The five years of the Modi government saw a lot of attention focused on the civil aviation space. The period saw the domestic aviation market witnessing double-digit growth for 52 months in a row, there were some big-ticket announcements like the UDAN scheme, and there was the passenger charter meant to give more power to the flying public.
On the flip side, aviation infrastructure, especially air traffic management, did not keep pace with air traffic demand and towards the end of Modi’s term, all the private airlines were in the red, with there being uncertainty about Jet Airways’ future.
Given these developments, and now that the country is in the process of electing a new government, FlightPlan looks at aviation during the five years of the NDA government.
According to Diogenis Papiomytis, Global Program Director, Commercial Aviation, Frost & Sullivan, if one is to compare the state of the industry in 2019 vis-à-vis 2014, the five years have been a mixed bag.
“The Regional Connectivity Scheme and reduction of aviation fuel tax to 11 per cent helped airlines double air traffic in five years. However, the government failed to resolve many of the issues faced by industry stakeholders in 2014. Air India is still a massive burden to taxpayers, States continue to charge separate aviation fuel taxes and Foreign Direct Investment continues to be restrained,” he points out.
The jury is out on whether this was a hit or a miss. Flagged off in April 2017 by the Prime Minister, the scheme is meant to give people in tier-II and tier-III cities a chance to fly at a ticket price of ₹2,500. Airlines operating under the UDAN scheme have to ensure that prices of at least 50 per cent of the seats are available at ₹2,500 for one hour of flying.
16/04/19 Ashwini Phadnis/Business Line
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On the flip side, aviation infrastructure, especially air traffic management, did not keep pace with air traffic demand and towards the end of Modi’s term, all the private airlines were in the red, with there being uncertainty about Jet Airways’ future.
Given these developments, and now that the country is in the process of electing a new government, FlightPlan looks at aviation during the five years of the NDA government.
According to Diogenis Papiomytis, Global Program Director, Commercial Aviation, Frost & Sullivan, if one is to compare the state of the industry in 2019 vis-à-vis 2014, the five years have been a mixed bag.
“The Regional Connectivity Scheme and reduction of aviation fuel tax to 11 per cent helped airlines double air traffic in five years. However, the government failed to resolve many of the issues faced by industry stakeholders in 2014. Air India is still a massive burden to taxpayers, States continue to charge separate aviation fuel taxes and Foreign Direct Investment continues to be restrained,” he points out.
The jury is out on whether this was a hit or a miss. Flagged off in April 2017 by the Prime Minister, the scheme is meant to give people in tier-II and tier-III cities a chance to fly at a ticket price of ₹2,500. Airlines operating under the UDAN scheme have to ensure that prices of at least 50 per cent of the seats are available at ₹2,500 for one hour of flying.
16/04/19 Ashwini Phadnis/Business Line
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