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Indian aviation outlook very good; infra, taxation issues worrisome: IATA

Clocking high double-digit growth for more than two years, India's domestic aviation market is one of the fastest growing in the world

Press Trust of India  |  Geneva 

Airport, AAI, Indian airports, Aviation

The outlook for the fastest growing market is "very good" but and could be detrimental for its growth, according to global airlines' grouping chief Alexandre de Juniac.

Clocking high double-digit growth for more than two years, India's domestic aviation market is one of the fastest growing in the world.

Even as he emphasised that the country's aviation market is "promising", the IATA's Director General and CEO said there are concerns with respect to certain aspects.

"outlook is very good because it is the fastest growing market... (but) we have some concerns about the Indian market. Infrastructure, taxes which are too high (and) not totally clear about the new GST," de Juniac told PTI in an interview here.

According to him, there are a lot of and they could be "detrimental to the development of aviation".

With respect to the Goods and Services Tax (GST), de Juniac said it is a better system even though the devil is in the details.

Exclusion of airport fee and charges levied on ticket from the transaction value for purpose are among the issues being flagged by the

On whether the risks in the market could possibly outweigh its growth potential, de Juniac replied in the negative even as he asserted that the government should take the right decisions in terms of costs, charges and

"We think that probably the most worrisome item is If you don't have the capacity or the costs are high, it is an enormous obstacle for the development of aviation which cannot be overcome. Infrastructure is the key issue," he noted.

First Published: Sun, December 10 2017. 14:11 IST
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