Aviation on Revival Course
As we know, during the initial period after March, 2019 when the first severe lock down was clamped worldwide, the most affected was the sectors of aviation, hospitality, hotels, tourism. As far as the airline sector is concerned, it saw all aircraft grounded in every nook and corner to the extent of 90%. The only flights then operated were with the governmental nods especially to evacuate their own countrymen stranded abroad. As the first wave waned, the flights took off only to be grounded again with the second wave sweeping the continents more severe than the first. The loss in aviation was estimated to be of the order of $190 billion.
Third wave was a milder one aviation and other economic activity opened up since October, 2022. Flights on domestic sector almost overtook pre covid levels as Minister of Civil Aviation, Jyotiraditya Scindia said in a statement. “Domestic air travel has surpassed pre covid levels” he said. He informed that domestic passenger count during April was 4.70 lakh surpassing pre-covid levels. While 105 million pax travelled in 2020-21 and 2.47 MMT of freight was moved by air.
Freight constituted 3.14 mmt during 2021-22 (1.96 mmt international; 1.18 domestic). With his pursuation 16 states have reduced VAT on ATF. This will enable the airlines tide over the operating costs and also result in lowering of the overall pricing of air tickets to flyers.
International sector is still slow as North Korea, Shanghai and other countries keep reporting increased covid cases. But, the Indian economy is there to leap forward even as Russia-Ukraine conflict has become a non-est factor.
Current Global Commercial aircraft market is estimated at $ 191 bn. It is likely to rise to $ 225 bn by 2028 and $ 265 bn by 2030. This kind of numbers augur well for Indian Aviation that is once again growing faster in its delayed pursuit of becoming 3rd largest world aviation. Indian skies are expected to see 1500 aircraft in next 5 years from its current 710. Approx 120 aircraft are entering every year. Jet Airways, Akasa along with consolidation of multiple TATA airlines with prized privatised Air India, Indian aviation is in for excitement for flyers.