Minister for Civil Aviation, Ajit Singh has said that, India would be the third largest aviation market by 2020. Addressing senior representatives of the aviation industry, Shri Ajit Singh speaking at a function in the capital on the occasion of Aviation Day informed that studies suggest, the countries airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion by 2020.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
"The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support," he said.
"Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism," the Civil Aviation Minister noted.