With technical revolution the Indian aerospace and aviation industry is entering a new era to harness the full potential of the advancements and make the country self-supporting in terms of defense production. Zooming into a bigger picture, the manufacturing sector of this niche is proving greater competition with the international market. In fact, the country is providing equal quality standards and efficiency with the available manufacturing facilities.
Undoubtedly, the Indian Aerospace Industry is witnessing unprecedented growth. HAL (Hindustan Aeronautics Limited) which is fully governed by India government is recognized as premier aerospace company in the country and it is no lesser than any other international companies. The Amazing deeds of our own ISRO (Indian Space Research Organization) are overwhelming! While playing major role in the defense aviation through design, manufacture and maintenance India is swiftly expanding its global presence as an aviation and defense engineering hub.
The country is now considered as one of the largest domestic civil aviation market in the world. It is expected that by the year 2024, India will overtake the UK to become the third-largest market. But there are many factors which are proving to be major hurdles in this regard. The excessive costs and low returns, recurring technical snags have placed the Indian Aviation Industry in an uncertain position at times. The most notable sign of it is the fall of business by Jet Airways, once India’s biggest airline by passengers and second-largest for several years. Jet Airways, which closed its operations, has INR 15,000cr outstanding dues. Another parallel example would be Air India which has debt repayment worth INR 9000 cr. Go Air has landed
at least 10 to 48 planes due to lack of network to fly them. Also, Spice Jet and IndiGo aircraft have addressed issues in various terms such as maintenance and others.
It is predicted that due to new orders for planes, there will be shortfall in commander pilots, a part of which will be filled by more expensive non-native pilots this would lead to a rise in the wage bill. Indigo in February announced to cut 30 daily flights from its schedule due to shortage of crew. Because of this Indigo is hiring 100 non-native commanders. The foreboding for the future is that losses will continue to grow while debts will keep on piling up. India’s carriers, afflicted with long-standing issues and persistent problems is staring at a grim future unless the government addresses these issues plaguing the airline industry.
The country’s enormous resource for manufacturing like data point for analysis, technical supports and skilled manpower is fostering a brighter days for the sector
The major factors hindering the Indian aviation industry is the high jet fuel prices. Jet fuel prices constitute about 40% of costs for an Indian carrier and are taxed higher than anywhere else in the world. Aviation turbine fuel has increased by 9% between January and March-end. On top of this low-ticket pricing combined In India’s price-sensitive market had led airlines into deep losses and will continue to hamper the growth of the airline industry.
The jet fuel is 35-40% more expensive in India than in the rest of the world. Reduction in the costs would pave ways for airlines to make enormous profits even with the current revenue levels. Amongst the economic crisis just like any other sector the airlines in India are also making futile appeals to the government for a reduction in taxes on fuel. The government should make an effort to acknowledge the concerns of the industry to bring them out of this difficult situation by relaxing the complicated regulations like RDG.
Though the sector is grappling among multiple issues, several researches and estimates have predicted an exciting future for the industry. In the next decade approximately USD 100 billion will be invested on acquisition in the Indian aerospace and defense sector. The country’s enormous resource for manufacturing like data point for analysis, technical supports and skilled man-power is fostering a brighter days for the sector which in turn would thrive the country’s economy on the whole. Considering the potent of this domain the government is coming up with favorable policies to enhance the present condition. The ‘Make in India’ initiative is shoving the India manufacturers to act as the suppliers to the world.