Aviation Management

Aviation Management in India gets the much-needed attention to rise high in 2022

Airport is taking off from airport after a successful aviation management operation Posted On
Posted By CCE UPES

Civil aviation management in India has emerged as one of the fastest-growing industries in the country during the last three years. Being the third-largest market for Aviation in the world, India is expected to overtake the UK to become the third-largest air passenger market by 2024.

Given the unutilized potential of this sector, air transport is expensive for the majority of the country’s population, comprising around 40% is the upwardly mobile middle class.

To cater to the rising demand, the Government of India has been working towards increasing the number of airports. As of 2020, India had 153 operational airports. India has foreseen increasing the number of operational airports to 190-200 by FY40 and the number of aeroplanes is expected to reach 1,100 planes by 2027.

According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in India’s air transport sector (including air freight) in the last 10 years reached US$ 3.06 billion between April 2000 and June 2021. The government has allowed 100% FDI under the automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airlines. However, FDI over 49% would require government approval. India’s aviation industry is expected to witness Rs. 35,000 crore (US$ 4.99 billion) investment in the next four years. The Indian Government is planning to invest US$ 1.83 billion in the development of airport infrastructure along with aviation navigation services by 2026.

Major initiatives undertaken by the Government are –

  1. The Ministry of Civil Aviation (MoCA) announced that airlines can operate domestic flights without any capacity restriction, effective from October 18, 2021.
  2. Ministry of Civil Aviation launched the Krishi UDAN 2.0 scheme in October 2021. The Krishi UDAN 2.0 will be implemented at 53 airports across the country, largely focusing on Northeast and tribal regions, and is expected to benefit farmers, freight forwarders and airlines.
  3. The Regional Connectivity Scheme or UDAN (‘Ude Desh ka Aam Nagrik’) is a vital component of NCAP 2016. The scheme plans to enhance connectivity to India’s unserved and under-served airports and envisages to make air travel affordable and widespread. Under the scheme, airfare for a one‑hour journey of 500 km has been capped at INR 2,500, as an all‑inclusive charge.
  4. The National Civil Aviation Policy (NCAP) significantly covers the MRO industry and specifically focuses on easing the pain points that have traditionally impacted the Indian aviation sector.

The ‘place of supply for B2B MRO services was changed to the ‘location of recipient’, enabling Indian MRO facilities to claim zero-rating (i.e., export status) under GST laws on MRO services rendered to prime contractors/OEM located outside India. This has been an extremely crucial policy amendment as it will encourage global participation in the Indian aviation sector by allowing foreign MRO operators to subcontract MRO work to Indian entities without any extra tax liability.

Though the impact of the pandemic on the Aviation industry can’t be overstated, however, the above-mentioned steps by the government have given new hope to all the ambitious minds who plan to pursue an MBA in Aviation to elevate their career trajectory. Being one of the leading universities, UPES CCE offers the best mentorship and career support for young graduates and working professionals who seek a successful career transition in the Indian Aviation industry.

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