IATA criticism over rise in Delhi airport charges irks GMR

The recent criticism by the International Air Transport Association (IATA) over steep increase in airport charges at Delhi has got the goat of GMR, which leads the consortium operating the airport. In a letter addressed to IATA, GMR’s Sidharath Kapur has pointed out that airport charges did not increase in the past 10 years, except by a nominal 10 percent in 2009 and charges for domestic passengers, even after the fee revision, continue to be the lowest among competitors across the globe.

Speaking in Beijing earlier this week, IATA CEO Tony Tyler had accused the Indian airport regulator of failing to protect public interest by clearing a steep 346 percent hike in Delhi airport charges, calling this “unacceptable”. He had also said that the aviation industry worldwide was on a “knife’s edge) and even a percent decline in bottomlines could hurt it terribly.

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But the same letter by Kapur acknowledges that the Delhi International Airport (DIAL) has become the costliest airport for international long haul travel among 26 of the world’s major airports. And it is the fourth most expensive for international short haul travel - in both instances, cost of travel also includes the Airport Development Fee (ADF).

International long haul accounts for just about 10 percent of the total traffic from DIAL and Kapur said it was incorrect to brand it the costliest airport in the world. He also pointed out that the charges include ADF, which is a non-aeronautical charge and levied for a limited period only. And for domestic travel, Delhi remains much lower in the pecking order of these 26 airports.

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The GMR group-led airport operator had demanded a 774 percent increase in airport charges and engaged consultancy firm LeighFisher India Pvt Ltd to examine how the rates compared with other top airports. The Airport Economic Regulatory Authority eventually approved an increase of 345 percent, effective 15 May, a move criticised by airline firms and passengers.