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"Flying For All” Global Aviation Summit to be held in Mumbai

"Flying For All” Global Aviation Summit to be held in Mumbai

Ministry of Civil Aviation and FICCI is organizing first-ever 2 day Global Aviation Summit (GAS) from 15 to 16 January 2019 in Mumbai.

Theme of the GAS: Flying for all

International Civil Aviation Organisation's (ICAO) prediction of a "100 percent increase in global air travel by 2030", the summit will discuss ways to tap this growth for Indian aviation sector.

GAS 2019

The GAS is supported by ICAO, Federal Aviation Administration (FAA) of the US, IATA, Civil Air Navigation Services Organisation, Airports Council International and Association of Asia-Pacific Airlines and will include conferences, exhibitions and G2G, G2B and B2B exchanges.

Indian Aviation Industry:

According to the Directorate General of Civil Aviation, India’s air passenger traffic has grown by at least 16% annually over the past decade. In 2000-01, it stood at a paltry 14 million passengers.

In 2017, Indian airlines flew nearly 140 million passengers, most of them domestic. It is now the third largest aviation market in the world with growth rates that leave the US and China in the dust. 

Yet, that growth has been largely profitless.

The major airliners are in loss. Jet Airways and Spicejet have dwindling record and never have a healthy balance sheet.

State run airways Indian Airlines was never in profit.

Why Indian airways are making losses?

Whenever the rupee depreciates against dollar; India’s major carriers are hit hard as their costs are dollar denominated from aircraft lease rents, maintains cost to ground handling. It badly affects as their cost increases and profit shrinks.

Second, and crucially, aviation turbine fuel (ATF) costs remain as big a pain in Indian carriers’ necks now as they were when the financial crisis hit. The Centre charges 14% excise duty on ATF. The states pile on their own sales tax that can go as high as 29%. The 2014-16 oil price plunges briefly masked the full effects of this.

Thirdly, the intense competition among domestic carriers, the need to capture a slice of the ever expanding market and passenger price sensitivity mean that airlines find it difficult to raise ticket prices. 

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