2003 to almost 7 per cent of GDP in 2018. It is projected to increase to almost 9 per cent of GDP, or USD1.1 trillion by 2040. The report states that civil aviation has a multiplier effect on the economy through direct, indirect, induced impact. The comprehensive scale and potential of the industry is yet to be covered in totality which prompted.

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More than 70% of Indian aircraft deliveries will be on lease

According to FICCI’s recent report titled ‘Opportunities and Financing  Outlook for Aviation Sector’, there will be a huge number of aircraft deliveries in India in the next few years. The report quoted a CAPA study, which estimated that out of 400 aircraft deliveries by FY22 to Indian carriers, 70-80 per cent of them will be either on direct lease or sale and leaseback transactions. To fulfil growing demand, the Government has envisaged huge capex of around US$ 15.5 billion towards development of Greenfield airports, expansion of Brownfield airports, fleet addition & maintenance by Indian Carriers and strengthening ancillary services like skill development, MRO, Cargo handling, amongst others in the value chain. This development plan by airports and airlines requires strong support from Banks, Lessors, Private Equity Firms and other Financial Institutions to cater their funding requirement.

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With 1123 aircraft on order and 620 in use, India has the highest fleet ratio: CAPA

Amongst the 10 largest fleets in the world by country, India has the highest ratio of aircraft on order to aircraft in-service, according to a latest report by CAPA India.  In India, for example, the propensity to fly is 0.1 trips per capita today but by 2037 will rise to 0.4, or roughly four times greater. A survey questioned 20,000 people from 18 countries and found that 56 per cent of the people surveyed coming from emerging countries saw themselves first and foremost as global citizens. In India, this figure was 67 per cent. The BBC suggests this is partly because “…the world as a whole is becoming more prosperous and air travel is becoming more affordable to the rising middle classes.”

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Europe-India airline seat numbers grew by 12.9 per cent in 2018

India is only the ninth largest country market outside Europe for international airline seats from Europe in 2018, reports a study by CAPA – Centre for Aviation. However, if North Africa and the Middle East are excluded, India is Europe’s number four long haul market, behind only the US, China and Canada. Among these leading long haul markets, Europe-India seat numbers grew fastest in 2018 versus 2017, with an increase of 12.9 per cent compared with 6.7% for the US, 10.9% for China and 7.3% for Canada. The annual seat capacity from Europe to India has enjoyed strong growth in each of the past two years, increasing by 9.4% in 2017 and 12.9% in 2018. The total number of seats (one way) in this market reached 5.0 million in 2018 (compared with 45 million for Europe-US) – a 30% increase from the low point of 3.8 million in 2013.

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CAPA India Aviation Summit discusses opportunities and challenges of Indian aviation market

CAPA India Aviation Summit, underway in Delhi, saw in presence stalwarts of the aviation industry, including airline heads, airport representatives and stakeholders from around the world. Peter Harbison, Executive Chairman, CAPA – Centre for Aviation, welcomed the delegates and said, “The Indian aviation market has a huge potential and is one of the fastest growing aviation markets in the world. However, there are a few challenges which need to be taken care of. We hope the summit puts across facts and figures that the industry can use for its benefit. We saw a good attendance from major Indian aviation players at the summit and we hope the brainstorming on issues and trends will help the industry at large.”  

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Leased aircraft in India account for 81 per cent: CAPA

About 81 per cent of commercial aircraft in India are leased, compared with 53 per cent globally, according to a recent report by Centre for Asia Pacific Aviation (CAPA) titled ‘Aircraft leasing in India: Opportunity knocks for an Indian lessor’. Leased aircraft take a high share of all operators’ fleets in India. There are 652 commercial aircraft with operators in India at 17-Oct-2018 (including 34 in storage), according to the CAPA Fleet Database. Of these, 531 aircraft are leased, which is 81% of the total. This compares with a leased aircraft share of 52% in Asia overall and 53% globally. Indian airlines’ leasing dependency reflects their relative youth and/or financial fragility. By comparison with other parts of the world, Indian operators rely much more heavily on leased aircraft. In Asia as a whole, leased aircraft account for 52% of all aircraft in service and in storage. Globally, the share is 53%.

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Indian airlines to induct 124-130 aircraft in FY 2018-19

India’s airlines are expected to induct an unprecedented 124-130 aircraft in FY2018/2019, with IndiGo accounting for close to half of this number, according to CAPA estimates on South Asia Aviation Outlook 2018. All Indian LCCs, except AirAsia India, are profitable, and are expected to report a combined profit of USD450 million to USD500 million. In contrast, FSCs are projected to lose USD825 million to USD850 million, although most of this is accounted for by Air India. Vistara is also loss making, while Jet Airways will either report a modest profit or be closer to break even. In 2018, Jet Airways is expected to place an additional order for 75 narrowbodies and to make a decision on its wide body plans, including the 10 787s on order that it has repeatedly deferred. Vistara will likely order 50 narrowbodies, together with a modest initial order for less than 10 widebodies, which may increase later. IndiGo and SpiceJet could place orders to support international expansion, including widebodies, and we do not rule out the possibility of a turboprop order by GoAir. Air India’s fleet plans are currently on hold pending its proposed privatisation.

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Rashmi Verma highlights 3-pronged strategy at PATA India’s Tourism PowerHouse

Highlighting areas where the Ministry of Tourism will spend more on promotional activities, Rashmi Verma, Secretary, Tourism and Chairman, PATA India Chapter, spoke of the Ministry’s three-pronged strategy at PATA India’s first-ever Tourism PowerHouse held at The Park, New Delhi. “We have a three-pronged strategy for increasing inflow to the country. First, we have G2G interactions; 16 MOUs have been signed in this regard. The second is promoting through B2B interactions, where we have employed a number of methods. We have been participating in all major world tourism marts that give us an excellent opportunity. Apart from that, we have roadshows in which we lead a delegation of the industry and give a platform to them for further networking. This year, we’re taking things a step forward and organising India Travel Mart in September, which is likely to get 250 buyers from around the world. The third part of the strategy is more B2C interactions. How we reach out to consumers is the third aspect of our strategy,” she elaborated.

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IndiGo expected to get aggressive in 2018-19

Sharing CAPA’s forecast for 2018-19 during the Annual CAPA India Aviation Summit 2018 held in Mumbai,  Kapil Kaul, CEO & Director—South Asia, CAPA revealed some key expectations from IndiGo. He said, “IndiGo’s long-haul expansion will be aggressive and akin to a full service carrier. It will dominate the low cost carrier market which may cause some sort of friction between airlines. IndiGo may also build cross-border joint ventures but it depends on what happens with its plans for Air India, since IndiGo is one of the six possible bidders for the national carrier. IndiGo may also look at franchise as part of its cross-border plans.” Kaul added that while there might be four Indian carriers to bid for investing in Air India, there might also be two non-aviation entities and huge corporates.

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CAPA India Summit to be held on Jan 30-31, 2018 in Mumbai

Centre for Asia Pacific Aviation (CAPA) India has announced the dates for its annual meeting of aviation industry leaders with an interest in India. Now in its 14th year, the CAPA India Summit will be on January 30-31, 2018, in Mumbai. This year CAPA has added a third day dedicated to airports and airspace opportunities. Titled CAPA India Airport & Airspace Summit, this will be held on 1 February, 2018.  Part of the agenda is announcement of a series of strategic research reports by CAPA, including its annual outlook for Indian aviation in 2018-19. The association expects participation from every airline and airport operator in the country and an audience of close to 250 critical decision-makers from airlines, airports, investors and financiers, manufacturers and lessors, suppliers, travel companies and tourism boards.  

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