AAI rolls back raise in Goa airport charges from charter operators

Tour operators feared the move would lead to a considerable reduction in charter flights to the state

Fearing a sharp decline in tourist arrivals in Goa, the Airport Authority of India (AAI) has rolled back a proposed hike in the deposit amount collected from charter companies.

Thie climbdown comes in the back of protests from tour operators in Goa who feared the move would lead to a considerable reduction in charter flights to the state.

Charter companies will have to pay a security deposit amount of Rs 1 lakh for operating up to 25 flights, Rs 2 lakh for up to 26-50 flights and Rs 5 lakh for above 50 flights, according to the latest office order by AAI.

Till last winter, the authority charged Rs 2 lakh security deposit per slot for the entire season. AAI collects a deposit from charter companies while granting them arrival and departure slots.

Earlier, the AAI had proposed to increase this security deposit to a minimum Rs 25 lakh for up to 25 movements and Rs 1 crore for more than 75 movements. Further, for every cancellation or non-utilisation of slot company were asked to pay a penalty of rupee one lakh adjustable against the deposit.

The last date for charter companies to apply for slot allotment for the coming season is August 20 and the approval of the slots will be issued from September 1-7. If a charter operator cancels a slot 15 days after the approval or doesn't utilise the slot, a penalty of Rs 25,000 per flight will be charged against the deposit.

A decision to sharply revise the deposit led to protests from local tour operators as the state already witnessed a decline in the number of charter planes flying to Goa last year.

In 2013-14, Goa airport handled 1,141 charter flight movements, which declined to 889 during last season till May 2015 owing to weak foreign currency. Also, according to local tourist operators, the number of Russian tourists declined by about 40 percent last winter compared to 2013-14 seasons with many cancellations between January-May.

The charter season in Goa runs from October-May and Russia and Britain are the top source markets in the state.