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AAI plans to hike passenger fee
Published on 22 Sep. 2009 11:13 PM IST
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The Airports Authority of India (AAI) is planning to move a proposal seeking a substantial hike in passenger service fee (PSF), according to a source familiar with the development. PSF forms a part of every airline ticket and goes to the government’s coffers for providing security and passenger facilitation services. The quantum of increase to be proposed is not known yet. According to DNA report, currently, the government earns Rs 225 from every Indian air passenger. About Rs 140 of this is used for providing security cover across airports and the remaining goes for passenger facilitation such as air conditioning, upkeep of toilets, trolleys etc. Greenfield private airports at Hyderabad and Bangalore have begun charging a hefty ‘development fee’ of Rs 375 per departing domestic passenger and Rs 1,000 for international passengers. AAI manages 125 airports, only 15 of which are making profits. So the authority is looking for ways to enhance revenue. A senior AAI official said the authority was planning to approach the government for hiking the passenger facilitation component substantially. Already, the government is examining a proposal to allow development fee on the lines of Hyderabad airport for Jaipur airport. The official confirmed that the development fee proposal has already been submitted to the newly formed Airport Economic Regulatory Authority (Aera). He also made it clear that passengers will either have to pay development fee or an increased passenger service fee on their tickets --- both levies would not be charged simultaneously. Though Aera has been set up to mediate on any economic disputes across airports, the official made it clear that only cases pertaining to airports where the annual passenger traffic is more than 1.5 million would be heard by the authority.

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