New pricing norms could favour airlines

Mumbai: In a move that could potentially change the way airport charges are levied in India and benefit airlines as well as passengers, the newly formed tariff regulator Airports Economic Regulatory Authority of India (Aera) said the so-called single-till model is the most appropriate way to decide such charges in India.
Private airport operators continue to battle for the double-till model.
In the single-till model, followed by UK airports such as Heathrow and Gatwick, all principal airport activities including aeronautical and commercial (or retail) are taken into account to determine the level of airport charges. In contrast, only aeronautical or flying-related activities are considered under the dual-till principle.
Airlines prefer the single-till model as airport charges are likely to be lower under it.
However, private airport operators and their investors are keen to have charges decided on the basis of a double-till model because this will help them increase revenue. Currently, most Indian airports do not earn significant commercial income.
10/03/10 P.R. Sanjai/Live Mint

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