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India’s Aviation woes : Are you listening Mr Ajit Singh?

, December 20, 2011, 0 Comments

Mumbai December 20, 2011 : On Sunday Rashtriya Lok Dal chief Ajit Singh (fondly known as Mr Inconsistent due to his tie-up with anything and everything who comes to power) sworn in as Civil Aviation Minister. He is becoming Aviation Minister at a time when Aviation Industry is bleeding very badly and it needs very serious work not merely last minute Pre-Poll adjustment as actually the case may be. Even Vyalvar Ravi was also being roped in just before congress was going to Kerala state election and he has not contributed anything  which can be written about and remembered off.

Wishlist from New Aviation Minister
It remains to be seen that how next six months panes out for aviation sector, we enlist some issues which needs to be tackled if one would really see aviation to be in good shape and do not become uncontrolled crisis.

  • Restructuring Air India
  • Unfolding logjam between Banks and Private carrier such as KFA
  • Permanent solution for Airport Development Fee (ADF)
  • High fuel cost of carriers and high taxes on jet fuel
  • FDI in Aviation

What Industry People has to offer
Recently Director General and CEO, IATA, Mr Tony Tyler told that India need good domestic air transport infrastructure to facilitate foreign investment. On high fuel cost he said ‘Globally, even in the bad days, fuel costs do not account for more than 30 per cent of the total costs of airlines (the world over) But in India, it is 45 per cent’.

He urged that the Indian government to set the aviation industry free (from policy interventions like checking airfares). Concentrate on building infrastructure and the air navigation system. There is a lot the Indian government can do. Aviation industry contributed five per cent of the GDP, around Rs 291 crore in tax revenue, provided four million jobs and another seven million jobs through tourism and related activities.

We hope New civil aviation minister is listing to what Mr. Tyler has to offer for Indian Aviation. True efficiency and determination of New Minister would be known only after UP election are over. Time only will tell that, Is he Mr. Right? or just another musical chair round has been played out.