January: According to the prediction made by the Aviation consultant Centre for Asia Pacific Aviation, the demand recovery especially for the International traffic would remain uncertain even in 2021. International traffic is only expected to recover 35-40% of the financial year 2020 levels, however, domestic traffic in the financial year 2021-22 is expected to reach 70-80% of the financial year 2020 levels.
CAPA also reported that with the help of lower fairs, a very limited discretionary travel demand can be stimulated. However, some air carriers opposed the lower pricing restrictions. The aviation consultant also said that the ministry leaders will require to be more professional and independent in order to serve the aviation industry of today. CAPA said while quoting to aviation regulator Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security.
The regulatory body also claimed that even the outbound travel would continue to get impacted by border restrictions and inefficient passenger confidence.
In a report, CAPA quoted, “The need to modernise these agencies can no longer be ignored as the entire industry will soon be market-driven. Hiving off and corporatising the air navigation services division of the Airports Authority of India (AAI), in line with global best practice, is another overdue reform that should now be pursued. The AAI requires a new long-term business model given that the largest airports will have been privatised.”
