Tourism sector hopes for a lift-off with FDI in aviation

New Delhi: The aviation industry is not the only one betting its future on the proposed foreign direct investment (FDI) in the sector. The tourism industry, too, is hoping to get a boost through improved air connectivity, higher fleet capacity and competitive fares.
Peter Kerkar, director, Cox & Kings, said, “Aviation is an important component of the travel business and a strong aviation infrastructure will act as a catalyst for the growth of the travel and tourism industry.” He said there was a need to connect to Tier II and Tier III cities, which would come with more investment in the sector.
Calling it a step in the right direction, for a country which is an underserved market in terms of connectivity, travel companies say airlines can build more synergies with international players in route management.
“There will be more access to hinterland. Onward flight linkages would be possible. India’s bilateral rights are also not utilised well and this is a good opportunity to cash in on that for improved tourism,” said Arjun Sharma, managing director, Le Passage to India. Among international destinations, which stand to gain, are the US, Europe and Australia, which are currently connected in a limited way.
The government is planning to allow foreign airlines to pick up to 49 per cent stake in Indian carriers. At present, up to 49 per cent FDI is allowed in the aviation sector, but foreign airlines are not permitted to pick up a stake.
29/01/12 Ruchika Chitravanshi/Business Standard

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Categories: Foreign Jan 2012, Indian Aviation- In General Jan 2012