Civil aviation market expects $5.6 bn growth

It is one of the fastest growing sectors at a rate of 18% annually, the Indian civil aviation market holds out great promise for potential investors.
The International Air Transport Association (IATA) in its latest estimates this year reckons India to be a driving force behind the world’s civil aviation business that is globally expected to grow from $5.1 billion to $5.6 billion this year.
The government is planning to re-develop 45 big and small airports around the country. For greenfield airports, foreign equity up to 100% is permitted through automatic approvals. For existing airports, foreign equity up to 74% is permitted through automatic approvals and up to 100% through special permission (from FIPB).
The Centre for Asia Pacific Aviation (CAPA) predicts that domestic traffic will grow at 25% to 30% a year until 2010 and international traffic growth by 15%, taking the overall market to more than 100 million passengers by the end of the decade. Indian carriers have 480 aircraft on order for delivery by 2012, which compares with a fleet size of 310 aircraft operating in the country today.
06/01/08 Raja Awasthi/Economic Times

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Categories: Indian Aviation- In General Jan 2008