The civil aviation ministry is considering a slew of fiscal incentives for stakeholders across the country’s fledging aviation industry to reduce operating costs for airlines, rationalise air fares and realise its objective of enabling the common man to fly at least once a year. The concessions are part of the draft aviation policy that is awaiting approval from the Ministry of Finance and the Prime Minister’s Office (PMO). “The ministry is looking at tax waivers to incentivise stakeholders across the value chain. These concessions would be provided for a specified period of time. The growth in the sector would be evaluated thereafter and the tax breaks realigned. The objective is to rationalise operating costs and thereby reduce air fares which would enable every middle class family to fly at least once every year,” said a government official who did not wish to be identified.
Indian airlines have piled up cumulative losses of up to $10.6 billion in the seven years running up to 2014. The ensuing years have seen apart from Kingfisher Airlines, Air Deccan, Deccan360, MDLR, IndusAir and Paramount Airways wrap up operations. No-frills carrier SpiceJet too was set to down shutters in December last year prior to original promoter Ajay Singh taking over the financially strapped airline from media baron Kalanithi Maran.
The operating environment continues to be challenging. High taxes on aviation turbine fuel, or ATF, have made its price in India among the highest in the world. Fuel comprises around 50 per cent of an airline’s operating expenses.
10/08/15 Indian Express
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Indian airlines have piled up cumulative losses of up to $10.6 billion in the seven years running up to 2014. The ensuing years have seen apart from Kingfisher Airlines, Air Deccan, Deccan360, MDLR, IndusAir and Paramount Airways wrap up operations. No-frills carrier SpiceJet too was set to down shutters in December last year prior to original promoter Ajay Singh taking over the financially strapped airline from media baron Kalanithi Maran.
The operating environment continues to be challenging. High taxes on aviation turbine fuel, or ATF, have made its price in India among the highest in the world. Fuel comprises around 50 per cent of an airline’s operating expenses.
10/08/15 Indian Express
