 "Airlines, aviation ministry meet on high airport charges")
The civil aviation ministry held a meeting with all the airline chiefs on Tuesday to discuss various problems faced by the carriers such as high airport charges, ground-handling issues and the rising cost of operations.
“The airlines raised concerns related to high landing charges and the ministry promised to look into it. More importantly, the rising cost of operations by the airlines including royalty charges were considered by the ministry,” said an executive who attended the meeting.
The Union government has proposed to hold two more meetings with the airlines on these matters, sources said.
Earlier, civil aviation secretary R N Choubey had said the government would bring down costs. “One of the issues is related to airports and the cost that goes into it. We are committed to bringing down the costs. The regulation of airports will be done in such a manner,” said Choubey, while speaking at the ‘Aviation Day’ event jointly organised by the Confederation of Industry and International Air Transport Association (IATA).
Choubey said the new civil aviation policy would address the issue. He noted that Airports Authority of India chairman R K Srivastava had also spoken in favour of a single-till model. Under the single-till model, all airport activities, both aeronautical and commercial, are taken into consideration when airport charges are set.
Tony Tyler, director-general and chief executive officer of IATA, said the cost of operation for airlines in India is 50-60 per cent higher than global competitors and these include airport charges, high taxes and complex regulatory mechanism.
“The single-till principle and AERA (Airports Economic Regulatory Authority)’s mandate to determine airport charges independently should be firmly at the core of all the discussions as the government considers concession contracts for Jaipur, Kolkata, Ahmedabad and Chennai,” Tyler said in his speech at the event.
“The airlines raised concerns related to high landing charges and the ministry promised to look into it. More importantly, the rising cost of operations by the airlines including royalty charges were considered by the ministry,” said an executive who attended the meeting.
The Union government has proposed to hold two more meetings with the airlines on these matters, sources said.
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Earlier, civil aviation secretary R N Choubey had said the government would bring down costs. “One of the issues is related to airports and the cost that goes into it. We are committed to bringing down the costs. The regulation of airports will be done in such a manner,” said Choubey, while speaking at the ‘Aviation Day’ event jointly organised by the Confederation of Industry and International Air Transport Association (IATA).
Choubey said the new civil aviation policy would address the issue. He noted that Airports Authority of India chairman R K Srivastava had also spoken in favour of a single-till model. Under the single-till model, all airport activities, both aeronautical and commercial, are taken into consideration when airport charges are set.
Tony Tyler, director-general and chief executive officer of IATA, said the cost of operation for airlines in India is 50-60 per cent higher than global competitors and these include airport charges, high taxes and complex regulatory mechanism.
“The single-till principle and AERA (Airports Economic Regulatory Authority)’s mandate to determine airport charges independently should be firmly at the core of all the discussions as the government considers concession contracts for Jaipur, Kolkata, Ahmedabad and Chennai,” Tyler said in his speech at the event.