Passenger growth is estimated to grow three-fold by 20137, by which time 500 million people are expected to fly to, from or within India. Currently aviation in India supports 7.5 million jobs and 30 billion Rupees (US$420 million) of GDP (1.5% of the economy). Alexandre de Juniac, the International Air Transport Association’s (IATA) Director General and CEO called on the government of India to maximize the potential contribution of aviation to India’s development by addressing infrastructure constraints which currently limit growth, while government policies are imposing excessive costs on aviation. These remarks came in an opening address to the International Aviation Summit in Delhi, co-hosted by the Indian Ministry of Civil Aviation (MoCA), the Airports Authority India (AAI) and IATA.
In summary of recommendations regarding infrastructure:
Develop a comprehensive and strategic masterplan for India’s airports.
Remove all obstacles to successfully open Navi Mumbai as quickly as possible.
Modernize airport processes using technology in line with global standards.
Flexibly use military airspace to expand airspace capacity for civil operations.
In summary of recommendations regarding regulation:
Zero-rate GST for international travel in line with ICAO principles and international obligations.
Create a more competitive market for jet fuel by:
Adding domestic uplift of domestic jet fuel to the GST framework with full input tax credit allowed
Removing fuel throughput fees in line with global best practice
Creating competition with common-use open-access infrastructure, and
Regulating transparency in pricing of jet fuel
Reducing excise duty on fuel
In relation to collaboration, Mr. de Juniac said: “There are many priorities in fostering the economic and social development of India. Fundamental issues of eradicating poverty, ensuring quality education, providing health care and safe drinking water are massively important agenda items. Creating a better environment for aviation to do business can and will progress the nuts and bolts of India’s development day to day. Safe, secure and sustainable air links make our world a better place. That is why I call aviation the business of freedom. And the government and industry share a privileged responsibility to work together for its success,” said de Juniac.
