Airlines say charges will hit operations

New Delhi: Indian airlines are up in arms against a new fee to be imposed by the of Bangalore, Hyderabad airports next month.
The much awaited two new southern airports have proposed to charge a so-called user development fee—of about Rs700 per passenger for domestic users, and Rs900 for international passengers—to offset their large investments.
At a meeting held in the capital on Tuesday and attended by senior airport, airlines and civil aviation ministry officials, the airlines expressed reservations over making the fee a mandatory part of tickets.
A graded model could mean a smaller fee on short-haul routes, such as Bangalore-Hubli, and a higher fee for longer routes, such as Bangalore-New Delhi.
Indian passengers pay Rs2,025 as surcharges, including Rs1,650 for a fuel surcharge and Rs150 as a congestion surcharge—both of which go to individual airlines. A passenger fee of Rs 225 goes to the government for airport maintenance and security.The low-cost carriers (LCCs) are likely to be hit the most if the new fee is levied.High airport charges could impact how airlines pick and choose airports as well.
05/02/08 Tarun Shukla/Livemint

To Read the News in full at Source, Click the Headline

Categories: airports Feb 2008, New Feb 2008