Airport developers plan hike in airline charges

NEW DELHI: Airfares are likely to go up further as the two leading airport operators — GMR Group-led Delhi International Airport (DIAL) and GVK-led Mumbai International Airport (MIAL) — plan to increase landing and parking fees at the airports. Airlines, reeling under operating cost pressure, claim they are not in the position to absorb the increased fees and it has to be passed on to passengers.
According to the concession agreement between the airport operators and the government, the former can increase airport charges by 10% in the third year of airport operation. The airport operators have also sought an increase in passenger service fee from the existing Rs 225. “We have received proposals from both airport operators to hike airport charges which include landing and parking fees from airlines. We are still deliberating on it.
Before taking any decision, we would keep airlines’ financial health in mind,” an official in the ministry of civil aviation said
12/05/08 Nirbhay Kumar/Economic Times

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Categories: Airports May 2008, New May 2008