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Along with these were some other factors that
earned a bad name for the industry, such as the
scandal involving some pilots with fake licences,
three crashes and charges of predatory pricing
against some carriers when rivals faced a workers'
strike.
"Spiraling jet fuel prices and a high interest
rate regime in 2011 threatened the survival of
some domestic carriers," said Amber Dubey,
director, aviation for global consultancy firm
KPMG. "Our jet fuel prices are 50-60 percent
higher than global average."
The year was dominated by the struggle Air India
faced to stay afloat, as it continued to reel
under a huge debt, estimated now at Rs.43,777.01
crore towards purchase of new aircraft and working
capital loans.
This apart, the management faced three strikes,
mainly due to late payment of salaries and a problem
over the merger of Indian Airlines, which stranded
thousands of passengers, and added crores in losses
to the already bleeding carrier.
Other carriers also faced similar financial trouble
and even approached Prime Minister Manmohan Singh
last month to seek his intervention in at least
getting aviation fuel and loans at a cheaper rate.
Among the other carriers, Vijay Mallya-led Kingfisher,
which had acquired Air Deccan with much fanfare
in 2007, shut down the budget operations to concentrate
as a full-service carrier, while its market share
dropped to fifth from third in October.
The only carrier that remained a profit-making
operation was low-cost IndiGo, which also hit
the headlines by announcing a huge order for 180
aircraft from Airbus Industrie worth as much as
$15.6 billion.
Indian carriers, which flew 55 million domestic
passengers between January and November against
46.8 million in the like period of last year,
also utilised just 20 percent of their overseas
entitlement, against 39 percent into India by
foreign airlines.
Rajiv Gandhi Bhavan, which houses the civil aviation
ministry, also saw a change of guard with Praful
Patel first being replaced by Vayalar Ravi earlier
this year and then Ajit Singh taking over last
week.
Some key reforms remained unattended.
"There is need to expedite big-ticket reforms
like allowing foreign airlines to buy stake in
domestic carriers and rationalisation of federal
and state levies on jet fuel," said Dhiraj
Mathur, executive director with PricewaterhouseCoopers.
According to ministry officials, all these may
be factored in when a new civil aviation policy
is announced -- over the next five months.
Following are the highlights of India's aviation
industry in 2011:
- -Air India's debt rises to Rs.43,777.01 crore
- Three strikes by Air India staff hit carrier,
leaving passengers stranded
- Vayalar Ravi takes over the civil aviation
ministry from Praful Patel
- Concern over security as some pilots charged
with producing fake licences
- IndiGo places order for 180 aircraft with
Airbus worth $15.6 billion
- Kingfisher shuts budget operations, the erstwhile
Air Deccan
- Prime Minister Manmohan Singh meets the airline
chief
- After Praful Patel and then Vayalar Ravi,
Ajit Singh named Civil Aviation Minister
(IANS)
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