Monday, August 13, 2018

To boost aviation sector, government plans inflation-linked pre-determined tariff structure for airports

The government plans to have a pre-determined tariff structure linked to inflation for airports as it seeks to address issues hindering investments in the fast-growing Indian aviation sector, a senior official said. Currently, there is cost plus tariff structure wherein the rates for an airport are determined every five years, which is known as the concession period.

Many more airports are expected to be operational in the coming years, especially with rising air passenger traffic and infrastructure woes at some of the existing major aerodromes.

"The wide variation in airport tariffs create challenges for domestic and foreign airlines who have to recover the same from passengers," Airports Authority of India (AAI) Chairman Guruprasad Mohapatra told PTI.
12/08/18 PTI/ZeeBiz
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