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Air transport

For long distance travel, business travel, accessing difficult terrains and for transporting high value and perishable commodities, etc air transport is always the preferred mode of transport. In 1953, the Government of India has nationalized air transport and Indian Airlines was established to look after the Domestic air transport and Air India was established to look after International air transport. Indian Airlines and Air India were amalgamated in 2007 to form National Aviation Company of India Ltd., (NACIL), now it is renamed as Air India Limited from 2010.

Civil aviation sector

  • Operational
    • …Domestic and international services are provided by Air India and a number of private airline operators. The share of private airline operators is showing an increasing trend in the recent past.
    • …Air India Ltd was formed in 2010, as a result of amalgamation of Indian Airlines and Air India.
    • …Pawan Hans Helicopters Ltd. provides helicopter support service to petroleum sector, state and union territory Governments, public and private sector undertakings.
    • …Domestic and international traffic have grown to a very great extent. This growth is the 2nd highest in the world after China.
    • …Private sector is playing an important role in the development of both airline and airport sector. Its market share in domestic traffic during 2010 has reached 82%. Indigo has emerged as the market leader with a share of 27% followed by Jet Airways (19.4%), Air India (Domestic) with 18.2%, Spicejet (17.8%) and go Air (7%).
  • Infrastructural
    • …Airports authority of India manages 126 airports including 16 international airports and 26 civil enclaves at the defense airports.
    • Green field airports of international standards are also constructed at Hyderabad, Bangalore and Goa.
    • Green field airports with private sector participation in Navi Mumbai, Kerala, Sikkim are also being constructed.
    • An international green field airport is already in operation in Kochi
  • Regulatory/developmental
    • …The Department of Civil Aviation, Government of India is responsible for the developmental activities in airways. International services are governed by bilateral agreements.
    • …Non-availability of seats has been the biggest constraints faced by international passengers. For this efforts are on to acquire more number of aircrafts and hence ease the growing demand. Government has adopted an overall liberal approach in the matter of grant of traffic rights under bilateral agreements with many foreign countries.
    • …Domestic and international traffic grew by 21.8% and 13.6% respectively in the 10th plan. It is estimated that international and domestic passengers would increase by 16% and 20% respectively in the 11th plan.
    • …International and domestic cargo traffic is expected to grow at the rate of 12% and 10% respectively in the 11th plan.
    • …The Airport Economic Regulatory Authority (AERA) was established in 11th Five Year Plan to safeguard the interest of users & service providers at Indian airports.
    • … Civil Aviation Economic Advisory Council (CAEAC) was set up to look into the economic issues facing the civil aviation sector.

Recent developments in the airline and airport sector

  • Modernization and restructuring of the airports of metro cities have been launched through joint venture Companies
  • Approval of modernization of 35 non-metro airports and 13 other airports with world-class standards in phases
  • Liberalisation of FDI limit upto 100%
  • Acquisition of modern and technologically advanced aircraft for Air India Ltd., Air India Charters Ltd. (AICL), and Indian Airlines Ltd
  • Liberalisation of bilateral air services agreement in line with the contemporary developments in international civil aviation sector
  • Adoption of trade facilitation measures in custom procedures to facilitate a quick clearance process of air cargo
  • India has become the 9th largest civil aviation market in the world

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