The Many Challenges Facing Civil Aviation in India (Robert S
India Law News A quarterly newsletter of the India Committee VOLUME 4, ISSUE 3, FALL ISSUE 2013 THE MANY CHALLENGES FACING CIVIL CIVIL AVIATION IN INDIA—THE VIEW FROM AVIATION IN INDIA 30,000 FEET By Robert S. Metzger By VivekLall ndia has experienced extraordinary growth in ndian aviation has great underlying potential. civil aviation over the past decade and is However, the market continues to under-perform forecast to be on of the world’s largest aviation due to structural issues and the business models markets in just a few years. To achieve (and afford) the of almost all the major carriers are under stress. promise of civil aviation, India faces challenges posed by national and state policies, law, regulation and The fiscal and cost environment in which the civil practice. Crucial questionsare presented to policy aviation sector is operating has turned particularly makers, regulators, business leaders and to lawyers hostile at present as a result of stubbornly high fuel who advise them. prices compounded by a sharp depreciation of the Rupee and a punitive ad valorem sales tax. Civil aviation in India may be taken as a study in contrasts. Despite extraordinary growth in traffic, most There is a need to take a holistic view of the sector of India’s airlines are in a precarious condition. and address concerns of all the stakeholders and all aspects of the civil aviation business. continued on page 8 continued on page 6 SAVE THE DATE (FEBRUARY 13-15, 2014 – NEW DELHI, INDIA) Come join your colleagues from the United States and India, ABA Section of International Law Leadership, ABA Leadership, and Leadership from Major Indian Bar Associations, government officials, and prominent Indian business personalities at a jointly sponsored conference of the American Bar Association Section of International Law India Committee, Society of Indian Law Firms, and the Bar Association of India, as well as the Indian Services Export Promotion Council to be held in New Delhi, India.
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