As the results of the Lok Sabha elections came in, it became clear that the exit polls were wrong. Although the Bharatiya Janata Party (BJP) did not win a simple majority, it is likely to form the government for the third consecutive time under Prime Minister Narendra Modi.
This means allies in the National Democratic Alliance (NDA) now have significant bargaining power. The Civil Aviation Ministry might be one of the key ministries up for negotiation. Previously, during Modi's first term, the Minister of Civil Aviation was Ashok Gajapathi Raju from the TDP until he resigned after the TDP withdrew support. While the BJP could govern without allies before, the 2024 scenario is different, and the ministry's agenda might change.
Capacity augmentation: India has some of the best airport terminals, but they suffer from long queues at security and immigration due to lack of standardization. The new Civil Aviation Minister must work with other ministries to resolve these bottlenecks.
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DigiYatra implementation: The DigiYatra app, meant to streamline passenger check-ins, has faced issues. Rapid implementation across all airports is needed to reduce queues and improve passenger experience.
ATF in GST: Airlines have long demanded that Aviation Turbine Fuel (ATF) be included in the GST. ATF costs account for 35% to 40% of airline expenses. Including it in GST would simplify taxes, reduce costs, and attract more flights.
Training Facilities: While the government has established Flight Training Academies, some suffer from poor quality, leading many cadet pilots to train abroad. The government should incentivize airlines to partner with Indian academies to complete training domestically.
Hub development: There has been talk of creating hubs for international transfers. Infrastructure development, including new terminals, should be a focus. However, some terminals inaugurated before the election are still not operational.
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The government has ambitious plans, such as opening 100 new airports by 2024 under the RCS - UDAN scheme. As of now, this goal seems unlikely to be met. With the formation of the new government, it remains to be seen if Prime Minister Modi will continue with the current minister or if the Civil Aviation Ministry will be part of the allies' bargain.
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