Monthly Update
SECTOR: INFRASTRUCTURE
Indian Airports
BSE Sensex: 16,158
S&P CNX: 4,796
6 November 2009
?
Delhi airport overtakes Mumbai airport to emerge as Largest airport:
During YTD FY10, passenger traffic
handled at Delhi airport stood higher than Mumbai airport at 12.2m (vs 12.1m for Mumbai airport). In FY04, Delhi
airport had 22% lower passenger traffic vs Mumbai airport, which declined to 2.5% in FY09.
?
September-09 traffic growth robust, third consecutive month of double digit growth:
In September 2009,
passenger traffic at Delhi airport grew by 21% YoY and for Mumbai airport at 15% YoY. For Hyderabad airport, the
growth in passenger traffic stood at 15% YoY. For 2QFY10, passenger traffic at Mumbai airport grew by 10% YoY
and 20% YoY for Delhi airport. The difference in growth rate is attributable to International passenger traffic, which
grew by 4.8% YoY for Delhi airport, vs decline of 0.8% YoY at Mumbai airport for Sep-09. Key thing to note is that
Delhi airport has been recording positive international traffic growth from last 5 months, vs de-growth at Mumbai
airport over the same period.
?
All-India August 2009 passenger traffic MoM run-rate improves, YoY growth driven by low base:
In
August 2009, total passenger traffic grew by 17% YoY to 9.8m, comprising of domestic passenger of 7m (up by 22%
YoY) and international passenger traffic of 2.8m (up by 6% YoY). This represents second consecutive month of
double digit growth, supported by the lower base effect, as passenger traffic reported first YoY decline in July 2008.
However, there has been improvement in MoM run-rate. The average monthly run rate has improved from sub-9m
passengers/month to 9.5m+passenger/month.
?
ATMs grew by 6% YoY, Cargo growth at 8% YoY:
In August 2009, total Air Traffic Movement (ATMs) stood at
111k up by 6% YoY vs passenger growth of 17% YoY. For Delhi airport, ATMs grew by 30%, vs 21% growth in
passenger traffic; while for Mumbai airport ATMs de grew by 1.1%, vs passenger growth of 15%. Hyderabad
airport witnessed 3.2% growth in ATMs, vs passenger traffic growth of 14%. All India air cargo traffic in August
2009 was up 8% YoY to 160k tons, comprising of 21% YoY increase in domestic cargo and 2% YoY increase in
international cargo.
AIRPORT TRAFFIC SUMMARY (% GROWTH YOY)
PASSENGERS
SEP-09
YTDFY10
CARGO
SEP-09
YTDFY10
SEP-09
ATM
YTDFY10
Delhi
Mumbai
Hyderabad
All India*
20.8
15.2
14.2
17.2
8.4
0.5
-3.6
3.8
0.6
-
6.2
8.0
1.5
-
14.8
1.9
29.4
1.7
3.2
5.9
5.7
-1.1
-3.2
-0.8
Source: AAI
DELHI AIRPORT HAS OUTPERFORMED MUMBAI AIRPORT IN PSGR TRAFFIC GROWTH (M PASSENGERS)
32.0
24.0
16.0
8.0
0.0
10.4
Delhi Airport
15.7
Mumbai Airport
16.2
18.4
20.4
22.2
24.0
25.9
22.8
23.4
12.2 12.1
13.3
12.8
Source: AAI
Satyam Agarwal (AgarwalS@MotilalOswal.com) +91 22 3982 5410/ Nalin Bhatt (NalinBhatt@MotilalOswal.com) +91 22 3982 5429

