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The domestic and international airline industry has protested the move of Delhi airport to increase charges.
Airlines officials point out that the latest increase will not only put additional burden on the passengers but could also see airlines reconsider their operations here and possibly withdraw from the market.
The Geneva-based International Air Transport Association has pointed out that the proposed rate card is also unacceptable as it violates ICAO's policy of cost-based charging by having different landing fees for international and domestic flights.
The Airports Economic Regulatory Authority has approved the increased rates, to be imposed from May 15 this year.
The Senior Vice-President, Finance, Jet Airways, Mr Mahalingam Shivkumar, said that the “entire cost increase will be passed on to the passenger,” without getting into details of specific price increase on domestic routes. A senior official of Air France-KLM estimated that the latest revision in rates could see travel to and from India increase by $50-100.
Urging the Ministry of Civil Aviation to take a relook at the decision, the General Manager Indian Subcontinent, Air France-KLM, Mr Pieter De Man, said that the latest move will make Delhi one of the most expensive airports in the Asia-Pacific region.
“We are not against an increase but of this magnitude cramped into a short period is not acceptable. The latest move will make Delhi more expensive than Osaka, Tokyo and Sydney which are airports in countries with higher wages and spending power. The move will not help in making Delhi a hub for airlines,” Mr De Man told Business Line . Emphasising that Air France-KLM combine was not withdrawing from Delhi, the airline official did indicate that the combine will “re-evaluate operations” into India.
Extreme concern
Expressing “extreme concern” about the “unreasonable” burdening of passengers and airline with the increase, the President, IndiGo Airlines, Mr Aditya Ghosh, said “While we evaluate our next steps, we feel that such an increase is against the interests of common consumers.”
IATA has, however, welcomed AERA's decision to simultaneously commission an independent study in the asset allocation practice adopted by Delhi airport, where currently 89.25 per cent of the assets are allocated towards aeronautical activities.
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