Airport privatisation in India: Investment opportunities in the next phase of development

Abstract

Over the last ten years, air traffic in India has seen unprecedented growth levels. The combination of increased economic growth, the liberalisation of the aviation market and the advent of private airlines and low-fare carriers has changed the face of Indian aviation. To meet infrastructure needs, key airports are being developed through models of public–private partnership. Despite the recent financial crisis and slowdown in passenger and cargo traffic in 2008–09, the general resilience and strong fundamentals of the Indian economy have resulted in traffic picking up again. While the full-service carriers are still struggling, low-fare carriers have made profits and the outlook for the development of airport and aviation infrastructure has started to look stronger. This paper examines the possible implications of the improved outlook for airport and aviation infrastructure development for key stakeholders, including investors, developers, operators and policy makers/regulators.