In an effort to convince the Indian authorities to lower airport charges, the Geneva-based International Air Transport Association (IATA) will play host to the Chairman of the Airport Economic Regulatory Authority (AERA), Mr Y.S. Bhave, in January.
The AERA Chairperson's visit comes as IATA has placed India on its “wall of shame” for increasing airport charges.
“India increased airport charges by $587 million during 2009. In Delhi and Mumbai, the user charges increased by almost 200 per cent. We will bring to the notice of Mr Bhave the situation in India and what other countries around the globe are doing.
“IATA hopes that it can play a role for an industry which is beginning to show signs of recovery,” the IATA Director-General, Mr Giovanni Bisignani, said.
The Director, Airport and ATC Charges and Taxation, IATA, Mr Jeff Poole, told Business Line that India has a unique opportunity to get it right at the start and this will be conveyed to the AERA Chairperson during his visit.
During the year, IATA claims to have convinced several countries to withdraw various taxes on the industry, including getting the Netherlands to cancel the Air Passenger Tax as it would affect tourist inflow. Similarly, it was able to convince Mauritius not to impose a tax on aviation fuel.
Incidentally, India is not the only country that increased charges during the year. Dubai also increased passenger fees by $227 million while London Heathrow increased its charges by $161 million during the year, Mr Bisignani said.
A number of airports including Hyderabad, Delhi and Mumbai are proposing to increase user charges. In October, the Chairman of the GMR Group, the promoters of Hyderabad airport, Mr G.M. Rao, told Business Line that the operator had applied to the regulator to increase the user development fee at Hyderabad airport.
The airport plans to charge Rs 475 from every departing domestic passenger and between Rs 2,700-Rs 2,800 from an international passenger instead of the Rs 1,000 that an international passenger pays at present.
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