German airline Lufthansa has said that it would not pick up equity in any airlines in India even though the Government has opened up the sector for FDI.
Lufthansa’s head of corporate communications for Asia Pacific, Frank Puttmann said, while India continues to be the top market for the airline, there are no plans to pick up equity. “At this moment, our strategy is to build up a strong presence in India. India is the top market for us worldwide. It is a strong message for the market,” he said.
Puttmann said airport companies in India should work along with the airlines because they are partners in their business. Hence, the decision to impose heavy airport charges would be counterproductive. He said the airports regulator’s decision to allow 346 per cent hike in airport charges by DIAL which runs the Delhi airport was detrimental to the growth of the passenger traffic. “We can understand there is a cost to be paid for better infrastructure which can be spread across over a period of time. But to start charging such a heavy fee from day one is wrong,” Puttman said.
Lufthansa director for South Asia, Axel Hilgers said his airline was willing to get to the negotiating table if the airport says that the higher development fee is for a certain period.