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Govt. is watchful of developments in Jet Airways; airline has not approached us for help: Civil Aviation Secy

 

Friday, August 10, 2018

MoCA working towards target of 1 billion passenger trips: Jayant Sinha
 
New Delhi, August 10, 2018: The government is watchful of the developments in Jet Airways as it would not like a situation where an airline faces difficulties, Civil Aviation Secretary, Mr R.N. Choubey said at an ASSOCHAM event held in New Delhi today.
 
“Jet has not approached us as yet, they are not bound to inform us but then when airlines get into difficulty they normally come to us. There are a couple of things which we are doing and the DGCA will also be looking at,” said Mr Choubey while inaugurating an ASSOCHAM International Conference on Civil Aviation and Cargo.
 
“We are not planning to do any financial audit from government side, we will just be watching the developments in Jet,” he added.
 
Mr Choubey informed that Ministry of Civil Aviation along with International Air Transport Association (IATA) and Airports Authority of India (AAI) would celebrate in September 50 months of continuous, uninterrupted, highest double digit growth in the world. “It is not easy to have achieved that, it is not easy to have achieved the kind of connectivity connecting small towns and cities which has been done.”
 
He also said that Ministry was aware of the challenges being faced by the sector and there was need to reduce costs both at the airports and as far as aviation turbine fuel (ATF) was concerned. “Our ministry is working on that, our ministry is working on creating airport infrastructure, creating an overall ecosystem where this growth rate is sustained, where we make sure that we prove to be the locomotive as far as global civil aviation is concerned.”
 
He said while one of the biggest challenge being faced by the MoCA was that of airport infrastructure, the related challenge was from the skill side i.e., how to make sure that adequate number of skilled people are available for taking this growth forward.
 
“In the next five years, sector as a whole we would be investing Rs 1.5 lakh crore in airports, we would investing Rs three lakh crore in airline side and we are committed to make sure that this investment happens very speedily,” said the aviation secretary.
 
Conceding that his ministry was aware of the challenges and difficulties that are brought about by a healthy competition, Mr Choubey said, “While the passenger load factors are very healthy, yields are softening up, that of course only means that those players whose cost structures are efficient are going to keep growing but at the same time our ministry is conscious of the issues.”
 
Earlier in his address at the ASSOCHAM conference, Union Minister of State for Civil Aviation, Mr Jayant Sinha said that considering a strong underlined demand, India’s civil aviation sector will continue to grow 12-14 per cent a year and thus the government was now planning for a billion trips.
 
“If we are 200-250 million trips this year, we really have to think ahead and think of a billion trips and that is what we are thinking and that is what we are working towards,” said the Minister.
 
He however said that there was a need to unlock and make sure that all markets be it international, national, regional, remote, helicopter services, cargo and logistics, ground handling, drone industry and others  work very well.
 
“The demand for aviation services in India is very strong, the challenge for us from policy point of view has been to understand that each of these markets are differentiated,” said Mr Sinha.
 
He added that differentiated policies and approaches were required and then government would work together with the industry to unlock these markets and enable them to flourish.
 
The Minister blamed the policy paralysis during the previous government regime for there was virtually no growth between 2012-13 and the beginning of 2014. “There was no capacity at all and part of that was because of Kingfisher going out of the system, so we had 2-3 years virtually of no growth.”
 
He also asked the industry to keep finding faults with Civil Aviation Ministry’s working for them to improve further and serve in a better way. “You have given us your direct and straight feedback and told us what is working and what is not that we have been able to address these issues, so please keep bringing us our defects, keep telling us what is wrong with us.”
 
Addressing the ASSOCHAM conference, Mr Ajay Singh, chairman and managing director, SpiceJet urged the government to bring down costs for aviation industry for it to take off. “Bringing down costs would help Indian airlines match up with their global counterparts.”
 
He also said that it was an opportune time for India to garner major share of global aviation business in wake of US-China trade dispute.
 
 
About ASSOCHAM:

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
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AVDHESH SHARMA    
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ASSOCHAM    
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