A concerned government to conduct review of aviation industry in June
30 May 2008
New Delhi: Rising fuel prices, coupled with a sluggish economic scenario, is already beginning to spark off a downward spiral in the aviation industry, which so far had been a high growth industry. A concerned government has now called a meeting of all airline chiefs, as part of a scheduled quarterly review of the aviation industry.
The slowdown is set to directly impact all airport expansion plans. Along with private players, the Airports Authority of India plans to spend Rs45,000 crore over the coming years in creating airport infrastructure.
Airport developers, both private and AAI, are beginning to feel the pressure with carriers delaying payments on a regular basis.
Cabinet secretary, KM Chandrashekhar, will review progress on the modernisation of the Indira Gandhi International airport by Delhi International Airport Ltd (DIAL) and the Chatrapati Shivaji International airport in Mumbai by the Mumbai International Airport Ltd at a meeting on 3 June.
The CEOs of all domestic airlines will meet top officials of the civil aviation ministry on 4 June and discuss issues like the price of aviation turbine fuel, sales tax, demand for higher aeronautical charges at Delhi and Mumbai airports, and new levies.
Despite frequent hikes in fuel surcharge, which add to the overall cost of an air ticket, airlines are still reporting huge losses.
