The International Air Transport Association on Tuesday criticised the increase in airport development charges imposed by Mumbai and New Delhi, saying the burden on the already beleaguered global airline industry is a 'wake up call' for the Indian government.
"We cannot accept the increases. It is unconceivable, Prime Minister Manmohan Singh has to take an urgent look at the issue," a visibly rattled IATA CEO Giovanni Bersignani said in Kuala Lumpur.
The association had listed the Delhi and Mumbai airports in its IATA Wall of Shame for their 207 per cent increase in airport costs on Monday.
Both the cities have increased charges by 10 per cent in early 2009 and introduced new airport development fees. For Delhi it was equivalent to a 137 per cent increase in charges while in Mumbai this was a 278 per cent increase -- 207 per cent being the average of the two figures.
"The situation is at high risk, it is a wake up call for the Indian government, it has to understand the plight of the aviation industry and take full responsibility of the situation," Bersignani told Indian reporters on the sidelines of the 65th AGM of IATA which concluded on Tuesday.
He noted that Asia Pacific region which had being the star of last year was now the biggest problem in the aviation industry with losses for next year projected at $3.3 billion of the total $9 billion worldwide.
Appreciating the Chinese government's quick action to boost domestic airline industry with special packages, Bersignani said he was very disappointed with the Indian government.
"Instead of special packages aimed at helping the airline industry, New Delhi had instead penalised the airlines with the phenomenally high airport development costs."
Admitting that infrastructure was vital for a country's growth, the IATA chief felt that it could not be at the cost of passengers who had to pay more for something which would happen in 10 years. "There was no consultation with the airline industry. There is an urgent need to have a regulator in place and it should preferably be a respected economist and not a bureaucrat," he felt.
"There is urgent need for transparency in India. We are paying more to land and use the airports," he said adding that coordination in policies was required.
The prime minister has to understand that the airline industry is essential for the country, this is a wake up call for the government, he said.
Bersignani said, "India has been a great story, don't let it down."