Indian aviation sector has been marked by fast space change in the past few years. Domestic aviation area is one of the fastest growing markets since Govt. allowed private operations in this sector. The Indian Civil Aviation sector is offering major opportunities as a result of some key policy changes. From being a service that few could afford, this sector has now graduated to bring a fiercely competitive industry with the presence of a member of private & public airlines & several consumer oriented offerings. Many new airlines have made entry into this sector. There are many more proposed joint ventures, mergers & tie ups. New airports are being planned & developed. Aviation major airbus have forecast an increased demand for aircrafts in India and expects it to be the fastest growing country for air travel in the coming decade.
The investment opportunities emerging in the aviation sector are primarily in terms of construction, upgradation and operation of new & existing airports including cargo related infrastructure, outsourcing of some of the – operation & maintenance functions such as cargo handling services, commercial development, consulting opportunities for airport design & architecture, traffic studies, project supervision, setting up of non-aeronautical activities like shopping complex, Golf course, entrainment parks and aero sports etc. in the airport region. Thus aviations sector has provided excellent opportunities for joint ventures for mutual benefits. Aviation Expos/Seminars/workshops and event like Aero India 2007 in Bangalore provide an opportunity to showcase India ‘s ability to the global audience in the aviation sector.
With the advantage of global outsourcing now established in India , Indian experts have lot to offer through its capabilities. It really provides a mutually beneficial interface between the industry leaders and experts in the field of aviation business especially in the technology front where India holds good business philosophy and command a good respect. It has a niche position in the market place with excellent human resource capital. Engineering services outsourcing in the global aerospace industry is an emerging phenomenal and with competitive pressures impacting the aerospace sector, the growth rate off shoring these services to India is likely to be rapid. India is moving in the direction of becoming a global aviation software hub. The key driver to outsource in this sector is Quality & skill. India has the advantage of the cost part also At present outsourcing aero space technology development primarily revolves around engineering services involving structural & system design, tool design, mechanical & electrical design, navigation & communication etc. There is a lack of skilled resources availability in the west today & aero space engineers are quite aged. Here too India has advantage over the experts in other countries.
With the civil aviation’s Open Sky Policy and changes in the business climate with in the aviation sector in India new demand have been seen and this is more so toward shortage of pilots. Experts made a forecast that India may need upto 4000 more pilot training schools over the next 5 years and thus there is a need for more pilots in the aviation industry. Also ground support equipment manufacturing in compliance with the latest market specifications and safety supports etc. which include conveyor belts, baggage trailers, aircraft push back & touring tractors etc. will be essential need. Similarly i the training sector, the simulators are needed. These models are must which are used to get skill tests, for instructors trainers purpose to the new trainers. Many Indian aviation manufactures are providing such services with global partnerships which are also providing new job opportunities specially for marketing & sales of new aircrafts.
Most of these suppliers are working on the principle of think global and act local. Leading aviation service suppliers like Prime Chem fert Industries Pvt. Ltd. (PCI) have technical and marketing collaborations with the worlds leading corporations and promoting & distributing fleet of aircrafts from global aviation markets like Austria , Canada and have certified maintenance service facilities in those countries.
The Defence industry in India is now opened up for 100% Indian Private Sector participation with FDI permissible upto 26% (subject to licensing). Thus Defence aviation sector is also now one of the fastest growing market of the world. Defence public sector undertakings are now outsourcing significant portions of their requirements from the private sector. In tourism sector, aviation is the main backbone for its development as it provides the fastest connectivity. The boom in domestic tourism is the success story of domestic aviation industry where every year more or less new private airlines are starting operations giving air connectively to many places where earlier due to non-availability of any such air connections, inspite of having quite a good member of tourist sites could not attract tourist. Now tourism has reached to hinterland cities. With this development lot of infrastructure have been developed in those places to service the growing demand of tourists. In this respect no frill airlines, with affordable prices have opened up places like Surat , Baroda , Belgaum , Kolhapur , Jabalpur , Bhavnagar and North Eastern states. More important factor is related to opening up of some backward areas with tourism activities and there by creating employment for local people in such distant areas. It had helped in the poverty elimination through increased tourism activities.
India has made solid progress and breakthrough in infrastructure development with Foreign Direct Investment (FDI) because of the sound aviation business.
India will need nearly 1500-2000 aircrafts in the next 10 years with airtravel expected to grow at an average rate of 25% in the time period. This was mentioned by the Hon’ble Union Civil Aviation Minister, Shri Praful Patel at the opening of the Aero India Show 2007 in Banaglore. The volume of procuring these air crafts is estimated at $ 75 billion. “This year domestic travel grew by 50% . Not long ago we were execrators to the world of aviation. Today the clock has turned circle & the whole world wants to know what is happening in India he said at this aviation expo in February 2007 in Bangalore . He also talked about aviation infrastructure and modernization of Indian airports. “Also Govt. is upgrading the communications & navigations systems which will leap frog us in league with the USA and Europe ” he echoed.
The boom in air travel could get replicated in the air cargo business also. The next 10 years could see addition of 500 cargo aircraft said Mr. Patel. Lot of tax relief’s are also in pipeline like extend the exemptions of with holiding tax on aircrafts leases, reduce the base prices of aviation turbine fuel, reduction in the landing tax rate etc. Nodoubt, these are effective steps about fuelling an efficiency drive in aviation scene.
With business developments in India , there are many private Jet owners now in India . There is greater need for business jets, number of wealthy people are on the rise & this indicates that in coming decade private Jet market in India will boom once infrastructure issues are taken care. Car rentals, Charters, Private Lounge at airports special meals etc. will be needed to match the demand. Jet suppliers are opening offices to service the businessmen. Private Jets are part of business travel. Its increased trend show corporate India is now really on jet buying spree. Corporate majors like Gautam Singhania Anil Ambani, DLF, GMR, Videocon all have private Jet for business travels. The need is growing with the spread of their business net work, Mine owners in places like Bellary – a backward area is a centre for Choppers & private Jets. ONGC is a great user of choppers for use at its exploration site visits & along with this hangerage, maintenance & repair all will prosper and open up new job opportunies. Though India has longway to go before it establish in this sector to be nearer to US/UK where corporate bosses enjoy private enclosures at the airport with exclusive walk through facilities. They may take some time but India is moving at the right directions. We need to conduct periodic review to fulfill the gaps for ensuring success.
