IATA chief Alexandre de Juniac hopes the Indian government will rationalise taxation on aviation to help the industry weather financial turbulence.
THE INDIAN AVIATION INDUSTRY is facing multiple headwinds: rising fuel prices, a falling rupee, and the inability of domestic carriers to raise fares adequately. But there is a silver lining—50 months of consecutive double-digit air passenger growth. Alexandre de Juniac, director general and CEO of the International Air Transport Association (IATA), tells Fortune India in an interview that apart from clearing regulation bottlenecks and lowering tax, the government needs to quickly invest in airport infrastructure and set up more air traffic control towers to help improve the financial health of these airlines. Edited excerpts:
What do you make of the Indian aviation industry right now and the kind of trouble it faces?
The first point is that Indian aviation could have a very bright future with very strong growth in front of it. But it is operating under very tight financial constraints. No one is making money these days due to macroeconomic factors, including the depreciation in the rupee and the increase in fuel prices. The problems airlines are facing right now are also due to the additional costs that some governmental policies or measures are putting on their balance sheet and profit and loss account.
The second type of constraint is that supply is limited because investments haven’t been done on airports and traffic control. So these two have to be significantly and quickly improved. You also have a regulation that is sometimes too tight, and, of course, taxation is quite high. The airlines could be even more successful and stronger but they are operating under severe constraints.
Do you think the airlines could have done better when the conditions were more favourable, given the kind of passenger growth India has seen over the past few years?
Bu hikaye Fortune India dergisinin September 15 - December 14, 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Fortune India dergisinin September 15 - December 14, 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
IN GOOD COMPANY
BIRDS OF A FEATHER MAY FLOCK TOGETHER, but what about other collectives of critters-and what do you call them when they do?
Sense or Nonsense?
Why some birds can taste and smell - but others can't
Food-Focused and Fierce
Meet Canada jays and learn why they eat almost anything they can find
Sparrow Look-Alikes
Distinct sounds help separate these similar species
ON THE MOVE
Birds approach the challenges of migration in surprising ways. Learn about how they walk, swim or take the scenic route during their travels.
Embracing the Darkness
From black plants to moody decor, Gothic garden elements can offer a unique outlet to express your dark side
Autumn Wonders
Fall colors offer befitting backdrops for these stunning reader photos
Red-Hot Plants
Scarlet-hued berries add a pop of color to any garden
YOUR OWN Perfect Prairie
Learn how to cultivate an oasis of grassland flora in your backyard
Maple Mania
Amazing facts about this fall foliage mainstay
THE GE NERAL
How ELIZABETH PRELOGAR, America's low-key, high-powered solicitor general, is holding the Supreme Court's feet to the fire
HELLA, YES
Thirty years into her career, Dutch design star Hella Jongerius proves the best ideas-and objects are those that grow and transform along with us
BAD FAITH
From exiled actors to academics, influencers to intellectuals, VF gets under the hood of the Catholic right's celebrity conversion industrial complex
Boys and THEIR TOYS
Inside the hypermacho, Bible-thumping alt-tech universe trying to take on Silicon Valley-from El Segundo
STRANGER Things
The Democrats' short hot summer of \"weird\"
CHARM SCHOOL
In the hands of Ashe Leandro, a historic New York City house gets a delightful makeover
FUNNY BUSINESS
NEARLY 50 YEARS AGO, SATURDAY NIGHT LIVE LAUNCHED A REVOLUTION THAT CHANGED COMEDY, TELEVISION, AND THE MOVIES. NOW DIRECTOR JASON REITMAN HAS RE-CREATED THE CHAOTIC HOURS BEFORE SNL'S FIRST EPISODE. LIVE FROM NEW YORK, IT'S 1975!
A House Divided
The Mellon dynasty has long been known for its old money refinement and discretion. But when TIM MELLON became Donald Trump's biggest donor many members of the family were mystified-and not afraid to talk about it
VANITIES
MAISY STELLA knows how to think outside the box
Changed for Good
Blending architectural styles, the new movie Wicked ventures off the beaten yellow-brick path
Staying Present
At his Manhattan apartment, Queer Eye star and first-time homeowner Antoni Porowski leans into the moment
Going Big
From her vast new studio in the South of France, ceramist Olivia Cognet ups the ante
Table Talk
Gae Aulenti's 1965 marble Jumbo table still has outsize appeal
Earth Tone
In Mexico's Valle de Guadalupe, a new wellness resort looks to the land
BOTH NOW SIDES
SELENA GOMEZ is seriously in loveand making the best work of her career. With the audacious Emilia Pérez hitting theaters and Only Murders in the Building returning to TV, the actor, singer, entrepreneur, and mental health advocate talks, about the climb
shades of eden
In her magical LA garden, artist Mimi Lauter contemplates the cycle of life and the rapturous power of color
GIVE AND LET GIVE
MELINDA FRENCH GATES is speaking out for the rights of women and girls, embracing her role as godmother to her fellow philanthropists, and getting political, even when it's a little uncomfortable.
mother nature
Taking inspiration from her own childhood memories, Jennifer Garner crafts a cozy California home and garden where she and her family can put down roots
THE BILLIONAIRE'S SECRET
THE GERMAN INDUSTRIALIST KLAUSMICHAEL KUEHNE, BORN IN 1937, IS ONE OF THE RICHEST PEOPLE IN THE WORLD, WITH MORE MONEY THAN KEN GRIFFIN, OR MACKENZIE SCOTT, OR FRANÇOIS PINAULT. WHERE DID HIS FAMILY FORTUNE COME FROM? THE NAZIS KNOW
BOTH SIDES NOW
Celebrated for his fantastical, genderfluid fashions, designer Harris Reed brings the same rule-flouting approach to a petite London apartment