India has set its eyes on the domestic regional and remote area connectivity to expand the sector. An estimated ₹74,000 crore will be pumped in to develop the airport sector in the next few years. Of this, the private sector is expected to contribute ₹56,700 crore. “Our air traffic density is lowest among the peers at 72 as against 282 in China, 231 in Brazil, 1,225 in Malaysia and 2,896 in the US. This shows the untapped market potential,” Civil Aviation Minister Mr Ajit Singh said.
Concessions
inaugurating the fourth edition of the India Aviation show here on Wednesday, he said the Regional and Remote Area Air Connectivity Policy offered several financial and other concessions to airlines operating flights on these routes. The Airports Authority of India has begun work on building 50 low-cost airports, giving a fillip to low-cost carriers. In order to address the unfolding demand for skilled workforce, the Government is in the process of setting up a Civil Aviation University.
Cut taxes
The Federation of Indian Chamber of Commerce and Industry (FICCI) and aviation industry have said the sector is bleeding due to the tough tax regime. The chamber has called for reduction in taxes to help industry grow. FICCI President Mr Siddharth Birla cited huge tax on aviation turbine fuel, which ranged from 4 to 30 per cent. “This makes the cost 60 per cent higher when you compare with other countries,” he said. “The country needs several low-cost airports in certain cities. If you can cater to those who travel by first class in trains, it will give huge business,” he said. Andhra Pradesh Governor ESL Mr Narasimhan said the State Government would set up a Civil Aviation Board to oversee the development of new airports in tier-II cities.
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