Mumbai: To determine airport tariffs, the dual-till norm has found takers in airport operators, while airlines have backed the single-till model . At a hearing today, of a discussion paper on the regulatory process being framed by the Airports Economic Regulatory Authority of India (AERA), the airport operators claimed that single-till norm did not have any incentive for them to increase non-aeronautical revenue. The airlines emphasised single-till would benefit them as well as passengers.
“The UK system of single-till is not the best system. Most privatised airports have adopted dual-till,” said representatives of Delhi International Airport, Mumbai International Airport, Bengaluru International Airport and Greater Hyderabad International Airport. They added that the regulatory approach should incentivise investors in new airports. They argued that for greenfield airports, dual-till was the preferred route.
The single-till norm could reduce aeronautical charges (a component of the overall airport tariffs), as compared to dual-till in which the surplus from non-aeronautical revenues subsidise aeronautical activities.
International Air Transport Association (IATA), which leads and serves the airline industry, said the interest of users — airlines and passengers — would be best served by single-till.
18/03/10 Sanjay Jog/Business Standard
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