NEW DELHI: International Air Transport Association(IATA), the global association that represents airlines, has accused cash-strapped Air Indiaof distorting the market as it receives financial support from the government in spite of pricing tickets below cost.
Giving the example of the turnaround of Japan Airlines, IATA Director General and CEO Tony Tylersaid, "Government aid must not be a blank cheque. Clear accountabilities and timelines for management, employees (including the pilots) and everybody involved have to be set and transparent disclosure is needed to measure progress."
Giving the example of the turnaround of Japan Airlines, IATA Director General and CEO Tony Tylersaid, "Government aid must not be a blank cheque. Clear accountabilities and timelines for management, employees (including the pilots) and everybody involved have to be set and transparent disclosure is needed to measure progress."
Blaming high costs, especially rising airport charges, for squeezing the lifeblood out of the airline sector, Tyler said the recent 346% revision in tariffs at the Delhi airport is going to impact travel demand by 5-7%.
"A couple of airlines have pulled out and a few more will do the same. Raising charges by such a magnitude dampens growth, as the airport doesn't get the commercial revenues they were looking for," Tyler said.
He also suggested that the government could plough back the 46% revenue share it is earning from the Delhi airport in order to lower passenger charges. According to IATA estimates, costs for airlines this year will go up by $400 million due to the high airport charges.
"A new airport is needed in Mumbai or economic opportunities will be lost....The 12th Five Year Plan projects 274 million passengers flying in 2017. A 'super-fast track' way forward may have to be developed to meet that expectation," said Tyler.
http://articles.economictimes.indiatimes.com/2012-07-26/news/32869737_1_tony-tyler-airport-charges-delhi-airport
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