Indian Aviation industry has recklessly suffered from the pandemic. With the new Minister in position everyone is counting on Jyotiraditya Scindia to implement some reforms.
The civil aviation industry, is facing huge losses due to the ongoing pandemic. Everyone’s eyes ate now betting on newly-appointed Union civil aviation minister Jyotiraditya Scindia to accelerate key reforms long sought by the sector.

Industry’s demands include a cut in taxes on jet fuel and the removal of capacity and fare caps.
Hike in Jet fuel prices
The industry has been demanding a cut in taxes on jet fuel to make it more affordable and the removal of capacity and fare caps.

Airlines believe, it will play a major role in the long-term viability of the sector.
Taxes on the fuel
- Taxes on jet fuel in India are one of the highest in the world and should be reduced to facilitate the recovery of the sector.
- Jet fuel should be immediately brought under the ambit of the goods and services tax, said an industry professional.

“The cap on fares and capacity should be removed and the government should allow free-market economics to play out (in the sector) for it to be able to thrive,” the official said.
Jyotiraditya Scindia
Scindia’s appointment has rekindled hopes of a speedy approval to the industry’s requests.

“We are hoping that a young, modern and tech-savvy minister will realise the importance of technology, competition from UAE and take policy decisions to benefit the sector,” said Sanjay Julka, chief executive officer, technical, Club One Air.
He also added-
- We are expecting rules and regulations to be brought on a par with world standard as Directorate General of Civil Aviation (DGCA) regulations are still not on a par with that of US, EU regulators.
- Also, we haven’t kept pace with technology changes.
- And organizations like DGCA and Airports Authority of India could do with better response and accountability.
Hardeep Singh Puri & Aviation Industry
He added that former aviation minister Hardeep Singh Puri, now heads the petroleum ministry. But, before leaving he could help push for bringing jet fuel under GST as he understands the challenges faced by the aviation sector.

“This is the right time to achieve these changes,” he said.
Information Source: www.Livemint.com
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