Financial viability of airlines needs to be addressed urgently as it is proving to be a big challenge for the aviation sector in the country, Civil Aviation secretary Pradeep Singh Kharola said in Bengaluru on Saturday. He also urged all state governments to bring down tax on ATF (Aviation Turbine Fuel) to improve the financials of these airlines. Currently, the Central government charges an excise duty of 11 per cent, while the state-level taxes can go as high as 30 per cent.
Fuel expense, of which a big chunk includes state tax, is a major cost factor for airlines. Kharola also briefed upon various factors to help improve the sector faced with multiple challenges. “To cater to the growth in air traffic, we need to improve the airport infrastructure further. At the same time, we need to have more skilled manpower. There is a requirement of around 700-800 pilots in India in a year, but India produces only around 350 pilots a year. This needs to be addressed and steps should be taken to fill the gaps. Though we have also expanded big on the domestic front, we need to do well in long and mid-haul flights; otherwise, foreign airlines will take away the market,” said Kharola.
He also said the civil aviation ministry was trying to define a drone policy as it was an emerging technology area that was growing rapidly. “We have observed a large number of activities around drones as they can be used for multiple purposes. We have asked the users for the details of the drones available with them. We are aiming to grant licenses to them to operate those drones. A lot of start-ups, especially in Bengaluru, are working towards developing this drone ecosystem. We are looking at a regulatory framework towards drones soon. We expect good response from the start ups towards this,” added Kharola.
The former Air India Ltd's chairman and managing director added that accessibility to airports have improved considerably in the last few years and the sector has become more affordable for people. This has led to more domestic flyers in India.
Kharola also observed that Bengaluru has emerged as the aviation capital of India because of its synergy between software, aerospace and ISRO (Indian Space Research Organisation), and was responsible for making major strides in the aviation sector in the country.
