Click to play videoNew Delhi: Financial worries are plaguing the Indian aviation industry. With losses mounting to $1.4 billion, second only to the US, (International Air Transport Association figures), there's no option but to hike fares.
Aviation Turbine Fuel rates have gone up by 60 per cent due to taxes. IATA says the government must act fast to save the sector.
“We cannot go on being charged this way. The fuel taxes are 60 per cent more expensive here. In times like this the government has to take responsibility,” says IATA Director General, Giovanni Bisignani.
With passenger demand dwindling and fuel costs climbing, airlines have increased fares by 30 per cent over the last six months. This is likely to go up further.
Top carrier Jet says it will hike fares next month.
“We are going for a hike during peak time the fares should go up but it will be in single digit,” says Jet Airways CEO, Wolfgang Prock-Schauer.
India's airline sector has expanded in the last four years, placing a record $12 billion in aircraft orders. They are now deferring deliveries and cutting growth. But if fuel prices continue to climb, survival of a few will be difficult.
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