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Apr 2007

Aviation industry to grow at 25 per cent rate: Praful Patel

     New Delhi: Union Civil Aviation Minister Praful Patel said here today that aviation industry is expected to grow at 25 percent per annum. "India for the next 10 years should enjoy at least a 25 percent annual compounded growth which would be probably the highest or close to highest," Patel said while inaugurating a US- India Aviation Partnership Summit. "I wouldn't be wrong if the DGCA's (Directorate General of Civil Aviation) figures are true and I am sure they are. We are closing to 50 percent growth in the domestic sector and about 20 percent in international sector. And I am sure that this rate of growth can be sustained," he added.

     Country's aviation industry, which is witnessing a boom, is expecting a rise of about 20 percent in the number of passengers travelling by air in the next five years. He called for support from US's Federal Aviation Administration (FAA) to achieve the target. "If India's aviation is to grow from what it is today, to a very high level what are talking in years to come, I think India just cannot rest on whatever expertise it has today or whatever practices we follow today. We will have to integrate our model, our best practices in conformity to say FAA or any other major civil aviation power," Patel said. However, Patel ruled out any immediate step to allow foreign players from making headway into the industry. Patel said proposals have been mooted to enhance the 49 percent of foreign investment in areas like helicopters, seaplanes and non-scheduled operations. The United States on the other hand had cautioned the Indian authorities on the challenges it would face with the growth of the industry. "In some ways, Minister Patel and other aviation leaders in India face an even greater challenge than we do. Because while predictions call for U.S. passenger traffic to grow a hefty three percent a year between now and 2020, and that's going to be a big challenge for us, that dwarfs in comparison to the kind of numbers that Minister Patel was talking about," Administrator of the Federal Aviation Administration Marion. C. Blakey said.
-Apr 23, 2007