Modi Sarkar@2: We shall be the third largest aviation market by 2022, says P Ashok Gajapathi Raju

Sunday ET catches up with P Ashok Gajapathi Raju on his views on two years of the Modi government.

On the achievements
For aviation, it has been a good two years. Aircraft growth has been 12% and the passenger traffic is up more than 20% year on year, the highest in the world. In terms of new airports we have Chandigarh, Tirupati, Khajuraho and Durgapur.

On room for growth in aviation sector
We see room for growth in cargo. We also expect the maintenance, repair and operations activity to come back to the country. If we are able to do that we will retain the $700 million worth of business.

On the fall in crude prices
The fall in crude prices is seen throughout the world but the kind of growth that India has is not witnessed anywhere else. On the other side is the high VAT on ATF. The Delhi government, for instance, charges 25%. Penal taxes such as 26-28% are too high. I am okay with 5% or less.

On Air India making an operational profit
It is a beautiful airline. Although the (profit) figures are nominal it is heartening to see that AI is not burdening the tax payer. There was a financial reconstruction and turnaround plan for AI committed by the previous government. If AI continues in this way, it will reach its goal earlier than envisaged.

On remote connectivity versus economic viability
You can’t choose one and wish away the other. For remote connectivity, initially we have to trigger growth through some kind of financial support. Demand will take over once people get used to flying. Connectivity to remote places will be our priority area.

On the 120 emergency landings made by airlines in three years
Of the 120, 102 were due to medical reasons. Of the rest which were due to technical reasons, Air India accounted only for four.

On the targets
We need to boost the number of passengers flying in India. All this will depend on the health of the economy. Broadly, by 2022, we plan to become the third largest aviation market globally.

On need to bring back Vijay Mallya
Who doesn’t he owe money? The government should not do anything to save Mallya and the law should take its course. But how he managed his business is mind-boggling.