Business Daily from THE HINDU group of publications
Sunday, Sep 23, 2007
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Business Daily from THE HINDU group of publications Sunday, Sep 23, 2007 ePaper |
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Airlines Logistics - Infrastructure Industry & Economy - Events ‘Infrastructure gaps cost airlines $80 m a year’
Aviation turbine fuel has a major impact as it comprises 35-40 per cent of the operating cost 
Mr Saroj Datta Our Bureau Mumbai, Sept. 22 The already bleeding Indian airline industry suffers further due to the lack of infrastructure at airports. The Executive Director of Jet Airways, Mr Saroj Datta, said, “Gaps in infrastructure lead to 5-10 per cent more flying time for aircraft which means a cost of $80 million per annum to the airlines.” For Jet Airways alone, the cost is close to $25 million per annum, he added. Mr Datta was speaking at a function to mark the 103rd birth anniversary of J.R.D. Tata, India’s pioneer industrialist often referred to as the father of Indian aviation. Referring to a report from the Centre for Asia Pacific Aviation (CAPA), Mr Datta said losses for the industry in fiscal 2007 were in the range of $500 million and the trend is likely to continue in the 2008 fiscal as well. Among other costs burdening Indian carriers, aviation turbine fuel (ATF) has a major impact. ATF charges, comprising 35-40 per cent of the operating cost for airlines, are much higher when compared to other countries, he said. “The cost of ATF in Delhi is $755 and in Mumbai is $780, while in Singapore or Dubai it is $455 and $497 respectively,” he said. Highlighting challenges faced by the aviation industry in India, Mr Datta pointed towards the pressure on full-service carriers to reduce fares to be at par with no-frills carriers, shortage of trained personnel, and non-availability of secondary airports. However, he foresees growth opportunities in air cargo operations, maintenance and repair apart from the ground handling business. ATF: Airlines yet to decide on raising fares Airline fuel surcharge may rise due to hike in ATF prices Airport modernisation — Thrust to growth of air travel More Stories on : Airlines | Infrastructure | Events
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