Airport Transport System in India

Airport Transport System in India

Civil Aviation in India

India’s Domestic Market Rank

• India is the third-largest domestic market for civil aviation in the world.

Airports in India

• India has 136 commercially managed airports by the Airports Authority of India (AAI).

• 6 airports are under Public-Private Partnerships (PPP) for Operation, Maintenance, and Development.

Global Competitiveness Ranking

• On airport connectivity, India stood first along with 7 others (USA, CHINA, JAPAN, UP, etc) in the Global Competitiveness Report 2019 of the World Economic Forum.

[Source: ES2019-20]

Growth in Domestic Traffic

• According to Economic Survey 2021-22, India's domestic traffic more than doubled from around 61 million in FY 2013-14 to around 137 million in FY 2019-20.

• This reflects a growth of over 14% per annum.

Air Transport in India

Historical Background

• Airways in India started in 1911.

• Indian National Airways Company started in 1933.

Nationalisation of Airways

• All airway companies were nationalized in 1953.

• They were placed under two corporations: Indian Airlines and Air India.

National Civil Aviation Policy (NACP), 2016

• An integrated civil aviation policy, "National Civil Aviation Policy (NACP), 2016," was notified in June 2016.

• The Regional Connectivity Scheme (RCS)-UDAN was envisaged in NACP with the twin objectives of promoting balanced regional growth and making flying affordable for the masses.

• An integrated civil aviation policy, 'National Civil Aviation Policy (NACP), 2016', was notified in June 2016. 

• The Regional Connectivity Scheme (RCS)-UDAN was envisaged in NACP with the twin objectives of promoting balanced regional growth and making flying affordable for the masses.

Capacity of Indian Airports

• The present capacity of Indian Airports is 282 MPPA (Million Passengers Per Annum).

Air India and NACIL

• Consequent upon the merger of the erstwhile Air India Ltd. and Indian Airlines, a new company, viz., National Aviation Company of India Ltd. (NACIL), was incorporated, which is known as "Air India", and the appointed date of merger is 1 April 2007.

• The "Maharaja" is retained as its mascot.

TATA Regains Air India

Acquisition Announcement

• Talace Pvt. Ltd., a unit of Tata Sons, the holding company for the conglomerate, will acquire 100% of Air India.

• The transaction is expected to close by the end of December 2021.

Historical Background

• It is noteworthy that the government had (in 1953) taken control of the airline from the Tata Group, which founded the carrier as Tata Airlines in 1932.

Financial Details of the Bid

• The Mumbai-based conglomerate placed a winning bid of 18,000 crore.

  • Of this:

    • 2,700 crore will be paid in cash.

    • The remaining 15,300 crore will be absorbed from the over ₹60,000 crore debt the airline had as of August 31, 2021.

Air India’s Debt Structure

• Air India and its affiliate companies had a combined debt of 61,562 crore as of August 31.

• Of this:

  • The Tatas will take over a debt of 15,300 crore.

  • The remaining 46,262 crore debt will go to Air India Assets Holding Ltd. (AIAHL), a special purpose vehicle.

Government’s Role in Debt Retirement

• Around 14,000 crore of this debt will be retired by the government by monetising some of its assets, such as real estate.

• The remaining will be infused by the exchequer.

Courtesy: The IE, Oct 09, 2021

Air India's New Logo

• On 10 August 2023 the Air India's chairman, N Chandrasekaran, unveiled its new brand identity and aircraft livery as part of its broader exercise.

• The company's new logo and livery features golden, red, and aubergine colours, with the latter being reminiscent of Tata's other airliner, Vistara.

Air India Ltd.

Air India Ltd. (with registered office in New Delhi) is a passenger-oriented airline operating to:

• 72 online domestic stations (including Alliance Air)

• 42 international destinations in 28 countries

It is in the transport services sector under the administrative control of the Ministry of Civil Aviation, Government of India.

Aviation Education Institutions

Rajiv Gandhi National Aviation University (RGNAU)

• Rajiv Gandhi National Aviation University (RGNAU), a Central University under the administrative control of the Ministry of Civil Aviation, has been established by the Rajiv Gandhi National Aviation University Act 2013.

• It is situated at Fursatganj, Raebareli, in the Amethi district of Uttar Pradesh.

Indira Gandhi Rashtriya Udan Akademi (IGRUA)

• Indira Gandhi Rashtriya Udan Akademi (IGRUA) was set up at Fursatganj, Raebareli (U.P.).

FDI in Aviation

• Govt. of India has raised the FDI limit from 49% to 100% in scheduled and non-scheduled air transport services.

[Source: INDIA 2021]

UDAN Scheme (RCS)

UDAN is a regional airport development program of the Government of India and part of the Regional Connectivity Scheme (RCS) for upgrading underserved air routes.

Till launching of UDAN in 2016, India had 74 airports having scheduled operations.

Within 4 years under UDAN, four rounds of bidding under RCS-UDAN have taken place and:

• 153 RCS airports (including 12 water aerodromes & 36 Helipads) have been identified

• 948 valid awarded routes have been allotted

• 389 RCS routes connecting 62 unserved and underserved airports (including 6 heliports & 02 water aerodromes) have been operationalised so far
  [Source: Economic Survey 2021-22]

GAGAN (GPS Aided Geo Augmented Navigation)

GPS Aided Geo Augmented Navigation (GAGAN) system is a prestigious satellite-based augmentation system of India, jointly developed by:

• Airports Authority of India (AAI)

• Indian Space Research Organisation (ISRO)

For enhancing Air Navigation Services across the country. 

It has been fully operational since May 2015 and is available on a 24x7 basis.

[Source: INDIA 2023]

Major International Airports of India

AAI's First-green field airport in the country, the first airport of Sikkim (60 km off the Indo-China border), is the 100th functional airport of India.
[Source: AAI]

Final Thoughts

India's airport transport sector has entered a new era of growth and modernization. Reforms like UDAN have dramatically expanded regional connectivity, making air travel affordable and accessible to the masses. At the same time, GAGAN has brought in world-class navigation systems, improving air safety and operational efficiency.

The privatization of airports, increased FDI limits, and the return of Air India to the Tata Group further demonstrate India’s commitment to transforming civil aviation. With over 130 functional airports and hundreds of new air routes being developed, the country is strengthening its position as a global aviation hub.

These advancements are not just about infrastructure—they're about empowering citizens, bridging regional gaps, and creating a future-ready transport network. As India continues to invest in aviation, it's clear that the skies are becoming more inclusive, efficient, and connected than ever before.