New Delhi: An inter-ministerial panel has called for a fresh approach to setting airport tariffs after three major domestic airports proposed a steep hike in user charges that threaten to push up airfares further.
The airport financing task force, chaired by Planning Commission member BK Chaturvedi, has recommended that user charges for airports be fixed "upfront" at a reasonable level. "This will not only protect user interests, but also eliminate regulatory uncertainty over tariff fixation as also the potential for gold-plating of costs," the panel said in its report.
The panel's view assumes significance as the Airports Economic Regulatory Authority (AERA) is considering the proposals of the airports at Kolkata, Chennai and Mumbai. Earlier this year, the regulator had approved a 340 per cent increase in user charges at the New Delhi airport. People with knowledge of the matter said that while Mumbai International Airport Ltd (MIAL) has proposed a 660 per cent increase in user charges, the airports at Kolkata and Chennai, which are operated by the Airports Authority of India (AAI), have sought the introduction of a steep user development fee (UDF) on passengers besides a significant increase in user charges paid by airlines.
27/09/12 Vikas Dhoot/Economic Times
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The airport financing task force, chaired by Planning Commission member BK Chaturvedi, has recommended that user charges for airports be fixed "upfront" at a reasonable level. "This will not only protect user interests, but also eliminate regulatory uncertainty over tariff fixation as also the potential for gold-plating of costs," the panel said in its report.
The panel's view assumes significance as the Airports Economic Regulatory Authority (AERA) is considering the proposals of the airports at Kolkata, Chennai and Mumbai. Earlier this year, the regulator had approved a 340 per cent increase in user charges at the New Delhi airport. People with knowledge of the matter said that while Mumbai International Airport Ltd (MIAL) has proposed a 660 per cent increase in user charges, the airports at Kolkata and Chennai, which are operated by the Airports Authority of India (AAI), have sought the introduction of a steep user development fee (UDF) on passengers besides a significant increase in user charges paid by airlines.
27/09/12 Vikas Dhoot/Economic Times
