Tuesday, March 4, 2025

India Soars High: Aviation & Tourism Thrive in 2024 Review!

By GS Bawa

GS Bawa

As the year 2024 ends, in the review of the same, we find India’s aviation and tourism sectors have witnessed significant growth and development. The Ministry of Civil Aviation’s Year Ender 2024 and the Ministry of Tourism’s Year Ender 2024 highlight the major achievements and initiatives that have shaped these sectors.

Year-enders, also known as annual reviews or year-in-review reports, serve several purposes in the corporate world, including government institutions. Here are the advantages and purposes of Year Enders – Advantages and Purposes; (i) Reflect and Evaluate: Year Enders provide an opportunity to reflect on the accomplishments, challenges, and lessons learned during the year, (ii) Set Future Goals: By evaluating past performance, organizations can set realistic goals and objectives for the upcoming year, (iii) Enhance Transparency and Accountability: Year Enders demonstrate an organization’s commitment to transparency and accountability by sharing its achievements and challenges with stakeholders, (iv) Improve Communication: Year Enders facilitate communication among team members, stakeholders, and the public, ensuring everyone is informed about the organization’s progress, (v) Boost Morale and Motivation: Highlighting accomplishments and recognizing team members’ contributions can boost morale and motivation, and (vi) Establish Thought Leadership: Year Enders can position an organization as a thought leader in its industry by sharing insights, trends, and best practices.  I, during my long stint with aviation, have dealt with a good number of year-enders; and wish year-enders shall be seen with the following Improvements –

  1. Make it More Engaging: Incorporate visuals, infographics, and storytelling techniques to make the Year Ender more engaging and easier to understand.
  2. Include Data-Driven Insights: Use data and statistics to support achievements and challenges, providing a more comprehensive understanding of the organization’s performance.
  3. Focus on Impact: Instead of just listing achievements, focus on the impact of those achievements on stakeholders, customers, or the environment.
  4. Involve Multiple Stakeholders: Encourage contributions from various stakeholders, including employees, customers, and partners, to provide a more well-rounded perspective.
  5. Publish it on time: Release the Year Ender on time, preferably in the first month of the new year, but later than the first quarter of the new year, to maintain relevance and momentum.

Coming to Aviation; I would like to link it with the Tourism Focus too as I believe that the two sectors enjoy a typical Symbiotic Relationship that complements each other.  As such, for this article, I have attempted to explore them together, i.e., Year Enders of the Ministry of Civil Aviation and Ministry of Tourism.  Here are some potential angles on which the Lense focus: (i) Highlighting Safety Achievements: Aviation companies can use Year Enders to highlight their safety achievements, such as reduced accident rates or improved safety protocols, (ii) Showcasing Tourism Growth: Tourism boards can use Year Enders to showcase growth in tourism numbers, new destinations, or innovative marketing campaigns, (iii) Focusing on Sustainability: Both aviation and tourism companies can use Year Enders to highlight their sustainability initiatives, such as reducing carbon emissions or implementing eco-friendly practices, (iv) Recognizing Employee Contributions: Year Enders can be used to recognize the contributions of employees in the aviation and tourism industries, such as exceptional customer service or innovative solutions.

The Symbiotic Relationship:

Before coming to the specific year-enders of Aviation and Tourism, I once again want to justify the bonding between them with the inbuilt symbiotic relationship. It is essential to analyze the initiatives and achievements of both ministries together in the areas of – (i) Infrastructure Development: The growth in air connectivity and passenger traffic is closely tied to the development of tourism infrastructure, such as airports, hotels, and amenities, (ii) Sustainable Tourism Practices: The promotion of sustainable tourism practices by the Ministry of Tourism is complemented by the Ministry of Civil Aviation’s focus on reducing carbon emissions and promoting eco-friendly aviation practices. By analyzing the Year-Enders of both ministries, together, we can gain a deeper understanding of the interconnectedness of the tourism and civil aviation sectors in India. 

