November 17, 2020
2 mins read

Aviation sector to hit pre Covid levels soon: Minister Puri

Civil Aviation Minister Hardeep Singh Puri has exuded confidence that air travel will reach pre-Covid level by the end of current year or early next year.

Addressing the ‘Deccan Dialogue’ organised by Indian School of Business (ISB) in collaboration with the Ministry of External Affairs, he said for the civil aviation sector to reach the pre-Covid level, people required to continue to maintain safety protocol with self-discipline.

“We opened civil aviation on 25th May, a good two months and two days after we had completely locked down, with 30,000 passengers a day. Two or three days ago, just before Diwali, we carried 225,000 people,” he said.

“At a scale at which we are opening up in a calibrated manner, we have already reached 70 per cent capacity and I have asked my colleagues to look at 80 per cent. I am confident that by 31st December or soon thereafter… means a week or two thereafter, we will be back to pre-Covid levels,” he added.

Puri said he was committed to bring aviation GDP back to India. He was confident that the sector would get a boost in the next few years with the country getting 100 new airports and the fleet size reaching up to 2,000 from around 750 now.

“Our fleet size today should be around 750. I know airlines when they come across a pandemic like this, they try to curtail the size of their fleet orders. But, I can say with seven per cent penetration which means out of every 100 Indians, only seven fly and a 17 per cent rate of growth which we experienced pre-Covid at one time. We will move from 750, not to the 1,200 which everybody says, but to 2,000 aircraft. We will do it pretty quickly,” he said.

He said that there is a massive opportunity for investors across the aviation ecosystem including airports, airlines, ground-handling, maintenance, repair and overhaul.

The minister also revealed that Indian carriers get a mere 17 per cent of the value of traffic between India and the US. “The value of traffic between India and the US is roughly 7 billion dollars annually. How much do Indian carriers get out of that traffic, a mere 17 per cent. It is not as if American carriers are getting the remaining 83 per cent. I am not going to say who is getting it. But I see no reason why Indian flagship carrier and private carriers should not be earning more money flying passengers,” he said while terming this as a distorted business model.

Puri, who is also the Minister of State for Commerce and Industry, hoped that the country would be able to reposition itself as an economic player in the global supply chain before long.

He said even during the times of pandemic, global technology majors like Google, Amazon and Mubadala announced $20 billion investment in India.

He also said that the Aatmanirbhar Bharat concept and process would definitely lead to a stronger India post-Covid.

Previous Story

Finance Commission Presents Report To The PM

Next Story

BPCL Shares Down As major Oil Giants Skip the Race

Latest from Business

RBI Holds Rates, Boosts Outlook

One of the most significant announcements was the upward revision of India’s GDP growth forecast for FY 2025–26—from 6.5% to 6.8% In a move reflecting cautious optimism, the Reserve Bank of India

Nykaa Expands Global Footprint with UK Debut

To commemorate this significant global debut, Nykaa’s leadership hosted an exclusive soiree at the George Club in Mayfair, London Nykaa, India’s leading beauty and lifestyle destination, is set to make a grand

Nothing’s CMF Goes Indian with $100M JV

Company has announced a $100 million joint venture with Indian electronics manufacturer Optiemus Infracom Limited….reports Asian Lite News Smartphone maker Nothing has spun off its budget sub-brand CMF into an independent subsidiary,

Airbnb Boosts India Economy

Among international guests, the largest inbound sources were the United States, United Kingdom, Canada, and Australia Hospitality giant Airbnb made a significant impact on India’s economy in 2024, contributing Rs 113 billion

Rupee, Markets Gain Amid Trade Optimism

Emerging market currencies, including the rupee, have gained support amid softening in the dollar. Reports suggesting that the US economy is on the verge of a recession have contributed to the greenback’s
Go toTop