Indian aviation sector to carry 180 million passengers by 2020

Indian domestic air traffic is orecast to reach 160-180 million passengers per year, while international traffic will exceed 80 million, predicts a new report from the Centre for Asia Pacific Aviation (CAPA) in association with SITA.

Today less than 2 per cent of Indians fly in any given year.

In forecasting substantial growth over the next 10 years, the CAPA - SITA report, White Paper on Information Technology in Indian Aviation, notes that India's domestic air travel market is currently just 20 per cent of that of China. In order to meet predicted growth over the next 10 years, airlines will need to invest $120 billion in new aircraft and a further $20 billon in the airport sector.

Kapil Kaul, CAPA CEO, South Asia said, "In terms of the drivers for investment in IT, the survey element of the report found that the airport sector is primarily concerned with compliance and efficiency measures, aimed at reducing costs.

Acording to Kaul, "There is as yet lesser emphasis on deploying technology as a point of differentiation or to enhance the customer experience with a view to generating incremental revenue. However, the feedback indicates that mobile technologies, self-service kiosks and biometrics will be key areas of investment in future for airports. We also found that airlines appear to be further advanced than airports in their embrace of technology as a strategic tool rather than a support mechanism."

Airlines believe that self-service options are the best way to enhance customer convenience, by deploying products such as kiosks for lost baggage reporting, flight disruption management, flight transfers, bag drop and automated boarding gates.