25% Hike In Bangalore Airport Levy Mooted For

In a major departure from norms, aeronautical charges at the proposed international airport to come up near Bangalore are to be fixed 25 per cent higher than the charges levied by the Airport Authority of India (AAI) at the countrys major international airports over the next five years.

Aeronautical charges include landing, parking and route navigation charges. The hiked charges are to be implemented subject to the approval of the regulatory authority. AAI has been asked to submit to the Tata-led consortium (which is setting up the new airport), the projections of charges over the next five years at the major international airports.

At a meeting held last November, the consortium had been promised by the civil aviation ministry that aeronautical charges at the new airport would be higher than those at the other existing airports. This, AAI sources, said was a complete departure from the existing norms.

It had also been decided at the meeting that all cargo operations (in addition to passenger) would be shifted to new airport. The consortium has subsequently held that it would review its role in the project if the terms agreed to are changed.

At the meeting, it was also decided that Bangalore would be promoted as a regional hub for regional airlines and the state government would be closely associated as a co-promoter of regional airlines in the area. Bilateral rights would remain with the central government and no guarantees would be given to the consortium in this regard.

According to the minutes of the meeting, Bangalore could also be considered as a point of call for various airlines. Non-aeronautical charges were to be set at not less than 40 per cent and were to be increased by approximately 5 per cent so as to reach 65 per cent in the fifth year of operation.

The meeting, however, left the issue of the price of land for the proposed airport unresolved. Land rates were to be decided between the state government and the consortium. Sources said that the consortium had also been promised that the existing HAL airport at Bangalore would be closed down.

Sources said that apart from the closure of the HAL airport, the promise that aeronautical charges would be higher than the other airports was another concession being extended to the airport. The consortium has, however, argued that the above conditions are necessary for the project to be viable. Besides, since all the conditions had been agreed to at the meeting, they must be honoured, says the consortium.