Aviation sector will takeoff, new airline companies ready to jump in the market

Many new companies are preparing to enter the airlines sector (indicative picture)

Efforts are also on to give wings to Jet Airways again. Jet Airways has successfully operated all the test flights and is now waiting to get the Air Operator Certificate (AOC). That is, soon you can see Jet Airways flights in the sky.

Praveen Sharma

The domestic was in troubled times for a long time aviation industry ,Aviation Industry) days seem to be turning. Companies and entrepreneurs are trying to revive this sector. It is obvious that they are seeing opportunities for earning in this business. That is why along with the closed airlines, the wings of big loss making airlines are being put to life, as well as new aviation companies are also preparing to jump in the market. So after all, what is happening in this sector, all those who are eager to enter here? Meaning, now the traffic is going to increase in the sky too. Before coming to this question, let us see the list of companies which are going to enter the domestic aviation industry. First the legendary Air India (Air India) let’s talk. Which has recently been bought by the Tata Group from the government.

Now the N Chandrasekhar-led Tata Group is working vigorously to bring back Air India’s old glory. The second thing closed down Jet Airways. Efforts are also on to give wings to Jet Airways again. Jet Airways has successfully operated all the test flights and is now waiting to get the Air Operator Certificate (AOC). That is, soon you can see Jet Airways flights in the sky.

Akash Air in preparation for flight

Not only this, the preparations to fly Akash Air of veteran investor Rakesh Jhunjhunwala are also going on in a tremendous way. It is believed that from July, Akash Air planes will start commercial operations. Akash Air has got the airline code. Its code will be QP. All airlines have a designer code. For example, Indigo is coded as 6E, GoFirst is coded as G8 and Air India is coded as AI. The airline has received NOC from the Ministry of Civil Aviation in August 2021 to start commercial flight operations. That is, in the coming times, ships of different companies are going to be seen flying on the Indian skies.

New stir in the aviation sector

Due to this, the era of a tough competition in the aviation industry is also seen starting. But, what has happened that has started a new stir in the aviation sector? Actually, the first major reason for this is that the number of air travelers in India is increasing rapidly. The figures clearly prove this point. For example, in March this year, domestic air passenger traffic grew by 36% as compared to March last year. According to the Directorate General of Civil Aviation (DGCA), 1.06 crore people have traveled by air in March 2022. In March 2021, this number was 78.22 lakh. On a quarterly basis, 76.96 lakh people traveled by air in February this year.

If we talk about January to March 2022, then domestic airlines carried 248 lakh passengers during this period. In the same period a year ago, this number was 233.83 lakh. In this way, it shows 6.06 percent growth on a yearly basis. A major reason for the increase in the number of air passengers is the end of restrictions after Kovid. Tourism and travel are picking up again and people are moving on a large scale. The second thing is that the losses of the airlines are decreasing. Statistics show that in the first half of the financial year 2021-22, the listed airlines – IndiGo and SpiceJet together had a loss of Rs 5,901 crore. The reason for this was Kovid and expensive Aviation Turbine Fuel ie ATF. But, in the later stages, this deficit has been shown to reduce.

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Talking about the entire 2021-22, the net loss of domestic airlines is expected to be around Rs 25-26,000 crore. Although it is still a big challenge for the industry, but the sector is in recovery mode and losses are coming down. It is estimated that in 2022-23, the loss of airlines can come down to Rs 15-16,000 crore. That is, the current situation is pointing to the improvement in the aviation sector. This is the reason that from all the closed airlines to new airlines are desperate to enter the aviation industry.