Bangalore airport charges hiked; IATA opposes move


New Delhi, Jun 16 (PTI): Airport tariff regulator AERA has fixed Rs 1,368 and Rs 342 per international and domestic passenger as user development fee (UDF) and other charges for Bangalore's Kempegowda airport but the airlines have opposed the ''over 100 per cent'' hike in tariff.

In a latest order, the Airports Economic Regulatory Authority (AERA) also fixed charges for aircraft landing, parking, housing and other charges from July 1 till March 31 next year and higher tariff rates from April 1, 2015 till March end 2016.

While only UDF levels were lowered for 2015-16 to Rs1,226 for embarking international passengers and Rs 306 for domestic passengers, all the other tariffs were hiked for this period.

Terming the move as "a double whammy to Indian aviation", IATA's Regional Vice President (Asia Pacific) Conrad Clifford said in a statement that international airlines operating to Bangalore would now face "a steep increase in their operating costs with a 145 per cent increase in landing charges and a 105 per cent increase in parking charges".

The official of the global airlines body said it was also "disappointing" that AERA "deviated from the single till approach" in the case of Kempegowda International Airport which was "contrary to what AERA had previously opined that the single till approach was most appropriate for India".

"This deviation in policy can increase costs for airlines and passengers, thus negatively impacting traffic. This will hurt an already fragile Indian aviation industry," Clifford said, adding that funding airport development was "not a valid justification to deviate from the single till approach."

Under the 'single till' principle, airport activities, both aeronautical and commercial, are taken into consideration to determine the level of airport charges. By contrast, only aeronautical activities are taken into consideration under the dual till principle.

Maintaining that funding of the airport could be done through other means like equity, loans and bonds, Clifford said: "Instead, airport users are being penalised by being a convenient source of funding. They are unfairly made to pay for facilities that have yet to be built."

The International Air Transport Association (IATA) has been stressing that aviation should be treated as a strategic national asset that would pay dividends to the Indian economy.

Aviation supports 8.8 million Indian jobs and underpins 1.5 per cent of GDP, as per IATA figures.

"This could be a lot more. And the more globally connected that India is, the more opportunities will be created for jobs, trade and inward investment. AERA's decision is a step backwards for Indian aviation," the IATA officer said from Singapore.

  

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Comment on this article

  • tomcat, Mangalore/Oman

    Tue, Jun 17 2014

    industrialist support politicians during election now it their turn for "ache din " even chai will become costly.

    DisAgree [4] Agree [6] Reply Report Abuse

  • Alwyn D Almeida, Mangalore/Dubai

    Tue, Jun 17 2014

    Everything on passenger ? We are all PRE PAID citizens of INDIA. God save and Bless INDIANS

    DisAgree Agree [9] Reply Report Abuse

  • ISMAIL.K.PERINJE, PERINJE

    Tue, Jun 17 2014

    Dear Mr Kumar,KA 19/Bahrain,

    Reference to your assessment about KIA pertaining subject matter,the AIRPORT and it's management comes under CENTRAL GOVT PREVIEW.As IATA said International AIR TAXI has to shell out more as AERA also increased it's landing charge etc more.The increase is whopping 145%!!Ultimately operating cost to KIA tend to increase that is passed to Air Passengers!Central AVIATION MINISTER(deputy Aviation minister from Karnataka)might informed the unscientific increase in KIA which should looked in to.

    DisAgree [1] Agree [6] Reply Report Abuse

  • Kumar, Mangalore / Bahrain

    Tue, Jun 17 2014

    Dear Mr. ISMAIL.K.PERINJE/KA19-KA20.

    For you information KIA (Bangalore International airport is a public-private joint venture) and only 13% of the Shares are held by IAA. I raised the objection because you pointed out that the current govt. of india was responsible for the charge hike. Since KIA is partially owned by govt, i dont think your blaming of the current govt. is right!

