Why India's aviation sector is hit

Rising aviation turbine fuel cost, poor infrastructure, regulatory controls and reluctance of consumers to take to air travel are some of the issues hurting aviation industry in the country, Deccan Aviation executive chairman Captain G R Gopinath said.

ATF was nearly 60 percent higher in India than elsewhere, which was hurting the industry, especially low-cost carriers, he said on Monday.

If ATF was removed and put under the declared goods, the taxes could be reduced greatly, he added.

Moreover, he said, "Infrastructure has not kept up with the aviation boom. There is a need to pump larger investments into building up infrastructure, including new airports, connecting smaller towns and cities as well as building multiple airports in major cities."

The private sector, he said, showed a keen interest in developing airports, which should be considered by the state and central governments. In Karnataka, the state government had received 10 expression of intents for developing airports in Shimoga, Gulbarga and Bijapur. The bid for developing an airport in Hassan had been completed.

Andhra Pradesh and Maharashtra were also looking at developing airports in the region, which, he said would augur well for the aviation industry at large.