Monday, September 21, 2015

'High airport charges unlikely to impact air fares'

New Delhi: Higher airport charges are unlikely to have a major cascading impact on air fares as it accounts for less than 10 per cent of a carrier's operating costs, according to airport sources.
While the quantum of airport charges has been a matter of debate in the country, where the aviation sector has high growth potential, the government is now looking at ways to address the issue of high air fares, especially during festive seasons.
An analysis of the financials of airlines indicates that airport charges are not a major cost factor as it accounts for less than 10 per cent of the carriers' operating costs, according to airport sources.
Passing on the reduction in air fuel prices to passengers would result in low air fares substantially while a cut in airport charges is unlikely to have a major impact, they added.
21/09/15 PTI/Statesman
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