CHENNAI: The chiefs of two of India's largest air-carriers on Friday stressed the need for more industry-friendly government policies to address the problems of rising Aviation Turbine Fuel costs and congestion in India's airports.
High sales tax rates on ATF in most States and an increasing mismatch between the growth of airlines and infrastructure on the ground were the biggest obstacles to the industry's growth, V. Thulasidas, Chairman and Managing Director, Air India, and Naresh Goyal, Chairman, Jet Airways, said.
"Frankly, the ATF problem is killing us," said Mr. Thulasidas. "Every cost that an airline faces is going up, and fares are going down. This can only mean one thing ¨C big losses for airlines."
In 2006-07, scheduled air-carriers in India incurred combined losses of around Rs. 2,000 crore. Mr. Goyal said that with rising fuel prices, he expects air-carriers to suffer even greater losses this financial year.
In some States, ATF prices are double the global rates. "ATF is more expensive in India than anywhere else in the world," Mr. Thulasidas said. Costs have become so high that airlines like Air India are now purchasing up to two-thirds of their fuel requirements abroad.
Mr. Goyal urged the authorities to improve infrastructure to deal with increased congestion in airports around the country, particularly in New Delhi and Mumbai. He also suggested that policymakers consider bringing in trained air-traffic controllers from abroad for a limited period to improve traffic management.
"There is a lack of trained controllers¡ ATC equipment needs to be modernised as well," he said.
Jet Airways and Air India were in the process of investing heavily to improve their infrastructural capacities to maintain their quickly growing fleets. Jet Airways plans to set up a Maintenance Repair and Overhaul (MRO) unit and is considering Chennai and Bangalore as possible locations.
Air India will shortly sign a Memorandum of Understanding with Boeing to set up a joint-venture pilot training facility. Mr. Thulasidas also said that it will launch a non-stop New Delhi-New York flight on February 8, but with delays in Boeing 787 orders it is not expected to further expand its international operations this year. |
