Page 8 - AAA MAY-JUNE 2012 Online Magazine

NEWS

Delhi cost rockets
IATA has voiced its strong objections to
India allows fuel import the recent 346% hike in aeronautical
charges by the Delhi International
With aviation turbine fuel (ATF) taxed heavily, making India one of the most expensive Airport Ltd (DIAL) approved by
countries in the world, airlines have been given permission by the Director General the Airports Economic Regulatory
of Foreign Trade (DGFT), under the Ministry of Commerce and Industry to import Authority of India (AERA), a body
ATF directly from the international market. SpiceJet, IndiGo and Kingfisher have that regulates tariff for aeronautical
applied for approval for import. SpiceJet says it is negotiating with leading oil services at major airports in India.
marketing companies and is hopeful to start importing fuel in due course. AAA The revised tariff, which charge a
learns discussions have already started with some companies who may agree to take Landing and Parking fee for aircraft
care of logistics of import and sale of ATF through their present facilities. It is likely and a User Development Fee (UDF)
the other oil companies will not stand and watch their business dry out. So, now the for passengers, was applicable from
cost-cutting war will be on the apron front! “Importing fuel from overseas markets at May 15. For departing international
comparatively lower price would help us to considerably bring down our operational passengers the tariff is between Rs
cost,” Neil Mills, CEO at SpiceJet said. 534 and 1068, and for arriving, from
Rs 436 to 881. Domestic departure
Aussie cuts passengers will now pay Rs 231 to 462
per head, while arriving passengers
The Qantas Group will reduce capital operations in Australia “has concluded” will pay between Rs 195 and 391.
expenditure (capex) in 2012/13 by a said Joyce, with an announcement due “The increase approved by AERA is
further US$400 million in addition to the soon. The Australian Licensed Aircraft extremely disappointing. This makes
US$500 million announced in February, Engineers’ Association says as many Delhi the world’s most expensive
as it pursues competitiveness in all as 1,250 Qantas engineers could lose airport. It will also have a larger impact
business areas, it said in a statement. their jobs when the airline makes a on India and its economy, with an
Capex in 2012/13 will total US$1.9 final announcement on restructuring. expected 5 to 8% decrease in demand
billion compared with the US$2.3 billion “We are focused on making changes at Delhi as a result of higher costs,
previously planned, and in 2013/14 that will increase productivity and a fall in tourist arrivals and further
is slated to be US$1.9 billion or less. competitiveness in a range of areas, damage to local and international
“Our priorities remain to build on our including modernising and consolidating airline connectivity. This is a big step
strong domestic business, enhance our catering operations, streamlining backwards for Delhi’s ambition to be an
Qantas Frequent Flyer, turn around heavy maintenance and introducing new aviation hub,” says Albert Tjoeng, IATA’s
Qantas International and grow Jetstar engineering processes,” noted Joyce. spokesman for Asia-Pacific. However
in Asia,” said Qantas Chief Executive “We are acting decisively now to position DIAL says charges were stagnant since
Officer Alan Joyce. Consultation on the ourselves for strong, sustainable growth 2001. ”The revision of charges is much
future of Qantas’ heavy maintenance over the long term.” below our expectations.”

8 ASIAN AIRLINES & AIRPORTS MAY / JUNE 2012 WWW.ASIANAIRLINES-AIRPORTS.COM