IATA tells Indian aviation it's big, getting bigger, but way behind times

THE International Air Transport Association (IATA) has called on India for a more coordinated, up-to-date, far more internationally minded approach to a range of issues if it is to shore up the nation's magnificent gains in aviation.

"Under the leadership of Minister Praful Patel, international flight frequencies to India have tripled to nearly 2,300 per week. India is more connected than ever to our globalised world, bringing enormous economic benefits," said IATA director general and CEO Giovanni Bisignani.

"But there is still much more to be done," he told an industry dialogue held by the Confederation of Indian Industry in New Delhi. "It's time for a comprehensive approach with a common vision by all involved."

Protectionist foreign investment policy is one handicap, he said: "With the old world approach to foreign direct investment (FDI) in aviation by the Ministry of Commerce, India allows 100 per cent FDI in transit systems, ports, harbours, hotels, ocean transport and road systems. But airline FDI is restricted to 49 per cent. No foreign airline can invest in an Indian airline. The inconsistency is difficult to understand."

Mr Bisignani asked if it made sense that a non-Indian airline can own 100 per cent of a green field airport, but cannot invest a single rupee in an Indian airline? "The success of India's airlines should not be compromised by an archaic investment policy that isolates them from global trends," he said, noting recent trends of consolidation, multi-hub and multi-brand strategies.

Security was another problem with Mr Bisignani noting that India takes its own course too often. "India chose to ignore [international] standards and invented its own unique requirements and processes. Moreover, local customs offices in Bangalore and Mumbai have added further local complications. Each deviation from the global standard adds costs but does not improve security," he said.

Mr Bisignani noted the tremendous potential for Indian aviation which currently a market of 42 million annual passengers domestically and a further 34 million internationally. "If Indians flew as much as Americans, it would be a market of over four billion passengers. With the spending power of Indians set to triple over the next two years, the potential for growth is incredible," said Mr Bisignani.

On infrastructure, he said: "I have concerns over Mumbai. By 2016, stop-gap measures may take capacity up to 40 million. But where is Mumbai's 100 million passenger plan? We must find a solution that is environmentally responsible. The clock is ticking."
(Source:www.schednet.com)