India could emerge as the third largest aviation market by 2029, from a ranking of 12th in 2010, according to a new report from the Airports Council International (ACI) at the recent India Aviation show in Hyderabad. But the country needs a regulatory framework to encourage investment, promote safety and facilitate the development of tourism, according to Rafael Echevarne, the ACI’s director for economics and program development. With budget carriers now selling more than 70 percent of airline seats in India, the country needs more investment in no-frills airports for smaller cities with a growing passenger base, added consultant KPMG during a conference at the show. Indian civil aviation minister Ajit Singh acknowledged his concern that 2012 will prove a challenging year in which “[the government should] encourage the private sector to participate.” But Indian civil aviation policy has languished in indecision for the last four years and, without indicating a timeline for change, Singh would say no more to AIN than, “discussions are ongoing.”
