Kochi: The change in tariff model put forward by Airports Economic Regulatory Authority of India (AERA), Cochin International Airport Ltd (Cial) will lead to an increase in ticket fare for passengers using Cial.
As per the order, Cial is required to compute the aggregate revenue requirement under the 'Hybrid Till' model.
Under this model, the airport charges are calculated using 100% aeronautical revenue and 30% of non-aeronautical revenue to determine airport charges.
Airport officials suggest that the new order will only lead to "marginal" increase in landing fee and parking fee for airline operators. But the operators suggest that the introduction of 'Hybrid Till' will introduce an increase in the expenses of passengers as it would lead to rise in the fare.
"These policies put forward by nodal agencies only take into consideration the profitability of airport, while the finances of airlines are not given thought," said a senior official with an Indian airline.
He said that currently, Indian airlines are finding it difficult to compete with foreign competitors in terms of pricing.
26/07/17 Vikram Vinod/Times of India
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As per the order, Cial is required to compute the aggregate revenue requirement under the 'Hybrid Till' model.
Under this model, the airport charges are calculated using 100% aeronautical revenue and 30% of non-aeronautical revenue to determine airport charges.
Airport officials suggest that the new order will only lead to "marginal" increase in landing fee and parking fee for airline operators. But the operators suggest that the introduction of 'Hybrid Till' will introduce an increase in the expenses of passengers as it would lead to rise in the fare.
"These policies put forward by nodal agencies only take into consideration the profitability of airport, while the finances of airlines are not given thought," said a senior official with an Indian airline.
He said that currently, Indian airlines are finding it difficult to compete with foreign competitors in terms of pricing.
26/07/17 Vikram Vinod/Times of India
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