Infrastructure constraints and restrictive regulations may prove to be a hurdle for the Indian aviation sector’s targeted double-digit growth, although the Asian country is projected to be the third largest aviation market in the world, behind only China and the United States by 2037.
An estimated 570mn passengers will travel to, from, or within India at that time, a tripling of 2017 traffic, according to the International Air Transport Association.
The traffic boom is largely due to an increase in connectivity — there are now 700 domestic airport pairs, a 50% increase on 2015 levels — and a decrease in fares. After adjusting for inflation, average domestic fares have decreased more than 70% since 2005.
International destinations have also risen to 304, up from 230 a decade ago, and the outbound cargo market has topped one million tonnes, growing almost 17% year-on-year last year.
India’s Civil Aviation Ministry had recently unveiled its ‘Vision 2040’ projecting growth in the country’s aviation industry over the next two decades.
By 2036, India’s population is expected to reach 1.6bn and average incomes should rise to almost $5,000 per capita, a five-fold increase on 2006. That means the number of middle-class households will make up 20% of the population by 2036, up from 2% in 2006.
“India’s middle class is 100mn more than the entire population of the United States,” noted Qatar Airways Group chief executive HE Akbar al-Baker.
“So, you can see the potential. India will be important not just for Indian and Gulf carriers, but for all international carriers because of this growing middle class,” al-Baker said at an industry event in Mumbai recently.
But India is still not an easy place for airlines to do business, says IATA.
Firstly, demand growth continues to outpace airport development. India needs to develop and implement a comprehensive airport plan to support growth. Secondly, India’s airlines need to generate sustainable profits to fund growth and invest in new services.
The problem is confounded by rupee depreciation that has hit the Indian carriers hard, as it did a few years ago.
India is one of the toughest markets in which to survive with Kingfisher airlines founded by now-fugitive businessman Vijay Mallya collapsing and national carrier Air India needing repeated state bailouts as ultra-low fares fail to cover the costs.
Some Indian carriers are occasionally forced to sell tickets at base prices of as low as Rs1 to attract the fastest growing middle class in the world.
30/01/19 Pratap John/Gulf Times
To Read the News in full at Source, Click the Headline
An estimated 570mn passengers will travel to, from, or within India at that time, a tripling of 2017 traffic, according to the International Air Transport Association.
The traffic boom is largely due to an increase in connectivity — there are now 700 domestic airport pairs, a 50% increase on 2015 levels — and a decrease in fares. After adjusting for inflation, average domestic fares have decreased more than 70% since 2005.
International destinations have also risen to 304, up from 230 a decade ago, and the outbound cargo market has topped one million tonnes, growing almost 17% year-on-year last year.
India’s Civil Aviation Ministry had recently unveiled its ‘Vision 2040’ projecting growth in the country’s aviation industry over the next two decades.
By 2036, India’s population is expected to reach 1.6bn and average incomes should rise to almost $5,000 per capita, a five-fold increase on 2006. That means the number of middle-class households will make up 20% of the population by 2036, up from 2% in 2006.
“India’s middle class is 100mn more than the entire population of the United States,” noted Qatar Airways Group chief executive HE Akbar al-Baker.
“So, you can see the potential. India will be important not just for Indian and Gulf carriers, but for all international carriers because of this growing middle class,” al-Baker said at an industry event in Mumbai recently.
But India is still not an easy place for airlines to do business, says IATA.
Firstly, demand growth continues to outpace airport development. India needs to develop and implement a comprehensive airport plan to support growth. Secondly, India’s airlines need to generate sustainable profits to fund growth and invest in new services.
The problem is confounded by rupee depreciation that has hit the Indian carriers hard, as it did a few years ago.
India is one of the toughest markets in which to survive with Kingfisher airlines founded by now-fugitive businessman Vijay Mallya collapsing and national carrier Air India needing repeated state bailouts as ultra-low fares fail to cover the costs.
Some Indian carriers are occasionally forced to sell tickets at base prices of as low as Rs1 to attract the fastest growing middle class in the world.
30/01/19 Pratap John/Gulf Times
0 comments:
Post a Comment