India Airlines, Airports Brace for Growth with Higher IT Spending

By Juliet Van Wagenen | December 19, 2016
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India is investing in airline and airport IT
India is investing in airline and airport IT. Photo: SITA

[Avionics Magazine 12-19-2016] Airlines and airports in India are expected to rapidly ramp up their spend on new technology over the next three years to keep up with surging growth, which will see passenger traffic double to 370 million by 2020, according to a new report conducted by SITA. According to the report, the growth will position India as the world’s third largest aviation market.

To meet this growing demand airlines and airports are investing in technology to help bridge the capacity gap and accommodate more passengers. According to SITA’s 2016 India IT Trends Benchmark study, released today at the India ICT Aviation Forum 2016, all airlines in India expect to see IT budgets increase in 2017 compared to 2016. This contrasts markedly with global airline confidence on future IT budgets, with just over half expecting an increase while around a third will see no change in 2017. The remainder, globally, are braced for lower budgets.

Airports in India are similarly positive about IT spending with 80 percent of airports expecting an IT budget increase in 2017 over 2016. This compares to 58 percent of airports globally who expect an increase next year.

“Rapid growth is a positive challenge for India. While many Indian airlines and airports lag the rest of the world in the use of technology, there is tremendous opportunity and desire among air transport executives to bring the country in line with the rest of the world. This vital investment in technology will ensure that India can fully capitalize on the growth we expect to see in the next few years,” said Maneesh Jaikrishna, SITA vice president of India and subcontinent, speaking at the forum.

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