by admin | May 25, 2021 | Business, Economy, Large Enterprise, Markets, News, Politics
New Delhi : India is set to become the third-largest aviation market in the world in terms of passengers by 2026, and an aviation hub for maintenance, repair and overhaul of aircraft, Vice President M. Venkaiah Naidu said on Thursday.
In his address after inaugurating the 2nd Aero Expo India 2017, Naidu called the aviation sector an “important driver” of economy.
“I am sure India will soon emerge as an aviation hub not only in terms of increased air connectivity but also in terms of Maintenance, Repair and Overhaul (MRO) facilities and setting up of ancillary units.
“In the coming years, India is expected to witness rapid growth in the aviation sector. India became the world’s fastest growing domestic travel market for the 22nd time in a row recording a 26.6 per cent year-on-year growth in January 2017, according to IATA. India is witnessing a high-growth trajectory and set to become the third-largest aviation market in the world in terms of passengers by 2026,” he said.
Naidu also highlighted that India’s air cargo is estimated to grow at nine per cent over the next few years and IATA also expects the air passengers to double from 3.8 billion air passengers in 2016 to 7.2 billion by 2035.
“With increasing disposable incomes and a burgeoning middle class, air travel will witness further spurt in the years ahead,” he said adding that he was happy that government’s Udan scheme seeks is promoting regional connectivity by serving the un-served and under-served airports.
“Connecting Tier-II cities, pilgrim towns and historic places with the wider air routes is important for boosting tourism and business travel,” he added.
—IANS
by admin | May 25, 2021 | Business, Large Enterprise
Hyderabad : (IANS) With over 20 percent growth in domestic aviation market in 2015, India is well on its way to becoming the third-largest aviation market by 2020, says a Ficci-KPMG report.
According to the report released on Thursday at the India Aviation 2016 here, with 81 million trips, the domestic aviation market grew at over 20.3 percent during January-December 2015, the highest growth rate recorded in the world.
The total passenger throughput grew by 17.1 percent in 2015-16, standing at 184 million till January 2016. Passenger throughput is expected to reach around 370 million by 2020, with domestic traffic constituting around 80 percent of the total throughput.
The report suggests that aspects such as increasing disposable incomes, fall in prices of Aircraft Turbine Fuel (ATF), increase in tourism, visa reforms, have placed India in a unique position. “This is bringing the country closer to achieving its vision of becoming the largest aviation market by 2030,” says the India Aviation 2016 report.
According to the report, the Indian civil aviation industry has exhibited tremendous resilience to the global economic slowdown and ranks ninth in the global civil aviation market. This is attributed largely to the growing economy, increased competition among airlines, especially among low cost carriers, modern airports, greater use of technology, Foreign Direct Investment (FDI) and increased emphasis on regional connectivity.
The report highlights that the National Civil Aviation Policy (NCAP 2016) is likely to provide a significant fillip to the industry. The various fiscal and monetary incentives, liberal policies focused on ‘ease of doing business’ and enhanced push for regional and global connectivity are extremely positive.
Steps taken to revive and operationalise around 160 airports in India, if chosen carefully, will improve air connectivity to regional and remote areas. Public-Private Partnerships (PPP) in the sector will get substantial support from the state in terms of financing, concessional land allotment, tax holidays and other incentives.
“Enormous growth in domestic passenger traffic, substantial strengthening through government initiatives, decrease in global crude oil prices and airlines showing profits indicates a significantly positive transformation for the Indian civil aviation market,” said Harshavardhan Neotia, president, FICCI.
“The positive impact of NCAP 2016, rise in disposable incomes and the fall in ATF prices are likely to help India leapfrog into the top three of the world,” said Amber Dubey, Partner and India Head of Aerospace and Defence, KPMGA.
He hoped that the government can match domestic ATF prices with global levels for a three year experimental period. “MRO is likely to see a huge revival if the service tax is zero-rated. Growth of aviation and tourism can create a huge multiplier in terms of GDP growth and jobs,” he added.
The report quoted International Air Transport Association (IATA) that passenger traffic on international routes showed an increase of 6.5 percent in 2015 compared to 2014.
During April-December 2015, international passenger throughput at Indian airports grew at 7.7 percent. Middle East continues to lead in the growth of revenue passenger kilometre (RPKM) followed by Asia-Pacific, Latin America and Europe. North America and Africa showed sluggish growth. By 2034, it is expected that Asia-Pacific will be the biggest market for global aviation.
The report strongly suggests that in order to ensure high-geared growth, it is imperative to broaden the base of domestic flyers through greater air connectivity in tier 2/3 cities.
