Did KFA and Air India Failure Teach Govt any Lesson?

Is the Government Taking any Steps to Restore the Aviation Industry?

Putting aside Kingfisher’s case, is the government doing anything to help the industry? There have been two initiatives already announced by the government: one is the decision to allow foreign direct investment in civil aviation, allowing foreign airlines to invest in domestic carriers; and the second is permitting airlines to import aviation fuel directly. Unfortunately, both are still on papers.

For instance, the Civil Aviation has already withdrawn the move partially by ruling that the government will not allow new airlines to be set up with FDI. Only existing ones will be allowed to obtain foreign equity. These moves seem to be more favorable for the bankers who are overexposed to the sector than a plan to put aviation on the right track to achieve success.

And considering the decision to allow direct fuel imports, it is more like a plot to avoid state sales tax, which makes the aviation fuel more costly in India than anywhere else. It would, anyway, get cleared by implementing the goods and services tax (GST).