Saturday, May 11, 2019

Coimbatore airport to hike user fee by Rs 400 to Rs 500

Coimbatore: Flying out or into the city airport could become more expensive soon with the airport authorities considering the option of levying a user development fee of Rs 400-Rs 500 or so from the passengers. Parking charges for vehicles are also likely to go up this financial year. These are just a few of the measures the airport authorities are mulling to boost the revenue to take up more infrastructure works.
As the airport’s passenger traffic had crossed 24 lakh in 2017 and 30 lakh last year, the Airport Economic Regulatory Authority (AERA) has begun studying and assessing the possibilities to boost non aeronautical revenue from the airport. This is likely to lead to an increase in costs for passengers and operating costs for airlines. However, experts say this will make the airport profitable and lead to more facilities for passengers.
Sources in the airport said one measure would be the introduction of a user development fee, which does not exist now. “Airports can usually charge Rs 300-Rs 500 from the domestic and international passengers,” said Deepak Shastri, former regional executive director, southern region of Airports Authority of India.
Airport authorities are also likely to hike vehicle parking and aircraft landing charges by more than 25%. “At a recent stakeholders meeting, international airlines like Silk Air and Air Arabia have expressed their concerns over the move to increase landing charges,” said an official.
The new charges will be in place for a term of five years or until March 2023. “This is for the airport to recover the capital it invests in new infrastructure, including its expansion. They do plan to construct a new terminal building and expand the runway once the state government acquires the required land and hands it over,” said a source.
11/05/19 Pratiksha Ramkumar/Times of India
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