Prime Minister Narendra Modi has another admirer. But this time, the admiration comes with a request — to allow Gulf-based carriers more flying rights.

The CEO of Qatar Airways, Akbar Al Baker, said he was touched by Modi’s speech after he was sworn in, when he said that “if each Indian takes one step forward, that will be 1.2 billion steps”.

For the aviation industry in India, the potential is so huge that even if you allot capacity to every airline that is applying to fly to India, you will still have load factors in excess of 80 per cent, said Al Baker, who is also President of the 70th IATA assembly here.

Al Baker urged the Modi Government to look at aviation as a very important tool to generate economic growth because it is “only aviation that will bring you trade and tourism, which in turn will bring more employment and economic prosperity for the Indian people, who have up to now been deprived of economic opportunities. I hope this is a very strong message to whoever is listening.”

End political interference Taking forward Al Baker’s wish-list, IATA Director-General Tony Tyler wanted an end to political interference in the aviation industry, reduction in excessive regulations for the sector, slashing of state taxes on jet fuel and an airport in Navi Mumbai.

“I hope to visit India and, perhaps, discuss these and other ways (to help the aviation industry) with the new Government. We wish the new Government every success in maximising the potential of the Indian aviation industry,” he added.

India has six scheduled (which fly on the basis of fixed schedule and published fare) airlines — Indigo, Spicejet, Jet & Jetlite, Air India, Go and Air Costa. Another scheduled airline, AirAsia India, is scheduled to start operations from June 12, while no date has yet been announced for Tata-Singapore Airlines.

Domestic carriers have mainly two complaints — the high tax on fuel and steep airport charges. Foreign airlines, too, have serious complaints about high airport charges.

Hitting out at the costly charges, Tyler said Governments are basically selling airport franchises at hugely valued prices. Often, this is because private companies see a big opportunity to take advantage of poor regulations and overcharge airlines and their passengers, he alleged.

Regional performance On the occasion, IATA also released a report on the economic performance of global airlines. Airlines in the Asia-Pacific region are expected to earn $3.2 billion in 2014, higher than the $2.0 billion they made in 2013, it said.

Profit per passenger is below the industry average at $2.98, as is the net margin of 1.6 per cent.

“The region’s financial performance has also been dragged down by difficulties in the Indian market,” the world body said.

comment COMMENT NOW