Aviation sector awaits $12 billion investment: Ajit Singh

Union Civil Aviation minister Ajit Singh on Wednesday said that a massive $12.1 billion investment, including $9.3 billion in the private sector is underway during 12th plan towards construction of new airports, expansion and modernisation of existing airports and development of low cost airports. The announcement comes at a time when the sector is already going through turbulent times, weighed down by rising competition, falling tariffs and higher fuel cost.

Inaugurating the fourth edition of the India Aviation show -2014 at Begumpet airport, Hyderabad, the minister said the Airports Authority of India (AAI) has already initiated work on more than 50 low-cost airports located in remote and interior areas of the country.

He said the biggest game changer since allowing 49% foreign direct investment by foreign airlines in Indian carriers has been the emergence of new players Air Asia and Tata SIA in addition to the $350 million initiative by Etihad in Jet airways.

"These are all results of our far-reaching reforms in the aviation policy regarding bilateral air services and host of other initiatives," he said.

Civil aviation secretary Ashok Lavasa said the national civil aviation university is emerging at Pusratgunj and the search committee is being set up to look for a vice chancellor etc. With the delay in the new civil aviation bill pending in parliament, the policy regarding safety and other reform initiatives like a new civil aviation authority will be pending till the new government takes charge.

Regional connectivity with promotion and modernisation of the tier-2 and tier-3 airports on low cost model is the priority and hence the CAPAC meeting scheduled during the Aviation-2014 will focus on these issues. The new initiatives and changes in aviation policy is expected to impact the domestic traffic growth at 11.4% and international traffic at 9.5%.

Rohit Nandan, CMD of Air India, said that all the incidents during the last one-and-a-half years on Boeing and other issues were thoroughly probed and found only software and component lapses and not safety issues.

"We have upgraded the entire fleet and now Air India dispatch level proficiency is 98.6% as against 98% of the international average" he said

Talking to reporters, Lavasa said the delivery schedules of most of the prestigious aircrafts were as per schedule and that Air India would emerge as a prestigious jewel among the world airliners with its host of Dreamliners and other aircrafts.