New Delhi: Airfares in the domestic sector are likely to rise, as the government is considering a hike in the passenger services fee (PSF) charged on every domestic ticket.
The levy, used to fund the cost of providing security at airports, has not been increased since 2002.
The move to increase the PSF has been initiated as the collection of funds on this count has fallen well short of the cost of providing security at airports.
"In a note to be sent to the Cabinet Committee on Security, we have suggested two options to bridge this shortfall. One is to increase the PSF to recover the deficit and the other is of government funding the deficit," said a senior civil aviation ministry official.
The annual expenditure in providing security at airports was around Rs 1,200 crore, while the money collected through PSF was estimated at about Rs 400 crore less than the spending on security.
19/08/13 Mihir Mishra/Indian Express
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The levy, used to fund the cost of providing security at airports, has not been increased since 2002.
The move to increase the PSF has been initiated as the collection of funds on this count has fallen well short of the cost of providing security at airports.
"In a note to be sent to the Cabinet Committee on Security, we have suggested two options to bridge this shortfall. One is to increase the PSF to recover the deficit and the other is of government funding the deficit," said a senior civil aviation ministry official.
The annual expenditure in providing security at airports was around Rs 1,200 crore, while the money collected through PSF was estimated at about Rs 400 crore less than the spending on security.
19/08/13 Mihir Mishra/Indian Express
