With Vijay Mallya’s Kingfisher Airlines having shut shop, check out what aviation honchos think of Budget proposals

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Vijay Mallya has racked up as much as Rs 9,000 cr in loans and now the 'King of Good Times' has scooted off to the UK as Indian authorities look to recover the amount from him and his defunct Kingfisher Airlines. This airline has suffered the worst fate, but just a few months ago most Indian Airlines were in trouble as the costs of flying kept skyrocketing. They were all clamouring for intervention by the govt to stay afloat. Keeping this in mind, we check what Arun Jaitley has proposed in Budget 2016 for the aviation sector and what the industry's reactions are: (Image Source: Reuters)

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The Union Budget, presented by Finance Minister Arun Jaitley in Parliament, drew mixed reactions over the 'minimal focus on aviation' even though the the plan to revive 160 underserved airports was welcomed as a major boost for regional connectivity. However, M Bhupesh Joshi, Director and CEO, Club One Air said, “This Union Budget looks like a formative one which will push in reforms from the top and the benefits will trickle down to the common man in the long term.” (Image Source: Website)

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"It was hoped that the draft aviation policy released way back in October 2015 will be finalised by December 2015, well in time for the tax benefits to be captured in the budget. Delay in finalising the same has hurt the aviation sector. Aviation sector continues to suffer from an 'elitism' tag and struggles for attention and a sense of urgency from policy makers. Far reaching reforms proposed for regional connectivity, MRO, 'infrastructure' status for aviation sub-sectors, etc find zero or passing mention," Amber Dubey, partner and head, aerospace and defence at global consultancy KPMG, said. "Reforms in MRO procedures, duty-free period and free stay period are welcome but the bigger relief in terms of zero-rating of service tax and 'infrastructure' status for MRO have been left out," he added. (Image Source: Reuters)

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Ankur Bhatia, Executive Director, Bird Group and Member, CII National Committee on Civil Aviation, said the proposal of reviving underserved airports by allocating a budget of Rs 50-100 crore each, developing 10 out of 25 non-functional airstrips in partnerships with state governments will definitely accelerate development of regional aviation sector and also boost the aviation sector. (Image Source: Reuters)

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Conrad Clifford, Regional, Vice President for Asia Pacific region, International Air Transport Association (IATA), said the budget had "minimal" focus on aviation. "We hope the government will do a better job with the National Civil Aviation Policy (NCAP). While NCAP is a step in the right direction, there are areas of concern, especially where it adds costs to the industry or where it deviates from well-established global standards," he said. (Image Source: Reuters)

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IATA hopes the government will address three priority areas – retract the 2 per cent Regional Connectivity Fund levy, abandon the plan to auction traffic rights, and allow AERA to perform its functions independently by not enshrining any 'Till' for airport charges in the policy document, Clifford added. (Image Source: Reuters)

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According to Peeyush Naidu, partner, Deloitte Touche Tohmatsu India LLP, the Finance Minister has focused on development of 160 non-functional airports at a cost of Rs 50-100 crore each along with 10 of 25 defunct airstrips in partnership with state governments. "This move will facilitate creation of necessary infrastructure for enhancing regional air connectivity and providing access by air to more parts of the country," Naidu said. (Image Source: Reuters)

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Developing new airports is always good but the country already has many airports without much connectivity, Jayant Nadkarni, President, Business Aircraft Operators Association, said. "For operations to commence, we need clarity on funding, taxation, duties, and incentives. These are yet to come together for the small aircraft sector in business aviation and in scheduled commuter flights to remote areas. The potential for growth clearly exists," he said. (Image Source: Reuters)

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Kabir Bogra, Partner, Khaitan and Co, said if effectively managed, the proposed investments in airstrips would provide a huge impetus to regional airlines and help in unlocking a significant potential in civil aviation in India. (Image Source: Reuters)

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Bharat Anand, Partner, Khaitan and Co, said the withdrawal of customs duty exemption on defence imports by public sector undertakings is a significant move and continues the government's efforts to encourage the private sector and exhibit its commitment to 'Make In India' programme. (Image Source: Reuters)