India’s rising airport charges, increased Indian fuel costs and pressure from travel agents threatening to boycott ticket sales are pressuring international airlines to cut services to the country.
Coupled with a 20 per cent fall in inbound premium passenger travel, international airlines including Virgin Atlantic, Sri Lankan Airlines, Austrian, Delta, KLM, Syrian, Aeroflot, All Nippon Airways, Singapore Airlines, Lufthansa and Finnair have withdraw over 100 flights in the last six months.
“It is now difficult to do business in India. Our margins have been hit, while our costs have increased,” said Marnix Fruitema, KLM’s senior vice-president India and Asia-Pacific: “Our load factors in India range in the 80s and our break-even loads are hovering around 90s.”
He also said other countries’ airports have cut airport charges, whereas Indian airports have increased theirs.
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April 20, 2009 at 6:03 am