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Aviation – India and the World: News and Views

Domestic air traffic to soar 3 fold to 218 million by 2025: Report

The number of air travelers in the country is slated to rise more than threefold to 218 million by 2025 from 70 million in 2015 and each metro requires a second greenfield airport to handle the traffic. 

The report was commissioned by Vistara airline and conducted by industry body CAPA (Centre for Asia Pacific Aviation) and is titled 'Maximising the contribution of aviation to the economy' . 

It says that the aviation sector can contribute 5 per cent to the country's GDP or $250 billion by 2025. This would mean the existing airports in the metros would not be able to meet the rising demand. 



International Traffic.


By 2015,  it  would be 120 million, up from 51 million.
This would further jump to 254 million by 2035, while the domestic load would stand at 527 million by 2035. 

Fleet Strength.

It would rise more than three fold to 1,084 by 2025 from 394 in 2015 and further to 2,564 by 2035. 

Jobs.

The report projected direct + indirect employment generation of over 2.3 million by 2050. 

The report suggests to increase investment in airport infrastructure, airspace management and skill development.
The sector is going to witness massive demand by 2025, which would necessitate that each of the major metros would have to have a new second airport. 

The report said that the incremental domestic traffic handled in 2004-14 was almost three times greater than during 1954-2004. 

While the aviation sector today contributes just $23 billion to the GDP of the country, which is a tad over $2 trillion, it is close to 6 per cent of GDP in the US and over 27 per cent of Dubai's GDP, the report said. 

The country is headed for an air traffic logjam with most of the existing metro airport infrastructure getting saturated in the next five years, the report said. 

It called for setting up of an airports approval commission to determine what kind of airports the country requires, when and where they are required, how much capacity is necessary and the level of capex that should be invested.