IATA has delivered a wide-ranging review of progress in India’s aviation sector.
Its verdict: There is much scope for improvement.
Giovanni Bisignani, IATA’s director general and CEO, said the potential of the Indian market is huge.
"If Indians flew as much as Americans, it would be a market of over four billion passengers. With the spending power of Indians set to triple over the next two years, the potential for growth is incredible,” said Bisignani.
On safety, he recommended that the IATA Operational Safety Audit (IOSA) is mandated for all India’s carriers.
"IOSA has helped IATA’s members achieve a safety record 2.5 times better than the global average. Taking advantage of this global standard will add a new dimension to India’s safety oversight," he said.
On aviation charges, Bisignani was especially critical of the Indian government.
"The Ministry of Finance has added US$236 million to the cost of operating in India with an extension of India’s 10.3 percent service tax from international premium tickets to economy and domestic travel as well, in contravention of the International Civil Aviation Organisation (ICAO) rules. "
"It is an embarrassing situation for such a relevant country as India—which is a member of the ICAO Council—to be ignoring rules that it has helped to develop," said Bisignani.
Bisignani noted a similar disconnect on security.
"Global standards, approved through ICAO, exist for the transmission of advance passenger information to governments for security purposes."
"India chose to ignore these standards and invented its own unique requirements and processes. Moreover, local customs offices in Bangalore and Mumbai have added further local complications."
"Each deviation from the global standard adds costs but does not improve security. "
"The Indian government committed to develop a programme based on global standards with a single portal for transmitting data. "
"The deadline for that has passed and we are still waiting."
"And to add insult to injury, airlines are now being threatened with fines for data transmission errors resulting from the complexity of the system," said Bisignani.
