CII moots 10-pronged strategy for aviation sector

CII said government should formulate a time-bound action plan and formulate an integrated approach in concurrence with ministries of civil aviation, tourism and defence.

It also demanded lifting of the ban on operation of single engine aircraft, rationalisation of customs duty on spares and complete elimination of the inland air travel tax IATT.

The chamber said viability of regional airlines was being constrained by heavy tax on aviation turbine fuel, four times increase in the price of aviation gas AVGAS, customs duty and 15 per cent IATT.

The CII report said commercial civil aviation has so far been one dimensional and dominated by large carriers on long regional routes. The regional or feeder routes were mainly virgin routes where it took time to generate enough load or break-even and instead of being provided incentives, these airlines were being subjected to heavy taxation.

The absence of feeder and regional airlines in the country was hampering steady growth in air services at a reasonable price, it said, adding that a time-bound action plan and integrated approach by the ministries of civil aviation, tourism and defence was needed to revive use of small aircraft.

CII pointed out that scarcity of resources and lack of professional management had led to the closure of many state and regional airlines including UP Air and Gujarat Airlines.

There are nearly 350-400 semi-prepared landing strips in the country which could be made available for use to the small aircraft, it said, adding that small aircraft could be used most effectively to boost tourism especially at inaccessible places in the North-East and Ladakh.

It sought creation of hubs in select tourist locations for carrying out such operations.