Tuesday, September 04, 2018

Government policies imposing 'excessive costs' on airlines in India: IATA chief

Government policies are imposing "excessive costs" on airlines in India and infrastructure constraints are limiting growth, IATA chief Alexandre de Junica said Tuesday even as he projected the country's aviation sector to register 500 million passengers by 2037.
Flagging various concerns about the Indian aviation sector, which is one of the fastest growing in the world, he said levying the Goods and Services Tax (GST) on international air tickets violates ICAO principles.
The head of the IATA, a grouping of more than 280 airlines, also said the steep rise in fuel prices and fall in the rupee value are putting "acute pressure on profits" of airlines. Air India, Jet Airways and Vistara are also IATA members.
In India, infrastructure constraints limit growth while government policies impose excessive costs, he added.
"If we can comprehensively fix jet fuel and infrastructure issues, India will be primed to take a giant step forward in the world of aviation," he said at a conference here.
04/09/18 PTI/Economic Times

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