The coronavirus pandemic has caused probably the most significant impact to the aviation sector. With the world going into a lockdown and airlines being grounded internationally, the sector has come to a standstill.
Issues

• As a result of the travel bans and flight cancellations in response to the outbreak, we are seeing a severe drop in passenger traffic as many countries are decreasing air connectivity
• Airport revenue generation is directly linked to traffic levels. The flight bans and cancellations are leading to less flights, hence less aeronautical revenue coming in. 
• Unlike other players in the aviation industry, when traffic demand falls, airports have limited ways of reducing costs. 
• The cost of operating airport infrastructure remains the same, and airports can’t close down or relocate terminals and runways.
• The other aspect to consider is non-aeronautical revenues, which are necessary, as aeronautical revenue alone cannot cover all airport operations and capital cost.

Challenges

• High Aviation Turbine Fuel (ATF) Prices: Fuel price remains to be the biggest concern faced by the airline industry in the modern world. The high costs have led to many airlines imposing fuel surcharges on customers.
• Excess Capacity: High Airport (aeronautical) Charges levied by Airport Authority of India are higher. These charges payable at the International airports are higher than those payable at the airports designated as Domestic airports. 
• Severe competition: There is a cut throat competition faced by the top airline due to ticket pricing. Established Airlines are threatened by low cost carriers, which are eating up their market share. In order to consolidate their market share, top premium airlines were forced to reduce their ticket fares to around 15- 20 per cent.
• Hugh Debt Burden
• Poor Infrastructure
• Regional Connectivity

Suggestion

• Restrictions on domestic and international flights will be lifted when the government is confident that spread of coronavirus has been controlled, and poses no danger to Indians.
• Opening of the commercia airlines for domestic purpose is most important and International at second stage.
• Start creating Quarantine Corridor where proper test are provided as well as making mass compulsory.
• Start operating the operator in terms of Clash flow.
• Focus on Cargo with limit operator.
• Support the freight forward industries so that operating cost does not lead to high commodities prices.

Government’s Policy to strengthen Aviation Sector

• Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the government in 2016 aims to make flying affordable by connecting unserved airports across the country.
• NABH Nirman, announced in the 2018-19 budget, aims to expand airport capacity by more than five times to handle a billion trips in a year.
• National Civil Aviation Policy (NCAP) was framed to boost regional air connectivity, establish an integrated ecosystem to promote tourism and generate employment.

Road Ahead

• The revival of economy and revival of infrastructure is essential and easiest ways of controlled way of operating because entire country is linked up.
• Mergers, liquidation and consolidations seem to be necessary. Improving energy efficiency of engines, developing infrastructure, increasing regional connectivity will definitely have a positive impact on the industry.