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WHY AVIATION / AERONAUTICS :

A) Overview of Aviation Industry :
Air Traffic : The Airport Authority of India (AAI) manages a total of 122 Airports in the country, which include 11 International Airports, 94 domestic airports and 28 civil enclaves. Top 5 airports in the country handle 70% of the passenger traffic of which Delhi and Mumbai together alone account for 50%. Passenger and cargo traffic has growth at an average of about 9% over the last 10 years.
Growth : Estimated domestic passenger segment growth is at 12% per annum. Anticipated growth for International passenger segment is 7% while the growth for International Cargo is likely to grow at a healthy rate of 12%.
Privatization : Privatization of International Airports is in offing through Joint Venture route. 100% foreign equity has also been allowed in construction and maintenance of airports with selective approval from Foreign Investment Promotion Board.
Air Movements : Day by day aircraft movements increase under review. The reason for increase in aircraft movements is due to increase of operation of smaller aircraft by airlines and the introduction of new airlines.
Passenger Traffic : International and Domestic passenger traffic also increases accordingly.
Cargo Traffic : International and domestic cargo traffic also increases invariably.

B) Potential For Growth :
According to recent estimates by The International Air Transport Association (IATA), India is likely to be a significant player in the global civil aviation business.

The government is planning to upgrade 45 big and small airports across India. For Greenfield airports, foreign equity up to 100 per cent is allowed through automatic approvals. For upgrading present airports, foreign equity up to 74 per cent is allowed through automatic approvals and 100 per cent through special permission (from FIPB).

The Centre for Asia Pacific Aviation (CAPA) has forecast that domestic traffic will increase by 25 per cent to 30 per cent till 2010 and international traffic will increase by 15 per cent, taking the total market to more than 100 million passengers by 2010. India's civil aviation passenger growth, presently at 20 per cent, is one of the highest in the world, and is expected to surpass countries like China, France and Australia. By 2020, 400 million Indian passengers are likely to be airborne.

By 2020, Indian airports are expected to handle more than 100 million passengers including 60 million domestic passengers and around 3.4 million tonnes of cargo per annum.Domestic air traffic is likely to be more than double and touch 86.1 million passengers by 2010, up from 32.2 million passengers in 2007.

C) Aviation Sector Booming :
Annual air passenger traffic growth rates, which touched dizzy heights of 46 to 49 per cent in the last two years, has now evened out to hover around 22 to 25 per cent, according to Directorate General of Civil Aviation (DGCA) Joint Director Mr. R P Sahi.

Traffic, which was soaring for the last couple of years due to the country's open sky policy and the entry of a number of private airlines, had evened out. He said that despite the decline in growth rate, the aviation sector was still booming overall, with 14 scheduled airlines operating 300 aircrafts along 60 non-scheduled operators in the country.