Turmoil in Indian Aviation Sector:Challenges Ahead

Abstract

Civil aviation sector in India has been witnessing a dull phase during the last few years. Initial trouble started with the opening up of the sector to private players. Protected public sector airlines started feeling the heat of competition from low cost private carriers. Rising fuel prices, lack of adequate infrastructure, shortage of skilled stuff, unfavourable fiscal policy and global recession resulted in declining profitability and added to the woes of the Indian aviation industry. The sector, however, holds immense potential as the rising middle class population with reasonably high affordability is going to comprise the largest customer segment in the days to come. Cost and management accountants have a crucial role to play in translating this potential into reality.