Airline chiefs call for policies to tackle rising fuel prices

Chennai: The chiefs of two of India’s largest air-carriers on Friday stressed the need for more industry-friendly government policies to address the problems of rising Aviation Turbine Fuel costs and congestion in India’s airports.
High sales tax rates on ATF in most States and an increasing mismatch between the growth of airlines and infrastructure on the ground were the biggest obstacles to the industry’s growth, V. Thulasidas, Chairman and Managing Director, Air India, and Naresh Goyal, Chairman, Jet Airways, said.
In 2006-07, scheduled air-carriers in India incurred combined losses of around Rs. 2,000 crore. Mr. Goyal said that with rising fuel prices, he expects air-carriers to suffer even greater losses this financial year.
In some States, ATF prices are double the global rates.
Mr. Goyal urged the authorities to improve infrastructure to deal with increased congestion in airports around the country, particularly in New Delhi and Mumbai.
02/02/08 Ananth Krishnan/The Hindu

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Categories: Indian Aviation- In General Feb 2008