EXPLAINED | Aviation Industry Flies Past Covid Turbulence, But Airlines Continue To Collapse

In 2018, India became the second largest market for the commercial aviation with 18.6 per cent surge in the number of passengers flown as compared to 2017, followed by China with 11.7 per cent.

(Representative Image/ AFP)

New Delhi: In the year 1911, French aviator Henri Peque flew a 15-minute exhibition flight that covered a distance of 6 miles, carrying 6,500 pieces of mail from Allahabad to Naini, marking it the beginning of the Indian Commercial Aviation industry. After two decades, Jehangir Ratanji Dadabhoy Tata (also known as JRD Tata) got the contract of airmail service and in 1932 he established the Tata Airlines, which is now the flag carrier of India- Air India. Today there are over 40 different airline carriers operating throughout the country with around 468 airports with availability of more than 690 commercial aircraft. In 2018, India became the second largest market for the commercial aviation with 18.6 per cent surge in the number of passengers flown as compared to 2017, followed by China with 11.7 per cent. The aviation sector saw a booming rise after 2014, when the BJP government came to power. As per the Directorate General of Civil Aviation, the industry saw a rise of 20.3 per cent from 2014-2015, 23.2 per cent from 2015-2016 and made a record when a total of 13.9 crore passengers flew in 2018. As the current government is encouraging the citizens for air travel, several schemes were also introduced to ease the deal. From the construction of airports to increase regional connectivity to subsidising the fare and fuel, the government is doing it all to boost the industry. Centre has even introduced the “UDAAN” scheme with an aim to increase regional connectivity. The scheme came with a slogan “Ude Desh Ka Aam Nagrik” ( The common man of the country should fly) in which the government subsidised around 1 crore seats, making air travel more affordable for the passengers. While the industry is witnessing the passenger surge, it also saw collapse of some big carriers in the past one decade. From scheduled to regional, around 7 airlines got defunct and several are on the verge of closure. The full-service carrier Jet Airways was shut down in 2019 after suffering major financial turbulence. With a fleet of as many as 124 aircraft, the airline was operational in 57 destinations across India and the world. It had an employee base of around 16,000. The full-service airline ran into losses after lowering the ticket prices in order to compete with the low-cost carriers like Indigo and SpiceJet. Another blow came to the industry when businessman and liquor baron (now absconding) Vijay Malaya-led Kingfisher Airlines ceased its operations in 2012 amid large financial losses. Kingfisher came into existence back in 2005 and did not see a penny of profit since inception. From serving domestic to international destinations, in 2007 the airline acquired Air Deccan, which made it even more hard to survive. Vijay Malaya is now a declared fugitive accused of non-payment of loans by the Indian Government. Just like these big carriers, even several small and regional carriers like Air Mantra, Air Pegasus, Air Carnival and Air Costa have also ceased their operations. Air Costa was the launch customer of Embraer new regional jets in Asia. While Air Carnival ceased its operations in just 10 months, Air Pegasus survived managed to survive for 15 months. Even the flag carrier Air India is somehow surviving with mounting debts of more than Rs. 60000 crores. While low cost carriers like SpiceJet, Indigo and GoAir are booming with profits, it can be assumed that the country demands for cheaper air-travel rather than going full-service. Currently the aviation industry faced a massive burnt of Coronavirus outbreak and the nationwide lockdown announced by the Centre to contain the spread of this deadly visur that has infected over 70 lakh people in the country. As during the lockdown, domestic travel was banned and after the restriction were lifted, passengers are still skeptical to travel freely.