Delhi airport fee hike to push travel up 5-7%: IATA chief

Ashwini Phadnis New Delhi | Updated on July 25, 2012 Published on July 25, 2012

The Director General of International Air Transport Association, Mr Tony Tyler, has said that the 346 per cent increase in rates at Delhi Airport will add $400 million to airline cost.

Addressing a seminar in Delhi, Mr Tyler said the impact on travel will be 5-7 per cent.

He also called for allowing foreign airlines to acquire stake in domestic airline. "If critical problems" he said then foreign airlines will not line up to invest in airlines in India.

Mr Tyler said he sees aviation as an enabler of growth, creator of jobs including skilled jobs rather then an activity to be taxed.

"Taxes (on aviation sector) need to go down, supply side issues need to be looked and adequate infrastructure needs to be created so that aviation can play role it can".

The Chairman of Jet Airways, Mr Naresh Goyal, said he supports Government's move to allow foreign direct investment in domestic aviation. "We support all Government policies," Mr Goyal said on Wednesday.

He also said airfares in India are low as compared to other countries.

"On sectors more than 2,000 km, when compared to India fares in China are higher by 87 per cent, the US are higher by 119 per cent, in Canada fares are higher by 162 per cent and in Australia fares are higher by 182 per cent," Mr Goyal said.

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Published on July 25, 2012
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