India’s civil aviation market, considered one of the fastest growing in the world, holds immense potential for transformation. The Director General of the International Air Transport Association (IATA), Willie Walsh expressed confidence that India would ease bilateral flying rights, especially as Indian carriers like Air India and Indigo broadened their fleets with wide-body aircraft.
Walsh underlined the benefits of such agreements, highlighting that an increase in the rights will enable Indian airlines to offer more direct international connections. ‘’It will enhance If you look at the wide wide-body aircraft orders Air India and Indigo have, they are seeking more rights, and reciprocal rights will be the key,’’ Walsh stated to PTI during the IATA Global Media Daya in Geneva.
Potential in the Civil Aviation Market
The Indian government is carefully advancing its planning to make the country a global aviation hub but on the other hand, it has been very selective in improving bilateral flying rights. Civil Aviation Minister K Rammohan Naidu mentioned that such a decision goal is to prioritize the growth of Indian carriers and aviation hubs.
The current bilateral quotas have been fully used as foreign airlines, especially Gulf-based carriers have asked to increase the access. Walsh feels that despite these limitations, Indian airlines have a major opportunity to make the most of the profit from their market potential. He believes that this will transform both the Indian economy as well the aviation sector.
Challenges ahead
Walsh also stated the challenges of handling the rapid growth of the network. Making sure that air traffic and airport infrastructure speed up as per this expansion will be critical. According to Walsh, India’s commitment to building new airports and investing in infrastructure are the right steps taken.
Regarding the concern about the possibility of a duopoly in the Indian market, Walsh commented that there is a sufficient chance for competition and growth, especially as the new airports are being developed. ‘’I wouldn’t term it a duopoly. With the evolving market dynamics, India’s aviation sector is set for thrilling growth,’’ he remarked.On airport charges, Walsh noted positive developments in economic regulations for airports and asserted that ownership will not decide the success or failure of an airport.
(With inputs from PTI)