Ram Mohan Naidu’s task: Pilot the aviation industry amidst operational turbulence

The Telugu Desam Party’s (TDP’s) love for aviation is well known. In 2014, the TDP, as part of the NDA, picked the aviation ministry, and Ashok Gajapathi Raju was at the helm of affairs for four years. Back on the pilot seat to tread the Indian aviation sector is TDP MP Ram Mohan Naidu, the youngest to secure a cabinet berth at 36. 

Naidu, serving his third term as MP from Srikakulam, is scheduled to take charge on June 13, following the swearing-in ceremony of N. Chandrababu Naidu as Andhra Pradesh Chief Minister. 

The aviation ministry has seen frequent changes of guard in the last five years, with Suresh Prabhu, Hardeep Puri, and Jyotiraditya Scindia leading the ministry at various times.

Naidu comes at a time when there has been demand from Middle East air carriers for India to increase flying rights. The aviation industry in the country is split over the issue, with Air India not in favour while Akasa wants it to increase.

Also on Naidu’s table will be the government’s plans to develop India as an international transit hub, keeping in mind that over 50% of Indian passengers continue to use foreign lands as transit hubs, and the majority of that is catered to by airports in Dubai and Singapore. 

The Indian airport modernisation plan is already in the pipeline, putting smaller cities on India’s aviation map through Udan (Ude desh ke aam nagrik). The government is also working on new greenfield airports and upgrading brownfield projects. Under ‘Vision 40’, the plan is to add another 100 airports to the current 148.

Despite positive passenger growth, the aviation industry continues to face losses due to higher operational costs.

According to CAPA, India estimated losses for the year ending March 2025 at between $400 million and $600 million. The industry reported a loss of $300-400 million the previous year.