'Increased airport charges a short-term solution'

New Delhi: With the government proposing to increase the charges on airlines operating at Delhi, Mumbai and Bangalore airports during 7am-10am and 6pm-10pm, airlines are expected to pass on the hike to customers in the form a "primetime fee", a senior airline executive said.
The hike in charges would "essentially be a short-term solution", Civil Aviation Secretary Ashok Chawla said. "In the long run, we have to provide more facilities like additional runways and rapid-exit taxiways to overcome congestion, which should be in place by 2008.
It's a welcome move for decongesting Delhi and Mumbai. It comes with a cost that may be good for the aviation industry.
Whether it is passed on to the passenger will be decided by how the competition reacts," said Indian Airlines CMD V Trivedi.
Private carriers were sceptical. They feared that it might be difficult to shift to non-peak hours due to the heavy and "inelastic" demand during peak hours.
06/03/07 Saurabh Sinha/Times of India

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Categories: Airports Mar 2007, General Aviation Mar 2007