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Civil aviation in India today is a major contributor to the national economy. Apart from providing speedy and cost-effective connectivity in a large country like ours, the aviation sector has also greatly facilitated the development of domestic and international tourism, business, commerce and trade. Air India and Indian Airlines are recognised as the symbols of national pride both within and outside the country. Ninety-five percent tourists arrive in India by air. Airports facilitate the growth of high-value and perishable trade. Exports and imports in India by air are to the tune of forty per cent. The day is not far when the remote areas of the country will be connected by air.
The aviation industry in India has overcome various setbacks it faced during the last few years following the global recession since 2000-01, terrorist attacks in the USA on September 11, 2001, the Gulf War and the SARS scare. In spite of these setbacks, Indian airports handled 4.87 crore passengers in 2003-04, 1.66 crore international and 3.20 crore domestic, compared to 4.37 crore passengers in 2002-03 (1.48 crore international and 2.89 crore domestic). Indian airports handled 10.68 lakh tonnes of cargo (6.93 lakh tonnes of international and 3.75 lakh tonnes of domestic) in 2003-04 compared to 9.79 lakh tonnes (6.46 lakh tonnes of international and 3.33 lakh tonnes of domestic). During 2002-03 the overall passenger traffic increased by 17.25 per cent. The cargo traffic was also up by 22 per cent. The traffic and cargo growth between 2002-03 and 2006-07 is forecast between 5-7.5 per cent per annum for domestic and international traffic.
Initiatives
Gradual liberalization in international air services is necessary for accelerating economic growth and to fulfil the increasing demand for travel on international routes. This is the global trend and most countries have given up their protectionist policies in air services, to speed up the growth of the aviation sector. Greater air connectivity helps the growth of the national economy through competitive advantages in tourism, business, trade and commerce - each requiring enhanced capacity and connectivity both in terms of quantity and quality. Passengers also demand wider choices, increased capacities, daily frequencies and cheaper fares.
Global experience shows that enhanced air connectivity largely contributes to economic growth. Many countries even have an open sky policy, recognizing the benefits for the national economy as well as consumers. The growth of major aviation hubs like Singapore in the East and Dubai in West Asia have proved how civil aviation can be a boon in revolutionizing the economy.
Recognizing this global trend as well as the benefits accruing to the Indian economy by enhanced international connectivity, the Ministry of Civil Aviation has taken some major initiatives in the field of international air services and bilaterals.
To utilize our entitlements and provide better connectivity on international routes, private scheduled carriers of India with at least five years of operations in domestic sector have been permitted to operate to all overseas destinations except the Gulf countries. With this decision, the utilization of traffic rights by India is likely to improve gradually. The inter se allocation of entitlements amongst the eligible airlines will be in the ratio of Available Seats Per Kilometre (ASKM) deployed by them on domestic routes over the last five years in case the available entitlements fall short of their projected requirements. Due consideration is to be given to the operational plans of Air India and Indian Airlines while allotting entitlements to other domestic carriers.
Special facilities have been offered to the ASEAN countries in keeping with their economic and strategic interests. Under this initiative, airlines of each of the 10 ASEAN countries have been allowed to operate daily services to New Delhi, Mumbai, Chennai and Kolkata subject to equal reciprocal rights granted to the Indian side and on the existing terms of the commercial agreement with our national carriers. They have also been allowed unlimited access to 18 other tourist gateways in India on a reciprocal basis. In the case of Sri Lanka, in addition to the terms of the offer to ASEAN countries, a daily flight was also offered to Bangalore and Hyderabad on a reciprocal basis.
The designated airlines of Austria, Finland, Republic of Korea, Maldives, Armenia and Yemen have been offered additional capacity, as requested by the respective governments, subject to reciprocal rights to the Indian carriers.
The deadlock in civil aviation between India and UK was resolved following successful negotiations in London. Consequently, entitlements for operation of air services between India and UK – which is the biggest market for Air India – will be more than doubled within the next one year easing the existing capacity constraints. Airlines of either country will be entitled to operate 40 services per week each by the year-end. UK carriers have also been granted access to Bangalore, Hyderabad and Cochin besides the four metro destinations. The Indian carriers would be able to fly to Glasgow, Edinburgh and Bristol in addition to London, Manchester and Birmingham.
Entitlements for operations on the India–Australia sector will also be enhanced for both sides significantly from the existing 2100 seats per week to 6500 seats per week over the next two years. Australian carriers will also get access to Chennai, Bangalore and Hyderabad as additional points over this period. (PIB Features)
**Union Minister, Civil Aviation
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