Friday, January 01, 2016

Aviation 2015: Mixed bag of Take offs and Off takes

The Civil Aviation Ministry has given a green signal to four Greenfield airports which includes an Rs 1,378 crore international airport at Dholera in Gujarat. The project, having already received the Environment Ministry‘s approval, is expected to help achieve the goal of allaying the load of air traffic at the current Ahmedabad airport, as per published data.

Despite such positive developments, the aviation industry has been under the weather, considering the consistent passenger resentment arising from scores of below-par flying experiences. Taking the aviation sector’s trend and performance in 2015 and years prior to that into account, with capacity glut, cut-throat competition and input costs hitting the roof, the aviation industry has a long way to go. Add to that, the imperiled viability of the sector during the year, thanks to the policy and regulatory environment that sounds less than optimistic. Consistently mounting debts which stand more or less equal to the airline revenue, amounting to a whopping USD11.3 billion and losses around USD10 billion barring IndiGo and GoAir, helped little to buoy the aviation industry in 2015.

However, the fact remains undeniable that India’s sheen as a potent market for the aviation industry has not yet waned. Going by the latest estimate given by industry trade group, International Air Transport Association (IATA), India’s pace of growth in aviation has been phenomenal, and it would be safe to regard the country as the fastest growing market for aviation.
01/01/16 Arpita Saxena/IIFL
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