Aviation industry upbeat despite troubles
26 March 2012
Even as the Vijay Mallya-led Kingfisher Airlines struggles to come out with a flight plan to stay afloat, Jet Airways could be faced with its own tax problems, according to Amit Mitra in the Hindu Business Line. Mitra points out that five out of the six Indian carriers have reported losses over the last three quarters.
However, according to the chieftains of the global aviation industry it was just a passing phase and happy days would be back again for domestic aviation along with sustainable growth path.
According to Mitra, the five-day 'India Aviation 2012' event that recently concluded in Hyderabad clearly sent out that message in hopes of attracting global players in the airlines, airport and engine manufacturing sectors.
To be fair, the India aviation sector did do quite well during the Eleventh Plan period, emerging as the ninth largest civil aviation market in 2011.
In addition to the fact that passenger throughput increased from 73 million in 2005-06 to about 150 million last year, the period also saw the completion of four international airports.
The investment made by private airport operators totaled around Rs30,000 crore in the last five years, including greenfield airports in Hyderabad and Bangalore and modernisation of Delhi and Mumbai airports. To add to this by 2011, five Indian carriers were operating on international routes and India had bilateral agreements with 104 countries.