New Delhi: Worried that airlines are making losses despite increase in air traffic, government on Tuesday pinned hopes of growth on the next year when some new airlines are proposped to be launched.
Civil Aviation Minister Ashok Gajapathi Raju said the aviation industry was "seriously affected" by high operational costs including cost of aviation turbine fuel, service tax and other charges, shortages of maintenance facilities, high foreign exchange rate and competition from foreign airlines. There is a high customs duty on import of private aircrafts and helicopters also, he said.
Noting that aviation was acknowledged as a growth engine which has a force multiplier effect, he said as per global estimates, for every USD 100 worth of input, there is USD 325 worth of output generated. For every 100 jobs created in the aviation industry, there are 610 jobs created in other industries, he said.
30/12/14 PTI/Daily News & Analysis
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Civil Aviation Minister Ashok Gajapathi Raju said the aviation industry was "seriously affected" by high operational costs including cost of aviation turbine fuel, service tax and other charges, shortages of maintenance facilities, high foreign exchange rate and competition from foreign airlines. There is a high customs duty on import of private aircrafts and helicopters also, he said.
Noting that aviation was acknowledged as a growth engine which has a force multiplier effect, he said as per global estimates, for every USD 100 worth of input, there is USD 325 worth of output generated. For every 100 jobs created in the aviation industry, there are 610 jobs created in other industries, he said.
30/12/14 PTI/Daily News & Analysis
