At the beginning of 2020, the Indian aviation sector was at an exciting stage. Six of the major airports had been privatized, and the Ministry of aviation had already identified six more. However, the aviation sector faced the most challenging times from Q2 onwards, with almost 80% of the flights grounded worldwide. As flying restrictions are reduced, we are anticipating more action in the sector.
In the Union budget 2021-22, India's government indicated monetization as a key revenue generator in the coming years. As the aviation sector is gradually opening up in India, we foresee several monetization opportunities waiting to be explored. Many airports have surplus land parcels in airport estate and can cater to the real estate demand generated from the travelers and the respective city.
In this report, we have explained the concept of privatization of airports, the importance of non-aero revenue in airport operations, real estate best-use of landside developments, and, more importantly, the Indian aviation sector's growth potential. This report addresses some essential aspects that will help various market players interested in the industry – in India and globally.