New Delhi: Projecting a cumulative loss of USD 1.5 billion for Indian carriers this year, IATA has asked the government to act expeditiously to ward off the crisis in the sector by removing excise duty and sales tax on aviation turbine fuel. Observing that global crisis was hitting India hard, International Air Transport Association chief Giovanni Bisignani said the bottomline of Indian aviation industry was bleeding as it would post the largest losses outside the US (of) potentially USD 1.5 billion this year. Describing the situation as volatile , he asked the government to take speedy steps to remove excise duty and sales tax on Aviation Turbine Fuel, which accounts for half of the total operational cost for some airlines. It is wake up call for Ministry of Finance, he said, adding over 25 airlines across the globe had gone bust in the past seven months and indicated that such a situation could arise in India if effective steps were not taken fast. At an interactive session organised by the CII, Bisignani welcomed the government setting up a high level committee to study the problems of the industry but said he was concerned about speed in decision making. In India, decision making process is slow and the situation does not wait for the recommendations of a committee because aviation is a fast growing sector, he said, adding a very wise decision taken too late does not make any sense.
Source : PTI