India to become third largest aviation market by 2020 : Indian Aviation Report
Posted on: 17 Mar 2016 17:53:56
17 March 2016 Current Affairs: The FICCI-KPMG India Aviation Report launched on the second day of India Aviation Show here said the country is well on its way to become the third largest aviation market by 2020.With 81 million trips, India's domestic aviation market grew at over 20.3% during Janurary-December 2015, the highest ever growth rate recorded in the world.In January, 2016, the passenger growth is 22%. Some people attribute this growth to fall in crude prices, but no other country in the world had achieved this kind of growth during the period 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 largely attributed to the growing economy, increased competition among airlines, especially among low cost carriers, modern airports, greater use of technology, foreign direct investment and increased emphasis on regional connectivity.According to Amber Dubey, partner and India head of aerospace and defence at KPMG, 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.India registered a growth of 17.1% in total passengers throughput financial year 2015-16 till January, 2016, standing at 184 million. Passenger throughput is expected to reach around 370 million by 2020, with domestic traffic constituting around 80% of the total throughput .According to International Air Transport Association, passenger traffic on international routes showed an increase of 6.5% in 2015 compared to 2014. In comparison, during April-December 2015, international passenger throughput at Indian airports grew at 7.7%. 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 and Tier-3 cities. Many Indian states have taken positive initiatives, largely in the field of development of airports, reduction in sales tax rates on ATF and direct subsidy to airlines for improvement of connectivity, according to the report.
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