Tag Archives: CAPA India

Paramprit Singh Bakshi, Vice-President, CAPA India, said, “Amid strong demand and “unprecedented investment in aircraft orders, product, brand, technology, the Indian airport industry’s profit before tax (PBT) is expected to grow by 35 per cent year-on-year (Y-o-Y) to Rs 10,370 crore in the financial year 2024-25 (FY25)”. The industry, in FY24, is estimated to have had a PBT of Rs 7,680 crore, which was 134.1 per cent more Y-o-Y as the airport sector recovered after Covid-19.

Domestic airfares in India have surged up to 40% in key routes due to higher traffic and capacity constraints in the last six quarters. The fares on top 20 domestic routes had not moved significantly during the last two decades, says CAPA India. India is now one of the world’s fastest-growing civil aviation markets, with an average of 4.5 lakh passengers daily, it stated. 

As per CAPA India, almost 250 narrowbody aircraft are likely to be deployed on routes up to 5 to 7 hours range from India. This would be 2.5 times the current deployment of aircraft. This expansion will create significant network deployment and strategic challenges for airlines to be able to find sufficient markets for such capacity.

CAPA India has said that India should urgently introduce mechanisms to institutionalise consumer protection, providing full refunds in the event of airline closure, along the lines of @ATOLprotected in the UK, which is run by the @UK_CAA). CAPA India has been recommending this since 2011: CAPA India

CAPA India has said that the aviation policy should plan for airport capacity that will last for a generation and beyond, and which is developed ahead of demand. “Delhi and Mumbai need to start planning for 3rd airports, for which land acquisition should commence immediately,” it was stated at its 35th Research Briefing.

The Indian aviation sector would attract more than $275 bn in investment over the next 20 years, revealed CAPA India. Indian aviation would attract $175 bn in funding for fleets and $70–80 bn in financing for airports, it was revealed at the summit.

At the CAPA India webinar, India’s financial outlook FY22-23 revealed that domestic traffic may reach FY19-20 levels this year, but international will take until FY23-24. There is a visible softening of demand due to fuel prices and economic conditions. 2022 is predicted to be another loss-making year, losses will be trimmed, but will remain substantial.

CAPA India reveals that among PPP airports, Hyderabad is expected to recover closest to pre-COVID traffic at 31.3 per cent, while Mumbai will be the furthest behind at 52.3 per cent. This is according to its updated outlook for airports for FY2022. And though Mumbai’s recovery underperforms other metro airports, it may be possible for the airport to accelerate during the year and achieve higher volumes.

CAPA India recommends the development of 100 new low-cost airports by re-targeting of the planned $4-5bn of capital and other assets earmarked for investment in regional aviation over next 10 years.

Only 60% of the pre-COVID traffic is allowed to enter the country from a border control perspective, revealed a recent CAPA India report. The report states, “Although foreign business travellers and OCI holders are once again permitted to enter the country, India remains closed to leisure visitors, VFR travellers (unless they are NRIs or hold OCIs) and medical tourists. Only 60% of the pre-COVID traffic is allowed to enter the country from a border control perspective. Of which the majority is expected to defer travel given the risks and inconvenience associated with international travel at present.”