Newstrack

Centre positive about Indian aviation growth post-2010

Chetan Kapoor - Mumbai

Ashok Chawla Secretary to the Government of India, Ministry of Civil Aviation

Given the current bumps faced by the Indian aviation industry, the ministry of civil aviation is positive about infrastructure development to support its growth post-2010. Speaking at the Financial Express Round Table Conference on 'Aviation Skies Ahead', Ashok Chawla, secretary to the Government of India, ministry of civil aviation said, "We are facing a runaway growth with 31 per cent growth in domestic traffic and 16 per cent in international traffic; besides our airports handling about 100 million passengers. Yet this is only the tip of the iceberg. By addressing certain infrastructure issues, we are confident that this growth can be sustained, as there is a lot of potential and scope."

He further added that the new aviation policy will push competition in every sphere - airlines, airports, cargo handling, pilot schools, etc, so that the passengers do not suffer in the bargain. "Once the skeleton is in place," he said, "the airlines will have to prove their mettle, and only the more serious players will remain. Thus, there would be a major change in the aviation industry from 2010 onwards. Even the current five-year old policy to fly international won't last forever; predictably it will change in the coming two to three months."

He continued, "However, the grounds on which we will allow the young Indian carrier to fly international routes is yet to be finalised as the carriers would be providing public service, due to the bilateral signed between the countries."

The centre is also likely to open up foreign direct investment (FDI) for the industry, once the consolidation phase is over and the industry matures.

"Capitalisation is necessary, but the answer is not necessarily FDI. The country is not short of capital to invest in this burgeoning industry, but our view is that one must first strengthen and consolidate before opening for FDI - which is currently pegged at 49 per cent in some areas and is set to open in MROs, cargo and pilot training academies," he concluded.