New Delhi: A leading aviation think-tank has welcomed the budget proposals to build more airports, while listing the pitfalls that can derail the exercise.
According to Capa-Centre for Aviation, the budget sees the civil aviation sector as a major growth driver.
However, there were important issues to be addressed such as the impact of high charges on airlines and passengers.
Uncertainty about the economic regulatory framework as well as the broader operating challenges has also made investors wary.
In this year’s budget, finance minister Arun Jaitley announced that new airports will be developed in smaller cities and towns.
The Airport Authority of India (AAI) will build the airports through PPPs (public-private-partnerships).
The industry body said there was a need for the government to look into increased charges at PPP airports such as the Delhi International Airport.
“On some domestic sectors, around 17 per cent of the average gross fare now consists of taxes and fees, of which 10-12 per cent are related to airport charges,” it said.
16/07/14 Telegraph
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According to Capa-Centre for Aviation, the budget sees the civil aviation sector as a major growth driver.
However, there were important issues to be addressed such as the impact of high charges on airlines and passengers.
Uncertainty about the economic regulatory framework as well as the broader operating challenges has also made investors wary.
In this year’s budget, finance minister Arun Jaitley announced that new airports will be developed in smaller cities and towns.
The Airport Authority of India (AAI) will build the airports through PPPs (public-private-partnerships).
The industry body said there was a need for the government to look into increased charges at PPP airports such as the Delhi International Airport.
“On some domestic sectors, around 17 per cent of the average gross fare now consists of taxes and fees, of which 10-12 per cent are related to airport charges,” it said.
16/07/14 Telegraph
