Now, airport development fee to propel fares higher

New Delhi: Air fares are likely to fly higher with the government planning to levy an ‘airport development fee’ on passengers.
This could be an additional burden as the government has already proposed to charge a cess on all air tickets to run uneconomic airports. The development fee may be levied on passengers passing through major airports, which have an annual passenger turnover of more than 15 lakh.
This fee will be in addition to the Rs 221 passenger service fee (PSF) currently paid by each traveller. Though a part of the PSF is transferred to the Airports Authority of India (AAI) for provision of various facilities, the civil aviation ministry plans to levy the development fee for upkeep and development of major airports.
A proposal to this effect has already been included in the Airports Economic Regulatory Authority (AERA) Bill 2006, which is likely to be tabled in the Budget session of Parliament, a civil aviation ministry official said.
AERA, which is being set up as an independent economic regulator, will determine the amount of airport development fee after consulting the various stakeholders, including airport developers, government sources said.
09/03/07 Sunny Verma/Economic Times

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Categories: Airports Mar 2007, General Aviation Mar 2007