Meaning & Concept of Aviation — Trends & Growth of Global and Indian Aviation Industry
Meaning & Concept of Aviation — Trends & Growth of Global and Indian Aviation Industry
Aviation has grown 5% per year for 30 consecutive years — doubling in size every 15 years. More than half of all international tourists travel by air. India is set to become the world’s largest civil aviation market by 2030. Here is the complete picture.
Aviation may be defined as “the art or science of flying of an aircraft” — or more precisely, “the art of aeronautics that may include the design, development, production, operation and use of aircraft, especially heavier-than-air aircraft.” The term aviation is derived from the Latin word “avis” meaning “bird.” The word “aviation” was first coined by French writer and former navy officer Gabriel La Landelle in 1863 from the verb “avier” meaning flying.
Air travel growth remained twice the annual growth of global GDP — making aviation one of the most resilient growth industries in the world. More than half of all international tourists travel by air. LCCs (Low Cost Carriers) control around 25% of global aviation and are growing rapidly in emerging markets.
India is anticipated to become the 3rd largest aviation market by 2020 and the world’s largest civil aviation market by 2030. Driven by: rising incomes, LCCs, airport modernisation, FDI liberalisation, IT advancement, and UDAN regional connectivity scheme.
49% FDI: Allowed in domestic airlines via automatic route
10-year tax exemption: For private investors building airports 150km from existing airports
74% FDI: Allowed in non-scheduled and cargo airlines
UDAN Scheme: 50 new airports to boost regional connectivity
ISRO-AAI MoU: Space technology for airport construction
Make in India: Boeing assembling Chinook and Apache helicopters in India
◆ Word “aviation” coined by Gabriel La Landelle (France) in 1863
◆ Civil aviation subdivided: Scheduled + Non-Scheduled (General Aviation)
◆ Military aviation history: Battle of Fleursus, 1794 — French used balloons
◆ ICAO = regulator of civil aviation internationally
◆ Global stats: 3.7B passengers · 35M departures · 2,000 airlines · 3,900 airports
◆ LCCs = 25% of global aviation market
◆ Aviation revenue doubled: $369B (2004) → $746B (2014)
◆ India: 9th largest market · $16B · CAGR 11.8% (2006-16) · 3rd by 2020 · 1st by 2030
◆ India governing bodies: Ministry of Civil Aviation, DGCA, AAI, AERA, BCAS
◆ FDI in domestic airlines: 49% via automatic route · Greenfield airports: 100%