Airports Authority of India may levy landing fees on more airlines

New Delhi: The Airports Authority of India (AAI), a body that owns and operates most airports across the country, plans to levy landing fees on some aircraft which have been exempt from such a charge till now. This move, if cleared, will help the beleaguered Authority to improve its revenues even as it hurts some airlines at select routes.
But at the same time, the Airport Regulator wants to soften the blow for airlines at two of the largest airports in India-Mumbai and Delhi-by refusing a proposal of increasing airport charges at these two locations by 10% each.
AAI has proposed charging landing fees from aircrafts having seating capacity of less than 80 passengers and being operated by scheduled domestic operators. Such aircraft have been exempt from landing and parking charges at Indian airports till now. Giving this information in Lok Sabha on Thursday, Civil Aviation minister, Praful Patel said he has asked AAI to commission a study and get a clearer picture on this proposal.
The waiver of landing charges for 80-seaters andother concessions in Route Navigational Facility Charges (RNFC), 15% reduction in landing charges for domesticflights etc. were allowed by AAI from 2004 at all airports.
Meanwhile, the Airports Economic Regulatory Authority (AERA) appears to be batting for embattled airlines. In a consultation paper posted on its website, the Authority has rejected demands by both, Mumbai and Delhi International Airports, to raise base airport charges by 10%. If these charges are implemented after the consultation process is over, airlines will have to shell out more for using airport facilities and therefore suffer further margin erosion.
19/04/10 Sindhu Bhattachrya/Daily News & Analysis

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