Geneva: High taxes on fuel and rising operating costs were acting as a constraint to the growth of the aviation industry in India, the International Air Transport Association (IATA) said on Wednesday.
"High fuel taxes and operating costs, coupled with infrastructure constraints, remains a challenge" for the Indian aviation industry, IATA director general and CEO Tony Tyler said here.
He was replying to a question on the problems facing the Indian aviation sector.
Mr Tyler, however, projected a healthy outlook for the global airline industry and said IATA expected 25 per cent growth in combined net profit to $25 billion in 2015 as against $19.9 in the current year on the back of falling crude prices.
"For 2015, we see airlines making a collective $25 billion net profit. That's up from $19 billion this year,
$10.6 billion in 2013 and $6.1 billion in 2012," Mr Tyler said at the IATA Global Media Day here.
However, half of the $25 billion profit was expected to come from the North American carriers while the European airlines, were likely to contribute only $4 billion in the collective profits.
"I would like to impress upon you that while $25 billion may sound like a lot of money, it is distributed over a very fragmented industry with hundreds of players. Some airlines are making sustainable returns and others re struggling," Mr Tyler said.
11/12/14 PTI/NDTV
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"High fuel taxes and operating costs, coupled with infrastructure constraints, remains a challenge" for the Indian aviation industry, IATA director general and CEO Tony Tyler said here.
He was replying to a question on the problems facing the Indian aviation sector.
Mr Tyler, however, projected a healthy outlook for the global airline industry and said IATA expected 25 per cent growth in combined net profit to $25 billion in 2015 as against $19.9 in the current year on the back of falling crude prices.
"For 2015, we see airlines making a collective $25 billion net profit. That's up from $19 billion this year,
$10.6 billion in 2013 and $6.1 billion in 2012," Mr Tyler said at the IATA Global Media Day here.
However, half of the $25 billion profit was expected to come from the North American carriers while the European airlines, were likely to contribute only $4 billion in the collective profits.
"I would like to impress upon you that while $25 billion may sound like a lot of money, it is distributed over a very fragmented industry with hundreds of players. Some airlines are making sustainable returns and others re struggling," Mr Tyler said.
11/12/14 PTI/NDTV
