IATA RE­PORT LOOKS AT IN­DIA

Over 157 mil­lion peo­ple trav­elled to/from/or within In­dia in 2017 and IATA ex­pects that num­ber to reach 520 mil­lion by 2037

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Over 157 mil­lion peo­ple trav­elled to/ from/or within In­dia in 2017

The In­ter­na­tional Air Trans­port As­so­ci­a­tion (IATA) re­cently re­leased a re­port de­tail­ing the for­ward progress of In­dia’s avi­a­tion mar­ket. Ac­cord­ing to IATA’s re­port, the num­ber of peo­ple trav­el­ling to/from/or within In­dia has in­creased sub­stan­tially over the last eight years.

In 2010, 79 mil­lion peo­ple were re­ported to have trav­elled to/from/ or within the coun­try. By 2017, this fig­ure reached 158 mil­lion and IATA projects the num­bers will reach 520 mil­lion by 2037.

To date, the in­dus­try sup­ports up to 7.5 mil­lion jobs in In­dia, which bro­ken down sur­mounts to 390,000 in­dus­try jobs, 570,000 in the value chain, along with 6.2 mil­lion in the tourism sec­tor. In­dia’s avi­a­tion sec­tor con­trib­utes roughly $30bn an­nu­ally to the coun­try’s GDP.

Cur­rently the third largest do­mes­tic mar­ket be­hind the US and China, In­dia’s do­mes­tic load fac­tors reached an im­pres­sive high of 90% in Fe­bru­ary 2018, bol­stered likely by a 70% drop in the av­er­age do­mes­tic fares since 2005. Ad­di­tion­ally, a to­tal of 90 mil­lion do­mes­tic pas­sen­ger trips were recorded in 2017, equat­ing to 7.3% of In­dia’s pop­u­la­tion.

In terms of its in­ter­na­tional mar­ket, In­dia to­day links di­rectly to 304 global des­ti­na­tions, up from 230 re­ported in 2008. IATA also high­lighted that while the coun­try’s in­ter­na­tional mar­ket is grow­ing more slowly than do­mes­tic, the seg­ment gar­nered roughly 60 mil- lion global jour­neys to and from In­dia in 2017. Roughly 41% of the na­tion’s di­rect in­ter­na­tional con­nec­tiv­ity is to the Mid­dle East.

IATA’s re­port also took note of fac­tors crit­i­cal to the fu­ture growth of the coun­try’s avi­a­tion sec­tor. On the one hand, In­dia’s stand­ing within the World Bank’s Ease of Do­ing Busi­ness sur­vey has risen from 132 to 100, a fig­ure that the coun­try will need to con­tinue work­ing on to en­sure sus­tain­able growth for avi­a­tion.

Sim­i­larly, the coun­try has im­proved its stand­ing in the 2017 World Eco­nomic Fo­rum’s Travel and Tourism Com­pet­i­tive­ness In­dex to reach 40th place. Con­tin­ued im­prove­ments in air­port in­fras­truc­ture den­sity, tourism and visa poli­cies will help In­dia climb even fur­ther on the rank­ings.

“Meet­ing the sig­nif­i­cant growth po­ten­tial of In­dian avi­a­tion will also cre­ate chal­lenges – for the air­lines, its in­dus­try part­ners and pol­icy-mak­ers. For ex­am­ple, this will re­quire the right type of in­fras­truc­ture at the right time and in the right place,” com­mented Brian Pearce, IATA’s Chief Econ­o­mist and the re­port’s au­thor.

“Equally, the broader busi­ness and pol­icy en­vi­ron­ment should not place hur­dles which in­hibit growth and re­duce the level of ben­e­fits that avi­a­tion can de­liver to the na­tion.

“The in­dus­try, its sup­ply chain part­ners and the govern­ment and pol­i­cy­mak­ers have a clear man­date to work in col­lab­o­ra­tion to­wards the com­mon goal of en­sur­ing that avi­a­tion’s eco­nomic and so­cial ben­e­fits are ful­filled.”

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