Airport fees to align with service quality

Airport charges paid by airlines in India, among the second highest in Asia, will now be based on the quality of service the airports provide.

This would be a key function of the Airport Economic Regulatory Authority (AERA), to be set up to regulate tariffs, said a civil aviation ministry official.

At present, airport charges, which include landing and parking charges, route navigation facility charges and space rental charges, are uniform across the country.

The quality of service will be determined on the basis of the criterion fixed by global civil aviation bodies "" the International Civil Aviation Organisation (ICAO), the International Air Transport Association (IATA) and the Airports Council International.

"Most of these charges are the same at all airports in the country and are based on the weight of the aircraft and whether the flight is international or domestic. The rates have no relation to the service provided," said a ministry official.

The government cleared the Bill for setting up the Airport Economic Regulatory Authority (AERA) in May. The authority, which will determine the charges once in five years, will have the power to amend the tariffs from time to time. It will also have penal powers.

The criteria set by different bodies will be used to judge different aspects of the service. For instance, passenger services at the terminal will be graded on the 34 criteria set by the ACI, including check-in time (20 minutes), time for security checks (10 minutes), Customs and immigration (20 minutes), conveyor belt time (the last bag must be received within 20 minutes of landing) and cleanliness.

India's airport charges are the second highest among the Asian and Gulf airports after Hong Kong. Experts say the charges in India are higher than in Europe and the US.

Also, international flights pay 33 per cent more than domestic flights, which is the opposite of international practice. For instance, Kuala Lumpur airport charges about $203 for a small Airbus A320 aircraft with a three-hour turnaround time while Indian airports charge four times more, $1,060.

In India, airlines pay $2,331 for handling a long-haul flight of a Boeing B777, while Kuala Lumpur airport charges three times less, $753. Although the present charges are fixed, the airlines fear the greenfield airports will hike the charges once they are operational.

"Charges for space rental, including back-up and ticketing offices, to be levied by the greenfield airport authorities in Hyderabad and Bangalore are going to be double of what we pay the AAI," said an airline official.