Mumbai: Indigo the largest airline in this country works with other industrial players and the Civil Service Ministry to overcome the “long problem” of the indirect tax rate, which is currently at 21 percent, according to the Chairman of Ronojoy Dutta.
In Christmas greetings and new years to employees, Indigo CEO also marks that profitability is under great pressure due to a low tariff regime when the operator focuses on the “fix” balance sheet.
His views also came during the civil aviation sector slowly on the recovery path after being baked by the Pandemic Coronavirus.
While various restrictions, including on their way, were down until the end of last month, the emergence of the omicron variant had triggered a fresh health problem and various countries had begun to impose restrictions to carry infection.
The domestic aviation industry has ventured for direct and indirect taxes that are lower at various levels.
“We pay more than 21 percent of our income as indirect taxes to the government.
We think it’s not mind that important infrastructure industries such as flights, with the effects of large multipliers in work, must be taxed high.” We work with other players in the industry and the Civil Service Ministry to overcome this old problem, “Dutta said in the message.
The head of Indigo also shows that even because the domestic flight market is growing rapidly, posting a second wave, which demand air travel is almost pounded, prices Flight tickets in India are between the “lowest” in the world.
“As a level of income in the country, we can expect help in the form of a higher ticket price, but in the meantime, there is a fairly large pressure on profitability,” he said.
During a pandemic , this airline caused a big loss and had been forced to take a large number of debt to fund the burns of money, Dutta said and emphasized that “improving our balance, he et is an urgent task”.
Describes the “game plan” for the future, Dutta says maintaining a position leadership costs, of course, “critical interests” amid increasing A domestic competition along with international expansion, as “We see a very large scope for geographic growth around us”.
“We see opportunities to increase our income by further segmented our customer base and offer additional services tailored to each segment.
Developing our cargo business is one of our main initiatives,” he said.
Significantly, 2022 is expected to see two more players – Ace Investors Rakesh Jhunjhunwala who are ultra long aircraft carriers and grounded jet airways under the new owner (road-Kalrock Consortium) – take it to the sky.
Dutta said the prospect of the growth of this airline was reflected well in the planned fleet, with growth muted over the next 24 months but then it was estimated to accelerate to 25 percent per year.
“…
Given the environmental challenges of our planet, we will invest in sustainable growth”.
‘Working with other players to overcome’ old problems ‘of indirect taxes high’
