Discuss the steps taken by the government to fix the issues faced by the civil aviation sector in India.

India has third largest domestic market in Civil Aviation in the world.

Significance:

  • Among the fastest growing sector.
  • Private players leading to cost effectiveness and large consumer base.
  • Key for passenger, freight transport such as Agri produce transport.

Constraints:

  • High cost of Aviation fuel – amounts to approximately 45% of total cost expenditure.
  • Poor safety mechanism and compliance – seen from various runway accidents.
  • Cut-throat competition leading to increasing losses for the players – most companies highly indebted.
  • Import dependence for key parts and repair works – high cost expenditure as well as delay.

Measures taken:

  • Regulatory reforms such as merger of different entities in Director General of Civil Aviation.
  • Government initiatives like UDAN – subsidised transport to undeserved networks.
  • Disinvestment where government resources stuck such as Air India.

Way forward:

  • Improve cost efficiencies such as better fuel prices.
  • Better safety compliance and regular audits – capacity building.
  • International collaboration to reduce import dependence.

Thrust on ‘Make in India’ and promoting technology transfer, coupled with unleashing domestic expertise is the key to healthy civil aviation sector.

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