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Govt to set up satellite accounting system for aviation

Civil aviation secretary Dr SNA Zaidi on Friday announced plans to set up a satellite accounting system to quantify the sector's contribution to the country's GDP.

, ET Bureau|
Last Updated: Jan 08, 2011, 05.59 AM IST|Original: Jan 08, 2011, 05.59 AM IST
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NEW DELHI: With the aviation sector becoming the growth indicator of the Indian economy, civil aviation secretary Dr SNA Zaidi on Friday announced plans to set up a satellite accounting system to quantify the sector's contribution to the country's GDP.

“We have requested the Central Statistics Organisation to help us out with the satellite accounting system so that we can assess the sector’s contribution to the country’s GDP,” he said at the II National Aviation Economics and Statistics Workshop organised by infrastructure company GMR in the capital.

According to industry experts, the per capita amount spent by a country’s population on travelling is a growth indicator of the country. With 9-10 % growth forecast for India and a subsequent increase in the disposable income, the aviation sector has become an important growth indicator. Industry studies have said that developed countries record more air trips per capita. For eg United States has around 2.5 trips per year per capita with a population of about 309 million, whereas India has under 0.5 trips per capita per year, even though it has a much larger population.

Admitting that India still doesn't have country-specific traffic forecast models, he emphasised how data collection was necessary to make better forecasts for aviation projects.

“The entire industry is based on demand and capacity forecasts. Any wrong projections cause economic loss to operators and puts consumers on the receiving end.” In this context, he pointed out the examples of the newly-constructed Amritsar and Bangalore airports, where demand outstipped capacity by the time they were complete on account of wrong estimation of demand.

“Collection of data may be time consuming and costly, but it is the single fact that makes or mars a project.“

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