India to become third largest aviation market by 2024: Report

MUMBAI: India, currently the world’s seventh largest aviation market, is set to become the third largest aviation market by 2024, said International Air Transport Association (IATA), a global airline trade body, in its 20-year air passenger forecast. By 2037, of 572 million new passengers in the world, India will account for 414 million.

Present trends in air travel suggest that the number of passengers could double to 8.2 billion in 2037, which represents 290 airlines or 82 per cent of global air traffic, said the report.

“The Asia-Pacific region will drive the biggest growth, with more than half the number of new passengers in the next 20 years,” the report said, adding that growth in this market is being driven by continued robust economic growth, improvement in incomes and favorable population and demographic profiles. China will displace the US as the world’s largest aviation market in the mid-2020s. India will take the third place after the US around 2024, surpassing UK. Indonesia is expected to go from the world’s tenth largest aviation market in 2017 to the fourth largest by 2030. Thailand is expected to enter the tenth spot in 2030, replacing Italy.

In the next two decades, the forecast anticipates a 3.5 per cent compound annual growth rate (CAGR), leading to a doubling in passenger numbers. The association warned, however, that growth prospects for air transport and the economic benefits driven by aviation could be curtailed if protectionist measures are implemented by governments.

“Doubling of flyers in the next 20 years could support 100 million jobs globally. We are seeing a geographical reshuffling of world air traffic to the East. Also, we foresee a negative impact on the growth of aviation if restrictive protectionist measures are implemented,” said Alexandre de Juniac, IATA’s director-general and CEO.