Reeling under the impact of high operational costs, primarily due to higher jet fuel prices and airport charges, the country’s top two budget carriers have sought the government’s approval to shift their international operations to the domestic terminal from the existing T3 in New Delhi.
“The ministry has received the proposals from IndiGo and SpiceJet, requesting to allow them operate from the 1D terminal instead of the T3 on account of higher costs of operations,” a senior aviation ministry official said.
While IndiGo with 23.9% marketshare was the largest no-frills carrier in May, SpiceJet’s share was 18.5% in the overall pie in the month, making it the third-largest domestic carrier.
The government is, however, yet to take a call on their request, the official said without divulging further details.
Fuel prices came down to the tune of 25% in dollar terms. However, a steeper fall in the rupee has offset the resultant benefit for airlines.
Apart from this, the airport development fee (ADF) at the Delhi airport has skyrocketed by a massive 346% since last month.
At present, Air India, Jet Airways and Kingfisher Airlines operate from Delhi airport’s T3, while SpiceJet, IndiGo and GoAir fly from the old domestic terminal called 1D.
Air India, Jet and KFA also run their domestic services from the new T3.