MoCA allows MIAL to increase aeronautical charges

Mumbai: Air travellers flying from Chhatrapati Shivaji International Airport (CSIA), Mumbai may have to pay more soon. The Ministry of Civil Aviation (MoCA) has recently sent a letter to GVK-backed Mumbai International Airport Limited (MIAL), allowing the airport operator to increase aeronautical charges by ten per cent which in turn will be passed on to the passengers. Aeronautical charges comprise Passenger Service Fee (PSF) and aircraft landing and parking charges. According to a report in today’s Economic Times (ET), certain sources informed that MoCA has allowed MIAL to increase aeronautical charges by ten per cent effective January 1, 2009. Due to this, landing, parking and PSF at CSIA will go up next year. MIAL has already issued a circular in this regard to airlines. A ten per cent increase in airport charges will add to about Rs 35 crore to the airport’s total annual revenue.
Confirming that the airline has received the circular from MIAL, a Kingfisher Airlines spokesperson said, “We have received the circular. It will be early to assess any impact of this on the air ticket. As air ticket is not the reflection of aeronautical charges, it will take some time to conclude anything.” According to an industry estimate, landing, parking and navigational charges contribute to about six per cent of the total operating cost of an airline. Reacting to the development, an airline official stated that the airline company will have to pass on the additional financial burden to customers. According to the operation, management and development agreement between the government and MIAL, the latter was expected to complete some of the capital projects such as building new terminal by May this year, which will be eligible for increased aeronautical charges.
24/12/08 TravelBizMonitor

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