Indian Aviation Needs a Strong and Steady Tailwind
- The growth in aviation has been hindered by regulations, tough barriers for new entrants, high fuel prices due to high taxes, and inefficient public sector airports which have led to monopoly airports that extort the airlines due to absence of robust competition.
- Lack of a long-term visionary strategic policy for airlines as well as for every sector in the aviation industry.
- There were annual sales of 140 million tickets in the pre pandemic era. However, this number is not completely accurate as this includes 35 to 40 million frequent flyers who form the bulk of the sales.
- The final count shows that only 4% of the population can afford air travel, which places India just above the poorest nations in Africa. Whereas the fellow developing nations such as Brazil and China are much further ahead.
Need for Aviation
- Aviation sector helps in equitable economic growth, will make the country globally competitive and to change the situation in development in the parts of India that are struggling with poverty and unemployment.
- Passenger airlines and air cargo overcome geographical restrictions and connect remote areas that are alienated from the mainstream.
- They can drive investment deep into the country, giving people access to markets.
- It will also give a boost to tourism which is a major sector which not only brings in economic development but also brings foreign currency as well.
- Increase the Cargo handling capacity of Indian Airports.
- Ensure greater connectivity of the Airports by integrating them with roads and railways.
- Reduce the expenditure incurred by the Airlines through large scale reforms in the air cargo, airports, aviation fuel taxes (State and central, which in India are among the highest in the world) and Maintenance, Repair and Overhaul (MRO).
- Similarly, the market of chartered aircrafts has not had much growth in the previous years. This has led to lack of employment to several Pilots and other support staff for these aircrafts.
- We must amend India’s Aircraft Act, 1934 and Aircraft Rules, 1937, to keep pace with the requirements of the modern aviation industry.
- India’s statutory regulatory authority, the Directorate General of Civil Aviation, needs to be modernized, well-staffed, motivated and incentivized.
Source The Hindu
For more updates, Click Here