Need of the hour for Aviation Industry: A Comprehensive Policy

As India is moving towards becoming the world’s third biggest aviation market, airline association believes that a comprehensive policy for the aviation segment should be formulated. Tony Tyler, Director General and CEO of IATA remarked that aviation and aviation related tourism has carved a place for seven million Indian jobs and USD 23 bn of India’s GDP. There is a tremendous possibility of growth. However, the challenges have to be overcome.

There are certain airlines that have been able to pull profits out of the business and on the other side sector-wide losses in India are still expected to cross USD1 bn, this year. Despite of the fact of that flight Reservations in Delhi NCR, Mumbai, Bengaluru, Kolkata, Chennai and other business cities are still on the high-demand side.

So what’s holding us back? Possibly, the reason could be the arduous regulatory framework, processes, debilitating taxes, and expensive infrastructure.

On the occasion of Aviation Day India, which was organized by IATA, India’s Ministry of Civil Aviation and Confederation of Indian Industry, Tyler indicated three areas critical of the aviation sector, and they need to be improved. The areas are:

• Taxation
•  Fuel Pricing
• Permission to be granted to the Airports Economic Regulatory Authority for working independently

Though the regulations are backed by good intentions, they are pulling the growth-meter downwards as they are not aligned well with the global standards. This is further hampering the sales of International Tour Packages from India in addition to causing hindrance to the scope of airlines business. 

Current legal constraints are preventing AERA’s recommendation of 78% reduction in airport charges in Delhi. For optimizing growth of the aviation sector in India, IATA has proposed privatization of airports in Ahmedabad, Kolkata, Jaipur and Chennai.

Looks like Tyler has a stuffed list of to-dos for augmenting the revenue-mapping of the aviation industry. Let’s cross our fingers, wait and watch how government responds to these concerns.

TravelSpider is an IATA, ASTA, TAAI & DOT Approved Travel Agents in Delhi NCR