Eighth penalty since 2023; aviation sector in mud

Air India is fined for the eighth time since January, 2023.  A trainee pilot was placed with a non-training captain in the cockpit since the training captain fell ill.

The aviation sector grew by 10% of CAGR (Compound Annual Growth Rate) owing to the government’s boost in infrastructure and the economy. However, issues persist.

Jet Airways, Go First, Spice Jet, Air India, Kingfisher have suffered from a variety of issues like, employee protests, piling losses, mounting debts, and unprofessional conduct.

Kingfisher

The company’s founder, Vijay Malya, is absconding. Launched in 2005, the airline had early success and rapid expansion until 2008. The cost of logistics rose, and the ratio of profit declined. In 2012, the airline was closed, leaving employees stranded.

Spicejet

The airline faced a shortage of flights; due to two massive crashes of MAX-8 aircraft. Spicejet took 30 planes from Jet Airways, and in a few months, the pandemic hit. Now, the airline had no demand and idle planes. The company has been struggling both in the market and at the National Company Law Tribunal.

Jet Airways

From purchasing Air Sahara for 500 million dollars in cash and, in a bid to maintain revenue, to neglecting how the consumer prefers affordability over luxury, Jet Airways had internal ruptures. Micromanagement by its founder, Naresh Goyal, ignoring professionals, led to bad investments.

Go First

Filing for bankruptcy and shutting down business within a week, Go First had a structural fault. Sole dependence on Pratt and Whitney engines having durability issues, and the exporter failed to provide the given consignment. Same engine issues are being faced by Indigo. Half of Go First’s fleet is unavailable, incurring massive losses.

Air India

One of the finest airlines globally, Air India, was rescued with the efforts of the Government of India. Delays, passenger inconvenience, merger with Indian airlines and poor interiors, are some of the many causes of the airline going into trouble.

Despite privatization, the sector is grappling with past failures, poor management, and risky moves. UDAN– Ude Desh Ka Aam Nagrik, though laudable, is able to provide services on only 7% of the permitted routes, as reported by the Comptroller and Auditor General of India.

The aviation section is booming and highly competitive. The Government should play the role of spectator and instead of bailing out, encourage a business mindset and interfere in  management practices when needed. The last moment bailing out leads to a load on the exchequer. As for the aviation sector, customer dissatisfaction, dependence on  imports, poor administration, and mindless acquisitions are to be looked out for.

Also read https://test.inpactimes.com/shifting-sands-the-indian-diaspora-and-2024-elections/ .