Indian aviation sector takes a pause for safety’s sake

Air travel is supposed to be quicker and more convenient than either road or rail transport. The luxuries of a first class railway berth may not be available on a domestic flight but one reaches the destination much quicker and in relative comfort.This axiom has been tested to the limits, however, in recent times as passengers on any Indian airline have found flights lacking several cabin amenities. A common complaint is poor air conditioning while others include faulty seats and even back rests patched together with tape.A cabinet minister once got a broken seat while others have found inflight entertainment missing despite the presence of screens.These might all seem to be minor irritants compared to the tragedy that unfolded in Ahmedabad on June 12 with the Air India crash. It does, however, indicate a laissez faire attitude to customer comfort issues.In this context, one may recall that crime rate in New York in the 1990s dropped dramatically when the police authorities decided to focus on dealing with minor crimes. Known as the "broken windows" approach, it led to a sharper fall in violent crimes in the metropolis than in the US as a whole.It was found that effectively dealing with smaller infractions actually led to a decline in the overall crime rate.While the analogy is certainly not precise, one is bound to assume that airlines which are not overly worried about air conditioning failures or seat quality issues, may also not be as vigilant in other areas.It is encouraging that carriers have recently taken these shortcomings more seriously. At least one aircraft is reported to have been diverted and brought to the nearest airport following such a malfunction.It can only be hoped that the Indian airline industry which is second only to China in its pace of growth, has recognised that expansion and profitability must go hand in hand with an intensive focus on maintenance, safety and consumers' needs.All these issues have come into the spotlight after the devastating Air India crash, which has created a fear psychosis even among regular air travellers.Prior to the unfortunate event, it could have been declared with confidence that the country is well on the way to becoming one of the largest aviation markets in the world. Now, there is no doubt that the pause button has been hit for domestic aviation. Air India, for instance, which was in the process of revival, after being privatised, has already reduced the number of international flights.Such a pause is timely as maintenance and safety issues need to be given much greater attention, not merely in the light of the crash but also to meet the needs of rising passenger loads.A heartening development in this regard is the decision of the regulator, the Directorate General of Civil Aviation (DGCA) to launch a comprehensive special audit of the entire aviation ecosystem. It will range from all types of airlines, maintenance and repair organisations, flying schools, airport operators and even ground handling agencies.There is some scepticism given the fact that the regulator has been carrying out audits in the past as well. But one must hope this review is taken up with a greater sense of urgency and it manages to unearth lacuna wherever they exist.The strictness being displayed by the DGCA recently on extending pilots operating times was also overdue, given that this seems to have become a regular occurrence in some carriers.These measures must be viewed in the backdrop of an aviation industry that has been facing turmoil over the past few years.One reason has been the unexpected closure of major airlines like Jet Airways along with entry of new players like Akasa Air and the resurgence of the formerly state-owned Air India under the Tatas.Economic viability of airlines has also been an area of concern with high jet fuel prices leading to razor thin margins in an industry that continues to see a high rate of drop-outs. The result of the shake-out in recent years has been that two major airlines — Indigo and Air India — are dominating the skies.Indigo has about 64 per cent of the market share while Air India has another 24-26 per cent. A duopoly cannot be in the consumers' interest as there will be fears of collusion in fixing fares as well as reduced interest in passenger amenities.These are real concerns at a time when airlines are raising flight frequencies to meet growing demand for air travel.According to a recent report of the International Air Transport Association (IATA), scheduled flights have risen sharply from 613,000 in 2014 to nearly 1.1 million in 2024.The country's aviation sector now accounts for 1.5 per cent of GDP and has created about 7.7 million jobs, both directly and indirectly. It has also become the sixth largest air cargo market in the world.There can be no doubt, as the report says, that the industry has been a key driver of employment, investment and international trade.India's emergence as a major player in global aviation has been achieved by the rapid pace of growth over the past two decades.Passenger traffic has been rising at the rate of seven to eight per cent and is currently at ten per cent. As a reality check, however, India's 174 million passengers in 2024 accounted for only 4.2 per cent of global passenger traffic compared to 16.7 per cent for China and 18 per cent for the US.So this country still has a long way to go to catch up with world leaders in aviation. Yet there is no need to expand in haste as this can wait till all regulatory issues are dealt with in the coming months.The reasons for the Ahmedabad crash are not known as yet and could well point to manufacturing defects. Even so, it is important to ensure that the aviation ecosystem is reviewed rigorously by the regulator.The growth of the aviation industry must take a back seat right now while safety and maintenance is accorded the highest priority.Sushma Ramachandran is a senior financial journalist.

Indian aviation sector takes a pause for safety’s sake

Sushma Ramachandran

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