2021 vision: What will change for Indian aviation?

If Covid is conquered and normalcy returns, the sector should see a lot of action, from the Air India and airport privatisation, to the Tatas’ interests in the sector, to Jet Airways trying a phoenix act. What could be in store in the year ahead? Read on to find out

There probably has never been a year as turbulent as 2020 for aviation. Last December, as the industry headed into 2020, the hot topics being discussed were the promoters tussle, pilot shortage and neo engines. The year shaped up in such a way that the tussles took a back seat (at least publicly), pilots were available in abundance — with many in West Asia losing their jobs — and the neo engines stabilised — even if they hadn’t, airlines weren’t using the full fleet anyways.

While 2021 was all about the raging pandemic and a new normal, 2021 may be all about vaccines and their success, for Indian aviation.

Privatisation of Air India

The pandemic couldn’t have come at a worse time for the disinvestment programme. With the government pushing for a 100 percent divestment of its stake in both Air India and Air India Express, many bidders were expected when the process started in January. Alas, the world economy started tanking and the situation became grim soon after.

Multiple extensions later, there finally are bidders who have submitted their Expressions of Interest (EoI). Early January, one would know their seriousness and how the negotiations will proceed. The virtual data room, which the airline will throw open for potential suitors, will be a goldmine of data for everyone. Air India is likely to post losses of Rs 8,000 crore in the current fiscal year. That’s the kind of money Kingfisher Airlines owes banks.