International aviation Summit
Why in News?
- The International Aviation Summit is being held New Delhi. The summit has been jointly organised by the Airports Authority of India, Ministry of Civil Aviation and International Air Transport Association (IATA).
Summit Key Highlights:
- Union Minister for Civil Aviation revealed that the Civil Aviation Ministry is coming up with Vision 2035 under which it plans to build 100 new airports across India in the next 10-15 years with an investment of USD 60 billion and address the major issues concerning aviation industry such as airport infrastructure, taxation and use of technology.
- The airports will be constructed through a public-private partnership. The Minister also said that India’s economy is poised to grow to USD 10 trillion by 2035 and aviation sector will be one of the major contributors to that growth.
- The Indian Government is preparing for a massive air traffic surge to handle as many as 100 crore passengers in next 15-20 years, much above the 50 crore trips a year as predicted by IATA. According to IATA, India is expected to overtake Germany, Japan, Spain and the UK within the next ten years to become the world’s third largest air passenger market.
Challenges to growth of the sector:
- India’s aviation industry is showing contrast as on one hand there are infrastructural and economic issues plaguing the sector while on the other, airline companies are busy buying planes to meet the demand.
- With a surge in domestic air travel demand in India, the country’s airlines are gearing up for a rise and have ordered around 1,000 aircraft over the next eight years. But despite traffic growth, the financial outlook for domestic airlines has deteriorated dramatically since January.
- Imposing GST on international air tickets is being seen as a violation of international standards. The GST rate is 5% and 12% on economy and business class tickets respectively.
- The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 280 airlines or 83% of total air traffic. Formed in April 1945, it is the successor to the International Air Traffic Association, which was formed in 1919.
- It is headquartered in Montreal, Quebec, Canada with Executive Offices in Geneva, Switzerland.
- IATA supports airline activity and helps formulate industry policy and standards. It also provides consulting and training services in many areas crucial to aviation.
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