India%u2019s%20aviation%20sector%20has%20been%20among%20the%20worst%20hit%20segments%20of%20the%20economy%20during%20the%20COVID-19%20pandemic.%20So%20vast%20and%20unprecedented%20has%20been%20the%20fallout%20of%20severe%20air%20travel%20restrictions%20that%20all%20industry%20stakeholders%20%u2013%20airlines%2C%20airports%2C%20ground%20handling%20agencies%20and%20allied%20vendors%20%u2013%20continue%20to%20totter%20months%20after%20restrictions%20have%20been%20eased.%20With%20the%20demise%20of%20Jet%20Airways%20last%20year%2C%20the%20country%20was%20anyway%20left%20with%20just%20six%20scheduled%20airlines%20%u2013%20IndiGo%2C%20SpiceJet%2C%20GoAir%2C%20Air%20India%2C%20Vistara%20and%20Airasia%20India.%20Now%2C%20some%20of%20the%20remaining%20airlines%20are%20wobbling%20due%20to%20the%20immense%20post-COVID%20financial%20strain.

In%20such%20a%20situation%2C%20irresponsible%20statements%20from%20Civil%20Aviation%20Minister%20Hardeep%20Puri%20hardly%20help.%20In%20fact%2C%20they%20hurt%20the%20morale%20of%20an%20industry%20already%20struggling%20badly%20and%20which%2C%20despite%20repeated%20pleas%2C%20has%20not%20received%20any%20succour%20from%20the%20government.%20The%20latest%20gaffe%20by%20minister%20Puri%20has%20been%20his%20statement%20on%20the%20imminent%20closure%20of%20AirAsia%20India.

According%20to%20reports%2C%20the%20minister%20told%20media%20persons%20in%20Chandigarh%20on%20Saturday%2C%20%u201CAirAsia%20ki%20dukaan%20band%20ho%20rahi%20hai%20%u2026%20matlab%20unki%20parent%20company%20mein%20problems%20hain.%20%28Air%20Asia%20is%20downing%20its%20shutters%20%u2026%20there%20are%20problems%20in%20the%20parent%20company%29.%20They%20may%20be%20in%20financial%20stress%20%u2026%20That%20may%20be%20individual%20specific.%20But%20Chandigarh%20ki%20connectivity%20ki%20koi%20problem%20nahi%20hai.%u201D

AirAsia%20India%20is%20a%2051%3A49%20joint%20venture%20between%20Tata%20Sons%20and%20AirAsia%20BhD.%20There%20has%20been%20some%20speculation%20about%20the%20Malaysian%20partner%u2019s%20inability%20to%20bring%20in%20funds%20and%20about%20discussions%20between%20the%20two%20promoters%20about%20Tatas%20buying%20out%20AirAsia%20BhD.%20But%20nothing%20has%20been%20confirmed%20by%20either%20partner%20and%20there%20is%20certainly%20no%20truth%20till%20now%20to%20the%20rumour%20that%20AirAsia%20India%20will%20shut%20shop.

%3Cstrong%3EAlso%20Read%20%7C%20%3C/strong%3E%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/revenues-of-indian-airlines-fell-by-857-in-april-june-period-due-to-covid-19-puri%22%3E%3Cstrong%3ERevenues%20of%20Indian%20airlines%20fell%20by%2085.7%25%20in%20April-June%20period%20due%20to%20COVID-19%3A%20Hardeep%20Puri%3C/strong%3E%3C/a%3E

In%20this%20context%2C%20the%20minister%20charged%20with%20looking%20after%20and%20handholding%20a%20sector%20appears%20to%20be%20busy%20instead%20in%20writing%20the%20epitaph%20of%20airlines.%20This%20isn%u2019t%20right.%20Not%20only%20should%20Puri%20have%20kept%20knowledge%20of%20any%20such%20impending%20action%20by%20the%20airline%u2019s%20promoters%20to%20himself%20%u2013%20if%20indeed%20such%20a%20thing%20is%20happening%20-%20he%20should%20have%20also%20refrained%20from%20creating%20panic.%20Closure%20of%20any%20airline%2C%20large%20or%20small%2C%20means%20thousands%20of%20direct%20and%20indirect%20jobs%20are%20lost%20and%20allied%20businesses%20also%20take%20a%20hit.%20In%20any%20case%2C%20a%20change%20of%20ownership%20%28if%20that%20is%20what%20ultimately%20happens%29%20is%20no%20closure.

