The Government is keen on ensuring the aviation sector faces the challenge of growth efficiently with adequate expansion of physical infrastructure and soft skills over the next 15 years, according to the Union Minister for Civil Aviation, Jayant Sinha.
Over the next decade or more aviation sector is expected to multiply up to three times its present size now when over 140 million people fly annually. This is actually more than the estimated 130 million who travel by air conditioned coaches by rail. And there is huge headroom for growth which is happening, he said.
The Government is putting in place policies to ensure a multi-tiered model of growth in infrastructure and quality services, he said addressing the G Ramachandran Memorial Lecture, the 3rd in the series organised annually under the auspices of the Southern India Chamber of Commerce & Industry.
The recently announced UDAN, regional connectivity scheme, for short distance air services connecting small towns with larger hubs which is expected to be in place early next year. Airlines will bid for these services which will potentially bring into use over 17 underserved airports and 400 unused airports. As of now there are 75 airports with scheduled services. The airlines will bid for viability gap funding, he said.
The regional services will help launch commuter and feeder services, link remote locations with each other and enable niche offerings like spiritual tourism, he said.
Over the next 10 years airport network will be tripled with existing airports in major cities developed as global hub airports, creation of green field airports, regional hubs and major cargo and manufacturing hub airports.
Quality of customer services will also be improved by bringing together service providers and stake holders to ensure comfortable travel and resolution of complaints. A mobile app will soon be launched for complaint registration and assured response, he said.
On the demonetisation scheme, Sinha said the decision to pull out ₹ 500 and ₹ 1000 denomination currency notes from circulation will deliver multiple benefits. As people surrender these notes bank deposits will grow, tax base will expand and the black or parallel economy will be compressed. Counterfeit currency will also be pushed out.
Digital payments will grow, which is a cheaper option than currency-based transactions which can be expensive, he said.