Airports Authority plans to levy user fee in 14 cities

Despite passenger air traffic growth slumping to a four year low, passengers may have to pay more soon for flying from Chennai, Kolkatta, Madurai and Coimbatore besides ten more cities. The Airports Authority of India, which operates the airports in these 14 cities, is awaiting approval for levying user development fee at there.
Meanwhile, the Authority also plans to approach the Finance Ministry for raising fund through infrastructure bonds. Three years back a similar proposal was turned down by the Ministry.
A person familiar with the development told Business Line, “The Authority has submitted plans to levy UDF at Chennai, Kolkatta and Goa to the Airport Economic Regulatory Authority (AERA). On the other hand, proposal for 11 other airports have been sent to the Ministry of Civil Aviation.”
AERA considers proposal for airports with traffic of 15 lakhs and above. Currently, Delhi, Mumbai, Kolkatta, Chennai and Goa fall under the purview of AERA. All other airports are regulated by the Ministry of Civil Aviation. At present, passengers are required to pay development fee when boarding a flight at 12 airports including Delhi, Hyderabad, Bangalore and Thiruvanthapuram.
19/02/12 Shishir Sinha/Ashwini Phadnis

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Categories: airports Feb 2012