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Airport devt fees: AAI awaits final nod
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March 06, 2009 20:16 IST
Last Updated: March 06, 2009 20:29 IST

The Airports Authority of India said on Friday it has received 'in principle' approval from the government to charge development fees at the airports under them and were now awaiting the final nod over the amount to be levied.

"We have got the in-principle approval but are waiting for the final approval and the quantum of amount to be charged as the Airport Development Fees," AAI chairman V P Agarwal said on the sidelines of a seminar in New Delhi on Friday.

He said it was expected that the AAI would be able to charge the airport development fee for three to four years 'as large scale development of infrastructure is taking place in the country.' The AAI is undertaking modernisation of 35 non-metro airports, besides the ones at Kolkata and Chennai.

Most of the airports, that were being modernised were loss making, he said justifying the proposal to levy the fees.

On the issue of dues of various airlines to the AAI, he said it had come down to a level which was almost equivalent to the security amount deposited by the airlines. Of the total dues of about Rs 1,100 crore (Rs 11 billion), as much as Rs 700 crore (Rs 7 billion) of the unsettled amount was owed by national carrier Air India and remaining Rs 400 crore (Rs 4 billion) was pending with private airlines.

"We are not here to kill the airlines. So some concession and relaxation is being provided to them keeping in view the situation of the aviation industry, which is facing a downturn, Agarwal added.

The decision to levy development fees on passengers leaving the airport (both doemstic and international) by Indian airports was strongly criticised by the global airlines' body International Air Transport Association on Friday, which said when high costs were discouraging air travellers to fly, imposing further burden was not justified.

It also gave examples of several Asian airports which had reduced charges and such fees to generate demand for air travel.

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