While the country as a whole suffered immensely and every sector got impacted negatively because of economic slowdown in 2013, civil aviation industry on the other hand is on the verge of getting out of long-drawn crisis with air traffic on an upward growth trajectory primarily because of rationality adopted by different airlines.
The year 2013 will also be an important milestone for civil aviation industry as the Government allowed foreign airlines to pick up stakes in Indian carriers. Consequently, we could see Jet-Etihad deal, AirAsia India and Tata-Singapore Airlines joint ventures, which, experts say, are going to give industry a new direction.
The Government is also alive to the need of Indian air carriers, who want to fly abroad without completing pre-conditions. Currently, Indian carriers need five years of operations and a fleet of at least 20 aircraft to start international flights.
“I personally see no logic in such a rule. I feel there should not be any cap, but I have asked Directorate General of Civil Aviation (DGCA) to look into the issue and suggest. Accordingly, we will move the Cabinet,” said Civil Aviation Minister Ajit Singh while talking to select mediapersons recently.
All Indian airlines excluding GoAir have been flying overseas fulfilling these requirements, but changes in these norms are being keenly awaited by two start-up airlines, AirAsia India and Tata-Singapore Airlines. Meanwhile, GoAir has also urged the Civil Aviation Ministry to consider relaxing rules.
Even State-run carrier Air India improved its performance significantly in 2013 though never ending glitch with its newly-acquired Boeing 787 Dreamliners took some sheen off its achievement.
“In the previous financial year, its EBIDTA was in losses to the level of `2,300 crore. This year, it aims to earn a positive EBIDTA of `1,000 crore,” Ajit Singh had said.
“Air India is also meeting operational costs on almost 70 per cent of its domestic routes, up from the 30 per cent earlier, as also on all foreign routes flown by its newly-acquired Boeing 787 Dreamliners,” he added.
Paving the way for Air India's entry into the largest global airlines' grouping, Star Alliance unanimously decided to recommence the integration process that was suspended in 2011. Air India was originally accepted as a future member of Star Alliance in December 2007.
As regards air traffic, domestic carriers flew over 4.5 per cent more passengers till November this year compared to the same period last year. In November alone, the domestic carriers flew 51.37 lakh passengers, registering a growth of 2.33 per cent over the 50.20 lakh passengers flown by them in the same period of the previous year.
Between January and November, the airlines carried 558.39 lakh people compared to 534.25 in the same period last year, registering a growth of 4.52 per cent, the data released by the Directorate General of Civil Aviation showed.
IndiGo remained the market leader cornering 28.6 per cent share having carried 14.68 lakh passengers. The carrier also defied market dynamics to announce a hefty profit of over `900 crore.
Air India edged out SpiceJet from the second position with a market share of 19.3 per cent and passenger numbers at 9.89 lakh.
SpiceJet was a close third at 19 per cent flying 9.75 lakh passengers in November. Jet Airways and Jetlite together had a market share of 24.1 per cent carrying 12.42 lakh. GoAir had 8.8 per cent market share and flew 4.54 lakh passengers last month.
While Kingfisher formally closed shop with its flying licence suspended in January leaving many of its unpaid employees in the lurch.
Tenures of officials holding crucial positions in the Civil Aviation Ministry came to an end this year, with the retirement of Secretary KN Srivastava and DGCA chief Arun Mishra being appointed by the International Civil Aviation Organisation (ICAO) as its Asia-Pacific head.
Experts say, 2014 would be quite competitive and in a way more consumer oriented also because of expected functionality of AirAsia India and Tata-Singapore Airlines.