Aviation sector in India

Why in news?

India has one of the fastest-growing aviation sectors, with very serious safety issues.

What is the status of Aviation Sector in India?

• Growth- India's aviation industry has experienced significant growth in the past 9 years.
• Aviation market-India has become the third-largest domestic aviation market in the world and is expected to overtake the UK to become the 3^rd-largest air passenger market by 2024.
• GDP contribution-Indian aviation also contributed 5% of the GDP, creating a total of 4 million jobs. In addition to it, there is a 72 billion dollars gross value-added contribution to GDP by this industry.

The International Air Transport Association (IATA) projects that India will become the world's 3rd largest civil aviation market by 2026.

• Increase in operational airports- The number of operational airports in the country has doubled from 74 in 2014 to 148 in April 2023.

• Increase in passengers- The number of domestic passengers has also doubled from 60 million in 2014 to 143 million in 2020, and the number of international passengers has increased by almost 50%.

India’s airport capacity is expected to handle 1 billion trips annually by 2023

What are the concerns?

• Lack of trained pilots - There is a shortage of trained pilots, which can impact safety and cause delays.
• Safety concerns- Aircraft Accident Investigation Bureau has recommended for Runaway End Safety Area at Kozhikode’s Karipur airport following an air crash in 2020, this recommendation is still not implemented.
• Inadequate airline infrastructure - Airport infrastructure needs to be upgraded to handle the increase in air passengers, and aircraft need to be periodically maintained.
• Complex regulatory framework - The regulatory framework involves multiple agencies, which can lead to unclear policies and delays in obtaining permits.
• High fuel costs - Fuel costs are high due to high taxes on Air Turbine Fuel (ATF), and operating larger aircraft on long-haul routes is expensive.
• High training costs - Training costs are high, and training facilities are outdated, which can lead to a skills mismatch.
• Financial stress - It would have meant a drop in income by almost 50% for a young pilot who has invested over a crore of rupees to obtain his licence to fly.

What should be done?

• Adopt ICOA standards - India should adopt the ICAO Standard, allows a member state to recognise another ICAO licence and issue an Indian licence on the basis of only an Air Law examination and a Class I medical.
• Experienced captains - There will be hundreds of qualified and experienced Indian captains working abroad who will return to India if the hurdles are demolished.
• Instructor as pilot - The DGCA, in collusion with airline management pilots, has a rule that makes it mandatory for an instructor or an examiner to be an active pilot.
• However, they will accept a retired pilot working in a training centre abroad to carry out the mandatory checks on Indian pilots.
• Retired pilots – They can be utilised for simulator training. Such a step will also release a large number of trained pilots for active flying.
• Reforms in all sectors- It is critical to understand that for passenger airlines to grow, there have to be reforms in all areas of aviation - air cargo, airports, aviation fuel taxes and Maintenance, Repair and Overhaul (MRO).
• Updated laws- India’s Aircraft Act, 1934 and Aircraft Rules, 1937 need to be updated to keep pace with modern technology in aerospace, increasing costs to the industry and ultimately affecting passenger growth.
• Overhaul DGCA - India’s statutory regulatory authority, the Directorate General of Civil Aviation (DGCA), needs to be modernized, well-staffed, motivated and incentivized.

Quick facts

References

1. The Hindu-Indian aviation, a case of air safety at a discount
2. IBEF- The rise of Indian aviation market