Due to high operational costs, huge jet fuel prices and heavy airport charges, SpiceJet and Indigo, famous for cheap flights to India, have sought government’s approval to move their international operations to 1D from current Terminal3
Online sources reveal that IndiGo and SpiceJet have sought Indian government’s approval to move their international operations to the domestic terminal from the existing Terminal 3 at Delhi’s Indira Gandhi International Airport.
The top two Indian budget carriers, famous for offering cheap flight tickets, are hugely affected by the high operational costs, owing mainly to the sky-high jet fuel prices and heavy airport charges.
A senior aviation ministry official said: “The Ministry has received the proposals from IndiGo and SpiceJet, requesting to allow them operate from the 1D terminal instead of the T3 on account of higher costs of operations.”
Figures floating in the Indian media indicate that IndiGo with 23.9% market share, was ranked as the largest no-frills carrier in May 2012, while SpiceJet’s share with 18.5% in May 2012 was the third largest Indian domestic carrier.
Sources reveal that Indian government is yet to come out with their decision on the approval sought by the airlines.
The airport development fee (ADF) at the Delhi airport has shot up by an enormous 346% since May 2012.
Presently, Air India, Jet Airways and Kingfisher Airlines operate flights to India from Terminal 3, while SpiceJet, IndiGo and GoAir operate from the old domestic terminal called 1D of Delhi’s international airport.
Air India, Jet Airways and Kingfisher Airlines also operate their domestic operations from the new T3 terminal.
IndiGo operates eight international outbound and inbound cheap flights to India every week and connects to top holiday destinations like Bangkok, Singapore, Dubai, and Kathmandu to Delhi. Chennai-based SpiceJet, which is all set to launch services to Dubai from next month, presently offers travel deals to Kathmandu from the national capital, Delhi.
Airlines believe that the proposal, if accepted, will help them to cut down their operational cost and provide better manpower management.