Regulator AERA has allowed upcoming airports to follow a hybrid model for determining tariffs that may lead to fliers shelling out more as airlines may pass on the additional burden to them.
Under the 'Hybrid Till' model only up to 30 per cent of the non-aeronautical revenues, which include segments like retail, food & beverages and parking, would be used for cross-subsidisation of aeronautical charges.
Aeronautical charges include those related to route and terminal navigation services.
Currently, most of the airports follow 'Single Till' model whereby non-aeronautical revenues are completely used to cross subsidise aeronautical charges.
With the new model, only up to 30 per cent of the non- aeronautical revenues would be used for cross subsidisation.
Such a tariff mechanism could push the expenses higher for fliers as airport operators might hike the user development charges.
The new national civil aviation policy, unveiled in June last year, had recommended 'Hybrid Till' model.
25/01/17 Outlook
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Under the 'Hybrid Till' model only up to 30 per cent of the non-aeronautical revenues, which include segments like retail, food & beverages and parking, would be used for cross-subsidisation of aeronautical charges.
Aeronautical charges include those related to route and terminal navigation services.
Currently, most of the airports follow 'Single Till' model whereby non-aeronautical revenues are completely used to cross subsidise aeronautical charges.
With the new model, only up to 30 per cent of the non- aeronautical revenues would be used for cross subsidisation.
Such a tariff mechanism could push the expenses higher for fliers as airport operators might hike the user development charges.
The new national civil aviation policy, unveiled in June last year, had recommended 'Hybrid Till' model.
25/01/17 Outlook
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