“Delhi is definitely one of the most expensive airports in the world,” said Giorgio De Roni, CEO, GoAir, on Tuesday.
Speaking to The Hindu on the sidelines of a media conference, organised to announce the airlines’ launch of a flight connecting Bangalore and Goa, Mr. Roni said, “There is no logic in the airport operator increasing airport charges for domestic carriers by 334 per cent in one year.” “The operator’s request was marginally higher — 700 per cent,” he observed sarcastically.
“High airport charges are a serious problem,” said Mr. Roni. Airports such as Pune had increased charges by as much as 35 per cent with barely a day’s notice to the airlines, he said.
“Delhi (airport) is a problem. It is brand new and extremely nice, but the cost is extremely high.” “I understand that some foreign airlines are postponing increasing their capacity in India because they find the airport charges at Delhi too high,” Mr. Roni said.
Although many airports were likely to increase royalties, fees and other charges in the near future, the increase at Delhi airport had been “the most critical,” Mr. Roni said. Drawing on his experience of 25 years with the international aviation industry, Mr. Roni, said airports in Ireland and the Netherlands, which increased fees, experienced declining revenues as a result. Several airlines, he pointed out, decided not to operate out of airports that hiked airport fees sharply, he said.
“I am not so sure that an increase in fees charged by airport operators results in higher revenues,” Mr. Roni said. Observing that domestic air travel had fallen significantly during June and July, he wondered whether the increase in airport charges would have compensated for the decline in volumes. “The increase in airport charges would cost us Rs.50-60 crore more,” Mr. Roni said.
Mr. Roni said the Federation of Indian Airlines had raised the issue of high airport charges with the Ministry of Civil Aviation, and the Airports Economic Regulatory Authority of India (AERA). The Delhi International Airport Ltd., which is controlled by the GMR Group, was last week indicted on several counts by the Comptroller and Auditor General for causing losses to the public exchequer.
“The funny thing is that in Delhi we not only pay for departing flights but also for arrivals,” Mr. Roni said. “I do not know another airport in the world that does this,” he said.
