It's Hard for Airlines to Make Money in India, IATA Says
- Jet fuel taxes, infrastructure bottlenecks hurting carriers
- India is a particularly challenging place: IATA CEO de Juniac
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India may be the world’s fastest growing major aviation market, but it is difficult for airlines to make money as excessive taxes and poor infrastructure choke the industry, according to the International Air Transport Association.
While jet fuel accounts for about 24 percent of a carrier’s average costs globally, it is 34 percent in India, making domestic airlines even more vulnerable when oil prices rise, Alexandre de Juniac, chief executive officer of IATA, said in New Delhi on Tuesday. Federal and local levies of up to 30 percent add to the burden, he said.