Economic Survey 2020 | Government to help airlines double fleet size by 2024

The government is looking to ease conditions that will allow airlines in India to double their fleet by 2024, according to the Economic Survey 2020.

"To continue with the high growth trajectory, the Government has been providing a congenial environment so that the Indian carriers double their fleet from about 680 aircraft (number of aircraft endorsed on Scheduled Airlines) at the close of November 2019 to over 1,200 by FY 2023-24," it said.

Explaining the roadmap, the Survey added: "This would be achieved by easing leasing and financing from Indian shores in conformance with the provisions of the Cape Town Convention and Protocol on Aircraft Equipment, efficient use of air traffic rights, encouraging domestic and international passenger and goods transfers, and rationalising the tax regime."

If done, the initiative will be a big boost for the aviation sector, which has been looking to expand its capacity to meet the rising demand. The domestic aviation, despite slowing down in 2019, continues to be among the fastest growing in the world. India is the third largest market globally, at present. Most of the airlines, including IndiGo, SpiceJet and GoAir, have been aggressive on expanding their fleets.