IATA calls for 'India Inc.' approach to resolve India's aviation crisis
IATA director general and CEO Tony Tyler, in his keynote address to the Confederation of Indian Industry, called (25-Jul-2012) for an “India Inc.” approach to resolve India’s aviation crisis and improve competitiveness to drive economic and social benefits. IATA noted the significant impact of aviation, which in India supports 1.7 million jobs, 0.5% of GDP and 90% of international tourist arrivals. Mr Tyler stated, “That’s impressive but it could and will be much more. Today, India is a market of about 100 million passengers annually. Looking ahead, if Indians traveled as much as Americans, we would see a market potential of over 2 billion travelers". Mr Tyler also noted India’s airline industry is struggling financially. Indian airline losses approached USD2 billion for the 12 months ended Mar-2012 after losing an estimated USD3.5 billion over the three previous years. [more - original PR]
IATA: “Indian aviation is in a multi-faceted crisis. Before aviation can deliver greater benefits to the Indian economy, this crisis must be resolved with coordinated public policies. It’s time for a grand plan to build India’s aviation future and thereby strengthen the Indian economy. To do that, we need an ‘India Inc.’ approach that addresses the crippling issues of high costs, exorbitant taxes and insufficient infrastructure.... A bright future is at hand for Indian aviation if we can find common purpose among all stakeholders. India must not settle for a bronze medal in global aviation. If we can take deliberate action on a handful of critical issues – reducing taxes, ensuring capacity and keeping costs in check – a gold is entirely possible. And the benefits of such an effort will be shared across the entire economy,” Tony Tyler, director general and CEO. Source: Company statement, 25-Jul-2012.