Expansion of Aviation Market in India

Shri Ajit Singh, the Minister of Civil Aviation informed Rajya Sabha today in a written reply that the passenger traffic has grown at the rate of 17%-18% in the last few years. According to an assessment of the overall outlook of the sector, the fleet of the commercial airlines is expected to touch approximately 1000 aircraft in 2020. However, the projected number of new aircraft required in the next ten years would depend upon various factors including, inter-alia, growth of passenger traffic, growth rate of GDP, foreign tourist arrivals, Index of Industrial Production (IIP) and prospects of the growth of other modes of transport etc. The Minister further informed that the Ministry of Civil Aviation has proposed formation of a Civil Aviation Aerospace Promotion Advisory Council (CAAPAC), which will have members from the regulatory agencies and the aerospace industry. The council will take necessary action to promote aerospace manufacturing activities, review the National Civil Aeronautics Policy, review regulatory framework and recommend medium and long-term measures for promotion of Civil Aeronautics Industry. It will help in identifying areas for development of manufacturing technology and for indigenization of aircraft parts for Indian and global markets. Some airlines and aircraft operators in India have their own organization for the maintenance of aircraft. Air India and Jet Airways have their own hanger facilities for maintenance. There are also Maintenance, Repair and Overhaul (MROs) available in India for providing maintenance facilities to aircraft. However, the existing facilities are not able to fully meet the requirements of the airlines. As a result most of the airlines have to send their aircraft to foreign maintenance organization, the reply informed.