5 Steps Govt of India should immediately take to save Aviation Industry

Corona Virus is causing huge damage across the Globe. Many people will suffer not because of Corona but due to bankruptcy . Across the World, Travel and aviation companies are badly hurt. I will suggest Govt of India to take following measures immediately to save Indian Aviation :

• Reduce the taxes on ATF .( Currently it is among highest in the World) : Fuel accounts for almost 40% of airline operating cost. Currently ATF is being taxed at 28% due which the price of ATF is very expensive for airlines and it is among most expensive fuel in the World. The demand across the country and worldwide has slumped drastically . The flights are going lesser than 50% on an average currently which will further go down due outbreak of virus.

• Reduce the Landing Parking and RNFC Charges

a) RNFC for Landing Flights:

RNFC = Rs.( R x D x W )
R = Rs.4620/-
D = √ (GCD/100) with GCD cap as 1200 NM
W = √ (AUW/50000) with AUW cap as 2,00,000 Kilograms

Abbreviations used:
R=Service Unit Rate
D=Distance Factor
W=Weight Factor
GCD= Great Circle Distance in NM
AUW = All Up Weight of aircraft in Kilograms

b) RNFC for Overflying = Rs.( R x D x W ) + Rs. 4,400/-

TERMINAL NAVIGATIONAL LANDING CHARGES (TNLC)

a)Major International Airports including Goa International Airport (Civil Enclave)

Aircraline pays Rs 6546 for every landing

Details of AAI Charges in India for Landing Parking, RNFC, Housing charges.

• Preserve Airline Slots incase Airlines are unable to utilize them due very poor demand.

Currently if a Airline doesn’t utilize a slot for 3-6 months ,airline will loose that precious slot and route allocated. There are 464 airports/airstrips in the country. Among these, the AAI owns and manages 125 airports and 26 civil enclaves at defence airfields and provides air traffic services over the entire Indian airspace and adjoining oceanic areas. Slot policy in India

• Funding should be given to airlines for managing day to day operations.

Aviation is extreme cash required sector. Day to Day and overhead cost is so high that in one month it can erode or completely take any airline out of business if situation remains same as of now. Airline are cash strapped and in desperate need of funds. Govt of India must extend the hand to help the airlines on immediate basis.

• Reduce the PSF so that ticket price will come down in order to increase the demand for airlines.

Passenger Service FeeThe new Passenger Service Fee (PSF) . Under the new formula, the airport can collect a fee equating to the Basic Airport Charge + 10% of said charge. As a result, a Passenger Service Fee of INR 77 will be levied. This fee is the same for both domestic and international travellers.