New Delhi: An industry report on Tuesday said that if certain policy measures are undertaken in a time-bound manner, the domestic aviation industry has the potential to grow from its current level of $23-25 billion to $250 billion by 2025.
The Tata Vistara-Capa report has identified measures like removing the 5/20 clause, better regulatory framework like simplifying route-disbursement-guidelines, reducing fuel taxes, and investment in airport infrastructure, as necessary to give a fillip to the aviation industry. Such measures would lead the domestic air traffic to increase three-fold and contribute up to 5% of the country’s GDP. The industry would have the potential to generate employment for more than 2.3 million people.
Aviation turbine fuel (ATF) currently comprises around 50% of the cost of carriers. “Cost of ATF in India is highest in the world. It is 35% of a carrier’s operating cost, but because of taxation it becomes 50% more expensive than most other countries,” said Mukund Rajan, director of board at Tata SIA Airlines, which operates Vistara.
07/10/15 Financial Express
To Read the News in full at Source, Click the Headline
The Tata Vistara-Capa report has identified measures like removing the 5/20 clause, better regulatory framework like simplifying route-disbursement-guidelines, reducing fuel taxes, and investment in airport infrastructure, as necessary to give a fillip to the aviation industry. Such measures would lead the domestic air traffic to increase three-fold and contribute up to 5% of the country’s GDP. The industry would have the potential to generate employment for more than 2.3 million people.
Aviation turbine fuel (ATF) currently comprises around 50% of the cost of carriers. “Cost of ATF in India is highest in the world. It is 35% of a carrier’s operating cost, but because of taxation it becomes 50% more expensive than most other countries,” said Mukund Rajan, director of board at Tata SIA Airlines, which operates Vistara.
07/10/15 Financial Express
