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Aviation

Why leading an airline in India requires unique management capabilities

Updated : April 02, 2019 12:11 PM IST

In spite of the goods and service tax (GST) implemented in 2017, ATF continues to be out of its purview, leading to incredibly thin margins of 2-4 percent in the industry.
Taxation on maintenance and repair in India remains very high.  With an 18 percent GST levy on sale price, providers have to compete with overseas players that only pay 5 percent - that too at cost price.
External commercial borrowing (ECB) lines are extremely hard to access and with the recent default by Jet Airways on a $140 million ECB loan, this situation will get worse before it gets any better
Why leading an airline in India requires unique management capabilities
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