With dozens of flights cancellations across the country, industry body ASSOCHAM today called for low taxes on jet fuel, liberal foreign investment norms and a new civil aviation policy which are in tune with current global and domestic realities.
The aviation industry has all ingredients to grow but airlines are facing huge losses as over one-third of operating costs are on account of aviation turbine fuel which is heavily taxed, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
As the key infrastructure sector expands to keep up with booming passenger and cargo traffic, investments of Rs. 1.5 lakh crore will be required in the next 15 years. But major private and government-owned airlines like Air India, Jet Airways, Kingfisher Airlines and SpiceJet have flown into debt turbulence due to elevated fuel costs and fierce price wars.
"Airlines could suffer losses worth about Rs. 15,000 crore in the current financial year with Air India alone likely to account for more than half of it," said ASSOCHAM secretary general D.S. Rawat.
12/11/11 India Infoline
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