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Our Bureau

New Delhi, Feb 28 The civil aviation sector continues to report robust growth in January-December 2007 with domestic passenger traffic recording a growth of 32.51 per cent. The Economic Survey 2007-08, tabled in Parliament on Thursday by the Union Finance Minister, Mr P. Chidambaram, showed that the international air traffic grew by 15.6 per cent during the same period.

The survey points out that the combined number of international and domestic passenger traffic has almost doubled between 2004 and 2007. Similarly, international air cargo reported a growth of 13 per cent while domestic air cargo sector grew by 9.8 per cent during April-October 2007.

Commenting on the financial health of the sector, the survey states that the process of consolidation has started and is likely to enable the airlines to increase their revenues through synergies in operations and also by ensuring optimal utilisation of resources in a capital intensive sector.

During the year, not only did the Government initiate the process of merging Air India and Indian, but the merger of Jet Airways and Air Sahara was also completed and Kingfisher Airlines acquired Air Deccan.

The Government also decided to set up an Airport Economic Regulatory Authority (AERA) which is to be an Appellate Tribunal to adjudicate any dispute between two and or more service providers or between a service provider and consumers.

Realising that infrastructure development is a key issue, Airports Authority of India (AAI) started the process of modernising Kolkata and Chennai airports. In Chennai, AAI proposes to construct an integrated passenger terminal capable of handling 20 million passengers annually at an estimated cost of Rs 1,942.51 crore by June 2010.

AAI also plans to undertake the city side development of airports in 35 non-metro cities and hopes to complete major works in seven cities including Tiruchi and Agatti during the current financial year.

The survey adds that the main objective of the sector during the Eleventh Plan period would be to provide safe, reliable and affordable air services so as to encourage growth in passenger and cargo traffic and air connectivity to remote and inaccessible parts of the country apart from providing world class infrastructure.

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