India set to be third largest aviation market in the world: IATA

Q.  According to an IATA report, India is the ______ largest aviation market in 2025.
- Published on 27 Oct 17

a. Fourth
b. Fifth
c. Sixth
d. None of the above

ANSWER: None of the above
India set to be third largest aviation market in the world: IATA India is set to become the third largest aviation market the International Air Transport Association (IATA) said in a report on Tuesday.

IATA, which represents about 85% of the global airline traffic, projects India to overtake the UK to become the third largest air passenger market by 2025.

China will be the top market, followed by the US.

In a similar report last year, IATA had projected India to overtake the UK by 2026.

The biggest driver of demand will be the Asia-Pacific region.

The region will be the source of more than half the new passengers over the next two decades.

The point at which China will displace the US as the world's largest aviation market (defined as traffic to, from and within the country) has also moved two years closer since last year's forecast.

By 2036, India will have about 478 million airline passenger traffic, which will be more than that of Japan (just under 225 million) and Germany (just over 200 million) combined.

India's current passenger traffic is about 141 million.

The most critical number will, however, be the doubling of overall passenger traffic globally from 4 billion to nearly 7.8 billion passengers in 2036 on a 3.6% compound annual growth rate (CAGR).

All indicators lead to growing demand for global connectivity. The world needs to prepare for a doubling of passengers in the next 20 years.

Indian airlines have over 800 planes on order and in the next five years alone are set to add 350-400 aircraft. All Indian airlines put together have a fleet of around 500 aircraft currently.

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