2012 THE BEST AND THE WORST
REGIONAL AVIATION: CONNECTIVITY ENHANCED TRAINING: ROUTE TO THE COCKPIT HELICOPTER EMERGENCY MEDICAL SERVICES
THE YEAR 2012 IS coming to an end but not on a happy note as far as the civil aviation industry in India goes. The impressive performance of the airline industry in 2011 with growth rate in passenger traffic touching 20 per cent was a reflection of the fact that the industry was on the right track. It had also raised hopes of India actually moving from being the ninth largest aviation market in the world today to the fourth slot by the end of the next decade. But within a year or so, the industry appears to have been hit by a crisis. Passenger traffic has been declining and all carriers are posting losses. Even IndiGo, that had been reporting profits consistently for the last three years, appears to be doddering financially. Kingfisher Airlines for all practical purposes is already out of business and despite some feeble attempts at revival; restoration to its once glorious status appears to be outside the realm of possibility. The heavily indebted national carrier Air India continues to survive with periodic infusion of funds from the government and is believed to be losing over ` 400 crore per month.
In the cover story in this issue, Amber Dubey, Partner and Head-Aviation, KPMG India, says that for the airline industry it is “the worst of times” because the sector is reeling in the face of challenges. Bleeding airlines, falling passenger and cargo traffic, rising fares, high airport charges, frequent strikes and worried financiers have grabbed the headlines in the recent past. As per the author, there still is hope for the industry as the government is seized of the problem and fundamental policy changes are indeed under way. Shriniwas Mishra, an aviation analyst based in Mumbai, is of the view that the underlying factors that plague the industry most are lack of strategic planning, flawed policy formulation and failure of the government to effectively address the critical issues.
A.K. Sachdev observes that despite the several impediments to growth and lack of support by the government, business aviation is likely to do well as its contribution to the well-being of the corporate sector is well understood in the business world. He also evaluates the low-cost model vis-à-vis legacy carriers and concludes that the former appears to be sturdily ensconced in the Indian civil aviation industry. Joseph Noronha analyses the reasons as to why regional aviation in India is not growing at the rate it should in a country like India. It is evident that for regional aviation to carve a niche in the airline industry, India needs at least 200 additional airports connecting the large number of smaller cities to metros. Captain S.R. Swarup highlights the qualitative difference in attitude and response of air traffic control in the West as compared with that in India, especially towards business aviation traffic. B.S. Pawar examines the global market for helicopters and R. Chandrakanth looks at the development of regional airports by the private sector.
For SP’s AirBuz, this month is special as it completes five years since launch in 2008. For us, the study of the civil aviation industry in India and abroad has been a rich and rewarding experience. We are grateful to our contributors, readers and well-wishers for their support to our endeavours. We continue to look forward to your patronage.
We at SP Guide Publications wish you a very happy and prosperous year ahead!