Budget carrier SpiceJet on Wednesday said throughput charge is the biggest reform in Indian aviation in recent times.
Speaking to CNBC-TV18 at the World Economic Forum in Davos 2020, Ajay Singh, chairman and managing director, said, "The larger macro story is extremely strong. The market will start to grow again. The current dip is a temporary blip caused by little imbalance in the capacity. Once the capacity imbalance issues are resolved, you will see growth take off again."
Singh expects double-digit growth in domestic aviation by the end of the calendar year, "A lot of the growth is happening in the international market, so airlines like SpiceJet, IndiGo, GoAir and Vistara are increasingly adding to the foreign destinations that they go to. However, this is not being measured. If you take all of it into consideration, the growth is still pretty much in the high single digits."
According to Singh, the Indian economy should see an improvement in the next few quarters as the government is taking several steps to improve it. However, more needs to be done.
"One big issue that all of us are facing is that there seems to be a complete deep freeze as far as credit is concerned. Banks have become extremely risk-averse and they lend only to the safest possible projects. So, we need to get banks to start lending again. We need to remove the element of fear that bankers especially public sector bankers seem to have when lending money," he added.SpiceJet chairman said, "We also have to find a way in which NBFCs start to lend again, that is extremely important. It is very important that the government starts to invest more. My view is they need to let the fiscal deficit slip but make sure that the money that they get from that is being invested in real infrastructure and especially in rural infrastructure. I think long term assets need to get created with that money."