Even though the government failed to come out with its much touted national aviation policy that was expected by the end of the year to the great disappointment of the industry, 2015 was a year that saw several progressive changes in the sector both in terms of profitability as well as market revival. While return to profitability boosted the revival hopes of loss-making airlines, great success of an initial public offer (IPO) and friendlier foreign direct investment norms cheered the investor community during the year.
The year saw fuel cost at its lowest, bringing relief to all airlines, especially cash-strapped Jet Airways and Air India. While a reduced airfare also helped an overall revival in the market with a high double digit growth in passenger traffic, the success of Indigo’s public offer helped build confidence of aspiring fund raisers like GoAir and SpiceJet.
The release of the draft national civil aviation policy in October, despite reviving the hope of the industry by offering positive recommendations for infrastructure development and route expansion reforms, couldn’t sustain the enthusiasm as the final policy is still awaits cabinet approval.
The draft policy indicated removal of the 5/20 norm, which stipulates a minimum five years of operations and a fleet of 20 aircraft for oversees flying rights and pegged a minimum tariff of Rs 2,500 per ticket for each flying hour. The policy recommendation also envisaged expanding the domestic travel to touch at least 300 million passengers by 2022 emphasising the potential of the local aviation.
30/12/15 C H Unnikrishnan/Business World
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The year saw fuel cost at its lowest, bringing relief to all airlines, especially cash-strapped Jet Airways and Air India. While a reduced airfare also helped an overall revival in the market with a high double digit growth in passenger traffic, the success of Indigo’s public offer helped build confidence of aspiring fund raisers like GoAir and SpiceJet.
The release of the draft national civil aviation policy in October, despite reviving the hope of the industry by offering positive recommendations for infrastructure development and route expansion reforms, couldn’t sustain the enthusiasm as the final policy is still awaits cabinet approval.
The draft policy indicated removal of the 5/20 norm, which stipulates a minimum five years of operations and a fleet of 20 aircraft for oversees flying rights and pegged a minimum tariff of Rs 2,500 per ticket for each flying hour. The policy recommendation also envisaged expanding the domestic travel to touch at least 300 million passengers by 2022 emphasising the potential of the local aviation.
30/12/15 C H Unnikrishnan/Business World
