Challenges faced by the aviation Industry in India

 

  • Shortage of trained employee
    • There is a shortage of trained and skilled manpower in the aviation sector because of which there is cut-throat competition for employees; thereby driving wages to unsustainable levels
  • Regional connectivity
    • Though there are a large number of airlines operating, still there is lack of regional connectivity
    • Providing regional connectivity is one of the greatest challenges for the Aviation sector in India. This is due to lack of airports and other associated infrastructure
  • Rising fuel prices
    • The jet fuel cost accounted for nearly 45% to 50% of the total costs in 2018; thereby presenting more operational challenges
  • Declining yields
    • Pricing and yield are the key elements for an airline to operate
    • Commercial liberalization has led to intense competition and reduction in real yields for Airline companies
  • Gaps in Infrastructure
    • Airport infrastructure and Air Traffic Control (ATC) foundation are insufficient to help development
    • While a beginning has been made to redesign the infrastructure, the outcomes will be visible after some years.
  • Technical Challenges
    • The maintenance, Repair, and Overhaul (MRO) industry is not well developed in India; to provide for cost-effective maintenance of Aircrafts
    • The lack of native Aircraft manufacturing base, results in more imports of Aircrafts, thereby making the operations more Capital Intensive