AVIATION sector to Fly High

- Sandeep Gulati

Managing Director, Egis in India

 A recently released World Bank report stated that our country needs to invest USD 840 billion over the next one-and-a-half decade into urban infrastructure to accommodate the burgeoning population. Infrastructure development is crucial if India is to achieve its USD 5 trillion economy target by 2025. In the last year, the Government has launched the National Infrastructure Pipeline (NIP) and other initiatives such as 'Make in India' and the production-linked incentives (PLI) scheme to boost the development of this sector.

The government further expanded the NIP to 9,335 projects in the later part of 2022. Around 217 projects worth Rs 1.10 lakh crore (USD 15.09 billion) were completed as of 2020. It further, also expanded the National Monetisation Pipeline, Bharatmala Pariyojana, changes in the Hybrid Annuity Model (HAM) and fast allotment of asset monetisation to catapult the road construction activities in the country.

From the airport infrastructure perspective, despite geopolitical tensions, the Covid 19 pandemic, rising fuel prices, etc, air traffic in India and around the world saw a marked surge. In the last few months, airports in India was chalk a block with passengers making the most of the holiday season, which can be attributed to the post pandemic pent-up travel demand. To accommodate the growing numbers, many major airports are currently focusing on capacity expansions in 2023.

Additionally, this trend is not just confined to the airports located in the metro cities. Even tier-2 and tier-3 cities are contributing to the growth numbers, with the government subsidizing flights to underserved airports through its UDAN scheme. Airlines too are realising the growth possibilities of regional connectivity.

To aid airport infrastructure development, including upgrades as well as building new airports, the government and the private sector is planning to spend Rs 980 billion in the next few years. The government also indicated approval to 21 greenfield airports pan India and the Aviation Ministry is hoping to add nearly 80 more airports in the next five years.

The Indian air cargo sector is also among the world's leading marketplace for indigenous and international players. Growing cargo-handling infrastructure, demand for quick deliveries, growing commerce and increase in the number of flights are key contributors to the growth matrix.

Right from adopting new-age technologies such as AI, Block Chain, IoT and Data Science among others to e-commerce, flourishment in freighters, Greenfield airports and air freight stations, sustainable business operations and paperless transactions, infrastructure development of facilities such as cold storages for transportation of perishables, and freighters, the air cargo sector has come a long way, even facing the odds of the pandemic over the last two years.

Technology developments

In terms of technology adoption, the Air Traffic Management industry, off late, has been seen embracing blockchain technology in a major way. Over the coming years, Air Navigation Service Providers (ANSPs), suppliers and IT, big data and tech companies will all join the ATM blockchain buzz.

The travel industry is essentially dynamic, networked and always on. As such, data sharing is absolutely crucial and hence, the industry is perfectly poised to leverage multiple capabilities that are offered by blockchain. The technology offers decentralisation, data integrity, security, traceability and collaborative decision-making. Going forward, the airline industry will increasingly use blockchain to optimise their loyalty programs, automate processes and reduce the use of paper based systems such as e-tickets, smart contracts, billing, optimize ground operations and augment tracking and safety measures.

Also, data obtained from satellites are used extensively in aviation and urban planning. Now, an ESA study titled, SUPER (Supporting UAM Planning with EO Resources) is aiming at using Satellite Earth Observation (SatEO) and Satellite Navigation (SatNav) technologies/data for UAM infrastructure planning and integration into public transport, as well as in the planning and monitoring aspects of UAM operations.

Air Traffic Management industry is also looking at delivering air traffic services remotely using remote or digital towers. Even before COVID 19 that normalised remote working, Sweden's first airport relocated its air traffic controllers 150 km away, five years ago. Recently, they built an airport without a tower, using just a remote control.

India can learn from it as the construction and refurbishment of a digital tower centre is much easier to do than doing the same for a physical tower as it doesn't involve inefficient space needed by the shaft of a conventional tower. Besides, a digital tower centre requires 10-20% less CO2 emissions per sq m for construction, and also less floor space - as much as 50% less depending on what offices the building is housing and what efficiencies can be made.

Besides, we also saw a direct correlation between remote working and carbon emissions. For instance, the national environment agency in France (ADEME) found in 2011 that transferring 1 GB of data produced 19 kg of CO2. This is much higher than similar figures calculated in the US, where 1 GB of data produced 3 kg of CO2. A more recent ADEME study revealed that one minute of videoconferencing would emit 1 g of CO2 (approximately 0.4 kg per GB.

It may be concluded that while many key innovations have already been introduced in the aviation industry, many new techs will be developed to simplify the process and increase the stability of the supply chain. Our future is about 'glocalization—an amalgamation of global with local and regional consideration. A global megatrend for the coming years is sustainability. There will be a surge in demand for eco-friendly products. Apart from this, systems and processes will be playing a significant role in the demand-supply model across verticals and industries.

Hits: 1