08 Jul 2019
India Aviation Industry Newsletter 8 July
Aviation sector to get major boost as govt eyes maintenance hub status
The aviation sector is set to get a major boost with the government proposing to make India a hub of maintenance repair and overhaul (MRO) activities and aircraft financing, besides relaxing foreign direct investment rules for overseas carriers. Policies would be changed to foster growth in MRO services, a long-standing demand of the industry. Further, aircraft leasing businesses, including leveraging opportunities at the financial special economic zone—International Financial Services Centre (IFSC)—will also be on the agenda. The Budget has also increased allocation to the regional connectivity scheme (UDAN) by around 10% to `480 crore in FY20. India boasts of the third-largest domestic market in the world behind USA and China. It carried 139 million passengers in 2018, up 18.6 % year-on-year.
Delhi airport to soon be free of disposable plastic
In the next five months, Indira Gandhi International (IGI) Airport will become the first in the country to be entirely free of single-use (disposable) plastic. The project covers all three terminals and the airside portion of the airport. The initiative, in line with India's pledge to eliminate all single-use plastic by 2022, will be replicated in other airports as well.
Develop domestic capabilities to boost aviation announced in budget
In her two hours and nine minutes long maiden speech as the country's first full-time woman finance minister, Nirmala Sitharaman, a Rajya Sabha member from Karnataka, has made some ambitious announcements for the aviation sector. The minister said that "as the world's third largest domestic aviation market, the time is ripe for India to enter into aircraft financing and leasing activities from Indian shores." "This is critical to the development of a self-reliant aviation industry, creating aspirational jobs in aviation finance, besides leveraging business opportunities available in India's financial special economic zones (SEZs), namely, International Financial Services Centre (IFSC)," the minister said. India is one of the fastest-growing aviation markets. At present, there are about 600 commercial aircraft in operation, and this number is expected to reach 1100 aircraft by 2027.
Number of pilots with commercial licenses increased over 5 years
The number of pilots with commercial pilot licenses has increased in India over the last five years even as airlines have hired more number of foreign pilots during the same period, Civil Aviation Minister Hardeep Singh Puri told Rajya Sabha announced. In the year 2015, the number of Commercial Pilot License (CPL) issued was 394 and it rose to 659 in the year 2018. For the year 2016 and 2017, the number of CPLs issued were 458 and 593 respectively. In 2019 a total of 313 CPLs were issued till May 31.
Seven airports, 3 greenfields, 2 water aerodromes to set up in NE, says AAI official
The Airport Authority of India (AAI) is planning to develop seven more airports including three greenfield airports and two water aerodromes in the Northeast region, said AAI senior official. Currently 12 airports is operation in north-eastern states.
SriLankan Airlines to operate 4 additional weekly flights to Delhi
SriLankan Airlines is to operate 4 additional weekly flights connecting Delhi with Colombo with effect from 4th July taking the weekly flights between the two cities to 18 flights, Vipula Gunatilleka, Group, Chief Executive Officer announced. The launch of four more flights to Delhi will see the weekly flights operated by SriLankan Airlines to various cities in India go up to 221 flights a week. India is an important market for the airline and constitutes almost 24% of the total passengers travelling with SriLankan airlines on its international network.
Star Air Records the Best On-Time Performance (OTP) for a Startup Airline in the Indian Aviation Industry
Star Air having its base at Bengaluru has recorded the best OTP of 89% since its inception. It is the best achievement by a start-up airline in the Indian commercial aviation sector. Mr. Simran Singh Tiwana, CEO Star Air, said, "Our team is dedicated to provide the best-in-class service, and we strive for the On-Time Performance. I congratulate every member of Star Air family for this exceptional achievement and their commitment towards their duties and 'customer-first attitude'."
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