Budget should focus on reviving airline ops and boost demand: ICRA

New Delhi: The government should focus on revitalising operations and boost passenger traffic in the Budget, as pandemic-hit airlines are working towards revival, rating agency ICRA NSE -0.85 % said today.

“The Indian aviation industry expects financial aid and reduction in levies and taxes in the immediate near term to revitalise operations and boost passenger traffic, which include among others, lowering taxes on ATF and reducing other levies like airport charges, parking and landing and navigation charges. Furthermore, since airlines have to currently follow a fare band as per the directives of the Ministry of Civil Aviation (MoCA), which is constraining their ability to charge higher fares, these entities want relaxations in terms of the fares they can charge,” the agency said in a media release.