Slow Revival In Indian Aviation Sector

Emergence of new players such as AirAsia and Tata-SIA Airline has given boost to 

the sector The Indian civil Aviation sector is showing signs of revival in growth after a period of turbulence with emergence of new players such as AirAsia and Tata-SIA Airline, although domestic passenger traffic handled at Indian airports grew only by 5.2% in 2013-14.

There are also signs of revival in growth of the Aviation sector with the 

announcement of new players like AirAsia and Tata-SIA Airline after a turbulent 

period of withdrawals and losses by some airlines," the pre-Budget Economic Survey 


It further said subsequent to the government's decision to permit foreign airlines 

to invest up to 49% in Indian scheduled air transport service operators, proposals 

of AirAsia and Tata-Singapore Airlines have been given no objection certificates.

In a bid to further boost the sector, the government had also revised the validity 

     in principle approval for import of aircraft by scheduled operators to 10 

years from 5 years on account of longer delivery schedule of aircraft by 


According to the Economic Survey 2013-14 tabled in Parliament today, domestic 

passenger traffic handled at Indian airports stood at 122.43 million in 2013-14 as 

compared to 116.37 million in 2012-13.

In terms of international passenger traffic, Indian airports handled 46.62 million 

in 2013-14 as against 43.03 million, up 8.34%.

The survey said international cargo throughput at Indian airports last fiscal stood 

at 1.44 MMT as compared to 1.41 MMT in the previous fiscal.

During 2013-14, domestic cargo throughput was at 0.84 MMT as against 0.78 MMT, a 

growth of 7.7%, it added.

In terms of airport infrastructure, the survey said "modernisation of existing 

airport infrastructure in metro and non-metro cities and construction of greenfield 

airports were contemplated".

Out of 35 non-metro airports identified for development based on regional 

connectivity, work has been completed at 33, while development work of Vadodra and 

Khajuraho airports were in progress, it added.                                      


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Mohini Porwal [ B Sc]
Trainee News Editor