India to need $120 bn for aircraft, aviation infra by 2020

MUMBAI: India would require USD 120-billion for aircraft acquisition and building aviation infrastructure to meet domestic passenger traffic, expected to touch 240-260 million per annum by 2020.

The airport sector alone would require a total of USD 20-billion investment over the next decade, in addition to the USD 10-billion already committed in the last 5-years, according to a White Paper on the aviation industry.

"By 2020, domestic traffic will reach 160-180-million passengers per annum and international traffic will exceed 80-million," a White Paper on Information Technology in Indian Aviation, presented jointly by the Centre for Asia Pacific and SITA, said.

According to the paper, this investment would be required for aircraft, airport development and ancillary services such as ground handling, ATC, MRO, catering and training.

Major aircraft manufacturers, Boeing and Airbus, have predict that India's aircraft fleet-size is expected to reach by over 1,000 by 2028 from the present 380 planes.

The document predicts that in addition to upgrades, greenfield second airports will likely be developed at various metro and non-metro cities. The airports system may be handling over 400-million passengers per annum by 2020, it said.

On the role of information technology (IT) in aviation going forward, the White Paper predicts that in the coming years, five new technologies will be making the journey simpler and smoother for Indian travellers.

"The five technologies, mobile devices, Web 2.0, Near Field Communications, RFID and biometrics, will fulfil the needs and expectations of the Indian travellers," it said. Some of these technologies are already starting to make an impact, the paper said.

"IT is rapidly becoming a platform to generate new revenues beyond just cost-savings. This represents a major paradigm shift from the traditional role and definition of IT," the CAPA-SITA White Paper observed.