The New Nation - Internet Edition

PTI, New Delhi

Warning that some Indian airlines could fold up if structural changes were not carried out immediately, the IATA has asked the government to take speedy steps to enable the industry weather the 'perfect storm' of high costs and falling demand.

'India is among the most expensive places on the planet to buy aviation turbine fuel from. In August, it was 58 per cent more expensive to buy fuel in Mumbai for domestic flights than in Singapore,' International Air Transport Association director general and CEO Giovanni Bisignani told PTI in an interview in New Delhi.

Observing that the Indian aviation industry was passing through a 'fragile and delicate moment,' he said some airlines could go bust in the coming few months if "structural changes are not carried out expeditiously.'

As many as 25 carriers worldwide have folded up operations in the past several months due to huge losses, the latest being Italian national carrier Alitalia, leading to over 100,000 jobs in the aviation sector being lost.

He projected a cumulative loss of $1.5 billion for Indian carriers this year, second largest after that in the US.