Union Government on 10 March 2014 announced to build 200 low cost airports in the next 20 years. The move is aimed at expanding connectivity to Tier-II and Tier-III cities. The development of low-frills airports will significantly reduce the cost of operations.
The announcement is expected to trigger a sharp increase in the aircraft fleet and the MRO (maintenance, repair and overhaul) business. India is expected to add 370 aircraft worth 27 billion US dollar by 2017.
Union Government also planned to build fifteen low-cost airports till 2020 under the Greenfield Airport Policy, 2008. Airports Authority of India planned to invest 1500 crore rupees in the development of non metro airports during the 12th Plan.
Union Government also planned to invest over 120 billion US dollar in the development of airport infrastructure , improvement in connecting infrastructure , development of world class air navigation services infrastructure and other related activities to improve the air connectivity.
The non-metro airports presently account for only about 30 per cent of the total air traffic. It is expected to rise to 45 per cent in the next few years. This growth will result in increase in the number of aircraft operating in India to 1000 from the present 400 by 2020.
India is one of the fastest growing aviation market in the world. Currently, Indian aviation market ranks ninth but it is expected to become the third largest after US and China by 2020.
Indian airport system is poised to handle 336 million domestic and 85 million international passengers by 2020, from the current level of 121 million domestic and 41 million international passengers.
Who: Union Government
When: 10 March 2014