Mumbai: The country’s largest airline blue is working with other industry players and the civil aviation ministry to address the “long-standing problem” of a high indirect tax rate, which currently stands at 21 percent, according to its chief Ronojoy Dutta,
in that Christmas And Happy New Year to the employees, Indigo CEO It also indicated that at a time when the carrier is focusing on “repairing” its balance sheet, profitability is under considerable pressure due to the low airfares regime.
His views also come at a time when the civil aviation sector is on a gradual recovery path after suffering the coronovirus epidemic. While various restrictions, including travel, were being eased by the end of last month, the emergence of the Omicron variant has raised fresh health concerns and various countries have started reimposing restrictions to contain the infection.
The domestic aviation industry has been advocating for reduction of direct and indirect taxes at various levels.
“We pay over 21 per cent of our revenue to the government as indirect taxes. We think it is unfair that a critical infrastructure industry such as aviation, with its large multiplier effects in employment, is taxed at such a high rate. should be imposed.
“We are working with industry and other players in the Ministry of Civil Aviation to address this long-standing problem,” Dutta said in the message.
The IndiGo chief also pointed out that with the domestic aviation market growing at a rapid pace, after a second wave that has virtually suppressed demand for air travel, airline ticket prices in India are the “lowest” in the world.
“As income levels pick up in the country, we can expect some relief in the form of higher ticket prices, but in the meantime, there is considerable pressure on profitability,” he added.
During the pandemic, the airline suffered huge losses and was forced to take huge amounts of debt to cover its cash burn, Dutta said and stressed that “repairing our balance sheet is an urgent task”.
Outlining the “game plan” for the future, Dutta said that maintaining a position of cost leadership is, of course, of “critical importance” amid increased domestic competition along with international expansion, as “we There are huge scope for profitable growth in all around geographies”.
“We see opportunities to improve our revenue by further segmenting our customer base and offering additional services tailored to each segment. Developing our cargo business is one of our key initiatives,” he added.
Significantly, two more players are expected in 2022 – a few investors Rakesh Jhunjhunwalaultra long cost carrier akasa And taking Jet Airways to the skies – under new owners (the Jalan-Kalrock consortium).
Dutta said the airline’s growth prospects are well reflected in its fleet plan, with growth muted for the next 24 months but then expected to grow at 25 per cent per annum. “… given the environmental challenges of our planet, we will invest in sustainable development”.
in that Christmas And Happy New Year to the employees, Indigo CEO It also indicated that at a time when the carrier is focusing on “repairing” its balance sheet, profitability is under considerable pressure due to the low airfares regime.
His views also come at a time when the civil aviation sector is on a gradual recovery path after suffering the coronovirus epidemic. While various restrictions, including travel, were being eased by the end of last month, the emergence of the Omicron variant has raised fresh health concerns and various countries have started reimposing restrictions to contain the infection.
The domestic aviation industry has been advocating for reduction of direct and indirect taxes at various levels.
“We pay over 21 per cent of our revenue to the government as indirect taxes. We think it is unfair that a critical infrastructure industry such as aviation, with its large multiplier effects in employment, is taxed at such a high rate. should be imposed.
“We are working with industry and other players in the Ministry of Civil Aviation to address this long-standing problem,” Dutta said in the message.
The IndiGo chief also pointed out that with the domestic aviation market growing at a rapid pace, after a second wave that has virtually suppressed demand for air travel, airline ticket prices in India are the “lowest” in the world.
“As income levels pick up in the country, we can expect some relief in the form of higher ticket prices, but in the meantime, there is considerable pressure on profitability,” he added.
During the pandemic, the airline suffered huge losses and was forced to take huge amounts of debt to cover its cash burn, Dutta said and stressed that “repairing our balance sheet is an urgent task”.
Outlining the “game plan” for the future, Dutta said that maintaining a position of cost leadership is, of course, of “critical importance” amid increased domestic competition along with international expansion, as “we There are huge scope for profitable growth in all around geographies”.
“We see opportunities to improve our revenue by further segmenting our customer base and offering additional services tailored to each segment. Developing our cargo business is one of our key initiatives,” he added.
Significantly, two more players are expected in 2022 – a few investors Rakesh Jhunjhunwalaultra long cost carrier akasa And taking Jet Airways to the skies – under new owners (the Jalan-Kalrock consortium).
Dutta said the airline’s growth prospects are well reflected in its fleet plan, with growth muted for the next 24 months but then expected to grow at 25 per cent per annum. “… given the environmental challenges of our planet, we will invest in sustainable development”.
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