New Year to bring more burden on flyers

New Delhi: The aviation ministry is playing Santa Claus this Christmas. After getting life-saving relief for airlines, it is now allowing Delhi and Mumbai airports developers to raise more money for funding their projects. The common passenger, who is yet to get any benefit like cheaper airfares, will end up paying more as airports are being allowed to charge more.
The Mumbai airport will be able to hike aeronautical charges by 10% from January 1. This charge includes landing and parking charges that airlines pay and also the passenger service fee component that flyers pay to the carriers. Airlines say they will have to pass on any increased charge to passengers, something that might lead to higher airfares. While airlines say they will announce the extra burden for passengers only after some time, the passengers service fee that fliers pay directly at time of booking will rise from Rs 225 to Rs 233 after the hike.
The GVK-backed Mumbai airport developers are likely to see their revenue increase by Rs 35 crore in a year because of the hiked charges. Both Mumbai and Delhi airport developers were allowed to raise aero charges by 10% in their third year of operations. This move had so far not been allowed due to poor health of airlines but now since the latter have got huge relief, the ministry has decided to give airports their dues.
The GMR-backed Delhi airport, on the other hand, faces a revenue shortfall of Rs 3,000 crore which can't be filled by a 10% fees hike alone. So the aviation ministry is trying to get GMR's plea for levying an airport development fee of Rs 200-300 and Rs 1,000 for each outgoing domestic and international passenger, respectively, cleared by the government.
"We have got airlines adequate relief and will have to look at problems of other players like airport developers," said a senior ministry official.
26/12/08 Times of India

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Categories: Indian Aviation- In General Dec 2008