Flying through turbulent times

New Delhi: Aviation sector to improve over the next 12 months despite its share of problems.
The civil aviation sector has been in the news for the wrong reasons in the recent past. Most private carriers made sharp fare hikes in the Diwali season and a similar pattern was anticipated over the Christmas- New Year period. If the current trend in rising crude prices is maintained, fares will rise for sure in 2011.
In fact, the flying-experience is very likely to get more expensive in 2011. Apart from rising fuel costs, User Development Fees (UDF) have been hiked at quite a few airports, including smaller centres like Ahmedabad, Mangalore, Amritsar, Udaipur, Jaipur, Trichy and Vishakhapatnam, after the new AERA (Airports Economic Regulatory Authority) took charge.
There was plenty of other action as well. Kalanithi Maran took control of the profitable Spicejet. In the meantime, Kingfisher lurched from crisis to crisis as its dues to oil suppliers mounted. The red ink also continued to accumulate on Air India’s balance sheet .
On the ground, expansion and modernisation of the airport network continued. Various non-metro airports are being modernised. After a lot of back-and-forth, the environmental ministry has finally cleared the Navi Mumbai airport with a revised project plan that should minimise environmental damage to the local mangroves.
19/12/10 Devangshu Datta/Business Standard

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Categories: Indian Aviation- In General Dec 2010