IATA predicts a 31% global passenger increase by the end of 2017
The International Air Transport Association (IATA) in its airline industry forecast report for 2012-17 estimated that the global airline industry can expect around 3.91 bn air travelers by the end of 2017, which is some 930 million at par with the count recorded by the end of 2012. Previously, the year 2012 stood out to be a benchmark as a count of air passengers crossed a whopping record of 2.98 billion which happened for the first time in the history of world aviation industry. The association in its report indicated that there will be at least a 31% hike in the flight takers around the globe, these cheerful figures have bought various airline operators on their toes again after a series of highly lethargic business quarters.
Amongst the well performing regional industries, the emerging sectors in Middle East and Asia Pacific will lead the profit booking race as they are likely to witness a CAGR of 6.3% and 5.7% respectively. These regions are estimated to be followed by the Latin American and African countries which are ought to have a CAGR of 4.5% and 5.3%. Taking into account the regional development process India is most likely to find place amongst the top scoring countries in the industry. The Indian airport sector is forecasted to draw in investments worth $12.1 billion by the end of 2017.
According to the Indian Aviation Department, some $9.3 billion of these investments will come from the private sector players. Thus, the experts in the industry expect the industry to fly higher in the recent following years. The ministry for the department pinning up high expectations as plans are all set for expansion and modernization of the current industry. Construction of new airports, modernizing selected heavy traffic airbases and operating low cost airline services along with airports are some of essential features which may encourage the industry and bring in high returns.
According to a market research around the industry the Indian aviation sector stands as the 9th largest in the world. The present air transport network is massive with around 41 million international flyers, 121 million domestic passengers and 85 international flight operators. The count of domestic operators is growing with every quarter as there are regular new names added. India at present has an airways connecting network to more than 40 destinations around the globe. Further the Indian report informed that the industry is gearing up to handle a capacity of around 336 million domestic passengers and 85 million international flyers by the end of 2020. If this is achieved by the predicted period, it will place India as the 3rd largest aviation industry with a fleet of 1000 aircrafts.
India is among the Asian nations which is sure to record a CAGR of 5%+ (5.7% is the predicted upper limit) and this growth percentage is predicted to be reached by the end of 2017.