PHD Chamber of Commerce and Industry hosted an interactive webinar on ‘Aviation Industry’s Route to Recovery’ with a presence of delegates from government and various verticals of the industry. Usha Padhee, IAS, Joint Secretary, Ministry of Civil Aviation emphasized the need to create an institutional mechanism where both the Govt. and Industry can work together. She highlighted that the Government is focusing on policies and restructuring reforms which will help in bringing back the confidence of the passengers in the Aviation Sector. She emphasized that the Government must bring biosecurity components in air travel which is of paramount importance with a multi-level approach.
Bart D’Souza, Head Aerospace, India British Deputy High Commission while deliberating on the current crisis in the Aviation industry mentioned that aviation has the tremendous capability of growth with advanced technologies like automation and artificial intelligence. Talking about consumer confidence which remains a key element, he said that it will take some time to restore. While discussing the industry’s route to recovery, he shared that this pandemic has given us shocks leading to a change in the business landscape and operating environment. He also discussed the optimistic initiatives taken by the government to boost the industry and assured that more will be done shortly. He said that looking back, this has been an opportunity in terms of capacity utilization and the successful implementation of some international cargo projects.
Dr. Ahmed A.R. Albanna, ambassador of the United Arab Emirates to India, while apprising the strategic relationship between UAE and India, highlighted that Air Cargo is one segment that has not been majorly affected by COVID-19 crises. He discussed creating a hub in India that will benefit the relations of India and UAE. The travel and tourism industry plays a major role in the GDP of the economy of UAE, vital for economic development especially for creating employment opportunities, leveraging economic activities, and international relations.
The session had deliberation from industry stalwarts from the Airline sector which included Ajay Singh, Chairman & Managing Director, Spicejet Ltd, Sunil Bhaskaran, Managing Director and CEO- AirAsia (India) Ltd. and Sanjay Kumar, Chief Strategy & Revenue Officer, IndiGo.
Ajay Singh shared the new procedure to be followed in the airport and flights ensuring contactless, safe, and seamless traveling. He shared that there is a need to build confidence among the masses which can be done with the dissemination of information. He said that we have to think out of the box. We need to use this opportunity to try and collect the imbalances in the industry like the structural problems, get aviation turbine fuel under GST and tackle this crisis into an opportunity.
Sunil Bhaskaran while sharing the airline perspective shared his views that one should utilize the crisis time to uplift the Indian Aviation Sector and create policies for the benefit of the sector. He shared that there is a rapid change in the working of this industry and a new protocol has been followed. There is a shift towards contactless and using digital for moving the upper scale. Sanjay Kumar stated that the airline industry is going through turmoil and there is an urgent need to build the confidence of the people. We need to improve infrastructure, reduce financial costs, and increase the load factor. Pradeep Panicker, Chief Executive Officer, GMR Hyderabad International Airport Ltd while deliberating about the situation of Airports post lockdown, mentioned that airports are doing their bit to ensure the safety of the passengers and as well as of their employees.
Dr. D.K. Aggarwal, President, PHD Chamber of Commerce and Industry in his remarks mentioned that while this pandemic has disrupted the world and every sector, it has affected the aviation, travel, and tourism sector. Taking about the losses and future growth of the industry, he deliberated about the drop in the number of flyers due to the fear of catching the virus despite preventive measures and protective standards set by the flights. He gave some suggestions which can give ignition to the industry which include the announcement of the package for the aviation sector; reduce taxes; bring AFT in the GST net and subvention of airport changes.
Arun Bhagat, (GMR-DIAL) & Chairman, Civil Aviation Committee, PHD Chamber said that there is a drop in the cargo revenue of the global economic slowdown. There is a need for a quick restart of international flights, an increase in the frequency of trunk routes, and a comprehensive plan to revitalize the value chain. There is a need to bring passengers confidence back into the Aviation Sector.