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Indian Aviation Sector | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

The civil aviation sector in India has experienced substantial growth over the past three years and encompasses various segments such as scheduled air transport services covering domestic and international airlines, non-scheduled air transport services including charter and air taxi operators, and air cargo services for transporting cargo and mail.

Challenges Affecting the Indian Aviation Industry

  • Financial Distress: Airlines are facing severe financial strain, nearing bankruptcy, resulting in potential job losses and salary reductions. Some carriers have enforced unpaid leaves for their employees.
  • High Aviation Turbine Fuel (ATF) Costs: ATF costs in India are exorbitantly high due to steep taxes and vulnerability to currency fluctuations, constituting around 40% of operating expenses for Indian carriers, compared to 20% for foreign airlines.
  • Competitive Pressure: The intense competition among domestic airlines coupled with the necessity to secure a portion of the expanding market and price sensitivity among passengers make it challenging for airlines to increase ticket prices.
  • Challenges of Regional Connectivity Scheme: The New Civil Aviation Policy (NCAP) 2016's regional connectivity scheme imposes ticket price caps, limited viability gap funding for three years, and operational issues like a lack of slots at major airports, creating hindrances.
  • Shift in Focus: Reduced passenger traffic might lead stakeholders to allocate more resources for developing drones and autonomous vehicles, especially in the cargo sector.

Challenges Faced by Indian Airports

  • Tabletop Airports: Airports built on plateaus or hilly terrains pose operational risks due to their topography. Airports like Lengpui, Shimla, Kullu, Pakyong, Mangaluru, Kozhikode, and Kannur are considered "tabletops," with incidents, such as the Mangaluru accident in 2010, highlighting these risks.
  • Infrastructure Issues in Tier-II and Tier-III Cities: Poor infrastructure, including inadequate road connectivity and transportation facilities, alongside difficult terrains, contributes to frequent flight cancellations and makes it challenging to sustain traffic on these routes.
  • Capacity Constraints: Major airports in metro cities have reached their capacity limits in terms of landing and parking slots, with limited augmentation due to the addition of UDAN routes. This has led to concerns about exceeding the structural capacity by early 2022, despite estimates suggesting a surge in passenger numbers by 2036.
  • Regulatory Challenges: The Airports Authority of India handles multiple responsibilities, including airport operations, construction, airspace management, regional connectivity, and cargo handling, leading to an overloaded regulatory system.

Measures Required

Structural Improvements:

  • Implement measures to prevent downward slopes in the overshoot areas, particularly on "tabletop" runways, ensuring safer landing conditions.
  • Install ground arresting systems for aircraft, similar to those maintained by the Indian Air Force, such as Engineered Materials Arrestor/Arresting Systems. These systems, located at runway ends, act as safety barriers and effectively halt aircraft overruns.
  • Establish a visual reference system to alert pilots during landings about the remaining distance to cover, enhancing safety protocols.

Optimize the positioning of Air Traffic Control (ATC) towers, approach and area radars, and prioritize roles like Rescue and Fire Fighting services, aerodrome risk assessment, and recommendations for the Directorate General of Civil Aviation (DGCA).

Non-Structural Interventions:

  • Leverage policy interventions like UDAN to revitalize regional air connectivity by reviving underutilized airports, ensuring broader accessibility.
  • Address the surge in India's aviation market by focusing on expanding airport infrastructure capacity to meet growing demands.
  • Maximize the potential of the Maintenance, Repair, and Overhaul (MRO) industry by proper regulation and skill development for servicing advanced aircraft.
  • Ensure a more transparent Aviation Turbine Fuel (ATF) regime by mandating oil marketing companies to disclose costs and pricing methods, enhancing fairness in the market.
  • Mitigate excessive concentration of power within the DGCA to foster healthy competition and ensure the economic sustainability of the sector.

Conclusion

  • India's aviation industry holds immense potential and substantial growth opportunities, akin to the telecom and financial services sectors after liberalization.
  • The industry's health and competitive spirit are crucial, given its potential as an economic force multiplier, creating substantial job opportunities and impacting the economy positively.
The document Indian Aviation Sector | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC is a part of the UPSC Course Current Affairs & Hindu Analysis: Daily, Weekly & Monthly.
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FAQs on Indian Aviation Sector - Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC

1. What are the challenges faced by the Indian aviation industry?
Ans. The challenges faced by the Indian aviation industry include high operating costs, intense competition, infrastructure constraints, regulatory hurdles, and a shortage of skilled manpower. These factors contribute to difficulties in achieving profitability and sustaining growth in the sector.
2. What are the challenges faced by Indian airports?
Ans. Indian airports face challenges such as congestion, limited capacity, outdated infrastructure, inadequate facilities for passengers and cargo, and security concerns. These challenges impact the efficiency and effectiveness of airport operations, leading to delays and inconvenience for travelers.
3. What measures are required to address the challenges in the Indian aviation industry?
Ans. To address the challenges in the Indian aviation industry, measures such as infrastructure development, modernization of airports, implementation of robust security measures, regulatory reforms, skill development programs, and promotion of investment in the sector are required. These measures can improve operational efficiency, enhance passenger experience, and attract more airlines and investors.
4. How can congestion and limited capacity at Indian airports be resolved?
Ans. Congestion and limited capacity at Indian airports can be resolved through the expansion and modernization of existing airports, construction of new airports in underserved regions, and implementation of advanced technologies for air traffic management. Additionally, the optimization of ground handling processes and the utilization of remote and virtual operations can help alleviate congestion and increase capacity.
5. What impact do high operating costs have on the Indian aviation industry?
Ans. High operating costs in the Indian aviation industry have a significant impact on the financial viability of airlines. These costs include fuel prices, airport charges, maintenance expenses, and taxes. When operating costs are high, airlines may struggle to offer competitive fares, maintain profitability, and invest in fleet expansion. This can lead to limited growth opportunities and may affect the overall development of the aviation sector in India.
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