Sustaining the aviation boom is Patel?s real challenge

The real challenge before the Indian aviation industry today is to be able to sustain itself, civil aviation minister Praful Patel said, indicating the huge losses incurred by airlines owing to rising input costs, including high ATF prices.

Written by Corporate Bureau

December 2, 2007 00:00 IST

?I?m not really worried about infrastructure issues like airport congestion. These will get resolved over the next few years. And the real growth will begin when the infrastructure is in place,? Patel said. Domestic aviation is growing at a CAGR of 30-35%, while international business is seeing a growth of 20%, he added.

Complementing this growth is the travel industry, where a restructuring is visible, with a new breed of travel companies that are displaying more dynamism and professionalism. Aviation sector is also seeing better services and lower fares. ?In 2004, there were only 19 flights to the UK from India in a week. Today, that figure is 200,? Patel said. However, less of 2% of Indians still fly, and that remains a challenge, he added.

This article was first uploaded on December two, twenty seven, at zero minutes past twelve in the am.