AERA to decide on single-till method by August

New Delhi: The Airport Economic Regulatory Authority (AERA) is expected to take a final view on whether to go ahead with the ‘single-till’ method to compute airport revenues by next month.
The method of calculating airport revenues has been a bone of contention between airport operators and AERA, with the former batting for ‘dual-till’ while AERA has favoured single-till in a consultation paper released earlier. Airlines, on their part, agree with AERA and want the single-till method to be implemented.
AERA chairman Yashwant Bhave said Thursday, “Duality (using the dual-till method) is not legally feasible. We have an option between using a hybrid model and going for single-till. We are waiting for the government’s view on the matter and a final view should be taken in a month.”
To put it simply, the single-till method involves cross-subsidisation of aeronautical revenue by non-aeronautical revenue; in the hybrid method some of the aeronautical revenue is cross-subsidised whereas in the dual-till method the two revenue streams are kept separate.
24/07/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Airports Jul 2010