Airlines may seek cut in airport charges

Bangalore: If industry insiders are to be believed, airlines, which are in no mood to relent to civil aviation minister Praful Patel's request to rollback the recently introduced congestion surcharge of Rs 150 per passenger, may use the opportunity to negotiate for a cut in the landing, parking and navigational charges at major airports.
The recent formation of Federation of Indian Airlines (FIA), an industry body, it will be easier for the carriers put collective pressure on the minister.
Domestic carriers have justified the surcharge saying that airports snarls have bumped up their costs because of the higher fuel burn.
But not everyone in the industry is sharpening arsenal for the showdown. “It won’t be a bargaining situation,” says SpiceJet Ltd managing director Ajay Singh even as he says the congestion surcharge is a rational levy.
Along with congestion surcharge, airlines currently also levy a fuel surcharge of Rs 750 per passenger because of the hike in aviation turbine fuel (ATF) prices last year. They have not reduced this charge despite ATF prices easing by around 16% in the last two months.
06/12/06 Praveena Sharma/Daily News & Analysis

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