Summary
- Several airlines, both domestic and international, owe dues to the Airports Authority of India, with Alliance Air leading the pack at over ₹830 million.
- The list includes three domestic carriers (including SpiceJet and IndiGo) and four foreign airlines (Biman Bangladesh Airlines, British Airways, Emirates, and Qatar Airways) with outstanding payments.
- Running an airline entails various costs, including fixed costs like rental/purchase expenses, as well as variable costs like fuel prices and airport fees.
The Government of India has revealed that several airlines, both domestic and international, have pending dues to the Airports Authority of India for more than one year. Barring Alliance Air, the dues of other airlines are not that significant but are still over ₹10 million (around $120,000).
Alliance Air leads the pack
India’s Ministry of Civil Aviation has revealed a list of airlines that owe money to the Airports Authority of India (AAI) for more than a year as of November 30, 2023. The AAI is a government body that manages more than 100 airports in India and shoulders the responsibility of managing and maintaining civil aviation infrastructure in the country.
Photo: ATR
Jyotiraditya Scindia, the country’s Civil Aviation Minister, provided the data for these figures in a written reply. The list includes three domestic carriers and four foreign airlines. Only those carriers have been listed that owe more than ₹1 billion (around $120,000) in dues, excluding the interest that has been accrued.
Interestingly, leading the pack is the government’s own airline and the only state-owned carrier in the country, Alliance Air, which owes over ₹830 million (almost $10 million). The other two domestic carriers on the list are SpiceJet, with dues of ₹21 million ($255,000), and IndiGo, which owes ₹13.8 million ($165,000).
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International airlines on the list
The list also includes four foreign airlines that owe money to the Indian aviation body. Among those, Biman Bangladesh Airlines owes the most at a little over ₹40 million ($479,000). Biman is followed by British Airways (approx. $221,000), Emirates (approx. $172,000), and Qatar Airways (approx. 120,000). Scindia noted,
“No dues exceeding Rs 10 lakh (approx. $11,000) have been reported on the part of any now-defunct airlines to AAI since 2021.”
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Costs and fees
Running an airline takes a significant toll on the pocket. With several fixed and variable costs that include overflying rights, various airport fees, employee salaries, and fuel costs, many carriers work on razor-thin margins.
Some of the major fixed costs for airlines include aircraft depreciation and rental or purchase costs. Several other costs in this category are part of the list, such as maintenance, insurance, reservations, and booking costs.
Fuel accounts for a significant chunk of airline costs, and recent fluctuations in fuel prices due to global geopolitical events have shown just how much they can dictate airline profits and losses. Many airlines often enter into fuel buying agreements ahead of time to lock in prices, which provides some cushion against price rises. But overall, fuel costs remain a major part of airline expenditure.
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Of course, airports have their own fees and taxes that all add up to the overall airline expenditure. These include landing fees, which, in the case of widebody airplanes operating at major global airports, can cross $5,000 per take-off or landing. Add to that the parking fees and other dues, and the overall bill goes up pretty swiftly. Those interested in learning more about such costs can read the following article.
The Cost Of Flying: What Airlines Have To Pay To Get You In The Air
Let’s take a look at what an airline’s most significant operating expenses are.
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