New Delhi: Jolted by a three-fold hike in aeronautical tariff at the IGI Airport here, India’s airline operators warned this will sound the death knell for some of the carriers reeling under severe financial stress.
Claiming that the 345 per cent hike will make Indira Gandhi International Airport (IGIA) the “most expensive” airport in the world, the airlines have knocked at the doors of the Delhi High Court seeking legal intervention.
The airlines under the banner of Federation of Indian Airlines (FIA) contended the hike will not merely hit their operations but also adversely affect the Indian economy. Their petition is expected to come up in the high court on July 10.
They have challenged the April 24 order of Airport Economic Regulatory Authority (AERA) for a hike in the aeronautical tariff, also contending it is unlawful as the tariff has been raised without following the basic norms of the regulated sectors like independent audit prudence check.
The AERA order permits GMR-promoted Delhi International Airport Limited (DIAL) to increase the aeronautical tariff.
The increase comprises of various airport charges like those for landing, parking, housing and ground handling etc, by a staggering 345 per cent.
In their petition, the airlines submitted that the hike would prove to be a death knell for many airlines. “Some airlines may not be able to survive and would be under serious financial stress,” the petition said.
“The decision will make it very difficult for airlines to recover such high tariff particularly in the present-day scenario when economic and financial situation of airlines are bad,” the FIA said.
The airlines said that the hike in aeronautical tariff will not merely jeopardise the airport operations but will also have an adverse impact on India and its economy.
A DIAL spokesperson told PTI, “DIAL has approached the AERA Appellate Tribunal against AERA’s April 24 order.
Although the airlines have raised several issues before the high court, at this stage we are unable to comment, as the matter is sub-judice.”
The DIAL has demanded over 700 per cent hike in the tariff.
Last month in a letter to International Air Transport Association (IATA), which represents all major airlines, DIAL had defended its hike in tariff on the ground that it had not been increased for over a decade.
Noting that the hike will make IGI airport as the “most expensive” airport in the world, the FIA said the escalation of tariff will lead to decline in demand for the IGI airport and that it will result in fall in tourist arrival, consequently impacting the trade and tourism industry.
This step would damage local and international airlines connectivity, the FIA added.
Opposing the airport regulator’s decision, the petition said, “It has led to a situation where the order of the airport regulator, despite being prima facie illegal, the FIA members will be forced to make unlawful payment.”
DIAL, in its letter, has said, “The airport charges of Indian airports were not increased during the last ten years except by nominal 10 per cent in the year 2009.”
“In Indian context, the airport charges have been uniform across the airports in the country and the same were followed at IGI Airport as well. “The airport charges before revision have been historically at very low level when compared to the other international airports,” DIAl has said.
The airport operator also rejected the allegation that the IGI airport would be an expensive airport in the world. They added that even after including the airport development fee, the airport is not ranked among the most expensive airports.
“The domestic charges at IGI Airport post revision continue to be the lowest among the airport operators in the world,” DIAL has said. (PTI)