    DisAgree [2] Agree [5] Reply Report Abuse

  • jamil ahmed, udupi/qatar

    Tue, Jun 17 2014

    Above this fee they also charge on every aircraft which is again on the passenger. This fee charged by KIA is ridiculous. Previously there was what is called airport tax on every international passenger. Now we are not aware how it is charged. However for the amount we pay during our journey, it will be good if good services are provided without causing inconveniences to passengers.

    DisAgree Agree [4] Reply Report Abuse

  • siddapur abdul raheeman saheb, siddapur/karnataka/saudia

    Mon, Jun 16 2014

    It is neither Mr.Modi or BJP but it is AEra which increased the tariff.tariff. Bangalore airport is in developing stage only which needs lot of airlines and passengers to be attracted by it . When there is good business then only we can make good profit.

    DisAgree Agree [4] Reply Report Abuse

  • Jossey Saldanha, Mapusa

    Mon, Jun 16 2014

    FEKU promised that prices will come down...

    DisAgree [8] Agree [12] Reply Report Abuse

  • ISMAIL.K.PERINJE, PERINJE

    Mon, Jun 16 2014

    India's every sector will experience 'BURE DIN'under Modi's regime.MODI/BJP are hypocrites and used people's sentiment to grab the power.Now they are talking below than UPA did in their regime(Inflation and price rise)Punishing Air Passengers is not good sign.

    DisAgree [17] Agree [50] Reply Report Abuse

  • Ahmed, UAE

    Mon, Jun 16 2014

    Dear Ismail, Modi rule will be much better than the "mother and son" rule which we saw in the last 10 years.

    DisAgree [56] Agree [20] Reply Report Abuse

  • Sharma, Delhi,Dubai

    Tue, Jun 17 2014

    Modi silent rule,rape silent,iraq crises silent,china staple visa silent,pak fireing silent, Ma and beta had guts and kept our economy and enemy in control? Not like silent. previous PM told Garajnewale baraste nahi............Ma beta garajthe nahi, Lakin devalpoment kiya .Modi can not do even 5 percent.May be Bhutan he will devalope.

    DisAgree [4] Agree [26] Reply Report Abuse

  • Kumar, Mangalore / Bahrain

    Tue, Jun 17 2014

    Dear Mr. ISMAIL.K.PERINJE,

    What has an airport charge hike have to do with MODI govt? I am a neutral person when it comes to politics, but what your saying does not make sense at all? Airport charges are levied by the concerned Airport in our case Bangalore Airport, do you know the cost of a ticket to Bangalore? and do u know the cost of a ticket to any destination is Kerala? if you know about it you wont not be commenting like this. Please understand the situation and think! we are paying twice the rate to land in Mangalore or Bangalore as people compared when they land in Kerala. Increasing the fees means paying more for the ticket! If were really paying for a ticket from middleeast you would know the pain? so think before you comment sir. Every year the prices are hiked to bangalore the reason being bangalore airport hikes their prices! thats how it is.

    DisAgree [10] Agree [11] Reply Report Abuse

  • Sharma, Delhi,Dubai

    Tue, Jun 17 2014

    If airport hike nothing related how you say Modi will change Dear Kumarji.Bangalre is world class aiport and compared to even deloped countires charges is too less.Furter India has worlds cheapest air services ,cheapest telephone service,cheapest train,and many more because Congress has really uplifted us.Today a normal low salary person afford air travel India means all credit goes to Congress .Let us accept this and people voted Modi to see more more devalopement.But one thing is sure from his silent means he is only successful in creating hatedness in Indian people which is harfull to our Country.People not voted him for keeping silent.He must stop this hatedness by baning all those moral policing group and then real development will come.Our country is multi religious country and everyone contributed to country growth.But this PM created confusion in Indian people by his silent now and during election campaign he said so many things and suddenly silent now.He should take responsibility being premier .

    DisAgree Agree [2] Reply Report Abuse


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