India sees a new wave of private investment in airport development as nation sees growing service capacity crunch
MUMBAI, India - Airports Council International (ACI) World today said the Indian government’s move to pursue further private investment in airport development will better enable the country to respond to the growing demand for air services.
The key context for discussion at the Global Aviation Summit in Mumbai – organized by the Ministry of Civil Aviation, the Government of India, and with the support of ACI World – was that the global demand for air services continues to grow rapidly.
According to ACI World Airport Traffic Forecasts 2018-2040, India is expected to be the second fastest growing country with more than 50 million passengers per annum from 2017-2040 with 6.8% growth.
“In order for India cope with surging demand in air transport, a clear plan for building critical aviation infrastructure is required,” says Angela Gittens, Director General, ACI World. “With that in mind, it is good to see that the Indian government has moved to undertake a second phase of privatization."
She continued, “Existing airport infrastructure in the country, and in many mature markets worldwide, will not be able to handle the expected growth so substantial investment is required, soon, to allow the aviation industry to meet growing demand. ACI’s evidence-based Policy Brief on creating fertile grounds for private investment confirms that airport privatization has proven to be an important generator of value for the passenger in terms of providing for new and improved infrastructure.”
ACI World also said that private investment was not only an important tool for infrastructure development, it has also proven to provide an increase in the level of service, customer experience, and passenger satisfaction.
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