AI defaults on airport fee pay

New Delhi: The hefty airport development fee (ADF) airlines collect from you at the time of booking ticket to ensure world class infrastructure could well be going down a black hole. The GMR and GVK Groups, which are developing Mumbai, Bangalore, Delhi and Hyderabad airports, have said national carrier AI collects ADF ranging from Rs 100 to Rs 1,875 per flier on their behalf but does not pay them this money. The same happens with the passenger service fee component that is levied to cover security-related expenses and other charges.
AI uses this money to somehow keep afloat. AI has not paid their ADF dues along with other charges like landing and parking. "The combined dues of Delhi and Hyderabad are Rs 224 crore, of which Rs 50 crore is from ADF alone," said a senior official of the GMR Group that runs Delhi and Hyderabad. While Mumbai airport has now been asked not to charge any ADF, its dues on this front from AI were over Rs 6 crore as of April 30, 2011.
In a letter dated May 12, 2011, Delhi International Airport (DIAL) CEO I P Rao has told AI CMD Arvind Jadhav that unless AI pays 75% of the Rs 190 crore dues of Delhi and Rs 34 crore dues of Hyderabad airports and submit plan for clearing the balance by Friday, it would put the Maharaja on cash-and-carry from June 1.
26/05/11 Saurabh Sinha/Times of India

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Categories: Air India May 2011, Airports May 2011