The Ministry of Civil Aviation’s Year Ender 2024 highlights significant achievements in India’s aviation sector. Here are some key accomplishments:

Record Passenger Traffic

  • Domestic Routes – During the year 2024 (January-November), Scheduled domestic airlines operated a total number of 1.02 million scheduled flights carrying a total of 146.4 million scheduled passengers as against 0.97 million scheduled flights carrying a total of 138.2 million scheduled passengers during the previous year 2023 (January-November). The number of domestic passengers carried by scheduled domestic Indian Carriers has witnessed a growth of 5.9% in the year 2024 as compared to the previous year 2023 during the same period (Jan to Nov). Marking a new record, domestic air passenger traffic crossed 5 lakhs for the first time in a single day on November 17, 2024.
  • International Routes – During the period January to November 2024 a total of 64.5 million passengers were carried on international routes by Scheduled Indian & foreign operators as against 58.0 million in the corresponding period in 2023, thereby witnessing a growth of 11.4%. Out of the 64.5 million passengers, 29.8 million passengers were carried by Scheduled Indian carriers while 34.7 million passengers were carried by scheduled foreign carriers during the period from January to November 2024.

The Bharatiya Vayuyan Adhiniyam 2024 (BVA 2024):  The BVA-2024 was introduced by the Minister of Civil Aviation Sh. Ram Mohan Naidu, was passed by Lok Sabha on 09.08.2024 and by Rajya Sabha on 05.12.2024. The Bill, after receiving assent from the President, the Central Government hereby appoints the 1st day of January 2025 as the date on which the provisions of the said Act, shall come into force. The Bharatiya Vayuyan Adhiniyam, 2024 (BVA 2024) is a legislative reform aimed at modernizing India’s aviation sector by re-enacting the Aircraft Act, of 1934, in alignment with contemporary needs and global standards. In line with the Prime Minister’s call to remove colonial-era influences, BVA-2024 addresses the need for clarity, efficiency, and ease of doing business in the aviation industry. The new legislation will foster indigenous manufacturing under Make in India and Atam Nirbhar Bharat initiatives, align with international conventions like the Chicago Convention and ICAO and streamline regulatory processes, such as simplifying the issuance of licenses. The BVA-2024 removes redundancies and provides provisions for appeals. Ultimately, the BVA-2024 aims to revolutionize India’s aviation sector, enhancing safety, innovation, growth, and global compliance.

Major Conferences and Seminars:

  • 2nd Asia-Pacific Ministerial Conference on Civil Aviation held in India

Under the chairmanship of Union Minister of Civil Aviation Sh. Ram Mohan Naidu, Ministry of Civil Aviation successfully organized the 2nd APAC-MC on 11th and 12th September 2024 in New Delhi. As a major achievement, the Delhi Declaration was proclaimed by the Hon’ble Prime Minister of India Sh. Narendra Modi during the conference. The conference was attended by Hon’ble Ministers and high-level dignitaries from twenty-nine (29) Asia Pacific countries. Further, the conference was also attended by other aviation-related International Organizations such as IATA, ACI, etc. and representatives from ICAO.

  • 6th Helicopters & Small Aircraft Summit:

The 6th Helicopters & Small Aircraft Summit held in Shillong, Meghalaya served as a platform to address key challenges and explore opportunities within the aviation sector, with a particular focus on helicopters, small aircraft, seaplanes, and skill development. Discussions explored opportunities for enhancing regional connectivity through helicopters and small aircraft, particularly in remote areas. The Summit highlighted the potential of expanding helicopter services to support tourism, healthcare, and trade.

  • 2nd North-East Aviation Summit:

The 2nd North-East Aviation Summit focused on transforming the aviation landscape of the Northeast with improved connectivity and world-class infrastructure. It underscored the importance of initiatives like UDAN in empowering local communities and unlocking the region’s economic and tourism potential. Participants discussed the need for enhanced regional connectivity to support tourism, trade, and healthcare access. The Summit also highlighted a demand for increasing direct international flights from Assam to destinations like Bangkok, Dhaka, Singapore, and Kathmandu, aiming to position the region as a global hub.

