Air fair: Aviation honchos sure India will fly smooth

New Delhi: India’s aviation honchos came together at the Hindustan Times Leadership Summit against the backdrop of deepening recession and the worst crisis facing the sector.

Praful Patel Civil Aviation Minister admitted that the biggest hurdle for the aviation industry was lack of infrastructure. The Indian aviation sector has reported a loss of Rs 8,000 cr in the recent past.

“The biggest reason why Indian aviation did not grow all these years is wrong taxation because even today we fail to acknowledge that air transport is a mode of public transport. The biggest reason is that not creating the right infrastructure,” he said.

“Tell me one Indian airport where you can take a connecting flight. Airport infrastructure has never been designed,” he said.

However, Patel expressed hope and said Indian carriers were very competitive and promised India would have six world-class aviation hubs soon.

He also insisted efforts must be made to bring down air fares. “I will urge the entire aviation industry whenever some help is given then it should reflect in some form like lower airfares,” he said.

Mallya: My beer’s doing good

Speaking at the Summit, Kingfishers and UB Group Chairman Dr Vijay Mallya said that fares can only be reduced if ATF is listed under the declared good category.

“We can only reduce fares if ATF is put under the declared goods category that way there will be a uniform four per cent tax on it and so we will be able to reduce fares without worrying about external causes,” he said.

He also said despite the economic downturn, consumption of his beer continue to grow robustly.

Goyal: Tough time, temporary setback

Also speaking at the summit Jet Airways chairman Naresh Goyal said the aviation industry at present was going through a bad phase and the phase will continue for the next one or two years.

"The airline industry is clearly very sick for the next year or two in my opinion we will see airlines coming under much more pressure."

Goyal also said that decison makers have to make important choices now to make India a market leader.

And though he is convinced that the present tough time is a temporary setback, he is hopeful that the industry will bounce back with government support.