World

PM Modi Discusses Revamping Loss-Making Indian Aviation Sector to Enhance Efficiency

New Delhi (Sputnik): India is going through a difficult phase, as the country has already spent more than two months in lockdown, which has now been extended from 4 May to 17 May. This has taken a toll on multiple areas of the economy, with the aviation sector being one of the worst hit.
Sputnik

Indian Prime Minister Narendra Modi on Friday held a meeting to discuss and review strategies that will increase the efficiency of the country’s civil aviation sector.

It was decided to effectively use Indian airspace to reduce the flying time to benefit the public as well as save costs for airlines in close co-operation with the Department of Military Affairs.

With an eye on generating more revenues, the Aviation Ministry has ordered an expedition of the process to hand over of six more airports on a public-private partnership (PPP) basis, commencing the tender process within three months.

A detailed review of the Directorate General of Civil Aviation (DGCA) was also carried to bring in transparency within the office and reduce the processing time to obtain permission and licenses.

The Indian aviation sector has been experiencing a crippling financial crisis, especially during the lockdown period, which now stands extended until 17 May. All national and international airlines remain temporarily suspended. This poses a daunting challenge for the government to pull them back to financial stability once the lockdown is lifted.

The Centre for Asia Pacific Aviation (CAPA), a top consulting firm, has estimated a loss of $3-3.6-billion for the Indian aviation sector between April and June this year. Against this backdrop, an appeal has been made by airlines to the federal government asking for monetary support for payments of salaries and other operational costs.

Discuss