Global%20aviation%20consultancy%20CAPA%20%28Centre%20for%20Asia%20Pacific%20Aviation%29%20has%20termed%20the%20minister%u2019s%20comments%20as%20%u201Cunfortunate%u201D.

%u201CThe%20entire%20industry%20is%20under%20stress%20and%20singling%20out%20one%20carrier%20is%20demotivating%20for%20its%20staff%20and%20other%20stakeholders%u201D.

But%20this%20isn%u2019t%20the%20first%20time%20minister%20Puri%20has%20referred%20to%20impending%20closure%20of%20an%20airline%20at%20an%20inopportune%20time.%20Last%20year%2C%20he%20had%20said%20in%20Parliament%20that%20Air%20India%20will%20have%20to%20shut%20down%20unless%20it%20was%20sold%20first.%20The%20government%20is%20the%20sole%20owner%20of%20Air%20India%20and%20by%20then%2C%20had%20already%20once%20failed%20to%20get%20the%20airline%20off%20its%20hands%20when%20the%20maiden%20disinvestment%20attempt%20in%202018%20had%20bombed.%20Puri%20was%20referring%20to%20the%20sale%20process%20in%20the%20second%20attempt%20with%20easier%20selloff%20conditions%20when%20he%20spoke%20of%20imminent%20closure.

The%20minister%u2019s%20statement%20created%20panic%20for%20AI%u2019s%20vendors%2C%20suppliers%2C%20lessors%20and%20other%20creditors.%20Employee%20unions%20subsequently%20wrote%20to%20the%20minister%2C%20questioning%20his%20intent%20in%20speaking%20about%20imminent%20closure%20instead%20of%20taking%20steps%20tor%20revive%20the%20airline%3B%20vendors%20complained%20of%20massive%20delays%20in%20payment%20as%20the%20airline%20top%20brass%20scrambled%20to%20read%20between%20the%20lines%20of%20the%20minister%u2019s%20utterances.

%3Cstrong%3EAlso%20Read%20%7C%20%3C/strong%3E%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/patna-airport-can-handle-8-million-passengers-a-year-after-new-terminal-aviation-minister-hardeep-singh-puri%22%3E%3Cstrong%3EPatna%20airport%20can%20handle%208%20million%20passengers%20a%20year%20after%20new%20terminal%3A%20Hardeep%20Puri%3C/strong%3E%3C/a%3E

Meanwhile%2C%20one%20year%20later%2C%20Air%20India%20is%20still%20fully%20owned%20by%20the%20government%20and%20despite%20meagre%20financial%20support%2C%20continues%20to%20operate.%20The%20government%20itself%20has%20been%20repeatedly%20pushing%20forward%20the%20deadline%20to%20exit%20the%20airline.%20And%20now%2C%20there%20is%20renewed%20uncertainty%20as%20the%20pandemic%20and%20resultant%20financial%20strain%20on%20likely%20buyers%20could%20further%20jeopardise%20the%20sale%20process.

Experts%20suggest%20that%20perhaps%20the%20minister%20would%20be%20of%20more%20help%20if%20he%20were%20to%20instead%20look%20for%20ways%20to%20help%20distressed%20airlines%2C%20whose%20situation%20can%20be%20gauged%20by%20the%20government%u2019s%20own%20data%2C%20which%20Puri%20presented%20through%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22http%3A//164.100.24.220/loksabhaquestions/annex/174/AU872.pdf%22%3Ewritten%20replies%20in%20Parliament%3C/a%3E%20last%20month%3A

1%29%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Domestic%20traffic%20was%20down%2080%25%20to%20120%2C84%2C952%20%28585%2C30%2C038%29%20during%20March-July%3B%20International%20traffic%20down%20to%2011%2C55%2C590%20%2893%2C45%2C469%29.%20By%20September%2C%20domestic%20traffic%20is%20still%20down%20but%20by%2072%25%20year-on-year.

