Year End Review 2024 of India's Civil Aviation Sector

Achievements of the Ministry of Civil Aviation

The Bharatiya Vayuyan Adhiniyam 2024, introduced by the Minister of Civil Aviation Mr. Ram Mohan Naidu, was passed by Lok Sabha on 9.08.2024 and by Rajya Sabha on 5.12.2024. The Bill, after receiving assent from the President, the Central Government hereby appoints the 1st day of January 2025 as the date on which the provisions of the said Act, shall come into force. The Bharatiya Vayuyan Adhiniyam, 2024 is a legislative reform aimed at modernising India’s aviation sector by re-enacting the Aircraft Act 1934, in alignment with contemporary needs and global standards. In line with the Prime Minister’s call to remove colonial era influences, this Adhiniyam addresses the need for clarity, efficiency and ease of doing business in the aviation industry. The new legislation will foster indigenous manufacturing under Make in India and Atmanirbhar Bharat initiatives, align with international conventions like the Chicago Convention and ICAO, and streamline regulatory processes, such as simplifying the issuance of licenses. The Adhiniyam removes redundancies and provides provisions for appeals. Ultimately, the Bharatiya Vayuyan Adhiniyam 2024 aims to revolutionise India’s aviation sector, enhancing safety, innovation, growth and global compliance.

Under the chairmanship of Union Minister of Civil Aviation Ram Mohan Naidu, Ministry successfully organised the 2nd APAC-MC on 11 and 12 September 2024 in New Delhi. As a major achievement, Delhi Declaration was proclaimed by Prime Minister of India Mr. Narendra Modi during the conference. The conference was attended by Ministers and high level dignitaries from twenty nine Asia Pacific countries. Further, the conference was also attended by other aviation related International Organisations such as IATA, ACI, etc and representatives from ICAO.

Expansion of airports and terminals

Significant infrastructure development included laying the foundation for new terminals at Varanasi, Agra, Darbhanga, and Bagdogra. The Prime Minister Narendra Modi also inaugurated airports in Sarsawa, Rewa and Ambikapur, strengthening regional connectivity.

 Inauguration of airports in UP

PM Narendra Modi inaugurated new airports at Aligarh, Azamgarh, Chitrakoot, Moradabad and Shravasti, further expanding air connectivity across the state.

Record Passenger Traffic

Domestic Routes: During the year 2024 (January-November), scheduled domestic airlines operated a total number of 1.02 million scheduled flights carrying a total of 146.4 million scheduled passengers as against 0.97 million scheduled flights carrying total of 138.2 million scheduled passengers during the previous year 2023 (January-November). The number of domestic passengers carried by scheduled domestic Indian Carriers has witnessed a growth of 5.9% in the year 2024 as compared to the previous year 2023 during the same period (Jan to Nov). Marking a new record, domestic air passenger traffic crossed 5 lakhs for the first time in a single day on 17 November 2024.

International Routes: During the period January to November 2024 a total of 64.5 million passengers were carried on international routes by scheduled Indian and foreign operators as against 58.0 million in the corresponding period in 2023, thereby witnessing a growth of 11.4%. Out of the 64.5 million passengers, 29.8 million passengers were carried by scheduled Indian carriers while 34.7 million passengers were carried by scheduled foreign carriers during the period January to November 2024.

Setting up of Greenfield Airports

Government of India has so far accorded 'in-principle' approval for setting up of 21 Greenfield Airports across the country namely, Mopa in Goa, Navi Mumbai, Shirdi and Sindhudurg in Maharashtra, Kalaburagi, Vijayapura, Hassan and Shivamogga in Karnataka, Dabra (Gwalior) in Madhya Pradesh, Kushinagar and Noida (Jewar) in Uttar Pradesh, Dholera and Rajkot in Gujarat, Karaikal in Puducherry, Dagadarthi, Bhogapuram and Oravakal (kurnool) in Andhra Pradesh, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala and Itanagar in Arunachal Pradesh. Out of these, 12 Greenfield airports, namely Durgapur, Shirdi, Sindhudurg, Pakyong, Kannur, Kalaburagi, Oravakal (Kurnool), Kushinagar, Itanagar, Mopa, Shivammogga and Rajkot have been operationalised.

