NEW DELHI: The aviation sector has been accorded much priority in India with investments by the government as well as airlines like Indigo and Air India, said Willie Walsh, Director General of the International Air Transport Association (IATA).
He was responding to a query regarding the Dublin airport being impacted due to a passenger cap of 32 million being imposed there during a joint media briefing with Pieter Elbers, the CEO of Indigo, on the second day of the IATA annual general meet. Walsh cited the instance of India booming in the aviation sector due to the complete support the industry received. “Such artificial caps like that being in Dublin should not be enforced,” he said.
Elbers said that India’s aviation growth is a holistic one with both Delhi and Mumbai set to have their second airports. Elaborating on the returns the sector offered, the CEO said, “Every rupee invested in aviation gives a return of Rs 3, every dollar gives three dollars in return. A single job created in aviation creates six jobs in other areas.”
By 2027, India would overtake Germany and become the third largest economy in the world while it has recently overtaken Japan to become the fourth largest one, Elbers pointed out.
“Aviation is an integral part of economic growth,” he stressed. “There is an incredible pool of talent and ambition in India. The country must create infrastructure for the MRO (Maintain, Repair and Overhaul) industry. Traffic and business will go to countries where it is good to do business,” he added.
On the impact on airlines due to geopolitical tensions and closed air space, Willie said the industry has always faced such issues and was quite resilient. “When airspace is closed, airlines will quickly adapt and find alternative routes.”
To another query on the issue of Blocked Funding faced by airlines in a few countries, Willie said this was really a challenge. “The profit margins are just 3.7% and no airlines can afford to have funds trapped in the hands of the government. The airlines would not continue with operations and would exit from the country. This would impact the economy enormously,” he said.
Fuel companies are taxing airlines: IATA Dir General
To a query as to whether the airline industry would achieve net-zero carbon emissions by 2050, the IATA Director General expressed his doubts about it. “Fuel companies are passing on the burden to airline companies. The mandate to incorporate Sustainable Aviation Fuel is cited as a reason. They are just passing on the penalties imposed on them to airlines but are not adhering to the mandate,” he said