October 3, 2018
Strengthening Indian Aviation Preparing for a Trebling of Passengers
Growth forecasts for India indicate a trebling of passenger demand by 2037.

The International Air Transport Association (IATA) called on the government of India to maximize the potential contribution of aviation to India’s development by addressing infrastructure constraints that limit growth and government policies that impose excessive costs on aviation.

Growth forecasts for India indicate a trebling of passenger demand by 2037 when some 500 million people are expected to fly to, from or within India. Already aviation supports 7.5 million Indian jobs and 30 billion Rupees of GDP (1.5% of the economy).

Global connectivity that only aviation can provide is a critical driver of all modern economies. The financial struggles of India’s airline industry put the stable development of connectivity at risk. And India’s carriers are suffering a "double-whammy" of steeply rising fuel costs and the decline in the value of the Indian Rupee. The rise in fuel costs is particularly acute for Indian carriers for which fuel makes-up 34% of operating costs—well above the global average of 24%.

"While it is easy to find Indian passengers who want to fly, it’s very difficult for airlines to make money in this market. India’s social and economic development needs airlines to be able to profitably accommodate growing demand. We must address infrastructure constraints that limit growth and government policies that deviate from global standards and drive up the cost of connectivity," said Alexandre de Juniac, IATA’s Director General and CEO.

De Juniac’s remarks came in an opening address to the International Aviation Summit in Delhi, co-hosted by the Indian Ministry of Civil Aviation (MoCA), the Airports Authority India (AAI) and IATA. The joint Summit commemorates the approaching milestone of 50-straight months of double digit domestic growth for Indian aviation.

Infrastructure
India’s aviation infrastructure has benefitted from significant upgrades in recent years. "It is clear that India has the capacity to develop effective infrastructure. But the job is not done. Passenger numbers will grow. And infrastructure must not be a bottleneck in fulfilling the needs of travelers and the economy," said de Juniac who called for work in four priority areas:

  • Develop a comprehensive and strategic masterplan for India’s airports. "The infrastructure issue is critical for India’s future. Band-Aid solutions will not do the job," said de Juniac.
  • Remove all obstacles to successfully open Navi Mumbai as quickly as possible. Urgent relief is needed for Mumbai’s severe capacity bottleneck.
  • Modernize airport processes using technology in line with global standards. The DigiYatra initiative will make a significant step in the right direction with digitally connected airports, passengers, systems and flights. In line with this, IATA encouraged the Indian government to support the broad implementation of IATA’s One ID initiative which uses biometric identification (similar to India’s Aadhar identity card) to save time by eliminating the need for repeated document checks in airports.
  • Flexibly use military airspace to expand airspace capacity for civil operations . This was successfully demonstrated with the opening of a conditional airway through restricted airspace over Bhuj and should now be expanded to more areas.

IATA also noted its concerns on government proposals for concession contracts at newly developed greenfield airports. "We believe that it makes no sense to fix a per passenger yield at the outset of a concession contract that is set to run for four decades. Flexible parameters should be set that are regularly reviewed by a regulator. And we know from bitter experiences in Brazil, Australia and elsewhere that selecting the company that simply proposes the highest concession fee does not yield good long-term results," said de Juniac.

Regulation

IATA also encouraged the government to look at ways to improve India’s competitiveness by aligning with global standards and reducing excessive government imposed costs.

  • Zero-rate GST for international travel in line with ICAO principles and international obligations.
  • Create a more competitive market for jet fuel by:
    • Adding domestic uplift of domestic jet fuel to the GST framework with full input tax credit allowed
    • Removing fuel throughput fees in line with global best practice
    • Creating competition with common-use open-access infrastructure, and
    • Regulating transparency in pricing of jet fuel
    • Reducing excise duty on fuel

Source: IATA / September 2018

Barcelona Air Route Development Committee

promotes Barcelona Airport intercontinental flight

SELECTION*
ARE YOU AN AIRLINE REPRESENTATIVE?
PRIVACY POLICY: The information contained in this message and/or attachment(s), sent from GESTIO I PROMOCIO AEROPORTUARIA (GPA), is confidential/privileged and is intended to be read only by the person(s) to whom it is addressed. We remind you that your data have been incorporated into the processing system of GPA and that as long as the regulatory requirements are met, you may exercise your rights of access, rectification, limitation of processing, suppression (“right to be forgotten”), portability, opposition, and revocation, under the terms established by the current and applicable regulations on data protection, by sending your request to the postal address DIAGONAL AV,452, 08006, BARCELONA (SPAIN)or by e-mail to Rgpd@gpa.aero .If you read this message and are not the intended recipient, or have received this communication in error, please be advised that any disclosure, distribution, or reproduction of this communication is strictly prohibited and may be unlawful, and we request that you notify us immediately and return the original message to us at the above address. Thank you.
ACCEPT*

THANKS

Thank you for contacting Barcelona Links. We confirm that we have received your request correctly. We will answer you as soon as possible.

Legal notice
In the following Institutions
SELECCIONI**
ETS UN REPRESENTANT DE LA LINEA AÈRIA?
POLÍTICA DE PRIVADESA: La informació continguda en aquest missatge i/o arxiu(s) adjunt(s), enviada des de GESTIO I PROMOCIO AEROPORTUÀRIA (GPA), és confidencial/privilegiada i està destinada a ser llegida només per la(s) persona(s) a la(s) que va dirigida. Li recordem que les seves dades han estat incorporats en el sistema de tractament de GPA i que sempre que es compleixin els requisits exigits per la normativa, vostè podrà exercir els seus drets d’accés, rectificació, limitació de tractament, supressió (“dret a l’oblit”), portabilitat, oposició i revocació, en els termes que estableix la normativa vigent i aplicable en matèria de protecció de dades, dirigint la seva petició a l’adreça postal AVDA DIAGONAL,452, 08006, BARCELONA o bé a través de correu electrònic Rgpd@gpa.aero . Si vostè no és el destinatari assenyalat o ha rebut aquesta comunicació per error, l’informem que està totalment prohibida, i pot ser il·legal, qualsevol divulgació, distribució o reproducció d’aquesta comunicació, i li preguem que ens ho notifiqui immediatament i ens retorni el missatge original a l’adreça a dalt esmentada. Gràcies.
ACCEPTAR*
SELECCIONE*
¿ERES UN REPRESENTANTE DE LA LINEA AÉREA?
POLÍTICA DE PRIVACIDAD: La información contenida en este mensaje y/o archivo(s) adjunto(s), enviada desde GESTIO I PROMOCIO AEROPORTUARIA (GPA), es confidencial/privilegiada y está destinada a ser leída sólo por la(s) persona(s) a la(s) que va dirigida. Le recordamos que sus datos han sido incorporados en el sistema de tratamiento de GPA y que siempre y cuando se cumplan los requisitos exigidos por la normativa, usted podrá ejercer sus derechos de acceso, rectificación, limitación de tratamiento, supresión (“derecho al olvido”), portabilidad, oposición y revocación, en los términos que establece la normativa vigente y aplicable en materia de protección de datos, dirigiendo su petición a la dirección postal AVDA DIAGONAL,452, 08006, BARCELONA o bien a través de correo electrónico RGPD@gpa.aero . Si usted no es el destinatario señalado o ha recibido la comunicación por error, le informamos que está totalmente prohibida, y puede ser ilegal, cualquier divulgación, distribución o reproducción de esta comunicación, y le rogamos que nos lo notifique inmediatamente y nos devuelva el mensaje original a la dirección arriba mencionada. Gracias.
ACEPTAR*