Issues and Challenges


The issues and challenges faced by the aviation sector are:

  • High prices of Aviation Turbine Fuel (ATF):
    • Fuel prices forms the significant portion of operational cost of airlines.Increase in prices will automatically effect not only the profitability but will also influence other supporting services of the aviation industry.
  • High airport charges:

               The airport (aeronautical) charges imposed by the Indian airports are the Second highest amongst

               the  Asian and Gulf countries, after Hong Kong. The Airports/aeronautical charges include:

    • Landing, Housing and Packing Charges
    • Route Navigation Facility Charges (RNFC)
    • Terminal Navigation Landing Charges
    • User Development Fees (in case of private airports)
    • X-ray Baggage Charges
  • Safety and security:
    • After the 1999 Kandahar hijacking the CISF (Central Industrial Security Force), a paramilitary organization is in charge of airport security under the Bureau of Civil Aviation Security regulation framework and instructions.Central Industrial Security Force formed an Airport Security Group, which isCommitted to protect Indian airports. Each and every airport has now been given an Airport Security Unit, a highly trained unit so as to mitigate unlawful Interference with civil aviation. Also each airport has a separate securitydepartment in addition to the Central Industrial Security Force.
  • Shutting of old airports:
    • The Government is on the verge of finalization of the model concession agreement for public-private partnership concessionaire. It will be vital for the government to incorporate suitable provisions enabling a smooth land acquisition process devoid of damage of any concerned stakeholders. The government should acquire land in advance before the contract is awarded to the concessionaire.
  • Regional connectivity
    • Though there are a large number of airlines operating, still there is lack of regional connectivity
    • Providing regional connectivity is one of the greatest challenges for the Aviation sector in India. This is due to lack of airports and other associated infrastructure
  • Lack of technical manpower:
    • Shortage of manpower is the significant problem faced by the Civil Aviation Sector particularly in the technical domain.
    • Likewise, with increase in the number of flights and new airports the demand for Aircraft Maintenance Engineers and Air Traffic Controllers will also increase. The requirement for the technical manpower appears negligible as compared to the population of more than one.
  • Reduction in profitability of airlines:
    • In spite of the 20-25% year-on-year growth in terms of passenger/cargo volumes, it has been noticed that the airlines have reported losses over thePast three years.
  • Aftermath of the COVID-19 pandemic:
    • The pandemic was among the greatest challenges the aviation companies ever faced, with its impacts continuing even after travel restrictions are lifted in many parts of the world. According to the IATA report, the pandemic erased essentially 20 years of gains in passenger traffic in one sudden blow. The report forecasts that by 2040, air traffic would still be 6% below IATA’s pre-pandemic forecast, highlighting the long-lasting effect of the COVID-19 crisis.