NEW DELHI, MAR 27, 2013: SPEAKING at a function in the capital on the occasion of Aviation Day, the Minister for Civil Aviation, Mr Ajit Singh, said that India would be the third largest aviation market by 2020. Addressing senior representatives of the aviation industry, the Minister informed that studies suggest, the countries airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of USD 120 billion by 2020.

The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .

Mr Singh said that aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over USD2.2 trillion of Global GDP.

He noted that studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of USD 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.

The Minister said that the prospects and possibilities of growth of Indian aviation markets are huge. The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support, he added.

He said what has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of USD 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about USD 9.3 billion is expected from the private sector.

The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps, he added.