The aviation sector in India is undergoing a remarkable ascent. Passenger traffic is booming, airlines are expanding fleets, and the government’s ambitious regional connectivity schemes are taking shape. However, challenges remain, and the upcoming Union Budget 2024 holds the key to unlocking the sector’s full potential.
Proactive Development of Aviation Infrastructure
Over the past ten years, India’s aviation sector has witnessed remarkable expansion. The count of operational airports in the nation has surged from 74 in 2014 to 148 as of April 2023, showcasing a doubling of capacity. This growth is primarily attributed to the government’s proactive policies and initiatives, notably exemplified by the Regional Connectivity Scheme – Ude Desh ka Aam Nagrik (RCS-UDAN), launched in 2016. This initiative aims to enhance connectivity by revitalizing existing airstrips and airports, particularly focusing on unserved and underserved locations.
Additionally, the government now places a significant emphasis on sustainability within the aviation sector. A noteworthy testament to this commitment is the recent recognition bestowed upon Delhi and Mumbai airports, both achieving the prestigious Level 4+ Carbon Accreditation. This accolade underscores their dedication to minimizing carbon footprints and championing responsible aviation practices.
UDAN: Catalyzing Regional Connectivity
Central to this expansive growth of the aviation sector is the Regional Connectivity Scheme – UDAN (Ude Desh ka Aam Nagrik). Over the past six years, this scheme has undergone successful iterations, dedicated to linking underserved and unserved regions across India. By revitalizing existing airstrips and airports, UDAN strives to extend essential air travel access to previously isolated communities, fostering regional economic development. With a comprehensive ten-year operational plan, UDAN envisions ensuring inclusive access to air travel for all citizens.
The impact of RCS-UDAN is evident in the robust growth of the civil aviation industry, marked by the emergence of four new successful airlines in the last six years. The scheme has not only facilitated the initiation of airline operations but has also played a crucial role in developing sustainable business models. Moreover, it catalyzes small regional airlines, providing expansion opportunities. The success of these regional airlines underscores the scheme’s effectiveness in creating a conducive ecosystem for the aviation business.
Aviation Industry’s Progress Update (As of December 04, 2023):
– A budget allocation of Rs 4500 Crores has been designated for airport development under the Scheme, with Rs. 3751 Crores effectively utilized since its inception.
– Operations have commenced on 517 RCS routes, connecting 76 airports, including 9 Heliports & 2 Water Aerodromes.
– Over 1.30 crore individuals have availed the benefits of the scheme, experiencing enhanced connectivity.
– In the Budget 2023-24, Rs 1000 crore has been allocated for the revival and development of an additional 50 aerodromes nationwide, affirming the commitment to sustained growth and accessibility.
Passenger Surge in Aviation Sector
The aviation sector is also undergoing a notable resurgence in the aftermath of the COVID-19 pandemic, propelled by a substantial rise in passenger demand. Across both domestic and international realms, air travel is currently witnessing an unprecedented surge in passenger volumes, signaling a robust recovery and a promising outlook for the industry.
In the period spanning January to September 2023, domestic airlines registered a significant uptick, carrying 112.86 million passengers. This marks a notable 29.10% increase from the 87.42 million passengers transported during the corresponding period in 2022.
Similarly, between January and September 2023, airlines experienced a surge in international passenger numbers, carrying a total of 45.99 million passengers. This reflects a substantial 39.61% increase compared to the 32.94 million passengers transported during the same period in 2022.
Carbon Neutrality Initiatives in Aviation
The Ministry of Civil Aviation (MoCA) has embarked on significant initiatives aimed at achieving carbon neutrality and net zero carbon emissions at airports across the country. This involves the standardization of the Carbon Accounting and Reporting framework for Indian Airports. Airport operators with scheduled operations are urged to conduct comprehensive carbon emission mapping at their respective airports and gradually work towards achieving carbon neutrality and net zero emissions.
MoCA is actively promoting collaboration between developers of new Greenfield airports and respective state governments to prioritize carbon neutrality and net zero emissions in the developmental planning stages.
The concerted efforts by the Government of India have yielded notable results, with airports such as Delhi, Mumbai, Hyderabad, and Bengaluru attaining Level 4+ and higher Airports International Council (ACI) Accreditation, thereby achieving carbon neutrality. Furthermore, a total of 66 Indian airports are currently operating on 100% Green Energy, underscoring the commitment to sustainable and environmentally conscious aviation practices.