Signs of revival in Indian aviation sector: Economic Survey
Emergence of new players such as AirAsia and Tata-SIA Airline shows signs of revival
New Delhi: The Indian civil aviation sector is showing signs of revival in growth after a period of turbulence with emergence of new players such as AirAsia and Tata-SIA Airline, although domestic passenger traffic handled at Indian airports grew only by 5.2 per cent in 2013-14.
"There are also signs of revival in growth of the aviation sector with the announcement of new players like AirAsia and Tata-SIA Airline after a turbulent period of withdrawals and losses by some airlines," the pre-Budget Economic Survey said. It further said subsequent to the government's decision to permit foreign airlines to invest up to 49 per cent in Indian scheduled air transport service operators, proposals of AirAsia and Tata-Singapore Airlines have been given no objection certificates.
In a bid to further boost the sector, the government had also revised the validity of 'in principle' approval for import of aircraft by scheduled operators to 10 years from 5 years "on account of longer delivery schedule of aircraft by manufacturers". According to the Economic Survey 2013-14 tabled in Parliament today, domestic passenger traffic handled at Indian airports stood at 122.43 million in 2013-14 as compared to 116.37 million in 2012-13. In terms of international passenger traffic, Indian airports handled 46.62 million in 2013-14 as against 43.03 million, up 8.34 per cent.
The survey said international cargo throughput at Indian airports last fiscal stood at 1.44 MMT as compared to 1.41 MMT in the previous fiscal. During 2013-14, domestic cargo throughput was at 0.84 MMT as against 0.78 MMT, a growth of 7.7 per cent, it added. In terms of airport infrastructure, the survey said "modernisation of existing airport infrastructure in metro and non-metro cities and construction of greenfield airports were contemplated". Out of 35 non-metro airports identified for development based on regional connectivity, work has been completed at 33, while development work of Vadodra and Khajuraho airports were in progress, it added.