Civil Aviation Minister Suresh Prabhu inaugurated the Global Aviation Summit 2019 in Mumbai on Tuesday. The two-day summit, with a theme ‘Flying for all-especially the next 6 Billion’, is being organised by the Ministry of Civil Aviation in association with FICCI. It offers stakeholders an opportunity to explore, deliberate and understand how technology-driven innovations will change air travel in the decades to come. India is the seventh-largest country by area and the second-most populous with over 1.35 billion people. It is one of the fastest growing economies of the world and is likely to become the 5fth largest in 2019. The Indian aviation market is on a high growth path. Total passenger traffic to, from and within India, during Apr-Nov 2018 grew by around 15% year on year as compared to around 6% globally. India is now the seventh largest aviation market with 187 million passengers in FY 2017-18. It is expected to become the third largest by 2022.
Where the civil aviation industry in india stands today?
- India has become the third-largest aviation market in the world
- The Crisil InfraInvex’s score for the aviation sector has already risen to 6.5 from 6.1 a year ago
- The investment potential for Indian aviation sector is estimated to be around $100 billion over the next 12-15 years
- It is expected to be among the top three countries by 2024 from its current seventh position
- In its latest 20-year forecast for the aviation industry, the International Air Transport Association (IATA) says that air passenger numbers worldwide could double to 8.2 billion in 2037.
- While China will climb up one spot to displace the US as the world’s largest aviation market in the mid-2020s, India will take the third place by surpassing the U.K. around 2024, according to the IATA forecast.
- In fact, the Asia-Pacific region is expected to see the fastest growth at the rate of 4.8%, followed by Africa (4.6%) and West Asia (4.4%).
- Even though airlines are growing, but finances are declining due to rise in prices of aviation fuel.
- Aviation is the hen that lays the golden eggs. Thus, it is heavily taxed. By taxing it more, we are killing the hen.
- There is a great competition wrt pricing not only within various airlines but also with other modes of transport. For instance, when the prices of air tickets rise, people switch to railways.
- Indian aviation companies have been unable to balance sustainability and
- No airlines company has been able to formulate a credible currency policy to protect them from exchange rate fluctuation.
- We need cheaper source of finance.
- Pending infrastructural project stifling the growth of civil aviation sector should be executed at a fast pace.
- ATF (aviation turbine fuel) should be brought under GST.
- We should be opening international routes faster for our airlines that are successful.
- The industry stakeholders should collaborate with policy makers for growth of India’s civil aviation industry.