AAI not happy with carriers deploying smaller aircraft

New Delhi: Even as full-service carriers such as Jet and Kingfisher have started deploying smaller aircraft or ATRs to cut costs, the move has not gone down well with the country’s largest airport operator Airports Authority of India (AAI).
The smaller aircraft, falling in a certain weight category, are charged a concessional rate of up to 60 per cent, for route navigation facilites, terminal navigation and landing charges by airport operators. The airport operator recently raised this issue with the civil aviation ministry and asked it to review the policy for rebate for smaller aircraft.
A senior airline executive told The Indian Express that airlines may not necessarily be shifting capacity to ATRs, but the connectivity between the metros and mini-metros is improving, resulting in increased number of ATR landings and take-offs.
Not only do the airlines benefit from using ATRs in terms of exemption from paying landing and parking charges, but they also save on fuel costs. As a special concession, a fixed 4 per cent sales tax is charged on aviation fuel for ATR operations.
11/01/10 Smita Aggarwal/Indian Express

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Categories: Airports Jan 2010, Indian Aviation- In General Jan 2010