Sunday, January 27, 2019

Aiming for the heavens

The past 25 years have been marked by far-reaching changes in Indian aviation including the re-entry of private airlines, private partnerships in airports, and a huge leap in the market, with India slated to be the third-largest aviation market by 2022.

While the genesis of the changes can be traced back to Parliament repealing the Air Corporation Act in 1994 which led to the re-entry of private airlines, it was the 2003 report ‘A roadmap for the civil aviation sector’ — popularly known as the Naresh Chandra Committee report — that formed the bedrock for the reforms in the sector. Prepared by a committee chaired by former Cabinet Secretary Chandra, the report focussed on aspects such as air transport services, airports, air traffic control and the institutional framework for the aviation sector.

“We looked at the future of civil aviation for the next 30-40 years, and took a complete and comprehensive view,” says V Subramanian, member secretary of the committee

The most visible recommendation of the report, and the first to be implemented, was allowing domestic private airlines to fly abroad. This saw Air Sahara and Jet Airways launch international operations in 2004.

In the same year, low-cost flying took off in India with Air Deccan starting operations. Others followed, including current market leader IndiGo, SpiceJet and GoAir.
27/01/19 Ashwini Phadnis/Business Line

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