What ails the general & business aviation industry?
The three broad reasons are constrictive regulations, irrational taxation and insufficient infrastructure. These have caused the GA/BA operators to remain highly fragmented. To illustrate, on the commercial side there are more than 50 non-scheduled operators with just one aircraft, around 25 operators with two aircraft and another 10 to 15 with 3 aircraft. Add to this the private category operators and the fragmented picture of the industry worsens. Had our operators managed to grow their fleets, it would have brought in cost efficiencies and other benefits that accrue from economies of scale. Some operators have had to shut shop, many are mulling it, and several in the midst of selling off their aircraft to reduce costs. This is direct fallout of previous government policies. Signs from the NDA government were positive, and we were hopeful that a conducive and growth oriented regime would be put in place with the new national civil aviation policy. However, the new draft policy appears disappointing as none of our representations appear to have been met.
Last two years have seen a series of regulatory policies. How do they affect for the industry?
Our industry has faced a lot of operational complexities, which can all be attributed to the regulator having a non-consultative rule making approach. Take just one example wherein additional cabin crew requirements applicable to scheduled-airline operators were made compulsory for GA/BA operators without taking into account that we carry mostly 8 to 10 passengers and not 100-plus as the airlines do. It took four years for the understanding to seep in and relief to come for the industry. There are many more such examples. The point is that all this happens only because there is a non-consultative approach in rule making. Thankfully we see this as changing for the positive with the regulator, but it is still very sporadic.
12/11/15 Shahkar Abidi/dna
To Read the News in full at Source, Click the Headline
The three broad reasons are constrictive regulations, irrational taxation and insufficient infrastructure. These have caused the GA/BA operators to remain highly fragmented. To illustrate, on the commercial side there are more than 50 non-scheduled operators with just one aircraft, around 25 operators with two aircraft and another 10 to 15 with 3 aircraft. Add to this the private category operators and the fragmented picture of the industry worsens. Had our operators managed to grow their fleets, it would have brought in cost efficiencies and other benefits that accrue from economies of scale. Some operators have had to shut shop, many are mulling it, and several in the midst of selling off their aircraft to reduce costs. This is direct fallout of previous government policies. Signs from the NDA government were positive, and we were hopeful that a conducive and growth oriented regime would be put in place with the new national civil aviation policy. However, the new draft policy appears disappointing as none of our representations appear to have been met.
Last two years have seen a series of regulatory policies. How do they affect for the industry?
Our industry has faced a lot of operational complexities, which can all be attributed to the regulator having a non-consultative rule making approach. Take just one example wherein additional cabin crew requirements applicable to scheduled-airline operators were made compulsory for GA/BA operators without taking into account that we carry mostly 8 to 10 passengers and not 100-plus as the airlines do. It took four years for the understanding to seep in and relief to come for the industry. There are many more such examples. The point is that all this happens only because there is a non-consultative approach in rule making. Thankfully we see this as changing for the positive with the regulator, but it is still very sporadic.
12/11/15 Shahkar Abidi/dna
