Challenging private airport operators’ claim that landing and parking charges at Indian airports are the lowest, the International Air
Transport Association (IATA) said the country’s two busiest airports, Delhi and Mumbai, are among the world’s most expensive.
Hyderabad and Bangalore airports, meanwhile, levy 20-30% higher charges compared to similar capacity airports such as Geneva and Colombo (which handle 2-15 million passengers annually), according to the global apex airline industry body.
Domestic airlines such as Kingfisher and Jet Airways are demanding a reduction in airport charges as individual operators unilaterally fix fees for landing, parking and navigational services. Airport charges contribute 6-7% of the total operating cost of airlines.
Private airport operators, led by GMR and GVK groups, recently published a survey claiming that charges at Indian airports were the lowest. As per the Association of Private Airports Operators (APAO), fees at Delhi and Mumbai airports are 16% cheaper than Toronto airport, which has similar capacity. “Even airports in Bangkok, Singapore and Beijing had higher airport charges than Mumbai,” it said in a report.
Refuting their claim, a Kingfisher Airlines official said on condition of anonymity: “While in some cases airport charges (in India) could be lower compared to other airports in the world, but one must also compare their efficiency and the services offered by them. At most foreign airports, an airline saves fuel due to efficient operations. There you do not have to burn fuel for half-an-hour to land.”
Aircraft are forced to hover over Delhi and Mumbai airports due to congestion on ground. In several cases aircraft have to go around for half-an-hour or more before touching down. Air India, for instance, burnt jet fuel worth Rs 125 crore in the past two years due to air traffic congestion.
The domestic airline industry, which has accumulated losses of about Rs 10,000 crore in 2008-09, recently threatened to suspend services due to high operational costs. Airline operators have asked for the government’s intervention in rationalising airport charges and high sales tax on aviation turbine fuel.
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