Domestic airlines’ 2011-12 losses around Rs.10,000 croreMay 3rd, 2012 - 6:58 pm ICT by IANS
New Delhi, May 3 (IANS) The total operational losses of all domestic airlines, barring the budget carrier IndiGo, in 2011-12 is estimated to be around Rs.10,000 crore, Civil Aviation Minister Ajit Singh said Thursday.
The operational losses of all the airlines for the period for 2008-09, 2009-10 and 2010-11 stood at around Rs.19,000 crore. The losses mounted despite passenger traffic in the country zoomed at 17-to-18 percent in the last few years.
The estimates were calculated on the basis of returns filed by all the domestic airlines with the aviation regulator Directorate General of Civil Aviation (DGCA).
The aviation industry is currently hit by rising jet fuel prices, high sales tax on air turbine fuel (ATF), and an overall dampener in the economic growth, lowing chances of its recovery.
The minister informed the Rajya Sabha that an inter-ministerial working group led by the civil aviation secretary was looking into the sector’s woes.
The working group has recommended rationalisation of value added tax (VAT) on ATF and permission to allow foreign airlines to invest in the domestic carriers and revision of fare structure by airlines to cover their operating cost.
Singh reiterated that there is no proposal to bail out private airlines.
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Tags: air turbine, ajit singh, atf, aviation industry, budget carrier, civil aviation, dampener, dgca, directorate general, domestic airlines, domestic carriers, fare structure, foreign airlines, jet fuel prices, operational losses, passenger traffic, private airlines, rajya sabha, turbine fuel, working group