CAPA India notes key issues that it will be tracking over the next 18 months

CAPA India identified (Oct-2017) a series of critical issues that CAPA has identified in Indian aviation, noting that it would be regularly sharing analysis and research to help shape the industry, enable policy makers to pursue further reforms in the interests of the sector and to support the Prime Minister's transformational economic agenda over the next 18 months. Key strategic issues are as follows:

• Likely airport infrastructure constraints, and delays in the construction of new capacity, are becoming a challenge. CAPA India will benchmark how airside and landside productivity is improving, monitor the expansion of existing airports and track greenfield developments;
• An Independent Airports Commission is required to act as the custodian for planning the national airport system: CAPA India will present a roadmap for how this commission should take over such responsibilities from the Airports Authority of India;
• A complete revamp of the DGCA is a critical, national priority as the system is almost broken. CAPA India will be conducting a detailed study on the state of aviation safety in India by the end of FY2018, and its structural ability to manage growth;
• Bureau of Civil Aviation Security needs to be restructured to be able to face strategic threats and growth challenges: CAPA India will review the aviation security framework in India by end FY2018;
• A conducive fiscal environment is essential for the competitiveness and viability of the industry. Sales tax on aviation turbine fuel, airport charges and the impact of GST on the aviation sector will be closely analysed;
• Ease of doing business is important if the industry is to remain efficient and competitive. Sensible regulation and positive engagement between the industry and the DGCA/BCAS and other stakeholders is essential;
• Availability of skilled resources will struggle to keep pace with growth. A shortage of human resources - particularly commanders, maintenance engineers and air traffic controllers, as well as experienced management - will be a major constraint. A focus on education and training is essential for both productivity and safety;
• Bilateral restrictions are constraining capacity and represent a significant economic loss. Unrealised trade and tourism spend and missed opportunities for employment creation. CAPA India will be preparing a strategic framework to enable the government to make decisions on seat entitlements which are beneficial for the economy;
• Institutional capacity building at the Ministry of Civil Aviation can have a material impact: The Ministry has made significant policy announcements and demonstrated very positive intent over the last couple of years. CAPA India will consider how the implementation of policy initiatives can be made more effective, and present a realistic model for government-industry collaboration. [more - original PR]