INDIA’S AVIATION SECTOR LANDS IN TROUBLE

It turned out to be a turbulent year for the country’s aviation sector. Jet Airways, which at one point was one of India’s leading private airlines, shut operations in April due to mounting fund crunch, leaving close to 20,000 people jobless. The airline, which also had a strategic partnership with Etihad Airways, initially started cancelling flights, cutting routes, grounding planes and handing pink slips to employees as its financial debt rose. The airline’s last commercial flight operated on April 17, and its grounding gave opportunity to other Indian airlines to expand their fleet. Jet Airways is currently undergoing bankruptcy proceedings.

The year also saw aviation regulator, Director General of Civil Aviation (DGCA), ground Boeing 737 Max 8 aircraft of SpiceJet and the now-defunct Jet Airways’s fleets after two crashes involving Ethiopian Airlines and Malaysia’s Lion Air left over 300 people dead. Safety concerns continued to be a major theme in the aviation sector throughout the year. DGCA directed GoAir and IndiGo to replace P&W engines with modified low pressure turbines (LPTs) in all its Airbus A320Neo aircraft as a safety precaution after the engines were found to be causing high vibrations.

The groundwork for the proposed privatisation of Air India was also laid down in 2019. The government announced privatisation plans for the national carrier after it accumulated debt of over ~58,000 crore. Although the Air India Unions and employees have opposed the proposal, the government is expected to come out with 100% strategic sale in the national carrier in 2020. Towards the end of the year, cancellations and delays hit GoAir operations, with reports saying the airline is facing shortage of crew.