Airlines oppose proposed rise in Delhi airport fees

Leading international air carriers say they’d reconsider expansion plans here if the airport charges at Delhi are increased, as proposed, by 280 per cent. Three of these made this point at a meeting convened on the issue by the Airports Economic Regulatory Authority (AERA).

“All the airlines present at the consultation meeting said the proposed charges are too high and it is not the right time to increase charges. British Airways, Air France-KLM and Lufthansa said they’d have to rethink their plans if the charges are increased by this much,” said an official present in the meeting.

Lufthansa’s South Asia director, Axel Hilgers, said the proposed multi-fold increase of landing charges at Delhi’s Indira Gandhi International Airport was particularly counterproductive, “Flight traffic would only be diverted away from India and its new international hub at Delhi, for the benefit of competing hubs in the region,” he said.

 

Owing to high airport fees in the country, AirAsiaX, long-haul subsidiary of low-cost carrier AirAsia, recently said it was discontinuing flights out of Delhi and Mumbai airports. And, Air Asia said it was discontinuing flights out of Hyderabad owing to the high User Development Fee.

The airlines said the proposed increase would make Delhi more expensive than Japanese airports, which have one of the highest charges in the world, the official added. “The proposed increase will impact its (Delhi’s) prospects of becoming a global airline hub,” said Tom Wright, regional general manager, Cathay Pacific.

Delhi International Airport Ltd (DIAL), the airport operator of Delhi airport, had applied for a 774 per cent rise in such charges AERA, however, proposed a rise of 280 per cent. A dismayed DIAL said if its proposal wasn’t approved, it would not be able to make a profit in the next two financial years, with accumulated losses beyond. AERA said it had taken all costs into account.