High fuel cost coupled with high user fee charged at some airports make India a difficult place to run airlines successfully, a senior official of British Airways said on Wednesday.
"Cost element is very significant. India is very significantly costly place to run an airlines," Christopher Fordyce, regional commercial manager (South Asia) British Airways Plc, told reporters.
"We have seen significant price increase in fuel cost, airport fee and some other cost that included in aviation sector which make it difficult for some carriers particularly which are unable to charge premium, to be successful," he said.
According to industry experts, Air Turbine Fuel cost in India constitutes nearly 40 per cent of the ticket cost against 25 per cent in other countries.
To a query on British Airways' expansion plans in India, he said as of now they do not have
"These expansions are economic decisions. We have to take into account cost. And wherever you have high cost it will make less attractive to expand. Unless you can make it up with additional revenue," he said.
Meanwhile, BA today (on Wednesday) announced that it will be expanding its route network from Hyderabad and Chennai from summer 2013 to six flights per week from the current five flights per week.
"India continues to be one of the fastest growing markets for British Airways and we are proud to be participating as well as contributing to India's tremendous growth story," Fordyce said.
He said that the airlines offers an attractive discount exclusively for its Hyderabad and Chennai customers flying to London.
Customers will be able to enjoy 25 per cent discount on all club world tickets booked before November 23, 2012 to London. The travel will be valid until December 15, 2012, he explained.