The International Air Transport Association has expressed disappointment with the Airport Economic Regulatory Authority's order revising Mumbai airport tariff by 154%. According to IATA the tariff rise would be have been lower than 80% had AERA treated revenue from cargo operations at airport as aeronautical revenue.
On Wednesday the AERA revised the aeronautical charges and introduced user development fee for passengers travelling from Mumbai airport. Aeronautical charges include landing and parking fees and charges for fuel throughput and use of aerobridges and common check in counters.
"While we welcome some aspects of AERA's decision, such as the rejection of Mumbai airport's application to increase charges by 873% and the introduction of slot charges, overall, AERA's decision is disappointing. The increase in aeronautical revenue approved by AERA is effectively 164.29% when taking into consideration consumer price index. This increase could have been 80% lower if AERA had treated cargo services revenue as aeronautical revenue - in line with the AERA Act under which the independent regulator has been established - instead of accepting Ministry of Civil Aviation's contrary position,'' IATA spokesperson Albert Tjoenga said in a statement.
"The huge burden placed on international flights with the 120% increase in landing fees has the potential to affect their viability given already thin operating margins. This can only damage Mumbai's hub ambitions. It is made worse by the fact that there continues to be discrimination between international and domestic flights in the landing fees, aerobridge fees and cute counter charges for the same service being delivered. This contravenes International Civil Aviation Organisation's charges principles. Instead of reaping the maximum economic benefits that air connectivity can bring to India's economy, AERA's decision is adding to the woes of India's ailing aviation industry,'' he added.