India must slash aviation taxes and costs, reform its air traffic management and regulatory frameworks and build dedicated low-cost airport facilities, whilst avoiding “complacency” and arrogance” if it is to kick start growth of its fragile aviation sector, IndiGo's CEO has warned.
India’s airlines are barely scratching the surface of demand and is at least 15 years behind its neighbour China and must implement reforms to narrow the gap Aditya Ghosh, told delegates at the Routes Asia Strategy Summit in Mumbai this week.
Slashing aviation taxes, building dedicated low-cost airports and terminals, make better use of bilateral rights to encourage hub operations and price deregulation would all boost growth, Ghosh said, while urging both the public and private sector to take the initiative.
“In the last year, the overall capacity has gone down, increasing the demand–supply gap where demand continues to outstrip supply in the medium to long term. Once corrected, this would mean lower fares and growth in air passengers,” argued Ghosh.
19/03/13 Routes news
