The 2nd India Civil Aviation Week was a platform for an interactive flagship event called “CEO Round Table on Aviation”. Organized in conjunction with NDTV Profit and Ernst & Young Pvt. Ltd., the forum brought together the leading industry players and policy makers to deliberate on critical issues facing the aviation sector. Mr Ashok Chawla, Hon’ble Secretary, Ministry of Civil Aviation, Government of India inaugurated and participated in the healthy discussions on the theme “Civil Aviation Industry in India: Trends & Challenges”. The panel discussion also included eminent names from the aviation industry such as Mr. BS Shantharaju, CEO, Delhi International Airport Ltd., Mr. Kapil Kaul, CEO, Centre for Asia-Pacific Aviation, Mr. Manav Singh, Managing Director & CEO, Club One Air, Mr. Raj Shekhar Agrawal, Director, Bengal Aerotropolis Projects Ltd., Mr. Elyes M’Rad, Regional Vice President (South Asia & India), SITA, Mr. Thomas Donahue, Vice President, Distribution Sector (Asia Pacific), IBM Global Services and Mr. Kuljit Singh, Partner (Transaction Advisory Services), Ernst & Young Pvt. Ltd.

Jointly moderated by Mr. Arijit Banerjee, Special Correspondent, NDTV Profit and Mr. Kapil Arora, Partner (Risk Advisory Services), Ernst & Young Pvt. Ltd, ”The CEO Round Table” was received successfully by one and all.

The discussion focused on the challenges faced by the Indian aviation industry including airline profitability particularly with respect to high fuel costs and taxes, the shortage of trained pilots in the face of a huge spurt in demand and the rising costs of construction.

Mr. Kapil Kaul voiced his concern that despite the mergers and consolidations taking place in the airline sector, this has not reflected positively on the balance sheets of these airlines.

One of the solutions offered was to rationalize state taxes on Aviation Turbine Fuel (ATF), which currently vary from 4-38% across the states. Shri Chawla affirmed that the Ministry of Civil Aviation has urged the Indian states to reduce state taxes on ATF and also cited the examples of Maharashtra, Andhra Pradesh and Kerala that have reduced taxes on ATF to a uniform rate of 4% without reflecting any adverse effect on its revenue..

In the field of airport development, an interesting perspective given out for subsidizing losses on aeronautical revenue was to enhance non-aeronautical revenue through developing the hospitality and Internet services, establishing maintenance repair & overhaul (MRO) services, developing duty-free shops and Housing facilities. However, this is a possibility in only the new and upcoming airports across the country.

In smaller airports, where construction costs are lower, the allotment of more real estate around airports can be utilized for developing non-aeronautical revenue. The Bengal Aerotropolis Projects Ltd. is one such innovative venture where a whole city is being developed around an airport said.

The discussion brought to light many innovative solutions for tackling the challenges hindering the growth of the Aviation sector in India. The success of the CEO Round Table has ignited interest amongst all the key players of aviation who have urged the organizers to hold it as a regular feature in the future events.