We need stimulus, not fee: IATA

Civil Aviation Minister Praful Patel and the International Air Transport Association (IATA), a global lobbying body of international airlines, are at loggerheads regarding the levy of airport development fees (ADF) by the Delhi airport and a proposal to levy a similar charge at the Mumbai airport.

In a statement criticising the levy, the IATA today said that the ADF came at a time when the industry was badly in need of a stimulus package to boost demand.

“The ADF for the Delhi airport and the proposed ADF for the Mumbai airport are essentially charges to pre-finance airport development projects. Pre-financing increases the costs of air travel when passengers are made to pay for facilities that are not yet in use. It is unfair as there is no guarantee that the passengers paying for future facilities today will use the service in the times to come,” said an official statement issued by the global body.

Responding to the comments during the inauguration of the new domestic terminal, T1D, at the Delhi airport, Patel said projects of such size could not be built without some contribution from passengers.