High taxes bane for aviation industry: Jet Airways

High taxes bane for aviation industry: Jet Airways

New Delhi: Over capacity in the Indian aviation market, high airport charges and sales tax on aviation turbine fuel (ATF) are responsible for the poor state of the airline industry, according to Jet Airways chief.

“The current crisis in the aviation industry has nothing to do with the global slowdown...capacities (deployed by domestic carriers) exceeded the demand and that started irrational pricing in the last almost three years and (airlines) started selling below cost

“And then these charges--navigation, landing and (taxes on) aviation fuel has compounded the problem of the aviation world," Jet Airways chairman Naresh Goyal said in an interview to CNBC TV18 news channel.

He also said if the airlines get jet fuel at international prices, the industry will become “sustainable and viable".

The price of jet fuel in India is about 70% more than international prices. ATF is subjected to sales rax by states, which average around 26%.

The combined loss of all the airlines in the country stood at Rs10,000 crore for the last fiscal.