The Challenges Facing the Aviation Industry in India

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A huge number of players in the aviation industry have experienced challenges in 2019. Boeing is probably the worst hit this year due to the scandal of the 737 MAX. Indian aviation has also experienced a tough year. It is a proper time to reflect at the happenings of the last 12 months as 2019 comes to an end.
This year has seen big stories in the aviation industry, both good and bad.

Several of the big stories originate from India. The aviation industry in India is rapidly expanding, and it is expected to go through some challenges, especially when growing at a considerable rate.

The collapse of Jet Airways.
The collapse of Jet Airways was undoubtedly been the most significant event in the aviation industry in India this year.. Jet Airways was not a small airline by any means. Until January, it was India’s second-largest airline ; it managed a fleet of 124 airplanes at the period of its last flight. The story regarding Jet Airways’ demise is complicated, but ultimately, the airline collapsed because it failed to secure investment to redeem itself from going bankrupt. Jet Airways had acquired some suspicious loans at many points throughout the 27 years it was in operation. This questionable financial history came into focus when it came to obtaining last-ditch loans.

In its daily operations, Jet Airways was having challenges with the severe competition in the aviation industry in India and also the increased fuel cost. On the bright side, the end of Jet Airways is an advantage for its rivals, especially the Spice Jet. Spice jet has been able to cover the gap that Jet Airways has left behind, recording a 788% boom in net profit in 2019’s June quarter.

Air India privatization.
Another headline is regarding India’s flag bearer, Air India, which is currently experiencing challenges. The airline now has a debt reaching $11 billion, which is forcing the government to consider whether or not to keep it. It is worth noting that the airline has not returned any profit for the last 12 years of operation, which makes selling it a bit tricky. The Indian government publicized its intention to sell its entire stake in Air India on December 12th. This move has been termed as strategic disinvestment.

IndiGo’s A320neo troubles.
One of India’s major airlines, IndiGo, has been facing significant difficulties with its Airbus A320neos fleet.
India’s Civil Aviation Authority ordered IndiGo to have the engines of all Airbus A320neos replaced; the planes are 96 in total. Airbus A320neos engine failures have been a significant course of concern in IndiGo. Peculiarly, the problems with the engines were occurring with any other Airbus A320neos from other airlines.

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