Indian aviation sector could lose $1.5 billion: IATA

New Delhi: The Indian aviation industry will be second only to the US in posting the highest losses globally for the year 2008-09.

At a time when American carriers are pegged to lose over $2 billion, India would have the second position in the losses tally, with an estimated $1.5 billion in losses, and together account for over half the $5.2 billion overall losses, according to International Air Transport Association (IATA) chief Giovanni Bisignani.

Bisignani  has called upon the government to awaken and take the much needed steps to rescue the industry.

Terming the situation faced by the Indian aviation sector as 'critical', he said India needed to lower jet fuel prices, infrastructure charges and follow global standards.

"Fuel is the biggest factor impacting profitability'', Bisignani said, adding that though fuel is 36 per cent  of average industry costs, it is up to 50 per cent for some Indian carriers. He called for a lowering of taxes and base costs charged by the public sector oil marketing companies.