Hike of Delhi airport charges by 346% unreasonable, unacceptable: Lufthansa
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Calling the 346 per cent hike in Delhi airport charges by India' s airport regulator AERA as "unreasonable and unacceptable", German carrier Lufthansa has said that major international airlines are holding a crucial meeting in mid-August to discuss the issue.
Noting that over 10 international airlines operating out of India have filed a case in the Delhi High Court against the steep increase in airport charges, Axel Hilgers, Lufthansa's Director South Asia, said that the Delhi airport's operational cost is "too high."
"A normal increase according to inflation is okay, but this (the 346 per cet hike) is unreasonable and unacceptable," he said.
"We are not in agreement with the Indian government on the issue and are part of the High Court case. We are unhappy, that's why we filed the petition in July," Hilgers told PTI.
Asked whether Lufthansa will pull out of Delhi on the issue, he said "we can't withdraw from Delhi as it is an important route but at the moment we are paying the charges which are too expensive for us. Today it is Delhi, tomorrow it may be Mumbai where we could face this problem," he said.
"In mid-August, major international airlines are meeting and discussing the issue of increase in Delhi airport charges. We have to act quickly on this," Hilgers said, pointing out that IATA had also opposed the hike.
Earlier in June, IATA Director General and CEO Tony Tyler had slammed the hike in Delhi airport charges, saying that it was "clearly unacceptable".
He had noted that the Delhi International Airport Limited (DIAL) had to pay 46 per cent of its revenue to the government, which was neither in the interest of the airlines nor of the airport.
Hilgers said the Delhi airport was constructed to become an aviation hub but its operational cost is too high, forcing companies to look to other neighbouring hubs.
"We can't even think of increasing ticket price as we are in competition. We can't pass on our increased landing charges on our passengers," he said, adding that the customers are already paying ADF (Airport Development Fee) and airport security charges.
However, Hilgers described India as a "very important" market for Lufthansa. "India is one of the largest intercontinental markets globally.
It is the first market in Asia to receive our new business class product and the new B747-8 aircraft -- after the US the second market worldwide."
He said India is also "important for us as we provide mobility for the German industry and European travellers who are coming to India to invest and spend their holidays."
Asked whether the decision to deploy Boeing 747-8 on Delhi-Franfurt route was taken because of the Indian government's refusal to allow A-380 aircraft, Hilgers said "we are happy that we can fly Boeing 747-8 and we are totally focussed on this."
"We have eight fully employed A-380s and we have no plans now to push for their entry to India right now," he said.
Replying to a question on likely revenue increase from the Indian sector by introducing the new facilities like upgraded first and business class on the Frankfurt-Delhi route and other future routes in India, Hilgers said: Revenue increase in the current economic environment would be very ambitious.
"After all the market is characterised by huge overcapacities. Our investment is important to maintain our customer base and increase our profitability by reducing operational costs with the help of very fuel efficient new engines. This is good for our customers, our cash box and for the environment as well..."