MIAL’s added levy could leave passengers hungry

A dispute between Mumbai International Airport Limited and two airline caterers could leave airlines red-faced and passengers hungry.
MIAL has proposed about 15 per cent levy on the gross annual turnover of airline caterers. However, Taj Sats and SkyGourmet, which service several domestic and international carriers, including Air India, Jet Airways and Kingfisher, are upset with the charges and are resisting its imposition.
However, MIAL has told the two catering companies that it will not allow its vehicles inside the airport after November 30, if they refuse to pay the levy. Both the sides are presently trying to resolve the contentious issue through discussion.
A senior officer from Taj Sats said, “We have set up kitchen facilities on our own land, and pay a licence fee to MIAL. An additional levy will affect us adversely, as the profit margin in the catering business is low. We are able to sustain only because of high volumes. If an additional levy is imposed, we may have to pass on the burden to the airlines. All our vehicles have valid permits. So, how can MIAL stop our vehicles from plying inside the airport?”
A spokesperson for SkyGourmet said, “We did receive a letter stating there would be an imposition of the levy, and are in discussions with MIAL about the same. MIAL has not threatened to stop our vehicles from entering the airport.”
23/11/09 Aneesh Phadnis/Mumbai Mirror.com

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Categories: Airports Nov 2009