Indian Aviation Industry Overview

Air Traffic: The airport authority of India (AAI) manages a total of 122 airports in the country, including 11 international airports, 94 domestic airports and 28 civil enclaves. Top 5 airports in the country with 70% of passenger traffic, Delhi and Mumbai together unaccompanied by 50%. Passenger and cargo traffic growth averaging about 9% during the past 10 years.

Height: Domestic passenger segment is growing at 12% per year. Expected growth in international passenger segment was 7%, while growth in international cargo probably will grow up healthy level of 12%.

Privatization: Privatization International Airport in Offingen through joint venture route. Greenfield airports are always in Kochi, Hyderabad and Bangalore with the participation of the private sector. Work at the airport in Bangalore is likely to begin shortly. Some selected non metro airports, most likely, privatized.100% foreign capital was also allowed in the construction and maintenance of airports with selective admission of Foreign Investment Promotion Board.

Airlift: General flight movements, in October 2003 showed an increase of 15.4 percent compared with the movement of aircraft in October 2002. International and domestic flight movements increased by 15.4 per cent in each reporting period. The reason for the increase of flight movements at the increase in operating smaller aircraft and the introduction of new airlines, namely. Air Deccan in the southern region and international airlines (Air Canada, Polar Air Cargo, Qatar Airways (freighter), Turkish Airways, Air Slovakia in the IGI Airport, beginning in October 2003.

Passenger Traffic: International and domestic passenger traffic in October 2003 at 15.4 percent and 6.7 percent in the period from October 2002 resulted in an overall increase of 9.4 percent. Total passenger traffic increased by 9.2 per cent, 7.6 per cent, 8.9 per cent and 17.0 per cent in five international airports, six developing international airports, eight custom airports and 26 domestic airports.

Freight transport: The entire shipment in October 2003 showed a growth of 3.5 per cent, compared with Georgia in October 202nd international and domestic freight traffic increased by 4.3 percent and 2.1 percent in the period.

During October 2003, 5.346 billion air traffic (except for defense and other non-commercial movements), 40,33 lakhs of passengers and 88.59 thousand tons of cargo were together at all airports.