Budget 2019: Giving wings to the aviation sector

The world’s seventh largest aviation market could finally have something to cheer about.

Three months after the country’s oldest private airline, Jet Airways, went bust. Finance Minister Nirmala Sitharaman has laid out a series of plans to lift the beleaguered sector. Hence, The government will bring out a policy framework for making India. A global hub of aircraft financing and leasing activities.

Globally, airlines purchase aircraft and then sell them to lessors from whom they then lease them back. Thus, Most of the lessors are based out of Europe, the US or China.

Finance minister Nirmala Sitharaman announced in the Budget. The government will unveil measures for aircraft financing and leasing activities in India. Additionally, As a means to make India’s aviation market self-reliant.

She also announced that the government for will come up with policy interventions. Hence for development of maintenance, repair and overhaul in India.

India’s aviation sector is facing headwinds. On account of higher aviation turbine fuel, lack of infrastructure at airports. Low capacity utilisation in flights to small cities among others.

The aviation sector players expect major boost from the Budget .Which include a much needed relief on the aviation turbine fuel. Hence ,aviation turbine fuel comprises a major component of the overall costs of running an airline.

Airline operators are facing a host of issues. Recently, the private carrier Jet Airways shut operations on account of failing to repay lenders. With the prospects of Air India’s divestment looking bleak. Therefore, The government needed to take immediate measures to rescue the aviation sector from crisis.

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