Aviation was one of the most affected sectors during the pandemic, yet the services it provided to the people during that time have been admirable. The Civil Aviation Ministry remained steadfast during this difficult period and played a major role in the transportation of logistics across the country.
Last fiscal, domestic passenger traffic at Indian airports declined by 62%, while international passenger traffic fell by 85%. Private aviation companies struggled to survive, and the government incurred losses amounting to thousands of crores.
So, what was the plan executed to revive the industry and bring passenger traffic back to pre-COVID levels?
Jyotiraditya M. Scindia said that aviation was the sector hardest hit by the pandemic. It almost came to a standstill. He further added that during the first wave, passenger traffic declined from nearly 144 million unique passengers annually to almost zero. However, after the second wave, it gradually began recovering.
He mentioned that capacity caps and fare caps were introduced to create an insulated environment in which the industry could continue functioning. This ensured that all players survived, retained reasonable market share, and generated some level of revenue. From July to October last year, the sector sequentially increased capacity from 50–62% to 75–82%, before restoring full capacity to 100% on October 18. Before the pandemic, passenger traffic averaged around 4 lakh passengers per day. By November and December, the sector was recording approximately 3.8–3.9 lakh passengers daily, reaching within 3–4% of pre-COVID levels, demonstrating the resilience of the industry.
When the Omicron wave emerged, passenger traffic once again declined by nearly 65–70%. In physics terms, the amplitude was high, but the wavelength was equally narrow. Nevertheless, Jyotiraditya M. Scindia expressed confidence that passenger traffic would soon surpass pre-COVID levels, supported by new demand, additional capacity, the revival of Jet Airways, and the launch of Akasa Air.
When discussing infrastructure, it is important to note that aviation extends beyond airports. It also includes highway connectivity, hospitality, and tourism, all of which work closely with the aviation sector. So, how did aviation, together with tourism and hospitality, contribute to economic recovery and the revival of jobs lost during the pandemic?
Jyotiraditya M. Scindia explained that although the railway network has deep penetration across the country, people increasingly prefer air travel to save time, resulting in growing demand for airline connectivity. In terms of economic output, civil aviation contributes a multiplier effect of approximately 3.25%.
The employment multiplier from aviation alone is close to 6.1%, meaning that every direct job created in civil aviation generates approximately 6.1 indirect jobs. Civil aviation is therefore an important pillar of the country's economic growth. This is one of the reasons why the Prime Minister has placed significant emphasis on the sector through the UDAN Programme, which subsidises rural and urban air connectivity. As a result, 65 new airports and heliports have become operational, along with more than 400 new routes. Additionally, the proposed PM Gati Shakti Programme is expected to create unprecedented infrastructure connectivity, delivering substantial economic benefits.
As aviation continues to develop drone corridors and the government has included drones under its Production Linked Incentive (PLI) Scheme, many are asking when drones will become part of routine operations and how they will reshape the aviation landscape. Responding to this, Jyotiraditya M. Scindia said that every five to ten years the world experiences a major technological disruption. Just as mobile phones transformed communication, drone technology is expected to become the next positive disruptive force. The drone ecosystem consists of multiple value chains. The first is production, the second is service delivery, and the third is employment generation. If these elements come together successfully, India has the potential to become a global drone hub by 2030.
Considering all these developments in the aviation sector, Jyotiraditya M. Scindia concluded that civil aviation is set to become the backbone of India's transportation system over the next five to ten years due to its expanding reach and cost-effective operations. "I firmly believe that the Civil Aviation story in India is extremely strong," he said.
Watch the full session- https://www.youtube.com/watch?v=9gVQLJ-PzG0
