Not much to cheer about for aviation sector: Experts

With the NDA government set to complete a year in office, aviation industry experts say the sector hasn't had much to cheer about during this period as the much-needed reforms have either been in a go-around mode or in holding pattern.
The government, in its very early days, had vowed to transform the industry by proposing several measures to reform and revive the sector.
Among the proposed measures were a draft aviation policy, lifting the curbs on foreign operations by the Indian carriers, corporatisation of the state-run AAI and Pawan Hans, creation of air navigation services, privatisation of more airports and reviving the fortunes of Air India. However, they are yet to take a decisive shape.

"The Indian aviation industry had lots of hope from the Modi government given its pro-reform tilt, but a year later nothing much has happened on the ground despite good intentions and bold statements," says Amber Dubey, Partner and India head for aerospace and defence at global consultancy KPMG.
Civil Aviation Minister Ashok Gajapathi Raju had on May 29 last year said, after getting at the helm of Rajiv Gandhi Bhawan, "We will strive to create a level-playing field for all the players and make the aviation sector more people- oriented."
"Aviation industry was eagerly looking forward to a new transformational approach with a clear strategic roadmap which will bring the industry out of its structural mess, however, till date, nothing significant is visible and clarity in key and important strategic issues is missing," says Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA) India head Kapil Kaul.

Kaul says that the industry had expected that the new government would restore transparency, remove the negative fiscal regime on airlines, demonstrate strategic clarity in policy formation besides preparing a realistic and achievable long-term roadmap and strengthening safety and regulatory institutions to strategic levels and deliver an effective governance model.

"CAPA believes that this government has the intent and willingness to deliver on critical aviation reforms but it is extremely important that strategic clarity is visible and intent is converted into effective implementation," he adds.
The draft aviation policy, which the government unveiled last year, clearly showed lack of involvement of different stakeholders before coming up with an important policy document, Dubey says, adding reports, however, suggest that the ministry is now getting another committee to improve upon the draft policy created by the earlier panel.

According to Kaul, the sector needs a clear statement from Prime Minister Narendra Modi that a robust aviation industry is critical to India's growth as a strong global economy.
"Should Indian aviation receive the right attention from the Modi government in its second year, it has the potential to grow by 18-20 per cent continuously for the next four years, giving a massive fillip to investments, jobs and tourism," Dubey adds.