Financial viability of airlines needs to be addressed urgently as it is proving to be a big challenge for the aviation sector in the country, Civil Aviation secretary Pradeep Singh Kharola said in Bengaluru on Saturday. He also urged all state governments to bring down tax on ATF (Aviation Turbine Fuel) to improve the financials of these airlines. Currently, the Central government charges an excise duty of 11 per cent, while the state-level taxes can go as high as 30 per cent.
Fuel expense, of which a big chunk includes state tax, is a major cost factor for airlines. Kharola also briefed upon various factors to help improve the sector faced with multiple challenges. “To cater to the growth in air traffic, we need to improve the airport infrastructure further. At the same time, we need to have more skilled manpower. There is a requirement of around 700-800 pilots in India in a year, but India produces only around 350 pilots a year. This needs to be addressed and steps should be taken to fill the gaps. Though we have also expanded big on the domestic front, we need to do well in long and mid-haul flights; otherwise, foreign airlines will take away the market,” said Kharola.
18/01/20 Abhinav Singh/The Week
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Fuel expense, of which a big chunk includes state tax, is a major cost factor for airlines. Kharola also briefed upon various factors to help improve the sector faced with multiple challenges. “To cater to the growth in air traffic, we need to improve the airport infrastructure further. At the same time, we need to have more skilled manpower. There is a requirement of around 700-800 pilots in India in a year, but India produces only around 350 pilots a year. This needs to be addressed and steps should be taken to fill the gaps. Though we have also expanded big on the domestic front, we need to do well in long and mid-haul flights; otherwise, foreign airlines will take away the market,” said Kharola.
18/01/20 Abhinav Singh/The Week
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