AAI gets nod to raise fees by 10%

New Delhi: After private airports developers at Delhi and Mumbai, the government has allowed Airports Authority of India (AAI) to raise its aeronautical charges by 10% at all the 84 airports across the country. This charge includes the landing, parking and navigation fees that airlines pay for using airports.
This will mean higher charges for airlines at Delhi and Mumbai also that together account for nearly 60% of the entire' country's air traffic as air traffic services at all airports is provided by AAI.
The government is also likely to clear AAI's proposal this week for charging development fee from departing passengers at places like Trichy, Trivandrum, Goa, Amritsar and Ahmedabad. Highly placed sources said that the fee is almost certain to be cleared first for airports that have a high international traffic. AAI's proposal also envisages a lower fee for domestic and higher for international passengers.
While the higher aero charges will mean airline's airport bills for landing, parking, navigation and other services will go up, airlines are unlikely to pass it on to passengers. "Airlines have hiked fares dramatically after getting all benefits on the grounds that they would pass on the cost-cutting to passengers by lowering fares. Now they can easily pay little higher airport charges without burdening passengers and clear their dues," said a senior airport official.
The AAI is scheduled to spend Rs 12,000 crore in the 11th five year plan for upgrading airports across the country and augmenting air traffic services. However, the sharp fall in number of passenger and aircraft have affected its revenue sharply and led to a shortfall of Rs 5,000 crore. It recently sought government nod to issue issue infrastructure bond worth Rs 5,000 crore to allow it to make good the deficit by raising money from public.
02/03/09 Saurabh Sinha/Times of India

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Categories: Airports Mar 2009