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Mapping Out Aviation’s Next Moves in an Age of Tariffs, Tensions, and Tech 

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Mapping Out Aviation’s Next Moves in an Age of Tariffs, Tensions, and Tech 
Jaideep Mirchandani, Group Chairman Sky One (1) (1)

Global aviation is navigating tariff disputes, shifting trade routes, and geopolitical uncertainty. We catch up with Jaideep Mirchandani, Group Chairman of Sky One, to discuss how these dynamics are reshaping maintenance, leasing, and cargo operations. From the burden of tariffs on MRO to India’s surging passenger growth and Sky One’s investments in training and sustainability, he maps out the road ahead for resilient aviation.  

How are today’s tariff disputes and shifting trade dynamics reshaping aviation supply chains, particularly in maintenance and leasing? 

Tariffs, which are essentially taxes on imported goods, quickly push up prices. In the aviation aftermarket, where everything from tiny seals to complete engine assemblies comes through a global supply chain, this can lead to a ripple effect of added costs. Now, aviation companies must determine how this added cost can be distributed without affecting their maintenance and operational expenses. For segments like Maintenance, Repair, and Overhaul (MRO), tariffs can prove to be particularly burdensome.  

For instance, a critical engine part that once had a stable price can now swing due to tariff changes. This can create issues for suppliers in the chain due to added costs, making budgeting and forecasting more challenging. MRO providers quoting future maintenance jobs may struggle to predict parts prices, especially when tariffs change suddenly or when they’re forced to choose costlier, tariff-free alternatives. 

In a trade setup affected by tariffs, imported goods, such as aircraft and their parts, become more expensive. This can lead to increased inflation and higher interest rates.  

Given the rising geopolitical tensions, especially in South Asia, how do you envision air routes and cargo operations evolving shortly? 

The International Air Transport Association (IATA), in its outlook for 2025 projects that passenger numbers in Asia-Pacific are likely to grow by 7.9 per cent, the highest rate globally over the forecast period. This growth is primarily driven by stronger economic growth, affordable airfares, and a thriving tourism sector.  

However, it also highlights specific challenges, such as inflation, fluctuating fuel prices, and geopolitical uncertainties, which may slow this growth rate and require greater agility from stakeholders across the aviation ecosystem. Lingering travel restrictions and shifting policies due to geopolitical tensions may hamper cross-border travel, affecting international traffic.  

Similarly, cargo movement may be disrupted as changes in trade policies restrict airspace access, leading to rerouted flights, higher costs and delays.  

With Sky One operating across such a broad spectrum of aviation services, what innovations or shifts are you prioritising to stay ahead in a rapidly evolving industry? 

With growing demand for maintenance services, especially as older aircraft remain in operation longer, Sky One is expanding its MRO facilities. The company is adopting advanced technologies, such as predictive maintenance, and focusing on cost-effective and sustainable practices to improve efficiency and reduce downtime. Backed by a skilled workforce and modern infrastructure, Sky One offers comprehensive MRO services for all types of aircraft, including wide-body and narrow-body, as well as small and large regional and long-haul aircraft. 

Additionally, recognising the global need for trained aviation professionals, particularly pilots, we are expanding our pilot training academies. This includes developing advanced training programmes and facilities. Sky One envisions a seamless integration of human expertise and automation to strengthen safety, efficiency and overall operational capability across its services and fleet. 

What role do you see India playing in the global aviation ecosystem over the next decade, and how is Sky One positioning itself to support that growth? 

India undoubtedly plays a key role in the global aviation ecosystem. According to official data, domestic air passenger traffic reached 22.8 crore in 2024. It crossed the milestone of 5 lakh passengers in a single day last year. International routes are also witnessing strong growth. With annual air traffic expected to exceed 350 million passengers in 2024, India has firmly established itself as one of the world’s largest aviation markets.   

The government has also laid out ambitious plans, with 50 more airports set to be developed over the next five years. Over 120 new destinations are expected to be connected in the next decade. Under the RCS-UDAN scheme, more routes to Tier II and III cities are on the horizon, opening up opportunities for both existing and new carriers. 

The government has also recently approved the Protection of Interest in Aircraft Objects Bill. This brings India’s aircraft leasing and financing framework in line with global norms under the Cape Town Convention, 2001. The Bill is expected to close legal gaps, improve contract enforcement and make repossession more predictable. This is critical for building domestic leasing hubs. There are also plans to scale up domestic MRO facilities and upgrade aviation training academies. These are precisely the areas where Sky One is well-positioned to support India’s growth momentum.