2%29%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Indian%20carriers%u2019%20revenue%20fell%20more%20than%20eight%20times%20to%20Rs%203%2C651%20crore%20%28Rs%2025%2C517%20crore%29%20in%20Q1%20%28April-June%29

3%29%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Revenue%20of%20airport%20operators%20has%20reduced%20by%20nearly%2084%25%20to%20just%20Rs%20894%20crore%20%28Rs%205%2C745%20crore%29%20in%20Q1.%20The%20Airports%20Authority%20of%20India%20is%20likely%20to%20post%20a%20rare%20loss%20in%20the%20current%20fiscal%20due%20to%20the%20Covid19%20fallout%20and%20has%20had%20to%20take%20working%20capital%20loans

4%29%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Nearly%2018%2C000%20jobs%20across%20airlines%2C%20airports%2C%20cargo%20operators%20and%20ground%20handling%20agencies%20have%20vanished%20between%20March%20and%20July%20this%20year.

Faced%20with%20such%20intense%20headwinds%2C%20the%20civil%20aviation%20sector%20has%20been%20knocking%20on%20the%20government%u2019s%20door%20for%20lowering%20taxes%20on%20aviation%20turbine%20fuel%20%28ATF%29%2C%20deferment%20of%20taxes%20and%20other%20dues%20for%20six%20months%2C%20easier%20lending%20norms%20for%20the%20sector%20and%20an%20interest%20free%20line%20of%20credit%20of%20at%20least%201.5%20billion%20dollars.

%3Cstrong%3EAlso%20Read%20%7C%20%3C/strong%3E%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/lufthansa-cancels-germany-flights-till-october-20-after-indias-rejects-its-scheduled-flights%22%3E%3Cstrong%3ELufthansa%20cancels%20Germany%20flights%20till%20October%2020%20after%20India%20rejects%20its%20scheduled%20flights%3C/strong%3E%3C/a%3E

What%20has%20the%20government%20offered%20till%20now%3F%20Route%20rationalisation%20which%20means%20better%20airspace%20management%20to%20save%20costs%20for%20airlines%3B%20encouraged%20private%20investments%20in%20existing%20and%20new%20airports%3B%20engaging%20with%20foreign%20aircraft%20lessors%20and%20financiers%20to%20ensure%20no%20premature%20withdrawals%20of%20leased%20aircraft%20from%20Indian%20carriers%3B%20lowered%20GST%20on%20Maintenance%2C%20Repair%20and%20Overhaul%20%28MRO%29%20activities%20to%205%25.%20However%2C%20there%u2019s%20no%20word%20on%20whether%20the%20airlines%u2019%20demand%20of%20a%20%241.5%20billion%20interest%20free%20line%20of%20credit%20is%20materialising%20or%20if%20the%20long-drawn%20issue%20of%20lowering%20taxes%20on%20jet%20fuel%20is%20any%20closer%20to%20resolution.

Kapil%20Kaul%2C%20South%20Asia%20Director%20at%20global%20aviation%20consultancy%20CAPA%20said%20earlier%20that%20due%20to%20a%20steep%20fall%20in%20domestic%20as%20well%20as%20international%20traffic%2C%20Indian%20airlines%20could%20be%20saddled%20with%20200-250%20surplus%20aircraft%20and%20a%20third%20of%20the%20workforce%20in%20the%20sector%20may%20be%20wiped%20out%20this%20fiscal.%20CAPA%20has%20also%20projected%20funding%20requirement%20for%20airlines%20alone%20at%20%243-3.5%20billion.

The%20government%20has%20made%20the%20right%20noises%20on%20its%20willingness%20to%20come%20to%20the%20rescue.%20But%20while%20the%20sector%20waits%20for%20that%20to%20happen%2C%20doomsday%20predictions%20are%20best%20avoided.

%26nbsp%3B

%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23HardeepSinghPuri%22%20data-user-id%3D%22LtDK0wu3KUCl%22%20href%3D%22/topic/hardeep-singh-puri%22%3E%23HardeepSinghPuri%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23CivilAviation%22%20data-user-id%3D%22yN9sZljKpy0I%22%20href%3D%22/topic/civil-aviation%22%3E%23CivilAviation%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Minister%22%20data-user-id%3D%22IFAjXBu33RCk%22%20href%3D%22/topic/minister%22%3E%23Minister%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Airlines%22%20data-user-id%3D%22zRD3lEqc9MYe%22%20href%3D%22/topic/airlines%22%3E%23Airlines%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Aviation%22%20data-user-id%3D%22qQFtkunbkhqq%22%20href%3D%22/topic/aviation%22%3E%23Aviation%3C/a%3E%26nbsp%3B