Govt Mulling Strategy To Boost Performance Of Airlines: Raju

"We are a vast source of perishable goods across the world. If this potential is tapped and the state governments are also involved, we can ask airlines to carry such items. This will give results," he said.

Asked about high fuel costs being borne by Indian carriers mainly due to taxes charged by states, Raju said he has urged all chief ministers to address this problem as it "acts as a dampener to aviation activity". State sales taxes and other charges on jet fuel average at about 29 percent.

On the massive expenses borne by airlines in repairing their fleet abroad, he agreed that the maintenance, repair and overhaul (MRO) operations also faced high rates of taxation.

Regarding the role that could be played by state governments to improve aviation activities across India, the minister said growth in aviation sector in states would lead to heightened economic activity and generation of jobs.

Raju said there were suggestions for state governments to come up with "concessions like those given to SEZs (special economic zones)" to the MROs which would not only add to economic activity in the states but also generate jobs.

"Airlines will fly where the costs are low. Increased ticket costs are borne by the consumers. So if you reduce fuel costs, that will make tickets cheaper and encourage more people to fly from that place making the place more attractive," he said.
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