Strict regulation, taxes and costly infrastructure have been identified by Iata as “immense challenges” that India needs to overcome to achieve economic growth from aviation.
The number of travellers to, from and within India will reach almost 280 million a year by 2029 as it becomes the world’s third-largest aviation market.
But Iata director general and chief executive, Tony Tyler, highlighted key areas which are holding back the sector.
Speaking in Delhi, he said: "Already aviation and aviation-related tourism support seven million Indian jobs and $23 billion of India’s GDP. The healthy growth of the sector has the potential to expand these benefits tremendously.
“But there are immense challenges which must be overcome - as seen in the sector’s financial performance.
“While demand growth is robust and some airlines are generating profit, sector-wide losses for India are still expected to exceed $1 billion this year.
14/07/15 Phil Davies/travelweekly
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The number of travellers to, from and within India will reach almost 280 million a year by 2029 as it becomes the world’s third-largest aviation market.
But Iata director general and chief executive, Tony Tyler, highlighted key areas which are holding back the sector.
Speaking in Delhi, he said: "Already aviation and aviation-related tourism support seven million Indian jobs and $23 billion of India’s GDP. The healthy growth of the sector has the potential to expand these benefits tremendously.
“But there are immense challenges which must be overcome - as seen in the sector’s financial performance.
“While demand growth is robust and some airlines are generating profit, sector-wide losses for India are still expected to exceed $1 billion this year.
14/07/15 Phil Davies/travelweekly
