Context:

• The 81st Annual General Meeting (AGM) of the International Air Transport Association (IATA) and the World Air Transport Summit (WATS) was organized from 1 to 3 June 2025 at Bharat Mandapam Convention Centre, New Delhi.

Key Point:

India hosted the IATA AGM for the first time in 42 years; the last event was held in 1983.

Significance of the Event and Major Facts:

• Around 1700 participants from the global aviation industry attended this three-day conference, including CEOs of airlines, government officials, aviation regulators, and international media.
• India’s largest airline, IndiGo, hosted the event.
• The aim of the IATA AGM and WATS was to discuss economic, geopolitical, and environmental challenges facing the aviation industry.

India’s Aviation Ambition and Prime Minister’s Address:

• Prime Minister Narendra Modi delivered the keynote address at the summit on June 2, reiterating India’s commitment to becoming a global hub for aviation and innovation.
• He stated that by 2030, the number of air travelers in India would reach approximately 500 million, doubling from the current 240 million.
• Modi described India as an attractive destination for global aviation investment and termed the MRO (Maintenance, Repair, and Overhaul) sector as a rising “sunrise sector,” aiming to make India a global MRO hub by 2030.

Current Industry Status and Challenges:

• IATA Director General Willie Walsh projected a profit of USD 36 billion for the global airline industry in 2025, considered strong despite economic and geopolitical crises.
• He identified new taxes, rising charges, demand shocks, or stringent regulations as risks that could challenge the resilience of the aviation sector.
• He described India’s tax framework as complex and emphasized the need for greater clarity.

Themes of the World Air Transport Summit (WATS):

• Discussions at WATS included the financial landscape of the aviation industry, the role of aviation in India’s economic development, energy security, renewable energy and the production of Sustainable Aviation Fuel (SAF), financing for net-zero aviation emissions, global tax scenarios, payment costs, and innovation.
• The summit also presented Diversity and Inclusion Awards recognizing individuals and organizations promoting gender balance under IATA’s 25by2025 initiative.

Opportunities for India:

• This event provided an opportunity to showcase the rapid modernization and expansion of India’s aviation sector on a global platform, thereby promoting investment, technological innovation, and international collaboration.
• Approximately 370,000 people are directly employed in India’s aviation sector, which is linked to a total of 7.7 million jobs and an economic contribution of USD 53.6 billion (around 1.5% of GDP).

International Air Transport Association (IATA)

• IATA was established in April 1945 in Havana, the capital of Cuba.
• This organization was founded under the 1944 Chicago Convention and aims to promote the development of international air transport.
• IATA was formerly known as the International Air Traffic Association.
• It is the successor of a previous organization established in 1919, primarily a group of European airlines.
• Its headquarters is located in Montreal, Canada, while it also has an executive office in Geneva, Switzerland.
• The main objective of IATA is to serve and promote the development of the airline industry.
• It facilitates cooperation among airlines, sets standards, and helps develop safety, efficiency, and economic policies.
• Additionally, it plays a role in fare determination, service materials, aviation technology, and other related matters.
• IATA regularly organizes meetings for passenger and cargo services and convenes special sessions on critical issues such as currency, fuel, and taxation.
• This organization also issues airport codes (IATA codes), which are three-letter codes for all major airports and some railway stations worldwide, used in baggage tags and ticketing.
• Major Indian airlines such as Air India, IndiGo, and Vistara are members of IATA.
• IATA collaborates in India’s efforts toward digitalization of civil aviation, safety, and the development of green aviation policies.