CONFERENCE REPORT: FDI IN AVIATION
During the Fifth International Conference on Civil Aviation, problems plaguing the Indian civil aviation industry were discussed threadbare and actions required on the part of the government were clearly enunciated
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Commerce and Industry of India (ASSOCHAM) hosted its Fifth International Conference on Civil Aviation on September 21, 2012, at Hotel ITC Maurya, New Delhi. Ajit Singh, the Union Minister for Civil Aviation, was the chief guest at the conference. SP Guide Publications was the official media partner.
Welcoming the chief guest and the delegates at the conference, Rajkumar Dhoot, MP and President, ASSOCHAM, said that the Indian civil aviation industry is passing through challenging times. He complimented the Ministry of Civil Aviation for the recently announced policy of foreign direct investment (FDI) by airlines abroad into Indian carriers and described the step as “courageous, timely and meaningful”. On the issue of pricing of aviation turbine fuel (ATF), he said that foreign airlines are inclined to avoid refuelling in India due to high prices. He felt that the government should create an environment that is competitive and attractive to private investment, thereby facilitating public-private partnership. Also, the regulatory environment should nurture the growth of the industry. He hoped that the conference would provide a platform for all stakeholders to deliberate on the factors that have been impeding the growth of the Indian civil aviation industry.
K. Narayana Rao, Chairman, ASSOCHAM Civil Aviation Committee, said that the civil aviation industry, which contributed to GDP growth, is still in its nascent stages. This implies immense opportunities for growth both in the passenger and cargo segments. India also has tremendous potential to be an aviation hub and that there are lucrative opportunities in other aviation industry related activities such as maintenance repair and overhaul (MRO), general aviation, aerospace industry and training. The problems that need to be addressed urgently are reduction in cost of ATF, grant of infrastructure status to the civil aviation industry, lowering of taxes, enhancement of efficiency standards to meet the international benchmarks and facilitation of international traffic through Indian airports.
The Director at KPMG (India), Amber Dubey carried out an incisive analysis of the factors that have been impinging on the Indian