In a firm statement, Dreamfolks Services CEO and Chairperson Liberatha Peter Kallat has publicly criticised two major Indian airport operators for using pressuring tactics to disrupt her company’s business. While speaking to CNBC-TV 18, Kallat stated that the airport operators who recently launched competing lounge access services have put pressure on banks to cut ties with Dreamfolks.
“The pressure…is to tell the clients that if they do not sign up with them or do business with them directly, they would actually stop their cardholder access to their airports,’’ Kallat said.
Her statement has been given recent news that lounge access programs for ICICI Bank and Axis Bank have been discontinued, despite Dreamfolks still having valid contracts with both. Kallat mentioned that only certain card types have migrated to competitor platforms, whereas others are still active.
Kallat further explained that Dreamfolks has been facing increasing pressure for almost two years but has avoided going public till now.
Kallat says that she ‘tried to be diplomatic..’
“I always tried to be diplomatic…but I felt it was high time to come out and share the facts,” she stated, adding, “Fair competition should be technology and services -not threats.”
Despite the tension, Kallat has excluded the option of seeking regulatory intervention, citing a lack of confidence in instructional support. “We are very small player…and I don’t feel any authority would be supportive for us,” she told CNBC.
Dreamfolk shares were down by 3.7% at noon on July 2, after the public disclosure.
Kallat also gave assurance to the shareholders that Dreamfolks is not dependent entirely on airport lounges. “We are already present in other verticals-railways, highways, lifestyle services like golf-and those are not controlled by monopolistic players,” she stated.
When asked about the chances of acquisitions or exits, Kallat firmly dismissed any intention to sell. “We want to grow globally. Acquisition is not on the agenda.”
Kallat also shared a message for the investors, “We have built this industry once-we’ll build it again.”