With India’s airlines still mired in losses, the country’s new budget announced on July 11, did little to address some of the aviation industry’s most pressing concerns. It offered nothing on reforms in taxation on aviation fuel and maintenance, repair and overhaul–long issues of contention the aviation industry hoped India’s new government would address. In fact, the finance minister’s budget speech did not once allude to aviation, raising concern that the new government will be as ineffectual in removing obstacles to industry growth as its predecessor.
The entry of domestic startups–AirAsia India and soon to be launched Tata SIA—appears likely to exacerbate the situation as they released more seats in a market where supply already exceeds demand. The only good news in the budget seemed an acknowledgement that with “air connectivity out of reach for a large number of aspirational Indians,” a plan for development of new airports in Tier 1 and Tier 2 cities should proceed through the Airports Authority of India or private-public partnerships.
14/07/14 Neelam Mathews/AIN Online
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The entry of domestic startups–AirAsia India and soon to be launched Tata SIA—appears likely to exacerbate the situation as they released more seats in a market where supply already exceeds demand. The only good news in the budget seemed an acknowledgement that with “air connectivity out of reach for a large number of aspirational Indians,” a plan for development of new airports in Tier 1 and Tier 2 cities should proceed through the Airports Authority of India or private-public partnerships.
14/07/14 Neelam Mathews/AIN Online