Infrastructure
August 2009 – Monthly run-rate improves, Low base leads to double digit
growth
AUGUST-09: SECOND CONSECUTIVE MONTH OF DOUBLE DIGIT GROWTH
PARTICULARS
2009
AUGUST
2008
YOY (%)
FY10
YTD
FY09
YOY (%)
Domestic passenger traffic
grew by 22% YoY to 7mn (vs
18.6% YoY growth in July
2009), while international
passenger traffic grew by 6%
YoY to 2.8m
Passenger Traffic (m)
Domestic
International
Air Traffic (’
000s)
Domestic
International
Air Cargo (‘
000 tonnes)
Domestic
International
9.9
7.0
2.8
112
88
23
160
58
102
8.4
5.8
2.7
105
83
22
148
48
100
17.2
22.4
5.9
5.9
6.4
4.1
8.0
20.7
1.9
48.9
35.3
13.6
552
438
114
748
260
489
47.1
34.2
12.9
557
447
110
734
231
504
3.8
3.2
5.3
-0.8
-2.0
4.1
1.9
12.6
-3.0
Source: AAI
YTD GROWTH AT 3.4% YOY ON BACK OF STRONG AUG-09
SEQUENTIAL RECOVERY IN TRAFFIC IN AUGUST (M)
11.0
10.0
9.0
8.0
Passenger Traffic up by
17% in Aug 2009
YoY Growth
YTDFY10
FY08
4%
21%
11
10.3
10
9.4
9.5
8.9
8.4
8
8.8
8.7
8.8
9.0
9.0
9.9
9.7
9.9
FY07 31%
FY09 -6.8%
9
7.0
7
7.6
6.0
Source: AAI
During YTD August-09, the overall passenger growth stood at 3.4% YoY (up from
1% YoY growth in YTD July-09) on back of 17% YoY growth in Aug-09
SPIKE IN MONTHLY RUNRATE FOR DOMESTIC PSGR, WHICH REMAINED FLAT SINCE NOV-08 AT 6.5M / MONTH
Domestic Traffic (m)
International Traffic (m)
Domestic passenger traffic
has shown a uptick and
crossed average of 6.5m. On
the other hand, the
international passenger
traffic has sustained its
improvement and clocked
traffic of 2.8m
9.0
3.0
2.9
2.8
2.6
2.8
2.7
2.6
2.6
2.4
2.5
2.3
8.0
6.9
7.0
5.8
6.0
5.2
6.5
7.7 7.3
6.9
7.0
6.4
6.2
2.5
5.0
2.0
Source: AAI
6 November 2009
2

Infrastructure
UP MOVE IN DOMESTIC PSGR TRAFFIC IN AUGUST-09 (% YOY)
30%
Domestic
International
Domestic passenger traffic has has
show n a significant up move in August
2009
Domestic passenger
traffic showed sustained
improvement over
last 4 months where as
international traffic
YoY showed a dip of 160
basis point
15%
0%
-15%
-30%
Source: AAI
IMPROVEMENT IN DOMESTIC PSGR TRAFFIC GROWTH IN YTD FY10, VS FY09
60%
Revival of Growth rate of International
Passenger Traffic in YTDFY10
39%
24%
28%
17%
15%
15%
23%
16%
6%
Domestic
International
International
passenger traffic registered a
growth of 5% YoY while
domestic passenger traffic
grew by 3% YoY, vs 6% and -
11% for FY09
40%
20%
10%
3% 5%
0%
-4%
-20%
FY05
FY06
FY07
FY08
-11%
FY09
YTDFY09
YTDFY10
Source: AAI
SHARE OF INTERNATIONAL PASSENGERS HAS DECLINED YOY BY 100BPS TO 28% IN YTDFY10
YoY
160
21.6%
23.5%
23.5%
31.4%
21.2%
117
109
96
73
-6.8%
-14.3%
13.8%
During YTDFY10, Domestic
passenger traffic constituted
72% of the total passenger
traffic whereas the
International passenger
traffic constituted 28%
120
International
Domestic
80
49
40
66%
0
FY04
59
69%
67%
73%
74%
0
71%
73%
72%
FY05
FY06
FY07
FY08
FY09
YTDFY09
YTDFY10
Source: AAI
6 November 2009
3

