GROWTH DRIVERS

GROWTH DRIVERS

• 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.