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• The Indian aviation industry is facing prominent challenges that hinder its projected growth. The rising operating cost has completely jeopardised the economies of some airlines today. This high operating cost combined with a highly competitive market condition has added to the continued strain and draining of the limited financial resources of airlines. It has been estimated that airlines in India are battling with a debt of more than $15 billion today, which is threatening their existence and sustainability today.

• We hope that the government will look at easing the inclusion of foreign direct investment  (FDI) in the aviation sector, as the current 49% and no investment in the Indian carriers has limited the resources and lead to an investment gap. Therefore, the government needs to allow international airlines to participate in the FDI. We also hope that the recent decision to allow airlines to directly import aviation turbine fuel (ATF) will be approved for implementation by the cabinet. This will further help in reduction of sales tax, which is required to be paid by the airlines. Finally, the Indian airspace infrastructure is already constrained at India's current levels of traffic. With the passenger traffic estimated to grow at the rate of 8 - 10% for the next decade, managing the same will require rapid upgradation of airport infrastructure. Regional connectivity needs to be aggressively promoted as there is a considerable opportunity existing in connecting tier-II and tier-III cities with smaller aircraft. 

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