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Aviation: challenges

india Updated: Mar 30, 2008 19:51 IST
Lalatendu Mishra


To push through the reform process (privatisation of airports, merchant airports, sea ports, foreign direct investment in cargo and general aviation) initiated by Praful Patel despite resistance from Left parties and workers' unions.

* Airlines to keep the costs low so as to provide airfare at competitive (cheap) rates to fill seats and make some money. Employee costs, jet fuel prices are going up but airfares not rising to recover these expenses.

* To maintain the current rate of growth, as a section of passengers are moving back to railways and buses because of increase in airfares. Also, keeping up the employment momentum.

* A terrorist strike like 9/11 can make the airline industry bankrupt.

* Recession in the US economy, the biggest aviation market, can have adverse impact on India's aviation sector.

* A reversal of liberalisation by the government may spell doom.

* Intense competition from cash-rich and big global airlines such as Singapore Airlines, Cathay Pacific, Emirates Airlines and Gulf airlines.

* Low-cost airlines from southeast Asia and the Gulf could eat into business.