India was 8220;missing out8221; on the potential of civil aviation as a key economic contributor as its policies were not supportive of competitiveness in the sector and stunted its growth,global airlines8217; body IATA said today.
8220;India is one market that is missing out on aviation8217;s potential as a result of a policy framework that does not support aviation8217;s competitiveness,8221; International Air Transport Association IATA chief Tony Tyler said in his address to the Singapore Airshow Aviation Leadership Summit. Giving examples,he said high taxes,lack of capacity in Mumbai and increasing infrastructure costs in Delhi 8220;are holding back Indian aviation8217;s potential8221;.
Maintaining that Singapore government supported aviation as a strategic industry and the sector contributed 119,000 quality jobs and 5.4 per cent of GDP,Tyler said 8220;not all governments have the same positive approach.8221;
8220;The stunted growth of Indian aviation comes with an economic cost. India8217;s population is about 240 times the size of Singapore8217;s. But the number of aviation jobs is just about 14 times larger at 1.7 million. And the economic contribution of aviation is still only 0.5 per cent of the Indian economy,8221; he was quoted as saying in a statement by IATA.
8220;Even considering the differential in GDP per capita between Singapore and India,these numbers tell us that there is tremendous unrealised potential in India,8221; the IATA Director General and CEO said.
8220;When relationship between industry and government works,the results are brilliant. Policies that support aviation8217;s competitiveness deliver wide-ranging benefits across economies by connecting business to markets,8221; Tyler said.
Quoting figures,he said Asia was driving growth and 8220;shifting aviation8217;s centre of gravity eastward.8221;
In 2010,about 33 per cent of passengers travelled on to,from or within Asia-Pacific,while it was 31 for North America and Europe. By 2015,IATA8217;s passenger forecast anticipates that Asia-Pacific will represent 37 per cent,while traffic associated with Europe and North America will fall to 29 per cent.
Over the same period,total passengers worldwide are expected to rise to 3.55 billion. Of the 877 million additional passengers that will be generated,212 million are expected to fly on routes associated with China,Tyler said.
In terms of propensity to travel,Asia has 8220;tremendous potential for future growth8221;. The average person in the US travels by air 1.8 times per year,while in Germany the equivalent is one trip annually. For China the average is 0.2 air trips per person per year and for India it is just 0.1.
On the controversial European Union decision to impose a carbon tax on all flights on its airspace,he said the non-European governments saw 8220;this extra-territorial tax collection as an attack on their sovereignty. They are taking action.8221;
He said aviation 8220;can ill afford to be caught in an escalating political or trade conflict over the EU Emissions Trading Scheme. The International Civil Aviation Organisation ICAO is the only way forward.8221;