Iata boss outlines India's aviation challenges

Iata boss outlines India's aviation challenges

Strict regulation, taxes and costly infrastructure have been identified by Iata as “immense challenges” that India needs to overcome to achieve economic growth from aviation.

The number of travellers to, from and within India will reach almost 280 million a year by 2029 as it becomes the world’s third-largest aviation market.

But Iata director general and chief executive, Tony Tyler, highlighted key areas which are holding back the sector.

Speaking in Delhi, he said: "Already aviation and aviation-related tourism support seven million Indian jobs and $23 billion of India’s GDP. The healthy growth of the sector has the potential to expand these benefits tremendously.

“But there are immense challenges which must be overcome - as seen in the sector’s financial performance.

“While demand growth is robust and some airlines are generating profit, sector-wide losses for India are still expected to exceed $1 billion this year.

“Onerous regulation and processes, debilitating taxes and expensive infrastructure are holding back the industry’s ability to deliver greater economic benefits to India.”

Tyler listed several examples where Indian regulation is out-of-step with global standards and best practices.

"India needs smarter regulation,” he said “This essentially means taking a business-like approach to regulation using common-sense and proven principles.

“These include targeting regulation to address real issues, using global standards where they exist, satisfying a rigorous cost benefit analysis and consultation with industry.

“If we can work together to build regulations that meet the public interest, are consistent with global standards and which can be implemented efficiently then we are all winners. And we will avoid the angst involved in unwinding mistakes.”

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