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Govt hikes air navigation charges by 4%, airlines demand roll back

IATA has urged the civil aviation ministry to reverse the decision and work with the industry on a business recovery plan

Aviation
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The AAI is itself facing a financial crisis and is projected to report its first annual loss in FY2021

Aneesh Phadnis Mumbai
Air Navigation Service (ANS) charges or fees for radar and air traffic control services have been hiked by 3.5-4 per cent bringing relief to Airport Authority of India (AAI). Airlines will have to absorb the higher cost as there is no room for increasing fares at present.

On Wednesday, Director General of Civil Aviation Arun Kumar notified the decision after the government approved AAI's long pending demand for an increase in the levy. The navigation charges collected at present were approved in early 2000. A hike in charges in 2017 was rolled back because of opposition from airlines.

ANS charges