Monday, June 12, 2017

Aviation support cast count gains

India's air traffic is expected to record a robust growth in the next decade - and this could benefit ancilliary units linked to the industry.

Apart from presenting a Rs 1.7-lakh-crore opportunity to players in the engineering, procurement, construction (EPC) industry, who will revamp and increase airport capacity, the higher growth would mean good news for online travel agents.

The higher growth could also lead to the doubling of total employment in India's aviation sector from the current 1.4 million jobs.

A recently released report on the Indian aviation industry by Morgan Stanley has forecast a compounded annual growth rate (CAGR) of 13 per cent in passenger traffic between 2016 and 2026, higher than the 11 per cent growth recorded between 2011 and 2016. In 2016, passenger traffic in India touched 100 million, which was ahead of Japan at 96 million. It, however, lagged the US and China by miles.

The report - The Next India-Aviation: A Flight from Cyclical to Secular Growth - cited various reasons for the rise, which included a strong economic growth, expansion of the middle class, share gains at the expense of railways and the government's initiative to accelerate travel penetration through the UDAN scheme.
12/06/17 The Telegraph