British Airways will revisit India strategy

British Airways on Wednesday said an increase in airport charges at the Indira Gandhi International (IGI) airport in the national capital has forced it to revisit its India strategy. “The aviation industry is going through a difficult phase and after the hike in airport charges it has become more difficult to operate at the Delhi airport. Currently, the charges are too high,” Christopher Fordyce, regional commercial manager, South Asia, said.

“Keeping the hike in charges in mind, we are revisiting our strategy and assessing route profitability,” Fordyce said.

Following the IGI move, airport charges may be hiked in other domestic airports he said, adding this would be detrimental to the growth of the airline sector.

“While airport development is important, price escalation should also be taken into account as passengers will be affected due to high airport charges,” Fordyce said. However, he said that airline did not plan to cut down on flight operations to and from Delhi.

British Airways is not the only major international player to have shown displeasure against the steep hike in airport charges.

International Air Transport Association (IATA) director general and chief executive Tony Tyler had earlier said that India’s airports are becoming increasingly expensive.

The Federation of Indian Airlines, too, had protested the hike, stating that it will lead to a decline in demand of Delhi airport, fall in tourist arrivals and have an adverse impact on trade and tourism.

On April 24, 2012, the Airports Economic Regulatory Authority had permitted the Delhi International Airport Ltd (DIAL) to increase airport charges at IGI Airport such as landing, parking, housing, fuel throughput and aeronautical charges by 345% for next two years.