INDIA’S private airline operators yesterday called off a strike planned for August 18, responding to a government offer to hold talks to see how the ailing industry could tide over its financial woes.
The Federation of Indian Airlines (FIA), which includes five of India’s top private airlines, said in a statement that the strike was also being put "on hold" in view of the inconvenience it could cause of thousands of passengers.
India’s aviation industry soared with growth of more than 25 per cent in the past few years when the economy was booming, but is expected to lose $2.1bn (£1.24bn) in 2009/10 because of high operating costs and a dip in demand after the economic slowdown.
Private airlines, seen as a symbol of India’s economic modernisation, carried about 83 per cent of India’s 11 million air passengers in the June quarter.
"The FIA hopes that constructive dialogue with the government will lead to redressal of the problems faced by the aviation industry," the statement said.
Private airlines say they need the government to reduce taxes on jet fuel to a uniform four per cent from the current average rate of 26 per cent across various Indian states.
Aviation fuel makes more than 40 per cent of the operating costs of an airline. They also want the government to cut a number of other levies, including airport development and landing and navigational charges.
The downturn has also hit national airline carrier Air India, which has asked the government for an expensive bailout.
