Delhi airport charges: IATA slams regulator

The Indian airport regulator, the Airports Economic Regulatory Authority (AERA), had failed to protect “public interest” by clearing a steep 346% hike in Delhi airport charges, which is “unacceptable”, the International Air Transport Association (IATA) has said. Tushar Srivastava reports.

The Indian airport regulator, the Airports Economic Regulatory Authority (AERA), had failed to protect “public interest” by clearing a steep 346% hike in Delhi airport charges, which is “unacceptable”, the International Air Transport Association (IATA) has said.

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India came under sharp focus at the annual general meeting of the association as IATA director general and CEO Tony Tyler, critical of “less enlightened governments”, said the Navi Mumbai airport will not open as scheduled in 2014 as the construction had not even started.

"The regulator in South Africa allowed a 161% increase in airport charges and a 70% increase for air navigation fees over the period 2010-15. This was outdone by the Indian regulator which allowed a 346% increase at Delhi — making it among the world’s most expensive airports," Tyler said. "Both regulators followed prescribed guidelines, but failed to protect the public interest."

“The industry’s profitability is balancing on a knife edge. If the bottom line worsens by even the equivalent of just 1% of revenue, our $3 billion profit very quickly becomes a $3 billion loss,” he said.

(The reporter’s travel and stay was arranged by IATA)