The International Air Transport Association (IATA) has called for India to address "crippling issues of high costs, exorbitant taxes and insufficient infrastructure" in its aviation sector.
Tony Tyler, IATA’s director general and CEO, in his keynote address to the Confederation of Indian Industry, said Indian aviation "is in a multi-faceted crisis".
"Before aviation can deliver greater benefits to the Indian economy, this crisis must be resolved with coordinated public policies."
Tyler said it was time for a grand India Inc plan to build India’s aviation future and thereby strengthen the Indian economy.
Tyler said India was a market of about 100 million passengers annually.
"Looking ahead, if Indians travelled as much as Americans, we would see a market potential of over two billion travellers."
Indian airline losses approached US$2 billion for the year ended March 2012, after losing an estimated $3.5 billion over the three previous years.
Tyler called for expedited work to expand capacity in Mumbai. "A new airport is needed in Mumbai or economic opportunities will be lost," he said.
