SpiceJet CMD Ajay Singh made a strong pitch to the government Tuesday to give domestic carriers a "level-playing field" with international carriers who enjoy tax benefits and consequently become able to cushion the impact of high jet fuel prices. He said domestic carriers needed to raise fares, which was "incredibly" important to remain financially healthy and sustain the growth trajectory in the Indian aviation market.
"What's happening today is quite scary, oil prices are high for every airline in the world but in India we are compounding the problem by also taxing the oil... Our oil is actually costing the airlines in India for domestic travel 30 per cent more than those costing the airline around the world," Singh said at a plenary session of the International Aviation Summit here.
In contrast, airlines around the world do not have to pay taxes on oil and therefore are emerging stronger and this is a problem for the Indian carriers.
"If India truly aspires to be a global aviation power, we need to get a level-playing field. Give us the same cost structure, same cost base that is enjoyed by airlines across the world and then let us compete with the foreign carriers," he said at the event which was attended by Civil Aviation Minister Suresh Prabhu, his deputy Jayant Sinha and many Aviation Ministry officials.
04/09/18 PTI/Economic Times
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"What's happening today is quite scary, oil prices are high for every airline in the world but in India we are compounding the problem by also taxing the oil... Our oil is actually costing the airlines in India for domestic travel 30 per cent more than those costing the airline around the world," Singh said at a plenary session of the International Aviation Summit here.
In contrast, airlines around the world do not have to pay taxes on oil and therefore are emerging stronger and this is a problem for the Indian carriers.
"If India truly aspires to be a global aviation power, we need to get a level-playing field. Give us the same cost structure, same cost base that is enjoyed by airlines across the world and then let us compete with the foreign carriers," he said at the event which was attended by Civil Aviation Minister Suresh Prabhu, his deputy Jayant Sinha and many Aviation Ministry officials.
04/09/18 PTI/Economic Times
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