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Newstrack
Indian airport charges lowest among international hubs
Atreyee Dev Roy - New Delhi
A report submitted by India to the International Civil Aviation Organisation
(ICAO) for the 'Worldwide symposium on performance of air navigation system'
shows the airport charges in the country are comparatively low when compared
with major international hubs.
International as well as the domestic airlines has complained that the landing,
parking and route navigation charges in India are amongst the highest. Based
on the charges worked out as per ICAO specifications, amongst 167 countries
India ranks as low as 86, 86 and 103 for landing charges taken for Boeing 747,
Airbus A310 and Boeing 737 aircraft.
Also Transport Research Laboratory, Australia conducted a study on the aeronautical
charges (2002) and positioned countries on the index of 1 to 100. On the basis
of landing parking, terminal navigation and landing charges (TNLC), India's
position on that scale is 22, which is lower than airports in New York, Frankfurt,
London, Bangkok, Singapore, Hong Kong, Kuala Lumpur and Delhi. The landing charges
for Airbus A320 aircraft are almost one third of that of the United Kingdom
and less than half of that
of China. It is also significantly lower than the rates charged in Australia,
and our neighbours Pakistan, Bangladesh and Saudi Arabia. However, landing charges
in India are higher than those of Germany and Sri Lanka.
For long-haul aircraft like the Boeing 747 family, the landing charges are the
lowest in India, when compared with other important stations like the UK, China,
Australia, and Germany etc. Even in terms of route navigation facilities charges
for the most popular long haul aircraft like Airbus A310 and Boeing 747 family,
the charges are significantly lower than Germany, China, Australia and Canada.
As per ICAO specifications, airport charges are related to all the costs of
operating the airport and its ancillary services, including a reasonable rate
of return and allowance for interest payments on capital investment and depreciation
of assets. The guidelines also say that the charges must be non-discriminatory
both between foreign users and domestic users and between any two or more foreign
users.
The Airport Authority of India levies airport charges for the cost of infrastructure
and services at the airport.
| Shaheen Mansuri - Mumbai
Airport user charges, including landing, parking, terminal
navigation and passenger service fee, at Indian airports are nearly 25
per cent higher than similar charges in other international airports,
resulting in international airlines dodging Mumbai, Delhi and other metros
as stopover points for long haul flights.
For instance, Singapore Airlines has a long haul flight
from Singapore to the US sector and has a stopover in China, since the
airport fee at Beijing International Airport or Pudong Airport in Shanghai
amounts to not more than 90 yuan (US$ 111).
And if it were to consider Mumbai Airport for a stopover,
the airline would have to pay 'terminal navigational landing charges'
of Rs 989 (US$ 23) for 10,000 kgs and Rs 5,951 (US$ 143) for 10,000 kgs
and above.
Landing charges for over 50,000 kgs would be Rs 12,400
(US$ 298) + Rs 376 (US$ 9) per every excess 1,000 kgs, apart from a service
fee of Rs 200 per passenger. These charges are subject to a service tax
of 12 per cent. Charges at Delhi, Kolkata and Bangalore, all managed by
the Airports Authority of India (AAI) at present, are on the higher side.
Similar is the case with British Airways. It has long
haul flights of over 21 hours from London to Sydney with Changi Airport
in Singapore as a stopover. "Indian airports would be a viable option
for stopovers if the airport fee were lower as compared to the fee charged
at Changi," said an industry source.
Kapil Kaul, CEO, South Asia and Middle East, Centre for
Asia Pacific Aviation (CAPA), had recently suggested that the ministry
of civil aviation "will need to continue to work with state and central
government departments to rationalise airport user charges which should
be in line with international levels," adding that, "With competitive
airport fees, combined with efficient airport infrastructure as it comes
on line, India has the potential to become one of the lowest cost producers
of air services in the world, at which point in time the potential for
the sector's growth may just be commencing."
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