India slammed by IATA for taxing international tickets, creeping re-regulation
The International Air Transport Association (IATA) today reprimanded India for taxing international tickets in contravention of the resolutions of the UN body International Civil Aviation Organization (ICAO). "We must take governments to task. It is unacceptable that global standards are being ignored by the very governments that created them," IATA's Director General and CEO Alexandre de Juniac said.
Juniac also takes a dig at GST
Juniac said India helped develop ICAO resolutions prohibiting the tax on international tickets and yet it persists in taxing international travel. He was apparently taking a dig at the imposition of GST and enhancement of its rates on the international air tickets. Juniac was presenting a report at the 74th IATA Annual General Meeting and World Air Transport Summit in Sydney, Australia today.
Smarter regulation needed to counter slithering re-regulation: Juniac
Juniac said the state of Aviation Ministry is getting stronger with its core mission to deliver safe, secure, accessible connectivity. "But there are challenges. Smarter regulation needs to counter the trend of creeping re-regulation. Global standards must be maintained by the states that agreed (upon) them. And we need to find efficient solutions to the looming capacity crisis," he said.
Trade war looms would hit aviation industry: Juniac
Alluding to the Trump administration's announcement of an imposition of hefty tariffs on the import of steel and other products, Juniac warned the specter of a trade war looms would hit the aviation industry as well. The forces of protectionism are gathering strength, the specter of trade war looms, debates on migration and immigration rage and trust among nations is showing fragility, he said.
Industry's financial foundation growing stronger: Juniac
Juniac said it is a challenging industry to operate. Protectionism could derail successful international joint ventures and fuel costs are expected to be up 25% on 2017, he said. He added, however, industry's financial foundation has grown stronger, projecting that the airlines would make nearly $40 billion this year as passenger demand is expected to grow 7% and cargo by 4%.
Challenges will be met: Juniac
"There are challenges. We will meet them head-on. How? By building the partnerships and understanding needed to further the reach and expand the benefits of the amazing industry. I will say it proudly again, we are the business of freedom," Juniac said.
