Sunday, July 20, 2008

IndiGo, SpiceJet say no to Bangalore aerobridges

After cutting down on capacity and manpower, airlines are now trying to save on airport charges. This they are doing by sparingly using airport infrastructure on which additional charges are levied and using their own equipment at the airport.

For instance, low-cost carriers IndiGo and SpiceJet are not using the aerobridges at the new Bangalore greenfield airport, because the airport authorities levy an extra charge for using the aerobridges. Also, carriers like Air India do not use the aerobridges for smaller aircraft like ATRs.

Airline executives said the aerobridge charges at the Bangalore airport could range anywhere between Rs 4,500 and 8,000, depending on flight duration and aircraft type. The new airport has a total of 8 aerobridges. The old HAL airport, which had two aerobridges, did not levy any charge on usage of aerobridges.

"We do not use the aerobridges at the Bangalore airport, which is the only one in the country to currently levy any charge for aerobridge. As a cost-cutting measure, we prefer to use our own buses for ferrying the passengers to and from the aircraft," said a SpiceJet executive.

Agreed Bruce Ashby, CEO of Delhi based budget carrier IndiGo, which currently does all its groundhandling on its own, which includes ferrying passengers to the aircraft on their own vehicles.

"We have found it more cost-effective to do our own groundhandling. In fact, based on the rates quoted by Bangalore airport, it is more cost-effective in every area to self-handle," said Ashby.

Currently, the full-service carriers Air India, Jet Airways and Kingfisher and other LCCs JetLite and Simplifly Deccan use aerobridges, but an executive of one of the carriers said because of the extra charges, it is definitely costlier to use an aerobridge at the Bangalore airport.

"BIAL is the first to introduce usage-based cost. This also applies to airlines using the aerobridge facility. The option gives the airlines the flexibility to monitor its costs as well as service offerings to its passengers. Charges depend on type of aircraft and duration of usage," said BIAL CEO Albert Bunner.

Setting up an aerobridge costs around $750,000. The Delhi airport is also introducing this facility in its new terminals, but executives of Delhi International Airport Limited (DIAL), clarified that they were not mulling any extra charge for the use of the aerobridges.

Airlines have also opposed a similar charge for use of aerobridges, which was being mulled at the Hyderabad greenfield airport.

The Hyderabad airport currently levies an overall charge for the usage of airport infrastructure, called the common infrastructure charges (CIC).

The current charges, which cover usage of aerobridges, common user terminal equipment (CUTE) and inline baggage systems, among other things, currently stand at Rs 85 per passenger, which would amount to around Rs 8,500 per flight taking an average of 100 passengers for one flight.

According to a spokesperson of GMR Hyderabad International Airport Ltd, some of the low-cost airlines did not want to pay for the aerobridges, saying they were not using them.

The spokesperson said discussions regarding the usage and charges were currently on and the issue would be resolved in a week or so. The Hyderabad airport currently has 12 aerobridges.

However, airline pilots said aerobridges would lead to faster turnaround time and thus more efficient handling of an aircraft.

Source: business-standard.com

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