Civil Aviation: Indian Aviation Outlook Bleak

Civil Aviation: Indian aviation outlook bleak

March 30, 2009 Demand for air travel dropped by a significant 6.8% this year. As per Giovanni Bisignani, Director General & CEO of the International Air Transport Association (IATA) poor infrastructure, slowing demand and high operating costs have hit the country’s aviation sector hard. India, whose market for international air services tripled in size between 2000 and 2008, is expected to see a capacity increase of just 0.7% in calendar 2009.

IATA has also revised its outlook for the global aviation industry, with projected losses of $4.7 billion for 2009, against losses of $2.5 billion predicted earlier. “The sharp drop in passenger and cargo demand is reshaping the industry with drastic change: from capacity cuts, to consolidation talks and cost reduction measures,” Bisignani said.

The world over, passenger yields will decrease 4.5% on average. The situation will improve only by the beginning of 2010, he said. Demand has deteriorated far more rapidly than what was anticipated even a few months ago with the economic slowdown. Global passenger traffic is expected to contract by 5.7% over the year.

A sharper fall in premium traffic will further exaggerate the revenue implications. Cargo demand is also expected to decline by 13.0%. Both are significantly worse than the December 2008 forecast of a 3% drop in passenger demand and a 5% fall in cargo demand. Falling fuel prices, however, are helping to cushion the large losses somewhat. With an expected crude price of around $50 a barrel, the industry’s fuel bill is expected to drop to 25% of operating costs, compared with 32% in 2008 when oil averaged $99 a barrel. Combined with lower demand, total expenditure on fuel will fall to $116 billion, compared with $168 billion in 2008.

Bangalore Air Show Photos

February 13, 2009

Bangalore air show 2009 February 9, 2009

Aero india Exhibition Aero India is an air show that takes place biennially in Bangalore at the Yelahanka Air Force Station. One of the major aviation exhibitions in India, the show was first held in the year 1996 and has acquired the position of being the fourth largest air show in the world. The Aero India in Bangalore is an illustrious event that brings new exciting opportunities for the aviation and aerospace industry. Aero India 2009 The 7th Aero India is being organized by the Ministry of Defence, Government of India. It is managed by Confederation of Indian Industry (CII) at Air Force Station Yelahanka, Bengaluru, India from February 11-15, 2009. Aero India has already carved a niche for itself globally as a premier aerospace exhibition, with six successful editions organized between 1996 and 2007.The show aims at bringing under one roof, exhibitors from all around the globe to showcase the best in aviation. Aero India includes both flight and static displays of a wide range of civil and military aircrafts from leading manufacturers, vendors and suppliers. The Organizers of Aero India: Defense Ministry: Aero India Bangalore is organized by the Defense Ministry of India in association with the Defense Research and Development Organization, the Indian Air Force, the Department of Space, India and the Union Civil Aviation Ministry. Federation of India Chambers of Commerce and Industry ( FICCI): FICCI is one of the main organizers of Aero India. The largest and oldest apex business organization of Indian business, FICCI organizes a number of events including the Aero India.