'The BJP's numbers in this government are almost the same as those enjoyed by the Congress under P V Narasimha Rao when the reform process was kicked off in 1991.' 'As before, the only constraints on the prime minister's actions are internal, not external.' 'They come from his own assessment of the political consequences of any action,' points out Mihir S Sharma.
An exclusive excerpt from The Tatas: How A Family Built A Business And A Nation.
In India, the aviation industry contributes five per cent of gross domestic product, around Rs 291 crore (Rs 2.91 billion) in tax contributions, provides four million jobs and another seven million jobs through tourism and related activities.
At present, the booming airline industry is facing a shortage of approximately 1,000 qualified pilots, Union Civil Aviation Minister Praful Patel told Rajya Sabha in a written reply on Tuesday. Patel said the government has taken various steps, including increasing the retirement age of pilots to 65 years and setting up of a training institute in Maharashtra, to reduce the demand-supply gap.
'Earlier, when they were selling tickets at Rs 1,000, a family of five could travel by flight.' 'When it comes to realistic pricing and the price becomes Rs 5,000, a family of five will have shell out Rs 25,000.' 'How many will be able to afford that?' 'You will see people switching back to train travel which is more realistic.'
Hundreds of pilots are staring at a long wait to get the job of their dreams after completing the course, the cost of which runs to Rs 1 crore.
Air India and Tata Advanced Systems Ltd (TASL), a player in aerospace and defence solutions, on Monday signed a memorandum of understanding (MoU) with the Karnataka government for an investment of ~2,300 crore in the state's aerospace and defence sector. The strategic move is expected to enhance Karnataka's aerospace ecosystem and help create over 1,600 direct and 25,000 indirect jobs in the state.
'I think some of us, like Mukesh Ambani, myself and those of us who head industrial units, ought to really focus on what we can really do to make the world a safer place, maybe 50 or 100 years from now.' 'For instance, how can we deal with climate change and global warming, right now?' 'The effects of it may not be felt now; in fact, we may pay a price for it today, but it will help the generations to follow.'
The four-day event, which will conclude on March 11, saw many foreign aircraft companies display their flying machines. Rediff.com's Venkata Sathish gives a preview.
Air fares in India were about 300 per cent higher than those in China and some other countries because of high tax rates, Jet Airways chief Naresh Goyal said on Monday, asserting that the aviation industry could not grow with such taxation.
The minister said as the aviation industry has been growing at 18 per cent CAGR, the country needs up to 3,000 aircraft in 10 years.
In a bid to support revival of sectors hit most by the Covid-19 pandemic, Reserve Bank of India on Friday decided to open a separate liquidity window of Rs 15,000 crore for certain contact-intensive sectors like hotels and restaurants, tourism and aviation ancillary services.
The Indian aviation industry, which accounts for 2 per cent of the global aviation industry, suffered losses of Rs 10,000 crore (Rs 100 billion) in 2008-09. The industry is, however, now looking up, feels SpiceJet chief executive officer Sanjay Agarwal.
The 'Maharishi Valmiki International Airport, Ayodhyadham' has become the 68th civil airport terminal in the country to come under the umbrella of the specialised aviation security group of the central force.
Banks are reluctant about disbursing loans for aviation studies on fears that a slowdown will hamper the job prospects in the aviation sector. The move, say analysts, may affect the fortunes of aviation training institutes.
A proposal to permit foreign airlines to pick up stake in domestic carriers is among the several measures being considered by the government to help the Indian aviation industry overcome the financial crunch.
The government has imposed a service tax of 10.3 per cent on the gross value of tickets of all classes on the domestic flights and economy class on international routes.
Ratan Tata on Friday welcomed the government accepting Tata Sons' bid of Rs 18,000 crore for the takeover of Air India, saying the airline provides a very strong market opportunity to the group even through it will take considerable effort to rebuild the debt-laden carrier. "Welcome Back, Air India," he said. "The Tata Group winning the bid for Air India is great news," he said in a statement.
