Higher levies to make Mumbai airport costlier for airlines

At a time high ATF prices are making a hole into airlines’ bottomlines, flying and landing at Mumbai international airport may become costlier for the players in the sector. The GVK consortium, which is developing Mumbai international airport, is likely to get civil aviation ministry’s approval for hiking aeronautical charges by 10%.
However, the GMR-led consortium, developing the Indira Gandhi International Airport at New Delhi may not be allowed to do so as it has not been able to complete the mandated 20% of capital project works within the stipulated time period of two years. The developers of the Delhi and Mumbai airports have been lobbying with the ministry and other stakeholders so as to be allowed to hike the charges they levy on airlines for landing and parking among other charges. But the ministry has been holding them back the idea citing ongoing financial difficulties faced by the airlines.
Ministry sources confirmed that while GVK’s plea is being considered favourably by the ministry as the grounds for their request seem more pliable, GMR may not get permission for a similar hike. “The developer of the Delhi International Airport has not finished the mandated 20% of capital project works within the stipulated time period of two years, so no permission would be granted to them for the hike in aeronautical charges this time,” the source said.
28/08/08 Shauvik Ghosh/Financial Express

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Categories: Airports Aug 2008