Budget 2024: What India’s aviation sector needs from Nirmala Sitharaman for a long flight

Budget Expectations: The aviation sector is advocating a series of measures in Budget 2024 to overcome current challenges and support growth. The focus is on enhancing regional connectivity, expanding airport infrastructure, and supporting domestic maintenance, repair and overhaul (MRO) and aircraft leasing.

ENHANCED REGIONAL CONNECTIVITY: Strengthen regional connectivity scheme (UDAN) to improve access to underserved and remote regions, boosting connectivity and tourism. “The Indian aviation industry expects a continued focus on enhancing regional connectivity through UDAN and expanding airport infrastructure to support growth,” said Kinjal Shah, Co-group Head, Corporate Ratings, ICRA.

INCENTIVES FOR MRO SECTOR:Provide financial incentives domestically, reducing reliance on foreign facilities, fostering local industry growth.

PROMOTION OF AIRCRAFT LEASING: Create policies, develop infrastructure to promote growth of aircraft leasing sector within India, supporting fleet management and expansion. PROMOTION OF SUSTAINABLE AVIATION PRACTICES: Support adoption of eco-friendly technologies, sustainable practices to align with global environmental goals and reduce industry’s carbon footprint. “The immediate focus should be on ensuring aviation sector sustainability by addressing current issues such as airline closures and high airfares. Practical solutions should be prioritised over ambitious, high-risk projects,” said Mark D Martin, CEO of Martin Consulting.

REVAMPING PAWAN HANS: Overhaul Pawan Hans with a new fleet to ensure it continues to effectively support critical offshore oil, gas operations.

DEVELOPMENT OF CARGOCENTRIC FACILITIES: Invest in development of cargo-centric airports, facilities to improve logistics, supply chain efficiency.

MONETISATION OF TIER 2 AIRPORTS: Set a clear timeline for monetisation of tier 2 airports to fully leverage their potential, benefit various stakeholders. “The budget should include increased spending on building new airports, developing cargo-centric facilities, and setting a timeline for monetising tier 2 airports to benefi t stakeholders and enhance regional aviation,” said Jagannarayan Padmanabhan, Senior Director, Crisil.

MODERNISATION OF AIR TRAFFIC MANAGEMENT: Allocate funds to modernise air traffic management systems to enhance efficiency, safety, reduce operational delays.