Expansion of Airports and Terminals:

  • Significant infrastructure developments include laying the foundation for new terminals at Varanasi, Agra, Darbhanga, and Bagdogra. The Hon’ble Prime Minister Narendra Modi also inaugurated airports in Sarsawa, Rewa, and Ambikapur, strengthening regional connectivity.  Hon’ble PM Narendra Modi inaugurated new airports at Aligarh, Azamgarh, Chitrakoot, Moradabad, and Shravasti, further expanding air connectivity across the state.

Setting up of Greenfield Airports:

  • Government of India has so far accorded ‘in-principle’ approval for setting up 21 Greenfield Airports across the country namely, Mopa in Goa, Navi Mumbai, Shirdi and Sindhudurg in Maharashtra, Kalaburagi, Vijayapura, Hassan and Shivamogga in Karnataka, Dabra (Gwalior) in Madhya Pradesh, Kushinagar and Noida (Jewar) in Uttar Pradesh, Dholera and Rajkot in Gujarat, Karaikal in Puducherry, Dagadarthi, Bhogapuram and Oravakal (kurnool) in Andhra Pradesh, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala and Itanagar in Arunachal Pradesh.

Out of these, 12 Greenfield airports, namely Durgapur, Shirdi, Sindhudurg, Pakyong, Kannur, Kalaburagi, Oravakal (Kurnool), Kushinagar, Itanagar, Mopa, Shivammogga and Rajkot have been operationalized.

Further, development works at two major airport projects i.e. Noida (Jewar) and Navi Mumbai International Airports are at the advanced stage of completion and these airports are targeted for operationalization by the first quarter of FY 2025-26.

The government has also granted ‘Site Clearance’ for the construction of 9 Greenfield airports namely Alwar in Rajasthan, Singrauli in Madhya Pradesh, Mandi in Himachal Pradesh, Kottayam in Kerala, Puri in Odisha, Doloo in Assam, Parandur in Tamil Nadu, Kota in Rajasthan and Raichur in Karnataka. Among these, ‘Site Clearance’ to 4 Greenfield Airport projects viz. Doloo, Parandur, Kota and Raichur have been granted during 2024.

CAPEX on Infrastructure Development

Under the National Infrastructure Pipeline (NIP), CAPEX of more than Rs. 91,000 crore is envisaged for airport infrastructure development during the period FY 2019-20 to FY 2024-25, where the share of AAI is approx. Rs. 25,000 crore and the remaining expenditure is to be borne by airport developers under PPP mode. Expenditure of approx. Rs. 82600 crores have been incurred under NIP from FY 2019-20 till November 2024.

RCS-UDAN – 8 Years of Regional Connectivity:

RCS-UDAN celebrated its 8th anniversary, with 619 routes and 88 airports operationalized since the launch of the scheme, exemplifying the government’s commitment to affordable air travel. RCS-UDAN was launched on 21 October 2016 to enable air operations on unserved/underserved routes connecting different regions, promote balanced regional growth, and make flying affordable for the masses.

New RCS Routes, 102 in number, commenced in the year 2024 of which 20 new RCS routes commenced in the North-Eastern States of the country. In addition, 12 Aerodromes have also been operationalized which includes four Heliports.

Inauguration of UDAN Yatri Café

In line with the Hon’ble Prime Minister’s vision of democratizing air travel, the UDAN Yatri Café was inaugurated by Civil Aviation Minister Sh. Ram Mohan Naidu at Kolkata’s Netaji Subhas Chandra Bose International Airport. This initiative aims to provide passengers with affordable and quality food options, addressing concerns over high prices at airport eateries. The café offers a variety of budget-friendly items, including tea priced at ₹10 and samosas at ₹20, ensuring that travellers have access to reasonably priced refreshments. The inauguration coincided with the centenary celebrations of Kolkata Airport, marking 100 years of its establishment.

Expansion of Digi Yatra Services

Hon’ble Minister Sh. Ram Mohan Naidu launched Digi Yatra at 9 more airports this year. It has transformed passenger experiences with seamless, contactless travel. Digi Yatra is now operational at 24 airports namely Delhi, Bangalore, Varanasi, Pune, Kolkata, Vijayawada, Hyderabad, Mumbai, Ahmedabad, Jaipur, Guwahati, Lucknow, Cochin, Chennai, Bagdogra, Bhubaneswar, Coimbatore, Dabolim, Indore, MoPA Goa, Patna, Raipur, Ranchi and Vishakhapatnam. Since its launch, 80+ lakh users downloaded the app and 4+ crore journeys have been completed with the Digi Yatra facility. Digi Yatra App is available on Android as well as iOS platforms. Eventually, all the airports will be covered with Digi Yatra in a phased manner.

