SpiceJet delays delivery of three Bombardier aircraft

New Delhi: The decision of Delhi International Airport Ltd (DIAL) to raise airport and user development charges steeply has found its first casualty in low-cost carrier SpiceJet, which has postponed the delivery of three of the seven Bombardier Q 400 aircraft it was to receive.
The airline had planned to make Delhi its hub for the three aircraft, from where it would fly various destinations in the North, but it says the raised charges made it change its mind.
To a question on how the increase in airport charges had impacted the airline, its CEO, Neil Mills, says: “We were going to receive all seven Bombardier aircraft soon, but to begin with, we have taken only four for Delhi and want to see how it goes. The earlier plan was to take the risk of fielding the seven machines from the Delhi airport. But now, with the user development fees (UDF) as a proportion of tariff becoming so high in the short-haul sector, there is too much risk sitting on the company.”
On the other hand, the GMR group-run DIAL, shot back saying the raised charges were a fraction of their fares. GMR group CFO (Airports) Sidharath Kapur said: “SpiceJet is a valued customer; but, if they don’t want to fly more aircraft from Delhi, it’s their call. The new rates are for all.”
12/09/12 Surajeet Das Gupta & Disha Kanwar/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Foreign Sep 2012, spicejet Sep 2012