1. Discover India !
Presentation by Suresh Nair
General Manager-India, Sri lanka, Nepal
& Bangladesh-Air Asia Berhad
Aviation Outlook Asia 2014
2. Market opportunities and challenges for
route expansion to India
• Assessing opportunities and
challenges for airlines to plan
route expansion to India
• With the highly price sensitive
market, how to strategize for
profitability?
• What are the potential
destinations in India to tap on
for growth in decades ahead
3.
4. And yet…
In 2013 more than One Million Indian
tourists travelled to Thailand alone. Half
a Million to Malaysia and the same
number to Singapore
India has 52 cities with a population of
more than 1 million. 18 of these cities
have international airports
5. 300 Million middle class and upper
middle class Indians have the
capability to travel abroad
15 Million Indians travel everyday
on Indian Railways in India
6. Airline traffic in India is expected to almost triple
over the next decade
Domestic
Airline
Pax
Int’nation
al
Airline
Pax
Total
Airline
Pax
Growth
Multiple
Absolute
Growth
2002/03 14m 15m 29m
2012/13 58m 43m 101m 3.5x 72 m
2022/23# 178m 116m# 294m 2.9x 193m
*CAPA Forecast
# International forecast assumes current lifting of 5 year/20 aircraft rule . CAPA
forecast for International Traffic for FY 15 is closer to 10%.
Indian Outbound Departures Foreign Visitor
Arrivals
2012 15.0 m 6.7 m
2017* 24.4 m 11.4 m
2022* 40.4 m 15.9 m
CAPA forecasts domestic passenger numbers could grow to 900 million per annum by
2040, 15x current levels, and the domestic fleet alone could exceed 3000 aircraft. This
may appear to be a fantasy from where we sit now, but it is possible and achievable
should we choose to work towards it.
Note – these projections are unconstrained and assume that capacity and supply-side
issues (e.g. airport infrastructure, availability of skilled resources etc.) will be available
to meet demand.
7. Long Term Growth Potential is
Massive
Despite this rapid growth, the market is far from saturation. India ranks 6th in the world
for domestic seats, and 19th for international, but on a seats per capita basis it remains
very low, even relative to other emerging markets.
Source: CAPA Research, Innovata
0.04
0.09
0.46
0.67
0.71
1.00
1.09
1.34
1.62
1.80
1.95
2.15
2.76
3.40
3.74
4.35
7.02
11.01
13.31
21.30
0.00 5.00 10.00 15.00 20.00 25.00
India
China
Russian Federation
Japan
United States
Turkey
Thailand
South Korea
Canada
Malaysia
Italy
France
Germany
Spain and Canary Islands
United Kingdom
Netherlands
Switzerland
Hong Kong
Singapore
United Arab Emirates
0.07
0.30
0.34
0.36
0.38
0.41
0.42
0.43
0.43
0.49
0.59
0.64
0.65
0.81
1.04
1.18
1.57
2.59
3.50
5.24
- 1.00 2.00 3.00 4.00 5.00 6.00
India
Philippines
China
Mexico
Russian Federation
Indonesia
United Kingdom
Germany
Thailand
France
Italy
Turkey
Brazil
Spain and Canary Islands
Malaysia
Japan
Canada
United States
Australia
Norway
Ranking by International Seats per capita
of 20 largest markets
Ranking by Domestic Seats per capita
of 20 largest markets
8. Why the time is ripe…
Penetration of aviation is lowest, at 0.04 for
international seats per capita for 20 largest
markets (source CAPA)
New Government policies like “Make in India”
announced by the Prime Minister recently and
tourism initiatives is expected to increase
international air travel into India and out of India
The Visa on Arrival facility being offered to more
and more nationalities including nationals of
Singapore, Vietnam, Cambodia etc..will boost
inbound tourism into India
And above all…
9. ASEAN Open Skies
18 Non Metro Airports which are also tourist centers in
India including Kochi , Ahmedabad , Trivandrum , and
Bodhgaya have been declared as open sky from ASEAN
countries
These airports plus another 17 more have been
upgraded by the Airport Authority of India to state-of-
the-art status.
Extension of this policy to cover all countries would
greatly boost tourist potential of India and enhance
opportunities for airlines to bring in business and leisure
passengers
Some Airlines from ASEAN has made good use of this
policy which benefited airports including Trichy, Kochi,
Ahmedabad , Visakhapatnam and Trivandrum
11. Inbound Potential
Incredible India ! TajMahal, Himalayas, Kerala,
Rajasthan, Goa and the list goes on….
The 25 million Indian diaspora- People of
Indian origin living all over the world including
Singapore, Malaysia, Hong Kong and Fiji form
a huge market for traffic into India
Buddhist circuit- India is the home to 3 of the
4 holiest Buddhist shrines including Bodhgaya
where Lord Buddha got enlightenment
12.
13. Route Expansion Opportunities
The Top Non Metro cities in India which has excellent
growth potential are:-
Pune Ahmedabad
Kochi Chandigarh
Bhubaneshwar Indore
Surat Jaipur
Nashik Rajkot