Infrastructure
Total passenger traffic for
Mumbai Airport grew by
15.2% YoY in September
2009, while de-growth in
international passenger
traffic continues. This, we
believe could impact
revenues at Mumbai airport
as international passengers
(through ATMs, duty free,
F&X, etc) are large
contributor to revenues
Mumbai Airport: Growth in traffic picking up
MUMBAI AIRPORT PASSENGER TRAFFIC GREW BY 15.2% YOY IN SEPTEMBER 2009
SEPT
2009
2008
YOY (%)
FY10
YTD
FY09
YOY (%)
Passenger Traffic (m)
Domestic
International
Air Traffic (’
000s)
Domestic
International
Air Cargo (‘
000 tonnes)
Domestic
International
1.9
1.3
0.6
17.8
12.6
5.2
-
-
-
1.6
1.0
0.6
17.5
12.3
5.3
46.6
13.3
33.4
15.2
24.2
-0.8
1.7
3.0
-1.3
12.1
8.2
3.9
95.8
68.9
26.9
229.9
70.2
159.8
12.0
7.9
4.1
114.8
82.2
32.6
280.2
78.1
202.1
0.5
3.2
-4.7
-16.6
-16.3
-17.4
-17.9
-10.2
-20.9
Source: AAI
MUMBAI PASSENGER TRAFFIC MONTHLY RUNRATE IMPROVES (M)
2.4
Passenger Traffic up by 15%
in Sept 2009
YoY Growth
YTDY10
FY08
FY07
0.54%
16%
21%
2.1
Passenger traffic has
grown on back of domestic
passenger movement, while
international passenger
traffic continued to de-grow
1.8
FY09 -9.4%
1.5
Source: AAI
MIAL: INTERNATIONAL PASSENGER TRAFFIC WITNESSING SUSTAINED DECLINE
YOY GROWTH RATE IN PASSENGER TRAFFIC
30%
Domestic
International
MIAL International passanger traffic has been
show ing de-grow th since Dec08
15%
Mumbai airport is the only
airport which has witnessed
a declining trend in
international passengers
0%
-15%
-30%
Source: AAI
6 November 2009
4

Infrastructure
MONTHLY RUN RATE OF PASSENGER TRAFFIC
3.2
Domestic
International
However, international
passenger traffic has been
growing at robust pace for
other major airports and
regional airports like Goa
(45% YoY), Cochin (13%),
Ahmedabad (30% YoY)
2.4
1.6
0.8
0.0
Source: AAI
SHARE OF DOMESTIC PASSENGER IN TOTAL TRAFFIC AT 68% IN YTD FY2010 (VS 66% YTDFY2009)
YoY Ch.
32
17.9%
17.2%
21.1%
16.3%
22
17.4%
26
-9.4%
23
14.4%
0.4%
During YTDFY10,
Domestic passenger traffic
constituted 68% of the total
passenger traffic at Mumbai
Airport, whereas the
International passenger
traffic constituted 32%
24
International
Domestic
18
16
16
13
69%
67%
65%
8
60%
0
FY04
FY05
61%
63%
66%
68%
FY06
FY07
FY08
FY09
YTDFY09
YTDFY10
Source: AAI
6 November 2009
5

Infrastructure
Delhi Airport: Overtakes Mumbai Airport in passenger traffic
DELHI AIRPORT PASSENGER TRAFFIC GREW BY 21% IN SEPTEMBER 2009
SEPT
2009
2008
YOY (%)
FY10
YTD
FY09
YOY (%)
Passenger Traffic (m)
1.9
1.3
0.61
22.5
18.1
4.4
13.5
26.5
1.6
1.0
0.58
17.4
12.6
4.8
39.8
12.0
27.8
20.8
30.0
4.8
29.4
43.2
-7.1
0.6
12.5
-4.5
12.2
8.4
3.82
116.7
86.4
30.3
231.0
75.0
155.9
11.3
7.7
3.58
110.4
81.0
29.4
227.6
68.0
159.6
8.4
9.2
6.8
5.7
6.6
3.3
1.5
10.4
-2.3
Source: AAI
Passenger traffic growth at
Delhi Airport was superior
at 21% YoY, vs 15% YoY for
Mumbai airpor
Domestic
International
Air Traffic ('000s)
Domestic
International
Domestic
International
Air Cargo ('000 tonnes) 40.0
DELHI AIRPORT HAS OUTPERFORMED MUMBAI AIRPORT IN PSGR TRAFFIC GROWTH
Passenger Traffic (m)
Passenger Traffic Growth (%)
Key thing to note is that
Delhi airport recorded
higher traffic growth than
Mumbai airport during
FY05-08, and it continued
its performance in YTDFY10
32.0
Delhi Airport
Mumbai Airport
25.9
23.4
24.0
22.8
22.2
20.4
Delhi Airprot
32%
Mumbai Airport
24.0
1
8.4
1
5.7 1
6.2
16%
1 1
2.2 2.1
16.0
8.0
1
3.3
1
0.4
1
2.8
0%
0.0
-16%
DELHI AIRPORT HAS OUTPERFORMED MUMBAI AIRPORT IN PASSENGER TRAFFIC GROWTH/DE-GROWTH
During September 2009,
Delhi airport registered the
highest passenger traffic
growth since the past
21 months, constituting YoY
growth of 30% in domestic
passenger traffic and 5%
YoY increase in
International passenger
traffic
2.3
Passenger Traffic up by 22% in
Sept 2009
YoY Growth
YTDFY10
FY08
8.6%
17%
-4.7%
26%
2.1
FY09
FY07
1.9
1.7
1.5
Source: AAI
6 November 2009
6

