Home » Business » India's commercial aviation sector to grow 9%
A new report by aviation intelligence firm OAG and UBM Aviation, reveals a striking contrast of opportunities and challenges in two of the world's fastest-growing travel markets.
The OAG India and Middle East Aviation Market Analysis bases its projections on the consistently growing demand for air travel, a surge in aircraft orders, steadily increasing inbound tourism, spectacular airport development plans and the enthusiasm of investors for the sector.
"However, both markets face immense challenges in meeting the expected future growth in passengers and aircraft operations, which require massive expansion of infrastructure and high-performing aviation systems," the report said.
In India, the government's open-sky policy has enticed many foreign aviation leaders to enter the market, spurring rapid industry expansion boosted by the growing population and increased demand for international travel and trade, as well as an increasing visiting friends and relatives) market, the report said.
However, airlines must contend with insufficient infrastructure and challenging political bureaucracy in India.
"It is estimated that in the next decade, the Indian market will absorb approximately 316 commercial jets and need three times the number of airports that it has today, whilst at the same time, the country doesn't have enough skilled labour to maintain or to fly the aircraft," the report, which was released here, said.
"Additionally, intense foreign competition prevents domestic carriers from international expansion, deeply affecting balance sheets," it said.
Mario Hardy, vice president -- Asia Pacific, UBM Aviation, said: "India is amongst the world's
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