New reforms in airline industry
Will the reforms lift airline industry ?
The airline industry in India is rapidly affected by the deadly coronavirus. For the past two months since the lockdown commenced the industry is in a frozen stage. To kick start the airline industry the Finance minister Nirmala Sitharaman announced some reforms. The reforms are expected to result in the shortening of air routes, reducing the cost of fuel apart from the shorter duration of the flights.
The government of India also revealed that six airports will be put for bidding under the public-private partnership. As a result of this reforms private players in the industry will invest Rs 13000 crore extra for the 12 airports awarded to them and the state AAI will receive from this privatization process Rs 2300 crores extra.
The government also said that India has become a hub for maintenance, repair, and overhaul(MRO) units, since the GST rate associated with it has been reduced from 18% to 15%. An airline senior official said that the government’s proposal disappointed the industry very much since there were no great relief measures. He also added that 2 or 3 airlines may not survive in the current crisis.
The airline official also said that the new reforms are just to rearrange the chairs in the Titanic ship to reduce the buffet queue but the big hole from the iceberg still taken in water. Another official from the same industry said that the airline industry needed direct cash infusion. He also added that some of the old announcements are reformed as new ones.
He suggested that the airline industry needs funding up to Rs 3500 crores till 2022-2023. Not only airline industry many sectors are severely affected by lockdown. The economy is affected badly. The companies are forced to lay off their employees in this worst economic situation and need to balance the work with minimal employees. The COVID and hunger are guns pointing towards us in this current scenario
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