The Indian aviation sector is facing significant financial stress, prompting the Union Aviation Ministry to start a comprehensive study on the structural challenges affecting airlines.

The ministry has invited suggestions from airlines and stakeholders on reforms related to policy, operations, regulatory affairs, contracts, and procurement.Historically, most participants in the aviation ecosystem made profits, except the airlines themselves.

Officials emphasise the need for measures such as bringing aviation turbine fuel under GST at 5%, standardising GST on air tickets, reviewing airport charges, and regulating monopoly routes.

Further reforms are also suggested for import duties on spare parts and the capacity of airports to accommodate the growing fleet of carriers like Air India, IndiGo, and Akasa.Training infrastructure for pilots and maintenance personnel needs scaling to match expanding aircraft orders.The ongoing West Asia crisis has seen India provide temporary support to airlines, including capping jet fuel prices and reducing airport fees.Industry experts believe that systemic reforms are essential to make Indian airlines resilient to cyclical crises and unforeseen events.

Without these reforms, only a few carriers such as IndiGo and Tata-backed Air India show financial strength, while emerging airlines struggle to sustain operations.