Operator refutes IATA's ‘most expensive' tag for Delhi airport

Global lobby's allegation not reflection of actual state of affairs, says GMR Group CFO

New Delhi, June 15:

The Delhi International Airport Ltd (DIAL) has refuted the International Air Transport Association's (IATA's) allegation that Delhi Airport is the most expensive in the world. DIAL is a part of GMR group which also operates the Hyderabad airport.

The Chief Financial Officer (Airports) of GMR Group, Mr Sidharath Kapur, in a letter to the Director-General and CEO of IATA, Mr Tony Tyler, said: “We do not agree with the statement (Delhi as the most expensive airport) as it does not reflect the actual state of affairs.”

IATA sent an email to the Ministry of Civil Aviation which was forwarded to DIAL. The travel body compared airport charges of various international airports. Subsequently, various statements made by IATA in respect of revision of airport charges by the Airport Economic Regulatory Authority (AERA) mentioned Delhi as the most expensive airport in the world.

According to DIAL, barring a nominal 10 per cent hike in 2009, the airport charges in India have not increased in the last 10 years.

In the Indian context, the charges have been uniform across airports and the same is followed at IGI airport as well. The airport charges before revision were much lower than those of other international airports, it explained.

Development fee

The airport operator, quoting an independent analysis by aviation consultant Leigh Fisher, claimed that for an aggregate total passenger traffic at around 90 per cent (69 per cent domestic and 20 per cent international), the Delhi Airport is not amongst the expensive airports even after considering Airport Development Fee (ADF).

It also said that even with ADF, which is strictly not an aeronautical charge but a pre-funding for a limited period of time, Delhi airport charges are the highest only in the long-haul international segment.

It also said that the pricing structure proposed by DIAL and approved by AERA is aimed at keeping domestic charges low. This would, therefore, result in a higher charge on the long-haul international segment.

Considering high cost of tickets in this segment, the proportionate impact of the charges vis-à-vis the ticket priceswould be very low, it explained.

http://www.thehindubusinessline.com/todays-paper/tp-economy/article3533820.ece