Sunday, August 20, 2017

Passenger service fee may go up to fill up gap of airports security cost

New Delhi: The Passenger Service Fee (PSF), levied on air travellers, might marginally go up as the ministries of home and civil aviation were finding it increasingly difficult to manage the escalating cost of airport security, the government officials said.

The differences between the ministries over who would bear the cost of providing security at airports continued to linger with the Civil Aviation Ministry arguing that it was the responsibility of the central government to provide security since it was a sovereign function.

The Home Ministry had set up a committee to find out the actual cost of providing security in the 98 functional airports while the Civil Aviation Ministry would find out how much revenue it could generate from the PSF, car parking facilities and through rentals in all airports in the country, a senior government official, privy to the development, said.

If the revenue did not commensurate with the cost, there was a possibility of enhancing the PSF marginally in future as it had become increasingly difficult to manage the escalating cost of airports security, another official said on condition of anonymity.
20/08/17 Economic Times