Date : 03/11/2023

Relevance: GS Paper 3 – Indian Economy, Science and Technology

Keywords: MRO, AME, DGCA, SEZ

Context-

India's ambitious vision of becoming 'Atmanirbhar' (self-reliant) in critical and emerging technologies by 2030, establishing itself as a global drone hub, and achieving developed nation status by 2047 hinges significantly on the robustness of its aviation sector. A pivotal aspect of achieving these goals is reforming India's policies related to the certification of aviation technicians. This article explores the challenges faced by the Indian aviation industry, compares the existing regulations in India, the United States, and Europe, and proposes strategic measures to enhance the competitiveness of India's civil aviation, drone manufacturing, and Maintenance, Repair, and Overhaul (MRO) sectors.

How big is India’s Aviation Industry?

As of March 2023, India's domestic carriers facilitated travel for a staggering 13 million passengers. The Civil Aviation Ministry projects a remarkable increase, estimating over 140 million passengers in FY2024 alone. Looking ahead, India aims to handle a colossal 1.3 billion passengers annually over the next two decades. Currently boasting 148 operational airports, India stands proudly as the world's third-largest domestic market concerning seat capacity.

In this bustling aviation landscape, IndiGo, holding a dominant 56.8% market share, leads the domestic market. Following closely are Vistara, capturing 8.9% of the market, and Air India, commanding 8.8% market share. The numbers underscore the magnitude of India's aviation sector and its significant role in the global market.

Is the Financial Viability of the Indian Aviation Sector Sustainable?

Intense Competition: Despite being recognized as the world's fastest-growing aviation sector, airlines in the country have faced significant challenges in the fiercely competitive aviation industry.

Pandemic-Induced Losses: In the fiscal year 2020-2021, airlines incurred substantial losses amounting to ₹15,000 crore due to the impact of the pandemic. In the previous fiscal year 2019-2020, IndiGo was the sole profitable airline, while others, particularly the state-run Air India, reported losses, with Air India's losses reaching 4,600 crore.

Financial Struggles: Seventeen airlines, both domestic and regional, have ceased operations due to financial hardships, primarily caused by liquidity issues and low ticket prices.

Unequal Market Share: The merger of four carriers, including Air India and Vistara, by the Tatas has resulted in consolidated market dominance. Air India and Indigo, after the merger, are set to capture 75-80% of the market share, leaving only about 20% for other players like SpiceJet and the newly established Akasa.

Certification of Aviation Technicians: An Overview:

Certification of aviation technicians involves intricate processes governed by regulatory bodies such as the Federal Aviation Administration (FAA) in the USA, the European Aviation Safety Agency (EASA) in Europe, and the Directorate General of Civil Aviation (DGCA) in India. The certification encompasses Aircraft Maintenance Engineers (AME) licensing, certification of technicians involved in manufacturing, and Maintenance, Repair, and Overhaul (MRO) of aviation components.

Opportunities Abound in India's Aviation Sector

1. Rapid Fleet Expansion: Indian carriers are on track to expand their fleet to 1,100 aircraft by 2027, indicating substantial growth prospects.
2. Surging MRO Demand: The demand for Maintenance, Repair, and Overhaul (MRO) services is soaring, fueled by consistent double-digit growth in the aviation sector.
3. Strategic Regional Development: The Airports Authority of India (AAI) aims to transform Guwahati into an inter-regional hub, boosting aviation development in the North-Eastern states.
4. Innovative Revenue Models: Indian airports are adopting the Special Economic Zone (SEZ) Aerotropolis model, focusing on revenue generation from retail, advertising, parking, security services, and equipment.
5. PPP Development Initiatives: Public Private Partnership (PPP) airports in Delhi, Hyderabad, and Bengaluru are investing INR 30,000 Crores in developmental projects by 2025, enhancing infrastructure and services.
6. Air Sports Revolution: The Government of India envisions making the country one of the top air sports nations by 2030, fostering a safe, affordable, accessible, enjoyable, and sustainable air sports ecosystem.
7. Jewar's Greenfield Airport: The upcoming Noida International Greenfield Airport in Jewar, Uttar Pradesh, is poised to drive comprehensive industrial development, boost employment opportunities, and promote manufacturing and exports in the region.

Challenges in the Current EIA Framework

Underutilization of Defense Aviation Technicians: India possesses a pool of skilled technicians within defense and public sector entities, which remains underutilized due to regulatory gaps and differences in training standards.

Skilling Gaps: Discrepancies in training methodologies between defense and civil aviation sectors lead to skill gaps, hindering seamless integration of defense technicians into the civil aviation workforce.

Certification Discrepancies: Differences in certification requirements between India, the USA, and Europe create disparities, impacting the Indian industry's global competitiveness.

Drone Technician Certification: Lack of specific regulations for certifying drone technicians hampers the growth of India's emerging drone industry.

Proposed Solutions:

Collaborative Policy Formulation: DGCA, in collaboration with defense agencies, scientific research organizations, and industry stakeholders, should formulate comprehensive policies for certifying aviation technicians, ensuring alignment with global standards.

Joint Accreditation Mechanism: Establish a joint body comprising regulatory authorities, defense forces, and industry representatives to standardize training syllabi, bridge training gaps, and create accreditation mechanisms for defense aviation technicians.

Review of Educational Requirements: Align educational prerequisites, such as the need for Physics, Chemistry, and Mathematics (PCM), and engineering degrees, with global standards, ensuring a balance between industry needs and educational qualifications.

Transparent Certification Process: Simplify the certification process, streamline examinations, and make study materials readily available online, enhancing transparency and accessibility for aspiring technicians.

Drone Technician Certification Framework: Develop a tailored certification framework for drone technicians, balancing safety requirements with industry growth, thereby facilitating India's journey to becoming a global drone hub.

International Collaboration: Explore collaborations with international regulatory bodies like EASA and FAA for mutual recognition of certifications, enhancing the acceptability of Indian aviation and drone industry products globally.

Conclusion

Achieving self-reliance in critical technologies, establishing global dominance in drone manufacturing, and becoming a developed nation by 2047 necessitate proactive policy reforms in India's aviation sector. By addressing certification challenges, aligning standards with global benchmarks, and leveraging the expertise of defense technicians, India can create a competitive, skilled workforce, propelling its aviation industry toward unprecedented growth. Streamlining certification processes, fostering collaboration, and embracing innovation will pave the way for India's ascent in the global aviation arena, ensuring a prosperous and self-reliant future.

Source - IDSA