Union Cabinet minister Jyotiraditya Scindia, who took charge of the civil aviation ministry on Friday following the reshuffle in Prime Minister Narendra Modi’s council of ministers on Wednesday, faces an uphill task of reviving one of the worst-hit sectors by the Covid 19 pandemic.
Scindia, whose father late Madhavrao Scindia served as the civil aviation minister in the 1990s, takes over when the Indian aviation sector is estimated to have suffered losses worth around $ 8 billion dollars in two years as a direct impact of the pandemic, according to aviation consultancy and research firm CAPA. Airlines have been seeking government stimulus since last year to tide over the losses.
The aviation industry has also demanded lowering of the Aviation Turbine Fuel (ATF) taxation for years. It has sought the inclusion of ATF under the Goods and Services Tax (GST) regime as tax uniformity would lead to cost reduction.
Airlines in India are estimated to post a consolidated loss of $4.1 billion this fiscal–similar to what they are estimated to have incurred in 2020-21