New Delhi: Civil aviation in India hit further turbulence in 2012 as the stubbornly high jet fuel prices, interest costs and strikes troubled the financially-stretched industry. The grounding of Kingfisher Airlines exemplified matters.
Civil Aviation Minister Ajit Singh's efforts to pull the industry out of the crisis and allow foreign airlines to pick stakes in Indian carriers also proved too little too late as taxes on fuel, airport charges and an economic slowdown made the measure ineffective.
The slew of government reforms such as a "turnaround" package for Air India, allowing domestic carriers to directly import fuel, renegotiations on bilateral air rights and the permission to foreign airline could not stabilise the situation.
"Overall, 2012 has been a mixed bag with long-term reforms and medium- term pain," said Amber Dubey, partner and head-aviation at global consultancy KPMG.
"Yet, for India, with an air travel penetration of just 48 trips per 1,000 population, steadily growing economy and rising aspirations, the long term outlook remains positive," Dubey told IANS.
25/12/12 IANS/Business Today