Guidelines for Seaplane Operations

The Minister of Civil Aviation Sh. Ram Mohan Naidu launched Guidelines for Seaplane Operations in India on 22.08.2024. These guidelines prioritize the safety and security of operations and define the responsibilities of all stakeholders, ensuring a seamless and efficient seaplane operation across the nation. The adoption of the Non-Scheduled Operator Permit (NSOP) framework for seaplanes is a significant step forward in the Government’s commitment to enhancing regional connectivity with a focus on allowing expeditious commencement of seaplane operations in the country. UDAN Round 5.5 has been launched to invite bids for seaplane operations from more than 50 water bodies across the country.

MRO Sector Development-

The Government has introduced several policies and regulations to bring India’s MRO sector to par with global peers and support the growth of the MRO industry in India. In a major boost to the domestic MRO industry and the aviation sector, the Government announced on 12th July 2024 that a uniform rate of 5% IGST will apply to imports of Parts components, testing equipment, tools and toolkits of aircraft, irrespective of their HSN classification subject to specified conditions. Previously, the varying GST rates of 5%, 12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts. This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector. Further, the period for export of goods imported for repairs has been extended from six months to one year. Also, the time limit for re-import of goods for repairs under warranty has been extended from three to five years.

Advancing Gender Equality in India’s Aviation Sector

To promote gender equality in the aviation sector, an advisory has been issued on “gender equality in the civil aviation sector” for industry stakeholders to increase the number of women in various positions to 25% by 2025 in India’s aviation industry. Stakeholders have been advised to promote enhanced representation of women in the aviation workforce and introduce leadership and mentorship programs for women in the organization.

Pioneering Green Energy Adoption

The Minister of Civil Aviation Sh. Ram Mohan Naidu has been driving the adoption of conventional sources of energy at airports reducing the carbon footprint of operations. 80 airports have switched over to 100% green energy usage with 12 airports making the switch in 2024. Bengaluru Airport has achieved the highest Carbon Accreditation Level 5 of the Airports International Council (ACI), whereas Airports viz. Delhi, Mumbai and Hyderabad have achieved Level 4+ ACI accreditation, becoming Carbon neutral.

The Ministry of Tourism’s Year Ender 2024:

The Ministry of Tourism’s Year Ender 2024 highlights significant achievements in India’s tourism sector.  The major events and initiatives that shaped India’s tourism sector in 2024, include; Inauguration of India’s first-ever tribal circuit: The Ministry of Tourism launched a tribal circuit in Chhattisgarh, promoting tribal tourism and providing livelihood opportunities for local communities, Launch of the Swadesh Darshan 2.0 scheme: The Ministry of Tourism revamped the Swadesh Darshan scheme, aiming to develop sustainable and responsible tourism infrastructure in the country, India’s first-ever ski resort in Gulmarg: The Jammu and Kashmir government inaugurated India’s first-ever ski resort in Gulmarg, promoting winter tourism in the region, Introduction of the Bharat Gaurav scheme: The Ministry of Railways launched the Bharat Gaurav scheme, offering thematic tourist trains to promote India’s rich cultural heritage, UNESCO World Heritage Site recognition: Several Indian sites, including the Sacred Ensemble of the Hoysala Temples and the Gujarat Dholavira, were recognized as UNESCO World Heritage Sites, Foreign Tourist Traffic : India’s tourism sector has seen significant growth, with foreign tourist arrivals increasing by 3.5% in 2023 compared to the previous year, Signature Campaigns of India : The government has also launched several initiatives to promote tourism, including the “Incredible India” campaign and the “Tourism for All” initiative.

