The International Aviation Summit began in New Delhi, India on September 4, 2018. The seminar has been jointly organised by the Airports Authority of India, Ministry of Civil Aviation and International Air Transport Association (IATA).
Speaking on the occasion, Union Minister for Civil Aviation Suresh Prabhu revealed that the Civil Aviation Ministry is coming up with Vision 2035 under which it plans to build 100 new airports across India in the next 10-15 years with an investment of USD 60 billion and address the major issues concerning aviation industry such as airport infrastructure, taxation and use of technology.
The airports will be constructed through a public-private partnership. The Minister also said that India's economy is poised to grow to USD 10 trillion by 2035 and aviation sector will be one of the major contributors to that growth.
Besides this, the Minister along with the Minister of State for Civil Aviation Jayant Sinha congratulated the aviation fraternity for achieving the unique milestone of 50 months of double-digit growth in the Indian Aviation sector.
Other Key Details
• Suresh Prabhu also revealed that the Government is working on a cargo policy and is planning to have a cargo hub in India.
• According to IATA, India is expected to overtake Germany, Japan, Spain and the UK within the next ten years to become the world's third largest air passenger market.
• The Indian Government is preparing for a massive air traffic surge to handle as many as 100 crore passengers in next 15-20 years, much above the 50 crore trips a year as predicted by IATA.
Difficult to make money in India, says IATA Chief
Speaking at the International Aviation Summit, Director General of IATA, Alexandre de Juniac said, “IATA members tell me it's very difficult to make money in India. India is a challenging place to do business because of poor infrastructure and government policies impose an excessive cost.”
The IATA represents more than 280 airlines in different parts of the world. Its members include Air India, Jet Airways and Vistara.
According to IATA chief, India's aviation industry is showing contrast as on one hand there are infrastructural and economic issues plaguing the sector while on the other, airline companies are busy buying planes to meet the demand.
With a surge in domestic air travel demand in India, the country's airlines are gearing up for a rise and have ordered around 1,000 aircraft over the next eight years. But despite traffic growth, the financial outlook for domestic airlines has deteriorated dramatically since January.
Junaic also said that imposing GST on international air tickets is a violation of international standards. The GST rate is 5 percent and 12 percent on economy and business class tickets respectively.
He also criticised the ongoing delay in opening the Navi Mumbai International Airport and said that nobody expects Navi Mumbai airport to become operational by 2019 as planned. The Navi Mumbai airport was first proposed in 1997 as a secondary airport to support the busy Mumbai airport.
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