IATA director general and CEO Tony Tyler urged (15-Mar-2012) the Ministry of Civil Aviation (MOCA) to intervene in the discussion of "unacceptable" proposed charge increases at Delhi International Airport. While noting that the new terminal and third runway have been a "much needed" capacity boost, Mr Tyler lamented: "[if] the 340% increase in charges over the next two years is implemented, it will make Delhi the most expensive airport in the world—and destroy its competitiveness. Given the broad economic implications that this would have it is important that the government takes immediate action. First, 340% is unacceptable. It would be a shock to the system that would ripple throughout the economy. The Ministry cannot stand by and let this happen. It must intervene with a broader context. This should take into consideration the long-term development of Indian aviation at its hubs. And if need be, the concession contracts, which at Delhi channel 46% of revenues to the Airports Authority of India, need to be re-thought with the aim of offsetting aeronautical charges. The solutions are readily available and there is no reason why the 340%, or any increase of this magnitude, should be allowed to go through". Mr Tyler also highlighted the need for capacity expansion in Mumbai. “Mumbai is bursting at the seams. The first phase was meant to open in 2014 but construction has not even begun. Land acquisition is not yet complete. We need a coordinated effort across all government ministries to facilitate success without further delay—as was achieved for the opening of Delhi’s new terminal", he said. [more - original PR]
IATA criticises 'unacceptable' charges at Delhi, notes need for capacity expansion at Mumbai
You may also be interested in the following articles...
Airports - subject as always to the vicarious uncertainty of airline fortunes
CAPA’s 2016 outlook was against a background of unusually high levels of profitability for airlines.
Northeast Asian airlines seek India connections to diversify away from SE Asia, China competition
Aviation has yet to define India’s role in the trans-Pacific growth story. Geography allows connections from North America to India via Europe, the Gulf and – more quietly – Northeast Asia. Northeast Asian airlines have a theoretical advantage linking India with the North American west coast. The challenge they face is fitting a square peg into a round hole.
The presence of Northeast Asian airlines is large in North America but small in India, while Southeast Asian airlines are small in North America but large in India. Cathay Pacific, and to a lesser extent All Nippon Airways, are in the strategic sweet spot, relatively. Growing China-India relations could result in Chinese airlines playing a larger role in this market. The different transit regions available mean that there is competition between partnerships and joint ventures. These pressures could grow as the Indian market continues expanding.