Summing Up:

These achievements demonstrate the efforts to promote growth, sustainability, and innovation in India’s aviation sector, through;  Increased Air Connectivity: 60 new RCS routes commenced in 2023, and 154 new RCS routes were awarded under UDAN 4.2 & 5.0., Growth in Air Passenger Traffic: India’s domestic air passenger traffic touched a record high, with 4,56,910 domestic passengers flying on November 19, 2023, a 7.4% surge above pre-COVID averages, Expansion of Airport Infrastructure: The expansion work was completed at PPP airports, including the commissioning of the 4th runway and Eastern Cross Taxiway at Delhi Airport, and the commissioning of new T2 terminals at Bangalore and Hyderabad airports., Green Energy Initiatives: 66 airports across the country are now running on 100% green energy, reducing carbon footprint, and promoting sustainability, Flexible Drone Regulations: The Ministry notified the Drone (Amendment) Rules, 2023, providing an alternative arrangement for issuance of Remote Pilot Certificates (RPCs) and promoting the growth of the drone industry., Increased Traffic Growth: India’s domestic air passenger traffic grew by 26.98% in 2023, with the number expected to reach 164-170 million by the end of the 2024-2025 fiscal year, Enhanced  Fleet Size: The fleet of Indian carriers has expanded to over 800 planes, including more than 60 wide-body aircraft.

Analyzing these developments in conjunction with the efforts by both Ministries shall help us to visualize the Way Forward for 2025.  The growth in air connectivity and airport infrastructure has complemented the tourism initiatives, making it easier for tourists to travel to and within India. Similarly, tourism initiatives have promoted the growth of the aviation sector, with increased demand for air travel.

  The Way Forward for 2025

  • Increased focus on sustainability, with a focus on reducing carbon emissions and promoting eco-friendly practices.
  • Expansion of airport infrastructure, including the development of new airports and the expansion of existing ones.
  • Growth of regional connectivity, with the Indian government’s UDAN scheme promoting air travel to smaller towns and cities.
  • Increased investment in MRO services, supporting the growth of the aviation industry.
  • Development of new tourist destinations and circuits, including the promotion of rural and eco-tourism.
  • Increased focus on digitalization, with the use of technology to enhance the tourist experience and promote tourism.

Upcoming Projects and Initiatives

  • The Ministry of Civil Aviation has announced plans to develop 100 new airports by 2025, with an investment of over ₹1 lakh crore.
  • The Ministry of Tourism has launched the “Tourism Infrastructure Development Fund” to support the development of tourism infrastructure in the country.
  • Advanced air mobility will decongest cities, cut travel times, and enable cleaner, faster transport; and India is working on this, at par with the world.  India is building infrastructure and guidelines for electric vertical take-off and landing aircraft with key projects such as the Bangalore Airport partnership.
  • Drones are revolutionizing Agriculture and remote healthcare; helpful in disaster relief and women’s empowerment via tech-driven initiatives., such as Drone Didi and Lakhpati Didi.

  
Overall, both, the civil aviation and tourism sectors are poised for continued growth and development in 2025, driven by increasing demand, expanding infrastructure, and a focus on sustainability.  Advanced Air Mobility (AAM) is no longer a distant aspiration; it is a rapidly emerging reality poised to revolutionize transportation, enhance connectivity, and drive sustainable economic growth.

Minister of Civil Aviation, shared India’s vision and efforts in this transformative journey, on various national and international platforms.  This reflects India’s dedication to fostering cutting-edge solutions that benefit urban and rural communities alike.

India’s transport and logistics sector has witnessed unprecedented growth and transformation over the past decade, driven by the visionary leadership of Prime Minister Narendra Modi. Civil aviation and Tourism, in particular, have emerged as a key enabler of connectivity, economic growth and social integration. Jai Hind.

G.S. Bawa is a Senior Aviation Consultant & Advisor. A Former General Manager, Airports Authority of India, he is a highly accomplished aviation professional with decades of experience in airport management, economic planning, corporate planning, public relations, and general administration. Through his expertise in domains, such as Airport Planning & Development, Economic Planning, Statistical Analysis & Traffic Forecasting, Public Relations, International Cooperation, and Training & Development; as a seasoned aviation professional, G.S. Bawa offers strategic guidance and expertise to aviation organizations, leveraging his vast experience is his forte.  






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