Speech By Her Excellency The President Of India, Shrimati Pratibha Devisingh Patil At The Inauguration Of The 4th International Civil Aviation Negotiation Conference

Ladies And Gentlemen,

I Am Pleased To Inaugurate The Fourth Air Service Negotiation Conference - Ican 2011 Jointly Organized By International Civil Aviation Organisation And The Government Of India. I Warmly Welcome Delegates To Mumbai. The Overwhelming Participation Of Countries In This Conference Underscores The Commitment Of International Community To Promoting Safe And Orderly Civil Aviation Systems.

The Rapidly Expanding Aviation Sector Handles 2.5 Billion Passengers Across The World In A Year; Moves 45 Million Tonnes Of Cargo Through 920 Airlines, Using 4,200 Airports And Deploying 27,000 Aircraft. Such A Large Scale Global Operation Requires That Experts Of Member States Of International Civil Avaition Organization Must Gather Frequently, To Evolve Consensus And Co-ordination On Various Issues To Ensure A Universally Safe And Secure International Aviation Sector. Moreover, The Many Stakeholders Of The Aviation Sector, Be It Equipment Manufacturers, Or Software Developers, Or Infrastructure Builders Or Airport Services, Should Interface With Each Other For The Sustainable Growth Of The Sector.

Aviation Plays An Important Role In The Economic Development Process Of Countries. Flying Is No Longer The Prerogative Of A Few Privileged, But An Option For An Increasingly Broader Section Of Society. Airlines Could Be Goodwill Ambassadors To Bring Nations And Peoples Together. For This Innovative And Flexible Business Modules May Be Evolved, Enabling Greater Connectivity Between Countries To Promote People To People Contacts, As Well As Trade And Business. To Achieve This, Governments Must Continually Negotiate New Bilateral Treaties, To Allow For And Expand Access To New And Emerging Markets For Their Carriers. Ican Provides A Very Convenient And Essential Platform, For A Large Number Of States To Negotiate These Bilateral Agreements Quickly, Efficiently And With Saving Of Time And Expenditure. The World Air Transport Conference 2003 Paved The Way For This Efficient System Of Air Services Negotiations, And I Compliment Icao Leadership For Promoting Ican Successfully In Partnership With Host Countries.

In Keeping With Global And Asian Regional Trends, Air Traffic Movement In India Too, Has Witnessed Unprecedented Growth In The Recent Past, Affecting Lives Of People From All Walks Of Life. In The 1990s, For Example There Were Very Few Domestic Connections Between The Metro Towns - Delhi, Mumbai And Others. There Were Long Waiting Lists For International Flights Particularly During The Busy Seasons. Carriers Were Limited. Deregulation Of The Domestic Sector And Liberalisation Of Bilateral Traffic Rights In The Past Decade Has Brought Choices Of Carriers, Choices Of Timings And Fares. There Is A Sea Change From 500 Departures Per Week In The Country In 1994 Before Deregulation, To Nearly 15,000 Departures Daily - A 30 Times Jump. Today 87 Foreign Airlines Fly To And From India And 5 Indian Carriers Fly To And From 40 Countries. In The Last Decade, Domestic Air Traffic Has Quadrupled From 13 Million To 52 Million And International Traffic More Than Tripled To 38 Million. A Similar Trend Is Observed In The Cargo Sector.

Growth In Traffic Has Led To Changes In The Methods Of Operating Flights And In Developing Related Infrastructure. A Key Trend In The Business Model Of Indian Carriers In The Domestic Operations, Is That Domestic Traffic Is Rapidly Shifting To The Low Cost Carrier Model. From A Level Of About 1 Percent In 2003-04, It Today Exceeds 70 Percent Of Total Domestic Traffic. Today In India, About 60 Percent Of Air Traffic Is Being Handled In Airports Under The Public Private Partnership Model At Delhi, Mumbai, Hyderabad And Bangalore And The Rest 40 Percent, Is With Airports Owned And Operated By The Airports Authority Of India. During The Period From 2005 To 2010, Us $10 Billion Has Been Invested In Airport Development In The Country, And The Private Sector Played An Unprecedented Role During The Last 5 To 6 Years, By Acting As A Key Contributor For The Development Of Ppp Airports. In Next Five Years, We Plan To Expand The Airport Network And Provide Connectivity To Tier Ii And Iii Cities. In Metro Cities Where The Existing Airport Cannot Accommodate Future Growth, A Second Airport Is Being Planned In The Same City. New Mumbai Is A Case In Example. As A Policy, We Will Continue To Build And Replicate The Ppp Model With Other Airports. India Has A Well Defined Airport Policy And A Greenfield Airport Policy Based On Mixed Models Of Development Of Airports.

With Restructuring Airports And Development Of Greenfield Airports, A Strong Need Was Felt To Have An Economic Regulator To Ensure A Level Playing Field, To Promote Competition, Protection Of Consumers And Viability Of Airports. The Process Of The Regulator Will Ensure Benefit To All Stakeholders And Better Service Levels. One Of The Key Achievements Of India In The Last Decade, Has Been To Set-up An Independent Regulator For Economic Regulation Of Airports By An Act Of Parliament, With Appropriate Provision Of An Appellate Body.

We Are Also Looking At Further Developing Several Airports In State Capitals, In Tourist Centres And Business And Commercial Centres. In The City Side Of These Airports The Private Sector Will Be Invited For Developing Hotels, Shopping Complexes, Cargo, Parking Lots, And Food Courts, Among Others. This Offers An Opportunity To Investors To Become Partners In This Process Of Making Airports Friendlier For The Traveller.

Ladies And Gentlemen,

The Potential For Growth Of Civil Aviation In India Is Huge. India Is Already The 9th Largest And The Fastest Growing Aviation Market In The World. It Is Expected To Be Amongst First Five In The Next 10 Years, But Yet Global Comparison Of Air Travel Penetration Shows That India At, 0.04 Airtrips Per Capita Per Annum, Stands Far Behind Developed Countries With More Than 2 Airtrips Per Capita Per Annum. As The Economy Grows, Disposable Incomes Of People Rise And The Value Of Time Becomes More Precious, Air Travel Increases. Recent Estimates Suggest That Domestic Air Traffic Will Touch 160 To 180 Million Passengers Per Annum, In The Next 10 Years And The International Traffic Will Exceed 80 Million Passengers Per Annum. India Is Thus Being Looked Upon By Aircraft Manufacturers And Allied Aviation Industries, As An Important Destination For Doing Business.

I Do Hope That Provision For These Growth Figures Reflect In The Agreements Being Made In The Bilateral Negotiations That Are Shortly Going To Begin In This Ican Conference. These Must Realistically Take Into Account The Needs Of The People In Our Respective Countries And Allow For Competition And Improvements In Quality.

Finally, My Best Wishes Are With All The Participants For The Success Of Ican 2011, Which Would Lead To The Opening Up Of New Routes Beneficial Both For Passengers As Well As The Industry. I Hope You All Have A Pleasant And A Memorable Stay In Mumbai.

Thank You.

Jai Hind.