The government has envisaged an investment of $12.1 billion ( Rs. 66,550 crore) in the airport sector during the Twelfth Five Year Plan period, of which $9.3 billion ( Rs. 51,150 crore) is expected to come from the private sector, informed the Minister for Civil Aviation Ajit Singh at India Aviation 2014 launch event

The mood at the India Aviation 2014 launch function held at New Delhi on May 3, appeared buoyant and echoed that the fourth edition of India Aviation to be held from March 12-16, 2014, at the Begumpet Airport, Hyderabad, will be grand or at least larger than the previous three editions of the civil aviation fair. The show will set the stage for advanced networking and create an ecosystem for one and all in the global aviation industry, including airport operators, manufacturers, software developers, etc.

Launching the event, the Minister for Civil Aviation, Ajit Singh said that the aviation sector in India is fast changing and is poised for breaking boundaries and scaling new heights. “With ever-increasing scope for participation by private sector, we expect significant developments in the years ahead. The government has envisaged an investment of $12.1 billion in the airport sector during the Twelfth Five Year Plan period, of which $9.3 billion is expected to come from the private sector.”

In her welcome address, Naina Lal Kidwai, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), thanked the Civil Aviation Minister for the important policy decisions taken by the Ministry such as allowing 49 per cent foreign direct investment, abolishing the Aircraft Acquisition Council, improving regional connectivity, etc. She said the policy moves have instilled enthusiasm in the sector. Airlines, Kidwai said, are likely to add about 370 aircraft worth $27.5 billion ( Rs. 1,51,250 crore) to their fleet by year 2017; and the commercial fleet is expected to reach 1000 by 2020, from 400 now. Hence to achieve such growth, associated challenges like airport congestion, aviation turbine fuel (ATF) price, shortage of manpower, high taxation, high airport charges, development of low cost airports without compromising on safety, etc, needs to be addressed.

The Civil Aviation Minister held that the government has taken several initiatives in the regulatory framework for propelling the aviation sector to new heights despite the challenges faced due to rising fuel costs, fierce competition and infrastructure bottlenecks. The decision to abolish the Aircraft Acquisition Council, he said, will help airlines to plan better for future induction of aircraft and also maintain timelines of acquisition. Both scheduled and non-scheduled airlines, flying institutes and business aviation users will benefit from it. Singh further said that flexi use of airspace by civil and military users will help in reduction of carbon emissions by about seven million kg per annum by direct routing between seven major city pairs.

A series of policy reform decisions are under consideration by the Ministry for better functioning of the sector. This includes declaring ATF a notified good, rationalisation of bilateral air service agreements, traffic entitlements on international routes to Indian carriers, setting up of the Civil Aviation Authority, Civil Aviation Security Force, Air Navigation Services Corporation, etc. The Minister invited all to participate in India Aviation 2014 and contribute in the enhancement of air connectivity in the region.

The Director General of Civil Aviation, Arun Mishra, who has been involved in the planning and designing of the show since its inception in 2008, gave three suggestions to the Ministry. “A show should not be only about buying and selling, but getting everyone in the aviation value chain under a common platform,” he said, and added that we need to identify players for that. Secondly, he said, there is the need to develop manpower and hence set up training institutes. Last but not the least, he suggested that there are many countries which are yet to be a part of the show and efforts should be made to get them to India Aviation 2014.

V.P. Agrawal, Chairman of the Airports Authority of India (AAI), highlighted the need for smaller aircraft, as he said that the next civil aviation growth story after development of Greenfield airports would be connecting to Tier-III cities. Giving the examples of Farnborough and Paris Air Shows, Anil Srivastava, Joint Secretary, Ministry of Civil Aviation, said in his concluding remarks that India Aviation has a long way to go. But he opined that in times to come, India Aviation will certainly go a long way like the automobile show in India which has become a major event today.

Air India’s Boeing 787 Dreamliners grounded since mid-January 2013 will resume domestic flights by the middle of this month. This was informed by Singh on the sidelines of the launch ceremony. He further informed that the US airplane manufacturer, Boeing, has agreed to compensate Air India for the loss incurred by Air India because of the grounding of the Dreamliner passenger jets. The Minister, however, didn’t disclose the compensation amount and stated that details are being worked out.