The home ministry has given security clearance to Air India CEO-designate Campbell Wilson, paving the way for him to take charge of the airline, according to a senior official. The appointment of Wilson as the chief executive officer and managing director of Air India was announced by Tata Sons on May 12. Tata Sons took over the loss-making carrier on January 27.
In a written reply to Rajya Sabha, Civil Aviation Minister Praful Patel has said that the country may need about 5,000 pilots in the next five years. The sector has started relying on expat pilots, whose current strength stands at 944. The civil aviation industry in the country is facing a shortage of type rated pilots. Patel said to bridge the gap between demand and domestic supply of pilots, govt has decided to establish a flying training institute at Gondia, Maharashtra.
In India, domestic airlines have not secured any relief from the government and are reporting 50-55 per cent loads as domestic air travel resumed on May 25 after two-month suspension.
Due to the group's presence across multiple businesses, it is in a unique position in the aviation industry to bring the best of talents.
Noting that Indian civil aviation sector is experiencing high levels of growth, Civil Aviation Minister Praful Patel has said the industry must tackle the shortcomings of inadequate infrastructure and shortage of skilled manpower to sustain growth.
For the first time, the country's largest airline IndiGo will soon lease up to four wide-body Boeing 777 planes to cover the shortfall in its international operations, according to officials. The airline said the wet-leasing of "certain aircraft" will be done as an interim measure. IndiGo, which has so far only been operating narrow-body Airbus planes, ATRs and freighters, will now be having wide-body aircraft in its fleet.
Govt may grant infrastructure status to the aviation industry to enable it to access finances at cheaper rates
Airlines sought a limited period concession of the standing rule of slot allocation, which mandates that firms must operate at least 80 per cent of their allocated slots.
Bharatiya Janata Party's National Democratic Alliance partners have got five cabinet ministerial berths in the third term of Prime Minister Narendra Modi, as against none in the outgoing government, given the party's dependence on allies for a majority in the Lok Sabha.
'He was a practical person who ensured that he thought about the common man, animals, the fact that they have a life and they have to be respected.'
Facing headwinds due to pilot exits, Akasa Air on Friday said it had approached the Delhi high court seeking interpretation and clarification with respect to mandatory notice period requirements for pilots and that the move was not against the DGCA or the civil aviation ministry. Akasa Air, which started flying in August last year, has initiated legal action against a "small set of pilots" who left the carrier without serving their notice periods that led to cancellation of many flights. In a statement, the airline said it sought relief from the Delhi high court to stop the unethical and illegal practice by this set of pilots.
Empty middle seat, no duty-free shopping to be new normal till WHO all-clear.
No major relief for airlines from the Budget.
Observing that the Indian aviation industry was passing through a 'fragile and delicate moment', he said some airlines could go bust in the coming few months if 'structural changes are not carried out expeditiously'. As many as 25 carriers worldwide have folded up operations in the past several months due to huge losses, the latest being Italian national carrier Alitalia, leading to over 100,000 jobs in the aviation sector being lost.
Corporate margins and profits in India remain vulnerable to changes in crude oil prices in the international market. Historical quarterly data from listed companies (excluding banks, finance and insurance, oil and gas, and power sectors) indicate an adverse correlation between corporate margins and crude oil prices.
Jalan-Kalrock Consortium, the winning bidder for bankrupt Jet Airways, on Monday said aviation regulator DGCA has renewed the airline's air operator certificate. Cash-strapped Jet Airways stopped flying from April 17, 2019. The Air Operator Certificate (AOC) was re-issued on May 20, 2022. However, since the airline did not start operations, AOC expired on May 19, 2023.
The CISF, tasked with providing security at airports, has also ordered a court of inquiry into the incident.
It is possible to be blind to this and pretend to carry on as if nothing has happened but that will not change the reality, asserts Aakar Patel.
The airline industry remained largely undecided on the exact quantum of increase in fares following the hike in ATF prices. Industry sources, however, said the prices might increase by Rs 150 for short haul routes and Rs 300 for long haul routes.
Boeing India president says with the rising prices of aviation fuel, the airlines do not have any option but to increase the fares.
