Mumbai: The Airports Economic Regulatory Authority (AERA) will examine differential pricing issues of aviation turbine fuel at the two Delhi airport terminals. AERA chairman Yashwant Bhave said the regulator is in the process of finalising a consultation paper on the charges that can be imposed by an airport to supply fuel through hydrants.
Bhave's announcement comes in the wake of concerns raised by Jet Airways and Kingfisher Airlines over higher costs of ATF at the T3 terminal. The two airlines had said that they wanted to shift operations from terminal 3 (T3) back to terminal 1D (T1D), as they fear losing on the competitive edge to rival low-cost carriers. Airlines operating from T3 have to pay about Rs 1,000 more per kilo litre for ATF because the fuel is dispensed through hydrants instead of a bowser (tanker).
“The charge has to be related to the costs (of providing infrastructure),” Bhave said, adding AERA will determine the rates. He hinted, that in principle, there was nothing wrong in airports charging users for the use of infrastructure.
The anomaly over ATF pricing is proving to be a bone of contention between the airlines and Delhi International Airport Limited. Both Jet and Kingfisher Airlines had written to the civil aviation ministry in this regard. Calls and text messages from Business Standard did not elicit any response from Civil Aviation Secretary Naseem Zaidi.
Rising fuel prices have been denting airlines' profitability and high cost of operations from T3 is being seen as the reason behind airlines expressing their wish to get back to T1used by domestic low-cost carriers.
05/08/11 Business Standard
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