Following a cabinet reshuffle this week, India officially has a new civil aviation minister. Jyotiraditya Scindia will take over the ministry from Hardeep Singh Puri after his two-year tenure. Scindia’s appointment comes as Indian aviation faces its most challenging period yet, with carriers struggling with finances and passenger traffic.
History
On July 7th, Jyotiraditya Scindia was officially sworn in as India’s 39th Civil Aviation Minister and fourth one under Prime Minister Narendra Modi. Scindia had been a lifetime member of the Congress party before joining the ruling BJP last year. He is a Member of Parliament in the Rajya Sabha from Madhya Pradesh, and this is his second central government ministerial post.
Jyotiraditya Scindia comes from a long political and royal lineage. His father, Madhavrao Scindia, was also an MP and served as India’s 25th Civil Aviation Minister 30 years ago, in the turbulent early 1990s. This time, Jyotiraditya will once again have to tackle the biggest challenge facing the industry.
Harvard and Stanford-educated with a degree in Economics and an MBA, Scindia brings strong credentials to his new post. However, his biggest test comes now, as he looks to help the aviation industry navigate its biggest crisis ever: COVID-19.
Recovery
2021 comes with two key priorities for the Indian government: ensure airlines survive the pandemic and sell Air India. India has not provided any direct bailouts to airlines, opting to control capacity, fares, and international connectivity instead. This means easing capacity limits, or reinstating them, will be Scindia’s biggest tool to help airlines survive.
Aviation has only recently begun its recovery from the deadly second wave of COVID-19. Passenger numbers are on the rise, and airlines are looking to grow their services once again. Scindia’s next major choice will be to either ease capacity limit, so carriers have the chance to boost revenues, or maintain them at the cost of passenger options and other airlines’ growth.
The second key task will be to privatize Air India. The process began in early 2020, but has been slowed by the pandemic. Currently, the Tata Group and SpiceJet CEO Ajay Singh are the final two bidders for the airline. The government hopes to complete the sale by this calendar year, removing billions in debt from its books.
Scindia will be critical to ensuring the bidding is completed in time and the transfer from government to a private entity occurs smoothly. While several attempts to private Air India have failed in the past, the Modi government is desperate to avoid the same outcome.
Test
For Jyotiraditya Scindia, Civil Aviation is a political test. India was the world’s fastest-growing aviation market in the world before the pandemic and the third-largest one too. Returning the domestic and international growth levels will be crucial for an economic recovery and helping airlines find their feet. For now, keep your eyes out for what India’s newest Civil Aviation Minister plans for the beleaguered industry.
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