Reason why airlines cannot grow in India ?

Indian aviation is growing at a rapid speed of more than 15% ,but airlines are hardly making good profits. The biggest reason for not making good profit is due high ATF prices. For a airline, the biggest factor is the rate of ATF (Aviation Turbine Fuel ).ATF rates are highest in INDIA.Presently ATF costs Rs 60,000( approx) per kilo litre in INDIA. The sales tax is 28 % in Karnatake and 30% in Gujarat. Airlines have urged to reduce the state tax. Apart from this Govt. Of Indi imposes VAT, CESS TAX, EXCISE DUTY,IMPORT DUTY .The rate to govt for one litre of ATF comes around Rs17, whereas it is sold at Rs 60.This is all just ridiculous .


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