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HindustanTimes.com » Business » Aviation » Story
Foreign airlines oppose peak hour levy

Lalatendu Mishra

Mumbai, March 6, 2007
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A day after the government hinted at imposing a peak hour penalty to discourage flight movements during morning and evening peak hours at India's three busiest airports, the international airlines lobby came down heavily on such a proposal. 

International Air Transport Association (IATA) having membership of world's leading 260 passenger and cargo airlines disapproved of the government's proposal on imposition of a peak hour levy to decongest airspace over Mumbai, Delhi and Bangalore.

IATA has asked the government not to impose peak hour charging and rather address the underlying causes of congestion.

On Monday Union Civil Aviation Secretary Ashok Chawla stated that airlines, which reduce their frequencies during off peak hours as compared to their peak hour movements would have to shell out double the amount paid towards airport and navigational charges. Airlines spend nearly 6 per cent of their revenue as landing and navigational charges.

IATA in a statement on Tuesday said peak hour pricing at airports would add to passenger costs without achieving the desired outcomes. "Airline operations —particularly at hubs for international flights — are to a very large extent driven by complex networks, timetable issues and curfew restrictions, so there is little scope for change regardless of peak pricing penalties," IATA said.

"Peak hour pricing will also place a short term constraint on passenger and freight demand, and in the long term, lower benefits generated for users and the wider economy," the statement added.

Since IATA has a current pricing agreement with Airports Authority of India (AAI) it has asked the government to formally consult with it on any proposed changes.  

It has also urged the ministry to form a Working Group, including IATA/airline representatives, to examine all options to address current issues such as congestion and to better facilitate the growth in aviation in India.

Interestingly a section of the Indian scheduled operators and passengers have welcomed the government's proposal.

Email Lalatendu Mishra: lalatendu.mishra@hindustantimes.com

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