FDI won't come to Indian aviation till high costs prevail: IATA chief Tony Tyler

Comments 0
Foreign airlines would not pick up stake in cash-strapped Indian carriers till steps are taken to stem the high costs of aviation operations in India, IATA chief Tony Tyler has said. (Reuters) Foreign airlines would not pick up stake in cash-strapped Indian carriers till steps are taken to stem the high costs of aviation operations in India, IATA chief Tony Tyler has said. (Reuters)
SummaryI don't think allowing foreign airlines to invest in India is a game changer: IATA chief

raising charges for the airlines.

"We are very against this whole ADF. Of course, we do welcome the fact that the Civil Aviation Ministry is getting involved in this area and instructing Airports Authority of India not to seek ADF in Chennai and Kolkata and also to reduce ADF in Mumbai and Delhi.

"But we are concerned that it will go from one hand to the other. The revenue shortfall from one will be somehow offset by the other by increasing airline charges somewhere else. So we will have to make sure that does not happen."

Tyler said the high airport costs were impacting domestic air traffic which had declined in the recent past.

"The Indian airport costs, let us not kid ourselves, remain a big problem. .... Domestic traffic has been in decline recently. High airport costs have to have something to do with it," he said.

Though this was not the only reason for a declining air traffic, "if you put the cost of operating for the airlines it is going to reduce the amount of operations they are going to do. They are not going to be able to put fares in the market that will keep people flying," the IATA chief said.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...