Airlines face higher charges at Delhi, Mumbai airports

New Delhi: Close on the heels of clearing the levy of Rs 375 as user fee from passengers flying out of Hyderabad, the aviation ministry could now make India's biggest airports costlier for both airlines and fliers.
After initially disallowing GVK's demand for a 10% hike in aeronautical charges for Mumbai airport on the ground that it would further hike costs and make flying more expensive, the ministry is now learnt to be favourably considering the same.
"A 10% hike in aeronautical charges in third year of operation was allowed in the agreements with both GMR and GVK groups for Delhi and Mumbai airports, respectively. Mumbai International Airport Pvt Ltd (MIAL) has been pursuing this demand as its financial model has been based on higher revenues in third year and it is being considered at highest level in the ministry," said sources. If Mumbai is allowed the hike, the GMR Group is also likely to ask for a similar treatment as it is spending huge amounts on building the new runway and upcoming terminals.
As part of the higher airport charges, MIAL has also asked for a hike in the passenger service fees (PSF) that is levied on each ticket. Airlines are likely to pass on the increased costs on them to passengers. Mumbai is the busiest airport of India and along with Delhi handles over 60% of the about 3,760 aircraft movement daily. Airlines say higher charges at Mumbai and Delhi would affect their overall cost of operations and lead to higher fares.
20/08/08 Saurabh Sinha/Times of India

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Categories: Airports Aug 2008, Indian Aviation- In General Aug 2008