The projections are based on the conservative, Gross Domestic Product (GDP) growth rate of six to seven per cent annually, the Confederation of Indian Industry (CII) said in an aviation report prepared by the National Council for Applied Economic Research (NCAER).

Calling for private sector participation in the sector, the report says airports and airlines should be privatised completely. Private sector presence will help to reduce infrastructural constraints, inefficiency and lack of resources to a large extent. According to the report, growth in air transport, including passengers and cargo, is closely associated with GDP growth.

The report said that for one per cent increase in GDP, domestic passengers were expected to increase by one per cent and international passengers by 1.3 per cent.

The study said 88 million passengers (including domestic and international) were expected to pass through airports in the country in 2010, from the current 36 million, an increase of 144 per cent. Both domestic and international cargo transportation were also expected to increase substantially, the CII said.

CII said that out of the 120 national airports, only 61 are operational and the busiest 10 among them accounted for 80 per cent of the total domestic passenger traffic. India, therefore, does not require any new airports at new locations but need significant improvement of the existing ones.

The aviation sector should also explore collaborating with air taxi operators for low-density international routes, the report added.

According to the report, restructuring of the regulatory system with the DGCA and overseeing technical and safety aspects was important for the aviation sector.

Stating that poor aviation policy was responsible for the sub-optimal role of the domestic aviation industry, CII said simpler procedures, rules and regulations and minimal governmental restrictions were needed to facilitate growth and development of the sector.