Sunday, December 23, 2012

‘FDI in domestic airlines will not solve Indian aviation issues’


After regaling the global media with songs over a traditional European meal, the newly appointed Director General of the International Air Transport Association (IATA), Tony Tyler took time off to speak to the Business Line on issues connected with Indian aviation in his office in Geneva.
The Indian Government is looking to lower Airport Development Fee (ADF) but the period of levy will increase. What are IATA’s views on this?
We are very much against this whole airport development fee. We do welcome the fact that the Ministry of Civil Aviation is getting involved in this area and instructing the Airports Authority of India not to seek ADF in Chennai and Kolkata and also to reduce ADF in Mumbai and Delhi.
These are significant steps for reducing the cost for passengers in Delhi and Mumbai. But we are concerned that it will go from one hand into the other. The revenue shortfall from one will somehow be offset by the other by increasing airline charges somewhere else. So, we will have to make sure that does not happen. The Ministry has listened to the industry but we wish it would listen a bit more.
23/12/12 Ashwini Phadnis/Business Line
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