India’s Aviation market is at an all-time high, recording growth in the double-digits for the past four years. The mere fact that the aviation industry is projected to be the third-largest market in India – behind powerhouses like China and USA – should prove beyond a shadow of a doubt that this industry is one of the fastest-growing sectors in the country.
Of course, this is a double-edged sword – the massive growth that this sector has, is, and continues to experience means that the competition in the job market can prove to be quite ruthless indeed. Employers will be searching for candidates that have all the leadership, analytical, managerial skills to tackle the incoming challenges of the future – a criterion that can be quite a trial to meet for the majority of aspirants who wish to break into this sector.
Thankfully, institutes like ILAM are providing you with the means to attain these skill sets through a BBA in Aviation Management course. The knowledge – both theoretical and practical – that one will achieve through this course can help secure their prospects in the aviation sector.
However, this doesn’t answer the elephant in the room – why exactly is the aviation sector booming in India, to begin with? Well, the answer lies in four key elements that are shaping the rise of this industry as we know it.
Increasing investments
The prominence of any industry is directly tied to the investments made in this particular sector, and the aviation industry is no exception to this golden rule. The mere fact that the aviation industry is expected to witness a monumental investment of Rs. 1 lakh crore over the next five years is indicative of the fact that this sector will experience an upsurge in the coming future.
Several government initiatives are also facilitating remarkable growth in the aviation industry. The privatisation of sectors is opening the way for companies and conglomerates to invest in the aviation sector. The ADANI group is one such conglomerate that has invested in the aviation sector to the extent where it has become the third-largest private operator in passenger volume.
High levels of demand
Perhaps the most obvious indicator that hints towards the prominence of the aviation industry in the coming years has to be the incredibly high level of demand experienced in this sector. The working and middle-class demographic is bound to expand over time, with India expected to become the third-largest market in terms of passengers by 2024.
This statement is further highlighted by the fact that passenger growth has increased from 40 million to 110 million in the last five years and is expected to reach up to 150 million by 2020. It’s a telling statistic that highlights the demand that this sector will experience over time.
Beneficial policy implementation
The support that the aviation industry has been provided through government policies should definitely be highlighted. The fact that foreign investment of up to 49% is allowed for scheduled air transport service, regional air transport service, and domestic passenger airlines is indicative of the government’s support for the aviation industry.
Along with this, there’s also the Ude Desh ka Aam Naagrik (UDAN) scheme – an initiative by the Indian Government with the objective of “letting the common man fly.” It aims to strengthen domestic travel, covering up to a distance of 800 km. Forty-three cities will benefit under the scheme, with 31 destinations being made operational in the process.
Greater MRO opportunities
MRO – standing for Maintenance, Repair, and Overhaul – is a crucial aspect of aviation, serving as the second-biggest expense after fuel at around 13%-15% of the total revenues. By 2020, the MRO industry itself is projected to reach a valuation of $2.6 billion, indicating the wealth of opportunities present in this sector itself. With the relation establishing between the MRO and the aviation industry, it’s evident that the success of one sector will positively impact the other.
The aviation industry is a booming industry due to several reasons. Huge investments, MRO requirements, advantageous policies, and increasing demand levels have gone a long way in ensuring the continued prominence of this sector. Institutes like ILAM are leaders in aviation that are creating aviation professionals through new-age courses in the form of a BBA in Aviation Management. ILAM has been at the forefront of creating future-ready professionals in the industries of tomorrow, ensuring that this industry is bound to be perforated with a wealth of professionals who are fit to tackle the challenges in this sector.