The civil aviation industry in India has witnessed consistent double-digit growth over the last four years. The Government’s focus on connectivity for all has been one of the key drivers propelling its growth and placing the civil aviation industry amongst the fastest growing industries in the country. The International Air Transport Association (IATA) forecasts India to become the third-largest aviation market in terms of passengers by 2024-2025, after China and the United States, surpassing countries such as the UK, Japan, Spain, and Germany.1
However, despite the market’s breakneck expansion over the past decade and a half, less than ten percent of Indians have ever flown in an aircraft. The industry also continues to face challenges and issues including an inverted tax structure, shortage of infrastructure, high Aviation Turbine Fuel (ATF) prices, slow growth in regional connectivity and shortage of trained manpower including pilots. An additional cause for concern is that every 3-4 years, a major airline goes defunct in the country.
The record mandate received by the PM Modi-led NDA in the recently concluded general elections provides a great opportunity for the government to address existing challenges and work towards realising the Aviation Vision 20402 put forward by FICCI and KPMG.
What needs to be done? At the outset, industry experts believe that a very comprehensive National Civil Aviation Policy, covering the most critical aspects of the aviation ecosystem, was created with strong industry consultation. With regional connectivity as the cornerstone, the policy provides direction for key elements like airlines, airports, cargo, ground handling and maintenance, repair & overhaul (MRO) besides aspects like aviation safety, financing and talent among others. What’s required now is the urgent implementation of the National Civil Aviation Policy to energise and boost the industry.
07/07/18 Palash Roy Chowdhury/Financial Express
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However, despite the market’s breakneck expansion over the past decade and a half, less than ten percent of Indians have ever flown in an aircraft. The industry also continues to face challenges and issues including an inverted tax structure, shortage of infrastructure, high Aviation Turbine Fuel (ATF) prices, slow growth in regional connectivity and shortage of trained manpower including pilots. An additional cause for concern is that every 3-4 years, a major airline goes defunct in the country.
The record mandate received by the PM Modi-led NDA in the recently concluded general elections provides a great opportunity for the government to address existing challenges and work towards realising the Aviation Vision 20402 put forward by FICCI and KPMG.
What needs to be done? At the outset, industry experts believe that a very comprehensive National Civil Aviation Policy, covering the most critical aspects of the aviation ecosystem, was created with strong industry consultation. With regional connectivity as the cornerstone, the policy provides direction for key elements like airlines, airports, cargo, ground handling and maintenance, repair & overhaul (MRO) besides aspects like aviation safety, financing and talent among others. What’s required now is the urgent implementation of the National Civil Aviation Policy to energise and boost the industry.
07/07/18 Palash Roy Chowdhury/Financial Express
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