Friday 22 June 2012

Airline hub may create 30,000 jobs

A blueprint, which is being considered by the ministry of civil aviation, promises to create around 30,000 jobs in aviation and related sectors in the six metros. Along with that, it also promises an economic benefit of over Rs40,000 crore, if brought into action.

Out of the 30,000 jobs, Mumbai alone will have space for 8,100 additional jobs.

The civil aviation ministry is taking desperate measures and amending policies to develop airline hubs in India, comparable to those in Dubai, Singapore, Frankfurt and Heathrow. Prime Minister Manmohan Singh recently called for the Airline Hub Policy.

“Indian airports are in a good position to establish them as a preferred hub for neighbouring countries,” said a civil aviation ministry official.

According to the blueprint being considered for implementation by civil aviation ministry for creating hubs in India, a major factor affecting the airline industry is the mounting price of fuel.

If the metros (Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad) drop sales taxes (ranging between 16-29 % for different metros) and charge just 4% service tax on fuel, it will increase passenger traffic by around 5.2 million domestic passengers at the six metro airports, creating around 30,000 jobs in the process.

The paper adds that the reduction in fuel tax will also bring around 6 million additional international passengers as well as additional revenue per annum.  

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