At last is indeed some hope for India’s beleaguered aviation industry. According to latest FICCI-KPMG report India’s aviation sector has massive potential and could become the third largest aviation market by 2020 and the largest by 2030.
the report said that India has high untapped market and air-travel evades about 99.5% of the population in the country because of high costs and other reasons. However, expansion in the industry is driven by Low Cost Carriers, modern airports, Foreign Direct Investments in domestic airlines, cutting edge Information Technology interventions and a growing emphasis on No-Frills Airports and regional connectivity.
Many airline companies are working towards adding fleets of aircraft over the next few years and this could indeed spur the growth in the industry.
Informatively, SpiceJet is purchasing 42 Boeing-made 737 Max 8 passenger jets that seat 189 in a deal worth US $4.4 billion. The delivery of first aircraft is scheduled for 2018.
Also, the report said that currently India’s aviation industry at around $16 billion is one of the top ten in the world. But this is only a small part of the potential, especially since India’s geographical position is very convenient and the country also has swiftly expanding middle-class.
In another report FICCI-KPMG says that India’s aviation industry will also create huge number of jobs in the coming years. Jobs will grow two-fold from 62,000 in FY11 to 1.17 lakh by 2017. Growth in direct creation of jobs will be more than that for indirect positions. Accordingly, opportunities for pilots, cabin crew, aircraft engineers and technicians, ground handling staff, cargo handling staff, administrative and sales staff will open up.
Both reports were presented at the India Aviation 2014 that began yesterday in Hyderabad.
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