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India is the 9th largest aviation market on the planet with a size of around US$ 16 billion and is ready to be the 3rd greatest by 2020. India aviation industry promises huge growth potential because of vast and growing middle class population, rapid economic growth, higher disposable incomes, rising aspirations of the middle class and overall low penetration levels.

Civil aviation industry in India is experiencing another period of expansion driven by variables such as low cost carriers, modern airports, foreign direct investments in domestic airlines, cutting edge information technology interventions and growing emphasis on regional network. Civil aviation sector has been growing steadily registering a growth of 13.8% during the last 10 years. The air transport in India has attracted FDI of over US$ 569 million from April 2000 to February 2015.

The Indian airports have a consolidated ability to take into 220.04 million travellers and 4.63 million tons freight per annum and took care of 168.92 million travellers and 2.28 million tons freight in 2013-14. As per estimates, passenger traffic at Indian Airports is expected to increase to 450 million by 2020 from 159.3 million in 2012-2013.

Looking at future air transportation necessities and desire to become a worldwide player in creating /commercializing aviation technologies, India is quickly constructing abilities to emerge as a preferred destination for manufacturing of aerospace parts.



Genesis of the Indian Airline Industry

1932: Mr. J.R.D.TATA flies a De Havilland Puss Moth from Karachi to Bombay as part of the first Tata Sons Ltd. flight to deliver mail carried by British Imperial Airways.

1948: Govt. of India acquires 49% stake in Tata Airlines, designates it a flag carrier and renames it Air India International (“AII”).

1953: Jawaharlal Nehru, in friendly transaction, convinces the Tata Group to let the Govt. of India acquire a majority stake in AII and nationalizes air transport.

1953: Indian Airlines formed by merging eight former independent domestic airlines.

1960: India enters the jet age with an Air India B707; USA and India are connected for the first time with an Indian airline.

1989: Indian Airlines becomes one of the first airlines to induct the A320 into its fleet.

1990: East West Airlines becomes the 1st private airline since 1953.