July 31, 2009
"Member airlines felt that without meaningful relief being provided by the government and its agencies, they may not be able to continue with the operations," -- Anil Baijal, secretary general FIA.
India's private airline operators said on Friday they would suspend domestic operations on August 18 to protest the lack of government relief for the ailing industry.
High operating costs and a fall in demand in the global economic slowdown have hit India's aviation industry. It is expected to lose USD$2.1 billion in 2009/10 from an average annual growth of more than 25 percent in the past few years, when the economy was booming.
Private airlines carried about 83 percent of India's 11 million air passengers in the June quarter.
The Federation of Indian Airlines (FIA), which includes five of India's biggest private airlines, said in a statement that private operators also needed a helping hand from the government.
"The critical situation was discussed threadbare today and the member airlines felt that without meaningful relief being provided by the government and its agencies, they may not be able to continue with the operations," Anil Baijal, secretary general of the FIA, told reporters.
Private airlines have said they want the government to reduce taxes on aviation fuel to a uniform 4 percent from the current average rate of 26 percent across various states.
Jet fuel makes up more than 40 percent of the operating costs of an airline.
They also want the government to cut a number of other levies, including airport development and landing and navigational charges.
The government said it would ask the private operators not to strike.
"We will talk to the civil aviation minister," said Finance Minister Pranab Mukherjee.
The strike will hit an industry that has been at the heart of India's economic modernisation, with millions of middle-class Indians taking to the skies and carriers employing thousands of young men and women.
The downturn has also hit national airline Air India, which has asked the government for an expensive bailout.
(Reuters)
"Member airlines felt that without meaningful relief being provided by the government and its agencies, they may not be able to continue with the operations," -- Anil Baijal, secretary general FIA.
India's private airline operators said on Friday they would suspend domestic operations on August 18 to protest the lack of government relief for the ailing industry.
High operating costs and a fall in demand in the global economic slowdown have hit India's aviation industry. It is expected to lose USD$2.1 billion in 2009/10 from an average annual growth of more than 25 percent in the past few years, when the economy was booming.
Private airlines carried about 83 percent of India's 11 million air passengers in the June quarter.
The Federation of Indian Airlines (FIA), which includes five of India's biggest private airlines, said in a statement that private operators also needed a helping hand from the government.
"The critical situation was discussed threadbare today and the member airlines felt that without meaningful relief being provided by the government and its agencies, they may not be able to continue with the operations," Anil Baijal, secretary general of the FIA, told reporters.
Private airlines have said they want the government to reduce taxes on aviation fuel to a uniform 4 percent from the current average rate of 26 percent across various states.
Jet fuel makes up more than 40 percent of the operating costs of an airline.
They also want the government to cut a number of other levies, including airport development and landing and navigational charges.
The government said it would ask the private operators not to strike.
"We will talk to the civil aviation minister," said Finance Minister Pranab Mukherjee.
The strike will hit an industry that has been at the heart of India's economic modernisation, with millions of middle-class Indians taking to the skies and carriers employing thousands of young men and women.
The downturn has also hit national airline Air India, which has asked the government for an expensive bailout.
(Reuters)