On day two of the CAPA India Aviation Summit that took place in Mumbai recently, Anil Srivastava, Join Secretary, Ministry of Civil Aviation, addressed the attendees to throw some light on the issues and concerns being addressed in the Civil Aviation Policy proposal due to be submitted. Lauding the topics of the discussions and keynote address of the Summit, Srivastava stated that the issues of how the aviation industry can become more profitable, viable and go beyond capacity provision are indeed subjects that need to be discussed in all seriousness.
“We understand the need to have a more viable framework and environment to make airline and airport operations more profitable. Strategies of how to add resources and infrastructure for connectivity have to be mooted. We need a vibrant eco-system for sustainable connectivity,” he said, listing these points as the thought processes behind the drafting of the Civil Aviation Policy.
He opined that the route dispersal guidelines in use since 1994 have reached their full potential, and now need to be replaced in order to put a regional connectivity policy on the domain. According to him, the Ministry wants to simplify the classification of airlines to streamline the taxation issues plaguing the industry and promote connectivity.
Addressing the burning issue of the 5/20 rule, which dictates that an airline should have been operational for five years and have a minimum fleet of 20 aircraft to gain bilateral rights to fly international, Srivastava said that the decision is in the final stages. The Ministry has collected the figures and taken into consideration the large gap in connectivity, and is mooting the decision accordingly. “We understand that international carriers currently carry more Indian passengers than Indian carriers do, and we are considering all these points while making our proposal,” he said.
He further listed MRO as a challenge in India, revealing that the issue has been taken up strongly with the State Governments and Ministry of Finance, and the departments are confident of resolving the issue.
“A meeting also took place between the DGCA and AAI to regulate the take off schedules which are a growing concern. We recently had two airlines take off from a single airport at the same time, down to the same second. Such an incident is a concern and regulatory measures need to be taken to ensure this is streamlined,” he said.
Answering a question on the advantages of the integration of the skies in the South of India, Srivastava agreed that it has been a successful endeavour, and there are plans to emulate the move across India.
Speaking on the lingering concern on taxations, Srivastava opined that there is a need for the Ministry of Finance and Ministry of Civil Aviation to move hand in hand to address this issue. Answering a question on extending bilateral rights to increase capacity, he stated that there is a need to maintain a balance in the industry. However, the Ministry is mooting the extension of bilaterals for some of the international airlines. “We are aware of capacity issues with the number of airline seats not matching the tourism expectation, and we will take decisions in tune with the industry’s requirements,” he assured.
He added that the aircraft population is expected to touch 1,100 over the next few years and there are efforts and initiatives taking shape to aid the industry, as losses being faced by the airlines is a cause of concern to the Ministry as well.
A hot topic during the CAPA Summit was the reluctance of banks to give the aviation sector loans, and Srivastava opined that this mindset is gradually changing. “When we were aiding Spicejet through the rough patch we noticed higher optimism among the banks towards the sector than we saw when they were approached during the Kingfisher Airlines crisis,” he said.
The Civil Aviation Policy proposal is due for submission in mid-February, and is expected to be released in three-four months.
