Aviation sector value not well understood by many govts: IATA

Tags: Aviation, IATA, News
Governments across the world have gained "substantially" from the airline industry, earning an estimated

RELATED ARTICLES

$121 billion in tax revenues this year alone, but the aviation sector's importance was "not well understood" by many of them, global airlines' body IATA has said.

This has forced the International Air and Transport Association (IATA) to appeal to the governments, including the Narendra Modi-led dispensation in India, to slash taxes, restrain private airport operators from levying high charges and relax "excessive" regulations in the aviation industry to maximise its full potential to generate economic growth.

The governments have "gained substantially from the good performance of the airline industry. Airlines and their customers generated an estimated $121 billion in tax revenues this year", IATA's Chief Economist Brian Pearce said at the just-concluded World Air Transport Summit in Doha.

The total global tax revenue generated was almost half of the gross value added by the industry paid to governments in payroll, social security, corporate and product taxes.

The value of international trade shipped by air this year has reached $6.8 trillion, while people flying this year, including tourists, spent an estimated $621 billion, Pearce told PTI.

"But in many countries the value of aviation for governments and the wider economy is not well understood. The commercial activities of the industry remain highly constrained by bilateral and other regulations," he said.

IATA's Director General & CEO Tony Tyler had earlier said his "wish-list" for the new Indian government included stopping "political interference" in the industry, reducing excessive regulations, slashing of state taxes on jet fuel and building the long-awaited Navi Mumbai airport.

He had criticised the high taxes and airport charges in India and indicated his opposition to the privatisation of airports.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • FDI in insurance must be allowed with a rider to increase penetration

    The Union cabinet has cleared the proposal to raise foreign direct investment (FDI) in the insurance sector through the FIPB route from the current 26

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

Which is safer? Flying or driving?

The recent tragedies involving the Taiwan’s TransAsia Airways flight, and ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture