Aviation sector revives, but consumers need priority

The jumbo aircraft deal by Air India made waves as it was the largest-ever purchase in global aviation history. The size of the order prompted much speculation on the fortunes of the newly-privatised airline as well as the growth prospects in Indian skies. That the potential is enormous can be gauged from the fact that Indigo Airlines is also reported to be planning to buy several hundred aircraft to support its future domestic and international plans.

The main reason that airlines in India are betting big on the growth of both domestic and international passenger traffic is that the market for air travel remains largely untapped. It must be conceded that the government recognised air traffic was lagging far behind road and rail, prompting it to start a scheme — Udey Desh ka Aam Naagarik (Udaan) — to bring tier two and tier three cities on the aviation map.

The plan, launched six years ago, envisaged the availability of cheaper flights from smaller metros along with the revival of old airstrips to enable landings at remote destinations. Unfortunately, it failed to achieve many of its goals, and is now a pared-down version of the original idea. Nevertheless, it put the spotlight on the huge middle-class constituency in smaller towns, just raring to get the benefits of quick travel by air.

It also opened many destinations earlier linked only by road and rail to the pleasures of air travel. These include Bareilly in Uttar Pradesh and Itanagar in Arunachal Pradesh, which now have functional airports and direct flights to many parts of the country.

The fact is that India is considered the fastest-growing aviation industry in the world. Currently, passenger traffic is of the order of 123 million passengers in 2022, nearly reaching pre-pandemic levels. Forecasts are being made that traffic will touch 480 million by 2036, crossing the combined numbers of Japan and Germany. The International Air Transport Association (IATA) expects the Indian market to grow by a compound annual growth rate (CAGR) of 6 per cent over the next 20 years.

The biggest plus point of a fast-growing aviation industry is going to be the spurt in jobs. The rush to snap up skilled pilots, engineers, and cabin crew has already begun with Air India, Indigo, and the new entrant Akasa Air, reported to be making plans to hire 1,500 pilots this year. Market leader Indigo plans to raise its total strength by 6,000 in the current fiscal. This makes eminent sense as experienced personnel will be needed to take charge of the enormous numbers of new aircraft that are on order just now.

For aviation employees, this is a turnaround from the pandemic crisis that brought the industry to a halt and led to downsizing by many airlines. This had come on the heels of the sudden closure of Jet Airways in 2019 that had left 16,000 employees in the lurch. The resurgence of the aviation industry will bring a sense of relief to those who have gone through tough times in the past three years.

Despite this encouraging scenario, the key question remains of whether this will benefit the consumer. In recent times, air travellers have been subject to dizzying changes in air fares that skyrocket in times of peak demand. In addition, the so-called budget airlines have cut down on the free baggage allowance, and laid on a host of add-on charges, even for seat selection. These extras include exorbitant prices for food and converting budget flights to nearly the same as full-service operations.

The sharp rise in fares in December had led to travellers opting for nearby destinations with road or rail connectivity. It has slowed a return to pre-pandemic recovery for air traffic as compared to other modes of transport.

With soaring jet fuel prices, higher airfares probably cannot be avoided if airlines are to remain in the black. At the same time, the move to develop a revenue stream by charging extra for minor services smacks of exploitation. The Directorate General of Civil Aviation (DGCA) may hesitate to intervene but surely it can lay down guidelines for ethical practices. Similarly, consumer associations need to become proactive to ensure that air travellers are not going to be taken for a ride every time they go up in the skies. Such measures are essential as in the long run, these will determine whether air travel can lure traffic away from road and rail, enabling airlines to expand and improve profitability.

(Sushma Ramachandran is a senior journalist.)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.