Further, development works at two major airport projects i.e. Noida (Jewar) and Navi Mumbai International Airports are at advance stage of completion and these airports are targeted for operationalisation by first quarter of FY 2025-26. Besides, GoI has also granted 'Site Clearance' for construction of 9 Greenfield airports namely Alwar in Rajasthan, Singrauli in Madhya Pradesh, Mandi in Himachal Pradesh, Kottayam in Kerala, Puri in Odisha, Doloo in Assam, Parandur in Tamil Nadu, Kota in Rajashtan and Raichur in Karnataka. Among these, 'Site Clearance' to 4 Greenfield Airport projects viz. Doloo, Parandur, Kota and Raichur has been granted during 2024.

CAPEX on infrastructure development

Under National Infrastructure Pipeline (NIP), CAPEX of more than Rs. 91,000 crore is envisaged for airport infrastructure development during the period FY 2019-20 to FY 2024-25, where the share of AAI is approximately Rs. 25,000 crore and remaining expenditure is to be borne by airport developers under PPP mode. Expenditure of Rs. 82600 crores have been incurred under NIP from FY 2019-20 till November 2024.

RCS-UDAN: 8 Years of regional connectivity

RCS-UDAN celebrated its 8th anniversary, with 619 routes and 88 airports operationalised since the launch of the scheme, exemplifying the government’s commitment to affordable air travel. RCS-UDAN was launched on 21 October 2016 to enable air operations on unserved/underserved routes connecting different regions, promote balanced regional growth and make flying affordable for the masses.

102 New RCS routes commenced in the year 2024 of which 20 new RCS routes commenced in the North Eastern States of the country. 12 Aerodromes were also operationalised which included 4 Heliports.

Expansion of Digi Yatra Services

Minister Ram Mohan Naidu launched Digi Yatra at 9 more airports this year. It has transformed passenger experiences with seamless, contactless travel. Digi Yatra is now operational at 24 airports namely Delhi, Bangalore, Varanasi, Pune, Kolkata, Vijayawada, Hyderabad, Mumbai, Ahmedabad, Jaipur, Guwahati, Lucknow, Cochin, Chennai, Bagdogra, Bhubaneswar, Coimbatore, Dabolim, Indore, MoPA Goa, Patna, Raipur, Ranchi and Vishakhapatnam. Since its launch, 80+ lakh users downloaded the app and 4+ crore journeys have been completed with Digi Yatra facility. Digi Yatra App is available on android as well as iOS platform. Eventually, all the airports will be covered with Digi Yatra in a phased manner.

Guidelines for seaplane operations

The Minister of Civil Aviaiton Ram Mohan Naidu launched Guidelines for Seaplane Operations in India on 22.08.2024. These guidelines prioritise the safety and security of operations and define the responsibilities of all stakeholders, ensuring a seamless and efficient seaplane operation across the nation. The adoption of the Non-Scheduled Operator Permit (NSOP) framework for seaplanes is a significant step forward in the Government’s commitment to enhancing regional connectivity with a focus to allow expeditious commencement of seaplane operations in the country. UDAN Round 5.5 has been launched to invite bids for seaplane operations from more than 50 water-bodies across the country.

MRO sector development

The Government has introduced several policies and regulations to bring India's MRO sector at par with global peers and support growth of MRO industry in India. In a major boost to the domestic MRO industry and to the aviation sector, the Government has announced on 12 July 2024 that a uniform rate of 5% IGST will apply to imports of parts components, testing equipment, tools and tool-kits of aircraft, irrespective of their HSN classification subject to specified conditions. Previously, the varying GST rates of 5%, 12%, 18% and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts. This new policy eliminates these disparities, simplifies the tax structure and fosters growth in the MRO sector. Further, the period for export of goods imported for repairs has been extended from six months to one year. Also, the time-limit for re-import of goods for repairs under warranty has been extended from three to five years.

Pioneering Green Energy Adoption

The Minister of Civil Aviation Ram Mohan Naidu has been driving adoption of conventional sources of energy at airports reducing the carbon footprint of operations. 80 airports have switched over to 100% green energy usage with 12 airports making the switch in 2024. Bengaluru Airport has achieved the highest Carbon Accreditation Level 5 of Airports International Council (ACI), whereas Airports viz. Delhi, Mumbai and Hyderabad have achieved Level 4+ ACI accreditation, becoming carbon neutral.