The Delhi International Airport Pvt. Ltd (DIAL), which runs the Indira Gandhi International Airport in New Delhi, will end up making a net loss Rs 900 crore for the current financial year, nearly double its net loss last year, even as it plans to increase airport charges by at least 334 per cent. Sidharath Kapur, Chief Financial Officer, DIAL, said that since 2000, the airport tariff has increased by just 10 per cent, while the consumer price index has risen 200 per cent.
The Delhi airport will continue to make losses even if it gets a 334 per cent hike on charges, he said. It can make a profit if it goes for a 774 per cent increase in tariff, its original demand. DIAL has reported a net loss of Rs 228 crore for the quarter ended 31 December against a Rs 164 crore loss for the same quarter a year ago. Analysts, however, say DIAL can post a profit next fiscal if the 334 per cent tariff hike proposal is approved. DIAL demanded a 774 per cent increase in airport charges whereas the Airport Economic Regulatory Authority of India (AERA) has proposed a hike of 334 per cent. Malvyn Tan, Assistant Director, International Air Transport Association, said that even with a 334 per cent increase in present charges, as proposed by AERA, fees at Delhi airport will become the highest in the world. On 12 January, Malaysian low-fare carrier AirAsia X Sdn Bhd said it will withdraw its services to India from its Kuala Lumpur hub by March-end, citing a steep increase in costs at the Delhi and Mumbai airports, according to a report by Mint. According to the minutes of an AERA meeting posted on its website, representatives of Deutsche Lufthansa AG, Air France-KLM, British Airways Plc, Emirates and Singapore Airlines opposed the proposed increase. The website also quoted Kamal Hingorani, Senior Vice-President, SpiceJet Ltd, saying the “proposed increase may lead to even closure of some airlines”. DIAL’s Kapur said the proposal of 334 per cent may look large, but airlines pay a small percentage as landing and parking charges. “They pay only one to two per cent as airport cost out of the total cost. The airlines are passing on other charges to passengers,” Kapur said. According to him, the increase in landing and parking charges per passenger would be approximately Rs 70 for airlines.
Click here to see the original article>The Delhi airport will continue to make losses even if it gets a 334 per cent hike on charges, he said. It can make a profit if it goes for a 774 per cent increase in tariff, its original demand. DIAL has reported a net loss of Rs 228 crore for the quarter ended 31 December against a Rs 164 crore loss for the same quarter a year ago. Analysts, however, say DIAL can post a profit next fiscal if the 334 per cent tariff hike proposal is approved. DIAL demanded a 774 per cent increase in airport charges whereas the Airport Economic Regulatory Authority of India (AERA) has proposed a hike of 334 per cent. Malvyn Tan, Assistant Director, International Air Transport Association, said that even with a 334 per cent increase in present charges, as proposed by AERA, fees at Delhi airport will become the highest in the world. On 12 January, Malaysian low-fare carrier AirAsia X Sdn Bhd said it will withdraw its services to India from its Kuala Lumpur hub by March-end, citing a steep increase in costs at the Delhi and Mumbai airports, according to a report by Mint. According to the minutes of an AERA meeting posted on its website, representatives of Deutsche Lufthansa AG, Air France-KLM, British Airways Plc, Emirates and Singapore Airlines opposed the proposed increase. The website also quoted Kamal Hingorani, Senior Vice-President, SpiceJet Ltd, saying the “proposed increase may lead to even closure of some airlines”. DIAL’s Kapur said the proposal of 334 per cent may look large, but airlines pay a small percentage as landing and parking charges. “They pay only one to two per cent as airport cost out of the total cost. The airlines are passing on other charges to passengers,” Kapur said. According to him, the increase in landing and parking charges per passenger would be approximately Rs 70 for airlines.