Indian Aviation Will Be A Driver For Growth - Bisignani

ET&T Staff - Mumbai

Indian aviation will be a driver for the global aviation industry, according to Giovani Bisignani, director general of International Air Transport Association (IATA). With a majority of US airlines having filed for bankruptcy and European airlines also facing market saturation, it is Asia that will drive future industry growth, he added.

Speaking at a CII session, he said that the expansion rate of the Indian aviation sector is the fastest in the world. But, he said, for India to compete with countries like China, it will need to upgrade its infrastructure and make necessary policy changes. Stressing on the importance of this sector, Bisignani said that globally, airlines are a US$ 400 billion industry, generating US$ 1.3 trillion in economic output, and not to be taken lightly. He outlined five priorities for the sector - operational safety, cost effectiveness, freedom to do business, implementation of technology and upgraded infrastructure.

Taxation, he said, was another area of IATA concern, not only in India but on a global scale. He said that though the Indian government had abolished the fuel uplift levy in 2002, the US$ 36 million collected at the same time had not been returned to the airlines.

Complete e-ticketing by December 2007, and introduction of paperless freight were the other IATA priorities. The director general said that US$ 3 billion could be saved once e-ticketing is introduced. However, India is way behind with just five per cent e-ticketing as compared to 33 per cent on a global average.