What Will 2020 Bring For Indian Aviation?

While analysts see more financial pain, private carriers look to expand their fleet and services. Ashwini Phadnis reports

- Ashwini Phadnis

After an event-packed 2019, what happens in the Indian aviation sector in 2020 will largely depend on how the path-breaking developments over the last year pan out during the new year.

Among the big-ticket changes introduced in 2019 was the government laying down the roadmap for leasing of aircraft in India. If carried forward, this will mean that airlines in India will be able to control one major component of their costs: fluctuations in foreign exchange, which affect what Indian carriers have to pay for leasing their aircraft — as they will be able to lease their aircraft in INR.

The tragic crashing of two MAX aircraft led to the worldwide grounding of this variety of aircraft. There could be some action on this front, with manufacturer Boeing pushing for the early re-entry of the aircraft. However, the aviation industry remains divided on whether the plane should be certified and allowed to fly again or not. In India, SpiceJet and Jet Airways operated this variety of aircraft till it was grounded.

Another event that impacted Indian aviation was the discontinuation of Jet Airways’ operations after 25 years of successful functioning.

Though news of the airline finding a new buyer keeps trickling in, there is little to show that the airline will take to the skies again anytime soon.

According to Siddhanta Sharma, President & CEO, InterGlobe Air Transport, “Although the transitory vacuum created in the domestic capacity due to Jet stopping operations was filled in swiftly by the local airlines, the one created on the international side will be slow to fill and, to some extent, maybe rationalised at lower capacity levels.”