Infrastructure
INTERNATIONAL PASSENGER TRAFFIC IS THE KEY EXCEPTION
YoY Ch. 23%
27%
32
International
Domestic
25.9%
17.3%
18.4%
24
-4.7%
23
17.4%
8.6%
During YTDFY10, domestic
passenger traffic constituted
69% of the total passenger
traffic at Delhi Airport
24
16
16
10
8
58%
0
FY04
FY05
FY06
61%
64%
13
20
69%
67%
66%
68%
69%
FY07
FY08
FY09
YTDFY09
YTDFY10
Source: AAI
6 November 2009
7

Infrastructure
Hyderabad Airport: Double digit traffic uptick
PASSENGER TRAFFIC DECLINED BY 16.3% YOY FOR MAY 2009
SEPT
FY10
FY09
YOY (%)
FY10
YTD
FY09
YOY (%)
Passenger Traffic (m)
0.5
0.37
0.14
6.4
5.30
1.12
5.5
3.55
1.95
0.4
0.32
0.12
6.2
5.23
0.98
5.2
1.90
3.28
14.2
14.8
12.6
3.2
1.2
14.0
6.2
86.7
-40.6
3.2
2.30
0.87
39.6
33.12
6.52
30.6
15.50
15.06
3.3
2.53
0.75
40.9
35.42
5.52
26.6
11.38
15.25
-3.6
-9.3
15.5
-3.2
-6.5
18.0
14.8
36.2
-1.2
Source: AAI
Passenger traffic for
Hyderabad Airport was at
10% YoY in September 2009,
aided higher by domestic
passenger traffic growth of
15% YoY
Domestic
International
Air Traffic ('000s)
Domestic
International
Air Cargo ('000 tonnes)
Domestic
International
HYDERABAD PASSENGER TRAFFIC MONTHLY RUNRATE (M)
0.7
Passenger Traffic up by
10% in Sept 2009
0.6
YoY Growth
YTDFY10 -4.2%
FY08
0.6
FY07
0.5
44%
22%
During YTDFY10,
Hyderabad airport
passenger traffic declined to
4.2% YoY which was 6.4 for
August month
FY09 -11.1%
0.4
Source: AAI
SHARE OF DOMESTIC PASSENGERS DOWN 400BPS TO 73% IN YTDFY10, VS 77% IN YTD FY09
During YTDFY10,
Domestic passenger traffic
constituted 73% of the total
passenger traffic at
Hyderabad Airport, down
from77% in corresponding
previous period
YoY Ch. 29%
8.0
40%
International
Domestic
44%
22%
24%
7.0
-11%
13.6%
-4.2%
6.2
5.7
3.9
6.0
4.0
2.2
2.0
72%
0.0
FY04
FY05
FY06
FY07
FY08
FY09
YTDFY09
YTDFY10
Source: AAI
2.8
75%
74%
79%
79%
75%
77%
73%
6 November 2009
8

Infrastructure
N O T E S
6 November 2009
9

Infrastructure
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6 November 2009
10