Aviation Current Affairs

India To Become Third Largest Aviation Market : IATA

India will be among the top three aviation market by 2024 according to International Air Transport Association (IATA) in its 20- year air passenger forecast report. India is currently at seventh position in Global Aviation market.

Key Highlights Of Report

  • The number of air passengers around the world will double to 8.2 billion in 2037.
  • China will displace the US as the world’s largest aviation market in the mid- 2020. India will take  the third place after US around 2024  surpassing UK.
  • By 2037, India is expected to add 414 million passengers to its existing 572 million passengers.
  • Home passenger traffic in India is growing at around 18.28 per cent to reach 243 million  in 2018-19 and will grow to 293 million in 2020.
  • When it comes to International traffic, it grew by 10.43 per cent to reach 65 million in 2018 and will grow to 76 million in 2020.
  • The biggest growth in terms of air traffic will come from Asia- Pacific region with more than half the number of total new passengers in next 20 years.
  • The Asia-Pacific region is expected to see the fastest growth at the rate of 4.8%, followed by Africa (4.6%) and West Asia (4.4%).

International Aviation Traffic Association (IATA): It is the trade association for the world’s airlines formed in 1945 and headquartered in Montreal, Canada. It represents around 280 airlines or 82% of total air traffic. It helps to formulate aviation sector policy and standards. It also provides training services in many areas of aviation.

Challenges To India Aviation Sector

The study identified several factors that can impact the future growth of Indian aviation industry:

Growth Policy

The growth policy of 6.1% annually is expected to result in a total market of 520 million Indian passengers in 2037.The protectionist and other negative policy will hold India’s growth back to 4.9% and the total market will be 400 million in 2037.

Ease of Doing Business

India is now at 100th position among 132 countries on World Bank’s Ease of Doing Report. The improvement in this area will impact sustainable growth of aviation sector.

Travel and Tourism Competitiveness

India has also risen from 52nd place to 40th place in 2017 World Economic Forum’s Travel and Tourism Competitiveness Index. The improvements in this area as well as in airport infrastructure will further enhance India’s aviation market.

Month: Categories: Business, Economy & Banking Current Affairs

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Indian, French companies ink pacts worth 13 billion euros

Indian and French companies have exchanged 19 contracts and agreements worth over 13 billion euros in sectors including new and renewable energy, smart grid, nuclear energy, aviation, cement, telecom among others. The agreements were formalised at Indo-French Economic Partnership (IFEP) signing ceremony held in New Delhi in the context of French President Emmanuel Macron’s official state visit to India.

Key Facts

Aviation Sector: The biggest deals signed in terms of value were from civil aviation sector. Low-cost carrier SpiceJet signed $12.5-billion agreement with French aviation major Safran Group to supply 155 CFM LEAP-1B engines for airline’s Boeing 737 MAX aircraft, along with spare engines to support fleet.

Safran also announced its eighth facility in India at Hyderabad, Telangana with 250 employees, for production of harnesses used in civil and military aerospace applications, for both local and foreign programs.

Airports Authority of India (AAI) signed agreement with French engineering company Egis for conducting study of three airports in the country — Lucknow, Pune and Trichy.

Electric Mobility Sector: Four French companies — EdF International Networks, Citelum, G2M and Solstyce — signed an agreement to work together for developing charging infrastructure in India to support electric mobility.

Renewable energy sector: Bharat Light & Power and EDF renewed their contract pertaining to data acquisition to optimise wind and solar energy production.  General collaboration agreement was also signed between French Commission for Atomic and Alternative Energy (CEA) and Vikram Solar to increase production capacity of high performance solar cells and modules.

Cement Sector: French cement maker Vicat announced investment of Rs 1,200 crore in Karnataka to double its production capacity and investment of Rs. 510 crore in cement-grinding unit in Andhra Pradesh.

Month: Categories: Business & Economy Current Affairs 2018

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