Airports seek to raise charges again citing slow revenue growth

New Delhi: Operators of the high-traffic airports in Mumbai, Delhi and Hyderabad have proposed another increase in airport charges to counter slower-than-expected revenue growth.
The Airports Economic Regulatory Authority, or Aera, says it will decide on the proposal only after consultations with stakeholders, including airlines and airport operators, but legal agreements already in place suggest that the newly established regulator may have its hands tied.
Delhi International Airport Pvt. Ltd, or DIAL, and Mumbai International Airport Pvt. Ltd, or Mial, have sought to increase passenger service fees, and aircraft landing, parking and route navigation charges by 10% each.
GMR Hyderabad International Airport Ltd, or Ghial, has sought approval for a steep 20% increase in the user development fee charged per domestic passenger from Rs375 to Rs450; it proposes to more than double the fee from Rs1,000 to Rs2,600 per international passenger.
Bangalore International Airport Ltd, or Bial, which levies a user development fee of Rs260 and Rs1,070 per domestic and international passenger, respectively, has already sought Aera’s approval for an increase by an undisclosed margin.
Private airport operators are seeking to recover a part of their investment and meet service standards after a global economic downturn last year led to a sharp decline in passenger growth and revenue. Consumer forums and airlines say the increase in charges isn’t justified.
17/11/09 Tarun Shukla/Live Mint

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Categories: Airports Nov 2009