Naresh Goyal, the founder and promoter of Jet Airways, which reported on Saturday a profit for the June quarter, after five severe quarters of losses, said high taxes and levies in the aviation sector are killing airlines in India and argued for a need to rationalise taxes for the sector to survive.
Goyal said, "Aviation should not be treated as luxury, it is essential for the economic growth of the country."
On Saturday, Jet had reported an impressive growth in revenues - up 31.5 per cent from the same quarter last year on a standalone basis. He attributed it to the prevailing sanity in market for the past six months as competitors stopped undercutting peers and selling tickets below cost price.
Jet reported a profit of Rs 24.7 crore for the June quarter, a huge improvement from the Rs 298.12 crore loss it posted for the preceding March quarter. Jet had reported a Rs 123.2 crore loss in the quarter ended June 2011. The profit accrued from exceptional items such as sale and leaseback of aircraft amounted to Rs 52.4 crore and unamortised portion of foreign exchange losses to Rs 288.7 crore as per a report in ET.
Earlier, SpiceJet, India's third largest in terms of market share, had reported a net profit of Rs 56.2 crore.
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