Modi government’s triad of reforms for aviation decoded – what they mean for airlines & the sector

The triad of reforms announced by the government to lift the domestic aviation sector are good long-term auguries, and will help it get back on its growth trajectory once the Covid-19 pandemic eases. In the decade through fiscal 2019, India was among the fastest-growing aviation markets with a compound annual growth rate of more than 11%. However, fiscal 2020 saw passenger traffic slump under the impact of a weak economy and grounding of Jet Airways, and the pandemic taking hold towards the tail end.

With Covid-19 afflictions darting up since the start of the current fiscal, revenue loss for the aviation industry was expected to be Rs 24,000–25,000 crore, assuming a complete shutout of business in the first quarter.