New Delhi: According to the chief of International Air Travel Association (IATA) Tony Tyler, the higher input costs make it harder for Indian companies to get FDI in the sector. "No, I don't think it (allowing foreign airlines to invest in Indian carriers) is a game changer but it is a good thing. But it will not solve the problems of Indian aviation. It certainly is a step in the right direction but it is not the panacea that some believe it is," is what Tyler said during an interview to PTI, when questioned about how he sees the aviation market in India.
With reference to the costs, he was pointing at the high taxes, higher airport costs, congestion and poorly developed navigation services which he feels are the main obstacles to Indian carriers finding foreign based partners to operate in the country. He was questioned in an interview related to the government's decision to allow 49% FDI in aviation in India. He described the cyclic problem as, "But unless conditions in India are improved for the airlines, you are not going to see a flood of foreign carriers coming into the industry.
25/12/12 Daily Bhaskar.com
