Budget 2024: What India’s aviation sector needs from Nirmala Sitharaman for long-haul flights

Budget Expectations: The aviation sector is calling for a range of measures in the 2024 budget to overcome current challenges and support growth. It focuses on improving regional connectivity, expanding airport infrastructure and supporting domestic maintenance, repair and overhaul (MRO) and aircraft leasing.Here are the most important expectations of the industry:

Better regional connectivity:
Strengthen the regional connectivity scheme (UDAN) to improve access to underserved and remote regions, increasing connectivity and tourism. “The Indian aviation industry expects continued focus on increasing regional connectivity through UDAN and expansion of airport infrastructure to support growth,” said Kinjal Shah, Group Co-Head, Corporate Ratings, ICRA.

Incentives for the MRO sector:
Provide financial incentives in the domestic market, reducing dependence on foreign plants and supporting the development of local industry. Aircraft Leasing Promotion:
Creating policy and developing infrastructure to promote the growth of the aircraft leasing sector in India, supporting fleet management and expansion.

Promotion of sustainable aviation practices:

Support the implementation of environmentally friendly technologies, sustainable practices to align with global environmental goals and reduce the industry’s carbon footprint. “The immediate focus should be on ensuring the sustainability of the aviation sector by addressing current issues such as airline closures and high airfares. Practical solutions should be prioritized over ambitious, high-risk projects,” said Mark D Martin, CEO of Martin Consulting. Pawan Hans Renewal:
Modernisation of Pawan Hans with new fleet to ensure it continues to efficiently service critical offshore oil and gas operations.

Development of cargo facilities:
Invest in the development of cargo-focused airports, facilities that improve logistics and supply chain efficiency.

Monetization of Tier 2 Airports:
Set a clear timeline for monetisation of Tier 2 airports to fully utilise their potential, benefiting various stakeholders. “The budget should include increased spending on building new airports, developing cargo-focused facilities and setting a timeline for monetisation of Tier 2 airports to benefit stakeholders and enhance regional aviation,” said Jagannarayan Padmanabhan, senior director, Crisil.

Modernization of air traffic management:
Allocate funds to modernize air traffic management systems to increase efficiency, safety and reduce operational delays.

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