Saturday, January 28, 2012

Airfares to soar as AAI wants charges hiked

New Delhi: Flying is likely to become costlier this year as the Airports Authority of India is planning to demand that landing and parking charges for airlines be "at least" doubled. This comes close on the heels of the 774% hike sought by the Delhi International Airport Pvt Ltd (DIAL), with the regulator approving a 334% increase from April. Mumbai airport is also learnt to be in the process of demanding an increase in charges.
Once the AAI demand is approved by the Airport Economic Regulatory Authority (AERA), the enhanced charges will be passed on to passengers in form of higher fares. This will be in addition to new charges at places like Delhi and the general increase airlines are contemplating to cover their massive losses.
While airlines are opposing any hike in airport charges and asking operators to increase cash flow by lower tariffs to get more footfalls, airports have also begun citing massive losses and non-payment of dues from nearly bankrupt airlines.
"Airlines are in a very bad shape with Air India and Kingfisher running up huge past dues that they are unable to pay. We were avoiding seeking a hike in airport charges at this juncture, but now it has become unavoidable for us too as AAI has been augmenting infrastructure in form of new terminals and runways across the country. We need at least a 200% hike and will move AERA soon," said a senior AAI official.
28/01/12 Saurabh Sinha/Economic Times
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