The Aviation Bill, 2024, marks a pivotal moment for the Indian aviation industry, promising to reshape its operational and regulatory landscape. As one of the industry’s most influential leaders, Jaideep Mirchandani, Group Chairman of Sky One, brings a wealth of expertise and vision to this transformative era. In an exclusive interview with Machine Edge Global, Mirchandani deep dives into the bill’s groundbreaking provisions, from fostering a robust aircraft leasing ecosystem to propelling domestic MRO (Maintenance, Repair, and Overhaul) capabilities. He also discusses how these reforms can position India as a global aviation hub while ensuring sustainable growth and operational excellence.
The Aviation Bill, 2024, has been hailed as a transformative step for the industry. What do you see as its most significant provisions, and how will they impact Indian aviation in the short and long term?
The Indian aviation sector is sure to receive a boost in the form of The Aviation Bill, 2024. Some of the key provisions include amendments in the aircraft leasing system, measures to promote the growth of domestic MROs (Maintenance, Repair, and Overhaul) and regulatory measures to woo foreign investments that are sure to enhance the growth of the sector. In the immediate future, these measures will lower the cost of operations and in the long term it will provide the impetus for growth. The bill envisages to make India an aviation hub, to minimize the reliance on the foreign infrastructure and facilitate the self-recovery of India which is sure to boost the indigenous manufacturing as well as infrastructure around the sector.
India has traditionally lagged behind in the aircraft leasing space. How does this bill create a more favorable environment for leasing companies, and what impact do you anticipate on fleet expansions and airline operations?
The bill deals with the issues in the airplane leasing industry in India, which is a welcome move. By provisions of tax cuts, streamlining the leasing process and creating an authority that will regulate the whole industry we are sure to see more activity in the wet and dry leasing that will in turn help airlines especially during peak times and emergencies. These measures will also help leasing companies to penetrate and be profitable in the Indian market. As a result, the total cost of capital for the airlines will be lower, thus making it possible to increase the size of the fleet and thus more flexibility in operations. Such factors are important in anticipation of the increasing pressure for air transport in the country.
MRO has been a persistent challenge for Indian aviation due to heavy reliance on foreign facilities. How does the new legislation incentivize domestic MRO growth, and what role can Sky One play in this transformation?
The new guidelines promote local MRO by tax incentives, facilitating land requisition for MRO centres as well as promoting joint ventures between Indians and foreigners. The initiatives seek to reduce the reliance on the foreign facilities and save costs to Indian airlines. Sky One is fully ready to take the center stage.
The streamlined regulatory framework is expected to attract foreign investments. What do you think foreign investors look for in a market like India, and how can we ensure sustained interest?
Generally speaking, foreign investors are attracted to the size of the Indian market as well as the scope of growth. It is believed that ensuring stable policies, the existence of conducive laws, supportive infrastructure and dynamic market growth are factors important to investing in economies such as India. The bill seeks to address these considerations by lowering bureaucratic costs and providing benefits for long-term returns. To enhance and sustain the foreign investor’s engagement and interest in India, sound policies need to be in place, top-notch infrastructure needs to be constructed, and the aviation market needs to be well developed.
How can India leverage its geographic location and growing aviation market to compete with established global MRO hubs?
India’s geographical position is definitely in the midst of the best international air routes, the sub continent has always been at the centre of trade routes and the growing middle class with a desire to travel adds to the growth prospects. India already envisions growth in aviation, but the support functions of MRO are yet to be fully tapped and once the infrastructure is in place, India can then leverage the growth potential of its internal airline sector and offer best value for money to airlines seeking good quality services to operate in passenger airlines as well as cargo. In addition, enabling international collaborations as well as access to advanced technologies will allow India to compete with other hubs like Dubai, Singapore in the MRO sector.
As a leader with over two decades in the industry, what role do you envision Sky One playing in realizing the goals set forth by the Aviation Bill?
Sky One intends to dominate in the foremost regions such as lease aircraft and MRO services, that is the core of what we do and we are always growing by supporting the growth of our clients. By extending our scope of business and developing infrastructure, we hope to be in sync with the goal of the Indian government to turn India into an independent but world-class aviation market. We are also aiming at building collaborations and bringing fundamental changes in the industry to improve its benchmarks.
How do you see this bill contributing to India’s goal of becoming the third-largest aviation market globally?
By resolving the pressing issues of leasing, MRO, and external investments, the Aviation Bill gives the airport development the depth it needs to continually grow. This will allow India’s ambition of becoming the third largest aviation market ever more concrete and realistic as the Bill encourages cost efficiency and improves infrastructure. This much Sky One is determined to realize as it continuously innovates and invests strategically while also ensuring operational efficiency and effectiveness.