GVK wants a hike in Mumbai airport fees

New Delhi: As flying is becoming unaffordable due to ever-increasing fuel surcharge, there's more bad news in store for the ailing aviation industry and passengers. The GVK-backed Mumbai International Airport (P) Ltd (MIAL), which completes two year of operation on Saturday, has sought a 10% hike in aeronautical charges, which are levied on airlines as landing and parking charges. It has also asked for a hike in passenger service fee (PSF, levied on each ticket), which could go over Rs 232, from Rs 225 at present.
So, in the near future air fare could go up again as airlines have made it clear that they are in no position to absorb any additional cost and would be forced to pass everything on to passengers in terms of higher fares, something that could further affect the dwindling growth rate of the industry.
Mumbai is the busiest airport of India and along with Delhi handles over 60% of the about 3,760 aircraft movements daily. Airlines say higher charges at Mumbai and Delhi would affect their overall cost of operations and lead to higher fares.
When contacted, MIAL officials confirmed that a proposal for 10% hike has been sent to the civil aviation ministry but refused to comment further. The GMR-backed Delhi airport is yet to send such a proposal to the government.
03/05/08 Saurabh Sinha/Times of India

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Categories: Airports May 2008