• The factors that contributed towards the growth of aviation can be broadly classified as:
  • Economic factors.
  • Political factors.

Economic Factors

  • Advent of low cost airlines.
  • Average growth in gross domestic product of around 8.9% during the last five years.  
  • Corporate showing increasing preference for private jets and air charter services.  
  • Emergence of service sector.   
  • Expectation of disposable income to increase at an average of 8.5% p.a. till 2015.
  • Increase in inbound and outbound tourists and medical tourism. 
  • Liberalization and economic reforms undertaken by the government. 
  • Over 300 million strong middle class.  
  • Rapid expansion of industries in consonance with economic reforms.   
  • The originated retail boom that would require the need for timely delivery thus contributing to the growth in the air cargo segment.

Political Factors

  • Approval to acquire new aircrafts.
  • Approval to private operators to operate on international sectors.
  • City side development of non-metro airports.  
  • Emphasis on development through public-private-partnership mode.    
  • Encouraging private investments in airport and airlines infrastructure.
  • Helpful FDI norms.   
  • Liberal bilateral service agreements.   
  • Modernization and setting up new airports throughout country.  
  • Open sky policy.   
  • Policy of license to new scheduled operators. 
  • Providing international airport status to major tier I and tier II cities.