All about Indian Airline Industry

Indian civil aviation is the world’s ninth largest aviation market, on track to become the third largest by 2020 and the largest by 2030. In 2013, 163 million passengers travelled, up from 174.2 million in 2014. In 2015, India’s domestic passenger traffic grew by double digits, while foreign passenger traffic increased by more than 5%. It is set to be a reliable means of transport in India in the near future, however, the question remains about the development of air transportation in India

The recession of 2008 hit Indian airlines the hardest, and practically all of them went bankrupt. Jet Airways purchased Sahara Airways in 2006-2007, and practically all of the enterprises were profitable at the time. The most significant impact on airlines has been a change in regulation by the Directorate of Civil Aviation (DGCA) and a year-long ban on Airbus in India. All airlines in India suffer losses as a result of these decisions. During the same time period, Air India merged with Indian Airlines, resulting in a loss of INR 44,000 crore for Air India. Between 2011 and 2014, the Indian government aided Air India in recouping losses by providing a rescue package of more than 10,000 crores.

Kingfisher Airlines (India’s largest airline) filed for bankruptcy in 2012 after a long fight. For several months, the airline was unable to pay its taxes and debt. They have also failed to pay their employees’ salaries.

On the occasion of Diwali, that is on November 11, 2015, the Indian government announced that FDI norms will be relaxed and that the limit for 15 industries, including civil aviation, would be increased and contribute to air transport development in India. Greenfield airport projects, helicopter services, seaplanes, maintenance, and repair firms, flying training institutes, and technical training institutes all allow 100 percent FDI.