IATA has called for the development of a comprehensive policy for aviation aligned with the Indian Government’s stated intention to make it easier to do business in India. The objective is to allow India to derive maximum social and economic benefits from its aviation market growth. Currently the 9th largest aviation market, India will see about 280 million passengers by 2029, by which time India would be the world’s third largest aviation market, behind China and the US.
In his keynote address at the India Aviation Day on 14 July 2015 in New Delhi, Tony Tyler, IATA’s Director General and CEO highlighted priority areas where work is needed to reduce costs in India:
- Reducing the tax burden - align the application of the Service Tax with a principle that it does not apply to services rendered outside of India, zero-rate the incoming GST regime for international air transport services in line with OECD guidelines, and protect airlines from double-taxation on income
- Competitive fuel pricing - grant “declared goods” status for jet fuel and open access to pipelines that supply fuel to airports
- Allow the Airports Economic Regulatory Authority to do its work independently
Tyler also highlighted the need for smarter regulation in India. This essentially means taking a business-like approach to regulation using common-sense and proven principles
The Aviation Day was organized by IATA in partnership with the Ministry of Civil Aviation (MoCA) and the Confederation of Indian Industry (CII) – and was built around the theme of “Addressing aviation fundamentals to drive India’s emergence as the 3rd largest global Aviation Market”.
India’s Civil Aviation Minister Mr. Ashok Gajapathi Raju was the Chief Guest on the occasion. Other prominent speakers included Mark Schwab, CEO, Star Alliance; Patrick de Castelbajac, CEO, ATR; Phee Teik Yeoh, CEO, Vistara. The Indian government and regulatory bodies were well represented in a panel discussion held during the event, including M Sathiyavathy, Director General of Civil Aviation; Machendranathan, Chairman of the Airport Economic Regulator; RN Choubey, Permanent Secretary, Civil Aviation; and RK Srivastava, Chairman, Airports Authority of India.
The Aviation Day was well attended by over 300 invitees drawn from business, industry, government and the media in the national capital.