Ajay Singh, Chairman of Spicejet and the man who came up with the slogan ‘Abki Bar Modi Sarkar’, today blasted the government’s approach towards the aviation sector.
Speaking at the 12th International Conference-cum-Awards on Civil Aviation & Cargo by FICCI, Singh was unsparing in his criticism of government’s taxation policy towards his industry.
“There is no country in the world which taxes aviation fuel like we do, we pay 35 per cent tax on average on aviation fuel, this definitely needs to be addressed urgently,” Singh said, amid one of the worst slowdowns ever to affect India’s aviation industry.
Private airlines in India are estimated to have lost around Rs 40,000 cr in the year ended March, compared to a profit of Rs 21,589 cr in the previous year and a profit of Rs 17,195 cr in the year before that.
Jet Airways, one of the pioneering private airlines in the country, folded in April after mounting losses eroded its net worth and it could no longer find more banks willing to lend more money.
Singh’s SpiceJet has been one of the biggest beneficiaries of Jet Airway’s tumble: The airline has launched over a 100 new flights since Jet started wobbling in April. Still, said Singh, we must introspect about the reason for the debacle.
“We need to celebrate the fact that despite the failure of Jet Airways, the speed at which India recovered and got capacity back and got fares back to a normal level, is a great testament to the way India and government work together to make that happen…At the same time, I think, this is a time for sombre reflection, the failure of Jet Airways and the condition of Air India, I think must give us pause,” he said.
20/07/19 Ultra News
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Speaking at the 12th International Conference-cum-Awards on Civil Aviation & Cargo by FICCI, Singh was unsparing in his criticism of government’s taxation policy towards his industry.
“There is no country in the world which taxes aviation fuel like we do, we pay 35 per cent tax on average on aviation fuel, this definitely needs to be addressed urgently,” Singh said, amid one of the worst slowdowns ever to affect India’s aviation industry.
Private airlines in India are estimated to have lost around Rs 40,000 cr in the year ended March, compared to a profit of Rs 21,589 cr in the previous year and a profit of Rs 17,195 cr in the year before that.
Jet Airways, one of the pioneering private airlines in the country, folded in April after mounting losses eroded its net worth and it could no longer find more banks willing to lend more money.
Singh’s SpiceJet has been one of the biggest beneficiaries of Jet Airway’s tumble: The airline has launched over a 100 new flights since Jet started wobbling in April. Still, said Singh, we must introspect about the reason for the debacle.
“We need to celebrate the fact that despite the failure of Jet Airways, the speed at which India recovered and got capacity back and got fares back to a normal level, is a great testament to the way India and government work together to make that happen…At the same time, I think, this is a time for sombre reflection, the failure of Jet Airways and the condition of Air India, I think must give us pause,” he said.
20/07/19 Ultra News
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