Indians need to think and dream big, and combine that with flawless and speedy execution

While many sectors have grown by leaps and bounds, a measly 3-4% of Indians travel by air. What ails the industry? Can we make every Indian fly at least once a year by the time we celebrate the 100th year of Independence?

We need to think and dream big. And dreams, to be realised, must be combined with flawless and speedy execution and accompanied by deep reforms.

Let us trace our own recent trajectory with particular focus on aviation. 

The reforms that opened up the aviation sector in 1991 by ending the Licence Raj and the monopoly of Indian Airlines and Air India changed the sector. Many private airlines were given licence to fly, but only two—Jet Airways and Sahara—survived, resulting in cartelisation. Again, when low-cost airlines took wings in 2003, they broke the cost and caste barrier to flying by penetrating deep into the hinterland. That resulted in an explosion of demand that enabled common people to fly. 

Sadly, while all sectors have grown by leaps and bounds over the years, aviation has become “the sick man of India”. Thanks to choking regulations, tough entry barriers for new entrants, high fuel prices abetted by sky-high taxes, inefficient public sector airports paving the way for monopoly of private airports, and the lack of a long-term strategic policy devoid of frequent knee-jerk changes, aviation’s growth has slumped again. 

Our bilaterals, and open sky policies must be rethought boldly and imaginatively so that the Delhi, Bombay, Bengaluru, Chennai and Kolkata airports can become mega transportation hubs like Dubai and Singapore. India is strategically located to link the West and Middle East to the Far East.

Besides, 140 million air tickets were bought in 2019. Five years hence, we are struggling to cross 200 million. To be sure, the 2019 figure does not imply 140 million individuals bought tickets. It comprises 35-40 million frequent flyers, who form the bulk of ticket buyers. That translates to less than 4% of the population who can afford air travel, placing India alongside some poorer African countries in terms of per capita consumption of air tickets.

Brazil had sales of 119 million tickets for a population 215 million; Malaysia saw 63 million ticket sales for a population 33 million; in Indonesia, it was 116 million tickets for a population of 280 million, and in China it was 660 million tickets for 1.3 billion people.

In 2002, I imagined a new vibrant India that had unleashed consumer aspirations in the wake of the reforms. On a Southwest Airlines flight in Phoenix, US, a heavily tattooed burly man in shorts sat next to me, and I learnt that he was a carpenter. That was my moment of epiphany. I decided India was ready and launched a low-cost airline on a wing and a prayer. It was a crazy idea, but the atmosphere was conducive.

Entrepreneurs break the status quo, smash cartels and create new markets. Naresh Goyal was a humble travel agent who cobbled together some funds and built a world class airline. Capital will eventually find entrepreneurs who have revolutionary ideas. In the past decade and a half, Kingfisher Airlines, which took over Air Deccan, Jet Airways, and Go First have gone belly up. SpiceJet, a remarkable feat of survival, has shrunk from 100 jets to under 30. All in all, more than 300 airplanes have exited the country. IndiGo has grown to become a large behemoth, but the market itself has not expanded proportionately. The Tatas have repossessed a doddering, bleeding Air India. And we now have a duopoly, which does not augur well.

Prime Minister Narendra Modi’s ‘Startup India’ campaign is laudable, but it must spread to other areas. Aviation is integral to equitable economic growth and to be globally competitive. With mega airports controlling air and ground space it’s well-nigh impossible to connect regional towns and large metros, despite the commendable UDAN initiative. And where slots are available with difficulty, costs are prohibitive. We need multiple airports that compete just as we need many airlines with different stakeholders.

Our air cargo growth is languishing. Hong Kong airport alone handles more cargo than all our 100 airports put together. Air cargo integrated with road, rail and ports is the artery of a growing economy.

Besides, the Maintenance, Repair and Overhaul (MRO) space is in an utterly dismal state. The labyrinthine taxes, customs and other duties and tortuous rules to bring in parts and repair and overhaul, and re-export or use on our aircraft is a deterrent and all airlines send their aircraft for major MRO to Dubai, Singapore or elsewhere. Similarly, the charter business has remained stagnant. It’s the training ground for pilots and engineers. The irony is that we have around 4,000 pilots and thousands of technicians who are unemployed, but we bring in foreign pilots and engineers, pushing up costs. The Directorate General of Civil Aviation cadre needs to be modernised, motivated and incentivised. It must be helmed by aviation professionals.

Despite these setbacks, there are silver linings. Whatever else India may not possess, it has an inexhaustible market and largely untapped potential. That gives hope. Policymakers need to ask themselves only one question: What should the government do to make common Indians fly? That will show the road map to the future.

The author is Capt Gopinath, Soldier, Farmer, and Entrepreneur. Views are personal.