The Indian aviation industry is staring at a huge market of 5.5 crore passengers which needs wings, figuratively, Air India Chairman Ashwani Lohani said on Thursday. The aviation industry has a massive growth potential if only adequate infrastructure in terms of airports etc is provided.
The states should subsidise travelling and eliminate VAT as it will act as a catalyst, Lohani said at an event. “Tourism is on an upswing. Currently, just at the fringes, there is a long way to go for the industry,” he said.
So what exactly is the obstacle in reaching the goals of UDAN?
In two months, UDAN will complete two years of its inception but not much has changed in the challenges it used to face earlier. Regional connectivity, lack of infrastructure, ATF prices and GST inclusivity, high VAT and a dearth of manpower, continue to hamper the success of the scheme.
UDAN was touted to be a game changer but the financial stress which the airlines are facing cannot be underplayed, as brought to notice by Pradeep Singh Kharola, Secretary of Ministry of Civil Aviation. Kharola said that the aviation industry will be the engine of economic growth.
The resistance on the part of states could be one reason. Speaking at the same event, Anand E Stanley, President & MD of Airbus India and Chairman, FICCI Civil Aviation Committee, suggested that the states should look at the airlines as customers and not suppliers. He also maintained that the pilot shortage and maintenance are the areas that need to be taken reins of.
While nudging the states to contribute and participate was the focus of the event, the states too seem to be willing to be involved. A representative from Nagaland, requesting anonymity, said that the state would like to indulge for progress and connectivity. However, since it didn’t get the opportunity to interact in the past, the condition remains at a dead end.
“We will propose one more airport in Nagaland which meets International standards. Nagaland hasa big tourism opportunity but the lack of connectivity is a major issue. Even the roads are not in good condition. Also, the state has only one functioning airport,” the representative said.
G K Chaukiyal, Executive Director, RCS-UDAN, said to Financial Express Online that the states are not reluctant and most of them have signed the MoUs (memorandums of understanding).
