Aviation Insider

State restrictions aggravate challenges of domestic aviation sector

With India allowing domestic flights to operate, stringent measures taken by state governments like mandatory quarantine and need for Covid-negative certification are acting as deterrents for demand to take off. 

India’s aviation industry is expected to post losses of $3-3.6 billion this quarter due to Covid-19-related disruptions, with airlines sharing the bulk of the hit, aviation consultancy firm CAPA India said in a recent report.

Though India resumed domestic flights on May 25, more than 600 flights were cancelled on the day owing to airlines operational issues and state implemented curbs. 

“It was a good move for the airlines to start operation but almost all flights had only one-way ticket passengers. The entire process looks like people who were stranded are taking their journey back home. The central government should have decided one uniform policy of quarantine instead of enabling the states to specify their own quarantine and self-isolation rules for arriving passengers,” said Kanneganti Vijay Mohan, Managing Director, Holiday World & President, Tours and Travels Association of Andhra Pradesh.

Indian states and union territories including Karnataka, Punjab, Chhattisgarh, Assam and Jammu and Kashmir have mandated either institutional or home quarantine for passengers flying to cities in their respective states.

“State governments having their own quarantine regulations will impact the growth of passenger traffic. Gradually, airlines will be forced to cancel their flights in the wake of declining demand. It is high time for the central government to step in to discuss the revival of the sector and to create a stimulus for the tourism industry. I think nothing will move forward until the quarantine regulations are completely removed,” added Mohan.

“The cancellation of so many flights on the first day and some on the second day is a problematic area. This shatters the confidence of the flyers who are travelling against all odds,” said Arun Anand, Managing Director, Midtown Travels.

The state government of Goa, one of the Indian states with few Covid-19 cases has stated that it would need a Covid-19 negative certificate or the travellers have to undergo a test on entering the state. However, some states like Maharashtra have decided passengers travelling in the state for less than one week will be exempted from isolation upon sharing details of their return journey.

“State governments have to manage their own coronavirus cases and to maintain safety they are within their right to impose quarantine. However, some states deciding to exempt travellers coming for less than a week from quarantine is a positive signal,” said Anand.

On the other hand, global airline lobbying body the International Air Transport Association (IATA) said it found it disappointing that the Indian government’s Rs 20 lakh crore relief package for industries hit by the Covid-19 virus contained nothing for the country’s aviation industry.

“It is particularly disappointing that the package of economic relief unveiled earlier this month contained nothing for airlines in the form of direct financial relief. Compare that to the $123 billion in government financial aid that has been announced around the world, including $26 billion in the Asia Pacific region,” said Alexandre De Juniac, Director General, IATA in a webinar organised by CAPA-Centre for Aviation.

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