Higher peak-hour charge to hit LCCs the hardest

New Delhi: The civil aviation ministry on Monday dealt a body blow to low-cost carriers with its decision to double landing charges during peak hours (7am to 10am and 6pm to 10pm) at Delhi, Mumbai and Bangalore domestic airports. Aimed at easing congestion, the new charges would come into effect from the last week of March. The three airports account for nearly half of all domestic traffic. Civil aviation secretary Ashok Chawla has called a meeting of airlines on March 19 to apprise them of the decision.
Landing fees are currently charged according to the weight of the aircraft.Airlines are, however, charged additional fees if they fail to take off within two hours of landing.
Domestic carriers said they would pass the price hike on to consumers.
The move will hit low-cost carriers the hardest since the hike will impact their fares the most.
Calling the new charges unfortunate, Air Deccan COO Warrick Brady added, “We already have enough cost today. Additional costs will have to pass on to the customers.” Sources close to Kingfisher Airlines said there would be no option but to increase fares if differential pricing comes into effect.
06/03/07 Financial Express

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Categories: Airports Mar 2007, General Aviation Mar 2007, Low Cost General Mar 2007