Challenges Facing the Sector

General and Business Aviation has emerged as an essential part of national transportation systems around the world. It is especially critical for connectivity and for businesses that need to move efficiently in growing economies like India. Yet, it has failed to garner due diligence within the eyes of Government and regulators who see it as a luxury segment, not realizing the ways it actually contributes to the economy, enables connectivity, industrial works, medical evacuations, tourism etc. Industry suffers a major perception problem leading to apathy that has resulted major challenges, some of which have been highlighted below:

Infrastructure

Insufficient infrastructure for Business & General Aviation has been a major deterrent for the sector in India. The planning and roadmap for aviation infrastructure so far has not taken note of GA/BA requirements. It is of outmost importance that the needs of the industry are incorporated into the planning process for existing and new airports that will come in future.

High Taxation & Charges

The tax regime prevailing in India has had severe effects on growth trajectory of its Business & General Aviation Industry over the last 7 years. The Authorities, however, need to realize that   Aircraft purchase is a capital investment and its operations lead to creation of more jobs, while providing efficient and flexible connectivity to remote and under-developed area, thus ensuring inclusive and faster economic growth. Furthermore, indiscriminate and unregulated charges being levied in terms of airport usage, ground handling, hangarage and parking have made operations expensive across the country.

Policy

The current operational environment lacks a compatible regulatory framework to allow proportionate treatment for aircraft operators based on size, complexity and type of operations.