Surge in Capex for Small Private Airports Amid Terminal Utilization Spike
Small private airports are set to see a 50-60% increase in capital expenditure over the next three years, driven by a significant rise in terminal utilization. Large airports, however, will experience a decline as their capacity expansions are nearly complete. Overall capex is expected to decrease slightly.
- Country:
- India
Capital expenditure for small private airports in India is projected to rise by 50-60% annually over the next three years, propelled by significant terminal utilization gains, according to a report by Crisil Ratings. This uptick is in response to burgeoning travel demands and moderate capacity on the ground.
Conversely, large private airports will witness a reduction in capex as they approach the completion of vast capacity expansions. Despite this, the total capex for private airports is anticipated to decrease by approximately 10-15%, stabilizing around Rs 40,000 crore in the forthcoming years, the analysis by Crisil noted.
The report highlights a distinct shift for small airports like those in Ahmedabad and Guwahati, among others, on the verge of notable expansion to meet rising passenger traffic. This wave of capex is expected to double in intensity due to manageable project risks and robust fundraising capabilities of their sponsors, ensuring sustainable growth amid escalating travel demands.
(With inputs from agencies.)
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