Flying from capital to cost more

Airports Authority of India’s proposal for hike in aeronautical tariff likely to be approved

May 26, 2017 06:26 pm | Updated May 28, 2017 07:34 am IST - THIRUVANANTHAPURAM

A user development fee of ₹450 has been proposed for each embarking passenger in the domestic sector from June 1, 2017 to March 21, 2018.

A user development fee of ₹450 has been proposed for each embarking passenger in the domestic sector from June 1, 2017 to March 21, 2018.

Flying from Thiruvananthapuram will cost more from June with the Airport Economic Regulatory Authority (AERA) set to give its nod for a proposal of the Airports Authority of India (AAI) for a steep hike in aeronautical tariff at the Thiruvananthapuram international airport to enable the latter to recover its investments.

A user development fee of ₹450 for each embarking passenger in the domestic sector has been proposed from June 1, 2017 to March 21, 2018. Those flying in the international sector will have to pay₹950 instead of the present ₹575.

The passenger service fee (PSF) - Security proposed is ₹130 for each embarking passenger or $3.25 for each international and domestic passenger. In addition to the user fee, a throughput charge of ₹39.80, PSF facilitation fee of ₹77 and $1.93 from each domestic and international passenger is now collected. But the AAI has proposed to merge the user fee and PSF facilitation charge and only the user fee will be applicable to all passengers.

An increase of 4% per annum every subsequent year from 2018-19 onwards in the user fee has been proposed. The operating airlines will also have to pay more from next month for using the premier airport as a hike has been proposed in landing, parking, handling of aircraft and throughput charges, which are likely to be passed on to passengers.

For throughput charges, the proposed rate is ₹146.80 per kl. In the case of landing charges (international) the fee proposed is ₹ 300 a tonne up to 25 tonnes to ₹82,250 a tonne for above 200 tonnes and ₹520 for every excess tonne. In the case of domestic flights, it is ₹60 a tonne up to 25 tonnes to ₹66,00 above 200 tonnes and ₹440 for every excess tonne.

Incentives have been proposed for domestic flight with 1% for 75 landing a week, 2% for 125 landings, 3% for 175 landings, 4% for 225 landings and 5% for 225 landings per week.

No landing charge has been proposed for aircraft with a maximum certified capacity of less than 80 seats operated by domestic scheduled operators, helicopters of all types, approved flying school and Flying Training Institute aircraft.

Flights operating under Regional connectivity scheme will be completely exempted from landing charges.

The parking fee has been waived for the initial two hours. It is proposed to waive off the night parking charges for all domestic scheduled operators if the State lowers the rate of tax (VAT) on ATF up to 5%.

The AERA has already completed the meeting of the stakeholders on the proposed tariff hike on the basis of the consultation paper floated by it. A formal order as per the AERA Act 2008 is awaited, Airport Director George G. Tharakan told The Hindu .

The AAI has submitted that it has earned ₹530.94 crore during the first control period from 2012 to 2016 and a shortfall of ₹350.72 crore. In 2016-17, the traffic through the airport was 3,94,3,389 and the air traffic movement 29,561.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.