Heavy taxation and other burdensome regulations could stifle India’s aviation sector, the chief of the global airline industry’s trade body said yesterday.
Speaking in the capital New Delhi, Tony Tyler, the director general and chief executive of the International Air Travel Association (Iata) said that India could potentially become the third-largest aviation market in the world by 2029. This is when the annual number of travellers to, from, and within India is forecast to hit the 280 million mark.
Although aviation contributes US$23 billion to India’s GDP and supports about 7 million jobs, there are challenges that could prevent the sector from reaching its full potential, Mr Tyler said.
“While demand growth is robust and some airlines are generating profit, sector-wide losses for India are still expected to exceed $1bn this year,” he said. “Onerous regulation and processes, debilitating taxes and expensive infrastructure are holding back the industry’s ability to deliver greater economic benefits.”
14/07/15 Shereen El Gazzar/The National
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Speaking in the capital New Delhi, Tony Tyler, the director general and chief executive of the International Air Travel Association (Iata) said that India could potentially become the third-largest aviation market in the world by 2029. This is when the annual number of travellers to, from, and within India is forecast to hit the 280 million mark.
Although aviation contributes US$23 billion to India’s GDP and supports about 7 million jobs, there are challenges that could prevent the sector from reaching its full potential, Mr Tyler said.
“While demand growth is robust and some airlines are generating profit, sector-wide losses for India are still expected to exceed $1bn this year,” he said. “Onerous regulation and processes, debilitating taxes and expensive infrastructure are holding back the industry’s ability to deliver greater economic benefits.”
14/07/15 Shereen El Gazzar/The National
