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The Aviation industry in India

History of The Aviation industry in India

Author: Van

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It was the year 1912, when it all began, with the first flight to Karachi from Delhi. This flight was operated by the Indian State Air Services in collaboration with Imperial Airways, based in the U.K

The two most important airlines - Indian Airline Corporation (IAC) and Air India were established after independence. Prior to their establishment, the government nationalised nine airline companies, whose assets were transferred to these two corporations for their functioning.

Indian Airlines and Air India, had monopoly over Indian skies for about four decades. During these years, taking a flight journey was considered the privilege of only a few and the number of flights that operated then was nothing compared to what the scene is now, in the aviation industry today. Though Vayudoot, was started as a way to provide flights between smaller cities, it was merged with IAC in 1994.

After liberalization happened, the aviation industry saw a tremendous change and a number of privately owned full service airlines and low cost carriers came into the airlines market. The coming in of more companies into the industry was been carried forward by other factors such as:

• Coming up of new airports, with modern facilities and restructuring of the existing airports.
• Expansion of existing fleet.
• Increase in services provided by state-owned carriers.
• Improvement in the services offered by the maintenance, repair and overhaul (MRO) industry in India.
• The opening up of new international routes by the Indian government.

The past three years since 2004, has been extremely good for the aviation industry, as air traffic increased tremendously. In the year 2006, during the April to September quarter, the number of domestic and international passenger saw an increase of 15.8 per cent and 44.6 per cent, respectively. Futuristic expectations of the aviation industry’s growth by the year 2020 include 100 million passengers, (about 60 million being domestic passengers) and an increase in cargo of about 3.4 million tonnes per annum.

These expectations are further strengthened by the results of the recent Aero India show that took place in Bangalore. This show was attended by 500 airline companies and these include 275 foreign ones, 45 foreign delegations and 35 Air Force. What was originally an exhibition put forth by the defence sector was characterised by high-profile business deals in civil machines. All this clearly indicates that India is going to out do other Asian countries in the aviation sector as more and more airlines vie to operate through Indian skies.

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