Defer higher air navigation charges at Indian airports: IATA

Airports serving less than 12 lakh passengers annually are considered as non-major

IGI airport
IGI airport
Press Trust of India New Delhi
Last Updated : Jan 05 2017 | 5:35 PM IST
Global airlines body IATA has urged the government to defer implementation of revised air navigation charges at various Indian airports saying there was "complete lack" of consultations with stakeholders in this regard.

The charges for airport services as well as those related to air navigation at non-major aerodromes have been revised effective December 16, 2016.

Referring to the increase in Air Navigation Services (ANS) charges at all airports and airport services charges at non-major aerodromes, IATA said it is deeply disappointed by the "complete lack of user consultation and transparency before arriving at this proposal".

Also Read

In a recent letter to the Civil Aviation Ministry, IATA said this is particularly surprising given that significant conversations with Airports Authority of India (AAI) had indicated that full and thorough consultation with stakeholders would be undertaken prior to any such changes.

International Air Transport Association (IATA) has also requested that the "implementation of these increases is deferred indefinitely and that the relevant agencies enter meaningful negotiation with affected stakeholders".

According to the grouping, fees and charges can only be set realistically through a detailed and structured cost assessment process involving consultation with all affected stakeholders.

"This must be a robust process in order to reach consensus between the service provider and airlines as business partners. IATA believes that at least a four-month notice of revision should be given to airlines and their representative organisations," the letter said.

IATA, which represents over 265 airlines from across the world, said increases in charges without proper consultation has the potential to rapidly erode competitive advantage and potentially jeopardise growth prospect of tourism industry as well as of wider Indian economy.

Generally, airports serving less than 12 lakh passengers annually are considered as non-major and charges for these aerodromes are fixed by Directorate General of Civil Aviation (DGCA).

Most of the non-major aerodromes are owned, managed and operated by government-owned AAI. It levies charges for services, including route and terminal navigational landing fee, as well as parking.

In the letter to Civil Aviation Secretary R N Choubey, IATA Regional Director (Safety and Flight Operations) for Asia Pacific said that airport and air navigation service charges must be in line with ICAO tenets.

Copies of the letter, dated December 9, have also been sent to AAI Chairman Guruprasad Mohapatra and DGCA chief B S Bhullar.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 05 2017 | 5:30 PM IST

Next Story