Growth of Aviation Sector in India in Next 5 Years
Worldwide air travel has grown at a historically brisk pace. Many factors paved the way for immense growth in the aviation sector. Low airfares, the growth of tourism and travel, higher living standards with a growing middle class in large emerging markets, improved safety margins are the driving strengths in the demand for air travel.
India is considered as the fastest growing aviation market in the world with 100 million domestic markets and becomes the third largest domestic market in the world. In the year of 2018 domestic market in the country could grow up to 130 million from 100 million by marking a 25% growth while international market could grow up to 12%. The emergence of the middle class made a significant effect for the increment of air travel usage. The middle class in the country has grown to 135 million in 2016 from 80 million which was the figure in 2000.India has maintained a consistent upward curve for the GDP and it’s estimated to escalate the GDP up to a much higher value in the upcoming 5 years. At the end of 2021, GDP will rise to 8.122% from the current value, 7.608%. These figures show a quite promising picture for the aviation sector within the country.
Low-cost carriers are the main engines of growth in the sector and they have made remarkable achievements within past years. Contribution from the LCCs for the domestic market share will rise nearly to 75% and they will operate the majority of narrowbodies. Within upcoming years LCCs will acquire few widebodies for the international market to operate long-haul flights. Indigo, Jet Airways, SpiceJet, and GoAir will be the largest LCC contributors who operate international flights. But their contribution for the international market is expected to keep low to a value of 10-15% from the total capacity. Indigo will be predominant within the country for the domestic market by surpassing 50% margin and contributing for exactly half of the domestic share. This pace of growth by Indigo creates a compulsion for other rival airlines in the country to scale up their operations.
Infrastructure constraints for the developing field were the biggest problem within the country and this problem will remain as a hurdle for upcoming years as well. This should be addressed by the authorities in a well-organized manner to utilize current facilities while constructing new infrastructures like runways and airport terminals within busy airports. Authorities should come with a strategic plan at least for the 40 largest airports in the country. Introducing sophisticated infrastructures will attract more foreign direct investments which will boost up the economy and hence the aviation industry.
With all of these developments projects, it’s utmost important to pay attention towards the means of acquiring resource personnel like Pilots, Aircraft Engineers, Flight Attendants, Air Traffic Controllers and other ground staff. The average age of a pilot in India is 45.8 years and they have limited time to serve. Hence pilot training should be done in an effective way to train native pilots. If not India will have to take the service of expat pilots creating an unfavorable capital flow out of the country.
When analyzing the stats and future plans it is quite reasonable to expect a promising future for aviation in India. The authorities should contrive to address above mentioned key problems to maintain the consistent growth for future as well.