GVK flays IATA for classifying Delhi as ‘expensive’ airport

Thiruvananthapuram, June 23:

GVK Industries Vice-Chairman, Mr G.V. Sanjay Reddy, has criticised the International Air Transport Association (IATA) for classifying Delhi as the most expensive airport in the world.

VESTED INTERESTS

“Frankly, IATA is an industry body representing airlines. They have vested interests. They are there to put down airports, not promote them,” Mr Reddy told Business Line in a rarely candid interview here.

“I’m telling you this and you can write this also. IATA is being very unreasonable, and it’s not thinking in the interests of partnerships.

“Some of its statements are ridiculous, if not downright wrong as is in the case with respect to Delhi.

“They can say anything that they want as long as they get published. But the facts are not correct,” Mr Reddy.

WRONG COMPARISONS

Also Managing Director of the Mumbai International Airport Ltd, he recalled an earlier IATA report prior to privatisation rolled across in the sector in India.

In that it had said that India had the most expensive airports in the world. But it was when it came to drawing comparisons that IATA gave the game away.

Here, they could not look beyond Sri Lanka, Bhutan, Nepal, Bangladesh and Pakistan.

“So they can select anything they want, say anything they want, and still hope to get away with all,” Mr Reddy said.

“I know Delhi did not comment on the IATA remarks for a few days. But if it were to make such a comment about Mumbai, I would certainly refute them then and there.” In fact, one of our studies said that of the top 50 airports in the world, Mumbai was the 50th in terms of costs, Mr Reddy said.

‘Delhi costly in sectors’

“IATA’s stand on Delhi is ridiculously extreme and made merely because it knows it would get published without fail,” Mr Reddy said.

“Yes, I think Delhi is expensive in some sectors. I am not suggesting it is not. But who’s to blame?

“At the end of the day, these kind of issues must be raised when projects are bid out. It’s not as if it’s been done in an arbitrary manner now.

“We had a bid which was very hotly contested, the conditions of the bid are clearly known. We assumed that these were regulations we would play along with.

“Now, if you ask me, the regulator has not kept its end up with that agreement. There are many things which are grossly underpaying us. I’m sorry, but I’m a little aggressive when it comes to the issue of calling airports names (based on user charges),” Mr Reddy said.

http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3563577.ece