Airlines set to prune losses significantly

The International Air Transport Association (IATA) has said it expects Indian airline companies to cut down their combined losses to $400 million 2010 from $1.7 billion last year.

The International Air Transport Association (IATA) has said it expects Indian airline companies to cut down their combined losses to $400 million 2010 from $1.7 billion last year.

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Giovanni Bisignani, the CEO of IATA, which represents around 230 airlines comprising 93 per cent of scheduled international air traffic, attributed this to an increase in domestic traffic, which has grown by around 20 per cent in the last one year.

Bisignani criticised the the service tax on air travel, terming it illegal. “Since 2006, a 10.3 per cent service tax has been imposed on international first and business class tickets. Such taxes are illegal by ICAO rules. It is an embarrassing situation for such a relevant country as India,” he said.