Aviation as an infrastructure segment has played vital role in facilitating the growth of business and economy in India. A robust civil aviation set-up is key to seamless flow of investment, trade and tourism, with significant multiplier effects through the economy. Aviation sector does not only provide air transport for passengers and goods, but also is a strategic element for employment generation. About one-third of world trade (by value) is delivered by air and about half of international tourism is facilitated by air links.
Civil aviation industry is an important engine for innovation and technological progress in a world of decreasing barriers to trade.
Market Size * Total domestic passengers carried by the scheduled domestic airlines between January and April 2013 were 20.289 million, revealed the official statistics. * No-frill carrier IndiGo lead in terms of market share with 29.8 per cent of the pie, followed by Jet Airways-Jet Lite combine at 22.6 per cent, Spice Jet 19.6 per cent, Air India Domestic 19.2 and Go Air at 8.9 per cent for the January-April 2013 period. * The air transport (including air freight) in India has attracted foreign direct investment (FDI) worth US$ 449.26 million from April 2000 to march 2013, as per the data released by Department of Industrial Policy and Promotion (DIPP).
Key Developments and Investments * Jet Airways, India's second largest airline by market share, is in talks with Abu Dhabi-based Etihad Airways for a strategic alliance. In the light of the discussions, the two have been involved in various collaborative agreements.
Jet has recently leased a wide body aircraft along with 60 of its cabin crew to Etihad. According to the ‘aviation’ jargon, a wet lease of an aircraft is an arrangement whereby the lessor (Jet in this case), provides crew, maintenance and aircraft for a consideration. In turn the lessor takes on the responsibility for supplying and operating the aircraft.