Global airlines express concern over proposed hike in user development fee, landing charges

Chennai:

International airlines expressed concern over proposed increase in user development fee for passengers and landing charges for international airlines at Chennai airport.

Speaking to reporters, Cathay Pacific general manager South Asia, Middle East and Africa Tom Wright said that such decisions by Airport Authority of India would affect the aviation sector, which is reeling under the impact of economic downturn in United States and Europe.

He said the charges are too high in India. International airlines have expressed their concern to the aviation ministry in this regard. The AAI has proposed to increase the international landing charges as well as the user development fee in the wake of modernisation and expansion of the Chennai airport, comprising domestic and international terminal buildings, elevated corridor and allied works including consultancy and extension of runway.

Ruling out any acquisitions in the Indian sector, Wright said that there is a tremendous potential in Indian aviation sector and Chennai could try to be one of the global aviation hub. He said Cathay Pacific has increased its frequencies of eight flights a week to 48 flights a week. He said Cathay Pacific’s sister airline Dragon Air is catering to Bangalore and Kolkata while Cathay Pacific caters to Chennai, Delhi and Mumbai. He said all the sector has 80 per cent occupancy and is quite happy with the numbers.

Interestingly, Wright says the strength of Cathay Pacific is also its cargo which contributes 50 per cent of its revenue. He says he is keenly awaiting the opening of new cargo terminal in Chennai airport.

To a query on the import of beagle pups from China through Cathay Pacific for conducting lab tests in India, Wright expressed concern and said that the airlines was misled by the importer.

“We never thought it was for conducting experiment. We have conducted an investigation and found that it was the importer who misled the airline. It is an unfortunate incident which violated our guidelines,” he said.