Home' Asian Aviation : AAV April 2016 Contents 28 AsianAviation | APRIL 2016
he figures are telling. Indian domestic
passenger traffic peaked at 80 million in
2015 – growing more than 21 percent over
2014’s figure of 66.4 million. This has led
OEMs like Boeing and Airbus to forecast that Indian
airlines will order up to 1,740 aircraft over the next
“Nowhere else in the world has there been such
a high traffic growth,” said Dinesh Keskar, Boeing’s
senior vice president for Asia-Pacific and India.
“We are confident about the India forecast
because of economic growth, middle-class growth
and the airlines are doing well. There is (still) a
relatively low number of aircraft compared to other
emerging markets,” Airbus’ head of marketing in Asia,
Joost Van Der Heijden, said.
But while the outlook for market growth is upbeat,
there is concern over how India’s infrastructure will
grow to meet the new demand.
“It is time for the government and all stakeholders
of the civil aviation industry to leverage this
tremendous business opportunity,” said Pranab
Mukherjee, president of India, in his speech at the
opening of the show.
“India Aviation 2016 is well timed and resonates
with our latest policy initiatives of ‘Make in India’,
‘Stand up India’ and ‘Start Up India.’ It is for global
giants to seize this opportunity and take the lead
to forge long-term partnerships,” said Mukherjee.
“The government is planning to invest around
US$120 billion in development of airport infrastructure
and aviation navigation services over the next decade,”
the president added. “The deeper air penetration to
smaller cities, better connectivity to northeastern India,
and higher disposable incomes of the middle class
are expected to further propel the growth of Indian
civil aviation sector.”
“Make in India, the flagship initiative of the
government, is about win-win partnerships. For
the government, it is finding those partners that
can support and enable the investment and the
development of manufacturing capability in India,
and, for aerospace manufacturing companies, it is
about finding the right partners that offer them a
competitive edge,” said Pratyush Kumar, Boeing’s
president in India.
The growth in India’s aviation sector was
highlighted by the arrival of IndiGo’s first A320neo
and by the signing of an agreement between Air
India and Kuwait-based ALAFCO for 14 Airbus
A320neos on lease with deliveries likely to start
from early next year.
“This induction will augment Air India’s capacity
in the domestic market where there are strong
infrastructure maintenance facilities for the Airbus
A320 family,” the airline said in a statement.
That domestic market and the government’s desire
to expand connections between tier 2 and 3 cities is
driving policy moves to help the industry.
“The potential new policy in India to boost regional
connectivity can open up around 40 routes that
currently do not have non-stop flights. This would be
a very positive development for travellers in India,”
said Mark Dunnachie, vice president for Asia-Pacific
at Embraer Commercial Aviation.
The routes have a Passengers Daily Each Way
(PDEW) density of 25 to 100 and the average
distance for these routes are estimated to be 980nm
way beyond the typical optimum economic range
of a turboprop, but suitable for jets between 70-130
seats such as Embraer’s E-Jets family or second
generation E-Jets E2s, he added.
India is also seeing large investments in the
domestic aviation sector with Civil Aviation Secretary
R.N. Choubey telling participants at the air show that
some US$12.1 billion will be spent in the five years
from 2012-2017 with US$9.3 billion coming from
the private sector to build new airports and expand
or modernise existing facilities.
Choubey said the growth in regional routes
will also be helped by government plans to use
special financing like “viability gap funding,” which
is used for national infrastructure projects that are
economically justified but the “financial viability”
may be lacking.
Currently, only 75 airports in India have scheduled
airline services and Choubey said the country has
350 or more unused airstrips that could be “revived”
and linked to smaller aviation markets. Reviving
those facilities would also be made easier because
the land already belongs to the government, which
would save a huge amount of time in development
because of India’s arcane and burdensome land
acquisition bureaucracy. ✈
IndiGo and Pratt & Whitney officials
welcome IndiGo’s first A320neo.
As the five-day India Aviation show got underway at Hyderabad on March 16, the zeal
to take the aviation industry forward was clearly there with India being touted as the
third-largest aviation market in the world by 2020 when passenger traffic will hit 370
million. Neelam Mathews explains.
Indian civil aviation
on track for growth
“Nowhere else in the world has there
been such a high traffic growth.”
senior vice president for Asia-Pacific and India, Boeing
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30/03/2016 6:54:06 PM
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