As Indian airports raise fees, others choose to cut them

Mumbai: As Indian airports run by private operators mark up charges to recover investments, many airports across the world, particularly Asia, have either reduced or frozen fees and levies in the face of a global economic downturn that has hit the aviation industry hard.
For instance, Civil Aviation Authority of Singapore, or Caas, that runs Singapore’s international airport has offered a 25% landing fee rebate. The Civil Aviation Administration of China, or Caac, has suspended for six months starting 1 January a 10% landing fee surcharge at Chinese airports.
User-friendly: A China Airlines plane at Taiwan Taoyuan International Airport. China has temporarily suspended a landing fee surcharge. Maurice Tsai / Bloomberg
User-friendly: A China Airlines plane at Taiwan Taoyuan International Airport. China has temporarily suspended a landing fee surcharge. Maurice Tsai / Bloomberg
In India, the story is different, although passenger traffic growth has declined in a slowing economy and airlines in the country are forecast to end the fiscal year with combined losses equivalent to $2 billion (Rs9,760 crore).
On 9 February, the government approved the levy of an airport development fee (ADF) by Delhi International Airport Ltd, or DIAL, which runs the Indira Gandhi International Airport in New Delhi, at Rs1,300 per departing international passenger and Rs200 per departing domestic passenger.
The levy, which takes effect from 1 March, will be in force for a period of three years to help the GMR Group-led consortium that runs the airport raise Rs1,827 crore to cover the costs of modernizing the airport.
Mumbai International Airport Ltd, or Mial, which runs the Chhatrapati Shivaji International Airport in Mumbai, has also requested the government for permission to levy a similar charge. It has already increased airport charges by 10% from 1 January 2009—a hike DIAL wants to emulate.
Bengaluru International Airport is charging an extra fee from passengers in the name of a user development fee, or UDF, at Rs260 per domestic passenger and Rs1,070 per international passenger. At Hyderabad the same fee is Rs375 and Rs1,000, respectively.
12/02/09 P.R. Sanjai/Livemint

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Categories: Airports Feb 2009, Foreign Feb 2009