Deep connectivity is a trump card for any economy

India is one of the most dynamic markets in aviation today. Currently, only about 1% of India’s population travels by air. But the situation is changing rapidly; there is an economic boom taking place in the country and there is enormous potential for growth since there are huge untapped markets. In the last 10 years, the number of airlines has grown from two to more than 10 today. There are great opportunities and challenges ahead.

It is interesting to study aviation in the US, a country with the world’s biggest appetite for domestic air travel. In the US, a medium size airport on an average handles around 1,500 flights carrying over 150,000 passengers a day or approximately 40 million passengers annually. In comparison, in India, with a population roughly four times that of the US, all airports put together handle around 1,000 flights per day or roughly 15 million passengers annually.

Compare this with the Indian railways, which carry 16 million passengers daily! In the context of rising per capita incomes and the ever-increasing need for travel spurred by economic boom, the potential for growth in the civil aviation sector is enormous.

The rate of growth of air traffic in India has risen from 8.5% in 2002-2003 to 26.5% in 2004-2005.

To achieve the level of penetration the US has, obtained today, the number of daily flights needs to be increased to 15,000 from the present level of 1,000. Given our socio-economic background, even if we target 50%, the trajectory for growth is immense.

The government has to invest in airport infrastructure with active participation from both public and private parties. The private carriers should have complete operational freedom to manage and run airports in India on a par with international standards.

There is an urgent need for restructuring and modernisation of our airports, especially metros which handle the maximum traffic. The government should also develop of airports in other cities with economic and industrial potential like Ahmedabad, Patna, Surat, etc.

Riding the wave of economic growth and the consequent rising affluence, there is a powerful surge in demand for speedy travel at low cost, factors that are critical in any financial equation wherein time and money are both precious and scarce.

It is not subsidy that drives growth, but connectivity, which is the key to success in any economy. After all, if Infosys were to set up a campus in Uttaranchal, what would be of help to them - subsidy or low-cost connectivity?

Aviation must penetrate deep and that is only possible by providing affordable air travel to the masses. Civil aviation in India has thus acquired an important role in the economic growth of the nation, and, in my view, the process is irreversible.

The author is the managing director of Deccan Aviation, which runs Air Deccan